BOARD MEETING DATE: October 7, 2005
AGENDA NO. 23

Stationary Source Committee

SYNOPSIS:

The Stationary Source Committee met Friday, September 23, 2005. Following is a summary of that meeting. The next meeting will be October 28, at 10:30 a.m., in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file.

Ronald O. Loveridge, Chair
Stationary Source Committee

Attendance

The meeting began at 10:40 a.m. Present were Ronald Loveridge, Committee Chair (left at 11:20), Jane Carney (Acting Chair upon Ronald Loveridge’s departure) and Dennis Yates. Absent was Gary Ovitt.

INFORMATIONAL ITEMS

1. Rule 1148.1 Implementation Report
   Mohsen Nazemi, Assistant Deputy Executive Officer, Engineering & Compliance, presented a status report on Rule 1148.1 – Oil and Gas Production Wells, regarding implementation and related emissions data. The Resolution for the adopted rule directed staff to report to the Stationary Source Committee on rule implementation and any new related emissions data, inspection frequency and other information, as well as to recommend any rule changes, as appropriate, by September 2005. Mohsen indicated that since the adoption of Rule 1148.1, AQMD staff has inspected 100% of oil and gas production facilities within 100 meters of sensitive receptors, and 100% of major facilities in the RECLAIM program, as well as over one third of the smaller facilities. These inspections have resulted in the issuance of two Notices of Violations (none to facilities within 100 meters of sensitive receptors) and one Notice to Comply. Self-inspection records show problems were corrected within the time limit allowed by the rule and AQMD inspections confirm high compliance rates. Since the adoption of Rule 1148.1, implementation findings have shown that the rule is successfully reducing VOCs from oil wells. No amendments to the rule are proposed at this time.
    
2. Rule 1156 – PM10 Emission Reductions from Cement Manufacturing Operations
   Lee Lockie, Director of Area Sources, presented a brief summary of Proposed Rule 1156, including the key elements of the regulation and its emissions and economic impacts. After noting that all key issues appear to have been resolved, she indicated that staff will be proposing that the Board approve, at its October 2005 Board meeting, that a public hearing be scheduled for November 2005.
    
   During the public comment period on this proposal, Howard Berman, representing California Portland Cement Company, concurred with staff that remaining concerns have been addressed and expressed appreciation for staff efforts and Board oversight.
    
3. Rule 1107 – Coating of Metal Parts and Products
   Larry Bowen, Planning and Rules Manager, presented this item. Rule 1107 is being amended to set new VOC limits for extreme high gloss coatings and prefabricated architectural coatings, both effective July 1, 2007. In addition, several of the transfer efficiency exemptions are to be deleted since High Volume Low Pressure (HVLP) application technology is available. The proposal partially implements AQMP Control Measure CTS-10 and achieves 0.8 tons per day of VOC emission reductions at a cost effectiveness of $6,900 per ton reduced. Curtis Coleman, on behalf of Sherwin Williams, commented on the prohibition of sale and manufacture provisions and appreciates staff’s willingness to remove it from this proposal for further study.
    
4. Rule 1118 – Emissions from Refinery Flares
   Larry Bowen, Planning and Rules Manager, presented this item. Rule 1118 is to be amended to eliminate flaring at refineries except for emergencies, startups, shutdowns, turnarounds and essential operational needs and to minimize flaring for those events. In addition, the proposal requires cause analysis for flaring events and sets a refinery-wide declining annual SOX emissions cap. If a refinery exceeds the cap they will pay emissions mitigation fees, submit a flare management plan for approval by the Executive Officer and receive NOVs if there are multiple exceedances. The rule also has enhanced monitoring, recordkeeping, and reporting requirements and the data substitution procedure has been standardized. Both industry and the community have issues with the proposal and staff is continuing to work with all the parties to see if resolution can be reached before the November 2005 hearing. Ken Hudson, on behalf of WSPA, is looking forward to meeting with staff and members of the Refinery Ad Hoc Committee to work together on resolving outstanding issues.
    
5. Rule 1401.1 – New Source Review of Toxic Air Contaminants for New and Relocated Facilities Near Schools
   Susan Nakamura, Planning and Rules Manager, gave an update on Proposed Rule 1401.1 – Requirements for New and Relocated Facilities Near Schools. The presentation included a summary of the requirements of the rule, expected impacts, and a discussion of three remaining key issues. The three issues include:

• An alternative proposal by environmental and community representatives to establish a 1,000 foot buffer zone around schools inside which no toxic-emitting equipment requiring an AQMD permit would be allowed,
• The issue of the 500 foot distance criteria in the rule vs. the 300 feet originally proposed in the Cumulative Impacts White Paper, and
• The effects of a new school being constructed in the midst of a long-planning project.

Committee members commented that using groundbreaking as the criteria for when a school is considered under the rule might be too late. Suggested alternatives were when the NOP was issued by the school district or when the school was included in a city’s specific plan. Similarly, a facility only needs to consider schools when its NOP is released to address concerns for long-planning projects. Public comments by Bill LaMarr representing Small Business Alliance included a request for another Working Group meeting prior to the October 7, 2005 Public Hearing, concerns over long lead time projects for large business, and that the proposed rule does nothing to address exposure of school children to mobile sources of emissions.

6. Status Update and Summary of Proposed Rule 410 – Odors from Transfer Stations and Material Recovery
   Susan Nakamura, Planning and Rules Manager, presented initial concepts for Proposed Rule 410 – Odors from Transfer Stations and Material Recovery Facilities (MRFs). Due to time constraints the staff presentation was cut short to provide sufficient time to hear comments from the public. Committee Member Carney asked staff to return to the October Stationary Source Committee to complete the presentation.
    
   Rosalie Mulé, CIWMB Board Member for industry representation, stated that since the CIWMB staff has not gotten all the data requested since April this year, they are not sure the current staff proposal or another approach is more appropriate to address the odor issues. They need to review the raw data on odor complaints. Ms. Mulé requested a rule delay until they can review the data and determine if a rule is appropriate (Dr. Wallerstein indicated that staff already recommended a delay till January 2006). There was discussion on data transmittal between the two agency staff members. Committee Member Carney stated as a matter of policy AQMD staff will cooperate with CIWMB staff to share data during the rule development. She also requested staff to report back at the next Committee meeting regarding an overview of each agency’s areas of responsibility.
    
   Kelly Astor, General Counsel for four industry groups, commented that transfer stations and MRFs provide an essential public service. They are already regulated by CIWMB and are concerned that additional regulations would put them out of business which will result in greater truck traffic and therefore air pollution. Mr. Astor indicated that his industry would like to have the same data CIWMB received and the proposed rule should examine the socioeconomic and air quality consequences of closing down the industry.
    
   Committee Member Yates responded to the commentor that AQMD received public comments at various town hall meetings on odor issues and was asked by the public to do something to protect their health. He would be pleased if CIWMB can adequately address community concerns on odors and respond to public complaints.

WRITTEN REPORTS

All written reports were acknowledged by the Committee.

The meeting was adjourned at 12:10 p.m.
 

Attachments (DOC* 54kb)

September 23, 2005 Committee Agenda (without its attachments)

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