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Exhibit CC 12-07-2010 Oral Communications XHI -IT 7 - l4 oral 6.6 v►kuncca`krnLS .BAY AREA AI Q UALITY . ANAGEMENT 60. D I S T R I C T Health Risk Assessment Evaluation of Toxic Air Contaminant Impacts AB2588 Air Toxics Hot Spots Program for Lehigh Southwest Cement Company, Plant #17 Precalciner Kiln, S -154 Facility Address: 24001 Stevens Creek Blvd. Cupertino, CA 95014 Director of Engineering: Brian Bateman Toxics Section Engineering Manager: Scott Lutz Toxics Evaluation Engineer: Ted Hull November 2008 Health Risk Assessment: Lehigh Southwest Cement Company (Plant #17) A. BACKGROUND: This Health Risk Assessment (HRA) has been prepared by the Bay Area Air Quality Management District (BAAQMD) for the Lehigh Southwest Cement Company (LSCC), which operates a cement manufacturing plant in Cupertino CA, in order to determine the current status of the company for the Air Toxics Hot Spots (ATHS) Program. The BAAQMD routinely conducts or reviews HRAs for new and modified sources of toxic air contaminants (TAC) in conformance with Regulation 2, Rule 5: New Source Review of Toxic Air Contaminants. In addition, the BAAQMD periodically reviews toxic emission reports from existing facilities under the Air Toxics Hot Spots (ATHS) Program to assess the potential for these facilities to pose significant risk to the public. If toxic emissions are above thresholds established by the BAAQMD, a refined HRA is required (see Appendix A, ATHS Overview). LSCC and /or the BAAQMD had prepared HRAs for the ATHS program and for Toxic NSR (proposed modifications to the cement plant); albeit, these analyses had focused on the precalciner kiln (S -154) because no other significant sources of TACs had previously been identified at LSCC. These HRAs had indicated that the company meets the health protective risk standards for Toxic NSR and for the ATHS program. However, recent information about other California cement plants (in Riverside and Davenport) and mercury emissions from LSCC have generated concern regarding the risk associated with LSCC; accordingly, the BAAQMD has prepared an updated HRA for the kiln at LSCC. In addition, considering the recent news about fugitive emissions of hexavalent chromium from Riverside and Davenport plants, the BAAQMD has required that LSCC prepare a comprehensive update to their toxic emissions inventory, including potential fugitive emissions from various material handling sources. The BAAQMD will review the updated emission inventory and assess the need for a new HRA. B: SUMMARY: The following is a summary of the health risk results for the operation of the precalciner kiln at Lehigh Southwest Cement Company. Maximum Cancer Risk: 4.2 in a million Maximum Chronic Hazard Index: 0.26 Maximum Acute Hazard Index: 0.13 Risks are less than BAAQMD action levels for public notification (cancer risk of 10 in a million and hazard indexes of one). 2 C. EMISSIONS SUMMARY: Emissions of toxic air contaminants (TAC) from the cement kiln are based on the results of numerous source tests conducted over a number of years (kiln was last tested in December of 2007). A summary of the estimated TAC emissions from S -154 is given below in Table 1. Table 1: Modeled Emission Rates TACs Mill On Mill Off Modeled Emissions Modeled Emissions (lb/hr) (lb/hr) (lb/hr) (1b /yr) Acetaldehyde 1.43E -01 9.81E +02 Antimony 5.40E -05 3.70E -01 Arsenic' 5.55E -05 3.81E -01 Benzene 2.53E +00 9.67E+03 Benzyl Chloride 6.07E -03 4.16E +01 Beryllium 5.57E -05 5.40E -05 5.57E -05 3.78E -01 1,3 Butadiene 5.29E -03 3.63E +01 Cadmium' 2.79E -05 1.91E-01 Carbon tetrachloride 3.67E -03 2.52E +01 Chloroform 1.72E -03 1.18E +01 Chromium VI 4.80E -05 5.04E -05 5.04E -05 3.34E -01 Copper 5.83E -04 6.89E -04 6.89E -04 4.22E +00 Dichlorobenzene 3.52E -03 2.41E +01 1,1 Dichloroethylene 1.90E -03 1.30E +01 Ethylene dichloride 1.42E -03 9.74E +00 Ethylene dibromide 3.60E -03 2.47E +01 Formaldehyde 8.17E -03 5.60E +01 Lead 1.43E -04 9.42E -05 1.43E -04 8.80E -01 Manganese 6.27E -04 4.67E -04 6.27E -04 3.97E +00 Mercury 2.24E -02 5.43E -02 5.43E -02 2.19E+02 Methylene chloride 1.53E -02 1.05E +02 Nickel 1.03E -03 7.55E -04 1.03E -03 6.50E +00 PCBs (high risk) 1.03E -06 7.06E -03 PCDDs/PCDFs (TEQs) 1.41E -08 4.78E -08 4.78E -08 1.66E -04 Perchloroethylene 3.18E -03 2.18E +01 Phosphorus 1.10E -02 7.54E +01 Selenium 5.79E -04 7.03E -04 7.03E -04 4.23E +00 1,1,2,2 Tetrachloroethane 2.41E -03 1.65E +01 1,1,2 Trichloroethane 3.20E -03 2.19E +01 Trichloroethylene 2.52E -03 1.73E +01 Vanadium 2.79E -04 1.91E +00 Vinyl chloride 1.71E -02 1.17E +02 Zinc 7.56E -03 7.22E -03 7.56E -03 5.11E +01 Notes: 1. Emissions below the detection limit. Emission rate is based on 1/2 the detection limit. Emission rates are based on 6,857.3 hours of operation per year. Where specific data is available, annual emissions assume the feed mill is operating (Mill On) 70% of the time and not operating (Mill Off) 30% of the time. 3 D. DISPERSION MODELING: The AERMOD air dispersion computer model was used to estimate annual average and maximum 1 -hour average ambient air concentrations for receptors in the area of the source. Model runs were made with onsite surface meteorological data and local land use data for 2 separate years, 1999 and 2006. Cloud cover data for the same time period was were taken from the San Jose International Airport ASOS station. Upper air data for the same time period was taken from the closest representative NWS radiosonde station that met the USEAPA required 90% data recovery rate, the Oakland International Airport radiosonde station. Land use at the facility was divided into 5 sectors: 347 ° -50 °, 50° -230 °, 230 ° -273 °, 273 ° -312 °, and 312 ° -347 °. The modeler assumed rural land use. Modeling results in terms of unit ground level concentrations were applied to TAC specific emission rates and unit risk factors for residential receptors to determine the Cancer Risk and the Chronic and Acute Hazard Quotients for each compound at a given receptor location. Thirty-day average lead concentrations were modeled separately using the highest estimated hourly emission rate. E. HEALTH RISK ASSESSMENT: The maximum health risks were estimated using guideline procedures adopted for use in the Air Toxics Hot Spots Program. The general ATHS approach involves using air emission estimates and dispersion modeling to estimate the facilities impact on ambient air concentrations of toxic air contaminants (TACs), and then using these concentrations to estimate an individual's maximum exposure and health risk based on exposure factors and toxicity values adopted by the Cal/EPA Office of Environmental Health Hazard Assessment (OEHHA). Estimates of residential cancer risk (probability of contracting cancer in terms of chances in a million) assume that potential exposure to annual average TAC concentrations occur 24 hours per day, 350 days per year, for a 70 -year lifetime; the concentrations for the 1999 and 2006 modeled years were averaged. The sum of the lifetime cancer risks for each compound provides the overall cancer risk. Unit risk factors for each compound were obtained from the California Air Resources Board's "Hotspots Analysis and Reporting Program" Version 1.4a (HARP). In addition to the inhalation exposure pathway, several of the TACs emitted have additional pathways related to oral ingestion and dermal exposure. Cancer unit risk values were determined using the Derived Adjusted analysis method. A Reference Exposure Level (REL) is an indicator of potential noncancer health impacts and is defined as the concentration at which no adverse noncancer health effects are anticipated. Noncancer chronic inhalation risk is calculated by dividing the substance - specific annual average concentration by the REL for that substance. This ratio is called a hazard quotient (HQ). Chronic hazard quotients can also be calculated for noninhalation pathways by dividing the noninhalation exposure (dose) by the oral REL for that substance. The sum of the inhalation HQ and the oral HQ for a substance is the overall chronic HQ. Hazard quotients are summed for substances that affect a particular organ system to yield a hazard index for that organ system. The highest hazard index value is the overall hazard index. Chronic hazard indexes were determined using the Derived OEHHA analysis method. Acute hazard quotients are calculated by dividing the maximum 1 -hr average concentrations for a substance by its acute REL; and summing HQs by affected organ systems to calculate the hazard index. Noninhalation pathways are not considered for acute risk. 4 The summary of health risks for S -154, precalciner kiln, at selected receptor locations are presented in the Table 2 below; receptor locations are indicated on the map in Figure 1. Table 2: Summa of Im s acts Total Impacts from Highest Risk Components Receptor Impacts at and Other Compounds of Interest Receptor Benzene Mercury I Chromium VI Dioxins/Furans Residential MEI 1 Cancer Risk (in a million) 4.2 2.8 N/A 0.49 0.56 Chronic Hazard Index 0.26 0.002 0.25 0.00002 0.0005 Acute Hazard Index 0.13 0.008 0.12 N/A N/A Residential (Typical) Cancer Risk (in a million) 2.1 1.4 N/A 0.25 0.28 Chronic Hazard Index 0.13 0.001 0.13 0.00001 0.0003 Acute Hazard Index 0.08 0.004 0.07 N/A N/A Monta Vista Park Area Cancer Risk (in a million) 0.3 0.2 N/A 0.04 0.04 Chronic Hazard Index 0.02 0.0001 0.02 0.000001 0.00004 Acute Hazard Index 0.01 _ 0.0008 0.01 N/A N/A Notes: 1. MEI (Maximally Exposed Individual) is a residential receptor that is located at the top of San Jacinto Road, Cupertino. 2. A residential receptor point in the impacted area that represents more typical risk. The chosen receptor is located at the junction of Stevens Canyon Road and San Juan Road, Cupertino. 3. Cancer risk is the average value from 2 years of modeled concentrations based on meteorological data from 1999 and 2006. Benzene: As shown above, a majority of the cancer risk associated with operation of the cement kiln is due to potential exposure to benzene, which is a known carcinogen, shown to cause leukemia. The majority of benzene emissions are from naturally occurring kerogens that are released by heating limestone in the kiln. Mercury: As shown above, Mercury makes up the overwhelming majority of the non - cancer chronic and acute risk associated with the cement kiln operation. T el..maximum chronic non - cancer risk for LSCC is due to potential exposure to mercury via the ingestion pathways [consumption of home grown produce (43 %), dermal absorption (48 %), and soil ingestion (9 %)], wtich has been shown to h va e a rcii f mune effects in the kidney. Mercury is also known to have neurological effects (via inhalation pathway); however the chronic H Q for the nervous system is 0.03 at the MEI. HRA guidelines include two default exposure factors for consumption of home grown produce: urban (assumes 5.2% of consumed produce is grown at residence) and nonurban (assumes 15% of consumed produce is grown at residence); based on the nature of the impacted area, urban consumption was assumed for this HRA. If a targeted receptor consumes little or no produce grown in the impacted area, actual risk would be less than the chronic HI reported in Table 2. The acute risks are based on reproductive /developmental effects caused by inhalation. Adverse health effects are not expected to occur, even for sensitive members of the population, for hazard indexes less than one. RELs are derived using uncertainty (safety) factors; therefore, a hazard index that exceeds one does not indicate that adverse effects will occur, rather, it is an indication of the erosion of the margin of safety and that the likelihood of adverse health effects is increased. 5 Lead: Lead emissions from Lehigh are subject to the following ground level concentration standards in micrograms per cubic meter Cg /m • < 0.30 _g /m (30 -day average): Hot Spots screening level for areas with average lead exposure *; from "Risk Management Guidelines for New, Modified, and Existing Sources of Lead" (California Air Resources Board, March 2001) The guidelines are based on the statistical probability of children having blood lead levels (BLLs) greater than the baseline level of 10 micrograms per deciliter (_g/dL) due to facility emissions. • < 0.15 _g /m (3 -month average): National Ambient Air Quality Standard (NAAQS), Revised October 2008. * Background lead exposure is classified as either "average" or "high ". High exposure areas are areas where the mean BLLs will be higher as a result of exposure to higher levels in dust and soil (typically from the use of lead in paint). High exposure is assumed for areas where the moan age of housing is 1960, or older, and more than 30 percent of persons for whom poverty status is determined have a ratio of income to poverty level less than 1.25. In a high exposure area, the approvable lead concentration is reduced to < 0.12 _g /m (30 -day average). Ambient air concentrations in the Bay Area are typically measured as 0.01 _g/m Table 3: Lead Impacts NAD 27 UTM Coordinates Highest Modeled Lead Concentrations: Receptor Type Easting (x) Northing (y) .'.0 -Day Average (.tg/m (meters) (meters) Highest Offsite 581,791 4,129,924 0.00004 Residential (Maximum) 582,021 4,129,753 0.00003 Residential (Typical) 582,561 4,129,603 0.00002 Monta Vista Park Area 582,531 4,130,353 < 0.00001 As apparent in Table 3, ambient lead concentrations from facility emissions are well below the Hot Spots screening value and would not significantly impact the NAAQS for lead. F. CONCLUSIONS / NEXT STEPS: The findings of this HRA are that the health risks from Lehigh Southwest Cement Company are below the action levels that the BAAQMD has adopted for the public notification under the Air Toxics Hot Spots Program: (Cancer Risk >10 in a million, Chronic & Acute Hazard Indexes > 1.0, and 30 -day average lead concentration > 0.30 _g /m Mandatory risk reduction levels are higher and are not triggered. The BAAQMD will reevaluate the status of Lehigh Southwest Cement Company for the Air Toxics Hot Spots Program upon receipt of LSCC's updated toxic inventory report and will determine if an updated HRA is necessary. 6 a �•P Figure 1. Receptor map (Cupertino) for Health Risk Assessment, Lehigh Sotrthwest Cement Company ma c . , ,F. , . 2 1 G # i •• , G 4 • 1 .. H .. m a , S° M, „✓ k ,' 1{� t Y lll. 14 x. ..b � { t t i k a :. ? ♦ a 11. t ,} + . y„ ";S .. y am ' • '� • gyp, r 7 "Aye w. my :.. . < 'b '+ ' T +. • , - • - - .- O ] ' ... a .. - �i i ' ; t .,� ., s . , , 7 1 , '''''.--\,- 1 A T = � „: ,. Lei .. .! T ..ire ; Pi *' - . , y r -. r < ik % ,. r. :,. �� r I : J ,. 6 e,,,.... i \ ,° . , , R1 Ni 411 : «. .pro a( �6t l � jl� � � ' a x ,w, -a ,a APPENDIX A •p Air Toxics Hot Spots Program Overview The Air Toxics "Hot Spots" Information and Assessment Act (AB 2588, Connelly, 1987) established a formal regulatory program for site - specific air toxics emissions inventory and health risk quantification that is managed by California air districts. Under this program, a wide variety of industrial, commercial, and public facilities are required to report the types and quantities of toxic substances their facilities routinely release into the air. The goals of the Air Toxics Hot Spots Program are to collect emissions data, to identify facilities with potential for localized health impacts, to ascertain health risks, to notify nearby residents of risks that are determined to warrant such notification, and to reduce significant risks. There are five steps to implementing the ATHS program. Guidelines have been developed for all five steps to establish a consistent, science - based, methodology for implementing the program. The five steps are briefly described as follows: • Air Toxics Emissions Inventory: Subject facilities are required to prepare and submit a comprehensive emissions inventory plan followe 'by a toxics emissions inventory report. Each facility's emissions inventory must be updated on a periodic basis (in order to reflect changes in equipment, materials, and production levels at the facility). • Prioritization: Each facility is prioritized for potentially significant health impacts based on the quantity and toxicity of emissions, and the proximity of nearby residents and workers. • Health Risk Assessment: Facilities that are determined to be "high priority" are required to prepare a comprehensive HRA. The air district and Cal /EPA's Office of Environmental Health Hazard Assessment (OEHHA) review the HRA. • Public Notification: If the health risks result from the facility's emissions exceed action levels established by the air district, the facility is required to perform notification to all exposed persons regarding the results of the HRA. The BAAQMD has established a cancer risk of 10 in a million and a noncancer Hazard Index of 1.0 as ATHS public notification levels. • Risk Reduction: If the health risks resulting from the facility's emissions exceed significance levels established by the air district, the facility is xtquired to conduct an airborne toxic risk reduction audit and develop a plan to implement measures that will reduce emissions from the facility to a level below the significance level within five years. The BAAQMD has established a cancer risk of 100 in a million and a noncancer Hazard Index of 10 as ATHS mandatory risk reduction levels. •A A