Board Meeting Summary for June 25, 1998
State of California
AIR RESOURCES BOARD

Summary of Board Meeting
June 25, 1998

Air Resources Board
Board Hearing Room, Lower Level
2020 "L" Street
Sacramento, California



MEMBERS PRESENT: Hons. John D. Dunlap, III, Chairman
Joseph C. Calhoun, P.E.
Mark DeSaulnier
Lynne T. Edgerton, Esq.
William F. Friedman, M.D.
Jack C. Parnell
Barbara Patrick
Sally Rakow
Barbara Riordan
Ron Roberts
AGENDA ITEM #

98-7-1 Public Meeting to Consider an Informational Report on the Children's Health Study

SUMMARY OF AGENDA ITEM:

Staff provided the Air Resources Board with an update on the Children's Health Study which ARB has been sponsoring since 1991. The project is a 10-year study, being conducted by the University of Southern California, examining the effects on children's respiratory health of long-term exposure to criteria air pollutants. The pollutants of interest include ozone, nitrogen dioxide, particulate matter less than 10 microns in diameter (PM10), gaseous acids (nitric and hydrochloric) and fine fraction particulate matter (PM2.5) mass and chemistry. Over the course of the study, nearly 5,000 children from 12 southern California communities will be followed through their high school graduation. During the presentation, staff reviewed the study design and reported on the major accomplishments achieved to date, the status of the contract, the project budget, and early results from this research effort.

ORAL TESTIMONY: None

FORMAL BOARD ACTION: None

RESPONSIBLE DIVISION: RD

STAFF REPORT: No
98-7-2 Public Meeting to Consider an Informational Report on the Innovative Clean Air Technology (ICAT) Program

SUMMARY OF AGENDA ITEM:

Staff presented an update on the ICAT program. The update included a brief description of the program, and a brief status report on the staff's outreach efforts. Staff then introduced three guest speakers who discussed their respective ICAT projects.

Charlie Carlisle, CHA Corporation, discussed the development of the CHA process, a process designed to reduce nitrogen oxides (NOx) and volatile organic compound emissions from small stationary diesel engines. After recently completing their project with a demonstration of their technology at McClellan Air Force Base in Sacramento, CHA is beginning the commercialization phase.

Scott Drennan, Coen Company, provided an overview of their ultra-low NOx, gas-fired burner that addresses the large market sector of industrial burners in California. Coen is beginning their project demonstration phase at a State-operated heating and cooling plant located in downtown Sacramento.

Eddie Huang, AeroVironment Environmental Services, discussed their successful commercialization of a metal coating with zero volatile organic compounds and zero hazardous air pollutants. After recently completing their ICAT project, they are now poised to make a significant impact in the U.S. and global paint and coating market.

ORAL TESTIMONY: None

FORMAL BOARD ACTION: None

RESPONSIBLE DIVISION: RD

STAFF REPORT: No

98-7-3 Consideration of Research Proposals:
The Board approved Resolutions 98-29, 98-30, and 98-31 by unanimous approval.
98-7-4 Public Meeting on Proposed Addendum to the Air Resources Board's 1995 Criteria and Guidelines for the Use of Motor Vehicle Registration Fees

SUMMARY OF AGENDA ITEM:

Staff presented an Addendum to the 1995 Criteria and Guidelines for the Use of Motor Vehicle Registration Fees. The 1995 criteria emphasize cost-effectiveness, implementing air district clean air plans, leveraging other funds, and advancing new technologies. The Addendum was prepared in response to the Board's direction in October 1997. At that time, the Board felt that additional guidance would help to increase emphasis on cost- effectiveness and thereby increase emission reductions from the Motor Vehicle Fee Program. The Addendum makes no changes to the fundamental criteria adopted in 1995, but does clarify how to implement the criteria.

The Addendum was prepared in cooperation with a statewide technical working group of representatives of recipient agencies. It acknowledges the link between leveraging and cost- effectiveness, encourages financial incentives for fleet conversions by local governments, provides for accountability through public consideration of local decision-making criteria, and provides examples on how to design projects for $20,000 per ton or less. An appendix includes examples of projects that have been successfully demonstrated. These include technology-based, as well as trip reduction, projects.

Follow-up tasks for staff include holding technology-based, "good projects" forums in the South Coast; working with CAPCOA to expand the list of example projects; refining analysis tools for recipient agencies; maintaining a clearinghouse of well-designed projects; and convening a working group of South Coast cities, counties and the air district to assume responsibility for an annual "good projects" conference.

A representative from Project Clean Air testified regarding the importance of training and public education in the design of alternative fuel cleaner vehicle projects. In response to this testimony, staff will add language to the Addendum underscoring the importance of training to the success of alternative fueled cleaner vehicle projects and that such training can be funded with Motor Vehicle Registration Fees. Staff from the South Coast Air Quality Management District offered support for the Addendum and requested continued technical assistance to local governments.

ORAL TESTIMONY:

Linda Urata
Project Clean Air

Oscar Abarca
South Coast AQMD

FORMAL BOARD ACTION:

Approved Resolution 98-32 by a unanimous vote.

RESPONSIBLE DIVISION: OAQTP

STAFF REPORT: Yes (53 pages)
98-7-5 Public Meeting to Consider an Update on the New Federal Standards, Regional Haze, and Particulate Matter Forums

SUMMARY OF AGENDA ITEM:

The staff presented an update on the implementation of the new federal standards for ozone and fine particulate matter (PM2.5), as well as the status of proposed federal visibility regulations. California has advocated the need to consider technical feasibility and cost-effectiveness in the implementation of the new standards and the visibility regulations. Although U.S. EPA and Congress have addressed some of the most critical implementation issues, others remain. The ARB staff is continuing to monitor emerging policies to ensure the State's ability to pursue effective air quality programs.

The staff also discussed activities which will improve our technical tools to address the new standards, including ongoing studies. The staff summarized the 10 public forums held in collaboration with local districts to educate participants about particle pollution and solicit input on planned technical work. In those forums, three consistent themes emerged statewide: questions and concerns about the health impacts of particle pollution; prescribed fire; and the need for mobile source controls, especially diesel engine controls. The input from the forums will be incorporated into a technical workplan, which will lay out the scope and schedule for future particulate matter technical work. A draft workplan will be available later this year.

The State's existing ozone plan will form the basis for meeting the new ozone standard as well as the PM2.5 standards. Because ozone and particulate matter share common chemical precursors such as NOx and organic gases, California's existing ozone programs will also reduce fine particulate levels and improve visibility. Although the South Coast and the San Joaquin Valley will violate the new federal PM2.5 standard, other urban areas may be able to avoid federal planning requirements with the help of additional emission reductions from upcoming mobile source regulations, incentive programs, and improved smoke management plans.

ORAL TESTIMONY: None

FORMAL BOARD ACTION: None

RESPONSIBLE DIVISION: OAQTP

STAFF REPORT: No
98-7-6 Public Meeting to Consider a Status Report on Air Pollution Control Enforcement in California

SUMMARY OF AGENDA ITEM:

Jim Morgester, Chief of the Compliance Division, provided an overview of the State's air pollution enforcement program and its cost effectiveness. Enforcement of regulations governing motor vehicle fuels, mobile sources, consumer products, cargo tanks, (Continued) asbestos, and stationary sources were discussed.

ORAL TESTIMONY: None

FORMAL BOARD ACTION: None

RESPONSIBLE DIVISION: CD

STAFF REPORT: No

98-7-7 Public Meeting to Consider a Report to the Legislature Regarding the Application of Penalties for Violations of Motor Vehicle Fuels Regulations

At the Board meeting, the Board approved the Report of the Air Resources Board to the Assembly Committee on Natural Resources, the Assembly Committee on Transportation, the Senate Committee on Criminal Procedure, and the Senate Committee on Transportation, on Violations of State's Clean Fuels Laws.

The report was mandated by Senate Bill 163 (SB 163, Johannassen, stats. 1995, c. 966). SB 163 changed the way penalties are calculated for violations of the state's clean fuels requirements. Before SB 163, the law offered little guidance on the factors to be considered in calculating these penalties. SB 163 required that a variety of factors, including the violator's mental state, the number of days over which the violation extends, and the environmental impact of the violation be considered when penalties are formulated. The report evaluates how the new penalty regime operates in practice, and concludes that SB 163 is accomplishing the goals the Legislature had in mind when the bill was enacted. SB 163 was enacted with a January 1, 1999 sunset date. AB 1944 (Runner) currently under consideration in the Legislature would extend SB 163's sunset date and the committees evaluating AB 1944 will use this report in their deliberations.

ORAL TESTIMONY: None

FORMAL BOARD ACTION:

Approved the report by a unanimous vote.

RESPONSIBLE DIVISION: Office of Legal Affairs

STAFF REPORT: No
98-6-1 Continuation of a Public Hearing to Consider the Appeals of the City of Los Angeles from Order Nos. 041697-05 and 070297-04 of the Great Basin Unified Air Pollution Control District

SUMMARY OF AGENDA ITEM:

This item was a continuation of two appeals considered by the Board at its May 22, 1998 public hearing. The appeals were filed by the City of Los Angeles (City) from two orders issued by the Great Basin Unified Air Pollution Control District (District). Order No. 041697-05 (the fee order) requires the City to pay fees of $1,482,485 to the District, and Order No. 070297-04 (the control measures order) requires the City to implement certain PM-10 control measures on the dry bed of Owens Lake. The control measures consist of a combination of shallow flooding, managed vegetation, and gravel covering.

Both orders were adopted by the District pursuant to Health and Safety Code section 42316(a), which provides that the District may require the City to undertake reasonable measures, including studies, to mitigate the air quality impacts of its activities in the production, diversion, storage and conveyance of water in the Owens Valley area. Section 42316(a) also provides that the District may require the City to pay, on an annual basis, reasonable fees, based on an estimate of the actual costs to the District of its activities associated with the development of the mitigation measures and related air quality analysis with respect to those activities of the City. Finally, section 42316(b) allows the City to appeal any measures or fees imposed by the District to the Air Resources Board (ARB or Board). The ARB is then required, on at least 30 days notice, to conduct an independent hearing on the validity of the measures or reasonableness of the fees which are the subject of the appeal.

The City appealed both the fee order and control measures order to the ARB. The two appeals were initially heard by the Board at its May 22, 1998 public hearing. At this hearing, the Board voted to deny the City's appeal of the fee order. With respect to the City's appeal of the control measures order, the Board voted to continue the matter for one month until the June 25, 1998 public hearing. The Board also encouraged the parties to use this time to reach a mutually acceptable settlement of the outstanding issues.

At the June 25, 1998 public hearing, the Board adopted a written Decision and Findings document to finalize the Board's May 22 decision regarding the fee order. With respect to the control measures order, the City and the District requested the Board to further continue the matter until the Board's July hearing, in order to give the parties additional time to finalize a settlement agreement. The Board responded to this request by further continuing the control measure appeal until the Board's July 30-31 public hearing. In addition, the Board directed the Executive Officer to delay serving on the parties until no earlier than July 30, 1998*, the Decision and Findings document for the fee order. This delay is also intended to give the parties additional time to conclude settlement negotiations.

ORAL TESTIMONY:

S. David Freeman
L.A. Department of Water and Power

Ellen