Locunity/Bay Area Air Quality Management District, CA
The Stationary Source Committee advises and makes recommendations to the Board of Directors relating to the air quality and climate impacts of stationary sources, including indirect sources. The Committee advises and makes recommendations to the Board of Directors regarding all aspects of the Air District’s stationary source programs, including but not limited to the following: permitting, compliance, small business assistance, rule development, California Environmental Quality Act thresholds of significance, and state and federal regulations that affect stationary sources. The Committee advises and makes recommendations to the Board of Directors regarding air quality planning and the development and implementation of State and Federal Air Quality Management Plans, as well as support for regional and local climate planning. This committee reviews and recommends stationary source policies, issues, and programs related to air quality management plans, air quality and economic modeling, permitting, compliance, small business assistance, toxics, source education, rule development, and grants. The committee also advises the Board of Directors on the District’s position on all regulations that affect stationary sources.
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Recent updates from Governing Board
During general public comment, two Earthjustice attorneys urged the Air District to prioritize development of a strong warehouse indirect source rule (ISR) in 2026, modeled on South Coast AQMD's WEAR program but accounting for Bay Area cumulative impacts on environmental justice communities near ports, refineries, and freeways.
Staff presented an update on developing a formal policy for socioeconomic analysis in rulemaking, responding to a proposal from the Contra Costa Building and Construction Trades Council. Areas of alignment with the proposal include contractor qualification checks, expanding analysis by race and gender where data permits, assessing indirect economic impacts, and specific analysis for refinery regulations given the fossil fuel transition. Areas requiring further discussion include applicability of major regulation requirements, potential duplication with existing statutory requirements, availability of facility compliance cost data, and calculating cost flow-through to demographic groups. A draft policy is expected for public review around March 2026 with a 45-day comment period, committee update in July, and board adoption thereafter.
The committee received a detailed staff presentation and held extensive discussion on two options for defining low-income exemptions under Rule 9-6, which requires zero-NOx water heater replacements starting January 2027. Option A would provide exemptions via existing low-income program participation (250% federal poverty guidelines) combined with housing cost burden (28%+ of income to mortgage/taxes). Option B would exempt households earning 80% or less of area median income. Staff recommended Option A as more targeted (18% vs 20% of households exempt). Committee members raised concerns about the adequacy of incentive funding ($38M available vs. $49-83M needed annually), questioned the validity of the $3,496 incremental cost estimate based on old data, expressed worry about equity implications of exempting low-income households from health benefits, and debated implementation timeline. Over 30 public commenters spoke, with a strong majority supporting timely implementation while many also urging stronger incentives over exemptions. No formal vote was taken; staff was directed to bring refined proposals to the full board in May 2026.
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