Lincoln Plaza
Auditorium, First Floor
400 "P" Street
Sacramento, CA

July 10, 1992
8:30 a.m.



92-11-1 Public Meeting to Consider Current Research ---
Findings - California Indoor Exposures.

92-11-2 Public Hearing to Consider Amendments to the 001
Air Toxics "Hot Spots" Fee Regulation.

92-11-3 Consideration of Research Proposals.

ITEM NO.: 92-11-2

Public Hearing to Consider Amendments to the Air Toxics "Hot
Spots" Program Fee Regulation for Fiscal Year 1992-1993.


The Air Resources Board (ARB) staff recommends that the Board
adopt proposed amendments to the Air Toxics "Hot Spots" Fee
Regulations for recovery of fiscal year 1992-93 state and air
pollution control district costs attributable to the "Hot Spots"


The Air Toxics "Hot Spots" Information and Assessment Act of 1987
(the Act) requires the Board to adopt a regulation which recovers
costs incurred by the ARB, Office of Environmental Health Hazard
Assessment (OEHHA), and local air pollution control districts
(districts) in implementing the Act. The "Hot Spots" Fee
Regulation was first adopted in 1988, assessing fees against all
facilities subject to the Act as required. The Regulation is
amended each year to reflect changes in state and district costs,
and in the emission inventories used to calculate fees.

The staff estimates that state and district "Hot Spots" program
costs will be approximately $12.5 million in fiscal year 1992-93,
an increase of 18 percent over fiscal year 1991-92 costs.
District costs comprise $8.5 million or 68 percent of the total
while state costs make up the remaining $4 million or 32 percent.

The Act requires the ARB to adopt facility "Hot Spots" fees, as
part of the Fee Regulation, for districts that provide board-approved
district program costs to the ARB by April 1. The
proposed regulation would establish fees for 10 districts that
met this requirement. The other districts are required to adopt
district fee rules to recover both the district's "Hot Spots"
program costs and the districts' share of state costs as
specified in the Fee Regulation.


The proposed amendment would update the Fee Regulation to include
anticipated state and district program costs for fiscal year
1992-93. The amendments would establish fee schedules for ten
districts. The amendments would also allow these ten districts
to collect a one-time fee only from small facilities that have
minimal emission reporting requirements. The remaining districts
must adopt district fee rules which recover state and districts

Environmental Impacts. Adopting these amendments is not expected
to result in any adverse health, safety or environmental impacts.

Economic Impacts. All small businesses that emit a criteria
pollutant and a listed substance are required by statute to pay a
"Hot Spots" fee. Some small businesses may experience adverse
impacts by paying these fees.