State of California
AIR RESOURCES BOARD

Summary of Board Meeting
September 26, 1996

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

MEMBERS PRESENT:  Hons. John D. Dunlap, III, Chairman
                                                 Eugene A. Boston, M.D.
                                                 Joseph C. Calhoun, P.E.
                                                 Lynne T. Edgerton, Esq.
                                                 M. Patricia Hilligoss
                                                 Jack C. Parnell
                                                 Barbara Riordan
                                                 Ron Roberts
                                                 James W. Silva
                                                 Doug Vagim

AGENDA ITEM #

96-7-1




Public Hearing to Consider Amendments to the Air Toxics Hot Spots Fee Regulation for Fiscal Year 1996-97

SUMMARY OF AGENDA ITEM:

The Air Toxics Hot Spots Information and Assessment Act of 1987 requires the Air Resources Board (ARB) to adopt a fee regulation to ensure that costs incurred by the State and air districts to implement and administer the Air Toxics Hot Spots Program are recovered by assessing fees on facilities subject to the requirements of the Act. The fees assessed through this regulation will be used to inventory air toxics emissions, prioritize facilities, prepare risk assessments, review risk assessments, notify the public of potential health risks from exposure to the emissions, and provide guidance to the facilities for reducing the potential risk from exposure to the emissions. The regulation specifically allocates the State's costs among the air districts, and it establishes facility fees for the nine air districts that have requested the ARB to adopt their facility fee schedules.

For Fiscal Year 1996-97, the staff proposed a new method for distributing the State's cost among districts and for calculating fees. Staff proposed to calculate fees for Fiscal Year 1996-97 based on a facility's health risk, as determined by risk assessment results or prioritization scores.

The proposed amendments would exempt low risk facilities, those with prioritization scores of 10.0 or less, and those with scores greater than 10 but health risks less than 1-cancer-per-million, from paying fees. Facilities with scores above these thresholds would pay fees with the fee rate increasing with risk level. The exemption of scores of 10 or less is mandated by the passage of AB 564, which was signed by Governor Wilson in September 1996. The staff also proposed a $2 million budget for Fiscal Year 1996-97 State costs to implement the Air Toxics Hot Spots Program. This is a reduction of approximately $700,000. The Fee Regulation also adopts fee schedules for nine districts.

ORAL TESTIMONY:

Jeff Sickenger                                Western States Petroleum Association

Randolph Brummett                       Brummett and Associates

FORMAL BOARD ACTION:

Approved resolution 96-45 by a unanimous vote.

RESPONSIBLE DIVISION:  TSD

STAFF REPORT:  Yes (69 pages)

96-7-2 Public Hearing to Consider the Amendment and Adoption of Regulations Regarding Stationary Source Test Methods

The staff proposed that six existing stationary source test methods be revised and one new test method be adopted. ARB stationary source test methods are used to determine compliance with ARB and district emission standards, as well as to evaluate the performance of control equipment, and to provide emissions inventory information. The new and revised methods include ARB Method 5 for particulate matter, Method 7 for nitrogen oxides, Method 100 for criteria gases, Method 425 for chromium, Method 429 for polycyclic aromatic hydrocarbons, Method 431 for ethylene oxide, and Method 436 for metals. The proposal was needed to make ARB methods consistent with EPA methods and to improve the quality of source test data.

ORAL TESTIMONY:  None

FORMAL BOARD ACTION:

Approved Resolution 96-46 by a unanimous vote.

RESPONSIBLE DIVISION:  MLD

STAFF REPORT:  Yes (404 pages)

96-7-3 Public Hearing to Consider Amendments to the Hydrocarbon and Oxides of Nitrogen Emission Standards for 1995 and Later Utility and Lawn and Garden Equipment Engines Used in Snow Throwers and Ice Augers, and to the Carbon Monoxide Standard for 1996-1998 Off-Highway Recreational Vehicles and Engines

SUMMARY OF AGENDA ITEM:

Staff recommended that the Board adopt the proposed amendments to the "California Exhaust Emission Standards and Test Procedures for 1995 and Later Utility and Lawn and Garden Equipment Engines," (utility engines) for snow throwers and ice augers and to the "California Exhaust Emission Standards and Test Procedures for 1995 and Later Off-Highway Recreational Vehicles and Engines," for specialty vehicles under 25 horsepower, incorporated in the California Code of Regulations, Title 13, Chapter 9, Article 1, Section 2403.

Utility Engines

The utility engine regulations were originally approved by the Air Resources Board ("ARB") on December 14, 1990, and were formally adopted on March 20, 1992. The utility engine regulations include exhaust emission standards, and provisions for emission test procedures, engine label requirements, warranty, and compliance programs. Among other things, the regulations as initially adopted established emission standards for hydrocarbons (HC) and oxides of nitrogen (NOx), for utility engines. ARB requested and received authorization to adopt and enforce the utility engine regulations pursuant to Section 209(e) of the Federal Clean Air Act.

On or about March 28, 1996, the Tecumseh Products Company and the Toro Company, along with several servicing dealers, petitioned ARB to exempt snow throwers and ice augers from having to meet emission standards for HC and NOx, thereby leaving those products subject only to emission standards for carbon monoxide (CO).

The U.S. Environmental Protection Agency (U.S. EPA) has made the HC and NOx standards optional for snow thrower and ice auger engines, requiring manufacturers to certify only to the CO standard. U.S. EPA concluded that these wintertime engine emissions do not contribute to summertime ozone concentrations. Therefore, the companies claimed that producing a separate engine for a very limited California market would place a burden on them which may force them out of the California marketplace with consequential adverse impacts for retailers, consumers, and the environment. Staff concurred and, therefore, proposed to make optional the HC and NOx emission standards.

Off-Highway Recreational Vehicles and Engines

The off-highway recreational vehicle and engine regulations were originally adopted by ARB on November 23, 1994. These regulations include exhaust emission standards, and provisions for emission test procedures, engine label requirements, warranty, and compliance programs. Among other things, the regulations as initially adopted established a CO standard of 300 g/bhp-hr for specialty vehicles less than 25 horsepower, for model years 1995-1998.

On January 25, 1996, ARB amended the emission control regulations for 1995 and later utility and lawn and garden equipment engines as a result of a petition from the Briggs & Stratton Corporation. It stated that the CO standard of 300 g/bhp-hr is not technologically feasible, and if the standard were not changed, Briggs and Stratton would not risk