AIR POLLUTION
CONTROL DISTRICT

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AB 617 BARCT

Imperial County Air Pollution Control District

AB 617 BARCT Implementation Schedule


Assembly Bill (AB) 617 (C. Garcia, Chapter 136, Statutes of 2017) amended Health and Safety Code Section(1) 40920.6. This section requires each district that is a nonattainment area for one or more air pollutants to adopt an expedited schedule for the implementation of best available retrofit control technology (BARCT) on specific facilities by the earliest feasible date, but in any event not later than December 31, 2023. Local air district are required to adopt this schedule before January 1, 2019. The schedule apply to each industrial source that, as of January 1, 2017, was subject to the California Green House Gas (GHG) Cap-and-Trade program. The schedule does not apply to an emissions unit that has implemented BARCT due to a permit revision or a new permit issuance since 2007.

To develop the BARCT schedule, the air district should take into consideration the local public health and clean air benefits to the community, cost effectiveness of control options, and air quality and attainment benefits of control options. BARCT is defined in California Health and Safety Code as an emission limitation that is based on the maximum degree of reduction achievable, taking into account environmental, energy, and economic impact by each class or source category.

AB617 BARCT Applicability

Imperial County is a nonattainment area for California ozone and particulate matter (PM10 and PM2.5) standards and includes two facilities that were subject to the Cap-and-Trade program as of January 1, 2017.(2)

Spreckels Sugar Company, Inc
NAICS Code: 311313 Beet Sugar Manufacturer
Address - 395 W Keystone Rd, Brawley CA

U.S. Gypsum Company
NAICS Code: 327420 Gypsum Product Manufacturer
Address - 3810 W Evan Hewes Hwy, Plaster City, CA

The two above listed facilities are complex industrial facilities therefore subject to different district's regulations. However, the large boilers and kilns operated by these facilities produce the emissions that made each facility subject to the California Air Resources Board's Cap and Trade Program and therefore AB 617 BARCT. Spreckels Sugar Company, Inc. operate four large industrial boilers and U.S. Gypsum Co. operates two Wallboard Kilns that account for the large majority of emissions from these facilities.

Spreckels Sugar Company, Inc
Unit Description/Emissions Unit (Fuel/Control)
1. Riley Boiler/Natural Gas/Low NOx Burners, Flue Gas Recirculation
2. CE Boiler/Flue Gas Recirculation
3. Union Boiler/Flue Gas Recirculation
4. Auxiliary Boiler/Flue Gas Recirculation

U.S. Gypsum Company
Unit Description/Emissions Unit (Fuel/Control)
1. Kiln #1/Natural Gas/Low NOx Burners
2. Kiln #3/Natural Gas/Low NOx Burners

Large Industrial Boilers and Process Heaters BARCT

The district has a source specific rule for large industrial boilers and process heaters: Rule 400.2, Boilers, Process Heaters and Steam Generators, adopted February 23, 2010. The NOx emission limits in Rule 400.2 are 30 ppmv or 0.036 lb/MMBTU of heat input when operated on gaseous fuels; 40 ppmv or 0.052 lb/MMBTU of heat input when operated on liquid fuels. During the adoption process, the district identified all potential control options for industrial boilers and process heaters (selective catalytic reduction, selective non-catalytic reduction, flue gas recirculation, low NOx burners), reviewed the cost-effectiveness of all potential control options, and reviewed those findings at a public meeting prior to the adoption hearing. The U.S. EPA has approved the NOx limits in Rule 400.2 as meeting Reasonable Available Control Technology (RACT) for Imperial County. In order to comply with AB617 BARCT requirements, the ICAPCD will identify one or more potential control options, review the cost-effectiveness of each potential control option, calculate the incremental cost-effectiveness of each potential control option, and then consider and review that information at a public meeting. The ICAPCD will complete this process during calendar year 2019, including the review of Rule 400.2 (if necessary) with an expedited implementation schedule with a final compliance date not later than December 31, 2023.

Wallboard Kiln BARCT

The ICAPCD has a source specific rule for Wallboard kilns: Rule 400.4, Emissions of Oxides of Nitrogen from Wallboard Kilns, adopted October 23, 2013. The purpose of Rule 400.4 is to limit NOx emissions from wallboard kilns used for drying in the manufacturing process of gypsum wallboard. Rule 400.4 limits the emissions of NOx to 30 ppmv or 0.036 lb/MMBTUpounds of heat input when operated on gaseous fuels, 40 ppmv or 0.052 lbs/MMBTU of heat input when operated on liquid fuels. During adoption process, the ICAPCD identified all potential control options for wallboard kilns (low-NOx burner, selective catalytic reduction and selective non-catalytic reduction), reviewed the cost-effectiveness of all potential control options for wallboard kilns, and reviewed those findings at a public meeting prior to the adoption hearing. The emission limit of NOx for Rule 400.4 is considered by the US EPA to constitute RACT. In order to comply with AB617 BARCT requirements, the ICAPCD will identify one or more potential control options, review the cost-effectiveness of each potential control option, calculate the incremental cost-effectiveness of each potential control option, and then consider and review that information at a public meeting. The ICAPCD will complete this process during calendar year 2019, including the review of Rule 400.4 (if necessary) with an expedited implementation schedule with a final compliance date not later than December 31, 2023.

Other Sources

Each of the identified facilities is a complex industrial facility. The above discussed kilns and boilers produce the emissions that made each facility subject to the California Air Resources Board's Cap and Trade Program and therefore AB 617 BARCT. Any other control options considered for these sources will be analyzed in accordance with all applicable requirements, including AB 617 mandatory considerations.

Mandatory Considerations

H&SC Section 40920.6(d) requires prior to adopting the BARCT implementation schedule that the ICAPCD hold a public hearing and take into account the following:

Local Public Health and Clean Air Benefits (H&SC Section 40920.6(d)(1))
None of the AB 617 BARCT sources represent a risk to local public health; each is in compliance with all current air quality-related health requirements, including all of criteria, hazardous and toxic air contaminants.

Cost Effectiveness (H&SC Section 40920.6(d)(2))
The ICAPCD evaluates every rule proposal for cost effectiveness, and will do so for the industrial boilers and Wallboard Kilns rules.

Air Quality and Attainment Benefits (H&SC Section 40920.6(d)(3))
Imperial County is overwhelmingly impacted by international transport of air pollution from Mexicali, Mexico. As the two AB 617 BARCT sources are downwind the international border, AB 617 BARCT implementation within the Imperial County will result in local air quality benefits but no attainment benefit.

Footnotes
1. All statutory references throughout are to the California Health and Safety Code unless otherwise specified.
2. The market-based compliance mechanism cited in H&S Code Section 40920.6(c) is the California Air Resources Board's Cap-and-Trade Program (Program). AB 617 does not expressly define the term "industrial source" the Program includes particular provisions for covered entities that refer to "industrial sectors", "industrial covered entities", "industry assistance", and "industrial facilities." These provisions relate the term "industrial" to certain covered entities or facilities that are eligible for free allowance allocation under the Program. The list provided includes any covered entity that is eligible for free allowance allocation in accordance with the Program requirements based on its engagement in an activity within a particular North American Industrial Code System (NAICS) Code listed in Table 8-1 of the Program. The list excludes opt-in covered entities, and any industrial sources that became subject to the Program after January 1, 2017.

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