September 8, 1995

South Coast Air Quality

Management District Board

Mobile Source Committee Report


The Mobile Source Committee met on Friday, August 25, 1995. Major items discussed included: Overview of TAO Programs; Rule 1501 and 1501.1 Implementation; RFP on Rule 1501.1 Air Quality Investment Program Funds: Progress Report on Shopping Centers Study; Status Report on Proposed Rule 1612 and Rule 1620; Recommendation to Award Bid for Application of an Episodic Aerosol/Visibility Model to the South Coast Basin; Status Report on REACH Task Force; Status Report on PM10 Task Force; Rule 1501/ISRs Activity Report; Legislative Update; and EIR Report.

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

The next Mobile Source Committee meeting will be held on Friday, September 15, 1995 in Conference Room CC-8 at 9:00 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

(895bdl.doc)


ATTACHMENT II

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

MOBILE SOURCE COMMITTEE

August 25, 1995

ATTENDANCE SHEET


NAME AFFILIATION


Jon Mikels Chairman of the Governing Board

Candace Haggard Boardmember

Ron Loveridge Boardmember

Nell Soto Boardmember

Ken Bruner Asst. to Boardmember Hewitt

Edric Guise Asst. to Boardmember Soto

Dr. Lents AQMD Staff

Barry Wallerstein AQMD Staff

Alan Lloyd AQMD Staff

Paul Wuebben AQMD Staff

Denice Brue AQMD Staff

Frances Keeler AQMD Staff

2


NAME AFFILIATION


Catherine Wasikowski AQMD Staff

Jack Broadbent AQMD Staff

Laki Tisopulos AQMD Staff

Henry Hogo AQMD Staff

Cindy Greenwald AQMD Staff

Julia Lester AQMD Staff

Gracie Q. Tucker AQMD Staff

Von Loveland AQMD Staff

Dawn Meier AQMD Staff

Fred Minassian AQMD Staff

Huasha Liu AQMD Staff

Detrich B. Allen City of Los Angeles

Jacki Bacharach WRCOG

Ty Schuling SANBAG

Carla Walecka Consultant

Leann Williams Caltrans

ATTACHMENT I

MOBILE SOURCE COMMITTEE

August 25, 1995

TOPICS

1. Overview of TAO Programs

Staff gave a presentation (Attachment III) on upcoming Technology Advancement Office (TAO) projects that are scheduled for Board approval during the next three months. Staff indicated that there will be a two-day contractor review meeting on September 27th & September 28th. Staff will give updates to attendees on gaseous, liquid fuels, and heavy & light duty vehicle programs.

Staff is recommending Board approval for the following contracts in September: Breakthrough Technologies Institute - gather and provide detailed fuel cell information to staff; Mader & Associates - provide valuable information on electric vehicles; Kyle Davis - serve as a District resource for fleet vehicle coordination and operations; and, T-Gal - facilitate energy interfacing with alternative fuels.

During the month of October, TAO will be recommending Board approval for a joint PM10 health effects study with the California Public Health Foundation. Monies to fund this project are pass-through funds received from the U.S. Environmental Protection Agency (EPA). This project will focus on differentiating various health effects. Analysis of hospital records in the Coachella Valley will be reviewed to assist in distinguishing specific effects. Staff will also be recommending approval of a demonstration project to develop a hybrid electric/propane refuse truck. Staff stated that the California Air Resources Board is considering the concept of allowing auto manufacturers to receive emission credits from heavy duty vehicles and directly apply them toward light duty vehicles.

In October, staff is recommending Board approval of a contract with the Southwest Research Institute (SwRI) for the third and final year of the development and demonstration of an ultra-low Nox natural gas engine. This project, cost-shared with the Southern California Gas Company, is based on a new engine technology developed by SwRI called rich-burn/lean-burn technology promises to achieve Nox emissions from a stationary natural gas engine significantly below current AQMD rule limits. Lastly, TAO will be recommending approval of a PM10 contract to obtain actual vehicle sampling and determine how the results relate to the 2.5 microns and 10 microns thresholds.

During the month of November, TAO expects to recommend Board approval on the following projects: Medium duty vehicles with commercial application. Monies to fund this project will be pass-through funds from the California Energy Commission; Metallic Power Inc. - study the use of aluminum air batteries; Amerigon & CEC - develop an on-board vehicle navigation program. This would give consumers the ability to locate alternative fuel stations. Given the distant timeframe, these projects may or may not move forward.

Chairperson Haggard stated that it would be useful to have a matrix identifying projects funded from AB2766 monies and TAO monies. This would ensure that duplication of projects was not taking place. Staff indicated that Senate Bill 199 (Kelly) would require the AQMD to carry out a thorough search to avoid duplication. Staff would also be required to perform a benefits analysis. Staff will provide the committee with a matrix and report back during the next quarter.

Staff pointed out that AB2766 monies are aimed at immediate emissions reductions, whereas TAO monies have major emphasis on the advancement of technology. A matrix will be prepared by staff and provided to the Committee at the next quarterly upate meeting.

2. Implementation of Rule 1501 and Rule 1501.1

Staff presented the committee with a copy of EPA's letter (Attachment IV) indicating approval of Rule 1501.1 as a demonstration project for Project XL. Staff is working with EPA to complete the final project agreement. A quarterly progress report will be given by staff to the Governing Board in October.

There are currently 41 potential participants in Rule 1501.1. Staff stated that many companies are awaiting the Board's direction in October on Rule 1501 and Rule 1501.1 to determine if they will participate in the program.

Staff stated that there is currently just over $330,000 in the investment fund. Staff has scheduled a technology vendor demonstration for Friday, September 15th to facilitate interaction between employers and service providers. Staff has invited remote sensing and vehicle scrapping representatives to showcase their products and services.

Board Chairman Mikels asked staff for an update on EPA's requirement of rideshare programs. Staff stated that from what has been said lately, it seems unlikely at this time that federal requirements would be changed under the Clean Air Act this year. Board Chairman Mikels noted that the District may be in a dilemma if SB772 is passed by the California Legislature, prohibiting mandatory ridesharing plans, while the federal government continues to require air pollution control districts to require ridesharing plans.

3. RFP on Rule 1501.1 Air Quality Investment Program Funds

Staff has prepared a Request for Proposals (RFPs) to solicit proposals from individuals and/or entities who can submit projects that demonstrate equivalent emission reductions. Ken Bruner, Assistant to Boardmember Hewitt, stated that some of the monies should be used to fund research projects at CE-CERT on an endowment basis for future emissions reductions. Board Chairman Mikels stated that TAO is already working with CE-CERT to commence such research projects and funding is part of that support. Staff indicated that the AQMD has made a commitment to EPA to achieve emissions equivalency as a condition of participation in President Clinton's XL program. Staff stated that notification of the Air Quality Investment Program RFP will include Rule 1501 employers, local governments, Rule 1610 and Rule 1612 companies and others. As the program progresses, staff is looking to privatize various components of the programs so that employers can work directly with service providers.

Chairperson Haggard asked staff how the Air Quality Investment Program dovetails with the Mobile Source Review Committee program and whether it was duplicative. Staff stated that the Air Quality Investment Program will be directed toward private entities as well as public agencies in that proposals could be submitted by anyone interested. There is no direct emphasis placed on matching funds and consideration will be given to selecting projects in the same county from which investment funds are received.

4. Progress Report on Shopping Centers Study

Staff noted that a shopping center measure is included as part of the 1994 Air Quality Management Plan's (AQMP) Indirect Source Rules (ISRs). The AQMP relied on data from the Origination and Destination Study to obtain emission inventory figures for each ISR. Detailed information regarding shopping centers is currently not available. Staff issued an RFP and received 8 proposals. A committee consisting of outside evaluators reviewed and scored the submitted proposals. Attachment V outlines how the Study fits into the rule development process.

Board Chairman Mikels asked staff what criteria is being used to determine what shopping centers will be subject to analysis. Staff stated that the study results will be used to define the potential universe and criteria of applicability. Staff will review the emission reduction projections in the AQMP and look at the characteristics of various shopping center size categories to determine whether the emission reduction target can be met. Staff will form a working group to gather input on the development of a menu-driven proposal. Board Chairman Mikels stated that the goal of the analysis should not be to cover all shopping centers but to affect only those centers that would achieve the required emissions reduction targets. Staff stated that the shopping center measure will require a coordinated effort between local governments and shopping center representatives.

Chairperson Haggard stated that market incentives are vital to replacing ISRs which are unattractive and unappealing measures. Chairman Mikels agreed. Boardmember Soto stated that local governments are experiencing financial difficulties and cannot afford additional restrictions that may affect their revenue. Board Chairman Mikels stated that perhaps the AQMD should direct funds toward the source of the problem. For example, schools could be allocated monies to address their student driving population through greater use of clean-fueled buses. The 1994 AQMP does not require implementation of ISRs until 1997. The development of these ISRs during the next two years is to ensure that they are used as back-stop rules if market incentives do not occur. Boardmember Soto stated that she is not in support of developing a shopping center rule.

5. Status Report on Proposed Rule 1612 and Rule 1620

Staff has scheduled public hearings on Proposed Rule 1612 - Clean On Road Vehicles and Rule 1620 - Clean Off Road Equipment, for the September Board meeting. Staff summarized recent proposed changes and issues raised at the second public consultation meeting that was held on July 6, 1995. Staff highlighted issues that are under further evaluation and may require Board direction. Staff has included as part of the handouts, copies of letters from the Southern California Edison Company and the National Association of Fleet Administrators (Attachment VI).

6. Recommendation to Award Bid for Application of an Episode Aerosol/Visibility Model to the South Coast Basin

Staff stated that 63 Request for Proposals were sent out to perspective bidders. Staff received proposals from only one consultant. An evaluation panel (comprised of the U.S. EPA, CARB, an automotive representative, and AQMD staff) reviewed the submitted proposal and gave it a score of 92.5 out of a possible 100 for technical qualification. Staff is recommending that the contract be awarded to Sonoma Technology Inc. (Attachment VII). Staff stated that the PM10 task force members, consisting of leading competitors for this RFP, were aware of the project. Boardmember Soto stated that staff needs to give bidders sufficient time to respond to RFP proposal requests.

7. Status report on REACH Task Force

Staff highlighted the agenda items that were discussed at the August 23rd meeting (Attachment VIII & IX). SCAG presented the consultant team who will be researching and developing a specific aspect of the study. The three selected consultants are Wilbur Smith Associates, the DeVinny Group and Guerra & Associates. A presentation was given by Ed Regan of Wilbur Smith Associates on current pricing projects and expressed concern over the short turn-around period for bids.

Ward Elliott gave the task force a presentation on vehicle miles traveled versus "pure" congestion pricing. Ward Elliott stated that research indicated that "pure" congestion pricing was the more effective approach. Staff stated that EPA and AQMD staff believe that data presented was significantly flawed and contrary to recent work completed for CARB.

Board Chairman Mikels mentioned that straw proposals were being revised by the consultant team in an effort to focus the direction of the Task Force. He stated that obtaining emission reduction credits from High Occupancy Vehicle (HOV) lanes may be a less painful way to convert free lanes into lanes that require a fee. Boardmember Soto stated that this approach would punish those vehicles who utilize the HOV lanes and not those vehicles who use the mixed lanes and are the single occupancy vehicles. Boardmember Loveridge asked at what level would congestion pricing be effective. Board Chairman Mikels stated that one measure of effectiveness would be acceptability by the public that would motivate legislators to move forth on legislation to support congestion pricing. During 1990, congestion was a high priority. In 1995, congestion is no longer on the top of the priority list as a major concern.

Jacki Bacharach stated that a congestion pricing symposium will be held on September 8th in the Inland Empire. The workshop is being co-sponsored by the Federal Highway Administration (FHWA), the Humphry Institute at the University of Minnesota, and the Claremont Graduate School.

8. Status Report on PM10 Task Force

Staff gave a briefing (Attachment X) on the PM10 Task Force. Staff indicated that the Task Force consists of 45 members whose charter is to review and develop the PM10 measures which are identified in the 1994 AQMP for inclusion in the 1997 PM10 submittal. Staff highlighted projects that are funded under the PM10 Tech Program.

9. Rule 1501/1501.1/ISRs Activity Report

As an update to the Activity Report, a draft agenda for the District-sponsored parking management symposium to be held on September 29, 1995 is included as Attachment XI. Boardmembers Mikels, Haggard and Soto volunteered to serve as moderators for separate panel discussions.

10. Legislative Update

Staff distributed an updated legislative report (Attachment XII).

11. EIR Review & Preparation

Staff distributed an updated EIR report (Attachment XIII).

12. Public Comment

There were no public comments.

(895rpt.doc)