GOVERNING BOARD

Skip Barwick, Chair Councilmember, City of Tulare

Hub Walsh, Vice Chair Supervisor, Merced County

Oliver L. Baines III Councilmember, City of Fresno

Tony Barba Supervisor, Kings County

Sally J. Bomprezzi Councilmember, City of Madera

Dennis Brazil Mayor, City of Gustine

Judith G. Case Supervisor, Fresno County

David Couch Supervisor, Kern County

Bob Elliott Supervisor, San Joaquin County

Harold Hanson Councilmember, City of Bakersfield

William O’Brien Supervisor, Stanislaus County

Alexander C. Sherriffs, M.D. Appointed by Governor

Tom Wheeler Supervisor, Madera County

J. Steven Worthley Supervisor, Tulare County

Seyed Sadredin

Executive Director
Air Pollution Control Officer

Northern Region Office 4800 Enterprise Way Modesto, CA 95356

- 8718 (209) 557

- 6400 • FAX (209) 557

- 6475

Central Region Office 1990 East Gettysburg Avenue Fresno, CA 93726

- 0244 (559) 230

- 6000 • FAX (559) 230

- 6061

Southern Region Office 34946 Flyover Court Bakersfield, CA 93308

- 9725 (661) 392

- 5500 • FAX (661) 392

- 5585

www.valleyair.org DATE: December 19, 2013

TO: SJV UAP CD G overning B oard

FROM: Seyed Sadredin, Executive Director/APCO

Project Coordinator: Dave Warner

RE: ITEM NUMBER 8: ADOPT PROPOSED

AMENDMENTS TO RULE 4621 (GASOLINE

TRANSFER INTO STATIONARY STORAGE CONTAINERS, DELIVERY VESSELS, AND BULK PLANTS) AND RULE 4622 (GASOLINE TRANSFER INTO MOTOR VEHICLE FUEL TANKS)

RECOMMENDATIONS:

1. Adopt Proposed Amendments to Rule 4621 (Gasoline Transfer into Stationary St orage Containers, Delivery Vessels, and Bulk Plants) and Rule 4622 (Gasoline Transfer into Motor Vehicle Fuel Tanks)

.

2. Authorize the Chair to sign the attached Resolution.

BACKGROUND:

The San Joaquin Valley Unified Air Pollution Control District (District) routinely reviews its rules

, regulations and administrative policies to ensure effectiveness and improve efficiency. Towards that end, today’s recommendations are intended to eliminat e redundant

, obsolete and unnecessary regulatory requirements from District Rules

4621 and 4622.

DISCUSSION:

The rules associated with today ’s recommendations are designed to control the emissions of volatile organic compounds (VOCs) that are created during the distribution of gasoline to and from gasoline storage

containers.SJVUAPCD Governing Board

ITEM NUMBER 8: ADOPT PROPOSED AMENDMENTS TO RULE 4621 (GASOLINE TRANSFER INTO STATIONARY STORAGE CONTAINERS, DELIVERY VESSELS, AND BULK PLANTS) AND RULE 4622 (GASOLINE TRANSFER INTO MOTOR VEHICLE FUEL TANKS)
December 19, 2013

2 Rule 4621 is associated with bulk gasoline storage containers, such as those that dispense gasoline into tanker trucks that subsequently deliver the gasoline to service stations. The rule requires control of gasoline vapors that are created during the filling of stationary storage container s, known as “Phase I vapor recovery”, and during the filling of the delivery tankers.

Rule 4622 requires control of emissions that are created during the dispensing of gasoline from storage tanks into the tanks of motor vehicles , known as “Phase II vapor recovery”.

The proposed amendments do not change existing emissions limitations or result in detrimental impacts on air quality. The following is a summary of proposed

amendments to District Rules 4621 and 4622.

Rule 4621 District Rule 4621 applies to gasoline storage containers located at bulk plants with capacities greater than 250 gallons and less than 19,800 gallons; to other stationary gasoline storage containers with capacities greater than 250 gallons; to those gasoline storage containers that are not subject to the control requirements of District Rule 4623 (Storage of Organic Liquids); and to gasoline delivery vessels.

Currently, Rule 4621 requires a California Air Resources Board (ARB) certified vapor recovery system for aviation gasoline bulk loading operations; however, ARB does not certify such operations. Therefore, Rule 4621 will be amended to remove ARB certification requirements for these operations. Instead of ARB certifications, these operations would be required to be equipped with a vapor recovery system that would meet a minimum volumetric control of 90% as required by ARB’s Certification Procedure (CP-202) for Vapor Recovery Systems of Bulk Plants (March 17, 1999). The proposed amendments would incorporate these testing requirements, and eliminate the ARB certification requirement. No change in emissions or emissions control will result from this change.

Rule 4622 District Rule 4622 applies to any gasoline storage and dispensing operation or mobile fueler from which gasoline is transferred into motor vehicle fuel tanks, except certain exemptions identified in Section 4.0 of the rule.

The proposed amendments to Rule 4622 would incorporate an exemption from requiring Phase II vapor recovery systems for E85 (85% ethanol and 15% gasoline) fuel dispensing facilities. Flexible Fuel Vehicles (FFVs) that use E85 fuel are equipped with an Onboard Refueling Vapor Recovery (ORVR) system. As ORVR essentially performs the same function as a Phase II vapor recovery system and each system is required to achieve a minimum vapor control efficiency of 95%, Phase II vapor recovery systems are redundant and unnecessary when fueling ORVR-equipped vehicles. Therefore, the removal of Phase II vapor recovery system for E85 fuel dispensing operation would notSJVUAPCD Governing Board

ITEM NUMBER 8: ADOPT PROPOSED AMENDMENTS TO RULE 4621 (GASOLINE TRANSFER INTO STATIONARY STORAGE CONTAINERS, DELIVERY VESSELS, AND BULK PLANTS) AND RULE 4622 (GASOLINE TRANSFER INTO MOTOR VEHICLE FUEL TANKS)
December 19, 2013

3 result in relaxing current rule requirements and would not result in an increase in

emissions.

The federal Environmental Protection Agency (E PA ) has issued a memorandum to the states that supports this type of rule change, and has commented in support of our specific proposed rule amendments , as well. ARB has separately supported these types of rule changes. The rule changes proposed for Board consideration today incorporate the necessary language to allow businesses to avoid the unnecessary cost of installing ineffectual Phase II vapor recovery for dedicated E85 dispensing systems.

In addition, ARB ’s Executive Orders for certified Phase II vapor recovery systems currently include requirements for alarm responses for In -Station Diagnostics (ISD) systems and for the installation of liquid condensate traps. These requirements are proposed to be included in Rule 4622 in order to help regulated sources better understand the applicable requirements.

Finally, additional proposed amendments to Rule 4622 would reduce the frequency of the Dynamic Back-Pressure Test from once every twelve months to once every five years. Due to the invasive nature of the test in which the vapor space of the system is opened, reducing the test frequency will reduce emissions that result from opening the vapor

space. Th is proposed amendment would not result in an increase in emissions, as vapor recovery systems are initially tested to ensure they are constructed correctly, and very few fail - of the approximately 1,500 tests performed annually, less than one (1) failure occurs per year, on average. The five year test frequency is consistent with

EPA ’s guidance on minimum test frequencies.

Regulatory Analyses

This rule-amending project incorporates existing state and federal standards, clarifies existing requirements and updates the frequency of dynamic backpressure testing. The proposed amendments do not result in new or more stringent regulatory controls beyond those already enforced and do not negatively affect air quality or relax existing

emission limitations.

A. Emission Reduction & Cost Effectiveness Analysis

Emissions will be reduced as a result of the proposed amendment of reducing the frequency of the Dynamic Back-Pressure Test. However, the emission reductions will not be quantified for the purpose of this rule amendment project and will therefore not be quantified or claimed in the State Implementation Plan (SIP). Additionally, there are no costs associated with the proposed amendments to District Rules 4621 and 4622.SJVUAPCD Governing Board

ITEM NUMBER 8: ADOPT PROPOSED AMENDMENTS TO RULE 4621 (GASOLINE TRANSFER INTO STATIONARY STORAGE CONTAINERS, DELIVERY VESSELS, AND BULK PLANTS) AND RULE 4622 (GASOLINE TRANSFER INTO MOTOR VEHICLE FUEL TANKS)
December 19, 2013

4 B. 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 extend data are available, perform an assessment of the socioeconomic impacts of the adoption, amendment, or repeal of that 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 limits 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.” Proposed amendments do n ot significantly affect air quality or strengthen emission limitations beyond those already enforced, nor does it result in a significant increase in emissions; therefore, no socioeconomic analysis is required.

C. Rule Consistency Analysis

Pursuant to CH&SC § 40727.2, District staff has prepared a rule consistency analysis that compares the elements of proposed amendments with the corresponding elements of other District rules, federal regulations and guidelines that apply to the same source category or type of equipment. District staff found that the proposed amendments and requirements of these rules would not conflict with federal rules, regulations, or policies covering similar stationary sources. The rule consistency analysis is presented as an appendix to the final draft staff report.

D. Environmental Impact Analysis

Pursuant to §15061 of the Guidelines for Implementation of the California Environmental Quality Act (CEQA), District staff investigated the possible environmental impacts of the proposed amendments to District Rules 4621 and 4622. Based on the lack of evidence to the contrary, District staff has concluded that the proposed amendments to these rules will not have any significant adverse effects on the environment. Staff recommends filing a Notice of Exemption under the provisions of Public Resource Code 15061(b)(3).

Rule Development Process

The District held two stakeholder meetings on August 28, 2013 and a public workshop

on October 10, 2013 to present, discuss, and hear comments on draft rule amendments. No public comments were received during the meetings or during the subsequent public comment period.SJVUAPCD Governing Board

ITEM NUMBER 8: ADOPT PROPOSED AMENDMENTS TO RULE 4621 (GASOLINE TRANSFER INTO STATIONARY STORAGE CONTAINERS, DELIVERY VESSELS, AND BULK PLANTS) AND RULE 4622 (GASOLINE TRANSFER INTO MOTOR VEHICLE FUEL TANKS)
December 19, 2013

5 On November 14, 2013, EPA submitted the following comment of support:

“ Based on the preliminary review of the revised draft rule identified above, we have no comments at this time. We support the District’s efforts to update the rules to meet EPA guidelines and to remove outdated rule language. ”

Proposed amendments to Rule 4621 and Rule 4622, and the Final Draft Staff Report were made available on and after November 19, 2013 for review and public comment. No further comments have been received as December 6, 2013.

FISCAL IMPACT:

The District expects no fiscal impact to result from this action.

Attachments: Attachment A: Resolution for the Proposed Amendments to Rules 4621 and 4622 ( 4 pages) Attachment B: Proposed Amendments to Rule 4621 ( 14 pages) Attachment C: Proposed Amendments to Rule 4622 (16 pages) Attachment D: Final Draft Staff Report with Appendices for the Proposed Amendments to Rules

4621 & 4622 (

34 pages)