MEETING STATE OF CALIFORNIA AIR RESOURCES BOARD

SOUTH COAST AIR QUALITY AIR MANAGEMENT DISTRICT AUDITORIUM 21865 E. COPLEY DRIVE DIAMOND BAR, CALIFORNIA

THURSDAY, DECEMBER 6, 2012

9:07 A.M.

TIFFANY C. KRAFT, CSR CERTIFIED SHORTHAND REPORTER LICENSE NUMBER 12277 CALIFORNIA REPORTING, LLC 52 LONGWOOD DRIVE SAN RAFAEL, CA 94901 (415) 457-4417APPEARANCES

BOARD MEMBERS Ms. Mary Nichols, Chairperson Dr. John Balmes Ms. Sandra Berg Ms. Dorene D'Adamo Mr. Hector De La Torre Mr. Ronald Loveridge Mrs. Barbara Riordan Dr. Alex Sherriffs

STAFF Mr. James Goldstene, Executive Officer Mr. Tom Cackette, Chief Deputy Executive Officer Mr. Richard Corey, Deputy Executive Officer Ms. Lynn Terry, Deputy Executive Officer Ms. Sarah Pittiglio, Ph.D., Air Pollution Specialist, Research Division Ms. Annalisa Schilla, Climate Action and Research Planning, Research Division Ms. Marcelle Surovik, Air Pollution Specialist, Energy Section, Stationary Source DivisionAPPEARANCES CONTINUED

ALSO PRESENT Mr. Brian Biering, Wildflower Energy Mr. Bill Davis, SCCA/CCTA/CIAQC Mr. Sean Edgar, Clean Fleets Net Mr. Paul Shepard, Wildflower Energy, LPINDEX PAGE

Item 12-9-1 Chairperson Nichols 6 Item 12-9-2 Chairperson Nichols 8 Item 12-9-3 Chairperson Nichols 8 Executive Officer Goldstene 8 Staff Presentation 9 Item 12-9-4 Chairperson Nichols 28 Executive Officer Goldstene 28 Staff Presentation 28 Motion 44 Vote 44 Item 12-9-5 Chairperson Nichols 44 Executive Officer Goldstene 46 Staff Presentation 47 Mr. Shepard 58 Mr. Biering 60 Item 12-9-6 Chairperson Nichols 73

Public Comment Mr. Davis 89 Mr. Edgar 93

Adjournment 96 Reporter's Certificate 97PROCEEDINGS CHAIRPERSON NICHOLS: Good morning, everybody. This is the December 6th, 2012 public meeting of the Air Resources Board. I would ask you please to come to order.

We will begin our meeting, as usual, with the Pledge of Allegiance to the flag.

(Thereupon the Pledge of Allegiance was Recited in unison.) CHAIRPERSON NICHOLS: The Clerk will please call the roll. BOARD CLERK JENSEN: Dr. Balmes?

BOARD MEMBER BALMES: Here. BOARD CLERK JENSEN: Ms. Berg? BOARD MEMBER BERG: Here BOARD CLERK JENSEN: Ms. D'Adamo? BOARD MEMBER D'ADAMO: Here. BOARD CLERK JENSEN: Mr. De La Torre? BOARD MEMBER DE LA TORRE: Here. BOARD CLERK JENSEN: Mayor Loveridge? BOARD MEMBER LOVERIDGE: Here. BOARD CLERK JENSEN: Mrs. Riordan? BOARD MEMBER RIORDAN: Here. BOARD CLERK JENSEN: Supervisor Roberts? Dr. Sherriffs? BOARD MEMBER SHERRIFFS: Here.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25BOARD CLERK JENSEN: Professor Sperling? Supervisor Yeager? Chairman Nichols? CHAIRPERSON NICHOLS: Here. BOARD CLERK JENSEN: Madam Chairman, we have a quorum. CHAIRPERSON NICHOLS: Great. Thank you.

I want to say, I really like this room. And I'm wondering if the powers of eminent domain extend from the State to the regional level and we couldn't just sort of adopt this place. I like being lower down than when we are in the Haagen-Smit room way up on our dais there. And the sound system is very good here, too. So are the pictures. So I think we should consider that.

We are very grateful to the Air Quality Management District for allowing the use of their room this morning.

I have a couple of announcements for anybody who is not familiar with our routine. Anyone who wishes to testify and has not signed up online should fill out a request to speak card. They're available in the lobby outside the boardroom. And we appreciate it if you would turn it into the clerk, who is back in the corner over there in advance.

If you've already taken advantage of the online

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25sign-up procedure, you do not need to fill out a request

to speak card. But you must check in with the Clerk or your name will be removed from the Speaker's list.

Also, speakers should be aware that the Board imposes a three-minute time limit. We appreciate it if you state your first and last name when you come up to the podium and then summarize your testimony, putting it into your own words as opposed to reading it. Because if you have prepared written testimony, we already have it.

For safety reasons, please note the emergency exits that are in the rear and to the side here. We're required to evacuate this room immediately and go outside the building if there is an alert.

Now, before we take up the calendar, the regular calendar, I wanted to mention a couple of things. First of all, in the wave of retirements that is going across the Air Resources Board and government in general, I should say, I want to take a moment to recognize the retirement of a long-time employee who is not with us today, and that's Dr. Linda Murchison. I believe Linda is listening on the broadcast. If you are, Linda, this is for you. Linda is retiring after more than 35 years with the Air Resources Board. Throughout that time, she has been a leader in exemplifying ARB's commitment to strong

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25technical analysis in policy development. Her dedication

as well as her noted management skills and creativity have made her a key member of ARB's executive staff team. Linda directed the development of several major new ARB programs throughout her career. Let me just mention a couple that illustrate the breadth of her contribution.

Linda joined the Air Resources Board in 1982 and quickly moved into management. Early on, she transformed ARB's emissions inventory into a modern database system for the first time. She was the first manager of ARB's toxic inventory program, developing our first regulatory reporting requirements for airborne toxics. She also built ARB's first community assessment and environmental justice programs, including a neighborhood scale air quality monitoring and modeling initiative. She was key to the drafting of our environmental justice policies and principles. And she oversaw the drafting of ARB's very much used land use handbook.

More recently, Linda has turned her talents to our climate change programs. Under her leadership, ARB staff developed California's first comprehensive greenhouse gas emissions inventory. And then a year later, her staff developed and the Board adopted the mandatory reporting rule and the verification program.

While taking on these challenges, she also

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25managed the very complex and important technical and

policy issues involved in the SIP planning.

Underlying all of these accomplishments is Linda's unwavering dedication to the scientific and technical integrity of ARB work. We will miss her. But we can also be assured that she leaves behind a legacy of excellence as well as some excellent people who she helped to train who will carry on.

So Linda, hope you're listening. On behalf of myself and the Board members and all ARB staff, we want to say thank you.

(Applause) BOARD MEMBER RIORDAN: Madam Chair? CHAIRPERSON NICHOLS: Yes. BOARD MEMBER RIORDAN: I'd like to just say to Linda and hope she is listening how much I appreciated working with her over these many years that I've served on the Board, particularly in the area of environmental justice and the famous land use handbook.

She really was wonderful at working with community groups and in some more controversial areas. And I just appreciated the calming and reasoning effect of her efforts. And I thank her. And I'm sure we're going to miss her terribly.

CHAIRPERSON NICHOLS: Thank you very much.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25All right. The first item on this morning's

calendar is a consent item. It's the public hearing to consider the approval of the San Diego 8-hour ozone SIP redesignation request and maintenance plan. And I'd like to ask the Clerk if any witnesses have signed up to testify on this item.

No, they have not. Thank you. Are there any Board members who want to address this item or would like to have it removed from the consent calendar? If not, we have a motion to approve it. BOARD MEMBER BERG: I don't want to move it, but I would like to take one moment to say how refreshing it is that we're moving something into attainment. Hate to have that go unnoticed.

CHAIRPERSON NICHOLS: I agree. I also wanted to introduce Bob Kard, if you're there. Bob is the Air Pollution Control Officer for San Diego. And since Supervisor Roberts isn't here, somebody has to make sure that we do the right thing. But you do not intend to address the Board, I believe?

MR. KARD: Unless you'd like me to say ten words. CHAIRPERSON NICHOLS: Sure. Come on forward. Might as well. This is a big day.

MR. KARD: Chairman Nichols and Board members,

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25it's Bob Kard, the Air Pollution Control Officer in San

Diego. I just wanted to say thank you, because this is a joint effort. CARB's support has been invaluable, I should say, just priceless in helping us get there. San Diego Board of Supervisors has been great. They have been supportive of what we do in even difficult economic times, as we're all aware of. And frankly, the staff at the APCD and again ARB staff, making this possible because it's great. 2012, we had no ozone exceedances whatsoever of the 1997 standard. As compared to every day in the summertime, we had an exceedance in 1990. It's tremendous progress. We've gone up from 65 million vehicle miles traveled per day in 1990 to 87 million a day now, or in 2011. This is tremendous progress. It's a credit to everyone who is involved with it. And I want to thank you for that. CHAIRPERSON NICHOLS: That's great. So we have a motion and a second. The record has been closed.

All in favor, please say aye. (Ayes) CHAIRPERSON NICHOLS: Any opposed? Passes unanimously. Thank you.

Okay. Our second item is also a consent item.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25Agenda Item 12-9-2, the public hearing to consider

approval of the 2012 particulate matter 2.5 inventory submittal to the State Implementation Plan for the San Francisco Bay Area.

I'd like to ask the Clerk again if there are any witnesses who signed up to testimony on this item. No. There are not.

Are there any Board members who want to see this removed from the consent calendar? All right. If not, and there is no one here even representing the Bay Area, I

see -- BOARD MEMBER RIORDAN: Move approval.

CHAIRPERSON NICHOLS: We have a motion to approve. BOARD MEMBER DE LA TORRE: Second.

CHAIRPERSON NICHOLS: And a second. All in favor please say aye. (Ayes) CHAIRPERSON NICHOLS: Opposed? Great. All right. Now, moving on to the next item, we have an informational update on the Board's research program. And I'll ask our Executive Officer to introduce this item.

EXECUTIVE OFFICER GOLDSTENE: Thank you, Chairman Nichols.

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