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 #2009-03, District Rule 10.1 New Source Review

BACKGROUND

The Feather River Air Quality Management District’s (District) New Source Review (NSR) program 

was established in February 1993 to ensure that construction and operation of new and modified 

sources does not interfere with progress towards attainment of the National and State Ambient Air 

Quality 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, or 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 offsets. 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 consistency, 

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 invited 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. The District also sent a 

copy of the proposed Rule 10.1 to California Air Resources Board (CARB) and the Environmental 

Protection Agency (EPA). The District conducted an informational workshop on February 20, 2009, 

at 9:00 a.m. in the Yuba County Government Center Conference Room #2, located at 915 8th 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 EPA 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 proposed rule. No 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 Available Control Technology or offsets. The proposed amendments clarify and improve

enforceability of these requirements. Additionally, the proposed amendments clarify BACT and 

offset applicability when a source is determined to be subject to a federal operating permit.

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 will be imposed by the proposed 

amendments.

RECOMMENDATION

The District recommends the Board approve 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 No. 2009-03
ATTACHMENT A

Staff Report – Rule 10.1
ATTACHMENT B

Rule 10.1 Proposed, Resolution No. 2009-03