BOARD MEETING DATE: May 2, 2008
AGENDA NO. 26

RECOMMENDED ACTION:

Receive and file.
 

Dennis Yates, Chair
Stationary Source Committee

Attendance

The meeting began at 10:31 a.m. Present were Chair Dennis Yates and Committee Members Dr. Joseph Lyou (left at 12:17 p.m.) and Jane Carney (left at 12:00 noon). Absent were Committee Members Ronald Loveridge, Gary Ovitt and Michael Cacciotti.
 

INFORMATIONAL ITEMS

(As per Mayor Yates’ request Item No. 6, Riverside Cement Status Report was taken first).

1. Gregg Industries Health Risk Assessment Results

Jill Whynot, Director of Strategic Initiatives, summarized background information on what Gregg industries does, the types of equipment they have, and the AB2588 program. A Health Risk Assessment (HRA) was prepared for Gregg Industries to estimate emissions and resulting maximum individual cancer risk, and acute and chronic non-cancer health risks. Health risk assessments are one of many tools that staff uses to evaluate facilities toxic emissions impacts. Emissions contributing most to the cancer risk estimates from Gregg Industries include benzene, naphthalene and nickel from their molding operations.

This HRA was carefully scrutinized by District staff and staff from the Office of Environmental Health Hazard Assessment (OEHHA). Staff also received comments from the City of El Monte. The original HRA submitted was not acceptable because there was information and documentation lacking. Staff worked with the facility, who submitted a revised HRA that still was deficient. Staff made adjustments and corrections and finalized the risk assessment in early April 2008. These adjustments included not allowing any reductions for the Sonoperoxone system due to lack of evidence to support an 84 percent reduction in toxics, adding seven nearby receptors that were not listed, and other technical corrections. The maximum individual cancer risk from Gregg Industries in the final HRA is 9.4 in a million, which is below the level of 10 in a million that would require public notice. Annual emission reports from the facility will be monitored and the facility will be required to update information for AB2588 every four years.

Many community members attended the meeting, and 10 made comments to the Committee members. Three of them provided written comments, as well. The residents complained about strong frequent odors that have been occurring for many years and expressed frustration that the issue has not yet been resolved. They complained about soot damaging cars in the neighborhood and collecting on surfaces. Residents are concerned about their children. Other comments were that the HRA is not accurate and that there are children with cancer at a school nearby. Others asked that the facility be required to move away from their area to improve their health, and that other facilities should not be allowed to locate in their neighborhood. There was a request for AQMD staff to attend meetings in the community, and to respond to complaints even if there are not enough callers for a nuisance violation.

A consultant that prepared the HRA for Gregg Industries stated that they believe the 84 percent reduction should have been included in the HRA. He mentioned that the HRA is based on 2004 emissions, and the company has made many changes that would further reduce risk since that time.

A representative from the City of El Monte indicated that there have been facility closures in the city and that they are working to reduce future conflicts between residential and land uses. He asked to be notified of future meetings.

Board member Carney wants staff to work with the community to resolve the on-going odor problems that are frustrating these residents. She asked what is being done to find and correct the source of odors. Mohsen Nazemi and Chung Liu explained that it is a complex process, and that many inspections and samples have been taken. A phenolic odor seemed to be the nature of the complaints initially, and after the process at Gregg Industries was changed, odors now seem to be more metallic. Mr. Nazemi indicated that AQMD has recently issued Notices of Violation (NOV) to Gregg Industries (including a public nuisance) and resolution of Notices of Violation will try to address this issue. Ms. Carney also asked when the last public meeting was and she was informed that it was in December 2007.

Board member Lyou wants a fast resolution to the Settlement Agreement, which will include an environmental audit of the facility. He has questions on the HRA, and continues to have concerns about risk assessment, in general. Dr. Lyou asked about nickel emissions from a baghouse that was observed during a Department of Toxic Substances Control and AQMD inspection. Staff explained that a limitation of HRAs is that the assessment includes emissions from routine and predictable operations. Emissions from improper dumping of materials from this baghouse were not included however, Mr. Nazemi indicated that AQMD has issued an NOV for this incident. Dr. Lyou also asked staff to meet with complainants of March 18th.

Mayor Yates asked whether a company to do the environmental audit had been chosen. Staff responded that this has not occurred yet, and is part of the Settlement Agreement negotiations. Mayor Yates stated that AQMD does not have the power to shut down facilities, and asked Kurt Wiese to explain this further. The Mayor mentioned that staff had spent considerable time and resources to resolve this difficult situation, and will continue to do so. Ms. Carney concluded by asking that staff come back to the committee to follow up on the Settlement Agreement.

2. Rule 314 – Fees for Architectural Coatings

The staff presentation was waived however Laki Tisopulos commented that we have made some changes to the proposal as a result of comments received, including comments received at the Board Member Retreat last week. These included a fee exemption for ultra-low VOC products, reducing the number of inspectors requested by one FTE and adjusting the fee rates accordingly. The inspector FTE reduced would reallocate as one of the five additional inspectors recommended by the Chairman to be funded from the BP ARCO settlement. This FTE would be responsible for inspection at the point of use of the coatings. In addition, there has been some industry- requested minor language clarification. Since these changes have been included in the proposal after the hearing was noticed, staff is recommending this item be held over from May to the June Board Meeting to allow interested parties at least 30 days for the opportunity to review these amendments.

Jeffrey Marguilies – NPCA
Recommends that the District clearly indicate whether or not the hearing will be opened and testimony taken in May or merely continued to the June meeting. This is important to his members since they have comments but many have to travel from across the country to participate in the hearing. The response was that since the hearing was noticed the Board would take testimony in May if there were persons that wished to testify at that time. However, it was suggested that if possible, his members should hold any redundant testimony and only present new testimony for the June hearing.

Billy Evans - CEO Dunn Edwards
Indicated that this rule is not for air quality but strictly a fee issue. Therefore, he stated that, there is no urgency from an air quality perspective to move forward at this time. Given the recent changes and other issues that may need to be resolved, the proposal should remain with this Committee until those matters are worked out, particularly the inequity issues.

Chairman Yates expressed his concern about the possibility of equity issues in the proposal that would allow some out of area suppliers to avoid the payment of fees, creating an advantage over local manufacturers. The District should develop the best rule possible before adopting it rather than adopting something with issues and going back to fix it at a later date.

3. 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

The staff presentation was continued until the May Committee meeting. Comments on Proposed Amended Rules 1146 and 1146.1 (small and large industrial, commercial and institutional boilers) were received from four individuals. The general focus of the commenters was on the proposed new emissions standard (9-ppm) and their belief that the new ultra low NOx burner (ULNB) technology would not support the proposed lower standard. An alternate proposal of 15 ppm was presented as a more reasonable target for the rules. Brief comments on reduced boiler efficiency, feasibility of equipment installation and costs were also presented.

Due to the length of the meeting staff provided a limited response to the comments indicating that a more detailed discussion of the issues was provided in the presentation material and would be addressed at the May meeting.

4. Status Report on Results of South Bay Flare Event Notification Survey

Edwin Pupka, Senior Enforcement Manager, Engineering and Compliance, presented this item providing Stationary Source Committee members with a brief summary of the results of the South Bay Flare Event Notification Study/Survey. In summary, while most residents (87%) living within a five (5) mile radius of a refinery or related industry type are aware of flaring and most (63%) consider them to be a part of normal operations, slightly more than one-third (38%) have concerns about refinery flares and flaring events. Key concerns include health (50%), environment (43%) and safety (35%). 42% want additional information with a high concentration (67%) on potential impacts and concerns.

Recommendations from the survey include providing additional information to the surrounding communities using either passive or self-initiated methods such as media and refinery, visiting a web site or calling an 800 number. More intrusive communications methods could also be utilized including direct mailings, media articles, brochures and automated phone calls.

No comments were received from the public or Board members.

5. Rule 1610 – Old Vehicle Scrapping

Laki Tisopulos, Assistant Deputy Executive Officer, stated that staff is proposing amendments to Rule 1610 – Old Vehicle Scrapping to harmonize our program requirements with those of the State. There are a couple of issues that vehicle dismantlers brought to our attention, and staff is trying to resolve those issues.

6. Riverside Cement Status Report

Philip Fine, Manager gave a presentation on TXI Riverside Cement, which was the same presentation provided at the Town Hall meeting held on Monday evening, April 21, 2008 in Riverside area. The presentation covered the results of MATES III monitoring data and AQMD’s detailed investigations, surveillances and inspections which concluded that Hexavalent Chromium releases where originated from Riverside Cement activities.

There were no public comments after the presentation by Dr. Fine.

Ms. Carney asked about the chemical composition of the particulate fallout on cars and surfaces, and whether there were any other health concerns other than hexavalent chromium or PM10. Dr. Fine answered that the deposition plate studies were designed to address that question, and that the staff is currently taking samples from the air conditioning systems at residences in the area. Dr. Wallerstein mentioned that staff is also looking at the literature to determine if there are other chemical species in cements that would be of concern. Ms. Carney followed up asking if there was testing being conducted at the other cement facility in the area. Dr. Wallerstein answered that testing at the other facility is ongoing, that it appears to be better controlled, and that staff is also inspecting and sampling other smaller facilities in the area that handle cement.

Dr. Lyou asked if staff had kept track of the commitments made to the members of the public at the Town Hall meeting on Monday night. Dr. Wallerstein replied that it is being tracked and a list could be provided. He gave some examples of follow up work.

Dr. Lyou asked if the new PM10 samplers ordered for the wildfire program could be used in this case, and Dr. Fine replied that while they are still on order, they would be used in this situation. Dr. Wallerstein mentioned that the amount of sampling being conducted in this community is unprecedented.

Dr. Lyou asked if we knew the source of the hexavalent chromium. Dr. Wallerstein replied that it seems to be the clinker produced in the Mojave Desert area and that AQMD has met with Mojave Desert AQMD about site visits and lab analysis of samples from their area. Dr. Lyou mentioned the tire burning as a source, and Dr. Wallerstein said that Riverside Cement does not burn any tires, but California Portland Cement does. He said that while we are still not sure, we think the source is most likely the raw materials.

Dr. Lyou asked when the Title V permit is up for renewal at TXI Riverside. Dr. Wallerstein replied January of 2009, and the public should contact Mohsen Nazemi with comments or questions.

Dr. Lyou asked about Rule 1402 and the timeline for the new health risk assessment. Dr. Wallerstein stated that the new HRA is due 150 days by rule but that he hopes it is much faster. Discussion continued on the process for the health risk assessment approval process, but that the AQMD will not depend on that in trying to get the proper controls in place, including potential MACT requirements, a modified rule, and a stipulated order of abatement.

Mayor Yates asked if AQMD uses scheduling software to set milestones and timelines for a project, and while that specific software is not in use, Dr. Wallerstein offered to put together a timeline for the Board Members.
 

WRITTEN REPORTS

All written reports were acknowledged by the Committee.
 

OTHER BUSINESS

A public comment was made by the founder of CleanAir Logix in Signal Hill who is also an inventor of a system that is being developed in Long Beach that would reduce emissions in the port and surrounding neighborhoods. He said a Mr. Berman contacted Barry’s office to arrange a meeting to resolve those issues.

The meeting was adjourned at 12:44 p.m.
 

Attachments (doc 61 kb)
April 25, 2008 Committee Agenda (without its attachments)