South Coast Air Quality Management District

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Mobile Source Committee

SYNOPSIS: 

The Mobile Source Committee met Friday, July 28, 2000. Following is a summary of that meeting.

RECOMMENDED ACTION:

Receive and file.

Jon D. Mikels, Committee Member
Mobile Source Committee

Attendance

The meeting started at 9:00 a.m. Present: Committee Member Jane Carney, Committee Member Jon Mikels (Chairman for this Committee meeting), and Board Chairman William Burke (arrived at 9:10 a.m., and participated via videoteleconference). Absent: Committee Chair Cynthia Coad, Vice Chair Roy Wilson, Committee Member Norma Glover, and Committee Member Ron Loveridge. The attachment is an attendance roster.

ACTION/DISCUSSION ITEMS:

1. Rule 2202 – AQIP
   Proposal of Recommendations for 3^rd and 4^th Quarters of 1999,
   and 1^st Quarter of 2000
   Staff’s presentation to the Committee for their consideration included: summary of available funding; proposals received – 9 proposals in total; emission reduction credits balance; and cost effectiveness of each proposal. Staff recommended that a contract be awarded to each of the following three companies:
   

The Vons Companies, Inc., in the amount of $56,544, for LPG Yard Tractors;

Stater Bros. Markets, in the amount of $99,018, for LPG Yard Tractors; and

Ocean Air Environmental (Arapaho), in the amount of $352,426, for Diesel Tugboat Repower

Less than a quorum was present during the discussion of this item; those Committee Members who were present communicated their concurrence.

INFORMATION ITEMS:

2. Rule 2202 Annual Status Report
   The Rule 2202 Status Report covered three areas: Operations, Outreach; and Compliance Program. With regard to operation activities, staff reported that 1,571 worksites were subject to Rule 2202. Three basic programs were available to the employers: Employee Commute Reduction Program (ECRP); Air Quality Investment Program (AQIP); and Alternative Emission Reduction Strategies (ERS). During the period 1996 – 1999 program activities have moved more towards the ERS program. Emission reductions achieved under 1999 AQIP program have exceeded set targets. Outreach efforts by the AQMD included Employee Transportation Coordinator (ETC) training; transportation programs web page; satellite office assignments; AQIP assistance; and technical assistance team. The Compliance Program was initiated to track the programs and companies were randomly selected for review. In conclusion staff reported: that Rule 2202 continues to be successful in reducing mobile source emissions; that Rule 2202 has provided added flexibility; and that AQIP exceeds emission reduction targets.
   
   
3. Transportation Conformity Update
   Staff gave a report on SCAG’s special meeting on Transportation Conformity on July 7, 2000. At the meeting SCAG staff presented an analysis of the emission shortfall as it related to the current RTP conformity finding. An approved RTP needs to be in place before the conformity lapses by October 1, 2000. Both VOC and NOx shortfall would begin immediately with VOC shortfall reaching approximately 19 tons/day by 2010. NOx shortfall is temporary and about 4 tons/day in 2002. The emission shortfall is primarily due to limited effectiveness of the current I&M program, non-implementation of M1 measure, and partial implementation of the LEV II Program. According to SCAG’s latest estimates, federal transportation funding of up to $1.4 billion for the region for the next two fiscal years will potentially be delayed or lost. Meanwhile, the CARB staff has identified a list of measures, including several heavy-duty diesel programs, to make up the shortfall. CARB staff has been in discussion with U.S. EPA to determine the acceptable SIP amendment process. For a number of months, AQMD staff has requested that CARB rectify this matter in an expeditious manner. However, CARB’s staff has been hesitant to commit formally to a rulemaking schedule and subsequent implementation of adopted measures. Chairman Burke is assisting AQMD staff in final resolution of this matter. Staff will continue to provide a monthly update to this Committee as well as a follow-up to the full Board.
   
   There was a brief discussion on potential projects that would be halted in the event of loss of federal transportation funding. Staff advised that SCAG staff will be invited to give an update on this subject at the next Committee meeting.
   
   
4. Status Report on Fleet Rule Development
   Status reports on PR1194, PR 1186.1 and PAR 431.2 were provided to the Committee.

PR 1194
PR 1194 will apply to passenger transportation services at airports, which include taxi and shuttle services. Implementation is proposed to begin on July 1, 2001. Currently staff is working on two outstanding issues: definition of a "fleet", and financial issues. The primary financial burden on individual taxicab owner/driver is the purchase cost. Staff is examining financial incentive packages as well as potential exemption provisions.

There was a discussion on the interpretation of the term "fleet", and the financial impact of this proposed rule on the individual taxicab owner/driver. Staff mentioned that currently the option of propane retrofit is being examined. Staff is examining if there are ways to make this rule cost-neutral. In addition, the Small Business Assistance program is being examined to provide help in this area.

PR 1186.1
Staff reported that there has been no change to the proposed rule since last month. The emission benefits have been refined and are calculated at 110 tons/year for NOx, and 11 tons/year for PM. Total annualized costs are $1.7 million, and cost-effectiveness is approximately $20,000/ton.

PAR 431.2
Staff’s report focused on comments received and staff’s preliminary responses. Comments received cover potential supply shortage and price volatility; need for the expedited implementation schedule; small refiner exemption; more stringent sulfur limit; and rule approvability by CARB. Staff’s responses indicated: there is a 20-60% reserve capacity; the cost will be affordable by refiners – an average of 2 cents/gallon (approximately 0.4% of net profit in 1999); the feasibility to significantly expand the export market for a period of 2 years is questionable; there are two refiners with ULSD import capability; AQMD variance proceeding is available; and staff is continuing to explore ways to further minimize impacts. Staff’s responses also indicated that expediting the program will achieve the following: emission reductions of 2.7 TPD SOx and 1.1 TPD PM10; cancer risk reduction of 46 in-a-million; equivalent emission reduction achievable by retrofitting 42,000 school buses; and leveling playing field between mobile and stationary sources. Staff is continuing to examine ways to further address these concerns and conducting working group meetings with refiners and distributors.

Chairman Burke asked staff to look into the possibility of getting the legislature to allow tax relief for refiners who produce clean diesel fuels. Chairman Burke also inquired in what way the AQMD could react to CARB’s letter of disapproval released on July 18, 2000. The District Counsel responded that AQMD could still submit the rule to CARB if the Board approved the rule. If the CARB disapproved the rule at that point, AQMD could challenge the disapproval in court on the basis that CARB’s primary mandate is to protect the clean air.

5. CARB Diesel Management Plan (Mobile Sources)
   Staff provided the Committee with a copy of CARB’s draft diesel risk reduction plan presentation at their July 13, 2000 workshop. Staff reported that AQMD’s Air Toxic Control Plan has a placeholder for CARB’s diesel plan. The key elements of this draft plan include identification of categories of engines, emission and risk estimates, emission reduction approaches, strategies for mobile and stationary sources, and fuel strategies. This draft plan estimates a risk reduction of 75% and 85% in Years 2010 and 2020, respectively. Final draft is due to be released for review on September 8, 2000 and presented at the CARB Board meeting on September 28, 2000.
   
   
6. Rule 2202 Activity Report
   Rule 2202 Summary Status Report submitted, no comments.
   
   
7. Monthly Report on Environmental Justice Initiatives
       Item #4 – CEQA Commenting:
       a. CEQA Document Commenting Update: Written report submitted, no comments.
   
   
8. Monthly Report on Environmental Justice Initiatives
       Item #7 – Cleanup Incentives for Diesel: Written report submitted, no comments.
   
   
9. Other Business
   None.
   
   
10. Public Comment
    Jon Owyang of Market-Based Solutions made the following public comment. He commented that currently the vehicle scrapping program under Rule 2202 is not an economical project for generating emission credits for CO and VOC. As a result emission credits are in short supply. Market-Based Solutions have been looking and have found projects similar to the AQIP that can generate emissions at a lower cost.

The meeting adjourned at 10:42 a.m.

Attachment
Attendance Roster

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
MOBILE SOURCE COMMITTEE
JULY 28, 2000

ATTENDANCE ROSTER

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