BOARD MEETING DATE: December 5, 2008
AGENDA NO. 21

REPORT:

Stationary Source Committee

SYNOPSIS:

The Stationary Source Committee met Friday, November 21, 2008. Following is a summary of that meeting. The next meeting will be January 23, at 10:30 a.m., in Conference Room CC8.

RECOMMENDED ACTIONS:

Receive and file.
 

Dennis Yates, Chair
Stationary Source Committee

Attendance

The meeting began at 10:35 a.m. Present were Dennis Yates, Dr. Joseph Lyou and Jane Carney. Absent were Ronald Loveridge, Gary Ovitt and Michael Cacciotti. Also, Ms. Carney excused herself from the meeting during item numbers three and five due to possible conflict of interest and did not return to the meeting until the end of item number four.
 

INFORMATIONAL ITEMS

1. Proposed Rule 314 – Fees for Architectural Coatings

Dr. Laki Tisopulos, Assistant Deputy Executive Officer, presented a status report on Rule 314 – Fees for Architectural Coatings, which was adopted in June 2008, including proposed amendments and highlights of recent enforcement efforts. The proposed amendment addresses follow-up issues, clarifying the applicability and reporting requirements sections of the rule to include architectural coatings sold through big box retailers, as well as adding a fee exemption for recycled coatings. During the last six months, that includes a two-week focused enforcement effort at the end of July, staff visited 198 sites distributed across AQMD. Staff identified non-compliant products in approximately 34 percent of the sites inspected. Dr. Lyou commented that the data supports the additional inspectors recommended in the initial staff proposal. A member of the public sought a clarification question on data, which was clarified by staff.
 

2. Rule 1143 – Reduction of VOC Emissions from Lacquer Thinners and Paint Thinners

Naveen Berry, Planning and Rules Manager, presented Proposed Rule 1143 to the Stationary Source Committee. The public commented on the need for a revised inventory, concerns about thinning and cleaning limits, cost effectiveness, rulemaking by CARB, and AQMD’s authority for regulating consumer products. Staff responded that the AQMD does have regulatory authority in the absence of a CARB rule for this category and that the current rulemaking is imperative to achieving timely VOC reductions from this category.
 

Committee Member Jane Carney excused herself from agenda item 3 citing possible conflict of interest. Fleetwood Aluminum Products, Modular Metal Fabricators, and Recat Inc. are sources of income for her and may be materially affected.

Naveen Berry, Planning & Rules Manager, gave the presentation explaining the goals, requirements, and major issues. In response to the issues, staff has bifurcated the limits and effective dates, as requested by industry. Additionally, staff plans to include resolution language indicating plans to continue efforts with industry to validate the test method and evaluate VOC limits for specialty uses, including those that fall under military specification. Two members from the audience provided support conditioned upon the District agreeing on resolution language to validate the test method per ASTM E691 and further assessment of light or thin oils. The members also expressed concern over VOC limits for military specified uses and recycled spindle oils. Based on comments received and recommendation from the committee, staff plans to include a resolution to work with industry on validating the test method and evaluate specialty applications prior to the effective dates of the stricter standards. Mohsen Nazemi, Deputy Executive Officer of Engineering & Compliance also distributed a letter from the Independent Lubricant Manufacturers Association indicating support for Rule 1144 provided the issues related to test methods and recycled/reformulated materials are addressed.
 

Agenda numbers 4 and 5 were taken in reverse order.
 

Committee Member Jane Carney excused herself from agenda item 5 citing possible conflict of interest. Maruhachi Ceramics of America, Inc., Homtomi America Inc., and Creel Printing are sources of income for her and may be materially affected.

Joe Cassmassi, Planning & Rules Manager provided an update on Proposed Rule 1147 outlining the modifications made to the proposed rule language that resulted from discussions with the rule Task Force during the October 28, 2008 Public Consultation Meeting and Task Force Meeting held on November 20, 2008.  The modifications to the rule included moving the proposed emissions limit for oven and equipment operating at low temperatures (< 800°F) from  20 ppm to 30 ppm, extending the time to install new equipment to help defer costs over a potential 5-year period, to clarify applicability and exemptions, and to propose an annual compliance program based on source testing a statistically derived random sample of the units.  The random compliance program costs would be shared by all facilities at a fee not to exceed $100 per year, thus offsetting the disruption and costs associated with source testing.  Staff also proposed to report back to Stationary Source Committee on the implementation of the rule with particular emphasis placed on heat treating and forging operations.  Mr. Anthony Endres expressed concern that the cost of rule  implementation may be underestimated but he was pleased that staff has committed to continue Task Force discussions on the proposed rule implementation beyond the Board Hearing. Dr. Joseph Lyou asked about potential dioxin and furan emissions from afterburners, vapor incinerators and soil remediation projects. Mr. Mohsen Nazemi indicated that AQMD addresses toxic emissions during the permitting process.
 

4. Rule 1156 – Further Reductions of Particulate Emissions from Cement Manufacturing Facilities

Jill Whynot, Director of Strategic Initiatives, gave an update on rule development efforts.  Ambient monitoring is continuing near the two cement facilities.  There has been an increase in chrome emission levels lately, occurring during Santa Ana winds.  This is under investigation, and may be seasonal in nature.  Ms. Whynot described modifications to the initial staff proposal which will result in the majority of the original emission reductions but at substantially lower costs.  There are still concerns from industry regarding the proposal, and discussions are in progress.  A Town Hall Meeting will be held in Rubidoux on December 3^rd in the evening to update the community.  The item will be set for hearing in January 2009 for a February public hearing.

A representative from California Portland Cement commented that staff’s revised proposal is much improved, but they have several concerns.  These include structural issues with hanging wind fencing on their barn, and concerns about the need for monitoring at their facility.  They will continue to work with staff.

Dr. Lyou asked for some clarifications, and also commented that the chrome level that would trigger enclosure (0.7 ng/m³, representing 100 in a million cancer risk) seemed high.  Staff responded that the chrome level which could trigger enclosure is for a relatively short time period and that the detection limit for this type of sample is ~0.2 ng/m3, which is close to background levels.  Mayor Yates inquired about the outreach and communication to community members, which is being done for the upcoming Town Hall Meeting.  Dr. Wallerstein told the committee members that staff is intensifying efforts to understand the spike in chrome levels, and will revisit the commitments made at the last Town Hall Meeting and report on progress.
 

6. Offsets Availability and Potential for Generation of Emissions Reduction Credits Through the Application of BACT

Dr. Joseph Lyou indicated that this item was put on the agenda as per his request and he has read the handouts that staff provided and at this time it is not necessary to discuss this item.
 

7. Work Plan for High-Efficiency Air Filtration Project

Dr. Philip Fine, Science & Technology Advancement Manager, presented the proposed work plan for implementation of the high-efficiency classroom filtration project, including the technologies to be used and their effectiveness, school assessment and selection criteria, and follow-up activities after installation.  Mayor Yates inquired as to whether the potential health benefits to the children will be tracked, and Dr. Wallerstein replied that other AQMD programs such as the Breath Mobile may be able to help in that area.  Dr. Lyou asked about which schools will be considered.  Dr. Fine replied that many potential schools will be in the West Long Beach area, with some additional schools in Wilmington and Carson to be considered
 

8. Status Update on CleanAir Logix LNG-Fired IC Engine and its Potential use at the Ports for Cold Ironing

Mohsen Nazemi, Deputy Executive Officer of Engineering & Compliance, gave a presentation regarding CleanAir Logix’s proposal to install multiple LNG fired engine generators at the Ports of Long Beach and Los Angeles. Staff has met and informed CleanAir Logix on several occasions that the proposed engines are not considered portable, require AQMD permits and must meet BACT and Rule 1110.2 requirements for stationary engines. CleanAir Logix has proposed a total of 24 engines to be used in 2009/10 time frame and requests $738,000 to develop a control system for these engines. CleanAir Logix has requested a mechanism for AQMD to seek interim relief from the Hearing Board.

AQMD has issued a Rule 441 research permit to CleanAir Logix on October 3, 2008 for one engine which was tested on October, 15, 2008 at the Tra Pac Terminal Berth 142 in Port of Los Angeles. Dr. Wallerstein commented that in his previous discussions with CleanAir Logix he recommended a much shorter time frame for compliance to meet the emissions limits for stationary engines. Dr. Wallerstein mentioned that theTra Pac EIR appeared to include grid power only and not engine driven electrical generation.

Bob Cross, Chief Executive officer of CleanAir Logix commented that he believes that these engines are portable because they can move to different berths and ports. Their system is unique because it can match variable frequencies and voltages of cargo ships.

Mr. Curtis Coleman, representing CleanAir Logix, commented that he disagrees with the District’s position about these engines not being considered portable. He stated that ship’s emissions are much higher than CleanAir Logix’s proposed engines and that grid power is currently unavailable. CleanAir Logix wants to develop SCR technology but doesn’t have the time or money and requests the District co fund the technology. He further stated that the ports have the worst air quality in the basin, and that SCR creates practical and technical problems for this particular application. He further states that this is an interim solution until grid power becomes available and that CleanAir Logix will install cleaner technology as soon as it’s practical. Dr. Wallerstein mentioned that SCR is currently available for these types of engines and that there are other alternative technologies as well, that includes the installation of a hood around the ship’s stack which controls the ship’s emissions by venting to an air pollution control system. Dr. Wallerstein stated that the initial indication of nine months or so to develop controls would seem more reasonable. Mayor Yates agreed.

Dana Marquil, CleanAir Logix, mentioned that Engine, Fuel, and Emissions Engineering, Inc. (EF & EE) is developing the control technology, but it will take time. Dr. Wallerstein restated that ships are not considered portable, that District NSR requires ship emission offsets and SCR is available and should have already been installed for this project. He offered to meet with CleanAir Logix to provide additional information, if the company wishes to discuss this further.
 

WRITTEN REPORTS

All written reports were acknowledged by the Committee.
 

Mayor Yates announced that the next Stationary Source Committee meeting will be on January 23, 2009.

The meeting was adjourned at 12:10 p.m.
 

Attachment (DOC, 69k)

November 21, 2008 Committee Agenda (without its attachments)