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HomeMy WebLinkAboutMINUTES - 09161997 - D4 L D. q- Contra TO: BOARD OF SUPERVISORS �; ,�, Costa °`• '" County FROM: DENNIS M. BARRY, AICP •., :yti4 INTERIM COMMUNITY DEVELOPMENT DIRECTOR o�ST------ DATE: September 16, 1997 SUBJECT: Appeal by Communities for a Better Environment of the Zoning Administrator's June 9, 1997 finding that Tosco (Rodeo) was complying with Condition of Approval 79 of Land Use Permit (LUP #932038) . SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Deny this appeal and uphold the Zoning Administrator's decision concerning Tosco's compliance with Condition of Approval 79 (Land Use Permit #932038) . FISCAL IMPACT None. BACKGROUND/REASONS FOR RECOMMENDATIONS This Board Order supplements that prepared for the September 9, 1997 appeal hearing. A. Introduction: This appeal was first heard by the Board of Supervisors on September 9, 1997 . During that appeal hearing, Communities for a Better Environment (CBE) submitted new information as part of their public comment. They asserted that (1) Tosco (Rodeo) 's VOC fugitive emissions had actually increased rather than decreasing, (2) that the refinery's fugitive VOC emissions are now about 3300 lbs/day, which is 65% above the 2 , 000 lbs/day threshold , and (3) that the Air District concurred with CBE that Tosco (Rodeo) 's representation of its emissions was flawed. The Board of Supervisors accepted public testimony on this item and continued it to September 16, 1997 to respond to these assertions raised by CBE. CONTINUED ON ATTACHMENT: X YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMIT EE APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON September 16 , 1997 APPROVED AS RECOMMENDED x OTHER On Septarber 9, 1997, the Board of Supervisors contir-il to this date the bearing on the above ratter, nollaving ccaments frm David Kory, 1380 San Pablo Avealtr-, Rodeo, representing Tosco a-d Derry Larson, 500 � St-aet #506, San Francisco, representing Camm.mities for a Better Rvirmmnt, the public hearing was closed. IT IS BY UE BARD ORDM that the above recur a-dation is APPPOVED. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A x UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact:Debbie Sanderson - 335-1208 Orig: Community Development Department ATTESTED September 16. , 1997 cc: CBE - Denny Larson PHIL BATCHELOR, CLERK OF Tosco - Ric Bonner THE BOARD OF SUPERVISORS CO Y ADMINISTRATOR BYIA4"�D J , DEPUTY 2 . Condition of Approval 79 (copy attached) , requires Tosco (Rodeo) among other things (1) to reduce fugitive volatile organic compounds (VOCs) from 2 , 787 lbs/day to 2 , 000 lbs/day and (2) to maintain that level of reduction over time. This condition appears to have two goals - (1) to maintain emissions below 2 , 000 lbs/day and (2) to reduce emissions by 28% from the 1994 levels. The Condition also clearly indicates that it applies only to those fittings covered by BAAQMD Air District Regulations 8-18-304 and 8-25-304. The Condition does not state an emission methodology to be used to demonstrate compliance. Summary of New Information Staff has talked with (1) Mr. Steve A. Hill, Manager, Permit Services Division, BAAQMD, (2) other staff at BAAQMD, (3) staff from Communities for a Better Environment, and (4) staff from Tosco (Rodeo) refinery. A summary of information gathered in these discussions follows: Table 1: Estimated emissions of volatile organic compounds (VOCs) in pounds per day, for the Tosco (Rodeo) Refinery: (1) (2) (3) (4) Year Tosco (Rodeo) BAAQMD Source CBE Reported Self-Reporting Emission Emission Emission Estimates* Inventory* Estimates** 1990 1 2 , 160 2 , 050 1991 2 , 250 1992 1, 900 2 , 787 1993 1, 710 2 , 770 1994 1, 600 2 , 770 3 , 306 1995 1, 113 2 , 787 3 , 307 1996 890 1 3 , 322 *For equipment subject to Reg 8-18-304 and Reg 8-25-304 . ** For all sources of fugitive VOC emissions The Air District's Source Emission Inventory (Column 3) : This number is a very broad estimate used as a screening tool. It uses a general emission factor (reflecting average emissions in the entire district) and information submitted by the facility owner. • The methodology for calculating these numbers is not sensitive to changes at the refinery, and thus they do not change much from year to year. The Air District staff do not feel that these numbers are appropriate for evaluating year-by-year changes. These numbers are not used to evaluate compliance. The Air District has recently (September 10, 1997) adopted a new emission factor and has recalculated its Source Emission Inventory for Tosco (Rodeo) for this category of VOCs. The Air District's new VOC emission estimate is 670 lbs/day. This number is, again, a broad estimate, but it does reflect improvements district-wide since 1992 as well as our increased scientific knowledge of how to calculate emissions. CBE's Reported Emission Estimates (Column 4) : CBE's reported emission estimates are simply the Air District's Source Emission Inventory estimates. The numbers in CBE's September 3 , 1997 letter include all sources of fugitive VOC emissions at the refinery - the approximately 2770 to 2787 lbs/day for flanges, valves, and pumps (i. e. , those fittings subject to Condition 79) plus about 540 lbs/day due to other sources which are not subject to Condition 79 . 3 . Tosco (Rodeo) 's Self-Reporting Emission Estimates (Column 2) : These numbers are derived from the Tosco (Rodeo) refinery's on-site monitoring program, for the purpose of complying with Air District Regulations 8-18-304 and 8-25-304 . These are the only available estimates of emissions that are derived from on-site monitoring and actual fittings. The Rodeo refinery asserts it has made no major changes in its VOC emission estimation methodology since the early 1990's. The Air District cannot currently validate results of on-site self-reporting measures. Such a program is being put in place. In the meantime, the Air District staff has met with Tosco (Rodeo) staff and discussed their methodology. The Air District staff feels the methodology, as described, is appropriate, but have not been able to independently verify that the methodology was applied as described. Given that Tosco (Rodeo) 's emission estimate (890 lbs/day) is "in the ballpark" of the Air District's new estimate (670 lbs/day) , staff is not anticipating major shortcomings in the calculations. Staff Evaluation: First, CBE's estimates overstate Tosco (Rodeo) 's emissions by including other sources not subject to this Condition. In addition, CBE's estimates (assuming use of the appropriate categories) simply repeat the Air District inventory estimates. Second, the Air District's inventory estimates do not provide a meaningful measure of VOC emissions year-by-year at the Tosco Rodeo) refinery. As a result, County staff conclude that CBE has presented no evidence that supports their assertion that Tosco Rodeo) has not complied with this Condition. The Air District's newly calculated VOC emission estimate for Tosco (Rodeo) for 1996 (670 lbs/day) is, again, a broad estimate, but it does provide a useful reality check on the estimates provided by Tosco (Rodeo) (890 lbs/day) . Both estimates are well below the required threshold of 2 , 000 lbs/day day. Only the Tosco (Rodeo) self-reporting numbers provide consistent year-by-year information on these emissions. The methodology Tosco (Rodeo) purports to have used is considered appropriate by the Air District staff, and the end result (890 lbs/day) is consistent with the new Air District estimate. Therefore we believe it is reasonable to assume that Tosco (Rodeo) has applied the methodology correctly over time and that these emissions have decreased from about 1600 lbs/day (1994) to about 900 lbs/day (1996) - a decrease of 700 lbs/day or about 44%. Recommendation Based on the information discussed above, staff concludes that Tosco (Rodeo) has complied with both implied goals of Condition 79 - to reduce emissions to below 2 , 000 lbs/day and to reduce emissions by at least 28% -- for the equipment subject to BAAQMD Reg 8 -18-304 and Reg 8-25-304. Thus staff continues to recommend that the Board of Supervisors deny this appeal and uphold the decision by the Zoning Administrator that Tosco (Rodeo) is complying with Condition 79 and that compliance is ongoing. Should the Board want further assurance that Tosco has applied its stated methodology correctly, the Board might consider requesting the Air District to review Tosco (Rodeo) 's calculations as part of our next Annual Report review for this refinery. DS/aa BD/Tosco.DS �uPR3ao3g IGSc© C2O�c �J 19 77. Within three months of the effective date of the land use permit and every three months thereafter, the applicant shall submit to the Zoning Administrator, for review and approval, a written report outlining the progress of negotiations of a Good Neighbor Agreement. Good faith negotiations towards a Good Neighbor Agreement, as determined by the Zoning Administrator, shall be a condition of approval of the land use permit. If the Zoning Administrator finds that the applicant has not facilitated good faith negotiations, the Zoning Administrator shall notify the applicant of non- compliance with the conditions of approval and shall commence revocation proceed- ings for the land use permit. The applicant may appeal any revocation decisions directly to the Board of Supervisors. 78. If and when a Good Neighbor Agreement is negotiated, the applicant will submit the agreement to the Zoning Administrator for review and approval. The Zoning Administrator's approval will include, but not be limited to, consideration that appropriate public input has taken place in the negotiation of the agreement. The Zoning Administrator's approval of the Good Neighbor Agreement shall remove Condition of Approval #78 from this land use permit. Nothing in condition of approval #77 or #78 shall require public hearings unless the Zoning Administrator institutes revocation proceedings. Nothing in Condition of Approval #77 and #78 shall prohibit written public comment from being submitted to the Zoning Administrator in his or her consideration of the periodic report of negotiations of the Good Neighbor Agreement. a 79. Unocal shall complete the following steps to achieve on-site emission reductions for Volatile Organic Compounds (VOCs), according to the schedule identified below in this condition: By April 30 1995 Unocal will begin monthly monitoring of valves and pumps, which are currently subject to quarterly monitoring by BAAQMD regulations. Results of leak testing will be made available to representatives of the CAP and to the BAAQMD. When feasible, valves or pumps that are repetitive leakers will be replaced or upgraded (by utilizing advanced packing or bellows valves [for valves two inches or smaller] and canned pumps or double seals for pumps). Repetitive leakers are those pumps or valves that are found leaking more than two times in a one year period as defined by BAAQMD Regulation 8. For units in which there are no non-repairable valves (as defined by BAAQMD Regulation 8-18-304) or pumps (as defined by BAAQMD Regulation 8-25-304) monthly monitoring will not be required. When fugitive emissions are reduced to 2,000 lbs/day (currently these emissions are 2,787 lbs/day per BAAQMD source emission listing dated August 18, 1993), monthly monitoring may be discontinued. Unocal will maintain the level of reduction achieved during monthly monitoring. These represent a 28 percent or 787 Ib/day reduction (143 tons/yr). Reductions will be .attained by implementing the following projects. If monthly monitoring identifies additional emission sources Unocal will conduct appropriate repairs and replacement until the above-stated goal is attained. l.0IC)ScZ 20 A. Replace 12 <2" valves at Unit 228 with bellows valves. Complete by March 1 , 1996, or by an earlier date as unit maintenance schedules allow. B. Replace 40 valves at Unit 210 with bellows valves. Complete by March 1 , 1996, or by an earlier date as unit maintenance schedules allow. C. Replace an additional 28 <2" valves leaking at 10,000 ppm. Complete by March 1 , 1996, or by an earlier date as unit maintenance schedules allow. D. Install an additional 50 bellows valves (<2") by December 31 , 1996. E. Install an additional 50 bellows valves (<2") by December 31 , 1998, or by an earlier date as unit maintenance schedules allow. F. Reduce fugitive emissions on Unit 228 "zj" valves by nitrogen purging the valve stuffing boxes to vapor recovery for 25 specialized control valves. This conversion will be completed by February 28, 1995. G. Modify/replace seven pumps. Replace two pumps at Unit 215 with canned pumps; convert one pump at Unit 220 with a double seal; replace two pumps at Unit 228 with canned pumps; replace two pumps at Unit 240, one with a canned pump and convert the other to double seals. Completion by December 31 , 1996, or by an earlier date as unit maintenance schedules allow. H. Unocal will not seek emission reduction credits for any of the air pollution reductions in this agreement. I. Unocal purchases of emission reduction credits for offsets associated with the Reformulated Gasoline Project will be from sources as close to the local area as are available. 80. In the event of a major chemical release from the refinery, Unocal agrees to work with the Contra Costa County Health Services Department to provide early medical intervention for affected residents of the local communities. Unocal agrees to include County staff in training provided as part of clinic operations, to enhance Emergency Response Van preparedness. 81 . Unocal shall redesign its Reformulated Gasoline Project to avoid the use of anhydrous ammonia and shall replace all bulk deliveries of anhydrous ammonia with aqueous ammonia at the refinery by December 31 , 2001 . This phase out will result in a reduction of truck deliveries of anhydrous ammonia to the refinery. By December 31 , 1996 the number of truck deliveries shall decrease from 12 to 3 per year. By 2002, the remaining 3 deliveries of anhydrous ammonia shall be eliminated. Until then, truck deliveries of anhydrous ammonia shall be scheduled to avoid peak morning and evening commute traffic periods. Unocal shall evaluate the merit of utilizing vehicle escorts for truck shipments. TLS SEF 12 '97 17 :75 NO .005 F .0_ BAY AREA AIR QUALITY MANAGEMENT DISTRICT September 12, 1997 Denny Larsen Communities for a Better Environment 500 Howard Street, Suite 506 San Francisco, CA 94105 Dear Mr. Larsen: This letter is intended to address uestions which have been asked about the difference between fugitive emission estimates reported by the Tosco/Rodeo Refinery and those included in the District's emission inventories. The differences are due principally to the fact that different methodologies are used_ Additionally, Tosco's estimates include only valves and pumps, while CBE used the District estimates for all fugitive sources. Tosco/Rodeo uses the emission correlation equations developed by EPA based upon a 1993 API refinery study. This methodology uses the leak screening values, measured by inspectors in the field, to count the number of fittings in each leak category. The average leak rate (from the correlation equation) for the category is multiplied by the number of fittings in the category to determine total emissions. This approach utilizes refinery specific data to estimate emissions. The District has not yet accepted this methodology for use in preparing its inventory. This does not mean that the methodology is invalid; it only means that the District's issues regarding its use have not yet been resolved. The issues that the District plans to resolve in coordination with the refineries, EPA, and the California Air Pollution Control Officers' Association (CAPCOA) are: • EPA's correlation equations were published in 1995, and differ slightly from the correlations used by Tosco. These differences ire minor. • There is general agreement among the CAPCOA members that the EPA correlation is valid in the range below 10,000 ppm (the concentration at which the measuring tool "pegs"). District staff, however, believe that the factor for "pegged" leaks is not reliable; and is based on an inadequate sample size. We hope to develop a methodology that involves direct measurement of actual emissions from pegged leaks. 939 ELLIS STREET o SAN FRANCISCO. CALIFORNIA 94109 • (415) 771-6000 ® FAX (415) 929-8560 �jse"uowuE+ ID : SEP 12 '97 17 :36 [40 .005 P .03 Denny Larsen September 12, 1997 Page 2 O We do not, at this time, know if the leak screening procedure used at the refineries is the same as the technique used to develop the correlation. We do not plan to accept refinery-specific leak counts until this issue is resolved. We do not, at this time, know if the fitting counts used by the refineries follow the procedures used by EPA. Classification of fittings in light-and heavy-liquid categories greatly affects emission estimates. One of the outstanding tasks is the preparation of fitting counts that both the District and the refineries accept. Until now, the District has not used the correlation equations at all in its inventory. We have based the emissions in our database on industrywide factors developed in the early 1980s. These factors are adjusted based upon frequency of inspection, but are not capable of taking actual screening data into account. The District's emission calculations were not capable of showing the kind of improvements mandated by the County in the land use permit_ The District now feels comfortable with the correlation equations (with the reservations indicated above), and is proposing to adjust 1996 emission numbers (used for planning and for billing)to utilize the correlation methodology and industrywide leak rates to determine average emission factors for all refineries. Note that this approach still does not directly use the screening data for Tosco/Rodeo, and will still result in a different estimate of emissions. The District does not, however, feel comfortable utilizing refinery-specific data until the identified issues have been addressed, We plan to resolve this before next summer. I hope that this clarifies the reasons why the District's current inventory, and its forthcoming revised emission estimates, differ from the numbers submitted by Tosco/Rodeo. The difference lies in the methodology. Because the District's inventory has not been used for compliance, resolution of this discrepancy has not, been critical. Yourf ve , Steve III, anager Permit Services Division SAH,bIg cc_ Dale Iverson, Tosco/Rodeo Refinery Debra Sanderson, Contra Costa County FROM* TOSCO SFAR ROhEO (FRI) 01J. 12' 9T 32/ET. i Vis:02/N0. 3560 734544 P 1 Tosco Refining Company A Minion of TOSw Corporation San Frsneisco Area Retlnery m Rodeo ,rdm 1380 San Pablo A�enUn Rodeo.Cellfomrs 94572-1299 Talepnone_(610)741'-1,411 September 12, 1997 EAD-229-97 LOC-28 Ms- Debra R, Sanderson Environmental Monitor Contra Costa County Planning Department Community Development 651 Pine Street North Wing, Second Floor Martinez,CA 94553 Re-. Information Request LUP Condition#79 Dear Ms. Sanderson: In response to you request the.following information is provided: 1. Summary of annual fugitive self reporting data. The following table sumYnarizes our findings regarding past fugitive emission submissions valves and pumps by Rodeo as well as the 13AAQMD reponed.emissions. The methodology for the BAAQMD emissions is not known,however BAAQMD methodology is not based on emission monitoring results. Emissions Calculated for SFAR Rodeo Valves/pumps Year Rodeo BAAQMD lbs/day lbs/day 1.990 2050 2160 1991 2250 1992 1990 2787 1993 1710 2770 1994 1600 2770 1995 1113 2787 1-996 890 2. TOSCO methodology. Used the same methodology as recominended by EPA when screening values are available. Factors used were provided by the American Petroleum Association in their 1993 Study of Refinery Fugitive Emissions from Equipment Leaks dated April 1994. Upon review, FROM TOSCO S--'FAR RODEO (FRI) 09. 12' 97 13:33/ST. l`_}: _'?%N0. ;--�560i 4'j44 P 2 Ms. Debra.K Sanderson E,AD-229-97 September 12, 1997 LOC-28 Page 2 . the 1993 formula for light liquid pumps was found to be inerror;the error however resulted in higher reported emissions. In 1994 a change to include a factor for off-scale(pegged values)was added. No changes have been made since then. TOSCO believes the impact of the minor refinements to our procedure is small and has no impact on our compliance status. Sincerely, ale G. 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