Carbing out a piece of history

From a legal standpoint, a state cannot impose stricter standards on motor vehicles than those set forth in the Clean Air Act and subsequent amendments at the national level. Yet, the CARB continues to up the ante for drivers in one of the most populous and polluted states in the country. And it has been doing so with the federal government's unspoken blessing.

This is unlikely to change any time soon, as the number of vehicles on California's highways increases, gas prices continue to rise and taking care of the environment stays a mainstream issue. So the board has carved out its niche in the political world, as well as in the realm of the automotive aftermarket.

The lone waiver

Even before the CARB was officially formed, controlling pollution problems had worked its way to the front of concerns among California's government leaders. The state quickly jumped out ahead of the rest of the nation in establishing guidelines to combat these issues.

"It started because in the 1960s, the air pollution problem was most severe in California and gained the most attention in California," says CARB member Daniel Sperling. "In fact, a lot of the original research on air pollution, understanding what air pollution really was and where it came from happened in California. And the first policies and regulations were in California."

All of this preceded the Clean Air Act. "When the federal government stepped up standards in the 1970s as part of the Clean Air Act, they officially recognized California as the leader and grandfathered in the right for California to have its own standards," adds Sperling, who also is the director of the Institute of Transportation Studies and professor of transportation engineering and environmental policy at University of California, Davis.

And the implementation of regulations and guidelines only gained momentum in California, with the U.S. Environmental Protection Agency (EPA) following suit in many cases. For example, the EPA adopted crankcase emissions controls identical to those in California for model year 1963.

But remember, states are not allowed to adopt or attempt to enforce their own emission standards for new motor vehicles or engines, per the Clean Air Act's mobile source portion. However, an exception in Section 209(b) of the act provides that the EPA administrator can waive this for a state that has adopted standards (other than crankcase emission standards) to control emissions from new vehicles and engines before March 30, 1966, "if the State determines that the State standards will be, in the aggregate, at least as protective of public health and welfare as applicable Federal standards." Only California adopted such standards, and therefore is the only state to qualify for a waiver, according to a Congressional Research Service (CRS) report for Congress on California's waiver request to control greenhouse gases under the Clean Air Act.

While the majority of the rules and regulations have spread to other states from California, Sperling says there are rules that California adopts that originated at the federal level.

"It's not like we think we're better or we do everything first. In the vehicle area, California is the only state that is authorized to adopt its own vehicle emissions standards," he offers. "In terms of vehicle emissions, we do take a lead because the way the law is written, we can only do it if it's at least as stringent as the national standard."

What's come before

After the emissions standards were adopted to control oxides of nitrogen (NOx), hydrocarbons (HC) and carbon monoxide (CO), the CARB rolled right into fuel standards. In 1971, it limited the volatility of gasoline to nine Reid Vapor Pressure (RVP) during the ozone season.

In 1973 and 1974, vehicle performance and fuel economy had declined so much because of emissions controls that technicians began to tamper with these controls. After a series of court battles, the CARB reduced HC and CO emissions standards for 1975 model year light-duty vehicles, according to information provided by the CARB. This included removing lead from gasoline (a federal requirement first) and the implementation of the oxidation catalytic converter. This was the first exhaust aftermarket system installed on vehicles.

The oxygen sensor was introduced in the 1980s, while the on-board diagnostic system first appeared in 1988. These emissions controls are the backbone of the CARB's history.

The CARB implemented the Low Emission Vehicle (LEV) program in 1994, which consisted of four light-duty vehicle categories: Transitional-Low Emission Vehicle, LEV, Ultra-Low Emission Vehicle and Zero Emission Vehicle (ZEV).

Other states picked up the LEV program as the decade progressed. Beginning with model year 1999, the program was available in New England; it went nationwide in 2001.

Diesel requirements appeared in the early 2000s, and the CARB now is working on controlling greenhouse gas emissions for the first time in 2009, with complete phase-in by 2016. These requirements, according to information provided by the CARB, would reduce greenhouse gas emissions from light-duty vehicles by 155,200 carbon dioxide-equivalent tons per day, or 27 percent statewide by 2030. Diesel control is a key part of this plan.

"We're very aware that when we take leadership in different areas, with it comes definite responsibility to do it in a way that is compatible with federal rules and policies, and also that is amenable to being adopted elsewhere," Sperling notes. "And there's a certain satisfaction in helping clean up and improve the transportation sector beyond California's borders."

Who are these members?

The board appears to wield a significant power over more than just its home state. With the EPA recognizing that California has a unique greenhouse gas situation and needs to make its own rules, the CARB's power spills across the country. So the 11 members have significant influence when they sit down to vote.

CARB Spokeswoman Gennet Pauwee says board members are appointed by the governor's office and serve for as long as they want. There must be a board member from each of California's air districts, and some members are chosen based on specialties they possess.

"Most of them are paid through the jobs they have. Some get per diem (rates)," she says, adding that the chairman is the only full-time member paid a salary. The current chairwoman is Mary D. Nichols, who took over the position earlier this year when Dr. Robert Sawyer stepped down. In addition to Nichols and Sperling, board members are Jerry Hill, Dorene D'Adamo, Barbara Riordan, Henry Gong Jr., Lydia H. Kennard, Sandra Berg, Ron Roberts, Judy Case and Ronald O. Loveridge.

The board meets on the third Thursday of every month, and the location moves around the state depending on time and itinerary. The CARB staff members brief board members before these meetings, and many members meet with industry and community members before votes are taken at these monthly meetings, Pauwee says.

"When something comes before the board for a vote, there should not be a surprise in the industry," she states. "We try to bring everybody in early on. Their input's really important. We listen to that. It's not like we write a regulation and say, 'too bad for you.' We know they're experts in their field and we (staff members) take that into account, and the board members do too when they go into a vote."

Sperling reiterates the staff's involvement with industry and community members in gathering information to present to the board. "The first level is that the staff at the Air Board are tremendously competent on the one hand, and on the other hand also spend a huge amount of time working with the stakeholder groups to understand their interests and the impacts," he says. "And then on top of that, the board members themselves interact with the different stakeholder groups. By the end of the process, there's a tremendous amount of input in terms of data and analysis and opinions by all the stakeholder groups."

However, that view is not widely shared on the other side of the boardroom table.

Not completely smooth sailing

The California Nevada Automotive Wholesalers' Association (CAWA) is one of the biggest stakeholder groups the CARB deals with when it comes to the automotive sector. While CAWA leaders say some board members have open door policies, others are difficult to work with.

"It's hard to get a read, because they appear sympathetic and empathetic to the concerns of the industry, but then they back up," says Norman Plotkin, CAWA legislative advocate. "Most of the board members have a fairly open door policy, but it's rare that they go against what staff has proposed."

The CAWA watches everything from volatile organic compounds (VOCs) in consumer products to emission controls and reducing greenhouse gases. Plotkin says while the association carefully watches what the board does and tries to get the industry's voice heard, the industry takes a second seat.

"They start every (meeting) with a report of children and asthma incidents near freeways," he laments. "They tear up and feel sorry for the children and want to stick it to the industry."'

This is after board and staff members have listened to CAWA's concerns and taken the automotive industry's views into consideration. Plotkin also says some board members do not like to meet with industry members because of rules that limit with whom and when they meet.

Sperling says the board is open to industry's concerns and considers them in making decisions.

"I don't know the history of ARB actions on the auto aftermarket industry, but in my six months with ARB, I have been extremely impressed by the time and effort ARB staff devote to meeting with and trying to accommodate industry concerns," he says. "The board often follows staff recommendations (though with many exceptions), but that is because the ARB staff is one of the best that exists in all of government."

But that doesn't rest easy with CAWA and other association members.

"I see very arrogant, aggressive regulators, people that are not anti-business, but they put business in second position," Pierini says.

"It's capital F frustrating and capital P patronizing," Plotkin states. "They can never be accused of not listening to industry, but they can be accused of not hearing industry."

Back on the other coast

The frustrations extend across the country to Washington, D.C., where the Automotive Aftermarket Industry Association (AAIA) also keeps a close eye on the CARB. Aaron Lowe, vice president, Regulatory and Government Affairs at AAIA, says he keeps tabs on the board from the nation's capital and through ties with the CAWA.

"We all follow what goes on at CARB every day, pretty much. That's because California is a tremendous market into itself," he says. "And second of all, everything that happens in California, from an environmental standpoint (ends up on a national level). We cannot afford to not be active in that state in what they do from a regulatory and legislative standpoint."

Lowe says the board does its homework, but is difficult to fight when you oppose them on an issue, especially coming from a business position. "It tends to be environment first and competition and what happens to the state of business second." He also says the board is "a very activist group."

Sperling disagrees: "The Air Board is not ideological. It's not an advocacy organization. It's not evangelistic. It's a very scientifically-based, rule-based, data-driven agency. And it's people doing their job."

The CARB has approached the AAIA looking for input on issues, and has taken the association's advice on issues such as VOCs in consumer products like polishes and waxes, according to Lowe.

"I have to say their staff, while you don't always like what comes out of there, they're always willing to meet with you, listen...and hear your point of view," he states. "I wouldn't infer that they haven't been willing to listen to us."

Once the EPA picks up on something the CARB has enacted, the AAIA works with the federal agency to get the automotive aftermarket's viewpoint heard. Sometimes this works to the industry's benefit; sometimes it doesn't.

"It really plays both ways. If it's a rule we like in California, it makes it remarkably easier to get it adopted nationwide," Lowe explains. "If it's a rule we don't like...like extended warranties...it's hard because they tend to adopt (it nationally). That's why we're fighting so hard in California to knock it out."

Sperling, the CARB member, adds that it is a "very daunting challenge and responsibility" when rules the CARB enacts are picked up elsewhere. "For me, the realization that we are making decisions that can have huge cost impacts on industry, can cause billions of dollars of costs on the one hand, and on the other hand that our decisions can provide a major health benefit to people, is the daunting challenge and responsibility," he explains. "Because it's important, but it's important to do it right. In many cases, there's no model or precedent, and so we're forging ahead here sometimes where tradeoffs have to be met. And those are not obvious. It's not obvious how to make those tradeoffs."

Off on the horizon

The CARB is waiting for the EPA to hand down the board's latest waiver request. The waiver would allow the CARB to continue with regulations it adopted Sept. 24, 2004, requiring gradual reductions in fleet average greenhouse gas emissions until they are about 30 percent below the emissions of the 2002 fleet in 2016, according to the CRS report for Congress. There are credits available with the program, and credits and debits must be equalized within five years of their generation starting in 2014.

The waiver request found its way to the U.S. Supreme Court, leading to the delay in the EPA granting the waiver. One concern the EPA has is that while California is the only state allowed to adopt more stringent standards, a provision in the Clean Air Act says that if another state wishes to adopt those standards that are identical to what California receives a waiver for, and that both states adopt the standards at least two years before the affected model year, then the other state can use those regulations. According to the CRS report, if California receives a waiver for greenhouse gas emissions, 14 other states intend to adopt the state's controls.

But while the CARB says the greenhouse gas emissions are near the top of the list, the CAWA and AAIA say extended warranties and consumer sales of R-134a are the main issues.

In the end, no matter what the issue, California continues to plow ahead in controlling emissions, pollution and other threats to the environment. The automotive industry will continue to work to get its voice heard and make it easier for OE and aftermarket manufacturers and supply chain members to keep track of the changing regulations in California and nationwide.

"We believe we represent the first line of defense for the industry in Sacramento, (Calif.), because unfortunately or fortunately, when there's a positive or negative issue, it either occurs primarily in Sacramento or Washington, D.C.," says Pierini with the CAWA. "We're the troops on the ground, in essence. We take that role very seriously and we feel we do very well in that role."