BOARD MEETING DATE: April 1, 2005
AGENDA NO. 21

Stationary Source Committee

SYNOPSIS:

The Stationary Source Committee met Friday, March 25, 2005. Following is a summary of that meeting. The next meeting will be April 22, at 10:30 a.m., in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file.

Attendance

The meeting began at 10:40a.m. Present were, Jane Carney, Acting Chair (left for agenda #7 due to possible conflict of interest) and Dennis Yates. Absent were Ronald Loveridge and Gary Ovitt.

INFORMATIONAL ITEMS

1. Execute Sole Source Contract with Los Angeles County Agricultural Commission Department of Weights and Measures for Gasoline Vapor Recovery Inspections and Testing
   Carol Coy, Deputy Executive Officer, Engineering and Compliance presented this recommendation to continue to contract with Los Angeles County Weights and Measures (W & M) to perform air quality screening inspections and nozzle testing at gasoline dispensing facilities during their regular inspections and promptly report their findings. This arrangement has been in existence for ten years and has worked well for both agencies. It has proven a cost effective means to target non-compliance. In 2004 W & M conducted 773 inspections (11,209 nozzles) and identified 598 major and 927 minor defects for AQMD inspector follow-up at a cost of $69,570. During this County Partnership, staff has seen a marked improvement in compliance (from less than 80% to over 94%). The contract is recommended to be continued at the current $70,000 amount. Board member Carney inquired about expanding the program to the other counties. Ms. Coy reported that two of the three counties had expressed interest in the past and that staff would initiate new inquiries and report back to the Committee.
    
2. Annual Report for AB2588 – Toxic Hot Spots
   Jill Whynot, Planning & Rules Manager, gave an update on the annual report for AB2588, the Air Toxics Hot Spots Program. State law requires a public hearing on the annual report. This report includes background information on AB2588 and Rule 1402, reports progress made in the last two years, lists projected activities for 2005 and includes two appendices, which list the facilities with approved HRAs and provides information on rules adopted by AQMD that reduce toxic air contaminants.
    
   Approximately 300 HRAs have been reviewed over the program history, with 98% of the facilities ending up with risks less than 10 in a million and 97% of the facilities having non-cancer hazard indexes less than 1, through voluntary actions or risk reduction plans. 18 of 20 risk plans have been fully implemented.
    
   Progress in 2003 and 2004 included: maintained no HRA backlog, prioritization of more than 600 facilities, initiated the HRA process for 47 facilities, created an AB2588 website, updated inventories, supported CHAPIS, and developed retail gasoline station data. For 2005, the following activities are planned: to prioritize 300 facility toxic inventories, review and approve HRAs for 47 facilities, seek Board approval for industry-wide notification procedures for gas stations and dry cleaners, web-based display of criteria and toxic emissions, support ARB’s CHAPIS program, develop a work plan to phase in diesel sources, and provide assistance for permit evaluations, CEQA projects and MATES III.
    
   The report is on the agenda for the April Board meeting. The report will be distributed to county boards of supervisors, city council members and local health officers. It will also be included on the AQMD website.
    
3. Rule 1171 – Solvent Cleaning Operations
   Lee Lockie, Director of Area Sources presented a brief background and summary of the proposed amendments to Rule 1171, Solvent Cleaning Operations. She explained that the Governing Board adopted a major set of amendments to Rule 1171 in 1999 that set technology-forcing limits for certain specialized cleaning operations. It is the second stage of these amendments that will be considered by the Board at its May meeting.
    
   The scheduled VOC reductions for 2005 are significant because the limits will be reduced from between 500 to 900 grams per liter of VOC to between 25 to 100 grams per liter VOC, depending on the type of cleaning. She explained that a technology assessment was conducted by a set of consultants to identify and test low VOC cleaning materials to substitute for higher VOC materials in these cleaning processes. The major amendment being proposed addresses the need for extended field testing for 3 printing ink application processes. Based on a joint recommendation from the printing industry and one of the consultants, the Institute for Research and Technical Assistance (IRTA), staff is proposing a one year delay beyond the current July 1, 2005 compliance date for the 100 gram per liter VOC limit to allow time for further field testing of promising formulations and time for the industry to transition to the new compounds. Accompanying this proposal is an interim limit of 500 grams per liter VOC that would be effective on July 1, 2005. This interim limit will allow for VOC reductions of a little over 5 tons per day by using readily available formulations. Ms. Lockie explained that, based on the findings of the technology assessment, certain other cleaning applications are being proposed for permanent or extended exemptions. For cleaning the equipment used in the manufacture of electrical components, the application of coatings and adhesives and specialty flexographic printing ink application equipment, limits take effect on July 1, 2005. Staff is recommending that the current technology forcing limits of 100 g/l VOC not be changed and that they take effect as planned since adequate substitute low-VOC cleaning materials have been identified by the technology assessment.
    
4. Rule 463 – Organic Liquid Storage
   Larry Bowen, Planning and Rules Manager, presented this item. The proposed amendment removes the hydrogen sulfide standard for liquid crude oil and associated test method. The test method is neither accurate nor reproducible. The odor threshold of hydrogen sulfide is significantly below the health protective standard. It is expected that any significant emission would result in odor complaints and compliance could be handled through enforcement of Rule 402. To date there have been no odor complaints associated with liquid crude oil tanks. Other amendments are proposed for consistency with other rules and clarity.
    
5. RECLAIM
   Elaine Chang, Deputy Executive Officer, Planning and Rules, presented this item outlining the proposed amendments to RECLAIM for Public Hearing May 6, 2005. There are four parts to the proposed amendments which are administrative in nature. The first is a correction to Rule 2007 reinstating language which was inadvertently omitted during the January 2005 amendments that allows power producers to transfer RECLAIM trading credits (RTCs) amongst facilities under common ownership. The second is a clarification to the scope of emissions and offsets for new RECLAIM facilities subject to Rule 2005. The third is a proposed change to Rule 2005 which would allow new RECLAIM facilities the option to sell unused RTCs on a quarterly basis rather than the current annual basis. The fourth is another proposed change to Rule 2005 to clarify the RTCs that must be held by a facility filing for a change of ownership during the year of the change of ownership. This proposed change is consistent with the NOx reductions incorporated in RECLAIM with the January 2005 amendments. Comments were made that the rule language may not be clear that the inclusion of mobile source emissions from ships only applies to new facilities. Staff will work with the stakeholders to clarify the language as necessary.
    
6. Rule 461 – Gasoline Transfer and Dispensing
   Larry Bowen, Planning and Rules Manager, presented this item. The proposed amendments are primarily to implement the requirements of SB 700 by subjecting gasoline storage and dispensing operations at agricultural sources to the same requirements that apply to all other retail and non-retail gasoline storage and dispensing operations, including the requirement for a written permit. Other amendments are also proposed to improve enforceability and an exemption is proposed for the fueling of Tournament of Roses parade floats.

Committee Member Jane Carney left the meeting for agenda #7 due to a possible conflict of interest. Ms. Carrney announced that Inland Concrete Enterprises, Inc., Delilah Properties, Maruhachi Ceramics of American, Inc., and J.R. Pipeline are sources of income for her.

7. Rule 1157 Implementation Status Update
   Lee Lockie, Director of Area Sources, stated that staff has finished reviewing the extensive set of comments provided by a portion of the aggregate industry at the January, 2005 public hearing where PAR 1157 was adopted by the Board. She noted that the committee was aware that meetings between the staff and the industry were suspended due to the recent litigation.
    
   An industry spokesman, Mr. Malcom Weiss, stated that the industry wished to resume the talks as soon as possible.

WRITTEN REPORTS

All written reports were acknowledged by the Committee.

The meeting was adjourned at 11:35 a.m.

Attachments

March 25, 2005 Committee Agenda (without its attachments)

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