Final Draft Staff Report with Appendices for 

Proposed Amendments to Rule 4307 

SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

FINAL DRAFT STAFF REPORT

April 21, 2011 

Proposed Amendments to Rule 4307 

(Boilers, Steam Generators, and Process Heaters – 2.0 MMBtu/hr to 5.0 MMBtu/hr) 

Prepared by: Sandra Lowe-Leseth, Air Quality Engineer, Rules 

Reviewed by: Patrick Houlihan, Senior Compliance Inspector, Compliance 

Derek Fukuda, Air Quality Engineer, Permits 

Joven Nazareno, Senior Air Quality Engineer, Rules 

George Heinen, Supervising Air Quality Engineer, Rules 

Errol Villegas, Program Manager, Strategies and Incentives 

Samir Sheikh, Director, Strategies and Incentives 

I. SUMMARY 

A. Reasons for Rule Development and Implementation 

California grows and processes about 80 percent of the world’s almonds and virtually 

100 percent of the almonds consumed in the US. Due to Salmonella outbreaks traced 

to California almonds in 2001 and 2004, the Food and Drug Administration (FDA) has 

imposed pasteurization requirements to reduce the potential for pathogen (bacteria that 

can make humans ill) contamination. The units that are the focus of this rule project are 

used to remove pathogens from the surface of raw almonds without “cooking” or 

otherwise affecting the nuts. 

In October 2008, Paramount Farms, Incorporated, the largest almond processor in the 

US, installed an almond pasteurization unit at its Lost Hills processing facility. The 

unit’s burners, however, do not meet the District Rule 4307 oxides of nitrogen (NOx) 

limit. Paramount Farms asked for and received two one-year variances from the 

District’s Hearing Board. After the second variance hearing, the Rule Development 

Section was asked to research tree nut pasteurizer units and, if warranted, to consider a 

rule amendment incorporating tree nut pasteurizers into Rule 4307. District staff has 

reviewed the available information, visited the facility in question and has determined 

that a rule amendment is appropriate. 

Based on the additional research, District staff has estimated for a facility to install this 

low-NOx technology and comply with the existing rule requirements, the unit would 

achieve an emissions reduction of 0.003 tons of NOx per day, but at a cost 

effectiveness of greater than $250,000 per ton of NOx reduced. This specific situation 

and associated compliance cost was not considered during the last rule amendment. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Draft Staff Report: Rule 4307 (Boilers, Steam Generators, 

and Process Heaters – 2.0 MMBtu/hr to 5.0 MMBtu/hr) April 21, 2011 

2 Final Draft Staff Report with Appendices for 

Proposed Amendments to Rule 4307 

The proposed rule amendments will allow this existing facility to continue meeting the strict 

FDA pasteurization requirements and comply with Rule 4307 requirements. New 

pasteurization units would be evaluated on a case-by-case basis within the context of the 

District’s permitting process. 

B. Description of the Project 

The purpose of this rule project is to amend Rule 4307 to specifically incorporate tree 

nut pasteurizers as a separate type of unit. In addressing these pasteurizers, the 

District is protecting public health by balancing the emissions from this unit and the 

potential health risks associated with un-pasteurized tree nuts. 

C. Rule Development Process 

The proposed rule and final draft staff report will be published and mailed to affected 

sources and interested parties prior to a public hearing to consider the adoption of 

proposed amendments to Rule 4307 by the District Governing Board. 

II. CLIMATE CHANGE 

The California Global Warming Solutions Act of 2006 (AB 32) created a comprehensive, 

multi-year program to reduce greenhouse gas (GHG) emissions in California, with the 

overall goal of restoring emissions to 1990 levels by the year 2020. In the coming 

years, ARB and the Legislature will be developing policies and programs to implement 

AB 32. The District believes that the evidence and the rationale that climate change is 

occurring is compelling and convincing. In addition to the long-term consequences of 

climate change, the District is concerned with the potential ramifications of more 

moderate but imminent changes in weather patterns. The Valley depends heavily on 

agriculture for its economy and has developed agricultural practices based on the last 

several decades of weather patterns. Unanticipated and large fluctuations in these 

patterns could have a devastating effect on the Valley’s economy. 

While there are many win-win strategies that can reduce both GHG and criteria/toxic 

pollutant emissions, when faced with situations that involve tradeoffs between the two, 

District staff believes that the more immediate public health concerns that may arise 

from an increase in criteria or toxic pollutant emissions should take precedence. 

III. BACKGROUND 

In 2001, a major Salmonella outbreak was linked to almonds and ultimately traced back 

to the handler and the grower. In the spring of 2004, a second major Salmonella 

outbreak occurred in Oregon that was linked to raw almonds purchased at a particular 

retailer. As a result of the two Salmonella outbreaks, the FDA now requires that all 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Draft Staff Report: Rule 4307 (Boilers, Steam Generators, 

and Process Heaters – 2.0 MMBtu/hr to 5.0 MMBtu/hr) April 21, 2011 

3 Final Draft Staff Report with Appendices for 

Proposed Amendments to Rule 4307 

almonds be pasteurized before being sold to consumers in North America.1 A number 

of other commonly consumed foods, such as milk, juice, eggs and canned foods are 

pasteurized in order to ensure safety by removing pathogens. 

The almond pasteurization plan became mandatory for the California almond industry 

on September 1, 2007. The FDA, along with a technical review panel comprised of 

almond scientific experts, is responsible for evaluating and approving the treatment 

processes that demonstrate effectiveness in achieving a reduction of possible 

contamination in almonds while not impacting their quality and sensory (e.g., taste and 

texture) attributes.2

Like almond handlers, pistachio handlers will most likely be required to pasteurize their 

product as a direct consequence of a major Salmonella outbreak traced to pistachios in 

2009. It is expected that the pistachio pasteurization provision will be promulgated 

within 12 to 30 months. This means that an additional three to seven tree nut 

pasteurizers could be built in the Valley. Emissions from new units would be evaluated 

on a case-by-case basis and within the context of the District’s New Source Review 

rule. 

IV. CURRENT RULE 4307 AND PROPOSED AMENDMENTS 

A. Current Rule 4307 

Rule 4307 was adopted in December 2005, and it was last amended on October 2008. 

The rule applies to any gaseous fuel or liquid fuel fired boiler, steam generator, or process 

heater with a total rated heat input of at least 2.0 million Btu per hour (MMBtu/hr) up to and 

including 5.0 MMBtu/hr. The current rule limits emission of NOx, carbon monoxide (CO), 

and particulate matter (PM). NOx limits are 30 or 40 parts per million by weight (ppm) 

for gaseous and liquid fuel-fired units, respectively. For new or replacement units, NOx 

is nine or twelve parts per million, depending on the type of unit. CO is limited to 400 

ppm. PM is controlled through fuel selection. Operators may choose PUC-quality 

natural gas, commercial propane, butane, liquefied petroleum gas, or a combination of 

such gases, or other low-sulfur fuel. If the operator chooses a high sulfur fuel, SOx is 

required to be controlled by either 95% or to no more than nine parts per million by volume 

(ppmv). 

For detailed requirements, please refer to current Rule 4307, which is available on the 

District’s website at www.valleyair.org. 

 

1

 Almond Board of California website 

http://www.almondboard.com/FoodProfessionals/Documents/Pasteurization_Sheet%205.22.09.pdf 

2

 Almond Board of California website 

http://www.almondboard.com/FoodProfessionals/Documents/Pasteurization_Sheet%205.22.09.pdf 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Draft Staff Report: Rule 4307 (Boilers, Steam Generators, 

and Process Heaters – 2.0 MMBtu/hr to 5.0 MMBtu/hr) April 21, 2011 

4 Final Draft Staff Report with Appendices for 

Proposed Amendments to Rule 4307 

B. Proposed Amendments to Rule 4307 

1. Section 3.0 – Definitions 

A definition would be added for tree nut pasteurizer. The definition of EPA would be 

modified the standard format for acronyms that puts the spelled-out name in front of the 

acronym. 

2. Section 5.0 – Requirements 

The San Joaquin Valley is home to some of the largest tree nut (almond and pistachio) 

processing operations in the entire nation. To protect consumers, the United States Food 

and Drug Administration (FDA) imposed pathogen reduction requirements for tree nut 

processing operations to reduce the potential for contamination from pathogens such as 

Salmonella. A variety of pathogen reduction measures are employed by tree nut 

processing operations, with the majority of facilities utilizing chemicals, blanching, or 

roasting processes not subject to Rule 4307, and several facilities are utilizing steam 

pasteurization to satisfy FDA requirements. These pasteurizer units are costly, complex 

systems that sometimes include small burners. The Paramount Farms almond 

pasteurizer unit is a two-part unit. The first part uses steam to add moisture to the 

surface of the shelled almonds. The second part of the unit quickly heats the almond 

surface to kill pathogens. 

 

District staff is proposing that tree nut pasteurizers be fired on natural gas as a NOx 

control. This strategy is similar to the requirements imposed on vegetable dehydrators 

in District Rule 4309, a rule that has been approved by EPA into the California State 

Implementation Plan (SIP). During natural gas curtailments, units would either not be 

used or meet the requirements of Section 4.6. Section 4.6 outlines limitations for a unit 

that fires on alternative fuels during natural gas curtailments. As detailed in Section VII 

of this report, imposing a 30 ppm NOx emission limit for the single existing unit affected 

by the rule is extremely expensive because any change to the process triggers a revalidation of the sterilization process. Since the pasteurizer is already operating, the 

requirement can take effect on the date of rule adoption; therefore no commencement 

date is needed for this provision. 

Section 5.4.4 would be modified to clarify that a longer start-up or shutdown duration 

may be approved, if the operator receives approval from the APCO, ARB, and EPA. 

3. Section 6.0 – Administrative Requirements 

The records section would be modified. The operator of a tree nut pasteurizer would be 

required to keep records showing that the unit is being operated and maintained as 

recommended by the pasteurizer’s manufacturer as well as being able to demonstrate 

that the fuel utilized by the unit meets the specifications of PUC quality natural gas. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Draft Staff Report: Rule 4307 (Boilers, Steam Generators, 

and Process Heaters – 2.0 MMBtu/hr to 5.0 MMBtu/hr) April 21, 2011 

5 Final Draft Staff Report with Appendices for 

Proposed Amendments to Rule 4307 

V. IMPACT OF PROPOSED AMENDMENTS ON OTHER DISTRICT 

COMMITMENTS 

A. Impact of Proposed Amendments on District Attainment Strategies 

This rule project is not a control measure in any attainment plan and is not expected to 

reduce or increase emissions from the single existing tree nut pasteurizer. For these 

reasons, District staff has concluded that attainment of any ambient air quality standard 

will not be affected by this rule project. The proposed amendments will not affect either 

the District’s 2007 Ozone Plan or the Districts 2008 PM2.5 Plan (particulate matter with 

aerodynamic diameter of 2.5 micrometers or less) because no emission limits have 

been changed, nor are the amendments expected to affect emissions from this source 

category. 

The federal Clean Air Act (Act) requires that attainment plans meet reasonable further 

progress (RFP) by achieving incremental emission reductions to ensure attainment of 

the National Ambient Air Quality Standards (NAAQS) by the attainment date. The Act 

does not identify specific emission reduction benchmarks that must be met for 

particulate matter attainment plans. EPA has interpreted the Act’s RFP requirement 

using the concept of achieving (generally) linear progress toward the standard. The 

District’s 2008 PM2.5 Plan contains an RFP demonstration. However, the proposed 

amendments do not have emission reductions associated with them, so it is not 

expected that the RFP will be affected by the changes in the rule. 

B. Consideration for the Condensable Fraction of PM2.5 

Certain high-temperature processes emit gaseous pollutants that rapidly condense into 

particle form in the ambient air. After January 1, 2011, areas that are nonattainment for 

the National Ambient Air Quality Standard (NAAQS) for particulate matter that is 2.5 

microns or less in diameter (PM2.5) are to consider the condensable fraction of directly 

emitted PM2.5 for purposes of establishing the emissions limits for: 

• Reasonable Further Progress (RFP), in which an area shows continuous 

reductions of directly emitted PM2.5 and precursors, with sufficient emissions 

reductions to demonstrate attainment by the applicable deadline, and

• Reasonably Available Control Technology (RACT) and Reasonably Available 

Control Measures (RACM), in which a nonattainment area shows that it is 

adopting technologies and measures are reasonably available, considering 

technical and economic feasibility; sufficient to demonstrate expeditious 

attainment; and meet RFP. (reference: 40 CFR 51.1002(c))

 

The District established emissions limits for its attainment, RFP, and RACT/RACM 

demonstrations in the 2008 PM2.5 Plan for the PM2.5 NAAQS as set by EPA in 1997. 

The District continues to evaluate condensable particulates and other directly emitted 

PM2.5 to improve its PM2.5 emissions inventory for future attainment plan efforts. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Draft Staff Report: Rule 4307 (Boilers, Steam Generators, 

and Process Heaters – 2.0 MMBtu/hr to 5.0 MMBtu/hr) April 21, 2011 

6 Final Draft Staff Report with Appendices for 

Proposed Amendments to Rule 4307 

This amendment to Rule 4307 was neither included in, nor does it impede, the 

emissions limits set in the 2008 PM2.5 Plan. The District is not currently aware of 

significant condensable PM2.5 emissions or related condensable PM2.5 emissions 

control technologies for the sources affected by this amendment. Therefore, the District 

has satisfied any applicable requirement to consider condensable particulates from this 

source at this time. 

VI. BASELINE EMISSION INVENTORY AND EMISSION REDUCTIONS 

There is one almond pasteurization unit currently operating that would be affected by 

the amendments. The unit is fired on natural gas and rated at 4.4 MMBtu/hr. There is 

no baseline inventory for this source category. District staff assumed typical 

uncontrolled burners were installed in the pasteurizer. The unit was assumed to 

operate between 5,000 and 8,500 hours per year and the average percent of maximum 

heat input between 70 percent and 90 percent of maximum heat input. District staff 

used 0.092 pounds of NOx per MMBtu as the uncontrolled emission factor. Using these 

assumptions, the estimated uncontrolled emissions from this unit are about 1.0 to 1.5 

tons NOx per year. 

The unit is already firing on natural gas, so there is no change to the unit and by extension, 

no emission reductions associated with the proposed amendments. Additionally, there is 

no increase in emissions to implement this rule; therefore, there is no emission impact for 

this project 

VII. COSTS AND COST EFFECTIVENESS ANALYSIS 

The California Health and Safety Code Section 40920.6(a) requires the District to 

conduct both an absolute cost effectiveness analysis and an incremental cost 

effectiveness analysis of available emission control options before adopting each Best 

Available Retrofit Control Technology (BARCT) rule. The purpose of conducting a cost 

effectiveness analysis is to evaluate the economic reasonableness of the pollution 

control measure or rule. The analysis also serves as a guideline in developing the 

control requirements of a rule. 

Absolute cost effectiveness of a control option is the added annual compliance cost in 

dollars per year divided by the emission reduction achieved in tons VOC reduced per 

year. Incremental cost effectiveness is intended to measure the change in costs, in 

dollars per year, and emissions reductions, in tons of pollutant reduced per year, 

between two progressively more effective control options or technologies. Incremental 

cost effectiveness compares the differences in costs and the differences in emissions 

reductions of the two candidate control options. Incremental cost effectiveness does 

not reveal the emission reduction potential of the control options, merely the additional 

cost of adding the next most effective control to a given control measure. Unlike the 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Draft Staff Report: Rule 4307 (Boilers, Steam Generators, 

and Process Heaters – 2.0 MMBtu/hr to 5.0 MMBtu/hr) April 21, 2011 

7 Final Draft Staff Report with Appendices for 

Proposed Amendments to Rule 4307 

absolute cost effective analysis that identifies the control option with the greatest 

emission reduction; incremental cost effectiveness does not present a meaningful 

correlation between emissions reductions and cost effectiveness. Therefore, the 

relative values produced in the incremental cost effectiveness analysis and the absolute 

cost effectiveness values are not comparable and cannot be evaluated using similar 

standards. 

The pasteurizer at Paramount Farms is already in compliance with the proposed 

provisions of Rule 4307 and therefore, no additional costs to the operator are 

associated with the proposed requirements. Absolute cost effectiveness cannot be 

calculated because there are no associated emission reductions, meaning that the $0 

cost would be divided by zero, which is mathematically undefined. 

The incremental cost effectiveness is the difference in cost between successively more 

effective controls. The next-most stringent option after natural gas firing is to require the 

current unit to replace the current burners with 30 ppm low-NOx burners. Paramount 

Farms submitted cost data for retrofitting their current unit. A theoretical replacement 

unit (which has not been built, nor tested to determine if it would pasteurize to the 

required level of pathogen reduction) would cost $260,000. Because any change to a 

validated sterilization process triggers re-validation under FDA regulations, costs of 

materials and testing for the re-validation of the sterilization process are included as 

one-time retrofit costs. Paramount Farms indicated that the testing and materials for revalidation would be an additional $1.2 million to $5.0 million. Added to the replacement 

cost, the total one-time retrofit costs of $1.46 to $5.26 million. Annualized over 10 years 

at 10% rate of return, the annualized incremental cost is $238,000 to $856,000. 

In order to determine incremental cost effectiveness, an estimate of emission reductions 

from the proposed requirement to the next-most effective control is needed. District 

staff estimated a range of additional NOx reductions for this unit using the same 

assumptions as for the baseline inventory. District staff used 0.092 pounds of NOx per 

MMBtu as the uncontrolled emission factor and 0.036 pounds NOx per MMBtu for the 

controlled emission factor. Using the same range for hours used and percent of 

maximum heat input as for the baseline emissions estimation above, the estimated 

emission reductions are 0.43 tons per year to 0.94 tons per year. The incremental cost 

effectiveness is $252,000 to $908,000 per additional ton of NOx reduced. The 

calculation is shown in Table 1. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Draft Staff Report: Rule 4307 (Boilers, Steam Generators, 

and Process Heaters – 2.0 MMBtu/hr to 5.0 MMBtu/hr) April 21, 2011 

8 Final Draft Staff Report with Appendices for 

Proposed Amendments to Rule 4307 

Table 1 – Incremental Cost Effectiveness Analysis Results 

 

One-time 

Retrofit Cost 

($) 

Annualized 

Cost ($/yr) 

Incremental Cost 

Effectiveness at 

min reductions 

($/add’l ton NOx)

Incremental Cost 

Effectiveness at 

max reductions 

($/add’l ton NOx) 

Total 

(retrofit + re-valid min) $1,460,000 $237,542 $550,886 $252,039

Total 

retrofit + re-valid max) $5,260,000 $855,802 $1,984,699 $908,032

Because the incremental cost is greater than $250,000 per additional ton of NOx 

reduced, District staff has determined that requiring the affected unit be retrofitted with a 

30 ppm burner is not reasonable for the existing unit. 

VIII. SOCIOECONOMIC IMPACT ANALYSIS 

Pursuant to state law, District staff is required to perform a socioeconomic impact 

analysis prior to adoption, amendment, or repeal of a rule that has significant impacts 

on air quality or that will strengthen emission limitations. The proposed amendments to 

Rule 4307 would cost $0 to comply; therefore there is no socioeconomic impact from 

the proposed amendments. 

IX. ENVIRONMENTAL IMPACTS 

Pursuant to the California Environmental Quality Act (CEQA), District staff reviewed the 

possible environmental impacts of the proposed amendments and determined that air 

quality and perhaps greenhouse gas emissions are the only potentially affected 

environmental resources. The proposed amendments do not impose regulatory 

requirements resulting in an increase in fuel combustion, thus implementation of the 

proposed project would neither increase greenhouse gas emissions nor affect criteria 

pollutant emissions. 

 

District staff concludes that there is no substantial evidence in the whole record before 

the District that the proposed amendments to Rule 4307 would cause any adverse 

effects on the environment. The District finds that the project is exempt per the general 

rule that CEQA applies only to projects which have the potential for causing a significant 

effect on the environment (CEQA Guidelines Section 15061(b)(3)). For these reasons, 

staff is proposing to file a Notice of Exemption upon Board adoption of the proposed 

amendments to Rule 4307. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Draft Staff Report: Rule 4307 (Boilers, Steam Generators, 

and Process Heaters – 2.0 MMBtu/hr to 5.0 MMBtu/hr) April 21, 2011 

9 Final Draft Staff Report with Appendices for 

Proposed Amendments to Rule 4307 

X. RULE CONSISTENCY ANALYSIS 

Prior to adopting, amending, or repealing a rule or regulation, California Health and 

Safety Code Section 40727.2 requires a written analysis that identifies and compares 

requirements of the proposed rule with corresponding, existing and proposed District 

rules and corresponding United States Environmental Protection Agency (EPA) rules, 

regulations, and guidelines. Based on the analysis, District staff concludes that the 

proposed amendments to Rule 4307 are consistent with other District rules and are not in 

conflict with these rules. Further, the proposed rule amendments are consistent with EPA 

rules, regulations, and guidelines that apply to the same source category. The analysis is 

presented in Appendix A of the Final Draft Staff Report. 

XI. REFERENCES 

1. U.S. Environmental Protection Agency “Clean Air Fine Particulate 

Implementation Rule” Federal Register Volume 72 pages 20586 – 20667; April 

25, 2007. 

2. U.S. Department of Agriculture/Agricultural Marketing Service “Almonds Grown in 

California: Outgoing Quality Control Requirements” Federal Register Volume 72 

pages 15021 – 15036; March 30, 2007. 

3. Bob Klein, Manager, Administrative Committee for Pistachios, phone 

conversation November 2, 2010. 
SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Draft Staff Report: Rule 4307 (Boilers, Steam Generators, 

and Process Heaters – 2.0 MMBtu/hr to 5.0 MMBtu/hr) April 21, 2011 

10 Final Draft Staff Report with Appendices for 

Proposed Amendments to Rule 4307 

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