House of Representatives

HB 2538

brown cloud study; air quality

Sponsor: Rep. Allen

 

DPA

Committee on Environment

DP

Committee on Appropriations

DPA

Caucus and COW

 

x

As Transmitted to Governor

 

HB 2538 implements some of the recommendations from the Governor's Brown Cloud Summit.  The bill also makes revisions to the programs funded by the Clean Air Fund (CAF) and terminates the program and the in lieu fee 6/30/03.  Brown cloud programs are funded by the CAF for FY 02 and 03.

 

History

In March, 2000 Governor Hull established the Brown Cloud Summit to investigate topics including:

·        Identity ways to reduce the brown cloud.

·        Develop proposals on how to put the pollution-fighting measures into action and work to get them done.

 

The Brown Cloud Summit's January 16, 2001 final report is available at http://www.adeq.state.az.us/environ/air/browncloud/index.html

 

Brown Cloud

 

Area A boundary  (ARS 49-541)

·        Expansion of area A-  includes additional territory to the west; 1/1/02 is the effective date for measures in the newly expanded portion of area A except for public sector alternative fuel requirements that have later dates. 

 

Engine idling  (ARS 11-877)

·        By 07/01/02, mandatory engine idling restrictions for engines that propel a heavy duty diesel vehicle (GVW 14,000+ pounds) in Area A; discretionary in other counties.  Exemptions would include:

·        Certain types of vehicles such as police, fire and emergency vehicles. 

·        Certain situations such as traffic delays or the need for a driver to sleep in the vehicle

·        Certain types of equipment operation such as refrigeration of cargo.

·        A civil penalty applies to the driver for violation:

                        1st violation - $100

                        2nd and subsequent violations- $300

·        A county control officer may enforce ordinances or any law enforcement officer authorized to enforce traffic laws.   

·        Idling is defined as the operation of an engine in the operating mode, where the engine in not engaged in gear and the engine operates at a speed at the RPM specified by the engine or vehicle manufacturer for when the accelerator is fully released and there is no load on the engine.

 

Voluntary construction program; generators  (session law section 21)

·        There is a 5 year voluntary program among power suppliers and the construction industry to identify viable sources of electric power to reduce the use of generators.  A written status report is due February 1, 2003 and 2004.

 

Roadside diesel testing program  (ARS 49-542.06 and 542.07 and session law section 19)

·        There are general guidelines for opacity cutpoints, citations and alternative standards.   DEQ may contract with an independent contractor to implement the program.  If an independent contractor is used, DOA, in consultation with DEQ shall administer the RFP and award process.  The smoke testing procedures shall be conducted in accordance with SAE J1667, snap acceleration smoke test procedure for heavy duty diesel vehicles.

·        DEQ shall administer the pilot program for the emissions testing of diesel vehicles with a GVWR of >10,000 pounds;  interested contractors would have the opportunity to participate in the program as a prerequisite to bid on the program;  they would operate a program for at least a 3-week period to demonstrate the operational aspects;

·        DEQ shall collect pilot program data including the feasibility of a civil penalty system and submit the report to the diesel vehicle emissions testing committee-  (4 House, 4 Senate, DEQ director, 2 trucking industry).   The study committee report is due 9/30/02.

·         Penalties for the roadside diesel emission testing program: for the first offense $150, subsequent penalties are $800 or $1800;  penalties are not subject to any additional fee or surcharge.

 

Voluntary tier 2/3 equipment (ARS 49-558)

·        Public and private sector entities may purchase or retrofit nonroad equipment in area A or B;  entities may submit documentation to DEQ, that shall be identified on the agency's website;  if possible, that information shall include estimates on emissions reductions and visibility improvements;  DEQ shall cooperate with manufacturers and distributors to determine extent of availability of equipment and provide information to potential purchasers

 

Voluntary ultra low sulfur diesel  (ARS 49-558.01)

·        Public and private sector entities may use the fuel in vehicles retrofitted with oxidation catalysts and particulate filters in area A or B; entities may submit documentation to DEQ, that shall be identified on the agency's website;  if possible, that information shall include estimates on emissions reductions and visibility improvements; DEQ shall cooperate with manufacturers and distributors to determine extent of availability of fuel and equipment and provide information to potential purchasers

 

Bypass  (ARS 28-363)

·        ADOT shall develop a plan to increase the use of bypass routes on days of poor visibility in the Phoenix metropolitan area.

 

V2R2 (voluntary vehicle repair and retrofit) (ARS 49-474.03)

·        Diesel vehicles that fail the centralized emissions test may participate in the program. 

·        Not more than 25% of the program funds in any year may be used for the diesel portion (was 20%).

 

Visibility index  (session law section 20)

·        DEQ shall establish a daily index by 12/31/03 for area A; index based on results of an Area A survey of residents;  prior to establishment of index director shall use the number of blue sky days (6 hour average visibility range in area A is 25 miles or more) as an interim method of evaluating and reporting current visibility conditions and progress toward visibility improvement;  blue sky targets:  250 days in 2001, 260 days in 2002, 275 days in 2003;  periodic reports issued by DEQ . The index would not be used as a standard or for the purpose of establishing emissions limitations in permits issued by DEQ or a county control officer.

 

Emissions bank  (ARS 49-410)  (modifies existing law)

·        DEQ's emissions bank program identifies specific air pollutants (particulate matter, sulfur dioxide, carbon monoxide, nitrogen dioxide or volatile organic compounds). The start date of the program is January 1, 2002 (was 2001).

 

Clean Air Fund (41-1516)

·        The Clean Air Fund (CAF) is repealed from and after June 30, 2003; the in lieu fee for emissions testing is also terminated on that date; the $250K transfer from the air quality fund to the CAF is terminated effective 7/1/01.

·        The remaining programs in the Clean Air Fund are the diesel conversion program and statewide refueling stations.

·        The Energy Office may use Clean Air Fund (CAF) monies for administration of the fund.

·        The diesel conversion program has eligibility criteria:

·        19,500 GVWR.

·        The vehicle is not an RV.

·        AZ registration for at least 3 years and intention to operate in area A or area B more than half the time.

·        Complies with title 28 financial responsibility requirements (except for school buses and municipal vehicles).

·        Individuals cannot claim income tax credit

·        Penalties: amount of the grant plus $1000.

 

·        The diesel conversion grant amount is changed from the greater of 30% of the original manufacturer's base retail price or $30,000 to the lesser of the cost of conversion or $30,000; the aggregate total of grants shall not exceed $6.5 million.  (changes are effective 7/1/01)

 

·        Funding for refueling systems include:  (changes are effective 7/1/01)

·        Not more than 5 natural gas refueling systems for Area A

·        Not more than 2 natural gas refueling systems for Area B.

·        1 natural gas refueling system in Casa Grande.

·        The amount of the grant is 75% of the reasonable costs;  the Energy Office shall review and determine the reasonableness of the costs of the delivery systems in determining the amounts and recipients of the grants

 

·        Effective date for changes to CAF is 7/1/01; CAF and in lieu programs are repealed effective 7/1/03.

 

·        An applicant who meets the requirements for the diesel replacement or conversion program for vehicles with a GVWR over 19,500 documented by a purchase order or contract dated prior to 10/20/00 (Dec 2000 special session law) are eligible for a grants pool of $6.5 million;  applicants who do not receive grants from this pool are still eligible to participate in the program but under the additional criteria of: 3 years registration in the state and the intention to operate more than 50% of the time in area A or area B; meet title 28 financial responsibility requirements; no income tax credits; no RVs.

 

·        The committee of reference of the House Environment Committee and the Senate Natural Resources, Agriculture and Environment Committee will review the following:

1.      The future of the CAF relating to funding sources and types of programs funded.

2.      The future of the air quality fund relating to funding sources and the types of programs funded.

3.       The entity or entities responsible for the administration of state air quality control measure funding programs.

4.      The criteria or assessment tools used to determine state air quality control measure funding programs.

5.      The use of a performance standard for state air quality control measures.

6.      State alternative fuel mandates for government fleets.

7.      Recent expansions to area A and the effects of those expansions on service levels at emission testing stations, driving distance for users from those areas and the cost effectiveness of providing services to users from those areas.

8.      The existing price controls on natural gas dispensed from gas stations that receive CAF grants (15 cents per gallon for equipment and maintenance and an additional 15 cents as profit.)

 

 

VEI (49-542)

·        An on-board diagnostic (OBD) check may be used to satisfy Area B emissions testing. The test would fall under the requirements of Title II of the Clean Air Act. (The provision already exists in law for area A; it was for advisory purposes in area B.)

 

·        Section 49-541.01, VEI test for constant 4X4s in Area A, is repealed.

 

 

Funding

 

·        The following fund transfers and apportionments are from the Clean Air Fund to implement the brown cloud measures and CAF programs:

 

Program description                  FY 02              FY 03                          total

HD diesel conversion  (CAF)$5.500                 $6.500             $12,000,000

Roadside diesel testing  $  .200             $  .200             $    400,000

Area A ord/expansion               $  .125             --------                        $    125,000

Visibility index              $  .450             $  .300             $    750,000

Cap and trade                          $  .300             $  .300             $    600,000

Refueling stations

(75%) (CAF)                           $1.125             $1.800             $  2,925,000

V2R2                                       $  .400             $2.600             $  3,000,000

VEI test buydown (existing)   $3.600              --------  $  3,600,000

(from SB 1504, laws 2000)

 

TOTAL                                    $11.700           $11.700          $23,400,000

 

·        The above amounts are based on the in lieu fees generating $11.7M per year.  If this amount is not generated, the funding will be reduced proportionally for the two CAF programs.

 

 

 

 

 

 

 

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45th Legislature                                                                                                                                   

Second Regular Session                                   3                                                               May 7, 2001

 

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