## STAFF REPORT

Proposed New Rule :

Rule 434

— Emission s Statement s

Prop osed for Adoption Hearing: April 2 5 , 201 3

Date of Public Release: March 2 6 , 201 3

Schedule of Workshop s

**•** Date of Public Workshop on Proposed Rule:

**•** 3:00 p.m., Mon day

, April 8 , 2013

, District Office, 629 Entler Avenue, Suite 15

, Chico, CA Schedule of Hearing s

**•** Date of Board Adoption Hearing:

**•** 10:00 a.m., Thursday, April 2 5 , 201 3 , Chico City Council Chambers, 421 Main Street, Chico, CASTAFF REPORT

Proposed New Rule :

Rule 434

— Emission s Statement s

Proposed for Adoption Hearing: April 25 , 2013

Oroville City Hall 1735 Montgomery Street

, Oroville , CA

Contents Page Executive Summary

...................................................... 3

1. Program Purpose

...................................................... 3

2. Applicability

....................................................... 3

3. Discussion

....................................................... 3

4. Requirements

....................................................... 4

5. Cost Impacts/Cost Effectiveness................................................ 4

6. Alternatives

............................... ........................ 4

7. Environmental Review

...................................................... 4

8. Required Findings

........................................................ 6

9. Attach ments

........................................................ 7

Attachment A Rule 434

—Emission s Statement s

Attachment B Notice of Public Workshop and Hearing

Attachment C Draft Resolution of AdoptionExecutive Summary

Proposed Rule 434 implements the requirements of the Clean Air Act (CAA) Section 182 (a)(3)(B)(i) which requires that states with areas designated as nonattainment for ozone require emissions data from sources of oxides of nitrogen and volatile organic compounds (VOCs) located in the nonattainment

areas.

Butte County Air Quality Management District ( District ) proposed Rule 4 34 will require owners and/or operators of stationary sources emitting NO X or VOC emissions to provide the District with an annual statement of actual emissions of these pollutants, certified by a responsible official of the company.

1. Purpose:

The purpose of the proposed new rule is to establish the requirements for the submittal of emission statements from specified stationary sources pursuant to the requirements of the 1990

a mendments to the Clean Air Act Section 182(a)(3)(B).

2. Applicability :

The requirements of the proposed new rule are applicable to every stationary source permitted by

the District which emit or may emit oxides of nitrogen or reactive organic compounds.

3. Discussion :

Rule 434 : Proposed Rule 434 applies to all official documents submitted to the District. All official documents shall contain a certification signed and dated by a responsible official of the company, which attests that the information contained in the submitted do cuments is accurate to

the best knowledge of the individual certifying the submission. The District currently requires certification consistent with the proposed rule on documents submitted, including, but not limited to: permit applications; response do cuments from the notices to comply and notices of non

compliance program; emissions statements; and submissions for variance s

.

Proposed Rule 434 also requires the owner or operator of a stationary source that emits or may emit oxides of nitrogen and VOC s to provide the APCO with a written statement showing the actual emissions of oxides of nitrogen and VOCs from that source, pursuant to the requirements

of the CAA Section 182(a)(3)(B)(i). At a minimum, the emissions statement shall be submitted as speci fied in the transaction format detailed in the CARB “California Emission Inventory Development and Reporting System.” The existing inventory program is consistent with the proposed rule, and no additional statements will be required as a result of the rul e adoption.4. Requir e ments:

The proposed rule requires the owner or operator of any stationary source that is subject to this rule to provide the District with a written emissions statement showing actual emissions or operational data allowing the District to estimate actual emissions from that source . Emissions calculations shall be based on emission factors approved by the Air Pollution Control Officer (APCO)

.
The emission statement shall be on a form or in a format specified by the APCO and sha ll contain emission data for the time period specified by the APCO. Emission statements shall be submitted annually.

The APCO may waive the requirements to any class or category of stationary sources which emit less than 25 tons per year of oxides of nitr oge n or reactive organic compounds if the District provides the California Air Resources Board with an emission inventory of sources emitting greater than 10 tons per year of nitrogen oxides or reactive organic compounds

.

All official documents submitted t o the District shall contain a certification signed and dated by a responsible official of the company attesting that the information contained in the submitted documents is accurate to the best knowledge of the individual certifying the submission. The se requirements apply to, but are not limited to, the emissions statements required in Section 3 of

this rule.

5. Impacts/Cost Effectiveness :

Proposed new Rule 434 will not have an adverse economic impact on the entities subject to the proposed rule. The District currently requests and collects emissions statements pursuant to reporting requirements. This rule formalizes the current procedure in rule format to meet the CAA requirement.

6. Alternatives :

The Governing Board may choose to:

a) Approve the r ules as proposed; b) Direct staff to modify the proposed amended and new rules after receiving public comments during the hearing; or c) Take no action.

7. Environmental Review a nd Compliance :

California Environmental Quality Act (CEQA): Applicants for stationary source permits under

District rule s are already required to obtain permits under the Clean Air Act. The proposed new rule requirements do not a ffect existing requirements but clarify applicability. There is no potential

for adverse environmenta l impacts with the adoption of this proposed rule.According to the above conclusion, Staff finds that the proposed rule is exempt from the California Environmental Quality Act (CEQA) because 1) it can be seen with certainty that there is no possibilit y that the activity in question may have a significant adverse effect on the environment (CEQA Guidelines §15061(b)(3)) and 2) it is an action by a regulatory agency for protection of the environment (Class 8 Categorical Exemption, CEQA Guidelines §15308).

Public Notice and Comment: District staff will hold a proposed rule workshop on April 8,
2013, after the official notice is published in a local paper prior to the public hearing. Notice of this workshop was posted on the District website

. Comments rece ived and District responses will be included as an attachment to this Staff Report.8

. Required Findings:

Findings required by Division 26 of the California Health and Safety Code requires local districts to comply with a rule adoption protocol as set forth in Section 40727 of the Code. This section has been revised through legislative mandate to contain six findings that the District must make when developing, amending, or repealing a rule or regulation. The se findings and their

definitions are include d in the following table :

FINDING DEFINITION REFERENCE Authority A District shall adopt Rules and regulations and do such acts as may be necessary or proper to execute the powers and duties granted to, and imposed upon, the District by this

division and other statutory provisions. California Health and Safety Code Division 26, Part 3, Sections 40000

and 40001

, 40702

, and 42300 et. seq.

, and Clean Air Act Section 182 are provisions of law that provide the District with the authority to adopt these proposed amended rules. Necessity The District has demonstrated that a need for the Rule, or for Rule amendment or repeal. The proposed new rule clarif ies existing requirements to assist sources comply with those requirements. Clarity The Rule is written or displayed so that its meaning can easily be understood by the persons directly affected by it. There is no indication that the proposed rule is written in such a manner that persons affected by the rule cannot easily understand it. Consistency This Rule i s in harmony with, and not in conflict with or contradictory to, existing statutes, court decisions, or State or federal regulations. The District has found that the proposed new rule is consistent with applicable statutory requirements

Non

Duplication The Rule does not impose the same requirements as an existing State or federal regulation, unless the District finds that the requirements are necessary and proper to execute the powers and duties granted to, and imposed upon, the District. The proposed am ended rule s do not duplicate State or federal requirements

but serve to fully inform affected sources of the existing requirements

and are necessary in order to execute the powers and duties imposed upon

the District.

Reference Any statute, court decision , or other provision of law that the district implements, interprets, or makes specific by adopting, amending, or repealing a regulation. California Health and Safety Code Division 26, Part 3, Sections 40000 and 40001, 40702, and 42300 ; Clean

Air Act amend ments of 1990 and related regulations.

9 .0 Attachments:

Attachment A Rule 434

—Emissions Statements

Attachment B Notice of Public Workshop and Hearing

Attachment C Draft Resolution of AdoptionAttachment A

Rule 434

— Emissions Statements

Rule 434

- Emission Statement ( Proposed for Adopt ion April 25

, 2013 )

RULE 434

1 PURPOSE : This rule establishes the requirements for the submittal from specified stationary sources in accordance with the requirements of the 1990 Clean Air Act [Section 182(a)(3)(B)].

2 APPLICABILITY: The requirements of this rule are applicable to any stationary source
which emits or may emit oxides of nitrogen or reactive organic compounds

.

3 REQUIREMENTS

3.1 The owner or operator of any stationary source that is subject to this rule shall
provide the Butte County Air Quality Management District (District) with a written
emission statement showing actual emissions or operational data allowing the

District to es timate actual emissions from that source . Emission calculations shall be
based on emission factors approved by the APCO

.

3.2 The emission statement shall be on a form or in a format specified by the Air
Pollution Control Officer (APCO) and shall contain emission data for the time
period specified by the APCO. Emission statements shall be submitted annually.

4 ADMINISTRATIVE REQUIREMENTS

4.1 The APCO may waive the requirements of Section 3 to any class or category of
stationary sources which emit less t han 25 tons per year of oxides of nitroge n or reactive organic compounds if the District provides the California Air Resources
Board with an emission inventory of sources emitting greater than 10 tons per year
of nitrogen oxides or reactive organic compounds

.

4.2 All official documents submitted to the District shall contain a certification signed
and dated by a responsible official of the company attesting that the information
contained in the submitted documents is accurate to the best knowledge o f the
individual certifying the submission. The requirements of this Section apply to, but
are not limited to, the emissions statements required in Section 3 of this rule.Attachment B Notice of Public Workshop and Hearing

NOTICE OF PUBLIC HEARING AND WORKSHOP

NOTICE IS HEREBY GIVEN that the Butte County Air Quality Management District (District) Governing Board will hold a public hearing to consider adoption of proposed new Rule 434

— Emissions Statements to establish emission reporting requirement s from specified stationary sources in accordance with the requirements of the 1990 Clean Air Act, Section 182(a)(3)(B).

The time, date, and location of the public workshop and hearing are given below:

Public Workshop: Monday, April 8 , 201 3 at 3 p.m., District Office, 629 Entler Avenue, Suite 15, Chico, CA

. Public Hearing to Consider Adoption : Thursday, April 2 5 , 201 3 at 10:00 a.m., City of

Oroville City Hall

, 1735 Montgomery Street, Oroville , CA

.

The Staff Report and proposed rules may be reviewed at the District office at the address below

or on the District website: www.bcaqmd.org . For additional information please contact Armen

Kamian at (530) 332

- 9400, ext. 10 8 . Written comments on the proposed new rul e must be submitted by April 16, 2013 to: Board Clerk, Butte County Air Quality Management District, 629 Entler Avenue, Suite 15, Chico, CA 95928.

DATED: March 2 6 , 2013

By: W. James Wagoner

AIR POLLUTION CON TROL OFFICERAttachment C Draft Resolution of Adoption

DRAFT RESOLUTION 201 3

- 04
BEFORE THE BOARD OF DIRECTORS OF

BUTTE COUNTY AIR QUALITY MANAGEMENT DISTRICT

STATE OF CALIFORNIA

Resolution 20 1 3

- 04 ...................................) Adopt Proposed Rule 434

............... ....... ...)

WHEREAS, the Butte County Air Quality Management District Governing Board obtains its authority to adopt, amend, or repeal rules and regulations from California Health and Safety Code Sections 40000,
40001, 40701, 40702 and federal Clean Air Act amendment s of 1990 ;

AND WHEREAS, the Butte County Air Quality Management District Governing Board ha s determined that the proposed rule is written such that the meaning can be understood by the persons directly affected by it (Health and Safety Code Section 40727(b)(3));

AND WHEREAS, the Butte County Air Quality Management District Governing Board has determined that the proposed rul e is in harmony with, and not in conflict with or contradictory to existing statutes, court decisions, or state or federal regulations (Health and Safety Code Section 40727(b)(4));

AND WHEREAS, the Butte County Air Quality Management District Governing Board has d etermined that the adoption of Rule 434

— Emissions Statements is necessary to clarify the requirements of the federal

Clean Air Act amendments of 1990 ;

AND WHEREAS, the Butte County Air Quality Management District Staff conducted a public workshop on April 8 , 201 3 to receive comments, and the Governing Board conducted a public hearing on April 2 5

, 201 3 to consider adoption of the proposed rule ;

THEREFORE, BE IT RESOLVED, that the Butte County Air Quality Management District Governing Board hereby adopts Rule 434

, as proposed in the attachments to the April 25, 2013 staff report.

On Motion of ______________, Seconded by _____________, the foregoing resolution is hereby PASSED AND ADOPTED BY THE Air Quality Management District Governing Board of Directors on this 25th day of April , 201 3 by the following:

AYES:

NOES:

ABSTAIN:

ABSENT:

_____________________________ ______ ____ W. James Wagoner, Air Pollution Control Officer Butte County Air Quality Management District I hereby attest that this is a true and correct copy of the action taken by the Butte County Air Quality Management District Board of Directors on April 25, 2013.

ATTEST:

______________________________________ Robyn Sousa , Clerk of the Governing Board