BOARD MEETING DATE: October 3, 2003
AGENDA NO. 34

Implement FY 2002-03 Environmental Justice Enhancement I – 4: Continue to Develop Localized Significance Thresholds for Subregions of the Air District as Another Indicator of CEQA Significance

SYNOPSIS:

On September 13, 2002, the Board approved Environmental Justice Program Enhancements for FY 2002-03. Enhancement I-4 directed staff to continue developing localized significance thresholds through a stakeholder working group. The proposal consists of the methodology used to develop localized significance thresholds, as well as the look-up tables by subregion. Look-up tables may be used for projects smaller than or equal to five acres. Project-specific modeling is recommended for projects larger than five acres. Subsequent to the July Hearing for Enhancement I-4, at which time the proposal was postponed for 90 days, staff provided substantial public outreach to local agencies by holding a second public consultation meeting and meetings with local councils of government, leagues of cities, and individual cities.

COMMITTEE:

Mobile Source, June 27, 2003, and September 26, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution approving the Localized Significance Thresholds Methodology document for voluntary use by other public agencies.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The concept of developing localized significance thresholds (LSTs) in a look-up table format was originally developed in response to the environmental justice initiatives adopted by the Governing Board in October 1997. In particular, Environmental Justice Initiative #4 directed staff to revise the CEQA Air Quality Handbook (Handbook) and establish a stakeholder working group comprised of local government planners; representatives of local councils of government; environmental groups; the building and construction industries; and other interested individuals to solicit input on the revised Handbook.

In 1998, the AQMD started a series of Handbook revision working group meetings. One of the issues identified by the stakeholders was a request to address localized air quality impacts. With respect to criteria pollutants, the existing Handbook only addresses localized impacts as part of focused CO "hotspots" analyses prepared for mobile sources.

Assessing localized air quality impacts requires using complex dispersion models. Therefore, to address the issue of localized significance, yet be sensitive to the fact that other public agencies might not have the expertise to perform such modeling, in addition to the methodology itself, AQMD staff began developing a proposal to establish LSTs in a form similar to the regional significance thresholds, that is, based on the amount of pounds of emission per day generated by a proposed project that would cause or contribute to localized air quality impacts.

After developing the methodology for deriving LSTs, staff presented in the fourth quarter of 2001 the concept, methodologies, and a preliminary evaluation on the use of LSTs at Mobile Source Committee meetings. The Mobile Source Committee recommended that staff seek approval from the Board before proceeding with further development of the LSTs. On February 1, 2002, the Board directed staff to continue developing LSTs and report back to the Board for consideration and possible incorporation into the Handbook.

On September 13, 2002, the AQMD Board approved the implementation of Environmental Justice Program Enhancements for FY 2002-03. In connection with approving the Environmental Justice Program Enhancements for FY 2002-03 the Board directed staff to implement 23 enhancements to the original Environmental Justice Program divided into three categories. Under Category I: Further-reduced Health Risks, Enhancement I-4 included a proposal to continue developing LSTs for subregions of the air district, as another indicator of CEQA significance.

Proposal

LSTs incorporate the concept that different areas in the Basin have different air quality. Use of LSTs would be more protective of public health, especially in areas with higher pollution. Use of LSTs is voluntary for local agencies that want the tools to analyze potential localized impacts. For CEQA purposes, lead agencies are already required to evaluate emissions from projects. Currently, emissions are compared to regional thresholds. Use of LSTs would involve comparing emissions to both regional and local thresholds, and for some projects, more refined calculations and/or additional mitigation measures may be necessary if a local agency deems this necessary.

For localized impacts emissions of interest include NOx, CO, and PM10 (construction and operation). Volatile organic compounds (VOCs) are considered to be ozone precursors. Since ozone is a pollutant of regional concern, LSTs are not applicable to VOC emissions. VOCs that are classified as air toxics are already subject to health risk assessment analysis procedures pursuant to the AQMD document Risk Assessment Procedures for Rules 1401 and 212.

Mass rate LST look-up tables were derived by air dispersion modeling according to the size or total area of the emissions source (one, two, and five acres); by construction or operation phases for each source receptor area (SRA). The dispersion modeling also takes into consideration SRA pollutant background concentrations and meteorology; according to ambient air quality standards (AAQSs) for attainment pollutants or Rules 403 or 1303 for PM10; for receptors located 25, 50, 100, 200 and 500 meters from the source. The methodology is detailed in Attachment D-Draft Localized Significant Threshold Methodology.

The staff proposal recommends using the LST look-up tables only for projects that are less than or equal to five acres. It should be noted that lead agencies are not precluded from performing project-specific modeling if they prefer more precise results. It is recommended that agencies perform project-specific air quality modeling for larger projects. LST look-up tables are applicable only to projects with emissions sources at a fixed location. Emissions sources at a fixed location could include construction equipment operating at a fixed site or heavy-duty on-road mobile sources queuing or idling at a site such as a distribution warehouse facility. LSTs are not applicable to mobile sources traveling over local roadways. Further, LSTs are applicable at the project-specific level and generally are not applicable to regional projects such as local General Plans unless specific projects are identified in the General Plans.

Public Outreach

The staff proposal to implement Enhancement I-4 was originally scheduled to be considered by the Board at the July 11, 2003 public hearing. At the request of local public agencies the Board delayed consideration of the staff proposal for 90 days to the October 3, 2003 public hearing to provide additional opportunity for public outreach and public comment. As shown in Table 1, staff met with local cities, councils of governments, and leagues of cities to discuss the methodology and understand any concerns. Staff also conducted a second Public Consultation Meeting on September 3, 2003, to solicit additional public comment on the staff proposal. Based on the attendance at the Public Consultation Meeting and the 10 local government meetings, a total of approximately 105 cities were represented. Every city in the Basin received information about LSTs and staff were offered briefings.

Table 1
List of Public Outreach Meetings
 

In addition to these recent meetings, there were 3 working group meetings, a public consultation meeting in June, and a technical training session on air quality modeling. In the last 90 days, staff has added sample calculations and additional information for technical assistance, such as where to obtain emission factors and mitigation measures information.

Legal Authority

CEQA Guidelines §15022(a) states that a public agency shall adopt objectives, criteria, and specific procedures consistent with CEQA and these [State] Guidelines for administering its responsibilities under CEQA. CEQA Guidelines 15022(d) states further, "In adopting procedures to implement CEQA, a public agency may adopt the State CEQA Guidelines through incorporation by reference. The agency may then adopt only those specific procedures or provisions described in subsection [15022] (a) which are necessary to tailor the general provisions of the guidelines to the specific operations of the agency." At the December 11, 1998 Public Hearing the AQMD Board formally incorporated by reference the State CEQA Guidelines as the implementing guidelines for the AQMD’s CEQA program. Adopting LSTs would be consistent with CEQA Guidelines §15022 provision to tailor a public agency’s implementing guidelines by adopting criteria relative to the specific operations of the AQMD.

Specifically with regard to thresholds of significance, CEQA Guidelines §15064.7(a) states, "Each public agency is encouraged to develop and publish thresholds of significance that the agency uses in the determination of the significance of environmental effects." Subsection (b) of the same section states further, "Thresholds of significance to be adopted for general use as part of the lead agency’s environmental review process must be adopted by ordinance, resolution, rule or regulation, and developed through a public review process and be supported by substantial evidence." The methodology for developing LSTs and the resulting LSTs developed by the AQMD staff have undergone a public review process as part of stakeholder working group meetings that were open to the public. Two public consultation meetings were held. The attached methodology document provides the substantial evidence relative to the methodology for developing LSTs. The LST proposal is also being heard by the AQMD Board at a public meeting, where it will be considered for adoption by resolution, consistent with CEQA Guidelines §15064.7(b). Upon Board adoption, LSTs serve as GUIDANCE, not a mandatory requirement, to other lead agencies for their air quality impact analyses; use of the LSTs is VOLUNTARY.

Key Issues/Comments

The following summarizes the key issues raised during the development of the staff proposal.

• LSTs should be delayed until the CEQA Handbook is revised, including identification of new mitigation measures.
  LSTs have been under development for almost five years and no inconsistencies with other areas of the existing Handbook or the updates contemplated for the Handbook have been identified. Identifying mitigation measures and associated control efficiencies is an ongoing effort by AQMD staff. The Handbook currently contains a substantial list of mitigation measures and associated control efficiencies. Lead agencies are not constrained to use only those mitigation measures in the Handbook. If the lead agencies identify feasible mitigation measures not identified in the Handbook, it is recommended that they be implemented as part of the CEQA analysis.
   
• LSTs may be inconsistent with local government policies such as infill projects.
  Infill projects that meet certain criteria are exempt from CEQA pursuant to CEQA Guidelines §15332. If a proposed project qualifies for the infill exemption under CEQA, then the LST proposal is not applicable to that project. The LST proposal does not impose additional requirements on public agencies that are not already included in the CEQA statutes and implementing guidelines. Otherwise, staff has not identified policies related to the LSTs that may be inconsistent with locally adopted policies. CEQA currently requires public agencies to examine adverse impacts from proposed projects to determine whether or not they may exceed significance criteria. LSTs simply provide another indicator of significance and use of the LSTs is VOLUNTARY. Staff is willing to work with other lead agencies to assist them with implementing the LSTs.
   
• Implementing LSTs may cause disparities in siting projects.
  The same federal and state AAQSs and risk values are uniformly applied to all areas in the district, except for Class I protected areas which are more stringent. These values, set by federal and state law, are the basis for evaluating adverse localized air quality impacts. Similarly for PM10, the construction LSTs are based on Rule 403 and the operational LSTs are based on the detectable change in concentration threshold in Table A-2 in Rule 1303. Both rules are applicable district-wide. Differences in LSTs between SRAs are caused primarily by differences in local air quality (background concentrations) and meteorology. The differences between neighboring areas and regions are already present in any analysis of adverse localized air quality impacts. Implementing LSTs may require additional mitigation measures in area with poorer air quality, thus, providing additional public health benefits in those areas than would otherwise be the case.
   
• LSTs may increase project costs and delay projects.
  It is possible that costs could increase if more mitigation measures are required to be implemented. However, an evaluation by staff on the effects of adopting LSTs indicated that where the LSTs may be exceeded, it was most often due to construction emissions. However, project proponents could first of all, perform more realistic emission calculations to avoid overestimation. Mitigation measures to reduce PM10 emissions during construction in many cases would likely be relatively inexpensive because equipment and construction workers are already onsite to provide additional dust control. It is possible that projects that now qualify for a negative declaration will need to be classified as mitigated negative declarations, but this is not expected to appreciably increase the time or cost burdens on project proponents or the lead agencies. Some projects may require an EIR if voluntary use of LSTs indicates significant impacts. These projects will result in better public health protection and may generate fewer complaints from neighboring residents or businesses.

Implementation of the Localized Significance Thresholds
Because environmental analyses typically take months or longer to prepare, it is recommended that use of the LSTs begin for new projects initiating the environmental analysis process after the date of adoption. Projects that have already begun the environmental analysis process may continue using only the existing regional significance thresholds. Specifically, AQMD staff will implement LSTs for lead agency projects after January 1, 2004, and will prioritize review and comment on intergovernmental CEQA documents to projects that are more likely to raise localized concerns, such as projects identified as having potential air quality related EJ concerns or projects located near schools beginning in January 2004 for NOP/IS and July 2004 for EA documents. AQMD staff will clearly indicate through outreach to local agencies and in comment letters that use of the LST methodology and thresholds is voluntary.

Resource Impacts

If approved by the Board, implementation of EJ Enhancement I-4 will begin in January 2004. Existing AQMD resources will be sufficient to implement this policy.

Attachments (1,935 KB)

1. LST Development Process
2. Resolution
3. Localized Significance Thresholds – Key Issues/Comments
4. Draft Localized Significance Threshold Methodology Document

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