Vote — approved

Thomas Galvin	yes
Kate Brophy McGee	yes
Mark Stewart	yes
Debbie Lesko	yes
Steve Gallardo	yes

Ayes: Thomas Galvin, Kate Brophy McGee, Mark Stewart, Debbie Lesko, Steve Gallardo

Item Text

65. AQ-2024-004-RULE 205 (EMISSION OFFSETS GENERATED BY VOLUNTARY MOBILE SOURCE EMISSION REDUCTION CREDITS) Set a public hearing, as required by Arizona Revised Statutes (A.R.S.) § 49-479(b), for May 21, 2025, at 9:30 a.m. to solicit comments on the proposed revision of Maricopa County Air Pollution Control Regulations, Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) and the associated proposed revision to the Arizona State Implementation Plan (SIP). Following the public hearing, the Board is requested to adopt the proposed amendments to the rule, to approve the submission of the amended rule as a revision to the Arizona SIP, and to approve the withdrawal of the original May 4, 2023, Rule 205 SIP submittal. The purpose of Rule 205 is to allow for the generation and certification of mobile source emission reduction credits (MERCs) for use as emission offsets through voluntary captive fleet vehicle replacement or retrofit. The purpose of the rulemaking is to remedy deficiencies identified by the U.S. Environmental Protection Agency (EPA) and to address stakeholder comments. On May 4, 2023, MCAQD submitted Rule 205 to the EPA for approval into the Arizona SIP. EPA reviewed Rule 205 and identified deficiencies which precluded approval of Rule 205 into the SIP. MCAQD has worked with the EPA to adequately address the deficiencies. Additionally, MCAQD received stakeholder feedback proposing an additional rule revision under Appendix A whereby baseline emissions are determined using the original vehicle engine model year. This revision is not part of the revisions to address the EPA identified deficiencies. This proposed revision will allow a greater amount of MERCs to be calculated thereby creating a greater incentive for captive fleet owners to replace or retrofit old, higher NOx emitting vehicles. Rule 205 was developed as an economic incentive program and the only way to make it an effective incentive program is by revising the MERC calculation to use the emissions of the original vehicle. MCAQD is planning to withdraw the May 4, 2023, SIP submittal and replace it with a new Rule 205 SIP submittal where both the EPA’s identified deficiencies are addressed and the revised calculation methodology is included. (C-85-25-023-X-00)

Attachments (1)

Vote — approved

Thomas Galvin	yes
Kate Brophy McGee	yes
Mark Stewart	yes
Debbie Lesko	yes
Steve Gallardo	yes

Ayes: Thomas Galvin, Kate Brophy McGee, Mark Stewart, Debbie Lesko, Steve Gallardo

Item Text

12. AQ-2024-004-RULE 205 (EMISSION OFFSETS GENERATED BY VOLUNTARY MOBILE SOURCE EMISSION REDUCTION CREDITS) Convene a public hearing, as required by Arizona Revised Statutes (A.R.S.) § 49-479(b), to solicit comments on the proposed revision of Maricopa County Air Pollution Control Regulations, Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) and the associated proposed revision to the Arizona State Implementation Plan (SIP). Following the public hearing, the Board is requested to adopt the proposed amendments to the rule, to approve the submission of the amended rule as a revision to the Arizona SIP, and to approve the withdrawal of the original May 4, 2023, Rule 205 SIP submittal. The purpose of Rule 205 is to allow for the generation and certification of mobile source emission reduction credits (MERCs) for use as emission offsets through voluntary captive fleet vehicle replacement or retrofit. The purpose of the rulemaking is to remedy deficiencies identified by the U.S. Environmental Protection Agency (EPA) and to address stakeholder comments. On May 4, 2023, MCAQD submitted Rule 205 to the EPA for approval into the Arizona SIP. EPA reviewed Rule 205 and identified deficiencies which precluded approval of Rule 205 into the SIP. MCAQD has worked with the EPA to adequately address the deficiencies. Additionally, MCAQD received stakeholder feedback proposing an additional rule revision under Appendix A whereby baseline emissions are determined using the original vehicle engine model year. This revision is not part of the revisions to address the EPA identified deficiencies. This proposed revision will allow a greater amount of MERCs to be calculated thereby creating a greater incentive for captive fleet owners to replace or retrofit old, higher NOx emitting vehicles. Rule 205 was developed as an economic incentive program and the only way to make it an effective incentive program is by revising the MERC calculation to use the emissions of the original vehicle. MCAQD is planning to withdraw the May 4, 2023, SIP submittal and replace it with a new Rule 205 SIP submittal where both the EPA’s identified deficiencies are addressed and the revised calculation methodology is included. (C-85-25-023-X-01)

Attachments (1)