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.