September 8, 1995

South Coast Air Quality

Management District Board

Planning Committee Report


The Planning Committee met on Thursday, August 10, 1995. This Committee currently meets only on an as-needed basis, comprised of the ongoing Mobile Source and Stationary Source Committees. Items discussed included SCAG's Air Quality Chapter for the Regional Comprehensive Plan, the Intercredit Trading Study and a status report on the implementation of the 1994 AQMP.

A summary of these topics and the Committee's comments is provided in Attachment I. An attendance roster is provided in Attachment II.

THEREFORE, IT IS RECOMMENDED THAT YOUR BOARD

--Approve the attached report.

Sincerely,

Jon D. Mikels

Chairman, Planning Committee

BRW:CW:LT:CD:GT

Attachments


ATTACHMENT II

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

PLANNING COMMITTEE

AUGUST 10, 1995

ATTENDANCE SHEET


NAME AFFILIATION


Candace Haggard Board Member

Mee Lee Board Member

Ron Loveridge Board Member

Jon Mikels Board Member

Nell Soto Board Member

Jim Lents AQMD Staff

Barry Wallerstein AQMD Staff

Peter Greenwald AQMD Staff

Catherine Wasikowski AQMD Staff

Jack Broadbent AQMD Staff

Elaine Chang AQMD Staff

Henry Hogo AQMD Staff

Cindy Greenwald AQMD Staff

Pang Mueller AQMD Staff


NAME AFFILIATION


Connie Day AQMD Staff

Francis Goh AQMD Staff

Gary Bill AQMD Staff

Susan Nakamura AQMD Staff

Gracie Q. Tucker AQMD Staff

Judy Orttung Assistant to Board Member Loveridge

Jackie Lourenco Air Resources Board

R. Abachi Air Resources Board

David Stein SCAG

Erika Vandenbrande SCAG

Jacki Bacharach WRCOG

Amy Glad BIA

Deborah Kurilchyk So. Cal. Edison

Jim Ortner OCTA

Carla Walecka C. Walecka Planning

Leann Williams Caltrans District 7

Greg Adams LACSD

Clayton Miller CIAQC

ATTACHMENT I

PLANNING COMMITTEE

AUGUST 10, 1995

TOPICS

1. SCAG's Air Quality Chapter for the Regional Comprehensive Plan

Staff gave an overview of the Southern California Association of Governments (SCAG) Regional Comprehensive Plan and Guide (RCPG) and the AQMD's proposed comments to the plan. Staff stated that joint meetings between the AQMD and SCAG were held to discuss the RCPG's Air Quality Chapter. In 1994 the AQMD submitted comments on 27 key issues contained in the RCPG but it is felt that nine issues still have not been satisfactorily addressed.

Also, staff stated that the overall tone of the RCPG downplays the AQMD's role and legal responsibilities. It was felt that SCAG should include only those elements that are under their legal purview. In addition, staff believed the tone of the RCPG implies that the AQMD does not have outreach programs that provide services and information to the public at large. Staff has prepared a draft response (Attachment A) to SCAG which identifies the AQMD's position. SCAG has extended the comment period until Friday, August 18, 1995.

SCAG is scheduled to take the RCPG before its Energy & Environment Committee in September and the Regional Advisory Council (RAC) in October 1995.

Amy Glad of the Building & Industry Association recommended that the RCPG Air Quality Chapter should be deemed ancillary. Carla Walecka also commented that the chapter should be ancillary.

Board Member Candace Haggard asked staff whether the AQMD had co-authored the RCPG. Staff stated that they did not co-author the Air Quality Chapter but had been asked to comment.

Board Member Haggard motioned that the draft letter from the AQMD be amended to indicate that the Air Quality chapter should be ancillary and areas where SCAG had legislated authority should be discussed in other chapters of the RCPG, as appropriate. Additionally, her motion directed that the revised letter be forwarded to SCAG. The motion was unanimously approved. The final letter is contained as Exhibit A.

2. Inter-credit Trading Study

Staff gave a status report on the Inter-credit Trading Study. Staff indicated that the study was directed by the Board at its April meeting to determine the feasibility of trading emission credits between the mobile source and stationary source markets. Staff will present preliminary findings to the Board in October 1995. The study is basically evaluating different programs, how credits are generated and how these credits are applied. Study objectives include determining how different programs can be linked.

Staff stated that U.S. Environmental Protection Agency (EPA) has released an open market trading rule. This would allow a facility to trade or sell emission credits generated as a result of reductions that are above and beyond current requirements. California State Assembly Bill 1777 also proposes to direct the California Air Resource Board to develop methodologies to determine how facilities can trade emissions between different markets. AB1777 is expected to be signed by the Governor.

The Inter-credit Trading Study will examine the inter-temporal, inter-source and inter-pollutant issues. The inter-temporal issue looks at when a credit is generated and when it is used. Staff is currently studying the seasonal and multi-year aspects to determine if this will affect the attainment strategies in the AQMP. The inter-source issue focuses on the type of source from which an emission is generated. The inter-pollutant issue will analyze trading between pollutants, such as NO and VOCs. Staff will also explore the issue of inter-trading, to determine if there is a common fungible emission credit that can be applied in either the mobile source or stationary source markets.

Staff is scheduled to give a status report to the Board in October 1995. Staff will be requesting public comment during October and November. An action plan will be submitted to the Board in December. Staff stated that business representatives have been asked to comment on various components of the study as they are developed.

3. Implementation Status of the 1994 AQMP

Staff gave a status report on the implementation of the 1994 AQMP. Staff presented charts depicting the emissions reductions expected to be achieved in 2010 based on the adoption of rules according to the AQMP schedule. Actions taken during 1994-95 do not meet the AQMP emissions reduction target since a number of rulemakings have been delayed. Staff explained that the majority of the shortfall was the result of delaying VOC RECLAIM and the restaurant rule. Dr. Lents pointed out that simply because the current year status is behind, does not necessarily mean the Basin won't ultimately achieve attainment; since the projections are for 2010, and that any rules which are only slightly delayed will not affect the attainment demonstration.

Staff informed the Committee that EPA has given the AQMD until February 1997 to adopt the BACM measures contained in the AQMP. Since the AQMD is developing a PM10 SIP in 1996, the submittal of such measures prior to development and adoption of the SIP is premature. Therefore, EPA has granted time to allow the AQMD to develop and adopt the control measures contained in the 1996 PM10 SIP into regulatory form.

4. Public Comment

There were no public comments.

5. Closing Remarks/Other Business

There were no closing remarks or other items of business to discuss.