Minutes of the CAPCOA Title III Subcommittee Meeting March 21, 1996 Purpose of the Meeting: The purpose of this meeting was to address issues related to Title III of the federal Clean Air Act Amendments. Attendees: (see attached) Handouts: * Compliance Assistance Program for National Emission Standards for Hazardous Air Pollutants * Letter from Peter Venturini to the Districts regarding delegation (with attachments) * WSPA comment letter on the "California Pilot Program - Integration of State and Federal Air Toxics Programs" * Title III Subcommittee List (ARB, CAPCOA, U.S. EPA Region IX, and Industry) Items: 1. Report of Action Items from the January 24, 1996 Meeting A. Districts will provide comments to Lynn LaBarber (ARB) on the Draft Implementation Agreement by February 9, 1996 - since there are no additional comments, the Implementation Agreement will be sent out with the "Delegation" letter. B. The ARB will send the draft "Delegation" letter to the District Title III Subcommittee participants for their review and comment - a draft copy was distributed and discussed in Item #4. C. Brian Bateman (BAAQMD) will recommend if the Subcommittee should include some of CAPCOA's other committees into the public outreach and enforcement committee. Initial contacts with the managers revealed that they seemed to be more interested in peer review. Ben Shaw (SCAQMD) will take this issue to the Enforcement Managers meeting in April 1996. D. Brian Bateman (BAAQMD) will talk to Jack Bean (BAAQMD) about the coordination of the NESHAP Compliance Assistance effort with the Enforcement Manager Group - to be continued. E. Jorge DeGuzman (SMAQMD) will talk to Kelly Shear on the coordination of the NESHAP Compliance Assistance effort with the CAPCOA Public Outreach Committee - to be continued. F. The ARB will compile a list of compliance material currently available for the promulgated NESHAPs - Discussed in Item #2. G. ARB will collect outreach material on Dry Cleaning as an example for the Compliance Assistance effort - Discussed in Item #2. H. ARB will set up a conference call in late February to discuss what approach(s) the Subcommittee should take on the Compliance Assistance effort - Discussed in Item #2. I. Alene Tabor (SCAQMD) will provide a copy of the SCAQMD RFP for NESHAP Compliance Assistance material - work in progress. J. ARB will provide a draft copy of the Section 112 Industry Workshops summary report to the districts and to the industry representatives who participated as break-out session leads, panel members, or presenters. Comments were due February 23, 1996 - received a few comments, the report is ready for the final draft review and will be distributed to district participants. K. WSPA will review the Broad Program Approval concept paper and provide an initial reaction to the ARB by the end of February, 1996 - comments are in the handouts and to be discussed in Item #6. 2. NESHAP Implementation/Compliance Assistance The ARB staff reported on the activities underway to initiate a MACT Implementation Assistance Program. The goal of the program is to identify and develop information to assist the districts and the industry to implement the MACT Standards. The MACT Standards Workgroup will be responsible for the program. Individualized workgroups will initially be formed for Dry Cleaning, Chrome Plating, and Petroleum-Related MACTs (Petroleum Refinery, Marine Vessel Loading, and Stage 1 Gasoline Distribution). Other workgroups may be formed as industry decides on its level of involvement. A draft copy was distributed to provide information on the various workgroups and participants. ACTION ITEMS:  The Districts and the Industry should decide if anyone is interested in joining the MACT Implementation Assistance Program workgroups and select any categories to be researched.  The subcommittee members should notify the ARB if there is any other information available on the MACTs in the MACT Implementation Assistance Program.  The Marine Vessels Loading, Petroleum Refinery, and Gasoline Distribution NESHAPs will be combined into one category for the MACT Implementation Assistance Program. 3. Section 112(g) [Toxic NSR] Update The U.S. EPA plans to release a completely revised Section 112(g) proposed rule in late March 1996. The ARB and the district staff believe the proposed rule will only address new major sources and related modifications. The staff anticipates that the top down T-BACT process will be an accepted alternative in determining the MACT. 4. Delegation of NESHAP The ARB staff discussed an ARB draft letter concerning delegation of the NESHAPs. This draft letter discusses the process in obtaining delegation of the NESHAPs from the U.S. EPA. The ARB recommends the districts to take delegation of most of the NESHAPs. By taking delegation, the districts become the primary implementing agency for the NESHAPs. This will simplify the source reporting requirements by not requiring duplicate copies of reports to be provided to the U.S. EPA. Taking delegation will also allow a permitting agency to use the streamlining measures in the "White Paper 2". The ARB will continue to work with the U.S. EPA and the district staff on the development of this draft letter. ACTION ITEMS:  Any comments on the Delegation Letter should be sent to Alex Santos (ARB) by April 11, 1996. 5. Municipal Waste Combustors Plans The ARB staff reported that the U.S. EPA is requiring each state with existing municipal waste combustors (MWC) to submit a plan and to implement and enforce the U.S. EPA's MWC Guidelines by December 19, 1996. The U.S. EPA plans to release an updated guidance on the MWC plans in May 1996. 6. Section 112(l) Activities Status Report The ARB presented the following update: In August, 1995, the STAPPA/ALAPCO Section 112(l) Workgroup provided the U.S. EPA a list of 19 proposed amendments to the Subpart E regulation. The Subpart E regulation, which implements Section 112(l) of the Act, allows the U.S. EPA to approve alternatives to the National Emission Standards for Hazardous Air Pollutant (NESHAP) regulations. The Section 112(l) Workgroup co-directors Dick Valentinetti (VT) and Dan Donohoue (ARB) met with the OAQPS, OCG, & OECA staff on January 30 & 31, 1996 to further discuss amendments to Subpart E. To address the issues raised, the U.S. EPA formed five workgroups to identify approaches and recommend specific changes. These workgroups have been meeting by conference calls weekly since early March 1996. The workgroups are to develop concept papers by mid-April in identifying possible approaches and the advantages and disadvantages for each approach. These concept papers will be the basis for discussion at the Annual Air Toxic Working Meeting in North Carolina in mid-May. At this meeting, the states, local agencies, and the U.S. EPA staff will select the "best" approaches and begin preparing regulatory language for the proposed rule making in August 1996. Listed below are the five workgroups and the basic charge of each group. --Monitoring, Recordkeeping, and Reporting (MRR) Workgroup. This workgroup is developing an approach that would allow the state and local agencies to meet the specific criteria with greater flexibility and to determine alternative MRR requirements. --Work Practice Standards Workgroup. This workgroup is developing an approach to streamline equivalency determination for work practice standards. The workgroup is focusing on three NESHAPs (Halogenated Solvents, Wood Furniture, and Petroleum Refinery) in order to identify what information went into the U.S. EPA's decision for the work practice standards in each of these NESHAPs. The next step is to identify any acceptable or unacceptable alternatives based on the information used in the NESHAP development. It is hoped that by going through this activity the workgroup can identify the approaches in streamlining the determinations of equivalent work practice standards. --Test Methods Workgroup. This workgroup is focusing on how to expedite the review and approval of alternatives to the NESHAP identified test methods. The workgroup is looking at the broader delegation of authority in approving alternative test methods to the state and local agencies. --Equivalency by Permit. This workgroup is trying to develop approaches that would allow for a Title V permit or a district operating permit to serve as the vehicle for an equivalency determination. This workgroup is also focusing on delegation issues. --Broad Program Approval. This workgroup is focusing on issues associated with allowing a broad delegation of authority to the state or local agency in implementing alternative NESHAPs. In concept, the broad program approval would allow an agency to demonstrate that it meets rigorous criteria and in so doing receive broad flexibility to implement alternative NESHAP requirements. The cornerstone of the concept is that the emission reduction must be the same or greater than required by the NESHAP. 7. Section 112(j) [MACT Hammer] Update The U.S. EPA is expected to promulgate all the 1994 MACTs by the May 1996 - "MACT Hammer" date. 8. Presumptive MACT Update The ARB and the District staff reported on presumptive MACT activities in the following categories: - Steel Pickling - POTW - Boat (pleasure craft) Manufacturing - Semiconductor - Reinforced Plastic Composite Production 9. PTE/Federal Enforceability The ARB staff reported on the U.S. EPA's draft proposal " Effective' Limits on Potential to Emit: Issues and Options," dated January 31, 1996. This document presented two approaches for recognizing potential to emit limitations. One approach would be to accept potential to emit limitations in a district operating permit as being effective limitations. The second approach would be to only accept potential to emit limitations that are developed through a permit process which has been federally approved. The ARB staff have prepared comments in supporting the acceptance of potential to emit limitations contained in district operating permits. 10. Additional Action Items  Starting from the next Title III Subcommittee Meeting, there will be one combined agency and industry meeting for both the morning and afternoon session.  The ARB will coordinate a meeting between the ARB, the U.S. EPA, the districts, and the environmental groups to discuss current Title III activities and the involvement of the environmental groups. This meeting should take place in late April or early May.  Districts should send to the ARB a list of district representatives who will meet with the environmental groups.  ARB will compile a list of the various CAPCOA and STAPPA/ALAPCO workgroups for general information purposes. 11. Next Meeting Date and Location The next CAPCOA Title III Subcommittee will meet at the ARB office in Sacramento and the video conference room at the Air Resources Board in El Monte. The date for the next meeting is June 12, 1996.