BOARD MEETING DATE: March 5, 2010
AGENDA NO. 40

PROPOSAL:

Amend Regulation IX – Standards of Performance for New Stationary Sources

SYNOPSIS:

Periodic amendments to Regulation IX incorporate new or amended federal standards by reference. Three actions enacted by U.S. EPA in 2009, for NSPS, are proposed for incorporation into Regulation IX. The NSPS actions cover: compliance alternatives for fossil-fuel-fired steam generating units, electric utility steam generating units, and industrial-commercial-institutional steam generating units; amendment of SO_x standards for certain stationary combustion turbines burning low-sulfur content biogas; and revision of some emission limits for certain equipment at coal preparation and processing plants. Affected industries include: industries using fossil-fuel-fired steam generators and industrial-commercial-institutional steam generating units; industries using stationary combustion turbines; and industries preparing and processing coal. 

COMMITTEE:

Stationary Source, January 22, 2010, Reviewed

RECOMMENDED ACTIONS:

Adopt the attached resolution:

1. Certifying the Notice of Exemption for Proposed Amended Regulation IX – Standards of Performance for New Stationary Sources; and

2. Amending Regulation IX – Standards of Performance for New Stationary Sources.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

U.S. EPA periodically promulgates NSPSs and NESHAPs. NSPSs govern the operation of all new, modified, or reconstructed sources of air pollution identified in Part 60 of the Code of Federal Regulations (CFR). NESHAPs govern the operation of new and existing sources specifically identified in Part 61 of the CFR that emit substances that have been designated as hazardous air pollutants pursuant to Section 112 of the Clean Air Act (CAA) Amendments. In order to administer and enforce NSPSs and NESHAPs at the local level, the AQMD Board initially adopted the NSPS federal standards by reference as Regulation IX, and the NESHAP federal standards as Regulation X, on December 3, 1976. The Board has since amended these regulations to incorporate new or amended standards as necessary. In 1997, U.S. EPA delegated and redelegated its authority for specific Sections of 40 CFR Parts 60 and 61, respectively, as listed in the April 23, 1997 Federal Register, Volume 62, No. 78, 19679 – 19682. Regulation IX was last amended April 3, 2009. Regulation X was last amended April 4, 2008. There were no amendments to Part 61 in 2009 and thus no proposed amendments for Regulation X are necessary.

The 1990 Amendments to the federal CAA called for U.S. EPA to establish maximum achievable control technology (MACT) standards for new and existing major sources of hazardous air pollutants, starting within two years of enactment and finishing within ten years. The MACT standards are published in the CFR as Part 63. U.S. EPA delegated authority for the implementation and enforcement of Part 63 to the AQMD on February 27, 1997. However, the AQMD has not established a separate regulation to encompass those standards but directly implements them for covered sources through delegation of the Part 70 program (Title V).

All new sources of air pollution and all modified or reconstructed sources of air pollution are required to comply with the more stringent of the applicable federal, state, and local standards, criteria, and requirements set forth in Regulation IX or other AQMD rules. These standards are in effect and enforceable by AQMD pursuant to §301, in conjunction with §§110 and 111(c)(1) of the federal CAA, regardless of whether AQMD incorporates them by reference into Regulation IX. Nonetheless, adoption of NSPS by reference into Regulation IX helps sources by providing a single point of reference for determining which federal and local requirements apply to their specific operations. 

This Board letter and its attachments serve as the staff report for proposed amendments to Regulation IX.

Regulation IX Proposal

Updates to reflect federal actions for 2009 are included in this Board package. Three NSPS actions, parts for which the AQMD has delegation of authority, were promulgated by U.S. EPA during 2009 and are proposed for incorporation by reference into Regulation IX. The nature of these actions include: 1) compliance alternatives for those entities operating electric utility steam generating units and industrial-commercial-institutional steam generating units with a PM limit of 0.030 lb/million British thermal units (MMBtu) or less that choose to voluntarily install and use PM continuous emission monitors (CEMs) to demonstrate compliance; 2) amendment of SO₂ emission standards for operators of new stationary combustion turbines burning biogas containing low amounts of sulfur-containing compounds; and amendment of emission limits for PM and opacity standards for thermal dryers, pneumatic coal cleaning equipment; and 3) coal handling equipment located at coal processing and preparation plants, and establishment of a SO₂ emission limit and combined NO_x and CO emissions limit for thermal dryers at these plants. 

Table 1 lists NSPSs currently proposed for incorporation by reference into AQMD Regulation IX. Changes are listed in chronological order. For a description of the actions, please see Attachment A.

Table 1. NSPS Proposed for Incorporation into Regulation IX

Public Workshops

U.S. EPA held public workshops with public comment periods as part of its rule development process. No public workshops were held by AQMD staff since the proposed amendments incorporate by reference existing federal requirements and do not significantly affect air quality or emissions limitations.

CEQA and Socioeconomic Impacts

The SCAQMD has reviewed the proposed project, the amendments to Regulation IX, pursuant to the CEQA Guidelines §15002 (k)(1) - three-step process and CEQA Guidelines §15061 – review for exemption, and has determined that the proposed amendments are exempt from CEQA pursuant to CEQA Guidelines §15268 – Ministerial Projects. The SCAQMD proposes to incorporate by reference federal NSPS requirements into Regulation IX. Because the SCAQMD exercises no discretion with regard to the proposed project, it is considered to be ministerially exempt. Furthermore, the proposed amendments are categorically exempt because they are considered actions to protect or enhance the environment pursuant to CEQA Guidelines §15308 – Class 8 Categorical Exemption. A Notice of Exemption will be prepared pursuant to CEQA Guidelines §15062 – Notice of Exemption and if approved, the Notice of Exemption will be filed with the county clerks of Los Angeles, Orange, Riverside and San Bernardino counties immediately following action on the proposed project.

No socioeconomic impact assessment was performed for the proposed amendments, which are verbatim adoption of federal NSPS requirements. The proposed amendments do not impose new requirements in addition to the federal regulations, and do not significantly affect air quality or emissions limitations. 

AQMP and Legal Mandates

These federal requirements are not included in the AQMP. The federal Clean Air Act §301, in conjunction with §§110 and 111(c)(1), authorize U.S. EPA to delegate authority to implement and enforce standards and related compliance periods for new, modified, or reconstructed sources of air pollution set forth in 40 CFR Part 60, to local air districts. Adoption of new and amended NSPSs into AQMD Regulation IX, by reference, formally recognizes AQMD’s authority to assist in the implementation and enforcement of these federal regulations at the local level. 

Implementation Plan

The proposed amendments do not materially affect the structure or function of existing programs associated with the implementation of Regulation IX - Standards of Performance for New Stationary Sources, or any other AQMD rules. Staff is available to assist facilities covered by the proposed amendments.

Resource Impacts

Current AQMD resources are sufficient to implement and enforce proposed Regulation IX amendments.

Attachments (EXE, 140k)

1. Summary of Proposed Amendments to Regulation IX

2. Resolution

3. Draft Rule Language

4. Notice of Exemption