Judith G. Case Supervisor, Fresno County Ronn Dominici Supervisor, Madera County Henry Jay Forman, Ph.D. Appointed by Governor Randy Miller Mayor, City of Taft William O'Brien Supervisor, Stanislaus County Leroy Ornellas Supervisor, San Joaquin County Chris Vierra Mayor, City of Ceres Hub Walsh Supervisor, Merced County Raymond A. Watson Supervisor, Kern County Vacant Small City Representative, Kings County Vacant Large City Representative, Tulare County Vacant Appointed by Governor Seyed Sadredin Executive Director Air Pollution Control Officer Northern Region Office 4800 Enterprise Way Modesto, CA 95356-8718 1209) 557-6400 • FAX 12091557-6475 Central Region Office 1990 East Gettysburg Avenue Fresno, CA 93726-0244 15591230-6000 • FAX 15591230-6061 Southern Region Office 34946 Flyover Court Bakersfield, CA 93308-9725 16611392-5500 • FAX (661) 392-5585 

# HEALTHY AIR LIVING' 

# San Joaquin Valley AIR POLLUTION CONTROL DISTRICT
GOVERNING BOARD J. Steven Worthley, Chair Supervisor, Tulare County Ann Johnston, Vice Chair Mayor, City of Stockton Tony Barba Supervisor, Kings County DATE: August 18, 2011 TO: SJVUAPCD Governing Board FROM: Seyed Sadredin, Executive Director/APCO

Project Coordinator: Errol Villegas RE: STATE IMPLEMENTATION PLAN (SIP) SUBMITTAL AMENDMENT FOR RULE 4694 (WINE FERMENTATION AND STORAGE TANKS)
RECOMMENDATIONS: 1. Approve the State Implementation Plan (SIP) submittal amendment to request EPA approval of only the wine storage provisions of Rule 4694 (Wine Fermentation and Storage Tanks). 2. Authorize the Chair to sign the attached resolution.
BACKGROUND: Your Board adopted District Rule 4694 (Wine Fermentation and Storage Tanks) on December 15, 2005. The District submitted the adopted rule to the California Air Resources Board (ARB) for inclusion in the State Implementation Plan (SIP), which was subsequently submitted by ARB to the federal Environmental Protection Agency (EPA) for approval. During their extended review of Rule 4694, based on information provided by the District, EPA concurred that there are, at present or in the foreseeable future, likely no reasonably available control technologies to reduce VOC emissions during the wine fermentation process. However, due to the lack of control technologies to reduce VOC emissions from wine fermentation operations, the District included provisions in Rule 4694 for an alternative compliance approach to obtain emission reductions from other sources. Under these provisions, winery operations have achieved significant early reductions from other operations under their control. Even though these provisions have resulted in additional emissions reductions,

www.valleyair.orgSJVUAPCD Governing Board

STATE IMPLEMENTATION PLAN (SIP) SUBMITTAL AMENDMENT FOR RULE 4694 (WINE FERMENTATION AND STORAGE TANKS) August 18, 2011 EPA has expressed concern over including them in the SIP because they may not conform to EPA's specific guidance concerning economic incentive programs. To address EPA's concerns, the District proposes to amend its original SIP submittal by withdrawing the wine fermentation provisions of Rule 4694 for consideration and SIP inclusion, as recommended by EPA. The requirements will still remain a part of the District rule, but would not be officially included in the SIP. The attached resolution documents the amendment and includes a copy of Rule 4694 with all wine fermentation provisions represented as strike-out text. DISCUSSION: The District's 2003 PM10 Plan and 2004 Extreme Ozone Attainment Demonstration Plan, for 1-hour ozone, identified the need to address emissions of volatile organic compounds (VOC) from wine fermentation and wine aging processes in the San Joaquin Valley. As such, the District developed and adopted Rule 4694 to reduce VOC emissions resulting from wine fermentation and the storage of bulk wine, culminating in final adoption on December 15, 2005. As adopted, this innovative rule requires operators of wineries subject to the rule to reduce baseline fermentation emissions by 35 percent, which is beyond the minimum RACT requirements, or achieve equivalent reductions from alternative sources. Emissions reductions could come from any combination of the following sources: (a) control of fermentation emissions; (b) control of surplus emissions, either oxides of nitrogen (N0x) or VOC, from alternative sources; or (c) payment into a District-managed Air Quality Impact Mitigation Fund, the funds of which would be used by the District to obtain emissions reductions within in the Valley. This rule is the only one of its kind in the United States. During its review of Rule 4694, EPA determined that there is likely no RACT for controlling emissions from wine fermentation. Also, the alternative equivalent reduction requirements would not be federally enforceable and should not be included in the SIP. However, EPA does acknowledge the viability of controlling VOC emissions from the bulk storage of wine. As such, EPA indicated that they would likely issue a limited approval/disapproval of Rule 4694 as originally submitted. Through this SIP submittal amendment for Rule 4694, the District will request EPA action on the portions of the rule that meet EPA requirements for federal enforceability and for which there are RACT. Although the wine fermentation provisions of Rule 4694 will be withdrawn from EPA consideration, the entire, as-adopted Rule 4694 (including fermentation provisions) will remain in effect within the San Joaquin Valley. While the wine fermentation provisions will remain locally enforceable, only the wine storage provisions will be included in the SIP and federally enforceable.

2SJVUAPCD Governing Board

STATE IMPLEMENTATION PLAN (SIP) SUBMITTAL AMENDMENT FOR RULE 4694 (WINE FERMENTATION AND STORAGE TANKS) August 18, 2011 Once approved by the Governing Board, the District will submit the SIP amendment resolution and strike-out version of Rule 4694 to ARB as a SIP submittal amendment for subsequent submittal to EPA for approval. Environmental Impacts District staff does not expect the proposed SIP submittal amendment for Rule 4694 to change the meaning of the current rule nor the District's enforcement of all the previously adopted portions of Rule 4694. As such, the action requested will cause no direct physical change in the environment, nor a foreseeable indirect physical change in the environment. Therefore, adopting the SIP submittal amendment for Rule 4694 is not considered a "project" under CEQA section 21065 and an environmental impact analysis is not required. Public Review Process The District published notice of the public hearing for the proposed SIP submittal amendment in general circulation newspapers in each of the eight Valley counties. The District also posted the public notice and copy of the strikeout version of Rule 4694 on the District Website. The public notice solicited written comments, and identified the name and telephone numbers of District staff for additional information and comment response. The District received no public comments regarding the SIP submittal amendment to Rule 4694. FISCAL IMPACT: District staff expects no fiscal impact to the District resulting from this action.

Attachments: Attachment A: Resolution for State Implementation Plan SIP Submittal Amendment for Rule 4694 (Wine Fermentation and Storage Tanks (4 pages) Attachment B: Strike-out Version of Rule 4694 (18 pages) 3SJVUAPCD Governing Board

STATE IMPLEMENTATION PLAN (SIP) SUBMITTAL AMENDMENT FOR RULE 4694 (WINE FERMENTATION AND STORAGE TANKS) August 18, 2011 San Joaquin Valley Unified Air Pollution Control District Meeting of the Governing Board August 18,2011



### STATE IMPLEMENTATION PLAN (SIP) SUBMITTAL AMENDMENT FOR RULE 4694 (WINE FERMENTATION AND STORAGE TANKS)

Attachment A: Resolution for SIP Submittal Amendment for Rule 4694 (4 Pages)SJVUAPCD Governing Board

STATE IMPLEMENTATION PLAN (SIP) SUBMITTAL AMENDMENT FOR RULE 4694 (WINE FERMENTATION AND STORAGE TANKS) August 18, 2011 San Joaquin Valley Unified Air Pollution Control District Meeting of the Governing Board August 18, 2011



### STATE IMPLEMENTATION PLAN (SIP) SUBMITTAL AMENDMENT FOR RULE 4694 (WINE FERMENTATION AND STORAGE TANKS)

Attachment B: Strike-out Version of Rule 4694

(18 Pages)from the fermentation and bulk storage of wine s atRie-HORS-FFE*19

3.3.2 or Section 3.3.3.

he BFE sF EH-143 RULE 4694 WINE FERMENTATION AND STORAGE TANKS (Adopted December 15,

2005) 1.0 Purpose The purpose of this rule is to reduce emissions of volatile organic compounds (VOC)

2.0 Applicability This rule applies to any winery fermenting-wine-and/of storing wine in bulk containers. 3.0 Definitions 3.1 Air Pollution Control Officer (APC0): as defined in Rule 1020 (Definitions). 3.2 Air Resources Board (ARB or CARB) as defined in Rule 1020 (Definitions).



# y UFE BFE CY Where, BFE

— Baseline Fermentation Emissions

for-a-given-Baseline-Peried CV — The number of consecutive years used to establish the

BFE for a given Baseline Period
data,

SJVUAPCD 4694 - 1 12/15/2005DRIED*

3.8 Certified Emissions Reductions (CER): the reduction of VOC or NOx
APCO. 3.9 Combined Capture and Control Efficiency (CCCE): the percent reduction in DO DV fl as follows: 

### CCCE

— 

### %CSE X %CDE Where 7 

### CCCE

— Combined Capture and Control Efficiency 

### %CSE

— Capture System Efficiency, as established in the Permit To

Operate 

### %CDE

— Control Device Efficiency as established in the Permit To

Operate

SJVUAPCD 4694 - 2 12/15/2005device.

degrees Brix, or less.

FER — (Q

s x EF) 1 ton x CCCE 1,000 gal x 2,000 lb Where, FER — Fermentation Emission Reduction

Volume of must, in gallons, fermcntcd into red wine or white Emissions Factor for the type of wine being fermented in the white wine CCCE — Combined Capture and Contfel Efficiency of the VOC emissions

eentfel-s ystefn
3.18 Gas Leak: a reading in excess of 1,000 ppmv, above background, measured on a portable hydrocarbon detection instrument that is calibrated with methane. 3.19 Gas-Tight: a condition without a gas leak. EF

4694 - 3 12/15/2005 SIVUAPCDa_12 a LLTI17111.7

Where, pis-Reck] 3.20 Higher Heating Value (hhv): the total heat liberated per mass of fuel burned
standard conditions. 3.21 Must: any unfermented juice or mixture of juice, pulp, skins, and seeds prepared from grapes or other fruit. Must fermented to produce white wines is considered to be juice. Must fermented to produce red wines is considered to be a mixture of juice and solids, such as pulp, skins, and seeds. 3.22 Operator: includes but is not limited to any person who leases, supervises, or operates equipment, in addition to the normal meaning of ownership. 3.23 Potential To Emit: as defined in District Rule 2201 (New and Modified

3.25 Required Annual Emissions Reductions (RAER): the sum of all emission
follows: RAER — 

### E

FER + 

### E CER + 

### E DOER

+-Re& dufing-the-calendar-year otainea Dv [El

year

SJVUAPCD 4694 - 4 12/15/20053.27 Storage Tank: any container having an internal volume greater than 250 gallons, used to hold wine.
air quality plan. 3.29 Tank: any vessel, with a volume greater than 250 gallons, used as-a-fefraenter of-as a storage tank. 3.30 Time Of Use: the date on which an emission reduction is received by the

l

_ a

_ winept , s

__ Thft Bmehanee-Derner

ealeulated-as-fellews+ UFE — (Qred gal/yr x 6.2 1b)+(Qwnite gal/yr x 2.5 lb) x 1 ton 2,000 lb Where, UFE

— Uncontrolled Fermentation Emissions

— • • . - . - - • : : . - calendar year calendar year 3.32 US EPA: the United States Environmental Protection Agency. 3.33 Volatile Organic Compound (VOC): as defined in Rule 1020 (Definitions).

3.35 Wine: the liquid product obtained from fermented must. 3.36 Winery: a facility used to produce and/or store wine. 1,000 gal

1=1

SJVUAPCD 4694 - 5 12/15/20054.0 Exemptions

4.2 Section 5.2 shall not apply to storage tanks constructed primarily of concrete or wood. 5.0 Requirements 5.1 Fermentation Tanks DPeFE ERAE (BFE). 5.2 Storage Tanks Operators of any wine storage tank having an internal volume equal to or greater than 5,000 gallons shall comply with all of the following requirements when storing wine: 5.2.1 The tank shall be equipped and operated with a pressure-vacuum relief valve meeting all of the following requirements: 5.2.1.1 The pressure-vacuum relief valve shall operate within 10% of

the maximum allowable working pressure of the tank, 5.2.1.2 The pressure-vacuum relief valve shall operate in accordance

with the manufacturer's instructions, and 5.2.1.3 The pressure-vacuum relief valve shall be permanently

labeled with the operating pressure settings. 5.2.1.4 The pressure-vacuum relief valve and storage tank shall

remain in a gas-tight condition except when the operatingpressure of the tank exceeds the valve set pressure. A gastight condition shall be determined by measuring the gas leak in accordance with the procedures in EPA Method 21.

4694 - 6 12/15/2005 SJVUAPCD5.2.2 The temperature of the stored wine shall be maintained at or below 75° Fahrenheit. 5.2.2.1 Temperature of the stored wine shall be determined and

recorded at least once per week. 5.2.2.2 For each batch of wine, operators shall achieve the storage

temperature of 75°F or less within 60 days after completing fermentation. 6.0 Administrative Requirements 6.1 Three year Compliance Plan By no later than December 1, 2006, and every three years thereafter, each
period. The Three year Compliance Plan shall include the following information:

N-afrle-af1G-aEWITE

options: 6.1.5.1 Fermentation Emission Reduction (FER): Reductions of

SJVUAPCD 4694 - 7 12/15/2005aFREIHE LIGE

- Volume of fling7 in gallons, following information: 6.1.5.1.1 Calculation of FER for each controlled

using-the-fellowing÷

(Q x EF) 1 ton FER- x CCCE 1,000 gal 2,000 lb Where,

mitec

in-the-eontfelled-tank EF - Emissions Factor for the type of wine

tank. EF equals 6.2 lb for red wine, and CCCE - Combined Capture and Control

Efficiency of the VOC emissions control system 6.1.5.1.2 Reductions in annual emissions from wine

fermentation resulting from changes in E4

- 1;

- 14 rouu or result in CER.

6.1.5.2.1 CER shall have an emissions reduction duration

equal to the approved life of the emission reduction activity, provided that the CER is

SJVUAPCD 4694 - 8 12/15/2005Ed' Fief-HEM EtHOW - Hig 6.1.5.2.2 An emission reduction activity that loses CER

6.1.5.2.3 For each CER source the Three Year

information: 6.1.5.2.3.1 Details of the CER to be

: • -4, ' • • • • date and duration of the CER; emissions reductions to be achieved per unit of
CER; and a plan for monitoring

EtEl-E 6.1.5.2.3.2 The Permit To Operate number

for permitted sources of CER. The CER shall be made Bfeeallie-aS-One-ef-mer-e-RE conditions that establish the

6.1.5.2.3.3 • .

permitted sources of CER. This rule is part of the San Joaquin

the Federal Clean Air Act, 42 U.S.C. 7604. The CER shall be made enforceable by a legally binding contract between the operator of the winery, the and the District. All contracts

SJVUAPCD 4694 - 9 12/15/2005executed to comply with the provisions of this rule shall

monitoring

6.1.5.2.3.4 If the emission source operates

exclusively on the Winery Dr.rn;va a ratio of 1.0 ton CER per 1.0 ton
6.1.5.2.3.5 If the emission source is not

operated exclusively on the Winery Premises during the aFF11+1-1-afiee-DeR043 be offset at a ratio of 1.2 ton CER emissions.

following information: 6.1.5.3.1 The amount of requested DOER. DOER shall be

calculated-as-follows+ DOER — RAER - 

### E CER - 

### E FER Where, DOER — The amount of District Obtained

Emission4?cedoetions, RAER — 35% of the operator's Baseline

4694 - 10 12/15/2005 SJVUAPCDFlee Z-CER — Sum 

### of all CER to 

### be obtained by

the operator. IFER

— Sum of all 

### FER to be achieved by

the operator. 

### 6.1.5.3.2 The payment amount for 

### DOER shall be an

obtaining emission reductions having an



### 6.1.5.3.3 Payment 

### shall calculated as follows:

IOIMF= DOER Where, AQIMF

— 

### Air Quality Impact Mitigation

Fund payment. DOER

— District Obtained Emissions

Reductions. FR

— 

### Fund Rate. 

### As of January 

### 1,

at 

### $11,778 per ton. AF

— District's administrative fee. 

### As

of January 

### 1, 2006, the

sianiisneu afiffti-E 

### 1.01. 6.1.5.3.1 Beginning January 

### 1, 2007, the 

### Fund Rate and

the first year 

### in the 

### applicable compliance period. For the Three Year -Compliance 

### Plan
than March 

### 1, 2007.

SJVUAPCD 4694 - 11 12/15/2005

### yeaf-of-theit-geneFation,

6.2 

### Three Year Compliance Plan 

### Verification DO7and-e Boer-a+e shall 

### submit to the District a Three Year Compliance Plan 

### Verification that

conditions,

at-NOIMF-navineil

-Plan-14enicn9

SJVUAPCD 

### 4694 - 12 12/15/2005prior calendar



### 6.3.6 If the 

### UFE is less than or equal to the 

### BFE, the operator shall
the demonstration.



### CER or 

### DOER.

6.4 Monitoring and Recordkeeping Commencing January 1, 2007, the following records shall be maintained, retained on-site for a minimum of five years, and made available to the APCO upon request:

6.4.1.1 Total gallons 

### of must fermented,

SJVUAPCD 4694 - 13 12/15/2005DUE FEH3ii ae_12_a

eLL EI-€ an-Redt 6.4.2 For each storage tank, operators shall record the following information on a weekly basis: 6.4.2.1 Total gallons of wine contained in the tank, and 6.4.2.2 Maximum temperature of the stored wine. 4neratc demonstrate compliance.

program. The APCO may adjust thc cost of reductions according to the following process:

6.5.1.1 The cost effectiveness of projects funded to date; 6.5.1.2 The rule effectiveness of achieving the required emission

recluetions-te-date+-and real.]

kifiefl-al-leagt-ene-M119 ROE

SJVUAPCD 4694 - 14 12/15/20056.6 

### Test Methods
prohibitory rule.

APCO, 

### ARB, and US



### EPA. 6.6.2.1 VOC 

### Control 6.6.2.1.1 The control efficiency of any VOC 

### destruction
2.5a-may-be-used-.- 6.6.2.1.2 US EPA 

### Method 18 

### may be 

### used in lieu of US EPA

VOC 

### concentrations are neither under or over reported. 6.6.2.2 NOx 

### Control 6.6.2.2.1 Fuel hhv shall be 

### certified by 

### a third 

### party fuel 

### supplier-ef-determined-by 6.6.2.2.1.1 ASTM D 210 8-7 

### or D 23-82 88 

### for

tiquid-hydfeeafbon4uelst 6.6.2.2.1.2 ASTM D 1826 88 

### or D 1915 81 in I D 3588 89 fa 

### gaseous fuels. 6.6.2.3 

### Oxides of 

### nitrogen (ppmv) US EPA 

### Method 7.E, 

### or ARB



### Method 100.

SJVUAPCD 

### 4694 - 15 12/15/2005[3-719 

### N-E4 6.6.2.4 Carbon monoxide (ppmv) US 

### EPA Method 10, 

### or ARB 

### Motile:14007 6.6.2.5 Stack gas oxygen US EPA Method 3 

### or 3A, or ARB Method 100.
• • I • • z : • • 

### 6.6.2.7 Stack gas velocities US EPA Method 2. 6.6.2.8 Stack gas moisture content US EPA Method 4. 6.7 

### Compliance Testing Emera
APCO, ARB, 

### and US EPA.



### 4694 - 16 12/15/2005 SJVUAPCD7.0 Compliance Schedule

Initial Compliance Subsequent Requirement Reference Date Compliance-Dates Submit-Three-yeaf Deeember--12006 Every-thfee-years Compliance-Plan-to Section 6.1 District Commencing Gontinuouslyas January 1, 2007 monitoring and Section 6.4 al3f ■ feffiate fecor-diteeping

Submit-AQIMF-& Administrative fees Section Match-I T -2007 Evety-three-years feEDGER-putsuant-to 6.1.5.3.4 the Three Year Compliance Plan Submit-Three-yeat July 1, 2007 Every three years Compliance Plan Section 6.2 Verification Submit Annual March-1 7 -2008 Annually Compliance PlanSection 6.3 Demonstration Annually, as Provide additional May-1-,-2008 Section 6.3.5.2 aPfwelffiate RAER-as-r-equifed

4694 - 17 12/15/2005 SJVUAPCDThis page intentionally blank

4694 - 18 12/15/2005 SJVUAPCD