October 13, 1995

South Coast Air Quality

Management District Board

Quarterly Status Report On

In April 1995, the South Coast Air Quality Management District (AQMD) Governing Board amended Rule 1501 - Work Trip Reduction Plans and adopted Rule 1501.1 - Alternatives to Work Trip Reduction Plans.

The intent of the Rule 1501 amendments was to further streamline the rule, reduce program implementation costs, improve rule effectiveness, and offer additional flexibility in meeting trip reduction goals. Rule 1501.1 provides alternatives to compliance with Rule 1501 and represents a significant departure from the trip reduction strategies previously available to affected employers. The combined strategies of Rule 1501 and Rule 1501.1 established the framework for a more viable and comprehensive approach towards achieving healthful air quality, and for attaining the indirect source and employer trip reduction goals of the state and federal Clean Air Acts.

Staff has prepared the attached first quarterly status report on Rule 1501 and Rule 1501.1 pursuant to the Board Resolution adopted on April 14, 1995. The report summarizes efforts and progress made during the first quarter of rule implementation. The response of employers to the streamlining efforts and the new alternatives has been overwhelmingly positive. Since July 1, 1995 was the implementation date for the amendments to Rule 1501 and the newly adopted Rule 1501.1, this report focuses on the first two months of the first quarter.

In the intervening time from when the Board requested staff to prepare the quarterly status report on Rules 1501 and 1501.1 and hold a public hearing, several related legislative actions have taken place or are pending at the state and federal levels. This legislation would significantly affect future rideshare program efforts.

In California, SB437 (Lewis) and SB772 (Hurtt) directly impact employer trip reduction requirements. These two bills have been approved by the Assembly and Senate and are awaiting the Governor's signature. If chaptered, these proposed laws would become effective on January 1, 1996.

On the federal level, the House of Representatives has the Employee Commute Options (ECO) on its agenda for Correction Days with a proposed amendment to the Federal Clean Air Act (CAA) that would allow for alternative emissions reductions to substitute for employer trip reductions.

In compliance with pending state law, staff has determined that existing Rules 1501 and 1501.1 must be restructured or replaced with a new rule. This new rule could give employers a menu of alternatives to choose from, including emissions reductions strategies. Trip reduction efforts might be included as a strictly voluntary option to be selected at the sole discretion of the employer. Such a regulation would also be in line with the proposed federal action to allow equivalent emission reductions for CAA purposes. Staff is checking with Senator Lewis' and Senator Hurtt's offices regarding this approach.

THEREFORE IT IS RECOMMENDED THAT YOUR BOARD:

--Receive and file this Report.

--Receive Public Comment on Rules 1501 and 1501.1.

--Direct staff to prepare a new regulation to replace existing Rules 1501 and 1501.1 and schedule an adoption hearing for December 8, 1995.

Respectfully,

James M. Lents, Ph.D.

Executive Officer

Attachments

BRW:CLW:LT:ENL

(stfbltr1.doc)

(October 9, 1995)