BOARD MEETING DATE: March 12, 1999 AGENDA NO. 14

The U.S. EPA according to the federal Clean Air Act Amendments of 1990 has classified the South Coast Air Basin as "extreme" nonattainment for ozone, and "serious" nonattainment for fine particulate matter (PM₁₀) and carbon monoxide. Air quality in the Basin has improved, yet continued population growth, coupled with an increasing number of trucks and other heavy-duty vehicles and a multiplying of vehicle miles traveled (VMT), means that Southern California still experiences the worst air quality in the nation.

The Basin includes 39% of the state’s Class 7 and 8 trucks, and accounts for 43% of the state’s VMT for these vehicles. Among the state’s eight largest air districts, the South Coast accounts for 36.8% of the heavy-duty engine NOx emission inventory. The next highest air quality region is the Bay Area with 16.5% of the NOx emissions. Table 1 illustrates the comparison of population, attainment status and NOx emissions of the eight largest air districts.

Air District	Ozone Attainment Status	District Population	% of Population	Heavy-Duty Engine NOx Emissions*	% of Heavy-Duty Engine NOx Emission
South Coast	Extreme	15,270,900	50.5%	579.14	36.8%
Bay Area	Attainment	6,631,100	21.9%	260.21	16.5%
San Diego	Serious	2,763,400	9.1%	131.82	8.4%
San Joaquin	Serious	2,537,800	8.4%	199.49	12.7%
Sacramento	Severe	1,146,800	3.8%	134.37	8.5%
Mojave Desert	Severe	777,100	2.6%	105.7	6.7%
Ventura	Severe	727,200	2.4%	30.1	1.9%
Santa Barbara	Attainment	400,800	1.3%	30.1	1.9%

* Includes only light heavy duty, medium heavy duty and heavy heavy duty diesel trucks in TPY. Data taken from CARB Predicted California Vehicle Emissions Ozone Planning Inventory model and used in ARB staff allocation.

Almost 60 percent of the Basin’s emissions inventory can be attributed to on-road mobile sources. The majority of heavy-duty vehicles in the Basin are powered by diesel engines, which contribute significantly to the Basin’s emissions inventory. The District has long recognized the adverse air quality and health impacts of diesel exhaust. The AQMD’s Environmental Justice Initiative No. 7 targets the reduction of diesel exhaust in the Basin. The Board reaffirmed its position supporting the purchase and use of alternative fuel vehicles in transit and other fleets at its October 1998 meeting. At the January 1999 Board meeting, the Board adopted a "Children’s Air Quality Agenda" to pursue additional measures to protect children from the adverse health effects of air pollution.

For 10 years, the AQMD has been successful in cosponsoring the development and demonstration of advanced, low-emission clean fuel technologies. Some of these technologies, particularly medium- and heavy-duty alternative fuel engines, are being commercialized. However, the market entry of these low emission diesel alternatives are slowed by higher cost and limited infrastructure. In 1998, Governor Wilson and the California Legislature authorized $25 million to fund an incentive program for low emission, heavy-duty engines. ARB established the Carl Moyer Memorial Air Quality Standards Attainment Program to administer these funds, primarily directed at reducing NOx emissions. ARB has developed program guidelines and funding criteria, and intends to allocate the funds to local air districts for program implementation. The Moyer Program, by encouraging emissions reductions beyond those required by law, regulation, or other agreements, is intended to accelerate progress to reduce pollutant emissions and help the state meet federally-mandated clean air deadlines. This funding is intended to cover the incremental cost of cleaner on-road, off-road, marine, and locomotive heavy-duty engines.

Staff proposes that the AQMD request up to $12,000,000 of the $25 million available in ARB’s Carl Moyer Program for this fiscal year. The AQMD has several distinctions that make it appropriate to grant this level of funding. The South Coast Basin is the only area designated as "extreme" nonattainment for ozone. In addition, the Basin has been identified as "serious" nonattainment for fine particulate matter and carbon monoxide. According to the Air Quality Management Plan, in 2000, approximately 59% of the Basin’s emissions inventory can be attributed to on-road mobile sources.

Data from ARB’s Predicted California Vehicle Emissions Ozone Planning Inventory model indicates that, of the eight major air districts, the South Coast has 50% of the population. According to ARB’s diesel exhaust exposure assessment document, people in the Basin are exposed to the highest outdoor concentrations of diesel exhaust in the state (3.6 micrograms per cubic meter compared to 1.1 microgram per cubic meter in the Sacramento area and 2.5 micrograms per cubic meter in the Bay Area). Thus, diesel exhaust is a threat to the health of our 15 million residents.

The proposal recommended for submittal to ARB for Carl Moyer funding is attached.

AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low emission, alternative fuel technologies within its Technology Advancement Office. In addition to supporting the development of engine technology, the program has supported improved efficiency of natural gas engines, and development of standards for the design and installation of natural gas fuel systems on vehicles. The AQMD has supported the role of the Interstate Clean Transportation Corridor (ICTC) in commercializing low-emission alternative fuel technologies since its inception in 1996. The funding that the AQMD expects to receive from the Carl Moyer Program could fund hundreds of low emission trucks, and transit and school buses, in addition to off-road vehicles and equipment, such as construction, port and marine equipment.

Staff has prepared a proposal to the ARB for a minimum of $11,273,020 but as much as $12,000,000 of the available Carl Moyer funds. The AQMD is required to match this funding on a 1:2 basis, or about $5.64 million spent or earmarked for similar projects since July 1, 1998. This cost share may be provided by a variety of resources consistent with ARB criteria, including AB2766, select Air Quality Investment Program projects, and Clean Fuels Program funds. Specific funding information will be included in a separate Board Letter after ARB has reviewed the air district proposals and awarded a specific amount of funding to the AQMD. Activities are being coordinated with the MSRC and other interested parties.