UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                            REGION IX
                        10O CALIFORNIA STREET
                    SAN FRANCISCO, CALIFORNIA 94111

                                   File PEA 4-4-9
                                        LA 76-5

Paktank Pacific Company
500 E. Carson Plaza Drive, Suite 221
Carson  CA  90746

Attention:  Melvin B. Yates
            General Manager

Dear Mr. Yates:

     Enclosed is the{Ambient Air Quality Impact Report for
Paktank Pacific Company's proposed construction of an 8.62
million barrel petroleum and petroleum product storage terminal
and related facilities on Terminal Island, Los Angeles Harbor,
Los Angeles, California.!

     On the basis of information submitted by Paktank Pacific
Company and the current air quality in the Metropolitan Los•
Angeles Air Quality Control Region, EPA has tentatively deter-
mined that the proposed project is a significant source of
hydrocarbon (HC) emissions and will result in an interference
with the attainment of the National Ambient Air Quality Standard
for photochemical oxidants in the Metropolitan Los Angeles Air
Quality Control Region.  EPA, therefore, intends to deny approval
for this project as proposed.

     A copy of the Impact Report is available for public inspec-
tion at the EPA Regional Office, 100 California Street, San
Francisco; EPA Region IX Contact Office, 300 North Los Angeles
Street, Room 2032, Los Angeles; and the Southern California
APCD, 350 West Mission Boulevard, Pomona.

     A public notice in the local newpapers will announce
this project,  SPA's proposed action, and the above mentioned
locations where the Ambient Air Quality Impact Report is avail-
able.  Comments on this proposed action may be submitted to
the EPA San Francisco Regional Office, ATTN:  Air Programs
Branch, for a period of thirty  (30) days following the date
of this public notice.  Unless substantive new information
is forthcoming, a final decision on the proposed action will
be made within 30 days from the close of the public comment
period.  Should we find a significant degree of public
controversy with respect to the proposed action, EPA may hold
a public hearing.

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                                                       16269
     Should you have any questions  concerning  this matter,
please contact Mr. Frank Covington,  Director of  the Air  &
Hazardous Materials Division at (415)556-0217.
                              Since'rely,
                                               -•£'>.
                              Paul"t»e Falco,vJr.
                              Regional Administrator

cc:  Southern California APCpv Pomona
       Attn:  Jeb Stuart L/
     California Air Resources Board,  Sacramento
       Attn:  William Lewis
     EPA Region IX Contact Office,  Los Angeles
     South Coast Regional Commission, CZC,  Long Beach

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                                   File PEA 4-4-9
                                        LA 76-5
              AMBIENT AIR QUALITY IMPACT REPORT
I.    Applicant

     Paktank Pacific Company
     500 E.  Carson Plaza Drive,  Suite 221
     Carson, California  90746

II.   Project Location

     This project is proposed to be located on Terminal
     Island, Los Angeles Harbor, Los Angeles,  California.
     The proposed site has an area of 80 acres and is currently
     part of Reeves Field, an abandoned Naval  Air Station.

III.  Project Description

     Paktank Pacific Company is  proposing to construct a
     bulk storage terminal for petroleum and petroleum products
     The project consists of 49  storage tanks  with a total
     capacity of 8.62 million barrels, associated equipment
     (including two boilers) on  the storage facility site,
     modifications to a berthing facility,  and new pipelines
     from the berthing facility  to the tankage area.  The
     storage tanks can be further described as indicated in
     Table I.

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         TABLE I



PROPOSED STORAGE TANKS
Product Type of Number of
Stored Tank Tanks
Gasoline Floating Roof
Subtotal
Crude Oil Floating Roof
Subtotal
No. 6 Fuel Oil Cone Roof
Subtotal
No. 2 Fuel Oil Cone Roof
Subtotal
Turbine Fuel Cone Roof
Chemicals Cone Roof
TOTAL
6
2
8
4
4
8
6
4
.10
2
4
8
14
1
JL
49
Tank Dimensions
Diameter(ft) Height(ft)
106
168
206
246
168
184
142
95
67
106
60
64
64
64
64
64
64
64
64
64
64
48
Tank Volume Total
(BBLs) Volume(BBLs
100,000
250,000
380,000
500,000
250,000
300,000
180,000
80,000
40,000
100,000
25,000
600,000
500,000
1,100,000
1,520,000
2,000,000
3,520,000
1,500,000
1,200,000
2,700,000
360,000
320,000
320,000
1,000,000
100,000
200,000
8,620,000
                 -2-

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IV.  Expected Emissions from the Project

     A,   Hydrocarbons (HC)

          The principal air contaminants from the proposed
          facility are evaporative losses of hydrocarbons from
          the storage tanks.  Based on information submitted
          by Paktarik Pacific Company (via their application,
          the project draft EIR and air quality assessment,
          and supplemental information requested by EPA)
          emissions of HC from the storage tanks at the facility
          (as proposed) have been computed.  Table II below
          summarizes those calculations.

                          TABLE II

  COMPUTED TOTAL HYDROCARBON EMISSIONS FROM THE STORAGE TANKS
                                             Total Computed
Product Stored	Number of Tanks	Emissions (tons/yr)

Gasoline                       8                  164.2
Crude Oil                      8                  115.3
No. 6 Fuel Oil                10                    3.6
No. 2 Fuel Oil and
  Turbine Fuel                15                   22.0
Chemicals	8	negligible	

     TOTAL                    49                  305.1

          These emissions were estimated utilizing EPA
          Document No. AP-421 and the data submitted by
          Paktank Pacific.  The equations in AP-42 are quite
          sensitive to the vapor pressure values used.  For
          this project, this sensitivity is of particular
          importance in the emission calculations for the
          No. 2 and No. 6 fuel oil storage tanks.  No actual
          data was available for the types of fuel oil and
          storage temperatures expected for the proposed
          facility.  Estimates of the vapor pressure para-
          meters were made using the API Technical Data Book
          based upon the average characteristics of similar
          materials.  Thus, the emissions could be somewhat
          greater or lesser depending on the actual properties
          of the material stored.

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     B.   Other Emissions

          Under the New Source Reviev; regulations (40 CFR
          52.233), EPA must reviex«; proposed construction and
          modification projects for their effect on the attain-
          ment or maintenance of the National Ambient Air Quality
          Standards (see Section VI-A following).   For the Paktank
          Pacific project, emissions of criteria pollutants from
          sources other than the storage tanks result from two
          boilers to be used to heat the high viscosity fuel
          oils.  These boilers will be fired by No.  2 fuel oil
          (or natural gas if available).  Design load emissions
          and operating emissions  (approximately 60% of design
          emissions) are summarized in Table III below:

                               TABLE III

                                   CALCULATED EMISSIONS
                         FROM THE PROPOSED BOILERS  (TON/YEAR)

                                                       Total
                         NOy	SO2    Particulates  HC    CO
Design load emissions
Operating emissions
48.7
29.2
38.2
22.9
14.0
8.4
1.8
1.1
2.4
1.4
V.   Meteorology

     The Metropolitan Los Angeles Air Quality Control Region
     has a "mediterranean" climate, with long, hot, dry summers
     and short, cool, mild winters.  The coastal sections of the
     AQCR have generally more moderate temperatures than the
     inland portions due to the direct influences of the mari-
     time climate  (particularly the ocean onshore breezes).

     Among those meteorological factors which influence air
     quality are the following:  wind speed and direction,
     amount of sunlight available, and thermal stability.
     Wind speeds in the Los Angeles area are generally low
     (19,74 annual average of 5.4 mph) with little seasonal
     variability.  The typical daily wind pattern is a
     morning sea breeze and a night-time land breeze.  The
     annual percentage of possible _sunshine is usually over
     70% (72% in 1974).

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     In addition, the Los Angeles area is subject to almost
     daily thermal inversions.  These occur in the morning
     hours approximately 90% of the time.  The overall average
     of surface inversions is eleven (11) days per month;  higher
     inversions, but less than 2500 feet above sea level,  occur
     on the average of 22 days per month.  These inversions,
     combined with low wind speeds and the geographical features
     surrounding the Los Angeles area, limit the vertical  and
     horizontal dispersion of air pollutants and make the  AQCR
     particularly prone to high level air pollutant concentrations.

VI. . Current Air Quality Considerations

     A.   Ambient Air Quality

          In 1971 the Environmental Protection Agency  (EPA)
          established the National Ambient Air Quality Standards
          (NAAQS)2 to safeguard the health and welfare of  the
          people of the United States.  Two levels of standards
          were developed:  a) primary ambient air quality
          standards are those which, based on air quality
          criteria and allowing an adequate margin of safety,
          are requisite to protect the public health, and
          b) secondary standards are those which, based on air
          quality criteria, are requisite to protect the public
          welfare from any known or anticipated adverse effects
          associated with the presence of air pollutants in the
          ambient air.  The National Ambient Air Quality Standards
          are listed in Table IV.
                              -5-

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                               TABLE IV
                NATIONAL AMBIENT AIR QUALITY STANDARDS2
  Contaminant
Sulfur Oxides (SOX):
Particulate Matter:
Carbon Monoxide (CO):
Oxidants (Ox):
Hydrocarbons (HC)
(Non-Methane)
       Primary

80 ug/m3 (0.03 ppm)
annual arithmetic mean;
  and
365 ug/m3 (0.14 ppm)
24 hr concentration*

75 ug/m3 annual geo-
metric mean; and

260 ug/m3 24 hr
concentration*

10 mg/m3 (9 ppm) max
8 hr concentration*;
  and
40 mg/m3 (35 ppm) max
1 hr concentration*

160 ug/m3 (0.08 ppm)  max
1 hr concentration*

160 ug/m3 (0.24 ppm)  max
3 hr (6 to 9 AM)
concentration*
Nitrogen Dioxide (N02):  100 ug/m3 (0.05 ppm)
                         annual arithmetic mean
   Secondary

1,300 ug/m3 (0.5 ppm)
3 hr concentration*
60 ug/m3 annual geo-
metric mean; and

150 ug/m3 24 hr
concentration*

  Same
                                                         Same
  Same
  Same
                                Same
^Maximum value not to be exceeded more than once per year

Note: The hydrocarbons standard is for use as a guide in developing
      implementation plans to achieve oxidant standards.
                                  -6-

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          As indicated in the 1974 Annual Report3 of the Los
          Angeles County Air Pollution Control District
          (currently the Southern California APCD,  Los Angeles
          Zone) and supported by California Air Resources Board
          data, Los Angeles County is not currently meeting
          the NAAQS for any pollutant except sulfur oxides
          (SOX).   As summarized in Table V, the number of days
          each year on which the NAAQS for oxidants and hydro-
          carbons were exceeded remained relatively constant over
          the last three years.

                                TABLE V
          DAYS ON WHICH THE NAAQS FOR OXIDANT AND HYDROCARBONS
          WERE EXCEEDED (BY YEAR) IN LOS ANGELES COUNTY

  Pollutant                        1972      1973      1974

Oxidant                            226       196       237
Non-Methane Hydrocarbons*          364       362       355

*The hydrocarbons standard is for use as a guide in developing
 an SIP to achieve the oxidant standard.

          For the criteria pollutants carbon monoxide (CO),
          nitrogen dioxide (N02), and particulate matter,
          similar but less extensive patterns exist for days
          exceeding the NAAQS in Los Angeles County.

          In summary, then, Los Angeles County can be
          characterized as having extreme difficulty in
          attaining the NAAQS for the criteria pollutants
          mentioned above.  Of particular concern is the
          oxidant standard because, as will be discussed
          further in Section VII, HC and NOX emissions are
          precursors to the formation of photochemical
          oxidants.

     B.   Current Emissions in Los Angeles County

          The Southern California APCD, Los Angeles Zone, in
          their 1974 Annual Report3 summarized emissions of
          air pollutants in Los Angeles County.  In order to
          demonstrate the magnitude of the current emissions
          and air quality problems, the data is further summarized
          in Table VI below  (also included is a summary of
          emissions from the proposed Paktank Pacific project).
                              -7-

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                          TABLE VI


                         1974 EMISSIONS IN LOS ANGELES COUNTY (TON/YR)

iource Category	Total HC   NQX   Particulates  S02	C0_
'etroleum Related Industry
)ther Stationary Sources
71,200
135,000
10,900
84,000
1,800
18,200
29,200
54,800
*
1,800
Fatal Stationary Sources     205,200   94,900    20,000    84,000       1,800
Baseline Powered Vehicles
)ther
fatal
Fatal
Transportation
Transportation

Sources
Sources

290
12
302
509
,000
,800
,800
,000
248
21
259
364
,100
,800
,900
,800
12,800
9,100
21,900
41,900
10
5
16
100
,900
,500
,400
,400
2,258,
73,
2,331,
2,332,
000
000
000
800
*No value given  in report referenced.


Paktank Pacific  Project
              Storage Tanks     305.1
              Boilers            1.8     48.7     14.0      38.2         2A_

              Total            306.9     48.7     14.0      38.2         2.4


              Although the projected emissions from the  Paktank
              Pacific  project seem relatively small compared to
              the  total emissions in Los Angeles County,  it must
              be remembered that ambient air concentrations of
              these pollutants (as well as photochemical oxidants)
              greatly  exceed the NAAQS.  The Paktank  Pacific pro-
              ject, as proposed,  is a major stationary source of
              criteria pollutants (particulary hydrocarbon emissions)
              and  would be expected to have adverse local and region-
              wide ambient air quality effects.

         C.   Allov/able Emissions of Non-Methane Hydrocarbons and
              Nitrogen Oxides

              Based on information obtained from the  California
              Air  Resources Board4 regarding emissions inventories
              and  ambient air quality measurements for 1973 in the
              Metropolitan Los Angeles-AQCR and Los Angeles County
              and  using a simple roll-back model,- allowable emissions
              of non-methane hydrocarbons and nitrogen oxides have
              been estimated for these two geographical  areas.  This
              information has been developed  (and summarized below)
              in order to demonstrate the magnitude of the current
              problem  and the difficulty of obtaining the NAAQS
              for  these pollutants.

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                          Emissions (ton/year)
                          Total         Non-Methane        Nitrogen
                          Hydrocarbons  Hydrocarbons       Oxides

Metropolitan Los Angeles AQCR
     1973 Emission Inventory   662,800       626,700         525,600
     Allowable Emissions        —-         100,400         355,100

Los Angeles County
  (Portion in Met LA AQCR)
     1973 Emissions Inventory  475,600       455,900         361,300
     Allowable Emissions        —          73,000         244,200
          Therefore, it  is  apparent that,  in order to attain
          the NAAQS  for  the respective criteria pollutants
          above, extensive  reductions  in pollutant emissions
          must be made.  These  desired emissions levels can
          only be obtained  by both reducing emissions from
          existing sources  and  limiting new emissions.

VII. Impact of the Project  on Ambient  Air Quality

     As is well known and documented,  reactive hydrocarbons
     and nitrogen oxides emitted to the atmosphere, in the
     presence of sunlight,  undergo a chemical reaction to
     form photochemical  oxidants.   This end product is the
     result of a very complex series of reactions and is
     generally referred  to  as "smog."   Based on the information
     summarized in the preceeding sections of this report,
     EPA concludes that  increases in hydrocarbon emissions
     in the Los Angeles  area (particularly of the magnitude
     proposed by Paktank Pacific Company)  will have a direct
     adverse impact  on the  attainment  of the National
     Ambient Air Quality Standard for  oxidant in the Metro-
     politan Los Angeles AQCR.

     Also of concern to  EPA is  the cumulative impact on air
     quality of all  new  proposed petroleum industry related
     development in  the  Los Angeles Harbor/Long Beach Harbor
     area.  This development is expected to include at least
     eleven large projects  (primarily  petroleum product storage
     facilities), in  addition to the Paktank Pacific project.
     This review included considerations of the air quality
     impacts of the  total expected development.  In addition,
     it should be noted  that each of the projects  individually
     is subject to the New  Source Review regulations and
     cumulative impacts  on  air  quality, both locally and
     regionally, will be considered in future analyses.


                             -9-

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VIII. Alternatives Considered

      During the evaluation of the Paktank Pacific project
      for this report, several alternative actions were con-
      sidered for their effect on ambient air quality and/or
      on reducing emissions from the project.  The following
      is a summary of the alternatives which were considered:

      A.   The "No Project" Alternative.

           The primary advantage of this alternative is the
           prevention of a significant stationary source of
           hydrocarbon emissions in the Los Angeles Harbor
           area and the resultant negative effects on the
           ambient air quality in the Metropolitan Los Angeles
           AQCR.  The probable resultant of the "No Project"
           alternative would be either:  a) the future con-
           struction of a similar large scale facility in
           some other area (see Section VIII - B below) or b)
           the possible construction of smaller storage
           facilities in a more dispersed pattern, probably
           at sites where the product being stored would be
           used as fuel.  Because large storage tanks are
           generally more efficient than smaller tanks in
           terms of controlling evaporative hydrocarbon
           emissions, centralized storage may be a preferred
           alternative over dispersed smaller tank storage.

           In the case of the Paktank Pacific project, as
           proposed, if it is assumed that the entire 8.62
           million barrels of storage capacity would be
           needed in the Metropolitan Los Angeles AQCR and
           (in the absence of the Paktank Pacific project)
           would be made up entirely of smaller tanks than
           those proposed by Paktank Pacific, hydrocarbon
           emissions would probably be greater with the
           smaller tanks assuming current state-of-the-art
           control technology.  EPA questions both these
           assumptions for the following reasons:  a) only
           3.7 million of the proposed 8.62 million barrels
           of storage are proposed for fuel oil storage
           (the most likely product requiring on site storage),
           b) on site storage at the larger customers might
           be of a similar tank size to_ that proposed by
           Paktank Pacific, and c) hydrocarbon emissions from
           fuel oil storage are much less than those for crude
           oil and gasoline storage.
                               -10-

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     In any event, any new construction of petroleum
     and petroleum product storage facilities would
     also come under the New Source Review program
     and would undergo a review similar to EPA's
     analysis of the proposed Paktank Pacific project.

B.   Alternative Sites.

     This alternative, from an air quality point of view,
     can be divided into two categories:  1)  alternate
     sites within the Metropolitan Los Angeles AQCR and
     2) alternate sites outside of the AQCR.   In the
     first case, it seems likely that our conclusions
     regarding the effect on ambient air quality would
     be the same due to the likely input of similar
     factors for size of source, emissions from the
     source, and existing ambient air quality.  In the
     second, an entirely new review would be required
     in order to make a determination regarding the
     effects of the proposed project using existing air
     quality in the new site AQCR as an input.

     The preceding discussion of alternative sites has
     not dealt with other factors such as need for the
     project, economic considerations, transportation
     availability, nearness to sources of product, etc.

C.   Alternative Emission Control Technology

     As indicated in Table I, the Paktank Pacific project
     is a mix of fixed roof and floating roof tanks.  The
     possibility of requiring alternative storage techno-
     logy was reviewed.  Specific considerations were:
     1) requiring floating roof technology for all storage
     tanks and 2) requiring the use of a facility-wide
     vapor recovery system.  The computed emissions from
     the project as proposed by Paktank Pacific and esti-
     mated emissions  (using AP-42 and data submitted by
     Paktank Pacific) resulting from the two alternative
     schemes are compared in Table VII below:
                       -11-

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                                    TABLE VII





     ESTIMATED TOTAL HC EMISSIONS FROM ALTERNATIVE STORAGE TANK TECHNOLOGIES (TON/YEAR)*
Product Number of Paktank Pacific Co.
Stored Tanks Project as Proposed
Gasoline
Crude Oil
No. 6 Fuel Oil
No. 2 Fuel Oil
and Turbine Fuel
Chemicals
Total '
8
8
10

15
8
49
164
115
3

22
305
.2
.3
.6

.0
.1
Utilizing
Roofs on
164
115
0

1
281
Utilizing Vapor
Floating Recovery Exclusively
all Tanks (95% efficiency assumed)
.2
.3
.3

.9
.7
118
91
0

1

211
.5
.2
.2

.1
__
.0
*These estimates do not include emissions from the proposed on-site boilers
                                           -12-

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          The disadvantages of using floating roof storage
          tanks for the fuel oil tanks include added cost
          and operating problems involved with using a
          floating roof tank for a high viscosity material
          which will be stored at an elevated temperature in
          an insulated tan]:.  Vapor recovery systems have
          the folloxving disadvantages:  high first cost plus
          much greater operating costs, natural gas blanketing
          requires material Xv7ith limited availability,
          potential fire hazards, and equipment operation
          problems.

          However, the crucial item is that even with the
          best case above, the hydrocarbon emissions are
          still in excess of 200 tons/year and the facility
          would still be a significant source of HC emissions.
          In addition, modifying the storage technology does
          not reduce emissions of the other criteria pollutants
          from the facility boilers,

IX.   Conclusions and Proposed Action

     Based on the information submitted by Paktank Pacific
     Company and that developed by EPA (as discussed above),
     EPA concludes that construction of the Paktank Pacific
     Company storage terminal as proposed would result in
     significant emissions of criteria pollutants  (particularly
     hydrocarbons) and would interfere in the attainment of
     the National Ambient Air Quality Standard for oxidants
     in the Metropolitan Los Angeles AQCR.  Therefore, the
     Environmental Protection Agency intends to deny the
     application of Paktank Pacific Company for an Authority
     to Construct under EPA's authority as promulgated in 40
     CFR 52.233 (g).
                             -13-

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                         References
1.    Compilation of Air Pollutant Emission Factors,  AP-42,
     Second Edition, U.S.  Environmental Protection Agency,
     April, 1973.

2.    Federal Register,  Vol. 36,  Number 84, April 30, 1971
     (40 CFR 50) .

3.    Air Quality and Meteorology, 1974 Annual Report,  County
     of Los Angeles Air Pollution Control District,  1974.

4.    California Air Resources Board, personal communications
     with California ARE staff members, on 11/18/75 and 11/19/75,

5.    Draft Environmental Impact Report, Paktank Pacific
     Company, Oil Storage Terminal Island, Los Angeles
     Harbor.
                               -14-

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