Lincoln Plaza
Auditorium, First Floor
400 "P" Street
Sacramento, CA

July 9, 1987
10:00 a.m.

AGENDA

Page

87-10-1 Public Hearing to Consider the Adoption of 001
Sections 90616-90619, Title 17, California
Administrative Code, Regarding the Acid
Deposition Fee Program.

87-10-2 Public Hearing to Consider the Adoption of an 035A
Airborne Toxic Control Measure for Benzene
Emissions from Retail Gasoline Service Stations.

87-10-3 Consideration of Agricultural Advisory Committee
Membership.

The Meeting May Be Resumed at 8:30 A.m., July 10, 1987 To Allow
Completion of the Agenda.

Other Business

a. Closed Session
1. Personnel (as authorized by State Agency Open Meeting
Act, Govt. Code Sec. 11126(a).).
2. Litigation (Pursuant to the attorney-client privilege,
Evidence Code Sec. 950-962, and Govt. Code Sec.
11126(q).).
b. Research Proposals
c. Delegations to Executive Officer

ITEM NO.: 87-10-1

Public Hearing to Consider the Adoption of Sections 90616-90619,
Title 17, California Administrative Code, Regarding the Acid
Deposition Fee Program.

RECOMMENDATION

Staff is recommending continuation of fee regulations for fiscal
year 1987-88. No major changes are proposed in the 1987-88
regulations; this action would simply extend the existing
regulations for one year.

DISCUSSION

Based on the continuing need to conduct a comprehensive research
and monitoring program to meet the objectives of the Kapiloff
Act, the Board needs to reauthorize the emission fee regulations
to allow for the collection of emission fees for the fiscal year
1987-88. The proposed fee requirements are based on the calendar
year 1986 emissions data, which are the most current data
available at this time. The statutory maximum fee rate of $5 per
ton of sulfur oxides or nitrogen oxides, the same as the 1986-87
rate, is recommended.

SUMMARY OF IMPACTS OF PROPOSED BOARD ACTION

No significant adverse impacts are anticipated.

ITEM NO.: 87-10-2

Airborne Toxic Control Measure (Benzene) (Regulatory).

RECOMMENDATION

The ARB staff recommends that the Board adopt the proposed
airborne toxic control measure (ATCM) for benzene emissions from
retail service stations.

DISCUSSION

Health and Safety Code Section 39665 requires the ARB Executive
Officer, with the participation of the districts, and in
consultation with affected sources and the interested public, to
prepare a report on the need and appropriate degree of regulation
for substances identified as toxic air contaminants (TAC). The
report must address the estimated levels of human exposure from
the substance, emission sources, atmospheric persistence, the
availability and technological feasibility of airborne toxic
control measures (ATCM) to reduce emissions, the cost of each
ATCM, the availability of less hazardous substitute compounds,
and the potential adverse environmental impacts of implementation
of an ATCM.

In June and July 1986, the Board considered the Benzene Control
Plan (Plan). The Board found that the Plan presents an
appropriate overall course of action for staff to follow in
developing specific benzene control measures. The Plan projected
a potential 50% reduction in the incidence of cancer cases caused
by benzene by year 2000 from a 1984 baseline with implementation
of all planned hydrocarbon and benzene-specific measures
identified in the Plan. The Board directed the staff to work
closely with the districts through the TRG and with affected
industry sources to expeditiously pursue control measure
development for gasoline marketing sources. The TRG participated
in development of the control measures. The highest priority for
marketing control measure development was for service stations
because stations represent 84% of the potential benefits of
controlling all gasoline marketing sources. The service station
ATCM represents approximately 2% of the total potential reduction
in the incidence of cancer cases identified in the Plan.

The proposed measure is patterned after existing vapor recovery
control regulations which are currently in effect in areas in the
state which have not attained the Federal ozone standard. These
existing regulations control gasoline vapors from approximately
90 percent of gasoline consumed in California. The proposed
measure would require controls on most of the remaining 10
percent of gasoline which is consumed in attainment areas of the
state.

The proposed measure requires that ARB-certified Phase I and II
vapor recovery be installed at all new retail service stations
and existing retail service stations with annual gasoline
throughputs of at least 240,000 gallons. Non-retail facilities
and retail facilities with annual gasoline throughputs of less
than 240,000 gallons are not covered by the measure and other
specific facilities are exempt. These facilities are not subject
to the measure because of their minimal effect on benzene
exposures and the disproportionate cost of installing and
maintaining vapor recovery equipment at these facilities.

Existing stations affected by the measure would have two years to
comply after district board adoption. All new retail service
stations constructed after district board adoption would be
required to install vapor recovery controls within one year after
gasoline sales commence. If this measure is adopted by the
Board, districts in attainment areas would have 120 days after
the effective date of Board adoption to propose and 6 months to
adopt the measure or an equally effective or more stringent
regulation.

The primary service station related benzene exposure and cancer
risk occurs near the nozzle during vehicle fueling. Additional
exposures occur to nearby residents and to the general public.
The proposed measure would reduce the individual risk from
vehicle fueling (7 to 51 cancers per million) by 85% and would
reduce the overall cancer incidence from uncontrolled service
station benzene emission by 80% (8 to 59 excess lifetime cancers
reduced). The measure would reduce benzene emissions by 65 tons
and hydrocarbon emissions by 8,100 tons in year 2000, saving
about 2 million gallons of gasoline annually which would
otherwise be emitted to the atmosphere. This measure will also
aid in achieving the State ozone standard and maintaining the
Federal ozone standard in areas where the State standard is
violated but the Federal standard is not. This measure will also
reduce the cancer risk from exposure to total gasoline vapor
which may be significantly greater than the risk from benzene
vapors alone.

Staff considered potential control alternatives to the proposed
ATCM. The control alternatives considered were: 1) banning self-service
stations; 2) requiring the of hold-open latches; or 3)
requiring onboard vehicle vapor controls. Banning self-service
stations or requiring the use of hold-open latches was rejected
because these alternatives do not represent best available
control technology, would not reduce benzene exposure to nearby
residents or the general population, and, in the case of hold-open latches,
would be difficult to enforce. Requiring onboard
vehicle vapor controls was rejected because it would take 20
years to become effective as new controlled vehicles replace
older uncontrolled vehicles.

SUMMARY AND IMPACTS OF PROPOSED BOARD ACTION

Adoption of the proposed ATCM is not expected to result in any
adverse health, safety or environmental impacts. The ATCM would
have an annual cost of 8.2 million dollars; the equivalent
average cost per gallon of gasoline controlled by this measure is
0.8 cent. The average cost per cancer reduced would be 9.8 to 76
million dollars which is within the cost range of the vehicular
and fuel-related potential benzene control measures identified in
the Plan (2.2 to 110 million dollars per cancer reduced).