BOARD MEETING DATE: March 6, 2009
AGENDA NO. 35

PROPOSAL:

Amend Rule 1156 – Further Reductions of Particulate Emissions from Cement Manufacturing Facilities.

SYNOPSIS:

The proposed amendment would require additional measures to reduce particulate emissions, including hexavalent chromium. The proposal also includes wind monitoring, and monitoring and sampling for hexavalent chromium. Contingency measures are built into the rule, and would be triggered if elevated particulate or hexavalent chromium levels occur.

COMMITTEE:

Stationary Source June 20, 2008, September 19, 2008, November 21, 2008, and January 23, 2009, Reviewed

RECOMMENDED ACTIONS:

Adopt the attached resolution:

1. Certifying the previously prepared (October 13, 2005) Final Environmental Assessment (EA) for Rule 1156 – Further Reductions of Particulate Emissions from Cement Manufacturing Facilities; and
2. Amending Rule 1156 – Further Reductions of Particulate Emissions from Cement Manufacturing Facilities.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Rule 1156 - Further Reductions of Particulate Emissions from Cement Manufacturing Facilities was adopted in November 2005. The rule partially implemented the 2003 AQMP Control Measure BCM-08 – Further Emission Reductions from Aggregate and Cement Manufacturing Operations by requiring cement manufacturing facilities to comply with specific requirements applicable to various operations, including material storage and handling at the facilities. TXI Riverside Cement (TXI) in Riverside and California Portland Cement Company (CPCC) in Colton are the two cement manufacturing facilities in the AQMD’s jurisdiction subject to Rule 1156.

As AQMD staff completed the data analysis for the Multiple Air Toxics Emissions Study (MATES III), clear, unexpected elevated levels of hexavalent chromium, a potent, known human carcinogen, were observed at the Rubidoux monitoring station in Western Riverside County. These elevated concentrations in large part were traced back to the cement manufacturing operations, which led to this rule amendment effort.

Staff initially proposed total enclosure for clinker storage and handling. However, based on additional review, the original proposal has been significantly revised. Staff has worked extensively with CPCC to resolve many of their concerns and to lower compliance costs. The proposal described below takes additional steps to further reduce particulate emissions and hexavalent chromium from cement manufacturing facilities at significantly less cost than the initial proposal, while still ensuring public health protection.
 

Proposal

For clinker storage and handling activities, PAR 1156 would enable CPCC to use alternatives instead of total enclosure, such as a three-sided barrier covered with a roof and wind fence for active, barn-type storage; tarps and barriers/wind fences for other active piles; and tarps for inactive piles. TXI has already discontinued open clinker storage and handling activities pursuant to a settlement agreement reached with the District.

The proposal would require ambient monitoring to measure hexavalent chromium at the property fence line once every third day for both facilities. This will help ensure that information is available regarding ambient chrome levels near the facilities. An action level of 0.7 nanograms per cubic meter (ng/m³), less background, based on a 30-day rolling average, is included in the rule. This level represents a 100 in 1 million cancer risk at the facility fence line. Less frequent monitoring and sampling (once every six days) can be conducted if there is no hexavalent chromium exceedance during twelve continuous months of monitoring. Any hexavalent chromium concentration from a 30-day or a 90-day rolling average that is based on one-in-three-day or one-in-six-day sampling, respectively, in exceedance of 0.7 ng/m³, excluding background level, would trigger total enclosure within 24 months from date of exceedance, or an incremental enclosure over a four-year period, for all clinker storage and handling. In addition, a reversion back to the once-in-three-day sampling schedule would be required if an exceedance occurs under the less frequent monitoring schedule.

The proposal would require corrective actions to reduce clinker dust, as well as application of dust suppressant on a facility’s non-clinker open storage piles, unpaved roads, and unpaved areas for any exceedance of the Rule 403 (Fugitive Dust) upwind/downwind PM10 level. The proposal would also require continuous PM10 ambient monitoring if the Rule 403 PM10 level is violated three times within a 36-month period. These requirements would apply to both TXI and CPCC.

Wind monitoring would be required at both facilities. The proposal includes a two-hour halt to all clinker handling activities in the open at CPCC if instantaneous wind speeds exceed 25 miles per hour (mph). During the aforementioned two-hour period, CPCC would be exempt from the 100-foot visible dust plume limit, provided that certain requirements are met.

The proposal would also require the submission of a compliance monitoring plan for both facilities. In addition, rule language was modified and an exemption was added to allow for wind fence removal for vehicle access and periodic maintenance of the clinker crane or storage barn at CPCC. Additional recordkeeping requirements pertinent to the monitoring and exemption provisions are also proposed. PAR 1156 also contains other minor amendments and clarifications to better demonstrate the rule’s intent and to respond to U.S. EPA comments on other elements of the rule.

Staff estimates that the initial capital expenditure associated with the proposed amendments for TXI and CPCC would be approximately $75,000 and $620,000, respectively. TXI has discontinued open clinker storage and handling and will spend approximately $1 million dollars as a result of a Settlement Agreement with the District. Equipment replacement and annual costs for operation and maintenance, as well as sample analysis, would represent additional costs to the facilities. The present value of all costs when evaluated over a 20-year period (the life of the CPCC mine) is $2.6 million.
 

Public Process

Staff released the initial proposed amendments to Rule 1156 in mid-June 2008 and held a Public Workshop on July 2, 2008 in the community near the two cement manufacturing facilities. Approximately 1,000 notices were mailed. Supportive comments from the general public and concerns from industry regarding the total enclosure requirement were considered and addressed in the Draft Staff Report. Staff has been working closely with one of the cement manufacturing facilities on key technical elements of the proposal, such as additional controls on clinker material handling, monitoring issues, as well as technical and financial constraints. Staff also contacted representatives from various dome manufacturing companies, as well as tarp and wind fence manufacturers/distributors, to gather information regarding costs and feasibility.

Staff released a revised proposal and held a November 20, 2008 public consultation meeting. Staff also held a Town Hall meeting on December 3, 2008 to provide the communities near the two cement manufacturing facilities with an update regarding ambient monitoring, and to introduce a summary of the revised proposed amendments to Rule 1156. Staff continued to extensively work with CPCC on their concerns, such as rule applicability, compliance monitoring plan submittal and approval, exemptions, as well as guidelines and/or protocols. In addition, staff has been providing CPCC with technical assistance regarding wind monitoring and hexavalent chromium monitoring placement, laboratory certification for hexavalent chromium analysis, test methods, and associated costs.

Staff held seven meetings and numerous phone meetings with CPCC. TXI, although being informed throughout the process, has not been active in the process. Staff conducted one site visit at TXI and several visits at CPCC, and reported the rule amendment progress to the Stationary Source Committee at four meetings. Staff also addressed all public comments received by November 20, 2008 during the rule amendment process in the attached Staff Report.
 

Resolution of Issues

Staff has been working closely with CPCC to resolve many issues regarding rule applicability, exclusion of background levels in monitoring, criteria for PM10 monitoring, exemptions during high winds, wind fence removal for vehicle access and periodic maintenance at the storage barn, breakdown reporting, compliance monitoring plan, flexibility regarding total enclosure schedule, and cost analysis. In addition, staff has been providing technical assistance regarding monitoring equipment and locations, and lab certification. Staff will continue to work with the facilities.
 

Remaining Issues

CPCC does not believe the rule changes are warranted. They would like to reduce the hexavalent chromium monitoring schedule to quarterly after 36 months and to include a sunset provision for chrome monitoring in the rule.

Given the public health concerns associated with hexavalent chromium, staff believes that hexavalent chromium monitoring and sampling schedules currently proposed in PAR 1156 are appropriate and already allow the reduction of sampling frequency after twelve months of good performance and, therefore, should not be changed further at this time. Monitoring for hexavalent chromium was added to the proposal when the total enclosure requirement was removed from the original proposal. This monitoring is important to ensure public health protection. Staff is committed to provide annual status reports to the Stationary Source Committee and bi-annual reports to the Governing Board on rule implementation, including the monitoring provisions. Any further changes to the monitoring frequency and the appropriateness of such changes should be assessed in the future after several years of successful implementation of the controls envisioned in the rule leading to permanent reductions in hexavalent chromium emissions. Therefore, staff is likewise committed to reevaluation of the continued need of hexavalent chromium monitoring after 5 years of sampling and analysis. Additional key issues and responses are included in Attachment B to the Board Letter.
 

CEQA Impacts

In accordance with the California Environmental Quality Act (CEQA), the AQMD is the Lead Agency for PAR 1156 pursuant to its certified regulatory program (SCAQMD Rule 110). A Final Environmental Assessment (EA) (SCAQMD No. 050307JK, dated October 13, 2005) was previously prepared pursuant to CEQA, which identified “air quality” as the only environmental topic that might be adversely affected by the current rule. Since the currently proposed project would be within the scope of what was analyzed in the previous Final EA that was circulated for public review and comment and subsequently certified, the AQMD will rely on that previously certified Final EA for the currently proposed project pursuant to CEQA Guidelines §15153, because the circumstances of the projects are essentially the same. Greenhouse gases and PM2.5 analyses were not prepared as part of the Final EA, but were evaluated and found not to be significant in an Initial Study (IS) prepared for the proposed project (CEQA Guidelines §15153(c)). Since the circumstances of the currently proposed project are essentially the same as those analyses in the October 13, 2005 Final EA, and the greenhouse gases and PM2.5 impacts were concluded to be less than significant, no additional reasonable alternatives or mitigations are required. A Notice to Rely on the October 13, 2005 Final EA was circulated pursuant to CEQA Guidelines §15087 and the October 13, 2005 Final EA was made available for public review and comment on the environmental analysis for a 45-day period from July 5, 2008 to August 28, 2008 and no comments were received. A single comment was received on the IS asking for clarification on the PM2.5 analysis. The comment and response to comment is included as an appendix to the IS.

Staff has reviewed the modifications made to PAR 1156 since the circulation of the Notice to Rely and the October 13, 2005 Final EA for public review and concluded that they would not generate environmental impacts that would exceed those evaluated in the October 13, 2005 Final EA.

Since no comments were received that changed any conclusions from the October 13, 2005 Final EA or the IS prepared for PAR 1156, AQMD staff will continue to rely on the October 13, 2005 Final EA as the CEQA document for the proposed project.
 

Socioeconomic Impacts

PAR 1156 will affect only two facilities belonging to the cement manufacturing industry. Staff estimates that the present value of total costs, considering equipment replacement and annual costs, to be $2.6 million. The average annual cost of PAR 1156 is estimated to be $0.28 million between 2010 and 2025. PAR 1156 is projected to have 4 jobs forgone annually in the entire four-county economy between 2010 and 2025. The number of jobs forgone is insignificant relative to the size of total average annual employment in the four-county area and falls within the margin of error of the economic model used for the employment projection.
 

AQMP and Legal Mandates

The proposed amendments are not associated with a control measure in the 2007 AQMP. They are related to the District’s authority to regulate public nuisances, to control air toxics, and to control particulates. Further reductions of particulates from cement manufacturing facilities will limit exposure to PM10 and hexavalent chromium for public health protection.
 

Resource Impacts

Current AQMD resources are sufficient to implement Proposed Amended Rule 1156.
 

Attachments (EXE, ~1.9m)

1. Summary of Proposal
2. Key Issues and Responses
3. Rule Development Process
4. Key Contacts List
5. Resolution
6. Rule Language
7. Final Staff Report
8. Final Socioeconomic Assessment (March 2009)
9. Statement of Findings and Overriding Considerations (October 2005)
10. Final EA for Rule 1156 (October 2005)