State of California
AIR RESOURCES BOARD

Golden Gateway Holiday Inn
Emerald Room
1500 Van Ness
San Francisco, CA

April 23, 1981
10:00 a.m.

AGENDA

Page

81-7-1 Public Hearing to Consider Amendments to Title 17, 001
California Administrative Code, Regarding the Air
Resources Board's Subvention Program and to Adopt
Local District Program Objectives and Classifications
for the 1981-82 Fiscal Year.

81-7-2 Other Business
a. Executive Session
Personnel
Litigation
b. Research Proposals
c. Delegations to Executive Officer

ITEM NO.: 81-7-1

Public Hearing to Consider Amendments to Title 17, California
Administrative Code, Regarding the Air Resources Board's
Subvention Program and to Adopt Local District Program Objectives
and Classifications for the 1981-82 Fiscal Year.

SUMMARY AND STATEMENT OF REASONS FOR PROPOSED RULEMAKING

Health and Safety Code Sections 39800-39811 establish a program,
administered by the Air Resources Board (the "Board"), by which
funds are subvened to local air pollution control districts.
Current Board regulations, Sections 90100-90500 of Title 17,
California Administrative Code, establish the procedures and
standards for the subvention program. Prior to January 1, 1981,
Health and Safety Code Section 39806 provided that the Board
could only subvene funds to local districts which were "actively and
effectively" engaged in the reduction of air contaminants
pursuant to specified programs. The Board's current regulations,
which were substantially revised at a March 26, 1980 hearing,
provide that the determination whether a district is engaged in
an "active and effective" program shall be made on the basis of
local district program objectives established and annually
reviewed by the Board in cooperation with the local districts.
The program objectives contain separate criteria for large urban,
small urban, and rural districts, and the Board's regulations
provide that the Board shall annually review classification of
the districts into one of the three categories.

AB 1473 (Stats. 1980, Ch. 176) amended Health and Safety Code
Sections 39806 and 39808 effective January 1, 1981. The
amendment to Section 39806 deleted the requirement that in order
for a district to receive subvened funds it must be "actively and
effectively" engaged in a program to reduce air pollution, and
provides for the establishment of criteria for the evaluation of
district programs.

The Board staff have proposed amendments to Board regulations to
bring them into conformity with AB 1473 and to accomplish minor
program adjustments. Staff have also proposed for Board adoption
district program objectives, to serve as the evaluation criteria
required by AB 1473, and district classifications for fiscal year
1981-82.

The proposed amendments will eliminate reference to "active and
effective" district programs, provide for the submittal of a
disbursement request by local districts to enable payment of the
first half of subvention funds before the submittal of a
completed subvention application, eliminate the requirement for
local district submittal of an interim report, and make other
technical changes. These changes are necessary to conform the
regulations to the amendments resulting from AB 1473, to enable
timely payment to the districts, and to eliminate unnecessary and
costly paperwork.

The proposed local district program objectives for fiscal year
1981-82, proposed as the criteria mandated by AB 1473, are
generally the same as those the Board adopted for fiscal year
1980-81. The following changes are proposed:

1. The requirement for area source emission inventory updates
is revised. This reflects ongoing discussion by the
Emission Inventory Technical Advisory Committee.

2. Specific requirements for bulk plant and bulk terminal
inspections are revised. This change was made at the
request of the local districts to insure that the
inspections are conducted more efficiently.

3. The requirement for inspection of service station Stage II
vapor recovery equipment is made more specific. This change
was made at the request of the local districts.

4. The requirement for inspection of service station Stage II
vapor recovery equipment is made more specific. This change
was made at the request of the local districts.

5. The requirement for incorporating nonattainment plan related
emissions allocation mechanisms is deleted. This change
reflects a shift in priorities toward development of the
1982 SIP revisions.

6. The program element for Prevention of Significant
Deterioration is revised to require consideration of a new
New Source Review/Prevention of Significant Deterioration
(NSR/PSD) rule. This change more specifically ties the
program element to current program directions.

The proposed district classifications are unchanged from those
for fiscal year 1980-81.

The staff report contains additional descriptions of the proposed
changes, their rationale and necessity, and any references relied
on.