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### 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SJVUAPCD GoverningBoard ADOPTAMENDMENTS TO RULE3170 (FEDERALLYMANDATED OZONENONATTAINMENTFEE) May 19,2011

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

IN THE MATTEROF: PROPOSED ) RESOLUTION NO. 11-05-20 AMENDMENTS TO RULE 3170 ) (FEDERALLYMANDATED 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 SafetyCode Sections 41050to 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 ofDivision 26 ofthe Health and SafetyCode; 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 ofthe federal Clean Air Act, the United States Environmental Protection Agency has designated the San Joaquin ValleyAir Basin an extreme nonattainment area for the national eight-hour and now-revoked one-hour health-based ozone airqualitystandards; 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-hourstandard; and

WHEREAS, Clean Air Act section 185 requires the District to adopt a rule that imposes nonattainment 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 1990E. Gettysburg Ave.

Fresno, CA 93726 -1- Resolution ForAmendments to Rule 3170

(559) 230-60001 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SJVUAPCD 1990E. GettysburgAve.

Fresno, CA 93726

(SS9) 230-6000 SJVUAPCD GoverningBoard ADOPTAMENDMENTS TO RULE3170 (FEDERALLYMANDATED OZONENONATTAINMENTFEE) May 19, 2011

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WHEREAS, Clean Air Act section 182(f) makes the section 185 penalty fee applicable to majorstationary sources ofoxides ofnitrogen ("NOx"); and

WHEREAS, the District submitted District Rule 3170 (Federally Mandated Ozone Nonattainment Fee) to EPAas its section 185fee 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 ofthe one-hourozone 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 partofthe nonattainmentpenaltyfees 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 ofthe District's regulatoryjurisdiction; 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 forstationary sourcefees undercertain circumstances; and

WHEREAS, a public hearing forthe adoption of proposed amendments to Rule 3170 (Federally Mandated Ozone Nonattainment Fee) was duly noticed for May 19, 2011, in accordancewith California Health and SafetyCode Section 40725.

NOW,THEREFORE, BE IT RESOLVEDAS 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 ForAmendments to Rule 31701 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SJVUAPCD GoverningBoard ADOPTAMENDMENTS TO RULE3170 (FEDERALL YMANOATEO OZONENONATTAINMENTFEE) May 19,2011 adoption, and will implement and satisfythe requirements ofSection 185 ofthe Clean AirAct. 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 accordancewith 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 industrytestimony, and on the record forthis 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 ofthe Clean AirAct. b. AUTHORITY. The Governing Board finds that it has the legal authority for rulemaking underthe 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 directlyaffected bythis 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, orstate orfederal regulations.

e. NONDUPLICATION. The Governing Board finds that this rule does not imposethe same requirements as anyexisting state orfederal 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).

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Fresno, CA 93726 -3- Resolution ForAmendments to Rule 3170

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Fresno, CA 93726

(559) 230-6000 SJVUAPCD GoverningBoard ADOPTAMENDMENTS TO RULE3170 (FEDERALLYMANDATED OZONENONATTAINMENTFEE) 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 ofthe District:

a. Certifies thatthe attached Initial Study and Negative Declaration reflect the independentjudgmentofthe District; and b. Approves and adopts the attached Negative Declaration for the rule pursuantto 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 ofeach ofthe 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 ofthis rulemaking proceeding in accordance with California Health and Safety Code Section 40728. 11/ 

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Fresno, CA 93726

(559) 230-6000 SJVUAPCD Governing Board ADOPTAMENDMENTS TO RULE3170 (FEDERALLYMANDATED OZONENONATTAINMENTFEE) 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 dayofMay 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 

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# ~n IJ. Steven Worthley, Chair Governing Board

ATTEST: Clerktothe

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# BYDluQua4~ Michelle Franco /II /II /II 

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-5- Resolution ForAmendments to Rule 3170