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:
AB 1384
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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