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HomeMy WebLinkAboutApproved AQC Meeting Summary_08March2023 1 ENVIRONMENTAL MANAGEMENT COMMISSION AIR QUALITY COMMITTEE MEETING SUMMARY March 8, 2023 Archdale Building-Ground Floor Hearing Room 2:45 P.M. – 4:45 P.M. AQC MEMBERS IN ATTENDANCE Ms. Margaret (Maggie) C. Monast, AQC Chair Ms. Donna Davis Ms. Yvonne Bailey Ms. Marion Deerhake Mr. Charlie S. Carter Dr. H. Kim Lyerly OTHERS IN ATTENDANCE Ms. Robin Smith, EMC Chair Mr. Mike Abraczinskas, DAQ Director Ms. Elizabeth (Jill) Weese, EMC Mr. Randy Strait, DAQ Planning Chief Mr. Phillip Reynolds, EMC Counsel DEQ Staff Mr. Zach Pierce, Office of Governor Members of the public PRELIMINARY MATTERS Agenda Item I-1, Call to Order and the State Government Ethics Act, N.C.G.S. §138A-15 AQC Chair Monast called the meeting to order and inquired, per General Statute §138A-15, as to whether any member knows of any known conflict of interest or appearance of conflict with respect to matters before the EMC’s AQC. None stated. Agenda Item I-2, Review and Approval of the November 9, 2022 Meeting Minutes Chair Monast requested approval of the November 9, 2022 Meeting Minutes. Commissioner Bailey made the motion and Commissioner Deerhake seconded the motion. The minutes were approved unanimously without discussion. MEETING BRIEF During the meeting on March 8, 2023, the Air Quality Committee (AQC) of the Environmental Management Commission (EMC) heard: • Concepts: None • Action Item: None • Informational Item: Advanced Clean Trucks (ACT) Rule Update 2 RULEMAKING CONCEPTS No rulemaking concepts items were presented during this AQC meeting. ACTION ITEMS No action items were presented during this AQC meeting. INFORMATIONAL ITEMS Agenda Item V-1, Advanced Clean Truck Rule Update (Zach Pierce, Office of the Governor, and Randy Strait, DAQ) Mr. Zach Pierce, Senior Advisor with the Office of the Governor, and Mr. Randy Strait, Chief of the Division of Air Quality (DAQ) Planning Section, presented an overview of the Advanced Clean Trucks (ACT) rulemaking and recent stakeholder engagement. Mr. Pierce started the presentation with an overview of various North Carolina Executive Actions to reduce Greenhouse Gas (GHG) emissions from vehicles, starting with Executive Order (EO) 80, signed in October 2018, and ending with the more recent EO 271, signed in October 2022. EO 271 directed DEQ to develop and propose an ACT Rule and outlines additional steps to ensure its success, such as an infrastructure needs assessment and availability of State and federal funds. Mr. Strait continued the presentation by providing a breakdown of historical carbon dioxide (CO2) emissions data for the transportation sector and its contribution to statewide CO2 emissions, stating that the most recent emissions data showed that the transportation sector contributed 36% of the total GHG statewide emissions. The transportation sector was the largest contributor, followed by the power sector at 33%. The ACT rule is a way to reduce transportation sector GHG emissions while growing the State’s gross state product under continued projections of increases in state population. Medium- and heavy-duty (MHD) vehicles account for 17% of the 2017 transportation sector GHG emissions in North Carolina. The earliest date that North Carolina could have an effective ACT rule would be January 1, 2024. Under Section 177 of the Clean Air Act (CAA), the state is required to allow two years of lead time following an effective rule, before implementing the rule. Therefore, DAQ would implement the rule beginning on January 1, 2026, with the model year 2027 sales percentages. Mr. Strait described the seven stakeholder outreach sessions that were conducted between January 9 and February 21, 2023. Four sessions were virtual and three were held in person in Charlotte, Burlington, and Pembroke. Overall, the responses were positive, and stakeholders believe the adoption of the ACT is a win-win for businesses and the health of our citizens. Stakeholders expressed the need for further communication with underserved communities, leverage of financial resources, and workforce development, as well as infrastructure challenges. Discussion: Commissioner Carter asked how much progress has been made towards EO 80’s 2025 goals of 40% reduction in GHG emissions from 2005 levels and 80,000 registered light-duty (LD) zero-emission vehicles (ZEVs). Mr. Pierce replied that North Carolina currently has 50,000 registered LD ZEVs and the 40% target has not yet been achieved, but the state has seen significant progress. Commissioner Davis asked if current cost comparison information is available for ZEVs versus standard vehicles. Mr. Pierce responded that the cost of MHD ZEVs is constantly changing and becoming increasingly competitive with their gas and diesel counterparts, especially when considering the reduced maintenance and fuel costs. 3 Commissioner Deerhake asked for an example of the type of truck at the lower end of the Class 2b category, if a cost-benefit analysis has been performed, and if it is being communicated to consumers in a clear manner. Mr. Pierce replied that an F-250 is an example of a Class 2b truck and clarified that the ACT rule does not put any requirements on the consumer, instead only providing access to these types of vehicles. Commissioner Deerhake stressed the importance of providing public health benefits in all rulemakings, in addition to the costs to industries. Commissioner Carter noted the short time frame proposed to adopt the ACT Rules and inquired about the status of the fiscal note. Mr. Strait stated that DAQ is currently working on the fiscal note and evaluating the best approach to calculate emissions, which may involve either scaling California’s analysis, or a more detailed emissions analysis using modeling data. However, because the MOVES model emission data is not yet available, the fiscal note will likely use the scaled approach. Commissioner Carter noted the difficulty in enforcing the sales standards on manufacturers, specifically those outside the State. Commissioner Davis asked if there were any consequences to the State should the sales standards not be met. Director Abraczinskas stated that there would not be any consequences to the State. Any enforcement action towards manufacturers would have to be decided by the EMC from DAQ recommendations provided along with the rule. Commissioner Deerhake asked if the sales standards apply only to the manufacturing and offering of a certain percentage of vehicles for sale in the State, or if the rule requires the actual sales of ZEVs, and how the manufacturers would meet those goals (through incentives, etc.). Mr. Strait stated that the sales standard applies to the actual sales of ZEVs, which would be tracked by the manufacturer by vehicle identification number (VIN) and vehicle registration. The manufacturers could meet the sales requirements by completing sales to the end user (e.g., fleets), or by purchasing credits from other manufacturers selling within the State. Chair Monast asked that the concept of credits be explained in more detail. Mr. Strait stated that in California, electric vehicle (EV) manufacturers can bank credits for three years and sell these credits to other manufacturers with deficits. The credits have a 5-year lifespan. Manufacturers are encouraged to work together to meet the targets and bring the cost down, and are given one year to make up the credit if they miss their targets. Chair Monast asked that if the ACT rule is not adopted in January 2024, what is the earliest model year to which the sales standards would apply. Mr. Strait stated that that the sales standards would then begin with model year 2028 at 20% and 30%. Director Abraczinskas stated that manufacturers, during the outreach session, stressed the importance of the early reduction credits. Commissioner Carter asked if plug-in hybrids would also be included in the credit program. Mr. Strait stated that based on his understanding of the California ACT regulation, plug-in hybrids would also be included. Commissioner Carter asked if hydrogen fuel cell vehicles are a realistic option for compliance with the ACT rule. Mr. Strait stated that a lot of advancements have been made in hydrogen fuel cell technology and that within the next 10 years, it will be a viable option for long haul trucking. Commissioner Davis asked if the charging infrastructure will be available outside of the state, considering that North Carolina will be the first state in the southeast to adopt the ACT rule. Mr. Pierce replied that the seven states that have adopted the ACT rule make up 20% of the trucking market in the United States. It is important to ensure that we accommodate and promote these vehicles. There is a lot of coordination across the country to ensure that the infrastructure will be available. Commissioner Deerhake requested that DAQ consider including maps that overlay the warehouse locations and EJ communities, as the fiscal note and public presentations are being prepared. She also 4 requested both individual and total benefits for the PM2.5 and NOx emission reductions, not just GHGs. Mr. Strait stated that if the EPA models allow for overlay, then DAQ will include them. Chair Monast asked for an explanation of the next steps. Director Abraczinskas thanked the staff, Robin Barrows, Shawn Taylor, the DEQ EJ team, the Regional Offices, and the Rule Development Branch for conducting the seven pre-rulemaking stakeholder meetings. Director Abraczinskas also stated that Clean Energy Tech Center, at NC State, will hold a demonstration on April 11 and 12 for government entities to learn about charging. Commissioners are invited to attend. Agenda Item V-2, Director’s Remarks (Mike Abraczinskas, DAQ) Director Abraczinskas began by introducing and welcoming the new Deputy Director, Taylor Hartsfield. Ms. Hartsfield brings over 10 years of regional office experience and holds a BS in Biosystems Engineering and a minor in Environmental Engineering from Clemson University. Director Abraczinskas stated that DAQ is currently working to fill the Business Officer position, Raleigh Regional Office Supervisor position, Air Quality Analysis Branch Supervisor position, Projects and Procedures Branch Supervisor, and 31 other vacancies. Finding funding sources for salary administration for the Division remains a priority. He concluded with some staffing statistics, mentioning that 7 additional DAQ Supervisors will retire in the next 12 months, 30 other staff are eligible to retire in the next 12 months, and 80 of the Division’s staff are eligible to retire in the next 50 months. CLOSING REMARKS AND MEETING ADJOURNMENT Chair Monast asked if there were any other comments or questions. No comments or questions were made. Chair Monast thanked all in attendance for their participation.