AGENDA: 10
BAY AREA AIR QUALITY MANAGEMENT DISTRICT
Memorandum
To: Chairperson Attaway and
Members of the Board
 
From:   William C. Norton
Executive Officer/APCO
 
Date:   November 8, 2002
 
Re:   Public Hearing on Proposed Amendments to Regulation 8, Organic Compounds, Rule 18, Equipment Leaks and Approval of A Notice of Exemption Pursuant to the California Environmental Quality Act
 

RECOMMENDED ACTION:
Staff recommends the Board of Directors take the following actions:

A) Adopt proposed administrative amendments to Regulation 8, Organic Compounds, Rule 18, Equipment Leaks;
B) Authorize the submittal of Regulation 8, Rule 18 to EPA for inclusion in the California State Implementation Plan; and
C) Authorize the filing of a Notice of Exemption under the California Environmental Quality Act
BACKGROUND
Regulation 8, Rule 18 regulates organic compound leaks from valves, flanges, connectors, pumps, compressors, pressure relief valves, and other equipment at Bay Area refineries, chemical plants, bulk plants, and bulk terminals. The proposed amendments would correct a minor oversight in the rule noted by US EPA in their limited approval/limited disapproval of the rule (66 Fed. Reg. 51568, October 10, 2001). The proposed amendments would explicitly require EPA approval of alternative compliance plans and are intended to allow EPA to fully approve the rule into the California State Implementation Plan for the national ozone standard.
DISCUSSION
EPA disapproved Regulation 8, Rule 18 because it does not require explicit EPA prior approval of alternative compliance plans under Sections 8-18 405 and 406 of the rule. As the rule is currently written, any alternative emission reduction plan must be submitted to EPA for comments only; the plan would only require the approval of District’s APCO for implementation. EPA policy prohibits provisions in SIP rules that would allow state officials to alter SIP requirements without EPA approval. Although, EPA approval would be sought for an alternative compliance program for Maximum Achievable Control Technology (MACT) standards, the proposed amendments would explicitly require EPA approval of the alternative compliance plan. EPA approval does not constitute a new or undue burden.

Staff proposes to modify two subsections of the rule to address this issue. Section 405.3 – Alternative Emission Reduction Plan – would be modified to remove the requirement that the plan be submitted to US EPA for comments during the 60-day public comment period. Section 405.4 would require explicit written approval from EPA, Region IX prior to approval by the District APCO. Section 406 – Interim Compliance – would be modified to require that the facility meet the limits contained in Section 8-18-301 through 307 until receipt of written approvals of the alternative emission reduction plan from both the District APCO and the EPA.

Staff recommends that the Board authorize the issuance of a Notice of Exemption for this rule change under the California Environmental Quality Act (CEQA). Staff has determined that these amendments to Regulation 8, Rule 18 are exempt from provisions of the California Environmental Quality Act pursuant to State CEQA Guidelines, Section 15061, subd. (b)(3). The amendments are purely administrative in nature and are intended to correct oversights in the rule. The amendments do not affect emission standards or rates. It can be seen with certainty that this rulemaking project will have no environmental impacts and is therefore exempt under Guidelines Section 15061, subd. (b)(3).

The proposed amendments, a staff report, and the Federal Register notice of EPA’s limited approval/limited disapproval are attached.

Respectfully submitted,

William C. Norton
Executive Officer/APCO

Prepared by:   Victor Douglas
Reviewed by:  Christine Schaufelberger, Peter Hess





Attachment #1 - Proposed Amendments to Regulation 8, Rule 18
Attachment #2 - Draft Staff Report
Attachment #3 - EPA Federal Register Notice