Section 95397 - Approval of Exemptions(a)Exemption Criteria. The owner or operator of facility with a refrigeration system may request the Executive Officer for an exemption from the requirements of section 95386 and section 95387. To request an exemption, the applicant must follow the application procedure specified in subsection 95397(b), and must demonstrate that the criteria for one or more of the three exemptions allowed by this section have been satisfied. Information submitted pursuant to this section shall be handled in accordance with the provision of section 95394. The Executive Officer may approve the following exemptions: (1)Emissions Lifecycle Exemption. The Executive Officer may allow the continuation of a refrigerant leak for a specified time period of no longer than three years if the Executive Officer determines that the applicant has provided clear and convincing documentation that the refrigerant leak cannot be repaired and that allowing the refrigerant leak to continue will result in less combined direct and indirect emissions than replacing the leaking refrigeration system. The documentation must include information quantifying the lifecycle direct emissions and indirect emissions, including energy use, and must include a calculation of these emissions based on the average lifetime of the refrigeration system or facility. The applicant must also provide a mitigation plan that includes a list of proposed actions to minimize emissions. The plan must include an analysis of options to minimize usage, reduce leaks or venting, and recycle or destroy high-GWP refrigerant.(2)Economic Hardship Exemption. The Executive Officer may allow the continuation of a refrigerant leak for a specified time period of no longer than three years if the Executive Officer determines that the applicant has provided clear and convincing documentation that all of the following criteria are met: (A) Compliance would result in extraordinary economic hardship, such as closure of the entire facility or a large portion of the facility, or loss of a large portion of the revenue from the facility; and(B) The applicant has prepared a compliance report that can be implemented and will achieve compliance as expeditiously as possible. The compliance report must reasonably detail when compliance will be achieved and the method by which compliance will be achieved.(3)Natural Disaster Exemption. The Executive Officer may allow the continuation of a refrigerant leak for a specified time period of no longer than three years if the Executive Officer determines that the applicant has provided clear and convincing documentation that failure to satisfy the conditions set forth in this subarticle was due to a natural disaster such as an earthquake or flood, an act of war or an act by a public enemy, or a civil disorder or riot.(4) Any exemption granted pursuant to subsection 95397(a)(1), (a)(2), or (a)(3) may be extended for one or more additional periods of up to three years if the Executive Officer determines that the demonstration made pursuant to 95397(a)(1), (a)(2), or (a)(3) remains valid.(b)Application for Exemptions.(1) To apply for an exemption the applicant must submit a written application demonstrating that the criteria have been met for one or more of the three exemptions specified in subsection (a).(2) Within 30 days of receipt of the exemption application the Executive Officer shall determine whether the application is complete, and shall notify the applicant of this determination.(3) If the exemption application is determined to be incomplete, the Executive Officer shall notify the applicant and specify the specific information needed to make the application complete.(4) Within 90 days after an application is determined to be complete, the Executive Officer shall determine whether and under what conditions an exemption will be permitted. The applicant and the Executive Officer may mutually agree to a longer time period for reaching a decision. During the review period, the Executive Officer may request, and the applicant shall provide, such additional information that is reasonably necessary to the decision. The applicant may also on his or her own initiative submit additional supporting documentation before a decision has been reached. The Executive Officer shall notify the applicant of the decision in writing and shall specify such terms and conditions as are necessary to insure that emissions will be minimized, and that the criteria specified in subsection (a) will continue to be met. Such conditions may include, but are not limited to, a requirement that best management practices be followed or that the applicant must implement the mitigation plan submitted by the applicant or mitigation measures identified by the Executive Officer.(c) The exemption shall cease to be effective upon the failure of the person to whom the exemption was granted to comply with any term or condition of the exemption.(d)Revocation or Modification of An Exemption. If the Executive Officer determines that an exemption no longer meets the criteria specified in subsection (a) of this section, the Executive Officer may revoke or modify the exemption as necessary to insure that the exemption continues to meet the criteria.(e)Effect of Denial or Revocation of an Exemption. Except as provided below in subsections (e)(1) and (e)(2), if an applicant for an exemption is denied, or an existing exemption is revoked, within 14 days of a notice of such denial or revocation the refrigerant leak must be repaired, or within 30 days of a notice of such denial or revocation the owner or operator of the facility must prepare a retrofit or retirement plan in accordance with subsection 95387(a)(2). The plan must establish a schedule to retrofit or retire a leaking refrigeration system no later than six months after a notice of denial or revocation, and all work must be completed during this six-month period. (1) The time requirements for refrigerant leak repair under subsection (b), (c), or (d) of section 95386 remain applicable and are not reduced if an exemption is denied, or an existing exemption is revoked.(2) The time requirements for the preparation and implementation of a retrofit or retirement plan under subsection (a) of section 95387 remain applicable and are not reduced if an exemption is denied, or an existing exemption is revoked.Cal. Code Regs. Tit. 17, § 95397
1. New section filed 10-20-2010; operative 11-19-2010 (Register 2010, No. 43). Note: Authority cited: Sections 38501, 38510, 38560, 38562, 38563, 38580, 38597, 39600, 39601 and 41511, Health and Safety Code. Reference: Sections 38501, 38505, 38510, 38560, 38562, 38563, 38580, 38597, 39600, 39601 and 41511, Health and Safety Code.
1. New section filed 10-20-2010; operative 11-19-2010 (Register 2010, No. 43).