The Truth About the 2011 Boiler Smog Law
California Health and Safety Code, Section 42402
California Health and Safety Code, Section 42402
6-28-2010
Compliance Overview
The new boiler law which comes into effect January 1st, 2011 is intended to reduce boiler emissions in industrial settings by targeting equipment that is not operating efficiently and/or older equipment that can no longer be maintained to comply with current air quality requirements.
Some equipment that falls outside allowable emissions tolerances may still pass inspection with minor adjustments, or be grandfathered in under certain conditions.
It is clear however that Bay Area Air Quality Management [BAAQM] and the EPA are serious about the January 1st, 2011 deadline and boiler registration date, as the daily penalties can be up to $15,000/day for non-compliance.
This couldn't come at a worse time for industry, given the economy and access to money for potential capital improvement expenditures.
Preperation and Risk Assesment
There are a number of realities facing the government agencies such as BAAQM and that is they are currently underfunded because of state budget shortfalls. Budget shortfalls mean manpower issues to enforce but at the same time tax revenues are down. Internal reports (BAAQM – June 5, 2010 Staff Report) from earlier this month state that the BAAQM will be increasing both permit fees and penalties associated with non compliance. In the end these reports also state that government agencies will be going into their reserves to fund operations (not cut back on people). This could mean more of a compliance focus for the BAAQM but they are still trying to find the best way to manage and enforce such an initiative.
The risk associated with not registering equipment should be carefully considered against the short-term cash outlay to either repair or replace out of compliance boilers. Again, the downside is the exposure to a 'retroactive' (to January 1st, 2011) daily fine of up to $15,000 / day.
Planning
In the best case scenario, systems and equipment can be tuned to pass test requirements. Worst case scenario is that a more comprehensive solution will be required. While system retrofits and/or redesign can favorably impact operating costs and give reasonable break even time frames (3 years or less in many cases), the capital commitment and financing for such projects is a sobering reality to engineering departments with limited budgets.
There are a number of aggressive equipment manufacturers out there offering incentives, discounts, and liberal financing options so exploring options ahead of time is wise. Perhaps the most important part activity is to know prior to the January 1st deadline is:
Some equipment that falls outside allowable emissions tolerances may still pass inspection with minor adjustments, or be grandfathered in under certain conditions.
It is clear however that Bay Area Air Quality Management [BAAQM] and the EPA are serious about the January 1st, 2011 deadline and boiler registration date, as the daily penalties can be up to $15,000/day for non-compliance.
This couldn't come at a worse time for industry, given the economy and access to money for potential capital improvement expenditures.
Preperation and Risk Assesment
There are a number of realities facing the government agencies such as BAAQM and that is they are currently underfunded because of state budget shortfalls. Budget shortfalls mean manpower issues to enforce but at the same time tax revenues are down. Internal reports (BAAQM – June 5, 2010 Staff Report) from earlier this month state that the BAAQM will be increasing both permit fees and penalties associated with non compliance. In the end these reports also state that government agencies will be going into their reserves to fund operations (not cut back on people). This could mean more of a compliance focus for the BAAQM but they are still trying to find the best way to manage and enforce such an initiative.
The risk associated with not registering equipment should be carefully considered against the short-term cash outlay to either repair or replace out of compliance boilers. Again, the downside is the exposure to a 'retroactive' (to January 1st, 2011) daily fine of up to $15,000 / day.
Planning
In the best case scenario, systems and equipment can be tuned to pass test requirements. Worst case scenario is that a more comprehensive solution will be required. While system retrofits and/or redesign can favorably impact operating costs and give reasonable break even time frames (3 years or less in many cases), the capital commitment and financing for such projects is a sobering reality to engineering departments with limited budgets.
There are a number of aggressive equipment manufacturers out there offering incentives, discounts, and liberal financing options so exploring options ahead of time is wise. Perhaps the most important part activity is to know prior to the January 1st deadline is:
- • Does your equipments emission comply with the new standards?
- • What would the penalties be if found not to be in compliance?
- • What types of remedial actions can be taken?
- • What options are available if a replacement is required?
- • Can the overall system design be improved if boiler replacement is necessary?