BOARD MEETING DATE: June 2, 2008
AGENDA NO. 33

RECOMMENDED ACTION:

Receive and file.

Dennis Yates, Chair
Stationary Source Committee

Attendance

The meeting began at 10:30 a.m. Present were Dennis Yates and Gary Ovitt (left at 11:10 a.m.). Absent were Committee Members Joseph Lyou, Ronald Loveridge, Jane Carney and Michael Cacciotti.

INFORMATIONAL ITEMS

1. Proposed Rule 314 - Fees for Architectural Coatings
   Dr. Laki Tisopulos, Assistant Deputy Executive Officer of Planning, Rules & Area Sources, gave the presentation explaining the goals, requirements, recent changes, and key issues.  Recent changes include a fee exemption for ultra-low VOC products, reducing the number of inspectors by one FTE and adjusting the fees accordingly, and minor rule clarifications.  In response to the equity concerns expressed regarding products distributed by third-party distributors not being subject to the rule, the revised staff proposal will require architectural manufacturers to provide staff with their distributors list.  Staff is committing to utilize that list to expeditiously develop a rule amendment to expand its applicability to include distributors.  Several industry representatives from Dunn Edwards, Sherwin Williams, Vista Paint and the National Paint & Coating Association commented on the proposed rule requesting more time for rule development and expressed concerns about the increased fees, indicating that industry is willing to pay for the current Rule 1113 program costs, but does not believe the enhanced program costs are necessary.
    
2. Rule 1146 – Emissions of Oxides of Nitrogen from Industrial, Institutional, and Commercial Boilers, Steam Generators, and Process Heaters and Rule 1146.1 – Emissions of Oxides of Nitrogen from Small Industrial, Institutional, and Commercial Boilers, Steam Generators, and Process Heaters
   Joe Cassmassi, Planning and Rules Manager, provided an overview of the proposed revisions to Rules 1146 and 1146.1, for large and small industrial, commercial and institutional boilers.  The proposed rules will reduce NOx emissions from 30 ppm to either 9 or 5 ppm for boiler rated at 75 million Btu per hour or higher.  The presentation outlined the tiered implementation schedule, options for emissions limits and exemptions.  The presentation highlighted proposed modifications to the compliance determination which would line up source tests with RECLAIM schedules and would rely on more routine monitoring with hand-held analyzer equipment.  Estimates of cost effectiveness bringing the 30 ppm emissions limit to 9 ppm or lower for a range of throughput (25% to 75%) provide an approximate maximum cost of $20,000 per ton of NOx reduced.  Issues raised by the regulated community focused on the ability to regularly attain the 9 ppm emissions limit.  Staff stated that the District was committed to ongoing evaluation of the ultra low NOx burner capability to consistently reach the 9 ppm emissions limit and would further investigate the impact to boilers based on an atmospheric burner system.
    
3. Rule 1158 – Storage, Handling, and Transport of Petroleum Coke
   Jill Whynot, Director of Strategic Initiatives, gave an update on proposed amendments to Rule 1158.  The amendments are needed to clarify rule intent, and cover operations that are not currently explicitly listed but which were intended to be covered by the rule.  Additional flexibility is also being provided in the exemptions.

   This rule was originally adopted in 1983 and amended in 1999 to address covering piles of coke and coal that were of concern to communities, especially in areas near the Ports.  Ms. Whynot described the proposed changes and summarized some of the issues that have been raised.  The changes mainly deal with new and clarified definitions, clarifications to compliance flexibility, removal of obsolete language, and additional exemptions.

   Staff has received many comments that request additional changes.  Some recommendations have been incorporated, and others are under consideration.  Some comments have requested changes that would undermine the rule intent or the findings from a recent Hearing Board case.  This rule amendment will be set in June for a July public hearing.

   Chuck Timms, representing Metropolitan Stevedore, commented that part of their water recycling system would no longer be eligible for an exemption from the rule due to one of the proposed changes.  Alternatives would be very expensive, and not cost-effective.  He will meet with staff to discuss this further.

   Miles Heller, from BP, stated that there are safety and equipment protection issues related to handling of hot coke.  BP recommends a 48-hour limit be applied to storage of this material outside an enclosure.   BP also has suggested language regarding repair of enclosures to avoid needing to go through the variance process.  He will work with staff next week.

   Bernard Griffiths, representing Hickman Williams, is requesting an exemption for small end-users and specialty handlers.  Super sacks should not be subject to the enclosure requirements.  Staff will also meet with him next week.

   Jay Grady, of California Portland Cement, indicated that watering coal in railcars is a concern.  Increased moisture will result in increased NOx emissions and too much water can result in coal fires.  This facility does not have any control on when railcars deliver cement and coal, so an automated system would not work well.  They recommend a time limit for rail cars to sit on site provided the material is not allowed to dry out.  Staff will also be meeting with this commenter.

WRITTEN REPORTS

All written reports were acknowledged by the Committee.

OTHER BUSINESS

Mohsen Nazemi, Deputy Executive Officer, Engineering & Compliance, distributed a letter written by Joe Blackburn regarding Gregg Industries to Mayer Yates and others during the Public Comment period.

The meeting was adjourned at 11:50 a.m.

Attachment (doc 54KB)

May 16, 2008 Committee Agenda (without its attachments)