MEETING

STATE OF CALIFORNIA

AIR RESOURCES BOARD

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

AUDITORIUM

21865 E. COPLEY DRIVE

DIAMOND BAR, CALIFORNIA 91765

FRIDAY, OCTOBER 24, 2014

8:29 A.M.

TIFFANY C. KRAFT, CSR

CERTIFIED SHORTHAND REPORTER

LICENSE NUMBER 12277

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APPEARANCES

BOARD MEMBERS

Ms. Mary Nichols, Chairperson

Ms. Sandy Berg

Mr. Hector De La Torre

Mr. John Eisenhut

Supervisor John Gioia

Mayor Judy Mitchell

Mrs. Barbara Riordan

Supervisor Phil Serna

Professor Daniel Sperling

Dr. Allen Sherrifs

STAFF

Mr. Richard Corey, Executive Director

Dr. Alberto Ayala, Deputy Executive Officer

Ms. Edie Chang, Deputy Executive Officer

Ms. Lynn Terry, Deputy Executive Officer

Ms. Ellen Peter, Chief Counsel

Ms. La Ronda Bowen, Ombudsman

Ms. Kim Heroy-Rogalski, Manager, Strategic Planning and 

Development Section, MSCD

Ms. Terry Roberts, Manager, Sustainable Communities Policy 

and Planning Section, AQPS

Mr. Todd Sax, Assistant Division Chief, MSCD

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APPEARANCES (CONTINUED)

ALSO PRESENT

Ms. Heather Adamson, AMBAG

Ms. Christine Barker, Fresno Metro Ministry

Mr Fernando Cazares, NRDC

Mr. Andrew T. Chelsey, San Joaquin COG

Mr. Cary Drake, US EPA

Mr. Ahron Hakimi, Kern COG 

Mr. Bill Higgins, CALGOG

Ms. Bonnie Holmes-Gen, American Lung Association of 

California

Mr. Hasan Ikhrata, SCAG

Ms. Rebecca Long, Metropolitan Transportation Commission

Mr. Joe Lyon, Coalition for Clean Air

Mr. Mike McKeever, Sacramento Area COG

Mr. Matt Miyasato, South Coast Air District

Mr. Jaime Moncayo, Leadership Counsel for Justice & 

Accountability

Mr. Richard Raya, Climate Plan

Mr. Charles Stoll, SANDA

Ms. Carol Sutkus, Manager, South Coast AQMP Section, AQPS

Mr. John Wall, Cummins

 

Mr. Carlos Yamzon, Stanislaus COG

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INDEX

PAGE

Item 14-8-7

Chairperson Nichols 3

Motion 3

Vote 3

Item 14-8-8

Chairperson Nichols 3

Motion 3

Vote 3

Item 14-8-9

Chairperson Nichols 4

Executive Officer Corey 4

Staff Presentation 6

Mr. Miyasota 29

Mr. Wall 31

Ms. Holmes-Gen 35

Item 14-8-10

Chairperson Nichols 45

Executive Officer Corey 46

Staff Presentation 46

Mr. Drake 51

Motion 53

Vote 53

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INDEX CONTINUED

PAGE

Item 14-8-11

Chairperson Nichols 55

Executive Officer Corey 55

Staff Presentation 57

Mr. McKeever 71

Mr. Hakimi 77

Mr. Chelsey 80

Mr. Stoll 82

Ms. Long 84

Ms. Adamson 87

Mr. Ikhrata 88

Mr. Yamzon 90

Mr. Higgins 92

Ms. Holmes-Gen 96

Mr. Lyon 99

Mr. Raya 100

Mr. Cazares 102

Mr. Moncayo 104

Ms. Barker 106

Mr. Imhof 108

Board Discussion 109

 

Reporter's Certificate 128

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PROCEEDINGS

CHAIRPERSON NICHOLS: Good morning, everybody. 

Welcome back to the Air Resources Board October meeting. 

There is the second day of our two-day meeting here in 

Diamond Bar. 

We will start this morning with the Pledge of 

Allegiance. 

(Whereupon the Pledge of Allegiance was

Recited in unison.)

CHAIRPERSON NICHOLS: Madam Clerk, would you 

please call the roll? 

BOARD CLERK JENSEN: Mr. Balmes? 

Mr. Berg? 

Mr. De La Torre? 

Mr. Eisenhut? 

BOARD MEMBER EISENHUT: Here. 

BOARD CLERK JENSEN: Supervisor Gioia? 

BOARD MEMBER GIOIA: Here. 

BOARD CLERK JENSEN: Mayor Mitchell? 

Mrs. Riordan? 

BOARD MEMBER RIORDAN: Here. 

BOARD CLERK JENSEN: Supervisor Roberts? 

Supervisor Serna? 

BOARD MEMBER SERNA: Here. 

BOARD CLERK JENSEN: Dr. Sherriffs? 

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BOARD MEMBER SHERRIFFS: Here. 

BOARD CLERK JENSEN: Professor Sperling? 

BOARD MEMBER SPERLING: Here. 

BOARD CLERK JENSEN: Chairman Nichols? 

CHAIRPERSON NICHOLS: Here. 

BOARD CLERK JENSEN: Chairman Nichols, we have a 

quorum. 

CHAIRPERSON NICHOLS: Great. Our first two items 

are consent items, but I'll take them up separately. I 

guess before I do that, I should make the routine 

announcement that anyone who wants to speak, if you're not 

familiar with our procedures, should please check in with 

the Clerk so she can get your name on the LIST prior to 

the commencement of the item. And we will be imposing a 

three-minute time limit on oral testimony. 

Also, please observe the emergency exits that are 

in the rear of the room. In the event of a fire alarm, we 

need to evacuate this room. 

The first item on our agenda, which is a consent 

item, is a public meeting to consider minor updates to the 

1997 8-hour ozone standard State Implementation Plans for 

Coachella Valley and the Western Mohave Desert ozone 

non-attainment areas. 

Is there anyone who signed up to speak on this 

item? 

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BOARD CLERK JENSEN: No. 

CHAIRPERSON NICHOLS: Does any Board member wish 

to take it off the consent calendar? If not -- 

BOARD MEMBER RIORDAN: Madam Chairman, staff has 

briefed me, and I want to thank them for working with us 

and I would move Resolution 14-29. 

BOARD MEMBER SHERRIFFS: Second. 

CHAIRPERSON NICHOLS: All in favor, please say 

Aye. 

(Unanimous aye vote.) 

CHAIRPERSON NICHOLS: Any opposed? 

Any abstentions? Great. 

The second item is a public meeting to consider 

the supplemental document for the San Joaquin Valley 

24-hour PM2.5 State Implementation Plan. And again, we 

have no witnesses who signed up to testify. No Board 

member who wishes to take it off consent. Very good. 

Then I will appreciate a motion to approve. 

BOARD MEMBER SHERRIFFS: Motion to approve. 

CHAIRPERSON NICHOLS: Very good. Second?

BOARD MEMBER EISENHUT: Second. 

CHAIRPERSON NICHOLS: All in favor say aye. 

(Unanimous aye vote.) 

CHAIRPERSON NICHOLS: Opposed? 

Carried. 

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Now we will begin a report on reductions achieved 

from incentive-based emission reduction measures, update 

on the Board's California heavy-duty truck program which 

is the Board's program, past, present, and future. 

Mr. Corey, this goes to you. 

The purpose of this report here is to update the 

Board on our current plans to develop the next phase of 

heavy-duty greenhouse gas emission standards which we're 

working on in collaboration with our two federal partners. 

And this is an interesting program, of course, because 

California has its own very robust heavy-duty program, 

which is already providing significant emissions 

reductions from trucks and buses. But these have been 

essentially vehicles which operate in the interstate 

commerce situation. So we have always the desire and the 

need to have cooperation with the federal government as 

well. 

Staff's presentation is going to provide an 

historical overview as well as describe our current 

heavy-duty programs and then preview our efforts to 

strengthen these programs. 

So Mr. Corey, would you please begin? 

DEPUTY EXECUTIVE OFFICER COREY: Yes, thank you, 

Chairman. 

The informational presentation will provide an 

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overview of nearly of component of ARB's program for 

controlling emissions from heavy-duty engines and vehicles 

from the time they're certified for sale until they're 

ultimately retired, which makes over million miles of 

operation for certain vehicles. 

Staff will also describe how ARB's program work 

together to reduce the emissions from heavy-duty engines 

in vehicles, including new engine certification standards, 

durability emissions warrantee, and on-board diagnostics 

system requirements, roadside and fleet inspection 

programs, and in-use rules designed to accelerate the 

fleet updates. 

The presentation falls on the heals of workshops 

that staff conducted this past September regarding 

developments in advanced zero and near-zero emission 

technology for heavy-duty emissions in vehicles may 

significantly assist California in attaining its future 

air quality and climate goals. The culmination of these 

technology assessments will be released shortly and serve 

as the foundation for the sustainable freight strategy 

that staff will discuss with you all at the December Board 

meeting. 

So presentation also sets the stage for the 

developments of the upcoming state implementation 

strategies necessary to attain federal air quality 

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standards in the South Coast and San Joaquin Valley area 

basin as well as future more stringent greenhouse gas and 

NOx standards for heavy-duty engines and vehicles. 

Kim Heroy-Rogalski of the Mobile Source Control 

Division will now give the staff presentation. Kim. 

(Thereupon an overhead presentation was 

presented as follows.)

MANAGER HEROY-ROGALSKI: Thank you, Mr. Corey. 

And good morning, Chairman Nichols and members of the 

Board. 

As you know, the ARB has in place a successful 

comprehensive program that significantly reduces criteria 

pollutants and greenhouse gas emissions from new and 

existing heavy-duty trucks. 

Today's informational presentation is to update 

you on our current heavy-duty vehicle program and discuss 

staff's recent evaluation of the program and areas 

identified for improvement. 

--o0o--

MANAGER HEROY-ROGALSKI: Here's an outline of my 

presentation. After a short introduction, I'll provide an 

overview of ARB's current heavy-duty truck program, 

including both new engine standards and in-use 

requirements. 

Next, I'll discuss staff's recent evaluation of 

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the program and some opportunities we've identified to 

improve several program areas. 

Then I'll talk about ongoing development of 

federal Phase 2 greenhouse gas emissions standards for 

medium- and heavy-duty trucks. This future rulemaking is 

the transportation centerpiece in President Obama's 

Climate Action Plan. 

Finally, I'll mention our efforts to encourage 

greater use of near- and near-zero emission of heavy-duty 

vehicles. Such vehicles will be crucial for California to 

attain federal ozone standards and meet our climate change 

goals. 

So first let's turn to the introduction.

--o0o--

MANAGER HEROY-ROGALSKI: Different thresholds are 

used for what's considered heavy duty. Sometimes 8500 

pounds gross vehicle weight is used as the cut off and 

sometimes 14,000 pounds. But no matter how you define it, 

there are many heavy-duty trucks on the road in California 

and they contribute significantly to air pollution. 

There are about two million trucks operating in 

California, over 8500 pounds gross vehicle weight, and 

nearly one million of those are over 14,000 pounds. 

The trucks range from Class IIB3, essentially 

large pick-up trucks and vans, like the white pickup shown 

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in the lower photo, to class eight long haul 

tractor-trailer trucks like shown in the top photo. 

Heavy-duty trucks overall are predominantly 

diesel powered, although gasoline is used in a sizable 

fraction for the smaller trucks. Although the population 

is greatest for the smallest trucks, the 2B3s, the 

emissions are dominated by class eight trucks, which have 

the largest engines and travel the most miles.

--o0o--

MANAGER HEROY-ROGALSKI: Heavy-duty trucks over 

8500 pounds are responsible for a third of the state's 

total NOx emissions and over a quarter of the diesel 

particulate matter. They also emit a fifth of the total 

greenhouse gas emissions associated with transportation 

sources, which is about eight percent of the statewide 

total. This's why our truck programs are so important. 

Without controlling this significant source, we can't 

expect to make progress overall.

--o0o--

MANAGER HEROY-ROGALSKI: As I mentioned on the 

previous slide, heavy-duty trucks are responsible for a 

third of the state's total NOx emissions. NOx is a key 

ingredient in ozone pollution. So if we're going to 

attain ozone standards, further NOx control is critical. 

This is true in California today and may be true in many 

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more parts of the nation in the future. 

Many of these areas are in states with air 

quality representatives in the audience here today. The 

left map on the slide shows designations for the federal 

ozone standard. You'll see that for today's federal 

8-hour ozone standard, 75 parts per billion, California 

has a near unique air quality challenge. Only California 

has areas classified as serious or extreme. See the red 

and yellow portions all clustered in California. 

The right map shows a different story. U.S. EPA 

is currently in the process of reviewing the ambient ozone 

standard. It is considering levels between 60 and 70 PPB 

and action is expected later this year. 

As you can see, many additional areas in the 

country will likely be newly designated as non-attainment, 

and existing non-attainment areas will have further to go 

to meet a more stringent standard. The turquoise, yellow, 

and orange dots on the right map indicate potential new 

ozone non-attainment areas.

--o0o--

MANAGER HEROY-ROGALSKI: Now I'll provide a brief 

overview of California's current heavy-duty engine and 

vehicle program.

--o0o--

MANAGER HEROY-ROGALSKI: The ARB has a long 

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history of establishing increasingly stringent emission 

standards for criteria pollutants from new engines in 

heavy-duty vehicles. 

Over the past 20 years, ARB has reduced NOx and 

PM standards for on-road heavy-duty vehicles by about 97 

percent, as this chart shows. In 2013, California 

approved the federal Phase I greenhouse gas standards for 

trucks over 8500 pounds. 

Later, I'll discuss our efforts in developing the 

next round of greenhouse gas standards called Phase 2. 

California's in-use programs, such as truck and bus 

regulation and other fleet rules, complement the new 

engine requirements by requiring technology upgrades and 

accelerated vehicle replacements. 

In 2008, ARB approved the first-ever greenhouse 

gas emission reduction requirements for the largest 

heavy-duty trucks through the tractor-trailer greenhouse 

gas regulation. This regulation includes requirements for 

both new and in-use heavy-duty vehicles.

--o0o--

MANAGER HEROY-ROGALSKI: The new engine emissions 

standards, which I showed on the last slide, are the 

foundation of ARB's heavy-duty vehicle program. 

Manufacturers currently are required to comply 

with the emission standards on two test cycles to simulate 

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both urban and long haul driving. 

In addition, each engine family must comply with 

the emission limits of the not to exceed, or NTE, test. 

To ensure that engines meet certification standards 

throughout their useful life and are repaired for 

emission-related component failures, manufacturers must 

submit durability test data and offer required warrantee 

coverage. 

New heavy-duty engines are also required to 

employ on-board diagnostic or OBD, systems which include 

censors to monitor vehicles emission control systems and a 

check engine light to alert drivers if there is a problem. 

Although the overall emission standards are harmonized 

between California and U.S. EPA, some of our OBD 

requirements took effect earlier than the federal OBD 

program and in some cases include monitoring of more 

components. 

Another unique element of California's program is 

the optional, low NOx standards adopt in 2013. These 

optional standards lay the groundwork for future mandatory 

lower NOx standards.

--o0o--

MANAGER HEROY-ROGALSKI: I now want to highlight 

some of our programs to reduce emissions from in-use 

vehicles, that is the legacy fleet. Diesel engines last a 

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long time, enabling many heavy-duty vehicles to remain in 

operation for hundreds of thousands of miles. 

As a result, fleet turnover to new vehicles 

equipped with lower-emitting engines is slow. New engine 

standards alone are not sufficient for California to 

attain federal air quality standards. 

To address this, ARB implements programs to 

reduce criteria pollutants from the legacy fleet through 

fleet rules that require accelerated vehicle replacements 

and technology upgrades, limits on commercial vehicle 

idling time, and requirements for vehicle smoke 

inspections. 

In addition, ARB offers incentive funding through 

the Carl Moyer and Prop. 1B Goods Movement Programs to 

assist fleet owner in replacing older, higher-emitting 

engines, and vehicles.

--o0o--

MANAGER HEROY-ROGALSKI: New engines and fuels 

requirements coupled with programs to reduce emissions 

from the legacy fleet are successfully working together to 

significantly reduce diesel emissions and the associated 

air toxic risk. 

Based on the multiple air toxics exposure study, 

or MATES, draft report for 2012 through 2013 called MATES 

IV, overall cancer risk has decreased more than 50 percent 

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between 2005 and 2012 in the South Coast region. 

Monitoring, inventory, and modeling approaches 

all show similar results demonstrating that ARB's 

heavy-duty vehicle program is providing verifiable 

benefits in the region of California and experiences the 

most severe air quality challenges.

--o0o--

MANAGER HEROY-ROGALSKI: ARB's current program 

also provides climate benefits. As I mentioned earlier, 

ARB's tractor-trailer greenhouse gas regulation, an AB 32 

early action measure, requires improved aerodynamics and 

tires for long-haul tractors and trailers operating on 

California roads. 

California also approved the federal Phase I 

greenhouse gas standards, which begin with the 2014 model 

year. This chart illustrates the Phase I standards 

greater than 20 percent reduction in CO2 emissions for 

Class 8 sleeper cab trucks.

--o0o--

MANAGER HEROY-ROGALSKI: So I'll now move on to

discuss the staff's recent program evaluation.

--o0o--

MANAGER HEROY-ROGALSKI: As you recall, truck 

owners voiced their concerns about diesel PM filters at 

the Board meeting last October. These concerns generally 

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focused on filter performance, durability, and vehicle 

down time associated with repairs. 

In response, staff initiated a technology 

evaluation and presented the Board an introductory status 

of date in April. Today, I'll summarize staff's 

evaluation. Because the final data analysis is still 

ongoing, staff plans to provide you a complete report in 

writing later this year. 

To perform the evaluation, staff inspected about 

400 trucks and 41 fleets concerned with filter issues and 

reviewed their maintenance records. Additionally, staff 

conducted over 600 roadside inspections and truck driver 

surveys. In this total, staff inspected and collected 

data from over a thousand heavy-duty diesel trucks, in 

addition to reviewing warrantee, emissions, and 

maintenance data, and surveying filter manufacturers and 

installers. 

As staff delved deeper into its evaluation, we 

uncovered issues related to endurability and in-use NOx 

emissions and thus focus their efforts in those areas as 

well.

--o0o--

MANAGER HEROY-ROGALSKI: In general, staff found 

that filters are working as designed. When functioning 

properly, a filter virtually eliminates all particulate 

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emissions. Several roadway and vehicle testing studies 

validate that properly functioning PM filters effectively 

reduce diesel PM emissions and other compounds toxic to 

human health. 

In addition, staff confirmed that warrantee claim 

rates for filters are low, both for retrofit filters and 

most original equipment filters. 

As I'll expand upon more in the next slide, staff 

found that filters appear to be uncovering underlying 

problems with engines and emission control systems due 

either to flawed components, inadequate maintenance, or 

some combination thereof. I'll talk more about 

preventative maintenance later.

--o0o--

MANAGER HEROY-ROGALSKI: While staff concluded 

that diesel particulate filters are generally working as 

designed, they also confirmed that some fleets were 

experiencing filter problems. The vast majority of these 

problems appear to be due to other engine malfunctions 

that, when not addressed, affect filter performance and 

durability. 

For example, failed turbo chargers may be leading 

to high PM rates that clog filters. Rather than being the 

source of the problem, it appears that diesel particulate 

filter are uncovering preexisting engine issues. A small 

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fraction of engine issues can even damage PM filters, thus 

reducing their effectiveness. 

To understand the extent of some issues, staff 

examined heavy-duty engine warrantee claims data for the 

past decade. Data indicates that heavy-duty warrantee 

claim rates are much higher than we expect and much higher 

than we typically see for light-duty vehicles. In fact, 

for some recent model years, we are seeing on average more 

than one warrantee claim per engine. 

It's also important to know that the warrantee 

period generally covers only 100,000 miles, whereas it's 

common for heavy-duty trucks to operate for 800,000 miles 

and more. Extending warrantee periods to facilitate 

quicker repairs and hold manufacturers responsible is one 

option for improving engine durability and emissions 

performance. 

ARB also needs additional statutory authority to 

hold heavy-duty engine manufacturers more accountable for 

their product lines.

--o0o--

MANAGER HEROY-ROGALSKI: As you've already heard, 

ARB has adopted increasingly stringent engine 

certification standards over the last two decades with 

today's engines generally coming new with selective 

catalytic reduction, or SCR, NOx control. While SCR is 

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very effective in high speed, high engine load cruise 

conditions, it's less effective in stop-and-go driving 

conditions because the system catalyst requires a minimum 

operating temperature to function effectively. 

Hence, excess NOx is of particular concern for 

stop-and-go operations, like local delivery trucks that 

spend a significant time at low speed, low load.

--o0o--

MANAGER HEROY-ROGALSKI: Based on the findings so 

far from the program evaluation, I'll now discuss possible 

improvements to ARB's existing heavy-duty vehicle program 

that we think can achieve additional criteria pollutant 

reductions and help better are address truck owners' 

concerns.

--o0o--

MANAGER HEROY-ROGALSKI: First, we're looking for 

ways to ensure heavy-duty engines and emission controls 

remain more durable. For example, I mentioned earlier 

expanding warrantee requirements. Staff is also 

considering improvements to the in-use compliance testing 

program, under which ARB can bring trucks in for testing 

to see how their emissions are performing in use. 

Staff is also looking for ways to improve truck 

preventative maintenance. As we spoke with fleet 

maintenance personnel and truck drivers during the program 

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evaluation, one finding that became clear was that as 

truck technology has evolved, truck maintenance practices 

have not always kept up. To address this, ARB staff has 

joined with the trucking industry, engine manufacturers, 

and retrofit installers in a preventative maintenance 

working group. This group aims to develop maintenance 

best practices and then disseminate this information to 

truckers. 

A third way to help ensure better durability is 

to improve our current smoke inspection program through 

stricter opacity standards, taking fuller advantage of 

truck's OBD systems and potentially other methods. 

--o0o--

MANAGER HEROY-ROGALSKI: In addition to the 

program improvements I've already discussed, we recognize 

the need for future lower mandatory NOx standards for new 

engines, given the magnitude of California's air quality 

challenges. 

To lay the technical foundation now, ARB is 

leading research at the Southwest Research Institute to 

demonstrate diesel and natural gas engines that could be 

certified to 90 percent below today's NOx standard. 

As we work on the next generation of new engine 

standards, we have three goals in mind. 

First, the need for lower national NOx standards 

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for new truck engines. We will continue to coordinate 

with U.S. EPA on the development of new, national lower 

NOx standards for heavy-duty trucks. Since more than half 

the heavy-duty trucks operating in California typically 

have been purchased out of state, national standards are 

key. 

Second, stronger durability requirements and 

expanded warrantee periods to encourage manufacturers to 

produce high-quality engines and that remain low emitting. 

And third, the need for broader in-use compliance 

testing and inspection maintenance to ensure heavy-duty 

vehicles continue to operate cleanly.

--o0o--

MANAGER HEROY-ROGALSKI: So I just talked about 

program improvements to get more NOx and PM reductions. 

Now I'm going to discuss further reducing greenhouse gas 

gases.

--o0o--

MANAGER HEROY-ROGALSKI: While the Phase I 

greenhouse gas standards were based on off-the-shelf 

technologies, Phase 2 standards are expected to be more 

technology-forcing. To demonstrate advances in engine, 

drive train, and vehicle efficiencies in class eight 

trucks, the Department of Energy has awarded 115 million 

to four teams participating in the Super Truck Program. 

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Including private industry investments, the total program 

cost is approximately 270 million. The program seeks to 

demonstrate further improvements in both engine and 

vehicle design and to achieve a 50 percent increase in 

overall tractor-trailer and engine efficiency by 2015. 

Four teams have signed up to work on the Super 

Truck Program: Cummins, Daimler, Navistar, and Volvo. 

Recently, the Cummins team demonstrated a 43 percent 

improvement in greenhouse gas emissions and fuel 

consumption rate.

--o0o--

MANAGER HEROY-ROGALSKI: Shown here are the key 

sources of energy loss in a tractor-trailer. As you can 

see, there are multiple sources of energy loss, but the 

two main ones are engine and aerodynamic losses. The 

remaining sources of energy loss as shown, include rolling 

resistance, auxiliary loads, drive train, braking and 

idling. Reducing these energy losses can improve fuel 

economy and reduce greenhouse gas emissions.

--o0o--

MANAGER HEROY-ROGALSKI: ARB staff has been 

cooperatively working with U.S. EPA and the National 

Highway Traffic Safety Administration over the past year 

to develop the scope and stringency of the Phase 2 

standards. U.S. EPA is scheduled to release its notice of 

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proposed rulemaking in early 2015 and is on schedule to 

adopt the final rule in March of 2016. Upon federal 

adoption of the Phase 2 program, staff plans to bring a 

proposed California Phase 2 program before the Board in 

mid-2016. 

The Phase 2 standards represent a significant 

opportunity to achieve further fuel economy improvement 

and greenhouse gas reductions for 2018 and later model 

year heavy-duty vehicles, including trailers, which were 

not included in the Phase I program. 

Based on the National Academy of Science's 2010 

report, Phase 2 standards can potentially reduce CO2 

emissions an additional 13 to 25 percent beyond Phase I, 

depending on the vehicle classification. The American 

Council for an Energy Efficient Economy and Union of 

Concerned Scientists recently confirmed these estimates, 

estimating Phase I and II standards combined could cut 

fuel consumption in new trucks by at least 40 percent when 

compared to 2010 levels. 

Based on ARB own staff's technical assessments, 

we agree this 40 percent CO2 reduction for the combined 

Phase I and II programs is technologically feasible.

--o0o--

MANAGER HEROY-ROGALSKI: Shown here are some of 

the various technologies that we expect engine and vehicle 

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manufacturers may use to achieve Phase 2 compliance. 

Overall, Phase 2 will require the use of optimized 

advanced engine and drive train technologies, engine 

down-sizing and lighter weight components, and improved 

aerodynamics for both vehicles and trailers. 

Staff plans to report back to the Board mid next 

year with a more detailed Phase 2 update after U.S. EPA 

releases its Notice of Proposed Rulemaking.

--o0o--

MANAGER HEROY-ROGALSKI: Some strategies that 

could be used to improve fuel economy and comply with the 

Phase 2 standards could make it more difficult to control 

NOx. Conversely, some strategies to reduce NOx can have a 

fuel economy penalty. However, simultaneous reductions in 

NOx and greenhouse gas emissions are possible. The key 

will be for engine and truck manufacturers to design 

integrated systems, keeping the needs to reduce both NOx 

and greenhouse gas emissions in mind. Many technology and 

strategies, such as hybridization, improved aerodynamics, 

low rolling resistance tires, and reduced idling reduce 

both NOx and greenhouse gas emissions.

--o0o--

MANAGER HEROY-ROGALSKI: I've already discussed 

today efforts to improve fuel efficiency to further reduce 

emissions for tomorrow's heavy-duty vehicles. To meet our 

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longer-term air quality and climate change goals, we need 

to greatly expand the use of zero and near-zero emission 

technologies. As you saw yesterday in the zero emission 

vehicle showcase, ultimately we expect to see these 

technologies mainstreamed into the heavy-duty vehicle 

sector.

--o0o--

MANAGER HEROY-ROGALSKI: Over the past year, ARB 

staff have collaborated with our air district partners to 

evaluate the current state of various mobile source 

technologies and fuels and assess the potential of 

promising advanced technologies for use within the next 

decade. 

The heavy-duty engine and vehicle sector has been 

a major component of this technology assessment and 

included separate staff teams evaluating different 

advanced technology sectors, such as hybrid, battery 

electric, and fuel cell, as well as improvements to diesel 

and natural gas engines. 

The technology assessments have evaluated well to 

wheel emissions for a variety of fuel types and 

technologies, identified infrastructure needs, and 

highlighted the most promising areas for ARB to focus its 

demonstration and incentive funding efforts. 

Staff held a series of workshops in September to 

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present the initial results and are currently working to 

finalize their findings.

--o0o--

MANAGER HEROY-ROGALSKI: One of the main ways 

California government can foster advanced technology 

development and deployment is by investing in technology 

demonstrations and deployment. 

Together, ARB and the California Energy 

Commission are currently distributing 200 million annually 

in such funding with much of these funds being generated 

by greenhouse gas auction proceeds. That is cap and trade 

funds. 

ARB and CEC are funding a diverse portfolio of 

heavy-duty projects, including demonstrations, pilot 

deployments, infrastructure, and use of renewable fuels. 

This past June, the Board directed up to $85 million in 

ARB's heavy-duty vehicle funding to hybrid and zero and 

near-zero truck and bus demonstration and deployment 

projects. All of these funds are moving technologies 

along the development path, from research and development, 

through demonstration and pilots, toward commercialization 

and widespread use.

--o0o--

MANAGER HEROY-ROGALSKI: So to wrap up today's 

presentation, our existing heavy-duty truck programs have 

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been effective, but further improvements are possible. 

And there's lots to do to encourage technologies that 

advance us along the pathway to zero emission. 

The upcoming Phase 2 greenhouse gas emission 

standards will be an important next step in making trucks 

more fuel efficient and cutting CO2 emissions. 

Finally, the technology assessments currently 

underway are laying the foundation for future regulatory 

development and state implementation plans. 

Thank you. We'll now be happy to respond to any 

questions or comments you have. 

CHAIRPERSON NICHOLS: Thank you. 

We have a couple of people who signed up to speak 

to us. So why don't we hear from them first. This is 

obviously not an action item today, but I think we will 

want to have some comments in general. 

BOARD MEMBER SPERLING: Can I ask some clarifying 

questions? So a great overview. The two slides that kind 

of concerned me a little. The ones -- I think it's 15 and 

16 talking about the engine durability and the NOx 

controls in-use emissions. And I'd just like to 

understand what exactly you're talking about, because at 

least -- if we're talking about class eight trucks the 

first few years, the majority of those are being used by 

big fleets, long haul. I would think they're maintained 

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well. 

And so the idea that there is maintenance issues 

or that there's problems seems kind of odd to me, unless 

we're talking about much later in the life of these 

trucks. And you know, there is NOx issues also. But can 

you explain that? What's really going on here? Because 

it sounds like there is a real problem. 

And also to quantify, is there any quantification 

of how many we're talking about and how much higher are 

these emissions really. 

DEPUTY EXECUTIVE OFFICER AYALA: Let me get it 

started and frame it for you at a higher level and then 

we'll have staff give you additional detail. 

When we set out to try to understand the question 

in terms of the effectiveness of the filters, we went to 

the field study that staff discussed. And in addition to 

that, we also looked at the information that is reported 

to the agency as part of the certification program. And 

as we started peeling the layers of this onion, we 

discovered, as staff reported, that, indeed, the filters 

are working as designed. But they are not installed and 

forget technology. You really have to pay attention to 

other things that are going on with the engine. It's a 

bit of the cannery in the mine type of thing. 

What we learned as we started looking at the 

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warrantee reporting that the manufacturers are submitting 

to us on a regular basis, we started uncovering a number 

of warrantee claims and other issues with components in 

the engine like turbo chargers and EGR valves and that 

start of thing. When you have one of those components not 

operating as designed, that problem can be manifested as a 

filter problem. And really to sum it up from our staff's 

perspective, what we are uncovering is an uncomfortable 

high number of warrantee claims and such issues with 

components and engines that should be a lot more durable. 

And I think that's what we're trying to point to 

here. That really we should be expecting a higher level 

of quality in terms of the products that are being put on 

the market and the reports we're looking at are not 

suggesting that we have that high level of quality. And 

obviously, we have a reference point in terms of what we 

see for the light-duty sector. That's really what we're 

trying to indicate here. 

And as staff said, unfortunately, at the moment 

we don't have the flexibility to actually do much about 

it. That's one of the key issues we're going to be 

working on. Because again statutorily, there is limited 

action that we can take. 

So let me turn to staff so see if they want to 

add something. 

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ASSISTANT DIVISION CHIEF SAX: Todd Sax. I can 

talk about a couple of things. I can talk about in-use 

NOx. One of the things that we noticed in the testing 

that we've done both in chassis dynamometer testing and 

also in portable emissions measurement testing is that 

under low temperature, low load operations, the selective 

catalytic reduction device doesn't operate as efficiently 

as it does at high speeds. And the net result of that is 

what we term vocational applications for truck operations, 

you don't necessarily get the same level of NOx control 

that you would in over-the-road on the freeway 

applications. 

And that isn't to say that the trucks aren't 

providing a NOx benefit. They are actually when we look 

at the test data, the trucks that are certified in the 

2010 standard for NOx are much cleaner than any of the 

trucks that have been manufactured before them. But in 

vocational applications, we think that there's more that 

can be done to bring additional reductions out of the 

aftertreatment systems to continue to achieve NOx 

reductions. 

CHAIRPERSON NICHOLS: This is a recap of the 

discussion that we had on more than one occasion during 

the hearings on our truck and bus rule. And I don't think 

staff is adding anything new here. They're looking to 

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expand their jurisdiction to some degree. We may need 

legislation in this area, quite frankly. And I think that 

it's sort of an -- you have to balance a little bit 

because we think that these past programs have achieved 

results, but they haven't been as much as we hoped. 

Any other clarifying questions before with turn 

to the people who asked to speak to us? Okay. If not, 

Matt Miyasato from the South Coast Air District. 

MR. MIYASATO: Good morning, Chairman Nichols 

members of the Board. 

I just want to acknowledge Mayor Judy Mitchell 

who sits on this Board, usually on this seat. For the 

record, I met with some of the Deputy Executive Officers 

on science technology advancement here at the South Coast 

air basin. I'd like to thank the staff, not only for the 

overview that you provided today, but also for involving 

the air districts in the technology assessment because 

heavy-duty trucks are near and dear to our hearts. As you 

heard from Dr. Wallerstein yesterday, Dr. Joe Lyou and 

Mayor Mitchell, we have a monumental challenge before us 

in the South Coast to reduce our NOx emissions by 2023 

over 60 percent. 

And heavy-duty trucks, if you remember that bar 

chart that Dr. Wallerstein showed, medium and heavy duty 

trucks are at the top of the bar chart. They represent 

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the largest sector of NOx emissions. We believe that's 

the area where we have the potential greatest emissions 

reductions potential for NOx. 

And, oh, by the way, if you reduce NOx emissions 

with technologies, you also get reduction in diesel 

particulate, which again Dr. Wallerstein showed is still 

the largest contributor to air toxics in our region. 

Although air toxics have reduced emissions, diesel 

particulate is still the number one contributor to air 

toxics. 

So because of this, we've been focusing on 

developing, demonstrating, and commercializing near-zero 

and zero emission technology that your staff had 

suggested. To be clear, when I say near zero, I'm talking 

about a working definition of 90 percent lower than 

existing standards. So .02 grams per break horsepower 

hour. And the technologies that we're investigating span 

the gamut from cleaner .02 gram heavy-duty natural gas 

engines to plug-in hybrids with all-electric range. So if 

you think of like a large Chevy Volt, fuel cell range 

extended trucks, battery electric trucks, several of which 

you saw out in the parking lot yesterday, to even trucks 

that are running on trolly lines, much like the buses that 

you see in the San Francisco area. 

So although we're working on developing and 

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demonstrating these technologies with the California 

Energy Commission as well as Department of Energy, as well 

as other stakeholders in the region, where we really need 

your help is the last couple slides your staff showed is 

in the commercialization of this technology. As you know 

from your experience with ZEV, you not only need 

technology push, but you need market pull. So we need 

your help in identifying opportunities, regulatory and 

policy wise, to help the technology push as well as 

incentivication for the market pull, for looking at 

incentives not only to establish the early market, but to 

keep the early market and then go for fleet penetration. 

So we thank you and your staff for the 

comprehensive overview that you've undertaken with the 

technology assessment. But now the hard work begins. So 

we want to work closely with you to identify the answers 

for the two questions: How do we implement and 

commercialize the technology? And how do we accelerate 

the deployment, especially here in the South Coast where 

we need those emission reductions so desperately. So 

thank you. 

CHAIRPERSON NICHOLS: Thank you. 

John Wall of Cummins. 

MR. WALL: Good morning, Chair Nichols and 

members of the Board. 

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Thanks for the opportunity to comment in support 

of the Phase 2 greenhouse gas standards for heavy-duty 

vehicles and engines. 

I'm John Wall, the Chief Technical Officer of 

Cummins. We're the world's largest manufacturer of 

automotive diesel engines and automotive natural gas 

engines. 

We think the challenge of climate change is 

extremely important in air quality. So we're certainly 

committed to continue to collaborate with the staff and 

innovate work with industry partners and our customers to 

respond to the challenge and with durable products. 

In the short term time, I'd like to speak to the 

measure of the rule. The Phase I greenhouse gas and fuel 

efficiency rule really provides a very strong foundation 

to move forward in Phase 2 and deliver on two important 

principles: Regulatory integrity and business 

consistency. Regulatory integrity to us means your 

intended improvements in emissions are assigned 

appropriately and directly to the engine and the vehicle 

are realized in real world use and can be physically 

verified and enforced. 

This business consistency means the regulation 

does not interfere with the structure and functioning of 

established business relationships among component and 

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vehicle manufacturers and their customers and maintains a 

level player field for all competitors. The critical 

element of the Phase I rule that delivered on these 

principles was a separate engine standard in addition to 

the vehicle level standard. 

Some have called for elimination of the vehicle 

and component standard -- or the engine and component 

standards and just the vehicle level standard in Phase 2. 

The vehicle standard in Phase I that is planned for Phase 

2 is based on computer simulation. It's useful for 

dealing with the diversity of vehicles in calculating CO2 

emissions at that level, but problematic for translating 

apparent benefits into real world effects. 

These trucks are very different than passenger 

cars. As you know, they're not just one piece. They're 

two pieces. The tractor and trailer are all interchanged 

in use. So there are no integrated vehicle tests that 

allow you to test at the vehicle level and enforce it in 

use. 

So you can calculate a very nice reduction in CO2 

emissions with the computer simulation, but in use in the 

real world, if the tractor is pulling a different trailer, 

if different tires are being used, then the calculated CO2 

emissions are really not being realized. So while it's 

useful, that vehicle level standard in the computer 

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simulation does not deliver regulatory integrity. 

A separate engine standard regulates the source 

of CO2 emissions, the engine, directly and provides clear 

direction to manufacturers for technology investment that 

is needed. It ensures that the projected CO2 emissions 

are realized regardless of the vehicle application and 

configuration. It can be physically verified and enforced 

with protocols that have been honed by ARB, EPA, by the 

industry over the past three decades. And by using these 

protocols, you can keep CO2 and NOx linked. NOx being 

very important to the state of California. You don't want 

to give one up for the other. 

So these test protocols allow us to regulate both 

simultaneously. It would also -- 

CHAIRPERSON NICHOLS: Your time is up. 

MR. WALL: Sorry. I'm on a roll. In any case, I 

think you got the point. 

CHAIRPERSON NICHOLS: We do. 

MR. WALL: We appreciate the time you've given us 

to comment. There's some written comments. 

CHAIRPERSON NICHOLS: We will look at the 

comments, and we may have questions for you later if 

you're going to be here. So thank you. Bonnie 

Holmes-Gen. 

MS. HOLMES-GEN: Good morning. 

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Bonnie Holmes-Gen on behalf of the American Lung 

Association of California. And I also wanted to present 

some comments on be ha affirmation both the Lung 

Association and the Union of Concerned Scientists 

basically supporting the great work that your Board is 

doing to move towards stronger heavy duty standards, both 

at the state level and at the federal level. And we 

strongly support the efforts that you've been reporting on 

today to work with EPA and NHTSA to set these strong phase 

two standards and significantly ramp down climate 

emissions from heavy-duty trucks. It's an incredibly 

important sector from both our GHG reduction efforts and 

for our criteria pollutants, meeting our federal standards 

in the heavy-duty truck sector. 

Emissions are expected to grow, unfortunately, 

because of the increase in goods movement activity and 

really need to ramp down those emissions. 

We want to underscore the study that your staff 

presented today by the Union of Concerned scientists and 

other groups that emphasize the availability of 

technologies to reduce heavy-duty truck emissions by 40 

percent for these 40 percent compared to 2010 levels. 

It's exciting that we have this new data and that we know 

technologies are available that can cost effectively 

reduce emissions, pay for themselves, reduce fuel costs to 

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owners, and achieve these health benefits. So we're 

excited about that. 

And the final point is that we wanted to 

underscore the importance by focusing on standards that 

can integrate the achievement of nitrogen oxides, NOx, 

emissions reductions and the GHG. You've heard a lot 

about that. We wanted to underscore the importance of 

moving in that direction. And of course, a key way to 

address that is to pursue zero emission technologies. 

I wasn't able to be at the technology showcase 

yesterday, but your webcam actually has some nice glimpses 

of the showcase. And you have great press conference. 

But we are really excited to continue working with you on 

the zero emission solutions through cap and trade funding 

incentives, the AB 118 program, and anything we can do, we 

want to partner with you to move forward on the zero 

emission technologies. Thank you so much. 

CHAIRPERSON NICHOLS: Thank you. And that 

concludes the list of witnesses who signed up. So just so 

bring the conversation back to the Board, this is just a 

status report. But things are moving fairly quickly with 

respect to the EPA. As you heard, they're about to come 

out with a proposal early next year. It's an important 

part of the President's Climate Action Plan. So we are 

going to be actively at the table. 

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I think it's fair to say we are concerned and a 

couple reasons to be concerned. One is the potential for 

a proposal that is not sufficiently ambitious, given 

pressures that will be coming, clearly coming from people 

who are going to be effected directly by the rule. 

But the other thing that I think we have to keep 

our eye on is this issue of how to make sure we're not 

doing anything that precludes or interferes with our 

ability to move forward with the tighter NOx standards. 

So this is sort of a regulatory artistry issue as much as 

it is a technology issue. 

We had some conversation about that last year. 

But I mean, yesterday, how soon we forget -- just 

yesterday. But I think this is an area where Board 

members are going to be hearing a lot in the weeks and 

months to come and would appreciate your input as well as 

your usual attention to making sure that ARB is in a 

position to maintain the strong posture on this. 

As you know, for the last several years, we've 

been working very hard at trying to integrate our 

activities more and more with the federal government in 

order to save everybody the costs -- transactions costs of 

multiple tests and so forth and to be on the same path. 

But this is one of those issues where it may be 

necessary for ARB to actually propose something that is 

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beyond what the federal government is prepared to do 

because of our unique air quality needs. It's something 

that I think will be resource-intensive and will be a 

major commitment. 

But if we look at what we've been through for the 

last several years, dealing with the in-use vehicles -- 

and you realize how incredibly long these engines and 

vehicle stay on the road and how conservative the industry 

is, it's just it doesn't make sense to let one of those 

rare opportunities go back when you've got the potential 

to shape what the technology is going to be like for 

literally decades to come into the future. 

And the issue that Dr. Sperling was inquiring 

further about in terms of the durability of the equipment 

is going to be a key part of this, because given the fact 

that they are dealing with equipment that's outdated for 

long periods and used very widely, it's just going to be 

important that we be mindful of the real world 

implications of some of these tests that may look good now 

but may not in the real world. 

So if anybody has any additional comments or 

thoughts, if not we can move on. Yes? 

BOARD MEMBER MITCHELL: I'd like to make a couple 

of comments. 

Everything that you said I think is important. 

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But commercialization of this sector into the newer 

technology is very important and is an extremely heavy 

lift, as you said, because the truck life is very long. 

But I also want to emphasize again the issues in 

the South Coast District and San Joaquin Valley, we need 

to have these extreme NOx reductions by 2023 and then 

again by 2032. And we're also looking at Phase 2 with 

even lower NOx standards. And that's important for public 

health, but it also puts an extra extreme burden on the 

South Coast district. 

So I want to emphasize that the obligations to 

get this done rest with us. We are the regulators of 

mobile sources, and I think we, as a Board, must step up 

and see that this gets done and that the NOx reductions 

that are needed here in the South Coast and San Joaquin 

can actually be accomplished. And it's our job to get 

that done. I want to emphasize that. Thank you. 

CHAIRPERSON NICHOLS: Thank you for that 

reminder. And also tying it to the comment that Mr. 

Miyasata made before about the dissemination of the new 

vehicles. So our job is not only to use our regulatory 

authority as well as we can, but also to do everything in 

our power to design the program that will get the best 

technology out there in the real world. 

BOARD MEMBER SPERLING: So on this durability 

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question, I can't help but think there must be some better 

way of dealing with it. It seems that now that we have 

OBDs in all of these trucks and have for a number of years 

and GPS, there must be some better way of approaching it. 

We have so much data potentially available, and it's not 

only in terms of the durability, but it's even in the case 

that some areas have a much more severe pollution problem 

than others. It might not be that we want to have a 

uniform requirement for all trucks everywhere. Maybe 

because of OBD, because of GPS, we can create kind of 

pollution regions and think of some way that, you know, 

whether through pricing or even just some other mechanism 

that we could address it in a much more efficient and 

effective way. 

It could be that if there is a high pollution 

area that you have -- if you're going to move your truck 

in that area, you pay a high fee. So a fleet would send 

in their electric trucks or their fuel cell trucks into 

those areas. So I just think, are we kind of thinking at 

all along those lines? 

DEPUTY EXECUTIVE OFFICER AYALA: Certainly, I 

think the short answer is absolutely. I completely agree 

with you that we are at the cusp of unleashing a level of 

innovation in terms of not just cleaner engines and 

trucks, but really truly sustainable mobility. 

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Transportation solutions will actually get us what we need 

in terms of not only the NOx, but the GHG. 

You're right, OBD is the starting platform. I 

mean, you know, we really want to learn from the lessoned 

learned and the fact for our cars and light-duty cars, 

we're going to be doing all IMN using the OBD system. We 

want to take those learnings and explore the potential the 

system has for the heavy duty trucks. 

When you consider the trends in the industry in 

terms of connectivity vehicle to vehicle, vehicle to 

internet, et cetera, I think we are at the point of 

looking at the potentially doing exactly what you're 

saying, Dr. Sperling. 

And part of the technology assessment that we are 

working on is trying to get into some of those areas so we 

can truly maximize the benefit in terms of increasing the 

efficiency of moving things and people as well as reducing 

the emissions at the core engine level. 

BOARD MEMBER SPERLING: Have any specific ideas 

that we are exploring?

DEPUTY EXECUTIVE OFFICER AYALA: So the very idea 

that you suggested is something that we actually have been 

talking to a few manufacturers. And that is because the 

systems are getting to the level of sophistication that 

you can dial in, in certain areas, you can go into a mode 

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that will give you, say, low NOx emissions. In other 

areas, you can dial in highly efficient engine operation. 

So obviously, technology that is zero as Dr. 

Miyasata talked about is going to be absolutely 

instrumental. So we're really exploring all the options 

at this point. I don't think that we've completed truly 

the in-depth assessment that we have in the works. And 

obviously, the input from the district and industry and 

other stakeholders is really going to get us down into 

what eventually is going to be the final solution. 

But the future looks very promising. And again, 

I think the credit goes to the manufacturers who are the 

ones that are innovating and actually bringing us this 

great technology to the market. 

CHAIRPERSON NICHOLS: I hear a little bit of a 

disconnect here. So I'm just going to weigh in. 

I think what Dr. Sperling is suggesting, as he 

often reminds us, is that there may be ways that we can 

employ fees or other kinds of variable incentives in order 

to target the reductions where we need them to be. 

I, of course, coming at this from a different 

perspective, see the headline "ARB adopts sacrifices for 

areas that are not going to get the cleaner trucks" and 

start to worry about the opposite. 

But regardless of which of those points you come 

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from, it is true that our need for the additional control 

is so much greater than any other place that we know of, 

at least right now, that it's hard for us to get our 

federal counterparts to seriously consider the levels of 

control that we need to meet our needs here in southern 

California. So we're going to have to explore every idea 

that's out there, even ones that may have been looked at 

before but didn't seem to be applicable I think are going 

to have to be on the table. 

So I do encourage you to think both about 

technology and about other tools that we could use at the 

same time. 

BOARD MEMBER SPERLING: And Chairman Nichols, one 

more question for you. You made the comment that we might 

have to go a separate way from EPA. Were you referring to 

just NOx but also greenhouse gas emissions? 

CHAIRPERSON NICHOLS: The two are -- the two of 

them are related to each other, obviously. We're dealing 

with the same engines, the same uses. So I think it's 

possible that we would want to try to do both. 

I'm encouraging the staff, and I've told my 

friends and colleagues at EPA that they should expect us 

to at least be seriously considering that idea whether we 

would actually go through it or not. I think what we have 

to look at the cost and benefits of doing a separate 

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California standard. 

But the fact is that we are the only counter 

weight that's out there to the views that are going to be 

heard very loudly in Washington at OMD and elsewhere that 

it doesn't make sense to push as far as we need to go. 

I mean, we look at the technology and say 40 

percent, sure. What about more? Why are we limiting 

ourselves to 40 percent? Let's think about doing 

something more ambitious. 

And while that viewpoint might be discussed by 

friends, for example, from the environmental community, it 

would not have anything like the same impact as if 

California is actually seriously proposing to do something 

along those lines. So I think it's worth seriously 

pursuing. 

Yes? 

BOARD MEMBER SHERRIFFS: Thank you. 

On Ms. Mitchell's comments, reminding us that 70 

percent of the health risk of air pollution in the 

United States of America, the population that is affected 

is the South Coast and the San Joaquin Valley. So this 

really is critical to our state and critical to specific 

areas of the state. And depending how far that ozone 

level is set by the EPA, well, in some ways it will remind 

a lot of the United States about the issue, in a sense, 

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put us back in the game. They it may not appreciate it 

now, but it is important to their health. 

CHAIRPERSON NICHOLS: Always a good reminder to 

bring this back to the health. 

Okay. I think we should move onto our next item, 

which is a report on the incentive-based emission 

reduction measures in the San Joaquin Valley. How 

appropriate. 

So we while the staff is switching places, I'll 

just note that California has made a substantial 

investment over the last 15 years in standardizing the 

introduction of new cleaner technology earlier than what 

the law and regulations otherwise would require. 

Incentive programs provides significant emissions 

reductions across the state and are a critical part of 

meeting the state's SIP commitments for emission 

reductions in the San Joaquin Valley. In fact, there's I 

think nowhere what has deployed incentive programs as 

widely as the San Joaquin has. 

Staff has been working with U.S. EPA to ensure 

that the state receives SIP credit for these emissions 

reductions. The report that we're considering today is 

one step in seeking U.S. EPA's approval to recognize the 

reductions from these incentive programs. 

Mr. Corey, would you please introduce this item? 

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DEPUTY EXECUTIVE OFFICER COREY: Yes. Thank you. 

In 2008, ARB adopted a SIP for the San Joaquin 

Valley to attain an annual PM2.5 standard by 2014. 

In the SIP, ARB committed to reduce emissions to 

the levels necessary to achieve the PM2.5 standard through 

the ongoing benefits of existing control programs, new 

control measures, and programs the Board has adopted since 

SIP approval and from incentive programs. 

The report quantifies emission reductions from 

the Carl Moyer and Prop. 1B incentive programs and 

demonstrates how these emission reductions can be counted 

towards meeting the emission reduction commitments in the 

San Joaquin Valley SIP. 

And with that, Carol Sutkus sensitivity will 

present the staff presentation. 

(Thereupon an overhead presentation was 

presented as follows.)

MANAGER SUTKUS: Thank you, Mr. Corey. And good 

morning, Chairman Nichols and members of the Board. 

Today, I will provide you with an overview of 

staff's report on incentive-based emission reductions in 

the San Joaquin Valley. 

This report serves as a mechanisms for the U.S. 

Environmental Protection Agency to approve emission 

reduction achieved through the Carl Moyer and Proposition 

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1B incentive programs as part of the State Implementation 

Plan, or SIP, for the San Joaquin Valley.

--o0o--

MANAGER SUTKUS: Incentive programs play an 

important role in reducing emissions in California. They 

work hand in hand with regulations to provide emission 

reductions. And the early investment in advanced 

technology spurs commercialization of cleaner vehicles and 

equipment. These advanced technologies ultimately become 

commonplace. 

Incentive programs were first included in 

California SIPs 20 years ago and have been a key component 

of the state's air quality strategy ever since.

--o0o--

MANAGER SUTKUS: There are a broad variety of 

incentive programs available in this state that draw on a 

mix of local, state, and federal funding. 

On a statewide basis, ARB works closely with the 

local air districts to distribute incentive funds and 

implement the requirements of the programs, including 

tasks such as inspections and audits. In turn, air 

districts tailor their incentive programs to meet their 

local needs. 

Today, we are focusing on two successful 

incentive programs; the Carl Moyer Memorial Air Quality 

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Standards Attainment Program and the Proposition 1B Goods 

Movement Emission Reduction Program. These two programs 

have awarded a total of $1.6 billion in California to 

date.

--o0o--

MANAGER SUTKUS: The Carl Moyer Program has been 

in place for over 15 years and provides grant funding for 

cleaner than required engines and equipment. 

Last year, ARB, local districts, and stakeholders 

collaborated to sponsor legislation to maintain Carl Moyer 

Program funding into the future. 

Legislative action successfully reauthorized 

funding for the Carl Moyer Program through 2023. 

To date, this program has awarded $900 million, 

statewide, with $151 million in the San Joaquin Valley, 

replacing over 5,000 highly polluting engines.

--o0o--

MANAGER SUTKUS: The Proposition 1B program was 

established by voters in 2006 to reduce health risks along 

trade corridors. The program funds emission reductions 

from activities related to the movement of freight. To 

date, over $700 million have been awarded for projects 

throughout California. In the San Joaquin Valley, $145 

million have been awarded, replacing about 3,000 highly 

polluting engines. 

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The Board adopts guidelines that specify how the 

programs are implemented. These same guidelines also 

provide the basis for demonstrating to the U.S. EPA that 

the reductions achieved meet the requirements of the Clean 

Air Act.

--o0o--

MANAGER SUTKUS: When the Board adopts a SIP, it 

makes legal commitments to take specific actions and to 

achieve the total reductions needed to attain the air 

quality standard in a region. 

The total reductions come from ongoing 

implementation of the existing control programs, plus 

further emission reductions from new emission reduction 

measures. These reductions can be achieved through 

regulations as well as incentive programs. 

Once adopted and SIP implementation begins, staff 

tracks the status of proposed rules, adopted regulations, 

and reductions from incentive programs to document that 

the state is meeting its SIP commitment. 

Today's report is part of the SIP tracking effort 

for the San Joaquin Valley.

--o0o--

MANAGER SUTKUS: In 2008, ARB made a SIP 

commitment for emission reductions in the San Joaquin 

Valley as part of the SIP for the annual PM2.5 standard in 

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2014. Today's report identifies emission reductions that 

have been achieved through the Carl Moyer and Proposition 

1B incentive programs in the 2014 calendar year as part of 

meeting that commitment. 

For each type of incentive project, the report 

details how the Moyer and Proposition 1B guidelines meet 

the U.S. EPA approval requirements for reductions being 

enforceable, quantifiable, surplus, and permanent. These 

are the same criteria U.S. EPA uses when approving 

reductions achieved through regulations. 

The report also identifies each specific project 

from which reductions in 2014 are achieved.

--o0o--

MANAGER SUTKUS: The emission reductions 

documented in the report are from projects that achieve 

reductions throughout the entire 2014 calendar year. 

There are over 800 Carl Moyer projects and almost 1500 

Proposition 1B projects, consisting of off-road mobile 

agricultural equipment, portable engines, and heavy-duty 

diesel trucks. 

The emission reductions achieved from these 

projects are shown here in this table, representing 7.8 

tons per day of NOx reductions and .2 tons per day of 

diesel PM2.5 reductions in 2014. Through this report, ARB 

is documenting that these projects provide SIP creditable 

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emission reductions.

--o0o--

MANAGER SUTKUS: Staff, therefore, recommends 

that the Board approve the report and direct staff to 

submit it to U.S. EPA for inclusion in the SIP. That 

concludes my presentation. 

Staff will be happy to answer any of your 

questions. 

CHAIRPERSON NICHOLS: Any questions? We have one 

witness. 

Cary Drake of U.S. EPA. 

MR. DRAKE: Good morning, Chair Nichols and 

members of the Board. 

On behalf of EPA, let me say thank you for 

letting us testify before you today. So we understand and 

I think the previous presentations really bear it out. We 

understand that not only is your Board a partner with EPA 

in setting stringent emission limits for engines and 

mobile sources, that in many ways it's a leader in that 

very same endeavor. And we also understand that you need 

those stringent emission standards because of the air 

quality challenges that you have here, particularly in the 

South Coast and San Joaquin Valley. 

And we also understand that you've taken 

sometimes heroic I think measures through in-use rules, 

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for example, to accelerate the emission reductions. And 

also an amazing investment that your Board or that your 

staff just laid out to you in accelerating those emissions 

reductions that are needed. 

And we also understand that you need credit for 

those State Implementation Plans, because we're getting to 

that point where we need those credit in order to meet 

federal Clean Air Act requirement. 

So it's been a longstanding interpretation of EPA 

that economic incentive programs are creditable in the 

SIP, but that they have to be demonstrated to be 

quantifiable surplus, enforceable, and permanent as the 

staff just laid out. 

We believe that it's important for the state to 

give us a rigorous evaluation of these criteria and to 

demonstrate that those criteria have been met. And that's 

what this report is intended to do. 

So we've worked with your staff on this. We 

appreciate their hard work. We look forward to you 

submitting it to us and reviewing it and acting from 

there. 

I'm here to answer any questions if you have any. 

CHAIRPERSON NICHOLS: I don't think there are any 

questions here. Thank you so much. Appreciate your 

coming and participating. 

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We have a Resolutions Number 14-36. Do I have a 

motion and a second? 

BOARD MEMBER SHERRIFFS: Move the amended 

regulation. 

BOARD MEMBER GIOIA: Second.

BOARD MEMBER EISENHUT: Second. 

CHAIRPERSON NICHOLS: Let's do a voice vote. 

That's good to do every once in a while. 

BOARD CLERK JENSEN: Ms. Berg? 

BOARD MEMBER BERG: Aye. 

BOARD CLERK JENSEN: Mr. De La Torre? 

Mr. Eisenhut?

BOARD MEMBER EISENHUT: Aye. 

BOARD CLERK JENSEN: Supervisor Gioia? 

BOARD MEMBER GIOIA: Aye. 

BOARD CLERK JENSEN: Mayor Mitchell? 

BOARD MEMBER MITCHELL: Aye. 

BOARD CLERK JENSEN: Mrs. Riordan? 

BOARD MEMBER RIORDAN: Aye. 

BOARD CLERK JENSEN: Supervisor Serna? 

BOARD MEMBER SERNA: Aye. 

BOARD CLERK JENSEN: Dr. Sherriffs? 

BOARD MEMBER SHERRIFFS: Yes. 

BOARD CLERK JENSEN: Professor Sperling? 

Chairman Nichols? 

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CHAIRPERSON NICHOLS: Aye. 

BOARD CLERK JENSEN: The motion passes. 

CHAIRPERSON NICHOLS: Great. Thank you. 

BOARD MEMBER SHERRIFFS: On behalf of the valley, 

thanks staff for their hard work on this moving it 

forward. You batted more than 400 on this one. 

CHAIRPERSON NICHOLS: Good work. It's nice that 

it seems to simple. And it's really great that EPA has 

found a way over the years to legitimately credit things 

that don't come in the form of regulations that are easy 

to enforce. 

BOARD MEMBER SHERRIFFS: The incentives are 

hugely important to making -- well, it works both ways. 

It's the regulations that make the incentives work, but 

also it's the incentives and how those are applied that 

make people more accepting and willing to work and come to 

the table with regulations. 

CHAIRPERSON NICHOLS: And the fact you can 

actually quantify the reduction is obviously key. Great. 

All right. 

Our last item before we break for an executive 

session, which will be short, is a continuation of our 

discussion from prior Board meetings regarding the process 

for updating the SB 375 targets. The issue has generated 

a lot of interest from numerous participants around the 

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state. The Scoping Plan update under AB 32 reiterated 

that greenhouse gas emission reductions are needed from 

the transportation sector, including changes to land use 

as well changes in technology. 

Passenger vehicle emissions proposed about 

one-quarter of the total greenhouse gas emissions in 

California. For this reason, SB 375 is one of the key 

strategies mentioned in this Scoping Plan for meeting our 

climate objectives. 

Today, staff will provide recommendations for how 

we will update the targets. And this has come out of 

discussions with a spectrum of stakeholders over the last 

year. 

While today's informational item does not involve 

any formal request for Board action or decision on 

revising the greenhouse gas emissions reductions targets, 

I expect that the Board members will be sharing with staff 

their ideas, thoughts, and guidance on how to proceed. 

Mr. Corey, would you please introduce this item? 

DEPUTY EXECUTIVE OFFICER COREY: Yes. Thank you, 

Chairman. 

In 2010, the Board adopted per capita greenhouse 

gas emission reduction targets for the 18 NPOs in 

California pursuant to SB 375. 

The first round of regional transportation plans 

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and sustainable community strategies prepared pursuant to 

SB 375 is nearly complete. And the second round is 

already underway in certain regions. ARB's role in 

implementing 375 includes reviewing the greenhouse gas 

determinations prepared by the MPOs and setting and 

revising the GHG emission reduction targets that apply to 

each of the MPOs. 

375 requires ARB to update the GHG emission 

reduction targets every eight years, but the Board can 

revise them of four years to reflect changes that may 

effect the targets. When ARB adopted the targets in 2010, 

you asked staff to come back in four years to discuss 

updating targets. 

In January 2014, staff briefed you on the status 

of implementation of the program and some thoughts on the 

process for the next target update. Since the January 

briefing, we've had numerous discussions with MPOs, 

stakeholders, and the public to gather input on process to 

update the targets. 

Staff will present recommendations to you today 

that include continued outreach to the MPOs and regular 

communication with stakeholders over the next year as we 

develop recommended regulations from new targets. 

And with that, Terry Roberts will give the staff 

presentation. Terry. 

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(Thereupon an overhead presentation was 

presented as follows.)

MANAGER ROBERTS: Thank you, Mr. Corey. 

Good morning, Chairman Nichols and members of the 

Board. 

This is an informational briefing to present 

staff's proposed approach to updating the SB 375 

greenhouse gas emission reduction targets for the MPO 

regions of California. 

When the Board established the original targets 

in 2010, you directed staff to provide an update in four 

years to review the progress of target implementation and 

the need for updating the targets. Early this year, the 

Board provided further direction by asking staff to engage 

in public outreach with stakeholders before recommending 

on approach for updating the targets. 

This briefing presents the results of our 

stakeholder outreach, a proposed time line and process for 

updating targets, and a description of related work that 

staff will undertake over the next two years.

--o0o--

MANAGER ROBERTS: SB 375 implementation involves 

several things. It means ARB establishing and updating 

the targets. It means MPOs adopting regional plans that 

show how the targets could be achieved. 

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Most importantly, it means local actions to 

implement the regional plans so that they are more than 

just policy statements, but rather action-oriented plans 

that result in real greenhouse gas reductions. 

The first group of adopted sustainable community 

strategies, or SCSs, demonstrates a commitment to more 

sustainable planning. The success of the target update 

and new planning rests on implementing the current plans 

so that the regions can meet their 2020 targets and 

establish the foundation for meeting their 2035 targets. 

Our priority now should be on the SCS implementation. 

The SB 375 program has resulted in many positive 

changes in the way that California plans for the future. 

It has created a framework for better planning and 

decision making. Implementing the current plans is 

expected to result in many positive changes in our 

communities beyond greenhouse gas reductions, such as: 

Improved public health through active transportation, more 

ability choices that reduce reliance on the single 

occupant vehicle; more coordinated land use planning; 

lower costs for transportation, utility infrastructure and 

energy; and conservation of natural resources for a more 

compact development patterns. 

These benefits have generated broad support for 

the plans among residents, local governments, the business 

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community, health professionals, and environmental 

organizations.

--o0o--

MANAGER ROBERTS: With the heightened awareness 

of co-benefits associated with SCSs, there is growing 

interest in developing methods to measure or quantify 

those co-benefits. MPOs have developed a variety of 

performance measures to evaluate the benefits and to 

monitor the performance of their plans. Some of these 

performance measures include improvements in public 

health, increasing the amount of open space and ag land 

conserved, increasing economic and job growth, and 

reducing infrastructure costs. 

The ability of MPOs to develop and use robust 

performance measures is often limited by the availability 

of tools and data to quantify these co-benefits and 

measure change over time. 

For example, while new tools are being developed 

and tested to quantify the public health and other 

co-benefits of an SCS, there are currently no widely 

available and universally accepted tools for this purpose. 

Additional work is necessary to develop better methods 

that can be made available for use by MPOs and local 

governments.

--o0o--

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MANAGER ROBERTS: We are seeing SCSs that reflect 

more integrated planning with more sustainable land use 

strategies supported by a program of transportation 

investment that can result in lower per capita greenhouse 

gas emissions. A few examples of notable land use 

strategies include focused growth in priority development 

areas in the Bay Area, focused infill development in high 

quality transit areas in southern California, mapping of 

potential infill locations in the San Diego region's smart 

growth concept map, and the Sacramento region's focus on 

compact mixed use supported by high frequency transit. In 

virtually every SCS, we see the policy of encouraging more 

compact growth in existing urbanized areas. 

Similarly, the SCS reflect common transportation 

strategies that support a move towards more compact urban 

infill. These include policies to accelerate and expand 

investments in public transit, including bus, bus rapid 

transit, and light rail services. 

Every region has made commitments to active 

transportation as a component of the transportation 

system, with increased planning and dedication of funding 

for pedestrian and bicycle infrastructure. Where 

appropriate, MPOs have made commitments to develop the 

local infrastructure necessary to meet and surpass 

statewide goals for the purchase and use of advanced 

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technology vehicles.

--o0o--

MANAGER ROBERTS: The commitment to plan must be 

accompanied by a commitment to implement those plans if 

emission reductions are to be realized. MPOs are taking 

steps to implement their first SCSs. However, 

implementation of these SCSs is dependant on available 

resources for planning and project development. 

The regional transportation plans of which the 

SCS is an integral component are financially constrained. 

By law, the RTP must include a financial component that is 

based on reasonably foreseeable funding to cover the cost 

of projects included in the plans. 

All MPOs have identified funding needs to 

implement their plans and recognize that the financial 

resources for local SCS implementation are severely 

limited. It is critical that funding be available in 

sufficient amounts to support SCS implementation at both 

the regional and local levels. 

Investments need to be made now if we expect 

regions to meet their 2020 targets and stay on course to 

reach their 2035 goals. This fiscal year, the Strategic 

Growth Council plans to allocate $130 million in cap and 

trade proceeds through its Affordable Housing and 

Sustainable Communities Program. The SGC's grant 

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guidelines are under development and will be finalized in 

December, after which the SGC plans to solicit grant 

applications and award the funds by June 30 of next year. 

The draft grant guidelines focus on providing 

financial assistance for the development and 

revitalization of affordable housing, mixed use projects, 

and related infrastructure, consistent with the regional 

SCSs.

--o0o--

MANAGER ROBERTS: The next few slides will 

outline staff's proposal for a time line and process for 

updating the targets based on public and stakeholder 

input.

--o0o--

MANAGER ROBERTS: In April, ARB staff convened a 

stakeholder round table meeting to solicit input on an 

approach to the target update. We released a preliminary 

draft staff report in August that identified a range of 

issues to be considered. 

In September, staff convened a second round table 

meeting and held four public workshops to discuss the 

issues identified in the August staff report. Several key 

themes have emerged from these discussions. 

The first of these is that ARB's focus should be 

on updating the 2035 targets while continuing to support 

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MPOs to meet their current 2020 targets. There is also 

broad agreement that MPOs should have the opportunity to 

provide target recommendations to ARB based on scenario 

development and other technical data and analysis. 

This is consistent with the statutory requirement 

for ARB to engage in the consultative process with MPOs 

and others before updating the targets. 

Finally, there is support for continuing efforts 

to develop tools and other methods of estimating the 

co-benefits of regional plans, particularly in the area of 

public health. All of these themes, as well as staff's 

recommended approach, are reflected in the staff report 

that ARB staff released on October 15. 

In the next few slides, I will present the 

proposed schedule for updating the targets. The 18 MPO 

oxidation can be placed in three groups which for policy 

and technical reasons should be addressed separately. The 

following time line and process take into consideration 

our focus on SCS implementation together with the 

recognition that MPOs have staggered, not concurrent, 

schedules for plan updates.

--o0o--

MANAGER ROBERTS: The four largest MPOs, SANDAG, 

SCAG, SACOG, and MTC are the four largest regions of the 

state representing the majority of the state's population 

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and vehicular emissions. 

In 2010, these MPOs provided target 

recommendations based on alternative scenario analyses 

that demonstrated feasible emission reductions based on a 

suite of SCS strategies. 

For the target update, staff envisions a similar 

process of working with these MPOs during 2015 on the 

necessary scenario analyses and quantification of 

cobenefits underpinning their new target recommendations. 

Staff would return to the Board in the late 2015 

with recommended targets for these MPOs. Because their 

next SCSs are already in various stages of development, 

their updated targets should be made effective for their 

third SCSs that would be adopted starting in 2019.

--o0o--

MANAGER ROBERTS: The current placeholder targets 

for the eight San Joaquin Valley MPOs were established 

shortly after these MPOs had adopted their 2010 RTPs. 

These targets were intended to be revised once 

transportation modeling improvements were completed and 

alternative scenario analyses could be provided. 

Those model improvements were completed in 2013 

and used in their recent scenario analysis and SCS 

planning. ARB staff will evaluate the first SCSs from the 

valley and continue to look into the effect of SCS 

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strategies and inter-regional travel over the next year or 

so. 

The process should provide help us to more 

accurately quantify the emission reductions achievable by 

their first SCSs. Staff would return to the Board in 2016 

with recommended targets for these eight MPOs to use in 

their next SCSs slated for adoption in 2018.

--o0o--

MANAGER ROBERTS: The modest targets for six 

smaller MPOs were largely based on the greenhouse gas 

emission reductions expected from their RTPs in place at 

the time of the initial target setting. For some, their 

targets are zero. And in one case, the target is actually 

an increase in per capita emissions. 

However, their first SCSs are demonstrating much 

better performance than the targets demanded. By early 

2015, all six of these MPOs will have adopted an SCS and 

the performance of their SCSs will help inform updated 

targets. 

Targets for the six smaller MPOs would be updated 

based on greenhouse gas emissions, strategies adopted, or 

reductions projected in their first SCSs. 

ARB staff would consult with the MPOs regarding 

any changes in modeling tools, methodology, or assumptions 

before recommending updated targets. This is something we 

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would do with other MPOs, as appropriate. 

For the six smaller MPOs, staff would return to 

you in late 2015 with recommended targets, which would 

apply to their second SCSs scheduled for adoption 

beginning in late 2016.

--o0o--

MANAGER ROBERTS: This table is simply a summary 

of the update schedule that I just described for the three 

different groups of MPOs. Staff would return to the Board 

in 2015 with recommended target updates for the four 

largest MPOs and also for the six smaller MPOs. Staff 

would return to you in 2016 with target recommendations 

for the eight San Joaquin Valley MPOs. And this table 

just reminds you about the year in which those updated 

targets would apply.

--o0o--

MANAGER ROBERTS: Public discussion among MPOs, 

stakeholders, modeling experts, and state agency partners 

have been important to making progress on complex issues. 

Several topics have been identified by ARB staff and 

stakeholders as important for discussion and collaboration 

over the course of the next two years as targeted are 

being updated. 

These include: Identifying better tools and 

methods to account for inter-regional travel and explore 

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methodologies that could be used for future SCS 

development; working with MPOs to establish more 

consistency in the factors used to develop key 

assumptions, including auto operating costs and socio 

economic forecasts, which are fundamental inputs to their 

regional travel models. 

We would MPOs to increase consistency in their 

model validation and peer review processes and develop a 

more standardized set of Sensitivity tests that MPOs would 

conduct for purposes of ARB's technical evaluations. 

We would also want to strike the appropriate 

balance between encouraging innovative technology measures 

as a means of achieving emission reductions, and 

emphasizing the importance of land use and transportation 

strategies in an SCS. 

We would also facilitate a discussion of best 

practices and lessons learned for SCS development and 

implementation, ranging from procedural practices such as 

public participation strategies to the use of innovative 

land use and transportation strategies. 

We would also encourage the development and use 

of tools that would enable MPOs to quantify or estimate 

the co-benefits of sustainable community strategies. 

ARB staff will continue to periodically 

facilitate discussions on these focused topics with MPOs, 

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stakeholders, appropriate state agencies, and the public. 

To maximize the effectiveness of these discussions, staff 

will invite appropriate technical experts who can 

contribute to greater understanding of the issues. And 

staff intends to ensure representation from large and 

small MPOs.

--o0o--

MANAGER ROBERTS: In closing, our focus should be 

on SCS implementation to ensure that the extensive 

planning work done so far results in real emission 

reductions. 

MPOs and local governments need sufficient 

resources to invest in planning and project development as 

early as possible to enable the regions to achieve their 

2020 targets and put them on the path to achieve their 

2035 targets. 

The consultative process used for initial target 

setting was useful to demonstrate the range of possible 

CSC strategies and potential emission reductions possible 

from those strategies. Staff will work with MPOs 

throughout 2015 to encourage innovative approaches to the 

development and testing of scenarios and strategies and to 

maximize potential emission reductions and co-benefits of 

future SCSs. 

Recommended targets will be presented to the 

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Board for these three groups of MPOs in 2015 and '16 for 

your consideration and adoption. 

ARB staff will work with MPOs to ensure that 

recommended targets reflect a sustained effort to reduce 

greenhouse gas emissions and that emission reductions 

continue to grow over time through 2035 and beyond. 

Thank you. That concludes staff's presentation. 

I'm happy to answer any questions. 

CHAIRPERSON NICHOLS: Questions before we go 

ahead. 

BOARD MEMBER GIOIA: A question. I'll hold my 

comments until later. 

Having been involved in the Bay Area SCS with the 

timing, I wanted to be clear. The chart that shows -- 

this will help me in my comments later on when I listen to 

the speakers. I guess it's timing updates, slide 11. 

So just to help, the second SCS is due different 

dates for different regions or all the same? So explain 

the dates they're due. I think it's 2017 in the Bay Area, 

the climate option deadline. So just to be clear, because 

that effects our timing here. The four largest MPOs, are 

they all 2017? Could you just tell us when they are? 

MANAGER ROBERTS: For the four largest MPOs, they 

go in order for -- I'll just stick them in chronological 

order. There's four large MPOs. 

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SANDAG adopted their first SCS in 2011. Their 

second one would be in early 2015, and their third SCS 

would be adopted in early 2019. 

If you take SCAG and SACOG, they're about the 

same schedule. Their first SCS was adopted in 2012. 

Their second SCS would be adopted in 2016. And the third 

one would be adopted in 2020. 

For MTC, the Bay Area, their first RTP SCS was 

adopted in July of 2013. The second one would be adopted 

about midyear 2017. And the third one would be adopted in 

2021. That's assuming they're follow for the update. 

BOARD MEMBER GIOIA: Is there a pattern on the 

San Joaquin? Are they all about the same? 

MANAGER ROBERTS: For the San Joaquin Valley, 

they all adopt in the same year -- maybe different months, 

but all the same year. 

BOARD MEMBER GIOIA: What were the years? 

MANAGER ROBERTS: It was 2014, this year. Their 

second SCS will be adopted in 2018. And their third SCS 

will be adopted in 2022. 

BOARD MEMBER GIOIA: Okay. And the six smaller 

ones are all the same years? 

MANAGER ROBERTS: They're not all the same. 

CHAIRPERSON NICHOLS: Okay. This helps me 

understand. For some reason, I thought all of the were 

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was 2017. But this helps frame this a little bit. 

Thanks. 

CHAIRPERSON NICHOLS: We have 16 witnesses who 

have signed up, beginning with Mike McKeever, followed by 

Ahron Hakimi, Kern COG. 

MR. MC KEEVER: Thank you very much, Chair 

Nichols, members of the Board. 

I think you're going to hear mainly common ground 

amongst the diverse MPOs that are here today, but I want 

to be clear that my remarks are for sure related to the 

four largest MPOs. I don't want to inadvertently say 

something someone doesn't agree with. 

We're very appreciative of the staff 

recommendations in terms of the approach to both the 

second round and the third round targets. It's a good 

example of the great working relationship we've been able 

to form or you've been able to form with us at your Board 

level and your staff level. 

It is really critical to us that we have the 

elbow room to focus on implementation. We hear you see 

that's good news. You actually do want these plans 

implemented and the benefits to the plan delivered. We 

think this approach gets us there. 

We are also supportive of the notion -- very 

supportive of the motion of starting the update to the 

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third round early. And the question about the timing gets 

you into complicated issues. I do, unfortunately, need to 

just tell you that there are some practical issues 

associated with the timing. I don't want to take time 

today to go into them. We would very much like to get 

with your staff and roll up our sleeves and work for 

solutions to that. 

The big four are so concerned about the timing 

issue that we are strongly thinking of using this is an 

impetus to go to the federal government for permission to 

get all of ours on the same time frame. And there may be 

MPOs in the state that want to do that, too. So that's 

the nature of the discussion that we want to have. 

We also understand, I will say on the record, 

that the unstated context of that early start is that the 

third round in, what meeting the ambitiously achievable 

target may mean may very well be a harder target to meet 

than it did in round one. And we get that and we're where 

we trust you to work with us to see if there are feasible 

ways to do even better. 

I do would like to make a couple of related 

comments, Chair Nichols, if I could related to the ongoing 

cap and trade issue, because I do think it relates. We 

have for a long time been hoping that the cap and trade 

money would help us to implement the plan and even deliver 

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savings beyond what are in our first round plans. 

Unfortunately, I'm not particularly optimistic 

given the state of the draft guidelines for the 20 percent 

of those funds that relate to the affordable housing 

sustainable communities strategy that we are going to get 

there. 

The 375 is a great example of at least one 

version of the healthy partnership between roles of 

states, regions, and local governments where the state 

sets a very clear performance standard. The regions and 

their cities and counties have virtually complete 

flexibility to figure out how to meet that standard given 

the realities of our local regions and then -- 

CHAIRPERSON NICHOLS: Go ahead. I'll let you 

finish up. 

MR. MC KEEVER: I'll try to be quick. I do have 

a couple points I would sure appreciate time to make. 

And then you with your technical staff and 

ultimately your Board have the capacity to hold us 

accountable for whether our unique ways of meeting that 

clear performance standard are real or whether we're 

fudging the numbers or not doing it well enough. That is 

working. That model is working. And we are together very 

much in a race to the top situation where we're getting 

better and better at delivering benefits to the planet. 

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I'm really worried at this point that the cap and 

trade at least in year one is the reverse of that. There 

were more silos in the statute than we had hoped for. But 

they're workable. 

What's happening in the draft guidelines is more 

and more silos are being created and categories beyond 

what are required by the statute. And they're serving 

many totally legitimate public policy interests. But 

every new category that's created and new quota about X 

percent of the money has to be spent here and here reduces 

the power of the greenhouse gas emission reduction 

imperative, which is the only point of cap and trade, 

which is to take a very substantial sum of money, we hope, 

and deliver the very most savings for the state that is 

possible through that pot of money. Ad we don't think the 

track it's currently on is serving that interest. 

We are concerned that a lot of knowledge and 

staff capability that exists throughout the state in the 

18 MPOs and in the rural counties is not looked on as a 

resource that will be beneficial and help the state to 

accomplish that. And we're concerned that the 

prescriptive standards are so tight that it's even going 

to limit how many proposals you get, let alone encourage 

the most innovative, creative, and productive proposals to 

come in the door. So we are working on that. It's not 

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done. 

The one idea I want to close with is that in 

addition to this process the SGC is running, you, of 

course, have a major role in the greenhouse gas 

determination of what the benefits of the projects are. 

And in addition to the work we're doing on the SGC side, 

we would offer to you that we can take our good 

partnership that's been created under SB 375 and work with 

you just on those technical computations to document what 

the savings are. And we have very smart modelers who know 

these regional plans, who will know where the high impact 

leverage points are that help to get this to a strategic 

level and a maximum bang for the buck level. And there is 

no need to go into details here. But that's just a 

concept, Chair Nichols and others, that I would like to -- 

we would like to explore with you. 

CHAIRPERSON NICHOLS: Thank you. 

BOARD MEMBER GIOIA: I have a quick question. 

So one of the issues that came up in the Bay Area 

in the presentation that we received from the Strategic 

Growth Council and the guidelines came out is that the 

Council of Governments or the MPOs themselves were not 

eligible to apply for the SCS funding -- cap and trade SCS 

funding. And there was an open question of whether the 

local air district could apply. The belief was they may 

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be able to. 

So I would be interested to hear when the COG 

folks come up, just their thoughts on that. Cities and 

counties can apply. And there was this discussion that 

the cities and counties sort of in conjunction with some 

blessing from the COG, but that's unclear. Because my 

original thought was maybe the COGs were going to be 

eligible or the MPO. But that appears not to be the case. 

So it would be interesting to hear briefly each 

of their thoughts on that, because that's a key issue 

about how the money is spent. I don't know if there has 

been a final determination whether the local air districts 

are eligible to apply. I don't know if our staff or legal 

staff -- but whether we understand whether they can or if 

there is any new information on that. 

MR. MC KEEVER: I'm going to let others in our 

team respond to that. 

CHAIRPERSON NICHOLS: Yes. We'll hear I'm sure 

from the other MPO directors. Thank you. 

Staff, do you have any comment on the eligibility 

issue? We've been looking at these guidelines to the 

extent they are written in a language one can read. 

BOARD MEMBER GIOIA: Whether local air districts 

are eligible to apply. 

MANAGER ROBERTS: I have looked at the draft 

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guidelines. They're not final yet. The emphasis is on 

construction of residential projects and other 

infrastructure. So the emphasis for eligible applicants 

is local governments. And I do not recall seeing air 

districts in the list of eligible applicants. 

BOARD MEMBER GIOIA: It was an open question 

about that. But so we need to get that. 

CHAIRPERSON NICHOLS: They're still in draft form 

so comments can be submitted. 

MR. MC KEEVER: As I leave, a final thought is 

one way to fix -- the sum of the really are the impression 

of the calendar and the fact this program is scheduled to 

be rolled out in a blink of an eyelash. And if there was 

any way to combine the first and second founding rounds 

into a consolidated round and buy another six month's 

time, I think a lot of good would come from that. I do 

understand that that has been considered and not supported 

today. But this is really important. And so it may be a 

hail Mary pass, but sometimes a hail Mary pass works, 

Chairman Nichols. 

MR. HAKIMI: Good morning. I'm Ahron Hakimi, the 

Executive Director of the Kern Counsel of Governments and 

also the Chairman of the San Joaquin Valley MPO Directors. 

Madam Chair and Board members, thank you and your 

staff for all the work with Kern and the other San Joaquin 

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Valley MPOs in their review and development of the SCSs 

and all the work over the last 20 years that have resulted 

in huge improvements in the air quality in the San Joaquin 

Valley. We look forward to a continued partnership. 

The San Joaquin Valley Policy Counsel, a 

Committee consisting of two local elected officials from 

each MPO region, voted unanimously to recommend any 375 

target update not be implemented until the third round of 

SCS development. This action recognizes the need for the 

second round of SCS development to focus on implementation 

of the ambitious strategies contained in the first round 

SCSs. 

Those SCSs reflect ambitious new strategies that 

require collaboration with the cities, counties, and 

transit operators within each MPO region to successfully 

implement. Without implementation of the strategies 

within the SCSs, no additional greenhouse gas reductions 

will occur from SB 375 planning efforts. As an example, 

Kern received over $8 million from bike and ped projects 

during the first year of implementation of the CTC's new 

ATP program. $8 million represents 20 percent of the 

funds we projected to receive over 26 years. This is 

great news. 

We have embraced the new ATP program by 

submitting quality applications for reserving projects in 

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mostly disadvantaged areas. These projects, as you know, 

take years to develop as most infrastructure projects do. 

Give us time to build these types of projects and 

time for our residents to use the project before setting 

and implementing new targets. Davis did not become a 

bike-friendly city in five, six, or eight years. It has 

taken decades. 

We are on the cusp of a technological break 

through that will radically shift our investments in the 

San Joaquin Valley in conventional transit. I believe 

that Professor Sperling is correct in his statements at 

prior meetings that smart-phone based ride sharing or car 

service aps may fundamentally alter how people move in our 

communities over the next decade. Please give us time to 

see how this plays out before we come back to you with a 

plan that proposes more investment in possibly outdated 

technology. 

And finally, the first round of SCS development 

was a learning process statewide. Please give us the same 

consideration that you give the four largest MPOs and the 

targets should not take effect in central San Joaquin 

Valley until our third round, which would be 2018. 

Thank you, Madam Chair. 

CHAIRPERSON NICHOLS: Thank you. 

Next is Andrew Chesley. 

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MR. CHESLEY: Thank you, Chair Nichols, members 

of the Board. 

I, too, would like to offer my thanks to your 

staff and to this Board. This Board has been a particular 

support to all of us in terms of recognizing the need in 

terms of implementation of investment in tools and 

strategies and methodologies that can bring about -- 

improve that work from. 

We want to thank you for the investment that you 

have made in MPOs and particularly in the San Joaquin 

Valley. 

But this is only the beginning. One of my 

partners in the San Joaquin Valley, we urge support the 

Board to look at the implementation of our SCSs and to 

stay the course similar to the four largest MPOs and 

recommend that the update targets occur in the third round 

of the regional transportation plans for the RTP and SCSs 

that come forward from the San Joaquin Valley. 

We think it's appropriate, especially when we 

talk about the smallest MPOs in the state, the MPOs with 

the least amount of resources, and MPOs that went through 

first round and had some of the greatest challenges in 

terms of the experience in doing so through the 

methodology that has been adopted, the tools we had in 

place, the data that was available to us. We believe the 

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following same pattern as the four largest MPOs makes 

sense. 

I support the comments made by Mr. McKeever in 

terms of that third round, making sure we're thinking 

about it as early as possible in terms of moving forward 

with target development to levels like, but looking very 

specifically to the third round. 

I want to assure you that in the San Joaquin 

Valley we are breaking a sweat. I can speak on behalf of 

the San Joaquin Council of Governments in Stockton. Three 

northern valley counties are set to coordinate a joint 

target and cooperate in the development of a group 

possible under SCS strategies for the next round of the 

RTP. That has been discussed at each of our MPOs. 

We have agreed with the Metropolitan 

Transportation Commission to adopt similar assumptions to 

directly address the inter-regional issues and travel 

between our two regions. 

We have moved forward to supplement the state's 

active transportation funding with 150 percent increase 

over that using our regional dollars to match that and to 

take steps right off the bat in terms of implementing our 

SCS strategies. 

And when it comes to land use planning, the 

Stockton General Plan is in the process of being updated, 

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in large part because of scenarios that was developed as 

part of the SCS. Stockton is looking now forward to 

pulling back on some of the boundaries in their general 

plan, looking to go up and maybe not as large as that plan 

originally is as a way to address the SCS. 

I encourage you to continue to work with us in 

terms of the implementation on this. That is the key 

component of the next round, that experience in 

implementing the adopted SCSs by the MPOs. Thank you. 

CHAIRPERSON NICHOLS: Mr. Stoll. 

MR. STOLL: Thank you. I'm Charles Stoll and 

most people know me as Moggs Stoll, the Planning Director 

from the SANDAG. And we have had the distinct pleasure to 

go first in the SB 375 regional plans. And we will have 

the distinct pleasure to be first on the second round of 

those plans in the fall of 2015, just barely a year away. 

I'm here on behalf of Larry, our Executive 

Director. Our Board meeting happens to be this morning, 

so he couldn't be here. 

We definitely appreciate the support we've gotten 

from the Air Resources Board and the staff. We've worked 

very closely together on both the original -- the first 

plan under SB 375 and now that the first got in the second 

round. We agree with the targets being looked at and 

applied to the third round because frankly it's too late 

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for us to get target set. We're well on our way. We're 

less than a year away from approving our second plan. So 

if targets were to be set tomorrow, it would be too late 

for us to really implement them into our plan to begin 

with. 

I want to reiterate what you've heard here 

already about the importance of focusing on implementation 

and the funds needed for that implementation. We feel 

that we certainly agree with that in San Diego. From our 

perspective, there is a lot of consensus on our plan that 

we have that our horizon year is 2050. And the plan 

itself includes transit components, active transportation 

components, technology components, all of those. There is 

a lot of consensus. Where we hear frustration is how long 

it's going to take to get there. Our plan goes out to 

2050. And we're getting a lot of pressure, why can't you 

bring these great projects forward. And the fact of the 

matter is the process is required to be fiscally 

constrained. And there are fiscal realities. 

In our region, we are committed to exploring yet 

another regional funding source. We already have a 

half-cent sales tax measure that goes out to 2048. We're 

committed to look for more than that. We really need to 

focus in our region and I think throughout the state on 

the importance of operations for transit. Sometimes it's 

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easy to find the capital dollars to build a transit 

facility, very difficult to find a sustainable source to 

operate it. So that's important. 

And when the discussion before was about the 

ability for MPOs to apply for cap and trade funding, we 

build projects at SANDAG. We build all of the transit 

projects in the region. Our Board has made a $200 million 

commitment the first ten years to build out our active 

transportation projects. So that's a very important issue 

to us. 

I just want to end with we also very much support 

the ideas that were put forth by Mr. McKeever. And thank 

you very much for the opportunity. 

CHAIRPERSON NICHOLS: Thank you. 

Rebecca Long, followed by Heather Adamson. 

MS. LONG: Good morning, Chair Nichols, members 

of the Board. Rebecca Long with the Metropolitan 

Transportation Commission here on behalf of Steve 

Hemminger, who is out of the country right now. 

I, too, would like to thank the staff for their 

very thoughtful presentation. We are very much in support 

of the recommendation as far as starting on the targets in 

2015 and then having those be effective in 2019 for the 

big four MPOs. 

We think it's great that the staff have really 

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emphasized implementation. That is key. This is largely 

a planning exercise that we're doing in the SCS. But what 

really matters is implementing these improvements and 

achieving the greenhouse gas reductions. 

And along those lines, I would just mention, you 

know, we talked in the presentation about the regional 

transportation plans being financially constrained. And 

they are, which sort of then asks the question why are we 

talking about necessary funding? Well, within that 

financial constraint, there is still assumed new money. 

In fact, MTC assumed hundreds of millions, if not 

billions, when you take the entire 25-year time frame of 

the SCS and cap and trade funding, as well as other new 

revenue sources. So to realize the targets in our SCS, we 

need to attain that new funding. 

So just looking at what the Legislature has 

thankfully done with cap and trade funding and this new 

program, it is a great opportunity. And I would like to 

align our comments very much with those articulated by 

Mike McKeever. We are very concerned about the draft 

guidelines. We think they kind of tie the program up in 

knots. And we'd really like to see some support from you 

all in expressing the importance that this program was 

designed to be an SCS implementation tool. So above all, 

that's really what it should be targeted towards is 

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achieving the implementation of these plans at the 

regional level. 

So that's really the emphasis I wanted to provide 

today. And just thank you very much. 

BOARD MEMBER GIOIA: I had a question. So I know 

there was a lot of discussion when we adopted the plan in 

2013 sort of collective Bay Area plan about the estimate 

for cap and trade revenues that was incorporated. And I 

know a lot of folks, including myself, thought that was 

maybe a bit too generous of an assumption. 

So you raise an interesting point which may be 

applicable obviously to all the plans is that the 

assumptions of reaching the goal are linked to a certain 

assumption about how much cap and trade revenue would be 

received. I'm not sure if every plan is similar. It may 

not be -- every plan may not be similar. But if those 

plans that are, that's an important factor to understand 

or there needs to be another source of revenue to build 

out the projects or the environmental strategies that are 

needed. 

So this isn't the first time I heard that linkage 

mentioned about the goals and the assumptions. And I 

don't know from the staff, did some of the -- all of the 

SCS plans rely on a certain amount of cap and trade 

funding? Because I think that was somewhat controversial, 

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the dollar amount that was put in this for the Bay Area. 

And can you tell us, did all of them rely on sort of an 

assumption on a certain amount of cap and trade funding? 

MS. LONG: Not all of them relied on cap and 

trade funding. I cannot tell you how many did rely on it. 

BOARD MEMBER GIOIA: I'm just thinking what that 

means as we think this through. I don't have an answer. 

But I just want to draw attention to that. 

CHAIRPERSON NICHOLS: Thank you. 

Heather. 

MS. ADAMSON: Good morning. My name is Heather 

Adamson. I'm the Planning Director for the Association of 

Monterey Bay Area Governments, or AMBAG. We are one of 

the six smaller MPOs in the state. I'm here representing 

Mora Tumi, our Executive Director, who had a conflict 

today. 

And I can understand the need to update the 

targets as we move forward with developing future SCSs. 

While as a smaller MPO with very limited resources we 

would have preferred to wait until the third round of SCSs 

like the rest of the state so we can focus on 

implementation, we can't accept ARB staffs recommendation 

to update to our targets the second round SCSs. However, 

we encourage ARB to maintain flexibility in the 

target-setting process. 

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Ongoing collaboration with all of the MPOs is 

critical during this target-setting process. And we 

appreciate that ARB is willing to add a representative 

from the smaller six MPOs to participate in the roundtable 

stakeholder meetings moving forward. 

As I mentioned, this is one of the smaller 

regions without any self-help funding. We have very 

limited resources to implement the types of projects and 

programs that provide GHG reductions. 

Absent these resources, it is hard for us to meet 

our sustainability goals. We encourage the ARB Board and 

other State agencies to provide funding to the regions to 

help us implement our SCS and to provide the GHG 

reductions mandated in SB 375. Thank you. 

CHAIRPERSON NICHOLS: Thank you. 

MR. IKHRATA: Good morning, Chairman Nichols, 

Board members. Welcome to the SCAG region. Thank you for 

allowing me to speak for a few minutes. Couple things. 

One thing is I agree with everything that Dean 

said, my brother, Mike McKeever. I second everything he 

said. 

I also want to thank you specifically, Chair 

Nichols, for hearing our voice. You didn't have to, but 

you did. 

We, at least the four large MPOs, work together 

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very hard with the lot of resources to develop plans that 

actually mean something, that hopefully one day this will 

be real. And we actually do have a lot of good stories to 

tell about how this plan are moving. In the last three 

months in the SCAG region, over $200 million from the 

Transportation Commission and from the regional program 

that SCAG is in has been allocated for projects -- for 

active transportation projects. SCAG put about 25 million 

of its own money to give planning guide to cities and 

counties to move SCS forward. We happy with that. 

One thing I want to emphasize and my Commission, 

the cap and trade is an opportunity to tell regions to 

work with cities. These plans are real. And it is 

important to remember that cap and trade should be 

directed to our reduction of greenhouse gas emissions. 

I'm very concerned, like my colleagues, to get 

the date right. And I think people are watching to see 

how we move this funding and watching the process itself. 

One thing I appreciate about you and the Air 

Resources Board and your staff is we partner. We actually 

have a meaningful partnership to put together the plans. 

And I would -- my advise to the State agencies in 

charge of this is to reach out to partners. While the 

staff has said we should coordinate, coordination could 

mean a lot of things. I would argue that it is to the 

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best of the plans to have regional and state coordination 

moving forward these funds. And right now, the silos and 

the kind of things that these guidelines go into is 

troublesome actually. 

We are, as you know, going to move this plan as 

many of you said before with this determination. We're 

not only relying on fixed guide ways. We're not only 

relying on technology. We're not only relying on the 

capacity, but we're relying on a mix of things to move the 

plans forward. And we look for partnership. And at the 

end of the day, the state is in charge and we respect 

that. But we would like to have a true partnership to 

move this forward. Thank you very much. 

CHAIRPERSON NICHOLS: Thank you. 

Carlos Yamzon. 

MR. YAMZON: Good morning, Madam Chair, members 

of the Board. 

Carlos Yamzon, Executive Director for the 

Stanisluas Council of Governments, one of the MPOs in the 

San Joaquin Valley. 

I don't want to belabor this, but many thanks to 

the ARB staff and to the Board for consideration of the 

valley in this matter. 

I think over the last two years has been a real 

learning process for us in the trenches. Did I say 

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trenches? I'm sorry, the valley. It's the philosophy of 

intent versus the political and technical. There are some 

key differences there. Those are the challenges that we 

have in the valley, merging the political and technical. 

I think a point was brought up by the staff in 

presenting the time lines and having consideration of 

different time lines because of policy and technical 

matters. So they're real. 

Locally, I think what we have learned is things 

like health, transportation, and land use are almost 

hiding in plain sight when you're trying to get that out 

to the population that's most effective and probably the 

least interested in the work we're doing here. 

But I think in doing that and engaging that 

health industry, we've learned a lot of lessons. And I 

appreciate the workshop that Professor Sperling actually 

had with us and taking things along with that, 

particularly in relation to health. 

And it's almost like as you learn as you go, we 

just got through adopting our SCS. And you almost want to 

start all over again because there are new things that 

come about that we get so excited about. I want my staff 

to update the RTP SCS on Monday, not necessarily in 

anticipation of the new targets, but because we just had 

such a good time doing it. 

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But if you've read your USA Today, that was 

probably left or not left in front of your door, Uber's 

one-shot deal. Related to Professor Sperling's comments 

regarding Uber. Uber is in the valley. It's in Modesto. 

They're actually using it to get the vaccine to people 

that can call and use the application. These are 

technologies that we're talking about. The bureaucracy 

and the government moves a little slower than technology. 

We have to catch up with this or get into the same time 

line. I think that's the challenges that we're facing. 

So we appreciate your consideration of updating the 

targets and recognizing the challenges that we have. 

And that timer is distracting, but I'm going to 

stay on time. 

But it's real and we accept that challenge. We 

appreciate all the work. And I think we have good 

intentions, as we all do. And I appreciate your time and 

your corporation. Thank you very much. 

MR. HIGGINS: Good morning. I'm Bill Higgins, 

Executive Director of the California Association of 

Councils of Governments, which means I get to represent 

the little ones and the Center Valley and the big four and 

provide the unifying voice. 

And I think when you got the presentation from 

our Executive Directors in January, you heard we're very 

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pleased about the progress of our plans. In fact, I've 

often said that our SCSs were more about community 

conversation change than climate change, because it 

engaged people in the discussion of co-benefits and the 

discussion of health in addition to GHG reduction. 

But the plans and the mandate is to focus on GHG 

reductions, and we appreciate the focus on implementation 

in this report. And I want to pick up on where Supervisor 

Gioia made on the connection between funding and the 

ability to achieve targets. 375 is an input/output 

device. The more money you put in, the more that projects 

that will be in our fiscally constrained plans and the 

higher targets we can achieve. 

You were aware of that I think when you set the 

targets because I have the phrase tattooed on my body in 

resolution that says that you committed to "identify, 

pursue, and secure additional funding sources for the 

successful implementation of SB 375." That's in the 

resolution. You can go read it. 

And since that time, there's transportation 

funding has shrunk, redevelopment has gone away, and there 

is this new source of funding called cap and trade. And 

you heard some frustration about it. Cap and trade is 

going to do some very, very good things because it's going 

to award some specific projects. But if I'm a regional 

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transportation agency looking at achieving a higher 

target, I can't program a project -- I can't assume that a 

project is going to win an SGC grant five years from now 

to program that project. 

If we're going to be successful, we need a set of 

funding that we can program so you can hold us to account 

on that and we can continue the good working relationship 

we have. 

So when you hear our frustration on that 

particular issue, it's because we don't think it's the 

most effective means of funding in order to achieve the 

goal that you and we share, which is reducing GHGs by high 

targets. The last thing, because I did listen to 

everything Supervisor Gioia said, is the question about 

who's eligible in the guideline is public agencies, which 

are COGs and everything. But there is also co-applicants 

which could be any subdivision of the state which would 

include air districts. 

BOARD MEMBER GIOIA: So you're saying that, for 

example, in the Bay Area Public Transportation Commission 

because it was discussed at a meeting, the Regional Joint 

Policy Committee meeting that MTC would not be eligible. 

Has MTC determined it is? 

MR. HIGGINS: Actually, there needs to be a 

clarification in the language. It's in my list of 

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comments. It does say a Council of Governments is 

eligible to apply. I believe when they wrote that 

language they were thinking that all MPOs to are COGs. 

That's not the case. MTC is a regional transportation 

planning agency. 

BOARD MEMBER GIOIA: That would mean Association 

of Bay Area Governments was eligible and their 

understanding was they were not? 

MR. HIGGINS: According to their language, they 

are. 

BOARD MEMBER GIOIA: The position of the COGs is 

the Council of Governments is eligible? 

MR. HIGGINS: According to the words of the 

Strategic Growth Council, yes. And this isn't unusual for 

COGs. I think you can go to SANDAG in the audience or 

many of the other regional transportation planning 

agencies that are also service providers or project -- 

they undertake projects. And they award themselves funds 

through a competitive process with the process controls 

because they're a part of the solution in their regions. 

And that's what the local governments -- 

BOARD MEMBER GIOIA: That would make air 

districts eligible. 

MR. HIGGINS: Under air district in the current 

guidelines, it's not defined as a public agency?

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BOARD MEMBER GIOIA: I don't want to misquote it, 

but the Executive Director of the Strategic Growth Council 

the day after -- two days before the guidelines were 

released was making a presentation in the Bay Area. And I 

believe the representation was that it was like ABAG would 

not be eligible. You were at that, weren't you? No. 

Maybe not. So anyway -- 

MR. HIGGINS: So to refocus, because I see the 

three right there, is we're interested in working with you 

on real long-term funding solutions so that we can 

identify, pursue, and secure additional funding sources. 

CHAIRPERSON NICHOLS: Absolutely. Well, there 

are two elements to this. One is the current allocations, 

which we all know are just a start. And the second is the 

longer-term picture. We're interested in both. 

Ms. Holmes-Gen. 

MS. HOLMES-GEN: Good morning. Bonnie Holmes-Gen 

with the America Lung Association of California. 

Really pleased to be here to be part of this 

discussion today. We care deeply about the SB 375 program 

and roll out. The Lung Association has been involved in 

the initial-target setting process, engaged in the 

regional processes, supported funding. We've been 

involved in developing our own research to try to pin down 

some of the health benefits as far as we can go with the 

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tools that we have. 

We're excited about what has been accomplished. 

We see tremendous potential for increasing the health and 

air quality benefits through SB 375 and with our upcoming 

ozone deadline and the need to clarify our path to 2020 

that the Board's plan to look at our mid-term goal 

setting. There is a lot of opportunity here I think to 

figure out what more can we get out of our 375 process and 

out of reducing traffic, reducing trips at the local 

level. 

There's been a lot of early successes, but we 

think there is a lot more to do to ensure that SB 375 

truly guides our land use and transportation decisions at 

the local level and reaches the potential. 

Some key items that we see are needed to move 

forward and really meet this higher level. Clearly, 

setting robust targets for 2035. Going boldly into the 

next round of target setting is really important to 

continue to drive innovation, commitment, and investment 

at the local level. 

We'd like to stand up for the schedule that's in 

the staff report. I heard some different opinions about 

it, but we think the schedule is a good start to look at 

seeing if we can set a higher level of targets for the 

valley for round two. 

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At this point, let's see what we can do if we 

have to go through this process of determining what has 

been done in the current plans. We have to understand 

where we are in terms of the current what can be achieved 

with the current plan. I understand that will contribute 

to understanding how far we can move forward. 

We really -- aside from robust targets, 

critically important, we need to nail down this 

co-benefits analysis. We need your help. We know that 

information about reduced health costs is critically 

important. How can we work with you to finalize the 

tools, identify funding and resources needed, get us more 

assistance to local governments and NPOs in using those 

tools, help spread good information about best practices 

is another key effort. 

We really want your leadership and direction in 

spreading important innovations, looking at project 

performance assessment, how well are our current 

investments aligned with our goals under SB 375. 

Finally, funding, that's another huge area and we 

look forward to working with you on cap and trade. The 

bottom line is America Lung Association and health 

communities are strongly invested in moving forward to 

push the envelope in improving health benefits and air 

quality benefits throughout SB 375. 

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Look forward to working with you. 

CHAIRPERSON NICHOLS: Okay. Thank you. 

Is Joe Lyou here? 

MR. LYOU: Hi, Chairman. Thank you for having me 

again, and members of the Board. 

Joe Lyou with the Coalition for Clean Air. I 

think yesterday the message on the zero emission vehicle 

program to stay the course, the message today is business 

as usual isn't going to get us where we need to go. 

And also picking up on a metaphor from yesterday, 

if all your programs are a turkey dinner, this one may be 

the mashed potatoes. It's a little squishy. 

I think that the really encouraging thing is I 

hear consensus that prior to SB 375, we didn't -- we have 

planning agencies and local government officials really 

buying in and supporting the idea that they need to do 

something for the climate, for the environment to protect 

the planet. And that engagement didn't happen until we 

had SB 375. I think we had a consensus on that. 

What worries me is that I see us going in 

different directions on whether there should be aggressive 

targets and obligations versus the argument that we don't 

have the funding. We can't move us forward. And that 

shouldn't be allowed to divide us. 

I think that we should pursue a framework and a 

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process, a what if exercise, of if money wasn't the 

impediment, let's take a look at that. Now, you said the 

targets the way you have to through the statutory 

requirements of the financially constrained processes and 

all that. But if you do the what if exercise and you say, 

what if we had unlimited funding to do all the things we 

needed to do to reach our climate goals to attain our 

clean air standards, what would that look like? 

And by that process, I think we can avoid the 

division, come together in consensus and get creative 

where we are going to find the funding sources. Quite 

honestly, I think we all recognize that the amount of 

money it's going to take goes way beyond what cap and 

trade can provide. 

So I think we have to be honest about that. I 

think that in the end, we all recognize that the low 

hanging cranberries have been picked. We need to reach 

for the high ones and we need to do it together. Thank 

you. 

CHAIRPERSON NICHOLS: Coming from the east coast 

myself, I'd like to comment that cranberries grow on low 

bushes. But other than that, your analysis is perfect. 

Okay. Mr. Raya. 

MR. RAYA: Good morning, Chair Nichols and 

members of the Board. I'm representing Climate Plan. 

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Climate Plan and its partners are pleased with much of the 

staff report and with want to thank you for your 

leadership and continued commitment to the following four 

issue areas. 

First, analyzing NPO GHG targets to determine if 

they can actually achieve the AB 32 goals. And that they 

are actually on pace to meet these goals. This type of 

analysis can foster statewide dialog about what resources 

are needed to help with implementation. 

Second, identifying and spreading best practices. 

The SCSs have inspired a lot of innovation in communities 

across California and any effort to spread these best 

practices between regions and communities would be 

valuable. So we're happy to see that in the staff report. 

Third, quantifying co-benefits like health, 

affordability, job growth, and conservation will help 

communities achieve these goals because as we all have 

heard so often, what gets measured gets done. So we are 

really happy that that is also in the report. 

And then finally, regarding the GHG reduction 

targets in SB 375, we recommend keeping the focus on land 

use strategies and measuring our progress toward these 

targets. Any reductions resulting from electric vehicle 

infrastructure or new technology should supplement, we 

believe, not supplant the land use targets. 

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Again, thank you for your leadership in this area 

and we look forward to working with you. 

CHAIRPERSON NICHOLS: Thank you. 

Mr. Cazares.

MR. CEZARES: Good morning, everyone. Thank you 

for allowing me the time. My name is Fernando Cazares and 

I work for the Natural Resources Defense Counsel. 

I recently moved back to L.A. after nine years of 

living in San Jose and Washington, DC, where I either 

walked, rode my bike, or rode a public bus or train to go 

to and from work or to go to numerous happy hours and 

networking events. 

I sold my car when I moved to DC. When I looked 

at coming back to L.A, I thought about what are my options 

going to be? Am I going to have to buy a car? 

The last four days, I've done public transit from 

San Fernando over the 405 to Santa Monica. I expected 

much worse. It's actually been not as bad as I thought. 

It's been tremendous improvement, though I believe there's 

much more improvement to be done. 

I'm speaking to you today not only as a 

representative of NRDC but as a native Angelino and 

Southern California resident, and also an uncle of a nine 

and a seven year old who live in Bakersfield, California. 

I strongly ask you to take the following steps to 

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strengthen 375. Please set the targets strong enough to 

meet the state goals. We know what we need to do to 

mitigate the impacts of climate change. I believe that we 

should set the goals accordingly. Please identify and 

share best practices among regions. You're in a 

quarterback position to be able to see best practices from 

different regions. So please take advantage of that role. 

Please maintain the focus on reduced driving. 

Use me as an example, if you will. Electric vehicles are 

valuable, and I'm looking at them honestly. But we need 

to find ways to reduce the need to drive to just about 

anything for daily activity. And we need to find ways to 

measures the co-benefits of reduced driving. 

We cannot deviate from the critical intended 

impact of 375. We have to make specific and tangible land 

use and transportation policy improvements that will lead 

to significant reduction in vehicle miles traveled and 

sustainable development patterns. 

You should only give credit to action-oriented 

strategies and projects rather than assumptions on fuel 

demographic or economic trends and their related effects 

on greenhouse gas emissions. 

To close, we have an opportunity here in 

California not only to lead the nation in cutting 

greenhouse gas emissions and providing a model for the 

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nation, more equally important with 375 and AB 32 give us 

a chance to remake our communities and free our residence 

from gridlock on healthy air quality and toxic industrial 

land use while lacking economic potential to coordinate 

land use and improving our health. 

To paraphrase a book by outgoing President 

Francis Bernaky, SB 375 gives us an opportunity to -- SB 

375 is about the California we create and leave behind for 

our children, grandchildren, nephews and nieces. Thank 

you very much. 

CHAIRPERSON NICHOLS: Thank you. 

Mr. Moncayo. 

MR. MONCAYO: Hi. How are you? My name is Jaime 

Moncayo with the Leadership Counsel for Justice and 

Accountability. We've been working closely with folks in 

Kern, Tulare, Fresno and Merced on the SCS process. 

First of all, we'd like to thank the Board and 

the staff for the entire process. We appreciate your hard 

work and your willingness to collaborate with us. 

When updating, my comments are focused 

specifically in the value because that's where we do most 

of our work. We would like to take into consideration a 

couple things when you work on those targets. Primarily 

that the initial targets were placeholders. Always keep 

that in mind. 

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Remember that a review of the methodologies that 

are being used would be much more helpful in understanding 

what the targets should be in the future. We'd like you 

to take into consideration that for some of these MPOs, it 

was relatively easy to meet the targets. Very few changes 

were required to what they were already doing, which is 

not the purpose of this law or process. 

And also we would like that you would consider 

setting a very high standard so that the residents of 

these communities can benefit from the changes. 

As was highlighted by the process throughout this 

time for several MPOs, we'd like you to please clarify or 

set stricter guidelines for assumptions in regards to 

travel models, auto operating costs, or socio economic 

forecasts. Again, we want the process to bring real 

benefits and actually require work that has been done and 

can be done. 

Again, we also are very encouraged by the 

development of tools and models to assess co-benefits. We 

hope that with these new tools and models, we can see 

greater benefits to the communities throughout the region, 

especially disadvantaged communities so they can benefit 

from the SB 375 process. 

Likewise, on the matter of implementation and 

resources, which I know have been a big topic here 

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tonight, we'd like you to know that we are willing to help 

locating and securing these resources, and that we hope 

you make it a big commitment on everybody's part to make 

sure that a lot of these resources are directed towards 

disadvantaged communities. Thank you. 

CHAIRPERSON NICHOLS: Thank you. 

Christine Barker. 

MS. BARKER: Good morning, everyone. My name is 

Christine Barker. I work with Fresno Metro Ministry. 

Got up at 4:00 this morning to be with you all 

today. So thank you so much for taking the time and the 

effort to really implement SB 375. 

The plan that the staff has outlined in the staff 

report, it's a really good step forward. And again, the 

MPOs have done a lot of work to get us as far as we have 

so far. 

As an advocate, I've been working in Fresno with 

the Fresno SCS update process for the last two years. And 

I have been witness to the huge amount of learning that 

has taken place already and the amount of learning I have 

faith that we are going to continue to do together to 

really figure out how we can set targets and how we can 

make plans that improve the air quality in our region, 

which is desperately needed. 

I moved back after college, and I got asthma as 

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an adult, which I didn't realize was possible until I came 

back to the valley. So we really need strong targets. We 

need to remember the initial ones were placeholders. The 

next round should have stronger targets for the valley. 

We need to know what our benefits are. I think 

you've heard that already. We should be sharing what 

we're learning and making sure that the communication and 

the connection continues. 

Again, in places like Fresno, we really need the 

help to focus on reducing driving and creating 

infrastructure to be able to have transportation options 

that don't exist currently like they do in bigger cities. 

And we definitely appreciate that there is so 

much emphasis on addressing the technical issues and model 

assumptions and we want to make sure that that 

transparency continues and improves so we all know that 

we're all talking about the same thing. That will be 

great. 

And just to close, the valley serious issues 

require serious consideration. And we need to promote 

stronger strategies to achieve emission reductions, 

greenhouse gas reductions through land use changes. 

We have to change how we grow in the valley. 

Thank you so much for all your time and effort and 

leadership and have a good morning. 

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CHAIRPERSON NICHOLS: Thank you. 

Mr. Imhof. 

MR. IMHOF: Good morning. Peter Imhof from the 

Santa Barbara County Association of Governments. 

As much as SBCAG supports reducing greenhouse gas 

emissions and understands the vital importance of doing 

so, revising the SB 375 targets right now will not help 

reduce greenhouse gas emissions or move the needle one 

iota. It's the implementation of adopted SCSs that will 

achieve greenhouse gas reductions. 

A new target-setting process right now will 

require a huge expenditure, staff time and effort, both 

for NPOs and for ARB that could be better put to use for 

implementation. 

We appreciate the staff report's acknowledgement 

of the need for material support and funding to allow SCS 

planning and implementation. However, that support has 

yet to be made concrete, even through cap and trade. If 

you do decide to initiate a new target process now, then 

we request that new targets take effect for small MPOs in 

2018 consistent with the requirements of SB 375 and 

SBCAG's own update time frame so we're not hit with new 

targets exactly midway through our current planning cycle. 

Finally, if you use projected reductions in the 

first adopted sustainable community strategies as the 

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basis for the updated targets, then your request that you 

build in some flexibility to account for technical issues, 

such as changes in modeling tools or methodologies that 

could result in changes to the projected reductions. 

Thank you. 

CHAIRPERSON NICHOLS: Thanks. That concludes the 

list of witnesses that I have. So it's back to the Board 

for some discussion. 

Before we go too much further, I want to say a 

company many things. If you're here to give public 

comment on something other than this item, but just want 

to speak during the open comment period at the end, I 

would appreciate it if you would sign up with the clerk so 

we know how to plan for that. 

Back to this item though, I really would like to 

say a couple things. First of all, the staff report 

really was good. Our staff reports are generally good. 

But this is an excellent staff report I think in the sense 

that it lays out both technical and policy issues in a 

very clear and helpful way. And part of the evidence for 

that I think is the fact that we had such strong and 

positive input, not only from our partners but also from 

the community organizations who have been following this 

process most intently. 

And I really want to congratulate all of the 

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groups that came here to present testimony this morning 

and to urge us on in various specific ways. I hope you 

realize that you have had an impact. And if any of the 

funders of your groups are listening to this broadcast, I 

hope they're hearing it, too, because we really have come 

a long way over the last couple years. 

I do feel that we should explain a little bit 

about ARB's role in this funding issue. Not to be 

defensive, but just to be clear, we were involved in the 

preparation of the Governor's budget and the budget that 

the Governor submitted to the Legislature was 

substantially siloed I would say as a result of the 

process, because that's what tends to happen. And then as 

has been indicated, even beyond that, now that it's back 

with the various agencies, there were pressures to further 

came things up into small or different kinds of chunks. 

We are not members. ARB is not a member of the 

Strategic Growth Council. We don't have any direct 

responsibility for the guidelines or for allocating the 

funds. We're a sister agency. But we do have an 

opportunity to have input. 

And based on what I've heard today and the 

comments I've heard at least from a couple of people on 

the Board, I think it might be a smart idea for the Board 

to actually communicate in writing and not just informally 

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to the Strategic Growth Council about some of our concerns 

about how they are approaching the process. 

I want to be positive in supportive because it is 

the first time through maybe that Mike McKeever's comment 

that we should just punt for a while may end up being the 

wisest thing to do. But even if that happens, it still is 

going to be coming at us again before we know it. 

So laying out some of the considerations that 

people have pointed to here, particularly in terms of 

tying the funding to already adopted sustainable 

communities finance seems like sort of a no-brainer. But 

we're not there yet. 

So anyway, those are some sort of opening 

comments. And I'll go to Mr. Serna. 

BOARD MEMBER SERNA: Thank you, Chairman Nichols. 

I, too, want to thank staff for an exceptional 

staff report. And I also want to agree with our esteemed 

Chairman that I, too, agree that Mike McKeever is the dean 

of the MPOs. I've been fortunate also serving on the 

SACOG Board of Directors and was very involved with the 

development of our SCS. Great appreciation for his 

leadership and his thoughtfulness. And it's also 

reflected in today's comments. 

I'm glad that the Chairman opened up with the 

mild suggestion that that's what, in fact, it is to 

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perhaps communicate in writing to the SGC the fact the 

knowledge I would presume in that correspondence that we 

don't have -- we're not charged with the same 

responsibilities they are. But nonetheless, we do find 

this an issue that is important enough that we might make 

some respectful suggestions. 

Some of those I think were articulated quite 

clearly by Mr. McKeever and others, some other MPOs. The 

ones that resonate most with me are certainly trying to 

get our sister agency to think more clearly about 

performance standards versus prescriptive measures or 

implements. 

I think it's very important to understand the 

messenger here, which is the MPOs. The MPOs are the ones 

that quite frankly having served on the Board have that 

expertise. They have that knowledge base. They have the 

modeling and they do it well. And I know that's true 

across the state. There are certainly different levels of 

challenges from region to region. But I think it's safe 

to say overall it's at the regional level where that 

expertise is best applied and we have to take advantage of 

that. 

So those are kind of my thoughts. I would be 

curious to hear from other colleagues about the submission 

that the Chair has made. I think it's a very good one. 

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Not sure if we are capable of today or not of actually 

setting that in a motion, but if there is a will of 

someone to do that, I would be very supportive of that.

CHAIRPERSON NICHOLS: I'm looking at Lynn Terry 

and Terry Roberts and thinking they're quite capable of 

taking notes and putting this all into a good letter. 

BOARD MEMBER SERNA: Great. Thank you. 

BOARD MEMBER GIOIA: I think this has been a good 

discussion. And just to make sure I understand from the 

chart on the effective dates, which is why I wanted to 

know the dates of the plan. 

So for San Joaquin, the updated targets will be 

effective 2018, meaning for their second update; correct? 

I just want to be clear about that. I think it's 

important. 

I think it's important to continue to keep 

aggressive on the targets. And we realize that each 

region has tried to approach this in a unique way and at 

the same time I think we can provide the leadership to 

ensure the regions are pushing the targets some more 

aggressive. 

And frankly, I know having been through the Bay 

Area for those in other parts of the state, including 

especially in the San Joaquin Valley where they were not 

as aggressive on some of the measures, we can be helpful 

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in continuing to push that along and realizing that it's a 

challenge in obtaining funding. 

I do think one of the things we can do is be an 

advocate for more funding for the plans. And I do believe 

that there is this sort of belief that the cap and trade 

funding that will be the only funding to help. It will 

not. And the idea is that cap and trade is meant to 

leverage other funding sources as well. 

So I do think in our comments to the Strategic 

Growth Council -- we should clarify that the council of 

Governments are eligible, and because I think frankly a 

lot of the good work is going on on a regional basis. And 

while cities and counties individually will be able to 

apply, frankly, a lot of the effective programs are going 

to be on a regional level. And so I frankly think we need 

to sort of clarify that and be a voice on that issue. The 

regional agencies themselves can apply for the funding, 

Advocating for more funding, obviously there's 

only a certain amount in this year's budget. But for the 

future, getting back to the Resolution that was cited when 

we started this a couple years ago that we said, yes, we 

wanted to help the voice for funding to implement this 

these plans and acknowledging it's not just cap and trade 

funding. 

So I don't want to repeat what others have 

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mentioned. I know you've been through this in Sacramento 

as well. But agreeing with the Chair's comment, we should 

provide the comments back to the Strategic Growth Council 

on this as well. 

CHAIRPERSON NICHOLS: Great. Down at this end, 

I'll start at the far end. 

BOARD MEMBER MITCHELL: First of all, full 

disclosure, I'm a member of the Regional Council for the 

SCAG region. So I've worked through this process such as 

Supervisor Gioia has and Supervisor Serna I believe also. 

And I want to say that right now our first 

priority is implementing the SCSs that we presently have, 

and so all of us are diligently working on that. I do 

think that as we move forward to the next set of targets 

that we need to allow flexibility in that. What's so 

interesting about this -- and one of the speakers did 

mention this -- is that the regions across the state all 

have different deadlines for their RTPs and SCSs. So I 

think one of the things that they've talked about is can 

we go to the federal government and get a -- coordinate 

this so we all have the same deadline. I don't know if 

that's good or not, because it puts some real burdens on 

staff when they have to work all of them at once. 

But I also want to commend Terry Roberts on all 

the work she has done because she has this wonderful 

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demeanor that is so acceptable and easy to work with. She 

really is an example of the cooperative collaborative 

staff person. And that brings up the issue that Hasan 

Ikhrata mentioned, and that is how important it is to go 

into partnership and collaborate with the funding on this. 

What we have is a pot of money, sort of 13 agencies 

looking at that money. 

And my concern is that if we don't work together 

on this, you could see some duplication of effort and 

really lose of the most effective means of using those 

funds. So I think our letter to SGC on that would be a 

very good idea because we need to emphasize how important 

a collaboration is in this whole exercise. 

So I think that's -- the others have mentioned 

the problems, and I think flexibility and timing is key 

because every MPO and the big MPOs have different issues 

with their timing. And if our staff could listen to what 

their concerns are, kind of work with them on that timing. 

Sometimes the timing may just be a difference in 

step one, but we still get to the end date of target 

setting at the same time we would have gotten there 

anyway. But the announcement of the targets or the exact 

pinning down with what those targets are, that might be 

postponed, but still get at the end date at the same time. 

So thank you very much. 

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CHAIRPERSON NICHOLS: Great. 

BOARD MEMBER SPERLING: I have two thoughts. 

One is I support the general discussion on 

funding. In fact, I see SB 375 as having two roles. One 

is to provide an organizing framework for regions to 

actually pursue all the strategies they probably already 

want to do, whether it's dealing with infrastructure, 

livability, health, so on. But it does provide that 

structure. That's good. 

But then it does come back to where are the 

carrots and sticks, and the carrots especially. So the 

conversation of funding is good. 

Where I was a little unclear is there is this 

follow-up conversation about other funding. I've always 

had the thought in my mind that eventually we would be 

able to influence how the huge amounts of transportation 

funding is allocated in such a way that it would be 

restructured to reward the MPOs, the regions that do have 

strong SCSs, and are achieving their targets. And I've 

not heard any discussion on that. And I'm just -- so it 

seems like that's the really big opportunity. And really 

if anyone is going to champion that, it seems like that 

should be us. Of course, we can't do it ourselves, but we 

do have all the connections and so on. So that was one 

point. 

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And the other is what is the strategic plan for 

ARB in this area in terms of what it's actually going to 

do? Like, there is a mention of best practices. Is 

that -- I mean, I know this is kind of a new area for ARB 

and we're building the staff. Where are we going with 

this? To what extent are we really going to help and how, 

you know, these different regions and cities and counsels 

and so on? So you know, both of those thoughts I was 

interested in a response. 

DEPUTY EXECUTIVE OFFICER TERRY: On the best 

practices, that was something of course you remember from 

the original RTAC discussion, a lot of dialogue on it. 

And we have taken a first step, which is to use our 

wonderful U.C. system to have some white papers done to 

try to pull together the documentation empirical studies 

on the value of different strategies. I consider that to 

be the heart of the best practices effort. 

Now that we have a first round of SCSs to be 

implemented, I think looking at the common elements and 

using some staff resources to pull that information 

together as a starting point, here's what's been done so 

far. Here's the commonalities. Here's some ideas for 

future exploration that we might want to see in scenario 

analysis that we expect the MPOs to do in the next round 

would be an obvious next step that's directly linked to 

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the target setting. 

And then in addition in our research program, I 

think there's opportunities for us to expand on the 

in-house staff work as we move forward with the program. 

On the funding issue -- 

BOARD MEMBER SPERLING: Can I follow up on that? 

Have we gotten much explicit feedback from the MPOs and 

the local governments about what they think they need and 

what would really be helpful? Of course, it's different 

for the big MPOs versus others. I mean, what you said all 

makes sense. But what are we hearing? 

DEPUTY EXECUTIVE OFFICER TERRY: I'll ask Terry 

if she wants to comment on that. 

MANAGER ROBERTS: Dr. Sperling, Lynn mentioned 

the literature reviews that we've done over the past few 

years that resulted in over 20 policy briefs that describe 

different land use and transportation strategies, some but 

not all MPOs are putting into their SCSs. 

Just a couple weeks ago, was it early October, we 

held a seminar with Susan Hendy, who is one of the key 

researchers, to present the results of this information. 

And there was such a great amount of interest. We have 

people traveling from all over the state to come to 

Sacramento, observe that research seminar, and we have 

people e-mailing us from other states and other countries. 

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So we know it was widely noticed. 

And we know that MPOs are looking very carefully 

at these policy briefs to find out what strategies are 

being used in different cities, states, and what kind of 

effect it had. And what to be able to share the 

information from the these literature reviews to tell 

their local residents and communities about the benefits 

that could be accrued if certain policies were accepted 

and put into their regional plans. 

So I just wanted to mention that, and the fact 

that it's been widely noticed and appreciated. We have 

gotten thanks from many of the MPOs. I think the next 

step here is to make sure that the MPOs not just talk to 

us but talk to each other. And I think that's where we 

can play a roll of facilitating that kind of cross 

pollination which we have done to a certain extent which 

it comes to talking about regional scenario planning. 

BOARD MEMBER SPERLING: Could I ask that actually 

staff put together a real plan with activities and maybe 

it's a strategic plan with action items. 

And the reason I'm suggesting that is because 

most of us on the Board here are really interested in 

helping out. And we have lots of other connections in our 

various organizations. And I think if we had something 

like that, it would be very useful. And also it would be 

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a mechanism for us to give feedback as well as the MPOs 

and others to give feedback. I think we've reached a 

threshold where we've got to up the game and figure out, 

you know, what that really means. 

Is that reasonable suggestion? 

CHAIRPERSON NICHOLS: It's a perfectly reasonable 

suggestion. I think it should be fed into a process that 

Richard Corey I know has underway at the moment to work 

with all the deputies on some planning activities. So if 

you don't mind, I don't want to punt, but I also don't 

want to single this out as the only thing that needs some 

strategic planning. 

But I do think it's worthy of a separate sort of 

call-out-able, if that is a word, distinguishable set of 

activities. So I see a nod, but maybe you can add. 

DEPUTY EXECUTIVE OFFICER COREY: The message came 

through loud and clear. And we are -- Chairman Nichols is 

right on point in terms of the deputy team going through a 

broader planning process right now and to meet this 

discussion in open forum like we're doing and we can 

report back. 

CHAIRPERSON NICHOLS: I think this does have a 

public constituency. And so let's try to move it ahead. 

BOARD MEMBER SPERLING: Just that quick comment 

on money. What are we doing about getting other kinds of 

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money? Or what are the opportunities? 

DEPUTY EXECUTIVE OFFICER TERRY: Do I want the 

talk about money? No. 

BOARD MEMBER SPERLING: You're retiring soon. 

You can say anything you want. 

DEPUTY EXECUTIVE OFFICER TERRY: I think again, I 

totally agree with. You when we started this program and 

worked on targets and with the RTAC, we hoped that beyond 

the incentives imbedded in statute is that somehow we can 

take the transportation funding process, whether it's 

federal, state, or local to be an effective tool to make 

things happen on the ground. 

We have a lot going on in terms of partnership -- 

new partnerships with Caltrans and our state 

transportation planning agencies in multiple arenas. So 

if the Chairman agrees, I think this might be another one 

we add to that list of topics that we work with on the 

state funding structure. 

And ARB staff are clearly not experts on the 

funding process. I think we're going to need to learn in 

collaboration with our transportation agencies at all 

levels. 

I certainly hope that going forward as the 

federal transportation bills get reauthorization that the 

state of California and hopefully some of our other 

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partner states can influence the criteria for federal 

funding uses along these lines. So I think there is a 

clear will for the Board going forward with that. 

CHAIRPERSON NICHOLS: Okay. Thank you. 

Dr. Sherriffs. 

BOARD MEMBER SHERRIFFS: I think everybody has a 

expressed a lot and I would like to -- knock on wood. 

Comment was made about how this process at the 

local level community conversation changed. I think this 

has been an extraordinary example of community 

conversation change. This is not what I was hearing 

two years ago. And seeing all the players, the 

stakeholders, the entities here today having this 

conversation all in the same room really very similar kind 

of shared concerns. Very much on the same page about what 

people want to achieve. So can they add to those three 

Cs, civility, collaboration -- and I'm sure people can 

come up with others. So I'm glad to see you scribbling 

the -- drafting your letters here. 

CHAIRPERSON NICHOLS: Any other -- yes? 

BOARD MEMBER GIOIA: Just one comment. I think 

we have to think about our efforts in a way that provide 

the leadership direction to get the regions to continue to 

work and push the goal for one really important reason: 

For those of us who are involved in this in our regions 

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and it's different around the state, this was a really 

difficult thing to do. I can't impress on those of you 

who were not involved with developing these plans how 

difficult it is to change the community conversation on 

this. I think there was great leadership in various 

regions to move this. 

So to the extent that we can be helpful to the 

electeds in the regions, because frankly there was some 

very from strong people in the Bay Area who were 

threatened with recalls over this type of developing this 

plan. There was an amazing backlash by many communities. 

But in the end, sort of, it was developed and 

clearly there was some opposition from some sectors that 

continued. So I think our efforts should sort of 

provide -- I don't say the cover, but the ability for the 

local electeds to continue to push the envelope on this. 

And that's both from a standpoint of we talked 

about the best practices, what other regions are doing, 

how to access additional resources, and frankly to set the 

aggressive goals. Because sometimes it's easy. For those 

at the local level who are facing a tough situation, it's 

easier to say, the folks at the state are helping push us 

in this direction. So it provides a certain amount of 

justification for them to continue pushing the envelope. 

So just based on personal experience, I think as 

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a Board and an agency, we can be very helpful in that 

regard. 

CHAIRPERSON NICHOLS: I think so, too. That's 

great. 

Ms. Berg. 

BOARD MEMBER BERG: Thank you. Well, I really 

appreciate you sharing that information, Supervisor Gioia, 

because it really also speaks to the six smaller MPOs. 

And I think after yesterday's conversation, the smaller 

guys get kind of swept up into these programs. And where 

are the resources that are available for the six smaller 

guys? 

I think one of the things that struck me and 

especially on the last testimony was the fact that smaller 

MPOs don't have the people in the departments that are the 

planners and the target setters and then a separate 

department for implementer. It's all the same department. 

So when we look that they are going to be tasked 

with setting targets earlier than even the large people, I 

think that we've heard across the board here the 

importance of timing and flexibility. And I hope, 

Chairman, that we would be able to stay open to the fact 

that as we're looking to set new targets and aggressive 

targets, as Supervisor Gioia just mentioned, that we would 

be understanding that we're not inhibiting the six 

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smallest MPOs from really getting traction and getting 

meaningful successes moving ahead. 

And the other thing that really struck me is 

nobody on this Board represents or is participating with 

the six small people. We have wonderful participation for 

all the large. And so maybe that is another thing we can 

take a look at. Thank you. 

CHAIRPERSON NICHOLS: It's a challenge working 

with the diverse boards in the valley. Ms. Roberts has 

been spending a lot more time than she ever thought 

possible, I suspect, on the road working with the smallest 

of the MPOs. But it's really taxing our resources I think 

to do this effectively with all of them. 

A lot of good work is being done on the technical 

support side though, and that's probably the place where 

we actually contribute the most. 

So while I feel empowered to sign a letter on 

behalf of the Board making the points that I think all of 

us have stressed here, I'll send it to you anyway so you 

can all have a look at it. It sounds like a good step 

forward anyway. 

So thanks to everybody for coming and 

participating, all your hard work. And that I think is 

the end for this item. 

We do need to allow for a time for general public 

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comment, if there is anybody here. Did anyone sign up? 

No, they did not. All right. 

Then all we have to do is to adjourn briefly for 

a briefing on pending litigation. There is no action 

being requested. I will come out and make an announcement 

after the executive session is over just to confirm that 

we didn't do anything, assuming that remains true. But 

nobody else needs to do that. But I would appreciate your 

joining me in the staff room for a brief executive 

section. Thanks, everybody. And we will be adjourning 

other than that last report. 

(Whereupon the Board recessed into closed 

session from 11:29 a.m. to 12:12 p.m.)

BOARD MEMBER SHERRIFFS: So we are back on 

record. Alan Sherriffs acting as Chair here. We met in 

closed session to discuss litigation. Made no action. 

And this meeting is adjourned. Thank you. 

(Whereupon the California Air Resources 

Board adjourned at 12:12 p.m.)

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CERTIFICATE OF REPORTER

I, TIFFANY C. KRAFT, a Certified Shorthand 

Reporter of the State of California, and Registered 

Professional Reporter, do hereby certify:

That I am a disinterested person herein; that the 

foregoing hearing was reported in shorthand by me, 

Tiffany C. Kraft, a Certified Shorthand Reporter of the 

State of California, and thereafter transcribed into 

typewriting.

I further certify that I am not of counsel or 

attorney for any of the parties to said hearing nor in any 

way interested in the outcome of said hearing.

IN WITNESS WHEREOF, I have hereunto set my hand 

this 5th day of November, 2014.

 

TIFFANY C. KRAFT, CSR, RPR

Certified Shorthand Reporter

License No. 12277 

 

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