BOARD MEETING DATE: April 7, 2006
AGENDA NO. 29

PROPOSAL:

Amend Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities

SYNOPSIS:

The proposed amendments to Rule 1178 clarify that other devices with control efficiencies equivalent to slotted fabric membrane covers are allowed for floating roof drain covers, and clarify specifications for mechanical shoe seals for internal floating roof tanks. These proposed amendments do not affect air quality or emission limitations.

COMMITTEE:

Stationary Source Committee, February 24, 2006

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the Notice of Exemption (NOE) for Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities; 
2. Amending Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Rule 1178 applies to any above-ground stationary tank with a capacity of 75,000 liters (19,815 gallons) or greater used for the storage of organic liquids with a true vapor pressure greater than 5 mm Hg (0.1 psi), located at petroleum facilities emitting in excess of 20 tons of VOC per year. Rule 1178 was adopted December  2001 and was designed to further reduce VOC emissions from larger storage tanks operated by petroleum facilities by establishing additional control requirements and specifications to those included in Rule 463. One of the requirements is the use of slotted fabric membranes  that cover  at least 90 percent of the area of an emergency drain located on a floating roof. The rule also contains similar requirements for mechanical shoe primary seals for both internal and external floating roof tanks.

Proposed Amendments to Rule 1178

Staff proposes to allow the use of devices with equivalent emissions control efficiency to slotted membrane fabric covers for floating roof emergency drains and  to incorporate  separate minimum specifications for mechanical shoe primary seals used in internal floating roof tanks.   During the notice period one  comment was received about the definition of a mechanical shoe primary seal which was modified as a result by adding the word “VOC-impervious” in addition to “coated.”   Another comment received was that the Compliance Report form included as Attachment A to the rule has erroneously included reporting the H2S content requirement for crude oil storage tanks. Rule 1178 has no requirement to report or limit H2S content in crude oil. Therefore, staff is recommending the Compliance Report form be updated to reflect this. A third comment was received that it was not clear that tanks subject to Phase II are required to complete the installation of a dome by no later than January 1, 2010. Language has been revised to clarify this. Finally, the proposal has been amended to be consistent with the American Petroleum Institute (API) Guideline for the minimum distances mechanical shoe primary seals are to extend above the liquid surface and into the liquid for internal floating roof tanks. These clarifications do not significantly change the meaning of the proposed amended rule.

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 and 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

There is no cost as a result of this amendment and therefore, a socioeconomic impact assessment is not required.

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 1178  does not affect air quality or emission limitations and the amendments add clarity.

Resource Impacts

No additional AQMD resources will be required to implement this amendment.

Attachments (EXE 975 KB)

A. Summary of Proposal
B. Rule Development Process
C. Key Contacts List
D. Resolution
E. Proposed Amended Rule
F. Staff Report
G. Notice of Exemption
 

ATTACHMENT A – SUMARY OF PROPOSAL

ATTACHMENT B

RULE DEVELOPMENT PROCESS

ATTACHMENT C

KEY CONTACTS LIST

Affected Facilities

Others

Western States Petroleum Association
Western Independent Refiners Association
HMT Inc.
TARSCO
Matrix Services

RESOLUTION NO. 2006-xx

A Resolution of the South Coast Air Quality Management District Governing Board (Governing Board) certifying the Notice of Exemption for Proposed Amended Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities.

A Resolution of the Governing Board amending Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities.

WHEREAS, the South Coast Air Quality Management District Governing Board finds and determines that the proposed amendments to Rule 1178 are considered a "project" pursuant to the California Environmental Quality Act (CEQA); however, South Coast Air Quality Management District staff reviewed the proposed project and determined with certainty that the proposed amendments are exempt from the requirements of CEQA pursuant to CEQA Guidelines §15061(b)(3); and

WHEREAS, the AQMD Governing Board has determined that the Proposed Amended Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities, has no socioeconomic impact; and

WHEREAS, the AQMD Governing Board has determined that a need exists to adopt the Proposed Amended Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities, to allow devices with equivalent control efficiency, clarify definitions and specifications and remove obsolete language; and

WHEREAS, the AQMD Governing Board of the South Coast Air Quality Management District obtains its authority to adopt, amend, or repeal rules and regulations from Sections  39002, 40000, 40001, 40440, 40702 and 40725 through 40728 of the California Health and Safety Code; and

WHEREAS, the AQMD Governing Board has determined that Proposed Amended Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities, as proposed to be amended is written or displayed so that its meaning can be easily understood by the persons directly affected by it; and

WHEREAS, the AQMD Governing Board has determined that Proposed Amended Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities, as proposed to be amended is in harmony with, and not in conflict with or contradictory to, existing federal or state statutes, court decisions, or regulations; and

WHEREAS, the AQMD Governing Board has determined that Proposed Amended Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities, as proposed to be amended does not impose the same requirements as any existing state or federal regulation and the proposed amended rule is necessary and proper to execute the powers and duties granted to, and imposed upon, the AQMD; and

WHEREAS, the AQMD Governing Board has determined that Proposed Amended Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities, as proposed to be amended, references the following statutes which the AQMD hereby implements, interprets or makes specific:   Health and Safety Code Sections  39002 (Local and State Agency Responsibilities) and 40000 (Local/State Responsibilities), 40702 (Adoption of Rules and Regulations); and

WHEREAS, the AQMD Governing Board has determined that there is a problem that Proposed Amended Rule 1178 - Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities will alleviate, i.e., these amendments clarify requirements necessary for implementation and enforcement of the rule; and

WHEREAS, a public hearing has been properly noticed in accordance with the provisions of Health and Safety Code Section 40725; and

WHEREAS, the Governing Board finds and determines, taking into consideration the factors in §(d)(4)(D) of the Governing Board Procedures, that the modifications adopted which have been made to PAR 1178 – Further Reductions from Storage Tanks at Petroleum Facilities, since notice of public hearing was published do not significantly change the meaning of the proposed rule within the meaning of Health and Safety Code §40726 and would not constitute significant new information requiring recirculation of the Notice of Exemption document pursuant to CEQA Guidelines § 15088.5; and

WHEREAS, the AQMD Governing Board has held a public hearing in accordance with all provisions of law; and

WHEREAS, the AQMD Governing Board specifies the manager of Proposed Amended Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities, as the custodian of the documents or other materials which constitute the record of proceedings upon which the adoption of this proposed amendment is based, which are located at the South Coast Air Quality Management District, 21865 Copley Drive, Diamond Bar, California; and

WHEREAS, the AQMD Governing Board has determined that Proposed Amended Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities, should be amended for the reasons contained in the Final Staff Report;

NOW, THEREFORE, BE IT RESOLVED, that the South Coast Air Quality Management District Board does hereby certify the Notice of Exemption for Rule 1178, as proposed to be amended, is completed in compliance with CEQA Guidelines §15002(k)(1) - Three Step Process and §15061(b)(3) – Review for Exemption (General Rule Exemption). This information was presented to the Governing Board, whose members reviewed, considered, and approved the information therein prior to acting on the proposed amendments, and

BE IT FURTHER RESOLVED, that the AQMD Governing Board does hereby amend, pursuant to the authority granted by law, Proposed Amended Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities, as set forth in the attached and incorporated herein by reference.

______________________                                       _______________________
Date                                                                        Clerk of the District Boards