BOARD MEETING DATE: August 6, 2004
AGENDA NO. 2

Set Public Hearings September 3, 2004 to Consider Amendments and/or Adoption to AQMD Rules and Regulations to:

(A)	Amend Rule 1121 – Control of Nitrogen Oxides from Residential Type, Natural Gas-Fired Water Heaters: Rule 1121 was amended in December 1999 to lower the emission limits for water heaters. Manufacturers submitted an interim report relative to their progress in meeting the final emission limit and staff provided a summary of this information and recommendations at the January 9, 2004 Board Meeting. In order for equipment manufacturers to address other national regulatory requirements and technical and manufacturing issues, staff is proposing to delay implementation of the final rule limit one to three years depending upon the size and type of the water heater and to modify the mitigation fee program. This item also serves as a notice of intent to make infeasibility findings, as required in the settlement agreement for the 1999 AQMP amendment. (Review: Stationary Source Committee, July 23, 2004)
(B)	Amend Rule 2007 - Trading Requirements: The current version of Rule 2007 removes power producing facility trading restrictions after September 1, 2004. To address CARB concerns regarding reintroducing power plants to the trading market, this proposal contains a provision to lift the trading restrictions, contingent upon other RECLAIM rule amendments (currently scheduled for November 2004) that will decrease allocations to implement the 2003 AQMP Control Measure CMB-10 and to reflect best available retrofit control technology (BARCT). (Review: Stationary Source Committee, June 25, 2004 and July 23, 2004)
(C)	Informational Hearing on Proposed Amendments to RECLAIM: An informational hearing will be held in September on the proposed amendments to RECLAIM rules, highlighting BARCT determinations, cost-effectiveness, and options for achieving reductions from the program. (Review: Stationary Source Committee, July 23, 2004)

The complete text of the proposed amendments, staff reports and other supporting documents are available from the District’s Public Information Center, (909) 396-2550 and on the Internet (www.aqmd.gov).

RECOMMENDED ACTION:

Set Public Hearings September 3, 2004 to amend Rules 1121 and 2007, and an Informational Hearing September 3, 2004 on proposed amendments to RECLAIM.

Barry R. Wallerstein, D.Env.
Executive Officer

Amend Rule 1121 – Control of Nitrogen Oxides from Residential Type, Natural Gas-Fired Water Heaters

Amend Rule 2007 - Trading Requirements

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