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Staff’s presentation to the Committee for their proposal included: summary of available funding; proposals received – 13 proposals in total; emission reductions from the proposed projects; cost effectiveness of each proposal; and summary of emission reduction credits surplus.

Staff recommends that 5 contracts be awarded as follows:

To: City of Monterey Park, in the amount of $113,320, for CNG Corporate Metrolink Shuttle;
To: Nationwide Environmental, in the amount of $140,000, for replacing diesel street sweepers with propane-powered street sweepers;
To: Seaboard Marine, in the amount of $85,000, for re-powering 3 gasoline-powered boats;
To: Seaboard Marine, in the amount of $158,000, for re-powering 7 gasoline-powered boats; and
To: Sukut Equipment, in the amount of $610,732, for repowering diesel construction equipment.

The Committee recommended approval of this item to the Governing Board.

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In summary, results of the study indicate the following. Current (2002) warehouse/distribution center operations increase MATES-II Mira Loma baseline cancer risk by an average of 18 in one million; maximum increase in one grid area is up to 49 in one million. In the year 2010, average cancer risk increase without the build-out is 11 in one million due to fleet turnover; maximum increase in one grid area is up to 30 in one million. With the full build-out scenario, Mira Loma average cancer risk is expected to increase by 15 in one million; maximum increase in one grid area is up to 34. The study also shows that cancer risk is found lower in residential areas due to prevailing wind direction. However, staff caveated the current analysis as preliminary and highlighted technical limitations in the study, such as the grid size and modeling technique used. Staff further suggested that receptor oriented modeling may be warranted to detect more localized exposure levels.
 

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The statewide emission reductions by 2010 are estimated as: VOC – 250 tons/day; NOx – 250 tons/day; PM10 – 50 tons/day; and some toxic reductions. CARB is obligated to achieve 100 tons/day of VOC reduction in the South Coast Air Basin by 2010. Technical evaluation of proposed measures will quantify any potential shortfalls. Annual costs associated with the CAP are estimated to be approximately $2.3 billion in 2010 which amounts to 0.2% of the state’s economic output. 55% of the costs are expected to be associated with stationary and areawide sources strategies, and 45% with mobile sources strategies. Cost estimates include compliance costs with state and federal requirements and local adoptions and implementations. Cost effectiveness is expected to be: $900-$25,000 per ton of VOC; and $5,000-$23,000 per ton of NOx. It is also estimated that CAP will result in 8,000 fewer jobs created, which amounts to 0.06% of the current employment force. Previous cost analyses indicate $3 benefits for every $1 invested.
 

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Staff provided a brief summary on the study and review results. Only the attainment pollutants NO2 and CO were evaluated at this time. The results of this study were based on the following assumptions: year 2000 ambient concentrations were used to derive attainment LSTs; 1-acre project size was assumed; and sensitive receptors at distances of 50- and 100-meters were evaluated. A total of 110 NDs were reviewed. Of this total, only 42 NDs from the 4 counties of Los Angeles, Orange, Riverside, and San Bernardino had calculated emissions and were evaluated further. Out of the 42 NDs, 8 were found to be significant under the existing Regional Significance Thresholds (RSTs) and excluded from further analysis. Out of the remaining 34 NDs, only 4 projects in L.A. County exceed LSTs at both 50 meters and 100 meters, and only during construction. Staff identified additional mitigation measures and costs and concluded that using LSTs may result in the preparation of approximately 12 percent more EIRs. Costs that will be incurred for the preparation of the additional EIRs, per project, are estimated to be: 1) Consultant’s preparation cost - between $15,000 (minimum) and $24,000 (maximum); and 2) the lead agencies’ preparation costs - between $3,933 (minimum) and $6,547 (maximum). In conclusion, the study shows that, typically, only the construction portion of the land use projects would be affected by using the LSTs. The operation portion of most land use projects would not use the LSTs because they typically do not involve a localized source of emissions such as heavy-duty diesel trucks. The LST approach also has the potential to increase resources costs. Staff concluded by stating that the number of additional EIRs required will be influenced by the following factors: project-specific information; actual number of emissions sources at the site; revised methodologies in the CEQA Handbook; future improvements in air quality; and modeling assumptions. Staff also recommended that once the LSTs are finalized, similar analysis be performed again to refine the findings.
 

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Committee Member Carney inquired as to the status and schedule of the District's study of transit bus emissions, and asked staff to ensure the timely completion of the analyses. Staff responded that the schedule is to have a draft report of the mutagenicity tests, being conducted by U.C. Davis, by the beginning of July, and to have a draft of the analyses of particulate organics, which include PAH and nitro-PAH compounds, next month.
 

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The Committee members present discussed whether the sunset date should be removed or extended. Since the proposed amendment will be considered by the Board in June, staff suggested that alternative language to extend the sunset date be developed and provide that to the Board for its consideration at the June public meeting in addition to the original recommendation.
 

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Two potential scenarios were presented. Scenario #1calls for federal and state stakeholders (EPA, FHWA, CARB) to resolve issues for the 2002 Regional Transportation Improvement Program (RTIP) cycle, which would allow the use of the latest approved SIP assumptions that were developed using the EMFAC 7G model. Staff reported that there are extensive discussions and ongoing coordination between the stakeholders and that a commitment has been made to resolve the problem in one week.

Scenario #2 identifies impacts that could possibly occur if there is no federal/state remedy for this RTIP cycle. The potential impacts would be that since a revised SIP budget through a SIP revision would be difficult, if not impossible, by the October 2002 expiration date, there is the potential of not having a conformity finding, thus forcing the region into a conformity lapse. This lapse could result in the loss of approximately $1.2 billion of federal funding according to SCAG estimates.

In summary, staff identified specific AQMD actions. The first action is to develop the 2002 AQMP in a timely manner in order to establish new budgets. Those new budgets would be developed for the SCAB Ozone and PM10, as well as the Coachella Valley PM10. Staff also indicated that the AQMD is seeking long term solutions to these conformity issues such as better interagency coordination on establishing planning cycles and establishing a more streamlined approach to budget updates.
 

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