Addendum to the December 2010 Statement of Principles Regarding the Approach to State

Implementation Plan Creditability of Agricultural Equipment Replacement Incentive

Programs Implemented by the USDA Natural Resources Conservation Service and the San

Joaquin Valley Air Pollution Control District

March 2014
Introduction

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 report does not include any funded project that NRCS has

found to be in violation of its EQIP contract; and (3) the information provided in the

annual report is true and accurate to the best of his/her knowledge.

2. Upon request by EPA or the District, the NRCS will provide representative samples of

the compliance-related documentation used to compile the annual report described in

paragraph #1 above. NRCS will omit the names of any individual owners, operators, or

producers before submitting these documents to EPA and/or the District. EPA may use

these documents to assess the District’s compliance with SIP-approved emission

reduction commitments.

Signed for EPA By, Signed for SJVAPCD By,

Debor i Jordan Sc a Sadredin

Director, Air Division, Region IX Executive Director/Air Pollution Control Officer

Date: Date:__________

Signed for USDA, NRCS By, Signed for ARB By,

los&ez rdor

State Conservationist for California Executive Officer

Date:

Date: