AQMD ANNUAL Emissions Reports (AER) – CALENDAR 2021

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?

• Every facility that receives an Annual Emissions Reporting notification from South Coast AQMD, regardless of the estimated annual emissions levels, even if no fees are due, to update the facility’s emissions records.
• Every facility that has estimated annual emissions of four (4) or more tons of either sulfur oxides (SOx), volatile organic compounds (VOCs), nitrogen oxides (NOx), specific organics (SPOG), particulate matter (PM), or emissions of 100 tons per year or more of carbon monoxide (CO).
• Every facility subject to the AB 2588 Program for reporting quadrennial updates to its toxics emissions inventory (per Health and Safety Code Section 44344).

What if I miss the deadline?

The SCAQMD 2021 Annual Emissions Reports (AER) are due by March 17, 2022. This report corresponds to Calendar Year 2021 reporting period (January 1, 2021 – December 31, 2021). 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 oversee 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?

• AB2588 Quadrennial Report: For 2021 AER, facilities in Phase 2 are required to file their Quadrennial Reports.
• The PIN codes will remain the same as in previous year.

CARB’s Environmental Justice Initiatives

The California Global Warming Solutions Act of 2006 (AB 32) calls for the California Air Resources Board (CARB) to convene an Environmental Justice Advisory Committee (Committee) to advise the Board in developing the “Scoping Plan.” CARB is in the process of updating the 2022 Scoping Plan which, according to the agency, “will assess progress towards achieving the Senate Bill 32 2030 target and lay out a path to achieve carbon neutrality by mid-century.” CARB’s Environmental Justice Advisory Committee—comprised of representatives from communities in the State with the most significant exposure to air pollution, including but not limited to communities with minority or low-income populations—makes recommendations to CARB regarding the Scoping Plan.

At its December 1, 2021 meeting the Committee unveiled its intent to “drastically increase our ambitions to cut co-pollutants” and goals of “carbon neutrality” and “decarbonization.” Carbon is considered a co-pollutant. It is the Committee’s position that California must rely on well-established and proven direct emissions reductions strategies and not carbon sequestration or offsets. In addition, California should not award carbon credits for out-of-state projects and ensure Greenhouse Gas (GHG) emissions are not shifting out of state. Discussions centered around accelerating regulations so that emissions are “carbon negative” by 2030. “The goal should be to become carbon negative, not just carbon neutral—stated a document titled “Model Inputs and Scenario Design.”

The Committee is also calling for a fossil fuel phase out instead of combustion plus Carbon Capture, Utilization and Storage (CCUS). They want to have a zero carbon electricity grid by 2035 at the latest, accelerating the Renewable Portfolio Standard prior to the current target date of 2030. They are opposed to any scenario that includes combustion of any type. Any solution using combustion should only be considered a transitional tool and penalties should be assessed, according to Committee members.

Additionally, the proposal includes the concept of Vehicle Miles travelled (imposing taxes on consumers based on the number of miles travelled) and eliminating the need for vehicles wherever possible; ending oil drilling in California by 2035; requiring all new buildings to use electric appliances by 2030; and identifying additional pathways for “building decarbonization.” The proposal is expected to be finalized and presented to the CARB board by late 2022.

BACT Updates

The South Coast Air Quality Management District (SCAQMD) held meetings of their Scientific Review Committee (SRC) to discuss proposed updates to the Best Available Control Technology (BACT) Guidelines. The agency proposed the following BACT standards:

*Volatile Organic Compound
**Selective Catalytic Reduction

An entire meeting was devoted to the topic of Internal Combustion Engines (ICEs). SCAQMD has over 12,500 permits for Emergency ICEs—mainly used to provide electrical power—making the equipment one of the most permitted equipment categories. There are approximately 65,000 active permits for generators, fire pumps, water pumps, compressors and blowers.

BACT applies to new, modified or relocated stationary sources with an associated emissions increase. Lowest Achievable Emission Rate (LAER) is the federal equivalent of BACT. A new BACT/LAER standard is triggered when a certain technology is achieved in practice which is defined as being commercially available by one vendor, and in operation for more than 6 months for major sources and 12 months for a minor source. Additionally, in California, a cost effectiveness analysis is required for minor sources under the Health and Safety Code.

SCAQMD has identified two engines it is classifying as “emerging technology” which meet Tier 4 standards of the Environmental Protection Agency (EPA). The Tier 4 emission standards (in grams per kilowatt-hour) are:

• Nitrogen Oxides (NOx): 0.67
• Non-Methane Hydrocarbon: 0.19
• Carbon Monoxide: 3.5
• Particulate Matter: 0.03

Another two engines of over 1,000 BHP were identified as meeting the “Achieved in Practice” requirement with Tier 4 emission standards. Two manufacturers (Kohler and Cummins) have compliant engines that can participate in the SCAQMD’s Registration/Certification Program (not applicable to Title V facilities). The Bay Area Air Quality Management District and the Sacramento Metropolitan Air District also reported having Tier 4 engines that meet the “Achieved in Practice” criteria. Based on the findings, the SCAQMD proposes that Stationary Emergency ICEs with ≥1,000 BHP (non-agricultural or non-direct drive) at Major Source facilities meet Tier 4 emission standards. Except for EPA certified engines, ICEs must be source tested to prove compliance. Staff announced that while the requirements currently apply to Major Sources, they are in the process of examining those for Minor Sources.

Staff is also looking at non-fossil fuel technologies. Various industry representatives questioned the District’s rationale and expressed concern over increasing cost to facilities. The proposal is expected to be presented to the SCAQMD Governing Board for final approval in early to mid- 2022.

Air Quality Management Plan

SCAQMD has begun work on their 2022 Air Quality Management Plan (AQMP). The plan is the agency’s blueprint on how clean air standards will be met in the South Coast Basin. The District has formed the following working groups:

• Residential and Commercial Buildings
• Ocean-Going Vessels
• Aircraft
• Heavy-Duty Trucks Construction and Industrial Equipment
• Zero Emission Infrastructure

Control Measures targeting stationary sources include Volatile Organic Compounds (VOC), combustion related sources, energy efficiency and climate change. The specific VOC Control measures under consideration are:

• CTS-01 – Further Emission Reductions from Coatings, Solvents, Adhesives, and Sealants.
• FLX-02 – Stationary Source VOC Incentives.
• FUG-01 – Improved Leak Detection and Repair.
• MCS-01 – Improved Breakdown Procedures and Process Re-Design.
• MCS-02 – Application of All Feasible Measures.

The above measures were also included in the 2016 AQMP and will be updated as part of the 2022 plan. Industry representatives have voiced concerns over the implementation of CTS-01 in light of the potential elimination of the exemption for tertiary-Butyl Acetate (tBAc) and Parachlorobenzotrifluoride (pCBtF). There is also a measure for Improved Education and Public Outreach. Additionally, new measures are proposed for Wildfire Prevention, Assessing Emissions from Urban Vegetation and Emission Reductions from Cooling Towers.

The 2022 AQMP focuses on attaining the 70 parts per billion (ppb) 8-hour ozone National Ambient Air Quality Standard (NAAQS) by 2037. The District estimates that approximately 70 percent emission reductions of Nitrogen Oxides (NOx) are needed to meet the federal requirement. Air quality regulation and planning traditionally relies on additional tailpipe/exhaust stack controls, new engines technology, or fuel improvements tailored to individual use cases. “It is not clear how this traditional approach can result in additional ~70% control in South Coast”—stated staff. The District concludes that technology development, new funding and programs for research, development demonstration and deployment, analysis of fuels switch broadly across sectors, and identification of new regulations, policies and incentives will play a central role in the development of the 2022 AQMP. Environmental groups are not satisfied with a “near zero” emissions approach and are urging “Zero Emission” (ZE) standards. District staff asserts that “ZE infrastructure will not only be needed for mobile sources but also for stationary sources.”

The District has identified three main categories for NOx reduction: Residential Combustion Sources (emitting 9.8 tons per day); Commercial Combustion Equipment (emitting 14 tons per day) and Large Combustion Equipment (emitting 15.3 tons per day). The following table summarizes some of the control measures for NOx sources:

Regulators have been pondering the concept of reducing emissions from automobiles through policies that deter the public from increasing mileage on their vehicles. The concept has been referred to as “Vehicle Miles Travelled” or VMTs. There have been discussions at the state and local level about providing additional incentives for the public to use public transportation or alternative means of transportation such as bicycles, in an attempt to curb the use of vehicles. Proposed Control Measure MOB-14 seeks to promote telecommuting by requiring employers with more than 250 employees to mitigate commute trips into worksite through emission reduction strategies or other programs such as the “Employee Commute Reduction Program.”

After approval by the SCAQMD Governing Board, the plan will be submitted to the California Air Resources Board who plans to present it to the CARB Board in the summer of 2022. The plan will be then considered for inclusion in the State Implementation Strategy by the Environmental Protection Agency. The District announced that over a dozen rules will need to be amended in order to implement the elements of the AQMP.