1 Final Staff Report with Appendices for

Amendments to Rule 4307 SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

FINAL STAFF REPORT

Amendments to Rule 4307 (Boilers, Steam Generators, and Process Heaters – 2 .0 MMBtu/hr to 5.0 MMBtu/hr)

May 19, 2011

Prepared by: Sandra Lowe-Leseth, Air Quality Engine er Koshoua Thao, Senior Air Quality Specialist

Reviewed by: Patrick Houlihan, Senior Air Quality S pecialist Derek Fukuda, Air Quality Engineer Jessi Fierro, Program Manager, Strategies and Ince ntives Errol Villegas, Program Manager, Strategies and In centives Samir Sheikh, Director, Strategies and Incentives

I. SUMMARY

A. Reasons for Rule Development and Implementation

California grows and processes about 80 percent of the world’s almonds and virtually 100 percent of the almonds consumed in the United S tates (US). Due to Salmonella

outbreaks traced to California almonds in 2001 and 2004, the Food and Drug Administration (FDA) has imposed pasteurization req uirements to reduce the potential for pathogen (bacteria that can make humans ill) co ntamination. The units that are the focus of this rule project are used to remove patho gens from the surface of raw almonds without “cooking” or otherwise affecting the nuts.

In October 2008, Paramount Farms, Incorporated, the largest almond processor in the US, installed an almond pasteurization unit at its Lost Hills processing facility. The unit’s burners, however, do not meet the San Joaqui n Valley Air Pollution Control District (District) Rule 4307 oxides of nitrogen (N Ox) limit. Paramount Farms asked for and received two one-year variances from the Distri ct’s Hearing Board. After the second variance hearing, the Rule Development Secti on was asked to research tree nut pasteurizer units and, if warranted, to consider a rule amendment incorporating tree nut pasteurizers into Rule 4307. The District has revi ewed the available information, visited the facility in question and has determined that a rule amendment is appropriate.

Based on the additional research, the District has estimated for a facility to install this low-NOx technology and comply with the existing rul e requirements, the unit would

achieve an emissions reduction of 0.003 tons of NOx per day, but at an incremental cost effectiveness of greater than $250,000 per add itional ton of NOx reduced. ThisSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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Amendments to Rule 4307 specific situation and associated compliance cost w as not considered during the last rule

amendment.

The rule amendments will allow this existing facili ty to continue meeting the strict FDA almond treatment requirements and comply with Rule 4307 requirements. New pathogenreduction units would be evaluated on a case-by-cas e basis within the context of the District’s permitting process.

B. Description of the Project

The purpose of this rule project is to amend Rule 4 307 to specifically incorporate tree nut pasteurizers as a separate type of unit. In ad dressing these pasteurizers, the District is protecting public health by balancing t he emissions from this unit and the potential health risks associated with un-treated t ree nuts.

C. Rule Development Process

The proposed rule and final draft staff report were published and mailed to affected sources and interested parties prior to a public he aring to consider the adoption of the proposed amendments to Rule 4307 by the District’s Governing Board.

II. CLIMATE CHANGE

The California Global Warming Solutions Act of 2006 (AB 32) created a comprehensive, multi-year program to reduce greenhouse gas (GHG) e missions in California, with the overall goal of restoring emissions to 1990 levels by the year 2020. In the coming years, ARB and the Legislature will be developing p olicies and programs to implement

AB 32. The District believes that the evidence and the rationale that climate change is occurring is compelling and convincing. In additio n to the long-term consequences of climate change, the District is concerned with the potential ramifications of more moderate but imminent changes in weather patterns. The Valley depends heavily on agriculture for its economy and has developed agric ultural practices based on the last several decades of weather patterns. Unanticipated and large fluctuations in these patterns could have a devastating effect on the Val ley’s economy.

While there are many win-win strategies that can re duce both GHG and criteria/toxic pollutant emissions, when faced with situations tha t involve tradeoffs between the two, the District believes that the more immediate publi c health concerns that may arise from an increase in criteria or toxic pollutant emission s should take precedence.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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Amendments to Rule 4307 III. BACKGROUND

A. Almond Treatment/Pasteurization

As a result of the two Salmonella outbreaks in 2001 and 2004, the FDA now requires that all almonds go through a pathogen reduction tr eatment before being sold to

consumers in North America. 1 There are two treatment levels. The higher bacte ria-kill level is pasteurization, and the lower level is cal led mandatory treatment. A number of other commonly consumed foods, such as milk, juice, eggs and canned foods are pasteurized in order to ensure safety by removing p athogens. Since the District is considering both treatment levels as one concept, f or the balance of this staff report, both levels of the FDA-required pathogen reduction will be referred to “pasteurization” to simplify the rule project’s discussion points.

Like almond handlers, pistachio handlers will most likely be required to control pathogens on their product as a direct consequence of a major Salmonella outbreak traced to pistachios in 2009. It is expected that the pistachio pasteurization provision will be promulgated within 12 to 30 months. This m eans that an additional three to seven tree nut pasteurizers could be built in the V alley. Emissions from new units would be evaluated on a case-by-case basis and with in the context of the District’s New

Source Review rule.

B. Validating a Pasteurization Process

The almond pasteurization plan became mandatory for the California almond industry on September 1, 2007. The FDA, along with Technica l Expert Review Panel (TERP) comprised of almond scientific experts, is responsi ble for evaluating and approving the treatment processes that demonstrate effectiveness in achieving a reduction of possible contamination in almonds while not impacting their quality and sensory (e.g., taste and texture) attributes. 2

A pasteurization process must go through “validatio n” in order to be considered approved for treating almonds. The objective of th e validation is to show that a product treated in a TERP-approved process meets the requir ed level of pathogen reduction. The handler keeps records to show that the pasteuri zation process was operated within approved parameters while the almonds were being pr ocessed.

The validation program begins with a testing protoc ol submitted by the handler to the TERP. The validation protocol must completely desc ribe the process used to treat the almonds, list the process parameters to be monitore d along with estimated ranges, identify critical control points, and spell out a t esting regimen that will demonstrate that the process produces the required level of pathogen reduction within a specific range of

1 Almond Board of California website http://www.almondboard.com/FoodProfessionals/Docume nts/Pasteurization_Sheet%205.22.09.pdf

2 Almond Board of California website http://www.almondboard.com/FoodProfessionals/Docume nts/Pasteurization_Sheet%205.22.09.pdfSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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Amendments to Rule 4307 monitored parameters. The handler must also list a ll of the products that will be treated by the process and the parameters that will be used for each product type. A separate pasteurization validation would be performed for ea ch product type that requires a different range of monitored parameters. The handl er must also demonstrate that the process layout sufficiently segregates treated and untreated product to prevent the comingling of treated and untreated almonds. After t he TERP approves the protocol, the validation program can begin.

Validation requires that the handler first identify the areas of the process that would be most resistant to pathogen reduction. Since most p athogen reduction processes use heat to kill bacteria, this means that the handler will test the pasteurization process to create a temperature map of the process in order to find the coolest points. Once these points are determined, the handler will place inocu lated almonds at the coolest points.

The operator makes the inoculated almonds using a s pecific strain of the bacteria called

Entercoccus faecium . This bacteria strain is a surrogate for the Salmonella strain that

caused the outbreak. The actual bacteria count for the inoculated almonds must be

enumerated before the inoculated almonds are used f or validation testing. Inoculated almonds with verified bacteria counts are then plac ed in the cool spots identified by the handler’s temperature profile testing. The pasteur ization process is then run at a particular set of monitored parameters. After past eurization, inoculated almonds that passed through the process are tested for residual bacteria. Sufficient replicate runs (usually three runs) are needed for each parameter to address process variation concerns. For temperature control, the handler wou ld typically have three runs at the lowest temperature and three runs at the highest te mperature. Inoculated almonds would be placed at all of the identified cool point s. For a process with five identified points, just testing the lowest and highest tempera ture would require 30 laboratory tests of inoculated almonds (three runs for the low tempe rature process condition multiplied by 5 identified points plus the same number for the high temperature condition). This does not include the pre-validation testing to veri fy the bacteria count of the inoculated almonds. Additionally, any almonds used during a v alidation program are considered untreated and must undergo a validated treatment pr ocess before they can be sold or

the almonds must be discarded. The re-treated or d iscarded almonds represent a

hidden cost of validation.

For a new system, operators make their best estimat e of the parameter settings that will achieve the requisite pathogen kill rate. If there is insufficient pathogen reduction during a given validation run, additional runs would be ne eded, beyond what was in the protocol.

A process remains validated as long as there are no changes to the process. Examples of when re-validation would be triggered are modifi cations in design, configuration, throughput, etc. As with new installations, the re -validation may go smoothly or there may be many additional runs above what was planned in the protocol before the process is validated.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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Amendments to Rule 4307 IV. CURRENT RULE 4307 AND AMENDMENTS

A. Current Rule 4307

Rule 4307 was adopted in December 2005, and it was last amended on October 2008. The rule applies to any gaseous fuel or liquid fuel fired boiler, steam generator, or process heater with a total rated heat input of at least 2. 0 million Btu per hour (MMBtu/hr) up to and including 5.0 MMBtu/hr. The current rule limits em ission of NOx, carbon monoxide (CO), and particulate matter (PM). NOx limits are 30 or 40 parts per million by weight (ppm) for gaseous and liquid fuel-fired units, respective ly. For new or replacement units, NOx is nine or twelve parts per million, depending on t he type of unit. CO is limited to 400 ppm. PM is controlled through fuel selection. Ope rators may choose PUC-quality natural gas, commercial propane, butane, liquefied petroleum gas, or a combination of such gases, or other low-sulfur fuel. If the opera tor chooses a high sulfur fuel, SOx is required to be controlled by either 95% or to no mo re than nine parts per million by volume (ppmv).

For detailed requirements, please refer to Rule 430 7, which is available on the District’s website at www.valleyair.org.

B. Amendments to Rule 4307

Section 3.0 – Definitions

A definition is added for tree nut pasteurizer. Th e definition of EPA is modified to the standard format for acronyms that puts the spelled- out name in front of the acronym.

Section 5.0 – Requirements

The San Joaquin Valley is home to some of the large st tree nut (almond and pistachio) processing operations in the entire nation. To pro tect consumers, the FDA imposed pathogen reduction requirements for tree nut proces sing operations to reduce the potential for contamination from pathogens such as Salmonella . A variety of pathogen reduction measures are employed by tree nut process ing operations, with the majority of facilities utilizing chemicals, blanching, or ro asting processes not subject to Rule 4307, and several facilities are utilizing steam pa steurization to satisfy FDA requirements. These pasteurizer units are costly, complex systems that sometimes

include small burners. The Paramount Farms almond pasteurizer unit is a two-part unit. The first part uses steam to add moisture to the su rface of the shelled almonds. The second part of the unit quickly heats the almond su rface to kill pathogens.

The District is proposing that tree nut pasteurizer s be fired on natural gas as a NOx control. This strategy is similar to the requireme nts imposed on vegetable dehydrators in District Rule 4309, a rule that has been approve d by the United States Environmental Protection Agency (EPA) into the California State I mplementation Plan (SIP). During natural gas curtailments, units would either not be used or would have to meet theSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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Amendments to Rule 4307 requirements of Section 4.6. Section 4.6 outlines limitations for a unit that fires on alternative fuels during natural gas curtailments. As detailed in Section VII of this report, imposing a 30 ppm NOx emission limit for th e single existing unit affected by the rule is extremely expensive because any change to t he process triggers a re-validation of the sterilization process. Since the pasteurize r is already operating, the requirement took effect on the date of rule adoption; therefore no commencement date was needed for this provision.

Section 5.4.4 is modified to clarify that a longer start-up or shutdown duration may be approved, if the operator receives approval from th e APCO, ARB, and EPA.

Section 6.0 – Administrative Requirements

The records section is modified. The operator of a tree nut pasteurizer would be required to keep records showing that the unit is b eing operated and maintained as recommended by the pasteurizer’s manufacturer, as w ell as being able to demonstrate that the fuel utilized by the unit meets the specif ications of PUC quality natural gas.

V. IMPACT OF THE AMENDMENTS ON OTHER DISTRICT COMMI TMENTS

A. Impact of the Amendments on District Attainment Strategies

This rule project is not a control measure in any a ttainment plan and is not expected to reduce or increase emissions from the single existi ng tree nut pasteurizer. For these reasons, the District has concluded that attainment of any ambient air quality standard will not be affected by this rule project. The ame ndments will not affect the District’s

2007 Ozone Plan

or the District’s 2008 PM2.5 Plan because no emission limits have been changed, nor are the amendments expected to af fect emissions from this source
category.

The federal Clean Air Act (CAA) requires that attai nment plans meet reasonable further progress (RFP) by achieving incremental emission re ductions to ensure attainment of the National Ambient Air Quality Standards (NAAQS) by the attainment date. The CAA does not identify specific emission reduction bench marks that must be met for particulate matter attainment plans. EPA has inter preted the CAA’s RFP requirement using the concept of achieving (generally) linear p rogress toward the standard. The

District’s 2008 PM2.5 Plan contains an RFP demonstration. However, the amend ments

do not have emission reductions associated with the m, so RFP is not expected to be affected by the changes in the rule.

B. Consideration for the Condensable Fraction of PM 2.5

Certain high-temperature processes emit gaseous pol lutants that rapidly condense into particle form in the ambient air. After January 1, 2011, areas that are nonattainment for the NAAQS for particulate matter that is 2.5 micron s or less in diameter (PM2.5) are toSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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Amendments to Rule 4307 consider the condensable fraction of directly emitt ed PM2.5 for purposes of establishing

the emissions limits for:

• RFP , in which an area shows continuous reductions of d irectly emitted PM2.5 and precursors, with sufficient emissions reduction s to demonstrate attainment by the applicable deadline; and

• Reasonably Available Control Technology (RACT) and Reasonably Available Control Measures (RACM) , in which a nonattainment area shows that it is adopting technologies and measures that are reasonably available, considering technical and economic feasibility; suf ficient to demonstrate expeditious attainment; and meet RFP. (reference: 40 CFR 51.1002(c))

The District established emissions limits for its a ttainment, RFP, and RACT/RACM

demonstrations in the 2008 PM2.5 Plan for the PM2.5 NAAQS set by EPA in 1997. The District continues to evaluate condensable particul ates and other directly emitted PM2.5 to improve its PM2.5 emissions inventory for future attainment plan efforts.

This amendment to Rule 4307 was neither included in , nor does it impede, the

emissions limits set in the 2008 PM2.5 Plan . The District is not currently aware of significant condensable PM2.5 emissions or related condensable PM2.5 emissions control technologies for the sources affected by th is amendment. The District has satisfied any applicable requirement to consider co ndensable particulates from this

source at this time.

VI. BASELINE EMISSION INVENTORY AND EMISSION REDUCT IONS

There is one almond pasteurization unit currently o perating that is affected by the amendments. The unit is fired on natural gas and r ated at 4.4 MMBtu/hr. There is no baseline inventory for this source category. The D istrict assumed typical uncontrolled burners were installed in the pasteurizer. The uni t was assumed to operate between 5,000 and 8,500 hours per year, and the average per cent of maximum heat input is between 70 percent and 90 percent of maximum heat i nput. The District used 0.092 pounds of NOx per MMBtu as the uncontrolled emissio n factor. Using these assumptions, the estimated uncontrolled emissions f rom this unit are about 1.0 to 1.5 tons of NOx per year.

The unit is already firing on natural gas, so the a mendments will not require a change to the unit and by extension, no emission reductions a re associated with the amendments. Additionally, there is no increase in emissions to implement this rule; therefore, there is no emission impact for this project.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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Amendments to Rule 4307 VII. COSTS AND COST EFFECTIVENESS ANALYSIS

The California Health and Safety Code Section 40920 .6(a) requires the District to conduct both an absolute cost effectiveness analysi s and an incremental cost effectiveness analysis of available emission contro l options before adopting each Best Available Retrofit Control Technology (BARCT) rule. The purpose of conducting a cost effectiveness analysis is to evaluate the economic reasonableness of the pollution control measure or rule. The analysis also serves as a guideline in developing the control requirements of a rule.

Absolute cost effectiveness of a control option is the added annual compliance cost in dollars per year divided by the emission reduction achieved in tons of pollutant reduced per year. Incremental cost effectiveness is intend ed to measure the change in costs, in dollars per year, and emissions reductions, in tons of pollutant reduced per year, between two progressively more effective control op tions or technologies. Incremental cost effectiveness compares the differences in cost s and the differences in emissions reductions of the two candidate control options. I ncremental cost effectiveness does not reveal the emission reduction potential of the control options, merely the additional cost of adding the next most effective control to a given control measure. Unlike the absolute cost effective analysis that identifies th e control option with the greatest emission reduction; incremental cost effectiveness does not present a meaningful

correlation between emissions reductions and cost e ffectiveness. Therefore, the relative values produced in the incremental cost ef fectiveness analysis and the absolute cost effectiveness values are not comparable and ca nnot be evaluated using similar

standards.

The pasteurizer at Paramount Farms is already in co mpliance with the new provisions of Rule 4307 and therefore, no additional costs to the operator are associated with the new requirements. Absolute cost effectiveness cann ot be calculated because there are no associated emission reductions, meaning that the $0 cost would be divided by zero, which is mathematically undefined.

The incremental cost effectiveness is the differenc e in cost between successively more effective controls. The next-most stringent option after natural gas firing is to require the current unit to replace the current burners with 30 ppm low-NOx burners. Paramount Farms submitted cost data for retrofitting their cu rrent unit. A theoretical replacement unit (which has not been built, nor tested to deter mine if it would pasteurize to the required level of pathogen reduction) would cost $2 60,000. As discussed in Section III.B of this staff report, any change to a validat ed sterilization process triggers revalidation under FDA regulations. Therefore, the c osts of materials and testing for the re-validation of the sterilization process are incl uded as one-time retrofit costs. Paramount Farms indicated that the testing and mate rials for re-validation would be an additional $1.2 million to $5.0 million. Added to the replacement cost, the total one-time retrofit costs of $1.46 to $5.26 million. Annualiz ed over 10 years at 10% rate of return, the annualized incremental cost is $238,000 to $856 ,000.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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Amendments to Rule 4307 In order to determine incremental cost effectivenes s, an estimate of emission reductions from the new requirement to the next-most effective control is needed. The District estimated a range of additional NOx reductions for this unit using the same assumptions as for the baseline inventory. The District used 0 .092 pounds of NOx per MMBtu as the uncontrolled emission factor and 0.036 pounds NOx p er MMBtu for the controlled emission factor. Using the same range for hours us ed and percent of maximum heat input as for the baseline emissions estimation abov e, the estimated emission reductions are 0.43 tons per year to 0.94 tons per year. The incremental cost effectiveness is $252,000 to $908,000 per additional ton of NOx redu ced. The calculation is shown in

Table 1.

Table 1 – Incremental Cost Effectiveness Analysis R esults

One-time

Retrofit Cost ($) Annualized

Cost ($/yr) Incremental Cost

Effectiveness at

min reductions ($/add’l ton NOx) Incremental Cost

Effectiveness at

max reductions ($/add’l ton NOx)

Total (retrofit + re-valid min) $1,460,000 $237,542 $550,886 $252,039

Total retrofit + re-valid max) $5,260,000 $855,802 $1,984,699 $908,032

Because the incremental cost is greater than $250,0 00 per additional ton of NOx reduced, the District has determined that requiring the affected unit be retrofitted with a 30 ppm burner is not reasonable for the existing un it.

VIII. SOCIOECONOMIC IMPACT ANALYSIS

Pursuant to state law, the District is required to perform a socioeconomic impact analysis prior to adoption, amendment, or repeal of a rule that has significant impacts on air quality or that will strengthen emission lim itations. The amendments to Rule 4307 would cost $0 to comply; therefore there is no soci oeconomic impact from the

amendments.

IX. ENVIRONMENTAL IMPACTS

Pursuant to the California Environmental Quality Ac t (CEQA), the District reviewed the possible environmental impacts of the proposed amen dments and determined that air quality and perhaps greenhouse gas emissions are th e only potentially affected environmental resources. The amendments do not imp ose regulatory requirements resulting in an increase in fuel combustion, thus i mplementation of this rule project would neither increase greenhouse gas emissions nor affect criteria pollutant emissions.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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Amendments to Rule 4307 The District concludes that there is no substantial evidence in the whole record before

the District that the amendments to Rule 4307 would cause any adverse effects on the environment. The District finds that the project i s exempt per the general rule that CEQA applies only to projects which have the potent ial for causing a significant effect on the environment (CEQA Guidelines Section 15061(b )(3)). For these reasons, a Notice of Exemption was filed upon the Governing Bo ard adoption of the amendments

to Rule 4307.

X. RULE CONSISTENCY ANALYSIS

Prior to adopting, amending, or repealing a rule or regulation, California Health and Safety Code Section 40727.2 requires a written anal ysis that identifies and compares requirements of the proposed rule with correspondin g, existing and proposed District rules and corresponding EPA rules, regulations, and guidelines. Based on the analysis,

the District concludes that the amendments to Rule 4307 are consistent with other District

rules and are not in conflict with these rules. Fu rther, the rule amendments are consistent with EPA rules, regulations, and guidelines that ap ply to the same source category. The analysis is presented in Appendix A of the Final St aff Report.

XI. REFERENCES

1. U.S. Environmental Protection Agency “Clean Air Fine Particulate Implementation Rule” Federal Register Volume 72 pag es 20586 – 20667; April
25, 2007.

2. U.S. Department of Agriculture/Agricultural Mark eting Service “Almonds Grown in California: Outgoing Quality Control Requirements” Federal Register Volume 72 pages 15021 – 15036; March 30, 2007.

3. Bob Klein, Manager, Administrative Committee for Pistachios, phone conversation November 2, 2010.

4. Almond Board of California, “Considerations for Proprietary Processes Used for Almond Pasteurization and Treatment” April 2007.

5. Almond Board of California, “Guidelines for Proc ess Validation Using

Enterococcus Faecium NRRL B-2354” October 2007.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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Amendments to Rule 4307 

### APPENDIX A

Rule Consistency Analysis

For Amendments to Rule 4307

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Amendments to Rule 4307 RULE CONSISTENCY ANALYSIS FOR AMENDMENTS TO RULE 43 07

I. REQUIREMENTS FOR RULE CONSISTENCY ANALYSIS

Pursuant to Section 40727.2 of the California Healt h and Safety Code, prior to adopting, amending of a rule or regulation, the District is r equired to perform a written analysis that identifies and compares the air pollution cont rol elements of the rule amendments to Rule 4307 with the corresponding elements of exi sting or proposed District and EPA regulations and guidelines that apply to boilers, s team generators, and process heaters (units). The elements that were analyzed are emiss ions standards, monitoring and testing requirements, and recordkeeping and reporti ng requirements.

II. ANALYSIS

A. District Rules

Boilers, steam generators, and process heaters subj ect to Rule 4307 could be subject to other District rules, including:

• Rule 2010 (Permits Required)

• Rule 2201 (New and Modified Stationary Source Revi ew Rule)

• Rule 4101 (Visible Emissions)

• Rule 4102 (Nuisance)

• Rule 4201 (Particulate Matter Concentration)

• Rule 4202 (Particulate Matter Emission Rate)

• Rule 4301 (Fuel Burning Equipment)

• Rule 4801 (Sulfur Compounds)

The above-listed rules are not in conflict nor are they inconsistent with the requirements

of amended Rule 4307.

Units subject to Rule 4307 are not subject to exist ing Rules 4351, 4305 and 4306 because these rules apply to larger boilers, steam generators, and process heaters with a rated heat input of greater than 5.0 MMBtu/hr. S imilarly, units subject to Rule 4307 are not subject to Rule 4308, which applies to unit s with rated heat input of 0.075 MMBtu/hr to 2.0 MMBtu/hr. The units subject to Dis trict Rule 4308 are smaller than those subject to Rule 4307; therefore, there is no duplication of requirements between

these rules.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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Amendments to Rule 4307 B. Federal Rules, Regulations, and Policies

1. EPA New Source Performance Standard (NSPS)

The federal NSPS regulations are found in the Code of Federal Regulations Title 40 Part 60 (40 CFR 60). There are four NSPSs that the District evaluated for this rule consistency analysis.

a. 40 CFR 60 Subpart D (Standards of Performance for F ossil-Fuel Fired Steam

Generators for Which Construction Commenced After A ugust 17, 1971)

40 CFR 60 Subpart D applies to fossil fuel-fired, a nd fossil fuel and wood residue-fired steam generating units of more than 2 50 MMBtu/hr that commenced construction or modification after August 17, 1971. 40 CFR 60 Subpart D establishes the emission standards for NO x, SOx, and PM. 40 CFR 60 Subpart D does not apply to units subject to Rul e 4307 because units subject

to Rule 4307 are rated less than 250 MMBtu/hr.

b. 40 CFR 60 Subpart Db (Standards of Performance for IndustrialCommercial-Institutional Steam Generating Units)

40 CFR 60 Subpart Db applies to steam generating un its with a heat input capacity of greater than 100 MMBtu/hr that commence construction, modification, or reconstruction after June 19, 1984. Steam gener ating units, as defined in 40 CFR 60 Subpart Db, do not include process heaters. 40 CFR 60 Subpart Db does not apply to units subject to Rule 4307 becaus e the units subject to Rule

4307 are rated less than 100 MMBtu/hr.

c. 40 CFR 60 Subpart Dc (Standards of Performance for Small IndustrialCommercial-Institutional Steam Generating Units)

40 CFR 60 Subpart Dc applies to steam generating un its with a maximum heat input capacity of 10 MMBtu/hr to 100 MMBtu/hr that commence construction, modification, or reconstruction after June 9,1989. 40 CFR 60 Subpart Dc does not apply to units subject to Rule 4307 because the units subject to Rule 4307

are rated less than 10 MMBtu/hr.

2. National Emission Standard for Hazardous Air Pol lutants (NESHAP) and Maximum Achievable Control Technology (MACT)

NESHAPs are codified in the CFR under 40 CFR 61. T here are no NESHAPS that apply to boilers, steam generators or process heaters.

EPA has issued MACT standards under Section 112 of the 1990 Clean Air Act

Amendments. These MACT standards have been codifie d into the Code ofSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

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Amendments to Rule 4307 Federal Regulations as 40 CFR 63. EPA recently pro mulgated two MACTs that apply to boilers, steam generators, and process hea ters - 40 CFR 63 Subpart DDDDD (NESHAP for Industrial, Commercial, and Insti tutional Boilers and Process Heaters) and 40 CFR 63 Subpart JJJJJ.

a. 40 CFR 63 Subpart DDDDD (NESHAP for Major Source s: Industrial, Commercial, and Institutional Boilers and Process H eaters)

40 CFR 63 Subpart DDDDD applies to existing, recons tructed, or new boilers and process heaters located at a stationary source that is classified as a major source for hazardous air pollutants (HAPs). This s ubpart defines large units as units greater than 10 MMBtu/hr. Since the applicab ility of Rule 4307 is for units that are between two and five MMBtu/hr, any Rule 43 07 unit that would be subject to this MACT would be considered a small un it, Further, the MACT has different pollutants and different emission limits depending on the size of the boiler/process heater and the fuel burned. If a un it subject to District Rule 4307 is also subject to 40 CFR 63 Subpart DDDDD, there i s no conflict between the provisions of the District rule and the MACT requir ements.

b. 40 CFR 63 Subpart JJJJJJ (NESHAP for Industrial, Commercial, and Institutional Boilers Area Sources)

This MACT establishes standards for boilers located at facilities that are not major sources of HAPs. It applies specifically to boilers that have heat input of at least 10 MMBtu/hr. Since units subject to District Rule 4307 are much smaller than this, the MACT requirements do not apply to th e units subject to District Rule 4307, and therefore, there is no conflict betw een the MACT standards and the provisions of Rule 4307.

3. EPA Alternative Control Techniques (ACT) Documen t

EPA –453/R-94-022 “Alternative Control Techniques ( ACT) Document – NOx

Emissions from Industrial/Commercial/Institutional Boilers”, dated March 1994

The ACT discusses the different control techniques for controlling NOx emissions from boilers with heat input capacities from 0.4 to 1,500 MMBtu/hr. The ACT also presented the achievable emission levels of se veral control techniques based on the type of boiler and the type of fuel us ed. The ACT contains cost

effectiveness estimates for different control techn iques. However, the ACT does not prescribe the specific emission limits that sho uld be used in developing a regulation to control NOx emissions from boilers.

4. EPA Control Techniques Guideline (CTG) Document

There is no EPA CTG for boilers, steam generators, and process heaters.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Appendix A: Rule Consistency Analysis May 19, 201 1

A-6 Final Staff Report with Appendices for

Amendments to Rule 4307 5. EPA Lowest Achievable Emission Rate (LAER) and E PA Best Available Control Technology (BACT) Requirements

EPA staff maintains a database of reasonably availa ble control technology (RACT), BACT, and LAER technologies that have been provided to EPA by state and local permitting agencies. Boilers in this dat abase that are the same size range as the rule applicability have limits that ar e equivalent to the current rule limits. For this reason, the rule is consistent wi th EPA’s RACT/BACT/LAER

database.

6. EPA Policy on Start-up or Shutdown

An EPA memorandum titled “State Implementation Plan s (SIPs): Policy Regarding Excess Emissions During Malfunctions, Sta rtup, and Shutdown” from Steven A. Herman, Assistant Administrator for Enfor cement and Compliance Assurance and Robert Perciasepe, Assistant Administ rator for Air and Radiation, and dated September 20, 1999 outlines the EPA polic y with regard to emissions during malfunction, startup, and shutdown. The sta rtup and shutdown provisions in Rule 4307 are consistent with these guidelines.

7. EPA Policy on Recordkeeping

Title V (federal) permits and MACT standards requir e five-year record maintenance. The proposed recordkeeping for Distri ct Rule 4307 requires that operators maintain records for at least five years. Rule 4307 is consistent with EPA recordkeeping policy.

III. CONCLUSION

Based on the above analysis, the District concludes that amended Rule 4307 is

consistent with other District rules and is not in conflict with these rules. Further, the proposed rule is consistent with EPA rules, regulat ions, and guidelines that apply to the
same source category.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Appendix B : Comments and Responses May 19, 2011

Final Staff Report with Appendices for

Amendments to Rule 4307 B - 1 

### APPENDIX B

Summary of Significant Comments and Responses

For Amendments to Rule 4307

May 19, 2011SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Appendix B : Comments and Responses May 19, 2011

Final Staff Report with Appendices for

Amendments to Rule 4307 B - 2 This page intentionally blank.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Appendix B : Comments and Responses May 19, 2011

Final Staff Report with Appendices for

Amendments to Rule 4307 B - 3 SUMMARY OF SIGNIFICANT COMMENTS FOR PROPOSED AMENDMENTS TO RULE 4307 (BOILERS, STEAM G ENERATORS,

AND PROCESS HEATERS –– 2.0 MMBTU/HR TO 5.0 MMBTU/HR )

EPA REGION IX COMMENTS

1. COMMENT: The Cost and Cost Effectiveness Analysis (Section V I, pages 6-7) in the staff report estimates that re-validation of th e sterilization process costs between $1.2 and $5 million. The District does not explain the high cost or wide cost range beyond one sentence indicating that Paramount Farms provided this estimate. Since this re-validation process drives the cost of retrofitting nut pasteurizing units beyond what the District considers cost effective, the District should explain these

costs in more detail.

RESPONSE: The District requested further information on the r e-validation of the sterilization process from the operator and has pro vided additional explanation in the Final Staff Report. Please refer to Sections I II and VII for the updates.

ARB COMMENTS

The District did not receive a comment letter from ARB.

STAKEHOLDER COMMENTS

The District did not receive any comment letters fr om stakeholders.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Appendix B : Comments and Responses May 19, 2011

Final Staff Report with Appendices for

Amendments to Rule 4307 B - 4 This page intentionally blank.