AGENDA: 13
BAY AREA AIR QUALITY MANAGEMENT DISTRICT
Memorandum
To: Chairperson Attaway and
Members of the Board
 
From:   William C. Norton
Interim CEO/Executive Secretary
 
Date:   July 9, 2002
 
Re:   Public Hearing on Proposed Amendments to Regulation 9, Inorganic Gaseous Pollutants, Rule 10, Nitrogen Oxides and Carbon Monoxide from Boilers, Steam Generators and Process Heaters in Petroleum Refineries
 

RECOMMENDED ACTION:
Staff recommends the Board of Directors take the following actions:
  • Adopt proposed administrative amendments to Regulation 9, Rule 10, Nitrogen Oxides and Carbon Monoxide from Boilers, Steam Generators and Process Heaters in Petroleum Refineries;
  • Authorize the submittal of the “SIP Submittal Version” of Regulation 9, Rule 10 to EPA for inclusion in the California State Implementation Plan; and
  • Authorize the filing of a Notice of Exemption under the California Environmental Quality Act.
BACKGROUND
The District’s Regulation 9 Rule 10 contains emissions standards for nitrogen oxides (NOx) and carbon monoxide from boilers, steam generators, and process heaters located at petroleum refineries. The rule contains two different limits for NOx: a stringent Best Available Retrofit Control Technology (BARCT) limit required by state law; and a less stringent Reasonably Available Control Technology (RACT) limit required by federal law.

In 1996, the District submitted the federal NOx limits (Section 9-10-303) and the small unit requirements (Section 9-10-306) to EPA for inclusion in the State Implementation Plan (SIP). On July 24, 1997 (62 FR 39795), US EPA identified several deficiencies in the version of Regulation 9, Rule 10 that was submitted. These deficiencies prevented EPA from approving the District’s Rule into the SIP. On March 29, 2001, EPA formally issued its partial approval and partial disapproval of the rule.

The proposed administrative amendments to Regulation 9 Rule 10 are for the most part intended to correct the deficiencies noted by EPA. EPA and ARB have reviewed the proposed amendments and concur that the changes meet their requirements.

DISCUSSION
EPA’s partial disapproval is a consequence of two things: (1) the sections containing the RACT standards and the sections containing the test methods and record keeping requirements are not cross-referenced, and as a result (2) the SIP submittal did not include test methods and record keeping requirements. The proposed amendments are intended to correct the deficiencies cited by EPA and make the rule fully approvable into the SIP. The amendments apply the monitoring and record keeping requirements in the rule to those sources subject to the federal RACT standards in Sections 9-10-303 and 306.

Staff also proposes to delete the interim NOx standard in Section 9-10-302 because it was superceded by the final NOx standard in Section 9-10-301, effective July 1, 2002. In addition, a few relatively minor changes, corrections, and clarifications have been included in this proposal.

Staff proposes to delete the word “Interim” from the title of Section 9-10-303. This is a new change that was not included in the version of the proposed rule that was sent with the Public Hearing Notice to the Air Resources Board and the public. When this rule was originally written, the federal NOx standard in Section 303 was called an interim standard because it became effective before the more stringent final standard in Section 301. Since both standards are in effect now, the word interim is no longer necessary, and should be deleted.

Staff recommends that the Board authorize the issuance of a Notice of Exemption for this rule change under the California Environmental Quality Act (CEQA). The District has determined that these amendments to Regulation 9; Rule 10 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, the SIP submittal version of the rule, a staff report, and the Federal Register notice of EPA's limited approval / limited disapproval are attached.

Respectfully submitted,

William C. Norton
Interim CEO/Executive Secretary

Prepared by:   Greg Stone
Reviewed by:  Peter Hess





Attachment #1 - Proposed Amendments to Regulation 9, Rule 10
Attachment #2 - Proposed Regulation 9, Rule 10 SIP Submittal
Attachment #3 - Staff Report
Attachment #4 - Federal Register Notice