Final Staff Report for Rule 4702

SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT

FINAL STAFF REPORT

Revised Proposed Amendments to

Rule 4702 (Internal Combustion Engines – Phase 2)

June 16, 2005

Prepared by: Saul Gamez, Air Quality Engineer

Sandra Lowe-Leseth, Air Quality Engineer

Reviewed by: George Heinen, Supervising Air Quality Engineer

Joven R. Nazareno, Senior Air Quality Engineer

Mike Oldershaw, Senior Air Quality Inspector

Kevin McCaffery, Air Quality Specialist

Kamaljit Sran, Senior Air Quality Engineer

I. REASONS FOR RULE DEVELOPMENT AND IMPLEMENTATION

The San Joaquin Valley Air Basin (SJVAB) is classified as an extreme ozone

nonattainment area and a serious Particulate Matter less than or equal to 10 microns

(PM10) nonattainment area for the health-based air quality standards established by the

federal Clean Air Act. The SJVAB is also classified as severe nonattainment for the

California ozone standard and nonattainment for the California PM10 standard.

This rulemaking project is part of the District’s ozone and particulate matter attainment

strategies. As such, this project is subject to the following state and federal

requirements:

• Ozone and PM10 attainment plans need to implement control measures as

expeditiously as practicable, and provide for attainment. Clean Air Act (CAA)

Section 172(c)(1)

• Ozone attainment plans need to assure that reasonably available control technology

(RACT) for volatile organic compounds (VOC) and nitrogen oxides (NOx) is in use at

major sources and on source categories subject to control technology guidelines.

CAA Sections 182(b)(2), 182(f)

• PM10 attainment plans for serious PM10 nonattainment areas need to assure that

the best available control measures (BACM) for the control of PM10 shall be
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implemented no later than 4 years after the date the area is classified (or

reclassified) as a serious area. CAA Section 189(b)(1)(B)

• BACM provisions in attainment plans should include the application of best available

control technology (BACT) to existing major stationary sources. (Federal Register

8/16/94)

• The control requirements for major stationary sources of PM10 also apply to PM10

precursors (precursors for PM10 in the SJV are oxides of sulfur (SOx) VOC, and

NOx). CAA Section 189(e)

• Ozone attainment plans should provide for best available retrofit control technology

(BARCT) for existing permitted sources. California Health & Safety Code (CH&SC)

Section 40919(a)(3)

• Ozone attainment plans should include “all feasible control measures.” CH&SC

Section 40914(a)(2)

To satisfy the attainment goals of the ozone and PM10 plans, this rulemaking project

will seek to obtain as much emission reduction from each applicable source category as

is expeditiously practicable, technologically feasible, and economically reasonable, as

determined by the District’s Governing Board. The rulemaking project is also intended

to satisfy the state and federal requirements identified above. The rulemaking project

would also implement the requirements for internal combustion engines used in

agricultural operations pursuant to Section 40724 of the California Health and Safety

Code.

II. OVERVIEW

On September 22, 2003, the Governor signed Senate Bill 700 (SB 700), which added or

amended several sections of the California Health and Safety Code. Due to those new

mandates of the California Health and Safety Code, District staff is proposing to amend

Rule 4702 and remove the existing exemption for engines used in agricultural

operations. Rule 4702 would be expanded to include all engines over 50 horsepower

used in agricultural operations, except in cases where such engines qualify for an

exemption that is already in the rule or in cases where such engines qualify for a new,

appropriate, and justifiable, limited exemption. The implementation of federal and state

clean air standards by reducing emissions from agricultural engines would be included

in Rule 4702. Pursuant to California Health and Safety Code Section 39011.5(a)(2), the

proposed amendments would make Rule 4702 applicable to internal combustion

engines used in agricultural operations, “including, but not limited to, engines subject to

Article 1.5 (commencing with Section 41750) of Chapter 3 of Part 4 except engines that

are used to propel implements of husbandry, as that term is defined in Section 36000 of

the Vehicle Code, as that section existed on January 1, 2003.”
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In addition, this project will also make compression-ignited engines used in either

agricultural operations (AO) or non-agricultural operations (non-AO) subject to Rule

4702. The proposed amendments to Rule 4702 are discussed in Section V of this final

staff report.

District staff intends to submit the proposed amendments of Rule 4702 to the District

Governing Board in the second quarter of 2005 to ensure that the Governing Board has

sufficient time to review and approve the amended rule before the July 1, 2005 deadline

specified in Section 40724(a)(2) of the California Health and Safety Code.

III. RULE DEVELOPMENT PROCESS

As part of the rule development process, District staff conducted public scoping meetings

in Bakersfield, Fresno, and Modesto in April 2004. The purpose of the scoping meetings

was to present the objectives of the proposed rulemaking project and collect information

that would be useful in developing proposed amendments to Rule 4702. District staff

solicited comments from interested parties, affected industry operators, and stakeholders.

A draft version of Rule 4702 was not available at the time of the scoping meetings. At the

scoping meetings, affected source operators, consultants, vendors and manufacturers of

control technologies, and trade associations were requested to provide technical feasibility

and compliance cost information which would be useful in developing proposed

amendments to the rule. The information obtained from the scoping meetings was used

by District staff, as appropriate, to develop proposed amendments to the rule and the final

staff report.

District staff conducted public workshops in Bakersfield, Fresno, and Modesto in August

and September 2004, in January 2005, and April 2005, to present and discuss the

proposed amendments to Rule 4702. The comments received from the public, affected

sources, and ARB during the public workshop process were incorporated into draft Rule

4702 as appropriate.

Pursuant to state law, District staff is required to perform a socioeconomic impact analysis

prior to the adoption, amendment, or repeal of a rule that has significant air quality benefits

or that will strengthen emission limitations. As part of the District socioeconomic analysis

process, District staff sought a limited number of representatives from interested groups to

participate as members of a Focus Group. The Focus Group assisted District staff in

determining the appropriate method of gathering information on regulatory compliance

costs and business impacts resulting from compliance with the rule.

The results of the socioeconomic analysis were published in a report that was presented

to the public and interested parties during the final workshops for Rule 4702, in April 2005.
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IV. BACKGROUND

Internal combustion engines (ICE) are used by a large variety of private businesses and

public agencies throughout the SJVAB. Examples of businesses that use internal

combustion engines that could be affected by this project include schools and universities,

dairies, agricultural production, refiners, food processing, public water districts, and

manufacturing. Many of the permitted compression-ignited engines are used as

emergency engines. Such emergency engines are used to provide backup power when

electric service is interrupted.

The United States Environmental Protection Agency (EPA) published a final ruling

on May 18, 2004, approving amended Rule 4701 and adopted Rule 4702 into the

State Implementation Plan (SIP). EPA recommended in the Technical Support

Document for the Notice of Proposed Rulemaking that the District make the

following improvements in the next revision of Rule 4701.

1. In subsection 5.2 of amended Rule 4701, the low-use exemption should be

revised to ensure that appropriate RACT limits apply to compression-ignited

(diesel) low-use ICE at major NOx sources throughout the valley including those

on the Westside.

District response to EPA’s recommendation 1: As the engines referenced will be

subject to Rule 4702, the recommendation will be considered in Rule 4702. District

staff identified two low-use engines (restricted to operate no more than 1000 hours

in a calendar year) with Permits-to-Operate that are subject to Section 5.2 of Rule

4701. With the exception of engines that are exempt, the proposed provisions of

Rule 4702 would require engines that operate more than 200 hours per calendar

year to comply with the limits or standards of Table 1 or Table 2 of Rule 4702. The

two low-use engines identified by District staff would need to comply with the more

stringent proposed limits of Rule 4702 if they continue to operate at 1000 hours per

year. The proposed provisions of Section 7.5 and Section 7.6 of Rule 4702 would

specify that engines that are subject to Rule 4701 would no longer be subject to

Rule 4701 effective when such engines are required to be in compliance with Rule

4702.

2. In subsection 5.1.3 of amended Rule 4701, the District should review the existing

NOx emission limit for diesel ICE at public water districts and either establish a

more stringent limit or provide support for retention of the existing limit consistent

with the requirement to implement BACT for significant source categories.

District response to EPA’s recommendation 2: As the engines referenced will be

subject to Rule 4702, the recommendation will be considered in Rule 4702. Diesel

engines at public water districts will need to comply with the proposed requirements

of Rule 4702. The proposed provisions of Section 7.5 and Section 7.6 of Rule 4702

would specify that engines that are subject to Rule 4701 would no longer be subject
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to Rule 4701 effective when such engines are required to be in compliance with Rule

4702. Proposed Rule 4702 would require diesel engines at public water districts,

except engines that are exempt, to comply with the limits or standards of Table 2.

Emissions from diesel engines at public water districts would be reduced as the

proposed limits and standards of Table 2 are more stringent than the existing NOx

emission limit of Rule 4701 for such engines.

A. Existing Rule 4701 Requirements

Rule 4701 was adopted on May 21, 1992, and last amended on August 21, 2003. The

purpose of Rule 4701 is to limit Carbon Monoxide (CO), NOx, and VOC emissions from

internal combustion engines. The rule applies to engines rated greater than 50 brake

horsepower (bhp) that require a Permit-to-Operate. Engines used in the growing of

crops or raising of fowl or animals are currently exempt from Rule 4701.

The NOx limits in Table 3 of Rule 4701 range from 50 to 600 ppm, or 20% to 90%

reduction depending on the type of engine (i.e., rich burn, lean burn, beam-balanced or

crank-balanced pumping rich burn) and the type of fuel used (waste derived gaseous

fuel, diesel, or dual fuel). The CO limit is 2000 ppmv and the VOC limit is 250 to 750

ppmv depending on the type of engine and fuel used. The NOx limit in Table 3 of Rule

4701 for diesel fueled (compression-ignited) engines is 80 ppmv or 90% reduction. The

rule contains provisions for periodic source testing, monitoring, emission control plan,

periodic compliance testing, and recordkeeping.

Currently, both Rule 4701 and Rule 4702 will be in effect at the same time for nonagricultural engines. It is necessary that both Rule 4701 and Rule 4702 be in effect at

the same time because most engines currently subject to Rule 4701 would have several

years before they need to be in compliance with Rule 4702. As noted in Section V

below, District staff is proposing amendments to Rule 4702 that would specify that an

engine would no longer be subject to Rule 4701 when such engine is required to be in

full compliance with Rule 4702. This should limit the amount of time that an engine

would be subject to both Rule 4701 and Rule 4702. AO engines would only be subject

to Rule 4702 as they are exempt from Rule 4701. Engines that do not require a Permitto-Operate could be subject to Rule 4702 but are exempt from Rule 4701.

B. Existing Rule 4702 Requirements

Rule 4702 was adopted on August 21, 2003, and was submitted to EPA for approval

into the SIP. The purpose of Rule 4702 is to limit NOx, CO, and VOC emissions from

stationary spark-ignited internal combustion engines. The rule applies to spark-ignited

engines rated greater than 50 brake horsepower that require a Permit-to-Operate.

California Air Resources Board’s (ARB) Final RACT/BARCT Determination for Spark

Ignited Internal Combustion Engines was the primary guidance document used by

District staff in the development of Rule 4702. The RACT/BARCT Determination, dated

November 2001, presents the technology for controlling NOx, CO, and VOC from
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stationary, spark-ignited internal combustion engines. District staff also considered the

provisions of District Rule 4701 and the engine rules of other air districts in California.

Engines in agricultural operations used in the growing of crops or raising of fowl or

animals are currently exempt from Rule 4702 due to previous state law.

The current NOx limits in Table 1 of Rule 4702 range from 25 ppmv to 75 ppmv, or 85%

to 96% reduction depending on the type of engine (i.e., rich burn, lean burn, beambalanced or crank-balanced pumping rich burn) and the type of fuel used (waste derived

gaseous fuel, or other). The CO limit is 2000 ppmv for all engines and the VOC limit is

250 ppmv for rich burn and 750 ppmv for lean burn engines. Table 1 of Rule 4702 does

not have any limits for compression-ignited engines, as the rule does not currently apply

to such engines. The rule contains provisions for monitoring, emission control plan,

recordkeeping, periodic compliance testing, and an Alternative Emission Control Plan.

Rule 4702 allows engines used in certain specific applications, such as an emergency

standby engine or a transportable engine, to be exempt from the emissions standards

or other requirements of the rule. Rule 4702 also allows engines that are operated no

more than 200 hours per calendar year and meet other conditions, to be exempt from

the emissions standards of the rule and other requirements of the rule. District staff

anticipates that certain operators will modify the operation of their engines to take

advantage of current exemptions allowed in Rule 4702.

C. Federal and State Clean Air Standards

The proposed amendments would implement federal and state clean air standards. In

addition to the standards recommended in the ARB Final RACT/BARCT Determination

for Spark Ignited Internal Combustion Engines, dated November 2001, District staff

considered the standards for internal combustion engines in other air districts.

• South Coast Air Quality Management District, Rule 1110.2 (Emissions From

Gaseous- and Liquid-Fueled Engines), requires owners/operators to either remove

such engine permanently from service or replace the engine with an electric motor or

reduce emissions for any stationary engine to 36 ppm NOx (500 bhp or greater) or

45 ppm NOx (greater than 50 bhp and less than 500 bhp), 250 ppm VOC, and 2000

ppm CO.

• Ventura County Air Pollution Control District, Rule 74.9 (Stationary Internal

Combustion Engines), requires the owner/operator of a stationary internal

combustion engine to limit NOx emissions to the following limits: Rich-burn, general,

25 ppm or 96% reduction; Lean-burn, general, 45 ppm or 94% reduction; Diesel, 80

ppm or 90% reduction.

Neither the South Coast AQMD rule nor the Ventura County APCD rule applies to

internal combustion engines in agricultural operations. District staff will consider the

latest developments regarding other regulations from EPA and ARB that may impact
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stationary internal combustion engines that would be subject to the proposed

amendments to Rule 4702. In July 2003, ARB adopted new fuel standards that will

require a reduction of more than 95% in the amount of sulfur in diesel fuel. The new

sulfur standard will be phased in starting in mid-2006. It aligns California off-road diesel

fuel sulfur standards with federal diesel sulfur standards, which require a sulfur limit of

15 parts-per-million starting in 2006. California's rule will apply to diesel fuel sold for

both on-road and off-road vehicles, while the federal standards will apply to diesel fuel

for on-road vehicles only.

On February 27, 2004, ARB approved five diesel air quality measures. One of the

measures was an Airborne Toxic Control Measure (ATCM) to reduce public exposure to

diesel particulate matter and to control criteria pollutants emitted from stationary diesel

fueled, compression-ignited engines (stationary diesel engines). The control measure

would reduce diesel PM and control criteria pollutant emissions through a combination

of limits on annual operating hours and application of best available control technology.

Two other measures approved are an ATCM for portable diesel engines and

modifications to the Portable Engine Registration Program. And, as noted above, SB

700 was signed into law in September 2003. Engine operators are reminded that they

could be subject to other federal or state requirements in addition to the measures

noted above and the proposed requirements of draft Rule 4702.

V. PROPOSED AMENDMENTS TO RULE 4702

The purpose of this project is to control NOx, CO, and VOC emissions from stationary

spark-ignited internal combustion engines used in agricultural operations and from

compression-ignited engines used in either agricultural operations or non-agricultural

operations. Rule 4702 would be amended in order to control the NOx, CO, and VOC

emissions from these engines. The requirements of current Rule 4701 would remain in

place for an engine until such engine is required to be in full compliance with the

proposed amendments to Rule 4702. Engines used in agricultural operations would be

subject to Rule 4702 and would not be subject to Rule 4701. A summary of the

proposed amendments to Rule 4702 is listed below.

In addition to the engines specifically exempted in Section 4.0 of the rule, Rule 4702

does not apply to mobile sources and engines for which the District is precluded from

regulating per state or federal statue. This would include, for example, a motor vehicle

engine that provides power through a power-take-off (PTO) device to an oil-well

workover rig or portable agricultural irrigation pump.

As necessary, the current requirements of Rule 4702 would be amended to explicitly

specify whether the requirement applies to one or more of the following categories of

engines: spark-ignited engines, AO spark-ignited internal combustion engines, non-AO

spark-ignited engines, compression-ignited engines, AO compression-ignited engines,

or non-AO compression-ignited engines. Any new proposed amendments would also
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explicitly specify, as necessary, whether the requirement applies to one or more of the

categories of engines.

In another rulemaking project, District staff has started working on new Rule 2250

(Stationary Equipment Registration). New Rule 2250 would specify requirements for

registering engines used in agricultural operations that do not require a Permit-toOperate and that are not subject to the requirements of Section 5.1.

A. Section 1.0 Purpose

The purpose would be modified to limit the emissions of nitrogen oxides, carbon monoxide

, and volatile organic compounds from all stationary internal combustion engines. The

proposed change would make the purpose apply to stationary spark-ignited engines at

agricultural operations and stationary compression-ignited engines.

B. Section 2.0 Applicability

The rule’s applicability would be modified to remove the Permit-to-Operate condition so

that the rule would apply to any stationary internal combustion engine with a rated brake

horsepower greater than 50 horsepower. The change would allow compression-ignited

engines and some additional spark-ignited engines to become subject to the rule, even if

the engine is not required to have a Permit-to-Operate.

C. Section 3.0 Definitions

Definitions for the following terms would be added: Agreement to Electrify, Agricultural

Operations, Certified Spark-ignited Engine, Compression-Ignited Internal Combustion

Engine, Installation Date, Mobile Agricultural Equipment, Public Utilities Commission

(PUC) Quality Natural Gas, Tier 1 Engine, Tier 2 Engine, Tier 3 Engine, or Tier 4 Engine,

Wind Machine. The addition of these terms would provide clarity in the rule

requirements. The requirement for a time meter contained in the definition for

emergency standby engine would be modified so that in lieu of installing a non-resettable

time meter, the owner of an engine may use an alternative device, method, or

technique, in determining operating time provided that the alternative is approved by the

Air Pollution Control Officer (APCO). This change to the time meter requirement is

proposed in response to comments from operators who have noted that their engines’

operating times are maintained through some type of computerized device. This

change to the time meter requirement is also proposed for other sections of the rule that

specify a time meter.

D. Section 4.0 Exemptions

The exemption for engines in agricultural operations and the exemption for

transportable engines would be removed. The agricultural engine exemption removal is
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required to comply with the requirements of California Health and Safety Code Section

40724. District staff believes that there are technologies available that would make it

possible for transportable engines to comply with the proposed requirements of draft

Rule 4702; therefore, the exemption for transportable engines would be removed.

Engines that are transportable per Rule 4701 and are currently exempt from Rule 4701,

or that are transportable per Rule 4702 would need to comply with the proposed

requirements of draft Rule 4702 based on the type and use of the engine. AO engines

that would otherwise be considered as transportable per Rule 4701 would need to

comply with the proposed requirements of draft Rule 4702 based on the type and use of

the engine. The requirement of Section 4.3.1 for a time meter would be modified so that

in lieu of installing a non-resettable time meter, the owner of an engine may use an

alternative device, method, or technique, in determining operating time provided that the

alternative is approved by the APCO.

Several new exemptions, listed below, are proposed that would allow an engine to be

exempt from all the requirements of the rule.

• An engine used to propel implements of husbandry, as defined in Section 36000 of

the California Vehicle Code dated January 1, 2003. This exemption is contained in

California Health and Safety Code Section 39011.5 (a)(2) as part of the definition of

an agricultural source. This category includes, but is not limited to, tractor engines

and equipment driven by the power takeoff (PTO) attachment of the tractor.

• An engine used exclusively to power Mobile Agricultural Equipment. This exemption

is being proposed in response to a request from Industry. The District has not

regulated this type of engine previously. District staff may consider some controls

for such engines in the future. This category is equipment at an agricultural

operation which is towed or mounted on a vehicle and is continuously moved during

the operation of the equipment. Mobile Agricultural Equipment includes, but is not

limited to sprayers, balers, and harvest equipment. Trailer-mounted irrigation pumps

or similar equipment are not considered to be Mobile Agricultural Equipment since

they are stationary during operation.

• An engine used exclusively to power a wind machine. District staff is proposing that

an engine used exclusively to power a wind machine that is used for crop protection

be exempt from all provisions of Rule 4702. This proposed exemption is in response

to industry’s comments and is based on information provided by industry that noted

the very limited operation of wind machines and the time of year that wind machines

are operated.

According to information provided by industry, wind machines powered by propane

or diesel protect approximately 70 percent of the citrus crop acreage with

approximately one machine for every ten acres. Citrus growers will generally only

operate their wind machines when the temperature drops to 28 degrees and it is

expected to remain at or below that level for at least four hours. Electric wind
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machines are used for only ten percent of the citrus acreage, as they are not cost

effective due to the prohibitive stand-by charges assessed by the utilities. The

remaining acreage does not have wind machine protection. Either the fruit is

harvested prior to the frost season or a grower has made a personal decision not to

install machines because his/her grove is located in a warm microclimate.

It is important to note that several microclimates comprise the citrus region, hence

not all machines operate simultaneously. Wind machines are expensive to operate,

and their sole function is to protect the crop. They have no other use.

Operation/Historical Usage: The official frost season runs November to March.

Historically, the coldest part of the frost season is mid-December to mid-January. As

indicated above, usage is dictated by temperature and there is a usage fluctuation

from season to season. In the past three years, the usage has averaged 35 hours

annually, with several machines running fewer hours or not operating at all. The

rule’s proposed 200 hours threshold addresses the industry’s needs.

• A de-rated spark-ignited engine used in agricultural operations or to a de-rated

compression-ignited engine, provided the de-rating occurred before June 1, 2005.

District staff is proposing this exemption as it is very similar to the existing exemption

for spark-ignited engines.

Section 4.1, Section 4.2, and Section 4.3 would be amended to clarify the requirements,

if any, to which such engines are subject.

A new exemption from certain requirements of Rule 2201 (New and Modified Stationary

Source Review Rule) is proposed for certain replacement engines. A replacement

certified engine installed for the sole purpose of complying with requirements of this rule

would be exempt from the Best Available Control Technology and Offsets requirements

of District Rule 2201 provided that certain conditions are met. This exemption is

proposed as Rule 4702 replacement engines would otherwise not qualify for the

replacement engine BACT exemption in Rule 2201. This new exemption would not

impact the requirements of Rule 4702 with which these engines would need to comply.

E. Section 5.0 Requirements

Section 5.1 Engine Emission Limits/Standards - Section 5.1.1 of the draft rule

would add the emission limits/standards and the compliance schedules for AO sparkignited engines. Section 5.1.2 of the draft rule would add the emission limits/standards

and the compliance schedules for compression-ignited engines. Limits/standards for

compression-ignited engines would depend on the current level of control and brake

horsepower of the engine. The primary factors considered in the determination of the

proposed limits/standards were the costs of the controls, the current emissions level of

the engines to be controlled, and the availability of certified engines. In addition, District

staff has tried to mitigate the results of the socioeconomic impact analysis as evidenced
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by the proposed emission limits/standards, compliance dates and other requirements

(such as monitoring, emission control plan, and compliance testing) of the rule for the

various types of engines.

Emission Limits/Standards for AO Spark-ignited Engines

The proposed amendments to Rule 4702 would require the owner of an AO noncertified spark-ignited engine to meet the emission limits by January 1, 2008. However,

if an owner of an AO non-certified spark-ignited engine has an agreement to electrify

the owner would need to comply by 1/1/2010 by electrifying. The proposed

amendments to Rule 4702 would require the owner of a certified spark-ignited engine to

meet the emission limits/standards by June 1, 2006. Table 1 below indicates the

limits/standards for spark-ignited engines used exclusively in agricultural operations.

District staff modified the proposed rule such that non-certified AO spark ignited engines

without catalyst would not require source testing, but only require surrogate monitoring

of operating parameters and periodic monitoring using a hand-held portable NOx

analyzer. AO spark ignited engines with catalyst would be source tested at least once

every five years.

District staff revised the proposed NOx limit for AO spark-ignited engines to 150 ppmv

(lean-burn) and 90 ppmv (rich-burn). The 150 ppmv can be met without installing and

operating a selective catalytic reduction (SCR) on AO spark-ignited engines. The 90

ppmv limit can be met with the need to install and operate non-selective catalytic

reduction (NSCR). Eliminating SCR and NSCR associated with more stringent limits

would significantly reduce compliance costs of AO spark-ignited engines.

Staff believes the 150/90 ppmv limits are appropriate for AO spark-ignited engines

considering the economic impacts on San Joaquin Valley agriculture if more stringent

limits are imposed. Unlike AO diesel engines, AO spark-ignited engines are not eligible

for Moyer funding which would reduce the economic impacts associated with

compliance cost. Agriculture is economically depressed as evidenced by continued

economic assistance from the federal government in the form of subsidies/grants in an

effort to even the economic playing field resulting from increased importation into the

U.S. of cheaper cost products from foreign countries. Agriculture’s inability to pass the

increased production costs to consumers as well increased competition with imported

products make it difficult for agriculture to absorb the compliance cost associated with

more stringent limits for AO spark-ignited engines. Additionally, the new proposed limits

would prevent operators from replacing AO spark-ignited with a diesel engine (this

would also prevent increase in PM emissions if spark-ignited engines are replaced with

diesel engines).
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Emission Limits/Standards for AO Compression-ignited Engines

The proposed emission standards for compression-ignited engines are primarily based

on repowering with EPA certified engines rather than installing a retrofit control

technology to limit emissions of air pollutants. EPA certified engines have to undergo

stringent testing and certification procedures that guarantee the lowest possible

emissions. An EPA certified engine is defined in the rule as a Tier 1, Tier 2, Tier 3, or

Tier 4 compression ignited engine that is certified by EPA pursuant to Title 40 of the

Code of Federal Regulations, June 29, 2004. A large majority of existing Tier 1 and Tier

2 engines have been funded by the Carl Moyer Program (Moyer) and the Federal

Environmental Incentive Quality Program (EQIP). It is sensible to maximize the

investment already made on existing Tier 1 and Tier 2 engines by repowering with lower

emissions Tier 4 engines instead of requiring retrofit controls. Repowering would allow

utilization of Moyer and EQIP funding to offset the agriculture industry’s cost to comply

with the proposed Rule 4702 and achieve emission reductions in advance of the rule

deadline. In addition, repowering with EPA certified engines would reduce the costs of

periodic emissions monitoring and source testing associated with operating a retrofit

control technology.

Table 2 below indicates the proposed limits/standards for compression-ignited engines.

Table 3 below summarizes the compliance schedule for compression-ignited engines.

The proposed compliance schedule was developed to reduce emissions from the dirtiest

engines (i.e., uncertified units) first. Extended compliance dates are proposed for cleaner

Tier 1 and Tier 2 certified engines in recognition of their lower emissions. A two year

extended compliance date is proposed for the owner of a non-certified compressionignited engine that is 500 bhp or more and is operated 1,000 hours or more in an year

and that has a binding contract to electrify. In addition, in response to stakeholders’

comments regarding the potential replacement of engines before an engine’s useful life

is over, the compliance date for Tier 1 and Tier 2 engines has been changed to allow

such engines to be used for at least twelve years after its installation date (as defined in

the rule).

During the rulemaking process, agricultural representatives have commented that the

costs to comply with the proposed rule requirements, and with the PM10 standards

requirements of the upcoming ARB Air Toxic Control Measure for existing AO diesel

engines could have a significant financial impact on agricultural sources. They have

further commented that the availability of Moyer funds is essential to ensure that

agricultural sources will be able to comply with the proposed rule requirement to

repower older, dirtier diesel engines with cleaner EPA certified engines. In recognition

of these comments, District staff feels that the extended compliance dates would allow

operators sufficient time to apply for Moyer funding, purchase and install a compliant

engine, and to operate their engine and generate enough surplus emissions reduction

to qualify for the maximum Moyer monetary incentive allowed. Moyer funds would help

mitigate the financial impacts of engine replacement and the installation of PM10 filter

traps, if any. The AO diesel engine operators would actually have to comply with the
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proposed Rule 4702 limits earlier than the proposed compliance dates in order to qualify

for the maximum Moyer monetary incentive. Therefore, emission reductions are

obtained at the earliest date while allowing maximum use of Moyer funds to mitigate the

financial impacts to operators.

In light of the extended compliance dates, District staff was concerned that, prior to the

compliance date, a non-permitted engine could be replaced with a dirtier engine. In

addition, in light of the different requirements, and related compliance costs, for sparkignited engines and certified compression-ignited engines, District staff was concerned

that operators would want to replace a spark-ignited engine with a compression-ignited

engine. To prevent, or minimize, these situations, Section 5.1.3 and Section 5.1.4 have

been added to the rule and District staff has attempted to make the proposed

requirements for a spark-ignited engine and a compression-ignited engine as comparable

as is reasonable.

Stakeholders raised concerns regarding how the proposed requirements of Rule 4702

would impact rental engines used for irrigation. The proposed requirements of Rule 4702

would apply equally to rental engines as they would to non-rental engines. Permit-toOperate requirements for rental engines will be addressed in the permitting rules of the

District later. In addition, District staff has started working on the Rule 2250 (Stationary

Equipment Registration) rulemaking project and will specify requirements for rental

engines as appropriate.

Table 1 – Emission Limits/Standards for Spark-Ignited Engines Used Exclusively in

Agricultural Operations (corrected to 15% oxygen on a dry basis)

Engine

Description

Proposed Emission Limits/Standards Compliance Deadline

Non-Certified

Rich Burn

NOx - 90 ppmv or 80% reduction

CO - 2000 ppmv

VOC - 250 ppmv

1/1/2008 or if owner has an

agreement to electrify

comply by 1/1/2010

Non-Certified

Lean Burn

NOx - 150 ppmv or 70% reduction

CO - 2000 ppmv

 VOC – 750 ppmv

1/1/2008 or if owner has an

agreement to electrify

comply by 1/1/2010

ARB Certified

Spark-Ignited

Engine

ARB Certified Spark-Ignited Engine with

Certification Level for hydrocarbon plus

NOx emissions of 0.6 grams/bhp-hr

(40.2 ppmv) or less

6/1/2006
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Table 2 – Emission Limits/Standards for Compression-Ignited Engines (corrected to

15% oxygen on a dry basis)

Engine Description Proposed Limit/Standard

Non-certified, greater than 50 bhp but not

more than 500 bhp

Meet EPA Tier 3 or Tier 4 limits/standards

Non-certified, greater than 500 bhp but not

more than 750 bhp and less than 1,000

annual operating hours

Meet EPA Tier 3 limits/standards

Non-certified, greater than 750 bhp and

less than 1,000 annual operating hours

Meet EPA Tier 4 limits/standards

Non-certified, 500 bhp and greater than or

equal to 1,000 annual operating hours

80 ppmv NOx/2,000 ppmv CO/750 ppmv

VOC

EPA Tier 1 Engine or Tier 2 Engine Meet EPA Tier 4 limits/standards

EPA Tier 3 Engine or Tier 4 Engine Meet EPA Certified Engine Standard in

effect at time of installation

Table 3 – Compliance Schedule for Compression-Ignited Engines

Engine Type Compliance Date

Non-Certified Engines

. Greater than 50 bhp but not more than 500 bhp 1/1/2010

. Greater than 500 bhp but not more than 750 bhp and

less than 1,000 annual operating hours 1/1/2010

 Greater than 750 bhp and less than 1,000 annual

operating hours 7/1/2011

d. Greater than 500 bhp and greater than or equal to

1,000 annual operating hours

1/1/2008 or if owner has an

agreement to electrify comply by

1/1/2010

EPA Certified Tier 1 and Tier 2 Engines 1/1/2015 or 12 years after

installation date, whichever is later

EPA Certified Tier 3 and Tier 4 Engines At time of installation

The likely control technology to meet the proposed emission limits for a rich-burn engine

will be the use of pre-stratified charge controls. For a spark-ignited lean-burn engine,

the likely control technique would be to retrofit the engine with low-emission combustion

controls. Other control techniques may be used to supplement these retrofits, such as

ignition system modifications and engine de-rating.

The likely technology to meet the proposed emission limits/standards for a

compression-ignited engine is by replacing with an EPA certified engine. For a

compression-ignited engine that does not have an acceptable EPA certified engine
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available, selective catalytic reduction may be used to achieve the proposed

limits/standards.

California Health and Safety Code Section 40724 requires the District to ensure that

BARCT established pursuant to Section 40724 for an internal combustion engine is

similar to BARCT for other stationary source engines subject to regulation by a district

or state board. District staff has evaluated BARCT for non-AO spark-ignited engines

and determined that the level of control (approximately 90% control of NOx from

uncontrolled levels) is similar to the level of control for AO spark-ignited engines.

District staff has also evaluated BARCT for non-AO compression-ignited engines and

determined that the level of control is the same as the level of control for AO

compression-ignited engines.

Section 5.6 Monitoring Requirements A - Monitoring requirements would be

amended so that Section 5.6 would apply to the owner of a non-AO spark-ignited engine

subject to the requirements of Section 5.1 or any engine subject to the requirements of

Section 8.0. In response to stakeholder comments received, Section 5.6.6 would be

amended to remove the requirement that a fuel meter be installed, except for an engine

subject to Section 8.0. Section 5.6.6 would also be amended so that in lieu of installing a

non-resettable time meter, the owner of an engine may use an alternative device,

method, or technique, in determining operating time provided that the alternative is

approved by the APCO. Section 5.6.9 would be amended so that engine owners would

need to take NOx emission readings with a portable NOx analyzer in each calendar

quarter that a source test is not performed and the engine is operated. This will ensure

that an engine is not operated in a calendar quarter solely to take NOx emission

readings with a portable NOx analyzer.

Section 5.7 Monitoring Requirements B - The proposed monitoring requirements of

Section 5.7 are limited in comparison to the requirements of Section 5.6. Section 5.7

would apply to engines subject to Section 4.2 (emergency standby engines and engines

that operate less than 200 hours per year) and to AO spark-ignited engine and

compression-ignited engine subject to the requirements of Section 5.1 that have not been

retrofitted with an exhaust control and are not subject to the requirements of Section

8.0. For the purposes of this section, certified engines equipped with PM control traps

or filters are not considered retrofitted.

Proposed Section 5.7 would require the owner of an engine to comply with the

following:

• Properly operate and maintain each engine as recommended by the engine

manufacturer or emission control system supplier.

• Monitor the operational characteristics of each engine as recommended by the

manufacturer or emission control system supplier.
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• For each engine, install and operate a non-resettable elapsed operating time meter.

The owner shall maintain the required time meter in proper operating condition.

• For some engines, use a portable NOx analyzer to take NOx emission readings to

verify compliance with the emission requirements of Section 5.1 or Section 8.0 at

least once every six months or 24 months that the engine is operated.

Section 5.8 Stationary Equipment Registration - The proposed requirements would

apply to the owner of an engine used exclusively in agricultural operations except for an

engine that meets any one of the following conditions:

• The engine is required to have a Permit-to-Operate pursuant to California Health and

Safety Code Section 42301.16, or

• The engine is not required to comply with Section 5.1 of this rule.

The proposed Stationary Equipment Registration requirements would require the owner

of an applicable engine to register such engine pursuant to Rule 2250 (Stationary

Equipment Registration). Stationary Equipment Registration would provide the District

with an enforcement mechanism in lieu of a Permit-to-Operate.

F. Section 6.0 Administrative Requirements

As previously noted, certified engines equipped with PM control traps or filters are not

considered to be retrofitted certified engines.

Section 6.1 Emission Control Plan – Section 6.1 would be amended to clarify the

requirements of the section and to identify the engines that are subject to the section.

Section 6.2 Recordkeeping – Section 6.2 would be amended to remove the

recordkeeping for the quantity of fuel used except for an engine subject to Section 8.0.

Section 6.3 Compliance Testing - Section 6.3 would be amended to identify the

engines that are subject to the section. In addition, in response to a stakeholder’s

comment, an amendment is proposed that would allow engines that are permitted to run

exclusively on PUC quality natural gas to be exempt from the biennial source test

requirements of Section 6.3.1 for VOC emissions. After reviewing the results of previous

years’ source test data, District staff has determined that VOC emissions from an engine

that is permitted to run exclusively on PUC quality natural gas is consistently compliant

with the VOC limits of the rule. An AO spark-ignited engine that has been retro-fitted with

a catalytic emission control device and is not subject to the requirements of Section 8.0

would be required to source testing initially and every 60 months thereafter.

Section 6.5 Inspection and Monitoring Plan - Section 6.5 would be amended to

identify the engines that are subject to the section. The proposed amendments would
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make Section 6.5 not applicable to several types of engines. In most cases, this is

proposed as these engines are subject to the less rigorous monitoring requirements of

Section 5.7.

G. Section 7.0 Compliance Schedules

Section 7.1 Loss of Exemption - Section 7.1 would be amended to clarify the

requirements for the owner of an engine subject to Section 7.1 and that is not required

to have a Permit-to-Operate or a Stationary Equipment Registration.

Section 7.2 Engine Removal - Section 7.2 would be amended to clarify the

requirements for the owner of an engine subject to Section 7.2 to be consistent with

other proposed amendments of the rule.

Section 7.3 Compliance Schedule for an AO Compression-Ignited Engine -

Section 7.3 would be added to specify the compliance schedule that the owner of an AO

compression-ignited engine is required to meet in order to be in compliance with the

requirements of proposed Rule 4702.

Section 7.4 Compliance Schedule for an AO Spark-Ignited Engine - Section 7.4

would be added to specify the compliance schedule that the owner of an AO sparkignited engine is required to meet in order to be in compliance with the requirements of

proposed Rule 4702.

Section 7.5 Compliance Schedule for a Non-AO Compression-Ignited Engine -

Section 7.5 would be added to specify the compliance schedule that the owner of a nonAO compression-ignited engine is required to meet in order to be in compliance with the

requirements of proposed Rule 4702. Additionally, requirements would be added to

clearly specify when the requirements of Rule 4701 would no longer apply to a non-AO

compression-ignited engine.

Section 7.6 Compliance Schedule for a Non-AO Spark-Ignited Engine –

Amendments would be added to Section 7.6 to clearly specify the compliance schedule

that the owner of a non-AO spark-ignited engine is required to meet in order to be in

compliance with the requirements of proposed Rule 4702. Section 7.6 would be

amended to clarify that Section 7.6 applies to a non-AO spark-ignited engine.

Compliance Schedule 1, in Section 7.6, for a non-AO spark-ignited engine is unaffected by

the proposed rule amendments. Additionally, requirements would be added to clearly

specify when the requirements of Rule 4701 would no longer apply to a non-AO sparkignited engine.

H. Section 8.0 Alternative Emission Control Plan (AECP)

In response to stakeholders’ comments, a spark-ignited engine and a compressionignited engine that are subject to Section 5.1 are eligible for inclusion in an AECP.
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Section 8.3 would be amended to be consistent with other proposed amendments of the

rule. Section 8.6 would be amended to clarify that Section 8.6 applies to a spark-ignited

engine.

VI. CURRENT EMISSIONS AND EMISSIONS REDUCTION

District staff has conducted an emissions reduction analysis of the proposed amendments

to Rule 4702. The emissions reduction analysis is in Appendix B of this final staff report.

VII. COST EFFECTIVENESS ANALYSIS

District staff has conducted a cost effectiveness analysis of the proposed amendments to

Rule 4702. The cost effectiveness analysis is in Appendix C of this final staff report.

VIII. SOCIOECONOMIC ANALYSIS

Pursuant to state law, District staff is required to analyze the socioeconomic impacts of

any proposed rule or rule amendment that significantly affects air quality or strengthens an

emission limitation. During the scoping meeting, District staff solicited volunteers from

stakeholders, and manufacturers and vendors of control devices to participate as

members of the socioeconomic focus group for the rule. District staff worked closely with

the focus group to estimate direct compliance costs of the proposed amendments. The

District’s independent consultant participated with the focus group to identify and analyze

the socioeconomic impacts of the proposed amendments to the rule. District staff has

considered the socioeconomic analysis to further refine the proposed rule amendments.

The socioeconomic report is attached as Appendix D to this final staff report, and was

presented to the public at the final workshop for the rules. The final socioeconomic report

will also be presented to the District Governing Board in order to disclose any expected

economic impacts.

A document titled “Compliance Cost and Socioeconomic Impact Analysis” (dated May 16,

2005) was submitted to the District on May 18, 2005 by the San Joaquin Valley

Agricultural Industrial Coalition. This document is attached as Appendix F to this final staff

report. The views presented in the document do not represent the views of the District.

IX. ENVIRONMENTAL IMPACTS

Pursuant to Section 15061 of the California Environmental Quality Act (CEQA), District

staff investigated the likely environmental impacts of the proposed amendments to Rule

4702. Based on this review, staff determined with certainty that the amendments have
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no possibility to result in significant impacts on the environment. Upon approval of this

project, a Notice of Exemption will be filed.

X. RULE CONSISTENCY ANALYSIS

Pursuant to the state Health and Safety Code, Section 40272.2, District staff has prepared

a rule consistency analysis of Rule 4702. The rule consistency analysis is in Appendix E

of this final staff report.

XI. REFERENCES

1. ARB “Final RACT/BARCT Determination for Spark-Ignited Internal Combustion

Engines” dated November 2001.

2. California Health and Safety Code, Various sections.

3. South Coast Air Quality Management District, Rule 1110.2 (Emissions From

Gaseous- and Liquid-Fueled Engines), amended November 14, 1997.

4. Ventura County Air Pollution Control District, Rule 74.9 (Stationary Internal

Combustion Engines), Revised November 14, 2000.

5. Federal Register: February 12, 2004 (Volume 69, Number 29), Proposed Rules, page

7098-7103.

6. Federal Register: June 29, 2004 (Volume 69, Number 124) Control of Emission of Air

Pollution from Nonroad Diesel Engines and Fuel; Final Rule

7. Technical Support Document for EPA's Notice of Proposed Rulemaking for the

California State Implementation Plan, San Joaquin Valley Unified Air Pollution

Control District, Rule 4701 (Internal Combustion Engines - Phase 1), Rule 4702

(Internal Combustion Engines - Phase 2), January 28, 2004.

8. California Senate Bill No. 700, Chapter 479, Filed September 22, 2003.
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