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February 2022 l Volume 2022-1

In This Issue

Air District Strengthens Permit Rules to Protect Communities
Community Advisory Council Holds First Meeting
Air District Represents Bay Area at COP26
Climate Tech Finance Funds Electric Vehicle Adoption
Air District Settles Case with Air Liquide
Air District Offers Millions in Grants
Upcoming Events

In this issue, you’ll find articles about amendments to the Air District’s permitting rules, the first meeting of the Air District’s new Community Advisory Council and Air District attendance at the COP26 Climate Change conference in Glasgow. Other articles cover the Climate Tech Finance program’s support of an electric vehicle solutions management company and a recent settlement with Air Liquide. Current grant opportunities are also summarized.

Air District Strengthens Permit Rules to Better Protect Overburdened Communities

smokestack

In December, the Air District’s Board of Directors adopted amendments to Regulation 2, Rule 1: General Requirements, and Regulation 2, Rule 5: New Source Review of Toxic Air Contaminants to better address air pollution in areas overburdened by environmental and health stressors. 

Although air quality in the region has improved and cancer risk from pollution has declined drastically since 1990, pollution exposure remains uneven at the local level. The state Office of Environmental Health Hazard Assessment's recently released CalEnviroScreen 4.0 tool indicates areas with poor air quality tend to have higher community health vulnerability.

To address these localized health impacts in overburdened communities, Air District staff met with community advocacy organizations to develop potential concepts and hear recommendations on how the permitting process could be more health protective. Through a series of public workshops and a public comment period, Air District staff drafted proposed amendments to Rule 2-1 and Rule 2-5 that will:

  • Define overburdened communities
  • Set more stringent cancer risk limit in overburdened communities to 6 in 1 million
  • Enhance public notifications for projects within overburdened communities
  • Update gasoline dispensing facilities health risk screening guidelines
  • Extend permit review timelines

Common sources of toxic air contaminants that may be impacted by these rule amendments include stationary engines, gas stations, soil vapor extraction, crematoria and others. More information regarding Rule 2-1 and Rule 2-5 is available on the Air District’s Current Rules web page.

Air District's Community Advisory Council Holds First Meeting

Community street graphic

The Air District’s Community Advisory Council held its first meeting on January 13. 

In a historic moment, the Air District Board of Directors approved the formation of the Air District’s first Community Advisory Council on November 17, 2021. The Community Advisory Council will advise the Air District’s Board of Directors on environmental justice and equity-based policy and is the first body of its kind at the Air District.

The Air District views formation of the Community Advisory Council as a major step towards resolving disparities in communities overburdened by air pollution. The input and unique perspectives of representatives and advocates who live, work and are directly affected by air pollution should help lead to better and long-lasting solutions.

The Community Advisory Council is a Brown Act Committee and consists of 17 community members from across the Bay Area. The councilmembers reflect the diversity of the communities in the Bay Area and the experiences of those living in communities heavily impacted by air pollution. The individuals on the council possess diverse skill sets and a range of relevant knowledge and technical experience.

The Community Advisory Council was created at the request of the community and will provide input on key Air District initiatives. The Air District is working to support racial equity and environmental justice throughout its work under the direction of Veronica Eady, senior deputy executive officer of policy and equity. 

Air District Represents Bay Area at COP26

U.S.Center at COP26

Several Air District representatives attended the United Nations Climate Change Conference, or COP26, in Glasgow, Scotland, which took place from October 31 – November 12. 

During the event, Air District Executive Officer Jack Broadbent and members of the Board of Directors Davina Hurt and John Bauters conducted a series of Twitter Live events throughout the conference. Bay Area residents were invited to join the discussion, ask questions and share their concerns by connecting with the Air District on Twitter and Facebook.

COP26 brought together the world’s leaders to accelerate the implementation of climate protection strategies. This year’s summit was the first five-year checkpoint following the signing of the Paris Agreement, an international treaty on climate change, to gauge progress on the defined targets and expedite action towards its goals.

Participation in COP26 enabled Air District staff to learn about revolutionary technologies and policies being deployed around the world, which can potentially be replicated in the Bay Area. The Air District also shared agency knowledge, successes and strategies that have helped to mitigate climate change at the local level. Equity and environmental justice were lead themes of this year’s conference, and insights gained will also inform the Air District’s work in this area.

Air District's Climate Tech Finance Program Funds Acceleration of Electric Vehicle Adoption

Innovative Clean Air Projects

The Air District has awarded a loan guarantee to EvGateway, an electric vehicle solutions management company focused on accelerating the adoption of electric vehicles by making them easier to use.

EvGateway has developed a software portfolio, which enables operators of electric vehicle chargers to manage and operate their chargers. The software also allows consumers to locate and reserve available chargers, see amenities available at the chargers, view charging rates and pay for their vehicle charging.

The EvGateway network is integrated with all major EV charger manufacturers and operates and maintains vehicle chargers for companies and municipalities including Southern California parks, beaches and the City of Los Angeles.

This loan guarantee is the third project under the Air District’s Climate Tech Finance program.  The core value of the Climate Tech Finance is to support innovative climate projects, and the Air District’s greenhouse gas analysis ensures that new technologies will reduce short- and long-term greenhouse gas emissions.

In partnership with the California Infrastructure and Economic Development Bank and the Northern California Financial Development Corporation, the Climate Tech Finance team led a technology qualification, social equity impact and greenhouse gas analysis that deemed EvGateway eligible for a $2.5 million loan guarantee. This loan guarantee supported EvGateway in securing a line of credit with Farmers & Merchants Bank.

The Climate Tech Finance loan guarantee provides a credit enhancement that supports EvGateway’s installations of DC and AC EV chargers throughout the State of California. The chargers will be installed at hotels and commercial sites from the Bay Area to San Diego. EvGateway’s projects are estimated to reduce 7,000 metric tons of carbon dioxide equivalent emissions per year in California.

Air District Settles Case with Air Liquide

illustration of gavel

Air Liquide Large Industries, US LP, has agreed to pay the Air District $159,000 to settle violations that occurred at its hydrogen plant at the San Francisco Oil Refinery in Rodeo.

This settlement covers seven Notices of Violation issued to the company for non-compliance with air quality regulations at its operations that occurred between 2016 and 2021.

The various types of violations addressed in this settlement include:

  • Isolated and relatively minor emission-related violations
  • An emission excess that persisted after initial efforts to repair it
  • Use of a continuous emission-monitoring system that was not properly certified
  • Minor administrative violations

All the violations that led to this settlement have been corrected.

The Air District issues Notices of Violation when facilities violate a specific air quality regulation or rule. Violators are generally required to respond to the notice within 10 days and submit a description of the actions they will take to correct the problem. These actions can include shutting down certain operations immediately or changing operations or equipment to come into compliance.

All settlement funds will be used to fund Air District activities such as the inspection and enforcement activities that led to this settlement. 

Air District Offers Millions in Grants

Grant Funds Available

The Air District administers a number of grant funding programs that offer incentives for clean air projects.

Grant Funding for Clean Air Projects

Grant programs for Bay Area businesses and public agencies:

  • Heavy-Duty Mobile and Stationary Equipment Replacement and Zero-Emission Infrastructure Program
    Over $60M* in funding is available for eligible projects that reduce toxic air emissions and ozone-forming pollutants through the scrap and replacement of older, high-polluting vehicles and equipment. Eligible project categories include but are not limited to upgrades or replacements of:  
    • Trucks, emergency vehicles, and transportation refrigeration units
    • Transit buses, school buses and shuttles
    • Off-road construction, industrial, and agricultural equipment, for example: dozers, forklifts, tractors, ag pumps, and portable engines
    • Off-road port and freight equipment, including cargo handling equipment and airport ground support equipment
    • Marine vessel engines and locomotives
    • Refueling infrastructure that supports zero-emission vehicles, including battery-electric and hydrogen fuel-cell vehicles
    Applications are being accepted and evaluated on a first-come, first-served basis. At least 50 percent of program funds must be awarded to projects that operate in or that benefit low-income areas and areas that are most highly impacted by air pollution, including the AB 617-identified communities of West Oakland, Richmond-San Pablo, East Oakland/San Leandro, Eastern San Francisco, Pittsburg-Bay Point area, San Jose, Tri-Valley area, and Vallejo. Apply at www.baaqmd.gov/moyer.
    *Funding available is based on the Air District’s current best estimate for availability through mid-2022 and will be updated accordingly as funds are awarded and new funding sources are secured. Projects are funded by the Carl Moyer Program, Community Health Protection Program, Transportation Fund for Clean Air, Mobile Source Incentive Fund, and Funding Agricultural Replacement Measures for Emission Reductions (FARMER) program.
  • Goods Movement Emission Reduction Program (non-truck categories) – Up to $20 million is available for projects that will replace (upgrade) vehicles and equipment used in freight movement activities in California. Eligible equipment include: cargo-handling equipment such as forklifts, yard trucks, and rubber-tired gantry cranes (RTG); transportation refrigeration units (TRU); insulated cold-storage trailers at grocery retail stores; freight locomotives; and shore power systems. Funding is also available for hydrogen fueling/battery-charging infrastructure, and electric power plug to assist owners of freight movement equipment to incorporate zero- or near-zero-emissions equipment into their fleet and for berth electrification and emissions capture and control equipment at ports. Applications are being accepted until March 31, 2022.  www.baaqmd.gov/goods
  • Loan Guarantees and Low-Interest Financing: Climate Tech Finance Program – Subsidized financing is available to support the development and purchase of climate technologies. Companies can apply for loan guarantees of up to 90 percent to grow their business. Public facilities can apply for loans up to $30 million over 30 years. This program is open and accepting applications now.  www.baaqmd.gov/ctf
  • Charge! Program for electric vehicle (EV) charging projects is currently open and accepting applications. Charge! is a grant program that helps offset up to 85 percent of the cost of purchasing and installing new publicly available charging stations at qualifying facilities and private charging stations to serve multi-unit dwelling locations within the Air District’s jurisdiction. A total of $7 million in grant funding is available for organizations, including governments, businesses, and nonprofits. The Air District will prioritize projects that install EV charging at multi-unit dwellings (specifically affordable and below market rate housing sites), and projects located in Environmental Justice communities. Applications are due by March 1, 2022.  www.baaqmd.gov/charge
  • Wildfire Smoke Clean Air Center Incentive Program - Funding for county-level agencies, in coordination with cities and communities, in the San Francisco Bay Area to create a network of clean air centers in vulnerable communities to mitigate the adverse public health impacts due to wildfires and other smoke events. Supported by Assembly Bill 836: Wildfire Smoke Clean Air Center Incentive Program for Vulnerable Populations (Wicks, Chapter 393, Statutes of 2019) is a statewide initiative to establish a network of publicly accessible facilities with high-efficiency air filtration systems for people who may not otherwise have access to clean air during wildfire events. Funding can be used towards:
    • Facility ventilation upgrades
    • Portable air cleaners
    • Air filter replacements
    Applications are being accepted until March 15, 2022. www.baaqmd.gov/cleanaircenters

Grant programs available to Bay Area residents:

  • Passenger Car and Light-Duty Truck Retirement – The Vehicle Buy Back Program pays Bay Area residents $1,200 per vehicle to turn in their operable, registered, model year 1997 and older passenger car or light-duty truck for scrapping.  www.baaqmd.gov/vbb
  • OPEN NOW! Clean Cars for All Program, Light-Duty Vehicle Replacement The Clean Cars for All Program is open to all income-qualified Bay Area residents. The program provides varying incentives (up to $9,500) to retire older, high-polluting vehicles and replace them with newer, cleaner vehicles or with alternative transportation options (e.g. Clipper card).  Eligible vehicles for purchase or lease include hybrid electric, plug-in hybrid, or electric vehicles.  www.baaqmd.gov/cleancarsforall

Other state-wide grant programs funded by Volkswagen NOx Mitigation Trust (only the first is administered by the Bay Area Air District):

  • VW Zero-Emission Freight and Marine Program – The Volkswagen Environmental Mitigation Trust has released $35 million in funding for zero-emission projects, and ~ $14 million has been awarded or reserved for applications under review. That means that ~ $20 million is still available statewide for projects that do one or more of the following:      
    • scrap combustion-based airport ground support equipment and replace with all-electric,
    • scrap combustion-based heavy-lift forklifts (>8,000 lbs of lift capacity) and replace with all-electric,
    • scrap combustion-based port cargo handling equipment and replace with all-electric,
    • scrap combustion-based ferry, tugboat, or towboat engines and replace with all-electric, and/or 
    • install portside shore power systems at berths for use by unregulated oceangoing vessels.
    Applications are being accepted on a first come, first-served basis until March 22, 2022, or until all funds are awarded. At least 75 percent of funding will be awarded to projects that reduce emissions in California’s disadvantaged and low-income communities.https://www.californiavwtrust.org/zero-freight-marine/
  • VW Combustion Freight and Marine Projects – Funding is available statewide to accelerate the replacement of older, higher polluting diesel engines with the cleanest available technologies. Equipment eligible for replacement includes Class 7 and 8 freight trucks (including waste haulers, dump trucks, and concrete mixers) or their engines (2012 model year and older) that are compliant with current regulations; freight switcher locomotives or their engines (pre-Tier 1); and ferry, tugboat, and towboat engines (pre-Tier 3). This solicitation is open and accepting applications on a first-come, first-served basis until all funds are fully allocated. https://xappprod.aqmd.gov/vw/combustion.html
  • VW Zero-Emission Transit and Shuttle Buses – Funding is available to owners of bus fleets that operate in California to support early adoption of zero-emission bus technologies to reduce harmful exposure for the state’s most sensitive populations. This program is administered by the San Joaquin Valley Air Pollution Control District.  The zero-emission school bus bin is now oversubscribed. This solicitation is open and accepting applications for transit and shuttle buses on a first-come, first-served basis. http://vwbusmoney.valleyair.org/

Air District Events

This spring, the Air District and Spare the Air will be participating in the following outreach event.

April

Earth Day SF - San Francisco
April 23

Bay Area Air Quality Management District
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