BOARD MEETING DATE: September 8, 2006
AGENDA NO. 40

Amend Regulation IX – Standards of Performance for New Stationary Sources

SYNOPSIS:

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.

COMMITTEE:

Stationary Source, June 23, 2006, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the Notice of Exemption for Proposed Amended Regulation IX – Standards of Performance for New Stationary Sources; and
2. Amending Regulation IX – Standards of Performance for New Stationary Sources.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

U.S. EPA periodically promulgates NSPS and NESHAPs.  NSPS govern the operation of all new, modified, or reconstructed sources of air pollution identified in Part 60 of the Code of Federal Regulations (CFR).  NESHAPs govern the operation of new and existing sources specifically identified in Part 61 of the CFR that emit substances that have been designated as hazardous air pollutants pursuant to Section 112 of the Clean Air Act (CAA) Amendments.  In order to administer and enforce NSPS and NESHAPs at the local level, AQMD’s Board initially adopted by reference the NSPS federal standards as Regulation IX, and the NESHAP federal standards as Regulation X, on December 3, 1976.  The Board has since amended these regulations to incorporate new or amended standards as necessary.  In 1997, U.S. EPA delegated and redelegated its authority for specific Sections of 40 CFR Parts 60 and 61, as listed in the April 23, 1997 Federal Register, Volume 62, No. 78, 19679 – 19682.  Regulations IX and Regulation X were last amended December 2, 2005.

The 1990 Amendments to the federal CAA called for U.S. EPA to establish maximum achievable control technology (MACT) standards for new and existing major sources of hazardous air pollutants, starting within two years of enactment and finishing within ten years.  The MACT standards are published in the CFR as Part 63.  U.S. EPA delegated authority for the implementation and enforcement of Part 63 to the AQMD on February 27, 1997.  However, the AQMD has not established a separate regulation to encompass those standards but implements them for sources covered by the Part 70 program (Title V).

Proposal

Updates to reflect federal actions for 2005 are included in this Board package.  Five NSPS actions for which the AQMD has delegation of authority were promulgated by U.S. EPA during 2005 and are proposed for incorporation by reference into Regulation IX.  This Board letter and its attachments serve as the staff report for proposed amendments to Regulation IX.

All new sources of air pollution and all modified or reconstructed sources of air pollution are required to comply with the more stringent of the applicable federal, state, and local standards, criteria, and requirements set forth in Regulation IX or other AQMD rules.  The same is true for new and modified sources identified by source category for control in the NESHAPs.  These standards are in effect and enforceable by AQMD pursuant to §301, in conjunction with §§110, 111(c)(1), and 112(d)(1) of the federal CAA, regardless of whether AQMD incorporates them by reference into Regulations IX and X.  Nonetheless, adoption of NSPS and NESHAPs by reference into Regulations IX and X helps affected sources by providing a single point of reference for determining which federal and local requirements apply to their specific operations.

The nature of these actions 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.

Public Workshops

U.S. EPA held public workshops with public comment periods as part of its rule development process.  No public workshops were held by AQMD since the proposed amendments incorporate by reference existing federal requirements and therefore, do not significantly affect air quality or emissions limitations.

Regulations IX

Table 1 lists NSPS currently proposed for incorporation by reference into AQMD
Regulation IX.[1]  Changes are listed in chronological order.  For a description of the actions, please see Attachments A.

Table 1.  NSPS Proposed for Incorporation into Regulation IX

CEQA and Socioeconomic Impacts

Staff has reviewed the proposed amendments to Regulation IX – Standards of Performance for New Stationary Sources, pursuant to CEQA Guidelines §15002(k)(1) – Three Step Process, and CEQA Guidelines § 15061 – Review for Exemption and has determined that the proposed amendments are exempt from CEQA pursuant to CEQA Guidelines § 15268 – Ministerial Projects.  AQMD proposes to incorporate by reference federal NSPS requirements into Regulation IX.  Because AQMD exercises no discretion with regard to the proposed project, it is considered to be ministerially exempt.  Furthermore, the proposed amendments are categorically exempt because they are considered actions to protect or enhance the environment pursuant to CEQA Guidelines § 15308 – Class 8 Categorical Exemption.  A Notice of Exemption (NOE) has been prepared and included as an attachment for the proposed project pursuant to CEQA Guidelines §15062 – Notice of Exemption, and if approved by the Governing Board, will be mailed to the county clerks of Los Angeles, Orange, Riverside, and San Bernardino counties.

Socioeconomic Impacts

No socioeconomic impact assessment was performed for the proposed amendments, because the proposed amendments are verbatim adoption of current NSPS requirements and thus, do not impose new requirements in addition to the federal regulations.

AQMP and Legal Mandates

These federal requirements are not included in the AQMP.  The federal Clean Air Act §301, in conjunction with §§110, and 111(c)(1), authorize U.S. EPA to delegate authority to implement and enforce standards and related compliance periods for new, modified, or reconstructed sources of air pollution set forth in 40 CFR Part 60.  Adoption of new and amended NSPS into AQMD Regulation IX by reference formally recognizes AQMD’s authority to assist in the implementation and enforcement of these federal regulations at the local level.

Implementation Plan

The proposed amendments do not materially affect the structure or function of existing programs associated with the implementation of Regulation IX - Standards of Performance for New Stationary Sources or any other AQMD rules.  Staff is available to assist facilities affected by the proposed amendments.

Resource Impacts

Current AQMD resources are sufficient to implement and enforce proposed Regulations IX amendments.

Attachments (EXE 288kb)

[1] Due to the bulk of these materials, the complete text of Federal Register Notices announcing final action on NSPS  proposed for incorporation by reference into Regulation IX have been distributed to Board members only.  Anyone wishing to view this material may do so by contacting AQMD’s Public Information Center at (909) 396-3600.