FEATHER RIVER AIR QUALITY MANAGEMENT DISTRICT MEMORANDUM 10/05 /2009

TO: FRAQMD BOARD OF DIRECTORS

FROM: David A Valler, Jr, APCO

SUBJECT: Adoption of Resolution # 200 9

- 03 , District Rule 10.1 New Source Review

BACKGROUND

The Feather River Air Quality Manage ment District’s (District) New Source Review (NSR) program was established in February 1993 to ensure that construction and operation of new and modified sources do es not interfere with progress towards attainment of the National and State Ambient Air Qual ity Standards. Because portions of the District have been designated as nonattainment for failure to meet the federal 8

- hour ground

- level ozone standard, the United States Environmental Protection Agency (USEPA) requires the District to implement measures to reduce sources of ozone and its precursors. The District makes its commitment to reduce pollution through the State Implementation Plan (SIP). The SIP is federally enforceable through USEPA and the Federal Clean Air Act (CAA). A New Source Review, o r Preconstruction Review, is required as part of the State Implementation Plan (SIP).

Regulation X, Rule 10.1 sets the requirements for reviewing permit applications for new and modified sources and requirements for Best Available Control Technology and of fsets. The rule also sets the calculation procedures for emission increases and reductions associated with new and modified stationary sources and/or emission units.

The purpose of the proposed amendments to Rule 10.1 are to address concerns regarding cons istency, clarity, and enforceability addressed by a review by the California Air Resources Board and make amendments such that the rule can be approved by USEPA for inclusion in the SIP.

PUBLIC PROCESS

In February 2009

, the District mailed a notice which i nvited the affected sources to participate in the workshop for the proposed amendments to Rule 10.1 and attend the public hearing for the adoption of this rule. A notice of the hearing was also published in the Appeal Democrat. T he District also sent a

c opy of the proposed R ule 10.1 to C alifornia A ir R esources B oard (CARB) and the E nvironmental Protection A gency (EPA). The District conducted a n informational workshop on February 20, 2009

, at 9: 00 a .m. in the Yuba County Government Center Conference Room # 2 , located at 915 8 th Street, Marysville, CA

. The District invited the public to submit written comments on the proposed rule

. The District did any written comments from the public

. Prior to the April 6 hearing, significant comments were received from E PA regarding approval into the SIP. The District decided to continue the hearing until the regular board meeting on June 1, 2009. More comments were received from EPA regarding approval into the SIP and more significant changes were made. Subsequently, the hearing was continued to August 3, 2009 and again to October 5, 2009 to address these issues. A public notice was sent to all permitted sources and was published in the Appeal Democrat on August 28, 2009 to invite comments from the public on the propo sed rule. N o comments from the public have been received.PROPOSAL

Staff has determined a necessity to amend Regulation X, Rule 10.1 in order to comply with SIP requirements and to improve the overall clarity consistency and enforceability. Furthermore, the District has determined a necessity to separate and clarify certain state and federal requirements. The previous version of this regulation submitted for SIP approval was adopted in February of 1993. To date the USEPA has not taken action on the rule . Since the 1993 submittal, Rule 10.1 has been modified to meet ozone nonattainment requirements and transportation mitigation control requirements. The proposed amendments do not impose more stringent or more relaxed requirements for Best Availabl e Cont rol Technology or offsets. The proposed amendments clarify and improve enfo rceability of these requirements. Additionally, the proposed amendments clarify BACT and offset applicability when a source is determined to be subject to a federal operating perm it.

FISCAL IMPACT

The proposed rule will not result in any additional need for staff resources

The amendments to rule 10.1 do not impose new requirements to businesses or stationary sources. Therefore the District does not believe any additional costs wil l be imposed by the proposed amendments.

RECOMMENDATION

The District recommends the Board a pprove the attached resolution to adopt the proposed amendments to Rule 10. 1 New Source Review and to direct the APCO to submit only Sections A, B, C, D, E.1.a, E.2. a.1, E.2.b, E.2.c, E.2.d, E.2.e.1 Table 2, E.2.e.2, E.2.e.3, E.2.e.4 E.2.f, E.3, E.4, E.5, E.6, E.7, F, G, H.1, H.2, H.3, H.4, H.5, H.6, H.7.a, H.7.b, H.8, H.9, H.10, H.11, and I of the rule for inclusion in the SIP.

ATTACHMENTS

A. Staff Report

– Rule 10. 1 New Source Review

B . Rule 10.1 Resolution

, Resolution N o. 2009

- 03ATTACHMENT A

Staff Report

– Rule 10.1ATTACHMENT B

Rule 10.1 Proposed, Resolution No. 200 9

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