Placer County Air Pollution Control District 1 District Overview 2017 Annual Report MISSION The Placer County Air Pollution Control District’s (District) mission is to manage the County’s air quality in a manner to protect and promote public health by controlling and seeking reductions of air pollutants while recognizing and considering the economic and environmental impacts History 1970—District formed as a division of the Placer County Health Department. ORGANIZATION 1988/1990—Implementation of California Clean Air Act of 1988 and Federal Clean Air Act amendments of 1990. District’s focus expands from criteria pollutants—products of combustion, particulate matter, and lead—to airborne toxic contaminants. The District is governed by a Board of Directors composed of three County Board of Supervisors and one elected official from each of the six County incorporated municipalities: 1994—District became a separate County Department. The Board of Supervisors comprised the District’s Governing Board. 1997—District became a special district with city representatives joining three County Supervisors on the District’s Governing Board. 2006—District efforts expand to include reducing greenhouse gas pollutants to the atmosphere as directed under Assembly Bill (AB) 32. Auburn Colfax Lincoln Loomis Rocklin 2011—District purchased office building at 110 Maple Street, Auburn, across from the Historic Placer County Courthouse. Roseville Budget The District’s Board appoints the Air Pollution Control Officer (APCO). The District’s current annual budget is approximately $4.5 million, and includes over $900,000 in carry over funds each fiscal year. Most District funding comes from a surcharge imposed by the Department of Motor Vehicles to support District activities, along with emission and equipment fees assessed on permitted facilities. The District’s activities are programmed into five separate funds depending on the revenue source. Each fund has its own revenue and expenditure accounts. The District’s philosophy of budgeting revenues conservatively and expenditures adequately has allowed the District to meet its current fiscal needs and provide funding for beginning the upcoming fiscal year, without implementing any cross-the-board permit fee increases since 1998. 2 The District employs 19 full and part-time employees, and is organized into four operating sections: Administrative Services Planning & Monitoring Compliance & Enforcement Permitting & Engineering District Overview 2017 Annual Report The Placer County Region is Diverse and Varied What is the Role of the District in Achieving Clean Air Standards? The District’s jurisdiction includes six incorporated municipalities, and Placer County is a diverse and rich area, spanning many diverse areas. These include: Suburban areas in the southern portion of the County, such as Roseville, Rocklin and Lincoln, Loomis and Granite Bay; Rural farming and oak lands in the northern and western portion of the County; Mountain communities on the western slope of the Sierra such as Auburn, Colfax, and Foresthill; Nearly 560,000 acres of public and private forested land east of Colfax to the Nevada state line; and The diversity of Lake Tahoe’s northern and western shores. Regulation, Enforcement, Advocacy Placer County Air Quality Plans In 1970, Placer County had a population of 78,280 and was largely rural, with agriculture and a few large businesses and government facilities supporting the economy. Today the population is nearly 350,000, with diverse employers such as Hewlett-Packard and Sierra Pacific Industries, along with a large number of service and IT sector companies. Because of the geographic and economic diversity in Placer County, the District employs a variety of strategies intended to reduce emissions of air pollutants. The District is one of 35 local air pollution control agencies in California. Local air districts are charged with the enforcement of local air pollution control rules that have been adopted by each district’s Board of Directors, as well as certain state and federal air quality requirements. The primary duty of the local air districts is the regulation and control of air pollution created by industry and businesses, while mobile sources are the responsibility of the State Air Resources Board (ARB). Local air districts permit the control of air pollution by businesses, regulating open burning, responding to odor and dust complaints, and encouraging the reduction of emissions in areas that are not regulated directly. Districts are also responsible for preparing, adopting, and implementing air quality plans that seek to achieve and maintain state and federal air quality standards. These plans include the commitment to implement measures in order to meet federal and state air quality standards. In addition, local air districts usually act as a commenting agency under the California Environmental Quality Act (CEQA) with respect to land use projects. 3 District Overview 2017 Annual Report Where Does Air Pollution Come from? Air pollution comes from many different “sources”. This includes larger stationary sources, such as power plants and boilers, and smaller sources such as dry cleaners and gas stations. Even small emission sources, such as the use of consumer products and paints at home, have an impact. However, in Placer County, the vast majority of emissions come from mobile sources, such as cars, trucks, and trains. One of the District’s primary responsibilities is to regulate emissions of combustion pollutants, dust, and toxic compounds that are discharged to the atmosphere . ROG Emissions (20 tpd)* Consumer Products/ Paints 30% On-road Mobile 17% NOx Emissions (21 tpd)* Residential Heating 5% On-road Mobile 48% Stationary Sources 28% Off-road Mobile 25% Stationary Sources 21% District Permit 24% Off-road Mobile 26% District Permit** 11% Ozone Pollution The District meets all federal ambient air quality standards, with the exception of ozone (summertime smog). Ozone (O3) is produced through the reaction in the atmosphere of oxides of nitrogen (NOx), and reactive organic gases (ROG), also called Volatile Organic Compounds (VOC), along with sunlight. Typically, ozone exceedances of federal air quality standards occur during long stretches of hot stagnant days. Emissions from all Placer County emission sources, as well as emissions that blow in from other parts of the State, contribute to the County not meeting federal air quality standards for ozone. 4 District Overview 2017 Annual Report How Does the District Reduce Emissions? The District utilizes many strategies to reduce emissions. These include: Issuing operating permits for commercial or manufacturing operations, as required under federal and state law; Measuring Air Quality The District operates four official monitors in the County to measure air quality on a 24-hour basis. These monitors, combined with one operated by ARB, provide valuable real-time information on the “State of the Air.” Current air quality information can be found on the District’s website at www.placerair.org Responding to resident complaints of air pollutant nuisances and odors; Concurrent compliance activities to ensure expected emission reductions and provide a “level playing field” for businesses; Developing and implementing cost-effective regulations to reduce emissions; Providing incentives to local businesses to acquire cleaner equipment and vehicles; District’s Tahoe City Air Monitoring Station Working with local jurisdictions to minimize impacts of land use decisions; and Working with federal, state and regional partners to ensure that sources of air pollution from other areas that impact Placer County are reduced. In implementing these strategies, the District continually seeks to minimize the regulatory burden on business and industry. The District has also sought to level the regulatory field by developing regulations that are consistent with those of neighboring air districts, and through even-handed enforcement. The monitors, along with who operates them, are: Lincoln (District) Roseville (ARB) Auburn (District) Colfax (District) Tahoe City (District) In addition, the District deploys additional mobile monitors during periods of exceptional events, such as wildfires, to inform the public and public health officials on local air quality readings and potential impacts on residents and first responders. 5 District Accomplishments District Accomplishments 2017Annual AnnualReport Report 2017 District Accomplishments The District has a long legacy of successful air quality efforts Since its inception, the District has successfully implemented a number of actions and initiatives to reduce emissions in Placer County, meet air quality standards, and improve public health for all residents. Many of the programs that are in place today are a result of work that has occurred over the last decade to continue to improve air quality and provide a better quality of life to those who live and recreate in Placer County. Forestry Initiatives Rail Yard Emissions The District continues to initiate a number of studies and programs to better understand the emissions and greenhouse gas impacts of wildfires, open pile burning, and prescribed fires in Placer County. These impacts were recently exacerbated by the epidemic of tree mortality, caused by the combination of prolonged drought and bark beetle infestation, making the occurrence of more frequent and severe wildfires more likely. In partnership with the District, Union Pacific has undertaken a number of strategies to reduce toxic diesel particulate emissions at the J.R. Davis Rail Yard in Roseville by 25 percent, relative to 2004 levels. Known as the “Western States Hub”, the J.R. Davis Yard was considerably expanded in the wake of Union Pacific’s merger with Southern Pacific Railroad, and is now the largest classification rail yard west of the Mississippi River. In the last decade alone, the frequency and intensity of wildfires have caused over 100,000 acres to burn, about 20% of the forested lands in the County. To address this, the District is working with forest land managers on prescribed burning, and has an interest in promoting feasible alternatives such as biomass to energy, renewable fuels, and biochar. The District has teamed with other public and private stakeholders to implement economically self-sustaining forest management activities, which restore the forest land to a fire-resilient condition, and will help reduce criteria pollutant and greenhouse gas emissions. 6 District Accomplishments 2017 Annual Report Successful Incentive Programs Sustainability Efforts Clean Air Grants (CAG) The District has made significant efforts towards sustainability of the District’s operations, through a reduction of energy usage overall and more reliance upon electricity than fossil fuels (i.e. gasoline). Prior to moving into the 110 Maple Street offices in 2011, insulation improvements were made; two main heating, ventilation and air conditioning units were replaced with higher more energy efficient ones; higher efficiency lighting was installed; and the conventional tank water heater was replaced by an on-demand heater. The District has an extremely successful Clean Air Grant incentive program that continues to reduce criteria pollutants from unregulated activities and sources. Since 2001, approximately $17.4 million has been invested locally on emission reducing projects, which have resulted in a total of 1,172 tons of NOx, ROG and PM reductions. Since that time, the District has installed a solar voltaic system which produces 63% of the building’s annual power usage, and deployed a District vehicle fleet that includes two hybrid vehicles—Toyota Prius and Honda Civic. District CAG Program Funded Truck Woodstove Incentive Program Since 2008, the District has offered incentives for the replacement of older non-certified woodstoves with cleaner burning alternatives. In total, 415 non-certified stoves have been replaced throughout the County, resulting in reductions of 8.5 tons per year of particulate matter (PM) emissions, which has helped the region meet ambient PM standards and reduce the local impacts of wood smoke. Solar Panels at District Office at 110 Maple Street, Auburn 7 2016: Building on Progress 2017 Annual Report 2016: Building on Progress 2016 was a busy and successful year for the District. District staff continued working and advocating on biomass and forest resiliency issues, made continued progress on reducing air pollution emissions throughout the County as well continued to update the District’s regulatory program and streamline operations and improve sustainability. Revising CEQA Project Review Policy Updating District Regulations The District Board approved a new policy regarding how staff will review land use projects under CEQA. The policy contains two components, including revised thresholds of significance for criteria pollutants and new first of their kind thresholds for GHG emissions, as well as new policy direction that will better ensure consistency and transparency in staff’s reviews and recommendations. In 2016, the District Board, in keeping with the statutorily required 2016 Regulatory Measures List, amended two existing rules and rescinded two other rules that are no longer required. These amendments were needed to address comments from the U.S. Environmental Protection Agency (U.S. EPA) so that the amended rules would be State Implementation Plan (SIP) approvable, and to remove obsolete requirements and references. Tracking Air Quality These changes will assist lead agencies in preparing legally adequate environmental documents with professional analyses, to address potential air quality impacts from land use projects, and ensure that any environmental mitigation efforts focus on achieving local benefits. 8 District staff worked with ARB and the other local air districts in the Sacramento region to certify ambient 2015 Ozone and fine particulate (PM2.5) monitoring data. The data certification process confirmed that the Sacramento Region attains the federal 1997 8-hour Ozone standard and 2006 PM2.5 daily average standard, based on the data from the latest three year period (20132015). In addition, several training sessions for monitoring staff were budgeted in order to maintain and continue enhancing the District’s air monitoring program. 2016: Building on Progress 2017 Annual Report Continuing Efforts on Biomass and Forest Resiliency In 2016, the District continued to make significant progress on our numerous forest sustainability, resiliency and biomass energy initiatives that reduce air pollution through: Utilization of forest wastes for energy or biochar as an alternative to open burning; Better quantification of the emissions associated with open pile burning; Fostering cooperative efforts with private and public technology providers, land managers, state agencies and academia; Hazardous fuel reduction thinning and defensible space clearing to mitigate the size and severity of wildfire, including participation on the State and County Tree Mortality Task Forces; and Development of tools that quantify and provide monetary value to air emission reductions, while also offering other societal benefits such as renewable energy; reduced fire-fighting costs; and protection of upland watersheds, timber resources, forest ecosystems, and wildlife habitat. Forest After Fuel Reduction Treatment Forest without Fuel Reduction Treatment The District also worked with our numerous partners and others on the successful approval of key legislation that includes: Better enabling small biomass facilities to interconnect with investor owned utilities in Senate Bill (SB) 840; Addressing electricity interconnection issues for small biomass projects through SB 850; Requiring the procurement of 125 megawatts (MW) of bioenergy derived from dead and dying trees under SB 859, which directly benefited the continued operation of the Rio Bravo bioenergy facility in Lincoln through a new five year contract for 24 MW of procurement by SCE; and The inclusion in SB 830 of $25 million for the State’s Healthy Forest program. 9 2016: Building on Progress 2017 Annual Report Providing Local Investments in Cleaner Technologies Efficient Permitting PLACER COUNTY AIR POLLUTION CONTROL PERMITTED FACILITIES The District Board approved over $1 million in grant funding for 14 clean air projects to private and public fleets in the County. Through these investments, staff estimates a total of over 14 tons of NOx, ROG, and PM will be reduced annually over the life of the projects. The District is also currently in its third year of implementing a woodstove program in the Lake Tahoe region on behalf of the Tahoe Regional Planning Agency. The goal of this program is to replace older non-certified woodstoves with cleaner burning alternatives. In 2016, 32 vouchers were issued to qualified applicants, and 26 were redeemed for new cleaner stoves. NUMBER OF FACILITIES 250 200 150 100 CITIES AND UNINCORPORATED AREA Ensuring Compliance and Responding to Complaints District staff continued to implement an effective and fair enforcement and resident complaint resolution program. Over 130 citizen complaints were investigated, half concerning burning, and the remainder equally from odors, dust, and other miscellaneous causes. In addition, over 140 violation notices were issued, and $111,000 in penalties collected, primarily through mutual negotiated settlement with violations. Further, over 600 facilities were inspected, with no backlog in inspections remaining, and over 40 emission source tests were observed. These activities are critical to ensure that expected emission reductions from the District’s programs are realized, and that there is a level playing field for compliance among regulated and permitted sources in the County. 10 UNINCORPORATED ROSEVILLE ROCKLIN LOOMIS LINCOLN COLFAX 0 AUBURN 50 As prescribed under federal and state law, the District successfully implemented its permitting requirements through the issuance of 1318 operating permits in FY 15-16. These permits were issued to nearly 800 facilities in Placer County. Of these facilities, five facilities are required to have five-year federal operating permits, commonly known as “Title V” permits, under the requirements of the Federal Clean Air Act. In 2016, one Title V permit required renewal. Permitted Facilities Inspections 2016: Building on Progress 2017 Annual Report Continuing to Improve Sustainability and Improve Efficiency Representing the District at the State and Federal Level The District completed several efforts to improve its sustainability, consistent with its long track record of success. This included the installation of two plug-in electric vehicle DC fast charging stations at the District office, coupled with the purchase of a new plug in hybrid electric vehicle, a 2017 Chevy Volt. The District has a long history of engaging in policy discussions and advocacy at the federal and state level, and 2016 was no exception. This included: District staff participation in the Sacramento Region’s annual “Cap-to-Cap” advocacy delegation, which included discussions with congressional staff and federal agencies on air quality, wildfire, and forest resiliency topics. The District’s selection The vehicle replacement was coordinated with the retirement of two older, less fuel efficient vehicles from the District fleet. Staff also began the replacement of halogen lighting in the District offices with low-energy LED lights. To improve efficiency, staff completed a Capital Facility Five Year Maintenance Plan which consists of a schedule of required long term maintenance for the building exterior, parking lot, roof and interior flooring. A long-term vehicle replacement fleet management schedule was also developed. District staff also initiated an organization and resource assessment, including a review of the District’s mission objectives and the alignment of resources, as well as the availability of funding and staff to do the work needed. Finally, much effort was given to commencing work on creating unique branding of the District’s website and implementing a new web address— www.placerair.org, as well as beginning work on developing a new permitting, enforcement and complaint portal for staff and citizens to replace an older system that is reaching the end of its useful life. to co-chair the Mobile Source and Fuels Committee of the National Association of Clean Air Agencies, which provides a unique opportunity to engage nationally on mobile source issues that disproportionally impact emissions and air quality in Placer County. The District’s election to the Secretary and Chief Financial Officer positions for CAPCOA, in addition to membership on their Board of Directors and on their Climate Protection Committee. The District’s selection to serve on the Steering Committee of the Capital Region Climate Readiness Collaborative. These assignments provide both an influential venue for the District’s priorities to be considered in statewide policies affecting air quality and incentive funding, as well as unique opportunities to help shape the efforts of local jurisdictions throughout the region on climate adaptation and policies. 11 Looking Ahead to 2017 2017 Annual Report Looking Ahead to 2017 2017 is expected to be another productive year, with several new efforts planned and a significant amount of work expected in order to continue building on the successes of 2016. Forest Resiliency and Biomass Energy Efforts will Remain a Priority The District will continue to be a recognized world-wide leader in advancing forest and biomass efforts in 2017, with goals to: Approve a fuel thinning offset protocol into a voluntary GHG Offset Exchange, with the long-term goal of seeking approval of a compliance grade offset protocol approved by the ARB for use in the State’s Cap and Trade Program; Comprehensively characterize black carbon emissions from open pile burning and forest and ag wastes, and develop a black carbon offset protocol; Finalize cooperative work with technology providers demonstrating the emissions from biomass gasification/internal combustion engine systems; Coordinate biochar GHG offset projects through the CAPCOA GHG Exchange; Assist the County and local jurisdictions in developing proposals for the use of State forest resiliency funds, and seek additional state and local funding for such efforts; Participate and contribute technical expertise to forest restoration working groups; and Advocate for, develop, and implement state legislation that values the wide range of societal benefits of forest restoration and distributed biomass energy activities, particularly focusing on the California Forest Carbon Plan, released in January 2017. 12 Looking Ahead to 2017 2017 Annual Report Implement New State and Federal Regulations In 2017, District staff plan to begin implementing several new state and federal regulations that were approved in 2016. The California Air Pollution Control Officer’s Association (CAPCOA) updated their Air Toxics “Hot Spots” Program Public Notification Guidelines (Guidelines). The District plans to adopt a new policy to follow these Guidelines because a recent change in health risk analysis methods resulted in 3-4 times higher risk levels than previous methods. Thus, the air toxic thresholds at which a risk is considered significant, and at which public notification is required, will be exceeded more frequently. Revisions were made by U.S. EPA to Clean Air Act permitting program public notice regulations so that the posting of notice announcements may take place on an agency’s webpage (eNoticing), in place of the traditional publication of public notices in a newspaper of general circulation. Several existing District rules need to be amended to implement the new eNoticing regulations. U.S. EPA adopted a revision to its standards for solid waste landfills and emission guidelines to control greenhouse gas emissions which will impact Placer County’s Western Regional Sanitary Landfill (WRSL), and possibly the gas collection system of the Eastern Regional Sanitary Landfill (ERSL). District Staff are working closely with CAPCOA and ARB to better understand any new requirements, and to align existing state requirements and District rules with the new U.S. EPA requirements. Plans for meeting Federal Ambient Air Quality Standards Continue to Improve Efficiency and Modernize District Operations District staff will continue working with ARB and other local air districts in the Sacramento Region to finalize the regional ozone State Implementation Plan (SIP) documents for the federal 2008 8-hour Ozone standard. The District anticipates releasing the draft SIP for public review in early 2017 and submitting it to the District Board for approval in 2017. In the upcoming 2017-18 fiscal year, District management will continue to evaluate its functions to better maximize the air quality and economic benefits to Placer County residents and businesses. District management will align this work with existing and required staff and contract resources to determine what work can be done, and where additional resources are required. Staff also plan to revise the existing PM2.5 attainment implementation/maintenance plan which was suspended by U.S. EPA for review. The latest three-year monitoring data (2013-2015) has demonstrated that the Sacramento region attains the federal 2006 PM2.5 daily average standard. The existing plan will be updated, based on the latest three-year data and control strategies, to demonstrate that the Sacramento Region can remain in attainment of the federal PM2.5 standard. The revised plan is anticipated to be submitted to the Board for approval in late 2017. On the fiscal side, management will continually evaluate work and available resources against available funding sources, to determine if funds are being utilized effectively and whether funds should be re-directed to support high priority projects. This will include evaluating core District functions, the ability to effectively recover District implementation costs, and where appropriate, identifying additional revenue options. Finally, an update to the District organizational structure will be considered, to accommodate succession planning, as well as ongoing and future goals. 13 Looking Ahead to 2017 2017 Annual Report Implementing the District’s New CEQA Policies Continue to Incentivize the Deployment of Cleaner Vehicles and Woodstoves The District will continue to support the investment of incentive funding to local fleets and vehicle operators to achieve voluntary emission reductions from mobile sources throughout the County. Implementing the program, which is estimated to provide an estimated $840,000 for fiscal year 2016-17, will include a robust outreach effort that includes both print and online advertising, emails to fleet operators, and public workshops. The grant application acceptance period is open through February 24, 2017. The District will update its CEQA Handbook in 2017 to incorporate the policy changes and significance thresholds previously approved by the Board. Working cooperatively with stakeholders, project proponents and local jurisdictions, the update will incorporate a number of changes, including: Components of the District’s adopted CEQA Review Policy; Recent updates of CEQA guidance, protocols, and reports; Computer emission modeling revisions; Updates to address court findings regarding CEQA project litigation; “User-friendly” content that readers can understand; Information that practitioners can use in the preparation of analyses. In addition, staff will work with local jurisdictions on the development of qualified Climate Action Plans to assist with their review and approval of local land use projects. Ensuring CEQA Compliance in the District’s Permit Program The District is also working with CAPCOA on potential new statewide funding for a woodstove exchange program. This statewide program is funded by California Greenhouse Gas Reduction Funding and is anticipated to be launched in 2017 when the program’s administrative guidance is finalized by ARB. If the implementation guidelines of the potential program meets the needs of County residents, this program can provide new funding for upgrading non-certified woodstoves in rural areas. 14 Recently, other air districts in California were sued for issuing permits that were allegedly discretionary, rather than ministerial, which put into question how those Districts handled CEQA review of those projects. In 2016, District staff have better defined the District’s program for compliance with CEQA in the permitting of stationary sources, with a thorough legal review of the template permits and associated processes. District Counsel has confirmed that most permit evaluations and approval determinations are ministerial, and is finishing up a process for handling non-ministerial projects when they occur. Looking Ahead to 2017 2017 Annual Report Effectively Engaging the State on Climate Policy and Planning Since 2006, The Legislature has approved and the Governor has signed a number of key climate bills that direct the State’s efforts to address climate change. These include, but are not limited to: AB/SB 32 which, combined, will reduce statewide GHG emissions by 40% from 1990 levels by 2030; and SB 605/SB 1383 which together identify short lived climate pollutants such as black carbon and methane, and establish 2030 emission reduction targets. To implement the first two of these bills, the State is required to regularly develop, update and implement a number of planning documents. These include the ARB’s AB/SB 32 Scoping Plan, and its SB 1383 Short Lived Climate Pollutant (SLCP) Plan. In December 2016, ARB released its draft SLCP Plan, and its draft Scoping Plan in January 2017. District staff, along with our partner stakeholders, are actively engaged with ARB on the development of these plans, both of which are expected to be approved in 2017. SLCP Plan Short-lived climate pollutants are powerful climate forcers that remain in the atmosphere for a much shorter period of time than longer-lived climate pollutants, such as carbon dioxide (CO2). Their relative potency, when measured in terms of how they heat the atmosphere, can be tens, hundreds, or even thousands of times greater than that of CO2. While recognizing the significant contribution of black carbon from wildfires, in the most recent draft of the SLCP plan, ARB removed recommendations for reducing wildfire black carbon emissions. We believe it is important for the State to identify how it will address the largest source of black carbon emissions in California, and believe that both SB 605 and SB 1383 require the SLCP Plan to be updated to address this deficiency. Scoping Plan In their draft Scoping Plan, District staff continue to encourage and recommend ARB do a better job of: Reflecting the benefits of forest biomass to energy within its working lands discussion, as well as recognizing the benefits of other uses of forest biomass such as biochar; Considering the impacts of placing development near transportation corridors; Clarifying how local actions are considered in the statewide accounting of GHG reduction actions; and Encouraging and identifying local GHG emission reduction actions that can be incorporated into local land use decision-making. 15
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