State Issues - Region 9

State Issues - Region 9

State & Regional Issues

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Region 9

Region 9: Arizona, California, Hawaii, Nevada, Pacific Islands

For EPA related news and events in Region 9, click here.

California

JULY 2011

The D.C. Circuit Court of Appeals vacated an EPA guidance document which would have allowed states to implement alternative programs in lieu of assessing Clean Air Act Section 185 penalty fees. As a result of the ruling, major source facilities in three designated ozone nonattainment areas will face penalty fees in the coming months. The areas are the South Coast Air Quality Management District (SCAQMD), the San Joaquin Valley, and parts of Los Angeles. Companies in these regions may be assessed nearly $9,000 per ton of emissions that exceeded 80 percent of baseline emissions. Baseline emissions are considered the lower amount of either allowable permitted emissions or actual emissions for the year in which the state failed to meet its attainment deadline. Major facilities located in the SCAQMD nonattainment area are expected to be assessed penalty fees for calendar years 2008 to present, based on 2007 emissions. Facilities in San Joaquin and Los Angeles nonattainment areas will be assessed the fee for 2011, based on 2010 emissions.

DECEMBER 2010

CA LAUNCHES GHG EMISSIONS TRADING SYSTEM On December 16, California’s Air Resources Board approved regulations that impose a large-scale carbon cap-and-trade program on the state’s electric generating plants, refineries, cement kilns and other industrial facilities. The program implements California’s Global Warming Solutions Act of 2006, which requires a 15 percent reduction in GHG emissions by 2020. The new rule sets a limit on emissions from sources responsible for 80 percent of the state’s GHG emissions. This cap will decline each year, initially by 2 percent and then by 3 percent starting in 2015. Companies participating in the program will be required to obtain a sufficient number of emission allowances to cover their annual emissions. Each of these permits will allow the release of one ton of CO2. Initially, most allowances will be given away by the state, but eventually they will have to be purchased at auctions or directly from other companies. Another option is to purchase credits from "offset projects," such as forest preservation programs, that reduce or prevent future releases of carbon. These credits can cover up to 8 percent of a company’s emissions.

JANUARY 2010

EPA Mandates SIP Revisions On January 6, EPA ordered California to submit SIP revisions for three ozone nonattainment areas to include language for assessing and collecting penalty fees under section 185 of the Clean Air Act. These areas include:

Sacramento Metro Area, CA (Severe-15) – Yolo/Solano Air Quality Management District portion; Feather River Air Quality Management District portion; Placer County Air Pollution Control District portion; El Dorado County Air Quality Management District portion.
Southeast Desert Modified Air Quality Management Association (Severe-17) - Includes Coachella Valley
Los Angeles-South Coast Air Basin (Extreme)

JULY 2009

EPA Grants California’s Waiver Request On July 8, the Environmental Protection Agency (EPA) granted California Air Resources Board’s (CARB) waiver request to enforce a regulation designed to control greenhouse gas (GHG) emissions from motor vehicles. Standards will apply beginning with model years 2010. This decision replaces EPA’s prior denial of CARB’s December 21, 2005 waiver request, which was published in the Federal Register on March 6, 2008. For more information, click here.

In addition to enforcing tailpipe emission standards, CARB is considering lowering the GHG reporting threshold from 25,000 metric tons to 10,000 metric tons for industrial facilities. Currently, the state legislature is debating a bill, the Global Warming Solutions Act (AB32), which calls for the reduction of greenhouse gas emissions in California to 1990 levels by 2020, and by 80 percent by 2050. If enacted, AB32 could serve as a precursor to what burdens may come under a nationwide cap and trade program.

FEBRUARY 2009

EPA Revisits California Waiver Decision EPA will reconsider its decision denying California permission to set standards controlling greenhouse gases from motor vehicles. The waiver request was made to allow the state the right to control greenhouse gas emissions from motor vehicles. EPA initially denied the request on March 6, 2008, however on January 26, 2009, President Barak Obama requested that EPA revisit the matter of the denial. EPA will issue a request for public comment in February 2009 and will hold a hearing on the issue in March 2009.

JANUARY 2009

California Prepares to Enforce CAA 185 Provisions EPA has confirmed that California is in the process of submitting revisions to its State Implementation Plan to include language for the collection of CAA 185 fees from major sources in several regions, including:

South Coast Air Quality Management District
San Joaquin Valley
Sacramento Metro
Los Angeles South Coast Air Basin
Southeast Desert Modified Air Quality Management Area

These revisions are under review, and a decision from EPA is expected sometime this year.

AUGUST 2007

California Board Adopts 10 Percent Ethanol Rule California’s Air Resources Board has adopted a resolution stating that all refineries producing gas sold in California will have to blend 10 percent ethanol into their gas, to coincide with new fuel standards set by Governor Arnold Schwarzenegger that will take effect in late 2009. Analysts predict the ruling might nearly double the demand for biofuel in California. In 2006, the state consumed nearly one-fifth of all ethanol sold in the U.S. (Wisconsin Ag Connection, August 8, 2007)