State of California

Summary of Board Meeting
November 13, 1997

Air Resources Board
Board Hearing Room, Lower Level
2020 "L" Street
Sacramento, California

MEMBERS PRESENT: Hons. John D. Dunlap, III, Chairman
Joseph C. Calhoun, P.E.
Mark DeSaulnier
Lynne T. Edgerton, Esq.
William F. Friedman, M.D.
Jack C. Parnell
Sally Rakow
Barbara Riordan
Ron Roberts
James W. Silva


97-9-1 Public Hearing to Consider Amendments to the Air Toxics Hot Spots Regulation for Fiscal Year 1997-1998


The Air Toxics Hot Spots Information and Assessment Act of 1987 requires the Air Resources Board (ARB) to adopt a fee regulation to ensure that costs incurred to implement and administer the Air Toxics Hot Spots Program are recovered by assessing fees on facilities subject to the requirements of the Act. The fees assessed through this regulation will be used to inventory air toxics emissions, prioritize facilities, prepare risk assessments, review risk assessments, notify the public of potential health risks from exposure to the emissions, and provide guidance to the facilities for reducing the risk from exposure to the emissions. The Regulation specifically allocates the State's costs among the air districts, and it establishes facility fees for the nine air districts that have requested ARB to adopt their facility fee schedules.

For Fiscal Year 1997-98, the staff proposed using the same method for distributing the State's cost among districts and for calculating fees as used in Fiscal Year 1996-97. Based on this method, facilities' fees for Fiscal Year 1997-98 are based on health risk, as determined by risk assessment results or prioritization scores.

The Board approved amendments that will: reduce the State costs to implement the Program for Fiscal Year 1997-98 to $1.35 million; increase the State fee assessed for industry-wide facilities from $15 to $25; revise several Fee Program definitions; revise Appendix A of the Fee Regulation; and revise the regulatory tables establishing per-facility fees for various facility program categories to support needed revenues from the facilities in the Program at this time. The Fee Regulation also included fee schedules for seven districts.

The staff proposed, and the Board approved, changes at the meeting to reduce the per-facility fee rates proposed at the time the hearing notice was issued. This regulation impacts approximately 16,000 facilities; 4,000 less facilities than were affected by the previous fiscal year's Fee Regulation.

The Board directed staff to work with the districts and the California Air Pollution Control Officers Association regarding consistent implementation and administration of the "Hot Spots" Program among districts so that the fee burden is equitably allocated among districts.


Bill McConachie
National Paint and Coating Association

Randy Solganik
Metal Finishing Association of Southern California Inc.


Approved resolution 97-41 by a unanimous vote.


STAFF REPORT: Yes (173 pages)

97-9-2 Public Hearing to Consider Adoption of a Hairspray Credit Program


On March 27, 1997, the Board amended the California Consumer Products Regulation pertaining to hairspray to delay the effective date of the second-tier hairspray standard of 55 percent volatile organic compound (VOC) by 17 months to June 1, 1999. At that time, the Board also directed staff to work with interested parties to develop an early reduction credit program to reward those manufacturers who produce and sell 55 percent VOC hairspray products prior to June 1, 1999.

In response to the Board directive, the staff worked with interested parties, including hairspray and other consumer products manufacturers, their suppliers and associations, and the U.S. EPA, to identify the goals of the program and develop specific regulatory language. To this end, staff conducted two formal discussion meetings and three conference calls and held numerous individual telephone calls and meetings.

Staff proposed, and the Board approved, a voluntary, market-based Hairspray Credit Program regulation, and related amendments to the California Consumer Products regulations, providing for both emission reduction credit generation from hairsprays and use within the consumer products arena. Manufacturers and marketers of hairsprays that comply with the 55 percent VOC hairspray standard before the June 1, 1999, effective date can be awarded credits from January 1, 1998 up to the effective date. Additionally, to provide greater incentive for participation in the program, hairspray products with VOC levels less than 55 percent could qualify for additional credits up to January 1, 2005. The program will allow only certain specific uses credits under the California Consumer Products Regulations, including use to obtain additional time to comply with the upcoming standards for a wide variety of consumer products categories with compliance dates ranging from January 1, 1999 to January 1, 2005. The credits will have a fixed life, generally a five-year period. To preserve ARB's State Implementation Plan (SIP) commitment for emission reductions from consumer products, the ability to use credits will cease on January 1, 2010.

The program contains application requirements for credit generation and use, reporting requirements and enforcement provisions to ensure compliance with its goals and requirements. ARB staff will administer all aspects of the program. There are no program fees.

The program is intended to supplement the existing California Consumer Products Regulations and provide a high level of flexibility to participating parties. The flexibility in meeting regulatory requirements is likely to provide an economic benefit to program participants. In terms of emission reductions, the program is designed to encourage early and additional emission reductions from hairsprays, promote the development of low VOC technology which may result in additional emission reductions, and preserve the Air Resources Board's SIP commitment.

In addition, staff suggested, and the Board approved, changes to the original proposal to address several of the written comments provided by the U.S. EPA. Testimony was provided in support of the proposed program and staff's suggested changes by a representative of the regulated community; however, the representative expressed reservations pending opportunity to review the specific language for the suggested changes. Staff was directed by the Board to develop the specific regulatory language and to make such language available for 15 days in a Notice of Public Availability of Modified Text.


Jim Mattesich
CTFA (The Cosmetic, Toiletry, and Fragrance Association) and DuPont Fluoroproducts


Approved Resolution 97-42 by a vote of 9-1.


STAFF REPORT: Yes (102 pages)

97-9-3 Public Hearing to Consider Amendments to the Area Designations for the State Ambient Air Quality Standards

Health and Safety Code (H&SC) section 39608 requires the Board to designate areas as nonattainment, attainment, or unclassified for the State standards. These area designations must be reviewed annually. In this year's review, the staff considered air quality data collected during 1994 through 1996. Based on these data, the Board adopted the staff's recommendations of the following amendments to the area designation regulations: redesignate Butte and Glenn Counties, in the Sacramento Valley Air Basin as nonattainment-transitional for ozone. These redesignations were made to implement changes to H&SC section 40925.5 which specifies the criteria for designating an area nonattainment-transitional for ozone. Previously, nonattainment-transitional designations were based on air quality within the entire air basin. The changes to the criteria require that this designation be based on air quality within a district.


Ed Romano
Glenn County APCO


Adopted Resolution 97-43 by a unanimous vote.


STAFF REPORT: Yes (155 pages)

97-9-4 Public Meeting to Consider the Approval and Verification of California's 1995 Emission Inventory Update


SB 2174, passed in 1996, requires the Board to approve, at a non-regulatory public meeting, the emission inventory for criteria pollutants, including emissions from mobile, stationary, area-wide, and nonanthropogenic sources. The law also requires verification of the emission inventory using available, scientific data, including measured pollution, and an explanation of any discrepancies. The Board's first inventory approval must occur not later than January 1, 1998, and must be revisited at least every three years thereafter.

The staff recommended the Board approve the statewide, annual average, 1995 Emission Inventory. This is the latest year for which an inventory is available.

The staff further recommended the Board accept the staff's verification of the inventory. The staff presented three verification evaluations that demonstrate the emission inventory, especially the motor vehicle component of the inventory, has improved in recent years and is now much more representative of actual emissions.

The staff committed to seek Board review of the inventory before three years have elapsed if significant changes with major policy consequences are suggested by new information.

In response to a request from the California Council for Environmental and Economic Balance, the Board continued its consideration of the inventory to the December 11, 1997, Board meeting in San Francisco to allow further discussion of the section of the report dealing with using ambient air quality data to verify the inventory. At the December meeting, the Board will limit discussion to the verification portion of this item.


Michael C. Block
Engine Manufacturers Association

Robert Lucas
California Council for Environmental and Economic Balance

Michael Wang
Western States Petroleum Association



STAFF REPORT: Yes (59 pages plus attachments)