BOARD MEETING DATE: January 11, 2002
AGENDA NO. 16

Adopt Resolution to Ensure No Double-Counting of Emission Reductions Under Current and Future Mobile Source Credit Generation Rules.

SYNOPSIS: 

In 2001, the Board adopted five mobile source pilot credit generation rules. Each of these rules has been submitted to EPA for inclusion in the SIP. EPA has requested a Board resolution regarding commitments to avoid potential double-counting of emission reductions from the mobile source pilot credit generation rules and transportation conformity emissions budgets.

RECOMMENDED ACTION:

Adopt the attached resolution.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 2001, the AQMD’s Board adopted five mobile source pilot credit generation rules: Rule 1612.1 - Mobile Source Credit Generation Pilot Program, Rule 1631 - Pilot Credit Generation Program for Marine Vessels, Rule 1632 - Pilot Credit Generation Program for Hotelling Operations, Rule 1633 - Pilot Credit Generation for Truck/Trailer Refrigeration Units, and Rule 1634 - Pilot Credit Generation Program for Truck Stops. These pilot credit generation rules have been submitted to EPA for inclusion in the State Implementation Plan (SIP).

Recently, the AQMD staff received comments from EPA regarding the need to ensure no double-counting of emission reductions from current and future mobile source credit generation programs relative to the transportation conformity portions of present and future SIPs. EPA has indicated that this is an approvability issue and has requested a Resolution from the Governing Board that commits staff to ensure that no double-counting of emission reductions from mobile source credits will occur.

Proposal

Based on the AQMD’s analysis of the pilot credit generation rules and transportation control measures, no double-counting of emission reductions from these programs is anticipated. To address EPA’s issue and ensure that future mobile source credit generation rules will not result in double counting of emission reductions, a Resolution has been developed that will require staff to do the following:

• Avoid double-counting of emission reduction credits from mobile source credit programs with respect to the SIP, specifically transportation conformity emissions budgets;
  
  
• Work with SCAG to ensure transportation conformity determinations for plans and projects do not take credit for motor vehicle emission reductions for any budget years if those reductions are available to be used for complying with any other SIP emission reduction program; and
  
  
• When preparing the SIP or transportation conformity budgets, account for all remaining emissions from RTCs resulting and anticipated from Mobile Source Emission Reduction Credits (MSERCs).

Recommendation

Staff recommends adoption of the attached Resolution.

Attachment

Resolution

                    A Resolution of the Governing Board of the South Coast Air Quality Management District (Governing Board) for mobile source credit generation rules.

                    WHEREAS, the Governing Board has adopted the following five mobile source pilot credit generation rules: Rule 1612.1 - Mobile Source Credit Generation Pilot Program, Rule 1631 - Pilot Credit Generation Program for Marine Vessels, Rule 1632 - Pilot Credit Generation Program for Hotelling Operations, Rule 1633 - Pilot Credit Generation for Truck/Trailer Refrigeration Units, and Rule 1634 - Pilot Credit Generation Program for Truck Stops; and

                    WHEREAS, the mobile source pilot credit generation rules are developed to meet state and federal approvability requirements and to provide opportunities to generate Mobile Source Emission Reduction Credits (MSERCs) that can be converted to RECLAIM Trading Credits (RTCs) for use directly in the RECLAIM program or for the RECLAIM Reserve; and

                    WHEREAS, current and future mobile source credit rules are important and a need exists in the RECLAIM program for RTCs resulting from MSERCs to mitigate emissions from power plants and provide additional RTCs for the RECLAIM program; and

                    WHEREAS, the Environmental Protection Agency (EPA) requested a resolution from the Governing Board regarding avoiding potential double-counting of emission reductions; and

                    NOW, THEREFORE, BE IT RESOLVED, that the Governing Board directs staff to avoid double-counting of emission reduction credits generated under current and future mobile source credit generation rules with respect to present and future SIPs that include rate of progress and attainment demonstrations, transportation conformity budgets, and procedures for transportation conformity determinations; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff to work with the Southern California Association of Governments (SCAG) to ensure that transportation conformity determinations for plans and projects do not take credit for motor vehicle emission reductions for any of the budget years, if the reductions are used, or available to be used, to comply with the provisions of Regulation XIII, Regulation XX, or any other SIP emission reduction requirement for the South Coast Air Quality Management District for those budget years; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff when preparing new or amended rate of progress and attainment demonstration SIPs or transportation conformity budgets, to count all awarded RECLAIM Trading Credits (RTCs) resulting from Mobile Source Emission Reduction Credits (MSERCs) and anticipated RTCs from MSERCs as emissions remaining in the air, for purposes of both the SIP and transportation conformity budgets.

Dated:                                               ______________________________
                                                              Clerk of the District Board

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