WHEREAS the U.S. Environmental Protection Agency (USEPA) has promulgated a new National Ambient Air Quality Standard (“NAAQS”) for ozone with an 8-hour averaging time of 0.08 parts per million, has revoked the 1-hour primary standard, and has determined that the 8-hour

standard is necessary in order to protect public health (Federal Register, Vol. 62, No. 138, pages 2- 37 (July 18, 1997); and

WHEREAS the Sacramento Metropolitan Area (“SMA”), includes the Sacramento

Metropolitan Air Quality Management District (“District”) as well as the Yolo-Solano Air Quality Management District, and parts of the Placer County Air Pollution Control District, the El Dorado County Air Quality Management District, and the Feather River Air Quality Management District (Federal Register, Vol. 69, No. 84, pages 23858-23951 (April 30, 2004)); and

WHEREAS the SMA exceeds the primary NAAQS for 8-hour ozone, and has been designated nonattainment for ozone with a classification of “Serious” (Federal Register, Vol. 69, No. 84, pages 23858-23951); and

WHEREAS the USEPA recently published its Final Rule for the implementation of the 8- hour Ozone National Ambient Air Quality Standard, which requires nonattainment areas classified

“Serious” to demonstrate reasonable further progress toward attainment ofthe new 8-hour standard

(Federal Register, Vol. 70, No. 228, pages 71611-71705 (November 29, 2005)); and

WHEREAS the SMA Districts have prepared the proposed Sacramento Regional Nonattainment Area 8-Hour Ozone Rate-of-Progress Plan (8-Hour ROP) to satisfy the reasonable further progress requirement; and

WHEREAS the proposed 8-Hour ROP demonstrates that existing control strategies and approved control measure commitments will provide the future emission reductions necessary to meet the federal Clean Air Act requirements for reasonable further progress for the period 2002- 2008; and

WHEREAS photochemical modeling has concluded that the most feasible ozone

attainment strategy must include reductions of both volatile organic compound and nitrogen oxide emissions and that nitrogen oxide reductions would be more beneficial than VOC reductions in

reducing peak ozone in downwind areas; and

WHEREAS the substitution of nitrogen oxide emission reductions in place of volatile organic compound emission reductions to meet reasonable further progress requirements is consistent with Federal Clean Air Act Section 1 82(c)(2)(C), and with previous and current analyses of ozone attainment strategies in the SMA; and
WhEREAS in connection with the foregoing, the Sacramento Metropolitan Air Quality Management District, as lead agency, in consultation with El Dorado Air Quality Management District, Feather River Air Quality Management District, Placer County Air Pollution Control

District and Yolo-Solano Air Quality Management District, as responsible agencies, duly prepared a Draft Environmental Impact Report (“DEIR”), dated September, 2005, State Clearinghouse No. 2004042112, to consider potential environmental impacts arising from the proposed 8-Hour ROP;

and

WHEREAS the Sacramento Metropolitan Air Quality Management District published notice of the availability of the DEIR and held a noticed public workshop on October 24, 2005 to

receive public comment on the DEER and the proposed 8-Hour ROP; and

WhEREAS minor revisions to the ROP and DEIR were made to amplify and clarify the

analysis contained in those documents and to add new information to the ER regarding the final

mitigation measures; and

WHEREAS the information added to the ER did not identify a new significant impact related to the project or mitigation measures or increase in the severity of a previously identified

impact, nor did it identify a feasible project alternative not analyzed in the draft ER.

WhEREAS Comments and Responses to the DEIR, including the list of persons, organizations and public agencies commenting on the DEER, have been prepared as Appendix D thereto, and together with the revised DEER comprise a Final Environmental Impact Report, completed in full compliance with all procedural and substantive provisions of the California

Environmental Quality Act; and

WhEREAS the Board of Directors of the Sacramento Metropolitan Air Quality

Management District held a noticed public hearing and considered public comment on the proposed

8-Hour ROP at its January 26, 2006 meeting; and

WHEREAS the Board of Directors of the District certifies that the Final Environmental

Impact Report has been completed in compliance with the California Environmental Quality Act,

that the Board of Directors ofthe District has reviewed and considered the information contained in

the Final Environmental Impact Report and that the Final Environmental Impact Report reflects

their independent judgment.

WHEREAS the Board of Directors of the Sacramento Metropolitan Air Quality

Management District finds that Final Environmental Impact Report identifies potentially significant
significant environmental effects identified in the Final Environmental Impact Report. Those mitigations consist of the implementation of the Vehicle and Engine Technology Market Based Incentive Program by SMAQMD and mitigate the potentially significant adverse air quality impacts to insignificant levels; and

WHEREAS the Board of Directors of the Sacramento Metropolitan Air Quality Management District finds that there are no additional feasible mitigation measures or project alternatives other than those already included in the Final EIR; and

WHEREAS $19.2 million in funding has been secured for the Vehicle and Engine Technology Market Based Incentive Program; and

WhEREAS the District has prepared a Mitigation Monitoring Program, which requires the District staffto prepare and submit to the Board an annual report on implementation ofthe Vehicle and Engine Technology Market Based Incentive Program until the measure is fully implemented.

WHEREAS staff of the Sacramento Metropolitan Air Quality Management District, at 777 12th Street, Sacramento maintain the record ofthe proceedings upon which this decision is based.

NOW, THEREFORE, BE IT RESOLVED that Board of Directors fmds that changes or alteration in the project have been required that avoid or substantially lessen the significant environmental effects identified in the final EIR, because the Vehicle and Engine Technology Market Based Incentive Program to be implemented by the District provides adequate emission reductions to reduce the project emissions to less than significant levels;

BE IT FURTHER RESOLVED that the Board of Directors approves the Mitigation Monitoring Program attached as Attachment 6 to the Januaiy 26, 2006 Board letter for the ROP and

EIR; and

BE IT FURTHER RESOLVED that the Board of Directors of the Sacramento

Metropolitan Air Quality Management District certifies that the Final Environmental Impact Report prepared for the proposed Sacramento Regional Nonattainment Area 8-Hour Ozone Rate-ofProgress Plan is adequate; and

BE IT FURTHER RESOLVED that the Board of Directors of the Sacramento

Metropolitan Air Quality Management District approves the proposed Sacramento Regional Nonattainment Area 8-Hour Ozone Rate-of-Progress Plan, approves the 2002 Baseline Inventory contained in the proposed Sacramento Regional Nonattainment Area 8-Hour Ozone Rate-ofProgress Plan, approves the proposed update to the Motor Vehicle Emissions Budgets that the Sacramento Area Council of Governments must use for federal transportation conformity purposes,
Nonattainment Area 8-Hour Ozone Rate-of-Progress Plan and all necessary supporting documents

to the California Air Resources Board for submittal to the U.S. Environmental Protection Agency as

a revision to the State Implementation Plan.

BE iT FINALLY RESOLVED that the Board of Directors of the Sacramento

Metropolitan Air Quality Management District adopts the Vehicle and Engine Technology Market

Based Incentive Program to mitigate significant adverse air quality impacts and directs staff to

report back to the Board of Directors annually on the progress of the mitigation measures until the

measures are fully implemented.

ON A MOTION by Director Starsky , seconded by Director Collin , the foregoing

Resolution was passed and adopted by the Board of Directors of the Sacramento Metropolitan Air

Quality Management District, State ofCalifornia, this 26th , of January , 2006

by the following vote, to wit:

AYES: Directors, Briggs, Cohn, Collin, Dickinson, Hammond, Karpinski—Costa, MacGlashan, McCarty, McGarvey, Nottoli, Starsky

NOES: Directors,

ABSENT: Directors, Clare, Peters, Sheedy

ATTEST:

C rk the Board

Sacramento Metropolitan Air Quality

Management District

State ofCalifornia

Air Quality Management District