BOARD MEETING DATE: July 11, 1997 AGENDA NO. 26


Report:

Mobile Source Committee

Synopsis:

The Mobile Source Committee met Friday, June 27, 1997. Presentations were made on the following items: RTAC Activities Related to SB 836; Rule 2202 Status Report; Rule 2202 - AQIP; Performance-Based Bus Policy; AQMP Implementation; and Air Quality-Related GIS Applications. The next meeting is July 25, 1997, at 9:30 a.m., in Conference Room CC-8.

Recommended Action:

Receive and file this report.

Roy Wilson, Chair
Mobile Source Committee


ATTENDANCE: Present: Committee Chair Dr. S. Roy Wilson, Committee Vice Chair Nell Soto, and Committee Members Mee Hae Lee and Norma Glover. In the absence of Committee Members Ron Loveridge and Marvin Braude, and pursuant to the Procedures for Standing Committees of the Governing Board, adopted March 8, 1996, Board Chairman Jon Mikels appointed himself as an ad hoc Member of the Mobile Source Committee for the meeting on June 27, 1997 only. Attachment 1 is an attendance roster.

MOBILE SOURCE COMMITTEE DISCUSSION ITEMS

1. Update on RTAC Activities Related to SB 836

The SB 836 Consultant work on methodology to quantify emission reductions is scheduled to be completed mid July. To date, the Regional Transportation Agencies’ Coalition (RTAC) Oversight Committee has given comments to the final draft report and appendices. The consultant will forward the final draft Executive Summary to the Oversight Committee for review and comment next week.

The next RTAC-TAC meeting is scheduled for July 8, 1997.

2. Rule 2202 Status Report

A brief background report was given, including SB836 impacts. For the calendar year 1996, worksites include employers with 100 to 250 employees. Out of the 4,389 worksites under the program, 73% chose to comply with the employee commute reduction program; 13% participated in the AQIP program, and 14% selected the emission reduction strategies. Under the emission reduction strategies option, a facility may continue their rideshare program and at the same time choose one of the options to make up their shortfall with either old vehicle scrapping, alternative fuel vehicles, or off-peak ridesharing, etc. Facilities that filed under the AQIP option was more effective in meeting the emission reduction targets for Rule 2202 than those employers that continued their rideshare efforts.

As of May 6, 1997, out of the 1,654 worksites subject to the rule, 71% chose to comply with the Employee Commute Reduction Program, 9% participated in the AQIP program, and 20% selected the emission reduction strategies.

Staff stated that there were 557 worksites that participated in the AQIP program from July 1995 to December 1996. This represents the total number of worksites since the inception of the program which includes Rule 1501.1 implementation. The graph presented shows that larger companies participate more in the AQIP program than the smaller companies.

Staff believes that Rule 2202 is working because of the flexibility of the rule, as well as the fact that it allows the employers to lower their program implementation costs by combining several options. As a result, greater emission reductions have been achieved by Rule 2202 in comparison to Rules 1501 and 1501.1. Staff will continue to monitor the market so that the plan fee is appropriately set.

Staff indicated that outreach efforts are offered not only to the regulated community but also to other interested parties in the form of: ETC training; information workshops; satellite office assignments; air quality investment program assistance; and a technical assistance team. (Attachment 3.)

In the past, ETC training was offered by six certified trainers that conducted initial training as a requirement for all employers that chose to go with employee commute reduction. These certified trainers offered a training that consisted of a two and one half day curriculum at an average cost of $400. The location of these classes varied throughout the four county area. There were quite a few class cancellations because of the number of trainers and because of the number of sessions that each of them offered. The two other reasons were the result of SB 836 and many employers were choosing the other options for which an ETC is not a required. In the early part of this year the Board approved the staff’s recommendation to enter into a no-cost contract with one certified training provider, TVS Consulting to provide this training. This certified trainer offers a two day curriculum at a standard cost of $200. As a result of having one trainer and fewer classes scheduled, the class cancellation has been greatly reduced. In addition to providing classes throughout the Basin, TVS Consulting conducts classes at AQMD.

Another outreach effort that staff offers is information workshops. A year and a half ago, this was called the Annual Update Training. It was an eight-hour training that required all ETCs to attend. Presently, the informational workshop is offered quarterly on a voluntary basis since the update training is no longer required. The topics presented vary from quarter to quarter, and sessions are free. They are open not only to Rule 2202 employers but also to other interested parties. Announcement of these information workshops are done through mailings, as well as through the AQMD Internet Home Page.

The Satellite Office Assignments is a new outreach effort that the staff offers. The Employee Commute Reduction Program (ECRP) Evaluation staff goes out approximately one day a week to their assigned geographic work area. They offer employers assistance in completing the ECRP and also to provide assistance with ECRP policy and rule clarification. They also schedule group meetings with ETC networks, as well as multi-site employers. For example, space is being provided by the Department of Airports and the Riverside Transportation Commission. Also, an invitation was received from the 12th Council District TMA to have staff occupy a space in their new Chatsworth Depot office.

Staff offers the following assistance to prospective employers complying with the AQIP: review draft proposals; provide feedback to enhance submitted proposals; and publish quarterly AQIP Fund Amount and Emission Target on AQMD Internet Home Page. Vice Chair Nell Soto raised the question as to how employers get the information on these outreach efforts. Staff assigned to each geographic area sends out notices and invitations to the employers.

The Technical Assistance Team (TAT) status update focused mainly on the team’s 1996 outreach efforts. The purpose of the TAT is to promote understanding of the various compliance options provided by Rule 2202. This outreach effort is provided to the employers through one-on-one meetings at their worksites. The team provides emissions calculations and cost analysis spreadsheets. This allows the employers to determine the cost of choosing other options versus the cost of staying with the traditional rideshare program. In addition, the TAT assists the
employers that decide to switch over to the other options in completing their registration forms.

Out of the 262 employers that were contacted by the TAT, 154 employers switched over to the options. In looking at the emissions reductions impact of these employers that chose the options, the VOC reduction is 64.6%, the NOx reduction is 41.6%, and CO reduction is 476.4% above and beyond the peak AVR that these companies have attained by implementing their traditional rideshare programs.

In looking at the cost-savings impact of the employers that chose the options, staff recently conducted a telephone survey. The 90 out 154 employers that are still under Rule 2202 were contacted. Of the 90 employers contacted, 79 employers responded to the survey and 65 of them were able to report cost information. This information indicated that on the average, each company saved a total of $19,000 per site per year. On a per employee basis, the average cost savings per window employee was $70 per year.

The 1997 objectives of the TAT are: contact 350 - 400 employers; provide outreach materials to Chambers of Commerce; and provide assistance and information to local governments in partnership with AQMD’s Intergovernmental Affairs.

3. Rule 2202 - AQIP (Attachment 4)

Staff gave a brief report on the AQIP funding recommendations for the first quarter of 1997. At the time of registration, any employer electing to participate in the annual AQIP compliance option shall annually invest in the restricted AQMD fund $60 for each employee reporting to work in the peak window or $125 for each employee for a three-year compliance. The total amount of $904,282 that is available to be spent consists of: the new investments - $414,319; the amount carried forward - $243,924; and the accrued interest from 7/1/95 to 3/31/97 - $246,039. There were five proposals received from old vehicle scrapping companies. One proposal came from Anaheim Transportation Network, Walt Disney & City of Anaheim. This program is a transportation demand management project for a CNG flexible rail feeder system.

The recommendation for funding for the first quarter 1997 are two of the five proposals from old vehicle scrapping: Ecology Auto Wrecking for $453,093.60 and Pick Your Part for $404,300. These two programs will meet the emission reductions needed to be achieved under Rule 2202 as well as providing an emission reductions surplus.

4. Performance-Based Bus Policy (Attachment 5)

Staff gave an overview on the current actions by the Metropolitan Transportation Authority (MTA) to revise their alternative fuel bus policy. In looking at the urban bus NOx emissions, older diesel buses emit approximately 10 grams per brake horsepower hour (g/bhp-hr); the 1996 ARB engine emission standard for transit buses is 4.0 grams; and current CNG buses emit about 2.0 grams. Heavy-duty engines emission standards are expected to be 2.0 g/bhp-hr after year 2002.

With regards to public health considerations, ARB is considering identification of diesel exhaust as a toxic air contaminant. Diesel particulate is very small and is easily inhaled. There is a general consensus that diesel exhaust is a potential carcinogen and significant contributor to ambient PM levels.

A class action suit, initiated by the Bus Riders Union, against MTA, requires implementation of additional bus service. This policy does not require MTA to purchase clean fuel buses. But the Bus Riders Union has expressed a strong preference for alternative fuel buses.

The buses operated by MTA by fuel type are: 333 Alcohol; 300 compressed natural gas; and 1,400 diesel buses. The problem that MTA is facing is that many of their buses are past what is considered their useful life by Federal Transportation Administration (FTA). Part of this problem is caused by the fact that approximately 900 of their existing buses were purchased at one time, just before the Los Angeles Olympics. Currently, MTA has 250 CNG buses ordered but not yet received. They also have a bid on the street which was initially for another 220 CNG buses but later amended to include "clean" diesel and low floor chassis options. In response to the Bus Rider Union, the Mayor of Los Angeles has asked that they immediately exercise the option to purchase an additional 200 CNG buses.

The MTA currently has a policy of purchasing only alternative fuel buses. The MTA staff has been directed to study the possibility of a performance-based "Bus Technology Policy". This policy would require an analysis of cost, performance, and other factors prior to purchase of buses, including diesel technologies. MTA staff is currently developing such a policy for presentation to the MTA Board, after consultation with AQMD, SCAG, Coalition for Clean air, and others close to this issue.

In comparing the capital costs, the CNG buses will approximately cost $30,000 to $50,000 more than diesel buses. Also, purchase of CNG buses requires additional fueling infrastructure and building modifications. MTA staff estimates $4.1
million will be needed to purchase 3 compressor units at 3 sites and 2 compressor units to be added at a later date. $1.4 million will be needed to modify the facilities, including methane detection and improved ventilation.

The possible incentives/sources for MTA to offset the costs of alternative fuel buses include: AB 2766 Discretionary funds; CMAQ money; and Rule 1612 emissions credits. There are other possible financing assistance options as well. The Gas Company is investigating whether MTA qualifies for gas pricing break. Lower fuel costs may also be available through a fuel broker. Finally, Third Party Financing may be available to help offset fueling facility costs.

Staff recommended to the Mobile Source Committee that AQMD continue to encourage MTA to continue its alternative fuel bus purchase policy and to work with MTA staff on future bus procurements. The Committee added a third recommendation; that being, for AQMD staff to assist MTA identify alternative fuel buses and fuel infrastructure funding.

The motion to approve staff’s recommendation was seconded.

5. AQMP Implementation Status Report (Attachment 6)

Staff gave a brief update on the implementation of the 1997 AQMP. Staff indicated that the Federal government is moving forward with new clean air standards for ozone and particulates. Achieving such standards will likely entail more emission reductions than called for in the 1997 AQMP.

With regards to the progress report on VOC, if the Board moves forward and approves Rule 1122, the 1997 target to reduce 44 tons a day through AQMD action will be achieved by the end of this year. However, ARB has not been able to complete any of its rule adoptions and is expected to have a shortfall for the year. Their draft vehicle scrapping regulation is being delayed. Staff indicated that ARB is planning to have a symposium at the end of September 1997, to talk about ways to make up the shortfall. The U.S. EPA has gone to a consensus process and was able to move forward on their Measure 6 but they still have a considerable amount to do, especially in the area of clean fuel technology.

Since the AQMD has implemented the RECLAIM program, staff indicated that there was very little to do this year in the area of NOx control. The ARB has some programs targeted at the heavy-duty engine emissions reduction projects which are falling behind schedule. The U.S. EPA has moved forward with some of their rules, as well as negotiations with the major rail operators so that by the year 2010 they may achieve much of their intended targets.

With regards to PM10, staff reported that the Board approved Rule 1186 and amendments to Rule 403. Staff stated that AQMD is on its way to meeting the target for this year. The remaining action items relate to the wood working rule and the restaurant rule.

In looking at the VOC emission reductions for future years, the graph shows that the bulk of the near-term reduction has been targeted in 1997. Most of the task to be completed is long range (i.e., past year 2000). Staff intends to begin holding workshops and symposia to generate ideas as to how to further define and obtain the long-range targets.

The graph on responsibility by agency for future years in NOx emission reductions shows that both the ARB and the U.S. EPA have a lot more to accomplish, in the area of heavy-duty vehicle controls.

On the particulate side, the target in 1998 for AQMD is related to the work being done in the dairy area and said rule development is on schedule.

Because of the recent action by the Natural Resources Defense Council (NRDC) and the Coalition for Clean Air, staff gave a short report on the measures included in the 1994 AQMP that were deleted from the 1997 AQMP. Staff indicated that through technical analysis, it was determined that these measures were not necessary to achieve the clean air standards. The bulk of emission reduction strategies not included were indirect source rules where legislative restrictions were placed on AQMD.

Staff stated that the other group of measures included in the 1994 AQMP but not brought forward to the 1997 AQMP are part of the contingency strategy for evaluation at a later date. These are identified for future study and possible incorporation in future plans should additional measures be needed.

6. Air Quality-Related GIS Applications

Staff gave a presentation on a new technology that is currently used in AQMD called the Geographic Information System (GIS). The GIS uses existing information in the form of pictures, photos, and tabular data from the data bases. It takes images and combines them with location data and database information to show patterns and relationships which in turn aids in making decisions, policies, and other related matters.

This application is used by AQMD for air quality impact analysis. Staff said that the GIS is able to show the impacts for a rule development activity in a manner that is visually available. Another feature of the GIS is the ability to present technical information to non-technical audiences in a manner that they can more easily understand.

7. Legislative Update

Written report submitted, no comments. (This report is included in the July Board package as an attachment to agenda item number 25 "Legislative Committee.")

8. Rule 2202 Activity Report/Upcoming Events

Written report submitted, no comments. (Attachment 7)

9. EIR Review and Preparation

Written report submitted, no comments. (This report is included in the July Board package as an attachment to agenda item number 21 "Lead Agency Projects and Environmental Documents Received by the AQMD.")

10. Other Business

No comments.

11. Public Comment

There were no public comments. The meeting was adjourned at 11:20 a.m.

Attachments

1. Attendance Roster
2. Rule 2202 On-Road Motor Vehicle Mitigation Options Status Report
3. Rule 2202 On-Road Motor Vehicle Mitigation Options Outreach Status Report
4. AQIP Funding Recommendations - 1st Quarter 1997
5. Performance-Based Bus Policy/Motion by Director Mel Wilson
6. AQMP Implementation Status Report
7. Rule 2202 Activity Report/Upcoming Events