### USEPA REGION IX TECHNICAL SUPPORT DOCUMENT

for SJVUAPCD Rule 9510

ATTACHMENT 3BEFORETHE GOVERNING BOARD OF THE SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

WHEREAS, the San Joaquin Valley Unified Air Pollution Control District (District) 

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is a duly constituted unified district, as provided in California Health and Safety Code 

# I IN 'THE MATTER OF: ) RESOLUTION 

### NO.07-04-llb ADOPTING COMMITMENTS TO ENHANCE SIP CREDITABILITY OF ) INCENTIVE-BASED EMlSSlON ) REDUCTIONS ) )

g 

# 1) (CHBSC) Sections 40150 to 40161; and 

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# 11 WHEREAS, the District has conducted an active and effective regulatory program 

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# 1)that has successfully reduced Valleywide air pollution by more than 50 percent since 12 

# (1 1990;and 

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# 11 WHEREAS, said emission reduction programs have effectively improved air 14 quality in the San Joaquin Valley Air Basin (SJVAB) for particulate matter less than 10 

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# 11microns in diameter (PMIO) and for 1 -hr ozone: and 

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# 11 WHEREAS, the District's 

### 2007 Ozone 

### Plan identifies substantial new emission 

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# 11reductions that are needed to attain the more stringent ambient air quality standards 18 llfor 8-hr ozone [and also for particulate matter less than 

### 2.5 microns in diameter 

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# 11 WHEREAS, the District's 

### 2007 Ozone 

### Plan shows that regulatory programs alone

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# I1will not provide the emission reductions needed to meet federal Clean Air Act (PM2.5)] implemented by the United States Environmental Protection Agency (EPA); and

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# 11requirements for the federal 8-hr ozone and PM2.5 standards; and 

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# 11 WHEREAS, to meet these more stringent requirements, the District will need 

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# (1emission reductions from sources outside of its regulatory authority and from sources 

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# 11that may lack the financial wherewithal to implement technology with reduced air

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SJVUAPCD 30 E. Gettycburg Ave ?+no. CA 93126 559) 230-5800 pollutant emissions; and IN1

# 11reductions in actual emissions can be cost-effectively achieved through incentive

### WHEREAS, incentive programs allow the District to achieve emission reductions 2 

### 3 from these types of sources; and 

### WHEREAS, the District's past experience demonstrates that substantial



### 7 surplus to those obtained from regulations, quantifiable, enforceable, and permanent 

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### 6 based programs;and 

### WHEREAS, current EPA guidance requires that all incentive-based reductions be



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# I1future emission reductions from incentive-based programs using funds from known



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# (1funding sources such as the Carl Moyer Program, the Department of Motor Vehicles for the life of the project; and 

### WHEREAS, the District's 2007 Ozone Plan identifies the potential for substantial



### 12 registration surcharge fees, the Indirect Source Review fees, and development 

# I I 13 agreements, as well as from future state and federal funding sources not yet 

# II 14 identified; and 

# II I1 WHEREAS, the use of new and varied funding sources for incentive-based 

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24 Enhance 

### SIP Creditabilityoflncenfive-BasedEmission Reductionswas held; and 

# II emission reductions may require modifications to the District's incentive program

implementation to ensure that EPA can give credit to the reductions as meeting SIP commitments for emission reductions; and 

### WHEREAS, continued success and reliance on incentive-based programs in current and future plans (e.g., the 

### 2008 PM2.5 Plan) require formal 

### €PA recognition 

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SJVUAPCD I990 E.Gettysburg Ave Fresno, CA 93726

(559) 230-5800 that the resulting reductions are creditable towards emission reduction commitments in SIPS;and 

### WHEREAS, an appropriate public comment period on the Commitments to 

### WHEREAS, a public hearing for the adoption of the Commitments was duly noticed and held on "adoption daten;4 enforceable and permanentf~i life of project) and requirements for SIP creditability for 

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### 3 NOW,THEREFORE, BE IT RESOLVEDAS FOLLOWS: 1. The District will take all actions necessaryto ensure that reductions from District-operated incentive programs meet €PA criteria (surplus, quantifiable.



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# 11 a. Usethe Carl Moyer Program Guidelines to calculate creditable all incentive-based emission reductions used by the Districtto meet federal CleanAir Act requirements. The specific commitmentsthat the Districtwill meet for incentivebased reductions usedto meet federal Clean Air Act requirements are as follows. 2 The District will implement incent~ve projects through legally enforceable contracts betweenthe District and the grantee. These contracts will describe the actions that the grantee must take to achievethe emission reductions calculated for the project. The District will seek enforcement of the terms of the contracts against non-compliant sources to obtain the agreed-upon reductionsor will submit additional SIP-creditable reductions where the grantee's compliance isimpractical. 3. The District will ensure that all emission reductions calculated for incentive 15 

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# I1 emission reductionsfor use in SIPSfor incentive projects funded by the projects will be done using established protocols or using protocols developed in a transparent public process. In particular, the Districtwill



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# I1 Carl Moyer Program Incentive Funds; and

SJVUAPCD 990 E. Gettysburg Ave :resno. CA 93726 (559) 230-5800 b. At its discretion, use the Carl Moyer Program Guidelines to calculate creditable emission reductions for incentive projects funded by other than Carl Moyer Program Incentive Funds; and c. Use non-Carl Moyer protocols for other funding sources, provided such protocols are developed 

### inan open public process that includes issuance of a draft protocol, holding at least one workshop on the draft protocol, revising the protocol as needed based on public comment, and adopting the protocol at a duly-noticed public hearing of the District Governing Board. The District will address any €PA objections to board-

# II adopted protocols provided that EPA submits written objections to the 

# 11 DistrictAir Pollution Control Officer within 30 days of receiptof the 

# I1 board-adopted protocol or another mutually agreed upon timeline. In 

# I1 objecting to board-adopted protocols, EPA must describe the basis for 

# 11 the objection and offer possible remedies. The District will update any board-adopted protocols on a regular basis to take into account new SIP provisions. new emission standards and new emission factors in order to 

# 11 ensure surplus reductions and to improve the accuracy of the quantified 

### 9 10 reductions. 4. The District will continue to conduct onsite inspections and other monitoring of 11 12 13 incentive projects to enforce the incentive-based reductions. 

### All incentive projects described in (1) above will befield-inspected at least once every five years or at least once during the project lifetime for projects with a lifetime of less than five years. In 14 15

18 each calendar year for the preceding calendar year after at least one public hearing 

# I I addition, for any incentive project that did not submit its required annual report, the

District will field inspect said project within six months ofthe final due date of the 16 17 annual report. 5. The District will prepare and provide annual reports to EPA by March 31'' of



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# I1reductions versus predicted emission reductions, discuss any quantification or surplus 19 20

22 issuesthat have arisen during the reporting period and how they were resolved, 

# I I allowing for public review and input. At a minimum, the annual reports will describe

the amount of incentive-based funds spent, verify the amount of actual emission

23 summarize any key issues fromfield inspections and audits, and include or reference 

# II 24 publicly available electronic information or records for each grant issued. 

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SJVUAPCD 1990 E. Gettysburg Ave Fresno. CA 93726

(559) 250-5800 25 26 

### 27 28 6. If an annual report indicates a shortfall of emission reductions, the District will revise any air quality plan(s) dependent on those reductions to meet requirements and will submit an amended plan within 12 months of the date of hearing of the annual reportwith changes necessary to assure compliance with all applicable federal Clean

# I1track and report on any incentive-based reductions tied to transportation conformity 1 2 

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5 emissions budgets, and will work with local agencies to remedy specific shortfalls to 

# IIAir Act requirements These changes may include additional regulatory measures or

enhanced funding to generate the necessary reductions in the timeline necessary to meet the appl~cable federal CleanAir Act requirements. The District will separately

8 track actual emissions reductions from incentive-based programs on a real-time basis, 

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9 [(and will provide quality-assured data on incentive-based emission reductions to the the emissions budgets if needed. 7. The District will use informationfrom annual reports and field inspections to

10 public on a continuous basis via website posting. These data will also be summarized 

# II IIin the annual reports. The Districtwill develop and implement a new data collection 12 and management system for the real-time tracking and evaluation of emission 

# II 13 reductions from incentive-based programs. 

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# 1) 8. The District Governing Board commits to provide adequate resourcesfor 15 16 17



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# 11 10.Adoptionof these commitments is necessary to identify emission reductions for tracking and compliance of emissions reductions from incentives to ensure that grantees fulfill contract requirements and that actual emissions reductions are achieved and sustained. 18 19 20 21 9. The District Governing Board hereby finds, based on the evidence and information presented at the hearing uponwhich its decision is based, that all notices required to be given by law have beenduly given, and that the District Governing Board has allowed public testimony.

SJVUAPCO 390 E. Gettysburg Ave resno, CA 93726 (559) 230-5800 23 24 2

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### 26 27 meetingfederal requirements for the PM2.5 and 8-hr ozone standards and to therefore promote the health and welfare of the residents of the SJVAB. 11.

### The Executive DirectorIAir Pollution Control Officer is hereby directed to forward a copy of this Resolution and Staff Report to the California Air Resources Board (ARB).2 the Resolution and Staff Report, as adopted by the District Governing Board, to the 

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# 1) 13.Districtstaff is hereby authorizedto adjust operationof the District incentive 12.The District Governing Board requests that the ARB Executive Officer transmit



### 5 program, includingthe update of Board-adopted protocols, as warranted by new 

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# 1( informationon emissions, and to make any minor typographicaland technical changes 7

# 11in the Resolution and Staff Reportthat are necessaryto correct minor errors, clarify 

### 8 wording, or to satisfy ARB and EPA technical requirements. 

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# 11 THE FOREGOINGwas passed and adopted 

### by the following vote of the 10 Governing Board of the San Joaquin Valley Unified Air Pollution Control District this 

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# 11 "adoption date", to wit: AYES: BARBA 

### , CASE, DOMINIC1

### , MCQUISTON

### , NELSON O'BRIEN, VIERRA, ORNELLAS, WORTHLEY I4 

# I1 NOES: BRAR, PEREA

ABSENT: NONE

SAN JOAQUINVALLEY UNIFIED 

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# 11 AIR POLLUTION CONTROL DISTRICT 

# 0. Steven 

### Worthley, Chair 

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# 11 Governing Board

SJWAPCD 990 E. Gettysburg Ave :resno. CA 93726

(559) 230-5800 24 

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Toni Taber ATTEST: