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[ Statement of Proceedings | Calendar | Clerk of the Board ]
STATEMENT OF PROCEEDINGS
REGULAR MEETING OF THE AIR POLLUTION CONTROL DISTRICT
WEDNESDAY, NOVEMBER 4, 1998
Meeting was called to order at 10:10 a.m.
Present: Members Greg Cox, Chairman; Pam Slater, Vice Chair; Dianne Jacob; Ron Roberts and Bill Horn; also Sandra G. Carter, Assistant Clerk.
Approval of Statement of Proceedings/Minutes for Meeting of September 23, 1998.
ON MOTION of Member Slater, seconded by Member Jacob, the Members of the Air Pollution Control District approved the minutes for the Meeting of September 23, 1998.
AYES: Cox, Jacob, Slater, Roberts, Horn
Public Communication
(No speakers)
Agenda/ Minute Order Subject |
Air Pollution |
1. |
Noticed Public Hearing: Adoption of New Rule 6 - Minor Violations This item has been set for a 1:00 p.m. Time Certain |
2. |
Noticed Public Hearing: Repeal of Rule 67.8 - Dry Cleaning Facilities Using Halogenated Organic Solvent This item has been set for a 1:00 p.m. Time Certain | |
3. |
Noticed Public Hearing: Adoption of Amendments to New Source Review (NSR) Rules 20.1 - 20.4 Repealing the State No-Net-Increase Requirements Pursuant to State Law, Adoption of Related Findings, and Certification of the Final Environmental Impact Report for the Proposed Amendments This item has been set for a 1:00 p.m. Time Certain | |
4. |
Filed Communications |
_________________________________________________________________________________
APCD 1. SUBJECT: Noticed Public Hearing:
(Supv. Dist: All)
The District scheduled and advertised a public hearing on November 4, 1998 to discuss and receive public comments on proposed new Rule 6 (Minor Violations). Because of the Board's heavy agenda on November 4th, the District is requesting this item be continued to the December 16th Board Hearing.
Continue Adoption of New Rule 6 - Minor Violations to the December 16, 1998 Board meeting.
ON MOTION of Member Slater, seconded by Member Jacob, the Members of the Air Pollution Control Board took action as recommended, on Consent, continuing the hearing to December 16, 1998, 9:00 a.m.
AYES: Cox, Jacob, Slater, Roberts, Horn
APCD 2. SUBJECT: Noticed Public Hearing:
(Supv. Dist: All)
Rule 67.8 was adopted in 1981 to control emissions of perchloroethylene from dry cleaning operations. In 1993, the Air Resources Board adopted a more stringent Statewide Airborne Toxic Control Measure for such operations. It superseded the requirements of Rule 67.8 except for vented dry-to-dry and transfer machines installed before 1993. Rule 67.8 continued to apply to that equipment. The Airborne Toxic Control Measure required vented dry-to-dry and transfer machines to be replaced with closed-loop machines equipped with a non-vented refrigerated condenser by October 1, 1998. As a result, the Airborne Toxic Control Measure has now completely superseded Rule 67.8. Accordingly, Rule 67.8 is proposed to be repealed.
A public workshop for Rule 67.8 was held on September 15, 1998.
Repealing Rule 67.8 will have no fiscal impact on the District.
There is no impact on local businesses. All dry cleaning operations using perchloroethylene that were subject to Rule 67.8 are now regulated by a more stringent Statewide Airborne Toxic Control Measure.
1. Adopt the Resolution repealing Rule 67.8 and make appropriate findings:
(i) of necessity, authority, clarity, consistency, non-duplication and reference as required by Section 40727 of the State Health and Safety Code;
(ii) that repealing Rule 67.8 will alleviate a problem and will not interfere with the attainment of ambient air quality standards (Section 40001 of the State Health and Safety Code);
(iii) that an assessment of the socioeconomic impact of the proposed repeal is not required by Section 40728.5 of the State Health and Safety Code because repealing Rule 67.8 will not significantly affect air quality or emission limitations; and
(iv) that it is certain there is no possibility that the repeal of Rule 67.8 may have a significant adverse effect on the environment, and this action is exempt from the provisions of the California Environmental Quality Act pursuant to California Code of Regulations, Title 14, Section 15061 (b) (3).
2. Direct the Air Pollution Control Officer to request ARB to withdraw Rule 67.8 - Dry Cleaning Facilities Using Halogenated Organic Solvent, from the State Implementation Plan (SIP).
ON MOTION of Member Slater, seconded by Member Jacob, the Members of the Air Pollution Control Board closed the hearing and took action as recommended, on Consent, adopting Resolution No. 98-295, entitled: RESOLUTION REPEALING RULE 67.8 OF REGULATION IV OF THE RULES AND REGULATIONS OF THE SAN DIEGO COUNTY AIR POLLUTION CONTROL DISTRICT; and pursuant to Section 40727 of the Health and Safety Code, made the appropriate Findings as set out in Board of Supervisors Exhibit No. 1.
AYES: Cox, Jacob, Slater, Roberts, Horn
APCD 3. SUBJECT: Noticed Public Hearing:
(Supv. Dist: All)
The District recommends repealing State emission offset requirements by amending New Source Review (NSR) Rules 20.1 - 20.4. Offsets are emission reductions provided to mitigate emission increases from new and modified businesses. The State program requires such businesses having the potential to emit 15 tons or more annually of ozone precursors (oxides of nitrogen and volatile organic compounds) to offset emission increases. This requirement is referred to as the State no-net-increase program.
From a legal standpoint there is specific sequence to accomplish the recommendation. First, the Environmental Impact Report (EIR) must be considered and, if appropriate, certified. Second, the analysis supporting the repeal must be considered and, if appropriate, related findings made. Finally, action regarding the recommended amendments to the NSR Rules 20.1-20.4 can be considered.
In theory, if a new or modified source increases emissions after applying stringent controls required by NSR rules, offsetting those emissions with emission reductions occurring at the affected facility, or some other facility in the region, assures regionwide emissions do not increase. Further, there is a market created for offsets, providing an incentive for businesses to voluntarily reduce pollution beyond regulatory requirements. The resulting emission credits can then be sold to new or expanding facilities.
In practice, this does not happen in San Diego. Businesses can use emission reductions as offsets only if the reductions are not otherwise required by local, State, or federal mandates. It is difficult to create voluntary surplus emission reductions because of stringent State and federal control requirements. Almost all available offsets are from shutting down facilities or processes (shutdowns), occurring as a normal course of business activity, not voluntary emission reductions. Since the air quality benefit resulting from shutdowns occur regardless of the offset requirements, there is no air quality benefit realized when emission reductions resulting from shutdowns are used for offsets.
As a result, the State no-net-increase program results in costly paper transfers of emission credits from one company to another with little or no commensurate air quality benefit. In addition, sources creating offsets are becoming more reluctant to sell them because of their own future needs. This further drives up prices. A recent local market price for oxides of nitrogen offsets was nearly $30,000 per ton. This is about two and one-half times what local businesses are currently paying to reduce emissions ($12,900 per ton) by installing very stringent emission control devices to meet regulatory requirements.
An Environmental Impact Report (EIR) [Attachment II] has been prepared evaluating the proposed repeal of the State offset program. No significant adverse effects on the environment were identified. Pursuant to the California Environmental Quality Act, the Board must certify that the Final EIR reflects the Board's independent judgment of potential environmental consequences resulting from implementing the proposed amendments to the NSR rules. Attach-ment III is the Resolution certifying the Final EIR and making this finding.
State law (Health and Safety Code §§ 40918. 5 and 40918.6) allows a district to repeal its State no-net-increase program if stringent health-protective requirements are met by the district board and the Air Resources Board (ARB). The district board must find that: (1) every feasible control measure has been adopted or scheduled for adoption; (2) the no-net-increase program is not necessary to comply with the transport mitigation requirements of State law; and (3) the State no-net-increase program is not needed to meet State ambient air quality standards by the earliest practicable date. ARB must affirm the district board's determination. Finally, if a no-net increase program is repealed, the need for the program must be reviewed during each triennial attainment plan (Regional Air Quality Strategy) revision.
San Diego County does not transport air pollution to other California districts, so this is not an issue. The requirement for adopting or scheduling for adoption every feasible measure was satisfied when the Board approved the 1998 Triennial Regional Air Quality Strategy (RAQS) Revision on June 17, 1998 (APCB #4). Subsequently, on August 27, 1998, the ARB fully approved the RAQS Revision.
ARB issued guidance on the analysis needed to determine if a District's State no-net-increase program is necessary. The guidance states the critical test regarding the necessity of the no-net-increase program is ensuring program elimination would not halt or reverse an existing trend of decreasing total regionwide emissions. Pursuant to State law and guidance, the District developed an expected-case and an extremely conservative worst-case analysis (Attachment IV) to evaluate the potential emissions impact of repealing the no-net-increase program.
Expected-Case Analysis
Between 1995 and 2010 total regional volatile organic compounds (VOC) and oxides of nitrogen (NOx) emissions are projected to decrease from 98,842 to 67,087 (31,755) tons per year (32.1%) and from 86,505 to 51,721 (34,784) tons per year (40.2%), respectively, indicating substantial progress toward attaining the State ozone standard. If the State no-net-increase program is repealed, the expected-case analysis indicates total regional VOC and NOx emissions are projected to decrease between 1995 and 2010 from 98,842 to 67,108 (31,734) tons per year (32.1%) and from 86,505 to 51,757 (34,748) tons per year (40.2%), respectively. For VOC, the expected-case difference in reductions over the 15-year period due to repealing the no-net-increase program is 21 tons per year or 0.07%. For NOx, the expected-case difference is 36 tons per year or 0.1%. This represents a de minimis difference in emissions and demonstrates repealing the State no-net-increase program would not halt or reverse the existing trend of decreasing total regionwide emissions.
Worst-Case Analysis
The worst-case analysis indicates total regional VOC and NOx emissions are projected to decrease between 1995 and 2010 from 98,842 to 67,472 (31,370) tons per year (31.7%) and from 86,505 to 52,376 (34,129) tons per year (39.5%), respectively, if the no-net-increase program is repealed. For VOC, the worst-case difference in reductions is 385 tons per year or 1.2%. For NOx, the worst-case difference in reductions is 655 tons per year or 1.8%. This also represents a de minimis difference in emissions and demonstrates repealing the State no-net-increase program would not halt or reverse the existing trend of decreasing total regionwide emissions, even assuming worst-case emission impacts.
Based on the analysis, the District has prepared a Resolution making the findings required by State law before the State no-net-increase program can be repealed: (1) every feasible control measure has been adopted or scheduled for adoption; (2) the no-net-increase program is not necessary to comply with the transport mitigation requirements of State law; and (3) the State no-net-increase program is not needed to meet State ambient air quality standards by the earliest practicable date.
Following Board adoption, the certified Final EIR, findings and supporting documentation, and amendments to the NSR rules will be transmitted to ARB. Before the rule amendments can become effective, ARB must affirm the District's no-net-increase program is not necessary to achieve State ambient air quality standards by the earliest practicable date, and is not necessary to comply with the air pollution transport requirements of State law. ARB must make such determination within the 60-day period provided by State law.
If ARB fails to act within 60 days, repeal of the District's no-net-increase program will become effective. If the State no-net-increase program is repealed, federal emission offset requirements will still apply to new or modified businesses having potential to emit 50 tons or more per year of ozone precursors. All current requirements to install State Best Available Control Technology or federal Lowest Achievable Emission Rate control technology on new or modified equipment will also be retained.
The proposed amendments also delete emission offset requirements for carbon monoxide no longer required because the San Diego Air Basin has been redesignated by the federal Environmental Protection Agency (EPA) to an attainment area for carbon monoxide.
A public workshop on the proposed changes to the New Source Review Rules 20.1 -20.4 was held on April 18, 1997. The workshop report is Attachment VII.
Adopting these recommendations will have no fiscal impact on the District.
If Board and Air Resources Board actions repeal State no-net-increase requirements, future savings to new or modified businesses now subject to the requirements would be substantial. The collective cost of offsets to the business community is $1.3 to $3 million annually, based on historical offset demand and current offset prices. This does not include costs incurred from project delays while offsets are located and negotiated for purchase. Repealing no-net-increase requirements will eliminate these unnecessary costs and delays without affecting expeditious attainment of State ambient air quality standards.
(1) Consider the Final Environmental Impact Report (EIR) and adopt the Resolution: (a) finding that the Final EIR has been completed in compliance with the California Environmental Quality Act and that the Report reflects the independent judgment of the Board; and (b) certi-fying the Report as a true and complete statement of environmental impacts of implementing the proposed amendments to the New Source Review (NSR) Rules 20.1-20.4 repealing the State no-net-increase requirements and making findings that the proposed amendments will not have a significant adverse effect on the environment; and (c) finding that there is no evidence that adopting the proposed amendments will have potential for an adverse effect on wildlife resources or the habitat on which the wildlife depends, and, on the basis of substan-tial evidence, that the presumption of adverse effect in California Code of Regulations, Title 14, Section 753.5(d) has been rebutted.
(2) After certifying the Final EIR, consider the analysis required by State law demonstrating State no-net-increase requirements are not necessary for San Diego County to achieve and maintain State ambient air quality standards by the earliest practicable date, and adopt the Resolution making the required findings.
(3) After certifying the Final EIR and adopting the findings required by State law, adopt the Resolution amending NSR Rules 20.1-20.4 to make minor administrative revisions and repeal the offset requirements for carbon monoxide and the State no-net-increase requirements, to become effective upon either the Air Resources Board's (ARB) determination that the State no-net-increase program is not needed for San Diego County to achieve and maintain State ambient air quality standards by the earliest practicable date, or when the 60-day period provided by State law for the ARB to make such determination has passed and the ARB has not made a determination.
(4) Direct the Air Pollution Control Officer to forward the certified Final EIR, findings and supporting documentation to the ARB, and amendments to the NSR Rules, and request the ARB determine that a no-net-increase program is not needed for San Diego County to achieve and maintain State ambient air quality standards by the earliest practicable date.
ON MOTION of Member Slater, seconded by Member Jacob, the Members of the Air Pollution Control Board closed the hearing and took action as recommended, directed the Air Pollution Control Officer to draft a letter to the Air Resources Board to encourage them to act as expeditiously as possible; and adopted the following:
Resolution No. 98-296, entitled: RESOLUTION CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT FOR PROPOSED AMENDMENTS TO NEW SOURCE REVIEW RULES 20.1 THROUGH 20.4;
Resolution No. 98-297, entitled: RESOLUTION ADOPTING FINDINGS THAT STATE NO-NET-INCREASE REQUIREMENTS ARE NOT NECESSARY TO ACHIEVE AND MAINTAIN STATE AMBIENT AIR QUALITY STANDARDS IN SAN DIEGO COUNTY BY THE EARLIEST PRACTICABLE DATE;
Resolution No. 98-298, entitled: RESOLUTION AMENDING NEW SOURCE REVIEW RULES 20.1, 20.2, 20.3 AND 20.4 OF REGULATION IV OF THE RULES AND REGULATIONS OF THE SAN DIEGO COUNTY AIR POLLUTION CONTROL DISTRICT; and pursuant to Section 40727 of the Health and Safety Code, made the appropriate Findings as set out in Board of Supervisors Exhibit No. 1.
AYES: Cox, Jacob, Slater, Roberts, Horn
APCD 4. SUBJECT: Filed Communications
(Supv. Dist: All)
Board Policy A-72, Board of Supervisors Agenda and Related Process, authorizes the Clerk of the Board to prepare Filed Communications for Board of Supervisors' Official Records. Routine informational reports which need to be brought to the attention of the Board of Supervisors yet not requiring action are listed on this document. Filed Communications documents are on file in the Office of the Clerk of the Board.
Note and file.
ON MOTION of Supervisor Slater, seconded by Supervisor Jacob, the Board of Supervisors took action as recommended, on Consent.
AYES: Cox, Jacob, Slater, Roberts, Horn
There being no further business, the Board adjourned at 4:24 p.m.
SANDRA G. CARTER
Assistant Clerk of the Air Pollution Control Board
San Diego County Air Pollution
Control District
Notes by:
Galang
NOTE: This Statement of Proceedings sets forth all actions taken by the San Diego County Air Pollution Control Board on the matters stated, but not necessarily the chronological sequence in which the matters were taken up.
Dist 1 Greg Cox |
Dist 2 Dianne Jacob | Dist 3 Pam Slater
Dist 4 Ron Roberts | Dist 5 Bill Horn
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