BOARD MEETING DATE: May 7, 2004
AGENDA NO. 32

Amend Regulations IX – Standards of Performance for New Stationary Sources and X – National Emission Standards for Hazardous Air Pollutants

SYNOPSIS:

Local air districts are authorized by EPA to implement federal standards set in 40 Code of Federal Regulations (CFR) Part 60, Standards of Performance for New Stationary Sources and Part 61, National Emission Standards for Hazardous Air Pollutants (NESHAPs). Periodic amendments to Regulations IX and X incorporate new or amended standards by reference. Two actions regarding NSPS and four actions regarding NESHAP are proposed for incorporation into Regulations IX and X, respectively. The NESHAP changes include clarifications and corrections, administrative changes, and changes to test methods and monitoring. The NSPS changes include clarifications and corrections, and changes to monitoring. Affected industries include benzene waste operations, and hospital/medical/infectious waste incinerators.

COMMITTEE:

Stationary Source, March 26, 2004, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the Notice of Exemption for Proposed Amended Regulations IX – Standards of Performance for New Stationary Sources and X – National Emission Standards for Hazardous Air Pollutants; and
    
2. Amending Regulations IX – Standards of Performance for New Stationary Sources, and X – National Emission Standards for Hazardous Air Pollutants.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

EPA periodically promulgates NSPS and NESHAPs. NSPS govern the operation of all new, modified, or reconstructed sources of air pollution identified in Part 60 of the Code of Federal Regulations (CFR). NESHAPs govern the operation of new and existing sources specifically identified in Part 61 of the CFR that emit substances that have been designated as hazardous air pollutants pursuant to Section 112 of the Clean Air Act (CAA) Amendments. In order to administer and enforce NSPS and NESHAPs at the local level, AQMD’s Governing Board initially adopted by reference the NSPS federal standards as AQMD Regulation IX, and the NESHAPs federal standards as Regulation X, on December 3, 1976. The Board has since amended these regulations to incorporate new or amended standards as necessary. In 1997, EPA delegated and redelegated its authority for specific Sections of 40 CFR Parts 60 and 61, as listed in the April 23, 1997 Federal Register, Volume 62, No. 78, 19679 – 19682. Regulation IX was last amended April 5, 2002 and Regulation X was last amended May 11, 2001.

In a letter received August 6, 2002, EPA informed AQMD that NSPS Subparts BBBB – Emission Guidelines for Existing Small Municipal Waste Combustion Units, and DDDD – Emission Guidelines Existing Sources: Commercial and Industrial Solid Waste Incineration Units, are not delegated under CAA Sec. 111 (c). These were mistakenly included in the May 11, 2001 amendments and should be removed.

The 1990 Amendments to the federal Clean Air Act called for EPA to establish maximum achievable control technology (MACT) standards for new and existing major sources of hazardous air pollutants, starting within two years of enactment and finishing within ten years. The MACT standards are published in the CFR as Part 63. EPA delegated authority for the implementation and enforcement of Part 63 to the AQMD on February 27, 1997. However, the AQMD has not established a separate regulation to encompass those standards but implements them for sources covered by the Part 70 program (Title V).

Proposal

Updates to reflect federal actions for 2002 and 2003 are combined in this board package. For 2002, one action amended Subpart A – General Provisions with a correction to a monitoring requirement and the other amended the NESHAP for benzene waste operations the latter action was partially withdrawn in February 2003 with final action not coming until December 2003 for that amendment. A total of two NSPS actions for which the AQMD has delegation of authority have been promulgated by EPA during the past two years. These are proposed for incorporation by reference into Regulation IX. A total of four NESHAP actions (two subparts) for which AQMD has delegation of authority have been promulgated by EPA during the past two years. These are proposed for incorporation by reference into Regulation X. This Board letter and its attachments serve as the staff report for proposed amendments to Regulations IX and X.

All new sources of air pollution and all modified or reconstructed sources of air pollution are required to comply with the more stringent of the applicable federal, state, and local standards, criteria, and requirements set forth in Regulation IX or other AQMD rules. The same is true for new and modified sources identified by source category for control in the NESHAPs. These standards are in effect and enforceable by AQMD pursuant to § 301, in conjunction with Sections 110, 111(c)(1), and 112(d)(1) of the federal Clean Air Act, regardless of whether AQMD incorporates them by reference into Regulations IX and X. Nonetheless, adoption of NSPS and NESHAPs by reference into Regulations IX and X helps affected sources by providing a single point of reference for determining which federal and local requirements apply to their specific operations.

The nature of these actions includes correction of errors, monitoring exemptions and alternative compliance requirements, amendments to definitions, removal of requirements that had unintended consequences, and extension of compliance times.

Public Workshops

EPA held public workshops with public comment periods as part of its rule development process. No public workshops were held by AQMD since the proposed amendments incorporate by reference existing federal requirements and therefore, do not significantly affect air quality or emissions limitations.

Regulations IX and X Proposal

Tables 1 and 2 list NSPS and NESHAPs, respectively, currently proposed for incorporation by reference into AQMD Regulations IX and X.¹ Changes are listed in chronological order. For a description of the actions, see Attachments A and B.

¹ Due to the bulk of these materials, the complete text of Federal Register Notices announcing final action on NSPS and NESHAP proposed for incorporation by reference into Regulations IX and X have been distributed to Board members only. Anyone wishing to view this material may do so by contacting AQMD’s Public Information Center at (909) 396-3600.
 

Table 2. NESHAPS Proposed for Incorporation into Regulation X

CEQA and Socioeconomic Impacts

Staff has reviewed the proposed amendments to Regulation IX - Standards of Performance for New Stationary Sources, and X – National Emission Standards for Hazardous Air Pollutants pursuant to CEQA Guidelines §15002(k)(1) - Three Step Process, and has determined that the proposed amendments are exempt from CEQA pursuant to CEQA Guidelines § 15268 - Ministerial Projects. AQMD proposes to incorporate by reference federal NSPS requirements into Regulation IX and NESHAP requirements into Regulation X. Because AQMD exercises no discretion with regard to the proposed project, it is considered to be ministerially exempt. Furthermore, the proposed amendments are categorically exempt because they are considered actions to protect or enhance the environment pursuant to CEQA Guidelines § 15308- Class 8 Categorical Exemption. If approved by the Governing Board, a Notice of Exemption (NOE) will be prepared for the proposed project pursuant to CEQA Guidelines §15062 – Notice of Exemption, and mailed to the county clerks of Los Angeles, Orange, Riverside, and San Bernardino counties.

No socioeconomic impact assessment was performed for the proposed amendments, because the proposed amendments are verbatim adoption of current NSPS and NESHAP requirements and thus, do not impose new requirements in addition to the federal regulations.

AQMP and Legal Mandates

These federal requirements are not included in the AQMP. Section 301, in conjunction with Sections 110, 111(c)(1), and 112(l), of the federal Clean Air Act authorize EPA to delegate authority to implement and enforce standards and related compliance periods for new, modified, or reconstructed sources of air pollution set forth in 40 CFR Part 60, and for new and existing sources of air pollution set forth in 40 CFR Part 61, to local air districts. Adoption of new and amended NSPS into AQMD Regulation IX and NESHAP into Regulation X by reference formally recognizes AQMD’s authority to assist in the implementation and enforcement of these federal regulations at the local level.

Implementation Plan

The proposed amendments do not materially affect the structure or function of existing programs associated with the implementation of Regulation IX - Standards of Performance for New Stationary Sources, and Regulation X – National Emission Standards for Hazardous Air Pollutants, or any other AQMD rules. Staff is available to assist facilities affected by the proposed amendments.

Resource Impacts

Current AQMD resources are sufficient to implement and enforce proposed Regulations IX and X amendments.

Attachments

1. Summary of Changes to Regulation IX
2. Summary of Changes to Regulation X
3. Resolution
4. Draft Rule Language to Regulation IX
5. Draft Rule Language to Regulation X
6. Federal Register Notices of Final Action on NSPS and NESHAP
7. Notice of Exemption

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