ATTACHMENT E 

RESOLUTION NO. 14-17 

A Resolution of the South Coast Air Quality Management District 

(SCAQMD) Governing Board amending Rule 1111 - Reduction of NOx Emissions 

From Natural-Gas-Fired, Fan-Type Central Furnaces,. 

 A Resolution of the SCAQMD Governing Board certifying the Final 

_Envir,onmental_Assessment.for.Proposed_Amended Rule.1111_- Reduction_of_NOx., 

, Emissions From Natural-Gas-Fired, Fan-Type Central Furnaces. 

, WHEREAS, the SCAQMID Governing Board has determined with 

certainty that Proposed Amended Rule 1111 - Reduction of NOx Emissions From 

Natural-Gas-Fired, Fan-Type Central Furnaces, is a"project" pursuant to the California 

Environmental Quality Act (CEQA); and 

WHEREAS, the SCAQMD has had its regulatory program certified 

pursuant to Public Resources Code § 21080.5 and has conducted CEQA review and 

analysis pursuant to such program (SCAQMD Rule 110); and 

WHEREAS, SCAQMD staff has prepared a Draft Environmental 

Assessment (EA) pursuant to its certified

;

regulatory program and pursuant'to CEQA 

Guidelines § 15252, setting forth the potential environmental consequences of Proposed 

Amended Rule 1111 - Reduction of NOx Emissions From Natural-Gas-Fired, Fan-Type 

Central Furnaces; and 

WHEREAS, the Draft EA was circulated for 30-day public review and 

comment period from July 29, 2014 to August 27, 2014; and 

' WHEREAS, WHEREAS, no comment letters were received relative to 

the analysis presented in the Draft EA and the Draft EA has been revised such that it is 

now a Final EA; and 

WH'EREAS, it is necessary that the adequacy of the Final EA, including 

responses to comments, be determined by the SCAQMD Governing Board prior to its 

certification; and 

WHEREAS, the SCAQMD is not required to prepare Findings, a 

Statement of Overriding Considerations, or a Mitigation Monitoring Plan because the 

proposed project is not expected to generate significant adverse environmental impacts; 

and , 
WHEREAS, the SCAQMD Goveming Board voting on Proposed Amended 

Rule 1111 - Reduction of NOx Emissions From Natural-Gas-Fired, Fan-Type Central Fumaces 

has reviewed and conaidered the Final EA prior to its certification; and 

WHEREAS, the SCAQMD Governing Board finds and deterinines, 

taking into consideration the factors in §(d)(4)(D) of.the Governing Board Procedures 

(to be codified as Section 30.5(4)(D) of the Administrative Code), that the modificafions 

which have been made to Proposed Amended Rule 1111 - Reduction of NOx Emissions 

From Natural-Gas-Fired, Fan-Type Central Furnaces, since notice of public hearing was 

published do not significantly change the meaning of the proposed project within the 

—-- meaning_ of Health and Safety Code-§ 40726 and would not constitute significant new 

; 

information requiring recirculation of the Draft CEQA document pursuant to CEQA . 

Guidelines § 15073.5; and 

WHEREAS, California Health and Safety Code § 40727 requires that 

prior to adopting, amending or repealing a rule or regulation, the SCAQIvID Governing 

Board shall make findings of necessity, authority, clarity, consistency, non-duplication, 

and reference based on relevant information presented at the public hearing and in the 

staff report; and 

' WHEREAS, the SCAQMD Governing Board obtains its .authority to 

adopt, amend, or repeal rules and regulations from §§ 39002, 40000, 40001, 40440, 

40441, 40702, 40725 through 40728, 41508, and 41700 of the Califomia Health and 

Safety Code; and 

WHEREAS, the SCAQMD Governing Board has determined that there is 

a problem that Proposed Amended Rule 1111 - Reduction of NOx Emissions From 

Natural-Gas-Fired, Fan-Type Central Furnaces will help alleviate by delaying the NOx 

emission limit compliance date and providing an alternate compliance option; and 

WHEREAS, the SCAQNID Governing Board has determined that a need 

exists to amend Rule 1111 - Reduciion of NOx Emissions From Natural-Gas-Fired, 

Fan-Type Central Furnaces to delay the NOx emission limit -compliance dates and 

provide an alternate compliance option; and 

WHEREAS, the SCAQMD G.overning Board has determined that 

Proposed Amended Rule 1111 - Reduction of NOx Emissions From Natural-Gas-Fired, 

Fan-Type Central Furnaces, as proposed is written or displayed so that its meaning can 

be easily understood by the persons directly affected by it; and 

' WHEREAS, the SCAQMD Governing Board has determined that 

Proposed Amended Rule 1111 - Reduction of NOx Emissions From Natural-Gas-Fired, 

2 
Fan-Type Central Furnaces, as proposed is in harmony with, and not in conflict with or 

contradictory to, existingfederal or state statutes, court decisions, or regulations; and 

~ 

WHEREAS, the SCAQMD Governing Board has determined that 

Proposed Amended Rule 1 I 11 - Reduction of NOx Emissions From Natural-Gas-Fired, 

 Fan-Type Central Furnaces, as proposed does not impose the same requirements as any 

existing state or federal regulation and the proposed rule is necessary and proper to 

execute the powers and duties granted to, and imposed upon, the District; and 

WHEREAS; the SCAQMD Governing Board has determined that 

_ Proposed Amended_Ru,le - 1111 - Reduction of NOx Emissions From Natural-Gas-Fired,. 

~ `Fan-Type Central Fumaces, as proposed, references the following statutes which the 

SCAQMD hereby implements, interprets or makes specific: Health and Safety Code 

40001(a) (rules to meet air quality standards); 40440(a) (rules to carry out the plan); 

40702 (adoption of rules and regulations); and 

WHEREAS, the SCAQMD Governing Board has determined that 

Proposed Amended Rule 1111 - Reduction of NOx Emissions From Natural-Gas-Fired, 

Fan-Type Central Furnaces does not make an existing emission limit or standard more 

stringent, and therefore the requirements of Health and Safety Code § 40727.2 are 

satisfied; and 

WI3EREAS, the SCAQMD Governing Board has determined that 

Proposed Amended Rule 1111 = Reduction of NOx Emissions'From Natural-Gas-Fired, 

Fan-Type Central Furnaces will not result in increased costs; and 

W13EREAS, the SCAQMD Governing Board has determined that 

Proposed Amended Rule 1111 - Reduction of NOx Emissions From Natural-Gas-Fired, 

Fan-Type Central Furnaces will not result in emission reductions, and therefore no 

incremental cost analysis is required under Health and Safety Code § 40920.6; and 

WHEREAS, manufacturers of heating furnaces regulated by Proposed 

Amended Rule 1111 - Reduction of NOx Emissions From Natural-Gas-Fired, Fan-Type 

Central Furnaces may distribute and sell into the SCAQMD less or more than the 

number of fumaces estimated pursuant to each one year mitigation fee alternate 

compliance plan; and 

WHEREAS, heating furnaces regulated by Proposed Amended Rule 

1111 - Reduction of NOx Emissions From Natural-Gas-Fired, Fan-Type Central 

Furnaces may be used for more than twenty years; 'and 

WHEREAS, a public hearing has been properly noticed in accordance 

with the provisions of Health and Safety Code § 40725; and 

3 
WHEREAS, the SCAQMD'Governing Board has held a public hearing in 

accordance with all provisions of law; and 

' WHEREAS; the SCAQMD Governing Board specifies the Manager of 

Proposed Amended Rule 1111 - Reduction of NOx Emissions From Natural-Gas-Fired, 

Fan-Type Central Furnaces as the custodian of the documents or'other materials which 

constitute the record of proceedings upon• which the adoption of this proposed project is 

based, which are located at the South Coast Air Quality Management District, 21865 

Copley Drive, Diamond Bar, California; and 

WHEREAS; the SCAQMD Governing Board has determined that 

Proposed Amended Rule 1111 - Reduction of NOx Emissions From Natural=Gas-Fired, 

Fan-Type Central Furnaces, should be adopted for the reasons contained in the Final 

Staff Report; and 

NOW, THEREFORE, BE IT RESOLVED, that the SCAQMD 

Governing Boai•d does hereby' certify that the Final EA for Proposed Amended Rule 

1111 - Reduction of NOx Emissions From Natural-Gas-Fired, Fan-Type Central 

Furnaces, including responses to comments, was completed in compliance with CEQA 

and Rule 1-10 provisions; and that the Final EA was presented to the Governing Board, 

whose members reviewed, considered and approved the information therein prior- to 

acting on PARl l l l; and 

- BE' IT FURTHER RESOLVED, tHat because no significant adverse 

environmental impacts were identified as a result of implemefiting Ptoposed Amended 

Rule 1111 - Reduction of NOx Emissions From Natural-Gas-Fired, Fan-Type Central 

Furnaces, Findings, a .Statement of Overriding Considerations, and a Mitigation 

Ivlonitoring Plan are not required; and 

BE IT FURTHER RESOLVED, that the South Coast Air Quality 

Management District Board directs the Executive Officer to fund NOx emission 

reduction projects or series of projects that will offset and mitigate the more than 20 

years of excess emissions from sale of non-compliant heating furnaces under Rule 1111 

mitigation fee alternate compliance plans using Fund 27 — Air Quality Investment Fuhd; 

and

. 

BE IT FURTHER RESOLVED, that the South Coast Air Quality 

Management District Board directs the Executive Officer to recognize upon receipt 

mitigation fees paid by heating furnace manufacturers into Fund 27 (Air Quality 

Investment Fund) in order to reimburse Fund 27 for ainounts used for projects to 

mitigate excess emissions from sale of non-compliant fumaces pursuant to Proposed 

Amended Rule 1111 (c)(5); and 

0 
BE IT FURTHER RESOLVED, t11at the South Coast Air Quality 

Management District Board requests that Proposed Amended Rule 1111 be submitted 

into the State Implementation Plan; and 

BE IT FURTHER RESOLVED, that the Executive Officer is hereby 

directed to forward a copy of this Resolution and Proposed Amended Rule 1111 to the 

California Air Resources Board for approval and subsequent submittal to the U.S. 

Environmental Protection Agency for inclusion into the State Implementation Plan; and 

BE IT FURTHER RESOLVED, that the SCAQMD Governing Board 

does hereby adopt, pursuant to_ the_authority_granted_by law, Rule 1111 -. Reduction of 

NOx Emissions From Natural-Gas-Fired, Fan-Type Central Furnaces, as set forth in the 

attached and incorporated herein by reference. 

AYES: B. Benoit, J. Benoit, Burke, Buscaino, Cacciotti, Gonzales, Lyou, 

I Mitchell, Nelson, Parker, Pulido, and Yates. 

NOES: None. 

ABSTAIN: None. 

ABSENT: Antonovich. 

Dated` , ,' t 

Saundra McDaniel, Clerk of the Boards 

5