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

July 12, 1990
9:30 a.m.


Page No.

90-9-1 Public Hearing to Consider Air Resources 001
Board Adoption of Emission Reduction
Accounting Procedures Pursuant to the
California Clean Air Act.

90-9-2 Public Meeting to Consider Approval of 039
California Clean Air Act Permitting Program
Guidance for New and Modified Stationary
Sources in Nonattainment Areas.

90-9-3 California Clean Air Act Guidance on the 075
Development of Indirect Source Control

90-9-4 Consideration of Report on Funding Sources 100
of California's Air Pollution Control
Districts with Budgets Exceeding $1,000,000.

ITEM NO.: 90-9-1

Public hearing to consider adoption of emission reduction
accounting procedures pursuant to the California Clean Air Act


The staff recommends that the Board adopt the emission accounting
regulation to be applied to district plans adopted pursuant to
the California Clean Air Act.


Statutory Planning Requirements

The California Clean Air Act requires districts to develop plans
to achieve state standards as expeditiously as practicable.
These plans must show five percent per year reductions in
districtwide emissions, unless that rate of progress is
infeasible or the district is pursuing an alternative strategy.
The Board must review and approve all district plans, and the
emission reduction calculations within them.

The proposed regulation specifies the information to be provided
in the plans to support emission reduction demonstrations and
establishes procedures to account for the emission changes
through the year 2000.

Need for Regulation

Standard accounting requirements are needed to keep the emission
reduction calculations honest and understandable. In addition,
the accounting procedures will enable the ARB to judge plans
consistently, will streamline the approval process, and will aid
the districts in determining the likely outcome of the Board's

Components of the Regulation

The regulation defines which districts are subject to the
emission accounting requirements, units of measurement (tons per
day), reporting intervals (e.g., 1988-1994), and reporting

The regulation specifies that ARB shall provide baseline emission
inventories and forecasts of future emission levels, for district
use. The staff is adjusting these emission inventories for
temperature related and seasonal variations, so that emission
changes can be compared to the kinds of conditions that are
present when state standards are violated.

To enable the Board to determine when emission reductions will
occur, the regulation requires districts to specify adoption and
implementation dates of proposed control measures and the
anticipated emission reductions from each measure.


Adoption of this regulation will clarify the Board's criteria for
approval of the emission reduction analyses within district
attainment plans. The regulation will also facilitate ARB's
determination of district compliance with the annual emission
reduction provisions of the Act. The regulations do not alter,
expand or constrict the control requirements of the Act, and
therefore have no direct effect on industry.

ITEM NO.: 90-9-2

Public Meeting to Consider California Clean Air Act Guidance for
Permitting New and Modified Stationary Sources in Nonattainment


Approve the staff's report on permitting guidance. Direct the
Executive Officer to provide copes of the approved guidance to
the pertinent districts, and to notify these districts that the
Board will use the guidance as a starting point, in reviewing
district plans, permitting programs, and New Source
Review/Emission Reduction Banking rules.


The California Clean Air Act(CCAA; Stats 1988, Ch. 1568) requires
each air pollution control district (district) that has been
designated a nonattainment area for ozone, carbon monoxide,
sulfur dioxide, or nitrogen dioxide to prepare a plan for
attaining the state ambient air quality standards. The plan must
include a requirement for a permitting program for new and
modified stationary sources designed to achieve no net increase
in emissions of nonattainment pollutants and their precursors.
The Board has responsibility to assure that the California Clean
Air Act (CCAA) requirements are met by the districts.

To assist the districts in designing their permitting programs,
the staff prepared a report and guidance. The report discusses
basic issues that the districts will need to address, various
permitting program options available, and the Board's suggestions
in the form of guidance to the districts.

The guidance presents specific suggestions to the districts for
amending New Source Review (NSR) and Emission Reduction Banking
(banking) rules. The following are the salient points of the

Districts throughout the state should be consistent in
identifying which sources are subject to permitting requirements.
Best available control technology (BACT) should be required to
minimize emissions from all new and modified stationary sources
with any increase in emissions, based on applicability of proven
technology and on the size of the equipment to which it will be
applied. All increases in emissions remaining after application
of BACT should be mitigated.

The guidance includes options for use by the districts in
designing permitting programs in conjunction with other measures
in their attainment plans to meet overall CCAA requirements,
however, mitigation not provided individually by project
proponents must be provided by the district. Mitigation should
meet the criteria of being real, quantifiable, enforceable,
surplus, and permanent.

Districts are encouraged to adopt banking rules, applicable to
all emission reductions intended for use of offsets, to assist in
emissions accounting and in increasing the availability of

The guideline suggests that NSR rules be adopted and in effect by
July 1, 1991, to limit emissions growth in a timely manner. For
emissions growth from projects permitted after the 1987 baseline
date specified by the CCAA, but before NSR and banking rules are
adopted and in effect, the guideline suggests that districts
provide measures in their attainment plans to mitigate such
emissions growth.

Implementation of an effective emissions tracking system is
necessary to ensure that the NSR rules satisfy the CCAA

The guidance also includes suggestions concerning treatment of
carbon monoxide, emission calculation procedures, uniformity of
rules, pollutant transport implications, and consideration of
PM10 (particulate matter 10 microns and smaller in size).

ITEM NO.: 90-9-3

Guidance on the Development of Indirect Source Control Programs
Pursuant to the Requirements of the California Clean Air Act


The staff recommends that the Board advocate the development of
indirect source control programs to the extent necessary to
achieve state ambient air quality standards. Districts should
consider the contribution of emissions associated with existing
and new indirect source emissions, the role other types of
sources can play in achieving state standards, and the district's
overall ability to achieve the five percent or more annual
reductions in emissions. The staff recommends that the Board
adopt the guidance document presented in the staff report.


The CCAA requires districts, to the extent necessary to achieve
state ambient air quality standards, to develop indirect and
areawide source control programs (H&S Code Section(s) 40918-40920).
In addition, districts are authorized to reduce or
mitigate indirect and areawide source emissions if a district's
authority does not infringe on local government's land use
authority (H&S Code Section 40716). An indirect source is
generally considered to be a source which attracts or generates
motor vehicle activity.

The staff has determined that emissions associated with existing
and new indirect sources are significant in many areas of the
state. Therefore, most attainment plans should contain indirect
source control programs. However, a nonattainment district could
decide that indirect source control is not necessary component of
its plan. If indirect source control programs are not included
in the attainment plans, the plans must contain sufficient
analysis for the Board to determine that indirect source control
programs are not feasible or will not expedite attainment of
ambient air quality standards.

The staff has identified four approaches the districts may want
to consider in developing their indirect source control programs.
The approaches are: a permit program for new and modified
sources; source specific regulations and ordinances; increased
use of the California Environmental Quality Act, and the
integration of land use policies, transportation policies, and
air quality policies, in conjunction with, or in lieu of, any or
all of the other three approaches.

Staff considers the development of performance standards to be a
key factor in ensuring the effectiveness of each of the
approaches. Performance standards are achieved through the use
of mitigation, in the form of best available mitigation measures
and additional offsite mitigation. Best available mitigation
measures represent on-site design or operational mitigation
measures. Additional offsite mitigation measures are
characterized by traditional offsets, offsite mitigation, or
mitigation fees for the purchase of offsets or offsite
mitigation. The stringency of these components may depend on a
district's strategies for attaining the state ambient air quality
standards and the proportion of indirect source emissions in the
district's emission inventory.

ITEM NO.: 90-9-4

Consideration of Report on Funding Sources of California's Air
Pollution Control Districts with Budgets Exceeding $1,000,000.


Staff recommends that the Board approve the proposed report for
transmittal to the Governor and the Legislature.


Section 42311.1 of the Health an Safety Code requires the Air
Resources Board to report on the sources of funding for local air
pollution control districts with annual budgets that exceed
$1,000,000. For the 1988-1989 fiscal year (the latest year for
which data were available), there were 10 such districts. The
staff has conducted a survey of these 10 districts and prepared
the report with the assistance of the districts. A public
consultation meeting was held on June 25, 1990 with interested

The report concludes that fees charged to regulated industries
are the largest segment of district revenues. The relative
importance of fees as a component of districts' revenues ranged
from 15%-87% of their local budgets. Fees constituted nearly
three-fourths of the total revenues of all districts combined.
To a lesser degree, state subventions, federal grants, local
taxes, fines and settlements, and miscellaneous other funding
sources also provide revenue for the districts.