MEETING

STATE OF CALIFORNIA

AIR RESOURCES BOARD

LOS ANGELES AIRPORT MARRIOTT HOTEL

SUITES A, B, AND C

5855 WEST CENTURY BOULEVARD

LOS ANGELES, CALIFORNIA

FRIDAY, JUNE 22, 2007

9:00 A.M.

TIFFANY C. KRAFT, CSR, RPR

CERTIFIED SHORTHAND REPORTER

LICENSE NUMBER 12277

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345ii

APPEARANCES

BOARD MEMBERS

Dr. Robert Sawyer, Chairperson

Ms. Sandra Berg

Ms. Judith Case

Ms. Dorene D'Adamo

Supervisor Jerry Hill

Ms. Lydia Kennard

Mrs. Barbara Riordan

Dr. Daniel Sperling

STAFF

Mr. Tom Cackette, Chief Deputy Executive Officer

Mr. Tom Jennings, Chief Counsel

Mr. Michael Scheible, Deputy Executive Officer

Ms. Lynn Terry, Deputy Executive Officer

Ms. Kathleen Quetin, Ombudsman

Ms. Catherine Witherspoon, Executive Officer

Ms. Lori Andreoni, Board Secretary

Mr. Bob Jenne, Senior Staff Counsel

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345iii

APPEARANCES CONTINUED

ALSO PRESENT

Council Member Joe Aguilar, City of Commerce

Mr. Harry Baldwin, City of San Gabriel

Ms. Barbara Baird, SCAQMD

Ms. Marisol Barajas, Long Beach Alliance for Children with

Asthma

Dr. William Burke, Chairman, SCAQMD

Mayor Michael Cacciotti, City of South Pasadena

Mr. Todd Campbell, Clean Energy

Mr. Frank Caponi, Los Angeles County Sanitation District

Mr. Tim Carmichael, Coalition for Clean Air

Ms. Jane Carney, SCAQMD

Ms. Elaine Chang, SCAQMD

Senator Gil Cedillo

Mr. Mike Eaves, California Natural Gas Vehicle Coalition

Mr. David Ford, Representing Assembly Member Ted Lieu

Mr. Douglas Fratz, CSPA

Mr. Warren Furutani, President Board, LA Community College

District

Lt. Governor John Garamendi, Office of the Governor

Mr. Paul Goslind, Chief Deputy Director, Department of

Pesticide Regulation

Mr. Sam Hall, Representing Senator Alan Lowenthal

Mr. Kiran Hashi, Representative for Council Member Jan

Perry, SCAQMD Board

Mr. Henry Hogo, SCAQMDPETERS SHORTHAND REPORTING CORPORATION (916) 362-2345iv

APPEARANCES CONTINUED

ALSO PRESENT

Mr. Philip Huang, Communities for a Better Environment

Mary Justice

Mr. Rex Laird, Farm Bureau

Mr. Allan Lind, California Council for Environmental and

Economic Balance

Mr. Roye Love, City of Carson Environmental Commission

Mr. Joseph Lucero

Council Member Louie Lujan, City of La Puente

Mr. Phong Ly, Representative for Assembly Member Mike Eng

Mr. Bobby MacDonald, Black Chamber of Orange County

Mayor Nury Martinez, City of San Francisco

Council Member Barbara Messina

Mr. Rick McVaigh, SJV APCD

Mr. Robert Pullen Miles, Representing Jenny Oropaza

Mr. Matt Miyasato, SCAQMD

Ms. Rebecca Overmyer Velazquez, Northwhittier Neighborhood

Watch Avocado Heights Coalition

Supervisor Gary Ovitt, SCAG

Ms. Monica Parrilla, LBACA/CPA

Mr. Romel Pascual, Representing Mayor Antonio Villaraigosa

Mr. Mark Pisano, SCAG

Mayor Miguel Pulido, SC AQMD Board

Ms. Cynthia Romo, Long Beach Alliance for Children with

Asthma

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345v

APPEARANCES CONTINUED

ALSO PRESENT

Ms. Tonia Reyes Uranga, SCAQMD Long Beach

Mr. Jim Stewart, Sierra Club

Ms. Robina Suwol, CA Safe Schools

Mr. Sid Tyler, City of Pasadena

Mr. Rick Tomlinson, Strawberry Commission

Mr. Eric Walts, Department of Pesticide Regulations

Mr. Paul Wuebben, SCAQMD

Mr. Peter Yao, City of Claremont

Mr. Dennis Yates, SCAQMD

Mr. Joseph Yost, Consumer Specialty Products Association

Ms. Jennifer Zivkovic, Representing Assembly Memger Betty

Karnette

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345vi

INDEX

PAGE

Item 7-6-3

Chairperson Sawyer 3

Executive Officer Witherspoon 4

Staff Presentation 5

Q&A 58

Lt. Governor Garamendi 77

Mayor Pulido 83

Senator Cedillo 85

Mr. Hashmi 89

Dr. Burke 91

Supervisor Ovitt 92

Mr. Pisano 95

Mr. Yates 98

Councilmember Aguilar 100

Councilmember Messina 101

Mayor Cacciotti 103

Ms. Uranga 106

Ms. Justice 109

Ms. Carney 111

Mr. Ly 114

Mr. Furutani 116

Mr. Hall 119

Ms. Zivkovic 121

Mr. MacDonald 123

Mr. Love 124

Mr. Baldwin 126

Mr. Lujan 127

Mr. Miyasato 130

Mr. Miles 136

Mr. Ford 134

Mr. Pascual 134

Mayor Yao 136

Ms. Chang 138

Mr. Hogo 141

Mr. Stewart 154

Mr. Wuebben 156

Mr. McVaigh 162

Ms. Jensvold 165

Ms. Jun 167

Mr. Caponi 168

Mr. Lind 170

Mr. Eaves 173

Mr. Walts 174

Mr. Laird 176

Mayor Martinez 178

Mr. Tomlinson 180

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345vii

INDEX CONTINUED

PAGE

Ms. Overmyer-Velazquez 180

Mr. Yost 182

Mr. Fratz 185

Ms. Baird 187

Mr. Carmichael 189

Mr. Campbell 196

Ms. Suwol 199

Mr. Huang 200

Mr. Beeson 203

Mr. Lange 204

Ms. Lifson 205

Ms. Cevda 207

Rev. Lilly 209

Ms. Bates 211

Mr. Roberts 213

Mr. Leon 215

Ms. Saklar 219

Mr. Schuiling 221

Ms. Nicholas 224

Ms. Etem 226

Ms. Bolanos 228

Ms. Collahan 230

Mr. Dietrich 232

Mr. Cabrales 240

Mr. Goslind 244

Ms. Waita 247

Ms. Chandiok 250

Mr. Miltenberg 252

Ms. Martinez 258

Ms. Huddleston 261

Mr. Magavern 262

Mr. LaMarr 265

Ms. Affonso 267

Rev. Smart 269

Mr. Nabavi 271

Ms. Barnett 273

Mr. Sybert 275

Mr. Keener 279

Ms. Bautista 281

Ms. Fong 284

Mr. Wallerstein 287

Q&A 290

MOtion 306

Vote 306

Adjournment 308

Reporter's Certificate 309

PETERS SHORTHAND REPORTING CORPORATION (916) 362-23451

1 PROCEEDINGS

2 CHAIRPERSON SAWYER: Good morning. The June

3 22nd, 2007, Public Meeting of the Air Resources Board will

4 come to order.

5 Please join in the Pledge of Allegiance.

6 (Thereupon the Pledge of Allegiance was

7 recited in unison.)

8 CHAIRPERSON SAWYER: Thank you very much.

9 Will the Clerk of the Board please call the roll.

10 SECRETARY ANDREONI: Ms. Berg?

11 Supervisor Case?

12 BOARD MEMBER Case: Here.

13 SECRETARY ANDREONI: Ms. D'Adamo?

14 BOARD MEMBER D'ADAMO: Here.

15 SECRETARY ANDREONI: Dr. Gong?

16 Supervisor Hill?

17 SUPERVISOR HILL: Here.

18 SECRETARY ANDREONI: Ms. Kennard?

19 BOARD MEMBER KENNARD: Here.

20 SECRETARY ANDREONI: Mrs. Riordan?

21 BOARD MEMBER RIORDAN: Here.

22 SECRETARY ANDREONI: Professor Sperling?

23 BOARD MEMBER SPERLING: Here.

24 SECRETARY ANDREONI: Chairman Sawyer?

25 CHAIRPERSON SAWYER: Here.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-23452

1 SECRETARY ANDREONI: Mr. Chairman, we have a

2 quorum.

3 CHAIRPERSON SAWYER: Thank you very much.

4 Anyone who wishes to testify should sign up with

5 Board staff at the tables outside the boardroom, and has

6 the option to include his or her name on the speaker card.

7 Please see Board staff for further instructions.

8 Translation services are available in Spanish for

9 those who need it. The headsets are available in the back

10 of the hearing room on your right. And if the translator

11 could repeat that announcement. Thank you.

12 THE TRANSLATOR: Yes. Good morning.

13 (Thereupon the announcement was translated into

14 Spanish.)

15 CHAIRPERSON SAWYER: And we will be repeating the

16 translation announcement a little bit later after more

17 people have arrived.

18 Also, speakers, please be aware that the Board

19 will impose a three-minute time limit. Please put your

20 testimony into your own words. It's easier for the Board

21 to follow if you go straight to your main points. You do

22 not need to read your written testimony since it will be

23 entered into the record.

24 I must comment that the speakers were wonderful

25 yesterday. And the instructions are, when the red light

PETERS SHORTHAND REPORTING CORPORATION (916) 362-23453

1 comes on, that's a signal to say, "In conclusion..." And

2 people really went along with that, and I was delighted.

3 For safety reasons, please note the emergency

4 exists to the left of the hearing room and to the rear.

5 In the event of a fire alarm, we must evacuate this room

6 immediately. When the "all clear" signal is given, we

7 will return to the hearing room and resume the hearing.

8 Today we have a single agenda item, 7-7-7,

9 consideration of the Proposed State Strategy for

10 California State Implementation Plan.

11 The 2007 Implementation Plan, or SIP, is the

12 first plan designed to show how California will meet the

13 new federal eight-hour ozone standard, which is about 30

14 percent more stringent than the one-hour standard it

15 replaces.

16 The proposed State Strategy also provides

17 emission reductions needed for PM2.5 attainment by 2014 in

18 the South Coast and which are expected to be necessary for

19 the San Joaquin Valley as well. The challenge of meeting

20 federal clean air standards in the South Coast will

21 require all of us working together to facilitate the

22 process.

23 I and other Board members have met with members

24 of the South Coast Air District and Southern California

25 Association of Governments to find workable solutions and

PETERS SHORTHAND REPORTING CORPORATION (916) 362-23454

1 have agreed to put more actions on the table. Based on

2 the cooperative spirit that we have witnessed so far, I am

3 optimistic that we can arrive at a plan that will deliver

4 clean air to the South Coast Air Basin.

5 Ms. Witherspoon, please introduce this item.

6 EXECUTIVE OFFICER WITHERSPOON: Thank you, Dr.

7 Sawyer. And good morning, members of the Board.

8 The proposed State Strategy that staff is

9 presenting today is far reaching in its breadth of

10 measures and quantity of emission reductions. Staff is

11 confident that we've identified all the controls necessary

12 for attainment of the fine particle standard in 2014 and

13 most of the reductions needed for the more ambitious ozone

14 attainment with some left over in the innovative

15 technology category.

16 The proposed strategy does not just rely on new

17 engine standards. We go where the emissions are right

18 now, which is the existing legacy fleet of older diesel

19 vehicles and equipment. Those are the main target of the

20 proposed State Strategy's measures.

21 The strategy tackles all the major sources of

22 pollution including rules we are already working on like

23 the construction rule you heard last month and will

24 consider again in July for final action and the on-road

25 truck rule which staff has already begun conducting

PETERS SHORTHAND REPORTING CORPORATION (916) 362-23455

1 workshops on.

2 Last week, the Board considered an

3 ozone-attainment plan in the San Joaquin Valley and

4 responded by promising to work with the Valley Air

5 District and all stakeholders to reach cleaner goals

6 sooner than the extended target. The State Strategy

7 you're hearing today complements the local district

8 measures and enables us to submit the ozone plan to U.S.

9 EPA for their review and approval.

10 Today we initially planned to hear the South

11 Coast Air District and SCAG's plan for ozone and fine

12 particles. But due to not-yet-finished local action

13 regarding the plan, we've rescheduled its consideration to

14 the first available meeting slot in September or October.

15 Nevertheless, the needs of the South Coast Air Basin will

16 be center stage as the Board considers the State Strategy

17 here in Los Angeles.

18 With that introduction, I'll ask Kurt Karperos,

19 Chief of the Air Quality and Transportation Planning

20 Branch, to present the proposed State Strategy.

21 (Thereupon an overhead presentation was

22 presented as follows.)

23 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

24 CHIEF KARPEROS: Thank you, Ms. Witherspoon. Good

25 morning, Dr. Sawyer And members of the Board.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-23456

1 It is my pleasure today to present for your

2 consideration the proposed State Strategy for the 2007

3 California State Implementation Plan. The proposed State

4 Strategy is the key emission reduction ingredient needed

5 for California to meet federal air quality standards.

6 Let me first introduce the technical staff at the

7 table today.

8 Immediately to my right is Robbie Romeligam. He

9 oversees SIP development in northern California.

10 Next to him is Sylvia Oey. She oversees SIP

11 development for southern California.

12 To my left is John Taylor. He managers the

13 identification, analysis, and quantification of the

14 emission reductions measures that are in the proposal

15 before you today.

16 Past him is Linda Murchison, Chief of the

17 Planning and Technical Support Division.

18 Next to her is Karen Magliano. She is Chief of

19 the Air Quality Data Branch, data central -- information

20 central to what we'll be talking about today.

21 And then just next to her is John DeMassa, Chief

22 of the Modeling Meteorology Branch and Planning Technical

23 Support Division.

24 --o0o--

25 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

PETERS SHORTHAND REPORTING CORPORATION (916) 362-23457

1 CHIEF KARPEROS: So with that -- ah, yes, the most

2 important person just arrived. Jeff Weir, at the end of

3 the table, has been the lead staff person on the

4 development of the SIP.

5 --o0o--

6 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

7 CHIEF KARPEROS: The California State Implementation Plan,

8 or SIP, defines what needs to be done to bring California

9 into compliance with federal air quality standards.

10 The State Strategy for the SIP consists of

11 measures that reduce emissions from sources under state

12 and federal control. Local measures are combined with the

13 State Strategy before California's SIP is submitted to

14 U.S. EPA for approval. ARB's State Strategy includes both

15 adopted control measures and proposed new measures

16 necessary to meet the federal standards.

17 The proposed State Strategy provides 90 percent

18 of the total reductions in the 2007 SIP, primarily from

19 mobile sources.

20 ARB's mobile source measures are key to reducing

21 both ozone and PM2.5 pollution levels. We'll show you

22 later in the presentation just how important the proposed

23 new ARB actions are.

24 --o0o--

25 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

PETERS SHORTHAND REPORTING CORPORATION (916) 362-23458

1 CHIEF KARPEROS: The proposed State Strategy is

2 comprehensive, innovative, and aggressive.

3 Comprehensive because it proposes to reduce

4 emissions from all major mobile sources of pollution, and

5 it focuses on the key contributor to PM2.5 and ozone

6 pollution, nitrogen oxides, or NOx.

7 Innovative because it proposes groundbreaking

8 measures that require cleanup of existing fleets of

9 vehicles and equipment as new technologies become

10 available. We cannot simply wait for California's diesel

11 engines to be retired at the current rate. The strategy

12 also anticipates innovation and evolving technologies.

13 It is aggressive because it moves swiftly to cut

14 emissions. Most of the proposed measures are already in

15 progress, and it would reduce NOx emissions at an

16 unparalleled rate.

17 --o0o--

18 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

19 CHIEF KARPEROS: The large chart prominently displayed

20 today next to the speaker's podium shows that the proposed

21 State Strategy is a continuance of ARB's history of

22 setting increasingly more stringent standards over time.

23 It shows key elements of our long, steady and unequaled

24 progress in reducing air pollutant emissions.

25 There is a reason for these two downward racing

PETERS SHORTHAND REPORTING CORPORATION (916) 362-23459

1 lines.

2 --o0o--

3 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

4 CHIEF KARPEROS: The reason is ARB actions - year after

5 year after year.

6 Each of the bands across the chart show important

7 ARB pollution reduction initiatives. Within each band are

8 specific ARB actions. The diamonds next to each action

9 show the approximate date new ARB requirements have taken

10 effect.

11 First, across the top, our over 40-year history

12 of ensuring that California's cars are the cleanest in the

13 world.

14 Below that, gasoline vapor recovery efforts to

15 drastically cut ROG emissions.

16 Next, a smog check program that help keep the

17 cleanest cars in the world cleaner longer. The Bureau of

18 Automotive Repair gets credit for implementation. ARB is

19 central to ensuring a strong smog check program.

20 Below that, diesel truck standards that have been

21 steadily racheted down to the point that in 2010, new

22 trucks will be 98 percent cleaner than when we started.

23 Next, standards that have drastically reduced

24 emissions from gasoline and diesel fuel and enabled new

25 generations of cleaner vehicle technologies.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234510

1 Then off-road engines: Construction equipment,

2 cleaner; lawn mowers, cleaner; forklifts, cleaner;

3 recreational boats, cleaner; all-terrain vehicles,

4 cleaner.

5 Finally, the pink band. We've embarked on our

6 biggest challenge yet, the cleanup of the existing fleet.

7 You can see the fleet rules the Board has already adopted

8 and the major new rules proposed as part of the State

9 Strategy.

10 The new measures proposed in the State Strategy

11 are highlighted in red. They are why the NOx line

12 continues to move steadily downward. You will hear me say

13 several times this morning that the State Strategy will

14 double the future NOx emission reduction rate. You can

15 see that here on the large chart where the NOx line turns

16 sharply downward in 2010.

17 We didn't put everything we've done on the chart.

18 But the combination of all the adopted measures and the

19 proposed measures in the State Strategy equate to a

20 reduction of 7,000 tons per day of mobile source emissions

21 statewide from 1980.

22 --o0o--

23 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

24 CHIEF KARPEROS: And the results of ARB actions?

25 Improving air quality.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234511

1 --o0o--

2 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

3 CHIEF KARPEROS: Here we'll start with smog levels in the

4 South Coast Air Basin in 1985:

5 Light green is good - areas that meet the

6 standards. Not much there.

7 Tan is close.

8 Light brown is getting worse.

9 Orange is close to double the standard.

10 Dark brown is more than double the standard

11 --o0o--

12 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

13 CHIEF KARPEROS: The South Coast Air Basin, ten years

14 later, 1995.

15 --o0o--

16 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

17 CHIEF KARPEROS: 2005. The worst levels are gone. Large

18 portions of the coastal areas meet the standard. Inland

19 area emission levels down 50 percent in the last

20 ten years. Numbers of days over the standard down 70

21 percent. Population exposure down 75 percent.

22 --o0o--

23 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

24 CHIEF KARPEROS: Here's a look at the San Joaquin Valley.

25 This slide starts with 1990. No dark brown, but there's

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234512

1 too much light brown and some orange.

2 --o0o--

3 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

4 CHIEF KARPEROS: Here's 1995. Getting better.

5 --o0o--

6 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

7 CHIEF KARPEROS: And here's 2005. The number of days

8 above the standard down 60 percent and population exposure

9 down by 50 percent since 1990.

10 Certainly more needs to be done in these two

11 areas and throughout the state, and quickly. It all needs

12 to be green.

13 --o0o--

14 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

15 CHIEF KARPEROS: This is a synopsis of the ozone progress

16 numbers I just mentioned. Since I've already gone over

17 them, let's move on to PM2.5 progress.

18 --o0o--

19 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

20 CHIEF KARPEROS: We haven't been measuring PM2.5 levels

21 for very long. But the monitoring we've done this decade

22 shows a steady decline in annual average levels. The

23 improvement shows a strong correlation with NOx emission

24 reductions.

25 And the South Coast and San Joaquin Valley

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234513

1 already meet the 24-hour PM2.5 standard.

2 --o0o--

3 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

4 CHIEF KARPEROS: Here's how the South Coast is progressing

5 towards meeting the annual average PM2.5 standard. The

6 dotted red line is the standard at 15 micrograms per cubic

7 meter.

8 In 2001, the annual average was 30.1, double the

9 standard. Over the last five years, PM2.5 levels have

10 dropped steadily, almost two-thirds of the way to the

11 standard. And population exposure is down by two-thirds.

12 Much lower NOx emissions get credit for much of

13 the progress.

14 --o0o--

15 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

16 CHIEF KARPEROS: We've seen the same kind of progress in

17 the San Joaquin Valley. In 2001, more than 50 percent

18 over the standard; in 2006, that's been cut in half;

19 levels today are now less than 25 percent above the

20 standard.

21 --o0o--

22 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

23 CHIEF KARPEROS: Now I'll talk about SIP requirements.

24 --o0o--

25 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234514

1 CHIEF KARPEROS: The eight-hour federal ozone standard is

2 0.08 parts per million. It is significantly more health

3 protective than U.S. EPA's previous one-hour standard. To

4 set attainment deadlines for the new standard, U.S. EPA

5 used the classification scheme in the Federal Clean Air

6 Act designed by Congress for the one-hour standard. The

7 results are nominal attainment deadlines, running from

8 2007 for areas just over the standard to 2024 for the most

9 polluted areas.

10 A confusing idiosyncrasy of U.S. EPA's

11 classification scheme is that states must meet the

12 standard one year before the attainment deadline. So for

13 all practical purposes the working attainment deadline is

14 the year before the legal deadline. So an area classified

15 as extreme with a 2024 legal deadline must meet the

16 standard by 2023. The general convention is to use the

17 one-year-before working deadline when talking about

18 attainment dates. And that's what I'll do today.

19 With the exception of the Bay Area, most

20 California urban areas exceed the federal ozone standard

21 to varying degrees. Rural areas downwind of our urban

22 center do also. Some areas that currently violate the

23 standard are expected to come into compliance shortly on

24 the strength of existing controls. Others, notably the

25 South Coast and the San Joaquin Valley, will need more

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234515

1 time.

2 --o0o--

3 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

4 CHIEF KARPEROS: This slide shows what the SIP needs to do

5 for ozone attainment in the South Coast based on the

6 district's selection of NOx and ROG targets. Even with

7 the progress that's been made, the emission reduction

8 needs starting from today's levels are large: An almost

9 90 percent NOx reduction and over 40 percent ROG reduction

10 by 2023. These new targets reflect the increased

11 stringency of the new federal standards.

12 --o0o--

13 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

14 CHIEF KARPEROS: Here's the same information for the San

15 Joaquin Valley. You saw these numbers last week in

16 Fresno: A 75 percent NOx reduction and a 25 percent ROG

17 reduction for ozone attainment. You can see a NOx

18 weighted strategy here reflecting both ozone and PM2.5

19 attainment needs both in San Joaquin and South Coast.

20 --o0o--

21 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

22 CHIEF KARPEROS: The federal PM2.5 annual average standard

23 is 15 micrograms per cubic meter. The working attainment

24 deadline is 2014, one year ahead of the legal deadline,

25 the same as with ozone.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234516

1 Given the complex mix of particulate pollution in

2 California, we need to target reductions in NOx, ROG, SOx,

3 and direct PM, the later including diesel, dust, and smoke

4 particles. While NOx reductions may be the single biggest

5 part of the solution, the other pollutants are equally

6 important.

7 Unlike ozone, where much of the state exceeds the

8 standard, there are only two areas, the South Coast and

9 the San Joaquin Valley, that are non-attainment for the

10 PM2.5 standard.

11 --o0o--

12 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

13 CHIEF KARPEROS: In California, drafting SIPs is a joint

14 effort. Local air districts write measures for stationary

15 sources and do much of the public process. The South

16 Coast Air District has specific responsibilities under

17 state law unique from other area districts to identity

18 emission reduction targets for their region.

19 ARB provides most of the emission reductions: 90

20 percent in this SIP round. After the air districts adopt

21 their local elements, ARB joins them with the State

22 Strategy to complete the SIP for submittal to U.S. EPA.

23 Their job is to review SIPs for compliance with

24 federal law. Once approved by U.S. EPA, a SIP is

25 enforceable on a state in federal court.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234517

1 As you're aware with your actions on the San

2 Diego plan in May and the San Joaquin plan last week,

3 ozone planning is moving forward.

4 PM2.5 SIPs are due in April of next year. South

5 Coast is doing a combined ozone and PM2.5 plan now. The

6 San Joaquin Valley is doing separate plans.

7 --o0o--

8 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

9 CHIEF KARPEROS: Now, with that behind us, let me turn to

10 the heart of the matter, the proposed State Strategy.

11 --o0o--

12 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

13 CHIEF KARPEROS: The proposed State Strategy reduces

14 emissions from all the pollutants that form ozone and

15 PM2.5, but emphasizes NOx.

16 NOx is common to both ozone and particulate

17 pollution problems. The proposed State Strategy

18 recognizes that mobile sources are the largest contributor

19 of NOx, specifically diesel engine fleets.

20 As new engines have become cleaner exam cleaner,

21 the emissions contribution from older vehicles has been

22 growing to the extent that it will soon make up the

23 majority of mobile source emissions. For example, all

24 on-road vehicles, cars and trucks, 14 years old or older

25 will produce almost 60 percent of total on-road NOx

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234518

1 emissions by 2014.

2 So the simple conclusion is that mobile source

3 NOx reductions from the state's legacy fleet of older,

4 dirtier vehicles must be the main objective of the State

5 Strategy. And it is.

6 --o0o--

7 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

8 CHIEF KARPEROS: I said earlier that the proposed strategy

9 is comprehensive because it proposes to reduce emissions

10 from all major mobile sources of pollution. Construction

11 equipment, heavy-duty trucks, passenger vehicles, ships,

12 and locomotives emit 90 percent of mobile source NOx in

13 the South Coast.

14 Where staff saw other opportunities to reduce

15 emissions, we made sure they were on the list:

16 Recreational boats, off-road recreational equipment,

17 evaporative emission sources, and consumer products.

18 --o0o--

19 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

20 CHIEF KARPEROS: Now I'll go through the major components

21 of the proposed State Strategy by source category,

22 starting with construction and other large off-road

23 equipment. I'll show you a graph of the impact of the

24 State Strategy on the category's emissions, describe the

25 strategy for that category, and then associate the impact

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234519

1 graph, like the one you see here, to numbers. I'll be

2 using South Coast numbers to illustrate.

3 --o0o--

4 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

5 CHIEF KARPEROS: Now to the construction measure. As you

6 see, the State Strategy is aggressive when it comes to

7 these sources. The column on the right is the 2006

8 baseline emissions. The 2014 and 2023 columns include the

9 impact of both adopted measures and the proposed new

10 measures in the State Strategy.

11 --o0o--

12 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

13 CHIEF KARPEROS: Adopted emission standards for new

14 off-road diesel engines are becoming increasingly more

15 stringent. Cleaner engines are available today. But the

16 cleanest engines in the most critical sizes will phase in

17 by 2015.

18 Since large diesel off-road equipment remains in

19 use for long periods of time, often 25 years or more, it's

20 important that we accelerate emission reductions from the

21 legacy fleet of large off-road equipment.

22 The proposed measure would require owners of

23 equipment larger than 25 horsepower to meet a stringent

24 average emission level across their whole fleet. This

25 provides equipment owners flexibility in how they will

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234520

1 comply, swapping older, dirtier engines with new cleaner

2 ones, purchasing used-but-cleaner equipment, and adding

3 emission control devices to older engines.

4 The proposed rule would maximize early diesel PM

5 benefits and maximize NOx reductions over time.

6 --o0o--

7 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

8 CHIEF KARPEROS: Of course you're considering the rule

9 now, with a hearing in July. The rule impacts all fleets,

10 from the largest to the smallest owner-operator fleet.

11 Staff has worked from the outset to maximize emission

12 reductions.

13 --o0o--

14 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

15 CHIEF KARPEROS: With the steadily more stringent off-road

16 engine requirements, emissions are already slated to be

17 cut by 47 tons per day by 2014 and 97 tons per day by

18 2023. The proposed new measures would cut another 10 1/2

19 tons per day of NOx in 2014 and 14 tons per day by 2023.

20 Together, these equate to a 40-percent reduction by 2014

21 and a 77 percent reduction by 2023.

22 --o0o--

23 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

24 CHIEF KARPEROS: Now trucks. As you can see here, the

25 State Strategy aggressively reduces emissions from

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234521

1 heavy-duty diesel trucks. Staff is proposing to leverage

2 the new truck standards phasing in between 2007 and 2010,

3 drastically cutting NOx emissions. As you can see, the

4 benefits come early, most by 2014.

5 --o0o--

6 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

7 CHIEF KARPEROS: Federal and state engine standards will

8 ensure that by 2010 all new diesel heavy-duty trucks are

9 90 percent cleaner than new 2006 trucks. This tremendous

10 progress is on top of a 65 percent reduction in NOx and an

11 85 percent reduction in particulate matter since 1990.

12 But since trucks last a long time, we must bring

13 newer trucks into the fleet at a faster pace to meet air

14 quality goals.

15 Staff proposes to do this through a legacy fleet

16 rule that would require truck fleet owners to meet

17 specified emission levels. Emissions would be reduced

18 through faster turnover to new cleaner engines and add-on

19 emission control devices on older trucks. The proposed

20 measure would address fleets operating in California

21 regardless of whether they are registered out of state.

22 ARB staff has begun workshops on a heavy-duty

23 truck legacy fleet rule. We'll look to maximize both

24 particulate matter and ozone benefits, as we have done

25 with the construction equipment rule. The rule is slated

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234522

1 to come before the Board in 2008. A rule that will reduce

2 emissions from existing port trucks will also be proposed.

3 Making sure that the new ultra-clean diesel truck

4 technology remains clean in use is critical to meeting SIP

5 targets. The technology is new, and durability is

6 unknown. Therefore, ARB staff proposes to evaluate the

7 in-use emissions of the 2010 and newer engines as they

8 move into use; and, if needed, develop approaches to

9 reduce excess emissions due to deterioration, tampering,

10 or mal-maintenance. Over the last months we've evaluated

11 the possibility of increasing the estimated reductions

12 from the fleet rule. We'll discuss that in a moment.

13 --o0o--

14 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

15 CHIEF KARPEROS: Growth in goods movement, and the truck

16 travel that is an integral part of it, presents an

17 important air quality challenge. While statewide truck

18 travel is expected to grow by about 30 percent by 2023,

19 truck emissions will be drastically cut, by about 80

20 percent.

21 --o0o--

22 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

23 CHIEF KARPEROS: Adopted measures will reduce truck

24 emissions by 107 tons per day in 2014. The new measure

25 will add 47 tons per day to that. This equates to a

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234523

1 combined 63 percent reduction in NOx emissions by 2014.

2 2023 truck emissions would be 80 percent lower.

3 --o0o--

4 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

5 CHIEF KARPEROS: Here's the impact of the State Strategy

6 on passenger vehicles, continuing the pattern of what

7 historically has been the most successful passenger

8 vehicle control program in the world.

9 --o0o--

10 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

11 CHIEF KARPEROS: California's passenger vehicle emission

12 standards are so effective that new cars today are 99

13 percent cleaner than they were when ARB began its program.

14 But in order to reduce the emissions necessary to help

15 reach air quality goals, we need to continue to focus on

16 keeping vehicles clean over their lifetimes.

17 --o0o--

18 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

19 CHIEF KARPEROS: The State Strategy envisions an even

20 stronger smog check program than we have today, including

21 annual inspections for older cars and those that

22 accumulate high mileage, like taxis; more stringent test

23 limits; and adding motorcycles and small diesel vehicles.

24 More attention will be paid as well to reducing

25 evaporative emissions.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234524

1 The State Strategy also proposes to increase the

2 number of vehicles that are voluntarily retired by

3 implementing a larger scrap acknowledge program.

4 --o0o--

5 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

6 CHIEF KARPEROS: And again, just as with trucks, the State

7 Strategy will have to overcome growth in travel. We

8 project a statewide increase of about 22 percent in auto

9 travel by 2023, but a NOx emission reduction of almost 80

10 percent.

11 --o0o--

12 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

13 CHIEF KARPEROS: The proposed new measures will reduce

14 total NOx and ROG emissions in the South Coast by 32 tons

15 per day in 2014; 14 tons per day of that is NOx, shown

16 here on the chart. The combined impacts of the adopted

17 and proposed new passenger vehicle measures is a 57

18 percent reduction in NOx emissions by 2014 and a 77

19 percent reduction by 2023.

20 --o0o--

21 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

22 CHIEF KARPEROS: The impact of the proposed State Strategy

23 on the next two major sources categories, ships & harbor

24 craft and locomotives, has a much different dynamic than

25 the previous three categories.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234525

1 Without aggressive action, a combination of

2 tremendous growth in goods movement and little or no

3 engine controls will cause emissions to increase

4 significantly over the next two decades without the State

5 Strategy, as illustrate by the blue bars on this chart.

6 Ships are estimated to jump from the sixth to the second

7 highest NOx producer by 2023. But the proposed new

8 measures in the State Strategy will help control ship

9 emissions, illustrated by the maroon bars, and help

10 counter the effects of growth.

11 --o0o--

12 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

13 CHIEF KARPEROS: The emission reduction plan for ports and

14 goods movement in California, adopted by the Board in

15 April of 2006, is extremely important to the State

16 Strategy and meeting air quality standards. The State

17 Strategy incorporates the measures in the goods movement

18 plan, many of which are already in the works.

19 The ship strategy reduces emissions from main

20 ship engines and auxiliary engines used when they are

21 docked at port. The strategy began with a 2005 rule that

22 phases in the use of cleaner low-sulfur fuel in ship

23 auxiliary engines.

24 Proposed new measures would require low-sulfur

25 fuel in main ship engines, increase electrification at the

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234526

1 ports, reduce speeds near our shorelines, and increase the

2 use of cleaner new or retrofitted main engines.

3 Successful implementation of these measures will

4 require cooperative action at the local, state, federal,

5 and international levels.

6 --o0o--

7 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

8 CHIEF KARPEROS: New English standards for harbor craft

9 began in 2004. Since the useful life of tugboats and

10 other commercial harbor craft is so long, benefits of the

11 new engine standards accrue slowly. So the proposed State

12 Strategy includes a regulation that would require owners

13 of existing harbor craft to replace old engines with newer

14 cleaner engines or to add emission control technologies.

15 That regulation is in the process of being developed and

16 is slated for Board consideration at the end of this year.

17 The regulation will take into account the fact

18 that craft vessels are diverse and may require various

19 combinations of emission reducing strategies.

20 --o0o--

21 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

22 CHIEF KARPEROS: The State Strategy's proposed new

23 measures would reduce ship and harbor craft emissions by

24 50 percent in 2014 and 66 percent by 2023.

25 --o0o--

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234527

1 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

2 CHIEF KARPEROS: Locomotive emissions are also projected

3 to increase without future measures. Given the federal

4 preemption, the success of the State Strategy, illustrated

5 by the maroon bars, is closely tied to federal action.

6 --o0o--

7 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

8 CHIEF KARPEROS: ARB strongly advised U.S. EPA to adopt

9 new NOx standards to support California's attainment

10 needs. Unfortunately, U.S. EPA has proposed a 2017

11 implementation date. In light of this, ARB staff are now

12 looking to maximize emission reductions that build from

13 the practical realities of a 2017 date. The nominal

14 concept calls for an agreement with railroads to

15 accelerate the use of the cleanest possible engines in

16 California.

17 --o0o--

18 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

19 CHIEF KARPEROS: The proposed strategy is projected to

20 decrease locomotive emissions by 24 percent in 2014 and by

21 almost 70 percent in 2023.

22 --o0o--

23 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

24 CHIEF KARPEROS: The measures just presented provide all

25 but 14 tons of the NOx reductions we project are needed

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234528

1 from mobile sources to attain the PM2.5 standard in the

2 South Coast by 2014. In order to meet South Coast needs,

3 we propose to modify our draft State Strategy commitment

4 to achieve these additional reductions. We will pursue

5 these additional tons as each measure is developed.

6 --o0o--

7 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

8 CHIEF KARPEROS: The proposed State Strategy includes a

9 number of other measures that would cut emissions of

10 reactive organic gases.

11 New exhaust and evaporative emission standards

12 for recreational boats and off-road recreational vehicles

13 are proposed.

14 Tanks and hoses where emissions are the result of

15 evaporation of ROG from gasoline are targeted. You

16 adopted one of the proposed rules yesterday for

17 above-ground storage tanks.

18 Two more rounds of consumer product regulations

19 are proposed. One by next year and another between 2010

20 and 2012.

21 --o0o--

22 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

23 CHIEF KARPEROS: Continuing with ROG. Last week you

24 modified California's Reformulated Gasoline Program to

25 fully offset ROG emissions due to the increased use of

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234529

1 ethanol.

2 And the proposed passenger vehicle measures,

3 strengthened smog check and expanded vehicle retirement,

4 will also reduce ROG emissions.

5 Together, the proposed new measures in the State

6 Strategy would reduce ROG emissions by 46 tons per day in

7 the South Coast in 2014.

8 --o0o--

9 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

10 CHIEF KARPEROS: In addition to its large NOx reductions,

11 the emission reduction impact of the proposed State

12 Strategy on other pollutants is substantial. Toxic diesel

13 particulates are drastically cut: 82 percent growing to

14 85 percent reduction in diesel PM from trucks; 80 percent

15 growing to 94 percent reduction in diesel soot from ships.

16 Particle pollution reductions from trains will reach close

17 to 80 percent by 2023.

18 The State Strategy represents the full

19 integration of the Board's Diesel Risk Reduction Plan with

20 its efforts to reduce ozone and PM2.5 pollution.

21 --o0o--

22 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

23 CHIEF KARPEROS: Sulfur oxide emissions are a precursor of

24 PM2.5 pollution. Ships are the main SOx producer in

25 California. Sulfur oxide emissions will be reduced 95

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234530

1 percent by the adopted and proposed new State Strategy

2 measures, mainly through requiring low-sulfur fuels in

3 auxiliary and main ship engines.

4 --o0o--

5 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

6 CHIEF KARPEROS: That complete the description of the

7 individual measures in the SIP. Now I'll shift to talking

8 about the impact of the proposed State Strategy as a

9 whole.

10 --o0o--

11 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

12 CHIEF KARPEROS: The State Strategy will reduce mobile

13 source NOx emissions by 50 percent by 2014. That's double

14 the rate of any ten-year period before. These reductions

15 are essential for meeting the PM2.5 standard in the South

16 Coast and the San Joaquin Valley.

17 --o0o--

18 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

19 CHIEF KARPEROS: The total projected emission reductions

20 in the South Coast and the San Joaquin Valley from the

21 proposed State Strategy are here in the next few slides.

22 This is the emission reductions in the South

23 Coast.

24 Under the plan, NOx emissions will drop by 442

25 tons per day by 2014. They'll drop by 589 tons per day by

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234531

1 2023.

2 Making up the 442 tons per day by 2014 are 336

3 tons from the already-adopted programs and 136 tons from

4 new measures.

5 Similar progress is made on ROG.

6 --o0o--

7 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

8 CHIEF KARPEROS: The last slide showed emission

9 reductions. This chart shows remaining emissions. You

10 can see the progress. However, the adopted measures and

11 the new proposed measures in the State Strategy do not

12 provide all the emission reductions needed to meet the

13 target level for ozone attainment. The light portion of

14 the column above the target line in the year 2023 is the

15 additional reductions needed. These reductions must come

16 from technological innovation.

17 --o0o--

18 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

19 CHIEF KARPEROS: Here is the South Coast ROG emission

20 reduction progress and the remaining ROG emission

21 reductions needed from future technology.

22 --o0o--

23 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

24 CHIEF KARPEROS: Now, let's switch to San Joaquin.

25 Under the plan, NOx emissions will be cut by 287

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234532

1 tons in 2014 and 401 tons by 2023. Making up the 287 tons

2 are 211 tons from adopted state measures and 76 tons from

3 proposed new measures.

4 The ROG reductions are more modest but are

5 sufficient to attain the ozone standard.

6 --o0o--

7 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

8 CHIEF KARPEROS: Here's the NOx reduction progress in the

9 Valley from 2006 through 2023, and the additional tons

10 needed from innovation to reach the 2023 target.

11 --o0o--

12 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

13 CHIEF KARPEROS: And, finally, this slide shows ROG

14 progress in the Valley. As we described to you last week,

15 we meet the ROG reduction target in 2014 without having to

16 rely on new technology.

17 --o0o--

18 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

19 CHIEF KARPEROS: As you saw in the last four slides, even

20 with the tremendous progress from now until 2023,

21 additional emission reductions are needed to meet the

22 ozone targets. That is why the two regions have asked for

23 a bump-up to the extreme classification that provides both

24 the time and the legal framework for securing reductions

25 from technological innovation.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234533

1 Innovation needs are challenging. In the South

2 Coast, it's 241 tons per day of NOx and 40 tons per day of

3 ROG. In San Joaquin, it's 81 tons of NOx.

4 --o0o--

5 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

6 CHIEF KARPEROS: Innovation -- in other words, tomorrow's

7 technology -- is essential to reaching our air quality

8 goals.

9 The State Strategy proposes a directed progress

10 for identifying long-term emission reductions and

11 innovative technology. The process starts with the

12 setting of emission goals for critical categories.

13 Each category's goal will serve as a general

14 target for how much cleaner that emission source category

15 will need to be for attainment purposes.

16 --o0o--

17 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

18 CHIEF KARPEROS: Incentives will speed progress to

19 attainment for both PM2.5 and ozone. It will take money

20 to speed up the process of emission reductions through new

21 standards, natural fleet turnover, and legacy fleet

22 modernization rules.

23 --o0o--

24 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

25 CHIEF KARPEROS: Here's an illustration of the NOx

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234534

1 reduction commitment in the South Coast. It includes

2 adopted measures, proposed new measures, and new

3 technology measures. Adopted and proposed new measures

4 account for 71 percent of the commitment. New technology

5 measures account for 29 percent.

6 I'll add that in San Joaquin Valley, adopted and

7 proposed new measures account for 83 percent of the

8 commitment, while new technology accounts for 17 percent.

9 The point here is that 1) most of the reductions

10 needed for attainment will come from current technologies;

11 2) the State Strategy identifies specific measures for

12 getting them; and 3) ARB has already adopted the

13 regulations securing over half the needed tons.

14 --o0o--

15 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

16 CHIEF KARPEROS: With the proposed strategy, ARB is

17 clearly doing its share when it comes to reducing

18 emissions under its jurisdiction between now and 2023.

19 The black columns are the relative share in 2006 of NOx

20 emissions from local, state, and federal and international

21 sources. The white columns are the share of emissions

22 reduced by 2023.

23 ARB action will provide over 90 percent of the

24 emission reductions achieved between now and 2023. At the

25 same time, state sources are a little over 80 percent of

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234535

1 total NOx emissions.

2 Sources under local control are currently about 9

3 percent of NOx emissions, and will contribute 5 percent of

4 the NOx emission reductions in 2023.

5 Federal and international sources, mostly ships

6 and locomotives, are about 10 percent of current NOx

7 emissions. But due to overwhelming growth, even with

8 aggressive State Strategy control measures, will

9 contribute only 3 percent of the reductions.

10 --o0o--

11 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

12 CHIEF KARPEROS: If you approve the State Strategy today,

13 your action is first and foremost a commitment to reduce

14 the emissions necessary to meet federal air quality

15 standards.

16 The specifics of that commitment are enforceable

17 in a federal court. The proposed strategy contains three

18 specific commitments:

19 First, a commitment to achieve emission

20 reductions by specific dates. In the South Coast and San

21 Joaquin Valley the dates are 2014, 2020, and 2023. The

22 emission reductions are the total for all new measures

23 from each area.

24 Second, a commitment that staff will develop the

25 measures in the strategy, and if they are feasible, bring

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234536

1 them to you for your consideration by specific dates.

2 I'll show you the proposed rulemaking calendar at the end

3 of the presentation. Under the commitment, the state is

4 not bound to adopt every measure in the strategy.

5 However, if a measure is not adopted or it does not get

6 the estimated reductions, offsetting reductions would have

7 to come from elsewhere.

8 And third commitment is one to achieve the

9 reductions needed from new technology for the state's two

10 extreme areas, the San Joaquin Valley and the South Coast.

11 --o0o--

12 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

13 CHIEF KARPEROS: I described earlier how air districts

14 adopted their local element of the SIP and forward it to

15 ARB. ARB then joins the local element with the State

16 Strategy to complete the SIP for the areas.

17 You approved the local San Joaquin Valley SIP

18 element last week. Your approval of the strategy is

19 needed today to provide the bulk of the Valley's emission

20 reductions and complete the Valley SIP. When the Valley

21 SIP is complete, staff will send it to U.S. EPA for their

22 review.

23 --o0o--

24 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

25 CHIEF KARPEROS: The California Environmental Quality Act

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234537

1 and ARB policy require an analysis to identity any

2 potential adverse environmental impacts that may result

3 from adoption of these measures. While it's clear there

4 are overwhelming positive environmental benefits of the

5 State Strategy, identifying possible adverse impacts is

6 still important.

7 The State Strategy is a plan, not a regulatory

8 document, so detailed environmental impacts for each

9 measure will be forthcoming during the specific rulemaking

10 process.

11 The results of the analysis are contained in

12 Appendix E.

13 --o0o--

14 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

15 CHIEF KARPEROS: Staff also did an economic impact

16 analysis of the State Strategy. The annual direct costs

17 are estimated to be approximately 4.6 billion in 2014.

18 Staff estimated a reduction in California's

19 economic output, employment, and personal income of 2/10

20 to 3/10 of 1 percent.

21 It's important to note the significant societal

22 benefits to California from the proposed State Strategy.

23 Prior analyses have estimated that the benefits of

24 California's air quality regulations exceed their costs by

25 a ratio of about three to one.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234538

1 --o0o--

2 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

3 CHIEF KARPEROS: There are a couple of SIP administrative

4 actions that accompany the proposed State Strategy.

5 California is required to submit what is called

6 an Infrastructure SIP. It demonstrates California's

7 ability to implement, maintain and enforce federal air

8 quality standards. The submittal simply updates the

9 comprehensive Infrastructure SIP we did in response to the

10 California Clean Air Act of 1970, and responds to any

11 required new elements.

12 California must also submit an Interstate

13 Transport SIP. It describes the potential for pollution

14 transport to other states and shows that California has

15 the needed programs in place to mitigate transport. Both

16 of these documents are just a few pages long. They're

17 Appendix B and C of the State Strategy.

18 --o0o--

19 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

20 CHIEF KARPEROS: The Department of Pesticide Regulation,

21 DPR, is developing a regulation stated for December 2007

22 to require best available control technology and establish

23 regional emission caps on pesticide use.

24 The reductions from the regulation are included

25 in the San Joaquin Valley eight-hour SIP.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234539

1 DPR is requesting to increase Ventura's one-hour

2 SIP cap that is part of the original 1994 one-hour SIP by

3 one ton per day to address unanticipated acreage growth.

4 As a result of the 1994 SIP, Ventura attained the

5 one-hour standard in 2005.

6 The benefits of the regulation will be in

7 Ventura's eight-hour Ozone SIP.

8 --o0o--

9 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

10 CHIEF KARPEROS: I'll now address various issues that have

11 arisen during the SIP process in the development of the

12 proposed strategy.

13 First, the South Coast adopted an integrated

14 ozone and PM2.5 plan on June 1st that proposed ARB commit

15 to an additional 63 tons per day NOx reductions by 2014

16 for purposes of PM2.5 attainment. The district plan also

17 recommended that ARB consider 12 new or modified measures.

18 Similar suggestions were made by various environmental and

19 health advocates.

20 The timing of ARB's consideration of the State

21 Strategy and the delay in considering the South Coast plan

22 are also a concern.

23 And, lastly, a number of comments have been

24 received regarding consumer products, the Department of

25 Pesticides Regulation's SIP element and other issues.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234540

1 We'll start with the South Coast PM2.5 attainment

2 issue.

3 --o0o--

4 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

5 CHIEF KARPEROS: First, will the proposed State Strategy

6 reduce emissions enough for the South Coast to meet the

7 PM2.5 standard by the 2014 deadline?

8 This is a glass-full story. ARB staff believes

9 the strategy will bring the South Coast into attainment by

10 2014.

11 This is a similar chart to one we shared with you

12 at the April Board briefing on SIP develop. The column on

13 the left represents the measured level of PM2.5 in 2006,

14 20.8 micrograms per cubic meter.

15 The thick horizontal black line represents

16 attainment under U.S. EPA's modeling guidance.

17 There is uncertainty in all calculations. Air

18 quality models are no exception. The thickness of the

19 black attainment line represents the uncertainty U.S. EPA

20 recognizes in PM2.5 modeling. In short, according to U.S.

21 EPA, if future PM2.5 levels predicted by a computer model

22 fall on the black line, that shows attainment when it's

23 supported by other data.

24 The column on the right is the predicted PM2.5

25 level with the proposed State Strategy and the benefits of

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234541

1 the local South Coast Air District measures. As you can

2 see, the PM2.5 prediction falls within U.S. EPA's defined

3 attainment range.

4 --o0o--

5 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

6 CHIEF KARPEROS: The story told by ambient PM2.5 data is

7 even more compelling.

8 The columns on this chart reflect real, measured

9 ambient PM2.5 levels. They show actual pollution measured

10 in the air.

11 In 2001, measured PM2.5 levels were 30 micrograms

12 per cubic meter, twice the standard. In the last five

13 years, the state has cut PM2.5 pollution by a third.

14 Simply put, if the current measured trend holds as the

15 black line suggests, attainment by 2014 is expected.

16 Will the trend hold? Staff believes there is

17 every reason to expect it to. NOx emission reductions

18 have been the driver to the tremendous progress you see on

19 this chart. The proposed State Strategy will double the

20 historical rate of NOx emissions. That is the

21 acceleration of the NOx reductions that you see on the

22 large chart.

23 These three pieces of information together, 1)

24 future predicted PM2.5 levels falling within the official

25 attainment range; 2) the dramatic progress made so far

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234542

1 witnessed by empirical data; and 3) the proposed doubling

2 of the NOx reduction rate, are compelling evidence that

3 South Coast will meet the PM2.5 standard with the proposed

4 State Strategy.

5 --o0o--

6 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

7 CHIEF KARPEROS: Next are the 12 measures suggested by the

8 South Coast Air District that they believe ARB should

9 adopt. Tom Cackette and Mike Scheible will cover these

10 point.

11 CHIEF DEPUTY EXECUTIVE OFFICER CACKETTE: Good

12 morning.

13 Mike and I are going to share this. And I'll

14 address four of them on this first slide and Mike will

15 address two, and then we'll go on to the next slide and

16 catch the other measures.

17 So I'll start with the first one -- the first

18 suggested South Coast measure, which is the first bullet,

19 to require a hundred thousand plug-in hybrid electric

20 vehicles by 2014. And in this -- in the way the South

21 Coast has defined that, these will be vehicles that have

22 all electric range. In other words battery electric

23 vehicles with a range extender.

24 The District also proposes that we have retrofits

25 of existing vehicles -- hybrid electric vehicles, such as

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234543

1 Priuses, and turn them into plug hybrid electric vehicles.

2 In may you addressed the ZEV program. And the

3 ZEV program historically has been the mechanism which ARB

4 has used to push and force new technologies into

5 commercialization. As you heard in may, the ZEV review

6 panel was quite positive about the potential of plug

7 hybrid electric vehicles to be commercialized sometime in

8 the next decade.

9 But as you also heard in May, there's some major

10 challenges remaining, including the advancements of

11 battery technology necessary to make these types of

12 vehicles commercially viable.

13 The potential we think is best determined, not

14 here as a SIP measure, but as part of the ZEV review,

15 which we will be bringing to you in December. And that

16 included your direction to look at ways of incentivizing

17 the introduction of plug hybrid electric vehicles.

18 With regard to the retrofitting proposal with

19 South Coast, we do not think this is a sound proposal. We

20 do not believe that going in and retrofitting -- major

21 retrofitting of existing vehicles is a way to proceed.

22 The second item -- the second bullet there is to

23 require on-board diagnostic retrofits. And what this

24 concept would be is that the car would automatically have

25 a cell-phone-like device that would communicate with some

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234544

1 central station and let the state know that there's a

2 problem with the car, in which case you could then send

3 the person a letter and say, "Come in and get it fixed

4 right away." It's an innovative idea. We have been --

5 we've actually built cars like that in the past to

6 demonstrate the technology. But we have no legal

7 authority for the retrofit portion of this at all. And

8 the idea that we could do it on new vehicles, which is

9 also suggested by the South Coast, is probably technically

10 feasible. But given what the benefits calculated are, we

11 don't think it's really worth putting in a whole new major

12 system like this and rely instead on the smog check

13 program to catch these emissions.

14 The third bullet is to require more aggressive

15 turnover of trucks. This is essentially how aggressive

16 will the retrofit rule that we'll bring to you next summer

17 for both turning over and putting filters on the legacy

18 fleet of heavy-duty diesel trucks, how aggressive should

19 that be. South Coast has made several different

20 suggestions. One would be to increase the turnover rate

21 of older vehicles by at least 50 percent compared to what

22 the staff had been proposing; or to replace all the 2001

23 through 2004 trucks with 2010 engines -- 2010 engines are

24 the cleanest engines -- or replace 30 percent of the 2001

25 to 2006 trucks with these super-clean engines and retrofit

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234545

1 NOx device as well as DM devices on to those vehicles. So

2 there's several variations they've suggested.

3 Our proposal at least at its current stage -- and

4 it's certainly undergoing develop and also some learning

5 from what will happen with the construction equipment

6 rule -- is to have all of the trucks be the equivalent of

7 2004 level engines by 2014, which will generate a 75

8 percent NOx reduction and a greater than 85 percent PM

9 reduction. So it's very aggressive. It's very large

10 reductions in PM. Does not get as many NOx reductions as

11 the South Coast would like.

12 But like the construction rule, you know, there's

13 an ability to pay threshold here that we're trying to deal

14 with. And you heard that in great detail on the

15 construction rule last month. And, you know, there's a

16 line I guess about how far you can go on the economics

17 here. It's not technology driven. And the South Coast

18 proposal at least to date has not really addressed this.

19 So we're trying to address it. And what we will bring to

20 you next summer will be the most aggressive NOx control

21 that also gets, you know, a virtual elimination of the PM

22 emissions as well.

23 And the fifth bullet down, it will be the last

24 one I'll address on this slide, which is the construction

25 rule. And I don't think I really need to say much about

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234546

1 this since the Board heard this in great detail at a

2 previous Board meeting. But the South Coast proposal is

3 basically to double the turnover rate in the early years

4 of the program, which adds costs to the early years. And

5 those happen to be the years in which the costs under our

6 proposal are also the highest. So it adds a substantial

7 economic burden in the early years.

8 What we heard at the Board meeting was that we

9 needed to be sensitive to that and perhaps figure out a

10 way of leveling out some of those costs, and also to pay

11 more attention to the individual fleets and what the

12 impacts on them would be. And that's what we're doing

13 between May and when we'll bring the proposal back to you

14 in July.

15 And we will of course try to get the maximum

16 degree of NOx reduction. But it will -- undoubtedly will

17 not achieve the full reduction that the South Coast would

18 like.

19 DEPUTY EXECUTIVE OFFICER SCHEIBLE: I'm going to

20 address the two measures that are related to port trucks

21 and cargo handling equipment at ports.

22 As we mentioned yesterday, we are developing a

23 measure that will affect those trucks that go to ports in

24 any significant number or go to other intermodal

25 facilities such as rail yards, where the truck is taking a

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234547

1 container and dropping it off. These are places where the

2 nearby communities are heavily impacted by the diesel PM.

3 Our measure is aimed at getting an order of a 90

4 percent reduction as soon as possible from the trucks in

5 this service to reduce the community risk; and while doing

6 that, to get a substantial NOx reduction.

7 The ports of L.A. and Long Beach accepted that

8 part of the measure and wanted to go further and actually

9 stress a combination of PM control and more substantial

10 NOx reduction. In order to do that, you have to basically

11 go to 2007 and newer trucks in that service.

12 We've designed our measure so it will work in

13 concert with the state bond funding, on the presumption

14 that port trucking and intermodal trucking would be a high

15 priority. And I've costed it out at several hundred

16 million dollars in order to institute the statewide

17 strategy. To do it the way that it was proposed in the

18 port plan, it would be upwards of one billion dollars,

19 depending on how it could be between -- slightly above one

20 billion to almost two billion, depending on the route

21 that's chosen.

22 We're trying to design our measure in tandem with

23 the ports' measures so that they are compatible, they

24 support each other. But basically it's a matter of

25 funding. And we don't think we can bring you a rule that

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234548

1 requires that level without a funding source for your

2 consideration.

3 But clearly it will be before the Board later on.

4 And we are trying to work in a way that maximizes the

5 utility of our rule statewide and is compatible with the

6 port's plan.

7 The port plan also included a strategy that would

8 say we're going to get the cargo handling equipment

9 upgraded more quickly than required by the statewide rule

10 that this Board adopted the end of 2005. We again are

11 supportive of that strategy. Our rule will replace the

12 major emitting equipment, the yard tractors, by 2010. And

13 the port's plan would do that a little earlier. And the

14 real question is: How do you upgrade the cranes and the

15 other equipment, the mobile cranes, lifters, and other

16 things?

17 We designed our rule so that we could take

18 advantage of the off-road engines that come about in the

19 2014 time frame and 2015 time frame with much lower NOx.

20 So we don't think that there's a big NOx gain to be gained

21 by accelerating it before those engines are available.

22 But we will be working with -- again with the ports. If

23 they can bring either lease conditions or funding that

24 encourages people to do things faster, we'll be supportive

25 of that.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234549

1 CHIEF DEPUTY EXECUTIVE OFFICER CACKETTE: And

2 I'll address two of the items on this and Michael address

3 the rest.

4 The first one is the second bullet down, which is

5 "require electrification of airport ground support

6 equipment." That's the baggage tugs and pushback things.

7 We talked a little bit about that yesterday.

8 South Coast is proposing that we do more

9 electrification to fulfill an MOU that was voided by the

10 airline industry.

11 And that we also lower the fleet average standard

12 that the non-electric vehicles would have to comply with.

13 The Board addressed this issue just last year in 2006 and

14 they set new standards, which will be fully in place by

15 2013. So the road map for lower emissions is pretty well

16 in place for the next -- well, through 2013.

17 The electrification goal of the MOU we showed at

18 that time had already been met. In fact, in the South

19 Coast the electrification is over 35 percent and the

20 target had been 30 percent. And as we discussed

21 yesterday, there are some limits into how much more

22 electrification can occur. But to the degree it can

23 occur, we think it will occur because the infrastructure's

24 in place and there's a larger degree of comfort with this

25 technology now by the airport operators.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234550

1 We will certainly look at the potential to

2 tighten these standards up even more. But it would have

3 to occur after the 2013 time frame, which really means

4 it's a target for the Ozone SIP and not the PM SIP. And

5 what's at stake here is -- in 2014 is something that's

6 less than a ton per day.

7 The fourth bullet down is tighter controls or

8 emission standards on pleasure craft, and also early

9 retirement of some of those pleasure craft. And what

10 we're talking about here are outboard engines, jet skis,

11 and inboard engines.

12 And South Coast would propose that 20 percent of

13 the oldest boats be scrapped and replaced with newer boats

14 by 2014 and that we tighten the exhaust standards for the

15 new engines, both the inboards and the outboard engines.

16 The Board has addressed both of these categories

17 earlier. Probably five or six years ago we addressed the

18 outboard and what we call PWCs or the jet skis. And more

19 recently the kind of ChrisCraft-type boats with inboard --

20 larger inboard engines. Those are being implemented in

21 the sort of 2008, 2009, 2010 time frame.

22 We think that more is possible and we are taking

23 steps to do that. For example, we are developing an

24 evaporative emission control requirement for the red

25 jerrycans that you carry around to fuel the outboards and

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234551

1 the jet skis, ones that don't have the fuel storage tank

2 onboard.

3 We've also initiated a catalyst demonstration

4 program for outboard engines to see whether we can tighten

5 the standard based on availability of catalyst.

6 But, again, I think the potential here for the

7 new engines is beyond -- equal to or beyond the 2014 time

8 frame and would be most beneficial for the ozone

9 attainment plan. And we'll work on that very hard.

10 With regard to the scrapping, we of course don't

11 have a large pot of money to do that. And I guess it's

12 estimated at over $50 million. But to the extent the

13 District wishes to fund this, that's certainly a possible

14 strategy.

15 And the other possible strategy is just a

16 restriction on the use of the older dirty boats. When the

17 Board adopted the standards for new boats, we've had a

18 mandatory labeling. So there's these big bright stars

19 that are now on the side of the jet skis and the outboard

20 engines -- one, two, or three stars. And the purpose of

21 those was to be able to segregate vehicles out if local

22 districts or local governments wanted to say that the

23 older engines couldn't be used. So it's a tool that they

24 could use to accomplish this without the need for a large

25 pot of money for a retrofit.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234552

1 DEPUTY EXECUTIVE OFFICER SCHEIBLE: Okay. On the

2 locomotive strategy, staff has mentioned earlier that this

3 is an area where we must persuade others to take the

4 actions that we need in order to get emission reductions.

5 The first place we have to be persuasive is with

6 the U.S. Environmental Protection Agency, that has the

7 sole authority to set emission standards for new

8 locomotives. We had designed this measure based on their

9 advanced notice of proposed rulemaking, which was made

10 several years ago where they said they might set standards

11 as early as 2012. They have since actually made a

12 proposal. And their proposal says the NOx standards won't

13 occur until 2017. We're working as hard as we can to

14 influence that, to get it to be much earlier. But I think

15 it's doubtful that we'll see something that could be done

16 in the 2012 time frame.

17 Fortunately there's some other aspects of their

18 proposals that may bring us some interim NOx reductions,

19 that aren't as good as the final 90 percent, that we could

20 leverage; and then also some additional PM reductions

21 through retrofits of existing locomotives.

22 So we're going to have to work pretty hard to

23 maintain the existing commitment in the SIP to get the

24 emission reductions we've outlined based on a more

25 optimistic federal schedule.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234553

1 We also need to repeat the agreement we had with

2 the railroads that vastly accelerated the introduction of

3 the clean locomotives once they're available. The SIP

4 strategy was designed to do that over about an eight-year

5 period. I believe the South Coast strategy would like to

6 have us do that over a two or three year period. And we

7 don't think that we can get that turnover in the fleet to

8 occur as quickly as the strategy's called for.

9 On the control of transportation refrigeration

10 units, these are the units that are mounted on trailers or

11 on trucks that keep their produce cold. Or they're on

12 rail cars. We adopted a rule two and a half years ago

13 that requires the turnover and upgrade of these units.

14 The way to get NOx reductions, unfortunately,

15 is -- it would call for a retrofit. The new engine rules

16 for these don't give you the final level of NOx control

17 and there aren't retrofits available. That's why we're

18 not ready to commit to this one.

19 In terms of the SOx reductions from gasoline,

20 last week we were in Fresno and the Board adopted the

21 proposed measure on that. We will be lowering the sulfur

22 content of gasoline down to where we believe about 5 PPM.

23 We've already accounted for the NOx reductions in that

24 measure. But I believe there are some SOx reductions that

25 will help with PM attainment in the South Coast and the

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234554

1 San Joaquin Valley that we should take into account and

2 take credit for in our plan.

3 The last measure is to require cleaner diesel

4 formulations. One way to do that is to use something

5 called fishertropes or solids or gas to liquid diesels

6 that are much cleaner. You can blend this in with regular

7 CARB diesel. Our assessment is that it's extremely

8 expensive because the availability of that fuel on the

9 worldwide market is small compared to demand. And so it

10 would take a fair amount of money to bid enough of it into

11 the California market to make sense.

12 However, we also identified yesterday the low

13 carbon fuel standard as a strategy to go forth. And

14 actually for biodiesel or reformulated -- that's not

15 reformulated diesel. It's basically a different way of

16 making renewable diesel in the refinery. We might have

17 options there. So I think we should look at this issue

18 more carefully as we do that rule making, to see if

19 there's a way we could -- while we get the carbon

20 benefits, we can also seek some additional -- we might get

21 some additional NOx reductions from -- on the diesel side.

22 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

23 CHIEF KARPEROS: I'll continue.

24 Environmental groups have also suggested

25 additional control measures. They've asked for stronger

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234555

1 fleet rules, more car scrappage, a better smog check

2 program, cleaner consumer products and marine vessels, rec

3 boats and fuels.

4 They also want ARB staff to quantify the emission

5 reductions for the proposed Agricultural Equipment Rule.

6 --o0o--

7 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

8 CHIEF KARPEROS: We've received comments about the SIP

9 other than suggestions for control measures.

10 Environmental groups have expressed concern about

11 the Strategy's reliance on future technology for part of

12 the emission reductions needed for ozone attainment and

13 the specificity of the advanced technology commitment.

14 They also indicated they believe the plan's

15 reliance on adopted measures to meet the federal

16 requirements for contingency measures is flawed.

17 We've received comments from the representatives

18 of the agricultural industry supporting the substitution

19 of mobile source emission reductions as part of DPR's

20 rulemaking for Ventura County pesticide regulations. And

21 we've received very strong comment opposing the action,

22 citing the court's involvement in the matter.

23 Representatives of the consumer products industry

24 have submitted comments on the consumer product emissions

25 inventory, alternative control approaches, and the

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234556

1 reactivity of consumer product emissions.

2 Finally, we received one comment that the

3 proposed strategy does not adequately deal with the

4 pollution transport, growth, and land use.

5 --o0o--

6 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

7 CHIEF KARPEROS: Finally, the last issue I'll describe is

8 the consideration of the South Coast Plan. We've

9 postponed consideration of the plan, the ozone and PM2.5

10 plan. We did so because two SCAG measures, a critical

11 part of the issue, are incomplete.

12 The September hearing is the next available date

13 when we could bring the District's plan to you.

14 --o0o--

15 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

16 CHIEF KARPEROS: There are two actions the staff is

17 recommending for the Board today.

18 --o0o--

19 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

20 CHIEF KARPEROS: Staff recommends that the Board adopt the

21 proposed State Strategy for California's 2007 SIP. This

22 would include an additional commitment of 14 tons per day

23 of NOx emission reductions in the South Coast for 2014 for

24 PM2.5 attainment. It would also include minor technical

25 corrections and clarification to the April 26th draft and

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234557

1 the May 7 appendices.

2 Finally, staff recommend that you approve the

3 Infrastructure SIP and Interstate Transport SIP.

4 --o0o--

5 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

6 CHIEF KARPEROS: Finally the last few slides.

7 Adoption of the Strategy will establish a

8 rulemaking calendar for SIP measures over the next few

9 years. This rulemaking calendar is part of the proposed

10 SIP commitment.

11 --o0o--

12 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

13 CHIEF KARPEROS: Starting with actions that happen this

14 year:

15 Cleaner in-use off-road equipment.

16 Modifications to Reformulated Gasoline Program.

17 You did that last week:

18 Cleaner Main Ship Fuel.

19 Ship Speed Reduction.

20 Shore Power for Ships.

21 And Cleanup of Existing Harbor Craft.

22 And, finally, Enhanced Vapor Recovery for

23 Above-Ground Storage Tanks. That was taken care of

24 yesterday.

25 --o0o--

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234558

1 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

2 CHIEF KARPEROS: Moving to 2008:

3 Cleaner In-Use Heavy-Duty Trucks.

4 Port Truck Modernization.

5 Cleaner Ship auxiliary Engines.

6 And Cleaner Line-Haul Locomotives.

7 And, finally, a round of Consumer Products

8 Regulations.

9 --o0o--

10 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

11 CHIEF KARPEROS: Last, in 2009 to 2012. First '09:

12 Cleaner In-Use Agricultural Equipment.

13 New Emission Standards for Recreational Boats.

14 Expanded Off-Road Recreational Vehicle Emission

15 Standards.

16 Additional Evaporative Emission Standards.

17 And, finally, a second round of Consumer Product

18 Regulation.

19 That concludes my presentation. Thank you for

20 your patience.

21 CHAIRPERSON SAWYER: Thank you very much.

22 We'll start with the Board Member questions.

23 Who wants to lead off?

24 Dr. Gong.

25 BOARD MEMBER GONG: Just a quick question.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234559

1 The U.S. EPA administrator is deliberating about

2 the new ozone standard -- federal ozone standard. How

3 does that affect our state SIP, or does it, once it comes

4 out I guess from them?

5 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

6 CHIEF KARPEROS: The planning cycle -- the standard of

7 course that we're dealing with now is the existing

8 eight-hour standard. The EPA has to go through the

9 rulemaking process to set the standard. They'll have to

10 go through a classification scheme, develop implementation

11 rules. We're not expecting that for a number of years.

12 But, more practically, the program sort of is

13 distributed by -- you know, indicated by the summary

14 chart. The programs that we're proposing here in this

15 strategy would continue to reduce emissions going forward.

16 So we're already getting our first step at moving towards

17 that new standard as we work on the current standard.

18 BOARD MEMBER GONG: Does that require a revision

19 of the SIP with that or --

20 EXECUTIVE OFFICER WITHERSPOON: Dr. Gong, the SIP

21 is revised every three years anyways whether the standards

22 change or not. And so as the new standard phases in with

23 the new attainment deadlines, we'll add that review to the

24 ongoing review of this SIP.

25 BOARD MEMBER GONG: Thank you.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234560

1 CHAIRPERSON SAWYER: Ms. D'Adamo.

2 BOARD MEMBER D'ADAMO: Question regarding slide

3 60, the pie chart showing the percentage relied upon for

4 new technology measures.

5 Could staff estimate what percentage within that

6 section would hope to be achieved by incentive measures

7 versus new technologies that appear to be on the horizon?

8 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

9 CHIEF KARPEROS: We've done some analysis where we've

10 estimated emissions going forward with full conversion to

11 the existing and upcoming current standards. I don't

12 recall specifically what that was in the South Coast.

13 With a new standard set for the incentives and programs to

14 accelerate, even introduction to that newer standard would

15 be part of this as well. So I think, you know, arguably

16 you're looking at a mix of both for that and a mix of

17 incentives to bring forward the new technology.

18 BOARD MEMBER D'ADAMO: Well, just as an example,

19 I know that there are individuals from the Governor's

20 California Partnership that are seeking incentive dollars

21 in the San Joaquin Valley to the tune of $100 million per

22 year, which is going to be very challenging to even obtain

23 that. But somehow if they were to magically obtain the

24 $100 million, what would this pie chart look like for the

25 valley?

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234561

1 And I don't know if there are comparable figures

2 that exist for South Coast. But that's basically where

3 I'm headed with the question.

4 AIR QUALITY AND TRANSPORTATION PLANNING BRANCH

5 CHIEF KARPEROS: Our analysis of the potential impact of

6 that sort of money and the full conversion of the new

7 standards would cut the advanced technology needs in half.

8 EXECUTIVE OFFICER WITHERSPOON: If you recall,

9 there was an estimate in the San Joaquin Valley that we

10 needed roughly 2.5 billion to completely purchase our way

11 out of the black box. And in this presentation as it

12 relates to the South Coast, staff showed you an estimate

13 of just to get 63 tons of NOx we needed 5 to ten billion.

14 So you can scale up to the 241 how many billions you would

15 need if you tried to go after it in a monetary way.

16 And certainly we expect to have more incentives

17 as time goes by, additional bond measures, for example.

18 But none of us are so bold as to think we'll get, you

19 know, 20, 30, 40 billion to work with. So our traditional

20 reliance on technological know-how is still very much part

21 of the future scenario.

22 CHAIRPERSON SAWYER: Professor Sperling.

23 BOARD MEMBER SPERLING: Just a quick follow-up on

24 that, you know, if going to slide 72. And I guess this is

25 as much for Tom Cackette as -- and Mike Scheible.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234562

1 You know, many of these measures to accel -- are

2 basically accelerating turnover and accelerating the

3 introduction of vehicles. What funding -- in addition to

4 other state funding that could or might be available, what

5 about in the South Coast? They've historically provided

6 substantial incentive programs. Is there any -- are there

7 any proposals specifically for any of these additional

8 measures? And how effective might they be?

9 DEPUTY EXECUTIVE OFFICER SCHEIBLE: Well, the

10 port's plan for the sources that they influence calls for

11 funding mechanisms where they would generate via tariffs

12 or gate fees or something like that as part of the lease

13 agreement's funding source for the trucks and the other

14 equipment at the port. And that's a substantial funding

15 source. But that only could be applied to the vehicles

16 that do business there, which is a relatively small

17 fraction of the basin-wide fleet.

18 DEPUTY EXECUTIVE OFFICER TERRY: There is an

19 existing funding source that the South Coast Air

20 District -- motor vehicle registration fees that is

21 divvied up in this region in three ways: The South Coast

22 Air District, their mobile source -- reduction committee,

23 and then local cities and counties. So over the years we

24 have provided guidance encouraging the local government to

25 use those dollars wisely in the most cost effective

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234563

1 manner. So, you know, we have certainly tried to steer

2 them towards these kinds of projects to deliver the most

3 cost-effective tons.

4 EXECUTIVE OFFICER WITHERSPOON: And, Dr.

5 Sperling, pending in the Legislature is a proposal to

6 provide an additional 20 million a year for the

7 Construction Rule. And we've estimated, unfortunately,

8 that only captures about a thousand pieces of equipment

9 per year out of the 180,000 that are subject to the rule.

10 So it's helpful, but it's not a big part of the solution.

11 CHAIRPERSON SAWYER: I have several questions to

12 clarify my understanding.

13 First dealing with the uncertainty in the PM2.5

14 attainment requirements. What is EPA approvable? If we

15 send forward a plan without the 63 additional tons of NOx

16 that the South Coast believes are required, is that

17 approvable by the EPA?

18 DEPUTY EXECUTIVE OFFICER TERRY: I'll start from

19 a big picture and perhaps Legal can step in.

20 As was mentioned in the staff presentation,

21 there' a specific statute that deals with air quality

22 planning in the South Coast. And the South Coast plans

23 are designed to meet both the California Clean Air Act and

24 the Federal Clean Air Act. And then there are ground

25 rules about how the agencies interact, the state, the air

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234564

1 district, and the Association of Governments.

2 And so we have an issue that under California

3 state law we must accept the carrying capacity developed

4 by the local air district unless the Board decides to make

5 a change and go through a conflict resolution, et cetera.

6 However, under federal law, EPA is obviously not

7 constrained by state law. And to the extent they receive

8 a SIP that they feel complies with their guidance, this

9 issue of what the district believes to be the carrying

10 capacity is somewhat a legally ambiguous area.

11 But nonetheless, we are bound by state law in

12 terms of our interactions with the local district and

13 SCAG.

14 EXECUTIVE OFFICER WITHERSPOON: The short answer

15 is we believe it's federally approvable, the plan that we

16 have identified, because it falls within U.S. EPA's

17 modeling guidance.

18 CHAIRPERSON SAWYER: And a further question along

19 the same line. As 2014 approaches, presumably the

20 uncertainty in what's required for attainment will

21 decrease. Is there a mechanism to adjust the plan as time

22 progresses?

23 EXECUTIVE OFFICER WITHERSPOON: Well, there are

24 anti-backsliding provisions that would inhibit taking

25 measures out even if you thought you were overperforming.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234565

1 And so we prefer to go with the optimistic assessment that

2 says, and is strongly buttressed by air quality data and

3 the downward emissions trend, that we have more than

4 sufficient reductions to get to the 2014 target. So we

5 wouldn't put in 63 and then take it out later.

6 CHAIRPERSON SAWYER: A second area. Smog check,

7 and what is needed. It's not too clear to me what we have

8 the authority to do, what BAR has the authority to do, and

9 what new legislation is required.

10 Could you expand on that a little bit on where

11 we're headed in smog check?

12 CHIEF DEPUTY EXECUTIVE OFFICER CACKETTE: Of the

13 items that are listed, there's some ambiguity about what

14 the authority is. It's clear we need legal authority to

15 do annual inspections of the older vehicles. And there's

16 a bill in the Legislature that would provide that

17 authority. There's some ambiguity about whether the

18 Bureau of Automotive Repair, that implements this, has the

19 authority to add additional classes of vehicles like

20 diesels and motorcycles there. We're expecting that that

21 might just get resolved by putting it into a bill

22 somewhere and dealing with the ambiguity.

23 The other things that have been listed or

24 referenced here are already being done. Like the

25 low-pressure EVAP test has been already proposed by BAR

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234566

1 and expected to be adopted finally within months of now.

2 So that one doesn't require any legal authority.

3 CHAIRPERSON SAWYER: And yet more.

4 In the cleaner main engine ship fuel proposal,

5 what is our authority to require that? Or is it something

6 that has to be negotiated through a memorandum of

7 understanding?

8 DEPUTY EXECUTIVE OFFICER SCHEIBLE: We believe we

9 have the authority to require ships to use cleaner fuel

10 and meet lower emission standards so long as we show that

11 their emissions are impacting our air quality and it's

12 technically doable.

13 We are being sued in court over that decision.

14 That decision was made as part of the auxiliary Engine

15 Rule. So applying it to the main engines is legally I

16 believe the same thing.

17 CHAIRPERSON SAWYER: I would like to endorse the

18 SCAG proposal for electrification of rail and putting in

19 place truck-only lanes as part of the strategy.

20 Is that likely to happen or is that -- is the

21 funding of that just so great that it's not likely to

22 happen?

23 EXECUTIVE OFFICER WITHERSPOON: Well, Dr. Sawyer,

24 you'll have an opportunity to do that when the South Coast

25 and SCAG plan comes to you in September. And the question

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234567

1 you just asked is exactly what the region is examining

2 right now. And the reason the plan isn't here today is

3 that SCAG circulated its proposed measure for further

4 public comment. And there is some concern in the region

5 about priorities assigned to different projects, what gets

6 funded first, what happens if these very ambitious targets

7 aren't realized for those two projects and would it create

8 greater conformity jeopardy.

9 But SCAG's view is that because they are to be

10 funding through tolls, that they are self-supporting and

11 that it is viable, they're not relying on vast amounts of

12 federal and state funding to accomplish them. But it's

13 still a tricky proposition to get it up and off the

14 ground. And many observers think it will -- if they're

15 successful, they might take a little longer than 2014 to

16 completely pull it off.

17 CHAIRPERSON SAWYER: Is there anything that we

18 can or should be doing to support that?

19 EXECUTIVE OFFICER WITHERSPOON: Well, we were

20 working closely with the Business and Transportation

21 Housing Agency and with Caltrans on the priorities --

22 state priorities for goods movement. And we have

23 consistently supported extensive -- excuse me -- additions

24 to freight movement, because getting cargo off of trucks

25 and on to trains is advantageous from an air quality

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234568

1 perspective. So our general support of freight projects

2 would lend itself to these two.

3 I think the State of California has also been

4 very supportive of the 710 truckway and helping to relieve

5 congestion on that roadway. I believe it made the top 15

6 projects that the state was advocating in the final goods

7 movement and emission reduction plan -- or, excuse me --

8 goods movement plan.

9 CHAIRPERSON SAWYER: And, finally, in hearing the

10 San Joaquin Valley plan last week, the use of operational

11 controls was discussed.

12 Are similar operational controls a good strategy

13 for the South Coast? And I don't believe I saw anything

14 like that mentioned.

15 EXECUTIVE OFFICER WITHERSPOON: Between our two

16 staffs, the only operational control we've discussed at

17 any length is restricting boat use on summer high ozone

18 days, the dirtier boats. But locally there hasn't been

19 much discussion of operational controls.

20 CHAIRPERSON SAWYER: So is there an opportunity

21 for using operational controls to assist in meeting the

22 air quality requirements in the South Coast basin?

23 EXECUTIVE OFFICER WITHERSPOON: I stand

24 corrected. Mr. Cackette just whispered under his breath.

25 We've also talked about fireplaces as a strategy

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234569

1 to achieve the fine particle standard and to have a

2 moratorium on burning during the critical winter months to

3 avoid going over the standard. And the district has

4 proposed a partial restriction on fireplace use on

5 particulate episode days. And so that is part of their

6 local strategy.

7 CHAIRPERSON SAWYER: Fine. Thank you very much.

8 Dr. Gong.

9 BOARD MEMBER GONG: Just a follow-up question.

10 Could you show slide 60 again.

11 Thank you.

12 Obviously NOx is a major problem. And looking at

13 the slide, I'd like to ask this perhaps naive question.

14 The new technology measures are measures that are not yet

15 realized but we anticipate? Is that the general

16 understanding about that?

17 EXECUTIVE OFFICER WITHERSPOON: That's right.

18 For example, in off-road mobile sources it would be Tier 5

19 standards, which don't exist today. We have Tier 4 that

20 we're seeking to implement through the Construction Rule.

21 But we would need another round of technology beyond Tier

22 4.

23 BOARD MEMBER GONG: And is this anticipated

24 technology 90 percent assured or with confidence or 50 or

25 what?

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234570

1 EXECUTIVE OFFICER WITHERSPOON: Nothing is

2 assured. We have to analyze over the next several years

3 what are the likeliest prospects for technological

4 development and then pour our energies into bringing those

5 into commercialization so that we can close this gap.

6 BOARD MEMBER GONG: Right. I guess I'm thinking

7 back on other examples of where anticipated technology did

8 not develop as anticipated, and we had a shortfall on

9 certain things. And here I see it's a significant part of

10 the pie, 30 percent. So that gives me a little bit of an

11 edgy feeling.

12 And I think Tom would like to pitch in.

13 CHIEF DEPUTY EXECUTIVE OFFICER CACKETTE: I think

14 there's a range of from comfort to edgy feeling in this

15 case. In the case of putting catalysts on outboards,

16 which is one of the things that we discussed here as an

17 advanced technology. You know, that's probably fairly

18 probable that that will be successful. If you're talking

19 about whether we can come up with, you know, a Tier 5

20 truck or a Tier 5 off-road piece of equipment or can we

21 have 50 percent of the vehicles be battery electrics or

22 plug-in hybrid electrics with all electric range, you

23 know, those are more speculative at this point.

24 BOARD MEMBER GONG: I get the impression, perhaps

25 naively again, that the more money we can put into that 29

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234571

1 percent to support new technology, the higher the

2 confidence we would have, I would assume.

3 EXECUTIVE OFFICER WITHERSPOON: Well, there's a

4 combination of things. Certainly money going into

5 technological innovation helps. That category also

6 includes sources we never regulated because it would cost

7 too much. Either they were categories exempted out or

8 small users exempted out. And so money allows you to go

9 back and scoop up every last unit that our rules didn't

10 capture. So that's part of it.

11 BOARD MEMBER GONG: Okay. Well, I believe in

12 technology, believe me. But we'll see.

13 Thank you.

14 CHAIRPERSON SAWYER: Supervisor Hill.

15 SUPERVISOR HILL: Thank you, Mr. Chair.

16 Looking at and following up on Dr. Gong's

17 question. The 241 tons per day issue of slide 60, the new

18 technology measures, if you took the South Coast suggested

19 measures -- and is there a way to quantify the tons per

20 day NOx reductions of those items if we were to implement

21 every one of those?

22 EXECUTIVE OFFICER WITHERSPOON: Their proposed

23 measures are for 2014. And so looking out by 2023 we have

24 most of those tons with the rate of turnover we've already

25 committed you to adopting in the Construction Rule, the

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234572

1 Truck Rule, the Goods Movement Rule. There might be some

2 as we go farther out. But we'd have to go back and

3 calculate the --

4 DEPUTY EXECUTIVE OFFICER TERRY: The additional

5 tons are roughly 70 according to the District's

6 accounting.

7 SUPERVISOR HILL: Seventy?

8 DEPUTY EXECUTIVE OFFICER TERRY: Seventy tons a

9 month.

10 No, in 2014.

11 Oh.

12 No. We haven't carried -- as Katherine

13 indicated, those are 2014 tons. And then we would have

14 achieved those. It's essentially early reductions, early

15 acceleration. So we project those in the base line for

16 2023 already, take them into account.

17 SUPERVISOR HILL: Thank you.

18 CHAIRPERSON SAWYER: Okay. Any other questions?

19 Supervisor Case.

20 BOARD MEMBER CASE: Mr. Chairman, just a couple

21 of questions.

22 And I'm glad we're all focusing on that one slide

23 that shows that there's anticipation for new technology.

24 That was one of the most controversial components of the

25 San Joaquin Valley proposal, was the fact that deadlines

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234573

1 had to be pushed back. And it sounds like South Coast is

2 on the same trajectory, basically, to end up doing the

3 same thing. I do understand part of that is because of

4 the methodology used by the EPA as to which category

5 different air basins engines were placed initially into.

6 But again, I think we really need to be as

7 focused as possible to move forward some of those emission

8 reductions. South Coast certainly sounds concerned in

9 some of the suggestions.

10 I did pick up -- one of the suggestions was

11 requiring electrification of airports. That was one of

12 our discussions yesterday in terms of reduction of carbon

13 emission. And I still am conflicted that I -- I would

14 like to revisit that because I think we need to be more

15 broad in our basis.

16 But that being said, is there anything in the

17 South Coast proposals that would be improvements both for

18 South Coast and for the San Joaquin Valley that we might

19 be able to bring forward? Because, again, the timing

20 issue is really important for folks. And if you have a

21 problem breathing, it's even more important, because today

22 is an important day that you can breathe well. And folks

23 are concerned about having too long of a period of time in

24 which that may be even more harmful to their health.

25 EXECUTIVE OFFICER WITHERSPOON: All of the South

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234574

1 Coast suggestions are accelerations of what staff has

2 proposed. And as Mr. Scheible and Mr. Cackette went over,

3 for some of them we think they're not cost absorbable by

4 the affected industry, such as the acceleration of the

5 Construction Rule and of the Truck Rule. There is a

6 threshold at which those industries would be crushed.

7 For others, such as the dramatic expansion of

8 plug-in hybrids, we believe the technology is not there to

9 achieve 100,000 vehicle penetration before 2014.

10 So we looked carefully at all of these measures

11 before we brought you our SIP. And staff continues to

12 believe you have before you the most aggressive plan in

13 the world and the fastest achievable rate of progress

14 given all of the constraints and all of the factors that

15 we have to balance.

16 CHAIRPERSON SAWYER: Professor Sperling.

17 BOARD MEMBER SPERLING: I'm new to the SIP

18 process, so perhaps I'm being naive. But I understand

19 what we're talking about now is just the state activities

20 to support the plan for the region; correct?

21 EXECUTIVE OFFICER WITHERSPOON: That's correct.

22 BOARD MEMBER SPERLING: So are we going to hear

23 at some -- like in the suggested measures, there's nothing

24 there and there's nothing that we've talked about that

25 deals with travel, level of travel, level of usage of

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234575

1 vehicles. And, you know, usually that would be a local

2 initiative. Are we going -- one, I guess, are we going to

3 hear about that at some point? Number two, are there some

4 things that can be done at the state level? You know, in

5 the old days, there were employer-based trip reduction

6 ordinances, there were these so called transportation

7 control measures where there was some state involvement in

8 that. There's now new initiatives with using information

9 technologies and telematics to reduce travel, you know,

10 car sharing, smart paratransit type things. That would,

11 you know, fall more under the jurisdiction of Caltrans,

12 BTH. But perhaps -- are we ignoring something, I guess is

13 my question, that we shouldn't be?

14 EXECUTIVE OFFICER WITHERSPOON: No, Professor

15 Sperling, those measures still exist at the local level

16 and they are pursued primarily for congestion relief. As

17 cars have become so dramatically cleaner, they pay off

18 less and less in terms of NOx and ROG reductions. But

19 they're still very much a part of local transportation

20 management and they're imbedded in SCAG's overall

21 conformity analysis and plan.

22 And we were asked by the Chairman many times over

23 the last several months could transportation control

24 measures make the difference? And we showed him the

25 numbers aren't there on the passenger vehicle side. There

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234576

1 is a question of what can you do on the heavy-duty side,

2 the freight movement side, to ease congestion, to reduce

3 emissions, to move freight on to railways. And that is

4 the focus of the administration's goods movement plan and

5 goods movement investments, to speed velocity, which

6 happily reduces emissions at the same time.

7 BOARD MEMBER SPERLING: I would degree with what

8 you just said. I would add though that there's another

9 co-benefit and that's greenhouse gas reduction as well.

10 And I appreciate that, in that certainly by 2014 you're

11 not going to have much effect. By 2023 I would suggest

12 there could be some effect. You know, the Sacramento

13 Blueprint Plan has roughly I believe a 10 or 15 percent

14 reduction in VMT as a result of their land-use

15 transportation plan. And I think now with the increased

16 focus on greenhouse gases, there's going to be new

17 initiatives. So while there might not be gains in the

18 next few years, you know, we're in this for the long haul.

19 And, you know, it's kind of like what I think Chairman

20 Sawyer said yesterday about President Kennedy planting a

21 tree.

22 EXECUTIVE OFFICER WITHERSPOON: You're absolutely

23 right. And on Wednesday I attended a Caltrans symposium

24 that was all about greenhouse gas emissions and

25 transportation planning. And so the state is reaching out

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234577

1 to local governments and planning organizations to say,

2 "We need you to do VMT reductions all over again." And

3 the Air Resources Board is getting reengaged because there

4 are CO2 emissions from the land-use patterns and

5 transportation patterns.

6 But, again, for ROG and NOx it almost makes no

7 difference now with how clean the cars are.

8 CHAIRPERSON SAWYER: I would like to move to the

9 testimony phase now, if we can, please.

10 In repetition of the earlier announcement,

11 translation services are available in Spanish for those

12 who need it. Headsets are available at the back of the

13 hearing room.

14 And in Spanish from our translator. Sorry for

15 not warning you.

16 (Thereupon the announcement was translated into

17 Spanish.)

18 CHAIRPERSON SAWYER: Thank you.

19 The first three witnesses are Lieutenant Governor

20 Garamendi, Mayor Pulido, and Council Member Perry.

21 Lieutenant Governor Garamendi.

22 Thank you very much for joining us, Lieutenant

23 Governor.

24 LIEUTENANT GOVERNOR GARAMENDI: Mr. Chairman and

25 members of the Board. Thank you very much for the

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234578

1 opportunity to appear before you and to share with you my

2 thoughts based upon considerable years of experience in

3 this entire area.

4 You have awesome responsibilities that are paired

5 with commensurate authority. Your responsibilities are,

6 in my view, very clear, to protect and improve air quality

7 in the State of California and to reduce greenhouse gases.

8 And your authority permits you to do so now and with

9 haste.

10 Previous actions by this Board have led to

11 significant improvements in California's air quality.

12 However, other actions by the Board over its history are

13 responsible for blocking the production of zero-emission

14 electric vehicles. And your recent delay in air quality

15 standards in the Central Valley will result in more asthma

16 and other health problems.

17 Today you also will face a choice: Significantly

18 strengthening air quality standards and reducing

19 greenhouse gases or delaying strong action that our public

20 and global health demand.

21 I urge you to take strong action immediately to

22 deal with the air quality and greenhouse gases issues here

23 in the State of California.

24 Yesterday as required by AB 32 you discussed the

25 immediate actions necessary to reduce greenhouse gases.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234579

1 And it appears to me that you have failed to achieve much.

2 There would be a serious problem for public health and

3 global health if today's results are also meager.

4 These issues are of utmost importance to every

5 person living in the State of California and, indeed, on

6 this globe. Our position as the major emitter of

7 greenhouse gases in the United States and ranking high in

8 the world, as well as other elements that cause the

9 deterioration of air quality in our state and neighboring

10 areas, must be dealt with. And I urge you to take the

11 strong and decisive actions to address these problems

12 today, not tomorrow or some day in the future.

13 Specifically, today you're dealing with issues of

14 air quality for the State of California, and you have

15 before you two plans: One presented by the South Coast

16 Air Quality Management District and the other your own

17 plan for the state.

18 It's my opinion that you should immediately adopt

19 the South Coast District's plan in total. This plan would

20 position the air basins of southern California to meet the

21 federal EPA standards and save as many as 5,000 lives per

22 year that might otherwise be lost prematurely to the

23 effect of particles in the air.

24 The South Coast Plan not only provides for a

25 larger reduction in particulates. It also provides you

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234580

1 with the flexibility that you will need in the days and

2 months ahead.

3 As implementation proceeds, you will have the

4 ability to fine-tune the proposals to meet reductions in

5 particulate matter for trucks, locomotives, ships, and

6 off-road vehicles of all kinds. And they create some 80

7 percent of the particulate problem here in the South Coast

8 Basin.

9 So you have a chance. Should you adopt the AQMD

10 proposal to adopt a higher standard with greater

11 reductions in particulates and still have the flexibility

12 necessary to fine-tune the total system? If you adopt the

13 statewide plan as presented rather than South Coast plan,

14 you will unlikely meet the federal EPA standards and would

15 further delay implementing measures which can save lives

16 much more immediately. This delay will allow continuing

17 increases in particulate matter in the air and a

18 corresponding increase in the number of suffering children

19 with asthma and other health problems.

20 Therefore, it is my recommendation that you do

21 two things: Adopt the South Coast plan immediately and

22 work aggressively to strengthen the statewide plan.

23 Now, if adoption today is not possible, for some reason

24 that escapes me, an acceptable alternative would be to

25 delay no more than 60 days for the purpose of combining

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234581

1 the two plans, the South Coast and the state plan. The

2 60-day delay may be tolerable. But not achieving the goal

3 of cleaning up the air and making our state healthier as

4 soon as possible is intolerable for the health and the

5 economic future of the state.

6 I also want to point out to you that your efforts

7 to meet AB 32 requirements would be advanced by adopting

8 the South Coast plan as well as strengthening the

9 statewide plan. With this approach, two critical

10 problems, particulates and greenhouse gases, can be

11 addressed simultaneously if you adopt a solid,

12 responsible, strict plan that moves us aggressively

13 towards reducing both particulates and greenhouse gases.

14 Finally, with regard to off-road construction

15 equipment and agricultural equipment, I know there's been

16 much discussion about the impossibility of meeting the

17 statewide plan by 2020. That may be debatable, and it may

18 also be true. But I think you can achieve most of the

19 particulate reduction by very carefully calibrating the

20 goals and the metrics to achieve the maximum

21 implementation with Tier 1, 2, and 3, and apparently as

22 necessary delaying the Tier 4 until a later date.

23 In the future when the new engines become

24 available -- and I suspect they'll be more available if

25 you set a tighter schedule -- Tier 4 should be implemented

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234582

1 as quickly as feasible, forcing the construction and

2 agricultural fleets to turn over more rapidly than they

3 might otherwise. This strategy may achieve the maximum

4 benefit in the early stages with the least disruption and

5 the greatest mitigation of cost.

6 Finally, if you adopt the South Coast plan now

7 and work aggressively to strengthen the state plan, you

8 will leave yourselves the flexibility you will need in the

9 months ahead to fine-tune these proposals and best meet

10 the health, environmental, and economic needs of our

11 state. Most importantly, you will continue California's

12 leadership in addressing two extremely critical problems:

13 Climate change and air quality.

14 I thank you very much for this opportunity to

15 appear before you. I know you have a hard task ahead of

16 you. And I know you're up to protecting the State of

17 California and its citizens. Thank you very much.

18 CHAIRPERSON SAWYER: Thank you for coming to our

19 meeting this morning.

20 LIEUTENANT GOVERNOR GARAMENDI: Thank you.

21 (Applause.)

22 BOARD MEMBER KENNARD: I had a clarification from

23 staff. I wanted to make sure that I understood correctly

24 that the South Coast plan is not before us today, that in

25 fact we will be taking that up later this fall, and that

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234583

1 there were some technical work that still had to be done

2 particularly with the PM2.5.

3 EXECUTIVE OFFICER WITHERSPOON: That is correct,

4 Ms. Kennard. However, what is before you are suggested

5 South Coast modifications to our plan.

6 BOARD MEMBER KENNARD: Thank you.

7 CHAIRPERSON SAWYER: Mayor Pulido.

8 MAYOR PULIDO: Thank you, Mr. Chair and Board

9 members.

10 When you look at all of these numbers and what it

11 all means, I think we have some real problems here. If

12 you look at PM2.5 and you ask yourself of all the people

13 in the United States, what percentage resides here in

14 southern California that face this very high, very

15 dangerous level of toxicity? Unfortunately, that number

16 is 51 percent. Fifty-one percent of all the people in the

17 country that are exposed to this dangerous level of toxic

18 air that we breathe every day live right here in southern

19 California in our air basin.

20 So as we try to figure out what to do about it,

21 we at the air district -- South Coast Air Quality

22 Management District are very frustrated because we know we

23 need to do more. And the how to do more becomes very,

24 very imperative and important to us.

25 In a neighboring city in Orange County -- I

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234584

1 represent the City of Santa Ana. In Anaheim recently the

2 mayor called me and he said, "Miguel, there's a train

3 that's been parked there for 72 hours and it's idling

4 right next to residences. And it's emitting particulate

5 matter and your people are calling complaining, 'What can

6 you do?'"

7 Well, you know, it's a mobile source, even though

8 to me a train that's parked for 72 hours is not very

9 mobile. It's a real problem. So what we've done is we've

10 embarked on a lawsuit. And we're going to appeal this to

11 the Supreme Court if we have to, because we need to do

12 more with railroads and technology that they use because

13 they're in our air basin consistently.

14 You look at the ports. They're going to go 300

15 percent between now and the year 2020. What is that going

16 to mean? Not just our streets and our freeways and our

17 railroads, but to the air that we believe. You know, air

18 is just so fundamental, and maintaining clean air is our

19 mission and we have to work together in order to

20 accomplish that.

21 Now, I want to, you know, thank Board Member

22 Kennard and Chairman Sawyer, because -- you know, we got

23 into a series of meetings and I think they were

24 productive. Our work is not done. But, you know, between

25 SCAG, yourselves and ourselves, we really got into a lot

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234585

1 more detail I believe than we initially envisioned.

2 Nonetheless, we're not there yet, not by a long shot. I

3 know you're, you know, offering some reduction. But, you

4 know, according to everything we can ascertain, we're

5 about 49 tons short of where we need to be.

6 And I just want to tell you that these decisions

7 are tough. But if in any area you can see your way to

8 allowing us to embark in those decisions, we would be

9 willing as the South Coast Air Quality Management District

10 to come up with stricter rules, tougher standards, weather

11 it's, you know, develop in-use fleet rules for private or

12 public fleets, whether it's working more aggressively at

13 the ports to -- you know, not to do the study on whether

14 or not the fuel they use is going to impact us -- I can

15 tell you it impacts us -- to work immediately with them to

16 require that as ships come into this air basin, they begin

17 to burn cleaner fuel.

18 I was, you know, honored to recently be able to

19 talk to the U.S. Ambassador -- or the Republic -- Chinese

20 Ambassador to the U.S. And when I told him about what's

21 going on here in southern California, he says, "Look, we'd

22 be happy to work with you to immediately begin to try to

23 burn cleaner fuel in all the ships that come from China."

24 And that's the type of discussion we need to engage in

25 immediately. Because if not -- you know, we know people

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234586

1 are dying in this air basin. We all know somebody that

2 has cancer. And whereas we can't say, well, it was caused

3 by this or by that, we can show you that right along the

4 freeways, right along the major routes of transit and

5 transport the rates are much higher. And it's not just in

6 one area. We can go right down through the entire air

7 basin where you can look at the data, we can do the

8 correlation, and it's not a pretty picture.

9 So, you know, please allow us to work with you. Please

10 allow us to continue to meet, to continue to try to figure

11 this out, because it is a daunting task but it's a task

12 that I believe working together we can address. And I

13 believe that we're different from San Joaquin, we're

14 different from San Diego or the Bay Area. Here in

15 southern California, we just have problems that are more

16 severe, and we need I believe approaches that are more

17 aggressive.

18 Thank you for listening.

19 CHAIRPERSON SAWYER: Thank you very much, Mayor.

20 (Applause.)

21 CHAIRPERSON SAWYER: I would like to ask Senator

22 Cedillo if he would like to talk to us now. Thank you.

23 SENATOR CEDILLO: Good morning. I want to be

24 really simple and attach myself to the comments of the

25 Mayor and of the Lieutenant Governor.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234587

1 I don't need to talk to you about the science or

2 the challenges that confronts us. You're well aware of

3 those. I simply want to talk to you about the process of

4 making decisions and choices. The decisions and the

5 choices that we're asking to do are challenge, daunting.

6 A lot of complexity to them, very difficult. A lot of

7 things come into balance, a lot of matters need to be

8 weighed. But I would ask you and argue that for us the

9 most important decision is really, how do we conduct and

10 make decisions that are consistent with our ethics, with

11 our morals? What is the bottom line? What is the golden

12 rule here? At the end of the day, what is the result of

13 the decisions we make, and do they better our community?

14 And I would suggest to you, do they better our community?

15 Not just in those very vital business interests, because

16 we have to be thoughtful about that. We have to be

17 considerate. I read the articles this morning. We must

18 be balanced. But that balance really must be on, what is

19 in the best interests of the people? How do we serve

20 their health, their quality of life, what is it that

21 results at the end of the day?

22 As Mayor Pulido said, we know that the quality of

23 life is impacted and impaired in certain environments,

24 certain circumstances. You don't need to be told about

25 the demographics of the region. What you do have here, a

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234588

1 district that's coming to you saying, "Do more and enable

2 us to do more." And that's compelling. And I have --

3 with my colleagues everyday as we are at the point in

4 Sacramento of making tough decisions, on homelessness, on

5 whether or not immigrants can drive. And, by the way, if

6 we would let immigrants drive, I could suggest to you that

7 our air would be cleaner. More -- up to 20 percent of the

8 pollution is caused because immigrants have to drive older

9 cars, the most polluting. If we let them drive legally,

10 they would buy new cars and the most efficient cars. And

11 at least 20 percent of our air would be cleaner. I'm not

12 a scientist but it's kind of simple math if you think

13 about it. But that's a different issue. I'm not here --

14 I'm deviating. I'm sorry.

15 But the point is this, is that we have -- you

16 have tough decisions to make, and I respect that. But let

17 me say to you and suggest to you that if you make the

18 decisions at the end of the day that are in the best

19 interests of the common person, the Californian who's come

20 here, who simply is seeking a better life and just simply

21 wants to work and have a better life and a better quality

22 of life -- at the end of the day if your decision take us

23 there, it's a decision you'll feel better about and it's a

24 decision that will be better for the people of California,

25 including all the interests that you have to weigh.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234589

1 And I thank you for your time, your

2 consideration, your courage, and your leadership. Thank

3 you so much.

4 CHAIRPERSON SAWYER: Thank you very much.

5 (Applause.)

6 CHAIRPERSON SAWYER: Council Member Perry. And

7 then we'll have Dr. Burke, Supervisor Ovitt, and Mark

8 Pisano.

9 MS. HASHMI: Good morning. My name's Kiran

10 Hashmi. I'm here on behalf of Councilwoman Jan Perry.

11 She had to leave to Chair the Los Angeles City Council

12 this morning in downtown L.A. at 10 a.m.

13 Councilwoman is the Chair of the Energy

14 Environment Committee for the City of Los Angeles. She's

15 also a Governing Board Member of the South Coast Air

16 Quality Management District. I will now read her

17 statement.

18 "I'm here today to strongly urge the California

19 Air Resources Board to support the 2007 Air Quality

20 Management Plan to strengthen the State Strategy and

21 commit to additional emission reductions from mobile

22 sources. The body of evidences is very clear that the

23 widespread respiratory illness in this region is traceable

24 to emissions from mobile sources.

25 "Research has already shown that fine particulate

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234590

1 matter in the South Coast Basin is responsible for

2 thousands of deaths and hospitalizations every year due to

3 respiratory illnesses. Our residents are exposed to a

4 high percentage of damaging levels of particulate

5 pollution.

6 "The State Implementation Plan is our best

7 opportunity to support a new kind of urban infrastructure.

8 It is an opportunity to make clear-cut progress towards a

9 cleaner Los Angeles.

10 "Your mobile source strategy is a policy of real

11 power. It will be the strength behind our attainment

12 drive in the South Coast for the next five to seven years.

13 It is crucial that you include more stringent control

14 measures for mobile source pollution, as it is a major

15 offender when it comes to hazardous air pollution.

16 "The health of our residents should be at the

17 foremost of our considerations. This is why I urge you to

18 in longer delay the adoption of the 2007 AQMP and that you

19 tighten your State Strategy to attain federal cleaner

20 standards. We ask that you reject half measures and take

21 action that sends a clear message that you are serious

22 about not allowing mobile sources to bring us to a

23 standstill in our fight against air pollution. Send a

24 message that your Board deserves its reputation as a clean

25 air pathfinder.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234591

1 "With your lead we can reach the federal

2 health-based clean-air standard, clearly demonstrating

3 our commitment for a clean and healthier future.

4 "Thank you."

5 CHAIRPERSON SAWYER: Thank you.

6 (Applause.)

7 CHAIRPERSON SAWYER: Dr. Burke.

8 And I would like to begin to enforce the

9 three-minute rule because we have a very large number of

10 speakers today.

11 Thank you, Dr. Burke.

12 DR. BURKE: Thank you. And I will be as brief as

13 possible, because I think that Mayor Pulido and the

14 Lieutenant Governor covered a great deal of the ground

15 that I wanted to cover.

16 You know, we have two actions we'd like to call

17 on you to do, if you would. Obviously one is to add the

18 49 additional tons after you take off the 14 of NOx

19 reduction to your State Mobile Source Strategy on a

20 schedule to achieve these reductions by 2014.

21 Alternately, and only if you choose to take that

22 action, we ask that you delay your approval of the State

23 Mobile Source Strategy until you conduct a rescheduled

24 hearing of the South Coast AQMP. You will be able to give

25 a fair consideration to the California air basin with the

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234592

1 most urgent public health problem, and you can avoid what

2 might be to the public a predetermined perception of the

3 AQMP hearing this fall, handicapped by a predetermined

4 mobile source strategy.

5 I think that -- I was almost amazed to hear that

6 the staff of CARB thinks that our suggestions are just an

7 acceleration of the CARB staff rules. I think that if you

8 take the time, have our AQMP hearing -- EPA says that you

9 don't need to adopt this till August so you won't put San

10 Joaquin in jeopardy -- I think you'll find that we have

11 some suggestions that you might find very beneficial to

12 moving the air quality improvement in southern California.

13 Thank you.

14 CHAIRPERSON SAWYER: Thank you.

15 (Applause.)

16 CHAIRPERSON SAWYER: Supervisor Ovitt.

17 SUPERVISOR OVITT: Thank you, Chairman Sawyer and

18 Board. It's indeed a pleasure to be here today.

19 I come from San Bernardino County, and we have

20 really some of the worst air that is in the South Coast

21 Basin, is what we live in each and every day. I've lived

22 there for 60 years, so I have the accumulation of that

23 that I breathe each and every day.

24 I'm also -- as well as being a member of the

25 South Coast Air Quality Management District Board, I'm

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234593

1 also the President of SCAG for this particulate year. And

2 I come to, as a representative of both of those

3 organizations and of course of my San Bernardino County,

4 to let you know how important this particular issue is to

5 us.

6 We live and breathe this air each and every day.

7 It's not just a number on a pie chart, number on a slide.

8 But it in fact is the quality of life that we are

9 subjected to as the result of these emissions.

10 My daughter is now in college. But when she was

11 in elementary school, the freeway was right next door to

12 the elementary school and to the fields outside where they

13 played. So we do live it, we breathe it. We understand

14 the health impacts.

15 As a member of SCAG, let me tell you that the

16 concern of course is that not only is this -- are these

17 impacts in health, but these are also impacts in regards

18 to non-attainment. And non-attainment could mean federal

19 sanctions, which might mean that we would lose out on

20 federal dollars in regards to the needs that we have for

21 transportation and other issues in the southern California

22 region. And let me tell you -- and I'm sure you

23 understand -- because of the goods movement, we have

24 tremendous transportation issues and congestion issues

25 that we have to overcome. Certainly, these exacerbate the

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234594

1 issue of air quality and at the same time they exacerbate

2 the issues of quality of life and commuting in this fine

3 region that we live.

4 In addition to that, certainly we do have a

5 tremendous exposure of course to the PM2.5 and that

6 affects us each and everyday.

7 For the first time, I might add, there has been a

8 real marriage between the South Coast Air Quality

9 Management District and the Southern California

10 Association of Governments. We don't always degree on

11 issues. We are standing shoulder to shoulder on this

12 issue. We are here today as a member of SCAG -- as the

13 President of SCAG, I am here to let you know that we stand

14 shoulder to shoulder. We would ask that you would look at

15 and consider both the 2007 AQMP plan as well as the

16 Strategy together. We would encourage you to adopt the

17 South Coast Air Quality Management District plan that has

18 been put forward.

19 We have health risks that we do not care to

20 endure any longer. We would ask that you keep our health

21 in mind as you make this very important decision. We know

22 it's tough and it does require some courage on your part.

23 But we know you stand ready for the task.

24 And we thank you very much for your time.

25 CHAIRPERSON SAWYER: Thank you.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234595

1 (Applause.)

2 CHAIRPERSON SAWYER: Mr. Pisano. And then we'll

3 have Dennis Yates, Council Member Aguilar, and Council

4 Member Messina.

5 MR. PISANO: Mr. Chairman and members of the

6 Board. Thank you for providing this region an opportunity

7 to appear before you to present our plan. And also thank

8 you for the cooperative effort that you've demonstrated in

9 working as Board members and staff in the three-agency

10 process to address the difficult issues in front of you.

11 With respect to the difficulty of the issues, let

12 me just note, by way of history, I have participated as an

13 executive member on every air plan prepared in our basin,

14 including, I might add, as a member of the EPA staff that

15 prepared the 1975 plan that was promulgated by the

16 administrator. I have never in all my career seen a plan

17 that's more difficult and more important to the residents

18 of this region.

19 The health impacts that your Board has -- studies

20 that your Board has brought forward as well as the

21 research of our local universities have indicated that the

22 pollutant that we're most concerned about in these plans

23 is for sure harmful, detrimental to the health of our

24 region in a way that no other plan has really

25 demonstrated. That awareness has caused our region, its

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234596

1 elected officials, to be more than sensitive and more than

2 supportive of immediate and absolute controls.

3 In the three-agency meeting at the staff level,

4 it was noted the difficulty of reducing this pollutant,

5 both in the years 2014 and in the year 2023. At that

6 meeting I noted to the staffs that this was going to

7 require extraordinary leadership in order for us to deal

8 with the pollutant that needs to be controlled, that

9 mainly has been uncontrolled for many decades, to reduce

10 these health impacts.

11 Upon reporting to my board, they said both the

12 indicated shortfall in pollutants both for the -- both

13 time periods, they noted to me, "Let's put on the table

14 what we can to meet that leadership challenge."

15 Let me just note the measures we put forward are

16 our best effort to do so. Those measures are not in

17 substitute for your measures. We need your measures and

18 we need more, if you can see the tonnage requirements.

19 Therefore, our measures should be no reason for you to --

20 our reasons not being fully developed should be no reason

21 for you to delay your action today.

22 I wholeheartedly and my board wholeheartedly

23 supports the request of Dr. Burke that the additional tons

24 be added to your plan today and that we work out the

25 remaining issues when our plan comes forward to you for

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234597

1 deliberations.

2 We thank you for your consideration. And, Dr.

3 Sawyer, the best thing that you can do to help our

4 measures is to backstop them.

5 Thank you.

6 CHAIRPERSON SAWYER: Thank you very much.

7 (Applause.)

8 CHAIRPERSON SAWYER: Mr. Yates.

9 MR. YATES: Thank you, Mr. Chairman, Board

10 members. My name is Dennis Yates. I'm the Mayor of the

11 City of Chino. I'm a board member of the South Coast Air

12 Quality Management District. I represent the cities in

13 San Bernardino County. I also sit on the Admin Committee,

14 the Technology Committee, the Refinery Committee, and I

15 Chair the Stationary Committee.

16 I am very concerned that you are deciding the

17 state's mobile source control path without having the 2007

18 AQMP for South Coast before you at the same public

19 hearing. A weak mobile source plan could do more harm

20 than good. This could also lead to imposing an additional

21 cleanup burden on already strictly controlled stationary

22 sources.

23 Over many years your Board, our air district, and

24 our many stakeholders have collaborated to build a long

25 and successful track record. Together, we've set world

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234598

1 realized technology, forcing standards, and achieved

2 dramatic results; while our goal of healthful air

3 continues to allude us.

4 Here in 2007 we cannot wait more decades to reach

5 a public health goal that dictates life or death for

6 thousands of people each year. That is close to me. Five

7 days ago my family was informed our 12-year-old niece who

8 lives in Van Nuys is just diagnosed with Stage 4 Hodgkin's

9 lymphoma cancer in her lungs.

10 That's why we urgently need this mobile source

11 strategy to step up and flex more muscle. The South Coast

12 Board continues to believe very strongly that financial

13 responsibility for air pollution should rest with the

14 sources that create the pollution.

15 The South Coast supplementary mobile source

16 measures are intended to reemphasize two principles: Push

17 technology; and polluters must bear their fair share of

18 the cleanup effort. Our proposed control measures are

19 intended to supplement CARB's strategy. Our agencies are

20 in overall agreement on where we should aim, which is

21 toward cleaner fleets.

22 Where we differ is how clean and how quickly.

23 For the past three decades in the South Coast, or more

24 than 80 days each year, millions of South Coast residents

25 have been exposed to levels of particulate and smog that

PETERS SHORTHAND REPORTING CORPORATION (916) 362-234599

1 are way over federal standards.

2 As this doesn't include their exposure to air

3 toxics, this health emergency is what drives our sense of

4 urgency.

5 The State Mobile Source Strategy is a powerful

6 opportunity for leapfrogging instead of taking baby steps.

7 When we look at the NOx reductions we need to

8 meet the national ozone standard, it's almost

9 jaw-dropping. We must cut NOx 76 percent, or we trigger

10 automatic federal sanctions.

11 The clean up task is huge. So above and beyond

12 everything on the books, there is no margin for errors.

13 Yet, at the same time, not achieving our goal is

14 unthinkable. Together, we need to get down to hard and

15 firm actions at a stepped-up pace so that our suggested

16 supplemental measures call for firmer reduction targets at

17 a stiffened pace.

18 South Coast faces a risky tactical marathon

19 towards clean air. If we are limited to a slow start here

20 at the outset, we could fail to finish our difficult run

21 towards federal standards.

22 We ask you to work in partnership with us to

23 avoid that mistake and include stronger measures in your

24 State Strategy.

25 Thank you, Mr. Chairman.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345100

1 CHAIRPERSON SAWYER: Thank you.

2 Councilmember Aguilar.

3 COUNCILMEMBER AGUILAR: Good afternoon. My name

4 is Joe Aguilar, recently elected to the City Council in

5 the city of Commerce.

6 The city of Commerce is surrounded by freeways

7 and railroad yards. We're probably one of the most

8 polluted areas.

9 And having worked in the park and recreation

10 field -- I started about 42 years ago. And I remember the

11 kids coming out to the parks and just playing pick-up

12 games, softball games. You name it, the kids were out on

13 the field. As the years went on, I saw less and less of

14 these kids coming out and just having pick-up games. Now

15 I'm wondering, well, maybe it's the air that they're

16 breathing. We see individuals spending more time inside

17 watching TV, playing inside of our facilities rather than

18 outside.

19 I think if all of you look at it, you know what I

20 am saying. Our little kids are not out there on the

21 fields. And why? Probably because they can't breathe

22 properly. I remember at one time you would see

23 individuals take a deep breath of air and actually feel

24 good. You try that now, and you start choking.

25 So I think we need stringent rules. We need you

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345101

1 and all of the other organizations that are doing their

2 best to clean up our air. And we need to work as a team.

3 And the cities will do everything in their power to get

4 this message across to everybody. Thank you very much.

5 CHAIRPERSON SAWYER: Thank you.

6 Councilmember Messina, and then we'll have Mayor

7 Cacciotti, Tonia Reyes Uranga, and Mary Justice.

8 COUNCILMEMBER MESSINA: Good morning, Chairman

9 Sawyer and members of the Board. I am here on behalf of

10 SCAG. I am a member of the Regional Council. I have been

11 an elected official in the city of Alhambra for over

12 20 years. Twelve years of those were on the City Council,

13 and the last eight years I served as a School Board member

14 for our school district.

15 I'm here to address the health crisis that we are

16 all realizing. And it's interesting, because 25 years

17 ago, I started with this very same message. Because we

18 have in our community the lack of a completed freeway that

19 literally dumps right in front of one of our elementary

20 schools. And we took our message to Washington. We took

21 our message to Sacramento. And now in 2007, it's finally

22 being listened to.

23 We have an elementary school, Fremont, that I

24 said where the 710, the trucks come off. It's not just

25 cars. It's the trucks, the total 710 traffic coming into

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345102

1 that particular area.

2 I have a letter here from our superintendent to

3 testify as to the quality of the air that our students

4 have been realizing. We have approximately 1100 students

5 who suffer from asthma. Seven-hundred of those students

6 are identified as severe to moderate allergic that also

7 affect their physical condition. We have tragically seen

8 three students succumb to cardiac respiratory illness

9 these last few years. In five years, we buried three

10 fifth graders. I went to all three of those funerals.

11 Those kids play on the playground where all of this air

12 pollution from the freeway comes onto our streets.

13 I have a letter here from Dr. Steven Wong who has

14 been working with our school district for the past

15 ten years. He's a renowned doctor dealing with asthma and

16 respiratory problems. And his statement -- I won't read

17 the whole letter. He says, "As a physician and parent, I

18 would strongly recommend that all efforts be made to

19 relieve the amount of mobile air pollution on the streets

20 and highways. Hopefully with these changes, we can help

21 our children to live healthier lives."

22 I can't tell you during these past eight years

23 being on the School Board how stressful it is for parents

24 to send their kids to school every day and not know are

25 they going to come home.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345103

1 Unless you've lost a child, you cannot appreciate

2 that kind of fear. I've lost a child. I know what that

3 trauma is like.

4 So I'm begging you to please adopt the South

5 Coast Air Quality's mobile sources. Because it is, as

6 Supervisor Case said, we can't afford to put this off any

7 longer. I beg of you, please, to support that. Thank

8 you.

9 I have letters also that our students from

10 Fremont School wrote in 2000 to Governor Davis. And I

11 would like to read one comment where the student says, "I

12 walk to school. I cough so much because of the air."

13 I'd be happy to turn these letters into you.

14 These come from the kids themselves, not from us.

15 Thank you.

16 CHAIRPERSON SAWYER: Thank you.

17 Mayor Cacciotti.

18 MAYOR CACCIOTTI: Good morning, CARB members.

19 Michael Cacciotti, Mayor of South Pasadena, one of the

20 environmentally leading cities in the San Gabrielle Valley

21 with Ms. Messina.

22 Want to thank CARB for your proposed State

23 Strategy for California today. It's implementation plan

24 is a move the right direction.

25 However, many of the mayors and leaders as you've

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345104

1 heard already in the San Gabrielle Valley feel CARB should

2 go a little bit further today to strengthen their plan to

3 achieve these federal standards.

4 Ambient air quality, we need to attain it now,

5 not later. Here's the reasons why: The health of our

6 planet, the slow down of global warming, the health of our

7 families. As we know with the USC school, also UCLA, the

8 recent studies about effects on grandparents on elderly,

9 little kids, and especially now in women over 35, it gets

10 in your arteries and actually slows it down.

11 The health of our pets -- people talk so much

12 about the health of people. What about our pets? If you

13 talk to any veterinarian -- I brought my dogs in a few

14 weeks ago -- they see even more of a severe impact on

15 pets. I've talked to veterinarians who actually performed

16 an autopsy and looked at the lungs of pets and what it's

17 done to the pets.

18 Our cities are right now actually having to

19 implement measures ourselves. Just two months ago, the

20 City of South Pasadena brought forth a low-emission

21 vehicle policy for the entire San Gabrielle portion of Los

22 Angeles County. That's 30 cities, unincorporated portions

23 of Los Angeles County, and 385 square miles. Our

24 low-emission vehicle policy, which essentially mandates

25 the preference that every new vehicle you purchase should

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345105

1 be low-emission clean air vehicles, was adopted

2 unanimously by the 31 cities in the San Gabrielle Valley.

3 Our citizens, we can no longer wait for the

4 federal government or CARB to act. We realize that

5 through energy diversity and a promotion of clean air

6 low-emission vehicles we can reduce our dependence on

7 foreign oil. And as a result of this specifically what

8 can happen? It improves our national defense, why, our

9 national security, because we're no longer spending 250 to

10 $300 billion a year purchasing foreign oil.

11 It improves their economic stability, because we

12 can take that 250 to $300 billion looking at alternative

13 type of fuels, alternative type of vehicles, clean air,

14 compressed natural gas, hybrids, the next generation of

15 plug-in hybrids, as you know, electric hydrogen fuel

16 cells, we can take that $250 billion, invest it in local

17 businesses, local economy.

18 As I said before, also enhance the health of our

19 citizens, people, and animals, and slow down the

20 escalation global warming.

21 I just returned about a month ago from my second

22 trip to China this past year. First time I went, the

23 environment, alternative fuel vehicles, emissions was not

24 on their radar. Last time -- if I can finish, wrap it up.

25 CHAIRPERSON SAWYER: Yes, please

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345106

1 MAYOR CACCIOTTI: Yes, sir.

2 On the last trip, spoke to about seven or eight

3 different cities. And the mayor was removed from

4 Shanghai, but I spoke to the Communist party secretary.

5 Gave him our low-emission vehicle policy. There's been

6 180 degree turn in China. There's Sino Japanese, Sino

7 Russian, Sino German, multi-billion-dollar research joint

8 ventures studying alternative fuel vehicles, low-emission

9 vehicles, clean area vehicles. They're going to catch us

10 and surpass us if we don't do something soon.

11 Thank you so much for your time.

12 CHAIRPERSON SAWYER: Thank you.

13 Ms. Reyes Uranga.

14 MS. REYES URANGA: My name is Tonia Reyes Uranga.

15 I represent the eastern cities in L.A. County on the South

16 Coast Air Quality Management District. But I also serve

17 as a Council Member in the City of Long Beach which

18 operates the Port of Long Beach.

19 And I have to say I've never thought I would see

20 the day where the port is proposing more aggressive

21 measures than the State Board. It's incredible.

22 And today, I'm here to speak in support of your

23 inclusion of the South Coast AQMD's recommended measures

24 in your mobile source strategy, especially those related

25 to goods movement and freight operations. This would

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345107

1 include expedited cleanup of heavy-duty on-road and

2 port-related trucks, cargo handling equipment,

3 locomotives, airport ground support equipment, transport

4 refrigeration units and diesel fuels.

5 I understand that these measures would demand

6 strong regulatory actions. But I believe that our

7 agencies and legislative partners can work together to

8 balance these control actions with innovative funding

9 mechanisms which include practical incentives such as tax

10 credits, high volume buy-down programs, and compliance

11 streamlining that can address potential cases of economic

12 hardship.

13 Several regions in California face common

14 planning challenges as we try to reconcile growing goods

15 movement operations alongside major metropolitan areas.

16 But the route you choose will make a critical difference

17 in the health impacts experienced by residents living in

18 environmental justice areas. For them, your decision

19 represents nothing less than fate by public policy.

20 The ports of Long Beach and Los Angeles, for

21 example, play tremendous economic roles in our region, our

22 state, and our national economy and shipping gate ways and

23 creators of jobs. But at the same time, ports and freight

24 yards have serious air pollution impacts which adversely

25 affect large regional populations. We cannot ask

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345108

1 community members to wait patiently for while shipping

2 projects mushroom around them.

3 Emission cuts will demand significant resources,

4 and South Coast is already marshaling investment dollars

5 from both the public and private sectors. We have already

6 begun an ambitious new cleanup journey to help carry out

7 last year's San Pedro Bay Clean Air Action Plan. A less

8 than forceful State Strategy has the power to undercut the

9 potential gains of our port cleanup plan. And I want to

10 say that again. A less than forceful State Strategy has

11 the power to undercut the potential gains of our port

12 cleanup plan.

13 In contrast, leveraging the strength of a

14 forceful State Plan we can, for example, achieve better

15 economies of scale, as well as more consistent technical

16 practices. We can identify common barriers to progress

17 and issues of concern. And together, we can seek

18 practical and innovative solutions. We're well aware some

19 emission control measures can be relatively difficult.

20 However, those are clearable hurdles, not permanent road

21 blocks.

22 That is why we're asking your State Mobile Source

23 component to send a consistent unwavering message that can

24 be heard by technology investors, infrastructure

25 stakeholders, and most of all, the public that you're

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345109

1 serious about meeting health standards and won't ask

2 Southern Californians to accept more years of chronic

3 bronchitis, cancer, heart and lung disease than we've

4 already suffered.

5 I ask that you fully exercise your power of

6 leadership. Please approve a mobile source strategy

7 worthy of your abilities, one that shows you've heard our

8 voices today. Thank you.

9 CHAIRPERSON SAWYER: Thank you.

10 Ms. Justice, and then we will taking a ten-minute

11 break for our court reporter.

12 MS. JUSTICE: Thank you for hearing me speak.

13 PM10 comes from clay in the soil as well as

14 trucks. And it effects nine cities in the Coachella

15 Valley. PM2.5 from habitat sources should be included as

16 part of the total mobile source PM2.5 affecting people's

17 health. Correlations with NOx, et cetera, are not

18 adequate in some cases, because PM2.5 and 10 are not

19 measured coming off of these habitat lands, at least in

20 the western Coachella Valley in Riverside County.

21 PM2.5 requirements do not apply to these habitat

22 lands and do not protect the nine cities southeast of

23 them.

24 Now, in Riverside County's western Coachella

25 Valley, there is a new $1.1 million acre habitat plan

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345110

1 being considered which has thousands of acres of so-called

2 blow sand. The plan depends on strong winds to carry blow

3 sand, et cetera, to three preserves. These winds also

4 transport huge amounts of PM2.5 and PM10 200 to 400 feet

5 up in the air and over any kind of sand fences to the

6 populous southeast of the thousands of acres of blow sand

7 areas.

8 Soil samples measured by soils engineers and the

9 Army Corps of Engineers are up to 67 percent silt, which

10 is PM10, and up to 18 percent clay, which is PM2.5. If PM

11 2.5 were measured coming off that habitat, you could

12 regulate how much additional acres of blow sand so-called

13 are preserved versus lands that are developed.

14 The proponents of the habitat plan explain away

15 this excessive PM2.5 and PM10 as being made by humans

16 disturbing the clay and silt, which they say is solidified

17 and principally moved by water. An Army Corps of

18 Engineers' report says 90 percent of the PM2.5 and 10 are

19 borne by wind, not water. The new habitat plan would

20 result in approximately 80 percent of the western

21 Coachella Valley being controlled by various environmental

22 purposes, all sources, private and agencies. The fact is

23 obscured in their EIR for this habitat plan. Thank you.

24 CHAIRPERSON SAWYER: Thank you very much. And

25 thank you for reminding us that PM2.5 is directly emitted

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345111

1 and not entirely a NOx issue.

2 We will take a break at this time for ten

3 minutes. And when we return, the first three witnesses

4 will be Jane Carney, Fong Lee, and Sid Tyler.

5 (Thereupon a recess was taken.)

6 CHAIRPERSON SAWYER: We will resume hearing from

7 our witnesses at this time. And I'd like to indicate that

8 we have probably about five or more hours of testimony

9 before us. So I will apply the three-minute rule very

10 strictly. We will be of course hearing everybody who

11 wants to speak to us. We will be receiving your testimony

12 in the order that you have handed in your cards. And we

13 will now resume with Ms. Carney.

14 MS. CARNEY: Thank you very much, Dr. Sawyer and

15 members of the Board. My name is Jane Carney. I'm in my

16 second term as Senate Rules Committee appointee to the

17 South Coast Air Quality Management District Board, and I'm

18 also a resident of the city of Riverside. For 25 years, I

19 lived within one mile of the famous or infamous Rubidoux

20 monitoring station. So we know about air quality

21 problems.

22 You know, where I live, we've never achieved the

23 PM10 standard. So when I hear staff's presentation that

24 we will, in fact, achieve PM2.5 on time, I hope that's

25 right. But I feel very strongly that we need to take all

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345112

1 the steps necessary to ensure that actually happens. AQMD

2 staff disagrees with that assessment and thinks additional

3 measures need to be taken in order to reach PM2.5

4 attainment.

5 I'd also like to just explain that while part of

6 my passion about this subject comes from my own personal

7 experience, part of the passion also comes from you all.

8 You are the ones who conducted the children's health

9 study. It was from your studies that we learned about the

10 deficit in the growth in lung function in children who are

11 exposed to this pollution. It was from your studies that

12 we learned that people in this basin, of all the people in

13 the state of California, 82 percent of the people exposed

14 to excessive levels of PM 2.5 are in this basin.

15 It is from your analysis we learned that this

16 results in approximately 5400 premature deaths per year.

17 So part of our passion really comes from what you tell us

18 the effects of this air pollution is.

19 And then I'd also like to mention, because we

20 also conducted public hearings and listen to people talk,

21 that a fair amount of our passion comes from what people

22 come and tell us. A major reason we got so involved with

23 locomotive emissions is because people would come from the

24 city of Commerce, a Council member from the city of

25 Commerce was here this morning, residents would come, and

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345113

1 in the public comment section of our agenda, they would

2 come and tell us about what they perceived as the air

3 pollution problems in their neighborhoods. And much of it

4 was very true.

5 And that inspired us to take on some very tough

6 battles and take some very aggressive stances. And you

7 probably feel that sometimes we might almost become

8 strident. If we do, I apologize. But we are inspired by

9 this, because of our own experience, by what you tell us

10 and by what the public tells us.

11 I think our staffs have developed complex and

12 far-reaching control proposals. But there is a difference

13 between what your staff would like to see you adopt and

14 what we would like to see you adopt. We would like you to

15 adopt additional measures that would advance the timing

16 and would in some cases make the controls more stringent.

17 And I hope you will seriously look at that.

18 We're obviously very concerned about the size of

19 the black box. A 241 ton on the per day black box doesn't

20 give one a lot hope for actual attainment on a timely

21 basis.

22 And you know, we get caught up in this. EPA sets

23 these standards and sets the attainment dates. And that's

24 what we have to work for. And that's true. But the

25 health care issues are now. They're now. And so the

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345114

1 longer things are delayed, the longer those health care

2 issues go on.

3 So I would just encourage you to look seriously

4 at the additional proposals that we've put forward. We

5 only put them forward because we're so concerned. As you

6 see from your staff report, the mobile sources are -- huge

7 portion, 95 percent of the emission reductions, have to

8 come from mobile sources. And so the ball is really in

9 your court. The health of people in this basin is in your

10 hands. And I hope they'll look seriously at the

11 suggestions that we've made.

12 Thank you very much.

13 CHAIRPERSON SAWYER: Thank you very much.

14 Phong Ly.

15 MR. LY: Thank you, Chairman Sawyer and esteemed

16 members of the Board.

17 I stand here as a representative for Assembly

18 Member Mike Eng speaking in support of the South Coast Air

19 Quality Management District 2007 Air Quality Management

20 Plan.

21 And I believe that you have a copy of the support

22 letter from Assembly Member Eng as well.

23 The California Air Resources Board needs to act

24 immediately to address the growing health and

25 environmental risk in an area which contains some of the

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345115

1 most polluted air in the nation.

2 CARB's own studies reveal that air pollution in

3 the South Coast air basin results in 5,400 premature

4 deaths, 2400 hospitalizations, and 980,000 lost work days

5 every year.

6 Considering that the population for L.A. County

7 will be increasing by two to three million people in the

8 next 25 years, Assembly Member Eng feels it is important

9 to adopt stricter rules for mobile air pollution resources

10 in order to accommodate for future population pressures on

11 our community's resources.

12 As the state faces stricter federal guidelines

13 for clean air, the 8-hour ozone and the PM2.5 standards,

14 the California Air Resources Board need to act now to

15 ensure that we can meet these federal goals for the

16 betterment of our community.

17 We sincerely urge you to adopt the AQMP. Thank

18 you very much for your support.

19 CHAIRPERSON SAWYER: Thank you.

20 Sid Tyler, and then Warren Furutani, Sam Hall,

21 and Jennifer Zivkovic. Mr. Tyler. Mr. Furutani.

22 MR. FURUTANI: Mr. Chairman, members of the

23 Board, thank you very much for this opportunity to speak

24 before your important panel. My name is Warren Furutani.

25 I've been on the Los Angeles Board of Education for eight

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345116

1 years now. Currently, I'm in my third term at the Los

2 Angeles Community College Board, both of which are the

3 largest bodies in their respective areas in the state of

4 California.

5 While on the Board of Education, I represented

6 the 7th District that's dissected by the 110 freeway and

7 bordered on its eastern boundary by the 710 freeway,

8 including San Pedro, Wilmington, Carson, and other

9 communities as you go north, including what's infamously

10 called the Harbor Gateway, the very narrow band of land

11 that is used to connect the port with downtown Los

12 Angeles.

13 On the Community College Board, I represent the

14 whole district as a whole, but needless to say our nine

15 campuses are spread out throughout the Los Angeles basin,

16 including Harbor College, which is in the same area that I

17 just explained and shared with you.

18 I would be presumptuous to assume I could give

19 you the scientific background or give you the number of

20 particulates or the percentages things that I know that

21 you've studied and looked at.

22 And let me just briefly say, I appreciate the

23 fact you're willing to sit for eight hours to hear public

24 testimony. All of us that are elected officials that

25 serve on Boards have done that in the past, and we know

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345117

1 it's difficult to say awake. We know it's difficult to

2 stay focused. And I do appreciate the energy that it

3 takes for you to go through this process.

4 Also, I wouldn't want to be one in front of you

5 that tries to tell you that there's all these different

6 things that are involved other than situations we find

7 ourselves in government oftentimes. I don't care at the

8 highest level in federal government, at the lowest level

9 in terms of local government, oftentimes we find ourselves

10 in what we call a quagmire. The federal quagmire we are

11 well aware of in terms of the nation and what's going on,

12 trying to decide how to end a problem, solve a problem,

13 when to bring people back, and when to stop the dying.

14 In this situation, we're juxtaposed around a very

15 critical economic issue when you talk about transfer of

16 goods and services. And on the other hand, we're talking

17 about the health of people that live in those areas.

18 Again, numbers aside, percentages aside, I only

19 use one fundamental basis to determine the importance of

20 what you're confronting here today. And that's the

21 coughing of a child in Dominguez Elementary School in the

22 Carson/Long Beach area. Or in being on an airplane

23 landing from Sacramento on Monday, I think the second time

24 in my life we landed over the ocean rather than in the

25 opposite direction, from west to east rather than east to

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345118

1 west.

2 If you live in the area where I live down in the

3 Harbor Gateway, you know that if the prevailing wind is

4 going in the opposite direction, when you get home you're

5 going to have the prevailing smells that are going to come

6 wafting across your area based on the port ships, based

7 upon the trains that are moving the goods, and based upon

8 the trucks, all of which are critical, all of which are

9 important. But doggone it, all science aside, all of the

10 other things aside, when it gets down to it, it's a

11 fundamental human issue, which is people's quality of

12 life. That's what you're dealing with. And that's what

13 you're confronted with.

14 I know as you try to sort through your quagmire

15 relative to trying to figure out how to do it, when to do

16 it, how best to do it, and at what expense to do it, I

17 think clearly you need to go down and have your hearing

18 right there at one of those elementary schools in east

19 Long Beach or west Long Beach, one of the schools that are

20 in the L.A. Unified or Harbor Community College. And you

21 know it. You've all been there. You've all seen it

22 yourself. It is getting so bad. It's getting ridiculous.

23 I think at a certain point we've just got to stop

24 and say we understand all of the science. We understand

25 all of the political juxtapositions of issues. But you've

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345119

1 got to make a decision. A decision I think fundamentally

2 has to focus on. One clear simple issue, and that's the

3 quality of life.

4 And again, if you look at the issues as you well

5 know of the increased level of asthma if you look at the

6 increased levels of cancer, if you look at the increased

7 levels of everything that are now a part of what we

8 consider everyday life in the areas on front, there's only

9 one solution you can come to and only one conclusion. I

10 would strongly recommend that you support the AQMD plan.

11 We have to take a stand. The State has to take a stand.

12 California is the Golden State. We don't want it to be

13 known as the gray state.

14 Thank you very much for this opportunity to

15 speak.

16 CHAIRPERSON SAWYER: Thank you.

17 Mr. Hall.

18 MR. HALL: Good morning, Chairman Sawyer and

19 members of the Board. Thank you for allowing me to read

20 the following statement from Senator Alan Lowenthal.

21 I believe our role as legislators and regulators

22 is to protect public health and safety. In California,

23 and in particulate in southern California, we are facing a

24 public health crisis, and the cause is air pollution.

25 As you know, there are thousands of premature

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345120

1 deaths, hospitalizations, lost work days, and cases of

2 asthma attributable to fine particulate pollution. We

3 must do all that we can to reduce this particulate

4 pollution.

5 As the Board decides on what is the best set of

6 measures to include in the State Implementation Plan, I

7 simply request that the Board ensure that whatever plan

8 the Board adopts that it is the best plan to not only

9 ensure compliance with the Federal Clean Air Act, but also

10 the best plan to protect our communities from this toxic

11 pollution.

12 The Board should adopt the South Coast Air

13 Quality Management District's 2007 Air Quality Management

14 Plan as part of the State Implementation Plan. These

15 measures will take years to fully implement, so we must

16 start now.

17 We must choose the most protective set of

18 measures available. Because several years from now if we

19 realize we may not reach attainment, we can then say we've

20 tried everything. However, if we do not choose the best

21 set of measures available, then years from now we will be

22 held accountable. If the Board chooses a less protective

23 set of measures, we will be setting up ourselves for

24 failure.

25 Earlier this year, the Board's Executive Officer

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345121

1 asked the U.S. EPA for an extension to comply with the

2 PM2.5 attainment standard. We need to be sure that

3 whatever is adopted today is not aimed at getting that

4 extension, but instead aimed at meeting or exceeding the

5 federal standard.

6 As Chair of the Budget Subcommittee on Resources

7 and Environmental Protection, I look forward to working

8 with the Board on ensuring that we have the Proper

9 resources to meet federal attainment. Thank you.

10 CHAIRPERSON SAWYER: Thank you very much.

11 Ms. Zivkovic, and then Bobby MacDonald, Roye

12 Love, and Harry Baldwin.

13 MS. ZIVKOVIC: Thank you. Good morning, Board

14 members, elected officials, staff, and members of the

15 public. Thank you for providing me with this opportunity

16 to read a statement from Assembly Member Betty Karnette

17 regarding this proposed State Implementation Plan before

18 you today.

19 As the Assembly Member representing the

20 communities that neighbor the ports of Los Angeles and Los

21 Angeles, I would like to express my concern about the

22 Mobile Source Strategy outlined in the State

23 Implementation Plan. The State must be more vigilant in

24 protecting the health of its residents through adoption of

25 a more stringent Mobile Source Strategy than is proposed

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345122

1 in the State Implementation Plan.

2 I respectfully urge the California State

3 Resources Board to strengthen the strategy with a

4 commitment to additional reductions in emissions from

5 mobile sources. These additional reductions are needed

6 for the State to meet Federal Clean Air standards. These

7 reductions are also consistent with the 2007 Air Quality

8 Management Plan adopted by the South Coast AQMD. If this

9 is not feasible at this juncture, I would urge the Board

10 to delay adoption of the State Strategy until the Board

11 considers the Air Quality Management Plan. It is my hope

12 that the Board will not delay the adoption of the AQMP

13 until October.

14 The emissions reductions outlined in the AQMP are

15 also consistent with the San Pedro Bay Ports Clean Air

16 Action Plan, which is crucial to accommodating projected

17 growth at the ports. As you're aware, the South Coast air

18 basin bears the burden of a disproportionate share of the

19 PM2.5 problem in the state and the nation, which results

20 in significant health impacts for residents. Significant

21 reductions are needed for the State to meet federal

22 standards. If not met, public health impacts would be

23 exasperated and would subject the region to sanctions by

24 the federal government. The State cannot risk losing

25 these federal dollars.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345123

1 I am confident that the federal standards can be

2 attained, but the State must take greater responsibility

3 for the regulation of mobile sources. By making sound and

4 sustainable decisions, you can both help California's

5 economy and the environment in one fell swoop. Even

6 Governor Schwarzenegger believes that our economy and our

7 environment do not have to be at odds. In order to have a

8 strong economy, we must have a stable environment.

9 And in order to have a stable environment, our

10 policy decision must be balanced and sustainable and our

11 actions must be directed towards the greatest possible

12 impact. You can help make that balance a reality. I

13 respectfully urge the Board to commit to additional

14 reductions from mobile sources. Thank you.

15 CHAIRPERSON SAWYER: Thank you very much.

16 Mr. MacDonald.

17 MR. MAC DONALD: Good morning, Mr. Chairman and

18 Board members. My name is Bobby MacDonald, and I'm

19 President of the Black Chamber of Commerce of Orange

20 County. And I'm also the Legal Affairs Chair of the

21 Orange County Presidents' Council, which is 27 ethnic

22 chambers and business organizations in Orange County.

23 I'm speaking before you this morning regarding

24 the postponement of the AQMP 2007 Air Quality Management

25 Plan. A good environment is good for business.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345124

1 Customers, investors, suppliers all benefit from clean

2 air, because it makes the region a place that is

3 attractive to live and work.

4 The failure of the California Air Resources Board

5 to address the pollution sources they regulate, primarily

6 trucks, trains, rail yard equipment and construction

7 equipment, unfairly shifts the burden to local businesses,

8 especially small businesses.

9 The health impacts of air pollution cost

10 businesses money due to lost work days, increased health

11 premiums, and decreased productivity.

12 Please consider the AQMD's 2007 plan. Please

13 remember small businesses are the backbone of the state

14 and carry much of the burden of regulation.

15 Thank you for your time and your consideration.

16 CHAIRPERSON SAWYER: Thank you very much.

17 Roye Love.

18 MR. LOVE: Good morning, Chairman Sawyer and

19 members of the Board. I'm Roy Love, Chairman of the

20 Environmental Commission for the City of Carson.

21 You certainly have a very critical decision to

22 make today. But I'm here to say that we live at ground

23 zero. I live in the city of Carson. We're just a few

24 miles from the harbor. The trains come through Carson.

25 We have the 110, the 710, the 405 freeways. And all of

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345125

1 that, that concoction has created serious environmental

2 condition for us.

3 I think some of you may know or may have read

4 about the situation at Del Amo Elementary School. Two

5 times in the past session that school had to be shut down

6 because of environmental problems. Teachers were

7 complaining of even memory loss in their case, not only

8 asthma and the cancers that I hear people telling me about

9 daily.

10 But also as you know we're involved in

11 standardized tests, No Child Left Behind. There were

12 instances where kids couldn't take their exams because

13 their noses were bleeding.

14 So we have a very critical situation. And I

15 believe that requires that we do everything that we can.

16 And here there is no doubt that I think the AQMD's plan

17 will add to that. I even think we must go much further.

18 But certainly, I think we -- with all the people alive in

19 the state, asthma and all of the pain that we're suffering

20 from, I think you as a body -- and as the Lieutenant

21 Governor said, increase your flexibility. You want to

22 have some other ways to do it. None of this is really put

23 in stone.

24 And so we want you to really this day adopt their

25 plan along with the plan that we have before us. This

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345126

1 day, do that. Because it is extremely critical. I hear

2 people in the city of Carson complaining there are areas

3 where we have plenty of cancer clusters. This is ongoing.

4 And I've seen that for years. This is'nt very different.

5 One of the other jobs I have, I'm a member of the

6 Board of the Communities for a Better Environment. And so

7 we have offices in Oakland and also in Huntington Park.

8 So it is critical that you do what is necessary. And that

9 can be nothing less than to adopt both plans today,

10 because that's the only way we can assure that we take a

11 step towards ameliorating the conditions that we have. I

12 thank you.

13 CHAIRPERSON SAWYER: Thank you.

14 Mr. Baldwin. And then Louie Lujan, Mario

15 Beltran, and Matt Miyasato.

16 MR. BALDWIN: Good morning, Chairman Sawyer.

17 Thank you for the opportunity to speak before you.

18 As you know, that has been pointed out, the South

19 Coast has a disproportionate share of problems from PM2.5

20 as compared to the rest of the nation and this state. To

21 address this problem, the AQMD is now proposing the AQMP,

22 which contains reductions as much as 63 tons a year of NOx

23 emissions beyond the CARB's strategy that they are

24 proposing right now.

25 We must take responsibility for reducing these

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345127

1 emissions. Because if not, we have a tremendous problem

2 here in the L.A. basin.

3 I currently am the Vice President of the Southern

4 California Association of Governments. And we have to

5 come up with the plans that meet the federal requirements.

6 Non-attainment of these funds would not only result in the

7 horrible health hazards that have been described more

8 today, but also would have a tremendous impact on the

9 funding for transportation funds from the federal

10 government.

11 Also to include an imposition of the federal

12 implementation plan which would be detrimental in helping

13 us address our own problems.

14 SCAG supports the AQMD's position. And the main

15 part of that position is the reduction of 63 tons a day of

16 NOx emissions. That's what we need to do to meet our

17 standards that are required to come forward.

18 We thank you for your time. And we hope that you

19 will credit the AQMD position along with your strategy and

20 to address the main problems that we have with the

21 emissions that need to be reduced for this area.

22 Thank you.

23 CHAIRPERSON SAWYER: Thank you very much.

24 Mr. Lujan.

25 COUNCIL MEMBER LUJAN: Good morning, Mr. Chairman

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345128

1 and members of the Board. My name is Louie Lujan. I'm a

2 Council member in city of La Puente, California, a

3 community about 25 to 30 miles east of downtown L.A.

4 I come to you tonight not only as a member of the

5 Council, but also a member of the San Gabriel Valley

6 Council of Governments, a member also of the Coalition for

7 a Safe and Clean Environment. And also by the way, a

8 proud owner of a brand-new hybrid vehicle. So I'm doing

9 my part as well.

10 I want to start off with a scenario that

11 obviously is supported not only by myself personally, by

12 our community, as Mr. Baldwin just mentioned, by the SCAG,

13 and that is many of us see this as a crisis situation, a

14 situation in which we need not only our emotions to come

15 into play, but also our logical thought process.

16 The issue is not only a complicated issue, but

17 it's one at the very essence requires very common sense

18 solutions. And I think some of the proposals and ideas

19 being shared today address just that, common sense.

20 We can talk about the statistics all day. We can

21 talk about how 80 percent of the pollution is coming from

22 the mobile sources. But what we're here today to do is to

23 ask that you strengthen your strategy such that it is

24 consistent with the AQMD's Air Quality Management Plan and

25 to do that by adopting the AQMP's suggestions and

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345129

1 solutions dealing with mobile sources specifically,

2 because we know a lot has been done with regard to the

3 stationary sources, the businesses, so forth. Items in a

4 sense don't move. They're not mobile. But we're asking

5 that you really take extra emphasis and a double look, if

6 you will, on the mobile sources.

7 We all know that even if all the stationary

8 sources were eliminated, all the buildings that pollute

9 were closed, we have to still deal with 80 percent of the

10 pollution coming from mobile sources, 80 percent.

11 Now, we all have talked about, of course, some of

12 the health effects. I'll read some of them here. We know

13 the air pollution is responsible for not only premature

14 deaths, but hospitalizations and lost work days annually.

15 That deals directly with some of the economic effects.

16 140,000 children or more have asthma problems and

17 respiratory issues. 70 percent of the airborne cancer

18 risk in our region is directly attributed not only to

19 pollution but also to diesel engines. 80 percent of the

20 emissions are not under local control.

21 I want to end with a little bit of a personal

22 story. I've seen the affects of the pollution,

23 specifically with my mother. She has severe asthma.

24 She's always had it. I can remember ever since I was a

25 little kid. I've been with her in the hospital not once,

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345130

1 twice, three times, but many times. And this is something

2 that I think, again going back to my main point, is

3 something we have to look at as a common sense issue. Not

4 only does it require our intellect, but our emotions and

5 our common sense.

6 Finally, I view the big picture as an issue where

7 these are problems and issues we created as human beings.

8 And therefore, we can also solve them. This is not

9 something that we're unfamiliar with. If we can get

10 ourselves into these types of issues, we can also come up

11 with solutions to solving those in the region. Thank you

12 for your time.

13 CHAIRPERSON SAWYER: Thank you.

14 Mr. Beltran. Mr. Beltran. Mr. Miyasato.

15 (Thereupon an overhead presentation was

16 presented as follows.)

17 MR. MIYASATO: Thank you, Chairman Sawyer,

18 members of the Board. I am Matt Miyasato with the South

19 Coast Air Quality Management District. I'm the Technology

20 Demonstrations Manager there. I have a couple slides I

21 want to present to you.

22 This is in regard specifically to the plug-in

23 hybrid control measure that we have proposed. I want to

24 address a couple comments that Chief Deputy Officer Thomas

25 Cackette had made.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345131

1 It's true our plug-in hybrid control measure is

2 very aggressive, and you'll see where the triangle is

3 there we're proposing very large numbers. But I'd also

4 like to remind you there's a proposed bill in the

5 Legislature, AB 1077, that is proposing very similar

6 numbers, if not more aggressive numbers. And those are

7 designated by the yellow stars. And, in fact, that was

8 co-authored by a former CARB member, one of your

9 colleagues, Assembly Member DeSaulnier.

10 If you click the slide, this is based on the

11 hybrid electric vehicle growth you can see nationwide.

12 You can see a very steep slope.

13 --o0o--

14 MR. MIYASATO: If you click it one more time, we

15 are proposing this growth could be duplicated in the South

16 Coast basin with your help and with the help of the South

17 Coast AQMD.

18 --o0o--

19 MR. MIYASATO: One final click will show you what

20 is by comparison in the ZEV emissions vehicle regulations

21 for fuel cell vehicles. What we are simply suggesting is

22 there can be done a lot more with regard to that

23 discrepancy. If you go to the next --

24 --o0o--

25 MR. MIYASATO: -- Mr. Cackette had mentioned we

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345132

1 were basing our analysis on the all-electric range, or

2 AER. And we did, in fact, put AER in our proposal for 80

3 percent NOx reduction. But I would like to remind you,

4 that is based on initial emissions measurements that we

5 garnered with your staff at the El Monte office on plug-in

6 hybrid conversion. You notice the bars that are below the

7 zero are representing benefits in emissions. So we are

8 seeing a 79 percent benefit in NOx under one of the

9 cycles.

10 What I would simply remind you is that that is by

11 third party aftermarket converter. Just imagine what an

12 original equipment manufacturer can do. In fact, there

13 have been two original equipment manufacturers who now

14 announced publicly they are looking at the technology

15 plug-in hybrid technology and plan to have vehicles on

16 about model year 2009. We would suggest strong action by

17 your Board can help accelerate that development and

18 actually accelerate the development of that technology.

19 So the final two points I would make is that with

20 the passage of the energy bill recently in the Senate,

21 there was also strong call by the nation for petroleum

22 reduction with increasing energy efficiency. We believe

23 that plug-in hybrids obviously can provide a long step

24 toward achieving corporate average fuel economy standards

25 and increasing that.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345133

1 And finally I think what is echoed by other

2 members, witnesses that have testified is that also goes a

3 long way toward improving greenhouse gas emissions. We

4 see the plug-in hybrid technology is doing a big

5 three-fold benefit: Improve urban air quality, reduce

6 petroleum dependence, and reduce greenhouse gas emissions.

7 And we would ask you to please seriously consider some of

8 our measures as we move forward. Thank you.

9 CHAIRPERSON SAWYER: Thank you.

10 We'll now have Robert Miles, then David Ford, and

11 Romel Pascual.

12 MR. MILES: Robert Pullen Miles. Thank you, Mr.

13 Chairman, members of the Board. My name is Robert Pullen

14 Miles. I am a field deputy for State Senator Jenny

15 Oropeza, the 28th Senatorial District. And I would like

16 to read a little statement from the Senator.

17 I urge CARB to further enhance the proposed State

18 Mobile Source Control Strategy to ensure that expeditious

19 progress is being made and that federal deadlines for

20 attainment of clean air standards will be met.

21 I am also concerned that the CARB has decided to

22 delay the adoption of the South Coast Air Quality

23 Management District's Air Quality Management Plan until

24 October 2007, but will instead consider approval of its

25 Mobile Source Strategy for California on June 22nd, 2007.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345134

1 This means that the State agency will essentially

2 decide the fate of millions of southern Californians

3 without dealing with the urgencies of local air quality

4 needs.

5 It is critical that CARB acknowledge this

6 shortfall in the delay strategy. We must act now to

7 address southern California's current air quality and

8 health crisis.

9 This is submitted by Senator Jenny Oropeza.

10 Thank you.

11 CHAIRPERSON SAWYER: Thank you very much.

12 Mr. Ford.

13 Mr. FORD: Thank you, members of the Board. My

14 name is David Ford. I'm the Chief of Staff to State

15 Assembly Member Ted Lieu. In that capacity, let me

16 welcome everyone to the 53rd Assembly District. And thank

17 you for supporting our local economy.

18 And there's long been a thought when air quality

19 politics in L.A. County and in the southern California

20 area that coastal areas create the smog, but then blows

21 inland. And prevailing wind aside, let me quickly put the

22 light in that notion.

23 When the U.S. EPA did a study of the top ten most

24 polluted ZIP codes in California, four of them were here

25 in the south bay. Six of the top ten toxic release

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345135

1 emitters are here in the south bay. Six of the top ten.

2 So with the affect of that, of all the

3 sub-regions of Los Angeles County, the south bay is second

4 only to Antelope Valley in instances of childhood asthma.

5 And I'll make one further point past this.

6 California has a history of leading the way on these

7 issues and of setting very high goals for ourselves and

8 then finding ways to meet them. So what I'd urge the

9 Board today is adopt the AQMP. Go past it, if you want.

10 Challenge California. Challenge our economy. Because we

11 have a history of meeting those goals. It's what we do as

12 a state. So thank you for your time and thank you for

13 allowing me to speak.

14 CHAIRPERSON SAWYER: Thank you.

15 Mr. Pascual, and then Peter Yao, Elaine Chang,

16 and Henry Hogo.

17 Mr. PASCUAL: Good morning, Chairman, and members

18 of the Board. My name is Romel Pascual. I'm the Social

19 Director for Environment for Mayor Antonio Villaraigosa.

20 We all know that the South Coast air basin

21 experiences a disproportionate share of exposure to PM2.5

22 in excess of federal standards. And we know this has

23 significant public health impacts for all Angelinos.

24 The South Coast Air District approved the 2007

25 Air Quality Management Plan earlier this month with the

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345136

1 expectation that the Air Resources Board would consider

2 this plan at this meeting to assist us in submitting the

3 ozone plan.

4 We urge ARB to take more responsibility for

5 greater mobile sources control. Any delay in adopting

6 strong and feasible measures would only continue the

7 uncertainty in the region about rules and regulations

8 forthcoming and sends a wrong message to EPA that we're

9 unclear in what measures we'd like to resolve with respect

10 to air quality problems here in the basin.

11 As ARB moves forward in the coming months to

12 complete the SIP, we urge you to make the strongest

13 commitment possible to reducing mobile sources.

14 Thank you for your attention. And thank you to

15 your commitment to air quality.

16 CHAIRPERSON SAWYER: Thank you.

17 Mr. Yao.

18 MAYOR YAO: Good morning, Mr. Chairman and

19 members of the Board. My name is Peter Yao. I'm

20 currently the Mayor of the city of Claremont.

21 Claremont is the east most city in the Los

22 Angeles County. Claremont is proud to be a green city

23 with over 33,000 City-owned trees and over 3,000 acres of

24 City-owned park lands and wilderness and open space. Just

25 this past August, our voters approved purchasing an

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345137

1 additional 180 acres of hillside.

2 We have many LEED certified buildings. Many

3 fleet of the trucks are all low emission. And even our

4 police department drives around in Toyota hybrid vehicles.

5 Over the past 100 years, Claremont has done

6 everything we can to produce an environment that's healthy

7 and clean. And we're proud to be environmentally

8 responsible.

9 Claremont is only 14 square smiles in size, yet

10 we have two major freeways, the 210 freeway and the 10

11 freeway, going through our city. Most of our residents

12 can hear, can see, can smell, and feel the shake of all

13 the trucks loading the goods from the Los Angeles and Los

14 Angeles ports on their way to the east part of the

15 country.

16 You can see that the Claremont is assuming a

17 great deal of burden associated with the mobile pollution

18 sources.

19 I have two requests of the Board. Number one is

20 set a high standard such as those recommended by the South

21 Coast AQMP. They are achievable. As a career engineer

22 and an engineering manager, I want to assure you that

23 technology is not something to be afraid of. It's a tool.

24 Yet, it's not a tool that's waiting for an application to

25 happen. It's a tool that's driven by demands.

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345138

1 Just look back not too long ago when we decide

2 that we want to put a man on the moon. Less than a decade

3 later, we have a man on the moon.

4 Today, you're setting a standard for something

5 that's going to happen 15 years from now. Set a high

6 standard. We're going to achieve it.

7 Secondly, I want to encourage you to adopt a plan

8 as soon as possible. Want to remind us that the lessons

9 that we learn about the time and value of money also apply

10 to cleaning up the air. The sooner we get started, the

11 less we have to do, and simpler the job is. Thank you

12 very much.

13 CHAIRPERSON SAWYER: I would like to say I share

14 your engineering optimism for being able to solve these

15 problems.

16 Ms. Chang.

17 (Thereupon an overhead presentation was

18 presented as follows.)

19 MS. CHANG: Good morning, Chairman Sawyer and

20 members of the Board. It's a pleasure to be here before

21 you today. My name is Elaine Chang, Deputy Executive

22 Officer with the South Coast Air Quality Management

23 District.

24 --o0o--

25 MS. CHANG: The State Strategies presented before

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345139

1 you will have a profound impact on our air basin for the

2 many years to come. It will represent not only how you

3 fulfil the promise you made in the 2003 AQMP designed for

4 the then one-hour ozone standard, but also many upcoming

5 air quality standards, including the just currently

6 released proposed new 8-hour ozone standard.

7 --o0o--

8 MS. CHANG: I do not want to sound unappreciative

9 what this Board has done in the last several decades to

10 bring about air quality improvement to this air basin. If

11 you look at the last four years as part of the 2003 AQMP

12 implementation, only 33 tons of the NOx reductions out of

13 the total over 300 tons committed were adopted. We need

14 to pick up our pace.

15 --o0o--

16 MS. CHANG: There could be disagreement between

17 two agency staffs in terms of how much NOx emissions will

18 be needed for 2014 for the PM 2.5. But there's no

19 disagreement we need a lot of NOx emission reduction for

20 proposed PM2.5 and 8-hour ozone standard.

21 --o0o--

22 MS. CHANG: There's no disagreement where the

23 major source is coming from NOx emissions.

24 --o0o--

25 MS. CHANG: We're pleased to hear the staff is

PETERS SHORTHAND REPORTING CORPORATION (916) 362-2345140

1 proposing additional 14 tons, leaving the remaining 49 for

2 the PM 2.5 attainment strategy. We doubt that you can

3 explain away the 49 tons through weight of evidence or

4 debate when our plan comes before you.

5 But we also want to point out that in our plan

6 that we have added flexibility language that will address

7 your concern of anti-backsliding. Adding more tons now is

8 easier to make adjustment later is almost impossible to

9 add additional NOx tons if we find we need more. Just we

10 don't have enough time for fleet turnover.

11 --o0o--

12 MS. CHANG: Also looking at the AR ozone,