BOARD MEETING DATE: March 12, 1999 AGENDA NO. 39




REPORT:

Technology Committee

SYNOPSIS:

The Technology Committee met on February 26, 1999. Major items discussed included an overview of dbb Fuel Cell development and commercialization efforts and a review of a proposal to ARB for Carl Moyer Memorial Air Quality Standards Attainment Program funds; Technology Advancement items reflected in the regular Board Agenda for the March Board meeting; updates on TAO reauthorization bills AB 38 and SB 98 and a summary of Technology Advancement Advisory Group meeting; presentations on completed Technology Advancement projects; and monthly reports on environmental justice initiatives 2, 7, 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 March 26, 1999 at 11:30 a.m. in CC-8.

RECOMMENDED ACTION

Receive and file.

Hal Bernson, Chair
Technology Committee


Attendance: Present were Committee Vice Chair Leonard Paulitz and Committee member Norma Glover. Committee member Roy Wilson and Committee Chair Hal Bernson participated by video-teleconference.

Public Comment Period - There was no public comment.

Technology Advancement Feature Presentation

  1. Overview of dbb Fuel Cell Development and Commercialization Efforts - Mr. Rick Cooper, Managing Director of dbb Fuel Cell Engines Corporation presented an overview of fuel cell systems and the automotive fuel cell alliance (video). He presented test results, plans for commercialization, remaining issues to solve for commercialization, and areas for cooperation with government agencies.
  1. Review of a Proposal to ARB for Carl Moyer Memorial Air Quality Standards Attainment Program Funds - Cindy Sullivan of Technology Advancement provided a review of the Carl Moyer Memorial Fund indicating:

March Board Agenda Items

  1. Execute Contract to Cosponsor L/CNG Fueling Station Evaluation and Upgrade - The L/CNG fueling station at UPS Ontario Airport has experienced some operational problems since completion. Significant LNG technology improvements and advancements have been made since that time. The proposed project would incorporate this advanced technology into this station. The design, engineering and development completed in this project will be documented and made available to industry, ensuring future LNG and L/CNG refueling station advancement. Total cost to the AQMD for this project will not exceed $35,000; the Gas Research Institute will provide $40,000, for a total project cost of $75,000.
  1. Execute Contract to Cosponsor Development and Demonstration of the Mack E7G Gas Engine at 400 Horsepower - The emission reductions exhibited by natural gas heavy-duty engines are well documented. The majority of in-service application of these engines is in local delivery trucks rather than over-the-road trucks. Class 8 trucks demand high horsepower (400 or more) and torque to meet their needs. The only currently available 400 HP natural gas engine is the Caterpillar C-12, a dual fuel engine. Staff proposes to cosponsor the development and demonstration of the Mack E7G 400 HP natural gas engine. Total cost of this project is $2,756,000; AQMD cost-share will not exceed $400,000.
  1. Execute Contract to Cost-Share Development and Demonstration of Advanced Fast-Fill Natural Gas Compressor to Refuel Natural Gas Vehicles - A major barrier to the market penetration of NGVs is the high cost faced by public and private fleets to purchase, install and operate NGV refueling stations. OceanAir Environmental has proposed to develop and demonstrate an advanced, fast-fill natural gas compressor with potentially lower capital and operating costs than conventional compressors. The proposed advanced compressor refueling station will refuel NGVs owned and operated by the other participants in the project, namely the cities of Calabasas, Malibu, Agoura, Westlake and Hidden Hills. Total cost of this project is $592,000. The proposed AQMD cost-share is $200,000.
  1. Execute Contract for the Design of an Interactive Fuel Cell Museum Exhibit at the California Science Museum - In implementing and commercializing fuel cell technology, it is important to familiarize the public, particularly our youth, with how fuel cells work, what their applications may be, and the technology’s environmental benefits. The California Science Center Foundation, in conjunction with the AQMD, will contract for the planning, design and specification of an interactive fuel cell museum exhibit. AQMD cost for this contract will not exceed $75,000.
  1. Execute Contract to Cost Share Request for Proposals for Demonstration of Small-Scale Natural Gas Liquefaction Plant - A small-scale natural gas liquefaction plant using innovative technology may significantly reduce the cost and increase availability of LNG to the end user. The CEC intends to release a RFP for development and demonstration of a small-scale liquefaction plant. The goal of this project is to develop up to two in-state liquefaction plants with a minimum production capability of 5,000 gallons per day of liquefied natural gas at a sustainable fuel cost of $0.30 per gallon of LNG. The AQMD cost share portion shall not exceed $200,000.
  1. Execute Contract to Purchase Instruments for Automatic Gas Calibration Systems - On August 14, 1998, the Board approved the release of an RFQ to purchase 10 automatic gas calibration systems for the ambient air monitoring network and in support of the PAMS program. This action is to execute a contract with Environics Inc. in the amount of $135,312.00 for the purchase of 10 automatic gas calibration systems. Funds for this purchase are included in the FY 1998-99 Budget.

    Chairman Bernson indicated items 3 through 8 were consent items and asked for a motion for approval. ON MOTION OF LEONARD PAULITZ, SECONDED BY NORMA GLOVER, AND UNANIMOUSLY CARRIED, THE COMMITTEE APPROVED AGENDA ITEMS 3 THROUGH 8 AS RECOMMENDED BY STAFF.

Updates

  1. TAO Reauthorization Bills AB 38 and SB 98 - Lupe Valdez, Deputy Executive Officer of Public Affairs and Transportation, presented an update on the progress of legislative bills to reauthorize the Clean Fuels Program. SB 98 goes before the Senate Transportation Committee on Tuesday, March 2, 1999, and AB 38 will go before the corresponding Assembly committee the next week. There is no opposition to the bill going into this session of the Legislature.
  1. Summary of Technology Advancement Advisory Group Meeting - Andy Abele of Technology Advancement reviewed the January 20, 1999 meeting of this group. Items addressed at that meeting included: definition of the Clean Fuels Program; review of program direction; and definition of clean fuels. It was the consensus of the working group to "stay the course" and continue with its current research agenda.
  1. Report on Completed Technology Advancement Projects

    Fred Minassian of Technology Advancement presented final reports on cosponsorship for projects for Development and Demonstration of Emission Control Technologies for Commercial Underfired Charbroilers and Measurement of Evaporative Emissions from Off-Road Equipment.

    Chairman Bernson left the meeting at 12:37 p.m. and Vice Chair Leonard Paulitz chaired the rest of the meeting.
  1. Monthly Report on Environmental Justice Initiatives 2, 7 and 10

    Vice Chair Paulitz indicated all Committee members had received the Environmental Justice Initiatives for review and asked if there were any questions or comments. Hearing none, these updates were not verbally presented. The monthly status reports were handed out and are attached hereto as Attachments B, C and D.
  1. Other Business - There was no other business.

    The meeting was adjourned at 12:40 p.m.

Attachments

Attachment A - Attendance
Attachment B - Environmental Initiative # 2 Status Report
Attachment C - Environmental Initiative # 7 Status Report
Attachment D - Environmental Initiative #10 Status Report

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Attachment A - Attendance

Dani Fernandez AQMD Board Assistant
Douglas Kim AQMD Board Assistant
Maureen Toal AQMD Board Assistant
Peter Whittingham Assistant to Supervisor Antonovich
Chung Liu, DEO, S&TA AQMD
Lupe Valdez, DEO, Public Affairs and Transportation AQMD
Mel Zeldin, ADEO, S&TA AQMD
William Wong, District Counsel's Office AQMD
Jill Whynot, Stationery Source Compliance AQMD
Sam Atwood, Public Affairs AQMD
John Higuchi, S&TA AQMD
Andy Abele, S&TA AQMD
Mike Nazemi, S&TA AQMD
Paul Wuebben, S&TA AQMD
Fred Minassian, S&TA AQMD
Cindy Sullivan, S&TA AQMD
Mike Bogdanoff, S&TA AQMD
Abid Latif, S&TA AQMD
Ranji George, S&TA AQMD
Dory Kilgour, S&TA AQMD
Lisa Kasper ARB
Rick Cooper dbb Fuel Cell Engines Corp.
Stephanie Hamilton Edison Technology Solutions
Rich Remillard Arcadis, Geraghty & Miller
Mahesh Talwar OceanAir Environmental

Attachment B

Environmental Justice Initiative No. 2 - MATES-II and Microscale Study

Status Report - February 1999

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.

January/Early February Actions:

1. MATES-II:

2. Microscale Study:

3. ATSTRG meeting held February 17, 1999

1. Development of methodology to determine diesel component of elemental carbon
2. Field program status and milestone report

3. Toxics emission inventory recap and status report.

Upcoming Items:

Attachment C

Environmental Justice Initiative No. 7 - Cleanup Incentives for Diesel
Attachment B

Monthly Status Report
January - February 1999

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

Continue Statewide Coordination

Promote Technology Advancement

Coordinate with Transit Districts

Coordination with MSRC and Local Government

Conduct Public Education and Outreach

Attachment D

Environmental Justice Initiative #10
Public Comment, Rules 1401 and 1402
Status Report
February 1999

UPDATE ON ENVIRONMENTAL JUSTICE INITIATIVE #10

BACKGROUND
  • E.J. Initiative #10: "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 Toxic Air Contaminants."
  • January Board Action
    - Added new carcinogens
    - added sodium hydroxide and hydrochloric acid
    - 2 items continued until February:
    3changes to effective dates for some compounds; and 3carcinogenicity of nickel compounds
    - Held Public Consultation meeting on January 14, 1999
  • February Board meeting
    - public hearing closed
    - deliberations continued to March meeting

REPORT CONTENT

TOPIC DESCRIPTION
Summary of Testimony from January & February Board meetings
  • Information provided (February)
    - TERA – review process
    – AQMD contractor (toxicologist)
    - EPA (written)
  • In opposition:
    - several speakers for MFASC
    3economic impact
    3carcinogencity not proven
    3difference between soluble &
    insoluble nickel
    - written correspondence
  • In support of adding nickel:
    - ARB
    – OEHHA
    - lead SRP member in 1991 (written)
    – Epidemiologist (AQMD contractor)
    (written)
    – Communities for a Better
    Environment
    – Coalition for Clean Air
    - American Lung Association
Key Issues
  • Carcinogenicity of soluble nickel
    - potent carcinogen according to state
    experts
    - OSHA & ACGIH do not classify as
    carcinogen
    - many reputable agencies (federal &
    international) concur with the state

    and list soluble nickel as a
    carcinogen (SRP, IARC, ICNCM,

    NIOSH, NTP) [ ARB – Air Resources Board; OEHHA – Office of Environmental Health Hazard Assessment; SRP – Scientific Review Panel; IARC – International Agency for Research on Cancer; ICNCM – International Committee for Nickel Carcinogenicity in Man; NIOSH – National Institute of Occupational Safety and Health; NTP – National Toxicological Program]
  • Economic Impacts
    - full economic impact assessment
    conducted
    3special contract to identify and
    develop cost impacts with industry
    3REMI model
    - staff disagrees with concerns
    expressed
    3all legal requirements met
  • TERA Review Process
Staff Recommendation
  • Add nickel compounds to list
    3strong weight of evidence
    3controls available
    3costs to industry consistent with
    other toxic reductions
    3important public health protection
Cumulative Impacts – Rule 1402
  • Working group meeting January 28, 1999
  • Coordinating with MATES II
  • General principles developed
  • Proposals being developed
  • Rule changes anticipated in early summer

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