BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1384
                                                                  Page 1

          Date of Hearing:  April 27, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                    AB 1384 (Miller) - As Amended:  April 13, 2009
           
          SUBJECT  :  Gasoline:  vapor recovery systems

           SUMMARY  :  Extends the deadline for compliance with enhanced  
          vapor recovery (EVR) regulations adopted by the Air Resources  
          Board (ARB) for one year (until April 1, 2010) for gasoline  
          service stations owned or operated by a local government.

           EXISTING LAW  requires ARB to adopt procedures for determining  
          the compliance of any system designed for the control of  
          gasoline vapor emissions during gasoline marketing operations,  
          including storage and transfer operations, and additional  
          performance standards to ensure that systems for the control of  
          gasoline vapors from motor vehicle fueling operations do not  
          cause excessive spillage and emissions.  Under ARB regulations,  
          the deadline for installing EVR Phase II upgrades is April 1,  
          2009.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           1)Background.   The EVR program requires gasoline dispensing  
            facilities (GDFs) to upgrade equipment to meet several  
            technology-forcing standards.  The EVR regulations were  
            adopted in March 2000 and are identified as a required measure  
            in the 1999 settlement of a lawsuit challenging implementation  
            of the 1994 State Implementation Plan (SIP).  Emission  
            reductions from EVR vapor recovery systems will total 372  
            tons/day of reactive organic gases (ROG) statewide once fully  
            implemented.

            The EVR requirements are being phased in from 2001 to 2010.   
            Two major equipment upgrades occurred in 2005 and 2006.  The  
            latest EVR upgrade for Phase II vapor recovery affecting  
            approximately 12,000 GDFs was to be completed by April 1,  
            2009.  

            The emission reductions credited to EVR Phase II are 7.2  
            tons/day, which is broken down as follows: 








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                 3.1 tons/day due to reduced fugitive emissions from  
                 underground storage tank, vapor piping, and dispenser  
                 equipment. 
                 3.9 tons/day due to reduced spillage (includes "dripless  
                 nozzle" standard) 
                 0.2 tons/day due to reduced liquid retention (evaporation  
                 from liquid gasoline in nozzle that is open to atmosphere  
                 during idle periods).

            The EVR Phase II upgrade requires different gasoline dispenser  
            equipment and installation of a pressure management device.   
            The estimated equipment and installation costs for EVR Phase  
            II are:

                 2 dispenser system:   $17,240
                 4 dispenser system:   $24,925
                 6 dispenser system:   $32,765
                 12 dispenser system: $56,285

            According to the California Air Pollution Control Officers  
            Association (CAPCOA), over 92% of the service stations  
            throughout California have either received or applied for air  
            district permits for the installation of the equipment.  About  
            65%, over 6,500 stations, have completed installation of EVR.

           2)Enforcement issues are being addressed already by ARB and air  
            districts.   Local air districts enforce the ARB regulations.   
            ARB recently issued an advisory urging the districts to  
            exercise their enforcement authority with "discretion and  
            restraint."

            According to CAPCOA:

               Local air districts have established mechanisms for  
               non-compliant facilities to be able to remain in  
               operation pending their timely procurement and  
               installation of compliant equipment.  In many air  
               districts, the process entails a voluntary settlement  
               agreement between the facility and the local air  
               district.  Case-by-case circumstances are considered  
               by the local air district at facility request. 

               In order to provide equity for the majority of  
               operators who were diligent in their efforts to comply  








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               and invested considerable time and money to meet the  
               deadline, there may be penalties assessed for the  
               stations that failed to meet the deadline.  The exact  
               amount of each penalty will vary from situation to  
               situation depending on several factors, but only the  
               most recalcitrant operators who absolutely refuse to  
               comply could be subject to significant penalties.   
               Where there are facts presented that mitigate  
               culpability, penalties could be very low or waived  
               completely. 

               Stations will not be tagged out of service if they  
               show diligence in their efforts to achieve compliance.  
                Diligence is demonstrated by actions including:  
               making timely application for appropriate permits,  
               entering into enforceable compliance agreements with  
               air districts or district Hearing Boards, and making  
               arrangements with appropriate contractors to install  
               the required equipment.  The tag-out enforcement  
               option will only be applied to recalcitrant operators  
               who refuse to make efforts to comply, and CAPCOA  
               expects such circumstances to be extremely rare.

           3)Bill doesn't seem to meet its own objective.   This bill is  
            intended to create a one year compliance extension for local  
            government gas stations that haven't met the April 1, 2009  
            deadline.  However, the bill wouldn't take effect until  
            January 1, 2010, eight months past the compliance deadline,  
            and would only apply for four months.  However, the author  
            intends to add an urgency clause so the bill would take effect  
            immediately upon passage and signature by the Governor.






















                                                                  AB 1384
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           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          League of California Cities

           Opposition 
           
          American Lung Association
          Breathe California
          California League of Conservation Voters
          Clean Power Campaign
          Coalition for Clean Air
          Friends of the Earth
          National Parks Conservation Association
          Natural Resources Defense Council
          Residents of Pico Rivera for Environmental Justice
          Sierra Club California
          Union of Concerned Scientists


           Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092