CALIFORNIA AIR RESOURCES BOARD Lincoln Plaza Auditorium, First Floor 400 "P" Street Sacramento, CA July 13, 1989 9:00 a.m. AGENDA Page 89-13-1 Report on California Solvents Control Effort: 001 a. Air Resources Board and District Effort on Industrial, Architectural, and Other Solvents. b. Consumer Products Control Plan. 89-13-2 Public Hearing to Consider the Adoption of 041 Regulations Regarding Annual New Motor Vehicle Certification Fees Pursuant to the Provisions of the Clean Air Act of 1988. 89-13-3 Public Hearing to Consider the Adoption of a 060 Regulatory Amendment Identifying Methylene Chloride as a Toxic Air Contaminant. 89-13-4 Consideration of Appointment of Modeling Advisory 659 Committee Members. 89-13-5 Consideration of Research Proposals: 660 Proposal 1673-145B, "Perform Ozone and PM Case Study Analyses", Submitted by Sonoma Technology Inc., for a Total Amount Not to Exceed $24,992. Proposal 1690-147, "Analysis of the 1987 Southern California Air Quality Study (SCAQS) Atmospheric Tracer Data", Submitted by the California Institute of Technology for a Total Amount not to Exceed $77,660. Proposal 182-30, "Long-term Studies of Lakes and Watersheds in the Sierra Nevada: Patterns and Processes of Surface Water Acidification", Submitted by the University of California, Santa Barbara, for a Total Amount Not to Exceed $399,996. SUMMARY ITEM #89-13-1 Report on California's Solvent Control Efforts. RECOMMENDATION There is no staff recommendation. This is an informational item. DISCUSSION This item is divided into two parts. Part A of this item is an oral presentation outlining Air Resources Board (ARB) staff oversight of local district activities related to architectural coatings, industrial coatings, and industrial solvent-use. Part B of this item reports on ARB staff activities related to consumer products, a source category for which ARB has direct regulatory authority. Part B presents our control plan for reducing VOC emissions from consumer products as required by the California Clean Air Act (CCAA). ITEM #89-13-2 Public Hearing to Consider Adoption of Regulations Regarding Annual Motor Vehicle Certification Fees Pursuant to the Provisions of the California Clean Air Act of 1988. RECOMMENDATION The staff recommends that the Board adopt the proposed regulations governing annual certification fees. The proposed regulations would provide the mechanism for collection of annual certification fees which will be used to fund mobile source activities required under the California Clean Air Act. DISCUSSION In September 1988, the California Clean Air Act of 1988 was signed into law (AB 2595, Stats 1988, ch 1568). The statute directs the Board to attain all ambient air quality standards by the earliest practicable date, achieve steady measurable progress in emission reductions each and every year until these standards are attained, and gives the Board broader regulatory authority over transportation and nonvehiclular mobile sources. In order to support these activities, the Act authorizes funding through a combination of motor vehicle and engine certification fees and permit fee surcharges on major industrial facilities. Most of the motor vehicle related activities required under the statute begin to occur in the first years of its implementation. As a result, the staff has identified approximately $4,500,000 in expenses related to mobile sources for Fiscal Year 1989-90 and is proposing to collect that amount through annual certification fees. In subsequent years, total fees may increase but cannot exceed the annual increase in the California Consumer price Index for the previous year. Pursuant to Health and Safety Code Section 43019, the staff is proposing regulations which will establish annual certification fees. The proposal sets forth procedures for calculating the certification fees on a per-vehicle or per-engine basis and specifies a billing process. Specifically, the proposed regulations would: 1) Require that all manufacturers of California-certified vehicles and engines including federally certified vehicles sold in California pursuant to Health and Safety Code Section 43102 be subject to annual certification fees. Vehicles and engines, currently unregulated, would be included in the fee payment scheme as they become regulated. 2) Specify annual fees for a manufacturer proportional to the number of vehicles and engines it produced for California each calendar year. The per-vehicle or per-engine certification fee will be calculated each July. The calculation will be made by dividing the total revenues collected in the previous fiscal year (plus a dollar amount proportional to the annual increase in the California Consumer Price Index), by the total number of vehicles and engines produced for California during the previous calendar year. 3) Require fees to be payable within 30 days following the ARB notification of the amount to be collected for the fiscal year. Manufacturers will be notified by July 31st of each year except for the initial collection in Fiscal Year 1989-90 when they will be notified immediately following the effective date of the regulation. 4) Require certification of subsequent model-year vehicles or engines to be conditional upon the payment of annual certification fees. IMPACT OF THE PROPOSED REGULATIONS The adoption of the proposed regulations would provide funds in the amount of $4,500,00 which will enable the ARB to conduct new programs required under the California Clean Air Act. This amount will be used to establish more stringent standards; develop regulations to control unregulated mobile sources such as construction and farm equipment, locomotives, utility engines and marine vessels; as well as develop and enforcement program to ensure that standards and other regulatory requirements are effective in reducing emissions. The certification fees will also provide resources needed to partially support activities such as technical studies on emissions inventory, air quality modeling and cost effectiveness. ITEM #89-13-3 Proposed Identification of Methylene Chloride as a toxic Air Contaminant (Regulatory). RECOMMENDATION The ARB staff recommends that methylene chloride be identified as a toxic air contaminant with no identified threshold. DISCUSSION In accordance with the provisions of Health and Safety Code Section 39650 et seq, the ARB staff, after consulting the Department of Health Services (DHS), selected methylene chloride for the Board's consideration for listing as a toxic air contaminant. The staff selected methylene chloride because the International Agency for Research on Cancer (IARC) and the Environmental Protection Agency (EPA) have concluded that there is ample evidence that methylene chloride is carcinogenic in animals (IARC considers methylene chloride a possible human carcinogen and the EPA considers methylene chloride a probable human carcinogen); it is emitted from many sources in the state, and so significant reduction in public exposure is expected to result from atmospheric removal processes. As required by Health and Safety Code Section 39661, a report was prepared jointly by the DHS and ARB staffs reviewing the health effects and anticipated exposure levels of methylene chloride. The Scientific Review Panel, which was established by Health and Safety Code Section 39670, reviewed the report. The scientific Review Panel found that the methylene chloride report is without serious deficiency and submitted its written findings to the Board. The Scientific Review Panel has recommended that the Air Resources Board list methylene chloride by regulation as a toxic air contaminant, and found that based on available scientific information, a methylene chloride exposure level below which carcinogenic effects are not expected to occur cannot be identified. SUMMARY AND IMPACTS OF PROPOSED BOARD ACTION The identification of methylene chloride as a toxic air contaminant will not in itself have any environmental and economic impacts. However, specific control measures may be developed subsequent to identification. Analyses of potential environmental and economic impacts will be included in the consideration of such control measures.