CALIFORNIA AIR RESOURCES BOARD

Fresno Convention Center
Wine Room, Second Floor
700 "M" Street
Fresno, CA

August 10, 1989
9:00 a.m.

AGENDA

89-14-1 Public Hearing to Consider the Adoption of a Regulation
Amending the New and Modified Stationary Source Review
Rules of the Eight San Joaquin Valley County Air
Pollution Control Districts.

Closed Session:

Litigation -- Authorized by Govt. Code Section 11126
(q)(1); Citizens for a Better Environment v.
Deukmejian, et al., and Sierra Club v. Metropolitan
Transportation Commission, et al.

SUMMARY

ITEM #89-14-1

Public Hearing to Consider the Adoption of a Regulation Amending
the New and Modified Source Review Rules of the Eight San Joaquin
Valley County Air Pollution Control Districts.

RECOMMENDATION

The staff recommends that the Board adopt the proposed regulation
amending the San Joaquin Valley districts' rules governing the
permitting of new and modified stationary sources. The proposed
regulation would lower the thresholds for the application of BACT
and for offsets to zero and 150 pounds per day respectively. In
addition to sources which may submit applications in the future,
the regulation would apply to sources which have pending
applications for authority to construct permits and to sources
which have authority to construct permits but have not yet
acquired a vested right to proceed under those permits.

DISCUSSION

At its May 11, 1989 meeting, the Board directed staff to notice
the adoption of a rule to amend the districts' new and modified
stationary source review rules based on the Board's oversight
authority and the Board's findings that the existing rules are
inadequate to prevent significant emissions increases from the
permitting of new and modified sources. The districts have
proposed to amend their rules to lower the threshold levels for
the application of BACT and the requirement for emissions offsets
as requested by the Board at its March 10, 1989 meeting in
Resolution 89-28; however, the amendments proposed by the
districts would apply only to new and modified stationary sources
whose applications for authority to construct permits were
determined to be complete after the adoption of the rule
amendments (approximately August 22, 1989).

The proposed regulation contains the lower threshold levels being
proposed by the districts for BACT and emissions offsets
requirements and a uniform definition of BACT. However, unlike
the districts' proposed amendments, the proposed regulation would
apply to stationary sources whose applications were pending on or
received after March 10, 1989 and to sources which have received
their authority to construct permits but which have not acquired
a vested right to proceed under those permits.

Based on a survey of the permitting activity in each of the eight
Valley districts, staff estimates that the proposed regulation
would result in emissions reductions of approximately 4 tons per
day of ozone precursors (NOx and hydrocarbons) as well as a
reduction of over one ton per day of SOx and one ton per day of
PM10. This estimate does not include additional emissions
reductions from sources who applied or will apply for permits
after the date of the survey (May 24, 1989).

The proposed regulation also sets forth the requirements and
procedures for determining whether a source has acquired a vested
right. Under California law, vested right is defined as the
right acquired by the holder of an authority to construct permit
proceed in accordance with the permit based on the performance of
substantial work and the incurring of substantial liability in
good faith reliance on the permit. The regulation provides that,
upon request, the Control Officer shall make a preliminary
determination whether a permit holder has acquired a vested
right; this determination will be reviewed by the ARB Executive
Officer who will either concur in or disapprove the
determination.

SUMMARY OF IMPACTS

There are potential costs impacts for persons and businesses
based on the potential additional requirements for control
technology and emissions offsets. The extent of costs will vary
broadly and will depend on the size and type of source. Staff
estimates that the annual maximum costs per ton of pollutant
reduced are: $17,500 per ton of ROC, $24,500 per ton of NOx,
$5,300 per ton of PM10, and $18,300 per ton of SOx.

Staff has not identified any adverse environmental impacts which
would result from the proposed regulation. The emissions
reductions which would benefit air quality in the Valley are
cited above.