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,

2Fan-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