BOARD MEETING DATE: May 6, 2005
AGENDA NO. 38
Amend Rule 463 – Organic Liquid Storage
SYNOPSIS:
Proposed Amended Rule 463 will remove the hydrogen sulfide content standard for crude oil and the associated test method which has been shown to be non-reproducible. Reliable alternative test methods do not exist and the hydrogen sulfide in crude oil has been shown not to off-gas. Other proposed changes are administrative in nature and include: clarifying language, changes to the definitions, addition of test methods for true vapor pressure, reinstatement of language linking the rule and the addendum, and addition of rule consistency language to the Test Methods section.
COMMITTEE:
Stationary Source, March 25, 2005, Reviewed
RECOMMENDED ACTION:
Adopt the attached resolution:
- Certifying the Notice of Exemption (NOE) for Rule 463 – Organic Liquid Storage;
- Amending Rule 463 – Organic Liquid Storage.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Rule 463 applies to any above-ground stationary tank with a capacity of 75,000 liters or greater used for the storage of organic liquids, and any above-ground tanks with a capacity of between 950 liters and 75,000 liters used for storage of gasoline. Rule 463 was adopted August 1977 and subsequently amended three times. The 1984 amendments added a criterion for hydrogen sulfide content in crude oil contained in floating roof tanks. The last amendments to Rule 463 were made March 1994. That amendment restructured the rule, clarified rule language, streamlined compliance activities, and corrected rule deficiencies identified by the EPA and California Air Resources Board (CARB). Several deficiencies corrected pertained to references to, and lack of, specific test methods. SCAQMD Method 315 – 91 (Determination of Hydrogen Sulfide and Mercaptan in Oil and Sludge Samples) was added to determine compliance with the hydrogen sulfide concentration limit specified in paragraph (d)(4). The test method, SCAQMD Test Method 315 - 91, has since been determined to be unreliable and inaccurate for this purpose.
Rule 463 also includes an addendum specifying the correlation between storage temperature and the actual vapor pressure for various organic compounds. However, there is no corresponding rule language specifying how the information in the addendum should be implemented. In reviewing past rule amendment administrative records, it was found that the corresponding rule language was deleted in error when the rule was amended in March 1994.
Proposed Amendments to Rule 463
Staff proposes to remove the hydrogen sulfide standard and the associated test method, and add language related to compliance determination of the vapor pressure limits for various organic compounds.
Also, in an effort to improve rule language consistency, the definition of EXEMPT COMPOUND is modified to refer to Rule 102 – Definition of Terms, as in other District rules. Two new definitions have been added, one at the request of CARB and one associated with a test method. Furthermore, language has been added to the Test Method section reflecting the generic statement allowing for the use of alternative test methods that have been fully approved by the regulatory agencies overseeing test method development. This is standard language in many of the source-specific rules. In addition, the language inadvertently deleted from the rule in 1994 amendments pertaining to vapor pressure testing has been restored to the definitions, requirements, and test methods sections, and language linking the rule to the Addendum has been added.
Language has been added to the reporting and recordkeeping requirements to streamline the process and make it compatible with current District and industry practices. Associated with this change, three obsolete Appendices have been removed.
Key Issues
No key issues remain unresolved.
California Environmental Quality Act (CEQA)
Staff has reviewed the proposed project pursuant to California Environmental Quality Act (CEQA) Guidelines §15002(k)(1) and has concluded that the proposed project is administrative in nature because it merely involves the removal of a liquid hydrogen sulfide concentration standard and associated test method which does not adversely impact the environment. Therefore, it can be seen with certainty that there is no possibility that the proposed project may have a significant effect on the environment and, therefore, is exempt from CEQA pursuant to CEQA Guidelines §15061(b)(3). Upon approval of the proposed project, a notice of exemption will be prepared pursuant to CEQA Guidelines §15062 and sent for posting to the county clerks in the four counties within the jurisdiction of the SCAQMD.
Socioeconomic Assessment
No socioeconomic impact assessment was performed for the proposed amendments, since they will not significantly affect air quality or emissions limitations.
AQMP and Legal Mandates
The Air Pollution Control Permit Streamlining Act of 1992 (Article 1.5 of Chapter 4 of the Health and Safety Code), requires air pollution control districts to "institute new, efficient procedures which will assist businesses in complying with regional, state, and federal air quality laws in an expedited fashion, without reducing protection of public health and the environment." Proposed Amended Rule 463 has no air quality impact and the amendments add clarity and consistency with other District rules.
Resource Impacts
The proposed changes to Rule 463 are administrative in nature and thus no additional AQMD resources will be used to implement the rule.
Summary of Proposal
Key Issues and Responses
Rule Development Process
Key Contacts List
Resolution
Proposed Amended Rule
Staff Report
Notice of Exemption
/ / /