USEPA REGION IX

TECHNICAL SUPPORT DOCUMENT

for

SJVUAPCD Rule 9510

ATTACHMENT 3
BEFORE THE GOVERNING BOARD OF THE 

SAN JOAQUIN VALLEY UNIFIED 

AIR POLLUTION CONTROL DISTRICT 

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

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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 I 

10 11 WHEREAS, the District has conducted an active and effective regulatory program ( 

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

12 (1 1990; and I 

l3 11WHEREAS, said emission reduction programs have effectively improved air 

14 quality in the San Joaquin Valley Air Basin (SJVAB) for particulate matter less than 10 I I I 

15 11 microns in diameter (PMIO) and for 1 -hr ozone: and I 

11 WHEREAS, the District's 2007 Ozone Plan identifies substantial new emission I 

l7 11 reductions 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 I 

21 11 WHEREAS, the District's 2007 Ozone Plan shows that regulatory programs alone I 

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22 I1 will not provide the emission reductions needed to meet federal Clean Air Act 

(PM2.5)] implemented by the United States Environmental Protection Agency (EPA); 

and 

23 11 requirements for the federal 8-hr ozone and PM2.5 standards; and I 

24 11 WHEREAS, to meet these more stringent requirements, the District will need 1 

25 (1 emission reductions from sources outside of its regulatory authority and from sources I 

26 11 that may lack the financial wherewithal to implement technology with reduced air I 

SJVUAPCD 

30 E. Gettycburg 

Ave 

?+no. CA 93126 

559) 230-5800 

pollutant emissions; and 

IN 
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11 reductions in actual emissions can be cost-effectively achieved through incentiveWHEREAS, incentive programs allow the District to achieve emission reductions 

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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 I I 

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based programs; and 

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

lo I1 future emission reductions from incentive-based programs using funds from known 

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11 (1 funding 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 I I 

14 identified; and I I I1 WHEREAS, the use of new and varied funding sources for incentive-based 

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24 Enhance SIP Creditability of lncenfive-Based Emission Reductions was held; and I I 

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 permanent f~i life of project) and requirements for SIP creditability for I I 

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NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 

1. The District will take all actions necessary to ensure that reductions from 

District-operated incentive programs meet €PA criteria (surplus, quantifiable. 

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11 a. Use the Carl Moyer Program Guidelines to calculate creditable 

all incentive-based emission reductions used by the District to meet federal Clean Air 

Act requirements. The specific commitments that the District will meet for incentivebased reductions used to meet federal Clean Air Act requirements are as follows. 

2 The District will implement incent~ve projects through legally enforceable 

contracts between the District and the grantee. These contracts will describe the 

actions that the grantee must take to achieve the 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 reductions or will submit additional 

SIP-creditable reductions where the grantee's compliance is impractical. 

3. The District will ensure that all emission reductions calculated for incentive 

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I1 emission reductions for use in SIPS for incentive projects funded by the 

projects will be done using established protocols or using protocols developed in a 

transparent public process. In particular, the District will 

l9 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 in an 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 District Air Pollution Control Officer within 30 days of receipt of 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 

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reductions. 

4. The District will continue to conduct onsite inspections and other monitoring of 

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incentive projects to enforce the incentive-based reductions. All incentive projects 

described in (1) above will be field-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 

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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 of the final due date of the 

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annual report. 

5. The District will prepare and provide annual reports to EPA by March 31'' of 

21 I1 reductions versus predicted emission reductions, discuss any quantification or surplus 

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22 issues that 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 from field inspections and audits, and include or reference I I 

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

SJVUAPCD 

1990 E. Gettysburg 

Ave 

Fresno. CA 93726 

(559) 250-5800 

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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 

report with changes necessary to assure compliance with all applicable federal Clean 
I1 track and report on any incentive-based reductions tied to transportation conformity 

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

Air 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 Clean Air Act requirements. The District will separately 

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

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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 information from annual reports and field inspections to 

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

II in the annual reports. The District will develop and implement a new data collection 

12 and management system for the real-time tracking and evaluation of emission I I 

13 reductions from incentive-based programs. I I 

14 1) 8. The District Governing Board commits to provide adequate resources for 

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22 11 10.Adoption of 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. 

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9. The District Governing Board hereby finds, based on the evidence and 

information presented at the hearing upon which its decision is based, that all notices 

required to be given by law have been duly given, and that the District Governing 

Board has allowed public testimony. 

SJVUAPCO 

390 E. Gettysburg 

Ave 

resno, CA 93726 

(559) 230-5800 

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meeting federal requirements for the PM2.5 and 8-hr ozone standards and to 

therefore promote the health and welfare of the residents of the SJVAB. 

1 1. 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 I I 

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4 1) 13. District staff is hereby authorized to adjust operation of the District incentive 

12. The District Governing Board requests that the ARB Executive Officer transmit 

5 program, including the update of Board-adopted protocols, as warranted by new I I 

6 1 ( information on emissions, and to make any minor typographical and technical changes 

7 11 in the Resolution and Staff Report that are necessary to correct minor errors, clarify 

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

9 11 THE FOREGOING was passed and adopted by the following vote of the 

10 Governing Board of the San Joaquin Valley Unified Air Pollution Control District this I I 

1 1 11 "adoption date", to wit: 

AYES: BARBA , CASE, DOMINIC1 , MCQUISTON , NELSON 

O'BRIEN, VIERRA, ORNELLAS, WORTHLEY 

I4 I1NOES: BRAR, PEREA 

ABSENT: NONE 

SAN JOAQUIN VALLEY UNIFIED 

l9 11 AIR POLLUTION CONTROL DISTRICT 

0. Steven Worthley, Chair b' 

23 11 Governing Board 

SJWAPCD 

990 E. Gettysburg 

Ave 

:resno. CA 93726 

(559) 230-5800 

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Toni Taber 

ATTEST: