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REPORT:

Technology Committee

SYNOPSIS:

The Technology Committee met on April 24, 1998. Major items discussed included a presentation on ARB’s Scrapping Program, an update on the Rule 1610 audit, Technology Advancement items reflected in the regular Board Agenda for the May Board meeting, a summary of the Technology Advancement Advisory Group meeting, a presentation on the TAO Vision Statement, an update on the Technology Advancement Clean Fuels Program Reauthorization, review of a contract for Phase II Assessment Study of Architectural Coatings, 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 May 15, 1998 at 11:30 a.m. in CC-8.

RECOMMENDED ACTION

Receive and file this report.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Attendance: Present were Committee Chairman Wayne Nastri, Committee Vice Chair Leonard Paulitz, and Committee member Norma Glover.

1. Presentation on ARB’s M1 Scrapping Program - Bill Lovelace of ARB gave an overview of the ARB’s M1 Scrapping Program. He also reviewed ARB’s methods for determining the three-year remaining life span for vehicles that are scrapped. He indicated that the three year remaining life used in AQMD’s Rule 1610 is a conservative number and that ARB supports this number.

Public Comment: Jon Owyang of Market Based Solutions indicated that his firm had conducted a survey of the people who turned in cars for scrapping as to their estimate of the remaining life left in the vehicles. He indicated that their opinion

of the remaining life of the car was the same as that of ARB. Chairman Nastri stressed the need for AQMD to work closely with ARB on the M1 Program.

2. Rule 1610 - Audit - Carol Engelhardt of the District Counsel’s office, handed out a report summarizing the history of Rule 1610 as well as AQMD staff’s evaluation. A significant number of suggested improvements were provided. Chairman Nastri asked that the Acting Executive Officer prepare a distillation of the report, conduct analyses, and come back to the Technology Committee with a recommendation at its June 26, 1998 meeting. Barry Wallerstein, Acting Executive Officer, indicated that staff intends to expeditiously process this matter. Staff will prepare appropriate rule modifications for a set hearing at the June Board meeting. A public consultation meeting on proposed changes will also be held.

3. Execute Contract to Evaluate Low NOx Combustion Systems for Natural Gas-Fired Large Water Heaters and Small Boilers - Large water heaters and small boilers are estimated to emit over 14 tons of NOx per day in the Basin. Rule 1146.2 establishes NOx limits for these units that will reduce their contribution by about 9 tons per day. Based on results of a competitive solicitation Energy & Environmental Research Corporation has been selected to conduct the implementation study proposed in conjunction with Rule 1146.2 to evaluate the technical performance and costs of low NOx combustion systems for large water heaters and small boilers. The AQMD cost to fund this project shall not exceed $85,000. The Committee reviewed the information presented, and unanimously noted their approval of staff’s recommendation.

4. Execute Contracts to Develop and Demonstrate Zero-Emission Technologies for Utility and Lawn and Garden Equipment Used in Commercial Applications - In January 1998, the Board approved the release of an RFP to solicit bids in the following project areas: (1) develop and demonstrate zero-emission technologies for utility and lawn and garden equipment used in commercial applications in an amount not to exceed $350,000; and (2) develop and demonstrate low-emission, alternative fuel and zero-emission technologies for off-road equipment, in an amount not to exceed $600,000. Of the two proposals received for Project (1), Metallic Power, Inc. has been selected for award, in an amount not to exceed $350,000. At this time, deferral of an award for Project (2) is recommended to enable completion of a more thorough technical evaluation. The Committee reviewed the information presented, and unanimously noted their approval of staff’s recommendation.

5. Execute Contract to Assist Relocation of Solar-Based Hydrogen Generating Facility - Clean Air Now, Inc. (CAN) designed and implemented the solar-powered, hydrogen-generating facility to refuel hydrogen vehicles at the Xerox facilities in El Segundo, CA. It is proposed to relocate this facility, which has operated successfully since January 1, 1997, to the Sunline Transit Agency facility near Palm Desert, California. This relocation would assist in the refueling of hydrogen-fueled buses that Sunline Transit Agency plans to purchase in the future. Staff is recommending AQMD support of $50,000. Total project cost is $300,000. The Committee reviewed the information presented, and unanimously noted their approval of staff’s recommendation.

6. Execute Contract to Cost-Share Development of Enhanced Efficiency Natural Gas Engines - In February 1997, the AQMD entered into an agreement with the Trucking Research Institute (TRI) to manage the solicitation and management of projects with engine manufacturers for the development of enhanced efficiency natural gas engines. The project is co-funded by the U.S. Department of Energy (DOE) and the Gas Research Institute (GRI). Key personnel at TRI managing this program have left the company. This proposal would transfer management of the project to GRI. The total cost of this project is $1.2 million. Total AQMD funding for this contract will not exceed $350,000. The Committee reviewed the information presented, and unanimously noted their approval of staff’s recommendation.

7. Technology Advancement Advisory Group Meeting Summary - Andy Abele, Manager Clean Fuels Program, Technology Advancement, gave a summary of the March 21, 1998 meeting of the Technology Advancement Advisory Group (TAAG). The Group will meet quarterly to review and offer input to the Technology Advancement Plan updates, as well as provide guidelines to establish priorities for proposed program areas. They will also help in bringing emerging technologies to the attention of industry. The Technology Advancement Advisory Group chose Dr. Blair Folsom as a member of the AQMD Advisory Council, and Robert Nicksin as the alternate. Chairman Nastri noted his satisfaction with the TAAG and his expectation to see the fruits of this committee put into the commercialization of emerging technologies.

8. Technology Advancement Vision Statement - Andy Abele handed out the Technology Advancement Vision for 1997-98, a status report on the Technology Advancement Program covering the program’s vision, background, and proposed future direction. It was noted that a guiding principle of the program is to make a difference. Chairman Nastri concurred, indicating that the Technology Committee could be used as a vehicle to reach out to the manufacturers to involve them at an early stage in bringing emerging technologies into the marketplace.

Public Comment: John Billheimer of the Reality Group suggested an appendix to the Vision Statement so that project reports can more easily be located.

9. TAO Clean Fuels Program Reauthorization - Lupe Valdez, Deputy Executive Officer Public Affairs and Local Government Assistance, indicated that AB 2194 had passed its first hearing before the Assembly Transportation Committee. A calendar of upcoming hearings was presented, along with a list of agencies/organizations that have expressed support for AB 2194.

Chairman Nastri noted the excellent job done by Board Members Norma Glover and Nell Soto in gathering support for the bill, and asked that he be kept current on all future meetings in Sacramento so he and other Governing Board members could meet with legislators and legislative staff in support of AB 2194.

11. Execute Contract for Phase II Assessment Study of Architectural Coatings - The AQMD requires a study to assess the application and durability characteristics of architectural coatings within the categories of industrial maintenance; non-flats; primers, sealers, and undercoaters; quick-dry enamels; quick-dry primers and sealers; and waterproofing sealers. Proposals from firms specializing in analysis of coatings were evaluated by a technical advisory committee, composed of industry representatives and other interested parties. The Committee reviewed the information presented, and unanimously noted their approval of staff’s recommendation.

10. 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 - Dave Schwien, Senior Air Quality Engineering Manager, Stationary Source Compliance, presented a status report on Environmental Justice Initiative #8, Advanced Field Inspection Technology. A monthly status report was handed out and is attached hereto as Attachment D.

Initiative #10 - Jack Broadbent, Assistant Deputy Executive Officer, Stationary Source Compliance, presented a status report on Environmental Justice Initiative #10, Rules 1401 and 1402. A monthly status report was handed out and is attached hereto as Attachment E. He further noted that staff proposes to amend Rule 1401 to: add only compounds with risk values; no automatic update mechanism; add a table of compounds indicating proposed risk factors and rule amendments to add; guidelines with de minimis levels; implementation 60 days after adoption; and no dry cleaner exemption.

Public Comment: John Billheimer indicated that architectural coatings need to be factored into the toxics rule.

Other Business - There was no other business.

Public Comment Period - Public comment has been included under individual agenda items.

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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Status Report - April 1998

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.

March/Early April Actions:

1. Equipment Procurement Status:

· All Mobile Platforms (3 new + 2 from ARB) have been received and are being readied for field use

· Most gaseous and particulate monitors received and in process of acceptance testing

2. MATES-II - Schedule Update:

· Four sites began sampling first week in April

(Burbank, Los Angeles, Long Beach, Fontana)

· Three sites to start within next two weeks

(Pico Rivera, Anaheim, Rubidoux)

· Three new sites pending final agreements with host agencies

· Huntington Park (Should start by May 12)

· Compton (Should start by May 19)

· Wilmington (Should start by June 4)

3. Microscale Study:

· AB2588 facilities plotted on aerial photos of selected communities

· Initial communities selected

· Mobile platform #1 (Van Nuys or Torrance)

· Mobile Platform #2 (Costa Mesa or Montclair/Pomona)

· Mobile Platform #3 (Hawthorne to begin by April 29, Pacoima in early June)

4. ATSTRG Actions:

· ATSTRG meeting held on April 15, 1998

· Review of status

· Review of microscale inventory process

· Presentation on risk assessment by OEHHA

· Tour of mobile platform and sampling equipment

5. Public Outreach

· Combined PM2.5 and toxics monitoring public consultation sessions held
April 21-23, 1998

Upcoming Items:

· Continue deployment of MATES-II sites

· Finalize agreements for the three new sites

· Install equipment and begin sampling

· Begin microscale inventory process

· Finalize specific locations for Mobile Platforms #1 and #2

· Begin Mobile Platform #3 microscale monitoring

· Finalize/Initiate MATES-II inventory contract

· Next ATSTRG meeting May 20, 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

· AQMD Staff reviewed AB 1368 (Villaraigosa) language with staff of the City of LA. Based on these discussions, the bill has been amended to address City concerns.

· AB 2194 (Washington), the bill to re-authorize the AQMD Clean Fuels Program and extend its funding, passed its first policy committee, Assembly Transportation, on April 20, 1998.

Promote Technology Advancement

· As part of the ICTC project, a fueling workshop was held at Lucky Grocery facilities in Buena Park. Lucky's houses over 400 trucks at this site. They have applied to the MSRC for funding assistance for the purchase of 25 LNG trucks. Fuel suppliers and fuel facility installers provided personnel of Lucky's and others (including OCTA) with information on facility installation logistics and cost and the cost and delivery of LNG.

· Staff attended a briefing to Von's/Safeway to explain available alternative fuel options for their fleet. Staff of ICTC made a similar presentation to representatives of Ralph's.

· The three above-mentioned companies have all be served with a notice of intent to sue by NRDC, citing violation of Proposition 65 requirements at their truck terminals. One possible way of mitigating the suit may be to utilize alternative fuels.

Continue statewide coordination

· The Incentive Program Implementation Team of the Truck Working Group met in Sacramento on April 9. Members of this group currently include CEC, ARB, EPA Region IX, South Coast, San Diego, San Joaquin, Ventura, Sacramento, and Bay Area air districts. The purpose of this group is to promote and implement incentives for the purchase or retrofit of low emission medium- and heavy-duty engine technologies. At the April 9 meeting, the group discussed possible amendments to AB 1368/SB 1857, implementation of air district incentive programs, a possible LNG cost model, and possible local liquefaction assessment. The group plans to meet again in early June.

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.

April 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.

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

- Only one RFP response was received March 20, 1998. The RFP review panel determined that this proposal was inadequate. As a result, the RFP was modified based on phone call comments from those that did not bid. The RFP was re-released for bidding on April 14, 1998.

· Establish a Peer Review Group

- A fourth and fifth subject expert have been selected for the five-member peer review group.

May 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.

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

- The re-released RFP responses are due May 22, 1998 and will be reviewed during the week of May 26, 1998.

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

· Establish a Peer Review Group

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

Presented at the April 17, 1998 Stationary Source Committee and the April 24, 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 Proposed Amendments to Rule 1401

· Add compounds

- 14 carcinogens
- 99 non-carcinogens (28 compounds for acute and 97 compounds for chronic hazard indices)

· Exemptions

- Dry cleaners, Wood product stripping, Emergency ICEs

· Add 112(g) requirements

Working Group Meeting Wednesday, March 27, 1998

· Key issues:

- Scope: include only compounds with risk values, do not include acute hazard index, add problem (risk driving) compounds only, no rule changes, develop de minimus levels and guidance documents

- Schedule: industry requests additional time to fully determine impacts on future expansion plans, environmental representatives recommend moving ahead as expeditiously as possible

- Update Mechanism: do not include, must be able to assess impacts

- Industrial Specific Exemptions: include more, do not have any exemptions - level playing field

- Relationship to Title III: do not exceed federal technological requirements

· Next meeting Friday, April 23 11:30 a.m.

Public Workshops (5 Locations)

· Attendance about 75 persons (Published in news papers and more than 25,000 notices mailed)

· Major comments:

- Similar to key issues (above)

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

- Permitting: adding significant permitting burdens, counter-productive to streamlining efforts, exempt small sources from Rule 1401 for modifications or relocation, what is the relationship to Titles III and V, request to clarify relationship with Rule 219 and mechanism of 100 meter cumulative impact analysis, need to review guidance document

- Socioeconomic Analysis: need more time to review analysis, should consider public health benefits

- More meetings needed during evenings and weekends to receive public/community comments

Changes Under Consideration

· Delay implementation until January 1999

· Adding only those compounds with risk values

· Adding industry specific exemption categories (i.e., nickel plating and film cleaning)

· Developing risk assessment guidelines with de minimus screening levels for all compounds

Schedule

· Close of Comment Period for Draft Rule, April 17, 1998

·Close of Comment Period for Draft Environmental Assessment, May 4, 1998

·Set Hearing May 8, 1998

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