The South Coast Air Quality Management District (SCAQMD)
Board Meeting
BOARD MEETING: November 14, 1997
PROPOSAL: Adopt Proposed Rule 2503 - Enforceable Procedures
SYNOPSIS: Proposed Rule 2502 will expand on the enforceable procedures
guidelines developed in Rule 2501 - Air Quality Investment Program (AQIP)
and establish monitoring, recordkeeping, and reporting (MRR) requirements
for applying AQIP emission reductions as an alternative to compliance
with the emission limitation requirements of Regulation IV - Prohibitions
and Regulation XI - Source Specific Standards. The proposed rule will
also specify the quantification methodologies necessary to determine
the amount of AIP emission reductions required.
COMMITTEE: Mobile Source, October 17, 1997, Reviewed
RECOMMENDED ACTION:
1. Certify that Proposed Rule 2503 - Enforeceable Procedures is exempt
from the requirements of the California Environmental Quality Act (CEQA),
and
2. Adopt Proposed Rule 2503 - Enforceable Procedures.
Background
The AQMD is developing a series of market-based incentive rules under
Regulation XXV - Intercredit Trading. One element of the proposed Intercredit
Trading Program which was adopted May 9, 1997, is Rule 2501 - Air Quality
Investment Program (AQIP). Under Rule 2501, Regulation IV, XI and Rule
2202 sources that meet the eligibility requirements can voluntarily
submit a specified fee into the AQIP which will be used to fund projects
that will produce equivalent or greater emission reductions.
Contingent to the participation of Regulation IV and XI sources in the
Rule 2501 AQIP, is the availability of an adopted AQMD rule specifying
enforceable procedures for using AQIP emission reductions. Thus, as
part of the Resolution to Rule 2501, AQMD staff is committed to develop
a rule prior to January 1, 1998, that specifies enforceable procedures
for using AQIP emission reductions as required under subdivision (e)
of Rule 2501. Proposed Rule 2503 - Enforceable Procedures is the fulfillment
of that commitment.
Proposal
Proposed Rule 2503 specifies monitoring, recordkeeping, and reporting
(MRR) requirements based on the guidelines outlined in Rule 2501. In
addition to establishing enforceable MRR requirements, the proposed
rule specifies the quantification methodologies for determining the
amount of emission reductions required.
Monitoring Requirements
For most sources, Proposed Rule 2503 establishes a four-step hierarchy
for appropriate monitoring test methods and frequency. The hierarchy
is: (1) Continuous Emissions Monitoring Systems (CEMS) if required under
the existing applicable Regulation IV or XI rule, (2) monitoring requirements
specified in the applicable Regulation IV or XI rule, (3) monitoring
requirements specified in the applicable Permit to Construct/Operate,
and (4) appropriate test or laboratory methods identified in Rule 2503
paragraph (e)(6). Monitoring of the emission limitation for sources
using VOC-Containing Materials will be accomplished by requiring that
documentation be provided specifying the VOC content of the material
which meets the labeling requirements of Rule 443.1 - Labeling of Materials
Containing Organic Solvents. Documents which may meet this requirement
include Laboratory Analysis Reports, Material Safety Data Sheets, and
Technical Data Sheets.
Recordkeeping Requirements
The recordkeeping provisions of Proposed Rule 2503 are designed to be
consistent with the existing recordkeeping requirements of Regulation
IV, XI, and XIII. For instance, recordkeeping requirements for sources
using VOC-Containing Materials in coating or solvent processes are based
on Rule 109 - Recordkeeping for Volatile Organic Compound Emissions
and other similar requirements pursuant to Regulation XIII.
Reporting Requirements
Rule 2501 requires that summaries quantifying the amount of AQIP emission
reductions used and remaining be submitted to the Executive Office at
six and twelve months from the Starting Investment Date in an approved
format which summarizes the sources' AQIP emission reduction activity
on a monthly basis.
Quantification Methodologies
The proposed rule specifies the methodologies for determining the amount
of emission AQIP emission reductions. Thus, as part of the Resolution
to Rule 2501, AQMD staff is committed to develop a rule prior to January
1, 1998, that specifies enforceable procedures for using AQIP emission
reductions as required under subdivision (e) of Rule 2501. Proposed
Rule 2503 - Enforceable Procedures is the fulfillment of that commitment.
Proposal
Proposed Rule 2503 specifies monitoring, recordkeeping, and reporting
(MRR) requirements based on the guidelines outlined in Rule 2501. In
addition to establishing enforceable MRR requirements, the proposed
rule specifies the quantification methodologies for determining the
amount of emission reductions required.
Monitoring Requirements
For most sources, proposed Rule 2503 establishes a four-step hierarchy
for appropriate monitoring test methods and frequency. The hierarchy
is: (1) Continuous Emissions Monitoring Systems (CEMS) if required under
the existing applicable Regulation IV or XI rule, (2) monitoring requirements
specified in the applicable Regulation IV or XI rule, (3) monitoring
requirements specified in the applicable Permit to Construct/Operate,
and (4) appropriate test or laboratory methods identified in Rule 2503
paragraph (e)(6). Monitoring of the emission limitation for sources
using VOC-Containing Materials will be accomplished by requiring that
documentation be provided specifying the VOC content of the material
which meets the labeling requirements of Rule 443.1 - Labeling of Materials
Containing Organic Solvents. Documents which may meet this requirement
include Laboratory Analysis Reports, Material Safety Data Sheets, and
Technical Data Sheets.
Recordkeeping Requirements
The recordkeeping provisions of Proposed Rule 2503 are designed to be
consistent with the existing recordkeeping requirements of Regulation
IV, XI, and XIII. For instance, recordkeeping requirements for sources
using VOC-Containing Materials in coating or solvent processes are based
on Rule 109 - Recordkeeping for Volatile Organic Compound Emissions
and other similar requirements pursuant to Regulation XIII.
Reporting Requirements
Rule 2501 requires that summaries quantifying the amount of AQIP emission
reductions used and remaining be submitted to the Executive Officer
at six and twelve months from the Starting Investment Date in an approved
format which summarizes the sources' AQIP emission reduction activity
on a monthly basis.
Quantification Methodologies
The proposed rule specifies the methodologies for determining the amount
of emission reductions required to demonstrate compliance with Rule
2501. The emission quantification methodologies for the proposed rule
establish the manner in which the amount of required AQIP emission reductions
are to be calculated. The proposed rule provides two types of equations
for determining the amount of required AQIP emission reductions: (1)
for non-coating operations; and (2) for coating operations. These equations
are dependent on the activity of the operation and are based on the
difference between the emission limitations (concentration, percent
by weight, or emission rate of a pollutant) during the Investment Period
and currently allowed under existing requirements. Additional equations
are specified for (1) determining the AQIP emission reduction remaining;
and (2) the amount of adjustment to the AQIP emission reductions used
due to the quantity of VOC-containing waste recycled.
Policy Issues
Over the past month, the AQMD staff has worked with environmental groups,
business representatives, agencies (EPA and ARB), and other interested
parties to resolve issues related to Proposed Rule 2503 to the degree
feasible. Based on discussions with these parties and revisions to Proposed
Rule 2503, the AQMD staff believes that it has addressed several issues
that were outstanding in the Board Letter to the October 10, 1997 Set
Hearing package for Proposed Rule 2503. Although not all the issues
have been totally resolved, Table 1 provides a summary of these issues
and the manner in which they were addressed.
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Use of AQIP Emission Reductions as an Alternative to Monitoring Requirements Specified in Reg. IV and XI Rules | Resolution commits staff to further evaluate the use of emission credits as an alternative to MRRs during the development of the Intercredit Trading Program. |
Use of Material Safety Data Sheets (MSDS) to Document the VOC Content of Materials Used in the Program | Resolution commits staff to work with EPA to further evaluate the effectiveness of using MSDS and Rule 443.1 - Labeling of Materials Containing Organic Solvents to demonstrate compliance with the VOC content in VOC-Containing Materials. |
Use of Executive Officer Discretion in Evaluating and Applying Method 301 to Alternate MRRS | Resolution commits staff to work with EPA to develop an efficient process to approve alternative test methods. |
Only Reg. IV and XI Rules Which Are SIP Approved Should Be References in the Monitoring Methods of PR 2503 | Resolution commits staff to work with EPA to develop an efficient process to approve test methods in locally amended AQMD rules for the SIP. |
Although a number of issues under Proposed Rule 2503 have been addressed, there remain outstanding issues on which interested parties and/or staff disagree. Table 2 summaries the three outstanding issues associated with Proposed Rule 2503 and characterizes the general position and comments from environmental groups, business representatives, and involves agencies (EPA and ARB). The three key outstanding issues are as follows: (1) Waste Adjustment; (2) Performance Adjustment Factor; and (3) source testing frequency. AQMD staff will continue to work with interested parties on identified issues. A more detailed discussion of these issues and other comments received is contained in the Final Staff Report.
AQMP and Legal Mandates
Proposed Rule 2503 satisfies the commitment that the Board made in the Resolution to Rule 2501 to develop a rule prior to January 1, 1998, that specifies enforceable procedures for using AQIP emission reductions as required under subdivision (e) of Rule 2501.
CEQA and Socioeconomic Analysis
The AQMD has reviewed the proposed project pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15002(k) - Three Step Process, to determine which type of CEQA document to prepare for the proposed action. The AQMD has determined that the proposed project is exempt from CEQA pursuant to CEQA Guidelines Section 15321 - Enforcement Actions by Regulatory Agencies, since the activity is covered by this Class 21 exemption for actions to enforce a rule adopted by a regulatory agency.
The Notice of Exemption, prepared pursuant to state CEQA Guidelines Section 15062 - Notice of Exemption, will be filed with the county clerks of Los Angeles, Orange, Riverside and San Bernardino counties immediately following the adoption of the proposal.
The AQMD has determined that the proposed rule would not generate any additional costs on affected sources because it specifies current MRR requirements as dictated in existing regulations for a voluntary program. As such, the proposed rule will not result in any adverse socioeconomic impacts.
Implementation Plan
Not applicable
Resource Impacts
Not applicable