Quarterly Meeting November 30, 2016

Agenda Introductions BAAQMD Rule Updates Greenhouse Gas Items Lunch & Member Updates Silicon Valley Advanced Water Purification Center Tour Next Meetings: March 15th (invite to be sent) June 21st with BAAQMD (to be confirmed)

BAAQMD Rule Updates Regulation 2, Rule 5 – proposed amendments: New Source Review of Toxic Air Contaminants Regulation 2, Rule 2 – recent changes: New Source Review Permitting Regulation 11, Rule 18 – proposed regulation: Reduction of Risk from Air Toxic Emissions at Existing Facilities Update on potentially partnering with BAAQMD to develop BMPs for POTW digester gas venting

Greenhouse Gas Related Items Federal GHG Tailoring Rule update CA 2030 Target Scoping Plan Draft Paper SB 1425 – Voluntary Water-Energy Nexus Registry BAAQMD GHG Control Measures for POTWs in draft Clean Air Plan Update

Regulation 2, Rule 5 NSR of TACs Proposed Amendments Impact: Facility cancer risk may increase even though emissions remain the same Incorporates OEHHA’s 2015 Health Risk Assessment Guidelines Incorporates CARB/CAPCOA’s Risk Management Guidelines Revises emission calculation procedures for modified sources (installed before 1987) to match NSR procedure Exemption for ICEs<50 hp (to match Rule 9-8 and other regulations) Risk factors for many TACs +40%; some as much as 5 times May result in about 60 more projects/year requiring TAC control Risk trigger levels remain unchanged (source cancer risk <1/million for TBACT; project cancer risk <10/million) Public Hearing: December 7

Regulation 2, Rule 2 NSR Newly Effective No new amendments (still dated December 2012) EPA recently approved the BAAQMD revised regulations into SIP and made the regulations “effective” Applicable to applications “complete” after 8/31/2016 EPA identified new changes – expect w/in 18 months Now considers: PM-2.5 GHG (under certain conditions) Revised emission calculation methodologies (increase & decrease) Fugitive emissions

DRAFT Regulation 11, Rule 18 Risk Reduction at Existing Facilities Health Risk Assessment (30 days for input) Risk Reduction Plan (180 days to conduct) Risk Reduction Measures (3 years to implement) Phased Implementation based on cancer prioritization number Draft comment letter review

Digester Gas Venting BMPs Update on potentially partnering with BAAQMD to develop BMPs for POTW digester gas venting Call with Brenda scheduled for week of December 5th

Greenhouse Gas Related Items Federal GHG Tailoring Rule update CA 2030 Target Scoping Plan Draft Paper SB 1425 – Voluntary Water-Energy Nexus Registry BAAQMD GHG Control Measures for POTWs in draft Clean Air Plan Update

Federal GHG Tailoring Rule Proposed Revisions Ensure neither PSD or Title V rules require a source to obtain a permit based on GHGs alone Establish “Significant Emission Rate” for GHGs (i.e., 75,000 tons CO2e per year) to determine whether PSD permits are required to contain an emissions limit for GHGs and implement best available control technology (BACT) Focus on large, fossil-fueled combustion units - turbines, boilers, process heaters/furnaces, and stationary IC engines fired with either diesel fuel or natural or process gas Process emissions not considered Posted October 3rd

CARB “2030 Target” Scoping Plan Concept Paper Potential concepts to achieve GHG levels 40% below 1990 levels focused on the Governor’s “5 pillars” Reviewing progress toward meeting GHG targets: Considering GHG inventory improvements (e.g.,adding Natural & Working Lands land-based activities) Supporting collaborative projects Mitigation of upstream GHG sources Input from Environmental Justice Advisory Committee Renewable gas in the transportation/electricity sectors or displace fossil natural gas in the residential/industrial sectors? Pursue policies needed for the 2050 target even without reducing GHG emissions in the near-term?

Additional Policies are Needed to Achieve 2030 and 2050 Targets None of the 2014 California State Agencies' PATHWAYS Project scenarios achieve 2030 target Transportation, electricity, and industrial sectors are the largest emitters = largest opportunities for reductions 4 Concepts: Complementary Policies with Cap-and-Trade Ambitious Complementary Policies without Cap-and-Trade – Focus on Industrial Sources Ambitious Complementary Policies without Cap-and-Trade – Focus on Transportation Complementary Policies with a Carbon Tax

Schedule for Draft “2030 Target” Scoping Plan Update Summer 2016: Scenario development (for achieving targets) Late Summer 2016: EJAC input via community meetings Late Summer/Early fall: Draft Scoping Plan to be released (not yet released) November 17: First Board hearing December 14: Workshop on Carbon Sequestration Modeling Methods and Initial Results for Natural & Working Lands March 2017: Second Board hearing SB 1383 approved by Governor Brown September 19th requires the reduction of short-lived climate pollutants (methane) by 2030 Regulation to be developed & adopted by 2018

SB 1425: Voluntary Water-Energy Nexus Registry Adopted September 2016 CalEPA to oversee development of registry by non-profit Non-profit: The Climate Registry (3-year term) Voluntary registry to account for GHG emissions associated with the “water system” using best available data Establish emissions baselines Encourage voluntary actions to increase energy efficiency and reduce greenhouse gas emissions Recognize, publicize, and promote participants Recruit broad participation Facilitate streamlined data reporting

BAAQMD GHG Control Measures for POTWs Goal of Climate Strategy: Bay Area region to reduce GHG emissions to 80% below 1990 levels by 2050 POTWs represent only 0.5% of the total emissions inventory GHG Control Measures for POTWs: WR1: Limit GHGs from POTWs SS18: Revisions to Air Toxics Hot Spots Program SS21: Biogas Flares SS38: Odors

Silicon Valley Advanced Water Purification Center Tour 4190 Zanker Road, San José, CA 95134 Walking tour Approximately 45 minutes Questions at end

Next Meetings March 15, 2017 Location: TBD Targeting June 21, 2017 with BAAQMD