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Public Workshop to Discuss Public Workshop to Discuss Proposed Amendments to the Proposed Amendments to the AB 2588 Guidelines RegulationAB 2588 Guidelines Regulation

July 27, 2006July 27, 2006

California Environmental Protection Agency

Air Resources Board

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Presentation OverviewPresentation Overview

““Hot Spots” ProgramHot Spots” Program Proposed AmendmentsProposed Amendments Implementation of Proposed AmendmentsImplementation of Proposed Amendments Response to Comments from Previous Response to Comments from Previous

WorkshopsWorkshops Preliminary Cost EstimatesPreliminary Cost Estimates Next StepsNext Steps

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““Hot Spots” ProgramHot Spots” Program

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State Law enacted in 1987State Law enacted in 1987

Evaluates health risks from facilities that Evaluates health risks from facilities that emit air toxics, including diesel PMemit air toxics, including diesel PM

Public notified of significant health risksPublic notified of significant health risks

Requires significant risks to be reducedRequires significant risks to be reduced

AB 2588 “Hot Spots” ProgramAB 2588 “Hot Spots” Program

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Key ProvisionsKey Provisions Emission reporting, Health risk assessment, Emission reporting, Health risk assessment,

Public notification, and Risk reductionPublic notification, and Risk reduction

ImplementationImplementation ARB sets reporting requirements by amending ARB sets reporting requirements by amending

Guidelines regulationGuidelines regulation

OEHHA develops risk assessment guidelinesOEHHA develops risk assessment guidelines

Local districts implement program, and set Local districts implement program, and set notification and risk reduction thresholdsnotification and risk reduction thresholds

Key Provisions and Key Provisions and ImplementationImplementation

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Basis for first statewide air toxics inventoryBasis for first statewide air toxics inventory

Voluntary reduction of millions of pounds of Voluntary reduction of millions of pounds of toxics from industrial sourcestoxics from industrial sources

Provides data for identification of toxic air Provides data for identification of toxic air contaminants and other control measurescontaminants and other control measures

Provides information to the public about air Provides information to the public about air pollution from stationary sourcespollution from stationary sources

AB 2588 “Hot Spots” AB 2588 “Hot Spots” AchievementsAchievements

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Proposed AmendmentsProposed Amendments

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Proposal Does Not Change Proposal Does Not Change “Hot Spots” Process“Hot Spots” Process

Proposed amendments do not alter the core Proposed amendments do not alter the core of the “Hot Spots” Programof the “Hot Spots” Program

Proposal updates scientific information on Proposal updates scientific information on toxic substances and risk assessment toxic substances and risk assessment methodologymethodology

Proposal affects risk calculations and Proposal affects risk calculations and applicability, not processapplicability, not process

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Align reporting requirements with ATCMAlign reporting requirements with ATCM

Update diesel engine requirements to reflect Update diesel engine requirements to reflect diesel particulate cancer potencydiesel particulate cancer potency

Incorporate most recent OEHHA risk assessment Incorporate most recent OEHHA risk assessment guidelines, including new health valuesguidelines, including new health values

Update substance listUpdate substance list

Only small percentage of affected facilities will Only small percentage of affected facilities will need to go beyond ATCM requirementsneed to go beyond ATCM requirements

What Changes Are Being Proposed What Changes Are Being Proposed for the Guidelines Regulation?for the Guidelines Regulation?

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Modify reporting threshold for diesel enginesModify reporting threshold for diesel engines Define “diesel engine-only facility”Define “diesel engine-only facility” Align inventory reporting to avoid duplicationAlign inventory reporting to avoid duplication Allow flexibility in selecting reporting yearAllow flexibility in selecting reporting year Provide screening risk assessment toolsProvide screening risk assessment tools Address public notification process Address public notification process Limit State feesLimit State fees

Recap of Diesel ProposalRecap of Diesel Proposal

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Revisions Since Last WorkshopRevisions Since Last Workshop

New diesel engine ‘Section XI’ reorganized New diesel engine ‘Section XI’ reorganized and simplifiedand simplified

Modified diesel engine reporting Modified diesel engine reporting requirements to align with ATCMrequirements to align with ATCM

Add clarifying language to allow districts to Add clarifying language to allow districts to request additional information if necessary to request additional information if necessary to complete assessmentcomplete assessment

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OEHHA Health Risk OEHHA Health Risk Assessment GuidelinesAssessment Guidelines

Adopted by OEHHA in 2003Adopted by OEHHA in 2003 Replaces 1993 CAPCOA HRA Guidelines in Replaces 1993 CAPCOA HRA Guidelines in

“Hot Spots” regulation“Hot Spots” regulation Includes OEHHA-approved cancer potency for Includes OEHHA-approved cancer potency for

diesel PM, and health values for other diesel PM, and health values for other substancessubstances

Already in use by districts as part of all risk Already in use by districts as part of all risk evaluationsevaluations

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Updating the List of SubstancesUpdating the List of Substances(Appendix A)(Appendix A)

Twelve new substances now covered by Twelve new substances now covered by “Hot Spots” reporting“Hot Spots” reporting

Individual substances added under existing Individual substances added under existing classes of listed substancesclasses of listed substances Individual congeners of Dioxin-like PCBs, and PAHsIndividual congeners of Dioxin-like PCBs, and PAHs

Expand existing class of Brominated diphenyl Expand existing class of Brominated diphenyl ethers and Trimethylbenzenesethers and Trimethylbenzenes

‘‘Degree of accuracy’ reflects new health valuesDegree of accuracy’ reflects new health values Corrections to CAS number or substance nameCorrections to CAS number or substance name

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Substances With Potential to Substances With Potential to Affect Facilities in CaliforniaAffect Facilities in California

Naphthalene has a new cancer potencyNaphthalene has a new cancer potency Combustion byproduct - emission factors are Combustion byproduct - emission factors are

availableavailable

Crystalline silica has a new chronic health Crystalline silica has a new chronic health valuevalue Emitted from aggregate facilities and other dust Emitted from aggregate facilities and other dust

sourcessources Test method under developmentTest method under development

Acrolein has a revised acute health valueAcrolein has a revised acute health value Combustion byproduct emitted at low levelsCombustion byproduct emitted at low levels No proven source test method availableNo proven source test method available

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Implementation of Proposed Implementation of Proposed AmendmentsAmendments

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Aligning “Hot Spots” with Aligning “Hot Spots” with Stationary Diesel Engine ATCMStationary Diesel Engine ATCM

2005 ATCM reporting requirements satisfy “Hot 2005 ATCM reporting requirements satisfy “Hot Spots” emission reporting requirementsSpots” emission reporting requirements

Updated emission information (2007) reflecting new Updated emission information (2007) reflecting new controls may be usedcontrols may be used

Compliance with ATCM will meet “Hot Spots” Compliance with ATCM will meet “Hot Spots” requirements for most facilitiesrequirements for most facilities

Facilities with multiple diesel engines near residences Facilities with multiple diesel engines near residences may trigger public notification and additional risk may trigger public notification and additional risk reductionreduction

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Facilities Potentially Subject To Facilities Potentially Subject To Additional “Hot Spots” RequirementsAdditional “Hot Spots” Requirements

A small percentage of affected facilities may be A small percentage of affected facilities may be subject to additional Hot Spots requirements subject to additional Hot Spots requirements which are over and above ATCM requirementswhich are over and above ATCM requirements

Facilities with multiple enginesFacilities with multiple engines Multiple prime engines Multiple prime engines Prime and backup engines Prime and backup engines Multiple backup enginesMultiple backup engines

Facilities with other sources of toxic emissions Facilities with other sources of toxic emissions which may or may not have previously been which may or may not have previously been subject to “Hot Spots”subject to “Hot Spots”

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Facilities With Multiple EnginesFacilities With Multiple Engines(no other toxics)(no other toxics)

““Hot Spots” review necessary to determine Hot Spots” review necessary to determine residual risk after ATCM implementationresidual risk after ATCM implementation

ATCM sets operating/emission limits on a ATCM sets operating/emission limits on a per engine basisper engine basis

““Hot Spots” applicability based on all Hot Spots” applicability based on all engines operating at a facilityengines operating at a facility

Some facilities have dozens of backup Some facilities have dozens of backup engines, and the risk must be evaluatedengines, and the risk must be evaluated

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Facilities With Other Sources Facilities With Other Sources of Toxic Emissionsof Toxic Emissions

Facilities may exceed district’s risk thresholds Facilities may exceed district’s risk thresholds when diesel risk is added to risk assessmentwhen diesel risk is added to risk assessment

Facilities previously subject to “Hot Spots” will Facilities previously subject to “Hot Spots” will need to reflect new information in quadrennial need to reflect new information in quadrennial update update

Districts will notify new facilities that become Districts will notify new facilities that become subject to “Hot Spots”subject to “Hot Spots”

Screening tables and HARP available to Screening tables and HARP available to address diesel riskaddress diesel risk

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Options for Facilities with Options for Facilities with Multiple Diesel EnginesMultiple Diesel Engines

Reporting threshold (20 engine hrs/yr) for diesel Reporting threshold (20 engine hrs/yr) for diesel engines is only the first step for screeningengines is only the first step for screening

Screening health risk assessments tables Screening health risk assessments tables available for follow up screening process available for follow up screening process

Risk assessment software (HARP) available on Risk assessment software (HARP) available on ARB’s web page to do more refined analysisARB’s web page to do more refined analysis

Facilities with significant residual risk may need Facilities with significant residual risk may need to reduce emissions further than what is to reduce emissions further than what is required by the ATCMrequired by the ATCM

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Public NotificationPublic Notification

District determines risk threshold for public District determines risk threshold for public notification (usually 10/million)notification (usually 10/million)

District determines requirements for District determines requirements for conducting public notificationconducting public notification Notification via internet or local newspapersNotification via internet or local newspapers Notification letters to nearby residentsNotification letters to nearby residents Public consultation meetingPublic consultation meeting

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““Hot Spots” Program and Proposed Hot Spots” Program and Proposed ATCM for ATCM for AgriculturalAgricultural Engines Engines

Agricultural engine ATCM under Agricultural engine ATCM under developmentdevelopment

Align proposed ATCM and “Hot Spots” Align proposed ATCM and “Hot Spots” program requirementsprogram requirements Streamline compliance process Streamline compliance process Avoid duplicative requirementsAvoid duplicative requirements

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Response to Comments on Response to Comments on Proposed Amendments from Proposed Amendments from

Previous WorkshopsPrevious Workshops

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ARB Staff Responses to ARB Staff Responses to Questions from WorkshopsQuestions from Workshops

Are diesel engine emergency operations Are diesel engine emergency operations subject to “Hot Spots” reporting?subject to “Hot Spots” reporting? No, under the current proposal emergency No, under the current proposal emergency

operations are not subject to AB 2588 reportingoperations are not subject to AB 2588 reporting Definition of “Emergency Operations” will be the same as Definition of “Emergency Operations” will be the same as

definition in ATCMdefinition in ATCM Includes the loss of electrical power beyond the Includes the loss of electrical power beyond the

reasonable control of the facilityreasonable control of the facility Includes the pumping of water or sewage to prevent a Includes the pumping of water or sewage to prevent a

flood or sewage overflowflood or sewage overflow

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ARB Staff Responses to ARB Staff Responses to Questions from Workshops (cont.)Questions from Workshops (cont.)

Are portable engines subject to Are portable engines subject to “Hot Spots”?“Hot Spots”? Yes, but only if operations are routine and Yes, but only if operations are routine and

predictablepredictable May impact facilities that have multiple diesel May impact facilities that have multiple diesel

engines or multiple sources of toxicsengines or multiple sources of toxics Facility operator would be responsible for Facility operator would be responsible for

reporting activity data, including activities of reporting activity data, including activities of third-party contractorsthird-party contractors

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ARB Staff Responses to ARB Staff Responses to Questions from Workshops (cont.)Questions from Workshops (cont.)

Are engines less than 50 hp subject to “Hot Are engines less than 50 hp subject to “Hot Spots”?Spots”? Under the current proposal, districts have flexibility to Under the current proposal, districts have flexibility to

request information on less than 50 hp engines if a request information on less than 50 hp engines if a district determines it is necessary to assess facility district determines it is necessary to assess facility impactsimpacts

Operation must be routine and predictableOperation must be routine and predictable Mainly an issue for facilities that have multiple diesel Mainly an issue for facilities that have multiple diesel

engines or multiple sources of toxicsengines or multiple sources of toxics

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ARB Staff Responses to ARB Staff Responses to Questions from Workshops (cont.)Questions from Workshops (cont.)

If an engine is exempt from the stationary If an engine is exempt from the stationary engine ATCM, will it be exempt from engine ATCM, will it be exempt from “Hot Spots”?“Hot Spots”? Not automaticallyNot automatically Source would be subject to standard review Source would be subject to standard review

process process Most ATCM-exempted activities are anticipated Most ATCM-exempted activities are anticipated

to be low risk and screen out early in the processto be low risk and screen out early in the process

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ARB Staff Responses to ARB Staff Responses to Questions from Workshops (cont.)Questions from Workshops (cont.)

Are vehicular sources subject to AB 2588?Are vehicular sources subject to AB 2588? No, emissions from vehicular sources (cars, No, emissions from vehicular sources (cars,

trucks, etc.) are not subject to AB 2588trucks, etc.) are not subject to AB 2588 Fugitive dust from vehicle activity may need Fugitive dust from vehicle activity may need

to be reported if facility is already in AB 2588to be reported if facility is already in AB 2588

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Preliminary Cost Preliminary Cost EstimatesEstimates

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Proposed Amendments Do Not Proposed Amendments Do Not Change “Hot Spots” Program CostsChange “Hot Spots” Program Costs

Amendments call for review of new substances Amendments call for review of new substances based on new scientific information, but do not based on new scientific information, but do not increase any existing “Hot Spots” feesincrease any existing “Hot Spots” fees

Many facilities with diesel engines already in “Hot Many facilities with diesel engines already in “Hot Spots” may not see any change in fees or costsSpots” may not see any change in fees or costs

New facilities with only diesel engines will pay a New facilities with only diesel engines will pay a nominal State fees (~$35)nominal State fees (~$35)

Some large industrial facilities may have costs Some large industrial facilities may have costs related to substances with new health valuesrelated to substances with new health values

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Approach for Estimating Approach for Estimating Facility CostsFacility Costs

Facility compliance costs triggered by new Facility compliance costs triggered by new amendments include incremental costs over and amendments include incremental costs over and above ATCM and past “Hot Spots” requirementsabove ATCM and past “Hot Spots” requirements Diesel PM inventory (covered by ATCM in most cases)Diesel PM inventory (covered by ATCM in most cases) Health risk assessment ($3,000 - $20,000)Health risk assessment ($3,000 - $20,000) Inventory update ($200 - $2,000) Inventory update ($200 - $2,000) Public notification ($0 - $30,000)Public notification ($0 - $30,000) Residual Risk reduction ($500 - $40,000 per engine)Residual Risk reduction ($500 - $40,000 per engine) State fees ($35-$6,363) and District fees ($35-$14,000)State fees ($35-$6,363) and District fees ($35-$14,000)

Additional costs also associated with reporting and Additional costs also associated with reporting and assessment of new substancesassessment of new substances

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Costs for Facility with Costs for Facility with Multiple Backup EnginesMultiple Backup Engines

Assumptions:Assumptions: Facility never subject to AB 2588Facility never subject to AB 2588 2 backup diesel engines operating 40 hrs/yr 2 backup diesel engines operating 40 hrs/yr ATCM inventory submittal satisfies AB 2588 ATCM inventory submittal satisfies AB 2588

reporting requirementsreporting requirements Screening HRA indicates risk is <10/millionScreening HRA indicates risk is <10/million

Costs:Costs: State fee ($35/yr) + District fee ($150/yr)State fee ($35/yr) + District fee ($150/yr) Total costs less than $200/yearTotal costs less than $200/year

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Costs for Facility with Residual Costs for Facility with Residual Risk But No Engine ReplacementRisk But No Engine Replacement Assumptions:Assumptions:

Facility already subject to “Hot Spots” because of other Facility already subject to “Hot Spots” because of other emissionsemissions

Adding diesel risk to existing facility risk assessment Adding diesel risk to existing facility risk assessment increases facility risk from 3 to 13/millionincreases facility risk from 3 to 13/million

Screening HRA shows moving dirtiest engine away from Screening HRA shows moving dirtiest engine away from nearby receptors, or hour reductions for all 3 backup engines, nearby receptors, or hour reductions for all 3 backup engines, could get risk below 10/millioncould get risk below 10/million

Facility has option to relocate engine or reduce engine hours Facility has option to relocate engine or reduce engine hours to get screening HRA below 10/million to get screening HRA below 10/million (otherwise a full HRA is required) (otherwise a full HRA is required)

(costs on next slide)(costs on next slide)

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Costs for Facility with Residual Costs for Facility with Residual Risk But No Engine ReplacementRisk But No Engine Replacement Total costs estimated at Total costs estimated at $600/yr$600/yr

Screening HRA done by district at no costScreening HRA done by district at no cost No cost for reducing engine hoursNo cost for reducing engine hours Relocating an engine may be too expensiveRelocating an engine may be too expensive State fee ($100/yr) + District fee ($500/yr)State fee ($100/yr) + District fee ($500/yr)

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Costs for Large Facility with Residual Costs for Large Facility with Residual Risk and Engine ReplacementRisk and Engine Replacement

Assumptions:Assumptions: Facility already subject to Hot Spots programFacility already subject to Hot Spots program Screening HRA from 10 backup engines added to Screening HRA from 10 backup engines added to

existing facility riskexisting facility risk District determines potential risk is significantDistrict determines potential risk is significant Risk is 20/million for facility (diesel is 15/million, Risk is 20/million for facility (diesel is 15/million,

primarily from the oldest engine, other engines are primarily from the oldest engine, other engines are low risk) low risk)

District requires public notification District requires public notification Retrofit or replace dirtiest engine to reduce risk below Retrofit or replace dirtiest engine to reduce risk below

10/million (usually within 5 years)10/million (usually within 5 years) (costs on next slide)(costs on next slide)

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Costs for Large Facility with Residual Costs for Large Facility with Residual Risk and Engine ReplacementRisk and Engine Replacement

Total costs could exceed Total costs could exceed $54,000$54,000 Inventory update - $3,000Inventory update - $3,000 Screening HRA - district does this at no costScreening HRA - district does this at no cost Health risk assessment ($12,000)Health risk assessment ($12,000) Public notification ($5,000)Public notification ($5,000) Replacement engine ($25,000 - 200hp)Replacement engine ($25,000 - 200hp) State and District fees drop when risk is State and District fees drop when risk is

reduced at facility reduced at facility State fee drops from $3,000 to $100/yrState fee drops from $3,000 to $100/yrDistrict fee drops from $6,000 to $400/yrDistrict fee drops from $6,000 to $400/yr

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Next StepsNext Steps

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Tentative public workshop in late AugustTentative public workshop in late August

Formal public comment period begins on Formal public comment period begins on September 1, 2006 September 1, 2006

Staff Report and Notice ReleasedStaff Report and Notice Released

ARB consideration on October 19-20, 2006ARB consideration on October 19-20, 2006

Next StepsNext Steps

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Availability of DocumentsAvailability of Documents

Draft ‘underline-strikeout’ version of Draft ‘underline-strikeout’ version of regulation (Sections I through XI) regulation (Sections I through XI) available on the web:available on the web: http://www.arb.ca.gov/ab2588/2588guid.htmhttp://www.arb.ca.gov/ab2588/2588guid.htm Section XI addresses diesel enginesSection XI addresses diesel engines Appendices A-G also availableAppendices A-G also available

List of Substances (Appendix A)List of Substances (Appendix A)Diesel Engine Reporting Threshold (Appendix E)Diesel Engine Reporting Threshold (Appendix E)

ag/REV7-27-06_v7.pptag/REV7-27-06_v7.ppt 4040

For information contact For information contact Dale Shimp Dale Shimp

at (916) 324-7156 or at (916) 324-7156 or www.arb.ca.gov/ab2588/ab2588.htmwww.arb.ca.gov/ab2588/ab2588.htm