2010 California Code
Health and Safety Code
Article 4. General Powers And Duties

40440.  (a) The south coast district board shall adopt rules and
regulations that carry out the plan and are not in conflict with
state law and federal laws and rules and regulations. Upon adoption
and approval of subsequent revisions of the plan, these rules and
regulations shall be amended, if necessary, to conform to the plan.
   (b) The rules and regulations adopted pursuant to subdivision (a)
shall do all of the following:
   (1) Require the use of best available control technology for new
and modified sources and the use of best available retrofit control
technology for existing sources.
   (2) Promote cleaner burning alternative fuels.
   (3) Consistent with Section 40414, provide for indirect source
controls in those areas of the south coast district in which there
are high-level, localized concentrations of pollutants or with
respect to any new source that will have a significant effect on air
quality in the South Coast Air Basin.
   (4) Provide for transportation control measures, as listed in the
plan.
   (c) The south coast district board shall adopt rules and
regulations that will assure that all its administrative practices
and the carrying out of its programs are efficient and
cost-effective, consistent with the goals of achieving and
maintaining federal and state ambient air quality standards and
achieving the purposes of this chapter.
   (d) The south coast district board shall determine what is the
best available retrofit control technology for existing electric
plants, and shall adopt rules and regulations requiring the use of
the best available retrofit control technology in existing electric
plants, if the board finds and determines that to do so is necessary
to carry out the plan.
   (e) In adopting any regulation, the south coast district board
shall comply with Section 40703.


40440.1.  (a) A market-based incentive program adopted pursuant to
Section 39616 in the south coast district shall achieve emission
reductions across a spectrum of sources by allowing for trading of
emissions trading units for quantifiable reductions in emissions from
a significant number of different sources, including mobile, area,
and stationary, which are within the district's jurisdiction or which
the district is authorized to include in a market-based emissions
trading program.
   (b) The program may be, but is not required to be, initiated with
only a limited number of sources, but, as soon as practical after
adoption of the initial program, the district shall amend the program
to allow the trading of reductions among the sources initially
included in the program and mobile, area, and other stationary
sources.
   (c) The intent of this section is to allow, not to require, the
trading of reductions among a variety of sources. Nothing in this
section confers any new authority on the district to regulate mobile,
indirect, or areawide sources or to require those sources to
participate in a market-based incentive program.



40440.2.  In addition to, and notwithstanding the requirements of,
Section 39616, all of the following shall be implemented as part of
the south coast district's market-based incentive program, the
Regional Clean Air Incentives Market, also known as RECLAIM:
   (a) (1) On or before July 1, 1998, the south coast district staff
shall provide to the south coast district board a progress report
based on the annual audits specified in subdivision (c). The progress
report shall meet all of the following requirements:
   (A) The data in the report for the nitrogen oxides RECLAIM program
shall be aggregated by three-digit SIC code and facility emission
rate to the extent feasible. The categories of emission rates shall
be under 4, 4 to 10, inclusive, 11 to 100, inclusive, and over 100
tons per year.
   (B) The data in the report for the sulfur oxides RECLAIM program
shall be aggregated by three-digit SIC code only to the extent
feasible.
   (C) In preparing the report, the south coast district shall
publish in an appendix all final data and model outputs, except that
it shall keep confidential any facility-specific information that is
obtained by either the south coast district, or any independent
contractor retained by the south coast district, in the course of
preparing the report.
   (D) Any publication of the data obtained from facilities by the
south coast district shall be in aggregate form only, as specified in
this subdivision. The south coast district board shall make the raw
data available to the public.
   (2) The south coast district board shall receive public comment on
the progress report.
   (3) The south coast district shall not lower the emission
threshold for mandatory participation in the RECLAIM program for
nitrogen oxides and sulfur oxides from the threshold that was
established on October 15, 1993, until the progress report is
completed and a public hearing on the report has been held, unless
the south coast district board finds, after a public hearing, that
there will be no adverse environmental or economic effects resulting
from a lowered emission threshold.
   (b) On or before July 1, 1997, an advisory committee shall be
selected by the south coast district board. The advisory committee
shall serve for a maximum of one year, or until the report required
by subdivision (d) is made to the south coast district board,
whichever is later. The advisory committee shall be composed of the
following members:
   (1) One representative from each of the following:
   (A) A facility that participates in one or both of the
market-based incentive programs and emits more than 100 tons of
nitrogen oxides or sulfur oxides annually.
   (B) A facility that emits from 11 to 100 tons, inclusive, of
nitrogen oxides or sulfur oxides annually.
   (C) A facility that emits less than 10 tons of nitrogen oxides or
sulfur oxides annually.
   (2) One representative from the south coast district staff, one
representative from the state board, and one representative from the
Environmental Protection Agency.
   (3) One representative from a financial institution.
   (4) One representative from an academic institution.
   (5) One representative from a market commodities or securities
trading institution.
   (6) One representative from an economic analysis research
institution.
   (7) Two representatives from environmental organizations.
   (8) One representative from each of the investor-owned energy
utilities serving the south coast district, and one representative
from a municipal energy utility representing the City of Los Angeles.
   (9) One representative from a technical contractor specializing in
installation and certification of emissions monitoring equipment.
   (10) One representative from an oil company.
   (11) One representative from the aerospace industry.
   (c) In addition to any other information required by subdivision
(e) of Section 39616, the south coast district shall annually perform
a detailed assessment of the program audit findings specified in
paragraph (1) of subdivision (b) of south coast district Rule 2015,
as adopted October 15, 1993.
   (d) The advisory committee shall conduct a peer review of the
progress report to the south coast district board required pursuant
to subdivision (a). The advisory committee shall present its peer
review conclusions to the south coast district board as an
independent report concurrently with the staff progress report. The
advisory committee may request staff support from the south coast
district in conducting its peer review and preparing the report.




40440.3.  For the purpose of complying with emissions monitoring
requirements, the south coast district shall allow sources the option
of using an electronic or computer data storage system. The district
may require the electronic or computer data storage system to have
the same degree of signal path security as with existing strip chart
recorder systems.



40440.5.  (a) Notice of the time and place of a public hearing of
the south coast district board to adopt, amend, or repeal any rule or
regulation relating to an air quality objective shall be given not
less than 30 days prior thereto and, notwithstanding subdivision (b)
of Section 40725, shall be published in each county in the south
coast district in accordance with the requirements of Section 6061 of
the Government Code. The period of notice shall commence on the
first day of publication.
   (b) In addition to the requirements of subdivision (b) of Section
40725, notice shall be mailed to every person who filed a written
request for notice of proposed regulatory action with the south coast
district, every person who requested notice for, or registered at,
the workshop, if any, held in connection with the development of the
proposed rule or regulation, and any person the south coast district
believes to be interested in the proposed rule or regulation. The
inadvertent failure to mail notice to any particular person as
provided in this subdivision shall not invalidate any action taken by
the south coast district board.
   (c) In addition to the summary description of the effect of the
proposal, as required by subdivision (b) of Section 40725, the notice
shall include the following:
   (1) A description of the air quality objective that the proposed
rule or regulation is intended to achieve and the reason or reasons
for the proposed rule or regulation.
   (2) A list of supporting information, documents, and other
materials relevant to the proposed rule or regulation, prepared by
the south coast district or at its direction, any environmental
assessment, and the name, address, and telephone number of the
district officer or employee from whom copies of the materials may be
obtained.
   (3) A statement that a staff report on the proposed rule or
regulation has been prepared, and the name, address, and telephone
number of the district officer or employee from whom a copy of the
report may be obtained. Whenever the proposed rule or regulation will
significantly affect air quality or emissions limitations, the staff
report shall include the full text of the proposed rule or
regulation, an analysis of alternative control measures, a list of
reference materials used in developing the proposed rule or
regulation, an environmental assessment, exhibits, and draft findings
for consideration by the south coast district board pursuant to
Section 40727. Further, if an environmental assessment is prepared,
the staff report shall also include social, economic, and public
health analyses.
   (d) Regardless of whether a workshop was previously conducted on
the subject of the proposed rule or regulation, the south coast
district may conduct one or more supplemental workshops prior to the
public hearing on the proposed rule or regulation.
   (e) If the south coast district board makes changes in the text of
the proposed rule or regulation that was the subject of notice given
pursuant to this section, further consideration of the rule or
regulation shall be governed by Section 40726.
   (f) This section is not intended to change, and shall not be
construed as changing, any entitlement or protection conferred by the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code).



40440.7.  (a) Whenever the south coast district intends to propose
the adoption, amendment, or repeal of a rule or regulation that will
significantly affect air quality or emissions limitations, the south
coast district shall conduct one or more public workshops.
   (b) Notice of the time and place of the first workshop shall be
given not less than 75 days prior to the meeting at which the south
coast district board will consider the proposed rule or regulation by
publication in each county in the south coast district pursuant to
Section 6061 of the Government Code and by mail to every person who
filed a written request for notice of proposed regulatory action with
the south coast district and any person the south coast district
believes to be interested in attending the workshop.
   (c) The notice shall include at least the following:
   (1) A description of the air quality objective to be discussed.
   (2) A statement that the workshop is being held for the purposes
of soliciting information and suggestions from the public on
achieving the air quality objective.
   (3) A request for submittal of any documents, studies, and reports
that may be relevant to the subject of the workshop, and the name,
address, and telephone number of the district officer or employee to
whom they should be sent.
   (4) A list of supporting information and documents, including a
preliminary staff report, prepared by the south coast district or at
its direction, and other materials relevant to the subject of the
workshop that are available, and the name, address, and telephone
number of the district officer or employee from whom copies of the
materials may be obtained.
   (d) If the south coast district thereafter proposes the adoption,
amendment, or repeal of a rule or regulation that was the subject of
a workshop, the south coast district shall respond to all written
comments submitted during the workshop in preparing the environmental
assessment on the proposed rule or regulation.
   (e) The time and place for a workshop shall be selected on the
basis of affording an opportunity to participate to the greatest
number of persons expected to be interested in the workshop.
   (f) The requirements of this section are not intended to restrict
the south coast district in conducting other public workshops and
other meetings for the exchange of information under circumstances
not specifically addressed in this section.
   (g) A workshop or other meeting shall not constitute consideration
of a "regulatory measure" within the meaning of Section 40923.
   (h) This section is not intended to change, and shall not be
construed as changing, any entitlement or protection conferred by the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code).



40440.8.  (a) Whenever the south coast district intends to propose
the adoption, amendment, or repeal of a rule or regulation that will
significantly affect air quality or emissions limitations, the
district, to the extent data are available from the district's
regional economic model or other sources, shall perform an assessment
of the socioeconomic impacts of the adoption, amendment, or repeal
of the rule or regulation.
   (b) For the purposes of this section, "socioeconomic impact" means
only the following:
   (1) The type of industries affected by the rule or regulation.
   (2) The impact of the rule or regulation on employment and the
economy in the south coast basin attributable to the adoption of the
rule or regulation.
   (3) The range of probable costs, including costs to industry, of
the rule or regulation.
   (4) The availability and cost-effectiveness of alternatives to the
rule or regulation, as determined pursuant to Section 40922.
   (5) The emission reduction potential of the rule or regulation.
   (6) The necessity of adopting, amending, or repealing the rule or
regulation in order to attain state and federal ambient air standards
pursuant to Chapter 10 (commencing with Section 40910).



40440.10.  The south coast district board, prior to approving any
proposed revision to the best available control technology guidelines
developed by the south coast district that amends any policy or
implementation procedure for determining the best available control
technology, shall hold a public hearing on the proposed revision.




40440.11.  (a) In establishing the best available control technology
that is more stringent than the lowest achievable emission rate
pursuant to federal law for a proposed new or modified source, the
south coast district shall consider only control options or emission
limits to be applied to the basic production or process equipment
existing in that source category or a similar source category.
   (b) In establishing the best available control technology for a
source category or determining the best available control technology
for a particular new or modified source, when a particular control
alternative for one pollutant will increase emissions of one or more
other pollutants, the south coast district's cost-effectiveness
calculation for that particular control alternative shall include the
cost of eliminating or reducing the increases in emissions of the
other pollutants as required by the south coast district.
   (c) Prior to revising the best available control technology
guideline for a source category to establish an emission limit that
is more stringent than the existing best available control technology
guideline for that source category, the south coast district shall
do all of the following:
   (1) Identify one or more potential control alternatives that may
constitute the best available control technology, as defined in
Section 40405.
   (2) Determine that the proposed emission limitation has been met
by production equipment, control equipment, or a process that is
commercially available for sale, and has achieved the best available
control technology in practice on a comparable commercial operation
for at least one year, or a period longer than one year if a longer
period is reasonably necessary to demonstrate the operating and
maintenance reliability, and costs, for an operating cycle of the
production or control equipment or process.
   (3) Review the information developed to assess the
cost-effectiveness of each potential control alternative. For
purposes of this paragraph, "cost-effectiveness" means the annual
cost, in dollars, of the control alternative, divided by the annual
emission reduction potential, in tons, of the control alternative.
   (4) Calculate the incremental cost-effectiveness for each
potential control option. To determine the incremental
cost-effectiveness under this paragraph, the district shall calculate
the difference in the annual dollar costs, divided by the difference
in the annual emission reduction between each progressively more
stringent control alternative, as compared either to the next less
expensive control alternative, or to the current best available
control technology, whichever is applicable.
   (5) Place the best available control technology revision for a
source category proposed under this subdivision on the calendar of a
regular meeting agenda of the south coast district board, for its
acceptance or further action, as the board determines.
   (d) If the proposed control option is more stringent than the
lowest achievable emission rate for a source category pursuant to
federal law, the south coast district shall not establish an emission
limit for best available control technology that is conditioned on
the use of a particular control option unless the incremental
cost-effectiveness value of that option is less than the district's
established incremental cost-effectiveness value for each pollutant.
Notwithstanding any other provision of law, the south coast district
shall have the discretion to revise incremental cost-effectiveness
value for each pollutant, provided it holds a public hearing pursuant
to Section 40440.10 prior to revising the value.
   (e) After the south coast district determines what is the best
available control technology for a source, it shall not change that
determination for that application for a period of at least one year
from the date that an application for authority to construct was
determined to be complete by the district. For major capital projects
in excess of ten million dollars ($10,000,000), after the applicant
has met and conferred with the south coast district in a
preapplication meeting, the south coast district executive officer
may approve existing best available control technology for the
project, for a longer time period as long as the final design is
consistent with the initial, preliminary project design presented in
the preapplication meeting.



40440.13.  (a) Notwithstanding the decision of the court in Natural
Resources Defense Council v. South Coast Air Quality Management
District (Super. Ct. Los Angeles County, 2007, No. BS 110792), the
south coast district may issue permits in reliance on, and in
compliance with, south coast district Rule 1304, as amended on June
14, 1996, and Rule 1309.1, as amended May 3, 2002, for essential
public services, as defined in subdivision (m) of Rule 1302, as
amended December 6, 2002.
   (b) Nothing in this section affects the decision in the case
described in subdivision (a) concerning the adoption, readoption, or
amendment, or environmental review, of south coast district Rule
1315.
   (c) (1) In implementing subdivision (a), the south coast district
shall rely on the offset tracking system used prior to the adoption
of Rule 1315 of the south coast district until a new tracking system
is approved by the United States Environmental Protection Agency and
is in effect, at which point that new system shall be used by the
south coast district.
   (2) In addition to using the prior offset tracking system, the
district shall also make use of any emission credits that have
resulted from emission reductions and shutdowns from minor sources
since 1990. The district shall make any necessary submissions to the
United States Environmental Protection Agency with regard to the
crediting and use of emission reductions and shutdowns from minor
sources.
   (d) This section shall remain in effect only until May 1, 2012,
and as of that date is repealed, unless a later enacted statute, that
is enacted before May 1, 2012, deletes or extends that date.



40440.14.  (a) The executive officer of the south coast district,
upon finding that the eligible electrical generating facility
proposed for certification by the State Energy Resources Conservation
and Development Commission meets the requirements of the applicable
new source review rule and all other applicable district regulations
that must be met under Section 1744.5 of Title 20 of the California
Code of Regulations, shall credit to the south coast district's
internal emission credit accounts and transfer from the south coast
district's internal emission credit accounts to eligible electrical
generating facilities emission credits in the full amounts needed to
issue permits for eligible electrical generating facilities to meet
requirements for sulfur oxides (SOx) and particulate matter (PM2.5
and PM10) emissions.
   (b) (1) In implementing subdivision (a), the south coast district
shall rely on the offset tracking system used prior to the adoption
of Rule 1315 of the South Coast District until a new tracking system
is approved by the United States Environmental Protection Agency and
is in effect, at which point that new system shall be used by the
south coast district.
   (2) In addition to using the prior offset tracking system, the
district shall also make use of any emission credits that have
resulted from emission reductions and shutdowns from minor sources
since 1990. The district shall make any necessary submissions to the
United States Environmental Protection Agency with regard to the
crediting and use of emission reductions and shutdowns from minor
sources.
   (c) Within 60 days of the effective date of this section, for each
eligible electrical generating facility, the south coast district
shall report to the State Energy Resources Conservation and
Development Commission the emission credits to be credited and
transferred pursuant to subdivision (a). The State Energy Resources
Conservation and Development Commission shall determine whether the
emission credits to be credited and transferred satisfy all
applicable legal requirements. In the exercise of its regulatory
responsibilities under its power facility and site certification
authority, the State Energy Resources Conservation and Development
Commission shall not certify an eligible electrical generation
facility if it determines that the credit and transfer by the south
coast district do not satisfy all applicable legal requirements.
   (d) In order to be eligible for emission reduction credits
pursuant to this section, an electrical generating facility shall
meet all of the following requirements:
   (1) Be subject to the permitting jurisdiction of the State Energy
Resources Conservation and Development Commission.
   (2) Have a purchase agreement, executed on or before December 31,
2008, to provide electricity to a public utility, as defined in
Section 216 of the Public Utilities Code, subject to regulation by
the Public Utilities Commission, for use within the Los Angeles Basin
Local Reliability Area.
   (3) Be under the jurisdiction of the south coast district, but not
within the South Coast Air Basin.
   (e) The executive officer shall not transfer emission reduction
credits to an electrical generating facility pursuant to this section
until the receipt of payment of the mitigation fees set forth in the
south coast district's Rule 1309.1, as adopted on August 3, 2007.
The mitigation fees shall only be used for emission reduction
purposes. The south coast district shall ensure that at least 30
percent of the fees are used for emission reductions in areas within
close proximity to the electrical generating facility and at least 30
percent are used for emission reductions in areas designated as
"Environmental Justice Areas" in Rule 1309.1.
   (f) This section shall be implemented in a manner consistent with
federal law, including the Clean Air Act (42 U.S.C. Sec. 7401 et
seq.).
   (g) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.


40441.  After adoption of the plan, the south coast district shall
have the responsibility for securing the cooperation of other public
entities in the implementation of the plan, including all programs,
plans, and projects relating to or affecting air quality within the
south coast district.
   The south coast district board may adopt such rules and
regulations as do not conflict with state and federal laws for the
coordination of local, state, and federal programs affecting air
quality.



40442.  If the plan is not adopted or approved in compliance with
the schedule set forth in Section 40463, the powers and duties of the
south coast district board with respect to air quality control shall
not be diminished or otherwise affected by such failure to adopt or
approve the plan.


40443.  The south coast district board shall adopt revised and
updated nonvehicular source emission limitations for inclusion in the
state's implementation plan.



40444.  The south coast district board shall adopt the necessary
rules and regulations to implement the Air Pollution Emergency Plan
developed by the state board.



40445.  Pursuant to its authority under Section 40444 to implement
the Air Pollution Emergency Plan of the state board, the south coast
district board may adopt rules and regulations to limit the operation
of motor vehicles within the south coast district during the period
when an air pollution emergency has been called as defined by that
plan. Such rules and regulations shall not apply to the operation of
authorized emergency vehicles, as defined in Section 165 of the
Vehicle Code, or repair vehicles of a public utility.



40445.5.  (a) The south coast district board shall conduct hearings
on the adoption and implementation of intermittent transportation
controls which shall be applicable, upon order of the south coast
district board, during periods in the months of June to October,
inclusive, when an air pollution emergency, as defined in the Air
Pollution Emergency Plan of the state board, has been called pursuant
to the authority of the south coast district under Section 40444 to
implement that plan.
   (b) The south coast district board shall conduct the hearings
pursuant to subdivision (a) to define and designate the necessary
transportation controls in cooperation with representatives of
industry, transportation, and local governments in the south coast
district.
   (c) The south coast district board shall incorporate its findings
and determinations into the south coast district air quality
management plan.



40446.  If requested by the state board, the south coast district
board may assist in the administration and enforcement of any state
statute establishing an inspection program for motor vehicles with
respect to their air pollution emissions and their air pollution
control devices or systems and any rules and regulations adopted
pursuant to such a statute.



40447.  The south coast district board may request the state board
to investigate the emission reduction capabilities of any motor
vehicle pollution control devices which have not been previously
tested by the state board.


40447.5.  Notwithstanding any other provision of law, the south
coast district board may adopt regulations that do all of the
following:
   (a) Require operators of public and commercial fleet vehicles,
consisting of 15 or more vehicles under a single owner or lessee and
operating substantially in the south coast district, when adding
vehicles to or replacing vehicles in an existing fleet or purchasing
vehicles to form a new fleet, to purchase vehicles which are capable
of operating on methanol or other equivalently clean burning
alternative fuel and to require that these vehicles be operated, to
the maximum extent feasible, on the alternative fuel when operating
in the south coast district. Notwithstanding Section 39021, as used
in this subdivision, the term "commercial fleet vehicles" is not
limited to vehicles that are operated for hire, compensation, or
profit. No regulation adopted pursuant to this paragraph shall apply
to emergency vehicles operated by local law enforcement agencies,
fire departments, or to paramedic and rescue vehicles until the south
coast district board finds and determines that the alternative fuel
is available at sufficient locations so that the emergency response
capabilities of those vehicles is not impaired.
   (b) Encourage and facilitate ridesharing for commuter trips into,
out of, and within the south coast district.
   (c) Prohibit or restrict the operation of heavy-duty trucks during
hours of heaviest commuter traffic on freeways and other high
traffic volume highways. In adopting regulations pursuant to this
paragraph, the south coast district shall consult with the Department
of Transportation and the Department of the California Highway
Patrol and the transportation commission of each county in the south
coast district. No regulation adopted pursuant to this paragraph
shall, however, prohibit or restrict the operation of any heavy-duty
truck engaged in hauling solid or hazardous waste or a toxic
substance if that truck is required to be operated at certain times
of day pursuant to an ordinance adopted for the protection of public
health or safety by a city or county or any heavy-duty truck required
to be operated at certain times of the day pursuant Section 25633 of
the Business and Professions Code.



40447.6.  (a) Notwithstanding any other provision of law, the south
coast district board may, subject to the approval of the state board,
adopt regulations that specify the composition of diesel fuel
manufactured for sale in the south coast district. These regulations
shall impose requirements at least as stringent as those of the state
board. No regulation shall be adopted pursuant to this section until
the south coast district has evaluated the safety of any fuel of a
particular composition proposed to be required by the regulations.
This section shall become operative January 1, 1989.
   (b) In adopting regulations pursuant to this section, the south
coast district board shall consider the effect of the regulation on
emissions, public health, ambient air quality, and visibility in the
south coast air basin; the technological feasibility and economic
costs and benefits of the regulation compared to other available
measures; and the availability of low emission and alternative fueled
vehicles and alternative fuels.


40448.  (a) The south coast district shall maintain an office of
public advisor and small business assistance to provide
administrative and technical services and information to small
businesses and the public. The executive officer shall appoint the
public advisor.
   (b) The office shall facilitate and encourage compliance by small
businesses with the rules and regulations of the south coast
district, assist small businesses in applying for permits and
variances, and facilitate the participation of small businesses in
the development of rules and regulations and in other proceedings of
the south coast district. The office shall provide information on the
economic impact of the rules and regulations of the south coast
district on small businesses in the south coast district. The office
shall make available to small businesses information regarding
alternative processes, cleaner fuels and solvents, and low-cost
financing for air pollution control equipment. Upon receiving
findings and recommendations from the public advisor, the south coast
district board shall endeavor to coordinate compliance schedules
with the availability to small businesses of financing for pollution
control equipment and other measures to reduce emissions.
   (c) The office shall assure effective communication with
interested groups and the public through means such as maintaining a
staffing level adequate to respond to requests for its services and
providing toll-free telephone lines. The office shall facilitate
effective participation by all interested groups and the public in
the development of rules and regulations and the plan and in the
discharge of other responsibilities of the south coast district by
assuring that, consistent with the express requirements of this
chapter, Chapter 6.5 (commencing with Section 40725), Chapter 8
(commencing with Section 40800), and Chapter 10 (commencing with
Section 40910), timely and complete notice of all proceedings of the
south coast district board and the hearing board is disseminated to
all interested groups and the public. Upon request, the office shall
advise interested groups and the public as to effective ways of
participating in these proceedings, provide more extensive
information on any item on an agenda, and make referrals to sources
of expert advice and assistance on the district staff and elsewhere.
Upon request, the office shall obtain and make available the public
record of any aspect of, or particular action taken at, these
proceedings. The office shall recommend to the south coast district
board and the hearing board additional measures to assure open
consideration and public participation in all proceedings.
   (d) As used in this section:
   (1) "Public" has the same meaning as "person," as defined in
Section 39047.
   (2) "Proceedings" means any hearing, workshop, conference, or
meeting which is held or conducted by the south coast district board,
the hearing board, any committee of either board, or district staff,
at which attendance by the public is allowed or required.



40448.5.  (a) The south coast district shall establish an Office of
Technology Advancement to administer the clean-burning fuels program
established pursuant to this section. The program shall encourage
projects that increase the utilization of clean-burning fuels that
reduce public health hazards from air pollution. The south coast
district shall coordinate the program with the state board, the State
Energy Resources Conservation and Development Commission, and other
appropriate state and federal agencies and private organizations that
are conducting activities to promote the use of clean-burning fuels.
   (b) After holding at least two public hearings to solicit public
comment on a clean-burning fuels program, the south coast district
shall annually adopt a program of activities for increasing the use
of clean-burning fuels in the transportation and stationary source
sectors.
   (c) The program shall include an identification of potential
funding sources, including, but not limited to, state and federal
funds; private-sector funds; revenues from district permit, variance,
and emission fees; proceeds from district penalty settlements and
judgments; and funds from other sources under the jurisdiction of the
south coast district.
   (d) In developing its program, the south coast district shall
consider promoting projects in the transportation and stationary
source sectors utilizing methanol fuel, fuel cells, liquid petroleum
gas, natural gas, including compressed natural gas, combination
fuels, synthetic fuels, electricity, including electric vehicles, and
other clean-burning fuels.
   (e) When considering which clean fuels projects to promote, the
south coast district shall consider, among other factors, the current
and projected economic costs and availability of fuels, the
cost-effectiveness of emission reductions associated with clean fuels
compared with other pollution control alternatives, the use of new
pollution control technologies in conjunction with traditional fuels
as an alternative means of reducing emissions, potential effects on
public health, ambient air quality, visibility within the region, and
other factors determined to be relevant by the south coast district.
   (f) When implementing clean fuels projects, the south coast
district shall consider limiting the use of clean fuels to specific
seasons, time of day, and locations if those limitations are found by
the district to further the goals of the program.
   (g) The south coast district shall coordinate the clean-burning
fuels program with transportation control measures adopted pursuant
to paragraph (4) of subdivision (b) of Section 40440 to reduce
traffic congestion, air pollution, and motor vehicle fuel
consumption.



40448.5.1.  (a) Prior to adopting the program specified in
subdivision (b) of Section 40448.5 and prior to expending any funds
for any research, development, or demonstration program or project
relating to vehicles or vehicle fuels, the south coast district shall
do both of the following:
   (1) Adopt and include in the program a plan describing any
proposed expenditure that sets forth the expected costs and
qualitative as well as quantitative benefits of the proposed program
or project.
   (2) Find that the proposed program and projects funded as part of
the program will not duplicate any other past or present program or
project funded by the state board, the State Energy Resources
Conservation and Development Commission, an air quality management
district or air pollution control district, a public transit district
or authority within the geographic jurisdiction of the south coast
district, the San Diego Transit Corporation, the North County Transit
District, the Sacramento Regional Transit District, the
Alameda-Contra Costa Transit District, the San Francisco Bay Area
Rapid Transit District, the Santa Barbara Metropolitan Transit
District, the Los Angeles Department of Water and Power, the
Sacramento Municipal Utility District, the Pacific Gas and Electric
Company, the Southern California Gas Company, the Southern California
Edison Company, the San Diego Gas and Electric Company, or the
Office of Mobile Sources within the Environmental Protection Agency.
This paragraph is not intended to prevent funding for programs or
projects jointly funded with another public or private agency where
there is no duplication.
   (b) (1) The Office of Technology Advancement shall provide notice
to interested parties and the public at least 30 days prior to the
annual public hearing at which the south coast district board or a
committee of the board takes action to approve the clean-burning
fuels program.
   (2) For the purpose of this subdivision, "interested parties"
includes groups involved in research, development, and application of
clean fuels technologies; public health and environmental
organizations with expertise in air pollution related diseases and
alternative energy technologies; relevant media; legislators, members
of the county board of supervisors, and members of any city council
that represent territory within the south coast district; and any
member of the general public who has expressed interest in the
program.
   (c) (1) The south coast district shall establish an advisory group
to make recommendations to the south coast district board regarding
the clean-burning fuels program, technology advancement, and
pollution reduction. The advisory group shall make recommendations
regarding the most cost-effective projects that advance and implement
clean fuels technology and improve public health.
   (2) The advisory group shall consist of 13 members with expertise
in either clean fuels technology and policy or public health, or
both. The members shall be appointed from scientific, academic,
entrepreneurial, environmental, and public health communities.
   (3) The members of the advisory group shall adopt
conflict-of-interest guidelines that prohibit a member from
advocating an expenditure involving a project in which the member has
a professional or an economic interest.
   (4) The south coast district shall consult with the advisory group
regarding approval of the annual report required by subdivision (d).
The results of that consultation shall be provided to the south
coast district board prior to its approval of the report.
   (d) Notwithstanding Section 7550.5 of the Government Code, on or
before March 31 of each year that the clean-burning fuels program is
in operation, the south coast district shall prepare and submit to
the office of the Legislative Analyst and to the committees of the
Legislature responsible for improving air quality a report that, at a
minimum, includes all of the following:
   (1) A description of the core technologies that the south coast
district considers critical to ensure the attainment and maintenance
of national and state ambient air quality standards and a description
of the efforts made to overcome barriers to commercialization of
those technologies.
   (2) An analysis of the impact of the south coast district's
clean-burning fuels program on the private sector and on research,
development, and commercialization efforts by major automobile and
energy firms, as determined by the district.
   (3) A description of clean-burning fuels projects funded by the
south coast district, including a list of recipients, subcontractors,
cofunders, and matching state or federal funds, and a description of
expected and actual results of each project in advancing and
implementing clean fuels technology and improving public health.
   (4) The title and purpose of all projects undertaken pursuant to
the clean-burning fuels program, the names of the contractors and
subcontractors involved in each project, and the amount of money
expended for each project.
   (5) A summary of the actual progress made toward the goals of the
clean-burning fuels program.
   (6) Funding priorities identified for the next fiscal year and
relevant audit information for previous, current, and future fiscal
years covered by the report.
   (e) Within 120 days from the date of the conclusion of a program
or project subject to subdivision (a) that is funded by the south
coast district, the south coast district shall issue a public report
that sets forth the actual costs of the program or project, the
results achieved and how they compare with expected costs and
benefits determined pursuant to paragraph (1) of subdivision (a), and
any problems that were encountered by the program or project.
   (f) Notwithstanding any other provision of law, the south coast
district may recover the costs of implementing this section from the
revenues it receives for alternative fuel research, development, and
demonstration pursuant to Section 9250.11 of the Vehicle Code.



40448.6.  The Legislature hereby finds and declares all of the
following:
   (a) It is necessary to increase the availability of financial
assistance to small businesses that are subject to the rules and
regulations of the south coast district, in order to minimize
economic dislocation and adverse socioeconomic impacts.
   (b) It is in the public interest that a portion of the funds
collected by the south coast district from violators of air pollution
regulations be allocated for the purpose of guaranteeing or
otherwise reducing the financial risks of providing financial
assistance to small businesses which face increased borrowing
requirements in order to comply with air pollution control
requirements.
   (c) Public agencies and private lenders have a variety of methods
available for providing financing assistance to small businesses and
other employers, including taxable bonds, composite or pooled
financing instruments, loan guarantees, and credit insurance, which
could be utilized in combination with the penalties collected by the
south coast district to expand the availability and reduce the cost
of financing assistance.
   (d) The California Pollution Control Financing Authority has funds
set aside from previous bond issues, which could be used to
guarantee the issuance of bonds or other financing for small
businesses for the purchase and installation of pollution control
equipment.
   (e) The Business, Transportation and Housing Agency, through the
small business financial development corporations established
pursuant to Chapter 1 (commencing with Section 14000) of Part 5 of
Division 3 of Title 1 of the Corporations Code, has the ability to
provide state loan guarantees and technical assistance to small
businesses needing financial assistance.
   (f) The Job Training Partnership Division of the Employment
Development Department makes funds available for job training
programs, including funds for dislocated workers, through the federal
Job Training Partnership Act (29 U.S.C. Sec. 1501 et seq.).
   (g) It is the policy of the state that the Job Training
Partnership Division of the Employment Development Department, in
cooperation with the districts and the state board, are encouraged to
provide job training programs for workers who, as determined by the
department or the local private industry council, have been laid off
or dislocated as a result of actions resulting from air quality
regulations.
   (h) It is the policy of the state that the California Pollution
Control Financing Authority and other state agencies implementing
small business assistance programs, in cooperation with the districts
and the state board, are encouraged to provide technical and
financial assistance to small businesses to facilitate compliance
with air quality regulations.



40448.8.  (a) As used in this section, "small business" has the same
meaning as defined by the federal Small Business Administration,
except that no stationary source which is a major source, as defined
by applicable provisions of the federal Clean Air Act (42 U.S.C. Sec.
7661(2)), is a small business.
   (b) The south coast district shall establish a small business
technical and compliance assistance program. The program shall
include all of the following components:
   (1) Mechanisms for developing, collecting, and coordinating
information concerning air quality compliance methods and
technologies for small businesses.
   (2) A program which assists small businesses in determining
applicable requirements, applying for permits, and petitioning for
variances.
   (3) Mechanisms to refer small businesses to qualified compliance
auditors, or, at the option of the district, to provide compliance
audits of the operations of those businesses.
   (4) Mechanisms to assist small businesses with air pollution
control and air pollution prevention by providing information
concerning alternative technologies, process changes, products, and
methods of operation that reduce air pollution.
   (5) Mechanisms to provide small businesses with information
regarding financing for air pollution control equipment.
   (6) Procedures to consider requests of small businesses for
modification, as authorized by district regulations, of any work
practice or technological method of compliance.
   (7) Programs to encourage lawful cooperation among small
businesses and other persons to further compliance with air quality
regulations.
   (8) Mechanisms to assure that small businesses receive notice of
the assistance available pursuant to this section.



40449.  (a) No provision of this chapter is a limitation on the
power of any city or county included, in whole or in part, within the
south coast district to adopt any ordinance with respect to air
pollution control which is stricter than the rules and regulations
adopted by the south coast district board and not in conflict
therewith. The south coast district board shall enforce any such
ordinance.
   (b) At the request of the governing body of any city or county
included, in whole or in part, within the south coast district, the
south coast district board may make available, on a temporary basis,
the necessary personnel, equipment, and services to assist in
adopting any ordinance stricter than the rules and regulations
adopted by the south coast district.



40450.  Except as provided in Section 40449 regarding the adoption
of stricter orders, rules, and regulations than those of the south
coast district board, the board of supervisors of any county
included, in whole or in part, within the south coast district shall
have no authority, with respect to the control of air pollution in
that part of the county included within the south coast district.



40451.  (a) The south coast district shall use the Pollutant
Standards Index developed by the United States Environmental
Protection Agency and shall report and forecast pollutant levels
daily for dissemination in the print and electronic media. Commencing
July 1, 2001, the south coast district shall also include in its
report and forecast levels of PM2.5 in excess of the 24-hour federal
ambient air standard, as adopted in July 1997, or any standard
adopted by the United States Environmental Protection Agency that
succeeds that standard.
   (b) Using existing communication facilities available to it, the
south coast district shall notify all schools and, to the extent
feasible and upon request, daycare centers in the South Coast Air
Basin whenever any federal primary ambient air quality standard is
predicted to be exceeded. Commencing July 1, 2001, using
communication facilities available to it, the south coast district
shall also notify all schools in the South Coast Air Basin when the
ambient level of PM2.5 is predicted to exceed the 24-hour federal
ambient air standard, as adopted in July 1997, or any standard
adopted by the United States Environmental Protection Agency that
succeeds that standard.
   (c) Whenever it becomes available, the south coast district shall
disseminate to schools, amateur adult and youth athletic
organizations, and all public agencies operating parks and
recreational facilities in the south coast district the latest
scientific information and evidence regarding the need to restrict
exercise and other outdoor activities during periods when federal
primary air quality standards and the 24-hour federal ambient air
standard for PM2.5, as adopted in July 1997, or any standards adopted
by the United States Environmental Protection Agency that succeed
those standards, are exceeded.
   (d) Once every two months and annually, the south coast district
shall report on the number of days and locations that federal and
state ambient air quality standards were exceeded. Commencing July 1,
2001, the south coast district shall also include in that report the
number of days and locations on and at which the 24-hour federal
ambient air standard for PM2.5, as adopted in July 1997, or any
standard adopted by the United States Environmental Protection Agency
that succeeds that standard, is exceeded.



40451.5.  On or before January 1, 2001, the south coast district
shall revise its forecasting models to allow the district to predict,
using state-of-the-science techniques, when the 24-hour federal
ambient air standard for PM2.5, as adopted in July 1997, or any
standard adopted by the United States Environmental Protection Agency
that succeeds that standard, may be expected to be exceeded.



40452.  The south coast district shall submit an annual report to
the state board and the Legislature summarizing its regulatory
activities for the preceding calendar year. The report shall include
all of the following:
   (a) A summary of each major rule and rule amendment adopted by the
south coast district board. The summary shall include emission
reductions to be accomplished by each rule or regulation; the cost
per ton of emission reduction to be achieved from each rule or
regulation; other alternatives that were considered through the
environmental assessment process; the cost per ton of comparable
emission reductions that could have been achieved from each
alternative; a statement of the reason why a given alternative was
chosen; the conclusions and recommendations of the district's
socioeconomic analysis, including any evaluations of employment
impacts; and the source of funding for the rule or regulation. For
the purposes of this subdivision, a major rule or rule amendment is
one that is intended to significantly affect air quality or that
imposes emission limitations.
   (b) The number of permits to operate or to construct, by type of
industry, that are issued and denied, and the number of permits to
operate that are not renewed.
   (c) Data on emission offset transactions and applications, by
pollutant, during the previous fiscal year, including an accounting
of the number of applications for permits for new or modified sources
that were denied because of the unavailability of emission offsets.
   (d) The district's forecast of budget and staff increases proposed
for the following fiscal year, and projected for the next two fiscal
years. Budget and staff increases shall be related to existing
programs and rules, and to new programs or rules to be adopted during
the following years. The budget forecast shall provide a workload
justification for proposed budget and staff changes and shall
identify any cost savings to be achieved by program or staff changes.
The budget forecast shall include increases in permit fees and other
fees proposed for the following fiscal year and projected for the
next two fiscal years.
   (e) An identification of the source of all revenues collected that
are used, or proposed to be used, to finance activities related to
either stationary or nonstationary sources.
   (f) The results of the clean fuels program as specified in Section
40448.5. This element of the report shall be submitted biennially.



40454.  (a) Notwithstanding Section 40716 or 40717, or subdivision
(c) of Section 40717.5, the south coast district shall not adopt or
enforce any rule or regulation that would require any employer to
submit a trip reduction plan.
   (b) The south coast district may require employers with 100 or
more employees at a single worksite to provide ride-matching
information and transit information to employees at that worksite.




40455.  Notwithstanding subdivision (e) of Section 40717, the south
coast district shall not require any local agency to implement any
transportation control measure that the district itself is prohibited
from enacting pursuant to Section 40454, unless required by the
federal Clean Air Act.



40456.  Except as provided in Section 43845, the south coast
district shall not require any employer to charge its employees for
parking.


40457.  (a) The south coast district board shall convene a task
force, that shall, on or before July 1, 2000, review, and assist in
updating, the south coast district's data base to ensure that any
small business, as determined by the task force, that is located
within the district and that may be affected by the adoption,
amendment, or repeal of an air quality regulation by the district
board, is included on the south coast district's mailing list.
   (b) On and after July 1, 2000, the district shall mail, to each
small business identified pursuant to subdivision (a) and to each
local or regional authority within the district, notice of the time
and place of any public workshop scheduled by the south coast
district pursuant to Section 40440.7, to consider the adoption,
amendment, or repeal of any district rule or regulation that may
affect that small business or local or regional authority. The
inadvertent failure to mail notice to any particular business or
local or regional authority, as required by this subdivision, shall
not invalidate any action taken by the district board regarding the
adoption, amendment, or repeal of the district rule or regulation.
   (c) In addition to the office of public adviser and small business
assistance required to be maintained pursuant to Section 40448, the
south coast district board shall establish a small business advisory
group comprised of district board members, industry trade association
representatives, and small business owners. The advisory group shall
provide guidance to the district board in implementing this section
and shall provide recommendations for public outreach, business
assistance, and rulemaking activities. The advisory group shall meet
on a regular basis, as determined by the district board.
   (d) To the extent that the requirements of this section duplicate
or overlap with the requirements established pursuant to Section
40448 or 40448.8, the district may combine or consolidate its
activities in order to promote efficiency and nonduplication of
effort.


40458.  (a) Rules 1501 and 1501.1 adopted by the south coast
district are void.
   (b) Rule 2202 adopted by the south coast district shall be amended
in the following manner:
   (1) The worksite employee threshold shall be raised to 250.
   (2) Nothing in this section is intended to prevent an early
replacement and repeal of Rule 2202. The south coast district shall
replace Rule 2202 as soon as possible with alternative direct
light-duty mobile source emission reduction measures, other than new
vehicle emission standards or reformulated fuel standards.



40459.  (a) (1) Except as provided in paragraph (4), on or before
January 1, 2001, the operator of any facility within either the Port
of Los Angeles or the Port of Long Beach that stores, handles, or
transports petroleum coke and is subject to the enclosed storage pile
deadlines of Rule 1158 shall comply with the enclosure requirement
of Rule 1158.
   (2) Except as provided in paragraph (4), on or before January 1,
2002, the facility operator at the Port of Los Angeles shall enclose
the ready pile referenced in subparagraph (k)(10) of Rule 1158.
   (3) On or before January 1, 2004, the facility operator at the
Port of Long Beach shall discontinue the use of, or replace the
shiploader referenced in subparagraph (k)(6) of Rule 1158.
   (4) Notwithstanding paragraphs (1) and (2), if the construction of
additional enclosed storage within the Port of Los Angeles is
commenced on or before April 1, 2001, the facility operator is not
required to comply with subparagraph (k)(10) of Rule 1158 until April
1, 2002.
   For purposes of this paragraph, "construction of additional
enclosed storage" means any storage enclosure for which the south
coast district issues a permit to construct on or after January 1,
2001, but before April 1, 2001, and construction begins on or before
April 1, 2001.
   (b) The south coast district, in conjunction with the state board,
shall annually submit a study to the Legislature that examines the
frequency and severity of violations of south coast district rules
related to the storage, transportation, and handling of petroleum
coke.
   (c) Until the facility operator at the Port of Los Angeles
encloses the outdoor ready pile, as specified in paragraph (2) of
subdivision (a), the south coast district shall monitor the size of
that ready pile to ensure compliance with the 50,000 metric ton limit
requirement in that facility's March 31, 1999, Rule 1158 interim
storage plan.
   (d) On and after January 1, 2003, the south coast district shall
maintain a program to monitor particulates within the Port of Los
Angeles and the Port of Long Beach and shall assess prevalent coke
particulates and improvements in air quality.
   (e) For purposes of this section, "Rule 1158" means the rule
adopted by the south coast district on December 2, 1983, and amended
June 11, 1999, pursuant to this chapter. Any terms used in this
section and in Rule 1158 shall have the same meaning as provided in
Rule 1158.