# San Joaquin Valley

AIR POLLUTION CONTROL DISTRICT 

# HEALTHY AIR LIVING

GOVERNING BOARD

J. Steven Worthley, Chair

Tulare Counr, Ann Johnston, Vice Chair Mayor, City of Stockton Tony Barba Supervises, Kings County DATE: December 15, 2011 TO: SJVUAPCD Governing Board FROM: Seyed Sadredin, Executive Director/APCO

Project Coordinator: Errol Villegas
RE: 

### ADOPT PROPOSED AMENDMENTS TO RULE 4625 (WASTEWATER SEPARATORS)

RECOMMENDATION:
1 Adopt Proposed Amendments to Rule 4625 (Wastewater Separators).
2 Authorize the Chair to sign the attached Resolution.



### BACKGROUND: In continuing efforts to reduce emissions from stationary sources in the Valley, your Board adopted amendments to Rule 4625 (Wastewater Separators) in December 1992. The adopted amendments included stringent emissions limitations and design requirements that control volatile organic compound (VOC) emissions from wastewater separators. After adoption, the rule was submitted to the Environmental Protection Agency (EPA) for evaluation and inclusion into the State Implementation Plan (SIP). EPA evaluated the amended rule and determined that while the rule largely meets Clean Air Act requirements, several issues needed to be further evaluated to ensure the rule fully satisfies the requirements of the Act for reasonably available control technology or RACT. The District has conducted a thorough analysis and is proposing amendments that are expected to result in full EPA approval of Rule 4625. Today's recommendations will increase vapor control efficiency from 90 to 95%, remove exemptions and outdated language, add definitions, and add recordkeeping and maintenance requirements. District staff have determined that the amendments will not achieve significant emissions reductions or have a significant impact on affected Judith & Case Supervisor, Fresno County
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Seyed Sadredin Executive OirectOr Alf PV!Illf!fi OlifiCef Northern Region °Ike 4800 Enteiprise Way Modesto, CA 95355-6718 f209 557 6490 • FAX 12091 557•6475
Central Region Office 1g90 East Gettysburg Avenue Fresno, CA 93726 , 0244 15591 230-6000 • FAX [55g) no 6061 Southern Region Office 34945 Flyover Court Bakersfield, CA 93308-9725 16611092-5500 • FAX [6611392.5585 werw.vaifeyair argSJVUAPCD Governing Board

ADOPT PROPOSED AMENDMENTS TO RULE 4625 (WASTEWATER SEPARATORS) December 15, 2011


### sources since the District has existing requirements in place that affect these sources. These existing requirements, including the existing rule, New Source Review permitting, and the District's risk management requirements, have already eliminated or reduced the majority of emissions from this source. Rather than looking at these requirements collectively as a demonstration that Valley sources meet Clean Air Act requirements, the Act still requires each rule to specifically contain the RACT limits. Although no significant reductions in actual emissions will be achieved, the proposed amendments will satisfy these administrative requirements. This rule addresses VOC emissions from a source category that is relatively small, with only 7 wastewater separators impacted by this rule. VOC emissions reductions are generally far less important to the Valley's long-term attainment goals than are oxides of nitrogen (N0x) emissions reductions. As such, the Valley's attainment strategies generally emphasize NOx reductions. The District will continue to seek as much VOC reductions as expeditiously practical, technologically feasible, and as economically reasonable as determined by the Governing Board.

DISCUSSION: 

### EPA finalized a limited approval of Rule 4625 on July 7, 2011. To demonstrate RACT, EPA suggested removing exemptions, increasing the required vapor control efficiency, and including requirements for recordkeeping and inspection. District staff evaluated existing standards and worked with affected sources to incorporate EPA's recommended changes as appropriate. The proposed rule was made available to the public 30 days prior to this public hearing. Based on further review, the District has made minor revisions to the proposed rule. The revised proposed language does not change the applicability, requirements or intent of the rule. Summary of Proposed Amendments to Rule 4625 

### District staff is proposing increasing VOC control efficiency requirements from 90% to 95% for units with vapor recovery systems. The revised proposed rule includes the removal of all exemptions from the rule, including exemptions for air floatation units, exemptions from New Source Review, and exemption for units that exceed a set ratio of sump surface area to oil vapor loss. The proposed amendments also include new requirements for recordkeeping and inspection. Additionally, the District proposes to add definitions to Section 3.0 of the rule to add rule clarity and address a concern from stakeholders during the rule development process regarding the definition of custody transfer. District staff is also proposing to remove the compliance section as requested by EPA comments and confirmed by affected sources to not be in use.

2SJVUAPCD Governing Board

ADOPT PROPOSED AMENDMENTS TO RULE 4625 (WASTEWATER SEPARATORS) December 15, 2011
Emission Reduction Analysis Emission reductions from the proposed amendments are not anticipated since most facilities are already complying with the proposed VOC emission limits or can make minor operating changes to be in compliance. Cost Effectiveness Analysis Pursuant to California Health & Safety Code Section (CH&SC) 40920.6(a), the District is required to analyze the cost effectiveness of new rules or rule amendments that implement Best Available Retrofit Control Technology (BARCT) or planning requirements to incorporate all feasible measures. The proposed amendments to this rule would only add federal RACT requirements but not BARCT or all feasible measures, and are therefore not subject to the cost effectiveness analysis mandate. Given that operators are generally complying with the increased control efficiency requirements currently and there are no significant emission reductions or compliance costs expected from these rule changes, a cost effectiveness analysis has not been performed. Socioeconomic Analysis Pursuant to CH&SC 40728.5(a), "Whenever a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, that agency shall, to the extent data are available, perform an assessment of the socioeconomic impacts of the adoption, amendment, or repeal of the rule or regulation. This section does not apply to the adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the action does not interfere with the district's adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions." The proposed amendments do not significantly affect air quality and no significant emission reductions are expected or claimed. The proposed amendments are primarily administrative changes such as the addition of inspection and recordkeeping. Affected sources could be impacted by increasing the required the control efficiency of vapor control systems from 90% to 95%. However, District staff has determined that all sources subject to Rule 4625 that utilize vapor recovery as the sole means of complying with the rule already achieve 95% control efficiency. Based on discussions with operators, the changes do not create a significant change to their operations or economic situation since they are already using compliant materials or do not use the specialty materials that are being impacted. Therefore, staff concludes that there would be no significant socioeconomic impact from this rule.

3SJVUAPCD Governing Board

ADOPT PROPOSED AMENDMENTS TO RULE 4625 (WASTEWATER SEPARATORS) December 15, 2011
Rule Consistency Analysis Pursuant to CH&SC §40727.2, District staff evaluated the elements of amendments with the corresponding elements of other District rules and federal regulations that apply to the same source category or type of equipment. District staff found that the proposed amendments and requirements of this rule would not conflict with federal rules, regulations, or policies covering similar stationary sources. Environmental Impacts Adoption of the proposed amendments would limit VOC emissions from wastewater separators. As discussed in this Staff Report, the District proposes to make several minor and administrative changes to further strengthen District Rule 4625. The District performed an environmental analysis of the reasonably foreseeable methods by which compliance with the amended rule will be achieved. The District concludes that implementation of the proposed amendments would not result in foreseeable changes in existing operating practices impacting environmental resources. Staff concludes that there is no substantial evidence in the whole record before the District that the proposed amendments would cause any adverse environmental effects. Thus, the District finds that the project is exempt per the general rule that California Environmental Quality Act (CEQA) applies only to projects which have the potential for causing a significant effect on the environment (CCR §15061(b)(3)). Rule Development Process As part of the rule development process, District staff hosted a stakeholder meeting in September 2011 and a public workshop in October 2011 to discuss potential rule amendments with stakeholders. Staff solicited comments from the public, affected sources, trade organizations, California Air Resources Board (ARB), and EPA. Comments received were evaluated and incorporated into the rule as appropriate. The notice of the public hearing for the proposed rule amendments was published in general circulation newspapers in each of the eight San Joaquin Valley counties, and will be made available for review on the District website prior to this public hearing.



### FISCAL IMPACTS: District staff expects no fiscal impact to the District to result from this action.

Attachments: Attachment A: Resolution for Revised Proposed Amendments to Rule 4625— (4 pages)

Attachment B: Revised Proposed Rule 4625 - (6 pages) Attachment C: Final Draft Staff Report with Appendices for Revised Proposed Rule

4625 — (34 pages) 4