BOARD MEETING DATE: April 2, 2004
AGENDA NO. 38

Adopt Proposed Amended Rules:
403 – Fugitive Dust
1186 – PM10 Emissions from Paved and Unpaved Roads and Livestock Operations
403.1 – Supplemental Fugitive Dust Control Requirements for Coachella Valley Sources

SYNOPSIS:

In response to PM10 SIP requirements, new fugitive dust control measures were included in the 2003 AQMP and the 2002 Coachella Valley PM10 SIP (CVSIP) to increase the stringency of current Best Available Control Measures (BACM) rules and rule amendments adopted in 1997. The new measures were based on analysis of subsequent BACM implementation in other areas and in response to comments by U.S. EPA. The proposed amendments will implement 2003 AQMP control measure BCM-07 and the AQMD rulemaking commitment of the 2002 CVSIP. These amendments incrementally reduce fugitive dust PM10 emissions from previously-controlled fugitive dust sources including construction (earth-movement) activities, roadways, and Coachella Valley agricultural sources and backstop reductions achieved by local Coachella Valley programs. The amendments will also enhance the clarity and enforceability of the fugitive dust rules.

COMMITTEE:

Stationary Source, January 23, 2004, February 27, 2004, and March 26, 2004, Reviewed

RECOMMENDED ACTIONS:

Adopt the attached resolution:

1. Certifying the Final Environmental Assessment (EA) for Proposed Amended Rules 403, 1186 and 403.1; and
    
2. Adopting Proposed Amended Rules 403, 1186, 403.1; and
    
3. Approving the Rule 403 and Rule 403.1 Implementation Handbook and the Rule 403 Coachella Valley Agricultural Handbook.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The South Coast Air Quality Management District (AQMD) includes two air basins that exceed State and federal ambient air quality standards for PM10 (fine particulate matter less than 10 microns in diameter): the South Coast Air Basin and the Coachella Valley portion of the Salton Sea Air Basin. Studies indicate that approximately one-third of the South Coast Air Basin’s ambient PM10 concentrations, and over ninety percent of Coachella Valley portion of the Salton Sea Air Basin’s ambient PM10 levels are a result of soil dust entrainment, commonly referred to as fugitive dust. In response to the elevated PM10 levels, the 2003 Air Quality Management Plan (AQMP) included control measure BCM-07 (Further Emission Reductions from Fugitive Dust Sources) and the 2002 Coachella Valley PM10 Plan (2002 CVSIP) included control measures CV BCM-01 (Further Control of Emissions from Construction/Earth-Movement Activities), CV BCM-04 (Paved Road Dust), and CV BCM-05 (Control of Emissions from Agricultural Activities). These control measures are proposed to be implemented through amendments to existing AQMD Rules 403, 1186, and 403.1. Adoption of the Rule amendments will further reduce fugitive dust and the corresponding PM10 emissions as part of a comprehensive strategy to achieve State and federal air quality standards by the mandated attainment dates.

Proposal

Proposed Amended Rule (PAR) 403 increases the number of construction projects subject to additional requirements for large operations (i.e., notifications, Table 2 and 3 control actions, dust control contact signage, recordkeeping, etc.). Beginning January 1, 2005, PAR 403 also requires sites greater than five acres to install a track-out control device (four options provided) and beginning January 1, 2005, identifies conservation practices for Coachella Valley crop producers seeking a Rule 403 exemption.

PAR 1186 extends post-event street cleaning and routine sweeping requirements to Coachella Valley, backstopping the Valley’s Clean Streets Management program, and implements the Rule’s existing contingency provisions that require new or widened roads to have improved road shoulders beginning January 1, 2006.

PAR 403.1 backstops the existing Coachella Valley dust control ordinances and requires sources not subject to local jurisdiction ordinances to submit dust control plans to the AQMD for review and approval.

Based on feedback from industry and air agencies PAR 403, 1186, and 403.1 also include revisions that are intended to improve the clarity and enforceability of the fugitive dust rules. Compliance enhancements will better ensure both new and previously-credited emission reductions.

Emission Reduction and Cost-Effectiveness

The 2003 AQMP estimated PM10 emissions from fugitive dust sources in the Basin at approximately 204 tons per day and the 2002 CVSIP estimated PM10 emissions from Coachella Valley fugitive dust sources at approximately 29 tons per day. Together, PAR 403, 1186, and 403.1 are estimated to reduce emissions by approximately 1.7 tons per day by 2006. Overall cost-effectiveness estimates of the PAR 403 requirements are $2,800 per ton for Coachella Valley agricultural provisions and $4,100 per ton for construction activities. For PAR 1186 and 403.1 the cost-effectiveness estimates are $3,500 and $2,100 per ton, respectively. The amendments also backstop 2.2 tons per day of reductions currently achieved by implementation of local Coachella Valley programs and ordinances.

California Environmental Quality Act (CEQA)

The proposed amendments to Rules 403, 403.1 and 1186 are considered a "project" as defined by the California Environmental Quality Act (CEQA), and the AQMD is the designated lead agency. Pursuant to the CEQA Guidelines and AQMD Rule 110, the AQMD has prepared an Environmental Assessment (EA) evaluating potential significant adverse environmental impacts associated with implementing the proposed amendments to these rules. The Draft EA, which was made available for a 30-day public review period from January 29, 2004 to February 27, 2004, concluded that Proposed Amended Rules 403, 403.1, and 1186 would not have any significant adverse effect on the environment. The Final EA, which includes responses to comments on the draft document, is included as part of the attached package for the public hearing on the proposed amendments.

Socioeconomic Analysis

The proposed amendments to Rule 403 could affect an additional 100 construction projects per year. These projects belong to the industry of general and heavy construction [SIC (Standard Industrial Classification) 15 and 16 or NAICS (North America Industrial Classification System) 233 and 234]. The proposed amendments to Rule 403 would also affect Coachella Valley crop producers (SIC 0161 or NAICS 115112). All these crop producers are located in Riverside County. The proposed amendments to Rule 1186 would affect local governments (SIC 91-97 or NAICS 92). The proposed amendments to Rule 403.1 would affect construction activities (SIC 15 and 16 or NAICS 233 and 234) and local flood control agencies (SIC 91-97 or NAICS 92) in the Coachella Valley. Approximately 30 additional projects could be brought within the scope of the proposed amendments in Riverside County.

The total annual costs of the proposed amendments to Rules 403, 1186, and 403.1 are estimated at $1,178,500, $879,983, and $104,800, respectively, or $1.97 million as a whole, on average from 2004 to 2015. Based on the above assumptions, the compliance costs of the proposed amendments to Rules 403, 1186, and 403.1 and application of the AQMD’s regional economic model, it is estimated that an average of 27 jobs could be created annually.

Public Process

Approximately 2,700 public workshop notices were mailed to potentially affected sources and the notice of public workshop was published in each county within AQMD’s jurisdiction boundaries. Two public workshops were held: one on January 15 2004 at the AQMD offices in Diamond Bar and one on January 21, 2004 at the Coachella Valley Association of Governments offices in Palm Desert. A subsequent mailing was also conducted to approximately 120 sources in the AQMD permit system database to ensure all potentially affected sources and facilities were provided the opportunity to comment. In addition to these workshops, staff has also individually met with affected industries and associations representing affected sources (e.g., Building Industry Association, Construction Industry Air Quality Industry Association, Southern California Rock Products Association, the Los Angeles County Sanitation Districts, and the Metropolitan Water District of Southern California).

Resource Impacts

It is anticipated that there will be a workload increase due to AQMD staff processing additional large operation notifications. However, as mentioned in the Final Staff Report, the large operation notifications have been streamlined to the extent possible and the requirement to annually renew such notifications have been removed from permanent stationary sources such as cement or aggregate facilities. These refinements were made to minimize potential impacts to industry and AQMD staff resources and in response to public comments. No additional AQMD resources are required to implement the PAR 403, 1186, 403.1 requirements.

Attachments (1,448 KB)

1. Summary of Proposed Amended Rules 403, 1186, 403.1
2. Rule Development Process
3. Key Contacts
4. Key Issues
5. Resolution
6. Proposed Amended Rule 403
7. Proposed Amended Rule 1186
8. Proposed Amended Rule 403.1
9. Proposed Rule 403 Implementation Handbook
10. Proposed Rule 403.1 Implementation Handbook
11. Proposed Rule 403 Coachella Valley Agricultural Handbook
12. Final Staff Report for Proposed Amended Rules 403, 1186, and 403.1
    Appendix A: PAR 403
    Appendix B: PAR 1186
    Appendix C: PAR 403.1
    Appendix D: Proposed Rule 403 Implementation Handbook
    Appendix E: Proposed Rule 403.1 Implementation Handbook
    Appendix F: Proposed Rule 403 Coachella Valley Agricultural Handbook
    Appendix G: Emissions Reductions / Cost-Effectiveness Analysis
13. Final Socioeconomic Report
14. Final Environmental Assessment

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