BOARD MEETING DATE: October 1, 2004
AGENDA NO. 31

Oppose the California Performance Review Recommendations Regarding Potential Erosion and Removal of Local Air Agency Permitting Authority and Air Quality Regulations for Petroleum Infrastructure and the Elimination of California Air Resources Board

SYNOPSIS:

This action is to oppose three proposals within the California Performance Review that could potentially have detrimental effects on air quality within our region and public’s access to decision-making at the state level.

RECOMMENDED ACTION:

Approve recommendation.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Governor, in his State of the State address on January 6, 2004 and in his Executive Order of February 10, 2004, created the California Performance Review (CPR) to conduct a focused examination and assessment of California state government. Based on that examination and assessment, CPR’s mandate was to formulate and recommend changes to state government agencies, programs and operations with the intention to reduce total costs of operations, increase productivity, improve services and make government more responsible and accountable to the Governor. More than 250 state employees from all walks of state service worked on developing the specific recommendations within that review.

However, there are recommendations in that review which could potentially result in the erosion of local air agency permitting authority (INF22 Recommendation A) and removal or waiver of air quality regulations (RES14 Recommendation A) for petroleum infrastructure and the elimination of California Air Resources Board (CARB). This would have detrimental effects on the air quality within our region and our ability to reach federal and state mandated air quality standards as well as the ability of the public to participate in the decision-making process at the state level.

Petroleum infrastructure facilities are major emitting sources with significant levels of both toxic and criteria air pollutant emissions within the South Coast Air District. Therefore, any construction proposals for new facilities and/or expansion of those already sited here are best reviewed by local agencies which have the expertise in the specific area of environmental impacts and local impacts and are more directly responsible to the constituents most impacted by emissions from these facilities. Any efforts to weaken or remove local review and permitting authority or air quality regulations in either expansion or siting of petroleum infrastructure should be strongly opposed by the AQMD as not being in the best interest of the public as previously established by the Board.

Also, some of the information which was used as the basis for making recommendations to weaken air quality regulations or local agency permitting authority for petroleum infrastructure facilities came from petroleum industry representations with no input from air districts. For example, the AQMD is the authorized agency by the U.S. EPA to implement the federal Title V (40 CFR Part 70) operating permit program. The Department of Business, Transportation and Housing, or California Energy Commission, is not recognized by U.S. EPA as authorized agency to implement the Title V program. Even in the case of power plant permitting process where presently CEC has state-wide licensing authority, the applicants are still required to obtain a Title V Permit to Construct from AQMD.

Nevertheless, the AQMD remains committed to continued work with refinery operators and others to increase efficiency and effectiveness of the permitting program while maintaining appropriate environmental safeguards. This includes the Board’s recent direction to reconstitute its Permit Streamlining Task Force to provide an update assessment of additional enhancements that should be pursued.

The state Board’s public hearing process also creates a more open public participation process than would occur under the CPR’s recommendation. Therefore, any efforts to dissolve CARB should be strongly opposed by the AQMD. Lastly, the Legislature has carefully crafted the composition of CARB to reflect the geographic diversity of air quality issues in the state and to include specific expertise related to health effects and mobile source emissions. This structure includes one member from the AQMD Board, since the AQMD’s jurisdiction encompasses 40 percent of the state’s population.

Recommendation

Oppose any efforts which may result in the elimination for air quality regulations or weakening of local review and permitting authority in either the expansion or siting of petroleum infrastructure as well as any efforts to dissolve CARB, and direct staff to closely monitor the CPR process and implement appropriate actions to ensure that the AQMD provides testimony/comments that may influence the eventual outcome of this process.

Reference

Web site for the California Performance Review - http://cpr.ca.gov/

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