MEETING

STATE OF CALIFORNIA

AIR RESOURCES BOARD

CAL/EPA HEADQUARTERS

BYRON SHER AUDITORIUM

SECOND FLOOR

1001 I STREET

SACRAMENTO, CALIFORNIA 95814

THURSDAY, SEPTEMBER 18, 2014

9:13 A.M.

TIFFANY C. KRAFT, CSR

CERTIFIED SHORTHAND REPORTER

LICENSE NUMBER 12277

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APPEARANCES

BOARD MEMBERS

Ms. Mary Nichols, Chairperson

Ms. Sandra Berg

Mr. Hector De La Torre

Mr. John Eisenhut

Supervisor John Gioia

Mayor Judy Mitchell

Mrs. Barbara Riordan

Supervisor Ron Roberts

Supervisor Phil Serna

Professor Daniel Sperling

STAFF

Dr. Alberto Ayala, Acting Executive Officer

Ms. Edie Chang, Deputy Executive Officer

Ms. Ellen Peter, Chief Counsel

Ms. La Ronda Bowen, Ombudsman

Ms. Mary Jane Coombs, Manager, Program Development 

Section, ISD

Ms. Monique Davis, Staff Air Pollution Specialist, Climate 

Investments Implementation Section, TTD

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APPEARANCES (CONTINUED)

STAFF

Mr. Patrick Gaffney, Staff Air Pollution Specialist, 

Climate Change Program Data Section, ISD

Mr. Jason Gray, Manager, Market Monitoring Section

Ms. Cynthia Marvin, Chief, Transportation and Toxics 

Division

Ms. Rajinder Sahota, Chief, Climate Change Program 

Evaluation Branch

Mr. Jimmy Steele, Air Resources Engineer, Transportation 

and Toxics Division

Ms. Emily Wimberger, Air Pollution Specialist, ISD

ALSO PRESENT

Mr. Alan Abbs, Tehama County APCD

Mr. Steven Arita, Chevron Corporation

Ms. Susie Berlin, NCPA & MSR Public Power

Mr. Damian Breen, Bay Area AQMD

Mr. Tony Brunello, CE2 Carbon Capital

Ms. Colleen Cadwallader, Sacramento Tree Foundation

Mr. David Cox, Coalition for Renewable Natural Gas

Ms. Shasa Curl, City of Richmond

Mr. Steve Dutra, Tree Lodi

Ms. Veronica Garibay, Leadership Council

Mr. Frank Harris, Southern California Edison

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INDEX

PAGE

Item 14-7-1

Chairperson Nichols 3

Motion 3

Vote 4

Item 14-7-2

Chairperson Nichols 4

Motion 4

Vote 5

Item 14-7-4

Chairperson Nichols 5

Acting Executive Officer Ayala 7

Staff Presentation 9

Mr. Hogo 51

Mr. Breen 52

Mr. Abbs 55

Mr. Jordan 57

Supervisor Williams 60

Mr. Robinson 62

Ms. Lange 67

Ms. Hughes 68

Ms. Ratner 70

Mr. Willis 72

Ms. Nzegwu 73

Mr. Magavern 77

Ms. Rincon 79

Ms. Shankar 81

Ms. Garibay 83

Ms. Prichard 85

Ms. Pendleton 88

Mr. Wilkinson 89

Ms. Oliver 91

Mr. Malorey 92

Ms. Cadwallader 95

Ms. Curl 96

Mr. Mills 97

Ms. Twomey 100

Mr. Larrea 102

Ms. Holmes-Gen 104

Ms. Topp 106

Mr. Wildman 108

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INDEX (continued)

PAGE

Item 14-7-7

Chairperson Nichols 227

Acting Executive Officer Ayala 228

Staff Presentation 228

Motion 234

Vote 234

Public Comment 235

Adjournment 236 

Reporter's Certificate 237 

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PROCEEDINGS

CHAIRPERSON NICHOLS: Good morning, everyone. 

Welcome all to the September 18th, 2014, meeting of the 

Air Resources Board. And I don't need to ask you to come 

to order because you're already in order. Let's please 

rise and say the Pledge. 

(Thereupon the Pledge of Allegiance was

Recited in unison.)

CHAIRPERSON NICHOLS: Madam Clerk, would you 

please call the roll? 

BOARD CLERK JENSEN: Dr. Balmes? 

Ms. Berg? 

BOARD MEMBER BERG: Here. 

BOARD CLERK JENSEN: Mr. De La Torre? 

Mr. Eisenhut? 

BOARD MEMBER EISENHUT: Here. 

BOARD CLERK JENSEN: Supervisor Gioia? 

BOARD MEMBER GIOIA: Here. 

BOARD CLERK JENSEN: Mayor Mitchell? 

BOARD MEMBER MITCHELL: Here. 

BOARD CLERK JENSEN: Mrs. Riordan? 

BOARD MEMBER RIORDAN: Here. 

BOARD CLERK JENSEN: Supervisor Roberts? 

BOARD MEMBER ROBERTS: Here. 

BOARD CLERK JENSEN: Supervisor Serna? 

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BOARD MEMBER SERNA: Here. 

BOARD CLERK JENSEN: Supervisor Sherriffs? 

Professor Sperling? 

BOARD MEMBER SPERLING: Here. 

BOARD CLERK JENSEN: Chairman Nichols? 

CHAIRPERSON NICHOLS: Here. 

BOARD CLERK JENSEN: Madam Chairman, we have a 

quorum. 

CHAIRMAN NICHOLS: Thank you. 

I would note, our two physician members are both 

missing this morning for completely independent reasons. 

But I just want to make sure everybody realizes that you 

better stay well throughout the course of this meeting. 

We did once have to have them spring into action. That 

was a day I'll never forget. 

A couple of announcements before we get started. 

First of all, also missing today is Richard Corey, our 

Executive Officer, is in China. And so filling in for him 

is our Deputy Executive Officer, Alberto Ayala, who just 

recently returned from China. If that suggests to you 

that we're spending a lot of time on issues related to 

China, that would be correct. Under the MOU that we have 

with the National Development and Reform Commission in 

China, there is a lot of activity going on aimed at 

helping spread some of California's practices, including 

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zero emission investigations in China. So it's very 

exciting work. 

Anyone who wishes to testify this morning should 

please fill out a request to speak card. They're 

available in the lobby or from the Clerk. And we very 

much appreciate it if you do that before the item comes up 

so that the Clerk can organize the speakers' list and we 

can proceed more efficiently. 

We also impose a three-minute time limit on oral 

testimony, but you can submit anything you want in 

writing. And so hopefully people can find a way to 

summarize their testimony in three minutes. 

All right. First item on our agenda this morning 

is a consent calendar addressing two research proposals 

for the Board's consideration. So before we can proceed 

to vote on these items, I need to ask the Clerk if anybody 

signed up to testify. No, they did not. 

Are there any Board members who would like to 

remove this from consent and discuss? No. 

Seeing none, then we can close the record on 

these items. They we are both good proposals. I believe 

you had an opportunity to review them. 

BOARD MEMBER RIORDAN: Move approval, Madam 

Chair. 

BOARD MEMBER SERNA: Second. 

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CHAIRPERSON NICHOLS: All in favor, please say 

aye. 

(Seven aye votes) 

CHAIRPERSON NICHOLS: Opposed? 

Abstentions? One abstention from Dr. Sperling. 

Good. 

Okay. 

BOARD MEMBER BERG: I need to abstain. 

CHAIRPERSON NICHOLS: Also from Ms. Berg. 

(Two abstentions.)

CHAIRPERSON NICHOLS: The next item on the 

consent calendar is Item Number 14-7-2. This is the 

maintenance plan and redesignation request for Mammoth 

Lakes PM10. 

Everybody knows PM10 is still a problem in some 

parts of our state. We're finally at the point where we 

can designate and put a plan in effect. 

Is there anybody who signed up to testify on this 

item? No. 

Any Board member who wishes to remove the item 

for discussion? Okay. 

Then we can close this. And have you all had an 

opportunity to review this item? Yes. I see heads 

nodding. 

Can somebody make a motion, please? 

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BOARD MEMBER BERG: So moved. 

BOARD MEMBER GIOIA: Second. 

CHAIRPERSON NICHOLS: All in favor, please say 

aye. 

(Unanimous aye vote) 

CHAIRPERSON NICHOLS: Opposed? None. 

No abstentions on this one. 

All right. The next item is the cap and trade 

auction proceeds interim guidance on investments. This 

one is not so quick a matter. 

We have an opportunity here as a result of the 

State Legislature's action to make even greater strides 

towards reducing greenhouse gas emissions by funding smart 

projects that will pay long-term dividends. These 

projects will deliver environmental public health and 

economic benefits to the people of California, 

particularly to residents of our most impacted 

communities. 

Governor Brown and the Legislature created the 

budget and administrative framework for spending the 

state's portion of the auction proceeds that come through 

our Cap and Trade Program, which are being now deposited 

which are held in the Greenhouse Gas Reduction Fund. This 

spending must be consistent with the three-year investment 

plan that this Board approved last year. 

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That concludes my presentation. We would be 

happy to answer any questions you have. 

CHAIRPERSON NICHOLS: I'd like to note this is 

the first time that I can ever recall that we had a 

regulatory item where no one has signed up to speak. 

Now, I could say that Mr. Steele either has so 

completely satisfied all of our stakeholders that they are 

unwilling to even come forward. On the other hand, if 

this was American Idol we might say, you know, he lost 

because people didn't come to talk about his item. 

BOARD MEMBER ROBERTS: I quickly move approval. 

BOARD MEMBER RIORDAN: They're probably in shock 

their fees are going down. 

CHAIRPERSON NICHOLS: That could be it. I think 

we have a motion to approve. And a second. 

BOARD MEMBER RIORDAN: Second. 

CHAIRPERSON NICHOLS: All right. All in favor, 

please say aye. 

(Unanimous aye vote.) 

CHAIRPERSON NICHOLS: Any opposed? None. 

Any abstentions? 

Congratulations. Well done. 

We do have one witness who signed up for the 

public comment period, the open period when anyone can 

stand up and take three minutes to talk about anything 

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that's not covered by one of our agenda items. And the 

witness is Mr. Townsend from IETA. 

MR. TOWNSEND: Madam Chair, members of the Board, 

thank you for your time today. I'll be brief. 

This topic was mentioned by Mr. Brunello earlier 

in the day today. I'm now speaking on behalf of the 

International Emissions Trading Association, or IETA, 

which is a multi-sector group of more than 140 businesses 

across California and globally. 

We are increasingly concerned about program and 

market impacts linked to ARB's clean harbor ODS 

investigation. IETA fully supports ARB's efforts to 

ensure that offsets are generated in full compliance with 

relevant regulations. However, the process has taken 

longer, now four months and running, and lacks the 

transparency many stakeholders were led to expect. 

IETA and others have written letters and reached 

out to ARB summarizing these concerns and requesting 

clarity on status of its clean harbor review and 

anticipated time line for final determination. 

We have also worked hard to provide specific 

suggestions on how to clarify the applicable regulatory 

language to enable investments in projects and 

technologies which are needed to make California's program 

a success. 

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Further delays and a lack of clarity will lead to 

mounting concern and confusion across California's carbon 

market community. And this touches a range of 

stakeholders who are directly and indirectly linked to the 

clean harbors review. 

Once more, we request transparency and expediency 

regarding ARB's review and the timeline by which it will 

reach a decision on clean harbors. 

We also take this opportunity to urge ARB to 

clarify that regulatory compliance for offset projects 

should be limited to activities that are relevant to 

project activities. 

Thank you for your time and today's opportunity 

to comment. 

CHAIRPERSON NICHOLS: Thank you. All right. 

Any additional comments or questions from Board 

members? If not, we will stand adjourned. See you all in 

Los Angeles in October. 

(Whereupon the Air Resources Board adjourned 

at 3:34 p.m.)

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CERTIFICATE OF REPORTER

I, TIFFANY C. KRAFT, a Certified Shorthand 

Reporter of the State of California, and Registered 

Professional Reporter, do hereby certify:

That I am a disinterested person herein; that the 

foregoing hearing was reported in shorthand by me, 

Tiffany C. Kraft, a Certified Shorthand Reporter of the 

State of California, and thereafter transcribed into 

typewriting.

I further certify that I am not of counsel or 

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

way interested in the outcome of said hearing.

IN WITNESS WHEREOF, I have hereunto set my hand 

this 2nd day of October, 2014.

 

TIFFANY C. KRAFT, CSR, RPR

Certified Shorthand Reporter

License No. 12277 

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