CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY AIR RESOURCES BOARD Air Resources Board Board Hearing Room, Lower Level 2020 "L" Street Sacramento, CA June 10, 1993 9:30 a.m. AGENDA Page 93-7-1 Public Meeting to Consider a Draft Report: 001 Planned Air Pollution Research: 1993 Update and Joint Meeting of the Research Screening Committee and the Air Resources Board. 93-7-2 Public Meeting to Consider Research Proposals: 097 93-7-3 Public Hearing to Consider the Adoption of 148 Amendments to the Emission Inventory Criteria and Guidelines Regulation Adopted Pursuant to the Air Toxics "Hot Spots" Information and Assessment Act of 1987. 93-7-4 Public Hearing to Consider Amendments to 429 Regulations Regarding California Exhaust Emission Standards and Test Procedures for 1985 and Subsequent Model Heavy-Duty Diesel-Engines and Vehicles, to Specify Standards for 1994 and Subsequent Urban Bus Engines. June 11, 1993 8:30 a.m. Those items listed above which are not completed on June 10 will be heard beginning at 8:30 a.m. on June 11. ITEM NO.: 93-7-1 Public Meeting to Consider Adoption of a Report Planned Air Pollution Research: 1993 Update and Joint Meeting of the Research Screening Committee and the Air Resources Board. RECOMMENDATION The Air Resources Board staff recommends that the Board approve the report Planned Air Pollution Research: 1993 Update. DISCUSSION In establishing the State's approach to achieving clean air, the Legislature has: declared that an effective research program is an integral part of the broad-based statewide effort to combat air pollution in California; directed the Air Resources Board to administer and coordinate all air pollution research funded, in whole or in part, with state funds; directed the Air Resources Board to establish objectives for air pollution research; and directed the Air Resources Board to appoint a Research Screening Committee to give advice and recommendations with respect to air pollution research projects funded by the State. In order to comply with these mandates from the legislature, the Board meets each year with its Research Screening Committee to review the Board's research program, as outlined in the Planned Air Pollution Research: 1993 Update. This document is prepared by the staff, with guidance from the Research Screening Committee. SUMMARY AND IMPACTS OF ACTION The report describes major ongoing research projects and new projects to be funded in Fiscal Year 1993-94. More detailed descriptions of the projects, a summary of recently completed projects, and the Air Resources Board's research budget for Fiscal Year 1993-94 are shown in the Appendices. Board approval of the report Planned Air Pollution Research: 1993 Update will authorize ARB staff to proceed with the research program outlined in the report. ITEM NO.: 93-7-3 Public Hearing to consider the Adoption of Amendments to the Emission Inventory Criteria and Guidelines Regulation Developed Pursuant to Requirements of the Air Toxics "Hot Spots" Information and Assessment Act of 1987. RECOMMENDATION The staff recommends that the Board adopt the proposed amendments to Sections 93300-93355, Titles 17 and 26, California Code of Regulations, which amend the Emission Inventory Criteria and Guidelines Regulation. DISCUSSION The existing criteria and guidelines regulation (the regulation was approved by the Board in April 1989, as required by the Air Toxics "Hot Spots" Act. The regulation was amended in 1990 to include procedures for biennial updates of emission inventories and to include specified facilities which emit less than ten tons per year of criteria pollutants. The regulation, if amended, would require significant risk facilities to update their emission changes biennially, but would allow facilities to focus their updated on those specific devices which drive the facilities' air toxics risks. High priority facilities would have to submit updates only for devices with significant changes. The facilities would also be allowed to focus the update on devices that drive the facility risk. All other facilities would be required to complete only summary forms except under certain circumstances under which they would be required to do emission updates. Other proposed amendments to the regulation would: allow facilities to be removed from the program when they no longer meet applicability requirements and are not of significant risk; allow facility operators to report "ND" (for non-detect) for reporting source testing-derived emissions which are below laboratory list of detection levels; delete unnecessary reporting forms; eliminate some source test requirements; and, make other clarifications and improvements to the emission inventory process. SUMMARY AND IMPACT Adoption of the proposed amendments to the regulation is not expected to result in any health or environmental impacts. The proposed amendments to the regulation will substantially reduce the emission inventory update reporting requirements resulting in major reductions in costs and workload for all facilities subject to the regulation. The amendments will create additional responsibilities for districts to determine which facilities must submit updates. However, they will have less update plans and reports to review. Consequently, we do not expect the districts to require additional resources. The program will focus the majority of resources on significant risk and high priority facilities, thereby maintaining the effectiveness of the program to identify air toxics "hot spots". ITEM NO.: 93-7-4 Public Hearing to Consider Amendments to Regulations Regarding California Exhaust Emission Standards and Test Procedures for 1985 and Subsequent Model Heavy-Duty Diesel-Engines and Vehicles, to Specify Standards for 1994 and Subsequent Urban Bus Engines. RECOMMENDATION Staff recommends that the Board adopt the proposed amendments to the "California Exhaust Emission Standards and Test Procedures for 1985 and Subsequent Model Heavy-Duty Diesel-Engines and Vehicles", specifically for 1994 and subsequent urban bus engines. DISCUSSION Senate Bill 135 (Stats. 1991, ch. 496) and Health and Safety Code section 43806 provide that the ARB shall adopt new emission standards and test procedures for transit buses to be implemented no later than January 1, 1996. This statute directs the ARB to set emission standards that would reflect the use of the best emission control technologies expected to be available at the time the standards and procedures become effective. In adopting the standards, the ARB shall consider the projected costs and availability of cleaner burning alternative fuels and low-emission vehicles compared with other air pollution control measures. Pursuant to section 43806, the ARB has consulted with the engine manufacturers, transit agencies, utility companies, and other related industries in developing the regulations. The proposed regulations would align California with the recently adopted federal Environmental Protection Agency's (EPA) regulations which require engines used in 1994 and 1995 model ;year urban buses to meet a 0.07 g/bhp-hr particulate matter (PM) standard and used in 1996 and later model year urban buses to meet a 0.05 g/bhp-hr PM standards with a 0.07 g/bhp-hr PM in-use standard. Also, the proposed regulations would require all 1996 and later California urban bus engines to meet a mandatory oxides of nitrogen (NOx) standard of 4.0 g/bhp-hr. Further, it is proposed that optional, more stringent, NOx emission standards be adopted, beginning with the 1994 model year, to facilitate mobile source emission reduction credit programs, which may encourage transit agencies to purchase cleaner operating urban buses. To help identify those engines that are certified to the proposed optional emission standards, it is proposed that information be added to the emission control label for each engine. This information would identify the engine by the optional NOx emission standard it is certified to, and would state that it meets all other applicable California emission standards for that particular engine model year. Supplemental emission control labels may be used as an option. Other proposed changes include adoption of the new federal urban bus definition that would clarify that urban buses are passenger-carrying vehicles, generally greater than 33,000 pounds gross vehicle weight rating, which use heavy heavy-duty engines. Also, the proposed regulations would align California regulations with the recently adopted federal extended useful life requirement of 10 years/290,000 miles for heavy heavy-duty diesel engines used in urban buses, for the 1994 and later model year PM standard. SUMMARY AND IMPACTS The proposed regulations would result in significant environmental benefits. The staff has estimated the statewide emissions benefit of the proposed mandatory emission standards for urban buses as 4.4 tons per day of NOx and 1.5 tons per day of PM by the year 2010. These reductions would account for 20 percent of the NOx and half of the PM emissions from urban buses statewide. The optional emission standards could provide increased flexibility to stationary sources in meeting regulations by allowing participation in an air pollution control district's mobile source emission reduction credit program. Given this premise, there would be no air quality benefits with the proposed optional standards, in that, the vehicle emission reductions would be offset by the allowed increase in stationary source emissions. However, an air pollution control district has the right to require that a percentage of the emission reductions be earmarked to improve air quality. Based on an optional 2.5 g/bhp-hr NOx standard as compared to the current 5.0 g/bhp-hr NOx standard, a total of about 6 tons of NOx would be reduced over the lifetime (12-year, 500,000 miles) of a bus. The overall lifetime NOx reduction for a fleet of buses will vary according to the optional NOx standards the buses are certified to and the number of buses in the fleet. There are several technical options available for manufacturers to develop diesel bus engines that would comply with the proposed mandatory 4.0 NOx standard. Staff has assigned a "worst case" cost estimate for these technologies as being a $5,000 incremental cost over a baseline trap-equipped urban bus engine. Also there would be a slight fuel penalty when using exhaust gas recirculation (EGR) technology that equates to approximately a 1 cent per mile fuel cost difference between a diesel-trap bus ($0.26/mile) and a diesel-trap bus with EGR ($0.27/mile). Therefore, the fuel cost for the lifetime of a diesel-trap bus (500,000 miles) is $130,000 and the lifetime fuel cost of a diesel-trap bus with EGR and related engine modifications is $135,000. The total incremental lifetime cost difference is $10,000. The emission reduction over the lifetime of an urban bus that meets the proposed mandatory NOx standard is expected to be 2.4 tons of NOx. Therefore, the overall cost effectiveness of the mandatory proposal is approximately $2.10 per pound of NOx reduced. The cost effectiveness of the proposed optional emission standards is not important for this regulatory action given that these standards are not mandated. However, for informational purposes, the cost effectiveness of the optional emission standards using a 2.5 g/bhp-hr NOx standard for a 200-bus fleet is estimated to be between $3.10 and $5.90 per pound of NOx reduced for using methanol urban buses and between $0.70 to $3.50 per pound of NOx reduced for using CNG urban buses. Manufacturers of urban bus engines and transit agencies that are subject to the proposed regulations, including incremental costs for meeting the proposed, more stringent, emission standards, test procedures, and other requirements of the regulations. The proposed regulations may also impose compliance costs on manufacturers directly affected, if manufacturers choose to use the optional supplemental labeling requirement provided by the regulations. Staff has determined that the maximum incremental cost to manufacturers for complying with the regulations is estimated to be $5,000 per bus or $1.5 to $2 million for an average California sales projection of 300 to 400 urban buses per year. Staff estimates that the maximum statewide incremental cost to transit agencies to purchase new California urban buses (600-800 engines) to meet the mandatory emission standards for 2 years is approximately $3.3 to $4.3 million (bus capital costs + fuel cost). This cost is based on the assumption that the same number of engines will be sold after the 1996 implementation of the mandatory urban bus standards and takes into account the EPA's adoption of a 4.0 g/bhp-hr NOx standard for 1998 and later heavy-duty engines (including buses). However, the actual costs will be unique to each transit agency, dependent on the number of new buses that are purchased.