# Enclosure III

ARB Hearing TranscriptMEETING

STATE OF CALIFORNIA

AIR RESOURCES BOARD

JOE SERNA, JR. BUILDING

CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY

BYRON SHER AUDITORIUM, SECOND FLOOR

1001 I STREET

SACRAMENTO, CALIFORNIA

THURSDAY, NOVEMBER 18, 2010

9:00 A.M.

TIFFANY C. KRAFT, CSR

CERTIFIED SHORTHAND REPORTER

LICENSE NUMBER 12277APPEARANCES

BOARD MEMBERS

Ms. Mary Nichols, Chairperson

Dr. John R. Balmes

Ms. Sandra Berg

Ms. Doreene D'Adamo

Ms. Lydia Kennard

Mrs. Barbara Riordan

Mr. Ron Roberts

Dr. Daniel Sperling

Dr. John G. Telles

Mr. Ken Yeager

STAFF

Mr. James Goldstene, Executive Officer

Ms. La Ronda Bowen, Ombudsman

Mr. Tom Cackette, Chief Deputy Executive Officer

Mr. Bob Fletcher, Deputy Executive Officer

Ms. Ellen Peter, Chief Counsel

Ms. Lynn Terry, Deputy Executive Officer

Ms. Mary Alice Morency, Board Clerk

Mr. Nicholas Berger, Staff, Technical Evaluation Section,

SSDAPPEARANCES CONTINUED

STAFF

Mr. Rodney Hill, Staff Air Pollution Specialist, Process

Evaluation Section, SSD

Mr. Wes Ingram, Alternative Fuels Section, SSD

Mr. Todd Sax, Chief, Mobile Source Analysis Branch, PTSD

ALSO PRESENT

Mr. Will Barrett, ALA

Ms. Nidia Bautista, Coalition for Clean Air

Mr. Peter Bransfield, Rypos, Incorporated

Mr. Luke Breit, Forests Forever

Mr. Hank de Carbonel, CA Pumpers

Mr. Luis Cabrales, Coalition for Clean Air

Mr. William Davis, Southern California Contractors

Association

Mr. Todd Ellis, Imperium Renewables

Mr. Michael Endicott, Sierra Club California

Mr. D. Douglas Fratz, Consumer Specialty Products

Association

Mr. Pedro Guzman, Clean Carwash

Mr. Henry Hogo, SCAQMD

Ms. Bonnie Holmes-Gen, ALA

Mr. Gregory Johnson, Sherwin Williams

Mr. Joseph Kubsh, Manufacturers of Emission Control

AssociationAPPEARANCES CONTINUED

ALSO PRESENT

Ms. Barbara Losey, APE Research Council

Mr. James Lyons, Sierra Research

Mr. Dan Miller, Save Mart

Mr. Larry Milton, 21 Eagle

Mr. Simon Mui, NRDC

Mr. Brian Nowicki, Center for Biological Diversity

Ms. Betty Plowman, CDTOA

Senator Richard Polanco, Rypos Incorporated

Mr. Doug Raymond, National Aerosol Association, Radiator

Specialty, CRC, Ecolab

Ms. Catherine Reheis-Boyd, WSPA

Mr. Ralph Schulhe, 21 Eagle

Mr. Matt Scrap, California Trucking Association

Mr. Tom Sem, Proventia Emission Control

Mr. John Shears, CEERT

Mr. Mik Skvarla, Lucas Associates

Mr. Patrick Smith, Harris Ranch

Mr. Mike Shuemake, CVTR

Mr. Bob Sweger, Stoner, Incorporated

Mr. Mike Tunnell, American Trucking Association

Dr. Barry Wallerstein, SCAQMD

Ms. Morgan Wyenn, NRDC

Mr. Joseph Yost, Consumer Specialty Products Association

Mr. Harry Zechman, Stoner, IncorporatedINDEX

Page

Item 10-10-1, 10-10-2, 10-10-4 12

Motion 12

Vote 12

Item 10-10-6

Chairperson Nichols 12

Executive Officer Goldstene 13

Staff Presentation 13

Board Q&A 24

Mr. Kubsh 31

Mr. Sem 33

Mr. Smith 34

Mr. Miller 35

Mr. Shuemake 36

Mr. Milton 38

Senator Polanco 41

Mr. Bransfield 43

Mr. Skvarla 46

Mr. Schrap 46

Mr. Schulhe 49

Mr. Tunnell 52

Motion 67

Vote 67

Item 10-10-7

Chairperson Nichols 67

Executive Officer Goldstene 68

Staff Presentation 69

Mr. Yost 89

Mr. Fratz 92

Mr. Johnson 94

Dr. Wallerstein 96

Mr. Zechman 97

Mr. Sweger 98

Mr. Raymond 100

Ms. Wyenn 101

Ms. Losey 102

Mr. Cabrales 106

Mr. Guzman 108

Motion 110

Vote 110INDEX CONTINUED

Page

Item 10-10-9

Chairperson Nichols 112

Executive Officer Goldstene 114

Staff Presentation 115

Board Q&A 139

Mr. Hogo 145

Dr. Wallerstein 148

Ms. Wyenn 150

Mr. de Carbonel 152

Mr. Lee 154

Ms. Plowman 155

Mr. Lyons 158

Mr. Davis 160

Ms. Holmes-Gen 163

Ms. Bautista 165

Item 10-10-8

Chairperson Nichols 177

Executive Officer Goldstene 178

Staff Presentation 179

Ms. Reheis-Boyd 191

Mr. Ellis 194

Mr. Barrett 196

Mr. Shears 198

Ms. Bautista 200

Mr. Mui 201

Q&A 203

Vote 218

Public Comment

Mr. Breit 218

Mr. Endicott 220

Mr. Nowicki 222

Adjournment 225

Reporter's Certificate 2261

1 PROCEEDINGS

2 CHAIRPERSON NICHOLS: Welcome, everybody. We are

3 pleased to welcome you to the November 18th, 2010, public

4 meeting of the Air Resources Board.

5 And I will ask you to come to order, please.

6 We customarily begin our meeting by saying the

7 Pledge of Allegiance to the flag, so if you could please

8 rise and join me, I would appreciate it.

9 (Thereupon the Pledge of Allegiance was

10 Recited in unison.)

11 CHAIRPERSON NICHOLS: Thank you.

12 The Clerk will please call the roll.

13 BOARD CLERK MORENCY: Dr. Balmes?

14 BOARD MEMBER BALMES: Here.

15 BOARD CLERK MORENCY: Ms. Berg?

16 Ms. D'Adamo?

17 BOARD MEMBER D'ADAMO: Here.

18 BOARD CLERK MORENCY: Ms. Kennard?

19 BOARD MEMBER KENNARD: Here.

20 BOARD CLERK MORENCY: Mayor Loveridge?

21 Mrs. Riordan?

22 BOARD MEMBER RIORDAN: Here.

23 BOARD CLERK MORENCY: Supervisor Roberts?

24 BOARD MEMBER ROBERTS: Here.

25 BOARD CLERK MORENCY: Professor Sperling?2

1 BOARD MEMBER SPERLING: Here.

2 BOARD CLERK MORENCY: Dr. Telles?

3 BOARD MEMBER TELLES: Present.

4 BOARD CLERK MORENCY: Supervisor Yeager?

5 BOARD MEMBER YEAGER: Here.

6 BOARD CLERK MORENCY: Chairman Nichols?

7 CHAIRPERSON NICHOLS: Here.

8 BOARD CLERK MORENCY: Madam Chair, we have a

9 quorum.

10 CHAIRPERSON NICHOLS: Thank you very much.

11 I need to make the announcements about the

12 logistics here.

13 In case there is anyone who's planning to speak

14 who has not yet signed up and isn't familiar with our

15 procedures, we have a table outside the auditorium and you

16 can fill out a card. We appreciate it so we know how many

17 speakers we need to accommodate.

18 We will impose during the regular comment period

19 a three-minute time limit and ask people to just state

20 their name when they come up to the podium. And if you

21 have written comments, please submit them in writing and

22 just summarize them when you speak so we can save time.

23 And we can all learn better from reading than we can from

24 listening.

25 For safety reasons, I would appreciate it if you3

1 would note the exits, the signs at the back of the room.

2 In the event of a fire alarm, we are required to exit this

3 room immediately, go down stairs, and out of the building

4 until the all-clear signal is given.

5 I think that's it as far as housekeeping is

6 concerned.

7 And we do have a number of items on our agenda

8 today, but before we get to them, I want to take just a

9 couple of minutes. It's been an amazing week for us with

10 the Governor's third climate summit taking place at U.C.

11 Davis in addition to meetings of ICAP, the International

12 Carbon Group, and the Western Climate Initiative. And I

13 think it's fair to say that the focus has been on

14 California this week for many reasons; obviously, the

15 results of the November election and the very large

16 victory for the no on 23, of course, has generated a lot

17 of excitement. Some people are immediately spinning it as

18 signs that California is about to fall into the ocean and

19 we've really taken leave of our senses.

20 But I think the greater majority of people who

21 commented on this have recognized that what happened here

22 was not necessarily a vote of endorsement for any

23 particular policy but a rejection of a campaign that was

24 designed to reverse or completely deviate efforts that

25 California has been making for many years to make our

### [Pages 4-10 of the transcript contain the remarks from Chairman Nichols on

Governor Schwarzenegger’s Global Clim ate Summit 3, and at the Chairman’s

request, from Messrs. Noel de Tilly, Steve Anderson, and Tim Leslie on

international climate change policies and actions.

The pages are available at: http://www.arb.ca.gov/boar d/m t/2010/mt111810.pdf .]11

1 closer and closer to reality, it gives us and our staff an

2 opportunity to look at what else can we do to make sure

3 that the MOU and our actions to address climate change are

4 truly regional and not just focused on a few sectors of

5 our economy.

6 We made significant progress on the mechanics of

7 the emissions tradings systems and have moved forward in

8 the area of offsets. As well, we continue to expand our

9 discussions with the Regional Greenhouse Gas Initiative,

10 some members of which were able to join us here in

11 California as well. So the collaboration is continuing to

12 expand and I think pay off, driven by your leadership and

13 our Governors and Premieres. I thank you for that and the

14 opportunity today.

15 CHAIRPERSON NICHOLS: Thank you for joining us

16 this morning.

17 Would any of the Board members like to ask any

18 questions of this group? Just nod.

19 Thank you for being here. And we will continue

20 to get reports from James as to the progress that's going

21 on here.

22 I get asked questions all the time about whether

23 any of this stuff is real. People can say yes, it's real.

24 Thank you.

25 Okay. Our first item of business here is a12

1 consent calendar. We have several different items that

2 are on the consent where we had no indication of anybody

3 wishing to speak on these items and no particular

4 controversy. And I told the staff not to make a

5 presentation. But if any Board member has a question,

6 they're certainly welcome to raise it.

7 So we have the PM10 implementation and

8 maintenance plan and redesignation request for Sacramento

9 County. We have the approval of proposed Imperial County

10 8-hour ozone modified Air Quality Management Plan 2009

11 SIP. And we have two research proposals all in front of

12 us.

13 Is there any discussion on any of these items?

14 If not, I think I can ask for a motion to move

15 all three of them at the same time.

16 BOARD MEMBER RIORDAN: So moved.

17 BOARD MEMBER BERG: So moved.

18 BOARD MEMBER ROBERTS: Second.

19 CHAIRPERSON NICHOLS: Thank you very much. We'll

20 take care of those.

21 That moves us to the proposed amendment of the

22 ATCM for in-use diesel fuel ACTM TRU. We're talking about

23 airborne toxic control measures for transport

24 refrigeration units. Staff is proposing three amendments

25 to this regulation. These proposed amendments address two

### [Pages 13–224 of the transcript records the balance of the Board hearing as

specified in the Index of the transcript. These pages are available at:

http://www.arb.ca.gov /board/ mt/2010/mt111810.pdf .]225

1 (Thereupon the California Air Resources

2 Board meeting adjourned at 4:17 p.m.)

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25226

1 CERTIFICATE OF REPORTER

2 I, TIFFANY C. KRAFT, a Certified Shorthand

3 Reporter of the State of California, and Registered

4 Professional Reporter, do hereby certify:

5 That I am a disinterested person herein; that the

6 foregoing hearing was reported in shorthand by me,

7 Tiffany C. Kraft, a Certified Shorthand Reporter of the

8 State of California, and thereafter transcribed into

9 typewriting.

10 I further certify that I am not of counsel or

11 attorney for any of the parties to said hearing nor in any

12 way interested in the outcome of said hearing.

13 IN WITNESS WHEREOF, I have hereunto set my hand

14 this 2nd day of December, 2010.

15

16

17

18

19

20

21

22 TIFFANY C. KRAFT, CSR

23 Certified Shorthand Reporter

24 License No. 12277

25