# -San Joaquin Valley AIR POLLUTIONCONTROL DISTRICT

GOVERNING BOARD 

### DATE: TO: 

### FROM: September 17,2009 SJVUAPCD Governing Board ChrisVierra, Chair Councilmember, City of Ceres Tony Barba, Vice Chair Supervisor, Kings County 

### Seyed Sadredin, Executive ~irectoJ~~~0 Project Coordinator: Scott Nester David G. Ayers Councilmember, City of Hanford RE: ADOPT REVISED PROPOSEDAMENDMENTS TO RULE 4692 (COMMERCIAL CHARBROILING)AND ESTABLISH AN INCENTIVE GRANT PROGRAM FOR UNDER-FIRED CHARBROILERS JudithG. Case Supervisor, Fresno County Ronn Dominici Supervisor, Madera County HenryJay Forman, Ph.D. Appointed by Governor RECOMMENDATIONS: Jesus J. Gamboa Councilmember, City of Visalia 

### Adopt revised proposed amendments to Rule 4692 (Commercial Charbroiling). Ann Johnston Mayor, City of Stockton 

### Approve proposed pilot Charbroiler Incentive Program (ChlP) to fund the installation of particulate controls on under-fired charbroilers. Randy Miller Councilmember, City of Taft
Michael 6. Nelson Supervisor, MercedCounty 

### Authorize funding of the program for up to $500,000 and approve the use of Indirect Source Review (ISR) mitigation fees to fund incentive program. William O'Brien Supervisor, Stanislaus County Leroy Omellas Supervisor, SanJoaquinCounty 

### Direct the Air Pollution Control Officer to further investigate economic feasibility and availability of particulate controls for under-fired charbroilers and present an assessment to the Governing Board during the first quarter of 2011, including a recommendation on the need for further rulemaking for underfired charbroilers. John G. Telles, M.D. Appointedby Governor Raymond A. Watson Supervisor, Kern County J. Steven Worthley Supervisor. TulareCounty 

### Authorize the Chair to sign the attached Resolution. SeyedSadredin ExecutiveDirector Air PollutionControlOfficer BACKGROUND: Northern Region Office 4800 EnterpriseWay Modesto, CA 95356-8718 

### The San Joaquin Valley Air Basin has been designated by the United ~209)557.6400eFAX~2091557~6475 

### States Environmental ProtectionAgency (EPA) as a non-attainment

CentralRegionOffice 

### area for fine particulatematterwith aerodynamic diameter of 2.5 1990 East GettysburgAvenue 

### micrometers or less (PM2.5). Commercial cooking operations using Fresno, CA 93726.0244 (559) 230-6000 FAX 1559) 230.6061 

### charbroilerswere identified as a potential source for reducing these emissions and helpingthe District reach attainment. The District's 2008 Southern Region Office 34946 Flyover Court Bakersfield, CA 93308.9725 (661)392-5500 FAX (661)392.5585

www.valleyair. orgSJVUAPCD Governing Board ADOPT REVISED PROPOSED AMENDMENTS TO RULE 4692 (COMMERCIAL CHARBROILING) AND ESTABLISHAN INCENTIVE GRANT PROGRAMFOR UNDER-FIRED CHARBROILERS September 17,2009 

### PM2.5 Plan made a commitment to reduce PM2.5 emissions from charbroilers by about 2.2 tons per day. There have been three workshops to presentthe rule amendments and seek comments from the public before the proposed rule amendments were brought before ,the District's Governiug Board for adoption. The workshops were held in October 2008, February 2009, and April 2009. Although District staff sent over 6,000 workshop notices to restaurant operators throughout the Valley, participation in the workshops was extremely limited, likely because the bulk of the industry had not previously been regulated by the Valley Air District and is unaccustomedto participating in the rule development process. However, District staff made changes to the draft rule based on the concerns expressed by those operators who did attend the workshops. During theGoverning Board meeting on June 18, 2009, significant concerns were raised by the owners and operators of under-fired charbroilers regarding the economic feasibility and viability of the particulate controls proposed. As a result of the public comments, the Governing Board directed staff to meet with operators of under-fired charbroilers and other interested parties to address concerns. After meeting with control technology vendors and operators, District staff consideredthe new information received. It was determined that previous socioeconomic impact analysis did not reflect the true costs of compliance with the changes in the rule proposed in June and the cost of PM2.5 reductions was determined to be unreasonably high. District staff is, therefore, proposing that controls for under-fired charbroilers not be covered by the rule at this time, and that a pilot incentive grant program be initiated to advance development of under-fired charbroiler emissions control.
The controls for chain-driven charbroilers were found to be cost-effective and the technology has been in wide usage for a number of years. 'Therefore, today's proposed amendments contain the same requirements for those units as was initially proposed in June 2009.
In removing under-fired charbroilers from control requirements,the rule project will not achieve the target emission reduction in the District's 2008 PM2.5 Plan. The shortfall can be made up by extra reductions achieved in other rules. Rule projects other than the charbroiler rule have netted more than enough emission reductions to make up for the reduced rule effectiveness of the charbroiler rule project.

DISCUSSION: 

### Amending Rule 4692 (Commercial Charbroiling)would implement a control measure commitment in the District's 2008 PM2.5 Plan. Rule 4692 (Commercial Charbroiling) was originally adopted in 2002 and established emission control standards for chaindriven charbroilers. The smoke and vapors generated by cooking on a charbroiler contain water, volatile organic compounds (VOCs), and PM. Larger particles andSJVUAPCD Governing Board ADOPT REVISED PROPOSEDAMENDMENTS TO RULE4692 (COMMERCIAL CHARBROILING)AND ESTABLISHAN INCENTIVE GRANTPROGRAM FOR UNDER-FIREDCHARBROILERS September 7 7, 2009 

### grease from an under-fired charbroiler are typically captured by the grease filter of the ventilation hood over the charbroiler. The remaining VOCs and smaller PM are exhaustedto the atmosphere, unless a secondary control is installed.
The current rule allows ownerloperatorswho cook less than a certain amount of meat on their chain-driven units to be exemptfrom control requirements (limited-use units), althoughthe ownerloperators must demonstrate that they are exempt through weekly record-keeping



### . For chain-driven units, the proposed amendments would reduce the exemption threshold from 875,pounds per week to 400 pounds of meat cooked per week. In additionto the limited-useexemption, the rule would exempt low-emitting ("clean") units. Operators of larger chain-driven charbroilers already subjectto control requirements would not have any added requirements underthe proposed rule. The smaller operations that would become subject to the rule due to the proposed change in the exemption level would have about 15 monthsto install control equipment. Unlike under-fired charbroilers, the installation of chain-driven charbroiler control equipment is straightforward and essentially no structural changes are needed for the retrofit. The cost to retrofit chain-driven charbroilers is about $1,990 per year. Additionally, serious questions concerning the reliability and feasibility of under-fired charbroiler controls remainthat must be answered.
Need for Further Assessment 

### Control devices including HEPAfilters, electrostatic precipitators, and wet scrubbers appear to have promise for use with the under-fire charbroilers. However, in light of the new information that we have received and given the high cost of these controls for under-fired charbroilers, District staff cannot recommend these controls for the rule at this time. Reliable and verifiable information and more careful examination are neededtojudge these systems' reliability inthe field. Bay Area Air Quality Management District (BAAQMD) has already adopted a rulefor these units which will require controls beginning January 1, 2010. South Coast Air Quality Management District (SCAQMD) is also inthe process of adopting regulations for charbroilers which may include controls for under-fired charbroilers (expected adoption 

### - January 2010). The newly-adopted federal health-based standardfor PM2.5 will also mandate that the District adopt a new attainment plan in 2012, callingfor additional reductions in directly-emitted PM2.5. District staff will perform a comprehensive assessment benefitting from new and expanded information as these new controls are employed. As part of the assessment the following outstanding issueswill be evaluated:
Whether an under-fired charbroiler is included inthe kitchen appliances for facilities that vendors report as having these controls (some of these controls appear to be only serving fryers);SJVUAPCD Governing Board ADOPT REVISED PROPOSED AMENDMENTS TO RULE 4692 (COMMERCIAL CHARBROILING)AND ESTABLISHAN INCENTIVE GRANT PROGRAMFOR UNDER-FIRED CHARBROILERS September 7 7, 2009 

### The type of meat being charbroiled;
The actual amount of charbroiling done;
The length of time the control system has been in use; The size of the control system;
The costs and labor involved in routine operating and maintenance based on actual experience of the operators; and
Actual field data on control system reliability such as maintenance frequency, control efficiency, and frequency of equipment breakdown. As part of today's recommendations, the Air Pollution Control Officer will present a report about this assessment, including a recor~imendation on the need and feasibility for further rulemaking concerning under-fired charbroilers. This reportwill be presented to your Board in the first quarter of 2011. 

### Health Impact
As was the case with domestic wood burning, emissions from charbroiling are increasingly understood to pose a threat to public health. Charbroiling contributes a significant fraction of PM2.5 found in urban areas. In a Los Angeles study, estimated emissions of charbroiling ranged from 4,400 to 4,900 kglday vs. 1,400 kglday for eat frying. The authors estimated that approximately 21% 

### of all fine organic carbon (OC) particulates in the region originated with meat frying or charbroiling.

# ' A subsequent California Regional Particulate Air Quality Study (CRPAQS) study conducted in Fresno estimated that meat cooking contributed 6 to 14% of organic carbon aerosol found in the city.2~he same study found that charbroiled hamburger emits up to 40 grams of fine aerosol per kilogram of meat cooked versus 7 

### grams per kilogram for extra lean meat.
In addition to emission quantification, environmental health research has helped bring to focus the quality of charbroiling emissions and their attendant health hazards. Organic substances containing carbon and hydrogen produce polycyclic aromatic hydrocarbons (PAHs) during incomplete combustion (pyrolysis). 'The process of charbroiling, characterized by fat falling on either flame or charcoal, results in two to five times higher emissions of PAH by mass when compared with frying, an increase that is comparable to the greater overall PM2.5 emissions

See Hildemann et al. (1991) Environmental Science and Technoloay, Vol. 25, pp. 744-751. See Schauer and Cass (2000)Environmental Science and Technology, Vol. 34 (9),pp. 1821-1832.SJVUAPCD Governing Board ADOPT REVISED PROPOSEDAMENDMENTS TO RULE4692 (COMMERCIAL CHARBROILING) AND ESTABLISHAN INCENTIVE GRANT PROGRAMFOR UNDER-FIRED CHARBROILERS September 17, 2009 

### generated by charbroiling cited in the previous paragraph.33 In addition to having carcinogenic properties, these organic chemicals have been shown to promote oxidative stress in the lungs, resulting in altered lung function and capacity. For example, scientific evidence of suppressed lung function in Fresno asthmatics resulting from inhaled PAH (chrysenequinone)was presented by Tim Tyner of UCSF to your Board at the June 18,2009 Board meeting. The low wind speeds and chronic evening thermal inversions that characterize the San Joaquin Valley have the additional effect of limiting dispersion of emissions from commercial charbroiling. As with domestic wood burning, this potentialfor neighborhood-level concentration of emissions during evening or multi-day stagnation events raises environmental justice concerns, e.g. residential areas that border shopping centers where restaurants are located. To conclude, there is ample environmental health justification to begin the process of reducing public exposure to charbroiling emissions via the proposed incentive program. Past experience has shown that this inducement of demand will accelerate the development and cost-effectiveness of technological control options. Under-fired Charbroiler Incentive Grant Program (ChlP)
The Districtstaff is recommending ,that incentive funds in the form of grants be made available for the purpose of installing particulate control devices on existing under-fired charbroilers. The US EPA recognizes that there are circumstanceswhen additional emission reductions can be better achieved through economic incentives. This is especiallytrue in cases like this where control technology is expensive and is being newly applied to sources under consideration.
The District proposes to design a charbroiler incentive program that achieves maximum, cost-effectiveemissions reductions. Inthis program,the Districtwould not specify the control technology to be used, but, rather, would provide an incentive level based on cost-effectivenesswhile allowing the operatorto determine the best controltechnology for hislher operation. The level of incentive funding would depend on several factors, includingthe amount of meat being cooked, the project life, and cost-effectiveness of those reductions. The Districtwould enter into legally binding agreements with interestedoperators to ensurethat the emissions reductions occur over the life of the project. To make certain that the predicted emission reductions are achieved, the Districtwould employ a variety of methods, including, but not limited to, project audits, inspections, and annual reporting.
It is estimated that funding for each operationwill range from approximately $20,000 to $80,000, depending on the size of the operation and amount of meat cooked. On average, this would fund approximately 60% to 90% of the capital cost, including equipment and installation,depending on the specific control-technology selected by the

3 See Rogge et al. (1.991) Environmental Science and Technology, Vol. 25, pp. 11 12-1 125.SJVUAPCD Governing Board ADOPT REVISED PROPOSEDAMENDMENTS TO RULE 4692 (COMMERCIAL CHARBROILING) AND ESTABLISH AN INCENTIVE GRANTPROGRAM FOR UNDER-FIRED CHARBROILERS September 17, 2009 operator. The operator will be responsible for ongoing operational and maintenance costs. Although high ongoing operating costs may discourage some from participating in the incentive program, it is hoped that a number of operators would choose to participate given the rules in other areas and the likelihood that the Districtwill need additional reductions in the future. To gauge interest and need for funding, the staff recommends a pilot programfor up to 10 units operating overthe next 12 months. The District proposesto allocate up to $500,000 for this pilot program through a competitive solicitation. It is anticipatedthat funding for the programwill come from Indirect Source Review (ISR) fees generated by the District. Consequently, the program cost-effectiveness thresholds and will be established pursuantto the applicable cost-effectiveness limits in the ISR program. A more complete description of the proposed incentive grant program is attached.
Emission Reductions
In order to reach attainment, the District's 2008 PM2.5 Plan committed the Districtto achieving a specific amount of total emission reductions of directly-emitted PM2.5 and PM2.5 precursors from the Plan control measures as a whole. The Plan also included estimated reductionsfrom each measure contained in the Plan. Forthe charbroiler control measure, the Plan estimated a reduction of 2.2 tons per day of directly-emitted PM2.5. The Plan estimate erroneously applied the possible 90% control efficiency to the entire baseline emission inventory for this source category. The staff analysis accompanyingthe rule indicates that only 30% of the under-fired units would have been subject to the control measure as envisioned in the Plan. Despite the over-estimate, the District is obligated to achieve the total reductions committed to in the Plan. -The errors in the Plan estimate combined with the reduced effectivenessof the rule, as currently proposed, create a shortfall of approximately 2.2 tons per day of PM2.5.
The shortfall in emission reductionsfrom this rule project must be made up in order to reachthe goal of cleaner air for all Valley residents, and satisfy Clean Air Act requirements. Emission reduction shortfalls from a given control measure can be made up through other control measures achieving more reductions than planned. Recentlyadopted rules like Rule 4901 (Wood Burning Fireplaces and Wood Burning Heaters) and Rule 4354 (Glass Melting Furnaces)each reduced more directly-emitted PM2.5 than planned. Table 1 shows how a portion of the shortfallfrom this rule is made up with surplus reductions of directly emitted PM2.5 emission from other District rules.
The surplus directly-emitted PM2.5 from other rule projects would not be enough to offset the shortfall from this rule, by about 1.8 tons per day. Other rules adopted by your Board have achieved greater-than-expected reductions of PM2.5 precursors, oxides of nitrogen (NOx) and oxides of sulfur (SOX). These reductions can beweighted to PM2.5 equivalents. The ratiofor NOx is 2.63 tons of NOx per ton of PM2.5, and the ratio for SOXis 1.0 ton of SOXper ton of PM2.5. Tables 2 and 3 show the estimated surplus from NOx and SOXweighted as PM2.5 equivalents.SJVUAPCD Governing Board ADOPT REVISED PROPOSED AMENDMENTS TO RULE 4692 (COMMERCIAL CHARBROILING)AND ESTABLISHAN INCENTIVE GRANT PROGRAM FOR UNDER-FIRED CHARBROILERS September 7 7, 2009 Table 1

## - Estimated Surplus Reductions, Directly-Emitted PM2.5 I I I I 1

PM2.5 Reductions,tons per day Plan Reduction Commitment
Rule # 

# 1 Source Category Rule Reductions

4103 

# 1 Open Burning

Table 2

# - Estimated Surplus Reductions, Oxides of Nitrogen (NOx) Surplus Reductions

2014 3.49

## 1 3.49

## 1 0.00

## 1

4306

4901 4354 4692 2014

Rule 4103 amendment is scheduled for consideration in 2010. Rule 4354 reductions will be counted if the Board approves the 2008 rule amendmentsas a SIP revision; this consideration is scheduledfor early 2010.

Boilers, Steam Generatorsand Process Heaters (>5 MM Btulhr) Wood Burning Fireplaces and Wood Burning Heaters Glass Melting Furnaces Commercial Charbroiling Total

NOx Reductions, tons per day


# 1 4103 

# 1 Open Burning 2.65

## 1 2.65

## 1 0.00

## 1 0.00

## 1 2014

Rule# 0.24

0.69 0.00 2.28 6.70

Plan Reduction Commitment Source Category

4306

4308 4703 4354 4902

4901 0.24

1.06 0.08 0.02 4.89

Rule Reductions 0.00

0.37 0.08 -2.26 -1.81

2014

Rule 41 03 amendment is scheduledfor consideration in 2010. Rule 4354 reductions will be counted if the Board approves the 2008 rule amendments as a SIP revision; this consideration is scheduled for early 2010. Boilers, Steam Generators and Process Heaters (>5 MWI Btulhr) Boilers, Steam Generatorsand Process Heaters (0.075 to <2 MMBtuIhr) Stationary Gas Turbines Glass Melting Furnaces Residential Water Heaters Wood Burning Fireplaces and Wood Burning Heaters Total Surplus Reductions Surplus Reductions

as PM2.5 Equivalents 2014

1.52

0.55 2.21 1.58 0.40

0.06 8.97 2014

1.60

2.22 2.21 4.07 0.52

0.1 1 13.38 2014

0.08

1.67 0.00 2.49 0.12

0.05 4.41 0.03

0.63 0.00 0.95 0.05

0.02 1.68SJVUAPCD Governing Board ADOPT REVISED PROPOSED AMENDMENTS TO RULE 4692 (COMMERCIAL CHARBROILING)AND ESTABLISH AN INCENTIVE GRANT PROGRAMFOR UNDER-FIRED CHARBROILERS September 7 7, 2009 Table 3

# - Estimated Surplus Reductions, Oxides of Sulfur (SOX)

Taking Tables 

### 1, 2, and 

### 3 together, rule projects other than the charbroiler rule have netted more than enough emission reductionsto make up for the reduced rule effectiveness of this rule project.

SOX Reductions, tons per day

4103
4306 4354
4901

Cost Effectiveness Analysis The California Health and Safety Code, Section40920.6(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 measures. The cost effectiveness analysis is attached as Appendix C of the Final Draft Staff Report. Plan Reduction Commitment

Rule 4103 amendment is scheduledfor consideration in 2010. Rule 4354 reductions will be counted if the Board approves the 2008 rule amendments as a SIP revision; this consideration is scheduled for early 2010. Open Burning Boilers,Steam Generators and Process Heaters (>5 MMBtulhr) Glass Melting Furnaces Wood Burning Fireplaces and Wood Burning Heaters Total

Socioeconomic Analysis State law requires the District to analyze the socioeconomic impacts of any proposed rule amendment that significantly affects air quality or strengthens an emission limitation. The socioeconomic impact report is attached as Appendix D of the Final Draft Staff Report. 0.06
0.76 0.00
0.02 0.84

Rule Consistency Analysis Surplus Reductions

as PM2.5 Equivalents Rule Reductions

Pursuantto California Health & Safety Code Section 40727.2, District staff has prepared a rule consistency analysis that comparesthe elements of Revised Proposed Rule4692 with the corresponding elements of other District rules, federal regulations and guidelines that apply to the same source category or type of equipment. The rule consistency analysis is attached as Appendix Eto the Final Draft Staff Report. Surplus Reductions

0.06
1.92 1.41

0.03 3.42 0.00
1.16 1.41

0.01 2.58 0.00
1.16 1.41

0.01 2.58SJVUAPCD Governing Board ADOPT REVISED PROPOSEDAMENDMENTS TO RULE 4692 (COMMERCIAL CHARBROILING)AND ESTABLISHAN INCENTIVEGRANT PROGRAM FOR UNDER-FIRED CHARBROILERS September 17, 2009 Environmental Impacts
Pursuantto Section 15061 of the California Environmental Quality Act (CEQA), staff has investigatedthe possibleenvironmental impacts of the proposed amendmentsto Rule 4692. Based on the lack of evidence to the contrary, staff has concluded that the proposed amendments to the rulewill not have any significant adverse effects on the environment. Staff recommends filing a Notice of Exemption underthe provisions of Public Resource Code 15061 (b)(3).
Rule Development Process District staff conducted public workshops in October 2008, February 2009, and April 2009 to present and discuss the proposed amendmentsto Rule 4692. District staff solicited information from affected source operators, consultants, vendors, and manufacturers of control technologies, and trade associations on the technological feasibility and cost information used in developingthe proposed rule amendments. Staff incorporated comments received during the public workshop process in the proposed rule amendments, as appropriate.
'The notice of the public hearing for the proposed amendments to Rule 4692 was published in a general circulation newspaper in each of the eight San Joaquin Valley counties and mailed to affected sources, interested parties, the public, EPA and ARB. The public notice solicited written comments to be submitted by mail, and it also identified the name and telephone number of the District staff who was able to answer questions and respond to comments.

FISCAL IMPACT: Sufficient funding for the incentive grant program was included inthe 2009-10 District Budget. Therefore, approval of the recommendations in this item will require no modifications to the District Budget.

Attachments: Charbroiler Incentive Program (ChlP) Guidelines (4pages) Resolution for Revised Proposed Amendments to Rule 4692 (5pages) Revised Proposed Amendments to Rule 4692 (10pages) Final Draft Staff Report with Appendices for Revised Proposed Amendments to Rule 4692 (68 pages)