Final Staff Report with Appendices 

 For Amendments to Rule 4308

SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 

FINAL STAFF REPORT 

December 17, 2009 

Amendments to Rule 4308 

 (Boilers, Steam Generators, and Process Heaters– 

 0.075 MMBtu/hr to less than 2.0 MMBtu/hr)

 

Prepared by: Katy Linebach, Air Quality Specialist

 

Reviewed by: Saul Gamez, Air Quality Engineer 

 Colette Kincaid, Senior Air Quality Specialist 

 Stanley Tom, Senior Air Quality Engineer 

 Clay Bishop, Air Quality Inspector 

 Joven R. Nazareno, Senior Air Quality Engineer 

 George Heinen, Supervising Air Quality Engineer 

 Errol Villegas, Planning Manager 

 

 

I. SUMMARY 

A. Reasons for Rule Development and Implementation 

The California Air Resources Board (ARB) and United States Environmental 

Protection Agency (EPA) classified the San Joaquin Valley Air Basin (SJVAB) as 

severe and serious non-attainment area for the state and federal ozone 

standards, respectively. In accordance with Federal Clean Air Act (CAA) 

requirements for non-attainment areas, the San Joaquin Valley Unified Air 

Pollution Control District (District) adopted the 2007 Ozone Plan to establish the 

strategy for attaining the federal eight-hour ozone standard. The SJVAB is also 

currently designated as nonattainment for the national ambient air quality 

standard (NAAQS) for particulate matter with aerodynamic diameter of 2.5 

micrometers or less (PM2.5). As such, the District's Governing Board adopted 

the 2008 PM 2.5 Plan on April 30, 2008. 

The ozone and particulate matter attainment strategies are comprised of 

regulatory and incentive-based measures to reduce emissions of oxides of 

nitrogen (NOx), volatile organic compounds (VOC), particulate matter and sulfur 

oxides (SOx). As a result, this rule development project is subject to the Code of 

Federal Regulations (CFR), the CAA and the California Health and Safety Code 

(CH&SC) requirements. 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

2 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

This rule amendment project is proposed to satisfy the goals of the District’s 2007 

Ozone Plan and 2008 PM2.5 Plan. The proposed amendments to Rule 4308 will seek 

to obtain as much NOx, SOx, and PM emission reductions from the source category as 

expeditiously practicable, technologically feasible, and economically reasonable, as 

determined by the District’s Governing Board. Furthermore, the District intends to 

satisfy the requirements identified in Table 1. 

Table 1 

Subject Reference Requirement 

BACM Federal Register 

8/18/94 

Provisions in attainment plans should include 

the application of best available control 

measures (BACM) to existing major stationary 

sources. 

BARCT 

CH&SC 40919(a)(3) 

2007 Ozone Plan 

 Ozone attainment plan should provide for best 

available retrofit technology (BARCT) for 

existing permitted sources. 

Deadlines Ozone Plan Adoption of rule amendments by the 4th 

quarter of 2009. 

Feasible 

Controls CH&SC 40914(a)(2) Ozone attainment plans should include "all feasible control measures." 

RACT CAA 182(b)(2) and 

182(f) 

Ozone attainment plans shall assure that 

reasonable available control technology 

(RACT) for oxides of nitrogen (NOx) and VOC 

is in use at sources and on source categories 

at or above the RACT threshold. 

RACT 

Threshold 

70 Federal Register 

30592-30596 

5/26/05 

The applicable RACT threshold for control 

measures shall be the threshold in effect on 

June 15, 2004. The Districts threshold on 

June 15, 2004 was 10 tons per year (tpy) for 

NOx or VOC. 

Reductions Ozone Plan and PM 

2.5 Plan 

Emissions reduction calculations are shown in 

Appendix B of the staff report. 

Timeline CAA Section 

172(c)(1) 

Ozone attainment plans shall implement 

control measures as expeditiously as 

practicable, and provide for attainment. 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

3 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

B. 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 

goal of restoring emissions to 1990 levels by 2020. In the coming years, ARB and the 

Legislature will be developing policies and programs to implement AB 32. There are 

many win-win strategies that can reduce both GHG and criteria/toxic pollutant 

emissions. In relation to criteria pollutants, greenhouse gases have been recognized by 

EPA to contribute to the air pollution, and therefore have an impact on the public health 

and welfare of citizens. However, the Districts statutory authority dictates that criteria 

pollutants be addressed first while also recognizing the impacts of greenhouse gases on 

the environment. 

The San Joaquin Valley Air Pollution Control District’s Governing Board adopted the 

Climate Change Action Plan (CCAP) in August 2008. For CEQA, one of the goals of the 

CCAP is to establish District processes for assessing the significance of greenhouse 

gas impacts. The District has developed a proposed policy and proposed guidance for 

addressing greenhouse gases under CEQA, which will be going to the District 

Governing Board for approval in December 2009. 

B. Description of the Project 

The District’s Governing Board adopted Rule 4308 (Boilers, Steam Generators, and 

Process Heaters – 0.075 MMBtu/hr to 2.0 MMBtu/hr) on October, 20, 2005. District 

staff is seeking to amend Rule 4308 to implement an emission control measure (SCOM-3) in the District’s 2008 PM 2.5 Plan. The control measure indicates that NOx 

emission reductions could be achieved by lowering the NOx emission limit on boilers of 

this size category. 

As guidelines for developing the proposed changes to Rule 4308, District staff studied 

rules from other air districts within and outside of California. Lower NOx limits are 

already in place in the following rules; South Coast Air Quality Management District 

(SCAQMD) Rule 1146.2 (Emissions of Oxides of Nitrogen from Large Water Heaters 

and Small Boilers and Process Heaters) (Amended May 5, 2006) and Bay Area Air 

Quality (BAAQMD) Regulation 9 Rule 6 (Nitrogen Oxides Emissions From Natural GasFired Boilers And Water Heaters) (Amended November 7, 2007). 

Rule 4308 currently is a point of sale type rule and the source category affected would 

include water heater manufacturers, plumbing wholesalers, business and oil supply 

stores, plumbers and contractors. The proposed changes would continue with a point of 

sale rule, but lower the NOx emissions limits to 20 ppmv. A point of sale or attrition rule 

applies to any person who supplies, sells, offer for sale, installs, or solicits the 

installation of units with a rated heat input of 0.075 MMBtu/hr to less than 2.0 MMBtu/hr. 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

4 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

In other words, any operators of the affected units are not directly subject to the rule, but 

would rely on manufacturers, suppliers, contactors to sell and install units that are in 

compliance with the requirements of the rule. This approach will allow the District to 

achieve NOx reductions without placing an undo financial burden on some of the 

operators and businesses here in the Valley. 

C. Rule Amendment Process 

The District’s 2007 Ozone Plan and the 2008 PM 2.5 Plan identified Rule 4308 as 

control measure S-COM-3 which would be implemented through the rule development 

process. As part of the rule development process, District staff conducted three public 

workshops in April 2009, July 2009, and September 2009 to present and discuss 

proposed amendments to Rule 4308 and the draft Staff Report. The Receive and File 

action for this rule is scheduled for the November Governing Board Hearing with the 

Public Hearing to consider adoption of the proposed amendments in December 2009. 

 

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

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

benefits or that will strengthen emission limitations. As part of the District 

socioeconomic analysis process, District staff requested volunteers from affected 

stakeholders and interested parties to participate as members of the Socioeconomic 

Focus Group. District staff convened a meeting of the Focus Group at the time of the 

second workshop to assist District staff in gathering information on regulatory 

compliance costs and business impacts resulting from compliance with the draft 

amendments. The results of the socioeconomic analysis were published in a report and 

are presented along with the proposed rule amendments to the public and interested 

parties during the final workshop. 

At the workshops, District staff presented the objectives of the proposed rulemaking 

project and provided draft amendments to Rule 4308. The knowledge gathered during 

public workshops and the socioeconomic focus group helped District staff to accurately 

amend the draft rule and draft Staff Report. The comments received from the public, 

affected sources, interested parties, ARB, and EPA, during the public workshop process 

have been incorporated into the draft rule as appropriate. 

The proposed rule, final draft staff report with appendices, and final draft socioeconomic 

analysis report has been published and made available to affected sources and 

interested parties prior to the public hearing to consider the adoption of proposed 

amendments to Rule 4308 by the District Governing Board. The public hearing is 

scheduled to take place on December 17, 2009. 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

5 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

II. BACKGROUND 

A. Source Description 

Boilers, steam generators, process heaters, and water heaters of this size range are 

generally used for small business or industrial steam or heating applications, and can 

be used for running small furnaces and heaters, and can either heat process fluids 

directly or use a heat exchange fluid. The SCAQMD estimated the number of units, 

based on a unit per person ratio, to be one unit for every 350 people. Based on that 

ratio and an estimated 4.2 million people in the Valley in 2010, the SJVAB has 17,600 

units with a heat input rating between 0.075 MMBtu/hr and 2.0 MMBtu/hr located in the 

District. 

During the workshops, the District solicited input from manufactures and stakeholders to 

establish a more refined inventory of units, but was unable to obtain any additional 

information. Because these sources are not permitted or registered, the estimated 

number of units has been determined using the best available data and is used in 

further calculations. 

Boilers: Many boilers are used to produce steam and others provide hot water for a 

variety of purposes. They have three basic designs: fire tube, water tube or cast iron 

sectional. Fire tube boilers use combustion gasses passing through a set of tubes to 

increase efficiency and the temperature of surrounding water or steam. Water tube 

boilers use combustion gas passing over tubes filled with water or steam to increase the 

surface area for quicker heating. Cast boilers pass combustion gasses over water 

containing sections producing a low temperature water or low pressure steam. Newer 

types of boilers may use a heat exchanger made of copper tubes with heat exchange 

fins. 

Water Heaters: Water heaters include a wide variety of designs from a simple tank to 

larger units with sophisticated controls and boiler designs. Because currently there are 

not enough models that meet the proposed 20 ppmv NOx limits to be considered 

technologically feasible for this type of unit, instantaneous water heaters and pool 

heaters are not required to meet the new 20 ppmv emission limits but a 55ppmv 

emissions limit instead. 

The majority of boilers, furnaces, and heaters are used to provide comfort heating and 

hot water for personal use along with steam for commercial processing needs. These 

units are found in manufacturing facilities, government facilities, general merchandise 

stores, restaurants, hotels, rooming houses and camps, cleaning service facilities, 

hospitals, educational institutions, religious organizations, and refineries. Humidifiers 

are not considered to be included in this category due to technical differences in design 

and operation. 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

6 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

Approximately 97% of the affected units are fueled by natural gas; other fuels reported 

were liquefied propane and distillate oil. Because fuel type is important when 

considering control technology, the District is focusing on natural gas units. Low NOx 

burners reduce NOx emissions by staging the combustion process, which partially 

delays combustion. This delay results in reduced peak flame temperatures and 

suppressed NOx formation. Different kinds of combustion include Pulse combustion, 

atmospheric combustion and induced draft combustion. 

B. Source Category 

Manufacturers have focused on combustion modification to meet the lower NOx limit as 

required in other California air districts. Combustion modification systems are typically 

designed to reduce thermal NOx formation by changing the flame characteristics to reduce 

peak flame temperature. Some of the design principles used in Ultra low NOx and Low 

NOx burners include staged air burners, staged fuel burners, pre-mix burners, internal 

recirculation, and radiant burners. Burner design technology incorporated radiant burners 

with a premix of air and fuel to provide an even distribution of heat combustion to lower 

NOx emissions. 

The technology required to reduce NOx emissions to the proposed emission limit is 

currently available. Most small boiler manufacturers offer at least one model that meets 

or exceeds the limits proposed in draft Rule 4308. Certification results for South Coast 

show that manufactures have made substantial progress in reducing the NOx emissions 

for this source. In their certification tests, 46 percent of the smaller units meet the 

proposed limit of 20 ppmv, while 18 percent of the larger units meet the proposed limit of 

20 ppmv. These test results, compiled during testing for the 30 ppmv certification, show 

the availability of the technology to accomplish the proposed emission limits of 20 ppmv. 

A boiler or water heater typically has a life span of at least a decade before it needs to 

be replaced. The 2007 Ozone Plan suggested that staff consider the possibility of 

requiring a 10 year replacement cycle. Based on an implementation study conducted by 

the SCAQMD the average useful life of boilers, with a rated heat input between 0.4 

MMBtu/hr and 2.0 MMBtu/hr is 15 years. The implementation study does not define the 

average useful life of boilers, with a rated heat input between 0.075 MMBtu/hr and 0.4 

MMBtu/hr. The Bay Area’s Regulation 8 Rule 6 considers the life of these units to be 

from 12 – 30 years. Comments from manufacturers, stakeholders, and further research 

point toward the useful life of units in this size category to be between 7yrs – 30 yrs. 

Boiler units that are older than 15 years old tend to require more maintenance and 

upkeep and may produce NOx emissions closer to 65 ppmv. Taking into account South 

Coast’s, Bay Areas, and stakeholder’s input, the District estimates an average useful life 

of 20 years for units in this size category, which takes into account a longer life cycle of 

the larger units and the shorter life cycle of the smaller units. 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

7 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

Currently, there are no known small gaseous-fired or liquid-fired units that operate with 

both PM2.5 and SO2 control devices. Control devices such as baghouse, electrostatic 

precipitators, and scrubbers are available, but they have not yet been demonstrated or 

achieved-in-practice for these units. Units firing on natural gas, propane, and liquefied 

petroleum gas, or low sulfur diesel tend to emit very low levels of PM2.5 and SO2. 

Because of this, Rule 4308 does not specify specific values for PM2.5 and SO2 

reductions, however, since NOx is a PM2.5 precursor, this rule will further efforts to 

lower PM2.5 levels in the Valley. 

III. DISCUSSION 

A. Existing Rule 4308 

Rule 4308 (Boilers, Steam Generators, and Process Heaters – 0.075 MMBtu/hr to 2.0 

MMBtu/hr) was adopted October 20, 2005 and has not been amended since. The 

purpose of Rule 4308 is to limit NOx emissions from large water heaters and small 

boilers. The rule applies to units that are less than 2,000,000 Btu per hour and greater 

than or equal to 75,000 Btu per hour. Units that are in manufactured homes and 

humidifiers are currently exempt. 

The rule requires that no person sell, install, or offer for sale within the District any 

natural gas-fired water heater after January 1, 2007 that emits more than 0.093 lbs of 

NOx/MMBtu if less than or equal to 0.4 MMBtu/hr, or 0.036 lbs of NOx/MMBtu if great 

than 0.4 MMBtu/hr and less than 2.0 MMBtu/hr. The rule also requires subject water 

heaters to be certified. 

B. Summary of Proposed Amendments to Rule 4308 

Section 2.0 Applicability: This section only has some simple language changes for 

clarification. 

Section 3.0 Definitions: The definitions of “California PUC Quality Natural Gas”, 

“Certified Retrofit Kit”, “Instantaneous Water Heaters”, “Rated Heat Input”, and 

“Recreational vehicle” would be added. The definition of “humidifier” would also be 

clarified to reflect the exclusion of humidifiers from this rule. 

Section 4.0 – Exemptions: The exemption for humidifiers would be removed. 

Humidifiers were not meant as an exemption, but as a unit that is excluded from the 

definition of “Process Heater”. Therefore, humidifiers are not subject to the 

requirements of this rule. 

District staff is proposing the addition of an exemption for recreational vehicles. Through 

stakeholder input and research it has become apparent that there are very few units in 

recreational vehicles that fall under this size category and also run on PUC gas. Most 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

8 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

units that are in recreational vehicles are close to a 12 gallon size unit, which is no 

where close to the 80 gallon size that a typical 75,000 Btu unit is. These units are 

located in a mobile source and therefore make them very difficult to track to confirm 

compliance. Units in a recreational vehicle are typically not used on a frequent basis, so 

contribute very little to the NOx emissions of this source category. Air Districts such as 

South Coast and Bay Area include this exemption in their rules. Because of a lack of 

impact and the desire for consistency, District staff is proposing to include this 

exemption. 

Section 5.0 – Requirements: The rule requirement would remain as point of sale or 

an attrition rule instead of changing to a forced replacement rule. District staff 

thoroughly looked at different options for a forced replacement. However, upon further 

input from stakeholders and research, it became apparent that the costs for a forced 

replacement schedule would be considerable to businesses. The socioeconomic 

analysis showed significant impacts on dry cleaners and limited service restaurants if 

forced replacement were to be required. 

With forced replacement, there is also a problem with enforceability of the rule. Facilities 

with Title V permits and other permits with the District were concerned that their 

locations would be held to the forced replacement requirement, but those locations 

without any permits would be allowed to continue using older units. Also, with the 

number of units in this size category, it would be very difficult for District staff to be able 

to follow up with all of the units. 

An attrition rule is not only more enforceable and more economically feasible, but it 

allows the District to still get the amount of NOx reductions as the forced replacement. 

This attrition rule assumes a useful life of 20 years per unit, instead of the forced 15 

year replacement. The NOx reductions will be spread out over a longer period of time, 

but the same amount of reductions will eventually be achieved. For further detail on 

emissions reductions, refer to Appendix B. 

Emission levels would be changed to 20 ppm or 0.024 lb of NOx per MMBtu/hr for both 

0.075 MMBtu/hr – 0.4 MMBtu/hr and 0.4 MMBtu/hr – 2.0 MMBtu/hr categories, except 

for instantaneous water heaters, pool heaters and units fired on non-PUC quality gas 

and liquid fuels. These other categories have different standards to reflect what is 

possible with the available technology or what has previously not been specified in the 

rule. 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

9 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

Special consideration was given to the possibility of different NOx limits for high 

efficiency units. The U.S. Department of Energy Regulations and the California Energy 

Commission has an Appliance energy efficiency requirement that applies to units of this 

size. They require units to be at least 80% energy efficient. Representatives of Pulse 

Combustion technology asked District staff to consider allowing their technology to 

continue to be used, even though the units have an emissions concentration of close to 

28 ppmv of NOx, because of the high fuel and electrical efficiency of the unit. However, 

District staff did not receive sufficient information to show that the lower use of fuel was 

significant enough to counteract the higher ppmv emissions concentration. Also it 

became apparent that there are other units that are more fuel and energy efficient and 

still meet the proposed 20 ppmv NOx limit. Because the goal of this rule is to reduce 

specifically NOx emissions, District staff decided not to grant special consideration to 

these particular units at this time. This is consistent with the SCAQMD’s rule. 

Section 6.0 – Administrative Requirements: Certification and compliance options will 

be made specific to manufacturers. Manufacturers will be required to submit information 

according to previous rule requirements in Sections 6.2 and 6.3. Language has been 

added to include the certification of retrofit kits. 

Section 7.0 – Compliance Schedule: The compliance deadline will be changed to 

January 1, 2011 by which units must comply with the Tier 2 specifications in order to 

reflect the goals for the new amendments and to coincide with PM 2.5 Plan emissions 

reductions commitments. The emissions reductions that are claimed in the PM2.5 Plan 

will be achieved by the replacement of units starting with the January 1, 2011 

compliance date. 

Table 1 

Emissions Limits 

Type and Size of Unit 

(in MMBtu/hr)

NOx Limit 

(at 3% stack gas oxygen by volume on a dry basis) 

All Fuels PUC Gas Non PUC Gas 

and Liquid Fuel 

Tier 1 

lb/MMBtu of heat 

input (ppmv) 

Tier 2 

lb/MMBtu of heat 

input (ppmv) 

Tier 2 

lb/MMBtu of heat 

input (ppmv) 

Units greater than or equal to 0.075 

but less than or equal to 0.4 0.093 (77) 0.024 (20) 0.093 (77) 

Units greater than 0.4 but less than 

2.0 0.036 (30) 0.024 (20) 0.036 (30) 

Instantaneous water heaters and 

pool heaters greater than or equal 

to 0.075 but less than or equal to 

0.4 

0.093 (77) 0.068 (55) 0.093 (77) 

Instantaneous water heaters and 

pool heaters greater than 0.4 but 

less than 2.0 

0.036 (30) 0.024 (20) 0.036 (30) 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

10 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

IV. CURRENT EMISSIONS AND EMISSIONS REDUCTION 

The South Coast Air Quality Management District (SCAQMD) calculated capacity 

factors and emission rates for units subject to SCAQMD Rule 1146.2 (Large Water 

Heaters and Small Boilers) by gathering data from boiler manufacturers and conducting 

a statistical survey. District Rule 4308 will regulate the same class and size of units like 

those subject to Rule 1146.2. Therefore, District staff will use capacity factors, emission 

rates and population estimates for the emissions analysis that are similar to those used 

in the SCAQMD final staff report on Rule 1146.2. 

The current and new levels for lbs/MMBtu are calculated using the formula developed in 

the District’s Guideline for Expedited Application Review (GEAR) data for boilers. The 

following is an example: 

 (F factor) (Molar weight) (Molar specific volume ) (temp difference in kelvin)

77ppm x 20.9 x 8710 x 46 x 1 x 459.67 + 60 = 0.093 lb/MMBtu

1 x 106 20.9- 3%O2 379.5 459.67 + 68 

 

In the PM2.5 Plan, the District estimates that 3.59 tons per day (tpd) of NOx and 3.3 tpd 

of SOx are emitted in the SJVAB from this source category. The estimated annual 

average emissions reductions from this rule are estimated in the PM2.5 Plan at 0.57 

tpd. Staff review of the SCAQMD emissions analysis for Rule 1146.2 indicated a need 

for District staff to improve the estimated number of units in the SJVAB and emissions 

associated with this source category. District staff conducted a survey attempting to 

obtain information to form a more accurate emissions inventory. However, only about 

50% of surveys were returned, and very few of them contained any shared information. 

Therefore, District staff will continue to use the estimates that were previously made. 

The emissions and emissions reductions analysis from sources affected by this 

proposed rule amendments can be found in Appendix B. Emissions reductions for SOx 

were not calculated for this amendment. At this time, it is believed that the emissions of 

SOx from natural gas are as low as is feasible. Therefore, no emissions reductions for 

SOx from the proposed amendments will be claimed. 

V. COST EFFECTIVENESS ANALYSIS 

CH&SC Section 40920.6(a), requires the District to analyze the cost effectiveness of 

new rules or rule amendments that implement Best Available Retrofit Control 

Technology (BARCT) or all feasible measure. The estimated cost effectiveness is 

$1,500 - $2,000 per ton of NOx for an individual unit. District staff has prepared a cost 

effectiveness analysis of the rule to analyze the economic feasibility of the proposed rule 

amendments. This analysis can be found in Appendix C. 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

11 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

VI. SOCIOECONOMIC ANALYSIS 

CH&SC Section 40728.5(a) requires the District to perform an assessment of the 

socioeconomic impacts of the adoption, amendment, or repeal of a rule or regulation 

that will significantly affect air quality or emission limitations. The socioeconomic 

analysis will be used to further refine the rule amendments. The socioeconomic report 

is published as part of the Final Draft Staff Report, and is located in Appendix D of the 

Final Draft Staff Report. 

The Socioeconomic Analysis in Appendix D is an analysis that was conducted on 

August 21, 2009 on a previous version of the rule. The analysis assumes forced 

replacement every 15 years, thus showing some levels of significance. After that initial 

analysis, more revisions were made to the cost of units, showing even more impact to 

various different sectors of business. With the point of sale rule and the current 

proposed amendments, the socioeconomic impacts are no longer significant. 

VII. ENVIRONMENTAL IMPACT ANALYSIS 

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

any potential environmental impacts of the proposed rule amendments to Rule 4308 and 

will recommend appropriate action to the District Governing Board. Based on the lack of 

evidence to the contrary, District staff has concluded that the proposed amendments to 

the rules will not have a significant adverse effect on the environment. District staff has 

prepared a Draft Negative Declaration for the project. Upon approval of the proposed 

rule by the District’s Governing Board, District staff will file a Notice of Determination 

with each County Clerk within the boundaries of the District, CEQA Guidelines 

§15075(d). 

With the adoption of the District’s policy on Climate Change and Greenhouse Gases 

(GHG), each new rule or rule amendment will now evaluate its impact on GHG’s. For 

boilers of this size category, an 80% thermal and energy efficiency standard has been 

put in place by the California Energy Commission and the U.S. Department of Energy 

Regulations for appliances, including boilers, steam generator, process heaters, and 

water heaters. 

There is the slight possibility that fuel or energy efficiency would decrease as a result of 

this rule project because of the impact on fuel efficiency that low NOx and ultra low NOx 

burner technology can have. With the current NOx limit, boilers can reach 95% energy 

efficiency, but with the ultra low NOx burner, that efficiency becomes more difficult to 

achieve. High efficiency units are available that achieve the 20 ppmv NOx limit, but 

those units tend to be more expensive. 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

12 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

A. POTENTIAL EMISSIONS OF GHG 

District staff has calculated the estimated effect this rule amendment project will have 

on greenhouse gas emissions, taking into consideration the slight impact on efficiency 

of the units. 

Taking the population of boilers here in the SJVAB and the number of units on average 

that are replaced each year over a 20 year period, staff has calculated the number of 

units that may have already been replaced with the higher efficiency units because of 

the adoption of this rule in 2005. Section III B of Appendix B of the Staff Report 

contains the calculation of the number of units on average that are replaced each year. 

882 units each year x 4 years of the 2005 rule = 3,530 units that comply with 30 ppmv 

Based on data that staff has received from stakeholders and retailers, these 3,530 units 

tend to be 3-5% more efficient than units that meet the 20ppmv. If a new unit that 

reaches the 20 ppmv NOx limit is less efficient, that lost efficiency would be minimal, 

such as going from 87% energy efficiency to 84% energy efficiency. Therefore, 

exchanging these units in the future may cause a slight increase in GHG emissions. 

However, approximately 75% of the boiler population is made up of uncontrolled units 

with lower efficiencies that have yet to be replaced and will be impacted by the rule 

amendment project. 

17,600 units total – 3,530 units already replaced = 14,070 uncontrolled units 

These uncontrolled units typically run at a lower efficiency and can be estimated to meet 

the 80% appliance efficiency standard. These units, once replaced, will be more 

efficient by 7-10%, therefore causing a decrease in GHG emissions. 

District staff believes that the overall net effect of this rule amendment project will be a 

decrease in GHG emissions. The uncontrolled units, which make up 75% of the boiler 

population, are going from a lower efficiency to a higher efficiency rate; whereas, the 

units complying with the 30 ppmv, which make up 25% of the population, may decrease 

in efficiency. The increase in efficiency by 7-10% for 75% of the population is a much 

greater impact than the possible 3-5% efficiency decrease for 25% of the population. 

Therefore, the greenhouse gas impacts for this rule amendment project will be less than 

significant. 

VIII. RULE CONSISTENCY ANALYSIS 

Pursuant to CH&SC Section 40272.2, District staff has prepared a rule consistency 

analysis of Rule 4308 as part of the rule development process that compares the 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

13 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

elements of proposed rule amendments with the corresponding elements of other 

District rules, federal regulations and guidelines that apply to the same source category 

or type of equipment. 

IX. REASONABLY AVAILABLE CONTROL TECHNIQUES (RACT) ANALYSIS 

RACT Discussion 

The Clean Air Act (CAA) Section 182(b)(2) states that ozone attainment plans shall 

assure that RACT for volatile organic compounds (VOC) is applied at certain sources. 

Section 182(f) extends federal RACT requirements to NOx rules and major NOx 

sources. District Rule 4308 is a NOx rule, therefore underwent a RACT analysis during 

this rule amending project. A RACT analysis requires an examination of a rule against 

Federal rules, regulations, and technology guidelines as well as comparing it against 

rules from other Districts in California. District Rule 4308 was compared to federal and 

state regulations and guidance. The following is a discussion of that analysis. 

District staff compared emission limits, optional control requirements, and work practice 

standards in District Rule 4308 to comparable requirements in rules from the other Air 

Districts in California nonattainment areas. Further discussion and comparisons of 

District Rule 4308 with rules in other Air Districts in California is presented in Section IIB “Source Category” of the Final Draft Staff Report. District staff has concluded based 

on the aforementioned analyses, that District Rule 4308 satisfies RACT for small boilers 

and large water heaters. 

A. Comparison with Federal Rules and Regulations 

1. Federal Control Techniques Guideline (CTG) 

There is no EPA CTG for boilers, steam generators, water heaters or process heaters 

for sizes 0.075 MMBtu/hr to 2.0 MMBtu/hr. 

2. Alternative Control Technology (ACT) 

Three Alternative Control Techologies could apply to this rule. EPA-453/R-93-034 

discusses the NOx Emissions from Process Heaters. EPA-453/R-94-022 covers the 

NOx Emissions from ICI Boilers, and EPA-453/R-94-023 discusses the NOx Emissions 

from Utility Boilers. 

3. Federal New Source Performance Standards (NSPS) 

There is no NESHAP or MACT for boilers, steam generators, water heaters or process 

heaters for sizes 0.075 MMBtu/hr to 2.0 MMBtu/hr. 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

14 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

4. National Emission Standards for Hazardous Air Pollutants (NESHAPs) and 

Maximum Achievable Performance Standards (MACTs) 

There is no NESHAP or MACT for boilers, steam generators, water heaters or process 

heaters for sizes 0.075 MMBtu/hr to 2.0 MMBtu/hr. 

5. EPA Policy on Recordkeeping 

The recordkeeping requirement in Rule 4308 is consistent with EPA’s policy to keep 

and maintain records for at least five years. 

B. Comparison with Other California Non-Attainment Areas

District staff compared emission limits, optional control requirements, and work practice 

standards in District Rule 4311 to comparable requirements in rules from the following 

California nonattainment areas: 

• South Coast AQMD Rule 1146.2 

• Bay Area AQMD Regulation 9, Rule 6 

SCAQMD has a forced replacement provision as part of their rule which requires that 

units older than 15 years old be replaced. This is different from both BAAQMD’s rule 

and also the SJV rule which only require new or replacement units to meet the new NOx 

standards. District staff believes that the forced replacement measure is beyond the 

RACT requirement. As explained below, because the average unit life for this size 

category is 20 years, the “point of sale” approach achieves the needed emissions 

reductions in a timely and more cost effective manner. 

District staff’s initial proposal for amendments to the rule included a forced replacement 

schedule. The first socioeconomic analysis and cost effectiveness analysis for a forced 

replacement showed a notable economic impact on dry cleaning facilities and limited 

service restaurants which would have had to replace multiple units per location. After 

several workshops, District staff received more cost information provided by sellers, 

stakeholders, and contractors that was higher than the conservative numbers used 

Replacement Emission Standards 

(for each size category) Year Rule become Effective 

20 ppm for 0.4-2.0 2011 

SJVAPCD Attrition 

20 ppm for 0.075-0.4 2011 

20 ppm for 0.4-2.0 2010 

SCAQMD 15 yrs 

20 ppm for 0.075-0.4 2012 

30 ppm for 0.4-2.0 2008 

BAAQMD Attrition 

20 ppm for 0.075-2.0 2013 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

15 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

before in the cost effectiveness estimate. The new cost information was used to update 

the cost-effectiveness and socioeconomic impact of the rule on businesses and 

industry. Using this new cost information, the revised socioeconomic numbers showed 

the dry-cleaners, limited service restaurants, and schools would be even more impacted 

than the first estimate indicated. 

The cost of reductions for a forced replacement rule is much higher than for an attrition 

rule. For a forced replacement rule, the cost effectiveness analysis must include the 

entire cost of a unit and the installation costs. However, with an attrition rule, the 

compliance costs only include the dollar difference between a standard unit and a lowNOx, compliant unit. An example would be the cost effectiveness of a 0.4 MMBtu/hr unit 

for the forced replacement approach and the attrition approach. 

For forced replacement: 

$11,204 (cost of unit) + $11,204 (installation costs are 100% the capital cost) = $22,408 

$22, 408 x 0.131 (annualize capital cost factor for 15 years) = $2,936 per year 

$2, 936 per year / 0.0436 NOx tpy = $67, 327 per ton of NOx 

For attrition: 

$750 (cost difference between compliant and noncompliant unit) 

$750 x 0.117 (annualize capital cost factor for 20 years) = $88 per year 

$88 per year/0.0436 NOx tpy = $2,000 per ton of NOx

Because of the poor cost effectiveness and the significant impacts to some businesses, 

District staff recommends an attrition rule, similar to Bay Area’s rule. From research and 

discussions with stakeholders, these proposed limits are achievable and yet the 

technology is still reasonably available and achievable. Because the District is 

proposing the same NOx requirements as the other California nonattainment areas and 

proposing the changes to occur at a similar time, District staff believes that federal 

RACT requirements have been satisfied. 

C. Conclusion 

District staff concludes that District Rule 4308 satisfies RACT for small boilers and large 

water heaters in terms of emission limits and equipment standards. 
SAN JOAQUIN UNIFIED VALLEY AIR POLLUTION CONTROL DISTRICT 

Final Staff Report: Rule 4308 December 17, 2009

16 Final Staff Report with Appendices 

 For Amendments to Rule 4308 

X. REFERENCES 

1. Emissions Inventory Improvements for Selected Source Categories prepared by 

Pacific Environmental Services Inc. on External Combustions Boilers, Steam 

Generators and Process Heaters, published July 6, 2001. 

2. SCAQMD Final Staff Report for Rule 1146.2 adopted April 2006. 

3. SCAQMD Rule 1146.2 (Emissions of Oxides of Nitrogen from Large Water Heaters 

and Small Boilers), Adopted January 9, 1998 and Amended January 7, 2005. 

4. San Joaquin Valley Unified Air Pollution Control District 2007 Ozone Plan, April 30, 

2007. 

5. San Joaquin Valley Unified Air Pollution Control District 2008 PM2.5 Plan, April 30, 

2008 

6. Federal Clean Air Act, Amended 1990 

7. San Joaquin Valley Unified Air Pollution Control District, Rules and Regulations 

8. Bay Area AQMD Regulation 9 Rule 6 

9. Bay Area AQMD Regulation 9 Rule 6 Staff Report 

10. Los Alamos National Laboratory Environmental Documents 

http://www.lanl.gov/environment/air/docs/progs/OpPermit_LANLSect3-4.pdf

11. Lochinvar’s Unit List prices, effective August 18, 2008, Efficiency Information 

12. Fulton unit information and source testing, 2009, Test Report of Fulton Boilers with 

Low NOx Burner