BOARD MEETING DATE: July 7, 2006
AGENDA NO. 37

PROPOSAL:

Adopt SCAQMD 8-Hour Ozone Reasonably Available Control Technology State Implementation Plan

SYNOPSIS:

South Coast AQMD is classified as Severe 17 and the Coachella Valley located in Riverside County is classified as serious non-attainment area with respect to the 8-hour ozone National Ambient Air Quality Standards (NAAQS).  The U.S. EPA Final Rule to Implement the 8-Hour Ozone NAAQS (70 FR 71612, November 29, 2005) requires that areas classified as moderate or higher for the 8-hour ozone NAAQS must develop and submit a demonstration that their current air pollution rules fulfill the 8-hour ozone Reasonably Available Control Technology requirements.  A staff report has been developed to fulfill this obligation.

COMMITTEE:

Stationary Source, June 23, 2006, Reviewed

RECOMMENDED ACTIONS:

1. Approve the attached Resolution certifying that the SCAQMD’s current air pollution rules and regulations fulfill the 8-hour ozone Reasonably Available Control Technology (RACT) requirements, and adopting the RACT SIP revision;

2. Certify the Notice of Exemption (NOE) for the proposed project; and

3. Direct staff to forward the Staff Report - SCAQMD 8-Hour Ozone Reasonably Available Control Technology (RACT) State Implementation Plan (SIP) to CARB for review and submission to U.S. EPA.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On April 30, 2004 (69 FR 23951), the U.S. EPA published a final rule that addressed the classifications for the 8-hour ozone National Ambient Air Quality Standards (NAAQS), the revocation of the 1-hour ozone NAAQS, and the attainment dates.  The South Coast Air Basin (Basin) is classified as Severe 17 category for the 8-hour NAAQS and the Coachella Valley located in Riverside County is classified as Serious.  In addition to revising the SIP to include additional control measures to address the 8-hour ozone NAAQS, and conducting attainment demonstrations through regional modeling, a Reasonably Available Control Technology (RACT) SIP Submittal is required to be submitted to U.S. EPA to demonstrate that AQMD’s current rules fulfill the 8-hour ozone RACT for all Control Technique Guidelines (CTG) source categories.  The analysis must assure that RACT is met, either through 1) a certification that previously required RACT controls for 1-hour ozone also represent RACT for 8-hour ozone, or 2) through a new RACT determination.  The RACT SIP Submittal must be submitted by CARB to U.S. EPA by September 15, 2006, and therefore AQMD staff must submit the analysis to CARB for review by July 15, 2006.

Public Process

A 45-day notice was published before holding the public hearing on the RACT submittal.  A draft staff report was available for public review on June 2, 2006 in preparation for a public workshop on June 15, 2006.  No public comments were received at the workshop or subsequent comment period.  In addition, AQMD staff consulted CARB and U.S. EPA regarding the draft submission and staff has responded and resolved all comments received from CARB and the U.S. EPA on the draft staff report prior to the Board Hearing.

AQMD Staff’s Proposal

AQMD staff adhered closely to the guidance provided by U.S. EPA Region IX in reviewing AQMD rules/regulations for RACT.  As a result of this review, AQMD can make the following findings:

1. All AQMD rules approved by CARB and U.S. EPA to implement the 1-hour ozone SIP fulfill RACT for the 8-hour ozone NAAQS.
    
2. All CTG sources in the Basin are subject to SIP-approved rules in Regulation IV, IX, X, XI, XIII, and/or XX and therefore meet RACT requirements.
    
3. All major non-CTG sources in the Basin are subject to SIP-approved rules in Regulation IV and/or Regulation XI, XIII, and/or XX and therefore meet RACT requirements.
    
4. There are currently no Regulation XI source-specific rules for agricultural pesticide application (ACT category), no RACT determination can be made.  Agricultural pesticide application is under the jurisdiction of the California Department of Pesticide Regulation.  
    
5. There are 1,311 major facilities (≥ 10 tons per year of VOC or NOx) in the Basin with 17,607 permits.  Approximately 750 of these major source facilities are Title V facilities which have federal enforceable permits with clearly identified SIP-approved rules, and as such meet RACT.

California Environmental Quality Act (CEQA)

Staff has reviewed the proposed project pursuant to CEQA Guidelines §15002(k)(1) - Three Step Process, and has determined that the proposed project is exempt from CEQA pursuant to CEQA Guidelines §15061(b)(3) – Review for Exemption.  The proposed project is covered by the general rule that CEQA applies only to projects which may have a significant effect on the environment.  Staff has reviewed the proposed project and has determined that the submittal of the RACT SIP report to the U.S. EPA is primarily an administrative process.  Therefore, it can be seen with certainty that there is no possibility that the proposed project will have a significant adverse impact on air quality or other environmental areas and, therefore, the proposed project is exempt from CEQA.  If approved by the Board, a Notice of Exemption (NOE) will be prepared pursuant to CEQA Guidelines §15062 – Notice of Exemption, and will be mailed to the county clerks of Los Angeles, Orange, Riverside, and San Bernardino counties.

Socioeconomic Analysis

Socioeconomic impact assessment is not necessary since there is no change to the previously submitted SIP and AQMP rules and regulations.

Resource Impacts

There will be no potential resource impacts.

Attachments (EXE 443kb)
Resolution
Staff Report

Resolution 06-__

A Resolution of the South Coast Air Quality Management District (SCQAMD) Board certifying that the SCAQMD’s current air pollution rules and regulations fulfill the 8-hour ozone Reasonably Available Control Technology (RACT) requirements, and adopting the RACT SIP revision.

A Resolution of the SCAQMD Board certifying the Notice of Exemption for the SCAQMD 8-Hour Ozone RACT SIP revision and submittal.

A Resolution directing staff to forward the Staff Report - SCAQMD 8-Hour Ozone Reasonably Available Control Technology (RACT) State Implementation Plan (SIP) to the California Air Resources Board (CARB) for review and submission to the United States Environmental Protection Agency (U.S. EPA).

WHEREAS, Federal Register Volume 70, Citation 71612, November 29, 2005, requires the State (or essentially local air districts) to submit a RACT SIP analysis to U.S. EPA by September 15, 2006: and

WHEREAS, the U.S. EPA has developed guidance and a list of Control Technique Guidelines (CTG) and Alternative Control Techniques (ACT) to aid local air districts in developing the RACT SIP Submittal in a consistent and effective manner; and

WHEREAS, based on the Clean Air Act (CAA) §172 (c)(1) and 182, and the California Health and Safety Code (H& SC) §§ 40460(a), 40913, and 40440(a), the SCAQMD is required to adopt an Air Quality Management Plan (AQMP), rules and regulations containing reasonably available control measures (RACM) and RACT for both oxides of nitrogen (NOx) and volatile organic compounds (VOC) in order to lead the Basin into attainment with the federal and state ozone National Ambient Air Quality Standards (NAAQS) as expeditiously as practicable; and

WHEREAS, for the majority of the stationary and area source categories, the SCAQMD has been identified as having the most stringent air quality plan, rules and regulations in California; and

WHEREAS, in order to approve a rule and regulation into the SIP, CARB and U.S. EPA have to consider if the rule and regulation meets, at a minimum, the “presumptive” RACT level.  Because of that, any rules and regulations approved by CARB and U.S. EPA to implement the 1-hour ozone SIP should be considered as meeting RACT at the time of approval.  Therefore, any categories for which U.S. EPA has not published any additional CTG/ATC after the approval date, and for which no more stringent rule has since been adopted, should be considered as meeting RACT for the 8-hour ozone NAAQS.  In addition, the District routinely reviews its rules at least every three years for air quality management update, most recently in 2003, and proposes rule amendments whenever any information comes to its attention that indicates that a rule can be made more stringent.  The fact that these two review processes have not revealed any potential for making these rules more stringent indicates that the existing rules satify current RACT for the 8-hour ozone NAAQS; and

WHEREAS, where a CTG/ACT became available after the U.S. EPA rule approval date, SCAQMD staff evaluated the rule and determined if the level of control provided in the new CTG/ACT was more stringent than the adopted rule.  There were a total of 7 rules in this category, and staff’s analysis showed that all 7 rules met RACT; and

WHEREAS, where the regulation approved by U.S. EPA is amended after the approval date, SCAQMD staff evaluated the amendments to ensure that the amendment does not result in a relaxation of control.  There were a total of 12 rules in this category and staff’s analysis showed that the amendments do not relax the level of control previously approved by U.S. EPA.

WHEREAS, staff has analyzed additional 2 rules that have not yet been approved by U.S. EPA to justify that the regulations fulfilled RACT, and staff’s analysis showed that these rules met RACT.

WHEREAS, substantiated by the analyses above, staff concluded that all CTG sources are subject to rules in Regulations IV, IX, X, XI, XIII, and/or XX which meet RACT requirements; and

WHEREAS, substantiated by the analyses above, staff concluded that all major non-CTG sources in the Basin are subject to rules in Regulations IV, XI, XIII, and/or XX that meet RACT requirements; and

WHEREAS, since there are currently no Regulation XI source-specific rules for agricultural pesticide applications, no RACT determination can be made.  However, agricultural pesticide application is regulated by the State Department of Pesticide Regulation, and is not under the control of the SCAQMD; and

WHEREAS, there are approximately 1,311 major facilities (≥ 10 tons per year of VOC or NOx) in the Basin with approximately 17,607 permits.  Approximately 750 of these major source facilities are Title V facilities which have federal enforceable permits with clearly identified SIP-approved rules, all of which have been demonstrated to meet RACT, as discussed above; and

WHEREAS, the SCAQMD Governing Board finds and determines that the SCAQMD 8-Hour Ozone RACT SIP report and submittal is 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 project is exempt from the requirements of CEQA pursuant to CEQA Guidelines §15061(b)(3); and

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

NOW, THEREFORE, BE IT RESOLVED, that the Board certifies that the AQMD’s current air pollution rules and regulations fulfill the 8-hour ozone Reasonably Available Control Technology (RACT) requirements.

BE IT FURTHER RESOLVED, that the South Coast Air Quality Management District Board does hereby certify the Notice of Exemption for the proposed project, 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 project.

BE IT FURTHER RESOLVED, that the Board directs staff to forward the report, SCAQMD 8-Hour Ozone Reasonably Available Control Technology (RACT) State Implementation Plan (SIP) to CARB for review and submission to U.S. EPA.

DATE: ______________                                                                                                   

                                                                                            Clerk of the Board