BOARD MEETING DATE: April 4, 2003
AGENDA NO. 29
Stationary Source Committee
SYNOPSIS:
The Stationary Source Committee met Friday, March 28, 2003. Following is a summary of that meeting. The next meeting will be April 25, 2003, at 10:30 a.m., in Conference Room CC8.
RECOMMENDED ACTION:
Receive and file.
Ronald O. Loveridge, Chairman
Stationary Source Committee
Attendance
The meeting began at 10:40 a.m. Present were Chairman Ron Loveridge (left at 11:25 a.m.), Vice Chair Leonard Paultiz, (chaired after 11:25 a.m.), and Committee Members William Craycraft and Jane Carney. Absent was Committee Member Fred Aguiar.
INFORMATIONAL ITEMS
- Contract Modification with Los Angeles County Agricultural Commission Department of Weights and Measures for Gasoline Vapor Recovery Inspections and Testing
Carol Coy, Deputy Executive Officer, Engineering & Compliance presented this item. AQMD has been contracting with Los Angeles County Weights and Measures (W & M) to conduct screening inspections of vapor recovery systems at retail gasoline dispensing facilities since 1994. The past several years W & M has conducted over 1,000 inspections per year. This is a cost effective and successful joint effort. The existing MOU terminates on June 30, 2003 and is recommended to be extended one year at a cost of $70,000 while modifying it to focus on stations with typically less-compliant balance system equipment, adding conduct of new gasoline retention tests, and establishing expedited reporting schedules for stations with observed major defects. W & M is expected to conduct approximately 750 inspections during the annual term of the proposed contract. Committee members requested staff contact the other counties to inquire about their interest in participating in similar MOU agreements. Staff committed to do so. - Rule 109 – Recordkeeping of Volatile Organic Compound Emissions
Jill Whynot, Planning and Rules Manager gave a summary of proposed amendments to Rule 109, which requires recordkeeping for volatile organic compounds (VOCs). The rule change is a follow up from earlier Recordkeeping Task Force activities and will further streamline recordkeeping requirements for facilities with less than 4 tons per year total VOCs. Super-compliant materials such as UV/EB coatings (less than 0.06 pounds VOC per pound of solid material) will be required to keep annual records instead of monthly records. Additional definitions and test methods have been proposed to support this change. U.S. EPA and CARB have indicated support for this proposal. This item is being set for hearing in April for a May public hearing. Some technical questions were asked at the end of the meeting during public comments. Staff will call the requester with the related information. - Rule 1401 – New Source Review of Toxic Air Contaminants and Report on Potential Impacts to Rule 1402
Jill Whynot, Planning and Rules Manager gave a summary of proposed amendments to Rule 1401, New Source Review of Toxic Air Contaminants. When OEHHA updates risk factors, staff brings rule changes to reflect the new or revised information. In addition, staff reports on any anticipated changes for facilities subject to Rule 1402, which relates to risk reduction from existing facilities. The current rule proposal incorporates a new cancer risk value for MTBE. Staff is also proposing a limited exemption so gasoline stations will not calculate the contribution of MTBE in permitting because this chemical will be phased out of gasoline by the end of this year. MTBE can also be present in contaminated soil. The control equipment currently used for soil remediation is effective on MTBE so no additional impacts are expected. This item is being set for hearing in April, for a May public hearing - Rule 1105.1 – Reduction of PM10 and Ammonia Emissions from Fluid Catalytic Cracking Units
Larry Bowen, Planning and Rules Manager presented this item. Proposed Rule 1105.1 is a new rule implementing the last PM10 control measure in the 1997 AQMP. It applies to units at six refineries in the AQMD. The rule establishes PM10 and ammonia emission standards and is expected to reduce filterable particulate emissions by 0.5 tons per day and condensable particulates an additional 1.5 tons per day at a cost of $3,000 per ton reduced. At the last Stationary Source Committee Meeting it was indicated that although there have been extensive discussion and agreement on a number of issues between the staff and industry, there were still issues where agreement had not yet been reached, specifically related to long-term compliance with standards and cost effectiveness. - Membership Roster for AQMP Advisory Group, and Membership Roster and Goals & Objectives for AQMP Scientific, Technical, and Modeling Peer Review Advisory Group
This item was carried over to the April meeting. - Status Report on Draft 2003 AQMP
This item was presented earlier at the Mobile Source Committee; therefore the committee members waived the presentation. - Reg. III – Fees
Larry Bowen, Planning and Rules Manager, presented this item. Regulation III establishes the fee rates and requirements for the AQMD and funds about two-thirds of AQMD annual budget. Generally, fees are adjusted concurrently with the annual budget approval by the Governing Board. State law authorizes the AQMD to collect fees and also sets limitations on that fee authority. Staff is proposing amendments to Regulation III, some of which have a fiscal impact and others that will have little or no fiscal impact.
Staff is continuing to work with industry to try to resolve the remaining issues. To address the long-term compliance issue staff has added additional flexibility into the rule provided any excess emissions are mitigated. Mitigation would be by a set fee paid to the AQMD to be used to acquire equivalent emission reductions. Staff is also working cooperatively with the WSPA contractor to see if the difference between staff and the industry in the estimated implementation cost for this rule can be resolved. The contractor believes his report will be completed and submitted just prior to the May 2 public hearing. There was extensive committee discussion regarding the timing of the public hearing.
The major change is the adjustment of the fee rates commensurate with the change in the California Consumer Price Index for 2002, of 3%. Other proposed amendments that will have some impact on revenue include: requiring that all delinquent fees at a facility be paid before any new applications (including change of ownership) can be accepted for that facility; and establishment of a modest ammonia emission fee. U.S. EPA has identified ammonia as a toxic air contaminant and the AQMD is required to track and report ammonia emissions. The fee is to recover costs for these activities and as required by state law, will be implemented over two years.
Other amendments with little or no fiscal impact include: clarifying and updating the language for the Hearing Board fee rule, a minor increase in expedited permit processing and CEQA fees to recover actual costs, Executive Officer discretion to reinstate erroneously cancelled permits and waive permit fees for poultry disposal operations required as a result of the Governor’s declared state of emergency because of the outbreak of Exotic Newcastle Disease, a fee for the conversion of ERCs to short-term ERCs and insertion of the Offset Budget fees into Rule 301 as directed by the Board.
The staff proposal has and will continue to be presented to a number of Board Committees and advisory groups as well as the public prior to being considered at the adoption hearing of the AQMD FY 2003-04 Budget on May 2, 2003.
WRITTEN REPORTS
All written reports were acknowledged by the Committee.
The meeting was adjourned at 11:35 a.m.
March 28, 2003 Committee Agenda (without its attachments)
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