BOARD MEETING DATE: October 1, 2010 AGENDA NO. 31

BOARD MEETING DATE: October 1, 2010
AGENDA NO. 31

REPORT:

Stationary Source Committee

SYNOPSIS:

The Stationary Source Committee met Friday, September 24, 2010. Following is a summary of that meeting. The next meeting will be October 15, at 10:30 a.m., in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file.

Dennis Yates, Chair,
Stationary Source Committee

Attendance

The meeting began at 10:35 a.m. Present were Dennis Yates, Jane Carney, Josie Gonzales, Bill Campbell (attended by VT) and Judith Mitchell (attended by VT). Absent was Ronald Loveridge.

INFORMATIONAL ITEMS

Update on Rule 445 Curtailment Program

Jill Whynot, Director of Strategic Initiatives, provided a briefing on outreach activities planned for the Rule 445 – Wood Burning Devices voluntary no-burn program which starts November 2010. If air quality is forecasted to be above the federal PM2.5 standard, residents will be asked not to use their wood-burning fireplaces. In November 2011, this would be a mandatory program for winter months (November-February).

Outreach for this winter includes AQMD Advisor articles in September and November, a press release in October, and updated information on the AQMD & Healthy Hearths websites. Ms. Whynot showed a screen shot of an interactive map that residents can use to see if their area has a “no-burn” called. An email list serve and revised 1-800-CUT-SMOG information will also be available. In 2011, an interactive toll-free phone system and additional press releases are planned. Staff will report to the Stationary Source Committee in March on lessons learned.

Supervisor Campbell asked for clarification on the number and geographic areas for advisories. Ms. Whynot indicated that fifteen to twenty advisories per year may be necessary and she also indicated that the forecast and no-burn areas are for specific areas, and do not include high elevation. Ms. Carney inquired about the TV weather / air quality reports and whether the no-burn information could be included. Sam Atwood, Media Manager, said that the existing partnership with Channel 2 has recently ended, but the station is continuing to provide the air quality information without the AQMD logo. AQMD could explore extending this to other television and radio stations.

Mayor Yates inquired about the gas log incentive program. Ms. Whynot indicated that over the last two years, 6,500 clean units have been installed through this program. $650,000 of the total $750,000 has been expended. An additional 1,000 units are likely to be installed by the end of this year. Mayor Yates suggested that staff come back to the Governing Board to request additional incentive funding and to extend the media partnership for no-burn forecasts to be included with air quality for news weather segments.
Reg. XXX – Title V Permits
Reg. XVII – Prevention of Significant Deterioration

Jill Whynot described proposed amendments to the AQMD’s rules for Prevention of Significant Deterioration (PSD) and Title V. Federal requirements for GHGs were “tailored” by a June 2010 federal action. The “tailoring rule” added thresholds for when these federal requirements would be triggered.

For Title V, staff is recommending changes to Regulation XXX – Title V Permits, to fold in GHG requirements. Currently, there are no federal requirements for existing or new stationary sources other than if PSD is triggered and conditions are imposed.

For PSD, staff is proposing a new rule (Rule 1714) to incorporate federal PSD requirements for GHGs by reference. The rule is specific with respect to which federal PSD requirements apply or do not apply.

The public consultation meeting was well attended. Key comments were to clarify which portions of PSD apply, which has been done, and input on whether to include state and local requirements on Title V permits. The time frame for this rule development is short, but necessary, as there are January 2 and July 1, 2011 compliance dates. Another consultation meeting is scheduled between the set hearing and board consideration in November.

Ms. Cathy Reheis-Boyd of WSPA stressed to the committee that these federal requirements are very important to industry as they have huge financial implications. She mentioned that there are several lawsuits related to the federal programs that are still pending.

Ms. Carney indicated that she would not participate in agenda #3 due to conflict of interest as U.S. Battery is a source of income for her, at which time she left the meeting.
Rule 1420.1 – Emissions Standard for Lead from Large Lead-Acid Battery Recycling Facilities

Susan Nakamura, Planning Manager, provided an update on PR1420.1 focusing on recent revisions and remaining key issues, such as rule approach being too prescriptive, use of alternative stack parameters to achieve compliance, point source control not being stringent enough and how future fines are to be used. Mr. Mike Buckhantz, Quemetco representative, commented on the company position why the emission limits for point sources should be lowered from 0.045 lb/hr to 0.003 lb/hr and asked for a 30-day delay to resolve this issue. Ms. Nakamura indicated that based on AQMD staff’s analysis, reducing the point source emissions to 0.003 lb/hr is not required in order to comply. Mohsen Nazemi, Deputy Executive Officer of Engineering & Compliance, also indicated that there is nothing in this rule preventing Quemetco to reduce their emissions to this level. The Committee chair communicated the request from the Board chair, which he concurred as well, to delay the rule for one month, so that the staff can analyze the proposal. Barbara Baird, District Counsel, indicated that the delay needs to be approved at the next Board meeting.

Ms. Carney returned to the meeting.
Clean Communities Plan Community Pilot Programs

Susan Nakamura provided an update of recent activities and revisions to the Clean Communities Plan. Staff added a measure to the 2010 Draft Clean Communities Plan to address additional business outreach activities. Staff explained that three areas of the Plan that will be updated is to better address how businesses will be an equal stakeholder in the development of Community Exposure Reduction Plans; the AQMD staff’s commitment to continue to seek new tools to address cumulative impacts in permitting; and establishing general boundaries for alternative assessment for use of acutely hazardous materials. Rita Loof of Radtech asked AQMD staff to encourage the use of cleaner products and expressed concerns about prohibition of use. AQMD staff indicated that the prohibition of use has been implemented in other AQMD rules, as well. Bill Lamar of California Small Business Alliance expressed concern for how businesses will be treated during “neighborhood walks” as part of the Community Exposure Reduction Plans. Mr. Nazemi explained that it is not the intent to go into businesses and there are already a number of EJ tours that other agencies and community members are engaged in, so this is not any different. Supervisor Gonzalez reassured Mr. LaMarr that the purpose of this measure is not oversight, but to partner with businesses to be economically positive.
Reg. XX – Regional Clean Air Incentives Market (RECLAIM)

Joe Cassmassi, Planning & Rules Manager, provided a brief update to the Committee summarizing the latest AQMD proposed amendments to Regulation XX, SOx RECLAIM. The presentation provided the highlights of the proposal for a 55 percent SOx shave. The presentation followed several days of intense discussions on the subject between the AQMD staff and WSPA members, the September 22, 2010 Refinery Committee Meeting, and continued joint analysis with WSPA to resolve differences in the proposed rule amendment cost effectiveness.

Mr. Cassmassi stated to the Committee that the update was focused to the non-refinery members of the SOx RECLAIM universe. He reiterated that AQMD staff has recently met with the acid manufacturers, received comments from glass manufacturers, and has scheduled a meeting with the cement manufacturers on September 30, 2010. Board Member Carney asked staff if there were outstanding issues that were brought up through these meetings and how the $50,000 per pound RTC price was selected. Mr. Cassmassi responded that the timing of the permitting process was an issue. Regulated industry wanted to be assured that installation of the required control equipment could proceed in time to meet the rule requirements. Dr. Tisopulos also commented on the market viability issue pointing out that the proposed rule amendment provides a mechanism to release pressure on RTC availability in the market if the per pound SOx credit price jumps too high. Under this scenario, the Governing Board has the option to release all or a portion of the targeted shaved emissions (for the year in question) back to the RECLAIM market to ensure market viability.

Ms. Cathy Reheis-Boyd of WSPA indicated that AQMD started at 65% shave and WSPA at 25% and came up to 35% and now WSPA is offering 40% SOx shave for a total SOx reduction of 4.7 Tons per Day (TPD), with 3 TPD by 2014 and 1.7 TPD by 2019. She indicated that the cost of compliance at AQMD’s proposed 55% SOx shave is $1.2 billion.
Rule 1175 – Control of Emissions from Manufacture of Polymeric Cellular (foam) Products

Naveen Berry, Planning & Rules Manager, presented a summary on Proposed Amended Rule (PAR) 1175. The proposed amendment will address rule deficiencies identified by U.S. EPA by incorporating administrative provisions to require source testing and record keeping that demonstrates compliance and ensures federal enforceability, while also correcting typographical errors and addressing other minor clarifications. No public comments were received following the presentation.