Agenda Date: June 14, 2012

Prepared By: John Finnell, Manager

, Permitting & Engineering

Topic: Amendment to Rule 233, Biomass Boilers

Action Requested:

1) Conduct a Public Hearing regarding the proposed adoption of amendments to Rule 233,

Biomass Boilers

.

2) Approve and adopt all Findings and Recommendations found in Attachment #2 and adopt

Resolution # 12

- 07 (Attachment #1) thereby a pproving amendments to Rule 233, Biomass

Boilers

.

Discussion: The U.S Environmental Protection Agency ( EPA ) issued a formal limited approval and limited disapproval of the Rule 233, Biomass Boilers , in the Federal Registry, Volume
77, N umber 12, on January 10, 2012 ( See Staff Report, A ttachment # 1 )

.

The limited approval means that EPA has determined that overall the rule improves the State Implementation Plan ( SIP ) and is largely consistent with the re levant Federal Clean Air Act (CAA) requirements but simultaneously issued a limited disapproval because it was their opinion that the nitrogen oxide ( NOx ) emission limits in Section 301 do not represent current Reasonably Available Co ntrol Technology (RACT ) and should be lowered.

District staff propose to amend Rule 233, Biomass Boilers

, to add an additional NOx

limitation of 68 parts per million by volume ( ppmv ) corrected to 12% c arbon d ioxide ( CO2 )

t wenty

- four hour block average. The current limit is 115 ppmv corrected to 12% CO2 three

hour rolling average.

The Rule is applicable to two bio mass boilers in Placer County. These boilers are operated by

Sierra Pacific Industries and Rio Bravo. District staff have met with representatives of both companies an d discuss ed the proposed amendment. Public notice was also published in several local newspapers.

Rule 233, Biomass Boilers , first adopted on October 6, 1994, was last amended on December
10, 2009. Th e 2009 amendment w as discussed at length with EPA staff prior to the last

amendment

. General agreement was reached that the Rule would be SIP approvable. Rule 233 was submitted to the California Air Resources Board (CARB) for approval into the SIP. CARB agreed and forwarded the rule to EPA for final approval into the SIP on May 17,

2010. 

## Board Agenda
Public Hearing/ActionPCAPCD Agenda Item

June 14, 2012 Page 2

In April of 2011

, EPA contacted the District and indicated the agency had planned on approving this Rule into the SIP but there had been objections from an environmental group, Earth Justice, to the SIP approval of San Joaqu in Valley Unified Air Pollution Control District’s (SJVUAPCD) rule which ha d similar N Ox limits for biomass boilers. As a result, EPA reconsidered its position and issued a limited approval and limited disapproval to

SJVUAPCD and indicated their intent to take action and issue a limited disapproval for Rule

233.

The EPA Technical Support Document Staff Report ( Staff Report, A ttachment #2) concluded that at least one other District, Yolo

- Solano Air Quality Management (YSAQMD) had adopted a rule with a lowe r emission limit of 90 ppmv correct to 3% O2 twenty four hour

average and that the two affected facilities in Placer County could meet th is li mit. SJVUAPCD adopted this limit in December, 2011.

The District proposes to add the NOx limitation of 68 ppmv co rrected to 12% CO2 twenty

four hour block average as equivalent to the level of 90 ppmv correct to 3% O2 adopted by YSAQMD and SJVUAPCD.

This amendment is proposed to satisfy the limited disapproval by EPA of Rule 233 and to thereby obtain approval of th e amended Rule as a revision to t he SIP. The District is required to revise Rule 233 and gain EPA SIP approval within eighteen (18) months, by July 20, 2013, or sanctions will be imposed.

Fiscal Impact:

T he two facilities impacted by this amendment hav e installed and are operating an ammonia injection system which is capable of reduc ing emissions below the level of the proposed NOx

limitation. Changes in the programming of the Continuous Emission Monitoring System (CEMS) of each facility will be necessary to incorporate compliance checks, alarms, and reporting for the new emission limit.

Recommendation:

Staff recommends that the District Board adopt Resolution # 12

- 07 (Attachment #1) thereby

a p prov ing the amendments to Rule 233, Biomass Boilers

, and approve and adopt the Recommendations found in this document and the Findings in the Staff Report in Attachment

#2.

Attachment(s) # 1. Resolution #12

- 07, Amendment to Rule 233, Biomass Boilers

#2: Staff Report