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Honorable Mayor and Members of the City Council: <br /> <br />BACKGROUND <br /> <br />In 1998, the California Air Resource Board (CARB) declared diesel Particulate Matter (PM) a <br />toxic air contaminant. Following that finding, CARB embarked on a process of developing <br />regulations to reduce the exposure of California's residents to these emissions. In September <br />2003, CARB adopted the first diesel PM regulation affecting privately owned diesel vehicles. <br />The regulation requires SWCVs to reduce diesel particulates emissions and was chartered into <br />law in July 2004. One consideration is that this regulation helps to reduce one harmful emission <br />from diesel engines, but it does not have any requirements to reduce Oxides of Nitrogen (NOx), <br />another harmful emission. This emission is a colorless and odorless gas that is one of the <br />primary components of ozone. Should Bay Area haulers meet only the minimum requirements <br />of the regulation, there will be no NOx reductions resulting from the efforts of retrofitting the in- <br />service vehicles. <br /> <br />The Bay Area has met federal attainment for ozone, yet is still above the maximum allowable <br />state standard. In addition, the Bay Area is cooperating with the California Air Resources Board, <br />representatives from the Sacramento Federal Ozone Non-Attainment Area, and the San Joaquin <br />Valley to reduce the levels of both NOx and ozone that are transported to the east into the Valley <br />by prevailing winds. <br /> <br />Refuse companies can choose from a range of strategies to bring their in-use vehicles into <br />compliance with the regulation. Refuse fleets choosing to achieve the highest level of both NOx <br />and PM reductions will need to spend approximately $19,000 per truck. The portion of this cost <br />that is allocated to reducing NOx emissions is approximately $10,000 to $12,000. Refuse fleets <br />may also be able to achieve a portion of their compliance by retiring older vehicles and <br />purchasing new natural gas SWCVs if the engines are certified to an optional low-emission <br />standard. <br /> <br />DISCUSSION <br /> <br />Significant NOx reduction can occur if the refuse tracks in the Bay Area choose to comply with <br />the regulation using technologies that reduce both NOx and PM. However, due to the limitation <br />of the regulation as well as funding availability, fleet operators may not choose the more <br />expensive technologies. In recognition of the substantial costs associated with the additional <br />retrofit, the Bay Area Air Management District (BAAQMD) has created a $1.5 million fund to <br />help refuse fleet operators offset the additional cost of using a technology that reduces both PM <br />and NOx. <br /> <br />Any public agency that operates its own fleet of refuse collection vehicles or that has a contract <br />with a private refuse collection fleet may apply to the BAAQMD for funds to offset the cost of <br />NOx control technology. Public agencies may apply directly, or they may apply on behalf of <br />private companies that are providing an essential public service (refuse collection has been <br /> <br />SR:05:022 <br /> <br /> <br />