SAN JOAQUIN VALLEY AIR POLLU TION CONTROL DISTRICT

FINAL STAFF REPORT

PROPOSED RE-ADOPTION OF RULE 4570 (CONFINED ANIMAL FACILITIES)

June 18, 2009

Prepared by: Sandra Lowe-Leset h, Air Quality Engineer

Reviewed by: Errol Villegas , Program Manager, Planning Scott Nester, Director of Planning

I. PURPOSE OF THIS REPORT

The San Joaquin Valley Air Pollution Control District has been ordered by the Superior Court of Fresno County to set aside Rule 4570 (Confined Animal Fa cilities) until the District specifically analyzes, and the Governing Board cons iders, the air quality-related public health impact of confined animal faciliti es (CAFs) and the public health benefits of Rule 4570. The District is proposing to re -adopt Proposed Rule 4570 on June 18, 2009.

The purpose of this report is to summarize the District’s recent and proposed actions regarding Rule 4570. Because most of the rule’s impacts were described in documents published in 2006, this report does not re-s ummarize the rule’s environmental and economic impacts. The attachm ents to this staff report in clude a new Public Health Impact Analysis (Appendix A), an updated Califor nia Environmental Quality Act (CEQA) Proposed Negative Declaration (Appendix B), and the entire 2006 Final Staff Report for Proposed Rule 4570 and the at tachments published at that time (Appendix C).

Confined animal facilities are used in the ra ising of livestock for the purpose of providing dairy products, meat, and eggs. Due to the different me thods of confinement, business plans, and physical and environmental constr aints, there are numerous designs for CAFs. The design and operation of a CAF varies depending on animal type, regional climatic conditions, business practices, and pr eferences of the operators. California has become the largest producer of milk in the nation. T he eight counties of the San Joaquin Valley are all in the top-ten California counties for milk production. Thus, dairies play a significant role in the Va lley’s economy, and other types of CAFs bring considerable jobs and income into the Valley.

Confined animal facilities generate several kinds of air pollutants, most notably volatile organic compounds (VOC), ammonia, and methane, a potent greenhouse gas. The San Joaquin Valley air basin has a serious ai r pollution problem, partly caused by VOCs emitted by CAFs. Rule 4570 requires CAF operators to perform certain mitigation measures with the objective of prev enting or reducing VOC emissions.

1 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

2 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 II. THE 2006 ADOPTION OF RULE 4570

There were two main reasons for the adoptio n of Rule 4570. The first was that the control of this source category was a c ontrol measure in the District’s 2004 Extreme
Ozone Attainment Plan. As a control meas ure, the VOC reductions were necessary, based on computer modeling of the air basin, to bring the District into attainment of the

one-hour ozone standard.

The second reason was Senate Bill 700 (SB 700). On September 22, 2003, Governor Gray Davis signed into law SB 700. The bill amended air pollution control requirements in the California Health and Safety Code (CH&SC) to include requirements for agricultural sources of air pollution. Ca lifornia law had previously exempted these sources from requirements to obtain air permits. For San Joaquin Valley, SB 700 required that the rule or r egulation adopted pursuant to this requirement do all of the following:

1. Require the owner or operator of each la rge confined animal facility to submit an application for a permit within six months from the date the rule or regulation is adopted by the district that in cludes both of the following:

A. The information that the district determines is necessary to prepare an emissions inventory of all regulat ed air pollutants em itted from the operation, including, but not limited to, precursor and fugitive emissions, using emission factors approved by t he state board in a public hearing.

B. An emissions mitigation plan that demonstrates that t he facility will use

best available retrofit control technol ogy to reduce emissions of pollutants

that contribute to the nonattainment of any ambient air quality standard,

and that are within the distri ct's regulatory authority.

2. Require the district to act upon an application for permi t within six m onths of a completed application.

3. Require the owner or operator to implement the plan contained in the permit approved by the district, and shall estab lish a reasonable period, of not more than three years, after which each permi t shall be reviewed by the district and updated to reflect changes in the operati on or the feasibility of mitigation

measures.

4. Establish a reasonable compliance schedul e for facilities to implement control measures within one year of the date on which the permit is approved by the district, and shall provide for 30 days public notice and comment on any draft permit.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

3 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 As part of the development process for Ru le 4570, District staff conducted public scoping meetings in April 2005, public workshops and a Socioeconomic Focus Group meeting in March 2006 in order to present, discuss, and solicit comments on the draft rule. In addition to the workshops, sta ff met with representativ es of the impacted industries, and control technology vendors to receive comments on the technical aspects and compliance costs of the propos ed rule. The comments received from the public, affected sources, ARB, and US Envi ronmental Protection Agency (EPA) during the public workshop process and technical cons ultation meetings were incorporated into the rule as appropriate. On June 15, 2006, the District’s Governing Board adopted Rule 4570 (Confined Animal Facilities) to meet the District’s obligations under SB 700. Rule 4570 has been submitted to EPA for approval in the State Implement ation Plan, but the rule has not yet been acted on by EPA.

Because the San Joaquin Valley is one of th e largest agricultural areas in the state,
Rule 4570 served as the model for other Californi a air districts. District staff is working on amendments to the rule in response to 2007 Ozone Plan, which has Rule 4570

emission reductions as a control measure. Going beyond the SB 700 mandates for large CAF, some concepts being explored incl ude expanding the rule applicability to smaller facilities and requiring that each facility implement more emission mitigation

measures.

III. RULE 4570 REQUIREMENTS

SB 700 required that ARB define large CAFs and t hat individual air di stricts implement a

rule to limit emissions from these large facilities. ARB defines a large CAF as operations that have the following number of animals on their property:

Livestock Category Large CAF definition
Dairy 1,000 milking cows

Beef Feedlot 3,500 beef cattle Other Cattle Facility 7,500 calves, heifers, or other cattle Poultry Facility

Chicken 650,000 head

Duck 650,000 head Turkey 100,000 head Swine Facility 3,000 head Horses Facility 2,500 head

Sheep and Goat Facility 15,000 head of sheep, goats, or any

combination of the two Any livestock category not listed above 30,000 head

Rule 4570, as adopted in 2006, requires owner/ operators of large CAFs to select from a set of mitigation measures fo r each animal species. Additionally, the rule tailors the menus to the specific operation within the facility. Thus, the rule is protective of the animal health, food safety, and bio-security while providing needed emission reductionsSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

4 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 that would move the San Joaquin Valley air basin closer to attainment of the ozone standard. Dairies, for example, have mitigation measures that cover

• Feed and feed storage;

• Milking parlor;

• Animal housing;

• Animal waste handling; and

• Land application of animal waste.

Rule 4570 also establishes mitigation requi rements for beef feed lots, other cattle operations, swine, and poultry operations, wit h each type of farm having its own menu of options. The mitigation measures them selves are based on the scientific evidence

available at the time of the rule’s dev elopment. While researchers have studied livestock operations over the decades, air emissions associated with livestock agriculture are complex in nature, and the understanding of emissions is growing. District staff combed through thousands of pages of research and interviewed researchers and CAF operators to find options that would reduce VOC emissions and be feasible to implement. As noted earlier in this report, there considerable differences between CAFs, even those that produce the same end products. Thus, a mitigation

measure that is feasible and cost-effectiv e for one operator may be totally unworkable for another. Compliance with the rule require ments was one year from the date that a permit was issued to the facility. The det ails of the rule requirements and other background information are contained in the 2006 Final Staff Report which is attached as Appendix C of this staff report.

III. LEGAL CHALLENGES, DECI SIONS, AND COURT ORDER

In July 2006, the Association of Irritated Residents (AIR) filed a petition for writ of mandate in the Superior Court of California challenging the lega lity of District Rule 4570. Specifically, the complaint alle ged that the District: (1) fail ed to perform a health effects analysis before adopting Rule 4570; (2) fail ed to adopt a rule that reduces all air contaminants; (3) failed to regulate ammoni a; (4) failed to reduce volatile organic compound (VOC) emissions; (5) failed to m eet Best Available Retrofit Control Technology (BARCT) requirements for VO C emissions; and (6) claimed emission reductions that are arbitrary and capricious and entirely lacking in evidentiary support. The trial court denied the petition on a ll counts in August 2007 and AIR appealed the

decision.

In November 2008, the Fifth Appellate Distri ct Court upheld the trial court’s decision on all issues except for one relating to the Dis trict’s health impact assessment. On that issue, the court found the staff report insuffici ent in assessing the rule’s impact on public health. Consequently, the trial court issued a final order directing the District to set aside its adoption of Rule 4570, “pending its assessment of the rule on public health in the valley.”SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

5 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 The issues raised by AIR and the judgments rendered by the trial and appellate courts

are summarized below:

Failure to perform a h ealth effects analysis: The trial court determined that the “District amply assessed public health concerns in adopting Rule 4570.” In fact, the court pointed AIR’s own brief which cited num erous discussions of the health effects of various air pollutants in the administrative record. The court

found these references to the health e ffects discussions in the record to contradict AIR’s claims. The appellate court, however, found that the District staff report was insufficient in assessing the rule’s impact on public health. The appellate court found that it was insu fficient to only have a general discussion of the adverse health impacts of ozone and it was not enough to say that VOC emissions from large confined animal fa cilities add to poor air quality, which in turn impacts public health. The court not ed that the statute requires that “[t]he nature and quantity of emissi ons from the category, and the significance of those emissions in adversely affecti ng public health and the environment,” be assessed in connection with “the impact of the rule or regulat ion.” The court found that, in relation to the estimated VOC reductions of 7,563 tons per year from Rule 4570, the District “makes no statement about how this will impact public health concerns.”

The District has been ordered to “set as ide its adoption of Rule 4570, pending its assessment of the rule on public hea lth in the Valley.” The assessment must also provide “insight into how it balances public health concerns against other interests during the rule-making proc ess.” The court “does not direct the

District to exercise its lawful discretion in any particular way.”

Air contaminants besides ozone: AIR alleged that the District’s decision to address only VOC emissions in Rule 4570 vi olates the statutor y requirements. The District’s position was that the stat ute applied to areas that were nonattainment for ozone and that only ozone pr ecursors were to be regulated. Both the trial and appellate courts ruled in favor of the District on this issue citing the legislative intent and the explicit language in the statute.

It should be noted that, although Rule 4570 only regulates VOC emissions, the mitigation measures that are required under this rule will also reduce 100 tons per day of ammonia and approximatel y 200 tons per day of methane.

Regulating ammonia: AIR alleged that Rule 4570 violated the state law because it did not regulate ammonia emi ssions. Both the trial and appellate

courts ruled in favor of the District on th is issue citing the legislative intent and the explicit language in the statute.

The trial court also noted that ammonia was a precursor to particulate matter

and referenced scientific studies relied upon by the air distri ct that indicated thatSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

6 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 controlling ammonia emissions for reducing ambient particulate concentrations

were unwarranted.

Emission reduction assumptions: AIR alleged that the District’s estimates for emission reductions were arbitrary and capricious and did not represent real

reductions in emissions. Both the trial and appellate courts ruled in favor of the

District on this issue. In fact the court found that the District’s emission estimates were conservative stating t hat “[i]t was not ov erly optimistic, assigning conservative number s to estimated reductions.”

Double counting emission reductions: AIR alleged that the District double

counted reductions associated with f eeding animals according to National Research Council guidelines. Both the tr ial and appellate courts ruled in favor

of the District on this issue. The court cited various studies that were relied upon by the District and found that the Dis trict’s 10% reduction estimate may have been conservative given that another study suggested a reduction of 63 percent reduction in emissions.

Liquid manure mitigation measures: AIR alleged that District improperly assigned a 50 percent control efficiency fo r each of the liquid manure mitigation measures. Both the trial and appellate c ourts ruled in favor of the District on this issue. The court found that although control efficiencies as high as 80-90% were possible, the District’s conservati ve assumption of 50 percent control was not arbitrary.

Application of manure to cropland: AIR alleged that the District’s assignment of a 50 percent reduction in emissions to this measure lacked evidentiary support. Both the trial and appe llate courts ruled in favor of the District on this issue. The court cited studies that showed reductions as high as 90% were possible with proper management.

Failure to assess more expensive mitigation measures: In estimating the overall effectiveness of Rule 4570, t he District assumed that the facility operators would choose the least costly mitigation options available to them. AIR alleged that this practice was arbitrary and failed to quantify reductions from the more expensive controls. Both the trial and appellate courts ruled in

favor of the District on this issue. The court ruled that “this is a conservative approach, not an ar bitrary one.”

Best Available Retrofit Contro l Technology (BARCT) requirements: AIR alleged that Rule 4570 failed to sati sfy BARCT requirements as mandated by

the statute. The court f ound that the District satisfied the BARCT requirements

even under the District’s conservative assumption that the facility operators would choose the least expensive measur e from the menu of options available

to them.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

7 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 To comply with the trial court’s decision, y our Board set aside t he 2006 rule adoption at its May 21, 2009 meeting. T he Governing Board also scheduled a hearing on June 18, 2009 to consider whether to re-adopt the rule or to direct District staff to modify the rule. The staff report, the proposed rule, and the health analysis have been published at least 30 days prior to the June meeting to allo w public review. During the June public hearing, the Governing Board will receive public comments and st aff recommendations

about what should be done with Rule 4570.

V. SB 700 MANDATES

SB 700, as codified in the California Heal th and Safety Code, requires that the Governing Board assess the impact of the rule and make a good faith effort to minimize any adverse impacts. SB 700 goes on to enumerate the different aspects to be considered. The following paragraphs outline the required assessment factors.

This staff report and appendices provide det ailed information from the 2006 adoption of Rule 4570 plus updated information on pub lic health impacts and benefits, and greenhouse gas emissions. The following secti ons provide a synopsis of the critical information relevant to the required impact assessment.

(1) The category of sources affected, including, but not limited to, the approximate number of affected sources, and the size of those sources: The San Joaquin Valley is home to approximately 7,000 confined animal facilities. Although most of the Valley’s CAFs are not consider ed “large” according to the Air Resources Board definition of “large confined animal fac ility,” 72% of the Valle y’s confined animals are housed at facilities subject to Rule 4570. About 558 facilit ies are currently subject to the control requirements of Rule 4570.

CAFs are used in the raising of livestock fo r the purpose of providing dairy products, meat, and eggs. The size of all types of liv estock agriculture farms has increased since the 1990s. A big driver in the change is in creased productivity and, through that, lower production costs to the farmer. These lower production costs are passed on to the consumer as lower prices for meat, dairy products, and eggs. One example of the shift to large-scale production is the dairy industr y. Nationally, only about 10% of all dairy cows were housed on farms with more than 1, 000 head in 1992. By 2007, that ratio rose to 36% of all dairy cows . The shift to very-large dairi es (1,000+ head) had its origin

in California and other western states. Looki ng at California specifically, the state has become the largest producer of milk in the nation. T he eight counties of the San Joaquin Valley are all in the t op-ten California counties for m ilk production, with Tulare County heading the list. Tulare County alon e produced almost as much milk as the entire state of Pennsylvania; the state ranked number five on the 2007 list of top milkproducing states and Tulare County was well ahead of Minnesota, the sixth largest milk producing state.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

8 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 Figure 1 shows the recent trends in the Valley’s growth in dairy cow population and a 6% decline in the number of facilities. In Figure 1, “Dairy Cows” includes only mature cows, but not calves and heifers.

Figure 1 - San Joaquin Valley Dairy Population Trends

Dairies Cows

1,300 1,400 1,500 1,600

2005 2006 2007 2008Dairies

1,300,000 1,400,000 1,500,000 1,600,000 1,700,000Dairy Cows

Rule 4570 affects all large CAFs, as defi ned by the Air Resources Board. Table 1

shows the minimum number of animals for a facility to be considered a large CAF.

Table 1 - Rule 4570 Applicability

Livestock Category Rule 4570 Applicability Facilities Subject

to Rule 4570* Animals Subject to

Rule 4570** Dairy 1,000 milking cows 478 2,064,782***

Beef Feedlot 3,500 beef cattle 12 174,848

Other Cattle 7,500 head 0 0

Chicken 650,000 head 32 36,805,089

Duck 650,000 head 0 0 Turkey 100,000 head 35 4,728,720

Swine 3,000 head 1 90,000

Horses 3,000 head 0 0 Sheep and/or Goats 15,000 head 0 0

Other livestock 30,000 head 0 0

* Current data ** 2006 data, except for “other cattle.” The original staff report anticipated that several “other cattle” facilities would be subject to Rule 4570, but re cent data reveals none are actually subject. *** Dairy animals includes cows, calves, and heifers.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

9 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 (2) The nature and quantity of emissions from the category, and the significance of those emissions in adversely affecti ng public health and the environment and in causing or contributing to the violation of a state or federal ambient air quality

standard:

Nature and quantity of emissions from the category: Confined animal facilities generate emissions of volatile organic compounds, amm onia, and methane. As confirmed by the court decisions discussed above, the focus of Rule 4570 is appropriately on VOC as a precursor to ground-level ozone. Accordi ng to the emission inventory used in the District’s 2007 Ozone Plan, the VOC emissions inventory for CAFs in 2005 was 57.6 tons per day, and the total VOC inventory fo r 2005 was 398.6 tons per day. Thus, in 2005, CAFs accounted for 14% of the tota l anthropogenic VOC emission inventory for the San Joaquin Valley. Given the consider able fraction of VOCs in the region that originate from confined animal facilities, Rule 4570 was originally included as part of the District’s strategy to attain the federal health-based standard for one-hour ozone in the
District’s 2004 Extreme Ozone Attain ment Demonstration Plan.

Due to the relatively new status of CAFs as regulated air emission sources, the body of scientific knowledge on CAF emissions is not as well established as other traditional stationary sources historically under the ju risdiction of the District. New scientific findings characterizing and quantifying dairy , poultry, and other animal emissions and possible control measures are currently being developed and completed. The District developed Rule 4570 using relevant findings fr om previous research efforts as they were finalized, published, and peer-reviewed. These include, but were not limited to:

• A study at UC Davis, led by Dr. Fr ank Mitloehner, which focused on emissions

from cows housed in environmental chambers to evaluate the emissions produced directly from cows and their fresh manure.

• A study at two operating dairies in t he San Joaquin Valley, led by Dr. Chuck Schmidt, in which measurements were made at various locations at the dairies, including the corrals and turnouts, bedding areas, lagoons, feed storage areas, flush lanes, and bunker feed.

• A study by Dr. Schmidt to validate t he effectiveness and capture efficiency of using flux chambers that were used to quantify emissions in the dairy studies.

The significance of those emissions in adversely affecting public health and the environment and in causing or c ontributing to the violation of a state or federal ambient air quality standard: District staff has conducted a se ries of empirical exercises intended to estimate the public health impacts of CAF emissions and the health benefits

of Rule 4570. The computer modeling used in the District’s 2004 Extreme Ozone

Attainment Demonstration Plan showed t hat VOC and oxides of nitrogen (NOx) emission reductions were essentially equival ent in affecting 1-hour ozone levels. In contrast, the computer modeling used fo r the District’s 2007 Ozone Plan demonstrated

that reductions in VOC emissions are relative ly weak in affecting 8-hour ozone levels compared to the same amount of NOx reductions. Given the challenges facing the District in attaining the 8-hour ozone standard, even the minor contribution of VOCSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

10 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 emissions is crucial, since stationary NOx sources within the Distric t’s regulatory control are only about 20% of total NOx emission inventory (mobile sources make up the other 80%), and NOx stationar y sources are already well-controlled through current rules and regulations. By comparison, VOC sources within the control of the District are 55% of the total VOC emission inventory. Since agric ultural sources were specifically exempt under state law prior to 2004, agricultural sources have not had the same level of emission control as other VOC sources and, t herefore, an appropria te target category for control implementation. As noted above, CAFs are about 14% of the District’s total anthropogenic VOC emissi on inventory.

Using the ozone modeling that was conduct ed as part of the 2007 Ozone Plan, District

staff has estimated the contribution of CAF sector VOC to ozone concentrations at San Joaquin Valley air monitoring sites. As deta iled in Appendix A of this staff report, the
absolute contribution of CAF VOC emissi ons to ozone design values ranged across monitors from 1.3 to 2.8 parts per billion, which equates to 1.6% to 2.8% of the total ozone concentration in the ground-level atmos phere. Given the complex regional and photochemical nature of ozone, these percentages of the total ozone concentration are
considered to be reasonable estimates for CAF VOC contributions to the violations of

state and federal ozone standards.

Considerable research over the past 35 years has investigated the responses of

humans to ozone inhalation. This research has consistently shown that exposure to elevated ozone leads to inflammation and irritation of airway tissue. Elevated ozone has been shown to reduce lung function and in flame lung epithelial lining. Symptoms and responses to ozone exposure vary widely among individuals. Typical symptoms include cough, chest tightness or pain, shortness of brea th, pain when taking a deep breath, coughing, throat irritation, conges tion, and increased asthma symptoms. In persons with asthma, ozone can worsen asthma symptoms. Ozone in sufficient doses can also increase the permeability (“leaki ness”) of lung cells, making them more susceptible to environmental toxins and infe ction caused by microorganisms such as

viruses and bacteria.

In epidemiological studies, ozone exposur e has been associated with an increase in hospital admissions and emergency room visits , particularly for caus es related to the lungs, such as asthma and chronic obstructi ve pulmonary disease (COPD). Elevated ozone exposure has also been shown to be positively associated with premature death from respiratory disease in a recent study of 448,850 subjects in 96 U.S. cities. Equally significant, a study of over 6,000 California births found that elevated ozone exposure during pregnancy was correlated with reduced fetal growth among term infants.

In terms of analysis tied directly to the San Joaquin Valley, Dr. Jane V. Hall and Dr. Victor Brajer from Californi a State University, Fullerton evaluated the impact of ozone standard exceedences using a number of adverse health effects and their associated

costs. The results of that anal ysis are summarized in Table 3.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

11 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 Table 3 - Estimated Annual Ozone Impacts from the Hall Study 

### *

Number of

Incidences Valuation
Respiratory Hospital Admissions 163 $6,180,000
Asthma Attacks Asthmatic Population 20,400 $1,081,000
Emergency Room Visits 60 $21,330
Days of School Absences 151,510 $12,020,000
Minor Restricted Activity Days 153,750 $9,940,000
Mortality 9 $59,640,000

Total Cost of Ozone-Relat ed Exposure $88,882,330
“The Benefits of Meeting Federal Clean Air Standards in the South Coast and San Joaquin Valley Air Basins” Jane V. Hall, Ph.D. and Victor Brajer, Ph.D ., California State University, Fullerton, November

2008.

As discussed above, it is reasonable to conc lude that 1.6% to 2. 8% of the adverse health impacts associated with ozone concentrat ions in the Valley can be attributed to
VOC emissions from CAFs.

Although the CH&SC Section 40724.6 (e)(2 ) requires assessment of the nature and quantity of emissions from CA Fs in adversely impacting public health and attainment of an air quality standard, the Court of Appeals interpreted this section to also require a public health assessment of the emission redu ctions from Rule 457 0, therefore, the following paragraphs outline the public health benefit associated with Rule 4570. The report, in its entirety, is attac hed to this report as Appendix A.

To the extent that scientific data are available and in accordance with accepted principles of scientific inference, Distric t staff has studied the relationship between CAFs, VOCs, ozone concentration, and health effects using computer modeling

software from EPA known as BenMAP. The st udy process required five stages. First,
the control of VOC emissions from large CAFs was placed into the scientific context of ozone photochemistry in the S an Joaquin Valley and the instit utional context of the Clean Air Act. Second, an assessment wa s made of the natur e and quantity of VOC

emissions from the CAF sector and their relative contribution to ozone concentrations in the region. Third, the heal th benefit analysis evaluated the effectiveness of Rule 4570 in reducing ozone concentrations relative to other ozone control measures undertaken by the District in the 2007 Ozone Plan. Four th, the study quantified the health benefits
from the 2007 Ozone Plan in 2020 in order to underscore the overall health benefits of controlling VOC emissions in the region as we ll as the proportional c ontribution of Rule

4570 to those health benefits.

In order to assess Rule 4570’s co ntribution to public health, t he final stage of this health assessment process involved a quantificati on of the overall hea lth benefits resulting from the 2007 Ozone Plan implem entation in the year 2020 (based on CARB’s 2020 ozone modeling). While it is not possible to use the EPA’s BenMAP program to quantify

health benefits from individual ozone control m easures such as Rule 4570, the programSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

12 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 was used to estimate the number of avoi ded cases of ozone-related diseases and premature death that would result from the cumula tive control measures contained
within the 2007 Ozone Plan.

The health endpoints chosen for the health benefit analysis were:

1. Mortality (premature death) : Premature death is def ined in epidemiological

studies as someone who dies from an air pollutant-related cause prior to their expected age of death, based on actuarial research. Typically this period falls between 10 and 15 years before normal life expectancy.

2. Respiratory Emergency Room Visits : Elevated ozone often triggers a strong pulmonary response in individuals with pre-existing pulmonary conditions, such

as those with asthma or chronic bronchi tis. Numerous studies have analyzed this impact, and concentration response functions have been developed for emergency room visits related to individual pulmonary conditions as well as visits for combined respiratory distress.

3. Respiratory Hospital Admissions : This endpoint category and the related epidemiological studies are closely related to the ER Visits category, except that the extent of ozone-triggered health trauma is more severe, resulting in hospital

admission.

4. School Loss Days : As a region, the San Joaquin Valley has a very high rate of childhood asthma. Days of elevated oz one have been shown by a number of studies to result in a statistically elevated and proportional rate of school

absences.

5. Acute Respiratory Symptoms : Individuals with pulmonary vulnerability such as asthmatics often experience respiratory impairment that does not result in

medical treatment or lost work but ar e nonetheless real and detrimental to the
individual. Studies have shown that the frequency of these symptoms, including wheezing, coughing, and shortness of breath, is relatively high.

6. Reduced Worker Productivity : While ambient ozone c oncentrations are often

much lower within indoor work environm ents, especially those that are air conditioned, outdoor workers engaged in str enuous activity are vulnerable to its

effects. Research has demonstrated t hat there are mode st but measurable impacts of elevated ozone on worker productivity. It should be noted that the San Joaquin Valley, because of its ext ensive acreage devoted to labor-intensive crops, has one of the highest concentrati ons of outdoor labor in the United
States.

The results of the BenMAP incide nce analysis are presented in Table 6. As a result of

the total control measures contained within the District’s 2007 Ozone Plan, these figures represent the number of avoided cases of pr emature death or health trauma that would apply to the San Joaquin Valley populations in the year 2020. Year 2020 was selected

as the terminus of health benef its from the Plan because VOC controls from measures such as Rule 4570 no longer result in ozone decreases beyond that year. This analysis shows greater health benefits compared to th e Hall study, due to choice of health endpoints and that the 2007 Ozone Plan will move some areas beyond attainment,SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

13 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 meaning ozone levels below the ozone standard. The Hall study evaluated the health endpoints based on each area of the Valley just at the standard. In conclusion, the BenMAP analysis demonstrated that the reductions in ozone precursor emissions resulting from Rule 4570 make a critical contribution to the overall health benefits of
control measures in the 2007 Ozone Plan.

Table 6 - Avoided Cases of Prematur e Death and Health Trauma in 2020

Health Endpoint Number of

incidences Valuation (2020 dollars)
Mortality 21 $179,938,502
Respiratory Emergency Room Visits 78 $27,437

Respiratory Hospital Admissions 286 $6,085,451
School Loss Days 79,532 $8,079,926
Acute Respiratory Symptoms 91,402 $6,235,594

Worker Productivity 11,828,748 $16,034,971

Total Cost Benefit from Reduced Ozone Exposure $216,401,880

Rule 4570 as adopted in 2006 and now proposed for re-adoption, makes a noticeable contribution to the long-term ozone attainm ent goals for the region. Ozone reductions

attributable to Rule 4570 were estimated to range from 0.5 ppb to 1.1 ppb, depending

on the monitor location. In respect to the relative (percentage) contribution of these

reductions to attainment of the 1997 ozone health standard (84 ppb), this estimate ranged from 3.9% (Arvin) to 34. 5% (Madera). Approximately two-thirds of these ozone

reductions in 2012 are attributable to Rule 4570 adopted in 2006, with the remaining benefits coming from the Rule 4570 amendments planned for a doption in 2010. Please refer to Figure 6 in Appendix A of this r eport for additional deta ils. These modeling results underscore the relative importance of Rule 4570 among local control measures adopted for stationary sources in reducing ozone concentrations in the Valley.

(3) The emission reduction potential: When adopted in 2006, Di strict staff estimated that Rule 4570 would achieve approximately 9 tons per day of VOC reductions by 2009, 20 tons per day by 2012, and 24 tons per day by 2020. These values represent a significant portion of the District’s overall VOC control strategy. In addition, a secondgeneration large CAF contro l measure, Rule 4570 v2, is scheduled to reduce an additional 6.7 tons per day by 2012 and 21. 5 tons per day by 2020. These two iterations of Rule 4570 (v1 and v2) compri se 63% of the VOC r eductions that were

included in the District’s 8-hour ozone attainm ent strategy. The large CAF reductions

make a critical contribution to the total VOC reductions. These VOC reductions are an essential component of the overall District ozone control strategy for the San Joaquin Valley.

(4) The impact on employment in , and the economy of, the region: The following
discussion is taken from the Socioeconomic Impact Analysis prepared by Applied Development Economics, Inc. for the 2006 adoption of Rule 4570. The entireSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

14 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 socioeconomic impact report is included in A ppendix C (pages C-105 through C-148) of this staff report.

In 2004, there were approximately 1,500 dairy facilities operating in the eight-county region, and these facilities employed an es timated 16,800 workers. These facilities recorded $4.3 billion in value, from which $266 million in net profits wa s generated. It is important to note that the economic activity track ed involved milk production, not purchase or sale of dairy cows.

The cattle industry in the region is not as large as dairy, employing fewer workers and generating less revenues and net profit. The beef and cattle industry was tracked using transactions involving the sale of cattle in general and beef cattle in particular. The

District’s economic consultant estimates t hat there were approxim ately 10,474 workers employed in beef cattle and other cattle operations in the region. Projecting to 2004 based on California EDD growth patterns between 2002 and 2004, there were 5,290 cattle facilities in the region, which includ es both range-fed (not confined) and feedlot operations.

There were approximately 313 swine farms operating in the region and 1,485 in the state as a whole in 2004, s uggesting that swine farm operations occur largely outside of the eight-county region. Poul try operations were not in cluded in the socioeconomic impact analysis because, for the most part, the required mi tigation measures are in place, so no costs were associated with im plementing the rule at poultry large CAFs.

Businesses impacted by a proposed rule may respond in a variety of ways when faced with new regulatory costs. These responses may range from simply absorbing the costs and accepting a lower rate of return, to shutti ng down the affected business operation altogether and, where practical, shift from lower-value to higher-value product and or crop. Affected sources may also seek to renew efforts to increase productivity and reduce costs elsewhere in their operation in order to recoup the regulatory costs and maintain profit levels. It is important to note that agriculture in general, and livestock products in particular, are “price takers”, m eaning that they have little ability to set price of their goods, and little ability to pass on cost s to the consumer. As prices of basic goods like beef increase, consumers may switch to other products, su ch as poultry. Alternatively, consumers might continue to buy beef, but they may switch to products from other regions or states that c ould be less expensive.

The socioeconomic impact analysis of Pr oposed Rule 4570 done in 2006 showed that the total annual compliance cost s represents less than 1% of the net profit s for large CAF swine stakeholders; 9.6% of the net profits of large CAF dairy stakeholders; 13.0% percent of the net profits of large cattle stakeholders (beef feedlot s); and 13.5% of the net profits of other la rge CAF cattle stakeholders. Based on a threshold of significance of 10%, only large beef feedlot CAFs and large “other cattle” CAFs would be significantly affected by the proposed rule . It was expected that dairies and swine operations could absorb the additional compli ance costs through operational efficienciesSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

15 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 because the compliance costs are less than 10% of the estimated net profit for these facility types.

Because of the way in which one busine ss in one industry interacts through buyer and supplier relations with businesses in the same or other industries, there are also indirect and what are called induced impacts associ ated with the proposed rule. Using the IMPLAN Impro Professional i nput-output model, the District’ s socioeconomic consultant estimated the multiplier impacts associ ated with the cost of compliance above the threshold of significance, looking particularly at two measures – employment and industry output. Employment i ndicates the number of jobs lost given the level of compliance cost. This employment total includes self-employment. Industry output represents the sum of all econ omic activity lost by affected industries and ancillary activities. This activity includes all commo dity inputs, labor inco me, property income,

and other value added components.

The multiplier impacts for these measures co me from the Type II mu ltipliers. These multipliers include the direct, i ndirect, and induced impacts.

• Direct impacts represent the jobs lo sses and other economic impacts that are directly related to costs associated by affected industries as a result of implementation of the proposed rule.

• Indirect impacts represent the jobs and ot her economic effects that will potentially be lost elsewhere in the eight-count y region as a result of the direct impacts on affected industries resulting from the draft rule. These indirect impacts result from supplier purchases. Induced impacts represent the economic losses associated with reductions in household purchases tied to direct and indirect employment losses in the region. These induced impacts most typically occur in re tail and other local-serving industry categories such as personal services, education, and health care.

Table 4 shows the direct, indirect, and induc ed employment impacts and industry output impacts associated with annual cost of comp liance resulting from Proposed Rule 4570. As noted above, the industry output is the dolla rs in excess of 10% of the estimated net profit. In addition to the di rect loss of 17 workers in the non-dairy cattle industry, there

was estimated to be an indirect loss of 17 additional workers in businesses with whom affected non-dairy cattle producers engage in buy er-supplier relations. The direct loss of 17 and the indirect loss of another 17 workers, in turn, would induce the loss of another 6.4 workers, mainly t hose who are employed in retail and services. Thus, the total number of jobs lost as a result of the costs associated with Proposed Rule 4570 amounts to 40.4 workers, or less than 0.1% of the number of people employed by the non-dairy cattle industry in the region.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

16 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 Table 4 - Socioeconomic Impact Analysis of Rule 4570

Impact type Direct Impacts Indirect Impacts Induced Impacts Total Impacts Industry Output -- below sig. -- -- below sig. -- -- below sig. -- -- below sig. -- Dairy Employment -- below sig. -- -- below sig. -- -- below sig. -- -- below sig. -- Industry Output $1,975,300 $1,806,328 $415,641 $4,197,269 Cattle Employment 17 17 6.4 40.4 Industry Output $134,985 $123,438 $28,403 $286,827 Beef Employment 1 1 0.4 2.4

Ind ustry Output $1,840,315 $1,682,890 $387,238 $3,910,442 Other Cattle Employment 16 16 5 38 Industry Output -- below sig. -- -- below si g. -- -- below sig. -- -- below sig. -- Swine Employment -- below sig. -- -- below sig. -- -- below sig. -- -- below sig. -- Industry Output NA NA NA NA Poultry Employment NA NA NA NA Source: Applied Development Economics, based on San Joaquin Valley Unified Air Pollution Control District and Industry

The Table 4 data was taken from the 2006 staff r eport for the original rule adoption. At that time, dairy farmers were realizing incr eased revenue due to higher milk prices. In 2008, the price received by dairy farmers for m ilk was significantly lower, and the nation and the region’s economy is experiencing majo r downturn. Theref ore, the economic and employment impact of Rule 4570 on da iry operators may be higher than the 2006 estimates. By comparison, the category “oth er cattle” was expected to be significantly impacted by the rule implementation. Table 1, however, shows that there are no “other cattle” facilities that are currently subj ect to the rule, and, therefore, there no socioeconomic impacts occurred for this type of CAF.

(5) The range of probable costs to affected sources and businesses: District staff used available cost information contained in technical reports, provided by control equipment vendors, and received from stak eholders, to conduct a cost effectiveness analysis of the proposed requi rements of Rule 4570 in 2006. For the purpose of calculating the compliance cost and associated cost-effectiv eness of the proposed rule, staff took into consideration those mitigat ion measures already being implemented at

facilities and assumed that ow ners/operators will likely choose the lowest cost mitigation

measures. This was done to minimize over estimation of compliance costs. Staff refined the analysis based on further informati on provided by the California Department of Food and Agriculture, i ndustry representatives, and vendors. The total annual compliance costs are summarized in Table 5.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

17 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 Table 5 - Compliance Costs for CAFs that Implement Mitigation Measures

Type of CAF Total Annual Compliance Costs Dairy $18,324,074

Beef Feedlots $590,112

Other Cattle Facilities $7,147,266

Swine $540

TOTAL $26,061,922

Based on the annual costs and emission reduct ions associated with each sector of industry, the estimated cost effectiveness is as follows:

• Dairies = $4,815 or less per ton of VOC reduced,

• Beef feedlots = $4,505 or less per ton of VOC reduced

• Other cattle facilities= $10,088 or less per ton of VOC reduced, and

• Swine = $3 or less per ton of VOC reduced.

A cost effective analysis was not done for poultry because, based on comments from industry and information in the District’s permi t database, staff determi ned that existing poultry facilities were already required to implement best available retrofit control technology. Therefore, the added cost woul d only be recordkeeping costs, which are

considered minimal. A det ailed discussion of the analysis is shown pages C-95 through C-104 of this report.

The category “other cattle” was expected to be significantly impacted by the rule implementation when District st aff calculated compliance costs in 2006. As shown in Table 5, about $7.1 million per year of compli ance costs were allocated to “other cattle” facilities. Table 1, however, shows that there are no “other cattle” facilities that are currently subject to the rule, and, therefore, operator s of “other cattle” facilities incurred no actual compliance cost as a result of Rule 4570.

(6) The availability and cost ef fectiveness of alternatives: Because of the magnitude of CAF emissions and significance of the potent ial reductions, alternatives to the CAF rule itself, such as deferring the CAF rule in favor of VOC emission reductions from another source category, are not possible in the context of the District’s ozone attainment strategy and SB 700. During t he development of Rule 4570, District staff considered the availability and cost effectiv eness of numerous alternatives as control requirements in the rule, including st ringency of each mitigation measure and the number of mitigation measures needed for each source category. The considerations and deliberations were conducted in an open public process, which ultimately produced Proposed Rule 4570 in June 2006. These al ternatives were documented in several published drafts of the rule and staff report, and in respon ses to public comments.
These documents were submitted for Govern ing Board deliberatio ns in 2006, and are attached again as part of this report. Distr ict staff also presented information that demonstrated that the proposed su ite of controls would reduce VOC emissions by the amount specified in the 2004 Extreme Ozone Attainment Demonstration Plan.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

18 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 (7) The technical and practical feasibility: In assessing the technical and practical feasibility of Rule 4570, the f ugitive nature of the emissions from certain CAF categories is an important underlying factor. Fugitive emissions are defined as “those emissions which could not reasonably pass through a stack, chimney, vent, or other functionallyequivalent opening.” In general, fugitive emissions (e.g., particulate matter from the disturbance of dust, VOC from coatings and solvents) are traditionally – and almost exclusively - controlled by techniques to prevent emissions, rather than removing contaminants that are already entrained.

Because of the large amount of land requi red to sustain the raising of animals, agricultural facilities, by their nature, tend to be very expansive. Agricultural production areas can span over a hundred acres with ai r contaminants primarily produced as fugitive emissions from multiple sources and operations at the fa cility. Examples of fugitive emission sources at CAFs in clude enteric emissions from livestock and

emissions from animal waste that is applied to land.

The majority of emissions at traditional stationary sources are collected and released through a chimney, pipe, vent, or stack, whic h allows the use of traditional emission controls like fabric filters, catalysts, scrubbers, carbon absor bers, and regenerative thermal oxidizers. Emissions from agricul tural sources are spread out over wide areas and are very dilute at the point of release. It would be exceedingly costly and energy intensive to design and construct a system capable of capturing the emissions from certain CAF categories, and then controlling them. However, ev en if it were possible to capture most of the fugitive emissions, the extremely di lute nature of the compounds emitted from animals at agricultural sources w ould still cause the use of traditional point source controls to be infeasible and exceedingly expensive. Because of these feasibility constraints, Ru le 4570 relies on management practices to prevent emissions

from confined animal facilities. Alter natives to management practices are not reasonably available or feasible for CAF fugitive emissions.

In contrast to most source categories withi n a CAF, certain operations would appear to

be candidates for traditional emission cont rol techniques, since these operations produce non-fugitive VOC emi ssions. One example is poultr y houses, which are used to enclose a large number of birds and have c limate controls to ensure that the birds’ health is protected. Since a poultry house is a building with limit ed outlets, it is theoretically feasible to add some sort of control device on the ventilation outlet to control VOC emissions. However, engineeri ng analysis of these bu ildings shows that

the air flow rate needed to control the interior environment is high and the VOC concentration is very low, meaning that the co st to control emission s from the building is high compared to the relati vely low amount of emissi ons reduced. Consequently, control of these emissions using traditiona l VOC control devices has been considered

not cost effective.

A dairy waste (anaerobic) diges ter or treatment lagoon is a nother non-fugitive source category that would seem to be set up for VOC emission control. One might assumeSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

19 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 that power generation from the methane produced by t he digester/lagoon should reduce any capital equipment or operati ng costs of the digester/lagoon controls. The reality is that economic feasibility is highly variable, and depends on project location and the local utility company. The physical connection between onsite electrical generators and the local power grid alone can cost $90,000 bef ore taking into account the capture and control equipment for the digester/lagoon itse lf. Lastly, even using the VOCs on-site can have negative air quality impacts . One of the main uses of collected VOCs is to run internal combustion engines for pumping wate r needed at the dairy. In some recent cases, engines running on digester gas hav e not been able to meet the District’s stringent NOx standards.

Another concern is that, unlike traditional stat ionary sources, potential adverse affects to livestock must also be considered when changes in production methods are undertaken. Emission control measures that would be applied to animals must take into account the health, welfare and productivity of the animals, food safety, and biosecurity. Animal deaths, expenses for treatm ent or disposal of dead animals, as well as loss of productivity due to poor animal healt h can all be devastating to a farmer. Government agencies such as the United Stat es Department of Agriculture (USDA) are also deeply involved in animal health and the re lated food safety and bio-security issues that affect not just indivi dual farmers but also the entir e farm industry and the public. Diseases such as hoof-and-mouth disease, mad cow disease (bovine spongiform encephalopathy, or BSE), and avian flu are a ll of grave concern to the government because of their ability to destroy the ent ire farm industry and/or cause enormous loss

of human life.

On top of animal health, food safety and bi o-security concerns, animal welfare has become a significant public issue, as demonstrated by the recent passage of Proposition 2 which prohibits the confinement of certain farm animals in a manner that does not allow them to turn around freely, lie down, stand up, and fully extend their limbs. While in the past, product boycotts and bad publicity were the main threats linked to animal welfare issues, the passage of laws such as Proposition 2 brings the additional possibility of lit igation that can put farmers out of business.

It is therefore critical for fa rmers to have the flexibility to decide the kind of mitigation measures that will work best for their specific operation by taking into consideration animal health and welfare, producti vity, food safety and overall bio-security issues, while at the same time achieving the required leve l of emission control. For instance, some dairy farmers have pointed out that high moistu re levels in animal pens increase cases

of mastitis infections in thei r herds. In such cases, it w ould be unfair to compel farmers to implement mitigation measures that incr ease moisture levels in their animal pens because of the potential harm to animal hea lth, cost of trea tment and loss of productivity. Instead, an opti on to implement another mitigat ion measure that achieves

the same level of emission control should be provided. On the other hand, if certain mitigation measures such as housing dairy co ws in completely enclosed barns were to be required across the board, many farmers , depending on case-by-case factors suchSAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

20 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 as the size of the operation, location, or financial resources, may find themselves exposed to serious animal welfare issues and devastating litigation.

(8) Additional information on impacts:

Co-benefits of Rule 4570 : In addition to reducing VOC emissions, many of Rule 4570’s mitigation measures also reduce ammonia emi ssions. The District staff used available information to evaluate the potential for ammonia emission reduc tions from those mitigation measures most likely to be us ed by operators. Based on its assessment,

District staff estimated that ammonia em issions would be reduced by about 100 tons per day when Rule 4570 was fully implemented.

The California Global Warming Solutions Ac t of 2006 (AB 32) created a comprehensive, multi-year program to reduc e greenhouse gas (GHG) emissions in California, with the overall goal of restoring emi ssions to 1990 levels by the year 2020. In the coming years, ARB and the Legislature will be develop ing policies and progr ams to implement

AB 32.

GHGs, in particular methane, would be reduced by about 200 tons per day with the implementation of Proposed Rule 4570. Metric tons of carbon dioxide (CO 2 ) equivalents is the standard m easure for GHGs. Methane has about 25 times the global warming potential of CO 2 , meaning that the methane reductions have far more impact

than the emission reduction alone would indica te. Using the global-warming calculator on EPA’s website (www.epa.gov/solar/energy-re sources/calculator.html), 200 tons per day of methane reductions equates to 3,810 metric tons per day of CO 2 equivalents.

VII. EMISSIONS AND EMISSION REDUCTIONS

The 2006 Final Staff Report for Rule 4570 contains the emissions calculations and

estimates of the emission reductions asso ciated with implementi ng Rule 4570 on pages C-71 through C-94 of this staff report.

VIII. COSTS, AND COST EFFECTIVENSS ANALYSIS

Pursuant to CH&SC Section 40920 .6(a), a cost effectiveness analysis is requi red for rules that implement best available re trofit control technology (BARCT ). The purpose of the cost effectiveness analysis is to evaluate the economic reasonablen ess of the rule or rule amendments. The analysis also serves as a guideline for deve loping the control requirements of the rule. The 2006 Final Staff Report for Rule 4570 contains the compliance costs and associated cost effect iveness for implementing Rule 4570 on pages C-95 through C-104 of this staff report.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

21 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 IX. SOCIOECONOMIC IMPACT ANALYSIS

Pursuant to CH&SC 40728.5, the District is r equired to perform a socioeconomic impact analysis prior to the adoption, amendment, or r epeal of a rule that significantly affects air quality or strengthens an emission limitati on. The 2006 Final Staff Report for Rule 4570 contains the socioeconomic impact analysi s for implementing Rule 4570 on pages C-105 through C-142.

X. RULE CONSISTENCY ANALYSIS

Prior to adopting, amending, or repealing a rule or regulation that implements best available retrofit technology (BARCT), California Health and Safety Code Section 40727.2 requires a written analysis that identifies and compar es requirements of the proposed rule with corresponding, existing and proposed District rules and corresponding United States En vironmental Protection Agency (EPA) rules, regulations, and guidelines. The proposed rule has already been in analyzed during its initial adoption. Since District staff recommends that the rule be re -adopted with no change in requirements from th e original adoption, the rule consistency analysis done in 2006 is still applicable. The 2006 rule consistency analysis is contained in p ages C-143 through C148 of this staff report.SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

Final Staff Report: Rule 4570 (Confined Animal Facilities) June 18, 2009

22 Final Staff Report with Appendices For Proposed Re-Adoption of Rule 4570 This page int entionally blank.