Implementation of SB 700 (Florez) Seyed Sadredin Director of Permit Services San Joaquin Valley APCD November 4, 2003

SB 700 Summary Removes permit exemption for Agricultural sources Requires controls for PM and PM precursors Requires pollution control and permits for Confined Animal Facilities Offers off-ramps from pollution control and permitting

SB 700 – PM Controls BACM for sources subject to BACM BARCT for sources where technology is applicable Includes tilling, discing, cultivation, and raising of animals Include fugitive emissions Include measures for PM precursors Enforceable rules and regulations

SB 700 – BACM/BARCT Requirements (PM) Serious nonattainment areas for PM: 9/1/04 notice and hold workshop 7/1/05 adopt rules 1/1/06 commence rule implementation Submit for SIP Socioeconomic and cost effectiveness analysis from H&S Code apply

SB 700 – BACM/BARCT Requirements (PM) Moderate nonattainment areas for PM: By 1/1/07 adopt and implement rules required of Serious nonattainment areas Public workshop prior to adoption Not required if finding is made that emissions are not significant Socioeconomic and cost effectiveness analysis from H&S Code apply

SB 700 – BACM/BARCT Requirements (PM) By 1/1/05 CAPCOA to establish a clearinghouse of available control measures Consult with CARB

SB 700 – Permitting Provisions Removes from the State law the permit exemption for ALL agricultural activities Defines “agricultural sources” I.C. Engines (including portable) Confined Animal Facilities Title V Sources Sources already regulated by districts

Title V Implications Federal permits for major sources Title V permits required (overriding provision) 1/1/05 – Title V applications due Issue 1/3 per year and finish by 1/1/07 SB 700 does not change Title V applicability – (Fugitive emissions don’t count except when required by federal regulations) SB 700 does not change timelines Refer to district Title V regs.

New Source Review (NSR) Implications NSR governs permitting of new sources Sources subject to federal Title I must get permits as prescribed under Title I Existing sources are grandfathered (i.e., No BACT & Offsets) No offsets required for sources not qualifying to receive Emission Reduction Credits

“Agricultural sources” as defined by SB 700 Sources with actual emission at or above ½ of the major source thresholds require permits (No rulemaking required) Sources with actual emission below ½ of the major source thresholds CANNOT be permitted unless these findings are made: Not a large CAF subject to permits Permits necessary to enforce reductions Permits not significantly more burdensome Fugitive emissions

Additional Requirements for CAFs 7/1/05 CARB to define Large CAFs 7/1/06 Adopt permitting and mitigation rules for “Large CAFs” 1/1/07 “CAF permit” applications due – district issue permits within 6 months – 30- day public notice Sources to implement mitigation within 1 year Districts review/update permits within 3 years

Additional Requirements for CAFs (cont’d.) Degree of control – RACT (serious and moderate nonattainment) and BARCT (severe and extreme) Attainment areas for Ozone can be exempted with the following finding: Large CAFs do not cause/contribute to a violation of AAQS Attainment areas may not submit for SIP Non-Attainment areas must submit for SIP

Permitting Off-ramps Permits not required Sources with de minimis (1 t/yr) PM10, NOx, or VOC emissions Sources that: Replace I.C. engines with electrical or State/EPA certified Mitigate emissions from all ag activities Mitigate emissions from all ag equipment Require rulemaking – NOT mandatory Available to “Large CAFs”

Permitting Off-ramps (cont’d.) Sources that: Are large CAFs subject to permitting Permit not necessary for reductions Permit burdensome Requires public hearing – NOT mandatory

Permitting Timeline Ag. exemption goes away 1/1/2004 SB 700 does not provide additional time to submit applications SJVACP rules allow 6 months to apply for permits Synchronize Title V and regular permitting timelines

Public Involvement Public Workshops Outreach to affected sources Solicit public/stakeholders suggestions on implementation strategies Solicit input and comments on proposed regulations Public Hearings Business assistance to affected facilities