Document ID: EPA-R09-OAR-2019-0655-0015
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2020-05-29T04:00Z

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                     REGION IX AIR and RADIATION DIVISION

 

                          Technical Support Document 
                                      for
                       EPA's Clean Air Act Rulemaking
                                    for the
                     California State Implementation Plan
                                       
           San Joaquin Valley Unified Air Pollution Control District
                                       
                Rule 2250, Permit-Exempt Equipment Registration

                              
                           Prepared by: Stanley Tong
                                       

                                   May 2020

RULE IDENTIFICATION  -  

Agency
San Joaquin Valley Unified Air Pollution Control District (SJVUAPCD or District)

SIP Approved Rule
There is no prior version of this rule in the California SIP.

Subject of this TSD
Rule 2250  -  Permit-Exempt Equipment Registration
Adopted  -  October 19, 2006 
Submitted  -  April 30, 2020

BACKGROUND AND RULE SUMMARY

The SJVUAPCD regulates the San Joaquin Valley Air Basin, which is classified as "Extreme" nonattainment for the 2008 and 2015 8-hour ozone national ambient air quality standards (NAAQS),  "Serious" nonattainment for the 1997 and 2006 PM2.5 NAAQS, and "Moderate" nonattainment for the 2012 PM2.5 NAAQS. 40 CFR 81.305. 

SJVUAPCD's staff report for Rule 2250, Permit-Exempt Equipment Registration, states that historically the District focused its emission reduction efforts on equipment and processes that required a District permit, and that enforcement of emission reductions required by the District's rules were assured by these permit requirements.

On October 19, 2006, the District adopted Rule 2250 as an alternative to its traditional permitting process. The District intended this rule to apply to certain sources that were traditionally exempted from its permitting program (e.g., internal combustion (IC) engines located at agricultural operations (Rule 4702, Internal Combustion Engines) and small boilers (Rule 4307, Boilers, Steam Generators, and Process Heaters  -  2.0 MMBtu/hr to 5.0 MMBtu/hr)). 

On June 21, 2018, the District amended Rule 4692, Commercial Charbroiling, to add registration and recordkeeping requirements for certain underfired charboilers that had previously been exempted from District permit requirements. Specifically, Rule 4692, section 5.2.2 now requires owners of underfired charbroilers to register their units pursuant to Rule 2250. 

The District's staff report for Rule 2250 states that traditionally, the enforcement mechanism to ensure emission reductions from sources that are exempted from permit requirements would be to modify District Rule 2020, Exemptions, to require permitting of the exempted sources. The staff report further points out that the traditional permitting process is resource-intensive and contains several components that are not necessary to assure compliance with emission reductions from the sources exempted from the permitting process (e.g., frequent inspections and new source review requirements including best available control technology and emissions offsetting). The Staff Report states that the District concentrated on two main goals for Rule 2250: (1) ensure that emission units comply with all applicable rules and regulations, and (2) minimize workload for the District and affected sources of emissions. 

The District points out that "[t]he registration program will only be available to units that are currently exempt from the District's permitting requirements, but which must meet standards contained in applicable rules and regulations...[Rule 2250] applies to all emission units required to get a [Permit-Exempt Equipment Registration] PEER per rule or regulation." At the time Rule 2250 was adopted, only Rule 4702, Internal Combustion Engines, and Rule 4307, Small Boilers, Steam Generators and Process Heaters  -  2.0 MMBtu/hr to 5.0 MMBtu/hr, were identified for participation in the PEER program. 

More recently, Rule 4692, Commercial Charbroilers, became reliant on the PEER program when Rule 4692 was amended in 2018 to require certain underfired charbroilers, which had previously been exempt from the District's permitting program, to be registered pursuant to Rule 2250. This registration process provides a mechanism to ensure the enforceability of the new recordkeeping requirements that amended Rule 4692 has put in place for these underfired charbroilers. 

Rule 2250 is largely an administrative rule and was developed to assure the enforceability of newly adopted and future rules applicable to equipment that is exempted from obtaining a permit. Although Rule 2250 does not directly result in emission reductions, we consider approval of the rule into the California SIP to be a SIP strengthening action. 

The following is a brief description of key sections in Rule 2250. 

Section 1 Purpose:
1. 	States "The purpose of this rule is to provide affected sources and the District with the necessary administrative mechanisms to determine compliance of permit-exempt equipment with applicable rules and regulations." 

Section 2 Applicability: 
2. 	States "This rule applies to owners or operators of any emissions unit required to obtain a Permit-Exempt Equipment Registration (PEER) by an applicable rule or regulation."

Section 3 Definitions:
3. 	Rule 2250 defines the following key terms.
    a. Existing Emissions Unit  -  an emission unit that has been operated prior to the PEER application date.
    b. Modification  -  Any action that necessitates a change to a valid PEER. Administrative changes shall not be considered modifications.
    c. New Emissions Unit  -  An emission unit that is first operated on or after the PEER application date.
    d. Permit-Exempt Equipment Registration Unit (PEER unit)  -  an emissions unit that has been granted a PEER under District Rule 2250, Permit-Exempt Equipment Registration, and that is operated as part of a stationary source.
    e. Portable PEER Unit  -  a PEER unit displaying a District-issued PEER unit identification tag, and is designed to be and is capable of being carried or moved from one location to another. Indications of portability include, but are not limited to, wheels, skids, carrying handles, dolly, trailer, platform or mounting.

Section 4 Requirements:
4. 	This section requires owners or operators of existing, and new or modified emission units to submit a PEER application. Section 4.3 allows, under specific circumstances, new emissions units that replace a PEER unit to operate prior to submittal of a complete PEER application.

5. 	Rule 2250's staff report states "...most equipment that is eligible for PEER must be certified to meet the applicable emissions requirements." It adds that since engines and boilers must meet the applicable emissions limits in Rules 4702 and 4307, the District is able to provide the flexibility of applying for registration prior to the operation of the equipment in contrast with a traditional permitting program in which an applicant must receive an authority to construct prior to installing and operating the emissions equipment.

6. 	Section 4 covers identification tags for portable PEER units, movement of a stationary PEER from one location to another, transferring PEERs between businesses, and temporary replacement units.

Section 5 PEER Application Content:
7.	This section lists what a complete PEER application must include.

Section 6 PEER Content:
8.	This section lists what each issued PEER must include.

EVALUATION CRITERIA  -  The following criteria were used to evaluate the submitted rule. 

      1.	Enforceability  -  CAA section 110(a)(2)(A) requires SIPs to "include enforceable emission limitations and other control measures, means, or techniques ... as may be necessary or appropriate to meet the applicable requirements of [the CAA]." The Bluebook (Issues Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations, EPA, May 25, 1988, revised January 11, 1990) and the Little Bluebook (Guidance Document for Correcting Common VOC & Other Rule Deficiencies, EPA Region 9, August 21, 2001) were used to help evaluate compliance with the CAA section 110(a)(2)(A) requirement for enforceability. 

      2.	SIP Revisions  -  CAA section 110(l) prohibits the EPA from approving any SIP revision that would interfere with any applicable requirement concerning attainment and reasonable further progress (RFP) or any other applicable requirement of the CAA. In addition, CAA section 193 prohibits the modification of any SIP-approved control requirement in effect before November 15, 1990, in a nonattainment area, unless the modification ensures equivalent or greater emission reductions of the relevant pollutant(s). 
      
EPA EVALUATION  -  A summary of our evaluation of the above criteria follows.

      1. 	Enforceability  -  The rule requirements and applicability are sufficiently clear to ensure that affected sources and regulators can evaluate and determine compliance with Rule 2250 consistently. As discussed above in the background and rule summary section, Rule 2250 is administrative in nature. Our approval of Rule 2250 is a SIP strengthening action that requires owners or operators of any emission units to obtain a Permit-Exempt Equipment Registration when specified by an applicable District rule or regulation. 
      
      2. 	SIP Revisions  -  At the time Rule 2250 was adopted, there were only two prohibitory rules (Rules 4307 and 4702) that required a PEER. Each of these rules required owners of specific equipment, which were exempted from the District's permitting requirements, to register that equipment per Rule 2250. For example,
      
      	Rule 4307, Boilers 2-5 MMBtu/hr, section 6.4 states:
      	"6.4    Equipment Registration Requirement 
      	Except for units that require a Permit to Operate pursuant to Rule 2020 (Exemptions), the operator shall register with the District any unit subject to this rule no later than the applicable date shown in Table 3, in accordance with Rule 2250 (Permit-Exempt Equipment Registration)."
      
      	Rule 4702, IC Engines, section 5.11 states:
      	"5.11 Permit-Exempt Equipment Registration Requirements
      	The operator of an engine used exclusively in agricultural operations shall register such engine pursuant to Rule 2250 (Permit-Exempt Equipment Registration), except for an engine that meets any one of the following conditions:
      
      	5.11.1 The engine is required to have a Permit-to-Operate pursuant to California Health and Safety Code Section 42301.16; or 
      	5.11.2 The engine is not required to comply with Section 5.2 of this rule."
      
      	In 2018, the District amended Rule 4692, Commercial Charbroiling, to require owners of certain underfired charbroilers to register their units pursuant to Rule 2250. 
      
      	Rule 4692, Commercial Charbroilers, section 5.2.2 states:
      	"5.2.2 Underfired Charbroiler Registration Requirements
      	The owner of an underfired charbroiler subject to this rule shall register such underfired  charbroiler pursuant to Rule 2250 (Permit-Exempt Equipment Registration), in lieu of permitting under the requirements of Rule 2010 (Permits Required)."
      
      	Currently, the registration requirements appear to serve simply as a means to ensure the enforceability of certain requirements imposed by other District rules for emission units historically exempted from District permit requirements, and there are no emission control requirements contained in Rule 2250. For example, the registration requirement in Rule 2250 ensures that owners and operators keep certain records regarding their underfired charbroiler operations in accordance with the requirements of Rule 4692 as revised in 2018. Some categories of emission units may still be subject to emission limits contained within a prohibitory rule that cites Rule 2250. Rule 2250 does not relax the District's SIP-approved permit program. 
      
We have determined that our approval of the submittal would comply with CAA sections 110(l) and 193 because the proposed SIP revision would not interfere with any CAA requirements, including requirements for RFP and attainment of the NAAQS, nor would our approval of Rule 2250 relax any pre-November 15, 1990 control requirement in the California SIP.

EPA ACTION  -   

The submitted Rule 2250 strengthens the SIP. The administrative requirements in Rule 2250 do not result in direct emission reductions, but they help the District to enforce emission limits in specific rules, such as Rules 4307 and 4702, that cite Rule 2250, for equipment that is exempted from obtaining a permit. In addition, Rule 2250 supports the enforcement of requirements to register and keep records for certain underfired charbroilers subject to Rule 4692. Rule 2250 meets the requirements of CAA section 110 and part D. Therefore, we recommend approval of Rule 2250 pursuant to CAA section 110(k)(3). 

REFERENCES  -  

 "State Implementation Plans; General Preamble for the Implementation of Title I of the Clean Air Act Amendments of 1990," 57 FR 13498 (April 16, 1992); 57 FR 18070 (April 28, 1992).
 EPA Office of Air Quality Planning and Standards, "Issues Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations," May 25, 1988 (the Bluebook, revised January 11, 1990). 
 EPA Region IX, "Guidance Document for Correcting Common VOC & Other Rule Deficiencies," August 21, 2001, (the Little Bluebook).
 SJVUAPCD Rule 2250, Permit-Exempt Equipment Registration, as adopted on October 19, 2006, and submitted to the EPA by CARB on April 30, 2020, including final staff report, "District Rule 2250 (Permit-Exempt Equipment Registration) District Rule 3155 (Permit-Exempt Equipment Registration Fees)," dated October 19, 2006.
 SJVUAPCD Rule 4692, Commercial Charbroiling, as amended on June 21, 2018, and submitted to the EPA by CARB on November 21, 2018, by letter dated November 16, 2018.
 SJVUAPCD "Rule Action Package for Rule 4692 (Commercial Charbroiling)," dated July 11, 2018, including: Memorandum dated June 21, 2018, from Seyed Sadredin, Executive Director/APCO to SJVUAPCD Governing Board, "RE: ITEM NUMBER 9: ADOPT PROPOSED AMENDMENTS TO DISTRICT RULE 4692 (COMMERCIAL CHARBROILING)," and Attachment C "Final Draft Staff Report, June 21, 2018, Amendments to Rule 4692 (Commercial Charbroiling)."
 SJVUAPCD Rule 4307, Boilers, Steam Generators, and Process Heaters - 2.0 MMBtu/hr to 5.0 MMBtu/hr, as amended on April 21, 2016, and approved into the SIP, 82 FR 37817 (August 14, 2017). 
 SJVUAPCD Rule 4702, Internal Combustion Engines, as amended on November 14, 2013, and approved into the SIP, 79 FR 24029 (April 25, 2016).