UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

REGION IX AIR DIVISION

Technical Support Document 

for

EPA‟s Rulemaking for the

California State Implementation Plan

Regarding

Yolo-Solano Air Quality Management District

Rule 3.21, “Rice Straw Emission Reduction Credits”

Prepared by: Lily Wong

March 25, 2010
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RULE IDENTIFICATION

Agency: Yolo-Solano Air Quality Management District

(YSAQMD)

Current SIP Approved Rule: None

Submittal Subject to this TSD: Rule 3.21

“Rice Straw Emission Reduction Credits”

Adopted: December 10, 2008

Submitted: March 17, 2009

BACKGROUND: 

Under Section 107(d) of the Clean Air Act (CAA), EPA designated Yolo County and a 

portion of Solano County as nonattainment for the 1-hour ozone National Ambient Air 

Quality Standards (NAAQS) and for the 1997 8-hour ozone NAAQS. This combined 

Yolo-Solano area is regulated by the Yolo-Solano Air Quality Management District 

(YSAQMD) and the area is part of the federal Sacramento Metropolitan ozone 

nonattainment area.

1

 Parts of both Yolo and Solano counties are also designated 

nonattainment for the PM2.5 NAAQS2. 

New or modified stationary sources subject to YSAQMD‟s New Source Review (NSR) 

program must obtain emission reductions to offset emission increases prior to 

constructing such sources.3 While NSR offsets are typically emission reductions 

generated from permitted stationary sources (e.g., from shutdowns or over control), the 

opportunities for generating such reductions from traditional sources has been diminished 

due to implementation of stringent emission performance standards required by 

YSAQMD prohibitory rules. The purpose of Rule 3.21 is to provide procedures to 

quantify, certify and issue emission reduction credits (ERCs) for emission reductions that 

have resulted from the permanent curtailment of rice straw burning in YSAQMD to 

ensure such reductions meet federal offset requirements.

4

 Existing YSAQMD Rule 3.5 –

“Emission Reduction Credits” governs the banking and transfer of ERCs, and Rule 3.4 –

“New Source Review” governs the use of ERCs. These two rules are not the subject of 

this rulemaking action. 

 

1 YSAQMD also refers to this area as the Sacramento Federal Nonattainmnet Area (SFNA).

2 YSAQMD is not part of the federal Sacramento County PM10 nonattainment area.

3 YSAQMD‟s NSR program, Rule 3.4 “New Source Review,” includes requirements that are based on 

more stringent state law. Because Rule 3.4 has been approved into the SIP, the more stringent state 

requirements (e.g., requiring offsets that would not normally be required for federal NSR purposes) are also 

federally enforceable. 

4 ERCs used to offset emission increases of nonattainment area pollutants generally must be generated from 

the same nonattainment area. Rule 3.21, if approved, would provide for the generation of federally 

recognized ERCs to address more stringent state offset requirements even though YSAQMD is in federal 

attainment for PM10 and CO. See Attachment 4. 
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Historically, the practice of rice growing included burning the field stubble or straw

following harvest to kill weeds and insects and prepare the field for next year‟s plantings. 

In 1991, California passed the Connelly-Areias-Chandler Rice Straw Burning Reduction 

Act of 1991 (California Health & Safety Code (CH&SC) 41865), which required a phase 

down of the allowable rice straw burning acreage in the Sacramento Valley Air Basin.

5

 

By 2001, the phase down was complete and only 125,000 acres or 25% of the historically 

burned rice growing acreage can now be burned in any one year. One unique feature of 

the state law was that it specifically allowed ERCs to be generated from this curtailment, 

and stated that the emission reductions could not be relied upon for demonstrating 

reasonable further progress or attainment of a NAAQS. While YSAQMD has previously 

issued rice straw ERCs under YSAQMD Rule 3.5,

6 Rule 3.21 was designed to ensure that 

the ERCs issued from this non-traditional source would be recognized for the purpose of 

providing federal NSR offsets.7 

RULE SUMMARY:

Rule 3.21 establishes standards, the administrative process and enforceable procedures

for calculating creditable emission reductions of volatile organic compounds (VOC), 

nitrogen oxides (NOx), carbon monoxide (CO), particulate matter of 10 microns or less 

(PM10), and sulfur oxides (SOx) created through the permanent curtailment of burning 

rice straw. Once an ERC certificate has been issued by the Air Pollution Control Officer 

(APCO), ERCs may be banked, traded, and used as offsets to meet federal NSR

requirements. 

Owners of parcels are eligible to apply for ERCs if rice straw was burned during the 

baseline period, i.e., 1988 through 1992 (Sections 102 and 301). By June 9, 2009 

(Section 401), the owner must submit an application that meets all rule requirements,

including documentation of historic rice growing acreage and burning practices, and a

statement of intent to file a deed restriction which prohibits agricultural burning that is 

not consistent with the ERC certificate (Section 402). These requirements are designed 

to limit agricultural burning to no more than 25% of the total acreage historically used to 

grow rice. 

The rule sets an application deadline to ensure the APCO can consider all historic rice 

growing acreage and ensure compliance with the acreage limits provided under state law. 

 

5 The “Sacramento Valley Air Basin,” as defined by the state, is larger than and completely encompasses 

the Sacramento federal nonattainment areas for ozone, PM10, and PM2.5. 

6 Although a 1993 version of Rule 3.5 “Emission Reduction Credits” (formerly Rule 3.14) was approved 

into the SIP, there is a more recent version of this rule being implemented at the local level. See 

Attachment 4. However, Rule 3.5 does not include the necessary provisions to ensure that emission 

reduction credits from nontraditional sources such as curtailing rice straw burning are surplus, quantifiable, 

enforceable, and permanent and therefore valid for federal NSR offset purposes. Because nontraditional 

sources have generally not been regulated, there is much less historic data. Nontraditional ERC generating 

rules must include more specific quantification procedures to provide the necessary assurances that the 

reductions are valid and can be recognized as federal NSR offsets.

7 ERCs generated pursuant to Rule 3.21 may also be used to address California offset requirements which 

are not in the SIP. 
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Section 302 provides that the total available acreage for generating ERCs in YSAQMD 

shall not exceed 28,279 acres. If the APCO receives applications where the total acreage 

exceeds this amount, the APCO must adjust the available acreage for each applicant in 

accordance with the procedures in Section 404. This section ensures that the emission 

reductions come from a „real‟ reduction in rice straw burning activities. 

The emission reductions for each applicant are calculated in accordance with procedures 

in Sections 303 and 304, and rely on the following parameters:

Available Acreage (acres) = 

[applicant‟s eligible parcels (acres)] x 75% x [historic burn fraction8(%)]

Emission Factors (lbs/acre) listed in Section 303, take into account:

[fuel loading9(tons of rice straw burned/acre)] x [Jenkins‟ emission 

factors10 for rice straw burning (lbs pollutant/tons of rice straw burned)]

Annual Emission Reduction (lbs) = Available Acreage (acres) x Emission Factor (lbs/acre)

Consistent with state requirements, Rule 3.21 also apportions the annual emission 

reductions into quarters based on the historic rice growing and burn practices within the 

district. 

Rule 3.21 includes several sections regarding burn restrictions. Section 305 requires a 

deed restriction be placed on the parcel and prohibits burning that is not consistent with 

the ERC certificate. The issuance of an ERC is subject to Section 307 which limits 

agricultural burning to 25% of the rice growing acreage. Deed restrictions are filed with 

the county assessor‟s office and stay with the property in perpetuity. Section 306 

requires YSAQMD to place the parcel on a “restricted burn list” which is reviewed by air 

district staff before agricultural burn permits are issued. Lastly, Section 307 explicitly 

states that it is a violation of Rule 3.21 if agricultural burning is conducted on more than 

25% of the rice growing acreage for a parcel that has received an ERC certificate. 

An owner that received state rice straw ERCs pursuant to Rule 3.5 may re-apply under 

Rule 3.21 to have its previous ERCs re-certified as federal ERCs under this rule. 

Applicants are also required to maintain, for a minimum of five years, records on amount 

of acres planted and burned as well as the type of crop grown. The District is required to 

conduct a program evaluation and provide a report to EPA.

 

8 The historic burn fraction (HBF) varies from district to district. The HBF in YSAQMD is 96%.

9

Fuel loading from rice is 3.0 tons/acre.

10 The emission factors (sometimes referred to as Jenkins II emission factors) come from a California Air 

Resources Board (CARB) memo, which was originally released 8/17/2000 and updated 9/12/2000. The 

factors in the memo are cited as being predominately from Bryan Jenkins‟ report entitled, “Atmospheric 

Pollutant Emission Factors from Open Burning of Agricultural and Forest Biomass by Wind Tunnel 

Simulations,” 1996, UC Davis. 
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EPA REVIEW CRITERIA: EPA generally considers three criteria in evaluating state 

and local prohibitory rules for approval into the SIP. For this rulemaking, we are 

considering two additional criteria. 

1. Enforceability - Section 110(a) of the CAA requires enforceable SIP requirements. 

Several EPA guidance documents are used to evaluate rule enforceability, 

including the “Bluebook” (Issues Relating to VOC Regulation Cutpoints, 

Deficiencies, and Clarification to Appendix D, November 24, 1978, 52 FR 45044)

and EPA Region IX‟s Guidance Document for Correcting Common VOC and 

Other Rule Deficiencies (August 21, 2001, the “Little Bluebook”).

2. Rule Relaxation - Where previous versions of rules or plans are SIP approved, 

EPA must evaluate whether new submittals comply with sections 110(l) and 193 

of the CAA regarding SIP relaxations. 

3. Stringency - Section 182(b)(2) of the CAA requires certain SIP rules to apply 

Reasonably Available Control Technology (RACT). Other sections of the Act 

require other control levels. 

4. New Source Review – Section 173(c) of the CAA and 40 CFR Part 51, Appendix 

S, “Emission Offset Interpretative Ruling” require certain sources to obtain 

emission reductions to offset increased emissions from new projects. 

5. Economic Incentive Programs - EPA published the guidance, “Improving Air 

Quality with Economic Incentive Programs” on January 2001 (EPA-452/R-01-

001). This guidance applies to discretionary economic incentive programs (EIPs) 

and represents the agency‟s interpretation of what EIPs should contain in order to 

meet the requirements of the CAA. Because this guidance is non-binding and does 

not represent final agency action, EPA is using the guidance as an initial screen to 

determine whether potential approvability issues arise.

EPA EVALUATION: Rule 3.21 complies with the evaluation criteria as discussed 

briefly below.

1. Enforceability - The applicability and requirements of Rule 3.21 are generally clear 

and consistent with the Bluebook and other relevant EPA guidance regarding 

enforceability. 

2. Relaxation – Rule 3.21 does not replace any existing rule currently in the SIP. 

Therefore, approval of this rule will not relax the SIP. 

3. Stringency - None of these CAA sections apply to Rule 3.21, so stringency is not 

being used to evaluate for SIP approval.
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4. New Source Review – Emission reductions to be used as NSR offsets must be 

surplus, quantifiable, enforceable, and permanent. 

In order for emission reductions from the curtailment of rice straw burning to be 

considered surplus, the emissions from this source category must be clearly and

accurately quantified in the baseline emissions inventory and in future-year 

projections of the emissions inventory used in the attainment demonstration. In 

addition, the emission reductions created under Rule 3.21 must not be relied upon 

in any attainment or progress plans. The air districts in the Sacramento 

Metropolitan area updated their 2002 emissions inventory to include agricultural 

burning, including rice straw burning. Furthermore, the photochemical modeling 

to determine the carrying capacity for the 8-hour ozone attainment demonstration 

did not rely on the emission reductions from Rule 3.21 or other district‟s rice straw 

ERC rules. The modeling also assumed that the total quantity of rice straw 

emission reductions that can be issued under the rice straw ERC rules for all 

Districts in the basin exist in the air. Although CH&SC 41865 requires the 

curtailment of rice straw burning, these emission reductions are not being relied 

upon to demonstrate attainment, RFP or any other purpose and can therefore be 

considered surplus. 

Rule 3.21 meets the quantification criteria because it includes a methodology to 

quantify emissions and emission reductions in Sections 302, 303, and 304. The 

emission factors and fuel loading factor come from a CARB memo that relies 

primarily on a 1996 paper by Bryan Jenkins of U.C. Davis. The determination of 

acreage which historically grew rice and burned rice straw is based on 

documentation such as the grower‟s rice sales record, U.S. Department of 

Agriculture data on rice planting, air district burn permits, log books, and pictures. 

The emission reductions are permanent and enforceable because the owner of the 

parcel, who has been issued an ERC under Rule 3.21, is subject to the 

requirements of the rule, including the requirement to burn no more than 25% of 

the rice growing acreage. An owner who violates the rule is subject to 

enforcement and penalties. Should the property change ownership, a deed 

restriction filed with the assessor‟s office would alert subsequent owners that they 

cannot burn more the 25% of the rice growing acreage in any given year. 

Rule 3.21 includes references to other YSAQMD rules. We evaluated the 

referenced rules to determine the purpose of the reference, whether the rules were 

SIP approved, and whether the rules affected the criteria, standards, and 

procedures for generating valid ERCs under Rule 3.21. We determined that these 

references did not pose any problem as these references primarily provided 

additional definitions or referred to the administrative procedures for transferring 

ownership of ERCs generated under this rule. See Attachment 3 for a more 

detailed description of this evaluation.
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5. Economic Incentive Program - Several fundamental principles described in the 

guidance are integrity (credits are based upon emission reductions which are 

surplus, enforceable, quantifiable, and permanent), equity, and environmental 

benefit. The integrity principle is the same as those described under NSR

evaluation and described above. This rule generates emissions offsets for the NSR 

program and does not raise any equity issues that are different from the NSR 

program in general. The environmental benefit has been addressed in the offset 

ratio defined by the NSR program. 

EPA ACTION: EPA staff recommends full approval of the submitted version of Rule 

3.21 because it complies with all relevant CAA requirements and is consistent with 

EPA‟s guidance for NSR and economic incentive programs. 

ATTACHMENTS:

1. YSAQMD Rule 3.21, “Rice Straw Emission Reduction Credits,” adopted on 

December 10, 2008 and submitted by CARB to EPA on March 17, 2009.

2. “Improving Air Quality with Economic Incentive Programs,” January 2001, EPA452/R-01-001 (cover only; text at 

http://www.epa.gov/ttncaaa1/t1/meta/m1201.html).

3. Memo dated March 8, 2010 from Laura Yannayon, EPA Permits Office, “Rules 

referenced in Rule 3.21.”

4. Memo dated March 10, 2010 from Lily Wong, EPA Rules Office, “YSAQMD 

Attainment Status and ERCs.”
Yolo-Solano AQMD

Adopted December 10, 2008 Reg. III, Rule 3.21, Page 1

RULE 3.21 RICE STRAW EMISSION REDUCTION CREDITS

ADOPTED December 10, 2008

INDEX

100 GENERAL

101 PURPOSE

102 APPLICABILITY

200 DEFINITIONS

201 AGRICULTURAL BURNING

202 AGRICULTURAL BURN PERMIT

203 AGRICULTURAL OPERATION

204 AIR POLLUTION CONTROL OFFICER (APCO)

205 APPLICANT

206 APPLICANT DESIGNEE

207 BANKING

208 BASELINE PERIOD

209 CERTIFIED

210 EMISSION REDUCTION CREDITS (ERCs)

211 HISTORIC BURN FRACTION (HBF)

212 NEW APPLICATION

213 PARCEL

214 RE-CERTIFICATION APPLICATION

215 REGISTER

216 RESTRICTED BURN LIST

217 RICE STRAW BURNING 

218 RICE STRAW BURNING EMISSION REDUCTIONS

219 RICE GROWING ACREAGE

220 SURPLUS

300 STANDARDS

301 DETERMINATION IF A PARCEL IS ELIGIBLE

302 DETERMINATION OF AVAILABLE ACREAGE

303 DETERMINATION OF ANNUAL EMISSION REDUCTIONS AVAILABLE

304 DETERMINATION OF QUARTERLY EMISSION REDUCTIONS AVAILABLE

305 PRIORITY RESERVE ADJUSTMENT

306 DEED RESTRICTION

307 RESTRICTED BURN LIST

308 BURNING PROHIBITION
Yolo-Solano AQMD

Adopted December 10, 2008 Reg. III, Rule 3.21, Page 2

400 ADMINISTRATIVE REQUIREMENTS

401 APPLICATION FILING DEADLINE

402 APPLICATION REQUIREMENTS - NEW APPLICATIONS

403 APPLICATION REQUIREMENTS - RE-CERTIFICATION APPLICATIONS

404 AVAILABLE ACREAGE ADJUSTMENT

405 APPLICATION PROCESSING PROCEDURES

406 VIOLATIONS

500 MONITORING AND RECORDS

501 BURN RECORDS

600 PROGRAM EVALUATION
Yolo-Solano AQMD

Adopted December 10, 2008 Reg. III, Rule 3.21, Page 3

100 GENERAL

101 PURPOSE: The purpose of this Rule is to provide a federally recognized procedure

for quantifying and certifying rice straw burning emission reductions, and issuing the

resulting Emission Reduction Credit (ERC) certificates.

This rule provides the only process by which ERC certificates issued for reductions

in rice straw burning may be stored for later use to meet federal new source review

offset requirements. Once issued in accordance with this rule, the procedures in Rule

3.5 EMISSION REDUCTION CREDITS shall be used as the administrative

mechanism for sources to transfer ERCs to other sources for use as offsets.

102 APPLICABILITY: The provisions of this Rule shall apply to any agricultural

operation that grew rice and burned rice straw in the District during the baseline

period.

200 DEFINITIONS: Unless otherwise defined below, the terms used in this Rule are the same

as defined in District Rule 3.5, EMISSION REDUCTION CREDITS, Rule 3.4, NEW

SOURCE REVIEW, or Rule 1.1, GENERAL PROVISIONS, in that order of priority.

201 AGRICULTURAL BURNING: Open outdoor fires used in the growing of crops.

For the purpose of this Rule, agricultural burning is considered to be a source and

such activity requires an agricultural burn permit.

202 AGRICULTURAL BURN PERMIT: A permit issued by the District, which is

required in order to conduct an agricultural burn.

203 AGRICULTURAL OPERATION: Equipment used exclusively in the growing of

agricultural crops or in the commercial raising of fowl or animals.

204 AIR POLLUTION CONTROL OFFICER (APCO): The Air Pollution Control

Officer of the Yolo-Solano Air Quality Management District (District), or his or her

designee.

205 APPLICANT: For a new application, the owner (or his/her designee) of the parcel.

For a re-certification application, the current owner (or his/her designee) of an

existing rice straw burning ERC.

206 APPLICANT DESIGNEE: The person, company, or entity submitting an

application on behalf of the applicant. Such designee shall provide written

authorization signed by the applicant to serve as the designee.

207 BANKING: The system of quantifying, certifying, recording, and storing ERCs for

future use and transfer. This system shall be called the ERC Bank.
Yolo-Solano AQMD

Adopted December 10, 2008 Reg. III, Rule 3.21, Page 4

208 BASELINE PERIOD: Calendar years 1988 through 1992.

209 CERTIFIED: ERCs which have been evaluated under the requirements of this Rule

and other applicable District, State, and Federal Rules and Regulations and which

have been granted by the APCO.

210 EMISSION REDUCTION CREDITS (ERCs): Reductions of actual emissions that

are registered with the District in accordance with the requirements of Rule 3.5,

EMISSION REDUCTION CREDITS.

211 HISTORIC BURN FRACTION (HBF): The amount of rice (as a percentage of the

amount planted) which was burned during the baseline period, equal to 96%.

212 NEW APPLICATION: An application submitted in accordance with this rule for

which the District has not already issued an ERC for reductions in rice straw burning

for a parcel(s) prior to adoption of this Rule.

213 PARCEL: A legally identifiable piece of land as registered with a County

Assessor’s office for property tax purposes and assigned an Assessors Parcel Number

(APN).

214 RE-CERTIFICATION APPLICATION: An application submitted in accordance

with this rule for which the District has previously issued an ERC for reductions in

rice straw burning for a parcel(s) prior to adoption of this Rule.

215 REGISTER: The document that records all ERC deposits, withdrawals, transfers,

and transactions.

216 RESTRICTED BURN LIST: A list (maintained by the District) of parcels which

have restrictions related to future agricultural burning.

217 RICE STRAW BURNING: The intentional open burning of rice straw material.

For the purpose of this Rule, rice straw burning is considered to be a source and such

activity requires an agricultural burn permit.

218 RICE STRAW BURNING EMISSION REDUCTIONS: Emission reductions that

qualify for banking pursuant to Section 41865 of the California Health and Safety

Code.

219 RICE GROWING ACREAGE: The amount of acreage contained in a parcel that

was used for the production of rice during the baseline period.

220 SURPLUS: The amount of emission reductions that are, at the time of generation

of an ERC, not otherwise required by federal, state, or local law, not required by any

legal settlement or consent decree, and not relied upon to meet any requirement
Yolo-Solano AQMD

Adopted December 10, 2008 Reg. III, Rule 3.21, Page 5

related to the California State Implementation Plan (SIP). However, emission

reductions required by a state statute that provides that the subject emission

reductions shall be considered surplus may be considered surplus for purposes of this

Rule if those reductions meet all other requirements of this Section. Examples of

federal, state, and local laws, and of SIP-related requirements, include, but are not

limited to, the following:

220.1 The federally-approved California SIP;

220.2 Other adopted State air quality laws and regulations not in the SIP, including

but not limited to, any requirement, regulation, or measure that: (1) the

District or the State has included on a legally-required and publicly-available

list of measures that are scheduled for adoption by the District or the State in

the future; or (2) is the subject of a public notice distributed by the District

or the State regarding an intent to adopt such revision;

220.3 Any other source- or source-category specific regulatory or permitting

requirement, including, but not limited to, Reasonable Available Control

Technology (RACT), New Source Performance Standards (NSPS), National

Emission Standards for Hazardous Air Pollutants (NESHAP), Best Available

Control Measures (BACM), Best Available Control Technology (BACT),

and the Lowest Achievable Emission Rate (LAER); and

220.4 Any regulation or supporting documentation that is required by the federal

Clean Air Act but is not contained or referenced in 40 Code of Federal

Regulations (CFR) Part 52, including but not limited to: assumptions used in

attainment and maintenance demonstrations (including Reasonable Further

Progress demonstrations and milestone demonstrations), including any

proposed control measure identified as potentially contributing to an

enforceable near-term emissions reduction commitment; assumptions used

in conformity demonstrations; and assumptions used in emissions

inventories.

300 STANDARDS

301 DETERMINATION IF A PARCEL IS ELIGIBLE: A particular parcel qualifies

to generate ERCs under this rule if the following requirements are met:

301.1 The parcel is located in the Sacramento Federal Non-attainment Area

(SFNA); and

301.2 Rice straw burning occurred on the parcel during the baseline period.

302 DETERMINATION OF AVAILABLE ACREAGE: The available acreage for

generating ERCs shall be determined by adding all of the rice growing acreage of an
Yolo-Solano AQMD

Adopted December 10, 2008 Reg. III, Rule 3.21, Page 6

applicant’s eligible parcels and multiplying by the HBF. In no case shall the total

available acreage for the entire District exceed 28,279 acres. In the event that the

District receives applications for which the total available acreage exceeds 28,279

acres, the District shall lower the amount of available acreage for each application

in accordance with section 404.

303 DETERMINATION OF ANNUAL EMISSION REDUCTIONS AVAILABLE:

The amount of annual emission reductions available shall be determined by

multiplying the available acreage times 75% times the applicable emission factor in

the following table:

Pollutant Emission Factor

(lbs/acre)

Volatile Organic Compounds (VOC) 14.1

Nitrogen Oxides (NOx) 15.6

Carbon Monoxide (CO) 172.2

Particulate Matter less than 10

microns (PM10)

18.9

Sulfur Oxides (SOx) 3.3

304 DETERMINATION OF QUARTERLY EMISSION REDUCTIONS

AVAILABLE: The emission reductions shall be quantified on a calendar quarter

basis. The following percentages shall be used to determine the amount of emission

reductions in each calendar quarter:

Calendar Quarter Percentage

First Quarter 28%

Second Quarter 26%

Third Quarter 8%

Fourth Quarter 38%

305 PRIORITY RESERVE ADJUSTMENT: Before the APCO may issue an ERC, the

calculated emission reductions shall be adjusted 1.05 emission reductions to 1.0

ERC. Emission reductions captured by this adjustment shall pass to the District’s

Priority Reserve Bank.

306 DEED RESTRICTION: Prior to the issuance of an ERC, a deed restriction shall

be placed on the parcel or group of contiguous parcels for which ERCs will be
Yolo-Solano AQMD

Adopted December 10, 2008 Reg. III, Rule 3.21, Page 7

granted and a copy provided to the District. The deed restriction shall prohibit

agricultural burning on the parcel which is not consistent with the ERC.

307 RESTRICTED BURN LIST: Prior to the issuance of an ERC, the District shall

place the parcel or group of contiguous parcels on the restricted burn list. In each

calendar year, no agricultural burn permit may be issued for greater than 25% of the

rice growing acreage of any parcel listed on the restricted burn list.

308 BURNING PROHIBITION: No person shall conduct agricultural burning on more

than 25% of the rice growing acreage of a parcel which has received an ERC

certificate pursuant to the provisions of this rule. In addition, applicants must

comply with California Health & Safety Code (CH&SC) 41865.

400 ADMINISTRATIVE REQUIREMENTS

401 APPLICATION FILING DEADLINE: All applications to obtain rice straw ERC

certificates in accordance with this rule shall be submitted by June 10, 2009.

Applications submitted after June 10, 2009 shall not be eligible for ERCs under this

rule.

402 APPLICATION REQUIREMENTS - NEW APPLICATIONS: The applicant

shall submit one application for each parcel or for each set of contiguous parcels.

The application shall contain the following information:

402.1 List of each parcel included in the application, including APN and any

owner’s designation or identifier.

402.2 The acreage of each parcel that was used to grow rice during the baseline

period, and documentation of such acreage.

402.3 Documentation that rice straw burning occurred on the acreage of each parcel

(identified above) during the baseline period. Examples of acceptable

documentation include, but are not limited to, copies of a District burn

permit, log books, pictures, or other District approved verifiable records. In

the event that a burn permit or other records are not available, the District

may accept a signed affidavit (under penalty of perjury) from the applicant

certifying that rice straw on the parcel was burned during the baseline period.

402.4 A statement of intent to file a deed restriction required by Section 305 for

each parcel or for each set of contiguous parcels for which an application is

being submitted (A copy of the deed restriction must be provided prior to

final issuance of the rice straw ERC certificate).

402.5 Filing fees for the evaluation and issuance of ERCs in accordance with

District Rule 4.1, PERMIT FEES - STATIONARY SOURCE.
Yolo-Solano AQMD

Adopted December 10, 2008 Reg. III, Rule 3.21, Page 8

403 APPLICATION REQUIREMENTS - RE-CERTIFICATION

APPLICATIONS: The applicant shall submit one application for each existing ERC

certificate. In addition to the information in 402, prior to re-issuance of the ERC, the

applicant must surrender all previous certificates issued for rice straw burning on the

parcel or group of contiguous parcels.

404 AVAILABLE ACREAGE ADJUSTMENT: In the event that the District receives

applications in which the requested available acreage totals to more than 28,279

acres, the District shall lower the percentage available as follows:

404.1 The re-certification applications meeting the criteria of this rule shall get full

credit on their acreage.

404.2 The applications with verifiable burn records will have second priority. If

the total available acreage for all these applications along with the recertification applications does not exceed 28,279 acres, these applications

will get full credit. If the total of all these applications along with the recertification applications exceeds 28,279 acres, these applications shall be

adjusted proportionally so that the total acreage for which all rice straw

burning ERCs are issued does not exceed 28,279 acres.

404.3 For all remaining applications with affidavits for burn documentation, the

amount of rice straw acreage determined to be available shall be adjusted

proportionally so that the total acreage for which all rice straw burning ERCs

are issued does not exceed 28,279 acres.

405 APPLICATION PROCESSING PROCEDURES:

405.1 COMPLETE APPLICATION: The APCO shall determine whether the

application is complete not later than 30 days after receipt of the application

for ERC certificates. If the APCO determines that the application is not

complete, the applicant shall be notified in writing of the decision specifying

the information required. If the specified information is not submitted within

30 days the application shall be canceled by the APCO.

405.2 ADDITIONAL INFORMATION: Upon receipt of additional information

for an incomplete application a new 30 day period to determine completeness

shall begin. During the processing of the application, the APCO may request

an applicant to clarify, amplify, correct, or otherwise supplement the

information submitted in the application.

405.3 PRELIMINARY DECISION: Following acceptance of an application as

complete, the APCO shall perform the evaluations required to determine

compliance with all applicable District Rules and Regulations and make a
Yolo-Solano AQMD

Adopted December 10, 2008 Reg. III, Rule 3.21, Page 9

preliminary written decision as to whether the emission reduction should be

certified as ERCs. The decision should be supported by a succinct written

analysis.

405.4 PUBLICATION AND PUBLIC COMMENT: Within 10 calendar days

following a preliminary decision, the APCO shall publish, in at least one

newspaper of general circulation in the District, a notice stating the

preliminary decision of the APCO, noting how the pertinent information can

be obtained, and inviting written public comment for a 30 day period

following the date of publication.

405.5 DEED RESTRICTION: Within 90 calendar days of the public notice being

published, the applicant shall submit a final copy of a legal deed restriction.

405.6 PUBLIC INSPECTION: The APCO shall make available for public

inspection at the District office the information submitted by the applicant

and the APCO’s analysis no later than the date the notice of the preliminary

decision is published, pursuant to Section 405.4. Further, all such

information shall be transmitted to the California Air Resources Board and

the US Environmental Protection Agency (EPA) regional office, and to any

party which requests such information no later than the date of publication.

405.7 FINAL ACTION: Within 180 days after the application filing deadline in

Section 401 of this rule, the APCO shall take final action on the applications,

after considering all written comments.

406 VIOLATIONS: Failure to comply with any provision or restriction of this rule shall

be considered a violation of this rule.

500 MONITORING AND RECORDS

501 BURN RECORDS: For any parcel or group of contiguous parcels for which a rice

straw ERC certificate has been issued, the initial ERC holder or current land owner

shall keep records of the amount of acres, crop type and burning that has occurred

during the previous 5 years.

600 PROGRAM EVALUATION: Within two (2) years after adoption of this rule, the District

shall evaluate the program and submit an evaluation report to EPA. The report shall include

a discussion of the total number of applications approved, total acreage subject to this rule,

and total amount of ERCs issued.
United States 

Environmental Protection 

Agency 

Office of Air and Radiation €PA-452lR-01-001 

January 2001 

OEPA Improving Air Quality with 

Economic Incentive Programs 
To: Lily Wong March 8, 2010

From: Laura Yannayon

Re: Rules referenced in Rule3.21

The main context in which other rules are cited in Rule 3.21 is to provide additional definitions. 

(There is also a citation to their fee rule, but it is not required to be included in the SIP). In addition, 

Rule 3.5 is cited as the source of administrative requirements for transferring ownership of ERCs 

generated by this rule. In this capacity, it is not necessary for Rule 3.5 to be SIP approved. 

I have reviewed both the SIP and local versions of each rule to determine any changes to defined 

terms and ensure terms not otherwise defined in Rule 3.21 are acceptable for SIP approval of this 

rule. Key definitions were reviewed to verify no changes between the two rule versions (SIP and 

Local), and that defined terms, not otherwise defined in Rule 3.21, are acceptable for Rule 3.21. 

My analysis is provided below.

Rule 1.1 – General Provisions and Definitions

SIP Version: Adopted 8/13/97. SIP approved 3/22/04. 69 FR 13234 

Local Version: REVISED December 8, 1993

REVISED August 13, 1997

REVISED December 14, 2005

REVISED May 14, 2008

The following defined terms have been added: APCO, ASTM, CARB and EPA; and the definition 

of Exempt Compound was updated. None of these changes affect implementation of Rule 3.21. 

Rule 3.4 – New Source Review

SIP Version: Adopted 12/11/96. SIP approved 7/7/97. 62 FR 36214

Local Version: REVISED August 13, 1997

There are no new or deleted terms defined and there appears to be no changes to any terms. 

Rule 3.5 – Emission Reduction Credits

SIP Version: Rule 3.14 – Adopted 9/22/93. SIP approved 7/7/97. 62 FR 36214 

Local Version: ADOPTED September 22, 1993

REVISED February 23, 1994

REVISED October 12, 1994

REVISED November 13, 1996

The following defined terms have been added: Biomass, No-burn List, Parcel, Registered Owner 

and Temporary Actual Emission Reduction. Only the terms Restricted Burn List and Parcel are 

used in Rule 3-21 and both of these terms are already defined within Rule 3-21, therefore the 

definitions of Rule 3-5 would not be applicable. 
1

ATTACHMENT 4

MEMORANDUM

Date: March 10, 2010

Subject: YSAQMD Attainment Status & ERCS

From: Lily Wong

Rules Office, Air-4

To: File for Proposed Rulemaking on YSAQMD Rule 3.21

If YSAQMD Rule 3.21 is approved into the SIP, it will provide for the generation of federally 

recognized ERCs for VOC, NOx, PM10, CO, and SOx. YSAQMD’s attainment status varies 

depending on the pollutant. The following describes the area’s federal attainment status, as well 

as where and how these ERCs can be used. This analysis takes into account the fact that 

YSAQMD may be in federal attainment (e.g., where no offsets are required for federal NSR) yet 

sources in the area may be subject to more stringent state offset requirements embedded in the 

SIP-approved NSR rule. The more stringent state requirements are typically implemented by 

having a lower emissions threshold for requiring offsets. 

VOC and NOx (1-hour and 8-hour Ozone NAAQS)

YSAQMD is federal nonattainment for 1-hour and 8-hour ozone. 

VOC and NOx are precursors to ozone.

ERCs for VOC and NOx can be used within the federal Sacramento Metropolitan ozone 

nonattainment area.

PM10

YSAQMD is federal attainment for PM10, although Sacramento County is federal 

nonattainment for PM10.

Because these PM10 ERCs are being generated in an area that is in federal attainment, 

under the CAA, these PM10 ERCs cannot be used as NSR offsets in any federal 

nonattainment area, including Sacramento County.

These PM10 ERCs could be used to meet more stringent state PM10 offset requirements 

which are embedded in YSAQMD’s SIP-approved NSR rule.
2

PM2.5

While YSAQMD is federal nonattainment for PM2.5, the designation was finalized in

December 2009. The attainment plan for PM2.5 is not due until December 2012 and the 

issue of generating PM2.5 ERCs will need to be addressed later in the context of the PM2.5

attainment plan. 

This rule does not generate PM2.5 ERCs. 

CO

YSAQMD (and the entire state) is federal attainment for CO. 

The CO ERCs could be used to meet more stringent state offset requirements which are 

embedded in YSAQMD’s SIP-approved NSR rule or any other area in accordance with 

state law.

SOX

SOX is a precursor to PM10 and PM2.5.

Because YSAQMD is in federal attainment for PM10, the SOx ERCs could be used for 

more stringent state offset requirements in YSAQMD, but cannot be used as NSR offsets 

in any federal PM10 nonattainment area (see PM10 discussion above).

Because YSAQMD is a federal nonattainment area for PM2.5, the SOx ERCs could be 

used for both federal and the more stringent state offset requirements in YSAQMD, and 

as NSR offsets in any federal PM2.5 nonattainment area that meets the necessary criteria.