BOARD MEETING DATE: August 6, 2004
AGENDA NO. 27

Mobile Source Committee

SYNOPSIS:

The Mobile Source Committee met Friday, July 23, 2004.
Following is a summary of that meeting.

RECOMMENDED ACTION:

Receive and file.

Jane Carney, Chair
Mobile Source Committee

Attendance

The meeting started at 9:05 a.m. Present: Committee Chair Jane Carney, Committee Vice Chair Roy Wilson (via videoconference), and Committee Members Jim Silva and Ron Loveridge. Absent: Committee Members Jan Perry and William Craycraft.

INFORMATION ITEMS:
 

1)	Status Report on Rule 1194 – Commercial Airport Ground Access Staff provided an in-depth presentation on the status of Rule 1194 with special focus on comments made by taxicab industry representatives at the June 2004 Board Meeting. Specific issues raised by the taxicab industry focused primarily on the feasibility of using natural gas vehicles for taxicab services (e.g., vehicle range, trunk space, mechanic service, and refueling infrastructure). While the AQMD is currently not enforcing Rule 1194 on private fleet operators, staff recommended continued funding of alternative fueled vehicles for taxicab services since the natural gas powered versions are cleaner than the gasoline counterpart. Several members from the taxicab industry, environmental organizations, and natural gas industry provided comments regarding the feasibility of operating natural gas vehicles. Chairperson Carney stated that she had concerns and asked if taxicab owners/operators still want to purchase alternative fuel taxicabs if funding is still available. Staff confirmed that taxicab operators are still purchasing natural gas powered taxicabs, primarily operators in Orange County. Chairperson Carney also asked if CARB goes forward with the U.S. EPA waiver request, what limitations would be made on any proposed amendments to the rule. Staff responded that there has been a precedent with prior CARB waiver requests where CARB had requested that a previous waiver request be modified due to more recent amendments to the CARB rule. Mr. William Rouse, representing Yellow Cab and United Checker Cab spoke about the misconception that staff has on how the taxicab industry works. Mr. Rouse spoke about how the associations have more cars than they have drivers. Cab drivers’ preference of gasoline vehicles over natural gas has resulted in shareholders losing value on their stock shares. He recommended that Rule 1194 be suspended until the gasoline ULEV Crown Victoria becomes available in the used vehicle market. He indicated that the taxicab industry has given the rule an honest attempt and the rule is not working. Board Member Silva asked several questions regarding the natural gas taxicabs and commented that he would like the taxicab associations to learn more about their operations and how their shares work. Mr. Rouse offered to meet with any of the Board Members to further discuss the matter. Mr. Nettabai Ahmed, President of Independent Taxi Company, spoke on behalf of the individual taxicab owners of Independent Taxi. He commented that even though the AQMD is offering to buy down a new natural gas Crown Victoria down to $10,000, there are not many takers and he says there is a reason for this. He indicated that the lack of alternative fuel refueling stations is a major reason and the impact of downtime when the alternative fuel vehicle needs to be repaired is another reason. He stated that the owners are required to keep the vehicles at least three years according the AQMD contract, and loss of income due to repairs and downtime is significant. Chairperson Carney questioned whether these taxicabs picked up passengers at the terminals or are they shuttled to a location away from the terminal. Staff explained that the taxicabs wait in a holding area outside the terminal until they are summoned up for passenger pickup. Chairperson Carney then acknowledged that these taxicabs still must go to the terminal to pick up passengers, and the passengers awaiting pickup at the terminal are subjected to the fumes accumulated at the terminal. Staff confirmed this with the Chair. The Chair suggested the possibility of LAX giving special privileges to alternative fueled taxicabs at LAX. Staff acknowledged that an effort has been made to work with LAWA on this matter; however, due to a recent change in staffing, this has been on hold. Mr. Chad Lindholm spoke on behalf of Clean Energy and indicated that he has heard from taxicab owners/operators and from the Los Angeles Department of Transportation that the primary hardship for them has been the impact of 9/11 and not Rule 1194. Mr. Lindholm stated that the taxicab industry is benefiting from affordable financing on the natural gas Crown Victorias. Mr. Lindholm also indicated that Clean Energy is in the process of constructing five new stations in the South Coast Air Basin to assist the taxicab industry. Mr. Clarke Cooper of Wondries Automotive stated there is new technology being developed by Fuelmaker and Honda on a home refueling unit that will make it possible for owners to refuel natural gas vehicles at home. He also believed that there will be a third party manufacturer who would step in to convert gasoline Crown Victorias to natural gas Crown Victorias by the end of 2004. Mr. Todd Campbell, Coalition for Clean Air and Councilmember from Burbank, indicated his support for Rule 1194; and he discussed the necessity for buses and taxicabs to use alternative fuels to improve the air quality, especially at airports and marine ports. There was some discussion among Board Members about making some adjustments to the rule before seeking a U.S. EPA waiver and continuing funding to buy-down incentives, even though it is a voluntary program. Board Member Loveridge recommended addressing the funding issue before proceeding further. Chairperson Carney made a motion to continue funding, Board Member Silva seconded the motion, and the Committee Members present unanimously approved a motion to continue offering funding for alternative fueled vehicles for the taxicab industry. Chairperson Carney raised the question as to whether or not Rule 1194 needed to be amended prior to submittal to the California Air Resources Board prior to seeking a waiver under the provisions of the Federal Clean Air Act. Staff stated that there is no published notice at this time and there is no exact date as to when CARB may submit the rules to U.S. EPA under the waiver provisions. Staff acknowledged that a target date for this action by CARB may be by September. Chairperson Carney then made a motion to have staff evaluate the possibility of: (1) delaying the effective date of the rule (since it is now suspended by the Supreme Court) until gasoline ULEV Crown Victoria becomes available on the used-car market; and (2) providing financial incentives for the purchase of new ULEV vehicles during this interim period. Board Member Silva seconded the motion and requested that staff come back at next month’s committee meeting with their findings.
2)	Status Report on CARB Review of State Air Quality Standards Continued to next meeting.
3)	Annual Report on AB 2766 Continued to next meeting.
4)	Rule 2202 Activity Report Written report submitted. No comments.
5)	Monthly Report on Environmental Justice Initiatives – CEQA Document Commenting Update Written report submitted. No comments.
6)	Other Business None.
7)	Public Comment None.

The meeting adjourned at 10:30 a.m.

Attachment

Attendance Roster

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
MOBILE SOURCE COMMITTEE
JULY 23, 2004

ATTENDANCE ROSTER

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