BOARD MEETING DATE: June 2, 2006 AGENDA NO. 33 

PROPOSAL: Adopt Proposed Rule 223 – Emission Reduction Permits for Large 

Confined Animal Facilities. 

SYNOPSIS: The proposed rule establishes the permitting and other 

requirements for large confined animal facilities, as defined by 

California Air Resources Board (CARB), in California Health and 

Safety Code as a result of the enactment of Senate Bill 700. The 

permit for large confined animal facilities must include a plan to 

reduce emissions to the maximum extent feasible and the plan is to 

be updated annually. 

COMMITTEE: Stationary Source, March 31, 2006, Reviewed 

RECOMMENDED ACTION: 

Adopt the attached resolution: 

1. Adopting Rule 223 – Emission Reduction Permits for Large Confined Animal 

Facilities; and 

2. Certifying the Notice of Exemption (NOE) from the California Environmental 

Quality Act (CEQA) for Proposed Rule 223. 

Barry R. Wallerstein, D.Env. 

Executive Officer 

EC:LT:LMB:RP:SH:mm 

___________________________________________________________________________________________________________________ 

Background 

Senate Bill 700 was signed into law on September 22, 2003 and became effective as of 

January 1, 2004. One provision of the bill, codified in California Health & Safety Code 

Section 40724.6, requires that local air pollution control and air management districts 

shall, not later than July 1, 2006, adopt, implement, and submit for inclusion in the state 

implementation plan, a rule or regulation that requires the owner or operator of a Large 

Confined Animal Facility (LCAF), as defined by California Air Resources Board 

(CARB), to obtain a permit from the district to reduce, to the extent feasible, emissions 
of air contaminants from the facility. Staff has developed Proposed Rule 223 to satisfy 

these requirements. 

Summary of Proposed Adoption 

Proposed Rule 223 was developed to satisfy the requirement that all LCAFs have 

permits that seek to minimize their emissions. In accordance with California Health & 

Safety Code Section 40724.6, Proposed Rule 223 requires that the owner or operator of 

LCAF submit an application for a permit that includes: 

(i) The information that the Executive Officer, or his designee, determines is 

necessary to prepare an emissions inventory of all regulated air pollutants 

emitted from the operation, including, but not limited to, precursor and fugitive 

emissions, using emission factors approved by CARB in a public hearing; and 

(ii) List of all equipment and the regulating District rules; and 

(iii) List of all other sources of air pollution, including but not limited to animals, 

birds, and lagoons; and 

(iv) Total capacity of the facility in terms of animal and bird population; and 

(v) An emissions mitigation plan that demonstrates that the facility will use Best 

Available Retrofit Control Technology (BARCT) to reduce emissions of 

pollutants that contribute to the non-attainment of any ambient air quality 

standard, and that are within the District’s regulatory authority. 

Proposed Rule 223 requires that all LCAFs apply for and obtain a permit that includes a 

mitigation plan that the LCAF will implement to reduce its emissions. 

Staff believes that the above requirements in Proposed Rule 223, including the 

emissions mitigation plan, will further reduce emissions from LCAFs. 

Under other provisions of SB 700, confined animal facilities (CAFs) under AQMD 

jurisdiction with annual emissions of half the major source threshold (5 tons/year) are 

already required to have an operating permit from the AQMD. Based on the current 

emission factors, LCAFs are a subset of those CAFs. Therefore, operators of LCAFs 

that have already applied for or have received an operating CAF permit on or before 

June 02, 2006, from the AQMD satisfy the information requirements of the Proposed 

Rule. Staff estimates that there are 55 dairies and 4 egg ranches in the AQMD that are 

LCAF operations. 

Under Proposed Rule 223, applications to obtain a permit shall include an emissions 

mitigation plan to implement BARCT. The proposed rule requires compliance with 

BARCT but does not mandate any specific measure. District staff believes that the dust 

and emission control mitigation requirements in District Rules 403 – Fugitive Dust; 
403.1 – Supplemental Fugitive Dust Control Requirements for Coachella Valley 

Sources; 1127 – Emission Reductions from Livestock Waste; and 1186 – PM10 

Emissions from Paved and Unpaved Roads and Livestock Operations, satisfy most of 

the BARCT requirements for dairy and some portions of the poultry operations. In 

addition, Appendix A of Proposed Rule 223 contains a list of the Proposed Emission 

Mitigation Measures that staff is proposing for operators of LCAFs to implement in 

order to satisfy BARCT requirements, and also to mitigate other emissions. The list of 

control measures included in Appendix A is largely based on the control measures list 

originally developed by the Dairy Permitting Advisory Group, which was tasked with 

identifying and recommending emissions mitigation measures for the San Joaquin 

Valley Air Pollution Control District and was comprised of representatives from the 

local District, dairy industry, academia, environmental organizations, and other 

stakeholders. The control measures list was further refined by AQMD staff for the 

South Coast District in consultation with and general agreement of stakeholders, 

including Western United Dairymen, Milk Producers Council, Inland Empire 

Poultrymen, Inc. and Pacific Egg and Poultry Association. Operators of LCAFs will be 

required to choose mitigation measures from the list of Proposed Emission Mitigation 

Measures shown in the tables in Appendix A. 

District staff will continue to jointly work with the stakeholders to further develop and 

update BARCT and other control measures for both dairy and poultry operations. 

Permits that have been issued will be updated through annual renewal, in accordance 

with District Rule 204, to add conditions that reflect BARCT. Operators of LCAFs 

shall implement new or modified emission mitigation measures on a schedule approved 

by the Executive Officer. 

In order to comply with California Health & Safety Code Section 40724.6(d)(4) 

noticing requirements, it is expected that permits already issued to LCAFs will be 

reissued and made available for public review and comments for 30 days prior to 

reissuance. For any, current, new or modified permit, staff will post a notice and the 

proposed permit on the District website and at the District headquarters for public 

review for 30 days. Staff will review the proposed permit with the applicant prior to 

posting. Based on the comments received, District staff may modify the permit, as 

necessary. 

Issues 

Although most of the issues have been addressed, the industry remains concerned about 

the accuracy of the currently approved emission factors. Staff will continue to work 

with all stakeholders in developing revisions to the emission factors, if there is new 

scientific evidence that would warrant such revisions. For determination of emissions 

fees, an operator has the alternative of demonstrating factors more representative of 

their emissions. 
During the public notice period, staff received two additional comments. One was that 

the Agricultural Waste Management Field Handbook is not the proper document to use 

as a reference for mitigation measures. The correct document is the California Field 

Office Technical Guide, and the staff proposal has been revised to reflect this. This 

revision does not significantly change the meaning of the proposed rule nor constitute 

significant new information. The second comment had to do with the combination of 

feed and silage measures in one of the tables in Appendix A. Staff will continue to 

work with stakeholders to track and evaluate any new evolving scientific evidence to 

ensure that BARCT and BACM continue to be implemented based on the latest 

scientific evidence and research. An off-ramp is included in Appendix A that allows for 

the approval of alternate mitigation measures. 

CEQA Analysis 

Pursuant to the California Environmental Quality Act (CEQA), the SCAQMD is the 

Lead Agency and has reviewed the proposed project pursuant to CEQA Guidelines 

§15002 (k)(1). Because the proposed project will not require major modifications at 

existing facilities to comply and no daily operational emission increases are anticipated, 

it can been seen with certainty that there is no possibility that the proposed project in 

question has the potential to have a significant adverse effect on the environment. Thus, 

the proposed project is exempt from CEQA pursuant to CEQA Guidelines §15061(b)(3) 

- Review for Exemption. A Notice of Exemption has been prepared pursuant to CEQA 

Guidelines §15062 - Notice of Exemption. The Notice of Exemption will be filed with 

the county clerks of Los Angeles, Orange, Riverside and San Bernardino counties 

immediately following the adoption of the proposed project. 

The Notice of Exemption is attached to this Board Letter. 

Socioeconomic Impacts 

PR 223 requires LCAF to obtain permits from the AQMD, provide emission inventory 

and emission mitigation plans along with their annual updates to the AQMD, and keep 

records of animal counts at facilities. There are 55 dairies (NAICS 112120—dairy 

cattle and milk production) and four egg ranches (NAICS 112310—chicken egg 

production) affected by the proposed rule. The 55 dairies are also subject to Rule 

1127—Emission Reductions from Livestock Waste—which has requirements for dairies 

similar to those in PR 223. Therefore, there is no additional cost for the 55 dairies 

under PR 223. 

Three of the four egg ranches are located in Riverside County and the remaining one is 

in San Bernardino County. The four ranches have already filed permits under Rule 203. 

Based on field visits, these ranches have been implementing control measures to 

mitigate potential emissions. As such, there would be no additional cost associated with 

control measures that would be identified in their initial emission mitigation plans. 
In conclusion, PAR 223 would not result in cost impact at this time. 

AQMP and Legal Mandates 

The California Health and Safety Code requires the AQMD to adopt an Air Quality 

Management Plan (AQMP) to meet state and federal ambient air quality standards in the 

South Coast Air Basin. In addition, the California Health and Safety Code requires that 

the AQMD adopt rules and regulations that carry out the objectives of the AQMP. 

Furthermore, California Health & Safety Code establishes permitting requirements for 

LCAFs. California Health and Safety Code authorizes the AQMD to adopt a fee 

schedule to cover the reasonable cost of permitting, planning, enforcement and 

monitoring. 

Resource Impacts 

PR 223 requirements can be accommodated within the current staffing levels. 

Attachments 

A. Rule Development Process 

B. Key Contacts 

C. Resolution 

D. Rule Language 

E. Staff Report 

F. CEQA – Notice of Exemption 
ATTACHMENT A 

RULE DEVELOPMENT PROCESS

Proposed Rule 223 

SB 700 Working Group Meeting 

January 18, 2006 

Public Workshop 

March 28, 2006

Set Hearing 

May 5, 2006 

Public Hearing 

June 2, 2006 

Total Time Spent in Rule Development: 6 Months 
ATTACHMENT B 

KEY CONTACTS

Proposed Rule 223 

Alan Lee 

Avanti Environmental 

Alene M. Taber 

Jackson, DeMarco & 

Peckenpaugh 

Andrew Steckel 

U.S. EPA 

Brent Newell 

Center on Race, Poverty 

& the Environment 

Bruce Scott 

Scott Bros. Dairy Farm 

Cynthia L. Cory 

California Farm Bureau 

Debbie Murdoch 

Pacific Egg & Poultry 

Association 

Don Bell 

UCR Co-op Extension, 

Aviary Div. 

Don Brown 

Norco Ranch 

Douglas R. Kuney 

UCR-Riverside Ext. 

Jim Reifkert 

Kallisto Greenhouses 

John Billheimer 

Enviro-Reality 

John E. Demler 

Demler Egg Ranch 

Joseph Hower 

Environ 

Julia A. Lester 

Environ 

Kathy Nakase 

OC Farm Bureau 

Kathy Reifkert 

Kallisto Greenhouses 

Kevin Clutter 

PEPA 

Laura Blank 

LA County Farm 

Bureau 

Lucinda Roth 

San Joaquin Valley 

APCD 

Nathan De Boom 

Milk Producers Council 

Patricia Van Dam 

National Dairy Board 

Patrick Gaffney 

CARB 

Paul Martin 

Western United 

Dairymen 

Paul Sousa 

Western United 

Dairymen 

Rachael R. Scott 

SBC Farm Bureau 

Steven A. Pastor 

Riverside County Farm 

Bureau 

Tony Andreoni 

CARB 

Will Harrison 

Sunrise Growers 

William Van Dam 

California Milk 

Producers Council 

Wilma Dreessen 

ENSR Intl. 
ATTACHMENT C 

RESOLUTION

A Resolution of the Governing Board of the South Coast Air Quality 

Management District (AQMD) certifying that proposed adoption of Proposed Rule 

223 – Emission Reduction Permits for Large Confined Animal Facilities is exempt 

from the requirements of the California Environmental Quality Act (CEQA). 

A Resolution of the Governing Board of the AQMD adopting Proposed Rule 

223 – Emission Reduction Permits for Large Confined Animal Facilities. 

WHEREAS, the AQMD staff reviewed the proposed project and determined 

that it is exempt from the requirements of CEQA; and 

WHEREAS, the AQMD Governing Board obtains its authority to adopt, amend, 

or repeal rules and regulations from Sections 40000, 40506, 40510, 40702, 40725 

through 40728, and 40724.6 of the California Health and Safety Code; and 

WHEREAS, the AQMD Governing Board has determined that a need exists to 

adopt Rule 223 – Emission Reduction Permits for Large Confined Animal Facilities, to 

provide a permit processing rule for agricultural sources required to comply with the 

permit issuance requirements mandated by California Health & Safety Code Section 

40724.6; and 

WHEREAS, the AQMD Governing Board has determined that Proposed Rule 

223 – Emission Reduction Permits for Large Confined Animal Facilities, as proposed to 

be adopted is written or displayed so that its meaning can be easily understood by the 

persons directly affected by it; and 

WHEREAS, the AQMD Governing Board has determined that Proposed Rule 

223 – Emission Reduction Permits for Large Confined Animal Facilities, as proposed to 

be adopted is in harmony with, and not in conflict with or contradictory to, existing 

statutes, court decisions, or state or federal regulations; and 

WHEREAS, the AQMD Governing Board has determined that Proposed Rule 

223 – Emission Reduction Permits for Large Confined Animal Facilities, as proposed to 

be adopted, does not impose the same requirements as any existing state or federal 
regulation and is necessary and proper to execute the power and duties granted to, and 

imposed upon, the AQMD; and 

WHEREAS, a public hearing has been properly noticed in accordance with the 

provisions of Health and Safety Code Section 40725; and 

WHEREAS, the AQMD Governing Board has held a public hearing in 

accordance with all provisions of law; and 

WHEREAS, the AQMD Governing Board, in adopting this rule, references the 

following statutes which the AQMD hereby implements, interprets, or makes specific: 

Health and Safety Code Sections 39011.5, 40522, 42301, and 40724.6; and 

WHEREAS, the AQMD Governing Board finds and determines, taking into 

consideration the factors in § (d)(4)(D) of the Governing Board Procedures, that the 

modifications adopted which have been made to PR 223 – Emission Reduction Permits 

for Large Confined Animal Facilities, since notice of public hearing was published do 

not significantly change the meaning of the proposed rule within the meaning of 

California Health & Safety Code § 40726 and would not constitute significant new 

information requiring recirculation of the Draft CEQA document pursuant to CEQA 

Guidelines § 15088.5; and 

WHEREAS, the AQMD Governing Board has determined that the 

socioeconomic impact assessment of Proposed Rule 223 – Emission Reduction Permits 

for Large Confined Animal Facilities, as proposed to be adopted, is consistent with the 

March 17, 1989 Board Socioeconomic Resolution for rule adoption; and 

WHEREAS, the AQMD Governing Board specifies the manager of Proposed 

Rule 223 – Emission Reduction Permits for Large Confined Animal Facilities, as 

proposed to be adopted, as the custodian of the documents or other material which 

constitute the record of proceedings upon which the adoption of this proposed rule 

adoption is based, which are located at the South Coast Air Quality Management 

District, 21865 Copley Drive, Diamond Bar, California; and 

NOW, THEREFORE, BE IT RESOLVED, that the AQMD Governing Board 

does hereby certify the Notice of Exemption for Rule 223 – Emission Reduction 

Permits for Large Confined Animal Facilities, as proposed to be adopted, completed in 

compliance with state CEQA Guidelines Sections 15002(k)(1), 15061(b)(1), and 15273, 

and that it was presented to the Governing Board, whose members reviewed, 

considered, and approved the information therein before acting on Rule 223 as proposed 

to be adopted; and 
BE IT FURTHER RESOLVED, that the AQMD Governing Board does hereby 

approve the Socioeconomic Impact Assessment; and 

BE IT FURTHER RESOLVED that the AQMD Governing Board hereby 

directs staff to continue to work with stakeholders for further developing more accurate 

emission factors based on research and scientific data and to update the emission factors 

as and when more reliable data is available, and 

BE IT FURTHER RESOLVED, that the AQMD Governing Board does hereby 

adopt Rule 223 – Emission Reduction Permits for Large Confined Animal Facilities, 

pursuant to the authority by law, as set forth in the attached and incorporated herein by 

this reference. 

DATE: _________________________ CLERK OF THE BOARD
ATTACHMENT D 

RULE LANGUAGE