BOARD MEETING DATE: April 2, 2010
AGENDA NO. 20

REPORT:

Mobile Source Committee

SYNOPSIS:

The Mobile Source Committee met Friday, March 19, 2010. 9;Following is a summary of that meeting.

RECOMMENDED ACTION:

Receive and file the attached report.
 

Ronald O. Loveridge, Chair
Mobile Source Committee

Attendance

Chair Ronald Loveridge called the meeting to order at 9:05 a.m. Present at the AQMD were Committee Members Jane Carney and Josie Gonzales. Committee Member Bill Campbell and Jan Perry attended via videoconference. Vice-Chair Marion Ashley was absent. The following items were presented:

INFORMATIONAL ITEMS:

1) Update on Port Trucks Implementation and Tracking Operations

Per a request at the March 5, 2010 Board Meeting, Vicki White, Program Supervisor, described the methods used by AQMD and the Ports to monitor the operations of the new trucks funded through the Proposition 1B Program. An update on AQMD’s administration of the Proposition 1B program was provided. As part of an early grant, in May 2008, the Board approved 132 LNG truck projects which have been in operation since March 2009. In September 2009, the Board approved additional truck projects including a total of 1,373 trucks. About 610 of these trucks have been post-inspected, of which 415 trucks have been invoiced. Mayor Ron Loveridge asked about the meaning of the term “post-inspected”. Staff explained both the old and new trucks are inspected by AQMD to verify they meet the program requirements. A pre-inspection is performed on the old truck and a post-inspection is performed on the new truck. After the post-inspection, the AQMD can pay out the grant funds. In February 2010, the Board approved release of a new solicitation for Port trucks and other trucks (non-drayage trucks) engaged in goods movement operations. This solicitation closed on March 12, 2010 with an overwhelming response including over 1,300 applications. Each application may contain multiple trucks and staff is currently in the process of logging in all the trucks.

Mayor Loveridge asked about the funding sources for the grants. Staff explained CARB is providing $50,000 per truck through Proposition 1B and then AQMD is providing an additional incentive of $50,000 for an alternative fuel truck. The AQMD funds are comprised of mixed funds from the Ports and other grants received by AQMD. Staff commented they have received additional Proposition 1B funds from CARB for non-drayage trucks. Ms. Jane Carney asked about the universe of Port trucks. Staff explained the Ports have estimated about 17,000 drayage trucks. This number has decreased in recent years due to the economic downturn and implementation of the Clean Trucks Program and Statewide Drayage Truck Regulation. Ms. Carney commented that AQMD has approved about 1,500 drayage trucks in total, and asked how many more drayage trucks the new solicitation will be able to fund. Staff explained there are two main issues affecting the ability to fund drayage trucks: 1) the statewide regulation, and 2) the incentive part. Due to the statewide regulation, there are a fewer number of drayage trucks that can be funded. For this reason, CARB transferred the balance of funds in the drayage truck category to the other truck category which will allow funding for both drayage and non-drayage trucks. Staff explained the Ports have a requirement that took effect January 1, 2010 prohibiting trucks older than model year 2004 to enter the Ports unless retrofitted or meeting 2007 standards. In anticipation of this new requirement, many fleets purchased new diesel trucks on their own. Staff understands that close to 6,000 drayage trucks are already meeting the 2007 standards. The economy has also affected the number of trucks entering the Ports. Ms. Carney asked about the old trucks that are no longer able to enter the Ports. Staff explained many of the older trucks are operating as non-drayage trucks outside the Ports and the newer trucks are now visiting the Ports more frequently. The statewide regulation affects those trucks operating at the Ports and intermodal railyards. By January 1, 2014, the regulation will require all drayage trucks at the Ports and intermodal railyards to meet the 2007 standards. Ms. Carney said she understands there are pressures on the regulatory side and there is money on the incentive side all pushing toward cleaner trucks. Staff explained the Prop 1B program is needed to get more old trucks off the road and exchanged with new, cleaner trucks. Staff stated that the first phase of the new solicitation closed on March 12, 2010, but AQMD will continue to accept applications under the new solicitation through July 7, 2010.

Mayor Loveridge asked how trucking companies and individual owners/operators obtain a grant through the program. Staff explained that the AQMD has conducted extensive outreach with the help of the Ports and associations, such as the California Trucking Association. The applications are online and hard copies are made available at the Clean Trucks Center. The AQMD and Clean Trucks Center held one-on-one meetings with applicants to assist them with completing the application forms. Staff held many orientation workshops and contract workshops to walk-through the contract requirements. Staff explained that the applicants must provide 2 years of operational records and the new drayage truck must visit the Ports a minimum of 150 times per year if a diesel truck or 300 times per year if an alternative fuel truck and operate in California 100% of the time. AQMD staff will verify truck visits using Port records, receive annual reports from the Contractor over the 5-year term, and may conduct unannounced random inspections of the Contractor. The actual truck visits to the Ports are recorded using the PierPass system. Each truck is equipped with a radio frequency identification (RFID) tag that communicates wirelessly in real-time with the Ports’ database systems. If the RFID tag matches up with the information in the Ports database systems, the truck is allowed access to the Port. Each truck trip, in and out of the Ports, is tracked via this system. The Ports have agreed to share this information with AQMD staff to verify compliance with the annual Port trips requirement. Ms. Carney asked if the existing regulatory structure will be sufficient to incentive these trucks to stay in California after the five year period. Staff explained there will be another round of replacements for these trucks in the near future. Many of these trucks will be required to meet 2010 standards in the 2021 timeframe under the truck and bus regulation. There were no comments from the public. 

Supervisor Josie Gonzales arrived at 9:10 a.m.

2) Update on Proposed Amendment to Rule 1193 – Clean On-Road Residential and Commercial Collection Vehicles

Henry Hogo, Assistant Deputy Executive Officer, provided an update on activities on proposed amendments to Rule 1193 since the last Committee briefing in January 2010. Staff indicated that they have met with affected fleets and environmental organizations relative to the proposed amendments. A number of the affected fleets provided additional information regarding their contracting process and expressed concerns on their financial ability to acquire new alternative-fueled vehicles in an accelerated manner. In addition, written comments were received regarding alternatives to the proposed amendments. A draft Supplemental Environmental Assessment was released for public comment on March 17, 2010. A second public workshop was held on March 18, 2010 to present the proposed amendments, public comments received, the Supplemental Environmental Assessment, and the methodologies to conduct the socioeconomic evaluation. Staff provided an update on the NOx and greenhouse gas emissions benefits and cost information associated with the proposed amendments. Staff is in the process of completing the socioeconomic analysis.

Staff discussed some of the major comments received to-date. The most significant comment is on the ability of affected fleets to purchase additional rule-compliant vehicles on an accelerated basis. The existing rule requires affected fleets to purchase new rule-compliant vehicles at the time the fleet needs to add or replace vehicles in their fleet. Under the proposed amendments, as fleets enter into new contracts or renew existing contracts, they are required to phase-out existing non-rule compliant vehicles within two years for fleets with more than 50 vehicles, or three years for fleets with between 15 and 50 vehicles. One commenter proposed that an end date of 2020 be set where all fleets must have rule-compliant vehicles. Another commenter suggested that non-rule compliant vehicles older than 12 years would not be allowed to provide refuse service under a new or renewed contract (i.e., in any given year, vehicles older than 12 years would not be allowed to provide refuse service under a contract). This “rolling retirement of vehicles” is similar to how school districts contract for private school bus service in requesting buses that are typically seven years or newer.

Supervisor Bill Campbell commented that the proposed requirements put an undue financial burden on private fleets compared to public fleets. He also indicated that the full cost of the rule-compliant vehicle was not clearly provided in the cost impact information. Staff indicated that the economic analysis will contain information on full cost impacts including total capital costs. Staff indicated that they are evaluating the alternative proposal for a rolling 12 year retirement including an economic analysis of the proposal. In addition, staff indicated that under the provisions of Section 40447.5(a) of the Health and Safety Code, the AQMD’s authority applies to public fleets at the time public fleets are purchasing or replacing their vehicles and AQMD’s authority does not extend to setting a mandated schedule for replacement of vehicles.

Staff discussed other comments received, including requests to provide some relief to smaller fleets that operate in one jurisdiction or a limited number of jurisdictions. In addition, staff has been evaluating a request to exempt a portion of the roll-off and transfer vehicles from the proposed rule requirements for disaster similar to the provisions in Rule 1196. Staff will continue to meet with affected fleets in evaluating the requested exemptions.

Public comments were received from Mr. Paul Ryan, Mr. Kelly Astor, and Mr. Greg Adams. Mr. Ryan commented on the aggressive nature of the proposed amendments on private fleets having to purchase rule compliant vehicles at an accelerated rate and not having the financial ability to cover the costs without requesting their respective jurisdictions to raise rates to help cover the additional costs. Staff indicated that the accelerated purchase vehicles will be covered in the socioeconomic assessment.

Mr. Astor amplified on the comments provided by Mr. Ryan, indicating that the industry is rate regulated by local jurisdictions. Even with rate increases that may occur, waste hauling companies must still seek additional financing to be rule compliant. Mr. Astor expressed concerns relative to some fleets that only operate in the region and do not have the resources compared to “national” fleets that have access to larger financial resources, that these fleets must be looked at closer and some relief provided. In addition, Mr. Astor raised concerns that total conversion of every vehicle to rule compliant alternative fueled vehicles may leave the industry dependent on one fuel and if the fuel supply is disrupted (such as natural gas delivery) in a natural disaster, the industry cannot effectively respond to the disaster need. Staff indicated that this issue is being investigated and may propose provisions similar to what is currently in Rule 1196. Mr. Greg Adams added that the Sanitation Districts made the same comments regarding disruption in fuel supply and the need to have a small number of vehicles be powered by diesel fuel solely for the purpose of responding to natural disasters and other emergencies. Mr. Adams expressed their appreciation to include such a provision under Rule 1196.

Councilwoman Jan Perry left at 9:50 a.m. and Supervisor Bill Campbell left at
10:00 a.m. 

3) Update on CARB’s On-Road Truck & Bus Regulation and Off-Road Diesel Vehicle Regulation

Henry Hogo provided a brief update on the California Air Resources Board (CARB) Executive Officer’s Public Hearing regarding a petition by the Association of General Contractors of America (AGC) requesting a two year delay in the compliance of the Statewide Off-Road Diesel Vehicle Regulation. The Executive Officer’s Hearing held on March 11, 2010 was to seek input from affected off-road fleets on their ability to comply with the statewide regulation over the next two years. AGC claimed that the statewide Off-Road Diesel Vehicle Regulation caused immediate and irreparable harm; that the economy has not improved leading to little use of off-road diesel construction vehicles; and the emissions levels from off-road construction vehicles are such that the 2007 State Implementation Plan (SIP) for 2014 has already been met.

CARB took comments from 50 witnesses including the South Coast AQMD staff. Staff indicated that CARB does not need to make further amendments to the Statewide Off-Road Diesel Vehicle Regulation given the amendments made in 2009 to address the current economic situation. In addition, fleets that have submitted for funding under the Surplus Off-Road Opt-in for NOx (SOON) Program must comply with the statewide regulation before they can submit for SOON funding.

CARB staff indicated that the public comments received will be considered as CARB staff develops potential amendments for the 2014 timeframe. CARB staff indicated that they are in the process of reassessing the fine particulate attainment demonstration for 2014 with recent economic forecasts. A report will be provided to the CARB Board in April 2010. CARB staff will subsequently begin development of potential amendments to the Off-Road Diesel Vehicle Regulation. In addition, potential amendments to the On-Road Truck and Bus Regulation will also be developed. Subsequent to the April 2010 public meeting, CARB staff will begin a public process to seek input and comments on proposed rule amendments. Proposed amendments will be considered by the CARB Board in late August or early September 2010. AQMD staff will update the Committee as new developments occur. 

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 10:30 a.m.

Attachment (DOC, 53k)

Attendance Roster