Senate Bill 700 (Florez)

BILL NUMBER: SB 700 CHAPTERED
BILL TEXT

CHAPTER 479
FILED WITH SECRETARY OF STATE SEPTEMBER 22, 2003
APPROVED BY GOVERNOR SEPTEMBER 22, 2003
PASSED THE SENATE SEPTEMBER 11, 2003
PASSED THE ASSEMBLY SEPTEMBER 10, 2003
AMENDED IN ASSEMBLY SEPTEMBER 9, 2003
AMENDED IN ASSEMBLY SEPTEMBER 4, 2003
AMENDED IN ASSEMBLY AUGUST 21, 2003
AMENDED IN ASSEMBLY JULY 14, 2003
AMENDED IN ASSEMBLY JULY 2, 2003
AMENDED IN ASSEMBLY JUNE 26, 2003
AMENDED IN SENATE MAY 13, 2003
AMENDED IN SENATE MAY 7, 2003
AMENDED IN SENATE APRIL 24, 2003

INTRODUCED BY Senators Florez and Sher

FEBRUARY 21, 2003

    An act to amend Section 42310 of, and to add Sections 39011.5, 39023.3, 40724, 40724.5, 40724.6, 40724.7, 40731, 42301.16, 42301.17, 42301.18, and 44559.9 to, the Health and Safety Code, relating to air quality.

LEGISLATIVE COUNSEL'S DIGEST

 SB 700, Florez.  Air quality:  emissions:  stationary sources:
agricultural operations.
   (1) Existing law authorizes the board of every air quality
management district and air pollution control district to establish a
permit system that requires any person that uses certain types of
equipment that may cause the emission of air contaminants to obtain a
permit.  Existing law exempts vehicles and certain types of
equipment from those permit requirements.
   This bill would eliminate that exemption for any equipment used in
agricultural operations in the growing of crops or the raising of
fowl or animals.  To the extent that the bill would increase the
number of permits that a district board, electing to establish a
permit system prior to January 1, 2004, would be required to issue,
the bill would impose a state-mandated local program.
   (2) Existing law defines various terms governing the construction
of air pollution control laws in the state, and authorizes the state
board to revise those definitions to conform with federal law.
   This bill would define the terms "agricultural source of air
pollution" and "fugitive emissions," and would prohibit,
notwithstanding the existing authority, the state board from revising
those definitions.
   (3) The existing federal Clean Air Act requires districts to adopt
local programs for issuing operating permits to major stationary
sources of air pollutants.  The existing act defines a stationary
source as any building, structure, facility, or installation that
emits or may emit any air pollutant.
   This bill would require each district that is designated a serious
federal nonattainment area for an applicable ambient air quality
standard for particulate matter as of January 1, 2004, to adopt,
implement, and submit for inclusion in the state implementation plan,
a rule or regulation requiring best available control measures
(BACM) and best available retrofit control technology (BARCT) for
agricultural practices at agricultural sources of air pollution to
reduce air pollutants from those sources for which that technology is
applicable for agricultural practices by the earliest feasible date,
but not later than January 1, 2006, and would require each district
subject to those requirements to comply with a schedule for public
hearing, adoption, and implementation of the final rule.
   The bill would require each district that is designated a moderate
federal nonattainment area or an applicable ambient air quality
standard for particulate matter as of January 1, 2004, to adopt and
implement control measures necessary to reduce emissions from
agricultural practices by the earliest feasible date, but no later
than January 1, 2007, unless the district determines that those
sources do not significantly cause or contribute to a violation of
state or federal standards.
   The bill would require, by January 1, 2005, the state board to
review all available scientific information and develop a definition
of a "large confined animal facility."
   The bill would require, by July 1, 2006, each district that is
designated as a federal nonattainment area for ozone as of January 1,
2004, to adopt, implement, and submit for inclusion in the state
implementation plan, a rule or regulation that requires the owner or
operator of a large confined animal facility as that term is defined
by the state board to obtain a permit to reduce, to the extent
feasible, emissions of air contaminants from the facility.  The bill
would require the district to perform an assessment of the impacts of
the rule or regulation prior to its adoption.  The bill would
authorize a permitholder to appeal any district determination or
decision related to that permit.
   The bill would require a district that is designated as being in
attainment for the federal ambient air quality standard for ozone as
of January 1, 2004, to adopt the same rule or regulation required of
nonattainment districts, by July 1, 2006, unless the district board
makes a determination that large confined animal facilities will not
contribute to a violation of any state or federal ambient air quality
standard.  The bill would provide the rule or regulation is not
required to be submitted for inclusion into the state implementation
plan.
   The bill would require the California Air Pollution Control
Officers Association, in consultation with the state board and other
interested parties, by January 1, 2005, to develop a clearinghouse of
available control measures and strategies for agricultural sources
of air pollution and emissions of air contaminants from agriculture
operations.
   The additional duties for districts under the bill would impose a
state-mandated local program.
   (4) Existing law establishes the Capital Access Loan Program for
Small Businesses, administered by the California Pollution Control
Financing Authority, which provides loans through participating
financial institutions to entities authorized to conduct business in
the state and whose primary business location is in the state.
   This bill would require the authority to expand the program to
include outreach to financial institutions that service agricultural
interests in the state for the purposes of funding air pollution
control measures.
   (5) Under existing law, any person who violates a rule,
regulation, permit, or order of a district is guilty of a
misdemeanor.  Because this bill would increase the number of people
who are subject to that provision, it would expand the scope of a
crime, thereby imposing a state-mandated local program.
   (6) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for specified reasons.
 
 
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
 
 
  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) Agricultural operations necessary for growing crops or raising
animals are a significant source of directly emitted particulates,
and precursors of ozone and fine particulate matter.  These emissions
have a significant adverse effect on the ability of areas of the
state, including, but not limited to, the San Joaquin Valley, to
achieve health-based state and federal ambient air quality standards.
   (2) Since 1999, the agriculture industry has reduced emissions of
oxides of nitrogen (NOx) by more than 2000 tons per year, emissions
of particulate matter of 10 microns in diameter (PM 10) by more than
500 tons per year, and emissions of volatile organic compounds (VOCs)
from agricultural chemicals by more than 20 percent.  According to
the state board, however, agricultural sources of air pollution still
contribute twenty-six percent of the smog-forming emissions in the
San Joaquin Valley.
   (3) In the San Joaquin Valley, a large portion of the sources of
particulate emissions are areawide sources whose emissions are
directly related to growth in population and the resulting vehicle
miles traveled.  According to the State Air Resources Board, however,
agricultural sources of air pollution account for over fifty percent
of the directly emitted particulate air pollution generated in the
valley during the fall, amounting to over 170 tons per day of
emissions.
   (4) All parties living or operating a business in an area that has
been classified as being a nonattainment area with respect to the
attainment of federal or state ambient air quality standards share
the responsibility of reducing emissions from  air pollutants.
   (5) The federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.)
prohibits the state from adopting emission standards or limitations
less stringent than those established under the federal act,
including limitations on emissions from agricultural sources.
   (6) Division 26 (commencing with Section 39000) of the Health and
Safety Code establishes numerous policies and programs to reduce air
pollutants for the protection of public health.
   (7) The purpose of the act adding this section is to establish a
new set of programs at the state and regional levels to reduce air
emissions from agricultural sources in order to protect public health
and the environment.
   (b) It is therefore the intent of the Legislature to require the
State Air Resources Board and air quality management districts and
air pollution control districts in the state to regulate stationary,
mobile, and area sources of agricultural air pollution.
  SEC. 2.  Section 39011.5 is added to the Health and Safety Code, to
read:
   39011.5.  (a) "Agricultural source of air pollution" or
"agricultural source" means a source of air pollution or a group of
sources used in the production of crops, or the raising of fowl or
animals located on contiguous property under common ownership or
control that meets any of the following criteria:
   (1) Is a confined animal facility, including, but not limited to,
any structure, building, installation, barn, corral, coop, feed
storage area, milking parlor, or system for the collection, storage,
treatment, and distribution of liquid and solid manure, if
domesticated animals, including, but not limited to, cattle, calves,
horses, sheep, goats, swine, rabbits, chickens, turkeys, or ducks are
corralled, penned, or otherwise  caused to remain in restricted
areas for commercial agricultural purposes and feeding is by means
other than grazing.
   (2) Is an internal combustion engine used in the production of
crops or the raising of fowl or animals, including, but not limited
to, an engine subject to Article 1.5 (commencing with Section 41750)
of Chapter 3 of Part 4 except an engine that is used to propel
implements of husbandry, as that term is defined in Section 36000 of
the Vehicle Code, as that section existed on January 1, 2003.
Notwithstanding subdivision (b) of Section 39601, the state board may
not revise this definition for the purposes of this section.
   (3) Is a Title V source, as that term is defined in Section
39053.5, or is a source that is otherwise subject to regulation by a
district pursuant to this division or the federal Clean Air Act (42
U.S.C. Sec. 7401 et seq.).
   (b) Any district rule or regulation affecting stationary sources
on agricultural operations adopted on or before January 1, 2004, is
applicable to an agriculture source.
   (c) Nothing in this section limits the authority of a district to
regulate a source, including, but not limited to, a stationary source
that is an agricultural source, over which it otherwise has
jurisdiction pursuant to this division, or pursuant to the federal
Clean Air Act (42 U.S.C. Sec. 7401 et seq.) or any rules or
regulations adopted pursuant to that act that were in effect on or
before January 1, 2003, or to exempt an agricultural source from any
requirement otherwise applicable under Sections 40724 or 42301.16,
based upon a finding by the district in a public  hearing that the
aggregate emissions from that source do not exceed a de minimus level
of more than one ton of particulate matter, nitrogen oxides or
volatile organic compounds per year.
  SEC. 3.  Section 39023.3 is added to the Health and Safety Code, to
read:
   39023.3.  "Fugitive emissions" mean those emissions that cannot
reasonably pass through a stack, chimney, vent, or other functionally
equivalent opening.  Notwithstanding subdivision (b) of Section
39601, the state board may not revise this definition for the
purposes of this section.
  SEC. 4.  Section 40724 is added to the Health and Safety Code, to
read:
   40724.  (a) Each district that is designated as a serious federal
nonattainment area for an applicable ambient air quality standard for
particulate matter as of January 1, 2004, shall adopt, implement,
and submit for inclusion in the state implementation plan, a rule or
regulation requiring best available control measures (BACM) for
sources for which those measures are applicable and best available
retrofit control technology (BARCT)  to reduce air pollutants from
sources for which that technology is applicable for agricultural
practices, including, but not limited to, tilling, discing,
cultivation, and raising of animals, and for fugitive emissions from
those agricultural practices a manner similar to other source
categories by the earliest feasible date, but not later than January
1, 2006.  The rule or regulation shall also include BACM and BARCT to
reduce precursor emissions in a manner commensurate to other source
categories that the district show cause or contribute to a violation
of an ambient air quality standard.  Each district that is subject to
this subdivision shall comply with the following schedule with
respect to the rule or regulation imposing BACM and BARCT:
   (1) On or before September 1, 2004, notice and hold at least one
public workshop for the purpose of accepting public testimony on the
proposed rule or regulation.
   (2) On or before July 1, 2005, adopt the final rule or regulation
at a noticed public hearing.
   (3) On or before January 1, 2006, commence implementation of the
rule or regulation.
   (b) Nothing in this section shall delay or otherwise affect any
action taken by a district to reduce emissions of air contaminants
from agricultural sources, or any other requirements imposed on a
district or a source of air pollution pursuant to the federal Clean
Air Act (42 U.S.C. Sec. 7401 et seq.).
   (c) In adopting a rule or regulation pursuant to this section, a
district shall do all of the following:
   (1) Ensure the size and duration of use of an internal combustion
engine subject to BARCT pursuant to this section is commensurate to
the size and duration of use of internal combustion engines subject
to regulation by a district or the state board regulated at other
stationary sources.
   (2) Ensure that BARCT established pursuant to this section for an
internal combustion engine is similar to BARCT for other stationary
source engines subject to regulation by a district or the state
board.
   (3) Ensure that the cost-effectiveness of BARCT for an internal
combustion engine subject to this section is similar to the
cost-effectiveness of BARCT for other internal combustion engines
subject to regulation by a district or the state board.
   (4) Compare the cost-effectiveness of BARCT for an internal
combustion engine subject to this section to the list of available
and proposed control measures prepared pursuant to Section 40922.
   (5) Adopt control measures pursuant to this section in order of
their cost-effectiveness, unless a district determines that a
different order of adoption is necessary due to the enforceability,
public acceptability, or technological feasibility of a given control
measure, or to expeditiously attain or maintain a national or state
ambient air quality standard.
   (6) Except as otherwise provided under this section, ensure that
any rule or regulation adopted pursuant to this section complies with
all applicable requirements of this division, including, but not
limited to, any applicable requirements established pursuant to
Sections 40703, 40727, 40728.5, and 40920.6.
   (7) Hold at least one public meeting that is conducted at a time
and location that the district determines is convenient to the public
at which the district reviews the comparison prepared pursuant to
paragraph (4).
   (d) Nothing in this section limits the authority of a district to
regulate a source including, but not limited to, a stationary source
that is an agricultural source over which it otherwise has
jurisdiction pursuant to this division or the federal Clean Air Act
(42 U.S.C. Sec. 7401 et seq.) or any rules or regulations adopted
pursuant to that act.  Nothing in this section shall delay or
otherwise affect any action taken by a district to reduce emissions
of air contaminants from agricultural sources, or any other
requirements imposed upon a district or a source of air pollution
pursuant to the federal Clean Air Act.  This section may not be
interpreted to delay or otherwise affect the adoption,
implementation, or enforcement of any measure that was adopted, or
included in a rulemaking calendar or air quality implementation plan
that was adopted, by the district prior to January 1, 2004.
  SEC. 5.  Section 40724.5 is added to the Health and Safety Code, to
read:
   40724.5.  (a) By the earliest feasible date, but no later than
January 1, 2007, each district that is designated a moderate federal
nonattainment area for an applicable ambient air quality standard for
particulate matter as of January 1, 2004, and that is not subject to
the requirements of Section 40724, shall adopt and implement control
measures necessary to reduce emissions from agricultural practices,
including, but not limited to, tilling, discing, cultivation, and
raising of animals, and from fugitive emissions in a manner similar
to other source categories from those activities by the earliest
feasible date.  Control measures adopted and implemented pursuant to
this section shall also be implemented by the district to reduce
precursor emissions in a manner commensurate to other source
categories that the district show cause or contribute to a violation
of an ambient air quality standard.
   (b) A district is not required to adopt and implement control
measures pursuant to this section if it determines in a public
hearing that agricultural practices do not significantly cause or
contribute to a violation of state or federal standards.
   (c) In adopting a rule or regulation pursuant to this section, a
district shall do all of the following:
   (1) Ensure the size and duration of use of an internal combustion
engine subject to BARCT pursuant to this section is commensurate to
the size and duration of use of internal combustion engines subject
to regulation by a district or the state board regulated at other
stationary sources.
   (2) Ensure that BARCT established pursuant to this section for an
internal combustion engine is similar to BARCT for other stationary
source engines subject to regulation by a district or the state
board.
   (3) Ensure that the cost-effectiveness of BARCT for an internal
combustion engine subject to this section is similar to the
cost-effectiveness of BARCT for other internal combustion engines
subject to regulation by a district or the state board.
   (4) Compare the cost-effectiveness of BARCT for an internal
combustion engine subject to this section to the list of available
and proposed control measures prepared pursuant to Section 40922.
   (5) Adopt control measures pursuant to this section in order of
their cost-effectiveness, unless a district determines that a
different order of adoption is necessary due to the enforceability,
public acceptability, or technological feasibility of a given control
measure, or to expeditiously attain or maintain a national or state
ambient air quality standard.
   (6) Except as otherwise provided under this section, ensure that
any rule or regulation adopted pursuant to this section complies with
all applicable requirements of this division, including, but not
limited to, any applicable requirements established pursuant to
Sections 40703, 40727, 40728.5, and 40920.6.
   (7) Hold at least one public meeting that is conducted at a time
and location that the district determines is convenient to the public
at which the district reviews the comparison prepared pursuant to
paragraph (4).
   (d) Nothing in this section limits the authority of a district to
regulate a source including, but not limited to, a stationary source
that is an agricultural source over which it otherwise has
jurisdiction pursuant to this division or the federal Clean Air Act
(42 U.S.C. Sec. 7401 et seq.) or any rules or regulations adopted
pursuant to that act.  Nothing in this section shall delay or
otherwise affect any action taken by a district to reduce emissions
of air contaminants from agricultural sources, or any other
requirements imposed upon a district or a source of air pollution
pursuant to the federal Clean Air Act.  This section may not be
interpreted to delay or otherwise affect the adoption,
implementation, or enforcement of any measure that was adopted, or
included in a rulemaking calendar or air quality implementation plan
that was adopted, by the district prior to January 1, 2004.
   (e) Nothing in this section shall delay or otherwise affect any
action taken by a district to reduce emissions of air contaminants
from agricultural sources, or any requirements imposed on a district
or a source of air pollution pursuant to the federal Clean Air Act
(42 U.S.C. Sec. 7401 et seq.).
  SEC. 6.  Section 40724.6 is added to the Health and Safety Code, to
read:
   40724.6.  (a) On or before July 1, 2005, the state board shall
review all available scientific information, including, but not
limited to, emissions factors for confined animal facilities, and the
effect of those facilities on air quality in the basin and other
relevant scientific information, and develop a definition for the
source category of a "large confined animal facility" for the
purposes of this section.  In developing that definition, the state
board shall consider the emissions of  air contaminants from those
sources as they may affect the attainment and maintenance of ambient
air quality standards.
   (b) Not later than  July 1, 2006, each district that is designated
as a federal nonattainment area for ozone as of January 1, 2004,
shall adopt, implement, and submit for inclusion in the state
implementation plan, a rule or regulation that requires the owner or
operator of a large confined animal facility, as defined by the state
board pursuant to subdivision (a), to obtain a permit from the
district to reduce, to the extent feasible, emissions of air
contaminants from the facility.
   (c) A district may require a permit for a large confined animal
facility with actual emissions that are less than one-half of any
applicable emissions threshold for a major source in the district for
any air contaminant, including, but not limited to, fugitive
emissions in a manner similar to other source categories, if prior to
imposing that requirement the district makes both of the following
determinations in a public hearing:
   (1) A permit is necessary to impose or enforce reductions in
emissions of air pollutants that the district show cause or
contribute to a violation of a state or federal ambient air quality
standard.
   (2) The requirement for a source or category of sources to obtain
a permit would not impose a burden on those sources that is
significantly more burdensome than permits required for other similar
sources of air pollution.
   (d) The rule or regulation adopted pursuant to subdivision (b)
shall do all of the following:
   (1) Require the owner or operator of each large confined animal
facility to submit an application for a permit within six months from
the date the rule or regulation is adopted by the district that
includes both of the following:
   (A) The information that the district determines is necessary to
prepare an emissions inventory of all regulated air pollutants
emitted from the operation, including, but not limited to, precursor
and fugitive emissions, using emission factors approved by the state
board in a public hearing.
   (B) An emissions mitigation plan that demonstrates that the
facility will use reasonably available control technology in moderate
and serious nonattainment areas, and best available retrofit control
technology in severe and extreme nonattainment areas, to reduce
emissions of pollutants that contribute to the nonattainment of any
ambient air quality standard, and that are within the district's
regulatory authority.
   (2) Require the district to act upon an application for permit
submitted pursuant to paragraph (1) within six months of a completed
application, as determined by the district.
   (3) Require the owner or operator to implement the plan contained
in the permit approved by the district, and shall establish a
reasonable period, of not more than three years, after which each
permit shall be reviewed by the district and updated to reflect
changes in the operation or the feasibility of mitigation measures.
The updates required by this paragraph are not required to be
submitted for inclusion into the state implementation plan.
   (4) Establish a reasonable compliance schedule for facilities to
implement control measures within one year of the date on which the
permit is approved by the district, and shall provide for 30 days
public notice and comment on any draft permit.
   (d) Prior to adopting a rule or regulation pursuant to subdivision
(b), a district shall, to the extent data are available, perform an
assessment of the impacts of the rule or regulation.  The district
shall consider the impacts of the rule or regulation in a public
hearing, and make a good faith effort to minimize any adverse
impacts.  The assessment shall include all of the following:
   (1) The category of sources affected, including, but not limited
to, the approximate number of affected sources, and the size of those
sources.
   (2) The nature and quantity of emissions from the category, and
the significance of those emissions in adversely affecting public
health and the environment and in causing or contributing to the
violation of a state or federal ambient air quality standard.
   (3) The emission reduction potential.
   (4) The impact on employment in, and the economy of, the region
affected.
   (5) The range of probable costs to affected sources and
businesses.
   (6) The availability and cost-effectiveness of alternatives.
   (7) The technical and practical feasibility.
   (8) Any additional information on impacts that is submitted to the
district board for consideration.
   (e) Nothing in this section shall delay or otherwise affect any
action taken by a district to reduce emissions of air contaminants
from agricultural sources, or any other requirements imposed on a
district or a source of air pollution pursuant to the federal Clean
Air Act (42 U.S.C. Sec. 7401 et seq.).
   (f) In adopting a rule or regulation pursuant to this section, a
district shall comply with all applicable requirements of this
division, including, but not limited to, the requirements established
pursuant to Section 40703, 40727, and 40728.5.
   (g) A permitholder may appeal any district determination or
decision required by this section pursuant to Section 42302.1, in
addition to any other applicable remedy provided by law.
   (h) Nothing in this section authorizes a district to adopt a rule
or regulation that is duplicative of a rule or regulation adopted
pursuant to Sections 40724 and 40724.5.
   (i) Nothing in this section limits the authority of a district to
regulate a source including, but not limited to, a stationary source
that is an agricultural source over which it otherwise has
jurisdiction pursuant to this division or the federal Clean Air Act
(42 U.S.C. Sec. 7401 et seq.) or any rules or regulations adopted
pursuant to that act.  Nothing in this section shall delay or
otherwise affect any action taken by a district to reduce emissions
of air contaminants from agricultural sources, or any other
requirements imposed upon a district or a source of air pollution
pursuant to the federal Clean Air Act.  This section may not be
interpreted to delay or otherwise affect adoption, implementation, or
enforcement of any measure that was adopted, or included in a
rulemaking calendar or air quality implementation plan that was
adopted, by the district prior to January 1, 2004.
  SEC. 7.  Section 40724.7 is added to the Health and Safety Code, to
read:
   40724.7.  (a) A district that is designated as being in attainment
for the federal ambient air standard for ozone shall adopt a rule or
regulation as described in Section 40724.6 shall fulfill both of the
following conditions:
   (1) The regulation shall be adopted not later than July 1, 2006,
unless a district board makes a determination in a public hearing,
based on substantial scientific evidence in the record, that large
confined animal facilities will not contribute to a violation of any
state or federal ambient air quality standard.
   (2) The regulation may not be submitted for inclusion in the state
implementation plan.
   (b) Nothing in this section shall delay or otherwise affect any
action taken by a district to reduce emissions of air contaminants
from agricultural sources, or any other requirements imposed on a
district or a source of air pollution pursuant to the federal Clean
Air Act (42 U.S.C. Sec. 7401 et seq.).
   (c) In adopting a rule or regulation pursuant to this section, a
district shall comply with all applicable requirements of this
division, including, but not limited to, the requirements established
pursuant to Section 40703, 40727, and 40728.5.
   (d) Nothing in this section authorizes a district to adopt a rule
or regulation that is duplicative of a rule or regulation adopted
pursuant to Section 40724.
   (e) The rule or regulation adopted by a district pursuant to this
section is not required to be submitted for inclusion into the state
implementation plan.
  SEC. 8.  Section 40731 is added to the Health and Safety Code, to
read:
   40731.  In order to assist in the development of the BACM, RACM,
and BARCT measures specified in Sections 40724, 40724.5, and 40724.6,
and to reduce or eliminate emissions of regulated air pollutants and
their precursors, the California Air Pollution Control Officers
Association, in consultation with the state board and other
interested parties, shall, not later than January 1, 2005, develop a
clearinghouse of available control measures and strategies for
agricultural sources of air pollution and emissions from agricultural
operations, including, but not limited to, the following sources:
   (a) Operations that create fugitive dust emissions, including, but
not limited to, discing, tilling, material handling and storage, and
travel on unpaved roads.
   (b) Confined animal facilities, including, but not limited to, any
structure, building, installation, barn, corral, coop, feed storage
area, or milking parlor, including, but not limited to, a system for
the collection, storage, treatment, and distribution of  liquid or
solid manure from domestic animals, including, but not limited to,
cattle, calves, horses, sheep, goats, swine, rabbits, chickens,
turkeys, or ducks, if those animals are corralled, penned, or
otherwise caused to remain in restricted areas for commercial
agricultural purposes, and feeding is by means other than grazing.
   (c) Internal combustion engines used in the production of crops or
the raising of animals or fowl, except an engine that is used to
propel an implement of husbandry, as that term is defined in Section
36000 of the Vehicle Code, as that section existed on January 1,
2003.
   (d) Other equipment, operations, or activities associated with the
growing of crops or the raising of fowl or animals, that emit, or
cause to be emitted, any regulated air pollutant, or any precursor to
any regulated air pollutant.
  SEC. 9.  Section 42301.16 is added to the Health and Safety Code,
to read:
   42301.16.  (a) In addition to complying with the requirements of
this chapter, a permit system established by a district pursuant to
Section 42300 shall ensure that any agricultural source that is
required to obtain a permit pursuant to Title I (42 U.S.C. Sec. 7401
et seq.) or Title V (42 U.S.C. Sec. 7661 et seq.) of the federal
Clean Air Act is required by district regulation to obtain a permit
in a manner that is consistent with the federal requirements.
   (b) Except as provided in subdivision (c), a district shall
require an agricultural source of air pollution to obtain a permit
unless it makes all of the following findings in a public hearing:
   (1) The source is subject to a permit requirement pursuant to
Section 40724.6.
   (2) A permit is not necessary to impose or enforce reductions of
commissions of air pollutants that the district show cause or
contribute to the violation of state or federal ambient air quality
standard.
   (3) The requirement for the source or category of sources to
obtain a permit would impose a burden on those sources that is
significantly more burdensome than permits required for other similar
sources of air pollution.
   (c) Prior to requiring a permit for an agricultural source of air
pollution with actual emissions that are less than one-half of any
applicable emissions threshold for a major source in the district,
for any air contaminant, but excluding fugitive dust, a district shall,
in a public hearing, make all of the following findings:
   (1) The source is not subject to a permit requirement pursuant to
Section 40724.6.
   (2) A permit is necessary to impose or enforce reductions of
emission of air pollutants that the district show cause or contribute
to a violation of a state or federal ambient air quality standard.
   (3) The requirement for a source or category of sources to obtain
a permit would not impose a burden on those sources that is
significantly more burdensome than permits required for other similar
sources of air pollution.
  SEC. 10.  Section 42301.17 is added to the Health and Safety Code,
to read:
   42301.17.  (a) A district may adopt by regulation a program under
which the district does not require a permit to be obtained by an
agricultural source of air pollution that the district may otherwise
require to obtain a permit if the owner or operator of the source has
taken the following actions to reduce emissions from the source:
   (1) Removed all internal combustion engines used in the production
of crops or the raising of fowl or animals, except an engine that is
used to propel implements of husbandry, at the source and replaced
them with engines that meet or exceed the most stringent standards
adopted by the state board and the United States Environmental
Protection Agency for new internal combustion engines.
   (2) Reduced or mitigated emissions from all agricultural
activities, including, but not limited to, tilling, discing,
cultivation, the raising of livestock and fowl, and similar
activities, to a level that the district determines does not cause,
or contribute to, a violation of a state or federal ambient air
standard, toxic air contaminant, or other air emission limitation.
   (3) Reduced or mitigated all emissions from any farm equipment,
underground petroleum fuel tanks, or other similar equipment used in
agricultural activities to a level that the district determines does
not cause or contribute to a violation of a state or federal ambient
air standard, toxic air contaminant, or other air emission
limitation.
   (4) Complied with any other conditions required by state or
federal law or district rule or regulation for the source.
   (b) Subdivision (a) does not apply to those permits required to
be issued pursuant to Title I (42 U.S.C. Sec. 7401 et seq.) or Title
V (42 U.S.C.  Sec. 7661 et seq.).
  SEC. 11.  Section 42301.18 is added to the Health and Safety Code,
to read:
   42301.18.  (a) Any agricultural source that existed prior to
January 1, 2004, that  becomes subject to a permit requirement
pursuant to a district rule or regulation that was adopted prior to
that date shall be permitted as an existing source and not as a new
source.
   (b) Any agricultural source that is an existing source pursuant to
subdivision (a) shall be permitted by the district based upon its
maximum potential to emit air contaminants, to the extent that level
can be determined, as of January 1, 2004.
   (c) A district may not require an agricultural source to obtain
emissions offsets for criteria pollutants for that source if
emissions reductions from that source would not meet the criteria for
real, permanent, quantifiable, and enforceable emission reductions.
  SEC. 12.  Section 42310 of the Health and Safety Code is amended to
read:
   42310.  (a) A permit shall not be required for any of the
following:
   (1) Any vehicle.
   (2) Any structure designed for and used exclusively as a dwelling
for not more than four families.
   (3) An incinerator used exclusively in connection with a structure
described in subdivision (b).
   (4) Barbecue equipment that is not used for commercial purposes.
   (5) (A) Repairs or maintenance not involving structural changes to
any equipment for which a permit has been granted.
   (B) As used in this subdivision, maintenance does not include
operation.
   (b) Nothing in this section shall affect any requirements imposed
on a district or a source of air pollution, including, but not
limited to, an agricultural source, pursuant to the federal Clean Air
Act (42 U.S.C. Sec.  7401 et seq.).
  SEC. 13.  Section 44559.9 is added to the Health and Safety Code,
to read:
   44559.9.  The authority shall expand the Capital Access Loan
Program established by this article to include outreach to financial
institutions that service agricultural interests in the state for the
purpose of funding air pollution control measures.
  SEC. 14.  The provisions of the act adding this section are
severable.  If any provision of this act or its application is held
invalid, that invalidity shall not affect other provisions or
applications that can be given effect without the invalid provision
or application.
  SEC. 15.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because in that regard this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
   In addition, no reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain other costs that may be incurred by a local agency or school
district because a local agency or school district has the authority
to levy service charges, fees, or assessments sufficient to pay for
the program or level of service mandated by this act, within the 
meaning of Section 17556 of the Government Code.