PURPOSE

At the August 7, 2003 BWP Board meeting, the Board approved and recommends to the City Council a $10,000 Supplemental Grant Program to speed the replacement of dry cleaning equipment in Burbank in order to improve air quality.

BACKGROUND

A Council Member suggested that BWP consider providing assistance to local dry cleaners with their efforts to comply with the new South Coast Air Quality Management District (SCAQMD) Rule 1421.

In 1998, the SCAQMD conducted a study, which inventoried the top air contaminants in the basin. Chromium, formaldehyde, and Perchloroethylene (commonly referred to as PERC or PCE) are the top three contaminants in terms of prevalence. SCAQMD�s study inventoried PERC in the air basin and identified comparative PERC contributions to the following industries: motion picture film processing 2%; consumer products 4%; other at 4%; degreasers at 31%; and dry cleaning at 59%. SCAQMD�s most recent rulemaking addresses PERC in the dry cleaning industry.    

PERC affects the environment (air, soil, water and wastewater quality) as well as human health. PERC has been identified as a probable carcinogen. PERC is regulated by local, state and federal rules. The United States Environmental Protection Agency has listed PERC as a hazardous air pollutant and has promulgated National Emission Standards for Hazardous Air Pollutant Standards to control the emissions of PERC. Inhalation is the main route of human exposure, however, oral and dermal absorption are also possible. The health effects of PERC are to the central nervous system, eye and respiratory irritation, kidney, and gastrointestinal system/liver.

While PERC may affect water, the Burbank Operable Unit and GAC treat and remove PERC to non-detectable levels before drinking water is distributed to the community. PERC is also non-detectable in our MWD supply and in the water served to our customers.

In response to this significant air pollutant, the SCAQMD has recently established Rule 1421 that regulates PERC and provides for its elimination by 2020. In addition, SCAQMD has developed a grant program to help dry cleaners purchase new non-PERC dry cleaning equipment.

BWP staff proposed that BWP supplement the SCAQMD PERC Grant Program. Such a program was reviewed by the City Attorney and found to be in compliance with the CBE settlement.

BWP is proposing this program as it complies with the requirements of the CBE settlement and it would be easy to manage.

ANALYSIS

BWP�s discussions with the SCAQMD have centered on their latest Rule 1421, which was adopted on December 9, 2002. Rule 1421 is focused on the dry cleaning industry and reducing PERC air emissions, which is one of the top three contaminants in the basin. Because of the unique nature of the dry cleaning industry and that Rule 1421 requires a complete technology change, the SCAQMD has established its first ever grant program for a limited time to encourage dry cleaners to switch to non-PERC equipment. Given the fact that SCAQMD has established a grant program and that PERC is one of the top three air contaminants in the basin, BWP is recommending that funds be expended toward helping Burbank dry cleaners with a supplemental grant to SCAQMD�s to comply with Rule 1421. By offering a supplemental grant to SCAQMD�s, BWP will be helping to speed the reduction of PERC air emissions and improve the environment within the City of Burbank.

Rule 1421 considered the small business nature of the dry cleaning industry and that the gross revenues vary, but often reflect small profit margins in attempting to structure the regulations as to ease the economic burden. The capital costs for a small business to finance new

In the City of Burbank, there are 22 dry cleaners and three of them have switched to non-PERC alternative technologies. The three dry cleaners, in Burbank, that use non-perc equipment are: Milt & Edie�s Drycleaners, The Cleaning Store, and Toluca Lake Cleaners. Toluca Lake Cleaners received the assistance of the SCAQMD PERC Grant; the other two had already switched before Rule 1421 and were not eligible. Currently, there remain 19 dry cleaners within Burbank that will need to purchase non-toxic alternative dry cleaning equipment to comply with Rule 1421.

In March 2003, BWP reached a settlement with the Citizens For a Better Environment (CBE) where Burbank Water and Power (BWP) is to expend $10,000 to be used exclusively for the improvement of air quality within the City of Burbank.

BWP proposes that $2,000 Supplemental Grants be provided to the first five dry cleaners in Burbank who obtain a SCAQMD PERC Grant. This BWP Supplemental Grant will only be available until January 31, 2004. If fewer than five dry cleaners obtain a SCAQMD PERC Grant, the $10,000 will be divided equally by those Burbank dry cleaners who receive such SCAQMD Grants. This deadline, of January 31, 2004, will encourage dry cleaners to participant in this program. In the event that no Burbank dry cleaners apply for an SCAQMD PERC Grant by December 1, 2003, then BWP will use the $10,000 toward a low emission vehicle program.

FISCAL IMPACT

In March 2003, BWP reached a settlement with the Citizens For a Better Environment (CBE) where Burbank Water and Power (BWP) is to expend $10,000 to be used exclusively for the improvement of air quality within the City of Burbank. Establishing a supplemental grant program to augment SCAQMD�s would be an appropriate expenditure to fulfill this commitment by reducing the PERC air emissions, and thereby improving the air quality in the City of Burbank. This expenditure will be funded by Power Supply Electric Generation Fund 62735 Emission Credits.

RECOMMENDATION

The Burbank Water and Power Board approved and recommends to the City Council a Supplemental Grant Program as described above and further recommends that the City Council appropriate the necessary funds from the Power Supply Electric Generation Account 62735 Emission Credits.  

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H:BWP expend CBE settlement funds2

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