BOARD MEETING DATE: April 4, 2008
AGENDA NO. 31

PROPOSAL:

Amend Regulation IX – Standards of Performance for New Stationary Sources, and Regulation X – National Emission Standards for Hazardous Air Pollutants

SYNOPSIS:

U.S. EPA has authorized local air districts to directly 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 (NESHAP). Periodic amendments to Regulations IX and X incorporate new or amended standards by reference. Three actions for NSPS and one for NESHAP in 2007, are proposed for incorporation into Regulations IX and X, respectively. The NSPS actions cover: extensions of deadlines imposed for sources conducting performance tests; compliance alternatives and revised recordkeeping/reporting requirements for certain steam-generating units, and amendments to standards for equipment leaks of VOCs in the synthetic organic chemicals manufacturing industry and petroleum refineries. The NESHAP change involves extensions of deadlines for sources conducting performance tests. Affected industries include: all source categories covered by NSPS and NESHAP; synthetic organic chemicals manufacturing industry; petroleum refineries; and steam-generating units.

COMMITTEE:

Stationary Source, February 15, 2008, Discussed

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the Notice of Exemption for Proposed Amended Regulation IX – Standards of Performance for New Stationary Source; and Regulation X – National Emission Standards for Hazardous Air Pollutants; and
2. Amending Regulation IX – Standards of Performance for New Stationary Sources, and Regulation X – National Emission Standards for Hazardous Air Pollutants.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

U.S. EPA periodically promulgates NSPSs and NESHAPs. NSPSs 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 NSPSs 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, respectively as listed in the April 23, 1997 Federal Register, Volume 62, No. 78, 19679 – 19682. Regulation IX was last amended April 6, 2007 and Regulation X was lasted 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 directly implements them for covered sources through delegation of the Part 70 program (Title V).
 

Proposal

Updates to reflect federal actions for 2007 are included in this Board package. Three NSPS actions, parts of which the AQMD has delegation of authority, were promulgated by U.S. EPA during 2007 and are proposed for incorporation by reference into Regulation IX. One NESHAP action for which AQMD has delegation of authority was promulgated by U.S. EPA during 2007 and is proposed for incorporation by reference into Regulation X. This Board letter and its attachments serve as the staff report for proposed amendments to Regulations IX and X.

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 NESHAP. 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 NESHAP by reference into Regulations IX and X helps 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: extensions of deadlines for sources conducting performance tests; compliance alternatives and revised recordkeeping/reporting requirements for certain steam-generating units; and amendments to standards for equipment leaks of VOCs in the synthetic organic chemical manufacturing industry, and petroleum refineries.
 

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 staff since the proposed amendments incorporate by reference existing federal requirements and do not significantly affect air quality or emissions limitations.
 

Regulations IX and X Proposal

Tables 1 and 2 list NSPSs and NESHAPs, respectively, currently proposed for incorporation by reference into AQMD Regulations IX and X.¹ Changes are listed in chronological order. For a description of the actions, please see Attachments A and B.
 

Table 1. NSPS Proposed for Incorporation into Regulation IX

Table 2. NESHAPs Proposed for Incorporation into Regulation X

CEQA and Socioeconomic Impacts

Staff has reviewed the project, the proposed amendments to Regulation IX – Standards of Performance for New Stationary Sources, and Regulation X – National Emission Standards for Hazardous Air Pollutants, 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 and NESHAP requirements into Regulation X. 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.

No socioeconomic impact assessment was performed for the proposed amendments, which are verbatim adoption of federal NSPS and NESHAP requirements. The proposed amendments do not impose new requirements in addition to the federal regulations, and do not significantly affect air quality or emission limitations.
 

AQMP and Legal Mandates

These federal requirements are not included in the AQMP. Federal Clean Air Act §301, in conjunction with §§110, and 111(c)(1), and 112 (l), authorizes 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 and new and existing source of air pollution set forth in 40 CFR Part 61, to local air districts. Adoption of new and amended NSPSs into AQMD Regulation IX and NESHAPs into Regulation X, 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, and Regulation X – National Emission Standards for Hazardous Air Pollutants, or any other AQMD rules. Staff is available to assist facilities covered by the proposed amendments.
 

Resource Impacts

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

Attachments (exe  148 kb)

A. Summary of Changes to Regulation IX

B. Summary of Changes to Regulation X

C Resolution

D Draft Rule Language to Regulation IX

E. Draft Rule Language to Regulation X

F Notice of Exemption

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.