BOARD MEETING DATE: January 21, 2000
AGENDA NO. 21

REPORT:

Status of Home Rule Advisory Group

SYNOPSIS:

This report is to apprise the Board of the status of recent efforts undertaken by the Home Rule Advisory Group.

COMMITTEE:

Stationary Source, November 19, 1999, Discussed

RECOMMENDED ACTION:

Receive and file.

This letter provides an overview of the charter and recent activities/accomplishments of the Home Rule Advisory Group.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Home Rule Advisory Group (Group) was chartered July 14, 1995, by the Governing Board to help develop approaches to simplify and streamline regulatory compliance as part of AQMD’s Business Clean Air Partnership. Co-chaired by Governing Board members Norma Glover and Roy Wilson, the Group seeks consolidation of overlapping federal, state, and local regulations and provides proactive regional input on pending legislation and regulatory proposals. Group members are appointed by the Governing Board, and include up to thirty representatives from EPA, CARB, SCAG, AQMD, environmental groups, business organizations, and communities (see attached table listing current members and their respective affiliations).

1999 Goals and Objectives

Goals and objectives for 1999 included: (1) work with CAPCOA, ARB and EPA to establish a formal national process for determining LAER; (2) respond to EPA’s proposed Economic Incentive Program (EIP) draft guidance document; (3) seek ways to enhance the viability and use of credits (e.g., improving understanding of credit trading and ability to trade); (4) establish a model program for AQMD featuring a programmatic approach to the environmental justice (EJ) complaint process; and (5) seek financial assistance for small businesses. Considerable progress was made in achieving some of these goals as highlighted below.

(1) BACT/LAER
Significant progress has been made regarding this issue. The work effort has focused on BACT/LAER determinations and providing additional flexibility to permit applicants while ensuring environmental goals are acheived. A subcommittee of the Group assisted staff with the preparation of discussion papers to document concerns related to cost in LAER determinations, the definition of source category, standards for the "achieved in practice", and the public process for LAER listing determinations and equipment relocations. The Group explored the basic concept of affordability for small businesses. Group members and staff recently met with EPA Assistant Administrator for Air and Radiation, Bob Perciasepe, wherein these concerns were reviewed and potential solutions discussed. These efforts, along with possible amendments to Regulation XIII to implement possible solutions, will continue as part of the Group's 2000 Goals and Objectives.

(2) Economic Incentive Program Comments
A subcommittee of the Group worked extensively providing input to drafting comments with staff on EPA’s proposed EIP. The EIP sets forth EPA’s proposed policy on discretionary economic incentive programs and provides guidance on districts’ development of EIPs and their submittal to EPA. The Group’s input was considered in the preparation of staff comments submitted to EPA.

(3) Credit Trading Enhancement
In addition to commenting on EPA’s draft EIP, a subcommittee prepared a paper entitled "Benefits of an Emissions Credit Trading Program." The paper reviewed the need to utilize market forces to advance technologies, in order to achieve attainment of air quality goals.

(4) Environmental Justice
The Group's subcommittee on Environmental Justice monitored the FACA Title VI Implementation FACA efforts.

(5) Small Businesses
A special Group meeting was held to evaluate ways to address affordability in permit and source category determinations for LAER. Representatives from several banking institutions were invited and possible criteria developed. This effort will also continue as part of the Group's 2000 Goals and Objectives.

California Coalition Issues

In addition, members of the Group also participated with the California Coalition, consisting of state and local representatives, to address four key issues: SIP gap, MACT equivalency, Title V implementation, and variances.

SIP Gap
The Group has worked with EPA to expedite approval of rules into the SIP. EPA added two additional staff persons on a short-term basis to help reduce the backlog. Additionally, EPA is instituting changes to decrease the processing time, reprioritizing to address District needs, and removing some rules from the evaluation process.

MACT Equivalency
Group members, along with staff, are seeking EPA support to simplify the determination of equivalency for the new federal MACT standards. An MOU and Implementation Framework is nearing completion, which will provide a mechanism to demonstrate equivalency between federal MACT standards and district air toxic programs.

Title V Implementation
The Group provided input regarding several Title V issues. The main effort, guidance on enhanced monitoring, is complete.

Variances
The AQMD adopted Rule 518.2 in 1998 as the mechanism to allow variances under Title V. EPA, however, has recently proposed disapproval of Rule 518.2, and the Group could be instrumental in providing input to EPA on this issue.

Inland Empire Summit Recommendations

In August 1998, an Air Quality Summit was held that included presentations and panel discussions with several congressional representatives (including Congressmen George Brown, Ken Calvert and Jerry Lewis), and federal, state and local air quality regulators. Based on these discussions, a matrix of issues was developed, many which were similar in concern to the issues being addressed by the Group. A key action item from this Summit is to coordinate with the Home Rule Advisory Group to assist and review duplication issues and report back to the congressional delegation. The Group is continuing to work on the action items from the Summit.

Other AQMD Programs

Throughout the course of the year, the Group also reviewed and commented on a number of other key AQMD efforts. These efforts included the AQMD's Children's Air Quality Agenda, proposed changes to the CEQA Handbook, several rulemakings to respond to recent EPA SIP calls, and the BACT Guidelines update process.

2000 Goals and Objectives

The Group will define and finalize its goals and objectives for the coming year at its next meetings.

Attachment

Membership Roster

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