Addendum to the December2010 StatementofPrinciples Regarding the Approach to State Implementation Plan Creditability ofAgricultural EquipmentReplacementIncentive Programs Implemented by theUSDANatural Resources Conservation Service and the San Joaquin Valley Air Pollution Control District March 2014Introduction In December 2010, the USDA Natural Resources Conservation Service (NRCS), the U.S. Environmental Protection Agency (EPA), the California Air Resources Board (ARB) and the San Joaquin Valley Air Pollution Control District (District) signed a Statement of Principles pledging to work collaboratively to develop a mechanism to provide State Implementation Plan (SIP) credit for emissions reductions from agricultural equipment replacement incentive programs that meet Clean Air Act (CAA) requirements. In July 2012. NRCS and EPA signed an additional Statement of Principles reaffirming the agencies’ agreement to work together on a mechanism consistent with the CAA to quantify emission reductions from farm equipment achieved through voluntary incentive programs at the state/local level that could be used for SIP credit. Subsequently, the District worked with NRCS, EPA and ARB to develop and adopt District Rule 9610, which contains the District’s procedures and criteria for development of SIPs that rely on incentive programs implemented by the District and NRCS in the San Joaquin Valley, including the Environmental Quality Incentive Program (EQIP) implemented by NRCS. ARB adopted Rule 9610 on June 20, 2013 and submitted it to EPA on June 26, 2013 as a revision to the California SIP.

Under the CAA as interpreted in EPA guidance, incentive programs may qualify for credit in a SIP if the resulting emission reductions are “surplus, quantifiable, enihrceahle and permanent” and satisfy all other CAA criteria for SIP approval. Section 1619 of the Farm Bill prohibits NRCS from disclosing “information provided by an agricultural producer or owner of agricultural land concerning the agricultural operation, farming or conservation practices, or the land itself, in order to participate in programs of the Department” or related “geospatial information,” except in accordance with limitations specified in subsection 1619(h)(4). 7 U.S.C. § 8791. Purpose of this Addendum The purpose of this Addendum is to identify information that NRCS will make available to EPA and the District, consistent with NRCS’s statutory responsibilities under Section 1619 of the Farm Bill, to ensure that both EPA and the District can carry out their respective implementation responsibilities under the CAA and Rule 9610. Addendum to the Statement of Principles 1. Consistent with the implementation principles identified in the December 2010 Statement of Principles and the July 2012 Statement of Principles, the NRCS will provide to EPA and the District, no later than March 31 of each year, an annual report that includes: a. Information regarding emission reductions achieved by individual EQIP projects, including unique project identification numbers, the county in which each project is

located, and verification that each ‘old” (replaced) engine has been destroyed. b. Certification by the NRCS California State Conservationist that: (1) emission reductions for each EQIP project identilied in the annual report were calculated in accordance with the applicable NRCS conservation practice standards and related

### guidelines; (2) the annual reportdoes not

### include anyfundedprojectthatNRCS has foundto be inviolationofits EQIP contract; and (3) the informationprovidedinthe annual reportis true and accuratetothebestofhis/herknowledge. 2. UponrequestbyEPA or

### the District, theNRCS will providerepresentative samples of the compliance-relateddocumentationusedto compilethe annualreportdescribed in 

### paragraph#1 above. NRCS will omitthenames ofany 

### individual owners, operators, or producers before submittingthesedocuments to EPA and/orthe District. EPAmayuse these documentsto assess the District’s compliance with SIP-approvedemission reduction commitments. Signed forEPA By, Signed for SJVAPCD By, 

### Debor i

### Jordan Sc a Sadredin Director, Air

### Division, Region IX Executive Director/AirPollutionControl Officer Date: Date:__________ Signed forUSDA, NRCS By, Signed forARB By, 

### los&ez rdor State ConservationistforCalifornia Executive Officer Date: ______________

Date: ______________