SCAQMD to Sue EPA

The South Coast Air Quality Management District (SCAQMD) has notified the Environmental Protection Agency (EPA) of its intent to file a lawsuit (sometime in June 2022) pursuant to the Clean Air Act (CAA). SCAQMD contends that the EPA is violating the CAA by “failing to timely act on a State Implementation Plan (SIP) submittal on contingency measures submitted by the South Coast AQMD on December 31, 2019.” According to the Notice of Intent to Sue, EPA was required to act on the plan by June 30, 2021. SCAQMD argues that the South Coast region cannot attain the 1997 8-hour ozone standard without “massive emission reductions” from federal sources (sources for which neither South Coast AQMD nor the State can set emission standards) such as ships, locomotives and aircraft. The district estimates that the region needs an additional 46 tons per day (tpd) of Nitrogen Oxides (NOx) reductions by 2023 in
order to attain the standards. The Notice explains that lack of further reductions from federal sources equates to 128 tons of reductions from state and locally regulated sources. This would mean completely eliminating all emissions from stationary and area sources (49 tpd), all emissions from California-regulated on-road vehicles (69 tpd), and 10 tpd of California-regulated off-road sources, such as larger farm and construction equipment.

EPA disapproval of the contingency measure plan, on the basis that it relies on federal measures, would trigger sanctions. The sanctions include greatly increasing the cost and difficulty of issuing permits as well as cutting off federal highway funds. At a recent meeting of the SCAQMD board, industry representatives expressed concern of a coming “permit moratorium” that would essentially put permit applications in regulatory limbo. SCAQMD contends that the SIP must be approved, and EPA must develop a regulatory strategy and find sufficient funding to reduce federal emissions to meet the health-based National Ambient Air Quality Standards. The Notice states: “… the only lawful exercise of the Administrator’s duties would be to approve the SIP submittal in acting under 42 U.S.C. § 7410(k)(3). Because EPA has failed to take required action by the statutory deadline, EPA is now in violation of CAA Section 110(k)(2) and (3); 42 U.S.C. § 7410(k)(2) and (3).”

SCAQMD Permit Exemption Rule under Revision

In response to comments from U.S. EPA and industry requests, SCAQMD proposes amendments to Rule 219 – Equipment Not Requiring a Written Permit Pursuant to Regulation II and Proposed Amended Rule 222 – Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation II. Thus far, the district has held two public consultation meetings and presented the proposal at the June 2022 meeting of their Stationary Source Committee. District staff anticipates “extensive changes to Rule 219” will be needed in order to address EPA’s request for additional recordkeeping and exemption demonstration as well as eliminating references to Rule 222, so as to make Rule 219 a “standalone” regulation.

Recently, the district’s Governing Board directed staff to review provisions for printing and coating processes. Staff proposes additional amendments that would exempt modifications to printing and coating processes from requiring a permit in specific instances where there are:

  • No emissions or throughput increases above the permitted limits
  • No addition of toxics
  • No physical modification of the equipment listed in the existing Permit to Operate

The proposal to regulate throughput generated opposition from the business community, who argued that the district should not be in the business of regulating the number of parts a facility can produce or print, but should be rather focused on actual emissions to the air. A new provision would require facilities to submit information to demonstrate risk levels are below the Rule 1401 (New Source Review of Toxic Air Contaminants) thresholds upon request.

Additional recordkeeping requirements include maintenance of daily or monthly records for a minimum of five years. Facilities claiming an exemption(s) shall provide Material Safety Data Sheets (MSDS), VOC-containing material throughput or emissions, any purchase and/or usage records of hazardous air pollutants, hours of operation, fuel type and usage, operating parameters and manufacturers specifications. Staff will present sections of rule language over multiple working group meetings and the rule is scheduled for adoption sometime in 2023.

AQMP Development Underway

The South Coast Air Quality Management District has released a draft of the 2022 Air Quality Management Plan (AQMP), as well as several companion “Policy Briefs.” The AQMP is the agency’s road map on how it will achieve air quality standards. The briefing papers are intended to provide policy background information supporting adoption and implementation of the 2022 AQMP. In August 2018, the U.S. Environmental Protection Agency (EPA) designated the Basin as “extreme” nonattainment. The EPA requires areas that do not meet a National Ambient Air Quality Standard (NAAQS or standard), such as the South Coast Basin, to develop and submit a State Implementation Plan (SIP) for approval. SIPs are used to show how the region will meet the standard. Regions must attain NAAQS by specific dates or face the possibility of sanctions by the federal government and other consequences under the Clean Air Act (CAA). This can result in increased permitting fees, stricter restrictions for permitting new projects, and the loss of federal highway funds.

The previous AQMP was developed in 2016 and addressed the 1997 8-hour and 2008 8-hour ozone standards, as well as Particulate Matter (PM) 2.5 standards. The Draft 2022 AQMP focuses on attaining the 2015 8-hour ozone standard of 70 parts per billion (ppb) — the most stringent standard to date. According to the draft plan, meeting the standard will “require substantial emission reductions above and beyond current programs. We project that emissions of NOx – the key pollutant controlling formation of ozone – must be reduced by 71 percent beyond what we would achieve through current programs by 2037 to meet the standard.”

In the Basin, mobile sources — heavy-duty trucks, ships, airplanes, locomotives and construction equipment — account for more than 80 percent of NOx emissions. Meanwhile, stationary sources — such as power plants, refineries, and factories — will be responsible for the remaining 19 percent by 2037. The majority of the South Coast AQMD’s regulatory authority is for stationary sources with only limited authority to control mobile sources. Therefore, the plan relies heavily on the EPA’s ability to reduce emissions from mobile sources. The control strategy for the 2022 AQMP includes aggressive new regulations and the development of incentive programs to support early deployment of advanced technologies. The two key areas for incentive programs are (1) promoting widespread deployment of available Zero Emission (ZE) and low NOx technologies and (2) developing new ZE and ultra-low NOx technologies for use in cases where the technology is not currently available.

Control Measures include emission reductions from residential and commercial combustion sources such as cooking/stoves, water heaters and space heaters. Swimming pool heaters, laundry dryers, and barbecue grills are also on the list of sources identified for emission reductions. On the industrial side, the SCAQMD proposes control measures to reduce Nitrogen Oxides (NOx) for the following:

  • RECLAIM Facilities
  • Permitted Boilers and Process Heaters
  • Permitted Non-Emergency Internal Combustion Engines
  • Permitted Emergency Standby Engines
  • Large Turbines
  • Electricity Generating Facilities
  • Petroleum Refineries
  • Combustion Equipment at Landfills and Publicly Owned Treatment Works
  • Miscellaneous Permitted Equipment

Volatile Organic Compounds (VOCs) Control Measures include:

  • Industrial Cooling Towers
  • Coatings, Solvents, Adhesives, and Lubricants
  • Stationary Source VOC Incentives
  • Urban Vegetation
  • Permitted Emergency Standby Engines (over 50 brake horsepower)

The SCAQMD estimates there are over 12,000 internal combustion engines currently permitted for emergency standby power. Due to the essential nature, limited operations of these engines, and high replacement costs, multiple approaches are proposed to reduce emissions from this source category. Through an education and outreach program, the agency hopes to encourage the transition to zero-emission technologies. Regulatory strategies include replacing older, higher emitting engines with cleaner engines or with alternative technologies, requiring the use of lower emission fuels, and a “future prohibition of the use of Internal Combustion Engines for emergency backup power.”

The Draft plan seeks further emission reductions from coatings, solvents, adhesives, and lubricants: The proposed control measure further limits the allowable VOC content in formulations and incentivizes the use of super-compliant technologies. Categories to be considered include but are not limited to metal part and product coatings, automotive refinishing coatings, adhesives, and sealants. According to the agency, “Use of super-compliant zero and low VOC materials, such as powder coating, aqueous coatings, and some ultraviolet light, electron beam, and light emitting diode cured coatings, eliminate or substantially reduce emissions compared to similar products that are not zero or low VOC products.” The Plan incorporates incentive funding to facilitate the adoption of clean, low VOC emission technologies from stationary sources. Facilities would be able to qualify for incentive funding if they use equipment or accept permit conditions which result in cost-effective emission reductions that are beyond existing requirements.

The Draft Plan is currently scheduled to be presented to the SCAQMD Governing Board for adoption in August 2022. If adopted, it will be forwarded on to the California Air Resources Board and then to U.S. EPA.

SCAQMD Announces $5 Million in Funding as CARB’s Phase out of Hex Chrome Looms

At a recent meeting of their Stationary Source Committee, SCAQMD staff unveiled a new program which would allocate $5,000,000 in funding to projects that eliminate hexavalent chromium. Chrome plating is used for decorative plating, hard chrome plating and chromic acid anodizing. These facilities will be impacted by the California Air Resources Board’s (CARB) proposed new regulations, which includes a complete ban by 2039. Effective January 1, 2024, hexavalent chromium will not be allowed for use by decorative chrome plating facilities and by January 1, 2026, all decorative plating facilities must transition to trivalent chromium or another hexavalent chromium-free alternative. CARB has determined that trivalent chromium is a safer alternative to hexavalent chromium and has been proven as a technologically–feasible alternative to decorative hexavalent chrome plating.

In response to CARB’s proposed regulation, SCAQMD is revising an existing financial incentive program by issuing a new solicitation that would provide incentive funds (up to $5 Million is available) for hexavalent chromium facilities to switch to trivalent chromium plating technologies, or other less toxic alternatives in lieu of hexavalent chromium. According to the district, the program “targets projects in environmental justice communities to achieve emission reductions beyond existing regulatory requirements, and further decreases community exposure to hexavalent chromium.”

Eligible facilities will receive financial assistance to purchase and install the equipment necessary to switch to non-hexavalent chromium metal finishing alternatives. Facilities would be responsible for ongoing operation costs such as maintenance, repair and spare parts. Up to $300,000 in funding would be available for each project and the project emissions reductions must be in excess of those otherwise required by applicable federal, State, or local rules & regulations. The district in undertaking efforts to identify contractors that can provide engineering, design and installation services to small businesses who may not have the capacity to identify contractors to implement these projects. Facilities can work with their own contractors or can elect to work with contractors identified by South Coast AQMD.

The Stationary Source Committee approved the program at their June 2022 meeting. It was finalized by the full Governing Board on August 5, 2022. Proposals will be reviewed and contracts issued until funding is exhausted. Funds allocated for this program must be completely expended prior to June 30, 2024.