BOARD MEETING DATE: April 12, 1996

AGENDA NO. 2

Proposal:

Set Public Hearing May 10, 1996, to Adopt Proposed
Rule 1623 - Credits for Clean Lawn and Garden Equipment

Synopsis:

Proposed Rule 1623 will provide a mechanism for generating MSERCs for either voluntarily replacing old high-polluting lawn and garden equipment with new low- or zero-emission equipment, or for selling new low- or zero-emission equipment without replacement. The proposed rule will meet the 1994 AQMP commitment for Control Measures MOF-03 and MOF-04, as well as provide incentives to accelerate the retirement of old high-polluting equipment and increase the use of new low- or zero-emission equipment.

Committee:

Mobile Source, March 29, 1996, Recommended for Approval

Recommended Action:

Set a Public Hearing May 10, 1996 to adopt Proposed Rule 1623 - Credits for Clean Lawn and Garden Equipment.

James M. Lents, Ph.D.
Executive Officer

BRW:CL:HH:DC:EE

Background

Proposed Rule 1623 is the second off-road MSERC program to be considered for adoption. On September 8, 1995, the Board adopted Rule 1620 - Credits for Clean Off-Road Equipment which provides a mechanism for off-road equipment operators to generate MSERCs for the retrofitting, purchase, or repowering of certain types of off-road equipment to meet low- or zero-emission emission levels. Proposed Rule 1623 continues the AQMD's efforts to develop programs to generate credits for off-road equipment for use in complying with other AQMD regulations.

Proposal

The proposed rule provides a mechanism for issuing NOx, VOC, CO, and PM MSERCs to anyone who voluntarily implements any one of three strategies:

1. before January 1, 1999, permanently scrap and replace existing (pre-1995) lawn and garden equipment with new equipment which meets the 1995 California Emission Standards for Utility and Lawn and Garden Engines;

2. permanently scrap and replace existing lawn and garden equipment with new low- or zero-emission equipment (i.e., equipment which meets the 1999 California Emission Standards for Utility and Lawn and Garden Engines, electric-powered equipment); or

3. prior to January 1, 1999, sell directly to an end user new low- or zero-emission lawn and garden equipment, or after January 1, 1999, sell directly to an end user new zero-emission equipment.

Proposed Rule 1623 establishes requirements for submission of applications, issuance of credits, MSERC calculation, use of credits, recordkeeping and enforcement. MSERCs issued under Proposed Rule 1623 may be used as RECLAIM Trading Credits, New Source Review (NSR) offsets, as an alternative method of compliance with AQMD Regulation XI rules with future compliance dates, and as a method of compliance with Rule 2202.

Relationship to Intercredit Trading Program

Two issues relating to the issuance of MSERCs under Proposed Rule 1623 are addressed by AQMD's proposed Intercredit Trading Program. The two issues are: MSERCs may be replaced with a universal trading credit; and the lifetime of credits issued under the proposed rule may be extended beyond two years. Subdivision (m) was added to Proposed Rule 1623 to ensure future consistency with any forthcoming Intercredit Program rules.

AQMP & Legal Mandates

The proposed rule meets the 1994 AQMP commitment in Control Measures MOF-03 and MOF-04 to adopt voluntary strategies to generate MSERCs from off-road sources. The proposed rule is intended to provide an alternative means of compliance with AQMD regulations, as well as accelerate the retirement of old high-polluting lawn and garden equipment and increased use of new low- or zero-emission equipment.

CEQA & Socioeconomic Analysis

Pursuant to the California Environmental Quality Act (CEQA) and the AQMD's Certified Regulatory Program (Rule 110), the AQMD has prepared a Draft Environmental Assessment (EA) for the proposed rule. The Draft EA was released on March 8, 1996, for a 30-day review and comment period. The Draft EA determined that the proposed rule generated no adverse environmental impacts. Responses to all comments received on the Draft EA will be included in the Final EA.

Resource Impacts

Sufficient resources have been budgeted in the AQMD Three-Year Budget Forecast.

Attachment (Down Load self-extracting compressed attachment package for this letter in M.S. Office 4.2. You may need to hold SHIFT key down while chicking on "Attachment")

A. Rule Development Process
B. Rule Language
C. Staff Report
D. Socioeconomic Analysis and CEQA Review