RESOLUTION NO. 2005-32

A Resolution of the South Coast Air Quality Management District

Governing Board (AQMD Governing Board) certifying the Final

Environmental Assessment for Proposed Amended Rule 1118 - Control of

Emissions from Refinery Flares.

A Resolution of the AQMD Governing Board adopting Amended Rule

1118 - Control of Emissions from Refinery Flares.

WHEREAS, the AQMD Governing Board has determined with certainty

that Proposed Amended Rule 1118 - Control of Emissions from Refinery Flares, is

a "project" pursuant to the terms of the California Environmental Quality Act

(CEQA); and

WHEREAS, the AQMD has had its regulatory program certified pursuant

to Public Resources Code §21080.5 and has conducted CEQA review pursuant to

such program (AQMD Rule 110); and

WHEREAS, AQMD staff has prepared a Draft Environmental Assessment

(EA) pursuant to its certified regulatory program and state CEQA Guidelines

§ 15252 setting forth the potential environmental consequences of Proposed

Amended Rule 1118 - Control of Emissions from Refinery Flares; and

WHEREAS, the Draft EA was circulated for public review, comments

received were responded to, and a Final EA has been prepared; and

WHEREAS, the adequacy of the Final EA, including responses to

comments, has been detennined by the AQMD Governing Board prior to its

certification; and

WHEREAS, a Mitigation Monitoring Plan pursuant to Public Resources

Code §21 081.6, has not been prepared since no mitigation measures are necessary;

and

WHEREAS, the AQMD Governing Board voting on Proposed Amended

Rule 111,8 -Control of Emissions from Refinery Flares, has reviewed, considered,

and hereby certifies the Final EA; and

WHEREAS, the Governing Board finds and detennines, taking into

consideration the factors in §( d)( 4 )(D) of the Governing Board Procedures, that the

modifications adopted which have been made to PAR 11118 - Control of

Emissions from Refinery Flares, since notice of public hearing was published do

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not significantly change the meaning of the proposed role within the meaning of

Health and Safety Code §40726 and would not constitute significant new

infomlation requiring recirculation of the Draft CEQA document pursuant to

CEQA Guidelines § 15088.5; and

WHEREAS, the AQMD Governing Board has detennined that the

Socioeconomic Impact Assessment and Final Staff Report of the Proposed

Amended Rule 1118 - Control of Emissions from Refinery Flares, is consistent

with the Governing Board March 17, 1989 and October 14, 1994 resolutions and

the provisions of Health and Safety Code Sections 40440.8, 40728.5 and 40920.6;

and

WHEREAS, the AQMD Governing Board has determined that the

Proposed Amended Rule 1118 - Control of Emissions from Refinery Flares, will

result in increased costs to industry, yet is considered cost-effective with a oosteffectiveness as descnoed in the Socioeconomic Impact Assessment and Staff

Report; and

WHEREAS, the AQMD Governing Board has actively considered the

Socioeconomic Impact Assessment and has made a good faith effort to minimize

such impacts; and

WHEREAS, the AQMD Governing Board has reviewed and considered

the staffs findings related to cost and employment impacts of the Proposed

Amended Rule 1118 - Control of Emissions from Refinery Flares, set forth in the

Socioeconomic Impact Assessment and Final Staff Report made public with the

agenda package for this meeting, and hereby find and determines that cost and

employment impacts are as set forth in that assessment; and

WHEREAS, the AQMD Governing Board has determined that a need

exists to adopt the Proposed Amended Rule 1118 - Control of Emissions from

Refinery Flares, to reduce sulfur dioxide and other criteria pollutants from flare

events at petroleum facilities by implementing Step II of Control Measure CMB07 of the 1999 and 2003 AQMP and to achieve federal PM10 and ozone standards

in 2006 and 2010 respectively; and

WHEREAS, the AQMD Governing Board of the South Coast Air Quality

Management District obtains its authority to adopt, amend or repeal rules and

regulations from Sections 39002, 40000, 40001, 40440,40441,40702,41508 and

41700 of the California Health and Safety Code; and

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WHEREAS, the AQMD Governing Board has determined that Proposed

Amended Rule 1118 - Control of Emissions from Refinery Flares, as proposed to

be adopted is written or displayed so that its meaning can be easily understood by

the persons directly affected by it; and

WHEREAS, the AQMD Governing Board has determined that Proposed

Amended Rule 1118 - Control of Emissions from Refinery Flares, as proposed to

be adopted is in harmony wi~ and not in conflict with or contradictory to, existing

federal or state statutes, court decisions, or regulations; and

WHEREAS, the AQMD Governing Board has determined that that

Proposed Amended Rule 1118 - Control of Emissions from Refinery Flares, as

proposed to be amended does not impose the same requirements as any existing

state or federal regulation and the proposed role is necessary and proper to execute

the powers and duties granted to, and imposed upon the AQMD; and

WHEREAS, the AQMD Governing Board has dete1111ined that Proposed

Amended Rule 1118 - Control of Emissions from Refinery Flares, as proposed to

be amended, references the following statutes which the AQMD hereby

implements, interprets or makes specific: California Health and Safety Code

sections 41700 (Nuisance), 40440(a) (Rules to Implement Plan), 40440(b) (Best

Available Retrofit Technology) and Title 42 V.S.C. Section 7502(c)(I)

(Reasonably Available Control Technology); and

WHEREAS, the AQMD Governing Board has detennined that there is a

problem that Proposed Amended Rule 1118 will help alleviate, i.e., the Basin does

not meet the ambient air quality standards for ozone, PMI0 and PM2.5 standards,

and the Proposed Amended Rule will promote attainment of these standards; and

WHEREAS, a public hearing has been properly noticed in accordance with

the provisions of Health and Safety Code Section 40725; and

WHEREAS, the AQMD Governing Board has held a public hearing in

accordance with all provisions of law; and

WHEREAS, the AQMD Governing Board specifies the manager of

Proposed Amended Rule 1118 - Control of Emissions from Refinery Flares, as the

custodian of the documents or other materials which constitute the record of

proceedings upon which the adoption of this proposed amendment is based, which

are located at the South Coast Air Quality Management District, 21865 Copley

Drive, Diamond Bar, California; and

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WHEREAS, the AQMD Governing Board has detemrined that Proposed

Amended Rule 1118 - Control of Emissions from Refinery Flares, should be

adopted instead of the more stringent option of recovering all vent gases routed to

flares except for emergency vent gases because the incremental cost effectiveness

of the more stringent option exceeds $155,918 per ton of sulfur dioxide reduced;

and

WHEREAS, that the AQMD Governing Board hereby directs staff to work

closely with Western States Petroleum Association and its members and other

interested parties in conducting a pilot program to demonstrate the technical

feasibility of total sulfur analyzers; evaluate all data collected from the use of

higher heating value analyzers that may be presented by industry; and, no later than

December 2006, report the results of the pilot program and data analysis, including

any recommendations relative to these analyzers, to the Stationary Source

Committee; and

WHEREAS, that the AQMD Governing Board hereby directs staff. to

provide annual status reports on overall industry perfOmlance and updates on

annual sulfur dioxide performance targets exceedances to the Stationary Source

Committee and to develop the air quality improvement projects to be funded by

mitigation fees collected as a result of those exceedances, in cooperation with

representatives of both the community impacted and the source of the release; and

WHEREAS, that the AQMD Governing Board hereby directs staff to

continue to work with industry, community members and other regulatory agencies

on community notification procedures and report back to the Governing Board

within 12 months and with periodic updates thereafter; and

WHEREAS, that the AQMD Governing Board hereby directs staff to

evaluate the feasibility of establishing a daily emission target and the

appropriateness of annual emissions targets and whether any refinements to those

targets are wan'anted and report back to the AQMD Governing Board with any

recommendations no later than April 2007; and

WHEREAS, that the AQMD Governing Board hereby directs staff to

evaluate the use of the data substitution procedures by industry during the first year

of implementation of PAR 1118 and report back to the AQMD Governing Board

with any recommendations no later than April 2007; and

WHEREAS, that the AQMD Governing Board hereby directs staff to

evaluate the Bay Area Air Quality Management District Rule 12 - Flares at

Petroleum Refineries requirement to implement Flare Minimization Plans and the

resultant installation of controls, and the feasibility to implement uninterruptible

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power to minimize flaring and report back to the AQMD Governing Board with

any recommendations no later than April 2007;

WHEREAS, that the AQMD Governing Board hereby directs staff to

review the definition of Essential Operational Need and report back to fue AQMD

Governing Board with any recommendations no later than April 2007; and

WHEREAS, the AQMD Governing Board has detennined that Proposed

Amended Rule 1118 - Control of Emissions from Refinery Flares, should be

adopted for the reasons contained in the Final Staff Report, and

NOW, THEREFORE, BE IT RESOLVED, that the AQMD Governing

Board hereby certifies, pursuant to the authority granted by law, the Final EA for

Proposed Amended Rule 1118 - Control of Emissions from Refinery Flares, and

BE IT FURTHER RESOLVED, that because no significant adverse

environmental impacts were identified as a result of implementing Proposed

Amended Rule 1118 - Control of Emissions from Refinery Flares, a Statement of

Findings, a Statement of Overriding Considerations, and a Mitigation Monitoring

Plan are not required; and

BE IT FURTHER RESOLVED, that the AQMD Governing Board does

hereby adopt, pursuant to the authority granted by law, Proposed Amended Rule

1118 - Control of Emissions from Refinery Flares, as set forth in the attached and

incorporated herein by reference; and

A YES: AntoDovich, Burke, Carney, LaPisto- Kirtley, Ovitt; Perry,

Pulido, Verdugo-Peralta, WilsoD7 and Yates.

NOES: None.

ABSENT: Loveridge and Silva.

II / ~t .}:1lJ s--' 5itie -,. / ~u~

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