CALIFORNIA AIR RESOURCES BOARD Lincoln Plaza Auditorium, First Floor 400 "P" Street Sacramento, CA June 11, 1992 9:00 a.m. AGENDA Page 92-9-1 Public Meeting to Consider a Status Report on 001 the Implementation of the Low-Emission Vehicles and Clean Fuels Regulations. 92-9-2 Public Meeting to Consider Planned Air Pollution 006 Research--1992 Update. 92-9-3 Joint Meeting of the Research Screening Committee --- and the Air Resources Board. 92-9-4 Public Meeting to Consider a Report on Funding 094 Sources of California's Air Pollution Control Districts with Budgets Exceeding $1,000,000. 92-9-5 Public Meeting to Consider an Informational Report --- on the Review of Perchloroethylene Risk Values. 92-9-6 Public Meeting to Consider Current Research --- Findings - California Indoor Exposures. 92-9-7 Public Meeting to Consider the Report on Air 113 Quality Trends in California. ITEM NO.: 92-9-1 Public Meeting to Consider a Status Report on the Implementation of the Low-Emission Vehicles and Clean Fuels Regulations. RECOMMENDATION The staff recommends that the Board find that the low-emission vehicles and clean fuels regulations continue to be technologically feasible overall, and that no changes to the motor vehicle emission standards or implementation schedule for those standards are needed at the present time. DISCUSSION In September, 1990, the Air Resources Board approved the low-emission vehicles and clean fuels regulations, which require the phase-in of vehicles certified to increasingly stringent emission standards and ensure the availability of clean fuels needed by the vehicles. Due to the technology-forcing nature of the regulations, the Board directed its staff to report on the status of implementation of the program on a biennial basis. The staff's first report will be presented at this meeting. In assessing the status of implementation of the program, a public workshop was held on February 3 and 4, 1992, to discuss the progress of the vehicle industry in developing low-emission technologies. Also, on March 31, 1992, a public workshop was held to discuss possible modifications to the clean fuels regulations, specifically, early opt-in provisions and test procedures for substitute and new clean fuels. SUMMARY AND IMPACTS Since the initial adoption of the low-emission vehicles regulations in 1990, significant progress has been made toward compliance with the new emission standards. A transitional low-emission vehicle (TLEV) engine family has been certified 18 months ahead of schedule, and certifications of other TLEV engine families are expected this year. Zero-emission vehicles (ZEVs) will also be introduced prior to the mandated phase-in date of 1998; significant effort is being expended to develop an infrastructure for electric ZEVs. As for low-emission vehicles (LEVs) and ultra-low-emission vehicles (ULEVs), development of electrically heated catalysts and other LEV and ULEV strategies has been progressing at a rapid rate. The staff does acknowledge, however, that additional in-use durability demonstrations are needed to fully prove the feasibility of the technologies. Overall, the low-emission vehicle program appears to be on track, and no changes to the schedule or standards are necessary at this time. In the future, the staff will be examining the feasibility of accelerating the phase-in of ULEVs and ZEVs beyond 2003. In the clean fuels area, the Public Utilities Commission has approved the sale of natural gas for use in motor vehicles by non-utilities and the California Energy Commission is tracking the cost and availability of clean fuels. Preliminary notification of the number of clean duel stations each major gasoline supplier must install in the South Coat will be announced in late June. By January 1994, the staff anticipates that over 80 M85 and over 100 natural gas dispensing facilities will have been voluntarily installed throughout the state. Staff anticipates submitting the clean fuel regulations to EPA to comply with the Federal Clean Air Act requirement for a "California Pilot Program." Overall, the clean-fuels program appears to be on track. We are considering possible modifications to the clean fuels regulations concerning "opt-in" and the substitute fuel test procedure, however, such modifications would be the subject of a future Board hearing. ITEM NO.: 92-9-2 Public Hearing to Consider Adoption of a Report Planned Air Pollution Research: 1992 Update, dated April, 1992. RECOMMENDATION The Air Resources Board staff recommends that the Board approve the report Planned Air Pollution Research: 1992 Update. DISCUSSION In establishing the State's approach to achieving clean air, the Legislature has: declared that an effective research program is an integral part of the broad-based statewide effort to combat air pollution in California; directed the Air Resources Board to administer and coordinate all air pollution research funded, in whole or in part, with state funds; directed the Air Resources Board to establish objectives for air pollution research; and directed the Air Resources Board to appoint a Research Screening Committee to give advice and recommendations with respect to air pollution research projects funded by the State. In order to comply with these mandates from the Legislature, the Board meets each year with its Research Screening Committee to review the Board's research program, as outlined in the Planned Air Pollution Research: 1992 Update. This Plan is prepared by the staff, with guidance from the Research Screening Committee. SUMMARY AND IMPACTS OF ACTION The report describes major ongoing research projects and new projects to be funded in Fiscal Year 1992-93. More detailed descriptions of the projects, a summary of recently completed projects, and the Air Resources Board's research budget for Fiscal Year 1992-93 are shown in the Appendices. Board approval of the report Planned Air Pollution Research: 1992 Update will authorize ARB staff to proceed with the research program outlined in the report. ITEM NO.: 92-9-4 Public Meeting to Consider Report on Funding Sources of California's Air Pollution Control and Air Quality Management Districts with Budgets Exceeding $1,000,000. RECOMMENDATION Staff recommends that the Board approve the proposed report for transmittal to the Governor and the Legislature. DISCUSSION Section 42311.1 of the Health and Safety Code requires the Air Resources Board to report on the sources of funding for each air district with an annual budget that exceeds $1,000,000. For the 1990-91 fiscal year (the latest year for which complete data were available), there were 13 such districts. The staff conducted a survey of these 13 districts and prepared a report based on the responses to the questions in the survey. Copies of the draft report were circulated to the districts and other interested parties for review and comment. SUMMARY AND IMPACTS The major finding of the report is that fees charged to regulated industries represent the largest source of district revenues. These fees ranged from 23% to 88% of total revenue for individual districts and constituted about 64% of the total revenue for all of the 13 districts. Energy-related industries, which include oil and gas production, processing, and distribution facilities and the electric utility sector, accounted for about 37% of the total fee revenue for the 13 districts. Local taxes, fines, state subventions, and federal grants each provided between 4 and 5% of total revenue, with numerous miscellaneous sources providing the balance of revenue for these districts.