AQ-2024-004-RULE205-REPORTTOBOARDOFSUPERVISORS.PDF
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Air Quality Department 301 W. Jefferson St., Suite 410 Phoenix, Arizona 85003 P: 602-506-6010 E: AQMail@maricopa.gov Enhanced Regulatory Outreach Program Maricopa County Air Quality Department Notice of Public Hearing Subject: Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) Date/Time: May 21, 2025, at 9:30 a.m. Location: Board of Supervisors’ Auditorium 205 W. Jefferson St., Phoenix, Arizona 85003 The Maricopa County Board of Supervisors is scheduled to conduct a public hearing to solicit comments on the proposed revisions to Maricopa County Air Pollution Control Regulations, Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits), the submission of the amended rule as a revision to the Arizona state implementation plan (SIP), and the approval of the withdrawal of the original May 4, 2023, Rule 205 SIP submittal. You may comment on the proposed rule using the Enhanced Regulatory Outreach Program (EROP) online comment form. AQ-2024-004-Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) 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 Air Quality Department 301 W. Jefferson St., Suite 410 Phoenix, Arizona 85003 P: 602-506-6010 E: AQMail@maricopa.gov 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. Members of the public may attend the Board meeting in person or view the meeting online. Please check the Board of Supervisors’ website at least 24 hours before the date of the public hearing for instructions for remote access. Live video feeds are also available at www.maricopa.gov. For more information regarding this rulemaking, please refer to the Report to the Board of Supervisors attached to this notice and available on the EROP Active Regulatory Process webpage. A copy of the SIP submittal and Economic Incentive Program supporting document will be available at least 30 days prior to the hearing for public inspection at the offices of the Maricopa County Air Quality Department, 301 West Jefferson Street, Suite 410, Phoenix, Arizona 85003. The SIP submittal and Economic Incentive Program supporting document will also be available on the EROP Active Regulatory Process webpage at least 30 days prior to the hearing. In addition, copies of the Report to the Board of Supervisors, SIP submittal, and Economic Incentive Program supporting document can be obtained by calling 602-506-6010. MCAQD will take reasonable measures to provide access to department services to individuals with limited ability to speak, write, or understand English and/or to those with Air Quality Department 301 W. Jefferson St., Suite 410 Phoenix, Arizona 85003 P: 602-506-6010 E: AQMail@maricopa.gov disabilities. Requests for language interpretation services or for disability accommodations must be made at least 48 hours in advance by contacting: 602-506-6443. MCAQD tomará las medidas necesarias para brindar acceso a los servicios del departamento a personas que no dominan el idioma inglés y/o personas con discapacidades. Las solicitudes de servicios de interpretación de otro idioma o adaptaciones para discapacitados deben realizarse con al menos 48 horas de anticipación comunicándose con: 602-506-6443. Air Quality Department 301 W. Jefferson St., Suite 410 Phoenix, Arizona 85003 P: 602-506-6010 E: AQMail@maricopa.gov Executive Summary of the Report to the Board of Supervisors Prepared by Maricopa County Air Quality Department Board Hearing Date: May 21, 2025 Case Number/Title: AQ-2024-004-Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) Agenda Item: (Pending) Supervisor Districts: All Districts The Maricopa County Air Quality Department (MCAQD) complied with all statutory and county policies throughout this rulemaking process. Per the Enhanced Regulatory Outreach Program (EROP) Policy: “In addition to the required staff report, an executive summary of the report including an overview of stakeholder input and staff responses will be provided to the Board of Supervisors at least one week prior to any Board of Supervisors’ public hearing.” Overview of the Report to the Board of Supervisors: 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 Air Quality Department 301 W. Jefferson St., Suite 410 Phoenix, Arizona 85003 P: 602-506-6010 E: AQMail@maricopa.gov 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. Overview of Stakeholder Input and Staff Responses: During the rulemaking process, MCAQD received written feedback from two stakeholders who expressed neither support nor opposition to the rulemaking. MCAQD representatives met with each stakeholder and worked with them to address their comments. A summary of the comments and the MCAQD responses to the comments are included under Section 9 of the attached Draft Notice of Final Rulemaking. Copies of the stakeholder’s comments are attached to this report. Maricopa County Air Quality Department Planning and Analysis Division Report to the Board of Supervisors Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) May 2025 Board of Health Email Notification: September 3, 2024 Board Hearing Date: May 21, 2025 Case Number/Title: AQ-2024-004-Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) Agenda Item: (Pending) Supervisor Districts: All Districts Applicant: Staff Request: Approve revision of Maricopa County Air Pollution Control Regulations, Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits), the proposed submission of the amended rule as a revision to the Arizona state implementation plan (SIP), and the withdrawal of the May 4, 2023, Rule 205 SIP submittal. Maricopa County is currently designated as a nonattainment area for both the 2008 8-hour ozone National Ambient Air Quality Standard (NAAQS) and the 2015 8-hour ozone NAAQS. It is classified as a moderate nonattainment area for both the 2008 8-hour ozone NAAQS and 2015 ozone 8- hour NAAQS. In ozone nonattainment areas, the Clean Air Act (CAA) under the New Source Review program requires an owner or operator proposing to construct a new major source or proposing to construct a major modification of an existing major source to obtain emission offsets that exceed emission increases from the proposed project before the project may commence. In the case of an ozone moderate nonattainment area, such as Maricopa County, the CAA requires an owner or operator proposing to construct a new major source or proposing to construct a major modification of an existing major source to obtain 1.15 tons of emission offsets for every 1.0 ton of proposed emission increases from the project. Currently, insufficient emission reduction credits, which can be used as emission offsets, exist to permit large new or existing modified projects in Maricopa County. As a result, Rule 205 was created and adopted by the Board of Supervisors on April 26, 2023. The purpose of Rule 205 is to allow for the generation and certification of mobile source emission reduction credits (MERCs) for use as emission Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 7 of 125 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. Support/Opposition: During the rulemaking process, MCAQD received written feedback from two stakeholders who expressed neither support nor opposition to the rulemaking. MCAQD representatives met with each stakeholder and worked with them to address their comments. Staff Recommendation: Approve Board of Health Recommendation: Approve Additional Comments: This regulatory change is following the Enhanced Regulatory Outreach Program (EROP) Policy and workflow process. The County Manager briefed the Board of Supervisors regarding this rulemaking on November 2, 2021, and April 8, 2024. Stakeholder Workshops were held on January 22, 2022, November 2, 2022, and September 17, 2024. The Board of Health approved initiation of regulatory change on January 24, 2022, a Notice of Proposed Rulemaking was posted on the EROP website on December 7, 2022, and the Board of Health recommended approval to the Board of Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 8 of 125 Supervisors on January 23, 2023. The Board of Supervisors adopted the rule on April 26, 2023, and MCAQD submitted the rule to the EPA on May 4, 2023. Upon feedback from the EPA and continuation of the EROP policy workflow, an email notification was sent to the Board of Health on September 3, 2024, and a second Notice of Proposed Rulemaking was posted on the EROP website on February 26, 2025. A newspaper notice of the Board of Supervisors public hearing will be published in the Arizona Business Gazette on April 10, 2025, and April 17, 2025. This regulatory change will take effect immediately upon approval by the Board of Supervisors. Presented By: Philip A. McNeely, R.G., Director Prepared By: Planning and Analysis Division Attachments: Preamble required by Arizona Revised Statutes (A.R.S.) § 49- 471.07 (See the Draft Notice of Final Rulemaking) Summary of the proposed regulatory change (See Item 4 of the Draft Notice of Final Rulemaking) Analysis of input received during the process and how that input was responded to (See Item 9 of the Draft Notice of Final Rulemaking) Language of proposed regulatory change or amendment (See the Draft Notice of Final Rulemaking) Minutes from Board of Health meeting - January 24, 2022 Copies of all written and electronic Stakeholder input Working Draft Rule 205_Strikethrough Working Draft Rule 205_Clean Minutes from Board of Health meeting - January 23, 2023 Board of Health Notification for MCAQD Rules 204 and 205 - September 3, 2024 Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 9 of 125 Maricopa County Air Quality Department Planning and Analysis Division Draft Notice of Final Rulemaking Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) May 2025 Draft Notice of Final Rulemaking Maricopa County Air Pollution Control Regulations Regulation II – Permits and Fees Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) The Maricopa County Air Quality Department (MCAQD) is proposing to amend Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits). The Control Officer is posting this Draft Notice of Final Rulemaking on the Maricopa County Enhanced Regulatory Outreach Program (EROP) website as part of the Report to the Board of Supervisors, in accordance with the Maricopa County EROP Policy. This notice includes the preamble, as prescribed in Arizona Revised Statute (A.R.S.) § 49-471.05, and the full text of the rule, including the intended actions to make new sections or amend, repeal, or renumber the sections of the rule. This notice also includes a list of all previous notices posted on the Maricopa County EROP website addressing the proposed rule and the concise explanatory statement prescribed in A.R.S. § 49-471.07(B). Preamble 1. Statutory authority for the rulemaking (A.R.S. § 49-471.05(1)): A.R.S. §§ 49-112, 49-474, 49-479 and 49-480 2. Name and address of department personnel with whom persons may communicate regarding the rulemaking (A.R.S. § 49-471.05(2)): Name: Will Adrian or Kimberly Butler Maricopa County Air Quality Department Planning and Analysis Division Address: 301 W. Jefferson St., Suite 410 Phoenix, AZ 85003 Telephone: 602-506-6010 Fax: 602-506-6179 Email: AQPlanning@maricopa.gov Online: Submit a Comment 3. Rulemaking process (A.R.S. § 49-471.05(3)): This rulemaking is following procedures identified in state statutes and the Maricopa County EROP Policy. Return to list of attachments Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 11 of 125 First County Manager Briefing: November 2, 2021 Stakeholder Workshops: January 10, 2022 November 2, 2022 Board of Health Meeting to Initiate Regulatory Change: January 24, 2022 First Notice of Proposed Rulemaking: December 7, 2022 Board of Health Meeting to Recommend Approval to the Board of Supervisors: January 23, 2023 First Board of Supervisors Formal Meeting to Set the Public Hearing: March 15, 2023 First Board of Supervisors Public Hearing: April 26, 2023 Arizona State Implementation Plan (SIP) Revision Submittal: Second County Manager Briefing: EPA Proposed Conditional Approval: Email Notification to Board of Health: Stakeholder Workshop: Second Notice of Proposed Rulemaking: May 4, 2023 April 8, 2024 August 22, 2024 September 3, 2024 September 17, 2024 February 26, 2025 Second Board of Supervisors Formal Meeting to Set the Public Hearing: April 9, 2025 Second Board of Supervisors Public Hearing: May 21, 2025 4. Explanation of the rule, including the control officer's reasons for initiating the rulemaking (A.R.S. § 49-471.05(4)): Maricopa County is currently designated as a nonattainment area for both the 2008 8- hour ozone National Ambient Air Quality Standard (NAAQS) and the 2015 8-hour ozone NAAQS. It is classified as a moderate nonattainment area for both the 2008 8-hour ozone NAAQS and 2015 ozone 8-hour NAAQS. In ozone nonattainment areas, the Clean Air Act (CAA) under the New Source Review program requires an owner or operator proposing to construct a new major source or proposing to construct a major modification of an existing major source to obtain emission offsets that exceed emission increases from the proposed project before the project may commence. In the case of an ozone moderate nonattainment area, such as Maricopa County, the CAA requires an owner or operator proposing to construct a new major source or proposing Return to list of attachments Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 12 of 125 to construct a major modification of an existing major source to obtain 1.15 tons of emission offsets for every 1.0 ton of proposed emission increases from the project. Currently, insufficient emission reduction credits, which can be used as emission offsets, exist to permit large new or existing modified projects in Maricopa County. As a result, Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) was created and adopted by the Board of Supervisors on April 26, 2023. 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. On May 4, 2023, the rule was submitted to the U.S. Environmental Protection Agency (EPA) for approval into the Arizona State Implementation Plan (SIP). On March 25, 2024, the EPA sent MCAQD a letter identifying deficiencies and issues in the rule that would prevent full approval of the rule into the Arizona SIP. In the letter, the EPA stated they may grant conditional approval of Rule 205 under section 110(k)(4) of the Clean Air Act based on a commitment by the state to adopt and submit specific enforceable measures within one year of the EPA's final conditional approval. On May 6, 2024, MCAQD submitted a Letter of Commitment for Conditional Approval of Rule 205 through the Arizona Department of Environmental Quality (ADEQ) to EPA. The letter outlined MCAQD’s commitments to address each deficiency and issue identified in EPA’s comment letter. Based on the commitment letter, the EPA published a proposed conditional approval of Rule 205 in the Federal Register on August 22, 2024 (Docket ID No.: EPA–R09–OAR– 2024–0311). The proposed conditional approval rulemaking was available for a 30-day comment period, ending September 23, 2024. The proposed conditional approval references a Technical Support Document (TSD) which includes a thorough review of Rule 205 and MCAQD’s commitments. Revisions addressing both the EPA’s identified deficiencies and issues have been made to the proposed draft Rule 205 (included in this notice). A link to EPA’s TSD is located under Section 5 of this notice. It is important to note that Rule 205 is considered an economic incentive program (EIP). An EIP, as described by EPA’s EIP guidance document titled “Improving Air Quality with Economic Incentive Programs” (link in Section 5), is a regulatory program that achieves an air quality objective by providing market-based incentives. MCAQD developed Rule 205 with the objective to provide owners and operators of captive fleet vehicles with a market-based incentive to replace or retrofit older, high NOx emitting vehicles with newer vehicles using a lower-emitting fuel. By replacing or retrofitting older, high NOx emitting vehicles with newer vehicles using a lower-emitting fuel, captive fleet owners can obtain emission reduction credits which they can then sell as emission offsets to businesses looking to relocate or expand in Maricopa County In response to stakeholder feedback MCAQD is 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 Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 13 of 125 be calculated thereby creating a greater incentive for captive fleet owners to replace or retrofit old, higher NOX emitting vehicles. In the version of Rule 205 submitted to the EPA on May 4, 2023, the calculated MERCs is based on the difference between the emissions of a new model year vehicle and the emissions of a replacement vehicle using a lower-emitting fuel. The calculations do not account for emission reductions from the replacement or retrofit of vehicles older than a new model year vehicle. For example, replacing a 2008 diesel vehicle with a 2024 compressed natural gas (CNG) vehicle would only generate MERCs that account for the difference in emissions from a new 2024 diesel vehicle and the 2024 CNG vehicle. MCAQD is proposing the calculated MERCs be based on the difference between the emissions of the original vehicle (the vehicle which is replaced or retrofitted), taking into account age-based deterioration and older federal emission standards, and the lower- emitting fueled replacement vehicle. Using the emissions of the original vehicle for the MERC calculation will allow a greater amount of MERCs to be calculated and provide a real incentive to replace or retrofit older high emitting NOx vehicles in Maricopa County. 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. Because EPA’s conditional approval did not take into account a revision to the Rule 205 calculation methodology, MCAQD is planning to withdraw the May 4, 2023, SIP submittal and replace it with a new Rule 205 SIP submittal where the EPA’s identified deficiencies are addressed and the revised calculation methodology is included. Details about the EPA’s identified rule deficiencies and MCAQD’s proposed remedies are described below, followed by EPA EIP support document elements and MCAQD’s commitments to address each in a Rule 205 EIP support document. Comment 1: Applicability of Rule 205 to Ozone Precursors: Throughout the rule, the term “conventional air pollutants” is used. This term is defined in Section 200.34 of Rule 100 – General Provisions and Definitions [MCAPCR], as a pollutant for which a national ambient air quality standard (NAAQS) has been promulgated, including any precursors to such pollutants. The use of this term would presumably allow Mobile Source Emission Reduction Credits (MERCs) to be generated for any NAAQS pollutant, while Maricopa County is only designated nonattainment for the 2008 and 2015 ozone NAAQS, and the 1987 PM10 NAAQS. Due to several technical issues with calculating PM10 emissions reductions from mobile sources, the rule must be revised to specify that MERCs may only be generated for the ozone precursors of nitrogen oxides and volatile organic compounds. Remedy 1: MCAQD is proposing to revise the definition for qualifying emissions, Section 218, to Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 14 of 125 limit the generation of MERCs to the ozone precursors of nitrogen oxides (NOx) and volatile organic compounds (VOCs). Comment 2: Rule Definitions, Consistent Terminology and Enforceability: CAA Section 110(a)(2) requires all rules incorporated into a SIP to be enforceable. There are several parts of the rule where the current text is not clear, which can lead to confusion as to how certain provisions of the rule are to be carried out and enforced. Here we comment on two specific issues. a. Defining vehicle types: The rule relies on specific pieces of data from three different vehicles that would be involved in each proposed emission generating project; (1) the original fleet vehicle that is to be replaced or retrofitted, (2) the regulatory baseline vehicle, which is an equivalent (size, fuel, and type of vehicle) current implementation model year replacement for the original vehicle that provides the emissions baseline to calculate the emissions reduction, and (3) the actual retrofitted or replacement vehicle which provides the cleaner vehicle emission data. Defining these as distinct terms in the rule is essential to differentiate each type of vehicle and then use these terms consistently throughout the rule. b. Defining and distinguishing MERC terminology: The rule currently uses various terms, such as “certified credits” and “MERCs”, to describe the emissions reductions for which a tradable credit may be issued. It appears the rule uses the terms “certified credits” and “MERCs” almost interchangeably, although they are defined differently (See definition for “Certified Emission Reduction Credits” and “MERCs”). The rule must be revised to provide clear and consistent usage of the terms used to describe emission reductions, along with appropriate definitions for each term. We suggest revising the rule as necessary to make clear that the process is for the Department to evaluate proposed reductions in qualifying emissions, certify the reductions if they meet the certification criteria and issue MERC certificates for the certified quantity of qualified emission reductions. Remedy 2a. MCAQD is proposing to create a new definition for original vehicle (Section 216) and revise the definitions for replacement vehicle (Section 221) and retrofit vehicle (Section 222) and revise the rule to ensure these terms are used consistently throughout the rule. Remedy 2b. MCAQD is proposing to revise MERC terminology by removing the definition for certified emission reduction credit and creating a new definition for MERC certificate (Section 211), and consistently using the term MERC throughout the rule to represent a tradable Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 15 of 125 credit. MCAQD is also proposing to implement these terms more consistently in the rule to distinguish between evaluation of qualifying emissions, certification of emission reductions, and issuance of MERC certificates. Comment 3 MERC Certificate Content: To ensure the permit authority, the EPA, and the public can evaluate whether a MERC surrendered as a New Source Review (NSR) offset meets the offset integrity criteria found in 40 CFR 51.165(a)(3)(ii)(C)(1)(i) at the time of NSR permit issuance, the rule must specify the minimum contents of each MERC certificate. The certificate must include all the specific data for the particular qualified emission reductions, such as, but not limited to: MERC certificate number, date of issuance, name and address of the generator, description of activity that resulted in the qualified emission reductions, the quantity of emission reductions certified for each pollutant, the vehicle miles travelled (VMT) and Motor Vehicle Emission Simulator (MOVES) emission factors used for the calculations, a statement that the MERC does not provide any property rights, and a statement that the new source relying on the emissions offsets from a MERC may not commence operation until the emissions reductions corresponding to that MERC have actually occurred. Remedy 3 MCAQD is proposing to revise the rule to include the contents of each MERC certificate. Section 301.3 b.(2) in the draft rule lists the specific data that must be included in the MERC certificate which includes the following: MERC certificate number, date of issuance, name and address of the generator, description of activity that resulted in the qualified emission reductions, the quantity of emission reductions certified for each pollutant, the vehicle miles travelled (VMT) and Motor Vehicle Emission Simulator (MOVES) emission factors used for the calculations, a statement that the MERC does not provide any property rights, and a statement that the new source relying on the emissions offsets from a MERC may not commence operation until the emissions reductions corresponding to that MERC have actually occurred. Comment 4 Relocation and Disposal of Baseline Vehicles: Section 302.2c. – Removal/Disposal of Replaced Baseline Vehicles, currently requires disposal of the vehicles for which a MERC is issued, in part to satisfy the requirement of 40 CFR 51.165(a)(3)(ii)(C)(1)(i) that emission reductions used for offsets must be permanent. Options for disposal currently include rendering the fleet vehicles permanently disabled and disposed of, or permanently removing the vehicles at least 200 miles from the Phoenix-Mesa ozone nonattainment area. While disabling and disposing of an engine is the best way to ensure the replaced vehicle will no longer operate in the Phoenix-Mesa ozone nonattainment area, we believe relocating the vehicles at least 200 miles outside the Phoenix-Mesa ozone nonattainment area is acceptable if additional restrictions are imposed on the final location of those vehicles. The rule must specify that vehicles relocated out of the Phoenix-Mesa ozone nonattainment area must not be relocated to any other ozone nonattainment area, as designated on the date a MERC certificate is Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 16 of 125 issued. Remedy 4 MCAQD is proposing to revise Section 302.2 c. to add additional restrictions on relocation whereby original vehicles relocated outside of the Phoenix-Mesa ozone nonattainment area must not be relocated to any other ozone nonattainment area, as designated on the date of MERC issuance. Comment 5 Determining and Documenting Annual Utilization Rates: 40 CFR 51.165(a)(3)(ii)(C)(1)(i) requires emission reductions to be quantifiable. Rule 205 requires the applicant to supply the annual average miles that the original fleet vehicles were utilized within the nonattainment area, and to monitor and record the VMT for each new fleet vehicle on an annual basis. The VMT data is critical for determining the quantity of MERCs issued and to verify that the certified number of actual emission reductions are being achieved. Section 301.1b.(4) requires an application to include “Information on the methodology for quantifying the surplus reductions in qualifying emissions for each pollutant subject to the application, including emissions calculations.” The rule does not contain sufficient requirements to provide the annual average utilization rate for each vehicle included in the proposed project, nor any requirement to document how these rates were determined. Rule 205 must specify that the application include information documenting the activity level claimed by the applicant. Remedy 5 MCAQD is proposing to revise the MERC application requirements under 301.1 a.(4) to require the applicant to provide documentation of each original vehicle’s historic vehicle miles traveled, and how these rates were determined. Comment 6 Installation and Operation of Fleet Monitoring System: 40 CFR 51.165(a)(3)(ii)(C)(1)(i) requires emission reductions to be federally enforceable. Section 503 contains monitoring provisions for permitted generators and requires the VMT for each fleet vehicle to be monitored “as determined by GPS tracking.” The rule does not define what constitutes “GPS tracking.” Generally, a fleet owner would install and operate a complete fleet monitoring system to provide GPS tracking. To ensure enforceability of the emission reductions, the rule must contain requirements for the installation, operation and maintenance of a defined GPS tracking device and software system that will monitor and record VMT data, including whether the VMT occurred within the specific nonattainment area, in addition to the general operation and maintenance requirements in Section 503. These requirements must include provisions to require operation in accordance with manufacturer’s instructions/specifications, including a requirement to periodically update the software and maps used by the GPS tracking system. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 17 of 125 Remedy 6 MCAQD is proposing to remove the term “GPS tracking” and to add a new term “Fleet Management System” (defined in Section 207) which will be used in place of “GPS tracking”. MCAQD is also proposing revisions to the location tracking equipment and software system requirements under Section 302.2 b. Fleet Management System. This includes requirements for regular system updates, operation and maintenance in accordance with manufacturer’s instructions, and installation of a system that can differentiate and record travel in and out of the nonattainment area. For generators that operate entirely within the nonattainment area, MCAQD is proposing to add an exemption from complying with the fleet management system requirements of § 302.2 b.(1). The generator must submit to the Control Officer for approval, documentation demonstrating the operations occur entirely within the nonattainment area. In addition, the generator must demonstrate how the monthly VMT will be monitored and recorded in absence of a fleet management system. Comment 7 Data Used to Calculate Emissions Reductions: Appendix A.3. specifies that the “Baseline Pollutant Emissions Factor” is determined by using the “on-road vehicle emissions factors, in g/mile, in the latest applicable version of the United States Environmental Protection Agency’s (EPA) Motor Vehicle Emission Simulator (MOVES) software.” However, the “on-road vehicle emission factor, in g/mile” for a specific year, fuel, and class of vehicle is one that the MOVES software generates as a modeled output, after it factors in various local condition inputs. In order for the program to be based on current emissions factors, the rule must be revised to state that the g/mile emission factor is to be determined, for each project, using the latest version of MOVES. Additionally, the EIP support document must specify the MOVES input data fields to be used, how the MOVES software will be run, and that the Department will utilize the latest version of MOVES to calculate the creditable quantity of qualifying emission reductions. The EIP support document should explain how the generator will obtain the MOVES generated emission factor data to be used in their application. Remedy 7 MCAQD is proposing to revise Appendix A so the on-road vehicle emissions factor is determined by running the latest version of MOVES, as well as requiring the data points needed to run MOVES. MCAQD will also correct this deficiency by specifying in the EIP support document the MOVES input data fields to be used, how the MOVES software will be run, and that MCAQD will utilize the latest version of MOVES to calculate the creditable quantity of qualifying emission reductions. The EIP support document will also explain how the generator will obtain the MOVES-generated emission factor data to be used in their application. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 18 of 125 Comment 8 Notification of Implementation of Emission Reductions: Section 173(c)(1) of the CAA, regarding NSR offsets, states that emission reductions shall be in effect and enforceable by the time a new or modified source commences operation. Rule 205 allows a MERC certificate to be issued to the permitted generator based on their proposed emission reduction project, rather than a completed emission reduction project. Section 301.2c.(3) states that if the project has not been completed when the Department is prepared to issue a MERC certificate, then the MERC certificate must include a future completion date for the project. Section 301.2c.(1) requires the permit to incorporate the requirements of Section 302.2, but does not specify that a future completion date for the project be included in the permit. Rule 205 must be revised to require this date be included in the permit. Section 304.1d. further provides that “Reductions in qualifying emissions reflected in the number of certified credits shall be implemented before actual operation of the new stationary source or modification begins.” While this provision is found under the rule section entitled “Use of the Certified Credits,” it is not clear who this provision applies to as only the permitted generator can implement the required reductions in qualifying emissions, but it is the credit user that is restricted from operating prior to the MERC generating project being fully implemented. This provision must be clarified to clearly state that the credit user cannot commence operation until the project to reduce qualifying emissions has been completed. In turn, to ensure successful implementation and enforcement of the program, the rule must provide a mechanism to ensure that the public and credit user know when the credit generating project for any particular MERC certificate has been fully implemented. In addition, to track the implementation of MERCs and compliance with the NSR permit, the rule must include a requirement for the permitted generator to notify the Department when all replacement and/or retrofitted vehicles are in operation and all original vehicles have been properly removed or destroyed. Any mechanism for notifying the Department that the project has been completed must include the submittal of supporting documentation to demonstrate compliance with this requirement. Additionally, this completion notification should be provided to the credit user to document that the emissions reduction project generating the credits for their MERC certificate has been completed and that their project may commence operation. Remedy 8 MCAQD is proposing to include the date by which qualifying emission reductions are required to be implemented, under Section 301.3 b.(1)(c), in the generator’s new or revised permit. MCAQD is also proposing to add Section 303.3 to clearly state that the credit user cannot commence operation until the generator has demonstrated the project to reduce qualifying emissions has been completed. Additionally, MCAQD is proposing a new requirement under Section 401.1 for the generator to notify MCAQD and the credit user when completion of implementation of qualifying emission reductions for MERCs has taken place. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 19 of 125 Comment 9 Requirements for Users of Certified Credits: Rule 205 Section 102.2 states that the rule applies to owners or operators of a permitted stationary source that intend to use certified credits as offsets, but the rule does not provide a rule section to specify the requirements for credit users. Instead, these requirements are interwoven throughout the rule. We suggest gathering these requirements into one section of the rule. At a minimum, the rule must include provisions for the credit user that include the following requirements: (1) the certified credits (MERCs) must be surplus when their permit is issued, not as of the application submittal date; (2) the credit user may not commence operation until the permitted generator has submitted to the Department the necessary documents to demonstrate the MERC project was completed; (3) if notified of a VMT shortfall, the credit user must evaluate the VMT shortfall against the credit user’s actual 12-month rolling emissions from the project that relied on the MERCs as offsets; and (4) the credit user must make up any actual emission reduction shortfall that occurs. This rule section must also provide options for the credit user to make up any shortfalls. Remedy 9 MCAQD is proposing language in Section 303.2 that the Control Officer verify MERCs remain surplus prior to permit issuance. In Section 303.3, MCAQD is proposing language prohibiting the credit user from commencing operation until the permitted generator has submitted the necessary documents to the MCAQD to demonstrate the MERC project was completed. Additionally, MCAQD is proposing to consolidate credit user shortfall requirements under Sections 401.3. This section includes credit user requirements if a credit shortfall impacting the integrity of the MERCs is determined and options to address the shortfall. The intent of determining a VMT shortfall is to identify whether the generator is shifting baseline MERC vehicle activity level operations to a higher emitting vehicle, which would invalidate all or a portion of the issued MERCs. MCAQD is proposing to include a demonstration of continued compliance requirement, whereby the generator may provide demonstration to the Control Officer showing that the lower VMT was not a result of load shifting and the integrity of the MERCs continue. If the demonstration is approved by the Control Officer no further action is required. If the demonstration does not receive approval, the generator must notify the credit user who must then comply with the applicable VMT shortfall requirements in § 401.3. Comment 10 Off-road vehicles: The rule provides that qualifying emission reductions can be generated from either on-road or off-road vehicles. However, the calculation procedures provided in Appendix A only apply to on-road vehicles. In addition, since off-road vehicles are not registered, there are other issues related to ensuring any emission reductions are surplus and demonstrating these vehicles are permanently removed from the nonattainment area. Therefore, until these issues can be addressed, the off- road vehicle provisions in Rule 205 must be removed to ensure Rule 205 is fully approvable. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 20 of 125 Remedy 10 MCAQD is proposing to remove the off-road vehicle provisions in Rule 205. Comment 11 Reductions Occurring in EJ Communities: Appendix A, paragraph D. contains a provision which would allow a vehicle fleet located in an Environmental Justice (EJ) community to calculate the baseline emissions using the original fleet vehicle rather than a current model year vehicle. The rule requires use of current model year vehicle emissions as the baseline for granting ERCs to ensure the reductions are surplus to other attainment plan provisions that already take credit for fleet turnover. Since the use of an earlier model year vehicle as the baseline for calculating emission reduction credits would not ensure these reductions are surplus, this provision must be removed from the rule. Remedy 11 MCAQD is proposing to remove the High Pollution Area Incentive in Appendix A, paragraph D. from the rule. Comment 12 Base Year Inventory: The 2015 ozone attainment plan is based on a 2017 baseline emission inventory that includes input from the MOVES model using 2017 vehicle data. Therefore, credit cannot be given for any fleet conversion that occurred prior to 2017 or for any emission reductions the MOVES model has already credited for the transportation conformity demonstration. Rule 205 must explicitly contain this restriction. Remedy 12 MCAQD is proposing to revise the definition of Qualifying Emissions so that credit cannot be given for fleet conversions that occurred prior to 2017. Comment 13 Monitoring, Recordkeeping, and Reporting Requirements: CAA section 110(a)(2)(A) requires the elements of a SIP, including economic incentive programs, to be enforceable. 40 CFR 51.165(a)(3)(ii)(C)(1)(i) requires emissions reductions to be surplus, permanent, quantifiable, and federally enforceable to be creditable offsets. Rule 205 must therefore require sufficient monitoring, recordkeeping, and reporting provisions to ensure that the permitted generators and credit users are in compliance with the regulatory requirements and permit conditions, and it must provide that compliance data is made available to the public. While Rule 205 contains most of these provisions, additional specificity needs to be included. Section 503 – MERC Generation Monitoring, requires the generator to “monitor” certain information, but Section 504.3 needs further clarification to state the frequency of such monitoring, and requirements to retain a record of the monitored data. Rule 205 must be revised to provide more Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 19 of 123 Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 21 of 125 specificity to these two provisions. Section 504 – MERC Generation Records, requires the generator to maintain all records supporting their application for certified credits, and includes a list of minimum records requirements. However, the specified records may not be available at the time of application if a proposed emission generating project was not completed prior to application, as allowed by the rule. Because the rule provides the option to obtain a MERC prior to project completion, the language in this provision must be revised to ensure all records pertaining to the credit generation are maintained by the applicant and the Department even if they were not included in the original application. See Section 4.1(a) of the Federal EIP Guidance for additional information. Remedy 13 MCAQD is proposing to add specificity to Section 503 that monitoring shall begin no later than the issuance of the MERC certificate or enforceable date within the permit. MCAQD is also proposing to add additional specificity to Section 504.3 for monthly monitoring of VMT and a requirement to keep a summary of these records and any other monitoring of Section 503. MCAQD is proposing to revise Section 504.1 to ensure all records pertaining to the credit generation are maintained. Comment 14 Demonstrating Permanence: Section 503 – MERC Generation Monitoring, requires the generator to “monitor” the VMT for each replaced or retrofitted vehicle, but the rule does not contain any provisions which require the generator to continue to achieve the annual average VMT that was the basis for granting the MERC certificate. In part, permanence is assured by requiring the new fleet vehicles to achieve the same activity levels as the old fleet, which is demonstrated by ensuring the VMT for the new fleet remains at the same level or higher. Rule 205 is deficient because the rule does not require a fleet operator to demonstrate that they are achieving the same VMT used as the basis for granting their MERC certificate, which is inconsistent with enforceability requirements in CAA section 110(a)(2)(A) and 40 CFR 51.165(a)(3)(ii)(C)(1)(i). Rule 205 must be amended to require the generators ongoing compliance with the activity level that was the basis for MERC certificate issuance. Remedy 14 MCAQD is proposing to require the generator demonstrate that they are achieving the same VMT used as the basis for granting their MERC certificate by adding Section 505 Compliance Demonstration, where the generator is required to calculate a twelve-month rolling total of VMT. MCAQD is additionally proposing that the generator compare this VMT against their historic VMT under added Section 401.2, whereby the generator compares the twelve-month rolling VMT against the VMT specified in the MERC certificate. NOTE: As mentioned earlier, some of the EPA identified deficiencies and issues must be addressed in an EIP support document. Most of the final comments included in EPA’s Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 22 of 125 comment letter address EIP support document requirements although there are a few rule requirements included. Below is a list of the final comments in EPA’s comment letter and MCAQD’s proposals to address the comments. Comment 15 Identifying Violations: Section 110(a)(2)(A) requires the elements of a SIP, including economic incentive programs, to be enforceable. The regulations at 40 CFR 51.165 require emissions reductions to be surplus, permanent, quantifiable, and federally enforceable to be creditable offsets. Rule 205 relies on language that the generator or user “shall” or “must” do specific things, such as comply with the operating, maintenance, monitoring, removal/disposal, replacement, and recordkeeping requirements listed in Section 302.2. Thus, it would be a violation of the rule to not perform the required actions. At a minimum, the EIP support document must contain a robust discussion of how the Department will determine rule and program violations. The Department has raised concerns regarding the permitted generator being in violation of the requirement to achieve a certain VMT if in fact they are still achieving more emission reductions than the credit user is emitting in any 12-month period. Accordingly, the EPA believes that it is appropriate for the rule to include a two-step process to determine if a shortfall in VMT resulted in fewer emission reductions than the actual emission increases the credit user generated over the same 12-month period. The rule could provide that the generator is in violation of the requirement to generate a specific quantity of fleet VMT if two conditions are met: (1) the VMT achieved for any rolling 12-month period is less than the annual fleet VMT for which the MERC certificate was issued, and (2) the actual emissions generated by the permitted generator using these specific MERCs over the same time period are more than the emission reductions achieved by the actual VMT achieved. We believe this compliance option will provide some flexibility for both the permitted generator and credit user while still ensuring no adverse impacts to air quality. See Section 4.1(a) of the Federal EIP Guidance for additional information. Remedy 15 MCAQD will correct this deficiency by explaining in the EIP support document how MCAQD will identify rule and program violations. Comment 16 Penalty Provisions for Violations of the Rule: Rule 205 or the Department’s EIP support document must include provisions for imposing penalties for violations. The EIP support document must explain what constitutes a violation of Rule 205 and the procedures the Department will use to determine the magnitude of a violation and how potential penalties will be determined. The Department must demonstrate in the program support document that it has the authority and ability to impose a maximum monetary penalty of at least $10,000 per day per violation. The EIP support document must specify that it is a violation each and every day within the averaging period if a source does not meet any requirements of the rule (e.g., not creating sufficient Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 23 of 125 emission reductions, etc.) and specify the source may be subject to a monetary penalty of up to $10,000 per day per violation. The Department must retain the right to impose and collect a monetary penalty, although you do not need to exercise this right for all violations. See Sections 5.1(c) and 6.1 of the Federal EIP Guidance for additional guidance on the enforcement elements to be included in the Department’s EIP. Remedy 16 MCAQD will correct this deficiency by including the following in the EIP support document: (a) a description of how penalties are imposed for violations, (b) a description of what constitutes a violation of Rule 205 and the procedures MCAQD will use to determine the magnitude of a violation and how potential penalties will be determined, (c) a demonstration of the MCAQD’s authority and ability to impose a maximum monetary penalty of at least $10,000 per day per violation, and (d) an explanation that it is a violation each and every day within the averaging period if a source does not meet any requirement of the rule and provisions specifying that a source may be subject to a monetary penalty of up to $10,000 per day per violation. MCAQD will retain the right to impose and collect monetary penalties. Comment 17 Additional EIP Elements: This section lists provisions that we believe are needed for an EIP to be approved into the SIP. These provisions can be provided as a narrative in the EIP support document or in the rule, as noted below. See Section 5.1 of the Federal EIP Guidance for additional information. a. A discussion and demonstration of the environmental benefits of the Department’s EIP. See Section 6.5(a) of the Federal EIP Guidance for additional information. b. Because the Department’s EIP is a trading program that allows VOC HAPs to be shifted from one facility to another, the EIP support document must address certain elements related to VOC HAP emissions, including: (1) options for preventing and/or mitigating impacts from potential or actual trades involving HAPs; (2) what information will be made available for meaningful review and participation by the public; and (3) periodic program evaluations of the impacts of VOC HAP trades on the health and environment of local communities. See Section 16.2(b) of the Federal EIP Guidance for additional information. c. To avoid potential conflicts with EPA’s or citizens’ CAA enforcement authorities, Rule 205 must include the following statement in the section of the rule discussing enforcement: “Nothing herein restricts independent enforcement authorities under the Clean Air Act by other parties.” See Section 5.1(c) of the Federal EIP Guidance for additional information. d. The Department’s EIP must ensure that the public has access to emissions related information in a manner that allows them to easily and Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 24 of 125 accurately calculate the emissions or data relevant to the enforceable requirements of each participating source (i.e., both the credit generator and user). Rule 205 must contain a provision allowing the Department to obtain from the participating sources, all information necessary to calculate every source’s emissions (tonnage). How this information will be provided to the public may be included in the EIP support document as opposed to the rule. Remedy 17 MCAQD will correct the corresponding deficiencies outlined in the EPA’s March 25, 2024 letter as follows: a. MCAQD will correct this deficiency by providing a discussion and demonstration of the environmental benefits of the MCAQD’s EIP in the EIP support document. b. MCAQD will correct this deficiency by addressing the following elements in the EIP support document: (1) options for preventing and/or mitigating impacts from potential or actual trades involving HAPs; (2) what information will be made available for meaningful review and participation by the public; and (3) periodic program evaluations of the impacts of VOC HAP trades on the health and environment of local communities. c. MCAQD proposes to correct this deficiency by adding Section 402 to the rule which states: “Nothing herein restricts independent enforcement authorities under the Clean Air Act by other parties.” d. MCAQD will correct this deficiency by revising the rule to allow the Department to obtain from the participating sources all information necessary to calculate each permitted generator and credit user’s emissions (tonnage). MCAQD is proposing to require information be provided by the generator in the application under Section 301.1, including historic vehicle miles traveled, in order to be able to calculate source emissions. MCAQD may use this information along with MOVES generation of an emissions factor, which is proposed to be determined in Appendix A, to calculate a source’s qualifying emission reductions. A description of how this information will be provided to the public will be included in the EIP support document. Comment 18 Measuring and Tracking Results: The EIP must include procedures to measure and track results. We believe many of these provisions can be provided as a narrative in the EIP support document. Any provisions that must be included in the Rule 205 text are noted below. See Section 5.3 of the Federal EIP Guidance for additional information. a. The Department’s EIP support document must discuss how the Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 25 of 125 Department will ensure that the MERCs granted remain surplus to all other CAA requirements (e.g., have not been relied upon in other required CAA demonstrations) and how these MERCs may affect the air quality planning emissions inventories and transportation conformity. b. The Department’s EIP support document must discuss the relationship between the Department and Maricopa Association of Governments (MAG) in ensuring this program will comply with applicable CAA planning requirements, particularly concerning development of the required attainment plan and ongoing transportation conformity determinations. c. The Department’s EIP support document must also contain provisions to make public all information regarding issued MERCs. At a minimum, you must maintain a record (often referred to as a Banking Register) for each MERC issued pursuant to Rule 205. This MERC Register would contain the information listed above in Comment 3. See Section 6.5(d) of the Federal EIP Guidance for additional information. d. The Department’s EIP support document must include specific program evaluation procedures for the EIP. The Department is responsible for submitting a review of the EIP to EPA Region 9 every 3 years to determine its success and to address any identified deficiencies. Remedy 18 MCAQD will correct the corresponding deficiencies outlined in the EPA’s March 25, 2024 letter as follows: a. MCAQD will correct this deficiency by including in the EIP support document a discussion of how the Department will ensure that the MERCs granted remain surplus to all other CAA requirements and how these MERCs may affect the air quality planning emissions inventories and transportation conformity. b. MCAQD will correct this deficiency by including in the EIP support document a discussion of the relationship between MCAQD and Maricopa Association of Governments (MAG) in ensuring the EIP will comply with applicable CAA planning requirements. c. MCAQD will correct this deficiency by making clear in the EIP support document that the public has access to all information regarding issued MERCs. The Department will, at a minimum, maintain a record for each MERC issued pursuant to Rule 205. Such records will contain the information identified in commitment 3 above. d. MCAQD will correct this deficiency by providing in the EIP support document specific procedures for program evaluation of the EIP and submission of an EIP review to EPA Region 9 every three years. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 26 of 125 Comment 19 Enforcement Elements for EIPs: The Department’s EIP must include the following enforcement provisions. We believe many of these provisions can be provided as a narrative in the EIP support document. Because emission trading programs involve more than one party, the EIP support document must include provisions for identifying and assessing enforcement liability. Rule 205 currently refers to these parties as the “permitted generator” and the “user.” See Section 6.1 of the Federal EIP Guidance for additional information. a. The permitted generator must be liable for the truth and accuracy of the information provided in their application requesting the issuance of MERCs and in their monthly and annual recordkeeping and reporting requirements. b. The permitted generator must be liable for any shortfalls in achieving, on a 12-month rolling basis, the emission reductions for which the ERC certificate was granted. c. The user must be liable for any emission increases that are not fully offset based on a 12-month rolling comparison of the quantity of emission reductions achieved by the permitted generator and the amount of actual emissions emitted by the user for that particular project. Remedy 19 MCAQD will correct this deficiency by including in the EIP support document provisions specifying the following: (a) the permitted generator must be liable for the truth and accuracy of the information provided in their application requesting the issuance of MERCs and in their monthly and annual recordkeeping and reporting requirements, (b) the permitted generator must be liable for any shortfalls in achieving, on a 12-month rolling basis, the emission reductions for which the ERC certificate was granted, and (c) the user must be liable for any emission increases that are not fully offset based on a 12-month rolling comparison of the quantity of emission reductions achieved by the permitted generator and the amount of actual emissions emitted by the user for that particular project. The Rule 205 EIP support document will be available for review 30 days before the public hearing which is currently anticipated to be May 21, 2025. 5. Studies relied on in the control officer's evaluation of or justification for the rule and where the public may obtain or review the studies, all data underlying the studies, any analysis of the studies and other supporting material (A.R.S. § 49-471.05(5)). U.S. Environmental Protection Agency Region 9 (2024). Technical Support Document for EPA’s Notice of Proposed Rulemaking on Revision to the Arizona State Implementation Plan Regarding Rule 205, “Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits”, Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 27 of 125 https://www.regulations.gov/document/EPA-R09-OAR-2024-0311-0007 U.S. Environmental Protection Agency, “Improving Air Quality with Economic Incentive Programs” January 2001, https://www.regulations.gov/document/EPA-R09-OAR-2024-0311-0009 6. An economic, small business and consumer impact statement (A.R.S. § 49- 471.05(6)): The following discussion addresses each of the elements required for an economic, small business and consumer impact statement, as prescribed by A.R.S. §§ 41-1055, subsections A, B and C, and 41-1035: An identification of the proposed rulemaking, including all of the following (A.R.S. § 41-1055(A)(1)): This rulemaking is proposing to revise Rule 205 so that it can be approved into the Arizona SIP and it can be utilized to generate MERCs. (a) The conduct and its frequency of occurrence that the rule is designed to change (A.R.S. § 41-1055(A)(1)(a)). MCAQD is proposing to revise Rule 205 to remedy deficiencies identified by the EPA and to address stakeholder comments regarding the practicality and usability of the rule. The revisions are explained in more detail in Item #4 of this notice. (b) The harm resulting from the conduct the rule is designed to change and the likelihood it will continue to occur if the rule is not changed (A.R.S. § 41- 1055(A)(1)(b)). MCAQD is proposing to revise Rule 205 to remedy deficiencies identified by the EPA and to address stakeholder comments regarding the practicality and usability of the rule. Currently, there is a limited amount of VOC and NOx credits available in Maricopa County. The lack of available credits adversely impacts Maricopa County’s economy by limiting the ability of certain major stationary sources to locate or expand operations within Maricopa County. If Rule 205 is not revised and approved into the Arizona SIP, the ability for certain major stationary sources to locate or expand in Maricopa County will continue to be limited. (c) The estimated change in frequency of the targeted conduct expected from the rule change (A.R.S. § 41-1055(A)(1)(c)). MCAQD is proposing to revise Rule 205 to remedy deficiencies identified by the EPA and to address stakeholder comments regarding the practicality and usability of the rule. The revisions are explained in more detail in Item #4 of this notice. A brief summary of the information included in the economic, small business and consumer impact statement (A.R.S. § 41-1055(A)(2)). Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 28 of 125 Participation in the generation, certification, and utilization of MERCs is voluntary; however, the generation, certification, and utilization of MERCs from captive fleet vehicles must be done in compliance with the applicable provisions of Rule 205. This rulemaking and approval of this rule into the Arizona SIP is anticipated to have an overall positive impact on Maricopa County’s economy. The facilitation, generation, and certification of MERCs will allow more businesses wishing to construct new major sources or make major modifications to existing major sources in Maricopa County to meet the emission offset requirement of the CAA. In addition, the owner or operator of a captive fleet of vehicles that generates and certifies MERCs will benefit by being able to sell MERCs to the large businesses needing them for emissions offsets. Name and address of agency employees who may be contacted to submit or request additional data on the information included in the economic, small business and consumer impact statement (A.R.S. § 41-1055(A)(3)). Name: Will Adrian or Kimberly Butler Maricopa County Air Quality Department Planning and Analysis Division Address: 301 W. Jefferson St., Suite 410 Phoenix, AZ 85003 Telephone: 602-506-6010 Fax: 602-506-6179 Email: AQPlanning@maricopa.gov Online: Submit a Comment An identification of the persons who will be directly affected by, bear the costs of or directly benefit from the proposed rulemaking (A.R.S. § 41-1055(B)(2)). Participation in the generation, certification, and utilization of MERCs is voluntary; however, the generation, certification, and utilization of MERCs from captive fleet vehicles must be done in compliance with the applicable provisions of Rule 205. Both the generator and the credit user of the MERCs will bear the costs and benefits from the proposed revisions. The owner or operator of a captive fleet of vehicles that chooses to replace or retrofit captive fleet vehicles to reduce or eliminate emissions and generate MERCs will bear the costs associated with the cost to replace or retrofit the captive fleet vehicles; however, they will benefit from the ability to generate MERCs and, ultimately, sell the certified MERCs for a profit. The owner or operator of a major stationary source needing emission offsets will bear the cost of purchasing the certified MERCs but will benefit from the ability to construct a new major stationary source in Maricopa County or make a major modification to an Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 29 of 125 existing major stationary source in Maricopa County. A cost benefit analysis of the following: (a) The probable costs and benefits to the implementing agency and other agencies directly affected by the implementation and enforcement of the proposed rulemaking (A.R.S. § 41-1055(B)(3)(a)). The cost incurred by MCAQD to review MERC applications and certify MERCs are currently accounted for under the locally adopted version of Rule 205, § 401 Fees. MCAQD proposes to account for cost incurred by MCAQD to review ERC applications and certify ERCs moving forward through Rule 203 (Emission Reduction Credit (ERC) General Requirements) which was adopted on December 11, 2024. The cost incurred by MCAQD to inspect and verify compliance of the generator with Rule 205 has been accounted for by permitting costs incurred through § 301.2 Action on the Application of this rule and Rule 280 (Fees), which must be provided by the generator to ensure the permanency and enforceability of the certified MERCs. The cost to the Arizona Department of Environmental Quality (ADEQ) of administering the Arizona Emissions Bank has been, and is expected to continue to be, minimal as stated in ADEQ’s Notice of Final Rulemaking (25 A.A.R. 1433, June 14, 2019). (b) The probable costs and benefits to a political subdivision of this state directly affected by the implementation and enforcement of the proposed rulemaking (A.R.S. § 41-1055(B)(3)(b)). Participation in the generation, certification, and utilization of MERCs is voluntary. Nevertheless, in the event a political subdivision such as the City of Phoenix elects to become a generator they will bear the costs associated with the cost to replace or retrofit the captive fleet vehicles. Additionally, the political subdivision who is an owner or operator of a captive fleet of vehicles that chooses to replace or retrofit captive fleet vehicles to reduce or eliminate emissions and generate MERCs will bear the costs associated with ERC application processing and obtaining a new permit or permit revision to impose conditions to make reductions in qualifying emissions permanent and enforceable. However, the political subdivision who is an owner or operator of a captive fleet of vehicles will benefit from the ability to generate MERCs and sell the certified MERCs for a profit, which MCAQD expects will sufficiently offset the aforementioned costs. (c) The probable costs and benefits to businesses directly affected by the proposed rulemaking, including any anticipated effect on the revenues or payroll expenditures of employers who are subject to the proposed rulemaking (A.R.S. § 41-1055(B)(3)(c)). Participation in the generation, certification, and utilization of MERCs is voluntary; Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 30 of 125 however, the generation, certification, and utilization of MERCs from captive fleet vehicles must be done in compliance with the applicable provisions of Rule 205. Both the generator and the credit user of the MERCs will bear the costs and benefits from the proposed rulemaking. The owner or operator of a captive fleet of vehicles that chooses to replace or retrofit captive fleet vehicles to reduce or eliminate emissions and generate MERCs will bear the costs associated with the cost to replace or retrofit the captive fleet vehicles. Additionally, the owner or operator of a captive fleet of vehicles that chooses to replace or retrofit captive fleet vehicles to reduce or eliminate emissions and generate MERCs will bear the costs associated with ERC application processing and obtaining a new permit or permit revision to impose conditions to make reductions in qualifying emissions permanent and enforceable. However, the owner or operator of a captive fleet of vehicles will benefit from the ability to generate MERCs and sell the certified MERCs for a profit, which MCAQD expects will sufficiently offset the aforementioned costs. The owner or operator of a major stationary source needing emission offsets will bear the cost of purchasing the certified MERCs but will benefit from the ability to construct a new major stationary source in Maricopa County or make a major modification to an existing major stationary source in Maricopa County. A general description of the probable impact on private and public employment in businesses, agencies and political subdivisions of this state directly affected by the proposed rulemaking (A.R.S. § 41-1055(B)(4)). The probable impact on private and public employment in businesses directly affected by the proposed rulemaking is expected to be positive. The generation of more MERCs will allow more businesses to locate and expand in Maricopa County, thereby increasing the overall economic growth and expansion. A statement of the probable impact of the proposed rulemaking on small businesses. The statement shall include: (a) An identification of the small businesses subject to the proposed rulemaking (A.R.S. § 41-1055(B)(5)(a)). Participation in the generation, certification, and utilization of MERCs is voluntary; however, the generation, certification, and utilization of MERCs from captive fleet vehicles must be done in compliance with the applicable provisions of Rule 205. The small businesses subject to Rule 205 are the owners or operators of captive fleet vehicles that choose to reduce or eliminate emissions from gasoline and diesel-powered fleet vehicles. (b) The administrative and other costs required for compliance with the proposed rulemaking (A.R.S. § 41-1055(B)(5)(b)). Participation in the generation, certification, and utilization of MERCs is voluntary; Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 31 of 125 however, the generation, certification, and utilization of MERCs from captive fleet vehicles must be done in compliance with the applicable provisions of Rule 205. Administrative Costs: Small business choosing to generate and certify MERCs must comply with the application and recordkeeping requirements of the rule. Other Costs: Small business choosing to generate and certify MERCs will bear costs associated with the cost to replace or retrofit captive fleet vehicles and the cost of any monitoring equipment required by the rule to ensure the continued generation of MERCs. (c) A description of the methods that the agency may use to reduce the impact on small businesses (A.R.S. § 41-1055(B)(5)(c)). MCAQD has a business assistance (BA) program that provides administrative and technical assistance to business owners related to air quality rules and regulations. Courtesy site visits, on-site training, rule interpretation, and compliance assistance are offered to small businesses at no charge. i. Establish less stringent compliance or reporting requirements in the rule for small businesses (A.R.S. § 41-1035(1)). Participation in the generation, certification, and utilization of MERCs is voluntary; however, the generation, certification, and utilization of MERCs from captive fleet vehicles must be done in compliance with the applicable provisions of Rule 205. MCAQD is not aware of any less stringent compliance or reporting requirements. ii. Establish less stringent schedules or deadlines in the rule for compliance or reporting requirements for small businesses (A.R.S. § 41-1035(2)). Participation in the generation, certification, and utilization of MERCs is voluntary; however, the generation, certification, and utilization of MERCs from captive fleet vehicles must be done in compliance with the applicable provisions of Rule 205. MCAQD is not aware of any less stringent schedules or deadlines for compliance or reporting requirements. iii. Consolidate or simplify the rule's compliance or reporting requirements for small businesses (A.R.S. § 41-1035(3)). Participation in the generation, certification, and utilization of MERCs is voluntary; however, the generation, certification, and utilization of MERCs from captive fleet vehicles must be done in compliance with the applicable provisions of Rule 205. MCAQD is not aware of any way to consolidate or simplify the rule’s compliance or reporting requirements, but MCAQD provides the Business Assistance Program to provide information and technical assistance for permit holders including the small business community. iv. Establish performance standards for small businesses to replace design or operational standards in the rule (A.R.S. § 41-1035(4)). Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 32 of 125 Participation in the generation, certification, and utilization of MERCs is voluntary; however, the generation, certification, and utilization of MERCs from captive fleet vehicles must be done in compliance with the applicable provisions of Rule 205. v. Exempt small businesses from any or all requirements of the rule (A.R.S. § 41- 1035(5)). Participation in the generation, certification, and utilization of MERCs is and will remain voluntary. (d) The probable cost and benefit to private persons and consumers who are directly affected by the proposed rulemaking (A.R.S. § 41-1055(B)(5)(d)). This rulemaking will not impose any costs to private persons or consumers. The citizens and visitors to Maricopa County will benefit through the reduction of air pollutants and economic growth. A statement of the probable effect on state revenues (A.R.S. § 41-1055(B)(6)). The rulemaking will not impose increased monetary or regulatory costs on other state agencies, political subdivisions of this state, persons, or individuals so regulated. Without costs to pass through to customers, there is no projected change in consumer purchase patterns and, thus, no impact on state revenues from sales taxes. A description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed rulemaking, including the monetizing of the costs and benefits for each option and providing the rationale for not using nonselected alternatives (A.R.S. § 41-1055(B)(7)). MCAQD is not aware of any less intrusive or costly methods to achieve the purpose of this rulemaking. A description of any data on which a rule is based with a detailed explanation of how the data was obtained and why the data is acceptable data (A.R.S. § 41-1055(B)(8)). Not applicable. 7. The proposed effective date of the rule (A.R.S. § 49-471.05(7)): The proposed effective date of this rulemaking is May 21, 2025. 8. Such other matters as are prescribed by statute and that are applicable to the county or to any specific rule or class of rules (A.R.S. § 49-471.05(8)): Under A.R.S. § 49-479(C), a county may not adopt a rule or ordinance that is more stringent than the rules adopted by the Director of the Arizona Department of Environmental Quality (ADEQ) for similar sources unless it demonstrates compliance with the applicable requirements of A.R.S. §49-112. § 49-112 County regulation; standards Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 33 of 125 § 49-112(A) When authorized by law, a county may adopt a rule, ordinance or regulation that is more stringent than or in addition to a provision of this title or rule adopted by the director or any board or commission authorized to adopt rules pursuant to this title if all of the following requirements are met: 1. The rule, ordinance or regulation is necessary to address a peculiar local condition. 2. There is credible evidence that the rule, ordinance or regulation is either; (a) Necessary to prevent a significant threat to public health or the environment that results from a peculiar local condition and is technically and economically feasible. (b) Required under a federal statute or regulation, or authorized pursuant to an intergovernmental agreement with the federal government to enforce federal statutes or regulations if the county rule, ordinance or regulation is equivalent to federal statutes or regulation. 3. Any fee or tax adopted under the rule, ordinance or regulation does not exceed the reasonable costs of the county to issue and administer the permit or plan approval program. § 49-112(B) When authorized by law, a county may adopt rules, ordinances or regulations in lieu of a state program that are as stringent as a provision of this title or rule adopted by the director or any board or commission authorized to adopt rules pursuant to this title if the county demonstrates that the cost of obtaining permits or other approvals from the county will approximately equal or be less than the fee or cost of obtaining similar permits or approvals under this title or any rule adopted pursuant to this title. If the state has not adopted a fee or tax for similar permits or approvals, the county may adopt a fee when authorized by law in the rule, ordinance or regulation that does not exceed the reasonable costs of the county to issue and administer that permit or plan approval program. MCAQD is in compliance with A.R.S. §§ 49-112(A) and (B). The proposed rule revision does not increase stringency of requirements as the rule itself is voluntary for the generation of mobile source emission reduction credits. Additionally, the Director of the Arizona Department of Environmental Quality (ADEQ) has not adopted a mobile source emission reduction credit rule under the state’s regulations with which to compare the proposed rule revisions of Rule 205. 9. List of all previous notices posted to the Maricopa County EROP website addressing the proposed rule and a concise explanatory statement, as prescribed by A.R.S. § 49- 471.07(B): (a) List of all previous notices posted to the Maricopa County EROP website addressing the proposed rule: Notice Date of Posting Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 34 of 125 Briefing Notification to County Manager: November 22, 2021 Notices of Stakeholder Workshop: December 22, 2021 October 18, 2022 Notice of Board of Health Meeting: Notice of Proposed Rulemaking: Notice of Board of Health Meeting: Notice of Public Hearing: Briefing Notification to County Manager: Email Notification to Board of Health: Notice of Stakeholder Workshop: Notice of Proposed Rulemaking: January 10, 2022 December 7, 2022 January 9, 2023 March 15, 2023 April 9, 2024 September 3, 2024 September 3, 2024 February 26, 2025 (b) The following discussion addresses each of the elements required for a concise explanatory statement, as prescribed by A.R.S. § 49-471.07(B): i. A description of any change between the proposed rule or ordinance, the final rule or ordinance or notice of final supplemental rule or ordinance. No changes were made after the Second Notice of Proposed Rulemaking was published on February 26, 2025. ii. A summary of the comments and arguments for and against the notice and the county’s response to the comments and arguments. The following discussion evaluates the arguments for and against the rule and includes responses to comments received on the proposed rule or the preamble in the Second Notice of Proposed Rulemaking. MCAQD received written comments from two stakeholders. All of the comments were reviewed and evaluated by MCAQD. A link to a copy of the stakeholder comments is provided. Stakeholder #1: Comments #1 through #2 submitted on July 17, 2024. Comment #1: Given that part of the calculation description, it is going to be difficult to generate credits and in my opinion Rule 205 is internally inconsistent. Return to list of attachments Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 35 of 125 First, the definition of baseline emissions at 203 is: BASELINE EMISSIONS: The average rate at which a baseline vehicle would have actually emitted the pollutant in absence of generating emission reductions during the two preceding calendars years, or two calendar years more representative of normal emissions within the 5-year period immediately before the reduction in qualifying emissions. Which can be compared to the text that you highlighted from Appendix A. Baseline vehicle engine model year corresponds to the calendar year in which the emission reductions are generated by replacing or retrofitting the baseline vehicle. Changing the model year of the baseline vehicle from what it actually is (which is what defines what the vehicle would have “actually emitted”), to the current calendar year is not what we did for WM originally and would have precluded the generation of any significant MERCS. Response #1: MCAQD revised the definition of “Baseline Emissions” to include the original vehicle as follows: “The emissions an original vehicle has actually emitted, as determined in Appendix A, § A.” In addition, the “Baseline Pollutant Emissions Factor” under Appendix A was revised to include the “original vehicle engine model year” as an input under Appendix A, § A 3.(b). Comment #2: Another internal inconsistency can be found in the definition of replacement vehicle at 207: 207: REPLACEMENT VEHICLE: Vehicle used to generate certified credits that is certified to an emission limit less than the baseline vehicle it replaces and is in compliance with the most recent applicable federal emission standard at the time of replacement. If you have to use the same model year for the baseline and replacement vehicle, it’s generally going to be impossible to generate credits. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 36 of 125 What I think Appendix A should have said is: Baseline vehicle engine emissions are to be estimated based on the vehicle’s actual model year in the corresponds to the calendar year in which the emission reductions are generated by replacing or retrofitting the baseline vehicle. This is what was done for WM’s NG vehicles for both the baseline and the new vehicles. Response #2: MCAQD revised the definition of “Baseline Emissions” to include the original vehicle so the “baseline emissions” and “replacement vehicle” do not both reference the same model year. The definition reads as follows: “The emissions an original vehicle has actually emitted, as determined in Appendix A, § A.” In addition, the “Baseline Pollutant Emissions Factor” under Appendix A was revised to include the “original vehicle engine model year” as an input under Appendix A, § A 3.(b). Stakeholder #1: Comments #3 through #6 submitted on September 26, 2024. Comment #3: Intel is disappointed that there is not a Clean Diesel option to create MERCs in Rule 205. A new Clean Diesel engine can match the NOx reductions that CNG-powered engine can achieve (per MOVES). Response #3: Clean diesel is not restricted from generating credits in the provisions of the rule. Comment #4: Intel has a hard time understanding the intent of having a VMT requirement. If the Fleet owner of the associated MERCs does not change out vehicles with equal or cleaning burning engines they could end up taking joy rides around Phoenix just to meet their VMT requirement and this will actually result in higher emissions. Using that same logic the MERC buyer should get a higher amount of MERCs in years where the Fleet goes over its VMT requirement. Response #4: The intent of the VMT requirement is to ensure the activity level of the replacement vehicles remains the same, or close to the same, as the vehicles they replaced. This, in turn, ensures no load shifting occurs and the integrity of the MERCs continues. MCAQD added a definition of load Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 37 of 125 shifting which reads as follows: “Shifting of activity, measured in VMT, of a replaced or retrofitted vehicle for which a MERC certificate has been issued to a higher emitting vehicle.” MCAQD understands a generator may travel less miles than the VMT amount documented on the MERC certificate for a variety of reasons (i.e. more efficient routes, cancelled contracts, etc.). As such, MCAQD revised the rule to include a “Demonstration of Continued Compliance”, whereby a generator provides a demonstration to the Control Officer for approval to show that the lower VMT was not a result of load shifting and the integrity of the MERCs continue. If the demonstration is approved, then no further action is required. In the event load shifting has occurred, then further action must be taken to make up for a shortfall in emission reductions. Comment #5: Would of preferred off-road vehicles be in 205 ([Personal Name] also feels that way) but I get the timing element of why it isn’t. Response #5: Rule 205 originally allowed for the generation of qualifying emission reductions from off-road vehicles; however, EPA determined the rule did not contain adequate provisions to allow for it. The EPA requested the term “off-road” be removed from the rule and MCAQD removed it. EPA suggested in its Technical Support Document (TSD) incorporating off-road credit provisions in a separate EIP rule. MCAQD is currently revising Rule 204 (Emission Reduction Credit (ERC) Generation, Certification, and Use) to incorporate provisions allowing for the generation, certification, and use of ERCs from off-road vehicles. Comment #6: The other item I forgot about is it clear that the buyer of the credits only needs to produce extra credits if it is using 100% of its NOx limit. Response #6: MCAQD revised the rule under Section 401.3 b.(2), allowing the credit user or generator to submit an action plan to the Control Officer for approval if the emission reduction shortfall (ERS) is less than 10% of the total MERCs issued by the Department. This action plan may include documentation demonstrating the credit user’s actual emissions for the Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 38 of 125 specific NSR permit issuance that relied on MERCs are still sufficiently offset despite the VMT shortfall. Stakeholder #2: Comments #7 through #22 submitted on September 26, 2024. Comment #7: The proposed Appendix A, calculations for determining the credits, uses the actual model year for the baseline vehicles emissions which will likely increase the credits compared to the approach used in our 2021 project. This is favorable. Response #7: MCAQD appreciates your support for the rule revision. Comment #8: The compliance of point for our current MERC program is based upon vehicle replacement and not on the mileage. The Proposed Rule will change that as it requires as 12-mn VMT rolling calculation and if there is an emissions short fall then the credit generator and user must take prompt action to report, plan to resolve the short fall and if delays occur in resolving the shortfall the user may face permit modifications and/or compliance issues. Currently, the agreed upon methodology requires an annual evaluation of the mileage and calculation of the emission reduction. Increasing to monthly is time consuming and adding the compliance steps will be complex. Response #8: WMAZ’s ERC permit conditions contained within the SIP and the currently adopted version of Rule 205 both require monthly VMT (or hours of operation as an alternative in the permit conditions) to be tracked and recorded. As such, the proposed 12 month rolling total of VMT is not considered to be significantly more time consuming or burdensome. Additionally, MCAQD revised the rule requirements regarding VMT shortfalls providing the generator and credit user more flexibility to address VMT shortfalls. Comment #9: The 200 mile removal requirement from the Non-Attainment Area excludes cities like Tucson and Flagstaff which will likely be is too restrictive. At times WMAZ moves trucks from Phoenix to these areas. Other fleets may wish to do the same. This may limit participation in this voluntary rule. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 39 of 125 Response #9: The requirement to remove the original vehicle more than 200 miles outside the nonattainment area is included in the currently adopted version of Rule 205 and is not a proposed revision under this rulemaking. Additionally, this requirement ensures the original vehicle does not return to the nonattainment area and interfere with Maricopa County's progress towards attainment as is required by the CAA. Comment #10: 218 - add in “….any other adjustments (e.g. for load factors)…” after “…MOVES output emissions factors.” Response #10: As EPA states in its TSD, "a MERC generating rule must include specific methodologies for calculating emissions, describing what is to be measured and how, and how the measurements are to be documented and reported. The calculation methodology must also be specific." The suggested addition is not specific enough for rule approvability, however Section 302.1 d. does allow for the submission of an alternative calculation methodology which could include adjustments such as load factor. Comment #11: 219 – add a definition for “Ratio Adjusted Emission Factor” found in 401.3,a(2). Response #11: The term “Ratio Adjusted Emission Factor” was removed from the draft rule. Comment #12: 222 – add a clarification that the federal engine manufacturer emission standards are not applicable requirements for fleet operators. Response #12: As proposed in Section 302.2 d., the generator must subsequently replace replacement or retrofit vehicles with vehicles certified to the same, or lower, EPA emission standard. This is to ensure permanence of the emission reductions so that a higher emitting vehicle does not invalidate the qualifying emission reductions. The rule does not state that a generator must comply with a federal mobile source emission standard, only that they must continue to operate a vehicle with an equal or lower emission rate to ensure the validity of the issued MERCs. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 40 of 125 Comment #13: 301.2(c) – Please add text to clarify that our current process of amending vehicle lists as a administrative revision is not a modification requiring public participation and the revision steps in Section 407 of Rule 220. Response #13: Amendment of a vehicle list would require documentation in a compliance report but not a permit revision as the permit language would not need to be revised, and this amendment would not require public notice. Comment #14: 301.2(d)1(c) & 302.2(f) - Note that future completion dates for the replacement of vehicles are difficult to predict thus there needs to be some flexibility and leniency. When a permit is used for MERC enforcement, and if the completion date is in the permit is not met, it would be a permit violation. Often times these delays are outside of control of permitee. We recommend that a permit notification be allowed to modify this date, obviously coordinated with the MERC user to ensure that their start up needs are met. Response #14: Future completion date for implementation of replacement or retrofit vehicles is incorporated into the proposed rule. This is the intent of Section 301.3 b., whereby a MERC certificate and associated permit or permit revision include a future implementation date. A delay as described in the comment, could be addressed through an application for Non-Title V permit modification described in Rule 220, Section 400. When determining a future completion date, the generator should evaluate all potential implementation obstacles for an appropriate date. Additionally, it is important to note the credit user cannot commence operation of their permitted new source or modification until the generator has completed implementation of the qualifying emission reductions for which a MERC certificate was issued. In other words, a delay in the completion date will lead to a delay in commencement of operations for the credit user. Comment #15: 302.2(b)(3) & (4) – need to be removed. If the current version of GPS system and software is tracking vehicles then there is no reason to spend funds on a new system. System changes will have Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 41 of 125 unintended impacts across related GIS fleet systems, such as requiring equipment change outs conflicts with many other operation systems on the trucks. Additionally, we operate with the same GPS system nationally. The potential impact of this makes this an unreasonable request. Additionally, this is also more stringent that our current permit. Response #15: MCAQD revised Section 302.2 b. so that the fleet management system must be updated in accordance with manufacturer’s written instructions. This is intended to implement reasonable requirements for basic updating and maintenance of a location tracking system and software. Comment #16: 302.2(b)(c) – Using 200 miles means in all 4 directions of the edge of Nonattainment Area trucks could not be relocated in a metropolitan area in Arizona. The closest potential metropolitan areas would be in El Centro, CA, Las Vegas, NV, Farmington or Albuquerque, NM or in the county of Mexico. Basically, this prohibits areas like Tucson & Flagstaff which are in attainment. This may hurt the viability of the rule as it would rule out firms that may want to participate but cannot be due to distance logistics or financial impact. WMAZ proposes language that gives the generator the option of performing a demonstration or air modeling to show that original fleet vehicle operating closer will have no impact to the Maricopa non- attainment area. This is also more stringent that our current permit, and we have already moved units to Tucson as an example. Response #16: The requirement to relocate the original vehicle more than 200 miles outside the Maricopa County ozone nonattainment area helps ensure the permanence of the qualifying emission reductions, which is required under 40 CFR 51.165 for federal NSR offsets and in the current locally adopted rule version. The requirements of the rule will be applicable to certification of projects after rule adoption. Comment #17: 302.2(d) - The statement “The permitted generator shall further ensure that any replaced baseline vehicle that is subsequently replaced again, is not operated in any other captive fleet owned or operated Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 42 of 125 by the permitted generator in the applicable Maricopa County nonattainment area” should be removed as this is confusing, and any subsequent replacement would meet the low emissions rate approved in the MERC. Response #17: MCAQD removed the language from the draft rule. Comment #18: 401.2 - 12-month rolling VMT - a. Our current MERC program with Maricopa County is based upon vehicle/engine replacement and not on the mileage, and currently, the agreed upon methodology requires an annual evaluation of the mileage. Increasing that to monthly is time consuming and complex. Certainty if the mileage matches the application that is preferable, but it should not be point of compliance. This is a reasonable approach that will make the program viable. b. WM has spare trucks to replace out of service trucks and has a stable business within the non-attainment area; however, many companies may not have extras units readily available thus this requirement will likely be limiting the viability of ERC program. c. Moreover, if there are lower miles, the objective of lowering emissions is met, as CNG is 1/10th emissions of diesel, and participants in this voluntary program should not face compliance issues. d) Currently we are assessing the VMT and the emissions reductions on an annual basis which provides time for the fleets to assessment, make repairs or order replacements. e) Additionally, the VMT isn’t proportional to the overall emissions, as each vehicle will have a different emission factor, and then subsequent replacements will likely differ again. Therefore, a reduction in VMT doesn’t easily equate to a negative shortfall. Response #18: WMAZ’s ERC permit conditions contained within the SIP and the currently adopted version of Rule 205 both require monthly VMT (or hours of operation as an alternative in the permit conditions) to be tracked and recorded. As such, the proposed 12 month rolling total of VMT is not considered to be significantly more time consuming or burdensome. Regarding spare trucks, if a lower emitting vehicle is not available for a subsequent vehicle replacement to ensure emission reductions continue, then the MERCs may no longer be valid and the credit user may be required to Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 43 of 125 take some action to address the VMT shortfall. A business should be prepared to address the vehicle replacement requirement as part of their participation in the program. In order to address the generator operating at a lower VMT, MCAQD revised the rule to include a “Demonstration of Continued Compliance” whereby a generator provides a demonstration to the Control Officer for approval within 30 days of VMT shortfall discovery to show that the lower VMT was not a result of load shifting and the integrity of the MERCs continue. If the demonstration is approved, then no further action is required. In the event load shifting has occurred, then further action must be taken to make up for a shortfall in emission reductions. Load shifting is defined as follows: “Shifting of activity, measured in VMT, of a replaced or retrofitted vehicle for which a MERC certificate has been issued to a higher emitting vehicle.” In addition, MCAQD agrees there is not a direct correlation between VMT and emissions. Section 401.3 requires the credit user to calculate the Emission Reduction Shortfall (ERS) by subtracting the VMT achieved, as reported by the credit generator pursuant to § 401.2 a.(2), from the VMT required in the MERC certificate, and multiply the difference by the applicable qualifying Emission Reduction Emission Factor (EREF) specified in the MERC certificate. In this way, emission reduction shortfall is evaluated using actual vehicle engine emission factors in addition to VMT. Comment #19: 401.3 Credit User VMT – Note that the credit user will may have difficulty complying: 1) As an example, if WM provides Intel VMT short fall how would you calculate the emissions reduction from the short fall with just the VMT? 2) in (3) 10 days to develop a plan and the 3 months to resolve is not adequate time; if part of the solution is adding an extra vehicle that could take 9 months for the fleet owner. 3) requirement (4) requires a permit mod within 90 days to reduce emissions. This seems un-reasonable for a large and complex facility. Then in (5) missing these steps would be violation. Response #19: MCAQD revised the rule requirements regarding VMT shortfalls providing the generator and credit user more flexibility to address Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 44 of 125 VMT shortfalls. For example, Section 401.2 a.(2)(b)(i) allows the generator to provide a demonstration to the Control Officer to show that the lower VMT was not a result of load shifting and the integrity of the MERCs continues. If the demonstration is approved by the Control Officer, then no further action is required by either the generator or credit user. If the generator cannot provide such a demonstration, then the generator must notify the credit user of the VMT shortfall so the credit user can conduct a VMT shortfall evaluation. Comment #20: 504.3 – revise “current vehicle mileage” to “monthly vehicle mileage”. Response #20: “Current” vehicle milage is accurate for maintenance purposes and provides additional verification of actual VMT accrued. Comment #21: 505.3 – “the 10th of the month”, should be “10th day of the VMT calculation”. Response #21: “VMT Calculation” is not defined within the rule, and may add more complexity and confusion. Additionally, the compliance demonstration timeframe was changed to within 30 days of the end of the month. Comment #22: App. A, A,3 – 1) using the latest version of MOVES could create a difference from the MOVES used for a approved MERC application. Thus, we recommending using version of the MOVES from the MERC application. Response #22: EPA's Rule 205 TSD requires latest MOVES version at time of issuance, "The MOVES model is a key resource for both the ozone attainment plan and quantifying emission reductions. Therefore, Rule 205 must require that the latest version of MOVES be used when evaluating qualifying emission reductions for MERC issuance." Exact Wording of the Rule Note to reader: Two versions of the rule are included below. The first version is a strikethrough/underline version showing the intended actions to make new sections or amend, repeal, or renumber the sections of the rule. The second version is a clean version without the strikethrough/underline included for readability purposes. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 45 of 125 MARICOPA COUNTY AIR POLLUTION CONTROL REGULATIONS REGULATION II – PERMITS AND FEES RULE 205 (EMISSION OFFSETS GENERATED BY VOLUNTARY MOBILE SOURCE EMISSION REDUCTION CREDITSREDUCTIONS) INDEX SECTION 100 – GENERAL 101 PURPOSE 102 APPLICABILITY SECTION 200 – DEFINITIONS 201 ACCOUNT HOLDERBASE YEAR EMISSION INVENTORY 202 ARIZONA EMISSIONS BANK 203 BASELINE EMISSIONS 204 BASELINE VEHICLE 205 203 CAPTIVE FLEET 206 204 CERTIFIED EMISSION REDUCTION CREDIT USER 207 205 EMISSION REDUCTION CREDIT (ERC) or CREDIT 208 206 ENFORCEABLE 209 207 FLEET MANAGEMENT SYSTEM 208 GENERATOR 209 HISTORIC VEHICLE MILES TRAVELED (HVMT) 210 LOAD SHIFTING 211 MERC CERTIFICATE 212 MOBILE SOURCE EMISSION REDUCTION CREDIT (MERC) 210 213 MOVES Strikethrough/underline version Return to list of attachments Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 46 of 125 214 NONATTAINMENT AREA 215 OFFSETS 211 PERIODIC EMISSIONS INVENTORY 212 216 ORIGINAL VEHICLE 217 PERMANENT 213 PERMITTED GENERATOR 214 218 QUALIFYING EMISSIONS 215 219 QUANTIFIABLE 216 220 REAL 217 221 REPLACEMENT OR REPLACED VEHICLE 218 222 RETROFIT OR RETROFITTED VEHICLE 219 223 SURPLUS 224 VEHICLE SOURCE TYPE SECTION 300 – STANDARDS 301 CERTIFICATION OF CREDITS FOR MOBILE SOURCEQUALIFIED EMISSION REDUCTIONS BY A PERMITTED GENERATOR 302 MERC GENERATION 303 REGISTRATION OF CERTIFIED CREDITS IN THE ARIZONA EMISSIONS BANK 303 USE OF THE CERTIFIED CREDITSMERC CERTIFICATES SECTION 400 – ADMINISTRATIVE REQUIREMENTS 401 FEES 401 OFFSET INTEGRITY RESPONSIBILITIES 402 ENFORCEMENT AUTHORITY SECTION 500 – MONITORING AND RECORDS 501 RECORDKEEPING AND RECORDS RETENTION 502 INSPECTIONS Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 47 of 125 503 MERC GENERATION MONITORING 504 MERC GENERATION RECORDS 505 COMPLIANCE DEMONSTRATION APPENDIX TO RULE 205 APPENDIX A: – CALCULATIONS FOR DETERMINING EMISSION REDUCTIONS FROM EACH VEHICLE REPLACEMENT OR RETROFIT PROJECTS Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 48 of 125 Adopted 04/26/2023; Revised MM/DD/YYYY MARICOPA COUNTY AIR POLLUTION CONTROL REGULATIONS REGULATION II – PERMITS AND FEES RULE 205 EMISSION OFFSETS GENERATED BY VOLUNTARY MOBILE SOURCE EMISSION REDUCTIONS CREDITS SECTION 100 – GENERAL 101 PURPOSE: To facilitate the creation and trading of mobile source emission reduction credits (MERCs) for use as offsets by a stationary sourcesources under Rule 240 (Federal Major New Source Review (NSR)) of these rules by providing a process for: 101.1 Generating mobile source emission reduction credits forMERCs from qualifying NOx or VOC emissions reductions achieved by permitted generators. 101.2 Certifying creditsqualifying emission reductions as meeting offset requirements in advanceprior to issuance of a MERC certificate. 101.3 Issuance of MERC certificates, including the certified credits’ userequirements for that purposeMERC generators and MERC users. 101.3 Registering certified credits generated under this rule in the Arizona Emissions Bank. 101.4 Using certified credits generated under this rule registered in the Arizona Emissions Bank. 101.5 Using certified credits generated under this rule not registered in the Arizona Emissions Bank. 102 APPLICABILITY: The provisions of this rule shall apply to the following persons and entities: 102.1 The owner or operator of a captive fleet of vehicles who holds or intends to obtain a Maricopa County Air Quality Department Stationary Source Permit(MCAQD) stationary source permit (generator permit) and has achieved or will achieve reductions in qualifying emissions in compliance with this rule. 102.2 The owner or operator of a permittedany new major stationary source or major modification to an existing major stationary source that intends to use certified creditsMERCs as offsets. to obtain or revise a MCAQD stationary source permit (credit user permit). Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 49 of 125 SECTION 200 – DEFINITIONS: For the purpose of this rule, the following definitions shall apply in addition to those definitions found in Rule 100 (General Provisions and Definitions) of these rules.and Rule 203 (Emission Reduction Credit (ERC) General Requirements) of the Maricopa County Air Pollution Control Regulations (MCAPCR). In the event of any inconsistency between any of the Maricopa County Air Pollution Control Regulations, the definitions in this rule take precedence. 201 ACCOUNT HOLDER: Any person or entity who has opened an account with the Arizona Emissions Bank. 202 ARIZONA EMISSIONS BANK: The system created by the Arizona Department of Environmental Quality (ADEQ) to record and make publicly available information on the issuance, certification, transfer, retirement, and use of emission reduction credits. 203 201 BASE YEAR EMISSION INVENTORY: The emission inventory used for a specific nonattainment national ambient air quality standard (NAAQS) that is used for required attainment plan demonstrations and transportation conformity determinations. 202 BASELINE EMISSIONS: The average rate at which a baselineemissions an original vehicle would havehas actually emitted the pollutant, as determined in absence of generating emission reductions during the two preceding calendars years, or two calendar years more representative of normal emissions within the 5-year period immediately before the reduction in qualifying emissionsAppendix A, § A. 204 BASELINE VEHICLE: Captive fleet vehicle that has been replaced or retrofitted for a reduction in qualifying emissions. 205 203 CAPTIVE FLEET: A fleet of vehicles where all the vehicles in the fleet are identifiable, the locations where they are being operated can be tracked and recorded, using a fleet management system, such as a global positioning system (GPS), their base of operation is in a nonattainment area within the jurisdiction of MCAQD, and which can serve as a permanent source of emission reductions when a vehicle is replaced or retrofitted. The captive fleet can only include on-road or off-road vehicles. 206 CERTIFIED EMISSION REDUCTION CREDIT: An emission reduction credit that has met the criteria in this rule for certification and has been issued by the Maricopa County Air Quality Department (MCAQD). Certified credits do not have property rights associated with them. 207 204 CREDIT USER: The applicant for a stationary source permit or permit revision (credit user permit) that intends to use MERCs as offsets for compliance with federal New Source Review requirements pursuant to Rule 240 of these rules. 205 EMISSION REDUCTION CREDIT (ERC): A reduction in qualifying emissions, expressed in tons per year as rounded down to the nearest one tenth (1/10) of a ton, for which a permitted generator has submitted an application pursuant to this rule. MCAQD issues ERCs for mobile sources as MERCs. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 50 of 125 208 206 ENFORCEABLE: Specific measures for assessing compliance with an emissions limitation, control, or other requirement established in a permit or in this rule in a manner that allows compliance to be readily determined by, but not limited to, an inspection of records and reports. 209 207 FLEET MANAGEMENT SYSTEM: A system consisting of location tracking equipment and associated software. The system is used to track vehicle miles travelled (VMT) for fleet vehicles and is capable of distinguishing travel inside and outside the nonattainment area. 208 GENERATOR: The owner or operator of a captive fleet of vehicles that has obtained, or intends to obtain, a generator permit that has made, or proposes to make, reductions in qualifying emissions. 209 HISTORIC VEHICLE MILES TRAVELED (HVMT): The annual average VMT from the project’s original vehicles that make up the captive fleet. The annual average VMT shall be based on the annual actual VMT that occurred within the Phoenix-Mesa ozone nonattainment area, from the two preceding calendars years, or two calendar years more representative of normal operations within the 5-year period immediately before the reduction in qualifying emissions occurs. 210 LOAD SHIFTING: Shifting of activity, measured in VMT, of a replaced or retrofitted vehicle for which a MERC certificate has been issued to a higher emitting vehicle. 211 MERC CERTIFICATE: A document that certifies the issuance of MERCs by MCAQD in accordance with this rule, and includes the information specified in 301.3 b.(2). 212 MOBILE SOURCE EMISSION REDUCTION CREDIT (MERC): An ERC generated from a captive fleet vehiclevehicles. MERCs have no property rights associated with them. 210 213 MOVES: The latest version of the United States Environmental Protection Agency’s (EPA) Motor Vehicle Emission Simulator (MOVES) software. 214 NONATTAINMENT AREA: The Phoenix-Mesa ozone nonattainment area as defined in 40 CFR Part 81.303 for any ozone NAAQS. 215 OFFSETS: Reductions in actual emissions required under Rule 240 (Federal Major New Source Review (NSR)) of these rules. 211 PERIODIC EMISSIONS INVENTORY: In accordance with section 172(c)(3) of the Clean Air Act, the base year emissions inventory within the Maricopa County nonattainment area for the relevant conventional air pollutant or the most recent periodic update. 212 216 ORIGINAL VEHICLE: A captive fleet vehicle that has been, or will be, replaced or retrofitted, to generate qualifying emission reductions. 217 PERMANENT: A reduction in qualifying emissions used to offset emissions increases that are enduring for the remaining life of the corresponding emissions increase. For the Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 51 of 125 purposes of this rule, an actual reduction in qualifying emissions that endure for at least 20 years after the MERC certificate is issued. 213 PERMITTED GENERATOR: The owner or operator of a captive fleet of vehicles that has or intends to obtain a Maricopa County Air Quality Permit that has made or proposes to make reductions in qualifying emissions. 214 218 QUALIFYING EMISSIONS: Emissions of any conventional air pollutant quantifiedNOx or VOC emissions which are included in the periodic emissionscurrent ozone attainment plan base year emission inventory, other than elemental lead, or any precursor of a conventional air pollutant or any periodic update to such emission inventory, from any activityon road vehicle when generatedemitted within the Maricopa County nonattainment area associated with the conventional air pollutant. 215 219 QUANTIFIABLE: With respect to emissions, including the emissions involved in equivalent emission limits and emission trades, capable of being measured or otherwise determined in terms of quantity and addressed in terms of character. Quantification mayFor the purposes of this rule, quantification shall be based on MOVES output emission factors, for the baseline emissions, the replacement or retrofit vehicle emissions testing, monitored values, operating rates, and averaging times, materials used in a process or production, modeling, or other reasonable measurement practices.the VMT from the original vehicle. 216 220 REAL: A reduction in actual emissions previously released tointo the air resulting from a physical change or change to the method of operationsoperation by a permitted generator. 217 221 REPLACEMENT OR REPLACED VEHICLE: VehicleA vehicle that has, or will replace, an original vehicle, used to generate certified creditsqualified emission reductions, that is certified to an emission limit less than the baseline vehicle it replaces and is in compliance with the most recent applicable federal emission standard at the time of replacement. 218 222 RETROFIT OR RETROFITTED VEHICLE: Captive fleetAn original vehicle that has, or will have any, an alteration, including components, design, and instructions to perform this alteration, of the vehicle or engine, its fueling system, or the integration of these systems, that allows the vehicle or engine to operate on a fuel or power source different from the fuel or power source for which the vehicle or engine was originally certified; and that is designed, constructed, and applied in compliance with the applicable requirements in 40 CFR 85 and 86. 219 223 SURPLUS: A reduction in qualifying emissions below the emission limitations and standards used to comply with any otherwise federally applicable requirements and, including a required attainment plan, provided that the reduction is not relied upon to meet any requirements in the State Implementation Plan (SIP). 224 VEHICLE SOURCE TYPE: The specific type of vehicle, as listed in the most recent MOVES technical guidance document, including but not limited to: passenger cars and Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 52 of 125 trucks, light commercial trucks, transit buses, other buses, refuse trucks, single unit short- and long-haul trucks, and combination short- and long-haul trucks. SECTION 300 – STANDARDS 301 CERTIFICATION OF CREDITS FOR MOBILE SOURCEQUALIFIED EMISSION REDUCTIONS BY A PERMITTED GENERATOR: 301.1 MERC Application: a. The permitted generator may apply for certified credits for reductions in qualifying emissions for a vehicle replacement or retrofit that will comply with the applicable requirements in § 302 (MERC Generation) of this rule and by filing either of the following with the Control Officer in accordance with Rule 210 (Title V Permit Provisions) or Rule 220 (Non-Title V Permit Provisions) of these rules: (1) An application for a permit revision seeking the imposition of conditions to make the reductions in qualifying emissions permanent and enforceable; or (2) An application for a permit seeking the imposition of conditions to make the reductions in qualifying emissions permanent and enforceable. b. An application for certified creditsobtain MERCs shall be filed withsubmitted to the Control Officer on the form prescribed by the MCAQD and shall include: (1) Information on the identity, type, ownership, and location of the permitted generator; (2) InventoryAn inventory of the captive fleet, asincluding all information specified in § 504.2, for which a replaced or retrofitted vehicle resulted, or will result, in reductions in qualifying emissions; (3) A description of the vehicle replacementreplacements or retrofits that have resulted, or will result, in surplus reductions in qualifying emissions, as well as a description of how the reductions in qualifying emissions will be permanent; (4) Information on the methodology for quantifying the surplus reductions in qualifying emissions for each pollutant subject to the application, including emissions calculations, documentation of each original vehicle’s historic vehicle miles traveled, and how these rates were determined; (5) Information on the proper removal or disposal of baselineoriginal vehicles if the reductions in qualifying emissions were accomplished, or will be accomplished, through vehicle replacement; Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 53 of 125 (6) Information on the retrofit conversion systemprocess used, or to be used, if the reductions in qualifying emissions will be accomplished through vehicle retrofit; (7) Other information or records necessary to verify that the reductions in qualifying emissions qualify as permanent, quantifiable, surplus, federally enforceable, and real; (8) The actual date or anticipated date of the reductions in qualifying emissions, occurred, or will occur, as applicable; and (9) A signed statement by a responsible official, as defined in Rule 100 (General Provisions and Definitions) of these rules, verifying the truthfulness and accuracy of all information provided in the application. 301.2 Action on Application: The Control Officer shall review the application for certified credits and: a. EvaluateThe Control Officer shall review the application for MERCs and evaluate whether the requested MERCs proposed qualifying emission reductions will beresult in real, quantifiable, federally enforceable, permanent, and surplus emission reductions, and determine whether the MERCs meet the requirements of § 302 for generating MERCs. b. If the Control Officer determines the requested credits will result in real, quantifiable, federally enforceable, permanent, and surplus emission reductions, the generator shall submit an application with the Control Officer in accordance with the requirements of Rule 210 (Title V Permit Provisions) or Rule 220 (Non-Title V Permit Provisions) of these rules seeking either a permit revision or new permit to impose conditions to make the reductions in qualifying emissions permanent and enforceable. 301.3 Generator Permit and MERC Certificate: The Control Officer, upon completion of evaluation of the applications under § 301.2, shall perform the following: a. Provide public participation on the Control Officer’s proposed determination to issue certified creditsMERCs, and a generator permit or permit revision, per the provisions in Section§ 407 of Rule 220 of these rules. This requirement applies to all proposed actions to issue certified creditsMERCs according to this rule. The proposed determination shall include the proposed generator permit or permit revision, and the Control Officer’s underlying analysis for proposing to certify the MERCs. b. Upon completion of § 301.3 a., if the Control Officer determines the requested credits meet the requirements of this rule§ 301.2 a. and should be certified, then the Control Officer shall: (1) Issue either a generator permit or permit revision that incorporates the requirements of § 302.2, and any other necessary requirements to make Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 54 of 125 the reductions in qualifying emissions permanent and enforceable.federally enforceable. The generator permit or permit revision shall include the following: (a) The quantity of VMT used to determine the number of MERCs issued; (b) The qualifying emission reduction emission factor for each vehicle type and engine model year in the fleet in grams/mile, as calculated pursuant to Appendix A, § D; and (c) The date by which the qualifying emission reductions are required to be implemented. (2) Issue one certified credit for each tona MERC certificate for the total tonnage of MERCs, as rounded down to the nearest one tenth (1/10) of a ton, per year of reduction. The MERC certificate shall include the following information: MERC certificate number, date of issuance, name and address of the generator, description of activity that qualifies as permanent, quantifiable, surplus, federally enforceableresulted in the qualified emission reductions, and real. (3) Provide the applicant with a certificate representing the number of certified creditsMERCs issued. The MERC certificate shall specify that the credits were certified under this rule, and shall specify whether the reductions in qualifying emissions have been implemented or the date by which the reductions are required to be implemented. In addition, the certificate shall include the following: (a) The quantity of VMT used to determine the number of MERCs issued; (b) The qualifying emission reduction emission factor for each vehicle type and engine model year in the fleet in grams/mile, as calculated pursuant to Appendix A, § D; (c) A statement that the new stationary source relying on the emissions offsets from a MERC may not commence operation until the emissions reductions corresponding to that MERC have actually occurred; and (d) A statement that the MERC does not provide any property rights. c. If the Control Officer determines that none of the requested MERCs should be certified, then the applicant will be notified, and no credits will be issued and noneither a generator permit or, nor permit revision, will be issued. 301.34Registration of Certified CreditsMERCs in the Arizona Emissions Bank: A MERC Certificate (Certified credits) may be registered in the Arizona Emissions Bank but registration is not required. See § 303 (RegistrationSee Rule 203 (Emission Reduction Credit (ERC) General Requirements) of Certified Credits in the Arizona Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 55 of 125 Emissions Bank) of this rulethese rules for procedures regarding registration of certified creditsMERCs in the Arizona Emissions Bank. 302 MERC GENERATION: A permitted generator that plans to replace or retrofit all or part of their captive fleet to generate a reduction in qualifying emissions reductions: 302.1 May apply to certifyfor issuance of MERCs by meeting the following requirements: a. Location: Demonstrate that the captive fleet of vehicles used to generate credits shall beMERCs are based and operated within athe nonattainment area within the jurisdiction of the MCAQD. Certified credits. MERCs may only be granted for those reductions generated while operating in the nonattainment area. A baseline vehiclesAn original vehicle’s operation inside and outside the nonattainment area must be quantifiable. b. Quantification of Baseline Emissions: The permitted generator shall quantify baseline emissions for each original vehicle within the captive fleet that will be replaced or retrofitted following the calculation methodology in Appendix A (Calculations for Determining Emission Reductions from Each Vehicle Replacement or Retrofit) of this rule. c. Quantification of Emission Reductions: (1) The permitted generator shall quantify the post project emissions for each original vehicle within the captive fleet that will be replaced or retrofitted followingusing the calculation methodology specified in Appendix A (Calculations for Determining Emission Reductions from Each Vehicle Replacement or Retrofit) of this rule. (2) Calculations shall only include surplus reductions and shall not include emission reductions created or used under any other emissions trading program, emission reductions used to satisfy the State Implementation Plan including transportation conformity requirements, or any emissions reductions pursuant to a federal consent decree, or state and local settlements. d. Alternative Calculation Methodology: A permitted generator may use an alternative calculation methodology to quantify emission reductions upon approval from the Control Officer and the Administrator. All alternative calculation methodologies shall be submitted to the Administrator after completion of the public participation process in § 301.2,3 a., and shall include any public comments received and the Control Officer’s response to the public comments. The Administrator shall be provided 60 days to review the submittal. Written approval from the Administrator is requiredmust be obtained prior to using an alternative calculation methodology. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 56 of 125 302.2 Shall comply with all of the following installation, operating, maintenance, monitoring, removal/disposal, replacement, and recordkeeping requirements: a. Operation and Maintenance: The permitted generator shall operate and maintain the replacement and/or retrofitted vehicles in accordance with the manufacturer’s written instructions, or the maintenance schedule provided by the manufacturer’s authorized service provider. b. Monitoring of Captive Fleet: Management System: (1) Fleet Management System Installation, Operation, and Maintenance: (a) The permitted generator shall monitor install and maintain a fleet management system capable of tracking and recording the replacementlocation and VMT of each replaced or retrofitted vehicles invehicle for which a MERC certificate is issued. The system must differentiate and record travel within and outside of the captive nonattainment area; (b) The generator shall operate the fleet usedmanagement system to generate credits as specified in § 503 to ensure the monitor and record the monthly VMT within the nonattainment area for each replaced or retrofitted vehicles continue to generate permanent emission reductions as represented in the application in § 301.1(b)(3).vehicle for which a MERC certificate is issued; and (c) The generator shall update, operate and maintain the fleet management system in accordance with the manufacturer’s written instructions. (2) Fleet Management System Exemption: A generator may be exempt from compliance with the fleet management system requirements of 302.2 b.(1) if captive fleet operations for which a MERC certificate is issued occur entirely within the nonattainment area. The generator must submit to the Control Officer for approval documentation demonstrating the operations occur entirely within the nonattainment area. Such documentation may include, but is not limited to, local regulation or company policy restricting VMT to within the nonattainment area. In addition, the generator must demonstrate how the monthly VMT will be monitored and recorded in absence of a fleet management system. c. Removal/Disposal of Replaced BaselineOriginal Vehicles that were Replaced: The permitted generator shall permanently remove any baseline vehicles replaced from the applicable nonattainment area or render the baselineThe generator shall remove or dispose of all original vehicles for which a MERC was issued. Removal shall consist of permanently removing all original vehicles at least 200 miles from the nonattainment area. Disposal shall consist of rendering the original vehicles permanently disabled and Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 57 of 125 disposedisposed of in a manner that complies with all applicable local, state, and federal laws. The permittedOriginal vehicles shall not be relocated to any current ozone nonattainment area, as designated on the date of MERC issuance. The generator shall maintain documentation demonstrating proper removal or disposal of the baselineall original vehicles. To demonstrate a baselinean original vehicle was properly removed from the nonattainment area, the documentation shall include a bill of sale, vehicle registration, or other transfer documentation demonstrating the vehicle has been removed greater than 200 miles away from all Maricopa County nonattainment areasremoved vehicle complies with the location requirements described above. d. Subsequent Vehicle Replacements: The replacement or retrofitted vehicles that were used to acquire certified creditsMERCs shall only be subsequently replaced with vehicles certified to an emission limit equivalent tothe same, or less than the replacement or retrofitted vehicle used to acquire certified credits and shall comply with the most recent applicable federallower, EPA emission standard. This replacement requirement shall continue for 20 years from the issuance date of the certified credits. The permitted generator shall further ensure that any replaced baseline vehicle is not operated in any other captive fleet owned or operated by the permitted generator in the applicable Maricopa County nonattainment area.MERC certificate. e. Vehicle Retrofit: The permitted generator shall ensure the retrofit vehicle used for generating certified creditsMERCs satisfies the exemption from tampering prohibition of clean alternative fuel conversions through compliance with 40 CFR 85, Subpart F, and a valid corresponding certificate of conformity or notification submission to the EPA. f. Timing: The permitted generator shall demonstrate that the vehicle replacements or retrofits, and removal/disposal of baselineoriginal vehicles, occurred prior to the application for certified credits or shall meet an enforceable timeline established in the permit or permit revision required by § 301.2(c)(1) that specifies how and by when this demonstration will be met.either: (1) The application for MERCs; or (2) The enforceable date established in the generator permit or permit revision required by § 301.3 b.(1)(c) that specifies the date by which reductions in qualifying emissions must be implemented. g. Monitoring and Recordkeeping: Upon issuance of a generator permit or permit revision under this rule, a permitted generator is responsible for creating and maintaining records from their captive fleet monitoring and recordkeeping as required in: (1) Section 501 (Recordkeeping and Records Retention); Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 58 of 125 (2) Section 502 (Inspections); (3) Section 503 (MERC Generation Monitoring); and (4) Section 504 (MERC Generation Records).; and (5) Section 505 (Compliance Demonstration). 303 REGISTRATION OF CERTIFIED CREDITS IN THE ARIZONA EMISSIONS BANK: The permitted generator may register certified credits with the Arizona Emissions Bank. To register a certified credit: 303.1 Owner or Operator: The permitted generator shall: a. Indicate on the MCAQD emission reduction credit application their plan to register the certified credits in the Arizona Emission Bank; and b. Open an Arizona Emissions Bank account per A.A.C. R18-2-1206.A. 303.2 Control Officer: The Control Officer shall notify the ADEQ of the number of certified credits issued to the permitted generator on a form prescribed by the ADEQ. 303 USE OF THE CERTIFIED CREDITS:MERC CERTIFICATES 304.1 Certified Credits Registered in the Arizona Emissions Bank: a. An account holder who intends to use the certified credits under this rule held in its account as offsets shall file an application to use the certified credits on the form prescribed by the ADEQ. b. On approval of the application by the ADEQ, the Control Officer shall review the certified credits under Section 304 of this rule and either: (1) Approve the use of the certified credits as offsets under Rule 240 (Federal Major New Source Review) of these rules and: (a) Notify the user of certified credits that may be included in the permit or permit revision application of the stationary source; and (b) If there are any remaining available certified credits, the Control Officer will reissue the certificate with a sequential revision number. This will provide documentation on the availability of the remaining certified credits. (2) Deny the use of the certified credits for offsets under Rule 240 (Federal Major New Source Review) of these rules and: (a) Provide written notification of the reason for denying the use of the certified credits as offsets; and Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 59 of 125 (b) If there are any remaining available certified credits, the Control Officer, as applicable, will return the certificate to the owner or operator of the stationary source or reissue the certificate with a sequential revision number. This will provide documentation on the availability of the remaining certified credits. c. The Control Officer shall provide notice to the ADEQ of the final action on the stationary source’s application for a permit or for a permit revision and of any changes in the number of certified credits. d. Reductions in qualifying emissions reflected in the number of certified credits shall be implemented before actual operation of the new stationary source or modification begins. 304.2 Certified Credits Not Registered in the Arizona Emissions Bank: a. The owner or operator of a stationary source who intends to use certified credits that are not registered in the Arizona Emissions Bank as offsets shall: (1) Notify the MCAQD of the intention to use the certified credits as an offset to meet the requirements of Rule 240 (Federal Major New Source Review) of these rules; and. (2) Submit the certificate of issued certified credits to the MCAQD in conjunction with a stationary source permit application or permit revision. b. The Control Officer shall review the certified credits under Section 304 of this rule and either: (1) Approve the use of the certified credits as offsets under Rule 240 (Federal Major New Source Review) of these rules and: (a) Notify the owner or operator of the number of certified credits that may be included in the permit or permit revision application of the stationary source; and (b) If there are any remaining available certified credits, the Control Officer will reissue the certificate with a sequential revision number. This will provide documentation on the availability of the remaining certified credits. (2) Deny the use of the certified credits for offsets under Rule 240 (Federal Major New Source Review) of these rules and: (a) Provide written notification of the reason for denying the use of the certified credits as offsets; and (b) If there are any remaining available certified credits, the Control Officer, as applicable, will return the certificate to the owner or operator of the Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 60 of 125 stationary source or reissue the certificate with a sequential revision number. This will provide documentation on the availability of the remaining certified credits. 304.3 First In, First Out Accounting: The owner or operator of the stationary source using certified credits must use the oldest credits in their possession first. 303.1 General Use Requirements: See Rule 203 (Emission Reduction Credit (ERC) General Requirements) of these rules for procedures regarding the use of MERCs as offsets to comply with the NSR requirements of Rule 240. 304.4 Review303.2 Review of MERC Integrity: At the time of use of certified credits under this rulePrior to issuing a credit user permit, the Control Officer shall reviewverify that the amount of previouslyMERCs issued certified creditsin the surrendered MERC certificate remain surplus under(as defined in this rule) as of the date of permit issuance, and shall revise the MERC certificate amount if necessary to maintain surplus integrity. Any certified creditsMERC certificate proposed to be used where the reductions in qualifying emissions were not implemented at the time of MERC application shall only be used if the MERC certificate states that the emission reductions will be implemented beforeon a date prior to the date the new stationary source or modification using the credits beginsplans to commence operation of the new source or modification. 303.3 Credit User Commencement of Operation: The credit user shall not commence operation of their permitted new source or modification until the generator has demonstrated compliance with § 401.1. SECTION 400 – ADMINISTRATIVE REQUIREMENTS 401 FEES 401.1 A fee may be charged for the following: a. Preliminary ERC Calculations Review: For all time required by the Control Officer to review the ERC calculations, at a rate of $149.20 per hour and adjusted annually under § 401.2 of this rule. When review of ERC calculations is complete the Control Officer shall send an itemized invoice. The invoice shall indicate the total cost of reviewing ERC calculations and the balance due. b. ERC Application Processing (for Certification): (1) The minimum fee due shall be an application fee of $200. (2) For all time required by the Control Officer to review the ERC calculations, at a rate of $149.20 per hour and adjusted annually under § 401.2 of this rule. When application processing is completed and final costs are greater than the combined fees under §§ 401.1a and b(1) of this rule, the Control Officer shall send an itemized invoice. The invoice shall indicate the total Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 61 of 125 cost of evaluating and acting upon the application, minus the fee submitted under § 401.1a of this rule, and the balance due. c. Permit: Permit fees applicable to either §§ 301.1a or b of this rule, as set forth in Rule 280 (Fees) of these rules. 401.2 Fee adjustments: The Control Officer shall adjust the hourly rate in §§ 401.1a & b every January 1, to the nearest 10 cents per hour, beginning on January 1, 2018. The Control Officer will multiply $149.20 by the Consumer Price Index (CPI) for the most recent year and then divide by the CPI for the year 2016. 401 OFFSET INTEGRITY RESPONSIBILITIES: 401.1 Generator Implementation Notification: The generator shall provide written notification to the Control Officer and credit user within 48 hours of completing implementation of the qualifying emission reductions for which a MERC certificate was issued under this rule, and provide documentation demonstrating compliance with §§ 302.2 b., 302.2 c., 302.2 e., and 302.2 f.(2), as applicable. 401.2 Generator Monthly VMT Review Requirements a. For each calendar month, the generator shall review the 12-month rolling VMT as calculated in § 505 to determine if the 12-month rolling VMT achieved by the generator equals, or exceeds the quantity of VMT specified in their MERC certificate. (1) If the 12-month rolling VMT achieved by the generator is equal to or greater than the quantity of VMT specified in their MERC certificate, the generator shall record the results pursuant to § 505. No further action is required. (2) If the 12-month rolling VMT achieved by the generator is discovered to be less than the quantity of VMT specified in their MERC certificate, the generator shall: (a) Provide a copy of the data to the Control Officer within 5 business days of the date of discovery showing the total 12-month rolling VMT achieved; and (b) Comply with one of the following: (i) DEMONSTRATION OF CONTINUED COMPLIANCE: The generator shall provide a demonstration to the Control Officer for approval within 30 days of VMT shortfall date of discovery to show that the lower VMT was not a result of load shifting and the integrity of the MERCs continue. If the demonstration is approved by the Control Officer no further action is required. If the demonstration does not Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 62 of 125 receive approval, the generator shall notify the credit user, as described in § 401.2 a.(2)(b)(ii). (ii) CREDIT USER NOTIFICATION: The generator shall notify the credit user of the VMT shortfall within 5 business days of the date of discovery or within 5 business days of receiving a disapproval of the demonstration of compliance from the Control Officer. The credit user shall conduct the VMT shortfall evaluation as described in § 401.3. 401.3 Credit User VMT Shortfall Evaluation a. If the credit user is notified by a generator, pursuant to § 401.2 a.(2)(b)(ii), that their 12-month rolling VMT is less than the quantity of VMT specified in the corresponding MERC certificate relied upon for NSR permit issuance, then the credit user shall satisfy the requirements of § 401.3 b. b. Conduct the following calculations and analysis: (1) Calculate the Emission Reduction Shortfall (ERS) by subtracting the VMT achieved, as reported by the credit generator pursuant to § 401.2 a.(2), from the VMT required in the MERC certificate, and multiplying the difference by the applicable qualifying Emission Reduction Emission Factor (EREF) specified in the MERC certificate. Where: ERS in tons/yr = [(required VMT - achieved VMT) x EREF (in grams/mile)]/907,184.74. (2) If the calculated ERS in 401.3 b.(1) is less than 10% of the total MERCs issued by the Department to the generator under Section 301.3 b.(2), then the credit user or generator shall submit an action plan to the Control Officer for approval within 15 days of notification by the generator describing how the offset emissions shortfall will be remedied no later than 3 calendar months after the calendar month that the VMT shortfall occurred. This may include documentation demonstrating the credit user’s actual emissions for the specific NSR permit issuance that relied on MERCs are still sufficiently offset despite the VMT shortfall. A credit user or generator that is required to submit a plan by this section must fully comply with the plan, which has been submitted but not yet been approved, unless notified otherwise by the Control Officer in writing. (3) If the calculated ERS in 401.3 b.(1) is 10% or higher of the total MERCs issued by the Department to the under Section 301.3 b.(2), or MCAQD does not receive an action plan to comply paragraph (2) of this section, or MCAQD does not approve the action plan submitted pursuant to paragraph (2) of this section, then the credit user shall submit a permit application within 90 days of notification by the Control Officer that provides an equivalent quantity of reductions as the ERS determined under section 401.3 b.(1). This may be accomplished by any combination of the following: Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 63 of 125 (a) Permanently reducing emissions by revising existing permit emission or throughput limits; or (b) Providing valid ERCs or MERCs in a quantity equivalent to the ERS determined under section 401.3 b.(1). (4) A credit user that operates without adequate offsets is in violation of these rules. 402 ENFORCEMENT AUTHORITY: Nothing herein restricts independent enforcement authorities under the Clean Air Act by other parties. SECTION 500 – MONITORING AND RECORDS 501 RECORDKEEPING AND RECORDS RETENTION: RecordsThe records and data required by this section shall be: 501.1 Kept on site at all times by the permitted generator in a consistent and complete manner, in either electronic or paper format. 501.2 UponMade available to the Control Officer no later than five business days upon verbal or written request by the Control Officer, the log or the records and supporting documentation shall be provided as soon as possible but no later than 48 hours after the request. 501.3 Unless otherwise specified, maintained for five (5) years after the record is created. 501.4 Maintained without falsification. 501.5 Made available to the Control Officer upon written request by members of the public using the County’s public records request process. 502 INSPECTIONS: A permitted generator shall provide the Control Officer with access to the premises for the purpose of conducting an inspection to verify compliance with this rule. An inspection may include, but is not limited to, a review of records and reports. 503 MERC GENERATION MONITORING: The permitted generator shall monitor parameters used to quantify certified creditsMERCs beginning no later than issuance of the certified credits. All monitoring equipment shall be operated and maintainedMERC certificate or the enforceable date established in accordance with the manufacturer’s written instructions.the generator permit or permit revision required by § 301.3 b.(1). At a minimum, the permitted generator shall monitor the following for each replaced or retrofitted vehicle used for obtaining certified creditsa MERC certificate: 503.1 Vehicle miles traveled (VMT) as determined by GPS tracking; 503.2 Percent of VMT within the nonattainment area as determined by GPS tracking; and Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 64 of 125 503.1 VMT within the nonattainment area as determined by the fleet management system or alternative method for a generator exempt from the fleet management system requirements; 503.23Any other parameter used to make the certified creditsMERCs quantifiable, such as idling speed, idling emissions, or fuel use rate. 504 MERC GENERATION RECORDS: A permitted generator shall maintain the following records offor each replacement or retrofitted vehicle in its captive fleetfor which a MERC certificate was issued: 504.1 Certified Credit RecordsMERC Documentation: All records supportingsubmitted with the application for which certified credits were granted, including but not limited to: documentation of when a vehicle was retrofitted or replaced, documentation that the baselineoriginal vehicle or baselineoriginal vehicle engine was disposed of orproperly removed fromand/or destroyed, as required by § 302.2 c., and documentation demonstrating the nonattainment area, VMTHVMT for each baselineoriginal vehicle used to generate credits, and percent of VMTthat occurred within the nonattainment area for each baseline vehicle used to generate credits. The. These records shall be maintained for at least 5five years followingafter the use of the certified creditsMERCs to obtain a NSR permit, regardless of any defenses under any federal or state statute of limitations. 504.2 ReplacementReplaced or Retrofitted Vehicle Inventory Records: A detailed inventory of each replacementreplaced or retrofitted vehicle used to generate certified credits thatMERCs shall include all of the following information and shall be reviewed and updated on a monthly basis: a. For each fleetreplaced or retrofitted vehicle provide: (1) The vehicle manufacturer. (2) The model number. (3) The model year. (4) A description of the The vehicle including serialsource type. (5) Serial number. (56)Fuel type. b. The date each replaced or retrofitted vehicle was: (1) Added to the inventory and began operation. (2) Removed from the inventory. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 65 of 125 c. ForAfter the initial project, for each vehicle added to the inventory: (1) Identify the vehicle removed in its place. (2) The permitted generator must document that the replacement vehicle is certified to equivalent or lower standards than the vehicle or engine used to generate certified creditsMERCs. 504.3 Operational Records: The following operational records shall be maintained on a monthly basis upon issuance of the certified creditsMERC certificate or when the generator notifies the MCAQD that the project has been completed, as applicable: a. Monthly: For each replacement or retrofitted vehicle used to generate certified credits, the permitted generator shall record aA description of all maintenance and repairs, including the resultsrepair activities, current vehicle mileage, date the activity occurred, and any corrective actions performed. b. Monthly: For each replacement or retrofitted vehicle in the captive fleet, maintain monthly records of: (1) Calendar month VMT. (2) To date for the calendar year, the percent of VMT within the applicable nonattainment area. b. The calendar month VMT that occurred within the nonattainment area for each vehicle as recorded by the fleet management system or alternative method for a generator exempt from the fleet management system requirements. The VMT records shall be aggregated by the vehicle source type. c. Quarterly records demonstrating that all fleet management system software and maps have been updated to the most current version. d. For any generator operating under the fleet management exemption in 302.2 b.(2), a record of any VMT outside the nonattainment area. (3) Monthly e. Summary of any other monitoring required by Section§ 503 of this rule. 504.4 Vehicle Retrofit Records: The permitted generator shall maintain a record for each retrofitted vehicle that was used to generate certified creditsMERCs that demonstrates exemption from tampering prohibition of clean alternative fuel conversions by compliance with 40 CFR 85, Subpart F. This includes the applicable valid certificate of conformity or notification submission to the EPA. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 66 of 125 504.5 Annual Report: Upon issuance of certified credits, and within 60 days after December 31 of each calendar year, the permittedThe generator shall submit an annual report to the Control Officer summarizing the captive fleet’s operation and compliance with § 302.2( b). for the previous calendar year and provide: attest, within 60 days after December 31 of each calendar year. The report shall include the following: a statement attesting that any replaced baselineoriginal vehicle is not a part of any other captive fleet owned or operated by the permitted generator in Maricopa County within 200 miles of the nonattainment area and how this was verified, the current captive fleet inventory as specified by § 504.2, total annualthe VMT for each vehicleby the fleet of vehicles used to generate certified credits, and percentage of VMT each vehicle usedMERCs within the nonattainment area during the previous calendar year. Additionally, any generator that operates under the fleet management system exemption in Section 302.2 b.(2) must provide a statement attesting that operations continue to generate certified credits accruedoccur entirely within the nonattainment area per the documentation provided in the applicable nonattainment area that calendar year.Section 302.2 b.(2). 505 COMPLIANCE DEMONSTRATION: Within 30 days of the end of each month, the generator shall: 505.1 Record the amount of VMT within the nonattainment area for each replacement or retrofitted vehicle during the preceding month and record the VMT sum for all replacement or retrofitted vehicles, aggregated by vehicle source type. 505.2 Calculate and record the 12-month rolling total of VMT within the nonattainment area. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 67 of 125 Rule 205 APPENDIX A CALCULATIONS FOR DETERMINING EMISSION REDUCTIONS FROM EACH VEHICLE REPLACEMENT OR RETROFIT PROJECTS A. Baseline Emissions = Annual Utilization(g/year) = HVMT (miles/year) × Baseline Pollutant Emission Factor (g/mile) 1. Where g is grams of pollutant emitted. 2. Annual Utilization is the aggregate number of annual average miles (using historical data for the two-year period selected according to the definition of baseline emissions in this rule) of actual vehicle utilization within the applicable nonattainment areaWhere HVMT as defined in § 209. 3. Where the Baseline Pollutant Emissions Factor is determined using the baseline vehicle fuel type, baseline vehicle engine modyear, and the on-road vehicle emissions factors, in g/mile, inis determined by running the latest applicable version of the United States Environmental Protection Agency’s (EPA) Motor Vehicle Emission Simulator (MOVES) software. Baseline. The data points needed to run the MOVES model includes, but is not limited to, the following: (a) Original vehicle fuel type, (b) Original vehicle engine model year, (c) Aggregated HVMT per vehicle source type, and (d) The vehicle type of the fleet vehicles. 4. Based on this input, the MOVES model will output the total emissions from the baseline fleet based on an original vehicle engine model year corresponds to the calendar year in which the emission reductions are generated by replacing or retrofitting the baseline vehicle. The above calculations yield (g/year.). To obtain tons/yr, the regulatory quantity, multiply by 1.1 x 10-6. To determine a g/mile emission factor, this emission total shall be divided by the input HVMT per vehicle type (miles/year). B. Post Project Emissions = Annual Utilization(g/year) = HVMT (miles/year) × Post- Project Pollutant Emission Factor (g/mile) 1. Where g is grams of pollutant. 2. Annual Utilization isWhere HVMT as defined in § 209. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 68 of 125 3. Where the value from A.2.Post Project Pollutant Emissions Factor, in g/mile, is determined using the replacementby running the latest version of MOVES. The data points needed to run the MOVES model includes, but is not limited to, the following, as applicable: (a) Replacement or retrofit vehicle fuel type, replacement (b) Replacement or retrofit vehicle engine model year, and the on-road (c) Aggregated HVMT per vehicle emissions factors, in g/mile, in the latest applicable version of type, and (d) The vehicle type of the EPA’s MOVES software. fleet vehicles. For a retrofitted vehicle, the vehicle engine model year corresponds to the year the emission reductions are generated by retrofitting the baseline vehicle. For a replacement vehicle, the replacement vehicle engine model year corresponds to the model year of the replacement vehicle.original vehicle. For a replacement vehicle, the replacement vehicle engine model year corresponds to the model year of the replacement vehicle. 4. The above calculations yield Based on this input, the MOVES model will output the total emissions from the replacement or retrofitted fleet based on a vehicle engine model year (g/year.). To obtain tons/yr, the regulatory quantity, multiply by 1.1 x 10-6. To determine a g/mile emission factor, this emission total shall be divided by the input HVMT per vehicle type (miles/year). C. The amount of eligible emission reduction credits for each vehicle is determinedcalculated by subtracting Post Project Emissions from Baseline Emissions. D. High Pollution Area Incentive: The permitted generator may be eligible to use an earlier baseline vehicle engine model year to determine the amount of eligible emission reduction credits determined in Section C of this Appendix if the permitted generator can demonstrate the annual utilization of the vehicle occurs at least 75% of VMT within areas of high pollution as identified through EPA’s EJScreen (Environmental Justice Screening and Mapping Tool) Environmental Justice Indexes. An area of high pollution shall be considered any area in the 90th national percentile or greater for the credited pollutant or applicable precursors. To be eligible, a gasoline baseline vehicle engine must be no more than 7 years older than the replaced or retrofitted vehicle engine or a diesel baseline vehicle engine must be no more than 11 years older than the replaced or retrofitted vehicle engine. Once determined to be eligible, vehicles may use a baseline vehicle engine model year that corresponds to the model year of the baseline vehicle. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 69 of 125 D. The qualifying emission reduction emission factor for each vehicle type and engine model year in the fleet is calculated by subtracting the Post Project Pollutant Emissions Factor from the Baseline Pollutant Emissions Factor, grams/mile. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 70 of 125 MARICOPA COUNTY AIR POLLUTION CONTROL REGULATIONS REGULATION II – PERMITS AND FEES RULE 205 (EMISSION OFFSETS GENERATED BY VOLUNTARY MOBILE SOURCE EMISSION REDUCTIONS) INDEX SECTION 100 – GENERAL 101 PURPOSE 102 APPLICABILITY SECTION 200 – DEFINITIONS 201 BASE YEAR EMISSION INVENTORY 202 BASELINE EMISSIONS 203 CAPTIVE FLEET 204 CREDIT USER 205 EMISSION REDUCTION CREDIT (ERC) 206 ENFORCEABLE 207 FLEET MANAGEMENT SYSTEM 208 GENERATOR 209 HISTORIC VEHICLE MILES TRAVELED (HVMT) 210 LOAD SHIFTING 211 MERC CERTIFICATE 212 MOBILE SOURCE EMISSION REDUCTION CREDIT (MERC) 213 MOVES 214 NONATTAINMENT AREA 215 OFFSETS Clean version without the strikethrough/underline Return to list of attachments Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 71 of 125 216 ORIGINAL VEHICLE 217 PERMANENT 218 QUALIFYING EMISSIONS 219 QUANTIFIABLE 220 REAL 221 REPLACEMENT OR REPLACED VEHICLE 222 RETROFIT OR RETROFITTED VEHICLE 223 SURPLUS 224 VEHICLE SOURCE TYPE SECTION 300 – STANDARDS 301 CERTIFICATION OF QUALIFIED EMISSION REDUCTIONS 302 MERC GENERATION 303 USE OF THE MERC CERTIFICATES SECTION 400 – ADMINISTRATIVE REQUIREMENTS 401 OFFSET INTEGRITY RESPONSIBILITIES 402 ENFORCEMENT AUTHORITY SECTION 500 – MONITORING AND RECORDS 501 RECORDKEEPING AND RECORDS RETENTION 502 INSPECTIONS 503 MERC GENERATION MONITORING 504 MERC GENERATION RECORDS 505 COMPLIANCE DEMONSTRATION APPENDIX TO RULE 205 APPENDIX A – CALCULATIONS FOR DETERMINING EMISSION REDUCTIONS FROM VEHICLE REPLACEMENT OR RETROFIT PROJECTS Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 72 of 125 Adopted 04/26/2023; Revised MM/DD/YYYY MARICOPA COUNTY AIR POLLUTION CONTROL REGULATIONS REGULATION II – PERMITS AND FEES RULE 205 EMISSION OFFSETS GENERATED BY VOLUNTARY MOBILE SOURCE EMISSION REDUCTIONS SECTION 100 – GENERAL 101 PURPOSE: To facilitate the creation and trading of mobile source emission reduction credits (MERCs) for use as offsets by stationary sources under Rule 240 (Federal Major New Source Review (NSR)) of these rules by providing a process for: 101.1 Generating MERCs from qualifying NOx or VOC emissions reductions achieved by generators. 101.2 Certifying qualifying emission reductions as meeting offset requirements prior to issuance of a MERC certificate. 101.3 Issuance of MERC certificates, including the requirements for MERC generators and MERC users. 102 APPLICABILITY: The provisions of this rule shall apply to: 102.1 The owner or operator of a captive fleet of vehicles who holds or intends to obtain a Maricopa County Air Quality Department (MCAQD) stationary source permit (generator permit) and has achieved or will achieve reductions in qualifying emissions in compliance with this rule. 102.2 The owner or operator of any new major stationary source or major modification to an existing major stationary source that intends to use MERCs as offsets to obtain or revise a MCAQD stationary source permit (credit user permit). SECTION 200 – DEFINITIONS: For the purpose of this rule, the following definitions shall apply in addition to definitions found in Rule 100 (General Provisions and Definitions) and Rule 203 (Emission Reduction Credit (ERC) General Requirements) of the Maricopa County Air Pollution Control Regulations (MCAPCR). In the event of any inconsistency between any of the Maricopa County Air Pollution Control Regulations, the definitions in this rule take precedence. 201 BASE YEAR EMISSION INVENTORY: The emission inventory used for a specific nonattainment national ambient air quality standard (NAAQS) that is used for required attainment plan demonstrations and transportation conformity determinations. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 73 of 125 202 BASELINE EMISSIONS: The emissions an original vehicle has actually emitted, as determined in Appendix A, § A. 203 CAPTIVE FLEET: A fleet of vehicles where all the vehicles in the fleet are identifiable, the locations where they are being operated can be tracked and recorded using a fleet management system, such as a global positioning system (GPS), their base of operation is in a nonattainment area, and which can serve as a permanent source of emission reductions when a vehicle is replaced or retrofitted. The captive fleet can only include on-road vehicles. 204 CREDIT USER: The applicant for a stationary source permit or permit revision (credit user permit) that intends to use MERCs as offsets for compliance with federal New Source Review requirements pursuant to Rule 240 of these rules. 205 EMISSION REDUCTION CREDIT (ERC): A reduction in qualifying emissions, expressed in tons per year as rounded down to the nearest one tenth (1/10) of a ton. MCAQD issues ERCs for mobile sources as MERCs. 206 ENFORCEABLE: Specific measures for assessing compliance with an emissions limitation, control, or other requirement established in a permit or in this rule in a manner that allows compliance to be readily determined by, but not limited to, an inspection of records and reports. 207 FLEET MANAGEMENT SYSTEM: A system consisting of location tracking equipment and associated software. The system is used to track vehicle miles travelled (VMT) for fleet vehicles and is capable of distinguishing travel inside and outside the nonattainment area. 208 GENERATOR: The owner or operator of a captive fleet of vehicles that has obtained, or intends to obtain, a generator permit that has made, or proposes to make, reductions in qualifying emissions. 209 HISTORIC VEHICLE MILES TRAVELED (HVMT): The annual average VMT from the project’s original vehicles that make up the captive fleet. The annual average VMT shall be based on the annual actual VMT that occurred within the Phoenix-Mesa ozone nonattainment area, from the two preceding calendars years, or two calendar years more representative of normal operations within the 5-year period immediately before the reduction in qualifying emissions occurs. 210 LOAD SHIFTING: Shifting of activity, measured in VMT, of a replaced or retrofitted vehicle for which a MERC certificate has been issued to a higher emitting vehicle. 211 MERC CERTIFICATE: A document that certifies the issuance of MERCs by MCAQD in accordance with this rule, and includes the information specified in 301.3 b.(2). 212 MOBILE SOURCE EMISSION REDUCTION CREDIT (MERC): An ERC generated from captive fleet vehicles. MERCs have no property rights associated with them. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 74 of 125 213 MOVES: The latest version of the United States Environmental Protection Agency’s (EPA) Motor Vehicle Emission Simulator (MOVES) software. 214 NONATTAINMENT AREA: The Phoenix-Mesa ozone nonattainment area as defined in 40 CFR Part 81.303 for any ozone NAAQS. 215 OFFSETS: Reductions in actual emissions required under Rule 240 (Federal Major New Source Review (NSR)) of these rules. 216 ORIGINAL VEHICLE: A captive fleet vehicle that has been, or will be, replaced or retrofitted, to generate qualifying emission reductions. 217 PERMANENT: A reduction in qualifying emissions that are enduring for the remaining life of the corresponding emissions increase. For the purposes of this rule, an actual reduction in qualifying emissions that endure for at least 20 years after the MERC certificate is issued. 218 QUALIFYING EMISSIONS: NOx or VOC emissions which are included in the current ozone attainment plan base year emission inventory or any periodic update to such emission inventory, from any on road vehicle when emitted within the nonattainment area. 219 QUANTIFIABLE: With respect to emissions, including the emissions involved in emission trades, capable of being measured or otherwise determined in terms of quantity and addressed in terms of character. For the purposes of this rule, quantification shall be based on MOVES output emission factors for the baseline emissions, the replacement or retrofit vehicle emissions, and the VMT from the original vehicle. 220 REAL: A reduction in actual emissions previously released into the air resulting from a physical change or change to the method of operation by a generator. 221 REPLACEMENT OR REPLACED VEHICLE: A vehicle that has, or will replace, an original vehicle, used to generate qualified emission reductions, that is certified to the applicable federal emission standard. 222 RETROFIT OR RETROFITTED VEHICLE: An original vehicle that has, or will have, an alteration, that allows the vehicle to operate on a fuel or power source different from the fuel or power source for which the vehicle was originally certified; and that is designed, constructed, and applied in compliance with the applicable requirements in 40 CFR 85 and 86. 223 SURPLUS: A reduction in qualifying emissions below the emission limitations and standards used to comply with any otherwise federally applicable requirements, including a required attainment plan, provided that the reduction is not relied upon to meet any requirements in the State Implementation Plan (SIP). 224 VEHICLE SOURCE TYPE: The specific type of vehicle, as listed in the most recent MOVES technical guidance document, including but not limited to: passenger cars and Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 75 of 125 trucks, light commercial trucks, transit buses, other buses, refuse trucks, single unit short- and long-haul trucks, and combination short- and long-haul trucks. SECTION 300 – STANDARDS 301 CERTIFICATION OF QUALIFIED EMISSION REDUCTIONS: 301.1 MERC Application: a. An application to obtain MERCs shall be submitted to the Control Officer on the form prescribed by the MCAQD and shall include: (1) Information on the identity, ownership, and location of the generator; (2) An inventory of the captive fleet, including all information specified in § 504.2, for which a replaced or retrofitted vehicle resulted, or will result, in reductions in qualifying emissions; (3) A description of the vehicle replacements or retrofits that have resulted, or will result, in surplus reductions in qualifying emissions, as well as a description of how the reductions in qualifying emissions will be permanent; (4) Information on the methodology for quantifying the surplus reductions in qualifying emissions for each pollutant subject to the application, including emissions calculations, documentation of each original vehicle’s historic vehicle miles traveled, and how these rates were determined; (5) Information on the proper removal or disposal of original vehicles if the reductions in qualifying emissions were accomplished, or will be accomplished, through vehicle replacement; (6) Information on the retrofit conversion process used, or to be used, if the reductions in qualifying emissions will be accomplished through vehicle retrofit; (7) Other information or records necessary to verify that the reductions in qualifying emissions qualify as permanent, quantifiable, surplus, federally enforceable, and real; (8) The actual date or anticipated date the reductions in qualifying emissions, occurred, or will occur, as applicable; and (9) A signed statement by a responsible official, as defined in Rule 100 (General Provisions and Definitions) of these rules, verifying the truthfulness and accuracy of all information provided in the application. 301.2 Action on Application: Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 76 of 125 a. The Control Officer shall review the application for MERCs and evaluate whether the proposed qualifying emission reductions will result in real, quantifiable, federally enforceable, permanent, and surplus emission reductions, and determine whether the MERCs meet the requirements of § 302 for generating MERCs. b. If the Control Officer determines the requested credits will result in real, quantifiable, federally enforceable, permanent, and surplus emission reductions, the generator shall submit an application with the Control Officer in accordance with the requirements of Rule 210 (Title V Permit Provisions) or Rule 220 (Non-Title V Permit Provisions) of these rules seeking either a permit revision or new permit to impose conditions to make the reductions in qualifying emissions permanent and enforceable. 301.3 Generator Permit and MERC Certificate: The Control Officer, upon completion of evaluation of the applications under § 301.2, shall perform the following: a. Provide public participation on the Control Officer’s proposed determination to issue MERCs, and a generator permit or permit revision, per the provisions in § 407 of Rule 220 of these rules. This requirement applies to all proposed actions to issue MERCs according to this rule. The proposed determination shall include the proposed generator permit or permit revision, and the Control Officer’s underlying analysis for proposing to certify the MERCs. b. Upon completion of § 301.3 a., if the Control Officer determines the requested credits meet the requirements of § 301.2 a. and should be certified, then the Control Officer shall: (1) Issue either a generator permit or permit revision that incorporates necessary requirements to make the reductions in qualifying emissions permanent and federally enforceable. The generator permit or permit revision shall include the following: (a) The quantity of VMT used to determine the number of MERCs issued; (b) The qualifying emission reduction emission factor for each vehicle type and engine model year in the fleet in grams/mile, as calculated pursuant to Appendix A, § D; and (c) The date by which the qualifying emission reductions are required to be implemented. (2) Issue a MERC certificate for the total tonnage of MERCs, as rounded down to the nearest one tenth (1/10) of a ton, per year of reduction. The MERC certificate shall include the following information: MERC certificate number, date of issuance, name and address of the generator, description of activity that resulted in the qualified emission reductions, and the number of MERCs issued. The MERC certificate shall specify that the Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 77 of 125 credits were certified under this rule, and whether the reductions in qualifying emissions have been implemented or the date by which the reductions are required to be implemented. In addition, the certificate shall include the following: (a) The quantity of VMT used to determine the number of MERCs issued; (b) The qualifying emission reduction emission factor for each vehicle type and engine model year in the fleet in grams/mile, as calculated pursuant to Appendix A, § D; (c) A statement that the new stationary source relying on the emissions offsets from a MERC may not commence operation until the emissions reductions corresponding to that MERC have actually occurred; and (d) A statement that the MERC does not provide any property rights. c. If the Control Officer determines that none of the requested MERCs should be certified, then the applicant will be notified, and no credits will be issued and neither a generator permit, nor permit revision, will be issued. 301.4 Registration of MERCs in the Arizona Emissions Bank: A MERC Certificate (Certified credits) may be registered in the Arizona Emissions Bank but registration is not required. See Rule 203 (Emission Reduction Credit (ERC) General Requirements) of these rules for procedures regarding registration of MERCs in the Arizona Emissions Bank. 302 MERC GENERATION: A generator that plans to replace or retrofit all or part of their captive fleet to generate qualifying emissions reductions: 302.1 May apply for issuance of MERCs by meeting the following requirements: a. Location: Demonstrate that the captive fleet of vehicles used to generate MERCs are based and operated within the nonattainment area. MERCs may only be granted for those reductions generated while operating in the nonattainment area. An original vehicle’s operation inside the nonattainment area must be quantifiable. b. Quantification of Baseline Emissions: The generator shall quantify baseline emissions for each original vehicle that will be replaced or retrofitted following the calculation methodology in Appendix A of this rule. c. Quantification of Emission Reductions: (1) The generator shall quantify the post project emissions for each original vehicle using the calculation methodology specified in Appendix A of this rule. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 78 of 125 (2) Calculations shall only include surplus reductions and shall not include emission reductions created or used under any other emissions trading program, emission reductions used to satisfy the State Implementation Plan including transportation conformity requirements, or any emissions reductions pursuant to a federal consent decree, or state and local settlements. d. Alternative Calculation Methodology: A generator may use an alternative calculation methodology to quantify emission reductions upon approval from the Control Officer and the Administrator. All alternative calculation methodologies shall be submitted to the Administrator after completion of the public participation process in § 301.3 a., and shall include any public comments received and the Control Officer’s response to the public comments. The Administrator shall be provided 60 days to review the submittal. Written approval from the Administrator must be obtained prior to using an alternative calculation methodology. 302.2 Shall comply with the following installation, operating, maintenance, monitoring, removal/disposal, replacement, and recordkeeping requirements: a. Operation and Maintenance: The generator shall operate and maintain the replacement and/or retrofitted vehicles in accordance with the manufacturer’s written instructions, or the maintenance schedule provided by the manufacturer’s authorized service provider. b. Fleet Management System: (1) Fleet Management System Installation, Operation, and Maintenance: (a) The generator shall install and maintain a fleet management system capable of tracking and recording the location and VMT of each replaced or retrofitted vehicle for which a MERC certificate is issued. The system must differentiate and record travel within and outside of the nonattainment area; (b) The generator shall operate the fleet management system to monitor and record the monthly VMT within the nonattainment area for each replaced or retrofitted vehicle for which a MERC certificate is issued; and (c) The generator shall update, operate and maintain the fleet management system in accordance with the manufacturer’s written instructions. (2) Fleet Management System Exemption: A generator may be exempt from compliance with the fleet management system requirements of 302.2 b.(1) if captive fleet operations for which a MERC certificate is issued occur entirely within the nonattainment area. The generator must submit Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 79 of 125 to the Control Officer for approval documentation demonstrating the operations occur entirely within the nonattainment area. Such documentation may include, but is not limited to, local regulation or company policy restricting VMT to within the nonattainment area. In addition, the generator must demonstrate how the monthly VMT will be monitored and recorded in absence of a fleet management system. c. Removal/Disposal of Original Vehicles that were Replaced: The generator shall remove or dispose of all original vehicles for which a MERC was issued. Removal shall consist of permanently removing all original vehicles at least 200 miles from the nonattainment area. Disposal shall consist of rendering the original vehicles permanently disabled and disposed of in a manner that complies with all applicable local, state, and federal laws. Original vehicles shall not be relocated to any current ozone nonattainment area, as designated on the date of MERC issuance. The generator shall maintain documentation demonstrating proper removal or disposal of all original vehicles. To demonstrate an original vehicle was properly removed from the nonattainment area, the documentation shall include a bill of sale, vehicle registration, or other transfer documentation demonstrating the removed vehicle complies with the location requirements described above. d. Subsequent Vehicle Replacements: The replacement or retrofitted vehicles that were used to acquire MERCs shall only be subsequently replaced with vehicles certified to the same, or lower, EPA emission standard. This replacement requirement shall continue for 20 years from the issuance date of the MERC certificate. e. Vehicle Retrofit: The generator shall ensure the retrofit vehicle used for generating MERCs satisfies the exemption from tampering prohibition of clean alternative fuel conversions through compliance with 40 CFR 85, Subpart F, and a valid corresponding certificate of conformity or notification submission to the EPA. f. Timing: The generator shall demonstrate that the vehicle replacements or retrofits, and removal/disposal of original vehicles, occurred prior to either: (1) The application for MERCs; or (2) The enforceable date established in the generator permit or permit revision required by § 301.3 b.(1)(c) that specifies the date by which reductions in qualifying emissions must be implemented. g. Monitoring and Recordkeeping: Upon issuance of a generator permit or permit revision under this rule, a generator is responsible for creating and maintaining records from their captive fleet monitoring as required in: (1) Section 501 (Recordkeeping and Records Retention); Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 80 of 125 (2) Section 502 (Inspections); (3) Section 503 (MERC Generation Monitoring); (4) Section 504 (MERC Generation Records); and (5) Section 505 (Compliance Demonstration). 303 USE OF THE MERC CERTIFICATES 303.1 General Use Requirements: See Rule 203 (Emission Reduction Credit (ERC) General Requirements) of these rules for procedures regarding the use of MERCs as offsets to comply with the NSR requirements of Rule 240. 303.2 Review of MERC Integrity: Prior to issuing a credit user permit, the Control Officer shall verify that the MERCs issued in the surrendered MERC certificate remain surplus (as defined in this rule) as of the date of permit issuance, and shall revise the MERC certificate amount if necessary to maintain surplus integrity. Any MERC certificate proposed to be used where the reductions in qualifying emissions were not implemented at the time of MERC application shall only be used if the MERC certificate states that the emission reductions will be implemented on a date prior to the date the new stationary source or modification using the credits plans to commence operation of the new source or modification. 303.3 Credit User Commencement of Operation: The credit user shall not commence operation of their permitted new source or modification until the generator has demonstrated compliance with § 401.1. SECTION 400 – ADMINISTRATIVE REQUIREMENTS 401 OFFSET INTEGRITY RESPONSIBILITIES: 401.1 Generator Implementation Notification: The generator shall provide written notification to the Control Officer and credit user within 48 hours of completing implementation of the qualifying emission reductions for which a MERC certificate was issued under this rule, and provide documentation demonstrating compliance with §§ 302.2 b., 302.2 c., 302.2 e., and 302.2 f.(2), as applicable. 401.2 Generator Monthly VMT Review Requirements a. For each calendar month, the generator shall review the 12-month rolling VMT as calculated in § 505 to determine if the 12-month rolling VMT achieved by the generator equals, or exceeds the quantity of VMT specified in their MERC certificate. (1) If the 12-month rolling VMT achieved by the generator is equal to or greater than the quantity of VMT specified in their MERC certificate, the Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 81 of 125 generator shall record the results pursuant to § 505. No further action is required. (2) If the 12-month rolling VMT achieved by the generator is discovered to be less than the quantity of VMT specified in their MERC certificate, the generator shall: (a) Provide a copy of the data to the Control Officer within 5 business days of the date of discovery showing the total 12-month rolling VMT achieved; and (b) Comply with one of the following: (i) DEMONSTRATION OF CONTINUED COMPLIANCE: The generator shall provide a demonstration to the Control Officer for approval within 30 days of VMT shortfall date of discovery to show that the lower VMT was not a result of load shifting and the integrity of the MERCs continue. If the demonstration is approved by the Control Officer no further action is required. If the demonstration does not receive approval, the generator shall notify the credit user, as described in § 401.2 a.(2)(b)(ii). (ii) CREDIT USER NOTIFICATION: The generator shall notify the credit user of the VMT shortfall within 5 business days of the date of discovery or within 5 business days of receiving a disapproval of the demonstration of compliance from the Control Officer. The credit user shall conduct the VMT shortfall evaluation as described in § 401.3. 401.3 Credit User VMT Shortfall Evaluation a. If the credit user is notified by a generator, pursuant to § 401.2 a.(2)(b)(ii), that their 12-month rolling VMT is less than the quantity of VMT specified in the corresponding MERC certificate relied upon for NSR permit issuance, then the credit user shall satisfy the requirements of § 401.3 b. b. Conduct the following calculations and analysis: (1) Calculate the Emission Reduction Shortfall (ERS) by subtracting the VMT achieved, as reported by the credit generator pursuant to § 401.2 a.(2), from the VMT required in the MERC certificate, and multiplying the difference by the applicable qualifying Emission Reduction Emission Factor (EREF) specified in the MERC certificate. Where: ERS in tons/yr = [(required VMT - achieved VMT) x EREF (in grams/mile)]/907,184.74. (2) If the calculated ERS in 401.3 b.(1) is less than 10% of the total MERCs issued by the Department to the generator under Section 301.3 b.(2), then the credit user or generator shall submit an action plan to the Control Officer for approval within 15 days of notification by the generator Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 82 of 125 describing how the offset emissions shortfall will be remedied no later than 3 calendar months after the calendar month that the VMT shortfall occurred. This may include documentation demonstrating the credit user’s actual emissions for the specific NSR permit issuance that relied on MERCs are still sufficiently offset despite the VMT shortfall. A credit user or generator that is required to submit a plan by this section must fully comply with the plan, which has been submitted but not yet been approved, unless notified otherwise by the Control Officer in writing. (3) If the calculated ERS in 401.3 b.(1) is 10% or higher of the total MERCs issued by the Department to the under Section 301.3 b.(2), or MCAQD does not receive an action plan to comply paragraph (2) of this section, or MCAQD does not approve the action plan submitted pursuant to paragraph (2) of this section, then the credit user shall submit a permit application within 90 days of notification by the Control Officer that provides an equivalent quantity of reductions as the ERS determined under section 401.3 b.(1). This may be accomplished by any combination of the following: (a) Permanently reducing emissions by revising existing permit emission or throughput limits; or (b) Providing valid ERCs or MERCs in a quantity equivalent to the ERS determined under section 401.3 b.(1). (4) A credit user that operates without adequate offsets is in violation of these rules. 402 ENFORCEMENT AUTHORITY: Nothing herein restricts independent enforcement authorities under the Clean Air Act by other parties. SECTION 500 – MONITORING AND RECORDS 501 RECORDKEEPING AND RECORDS RETENTION: The records and data required by this section shall be: 501.1 Kept on site at all times by the generator in a consistent and complete manner, in either electronic or paper format. 501.2 Made available to the Control Officer no later than five business days upon verbal or written request by the Control Officer. 501.3 Unless otherwise specified, maintained for five years after the record is created. 501.4 Maintained without falsification. 501.5 Made available to the Control Officer upon written request by members of the public using the County’s public records request process. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 83 of 125 502 INSPECTIONS: A generator shall provide the Control Officer with access to the premises for the purpose of conducting an inspection to verify compliance with this rule. An inspection may include, but is not limited to, a review of records and reports. 503 MERC GENERATION MONITORING: The generator shall monitor parameters used to quantify MERCs beginning no later than issuance of the MERC certificate or the enforceable date established in the generator permit or permit revision required by § 301.3 b.(1). At a minimum, the generator shall monitor the following for each replaced or retrofitted vehicle used for obtaining a MERC certificate: 503.1 VMT within the nonattainment area as determined by the fleet management system or alternative method for a generator exempt from the fleet management system requirements; 503.2 Any other parameter used to make the MERCs quantifiable, such as idling speed, idling emissions, or fuel use rate. 504 MERC GENERATION RECORDS: A generator shall maintain the following records for each replacement or retrofitted vehicle for which a MERC certificate was issued: 504.1 MERC Documentation: All records submitted with the application, documentation that the original vehicle or original vehicle engine was properly removed and/or destroyed, as required by § 302.2 c., and documentation demonstrating the HVMT for each original vehicle that occurred within the nonattainment area. These records shall be maintained for at least five years after the use of the MERCs to obtain a NSR permit, regardless of any defenses under any federal or state statute of limitations. 504.2 Replaced or Retrofitted Vehicle Inventory Records: A detailed inventory of each replaced or retrofitted vehicle used to generate MERCs shall include all of the following information and shall be reviewed and updated on a monthly basis: a. For each replaced or retrofitted vehicle: (1) The vehicle manufacturer. (2) The model number. (3) The model year. (4) The vehicle source type. (5) Serial number. (6) Fuel type. b. The date each replaced or retrofitted vehicle was: (1) Added to the inventory and began operation. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 84 of 125 (2) Removed from the inventory. c. After the initial project, for each vehicle added to the inventory: (1) Identify the vehicle removed in its place. (2) The generator must document that the replacement vehicle is certified to equivalent or lower standards than the vehicle or engine used to generate MERCs. 504.3 Operational Records: The following operational records shall be maintained on a monthly basis upon issuance of the MERC certificate or when the generator notifies the MCAQD that the project has been completed, as applicable: a. A description of all maintenance and repair activities, current vehicle mileage, date the activity occurred, and any corrective actions performed. b. The calendar month VMT that occurred within the nonattainment area for each vehicle as recorded by the fleet management system or alternative method for a generator exempt from the fleet management system requirements. The VMT records shall be aggregated by the vehicle source type. c. Quarterly records demonstrating that all fleet management system software and maps have been updated to the most current version. d. For any generator operating under the fleet management exemption in 302.2 b.(2), a record of any VMT outside the nonattainment area. e. Summary of any other monitoring required by § 503 of this rule. 504.4 Vehicle Retrofit Records: The generator shall maintain a record for each retrofitted vehicle that was used to generate MERCs that demonstrates exemption from tampering prohibition of clean alternative fuel conversions by compliance with 40 CFR 85, Subpart F. This includes the applicable valid certificate of conformity or notification submission to the EPA. 504.5 Annual Report: The generator shall submit an annual report to the Control Officer summarizing the captive fleet’s operation and compliance with § 302.2 b. for the previous calendar year, within 60 days after December 31 of each calendar year. The report shall include the following: a statement attesting that any replaced original vehicle is not a part of any other captive fleet owned or operated by the generator within 200 miles of the nonattainment area and how this was verified, the current captive fleet inventory as specified by § 504.2, the VMT by the fleet of vehicles used to generate MERCs within the nonattainment area during the previous calendar year. Additionally, any generator that operates under the fleet management system exemption in Section 302.2 b.(2) must provide a statement attesting that operations continue to occur entirely within the nonattainment area per the documentation provided in Section 302.2 b.(2). Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 85 of 125 505 COMPLIANCE DEMONSTRATION: Within 30 days of the end of each month, the generator shall: 505.1 Record the amount of VMT within the nonattainment area for each replacement or retrofitted vehicle during the preceding month and record the VMT sum for all replacement or retrofitted vehicles, aggregated by vehicle source type. 505.2 Calculate and record the 12-month rolling total of VMT within the nonattainment area. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 86 of 125 Rule 205 APPENDIX A CALCULATIONS FOR DETERMINING EMISSION REDUCTIONS FROM VEHICLE REPLACEMENT OR RETROFIT PROJECTS A. Baseline Emissions (g/year) = HVMT (miles/year) × Baseline Pollutant Emission Factor (g/mile) 1. Where g is grams of pollutant emitted. 2. Where HVMT as defined in § 209. 3. Where the Baseline Pollutant Emissions Factor, in g/mile, is determined by running the latest version of MOVES. The data points needed to run the MOVES model includes, but is not limited to, the following: (a) Original vehicle fuel type, (b) Original vehicle engine model year, (c) Aggregated HVMT per vehicle source type, and (d) The vehicle type of the fleet vehicles. 4. Based on this input, the MOVES model will output the total emissions from the baseline fleet based on an original vehicle engine model year (g/year). To obtain tons/yr, the regulatory quantity, multiply by 1.1 x 10-6. To determine a g/mile emission factor, this emission total shall be divided by the input HVMT per vehicle type (miles/year). B. Post Project Emissions (g/year) = HVMT (miles/year) × Post-Project Pollutant Emission Factor (g/mile) 1. Where g is grams of pollutant. 2. Where HVMT as defined in § 209. 3. Where the Post Project Pollutant Emissions Factor, in g/mile, is determined by running the latest version of MOVES. The data points needed to run the MOVES model includes, but is not limited to, the following, as applicable: (a) Replacement or retrofit vehicle fuel type, (b) Replacement or retrofit vehicle engine model year, (c) Aggregated HVMT per vehicle type, and Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 87 of 125 (d) The vehicle type of the fleet vehicles. For a retrofitted vehicle, the vehicle engine model year corresponds to the year the emission reductions are generated by retrofitting the original vehicle. For a replacement vehicle, the replacement vehicle engine model year corresponds to the model year of the replacement vehicle. 4. Based on this input, the MOVES model will output the total emissions from the replacement or retrofitted fleet based on a vehicle engine model year (g/year). To obtain tons/yr, the regulatory quantity, multiply by 1.1 x 10-6. To determine a g/mile emission factor, this emission total shall be divided by the input HVMT per vehicle type (miles/year). C. The amount of eligible emission reduction credits for each vehicle is calculated by subtracting Post Project Emissions from Baseline Emissions. D. The qualifying emission reduction emission factor for each vehicle type and engine model year in the fleet is calculated by subtracting the Post Project Pollutant Emissions Factor from the Baseline Pollutant Emissions Factor, grams/mile. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 88 of 125 1 MARICOPA COUNTY BOARD OF HEALTH MEETING MINUTES Monday, January 24, 2022, at 3:00 PM Virtual Meeting due to COVID-19 and social distancing guidelines President MacMillan called the meeting to order at 3:02 p.m. ROLL CALL: Members Present: Chairman Bill Gates Debra Baldauff Don Cassano Paul Stander Paula Banahan Robert MacMillan Scott Celley Members Absent: Kristen Acton Ex-Officio: Marcy Flanagan 1. CALL TO ORDER President MacMillan A. Roll Call B. Call to the Public President MacMillan called the meeting to order at 3:02pm, addressing the public advising all how to use the chat box to comment or add any questions for the agenda items. There were no requests known to speak at this time; all were informed that they would have the opportunity to type questions using the chat box, which will be acknowledged during and or after the meeting accordingly. DISCUSSION/ACTION ITEMS: 2. Approval of Minutes President MacMillan President MacMillan asked for a motion to approve the minutes from the Board of Health (BOH) meeting held on October 25, 2021. A motion was made by Mr. Cassano to approve the BOH minutes as presented. Mr. Celley seconded the motion. The motion passed unanimously. 3. Public Health Update – FY 2022 Quarter Budget Status Report Scot Pitcairn Mr. Pitcairn provided an update for the Public Health Fiscal Year 2022 Budget Status Report. A memo was provided outlining the updates for the below listed funds. • Fund 100 – General Fund Mr. Pitcairn noted that the memo for the fund 100 should indicate that the department received positions for FY22 not FY23. There were no questions pertaining to the general fund 100. Return to list of attachments Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 89 of 125 2 • Fund 265 –Public Health Fee Fund The forecast show that the department was just coming in under budget and the department will keep an eye on the fund over the next couple of months before submitting an adjustment request. The Refugee fund is a state expense, not federal. When Refugees enter the country, they are placed on an emergency AHCCCS, which is how individuals are provided coverage as far as the Federal government because that’s reimbursed. Once individuals are put on emergency AHCCCS, Public Health bills this out using the AHCCCS Program through the insurance providers. If there is a program and AHCCCS does not pay, then yes, the federal government does reimburse, after the denial of the claim. Reimbursements were previously from the Refugee Medical Assistance Program, (the Federal Program), and then it was pushed over to AHCCCS in certain cases, now it’s almost 100 percent from the AHCCCS reimbursement. There were no additional questions pertaining to fund 265. • Fund 296 – State & Local Recovery Funds/American Rescue Plan Act (ARPA) A share of fund 296 supports the finance and rent infrastructure needs of the rest of the COVID related grants. Other major “buckets” of funding include COVID isolation housing (hotel), technology needs for Epidemiology and Public Health, PPE supplies, and an additional regional public health facility in Goodyear, recently purchased. There were no questions pertaining to fund 296. • Fund 532 - Grant Fund The COVID-related grants are direct federal, or federal fundings passed through the state, and fall into three categories: 1) Epidemiology and Disease Investigations; 2) Immunization; and 3) Health Equity and Disparities. Spending for many of the non-COVID grants is still recovering from the effects of the pandemic. An example was provided such as the Dental Sealant grant. The biggest challenge filling positions, recruitment has still provided applicants for most of the positions, however it’s possible that the number of applicants and qualified applicants are affecting recruitment. The labor rate for personnel has increased throughout the nation and one concern is that a lot of the standard operational grants are flat-funded. Human Resources (HR) has done several market studies increasing compensation to help with recruitment. As increases come in, they are struggling to exercise those compensation increases because it doesn’t fit within their funding. This is not a good thing or a bad thing, it’s simply something that impacts recruiting and grants will need to be addressed in order to have their service levels maintained at the same rate, they’re going to have to increase their compensation and reimbursement rates to Public Health to coincide with the increases. The department is struggling with the recruiting pool, as well as the entire nation. The department has loads of funding coming, and yes, some of the grants over the years have been level funded and obviously, cost salary, cost have increased over time, so that becomes quite a squeeze on some of the grants. During the end of a three or five-year cycle, the grant contract may be adjusted for pay increases. A few have already received some adjustment with compensation and reimbursement rates, mid contract. The department is expecting changes at the end of the contracts for next year. There were no additional questions pertaining to fund 532. (refer to memo and report summary attached to meeting agenda) Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 90 of 125 3 4. Environmental Services Department FY 2022 Quarter Budget Status Report Ryan Hautzinger Mr. Hautzinger provided the Board with an update of the Environmental Services Department Fiscal Year 2022 Budget Status Report. A memo was provided outlining the updates for the below listed funds. Environmental Services has relocated to the main county building located at 301 West Jefferson on the 5th floor. • Fund 100 - County General Fund Mr. Hautzinger reported on Fund 100 as outlined in the Environmental Departments report. There were no questions pertaining to fund 100. • Fund 290 – Environmental Tire Fund Fund 290 FY 22 trend has reversed through the second quarter of FY 22 which was due to higher second quarter revenues distributed from the State of Arizona through the Tire disposal tax. The memo provided outlines the updates for the tire funds. The theory is that the state distributed the revenue as a result of higher disbursing because of a lag. Although not confirmed, the department is trying to get more communication with the state to see these trends out. The Quarter 3 report will hopefully provide more information. There were no legislation changes. There were no additional questions pertaining to fund 290. • Fund 506 – Environmental Fee Fund As predicted in the quarter 1 report, Fund 506 was revenue was much stronger these past three months in the 2nd quarter and created a positive variance in the fund. There were no additional questions pertaining to fund 506. (refer to memo and report summary attached to meeting agenda) A. Air Quality Department Greg Verkamp Kimberly Butler Mr. Verkamp directed the board to the department’s memo and agenda action item requesting to approve the initiation of regulatory change for rule 205 - AQ-2021-004 titled “Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits”, which was previously distributed to the board for their review. The rule requires action to be recorded by the members of the board. Approve initiation of regulatory change for the following rule 205 – AQ-2021-004: AQ-2021-004 Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) Maricopa County is currently designated as a nonattainment area for both the 2008 and the 2015 ozone National Ambient Air Quality Standard. In ozone nonattainment areas, the Clean Air Act requires owners and operators proposing to construct a new major source or make a major modification to obtain emission offsets before the project may commence. Currently, insufficient emission reduction credits exist in the Arizona Emissions Bank for large businesses to use as emission offsets. The purpose of this rulemaking is to create a new economic development rule which will provide a mechanism for the creation of more emission reduction credits, specifically mobile source emission reduction credits (MERCs), for use as emission offsets. The purpose of the rulemaking is to create a new economic development rule, which will provide a mechanism for the creation of more emission reduction credits, specifically, what are called mobile source emission reduction credits, or MERCs as people often refer to them, for use as emission offsets. On January 10th a stakeholder workshop was held to discuss the proposed rule. The department is in the process of evaluating the comments Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 91 of 125 4 that were received during the workshop. In addition, the department is also in the process of discussing the rule with the EPA to obtain their feedback as they move forward in the rulemaking process. Including the EPA in the process is crucial to ultimately getting approval of rule 205 from the EPA. Air Quality intends to host at least one more workshop after further discussions with the EPA and will eventually return before the board to request a recommendation to the Board of Supervisors. Air quality is requesting for the board of health’s approval to initiate the rulemaking. It was noted that the record retention for emissions date back for a five-year period. In order to calculate the baseline emissions, the two most recent and representative years are what’s considered a normal operating condition and you can go back as far as five years. Using the example of individual plants keeping a 10-year record keeping, the board suggested during times of economic downturn, the five-year record keeping is not the best. Air Quality will evaluate the board’s suggestion and report back to the board on its findings. President Macmillan questioned if there was a mobile source regarding emission credits, or if it was something new? Mr. Verkamp referred to Rule 204, mobile source, like on-site equipment, there wasn’t on-road, it was all off road, like baggage handlers at the airport as an example. Mobile source is new, and the department is looking at on-road vehicles, such as this rule, which is going to focus on fleets of vehicles, captive fleets. A discussion was had pertaining to the city fleets that operate within the non-attainment area or the delivery companies, (UPS, FedEx) that have these fleets of vehicles and decide to modify them to be more efficient vehicles and pollute less, which is the focus of those types of fleet vehicle. A comment was had at the workshop regarding including credit for VOC or PM 2.5 reductions, the department is looking at modifying the rule to allow for credit for other pollutants beyond NOx. The department reviewed two rules and showed there wasn’t a lot or any use of them. A discussion about old fleets not having a GPS was had, and a question about whether a statement like an affidavit from mileage records can legitimize area use being in the ozone non-attainment area, the credits have to be justified as being taken. This issue came up during a workshop, the idea that does every fleet vehicle have to have a GPS installed, the department is in the process of reaching out to that stakeholder to see what they propose as alternatives. But, as far as recordkeeping and the GPS, the mileage, in order for the EPA to review and approve, they have to determine that the MERCs are enforceable. It was also noted that the new vehicles must be used the same way the generator was using the replaced vehicles. The department would need to get it approved locally; however, it won’t be usable until the EPA approves it. There were no additional comments had. President MacMillan asked if anyone wanted to make a motion to approve initiation of regulatory change for Rule 205 - AQ-2021-004. Mr. Celley made a motion to approve Rule 205 and Mr. Cassano seconded the motion. All were in favor. 5. Fee Waiver Applications Fifteen (15) permit fee waiver approval requests Robert Stratman A. 01-24-22 Fee Waiver Staff Report.pdf B. 01-24-22 Fee Waiver Application Summary Sheet.pdf The department received 15 Permit Fee Waiver applications and staff determined that all met the criteria outlined in the Environmental Health Code. The criteria - an operator of a charitable non-profit establishment, which operates predominantly for the poor distressed or underprivileged that may apply to the Board of Health for the waiver of a permit. A waiver may be granted only if the operator maintains a current 501 (c)3 tax-exempt status and demonstrates that the payment of the said fee will cause a financial hardship. In addition, a waiver of fees associated with the administering and issuance of a food employee certificate in compliance with Arizona revised statute, Article 41-1080, may be granted to a current student enrolled in a K through 12 culinary arts school program or similar curriculum based programs requiring food employee certificates. The sponsoring school district must demonstrate to the board of health that payment of said fees will cause financial hardship. All 15 fee waiver applications reviewed this quarter appear to meet the criteria. The department is asking for the board’s approval of the 15 fee waiver application summary sheet labeled P1-P13 and C1 through C2. The Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 92 of 125 5 department has two different application types that are reviewed. 1) Permit side, and yes, schools who do serve food to students are required to get a permit from the department, 2) Classes K-12 Culinary Arts program, those are not required, if it’s done as a part of classrooms, typically to obtain a permit. However, some of the services they provide help students obtain a Food Handling Certificate, a lot of the programs will prepare students for work. Students working in a food establishment must have a certificate, schools providing the programs, and coordinating with the department to provide the training to then subsequent certificates to meet the criteria. It’s not the students being served; it’s the student in the program who would need to meet the criteria. Any school that can meet the criteria would qualify for the fee waiver, and it’s not that the students they’re serving are the underprivileged or poor; it’s the students that are obtaining the certificates that fall into that category that are receiving the food training certificates. Most schools don’t have a 501(C)3, so it’s not expected that all schools within the county would apply or meet the criteria, and that’s where the fee waiver comments relate to the permits. The fee waiver for the certificates is related to the students in those classes receiving that training. So, there’s a potential differentiation there between who is being served and what the training is for. Therefore, it’s not expected that there would be a considerable increase in fee waivers because not every school in the county would meet the fee waiver criteria. (memo and report summary attached to meeting agenda) President MacMillan asked if there was a motion to approve the 15 fee waiver applications presented as P1 through P13 and C1-C2. A motion was made by Mr. Celley to approve the fee waiver applications labeled as P1 through P13, and C1-C2. The motion was seconded by Mr. Cassano. All were in favor, the motion carried. Discussion Items 6. Public Health Report Marcy Flanagan A. Human Resources B. Communications C. Infrastructure D. Strategic Planning E. Programs F. Disease Update G. Health Status/Community Health Needs Assessment (CHNA) Lilliana Cardenas H. Future Topics Ms. Flanagan provided the board with the COVID-19 case updates for Maricopa County. COVID-19 Update • Maricopa County case count 10,482 as of last week, the county has had over 16,000 cases in just one day • Maricopa County hit over 1 million cases, • Maricopa County related Covid deaths 14,304 (increased with surge of the Omicron cases) • Hospital Positive patients’ cases trends upward, but not as high as last winter • Hospital cases are not as high as last year, possibly because there is a vaccine available now, which has helped, also Omicron isn’t having severe outcomes as previous training, specifically, the Delta variant. The case count usually lags about two weeks behind the county’s case count. The hope is that the hospitalizations level off and start trending down as well. • Hoping that Maricopa County has reached our peak and cases begin to trend downward. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 93 of 125 6 • Rate of transmission per 100,000 residents, benchmark for January 2nd through the 8th was 1775 per 100,000, the following week increased to 2008 per 100,000 which put the county community spread rate twenty times higher, once Omicron took over the case rates exploded. In review of the last few weeks of December, first weeks of January shows that the county was up as high as 36% of test positive cases, which indicates that there is not enough testing in the county. Rapid over the counter test are hard to come by, same day appointments have become difficult for most to get into a provider office for testing. (A more detailed report is attached to the agenda) Children and Schools One in six cases are among children here in Maricopa County. When the Delta variant began in April. And these were our percent of Kobe cases among children less than 18. It really increased, when school went back in session, you saw in August, you see that it's come down a little bit. We know that part of the reason it came down November, December, is they had their fall, and winter breaks happening. So, it has started to go up slightly. However, we're not to where we were in August 2020 when school went back in session, which is a good thing, mainly due to with the vaccine now being available for all school aged children, which happened at the beginning of December. • Children account for 7% of hospitalizations • Newly identified school outbreaks continued to rise • As of 1/19/22 - there were 363 ongoing school outbreaks • The county is now under the 363 cases reported (A more detailed report is attached to the agenda) Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 94 of 125 7 NEW CDC Guidance Up To Date on COVID Vaccines The message to get vaccinated and stay up to date was encouraged. Up to date – means a person has received all recommended COVID-19 vaccines, including any booster dose(s) when eligible. Fully vaccinated – means a person has received their primary series of COVID-19 vaccines. Ms. Flanagan continued to report on new isolation guidance, quarantine: Not Up to date on COVID vaccines, Up to date on COVID vaccines and Quarantine: Exposed & Confirmed COVID as shown below. (Full presentation is attached to the agenda) COVID Vaccine Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 95 of 125 8 New Isolation Guidance Quarantine: Not Up To Date on COVID Vaccines New IsolaƟon Guidance QuaranƟne: Not Up-To-Date on COVID vaccines Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 96 of 125 9 Quarantine: Up To Date on COVID Vaccines Quarantine: Exposed & Confirmed COVID Contact the Public Health office should anyone need additional information or visit the www.maricopa.gov/covid website for more information. QuaranƟne: Up-To-Date on COVID vaccines QuaranƟne: Exposed & Confirmed COVID Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 97 of 125 10 New Federal Initiatives • At-home test kits o The White House started the “At-home test kit program” with the goal of providing free rapid at-home test kits to every household in America o Individuals can go to: www.COVIDTests.gov to order their kits o Test kits usually ship 7-12 days after ordering • Free N95 masks for public o The Biden Administration is making 400 million N95 masks available to Americans for free. o Masks will come from the Strategic National Stockpile & will be available for the public to pick up at tens of thousands of local pharmacies and community health center sites across the country. o The Administration is starting to ship masks at the end of this week, and masks will start to be available at pharmacies and community health centers late next week. The program will be fully up and running by early February. o This is the largest deployment of personal protective equipment in U.S. history. • Important message (Masks) o Any mask is better than no mask. o CDC continues to recommend that you wear the most protective mask you can that fits well and that you will wear consistently. o Masks and respirators are effective at reducing transmission when worn consistently and correctly. o Some masks and respirators offer higher levels of protection than others, and some may be harder to tolerate or wear consistently than others. It is most important to wear a well-fitted mask or respirator correctly that is comfortable for you and that provides good protection. o While all masks and respirators provide some level of protection, properly fitted respirators provide the highest level of protection. Ms. Flanagan responded to questions at the conclusion of the presentation. Well-fiƩed respirators provide the best protecƟon. Wear the highest quality respirator or mask that has the correct fit, protecƟon, and comfort for you. High quality respirators are important if you are older, immunocompromised, not up-to-date on your COVID-19 vaccinaƟons, or in higher risk situaƟons. Mask RecommendaƟons Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 98 of 125 11 • What were the relative percentages among patients hospitalized? o The county is seeing that upwards of 80, and more times, not locally. What they've heard from the CEOs or CMOS is that they're seeing 90% of the hospitalizations or more are unvaccinated individuals. The vast majority of hospitalized cases are in those who are unvaccinated. • What were the most up to date numbers on the percentages of those vaccinated in Maricopa County using those definitions presented? • What the county is working on now is trying to extrapolate that data from the AHCCCS System, which is the statewide system that tracks vaccines, unfortunately, what happened early on is the weight tracking was done for covert 19 vaccine. It wasn't really categorized in these series and booster and knowing what means up to date for some individuals as opposed to others for instance; if someone is immunocompromised, they have recommended more doses for those individuals. So, at this point, public health hasn't been able to separate the data to show the up to date versus fully vaccinated. The numbers of individuals who are fully vaccinated and Maricopa County were right around that, 55%, it’s unknown if that number is based on fully vaccinated. Public Health doesn't know how much of that 52 or 55% is up to date, meaning that they have their boosters as well. The public health team is really trying to work with the ADA just to make sure that they can have accurate data on that, but unfortunately there is no way to currently with the way numbers are pulled, the data and information from the Arizona DHS to differentiate between the two, but the department is working on that. • What is the quarantine within congregate settings, are the recommendations for jails and group homes? o The information is different, the presentation relates to the general public. Long-term care facilities and assisted living retirement communities, share congregate housing. There are other considerations, and that's all available on the county’s website as well as the CDC website, especially in those situations, because it's typically considered an outbreak situation when cases happen in those settings. It's not just an exposure, like a community exposure or family exposure. You're typically having an outbreak, and so those are treated differently. • The recommendation is for everyone to be tested when a family member in close contact tests positive. • Maricopa county has seen more infection in children than early on in the pandemic when another household member was positive • The bigger contributing factor is that there is more spread happening in children • Omicron has affected more children, then other variants at the beginning of COVID Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 99 of 125 12 Community Health Needs Assessment (CHNA) Lily Cardenas Public health conducts a community health needs assessment (CHNA) every 3-5 years. Maricopa County commonly conducts this report every 3 years. Ms. Cardenas provided the purpose of the CHNA and continue to present the information using the presentation slides attached to the agenda emphasizing how COVID-19 impacted the data. An outline of the presentation reported on consisted of: • Collaboration for Health Improvement • CHNA Partnership Process • COVID-19 Impact Survey • Focus groups and Summary of Participants • Impact on Mental, Physical and Behavioral Health • Primary barriers to accessing healthcare in communities • Impact on Addition/Substance Abuse/ Food Insecurity • Vaccine options and Qualitative Analysis Purpose of CHNA • MAPP: Mobilizing for Action through Planning and Partnership • Comprehensive data collection of a community to identify strengths, needs, and health priorities. • Establishes the priorities for the development of a Community Health Improvement Plan (CHIP). • Required of all tax -exempt hospitals as part of the Patient Protection and Affordable Care Act. • Influences allocation of funds and resources for health improvement • Conducted every 3 years Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 100 of 125 13 During the focus groups conversations provided that there were a lot of concerns surrounding the vaccine. • Long term side effects • Fertility, brushed vaccine development • FDA approval • Vaccine cost There was a lot of confusion in the community, especially some of the harder to reach communities, that they had to pay for the vaccine. Some doctors, offices, clinics, and places that were providing the vaccine, unfortunately, hadn't ironed out all the bugs and billing, and so sometimes people would receive a bill, and then they would tell their friends and their neighbors, how they were charged when it was a mistake. And that's not what was supposed to be happening. There was often some confusion there. The group saw a lot of folks that just didn't perceive themselves to be high risk. At this point, most everyone has heard a story of someone who was surprised they got COVID, and they died, comments usually followed that “they always seem so healthy, we never thought”. Unfortunately, that has been something that has affected so many people, and then when asked about how people were getting information. Doctors and primary care providers still are a strong influence because most people have trust again in their doctors and primary care faith and faith leaders, and community leaders and elders. The results of the community data collection efforts, can be accessed on the website: www.maricopahealthmatters.org CHNA Data and Profiles MCDPH is committed to sharing the results of community data collection efforts to improve public health strategies and support our community partners, visit: www.maricopahealthmatters.org • Current CHNA and CHIP Reports • Past CHNA and CHIP Reports • Regional & City Profiles • Synapse Hospital & Healthcare Partnership • Health Improvement Partnership of Maricopa County (HIPMC) • MySidewalkData Dashboard Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 101 of 125 14 MCDPH created snapshots for each of our five regions as well as county wide. Several cities were included that also were able to collect sufficient data to have their own profile. This is a huge benefit to the city. The data is a rich source of information of the community and also uses to leverage. When they write grants or submit proposals for any type of project, they really can show this. So, the department receives a lot of buy in from the community, organizations, hospitals and municipalities because of this work. Next Steps… Data driven funding & resource allocation. • RFP – Regional Funding to address Health Disparities, focus on priority issues by region up to $12.5 million • RFP – Countywide Funding to address Health Disparities, focused on Access to Healthcare up to $1.5 million • Establish Community Advisory Boards per region to develop and inform Regional Community Health Improvement Plans. MCDPH received 26.5 million dollars, from the Center for Disease Control to address health disparities. The department is in the process of open request for proposals to provide regional funding to address health disparities. Public health is allocating 12.5 million to be distributed within the five regions approximately 2.5 million per region and 1.5 million for county-wide initiatives that address access to health care, the regional ones are health disparities. So those that get funded are going to come together and create these regional community advisory boards to really get more information on the community, and really work with them to develop action plans, and really help public health get back on track. The department expressed being excited that this work is really leading to some educated data, driven decisions, funding and resource allocation ends. Ms. Cardenas referred the board to the flyer distributed to the public. Community members were involved in the pre-conference bids asking various questions. There were almost 140 participants on the call expressing interest in applying for funding. Mental health was identified as a big issue considering that most individuals had changes in their job or employment status. Risk factors like obesity has been a topic of concern during the pandemic. The department has seen some short-term negative impact from obesity and the ability to try to reverse those trends. At the conclusion of the CHNA report, the board expressed their appreciation for all the work that goes into producing the data presented and that it provided a broader view of the community needs. Announcements and Current Events President/ Board Members None Adjournment President MacMillan There being no further business, Mr. Cassano made a motion to adjourn the meeting and Ms. Balduff seconded the motion. The motion passed unanimously. The meeting was adjourned at 5:00 p.m. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 102 of 125 1 MARICOPA COUNTY BOARD OF HEALTH MEETING MINUTES Monday, January 23, 2023, at 3:00 PM In Person & Virtual Meeting President MacMillan called the meeting to order at 3:02 p.m. ROLL CALL: Members Present: Debra Baldauff Don Cassano (via phone) Matthew Farber Paul Stander (via phone) Paula Banahan Robert MacMillan Members Absent: Scott Celley Supervisor Bill Gates Kristen Acton Ex-Officio: Marcy Flanagan 1. CALL TO ORDER President MacMillan A. Roll Call B. Call to the Public Addressing the public, President MacMillan advised all how to use the chat box to comment or add any questions for the agenda items. Ms. Sampler informed all that there were no requests known to speak at this time; all were told that they would have the opportunity to type questions using the chat box, which will be acknowledged during and or after the meeting accordingly. DISCUSSION/ACTION ITEMS: 2. Approval of Minutes President MacMillan President MacMillan asked if there was a motion to approve the minutes from the Board of Health (BOH) meeting held on October 24, 2022. Dr. Farber motioned to approve the BOH minutes as presented and seconded by Mr. Cassano. The motion passed unanimously. 3. Public Health Update Scot Pitcairn 2nd Quarter Update - Fiscal Year 2023 Budget Status Report Mr. Pitcairn provided an update for the Public Health FY23 Quarter 2 Budget Status Report for the funds listed below. The finance memo is attached to the agenda outlining the updates for all funds reported. Return to list of attachments Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 103 of 125 2 • Fund 100 – General Fund • Fund 265 –Public Health Fee Fund • Fund 293 – Justice Reinvestment Fund • Fund 296 – State & Local Recovery Funds/American Rescue Plan Act (ARPA) The board requested additional information for fund 296, Ms. Lee Ann Bohn provided a link to reference COVID-19 American Rescue Plan Act Funds | Maricopa County, AZ. • Fund 297- Opioid Settlement Fund • Fund 532 - Grant Fund The total amount for the new Workforce Infrastructure grant from the CDC is approximately $38 million upfront one-time funding to be used over a five-year period and then $1.7 million annually for each of the next five years. According to Ms. Flanagan, the Infrastructure Grant is the first time that the Federal Government has pledged this amount of funding for public health infrastructure. The purpose is to reinforce the staff that local public health hired during COVID, so when the next pandemic occurs, public health will avoid being behind as was seen nationally. Most of the health departments are trying to catch up so that they are prepared to do contact tracing, case investigation, and other types of work needed. Much of the funding is going to continue employing staff and ensure that public health has a stable minimum infrastructure in the department to respond to emergencies and continue to be an accredited health department to have comprehensive business and finance, grant management kind of department. A lot of the funds are going toward that purpose as well as staffing for additional clinics purchased with the ARPA monies. Those positions are billable activities that occur in the clinic. The CDC advises that the 1.7 million is not only for the five years the health department was rewarded, but the funds will be a part of their permanent budget from the federal government. A discussion was had about obtaining qualified candidates. Should the department present an offer to a candidate for which they decline the offer, the department would need to start the recruitment process over again. This has caused a change in the pay scale midyear. The county approved a 10 percent pay rate, which made a difference. There were no additional questions for any of the funds reported. Environmental Services Sylvie Donaldson 2nd Quarter Update - Fiscal Year 2023 Budget Status Report Ms. Donaldson presented the Board with the Environmental Services FY23 Quarter 2 Budget Status Report for the funds listed below. The finance memo is attached to the agenda outlining the updates for all funds reported. • Fund 100 - County General Fund • Fund 290 – Environmental Tire Fund • Fund 506 – Environmental Fee Fund The department has also seen challenges with its recruitment due to wages; however, the large increase approved by the Board of Supervisors brought some relief to the process. There is a job fair coming up, which the department is hoping will help with recruitment. The board responded that various industries are still facing challenges even with the increase in wages and are not having a lot of success nationally. There were no additional questions for any of the funds reported. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 104 of 125 3 4. Environmental Services Dept. Fee Waiver Applications – Robert Stratman Request for Board of Health approval of twelve (12) fee waiver applicants This quarter, the department reviewed twelve (12) fee waiver applications. Of the applications reviewed, staff determined that all meet the criteria outlined in the Maricopa County Environmental Health Code. As a reminder, only an operator of a charitable nonprofit establishment that operates to provide relief predominantly for the poor, distressed, or underprivileged may apply to the Board of Health for a waiver of a permit fee. A waiver of a permit fee may be granted only to the operator of an establishment that maintains a current 501(c)(3) tax-exempt designation from the Internal Revenue Service and who demonstrates to the Board of Health that payment of said fee will cause financial hardship. In addition, a waiver of fees associated with the administering and issuance of a food employee certificate (in compliance with A.R.S. § 41-1080) may be granted to a current student enrolled in a K-12 culinary arts school program or similar curriculum-based programs requiring food employee certificates. The sponsoring school district must demonstrate to the Board of Health that payment of said fee will cause financial hardship. Again, all fee waiver applications reviewed this quarter appear to meet the criteria. The Board had no questions, Mr. Stratman requested approval of the applications on the Fee Waiver Application Summary Sheet labeled P1 through P9 and C1 through C3 (memo and report summary attached to meeting agenda) President MacMillan asked if there was a motion to approve the 12 fee waiver applications presented as P1 through P9 and C1-C3. A motion was made by Mr. Cassano to approve P1 through P9 and C1-C3 fee waiver applications and seconded by Ms. Baldauff. All were in favor, and the motion carried. 5. Air Quality Department Greg Verkamp Kimberly Butler Mr. Verkamp and Ms. Butler presented AQ-2021-004 Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) to the board, requesting that the board make a recommendation to the Board of Supervisors to approve the creation of Rule 205. Maricopa County is currently designated as a nonattainment area for both the 2008 and the 2015 ozone National Ambient Air Quality Standard. In ozone nonattainment areas, the Clean Air Act requires owners and operators proposing to construct a new major source or make a major modification to obtain emission offsets before the project may commence. Currently, insufficient emission reduction credits exist in the Arizona Emissions Bank for large businesses to use as emission offsets. The purpose of this rulemaking is to create a new economic development rule which will provide a mechanism for the creation of more emission reduction credits, specifically mobile source emission reduction credits (MERCs), for use as emission offsets. In January 2022, the department requested the initiation of this rulemaking, and it was approved by the board. A summary of the regulatory background was provided, adding that stakeholders expressed support for the rulemaking. In December, the department posted a Notice of Proposed Rulemaking on its EROP website for a 30-day period. The department did not receive any comments after the Notice was posted. The department is requesting that the board make a recommendation to the Board of Supervisors for approval of a new economic Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 105 of 125 4 development rule, which is voluntary. Mr. Verkamp emphasized no one is required to comply with rule unless they decide to participate in the MERC program. It was confirmed that there were no comments of opposition to the Rule. President MacMillan asked if there was a recommendation to the Board of Supervisors to approve the creation of AQ-2021-004 Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits). Ms. Banahan made the recommendation, seconded by Dr. Farber. All were in favor of the recommendation to the Board of Supervisors for the creation of AQ 2021-004 Rule 205. Discussion Items 6. Public Health Report Marcy Flanagan A. Human Resources B. Communications C. Infrastructure D. Strategic Planning E. Programs F. Disease Update G. Health Status/Community Health Needs Assessment (CHNA) H. Heat Report I. Future Topic J. Covid Status Update Dr. Rebecca Sunenshine Ms. Flanagan provided the board with Public Health’s internal departmental updates informing all that Dr. Sunenshine was invited to give the board a Covid status update later in the meeting. • New Organizational Departmental Chart was completed end of 2022 • Hired two additional Division Administrators • New Organizational changes are expected to be completed by mid-February The primary goal surrounding the new organizational structure was to get programs and departments that have similar functions or focus on the same populations to be answering to the same Division Administrator. So, there's a lot of shuffling going around within the department and clinical services to house all their functions in the same division. • Business practices will be consolidated and centralized by the mid-Summer or early Fall of 2023 • Achieve more streamlined business operations and services offered to the public Ms. Flanagan shared that she met with all the Arizona Local Health Officers, and Dr. Thresa Cullen, who currently is the Health Officer for Pima County, was identified as the new Health Officer for ADHS. Public Health’s General Fund 100 shows a positive variance (under budget) year-to-date (Epidemiology), being under by $590,906; most of this is due to vacancy savings and reallocations of payroll to the ARPA funding. The department is making great efforts to help spend monies by working closely with ASU, U of A, and the county to fill positions. Maricopa County’s Human Resource Department has also explored the option to telework out of State for those positions that are hard to fill. The county has also offered sign-on bonuses for positions like a nurse. All these things help with the spending of the General Fund monies being under budget, spending almost $600,000 in Epidemiology. An example of State-to-State wages was provided. Ms. Flanagan believes that the Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 106 of 125 5 county is competitive with its wages and incentives; it is known as a national situation. Public Health pay aligns with others. However, the problem is that the pay the department has and the experience required for that pay match an entry-level in those fields. The county is willing to examine this closely. The incentives are being provided. It was also noted that people in the workforce like to move around nowadays as opposed to historically staying in one position. Dr. Sunenshine presented the board with an update on infectious diseases giving an overview of each slide. Global & National COVID-19 update • It’s believed that what’s happening in China will have some global impact. • Reports show that XBB.1.5 has been spreading rapidly • Increased media coverage surrounding the newest variant XBB.1.5 • Public Health expects the Coronavirus to constantly mutate, which is what that type of virus does • XBB.1.5 is rapidly spreading, as shown in Denmark and the UK • People have immunity to the last variant, XBB.1.5 is very infectious than the last variant; outcompete the last strain • Almost 43% for National Region 9 classified as how Public Health quality themselves in the preparedness world; were lumped with a bunch of states • XBB.1.5 constitutes about 16% of all isolated viruses Global & National COVID-19 Update Global • Per WHO, reported cases have decreased slightly since the prior week; deaths remained fairly constant . • China reported on January 12 that nearly 60,000 people with COVID-19 have died since early December, not including people who died at home. • XBB.1.5 identified in Denmark and the UK. National • XBB.1.5 increased from 30.4% to 43.0% of sequenced samples. Region 9 (AZ, CA, NV, HA, Pacific Islands) • XBB.1.5 associated with 15.8% of sequenced samples. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 107 of 125 6 COVID-19 in Maricopa County • The epidemiology curve for Maricopa County shows the last 60 days have been on a downward trend with COVID-19 for case numbers • Many people are not being tested in a lab vs. in their homes, so the numbers are unrepresented here 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 11/20/22 11/25/22 11/30/22 12/5/22 12/10/22 12/15/22 12/20/22 12/25/22 12/30/22 1/4/23 1/9/23 1/14/23 COVID-19 in Maricopa County Over the last 60 days, the number of COVID-19 cases reported to MCDPH has been decreasing. 60 - day epi curve Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 108 of 125 7 COVID-19 Hospital Metrics The metric shown are in addition to case counts; the top graph is the number of new admissions due to COVID- 19 COVID-19 Variants A comparison was provided, displaying XBB.1.5 being at 3% (top right bar) with that of Region 9 being 16% and 43% nationally. The county has a much smaller proportion of XBB.1.5 compared to the rest of the country. The COVID-19 Hospital Metrics 36.5% decrease in new COVID-19 admissions from last week. 0.7% decrease in % of ICU beds in use by COVID -19 patients from last week 0.9% decrease in % of inpatient beds in use by COVID -19 patients from last week. Mon, Nov 14, 2022 – Sat, Jan 14, 2023 New Admissions, Confirmed COVID-19 per 100,000 population, Last 7 Days Daily % Beds Used Daily % ICU Beds Used COVID-19 Variants 59% 53% 39% 39% 32% 23% 16% BA.5, 26% 16% 18% 29% 34% 34% 35% 39% BQ.1.1, 43% 8% 11% 13% 15% 18% 26% 26% BQ.1, 17% 6% 5% 10% 3% 6% 3% 5% BF.7, 4% 3% 4% 2% 5% 3% 7% 7% BN.1, 3% 5% 3% BA.4.6, 3% 2% 2% 2% 4% 2% 3% XBB, 3% XBB.1.5, 3% 10/30/22 11/6/22 11/13/22 11/20/22 11/27/22 12/4/22 12/11/22 12/18/22 Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 109 of 125 8 Reports show that almost every variant trend hits the East coast first and then travels West. Public Health has plans in place to address lots of outbreaks and situations; the difficulty is when something brand new like COVID, it takes time to gather how the virus behaves, spreads, and what mitigation efforts will work. Which helps in the future, but it didn’t help when this occurred. No one had ever seen something such as this that lasted this long in over 100 years. There is talk about annual vaccines; however, according to WHO and the CDC, we are still in a pandemic that has lasted over three years, and plans are forming as they move forward. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 110 of 125 9 Influenza Influenza There were 301 influenza cases reported in week 2 (beginning Jan 8) with a 2022-2023 season total of 16,636cases. 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 Week 40 Week 41 Week 42 Week 43 Week 44 Week 45 Week 46 Week 47 Week 48 Week 49 Week 50 Week 51 Week 52 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Week 22 Week 23 Week 24 Week 25 Week 26 Week 27 Week 28 Week 29 Week 30 Week 31 Week 32 Week 33 Week 34 Week 35 Week 36 Week 37 Week 38 Week 39 Current flu season (2022-2023) N=16,647* 5 season wkly average (2017-2022) N=11,771 2021-2022 Season N=10,024 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 0% 2% 4% 6% 8% 10% 12% 14% Week 40 Week 41 Week 42 Week 43 Week 44 Week 45 Week 46 Week 47 Week 48 Week 49 Week 50 Week 51 Week 52 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Week 22 Week 23 Week 24 Week 25 Week 26 Week 27 Week 28 Week 29 Week 30 Week 31 Week 32 Week 33 Week 34 Week 35 Week 36 Week 37 Week 38 Week 39 Percent of Hospital Visits Current Season (2022-2023) 5 season wkly average (2017-2022) Baseline Last Season (2021-2022) Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 3.9% of all ED and UC visits in week 2 (beginning Jan 8) presented with Influenza-like Illness (ILI). Influenza-like illness in MC hospitals and urgent cares Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 111 of 125 10 RSV An overview of Flu data was shared, showing a dramatic decline. Based on a five-year average, flu season traditionally peaks around the end of December, which is what the charts show. A discussion was had concerning the different times' flu peaks in our county. Public Health is aware that there are still people who need to be vaccinated, and they’re still people at very high risk. Public Health will continue to offer vaccinations RSV There were 214 RSV cases reported in week 2 (beginning Jan 8) with a 2022-2023 season total of 7,558 RSV cases. 0 100 200 300 400 500 600 700 800 900 1,000 Week 40 Week 41 Week 42 Week 43 Week 44 Week 45 Week 46 Week 47 Week 48 Week 49 Week 50 Week 51 Week 52 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Week 22 Week 23 Week 24 Week 25 Week 26 Week 27 Week 28 Week 29 Week 30 Week 31 Week 32 Week 33 Week 34 Week 35 Week 36 Week 37 Week 38 Week 39 Current RSV season (2022-2023) N=7,562 5 Season Weekly Average (2017-2022) N=3,482 Last season (2021-2022) N=3,066 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep COVID-19, influenza, and RSV Reported cases of COVID-19, flu, and RSV are decreasing. 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 40 42 44 46 48 50 52 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 Reported Cases MMWR Week COVID RSV FLU Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 112 of 125 11 and push them out. Fully vaccinated people are nineteen times less likely to die. Being fully vaccinated and getting boosters significantly helps. Public Health receives its guidance from the FDA and CDC. Mpox (formally known as Monkeypox) The chart provided an overview of how Mpox peaked in August vs. now there are no cases since January, which is similar to the county’s Hepatitis curve, in which the county was able to provide more vaccinations ad knock out the disease, unlike COVID, it has more to do with the way it’s transmitted, and with the portion of the population at risk because that was vaccinated. Mpox There have been 483 mpox cases in Maricopa County, 0 reported since 2023. 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 0 3 6 9 12 15 5/1/22 6/1/22 7/1/22 8/1/22 9/1/22 10/1/22 11/1/22 12/1/22 1/1/23 # of Vaccinations Reported Cases Data are provisional; Cases may increase Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 113 of 125 12 Dr. Sunenshine closed out her presentation with the Pfizer Bivalent, which has received a lot of media coverage lately. There are no recommendations to change vaccination recommendations at this time, but the department will keep following them. Announcements and Current Events President/ Board Members There was nothing presented. Adjournment President MacMillan There being no further business, Dr. Stander made a motion to adjourn the meeting, and Ms. Baldauff seconded the motion. The motion passed unanimously. The meeting was adjourned at 4:17 p.m. Preliminary safety signal among Pfizer Bivalent COVID-19 recipients aged 65+ years • Preliminary signal in CDC's VSD (Vaccine Safety Datalink) "raised aquestion of whether people 65 and older who have received the Pfizer-BioNTech COVID-19 Vaccine, Bivalent were more likely to have an ischemic stroke in the 21 days following vaccinationcompared with days 22-42 following vaccination." • No similar signal seen for Moderna Bivalent COVID -19 Vaccine • No similar signals in other data sets (VAERS, CMS, VA, Pfizer global safety database ) • No similar signals from other countries • CDC and FDA are running additional analyses and will present the findings at an FDA VRBPAC meeting on January 26. • No changes to vaccine recommendations at this time. hƩps://www.cdc.gov/coronavirus/2019-ncov/vaccines/safety/bivalent-boosters.html FDA/CDC Press Release (1/13/2023) Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 114 of 125 From: Nicole Harden (PHS) Sent: Tuesday, September 3, 2024 10:13 AM Cc: Vera Sampler (PHS) <Vera.Sampler@maricopa.gov>; Karalyn Spicer (PHS) <Karalyn.Spicer@maricopa.gov> Subject: FW: Board of Health Notification for MCAQD Rules 204 and 205 Good morning, Members of the Board! Please review the email below on behalf of the Maricopa County Air Quality Department. Thank you! Nicole Harden (She/Her) OSCO Division Office Assistant Public Health Organizational Support & Community Operations 4041 North Central Avenue, Suite 1400 Phoenix, AZ 85012 O: 480.271.8374 [ Maricopa.Gov ] Facebook | Instagram | X | YouTube | LinkedIn Dear Members of the Board of Health, This email is to notify you that on August 22, 2024, the U.S. Environmental Protection Agency (EPA) proposed conditional approval of Maricopa County Air Pollution Control Regulations, Rule 205 (Emission Offsets Generated By Voluntary Mobile Source Emission Reduction Credits). The proposed conditional approval identified deficiencies in Rule 205 that must be addressed prior to being permanently approved into the Arizona State Implementation Plan. Per the Maricopa County Air Quality Department (MCAQD) Enhanced Regulatory Outreach Program flow charts, MCAQD is notifying the Board that MCAQD is revising the rule to address EPA deficiencies. MCAQD plans to hold a stakeholder workshop on September 17, 2024, to discuss the deficiencies and remedies with stakeholders. In addition, this email is to notify you that MCAQD plans to begin the rulemaking process to revise Rule 204 (Emission Reduction Credit (ERC) Generation, Certification, And Use). The EPA has not formally acted on Rule 204 but has informed MCAQD that Rule 204 has many of the same deficiencies as Rule 205 and is not approvable in its current form. MCAQD plans to revise Rule 204 through a stakeholder process to address the rule approvability issues. Greg Verkamp Planning Supervisor Air Quality 301 W. Jefferson St., Suite 410 Phoenix, AZ 85003 C: 602-206-0564 E: Gregory.Verkamp@Maricopa.Gov [ Maricopa.Gov ] Facebook | Instagram | Twitter | YouTube | LinkedIn Customer Satisfaction Survey Board of Health Notification for MCAQD Rules 204 and 205 Return to list of attachments Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 115 of 125 This Message Is From an External Sender This message came from outside your organization. Please use caution when corresponding outside the county. From: Mccurry, Craig To: Will Adrian (AQD) Cc: Gregory Verkamp (AQD); Kimberly Butler (AQD) Subject: Input from our CA MERC consultant on Rule 205 Date: Wednesday, July 17, 2024 10:49:25 AM Attachments: image001.png Will, just passing along an assessment I asked for from our MERC consultant in CA: Given that part of the calculation description, it is going to be difficult to generate credits and in my opinion Rule 205 is internally inconsistent. First, the definition of baseline emissions at 203 is: BASELINE EMISSIONS: The average rate at which a baseline vehicle would have actually emitted the pollutant in absence of generating emission reductions during the two preceding calendars years, or two calendar years more representative of normal emissions within the 5-year period immediately before the reduction in qualifying emissions. Which can be compared to the text that you highlighted from Appendix A. Baseline vehicle engine model year corresponds to the calendar year in which the emission reductions are generated by replacing or retrofitting the baseline vehicle. Changing the model year of the baseline vehicle from what it actually is (which is what defines what the vehicle would have “actually emitted”), to the current calendar year is not what we did for WM originally and would have precluded the generation of any significant MERCS. Another internal inconsistency can be found in the definition of replacement vehicle at 207: 207: REPLACEMENT VEHICLE: Vehicle used to generate certified credits that is certified to an emission limit less than the baseline vehicle it replaces and is in compliance with the most recent applicable federal emission standard at the time of replacement. If you have to use the same model year for the baseline and replacement vehicle, it’s generally going to be impossible to generate credits. What I think Appendix A should have said is: Baseline vehicle engine emissions are to be estimated based on the vehicle’s actual model year in the corresponds to the calendar year in which the emission reductions are generated by replacing or retrofitting the baseline vehicle. This is what was done for WM’s NG vehicles for both the baseline and the new vehicles. Maybe we can discuss in more detail sometime next week, Craig Craig McCurry, P.E. Senior Environmental Engineer Copies of all written and electronic Stakeholder input Return to list of attachments Return to Stakeholder #1: Reponses #1 through #2 Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 116 of 125 Ocotillo EHS W: 480 255 9481 C: 602 617 9110 craig.mccurry@intel.com “Great moments are born from great opportunity, that's what you've earned tonight. If we played them ten times they might win nine. But not this game, not tonight” Herb Brooks, 1980 US Olympic Hockey Coach Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 117 of 125 This Message Is From an External Sender This message came from outside your organization. Please use caution when corresponding outside the county. From: Mccurry, Craig To: Will Adrian (AQD) Cc: Kimberly Butler (AQD); Gregory Verkamp (AQD) Subject: RE: MCAQD Draft Rule 205 Date: Friday, September 27, 2024 2:38:11 PM Attachments: image001.png image002.png The other item I forgot about is it clear that the buyer of the credits only needs to produce extra credits if it is using 100% of its NOx limit. Thanks, Craig Craig McCurry, P.E. Senior Environmental Engineer Ocotillo EHS W: 480 255 9481 C: 602 617 9110 craig.mccurry@intel.com “Great moments are born from great opportunity, that's what you've earned tonight. If we played them ten times they might win nine. But not this game, not tonight” Herb Brooks, 1980 US Olympic Hockey Coach From: Mccurry, Craig Sent: Friday, September 27, 2024 1:17 PM To: 'Will Adrian (AQD)' <William.Adrian@maricopa.gov> Cc: Kimberly Butler (AQD) <Kimberly.Butler@Maricopa.gov>; Gregory Verkamp (AQD) <Gregory.Verkamp@Maricopa.gov> Subject: RE: MCAQD Draft Rule 205 Will, got your message. Only minor comments I spoke about briefly but understand why they exist – and were included in the EPA comments Intel submitted last week are: 1. Intel is disappointed that there is not a Clean Diesel option to create MERCs in Rule 205. A new Clean Diesel engine can match the NOx reductions that CNG-powered engine can achieve (per MOVES). 2. Intel has a hard time understanding the intent of having a VMT requirement. If the Fleet owner of the associated MERCs does not change out vehicles with equal or cleaning burning engines they could end up taking joy rides around Phoenix just to meet their VMT requirement and this will actually result in higher emissions. Using that same logic the MERC buyer should get a higher amount of MERCs in years where the Fleet goes over its VMT requirement. 3. Would of preferred off-road vehicles be in 205 (Lisa Beckham also feels that Return to Stakeholder #1: Reponses #3 through #6 Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 118 of 125 way) but I get the timing element of why it isn’t. You should also reach out to United Dairymen of Arizona: Gabriel Hernandez Gabriel.Hernandez@udaz.org; Brandon Clark bclark@udaz.org Thanks, Craig Craig McCurry, P.E. Senior Environmental Engineer Ocotillo EHS W: 480 255 9481 C: 602 617 9110 craig.mccurry@intel.com “Great moments are born from great opportunity, that's what you've earned tonight. If we played them ten times they might win nine. But not this game, not tonight” Herb Brooks, 1980 US Olympic Hockey Coach From: Will Adrian (AQD) <William.Adrian@maricopa.gov> Sent: Friday, September 27, 2024 10:00 AM To: Mccurry, Craig <craig.mccurry@intel.com> Cc: Kimberly Butler (AQD) <Kimberly.Butler@Maricopa.gov>; Gregory Verkamp (AQD) <Gregory.Verkamp@Maricopa.gov> Subject: MCAQD Draft Rule 205 Good morning Craig, This message is just to follow-up on our MCAQD ERC workshop comment period and to confirm you have no additional comments on the current draft Rule 205 (Emission Offsets Generated by Voluntary Mobile Source Emission Reduction Credits) for the local Maricopa County rulemaking. In order for comments to be incorporated into our Notice of Proposed Rulemaking draft rule version, the comment period stated in the workshop for draft Rule 205 was 9/25. We look to post the NPR next week on our EROP website, please feel free to reach out with any questions or issues. Thank you, Will Adrian Senior Planner Air Quality Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 119 of 125 301 W. Jefferson St., Suite 410 Phoenix, Arizona 85003 C: 602-206-1941 E: William.Adrian@Maricopa.Gov [ Maricopa.Gov ] Facebook | Instagram | X | YouTube | LinkedIn Customer Satisfaction Survey Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 120 of 125 This Message Is From an External Sender This message came from outside your organization. Please use caution when corresponding outside the county. Attachments: Rule 205 WM Draft Comments 9 26 24.docx From: Bearden, David <dbearde2@wm.com> Sent: Friday, September 27, 2024 10:57 AM To: Will Adrian (AQD) <William.Adrian@maricopa.gov> Subject: County Rule 205 latest version Hello Will, Here’s the comment sheet we discussed yesterday. Although the process is near final take a look maybe there will be some useful info for you. Dave Bearden Senior Environmental Protection Manager Waste Management 222 S. Mill Ave., Suite 333 Tempe, AZ 85281 602-708-9815 Recycling is a good thing. Please recycle any printed emails. Return to Stakeholder #2: Reponses #7 through #22 1 Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 121 of 125 September 26, 2024 To: Rule Making, Maricopa Air Quality From: Dave Bearden, WMAZ Subject: Waste Management of Arizona (WMAZ) Comments on Proposed Rule 205 WMAZ has reviewed the Maricopa County draŌ Rule 205 posted September 9, 2024. WMAZ recognized mobile sources as dominant contributors to the deterioraƟon of air quality in Maricopa County and partnered with Intel to develop a mechanism to reduce mobile emissions by incenƟvizing the use of cleaner vehicles. AddiƟonally, we appreciate the hard work that the County and EPA are puƫng into the development of this rule. In 2021 WMAZ entered the MERC program with the understanding of the tracking and reporƟng obligaƟons would extend for twenty years and the anƟcipated level of effort to meet those obligaƟons. In order to comply with the evolving requirements, WMAZ has incurred addiƟonal cost to develop programming, using exisƟng data, to determine the mileage within the non-atainment area. This cost did not include the GIS tracking hardware, data storage capacity or maintenance as we already had this infrastructure in place. WMAZ acknowledges that while the addiƟonal requirements added aŌer the cerƟficates were issued were burdensome, they were not prohibiƟve. However, several of the proposed Rule 205 changes add complexity and burdens that risk the rule being prohibiƟve. Our comments below are based on our experience with the exisƟng program and WMAZ’s earnest commitment to improving the environment in which we work and live. General Comments a. The proposed Appendix A, calculaƟons for determining the credits, uses the actual model year for the baseline vehicles emissions which will likely increase the credits compared to the approach used in our 2021 project. This is favorable. b. The compliance of point for our current MERC program is based upon vehicle replacement and not on the mileage. The Proposed Rule will change that as it requires as 12-mn VMT rolling calculaƟon and if there is an emissions short fall then the credit generator and user must take prompt acƟon to report, plan to resolve the short fall and if delays occur in resolving the shorƞall the user may face permit modificaƟons and/or compliance issues. Currently, the agreed upon methodology requires an annual evaluaƟon of the mileage and calculaƟon of the emission reducƟon. Increasing to monthly is Ɵme consuming and adding the compliance steps will be complex. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 122 of 125 c. The 200 mile removal requirement from the Non-Atainment Area excludes ciƟes like Tucson and Flagstaff which will likely be is too restricƟve. At Ɵmes WMAZ moves trucks from Phoenix to these areas. Other fleets may wish to do the same. This may limit parƟcipaƟon in this voluntary rule. Specific Comments d. 218 - add in “….any other adjustments (e.g. for load factors)…” aŌer “…MOVES output emissions factors.” e. 219 – add a definiƟon for “RaƟo Adjusted Emission Factor” found in 401.3,a(2). f. 222 – add a clarificaƟon that the federal engine manufacturer emission standards are not applicable requirements for fleet operators. g. 301.2(c) – Please add text to clarify that our current process of amending vehicle lists as a administraƟve revision is not a modificaƟon requiring public parƟcipaƟon and the revision steps in SecƟon 407 of Rule 220. h. 301.2(d)1(c) & 302.2(f) - Note that future compleƟon dates for the replacement of vehicles are difficult to predict thus there needs to be some flexibility and leniency. When a permit is used for MERC enforcement, and if the compleƟon date is in the permit is not met, it would be a permit violaƟon. OŌen Ɵmes these delays are outside of control of permitee. We recommend that a permit noƟficaƟon be allowed to modify this date, obviously coordinated with the MERC user to ensure that their start up needs are met. i. 302.2(b)(3) & (4) – need to be removed. If the current version of GPS system and soŌware is tracking vehicles then there is no reason to spend funds on a new system. System changes will have unintended impacts across related GIS fleet systems, such as requiring equipment change outs conflicts with many other operaƟon systems on the trucks. AddiƟonally, we operate with the same GPS system naƟonally. The potenƟal impact of this makes this an unreasonable request. AddiƟonally, this is also more stringent that our current permit. j. 302.2(b)(c) – Using 200 miles means in all 4 direcƟons of the edge of Nonatainment Area trucks could not be relocated in a metropolitan area in Arizona. The closest potenƟal metropolitan areas would be in El Centro, CA, Las Vegas, NV, Farmington or Albuquerque, NM or in the county of Mexico. Basically, this prohibits areas like Tucson & Flagstaff which are in atainment. This may hurt the viability of the rule as it would rule out firms that may want to parƟcipate but cannot be due to distance logisƟcs or financial impact. WMAZ proposes language that gives the generator the opƟon of performing a demonstraƟon or air modeling to show that original fleet vehicle operaƟng closer will have no impact to the Maricopa non-atainment area. This is also Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 123 of 125 more stringent that our current permit, and we have already moved units to Tucson as an example. k. 302.2(d) - The statement “The permited generator shall further ensure that any replaced baseline vehicle that is subsequently replaced again, is not operated in any other capƟve fleet owned or operated by the permited generator in the applicable Maricopa County nonatainment area” should be removed as this is confusing, and any subsequent replacement would meet the low emissions rate approved in the MERC. l. 401.2 - 12-month rolling VMT - a. Our current MERC program with Maricopa County is based upon vehicle/engine replacement and not on the mileage, and currently, the agreed upon methodology requires an annual evaluaƟon of the mileage. Increasing that to monthly is Ɵme consuming and complex. Certainty if the mileage matches the applicaƟon that is preferable, but it should not be point of compliance. This is a reasonable approach that will make the program viable. b. WM has spare trucks to replace out of service trucks and has a stable business within the non-atainment area; however, many companies may not have extras units readily available thus this requirement will likely be limiƟng the viability of ERC program. c. Moreover, if there are lower miles, the objecƟve of lowering emissions is met, as CNG is 1/10th emissions of diesel, and parƟcipants in this voluntary program should not face compliance issues. d) Currently we are assessing the VMT and the emissions reducƟons on an annual basis which provides Ɵme for the fleets to assessment, make repairs or order replacements. e) AddiƟonally, the VMT isn’t proporƟonal to the overall emissions, as each vehicle will have a different emission factor, and then subsequent replacements will likely differ again. Therefore, a reducƟon in VMT doesn’t easily equate to a negaƟve shorƞall. m. 401.3 Credit User VMT – Note that the credit user will may have difficulty complying: 1) As an example, if WM provides Intel VMT short fall how would you calculate the emissions reducƟon from the short fall with just the VMT? 2) in (3) 10 days to develop a plan and the 3 months to resolve is not adequate Ɵme; if part of the soluƟon is adding an extra vehicle that could take 9 months for the fleet owner. 3) requirement (4) requires a permit mod within 90 days to reduce emissions. This seems un-reasonable for a large and complex facility. Then in (5) missing these steps would be violaƟon. n. 504.3 – revise “current vehicle mileage” to “monthly vehicle mileage”. o. 505.3 – “the 10th of the month”, should be “10th day of the VMT calculaƟon”. p. App. A, A,3 – 1) using the latest version of MOVES could create a difference from the MOVES used for a approved MERC applicaƟon. Thus, we recommending using version of the MOVES from the MERC applicaƟon. Maricopa County • Air Quality Department • Rule 205 Report to the Board of Supervisors Page 124 of 125 Maricopa County Air Quality Department Planning and Analysis Division Maricopa.gov/AQ