BOARD MEETING DATE: May 5, 2006
AGENDA NO. 36

Amend Rule 1195 – Clean On-Road School Buses

SYNOPSIS:

Proposed amendments to Rule 1195 will extend the sunset date to allow the purchase of diesel-powered school buses based on the unavailability of alternative-fuel refueling stations within five miles of the school bus fleet and the unavailability of funds in the amount of $8,000 per school bus that would be used to fund the construction of an alternative-fuel refueling station.  The proposed amendments are in response to near-term school bus vehicle acquisitions that are located in service areas where alternative-fuel refueling stations do not yet exist.

COMMITTEE:

Mobile Source, April 28, 2006, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the Addendum to the June 2000 Program Environmental Assessment for Fleet Vehicle Rules completed in compliance with CEQA (California Public Resources Code Section 21000 et. seq.); and
2. Amending Rule 1195 – Clean On-Road School Buses.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Between June 2000 and April 2001, the Board adopted seven mobile source rules, commonly referred to as the “fleet rules.”  The purpose of the fleet rules is to reduce mobile source emissions by accelerating the implementation of currently available cleaner-burning or alternative-fuel vehicle technology.  Rule 1195 – Clean On-Road School Buses was adopted by the Board on April 20, 2001.  Rule 1195 affects school bus fleets with 15 or more school buses operating within the AQMD boundaries.  Beginning July 20, 2001, Rule 1195 required these school bus fleets to purchase alternative-fueled or Ultra-Low Emission Vehicle (ULEV) gasoline school buses when adding or replacing school buses to their existing fleets.

Rule 1195 incorporates exemptions that allow the purchase of diesel-powered school buses if certain requirements are satisfied.  In general, the affected school bus fleet operator must submit an Exemption Request with appropriate documentation for AQMD evaluation in order to determine if these requirements have been satisfied.  If an Exemption Request is approved, the affected fleet operator is allowed to purchase the requested number of diesel-powered vehicles within a specified time frame. 

For Rule 1195, an affected fleet operator may obtain an Exemption Request approval for the following reasons: (1) sufficient grant funding is not available to fully offset the differential purchase cost of a rule compliant school bus when compared to the cost of a diesel-powered school bus equipped with an approved control device; (2) sufficient grant funding of at least $8,000 per alternative-fuel school bus is not available to build an alternative-fuel refueling station and to upgrade existing maintenance facilities; (3) an alternative-fuel engine and chassis configuration is not commercially available in a specific bus size; (4) the oldest school bus is scrapped or otherwise removed permanently from operation and this bus is replaced with a pre-owned non-compliant school bus that is less than six years old at the date of purchase; (5) school bus fleet operators need additional school buses due to unforeseen circumstances; (6) the acquisition of non-compliant school buses resulting from mergers; (7) the acquisition of non-compliant school buses resulting from contract agreements signed prior to the date of rule adoption for the purchase of non-compliant school buses; (8) a public accessible refueling station for alternative-fuel school buses is not available within five miles of the fleet operator’s vehicle storage or maintenance yards; and (9) non-compliant school buses are needed to transport students on field trips outside of the AQMD’s boundaries may be purchased.

To date, three Exemption Requests for Rule 1195 have been submitted to the AQMD and approved based on the lack of alternative-fuel refueling stations located within five miles of the vehicle’s storage and maintenance yards.  The number of non-compliant school buses purchased due to this specific exemption totals four school buses.  

Proposal

The number and location of publicly accessible alternative-fuel refueling stations is a significant implementation element for all of the fleet rules and for Rule 1195.  As mentioned previously, the number of Exemption Requests submitted prior to January 1, 2003, requesting an exemption due to lack of alternative refueling stations located within five miles of the vehicle’s storage and maintenance yard totaled three (accounting for four school buses receiving an exemption).  The locations were Canyon Country, Lake Elsinore and Lake Arrowhead.  All of these locations are in less urbanized areas within the boundaries of the AQMD.

To address the lack of natural-gas refueling infrastructure in certain areas of the AQMD jurisdictional boundaries, staff is proposing a rule amendment that would reinstate a sunset date for this specific exemption item.  The sunset date for this rule provision would be amended with a new sunset date of July 1, 2008 in Rule 1195 paragraph (e)(8).  Staff believes that reinstating this sunset provision is appropriate given the potential number of alternative-fuel refueling stations that could be constructed within the AQMD boundaries during the next few years.

Public Process

A public workshop was held on March 7, 2006.  Representatives of public and private fleet operators attended the workshop.  Some meeting participants provided comments at the workshop and supported the proposed rule amendment to reinstate the sunset date to July 1, 2008.

Emission Reductions

At this time, staff estimates that PAR 1195 would not have a significant impact on the air quality benefits of the rule as estimated in the April 2001 staff report for Rule 1195.  This is because only a few Exemption Request approvals have been issued for lack of alternative-fuel refueling stations, and it is anticipated that this trend will not change due to the reinstatement of the provision.  Between July 2001 and January 2003 only three exemption requests were granted due to lack of alternative-fuel refueling station located within five miles of the vehicle’s storage and maintenance yard resulting in four school buses receiving an exemption. 

California Environmental Quality Act (CEQA)

Pursuant to the CEQA Guidelines §15164, the AQMD has prepared an Addendum to the June 2000 Final Program Environmental Assessment (PEA) for the Fleet Vehicle Rules and Related Rule Amendment, to address the proposed reinstatement of the sunset date for a compliance provision in Rule 1195.  The Addendum to the Final PEA concluded that the reinstatement of the provision would not create any new significant adverse impacts or make substantially worse any existing significant adverse impacts generated by the original project.  The proposed modification will not change the environmental analysis or conclusions in the previously certified Final PEA.  Pursuant to CEQA Guidelines §15164 (c), an addendum need not be circulated for public review.  The previously released CEQA document can be obtained from the AQMD’s Public Information Center by calling (909) 396-2309.

Socioeconomic Assessment

The proposed amendments would reinstate the sunset provision on the availability of Exemption Request approvals based on a lack of alternative-fuel refueling stations for Rule 1195.  Such relief would result in a reduction of cost burden, thus minimizing adverse socioeconomic impacts, if any, on the fleet operators.

Recommendation

Staff recommends that the proposed amendment to Rule 1195 be adopted.  The proposed rule amendment will provide appropriate regulatory relief to affected Rule 1195 fleets where alternative-fuel refueling stations are not sufficiently nearby to fleet storage and maintenance yards.

Attachments (EXE 215kb)
A.  Summary of PAR 1195 Proposal
B.  Rule Development Process
C.  Resolution
D.  Proposed Amendments to Rule 1195
E.  Final Staff Report on PAR 1195
F.  Addendum to the June 2000 Final Program Environmental Assessment for the Fleet
     Vehicle Rules and Related Rule Amendments