BOARD MEETING DATE: September 9, 2005
AGENDA NO. 27

Mobile Source Committee

SYNOPSIS:

The Mobile Source Committee met Friday, July 22, 2005.
Following is a summary of that meeting.

RECOMMENDED ACTION:

Receive and file.

Jane Carney, Chair
Mobile Source Committee

Attendance

The meeting started at 9:04 a.m. Present: Committee Chair Jane Carney, Vice Chair Roy Wilson (via videoconference), Jan Perry (via videoconference), and Ron Loveridge.

ACTION ITEM:
 

1)

Execute Contracts for AQIP Proposals Received During Second Semi-annual Period of CY 2004 Staff gave a presentation on the Air Quality Investment Program (AQIP) under Rule 2202. Report elements included: emission reduction targets, project selection process, summary of available funding, proposals received and funding recommendations. The projects were graded in five separate categories and ranked by score. Staff recommended six of the 15 proposals for funding. The following six proposals were recommended:

	a)	Hood Plumbing to purchase 30 CNG pickup trucks in an amount not to exceed $135,000.
	b)	Pick Your Part Auto Wrecking to scrap old vehicles under Rule 1610 in an amount not to exceed $1,000,000.
	c)	City of Burbank. to purchase 7 CNG transit buses in an amount not to exceed $252,000.
	d)	Altfillisch Contractors - Repower of four diesel-powered scrapers in an amount not to exceed $468,449.
	e)	Pacific Tugboat Services to repower two tugboats in an amount not to exceed $112,616.
	f)	Pacific Stihl to exchange 600 commercial backpack blowers in an amount not to exceed $90,000.

In addition, to continue implementation of Rule 1194 – Commercial Airport Ground Access Vehicles, an amount of $1,190,000 was allocated to provide incentive funding to taxicab operators. Ron Loveridge moved to recommend approval of this action item to the Board and Committee Vice Chair Wilson seconded. The motion was passed unanimously.

INFORMATION ITEMS:
 

2)	Proposed Rule 3503 – Emissions Inventory and Health Risk Assessment for Railyards AQMD staff provided an overview of PR 3503. PR 3503 is an informational rule that would require railroads to submit an emissions inventory and Health Risk Assessment for stationary and mobile sources used at railyards in the district. In addition, the proposed rule requires that if the approved Health Risk Assessment is greater than 10 in a million, the railroads would be subject to public notification requirements. The AQMD staff also provided a comparison between Proposed Rule 3503 and the 2005 CARB/Railroad Statewide Agreement (MOU). The public hearing for Proposed Rule 3503 is scheduled for October 7, 2005. Mayor Loveridge asked AQMD staff to provide a recommendation on the position the Board should take regarding the 2005 Railroad MOU, as well as providing the key recommendations AQMD should make to CARB to improve the MOU. Mayor Loveridge commented that the primary point is probably the "poison pill" provision, and suggested recommending that provision be removed from the MOU. The Mobile Source Committee requested this be agendized for the September Board.
3)	Rule 2202 Annual Report Staff presented a Calendar Year 2004 Annual Program Update on Rule 2202 – On-Road Motor Vehicle Mitigation Options. Rule 2202 requires employers with 250 or more employees on a full or part-time basis to implement an emissions reduction program to reduce mobile source emissions generated by employee commutes during peak hours. Employers may select one of three program options to comply with Rule 2202: an Employee Commute Reduction Program (ECRP), Emissions Reduction Strategies (ERS), or the Air Quality Investment Program (AQIP). The presentation was divided into four sections. The first section provided background information on rule implementation, including rule requirements, applicability, and compliance options. The second section described worksite operations that included data on employer participation in the available compliance options and the corresponding emission reductions. Employer participation in the compliance options was as follows: 57.3% ECRP, 28.3% ERS, and 14.4% AQIP. Emissions reduced in tons per day were: 3.09 VOC, 3.38 NOx, and 32.57 CO. The third section contained outreach information describing training for employee transportation coordinators (ETCs), Internet Web site content, AQIP assistance programs, and updated rule information for consultants, Transportation Management Associations (TMAs), rideshare events, and regulated employers. The last section contained information on program compliance assurance that includes an audit process triggered by complaints and/or staff requests. Staff will continue to provide outreach and technical assistance to the regulated community and stakeholders. Rule 2202 continues to make steady progress towards reducing mobile source emissions.
4)	Annual Report on AB2766 Funds from Motor Vehicle Registration Fees for FY 2003-04 Staff presented an annual status report on the AB 2766 Subvention Fund. The report’s purpose was to present the outcome of FY 2003-04 AB 2766 Subvention Fund usage and program results to the AQMD Governing Board, CARB, local governments and other entities. AB 2766 was signed into law September 1990; it authorizes a $4 motor vehicle registration fee surcharge of which 40% is subvened to local governments on a quarterly basis to implement projects that reduce mobile source emissions. Staff reported on the Subvention Fund’s financial summary relative to the beginning balance of $27.7 million; funds received totaled $18.6 million; project spending totaled $18.4 million; earmarked funds totaled $19.5 million; and funds remaining after earmarking totaled $8.4 million. Expenditures in the 11 project categories indicated that Transportation Demand Management, Alternative Fuels, Traffic Management and Public Transportation had the highest spending allocations, with Public Education and Market Based Programs having the least. Staff also reported on the number of projects funded and quantified over the last six fiscal years. During FY 2003-04, 380 projects were funded, of which 184 had reported emission reductions that resulted in approximately 4,366 tons of emissions (VOC, NOx, PM10 and CO/7) reduced. Overall average cost-effectiveness was $0.90 per pound of emissions reduced. Excluding one outlying Traffic Management project which had a significant effect on the overall cost-effectiveness, the average cost-effectiveness would be $4.24 per pound, which is relatively consistent with CARB’s reported statewide average cost-effectiveness for AB 2766 Subvention Fund projects of approximately $4 per pound. Staff provided outreach to local government staff in the form of executive meetings with city managers, telephone calls and training sessions. The overall summary of local government reports indicated an increase in project quantification and overall cost-effectiveness. Emission reductions and earmarked funds were the areas that indicated a bit of a decline compared to last fiscal year. Future efforts by the staff will focus on continuing to provide technical assistance to local governments and continuing to interface with CARB. Staff will continue to coordinate with MSRC staff on outreach to local governments when funding opportunities develop, so that local jurisdictions can be encouraged to apply for applicable discretionary AB 2766 project funds. Staff will coordinate with AQMD Finance staff to monitor outcome of bi-annual audit results. The full staff report will be presented to the Board at its September 9, 2005 meeting and upon approval will be forwarded to CARB. During the Committee members’ discussion on program spending by cities and counties, Mayor Loveridge suggested that staff identify some best practices by participating local governments. Staff indicated that examples of successful projects implemented by the cities and counties could be highlighted on AQMD’s website. Mayor Loveridge also repeated his desire that local government budget approval processes specifically flag AB 2766 proposed spending to the attention of respective City Council/Board of Supervisors. Staff commented that a letter was sent last year from Barry Wallerstein to Catherine Witherspoon, CARB’s Executive Officer, asking CARB to incorporate additional language in its AB 2766 Criteria and Guidelines that would address this concern. An informal response was received from CARB staff, stating that their existing guidelines adequately address AQMD’s concerns.
5)	Report on AQMD’s Hydrogen Program Since mobile sources are a major contributor to air pollution problems, development and refinement of low- and zero-emission control technologies are needed to ultimately achieve the national ambient air quality standards, specifically in the mobile sector. The AQMD believes the expedited implementation of ZEVs and AT-PZEVs (Advanced Technology Partial Zero Emission Vehicles), including fuel cell and hydrogen internal combustion engine (ICE) technology, is necessary to achieve ambient air quality standards in the basin. However, the early introduction of fuel cell and other hydrogen powered vehicles requires the development of a hydrogen fueling infrastructure. To accommodate this, the AQMD, using the Clean Fuels Fund, has focused on: Establishing a hydrogen fueling station network, strategically located near freeways; Incorporating a variety of designs and concepts for hydrogen production and storage methodologies; Supporting fuel cell and other hydrogen vehicle fleet demonstrations. This network will provide the basis for accelerated implementation of fuel cell and hydrogen vehicles. Additionally, the AQMD is co-funding the conversion of 30 Toyota Prius vehicles to use hydrogen as ICE fuel, to be demonstrated at five local cities. In the near future, AQMD also plans to seek approval to cost-share the demonstration of Ford’s Hydrogen-ICE shuttle van in local fleets, as well as expand the scope of hydrogen and CNG mixture applications that have shown significant emission reductions. The AQMD is coordinating its effort with national and state fuel cell and hydrogen programs by being an active participant in numerous organizations, including the California Fuel Cell Partnership and the California Hydrogen Highway Network. Mayor Loveridge discussed the near-term benefits of plug-in hybrid-electric vehicles, as compared to the longer-term potential benefits of hydrogen fuel. AQMD staff summarized the efforts underway on plug-in vehicle projects, including Toyota Prius and Sprinter Van projects already approved by the board.
6)	Rule 2202 Activity Report Written report submitted. No comments.
7)	Monthly Report on Environmental Justice Initiatives – CEQA Document Commenting Update Written report submitted. No comments.
8)	Other Business None.
9)	Public Comment None.

The meeting adjourned at 10:40 a.m.

Attachment

Attendance Roster
 

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
MOBILE SOURCE COMMITTEE
JULY 22, 2005
ATTENDANCE ROSTER

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