GOVERNING BOARD

Tom Wheeler, Chair Supervisor, Madera County

Oliver L. Baines III
, Vice Chair Councilmember, City of Fresno

Sally J. Bomprezzi Councilmember, City of Madera

Dennis Brazil Mayor, City of

John Capitman, Ph.D. Appointed by Governor

David Couch Supervisor, Kern County

Bob Elliott Supervisor, San Joaquin County

Harold Hanson Councilmember, City of Bakersfield

Buddy Mendes Supervisor, Fresno County

William O’Brien Supervisor, Stanislaus County

Craig Pedersen Supervisor, Kings County

Alexander C. Sherriffs, M.D. Appointed by Governor

Vacant Small City

– Tulare County

Hub Walsh Supervisor, Merced County

J. Steven Worthley Supervisor, Tulare County

Seyed Sadredin Executive Director Air Pollution Control Officer

Northern Region Office 4800 Enterprise Way Modesto, CA 95356

- 8718 (209) 557

- 6400 • FAX (209) 557

- 6475

Central Region Office 1990 East Gettysburg Avenue Fresno, CA 93726

- 0244 (559) 230

- 6000 • FAX (559) 230

- 6061

Southern Region Office 34946 Flyover Court Bakersfield, CA 93308

- 9725 (661) 392

- 5500 • FAX (661) 392

- 5585

www.valleyair.org DATE: April 16, 2015

TO: SJV UAP CD G overning B oard

FROM: Seyed Sadredin, Executive Director/APCO Project Coordinator: Sheraz Gill

RE: ITEM NUMBER 7: ADOPT 2015 PLAN FOR THE 1997 PM2.5 STANDARD , INCLUDING REQUEST TO EXTEND ATTAINMENT DEADLINE ; APPROVE ASSOCIATED COMMI TMENTS TO CONTINUE TO LEAVE NO STONE UNTURNED IN ASSESSING FUTURE AMENDME NTS TO DISTRICT RULES THAT MAY PROVIDE ADDITIONAL FEASIBLE REDUCTIONS; APPROVE COMMITMENTS TO ACHI E V E FURTHER REDUCTIONS IN PARTICULATE EMISSI ONS AND ITS PRECURSORS THROUGH INCENTIVE

- BASED STRATEGIES TO REPLACE HEAVY DUTY TRUCKS AND RESIDENTIAL WOOD BURNING DEVICES; APPROVE RESOLUTION 15

- 4

- 7B TO AMEND RESOLUTION 10

- 10

- 14 TO CONTINUE NECESSARY AB 2522 DMV FUNDING FOR INCENTIVE

- BASED COMMITMENTS IN THE PLAN TO REDUCE MOBILE SOURCE EMISSIONS

RECOMMENDATION S :

1. Adopt the Proposed 2015 Plan for the 1997 PM2.5 Standard ; and

2. Authorize the Chair to sign Resolution 15

- 4

- 7 A adopting the Proposed 2015 Plan for the 1997 PM2.5 Standard and request ing a n extension of the attainment deadline from December 31, 2015 to December 31 , 2018 for the 24

- hour PM2.5 standard and December 31 , 2020 for the annual PM2.5

s tandard ; andSJV U

APCD Governing Board ADOPT 2015 PLAN FOR THE 1997 PM2.5 STANDARD, INCLUDING REQUEST TO EXTEND ATTAINMENT DEADLINE; APPROVE ASSOCIATED COMMITMENTS TO CONTINUE TO LEAVE NO STONE UNTURNED IN ASSESSING FUTURE AMENDMENTS TO DISTRICT RULES THAT MAY PROVIDE ADDITIONAL FEASIBLE REDUCTIONS; APPROVE COMMITMENTS TO ACHIE VE FURTHER REDUCTIONS IN PARTICULATE EMISSIONS AND ITS PRECURSORS THROUGH INCENTIVE

- BASED STRATEGIES TO REPLACE HEAVY DUTY TRUCKS AND RESIDENTIAL WOOD BURNING DEVICES; APPROVE RESOLUTION 15

- 4

- 7B TO AMEND RESOLUTION 10

- 10

- 14 TO CONTINUE NECESSARY AB 2522 D MV FUNDING FOR INCENTIVE

- BASED COMMITMENTS IN THE PLAN TO REDUCE MOBILE SOURCE EMISSIONS April 16, 2015

3. Authorize the Chair to sign R esolution 15

- 4

- 7 B to authorize the use of existing AB 2522 DMV revenues to support commitments for further reductions in emissions required by the U.S. Environmental Protection Agency (EPA) to grant a one

- time five year extension of the attainment deadline, and reta in local control to revoke imposition of the DMV surcharge fees under AB 2522 upon finding by the Governing Board that such revenues are no longer necessary to fulfill mandates under the federal Clean Air Act (CAA) ; and

4. Direct staff to forward the adopte d 2015 Plan for the 1997 PM2.5 Standard and attached R esolution 15

- 4

- 7 A to the California Air Resources Board (ARB) for approval and submittal to EPA.

BACKGROUND :

In 1997, EPA set the first National Ambi ent Air Quality Standard (NAAQS ) for particulate matter with a diameter that is equal to or less than 2.5 micrometers (PM2.5) . EPA set the annual standard at 1 5 μg/m 3 and the 24

- hour standard at 65 μg/m 3

. On April 30, 2008, your Board adopted the 2008 PM2.5 Plan satisfying all federal imp lementation requirements for the 1997 federal PM2.5 standard . Per guidance from EPA , this plan addressed the 1997 PM2.5 standard under Subpart 1 of federal CAA Title 1, Part D (Subpart 1) . Subsequently, in 2013, the D.C. Circuit Court ruled that EPA

erre d by solely using CAA Subpart 1 in establishing its PM2.5 implementation rule, without consideration of the PM

- specific provisions in CAA Title 1, Part D, Subpart 4 ( Subpart 4 ) . In June 2014, EPA then classified the San Joaquin Valley ( Valley ) as a Modera te nonattainment area under Subpart 4 with an attainment date of April 5, 2015

. EPA recently reclassified the Valley as Serious nonattainment effective May 7, 2015 with an attainment date of December 31, 2015.

This 2015 PM2.5 Plan addresses the federal mandates for a Serious nonattainment

area related to the 1997 PM2.5 standard . Building on decades of developing and implementing active and effective air pollution control strategies, this plan contains Most Stringent Measures (MSM), Best Available Control Measures (BACM), additional enforceable commitments for further reductions in emissions, and ensures expeditious attainment of the 1997 standard. However, the tortured path that has led to this juncture where the District has to re write an attainment plan for an old standard illustrates the need for modernizing the antiquated provisions of the CAA.

2SJV U

APCD Governing Board ADOPT 2015 PLAN FOR THE 1997 PM2.5 STANDARD, INCLUDING REQUEST TO EXTEND ATTAINMENT DEADLINE; APPROVE ASSOCIATED COMMITMENTS TO CONTINUE TO LEAVE NO STONE UNTURNED IN ASSESSING FUTURE AMENDMENTS TO DISTRICT RULES THAT MAY PROVIDE ADDITIONAL FEASIBLE REDUCTIONS; APPROVE COMMITMENTS TO ACHIE VE FURTHER REDUCTIONS IN PARTICULATE EMISSIONS AND ITS PRECURSORS THROUGH INCENTIVE

- BASED STRATEGIES TO REPLACE HEAVY DUTY TRUCKS AND RESIDENTIAL WOOD BURNING DEVICES; APPROVE RESOLUTION 15

- 4

- 7B TO AMEND RESOLUTION 10

- 10

- 14 TO CONTINUE NECESSARY AB 2522 D MV FUNDING FOR INCENTIVE

- BASED COMMITMENTS IN THE PLAN TO REDUCE MOBILE SOURCE EMISSIONS April 16, 2015

DISCUSSION :

In 2012, after implementing much of the commitments in the 2008 PM2.5 Plan to address the 1997 standard , the Valley was on the verge of attaining the standard with an average annual concentration of 14.7 μg/m 3 and an average 24

- hour concentration of 56.4 μg/m 3 at the Valley’s historic peak PM2.5 sites in Bakersfield. However, due to the extreme drought, st agnation, strong inversions, and historically dry conditions experienced over the winter of 2013

- 2014, attainment was impossible even if the Valley experienced zero PM2.5 pollution for the last three quarters of 2014. The CAA includes provisions for excluding uncontrollable “exceptional events” from a region’s attainment determination, but the current EPA framework specifically excludes stagnation and drought conditions from qualifying as “exceptional events

. ” Given that attaining the standard in 201 5 is physically impossible, the District was compelled to submit a formal request for reclassification to Serious nonattainment . This reclassification extend ed the attainment date by eight months to December 31, 2015. Unfortunately, the exceptional weath er conditions experienced in 2013

- 2014 also make it impossible to meet the new attainment deadline of December 31, 2015. For that reason , this plan is accompanied by a request for a one

- time extension of the attainment deadline for the 24

- hour PM2.5 stand ard to 2018 and the annual PM2.5 standard to 2020.

Adding further confusion, in accordance with federal mandates, in December 2012, your Board adopted the 2012 PM2.5 Plan to address the 2006 federal PM2.5 standard. This plan was also adopted under Subp art 1 of the CAA following EPA’s guidance at the time

. To further complicate matters, a few days before your Board adopted the 2012 PM2.5 Plan , EPA proposed a new PM2.5 standard, which was finalized in the Federal Register in January 2013 (2012 PM2.5 Stan dard, 12 μg/m 3 annual).

The above actions trigger additional federal mandates that can best be described as chaotic, with multiple attainment plans required for the same pollutant with each standard requiring a separate attainment plan, leading to multiple overlapping requirements and deadlines. These mandates are summarized in the table below:

3SJV U

APCD Governing Board ADOPT 2015 PLAN FOR THE 1997 PM2.5 STANDARD, INCLUDING REQUEST TO EXTEND ATTAINMENT DEADLINE; APPROVE ASSOCIATED COMMITMENTS TO CONTINUE TO LEAVE NO STONE UNTURNED IN ASSESSING FUTURE AMENDMENTS TO DISTRICT RULES THAT MAY PROVIDE ADDITIONAL FEASIBLE REDUCTIONS; APPROVE COMMITMENTS TO ACHIE VE FURTHER REDUCTIONS IN PARTICULATE EMISSIONS AND ITS PRECURSORS THROUGH INCENTIVE

- BASED STRATEGIES TO REPLACE HEAVY DUTY TRUCKS AND RESIDENTIAL WOOD BURNING DEVICES; APPROVE RESOLUTION 15

- 4

- 7B TO AMEND RESOLUTION 10

- 10

- 14 TO CONTINUE NECESSARY AB 2522 D MV FUNDING FOR INCENTIVE

- BASED COMMITMENTS IN THE PLAN TO REDUCE MOBILE SOURCE EMISSIONS April 16, 2015

Table 1 Mandated Actions for the 2006 and 2012 PM2.5 Standards

December 2012 District adopt ed the 2012 PM2.5 Plan to address the 2006 federal PM2.5 standard

June 2014 EPA classified the District as a Moderate nonattainment area under Subpart 4 for the 2006 federal PM2.5 standard
January 2015 EPA proposed approval of the District’s 2012 PM2.5 Plan as a Moderate area plan under Subpart 4
January 2015 EPA proposed to reclassify the District as a Serious nonattainment area under Subpart 4 for the 2006 federal PM2.5 standard Effective April 15, 2015 EPA designates the Valley as a Moderate nonattainment area for the 2012 federal PM2.5 standard

Late 2016 District must submit a new attainment plan under a Serious classification for the 2006 federal PM2.5 standard (18 months after reclassification)

October 2016 District must submit a Moderate plan for the 2012 federal PM2.5 standard to justify and request reclassification to Serious nonattainment classification

Mid

- 2018 District must then submit a new attainment plan under a Serious classification for the 2012 federal PM2.5 standard (18 months after reclassification)

For e ach of the standards, the District would have federally mandated attainment deadlines of 6 years from designation as a Moderate nonattainment area, or 10 years from designation as a Serious nonattainment area, and may need to request an extension depending on the timing of actions by EPA and mandated deadlines

.

**Continuous Reductions in Emissions**

Through the comprehensive attainment strategy included in this 2015 PM2.5 Plan , the Valley will reduce NOx emissions by 38% between 2012 and 2020 (see Figure 1). In addition to these much

- needed NOx reductions, the District’s strategy also reduces direct PM2.5 emissions that not only assist the Valley in attaining the standard as

e xpeditiously as possible, but also reduce the PM2.5 emissions that pose the greatest health impacts to Valley residents. These strategies reduce highly health

- impactful PM2.5 emissions where and when they matter most in Valley neighborhoods, and provide h ealth benefits beyond simply attaining the federal standard.

4SJV U

APCD Governing Board ADOPT 2015 PLAN FOR THE 1997 PM2.5 STANDARD, INCLUDING REQUEST TO EXTEND ATTAINMENT DEADLINE; APPROVE ASSOCIATED COMMITMENTS TO CONTINUE TO LEAVE NO STONE UNTURNED IN ASSESSING FUTURE AMENDMENTS TO DISTRICT RULES THAT MAY PROVIDE ADDITIONAL FEASIBLE REDUCTIONS; APPROVE COMMITMENTS TO ACHIE VE FURTHER REDUCTIONS IN PARTICULATE EMISSIONS AND ITS PRECURSORS THROUGH INCENTIVE

- BASED STRATEGIES TO REPLACE HEAVY DUTY TRUCKS AND RESIDENTIAL WOOD BURNING DEVICES; APPROVE RESOLUTION 15

- 4

- 7B TO AMEND RESOLUTION 10

- 10

- 14 TO CONTINUE NECESSARY AB 2522 D MV FUNDING FOR INCENTIVE

- BASED COMMITMENTS IN THE PLAN TO REDUCE MOBILE SOURCE EMISSIONS April 16, 2015

Figure 1 San Joaquin Valley Emissions Reductions, **2015 PM2.5 Plan**

**Plan Based on Extensive Scientific Research**

In developi ng this plan, the District and ARB took full advantage of the extensive scientific research and knowledge that has been developed to characterize the Valley’s unique air quality chemistry and challenge s . The District, through the San Joaquin Valley

- wide Air Pollution Study Agency, participated in and contributed to the expenditure of nearly $30 million to support the California Regional Particulate Air Quality Study (CRPAQS). This study, and the subsequent research built on its foundation, has shed light on the complexity of PM2.5 in the Valley . Additionally, recent health studies highlight the associated risks inherent in the complex components of PM2.5. Acknowledgement and understanding of this complexity is central to th is 2015 PM2.5 Plan and was used to form its scientific foundation.

Usi ng the extensive body of knowledge regarding formation of PM2.5 in the Valley, ARB performed Relative Response Factor (RRF) modeling to predict future PM2.5 concentrations throughout the Valley based on previous modeling methodologies used in developing th e 2008 PM2.5 Plan . This modeling was performed consistent with EPA guidance, and involved sophisticated computer modeling and review by a team of 0 50 100 150 200 250 300 350

2012 2014 2017 2020Emissions (tons per day)

NOx Emissions PM2.5 Emissions SOx Emissions

5SJV U

APCD Governing Board ADOPT 2015 PLAN FOR THE 1997 PM2.5 STANDARD, INCLUDING REQUEST TO EXTEND ATTAINMENT DEADLINE; APPROVE ASSOCIATED COMMITMENTS TO CONTINUE TO LEAVE NO STONE UNTURNED IN ASSESSING FUTURE AMENDMENTS TO DISTRICT RULES THAT MAY PROVIDE ADDITIONAL FEASIBLE REDUCTIONS; APPROVE COMMITMENTS TO ACHIE VE FURTHER REDUCTIONS IN PARTICULATE EMISSIONS AND ITS PRECURSORS THROUGH INCENTIVE

- BASED STRATEGIES TO REPLACE HEAVY DUTY TRUCKS AND RESIDENTIAL WOOD BURNING DEVICES; APPROVE RESOLUTION 15

- 4

- 7B TO AMEND RESOLUTION 10

- 10

- 14 TO CONTINUE NECESSARY AB 2522 D MV FUNDING FOR INCENTIVE

- BASED COMMITMENTS IN THE PLAN TO REDUCE MOBILE SOURCE EMISSIONS April 16, 2015

technical staff, including close coordination with the District. In addition to the modeling by ARB, the D istrict has also performed extensive analys e s that provide additional supporting evidence that the plan will effectively bring the Valley into attainment. Overall, the modeling and supporting technical analysis demonstrate s that the emissions reductions a chieved through the plan’s control strategy bring the entire Valley into attainment of the 1997 federal 24

- hour PM2.5 standard by 2018 and annual PM2.5 standard by 2020.

**Request for Extension of Attainment Deadline**

As a Serious nonattainment area, the V alley would have until December 31, 2015 to attain the 1997 PM2.5 standard as determined using air monitoring data collected in calendar years 2013 through 2015. Under Section 1 88(e) of the federal CAA , EPA may grant a one

- time extension of the attainment date of up to five years for a Serious nonattainment area beyond the attainment deadline specified in Section 188(c)(2)

. To be granted an extension, an area must show that it cannot attain by December 2015, but will attain as expeditiously as possible

, and no later than 2020. In this plan, the District requests an extension of the attainment deadline for the 24

- hour standard to 2018 and the annual standard to 2020, based on the following findings:

• Attainment by the December 31 , 2015 deadline is impracticable

• All r equirements and c ommitments in the implementation plan have been met

• The 2015 PM2.5 Plan c ontains Most Stringent Measures (MSM) and Best Available Control Measures (BACM)

• The 2015 PM2.5 Plan includes a demonstration of attainment by the most expeditious alternative date s practicable for both the annual and 24

- hour standards.

**Commitment to Achieve Extra Reductions in Emissions**

As discussed earlier, the 2015 PM2.5 Plan contains Most Stringent Measures, Best Available Control Measures, and ensures expeditious attainment. However, the District and the ARB are committed to leaving no stone unturned to ensure attainment as rapidly as possible. Towards that end, this plan contains commitments for the following additional reductions in emissions:

Replace Heavy Duty Trucks

– Using motor vehicle surcharge funds generated by the District under AB 2522, the District commits to allocating $10,000,000, for the period of 2016 thro ugh 2020 to replace between 152 to 200 heavy duty trucks in the Valley and reduce up to 0.33 tpd NOx . These funds will be expended through the District’s truck

6SJV U

APCD Governing Board ADOPT 2015 PLAN FOR THE 1997 PM2.5 STANDARD, INCLUDING REQUEST TO EXTEND ATTAINMENT DEADLINE; APPROVE ASSOCIATED COMMITMENTS TO CONTINUE TO LEAVE NO STONE UNTURNED IN ASSESSING FUTURE AMENDMENTS TO DISTRICT RULES THAT MAY PROVIDE ADDITIONAL FEASIBLE REDUCTIONS; APPROVE COMMITMENTS TO ACHIE VE FURTHER REDUCTIONS IN PARTICULATE EMISSIONS AND ITS PRECURSORS THROUGH INCENTIVE

- BASED STRATEGIES TO REPLACE HEAVY DUTY TRUCKS AND RESIDENTIAL WOOD BURNING DEVICES; APPROVE RESOLUTION 15

- 4

- 7B TO AMEND RESOLUTION 10

- 10

- 14 TO CONTINUE NECESSARY AB 2522 D MV FUNDING FOR INCENTIVE

- BASED COMMITMENTS IN THE PLAN TO REDUCE MOBILE SOURCE EMISSIONS April 16, 2015

replacement incentive program and reductions in emissions will be surplus to the State Truck and Bus Regulation.

Despite achieving over 80% reductions in emissions and lowering the number of days exceeding the 1

- hour ozone standard from 56 days in 1996 to only 7 days

, in 2010 the Valley faced the imposition of federal nonattainment penaltie s under Section 185 of the federal CAA . Absent action by the District at that time, EPA would have been required by federal law to collect $29 million per year of penalties plus interest from Valley businesses

. Federal laws would have also required that any fees collected under Section 185 be deposited in the United States Treasury with no return or benefit to the Valley

. Instead

, in October 2010, the Governing Board pursued a more creative option to satisfy the federal CAA in a manner that fairly distributed the responsibility amongst stationary and mobile sources and allowed the District to retain funds for investment in the Valley rather than surrendering those revenues to the federal government. AB 2522 (Arambula, 2008) granted the District the authority to impose surcharge fees of up to $24 per motor vehicle for the purpose of meeting federal mandates. To fulfill this federal mandate, the District acted on this authority and adopted a $12 per motor vehicle surcharge with a commitment for reinv estment of all revenues in the San Joaquin Valley for voluntary emission reduction projects. The authority under AB 2522 sunsets in 2024 and the District has submitted a request to federal EPA to lift the Section 185 nonattainment penalties. The AB 2522 revenues are being used to address the Valley’s unmatched challenges in meeting ever

- tightening federal standards as well as providing a more equitable manner to satisfy the federal mandates for ozone nonattainment penalties under S ection 185 . Formal acti on by EPA to lift the Section 185 penalties will return local control over the need and magnitude of necessary DMV revenues. Today’s recommendation if approved by your Board will support commitments for further reductions in emissions required by EPA to g rant a one

- time five year extension of the attainment deadline, and will enable your Board to revoke imposition of the DMV surcharge fees under AB 2522 upon a finding by your Board that such revenues are no longer necessary to fulfill mandates under the federal CAA

.
Replace Residential Wood Burning Devices

– Through the use of locally

- generated funding, the District commits to allocating $7,500,000, for the period of 2016 thro ugh 2020 to replace between 4,000 to 7,500 old er high er polluting residential wood burning devices in the Valley with cleaner alternatives . These funds will be expended through the District’s Burn Cleaner Incentive Program and are expected to reduce up to 0 .4 tpd direct PM2.5 emissions, surplus to District Rule 4901.

7SJV U

APCD Governing Board ADOPT 2015 PLAN FOR THE 1997 PM2.5 STANDARD, INCLUDING REQUEST TO EXTEND ATTAINMENT DEADLINE; APPROVE ASSOCIATED COMMITMENTS TO CONTINUE TO LEAVE NO STONE UNTURNED IN ASSESSING FUTURE AMENDMENTS TO DISTRICT RULES THAT MAY PROVIDE ADDITIONAL FEASIBLE REDUCTIONS; APPROVE COMMITMENTS TO ACHIE VE FURTHER REDUCTIONS IN PARTICULATE EMISSIONS AND ITS PRECURSORS THROUGH INCENTIVE

- BASED STRATEGIES TO REPLACE HEAVY DUTY TRUCKS AND RESIDENTIAL WOOD BURNING DEVICES; APPROVE RESOLUTION 15

- 4

- 7B TO AMEND RESOLUTION 10

- 10

- 14 TO CONTINUE NECESSARY AB 2522 D MV FUNDING FOR INCENTIVE

- BASED COMMITMENTS IN THE PLAN TO REDUCE MOBILE SOURCE EMISSIONS April 16, 2015

ARB Commitments for Additional Reductions

– In addition to the above commitments by the District for additional reductions in emissions, ARB has also committed to do their part by c ommitting to provide additional reductions in emissions for sources under their control. ARB staff will propose a commitment on actions for key truck sectors in the Valley to better ensure benefits from the Truck and Bus regulation, and p ursue opportuniti es for the replacement of trucks certified to the State’s optional low NOx standard.

**Commitment to Evaluate Additional Opportunities Beyond**  **the 2015 PM2.5 Plan**

Despite the fact that this plan contains all the necessary elements for approval including BACM and MSM , the District is fully aware that meeting the tougher newer a ir q uality

s tandards require additional efforts and further reductions in emissions. Over the next year, the District must adopt SIP s to address the 2006 PM2.5 Standard ( annual: 15 μg/m 3 , 24

- hr: 35 μg/m 3 ) and the 2012 PM2.5 Standard ( annual: 12 μg/m 3 , 24

- hr: 35 μg/m 3 ). Additionally, the District must also develop a SIP for the 2008 8

- hour o zone Standard (75 ppb) by July 2016.

As always, the District will leave no stone unturned to evaluate and identify further opportunities to advance attainment of the ever

- tightening NAAQS . Of course, the opportunities identified to reduce emissions towards meeting these tougher standards may also help expedite attainment with the 199 7 PM2.5 standard addressed by this plan. In developing these plans, the District will reevaluate all of its existing regulations and will explore all potential measures for all source categories. However, in the short term, the District commits to conduc t the following evaluations and to include any identified feasible additional actions for reducing emissions with implementation schedules in the District’s SIP submission for the 2012 PM2.5 NAAQS in the fall of 2016.

Flares ( Rule 4311 )

– As demonstrated in Appendix C of the 2015 PM2.5 Plan , District Rule 4311 already meets BACM and MSM requirements. However, due to the need to demonstrate attainment for multiple federal ozone and PM2.5 standards in the coming years and need to search for all available em issions reductions, the District commits to undertaking a comprehensive review of Flare Minimization Plans ( FMPs ) submitted under Rule 4311. The District commits to conduct the evaluation and have a draft report available for public review and commenting by December 1, 2015. After addressing public comments, the District commits to finalize this report by March 31, 2016. This evaluation will be conducted in close coordination with flare operators in the Valley and will include the following elements:

8SJV U

APCD Governing Board ADOPT 2015 PLAN FOR THE 1997 PM2.5 STANDARD, INCLUDING REQUEST TO EXTEND ATTAINMENT DEADLINE; APPROVE ASSOCIATED COMMITMENTS TO CONTINUE TO LEAVE NO STONE UNTURNED IN ASSESSING FUTURE AMENDMENTS TO DISTRICT RULES THAT MAY PROVIDE ADDITIONAL FEASIBLE REDUCTIONS; APPROVE COMMITMENTS TO ACHIE VE FURTHER REDUCTIONS IN PARTICULATE EMISSIONS AND ITS PRECURSORS THROUGH INCENTIVE

- BASED STRATEGIES TO REPLACE HEAVY DUTY TRUCKS AND RESIDENTIAL WOOD BURNING DEVICES; APPROVE RESOLUTION 15

- 4

- 7B TO AMEND RESOLUTION 10

- 10

- 14 TO CONTINUE NECESSARY AB 2522 D MV FUNDING FOR INCENTIVE

- BASED COMMITMENTS IN THE PLAN TO REDUCE MOBILE SOURCE EMISSIONS April 16, 2015

1. The District will review submitted FMPs to identify the most effective flare minimization practices utilized by operators to reduce flaring in various source categories and applications. Upon completion of review, the District commits to working closely with affected operators to evaluate and implement, when feasible, the most effective flare minimization practices through the FMP submittal and approval process under Rule 4311.

2. The District will evaluate the technological achievability and economic feasibility of implementing new/additional minimization practices or technologies at affected facilities.

Warm Mix Asphalt (WMA)

– Emissions from asphalt usage are extremely small and do not significantly contribute to elevated PM2.5 levels in the Valley . However, due to the need to demonstrate attainment for multiple federal ozone and PM2.5 standards in the coming years and need to search for all available emissions reductions, the District commits to a number of actions to evaluate and promote the use of WMA in the Valley. The District commits to conduct the evaluation and have a draft report available for public review and commenting by December 1, 2015. After addressing public comments, the District commits to finalize this report by March 31, 2016. This evaluation will be conducted in close coordination with stakeholders (asphalt plant operators, Caltrans, city and county planning departments, ARB, EPA, and others) and will include the following elements:

1. The District will evaluate opportunitie s to further encourage transportation and county agencies to continue transitioning from HMA to WMA as feasible. As part of this evaluation, the District will explore the potential feasibility of additional control measures and granting mitigation credits for WMA usage through the District’s Indirect Source Review (ISR) program.

2. The District will evaluate potential outreach and education opportunities for encouraging project developers/construction managers to increase their adoption and implementation of WMA.

Conservation Management Practices (Rule 4550)

– As documented in Appendix C of the 2015 PM2.5 Plan , District Rule 4550 already meets BACM and MSM requirements. It is also questionable that further opportunities for reducing PM2.5 emissions exist

. However, as stated earlier, in developing plans for the new and existing National Ambient Air Quality Standards, the District will reevaluate all existing regulations including Rule 4550 to evaluate all feasible opportunities for additional emissions

9SJV U

APCD Governing Board ADOPT 2015 PLAN FOR THE 1997 PM2.5 STANDARD, INCLUDING REQUEST TO EXTEND ATTAINMENT DEADLINE; APPROVE ASSOCIATED COMMITMENTS TO CONTINUE TO LEAVE NO STONE UNTURNED IN ASSESSING FUTURE AMENDMENTS TO DISTRICT RULES THAT MAY PROVIDE ADDITIONAL FEASIBLE REDUCTIONS; APPROVE COMMITMENTS TO ACHIE VE FURTHER REDUCTIONS IN PARTICULATE EMISSIONS AND ITS PRECURSORS THROUGH INCENTIVE

- BASED STRATEGIES TO REPLACE HEAVY DUTY TRUCKS AND RESIDENTIAL WOOD BURNING DEVICES; APPROVE RESOLUTION 15

- 4

- 7B TO AMEND RESOLUTION 10

- 10

- 14 TO CONTINUE NECESSARY AB 2522 D MV FUNDING FOR INCENTIVE

- BASED COMMITMENTS IN THE PLAN TO REDUCE MOBILE SOURCE EMISSIONS April 16, 2015

reductions, if any. The District commits to conduct the evaluation and have a draft report available for public review and commenting by May 31, 2016. After addressing public comments, the District commits to finalize this report by October 15, 2016. Th is evaluation will be conducted in close coordination with stakeholders (agricultural industry representatives, ARB, EPA, NRCS, farm bureaus, and others).

**Public Review Process for the Proposed 2015 Plan for the 1997 PM2.5 Standard**

The 2015 PM2.5 Plan was prepared through an involved public process that provided multiple opportunities for the general public and interested stakeholders to offer suggestions and comments for improving and strengthening the plan. The District has worked closely with t hese various stakeholders, including its partner agencies ARB and EPA, environmental and community advocacy groups, and business representatives to share information regarding the plan and to receive comments and suggestions.

Numerous opportunities were provided for public input in 2014 during District Governing Board public hearings, Citizen’s Advisory Committee public meetings and Environmental Justice Advisory Group public meetings. The District also met with interested advocacy and industry represent atives throughout the plan development process to address specific questions and comments, and solicit further suggestions for control strategies. The District held a public workshop for this plan on March 4, 2015 that outlined the air quality challenges faced by the Valley and potential strategies for responding to the challenge s . The workshop was held at the District’s offices in Modesto, Fresno, and Bakersfield and by webcast, with many participants attending and providing feedback during the workshop.

All of these meetings have provided opportunities for the public to provide verbal comments, and written comments have also been accepted throughout development of this plan. These comments have been integral to the development of this plan, and have been incorporated as appropriate. All significant comments and responses are summarized in Appendix H of this plan.

Some of the key issues raised during development of the 2015 PM2.5 Plan are summarized below:

10SJV U

APCD Governing Board ADOPT 2015 PLAN FOR THE 1997 PM2.5 STANDARD, INCLUDING REQUEST TO EXTEND ATTAINMENT DEADLINE; APPROVE ASSOCIATED COMMITMENTS TO CONTINUE TO LEAVE NO STONE UNTURNED IN ASSESSING FUTURE AMENDMENTS TO DISTRICT RULES THAT MAY PROVIDE ADDITIONAL FEASIBLE REDUCTIONS; APPROVE COMMITMENTS TO ACHIE VE FURTHER REDUCTIONS IN PARTICULATE EMISSIONS AND ITS PRECURSORS THROUGH INCENTIVE

- BASED STRATEGIES TO REPLACE HEAVY DUTY TRUCKS AND RESIDENTIAL WOOD BURNING DEVICES; APPROVE RESOLUTION 15

- 4

- 7B TO AMEND RESOLUTION 10

- 10

- 14 TO CONTINUE NECESSARY AB 2522 D MV FUNDING FOR INCENTIVE

- BASED COMMITMENTS IN THE PLAN TO REDUCE MOBILE SOURCE EMISSIONS April 16, 2015

The potential for ammonia emissions reductions to assist with attainment

Comment: Commenters raised questions in regards to the District’s strategy in prioritizing NOx emission reductions and not focusing on ammonia emissions as playing

a potential role in assisting the Valley with attaini ng the federal PM2.5 standard

. (CVAQ)

Response: These commenters mistakenly believe that ammonia reductions could assist the Valley in attaining the standard earlier than proposed in the plan. The proposed plan control strategy achieves the emissions re ductions necessary to bring the Valley into attainment, primarily through PM2.5 and NOx emissions reductions. Most areas of the Valley will reach attainment well before the proposed deadlines in the 2015 PM2.5 Plan

. T he District’s incentive programs, public outreach, and other innovative strategies will help expedite air quality improvements as this plan is implemented. Although the plan shows expeditious attainment and includes a comprehensive control strategy for direct PM2.5 emissions and significa nt PM2.5 precursors, the District and ARB explored the effectiveness of ammonia reductions in reducing PM2.5 concentrations.

The review of extensive science on this subject and modeling conducted conclude that reducing ammonia emissions is orders of magn itude less effective in reducing PM2.5 concentrations than reducing directly emitted PM2.5 or NOx emissions. There is a relative abundance of ammonia compared to nitric acid, and the amount of nitric acid drives the ultimate formation of ammonium nitrate. Because of this regional surplus in ammonia, even substantial ammonia emissions reductions yield a relatively small reduction in nitrate. Reductions in nitrate concentrations of 30% to 50% were realized through a 50% reduction in NOx. Modeling a 50% red uction in ammonia , while unrealistic and not technologically achievable, would only realize less than 5% reductions in nitrate concentrations.

Despite the fact that ammonia is an insignificant PM2.5 precursor in the Valley, the District evaluated curren t ammonia controls in Appendix C (BACM and MSM for Stationary and Area Sources) of this plan. The analyses show that the Valley’s ammonia emissions have been significantly reduced through stringent District regulations and current regulations implement BA CM and MSM in the Valley. For example, t he District has already reduced ammonia emissions from confined animal facilitie s , the largest source of ammonia emissions under its jurisdiction, by over 100 tons per day through adoption of Rule 4570 (Confined Ani mal Facilities), the most

11SJV U

APCD Governing Board ADOPT 2015 PLAN FOR THE 1997 PM2.5 STANDARD, INCLUDING REQUEST TO EXTEND ATTAINMENT DEADLINE; APPROVE ASSOCIATED COMMITMENTS TO CONTINUE TO LEAVE NO STONE UNTURNED IN ASSESSING FUTURE AMENDMENTS TO DISTRICT RULES THAT MAY PROVIDE ADDITIONAL FEASIBLE REDUCTIONS; APPROVE COMMITMENTS TO ACHIE VE FURTHER REDUCTIONS IN PARTICULATE EMISSIONS AND ITS PRECURSORS THROUGH INCENTIVE

- BASED STRATEGIES TO REPLACE HEAVY DUTY TRUCKS AND RESIDENTIAL WOOD BURNING DEVICES; APPROVE RESOLUTION 15

- 4

- 7B TO AMEND RESOLUTION 10

- 10

- 14 TO CONTINUE NECESSARY AB 2522 D MV FUNDING FOR INCENTIVE

- BASED COMMITMENTS IN THE PLAN TO REDUCE MOBILE SOURCE EMISSIONS April 16, 2015

stringent rule of its kind in the nation. The District did not find any additional feasible measures that could significantly reduce ammonia emissions.

SIP

- creditability of incentive P rograms and District Rule 9610

C omment : Emission reductions that the District intends to use from incentive programs under Rule 9610 are not SIP

- creditable. (CVAQ)

Response: Incentive programs are an integral part of the emission reduction efforts of the District. These programs have inve sted over $1 billion in public/private funding towards incentive

- based emission reduction projects that have reduced over 100,000 tons of NOx, VOC, and PM2.5 emissions since 1992. District incentive programs have been modeled on effective state incentive programs like the Carl Moyer Program. Enforceability has already been built into the District incentive programs through requirements that include pre and post project equipment inspections, monitoring, and reporting. Rule 9610 provides the mechanism for the District to take credit for these surplus, quantifiable, and enforceable emissions reductions. EPA approved Rule 9610

on February 26 , 2015 , finding that incentive

- based emissions reductions are fully SIP

creditable.

FISCAL IMPACT :

This 2015 Plan for the 1997 PM2.5 Standard describes a major air quality strategy that will be implemented in the future over a period of several years. While the workload implications will likely be significant and affect several District departments , the extent of the fiscal impact on future budgets is uncertain. As the fiscal impacts of the 2015 Plan for the 1997 PM2.5 Standard become more defined, staff will request the needed resources from your Board either through annual budget requests or mid

- year budget adjustments. Therefore, no modification of the District’s budget is necessary at this time.

Attachments: Attachment A : Resolution 15

- 4

- 7A: Adopting t he San Joaquin Valley Unified Air Pollution Control District 2015 Plan for the 1997 PM2.5 Standard ( 8 pages) Attachment B: Resolution 15

- 4

- 7B : Use of AB 2522 DMV fees to meet federal CAA mandates ( 5 pages ) Attachment C: Proposed 2015 Plan for the 1997 PM2.5 Standard (722 pages)

12