State of California AIR RESOURCES BOARD Resolution 07-41 September 27,2007 Agenda Item No.: 07-9-4

WHEREAS, the Legislature in Health and Safety Code section 39602 has designated the StateAir Resources Board (ARB or Board) as the air pollution control agency for all purposes set forth in federal law; WHEREAS, the ARB is responsiblefor the preparation of the State Implementation Plan (SIP) for attaining and maintainingthe national ambient air quality standards (NAAQS) as required by the federal Clean Air Act (the Act; 42 U.S.C. section 7401 et seq.), and to this end is directed by Health and Safety Code section 39602 to coordinate the activities of all local and regional air pollution control and air quality management districts (districts) necessaryto comply with the Act; WHEREAS, section 39602 of the Healthand Safety Code also provides thatthe SIP shall include only 'those provisions necessaryto meet the requirements of the Act; WHEREAS, the ARB has responsibilityfor ensuring that the districts meet their responsibilitiesunder the Act pursuantto sections 39002, 39500, 39602, and 41650 of the Health and Safety Code; WHEREAS, the ARB is authorized by section 39600 of the Health and Safety Code to do such acts as may be necessary for the proper execution of its powers and duties; WHEREAS, sections 39515 and 39516 of the Health and Safety Code provide that any duty may be delegated to the Board's Executive Officer as the Board deems appropriate; WHEREAS, the local air districts have primary responsibilityfor controlling air pollution from nonvehicular sources and for adopting control measures, rules, and regulations to attain the NAAQSwithin their boundaries pursuantto sections 39002, 40000,40001,40701,40702, and 41650 of the Health and Safety Code; WHEREAS, the South Coast Air Basin includes Orange County and portions of the counties of Los Angeles, San Bernardino, and Riverside, as described in title 17, California Code of Regulations, section 60104; WHEREAS, the South CoastAir Quality Management District (District) is the local air district with jurisdiction over the South Coast Air Basin and the Riverside County portion of the Salton Sea Air Basin (Coachella Valley), pursuant to sections 4041 0 and 4041 3 of the Healthand Safety Code;Resolution 0741

WHEREAS, the Southern California Association of Governments (SCAG) is the regional transportation agency for the South CoastAir Basin and Coachella Valley and has responsibilityfor preparing and implementing transportation control measuresto reduce vehicle trips, vehicle use, vehicle miles traveled, vehicle idling and traffic congestion for the purpose of reducing motor vehicle emissions pursuant to sections40460(b) and 40465 of the Health and Safety Code; WHEREAS, section 40463(b) of the Health and Safety Code specifies that the District board must establish a carrying capacity 

### -the maximum level of emissions which would enable the attainment and maintenance of an arr~bient air quality standard for a pollutant

### -for the South CoastAir Basinwith the active participation of SCAG; WHEREAS, in July 1997, the U.S. EnvironmentalProtectionAgency (U.S. EPA) promulgated an 8-hour NAAQS for ozone of 0.08 parts per million; WHEREAS, in December 1997, the U.S. EPA promulgated 24-hour and annual NAAQSfor fine particulate matter (PM2.5) of 65 and 15 yglm3, respectively; WHEREAS, in April 2004, U.S. EPA finalized "Phase 1" of the 8-hour ozone NAAQS implementation rule (Phase 1 ImplementationRule),which established the classification scheme for nonattainment areas and identified continuing obligations with respect to the existing I-hour ozone requirements; WHEREAS, the Phase 1 Implementation Rule designated the South Coast Air Basin and the Coachella Valley as nonattainment for the &hour ozone NAAQS, classified SOUTH COASTAIR BASIN as a "severe-? 

### 7" nonattainment area with an initial attainment date of June 15, 2021,and classifiedthe Coachella Valley as a "serious" nonattainment area with an initial attainment date of June 15, 2013, with both designations subject to the requirements of Subpart 2 of Part D of Title 

### I of the Act; WHEREAS, section 181(b)(3) of the Act requires U.S. EPA to reclassify a nonattainmentarea to a higher classification upon receipt of a request from the state havingjurisdiction; WHEREAS, section 182(e)(5) of the Act providesthat SIPSfor extreme ozone nonattainmentareas may rely in part uponthe development of new technologies or the improvement of existing technologies; WHEREAS, upon approval by U.S. EPA, a request by the State to reclassify South Coast Air Basin to an "extreme" nonattainmentarea would reset the South CoastAir Basin's attainment deadline to June 15, 2024 and allow for the use of emission reductions to be achieved from as-yet unidentifiedtechnologies inthe attainment demonstration,and a requestto reclassifythe Coachella Valley to a "severe-I5" would reset the attainment deadline for this area to June 15, 2019;

### Resolution 07-41

WHEREAS, in Noverr~ber 2005, U.S. EPA supplemented its 8-hour ozone Phase 1 Implementation Rule with a "Phase 2" rulethat specifies the emission controls and planning elements that nonattainment areas must address intheir SIPS; WHEREAS, the Act requires that 8-hour ozone nonattainment areas classified moderate, or greater, demonstrate that Reasonable Further Progress (RFP) toward attainment of the 8-hour ozone NAAQSwill occur, and that the SIPSfor such areas include air quality and emissions data, a control strategy, a modeled attainment demonstration, rate of progress milestones, conformity emission budgets, and contingency measures; WHEREAS, in December 2004, U.S. EPA designatedthe South Coast Air Basin as nonattainment of the PM2.5 NAAQS onthe basis of violation of the annual average PM2.5 NAAQS; WHEREAS, in March2007, U.S. EPAfinalized the PM2.5 implementation rule which established the framework and requirementsthat states must meet in developing annual average PM2.5 SIPS,set an initial attainment date of April 5, 2010, and allowed for an attainment date extension for up to five years; WHEREAS, the Act requires that annual PM2.5SIPSinclude air quality and emissions data, a control strategy, a modeled attainment demonstration, rate of progress n-~ilestones, conformity emission budgets, and contingency measures; WHEREAS, on March 3, 2005, the District adopted a Carbon Monoxide Maintenance Planthat U.S. EPA approved on May 11, 2007; WHEREAS, on November 15, 1996,the District adopted a Nitrogen Dioxide Maintenance Plan, that U.S. EPA approved on April 10, 2000; WHEREAS, the District adopted the 2007 Air Quality Management Plan (2007 AQMP) to fulfill the planning requirementsof both the federal Act and the California Clean Air Act; WHEREAS, the 2007 AQMP includes updated air quality and emissions data; a control strategy based on State, local, and federal measures; modeled attainment demonstrations; RFP demonstrations;.transportation

### conformity emission budgets; and contingency measures for the 8-hour ozone and annual PM2.5 NAAQS; WHEREAS, the 2007 AQMP includes harmonizing revisionsto the Carbon Monoxide Maintenance Plan and the Nitrogen Dioxide Maintenance Plan; WHEREAS, using air quality modeling, the District identified 8-hour ozone NAAQS carrying capacities of 114tons per day (tpd) of nitrogen oxides (NOx) and 420 tpd reactive organic gases (ROG);

### Resolution 07-41 -4-

WHEREAS, meetingthe carrying capacity by 2020, in order to attain the %-hour ozone NAAQS by the June 15,2021, attainment date for severe-I

### 7 nonattainment areas, would require reductions of approximately 78 percent and 22 percent of NOx and ROG, respectively,from projected controlled 2020 levels; WHEREAS, the Districtwas unable to identify control measureswith emission reductions sufficientfor the South Coast Air Basinto attain the %-hour ozone NAAQS by June 15,2021; WHEREAS, Section 181 (b)(3) of.theAct allows States to request reclassificationto a higher classificationfor ozone nonattainment areas; WHEREAS, using air quality modeling,the District identified annual average PM2.5 NAAQS carrying capacities of 452 tpd NOx, 472 tpd ROG, 20 tpd sulfur oxides (SOX),and 87 tpd directly emitted PM2.5; WHEREAS, meeting the carrying capacity by 2009, in order to attain the PM2.5 NAAQS by the April 5, 2010 deadline, would require reductionsof approximately 75 percent of NOx, 26 percent of ROG, 59 percent of SOX,and 11 percent of directly emitted PM2.5, from projected 2009 levels; WHEREAS, the Districtwas unableto identify control measureswith emission reductions sufficient for the South Coast Air Basinto attain the PM2.5 annual average NAAQS by April 5, 2010; WHEREAS, Section 188(E) of the Act allows States to request a single,five-year extension of the attainment date for particulate matter NAAAQS; WHEREAS, ARB staff performed supplemental analyses of PM2.5 air quality monitoring data and trends, PM2.5 speciation data, and emission inventory trends, as allowed by U.S. EPA modeling guidance; WHEREAS, the District'sozone and PM2.5 attainment demonstrations rely on adopted regulations, local SIP elements of the District's 2007AQMP, and the proposed State Strategy as modified in Attachment B to Resolution07-28; WHEREAS, the proposed South Coast SIP contains all of the elements required of a PM2.5 attainment plan; WHEREAS, federal law set forth in section 11 O(1) of the Act and Title 40, Code of Federal Regulations (CFR), section 51 .I 02, req~~ires that one or more public hearings, preceded by at least 30 days notice and opportunityfor public review, must be conducted prior to the adoption and submittal to the U.S. EPA of any SIP revision;Resolution 07-41 -5-

WHEREAS, as required by federal law, the District made the 2007 AQMP available for public review at least 30 days prior to the hearing; WHEREAS, following a public hearing on June 1, 2007, the Governing Board of the Districtvoted to:

. adopt the local SIP elements of the District's 2007 AQMP to fulfill the

. requirementsof the Act for extreme 8-hour ozone and annual PM2.5 nonattainment areas; 2. request a redesignationfor the SOUTH COASTAIR BASIN to 8-hour ozone extreme nonattainment; 3. request a redesignationfor the Coachella Valley to 8-hour ozone severe-I 5 nonattainment; and 4. request a 5-year extension of the annual PM2.5attainment date to April 5, 2015; WHEREAS, the local SIP elements of the District's2007 AQMP has been submitted to ARB as a SIP revision, alongwith proof of public notice publication and environmental documents in accordance with State and federal law; WHEREAS, the updated RFP demonstration shows that the South Coast Air Basin and the Coachella Valley will meet the required progress milestones and will continueto have additional emission reductions neededto meet the contingency measure requirementsfor progress; WHEREAS,the transportation conformity emission budgets included in the adopted 2007 AQMP must be updatedto reflect the final control strategy, made available for public review, approved by an appropriate body, and submitted to 

### U.S. EPA as a SIP revision; WHEREAS, updatingthe transportation conformity emission budgets will not result in a need to updatethe RFP or attainment demonstrations; WHEREAS, the District determined that the draft State Strategies plan published on April 26, 2007, in combination with the local control measures inthe AQMP, would not meet District emission reductionfor attainment of the annual PM2.5NAAQS by 2014; WHEREAS, Chapter 4 and Appendix IV-B of the 2007 AQMP, "Policy Options to Supplement CARB's Control Strategy," identifies additional mobile source control measures recommended by the Districtfor adoption by ARB to provide the remaining emission reductions neededto meet the PM2.5 carrying capacity identified in theAQMP;Resolution 07-41 -6-

WHEREAS, after considering the proposed State Strategies plan as publishedon April 26, 2007 at its June 22, 2007 meeting, the Board encouraged staff to continue working the Districtand SCAG to identify a mutually agreeable set of control measures designed to close the attainment gap; WHEREAS, ARB, District,and SCAG staff have developed a set of supplemental actionsto provide the additional NOx reductions neededto meet the District's PM2.5 emission reduction targets; WHEREAS, Districtstaff has modeledthe resulting control strategy and determined that it provides for attainmentof the PM2:5 annual average NAAQSthroughout the SOUTH COAST AIR BAS1N in 2014; WHEREAS, the State Strategy commits ARB to achieve total basin-wide err~ission reductionsfrom sources mobilesources, allows ARB to achieve those reductions from measures other than the potential measures identified in the State Strategy, and allows ARB to substitute reductions of one pollutant for another using relative PM2.5 reduction values identified by the District; WHEREAS, the 2007 AQMP's proposed control measure MOB-03, "Proposed Backstop Measuresfor IndirectSources of Emissionsfrom Ports and Port-Related Facilities," is a District commitmentto adopt a backstop rule for criteria pollutant reductionsfrom port-related sources, and would provide additional assurance that needed emission reductions will be achieved; WHEREAS, the targets referenced in proposed control measure MOB-03 are not enforceable SIP commitments and will be further evaluated duringthe District's rulemaking process to adopt the proposed control measure; WHEREAS, relative to the ozone attainment strategy for the South Coast Air Basin, the Boardfinds that: 

### 1. It is necessaryto reduce NOx emissions by almost 90 percent and ROG emissions by over 40 percent,from 2006 levels, in order to attain the 8-hour ozone NAAQS;
2. The existing err~ission control program, together with the District measures identified in the AQMP and the estimated benefits of the proposed State Strategy, will achieve approximately 70 percent of the NOx emission reductions, and 85 percent of the ROG emission reductions, neededfrom 2006 emission levels to attain the 8-hour ozone'NAAQS by 2023; 3. A reclassificationto "extreme" is appropriatefor the South Coast Air Basin to allow needed additionaltime to attain the 8-hour ozone standard, and to allow the attainment demonstrationto include anticipated emissionResolution 07-41 -7-

reductions from advancements in emission control technologies that cannot be identified at this time;
4. ARB, District, and SCAG staff have agreed towork together to develop a discussion paper within four months from the date of adoption of the 2007 SIP that explores potential strategies for identifyingthe additional reductions neededto meet the 8-~OLI~ ozone standard and future ambient air quality standards, including a consideration of new or transformative strategies such as state-of-technology zero and near-zero transportation systems, other mechanisms such as fee-based incentives, and the role and availability of public funding;
5. The local SIP elements of the AQMP identified contingency measures that will achieve additional emission reductions, beyondthose relied on in the attainment demonstration, in the eventthat the South Coast Air Basin does not attain the 8-hour ozone NAAQS by 2024; and


### 6. The local SIP elements of the AQMP combined with ARB's proposed State Strategy meet all applicable ozone planning requirements established by the Act and U.S. EPA regulations; WHEREAS, relativeto the PM2.5 attainment strategyfor the South Coast Air Basin,

, the Boardfinds that:
I. 'The level of reductions neededto attain the PM2.5 annual average NAAQS in the SOUTH COASTAIR BASIN warrants the five-year extension of the attainment date, to April 5, 2015, allowed by the CAA.
2. The local control measures identified in the adopted 2007 AQMP, together with the State Strategy as amended by the ARB, District, and SCAG agreement, will providethe emission reductions neededto reduce emissions to the carrying capacity identified by the Districtfor meetingthe PM2.5 annual average NAAQS; 

### 3. The AQMP identified contingency measures that will achieve additional emission reductions, beyond those relied on inthe attainment demonstration, inthe event that the South Coast Air Basindoes not attain the annual average PM2.5 NAAQS by 2014;
4. The local SIP elements of the AQMP combined with ARB's proposed State Strategy meet all applicable PM2.5 planning requirementsestablished by the Act and U.S. EPA regulations;Resolution 07-41 -8-

NOW, THEREFORE, BE IT RESOLVED, the Board hereby approves the 2007 AQMP, excluding those portions of Chapter4 addressing 

### District-recon- mended measuresfor adoption by ARB and referencesto those measures, those portions of Chapter 

### 6 addressing California Clean Air Act requirements, and emission and risk reductiongoals identified in the AQMP's proposed control measure MOB-03, "Proposed Backstop Measuresfor IndirectSources of Emissions from Ports and Port-Related Facilities," as revisionsto the ~alifornia SIP; BE IT FURTHER-RESOLVED, that the Board directs the ExecutiveOfficer to work with the District to determine appropriate emission levels for port-relatedsources during the District's development of control measure MOB-03; BE IT FURTHER RESOLVED, that the Board hereby adoptsthe technical and control strategy elements for carbon monoxide and nitrogen oxide in the 2007 AQMP as revisionsto the South Coast Air Basin's Carbon Monoxide Maintenance Plan and Nitrogen Dioxide Maintenance Plan portions of the California SIP;
BE IT FURTHER RESOLVED, that the Board hereby directsthe Executive Officerto forward the AQMP as approved to the U.S. EPA for inclusion in the SIP to be effective, for purposes of federal law, upon approval by U.S. EPA; BE IT FURTHER RESOLVED, that the Board directs the Executive Officerto submit to U.S. EPA the District's requests for reclassificationof the South Coast Air Basinto extreme nonattainment and CoachellaValley to severe-15 nonattainment for the 8-hour ozone NAAQS, and for an extension of the PM2.5attainment deadline for the South Coast Air Basin to April 5, 201 5; BE IT FURTHER RESOLVED, that the Board directs the Executive Officer to work with the District and U.S. EPA and take appropriate action to resolve any completeness or approvability issuesthat may arise regarding the SIP submission; BE IT FURTHER RESOLVEDthat the Board authorizes the ExecutiveOfficer to include inthe SIP submittal any technical corrections, clarifications, or additions that may be necessaryto secure U.S. EPA approval; and BE IT FURTHER RESOLVED that the Board hereby certifies pursuantto 40 CFR section 51.I 02 that the District's 2007AQMP was adopted after notice and public hearing as required by 40 CFR section 51.102. I hereby certify that the above is a true and correct copy of Resolution07-41, as adopted by the Air Resources Board.