State of California AIR RESOURCES BOARD PUBLIC HEARING TO CONSIDER AMENDMENTS TO THE EMISSION INVENTORY CRITERIA AND GUIDELINES REPORT FOR THE AIR TOXICS “HOT SPOTS” PROGRAM STAFF REPORT: INITIAL STATEMENT OF REASONS DATE OF RELEASE: September 29, 2020 SCHEDULED FOR CONSIDERATION: November 19, 2020 Location: Please see the Public Agenda which will be posted ten days before the November 19, 2020, Board Meeting for any appropriate direction regarding a possible remote-only Board Meeting. If the meeting is to be held in person, it will be held at the California Air Resources Board, Byron Sher Auditorium, 1001 I Street, Sacramento, California 95814. This report has been reviewed by the staff of the California Air Resources Board and approved for publication. Approval does not signify that the contents necessarily reflect the views and policies of the Air Resources Board, nor does mention of trade names or commercial products constitute endorsement or recommendation for use. This Page Intentionally Left Blank TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................... 1 I. INTRODUCTION AND BACKGROUND ................................................................. 5 II. THE PROBLEM THAT THE PROPOSAL IS INTENDED TO ADDRESS .................... 6 III. BENEFITS ANTICIPATED FROM THE REGULATORY ACTION, INCLUDING THE BENEFITS OR GOALS PROVIDED IN THE AUTHORIZING STATUTE .................... 8 IV. AIR QUALITY ........................................................................................................... 9 V. ENVIRONMENTAL ANALYSIS .............................................................................. 10 A. INTRODUCTION ................................................................................................ 10 B. ANALYSIS ........................................................................................................ 10 VI. ENVIRONMENTAL JUSTICE ................................................................................. 11 VII. ECONOMIC IMPACTS ASSESSMENT .................................................................. 12 LEGAL REQUIREMENTS ............................................................................................. 13 C. SUMMARY OF TOTAL COSTS DUE TO AMENDMENTS ............................................. 14 D. COSTS CONSIDERED AND APPROACH TO ANALYSIS .............................................. 15 Costs Considered.................................................................................................. 15 Approach to Analysis ............................................................................................ 16 E. ECONOMIC IMPACTS TO THE PRIVATE SECTOR, INCLUDING SMALL BUSINESSES ........ 17 Small Businesses ................................................................................................... 18 F. ECONOMIC IMPACTS TO STATE AND LOCAL GOVERNMENT, INCLUDING AIR DISTRICTS ...................................................................................................................... 19 Local Government ................................................................................................. 19 State Government ................................................................................................ 20 G. ALIGNMENT WITH CRITERIA AND TOXICS REPORTING REGULATION ......................... 21 H. REASONABLE ALTERNATIVES TO THE REGULATION AND THE AGENCY’S REASON FOR REJECTING THOSE ALTERNATIVES ....................................................................... 22 VIII. EVALUATION OF REGULATORY ALTERNATIVES ............................................... 23 A. TAKE NO ACTION ALTERNATIVE ......................................................................... 23 B. REQUIRE AN ALL-IN APPROACH FOR REPORTING OF NEW CHEMICAL SUBSTANCES .. 23 C. REQUIRE QUANTIFICATION OF ALL OF THE NEWLY ADDED CHEMICAL SUBSTANCES . 24 D. SMALL BUSINESS ALTERNATIVE ........................................................................... 25 E. HEALTH AND SAFETY CODE SECTION 57005 MAJOR REGULATION ALTERNATIVES ... 26 IX. JUSTIFICATION FOR ADOPTION OF REGULATIONS DIFFERENT FROM FEDERAL REGULATIONS CONTAINED IN THE CODE OF FEDERAL REGULATIONS ..................................................................................................... 26 X. PUBLIC PROCESS FOR DEVELOPMENT OF THE PROPOSED ACTION (PRE- REGULATORY INFORMATION) ........................................................................... 28 XI. THE SPECIFIC PURPOSE OF EACH ADOPTION AND RATIONALE FOR CARB’S DETERMINATION THAT IT IS REASONABLY NECESSARY ................................. 31 TITLE 17, CALIFORNIA CODE OF REGULATIONS .............................................. 31 EMISSION INVENTORY CRITERIA AND GUIDELINES REPORT .......................... 31 Section I. Purpose and How to Use This Report ................................................ 31 Section II. Applicability: Who Must Comply and When? .................................. 34 Section III. Removal of Facilities That No Longer Meet Applicability Criteria . 43 Section IV. Update Categories and Exemptions From Update Reporting ...... 45 Section V. Update Reporting Requirements ...................................................... 48 Section VIII. Other Requirements ....................................................................... 49 Section IX. Source Testing and Emission Factors .............................................. 52 Section X. Definitions .......................................................................................... 54 Section XI. Diesel Engine Reporting Requirements .......................................... 56 APPENDIX A. LIST OF SUBSTANCES .......................................................................... 58 APPENDIX B. REPORTING FORMATS AND INSTRUCTIONS ............................................ 83 APPENDIX C. FACILITY GUIDELINE INDEX (FACILITY "LOOK-UP" TABLE) ...................... 85 APPENDIX D. SOURCE TESTING: SUMMARY OF REQUIREMENTS FOR MEASUREMENT AND ALTERNATIVES ............................................................................................... 101 APPENDIX E. REQUIREMENTS FOR CLASSES OF FACILITIES EMITTING LESS THAN 10 TONS PER YEAR OF CRITERIA POLLUTANTS ................................................................ 106 APPENDIX F. CRITERIA AND PROTOCOL FOR INPUTS FOR RISK ASSESSMENT USING SCREENING AIR DISPERSION MODELING .......................................................... 136 APPENDIX G. LIST OF DOCUMENTS INCORPORATED BY REFERENCE .......................... 143 XII. REFERENCES ...................................................................................................... 144 XIII. APPENDICES – PROVIDED AS SEPARATE DOCUMENTS ................................. 158 A. APPENDIX A – PROPOSED REGULATION ORDER ................................................. 158 B. APPENDIX B – PROPOSED AMENDMENTS TO THE EMISSION INVENTORY CRITERIA AND GUIDELINES REPORT (EICG REPORT) AND ITS APPENDICES .................................. 158 Note: Most mentions of an appendix in this document refer to one of the several appendices (A through G) that are part of the EICG Report. References to appendices that are part of the Staff Report are identified as “Appendix to the ISOR” EXECUTIVE SUMMARY Staff of the California Air Resources Board (CARB) is proposing to amend the “Emission Inventory Criteria and Guidelines Report for the Air Toxics “Hot Spots” Program” (the Guidelines or EICG). Under this program, stationary sources are required to report the types and quantities of certain toxic substances their facilities routinely release into the air. The program aims to protect public health by collecting emission data, identifying facilities having the potential for localized impacts, ascertaining the health risks, and requiring that owners of significant-risk facilities reduce their risks below the level of significance. The EICG, which is incorporated by reference into amendments to Section 93300.5, Title 17, California Code of Regulations, provides direction and criteria to facilities on how to compile and submit air toxics emission data1. The primary purpose of the proposed EICG amendments is to provide CARB and air districts with a better understanding of stationary source emissions, enhance the public access to information on toxic pollutant emissions, and further reduce their impacts on public health by ensuring that many new and emerging chemicals of concern are reported. The proposed amendments would also expand the applicability requirements to bring in new facilities into the inventory program. As California continues to transition toward zero-emission vehicles, the relative contribution of emissions from stationary sources will continue to increase, and more a comprehensive understanding of stationary source emissions from all pollutant types, particularly air toxics, will be needed to identify and evaluate appropriate mitigation strategies to reduce public exposures to harmful pollutants. The proposed EICG amendments have been developed to support multiple CARB and air district program needs, and are necessary to: • Reflect significant advances in our understanding of the health risks of toxic air pollutants; • Enhance the comprehensiveness, consistency, and transparency of the air toxics emissions data collected from a large number of facilities in California; • Align the Hot Spots program with other regulations and requirements already in place to ensure consistency and minimize