# Antelope Valley Air Quality Management District

Final 

# Staff Report

Rescission and Federal Negative Declaration of 

# Rule 1119 – Petroleum Coke Calcining Operations –

Oxides Of Sulfur

Adopted on January 18, 2011

43301 D IVISION 

### S T 

### ., S UITE 

### 206, L ANCASTER 

### , C ALIFORNIA 

### 93535-4649 P HONE 

### (661) 723-8070 FAX (661) 723-3450This page intentionally left blank.AVAQMD Rule 1119 – Petroleum Coke Calcining Operations TC-1

Final Staff Report, 03/10/11 

### STAFF REPORT TABLE OF CONTENTS Rescission and Federal Negative Declaration of Rule 1119 – Petroleum Coke Calcining Operations – Oxides Of Sulfur

I. PURPOSE OF STAFF REPORT ...................

................................................... .....................1

II. EXECUTIVE SUMMARY.........................

................................................... ........................1

III. STAFF RECOMMENDATION ......................

................................................... ...................1
IV. LEGAL REQUIREMENTS CHECKLIST..............

................................................... ..........2
V. DISCUSSION OF LEGAL REQUIREMENTS ..........

................................................... ......3 A. REQUIRED ELEMENTS/FINDINGS..................

................................................... ......3 1. State Findings Required for Adoption of Rule s & Regulations ......................3 a. Necessity ...................................

................................................... ........3 b. Authority...................................

................................................... ........3 c. Clarity.....................................

................................................... ...........3 d. Consistency.................................

................................................... ......3 e. Non-duplication .............................

................................................... ...3 f. Reference...................................

................................................... ........4 g. Public Notice & Comment, Public Hearing..... ....................................4 2. Federal Elements (SIP Submittals, Other Fede ral Submittals)........................4 a. Satisfaction of Underlying Federal Requireme nts ...............................4 b. Public Notice and Comment................... .............................................4 c. Availability of Document.................... .................................................4 d. Notice to Specified Entities ................ .................................................4 e. Public Hearing...............................

................................................... .....5 f. Legal Authority to Adopt and Implement ...... ......................................5 g. Applicable State Laws and Regulations Were F ollowed.....................5 B. WRITTEN ANALYSIS OF EXISTING REQUIREMENTS... ......................................5
C. ECONOMIC ANALYSIS ...........................

................................................... ................5 1. General.....................................

................................................... .....................5 2. Incremental Cost Effectiveness.............

................................................... .......5 D. ENVIRONMENTAL ANALYSIS (CEQA) ...............

................................................... 6
E. SUPPLEMENTAL ENVIRONMENTAL ANALYSIS ......... ........................................6 1. Potential Environmental Impacts.............

................................................... .....6 2. Mitigation of Impacts.......................

................................................... .............6 3. Alternative Methods of Compliance...........

................................................... ..6TC

- 2 AVAQMD Rule 1119 – Petroleum Coke Calcining Operations Final Staff Report, 03/10/11 F. PUBLIC REVIEW ...............................

................................................... ........................6

VI. TECHNICAL DISCUSSION ......................

................................................... ......................6
A. SOURCE DESCRIPTION ..........................

................................................... ................6
B. EMISSIONS ...................................

................................................... .............................7 C. CONTROL REQUIREMENTS........................

................................................... ...........7
D. PROPOSED RULE SUMMARY.......................

................................................... .........7
E. SIP HISTORY.................................

................................................... .............................7 1. SIP History.................................

................................................... ...................7 2. SIP Analysis................................

................................................... ..................8 Appendix A – Federal Negative Declaration and Rule 1119 Iterated Version............................A- 1 Appendix B - Public Notice Documents ...............

................................................... ...................B-1 Appendix C - Public Comments and Responses .........

................................................... .............C-1 Appendix D - California Environmental Quality Act D ocumentation ....................................... .D-1 Appendix E - Bibliography..........................

................................................... .............................E-1AVAQMD Rule 1119 – Petroleum Coke Calcining Operations 1

Final Staff Report, 03/10/11 

### STAFF REPORT Rescission and Federal Negative Declaration of Rule 1119 - Petroleum Coke Calcining Operations – Oxides Of Sulfur

I. PURPOSE OF STAFF REPORT A staff report serves several discrete purposes. I ts primary purpose is to provide a summary and background material to the members of the Governing Board. This allows the members of the Governing Board to be fully informed before making any required decision. It also provides the documentation necessary for the Governing Board to make any findings, which are required by law to be made prior to the approval or adoption of a docu ment. In addition, a staff report ensures that the correct procedures and proper documentation for app roval or adoption of a document have been performed. Finally, the staff report provides evid ence for defense against legal challenges regarding the propriety of the approval or adoption of the do cument.
II. EXECUTIVE SUMMARY On July 1, 1997 the Antelope Valley Air Pollution C ontrol District (AVAPCD) was created pursuant to statute (former Health & Safety (H&S) Code §40106, A.B. 266-Knight Ch. 542, statutes of 1996) and assumed all air pollution control responsibilities from the South Coast Air Quality Management District (SCAQMD) for the area of Los Angeles Count y outside the South Coast Air Basin (SCAB). The SCAQMD rules in effect within the jurisdiction of the AVAPCD remained in effect until the AVAPCD Governing Board superceded, amended or resci nded them. On January 1, 2002 the Antelope Valley Air Quality Management District (AV AQMD) was created pursuant to statute (H&S Code §41300 et seq.) to replace the AVAPCD. Once a gain the rules in effect at the time of the change remained in effect until the AVAQMD Governing Board superceded, amended or rescinded them. The SCAQMD adopted Rule 1119 on March 2, 1979 and is th e current version in the rule book. The provisions of Rule 1119 apply to the operation of petroleum coke calcining equipment. The AVAQMD has determined that there are no petroleum c oke calcining operations located within the District and none are anticipated in the future. T he AVAQMD is therefore proposing to rescind Rule 1119 and adopt a Federal Negative Declaration (FND) . Since Rule 1119 was submitted as part of the State Implementation Plan (SIP) and a FND is also r equired to be a part of the SIP, the rescission and adoption need to be submitted to the United States Environmental Protection Agency (USEPA) as a SIP revision.
III. STAFF RECOMMENDATION Staff recommends that the Governing Board of the AV AQMD adopt, after conducting a public hearing, a resolution approving the rescission of Rule 1119 – Petroleum Coke Calcining Operations – Oxides Of Sulfur and adoption of a Federal Negative Declaration. The Governing Board of the Antelope Valley Air Qual ity Management District rescinded Rule 1119 – Petroleum Coke Calcining Operations – Oxides Of Sul fur and adopted a Federal Negative Declaration for this source category on January 18, 2011.2 AVAQMD Rule 1119 – Petroleum Coke Calcining Operations Final Staff Report, 03/10/11 IV. LEGAL REQUIREMENTS CHECKLIST The findings and analysis as indicated below are re quired for the procedurally correct rescission of Rule 1119 - Petroleum Coke Calcining Operations – Oxides Of Sul fur and the adoption of a FND. Each item is discussed, if applicable, in Section V below. Copies of documents are included in the appropriate Appendix.

FINDINGS REQUIRED FOR RULES & REGULATIONS
X Necessity
X Authority
X Clarity
X Consistency
X Non-duplication
X Reference
X Public Notice & Comment
X Public Hearing REQUIREMENTS FOR STATE IMPLEMENTATION PLAN SUBMISSION (SIP):
X Public Notice & Comment
X Availability of Document
X Notice to Specified Entities (State, Air Districts, USEPA, Other States)
X Public Hearing
X Legal Authority to adopt and implement the document.
X Applicable State laws and regulations were followed. ELEMENTS OF A FEDERAL SUBMISSION
X Elements as set forth in applicable Federal law or regulations.
CALIFORNIA ENVIRONMENTAL QUALITY ACT REQUIREMENTS (CEQA):
N/A Ministerial Action
X Exemption
N/A Negative Declaration
N/A Environmental Impact Report
N/A Appropriate findings, if necessary.
X Public Notice & Comment
SUPPLEMENTAL ENVIRONMENTAL ANALYSIS (RULES & REGULATIONS ONLY):
X Environmental impacts of compliance.
N/A Mitigation of impacts.
N/A Alternative methods of compliance.
OTHER:
N/A Written analysis of existing air pollution control requirements
X Economic Analysis
X Public ReviewAVAQMD Rule 1119 – Petroleum Coke Calcining Operations 3

Final Staff Report, 03/10/11 V. DISCUSSION OF LEGAL REQUIREMENTS A. REQUIRED ELEMENTS/FINDINGS
This section discusses the State of California stat utory requirements that apply to the proposed rescission of Rule 1119 and the adoption of a FND. These are actions, that need to be performed, and/or information, that must be provide d in order to rescind the rule in a procedurally correct manner. 1. State Findings Required for Adoption of Rules & Regulations: Before adopting, amending, or repealing a rule or r egulation, the AVAQMD Governing Board is required to make findings of necessity, au thority, clarity, consistency, nonduplication, and reference based upon relevant info rmation presented at the hearing. The information below is provided to assist the Gov erning Board in making these findings. a. Necessity: The rescission of Rule 1119 and the adoption of a F ND was necessary because there are currently no sources within the jurisdict ion of the AVAQMD subject to the provisions of the rule and none are anticipated in the future. b. Authority: AVAQMD has the authority pursuant to H&S Code §4070 2 to adopt, amend or repeal rules and regulations. c. Clarity: The rescission of Rule 1119 and the adoption of a F ND are clear in that they are written so that the persons subject to the rule can easily understand the meaning. d. Consistency: The rescission of Rule 1119 and the adoption of a F ND is in harmony with, and not in conflict with or contradictory to, any state law or regulation, federal law or regulation, or court decisions because there are cu rrently no sources within the jurisdiction of the AVAQMD subject to the provision s of Rule 1119 and none are anticipated in the future. e. Non-duplication: The rescission of Rule 1119 and the adoption of a F ND do not impose the same requirements as an existing state or federal law or regulation because there are currently no sources within the jurisdiction of the AVAQMD subject to the provisions of Rule 1119 and none are anticipated in the future.4 AVAQMD Rule 1119 – Petroleum Coke Calcining Operations Final Staff Report, 03/10/11 f. Reference: AVAQMD has the authority pursuant to H&S Code §4070 2 to adopt, amend or repeal rules and regulations. g. Public Notice & Comment, Public Hearing: Notice for the public hearing for the proposed resc ission of Rule 1119 and the adoption of a FND was published December 17, 2010. See Appendix “B” for a copy of the public notice. See Appendix C for copi es of comments, if any, and AVAQMD responses. 2. Federal Elements (SIP Submittals, Other Federal Submittals). Submittals to USEPA are required to include various elements depending upon the type of document submitted and the underlying federal la w which requires the submittal. The information below indicates which elements are required for the rescission of Rule 1119 and the adoption of a FND and how they were sa tisfied. a. Satisfaction of Underlying Federal Requirements: Since Rule 1119 was submitted as part of the State Implementation Plan (SIP) and a FND is also required to be a part of the SIP, the rescission and FND must be submitted to the USEPA as a SIP revision.
b. Public Notice and Comment: Notice for the public hearing for the proposed resc ission of Rule 1119 and the adoption of a FND were published December 17, 2010. See Appendix “B” for a copy of the public notice. c. Availability of Document: Copies of the proposed rescission of Rule 1119 and the adoption of a FND and the accompanying draft staff report were made avail able to the public on December 3, 2010. d. Notice to Specified Entities Copies of the proposed rescission of Rule 1119 and the adoption of a FND and the accompanying draft staff report were mailed to all affected agencies, including but not limited to the California Air Res ources Board (CARB) and USEPA on December 3, 2010.AVAQMD Rule 1119 – Petroleum Coke Calcining Operations 5

Final Staff Report, 03/10/11

e. Public Hearing: A public hearing to consider the proposed rescissio n of Rule 1119 and the adoption of a FND was held on January 18, 2011. f. Legal Authority to Adopt and Implement: The AVAQMD has the authority pursuant to H&S Code § 40702 to adopt, amend, or repeal rules and regulations and to do su ch acts as may be necessary or proper to execute the duties imposed upon the AV AQMD. g. Applicable State Laws and Regulations Were Follo wed: Public notice and hearing procedures pursuant to H& S Code §§40725-40728 have been followed. See Section (V)(A)(1) above fo r compliance with state findings required pursuant to H&S Code §40727. See Section (V)(B) below for compliance with the required analysis of existing r equirements pursuant to H&S Code §40727.2. See Section (V)(C) for compliance w ith economic analysis requirements pursuant to H&S Code §40920.6. See Se ction (V)(D) below for compliance with provisions of the California Enviro nmental Quality Act (CEQA). B. WRITTEN ANALYSIS OF EXISTING REQUIREMENTS H&S Code §40727.2 requires air districts to prepare a written analysis of all existing federal air pollution control requirements that apply to the sa me equipment or source type as the rule proposed for modification by the district. The res cission of Rule 1119 and the adoption of a FND will eliminate a rule for which there are no so urces within the jurisdiction of the AVAQMD and none are anticipated in the future. The refore the preparation of a written analysis of existing pollution control requirements that apply to the same equipment or source type is not required.
C. ECONOMIC ANALYSIS
1. General No economic impact is anticipated by the rescission of Rule 1119 and the adoption of a FND. There are currently no sources within the jur isdiction of the AVAQMD subject to Rule 1119 and none are anticipated in the future.
2. Incremental Cost Effectiveness Pursuant to H&S Code §40920.6, incremental cost eff ectiveness calculations are required for rules and regulations which are adopte d or amended to meet the California Clean Air Act requirements for Best Available Retro fit Control Technology (BARCT) or “all feasible measures” to control volatile comp ounds, oxides of nitrogen or oxides of sulfur.6 AVAQMD Rule 1119 – Petroleum Coke Calcining Operations Final Staff Report, 03/10/11 The rescission of Rule 1119 and the adoption of a F ND are not subject to incremental cost effectiveness calculations because this rule d oes not impose BARCT or “all feasible measures.” D. ENVIRONMENTAL ANALYSIS (CEQA) Through the process described below, it was determi ned that a Notice of Exemption would be the appropriate CEQA process for the rescission of Rule 1119 and the adoption of a FND. 1. The rescission of Rule 1119 and the adoption of a FND meet the CEQA definition of “project.” They are not “ministerial ” actions. 2. The rescission of Rule 1119 and the adoption of a FND are exempt from CEQA review because there are currently no sources withi n the jurisdiction of the AVAQMD subject to the provisions of Rule 1119 and n one are anticipated in the future, and there is not potential that the res cission might cause the release of additional air contaminants or create any adverse e nvironmental impacts, a Class 8 categorical exemption (14 Cal. Code Reg. §15308) applies.
E. SUPPLEMENTAL ENVIRONMENTAL ANALYSIS 1. Potential Environmental Impacts There are currently no sources within the jurisdict ion of the AVAQMD subject to Rule 1119 and there is not potential that the rescission and adoption of a FND might cause the release of additional air contaminants or creat e any adverse environmental impacts. 2. Mitigation of Impacts
N/A 3. Alternative Methods of Compliance
N/A
F. PUBLIC REVIEW See Staff Report Section (V)(A)(1)(g) and (2)(b), a s well as Appendix B.
VI. TECHNICAL DISCUSSION
A. SOURCE DESCRIPTIONAVAQMD Rule 1119 – Petroleum Coke Calcining Operations 7

Final Staff Report, 03/10/11 Rule 1119 was adopted by the SCAQMD on March 2, 197 9 to achieve the ambient air standards for sulfur dioxide emissions from coke ca lciners 1 . The rule required sulfur dioxide reductions of 80 percent in response to the SCAQMD Sulfur Dioxide/Sulfate Control Study. The AVAQMD assumes the rule was adopted because the re was a major source in this source category operating within the SCAQMD. This rule wa s submitted by SCAQMD for inclusion into the SIP, which at that time included the area now known as the AVAQMD. Because this rule is in the AVAQMD SIP, and the AVAQMD has ident ified that it does not have any sources of the type covered by the provisions of Rule 1119 and is anticipating none in the future, the AVAQMD is proposing to rescind Rule 1119 and to ado pt a FND. There are no USEPA Control Techniques Guidelines (C TG) or Alternative Control Technology (ACT) guidance documents for this source category.
B. EMISSIONS There are currently no sources subject to Rule 1119 ; therefore no environmental impacts are anticipated from the rescission of the rule and the adoption of a FND. C. CONTROL REQUIREMENTS There are currently no sources subject to Rule 1119 ; therefore, no additional emission control methods are required.
D. PROPOSED RULE SUMMARY This section gives a brief overview of the proposed rescission of Rule 1119. The AVAQMD has identified that it does not have any sources of the type covered by the provisions of Rule 1119 and is anticipating none in the future. There fore, the AVAQMD is proposing to rescind Rule 1119 and to adopt a FND.
E. SIP HISTORY 1. SIP History. Prior to 1975 the original air district for the Ant elope Valley region was the Los Angeles County APCD that had jurisdiction covering the enti re county of Los Angeles. In 1975, the Southern California Air Pollution Control Distr ict (So. Cal. APCD) was created. The So. Cal. APCD was created by a Joint Powers Agr eement (JPA) between Los Angeles, Orange, Riverside and San Bernardino Count ies to replace the previous countywide air pollution control districts for thos e counties. On February 1, 1977, pursuant to statute (Cal. Stats. 1976, Ch 324 p. 81 5) the SCAQMD was created with an initial jurisdiction that only included areas of Lo s Angeles, Orange, Riverside and San Bernardino Counties contained within the South Coas t Air Basin (SCAB). Outlying

1 SCAQMD Proposed Rule 1119 – Coke Calcining Operations – Oxides Of Sulfur Board Summary, 02/15/1979.8 AVAQMD Rule 1119 – Petroleum Coke Calcining Operations Final Staff Report, 03/10/11 areas remained under the So. Cal. APCD (The legisla tion was thereafter amended to allow non SCAB areas to “opt in”. Los Angeles Coun ty exercised this option and thus the Antelope Valley became a part of SCAQMD. Also on February 1, 1977 the CARB issued Executive Order G-73 (1977) which adopted a “rule book” for those non-SCAB areas of Los Angeles, Riverside and San Bernardino Counties. CARB submitted the G73 rulebook on behalf of the “county” districts. By its terms Executive Order G-73 (1977) was only e ffective until the non-SCAB areas took other action. On February 22, 1977 the JPA fo rming the So. Cal. APCD was formally dissolved. By the terms of the JPA upon d issolution each county would regain its county air pollution control district with a ju risdiction of the non-SCAB areas of the county and the applicable rules being the So. Cal. APCD’s rules in effect upon the date of dissolution. On July 1, 1997 the Antelope Valle y Air Pollution Control District (AVAPCD) replaced the SCAQMD as the agency with jur isdiction over the Los Angeles County portion of the Mojave Desert Air Bas in (MDAB). On January 1, 2002 the AVAPCD was replaced by the AVAQMD. Pursuant to both statutory changes, the rule and regulations of the predecessor district we re retained until the Governing Board adopted, amended or rescinded them. At the first m eeting of the both the AVAPCD and the AVAQMD, the respective Governing Boards reaffir med all the rules and regulations in effect at the time the agency changed. The jurisdiction of the AVAPCD and the AVAQMD were specified in the statutes as the portion of the Los Angeles County contained wit hin the MDAB. The MDAB was formerly known as the Southeast Desert Air Basin (S EDAB). In 1997 the SEDAB was split into the MDAB and the Salton Sea Air Basin. Descriptions of these air basins can be found in 17 Cal. Code Regs. §§60109 and 60144. Since USEPA adopts SIP revisions in California as effective within jurisdi ctional boundaries of local air districts, when the local air district boundaries change the S IP as approved by USEPA for that area up to the date of the change remains as the SI P in that particular area. Thus, upon creation of the AVAPCD on July 1, 1997 the AVAPCD a cquired the SIP applicable to the Antelope Valley portion of the SCAQMD that was effective as of June 30, 1997. Likewise the AVAQMD acquired the SIP that was effec tive in the jurisdiction of the AVAPCD as of December 31, 2001. Therefore, the SIP history for this region is based upon the rules adopted, effective, and approved for the Antelope Valley by SCAQMD. Rule 1119 was originally adopted on March 2, 1979 b y the SCAQMD. This version is the version in the SIP for the AVAQMD at 46 FR 4745 1, September 28, 1991. 2. SIP Analysis. The District will request that CARB request Rule 11 19 to be removed from the SIP and replaced with a Federal Negative Declaration.AVAQMD Rule 1119 – Petroleum Coke Calcining Operations A

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### APPENDIX "A" Federal Negative Declaration

and 

### Rule 1119 – Petroleum Coke Calcining Operations – Oxides Of Sul fur Iterated Version

The iterated version is provided so that the change s to an existing rule may be easily found. The man ner of differentiating text is as follows: 1. Shaded text identifies new or revised language. 2. Lined out text identifies language which is bei ng deleted. 3. Normal text identifies the current language of t he current rule which will remain unchanged by the adoption of the proposed amendments.
4. Italicized text

identifies explanatory material that is not part o f the proposed language.A-2 AVAQMD Rule 1119 – Petroleum Coke Calcining Operations Final Staff Report, 03/10/11 This page intentionally left blank.AVAQMD Rule 1119 – Petroleum Coke Calcining Operations A

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AVAQMD Rule 1119 1119-1 Petroleum Coke Calcining Operations - Oxides Of Sul fur D1, 11/17/2010 

## RULE 1119 Petroleum Coke Calcining Operations

- Oxides Of Sulfur

(a) A person shall not operate petroleum coke calcining equipment unless the uncontrolled emissions of oxides of sulfur from such basic equip ment, expressed as sulfur dioxide (SO 2 ), are reduced by at least 80 percent. (b) Any equipment owner or ope rator subject to the provisions of section (a) of t his rule shall comply with the following schedule of increments of progress: (1) By December 1, 1980, submit to the Executive Office r an application for Permit to Construct describing at a minimum the step s that will be taken to achieve compliance with this rule. (2) By June 1, 1981, award the contract for an emission control system, or issue purchase orders for the component parts to accomplish emissi on control. (3) By September 1, 1981, initiate on

- site c onstruction or installation of equipment to reduce or control emissions. (4) By May 1, 1983, complete on

- site construction or installation of equipment to r educe or control emissions. (5) By July 1, 1983, assure final compliance with the p rovisions of this rule.

[SIP: Approved 9/28/81, 46 FR 47451, 40 CFR 52.220 (c)(88)(iii)(A)]1119-2 AVAQMD Rule 1119 Petroleum Coke Calcining Operations - Oxides of Sul fur D1, 11/17/2010 This Page Intentionally Left Blank.AVAQMD Rule 1119 – Petroleum Coke Calcining Operations B

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### APPENDIX "B" PUBLIC NOTICE DOCUMENTS

1. Proof of Publication for Notice of Public Hearing – Antelope Valley Press, 12/17/10B-2 AVAQMD Rule 1119 – Petroleum Coke Calcining Operations Final Staff Report, 03/10/11 This page intentionally left blank.AVAQMD Rule 1119 – Petroleum Coke Calcining Operations B

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### APPENDIX "C"

PUBLIC COMMENTS AND RESPONSES
No comments received at this time.C-2 AVAQMD Rule 1119 – Petroleum Coke Calcining Operations Final Staff Report, 03/10/11 This page intentionally left blank.AVAQMD Rule 1119 – Petroleum Coke Calcining Operations D

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### APPENDIX "D"

CALIFORNIA ENVIRONMENTAL QUALITY ACT

DOCUMENTATION

1. Notice of Exemption – Los Angeles County, posted 01/26/11D-2 AVAQMD Rule 1119 – Petroleum Coke Calcining Operations Final Staff Report, 03/10/11 This page intentionally left blank.AVAQMD Rule 1119 – Petroleum Coke Calcining Operations D

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### APPENDIX "E" BIBLIOGRAPHY

The following documents were consulted in the prepa ration of this staff report and the proposed rescission of Rule 1119:

1. SCAQMD Proposed Rule 1119 adoption summary, 02/15/1 979 2. 46 FR 47451, 09/28/91 (SCAQMD SIP approval)E-2 AVAQMD Rule 1119 – Petroleum Coke Calcining Operations Final Staff Report, 03/10/11 This page intentionally left blank.