Meeting was called to order at 9:04 a.m
Present: Members Bill Horn, Chairman; Ron Roberts, Vice Chairman; Greg Cox; Dianne Jacob; also Thomas J. Pastuszka, Clerk.
ABSENT:  Supervisor Pam Slater

Approval of Air Pollution Control Board Statement of Proceedings/Minutes for meeting of June 20, 2001.

ACTION:
ON MOTION of Member Cox, seconded by Member Jacob, the Air Pollution Control Board approved the Statement of Proceedings/Minutes for the meeting of June 20, 2001.

AYES:      Cox, Jacob, Roberts, Horn
ABSENT:  Slater

NOTICED PUBLIC HEARING:

2001 TRIENNIAL REGIONAL AIR QUALITY STRATEGY REVISION
 

APCD 1.

SUBJECT:

NOTICED PUBLIC HEARING:

2001 TRIENNIAL REGIONAL AIR QUALITY STRATEGY REVISION (DISTRICTS:  ALL)

San Diego County has been designated by the California Air Resources Board (ARB) as a Serious nonattainment area for the state ambient air quality standard for ozone (the primary component of smog).  The California Clean Air Act (state Act) requires air districts in nonattainment areas to prepare an air quality strategy identifying feasible emission control measures to attain state air quality standards as early as possible and provide annual and triennial progress reports.  Triennial strategy revisions reflecting new data regarding technical feasibility, emission reduction potential, and cost-effectiveness of measures are also required and must be adopted by your Board after a public hearing.  

The Regional Air Quality Strategy (RAQS) was initially adopted on June 30, 1992 (APCB #1), and amended on March 2, 1993 (APCB #1), in response to ARB comments.  Triennial revisions were adopted on December 12, 1995 (APCB #3) and June 17, 1998 (APCB #4). 

In this third triennial revision, air quality improvements and emission reduction trends are reported; RAQS implementation from 1998 to 2000 is addressed; and the control strategy for ozone precursors (volatile organic compounds (VOC) and oxides of nitrogen (NOx)) is revised to incorporate new feasible control measures. 

The state Act requires an air quality strategy to achieve a 5% average annual ozone precursor reduction when implemented or, if that is not achievable, an expeditious schedule for adopting every feasible emission control measure must be included.  The RAQS reflects expeditiously adopting every feasible control measure.  No air district in the state can demonstrate sustained 5% average annual ozone precursor reductions. 

Air Quality Improvements

State law requires triennial assessments of progress towards attaining the state clean air standards.  Despite continued growth in population and motor vehicle usage, air quality has steadily improved because of effective emission controls on motor vehicles and industry.  In 2000, air quality in the region was the best on record, with no exceedances of the federal one-hour ozone standard for the second consecutive year.  The more stringent state ozone standard was exceeded on just 24 days in 2000.  For comparison, in 1990, the federal and state standards were exceeded on 39 and 139 days, respectively. 

In addition to monitored air quality data, three statistical indicators are used to assess progress toward attaining the state ozone standard; specifically, population-weighted and area-weighted annual exposures to unhealthy ozone levels regionally, and the maximum daily ozone concentration expected to occur once per year at each monitoring site.  Population-weighted exposure is a statistical estimate of outdoor exposure for the average person living in San Diego County.  Area-weighted exposure is a statistical measure of exposure in an average square kilometer of the County.  The peak concentration indicator tracks progress at each monitoring site, indicating the locations where higher concentrations occur.  Each indictor has been computed for San Diego County pursuant to ARB guidance, illustrating changes from a three-year base period (1986-88, the state Act was enacted in 1988) to a three-year end period (1997-99, because the indicators were computed in 2000).  The indicators are averaged over three-year periods to reduce the variable influence of year-to-year meteorology changes and thus to better represent trends.  

Population exposure to unhealthy ozone levels has been reduced by 95% between 1986-88 and 1997-99, while area-weighted exposure has been reduced by 84%, indicating substantial improvement.  Population exposure has improved more than the area-wide average exposure, reflecting greater improvements in the populated coastal areas.  The most dramatic improvements occurred at the Del Mar and Oceanside monitoring sites, which had the two highest ozone concentrations in the 1986-88 base period.  Peak ozone levels at these sites decreased by 46% and 40%, respectively, to become the two cleanest sites in the 1997-99 period.  The improvement at the coastal sites primarily reflects reduced pollution transported over the ocean from the South Coast Air Basin.  The two highest ozone concentrations for the 1997-99 period occurred at the inland monitoring sites in Alpine and El Cajon where there were less dramatic, but still significant, reductions in peak ozone levels (20% and 24% respectively). 

Emissions reductions over the last three years exceeded previous projections in the RAQS.  Regionwide daily VOC emissions decreased 26 tons (285 to 259 tons) between 1997 and 2000, a 3.1% average annual reduction, far exceeding the projected 2.0% reduction.  Regionwide daily NOx emissions decreased 20 tons (255 to 235 tons), a 2.7% average annual reduction, exceeding the projected 2.0% reduction.  The additional reductions resulted primarily from greater than projected benefits of motor vehicle pollution controls. 

The other study measure, Control of Bulk Gasoline Storage Tank Degassing, is now proposed for future adoption.  This measure will be implemented by policy until Rule 12.1 (Portable Equipment Registration) is amended to ensure that such equipment used in San Diego County is operated properly and is registered or permitted with an air district. 

The remaining three scheduled measures are being delayed due to unresolved issues regarding technical feasibility, emission reduction potential, or cost-effectiveness.  These measures will be retained in the RAQS and rule adoption will be pursued, if appropriate, after outstanding issues are resolved. 

Further Control of Solvent Cleaning Operations:  Rule amendments were intended to reflect control requirements in South Coast AQMD Rules 1122 and 1171.  The amendments were not adopted due to questionable cost-effectiveness, concerns regarding the feasibility of aqueous cleaning technology as a replacement for all existing cold solvent cleaners, and concern about the actual effectiveness of the South Coast AQMD Rules on which this control measure is based.  ARB has been requested to conduct a rule-effectiveness study on the South Coast measures to determine compliance rates, actual emission reductions, and actual compliance costs. 

Further Control of Bakery Ovens:  In the 1998 RAQS, amending Rule 67.24 was scheduled for 2000 to meet state requirements for Best Available Retrofit Control Technology (BARCT) by lowering the exemption threshold from 50 to 25 tons per year and increasing the VOC control requirement from 90% to 95%.  Adoption of the measure has been delayed because there are currently no bakeries in San Diego County with VOC emissions between 25 and 50 tons per year, and thus the lower threshold will not result in any emission reductions.  Additionally, technical issues have been identified that cast doubt on whether the 95% control requirement can feasibly be achieved. 

Plastic Parts, Rubber, Composite and Glass Coating:  In the 1998 RAQS, the Plastic Parts, Rubber, Composite, and Glass Coating control measure was scheduled for adoption in 2000.  Although in 1998 the estimated VOC emission reduction potential was 24 tons per year, further investigation during rule development in 2000 revealed reductions of only about seven tons per year could be achieved.  The potential emission reduction has decreased because some facilities have closed and others are now utilizing lower VOC solvents.  Therefore, the measure is being delayed, to be reconsidered for adoption during the next triennial planning cycle after higher-reduction control measures are developed.

On November 4, 1998, amendments to the New Source Review (NSR) Rules 20.1-20.4 were adopted, repealing state emission offset requirements for new or modified sources with the potential to emit 15 tons per year or more of NOx or VOC, as authorized by state law.  (Offsets are emission reduction credits created by using more stringent emission controls than required on existing emission sources, or resulting from stationary sources that permanently cease emitting activities (shutdowns)).  Other provisions of NSR rules remain in effect, including state requirements for Best Available Control Technology on equipment emitting 10 pounds per day or more, and Federal requirements for Lowest Achievable Emission Rate control technology and emission offsets for specified projects at major sources (new or modified facilities with the potential to emit 50 tons per year or more of VOC or NOx). 

Pursuant to state law, the impact of program repeal must be reviewed triennially to determine whether the program remains unnecessary to maintain progress toward attaining and maintaining state ambient air quality standards by the earliest practicable date.  Analysis indicates the repeal has not resulted in any net increase in regional emissions and therefore the requirements remain unnecessary to maintain progress toward attaining and maintaining state ambient air quality standards by the earliest practicable date in San Diego County. 

Pursuant to the California Environmental Quality Act (CEQA), an Addendum to the Final Environmental Impact Report (EIR) for the 1991 RAQS has been prepared, examining the potential environmental impacts of the proposed 2001 Triennial RAQS Revision.  The results indicate the proposed RAQS revision will not require major revisions to the previous EIR, result in any new significant adverse impacts, make previously identified significant adverse impacts more severe, or require new mitigation measures or alternatives.  Pursuant to CEQA, the Board must certify that the EIR Addendum reflects the Board’s independent judgment of potential environmental impacts of implementing the proposed RAQS revision.

A public workshop was held on June 29, 2001.  The workshop report is provided in Attachment VI.
 

There is no fiscal impact associated with these recommendations.  The fiscal impact of individual rules will be addressed separately during the rule development process.
 

AIR POLLUTION CONTROL OFFICER

1.     Consider the Addendum to the previously certified Final EIR and adopt the resolution: (a) finding that the EIR Addendum has been completed in compliance with CEQA and reflects the independent judgment of the Board; (b) certifying the EIR Addendum as a true and complete statement of environmental impacts of implementing the proposed RAQS revision and making findings that there is no substantial evidence in the entire record before the Board that the proposed revision will have a significant adverse effect on the environment; and (c) finding that there is no evidence that adopting the proposed RAQS revision will have potential for an adverse effect on wildlife resources or the habitat on which the wildlife depends, and, on the basis of substantial evidence, that the presumption of adverse effect in California Code of Regulations, Title 14, Section 753.5(d) has been rebutted. 

2.     Approve the Certificate of Fee Exemption for De Minimis Impact Finding exempting the District from payment of fees to the California Department of Fish and Game.

3.     After certifying the EIR Addendum, adopt the resolution adopting the 2001 RAQS Revision.  The resolution certifies the revision is a cost-effective strategy and the Board has adopted or scheduled for adoption every feasible control measure to achieve and maintain the state ozone standard by the earliest practicable date.  It also finds that the repealed state emission offset requirements remain unnecessary to achieve and maintain the state ozone standard by the earliest practicable date. 

4.     Direct the Air Pollution Control Officer to forward the 2001 Triennial RAQS Revision, along with the EIR Addendum and adopting resolutions, to the California Air Resources Board for approval.
 

ON MOTION of Member Cox, seconded by Member Jacob, the Air Pollution Control District closed the hearing and took action as recommended, adopting Resolution No. 01-244, entitled: RESOLUTION ADOPTING THE 2001 TRIENNIAL REGIONAL AIR QUALITY STRATEGY REVISION, AND MAKING RELEVANT FINDINGS.

AYES:       Cox, Jacob, Roberts, Horn

ABSENT:  Slater

APCD 2.

SUBJECT:

2001 CARL MOYER PROGRAM FUNDING ALLOCATION (DISTRICTS:  ALL)  (4 VOTES)
 

The Carl Moyer Program (Moyer) was created by the Legislature in the FY 98/99 state budget.  The program is intended to reduce emissions from heavy-duty vehicles by providing incentives to replace older, high-emitting diesel engines with newer, cleaner engines.  Heavy-duty diesel engines are high emitters of nitrogen oxides (NOx), a precursor to ozone, and emissions from diesel engines have been identified by the California Air Resources Board (ARB) as a toxic air contaminant.  As a result, reducing heavy-duty engine emissions is one of the most cost-effective pollution control measures available.

Your Board authorized the District to apply for and accept the FY 2000-01 Moyer funds when offered (10/25/00 APCB #3).  ARB administers this program, develops guidelines, and allocates funds to air districts.  San Diego received $1,085,661 in first-year funding (FY 1998-99), $809,498 in second-year funding, and $1,850,344 for FY 2000-01.  Projects recommended for Moyer funding must comply with ARB guidelines and are subject to ARB review and final approval.   

On October 25, 2000 (APCB #3), your Board approved postponing the Vehicle Registration Fund allocation plan until state guidelines were revised to determine the amount of Vehicle Registration funds, if any, needed for the match.  With funding doubling, the amount needed for the local match would have increased to $925,172.  However, the law was changed leading to new guidelines in December 2000, modifying the local match requirement to $1 for every $2 of funding up to a maximum equaling the District’s match in the first year of the program ($503,495 for San Diego).  The required match will be met with the Metropolitan Transit Development Board, $540,000 Vehicle Registration Fund project for transit buses and a fueling station (04/25/01, APCB #3). 

On April 27, 2001, the District issued a Request for Applications for eligible projects.  Thirty-seven proposals were received from 19 applicants requesting $3.94 million to repower or replace 101 heavy-duty diesel engines.  Six categories of diesel engine projects are eligible for funding: on-road, off-road, locomotive, marine, stationary source (agricultural), and other (e.g., forklifts).  Only the incremental cost associated with each project is eligible for funding.  Applications were received in three of the six categories: on-road, marine projects, and forklifts.  Only projects in the on-road and marine categories were eligible.  Ineligible projects either did not meet the minimum cost-effectiveness requirement ($13,000/ton) or the minimum emissions reduction required for the difference between the old engine and the proposed new or retrofitted engine. 

A summary of each proposed project is included in Attachment I.  Table 1 lists projects recommended for funding.  Table 2 lists all projects submitted including the funding amount requested, amount eligible, amount recommended (where applicable), and cost-effectiveness.  Cost-effectiveness is a measure of NOx emission reductions to dollars spent.  The guidelines do not provide for particulate matter (PM) emission reductions to be a factor in project ranking; however, PM reductions were calculated because it is an additional benefit.  The recommended projects would reduce PM emissions by 41.1 tons. 
 

The recommended actions will allocate $1,850,344 from FY 2000-01 Carl Moyer Program funds to projects reducing emissions from heavy-duty engines.  There is no net County cost associated with this action.
 
 

AIR POLLUTION CONTROL OFFICER

1.     Approve the recommended 2001 Carl Moyer Program projects and authorize the Air Pollution Control Officer to forward project applications to the California Air Resources Board for final approval.

2.     Establish appropriations of $1,850,344 in the Air Pollution control District Moyer Program fund based on fund balance available from FY 2000-01 Moyer Program revenue.             (4 VOTES)

3.     Authorize award of contracts by the Department of Purchasing and Contracting for approved Moyer Program emission reduction projects, subject to successful negotiations, as determined by the District.

4.     Authorize the Air Pollution Control Officer to apply for and accept future Moyer funding when available. 

AYES:  Cox, Jacob, Roberts, Horn

ABSENT:  Slater

There being no further business, the Board adjourned at 10:02 a.m.

THOMAS J. PASTUSZKA
Clerk of the Air Pollution Control Board
San Diego County Air Pollution
Control District

Notes by:  Lampley

NOTE: This Statement of Proceedings sets forth all actions taken by the San Diego County Air Pollution Control Board on the matters stated, but not necessarily the chronological sequence in which the matters were taken up.