State of California

Emerald Ballroom
Holiday Inn Golden Gateway
1500 Van Ness Avenue
San Francisco, CA

February 15, 1977
10:00 a.m.


77-3-1 Approval of Minutes of October 4, 1976 Meeting.

77-3-2 Status Report Regarding Floating Roof Storage
Tanks in the Bay Area.

77-3-3 Public Hearing to Consider a Proposed Regulation
of the Sulfur Content of Fuel Oil Burned by Power
Plants in the South Coast Air Quality Management

77-3-4 Report on air Pollution Control Problems at
Geothermal Power Plants. Continued to April

77-3-5 Public Hearing Regarding Amendments to Subvention

77-3-6 Other Business -
a. Executive Session - Personnel and Litigation.
b. Research Proposals.

ITEM NO. 77-3-2

Status Report Regarding Floating Roof Storage Tanks in the Bay


The staff recommends the Board: (1) request the BAAPCD to adopt
interim (and later final) seal gap criteria and (2) direct the
ARB staff to (a) work with the District to resolve the remaining
differences between a rule acceptable to ARB staff and the
current BAAPCD rule, (b) monitor the District's action, and
schedule a public hearing if differences remain unresolved.


During July and August 1976, an inspection of floating roof
storage tanks in the San Francisco Bay Area by ARB staff
disclosed significant deficiencies in the Bay Area Air Pollution
Control District (BAAPCD) Regulation 3.

In August 1976 the ARB recommended the following changes to
correct the deficiencies to the BAAPCD regulation: (1) delete
Sections 1208, 1212, 1214, 1215, and 3317, (2) redefine reactive
organic compounds, (3) delete the 5 percent head space reactivity
requirement of Sections 3102.4 and 3102.5, (4) define "vapor
balance system in good operating condition," and (5) define
"floating roof in good condition" as a floating roof that meets
SCAQMD Rule 463.

On January 19, 1977 the BAAPCD Board of Directors adopted
revisions to Regulation 3 with respect to floating roof storage
tanks. However, deficiencies remain in the revised Regulation 3.
They include: (1) the definition of a "floating roof in good
condition" does not include inspection criteria for allowable
gaps as does the SCAQMD Rule 463, (2) floating roof tanks are to
have a minimum vapor-loss control efficiency of only 90 percent,
which does not constitute the best control available, (3)
reactive organic compounds were not redefined in Section 2032,
(4) Section 3317 was not deleted, (5) the phrases "major
modification" and "modified in a major way" in the compliance
schedule are undefined, and (6) a compliance schedule was adopted
that is not expeditious.

ITEM NO. 77-3-3

Public Hearing to Consider a Proposed Regulation on the Sulfur
Content of Fuel Oil Burned by Power Plants in the South Coast Air
Quality Management District.


Adopt Resolution 77-6, thereby amending Rule 431 (Sulfur Content
of Fuels) of the South Coast Air Quality Management District to
require the burning of 0.25 percent sulfur fuel oil in power
plants as shown in Exhibit A attached to the Resolution.


At its August 1976 meeting, the Board directed the staff to
develop suggested regulations for the control of emissions of
sulfur dioxide from stationary sources. The staff has been
working on such regulations. However, in the meantime, Southern
California Edison Company (SCE) has advised the staff that it
could phase-in the burning of 0.25 percent sulfur (0.25%S) fuel
oil over the next sixteen months if a regulation were adopted to
require such fuel. SCE contends that the burning of 0.25%S fuel
oil on a continuous basis would be more effective in combating
sulfate episodes than the abatement actions required of
electrical utilities under the Board's Emergency Episode Plan.
The staff also has concluded that the reduction of the sulfur
content of fuel oil burned by power plants is necessary as a step
in the process of achieving the California air quality standards
for sulfates, total suspended particulate matter and visibility.

The 0.25%S fuel oil for power plants would be obtained primarily
from the refining of low-sulfur Indonesian crude oil. In
addition, such fuel oil may be produced by the refining of
Indonesian crude oil in combination with crude oil from other

ITEM NO.: 77-3-5

Public Hearing on Amendments to the Subvention Regulations.


Adopt Resolution No. 77-3, thereby amending the Subvention
Regulations as shown in Attachment I to the Staff Report.


As required by legislation enacted in 1972, the Board adopted
regulations for the administration of the State Subvention
Program. Since then the regulations have been amended a number
of times, most recently in 1974. The staff's experience in the
administration of the program during the last two years indicates
a need for further amendments to the Regulations. Such
amendments are being proposed for consideration by the Board at
this meeting.

The important proposed amendments are: to authorize increases in
per capita subvention amounts upon the approval of the Director
of Finance; to provide for initial disbursements to districts
earlier in the fiscal year; to allow control councils in air
basins with populations of less than 98,000 to meet only twice a
year; to delete the requirement that districts submit revised
applications, and instead require that they only report to the
Board changes to their programs; and to require that districts
receiving coordinated subventions adopt and submit joint powers
agreements to the ARB before July 15. Other amendments are
designed to clarify the Regulations and to make technical changes
such as correcting the statutory references to reflect the recent
recodification of California air pollution control laws,
eliminating masculine references, and correcting typographical