Back

REPORT: 

Stationary Source Committee

SYNOPSIS: 

The Stationary Source Committee met Friday, November 19, 1999. Following is a summary of that meeting. The next meeting will be December 17, 1999, at 11:00 a.m., in Conference Room CC8.

RECOMMENDED ACTION:

Receive and File.

Mee Hae Lee
Chair, Stationary Source Committee

Attendance

The meeting began at 11:05 a.m. Present were, Mee Hae Lee, Committee Chair, Jon Mikels, Leonard Paulitz and Norma Glover. Absent was Ron Loveridge. Jon Mikels led the meeting for Mee Lee who attended via videoteleconference.

DISCUSSION ITEMS

1. Update on 1999 Plan Amendment

   Elaine Chang, Assistant Deputy Executive Officer, Planning, Rule Development & Area Sources, updated the Committee on the proposed 1999 amendment to the 1997 Ozone SIP Revision. Since last month, two rounds of public workshops have been completed. Based on comments received, there are questions from the general public, ARB, and EPA staff as to the specifics of SIP commitment. Staff continues to work with industry to resolve the cost-effectiveness threshold, and continues to make progress with EPA with respect to staff’s proposal.

2. Presentation on the Progress Report for the Proposed Redesign of the Air Quality Assistance Fund
   
   La Ronda Bowen, Public Advisor, introduced contractor Carleen Bedwell, Project Manager, Applied Development Economics, to present this report. The purpose of this study is to review the current Air Quality Assistance Fund (AQAF), recommend improvement modifications, and assist with the implementation. This $4 million fund was established in 1990. Legislature redirected $3 million to a voluntary ridesharing program. Current assets are $2.2 million. There are an estimated 26,000 small businesses subject to AQMD regulations and in the last year there have been 7,000 businesses that have requested permits, that would fall into the category of businesses eligible to use this program. Out of fifty recently permitted small businesses that were surveyed, 28% said that they would not be able to finance future equipment easily. 90% of these businesses said they would like financial assistance. The contractor recommends AQAF should include a wider array of small business financing entities, not do its own credit analysis on individual loan applications, and continue to use interest revenue from the fund to cover operations of the fund. Mr. Mikels suggested that AQMD should also survey those who have not been able to finance new projects on their own or via the AQAF. This provides for a greater outreach for AQAF use for businesses that would like financial assistance.

3. BACT Guidelines Quarterly Report

   Jack Broadbent, Deputy Executive Officer, Planning, Rule Development & Area Sources, reported on this item. BACT is required for new and relocated sources and for modifications that increase emissions. AQMD staff regularly updates the BACT Guidelines and reports back to the Board on a quarterly basis. Mr. Broadbent reported that there has been a variety of equipment added this last quarter.

   In addition to the BACT determinations, staff briefed the Committee on the concerns raised by the Scientific Review Committee (SRC) relative to the BACT determination process. Several SRC members expressed their desire to have BACT determinations kept in place for a year to give certainty to the business community rather than update the Guidelines when a new technology has been shown to work and put in place. According to EPA however, the Guidelines are required to be updated as new technology is developed. Mr. Paulitz also agreed that in order to provide incentive to new technologies that BACT should change as such technologies are developed. The updated Guidelines are available on the AQMD website. Concerns have also been expressed relative to how AQMD engineers make their case-by-case determinations and guidance given to engineers by AQMD management. With regard to those concerns, staff explained that outreach information is being prepared to inform the public what information they can provide for the engineer’s case-by-case determination. Staff has also agreed to let the SRC review engineering guidance memos relative to BACT prior to their implementation. The BACT Guideline updates will be presented to the Board at the December Board meeting.

4. Rule 1189 – Emissions from Hydrogen Plant Process Vents

   Laki Tisopulos, Manager, Planning, Rule Development & Area Sources, presented this item. Rule 1189 is a new rule being designed to control emissions from hydrogen plant process vents. This is a new control measure that will be included in the 1999 proposed amendment to the AQMP. Staff is proposing that by July 1, 2001, all facilities will have to install low methanol catalysts and that by January 1, 2003 the facilities will have to demonstrate that their total emissions are less than 1.5 lbs. of VOCs per cubic feet of hydrogen produced. There will also be annual compliance tests. Industry has expressed concerns on the stringency and the necessity of the established emission limits. Industry supports the use of catalyst technology but some members are uneasy with the emission limits and the new test protocol. Staff’s analysis, however, demonstrates that the proposed emission limits are feasible and necessary to ensure enforceable emission reductions from this source category. Four public workshops and consultation meetings have been held and the set hearing will be in December 1999, and the Public hearing will be in January 2000.

5. Notice of Violation Penalty Summary

   The Committee acknowledged the summary report attached to the agenda.

6. Status of Environmental Justice Initiative #10: Rules 1401 and 1402

   Jill Whynot, Manager, Planning, Rule Development & Area Sources, gave a status update on EJ #10. Staff is proposing amendments to Rule 1402 for March 2000. The basic approach is to reduce the risk thresholds and to address several thousand facilities through source-specific rules, rather than the inventory and health risk assessment process in Rule 1402. This will reduce resource requirements for staff and businesses and will result in toxic reductions based on available technology.

   The staff proposal will reduce the current threshold of 100 in a million and hazard index of 5 to 25 in a million and hazard index of 3. The five-year compliance period will be changed to three years, with extensions based on technological, and possibly economic criteria. Board members recommended that staff analyze economic impacts and benefits for their consideration at the March meeting.

   Staff is continuing discussions with the working group and has scheduled a public workshop for December 8^th. A more detailed report will be presented at the January Stationary Source Committee meeting.

7. Rule Forecast Report

   Jack Broadbent highlighted that in December the water heater rule will come before the Board. The Committee acknowledged the report attached to the agenda.

The meeting was adjourned at 1:20 p.m.

Attachments

November 19, 1999 Committee Agenda (without its attachments)

/ / /