BOARD MEETING DATE: October 5, 2007
AGENDA NO. 31

REPORT:

Mobile Source Committee

SYNOPSIS:

The Mobile Source Committee met Friday, September 28, 2007. 
Following is a summary of that meeting.

RECOMMENDED ACTION:

Receive and file the attached report.

Ronald O. Loveridge, Chair
Mobile Source Committee

Attendance

The meeting started at 9:02 a.m. Present were Committee Member Jane Carney, and Committee Members Roy Wilson and Jan Perry (via videoconference). Committee Chair Ron Loveridge arrived at 9:08 a.m. The following items were presented:

ACTION ITEM:

3. Recommendation to Become Party to Southern California National Freight Gateway Corporation Agreement

Federal, state and local transportation, air quality and other agencies have developed the Southern California National Freight Gateway Cooperation Agreement. The purpose of the agreement is to promote cooperation, coordination and collaboration to advance sustainable and efficient freight transportation while all parties pursue their normal responsibilities under the law. Under the agreement, senior management representatives of the agencies would meet twice a year to discuss emerging problems, issues and priorities for each organization, and to report on the status of the initiatives. The agreement does not limit, increase or affect the authority of any agency under the law. The Governing Board’s viewpoints on goods movement should be considered at this important forum.

Committee Member Carney moved the item and it was seconded by Committee Chair Loveridge.

INFORMATION ITEMS:

1. Report on CARB Hearing on State Strategy and 2007 AQMP

Dr. Elaine Chang, Deputy Executive Officer of Planning, Rule Development and Area Sources, reported on CARB’s public hearing on the proposed State Strategy and the 2007 Air Quality Management Plan held on September 27, 2007 at the District’s headquarters. Following public testimony and Board discussion, CARB Board unanimously approved the 2007 Statewide SIP strategy which included the additional NOx reductions negotiated through a 3-agency (CARB, AQMD, SCAG) agreement. The Board also approved the State Implementation Plan (SIP) for the federal PM2.5 (with an attainment date of 2015 for South Coast) and 8-Hour ozone standards (with attainment dates of 2024 and 2019 for South Coast and Coachella Valley, respectively). The Board also directed staff to provide annual progress reports on the implementation of the SIP.

The agreement to close the attainment gap for PM2.5 would provide 76 tons per day of additional NOx (or equivalent) reductions. The agreement included additional reductions to be achieved by CARB, District, the federal government, and local cities and counties through 2014. With these additional reductions, the region will be able to demonstrate attainment of the PM2.5 standard by 2015. Under the agreement, CARB is committing to an additional 30 tons per day (t/d) of NOx, which would primarily be attributed to heavy-duty trucks, while the federal and local governments will be responsible for 10 t/d and 4 t/d of NOx reductions, respectively. District’s additional commitments include: the Surplus Off-Road Opt-in for NOx Program (12 t/d), SCR for Metrolink trains (3 t/d), and additional incentive funding for port-related and other sources (3 t/d). CARB has committed to back-stop the reductions from the Metrolink measure and the additional incentive funding programs in the event that these reductions are not achieved. In addition, the three agencies have committed to prepare a joint white paper on long-term strategies in an effort to address the remaining black box reductions needed for ozone attainment. Among key comments at the hearing were: support for the unprecedented cooperative effort among agencies (particularly in closing the PM2.5 attainment gap), support for the enhanced strategies, and concerns over the size of the black box and the enforceability of commitments.

Board members present commended staff for working closely with CARB and SCAG in developing the consensus agreement and closing the attainment gap for meeting the PM2.5 standard. Board members also discussed the need to have specific guidelines for local governments to achieve their reduction target (i.e., 4 tons per day of NOx by 2014) from AB2766 funds, as outlined in the agreement. Staff indicated that CARB will revise its guidelines for this program.

2. Report on the SOON Program

AQMD Staff presented an overview of CARB’s recently adopted regulation for In-use Off-road Diesel Equipment which includes the Surplus Off-road Opt-in for NOx (SOON) regulation. The SOON regulation is the first of-its-kind district opt-in program to achieve additional NOx reductions above those required by the base regulation by mandating that older, larger fleets apply for and use incentive monies to further reduce NOx emissions from their fleets.

CARB’s rule which was adopted in July 2007 applies to all diesel off-road equipment 25 horsepower (hp) and greater. Fleets must meet increasingly more stringent NOx and PM fleet average or meet BACT turnover and PM retrofit requirements targets beginning in 2010 for the larger fleets. Every year, fleets must either meet NOx and PM decreasing fleet average targets or if they do not meet the fleet targets, turnover 8% (10% after 2015) of their fleet horsepower to meet the NOx best available control technology (BACT) requirements and retrofit with verified PM controls on 20% of their fleet horsepower to meet the PM BACT requirements. In addition to the emission control requirements, fleets will also be required to report to CARB each year on the make-up of their fleet as well as label all equipment with unique CARB approved vehicle identification numbers.

The SOON requirements were developed jointly by CARB and District staff with industry input with the goal of providing an additional 12 TPD of NOx reductions in the South Coast. The incentive funding for achieving these reductions is estimated at $120 MM over 4 years (i.e., $30 MM per year for 4 years). 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 regulation. Under this regulation, fleets would be required to either meet the more stringent NOx fleet average targets or to apply for funding for taking the necessary actions (i.e., repower, retrofit, replace) to meet the SOON targets. Once funded, fleets are required to implement these actions.

In order to implement the SOON requirements, District staff will develop specific implementation and funding guidelines addressing a number of areas such as consistency among districts and CARB, projection selection (e.g., cost-effectiveness), and operating criteria. Industry concerns including funding criteria, potential financial impacts, multi-district operations, and multiple reporting requirements will also be addressed during the development of these guidelines. A working group made up of representatives from CARB, other districts, Industry, and public fleet is being formed to help develop these guidelines. A public consultation meeting is also tentatively scheduled for late October. The SOON regulation will be adopted through a formal public hearing which would also include a recommendation for setting aside $120 MM and for approving the implementation guidelines.

Board members present discussed the implementation of the SOON regulation which would achieve additional NOx reductions beyond the State regulation. Dr. Wallerstein highlighted that the opt-in provision of the state regulation establishes a precedent setting requirement which could potentially be considered for other source categories. Also, representatives from LA County Sanitation District and the construction industry expressed their general support of the SOON program and had questions regarding the implementation of the program. Staff indicated that these questions will be addressed during development of the implementation guidelines.

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 10:07 a.m.

Attachment

Attendance Roster

  SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
MOBILE SOURCE COMMITTEE
SEPTEMBER 28, 2007
ATTENDANCE ROSTER