August 11, 1995

South Coast Air Quality

Management District Board

The Mobile Source Committee met on Friday, July 28, 1995. Major items discussed included: Project XL and Rule 1501.1 Implementation (Attachments III and IV); Update on REACH (Attachment V); Status Report on Proposed Rule 1612 & Rule 1620 (Attachments VI and VII); Status Report on Regulation VII (Attachments VIII and IX); Rule Forecast Report (Attachment X); Legislative Update (Attachment XI); Rule 1501/ISRs Activity Report; and, EIR Report (Attachment I).

A summary of these topics and the Committee's comments is provided in Attachment I. An attendance roster is provided in Attachment II.

The next Mobile Source Committee meeting will be held on Friday, August 25, 1995, in Conference Room CC-8 at 9 a.m.

THEREFORE, IT IS RECOMMENDED THAT YOUR BOARD

--Approve the attached report.

Sincerely,

Candace Haggard

Chairperson

Mobile Source Committee

BRW:CW:LT:CD:GT

Attachments

ATTACHMENT I

MOBILE SOURCE COMMITTEE

July 28, 1995

TOPICS

1. Project XL and Rule 1501.1 Implementation

Staff gave a status report on the Employee Commute Options (ECO) Flexibilities Work Group. The Clean Air Act Advisory Committee (CAAAC) formed the group to determine EPA's ability to allow flexibility to individual states and recommend ECO models for states to follow.

Mary Nichols, Assistant Administrator of EPA identified in her letter to air districts, five recommendations that the CAAAC was forwarding to EPA for approval. EPA strongly endorsed four of the five recommendations. EPA is also encouraging States and local districts interested in the fifth recommendation, emissions equivalency, to submit their proposals for consideration under President Clinton's Reinventing Environmental Regulation Initiative, the XL Program. In response to EPA's recommendation, the District submitted Rule 1501.1 as a project proposal to EPA for consideration under the XL Program. The SCAQMD has received a favorable initial response from EPA and final approval/disapproval is expected in August. Chairwoman Haggard asked staff if employers choosing to opt into Rule 1501.1 could have any guarantees as far as EPA's final approval of emissions equivalence. Staff responded by stating that Rule 1501.1 may prove to be more cost effective than Rule 1501 with the same emission reductions, making it a financially profitable alternative.

It was noted that if the mandate for employer trip reduction programs such as Rule 1501 was eliminated from the Clean Air Act, there would be a shortfall in emissions reduced in the Basin. Rule 1501 would then have to be replaced with some other type of measure. If any employer chose to implement Rule 1501.1 and the rule was ultimately eliminated, the emission reductions from implementing the rule would be excess reductions and could be used to sell or trade.

Chairwoman Haggard requested information on outreach efforts relating to Rule 1501.1, specifically the local government seminar. Staff distributed a summary of upcoming outreach events (Attachment III), including the local government seminar which is scheduled for Friday, October 6, 1995 and a Rule 1501.1 vendor workshop & public briefing which is slated for Friday, September 15, 1995.

Staff gave a presentation on the status of Rule 1501.1 implementation. Staff stated that they have received requests from employers who are interested in all three alternative compliance options. Staff has completed Rule 1501.1 registration forms and an outreach pamphlet (Attachment IV). Staff has also granted extensions on Rule 1501 plan submittals to give employers the opportunity to opt into the Rule 1501.1 program.

2. Update on REACH

Staff distributed a copy (Attachment V) of the REACH (Reduce Emissions and Congestion on Highways) Task Force summary sheet which identifies the group's purpose & goals, membership and accomplishments to date. Staff highlighted the D.J. Smith's public attitude survey and the $1.1 million dollar study that is at the final consultant(s) selection phase. REACH membership will be asked to submit any straw proposals and approval criteria. Current issues of the taskforce are revenue neutrality or revenue generation and, congestion management versus air quality improvement.

3. Status Report on Proposed Rule 1612 & Rule 1620

Staff gave a status report (Attachment VI & VII) on proposed Rule 1612 & Rule 1620. Staff identified program components, presented a rule development schedule and highlighted key issues with staff responses and proposed resolutions to issues, where applicable. Staff stated that an inter-sector trading study between mobile and stationary sources is currently underway. Staff identified several issues that will be addressed as part of the inter-sector trading study.

Orange County Transit Authority indicated that regulations need to be directed toward vehicle engine manufacturers as well as vehicle manufacturers. OCTA also stated that there is a need to perform testing on vehicle chassis.

The Southern California Edison Company's (SCE) position is that electric vehicles do not deteriorate as far as durability. SCE also stated that the life of a credit as it relates to emissions banking will determine the value of the credit and whether new technology will be developed. Staff stated that if the life of a credit is too lengthy, the impact may affect the basin's overall attainment strategy. SCE stated that they have submitted a request to Dr. Lents to consider trading between mobile source and stationary source markets.

Board Chairman Mikels stated that incentives should be given to those who purchase the vehicles versus the vehicle manufacturers. This approach may get greater results by having more cleaner vehicles on the road and allow smaller companies to buy into the program. The end result may be that the market may determine the level of participation from the automobile manufacturers.

4. Status Report on Regulation VII

Staff gave a report (Attachment VIII & IX) on the proposed amendments to Regulation VII. Staff indicated that proposed amendments will streamline the regulatory process with respect to stationary sources and mobile sources but the greatest impact will be on educational institutions. Currently, educational institutions have not received consistent and ongoing information on air quality conditions in a timely manner. This has resulted in outdoor activity occurring regardless of the potential health effects to individuals. Day care and preschool facilities will also be included in the episode notification outreach efforts. In addition, the District will formally identify NO2 and PM10 episodes as part of the daily forecast.

Staff will be updating the Interactive Voice Response (IVR) System to allow individuals to obtain hourly updates for a specific designated area. A major issue related to the proposed rule amendments is the elimination of the requirement for companies to submit Emergency Episode Plans to the District.

Staff indicated that, in the past, the current meteorological conditions would have produced a 3rd stage episode. Today, these same conditions are barely attaining air pollution conditions below a 1st stage episode. Staff does not anticipate predicting a 2nd or 3rd stage episode in the near future as the air quality in the basin continues to steadily improve.

5. Rule Forecast Report

Staff distributed a copy (Attachment X) of the updated rule forecast for Indirect Source Rules. No comments were made.

6. Legislative Update

Staff distributed a status report (Attachment XI) on legislative bills that may affect the AQMD. No comments were made.

7. Rule 1501/ISRs Activity Report

No staff presentation was made. No comments were made.

8. EIR Review and Preparation

No staff presentation was made. No comments were made.

9. Public Comment

There were no public comments.

(msrptjul)

ATTACHMENT II

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

MOBILE SOURCE COMMITTEE

July 28, 1995

ATTENDANCE SHEET

NAME AFFILIATION

Candace Haggard Boardmember

Jon Mikels Boardmember

Kenneth Bruner Asst. to Boardmember Hewitt

Edric Guise Asst. to Boardmember Soto

Barry Wallerstein AQMD Staff

Catherine Wasikowski AQMD Staff

Jack Broadbent AQMD Staff

Laki Tisopulos AQMD Staff

Henry Hogo AQMD Staff

Cindy Greenwald AQMD Staff

Mel Zeldin AQMD Staff

Joe Cassmassi AQMD Staff

Davel Coel AQMD Staff

Zorik Pirveysian AQMD Staff

Denice Brue AQMD Staff

Larry Kolzcak AQMD Staff

Claudia Keith AQMD Staff

Frances Keeler AQMD Staff

Fred Minassian AQMD Staff

Gracie Q. Tucker AQMD Staff

Jacki Bacharach WRCOG

Amy Glad BIA

Deborah Kurilchyk So. Cal. Edison

Jackie Lourenco Air Resources Board

Jim Ortner OCTA

Carla Walecka C. Walecka Planning