AQMD ANNUAL Emissions Reports (AER) – CALENDAR 2019

The web-based annual emissions reporting system is now equipment-based. In other words, the criteria and toxic emissions from each piece of equipment at a facility will be reported separately from all other sources of emissions. The requirements are expected to remain almost the same as in the previous year.

Who is required to file?

• Facilities in the Annual Operating Permit Emission Fee Program. Those are companies who pay annual emissions fees for permitted equipment. Such facilities are subject to AQMD Rule 301(e) and are required to file when exceeding the corresponding reporting thresholds.
• Facilities whose permitted plus non-permitted emissions equal 4 tons or more per year of criteria pollutants (VOCs, NOx, SOx, PM, Specific Organics); or 100 tons or more per year of CO.
• Facilities that receive an Annual Emissions Report Package. However, it is the operator’s responsibility to file a report if necessary, even if the facility does not receive a notification from SCAQMD.
• Facilities which prior to July 1, 2000 had equipment listed as exempt.

What if I miss the deadline?

The SCAQMD 2019 Annual Emissions Reports (AER) are due by 5:00 p.m. on March 17, 2020. This report corresponds to Calendar Year 2019 reporting period (January 1, 2019 – December 31, 2019). If a facility misses the deadline and owes emission fees, late payment penalties in the form of a percentage of the emission fees will apply. The penalties are set forth in AQMD Rule 301(e)(10)(B) and are as follows:

Fees are determined based on rates in effect for the year when the emissions are actually reported, not the year wherein the emissions occurred.

Special circumstances

The AQMD has a Fee Review Committee to handle issues regarding fees and penalties. The agency requires records related to the AER to be kept for a minimum of five years.

What is new this year?

• New Emission Fee Rates: New emission fee rates are in effect for the 2019 Annual Emission Reporting Program for criteria pollutants, toxic air contaminants, and ozone depleting compounds in accordance with AQMD Rule 301(e).
• Increased Toxic Fees.
• 100% Electronic Certification and AER Report submittals (paperless, no hardcopy submittals necessary).
• Streamlined Online Payment Process.
• AB2588 Quadrennial Report: For 2019 AER, facilities in Phase 1A are required to file their Quadrennial Reports.
• The PIN codes will remain the same as in previous year.

AB 617

California Assembly Bill 617 by Cristina Garcia requires local air districts to take specific actions to reduce air pollution and toxic air contaminants from commercial and industrial sources. The communities of:

• Wilmington, Carson, and West Long Beach
• East Los Angeles, Boyle Heights, and West Commerce;
• San Bernardino and Muscoy.

Were selected as the first to participate in the AB 617 program. The SCAQMD has recently adopted Community Emissions Reduction Plans (CERPs) for these three communities. According to the District “The plans include specific actions that go beyond existing efforts by South Coast AQMD, including an implementation schedule, an enforcement plan, and a description of the process and outreach conducted to develop them.” CERPs were developed with input from residents who, in collaboration with SCAQMD, identified key sources of pollution and developed targeted emissions reduction plans to reduce community exposures to air pollution.

The California Air Resources Board (CARB) will consider adoption of the plans at one of its board meetings. Implementation of the plans will be handled by the District and CARB. Two additional communities (Southeast Los Angeles and the Eastern Coachella Valley) have been recommended for the next phase of the program and these recommendations will also be reviewed by CARB.

EQUATE SOURCE TESTING PROGRAM

In response to a directive by its board, the South Coast Air Quality Management District (SCAQMD) has created the EQUATE advisory group to address the increase in source test reports handled by the agency. EQUATE stands for “EMISSIONS QUANTIFICATION AND TESTING EVALUATION.”  In May of 2019, the South Coast AQMD Governing Board directed staff to convene a Working Group to assess the current source test submittal and approval process and to review default factors for emissions reporting.  Some of the issues this district advisory group is looking at are:

• Assessment of the Source Test Protocol/ Report Submittal and Review Process Used for Permitting and Compliance
• Annual Emission Reports under the AB 2588 Hot Spots Program
• Review of Default Emissions Factors for AER

The District uses source tests in a variety of ways, such as permit applications, compliance demonstration, certification for small equipment and air toxic emissions under AB 2588. According to SCAQMD, the agency receives approximately 882 source test reports per year; 630 of those are for compliance purposes and 230 for permitting purposes. The rest are related to the AB 2588 program and the Annual Emissions Reporting program.

The EQUATE group is in the process of developing a plan to set priorities for processing and evaluating the existing and anticipated future inventory of source test reports. The plan is expected to address the expected increase in source test reports volume due to the restructuring of the toxic emissions fees in Regulation III, including timeframes for reducing the current inventory of source tests as well as for completion of reviews within specified periods of time.  Staff has stated that they “will be initiating a review of default emission factors used for emissions reporting and, in consultation with the Working Group, update these factors as appropriate.” Industry representatives have expressed concern over the proposal as it is unclear how this process will impact sources tests that are underway. The next EQUATE meeting (tentatively scheduled for January 2020) will provide an update to the approved plan for review of source test reports and kick-off the review of default emission factors used for emissions reporting.

AQMP CONTINGENCY MEASURES PLAN ANNOUNCED

At its December 2019 board meeting, the SCAQMD approved a “Contingency Measure Plan” for the 1997 8-hour ozone standard. The Plan represents a joint strategy by South Coast AQMD and the California Air Resources Board (CARB) to address Clean Air Act requirements. The South Coast Air Basin (SCAB) is classified as an Extreme nonattainment area for the 1997 8-hour ozone national ambient air quality standard (NAAQS), with an attainment date of June 15, 2024. The attainment strategy in the 2016 AQMP includes both defined measures, as well as “further deployment of cleaner technologies” measures, as allowed under the federal Clean Air Act (CAA) section 182(e)(5). Under CAA requirements, development and adoption of contingency measures are required no later than three years before the attainment date.

In the 2016 AQMP, the attainment strategy was updated to achieve the 1997 standard in 2023. This new attainment demonstration still relies on emission reductions from future advanced technologies, with a total of 108 tons per day (tpd) of NOx from this category. When the CAA section 182(e)(5) provision is relied upon to demonstrate attainment, the area must also submit contingency measures to U.S. EPA. The Plan includes: 1) newly identified emission reduction strategies; 2) additional incentive funding to further accelerate the transition to the cleanest available technologies; and 3) federal measures and/or significant level of funding to achieve the required reductions from sources under federal responsibility. SCAQMD projects a total of Nitrogen Oxides (NOx) reduction of 24 to 26 tons per day, with 10.2 to 12.20 tpd at the local district level and 9.15 tpd from CARB. Table 1 lists the specific emission reduction strategies identified.

CARB is proposing “innovative new measures” such as : Tier 5 off-road diesel engine standard; state green contracting; reduction in single-occupancy vehicle travel growth; a locomotive emission reduction measure; vehicle miles traveled (VMT) and land conservation, regional VMT reductions, and co-benefits of climate. Although, specific details of the VMT reductions strategy have not been released to the public, the measure is highly controversial, as it would involve restricting the number of miles residents can travel and/or imposing additional taxes based on the number of miles traveled.

The District is considering applying a “regional transportation system pricing program” which would impose additional restrictions in an attempt to “encourage people to take public transit, carpool, bike, walk, and/or adjust trip times at congested times of day.” This program may involve charging fees for the use of certain lanes, driving into certain areas, parking in prime locations, driving at peak times, and/or utilizing non-pooled ride-hailing services. Additionally, SCAQMD is pursuing legislation to add a one-half cent sales tax increase, that could result in the agency receiving funding in the amount of about $1.4 billion per year.

The staff analysis in the Plan states that while total NOx emissions have decreased in South Coast by nearly 70 percent from 1997, NOx emissions from federal sources outside of California’s control have only decreased by 15 percent since 1997, and they are projected to increase in the future if federal action is not taken. “Absent federal action, attainment of the 1997 8-hour standard is not possible by 2023.”—commented SCAQMD staff.

RULE 1480- MONITORING FOR METAL PROCESSING OPERATIONS

Rule 1480 – Ambient Monitoring and Sampling of Metal Toxic Air Contaminants—was adopted at the December 2019 meeting of the SCAQMD Governing Board. The rule establishes a process to require certain facilities to conduct ambient monitoring and sampling of metal toxic air contaminants. A facility that is “designated” will be required to submit a Monitoring and Sampling Plan and conduct ambient monitoring and sampling. The rule essentially transfers the responsibility of conducting ambient air monitoring and sampling from the South Coast AQMD to the facility. It focuses on facilities with metal Toxic Air Contaminants (TACs) such as arsenic, cadmium, hexavalent chromium, lead, manganese, nickel, and selenium. According to SCAQMD staff, Rule 1480 complements Rule 1402 by requiring monitoring and sampling while the facility conducts a Health Risk Assessment and implements a Risk Reduction Plan under Rule 1402.

The “designation’ process includes an Initial Notice to let the facility know that South Coast AQMD staff is conducting monitoring and sampling near their facility. A Notice of Findings may be sent to notify the facility of the possibility of being designated as a Metal TAC Monitoring Facility and to share the information that South Coast AQMD staff has collected.

The facility can submit information to the District for consideration prior to the agency’s designation. The facility can choose to implement early emission reductions that go beyond the existing rules. Also, facilities can elect to implement further emission reductions, so long as they are enforceable measures.

If the estimated health risk at a sensitive receptor from the metal TAC emissions from the facility are greater than 100 in a million cancer risk or chronic Hazard Index of 5.0, the facility will be designated a Metal TAC Monitoring Facility and will be required to conduct monitoring and sampling.

The rule includes an alternative monitoring and sampling provision where the facility can elect to have the South Coast AQMD conduct ambient monitoring and sampling for a fee. Rule 1480 also has monitoring, reporting, and recordkeeping requirements, plus provisions to reduce and cease monitoring and sampling provided certain criteria are met. Representatives from the Metal Finishing Association expressed concern over the additional cost to industry. They reported that some facilities are spending hundreds of thousands of dollars to comply with Rule 1469 and the R1480 requirements may amount to an annual cost of $200,000. In response, staff included an exemption for facilities with 25 or fewer employees and average annual gross receipts of three million dollars ($3,000,000) or less, averaged over the previous three years.

INDIRECT SOURCE RULES FOR AIRPORTS

The concept of “Indirect Sources” as introduced by the San Joaquin Valley Air Pollution Control District, has taken root in the South Coast. The agency recently approved voluntary Memoranda of Understanding (MOU) with the airports (Los Angeles International Airport (LAX), John Wayne Orange County Airport (SNA), Hollywood Burbank Airport (BUR), Ontario International Airport (ONT), and Long Beach Airport (LGB) located in the region. The five commercial airports impacted committed to the development of Air Quality Improvement Plans (AQIPs). In addition, the airports will provide annual reports to SCAQMD.

The MOUs are voluntary agreements between SCAQMD and each commercial airport, with each party having specific responsibilities and commitments. Environmental groups have complained that these agreements do not go far enough and that regulations should be in place instead. Each airport developed comprehensive plans to reduce emissions from non-aircraft mobile sources related to airport operations. Measures included:

• Alternative Fuel Vehicle Policy which requires that medium and heavy duty vehicles be 13 years old or newer in order to operate and requires that vehicles meet Low Emission Vehicle (LEV) or the optional low-NOx standard.
• Alternative Fuel Vehicle Incentive Program which creates a $500,000 fund to incentivize the conversion of 20 heavy duty trucks to zero or near zero-emissions.
• Conversion to electric vehicles for shuttle buses, light duty fleets and sedan fleets.
• Public transit improvements including consolidated car rental, parking lot, and Metro connection.
• Increase in electric vehicle charging infrastructure.
• NOx reductions in emissions from Ground Support Equipment.

The District is making an enforceable commitment to the U.S. Environmental Protection Agency (EPA) to achieve the emission reductions associated with implementation of these measures and seeks to obtain credit towards the State Implementation Plan (SIP).

RULE 1403 (ASBESTOS OPERATIONS)

Rule 1403 – Asbestos Emissions from Demolition/Renovation Activities limits asbestos emissions from building demolition and renovation activities. These activities include the removal and associated disturbance of asbestos-containing materials, as well as the storage and disposal of asbestos containing waste material (ACWM) generated or handled by these activities. Asbestos containing material can be found in drywall joint compound, insulation (including that used in pipes), cement pipe, popcorn ceiling material, floor tile, gaskets, cement roof shingles and some paints and coatings. This rule applies to owners and operators but does not apply to owner-occupants of a residential single-unit dwelling when they conduct the renovation activity themselves.

The SCAQMD recently proposed amendments to the rule which added requirements and expanded applicability to “property owners, property lessors, asbestos abatement contractors, demolition contractors, general contractors, subcontractors, and asbestos consultants” to clarify that the rule considers all of these persons or entities subject to rule requirements. The proposal would require surveys to identify asbestos containing material, including on-site inspections of the project. Additional notifications to the SCAQMD will be required (there are some exemptions for emergencies) and there are new requirements for treatment and removal operations.

Stakeholders from various water districts and their associations provided comments to the District that focused on survey requirements relative to who can assess the presence of asbestos, the need for simplified procedures for underground pipe, and the need to address the recently discovered issue of asbestos in some asphalt samples. Regarding the asphalt issue, District staff has responded that asphalt is not part of the current rule, but during the rulemaking process, staff became aware that asbestos had been discovered in some samples of asphalt, including in samples from a parking lot in West Hollywood. Since becoming aware of those instances, staff has been requiring sampling of asphalt during rule-related work and is currently collecting data to determine how big of a problem it is and how to proceed. The timeline for adoption has been extended due to the concerns raised and the rule is expected to be finalized sometime in 2020.