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REPORT:

Technology Committee

SYNOPSIS:

The Technology Committee met on March 27, 1998. Major items discussed included feature presentations on the GasRail USA Project and a presentation on zinc-air batteries. Technology Advancement items reflected in the regular Board Agenda for the April Board Meeting were reviewed. Updates and reports included a presentation on a VOC Program Opportunity Notice, an update on the Technology Advancement Clean Fuels Program Reauthorization, an update on the Rule 1610 audit, a discussion on Rule 1150.1, and monthly reports on environmental justice initiatives 2, 7, 8, and 10. A summary of these topics with the Committee's comments is provided, together with an attendance roster. The next Technology Committee meeting will be on April 24, 1998 at 11:30 a.m. in CC-8.

RECOMMENDED ACTION:

Receive and file this report.

Wayne H. Nastri, Chairman
Technology Committee

Attendance: Present were Committee Chairman Wayne Nastri, Committee Vice Chair Leonard Paulitz, and Committee member Norma Glover. Committee member Roy Wilson participated by conference phone until 12:45 p.m. Vice Chair Leonard Paulitz left the meeting at 1:07 p.m., returning at 2:00 p.m., and participated in voting on agenda item No. 3 and the motion to add an item to the agenda.

Technology Advancement Feature Presentations

Update on GasRail USA Project - Jon Leonard of Technology Advancement presented an overview of the emission contributions of locomotives and rail road operations in the Basin, and the framework of the AQMP and the State Implementation Plan to reduce those emissions. David Meyers, of the Southwest Research Institute in San Antonio, Texas provided an overview of the GasRail USA project and how the low-emission LNG locomotive will be deployed in the Metrolink locomotive fleet. A discussion then ensued about how to motivate General Motors Electro-Motive to speed up deployment of the locomotives.

Jim Ortner, representing Southern California Regional Rail Authority (SCRRA), indicated the strong commitment of the SCRRA Board to supporting this technology.

Presentation on Zinc-Air Battery - Jerry Mader of Electric Fuel Limited briefed the Committee on the development of zinc-air batteries and the potential application of the technology in medium- and heavy-duty applications. He described the attractiveness of the technology in terms of specific energy, cost, maintenance, and environmental impacts. Its technical feasibility has been demonstrated in Europe. A new type of infrastructure to exchange and re-fuel the batteries will be needed. Additional studies are required to determine the feasibility of application in fleets in the United States.

April Board Agenda Items

1. Execute Contract to Conduct Market Feasibility Study of Zinc-Air Battery Technology - Electric Power Research Institute (EPRI) has proposed to conduct a market feasibility study of mechanically rechargeable zinc-air (MRZA) battery technology, especially with respect to medium-duty and heavy-duty vehicle applications. Low-energy densities of conventional batteries tend to restrict the range of such vehicles. MRZA technology, developed by Electric Fuel, Ltd., has significantly higher energy density and has the potential for overcoming such barriers in delivery vans, transit buses and trucks. The total cost of this project is $95,000, with AQMD cost-share not to exceed $25,000.

   Vice Chair Paulitz asked what ARB’s position was on this matter. Jack Kitowski of ARB indicated there were concerns related to economics and marketability of the technology, and that there was a need for this type of marketing study. Chairman Nastri asked when to expect a report back on the project and was informed, by Mr. Mader, that it could be expected by the end of summer. The Committee reviewed the information presented, and unanimously noted their approval of staff’s recommendation.

2. Execute Contract to Establish an Electric Vehicle Loan Program for State and Local Government Agencies - Attempts by original equipment manufacturers and California state and local agencies to encourage fleet purchases of electric vehicles have met with limited success. Some government agencies are currently required by the federal Energy Policy Act to incorporate alternative fuel vehicles into their fleets. Municipal and private fleets face this requirement in 2003. The proposed program will establish an electric vehicle/portable charger loan program, directed at state and local governmental fleets. The program will be managed by ARB with the cooperation of the California Department of General Services. Total project cost is $532,000. AQMD cost-share will not exceed $205,000. California Energy Commission, through an existing contract with AQMD, will provide $122,000; ARB will provide $205,000. One Committee member left the meeting before the vote on this item and, therefore, less than three members were present. However, the remaining Board Members noted their approval of staff’s recommendation.

3. Execute Contract to Provide Technical Support to Facilitate Introduction of LNG Engine Technologies and Establishment of LNG Fueling Facilities - To optimize the effectiveness of the Technology Advancement program, it has been advantageous to supplement in-house technical resources and expertise with outside assistance. The proposed contract with USA Pro, and specifically Gary Pope, principal, will provide technical support to facilitate the introduction of LNG engines and the establishment of LNG fueling facilities. Total cost to the AQMD will not exceed $30,000. One Committee member left the meeting before the vote on this item and, therefore, less than three members were present. However, the remaining Board Members noted their approval of staff’s recommendation.

4. Authorize Purchase of Alternative Fuel Vehicles for AQMD Alternative Fuel Vehicle Loan Program - The AQMD Alternative Fuel Vehicle (AFV) loan program demonstrates new AFVs to public and private organizations so that potential purchasers may familiarize themselves with available low-emission AFV products. As new technologies become available, vehicles are added to the program. It is proposed that AQMD purchase two CNG vehicles and one propane vehicle for use in the AFV loan program. The total cost of these purchase will not exceed $80,600. One Committee member left the meeting before the vote on this item and, therefore, less than three members were present. However, the remaining Board Members noted their approval of staff’s recommendation.

5. Execute Contract to Evaluate Diesel Particulate Sampling Methodology and Determine Zone of Influence of Ultrafine Particle Fraction of On-Road Emissions - Diesel sampling and measurement procedures for particle number and size from mobile sources are not standardized, and the applied laboratory procedures do not reflect the actual on-road conditions. The Coordinating Research Council (CRC) has issued an RFP to evaluate and refine the sampling and measurement procedures and compare them to actual on-road conditions. Total project cost is approximately $1,200,000. AQMD’s contribution shall not exceed $100,000, with the balance being co-funded by the CRC, the Engine Manufacturers Association, and the National Renewable Energy Laboratory. One Committee member left the meeting before the vote on this item and, therefore, less than three members were present. However, the remaining Board Members noted their approval of staff’s recommendation.

Updates and Reports

Technology Advancement Vision Statement - Due to time constraints, this item was continued to the next Technology Committee meeting.

Presentation on VOC PON - Robert Pease of Technology Advancement, gave an overview of the Program Opportunity Notice (PON) for VOCs. The target is to identify projects which can be useful in the support of long-term measures identified in the 1997 AQMP. The PON will be extensively advertised and will be open for a period of 60 days to maximize the exposure and opportunity for businesses to respond. Proposals are targeted to be received in mid-May.

TAO Clean Fuels Program Reauthorization - Lupe Valdez, DEO of Public Affairs and Local Government Assistance, reported that the reauthorization bill will go before its first Committee on April 13, 1998. It will be heard in the Assembly Transportation Committee at 1:30 p.m. Prior to that time, TAO staff and Board Members will meet with legislative staff in Sacramento. Committee member Norma Glover stressed the need to closely monitor progress on this matter.

Rule 1610 - Audit - Frances Keeler of the District Counsel’s office, reported on the field trip, attended by Board members and staff, to the Old Vehicle Clearing House in Sun Valley. Some of the issues raised were: (1) how to determine the useful life remaining in a vehicle; (2) guidelines for acceptability of a vehicle into the Vehicle Scrapping Program and the need for clear guidance in this area; (3) what items should AQMD staff inspect at these facilities; (4) should there be a third-party, independent inspector; (5) should cars be crushed in their entirety or parts be available to be sold; and (6) should insurance be required, and all vehicles registered and smog checked.

Chairman Nastri asked that the Rule 1610 Committee chair (Carol Engelhardt) quickly forward the written comments from committee members to Board members to review. He would like to see the draft documents so that Board members can maintain an awareness of what is going on regarding this issue.

Rule 1150.1 - Discussion - Carol Coy, Assistant Deputy Executive Officer Stationary Source Compliance reported on staff’s efforts to address the issue of liability in the definition of owner and operator responsibilities, and whether the Rule will impact project financing. William Thompson of Stationary Source Compliance reviewed his contacts with 6 local financial institutions as well as a specialty firm in San Francisco. He indicated that banks manage risk and insurance takes care of the downside of environmental risks. It was his conclusion that additional risk is completely manageable.

Monthly Report on Environmental Justice Initiatives

Initiative #2 - Mel Zeldin, Director of Applied Science and Technology, presented a status report on Environmental Justice Initiative #2, Ambient Toxic Monitoring. A monthly status report was handed out and is attached as Attachment B

Initiative #7 - Andy Abele, Manager Clean Fuels Program of Technology Advancement, presented a status report on Environmental Justice Initiative #7, Cleanup Incentives for Diesel. A monthly status report was handed out and is attached hereto as Attachment C.

Initiative #8 - Carol Coy, Assistant Deputy Executive Officer Stationary Source Compliance, presented a status report on Environmental Justice Initiative #8, Advanced Field Inspection Technology. The open bidding process to secure expert consulting services to study the advanced monitoring and inspection equipment resulted in one unqualified bid. The staff recommend to reissue the RFP with enhanced language. A monthly status report was handed out and is attached hereto as Attachment D.

Initiative #10 - Jill Whynot, Planning and Rules Manager, Stationary Source Compliance, presented a status report on Environmental Justice Initiative #10, Rules 1401 and 1402. Mr. John Billheimer, a member of the public, indicated there will be opposition if more carcinogens are added to the list. A monthly status report was handed out and is attached hereto as Attachment E.

 

Other Business - Lupe Valdez indicated that Congressman Esteban Torres had requested a letter of support from AQMD to increase DOE’s fuel cell R&D budget. Chairman Nastri moved and Committee member Glover seconded that this item be put on the agenda. Since Vice Chair Leonard Paulitz had returned to the meeting, a quorum existed and a vote was taken and unanimously passed. It was further moved, seconded and carried that staff draft a letter of support for Governing Board Vice Chair Norma Glover’s signature.

Chung Liu passed out a summary of the recent Technology Advancement Advisory Group meeting. Chairman Nastri requested a full presentation on this matter at the next Technology Committee meeting.

Public Comment Period - Richard Sampson of Ecology Auto Wrecking asked the status of the Vehicle Scrapping Program. He indicated his confusion of the status of the scrapping program and the need for guidance. Chairman Nastri indicated that the Rule is still in effect, but that the matter of whether the Governing Board would approve further expenditures for vehicle scrapping was currently on hold.

Attachments

Attachment A - Attendance

Attachment B - Environmental Initiative # 2 Status Report

Attachment C - Environmental Initiative # 7 Status Report

Attachment D - Environmental Initiative # 8 Status Report

Attachment E - Environmental Initiative #10 Status Report

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Carolyn Syms Luna	AQMD Board Assistant
Jennifer Korn	AQMD Board Assistant
Jennifer Chicconi	AQMD Board Assistant
Barry Wallerstein, Acting Executive Officer	AQMD
Lupe Valdez, DEO Public Affairs & Local Government Assistance	AQMD
Carol Coy, ADEO Major Sources	AQMD
Chung Liu, ADEO Technology Advancement	AQMD
Mel Zeldin, Director Planning, Transportation and Information Management	AQMD
Catherine Wasikowski, Director Planning, Transportation and Information Management	AQMD
Bill Wong, District Counsel’s Office	AQMD
Frances Keeler, District Counsel’s Office	AQMD
Jill Whynot, Stationary Source Compliance	AQMD
Dave Schwein, Stationary Source Compliance	AQMD
William Thompson, Stationary Source Compliance	AQMD
Sam Atwood, Public Affairs	AQMD
Woody Hastings, Public Affairs	AQMD
Andy Abele, Technology Advancement	AQMD
Mike Nazemi, Technology Advancement	AQMD
Paul Wuebben, Technology Advancement	AQMD
Jon Leonard, Technology Advancement	AQMD
Chris Abe, Technology Advancement	AQMD
Cindy Sullivan, Technology Advancement	AQMD
Ranji George, Technology Advancement	AQMD
Robert Pease, Technology Advancement	AQMD
Dory Kilgour, Technology Advancement	AQMD
Jack Kitowski	ARB
David Meyers	Southwest Research Institute
Lee Wallace	PE/SoCal Gas
Jerry Mader	Electric Fuel Limited
Gary Pope	USA PRO
Kyle Davis	SCE-ET
Carol Gomez	Raytheon
Jim Ortner	OCTA
Richard Sampson	Ecology Auto Wrecking
John Billheimer	Small Business Coalition

AQMD Staff, with peer review feedback, will design and conduct a program of ambient monitoring for toxic hot spots. Expanded, accurate, reliable, suitable data on exposure levels will enable us to begin to apply that knowledge to effective problem-solving.

February/Early March Actions:

1. ATSTRG Actions:

2. MATES-II:

3. Equipment Procurement Status:

4. Process and Schedule

Upcoming Items:

• Draft Protocol Document, when completed, to be reviewed by ATSTRG

• Receipt and check-out of special monitoring equipment

• Completion of site locations for Wilmington, Huntington Park, and Compton

• Finalization of initial Microscale Study sites

• Beginning of public notification process

• Combined PM2.5 and toxics monitoring public consultation sessions scheduled for April 21-23, 1998

• Next ATSTRG meeting April 15, 1998

The Governing Board will pursue a set of Initiatives at the local, state, and federal level to incentivize the early clean-up or removal of diesel engines in the Basin. Research indicates that low-income communities and communities of color experience disproportionate air quality impacts associated with diesel engine use.

Support funding incentives

• AB 1368 Villaraigosa and SB 1857 Brulte are in draft form and expected to be in print form by next week. These co-joined bills would provide incentives for low-emission heavy-duty engines. On March 20, the Legislative Committee recommended cosponsorship of both bills.

• As a point of information, on the federal level, Representative John Ensign (R-NV) has introduced HR 3376, a bill named the "Cleaner Burning Fuels Incentive Act of 1998." The proposed bill would provide an income tax credit equal to 50 cents per gasoline gallon equivalent of propane, natural gas, and methanol used as a motor vehicle fuel.

Coordinate with MSRC and Local Government

• The deadline for the AB2766 Transit Bus solicitation was March 24. Applications received were as follows:

• The AB2766 heavy-duty vehicle solicitation remains open until June 30, 1998. Qualifying applications received thus far include American Foods (Lucky Markets), 25 LNG trucks, and Waste Management of the Desert, 7 CNG refuse trucks.

• The AB2766 MSRC matching funding for local government subvention solicitation also closed. Although most applications for vehicles were for light-duty AFVs, Santa Monica submitted an application for 22 CNG trucks, representing a variety of applications.

Promote Technology Advancement

• As part of the ICTC project, Gladstein and Associates is assisting Lucky Markets in implementing fueling facilities for their trucks.

• The C/LNG fueling facility at UPS, Ontario Airport, has been completed. Currently, in addition to UPS, Conway Trucking is fueling two trucks at this site.

Continue statewide coordination

• The Truck Working Group is scheduled to meet April 9, 1998 in Sacramento. This group, which includes the ARB, CEC, and other air districts, helps coordinate individual programs to ensure that our programs encourage truck owners to purchase low emission technologies.

The ARB is holding a public hearing on April 23, 1998 in Sacramento to consider amendments to heavy-duty vehicle regulations: 2004 emission standards; averaging, banking; and trading; optional reduced-emission standards; certification test fuel; labeling; maintenance requirements and warranties.

Initiative: The AQMD staff will formulate a plan to use modern advances in technology for enhanced field inspection purposes to better detect pollution problems identified by the public and investigate ways to enhance AQMD’s field presence.

March Progress:

• Refine Testing and Analysis Technologies and

• Improve In-Field Enforcement Capability

- The Board-approved work plan to investigate the technical feasibility and cost of using detection and monitoring instrumentation for routine inspections continued to be implemented. An analysis to determine the nature and sources of complaints has been completed. Staff concludes that the most helpful route to improving confirmation of the source of complaints is to encourage more timely reporting of public complaints and reducing AQMD inspector response time. The technology assessment involved in this initiative will help determine if there is enhanced real-time field monitoring that will significantly improve source identification. Continued use of site-specific monitoring in community complaint situations is recommended.

• State-of-the-Science Contract Study to Identify Advanced Inspection, Testing, and Analytical Technology

- Phone calls received regarding RFP submittals were oriented to questions regarding RFP language clarity and concerns about the brevity of the five week period allowed for consultant work recommendations.

- RFP responses were received March 20, 1998. The RFP panel review of proposals began during the week of March 23, 1998.

• Establish a Peer Review Group

- A fourth subject expert has been selected for the five member peer review group.

April Goals:

• Refine Testing and Analysis Technologies and

• Improve In-Field Enforcement Capability

- Work plans will continue to be implemented according to the Board-approved proposals.

- Internal evaluation of laboratory technologies will be completed.

• State-of-the-Science Contract Study to Identify Advanced Inspection, Testing, and Analytical Technology

- Conclude RFP response evaluation.

- Initiate development of May Board meeting recommendations regarding consultant selection for presentation to the Technology, Stationary Source, and Administrative committees.

• Establish a Peer Review Group

- The initial peer review panel meeting will be held in early April.

Presented at the March 20, 1998 Stationary Source Committee and the March 27, 1998 Technology Committee.

Initiative: The Governing Board will re-open for public comment the toxics significant thresholds for cancer and non-cancer impacts contained in Rule 1402 - Control of Toxic Air Contaminants from Existing Sources, and consideration of adding additional compounds and non-carcinogenic impact prevention into Rule 1401 - New Source Review of Carcinogenic Air Contaminants.

Status of Efforts:

Draft Rule, Staff Report, Environmental Assessment available for review

Possible Amendments to Rule 1401

• Add compounds

• Exemptions

• Add 112(g) requirements

Working Group Meeting Wednesday, March 4, 1998

• Well attended

• Major comments:

- Schedule: wait until MATES II, slow down, less compounds, existing rule needs more compounds and tighter thresholds immediately

- Compounds: do not add compounds without risk numbers, do not add acute hazard index, add only compounds that are problems, add nothing

- Risk assessment: methodology cumbersome, overly conservative, need de minimus levels in the rule (by mass and throughput)

- Permitting: adding significant permitting burdens, counter-productive to streamlining efforts, don’t make small sources comply with Rule 1401 for modifications or relocation, questions about relationship to Titles III and V, request to clarify relationship with Rule 219 and mechanism of 100 m cumulative impact analysis

• Next meeting Friday, March 27, 2-5 pm

Schedule

• Public workshops in 5 locations:

Friday, April 3, 1998--1 to 4 pm (Huntington Park)
Saturday, April 4, 1998--9 am to Noon (Riverside)
Tuesday, April 7, 1998--9 am to Noon (Diamond Bar)
Tuesday, April 7, 1998--6:30 to 9 pm (Van Nuys)
Wednesday, April 8, 1998--1 to 4 pm (Santa Ana)

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