BOARD MEETING DATE: June 6, 2008
AGENDA NO. 3

RECOMMENDED ACTION:

1. Establish the Health Effects Research Fund and transfer $1.5 million from the BP ARCO Settlement Fund (Fund 46);
2. Beginning in FY 2008-09, upon annual Board approval, transfer 20% of the annual penalty money received that exceeds $4 million in receipts from AQMD’s General Fund, Penalty/Settlement revenue, to the Health Effects Research Fund;
3. Formally request that BP ARCO agree to allocate $1 million per year from the annual Community Benefit Programs, for years six through ten, to fund health effects research.
4. Authorize the transfer of $1.5 million from the Health Effects Research Fund to the Brain and Lung Tumor & Air Pollution Foundation.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In February, 2003 the Board voted to fund the Brain Tumor and Air Pollution Foundation and the Asthma and Outdoor Air Quality Consortium each with 10% of the fiscal year 2002 – 2003 penalty revenues.  This was about $723,000 for each.  In February, 2004, the Board approved an additional $1.5 million for the Brain Tumor and Air Pollution Foundation.  These funds were used to fund a number of research projects at local universities and research institutions.  Initial findings from the Foundation research indicated that fine particulate exposure is associated with biochemical changes in the brains of laboratory animals that are consistent with the biochemical pattern found in brain tumors.  Another project found preliminary associations of particulate matter levels and the risk of childhood brain tumors.  These findings are provocative, but preliminary, and need to be followed up with additional study to better understand the relation of pollution exposure to the risk of contracting brain tumors.  One of the hypotheses to be tested is whether traffic related emissions and ultrafine particles may be linked to the changes found in brain tissue and tumor risk.

Results from the Asthma and Outdoor Air Quality Consortium have also provided new information on health effects, including the findings of increased risk for asthma symptoms and lung inflammation in children exposed to traffic related emissions.

The requested Board actions will provide funding to conduct additional health effects research, including a followup on the preliminary results described above, and will provide information to better assess the health risks of exposure to fine particulates.

Results from these studies will provide scientific information to inform policy choices for reducing emissions and exposures to pollutants in the South Coast Air Basin.

Proposal

Staff is proposing that the Board establish a Health Effects Research Fund to receive 20% of all penalty/settlement monies in excess of $4 million recognized annually in the AQMD General Fund beginning in FY 2008-09 and to authorize the transfer $1.5 million from the BP ARCO Settlement Fund to the newly established Health Effects Research Fund. In addition, staff is proposing that the Board formally request that BP ARCO allocate, in conjunction with AQMD, for years six through ten, $1 million per year (from their $3 million/year annual allocation) from the AQMD’s annual Community Benefit Programs RFP process to fund health effects research. Finally, to continue AQMD’s efforts to further local research on the health effects of air pollution, staff is recommending that the Board authorize the transfer of $1.5 million from the newly established Health Effects Research Fund to the Brain and Lung Tumor & Air Pollution Foundation.