BOARD MEETING DATE: June 4, 2010
AGENDA NO. 27

REPORT:

Mobile Source Committee

SYNOPSIS:

The Mobile Source Committee met Friday, May 21, 2010.
Following is a summary of that meeting.

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 9:15 a.m. Present at the AQMD were Committee Members Jane Carney and Josie Gonzales. Vice-Chair Marion Ashley, and Committee Members Bill Campbell and Jan Perry were present via videoconference. The following items were presented:

INFORMATIONAL ITEM:

1) Rule 2202 Program Status Report for Calendar Year 2009

Carol Gomez, Planning & Rules Manager, presented an annual program update for Rule 2202 – On-Road Motor Vehicle Mitigation Options for calendar year 2009. Rule 2202 requires employers with 250 or more employees on a full or part-time basis to implement an emissions reduction program to reduce mobile source emissions generated by employee commutes during peak hours. Approximately 1,400 worksites were regulated by this program at the end of 2009. Mayor Ron Loveridge asked how many worksites were regulated the previous year. Staff noted that as of December, 2008, the number of regulated worksites was 1,491, but as of April, 2010, the number of regulated worksites had dropped to 1,383.

Employers may select one of three program options to comply with Rule 2202: an Employee Commute Reduction Program (ECRP), Emissions Reduction Strategies (ERS), or an Air Quality Investment Program (AQIP). The ECRP requires employers to develop and implement an employee trip reduction program to assist them in reaching an average vehicle ridership (AVR) goal. If a worksite does not make progress towards their AVR goal, they are required to implement strategies from a menu of trip reduction options. The ERS requires employers to surrender mobile source emission reduction credits; and the AQIP requires payment into a fund which the AQMD utilizes to finance mobile source emission reduction projects. Employer participation in the compliance options was as follows: 41% ECRP, 50% ERS, and 9% AQIP. Tons per day of emissions reduced, was: 2.88 VOC, 3.04 NOx, and 27.22 CO.

Supervisor Bill Campbell asked about the AQIP project submitted by Disneyland Resort to repower Autopia cars. Supervisor Campell recently visited a Disney resort in Hong Kong and stated that the Autopia cars there run on electrical power (batteries). Bob Antonopolis, Vice President, Counsel for the Walt Disney Company, reported that Disney will not be implementing this project because of the high costs associated with this battery technology.

Outreach for Rule 2202 consists of information describing training for employee transportation coordinators (ETCs); the Transportation Program internet web site; participation in Rideshare events, and meetings held with consultants, Transportation Management Associations (TMAs), employers, and rideshare agencies. Twenty six classes throughout the District were held to train/certify 305 ETCs.

Additionally information was provided on the compliance component of the program that includes an audit process triggered by complaints and/or staff requests. 246 audits were conducted in 2009 resulting in 77 Notices to Comply and 17 Notices of Violation.

Ms. Jane Carney asked when was the last time that staff had reviewed the use of mobile source credits in Rule 2202. Staff replied that the last amendment to Rule 2202 was adopted in 2004 and the District is in the process of amending Rule 2202 for a Public Hearing in 2010.

2) Parking Cash-Out Legislation

Carol Gomez presented a summary of Parking Cash-Out requirements and AQMD’s potential role in its implementation. Senate Bill 728 (Lowenthal), signed into law October 11, 2009, gave authority to air districts or other regulatory agencies to enforce Parking Cash-Out (PCOP) which was codified in 1992 under Health and Safety Code 43845 and was enforceable only by the state Air Resources Board (CARB). The ordinance requires employers of 50 or more employees who offer a parking subsidy to offer the equivalent cash to employees who do not use a worksite parking space. Applicable employers are 

    • Employers with more than 50 employees, regardless of the number of worksites

    • Employers located in an air basin designated for non attainment of any state air quality standard

    • Employers that provide free or subsidized parking on leased spaces

    • Employers that are able to reduce the number of leased parking spaces without penalty

    • Employers that are able to calculate the expense of the parking subsidy, meaning that the parking is leased separately from building or office space

Though SB 728 reaffirms the authority of the CARB to impose a $500 civil penalty for violation of PCOP and establishes CARB as the hierarchical enforcement agency, the measure is silent on levels of penalties for other enforcement agencies, and is silent on the enforcement hierarchy between other regulatory bodies.

Prior to passage of SB 728, the AQMD had passed Rule 1504, a contingency rule which mandated enforcement of a PCOP if the U.S. EPA determined that AQMD failed to meet the National Primary Ambient Air Quality Standard for Carbon Monoxide (CO) by December 31, 2000. Because the U.S. EPA made no findings regarding AQMD’s CO status, Rule 1504 never went into effect, and in 2007 EPA designated the South Coast Air Basin in attainment for CO.

Recently, criticism has been made by the author of PCOP toward CARB and AQMD for lack of PCOP enforcement, specifically at the 2009 UCLA Transportation/Land Use/Environmental Connection Conference; a board member responded by endorsing enforcement of PCOP by the AQMD.

Currently, employers subject to Rule 2202 may select one of three program options to comply: an Employee Commute Reduction Program (ECRP), Emissions Reduction Strategies (ERS), or the Air Quality Investment Program (AQIP). The ECRP requires employers to develop and implement an employee trip reduction program which is to assist them in reaching an average vehicle ridership (AVR) goal. If a worksite does not make progress towards their AVR goal, they are required to implement strategies from a menu of trip reduction options. PCOP has been one of the voluntary strategies available for employers subject to Rule 2202, though very few employers submit this strategy for Rule 2202 compliance.

If the Board approves, the proposed amendments to Rule 2202 would include a requirement for subject employers who choose the ECRP compliance option to incorporate PCOP as a required program element if their worksite is subject to PCOP, and they have not met their average vehicle ridership (AVR) target. Some stakeholders have questioned whether enforcement of PCOP would be more effective under its own Rule, or whether PCOP should be applied to all program options. These stakeholders have questioned the potential for driving employers away from the ECRP compliance option.

Bob Antonopolis testified regarding the Walt Disney’s experience in implementing PCOP at their Glendale facility. Of the 320 employees at that worksite, only six to seven participated in PCOP, though the monthly parking charge paid was $65-$70 a month. Mr. Antonopolis found that at least as many employees were needed to administer the program as there were participants and that because the benefit is taxable, they found that employees that participate don’t see any benefit if they decide to drive in alone a few times a month to meet personal commitments. Barbara Baird, District Counsel, commented that there was a directive from the State Attorney General prior to the passage of SB 728 which stated that enforcement of PCOP was to remain with the State.

After discussing the merits of a parking cash-out program, the Committee Members unanimously agreed that the level of effort required in administering and enforcing this provision did not justify the potential emission reductions, and recommended that no further action be taken and that PCOP continue to be administered as a voluntary strategy under the ECRP component of Rule 2202.

Councilwoman Jan Perry left the meeting at 9:55 a.m. 

3) Update on CARB On-Road and Off-Road Regulations

Henry Hogo, Assistant Deputy Executive Officer, provided an update on recent CARB activities on the implementation of the statewide On-Road Truck and Bus Regulation and the statewide In-Use Off-Road Diesel Vehicle Regulation. In April 2010, CARB staff provided an update to their Board on the status of the two regulations and the request from the Association of General Contractors (AGC) to delay the implementation of the Off-Road Regulation for two years. AGC’s request is based on the current economic downturn resulting in reduced emissions and an independent analysis indicating that the off-road emissions inventory is overestimated by as much as three to four times. The independent analysis conducted at University of California Berkeley used fuel usage data as the primary information. However, emissions estimates are based not only on fuel usage, but also on engine load and age, operational hours, and number of vehicles. CARB staff conducted a more in-depth update of the off-road emissions model and concluded that overall off-road emissions may be about 1.5 to two times higher than originally estimated. CARB staff indicated that for the South Coast in 2014, off-road emissions are about 46 to 67 tons/day lower in NOx equivalent emissions (the sum of NOx emissions plus ten times PM emissions).

CARB staff conducted a similar evaluation of the on-road emissions inventory estimates. The focus of the analysis included more specific information regarding vehicle age, vocation, and origin/destination data. CARB conducted a heavy-duty truck field survey in 2007 to 2009, collecting information regarding vehicle types and origin/destinations at 50 sampling locations throughout California. On-road heavy-duty vehicle emissions are estimated on a statewide basis and allocated to each region based on the 2007-2009 field study. Based on this information and registration data, the on-road emissions estimates for the South Coast in 2014 are projected to increase by about 25 tons/day of NOx equivalent emissions compared to the emissions estimated in the 2007 AQMP.

CARB staff estimates that overall NOx equivalent emissions from off-road vehicles and on-road trucks operating in the South Coast in 2014 would be between 21 to 42 tons/day lower than the estimates from the 2007 AQMP. As such, CARB staff indicated that there may be opportunities to provide further compliance relief in the early years and perhaps beyond the 2014 timeframe. However, CARB staff indicated that there cannot be wholesale relief to the off-road sector given the increase in emissions from the on-road sector. CARB staff is finalizing the inventory updates and will present more detailed emissions estimates in June 2010.

Relative to potential amendments to the On-Road Truck and Bus Regulation, CARB staff is considering additional flexibility in the 2014 timeframe in addition to their proposals released in January 2010. Other potential amendments include increasing mileage thresholds, more gradual PM retrofit requirement rate, and extending credits beyond 2014. In addition, CARB staff is considering providing further relief to specific vocational vehicles used in the logging industry and by smaller fleets.

Relative to potential amendments to the Off-Road Diesel Vehicle Regulation, CARB staff is considering delaying the first compliance date; more flexibility to use turnover or repowering options for compliance in lieu of retrofitting; reducing annual turnover/retrofit rate requirements prior to 2015, and relaxing the fleet average targets. Comments received from affected fleets include up to a five-year delay in rule implementation, addition credits for early actions, and making the regulation less complicated.

AQMD staff provided initial comments at the April 2010 CARB Board meeting regarding the need to achieve the emission reductions needed by 2014 for the South Coast to attain the PM2.5 air quality standard. Staff indicated that at some point in the future, off-road and on-road emissions will be higher as the economy picks up. If the existing older, dirtier diesel vehicles are not cleaned up earlier, additional reductions will be needed in the long-term to meet future, tighter air quality standards. In addition, there is a need to provide greater flexibility in incentives grant funding such that affected fleets can clean up earlier.

CARB staff indicated that specific amendment proposals will be release for public comments in June 2010 with an anticipated CARB Board consideration in September 2010. Committee members commented on the complexity of the regulations and impact the economy has had in implementation of the regulations. In addition, a Committee member commented on the need to balance the financial impacts on fleets with regulatory requirements relative to all regulations including local rules. A question was asked whether proposed amendments would affect the SOON Program. Staff indicated that there may be potential amendments. However, staff believes that the SOON Program can continue to move forward, especially if there are delays in compliance with the statewide regulation.

A public comment was received that there were no construction/demolition related materials received at the Puente Hills Landfill in 2009, which is a strong indication of the downturn in the construction industry. A question was asked whether the revised emissions have an impact on the transportation conformity budgets. Staff indicated that the revisions to the heavy-duty emissions are only one part of the transportation budgets and that light-duty vehicles emissions have not been reviewed. In addition, the South Coast transportation budgets are with CARB for their action. 

Supervisor Marion Ashley left the meeting at 10:10 a.m.

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

Ms. Carney requested that staff brief the Committee on potential ammonia emissions from Selective Catalytic Reduction (SCR) applications by mobile sources at a future meeting.

7) Public Comment
None

The meeting adjourned at 10:28 a.m.

Attachment (DOC, 48k)

Attendance Roster




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