96-5-1

SUMMARY OF AGENDA ITEM:

ARB staff presented a proposal to add a new section 91400, Title 17, California Code of Regulations (CCR) to incorporate by reference the Criteria for Equipment and Process Precertification (Criteria). Amendments to section 39620 of the Health and Safety Code required the Board to develop a process, as part of ARB's permit streamlining program, to precertify simple, commonly used equipment and processes as being in compliance with applicable air quality rules and regulations.

ORAL TESTIMONY:

Gary Lacy                                               Fulton Boilerworks

FORMAL BOARD ACTION:

Approved Resolution 96-35 by a unanimous vote.

RESPONSIBLE DIVISION:  SSD

STAFF REPORT:  Yes (28 pages)

SUMMARY OF AGENDA ITEM:

The staff proposed that the Board approve the removal of acetone from Category III of the AB 1807 Toxic Air Contaminant Identification List. This list is nonregulatory and includes three categories. Category I consists of "Substances identified as Toxic Air Contaminants by the Air Resources Board, pursuant to the provisions of AB 1807 and AB 2728 and includes all Hazardous Air Pollutants listed in the Federal Clean Air Act Amendments of 1990." Category II consists of "Substances currently under review or nominated for review for identification as Toxic Air Contaminants." Category III consists of "Substances being evaluated for entry into Category II." Removal of acetone from the AB 1807 list will allow its subsequent removal from the AB 2588 Air Toxics "Hot Spots" Program.

In June 1995, the United States Environmental Protection Agency (U.S. EPA) granted a petition to delete acetone from the list of toxic chemicals under section 313 of the Emergency Planning and Community Right-To-Know Act (EPCRA) (60 Fed. Reg. 31,643 (1995)).

In September 1995, the Air Resources Board (ARB) received a petition from the Chemical Manufacturers Association (CMA) citing the U.S. EPA action and requesting ARB to remove acetone from its lists of air toxics.

In evaluating the merits of removing acetone from the AB 1807 List, staff modeled emissions, using conservative assumptions, from three facilities in California that have reported emissions of acetone. The analysis showed that estimated ambient concentrations, should acetone use increase, would be below levels which may pose an acute or chronic health hazard.

The proposed removal, which is consistent with the requirements of the Health and Safety Code, is not expected to result in adverse environmental impacts. This action will allow acetone to be used as a substitute for more hazardous and ozone- depleting substances and will cost-effectively aid in efforts to control emissions of volatile organic compounds.

ORAL TESTIMONY:  None

FORMAL BOARD ACTION:

Approved Resolution 96-36 by a unanimous vote.

RESPONSIBLE DIVISION:  SSD

STAFF REPORT:  Yes (90 pages)

SUMMARY OF AGENDA ITEM:

State law requires the Board to report annually to the Legislature on funding sources of California's air districts with annual budgets larger than one million dollars. The report is to describe the air districts' budgets, budget processes, sources of funding, and the relative contribution of each funding source to air districts' programs.

There were 12 districts with annual budgets greater than one million dollars during fiscal year 1994-95. These are: South Coast, San Francisco Bay Area, San Joaquin Valley, San Diego, Santa Barbara, Sacramento, Monterey Bay, Ventura, Great Basin, Mojave Desert, Yolo-Solano, and San Luis Obispo. Data required for the report were collected from a survey questionnaire and from follow-up consultation with district staff.

Fees charged to stationary sources of air pollution comprised the largest sources of revenue--about 50 percent. Motor vehicle registration fees provided 24 percent; local taxes, State subventions, and federal grants combined provided 14 percent; and miscellaneous sources accounted for 7 percent. Fines and penalties from enforcement activities contributed about 2 percent of total funding.

The largest category of stationary source revenue was the manufacturing and industrial category at 47 percent of total fee revenues. Another significant category was services and commerce (including electric utilities, wholesale and retail trade) at 26 percent.

District programs with the highest expenditures, on a composite basis, were stationary source permitting and enforcement (about 20 percent each), which reflects the districts' primary statutory responsibility to reduce emissions from stationary sources. Air monitoring received about 10 percent of district expenditures, while other programs such as air quality planning, modeling and emissions inventory, transportation, rule development, and public outreach received less than 10 percent each.

ORAL TESTIMONY:  None

FORMAL BOARD ACTION:

Approved the Report for submittal to the Legislature by a unanimous vote.

RESPONSIBLE DIVISION:  EO/OAQTP

STAFF REPORT:  Yes (38 pages)

SUMMARY OF AGENDA ITEM:

Four Innovative Clean Air Technologies (ICAT) proposals were presented to the Board for approval. These proposals address important program needs at ARB, are technically feasible, and have the potential to improve air quality. They also have market potential, could be commercialized within a few years, and could create jobs in California. ICAT applicants and their partners are required to provide matching funds of at least 50 percent of the total project cost. Proposals were evaluated by ARB staff and an advisory committee, which consisted of external reviewers from the private sector and universities.

The following projects were presented to the Board:

     "Zero-VOC Industrial Maintenance Metal Coating" submitted by
      AeroVironment Environmental Services and Adhesive Coating Company
      for $223,002. This project will be a field demonstration and evaluation of a
      zero-VOC coating technology.

     "Dynamically Optimized Recirculation Coupled with Fluidized Bed
      Adsorption to Cost Effectively Control Emissions from Industrial Coating
      and Solvent Operations" submitted by Air Quality Specialists for $236,389.
      The long-term applicability and effectiveness of a fluidized bed and dynamic
      recirculation system will be demonstrated and evaluated during this project.

     "Prototype Demonstration of CHA NOx Removal System for Treatment of
      Stationary Diesel Engine Exhaust" submitted by CHA Corporation for
      $212,676. The CHA NOx control system will be demonstrated and
      evaluated on a 50-hp diesel engine at the CHA Corporation laboratory and
      on 50-hp diesel motor generator set for aircraft ground equipment at
      McClellan Air Force Base.

     "Injector/Intensifier System for Natural Gas Fueling of Transit Bus" submitted
      by Valley Detroit Diesel Allison, Inc. for $250,000. This project will
      demonstrate and evaluate a natural gas injector technology on two transit
      buses.

ORAL TESTIMONY:  None

FORMAL BOARD ACTION:

Approved Resolutions 96-37, 96-38, 96-39, 96-40 by a unanimous vote.

RESPONSIBLE DIVISION:  RD

STAFF REPORT:  None

Proposal No. 2245-193, entitled "Incorporation of Radio Transponders into Vehicular On-Board Diagnostic Systems," submitted by Sierra Research Inc., for a total amount not to exceed $549,994 was held over for a future Board meeting.

SUMMARY OF AGENDA ITEM:

In April, the Board held an informational meeting on the effect of the Board's gasoline and diesel fuel regulations on the supply and price of fuels in California. The purpose of this meeting was to update the Board on supply and price issues, and answer the questions raised by the Board at the April 25, 1996 meeting.

Staff reported that the supply of gasoline and diesel in May and early June had been adequate, due to a combination of increased production and imports. Significant price declines were also reported on the spot and wholesale markets, but only modest declines in retail prices had occurred since the April meeting.

In response to questions on how changes in ARB rules might increase fuel supplies, ARB staff informed the Board that there would only be minor or temporary benefits to making changes to the regulations. Further, changes to the regulations would add uncertainty to the market, which could result in negative effects.

Staff also informed the Board of some of the questions raised by the media concerning cleaner burning gasoline, such as fuel economy, air quality benefits, and test methods. Staff responded to each issue.

The Board directed the staff to continue to work with the California Energy Commission staff to monitor supply, inventory, and price of gasoline and diesel, and provide periodic reports to the Board.

ORAL TESTIMONY:

Jan Speelman                                Automotive Trade Organization of America

RESPONSIBLE DIVISION:  SSD

STAFF REPORT:  None