Expanding Markets

First in a Webinar Series

December 14, 2017

California’s Market Opportunities

Introductions

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Presenters

Clare Schulzki

Executive Director

ICAC

Charles Ingebretson

Partner

AJW

Chris Hessler

Partner

AJW

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1. Why California?

2. Interagency Refinery Task Force- Refinery Air Monitoring Assessment Report (Draft)

3. Community Air Protection Program AB 617

4. Opportunities for ICAC

✓ Statewide Monitoring Plan & Community Air Monitoring

✓ Statewide Strategy & Community Emission Reduction Programs

✓ Accelerated Retrofit of Pollution Control Equipment at Existing Facilities

In This Webinar

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Table of Contents: I. California Overview………………………………………………….Slide 5

II. Interagency Refinery Task Force……………………………….Slide 10

III. AB 617 – Community Air Protection Program…………..Slide 15

IV. ICAC Member Opportunities …………………………………..Slide 22

I. California Overview

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Why California?

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I. California Overview

Significant Market Opportunity for Additional Industrial Emission Controls

Largest State Economy• $2.448 Trillion• 13% of US GDP

Largest Manufacturer in US• $256 Billion (California)• $238 Billion (Texas)• $ 98 Billion (Ohio)

AB 617 may become the model for driving industrial emission reductions in non-attainment areas around the nation

• Long history of 1st in the nation air policies/regulation—Other jurisdictions follow

• >100M Americans still live in non-attainment areas (nearly 35 million live in CA)

• Ports and industrial centers will be the focus for future CAA attainment efforts nationwide

6th Largest Economy in World1. United States2. China3. Japan4. Germany5. United Kingdom6. California7. France8. India

A POLICY LEADER AN ECONOMIC LEADER

Why California?

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I. California Overview

An Economic Leader

In 2010, California ranked 1st in the U.S. in number of Manufacturing

plants, with 37,937 establishments.

California Clean Air Initiatives Have a Strong History of Being Adopted Elsewhere

I. California Overview

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Low Emission Vehicle (LEV) standards

Low Carbon Fuel Standard

- Adopted in California in 2009, and was adopted in Oregon (2009), British Columbia (2010), and Washington (2012)

NOx Emissions

- RECLAIM program established in 1993 to reduce NOx emissions from 400 sources in SQAQMD by 40%, by 1999 NOx trading established in 12 Northeast/Mid-Atlantic states and Texas

- California adopts clean fuel and Low Emission Vehicle (LEV) standards in 1990, and – in 1994 – by the US EPA

Low Emission Vehicle (LEV) standards

Smog Check Program

- California implements vehicle smog check program in 1988 – included in the 1990 Clean Air Act Amendments as “inspection and maintenance” program, required in a dozen states in 1994

California has a Unique Air Regulatory Structure

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I. California Overview

EPA

• Sets nationwide air quality and emissions standards

• Oversees state efforts and enforcement

• Must adopt either EPA or CA vehicle emission standards

State Environmental Agency

• Identifies emission sources

• Implements emission control actions needed to satisfy federal requirements

California Air Resources Board

• Independent, appointed Board

• Focused on unique air quality

challenges

• Sets stricter emissions standards for

range of sources

• Operates nation’s most extensive air

monitoring network

• Studies the costs and benefits of pollution controls

Air Pollution Control Districts

• 35 Local Air Pollution Control Districts

• Directly regulates emissions from

businesses and stationary facilities

Typical State California California Air Districts

II. Interagency Refinery Task Force

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History of the CARB/CAPCOA Interagency Refinery Task Force

August 2012

There was fire at Chevron refinery in Richmond, CA

August 2013

California created the Interagency Refinery Task Force (IRTF) charged with evaluating opportunities for reducing risks

May 2015

IRTF issued the first Refinery Emergency Air Monitoring Assessment Report to inventory air monitoring capabilities

September 2017

IRTF issued the second Refinery Emergency Air Monitoring Assessment Report (Draft) that expands on findings of earlier report and now includes routine monitoring

o New monitoring requirements for enhanced fence line and community monitoring in the vicinity of major stationary sources such as refineries

o New emission requirements

o Focus on reducing emission risks for surrounding community

II. Interagency Refinery Task Force

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IRTF’s Emergency Air Monitoring Assessment Report (Draft) Recommendations include:

Air Monitoring Technology• Expand monitoring locations:

• In the refinery• at fence line • in nearby communities

• Monitoring for compounds, including: Hydrogen sulfide, Sulfur dioxide, PM, VOCs, NOx

II. Interagency Refinery Task Force

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Modeling

• Improve techniques to better predict impacts of pollution

Communication and Coordination

• Provide real-time information

• Improve state and local coordination through interagency monitoring working group

Also includes

Air Monitoring Recommendations

Refineries and Response Agencies Should:

• Expand the use of personal air monitors and handheld devices with real-time telemetry

• Expand site-appropriate process unit monitoring, ground level monitoring and fence line monitoring – all transmitting real-time data for notification and evaluation

Districts Should:

• Establish enhanced, site appropriate community monitoring systems, including fixed, mobile and community-based sensors

• Demonstrate and require appropriate deployment of new technologies and systems, such as optical remote sensing (ORS), sensor networks and other real-time instrument capabilities

II. Interagency Refinery Task Force

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Key Takeaways from Air Monitoring Report

• Refineries, air districts, local response agencies and the State of California will need to purchase and deploy additional monitoring equipment

• All will need to maintain and operate expanded monitoring networks

• Additional emission control requirements TBD

• The refinery monitoring report will be a resource as State and air districts begin to carry out AB 617

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II. Interagency Refinery Task Force

III. AB 617 – Community Air Protection Program

Nonvehicular air pollution: criteria air pollutants and toxic air contaminants

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The California Politics of AB 617

• Signed into law July, 2017

• Part of a broader deal to extend the cap-and-trade program

• Goal to improve air quality in most polluted areas in California

Political Backstory

• The environmental community has long been divided on the issue of whether a GHG cap-and-trade program can lead to localized increases in conventional pollutants in nonattainment areas

• Environmental Justice community (and Latino Caucus) would not have supported re-adoption of cap-and-trade program without AB 617

• Gov. Jerry Brown was committed to securing cap-and-trade as part of his legacy

III. AB 617 – Community Air Protection Program

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III. AB 617 –Community Air Protection Program

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October 2018 Identify priority

(disadvantaged) communities

for monitoring programs

July 2019Deploy community

monitoring networks

Develop a statewide

monitoring program (real-

time, fence line systems)

January 2020State can annually identify

additional communities

requiring monitoring

networks

October 2018Develop a statewide strategy

Identification of

communities for emission

reduction program

October 2019Develop District Community

Emission Reduction Programs

Best Available Retrofit

Control Technology (BARCT)

required for all industrial

sources in non-attainment

areas

Statewide reporting system

for facilities

Statewide pollution mapping

tool

Public availability of

emissions data

$250,000,000Incentive funding• Mobile focused

$5,000,000Community Assistance Grants• Training• Support• Technical Experts

Monitoring Action Plans Emissions Funding

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Opportunities for ICAC Member Engagement

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Opportunities for ICAC Member Engagement

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Opportunities for ICAC Member Engagement

III. AB 617 – Community Air Protection Program

Establish Technology Clearinghouse- Monitoring technology

- Control technology

Establish Emissions Monitoring & Data Sharing Requirements- Sources (to the fence line)

- Air Districts

- Communities

Establish Emission Control Requirements- Defining BARCT

- Establish a method for identifying

source contributions

Implementing Emissions Monitoring- Beyond the fence line

- Data collection

- Identifying sources

Implementing Emission Controls- Prioritizing sources

- BARCT Implementation

Oversight & Enforcement - Facility reporting requirements

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Establish Independent Monitoring Network- Grant funding available for technical

assistance & equipment purchasing

Prioritized Role as Stakeholder- Community input likely to influence

all aspects of implementation

CARB Role Air District Role Community Organization Role

IV. ICAC Member Opportunities

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Diverse Emissions Sources

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Refineries

Cargo handling and Transportation

Oil and Gas Production

Natural Gas TransmissionRenewable natural gas production (Biodigesters)

Minerals ProductionGlassClayLimeCement

Fabricated Metals

California Industries

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• Aerospace, Biotech/Medical• Boeing, Northrup Grumman, Lockheed

Martin

• Food Manufacturing, Transportation and Logistics Manufacturing, Construction Materials

• Siemens, Blue Diamond Growers, Aerojet, Tietchert, Intel Materials

• Food manufacturing Materials • Foster Farms, Kellogg, Kraft Food, General

Mills

• Food Manufacturing, Timber products

• Sierra Pacific Industries

• Food Manufacturing, Wine Production

• Annheuser-Busch, Clorox, Jelly Belly Candy Company, Dell Prodcuts, BioMarin Pharmaceuticals, PetalunaPoultry Processors

• Heavy Industrial Manufacturing, Transportation and Logistics manufacturing, Petroleum Refining, Household Goods manufacturing.

• Chevron, Clorox, Bio-Rad Laboratories, Tesla, Anabelle Candy, Columbus Salame, Shasta, PepsiCo, Maxwell House, Cargil Salt, Logitech

• Computer and Electronics Manufacturing, Biotech/Medical Devices/PharmaceuticalsApple, Google, Microsoft, Intel, Advanced Micro Devices, Cisco, Marveil Semiconductor, National Semionductor

• Biotech/Medical Devices/Pharmaceuticals• Life Technologies Corp. Neurocrine

Biosciences

California Manufacturing

Market Expansion

Emissions Monitoring• Work with CARB and local air districts to

review existing air monitoring technologies

• Recommend additional monitoring technologies

• Participate in the air sensors international conference

Emissions Control• Assist CARB and local agencies to develop

strategies and measures for reducing emissions

• Help CARB identify Best Available Control Technologies as well as Best Available Retrofit Control Technologies

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IV. ICAC Member Opportunities

Additional Information

AB 617

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB617

California Air Resources Board

https://ww2.arb.ca.gov/about

Refinery Emergency Air Monitoring Assessment Report

https://www.arb.ca.gov/fuels/carefinery/crseam/crseam.htm

Air Sensors International Conference, September 2018

https://sehall4.wixsite.com/asic/home-landing

EPA Smart Cities Air Challenge

https://developer.epa.gov/smart-city-air-challenge/

EPA Air Sensors Toolbox

https://www.epa.gov/air-sensor-toolbox

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Questions? Comments?

Clare Schulzki CSchulzki@icac.com

Chris HesslerCHessler@ajw-inc.com

Charles IngebretsonCIngebretson@ajw-inc.com

Thank You!