ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
brown cloud study;
air quality
Adopts and implements a number of the measures recommended by the Governor’s Brown Cloud Summit to reduce the brown cloud in the urbanized areas of the state, including imposing diesel engine idling restrictions in Area A (primarily Maricopa County), expanding the Area A nonattainment area, implementing a roadside diesel emission testing program, continuing funding for the voluntary vehicle repair and retrofit program and continuing limited uses of the Arizona clean air fund for two years for converting heavy-duty vehicles to operate on alternative fuels and for the construction of natural gas refueling stations.
In March 2000, Governor Jane Hull established the Brown Cloud Summit by executive order (EO 2000-3) to identify ways of reducing the brown cloud and recommend proposals to address the pollution that contributes to the brown cloud. The summit adopted its final recommendations in January 2001. These recommendations generally address three categories: 1) long-term market driven strategies to improve visibility and provide health benefits; 2) short-term and long-term voluntary and mandatory measures to reduce emissions and improve public health; and 3) goals established with citizen input to improve the brown cloud and improve monitoring of the brown cloud.
The brown cloud is generally acknowledged to be the combination of carbon particles and nitrogen dioxide gas that creates the brown color of haze. Extremely small particles of pollutants, such as particulate matter and the chemical conversion of nitrogen dioxide and sulfur dioxide to particles, generally comprise the brown cloud.
H.B. 2538 contains several of the measures recommended by the Governor’s Brown Cloud Summit and provides for the distribution of $8.1 million in FY 2001-2002 and $11.7 million in FY 2002-2003 from the Arizona clean air fund to fund the air quality measures contained in this bill.
Restriction on Engine Idling (Section 11-877)
1. Requires counties in Area A to implement and enforce restrictions on engine idling for heavy duty diesel vehicles over 14,000 pounds gross vehicle weight rating (GVWR) within Area A. Allows other counties to adopt ordinances to restrict engine idling.
2. Requires the ordinances to provide exemptions for at least the following:
· Vehicles such as police, fire and emergency vehicles.
· Situations such as traffic delays or the need for a driver to sleep in the vehicle.
· Equipment operation such as refrigeration of cargo.
3. Establishes the following civil penalties for violation of diesel idling restrictions:
· $100 first violation
· $300 second and subsequent violations
4. Allows diesel idling ordinances to be enforced through a uniform traffic ticket issued by a county control officer or any law enforcement officer authorized to enforce traffic laws.
5. Defines idling to mean 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.
6. Expands the Area A boundaries to include additional portions of Maricopa County west of Goodyear and Peoria, as well as a small piece of land on the north end of Lake Pleasant that is currently land locked by the nonattainment area boundaries. (Section 49-541)
7. Specifies that the enforcement of air quality measures in the newly expanded portion of Area A, including vehicle emissions inspection compliance, start on January 1, 2002, except for public sector alternative fuel requirements which are phased in over a seven year period. (Sections 15 and 16, session law)
8. Requires ADEQ, from and after June 30, 2003, to establish and administer a roadside diesel testing program for diesel vehicles over 10,000 pounds GVWR , including apportioned vehicles, operating in Area A or Area B (Pima County). Smoke testing procedures and measuring equipment are to conform to the SAE J1667 standards (snap acceleration smoke test procedure).
9. Requires ADEQ to develop maximum allowable opacity cutpoints, as well as criteria and procedures to validate that meters produce consistent and repeatable results.
10. Requires the program to include appropriate visual screenings and provide for the issuance of citations for failure to comply. Requires the program to provide for alternative standards for vehicles that meet engine manufacturers’ specifications.
11. Authorizes ADEQ to contract with an independent contractor to implement the program. If an independent contractor is utilized, the Department of Administration is required to administer the request for proposal (RFP) and award processes.
12. Establishes civil penalties for drivers who fail the opacity test or refuse to submit to the test. The penalties range from $150 to $1,800 depending on degree of test failure and the timeframe in which compliance and penalty payment is made. Penalties are not subject to any additional fee or surcharge and are to be deposited to the state general fund.
13. Allows the Director of the Arizona Department of Transportation (ADOT) to suspend the registration of a vehicle for which a civil penalty is not paid. A person with a suspended registration may apply for reinstatement of the registration once the penalty and any applicable fees are paid.
14. Specifies that notices of violation and citations issued and penalties assessed are appealable agency actions.
15. Requires ADEQ to administer a pilot program to allow interested vendors to demonstrate their roadside testing capabilities. Requires interested vendors to participate in the pilot program as a prerequisite for participating in the RFP for operating the program. The vendors will demonstrate their testing technology over a three-week demonstration period and shall not be paid any fee for tests conducted. (Section 19, session law)
16. Establishes a study committee to review the report on the pilot program and make recommendations to the Governor and Legislature by September 30, 2002. (Section 19, session law)
Voluntary Compliance with Tier 2
or Tier 3 (Section 49-558)
17. Allows public and private sector entities in Area A or B to purchase or retrofit nonroad equipment that meets the federal Tier 2 or Tier 3 standards for nonroad equipment.
18. Allows entities that voluntarily comply with Tier 2 or Tier 3 standards to submit documentation of this compliance to ADEQ, who shall identify these entities on the agency's website. Specifies that if possible, the information on the website shall include estimates on emissions reductions and visibility improvements.
19. Requires ADEQ to cooperate with manufacturers and distributors to determine the availability of Tier 2 and Tier 3 equipment and provide information to potential purchasers.
Voluntary Use of Ultra Low Sulfur
Diesel Fuel (Section 49-558.01)
20. Allows public and private sector entities to use federal ultra low sulfur fuel in vehicles retrofitted with oxidation catalysts and particulate filters in Area A or B. Allows those entities to submit documentation of this fuel use to ADEQ, who shall identify these entities on the agency's website. Specifies that if possible, that information on the website shall include estimates on emissions reductions and visibility improvements.
21. Requires ADEQ to cooperate with manufacturers and distributors to determine extent of availability of the fuel and equipment and provide information to potential purchasers
Urban Area Bypass Routes (Section
28-363)
22. Requires ADOT to develop a plan to increase the use of bypass routes on days of poor visibility in the Phoenix metropolitan area.
Voluntary Vehicle Repair and
Retrofit (VVRR) Program (Section
49-474.03)
23. Allows diesel vehicles that fail the centralized emissions test to participate in the VVRR program.
24. Increases the cap on the use of monies in the VVRR program fund for repairing diesels from 20 percent to 25 percent.
Daily Visibility Index (Section 20, session law)
25. Requires ADEQ to establish a daily visibility index by December 31, 2003 for Area A and provides that the index is to be based on results of a public survey of residents of Area A. Prior to the establishment of this index the Director of ADEQ shall use the number of blue sky days as an interim method of evaluating and reporting visibility conditions and progress toward visibility improvement.
26. Defines blue sky days to mean those days during which the six-hour average visible range is 25 miles or more.
27. Specifies the following blue sky day targets:
· 250 days in 2001
· 260 days in 2002
· 275 days in 2003
28. Requires ADEQ to issue periodic reports on the number of blue sky days that have occurred during the year and how that number compares with the established targets.
29. Prohibits the use of the visibility index as a standard or for the purpose of establishing emissions limitations in permits issued by ADEQ or a county control officer.
Arizona Emissions Bank
Program (Section 49-410)
30. Specifies that the emissions bank program administered by ADEQ includes the banking and trading of emissions credits for specific air pollutants (particulate matter, sulfur dioxide, carbon monoxide, nitrogen dioxide or volatile organic compounds).
31. Delays the adoption of rules by ADEQ for the program by one year, until January 1, 2002.
Reduced Use of Gas or Diesel
Generators in Construction (Section 21,
session law)
32. Makes compliance mandatory for the existing five-year voluntary program that allows utilities and the construction industry to identify viable sources of electric power to reduce the use of gas or diesel powered generators in the construction industry.
33. Requires written status reports on compliance with this program to be submitted to the Governor and the Legislature by February 1, 2003 and 2004.
Arizona Clean Air Fund (Section 41-1516)
34. Continues for two years the program to grant monies from the Arizona clean air fund (ACAF) for the conversion of heavy-duty diesel vehicles to run on alternative fuel and to provide grants for the construction of not more than eight natural gas refueling systems at public gas stations in urban areas of the state.
35. Allows the Department of Commerce to use monies in the ACAF for administration of the fund.
36. Caps the grants for the natural gas refueling stations at not more than 75 percent of the reasonable costs.
37. Changes the amount of the ACAF grants for converting heavy-duty diesel vehicles to run on alternative fuel to be either the cost of conversion or $30,000, whichever is less.
38. Requires applicants for grants from the ACAF for the conversion of heavy duty diesel vehicles to meet all of the following:
· The vehicle must have a gross vehicle weight rating of at least 19,500 pounds.
· The vehicle must be subject to the motor carrier financial responsibility requirements for heavy-duty commercial vehicles (required for vehicles with a declared gross weight of at least 20,000 pounds).
· The vehicle cannot be a recreational vehicle.
· The vehicle must be registered in Arizona.
· The vehicle is not eligible for an income tax credit.
· The grant recipient must sign a statement indicating that it is the applicant's intent to keep the vehicle registered in Arizona for at least three years and operate it in Area A (Maricopa County) or Area B (Pima County) more than 50 percent of the time.
39. Establishes a civil penalty equal to the amount of a diesel conversion grant plus $1,000 for violations of the grant eligibility criteria.
40. Disallows the replacement of heavy-duty diesel vehicles with alternative fuel vehicles (e.g. replacing a diesel vehicle with a gasoline-powered truck that has been converted to run on alternative fuel).
41. Clarifies that school buses and heavy-duty municipal vehicles are eligible for ACAF grants for conversion to operate on alternative fuel as long as all eligibility criteria are met, with the exception of the motor carrier financial responsibility requirements for commercial vehicles.
42. Specifies that applicants who meet the requirements for the diesel replacement or conversion program for vehicles with a GVWR over 19,500 pounds documented by a purchase order or contract dated prior to October 20, 2000, are eligible for grants for the first $6.5 million available for the diesel grants. Applicants who do not receive grants from this pool are still eligible to participate in the program, but they must meet the new eligibility criteria that take effect on July 1, 2001 (e.g. the vehicle must be registered in this state; the recipient must sign a statement of their intent to operate more than 50 percent of the time in Area A or Area B; etc.) (Section 25, session law)
43. Specifies that the changes to the ACAF program are retroactive to July 1, 2001. (Section 26, session law)
44. Repeals the ACAF and the in lieu emissions test fee collected from the owners of the five newest model year vehicles on June 30, 2003. (Section 49-543 and Section 28, session law)
45. Requires the legislative Committees of Reference responsible for environmental issues to review state air quality control measures programs and funding sources; the expansion of Area A; and the price controls on natural gas dispensed from refueling systems funded by ACAF grants. Requires the Committees of Reference to make recommendations to the Legislature and the Governor by December 14, 2001. (Section 22, session law)
46. Distributes the following amounts from the ACAF (Section 23, session law):
Emissions Inspection Test Buydown (current law) $3,600,000
Heavy Duty Diesel Conversions $5,500,000
Voluntary Vehicle Repair & Retrofit Program $ 400,000
Roadside Diesel Emissions Testing Program $ 200,000
Area A Expansion Compliance Assistance $ 125,000
ADEQ Visibility Index $ 450,000
Emissions Cap and Trading Program $ 300,000
Alternative Fuel Refueling Stations (funded at 75%) $1,125,000
Total: $11,700,000
Heavy Duty Diesel Conversions $6,500,000
Voluntary Vehicle Repair & Retrofit Program $2,600,000
Roadside Diesel Emissions Testing Program $ 200,000
ADEQ Visibility Index $ 300,000
Emissions Cap and Trading Program $ 300,000
Alternative Fuel Refueling Stations (funded at 75%) $1,800,000
Total: $11,700,000
47. Specifies that if $11.7 million is not available in either FY 2001-2001 or FY 2002-2003, the monies apportioned within the ACAF for heavy-duty diesel grants and refueling station grants will be reduced proportionately. (Section 23, session law)
48. Eliminates, beginning in FY 2002, the $250,000 transfer from the air quality fund to the ACAF. (Sections 49-551 and Section 24, session law)
49. Prohibits the Department of Commerce from transferring $2 million dollars obtained by the state from legal settlements involving insolvent domestic insurers into the ACAF. Specifically, the Department is prohibited from transferring more than $1 million in FY 2001 from the general fund to the ACAF. Any monies transferred over this amount must be transferred back to the general fund. This results in $2 million being transferred back to the general fund. (Section 32, session law)
Vehicle Emissions Inspection Program
50. Authorizes the use of the on board diagnostic (OBD) check in Area B for vehicle emissions testing purposes. (Section 49-542)
51. Repeals the requirement that constant 4x4 vehicles undergo the transient loaded emissions test. (Sections 29 and 30, session law)
52. Makes technical and conforming changes.
53. Provides for a general effective date.
1.
Delays the
implementation and enforcement of the roadside diesel emissions testing program
until July 1, 2003 and requires ADEQ to administer a pilot program to allow the
demonstration of the roadside testing capabilities of the interested vendors.
2.
Establishes a study
committee to review the report on the pilot program and make recommendations to
the Governor and Legislature. Eliminates the FY 2001-2002 and FY 2002-2003
state general fund appropriations for implementation and enforcement of the program.
1. Incorporates the provisions of S.B. 1249 as passed by the Senate and amended by the House Environment Committee relating to the limited continuation of the ACAF for the purpose of funding the conversion of heavy duty diesel vehicles to run on alternative fuels and the construction of a limited number of alternative fuel refueling stations.
2. Includes the provisions of the Senate NRAE Committee amendment to delay the implementation of the proposed roadside diesel emissions testing program for two years, subject to the outcome of a pilot program.
3. Eliminates the state general fund appropriations and instead appropriates monies from the ACAF for the purposes of the bill.
Amendments Adopted by Committee of the Whole
1. Allows the Department of Commerce to use ACAF monies for administration of the fund.
2. Limits statewide refueling station grants to not more than five in area A, not more than two in area B and one in Casa Grande. Caps the grants at not more than 75 percent of the reasonable costs. Eliminates grants for propane refueling systems, but allows LNG.
3. Authorizes the use of the on board diagnostic (OBD) check in Area B for vehicle emissions testing purposes and repeals the requirement that constant 4x4 vehicles undergo the transient loaded emissions test.
4. Reduces penalties for the roadside diesel emission testing program for a first offense and stipulates that penalties are not subject to any additional fee or surcharge. Requires the legislative study committee to study and make recommendations on the appropriate penalties.
5. Specifies additional responsibilities of the committee of reference, including:
a) 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.
b) The existing price controls on natural gas dispensed from gas stations that receive ACAF grants (15 cents per gallon for equipment and maintenance and an additional 15 cents as profit.)
6. Increases the cap on the use of monies in the VVRR program fund for repairing diesels from 20 percent to 25 percent.
7. Eliminates, beginning in FY 2002, the $250,000 transfer from the air quality fund to the ACAF.
8. Makes the effective date for changes to the ACAF program retroactive to from and after July 1, 2001.
9. Specifies that applicants who meet 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 October 20, 2000, are eligible for grants for the first $6.5 million available for the diesel grants. Applicants who do not receive grants from this pool are still eligible to participate in the program, but they must meet the new eligibility criteria that take effect on July 1, 2001 (e.g. the vehicle must be registered in this state; the recipient must sign a statement of their intent to operate more than 50 percent of the time in Area A or Area B; etc.)
10. Retains the minimum vehicle weight for eligibility to participate in the diesel grant program at 19,500 pounds GVWR.
11. Allows any heavy duty municipal vehicles to be eligible for grants under the diesel conversion program, not just municipal buses. Applicants must meet all eligibility requirements except for the motor carrier financial responsibility requirement.
12. Adjusts the transfers and apportionment from the ACAF.
13. Specifies that if $11.7 million is not available in either FY 2001-2001 or FY 2002-2003, the monies apportioned within the ACAF for heavy-duty diesel grants and refueling station grants will be reduced proportionately.
14. Prohibits the Department of Commerce from transferring $2 million dollars obtained by the state from legal settlements involving insolvent domestic insurers into the ACAF.
15. Makes technical and conforming changes.
ENV 2/27/01 DPA 10-0-0-0 NRAE 4/5/01 DPA 8-0-0-0
APPROP 3/6/01 DP 13-0-0-3 APPROP 4/18/01 DPA 11-1-0-0
3rd Read 3/22/01 48-6-6-0 3rd Read 4/27/01 24-5-1-0
Prepared by Senate Staff
May 1, 2001