BOARD MEETING

DATE: January 12, 1996

AGENDA NO. 4

PROPOSAL: Set Hearing to Amend Paragraph (f)(7) of Rule 2202 - On-Road Motor Vehicle Mitigation Options Pertaining to Fees for the Air Quality Investment Program

SYNOPSIS: At the December 1995 Board Hearing, the Governing Board adopted Rule 2202 - On Road Motor Vehicle Mitigation Options, and directed staff to bring back information for further evaluation of appropriate fees for participation in the Air Quality Investment Program (AQIP), and to consider possible exemption of primary and secondary schools. A staff report is being prepared on these issues and a February hearing is being scheduled relative to the fees specified in Rule 2202. Any action to consider exemption of schools would need to occur at a later date to allow completion of necessary CEQA analysis.

COMMITTEE: Mobile Source, December 15, 1995 - Based on new information provided by staff, the Committee is recommending that the Board proceed with the review of Rule 2202 fees, and discussion of potential uses of the AQIP fund. However, the Committee is not recommending exemption of schools from Rule 2202.

RECOMMENDED ACTION:

1. Set a public hearing to receive further input on AQIP fees and to consider adjustments, if appropriate.

James M. Lents, Ph.D.

Executive Officer

BW:CLW:LT:CD

Background

At the time of adoption of Rule 2202 - On Road Motor Vehicle Mitigation Options, the Governing Board directed staff to perform additional analysis on the fees for participation in the Air Quality Investment Program. Staff was also directed to perform an analysis to determine what the implications would be of exempting primary and secondary schools from Rule 2202, and to bring forward recommendations at the earliest possible date.

Proposal

The fees established in Rule 2202 were primarily based on the implementation costs of old vehicle scrapping. The current fee levels appear to be set at the lower end of the cost range as established by free-market conditions. However, staff is currently in the process of conducting a survey to further document the current costs of car scrapping and will bring forward any new information at the February 1996 Board meeting. The final staff recommendation will be based on the results of this survey.

Additionally, a Request for Qualifications (RFQ) will be released to establish a qualified scrappers list and to gather information on estimated 1996 costs for vehicle scrapping. This information will be brought to the Board by mid year. In addition, a separate policy conference will be conducted on the best use of AQIP funds. The conference is also tentatively scheduled for February.

At its December 15, 1995 meeting, the Mobile Source Committee received preliminary information on the potential impact of exempting schools from Rule 2202, as well as potentially available compliance options specific to schools that would likely address issues raised by schools. Staff will report on this item at the February Board meeting, including updated information provided to the Mobile Source Committee.

California Environmental Quality Act (CEQA)

Relative to consideration of adjusting the Rule 2202 fees, the AQMD has reviewed the proposed project pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15002(k) - Three Step Process, to determine which type of CEQA document to prepare for the proposed action. The AQMD has determined that any action relative to adjustment of fees is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) - Review for Exemption, since the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

In the event that the Governing Board decides not to change the AQIP fees at this time, then there is no action that would require a CEQA review and, therefore, a Notice of Exemption would be unnecessary.

As noted above, exemption of schools from Rule 2202 could cause potential environmental impacts that would require preparation of an appropriate CEQA document. Such a document will be prepared in the event that the Board wishes to proceed with consideration of that limited exemption.