BOARD MEETING DATE: February 1, 2008
AGENDA NO. 35

PROPOSAL:

Amend Rule 1401 – New Source Review of Toxic Air Contaminants and Adopt Proposed Rule 1472 – Requirements for Facilities with Multiple Stationary Emergency Standby Diesel-fueled Internal Combustion Engines

SYNOPSIS:

Rule 1401 establishes cancer and non-cancer risk requirements for new, relocated, or modified sources of toxic air contaminants. Proposed Amended Rule 140l would add diesel particulate emissions from internal combustion engines (diesel PM) to the list of toxic air contaminants (TACs) in the rule. The Rule 1401 TAC list is also used for Rule 1402 – Control of Toxic Air Contaminants from Existing Sources. Therefore, in addition to impacts to new sources, the staff report assesses impacts for existing facilities. Proposed Rule 1472 applies to facilities with three or more diesel emergency engines in close proximity to one another. The proposed rule reduces diesel PM emissions from these engine groups.

COMMITTEE:

Stationary Source, November 16, 2007 and January 18, 2008, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the Final Environmental Assessment (EA) for Proposed Amended Rule 1401 – New Source Review of Toxic Air Contaminants; Impact Assessment for Facilities Subject to Rule 1402 – Control of Toxic Air Contaminants from Existing Sources; and Proposed Rule 1472 – Requirements for Facilities with Multiple Stationary Emergency Standby Diesel-Fueled Internal Combustion Engines;
2. Amending Rule 1401 – New Source Review of Toxic Air Contaminants; and,
3. Adopting Rule 1472 – Requirements for Facilities with Multiple Stationary Emergency Standby Diesel-fueled Internal Combustion Engines.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Particulate matter emissions from diesel-fueled internal combustion engines (diesel PM) were identified as a toxic air contaminant (TAC) by CARB in 1998. Diesel PM emissions are produced when internal combustion engines burn diesel fuel. Diesel exhaust is a complex mixture of gases and fine particles, including many known or suspected cancer-causing substances. Diesel PM also has non-cancer health effects.

Rule 1401 – New Source Review for Toxic Air Contaminants was adopted by the Governing Board in June 1990. Rule 1401 establishes cancer and non-cancer risk requirements for new, relocated, or modified sources of TACs. The list of TACs in Rule 1401 is also used in Rule 1402 – Control of Toxic Air Contaminants from Existing Sources which implements the AB 2588 Air Toxics Hot Spots Program. Typically, compounds are added to the TAC list soon after OEHHA approves risk values. In this case, diesel PM from internal combustion engines was not added immediately in order to allow CARB time to develop a comprehensive statewide diesel PM policy, programs, permitting guidelines, and guidelines for the AB 2588 Air Toxics Hot Spots Program. Adding diesel PM will affect new and existing, emergency and prime stationary diesel engines. The greatest impact will be to existing emergency back-up engines as there are approximately 5,900 facilities representing 9,000 engines in the District.

Emergency back-up engines are currently regulated under Rule 1470 – Requirements for Stationary Diesel-Fueled Internal Combustion and Other Compression Ignition (CI) Engines limits their usage for testing and maintenance. Based on analysis of emergency engines, District staff has found that limiting the hours of operation under Rule 1470 addresses the potential health risk from facilities with one or two emergency diesel back-up engines. However, when three or more engines are grouped together and in close proximity to neighbors they can pose a significant health risk. Although Rule 1470 will address engines at approximately 90 percent of the facilities with emergency back-up engines there still remains approximately 10 percent of the facilities or 550 that further analysis and potential reduction of diesel emissions is needed to ensure consistency with Rule 1402. To streamline implementation of Rule 1402 to address diesel PM from emergency diesel back-up engines, the District staff is proposing Rule 1472.

Proposal

Proposed Amended Rule 1401

District staff is proposing to add diesel PM from internal combustion engines to the list of TACs in Table I of Rule 1401. Table I lists toxic air contaminants for which OEHHA has approved cancer and/or non-cancer risk values. The effective date for the risk values will be the date of adoption of Proposed Amended Rule 1401. Table 1 below shows the risk values and the corresponding screening value that will be added to the district’s “Risk Assessment Procedures for Rules 1401 and 212” upon adoption of the proposed rule. The screening value is a conservative estimate of the amount of diesel particulate emissions required to produce one in one million cancer risk. Although diesel PM has a chronic risk, the cancer risk far outweighs the chronic risk.

Table 1 – Risk Values

Proposed Rule 1472

Proposed Rule 1472, will address diesel PM exposure from facilities with multiple stationary emergency standby diesel-fueled engines. The proposed rule will be in addition to Rule 1470 which addresses single stationary diesel-fueled engines. The objective of Proposed Rule 1472 is to provide a streamlined approach to identifying those sources that exceed the Rule 1402 action risk level of 25 in a million and to establish specific requirements to reduce the health risk.

Proposed Rule 1472 applies to facilities with three or more stationary emergency standby diesel-fueled internal combustion engines rated at greater than 50 brake horsepower (BHP). Under the proposed rule facilities will be required to submit a compliance plan where they will calculate an Engine Group Index for any group of engines where there are three or more engines within 150 meters of each other. An initial notification is allowed in lieu of a compliance plan provided the facility can meet specific eligibility requirements. Dates for initial notification and compliance plan submittals are staggered and facilities with the largest number of engines are required to file first. Health facilities, colleges, universities, and government agencies are allowed additional time to file compliance plans.

Facilities which have any Engine Group Index that exceeds 1.0 are required to reduce diesel PM emissions for those engine groups. The proposed rule allows flexibility in that facilities have three compliance options:

• Reduce the Engine Group Index to less than or equal to 1.0;
• Meet a diesel PM emission factor of 0.15 g/bhp-hr or less for each engine in the group; or
• Meet a weighted average diesel PM emission factor for the engines in the engine group of 0.15 g/bhp-hr or less.

Proposed Rule 1472 exempts facilities from further risk reductions for certain situations provided they meet specific criteria set forth in the proposed rule.

Proposed Rule 1472 includes an exemption from all requirements of the proposed rule for facilities that opt to comply with all applicable requirements of Rule 1402. The final provision of Proposed Rule 1472 states that facilities that comply with the risk reduction requirements of the proposed rule will not be required to comply with the risk reduction requirements of Rule 1402 for their emergency diesel engines. However, in order to comply with state law, any facility that exceeds the significant risk level of Rule 1402 must comply with all applicable requirements of Rule 1402.

Comparison of Proposed Rule 1472 with Rule 1402

Proposed Rule 1472 is designed to be as health protective as implementation of Rule 1402. Table 1 below provides a comparison between requirements for Rule 1402 and Proposed Rule 1472. Proposed Rule 1472 facilities will be subject to Rule 1402 public notification requirements. Similar to Rule 1402, risk reduction requirements are triggered if the facility has an Engine Group Index greater than 1.0 which is based on a cancer risk of 25 in a million. The Compliance Plan under Proposed Rule 1472 streamlines the health risk assessment and risk reduction requirements and can address more facilities in a shorter time frame with the same level of risk reduction than Rule 1402.

Table 1
Comparison Between Rule 1402 and Proposed Rule 1472

Impact Assessment

The addition of diesel PM to the district’s list of toxics is expected to impact a few new permits for diesel engines. Greater implications are anticipated for existing emergency engines because there are so many, and some prime diesel engines as discussed below.

Proposed Rule 1401 Impacts

Rule 1401 applies to new, relocated, or modified equipment. Emergency engines are exempt from Rule 1401 and only a few permits per year are issued for new non-emergency (prime) engines. Requirements for prime diesel-fueled engines have become increasingly more stringent over the past few years due to state ATCMs and district Rules 1470 and 1110.2. In 2006, there were only two stationary prime engines permitted and none in 2007. Currently, the Rule 1401 analysis for these engines is performed using a speciated list of compounds found in diesel exhaust. With the addition of diesel PM to Proposed Rule 1401, the analysis will use the new cancer and non-cancer values for diesel PM which will be somewhat more stringent.

Rule 1402 Impacts

The addition of diesel PM to Rule 1401 also impacts existing facilities subject to Rule 1402 because the same list of TACs is used for both rules. Rule 1402 is not being amended. However, Rule 1402 requires a preliminary analysis of the impacts to existing facilities subject to Rule 1402 when a new TAC is added.

Based on SCAQMD permitting records, approximately 6,000 facilities from a wide variety of industries have diesel-fueled stationary engines. Of the 6,000 facilities, there are approximately 150 facilities with stationary prime engines, including engines that move around but remain at a single facility. All facilities with stationary prime engines will be required to comply with any applicable Rule 1402 requirements such as emissions inventory submittal, health risk assessment, public notification, and risk reduction.

Impacts to existing facilities with emergency diesel engines will vary. Based on SCAQMD staff analysis facilities with one or two emergency diesel engines are not likely to trigger the action risk level under Rule 1402. Facilities with three or more diesel emergency back-up engines may trigger the action risk level under Rule 1402 depending how these engines are grouped together within the facility and the proximity to neighbors. As discussed under Proposed Rule 1472, these facilities can either comply with Proposed Rule 1472 or with Rule 1402. Public notice may be required for any facility with multiple emergency diesel engines if the cancer risk from the engines exceeds 10 in one million. This is expected to impact approximately 1,100 facilities.

Proposed Rule 1472 Impacts

Approximately 545 facilities have three or more stationary emergency diesel engines. Although some facilities will be able to submit an Initial Notification, it is expected that most of these facilities will be required to submit a compliance plan under Proposed Rule 1472. Based on analysis of data submitted for Rule 1470, it is estimated that fewer than 150 of the facilities will have additional requirements to reduce diesel PM emissions. It is difficult to assess the actual number of add-on controls and engine replacements because facilities subject to emission reductions will not be identified until they identify engine groups and calculate their Engine Group Indices. Once the facilities are identified, the proposed rule allows flexibility for attaining compliance. Compliance strategies may include reducing annual testing and maintenance hours, add-on diesel PM controls, and engine replacement.

Public Process

Notification to the Governing Board was made October 6, 2006 of the state-approved risk values for diesel particulate matter emissions from internal combustion engines. The notification included an announcement for a public consultation meeting to be held October 26, 2006 to discuss regulatory approaches for diesel PM from internal combustion engines. Approximately 40 people attended the meeting.

During the rule development process, a public consultation and public workshop were held October 25, 2007 and December 5, 2007 to discuss Proposed Amended Rule 1401and Proposed Rule 1472. Impacts to Rule 1402 facilities from adding diesel PM to the list of TACs were also discussed at these meetings. Comments from these meetings and written comments received are included in the Staff Reports for Proposed Amended Rule 1401 and Proposed Rule 1472.

AQMP and Legal Mandates

Proposed Amended Rule 1401 and Proposed Rule 1472 are air toxic rules that are not AQMP requirements.

California Environmental Quality Act (CEQA)

The AQMD, as lead agency, prepared a Draft Program Environmental Assessment (PEA) pursuant to CEQA Guidelines §15168 and §15252 for the proposed amendments to Rule 1401, which affect facilities subject to Rule 1402 and proposed Rule 1472.  The Draft PEA identified only air quality impacts during construction as a potentially significant adverse impact from implementing the proposed project but determined after evaluation and analysis that the potential air quality impacts are not significant.  No other significant adverse environmental impact was identified.  The Draft PEA was circulated for a 30-day public review period on December 20, 2007 ending on January 18, 2008.  All comment letters received and responses to all comments are included in the Final PEA.  No modifications were made since the release of the Draft PEA that would change the conclusions made in the Draft PEA or worsen the environmental impact analyzed in the Draft PEA.  Therefore, pursuant to CEQA Guidelines §15088.5, recirculation is not necessary since the information provided does not result in new avoidable significant effects.

Socioeconomic Assessment

The proposed amendments to Rule 1401 will affect new, relocated, or modified non-emergency diesel ICE engines. Based on permitting information in 2006, 26 non-emergency diesel engines belonging to 12 facilities were permitted. However, it is difficult to assess how many facilities will be affected in the future. The same amendments will also affect Rule 1402 facilities because these facilities are subject to the same list of TACs in Rule 1401. Rule 1402 facilities can encompass nearly every sector of the local economy. Proposed Rule 1472 will affect 544 facilities which mainly belong to the sectors of government, health care, and real estate management.

The average annual total cost of the proposed amendments of Rules 1401 and 1402, and Proposed Rule 1472 facilities is projected to be $0.8 million in 2000 dollars. Other socioeconomic impacts are insignificant.

Implementation and Resources

Existing AQMD resources will be used to implement Proposed Amended Rule 1401 and Proposed Rule 1472.

Attachments (EXE 785 KB)

1. Summary of Proposal
2. Key Issues and Responses
3. Rule Development Process
4. Key Contacts List
5. Resolution
6. Proposed Amended Rule 1401 Rule Language
7. Proposed Amended Rule 1401 Staff Report
8. Proposed Rule 1472 Rule Language
9. Proposed Rule 1472 Staff Report
10. Socioeconomic Assessment
11. Final Environmental Assessment