BOARD MEETING DATE: December 3, 2010
AGENDA NO. 35
PROPOSAL:
Amend Rule 1415 – Reduction of Refrigerant Emissions from Stationary Refrigeration and Air Conditioning Systems, and Adopt Rule 1415.1 – Reduction of Refrigerant Emissions from Stationary Refrigeration Systems
SYNOPSIS:
The proposed amendments to Rule 1415 expand the scope of the rule to include provisions for reducing emissions of high global warming potential refrigerants utilized in stationary air conditioning systems and other administrative changes. Staff is also proposing a new rule, Rule 1415.1, to incorporate provisions for reducing emissions of certain high global warming potential refrigerants that will be consistent with CARB’s statewide rule for stationary refrigeration systems. The proposed new rule will consolidate all other emission control requirements for stationary refrigeration systems currently in Rule 1415.
COMMITTEE:
Stationary Source, November 19, 2010, Reviewed
RECOMMENDED ACTIONS:
Adopt the attached resolution:
Certifying the Final Environmental Assessment for the proposed rules;
Amending Rule 1415 – Reduction of Refrigerant Emissions from Stationary Refrigeration and Air Conditioning Systems; and
Adopting Rule 1415.1 – Reduction of Refrigerant Emissions from Stationary Refrigeration Systems.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Rule 1415 – Reduction of Refrigerant Emissions from Stationary Refrigeration and Air Conditioning Systems was adopted on June 7, 1991 to reduce emissions of Class I and Class II ozone-depleting refrigerants from stationary refrigeration and air conditioning systems. Class I refrigerants are typically chlorofluorocarbons (CFCs), while Class II refrigerants are all hydrochlorofluorocarbons (HCFCs), and are listed under section 602 of the Clean Air Act.
Production of CFCs and HCFCs were designated for phase out under the Montreal Protocol, primarily due to concerns about stratospheric ozone depletion. The use of these ozone depleting substances (ODS) as refrigerants is also regulated for the same reason. As a result of the Montreal Protocol’s phase-out of ODS, the use of CFCs and HCFCs as refrigerants has been replaced with hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs), generally referred to as ODS substitutes. Subsequent to undertaking control strategies to address ozone depletion, the world became increasingly concerned about global warming and man-made activities that contribute to it. And, while these ODS substitutes are not ozone depleters, they have much higher global warming potential. The use of ODS substitutes are increasing, and will continue to increase as ODS refrigerants are replaced by these high global warming potential ODS substitutes, particularly the HFCs. Consequently, greenhouse gas (GHG) emissions are projected to increase on a CO2 equivalent basis.
In December 2009, CARB approved the Management of High Global Warming Potential Refrigerants for Stationary Sources regulation (commonly called the Refrigerant Management Program) to help reduce the state’s GHG emissions to 1990 levels by year 2020, as required by the California Global Warming Solutions Act of 2006 (AB 32). This statewide regulation will go into effect on January 1, 2011.
The Refrigerant Management Program’s (RMP) goal is to reduce emissions of high global warming potential (GWP) refrigerants such as CFCs, HCFCs, HFCs, and PFCs used in commercial and industrial refrigeration systems. The regulation requires registration, leak detection and monitoring, leak repair, retrofit or retirement, reporting, and recordkeeping for the affected industries including owners or operators of refrigeration systems, any person who services a refrigeration system, and distributors, wholesalers, and reclaimers of high GWP refrigerants.
Existing Rule 1415 applies to both stationary refrigeration and air conditioning systems whereas the Refrigerant Management Program covers only stationary refrigeration systems. Staff’s goal is to ensure that the AQMD refrigerant rule is equivalent in every aspect to the CARB regulation and to align AQMD’s program with CARB’s Refrigerant Management Program.
Public Process
During the development of PAR 1415 and PR 1415.1, staff worked with CARB and members of industry affected by the proposed rules. A public workshop was held on September 21, 2010, where approximately 50 people attended the public meeting. Comments received during the public workshop, including staff’s responses, are summarized in the Final Staff Report.
Proposal
Staff is proposing to divide the emission control requirements for stationary refrigeration and air conditioning systems into two rules. Staff believes that having separate rules for air conditioning and refrigeration systems would minimize confusion with regard to rule applicability, improve clarity, and enhance rule enforceability.
PAR 1415 - Reduction of Refrigerant Emissions from Stationary Air Conditioning Systems will retain all provisions for reducing refrigerant emissions from air conditioning systems only. In addition, staff’s proposal expands the scope of the rule to include all high GWP refrigerants, and allows an extended leak repair period of up to 45 days in situations where a certified technician is not available, or the part(s) needed to complete the repair is unavailable within 14 days of initial leak detection. This allows the same flexibility afforded to owners or operators of refrigeration systems. Staff is also proposing to remove the provision requiring the use of a certified technician when conducting leak inspections; thus, making it consistent with state and federal leak inspection requirements.
PR 1415.1 - Reduction of Refrigerant Emissions from Stationary Refrigeration Systems will establish more frequent leak inspections and utilize best practices in refrigerant management and system maintenance, resulting in refrigerant leaks being detected and repaired more quickly; thus, reducing overall refrigerant emissions. Further, PR 1415.1 will align AQMD’s program with the statewide rule (Refrigerant Management Program) by adopting all provisions in the state regulation pertaining to the control of high GWP refrigerant emissions and consolidate all emission control requirements for stationary refrigeration systems currently in Rule 1415.
PAR 1415 will affect about 9, 991 facilities with stationary air conditioning systems, while PR 1415.1 is expected to impact approximately 11,155 facilities in the South Coast Air Basin.
Appendix A – Summary of Proposal contains details of the proposed changes to Rule 1415 as well as the proposed rule provisions for PR1415.1.
Emission Reductions – GHG Only
The current GHG emissions inventory for stationary air conditioning systems is 0.5 MMTCO2E, and 5.1 MMTCO2E for stationary refrigeration systems. Implementation of the proposal is expected to achieve GHG emission reductions of 3.5 MMTCO2E in the South Coast Air Basin. The emissions impacts of allowing longer repair periods in PAR 1415 and PR 1415.1 could result in total foregone CO2E emissions of 10,964 metric tons per year, which is a small amount when compared to the emission reductions anticipated from the proposal.
California Environmental Quality Act
PAR 1415/PR 1415.1 is considered a “project” as defined by the California Environmental Quality Act (CEQA), and the AQMD is the designated lead agency. Pursuant to CEQA and AQMD Rule 110, AQMD staff prepared a Draft Environmental Assessment (EA) to analyze potential adverse environmental impacts that could be generated from the proposed project. The Draft EA was circulated for a 30-day public review and comment period from November 2, 2010 to December 1, 2010. AQMD’s review of the proposed project shows that the project would not have a significant adverse effect on the environment; therefore, pursuant to CEQA Guidelines §15252, no alternatives or mitigation measures were included in the Draft EA.
Cost and Socioeconomic Analysis
The proposed amendments to Rule 1415 would add a $114.66 registration fee on facilities with air conditioning systems that use HFC and PFC refrigerants. The estimated total additional cost to these facilities for PAR 1415 is $229,000, payable to the AQMD every two years, beginning in 2012. PR 1415.1 would require facilities with refrigeration systems using ODS, HFC, and PFC refrigerants to register with AQMD every year, until CARB registration begins. The total cost of Proposed Rule 1415.1 registration ranges from a low of $516,000 in 2014 to a high of $1,279,000 in 2011. There would be no fees paid to the District after 2015 as full implementation of CARB’s RMP begins.
AQMP and Legal Mandates
The proposed amended rule and proposed new rule are not the result of a control measure of the 2007 AQMP. However, PR 1415.1 implements the state requirements for stationary refrigeration systems.
Implementation and Resources
Current AQMD resources are sufficient to implement PAR 1415 with no additional fiscal impact. With consideration for PR 1415.1, the AQMD will enter into a Memorandum of Understanding with CARB on implementing a compliance review program utilizing AQMD enforcement resources to be compensated by implementation fees collected by CARB.
Attachments (ZIP, 1.1m)
Summary of Proposal
Rule Development Process
Key Contacts
Resolution
Proposed Amended Rule 1415 Language
Proposed Rule 1415.1 Language
Final Staff Report
Environmental Assessment (Revised 12/2/2010)
Erratum (DOC, 23k)