Briefing for New Air Resources Board Members - August 2004 -

1. California Environmental Protection Agency Air Resources Board Briefing for New Air Resources Board Members- August 2004 -

2. OVERVIEW • Organization • Initiatives • Major Programs

3. ORGANIZATION

4. Air Quality Regulation in California • Air Resources Board • Cars, trucks/buses, off-road equipment (like forklifts, lawnmowers, boats), fuels/refueling, consumer products • Other State agencies • Department of Pesticide Regulation (agricultural and commercial pesticides) • Bureau of Automotive Repair (Smog Check) • 35 independent local air districts • Stationary facilities and areawide sources • U.S. Environmental Protection Agency • Interstate transportation, farm/construction equipment

5. Communications Legislative Affairs Health Advisor Ombudsman Science and Advanced Technology General Counsel Diane Johnston Chief Deputy Executive Officer Tom Cackette Deputy Executive Officer Michael Scheible Deputy Executive Officer Lynn Terry Administrative Services Division Planning & Technical Support Division Office of Legal Affairs Mobile Source Control Division Stationary Source Division Enforcement Division Mobile Source Operations Division Research Division Monitoring & Laboratory Division Office of Information Services ARB Organization Air Resources Board Members Chairman Alan C. Lloyd, Ph.D Executive Officer Catherine Witherspoon

6. Air Resources Board • Eleven members appointed by Governor • 5 representatives from air districts • 4 members with specific technical expertise • 2 public members • Responsibilities • Adopt regulations, programs, policies • Establish State air quality standards • Approve research contracts • Full-time Chairman provides on-going policy direction to Executive Officer

7. ARB Executive Officer • Delegated all authorities except those the Board specifically reserves for itself • Responsible for day-to-day operations • Directs and manages ARB staff • Issues executive orders to implement Board programs • Finalizes regulations after Board hearings

8. ARB Staff • 960 employees • Principally engineers and scientists • Sacramento - 2 locations • Headquarters in Cal/EPA building • Northern laboratory • El Monte • Vehicle controls, testing, and certification • Southern laboratory

9. ARB Budget FY 2004-05 • Staff, operations and contracts: $153 million • $111 million for staffing and operations • $11 million for research & contracts • $31 million for incentive programs • Subvention (pass-through) to districts: $10 million • Budget reductions since FY 2000-01: • Staffing and operation costs cut by 24% • Staff positions cut by 9%

10. INITIATIVES

11. Initiative: Reduce Air Pollution by 50% • Governor’s Action Plan sets 50% reduction goal • ARB must adopt measures necessary to attain federal and State air quality standards • State Implementation Plan (SIP) defines near-term rulemaking calendar • 20 State measures for action by 2006 • Approved commitments are federally enforceable • ARB’s diesel program will reduce cancer risk, mortality from particulates, and ozone precursors • Other air toxics measures under development

12. Initiative: Reduce the Health Impact ofDiesel Engines Goals: 75% risk reduction by 2010 85% risk reduction by 2020 Reduce mortality & asthma effects • Adopt requirements for modernization/retrofit of existing fleet • Adopt tighter standards for new diesel off-road equipment • Provide incentives to replace or retrofit sooner

13. Initiative: Advance Clean Air Technology for a Sustainable Future • Reduce greenhouse gas emissions from new cars • Support Hydrogen Highway and infrastructure • Continue fuel cell demonstration projects • Reduce petroleum dependence • Use incentives to commercialize new technologies

14. Initiative: Improve Children’s Health and Promote Environmental Justice • Continue regulatory actions to reduce community exposure to air pollution -- especially children • Update air quality standards to protect children • Expand efforts to improve indoor air quality • Integrate environmental justice into all ARB programs

15. Initiative: Vigorous Enforcement of Air Quality Regulations Strong enforcement is necessary to achieve emission reductions from state and local rules: • Oversee local district enforcement programs • Expand activities on newly regulated sources like off-road equipment and vehicle fleets • Increase focus on in-use emissions • Expand diesel truck smoke inspections in communities

16. Research Scientific basis for control Clean air plans Mobile source control Clean fuels Environmental justice Air toxics Consumer products District oversight Enforcement MAJOR PROGRAMS

17. Research Understand the nature, causes, and effects of air pollution to improve public health protection • Emphasis on health studies (effects and exposure), plus promising control technologies • Review air quality standards for children’s health • Continue environmental justice and vulnerable populations related research

18. ResearchARB Program Through in-house work, joint studies, and contracts: • Evaluate effects of air pollution on human health and identify health-protective standards • Assess impacts of air pollution on the environment • Develop new air quality and emission measurement technology and procedures • Evaluate and incentivize clean air technologies • Improve methods for assessing the economic benefits and costs of environmental strategies

19. Scientific Basis for Control Strong science is the foundation for control programs • Improve technical tools to address new federal ozone and particulate matter requirements • Integrate science on ozone, particulate matter, and toxics in upcoming SIPs • Improve community level assessment tools • Evaluate emissions from agricultural activities subject to new State and federal requirements

20. Scientific Basis for ControlARB Program • Ambient monitoring identifies the nature and location of pollution problems; also provides information about pollutant transport • Emission inventories describe the sources of pollution, including spatial and temporal variations • Air quality models help determine the necessary reductions, evaluate controls, assess transport, and estimate community exposure

21. Clean Air Plans Clean air plans identify the strategies needed to attain health-based air quality standards • By 2007, new SIPs must be developed to meet federal 8-hour ozone and PM2.5 standards by applicable deadlines • Emissions in air quality and transportation plans must conform to preserve federal funding • Plans required for the State ozone standard must include all feasible measures to show progress • ARB must ensure districts adopt controls to mitigate downwind transport of air pollution

22. Clean Air Plans ARB Role • Provide technical tools for use in clean air plans • Define State emission reduction strategy and needed federal contribution • Review and approve local elements of SIPs and district plans for State standard • Integrate local, State, federal components to demonstrate attainment and progress • Submit SIPs to U.S. EPA

23. Mobile Source Controls Mobile source program requires continued advances in technology plus incentives to speed turnover • Low-Emission Vehicle II (LEV II) program calls for cars and light-duty trucks with >99% control • New standards for diesel trucks and off-road engines call for 98% control • Major focus on cleaning up existing engines • New mandate to cut greenhouse gas emissions • Governor’s initiative to create Hydrogen Highway

24. Mobile Source ControlsARB Program • Set emission standards for new vehicles/engines • Certify vehicles for sale in California • Conduct testing/recall to ensure in-use compliance • Require engine retrofits/replacement • Use incentives to clean up engines earlier • Limit idling to reduce exposure • Push for national standards on sources California is preempted from regulating • Supplement with local mobile source programs

25. Mobile Source Controls: Cars/Light Trucks • Low Emission Vehicles (LEV) II program is reducing emissions from new cars, light trucks, sport-utility vehicles and minivans • Zero-emission vehicle (ZEV) element includes mix of battery-powered, fuel cell, and hybrid vehicles • To clean up existing fleet, evaluating parts replacement, scrappage, and Smog Check • U.S. EPA’s national Tier II vehicle standards and cleaner gasoline based on California program

26. Mobile Source Controls:Greenhouse Gases • State law directs ARB to adopt regulations to achieve maximum feasible, cost-effective reduction of greenhouse gas emissions from motor vehicles • June 2004 draft staff proposal would reduce emissions from cars and light trucks by nearly 30% with phase in between 2009 and 2014 • Automakers threatening litigation over ARB’s authority to regulate greenhouse gases • Board hearing scheduled for September 2004

27. Mobile Source Controls:Hydrogen Economy • Hydrogen Highway plan calls for up to 200 fueling stations for hydrogen vehicles by 2010 • Cal/EPA to develop Hydrogen Economy Blue Print Plan by January 1, 2005 to accelerate hydrogen use • California Fuel Cell Partnership formed in 1999 to support development of fuel cell powered vehicles • California Stationary Fuel Cell Collaborative formed in 2001 to accelerate fuel cell commercialization for stationary applications

28. Mobile Source Controls: Smog Check • Smog Check is critical to meeting air quality standards; also required by federal law • BAR operates program, but ARB responsible for ensuring Smog Check SIP commitment met • Need more reductions from Smog Check • 2004 ARB/BAR report recommends improvements • Remote sensing may help identify high emitters • Long-term goal to transition to lower-cost electronic inspection once newer technology vehicles dominate the fleet

29. Mobile Source Controls: Heavy-Duty Trucks/Buses • Adopted 2007standards for new trucks and buses require advanced technology • Carl Moyer and school bus incentive programs • Over $200 million in incentives for clean engines to date • $61 million/year funding with 2004-05 budget • Program to upgrade truck software to reduce excess emissions is underway • Diesel emission reduction measures • Urban transit bus and trash truck measures adopted • Public and private fleet measures under development

30. Mobile Source Controls: Off-Road Sources • Off-road vehicles and equipment are the largest remaining source of under controlled emissions • Post-2010, new off-road diesel engines will be controlled to same levels as on-road engines • Retrofit/fleet modernization rules for existing diesel engines and forklifts needed for near-term benefit • ARB playing key role in multi-state/national efforts to reduce emissions from ships and port activities • Locomotives remain a significant source of emissions and risk (especially near railyards) • Aircraft growth outpacing emission controls

31. Clean Fuels Clean fuels reduce emissions from the existing fleet and allow new vehicles to meet tighter standards • Low sulfur diesel fuel required by 2006 • Enables advanced emission controls (PM traps) • Add requirement for in-state ships and locomotives • Federal requirements increase ethanol in gasoline • Need to address ethanol permeation • Continue reducing fueling emissions (service stations, storage tanks, and gas cans) • Support hydrogen fuel infrastructure

32. Clean FuelsARB Program • Set fuel specifications to reduce emissions from vehicles and off-road equipment • Provide flexibility for alternative fuel blends that offer equivalent air quality benefits • Ensure adequate fueling infrastructure • Sample fuel at service stations statewide • Test fuel to ensure compliance with state requirements

33. Environmental Justice ARB continues to integrate environmental justice into all its programs • Reduce air pollution/health risk in all communities through regulations and incentive programs • Work with districts to strengthen local enforcement • Ensure public access to information • Continue community assessments and research • Advise land use agencies on potential air quality impacts of siting decisions • Provide training to ARB staff

34. Air Toxics Ambient exposure to toxics down by half statewide; continue focus on reducing public exposure • Develop new control measures and tighten existing measures where needed • Reduce toxic diesel particulate matter • Strengthen chrome plating and dry cleaning rules • Cut formaldehyde in composite wood products • Give special consideration to children’s health in setting priorities • Consider identification of environmental tobacco smoke as an air toxic

35. Air ToxicsARB Program • Identify “ toxic air contaminants” with Office of Environmental Health Hazard Assessment and Scientific Review Panel • Adopt statewide control measures for enforcement by local air districts to reduce ambient exposure • Oversee “Hot Spots” Program - facility inventory, risk assessment/reduction, and public notification • Develop source test methods for identified toxics • Operate largest toxics monitoring network in nation

36. Consumer Products Consumer products continue to be a major source of ozone-forming emissions in California • About 100 product categories already regulated • Adopted latest standards in June 2004 • Additional proposals due in 2005/2006 and 2008 • Large cumulative emissions and continued growth in product use make further reductions essential • Continuing to pursue effective measures, including reactivity-based approaches

37. Consumer ProductsARB Program • Adopt content limits for volatile organic compounds (VOC) in consumer products and aerosol paints • State law requires that standards be technologically and commercially feasible; cannot ban product forms • Routinely review future effective standards between adoption and implementation to ensure feasibility • Refine emissions inventory based on updated formulations, sales data, and expected growth • Develop product test methods • Pull sample of products from store shelves and laboratory test for compliance with standards

38. District Oversight ARB oversees local district programs to ensure their effectiveness • Assure most effective control technology is used for new and existing stationary sources • Review and approve district clean air plans/SIPs • Audit district enforcement and permitting programs • Establish statewide smoke management requirements for districts • Collaborate on community health and environmental justice issues

39. Enforcement Active enforcement program is critical to achieve emission reductions and meet air quality standards • ARB’s progressive enforcement policy maximizes the effectiveness of control measures • Adequate fines and penalties for deterrence • Increased penalties for repeat violations • Timely resolution of violations • Publicized enforcement actions

40. EnforcementARB Program • Direct enforcement of state regulations • Motor vehicle certification, audits, in-use compliance, and recall • Heavy-duty vehicle inspection programs • Fuels and consumer products enforcement • Oversight and audit of local district programs • Assistance to small/rural districts • Training and compliance assistance programs

41. \\ptsd\aqtpb\share\briefings\new board members 2004\New Board Member Briefing-2004.ppt8/10/04