Bay Area Air Quality Management District April 5, 2006 12-12-1 

### REGULATION 12 MISCELLANEOUS STANDAR DS OF PERFORMANCE RULE 12 FLARES AT PETROLEUM REFINERIES

INDEX

12-12-100 GENERAL

12-12-101 Description 12-12-110 Exemption, Organic Li quid Storage and Distribution 12-12-111 Exemption, Marine Vessel Loading Terminals 12-12-112 Exemption, Wast ewater Treatment Plants 12-12-113 Exemption, Pumps

12-12-200 DEFINITIONS

12-12-201 Emergency 12-12-202 Feasible 12-12-203 Flare 12-12-204 Flare Minimization Plan (FMP) 12-12-205 Gas 12-12-206 Petroleum Refinery 12-12-207 Prevention Measure 12-12-208 Reportable Flaring Event 12-12-219 Responsible Manager 12-12-210 Shutdown 12-12-211 Startup 12-12-212 Thermal Oxidizer 12-12-213 Vent Gas

12-12-300 STANDARDS

12-12-301 Flare Minimization

12-12-400 ADMINISTRATIVE REQUIREMENTS

12-12-401 Flare Minimization Plan Requirements 12-12-402 Submission of Flare Minimization Plans 12-12-403 Review and Approval of Flare Minimization Plans 12-12-404 Update of Flare Minimization Plans 12-12-405 Notification of Flaring 12-12-406 Determination and Reporting of Cause 12-12-407 Deleted April 5, 2006 12-12-408 Designation of Confidential Information

12-12-500 MONITORING AND RECORDS

12-12-501 Water Seal Integrity MonitoringBay Area Air Quality Management District April 5, 2006 12-12-2 

### REGULATION 12 MISCELLANEOUS STANDAR DS OF PERFORMANCE RULE 12 FLARES AT PETROLEUM REFINERIES

(Adopted July 20, 2005)

12-12-100 GENERAL

12-12-101 Description: The purpose of this rule is to reduce emissions from flares at petroleum refineries by minimizing the frequ ency and magnitude of flaring. Nothing in this rule should be construed to compromise refinery operations and practices with regard to safety. 12-12-110 Exemption, Organic Li quid Storage and Distribution: The provisions of this rule shall not apply to flares or thermal oxidizers used to control emissions exclusively from organic liquid storage vessels subject to Regulation 8, Rule 5 or exclusively from loading racks subject to Regulation 8 Rules 6, 33, or 39. 12-12-111 Exemption, Marine Vessel Loading Terminals: The provisions of this rule shall not apply to flares or thermal oxidizers used to control emissions exclusively from marine vessel loading terminals subject to Regulation 8, Rule 44. 12-12-112 Exemption, Wastewater Treatment Systems: The provisions of this rule shall not apply to thermal oxidizers used to control emissions exclusively from wastewater treatment systems subject to Regulation 8, Rule 8. 12-12-113 Exemption, Pumps: The provisions of this rule shall not apply to thermal oxidizers used to control emissions exclusively from pump seals subject to Regulation 8, Rule 18. This exemption does not apply when emis sions from a pump are routed to a flare header.

12-12-200 DEFINITIONS: For the purposes of this rule, the following definitions apply:

12-12-201 Emergency: A condition at a petroleum refinery beyond the reasonable control of the owner or operator requiring immediate corr ective action to restore normal and safe operation that is caused by a sudden, infrequent and not reasonably preventable equipment failure, natural disaster, act of war or terrorism or external power curtailment, excluding power curtailment due to an interruptible power service agreement from a utility. 12-12-202 Feasible: Capable of being accomplished in a successful manner within a reasonable period of time, taking into acc ount economic, environmental, legal, social and technological factors. 12-12-203 Flare: A combustion device that uses an open flame to burn combustible gases with combustion air provided by uncontrolled ambient air around the flame. This term includes both ground-level and elevated flares. When used as a verb, the term “flare” means the combustion of vent gas in a flare. 12-12-204 Flare Minimization Plan (FMP): A document intended to meet the requirements of Section 12-12-401. 12-12-205 Gas: The state of matter that has neither independent shape nor volume, but tends to expand indefinitely. Gas includes aerosols and the terms “gas” and “gases” are interchangeable. 12-12-206 Petroleum Refinery: A facility that processes petroleum, as defined in the North American Industrial Classification Stand ard No. 32411 and including any associated sulfur recovery plant. 12-12-207 Prevention Measure: A component, system, procedure or program that will minimize or eliminate flaring. 12-12-208 Reportable Flaring Event: Any flaring where more than 500,000 standard cubic feet per calendar day of vent gas is flared or where sulfur dioxide (SO 2 ) emissions are greater than 500 pounds per day. For flares that are operated as a backup,Bay Area Air Quality Management District April 5, 2006 12-12-3 staged or cascade system, the volume is determined on a cumulative basis; the total volume equals the total of vent gas flared at each flare in the system. For flaring lasting more than one calendar day, each day of flaring constitutes a separate flaring event unless the owner or operat or demonstrates to the satisf action of the APCO that the cause of flaring is the same for two or more consecutive days. A reportable flaring event ends when it can be demonstrat ed by monitoring required in Section 12- 12-501 that the integrity of the water seal has been maintained sufficiently to prevent vent gas to the flare tip. For flares wit hout water seals or water seal monitors as required by Section 12-12-501, a reportable flaring event ends when the rate of flow of vent gas falls below 0.5 feet per second. (Amended April 5, 2006) 12-12-209 Responsible Manager: An employee of the facilit y or corporation who possesses sufficient authority to take the actions required for compliance with this rule. 12-12-210 Shutdown: The intentional cessation of a petrole um refining process unit or a unit operation within a petroleum refining process unit due to lack of feedstock or the need to conduct periodic maintenance, replacement of equipment, repair or other operational requirements. A process unit includes subsets and components of the unit operation. Subsets and components in cludes but are not limited to reactors, heaters, vessels, columns, towers, pumps, compressors, exchangers, accumulators, valves, flanges, sample stations, pipelines or sections of pipelines. 12-12-211 Startup: The setting into operation of a petroleum refining process unit for purposes of production. A process unit includes s ubsets and components of the unit operation. Subsets and components includes but are not limited to reactors, heaters, vessels, columns, towers, pumps, compressors, exch angers, accumulators, valves, flanges, sample stations, pipelines or sections of pipelines. 12-12-212 Thermal Oxidizer: An enclosed or partially enclosed combustion device, other than a flare, that is used to oxidize combustible gases. 12-12-213 Vent Gas: Any gas directed to a flare excludin g assisting air or steam, flare pilot gas, and any continuous purge gases.

12-12-300 STANDARDS

12-12-301 Flare Minimization: Effective November 1, 2006, flaring is prohibited unless it is consistent with an approved FMP and all commitments due under that plan have been met. This standard shall not apply if the APCO determines, based on an analysis conducted in accordance with Section 12-12-406, that the flaring is caused by an emergency and is necessary to prevent an accident, hazard or release of vent gas directly to the atmosphere.

12-12-400 ADMINISTRATIVE REQUIREMENTS

12-12-401 Flare Minimiza tion Plan Requirements: The owner or operator of a petroleum refinery with one or more flares subject to this rule shall submit to the APCO a FMP in accordance with the schedule in Section 12-12-402. The FMP shall be certified and signed by a Responsible Manager and shall include, but not be limited to: 401.1 Technical Data: A description and technical information for each flare that is capable of receiving gases and the up stream equipment and processes that send gas to the flare including: 1.1 A detailed process flow diagram accurately depicting all pipelines, process units, flare gas recovery sy stems, water seals, surge drums and knock-out pots, compressors and other equipment that vent to each flare. At a minimum, this shall include full and accurate as-built dimensions and design capacities of the flare gas recovery systems, compressors, water seals, surge drums and knockout pots. 1.2 Full and accurate descriptions including locations of all associated monitoring and control equipment.Bay Area Air Quality Management District April 5, 2006 12-12-4 401.2 Reductions Previously Realized: A description of the equipment, processes and procedures installed or im plemented within the last five years to reduce flaring. The description s hall specify the year of installation. 401.3 Planned Reductions: A description of any equipment, processes or procedures the owner or operator plans to install or implement to eliminate or reduce flaring. The description shall spec ify the scheduled year of installation or implementation. 401.4 Prevention Measures: A description and evaluation of prevention measures, including a schedule for the expeditious implementation of all feasible prevention measures, to address the following: 4.1 Flaring that has occurred or may reasonably be expected to occur during planned major maintenance activities, including startup and shutdown. The evaluation shall include a review of flaring that has occurred during these activities in the past five years, and shall consider the feasibility of performing these activities without flaring. 4.2 Flaring that may reasonably be ex pected to occur due to issues of gas quantity and quality. The evaluation sh all include an audit of the vent gas recovery capacity of each fl are system, the storage capacity available for excess vent gases, and the scrubbing capacity available for vent gases including any limitati ons associated with scrubbing vent gases for use as a fuel; and shall consider the feasibility of reducing flaring through the recovery, treatment and use of the gas or other

means. 4.3 Flaring caused by the recurrent failure of air pollution control equipment, process equipment, or a process to operate in a normal or usual manner. The evaluation shall consider the adequacy of existing maintenance schedules and protocols for such equipment. For purposes of this Section, a failure is recurrent if it occurs more than twice during any five year period as a result of the same cause as identified in accordance with Section 12-12-406. 401.5 Any other information requested by the APCO as necessary to enable determination of compliance with applicable provisions of this rule. Failure to implement and maintain any equipment, processes, procedures or prevention measures in the FMP is a violation of this section. 12-12-402 Submission of Fl are Minimization Plans : On or before August 1, 2006, the owner or operator of a petroleum refinery with one or more flares subject to this rule shall submit a FMP as required by Section 12- 12-401. On or before November 1, 2005 and every three months thereafter until a comp lete FMP is submitted, the owner or operator shall provide a status report detailing progress towards fulfilling the requirements of Section 12-12-401. Upon th e submission of each status report, the APCO may require a consultation regarding the development of the plan to ensure that the plan meets the requir ements of Section 12-12-401. 12-12-403 Review and Approval of Flare Minimization Plans: The procedure for determining whether the FMP meets the applicable requireme nts of this regulation is as follows: 403.1 Completeness Determination: Within 45 days of receipt of the FMP, the APCO will deem the plan complete if he determines that it includes the information required by Section 12-12- 401. If the APCO determines that the proposed FMP is not complete, the APCO will notify the owner or operator in writing. The notification will specify the basis for this determination and the required corrective action. 403.2 Corrective Action: Upon receipt of such notific ation, the owner or operator shall correct the identified deficienc ies and resubmit the proposed FMP within 45 days. If the APCO determines that the owner or operator failed to correct any deficiency identified in t he notification, the APCO will disapprove the FMP. 403.3 Public Comment: The complete FMP (with exception of confidential information) will be made available to the public for 60 days. The APCO willBay Area Air Quality Management District April 5, 2006 12-12-5 consider any written comments received during this period prior to approving or disapproving the FMP. 403.4 Final Action: Within 45 days of the close of the public comment period, the APCO will approve the FMP if he dete rmines that the plan meets the requirements of Section 12-12-401, and shall provide written notification to the owner or operator. This period ma y be extended if necessary to comply with state law. If the APCO determi nes that the FMP does not meet the requirements of Section 12-12-401, the APCO will notify the owner or operator in writing. The notificat ion will specify the basis for this determination. Upon receipt of such notification, the owner or operator shall correct the identified deficiencies and re submit the FMP within 45 days. If the APCO determines that the owner or operator failed to correct any deficiency identified in the notification, the APCO will disapprove the FMP. If the owner or operator submitted a complete FMP in accordance with Section 12- 12-402, and the APCO has not disapproved the FMP under this section, the FMP shall be considered an approved FMP for the purposes of Section 12-12-301 until the APCO takes final action under Section 12-12-403.4. 12-12-404 Update of Flare Minimization Plans: The FMP shall be updated as follows: 404.1 No more than 12 months following approval of the original FMP and annually thereafter, the owner or operator of a flare subject to this rule shall review the FMP and revise the plan to incorp orate any new prevention measures identified as a result of the analyses prescribed in Sections 12-12-401.4 and 12-12-406. The updates must be ap proved and signed by a Responsible Manager. 404.2 Prior to installing or modifying any equipment described in Section 12-12- 401.1.1 that requires a Dist rict permit to operate, t he owner or operator shall obtain an approved updated FMP addr essing the new or modified equipment. 404.3 Annual FMP updates (with exception of confidential information) shall be made available to the public for 30 days. The APCO shall consider any written comments received during this period prior to approving or disapproving the update. 404.4 Within 45 days of the close of the public comment period, the APCO shall approve the FMP update if he determines that the update meets the requirements of Section 12-12-401, and shall provide written notification to the owner or operator. The previo usly approved FMP together with the approved update constitutes the approved plan for purposes of Section 12- 12-301. This period may be extended if nec essary to comply with state law. If the APCO determines that t he FMP update does not meet the requirements of Section 12-12-401, the APCO will notify the owner or operator in writing. The notificat ion will specify the basis for this determination and the required corrective action. Upon receipt of such notification, the owner or operator shall correct the identified deficiencies and resubmit the FMP update within 30 days. If the APCO determines that the owner or operator failed to correct the deficiencies identified in the notification, the APCO will disapprove the FMP update. For purposes of Section 12-12-301, disapproval of the update constitutes disapproval of the existing FMP, unless otherwis e specified by the APCO. 404.5 If the owner or operator fails to submit a plan update as required by this Section, the APCO shall provide written notification of the lapse. If the owner or operator fails to submit an updat e within 30 days of receipt of the notification, the existing FMP shall no longer be considered an approved plan for purposes of Section 12-12-301. (Amended April 5, 2006) 12-12-405 Notification of Flaring: Effective August 20, 2005, the owner or operator of a flare subject to this rule shall notify the APCO as soon as possible, consistent with safe operation of the refinery, if the volume of vent gas flared exceeds 500,000 standardBay Area Air Quality Management District April 5, 2006 12-12-6 cubic feet per calendar day. The notificati on, either by phone, fax or electronically, shall be in a format specified by the AP CO and include the flare source name and number, the start date and time, and the end date and time. 12-12-406 Determination and Reporting of Cause: The owner or operator of a flare subject to this rule shall submit a report to the APCO within 60 days following the end of the month in which a reportable flaring event occurs. The report shall include, but is not limited to, the following: 406.1 The results of an investigation to determine the primary cause and contributing factors fo r the flaring event. 406.2 Any prevention measures that were c onsidered or implemented to prevent recurrence together with a justification for rejecting any measures that were considered but not implemented. 406.3 If appropriate, an explanation of why the flaring is consistent with an approved FMP. 406.4 Where applicable, an explanation of why the flaring was an emergency and necessary to prevent an accident, hazar d or release of vent gas to the atmosphere or where, due to a regulato ry mandate to vent to a flare, it cannot be recovered, treated and used as fuel gas at the refinery. 406.5 The volume of vent gas flared, the calculated methane, non-methane hydrocarbon and sulfur dioxide emissi ons associated with the reportable flaring event. (Amended April 5, 2006) 12-12-407 Deleted April 5, 2006 12-12-408 Designation of Confidential Information: When submitting the initial FMP, any updated FMP or any other report required by this Rule, the owner or operator shall designate as confidential any informati on claimed to be exempt from public disclosure under the California Public Records Act, Government Code section 6250 et seq. If a document is submitted that contains information designated confidential in accordance with this Section, the owner or operator shall provide a justification for this designation and shall submit a separate copy of the document with the information designated confidential redacted.

12-12-500 MONITORING AND RECORDS

12-12-501 Water Seal Integrity Monitoring: Effective August 1, 2006, the owner or operator of a flare subject to this rule with a water seal shall continuously monitor and record the water level and pressure of the water seal that services each flare. Any new installation of a water seal shall be subjec t to this requirement immediately. Records of these measurements shall be retained for one year. Monitoring devices required pursuant to this section shall be subject to the reporting and record keeping requirements of Regulation 1, Section 523: Parametric Monitors.