CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY
                      AIR RESOURCES BOARD
                                
                    South Coast Air Quality
                      Management District
                    21865 East Copley Drive
                        Diamond Bar, CA
                                
                         March 10, 1994
                           9:00 a.m.
                                
                             AGENDA

                                                             Page

94-3-1    Public Meeting to Consider the South Coast          001
          Air Quality Management District's Regional
          Clean Air Incentives Market (RECLAIM).

94-3-2    Public Meeting to Consider Research Proposals.      059


Other Business

                         ITEM NO.: 94-3-1

Public Meeting to Consider the South Coast Air Quality Management
District's Regional Clean Air Incentives Market (RECLAIM).

                          RECOMMENDATION

That the Air Resources Board ("the Board" or "ARB") find that the
Regional Clean Air Incentives Market (RECLAIM) program adopted by
the South Coast Air Quality Management District (District) meets
the requirements for market-based incentive programs set forth in
Health and Safety Code (H&SC) sections 39616 and 40440.1, and
applicable provisions of the California Clean Air Act.

                            DISCUSSION

In October 1992, the Board conditionally approved the District's
1991 attainment plan.  The control strategy in that plan included
RECLAIM as a substitute measure for 20 source-specific measures
that had been committed to previously.

In taking this action, the Board stipulated a July 1993 deadline
for adoption of the RECLAIM regulation.  Failing that, the
District was to submit a schedule for adopting and implementing
contingency measures as expeditiously as possible.  In July 1993,
the District notified ARB that it was on the verge of adopting
RECLAIM for NOx and SOx.  At the same time, the District elected
to restore its regulatory calendar for hydrocarbon rules, given
the difficulties it had encountered on that aspect of the
program.  RECLAIM for NOx and SOx was adopted by the District
Board on October 15, 1993, and formally submitted to the ARB on
February 4, 1994.  State law requires the Board to determine,
within 90 days of any district's submittal of market-based
incentive rules, that statutory requirements affecting market-based 
incentive programs have been met.

Specifically, the Board is to determine whether RECLAIM will be
as effective as the rules it replaces and result in the same rate
of progress.  The Board must also evaluate the socio-economic
impacts of RECLAIM.  As part of its prior plan approval, the
Board must also determine whether RECLAIM satisfies elements of
the California Clean Air Act relating to stationary source
permitting and retrofits.

                       SUMMARY AND IMPACTS

Successful implementation of RECLAIM will reduce emissions of
nitrogen oxides (NOx) 65% from 1994 levels by 2003, and will
reduce emissions of sulfur oxides (SOx) 58% in that same time
frame.  This is equivalent to reductions identified in the south
Coast's 1991 plan for the same categories of sources.  Comparable
to assumptions made in the 1991 plan, post-2000 reductions depend
upon the development of advanced technologies.