# Mojave Desert Air Quality Management District

Final 

# Staff Report Proposed Amendments to Rule 464 – Oil-Water Separators

Adopted on June 23, 2014

14306 P ARK 

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### , V ICTORVILLE 

### , CA 92392-2310

P HONE 

### : (760) 245-1661 F AX 

### : (760) 245-2699This page intentionally left blank.MDAQMD Rule 464 TC-1

Final Staff Report, 08/25/2014 

### STAFF REPORT TABLE OF CONTENTS Rule 464 – Oil-Water Separators

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

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

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

................................................... ................... 2 IV. LEGAL REQUIREMENTS CHECKLIST ................

................................................... ......... 3 V. DISCUSSION OF LEGAL REQUIREMENTS ............

................................................... ...... 4 A. REQUIRED ELEMENTS/FINDINGS .....................

................................................... ....... 4 1. State Findings Required for Adoption of Rules & Regulations ..................................... 4 a. Necessity ......................................

................................................... ............................ 4 b. Authority ......................................

................................................... ............................ 4 c. Clarity ........................................

................................................... .............................. 4 d. Consistency ....................................

................................................... .......................... 4 e. Nonduplication .................................

................................................... ........................ 4 f. Reference ......................................

................................................... ........................... 5 g. Public Notice & Comment, Public Hearing ........

................................................... ..... 5 2. Federal Elements (SIP Submittals, Other Federal Submittals) ....................................... 5 a. Satisfaction of Underlying Federal Requirements

................................................... ... 5 b. Public Notice and Comment ......................

................................................... .............. 5 c. Availability of Document .......................

................................................... ................. 5 d. Notice to Specified Entities ...................

................................................... .................. 6 e. Public Hearing .................................

................................................... ........................ 6 f. Legal Authority to Adopt and Implement .........

................................................... ....... 6 g. Applicable State Laws and Regulations Were Follo wed ............................................ 6 B. WRITTEN ANALYSIS OF EXISTING REQUIREMENTS ...... ...................................... 6 C. ECONOMIC ANALYSIS ..............................

................................................... ................. 7 1. General ........................................

................................................... ................................. 7 2. Incremental Cost Effectiveness..................

................................................... .................. 7 D. ENVIRONMENTAL ANALYSIS (CEQA)...................

................................................... . 7 E. SUPPLEMENTAL ENVIRONMENTAL ANALYSIS ............ ......................................... 8 1. Potential Environmental Impacts ................

................................................... ................. 8 2. Mitigation of Impacts ..........................

................................................... ......................... 8 3. Alternative Methods of Compliance ..............

................................................... .............. 8 F. PUBLIC REVIEW ..................................

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

................................................... ...................... 8 A. SOURCE DESCRIPTION .............................

................................................... .................. 8 B. EMISSIONS ......................................

................................................... .............................. 8 C. CONTROL REQUIREMENTS ...........................

................................................... ............ 8 D. PROPOSED RULE SUMMARY ..........................

................................................... .......... 9 E. SIP HISTORY ....................................

................................................... ........................... 10 1. SIP History ...................................

................................................... ............................. 10 a. SIP in the San Bernardino County Portion of MDAQ MD ....................................... 10 b. SIP in the Riverside County Portion of the MDAQM D ........................................... 11TC-2 MDAQMD Rule 464 Final Staff Report, 08/25/2014 2. SIP Analysis ...................................

................................................... ............................ 12 Appendix A - 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-1MDAQMD Rule 464 1

Final Staff Report, 08/25/2014 

### STAFF REPORT

Rule 464 – Oil-Water Separators

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 document. In addition, a staff report ensures that the correct procedures and proper docu mentation for approval or adoption of a document have been performed. Finally, the staff r eport provides evidence for defense against legal challenges regarding the propriety of the app roval or adoption of the document.

II. EXECUTIVE SUMMARY
The MDAQMD has the authority pursuant to California Health and Safety Code (H&S Code) §40702 to adopt, amend or repeal rules and regulati ons. The MDAQMD is proposing to amend Rule 464 – Oil-Water Separators for inclusion in the current rulebook.
The Federal Clean Air Act (FCAA) requires areas des ignated non-attainment and classified moderate and above to implement Reasonably Availabl e Control Technology (RACT) for sources subject to Control Technology Guidelines (C TG) documents issued by United States Environmental Protection Agency (USEPA) for “major sources” of volatile organic compounds (VOCs) and oxides of nitrogen (NO X ) which are ozone precursors. The District adopted the 8- Hour Reasonably Available Control Technology – Stat e Implementation Plan Analysis (RACT SIP Analysis) in August, 2006 and a supplement to the RACT SIP Analysis in 2014 which committed to amending current RACT for oil-water se parators. The MDAQMD has an oil-water separator rule which was approved as RACT into the SIP in 1995 (60 FR 49772, 09/27/1995). This rule is subject to the CTG titled Control of Refinery Vacuum Producing Systems, Wastewater Separators and Process Unit Turnarounds (EPA-450/2-77-025 October, 1977). While this CTG specifically states applicability to petroleum refinery sources, the current rule does not specify the refinery industry, but applies instead to similar equipment. Although the refinery industry is nonexistent in the MDAQMD, Rul e 464 has been incorporated in the SIP with additional applicability to the type of oil-wa ter separators that exist in the District. The MDAQMD is now proposing to update Rule 464 – Oil-Water Separators to reflect current RACT.
The proposed amendments to Rule 464 address the RACT SIP Analysis commitments. The proposed amendments update rule applicability, defi nitions, floating cover seal tolerances, control device efficiency, fugitive vapor leak viol ation limits, storage of skimmed oil and tar, recordkeeping, and test methods. The amendments ar e primarily based on San Joaquin Valley Unified Air Pollution Control District (SJVUAPCD) R ule 4625 – Wastewater Separators as amended December 15, 2011 and South Coast Air Quali ty Management District (SCAQMD) Rule 1176 – VOC Emissions from Wastewater Systems as amended September 13, 1996.2 MDAQMD Rule 464 Final Staff Report, 08/25/2014 SJVUAPCD Rule 4625 was approved into the SIP as RAC T at 77 FR 64427, October 22, 2012. Therefore, MDAQMD staff recommends amending Rule 46 4 – Oil-Water Separators.

III. STAFF RECOMMENDATION
Staff recommends that the Governing Board of the Mo jave Desert Air Quality Management District (District) adopt the proposed amendments t o Rule 464 – Oil-Water Separators and approve the appropriate CEQA documentation. This a ction is necessary to satisfy 42 U.S.C. §§7511a (FCAA §182) which requires that ozone non-a ttainment areas implement RACT for sources that are subject to CTGs and for major sour ces of ozone precursors.

The Governing Board of the Mojave Desert Air Qualit y Management District amended Rule 464

– Oil-Water Separators on June 23, 2014.MDAQMD Rule 464 3

Final Staff Report, 08/25/2014 IV. LEGAL REQUIREMENTS CHECKLIST
The findings and analysis as indicated below are re quired for the procedurally correct amendment of Rule 464 – Oil-Water Separators . Each item is discussed, if applicable, in Section V. Copies of related documents are include d in the appropriate appendices.

FINDINGS REQUIRED FOR RULES & REGULATIONS:

X Necessity

X Authority

X Clarity

X Consistency

X Nonduplication

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

N/A Exemption

X Negative Declaration

N/A Environmental Impact Report

X 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:

X Written analysis of existing air pollution control requirements

X Economic Analysis

X Public Review4 MDAQMD Rule 464 Final Staff Report, 08/25/2014 V. DISCUSSION OF LEGAL REQUIREMENTS

A. REQUIRED ELEMENTS/FINDINGS

This section discusses the State of California stat utory requirements that apply to the amendment of Rule 464. These are actions that need to be performed and/or information that must be provided in order to amend 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 District Governing Board is required to make findings of nec essity, authority, clarity, consistency, non-duplication, and reference based u pon relevant information presented at the hearing. The information below is provided to assist the Board in making these findings.
a. Necessity:
The amendment of Rule 464 is necessary to satisfy 4 2 U.S.C. §§7511a (FCAA §182) which requires that ozone non-a ttainment areas implement RACT for sources that are subject t o CTGs and for major sources of ozone precursors.
b. Authority:
The District has the authority pursuant to Californ ia Health and Safety Code (H&S Code) §40702 to adopt, amend or re peal rules and regulations.
c. Clarity:

The amendment of Rule 464 is clear in that the chan ges are written so that the persons subject to the rule can easily understand the meaning.
d. Consistency:
The amendment of Rule 464 is in harmony with, and n ot in conflict with or contradictory to any state law or regulation, federal law or regulation, or court decisions.
e. Nonduplication:
The amendment of Rule 464 does not impose the same requirements as any existing state or federal law o r regulation because the District is amending this rule in respo nse to federal VOC RACT requirements.MDAQMD Rule 464 5

Final Staff Report, 08/25/2014

f. Reference:
The District has the authority pursuant to H&S Code §40702 to adopt, amend or repeal rules and regulations.
g. Public Notice & Comment, Public Hearing:
Notice for the public hearing for the proposed amen dment of Rule 464 was published May 20, 2014. See Appendix “B” f or a copy of the public notice. See Appendix “C” for copies of comments, if any, and District 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 F ederal law that requires the submittal. The information below indicates which e lements are required for the amendment of Rule 464 and how they were satisfied.
a. Satisfaction of Underlying Federal Requirements:
The FCAA requires areas designated non-attainment a nd classified moderate and above to implement RACT for sources su bject to CTG documents issued by USEPA for “major sources” o f VOCs and NO x that are ozone precursors. Because the District h as an existing SIP rule for this CTG category, the Distri ct committed to adopting an updated RACT rule for oil-water separat ors as part of the RACT SIP Analysis and supplement to the RACT SIP Analysis

. USEPA approved SJVAPCD Rule 4625 – Wastewater Separators

as a RACT rule on October 22, 2012 (77 FR 64427). SJV APCD Rule 4625 was used as the basis for amendments to R ule 464 – Oil-Water Separators

.
b. Public Notice and Comment:
Notice for the public hearing for the proposed amen dment of Rule 464 was published May 20, 2014. See Appendix “B” f or a copy of the public notice. See Appendix “C” for copies of comments, if any, and District responses.
c. Availability of Document:
Copies of the proposed amendment of Rule 464 and th e accompanying draft staff report were made available to the public on May 8, 2014.6 MDAQMD Rule 464 Final Staff Report, 08/25/2014 d. Notice to Specified Entities:
Copies of the proposed amended Rule 464 and the acc ompanying draft staff report were sent to all affected agenci es. The proposed amendments were sent to CARB and USEPA on May 8, 20 14.
e. Public Hearing:
A public hearing to consider the proposed amendment of Rule 464 was held on June 23, 2014.
f. Legal Authority to Adopt and Implement:
The District has the authority pursuant to H&S Code §40702 to adopt, amend, or repeal rules and regulations and t o do such acts as may be necessary or proper to execute the duties im posed upon the District.
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 for compliance with state findings required pursuan t to H&S Code §40727. See Section (V)(B) below for compliance wi th the required analysis of existing requirements pursuant to H&S Code §40727.2. See Section (V)(C) for compliance with e conomic analysis requirements pursuant to H&S Code §40920.6 . See Section (V)(D) below for compliance with provisions of the California Environmental 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 app ly to the same equipment or source type as the rule proposed for modification by the Distri ct.
The FCAA requires areas designated non-attainment f or ozone and classified moderate and above to adopt and maintain RACT rules to contr ol the emissions of VOCs and NO x for categories which the USEPA has adopted a CTG an d for all categories where there are major stationary sources of air pollution (42 U .S.C. §7511a(b)(2), FCAA 182(b)(2)). For purposes of the FCAA, portions of the District have been designated non-attainment for ozone and classified severe-17.
The MDAQMD has an oil-water separator rule which wa s approved as RACT into the SIP in 1995 (60 FR 49772, 09/27/1995). This rule i s subject to the CTG titled Control of Refinery Vacuum Producing Systems, Wastewater Separ ators and Process Unit Turnarounds (EPA-450/2-77-025 October, 1977). While this CTG specifically states applicability to petroleum refinery sources, the cu rrent rule applies not only to theMDAQMD Rule 464 7

Final Staff Report, 08/25/2014 refinery industry, but also to similar equipment. Since the refinery industry is nonexistent in the MDAQMD, Rule 464 only applies to the type of oil-water separators that exist in the District. The MDAQMD is proposin g to update Rule 464 – Oil-Water Separators to reflect current RACT. The amendments are prima rily based on San Joaquin Valley Unified Air Pollution Control Distri ct (SJVUAPCD) Rule 4625 – Wastewater Separators as amended December 15, 2011 and South Coast Air Qu ality Management District (SCAQMD) Rule 1176 – VOC Emissions from Wastewater Systems as amended September 13, 1996. SJVUAPCD Rule 4625 was approved into the SIP as RACT at 77 FR 64427, October 22, 2012.

C. ECONOMIC ANALYSIS

1. General

RACT is defined as the lowest emissions limitation that a particular source is capable of meeting by the application of control te chnology that is reasonably available considering technological and economic fe asibility (44 FR 53762, September 17, 1979). Rule 464 is equivalent to rul es that were determined by USEPA to be RACT. 1 This determination by USEPA means that the provis ions of Rule 464 are, by definition, cost effective.

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 Avai lable Retrofit Control Technology (BARCT) or “all feasible measures” to co ntrol volatile compounds, oxides of nitrogen or oxides of sulfur. The amendm ent of Rule 464 is not subject to incremental cost effectiveness calculations beca use it does not involve BARCT or “all feasible measures”.

D. ENVIRONMENTAL ANALYSIS (CEQA)
Through the process described below the appropriate CEQA process for the amendment of Rule 464 was determined.
1. The amendment of Rule 464 meets the CEQA definit ion of “project”. They are not “ministerial” actions.
2. The amendment of Rule 464 is exempt from CEQA re view because it will not create any adverse impacts on the environment. Because there is no potential that the amendment might cause the release of addit ional air contaminants or create any adverse environmental impacts, a Class 8 categorical exemption (14

1 San Joaquin Valley Unified Air Pollution Control D istrict Rule 4625 – Wastewater Separators as amended December 15, 2011 (77 FR 64427, October 22, 2012) a nd South Coast Air Quality Management District Rule 1176

– VOC Emissions from Wastewater Systems as amended September 13, 1996 (67 FR 62376, 10/07/ 2002).8 MDAQMD Rule 464 Final Staff Report, 08/25/2014 Cal. Code Reg. §15308) applies. Copies of the docu ments relating to CEQA can be found in Appendix “D”.

E. SUPPLEMENTAL ENVIRONMENTAL ANALYSIS
1. Potential Environmental Impacts
There are no potential adverse environmental impact s of compliance with the adoption of Rule 464. Rule 464 will impose additio nal controls on VOCs, seal tolerances, and control device efficiency.
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 DESCRIPTION
This rule currently applies to any structure or sys tem which collects process effluent water contaminated with oil or other petroleum prod ucts and recovers 760 liters (201 gallons) a day or more of any petroleum products wi th a Reid vapor pressure of 25 mm Hg or greater. The proposed applicability has been changed for consistency with the SJVUAPCD rule applicability; although the reference to custody transfer has not been included as the District has no oil producers and d oes not anticipate these sources in the future. The District also added applicability for process units or containers used to store skimmed oil or tar from oil-water separators, as th ey are not part of an oil-water separator by definition, and there is a requirement for a con trol device for these storage devices. The current applicability has been moved to the exe mption section ((D)(1)(b) and (c)).

B. EMISSIONS

The amendments to Rule 464 – Oil-Water Separators do not cause the release of additional air contaminants or create any environme ntal impacts. Control device efficiency has been increased, specific seal tolera nces have been added, and fugitive vapor leak limits have been lowered which tighten r ule stringency.

C. CONTROL REQUIREMENTS
Please see section (C) of the rule (Appendix A) for control requirements.MDAQMD Rule 464 9

Final Staff Report, 08/25/2014 The amendments to Rule 464 – Oil-Water Separators do not cause the release of additional air contaminants or create any environme ntal impacts because all existing units in the District are below the applicability and onl y subject to recordkeeping to maintain the exemption. Section (C)(1)(a)(ii) proposes spec ific seal tolerances. Section (C)(1)(a)(iii) proposes increased overall control e fficiency. Section (C)(1)(c) proposes control efficiency for process units or containers used for storage of skimmed oil or tar from oil-water separators. Section (C)(2)(a) propo ses reduced fugitive vapor leak limits.

D. PROPOSED RULE SUMMARY
This section gives a brief overview of the proposed amendments to Rule 464.
Section (A) Applicability has been updated. Size l imitation has been moved to exemption section.
Section (B) Definitions added for the following: A ir flotation unit, Air Pollution Control Officer, California Air Resources Board, Op erator, and United States Environmental Protection Agency. Definitions were modified for oil-water separator and Volatile Organic Compound.
Section (C)(1)(a) Modified to specify that oil-wate r separators are not subject to applicability when gauging or sampling is taking pl ace.
Section (C)(1)(a)(ii) Modified to specify floating cover or double-deck type cover seal tolerances.
Section (C)(1)(a)(iii) Overall control efficiency i ncreased from 90% to 95% to meet RACT requirement from SJVUAPCD Rule 4625 §5.1.3.

Section (C)(1)(c) Section added to cover oil or tar skimmed from oil-water separators charged to process units with feed or tr ansferred to a container with a control system with at least a 90% control efficiency by we ight. Added to meet RACT requirement from SJVUAPCD Rule 4625 §5.4.
Section (C)(2)(a) Fugitive vapor leak violations ha ve been reduced from 10,000 ppm to 500 ppm. The definition for Fugitive Vapor Lea k (§(B)(9)) has also been updated for consistency.
Section (D)(1)(b) and (D)(1)(c) Relocated from appl icability section. The previous applicability exempted structures or systems collec ting process effluent, recovering more than 760 liters per day, and collecting petroleum p roducts with a RVP of 25 mm Hg or more. The way the exemption was proposed in the pr eliminary draft of the rule, it exclusively exempted systems collecting less than 7 60 liters with a RVP of 25 mm Hg or more. This proposed exemption, simply meant to res tructure the previous applicability, actually excluded a large portion of the exemption as it was intended to be included. Splitting the volume and RVP into separate sections presents the exemption as intended.10 MDAQMD Rule 464 Final Staff Report, 08/25/2014 Section (F)(1)(b) Recordkeeping updated to be more comprehensive as set forth in South Coast Air Quality Management District Rule 11 76 §(g)(C)(i) as recommended by USEPA in the TSD for SJVUAPCD Rule 4625, May 2012.
Section (F)(3) Rule citations updated.
Section (F)(4) Recordkeeping requirement updated fr om 2 years to five years.

Section (G)(2) Test Method for “Determination of Ex empt Compounds Content” removed as superfluous. If additional test methods are required, § (G)(4) has been added as a catch all.
Section (G)(2) (renumbered) Test method title updat ed.

Section (G)(3)(a) and (c) (renumbered) Additional test methods added from SJVUAPCD Rule 4625 §6.1.1 and §6.1.2.

Section (G)(4) Provision added to allow the Distri ct to use the most recent approved test method and allow for use of other met hods if necessary.

E. SIP HISTORY
1. SIP History.
a. SIP in the San Bernardino County Portion of MDAQ MD
Rule 464 was originally adopted on May 7, 1976 by t he Southern California Air Pollution Control District (So.Cal.A PCD) which was created by a Joint Powers Agreement (JPA) betwe en Los Angeles, Orange, Riverside and San Bernardino Count ies to replace the previous countywide air pollution contr ol districts for those counties. On February 1, 1977, pursuant to s tatute (Cal. Stats. 1976, Ch 324 p. 815) the South Coast Air Qua lity Management District (SCAQMD) was created with an in itial jurisdiction that only included areas of Los Angele s, Orange, Riverside and San Bernardino Counties contained wit hin the South Coast Air Basin (SCAB). Outlying areas remained un der the So. Cal. APCD. Also on February 1, 1977 the California Air Resources Board (CARB) issued Executive Order G-73 (1977) which adopted a “rule book” for those non-SCAB area s of Los Angeles, Riverside and San Bernardino Counties. CA RB submitted the G-73 rulebook on behalf of the “count y” districts and these rule books included Rule 464.
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 forming the So. Cal. APCD was formally dissolve d. By the terms of the JPA upon dissolution each county would regain itsMDAQMD Rule 464 11

Final Staff Report, 08/25/2014 county air pollution control district with a jurisd iction of the nonSCAB areas of the county and the applicable rules b eing the SoCal.APCD’s rules in effect upon the date of disso lution. Thus, as of February 22, 1977 the version of Rule 464 for the San Bernardino County APCD (SBCAPCD) reverted from the G-73 (1977) CARB version back to the original So.Cal.APC D May 7, 1976 version.
On July 25, 1977 the SBCAPCD readopted its rulebook including Rule 464.
On July 1, 1993 the MDAQMD was formed pursuant to s tatute. Pursuant to statute it also retained all the rules and regulations of the SBCAPCD until such time as the Governing Board of the MDAQMD wished to adopt, amend or rescind such rules . The MDAQMD Governing Board, at its very first meeting, reaffirmed all the rules and regulations of the SBCAPCD. Rule 464 was subsequently amended on August 24, 1994 and SIP app roved at 60 FR 49772 (September 27, 1995). Since SIP revisions in California are adopted by USEPA as effective in areas which ha ppen to be defined by both air basin designations and the juri sdictional boundaries of local air districts within those air basins, the MDAQMD “inherited” the SBCAPCD SIP which was in eff ect for what is now called the San Bernardino County Portio n of MDAB. Therefore the SIP version of Rule 464 is the August 24, 1994 amendment.

b. SIP in the Riverside County (Blythe/Palo Verde V alley) Portion of the MDAQMD
One of the provisions of the legislations which cre ated the MDAQMD allowed areas contiguous to the MDAQMD boundaries and within the same air basin to leave t heir current air district and become a part of the MDAQMD. On July 1, 1994 the area commonly known as the Palo Verde Valley in Riv erside County, including the City of Blythe, left SCAQMD a nd joined the MDAQMD. Since USEPA adopts SIP revisions in Califo rnia as effective within the jurisdictional boundaries of l ocal air districts, when the local boundaries change the SIP as approve d by USEPA for that area up to the date of the change remains as the SIP in that particular area. Upon annexation of the Blythe/Pal o Verde Valley the MDAQMD acquired the SIP prior to July 1, 1994 t hat was effective in the Blythe/Palo Verde Valley. Therefo re, the SIP history for the Blythe/Palo Verde Valley Portion of the MDAQMD is based upon the rules adopted and approved for th at portion of Riverside County by SCAQMD.12 MDAQMD Rule 464 Final Staff Report, 08/25/2014 SCAQMD Rule 464 - Wastewater Separators was adopted on May 7, 1976 and subsequently amended September 1, 1978, April 6, 1979, April 4, 1980, and December 7, 1990. The Dec ember 7, 1990 amendment was SIP approved 62 FR 8171 (Februar y 24, 1997).
2. SIP Analysis.
The District will request CARB to submit the propos ed amendment of Rule 464 to replace the SIP version in effect in the MDAQMD. T he MDAQMD rule book version was amended August 24, 1994, which was subs equent to the annexation of the Blythe/Palo Verde Valley. The SIP approval for this action does not specifically cite inclusion of the Blythe/Palo Verd e Valley, but the submission and approval were subsequent to the annexation. Al so, while the SCAQMD SIP submission of Rule 464 was prior to the annexation, the approval was subsequent to the annexation and the approval does not mention the exclusion of the Blythe/Palo Verde Valley. This submission will be requested for both the San Bernardino County and Riverside portions of the MDA QMD.
This submission is necessary to satisfy 42 U.S.C. § §7511a (FCAA §182) which requires that ozone non-attainment areas implement RACT for sources that are subject to CTGs and for major sources of ozone prec ursors
Since there are previously existing SIP rules for t his category the District will request that it be superseded. In order to replace existing SIP rules the District is required to show that the proposed amendments are n ot less stringent than the provisions currently in the SIP. Proposed amended Rule 464 is more stringent than the prior version in the SIP because it contai ns more stringent fugitive vapor control requirements. Specific seal tolerances are proposed, as well as increased control efficiency for control devices on oil-water separators and process units or containers used to store skimmed oil and tar. The limit for fugitive vapor leaks has been reduced. Recordkeeping requirements have also been strengthened as well as record retention time.MDAQMD Rule 464 A

- 1

Final Staff Report, 08/25/2014 

### Appendix “A”

Rule 464 – Oil-Water Separators Iterated Version

The iterated version is provided so that the change s to an existing rule may be easily found. The manner of differentiating text is as follows:

1. Underlined text identifies new or revised langua ge.
2. Lined out text identifies language which is bein g deleted.

3. Normal text identifies the current language of t he rule which will remain unchanged by the adoption of the proposed amendments.

4. [Bracketed italicized text] is explanatory material that is not part of the pr oposed language. It is removed once the proposed amendmen ts are adopted.A

- 2 MDAQMD Rule 464 Final Staff Report, 08/25/2014 This page intentionally left blank.( Adopted: 05/07/76; CARB Ex. Ord. G-73: 02/01/77; Readopted: 07/25/77; Amended: 08/24/94; Amended: mm/dd/yy)

MDAQMD Rule 464 464-1 Oil-Water Separators D1: 05/21/14 

## RULE 464

Oil-Water Separators

(A) General

(1) Purpose :
(a) The purpose of this rule is to reduce emissions of Vv olatile Oo rganic Cc ompounds (VOCs) from Oo il- Ww ater Ss eparators.
(2) Applicability :
(a) This rule applies to Oil-Water Separators including Air Flotation Units as defined in this rule, and process units or containe rs used to store skimmed oil or tar from Oil-Water Separators. any structure or system which collects process effluent water contaminated with o il or other petroleum products and recovers 760 liters (201 gallons) a da y or more of any petroleum products with a Reid vapor pressure of 25 mm Hg (0.5 pound per square inch) or greater. [Derived from SJVUAPCD Rule 4625. Size limitation moved to exemption section (D)(1)(b).]



### (B) Definitions

For the purposes of this rule only, the following d efinitions shall apply:

(1) “Air Flotation Unit” – Equipment used to remove sus pended matter, both oil and solid, from water by dissolving air under pressure and then releasing the air at atmospheric pressure in a tank or basin. [Derived from SJVUAPCD Rule 4625 §3.1.]

(2) “Air Pollution Control Officer” (APCO) - The person appointed to the position of Air Pollution Control Officer of the District pursuant to the provisions of California Health & Safety Code §40750 and his or her designee

. [Derived from MDAQMD Rule 1113.]

(3) “California Air Resources Board (CARB)” - The C alifornia State Air Resources Board, the Executive Officer of CARB and his or her authorized representative, the powers and duties of which are described in Par t 2 of Division 26 of the California Health & Safety Code (commencing with Se ction 39500). [Derived from MDAQMD Rule 1113.]

(4) “Control Device” - Any device for reducing emission s of VOC to the atmosphere.464-2 MDAQMD Rule 464 Oil-Water Separators D1: 05/21/14 ( 52 ) “Effluent Water” - Any wastewater generated as a byproduct of industrial processes and containing dissolved, particulate org anic materials. Consists of a mixture of water with a petroleum product, includin g but not limited to the following: gasoline, kerosene, distillate fuel oils , residual fuel oils and lubricants.

( 63 ) “Fixed Cover” - Any cover made out of metal(s), p olymer(s) or other material, and installed in a permanent position over the liqu id.

( 74 ) “Floating Cover” - Any cover made out of metal(s) , polymer(s) or other material, which is in contact with a liquid surface at all ti mes.
( 85 ) “Forebay” - That section of a gravity-type separa tor which (a) receives the untreated, contaminated Ee ffluent Ww ater from the preseparator flume, and (b) acts as a header which distributes the influent to the separator channels.

( 96 ) “Fugitive Vapor Leak (Leak)” - The detection of 10,000500 ppm or greater above background (expressed as methane)
, measured at the interface of the component using an appropriate hydrocarbon analyzer when sampling is performed according to the procedures specified in EPA Method 21. [Derived from BAAQMD Rule 8- 8-204 definition for “vapor-tight.”]

( 107 ) “Non-Contact Water Cooling Systems” - Any system which involves the cooling of organic vapors via coolant injected through pipi ng. There is no contact between the cooling fluid and the vapors being cool ed.

( 118 ) “Oil-Water Separator” - Any device or piece of eq uipment, which utilizes the difference in density between oil or petroleum prod ucts and water to remove the oil or associated chemicals from the water , or any device, such as a flocculation tank, clarifier, etc. that removes petroleum-derive d compounds from wastewater

. [Definition updated to match SJVUAPCD Rule 4624 def inition for “Wastewater Separator” more closely.]
(12) “Operator” – Includes, but is not limited to, any person who owns, leases, supervises, or operates a facility and/or equipment

. [Derived from SJVUAPCD Rule 4625 §3.7.]

( 139 ) “Organic Materials” - Chemical compounds of carbo n, excluding carbon monoxide, carbon dioxide, metallic carbides, metall ic carbonates and ammonium carbonate.

(1 40 ) “Organic Vapors” - Chemical compounds of carbon, excluding carbon monoxide, carbon dioxide, metallic carbides, metallic carbona tes and ammonium carbonate in their gaseous state.

(1 51 ) “Overall Control Efficiency” - Is tT he product of the capture efficiency multiplied by the control efficiency; the weight per unit time of VOC removed by a control device divided by the weight per unit time of VOC e mitted by an emission source, expressed as a percentage.MDAQMD Rule 464 464-3

Oil-Water Separators D1: 05/21/14 (1 62 ) “Petroleum Products” - Any crude oil or oil disti llate derived from tar sands, shale or coal, including, but not limited to gasoline, ke rosene, distillate fuel oils, residual fuel oils and lubricants.

(1 73 ) “Reid Vapor Pressure” - The absolute vapor pressu re of volatile crude oil and volatile nonviscous petroleum liquids, except liqui fied petroleum gases, as determined by ASTM D 323-89.
(18) “United States Environmental Protection Agency ” (USEPA) - The United States Environmental Protection Agency, the Administrator of the USEPA and his or her authorized representative. [Derived from MDAQMD Rule 1113.]

(1 94 ) “Vapor Recovery System” - A vapor-gathering syste m capable of collecting VOC vapors and gases emitted during the operation of eq uipment.

( 2015 ) “Volatile Organic Compound (VOC)” - Any volatile compound containing at least one atom of carbon, excluding methane, carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, and ammonium carbonate, and those compounds listed in 40 CFR 51.100(s). contain ing at least one atom of carbon, except for the following: [Derived from MDAQMD Rule 1113 for consistency.]

methane

carbon monoxide,

carbon dioxide,

carbonic acid,

metallic carbides or carbonates,

ammonium carbonate,

1,1,1-trichloroethane,
methylene chloride,

trichlorofluoromethane (CFC-11),

dichlorodifluoromethane (CFC-12),

chlorodifluoromethane (HCFC-22),

trifluoromethane (HFC-23)

1,1,1- trichloro-2,2,2-trifluoroethane (CFC-113),464-4 MDAQMD Rule 464 Oil-Water Separators D1: 05/21/14 1-chloro-1,1-difluoro-2-chloro-2,2-difluoroethane ( CFC-114),
chloropentafluoroethane (CFC-115),

2,2-dichloro-1,1,1-trifluoroethane (HCFC-123),

2-chloro-1,1,1,2-tetrafluoroethane (HCFC 124),
pentafluoroethane (HFC-125),

1,1,2,2-tetrafluoroethane (HFC-134),

1,1,1,2-tetrafluoroethane (HFC-134a),

1,1-dichloro-1-fluoroethane (HCFC-141b),

1-chloro-1,1-difluoroethane (HCFC-142b),

1,1,1-trifluoroethane (HFC-143a),

1,1-difluoroethane (HFC-152a),
and the following four classes of perfluorocarbon ( PFC) compounds:
(i) cyclic, branched, or linear, completely fluorin ated alkanes,
(ii) cyclic, branched, or linear, completely fluori nated ethers with no unsaturations,
(iii) cyclic, branched, or linear, completely fluor inated tertiary amines with no unsaturations, and
(iv) saturated perfluorocarbons containing sulfur w ith sulfur bonds only to carbon and fluorine

.


### (C) General Requirements

(1) Fugitive Vapor Control Devices
(a) A person shall not use any Oo il- Ww ater Ss eparator subject to the provisions of Section (A)(2), unless it has been eq uipped with one of the following vapor loss control devices , except when gauging or sampling is taking place :
(i) A Ff

ixed Cc over with all openings sealed and totally enclosing the liquid contents of the compartment, except for such breathing vents as are structurally necessary; or (ii) Aa Ff

loating Cc over

or double-deck type cover , equipped with with closure seals that have no holes or tears, installed andMDAQMD Rule 464 464-5

Oil-Water Separators D1: 05/21/14 maintained so that gaps between the compartment wal l and seal shall not exceed one-eighth inch for an accumulativ e length of 97 percent of the perimeter of the tank, and shall not exceed one-half inch for an accumulative length of the remaining th ree percent of the tank. No gap between the compartment wall and the seal shall exceed one-half inch; to enclose any space between the cover's edge and compartment wall or (iii) Route all vapors to a Cc ontrol Dd evice with an Oo verall Cc ontrol Ee fficiency (collection and control efficiencies) of at least 9 50 percent by weight of VOCs, measured according to th e test method specified in Section (G)( 34 ). [Overall control efficiency increased to meet RACT limit in SJVUAPCD Rule 4625 §5.1.3. U pdated rule citation.]

(b) Any oil-water separator subject to this rule sh all provide the following vapor loss control device:

(i) Aa Ff

ixed Cc over for all Ff

orebays, such that no liquid surface is exposed to the atmosphere.
(c) Skimmed oil or tar removed from Oil-Water Separ ators shall be either charged to process units with feed or transferred t o a container with a control system with at least 90 percent control eff iciency by weight. A Control Device must be under District permit. [Control efficiency added to meet RACT requirement in SJVUAPCD Rule 4625 §5.4.]
(2) Requirements for Covers
(a) Covers for oil-water separators shall meet the following requirements:
(i) The cover material shall be impermeable to VOCs , and free from holes or openings. (ii) Any gauging or sampling devices on the compart ment cover shall be covered. The latter cover shall be kept closed, with no visible gaps between the cover and the compartment, except when the sampling device is being used. (iii) Hatches on covers shall be kept closed and fr ee of gaps, except when opened for inspection, maintenance or repair. (iv) The perimeter of a cover, except for a Ff loating Cc over, shall form a seal free of gaps with the foundation to which it is installed.
(3) Fugitive Vapor Leak Monitoring
(a) When an instrument reading of 10,000500 parts per million [( ppm )] or greater is measured, a leak has been detected and t he reading shall constitute a violation of this rule. [Updated for RACT.]464-6 MDAQMD Rule 464 Oil-Water Separators D1: 05/21/14 

### (D) Exemptions

(1) The provisions of this rule shall not apply to:

(a) Ss egregated storm water runoff drain systems or to no n-contact cooling water systems, where applicable.
(b) Any system which collects and processes effluen t or process water contaminated with oil or other petroleum products a nd recovers less than 760 liters (201 gallons) a day or more of oil or ot her petroleum products
(c) Oils, tars and petroleum products with a Reid V apor Pressure of less than 25 mm Hg (0.5 pound per square inch).
[(D)(1)(b) and (c) relocated from applicability sec tion and separated to address comment from Searles Valley Minerals of 4/9/14.]



### (E) Monitoring

(1) Monitoring for Ff ugitive Vv apor Ll eaks shall be performed on a monthly basis and in accordance to test method specified in Secti on (G)(1). Monitoring records shall be kept on file as prescribed in Section (F)( 1).
(2) Monitoring of the control device shall be perfo rmed on an annual basis and in accordance to the test method specified in Section (G)(4).



### (F) Record Keeping

(1) A log of the monthly leak inspection shall be k ept on file at the facility. The log shall record, at a minimum, the following informati on:
(a) Date of the inspection.

(b) Findings, (statement of no leaks or the location, n ature and severity of the leak(s)) including instrument readings.Documentatio n of all written or machine recorded operator inspections, VOC measurem ents including corresponding background levels, source tests, repa irs, replacements, and reinspection records. [Updated to more comprehensive recordkeeping requirements in SCAQMD Rule 1176 §(g)(C)(i).]

(c) Leak determination method (shall be in accordan ce to the test method specified in Section (G)(1), using an appropriate h ydrocarbon analyzer).
(d) Corrective action (date of leak repair and a wr itten justification for any repair interval in excess of 15 calendar days).MDAQMD Rule 464 464-7

Oil-Water Separators D1: 05/21/14 (e) Inspector's name and signature.
(2) Any person using an emission control device/sys tem pursuant to Section (C)(1) as a means of complying with provisions of this rule s hall maintain records of key system operating and maintenance data for the purpo se of demonstrating continuous compliance during periods of emission pr oducing activities. The data shall be recorded in a manner as prescribed by the District.
(3) Any facility claiming exemption pursuant to Sec tions ( D ) (1) (a) or ( DA )( 12 ) (b) of this rule shall keep records to substantiate the cl aimed exempt status. [Rule citations updated.]
(4) Any record required or produced pursuant to thi s rule shall be retained on site for a minimum of two five (5) years and shall be made available to the APCO upon request. [Updated to meet SJVUPACD Rule 4625 §6.2.3.]



### (G) Test Methods For Compliance Verification

A violation determined by any one of these test met hods shall constitute a violation of the rule:
(1) Fugitive Vapor Leaks - Detection of VOCs - EPA Method 21 shall be used to determine compliance with this rule in regards to f ugitive or VOC leaks. Instrument shall be calibrated with Method 21 using zero air (less than 10 parts per million ([ ppm )] of hydrocarbon in air) with a mixture of methane o r n-hexane.
(2) Determination of Exempt Compounds Content - Det ermination of the content of exempt compounds in solvents or any diluents shall be determined by ASTM D 4457-85. Perfluorocarbon compounds shall be assume d to be absent from a product or process unless a manufacturer or facilit y operator identifies the specific individual compounds (from the broad classes of per fluorocarbon compounds) and the amounts present in the product or process a nd identifies a validated test method which can be used to quantify the specific c ompounds. [Removed test method as superfluous. If test method for determin ation of exempt compounds is needed, it can be determined under §(G)(4).]

( 23 ) Determination of Reid Vapor Pressure - Shall be d etermined by measuring the Reid Vapor pressure in accordance with Test Method for Vapor Pressure for Petroleum Products (Reid Method) , ASTM D 323-82 (April 8, 1987)

. ( 34 ) Control Device Efficiency - Determining the destr uction or removal efficiency of a control device shall be:

(a) Ff or systems utilizing add-on control equipment, EPA Method 25 or 25A, as applicable and analysis of halogenated exempt compounds shall be by ARB Method 22

. [Additional test method from SJVUAPCD Rule 4625 §6.1.1.]464-8 MDAQMD Rule 464 Oil-Water Separators D1: 05/21/14 (b) Ff or incinerators or catalytic incinerators, EPA Meth od 25, unless the concentration of VOC in the outlet stream is below 50 ppm as carbon, in which case EPA Method 25A shall be used.
(c) Where add-on control equipment is utilized, col lection efficiency shall be determined by EPA document “Model Regulatory Langua ge for Capture Efficiency Testing,” August 3, 1990. [Derived from SJVUAPCD Rule 4625 §6.1.2.]
(4) Any applicable alternative test method may be u sed so long as such method has been approved by USEPA, CARB and the APCO. [Derived from AVAQMD Rule 1124 §(E)(3)(f). This provision allows the Distric t to use the most recent approved ASTM method and allows use of other offici al test methods if necessary.]

[SIP: See SIP Table at http://www.mdaqmd.ca.gov/Modules/ShowDocument.aspx? documentid=45 ]

[SIP: Approved 9/27/95, 60 FR 49722, 40 CFR 52.220( c)(202)(i)(D)(1); Approved 9/8/78, 43 FR 40011, 40 CFR 52.220(c)(39)(iv)(C); Approved 6/1 4/78, 43 FR 25684, 40 CFR 52.220 (c)(32)(iv)(A)]MDAQMD Rule 464 B-1

Final Staff Report, 08/25/2014 

### Appendix “B” Public Notice Documents

1. Proof of Publication – Daily Press 2. Proof of Publication – Riverside Press Enterpris eB-2 MDAQMD Rule 464 Final Staff Report, 08/25/2014 This page intentionally left blank.MDAQMD Rule 464 B-3

Final Staff Report, 08/25/2014 NOTICE OF HEARINGB-4 MDAQMD Rule 464 Final Staff Report, 08/25/2014MDAQMD Rule 464 C-1

Final Staff Report, 08/25/2014 

### Appendix “C” Public Comments and Responses

1. USEPA comments on preliminary draft, April 23, 2 014 2. Searles Valley Minerals comment, 04/09/2014 3. USEPA “No Comment” letter, May 30, 2014 4. CARB “No Comment” letter, June 6, 2014C-2 MDAQMD Rule 464 Final Staff Report, 08/25/2014 This page intentionally left blank.MDAQMD Rule 464 C-3

Final Staff Report, 08/25/2014 1

2

4 3

7

8 6 5 Comment 1 – USEPA, April 23, 2014C-4 MDAQMD Rule 464 Final Staff Report, 08/25/2014 District Response to comment letter 1

1. The reference to custody transfer as referenced in SJVUAPCD Rule 4625 §2.0 in has not been included as the District has no oil producers, and custody transfer references the physical and contractual ownership transfer of produced flui ds from an oil producer to another entity (SJVUAPCD Rule 4625 §3.4). 2. Leak detection limit has been lowered to 500 ppm in definition (B)(9) and Section (C)(3)(a).. 3. Updated definition of oil-water separator includ es “Any device or piece of equipment, which utilizes the difference in density between oi l or petroleum products and water to remove the oil or associated chemicals from the water, or any device, such as a flocculation tank, clarifier, etc. that removes petroleum-derived comp ounds from wastewater.” The applicability was also amended to include air flotation units. 4. Thank you for comment. No response necessary. 5. Leak detection limit has been lowered to 500 ppm in definition (B)(9) and Section (C)(3)(a). 6. Exemption was revised for clarity. This exempti on was the prior applicability. 7. Thank you for comment. No response necessary. 8. Thank you for comment. No response necessary.MDAQMD Rule 464 C-5

Final Staff Report, 08/25/2014 Comment 2 – SVM, May 13, 2014

1

2C-6 MDAQMD Rule 464 Final Staff Report, 08/25/2014 District Response to comment letter 2

1. As suggested, proposed section (D)(1)(b) has bee n modified to address the volume portion of the exemption, with the RVP reference be ing moved to new section (D)(1)(c). 2. As suggested, proposed section (D)(1)(c) has bee n added to address RVP separately.

The previous applicability exempted structures or s ystems collecting process effluent, recovering more than 760 liters per day, and collecting petrol eum products with a RVP of 25 mm Hg or more. The way the exemption was proposed in the pr eliminary draft of the rule, it exclusively exempted systems collecting less than 760 liters wi th a RVP of 25 mm Hg or more. This proposed exemption, simply meant to restructure the previous applicability, actually excluded a large portion of the exemption that was intended to be included. Splitting the volume and RVP into separate sections presents the exemption as in tended.MDAQMD Rule 464 C-7

Final Staff Report, 08/25/2014 Comment 3 – USEPA, May 13, 2014C-8 MDAQMD Rule 464 Final Staff Report, 08/25/2014 District Response to comment letter 3

No response required.MDAQMD Rule 464 C-9

Final Staff Report, 08/25/2014 Comment 4 – CARB, June 6, 2014C-10 MDAQMD Rule 464 Final Staff Report, 08/25/2014 District Response to comment letter 4

No response required.MDAQMD Rule 464 D-1

Final Staff Report, 08/25/2014 

### Appendix “D”

California Environmental Quality Act

Documentation

1. Notice of Exemption – San Bernardino County 2. Notice of Exemption – Riverside CountyD-2 MDAQMD Rule 464 Final Staff Report, 08/25/2014 This page intentionally left blank.MDAQMD Rule 464 D-3

Final Staff Report, 08/25/2014D-4 MDAQMD Rule 464 Final Staff Report, 08/25/2014MDAQMD Rule 464 D-5

Final Staff Report, 08/25/2014D-6 MDAQMD Rule 464 Final Staff Report, 08/25/2014MDAQMD Rule 464 E-1

Final Staff Report, 08/25/2014 

### Appendix “E” Bibliography

The following documents were consulted in the prepa ration of this staff report.

1. SJVUAPCD Rule 4625 – Wastewater Separators, 12/1 5/11 2. TSD for SJVUAPCD Rule 4625 (May 2012) 3. BAAQMD Regulation 8, Rule 8 – Wastewater (Oil-Wa ter) Separators, 6/15/94 4. SCAQMD Rule 1176 – VOC Emissions from Wastewater Systems, 9/13/96 5. TSD for SCAQMD Rule 1176, July 25, 2002 6. SCAQMD Rule 464 – Wastewater Separators, 12/7/90 7. Control of Refinery Vacuum Producing Systems, Wa stewater Separators and Process Unit Turnarounds, EPA-450/2-77-025, October 1977.E-2 MDAQMD Rule 464 Final Staff Report, 08/25/2014 This page intentionally left blank