State of California 

AIR RESOURCES BOARD 

Report on Reductions Achieved from Incentive-Based 

Emissions Reduction Measures in the San Joaquin Valley 

Resolution 14-36 

October 24, 2014 

Agenda Item No.: 14-8-10 

WHEREAS, the Legislature in Health and Safety Code section 39602 has designated 

the State Air Resources Board (ARB or Board) as the air pollution control agency for all 

purposes set forth in federal law; 

WHEREAS, sections 39600 and 39601 of the Health and Safety Code authorize 

ARB to adopt standards, rules, and regulations and to do such acts as may be 

necessary for the proper execution of the powers and duties granted to and imposed 

upon the Board by law; 

WHEREAS, ARB is responsible for the preparation of the State Implementation Plan 

(SIP) for attaining and maintaining the national ambient air quality standards (NAAQS) 

as required by the federal Clean Air Act (Act) (42 U.S.C. section 7401 et seq.), and to 

this end is directed by Health and Safety Code section 39602 to coordinate the activities 

of aU local and regional air pollution control and air quality management districts 

(districts) necessary to comply with the Act; 

WHEREAS, section 39602 of the Health and Safety Code also provides that the SIP 

shall include only those provisions necessary to meet the requirements of the Act; 

WHEREAS, sections 39515 and 39516 of the Health and Safety Code provide that any 

power, duty, purpose, function, or jurisdiction of the Board may be delegated to the 

Board's Executive Officer as the Board deems appropriate; 

WHEREAS, ARB has primary responsibility for the control of air pollution from vehicular 

sources, including motor vehicle fuels, as specified in sections 39002, 39500, and part 5 

(commencing with section 43000) of the Health and Safety Code, and for ensuring that 

the districts meet their responsibilities under the Act pursuant to sections 39002, 39500, 

39602, 40469, and 41650 of the Health and Safety Code; 

WHEREAS, the districts have primary responsibility for the control of air pollution from 

non-vehicular sources and for adopting control measures, rules, and regulations to 

attain the NAAQS within their boundaries pursuant to sections 39002, 40000, 40001, 

40701,40702, and 41650 of the Health and Safety Code; 
Resolution 14-36 2 

WHEREAS, the San Joaquin Valley Air Pollution Control District (District) was 

established, pursuant to sections 40000 and 40100 of the Health and Safety Code, as 

the air pollution control district responsible for carrying out these responsibilities in the 

San Joaquin Valley Air Basin; 

WHEREAS, the San Joaquin Valley Air Basin includes Fresno, Kings, Madera, Merced, 

San Joaquin, Stanislaus, Tulare, and western Kern Counties; 

WHEREAS, in July 1997, United States Environmental Protection Agency (U.S. EPA) 

promulgated an annual and 24-hour NAAQS for fine particulate matter (PM2.5) of 

15 1Jg/m3 and 65 1Jglm3 respectively; 

WHEREAS, on April 5, 2005, U.S. EPA designated the San Joaquin Valley Air Basin 

(SJV) as nonattainment for the 15 1Jglm3 annual and 65 1Jg/m3 24-hour PM2.5 

standards (PM2.5 standards); 

WHEREAS, in 2008, the District and ARB adopted the SJV 2008 PM2.5 Plan 

(SJV PM2.5 Plan) to fulfill the planning requirements of the Act for the PM2.5 standards 

for the SJV PM2.5 nonattainment area and transmitted it to U.S. EPA as a SIP revision; 

WHEREAS, the SJV PM2.5 Plan relies on emission reductions from already adopted 

control measures and reductions from new control measures so SJV can reach 

attainment in 2014; 

WHEREAS, the reductions from new control measures in the SJV PM2.5 Plan consist 

of two components: a commitment to propose new control measures by specific dates, 

and an aggregate emission reduction commitment in 2014; 

WHEREAS, the SJV PM2.5 Plan specifies the commitment to achieve the aggregate 

emission reductions could be met by new regulations or alternative emission reductions 

measures including emission reductions from incentive programs; 

WHEREAS, on April 28, 2011, the Board adopted revisions to the SJV PM2.5 Plan to 

reflect the benefits of recently adopted SIP measures; 

WHEREAS, on November 9, 2011, U.S. EPA approved the amended SJV PM2.5 Plan, 

including the ARB State Strategy commitment; 

WHEREAS, incentives programs achieve emission reductions beyond those required by 

regulations by providing grants to private and public entities for the introduction of 

cleaner technologies earlier than what is required by regulations alone; 

WHEREAS, in order for emission reductions from incentive programs to be credited 

toward fulfilling the ARB aggregate emissions SIP commitment, U.S. EPA guidelines 

specify that the emission reductions must be enforceable, quantifiable, surplus, and 

permanent; 
Resolution 14-36 3 

WHEREAS, since 1999, the Carl Moyer Memorial Air Quality Standards Attainment 

Program (Moyer Program) has provided over $900 million to replace over 41 ,000 high 

polluting engines throughout the State cumulatively reducing about 150,000 tons of 

ozone precursor and 6300 tons of particulate matter emissions; 

. WHEREAS, since 2008, Proposition 1 B: Goods Movement Emission Reduction 

Program (Prop 1 B) has awarded over $718 million to air districts and seaports to reduce 

air pollution emissions and health risk from freight movement along California trade 

corridors; 

WHEREAS, the Moyer Program and Prop 1 B funding guidelines are developed through 

a public process that include workshops and Board action that allow for stakeholder 

input; 

WHEREAS, ARB prepared the Report on Reductions Achieved from Incentive-Based 

Emission Reduction Measures in the San Joaquin Valley (Report) to demonstrate that 

emission reductions from the Moyer Program and Prop 1 B are SIP creditable; 

WHEREAS, the Report documents that the incentive-based emission reduction 

measures from the Moyer Program and Prop 1 B satisfy the U.S. EPA requirement that 

the reductions be enforceable by ensuring that actions required of project grantees are 

independently verifiable, program violations are defined, those liable can be identified, 

and penalties or corrective action may occur; 

WHEREAS, the Report documents that the incentive-based emission reduction 

measures from Moyer Program and Prop 1 B satisfy the U.S. EPA requirement that the 

reductions be quantifiable by providing publicly available emission factors, calculation 

methods and project activity data so that project emission reductions can be replicated 

in a reliable manner; 

WHEREAS, the Report documents that the incentive-based emission reduction 

measures from the Moyer Program and Prop 1 B and satisfy the U.S. EPA requirement 

that the reductions be surplus by showing that the emission reductions are not required 

by or assumed in a SIP-related program, any State/local rule, consent decree, or federal 

rule designed to reduce criteria pollutant or precursor emissions or relied upon for 

SJV PM2.5 Plan contingency; 

WHEREAS, the Report documents that the incentive-based emission reduction 

measures from the Moyer Program and Prop 1 B satisfy the U.S. EPA requirement that 

the reductions be permanent by showing that the project grantee is required to operate 

and maintain the project, contract provisions allow the public to evaluate the duration of 

emission to ensure that duration adequately covers the period for which the reductions 

are relied upon in the SIP and for vehicle or engine replacement projects, the replaced 

vehicle or equipment is destroyed; 
Resolution 14-3.6 4 

WHEREAS, section 11 0(1) of the Act and title 40 Code of Federal Regulations (CFR) 

section 51.102 requires that one or more public hearings, preceded by at least 30-day 

notice and opportunity for public review, must be conducted prior to the adoption and 

submittal to U.S. EPA of any SIP revision; 

WHEREAS, the Report was made available on September 22, 2014 for public review at 

least 30 days prior to the hearing date; 

WHEREAS, the Report: 

1. Quantifies incentive-based emission reductions from 832 Moyer Program 

off-road equipment repower, replacement, and retrofit projects according to 2005, 

2008, 2011 Carl Moyer program guidelines, and 1454 Prop 1 B on-road vehicle 

replacement projects under 2008 and 2010 Prop 1B program guidelines that 

provide emission reductions throughout the 2014 attainment year in the SJV; 

2. Demonstrates that the reductions from the programs meet U.S. EPA 

requirements for credit toward fulfilling the State Strategy aggregate emission 

reductions commitment in the SJV PM2.5 Plan; and 

3. Documents that ARB and the District have implemented incentive-based 

emission reduction measures that will provide reductions (7.8 tpd NOx and 

0.2 tpd PM2.5) towards the SJV PM2.5 Plan 2014 aggregate emission reduction 

commitment; 

WHEREAS, in consideration of the Report, the Board finds that: 

1. The incentive-based emission reduction measures provide 2014 emission 

reductions of 7.8 tpd NOx and 0.2 tpd PM2.5 that are enforceable, quantifiable, 

surplus and permanent as these terms are used in applicable U.S. EPA 

guidance; · 

2. The Report provides the necessary documentation for U.S. EPA to approve it as 

an amendment to the California SIP; and 

3. The Report meets the applicable requirements established by the Act and 

U.S. EPA regulations. 

NOW, THEREFORE, BE IT RESOLVED that the Board hereby approves the Report on 

Incentive-based Emission Reduction Measures in the San Joaquin Valley as a revision 

to the California SIP, and directs the Executive Officer to submit the Report and other 

appropriate supporting documentation to U.S. EPA for inclusion in SIP as the 

mechanism to allow California to receive SIP credit for reduction achieved through 

incentive-based emission reduction measures. 
Resolution 14-36 5 

BE IT FURTHER RESOLVED that the Board directs the Executive Officer to work with 

U.S. EPA and take appropriate action to resolve any completeness or approvability 

issues that may arise regarding the SIP submission. 

BE IT FURTHER RESOLVED that the Board authorizes the Executive Officer to include 

in the SIP submittal any technical corrections, clarifications, or additions that may be 

necessary to secure U.S. EPA approval. 

BE IT FURTHER RESOLVED that the Board hereby certifies pursuant to 

40 CFR, section 51.102, that the Report was approved after notice and public hearing 

as required by 40 CFR, section 51.102. 

I hereby certify that the above is a true 

and correct copy of Resolution 14-36 as 

adopted by the Air Resources Board.