SJVUAPCD 4694

- 1 12/15/2005

RULE 4694 WINE FERMENTATION AN D STORAGE TANKS ( Adopted December 15, 2005)

1.0 Purpose

The purpose of this rule is to reduce emissions of volatile organic compounds (VOC) from the fermentation and bulk storage of wine, or achieve equivalent reductions from

alternative emission sources.

2.0 Applicability

This rule applies to any winery fermenting wine and/or storing wine in bulk containers.

3.0 Definitions

3.1 Air Pollution Control Officer (APCO): as defined in Rule 1020 (Definitions).

3.2 Air Resource s Board (ARB or CARB) as defined in Rule 1020 (Definitions).

3.3 Baseline Fermentation Emissions (BFE): the average Uncontrolled Fermentation Emissions from wine fermentation, occurring at the winery during a given Baseline Period pursuant to Section 3.4, or as established by the Operator pursuant to section 3.3.3. For wineries with less than three consecutive years of fermentation activities, the baseline shall be established pursuant to Section 3.3.2
or Section 3.3.3.

3.3.1 The BFE shall be calculated as follows:



### CY UFE BFE ∑

=

Where,

BFE = Baseline Fermentation Emissions



# S UFE = The sum of annual Uncontrolled Fermentation Emissions

for a given Baseline Period

CY = The number of consecutive years used to establish the

BFE for a given Bas eline Period

3.3.2 If the winery does not have three consecutive years of fermentation data, CY shall equal the number of consecutive years of available fermentation

data.

3.3.3 Operators may voluntarily establish their BFE provided that the BFE shall

no t be less than the BFE calculated pursuant to Section 3.3.1, and that the Formatted: Bullets and NumberingSJVUAPCD 4694

- 2 12/15/2005 BFE shall not be greater than the operator’s Potential to Emit for

fermentation VOC emissions

3.4 Baseline Period: the three consecutive calendar years, immediately before the

year of calculation of the Baseline Fermentation Emissions.

3.5 Batch: a quantity of must fermented at the same time in a fermenter.

3.6 Brix: the sugar content of grapes, juice, or wine. E ach degree Brix is equivalent to 1 gram of sugar per 100 grams of g rape juice

.

3.7 Capture System: equipment, including but not limited to, hoods, ducts, fans, booths, and vents which are used to contain, capture, or transport an air pollutant

to an emissions control device.

3.8 Certified Emissions Reductions (CER): t he reduction of VOC or NOx emissions, from mobile, stationary, or area sources, which are actual, quantifiable, enforceable, and surplus at the time of use, as determined by the APCO.

3.9 Combined Capture and Control Efficiency (CCCE) : the percent reduct ion in emissions achieved by an emissions control system. CCCE shall be calculated as

follows:

CCCE = %CSE X %CDE

Where,

CCCE = Combined Capture and Control Efficiency

%CSE = Capture System Efficiency, as established in the Permit To Operate

%CD E = Control Device Efficiency as established in the Permit To Operate

3.10 Compliance Period: the three consecutive calendar years immediately following the year of calculation of the Baseline Fermentation Emissions.

3.11 Continuous or Adjacent Property : a property consisting of two or more parcels of land with a common point or boundary, or separated solely by a public roadway or other public right

- of

- way.

3.12 Control Device: equipment that is used to reduce the amount of air pollutants in

an exhaus t stream before discharge to the ambient air.

3.13 Emission Control System: a system consisting of a capture system and control

device.SJVUAPCD 4694

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3.14 Emission Reduction Duration: the period of time during which the action generating an emission reduction result s in Certified Emission Reductions.

3.15 Fermentation: the action of yeast upon sugar to produce ethyl alcohol. Fermentation begins within a given fermenter when an operator inoculates the must with yeast or when the operator allows fermentation to begi n naturally. Fermentation ends when the operator stops fermentation, when fermentation stops naturally, or when the fermenting juice reaches a sugar content of 4 degrees Brix,
or less.

3.16 Fermentation Emission Reduction (FER): the reduction in VOC emi ssions from the total volume of must fermented in tanks equipped and operated with an emissions control system. FER shall be calculated as follows:



## ( ) CCCE

x lb 2,000 ton 1

x gal 1,000 EF Q FER ×

=

Where,

FER = Fermentation Emission Reduction

Q = Volume of must, in gallons, f ermented into red wine or white wine

in the controlled tank

EF = Emissions Factor for the type of wine being fermented in the

controlled tank. EF equals 6.2 lb for red wine, and 2.5 lb for white

wine

CCCE = Combined Capture and Control Efficiency of the VOC emissions

control system

3.17 Fermenter: any tank used to ferment must into wine.

3.18 Gas Leak: a reading in excess of 1,000 ppmv, above background, measured on a portable hydrocarbon detection instrument that is calibrated with methane.

3.19 Ga s

- Tight: a condition without a gas leak.

3.20 Higher Heating Value (hhv): the total heat liberated per mass of fuel burned (Btu per pound), when fuel and dry air at standard conditions undergo complete combustion and all resulting products are brought t o the standard states at

standard conditions.

3.21 Must: any unfermented juice or mixture of juice, pulp, skins, and seeds prepared from grapes or other fruit. Must fermented to produce white wines is consideredSJVUAPCD 4694

- 4 12/15/2005 to be juice. Must fermented to produce r ed wines is considered to be a mixture of juice and solids, such as pulp, skins, and seeds.

3.22 Operator: includes but is not limited to any person who leases, supervises, or operates equipment, in addition to the normal meaning of ownership.

3.23 Pote

ntial To Emit: as defined in District Rule 2201 (New and Modified Stationary Source Review Rule).

3.24 Red Wine: any wine produced by a process that separates the wine from the must solids (skins, pulp, seeds) after fermentation begins.

3.25 Required A nnual Emissions Reductions (RAER): the sum of all emission reductions rounded to the nearest 0.1 ton, achieved by the operator during the calendar year. Required Annual Emissions Reductions shall be calculated as
follows:

∑ ∑ ∑ + + = DOER

CER FER RAER

Where,

RAER = Required Annual Emissions Reductions



# S FER = Sum of all Fermentation Emission Reductions from controlled wine

fermenters in operation at the winery during the calendar year



# S CER = Sum of all Certified Emission Reductions obtained by the operator

during the calendar year



# S DOER = Sum of all District Obtained Emission Reductions achieved through

payment of Air Quality Impact Mitigation Fees for the calendar year

3.26 Stationary Source: as defined in District Rule 2201 (New and Modified Stationary Source Review Rule).

3.27 Storage Tank: any container having an internal volume greater than 250 gallons,

used to hold wine.

3.28 Surplus: emission reductions which have not been relied upon or required by any local, state, or federal permit, rule, reg ulation, law, ordinance, or approved air quality plan.

3.29 Tank: any vessel, with a volume greater than 250 gallons, used as a fermenter or as a storage tank.SJVUAPCD 4694

- 5 12/15/2005

3.30 Time Of Use: the date on which an emission reduction is received by the District

in a w inery’s Three

- year Compliance Plan pursuant to Section 6.1, or Annual Compliance Demonstration pursuant to Section 6.3.

3.31 Uncontrolled Fermentation Emissions (UFE): the VOC emissions that occur in a calendar year from the fermentation of must before e mission mitigation or use of an emissions control system. Uncontrolled Fermentation Emissions shall be
calculated as follows:



## ( ) ( )

lb 2,000 ton 1

gal 1,000 lb

2.5 gal/yr Q lb 6.2 gal/yr Q

× × + ×

= white red UFE

Where,

UFE = Uncontrolled Fermentation Emissions

Q red = Total gallons of must fermented to produce re d wine during the calendar year

Q white = Total gallons of must fermented to produce white wine during the calendar year

3.32 US EPA: the United States Environmental Protection Agency.

3.33 Volatile Organic Compound (VOC): as defined in Rule 1020 (Defi nitions).

3.34 White Wine: any wine produced by a process that separates the juice from the must solids (skins, pulp, seeds) before fermentation begins.

3.35 Wine: the liquid product obtained from fermented must.

3.36 Winery: a facility used to produ ce and/or store wine.

3.37 Winery Premises: a property that is contiguous to or adjacent to the winery, and that is under the ownership and control of the winery operator.

4.0 Exemptions

4.1 Except for recordkeeping requirements specified in Section 6. 4.4, this rule shall not apply to any winery which has a BFE of less than 10 tons per year, or is limited by a District permit condition to a Potential To Emit of less than 10 tons
VOC emissions from fermentation.

4.2 Section 5.2 shall not apply to storag e tanks constructed primarily of concrete or
wood.SJVUAPCD 4694

- 6 12/15/2005

5.0 Requirements

5.1 Fermentation Tanks

Operators of any winery shall achieve Required Annual Emissions Reductions (RAER) equal to at least 35% of the winery’s Baseline Fermentation Emissions
(BFE).

5. 2 Storage Tanks

Operators of any wine storage tank having an internal volume equal to or greater than 5,000 gallons shall comply with all of the following requirements when storing wine:

5.2.1 The tank shall be equipped and operated with a pressure

- vacuu m relief valve meeting all of the following requirements:

5.2.1.1 The pressure

- vacuum relief valve shall operate within 10% of

the maximum allowable working pressure of the tank,

5.2.1.2 The pressure

- vacuum relief valve shall operate in accordance

with the manufacturer’s instructions, and

5.2.1.3 The pressure

- vacuum relief valve shall be permanently labeled

with the operating pressure settings.

5.2.1.4 The pressure

- vacuum relief valve and storage tank shall remain

in a gas

- tight condition except when t he operating pressure of the tank exceeds the valve set pressure. A gas

- tight condition shall be determined by measuring the gas leak in accordance with the procedures in EPA Method 21.

5.2.2 The temperature of the stored wine shall be maintained at or b elow 75 o

Fahrenheit.

5.2.2.1 Temperature of the stored wine shall be determined and

recorded at least once per week.

5.2.2.2 For each batch of wine, operators shall achieve the storage

temperature of 75 o F or less within 60 days after completing

fermentat ion.

6.0 Administrative Requirements

6.1 Three

- year Compliance PlanSJVUAPCD 4694

- 7 12/15/2005 By no later than December 1, 2006, and every three years thereafter, each winery operator subject to the requirements of Section 5.1 shall submit to the District, a

Three

- Year Complianc

e Plan that demonstrates compliance with the applicable requirements of this rule for each year of the applicable compliance period. The

Three

- year Compliance Plan shall include the following information:

6.1.1 Name and address of the winery.

6.1.2 Name , title, and contact information for the operator and the operator’s signature certifying the accuracy of all information presented in the Three

Year Compliance Plan.

6.1.3 Calculation of the BFE, and the volumes of red wine and white wine

fermented at th

e winery for each year of the Baseline Period. For the
Three

- Year Compliance Plan due December 1, 2006, the Baseline Period shall be the years 2003, 2004, and 2005.

6.1.4 Calculation of the RAER to be achieved for each year covered by the

Three

- year Comp liance Plan. For the Three

- Year Compliance Plan due pursuant to section 6.1, the compliance period shall be for the three

- year period following the Plan submittal due date.

6.1.5 Demonstration of how the operator will achieve the RAER necessary to

satisf y Section 5.1, using any combination of the following compliance options:

6.1.5.1 Fermentation Emission Reduction (FER): Reductions of VOC

emissions from wine fermentation. For each FER source the

Three

- Year Compliance Plan shall include the following

in formation:

6.1.5.1.1 Calculation of FER for each controlled

fermentation tank, identified by a Permit To Operate number. FER shall be calculated for the annual throughput of each controlled fermenter using the following:



## ( ) CCCE

x lb 2,000 ton 1

x gal 1,000 EF Q FER ×

=

Where,

FER = Fermentation Emission ReductionSJVUAPCD 4694

- 8 12/15/2005 Q = Volume of must, in gallons, fermented

into red wine or white wine in the

controlled tank

EF = Emissions Factor for the type of wine

being fermented in the controlled tank. EF equals 6.2 lb for red wine, and 2.5

lb for white wine

CCCE = Combined Capture and Control

Efficiency of the VOC emissions control system

6.1.5.1.2 Reductions in annual emissions from wine

fermentation resulting from changes in production
volumes shall not be considered FER or result in

CE R.

6.1.5.2 Certified Emission Reductions (CER): Reductions in surplus

emissions from mobile, area, or stationary sources.

6.1.5.2.1 CER shall have an emissions reduction duration

equal to the approved life of the emission reduction activity, provided that the CER is continuously committed to the District within any operator’s Three

- year Compliance Plan and the CER is achieved consistent with the plan.

6.1.5.2.2 An emission reduction activity that loses CER

status, for any reason, may be resubmitted to the
District for re

- approval. The emission reduction will be evaluated at the time of use, without consideration of previous CER status.

6.1.5.2.3 For each CER source the Three

- Year Compliance

Plan shall include the following information:

6.1.5.2.3.1 D etails of the CER to be

controlled, including: starting date and duration of the CER; emissions reductions to be achieved per unit of activity; technical information demonstrating that the

emissions reduction meets the definition of CER; and a pl an forSJVUAPCD 4694

- 9 12/15/2005 monitoring all emissions

reductions.

6.1.5.2.3.2 The Permit To Operate number for

permitted sources of CER. The

CER shall be made enforceable as one or more permit conditions that establish the emission unit’s daily
emissions limitation.

6.1.5.2. 3.3 A legally binding contract for non

permitted sources of CER. This rule is part of the San Joaquin Valley portion of the California State Implementation Plan. Each contract entered into pursuant to this rule shall be federally

enforceable under Sectio n 304 of the Federal Clean Air Act, 42

U.S.C. 7604. The CER shall be made enforceable by a legally binding contract between the operator of the winery, the operator of the emissions source, and the

District. All contracts executed to comply with the prov

isions of this rule shall contain adequate monitoring, recordkeeping, and reporting requirements to demonstrate that the required
emissions reduction and the applicable performance standards are achieved during the Emission

Reduction Duration.

6.1.5.2.3.4 If the emission source operates

exclusively on the Winery Premises during the compliance period, the CER shall be offset at a ratio of 1.0 ton CER per 1.0 ton of

fermentation VOC emissions.

6.1.5.2.3.5 If the emission source is not

operated exclusively on the Winery Premises during the compliance period, the CER shall be offset at aSJVUAPCD 4694

- 10 12/15/2005 ratio of 1.2 ton CER per 1.0 ton of

fermentation VOC emissions.

6.1.5.3 District Obtained Emissions Reductions (DOER) obtained by

payments to the District Air Quality Impact Mitigation Fund (AQIMF) for a Three

- Year Compliance Plan shall include the following information:

6.1.5.3.1 The amount of requested DOER. DOER shall be

calculated as follows:

∑ ∑

= FER

- CER

- RAER DOER

Where,

DOER = The amount of District Obtained

Emiss ion Reductions.

RAER = 35% of the operator’s Baseline

Fermentation Emissions.



## S CER = Sum of all CER to be obtained by the

operator.



## S FER = Sum of all FER to be achieved by the

operator.

6.1.5.3.2 The payment amount for DOER shall be an

amount sufficien t to cover the District’s costs of obtaining emission reductions having an Emission Reduction Duration (ERD) of three years in aggregate, plus an administrative fee.

6.1.5.3.3 Payment shall calculated as follows:

AF x FR x DOER AQIMF =

Where,

AQIMF = Air Quality Impact Mitigation

Fund payment.

DOER = District Obtained Emissions

Reductions.SJVUAPCD 4694

- 11 12/15/2005 FR = Fund Rate. As of January 1, 2006,

the Fund Rate is established at $11,778 per ton.

AF = District’s administrative fee. As of

January 1, 2006, the administr ated
fee is established at 1.04.

6.1.5.3.4 Beginning January 1, 2007, the Fund Rate and the

administrative fee shall be established by the
APCO in accordance with Section 6.5.

6.1.5.3.5 Payment of DOER and administrative fees shall

be made to the Distric t no later than March 1, of the first year in the applicable compliance period.
For the Three

- Year Compliance Plan due December 1, 2006, the payment of DOER and

administrative fees shall be made no later than March 1, 2007.

6.1.6 Emission reductions achi eved in excess to RAER may not be banked or credited for use to satisfy RAER requirements in any year other than the year of their generation.

6.1.7 New Source Review Emission Reduction Credits are not eligible for use to satisfy RAER requirements.

6.1.8 For fermentation tanks subject to emission controls from New Source Review requirements, the maximum allowable FER shall be the lesser of either the actual emission reduction generated by the NSR review control,
or 35% of the uncontrolled emissions.

6.2 Three

- Year Compliance Plan Verification

By no later than July 1, 2007, and every three years thereafter, winery operators
shall submit to the District a Three

- Year Compliance Plan Verification that

demonstrates that the Three

- Year Compliance Plan element s are in effect. The Compliance Plan Verification shall include the following information:

6.2.1 Name and address of the winery.

6.2.2 Name, title, and contact information for the operator, and the operator’s signature certifying the accuracy of all sub mitted information.

6.2.3 Certification that the required control equipment to generate FER are installed and operating consistent with their Permit To Operate conditions.SJVUAPCD 4694

- 12 12/15/2005 6.2.4 Certification stating that the required emissions reduction commitments to

g enerate CER have been implemented.

6.2.5 Certification that AQIMF payments to obtain DOER have been made.

6.3 Annual Compliance Plan Demonstration

By no later than February 1, 2008, and every year thereafter, each winery operator

shall submit to the Dis trict an Annual Compliance Plan Demonstration that shows compliance with the applicable requirements of this rule. The Compliance Plan Demonstration shall include the following information:

6.3.1 Name and address of the winery.

6.3.2 Name, title, and co ntact information for the operator, and the operator’s signature certifying the accuracy of all information presented in the Three

Year Compliance Plan.

6.3.3 Calculation of the Uncontrolled Fermentation Emissions (UFE) for the prior calendar year.

6.3.4 Certification that all CER commitments were met and calculations of the resulting emission reductions.

6.3.5 Certification that all FER controls were installed and operated, and calculations of the resulting emission reductions.

6.3.6 If the UFE is less than or equal to the BFE, the operator shall demonstrate that the RAER is greater than or equal to 35% of the BFE indicated in the
Three

- Year Compliance Plan, for the year covered by the demonstration.

6.3.7 If the UFE is greater than the BFE, the operat or shall demonstrate that the RAER is greater than or equal to 35% of the UFE for the year covered by

the demonstration. If the RAER are less than 35% of the UFE the operator shall identify how they will obtain additional RAER sufficient to satisfy this s ection.

6.3.7.1 Additional RAER may be obtained from any source of FER,

CER or DOER.

6.3.7.2 All additional RAER shall be obtained by April 1 of the year of

the Annual Compliance Demonstration.

6.4 Monitoring and RecordkeepingSJVUAPCD 4694

- 13 12/15/2005 Commencing January 1, 200 7, the following records shall be maintained, retained

on

- site for a minimum of five years, and made available to the APCO upon

request:

6.4.1 For each fermentation batch, operators shall record the following information by Permit To Operate number and by wine type, stated as
either red wine or white wine:

6.4.1.1 Total gallons of must fermented,

6.4.1.2 Uncontrolled Fermentation Emissions, and

6.4.1.3 Fermentation Emission Reductions.

6.4.2 For each storage tank, operators shall record the following i nformation on a weekly basis:

6.4.2.1 Total gallons of wine contained in the tank, and

6.4.2.2 Maximum temperature of the stored wine.

6.4.3 Operators using CER to mitigate fermentation emissions shall perform all monitoring and recordkeeping, as establ ished in their approved Three

Year Compliance Plan, and shall maintain all records necessary to demonstrate compliance.

6.4.4 Operators claiming exemption pursuant to Section 4.0 shall maintain annual records of the total gallons of red wine and the total gallons of white wine fermented at the winery, and total gallons of wine in storage tanks. Records submitted to the United States Department of Treasury

- Alcohol and Tobacco Tax and Trade Bureau for the purpose of tax determination shall be adequate, prov ided the operator indicates the

volumes of red and white wines fermented.

6.5 Air Quality Impact Mitigation Fund Fees Review

The District shall review the AQIMF and administrative fees on an annual basis to determine their appropriateness and to establis h fee levels that are not less than the District’s cost to obtain emission reductions and administer the program. The APCO may adjust the cost of reductions according to the following process:

6.5.1 An analysis shall be performed that details:

6.5.1.1 T he cost effectiveness of projects funded to date;SJVUAPCD 4694

- 14 12/15/2005 6.5.1.2 The rule effectiveness of achieving the required emission

reductions to date; and

6.5.1.3 The availability of off

- site emission reduction projects.

6.5.2 The APCO shall provide a draft revised co st effectiveness based on the analysis.

6.5.3 The process shall included at least one public workshop.

6.6 Test Methods

6.6.1 Operators of an emission unit identified in a District prohibitory rule shall comply with the test methods specified in the app licable District prohibitory rule.

6.6.2 Operators of an emission unit not identified in a District prohibitory rule shall use the following test methods to quantify emission reductions. Alternative test methods may be used provided they are approved by the APCO, ARB, and US EPA.

6.6.2.1 VOC Control

6.6.2.1.1 The control efficiency of any VOC destruction

device, measured and calculated as carbon, shall be determined by US EPA Method 25, except when the outlet concentration must be below 50 ppm in order to

meet th e standard, in which case US EPA Method 25a may be used.

6.6.2.1.2 US EPA Method 18 may be used in lieu of US EPA

Method 25 or US EPA Method 25A provided the identity and approximate concentrations of the analytes/compounds in the sample gas stream are

known befo re analysis with the gas chromatograph and the gas chromatograph is calibrated for each of the known analytes/compounds to ensure that the

VOC concentrations are neither under

- or over

reported.

6.6.2.2 NOx Control

6.6.2.2.1 Fuel hhv shall be certified b y a third party fuel

supplier or determined by:SJVUAPCD 4694

- 15 12/15/2005 6.6.2.2.1.1 ASTM D 240

- 87 or D 2382

- 88 for liquid hydrocarbon fuels;

6.6.2.2.1.2 ASTM D 1826

- 88 or D 1945

- 81 in

conjunction with ASTM D 3588

- 89 for gaseous fuels.

6.6.2.3 Oxides of nitrogen (ppmv)

– US EPA Method 7E, or ARB

Method 100.

6.6.2.4 Carbon monoxide (ppmv)

– US EPA Method 10, or ARB

Method 100.

6.6.2.5 Stack gas oxygen

– US EPA Method 3 or 3A, or ARB Method

100.

6.6.2.6 NOx Emission Rate (Heat Input Basis)

– US EPA Method 19.

6.6.2.7 Stack gas velocities

– US EPA Method 2.

6.6.2.8 Stack gas moisture content

– US EPA Method 4.

6.7 Compliance Testing

Operators of an emission unit identified in a District prohibitory rule shall comply with the compliance test methods specified in the applicable District prohibitory rule. Operators of an emission unit not identified in a District prohibitory rule shall comply with compliance test requirements approved by the APCO, ARB,
and US EPA.SJVUAPCD 4694

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7.0 Compliance Schedule

Operators shall comply with the applic able requirements of this rule by the dates indicated in Table 1 Rule Compliance Schedule.

Table1 Rule Compliance Schedule

Initial Compliance

Date Subsequent

Compliance Dates Requirement Reference

December 1, 2006 Every three years Submit Three

- year Com pliance Plan to

District Section 6.1

January 1, 2007 Continuously, as appropriate Commencing

monitoring and recordkeeping Section 6.4

March 1, 2007 Every three years Submit AQIMF &
Administrative fees for DOER pursuant to
the Three

- Year Compliance Plan Section

6.1.5.3.4

July 1, 2007 Every three years Submit Three

- year Compliance Plan

Verification Section 6.2

March 1, 2008 Annually Submit Annual Compliance Plan

Demonstration Section 6.3

May 1, 2008 Annually, as

appropriate Provide additional

RAER, as r equired Section 6.3.5.2SJVUAPCD 4694

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