BOARD MEETING DATE: July 7, 2006
AGENDA NO. 2

PROPOSAL:

Set Public Hearings September 8, 2006 to Consider Amendments and/or Adoption to AQMD Rules and Regulations to:

1. Amend Rule 1302 – Definitions and Rule 1309.1 – Priority Reserve.  The proposed amendment to Rule 1302 clarifies the definition of essential public services and adds definitions for energy projects of regional significance, biosolids and biosolids processing facilities.  Proposed amendments to Rule 1309.1 will allow qualifying electric generating facilities, other energy-related projects of regional significance and non-public biosolids processing facilities to access the Priority Reserve for the purpose of procuring offset credits. Amendments also include adjustment of the offset credit price schedule and offset ratio for such credits. (Review: Stationary Source Committee, July 28, 2006)
    
2. Amend Regulation IX - Standards of Performance for New Stationary Sources.  U.S. EPA has authorized local air districts to implement federal standards set in 40 Code of Federal Regulations (CFR) Part 60, Standards of Performance for New Stationary Sources (NSPS), 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.  Five actions for NSPS are proposed for incorporation into Regulation IX.  There were no actions regarding NESHAPs, Part 61. The NSPS amendments include: adding alternative emissions monitoring requirements; corrections and definitions; and establishing a " cap-and-trade" program for mercury emissions from coal-fired electric utility steam generating units. (Review: Stationary Source Committee, June 23, 2006)
    
3. Adopt Proposed Rule 410 - Odors from Transfer Stations and Material Recovery Facilities.  Proposed Rule 410 establishes requirements for transfer stations and material recovery facilities (MRFs) handling municipal solid waste.  The purpose of the proposed rule is to provide a preventative approach to reduce odors from transfer stations and MRFs.  The proposed rule will apply to new, modified, and existing MRFs.  Under the proposed rule, affected facilities would be required to submit an Odor Management Plan.  The proposed rule will have an exemption option for submittal of the PR 410 Odor Management Plan if the facility has an Odor Management Plan approved by its Local Enforcement Agency that is incorporated in their solid waste permit.  (Review: Stationary Source Committee, September 23, 2005, and May 26, 2006)
    
4. Adopt Proposed Rule 1315 – New Source Review Tracking System.  Proposed Rule 1315 was developed to formalize AQMD’s accounting methodology for tracking credits to and debits from its federal internal NSR offset accounts and to demonstrate programmatic equivalency between AQMD’s NSR program and federal NSR requirements.  In addition, U.S. EPA has requested adoption of and AQMD staff has agreed to propose an NSR tracking rule to the Board for adoption as a necessary condition for U.S. EPA’s future approval of Rule 1309.2 – Offset Budget in the SIP.  (Review: Stationary Source Committee, July 28, 2006)

The complete text of the proposed amendments, staff reports, and other supporting documents will be available from the District’s Public Information Center, (909) 396-2550 and on the Internet (http://www.aqmd.gov/) on August 9, 2006.

RECOMMENDED ACTION:

Set Public Hearings September 8, 2006 to amend Rules 1302 and 1309.1 and Regulation IX, and adopt Proposed Rules 410 and 1315.

Barry R. Wallerstein, D.Env.
Executive Officer

Amend Rule 1302 – Definitions and Rule 1309.1 – Priority Reserve (EXE 305kb)

Amend Regulation IX - Standards of Performance for New Stationary Sources (EXE 78kb)

Adopt Proposed Rule 1315 – New Source Review Tracking System (EXE 216kb)