April 8, 2008

Air Pollution Control Board

800 South Victoria Avenue Ventura, CA 93009

SUBJECT: PUBLIC HEARING TO ADOPT PROPOSED AMENDMENTS TO RULE 74.29, SOIL DECONTAMINATION OPERATIONS, RULE 23, EXEMPTIONS FROM PERMIT, AND RULE 44, EXEMPTION EVALUATION FEE

RECOMMENDED ACTIONS:

1. Approve CEQA Notice of Exemption for Proposed Amended Rule 74.29, Soil Decontamination Operations, Rule 23, Exemp tions from Permit, and Rule 44, Exemption Evaluation Fee (Attachments 1, 2 and 3)

2. Approve and adopt statutory findings re lated to Proposed Am ended Rule 74.29, Soil Decontamination Operations, Rule 23, Exemp tions from Permit, and Rule 44, Exemption Evaluation Fee (Attachments 4, 5 and 6).

3. Approve and adopt proposed amendmen ts to Rule 74.29, So il Decontamination Operations, Rule 23, Exemptions from Per mit, and Rule 44, Exemption Evaluation Fee (Attachments 7, 8 and 9).

4. Direct the Clerk of the Board to forward tw o certified minute orders , and an affidavit of publication of the public hearing notice, for all proposed actions to the Air Pollution

Control District.

5. Direct Air Pollution Control Officer or his de signee to file three Notices of Exemption pursuant to CEQA Guidelines Section 15062.

FISCAL / MANDATES IMPACT:

Mandatory: Yes. Implements the provisions of Health and Safety Code section 40914(b)(2),

"All Feasible Measures."

Fiscal Impact: No impact; as proposed, revision to Rule 44 removes an exemption evaluation fee that is no longer required.

STATEMENT OF MATTER FOR BOARD CONSIDERATION:Air Pollution Control Board Page 2 April 8, 2008

Background

Rule 74.29 was originally adopt ed on October 19, 1995, and revised on January 8, 2002. The rule applies to situations where gasoline, diesel fuel or jet fuel has leaked into soil. Usually, defective storage tanks or defective piping cause the leaks. The rule establishes procedures by which reactive organic compound (ROC) emissions are minimized during the aeration, treatment or removal of this petroleu m fuel contaminated soil.

In this revision, Rule 74.29 is being expanded to codify existing District policy requirements for the excavation, transportation, and handling of act ive and inactive petroleum fuel contaminated soil. The proposed amendments to Rule 74.29 are necessary because the District's Air Quality Management Plan is required to expeditiously implement "every feasible measure" to reduce ozone precursor emissions by at least 5 percen t annually (including reactive organic compounds, or ROC) to attain the California ambient oz one standard. See Health and Safety Code §40914(b)(2). In addition, staff proposes to imp rove Rule 74.29 by clar ifying language and adding definitions where necessary.

Proposed Revisions

Revisions to Rule 74.29, Soil Decontamination Operations

The main revisions to Rule 74.29 are summarized below:

● Prohibit the aeration (on and off site) of soil c ontaining gasoline, diesel fuel, or jet fuel, that emits reactive organic compounds (ROC), as measured by a certified organic vapor analyzer, in excess of 50 parts per million by volume (ppmv). In addition, a process for measuring ROC concentrations with a porta ble analyzer is added (Subsection B.1).

● Prohibit excavation of an underground storage tank and/or transfer piping unless ROC emissions are monitored with a certified organic vapor analyzer at least once every 15 minutes during the excavation period. Soil with emission measurements exceeding 50 ppmv is considered contaminated. Provisi ons for the covering of inactive exposed contaminated soil is included (Subsection B.2).

● Reword Subsection B.4 for clarity.

● Amend Subsection B.5 to require notice for either storage tank or transfer piping excavation from any applicable storage tank operator.

● Require that contaminated soil in active st orage piles be kept visibly moist by water spray, treated with a vapor suppressant, or covered with continuous heavy duty (4 mils or greater) plastic sheeting or other covering. Similar requirements apply to inactive storage piles and excavated soil. Require the removal of contaminated soil within 30 days unless

on-site treatment is initiated (Subsections B.6, B.7 & B.8).

● Establish requirements for the transport of contaminated soil by truck (Subsection B.9).Air Pollution Control Board Page 3 April 8, 2008

● Delete the exemption in Subsection C.2 for projects located further than 1,000 feet from the outer boundary of a school and with emi ssions of less than 200 pounds of ROCs per rolling twelve month period. This exemption has never been used.

Revisions to Rule 23, Exemptions From Permit and Rule 44, Exemption Evaluation Fee

As noted above, the exemption in Subsection C. 2 of Rule 74.29 is proposed for deletion. As a result, Rule 23, Subsection F.23, must be revised to reflect the change. Also, it its proposed to revise the subsection to apply only to gasoline, di esel fuel and jet fuel. In addition, the fee in Rule 44, Subsection B.4, assessed to defray the cost of calculating compliance with the Rule 74.29, Subsection C.2, exemption, is no longer necessa ry and is proposed for deletion. Finally, Rule 23, Subsection J.12, an exemption for nucle ar activity, is being reworded and updated.

Discussion

Throughout the rule, requirements for the use of an approved portable measurement device are being added. Certif ied organic vapor analyzers are subject to the provisions of EPA Method 21.

Emission Reduction and Cost Effectiveness

The proposed revisions to Rule 74.29 include re quirements for the excavation, transportation, and handling of active and inactive soil. Most of the changes involve covering exposed contaminated soil. Because the concentration of ROC in contaminated soil varies considerably, emissions (and emission reductions) are difficult to predict. Staff estimates that an individual soil cleanup operation may take three years to comp lete and involve the de struction or treatment of a total of about 8,350 pounds of ROC (2,800 lb per year) per site. After making various assumptions, including an average of 36 decontamination sites per year, staff estimated that 50 tons per year (tpy) of ROC will be reduced as a result of the proposed revisions to Rule 74.29.

To determine cost effectiveness, the cost of plastic sheeting was estimated. Assuming that covers are changed four times a year, the total annual cost per site is $1,944. Assuming 36 sites per year, the total county-wide annual cost is $70,000. Therefore, the cost-effectiveness of covered piles is $1,400 per ton of RO C reduced. These results relate well to the District's Best Available Control Technology cost effectiven ess threshold of $18,000 pe r ton of ROC reduced.

Public Participation

Staff held a public workshop for the proposed revisions to Rule 74.29 on November 7, 2006.

Section D was revised as a result of this meetin g; additional information about the meeting is available on page 8 of the staff report. Written comments from the Boeing Company dated November 27, 2006, are addressed on pages 8 through 10 of the staff report.

The Advisory Committee considered the rules on both January 23, 2007, and January 29, 2008. Staff considered suggestions from the 2007 meetin g and revised the propose d revisions to Rule 74.29. As a result, the Advisory Committee unanimously recommended adoption of proposed revisions to Rules 74.29, 23 and 44 at the 2008 meeting.Air Pollution Control Board Page 4 April 8, 2008

PROPOSED FINDINGS:

Health and Safety Code Sections 40001( c), 40703, 40727, 40728.5 and 40920.6(a) direct that, prior to adopting the proposed revisions to Ru le 74.29 and Rule 23, your Board adopt findings of necessity, authority, clarity, consistency, nondupli cation, reference, cost-effectiveness, incremental cost-effectiveness, and socioeconomic impacts, based upon relevant info rmation presented at the hearing. Health and Safety Code Sec tion 40727.2 requires a written analysis, comparison, and consideration of existing air pollution regulati ons that apply to the same type of source. Therefore, if your Board approves the propos ed revisions to Rule 74.29 and Rule 23, it is recommended that your Board also adopt the pro posed findings set forth in Attachments 1 and 2.

Health and Safety Code Section 40727 directs th at, prior to adopting the proposed revision to Rule 44, your Board adopt findings of necessity, authority, clarity, consistency, nonduplication, and reference, based upon relevant information presented at the hearing. Therefore, if your Board approves the proposed revisions to Rule 44, it is recommended that your Board also adopt the proposed findings set forth in Attachment 3.

The proposed revisions to Rule 74.29 have been de termined to be categorically exempt from the requirements of the Californi a Environmental Quality Act (CEQA) under Sections 15307 (Actions by Regulatory Agencies for Protec tion of Natural Resources) and 15308 (Actions by Regulatory Agencies for Protection of the Envi ronment) of the CEQA Guidelines. A Notice of Exemption with respect to this CEQA ex emption is included as Attachment 4.

Proposed revisions to Rule 23 and Rule 44 have been deter mined to be exempt from the requirements of the Californi a Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that this change may have a significant effect on the environment. A Notice of Exemption with respect to this CEQA exem ption is included as Attachments 5 and 6.

This proposal has been reviewed by County Couns el. If you have any questions, please contact

me at 645-1440 or Don Price at 645-1407.

MICHAEL VILLEGAS

Air Pollution Control Officer

Attachments: 1. Proposed CEQA Notice of Exemption - Rule 74.29 2. Proposed CEQA Notice of Exemption - Rule 23 3. Proposed CEQA Notice of Exemption - Rule 44 4. Proposed Legislative Findings – Rule 74.29 5. Proposed Legislative Findings – Rule 23 6. Proposed Legislative Findings – Rule 24 7. Proposed Rule 74.29 (strikeout/underline, 2/29/08)Air Pollution Control Board Page 5 April 8, 2008

8. Proposed Rule 74.29 (clean version, 2/29/08) 9. Proposed Rule 23 (strikeout/underline, 1/18/07) 10. Proposed Rule 44 (strikeout/underline, 12/6/06) 11. Final Staff Report (2/29/08) 12. Advisory Committee Voting Record (1/23/07) 13. Advisory Committee Voting Record (1/29/08)