Administrative Committee

BOARD MEETING DATE: July 12, 1996 AGENDA NO. 27

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REPORT:

Interagency AQMP Implementation Committee

SYNOPSIS:

The IAIC met May 23, 1996, to discuss: the activities of its Technical Advisory Committee; the activities of the REACH Task Force; transportation conformity issues; proposed amendments to Rule 2015 (Backstop Provisions); Proposed Rule 2009 (Area Source Credits); local government outreach activities, including a legislative alert on SB 836; alternative fuels/Zero-Emission Vehicle Mandate; the RFP for Audit of AB 2766 Fee Revenue Recipients for FYs 1993-94 & 1994-95, an update on the AB 2766 Discretionary Fund process; and Public Advisor Office activities. An attendance record of the May 1996 meeting is attached, and a summary of that meeting, including suggestions and comments for your consideration, is below. The next IAIC meeting is August 22, 1996, at 1 p.m. in Conference Room CC8.

Receive and file this report.

JDM:LRB:DAR

Approval of March 28, 1996, Minutes

Chairman Jon Mikels called for a motion on the March 28, 1996, IAIC meeting
minutes.

On motion by Council Member Thomas Wilson, and seconded by Al Lopez, the March 28, 1996, meeting minutes were approved, as submitted.

Report by TAC Chairman on Technical Advisory Committee Meeting

In the absence of TAC Chair Jim Stahl, Greg Adams of the Los Angeles County Sanitation Districts, reported that the TAC discussed two items which were not included on the IAIC agenda--Rule 430 (Breakdown Provisions) and an NSR update relative to proposed amendments to Rules 1304 (Exemptions) and 1306 (Emission Calculations).

Proposed Amendments to Rule 430 (Breakdown Provisions)

ACTION:

The IAIC asked that on its next agenda staff include a discussion of proposed Rule 430 amendments, which is scheduled for public hearing July 12.

Proposed Amendments to
Rules 1304 (Exemptions) and 1306 (Emission Calculations) Relative to NSR

Next, Mr. Adams explained that the Governing Board on June 14 will be considering NSR revisions relative to proposed amendments to Rules 1304 and 1306. The TAC raised several issues regarding 1304 amendments, relating to portable equipment. Although the changes to the rule language satisfy the majority of industry concerns, there remains a concern relative to internal combustion engines and portable equipment. Where an internal combustion engine drives the portable equipment, the ICE and the driven equipment will be handled differently in the permitting process. The TAC discussed proposals with staff to prevent this, such that Rules 1304(a)(7) and (a)(8) should be consolidated and that storage requirements be made compatible. In addition, relative to potential-to-emit calculations, the TAC believes that fugitive emissions should only be included in potential-to-emit calculations if the facility is one of the 26 major sources designated in the Federal Clean Air Act, Title 1.

Update on REACH Task Force

As co-chair of the REACH Task Force, along with Council Member Judy Wright of SCAG, Chairman Mikels stated that he was unable to attend the bulk of the last meeting, but a copy of the April 23 meeting minutes was included within the agenda package.

Discuss Transportation Conformity Issues

Connie Day, AQMD Transportation Program Supervisor, reminded the Committee that she was asked to return to discuss transportation conformity relative to pending legislation (e.g., SB 836 and SB 1603). Since nothing further has occurred relative to the legislation since the last IAIC meeting, Ms. Day merely emphasized that all emissions reductions must be made up if legislation eliminates any AQMD rule or program. Without such, transportation conformity cannot be achieved.

Review of Proposed Amendments to Rule 2015 (Backstop Provisions)

Hamed Mandilawi, AQMD Sr. Air Quality Engineer, reported that during the RECLAIM program development process, a few industries voiced concern to their year 2000 emission reduction requirements. To address their concerns, the AQMD added language to Rule 2015 which required a technology review of NO_x reduction methods used to determine the year 2000 emission factors for several industries. The technology review has been completed and recommendations have been approved by the Board for all the source categories except for gray cement kilns. Staff found that the conversion of the kiln to an indirect firing system coupled with low-NO_x burner and secondary combustion of fuel, such as tires, could reduce NO_x emissions to 2.73 lb./ton of clinker. The AQMD and industry agree to the recommended methods but disagree on the rate of reduction from each method. Therefore, staff is recommending to change the year 2000 NO_x emission factor from 0.98 to 2.73 lb/ton of clinker. In addition, staff is recommending to add new language to Rule 2015 which will allow the cement industry in the Basin to demonstrate the control technologies. If the demonstration shows a higher emission factor than the staff recommended emission factor, the AQMD will change the year 2000 emission factor listed in Table 1 of Rule 2002. The proposed amendments to Rule 2015 are scheduled for public hearing July 12, 1996.

Discuss Proposed Rule 2009 (Area Source Credits)

Pang Mueller, AQMD Sr. Manager/RECLAIM & Title V Administration, explained that when the RECLAIM Program was being developed, it was decided that other sources of credits should be established for use by RECLAIM facilities. Consequently, the Board has begun adopting credit rules for mobile sources (e.g. lawnmower rule) and vehicle scrapping. Proposed Rule 2009, currently scheduled for public hearing in November 1995, would allow for area source credits from stationary, nonpermitted sources. It is designed as a voluntary program developed with input from the Area Source Credit Steering Committee, and Rule 2009 is itself the credit generation rule. The area source universe includes consumer products, nonpermitted equipment, and energy conservation. The goal is to encourage innovative programs.

Report on Local Government Outreach Activities and Legislative Alert

Relative to the legislative alert on SB 836, TAC representative Greg Adams emphasized that not only would the MSRC’s program be eliminated, which generates jobs and improves the region’s economy, but the fees are also critical for funding essential AQMD programs, such as monitoring, based on the prorated contribution from mobile sources. This could either result in an additional burden to stationary sources or a reduction in such services. Wes McDaniel, Executive Director of SANBAG, stated that since this $4 vehicle registration fee was enacted county by county, the question of whether the Legislature can usurp a locally approved revenue source should be addressed.

AQMD legal counsel agreed to check into this argument.

After the IAIC’s TAC discussed the potential impacts of the bill at its meeting, it prepared a draft letter to be sent to Senator Lewis from the IAIC. Greg Adams presented that letter to the IAIC for consideration. After requesting several revisions, those IAIC members present signed the letter. Lillian Kawasaki from the City of Los Angeles recommended that the letter be held until the appropriate time when it would not jeopardize negotiations with the bill’s author. The IAIC authorized Chairman Mikels to release the letter when he believed it was appropriate. An undated copy of this letter is included as part of these minutes.

Update on Alternative Fuels/ZEV Mandate

In the absence of Council Member John Cox, his associate, Jennifer Kemp, gave an overview of what SCEP (The Partnership) has been working on the last few months relative to the advancement of alternative fuels and the ZEV mandate.

Request for Proposals for Audit of AB 2766 Fee Revenue Recipients for Fiscal Years 1993-94 & 1994-95

Lily Kapur, AQMD Financial Analyst, reported that AB 2766 requires that an audit be performed every two years on a random sample of fee recipients. The draft Request for Proposals included in the agenda solicits bids to perform the audit of AB 2766 Fee Revenue Recipients for Fiscal Years 1993-94 and 1994-95. The IAIC members had no comment.

Update on AB 2766 Discretionary Fund Process

Chairman Mikels noted that proposed amendments to Senate Bill 836 (Lewis), which would eliminate Rule 2202, includes language to divert AB 2766 discretionary funds in entirety to a state scrapping program, in part to make up for the deficit in emissions reductions which would be lost from the elimination of Rule 2202. Details were discussed within the Local Government Outreach agenda item.

Monthly Progress Report on Public Advisor Office Activities

The agenda package included the Public Advisor's Monthly Activity Report for February 1995 as well as the reports on visiting dignitaries for January and February. La Ronda Bowen, Public Advisor, reported that there is a sentiment in the small business community that information is not reaching them, and that the AQMD is not as visible in that community as it should be. Proposals to enhance the AQMD’s presence within the small business community will be presented to the IAIC for feedback at a future meeting.

There being no public comment or further business, the IAIC meeting adjourned at 2:00 p.m.

(c:6-96BDLT)

INTERAGENCY AQMP IMPLEMENTATION COMMITTEE

ATTENDANCE RECORD

Thursday, May 23, 1996

IAIC MEMBERS:

(Chair) Board Member Jon Mikels, South Coast AQMD

(Vice Chair) Member Member Ronald Loveridge, South Coast AQMD

Greg Adams, Los Angeles County Sanitation Districts

Dr. Michael Barry, Riverside County Transportation Commission

Mayor Robert Bartlett, Southern California Association of Governments

Council Member John Cox, Orange County Sanitation Districts

Council Member Joseph Dawidziak, LA County Metropolitan Trans. Authority

Lillian Kawasaki (alternate), City of Los Angeles

Mayor John Longville, San Bernardino Associated Governments

Al Lopez, Southern California Rideshare

Wes McDaniel (alternate), San Bernardino County Transportation Commission

Council Member Pat McGuigan, Orange County League of Cities

Council Member Ronald Roberts, Western Riverside Council of Governments

Mayor Eunice Ulloa, Inland Empire League of Cities

Council Member Thomas Wilson, Orange County Transportation Authority

AQMD STAFF:

La Ronda Bowen, Public Advisor

Kate Crespi Chun, Air Quality Specialist

Connie Day, Transportation Program Supervisor

Lily Kapur, Financial Analyst

Claudia Keith, Sr. Public Information Specialist/Legislative Office

Hamed Mandilawi, AQMD Sr. Air Quality Engineer

Pang Mueller, Sr. Manager/RECLAIM & Title V Administration

Drue Ramirez, IAIC Administrative Liaison

Jeri Voge, Deputy District Counsel II

PUBLIC:

Jacki Bacharach, representing Western Riverside COG

Lauren Dunlap, Southern California Gas Company

Daniela Fernandez, AQMD Board Assistant (Mikels)

Julie Fitch, Southern California Association of Governments

Kevin Hadden, Orange County Sanitation Districts

Ron Hoffman, County of Los Angeles

Jennifer Kemp, The Partnership (SCEP)

John Kershaw, County of Riverside

McGivney, Eastern Municipal Water District

Joan Mavina, Transportation Dept./County of Riverside

Dr. James Ortner, Orange County Transportation Authority

Judy Orttung, AQMD Board Assistant (Loveridge)

Ron Wilkniss, Western States Petroleum Association

June ?, 1996

The Honorable John R. Lewis

California State Senate

State Capitol Building, Room 3063

Sacramento, California 95814

Proposed CARB Amendments to Senate Bill 836

The membership of the Interagency AQMP Implementation Committee (IAIC) is opposed to diverting vehicle registration fees (AB 2766) away from existing programs to fund “new” programs. The IAIC was established in November 1989 by the South Coast Air Quality Management District (SCAQMD) for the purpose of discussing and developing mechanisms to implement the Air Quality Management Plan. In addition to its initial directive, the IAIC has also become a valuable forum for exchange on all ideas concerning air quality between SCAQMD and local governments. The IAIC consists of locally elected city and county government officials from Southern California, representatives of transportation commissions, county administrative offices, county councils of governments, leagues of cities, sanitation districts and water districts.

The IAIC understands that SB 836 may be amended to divert vehicle registration fees (AB 2766) away from existing programs in order to fund state efforts, if necessary, to develop an alternative mobile source control measure to replace Rule 2202. AB 2766 currently authorizes local air districts in non-attainment areas throughout the state to impose a surcharge on vehicle registration. Monies generated from this fee must be used by the air districts and local governments within those districts for programs to reduce mobile source air pollution. Local governments throughout the state have used vehicle registration fees to help meet their regulatory obligations under the federal and state clean air acts and make progress toward cleaner air. Further, county and city governments in the South Coast District who have chosen to receive the available funds have adopted ordinances as required by the statute. Diversion of vehicle registration monies to fund other mobile source emission reduction programs would impose additional burdens and liabilities on already overburdened local governments and would jeopardize attainment of air quality standards throughout California.

The implementation of the AB 2766 Discretionary Fund Program through the Mobile Source Air Pollution Reduction Review Committee has also had the added benefit of stimulating small business enterprises and jump-starting clean air partnerships, resulting in more jobs and a stronger economy for our South Coast cities. In addition, vehicle registration fees utilized by the SCAQMD to fund various activities and programs which are necessary, such as air quality monitoring, help to minimize costs to the regulated industry, which would otherwise have to subsidize these efforts.

It is inappropriate and counterproductive to take funds away from one program to pay for another when all of our efforts are collectively needed to achieve clean air standards. We hope that you will seriously consider the negative impacts of diverting vehicle registration fees by the proposed amendments.

Very truly yours,

IAIC:dar

cc: John Dunlap, Chairman/CARB

Senator Byron Sher