BOARD MEETING DATE: November 2, 2007
AGENDA NO. 28

REPORT:

Mobile Source Committee

SYNOPSIS: 

The Mobile Source Committee met Friday, October 26, 2007.
Following is a summary of that meeting.

RECOMMENDED ACTION:

Receive and file the attached report.

S. Roy Wilson, Vice Chair
Mobile Source Committee

Attendance
The meeting started at 9:02 a.m. Present was Committee Member Jane Carney. Committee Members Roy Wilson, Jan Perry and Bill Campbell participated via videoconference. The following items were presented:

ACTION ITEMS:

1) Execute Contracts for Rule 2202 AQIP and Execute Second Year Contract Option to Conduct 2008 Lawn Mower Exchange Program
Shashi Singeetham gave a presentation on the staff recommendations for the Rule 2202 AQIP for the first semi-annual period of 2007. The presentation included the Emission Reduction Targets, Funding amount available; list of all the proposals received, and project recommendation for funding.  

Four projects, A.L. MacIntosh Company, Howard Contracting Company, Inc., Pick Your Part Auto Wrecking were recommended for funding. The committee recognized the $50,000 contribution from CARB towards the Lawn Mower Exchange Program. The committee also approved offering the second year option to Neuton Lawn Mower Company and funding to conduct the 2008 Lawn Mower Exchange Program.

Committee Member Campbell asked questions as to how different projects were selected and Shashi responded by explaining the selection criteria as to meeting the required reduction targets, cost-effectiveness calculation method and contractor selection process. Fred Minassian also added input on the selection process.

Committee Member Campbell moved to recommend approval on the first project and Committee Member Carney seconded the motion. Committee Vice Chair Wilson moved to recommend approval on the second project and Committee Member Carney seconded the motion. Committee Member Campbell moved to recommend approval on the third project and Committee Member Carney seconded the motion and on the fourth project Committee Member Campbell recommended approval and Committee Vice Chair Wilson seconded the motion.

2) Issue Program Announcement for the Surplus Off-Road Opt-In for NOx (SOON) Provision of the State In-Use Off-Road Vehicle Regulation

AQMD Staff presented the request for issuance of a program announcement for the Surplus Off-road Opt-in for NOx (SOON) provision of the CARB In-use Off-Road Diesel Vehicle Regulation, which was adopted in July 2007. CARB’s base regulation requires fleets to meet NOx and PM average targets or meet BACT turnover and PM retrofit requirements. The SOON provision of the State regulation allows for additional NOx reductions beyond the base regulation through incentive funding. The SOON regulation would apply to any District which opts into the state regulation through a formal public hearing and issues solicitation for applications for funding. Fleets with more than 40% Tier 0 and 1 equipment with a maximum power greater than 20,000 hp would be subject to the SOON requirements. Reductions for the SOON program are estimated at 12 tons per day in the South Coast Air Basin based on an estimated funding of $120 million ($30 million per year over four years). Affected fleets and vehicles under this program are estimated to be 100 to 150 fleets and approximately 1000 to 1500 vehicles. Fleets subject to the SOON program would be required to either meet the more stringent NOx fleet average targets or to apply for funding to implement the necessary actions (i.e., repower, retrofit, replace) to meet the SOON targets. Fleets receiving funding must then implement these actions. Potential funding sources include the Carl Moyer Program Fund AB 923 and SB 1107 accounts as well as any other sources that may become available. Projects are proposed to be distributed mainly based on the cost-effectiveness as well as other funding distribution criteria.

AQMD staff is expected to bring forward the SOON opt-in provision for Board’s consideration early next year prior to the close of program announcement. This program announcement for soliciting SOON projects is proposed to be issued early on in order to allow additional time for staff to conduct outreach to affected fleets and also allow ample time for fleets to submit the required application, compliance plan, and reporting. During program announcement period, staff will also work with stakeholders to develop administrative guidelines for the SOON program. The program announcement is scheduled to be released on November 2, 2007 following the Board approval. Staff will also host a workshop on January 16, 2008 to provide assistance to fleets applying for the SOON incentive funds. The deadline for submitting proposals is May 2, 2008, pending Board’s approval on the SOON opt-in provision. Contracts are expected to be awarded in July/September 2008 timeframe.

Staff is recommending approval of the issuance of Program Announcement #2008-01 for the Surplus Off-road Opt-in for NOx (SOON) provision of CARB’s In-use Off-Road Diesel Vehicle Regulation.

Committee Member Campbell questioned the position of industry and others on the SOON program. Staff responded that there is general support for this program because of the availability of incentive funding, but concerns were raised regarding the implementation guidelines. An implementation working group has been established to address the concerns prior to bringing the opt-in provision to the Board for consideration in early 2008.

Committee Vice Chair Wilson moved the item for approval and it was seconded by Committee Member Campbell.

INFORMATION ITEMS:

3) Report on Proposed New 8-Hour Ozone Standard
Staff presented a summary of U.S. EPA’s actions to date regarding the revision of the Ambient Air Quality Standard for ozone.  The U.S. EPA has proposed to lower the 8-hour ozone primary standard from 0.08 ppm to a level within the range of 0.070 to 0.075 ppm.  This contrasts with the recommended range of U.S. EPA’s Clean Air Science Advisory Committee (CASAC) of 0.060 to 0.070.   AQMD staff provided comments to U.S. EPA at a hearing held in Los Angeles on August 30, 2007, and provided comments to the Administrator recommending that a revised standard be set within the range recommended by CASAC to protect public health with a margin of safety.  U.S. EPA is also considering whether to revise the secondary standard - designed to protect against welfare effects - to a time and concentration weighted form, or to have secondary standard the same as the primary standard.  A final decision by U.S. EPA is scheduled for March 12, 2008.

4) Report on the 3-Agency White Paper on Future Strategies
Dr. Chang provided a report on the status of the 2007 SIP White Paper a deliverable commitment made by the three-agency staffs of CARB, SCAG, and AQMD as part of the 2007 SIP adoption, to prepare a discussion paper on long range strategies for the region. In light of the “black box” commitment in the 2007 SIP, the upcoming federal PM2.5 24-hour standard and the proposed new 8-hour ozone standard, significantly more reductions are needed. This White Paper is scheduled to be prepared in the next four months to be available around the same time as SCAG’s 2008 Regional Transportation Plan (RTP) release for public review. A draft report is anticipated in December and will be brought to the respective boards for public release in the January to February 2008 timeframe. The three-agency staffs recognized the need to integrate respective agencies' planning activities for the next several decades in the areas of land use, transportation systems, technology advancement, climate change mitigation, funding mechanisms, and legal authorities. In order to solicit ideas, the staffs assembled a focus group and held one meeting earlier this week. Participants at the meeting discussed several funding mechanisms (e.g., pricing signals, user fees), how the monies collected should be invested, and the need to include demand-side programs, public education, and building trust among stakeholders. Staffs will collaborate to prepare an annotated outline based on the input received from the focus group and begin formulating policy scenarios for more detailed discussion in the White Paper.

5) Rule 2202 Activity Report
Written report submitted. No comments.

6) Monthly Report on Environmental Justice Initiatives – CEQA Document Commenting Update
Written report submitted. No comments.

7) Other Business
None

8) Public Comment
None

The meeting adjourned at 10:03 a.m.

Attachment

Attendance Roster