CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY
AIR RESOURCES BOARD

Embassy Suites Hotel
Queen of the Lake Ballroom
4130 Lake Tahoe Boulevard
South Lake Tahoe, CA

April 8, 1993
9:30 a.m.

AGENDA

Page

93-6-1 Public Hearing to Consider the Adoption of Permit 001
Fee Regulations for Nonvehicular Sources Pursuant
to the California Clean Air Act.

93-6-2 Public Hearing to Consider the Adoption of Fee 070
Regulations Pursuant to the Atmospheric Acidity
Protection Act.

93-6-3 Public Hearing to Consider a Delay in the 130
Implementation Date of the Utility and Lawn and
Garden Engine Emission Regulations.

93-6-4 Public Meeting to Consider a Status Report and 175
Recent Findings on the Lake Tahoe Ambient Air
Quality Standard for Carbon Monoxide.

93-6-5 Public Meeting to Consider Approval of the Carbon 176
Monoxide Air Quality Plan for the Portion of the
El Dorado County Air Pollution Control District
within the Lake Tahoe Air Basin, as Required by
the California Clean Air Act of 1988.

93-6-6 Public Hearing to Consider the Adoption of a 205
Regulation Designating Federal Hazardous Air
Pollutants as Toxic Air Contaminants.

93-6-7 Public Meeting to Consider Research Proposals. 238

ITEM NO.: 93-6-1

Public Hearing to Consider the Adoption of Permit Fee Regulations
for Nonvehicular Sources Pursuant to the California Clean Air
Act.

RECOMMENDATION

The staff recommends that the Board adopt the proposed
regulations for recovery of costs incurred by the Air Resources
Board (ARB) during fiscal year 1993-94 to implement those
provisions of the California Clean Air Act related to
nonvehicular sources.

DISCUSSION

The California Clean Air Act requires the ARB to develop new
programs and to expand existing programs to address the problem
of air pollution in California. To defray the additional costs
to the ARB of implementing programs and activities related to
nonvehicular sources pursuant to the Act, section 39612 of the
Health and Safety Code authorizes the ARB to require districts to
collect fees from the holders of permits for sources which are
located in nonattainment areas and which emit 500 tons or more
per year of any nonattainment pollutant or precursor. The
staff's proposal would implement section 39612 for the fifth year
of the program by requiring districts to collect the fees
authorized by the Act and to transmit the fees to the ARB for
deposit into the Air Pollution Control Fund. Districts would be
required to assess each qualifying facility a fee of
approximately $16.00 per ton of emissions of nonattainment
pollutants and precursors. The proposed fee rate and amounts to
be remitted may be revised at the time of the public hearing if
updated emission data are available at that time.

The staff has developed the proposed fee regulations in
consultation with affected districts. Also, the staff held a
public consultation meeting to which representatives of affected
facilities and districts as well as members of the public were
invited.

SUMMARY AND IMPACTS

Adoption of the proposed regulations is not expected to result in
any adverse health, safety or environmental impacts.

The cost to individual companies ranges from approximately $8,000
for the smallest facility subject to the regulations to
approximately $405,000 for a multi-facility business. No small
businesses have been identified that would be subject to the
fees. There is no significant adverse economic impact on
businesses.

ITEM NO.: 93-6-2

Public Hearing to Consider the Adoption of Regulations Pursuant
to the Atmospheric Acidity Protection Act Fees.

RECOMMENDATION

Staff is recommending adoption of emissions fee regulations for
fiscal year 1993-94.

DISCUSSION

The Legislature, in adopting the Atmospheric Acidity Protection
Act of 1988 (Stats. 1988, ch. 1518, Health and Safety Code
sections 39900-39911), made a finding that the deposition of
atmospheric acidity resulting from other than natural sources is
occurring in various regions of California. The Legislature also
found that the continued deposition of acidity, alone or in
combination with other man-made pollutants and naturally
occurring phenomena, could have potentially significant adverse
effects on public health, the environment and the economy.

The Legislature directed the Board to adopt the implement the
Atmospheric Acidity Protection Program, to determine the nature
and extent of potential damage to public health and the State's
ecosystems, which may be expected to result from atmospheric
acidity. The Legislature also directed the Board to develop
measures that may be needed for the protection of public health
and sensitive ecosystems within the State. To enable the Board
to carry out these activities, the Act authorized the Board to
require the districts, beginning July 1, 1988, to impose
additional variance and permit fees on nonvehicular sources
authorized by permit to emit 500 tons or more per year of either
sulfur oxides or nitrogen oxides. The total amount of funds
collected by additional fees, exclusive of district costs, shall
not exceed $1,500,000 for any fiscal year or the amount
appropriated from State funds by the Legislature for the
Atmospheric Acidity Protection Program, whichever is less.

Proposed adoption of a new section 90621.4, Title 17, California
Code of Regulations, would specify fees applicable for Fiscal
Year 1993-94. The proposed regulations provide for the
collection of fees by the districts and forwarding of the fees to
the Air Resources Board. The regulations would specify that
compliance with the fee requirements shall be based on the
amounts of 1991 emissions as determined by the Board's Executive
Officer on January 29, 1993, and that fees shall be collected
from permitted sources identified after adoption of the
regulations, as having emitted 500 tons or more per year of
sulfur oxides or nitrogen oxides in 1991. The regulations would
also require the collection of fees from permitted sources
identified after January 29, 1993. As of the Public Hearing
Notice date, the proposed fee rate is approximately $8.00 per
ton.

No significant adverse impacts on the environment are anticipated
by the Board's adoption of the proposed emissions fee
regulations.

ITEM NO.: 93-6-3

Public Hearing to Consider a Delay in the Implementation Date of
the Utility and Lawn and Garden Engine Emission Regulations.

RECOMMENDATION

The staff recommends that the Air Resources Board (the ARB or
Board) adopt a delay in the implementation of the utility and
lawn and garden 1994 standards and 1995 quality-audit test
requirements.

DISCUSSION

The California Clean Air Act (CCAA) as codified in Health and
Safety Code Sections 43013 and 43018 grants the ARB authority to
regulate emissions from off-road vehicles and other mobile
sources. The CCAA also requires a 5 percent per year reduction
of carbon monoxide and ozone precursor emissions.

Utility and lawn and garden equipment include lawnmowers,
chainsaws, blowers, string trimmers, generator sets, pumps, and
other equipment powered by small (<25 hp) gasoline and diesel
engines. The staff estimates the 1987 California statewide
emissions inventory from utility and lawn and garden equipment to
be 70 tons per day (tpd) of hydrocarbons (HC), and 495 tpd of
carbon monoxide (CO). These equipment contribute approximately
41 percent of all off-road mobile source HC emissions.

In 1990 the Board approved utility and lawn and garden engine
emission regulations designed to achieve the maximum feasible
emission reductions. Two tiers of exhaust emission standards
were approved for these engines. The first set of standards is
scheduled to be implemented in 1994; staff expects these
standards to be met by improved carburetion and tighter design
tolerances. The second set of standards will go into effect in
1999; staff expects that these levels will require advanced
emission controls. The regulations also include quality-audit,
new engine compliance, warranty, and engine labeling
requirements.

The federal Clean Air Act Amendments of 1990 (CAA) included a
prohibition against state regulation of construction and farm
equipment below 175 horsepower. The Environmental Protection
Agency (EPA) has the responsibility of defining construction and
farm equipment, and it is likely that the final definition will
include some utility and lawn and garden equipment. If so, the
definition will reduce the emission benefits expected from the
utility and lawn and garden equipment regulation. The CAA also
requires that California receive a waiver from EPA prior to
adoption and enforcement of any off-road regulations. To date,
EPA has finalized neither the definition nor the waiver protocol.

The Portable Power Equipment Manufacturers Association filed a
petition citing the uncertainty faced by the small engine
industry and requesting a one-year delay in implementation of the
first tier utility engine regulations. In response to that
petition, the staff is proposing the delay of the first tier
utility and lawn and garden regulations for one year, until
January 1, 1995. The staff is also proposing the delay of
quality-audit testing until January 1, 1996, to maintain the one-year
interval between initial certification and the start of
quality audit testing.

SUMMARY OF IMPACTS OF PROPOSED ACTION

The staff estimates that the proposed action will result in no
change to the statewide utility engine emissions in the year
2010. The staff estimates that the delay will result in lost
emissions benefits of up to 6 tpd HC and 27 tpd CO fro 1994 until
2000, when the staff expects the last of the 1994 engines to
leave the population due to attrition. The delay is not expected
to have any significant negative cost impact on the regulated
equipment.

ITEM NO.: 93-6-4

Public Hearing to Consider a Status Report on ARB-Sponsored
Research Relevant to Review of the Lake Tahoe Basin Carbon
Monoxide Ambient Air Quality Standard.

RECOMMENDATION

Staff recommends that the Board find that the results of Phase I
of the research indicate a statistically significant qualitative
interaction of carbon monoxide and altitude which supports the
need for a separate eight-hour standard for carbon monoxide for
the Lake Tahoe Air Basin, different from the rest of the State.
A second phase of this research with a larger number of sensitive
subjects would be needed to enable the Board to determine
quantitatively the proper level for the standard. The current
standard of six ppm averaged over eight hours should be retained
in the interim to provide an added degree of protection for
persons with coronary artery disease arriving at Tahoe from
locations at or near sea level.

DISCUSSION

The Lake Tahoe Air Basin ambient standard for CO was set in 1976
at a level lower than the corresponding standard for the rest of
the state. This standard protects unacclimated individuals with
coronary artery disease from the greater risk due to the lowered
oxygen availability at higher altitudes. Several years ago an
article was published which noted a calculation error in the
analysis that supported the standard. It was decided that
additional research should be undertaken to verify the need for
the standard and its level. At the January 11, 1990 Board
Hearing on the adequacy of the statewide CO ambient air quality
standards, the Board recommended that such scientific studies be
done. The initial phase of the research has been completed, and
staff will inform the Board of the findings.

SUMMARY AND IMPACTS

The proposed retention of the eight hour Lake Tahoe Air Basin
ambient air quality standard, alone, will have no negative
environmental or economic impacts. Ambient air quality standards
establish the maximum allowable levels of air pollutants,
although they should not be interpreted as permitting or
encouraging the degradation of air quality superior to the
standards. In some cases, specific control measures may be
developed to attain the level of the standard. However, once
standards are attained and maintained, the air quality will be
improved with corresponding benefits to the environment and
public health and welfare.

ITEM NO.: 92-6-5

Public Meeting to Consider Approval of the Carbon Monoxide Air
Quality Plan for the Lake Tahoe Air Basin, as Required by the
California Clean Air Act of 1988.

RECOMMENDATION

Approve the carbon monoxide attainment plan for the Lake Tahoe
Air Basin, with the conditions identified by staff.

DISCUSSION

South Lake Tahoe's carbon monoxide problem is overwhelmingly
motor vehicle based. The plan focuses on the Air Resources
Board's (ARB) motor vehicle and fuels regulations and local
transportation control measures (TCMs). The carbon monoxide plan
was prepared by the Tahoe Regional Planning Agency (TRPA) as a
part of the transportation-air quality plan for the Lake Tahoe
region.

The plan satisfies nearly all of the California Clean Air Act
(Act) requirements. Attainment of the carbon monoxide standard
for the Lake Tahoe Air Basin (6.0 parts per million) is projected
by 1997 based on emission reductions from ARB measures and TCMs.

Staff's evaluation indicates that the plan's attainment
demonstration is generally correct. Staff will provide its
analysis of the attainment demonstration at the April 8, 1993
Board hearing.

The conditions recommended by staff for approval of the plan are:
1) identification of the TCMs which will serve as contingency
measures should attainment not be met by the projected attainment
year; 2) adoption of the Act's required permitting rule by July
1, 1993; and 3) submittal of the required finding that the plan
is a cost-effective strategy for attaining the state carbon
monoxide standard for Lake Tahoe by the earliest practicable
date.

SUMMARY AND IMPACTS

The plan provides for carbon monoxide emission reductions
totaling about 35% through the year 1997. The reductions are
expected to bring the South Lake Tahoe area into attainment for
the carbon monoxide standard by 1997.

ITEM NO.: 93-6-6

Adoption of a Regulation Designating Federal Hazardous Air
Pollutants as Toxic Air Contaminants.

RECOMMENDATION

The Air Resources Board (ARB) staff has two recommendations for
the Board. First, we recommend that the Board adopt the proposed
regulation that identifies the 189 federal hazardous air
pollutants (HAPs) as toxic air contaminants (TACs) as required by
Assembly Bill 2728 (AB 2728). Second, we recommend that the
Board approve the amended Toxic Air Contaminant Identification
List for the TAC program which has the 189 HAPs included into
Category I, "Substances Identified as TACs by the ARB."

DISCUSSION

AB 2728 amends the state's AB 1807 (Tanner, Chapter 1047 statutes
of 1983, Health and Safety Code Sections 39660, et seq.) program
for the identification and control of TACs. It requires the
Board to identify, by regulation, the 189 federal HAPs as TACs
[Health and Safety Code section 39657(b)]. HAPs are toxic
substances listed in section 112(b) of the federal Clean Air Act
[42 USC section 7412(b)]. The United States Environmental
Protection Agency chose these 189 substances because they are
known to have, or may have, adverse effects on human health or
the environment. It should be noted that 18 substances on the
HAPs list have already been identified by the Board as TACs under
AB 1807.

SUMMARY AND IMPACTS

In accordance with AB 2728, we are proposing that the Board
identify the 189 HAPs as TACs through a simple regulation.
Because we also maintain a list of substances showing the status
of compounds on the list, we are also proposing that the Board
approve an updated list reflecting the regulation. The
identification of 189 HAPs as TACs and approval of the amended
Toxic Air Contaminant Identification List are not expected to
result in any adverse impact on the environment or the economy.
Identification alone imposes no compliance costs, alters no
permit condition and affects no fee. Ultimately, the Board's
identification of the 189 HAPs as TACs and the subsequent
analysis of the need to control emissions under the toxic
substance control program may result in the adoption of control
measures by regulation pursuant to Health and Safety Code
sections 39665 and 39666. If, and when, a control measure is
proposed for any of these 189 HAPs, its impact on businesses, and
government will be fully assessed by the ARB and the air
pollution control districts in public forums where the need,
degree, cost and other impacts