BOARD MEETING DATE: March 7, 2003
AGENDA NO. 28
Stationary Source Committee
SYNOPSIS:
The Stationary Source Committee met Friday, February 28, 2003. Following is a summary of that meeting. The next meeting will be March 28, 2003, at 10:30 a.m., in Conference Room CC8.
RECOMMENDED ACTION:
Receive and file.
Leonard Paulitz, Acting Chair
Stationary Source Committee
Attendance
The meeting began at 11:00 a.m. Present were Leonard Paulitz, acting Chair; and members Jane Carney and Fred Aguiar. Absent were Ron Loveridge, Chair and member William Craycraft.
INFORMATIONAL ITEMS
- Local Mountain Area Fire Hazard Abatement
Lee Lockie, Director of Area Sources and Michael Dietrick of the United States Department of Agriculture (U.S.DA), presented this item. Excessive drought and bark beetle infestation have killed millions of pine trees in large tracts of forest land in San Bernardino and Riverside counties. Fire emergencies have been declared by the two counties. The Governor may also declare a state of emergency due to the potential for cataclysmic wildfires. [Gov. Davis did so declare by end of day.] Upon authorization by the Governing Board, the District can cooperate in mitigating the fire hazard by issuing open burn permits for the use of up to eight air curtain destructors. Properly operated, this combustion equipment can rapidly and safely dispose of the thousands of tons of wood waste to be created by the felling of dead and dying trees. - Program Review for Pilot Credit Generation Rules
Vicki White, Air Quality Specialist, Science & Technology Advancement, presented this item. The pilot credit generation rules were adopted by the Board in 2001 to generate NOx emission reductions for use in the RECLAIM program. This program review, which is a requirement of the pilot credit generation rules, includes information regarding credit generation and use as well as other implementation issues. - Annual RECLAIM Audit Report for CY 2001
Pang Mueller, Engineering and Compliance Manager, presented information regarding Compliance Year 2001 Annual Audit of the RECLAIM program. There were 330 RECLAIM facilities in Compliance Year 2001. These facilities emitted, in aggregate, 15,721 tons of NOx and 5, 017 tons of SOx. Programmatically, NOx emissions exceeded allocations by 28 tons which was less than one quarter of one percent of the overall emissions. The exceedence was due to high emissions from power plants during the first half of the compliance year. However, NOx emissions during Compliance Year 2001 were 5000 tons below the previous compliance year emissions level. SOx emissions were well below the allocation level of 5,557 tons. - Proposed Amended Rule 1469 and Proposed Rule 1426 – Metal Plating
Jill Whynot, Planning and Rules Manager presented this item. Metal plating was selected as part of the Chairman’s Initiatives for a pilot negotiated rulemaking process approved by the Board in February 2002. A facilitator was hired to lead negotiations, and a working group and several subcommittees were established. Proposed Rule 1426 will be implemented in a two-step process. The first step of this rule is to gather data on existing facilities and to assess their emission impacts. The second step, if warranted, will be to determine emission reductions requirements. - Annual Report for 2002 on AB 2588 Air Toxics "Hot Spots" Program
Dr. Elaine Chang, Deputy Executive Officer, Planning, Rule Development & Area Sources, presented a summary of accomplishments in 2002 under the AB 2588 program. The program has completed the review of health risk assessments submitted and is current in terms of identifying new AB 2588 facilities and updating existing facilities with the latest air toxics inventory. In 2003, staff will begin addressing public notification for industry-wide source categories, such as gas stations and dry cleaners. Based on a recent experience at an AB 2588 public notification meeting, staff will modify the current procedure to conduct all future AB 2588 public meetings by AQMD. The current practice is to have companies conduct the meetings with AQMD staff present to assist in answering questions. The proposed change is intended to better serve the surrounding communities where non-AB 2588 issues are also prominent. There would be little impact on what the AB 2588 companies have to perform to meet the public notification requirements. - 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 implements the last remaining stationary source measure in the PM10 Plan and applies to six refineries in the AQMD. The year-long rulemaking process has involved the participation of an Industry/AQMD working group and the Refinery Ad Hoc Committee of the Board. The proposed rule establishes emission limits for filterable particulate and ammonia. Data collection for condensable particulate as well as testing, monitoring, recordkeeping and reporting requirements are included in the rule. As proposed, the rule will achieve a 0.5 ton per day (TPD) emission reduction of filterable PM10 and the additional benefit of reducing condensable PM10 emissions by 1.5 TPD. The cost effectiveness is approximately $3,000 per ton reduced of total PM10 and $10,700 per ton if only the filterable emission reductions are considered. There is still not agreement on all issues with the industry, including the cost effectiveness and the ability to meet the emission limits. Staff is recommending a May 2, 2003 public hearing.
This process may take up to two years to dispose of all the trees. This increased burning activity does create the potential for public nuisance with impacts on sensitive persons and thus, staff is proposing measures to mitigate emissions, protect the most sensitive persons in the affected communities and to communicate with the local communities in advance of and during the burning activity. Also, availability of non-combustion alternatives was discussed, but it was explained that all feasible alternatives such as sending the lumber to the mills will be exercised but there still is a need to dispose of the remaining wood waste which is not marketable.
No emission reductions were generated under the pilot credit generation rules prior to 2002. In 2002, approximately 245 tons of NOx emission reductions were generated from the repowering of marine vessels pursuant to Rule 1631, and with a 10% discount for the benefit of the environment, a total of 220 tons of NOx RTCs were available in 2002. The NOx RTCs generated in 2002 included marine vessels funded under the Mitigation Fee Program and a private party application. The Mitigation Fee Program currently includes a total of 49 marine vessels (including the eight marine vessels approved by the Board in February 2003). Thirteen of these marine vessels were repowered and generated about 135 tons of NOx RTCs in 2002. The remaining marine vessels are expected to be repowered and will generate additional NOx emission reductions starting in 2003.
The private party project for the repowering of the Islander Express generated approximately 85 tons of NOx RTCs in 2002. This marine vessel is projected to generate additional NOx emission reductions of approximately 77 tons per year for the next three years, of which 10% will be retired to the benefit of the environment. The second marine vessel under the private party application is projected to generate approximately 31 tons per year in 2003, and each year for the next two years. These credits belong to the private party.
No emission reductions have been generated under the other pilot credit generation rules thus far; however, the Board recently approved funding for additional projects for the Mitigation Fee Program involving the replacement of diesel-fueled agricultural pumps with electric motors under Rule 2507, and the replacement of Class 7/8 diesel-fueled trucks with CNG fueled refuse haulers under Rule 1612.1. These projects will generate additional NOx emission reductions for the Mitigation Fee Program, and the AQMD Rule 118 Executive Order #01-03 and Governor’s Executive Order D-40-01 programs. This presentation covered the credits generated under the pilot credit generation rules. The status of NOx credits needed to offset power plan emissions was presented by Pang Mueller as part of the annual RECLAIM audit report.
The prices of RTCs traded in Calendar Year 2002, returned to the level below backstop ($15,000). Prices for NOx RTCs traded in 2002 for Compliance Years 2001, 2002, and 2010 were $3,866/ton, $5,110/ton, and $8,839/ton, respectively. Prices for SOx RTCs traded in 2002 for Compliance Years 2001, 2002, and 2010 were $8,428/ton, $8,986/ton, and $7,166/ton, respectively.
There are approximately 130 chrome plating facilities in the AQMD’s jurisdiction subject to Rule 1469, and half are estimated to have a cancer risk of over 25 in a million, with ~40 with cancer risks of potentially greater than 100 in a million. Some key elements of Rule 1469 include additional reductions (by use of fume suppressants, or upgrade or add-on controls), and developing tougher standards if near sensitive receptors, existing residences, or an existing school. The projected rule impacts 3 facilities within 100 meters of a school and 29 facilities within 25 meters of sensitive receptor or residence. Twenty-five facilities will add or upgrade controls, and 40 facilities will begin use of certified fume suppressants.
The adoption resolution consists of outreach, training, and implementation assistance. AQMD will certify fume suppressants and will report back to the Stationary Source Committee in 9 months. Staff will also report back to the Stationary Source Committee in 15 months regarding rule compliance and implementation. AQMD will work to raise awareness relative to informed local land use decisions in the future. A technical assessment will be performed in 3 years regarding facilities with cancer risks over 25 in a million after use of controls and fume suppressants. The negotiation process was successful and the parties involved have indicated their acceptance of the draft language which will now proceed through the public review process. There will be a Set Hearing in March, a Public Hearing in May, and a Report to the Board in June regarding the negotiated rulemaking process.
Ron Wilkniss of the Western States Petroleum Association ( WSPA) expressed concerns with proposed Rule 1105.1 regarding vendor guarantees for achievability of the proposed limits and cost data. These issues will be discussed further at the Refinery Ad Hoc Committee Meeting scheduled for the afternoon of February 28, 2003.
WRITTEN REPORTS
All written reports were acknowledged by the Committee.
The meeting was adjourned at 12:15 p.m.
February 28, 2003 Committee Agenda (without its attachments)
///