2 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES o zone emission s and bring Imperial County into compliance with the California Ambient Air Quality Standards (CAAQS) for Ozone by the earliest practicable date.

O n December 03, 2009 (74 FR 63309) the U.S. EPA published is final ruling finding that

the I mperial County attained the 8

- hour NAAQS for ozone. The determination by the

U.S. EPA was based upon three years of certified ambient air monitoring data supporting the finding that the Imperial County reached attainment of the 8

- hour ozone
NAAQS as demon strated by complete, quality

- assured ambient air monitoring data for

the 2006

- 2008 year period. Because this determination suspends certain planning requirements and to comply with SIP submittal requirements, the Imperial County is required to submit for U.S. EPA approval a n “ 8

- hour Ozone Air Quality Modified Plan ”

. The “8

- hour Ozone Air Quality Modified Plan” will include RACT SIP determination of which the newly proposed and amend rules are part of.

II. DISCUSSION OF LEGAL REQUIREMENTS

A. Required Elements a nd Findings

Before adopting, amending or appealing any rule or regulation the Governing Board of the ICAPCD is required to make specific findings of necessity, authority, clarity, consistency, non

- duplication, and reference as per California Health and Safety Code §40727 (H&S Code) . The ICAPCD is also required to hold a public meeting after the rule or regulation has been properly noticed ( H&S Code §40725). Relevant information supporting each of these findings and the propriety of the notice for the pu blic hearing is presented below.

State (CA) Findings Required for Adoption of Rules & Regulations:

FINDING DEFINITION REFERENCE
Authority A district shall adopt rules and regulations and do such acts as may be necessary or proper to execute the powers and duties granted to, and imposed upon, the district by this division and other statutory provisions. The ICAPCD has authority pursuant to California

H&S Code §40702 to adopt, amend or repeal rules and regulations. Adopting a new rule is required to

be in conformity with the language of the C ontrol

T echnology G uidance (CTG) , or other EPA accepted document, pursuant to the requirements
found in the CAA §182(f). Necessity The ICAPCD has demonstrated a need for

rule adoption and/or rule amendments

and/ or repeal. This rule is necessary to satisfy the Ozone SIP commitment, and the State requirement for the application of RACT for all existing sources ( H&S Code §40918(a)). It is also needed to satisfy the federal requirement to submit RACT rules to

USEPA for all major stationary sources of NOx (42 U.S.C. §7511a(f), CCA §182(f)). Clarity The rule s are written or displayed so that

their meaning can easily be understood by the persons directly affected by it Rules 116, 400.1 and 400.2 are generally applicable to facilit ies engaged in operating Boilers, Process Heaters, and Steam Generators of 5 million British Thermal Units (Btu) and S tationary
Gas T urbines of 1 Mega Watt’s capacity or larger. Amended Rules 424, 425 and 427 are applicable

to sources involved in a utomotive refinishing, architectural and aerospace coatings. The sources affected by Rule s 116, 400.1, 400.2 and amended rules 424, 425, and 427 are already familiar with the terminology and requirements, so they should3 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES have no difficulty understanding th e proposed new

rule s and amended rules. Consistency Th ese rule s are in harmony with, and not in conflict with or contradictory to, existing statutes, court decisions, or State or federal regulations

. The adoption of the newly proposed new rule s and

the am endment of the existing rules are required to be in conformity with the language of the applicable CTG, or other document accepted by EPA.

Non

- Duplication These rules do not impose the same requirements as existing State or federal regulation, unless the ICAPCD finds that the requirements are necessary and proper to execute the powers and duties

gra nted to, and imposed upon, the
ICAPCD The newly proposed rule s and the amended rules

do not impose requirements that duplicate existing laws or regulations.

Reference Any statute, court decision, or other provision of law that the ICAPCD implements, interprets, or makes specific by adopting, amending, or repealing a regulation. The proposed new Rule s 116, 400.1, 400.2 and the amended rules 424, 425, and 427 are a specific response to the requirements of 42 U.S.C.§7511a(f), ( CAA §182(f)).

B. Federal Elements

A RACT analysis conducted by the ICAPCD identified a nonconformance issue with federal RACT requirements. The RACT analysis identified a need to address a discoverable deficiency in NOx regulation in Imperial County

. The RACT analysis clearly stat ed a need for the adoption of additional regulation to cover the deficiency. On January 26, 2009 this RACT analysis was submitted to the U.S. EPA for review and comment. While the ICAPCD continues to address comments received by the U.S.

EPA much of the work to finalize the RACT SIP is dependent on the adoption of new NOx rules which would cover the identified deficiency. Essentially, t he RACT SIP which is necessary for the adoption and approval of a n “ 8

- hour Ozone Air Quality Modified

Plan ” was found deficie nt because it did not conform to RACT requirements.

Submission of the new ly proposed Rule s 116, 400.1 , 400.2 and the amended Rules 424, 425, and 427 are n ecessary to correct not only the identified deficiency of

insufficient NOx regulation but to generally conform with federal RACT requirements. The newly proposed Rules, 116, 400.1 and 400.2 as well as the amended Rule 424, 425, and 427 are subject to all the requirements of a SIP submittal. Any document which is submitted as pa rt of the SIP is required to conform to certain requirements as

set forth in the CAA and the regulations promulgated there under. SIP submittals are required to undergo proper public notice and hearing (42 U.S.C. §7410(a)(2), 7410(l),

CAA §110(a)(2), 110(l ); 40 CFR 51.102(d), 51 Appendix V

, 2.1(f) & (h)). Such submittals must also have been adopted pursuant to proper authority and follow all appropriate state laws or other requirements for the adoption of the particular document (40 CFR 51.230

- 231, 51, Appe ndix V, 2.1(c) & (e)).

The newly proposed Rule s 116, 400.1 , 400.2 and the amended Rules 424, 425 and 427 will be properly adopted and are to be considered a SIP submittal. A discussion of the required elements follows:4 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES ELEMENT ACTION REFERENCE

Public Notice &
Comment: Public Notice of the Adoption Hearing was published on December 23, 2009. Both the Air Resources Board and Environmental Protection Agency (Region 9)

s taff have responded with written comments regarding

the newly proposed rules and amendments

. Availability of

Document Throughout this process the ICAPCD has consulted

with the affected sources during the development of

the RACT limits and with the establishment of the applicability of this rule at three separate meetings (October 27, 2008, February 19, 2009, and March 16, 2009). The newly proposed rules 116, 4001., 400.2 and amended rules 424, 425 and 427 and associated appendix’s and staff reports were made available to the public at a Public Workshop held on Dec ember

16 th , 2009

.

Notice to Specified

Entities Copies of the newly proposed Rules were sent to
CARB and the U.S. EPA on February 13, 2009.

Public Hearing A public hearing for January 26 th , 2010 was set by the Governing Board on December 23, 2009

Legal Authority to Adopt and Implement the

Document The ICAPCD has authority pursuant to H& S Code §40702 to adopt, amend or repeal rules and regulations. Applicable State

Laws and Regulations were

followed Public notice and hearing procedures are followed pursuant

to H& S Code §40725 through §40728.

III. NEWLY PROPOSED AND AMENDED RULES

A. RULE 116

– EMISSIONS STATEMENT AND CERTIFICATION

The Federal Clean Air Act (CAA) requires states designated as ozone non

- attainment

areas to gather Emission Statement data from sources of volatile organic compounds (VOC) and oxides of nitrogen (NOx) beginning in 1992 (reporting in 1993). These two air contaminants react in the presence of sunlight to form ozone in the lower atmosphere, the troposphere, where it affects human health. Carbon monoxide by itself affects human health and elevated levels tend to occur primarily in the winter months. Emission Statements are intended to help the state in their reporting and analysis of emissions into the ambient air. All emission estimates reported on Emission Statements

will be used to track the state’s progress toward meeting the mandatory emission

re duction targets specified as a percentage reduction from the 2006 base year inventory. This tracking will help to monitor the progress that areas make toward

attainment of the ozone and carbon monoxide NAAQS and will be used as an indicator

to measure the state’s progress in maintaining a healthy environment. The CAA also requires the state to periodically compile and report a comprehensive, accurate, and current inventory of all air contaminant sources in the state.5 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES 1. Newly Proposed Rule 116 Summary

The proposed rule will require owners and/ or operators of st ationary sources emitting VOC or NOx emissions to p rovide the ICAPCD with an annual statement of actual

emissions of these pollutants. The annual statement is due by December 31 of each year to th e U.S. EPA. The ICAPCD is required to submit this information to the California Air Resources Board (CARB) for review with final submittal to the U.S. EPA by December 31 of each preceding year. The Emission s Statement will be based on the information provided in the Emissions Data Forms which may be an emission calculated by the ICAPCD or emissions information provided directly by the source

which will be subject to ICAPCD approval. An emissions statement wi ll be required for

all sources within the jurisdictional area of the ICAPCD which emit 25 tons per year or

more of VOC and/ or NOx.

The proposed rule provides an exemption for sources emitting less than 25 tons per year of either VOC or NOx. In order for the exemption to comply with the federal regulations referred to above, the ICAPCD must provide the CARB with an emissions inventory of sources within the District emitting ten (10) tons or more per year of either

VOC or NOx.

2. Rule 116 Socioeconomic Impact

The provisions of Section 40728.5 of the California H&S Code, requiring an assessment of the socioeconomic impacts of the adoptio n, amendment, or repeal of any d istrict rule or regulation does not apply to the ICAPCD per 40728.5 (c) as follows:

This section shall not apply to any district with a population of less than 500,000

persons.

B. NEWLY PROPOSED RULE 400.1 STATIONARY GAS TURBINES

Rule 400.1 is being developed to address the implementation of federal RACT. This rule will require stationary gas turbine operators to comply with newly proposed RACT NOx standards. Essentially, Rule 400.1 imposes RACT upon any unit with a rated heat input capacity of 1 Megawatt (MW) or more. The rule further establishes new NOx limits of 42 parts per million by vol ume (ppmv) for gaseous fuel

- fired units and 65 ppmv liquid fuel

fired units. The proposed rule does not require the use of emission control technologies which might degrade or endanger the environment. Rule 400.1 RACT limits can normally be achieved by a ppropriate combustion technology modifications and/or by water/steam injection technologies for turbines. Once adopted and implemented, Rule 400.1 will affect emission units at four Imperial County major source facilities. These facilities already

substa ntially comply with the specified thresholds imposed upon by this rule, so no significant changes in current Authority to Construct or Permit to Operate conditions are anticipated.

The ICAPCD conducted a survey of stationary gas turbines to determine the NOx emission reductions resulting from the implementation of Rule 400.1. Since, all existing emission units affected by Rule 400.1 will be able to comply without additional installation6 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES of technology a substantial change, resulting from the implementation of this rule, in the emissions inventory for these facilities is not anticipated.

In addition to satisfying federal RACT, the adoption of the newly proposed Rule 400.1 would satisfy several specific State and federal requirements. The Calif ornia H& S Code requires those areas designated as moderate nonattainment for the State ozone standard and above to require RACT for all existing major stationary sources which have the potential to emit 25 tons per year of any non

- attainment pollutant or its

pr ecursors (H&S Code §40918(a)). As such the ICAPCD is subject to this requirement

because of its area designation for the State ozone standard.

1. Newly Proposed Rule 400.1 Summary

The following is a general discussion of the proposed Rule 400.1 Stationary Gas

Turbines.

Applicability: This section gives a brief overview regarding the purpose and type of sources to which this rule will apply. In addition, this section eliminates duplicity of thresholds and administrative requirements applicable to emission unit s.

Definitions: This section defines 7 terms used in the rule. The terms applicable to this

rule will be d efined and included in Rule 101, Definitions.

Requirements: The rule establishes new NOx limits of 42 ppmv for gaseous fuel

- fired units and 65 ppmv liquid fuel

- fired units at 15% oxygen on a dry basis.

Exemptions: T he Stationary Gas Turbine rule exempts the follow ing : Stationary G as T urbine(s) engines or their components when operated exclusively for research, development or testing (except for source testing) or which operate less than 400 hours per calendar year. Also exempt for no more than 15 minutes are simple cycle Stationary

Gas Turbine(s) during startup, shutdown or a change in load, when bringing the

combustion process up to operating levels. T wo (2) hours for combined cycle and cogeneration cycle Stationary Gas Turbine(s), or as specified on the permit to operate;

Section C.1 .b of the Stationary Gas Turbine rule shall not apply to a Stationary Gas Turbine(s) when forced to burn nongaseous fuel during times of natural gas curtailment. This exemption shall not exceed 168 cumulative hours of operation per calendar year excluding equipment testing time not exceeding 24 hours per calendar year.

Recordkeeping Requirements: A unit

- specific operating log is required with minimum specified data on the turbine and the emission control equipment. District approved monitoring equipment fo r data collection is required. All persons subject to the rule must keep records as specified in this section. For the purposes of a compliance determination based on CEMS data, the averaging period to calculate NOx emissions

concentration shall be one clo ck hour.

Test Methods: T est meth ods are identified with which to verify compliance with provisions of the rule.7 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES Source test Requirements: R equired source testing is generally required at a 90% power rating however under certain conditions testing may be allowed at the highest achievable continuous power rating

. Demonstration of c ompliance is required no less

than o nce every 12 months , however the frequency of compliance testing may be

extended under certain circumstances to not less than every 36 mont hs for Stationary Gas Turbine(s) which operate less than 100 hours per 12 month period and which emit less than 5 tons of NOx per 12 month period or to not less than every five (5) years for secondary fuel testing. This period may be extended if a source c an prove no operational fuel has been fired. Test reports shall include the operational characteristics recommended by the manufacturer to ensure compliance with the applicable emission limits of this rule. For the purposes of a compliance determination ba sed on source testing, the NOx emission concentration shall be calculated as an average of three test

runs. A source test plan is required a t least 30 days prior to the scheduled source test

and a t least seven days prior to the source test, the owner or o perator is required to notify the APCO of the exact date and time of the source test. Final source test results are to be submitted 60 days after the completion of the actual source test to the APCO.

Records Retention: Records are required to be maintaine d for two (2) calendar years or five (5) calendar years for Title V facilities. These records shall be maintained on the premises and made available to the ICAPCD upon request.

2. Technical Discussion

a. Project Description

The purpose of this Rule is to limit the emission of oxides of nitrogen from stationary gas turbines. This rule applies to stationary gas turbines of 1 megawatt (MW) and larger unless the equipment is exempt from this rule pursuant to Section D of this rul e. The proposed Rule establishes, for the ICAPCD, general federal RACT emissions limits for equipment within this source category.

b. Control Methodologies

The proposed Rule 400.1 is intended to control NOx emissions from stationary gas

turbines. The follo wing text is a discussion of the types of control technologies which generally constitute RACT for this source category.

c. Combustion Design

Oxides of nitrogen are generated by the combustion of fossil fuels. Oxidation of fuel bound nitrogen (fuel NOx ) and oxidation of nitrogen in the ambient air (thermal NOx) are the two origins of oxides of nitrogen emissions from the combustion process. Fuel NOx is a function of the fuel formulation and emissions can potentially be reduced by hydro treating the fuel at the refinery.

Thermal NOx generation is a function of flame temperature and residence time. Combustion strategies for controlling NOx emissions are based upon lowering the combustor temperature. Methods generally available include water/steam injecti on and8 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES low

- NOx combustor designs, depending on the specific turbine model. NOx emissions resulting from either fuel or thermal NOx formation mechanisms can be further controlled by using post combustion technologies such as SCR. Fuel switching, using

metha nol rather than natural gas or liquid fuels, is sometimes available but generally not

cost

- effective as the price of methanol fuel is typically three times that of natural gas.

d. Water/Steam Injection

The addition of a diluent in the combustor quenches the flame and absorbs heat, thereby reducing the combustion temperature, the thermal efficiency and consequently lowering the amount of NOx produced. A by

- product of water or steam injection is usually an increase in power output. In most cases, the use of st eam or water diluents results in exhaust gas concentration of 42 ppmv NOx or less when firing on natural gas. Oil fired units typically achieve an exhaust gas concentration of NOx of 65 ppmv or less. This technology is considered by ICAPCD to be federal RA CT for this source category of equipment. This technology can meet the requirements of this proposed rule for

many gas

- fired and oil

- fired turbines.

Water and/or steam injection is achieved by injecting the quenching medium through

the unused alternative fuel ports of the turbine. Therefore, any turbine that can be retrofitted must be duel fuel capable.

e. Dry Low

- NOx Combustors

Low NOx combustors have, to date, been designed for many, but not all, gas turbines.

Manufacturers have concerned themselves with only the most popular turbine models and may never develop low NOx technology for their older or unusual models of turbines. Conventional combustors in turbines are diffusion controlled. That is, the fuel and air are injected separately, resulting in hot

- spots which produce excessive NOx. In contrast, dry low

- NOx combustors generally operate in a premixed mode where the reaction rate is limited more by the chemical reaction rate rather than mixing rates, which results in a maximized flame temperature and a better controlled air/fuel ratio. The more efficient combustion at lower temperatures produces fewer oxides of nitrogen emissions. This technology can meet the requirements of this proposed rule for many

gas

- fired and oil

- fired turbines.

f. Add

- On Control Equipment

Selective Catalytic Reduction (SCR)

SCR is a post combustion control technology. In the SCR process, ammonia is injected into the exhaust gas stream where it reduces the NOx to molecular nitrogen, when in the presence of a catalyst. The catalyst operates usually between 600

- 750oF and is made of a noble metal, titanium dioxide, vanadium, zeolite or other material. SCR systems are capable of over 90 percent NOx removal and may be used in conjunction with steam or water injection technology.9 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES g. Selective Non

- Catalytic Reduction (SNCR)

SNCR is an alternative to SCR as a post combustion technology which does not use a catalyst. Rather, a higher temperature over 1400oF is used to a ctivate the reaction. A reducing agent, such as ammonia or urea, is injected into the exhaust gas stream to reduce the NOx to molecular nitrogen. To date, no known turbine has employed this method of NOx control in the Imperial County. Reduction efficienc y ranges between 50 and 80 percent with SNCR.

3. Cost and Cost Effectiveness

Rule 400.1 is being developed to address the implementation of federal RACT. This rule will require stationary gas turbine operators to comply with newly proposed RACT

NOx standar ds. The rule further establishes new NOx limits of 42 ppmv for gaseous

fuel

- fired units and 65 ppmv for liquid fuel

- fired units. The proposed rule does not require the use of emission control technologies which might degrade or endanger the

environment. The Rule 400.1 RACT limits can normally be achieved by appropriate combustion technology modifications and/or by water/steam injection technologies for turbines. The ICAPCD conducted a survey of stationary gas turbines to determine the

NOx emission redu ctions resulting from the implementation of Rule 400.1. This rule will affect seven stationary gas turbines at four Imperial County major source facilities. The ICAPCD has identified the facilities under permit for this source category as owned by

the Im perial Irrigation District (IID). These facilities are located in Brawley, El Centro,

and in Niland.

The IID, El Centro Generation Station, Unit 2

- Turbine, was repowered in 1993. This unit was installed with a Selective Catalytic Reduction (SCR) contr ol device and is able to comply with a NOx emission limit of 9 ppmv when operating with natural gas and 13 ppmv when operating under diesel fuel. In addition, in 2008, the IID, Niland Generation Station, installed two stationary gas turbines. These units are also equipped with SCR technology and are able to comply with a NOx emission limit of 2.5 ppmv. These turbines are only authorized to burn natural gas. Without the installation of additional technology, these emission units are currently in compliance with Rule 400.1 emission limits. Therefore, no substantial change in the emissions inventory for these facilities due to implementation of this rule is anticipated.

The IID, Brawley Generation Station, operates two turbines that were installed in 1962 and do not have installed NOx emission control equipment. These units will be exempted from compliance with Rule 400.1 NOx emissions limits by restricting operation to no more than 400 hours per calendar year.

The IID, Rockwood Generation Station, oper ates two turbines that were installed in 1979 and have installed water injection for NOx emission control. These units are currently in compliance with Rule 400.1 NOx emissions limits of 42 ppmv for natural gas and 65

ppmv for diesel fuel. An analysis was conducted to evaluate cost effectiveness to retrofit these turbines with a SCR system to further reduce NOx emissions to 9 ppmv for natural gas and 15 ppmv for diesel fuel. A detailed cost effectiveness evaluation is included in10 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES Appendix A (see attach ment), of this report. There is no federal policy that establishes maximum cost effectiveness values for NOx RACT. For the purpose of this evaluation, the APCD recommends a RACT cost effectiveness value of $8,000

- $10,000/ton of NOx. The total initial cost (capital cost and installation) for retrofitting the Rockwood turbines with a SCR system is approximately $4,400,000. In addition, the estimated annual operating cost for each turbine is $276,803. Therefore, the estimated cost effec tiveness for Unit 1 when burning natural gas is $61,731 per ton of NOx reduced, while the estimated cost effectiveness for both units when burning diesel fuel is $44,839 per ton of

NOx reduced. This evaluation indicates that the cost effectiveness to retr ofit the Rockwood turbines with a SCR system is way higher than the recommended RACT cost effectiveness value of $8,000

- $10,000/ton of NOx. Therefore, retrofitting of these turbines with more efficient technology to reduce NOx emission would not be cost ef fective.

4. Environmental A nalysis

As per the California Environmental Quality Act (CEQA) Guidelines section 15187 requiring an environmental analysis where by reasonably foreseeable methods for compliance with the rule are discussed. The newly proposed Ru le 400.1 does not require the use of emission control technologies which might degrade or endanger the environment. The general federal RACT emissions limits can normally be achieved by appropriate combustion technology modifications and/or by water/steam injection technologies for modern turbines.

The RACT emissions limits do not require the use of SCR or selective non

- catalytic reduction (SNCR) technologies. Therefore, any impact from the use of these technologies is avoided.

C. NEWLY PROPOSED R ULE 400.2 BOILERS

, PROCESS HEATERS, AND

STEAM GENERATORS

Rule 400.2 is being developed to address the implementation of federal RACT on Boilers, Process Heaters and Steam Generators. The rule will require certain operators to modify their equipment to achieve newl y proposed RACT NOx standards. Essentially, Rule 400.2 applies RACT to any unit with a rated heat input capacity of 5 million British thermal units per hour (MMBtu/hr) or more. The rule further establishes new NOx limits of 30 ppmv (0.036 lb/MMBtu) for g aseous fuel

- fired units and 40 ppmv (0.052 lb/MMBtu) for liquid fuel

- fired units. The 30 ppmv gaseous

- fuel limit is generally achievable via

combustion controls such as low

- NOx burners, oxygen control, staged combustion, and flue gas recirculation. The 4 0 ppmv non

- gaseous fuel limit is achievable using combustion controls and low nitrogen content "clean" fuels, or by using post

- combustion controls. Once implemented, Rule 400.2 will affect several industries and businesses in Imperial County including som e of our major source facilities. Based on the calculations detailed in Appendix B (see attachment), the potential NOx emissions reductions for Rule 400.2 total 143.3 tons per year. Please see Appendix B (see attachment), of this report

for further detai ls.11 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES 1. Summary of Major Components of Rule 400.2

As per U.S. EPA guidance, the emission limits as proposed in Rule 400.2 are considered

RACT as demonstrated in the determinations for other districts in California. Rule 400.2 establishes the following NOx emission limitations for units over 5 million Btu/hr rated heat input:

Fuel Type NOx lb/MMbtu NOx ppmv @ 3% O2

Gaseous 0.036 30 Liquid 0.052 40

In addition, Rule 400.2 established an alternative NOx emission limit of 70 ppmv for those emission units with an annual capacity factor of 30 % or less. The annual capacity factor is the ratio of the amount of fuel burned by an emission unit in a calendar year to the amount it could have burned if it had operated all year around; in o ther words, it represents 30 % of the potential annual fuel consumption for the emission unit. This alternative emission threshold has been established for those peaking or seasonal emission units for which installation of advanced control technology would not have a significant impact in reducing NOx emissions due to irregular operation of the emission

unit.

The rule also contains an alternative NOx threshold for biomass boilers equivalent to

1 20 ppmv at 12% CO2 or, as an alternative, biomass boilers w ill be required to reduce

NOx emissions at a minimum of 80 percent of the uncontrolled NOx emission concentration in the exhaust gas stream.

T he rule includes monitoring and recordkeeping to insure compliance. New and existing

emission Units that do not require modification to comply with the rule shall be in full compliance upon adoption of the rule. However, for existing sources not in compliance with Rule 400.2 limits, a compliance schedule, incorporated in section I, allows sources to ease into compli ance at a later date. The compliance schedule for units that require equipment modification is as follows:

By June 30, 2010 submit a complete application for an Authority to Construct for all

modifications to non

- exempted emission units.

By June 30, 201 1, be in full compliance with the requirements of the rule.

2. Background

Boilers, Process Heaters, or Steam Generators are closed vessels in which water is heated and where steam is generated or superheated, or any combination thereof, under

pressure or va cuum by the application of heat from the combustion of fuels. Process

heaters are closed vessels where heat is tr ansferred to fluids, process st eam or other material. Boilers, steam generators and process heaters have no direct contact between the produc ts of combustion and the material to be heated.12 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES NOx forms during the combustion of fuel, and other products of combustion are emitted to the atmosphere in the flue gas stream. The formation of NOx resulting from the combustion processes is governed prima rily by the chemically

- bound nitrogen content of the fuel, the oxygen concentration of the flame, the temperature of the flame, and the length of time the combustion gases are held at the flame temperature.

3. Current Operations and NOx Emissions Control

An Imperial County Air Pollution Control District (ICAPCD) survey identified approximately 6 units rated 5 million Btu per hour or greater as operating at three of Imperial County’s major source facilities which will be affected by the requirements of

Rule 400.2. The survey also identified how each source would comply with the requirements, for example one of the boilers operated by the Imperial Irrigation District (IID) at the El Centro Generating Facility is equipped with a Selective Catalytic

Reduction (SCR) unit and is currently in compliance with the alternative compliance threshold; this boiler operates irregularly throughout the year and fuel usage w ill be

limited to a maximum of 30 %; a second boiler operated by IID has been scheduled for

shutdown a nd emission reductions will be used to offset emissions for a new re

powering project which will be in full compliance with the standards. Another facility, Spreckels Sugar Company has indicated that its three natural gas boilers will be

retrofitted in or der to comply with 400.2 requirements. In addition, one of the natural gas process heaters operated by United States Gypsum Company will be retrofitted with a low NOx Burner in order to comply with RACT standards. The ICAPCD staff evaluated potential NOx reductions from retrofitting of these boilers to comply with Rule 400.2 requirements. Based on the calculations detailed in Appendix B (see attachment), the potential NOx emissions reductions for Rule 400.2 total 143.3 tons per year. The ICAPCD survey has not identified any existing boilers or process heaters operated at minor sources that may be out of compliance with the proposed RACT standards.

Existing boilers, steam generators, and process heaters within the Imperial County are generally fired using natural gas and/or fuel oil (distillate, residual, and crude oil)

. However, t he ICAPCD survey has identified three solid fueled boilers operating at separated major facilities in the Imperial County. The Spreckels Sugar coal boiler was

installed in 1947. Due to the design of this ancient boiler, retrofitting is technologically not feasible. The alternative to retrofitting is replacement, this boiler would need to be replaced by a newer unit which would be cost prohibited for the facility. Therefore,

Rul e 400.2 includes an exemption for coal fired boilers installed before December 31,

2009

.

In addition, the APCD survey has identified two facilities operat ing biomass boilers (wood chips and manure). The two biomass boilers were permitted under the New S ource Review (NSR) Rule which requires the application of Best Available Control Technology (BACT) for new and modified emission units. These boilers are both equipped with an ammonia injection system (SNCR), staged combustion, and oxygen controller to control

the emissions of NOx. Per U.S. EPA recommendation, the Imperial County APCD

reviewed the RACT limits for biomass boilers included in Placer County APCD, Rule 233, Biomass Boilers. This rule limits NOx emissions from biomass boilers to 115 ppmv, corrected to 12% CO 2

. The APCD survey indicates that one of the biomass13 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES boilers will not be able to fully comply with th e 115 ppm limit

. The current NOx emission

limit for this boiler is 1 20 ppmv, 12% CO 2 (60 lb/hr). According to the 2009 source test report for this boiler , a 5 ppmv difference in the NOx limit represent s emission of approximately 2.3 lb/hr of NOx. Due to this facility currently operating with BACT for

NOx and the target NOx reduction difference being minimal

, retrofitting of this boiler with a more sophist icated NOx control system would not be feasible nor cost effective. Therefore, Rule 400.2 will limit NOx emissions from biomass boilers to 1 20 ppmv at
12% CO2

, or as an alternative, biomass boilers will be required to reduce uncontrolled

NOx emission conce ntrations in the exhaust to a minimum 80%.

4. Newly Proposed Rule 400.2

– Summary

The following is a general discussion of the proposed Rule 400. 2 Boilers, Process

Heaters and Steam Generators

.

Applicability: This section provides a brief overview regarding the purpose and type of sources to which this rule would apply. In addition, this section eliminates duplicity of thresholds and administrative requirements applicable to emission units.

Definitions : Terms applicable to this rule are defined in Rule 101

- Definitions

.

Requirements: General federal NOx RACT emission limits for the ICAPCD is 3 0 ppmv or 0.036 pounds per million Btu of heat input when operated on gaseous fuels; 40 ppmv or 0.052 pounds per million Btu of heat input when operated on l iquid fuels. In addition, this rule provides an alternative compliance threshold for those emission units with an Annual Capacity Factor (ACF) less than or equal to 30 % which shall not emit NOx in excess of 70 ppmv for gaseous or liquid fuel. This section also contains an alternative NOx threshold for biomass boilers equivalent to 1 20 ppmv at 12% CO2 or, as an alternative, biomass boilers will be required to reduce NOx emissions at a minimum of 80 percent of the uncontrolled NOx emission concentration in th e exhaust gas stream. A corresponding controlled limit shall be established in the Authority to Construct/Permit to Operate condition(s) for the purpose of demonstrating continuous compliance with the 80 percent emission reduction.

Exemptions: W aste heat recovery boilers that are used to recover heat from the exhaust of Gas Turbines or Internal Combustion Engines; Furnaces, Kilns, and any combustion equipment where the material being heated is in direct contact with the products of combustion; Th ermal Oxidizers and associated waste heat recovery equipment; Boilers, Process Heaters and Steam Generators used exclusively in connection with a structure that is designed for and used exclusively as a dwelling for not more than four families;

coal fired units installed or erected prior to December 31, 2009. Startup or Shutdown may not exceed twelve hours of more than 40 MM Btu per/hr or six hours of equal or less than 40 MM Btu per/hr or as specified on the permit to operate. For non gaseous fuels, this e xemption shall not exceed 168 cumulative hours of operation excluding testing equipment time that do not exceed 24 hours per calendar year.

Monitoring and Recordkeeping Requirements : A unit

- specific operating log is required with minimum specified data o n the turbine and the emission control equipment. District14 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES approved monitoring equipment for data collection is required. Compliance testing data shall be provided to the district on an annual basis. All persons subject to the rule must keep records as spe cified in this section. Any facility claiming an exemption status must keep records with which to document the claimed exempt status.

Test Methods: This section specifies test methods with which to verify compliance with provisions of the rule.

Source Test Requirements: Any required source testing shall be performed at no less than 80% of the power rating. Stationary Gas Turbine(s) subject to the requirements of section C, shall demonstrate compliance through emission compliance testing not less

than once every 12 months. The frequency of compliance testing may be extended to not less than every 36 months for Stationary Gas Turbine(s) which operate less than 100 hours per 12 month period (as demonstrated by operational logs) and which emit

less than 5 tons of NOx per 12 month period. The frequency of compliance testing may be extended to not less than every five (5) years for secondary fuel testing. This period may be extended if a source can prove no operational fuel has been fired. Test reports

shall include the operational characteristics recommended by the manufacturer to ensure compliance with the applicable emission limits of this rule. For the purposes of a compliance determination based on source testing, the NOx emission concentration

shall be calculated as an average of three test runs. At least 60 days prior to the scheduled source test date, the owner or operator of a unit subject to this rule shall submit a source test plan to the Air Pollution Control Officer (APCO). At least seven days pr ior to the source test, the owner or operator shall notify the APCO of the exact

date and time of the source test. A final source test result shall be submitted to the APCO within 30 days following the actual source test date.

Records Retention:

The own er or operator of Boilers, Process Heaters, or Steam Generators subject to this rule shall maintain all records required by this rule for a minimum of two (2) calendar years. Title V facilities shall maintain these records for five (5) calendar years. Th ese records shall be maintained on the premises and made available to the ICAPCD upon
request.

Compliance Schedule: According to 40 CFR, Section 51.912(a)(3), the ICAPCD can allow up to 30 months after the RACT SIP due date for source compliance with the provisions of this rule. Therefore, in order to provide a period of time to make the necessary upgrades or modifications to emission units not in compliance with this rule, Rule 400.2 allows for an alternative compliance schedule. Emission units not in compliance with the thresholds in Section C shall demonstrate full compliance with all applicable standards and requirements of this rule no later than June 30, 2011. On or before June 30, 2010, an owner or operator shall submit for approval by the APCO, a n Authority to Construct (ATC)/Permit to Operate (PTO) application amendment.15 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES 5. Control Technologies

For most applications reducing NOx emissions from Boilers, Process Heaters, and Steam Generators can be broken down into four methods. These are: (1) retrofit low NOx emitting burners, (2) retrofit flue gas recirculation systems (3) installation of ammonia or urea injection systems for se lective noncatalytic reduction, and (4) installation of ammonia or urea injection systems along with catalytic reactors for selective catalytic reduction.

a. Low NOx Burners

Low NOx burners employ low excess air combustion, air staging, fuel staging or

comb ustion product recirculation to lower NOx formation in the flame. Low excess air combustion and combustion product recirculation decrease the oxygen available for NOx formation. Combustion product recirculation also lowers the bulk flame temperature, and consequently lowers the NOx formation rate and equilibrium concentration. Staged air burners lower available oxygen at points in the combustion chamber where the temperature is high. Staged fuel burners lower the temperature at points in the combustion chamber where available oxygen is high. Installation of low NOx burners on existing units may require derating of equipment, because flame lengths may be significantly increased.

Low NOx burners are applicable to most gas fired and oil fired units. For gas fired units, the control effectiveness ranges from 10 to 55 percent. For units fired with conventional fuel oils or crude oil the anticipated reduction will be lower due to the effects of chemically bound nitrogen in the fuel. It is likely that Low N Ox burners using staged combustion and O2 control can achieve the gas

- fire standards contained in the rule. However, it is anticipated most liquid fuel fired units will require low nitrogen content

"clean fuels" and Low NOx burners and other controls to c omply with the emission limitation of the proposed rule.

b. Flue Gas Recirculation (FGR)

FGR for NOx control consists of extracting a portion of the flue gas from the economizer outlet and returning it to the furnace, admitting the flue gas through the furnace windbox. Flue gas recirculation lowers the bulk furnace gas temperature and reduces

oxygen con centration in the combustion zone. A retrofit installation of FGR consists of adding a fan, duct work, dampers, and controls as well as possibly having to increase existing fan horsepower due to increased draft loss. FGR is an effective control technique for gas fired units, but FGR is not effective at reducing NOx formation originating from fuel

- bound nitrogen. The control effectiveness of flue gas recirculation ranges from 60 to 70 percent for gas fired units. For units fired with conventional fuel

oil s or crude oil the anticipated reduction will be lower due to the effects of chemically bound nitrogen in the fuel.16 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES c. Selective Catalytic Reduction (SCR)

SCR is a process that chemically reduces NOx with ammonia (NH 3 ) over a heterogeneous catalyst in the presence of oxygen (O 2 ). The process is termed selective because the reducing agent ammonia (NH 3 ) preferentially attacks NOx rather

than O 2 . However, the O 2 enhances the reaction and is a necessary part of the reaction scheme. Thus, SCR is potential ly applicable to flue gas under oxidizing conditions, greater than one percent O 2

.

SCR retrofit requires a reactor, which contains the catalytic material, and an ammonia storage and injection system. Due to the increased pressure drop across the reactor, some increase in boiler fan horsepower, or possibly a new fan may be necessary.

d. Selective Non

- Catalytic Reduction (SNCR)

SNCR processes for NOx control have been developed by several companies using ammonia and urea as reagents. These non

- catalytic redu ction processes are based on the gas phase homogeneous reaction between NOx in the flue gas and the reagents utilized by the process.

In general, ammonia (NH 3 ) or urea based reagent is injected into the hot flue gas by

means of either air or steam carrier gas at a point in the flue specifically selected to provide optimum reaction temperature and residence time. In the temperature range of

1600 **°** F to 2200 **°** F, the reaction occurs through the injection of these reagents. Hydrogen can also be injected along w ith ammonia to extend the effectiveness range of

the DeNOx reaction down to 1300 **°** F.

NOx reductions of up to 90 percent have been demonstrated on an oil field steam generator where favorable process conditions exist. The SNCR performance using

earlier tec hnology ranges from 50 to 70 percent reduction for most oil fired and gas fired process heaters and steam boilers.

6. Cost and Cost Effectiveness

The cost of retrofitting units with NOx control systems to comply with the proposed rule varies with the size of the unit and type of controls used. IC APCD staff analyzed the cost effectiveness of Rule 400.2 based on installing and operating a low

- NOx burner and flue gas recirculation system because this is the control technology that will most likely be used by local industry to comply with this rule. The purpose of the evaluation is to

determine the cost effectiveness for retrofitting boilers and to determine the operational capacity factor for which the applicable technology may not be cost effective for seasonal units. A detailed cost effectiveness evaluation is included in Appendix C (see attachment), of this report.

There is no federal policy that establishes maximum cost effectiveness values for NOx RACT. The San Joaquin Valley APCD uses a BARCT threshold of $9,700.00 (California Air Resources Board (CARB), Report to the Legislature, Implications of Future Oxides of Nitrogen Controls from Seasonal Sources in the San Joaquin Valley, Ja nuary 2002, Table17 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES 9, Comparison of BARCT Cost Effectiveness Thresholds). For the purpose of this evaluation, the ICAPCD will use a RACT cost effectiveness value of $8,000

- $10,000/ton of NOx. The cost of control equipment is highly dependent on the size o f the unit and the type of control selected. According to the ICAPCD survey, the majority of the boilers that will be impacted by Rule 400.2 are in the range of 50

- 200 MMBtu/hour. Therefore, the

cost effectiveness evaluation was conducted for several siz e boilers ranging from 50 to 200 MMBtu/hour and capacity factors ranging from 10% to 75%.

The total initial cost (capital cost and installation) for a low NOx burner and flue gas recirculation system for boilers 50 to 200 MMBtu/hr ran ges from $401,000 to $732,000. To estimate cost effectiveness, ICAPCD staff obtained capital cost estimates of a low NOx burner with flue gas recirculation system from Jeff Welton and Pete Santner, R.F. MacDonald Company. According to Pete Santner (e

- mail message on December 3, 2009), boilers with capacity 50

- 200 MMBtu/hr would need to be retrofit with a combination

of low

- NOx burner and flue gas recirculation system in order to reduce NOx emissions to a minimum of 30 ppmv for gaseous fuel

- fired units. The average cost effect iveness ranges from approximately $6,470 to $48,580 per ton of NOx reduced. The high end of the cost effectiveness range is due to low annual heat input of boilers. This evaluation

indicates that it is cost effective to retrofit boilers to low

- NOx burner a nd flue gas recirculation but only for those units operating under an annual capacity factor above

30 %. Therefore, Rule 400.2 will establish an alternative NOx emission limit of 70 ppmv for those existing emission units wit h an annual capacity factor of 30 % or less.

The ICAPCD staff conducted a survey of the permit database to identify the number of boilers which will need to be retrofitted to comply with the new RACT requirements. The ICAPCD survey indicates that one of the boilers (Unit 4) operated by the IID at the El Centro Generating Facility and three of the natural gas boilers operated by the Spreckels Sugar Company would be out of compliance with the 30 ppmv emission limit

wi th current NOx control technology. The Unit 4 boiler is currently equipped with SCR and the Spreckels Sugar Company has indicated that its natural gas boilers will be

retrofitted with Flue Gas Recirculation technology. However, this level of NOx control technology will not be sufficient to reduce NOx emissions to the 30 ppmv limit; it is anticipated that a 70 ppmv NOx limit would be feasible to achieve with the current and proposed technology for these units. The ICAPCD staff evaluated cost effe ctiveness for retrofitting the Spreckels Sugar boilers and the El Centro Generating Facility Unit 4 boiler to meet the 30 ppmv limit, a detailed cost effectiveness evaluation for these boilers is included in Appendix C (see attachment), Section II.b. This evaluation indicates that due to the seasonal nature of operation of the Spreckels Sugar natural gas boilers the cost effectiveness ranges between $16,200 and $773,570 per ton of NOx reduced and the El Centro Generating Unit 4 boiler cost effectiveness va lue is $18,330 per ton of NOx reduced. This evaluation indicates that the cost for retrofitting these boilers is higher than the recommended cost effectiveness value. Therefore, these emission units will be restricted to 70 ppmv NOx and maximum annual ca pacity

factor of 30 %.

It is important to point out that any new boilers to existing units will need to comply with BACT requirements; therefore, these units will be required to install more efficient18 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES technology to reduce NOx emission s , hence the capital a nd operational cost will be higher.

7. Environmental Ana ly sis

As with Rule 400.1 the CEQA Guidelines section 15187 requires the ICAPCD to conduct an environmental analysis where by reasonably foreseeable methods for compliance with the rule are discussed. The newly proposed Rule 400.2 does not require the use of emission control technologies which might degrade or endanger the environment. The general federal RACT emissions limits can normally be achieved by the application of Low

- Nox Burners and/or Flue Ga s Recirculation

.

The RACT emissions limits do not require the use of SCR or SNCR technologies. Therefore, any impact from the use of these technologies is avoided.

D. Amended Rules: Rule 101

– Definitions, Rule 424

– Architectural Coatings,

Rule 425

– Aer ospace Coatings Operation, and Rule 427

– Automotive Refinishing Operation.

Imperial County was recently designated attainment for Ozone. The ICAPCD has the responsibility for regulating air pollution from all sources within the County. Under state law, t he ICAPCD is required to adopt rules to achieve ambient air quality standards and to enforce the provisions of local, state, and federal air quality laws.

The ICAPCD made commitments to implement control measures through the adoption of rules that regula tes Ozone (and its precursors) in an effort to reduce emissions and to bring Imperial County into compliance with the CAAQS for ozone by the earliest practicable date.

ICAPCD’s Rule 101

– Definitions has been amended and incorporated definitions
pertaining to the newly proposed rules.

In January of 2005, the ICAPCD adopted an amended version of Rule 424, Architectural Coatings. On May 26, 2000 the CARB submitted this r evision to the U.S. EPA for adoption into the SIP. Within the same time frame CARB approved and subsequently amended a Suggested Control Measure (SCM) for Architectural Coatings. The ICAPCD has revised its Rule 424 to comply with the updated SCM. The ame nded

rule reflect s the revis ions on the SCM dated June 2000. The new SCM specifies new and revised limits for volatile organic compound s (VOC) for certain coating categories

. In addition, the amended rule has prompted a revision to ICAPCD’s Rule 101,

Defin itions.

In May 18, 2004, the ICAPCD adopted an amended version of Rule 425, Aerospace Coating Operations. Aerospace Coating Operations is a rule designed to reduce VOC emissions at industrial sits engaged in coating airplanes, space craft and their

compo nent parts. The State of California submitted Rule 425 to the U.S. EPA on July 19, 2004 as a revision to the California SIP. A completeness determination was made

on the rule submittal for Rule 425 on August 10, 2004 by the U.S. EPA. The U.S. EPA19 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES recently updated the listing for the Identification of Performance Standards for Aerospace Coatings Operations. Therefore, the ICAPCD updated section C

– Record Keeping Requirements of rule 425 to comply with the recent updates.

In addition to amending rules 424 and 425, the ICAPCD is amending Rule 427, Automotive Refining Operations. Rule 427 was first adopted in May of 1999. The CARB in cooperation with the air pollution control and air quality management district’s developed a SCM for Automotive Coatings. The SCM promotes uniformity amongst district rules, improves enforceability and will achieve additional reductions of VOC’s. As such, the ICAPCD is amending existing Rule 427 to incorporate the VOC limits and other provisions of the SCM. The amended rule has a number of prohibitions that include a prohibition of sale of non

- compliant coatings or solvents and a prohibition of such materials in automotive refinishing shops. The amended rule also contains some additional requirements for manufacturers or supplier s of automotive coatings and related material to provide all the necessary information to their clients enabling them to comply with the rule requirements.

Staff at the ICAPCD reviewed the SCM developed by CARB and the Identification of

Performance Stand ards by the U.S. EPA and implemented the necessary changes to

rule s 424, 425, and 427. The amendments to these rules address the issue of VOC

emissions help to maintain uniformity with other counties within the State. The ICAPCD

is confident that the ame nded versions of the rules will meet with CARB and U.S. EPA approval

.

IV. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)

Because the adoption of the newly proposed an d amended rules are considered a “project” under CEQA the ICAPCD reviewed all potentially significant impacts and found that the newly proposed and amended rules are categorically exempt pursuant to California Code of Regulations (CCR) §15308. The newly proposed rule s clarify applicability; strengthen adminis trative requirements by providing definitions; require an

Emissions Control Plan for e very affected facility; specify recordkeeping and monitoring (alternative CEMS) requirement ; clarify compliance testing methods; and establish a compliance schedule. The newly proposed rules do not relax any previously existing requirements of the ICAPCD. A brief discussion of those potential impacts follows:

A. AIR QUALITY

The increase in carbon monoxide emissions from units that required modifications to

meet the NOx lev els required by this rule is insignificant. All of the units are located in CO attainment areas. The most significant potential impact is ammonia slip from SNCR and SCR systems and ammonia leakage from storage and handling systems, which will

result in e missions of ammonia to the atmosphere. Ammonia emissions are toxic and may increase the formation of PM 10 in the atmosphere. However, as explained above all existing units already have installed or will not be utilizing SNCR or SCR as a control

device. Any new facility will be required to comply with Best Available Control Technologies.20 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES B. HAZARDS

Ammonia is a toxic, highly reactive compound and its use, storage and transport can be hazardous, especially in the case of worker exposure to highly concentrated ammonia vapor or contact with liquid ammonia. Occupational Safety and Health Administration (OSHA) regulations specify the methods for the use, storage and transport of ammonia. These regulations were developed to reduce the hazards that mig ht occur when handling ammonia.

The spent catalyst materials from the use of SCR commonly contain small amounts of hazardous materials, including vanadium pentoxide. This compound is toxic if inhaled. A majority of catalysts used in California are now r eclaimed and recycled by the manufacturer, so that their disposals pose no significant environmental impacts. For those facilities that do not recycle their catalysts, the spent material is required to be deposited in a Class I landfill site.

C. ENERGY

Add itional fan energy will be required to operate FGR, SNCR, and SCR systems. All of the systems require additional mass flows and gas velocities, which will increase flow losses through the furnaces and downstream passages. The FGR ducting and SCR

reactor are additional flow impedances. Certain Low NOx burners are more fuel

efficient.

The adoption of the newly proposed and amended rules assure the maintenance, restoration, enhancement and protection of the environment therefore, p ursuant to CEQA Guideline s, the ICAPCD has prepared a Notice of Exemption, Categorical Exemption (Class 8

- 14 CCR, Section 15308)

.

V. RULE DEVELOPMENT PROCESS

In October of 2008, the ICAPCD held a meeting with U.S. EPA and CARB representatives via teleconference, to discuss the potential of the development of NOx rules to comply with RACT requirements. The ICAPCD agreed to initiate development of three newly pro posed rules and three amended rules; Newly proposed rules are as follows: 1) Emissions Statement and Certification, 2) Stationary Gas Turbines and 3) Boilers, Process Heaters, and Steam Generators, Amended rules are as follows: 1) Architectural Coatings, 2 ) Aerospace Coating Operation, and 3) Automotive Refinishing Operations.

On November 2008, ICAPCD prepared and presented preliminary proposed draft the proposed rules to the major local sources which included the Imperial Irrigation District, Spreckles Sugar and U.S. Gypsum. The approach by the ICAPCD in releasing the preliminary proposed draft NOx rules was to receive industry comment to help identify and reduce the risk of major economic burden to the County, if any, before releasing a copy to U.S. E PA and the CARB.21 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES By January 2009 a preliminary draft copy of the proposed rules were submitted to U.S.

EPA and CARB for informal review and comment. All comments were reviewed and appropriately included into the Rule.

The ICAPCD re

- submitted the prelim inary proposed Rules to U.S. EPA and CARB, for informal comments. Once again, the U.S. EPA and CARB commented on these rules and the ICAPCD incorporated these comments into our rules as appropriate. The

D istrict incorporated their comments into the propos ed rules as appropriate. Informal comments on these rules were also submitted by the Imperial Irrigation District, Spreckels, Sugar and U.S. Gypsum. An agreement was reached with U.S. EPA that they will consider proposed Rule 400.2

– Boilers, Process Hea ters, and Steam Generators to be RACT after adoption, if their comments were addressed.

The ICAPCD conducted a public workshop to collect comments on the newly proposed

and amended rules at the ICAPCD’s office in El Centro , California . The workshop was

he ld on December 16, 2009. Comments provided by the public during the workshop were incorporated into the newly proposed and amended rules as appropriate.

A Public notice for a public hearing inviting the community to to review and comment on the newly pro posed and amended rules was published in the Imperial County local newspaper of greatest circulation, the Imperial Valley Press, on December 23, 2009 and

the ICAPCD website. A second notice cancelling and rescheduling the public hearing for the adoption of newly proposed and amended rules was published on January 15,

2010.

VI. R ECOMMENDATIONS

A. APCD ADVISORY BOARD

The Air Pollution Control District Advisory Board met to discus s the newly proposed and

the a mended Rules on January 7 , 20 10 . The APCD Advisory Board recommended the approval of the newly proposed and amended rules, the staff report, it’s findings and appendices

.

B. STAFF RECOMMENDATION

ICAPCD staff recommends the adoption of the newly proposed Rule 116

- Emissions Statement and Certification, Rule 400.1

- Stationary Gas Turbines, Rule 400.2

- Boilers, Process Heaters, and Steam Generators and a mended Rule 424 for Architectural Coatings, amended Rule 425 f or Aerospace Coating Operation and amended Rule 427 for Automotive Refinishing Operations. Adoption of the Rules will allow the ICAPCD to

meet the NOx deficiency identified in the revised RACT analysis thereby complying with federal RACT requirements . Complying with federal RACT requirements will allow the ICAPCD to submit an approvable RACT SIP and an “ 8

- hour Ozone Air Quality Modified

Plan ”.22 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES VII. DECLARATION OF FINDING

The Imperial County Air Pollution Control District Board hereby finds as follows:

The adoption of the newly proposed and amended rule s for the Impe rial County, is considered a project within the meaning of Section §21065 of the California Environmental Quality Act (CEQA).

The adoption of the staff report, its findings and appendices ar e exempt from the requirements of Public Resources Code Section 21000 et seq. under the CEQA Guidelines, in the California Code of Regulations Section 15061 (b)(3).

The ICAPCD is a regulatory agency and the public agency with the principle responsibility for carrying out project s related to air pollution and the control thereof

.

Clean air is a valuable and essential natural resource.

The newly proposed and amended rules will serve to reduce the amount of NOx

introduced into the ambient air.

The adoption of the newly proposed and amended r ules will serve to enhance and protect the environment by controlling air pollutant source s of NOx.

There has been no evidence presented to suggest that the implementation of the newly proposed and amended rules, the st aff report, its findings or appendices will have an

adverse effect on the environment.

There has been no evidence presented to suggest that the implementation of the newly proposed and amended r ules , the staff report, its findings and appendices will lead to or result in cumulative adverse impacts

.

Health and Safety Code §40702 provides the authority to the ICACPD to enact and adopt the newly proposed and amended Rules.

The requirements of the newly proposed and amended r ules , the staff report, it’s findings and appendices are clear and capable of being understood by those persons directly affected by it.

The newly proposed and amend ed r ules , the staff report, it’s findings and appendices do not conflict with or contradict any existing statute, cour t decision, or state or federal regulation.

The requirements of the newly proposed and amended r ules , the staff report, it’s findings and appendices are not duplicative of any existing state or federal regulation.

The newly proposed and amended rules, th e staff report, it’s findings and appendices described herein will not significantly affect air quality or emissions limitations and23 | ICAPCD STAFF REPORT FOR NEW (NOx) AND AMENDED RULES therefore is exempt from California Health and Safety Code section §40728.5 (d), which requires a socioeconomic impact ana lysis of the proposed action to be performed.

T he Imperial County has a population of less than 500,000 people.

VIII. REFERENCES

1991 Air Quality Attainment Plan for the San Joaquin Valley Air Basin, San Joaquin Valley Unified Air Pollution Control District, January 30, 1992.

Staff Report for Rule 1159, Mojave Desert Air Pollution Control District, February 22,

1995.

1991 Air Quality Attainment Plan for the San Joaquin Valley Air Basin, San Joaquin Valley Unified Air Pollution Control District, January 30, 1992.

California Air Resources Board "Determination of Reasonably Available Control Technology and Best Available Retrofit Control Technology for Industrial, Institutional, and Commercial Boilers, Steam Generators and Process Heaters" July 18, 1991.