CALIFORNIA AIR RESOURCES BOARD State Building Auditorium Room 1138 107 South Broadway Los Angeles, CA June 21, 1990 8:30 a.m. AGENDA Page No. 90-8-1 Public Hearing to Consider Air Resources 001 Board Adoption of Updated Conformity Procedures as a Revision to the State Implementation Plan for the South Coast Air Basin. 90-8-2 Public Hearing to Consider Amendments to a 051 Regulation Limiting the Sulfur Content of Motor Vehicle Diesel Fuel Statewide. 90-8-3 Public Hearing to Consider a Report 075 Regarding Motor Vehicle Toxics Control Plan and Review of Schedule. ITEM NO.: 90-8-1 Public Hearing to consider the adoption of updated conformity procedures for the inclusion in the State Implementation Plan for the South Coast Air Basin. RECOMMENDATION Staff recommends that the Board approve the updated conformity procedures and forward them to the Environmental Protection Agency as a SIP revision. DISCUSSION Federal Conformity Requirements Section 176 of the 1977 federal Clean Air Act amendments prohibits federal agencies and Metropolitan Planning Organizations (MPOs) from approving any project or activity that does not conform to applicable SIP. (SCAG is the MPO for the South Coast Air Basin). The EPA requires conformity procedures in every SIP, based on a policy established in 1981. Chronology of Conformity Actions The 1982 plan for the South Coast Air Basin contained conformity procedures. Those procedures were approved by EPA and will be part of the SIP until EPA receives and approves new conformity procedures. The South Coast District and SCAG updated the 1982 conformity procedures, as part of the 1989 AQMP. The updated procedures have already been implemented locally, but will not become part of the official SIP until they are approved by ARB and EPA for inclusion. Key Changes to the Conformity Procedures The updated conformity procedures are more formal than the original procedures. The original version provided questions for local agencies to ask themselves to determine conformity. The new version establishes four separate processes, for reviewing four different types of local government action. SCAG's role in conformity review has been substantially expanded, though SCAG's authority has remained the same. The new version also provides for more project-by-project review. Ongoing Local Actions Related to Conformity Once the conformity procedures were complete, SCAG began work on conformity handbooks. The handbooks are more detailed explanations of the procedures, for use by local implementing agencies. The handbooks were approved by SCAG's Executive Committee on March 22, 1990, and were reviewed by the District Board on May 4, 1990. Because the handbooks are explicator, only, they are not subject to EPA, ARB or District approval and will not be submitted as a SIP revision. Issues and Concerns The updated conformity procedures would have been approved by Executive Order, if not for the insistent and numerous requests for a public hearing. Local governments resent SCAG's involvement in their permitting activities and mistakenly believe SCAG can and will deny permits (SCAG cannot -- it is not a permitting agency for general development). The construction industry has similar concerns, are reacts heatedly to the jobs/housing balance goal in the 1989 AQMP. these two groups hope that an ARB hearing will in some way change the conformity procedures or the 1989 AQMP. The federal conformity requirement is a lightning rod in its own right. From time to time, environmental groups and slow-growth advocates seize on conformity review as a barrier to further development. The situation is worsened by legal uncertainties. For post-1987 nonattainment areas, there is often substantial confusion as to which plan is controlling for conformity review, and EPA has not always taken a consistent position in this regard. Extent of Board Authority The Board's authority over the conformity procedures is quite limited. The Board is required to adopt all SIP revisions as approved by local designated agencies unless the Board finds that the SIP revision does not satisfy federal law. IMPACT OF PROPOSED ACTION The Board's approval of the conformity procedures would complete the Board's action on the 1989 AWMP for the South Coast Air Basin. This is essentially an administrative matter, since the conformity procedures have already been implemented locally. ITEM NO.: 90-8-2 Proposed Amendments to the Regulation Limiting the Sulfur Content in Motor Vehicle Diesel Fuels. RECOMMENDATION The staff recommends that the Board adopt the proposed amendment to Section 2255 - Sulfur Content of Motor Vehicle Diesel Fuel. DISCUSSION The Board on November 17, 1988, adopted a regulation establishing a statewide sulfur content limit of 500 ppm for motor vehicle diesel fuel. The Board also adopted a regulation limiting the aromatic hydrocarbon content of diesel fuel to 10 percent for large refiners and to 20 percent for small refiners. The adopted regulation for sulfur content contains a less stringent limit of 1500 ppm for diesel fuel dispensed between November 1 and March 31 at altitudes above 3000 feet. In May 1989, the staff reported to the Board on a number of issues that had been identified during the November 1988 Board hearing. Among these issues was a request to further investigate the need for a less stringent wintertime sulfur limit. The staff has completed its investigation and found that there is sufficient information to propose deletion of this wintertime provision. The 1500 ppm sulfur content provision adopted by the Board for diesel fuel dispensed during wintertime at high altitudes was based on the assertion that during the winter high sulfur content jet fuel must be blended with the low sulfur content diesel fuel in order to meet cloud/pour point requirements. Both cloud and pour points are the characteristics of low temperature flow properties of diesel fuels. Staff investigated the need for such a separate limit for wintertime by reviewing refiners' data on the sulfur content of jet and kerosine fuels produced by refiners in the state and by investigating alternatives to jet fuel blending. Refiners' data on jet fuel and kerosine production for the year 1986, show that the sulfur content of the majority of kerosine/jet fuel produced by California refiners is well below the 500 ppm limit. this implies that a 1500 ppm limit is not needed because the resultant diesel/jet fuel blend would have a sulfur content below the 500 ppm limit. Staff also investigated alternatives to the blending with jet fuel such as the use of cloud/pour point depressant additives. It was found that such an alternative is feasible because cloud/pour point depressant additives are currently available in the marketplace and are used by some fleet operators in the winter. These additives can be used at a cost of less than one cent per gallon. The 1500 ppm limit is not needed because either the sulfur content of the jet fuel produced in California already meets the 500 ppm limit or existing cloud/pour point depressant additives could be used to limit the need for jet fuel blending. Also, EPA has announced a proposed rule that, if implemented, would limit the sulfur content of on-highway diesel fuel to 500 ppm. EPA's proposed standard does not include a less stringent wintertime-high altitude sulfur content provision. ITEM NO.: 90-8-3 Public Hearing to Consider a Report Regarding Motor Vehicle Toxics Control Plan and Review of Schedule. RECOMMENDATION Approve the Motor Vehicle Toxics Control Plan for implementation. DISCUSSION Toxic substances emitted into California's ambient air have become an important issue this decade. Sections 39650-39674 of the California Health & Safety Code were enacted in 1983 (Assembly Bill 1807; Stats. 1983, ch. 1047) to require the identification and control of toxic air contaminants to protect public health. Assembly Bill 4392 (AB 4392, Brown and Tanner, Stats. 1988, ch. 940) amended section 39667 and added section 39663 to the Health and Safety Code regarding motor vehicle toxics. Health and Safety Code section 39663 requires the Board to (1) assess and prioritize known and suspected toxic air contaminants emitted by vehicular sources ("motor vehicle toxics") and (2) develop a plan for reducing public exposure to motor vehicle toxics. The first requirement involves the preparation of a report that addresses the nature, extent, and severity of exposure to toxic substances emitted by motor vehicles. This report ("Motor Vehicle Toxics: Assessment of Sources, Potential Risks and Control Measures") was considered by the Board at a public hearing on June 8, 1989. The second requirement of AB 4392 directs the Board to reassess its schedule for reviewing toxic substances and give appropriate emphasis to motor vehicle toxics where it is warranted and to consider a plan, no later than June 30, 1990, for maximizing control of motor vehicle toxics (Health and Safety Code section 39663). In fulfillment of the second requirement of Health and Safety Code section 39663, staff has prepared "Motor Vehicle Toxics Control Plan and Review of Schedule" ("Report"), a report regarding reassessment of the toxics review schedule and the presentation of a motor vehicle toxics plan. The report is summarized below. The June 1989 informational report identified five substances as accounting or 98 percent of the cumulative statewide number of estimated cancer cases attributable to motor vehicles. In decreasing order of risk, these were benzene, 1,3-butadiene, diesel particulate, formaldehyde, and acetaldehyde. An update of the informational report resulted in the addition of styrene to the list of motor vehicle toxics for which cancer risk would be estimated. However, the five above-mentioned substances retained their original rankings. The five high-risk substances mentioned above have either been formally identified (section 93000, Title 17, California Code of Regulations) or are under review for identification as a toxic air contaminant. The board thus has recognized the health risk associated with the emissions of these substances and the proportion of this risk that is attributable to motor vehicles. Staff recommends that the Board find the current classification of these five substances to be appropriate with respect to recognizing the statewide cancer risk associated with their emissions, as well as providing a mechanism for reducing public exposure to vehicular emissions of these substances. The principal elements of the motor vehicle toxics control plan include the "Post-1987 Motor Vehicle Plan" and toxic-specific measures. Large emission reductions of non-methane hydrocarbons (which are major ozone precursors) are projected under the Post-1987 Motor Vehicle Plan. These emission reductions are also expected to result in a proportional and substantial emission/risk reduction of the five high-risk toxic substances identified above. For this reason, the Post-1987 Motor Vehicle Plan is being considered the foundation of the motor vehicle toxics plan called for in AB 4392. A key element in the revised Post-1987 Motor Vehicle Plan will be the effort, which is currently under way, to develop and introduce low and ultra low emitting vehicles. This program alone is expected to result in an approximate 45 percent statewide reduction in NMHC emitted from light-duty vehicles over the period 2000 to 2010 alone. The same proportional reduction in benzene, 1,3-butadiene, formaldehyde, and acetaldehyde is expected, and the number of cancer cases due to these high-risk substances should be substantially reduced by the year 2010. Staff further recommends that the Board continue to monitor progress in reducing motor vehicle toxic substances and develop additional control programs if and when they become necessary.