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BOARD MEETING DATE: June 16, 2000 AGENDA NO. 35




PROPOSAL: 

Adopt Proposed Rule 1191 - Clean On-Road Light- and Medium-Duty Public Fleet Vehicles

SYNOPSIS: 

Proposed Rule 1191 will require public fleet operators with 15 or more vehicles to purchase low emission vehicles when adding or replacing light- and medium-duty vehicles in an existing fleet or forming a new fleet.

COMMITTEE: 

Mobile Source, March 24, 2000, April 28, 2000 and May 26, 2000, Reviewed.

RECOMMENDED ACTION:

Adopt the attached resolution:

  1. Certifying the attached Final Program Environmental Assessment for the Proposed Fleet Vehicle Rules; and

  2. Adopting Rule 1191 – Clean On-Road Light- and Medium-Duty Public Fleet Vehicles

Barry R. Wallerstein, D.Env.
Executive Officer


Background

The recent results from the AQMD Multiple Air Toxic Exposure Study (MATES-II) indicates that mobile source emissions are major contributors to the potential cancer risk from air pollution in the South Coast Air Basin. In addition, mobile source emissions have become the major emission sources to the ozone, fine particulate matter and carbon monoxide air quality problem in the South Coast Air Basin. Despite current regulatory actions that have reduced overall mobile source emissions dramatically over the past twenty years and will continue emission reductions in the future envisioned in the AQMP, additional mobile source emissions reductions are needed in the near-term to reduce population exposure to mobile source toxic air pollutants. As such, the AQMD Governing Board has directed staff to evaluate ways to reduce mobile source emissions within the AQMD’s regulatory authority.

Under the California Health and Safety Code (HSC) Section 40919(a)(4), "serious" or worse ozone nonattainment areas may require "the use of a significant number of low-emission motor vehicles by operators of motor vehicle fleets." The definition of "low-emission motor vehicles" is further defined in HSC, Section 39037.05. Section 39037.05 excludes the use of diesel fuel in the "low-emission" vehicle definition.

In addition to Section 40919(a)(4), under HSC Section 40447.5 the AQMD may adopt rules requiring public and private fleets with 15 or more vehicles to acquire "methanol or alternatively equivalent clean burning alternative fuel vehicles when adding to or replacing vehicles in an existing fleet or purchasing vehicles to form a new fleet" and to require that these vehicles be operated substantially on alternative fuels.

Proposal

For PR 1191, staff is proposing that beginning July 1, 2001, public entities such as local, state, and federal governments, and special districts such as air, water, sanitation, and school districts, purchase light- and medium-duty vehicles that are CARB certified to the "low-emission vehicle" hydrocarbon emission standards or cleaner which is approximately equivalent to LEV or cleaner vehicles. For this proposal, fleet operators with 15 or more light- and/or medium-duty vehicles would be require to purchase vehicles from a list of CARB certified vehicles to be prepared by the AQMD and updated every six months to reflect more recent CARB certified vehicles. There are currently numerous gasoline-fueled light- and medium-duty vehicles commercially available that would meet the requirements of PR 1191. In addition, cleaner gasoline-fueled and more alternative-fueled vehicles will become available as the vehicle emission standards are tightened.

PR 1191 provides a recognition of prior or future purchases or leases of alternative-fueled vehicles by allowing these actions to offset the purchase of a gasoline-fueled or diesel-fueled medium-duty vehicle not certified to the low-emission vehicle standard or cleaner.

At this time, PR 1191 provides exemptions to vehicles used for emergency and rescue such as police, fire, and paramedic vehicles. HSC, Section 40447.5 states that these vehicles be exempted until such time that the AQMD Governing Board makes a finding that the "alternative fuel is available at sufficient locations so that the emergency response capabilities of those vehicles is not impaired." PR 1191 also exempts vehicles used for testing/evaluation purposes, vehicles used in law enforcement surveillance and undercover activities, and services contracted by public entities such as landscape or office deliveries.

Public Process

In November 1999, staff originally proposed an umbrella on-road motor vehicle fleet rule (PR 1190) and a preliminary draft staff report was prepared and released in December 1999. Two public workshops were conducted (December 21, 1999 and January 12, 2000) at which over 700 members from the public attended in total. The most significant comments made were: costs associated with alternative-fueled vehicle purchases and maintenance, development of alternate-fueling infrastructure, availability of alternative-fueled engines/chassis specifications to meet certain medium- and heavy-duty vehicle applications, and that the rule development schedule was too aggressive and more time was needed for public review and input.

In response to these comments, staff proposed to separate the original PR 1190 into several rule development efforts that cover each of the specific fleet vehicle types (i.e., light- and medium-duty vehicles, transit vehicles and urban buses, refuse collection vehicles, school buses, street sweepers, heavy-duty vehicles, and airport ground access). The separation of PR 1190 into seven separate rules provided the public a better understanding of the impacts of the rule development and staff the ability to address rule implementation issues more specifically. In addition, the rule development schedule was extended to allow more time for the public to review and comment on each of the rule proposals. The preliminary draft staff report (dated December 1999) continued to serve as the preliminary staff report for the seven separate rule proposals.

Draft rule language for PR 1191 (the first in the series of "PR 1190" fleet rules), was released at the February 16, 2000 public workshop. Additional public workshops were conducted on March 10, 2000 and May 10, 2000 to solicit further public comments. A draft staff report on PR 1191 was released in March 2000 that represented a revision to the December 1999 Preliminary Draft Staff Report on PR 1190.

In addition to the public workshops, an overall fleet rule development working group was formed to provide review and comments on all of the fleet rule development efforts. The overall fleet rule working group focused on heavy-duty vehicle applications and the consideration of diesel fuel technologies. However, verbal comments were received relative to the ability to purchase diesel-fueled light- or medium-duty vehicles. Staff responded that HSC Section 39037.05 does not define diesel-fueled vehicles as "low emission vehicles." However, since there may not be a compliant medium-duty engine/chassis specification needed for a specific application, PR 1191 proposes a mechanism to allow purchases or leases of alternative-fueled vehicles to credit towards the purchase of a medium-duty gasoline- or diesel-fuel vehicle. In addition, PR 1191 provides that upon demonstration to the Executive Officer that a LEV or cleaner vehicle is not available commercially and the operator cannot make use of the alternative fuel vehicle purchase crediting, then the operator can purchase a non-compliant vehicle.

Policy Issues

AQMD staff received a significant number of comments relative to the development of the public fleet rules. However, many of these comments have been previously addressed through on-going dialogue with various public entities and consensus building in crafting a version of PR 1191 that is feasible to implement while providing air quality and toxic benefits. Two remaining issues are now being addressed relative to PR 1191: purchase of used vehicles and their conversion to alternative fuel usage and the assurance of available compliant medium-duty engines/vehicles. Staff believes that purchases of used vehicles with conversion kits could be allowed if the conversion kits have been certified by CARB and that the emissions levels are at the "low-emission vehicle" standard or cleaner. Relative to compliant vehicle availability, staff will monitor availability of medium-duty engines/vehicles and make recommendations for potential rule amendments. However, staff believes that if a specialty vehicle is needed by a fleet operation that such a purchase could still be made if there is a demonstration that the use of the alternative fuel purchase credit mechanism cannot be implemented and there is not an otherwise feasible compliant vehicle. To address the above issues, staff is recommending minor adjustments to PR 1191 to allow for these activities. The revisions are shown in Attachment D with the revised rule language for PR 1191.

Emission Reductions

PR 1191 would affect approximately 60,800 light- and medium-duty vehicles in the current public fleets today. Based on an average purchase/replacement rate of 10 percent per year, it is estimated that by 2010 hydrocarbon emissions would be reduced by 6.2 tons/year, nitrogen oxide emissions would be reduced by 1.45 tons/year and carbon monoxide emissions by 252 tons/year. In addition, there would be a reduction in air toxic emissions. Finally, staff believes that the example established by the government fleets can be leveraged with the general public for even greater emission reductions.

California Environmental Quality Act (CEQA)

In accordance with the California Environmental Quality Act (CEQA), the AQMD, as the Lead Agency, has reviewed the proposed fleet vehicle rules, which includes proposed Rule 1191. Pursuant to state CEQA Guidelines Section 15252, AQMD staff has prepared a Draft Program Environmental Assessment (PEA) for the proposed project which was released on March 10, 2000 for a 45-day public review and comment period. All comments received have been addressed and incorporated into the Final PEA for the proposed fleet vehicle Rules including PR 1191. The Draft PEA analyzed the potential adverse environmental impacts which are comprised primarily of cross-media impacts, including air quality, water resources, transportation, energy, hazards, public services and solid/hazardous waste, from installing air pollution control equipment. The analysis concluded that potential adverse impacts could occur as a result of short-term construction related air quality impacts. However, no significant adverse environmental impacts were found relative to PR 1191. Due to the bulk of this document, it has been initially provided to the Governing Board and parties providing written comments on the Draft PEA. Members of the public may receive copies upon request from the Public Information Center at no charge.

Socioeconomic Assessment

AQMD staff has also prepared a socioeconomic assessment for the Proposed Fleet Vehicle Rules which includes PR 1191. Based on the draft assessment, there is no financial impact for PR 1191 specifically since PR 1191 requires public entities to purchase the cleanest gasoline-powered or alternative-fuel vehicles that are commercially available. In addition, PR 1191 provides for the purchase of non-compliant vehicles through the alternative fuel vehicle purchase credit mechanism or further demonstration that non-compliant vehicles are needed but the alternative fuel vehicle purchase credit mechanism is not feasible. Due to the bulk of this document, it has been initially provided to the Governing Board and parties providing written comments on the draft document. Members of the public may receive copies upon request from the Public Information Center at no charge.

Resource Impacts

PR 1191 would require public entities to purchase low-emission light- and medium-duty vehicles at the time the public entities are adding or replacing light- and medium-duty vehicles in their fleets. It is envisioned that public fleet operators will specify in their procurement process the purchase of low-emission vehicles or that the vehicle be on a Rule 1191 compliant list provided by the AQMD. Staff believes that there will be minimal resource impacts on the AQMD since fleet operators keep records of their purchases and procurement information. There will be small administrative costs associated with random inspection of fleet operators for rule implementation and enforcement purposes and the tracking of the penetration of low-emission vehicles into the market. However, staff is recommending creation of a Fleet Rule Implementation Officer position.

Recommendation

Staff recommends that proposed Rule 1191 be adopted. The proposed rule will provide criteria pollutant air quality and toxic air pollutant benefits.

Attachments

A. Summary of PR 1191 Proposal
B. Rule Development Process
C. Resolution
D. Proposed Rule 1191 Language
E. Staff Report
F. Socioeconomic Assessment
G. Final Environmental Assessment

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