From: Todd DeYoung [mailto:Todd.DeYoung@valleyair.org] 

Sent: Tuesday, June 11, 2013 2:04 PM 

To: Steckel, Andrew 

Cc: samir.sheikh@valleyair.org; ted.strauss@ca.usda.gov

Subject: FW: SJV Rule 9610 integrity element support 05-08-2013 -6-11-13 comments.docx 

Importance: High 

Andy, 

It was a pleasure meeting you yesterday. Here is the NRCS integrity principles 

document from Ted Strauss that was discussed yesterday. Please let Ted, Samir or me 

know if you need anything else. 

Thanks 

Todd DeYoung 
Unofficial Working Draft – Do Not Cite or Distribute – For Discussion Purposes Only 

May 8, 2013 

Below are some preliminary staff suggestions for how to address EPA’s programmatic “integrity 

elements” in your incentive program quantification guidelines, consistent with EPA policy.

1

It 

would be very helpful if CARB/SJVAPCD would provide citations or demonstrations that each 

of these is fulfilled for each incentive program guideline listed in SJVAPCD Rule 9610 Section 

3.1 (i.e., separate demonstrations for Moyer on-road heavy-duty vehicle, Moyer emergency 

vehicles, etc.) 

Surplus: Emission reductions used to meet air quality attainment requirements are surplus if 

they are not otherwise relied on in air quality-related programs related to the SIP, SIP-related 

requirements, other State air quality programs adopted but not in the SIP, a consent decree, or 

Federal rules that focus on reducing criteria pollutants or their precursors. In the event that the 

EIPs programmatic emission reductions are relied on to meet air quality-related program 

requirements, the reductions are no longer surplus. 

· Requirement that emission reductions generated by incentive programs are not required 

by other regulation (e.g., Moyer Guidelines Chapter 2, Project Criteria A). 

Under the Food Conservation and Energy Act of 2008, the USDA Secretary provides eligible 

producers with program support to address serious air quality concerns from agricultural 

operations and help meet regulatory requirements through the Environmental Quality 

Incentives Program (EQIP). The National Air Quality Initiative (NAQI, once referred to as 

“CIG-b”) is a voluntary incentive program with the primary goal to achieve and maintain the 

health-based National Ambient Air Quality Standards (NAAQS) within designated nonattainment areas of California. Financial assistance is targeted to counties that have been 

identified as having significant air quality resource concerns by being designated as nonattainment for Ozone and/or Particulate Matter (PM10 / PM2.5). These areas experience air 

pollution levels that persistently exceed the National Ambient Air Quality Standards 

established by the Clean Air Act.

http://www.ca.nrcs.usda.gov/programs/eqip/2013/2013_air_quality_initiative.html

Under the NAQI, page 3 of the CA-NRCS program guidelines specifies that SIP 

creditable emissions reductions are “achieved from contracts or parts of contracts funded 

under the air quality initiative [that] are not required by any federal, state, or local 

regulation, settlement agreement, mitigation requirement, or other legal mandate.” A rule 

or regulation does not currently exist for off-road mobile agricultural equipment, so the 

emission reductions resulting from replacing existing mobile off-road agricultural 

 

1 As explained in several EPA policy documents, states may rely upon emission reductions resulting from an 

economic incentive program (EIP) or other incentive/voluntary measures to satisfy Clean Air Act requirements only 

where the program/measure ensures, among other things, that the resulting emission reductions are surplus, 

quantifiable, enforceable and permanent as EPA has defined those terms. See, e.g., “Improving Air Quality with 

Economic Incentive Programs,” U.S. EPA, Office of Air and Radiation, January 2001 (EPA-452/R-01-001) (“2001 

EIP”). at Section 4.1; see also “Guidance on Incorporating Voluntary Mobile Source Emission Reduction Programs 

in State Implementation Plans (SIPs),” October 24, 1997; “Incorporating Voluntary Stationary Source Emission 

Reduction Programs Into State Implementation Plans – Final Policy,” January 19, 2001; “Incorporating Emerging 

and Voluntary Measures in a State Implementation Plan (SIP),” September 2004; and “Guidance on Incorporating 

Bundled Measures in a State Implementation Plan,” August 16, 2005. 
Unofficial Working Draft – Do Not Cite or Distribute – For Discussion Purposes Only 

May 8, 2013 

engines funded under the NAQI per Conservation Practice Standard (CPS) 372 - 

Combustion Systems Improvement are surplus. The FY 2013 National Air Quality 

Initiative Programs Description is posted on-line at: ftp://ftpfc.sc.egov.usda.gov/CA/programs/EQIP/2013/2013_EQIP_Air_Quality_Initiative_ProgD

esc.pdf. The 2012 CA-NRCS program guidelines are posted on-line at: ftp://ftpfc.sc.egov.usda.gov/CA/programs/AQI/2012_Combustion_Systems_Improvement_Polic

y_and_Procedures.pdf

· Protocols for quantifying maximum project life and maximum emission reductions which 

account for upcoming regulatory deadlines for a given source category (e.g., Moyer 

Guidelines Chapter 2, Project Criteria B and MM). 

The methodologies from the Carl Moyer Program are the basis for components included 

in CPS-372 and its supporting documents for the NAQI, including the CA-NRCS 

program guidelines. The District provided technical assistance to CA-NRCS in 

developing their calculation methodologies, which are consistent with the Carl Moyer 

Program. The NRCS Field Office Technical Guide places a ten-year lifespan for projects 

implemented under CPS 372 – Combustion System Improvement, which is also 

consistent with the Carl Moyer program. A conservation practice lifespan is the 

minimum time (in years) the implemented practice is expected to be fully functional for 

its intended purpose (NRCS General Manual, Title 450, Part 401.15) 

http://directives.sc.egov.usda.gov/viewerFS.aspx?hid=19430. The Air Resources Board 

has not developed a rule or regulation that currently applies to mobile off-road 

agricultural equipment, so the emission reductions resulting from mobile engine projects 

under CPS 372 are surplus. A list of California NRCS practice standard life-spans are 

posted on-line at: 

http://efotg.sc.egov.usda.gov/references/public/CA/List_of_Practices_Lifespans_2012-

12_CA_Numeric.xlsx

· Assurance that new/upgraded equipment is not already accounted for in future-year 

inventories underlying a SIP attainment demonstration by natural fleet turnover, finite 

equipment life or incentives, or explicit quantification procedures that preclude double 

counting (e.g., Moyer Guidelines, where?). 

CA-NRCS is implementing the NAQI to replace old, in-use, uncontrolled diesel-powered 

mobile off-road agricultural equipment earlier than through normal attrition. The existing 

equipment is replaced with the latest emissions EPA Tier-certified diesel-powered 

agricultural equipment currently available, per CPS-372. The existing engine and 

equipment are then destroyed by shearing, shredding or crushing at an approved 

California disposal location where the scrap metal may be recycled. 

(http://efotg.sc.egov.usda.gov/references/public/CA/372-std-09-2010.pdf). 

Though offered in previous years, no engine repowers or retrofits were performed on 

existing equipment - all contracts were associated with equipment replacements. As of 

FY 2013, NAQI payments are no longer available to retrofit or repower mobile off-road 

agricultural equipment. 
Unofficial Working Draft – Do Not Cite or Distribute – For Discussion Purposes Only 

May 8, 2013 

A fact sheet is posted on-line at: 

http://www.ca.nrcs.usda.gov/programs/airquality/combustion_system_improvement.html

· Assurance (generally based on at least 24 months of activity data) that old equipment was 

in use (e.g., Moyer Guidelines Chapter 3, Section Z.6(B)). 

The CA-NRCS program guidelines specify that participants must own and operate their 

existing equipment in California for at least the past 12-months prior to application. 

NRCS staff conducts pre-inspections to ensure the existing mobile engine and equipment 

is operational at the time of application per the operational criteria for eligible existing 

mobile off-road engines in CPS 372 specifications: 

http://efotg.sc.egov.usda.gov/references/public/CA/372-spec-09-2010.doc

· Procedures that ensure that old equipment was used in the geographic area of interest 

(e.g., Moyer Guidelines, where?). 

The eligible geographic areas defined under the NAQI are the NAAQS non-attainment 

designations for the county in which the equipment resides. The NAQI references nonattainment counties per the EPA Greenbook posted online at: 

http://www.epa.gov/oar/oaqps/greenbk/ancl.html#CALIFORNIA. Under this current 

proposal, projects for mobile off-road agricultural equipment replaced within the eight 

counties of the San Joaquin Valley are being submitted for SIP credit. 

Quantifiable: Emissions and emission reductions attributed to an EIP are quantifiable if these 

can reliably and replicably be measured or determined. 

· Emissions data needed to calculate emission reductions must be publicly available (e.g., 

Moyer Guidelines Appendix D), current (e.g., Moyer Guidelines, where?) and accurate 

(e.g. Moyer Guidelines, where?). This should include appropriate emission factors, load 

factors, and other conversion factors. Documentation demonstrating how these factors 

were accurately derived should be provided. 

The District provided technical assistance to CA-NRCS in developing their calculation 

methodologies. The CA-NRCS emission reduction methodologies are consistent with the 

Carl Moyer Program and the emission reductions for each project can be calculated using 

the methodologies outlined in the Carl Moyer Guidelines. The NRCS calculation 

worksheets and emission factors are posted on-line at: ftp://ftpfc.sc.egov.usda.gov/CA/programs/EQIP/2013/2013_EQIP_Air_Quality_Initiative_Attach

ments.pdf

· Guidelines include necessary formulas and instructions to calculate emissions based on 

above data, (e.g. Moyer Guidelines Appendix C) and explicit instructions to ensure 

appropriate data are used in calculations (e.g., emission factors for engines should be 
Unofficial Working Draft – Do Not Cite or Distribute – For Discussion Purposes Only 

May 8, 2013 

based on the engine model year so a 1999 engine emission factor is not used for a 2004 

engine (e.g., Moyer Guidelines Chapter 4, Section D.1(H)). 

The emission factors and calculation methodologies are based on the Carl Moyer 

Program. Emission reductions for each project may be calculated by using the 

calculation worksheets and emission factors that are posted online at: ftp://ftpfc.sc.egov.usda.gov/CA/programs/EQIP/2013/2013_EQIP_Air_Quality_Initiative_Attach

ments.pdf. 

· Requirement to provide activity data for the 24 months prior to application sufficient to 

determine actual emission reductions (e.g., Moyer Guidelines Chapter 3, Section Z.6(B)). 

The CA-NRCS program guidelines specify that the applicant owns the existing 

equipment for at least 12 months prior to the date of application and operated the 

equipment during this period exclusively in California. 

· Requirement to demonstrate the percentage of emission reductions that occur in the 

geographic area of interest, and are therefore SIP creditable (e.g., Moyer Guidelines, 

where?). 

Under the NAQI, the NRCS prioritizes applications based on a county’s non-attainment 

designation within California. Applications received from attainment areas are not 

eligible. Currently, only the emission reductions originating from within the eight San 

Joaquin Valley counties are seeking SIP credit. Annual reporting will specify percent use 

within the San Joaquin Valley. 

· Requirement that new equipment be tested if the emissions are not otherwise 

certified/verified (e.g., Moyer Guidelines Chapter 10, Section C.2(K)(2)). 

CA-NRCS staff verifies the new eligible EPA Tier-certified diesel engines via ARB 

Executive Orders posted on-line at: http://www.arb.ca.gov/msprog/offroad/cert/cert.php. 

CPS-372 criteria is to install the “newest-available EPA engine Tier technology”, 

http://efotg.sc.egov.usda.gov/references/public/CA/372-std-09-2010.pdf

· Requirement to periodically (e.g., annually) audit completed projects to verify emission 

reduction projections are fulfilled (e.g. Moyer Guidelines Chapter 3, Sections EE). 

Per NRCS General Manual Title 450, Part 407, it is policy to verify and record 

information over the quality of the practice units installed 

http://directives.sc.egov.usda.gov/RollupViewer.aspx?hid=25728. Final payment is not 

made unless the completed work is checked for compliance with plans and specifications. 

Payments are held until any noted deficiencies have been addressed. CA-NRCS will 

collect annual practice usage information from program participants. 
Unofficial Working Draft – Do Not Cite or Distribute – For Discussion Purposes Only 

May 8, 2013 

Destruction of existing equipment is certified by the disposal operator and participant and 

date-stamped photos are provided. Certification worksheet is posted on-line at: ftp://ftpfc.sc.egov.usda.gov/CA/programs/EQIP/2013/2013_EQIP_Air_Quality_Initiative_Attach

ments.pdf

Enforceable: Emission reductions and other required actions are enforceable if: they are 

independently verifiable; program violations and those liable are defined; information needed to 

determine emission reductions is available to the public; and they are practicably enforceable in 

accordance with other EPA guidance on practicable enforceability. Projects must be 

implemented by legally binding contracts that: 

· Require grantees to provide all necessary recordkeeping and reporting needed to 

determine ongoing reductions within the geographic area of interest, and to satisfy the 

other integrity elements on an appropriate and specified timescale for the duration of the 

project (e.g., Moyer Guidelines Chapter 3, Sections DD). 

CA-NRCS will collect annual practice usage information from program participants 

through letters and other forms of communication over the practice lifespan. All 

reporting protects the confidentiality of program participants. 

· Require pre- and post-project agency inspections to ensure incentive program information 

is consistent with actual operating equipment (e.g., Moyer Guidelines Chapter 3, Sections 

AA and BB). 

CA-NRCS inspects proposals prior to contract development to verify the existing mobile 

off-road agricultural equipment is operational per CPS-372 specifications, and during the 

contract period of the existing equipment destruction and emission standard verification 

of the new engine and equipment. 

· Identify liable parties and liability associated with contract noncompliance (e.g., Moyer 

Guidelines Chapter 3, Section Z.11). 

Conservation Program Contracting is referenced under NRCS Manual Title 440, Part 

512, and is posted on-line at: 

http://directives.sc.egov.usda.gov/RollupViewer.aspx?hid=25932

Per Subpart C, 512.22, participants have control of the land for the length of the proposed 

contract through deed, lease, or other written authorization. If the applicant does not own 

the land, the landowner must give written consent to install, operate, and maintain the 

practice through the lifespan of the practice. 

Subpart F covers Contract Administration and provides for recovering liquidated 

damages for certain deviations to a contract. Handling contract violations are addressed 

in Subpart H where violations of contract terms must be corrected by the participant 

within a reasonable period of time to comply. If the violation continues, the contract may 

be terminated and future program participation deferred. 
Unofficial Working Draft – Do Not Cite or Distribute – For Discussion Purposes Only 

May 8, 2013 

Permanent: For programmatic reduction EIPs, emission reductions are permanent if the 

State/District and EPA can ensure that the reductions occur over the duration of the EIP rule, and 

for as long as they are relied on in the SIP. 

· Data needed to determine and track location of activity (for old and new equipment) to 

ensure reductions occur in geographic area of interest or what fraction of reductions 

occur in area of interest is reported, available and accurate. 

Under the NAQI, CA-NRCS prioritizes applications based on a county’s non-attainment 

designation within California. Applications received from attainment areas are not 

eligible. Currently, only the emission reductions originating from within the eight San 

Joaquin Valley counties are seeking SIP credit under this proposal. The destruction of 

the existing mobile off-road engines and equipment are verified per CPS 372 

specifications, posted on-line at: http://efotg.sc.egov.usda.gov/references/public/CA/372-

spec-09-2010.doc. Destruction certification worksheets are posted on-line at: ftp://ftpfc.sc.egov.usda.gov/CA/programs/EQIP/2013/2013_EQIP_Air_Quality_Initiative_Attach

ments.pdf. CA-NRCS will collect annual practice usage information from program 

participants through letters and other forms of communication over the practice lifespan. 

Usage information will include percent use within the San Joaquin Valley. 

· Requirement of pre- and post-inspections to ensure the project was completed (e.g. 

Moyer Guidelines Chapter 3, Sections AA and BB) including the requirement and proof 

that old equipment is destroyed (e.g., Moyer Guidelines Chapter 3, Section BB.4). 

Under the NAQI, CA-NRCS staff verifies by site visit the operational condition of the 

existing mobile off-road agricultural equipment. Destruction of the existing equipment 

and emissions certification verifications are performed to determine contract compliance. 

Other Suggested Program Components 

· Clarity that case-by-case directors’ discretion or other determinations cannot override 

specific requirements in the quantification guidelines. 

· Requirement that the guidelines, including all underlying information such as emission 

factors, go through public adoption process.