UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

REGION IX AIR DIVISION

Technical Support Document 

for

EPA’s Rulemaking for the

California State Implementation Plan

Regarding

Feather River Air Quality Management District

Rule 10.9, “Rice Straw Emission Reduction Credits and Banking”

Prepared by: Nancy Levin

December 9, 2014
2

RULE IDENTIFICATION

Agency: Feather River Air Quality Management District

(FRAQMD)

Current SIP Approved Rule: None

Submittal Subject to this TSD: Rule 10.9 “Rice Straw Emission Reduction Credits 

and Banking”

Adopted April 6, 2009 & Amended October 6, 2014

Submitted November 6, 2014

BACKGROUND: 

Under Section 107(d) of the Clean Air Act (CAA), EPA designated portions of Yuba and 

Sutter counties nonattainment for the following three National Ambient Air Quality 

Standards (NAAQS): 1-hour ozone, 1997 8-hour ozone and 2008 8-hour ozone. These 

areas are regulated by the Feather River Air Quality Management District (FRAQMD).

New or modified major stationary sources of nonattainment pollutants subject to 

FRAQMD’s Federal New Source Review (NSR) program must obtain emission 

reductions to offset emission increases prior to constructing such sources.1 While NSR 

offsets are typically emission reductions generated from permitted stationary sources

(e.g., from shutdowns or over-control), the opportunities for generating such reductions

from traditional sources has been diminished due to implementation of stringent emission 

performance standards required by FRAQMD prohibitory rules. The purpose of Rule 

10.9 is to provide procedures to quantify, certify, and issue emission reduction credits 

(ERCs) for emission reductions that have resulted from the permanent curtailment of rice 

straw burning in FRAQMD in order to ensure that such reductions meet federal offset 

requirements.

2

 Existing FRAQMD Rule 10.2 “Emission Reduction Credit and Banking” 

(Adopted 2/8/1993; Amended 4/11/1993 and 7/2/2011) governs the banking and transfer

of ERCs, and Rule 10.1 “New Source Review” governs the use of ERCs. These two 

rules are not the subject of this rulemaking action. 

 

1 Rule 10.1 New Source Review (Adopted 10/5/2009, Amended 2/7/2012) has been 

approved into the SIP (9/24/2013; 76 FR 58461). FRAQMD also submitted an amended 

Rule 10.1 on November 6, 2014. Rule 10.1 requires the use of federally enforceable 

Emission Reduction Credits (ERCs). Rule 10.9, if approved, would provide for the 

generation of federally recognized ERCs.

2 Rule 10.9 would provide for the generation of federally recognized ERCs to address 

more stringent state offset requirements for pollutants such as PM10 and CO, even though 

FRAQMD is in federal attainment for PM10 and CO. See Attachment 4. 
3

Historically, the practice of rice growing included burning the field stubble and straw

following harvest to kill weeds and insects and prepare the field for next year’s plantings. 

In 1991, California passed the Connelly-Areias-Chandler Rice Straw Burning Reduction 

Act of 1991 (California Health & Safety Code (CH&SC) 41865), which required a phase 

down of the allowable rice straw burning acreage in the Sacramento Valley Air Basin.

3

 

By 2001, the phase down was complete and only 125,000 acres or 25% of the historically 

burned rice growing acreage can now be burned in any one year. One unique feature of 

the state law was that it specifically allowed ERCs to be generated from this curtailment, 

and stated that the related emission reductions could not be relied upon for demonstrating 

reasonable further progress or attainment of a NAAQS. While FRAQMD had previously 

issued rice straw ERC certificates under FRAQMD Rule 10.2,

4 Rule 10.9 was designed 

to ensure that the ERCs issued from this non-traditional source would meet the required 

offset integrity criteria for the purpose of providing federal NSR offsets.5 

RULE SUMMARY:

Rule 10.9 establishes standards, the administrative process, and enforceable procedures

for calculating creditable emission reductions of volatile organic compounds (VOC), 

nitrogen oxides (NOx), carbon monoxide (CO), particulate matter of 10 microns or less 

(PM10), and sulfur oxides (SOx) created through the permanent curtailment of burning 

rice straw. Once an ERC certificate has been issued by the Air Pollution Control Officer 

(APCO), ERCs may be used as offsets to meet federal or state NSR requirements. 

Owners of rice growing parcels are eligible to apply for ERCs if rice straw was burned 

during the baseline period, i.e., 1988 through 1992 (section C.1). All applications to 

obtain rice straw ERCs must be submitted by October 6, 2009, (section D.1). The rule 

contains requirements for both new applications and recertification applications (sections 

D.2 and D.3), including the list of each parcel included, the acreage used to grow rice 

during the baseline period, documentation that the rice straw burning occurred on the 

acreage used to grow rice during the baseline period, and a statement of intent to file a 

deed restriction for each parcel (s) in the application. These requirements are designed to 

 

3 A portion of the FRAQMD (South Sutter County) is located in the “Sacramento Valley 

Air Basin,” as defined by the state. 

4 Rule 10.2 (Adopted 2/8/1993; Amended 4/11/1993 and 7/2/2011) “Emission Reduction 

Credit and Banking” does not include the necessary provisions to ensure that emission 

reduction credits from nontraditional sources, such as curtailing rice straw burning, are 

surplus, quantifiable, enforceable, and permanent and, therefore, valid for federal NSR 

offset purposes. Because nontraditional sources have generally not been regulated, there 

are much less historic data. Nontraditional ERC generating rules must include more 

specific quantification procedures to provide the necessary assurances that the reductions 

are valid and can be recognized as federal NSR offsets. 

5 ERCs generated pursuant to Rule10.9 may also be used to address California offset 

requirements that are not in the SIP. 
4

limit agricultural burning to no more than 25% of the total acreage historically used to 

grow rice. 

The rule sets an application deadline to ensure the APCO can consider all historic rice 

growing acreage and ensure compliance with the acreage limits provided under state law. 

Section C.2 provides that the total available acreage for generating ERCs in FRAQMD

shall not exceed 36,228 acres.6 If the APCO receives applications where the total acreage 

exceeds this amount, the APCO must adjust the available acreage for each applicant in 

accordance with the procedures in section D.4. These sections ensure that the emission 

reductions come from a ‘real’ reduction in rice straw burning activities by limiting the 

total amount of acreage available to generate ERCs. 

Emission reductions are calculated in accordance with procedures in sections C.2, C.3, 

and C.4, and rely on the following parameters:

 Historic Burn Fraction (HBF): The HBF is the percent of acres grown that were 

burned. The air district establishes its district-specific HBF, which may vary by 

district, based on available references.

7 The FRAQMD states that 100% of the 

rice that was planted was burned.8

 Available Acreage (acres) = 

[applicant’s eligible parcels (acres)] x [historic burn fraction (%)]

 Emission Factors (lbs/acre) listed in Section 303, take into account:

 

6 The 36,228 limit for available acreage represents the total acres of rice planted in the 

Feather River portion (South Sutter) of the SFNA in 1990, which FRAQMD selected as 

its “representative year.” See Sacramento Federal Non-Attainment Area Rice Straw 

Emission Reduction Credit Model Rule Support Document (“White Paper”), October 16, 

2008, page 12 and 16. 

7

Ibid, pages 3 and 11.

8 Staff Report, Rule 10.9: Rice Straw Emission Reduction Credits and Banking, August 

22, 2014, pp 2-3.
5

[fuel loading9(tons of rice straw burned/acre)] x [Jenkins’ emission 

factors10 for rice straw burning (lbs pollutant/tons of rice straw burned)]11

Therefore, Annual Emission Reduction (lbs) = Available Acreage (acres) x Emission 

Factor (lbs/acre) x 75%.

Consistent with state requirements, Rule 10.9 also apportions the annual emission 

reductions into quarters based on the historic rice growing and burn practices within the 

district. 

Rule 10.9 includes several sections regarding burn restrictions. Section C.6 requires a 

deed restriction be placed on the parcel and prohibits burning that is not consistent with 

the ERC certificate. Section C.7 requires FRAQMD to place a parcel or group of 

contiguous parcels on a “restricted burn list” prior to issuing an ERC, and that no 

agricultural burn permit may be issued for more than 25% of the rice growing acreage of 

any parcel on the restricted burn list. Section C.8 states that no one shall burn on more 

than 25% of the rice growing acreage of a parcel that has received an ERC certificate 

pursuant to Rule 10.9.

A rice growing parcel owner who previously obtained state rice straw ERCs pursuant to

Rule 10.2 Emission Reduction Credit and Banking, may re-apply under Rule 10.9 to have 

these previous ERCs re-certified as federal ERCs under this rule. The applicant must

surrender all previous certificates issued for rice straw burning on those parcels before an 

ERC can be reissued.

Applicants are also required to maintain, for a minimum of five years, records on the

amount of acres planted and burned, as well as the type of crop grown. The District is 

required to conduct a program evaluation and provide a report to EPA within two years 

of rule adoption.

EPA REVIEW CRITERIA: EPA generally considers three criteria in evaluating state 

and local prohibitory rules for approval into the SIP. For this rulemaking, we are 

considering two additional criteria. 

 

9 Fuel loading from rice is 3.0 tons/acre. See White Paper, Table A2-Emission factors, 

page 16.

10 The emission factors (sometimes referred to as Jenkins II emission factors) come from 

a California Air Resources Board (CARB) memo, which was originally released 

8/17/2000 and updated 9/12/2000. The factors in the memo are cited as being 

predominately from Bryan Jenkins’ report entitled, “Atmospheric Pollutant Emission 

Factors from Open Burning of Agricultural and Forest Biomass by Wind Tunnel 

Simulations,” 1996, UC Davis. 

11 White Paper, p 3.
6

1. Enforceability - Section 110(a) of the CAA requires enforceable SIP requirements. 

Several EPA guidance documents are used to evaluate rule enforceability, 

including the “Bluebook” (Issues Relating to VOC Regulation Cutpoints, 

Deficiencies, and Clarification to Appendix D, November 24, 1978, 52 FR 45044)

and EPA Region IX’s Guidance Document for Correcting Common VOC and 

Other Rule Deficiencies (August 21, 2001, the “Little Bluebook”).

2. Non-interference - CAA §110(l) prohibits EPA from approving any SIP revision 

that would interfere with any applicable requirement concerning attainment and 

reasonable further progress (RFP) or any other applicable requirement of the CAA. 

In addition, CAA §193 prohibits the modification of any SIP-approved control 

requirement in effect before November 15, 1990, in a nonattainment area.

3. Stringency - Section 182(b)(2) of the CAA requires certain SIP rules to apply 

Reasonably Available Control Technology (RACT) in ozone nonattainment areas. 

Other sections of the Act require other control levels. 

4. New Source Review – Section 173(c) of the CAA and 40 CFR Part 51, Appendix 

S, “Emission Offset Interpretative Ruling” require certain sources to obtain 

emission reductions to offset increased emissions from new projects. 

5. Economic Incentive Programs - EPA published the guidance, “Improving Air 

Quality with Economic Incentive Programs” on January 2001 (EPA-452/R-01-

001). This guidance applies to discretionary economic incentive programs (EIPs) 

and represents the agency’s interpretation of what EIPs should contain in order to 

meet the requirements of the CAA. Because this guidance is non-binding and does 

not represent final agency action, EPA is using the guidance as an initial screen to 

determine whether potential approvability issues arise.

EPA EVALUATION: Rule 10.9 complies with the evaluation criteria as discussed 

briefly below.

1. Enforceability - The applicability and requirements of Rule 10.9 are generally clear 

and consistent with the Bluebook and other relevant EPA guidance regarding 

enforceability. Rule 10.9 includes references to other FRAQMD rules. We 

evaluated the referenced rules to determine the purpose of the reference, whether 

the rules were SIP approved, and whether the rules affected the criteria, standards, 

and procedures for generating valid ERCs under Rule 10.9. We determined that 

these references did not affect the approvability of the rule. 

2. Non-interference – Rule 10.9 does not replace any existing rule currently in the 

SIP. Therefore, approval of this rule will not interfere with any applicable 

requirement concerning attainment and reasonable further progress (RFP) or any 

other applicable requirement of the CAA. 
7

3. Stringency - None of these CAA sections apply to Rule 10.9, so stringency is not 

being used to evaluate for SIP approval.

4. New Source Review – Emission reductions to be used as NSR offsets must be 

surplus, quantifiable, enforceable, and permanent. 

In order for emission reductions from the curtailment of rice straw burning to be 

considered surplus, the emissions from this source category must be clearly and 

accurately quantified in the baseline emissions inventory and in future-year 

projections of the emissions inventory used in the attainment demonstration. This 

would be verified at the time of generation, pursuant to District Rule 10.1 New 

Source Review. The South Sutter County area of the District is part of the 

Sacramento Federal Nonattainment Area (SFNA). SFNA has updated their ozone 

emissions inventories to include agricultural burning, including rice straw 

burning.12 In addition, the Yuba City-Marysville PM2.5 Maintenance Plan 

included emissions from PM10, NOx and SOx ERCs in the future year (2017 and 

2024) inventories. 13

In addition, the emission reductions created under Rule 10.9 must not be relied 

upon in any attainment or progress plans. Although CH&SC 41865 requires the 

curtailment of rice straw burning, these emission reductions are not being relied 

upon to demonstrate attainment, RFP or any other purpose and can therefore be 

considered surplus. 

Rule 10.9 meets the quantification criteria because it includes a methodology to 

quantify emissions and emission reductions in Sections C.2, C.3, and C.4. The

emission factors and fuel loading factor come from a CARB memo that relies 

primarily on a 1996 paper by Bryan Jenkins of U.C. Davis. The determination of 

acreage which historically grew rice and burned rice straw is based on 

documentation such as the grower’s rice sales record, U.S. Department of 

Agriculture data on rice planting, air district burn permits, log books, and pictures. 

The emission reductions are permanent and enforceable because the owner of the 

parcel, who has been issued an ERC under Rule 10.9, is subject to the 

requirements of the rule, including the requirement to burn no more than 25% of 

the rice growing acreage. Should the property change ownership, a deed 

restriction filed with the assessor’s office would alert subsequent owners that they 

 

12 Tables A6-1 and A6-2, Appendix A6: Emission Reduction Credits, 2012 SIP Revisions 

to the Sacramento Regional 8-hour Ozone Attainment and Reasonable Further Progress 

Plan, September 26, 2013.

13 Email from Tim Mitro, FRAQMD to Nancy Levin, EPA RE: Rice Straw ERC Rule, 

September 8, 2014.
8

cannot burn more the 25% of the rice growing acreage in any given year. Rule 

10.9 is consistent with the Model Rule for Rice Straw ERCs (See Attachment 3).

5. Economic Incentive Program - Several fundamental principles described in the 

guidance include integrity (credits are based upon emission reductions which are 

surplus, enforceable, quantifiable, and permanent), equity, and environmental 

benefit. The integrity principle is the same as those described under NSR

evaluation and described above. This rule generates emissions offsets for the NSR 

program and does not raise any equity issues that are different from the NSR 

program in general. The environmental benefit has been addressed in the offset 

ratio defined by the NSR program. 

EPA ACTION: EPA staff recommends full approval of the submitted version of Rule 

10.9 because it complies with all relevant CAA requirements and is consistent with 

EPA’s guidance for NSR and economic incentive programs. 

REFERENCES:

1. “Issues Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations,” 

(a.k.a., Bluebook) EPA OAQPS, May 25, 1988 (web citation).

2. “Guidance Document for Correcting Common VOC & Other Rule Deficiencies,” 

(a.k.a., Little Bluebook), EPA Region 9, August 21, 2001 

(http://www.epa.gov/region09/air/sips/littlebluebook2001.pdf).

ATTACHMENTS:

1. FRAQMD Rule 10.9, “Rice Straw Emission Reduction Credits,” adopted on 

October 6, 2014 and submitted by CARB to EPA on November 6, 2014.

2. “Improving Air Quality with Economic Incentive Programs,” January 2001, EPA452/R-01-001 (cover only; text at 

http://www.epa.gov/ttn/oarpg/t1/memoranda/eipfin.pdf).

3. Rice Straw Emission Reduction Credit Model Rule Support Document (White 

Paper), Sacramento Federal Non-Attainment Area, October 16, 2008.

4. Memo dated December 3, 2014 from Nancy Levin, EPA Rules Office, to proposed 

rulemaking file, “FRAQMD Attainment Status and ERCs.”
9

ATTACHMENT 4

MEMORANDUM

Date: December 3, 2014

Subject: FRAQMD Attainment Status & ERCs

From: Nancy Levin, EPA Region 9 Air Division, Rules Office, AIR-4

To: File for Proposed Rulemaking on FRAQMD Rule 10.9

If FRAQMD Rule 10.9 is approved into the SIP, it will provide for the generation of 

federally-enforceable Emission Reduction Credits (ERCs) for VOC, NOx, PM10, PM2.5, 

CO, and SO2. FRAQMD’s is only nonattainment for ozone after December 2014. The 

following describes the area’s current federal attainment status, as well as where and how 

these ERCs can be used. This analysis takes into account the fact that FRAQMD may be 

in federal attainment (e.g., where no offsets are required for federal New Source Review 

(NSR)) yet sources in the area may be subject to more stringent state offset requirements 

embedded in the SIP-approved NSR rule. The more stringent state requirements are 

typically implemented by having a lower emissions threshold for requiring offsets.

VOC and NOx as ozone precursors (1-hour and 1997 and 2008 8-hour Ozone NAAQS)

 Portions of FRAQMD are classified as federal nonattainment for the 1-hour and 

the 1997 and 2008 8-hour ozone NAAQS.

 VOC and NOx are precursors to ozone.

 Therefore, VOC and NOx ERCs can be used for sources located within the 

Feather River ozone nonattainment area downwind federal nonattainment if 

certain conditions are met.

 These VOC and NOx ERCs could also be used to meet more stringent state VOC 

and NOx offset requirements embedded in FRAQMD’s NSR rule.

PM10

 FRAQMD is classified as federal attainment for the PM10 NAAQS.

 Because these PM10 ERCs are being generated in an area that is in federal 

attainment, under the CAA, these PM10 ERCs cannot be used as NSR offsets in 

any federal nonattainment area.

 These PM10 ERCs could be used to meet more stringent state PM10 offset 

requirements embedded in FRAQMD’s NSR rule or in any other area in 

accordance with state law.

PM2.5

 FRAQMD is classified as federal attainment for the PM2.5 NAAQS. Because 

these PM2.5 ERCs are being generated in an area that is in federal attainment, 

under the CAA, these PM2.5 ERCs cannot be used as NSR offsets in any federal 

nonattainment area.

 These PM2.5 ERCs could be used to meet more stringent state PM2.5 offset 

requirements embedded in FRAQMD’s NSR rule or in any other area in 

accordance with state law.
10

.

CO

 FRAQMD (and the entire state) is classified as federal attainment for CO.

 The CO ERCs could be used to meet more stringent state offset requirements 

embedded in FRAQMD’s NSR rule or in any other area in accordance with state 

law.

SO2

 FRAQMD is classified as federal attainment for SO2.

 SO2 is a precursor to both PM10 and PM2.5.

 Because FRAQMD is in federal attainment for PM10, the SO2 ERCs could be 

used for more stringent state offset requirements in FRAQMD, but cannot be used 

as PM10 offsets in any federal PM10 nonattainment area.

 Because FRAQMD is a federal attainment area for PM2.5, the SO2 ERCs could 

be used for more stringent state offset requirements in FRAQMD, but cannot be 

used as PM2.5 offsets in any federal PM2.5 nonattainment area.

NO2

 FRAQMD is classified as federal attainment for NO2.

 NO2 is a precursor to PM2.5 and ozone (see above).

 Because FRAQMD is a federal attainment area for PM2.5, the NO2 ERCs could

not be used as PM2.5 offsets.