# Antelope Valley Air Quality Management District

Final 

# Staff Report

Adoption of 

# Rule 107 – Certification of Submissions and Emission Statements

Adopted on May 15, 2012

43301 D IVISION 

### S T 

### ., S UITE 

### 206, L ANCASTER 

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### 93535-4649 P HONE 

### (661) 723-8070 FAX (661) 723-3450This page intentionally left blank.AVAQMD Rule 107 TC

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Final Staff Report, 06/15/12 

### STAFF REPORT TABLE OF CONTENTS Rule 107 – Certification of Submissions and Emission Statement s
I. PURPOSE OF STAFF REPORT ...................

................................................... .....................1

II. EXECUTIVE SUMMARY.........................

................................................... ........................1

III. STAFF RECOMMENDATION ......................

................................................... ...................1
IV. LEGAL REQUIREMENTS CHECKLIST..............

................................................... ..........2
V. DISCUSSION OF LEGAL REQUIREMENTS ..........

................................................... ......3 A. REQUIRED ELEMENTS/FINDINGS..................

................................................... ......3 1. State Findings Required for Adoption of Rule s & Regulations ......................3 a. Necessity ...................................

................................................... ........3 b. Authority...................................

................................................... ........3 c. Clarity.....................................

................................................... ...........3 d. Consistency.................................

................................................... ......3 e. Non-duplication .............................

................................................... ...3 f. Reference...................................

................................................... ........4 g. Public Notice & Comment, Public Hearing..... ....................................4 2. Federal Elements (SIP Submittals, Other Fede ral Submittals)........................4 a. Satisfaction of Underlying Federal Requireme nts ...............................4 b. Public Notice and Comment................... .............................................4 c. Availability of Document.................... .................................................4 d. Notice to Specified Entities ................ .................................................4 e. Public Hearing...............................

................................................... .....4 f. Legal Authority to Adopt and Implement ...... ......................................5 g. Applicable State Laws and Regulations Were F ollowed.....................5 B. WRITTEN ANALYSIS OF EXISTING REQUIREMENTS... ......................................5
C. ECONOMIC ANALYSIS ...........................

................................................... ................5 1. General.....................................

................................................... .....................5 2. Incremental Cost Effectiveness.............

................................................... .......5 D. ENVIRONMENTAL ANALYSIS (CEQA) ...............

................................................... 6
E. SUPPLEMENTAL ENVIRONMENTAL ANALYSIS ......... ........................................6 1. Potential Environmental Impacts.............

................................................... .....6 2. Mitigation of Impacts.......................

................................................... .............6 3. Alternative Methods of Compliance...........

................................................... ..6TC

- 2 AVAQMD Rule 107 Final Staff Report, 06/15/12 F. PUBLIC REVIEW ...............................

................................................... ........................6

VI. TECHNICAL DISCUSSION ......................

................................................... ......................6
A. SOURCE DESCRIPTION ..........................

................................................... ................6
B. EMISSIONS ...................................

................................................... .............................7 C. CONTROL REQUIREMENTS........................

................................................... ...........7
D. PROPOSED RULE SUMMARY.......................

................................................... .........7
E. SIP HISTORY.................................

................................................... .............................8 1. SIP History.................................

................................................... ...................8 2. SIP Analysis................................

................................................... ..................8 Appendix A – Rule 107 Iterated Version .............

................................................... ....................A-1 Appendix B - Public Notice Documents ...............

................................................... ...................B-1 Appendix C - Public Comments and Responses .........

................................................... .............C-1 Appendix D - California Environmental Quality Act D ocumentation ....................................... .D-1 Appendix E - Bibliography..........................

................................................... .............................E-1AVAQMD Rule 107 1

Final Staff Report, 06/15/12 

### STAFF REPORT

Rule 107 - Certification of Submissions and Emission Statement s
I. PURPOSE OF STAFF REPORT A staff report serves several discrete purposes. I ts primary purpose is to provide a summary and background material to the members of the Governing Board. This allows the members of the Governing Board to be fully informed before making any required decision. It also provides the documentation necessary for the Governing Board to make any findings, which are required by law to be made prior to the approval or adoption of a docu ment. In addition, a staff report ensures that the correct procedures and proper documentation for app roval or adoption of a document have been performed. Finally, the staff report provides evid ence for defense against legal challenges regarding the propriety of the approval or adoption of the do cument.
II. EXECUTIVE SUMMARY On July 1, 1997 the Antelope Valley Air Pollution C ontrol District (AVAPCD) was created pursuant to statute (former H&S Code §40106, A.B. 266-Knight Ch . 542, statutes of 1996) and assumed all air pollution control responsibilities from the South C oast Air Quality Management District (SCAQMD) for the area of Los Angeles County outside the Sout h Coast Air Basin (SCAB). On January 1, 2002 the Antelope Valley Air Quality Management District (AV AQMD) was created pursuant to statute (H&S Code §41300 et seq.) to replace the AVAPCD. The proposed adoption of Rule 107 – Certification of Submissions and Emission Statement s will implement the requirements of the Federal Clean Air Act (FCAA) Section 182 (a)(3)(B)(i) which requires that states with areas designated as nonat tainment for ozone require emissions data from sources of oxides of nitrogen and volatile organic compounds (VOCs) located in the nonattainment areas. The District also has the authority pursuan t to the California Health and Safety (H&S) Code §§ 40702, 41511, 42303, 30607 and 44340 to require the owners or operators of facilities which operate under District permits to submit emission statement s. The AVAQMD currently requests and collects emission statements pursuant to reporting requirements. This rule merely formalizes the current procedure i n rule format to meet the FCAA requirement.
III. STAFF RECOMMENDATION Staff recommends that the Governing Board of the An telope Valley Air Quality Management District adopt, after conducting a public hearing, a resolut ion approving the adoption of Rule 107 – Certification of Submissions and Emission Statement s. This rule will formalize the request for, and collection of, emission statements pursuant to FCAA requirements. The Governing Board of the Antelope Valley Air Qual ity Management District adopted Rule 107 – Certification of Submissions and Emission Statement s on May 15, 2012.2 AVAQMD Rule 107 Final Staff Report, 06/15/12 IV. LEGAL REQUIREMENTS CHECKLIST The findings and analysis as indicated below are re quired for the procedurally correct adoption of Rul e 107 - Certification of Submissions and Emission Statement s . Each item is discussed, if applicable, in Section V below. Copies of documents are included in the appropriate Appendix.

FINDINGS REQUIRED FOR RULES & REGULATIONS
X Necessity
X Authority
X Clarity
X Consistency
X Non-duplication
X Reference
X Public Notice & Comment
X Public Hearing

REQUIREMENTS FOR STATE IMPLEMENTATION PLAN SUBMISSION (SIP):
X Public Notice & Comment
X Availability of Document
X Notice to Specified Entities (State, Air Districts, USEPA, Other States)
X Public Hearing
X Legal Authority to adopt and implement the document.
X Applicable State laws and regulations were followed. ELEMENTS OF A FEDERAL SUBMISSION
N/A Elements as set forth in applicable Federal law or regulations.
CALIFORNIA ENVIRONMENTAL QUALITY ACT REQUIREMENTS (CEQA):
N/A Ministerial Action
X Exemption
N/A Negative Declaration
N/A Environmental Impact Report
X Appropriate findings, if necessary.
X Public Notice & Comment

SUPPLEMENTAL ENVIRONMENTAL ANALYSIS (RULES & REGULATIONS ONLY): X Environmental impacts of compliance.
N/A Mitigation of impacts.
N/A Alternative methods of compliance.

OTHER:
N/A Written analysis of existing air pollution control requirements
N/A Economic Analysis
X Public ReviewAVAQMD Rule 107 3

Final Staff Report, 06/15/12 V. DISCUSSION OF LEGAL REQUIREMENTS A. REQUIRED ELEMENTS/FINDINGS This section discusses the State of California stat utory requirements that apply to the proposed adoption of Rule 107. These are actions, that need to be performed, and/or information, that must be provided in order to amend the rule in a pr ocedurally correct manner. 1. State Findings Required for Adoption of Rules & Regulations: Before adopting, amending, or repealing a rule or r egulation, the AVAQMD Governing Board is required to make findings of necessity, au thority, clarity, consistency, nonduplication, and reference based upon relevant info rmation presented at the hearing. The information below is provided to assist the AVAQMD Governing Board in making these findings. a. Necessity: The proposed adoption of Rule 107 is necessary to f ormalize the request for, and collection of, emission statements pursuant to FCAA requirements. b. Authority: The AVAQMD has the authority pursuant to H&S Code § 40702 to adopt, amend or repeal rules and regulations. c. Clarity: The proposed new rule is clear in that it is writte n so that the persons subject to the rule can easily understand the meaning. d. Consistency: The proposed adoption of Rule 107 is in harmony wit h, and not in conflict with or contradictory to, any state law or regulation, f ederal law or regulation, or court decisions because it formalizes the request for, an d collection of, emission statements pursuant to FCAA requirements. e. Non-duplication: The proposed adoption of Rule 107 does not impose t he same requirements as an existing state or federal law or regulation beca use it formalizes the request for, and collection of, emission statements pursuan t to FCAA requirements.4 AVAQMD Rule 107 Final Staff Report, 06/15/12 f. Reference: AVAQMD has the authority pursuant to H&S Code §4070 2 to adopt, amend or repeal rules and regulations. g. Public Notice & Comment, Public Hearing: Notice for the public hearing for the proposed adop tion of Rule 107 was published April 2, 2012. See Appendix “B” for a co py of the public notice. See Appendix C for copies of comments, if any, and AVAQ MD responses. 2. Federal Elements (SIP Submittals, Other Federal Submittals). Submittals to USEPA are required to include various elements depending upon the type of document submitted and the underlying federal la w which requires the submittal. The information below indicates which elements are required for the proposed adoption of Rule 107 and how they were satisfied. a. Satisfaction of Underlying Federal Requirements: The adoption of proposed new Rule 107 is subject to all the requirements for a SIP submittal because the FCAA requires that states with areas designated as nonattainment for ozone require emission statement data from sources of oxides of nitrogen and volatile organic compounds (VOCs) i n the nonattainment areas, regardless of the classification. Therefore the AV AQMD will request that Rule 107 be included in the SIP. The criteria for deter mining completeness of SIP submissions are set forth in 40 CFR Part 51, Append ix V, 2.0.
b. Public Notice and Comment: Notice for the public hearing for the proposed adop tion of Rule 107 was published April 2, 2012. See Appendix “B” for a copy of the public notice. c. Availability of Document: Copies of proposed new Rule 107 and the accompanyin g draft staff report was made available to the public on March 27, 2012. d. Notice to Specified Entities Copies of proposed new Rule 107 and the accompanyin g draft staff report will be mailed to all affected agencies, including but n ot limited to CARB and USEPA on March 27, 2012. e. Public Hearing: A public hearing to consider the proposed adoption of Rule 107 was conducted on May 15, 2012.AVAQMD Rule 107 5

Final Staff Report, 06/15/12

f. Legal Authority to Adopt and Implement: The AVAQMD has the authority pursuant to H&S Code § 40702 to adopt, amend, or repeal rules and regulations and to do su ch acts as may be necessary or proper to execute the duties imposed upon the AV AQMD. g. Applicable State Laws and Regulations Were Follo wed: Public notice and hearing procedures pursuant to H& S Code §§40725-40728 have been followed. See Section (V)(A)(1) above fo r compliance with state findings required pursuant to H&S Code §40727. See Section (V)(B) below for compliance with the required analysis of existing r equirements pursuant to H&S Code §40727.2. See Section (V)(C) for compliance w ith economic analysis requirements pursuant to H&S Code §40920.6. See Se ction (V)(D) below for compliance with provisions of the California Enviro nmental Quality Act (CEQA). B. WRITTEN ANALYSIS OF EXISTING REQUIREMENTS H&S Code §40727.2 requires air districts to prepare a written analysis of all existing federal air pollution control requirements that apply to the sa me equipment or source type as the rule proposed for modification by the District. The FCA A requires that states with areas designated as nonattainment for ozone require emission stateme nt data from sources of oxides of nitrogen and volatile organic compounds (VOCs) in the nonatt ainment areas, regardless of the classification. The proposed adoption of Rule 107 will formalize the request for, and collection of, emission statements pursuant to FCAA requiremen ts. This is an administrative rule, and does not impose any pollution control requirements. Therefore the preparation of a written analysis of existing pollution control requirements that apply to the same equipment or source type is not required.
C. ECONOMIC ANALYSIS 1. General Proposed new Rule 107 will not have an adverse econ omic impact on the entities subject to the proposed rule. The AVAQMD currently requests and collects emission statements pursuant to reporting requirements. Thi s rule simply formalizes the current procedure in rule format to meet the FCAA requireme nt. 2. Incremental Cost Effectiveness Pursuant to H&S Code §40920.6, incremental cost eff ectiveness calculations are required for rules and regulations which are adopte d or amended to meet the California Clean Air Act requirements for Best Available Retro fit Control Technology (BARCT) or “all feasible measures” to control volatile comp ounds, oxides of nitrogen or oxides of sulfur.6 AVAQMD Rule 107 Final Staff Report, 06/15/12 The proposed adoption of Rule 107 is not subject to incremental cost effectiveness calculations because this rule does not impose BARC T or “all feasible measures”. D. ENVIRONMENTAL ANALYSIS (CEQA) Through the process described below, it was determi ned that a Notice of Exemption would be the appropriate CEQA process for the proposed adopt ion of Rule 107. 1. The proposed adoption of Rule 107 meets the CEQA definition of “project.” They are not “ministerial” actions. 2. The proposed adoption of Rule 107 is exempt from CEQA review because this rule is administrative in nature, and there is no p otential that the adoption might cause the release of additional air contaminants or create any adverse environmental impacts. Therefore, a Class 8 catego rical exemption (14 Cal. Code Reg. §15308) applies.
E. SUPPLEMENTAL ENVIRONMENTAL ANALYSIS 1. Potential Environmental Impacts The proposed adoption of new Rule 107 does not have any potential impact because the rule is administrative in nature and specifies cert ification of documents and submission requirements of emissions statements. Therefore, t his rule does not have any impact upon the emission of air contaminants. 2. Mitigation of Impacts
N/A 3. Alternative Methods of Compliance
N/A
F. PUBLIC REVIEW See Staff Report Section (V)(A)(1)(g) and (2)(b), a s well as Appendix B.
VI. TECHNICAL DISCUSSION
A. SOURCE DESCRIPTION Rule 107 applies to all official documents submitte d to the District. All official documents shall contain a certification signed and dated by a responsible official of the company, which attests that the information contained in the submi tted documents is accurate to the best knowledge of the individual certifying the submissi on. The District currently requires certification consistent with the proposed rule on documents submitted, including, but not limited to: permit applications; cancellation docu ments; response documents from the notice toAVAQMD Rule 107 7

Final Staff Report, 06/15/12 comply and notice of violation compliance program; test reports; emission statements; and, submissions for the variance program. Rule 107 also requires the owner or operator of a s tationary source that emits or may emit oxides of nitrogen and VOCs provide the APCO with a written statement showing the actual emissions of oxides of nitrogen and VOCs from that source, pursuant to the requirements of FCAA § 182 (a)(3)(B)(i). At a minimum, the emissio n statement shall be submitted as specified in the transaction format detailed in the CARB “California Emission Inventory Development and Reporting System.” The existing in ventory program is consistent with the proposed rule, and no additional statements will be required as a result of the rule adoption. Any class of stationary sources which emit less tha n 25 tons per year of oxides of nitrogen or VOCs may be exempted from submitting an emission st atement if the District provides CARB with an inventory of sources emitting greater than 10 tons per year of nitrogen oxides or VOCs.
B. EMISSIONS Rule 107 is an administrative rule, and as such, wi ll have no effect on emission or emission limits and will merely specify certification of doc uments and submission requirements of emissions statements. C. CONTROL REQUIREMENTS Rule 107 is an administrative rule specifying certi fication of submissions and submission requirements of emission statements. Rule 107 does not impose any control requirements.
D. PROPOSED RULE SUMMARY This section gives a brief overview of proposed new Rule 107. Section (A) – Submission Certification
All official documents shall contain a certificatio n signed and dated by a responsible official of the company, which attests that the inf ormation contained in the submitted documents is accurate to the best knowledge of the individual certifying the submission. Section (B) – Emission Statement The owner or operator of a stationary source that e mits or may emit oxides of nitrogen and VOCs provide the APCO with a written statement showing the actual emissions of oxides of nitrogen and VOCs from that source, pursu ant to the requirements of FCAA § 182 (a)(3)(B)(i). At a minimum, the emission state ment shall be submitted as specified in the transaction format detailed in the CARB “Cal ifornia Emission Inventory Development and Reporting System 2.5 (CEIDARS2.5) T ransaction Format,” September 1, 2005 found at http://www.arb.ca.gov/ei /drei/maintain/database.htm8 AVAQMD Rule 107 Final Staff Report, 06/15/12 Any class of stationary sources which emit less tha n 25 tons per year of oxides of nitrogen or VOCs may be exempted from submitting an emission statement if the District provides CARB with an inventory of sources emitting greater than 10 tons per year of nitrogen oxides or VOCs.
E. SIP HISTORY 1. SIP History.
Rule 107 is a new rule. 2. SIP Analysis. The AVAQMD will request that CARV submit Rule 107 – Certification of Submissions and Emission Statements as a new rule for inclusion in the State Implement ation Plan.AVAQMD Rule 107 A

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### APPENDIX "A"

Rule 107 - Certification of Submissions and Emission Statement s



### Iterated Version

The iterated version is provided so that the change s to an existing rule may be easily found. The man ner of differentiating text is as follows:
1. Underlined text

identifies new or revised language. 2. Lined out text identifies language which is bein g deleted. 3. Normal text identifies the current language of t he current rule which will remain unchanged by the adoption of the proposed amendments.
4. Italicized text

identifies explanatory material that is not part o f the proposed language.A-2 AVAQMD Rule 107 Final Staff Report, 06/15/12 This page intentionally left blank.(Adopted mm/dd/yy)

AVAQMD Rule 107 107-1 Certification of Submissions and Emission Statement s d2, 04/12/12 

## RULE 107 1 

## Certification of Submissions and Emission Statement s
(A) Submission Certification
(1) All official documents submitted to the Antelop e Valley Air Pollution Control District (District) shall contain a certification signed and dated by a responsible official of the company. This certification must attest that the i nformation contained in the submitted documents is accurate to the best knowledge of the individual certifying the submission. The requirements of this Section apply to, but are not limited to, the emissions statements required in Section (B)(1). 

### (B) Emission Statement
(1) In accordance with the requirements of the 1990 Clean Air Act (Section 182 (a)(3)(B)(i)), the owner or operator of any station ary source that emits or may emit oxides of nitrogen or Volatile Organic Compounds (V OCs) shall provide the Air Pollution Control Officer (APCO) with a written sta tement showing actual emissions of oxides of nitrogen and reactive organ ic compounds VOCs from that source. At a minimum the emission statement shall be submitted a s specified in the transaction format detailed in the California Air Resources Boa rd’s “California Emission Inventory Development and Reporting System.” The emission st atement shall contain emission data for the time period specified by the APCO. Em ission statements shall be submitted annually. [Derived from 42 U.S.C. §7511a.] (2) The APCO may waive the requirements of Section (B)(1) for any class or category of stationary sources which emit less than 25 tons per year of oxides of nitrogen or reactive organic compounds. The waiver is contingent on the District providing the California Air Resources Board with an inventory of sources em itting greater than 10 tons per year of nitrogen oxides or VOCs based on the use of emis sion factors acceptable to the California Air Resources Board and the United States Environmental Protection Agency

. [Derived from FCAA §182(a)(3)(B)(i). “USEPA” added in response to USEPA comment email of 04/19/12.] ]

See SIP Table at http://www.avaqmd.ca.gov/Modules/ShowDocument.aspx? documentid=921

1 This Rule is derived from Mojave Desert Air Qualit y Management District Rule 107 as adopted 09/17/92 unless otherwise noted.107-2 AVAQMD Rule 107 Certification of Submissions and Emission Statement s d2, 04/12/12 This page intentionally left blank.AVAQMD Rule 107 B

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### APPENDIX "B" PUBLIC NOTICE DOCUMENTS

1. Proof of Publication for Notice of Public Hearing – Antelope Valley Press, published April 2, 2012B-2 AVAQMD Rule 107 Final Staff Report, 06/15/12 This page intentionally left blank.AVAQMD Rule 107 B

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### APPENDIX "C"

PUBLIC COMMENTS AND RESPONSES

1. Transmittal of ARB Staff Rule Review Comments, Apri l 6, 2012 2. Los Angeles County Sanitation Department email, Apr il 12, 2012 3. United States Environmental Protection Agency email , April 19, 2012C-2 AVAQMD Rule 107 Final Staff Report, 06/15/12 This page intentionally left blank.AVAQMD Rule 107 C

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Final Staff Report, 06/15/12 1. Comment Letter 1C-4 AVAQMD Rule 107 Final Staff Report, 06/15/12 1

2AVAQMD Rule 107 C

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Final Staff Report, 06/15/12 1. Key to Appendix “A” has been updated to properly reflect current conventions of differentiating new and amended rule text in draft rules. 2. Appendix “E” bibliography updated to reflect comple te document name and web address. 1. District Response to Comment Letter 1C-6 AVAQMD Rule 107 Final Staff Report, 06/15/12 This page intentionally left blank.AVAQMD Rule 107 C

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2 2. Comment email 2C-8 AVAQMD Rule 107 Final Staff Report, 06/15/12 1. Usage of term “reactive organic compounds” has been changed to VOC in section (B)(2) for consistency. 2. The proposed rule language is derived from a very s imilar emissions statement rule adopted in the Mojave Desert AQMD in the 1990s. The clause in reference is a legacy of the state and local emissions inventory program from that era . In current practice as approved by the State of California, the District requires annual e mission inventories from all major NOx and VOC sources (25 tons per year and greater), and many smaller sources (including some sources emitting less than 10 tons per year), often due to emissions other than NOx and VOC. There is no local, State or Federal clause or requirement limiting emissions inventories to 10 tons per year and more. 2. District Response to Comment email 2AVAQMD Rule 107 C

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Final Staff Report, 06/15/12 3. Comment email 3

1

2a

3 2bC-10 AVAQMD Rule 107 Final Staff Report, 06/15/12 1. This rule is intended to implement the requireme nts of the Federal Clean Air Act Section 182(a)(3)(B). The AVAQMD currently requests and co llects comprehensive emission statements including criteria and toxic air polluta nts. This rule simply formalizes the current procedure in rule format to meet the FCAA requireme nt. 2a. The District prepares and provides an Emission Inventory guideline with required submission information reflective of the CARB guidelines. 2b. Currently, at the request of CARB, the AVAQMD r equests CEIDARS reporting to be submitted by April 30. This submission date is sub ject to change, and the District does not wish to reopen the rule subject to changing submiss ion date requirements. The District prepares and provides an Emission Inventory guideli ne with required submission dates reflective of the CARB guidelines. 3. Section (B)(2) has been modified to read “...based on emission factors acceptable to the California Air Resources Board and the United States Environmental Protection Agen cy .” 3. District Response to Comment email 3AVAQMD Rule 107 D

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### APPENDIX "D"

CALIFORNIA ENVIRONMENTAL QUALITY ACT

DOCUMENTATION

1. Notice of Exemption – Los Angeles CountyD-2 AVAQMD Rule 107 Final Staff Report, 06/15/12 This page intentionally left blank.AVAQMD Rule 107 D

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### APPENDIX "E" BIBLIOGRAPHY

The following documents were consulted in the prepa ration of this staff report and the proposed adoption of new Rule 107:

1. MDAQMD Rule 107 – Certification and Emission Statem ents, Adopted 09/14/92. 2. 69 FR 29113, May 26, 2004 (MDAQMD, Proposed Rule) 3. 69 FR 29880, May 26, 2004 (MDAQMD, Direct Final Rul e) 4. FCAA § 182 (a)(3)(B)(i) 5. H&S Code, §§ 40702, 41511, 42303, 30607 and 44340 6. California Emission Inventory Development and Repor ting System 2.5 (CEIDARS2.5) Transaction Format, September 1, 2005 found at http://www.arb.ca.gov/ei/drei/maintain/database.htmE-2 AVAQMD Rule 107 Final Staff Report, 06/15/12 This page intentionally left blank.