MEETING

STATE OF CALIFORNIA

AIR RESOURCES BOARD

BYRON SHER AUDITORIUM

SECOND FLOOR

1001 I STREET

SACRAMENTO, CALIFORNIA 95814

THURSDAY, JULY 25, 2013

9:10 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

Supervisor John Gioia

Mr. Hector De La Torre

Mayor Pro Tem Judy Mitchell

Mrs. Barbara Riordan

Supervisor Ron Roberts

Supervisor Phil Serna

Professor Daniel Sperling

STAFF

Mr. Richard Corey, Executive Officer

Mr. Alberto Ayala, Deputy Executive Officer

Ms. Edie Chang, Deputy Executive Officer

Ms. Lynn Terry, Deputy Executive Officer

Ms. La Ronda Bowen, Ombudsman

Mr. Scott Bacon, Air Pollution Specialist, MLD

Mr. Michael Benjamin, Chief, MLD

Mr. Brad Cole, Air Pollution Specialist, MLD

Ms. Lisa Macumber, Air Pollution Specialist, MSCD

Mr. Pippen Mader, Air Resources Engineer, MLD

Ms. Melissa Niederreiter, Air Pollution Specialist, Goods Movement Strategies Section, SSD

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APPEARANCES CONTINUED

STAFF

Mr. Todd Sax, Branch Chief, Air Quality Planning and Science Division

Mr. Erik White, Division Chief, Mobile Source Operations Division

ALSO PRESENT

Mr. Tom Austin, Motorcycle Industry Council

Mr. Max Baumhefner, NRDC

Mr. Damian Breen, BAAQMD/CAPCOA

Mr. Rasto Brezny, MECA

Mr. John Clements, Kings Canyon Unified School District

Mr. Daniel Davids, Plug In America

Ms. Jessica DePrimo, NSCAPCD

Mr. Steven Douglas, Alliance of Automobile Manufacturers

Mr. Sean Edgar, CleanFleets.net

Mr. Mike Ferry, California Center for Sustainable Energy

Mr. Jaime Hall, CALSTART

Mr. Nicholas Haris, AMA

Mr. Ted Harris, California Stratgis, EVI, Proterra

Mr. Henry Hogo, Assistant Deputy Executive Officer, South Coast Air Quality Management District

Mr. Mike Krausse, PG&E

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APPEARANCES CONTINUED

ALSO PRESENT

Mr. Scott Lavery, UPS

Mr. Michael Lord, Toyota

Mr. Mark Loutzenhiser, SMAQMD

Mr. Fred Minassian, South Coast AQMD

Mr. Jonathan Morrison, California New Car Dealers Association

Ms. Lindsey Myers, Yamaha

Ms. Rachael O'Brien, Union of Concerned Scientists

Mr. David Pickett, District 36 Motorcycle Sports Committee, Inc.

Mr. Raoul Renaud

Mr. Randy Roesser, Deputy Director, Fuels and Transportation Division, CEC

Mr. Seyed Sadredin, SJVAPCD

Mr. Matt Schrap, Crossroads Equipment Lease and Finance

Mr. Chris Shimoda, California Trucking Association

Ms. Angela Strand, Smith Electric Vehicles

Ms. Eileen Tutt, CaETC

Mr. Mike Watt, San Diego APCD

Mr. Daniel Witt, Tesla Motors

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INDEX

Item 13-7-2 PAGE

Chairperson Nichols 3 Executive Officer Corey 4 Staff Presentation 5 Mr. Hogo 20 Motion 22 Vote 23

Item 13-7-3

Chairperson Nichols 23 Executive Officer Corey 24 Staff Presentation 24 Mr. Brezny 48 Mr. Austin 49 Mr. Hogo 53 Mr. Haris 55 Ms. Myers 57 Mr. Picket 65 Motion 72 Vote 72

Item 13-7-5

Chairperson Nichols 73 Executive Officer Corey 74 Staff Presentation 75 Mr. Hogo 103 Mr. Breen 104 Mr. Davids 106 Mr. Schrap 109 Mr. Douglas 111 Mr. Hall 115 Ms. Strand 117 Mr. Lavery 120 Ms. Tutt 121 Mr. Baumhefner 126 Ms. DePrimo 128 Mr. Witt 129 Mr. Harris 131 Mr. Lord 133 Mr. Morrison 135 Mr. Clements 137

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INDEX (CONTINUED)

Item 13-7-5 (CONTINUED)

Ms. O'Brien 139 Mr. Krausse 141 Mr. Ferry 142 Mr. Renaud 146 Motion 162 Vote 162

Item 13-7-6

Chairperson Nichols 163 Executive Officer Corey 164 Staff Presentation 166 Mr. Sadredin 183 Mr. Minassian 186 Mr. Loutzenhiser 187 Mr. Breen 189 Mr. Watt 191 Mr. Shimoda 192 Mr. Schrap 194 Mr. Edgar 196 Motion 200 Vote 200

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PROCEEDINGS

CHAIRPERSON NICHOLS: The July 25th, 2013, public

meeting of the Air Resources Board will come to order.

Before we do the roll call, we will have the

Pledge of Allegiance. I've just asked Supervisor Serna to

lead us in pledge.

(Thereupon the Pledge of Allegiance was

Recited in unison.)

CHAIRPERSON NICHOLS: Madam Clerk, will you

please call the roll?

BOARD CLERK JENSEN: Dr. Balmes?

Ms. Berg?

BOARD MEMBER BERG: Here.

BOARD CLERK JENSEN: Mr. De La Torre?

BOARD MEMBER DE LA TORRE: Here.

BOARD CLERK JENSEN: Supervisor Gioia?

BOARD MEMBER GIOIA: Here.

BOARD CLERK JENSEN: Mayor Pro Tem 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?

BOARD MEMBER SERNA: Here.

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BOARD CLERK JENSEN: Dr. Sherriffs?

Professor Sperling?

BOARD MEMBER SPERLING: Here.

BOARD CLERK JENSEN: Chairman Nichols?

CHAIRPERSON NICHOLS: Here.

BOARD CLERK JENSEN: Madam Chair, we have a

quorum.

CHAIRPERSON NICHOLS: Thank you very much.

Welcome, everyone.

A couple of announcements before we get started

this morning.

First of all, for anyone who is not familiar with

our process, if you wish to testify and you haven't signed

up online, you need to fill out a request to speak card

that's available in the lobby or from the Clerk and to

give it to the Clerk. We prefer that you put your name on

the card, though it's not required. And if you did sign

up online to testify, you don't need to sign up again, but

you do need to check in with the Clerk just to make sure

that your name does not get removed from the list.

We do impose a three-minute time limit on

speakers. And if you haven't ever experienced this

before, it goes by really fast. So it's much better if

you don't feel like you have to go through your written

testimony, but just summarize it in your on words. We

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will get your written testimony, and we'll have an

opportunity to read it.

I want to point out the emergency exits at the

rear of the room. And we have emergency exits also here

behind the dais. In the event of an alarm ringing, we are

required to evacuate this room immediately and go down the

stairs at the back of the auditorium and out of the

building until we get the all-clear signal.

We have several regulatory items this morning.

We're also planning to break at around lunchtime. And we

will have a closed session after we finish with the item

on Proposition 1B.

So with that, I think we can start right in with

the first item, which is the adoption of regulations that

would amend the certification and test procedures for

vapor recovery equipment used at gasoline dispensing

facilities in California and on cargo tanks that deliver

gasoline to those facilities. Our vapor recover

regulations have been in place since 1975, and they've

been updated a few times since then in order to try to

either make the regulations more enforceable or to get

additional emissions reductions. And at this point, I

think I'll turn it over to Mr. Corey to begin the

presentation.

DEPUTY EXECUTIVE OFFICER COREY: All right.

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Thank you, Chairman Nichols, members of the Board.

As the Chair stated, the Board for nearly 40

years has adopted and periodically amended regulations

that control vapor emissions associated with the storage

and transfer of gasoline. These regulations apply to each

step of the gasoline distribution network, including

refineries, bulk storage facilities, cargo tanks, and

approximately 20,000 gasoline dispensing facilities

throughout Calif