August 11, 1995

South Coast Air Quality

Management District Board

Pursuant to the California Air Toxics "Hot Spots" Information and Assessment Act of 1987 (AB 2588) the South Coast Air Quality Management District (AQMD) is responsible for ensuring adequate health risk assessments (HRAs) are prepared. In the past, each individual facility has prepared their own HRA. However, in order to reduce costs to facilities and streamline the process, the AQMD is proposing to offer to prepare the HRAs for facilities under a voluntary pilot program. The purpose of this letter is to request Board concurrence to develop and offer this voluntary pilot program to facilities in the AB 2588 program.

Background About AB 2588

AB 2588 is a state law that requires certain facilities that emit one or more of over 700 compounds to:

• develop an inventory identifying the amount and type of air toxic compounds emitted by the facility; and,
  
• conduct an HRA, and if necessary, notify the exposed public of potential health effects.

To accomplish this task, facilities entered the program in three phases depending upon the amount of criteria and air toxic emissions emitted. In general, the facilities with the potential for the highest level of risk to the exposed public were in phase 1, with phases 2 and 3 including facilities with the potential for a lesser risk to the public.

Facilities in phase 1 of the program have already prepared HRAs. These HRAs have either been approved by the AQMD, or are in the final approval stages. Facilities in phases 2 and 3 have not yet been requested to prepare HRAs as required by state law.

As such, an opportunity exists to benefit from the experience gained in working on phase 1 HRAs to reduce program costs and streamline the process for phases 2 and 3.

What is the purpose of this voluntary pilot program?

In forging a clean air partnership with the business community, the AQMD has been seeking to find less costly and streamlined alternatives to comply with air quality regulations. This pilot program is proposed to offer facilities a less costly and time consuming means to comply with the state requirement for facilities to prepare HRAs. This would be accomplished by allowing facilities in phases 2 and 3 of the AB 2588 program, the option of having the AQMD prepare their HRA, instead of hiring a consultant.

What are the benefits of this pilot program to industry and the AQMD?

Our experience with facilities in phase 1 of the AB 2588 program has shown that:

• facilities are paying more for the preparation of HRAs than the AQMD typically pays;
  
• it is very time consuming for the AQMD and the Office of Environmental Health Hazard Assessment (OEHHA) to review the HRAs since they are prepared using different formats and do not always follow appropriate procedures;
  
• there are added costs and time delays experienced by the facilities to correct the HRAs; and,
  
• the delays between finalization of the facility's inventory and HRA has created a number of unnecessary complications.

By providing facilities the option of having the AQMD prepare the HRAs, these problems can be eliminated. Facilities would benefit by paying the same cost the AQMD pays for the preparation of HRAs. The time to review HRAs will be significantly shortened since the HRAs would be prepared to AQMD and OEHHA specifications. Thus, the AQMD's role would be reduced to monitoring quality control of the consultant's work, rather than having to spend time reviewing each HRA. In addition, facilities would not have to incur extra costs or increased time delays to revise HRAs.

How will the pilot program work?

AQMD staff would develop the pilot program over the next few months so that it could be offered to facilities by the end of 1995. The basic structure of the program would be as follows:

• The AQMD would retain one or more consultants through the standard competitive bidding process to prepare HRAs at a fixed cost. Facilities electing to participate would only pay the fixed cost for preparing HRAs in the contract. No additional fees would be added to cover AQMD administrative costs.

• The AQMD would work with each facility to finalize their latest inventory report. By using the most recent inventory, the HRAs will represent the current risk to the exposed public. This approach will also allow facilities to take into account recent permanent and enforceable changes made to reduce air toxic emissions.

• The AQMD's consultants would prepare the HRAs based on the agreed upon inventory and using the most recently approved guidelines. In this way, recent changes to risk assessment methodologies can be reflected.

• As required by state law, the HRAs would be reviewed by OEHHA.

• Prior to AQMD approval, each facility would have an opportunity to review the HRA to ensure it accurately reflects the agreed upon inventory.

This would be a voluntary program offered as a service to the facilities in phases 2 and 3 of the AB 2588 program. Facilities could choose not to participate in the pilot program and would continue to be able to prepare their own HRAs.

Staff will report back to the Board in the fall with a request for proposals to solicit appropriate consulting firms to perform the work. In addition, staff will provide the Board with a status report once the pilot program is implemented.

THEREFORE IT IS RECOMMENDED THAT YOUR BOARD

--Direct staff to develop a voluntary pilot program for the AQMD to prepare HRAs for facilities in phases 2 and 3 of the AB 2588 program.

Respectfully,

James M. Lents, Ph.D.

Executive Officer

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