BOARD MEETING DATE: November 7, 2008
AGENDA NO. 29

REPORt:

Mobile Source Committee

SYNOPSIS:

The Mobile Source Committee met Friday, October 17, 2008.
Following is a summary of that meeting.

RECOMMENDED ACTIONS:

Receive and file the attached report.

Jane Carney, Acting Chair
Mobile Source Committee

Background

Attendance

Committee Member Jane Carney, as Acting Chair, called the meeting to order at 9:00 a.m. Committee Member Jan Perry joined the meeting at 9:10 a.m. (via videoconference). Absent were Chairman Ron Loveridge, Vice-Chair Roy Wilson, and Committee Members Gary Ovitt and Bill Campbell. The following items were presented:
 

ACTION ITEMS:

1) Execute Contracts for Rule 2202 Air Quality Investment Program (AQIP)

Under this item five projects were recommended for funding for the total amount of $309,686. The total sum of available funds was $1.5 million, but the program Request for Proposal (RFP) was undersubscribed and the emission targets were not met. The remaining available funds and the balance of the unmet emissions reductions targets were moved to the next funding opportunity. However, the program’s overall emissions reductions targets are met due to available surplus from previously funded projects.

Since a quorum was not present at this meeting, this item was forwarded for Board consideration.
 

2) Approve Rule 2202 Marine Vessel Emission Reduction Quantification Protocol

This item was deferred to the November meeting.
 

INFORMATIONAL ITEMS:

3) Update on New International Marine Organization (IMO) Standards

Staff provided an overview of the IMO’s decision to adopt new engine and fuel standards for ocean-going vessels. The IMO’s decision on October 9, 2008 establishes lower sulfur content fuel standards and emissions standards for large marine engines commonly known as Category 3 marine engines. Relative to lower sulfur content marine fuels, the IMO decision would establish a global sulfur content standard of 35,000 ppm or 3.5% beginning in 2012. The existing standard is 45,000 ppm and the current in-use average is 27,000 ppm. The sulfur content would drop to 5,000 ppm beginning in 2020. As part of the IMO decision, countries can establish “Emission Control Areas” where the sulfur content is capped at 10,000 ppm beginning in mid-2010 and would further decrease to 1,000 ppm beginning in 2015. Countries proposing designations of emission control areas must apply to the IMO for ratification. CARB adopted new sulfur content standards for marine fuels in July 2008. The CARB regulation establishes a sulfur content limit of 5,000 ppm beginning in mid-2009 and 1,000 ppm beginning in 2012 (three years earlier than the requirements set by the IMO decision for emission control areas).

The IMO decision includes requirements to reduce NOx emissions for new vessel builds and requirements for certain existing marine vessels. For new vessel builds, the IMO decision requires that vessels constructed in 2011 and later, reduce NOx emissions by 20% compared to uncontrolled levels. In emission control areas, an 80% reduction in NOx emissions must be achieved for vessels built in 2016 and after. For vessels built in the 1990 to 1999 timeframe, the engines would be remanufactured to achieve a 15 to 20% reduction in NOx beginning in 2010, at major maintenance intervals and as retrofit kits become available. The 2007 State Implementation Plan (SIP) calls for a 30% reduction in NOx emissions by 2014 and 70% by 2023.

Staff indicated that the new IMO standards would not meet the air quality needs of the South Coast Air Basin. CARB will be developing regulations to clean up the main propulsion engines as part of the SIP commitment in the next two years. Staff also indicated that the Ports are providing incentives to marine vessel operators to use 0.2% or 2,000 ppm sulfur content fuels today. This voluntary program is a one year program. Staff will continue to work with the Ports to implement the program.
 

4) Annual Report on AB 2766 Funds from Motor Vehicle Registration Fees for
FY 2006-07

The purpose of this report is to present the outcome of FY 2006-07 AB 2766 Subvention Fund usage and program results to CARB, AQMD’s Board, local governments and other entities. AB 2766 was signed into law September 1990. It currently authorizes a $6 motor vehicle registration fee surcharge, of which 40% of $4 of the funds is subvened to local governments to implement projects that reduce mobile source emissions.

Staff reported on the Subvention Fund’s financial summary relative to the beginning balance ($31.8 mill), funds received ($20.3 mill), project spending ($20.1 mill), earmarked funds ($23.0 mill), and funds remaining after earmarking ($10.2 mill). Also, staff reported on the number of projects funded and quantified over the past five fiscal years. For FY 2006-07, local governments reported that they funded 381 projects of which 182 were quantified. Expenditures in 10 of the project categories indicated that Transportation Demand Management and Alternative Fuels had the highest spending. A total of 4639 tons of emissions (NOx, ROG, PM10 and CO/7) were reduced through implementation of the 381 projects. The overall average cost-effectiveness of all projects implemented was reported to be just under $1/lb.

The summary of accomplishments presented by staff indicated an increase in cost effectiveness, emission reductions, earmarked funds, and project quantification. Staff’s future efforts will focus on encouraging the funding of SIP creditable & cost effective projects, directing local government attention to AQMD’s preferred projects, enhancing AQMD’s outreach presence and collaborating with CARB to improve the AB 2766 Subvention Fund reporting process.
 

5) The Impact of Long-Range Transport From Asia

Staff provided a brief overview of the mechanism and impact of air pollution transport from Asia to the U.S.  Asian transport emissions mainly impact the Pacific Northwest.  Contributions to the Basin background concentrations are estimated to be a fraction of the total to the U.S. due to seasonal weather patterns.  The primary pollutants transported include ozone (and precursors), particulates and to a lesser extent selected toxic substances.  Although overall impacts to local background concentrations are projected to be low, research is ongoing to update current background concentrations and estimate future impacts.  This is important as attainment demonstrations will need to account for changes to background concentrations including those from long-range transport.

Jane Carney, Acting Chair, suggested that staff ask Dr. Burke whether he would like to include an oral presentation on this item on the Board agenda.
 

6) Update on CARB’s Rulemakings

Staff provided an update on CARB rulemaking activities to date. Relative to off-road rulemaking activities, CARB adopted two significant regulations: Ocean-Going Vessel Main Engine and Auxiliary Boiler Fuel Regulation in July 2008 (as discussed in Item No. 3) and Spark-ignition Marine Engine Regulations in September 2008. In November 2008, the CARB Board will be considering adoption of amendments to the Small Off-Road Engine (SORE) Regulation and the Large Spark-Ignition Engine (LSI) Regulation. CARB staff is proposing amendments to the SORE Regulation to adjust manufacturer’s credits for engine production. CARB staff found that the credits are overly beneficial to the manufacturer and do not lead to the production of engines that would be cleaner than the standard. The proposed amendment would fix this problem. Relative to the LSI Regulation, CARB staff is proposing more stringent standards for several categories of engines.

Relative to on-road mobile sources, CARB adopted revisions to the Zero Emissions Vehicle (ZEV) Program in March 2008 and is proposing an on-road heavy-duty diesel vehicle regulation. Staff provided an overview of the proposed on-road heavy-duty diesel vehicle regulation, which covers every vehicle with a gross vehicle weight rating of 14,000 lbs or greater that is not covered under existing in-use regulations such as vehicles in public fleets and utilities; transit buses, and refuse collection vehicles. School buses are also subject to the proposed regulation. However, school buses would only need to meet PM requirements.

Staff indicated that affected fleets (defined as one or more vehicles) would have a choice of three compliance options. The first option known as the “best available control technology” or BACT option would require vehicles of different model years to be replaced or retrofitted to meet 2010 emissions standards. The compliance year would begin in 2010 to meet PM BACT and 2012 to meet NOx and PM BACT. The second option is a vehicle turnover option which would require that 25% of the fleet be turned over per year to meet 2010 emissions standards again starting with PM requirements beginning in 2010 followed by NOx requirements beginning in 2012. The third option is to meet fleet average NOx and PM targets. The third option provides affected fleets the most flexibility in choosing which vehicles would be cleaned up or replaced to meet the fleet average targets. Special provisions are proposed for fleets with three or fewer vehicles (which make up about 48% of the statewide vehicle population), which provide more time for compliance.

CARB staff estimated that the cost to implement the regulation would be between $4.4 to $5.4 billion in 2008 dollars. The estimated cost-effectiveness of the proposed regulation ranges between $6,100 to $7,600 per ton of NOx reduced and between $90,000 to $110,000 per ton of PM reduced. Because of the cost of the proposed regulation, CARB staff is developing a loan assistance program to assist smaller fleets (those with three or fewer vehicles).

Relative to meeting the 2007 SIP commitment, CARB staff indicated that the proposed regulation would be short of the NOx target. However, the proposed regulation would provide greater PM benefits than committed in the 2007 SIP and the greater reductions make up for the NOx shortfall. As such, CARB staff believes that the proposed regulation has met the 2007 SIP commitment relative to the on-road heavy-duty vehicle control measure.

Lastly, staff indicated that CARB plans to release a staff report on the proposed regulation on October 24, 2008. The proposed regulation will be considered by the CARB Board in December 2008. Staff will be reviewing the staff report and prepare comments on the proposed regulation.
 

7) Study of Employee Work Trip Reduction

This item was deferred to the November meeting.
 

8) Rule 2202 Activity Report

 Written report submitted. No comments.
 

9) Monthly Report on Environmental Justice Initiatives – CEQA Document Commenting Update

Written report submitted. No comments.
 

10) Other Business

None

11) Public Comment
None
 

The meeting adjourned at 10:10 a.m.

Attachment
Attendance Roster