Statement of the Air and Radiation Management Administration Department of the Environment for the Public Hearing Relating to Proposed Amendments to Regulation .02 under COMAR 26.11.34 related to Low Emissions Vehicle Program held on January 03, 2013 Baltimore, MD My name is Justin Mabrey. I am an engineer in the Mobile Sources Control Program of the Air and Radiation Management Administration, Department of the Environment. This public hearing is being held pursuant to the requirements of 40 CFR Section 51.102 and Sections 2-301 et.seq. of the Environment Artic le, Annotated Code of Maryland. It is also being held in conformance with the State Administrative Procedures Act under the State Government Article, beginning at Section 10-101. Notice of this hearing appeared in the: Maryland Register on November 30, 2012; MDE's website from November 16, 2012 to January 03, 2013; Baltimore Sun on November 30, 2012; Saint Mary's Enterprise on November 30, 2012; Frederick News-Post on November 30, 2012; Cecil Whig on November 30, 2012; Salisbury Daily Times on November 30, 2012; and the Washington Post on November 29, 2012. Copies of these notices were submitted for the record. Copies of the proposed amendments and supporting documents were made available to the State Clearinghouse and are also submitted at this time into the hearing record. Copies of the proposed amendments and supporting documents were made available for public inspection at the Air and Radiation Management Administration offices in Baltimore, Cumberland, and Salisbury, and at all local health departments or local air quality control offices. The purpose of today's hearing is to give the public an opportunity to comment on the proposed amendments to Regulation .02 under COMAR 26.11.34. Summary This proposed action is the administrative action necessary for Maryland’s program to remain consistent with the California program as required by Section 177 of the Clean Air Act. The Maryland Clean Cars Act of 2007 required the Maryland Department of the Environment (MDE) to adopt regulations implementing the California Clean Car Program. The

1MDE’s 2007 implementing regulations adopted the applicable California regulations through incorporation by reference. The California program is a dynamic, changing program. This proposed action updates the Maryland regulations with changes that have occurred to the California program since they were last updated in 2011. This proposed action adopts the new Cal LEV III amendments, also known as the Advanced Clean Cars Program. The Cal LEV III amendments include proposed changes to the LEV II, Greenhouse Gas (GHG), and Zero Emission Vehicle (ZEV) standards. Summary of Proposed Changes The individual regulatory changes to the California regulations can be grouped into the following major areas:

• Low Emission Vehicle (LEV) III Standards. • Zero Emission Vehicle (ZEV) Program • Greenhouse Gas Emission Standards Economic Impact There is an economic impact associated with these regulations. Due to the emissions control technology required to meet these emissions standards, when fully implemented, California has estimated that the average new vehicle purchase costs will increase by about $1,900. However, these increased purchase costs are expected to be offset by reduced operating costs, ultimately resulting in a net savings of up to $4,000 over the lifetime of the vehicles. While other cost estimates for the program may be higher, they do not alter the fundamental cost effectiveness of the program and consumers will see benefits within the expected average lifetime of the vehicle. Emissions Benefits The Advanced Clean Car Program will reduce emissions of GHG, NOx, VOCs, and air toxics (benzene, 1,3-butadiene and acetaldehyde). Greenhouse gases are the primary pollutants that cause global warming. Maryland, and the Chesapeake Bay, are particularly vulnerable to the affects of global warming. Major concerns include a rise in coastal waters, loss of aquatic life (impacts to oysters, crabs and the bay ecosystem) and the potential of extreme weather conditions. GHG emissions contribute significantly to global warming. In Maryland, about one third of the GHG emissions come from motor vehicles. The Clean Car Program will reduce GHG emissions from motor vehicles and is absolutely critical as part of our effort to address global warming. Maryland’s challenges to meeting the federal health standards for ozone and fine particles are amongst the toughest in the country. Much of Maryland still remains in ozone nonattainment, even after implementation of many federal and state programs that are reducing motor vehicle emissions. In addition to being a major contributor to the State’s ozone and fine particulate pollution, NOx emissions also adversely impact the Chesapeake Bay. The VOC and NOx

23 reductions from the Clean Cars Program will be very important to our efforts to attain and maintain these standards. Mobile sources are the number one contributor to air toxics in major cities like Baltimore and Washington. Air toxics emissions can have a vari ety of negative effects on public health. While existing programs are gradually reducing exposure to these pollutants, the deeper and quicker reductions under the Clean Car Program will bring healthier air to Maryland’s citizens sooner. California estimates that the full emissions benefits of the Advanced Clean Cars Program will be realized in the 2035-2040 timeframe, when nearly all vehicles operating in the fleet would be compliant with the new standards. By 2035, California estimates emissions for volatile organic compounds (VOCs) would be reduced by an additional 21% from the 2008 baseline, NOx emissions would be reduced by an additional 36%, and PM2.5 emissions by an additional 11%. Greenhouse gas emissions are estimated to be reduced by an additional 3% by 2020, increasing to 27% by 2035. Maryland’s State Implementation Plan (SIP) These amendments will be submitted to the EPA as a revision to Maryland’s State Implementation Plan. Consideration of Comments The Department will consider all comments on the amendments before making a decision to adopt these amendments.1

1 MARYLAND DEPARTMENT OF THE ENVIRONMENT 2 AIR AND RADIATION MANAGEMENT ADMINISTRATION 3 4 5 PUBLIC HEARING 6 CONCERNING PROPOSED AMENDMENTS TO COMAR 26.11.34.02 7 MD LEV PROGRAM - UPDATE 8 9 10 The hearing in the above matter commenced on 11 Thursday, January 3, 2013, at the MDE Headquarters, 12 Montgomery Park, 1800 Washington Boulevard, Baltimore, 13 Maryland. 14 15 BEFORE: DEBORAH RABIN, Hearing Officer 16 17 Reported by: Linda Metcalf 18 19 20 21

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1 A P P E A R A N C E S 2 3 ON BEHALF OF THE MARYLAND DEPARTMENT OF THE ENVIRONMENT: 4 5 DEBORAH RABIN 6 Regulations Coordinator 7 Regulation Development Division 8 Air and Radiation Management 9 Maryland Department of the Environment 10 1800 Washington Boulevard, Suite 730 11 Baltimore, Maryland 21230 12 13 JUSTIN MABREY 14 Engineer 15 Mobile Sources Control Program 16 Air and Radiation Management Administration 17 Maryland Department of the Environment 18 1800 Washington Boulevard, Suite 730 19 Baltimore, Maryland 21230 20 21

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1 I N D E X 2 3 Speaker: Page: 4 Opening Remarks, Deborah Rabin, MDE 4 5 Hearing Statement, Justin Mabrey, MDE 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

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1 P R O C E E D I N G S 2 - - - - - 3 MS. RABIN: Good morning. On behalf of the 4 Department of the Environment and the Air and Radiation 5 Management Administration, I would like to welcome you to 6 this public hearing. 7 My name is Deborah Rabin and I am the 8 Regulations Coordinator for the Air and Radiation 9 Management Administration. I will serve as hearing 10 officer for today's hearing. 11 I would like to ask all of you in attendance 12 today to please sign in, if you haven't already done so. 13 This will help us to keep an accurate record of the 14 people who participate in the hearing. Also, copies of 15 our regulation proposal, support documents, and the 16 Department's statement are available on the table for 17 your information. 18 This hearing concerns Air Quality Regulations 19 found in the Code of Maryland Regulations, Title 26, 20 Subtitle 11, Air Quality. The Secretary of the 21 Department proposes to amend Regulation .02 under COMAR

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1 26.11.34, Low Emissions Vehicle Program. 2 The purpose of this hearing is to give you the 3 opportunity to comment on this action. 4 The Opportunity for Public Comment for this 5 proposed action appeared in the Maryland Register, Volume 6 39, Issue 24, Page 1589 on November 30, 2012. 7 The hearing will proceed in the following 8 order. First, Mr. Justin Mabrey will make a statement on 9 behalf of the Air and Radiation Management 10 Administration. After Mr. Mabrey is finished, I will 11 call on any elected official or government official who 12 wants to make a statement. Then, I will call upon anyone 13 else who indicated on the sign-in sheet that he or she 14 would like to make a statement. 15 When giving your statement, please identify 16 yourself and your affiliation, and give your statement 17 loudly and clearly. Are there any questions? 18 I will now call on Mr. Mabrey. 19 MR. MABREY: My name is Justin Mabrey. I am an 20 engineer in the Mobile Sources Control Program of the Air 21 and Radiation Management Administration, Department of

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1 the Environment. Since no one has attended this hearing, 2 I am submitting my statement for the record. 3 4 Statement of the Air and Radiation Management 5 Administration 6 Department of the Environment 7 for the Public Hearing Relating to 8 Proposed Amendments to Regulation .02 under COMAR 9 26.11.34 related to 10 Low Emissions Vehicle Program 11 held on January 03, 2013 12 Baltimore, MD 13 My name is Justin Mabrey. I am an engineer in 14 the Mobile Sources Control Program of the Air and 15 Radiation Management Administration, Department of the 16 Environment. 17 This public hearing is being held pursuant to 18 the requirements of 40 CFR Section 51.102 and Sections 2- 19 301 et. seq. of the Environment Article, Annotated Code 20 of Maryland. It is also being held in conformance with 21 the State Administrative Procedures Act under the State

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1 Government Article, beginning at Section 10-101. 2 Notice of this hearing appeared in the: 3 Maryland Register on November 30, 2012; MDE's website 4 from November 16, 2012 to January 03, 2013; Baltimore Sun 5 on November 30, 2012; Saint Mary's Enterprise on November 6 30, 2012; Frederick News-Post on November 30, 2012; Cecil 7 Whig on November 30, 2012; Salisbury Daily Times on 8 November 30, 2012; and the Washington Post on November 9 29, 2012. 10 Copies of these notices were submitted for the 11 record. 12 Copies of the proposed amendments and 13 supporting documents were made available to the State 14 Clearinghouse and are also submitted at this time into 15 the hearing record. Copies of the proposed amendments 16 and supporting documents were made available for public 17 inspection at the Air and Radiation Management 18 Administration offices in Baltimore, Cumberland, and 19 Salisbury, and at all local health departments or local 20 air quality control offices. 21 The purpose of today's hearing is to give the

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1 public an opportunity to comment on the proposed 2 amendments to Regulation .02 under COMAR 26.11.34. 3 Summary 4 This proposed action is the administrative 5 action necessary for Maryland’s program to remain 6 consistent with the California program as required by 7 Section 177 of the Clean Air Act. 8 The Maryland Clean Cars Act of 2007 required 9 the Maryland Department of the Environment (MDE) to adopt 10 regulations implementing the California Clean Car 11 Program. The MDE’s 2007 implementing regulations adopted 12 the applicable California regulations through 13 incorporation by reference. The California program is a 14 dynamic, changing program. This proposed action updates 15 the Maryland regulations with changes that have occurred 16 to the California program since they were last updated in 17 2011. 18 This proposed action adopts the new Cal LEV III 19 amendments, also known as the Advanced Clean Cars 20 Program. The Cal LEV III amendments include proposed 21 changes to the LEV II, Greenhouse Gas (GHG), and Zero

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1 Emission Vehicle (ZEV) standards. 2 Summary of Proposed Changes 3 The individual regulatory changes to the 4 California regulations can be grouped into the following 5 major areas: 6

- Low Emission Vehicle (LEV) III Standards 7

- Zero Emission Vehicle (ZEV) Program 8

- Greenhouse Gas Emission Standards 9 Economic Impact 10 There is an economic impact associated with 11 these regulations. Due to the emissions control 12 technology required to meet these emissions standards, 13 when fully implemented, California has estimated that the 14 average new vehicle purchase costs will increase by about 15 $1,900. However, these increased purchase costs are 16 expected to be offset by reduced operating costs, 17 ultimately resulting in a net savings of up to $4,000 18 over the lifetime of the vehicles. While other cost 19 estimates for the program may be higher, they do not 20 alter the fundamental cost effectiveness of the program 21 and consumers will see benefits within the expected

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1 average lifetime of the vehicle. 2 Emissions Benefits 3 The Advanced Clean Car Program will reduce 4 emissions of GHG, NOx, VOCs, and air toxics (benzene, 5 1,3-butadiene and acetaldehyde). Greenhouse gases are 6 the primary pollutants that cause global warming. 7 Maryland, and the Chesapeake Bay, are particularly 8 vulnerable to the affects of global warming. Major 9 concerns include a rise in coastal waters, loss of 10 aquatic life (impacts to oysters, crabs and the bay 11 ecosystem) and the potential of extreme weather 12 conditions. GHG emissions contribute significantly to 13 global warming. In Maryland, about one third of the GHG 14 emissions come from motor vehicles. The Clean Car 15 Program will reduce GHG emissions from motor vehicles and 16 is absolutely critical as part of our effort to address 17 global warming. 18 Maryland’s challenges to meeting the federal 19 health standards for ozone and fine particles are amongst 20 the toughest in the country. Much of Maryland still 21 remains in ozone nonattainment, even after implementation

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1 of many federal and state programs that are reducing 2 motor vehicle emissions. In addition to being a major 3 contributor to the State’s ozone and fine particulate 4 pollution, NOx emissions also adversely impact the 5 Chesapeake Bay. The VOC and NOx reductions from the 6 Clean Cars Program will be very important to our efforts 7 to attain and maintain these standards. 8 Mobile sources are the number one contributor 9 to air toxics in major cities like Baltimore and 10 Washington. Air toxics emissions can have a variety of 11 negative effects on public health. While existing 12 programs are gradually reducing exposure to these 13 pollutants, the deeper and quicker reductions under the 14 Clean Car Program will bring healthier air to Maryland’s 15 citizens sooner. 16 California estimates that the full emissions 17 benefits of the Advanced Clean Cars Program will be 18 realized in the 2035-2040 timeframe, when nearly all 19 vehicles operating in the fleet would be compliant with 20 the new standards. By 2035, California estimates 21 emissions for volatile organic compounds (VOCs) would be

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1 reduced by an additional 21% from the 2008 baseline, NOx 2 emissions would be reduced by an additional 36%, and 3 PM2.5 emissions by an additional 11%. Greenhouse gas 4 emissions are estimated to be reduced by an additional 3% 5 by 2020, increasing to 27% by 2035. 6 Maryland’s State Implementation Plan (SIP) 7 These amendments will be submitted to the EPA 8 as a revision to Maryland’s State Implementation Plan. 9 Consideration of Comments 10 The Department will consider all comments on 11 the amendments before making a decision to adopt these 12 amendments. 13 14 MS. RABIN: Please let the record reflect that 15 no one has come to attend this public hearing. 16 This will conclude the public hearing regarding 17 proposed amendments to Regulation .02 under COMAR 18 26.11.34, Low Emissions Vehicle Program. 19 Let the record reflect that it i s now 10:28 and 20 this hearing is officially concluded. 21 (Whereupon, the hearing was concluded)

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1 CERTIFICATE OF COURT REPORTER 2 3 I, Linda Metcalf, do hereby certify that the 4 foregoing transcription was reduced to typewriting via 5 audiotapes recorded by me; that I am neither counsel for, 6 nor related to, nor employed by any of the parties to the 7 case in which these proceedings were transcribed; that I 8 am not a relative or employee of any attorney or counsel 9 employed by the parties hereto, nor financially or 10 otherwise interested in the outcome of the action. 11 12 13 14 15 16 LINDA METCALF 17 Court Reporter 18 19 20 21

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