BOARD MEETING DATE: July 11, 2008
AGENDA NO. 34

RECOMMENDED ACTIONS:

Receive and file the attached report.
 

Ronald O. Loveridge, Chair
Mobile Source Committee

Attendance

Chair Ronald Loveridge called the meeting to order at 9:00 a.m. Present were Committee Members Gary Ovitt and Jane Carney. Committee Member Jan Perry joined the meeting at 9:18, via videoconference. Absent were Committee Member Bill Campbell and Vice Chair S. Roy Wilson. The following items were presented:
 

INFORMATIONAL ITEMS:

1) Status Update of Contracts for Preparation of CEQA Document for Proposed Expansion and Modernization of Union Pacific (UP) Intermodal Container Transfer Facility (ICTF)

Susan Nakamura, Planning & Rules Manager, provided an overview of contractor assistance needed for preparing the CEQA documents for the Proposed Expansion and Modernization of the Union Pacific (UP) Intermodal Container Transfer Facility (ICTF).  The UP ICTF facility is an intermodal railyard.  The proposed expansion would increase the number of containers handled at the facility from 725,000 to 1.5 million annually.  In addition, UP will also modernize its existing operations by replacing diesel cranes with electric cranes.  The SCAQMD has agreed through a Memorandum of Agreement with the ICTF Joint Powers Authority (JPA) to prepare the CEQA documents for the proposed expansion and modernization of the UP ICTF facility.  The SCAQMD staff will oversee the development of the CEQA documents and will subcontract preparation of portions of the CEQA documents.  SCAQMD staff is proposing to execute three contracts for $150,000 each to Environmental Audit, Castle Environmental Consulting, and Iteris and is requesting that the Executive Officer be given the authority to increase the contracts up to $100,000 each, if needed to ensure analyses of environmental impacts are adequately addressed.  Additional contractor assistance is anticipated for evaluation of project alternatives and feasibility of mitigation measures.  The SCAQMD staff is concerned that a competitive process would delay completion of these documents and there is an urgency to complete these documents to ensure that cumulative impacts with this proposed project and a neighboring proposed new railyard can be appropriately analyzed and disclosed to the public.  The AQMD will be reimbursed by the JPA for all expenses related to preparation of the CEQA documents, including staff time and will forward $150,000 to fund early action work.  The JPA has estimated that development of the CEQA documents will cost up to $2.5 million.  The JPA is expected to sign the Memorandum of Agreement on Tuesday June 24, 2008.  Contingent on signing the Memorandum of Agreement, the AQMD staff will be recommending that the Governing Board at it July meeting authorize execution of the three contracts and recognize funds received from JPA.  Board member Jane Carney asked that at the Board meeting staff be ready to clarify the extent of conflict of interest, if any, with the railroads.
 

2) Update on Multiple Air Toxics Exposure Study (MATES) III

Staff presented an update on the MATES III report.  In response to comments received on the draft report, staff did additional model calculations for the MATES III time period with changes in model parameters that improved the model performance.  Additionally, the CAMx air quality model, which was used in the MATES III study, was applied to the MATES II time frame for a better “apples to apples” comparison of MATES III and MATES II.  The comparison showed that there was a basin-wide reduction in population weighted risk of about 8% from MATES II to MATES III, while there was about a 17% increase in population weighted risk in the grid cells nearest the ports.  Other items included an update on the hexavalent chromium follow up at Rubidoux, and discussion of comments received relating to the monitoring data, data reporting conventions, application of the Chemical Mass Balance Model, and presentation of modeled risk maps with greater resolution of the grid cell risk levels.

Staff also presented their intent to release the final MATES III report at the July Board meeting.  There was a public request that the Technical Advisory Group be given an opportunity to review the revised report before it is final. Committee members agreed with the request and so directed the staff.

3) Update on CARB Marine Vessel Fuel Regulation

Staff presented a brief report on CARB’s proposed marine vessels fuel sulfur regulation. Ocean-going vessels are a significant and growing source of emissions (NOx, SOx, and PM) in the South Coast Air Basin, due to lack of adequate regulations and tripling of cargo throughput over the next 15 to 20 years. In December 2005, CARB adopted a ship auxiliary engine fuel rule which required the use of lower sulfur fuels in auxiliary engines within 24 nm of California waters (i.e., 0.5% in 2007 and 0.1% in 2010). In December 2006, Pacific Merchant Shipping Association filed a lawsuit challenging CARB’s authority to implement this regulation in the absence of an U.S. EPA waiver. Courts have now confirmed that U.S. EPA’s authorization is required for implementation of CARB’s auxiliary engine fuel regulation because of the specific form of the rule. In response to the recent courts findings, CARB is now proposing a new fuel regulation targeting both the main and auxiliary engines and auxiliary boilers on-board the U.S. and foreign flag vessels within the 24 nm of California waters. The Phase 1 of the proposed regulation would establish a 0.5% sulfur limit for marine distillate fuels which would go into effect upon effective date of the regulation (i.e., 30 days following approval of the Office of Administrative Law) for auxiliary engines and would become effective for main engines and auxiliary boilers beginning July 1, 2009. The Phase 2 would require the use of distillate fuels with a maximum 0.1% sulfur content in main and auxiliary engines and auxiliary boilers beginning January 1, 2012.

The proposed regulation meets the 2007 SIP reduction targets in 2014 and 2023 but not for the earlier years. The corresponding health benefits are estimated at $15.4 billion over the period of 2009 to 2015. Staff’s initial concerns relate to the inconsistency of the proposed regulation with the previous auxiliary engine fuel rule, the 2007 SIP (i.e., requiring 0.1% sulfur fuel in 2010), the Ports Clean Air Action Plan (requiring the use of 0.2% or lower sulfur fuel in main and auxiliary engines as part of lease conditions), and the proposed federal legislation (i.e., 0.1% sulfur fuel no later than December 2010). The forgone emissions and health benefits associated with the proposed Phase 2 of 0.1% sulfur in 2012 compared to 2010 over the 2009 to 2015 period are: 15 tons of SOx and 0.9 ton of PM reductions as well as 112 premature deaths, 3,220 asthma attacks, and 255 of acute bronchitis.

Staff is currently in the process of preparing written comments and also evaluating the issue of the availability of 0.1% fuel and considering options to support an earlier implementation. CARB Board consideration is scheduled for July 24, 2008.
 

4) Status Report on CARB’s Proposed On-Road Vehicle Regulations

Item deferred to July Mobile Source Committee meeting.
 

5) Report on Proposed Amended Rule 1186 – PM10 Emissions from Paved and Unpaved Roads, and Livestock Operations

Jill Whynot, Director of Strategic Initiatives, discussed proposed changes to Rule 1186.  The changes will enable after-market parts suppliers to sell replacement parts provided that will not affect sweeper performance.  The amendments will also help staff better assess continued performance of existing street sweepers, if changes are made to their configurations or parts suppliers.  This will be done through information submittals that staff will evaluate.  The public workshop had few attendees and only one comment letter was received.  Staff is working with the sweeper manufacturer that sent in a letter and will work with them on whether the information they collect would be sufficient.  The rule will be heard at the July Governing Board meeting.
 

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 10:28 a.m.

Attachment

Attendance Roster