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SJVUAPCD Governing Board 

ADOPT AMENDMENTS TO RULE 3170 (FEDERALL Y MANDA TED OZONE NONA TTAINMENT FEE) 

May 19,2011 

BEFORE THE GOVERNING BOARD OF THE 


SAN JOAQUIN VALLEY UNIFIED 


AIR POLLUTION CONTROL DISTRICT 


IN THE MATTER OF: PROPOSED ) RESOLUTION NO. 11-05-20 

AMENDMENTS TO RULE 3170 ) 

(FEDERALLY MANDATED OZONE ) 

NONATTAINMENT FEE) ) 

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

duly constituted unified air pollution control district, as provided in California Health 

and Safety Code Sections 41050 to 40161; and 

WHEREAS, the District is authorized by California Health and Safety Code Section 

40702 to make and enforce all necessary and proper orders, rules, and regulations to 

accomplish the purpose of Division 26 of the Health and Safety Code; and 

WHEREAS, Section 110(a)(2) of the federal Clean Air Act requires all States to 

develop and maintain a solid air quality management infrastructure, including 

enforceable emission limitations, an ambient monitoring program, an enforcement 

program, air quality modeling, and adequate personnel, resources, and legal authority. 

WHEREAS, pursuant to Section 107 of the federal Clean Air Act, the United States 

Environmental Protection Agency has designated the San Joaquin Valley Air Basin an 

extreme nonattainment area for the national eight-hour and now-revoked one-hour 

health-based ozone air quality standards; and 

WHEREAS, the EPA revoked the national one-hour ozone air quality standard (0.12 

ppb) effective June 15, 2005 and replaced that standard with the more healthprotective national eight-hour standard; and 

WHEREAS, Clean Air Act section 185 requires the District to adopt a rule that 

imposes non attainment penalty fees on facilities that are major stationary sources of 

volatile organic compounds ("VOCs") in the event that the Valley does not meet the 

November 2010 attainment deadline for the now-revoked federal one-hour ozone 

standard; and 

SJVUAPCO 

1990 E. Gettysburg Ave. 

Fresno, CA 93726 -1- Resolution For Amendments to Rule 3170 

(559) 230-6000 
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SJVUAPCD 

1990 E. Gettysburg Ave. 

Fresno, CA 93726 

(SS9) 230-6000 

SJVUAPCD Governing Board 


ADOPT AMENDMENTS TO RULE 3170 (FEDERALLY MANDATED OZONE NONATTAINMENT FEE) 


May 19, 2011 . 


WHEREAS, Clean Air Act section 182(f) makes the section 185 penalty fee 

applicable to major stationary sources of oxides of nitrogen ("NOx"); and 

WHEREAS, the District submitted District Rule 3170 (Federally Mandated Ozone 

Nonattainment Fee) to EPA as its section 185 fee plan in August 2002; and 

WHEREAS, EPA published in Volume 75, Number 8, of the Federal Register 

(January 13, 2010, pages 1716-1723) a final limited approval and limited disapproval 

of District Rule 3170, effective February 12, 2010; and 

WHEREAS, the Court of Appeals for the District of Columbia Circuit has held that 

section 185 fees remain applicable to one-hour ozone nonattainment areas 

notwithstanding EPA's revocation of the one-hour ozone standard; and 

WHEREAS, a January 2010 Environmental Protection Agency guidance document 

provides that Clean Air Act section 172(e) allows nonattainment areas to submit an 

alternative equivalent program for meeting section 185 mandates by assessing all or 

part of the nonattainment penalty fees to mobile sources; and 

WHEREAS, more than 80 percent of the Valley's NOx emissions, the leading 

contributor to the Valley's ozone and particulate exceedances, come from mobile 

sources outside of the District's regulatory jurisdiction; and 

WHEREAS, the District proposes to amend Rule 3170 to incorporate an alternative 

equivalent program to the section 185 mandate that substitutes vehicle registration 

fees for stationary source fees under certain circumstances; and 

WHEREAS, a public hearing for the adoption of proposed amendments to Rule 3170 

(Federally Mandated Ozone Nonattainment Fee) was duly noticed for May 19, 2011, in 

accordance with California Health and Safety Code Section 40725. 

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 

1. The Governing Board hereby amends Rule 3170 (Federally Mandated Ozone 

Nonattainment Fee), as set forth in the proposed rule submitted herewith and 

incorporated herein by this reference. Amendments to Rule 3170 (Federally 

Mandated Ozone Nonattainment Fee) shall become effective on the date of its 

-2- Resolution For Amendments to Rule 3170 
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SJVUAPCD Governing Board 

ADOPT AMENDMENTS TO RULE 3170 (FEDERALL Y MANOA TEO OZONE NONA TTAINMENT FEE) 

May 19,2011 

adoption, and will implement and satisfy the requirements of Section 185 of the Clean 

Air Act. 

2. The Governing Board hereby finds, based on the evidence and information 

presented at the hearing upon which its decision is based, all notices required to be 

given by law have been duly given in accordance with Health and Safety Code 

Section 40725, and the Board has allowed public testimony in accordance with Health 

and Safety Code Section 40726. 

3. In connection with this rulemaking, the Board makes the following findings as 

required by California Health and Safety Code Section 40727: 

a. NECESSITY. The Governing Board finds based on the staff report, on 

public and industry testimony, and on the record for this rulemaking proceeding that a 

need exists for rule amendments consistent with the provisions of the federal Clean 

Air Act. This rule is necessary to meet the requirements of Sections 181(d), 182(e), 

182(f) and 185 of the Clean Air Act. 

b. AUTHORITY. The Governing Board finds that it has the legal authority 

for rulemaking under the California Health & Safety Code Sections 40000 and 40001. 

c. CLARITY. The Governing Board finds that this rule is written or 

displayed so that the meaning can be easily understood by those persons or 

industries directly affected by this rule. 

d. CONSISTENCY. The Governing Board finds that this rule IS in 

harmony with, and not in conflict with or contradictory to, existing statutes, court 

decisions, or state or federal regulations. 

e. NON DUPLICATION. The Governing Board finds that this rule does not 

impose the same requirements as any existing state or federal regulation. 

f. REFERENCE. The Governing Board finds that this rulemaking 

implements Clean Air Act sections 182(f) and 185, under the principles of Clean Air 

Act section 172(e). 

SJVUAPCD 

1990 E. Gettysburg Ave. 

Fresno, CA 93726 -3- Resolution For Amendments to Rule 3170 

(559) 230-6000 
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SJVUAPCD 

1990 E. Gettysburg Ave. 

Fresno, CA 93726 

(559) 230-6000 

SJVUAPCD Governing Board 

ADOPT AMENDMENTS TO RULE 3170 (FEDERALL Y MANDATED OZONE NONATTAINMENT FEE) 

May 19,2011 

4. The District has completed an Initial Study for Rule 3170 that indicates the 

project will not result in any significant adverse effects to the environment, and a 

Proposed Negative Declaration has been prepared and properly noticed pursuant to 

the California Environmental Quality Act ("CEQA") Guidelines. The Governing Board 

of the District has duly considered the Initial Study and Proposed Negative 

Declaration. Accordingly, the Governing Board of the District: 

a. Certifies that the attached Initial Study and Negative Declaration reflect the 

independent judgment of the District; and 

b. Approves and adopts the attached Negative Declaration for the rule 

pursuant to CEQA requirements. 

5. In accordance with the provisions of Section 15075 of the CEQA guidelines, 

the Executive Director/Air Pollution Control Officer is directed to file a Notice of 

Determination with the County Clerks of each of the counties in the District. 

7. The Executive Director/Air Pollution Control Officer is directed to transmit this 

rule to the California Air Resources Board for incorporation into the State 

Implementation Plan (SIP). 

6. The Executive Director/Air Pollution Control Officer is directed to file with all 

appropriate agencies certified copies of this resolution and the rule adopted herein 

and is directed to maintain a record of this rulemaking proceeding in accordance with 

California Health and Safety Code Section 40728. 

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-4- Resolution For Amendments to Rule 3170 
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SJVUAPCD 

1990 E. Gettysburg Ave. 

Fresno, CA 93726 

(559) 230-6000 

SJVUAPCD Governing Board 

ADOPT AMENDMENTS TO RULE 3170 (FEDERALL Y MANDATED OZONE NONATTAINMENT FEE) 

May 19,2011 

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

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

19th day of May 2011, to wit: 

AYES: 	 Barba, Case ,Dominici , Walsh, Miller, 

hTatson, Ornellas, Vierra, Worthley 

NOES: 	 None 

ABSENT: Telles, Lane, Johnston 

ABSTAIN: Forman, O'Brien 

SAN JOAQUIN VALLEY UNIFIED 

AIR POLLU ION CONTROL DISTRICT 

ByOt ~n IJ. Steven Worthley, Chair 

Governing Board 

ATTEST: 


Clerk to the Gover~~ 

BYDluQua4~ Michelle Franco 

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-5- Resolution For Amendments to Rule 3170