BOARD MEETING DATE: December 10, 1999 AGENDA NO. 25




PROPOSAL: 

Adopt 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin and Certification of Final Supplemental Environmental Impact Report

SYNOPSIS: 

The 1997 AQMP, adopted in November 1996, provided a revision to the 1994 California Ozone SIP for the South Coast Air Basin. On January 12, 1999, the U.S. EPA proposed partial approval/partial disapproval of the ozone portion of the 1997 AQMP (also known as 1997 Ozone SIP Revision). To address U.S. EPA’s proposed disapproval, a Draft Proposed 1999 Amendment to the 1997 Ozone SIP Revision and a Draft Supplemental Environmental Impact Report (SEIR) were prepared and released for public comment on October 7, 1999. Written comments received were considered in preparing the draft final 1999 Amendment. A Final SEIR has also been prepared for the Board’s consideration.

COMMITTEE: 

Mobile Source Committee Reviewed on October 15, 1999. Stationary Source Committee Reviewed on October 15, 1999 and November 19, 1999.

RECOMMENDED ACTION:

  1. Authorize the Executive Officer to make appropriate changes to the 1999 Amendment to the 1997 Ozone SIP Revision to reflect any changes approved by the Board at the Public Hearing.
  1. Certify the Final Supplemental Environmental Impact Report for the 1999 Amendment to the 1997 Ozone SIP Revision, in accordance with the attached Resolution (Attachment A).
  1. Adopt the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin in accordance with the attached Resolution.
  1. Direct the Executive Officer to forward the adopted amended 1997 Ozone SIP Revision to the California Air Resources Board for its approval and subsequent submittal to the U.S. Environmental Protection Agency on an expedited schedule.

Barry R. Wallerstein, D.Env.
Executive Officer


Background

The District adopted the 1997 Air Quality Management Plan (AQMP) in November 1996. The 1997 AQMP provides updated technical information relative to baseline emission inventories and control measures to achieve the federal ozone and particulate matter (PM10) air quality standards. In addition, the 1997 AQMP provides a revised attainment demonstration for ozone, PM10, and carbon monoxide, and a maintenance plan for nitrogen dioxide. As part of the adoption of the 1997 AQMP, the District requested that the 1997 AQMP replace the previously submitted ozone, PM10, and carbon monoxide state implementation plans (SIPs). On January 23, 1997, the California Air Resources Board (ARB) approved those portions of the 1997 AQMP pertaining to the federal Clean Air Act requirements for SIP submittals. The 1997 AQMP was subsequently submitted to the U.S. Environmental Protection Agency (EPA) for approval.

On January 12, 1999, the U.S. EPA proposed partial approval/disapproval of the ozone portion of the 1997 AQMP as a revision to the 1994 California Ozone SIP (64 FR 1770). The proposed disapproval primarily pertained to the control measure strategy provided in the 1997 AQMP (referred to as the 1997 Ozone SIP Revision). To-date, U.S. EPA has not taken final action on the 1997 Ozone SIP Revision.

Since the adoption of the 1997 AQMP, three environmental/community organizations filed a lawsuit pertaining to non-implementation of the 1994 California Ozone SIP for the South Coast Air Basin. They cited that the District has not acted on 32 1994 Ozone SIP control measures which were deleted or placed in a "Further Evaluation" status in the 1997 AQMP. On August 27, 1999, the U.S. District Court issued a preliminary order that the District must continue to implement the approved 1994 Ozone SIP until such time that the U.S. EPA approves a revised ozone SIP for the South Coast Air Basin, and establishing a preliminary schedule for adoption and implementation of these measures.

Proposal

The 1999 Amendment to the 1997 AQMP revises the stationary source control element of the 1997 AQMP control strategy that the District is responsible for implementing. The 1999 Amendment provides greater emission reductions in the near-term than the original 1997 AQMP control strategy. The 1999 Amendment is limited to the ozone portion of the 1997 AQMP. As such, 1997 AQMP control measures specific to PM10 would remain the same and are not included in this Amendment. This Amendment does not revise any of the control measures that the state or federal agencies will be implementing. In addition, the ozone attainment demonstration, future emission baseline inventories, carrying capacity, and 2010 emission budgets remain the same as those provided in the 1997 AQMP. The Amendment does provide additional emission reductions for some of the interim milestone years.

Specifically, the 1999 Amendment:

Public Comments

Numerous public comments were received on the draft 1999 Amendment released on October 7, 1999. Two series of public workshops were conducted in the four county region of the district. In addition, 17 written comments were received on the draft 1999 Amendment by November 24, 1999 (the closing date for all written comments). The written comments are summarized below.

The written comments are generally supportive of the proposed Amendment. The commentors expressed that they believe the proposed Amendment would be more beneficial to clean air compared to the pending court order on the 1994 Ozone SIP litigation. Most of the comments requested clarification relative to the discussion on SIP Emission Commitment, discussions on specific control measures, and possible additional reductions and/or control measures.

In addition, concerns were raised relative to the potential expensive control costs associated with control measure CTS-09 - Further Emission Reductions from Large Solvent and Coating Sources. Information was provided on specific potential costs for larger facilities for staff to consider in analyzing the socioeconomic impacts of the Amendment.

Written comments were received relative to the relationship of the Amendment with the pending court order on the 1994 Ozone SIP litigation and a need for assurance from U.S. EPA of an expedited review and approval process on the Amendment.

Lastly, three environmental organizations submitted a joint letter commenting on legal enforceability of the Amendment including: the need to revised the language on the SIP emission commitment to contain legally enforceable commitments; need to accelerate control measure tonnage reduction, adoption and implementation schedules; failure to include adopted measures in the baseline emissions inventories; and failure to include indirect source rules and other control measures deleted from prior plans.

Staff is preparing responses to the written comments received and staff’s responses will be provided under separate cover. In addition, the draft Amendment as released in October 1999 has been revised to address some of the comments raised.

Proposed Modifications to the Draft 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin

Based on comments received, the Final 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin submitted for the Governing Board consideration consists of the documents titled:

Based on comments received, the Draft 1999 Amendment is revised to include recognition of the adoption of control measure CTS-02C(P2) - Further Emission Reductions from Solvent Cleaning Operations and portions of control measure CTS-08 - Further Emission Reductions from Industrial Coating and Solvent Operations, clarifications to the discussion on the SIP reduction commitment. In addition, the control measure descriptions provided in Appendix B of the 1999 Amendment are revised to include specific dates for implementation of each control measure.

CEQA & Socioeconomic Analysis

Based on the staff’s review of the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin, it was determined, pursuant to CEQA Guidelines §15163, that a supplement to the Final Environmental Impact Report (EIR) for the 1997 AQMP was the appropriate CEQA document for the proposed project. A Draft Supplemental Environmental Impact Report (SEIR) was prepared and it was concluded no environmental areas would be adversely affected by the proposed project. Since no significant adverse impacts were identified, an analysis of project alternatives pursuant to CEQA Guidelines §15126.6, was not required. The Draft SEIR was circulated for a 30-day public review and comment period, which ended November 5, 1999. Twelve comments were received and each has been addressed and incorporated into the Final SEIR for the proposed project. Finally, since no significant adverse environmental impacts were identified as a result of implementing the proposed project, a Statement of Findings, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Plan are not required.

A socioeconomic impact analysis was conducted for the Draft 1999 Amendment to the 1997 Ozone SIP Revision and a draft Socioeconomic Impact Report was released for public comments on October 27, 1999. The socioeconomic impact analysis examined the additional costs associated with the 1999 Amendment compared to the overall cost of the 1997 AQMP. The overall benefits of implementing the 1999 Amendment is assumed to be the same as that estimated in the 1997 AQMP ($5.7 to $5.8 billion in 1993 dollars) since the 1999 Amendment projects achieving the same level of remaining VOC emission levels by 2010 (the year for attainment of the federal ozone air quality standard). However, there is recognition that the overall benefits may be greater with the 1999 Amendment since the additional control measures will provide greater emission reductions earlier compared to the 1997 AQMP. Based on the analysis, it is estimated that the overall cost of the 1999 Amendment will be $1.76 billion compared to $1.71 billion for the 1997 AQMP. Implementation of the stationary source control measures proposed in the 1999 Amendment would result in about 1,700 jobs foregone annually. However, with implementation of the mobile source control measures provided in the 1997 AQMP, implementation of the 1999 Amendment will result in an overall net difference of about 1,100 fewer new jobs created annually compare to the 1997 AQMP.

Attachments

A. Governing Board Resolution
B. Revised Draft 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin
C. Final Socioeconomic Report for the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin
D. Final Supplemental Environment Impact Report for the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin

ATTACHMENT A

GOVERNING BOARD RESOLUTION

ATTACHMENT A

RESOLUTION NO. 99-

A Resolution of the South Coast Air Quality Management District Governing Board certifying the Final Supplemental Environmental Impact Report for the 1999 Amendment to the 1997 Ozone State Implementation Plan (SIP) Revision for the South Coast Air Basin and adopting the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin, to be referred to after adoption as the "1999 Ozone SIP Revision for the South Coast Air Basin."

          WHEREAS, the South Coast Air Basin is classified as "extreme" nonattainment for ozone in accordance with the federal Clean Air Act; and

          WHEREAS, the South Coast Air Quality Management District Board adopted the 1994 Air Quality Management Plan and the 1994 Air Quality Management Plan was submitted to the U.S. Environmental Protection Agency as part of the 1994 California Ozone State Implementation Plan (SIP) to satisfy the requirement of the federal Clean Air Act that an ozone attainment demonstration plan be submitted for areas designated as "severe-17" and "extreme" nonattainment for ozone; and

          WHEREAS, the U.S. Environmental Protection Agency approved the 1994 California Ozone SIP in September 1996; and

          WHEREAS, the South Coast Air Quality Management District Board adopted the 1997 Air Quality Management Plan in November 1996 and the ozone portion of the 1997 Air Quality Management Plan (also known as the 1997 Ozone SIP Revision) was submitted to the U.S. Environmental Protection Agency to revise the South Coast Air Basin portion of the 1994 California Ozone SIP; and

          WHEREAS, the U.S. Environmental Protection Agency has proposed partial approval/partial disapproval of the 1997 Ozone SIP Revision for the South Coast Air Basin; and

          WHEREAS, the South Coast Air Quality Management District ("District") is committed to comply with the requirements of the federal Clean Air Act; and

          WHEREAS, the South Coast Air Quality Management District has prepared a 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin to address the U.S. Environmental Protection Agency’s proposed partial disapproval; and

          WHEREAS, the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin revises only the VOC and NOx stationary source control measures that the South Coast Air Quality Management District is responsible for implementing, and

          WHEREAS, the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin does not revise the 1997 Air Quality Management Plan’s emission inventories, the ozone attainment demonstration, and the non-ozone portions of the 1997 Air Quality Management Plan, and

          WHEREAS, the 1999 Amendment to the 1997 Ozone SIP Revision is the result of over two years of work on the stationary source control measures that the South Air Quality Management District has responsibility to implement, as part of the next comprehensive Air Quality Management Plan revision and two months of public review and debate, and has been revised in response to public comments; and

          WHEREAS, the South Coast Air Quality Management District has participated in an extensive public outreach process consisting of ten public workshops prior to the adoption hearing; and

          WHEREAS, the Socioeconomic Report for the 1999 Amendment to the 1997 Ozone SIP Revision was prepared and released for public review, and is revised based on comments received such that it is a "Draft Final Socioeconomic Report for the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin;" and

          WHEREAS, the South Coast Air Quality Management District Board finds and determines that the 1999 Amendment to the 1997 Ozone SIP Revision is considered a "project" pursuant to the California Environmental Quality Act (CEQA); and

          WHEREAS, the proposed "project" is a modification to the previously analyzed 1997 Air Quality Management Plan; for which an environmental impact report (EIR) was prepared and certified by the South Coast Air Quality Management District Board in November 1996, and

          WHEREAS, those portions of the 1997 Air Quality Management Plan that are not revised by the 1999 Amendment to the 1997 Ozone SIP Revision rely on the previous analysis in the Final EIR for the 1997 Air Quality Management Plan, and

          WHEREAS, pursuant to CEQA Guidelines §15163, a Supplement to the previously prepared Final EIR for the 1997 AQMP is the appropriate CEQA document to address potential adverse impacts from the 1999 Amendment to the 1997 Ozone SIP Revision, and

          WHEREAS, the South Coast Air Quality Management District has prepared a Draft Supplemental EIR (SEIR), pursuant to all relevant requirements of CEQA, setting forth the potential adverse environmental impacts of adopting and implementing the 1999 Amendment to the 1997 Ozone SIP Revision, and that the Draft SEIR has received public comment to which staff has prepared responses, such that it is now a Final SEIR; and

          WHEREAS, the Final Supplemental Environmental Impact Report (SEIR) represents over four months of work, including 30 days of public review and one cycle of responses to comments; and

          WHEREAS, it is necessary that the adequacy of the Final SEIR be determined by the South Coast Air Quality Management District Board prior to its certification; and

          WHEREAS, it is necessary that the adequacy of responses to all comments received on the SEIR be determined prior to its certification; and

          WHEREAS, no significant adverse environmental impacts were identified for the proposed project and, therefore, an alternatives analysis pursuant to CEQA Guidelines §15126.6 was not required; and

          WHEREAS, no significant adverse environmental impacts were identified for the proposed project and, therefore, a Statement of Findings, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Plan are not required; and

          WHEREAS, the South Coast Air Quality Management District Board voting on this Resolution has reviewed and considered the Final SEIR, including responses to comments on the Draft SEIR; and

          NOW, THEREFORE, BE IT RESOLVED, that the South Coast Air Quality Management District Board certifies that the Final SEIR for the 1999 Amendment to the 1997 Ozone SIP Revision, which consists of the following documents, has been completed in compliance with the requirements of CEQA and finds that the responses to comments are adequate and thereby approves them:

  1. Draft Supplemental Environmental Impact Report for the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin (State Clearinghouse No. 96011062), including the environmental analysis of the 1999 Amendment to the 1997 Ozone SIP;
  1. Final Supplemental Environmental Impact Report for the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin (State Clearinghouse No. 96011062), including the Draft SEIR (including minor non-substantive changes as a result of comments received); comments received on the Draft Supplemental Environmental Impact Report, and responses to these comments.

          BE IT FURTHER RESOLVED, that no significant adverse impacts to any environmental topics were identified as a result of implementing the 1999 Amendment to the 1997 Ozone SIP Revision. Because the impacts were determined to be not significant, project alternatives and mitigation measures were not required.

          BE IT FURTHER RESOLVED, that the South Coast Air Quality Management District commits to continue the public outreach and the consultation with local sanitation districts as set forth in the Governing Board resolutions for the 1996 amendments to Rule 1171 – Solvent Cleaning Operations, and the 1997 amendments to Rule 1122 – Solvent Degreasers.

          BE IT FURTHER RESOLVED, that the South Coast Air Quality Management District Board directs staff to continue to work with industry and other stakeholders on assessing reactivity of architectural coatings. This analysis should include assessing the availability and reactivity of individual VOC species, under varying NOx conditions, as well as further development and refinement of the modeling assumptions for reactivity. The data gathered should be taken into consideration for a reactivity-based architectural coatings control strategy, if feasible.

          BE IT FURTHER RESOLVED, that given the concerns raised relative to the costs associated with certain control technologies, the South Coast Air Quality Management District Governing Board directs staff to seek cost effective control options including approaches directed at manufacturers and distributors of VOC products, during the rule development process to minimize potential socioeconomic impacts.

          BE IT FURTHER RESOLVED, that the South Coast Air Quality Management District Board hereby adopts the 1999 Amendment to the 1997 Ozone SIP Revision, consisting of the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin as revised based on public comments received (dated December 1999) and the Final Socioeconomic Report for the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin.

          BE IT FURTHER RESOLVED, that the Executive Officer is hereby directed to finalize the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin as amended by the final changes such that it is known as the "1999 Ozone SIP Revision for the South Coast Air Basin".

          BE IT FURTHER RESOLVED, that the Executive Officer is hereby directed to forward a copy of this Resolution, the 1999 Amendment to the 1997 Ozone SIP Revision for the South Coast Air Basin, the Final Socioeconomic Report, and the Final EIR to the state Air Resources Board, as required under California Health and Safety Code Section 40925(c), and to request that the 1999 Ozone SIP Revision be forwarded to the U.S. Environmental Protection Agency for approval as part of the State Implementation Plan.

          BE IT FURTHER RESOLVED, that the Executive Officer is hereby directed to work with the state Air Resources Board and the U.S. Environmental Protection Agency to ensure expeditious approval of the 1999 Ozone SIP Revision for the South Coast Air Basin.

Dated:______________ Clerk of the Board

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