1. How will we enforce AB32? It's tough to make predictions, especially about the future. Yogi Berra It's tough to make predictions, especially about the future. Yogi Berra

2. AB 32 Timeline 2020 2007 20082009 2010 2011 2012 GHG reduction measures enforceable Adopt GHG reduction measures Publish list of early actions Adopt scoping plan Mandatory reporting & 1990 Baseline Adopt enforceable early action regulations Reduce GHG emissions to 1990 levels Identification/ implementation of further emission reduction strategies Early action regulations enforceable

3. MEASURES UNDERWAY OR TO BE INITIATED BY ARB IN THE 2007-2012 PERIOD R & D only No predictable enforcement model No predictable enforcement model NPEM Historical Command & Control Reporting & audit Staff Recycling

4. How do we enforce existing rules? Teamwork Teamwork –Partnership with other ARB divisions –Partnership with 35 local air districts –Partnership with Attorney General and local District Attorneys –USEPA Statewide enforcement programs Statewide enforcement programs –Automotive tailpipe emissions –Fuels –Consumer products –Heavy Duty Diesel Teamwork Teamwork –Partnership with other ARB divisions –Partnership with 35 local air districts –Partnership with Attorney General and local District Attorneys –USEPA Statewide enforcement programs Statewide enforcement programs –Automotive tailpipe emissions –Fuels –Consumer products –Heavy Duty Diesel

5. Our Goals Compliance Compliance A level playing field A level playing field Deterrence Deterrence Compliance Compliance A level playing field A level playing field Deterrence Deterrence

6. Scope of the Challenge 25 Million Motor Vehicles 0.5 Million diesel trucks 35 Air Districts Source Categories of Exclusive ARB Enforcement Automotive Tail pipes Fuel specs Consumer products Railroads Personal watercraft Source Categories of Exclusive ARB Enforcement Automotive Tail pipes Fuel specs Consumer products Railroads Personal watercraft 32 Million People 40,000 Stationary Sources 44 prohibitory rules in SCAQMD today 44 new rules for AB32 to be enforceable by Jan 2012. More to follow. 100,000 retail stores selling regulated consumer products 12,000 Gas stations 4000 Cargo tanks

7. New responsibilities under AB 32 Health & Safety Code §38580 Health & Safety Code §38580 (a) The state board shall monitor compliance with and enforce any rule, regulation, order, emission limitation, emissions reduction measure, or market-based compliance mechanism adopted by the board pursuant to this division. (a) The state board shall monitor compliance with and enforce any rule, regulation, order, emission limitation, emissions reduction measure, or market-based compliance mechanism adopted by the board pursuant to this division. Health & Safety Code §38580 Health & Safety Code §38580 (a) The state board shall monitor compliance with and enforce any rule, regulation, order, emission limitation, emissions reduction measure, or market-based compliance mechanism adopted by the board pursuant to this division. (a) The state board shall monitor compliance with and enforce any rule, regulation, order, emission limitation, emissions reduction measure, or market-based compliance mechanism adopted by the board pursuant to this division.

8. Discrete Early Action 38560.5 (a) the state board shall publish… a list of discrete early action… measures that can be implemented prior to the measures and limits adopted pursuant to Section 38562. 38560.5 (a) the state board shall publish… a list of discrete early action… measures that can be implemented prior to the measures and limits adopted pursuant to Section 38562. 38560.5 (b) On or before January 1, 2010, the state board shall adopt regulations to implement the measures identified on the list published pursuant to subdivision (a). 38560.5 (b) On or before January 1, 2010, the state board shall adopt regulations to implement the measures identified on the list published pursuant to subdivision (a). 38560.5 (a) the state board shall publish… a list of discrete early action… measures that can be implemented prior to the measures and limits adopted pursuant to Section 38562. 38560.5 (a) the state board shall publish… a list of discrete early action… measures that can be implemented prior to the measures and limits adopted pursuant to Section 38562. 38560.5 (b) On or before January 1, 2010, the state board shall adopt regulations to implement the measures identified on the list published pursuant to subdivision (a). 38560.5 (b) On or before January 1, 2010, the state board shall adopt regulations to implement the measures identified on the list published pursuant to subdivision (a).

9. Further Measures 38562. (a) On or before January 1, 2011 the state board shall adopt greenhouse gas emission limits and reduction measures by regulation to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit, to become operative beginning on January 1, 2012. 38562. (a) On or before January 1, 2011 the state board shall adopt greenhouse gas emission limits and reduction measures by regulation to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit, to become operative beginning on January 1, 2012.

10. Three Enforcement Models Historical Command & Control Historical Command & Control – –ARB field personnel – –Local district field personnel/ARB oversight Reporting & audit Reporting & audit – –Audits/accounting – –Self monitoring & reporting Staff Recycling Staff Recycling – –Window of compliance Historical Command & Control Historical Command & Control – –ARB field personnel – –Local district field personnel/ARB oversight Reporting & audit Reporting & audit – –Audits/accounting – –Self monitoring & reporting Staff Recycling Staff Recycling – –Window of compliance

11. ARB Historical Model ARB hears 20 regulatory items per year. Once adopted an enforcement plan is developed and staff provided in the next fiscal year. – –Submit budget change proposal (BCP), hire & train state inspection staff. Train industry personnel. – –District rule development – –Audits of district enforcement program ARB hears 20 regulatory items per year. Once adopted an enforcement plan is developed and staff provided in the next fiscal year. – –Submit budget change proposal (BCP), hire & train state inspection staff. Train industry personnel. – –District rule development – –Audits of district enforcement program

12. Statewide Enforcement Responsibilities Fuel Specifications Automotive Tailpipes Consumer Products Heavy Duty Diesel Motorcycles Railroad Agreement Small off road engines Marine vessels Pleasure craft Fuel Specifications Automotive Tailpipes Consumer Products Heavy Duty Diesel Motorcycles Railroad Agreement Small off road engines Marine vessels Pleasure craft

13. Reporting and Audit Requirements Compliance may be confirmed with data from a third party or direct reporting Compliance may be confirmed with data from a third party or direct reporting Accounting becomes the principal enforcement tool Accounting becomes the principal enforcement tool Field visits are essential Field visits are essential Compliance may be confirmed with data from a third party or direct reporting Compliance may be confirmed with data from a third party or direct reporting Accounting becomes the principal enforcement tool Accounting becomes the principal enforcement tool Field visits are essential Field visits are essential

14. Reporting and Audit Requirements Market-based compliance mechanisms Health & Safety Code §38570 (a) The state board may include in the regulations adopted pursuant to Section 38562 the use of market-based compliance mechanisms to comply with the regulation Market-based compliance mechanisms Health & Safety Code §38570 (a) The state board may include in the regulations adopted pursuant to Section 38562 the use of market-based compliance mechanisms to comply with the regulation

15. How can we expand and improve on the traditional enforcement models? Force multipliers such as: Increased use of district partnership for sources traditionally handled by the state. Increased use of digital monitoring and reporting. Force multipliers such as: Increased use of district partnership for sources traditionally handled by the state. Increased use of digital monitoring and reporting.

16. Self monitoring and reporting Self monitoring and reporting Digital and periodic paper submittals of facility wide compliance condition Digital and periodic paper submittals of facility wide compliance condition Compliance confirmation inspections are conducted by specialized team Compliance confirmation inspections are conducted by specialized team Self monitoring and reporting Self monitoring and reporting Digital and periodic paper submittals of facility wide compliance condition Digital and periodic paper submittals of facility wide compliance condition Compliance confirmation inspections are conducted by specialized team Compliance confirmation inspections are conducted by specialized team Reporting and Audit Requirements

17. Recycled Staff Model Rule writer or Veteran enforcer Recycled veteran Date of rule adoption or confirmed final compliance Ad hoc Enforcement Teams

18. Questions