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Adopt Proposed Rule 1193 - Clean On-Road Residential and Commercial Refuse Collection Vehicles

SYNOPSIS: 

Proposed Rule 1193 will require public and private refuse collection fleet operators with 15 or more refuse collection vehicles to purchase rule compliant refuse vehicles when adding or replacing refuse collection 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 1193 – Clean On-Road Residential and Commercial Refuse Collection 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 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.

Several public and private refuse collection operators in the South Coast Air Basin have embarked on programs to purchase cleaner alternative fuel refuse collection vehicles over the past several years. Several municipal refuse collection agencies have used dedicated natural gas refuse collection vehicles in the past and are currently evaluating vehicles operating on "dual-fuel or bi-fuel" engines that run primarily on natural gas (either compressed or liquefied). Waste Management Inc. has been operating dedicated natural gas refuse collection vehicles in the Coachella Valley and is planning to expand the use of dedicated natural gas vehicles in the South Coast Air Basin. Taormina operating largely in northern Orange County has been operating dual-fuel refuse collection and transfer vehicles over the last five years. Lastly, other private refuse collection operators have applied under the Carl Moyer Program and to the Mobile Source Air Pollution Reduction Review Committee (MSRC) for funding to purchase dual-fuel engines for their refuse collection vehicles.

Proposal

For PR 1193, beginning July 1, 2001, public and private refuse collection operators with 50 or more refuse collection vehicles that are refuse collection vehicles (i.e., vehicles operated in residential and commercial areas and generally along fixed routes) or 15 or more transfer or rolloff vehicles (i.e., vehicles used to transfer refuse in and out of transfer stations or vehicles that deliver open boxes or waste containers) must purchase alternative fuel refuse collection vehicles when adding or replacing vehicles in their fleet. For operators with 15 and up to 49 refuse collection vehicles that are refuse collection vehicles, the rule implementation would begin July 1, 2002 with new purchases being alternative fuel vehicles. Dual-fuel transfer and rolloff vehicle purchases would be included under PR 1193. However, for refuse collection vehicles, dual-fuel refuse collection vehicles could be purchased only until July 1, 2002. A time restriction is placed on purchases of the dual-fuel refuse collection vehicles to assess if the in-use fuel usage is primarily natural gas. The dual-fuel engines have been certified by CARB as a low emission engine meeting CARB’s current optional nitrogen oxide exhaust emission standards. Under most in-use applications of dual-fuel technology, the dual-fuel engines runs about 80 to 85 percent of the time on natural gas. However, with the stop and go type activity associated with refuse collection vehicles, it is found that natural gas fuel usage could be lowered to about 50 percent. Therefore, these vehicles are allowed for refuse collection vehicles only until July 1, 2002. Such a provision allows time to further assess the uncertainty in these estimates and for additional development of dedicated natural gas engine for refuse collection purposes. Finally, dual-fuel use will provide an important increment of progress toward expanding natural gas fueling infrastructure.

PR 1193 exempts refuse collection vehicles used for testing/evaluation purposes and other heavy-duty vehicles that are not used to transport or collect refuse. Contracts to purchase refuse collection vehicles signed prior to the applicable implementation dates of the rule would not be affected by the rule. However, options to purchase vehicles signed after the adoption of the rule would have to meet Rule 1193 requirements. In addition, if a demonstration is made that an alternative fuel engine/chassis configuration is not commercially available, then a conventionally fuel vehicle may be purchased.

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 staff report for the seven separate rule proposals.

Draft rule language for PR 1193 (the third in the series of "PR 1190" fleet rules), was released on March 7, 2000. Additional public workshops were conducted on March 10, 2000 and May 10, 2000 to solicit further public comments. A draft report on PR 1193 was released in May 2000 that represented a revision to the December 1999 Preliminary Draft Staff Report on PR 1190.

In addition to the public workshops, a PR 1193 working group was formed to provide review and comments on PR 1193 rule development efforts. The working group focused on implementation issues relative to the refuse collection industry. Concerns were raised relative to smaller refuse collection operators versus larger operators and that more time would be needed for the smaller operators to implement PR 1193 in order to have the fueling infrastructure in place. In addition, the working group discussed dual fuel technologies that several operators are interested in purchasing. In response to the need for additional time for smaller operators, PR 1193 provides a longer implementation lead time for operators with fewer than 50 refuse collection vehicles.

Policy Issues

AQMD staff received a significant number of comments relative to the development of the public fleet rules. Since PR 1193 affects a smaller sector of fleet operations most of comments relative to PR 1193 were on the need for additional time to implement the rule, the use of dual fuel technologies, and the costs associated with alternative fuel vehicle purchases, maintenance, and operations. In addition, concerns have been raised relative to the economic impacts of PR 1193 in terms of "pass through" costs associated with the purchase of alternative fuel vehicles in the form of rate increases. Comments were provided that a "phased-in" purchase approach (i.e., less than 100 percent alternative fuel or dual-fuel vehicle purchase) would be more desirable and would provide more time for refuse collection operators to assess the alternative fuel technologies and the costs associated with implementation of the proposed rule.

AQMD staff has been in discussions with several of the smaller and larger refuse collection operators who do not operate alternative fuel vehicles and will continue to work with these operators to implement PR 1193 in a feasible and cost-effective manner. To facilitate this effort, several refuse collection operators requested that a technical committee be formed. Language is provided in the Governing Board adoption resolution directing staff to create a technical advisory implementation group to address this concern.

Emission Reductions

PR 1193 would affect approximately 6000 refuse collection vehicles in the current public and private fleets today. Based on an average purchase/replacement rate of 10 percent per year, it is estimated that by 2010 nitrogen oxide emissions would be reduced by 695 tons/year and particulate matter emissions by 68 tons/year. In addition, there would be a reduction in air toxic emissions. Finally, Rule 1193 will promote technology advancement that will likely result in emission reductions beyond those indicated above.

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 1193. 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 1193. 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 on short-term construction related air quality impacts. However, some adverse air quality environmental impacts were found relative to PR 1193, primarily due to construction-related emissions that would occur with the building of the alternative fuel fueling infrastructure needed for those refuse operators that do not have alternative fuel vehicles at this time. The only significant adverse impact; however, was due to refinery modifications to implement proposed amendments to Rule 431.2. 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 1193. Based on the draft assessment, it is envisioned that the majority if not all of the capital cost differential associated with the purchase of alternative fueled refuse collection vehicles can be cover by the Carl Moyer Program and the Mobile Source Emission Reductions Review Committee (MSRC). Comments were raised that there would be additional operational and maintenance costs associated with alternative fuel refuse collection vehicles compared to conventionally fueled vehicles. The economic assessment was conducted under three funding scenarios: no available funding, full funding, and most likely available funding. The draft assessment indicates that under the most likely funding scenario, the cost effectiveness of PR 1193 would be $25,000 per ton of criteria pollutant reduced and the cost-effectiveness ranges from $8,000 per ton under the full funding scenario to $40,000 per ton under the no available funding scenario. The cost-effectiveness includes capital and operational costs. 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 1193 would require public and private refuse collection operators to purchase alternative-fueled or dual-fueled vehicles at the time the operators are adding or replacing refuse collection vehicles in their fleets. It is envisioned that operators will specify in their procurement process the purchase of alternative fueled or dual-fuel vehicles. 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 alternative fueled or dual-fuel vehicles into the market. However, staff is proposing the creation of a Fleet Rule Implementation Officer position.

Recommendation

Staff recommends that proposed Rule 1193 be adopted. The proposed rule will provide criteria pollutant air quality and toxic air pollutant benefits.

Attachments

A. Summary of PR 1193 Proposal
B. Rule Development Process
C. Resolution
D. Proposed Rule 1193 Language
E. Staff Report
F. Socioeconomic Assessment
G. Final Environmental Assessment

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