SUMMARY OF AGENDA ITEM:

On November 15, 1996, the South Coast Air Quality Management District (District) adopted its 1997 Air Quality Management Plan (AQMP). The 1997 AQMP is an update to the District s 1994 AQMP, which was incorporated, with revisions, into California's 1994 ozone SIP. The 1994 ozone SIP was approved by the United States Environmental Protection Agency (U.S. EPA) on September 25, 1996.

The primary new element of the 1997 AQMP is an attainment demonstration for the federal PM10 standards. This attainment plan is due to the U.S. EPA by February 8, 1997. The 1997 AQMP also updates the District's ozone attainment demonstrations, post-1996 rate-of-progress demonstrations, and emissions budgets used for federal conformity purposes. In addition, the 1997 AQMP updates the District's carbon monoxide attainment demonstration and conformity emission budgets. Since the District is requesting redesignation to attainment for the federal nitrogen dioxide standard, the 1997 AQMP will serve as the District's maintenance plan for nitrogen dioxide.

Now that the 1997 AQMP has been approved by the Board, it will be forwarded as a SIP revision to the U.S. EPA to meet the requirement for submittal of the PM10 attainment plan. The 1997 AQMP ozone, carbon monoxide, and nitrogen dioxide revisions, while not required, will update the SIP elements for these pollutants to be consistent with the more recent emission inventory data and control strategy used in the PM10 plan. The 1997 AQMP s control strategy is based on the control strategy in the approved 1994 ozone SIP, along with District fugitive dust measures. Some District ozone measures have been revised, delayed, or eliminated based on updated ozone modeling. The state and federal ozone strategies in the approved 1994 ozone SIP were not affected by the Board's approval of the 1997 AQMP.

Testimony from environmental groups urged the Board not to approve the 1997 AQMP, because they believe that the changes to the ozone control strategy, especially the removal of some near-term control measures, are significant. Staff discussed the impacts of the inventory and rulemaking changes on projected emission levels in the South Coast over the next decade. With the combination of changes, are expected to be very close to the levels projected in the 1994 SIP.

Representatives from the regulated communities urged approval of the 1997 AQMP, or had concerns with specific control measures. The Board directed ARB staff to work with District staff to resolve these specific concerns as the measures now move into the rulemaking process.

ORAL TESTIMONY:

Gail Ruderman Feuer                              RDC

V. John White                                         Sierra Club

Tim Carmichael                                       Coalition for Clean Air

Scott Kuhn                                              Communities for a Better Environment

Ron Wilkniss                                           WSPA

John Billheimer                                        Private Consultant

Steven Douglas                                       AAMA

FORMAL BOARD ACTION:  Approved Resolution 97-1 by a vote of 8-1.

RESPONSIBLE DIVISION:  EO/OAQTP

STAFF REPORT:  Yes (23 pages)

SUMMARY OF AGENDA ITEM:

As an important part of Governor Wilson's Regulatory Reform Initiative, the Legislature passed bills in 1993 that expanded economic analysis requirements of proposed regulations. For a consistent implementation of the mandates, Cal/EPA issued a policy document to all Cal/EPA Boards and Departments in December 1996 which explains the Legislative requirements and adds its policy on a comprehensive economic analyses of proposed regulations. The 1996-97 Budget Act created an economics unit housed at the Air Resources Board (ARB) to help implement the Legislative mandates and the Cal/EPA policies.

The ARB has been in the forefront of economic analysis of proposed regulations for many years. The ARB has performed in-house and extramural research on regulatory costs, cost-effectiveness, and impacts of regulations on jobs and businesses. For example, the 1994 State Implementation Plan was analyzed for its impacts on the California economy. Air quality regulation impacts on businesses' decisions to locate or expand in California were also studied. To comply with the mandates, the staff will continue to research regulatory impacts and provide the Board with economic analyses of proposed regulations regarding: creation, elimination or expansion of businesses and jobs in California; highly cost-effective alternatives; risks and benefits of regulations; and costs or savings to local and state governments.

ORAL TESTIMONY:  None

FORMAL BOARD ACTION:  None

RESPONSIBLE DIVISION:  RD

STAFF REPORT:  None

Resolution 97-2 was withdrawn pending further information on the costs of the overhead rate. Resolution 97-3, 97-4, 97-5, 97-6, 97-7, 97-8, 97-10, 97-11, 97-12 and 97-13 were approved by a unanimous vote. Resolution 97-9 was approved by a vote of 7-1, with one abstention.