AQMD ANNUAL Emissions Reports (AER) – CALENDAR 2020

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 2020 Annual Emissions Reports (AER) are due by 5:00 p.m. on March 17, 2021. This report corresponds to Calendar Year 2020 reporting period (January 1, 2020 – December 31, 2020). 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:

Payment received datePenalties
Less than 30 days late5% of reported amount
30 to 90 days late15% of reported amount
91 days to 1 year late25% of reported amount
More than 1 year late[See Rule 301 subparagraph (e)(10)(D)]

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 2020 Annual Emission Reporting Program for criteria pollutants, toxic air contaminants, and ozone depleting compounds in accordance with AQMD Rule 301(e).
  • AB2588 Quadrennial Report: For 2020 AER, facilities in Phase 1B are required to file their Quadrennial Reports.
  • The PIN codes will remain the same as in previous year.

SCAQMD COVID-19 EXPEDITED PERMIT PROGRAM

The South Coast Air Quality Management District (SCAQMD) announced a program to expedite permits for businesses who are “changing operations or repurposing efforts to aid in supply issues in response to COVUD-19.” Permit applications for eligible businesses will be expedited and normal fees will apply. There will be no additional fees imposed for this program.

Permit applications should be labeled “COVID-19 Permit” and include the usual information required of all applications, including but not limited to equipment and process descriptions, flow diagram and process rates, operating schedule, pollution control equipment, stack/exhaust emissions and specific description how the project is critical to the COVID-19 response.

“South Coast AQMD is sensitive to the challenges currently facing residents and businesses within our jurisdiction and are available to provide support during this difficult time”—read the agency’s statement.

Earlier this year, the agency unveiled a new online Permit Application tracking tool (available to all applicants) where businesses and organizations can now track submitted permit applications from start to finish. Once a permit application is submitted, applicants and the public can check its current status, as well as additional details including: a full timeline of the permit process from start to finish; if information or action is still needed from the facility such as data, reports, fees, or source tests; and if the permit is being processed or has triggered additional evaluation steps from the District. The new online tool is being integrated into the existing Facility INformation Detail (FIND) system where the public can search for information about regulated facilities.

BEST AVAILABLE CONTROL TECHNOLOGY GUIDELINES

PollutantAverage ($/ton)Incremental ($/ton)
Reactive Organic Gas (ROG)31,38094,140
Nitrogen Oxides29,67188,859
Sulfur Oxides15,69047,070
Particulate Matter (PM10)6,99120,817
Carbon Monoxide6211,786

The proposed guidelines reflect changes to the New Source Review (NSR) regulations as related to PM2.5. They now list Volatile Organic Compounds (VOCs) as one of the principle precursor gases that contribute to secondary PM2.5. A net emission increase of forty (40) tons per year is considered “significant.” PM2.5 NSR applies to a new major polluting facility, major modifications to a major polluting facility, and any modification to an existing facility that would constitute a major polluting facility.

New listings for minor sources (Part B of the Guidelines) include:

EquipmentDetails
Regenerative Thermal Oxidizer (RTO),  Natural Gas Fired (burner operation only)Achieved In Practice:  Prime and finish coating stations are totally enclosed and vented to the RTO.
NOx limit: 30 ppmv on a dry basis @ 3% O2
CO limit: 100 ppmv on a dry basis @ 3% O2
Regenerative Thermal Oxidizer
Natural Gas Fired (burner operation only)
Achieved In Practice:  Venting guitar spray rooms
NOx limit: 30 ppmv on a dry basis @ 3% O2
CO limit: 400 ppmv on a dry basis @ 3% O2
Recuperative Thermal Oxidizer,  Natural Gas Fired (non-process emissions)Achieved In Practice:  Venting adhesive coater ovens
NOx limit: 30 ppmv on a dry basis @ 3% O2
CO limit: 250 ppmv on a dry basis @ 3% O2
Process Heater –Non-Refinery, Thermal Fluid Heater, Natural Gas FiredAchieved In Practice:  Asphalt/roofing
NOx limit: 9 ppmv on a dry basis @ 3% O2
CO limit: 100 ppmv on a dry basis @ 3% O2
Internal Combustion Engine, Stationary, 147 – 385 BHP, Non-Emergency, Electrical GenerationAchieved In Practice:  @ 15% Oxygen
NOx limit: 0.07 lb/MW-hr(2.5 ppmvd
VOC limit: 0.10 lb/MW-hr(10 ppmvd
CO limit: 0.20 lb/MW-hr(12 ppmvd
Duct Burner –Refinery Fuel GasAchieved In Practice,  Total Reduced Sulfur limit:
40 ppm, rolling 1-hr avg. period &
30 ppm, rolling 24-hr avg. period
Aluminum Heat Treating Oven –5.47 MM Btu/hr,Achieved In Practice:
NOx limit: 25 ppmv on a dry basis @ 3% O2
Gas Turbine –Simple Cycle, Natural GasAchieved In Practice:
Lower NOx limit from 2.5 ppmv to 2.3 ppmv
CO limit: 4 ppmv
NH3 slip limit: 5 ppmv on a dry basis @ 15% O2
Fermentation, Wine Tanks Closed-Top
≤ 30,000 gallons
Achieved In Practice for VOC:
Water Scrubber or Chiller Condenser with 67% overall control efficiency averaged over length of fermentation season
Glass Screen Printing –Flat GlassAchieved In Practice for VOC:
Compliance with Rule 1145; or
Use of Rule 1145 compliant Ultraviolet/Electron Beam (UV/EB); or Water-based coatings
Spray Booth –Wood Cabinets
Encl. with automated spray nozzles
Achieved In Practice for VOC:
Compliance with Rule 1136; or
Use of Rule 1136 compliant UV/EB; or
Water-based coatings

SCAQMD has also been working with the California Air Resources Board (CARB) to update the statewide BACT Clearinghouse, which air districts are required to use when updating their BACT determinations for stationary sources. CARB has also created a BACT guideline tool which allows users to view guideline documents that contain an overview of emissions limits and associated controls that may be required for a source type. The proposed guidelines will be presented to the SCAQMD Governing Board for formal approval in February of 2021.

CARB’S CRITERIA & AIR TOXICS REGULATIONS

The California Air Resources Board (CARB) held a joint workshop to discuss proposed amendments to the AB 2588 Air Toxics “Hot Spots” Emission Inventory Criteria and Guidelines (EICG) Regulation and the “Regulation for the Reporting of Criteria Air Pollutants and Toxic Air Contaminants” (CTR). Under the EIGC program, stationary sources are required to report the types and quantities of certain toxic substances their facilities routinely release into the air. The CTR arose out of legislation (California Assembly Bills 617 and 197 by Eduardo Garcia), which created new mandates for CARB and local air districts.

The AB 2588 program was established to collect emission data on air toxics emitted in California, to identify those facilities with unacceptable localized health risks, and to ensure nearby residents were notified of significant risks. The compliance requirements and the economic impact of the proposed amendments would begin with the 2023 reporting year, based on emissions data from 2022. Costs to the private sector are estimated to be $2.1 million per year in 2022; $7.9 million per year in 2025, and $5.2 million per year in 2031 and thereafter.

Diesel engines will face additional reporting requirements. Stationary portable diesel engines greater than 50 horsepower at specified larger facilities will be impacted and local air districts may override facility exemptions for smaller engines that are deemed to pose public health risk. A new list of reportable substances will include new or modified “chemicals of concern” and a phase-in schedule has been established for reporting of newly added chemicals. According to CARB staff, the California Health and Safety Code requires the addition of 900 new chemicals. There are new source test requirements for waste management facilities (a two-step testing and review process will be allowed) and secondary aluminum processing. Requirements for facilities emitting less than 10 tons per year of criteria pollutants include the addition of types of facilities posing “potential public health concerns.” Facilities that emit 4 or more tons per year of criteria pollutants (but less than 10 tons per year) are also impacted.

Reporting will be done according to a phase-in schedule by district group (A or B) and sector phase (1, 2 or 3). District group A is comprised of Bay Area AQMD, San Diego County Air Pollution Control District, Imperial County APCD, San Joaquin Valley Unified APCD, Sacramento Metropolitan AQMD, and South Coast AQMD. The rest of the air districts are in District group B. Year 2022 will be the first to be reported and the data must be submitted during 2023.

According to CARB, the primary focus of the proposed CTR amendments is the expansion of the regulation’s applicability requirements to increase the number and types of facilities subject to annual emissions data reporting. “These amendments are necessary to ensure that accurate and comprehensive emissions inventories are collected to support multiple CARB programs and improve data transparency and public data access”—stated the staff report. Instead of only including selected communities (as specified by AB 617), the applicability based on criteria pollutant and toxics emitting facilities will be expanded statewide, potentially impacting 60,000 facilities. Currently only about 1,300 are impacted. Facilities with permitted criteria pollutant emissions greater than four (4) tons per year will be subject to the regulation. Recent changes to the proposal clarified that un-permitted sources would not be covered. But, certain permitted industry sectors are required to submit emissions data reports regardless of emissions. This type of “no threshold” applicability would apply to sources such as metal plating and hazardous waste facilities, which regulators believe to be sources of concern for toxics emissions, regardless of the level of activity at the facility. CARB has also specified a second group of sectors that must report if a throughput or use threshold is exceeded, such as gallons of fuel used. Some of the types of activities in this threshold-based category include permitted backup diesel engines, retail gas stations, auto paint and body shops, and commercial cooking and charbroiling.

Various stakeholders, including the South Coast Air Quality Management District (SCAQMD), have submitted comments on the proposal. In a comment letter SCAQMD stated: “While some elements are mandated, such as the development of a uniform statewide system of annual reporting of emissions of criteria air pollutants and toxic air contaminants, the most concerning elements proposed are not required under statute.” SCAQMD pointed to Community Emission Reduction Plans (CERPs), which can and are currently being developed “without the need for excessive requirements for statewide emissions reporting by individual facilities.” The District was also concerned with the extensive protocol development, outreach, training and auditing that would be needed, pointing out that the effort could take many years. SCAQMD suggested changes to include unpermitted equipment, thereby including fugitive emissions—a change which industry representatives oppose.

They also want flexibility for air districts to:

  • Determine best available data and methods for emission sources;
  • Delay in the individual reporting phases by at least one year for Phases I and II, and 2 years for Phase III;
  • Restructure phases based on sector or industry as opposed to by the type of process;
  • Streamline emission calculations for some processes and align emission report content with that required by air districts.

CARB’s report recognizes that the proposed amendments would significantly expand the number of chemicals to be reported and is allowing the requirements to be phased “to ease the reporting burden.” Full reporting would begin in 2027 and 2028. Simplified abbreviated reporting provisions are available for smaller sources. Staff estimates that a typical small facility will need to report a single activity number such as hour of operation. A typical industrial facility would see the number of chemicals it would need to report increase by about 20 percent. Business costs are estimated to be approximately $9.6 million per year. Local government and air district statewide costs are estimated to be $5.6 million per year. Industry representatives challenged these estimates, arguing that costs would be much higher.