United States
            Environmental Protection                 January 1992
            Agency
            Air/Policy
  &EPA   Innovative  Regulatory
            Strategies Workshop

            Market-Based Incentives and
            Other Innovations for
            Air Pollution Control
            January 15-17, 1992

            Georgetown University
            Conference Center

            Washington, DC
                    Sponsored by:

              U.S. Environmental Protection Agency

Air Quality Management Division     and       Regulatory Innovations Staff
  Office of Air and Radiation            Office of Policy, Planning and Evaluation

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                                                                           45019923
                  INNOVATIVE REGULATORY STRATEGIES WORKSHOP
                                          AGENDA
                              WEDNESDAY, JANUARY 15, 1992
11:00 a.m. - 1:00 p.m.

1:00 p.m.

  Welcome



  Opening Remarks
  Overview of
  U. S. Programs
  Keynote Address


Session I
2:30 - 5:45 p.m.

  Introduction
  Case Studies
Registration

Welcome and Overview

Barry Korb, Workshop Moderator
Director, Regulatory Innovations Staff
Office of Policy, Planning and Evaluation, U.S. EPA

John Seitz, Director
Office of Air Quality Planning and Standards
Office of Air and Radiation, U.S. EPA
        and
Maryann Froehlich, Acting Director
Office of Policy Analysis
Office of Policy, Planning and Evaluation, U.S. EPA

John O'Connor, Senior Program Manager
Radian Corporation
        and
Linda Critchfield
Acid Rain Division
Office of Air and Radiation, U.S. EPA

William Rosenberg, Assistant Administrator
Office of Air and Radiation, U.S. EPA

Innovative Uses of Taxes and Fees for Stationary and Mobile Sources
Barry El man
Regulatory Innovations Staff
Office of Policy, Planning and Evaluation, U.S. EPA

Louisiana Environmental Scoring System/Property Tax Exemptions
John Glenn
Louisiana Department of Environmental Quality
Baton Rouge, Louisiana

Drive Plus: Sales Tax/Rebate Based Upon Vehicle Emissions
  and Fuel Efficiency
Deborah Gordon
Union of Concerned Scientists
Berkeley, California

Alternative Fuels Programs
Kevin McCarthy
Office of Legislative Research
Hartford, Connecticut
  Concurrent Small Group Discussions

Videos and Displays
6:00 p.m.               Reception (Cash Bar)

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                               THURSDAY, JANUARY 16,1992
Session II               Marketable Permits for Stationary, Mobile, and Area Sources
8:15 a.m. - 12:15 p.m.

  Introduction           Karen Martin
                        Office of Air Quality Planning and Standards
                        Office of Air and Radiation, U.S. EPA

  Case Studies           South Coast Marketable Permits Program:  VOC and NO, Sources
                        Pat Leyden
                        South Coast Air Quality Management District
                        Los Angeles, California

                        Locomotive Emissions Trading
                        Marijke Bekken
                        California Air Resources Board
                        Sacramento, California

                        Wood Stove/Fireplace Marketable Permit Program
                        Nicholas Kirsch
                        Telluride Transit Company
                        Telluride, Colorado

  Concurrent Small Group Discussions

Luncheon
12:30 p.m.

  Luncheon Speaker     Richard Morgenstern, Acting Assistant Administrator
                        Office of Policy, Planning and Evaluation, U.S. EPA
Session III
2:00 - 5:30 p.m.

  Introduction
  Case Studies
Other Innovative Strategies for Air Pollution Control
Conniesue Oldham
Office of Air Quality Planning and Standards
Office of Air and Radiation, U.S. EPA

Free Bus Ride/Voluntary No Drive Day
Ray Bishop
Tulsa City/County Health Department
Tulsa, Oklahoma

Media Programs to Encourage Carpooling
Lynn Sonntag
Disney Productions
Los Angeles, California

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                                THURSDAY JANUARY 16, 1992


Session III (Continued)   Other Innovative Strategies for Air Pollution Control
2:00 - 5:30 p.m.
                        Employer-Based Trip Reduction Programs
                        Sarah Siwek
                        LA County Transportation Commission
                        Los Angeles, California

                        SCRAP (Old Car Buy Back Program)
                        Terrence Larson
                        Unocal
                        Los Angeles, California

  Concurrent Small Group Discussions


                                 FRIDAY, JANUARY 17, 1992


Session IV              Dialogue on Issues Leading to Future Research
9:00 a.m. - 12:00 p.m.

       This session will provide an opportunity for all workshop attendees to:

       •      Share highlights and synthesize issues raised during the small group discussions

       •      Hear about additional programs identified by individuals in the concurrent small group
              discussions

       •      Participate in the definition of a future research agenda

Closing Remarks

Adjourn
12:00 p.m.
EPA is not endorsing any particular program featured in this workshop, but it is providing an
opportunity for the interaction of people who are involved in real applications of these strategies.

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                          WORKSHOP COMMITTEE
                        Conniesue Oldham
                        Workshop Chairperson
                        Office of Air Quality Planning and Standards
                        Office of Air and Radiation
                        U.S. EPA
                        Karen Martin
                        Regulatory Strategies Section Chief
                        Office of Air Quality Planning and Standards
                        Office of Air and Radiation
                        U.S. EPA
                        Barry Elman
                        Air Innovations Program Manager
                        Regulatory Innovations Staff
                        Office of Policy, Planning and Evaluation
                        U.S. EPA
Key for Nametag Colors:

      Green = EPA                       Blue  = State/Local Agency
      Grey   = Environmental, Academic     Gold  = Industry, Other

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                                Resource People for Session I
           Innovative Uses of Taxes and Fees for Stationary and Mobile Sources
Ahearn, Stephen
Arizona Energy Office
3800 N. Central
Suite 1200
Phoenix, AZ  85012
602-280-1420

Anderson, Bob
Research Manager
American Petroleum Institute
1220 L Street, NW
Washington, DC 20005
202-682-8000

Atcheson, John
Chief, Prevention Integration Branch
Pollution Prevention Division
Office of Air  and Radiation
U.S. Environmental Protection Agency
(PM-222B)
Waterside Mall
401 M Street, SW
Washington, DC 20460 N
202-260-4164

Austin, Jim
Assistant to Senator Owen
Environmental Conservation Committee
New York State Senate
310 Legislative Office Building
Albany, NY  12247
518-455-3411

Breedlove, Buz
Senior Consultant
California Senate Office of Research
1020 N Street
Suite 565
Sacramento, CA 95814
916-445-1727

Buchert, Cy
Director
Div. of Policy Analysis & Planning
Dept. of Environmental Quality
7290 Bluebonnet Drive
P.O. Box 82263
Baton Rouge, Louisiana  70884
504-765-0735
Carlson, Laurel
Deputy Director
Division of Air Quality
Dept. of Environmental Protection
1 Winter Street
Seventh Floor
Boston, Mass.  02108
617-292-5630

Carruthers, Cathy
Washington State Department of Ecology
Mail Stop PV-11
Post Office Box 47600
Olympia, Washington 98504-7600
206-459-6014

Conroy, Dave
Section Chief
U.S. Environmental Protection Agency
Region I
JFK Federal Building
Room 2203
Boston, MA 02203-2211
617-565-3254

Deck, Leland
Economist
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-12
Research Triangle Park, NC 27711
919-541-5294

Dion, Jerry
Program Manager
Policy & Planning Energy Office
Arizona Dept. of Commerce
3800 North Central Avenue
Suite 1200
Phoenix, AZ 85012
602-280-1420

Elman, Barry
Air Innovation Program Manager
Office of Policy, Planning, and Evaluation
U.S. Environmental Protection Agency (PM-221)
Waterside Mall
401 M Street, SW
Washington, DC 20460
202-260-2727

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                                Resource People for Session I
           Innovative Uses of Taxes and Fees for Stationary and Mobile Sources
                                          (Continued)
Farber, Steve
Professor
Dept. of Economics
Louisiana State University
Baton Rouge, LA 70803
504-388-3791

Glenn, John C.
Policy and Planning Administrator
Department of Environmental Quality
7290 Bluebonnet Drive
P.O. Box 82263
Baton Rouge, Louisiana  70884
504-765-0720

Gordon, Deborah
Senior Transport Analyst
Union of Concerned Scientists
c/o Lawrence Berkeley Laboratory
Building 90-3124
One Cyclotron Road
Berkeley, California 94720
415-486-4321

Hudson, Larry
Manager, Alternative Fuel Vehicles
N.Y. State Energy Research &
Development Authority
2 Rockefeller Plaza
Albany, NY 12223
518-465-6251, ext. 209

Jones, Tom
Senior Staff Engineer
Union Carbide Corporation
P.O. Box 50
Hahnville, Louisiana 70057
504-468-4103

Madriaga, Bruce
Economist
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-13
Research Triangle Park, NC  27711
919-541-5290
Martin, Karen
Chief, Regulatory Strategies Section
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-12
Research Triangle Park, NC 27711
919-541-5274

Mayer, Nancy
Environmental Engineer
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-15
Research Triangle Park, NC 27711
919-541-5390

McCarthy, Kevin E.
Associate Analyst
Office of Legislative  Research
Legislative Office Building
Room 5300
Capitol Avenue
Hartford, Connecticut  06106
203-240-8400

McGinn, Andy
Manager, State & Local Relations
American Gas Association
1515 Wilson Blvd.
Arlington, VA 22209
703-841-8597

Miles-McLean, Robin
Office of Policy, Planning, and Evaluation
U.S. Environmental Protection Agency (PM-221)
Waterside Mall
401 M Street, SW
Washington, DC 20460
202-260-1126

Morton, Brian
Economist
Research Triangle Institute
P.O. Box 12194
Research Triangle Park, NC 27709
919-541-7094

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                               Resource People for Session I
          Innovative Uses of Taxes and Fees for Stationary and Mobile Sources
                                         (Continued)
Nogee, Alan
Energy Program Director
MASSPIRG
29 Temple Place
Boston, MA 02111
617-292-4800

Oldham, Conniesue
IRS Workshop Chairperson
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-12
Research Triangle Park, NC 27711
919-541-7774

Ormond, Amanda
Energy and Environmental Planner
Arizona Energy Office
3800 N. Central
Suite 1200
Phoenix, Arizona 85012
602-280-1420

Roy, Nikki
Pollution Prevention Specialist
Environmental Defense Fund
1616 P Street, NW
Washington, DC  20036
202-387-3500

Schroeer, Will
U.S. Environmental Protection Agency (PM-221)
Waterside Mall
401 M Street, SW
Washington, DC  20460
202-260-1126

Sullivan, Robin
Planning Section (6T-AP)
U.S. Environmental Protection Agency
Region VI
1445 Ross Avenue
Dallas, Texas  75202
214-655-7214
Wilcox, Rich
Tehnical Support Staff
U.S. Environmental Protection Agency, OMS
Region VI
2565 Plymouth Road
Ann Arbor, Michigan 48105
313-668-4390

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                                  Resource People for Session n
                  Marketable Permits for Stationary, Mobile, and Area Sources
Aarni, Charles
Chevron
P.O. Box 97
324 W. El Segundo Blvd.
ElSegundo, CA  90245
213-615-5285

Anderson, Glen
Senior Economist
Environmental Defense Fund
128 E. Hargett Street
Raleigh, NC 27601
919-821-7793

Bekken, Marijke
Associate Air Pollution Specialist
Off-Road Control Section
Air Resources Board
9528 Telstar Avenue
El Monte, California  91731
818-575-6684

Broadbent, Jack
Office of Planning and Rules
South Coast Air Quality Management District
21865 Copley Drive
P.O. Box 4939
Diamond Bar, CA  91765
714-396-3119

Bush, Jan
Deputy Air Pollution Control Officer
Bay Area Air Quality Management District
939 Ellis Street
San Francisco, CA 94121
415-749-4943

Chamberlin, John
Office of Policy, Planning, and Evaluation (PM-221)
U.S. Environmental Protection Agency
Waterside Mall
401 M Street, SW
Washington, DC  20460
202-260-2762
Critchfield, Linda
Acid Rain Division (ANR-445)
U.S. Environmental Protection Agency
Waterside Mall
401 M Street, SW
Washington, DC 20460
202-260-7915

Deck, Leland
Economist
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-12
Research Triangle Park, NC 27711
919-541-5294

Elman, Barry
Air Innovations Program Manager
Office of Policy, Planning, and Evaluation (PM-221)
U.S. Environmental Protection Agency
Waterside Mall
401 M Street, SW
Washington, DC 20460
202-260-2727

Goffman, Joe
Senior Attorney
Environmental Defense Fund
1616 P Street, NW
Washington, DC 20036
202-387-3500

Kirsch, Nicholas
Telluride Transit Company
P.O. Box 159
218 West Gregory Street
Telluride, CO  81435
303-728-3512

Larson, Terrence
Manager
Environmental Affairs
Unocal Corporation
911 Wilshire Blvd.
Suite 1114
Los Angeles, CA  90017
213-977-7294

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                                Resource People for Session n
               Marketable Permits for Stationary, Mobile, and Area Sources
                                          (Continued)
Leyden, Pat
Deputy Executive Officer of Planning and Rules
South Coast Air Quality Management District
21865 E. Copley Drive
P.O. Box 4939
Diamond Bar, CA  91765-0938
714-396-3119

Loeb, Alan
Energy/Environment Policy Analyst
Argonne National Laboratories
9700 South Cass Avenue
EID/900
Argonne, Illinois  60439-4832
708-252-6473

Madriaga,  Bruce
Economist
Office of Ah- Quality Planning and Standards
U.S. Environmental Protection Agency
MD-13
Research Triangle Park, NC  27711
919-541-5290

Martin, Karen
Chief, Regulatory Strategies Section
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-12
Research Triangle Park, NC  27711
919-541-5274

Mayer, Nancy
Environmental Engineer
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-15
Research Triangle Park, NC  27711
919-541-5390

McGinn, Andy
Manager, State and Local Relations
American Gas Association
1515 Wilson Blvd.
Arlington,  VA 22209
703-841-8597
Morton, Brian
Economist
Research Triangle Institute
P.O. Box 12194
Research Triangle Park, NC 27709
919-541-7094

Nichols, Mary
Senior Staff Attorney
National Resources Defense Council
617 South Olive Street
Suite 1210
Los Angeles, CA 90014
213-892-1500

Oldham, Conniesue
IRS Workgroup Chairperson
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-12
Research Triangle Park, NC 27711
919-541-7774

Palmisano, John
President
AER*X, Inc.
1990 M  Street, NW
Suite 610
Washington, DC 20036
202-463-6909

Repsher, Bill
Office of Enforcement (LE-134A)
U.S. Environmental Protection Agency
Waterside Mall
401 M Street, SW
Washington, DC 20460
202-260-2854

Rudd, John
Office of Enforcement (LE-134A)
U.S. Environmental Protection Agency
Waterside Mall
401 M Street, SW
Washington, DC 20460
202-260-2864

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                                Resource People for Session n
               Marketable Permits for Stationary, Mobile, and Area Sources
                                          (Continued)
Sonntag, Lynn
Senior Counsel
The Walt Disney Company
500 S. Buena Vista Street
Burbank, California  91521-0321
818-560-7094

South, David
Economist & Section Manager
Argonne National Laboratories
9700 South Cass Avenue
EID/900
Argonne, Illinois  60439-4832
708-252-6107

Stahl, Cynthia
Air, Radiation, and Toxics Division
Region III, 3AT-13
U.S.  Environmental Protection Agency
841 Chestnut Street
Philadelphia, PA  19107
215-597-9337

Sullivan, Robin
Planning Section  (6T-AP)
Region VI
U.S.  Environmental Protection Agency
1445 Ross Avenue
Dallas, Texas 75202
214-655-7214

Tether, Ivan
Senior Counsel
Pacific Enterprises
P.O. Box 60043
Los Angeles, CA  90060
213-895-5150

Ungvarsky, John
Environmental Protection Specialist
Air and Toxics Division
Region IX
U.S.  Environmental Protection Agency
75 Hawthorne Street
San Francisco, CA 94105
415-744-1188
Van Ommering, Lucille
Executive Office
California Air Resources Board
P.O. Box 2815
Sacramento, CA  95812
916-323-0296

Vogel, Ray
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-15
Research Triangle Park, NC 27711
919-541-3153

Whynot, Jill
South Coast Air Quality Management District
21865 Copley Drive
P.O. Box 4939
Diamond Bar, CA 91765
714-396-3104

Wilcox, Rich
Technical Support Staff
Office of Mobile Sources
U.S. Environmental Protection Agency
2565 Plymouth Road
Ann Arbor, Michigan 48105
313-668-4390

Wilsie, Terri
Office of Policy Analysis Review (ANR-443)
U.S. Environmental Protection Agency
Waterside Mall
401 M Street, SW
Washington, DC  20460
202-260-1360

Wochnick, Verne
Manager of Government Affairs
Hughes Aircraft Company
Corporate Headquarters
P.O. Box 45066
7200 Hughes Terrace
Building C-l, M/S C129
Los Angeles, CA 90045-0066
310-568-6318

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                                  Resource People for Session HI
                      Other Innovative Strategies for Air Pollution Control
Anderson, Bob
Research Manager
American Petroleum Institute
1220 L Street, NW
Washington, DC 20005
202-682-8000

Armstrong, Jane
Senior Project Manager
Office of Mobile Sources
U.S. Environmental Protection Agency
2565 Plymouth Road
Ann Arbor, MI 48105
313-668-4441

Aspy, Dale
U.S. Environmental Protection Agency, Region IV
Mobile Source Unit
345 Courtland Street, NE
Atlanta, Georgia 30365
404-347-5014

Bassett, Dave
Pollution Prevention Division (PM-222B)
U.S. Environmental Protection Agency
Waterside Mall
401 M Street, SW
Washington, DC 20460
202-260-2720

Bishard, Laura
Assistant Coordinator
Colorado Department of Health
Clean Air Colorado
4210 East llth Avenue
Denver, CO 80220
303-331-8559

Bishop, Ray
Manager
Air, Water, Waste, and Vector Programs
Tulsa City/County Health Department
4616 E.  15th Street
Tulsa, Oklahoma  74112
918-744-1000
Brown, Jack
Director, Environmental Health
City/County Health Department
1900 E. 9th Street
Wichita, Kansas  67214
316-268-8457

Byrum, Larry
Director
Air Monitoring & Analysis Division
Oklahoma State Dept. of Health
1000 N.E. 10th Street, MC0201
Oklahoma City, Oklahoma 73117-1299
405-271-5220

Bush, Jan
Deputy Air Pollution  Control Officer
Bay Area Air Quality Management District
939 Ellis  Street
San Francisco, CA  94121
415-749-4943

Cappadoro, Jill Kupferberg
Director  of Marketing
Pinellas Suncoast Transit Authority
14840 49th Street, N
Clearwater, Florida 34622-2893
813-530-9921

Colt, Sandra
Program  Director
American Lung Association of Atlanta
723 Piedmont Avenue, NE
Atlanta, GA 30365-0701
404-872-9653

Conroy, Dave
Section Chief
U.S. Environmental Protection Agency
Region I
JFK Federal Building
Room 2203
Boston, MA 02203-2211
617-565-3254

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                               Resource People for Session HI
                    Other Innovative Strategies for Air Pollution Control
                                          (Continued)
Deck, Leland
Economist
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-12
Research Triangle Park, N.C. 27711
919-541-5294

Elman, Barry
Air Innovations Program Manager
Office of Policy, Planning, and Evaluation (PM-221)
U.S. Environmental Protection Agency
Waterside Mall
401 M Street, SW
Washington, D.C. 20460
202-260-2727

Fitzpatrick, Maura
Director, Office of Air Policy
NY City Dept. of Environmental Protection
59-17 Junction Blvd., 4th Floor
Corona, NY 11368
718-595-4462

Irwin, John
Director
Kansas Dept. of Health & Environment
Forbes Field, Bldg. 740
Topeka, Kansas 66620
913-296-1593

Larson, Terrence
Manager
Environmental Affairs
Unocal Corporation
911 Wilshire Blvd.,  Suite 1114
Los Angeles, CA 90017
213-977-7294

Martin, Karen
Chief, Regulatory Strategies Section
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-12
Research Triangle Park, NC 27711
919-541-5274
Mayer, Nancy
Environmental Engineer
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-15
Research Triangle Park, NC 27711
919-541-5390

McGill, Michael
Executive Director
Bay Area Economics Forum
200 Pine Street
Suite 300
San Francisco,  CA 94104
415-981-7117

Miles-McLean, Robin
Office of Policy, Planning and Evaluation
U.S. Environmental Protection Agency (PM-221)
Waterside Mall
401 M Street, SW
Washington, DC  20460
202-260-1126

Oldham, Conniesue
IRS Workshop Chairperson
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
MD-12
Research Triangle Park, NC 27711
919-541-7774

Riehle, Mike
Manager, Policy Analysis
Environmental Affairs
Unocal Corporation
911 Wilshire Blvd., Suite 1114
Los Angeles, CA  90017
213-977-7311

Roach, Bill
Supervisor, Market Development
Seattle Metro
MS128
821 Second Avenue
Seattle, WA  98104
206-684-1620

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                               Resource People for Session HI
                    Other Innovative Strategies for Air Pollution Control
                                          (Continued)
Sargent, Katherine
Office of Mobile Sources
U.S. Environmental Protection Agency
2565 Plymouth Road
Ann Arbor, Michigan 48105
313-668-4441

Schroeer, Will
Office of Policy, Planning and Evaluation (PM-221)
U.S. Environmental Protection Agency
Waterside Mall
401 M Street, SW
Washington, DC 20460
202-260-1126

Siwek, Sarah
Director, Transportation Demand Management
Los Angeles Co. Transportation Comm.
818 West 7th Street
Suite 1100
Los Angeles, California  90017
213-244-6278

Slavin, Marian
Travel Reduction Program Manager
Pima Association of Governments
177 North Church, Suite 405
Tucson, AZ 85701-1187
602-792-2952

Sonntag, Lynn
Senior Counsel
The Walt Disney Company
500 S. Buena Vista Street
Burbank, California  91521-0321
818-560-7094

Ungvarsky, John
Environmental Protection Specialist
Air Programs Branch
U.S. Environmental Protection Agency (A-5-3)
Region 9
75 Hawthorne Street
San Francisco, CA  94105
415-744-1188
Van Ommering, Lucille
Executive Office
California Air Resources Board
P.O. Box 2815
Sacramento, CA  95812
916-323-0296

Von Bodungen, Gus
Administrator
Louisiana Dept. of Environmental Quality
P.O. Box 82135
Baton Rouge, Louisiana 70810
504-765-0110

Wilcox, Rich
Project Manager
Technical Support Staff
U.S. Environmental Protection Agency
2565 Plymouth Road
Ann Arbor, Michigan 48105
313-668-4390

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                               EVALUATION OF
             INNOVATIVE REGULATORY STRATEGIES WORKSHOP
                       January 15-17, 1992, Washington D.C.

A.  GENERAL

1. My overall evaluation of the workshop is:

      Excellent       Good       Average       Fair       Poor

2. The oral presentations (session topics and case study speakers) were:

      Excellent       Good       Average       Fair       Poor

3. The concurrent small group discussion sessions were:

      Excellent       Good       Average       Fair       Poor

4. The Friday panel that reported back highlights of the small group discussions was:

      Excellent       Good       Average       Fair       Poor

5. The workshop gave me ideas for innovative regulatory strategies that could be
   applied in my State/local area.
                                    Agree             Disagree
6. The length of the workshop was:

      Too short               About right             Too long

7. The location of the workshop (Washington, D.C.) was:

      Excellent       Good       Average       Fair       Poor

8. The facility used for the workshop (Georgetown University Conference Center) was:

      Excellent       Good       Average       Fair       Poor



B. SESSION I:  INNOVATIVE USES OF TAXES AND FEES

1. I attended the	small group discussion session.

2. The level and quality of idea exchange at this small group discussion session was:

      Excellent       Good       Average       Fair       Poor

3. The key issues, programs, and strategies pertaining to this session topic were
   discussed.
                                    Agree             Disagree

4. Other programs, strategies, or issues that fit under this session topic but that were
   not addressed during the small group discussion are:
                                                                  (over)

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C. SESSION II: MARKETABLE PERMITS

1.  I attended the	small group discussion session.

2.  The level and quality of idea exchange at this small group discussion session was:

      Excellent       Good       Average       Fair       Poor

3.  The key issues, programs, and strategies pertaining to this session topic were
   discussed.
                                     Agree              Disagree

4.  Other programs or strategies that fit under this session topic but that were not
   addressed during the small  group discussion are:
D.  SESSION III: OTHER INNOVATIVE STRATEGIES

1.  I attended the	small group discussion session.

2.  The level and quality of idea exchange at this small group discussion session was:

      Excellent        Good       Average       Fair       Poor

3.  The key issues, programs, and strategies pertaining to the session topic were
   discussed.
                                     Agree              Disagree

4.  Other programs or strategies that fit under this session topic but that were not
   addressed during the small  group discussion are:
E. COMMENTS (ideas for improving the workshop, what you found most helpful, etc.)
Name (optional)	   State or Affiliation^
Please return your completed evaluation form to the Registration Desk at the conclusion
of the workshop.

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Overview

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      EPA INNOVATIVE REGULATORY STRATEGIES WORKSHOP

                         Market-Based Incentives and
                   Other Innovations for Air Pollution Control
Scope
The Clean Air Act Amendments of 1990 allow, and in some cases require, states to
adopt effective, market-based strategies or other innovative types of control. The U.S.
Environmental Protection Agency's innovative regulatory strategies program seeks to
encourage and facilitate, as appropriate, the development, demonstration, and
implementation of a wide range of innovative regulatory programs, including market-
based, informational, and pollution prevention approaches.
Objectives

The purpose of this workshop is to bring together and facilitate discussions among
individuals with practical experience or interest in developing market-based strategies.
The workshop is designed to:

      •     Promote the consideration and use of market-based regulatory strategies
      •     Explore design and implementation issues related to strategies such as
            marketable emission permits, pollution fees, and transportation controls
      •     Facilitate peer exchange of information and ideas on actual programs
            (either existing or being developed)
      •     Identify implementation obstacles and other issues for future research

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Summary of Programs

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Summary of Innovative Regulatory Strategy Programs
     Found in the Literature and Popular Press
                   Prepared by:

                Radian Corporation
     3200 East Chapel Hill Road/Nelson Highway
                  P.O. Box 13000
         Research Triangle Park, NC 27709
          Under EPA Contract 68-D8-0065
                   October 1991

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                            TABLE OF CONTENTS
                                                                           Page


I.     Transportation Control Measures	  1

      A.    Alternative Fuels	  1

            1.    Alternative Fuel Requirements (General)  	  1
            2.    Natural Gas  	  1
            3.    Methanol/Ethanol	  3
            4.    Use of Electric Cars  	  5
            5.    Low Emission Vehicles	  7
            6.    Fuel From Corn/Other Crops	t .  .  8
            7.    Tailpipe Testing/Inspection	  8

      B.    Vehicle Fees/Taxes/Rebates	  9

            1.    General 	  9
            2.    Higher Registration Fees	  9
            3.    Increased Bridge Tolls  	   10
            4.    Fees for Single Occupancy Vehicles	   11
            5.    Fees for Motorists Driving Long Distance	   11
            6.    Vehicle Buy-Back Programs	   12
            7.    Clean Vehicle Rebates Through Reduced State Sales Taxes  . .   13
            8.    Fee on High Emission Fuels	   15
            9.    Congestion Pricing  	   15
            10.   Parking Fees at Shopping Centers	   16
            11.   Pay As You Drive Automobile Insurance  	   17

      C.    Carpooling/Ride Sharing	   18

            1.    Carpooling/Ridesharing Programs	   18
            2.    Businesses Required to Submit Trip Reduction Plans  	   21
            3.    Examples of Employees Incentives  	   24
            4.    Businesses Charging for Employee Parking  	   28
            5.    Tax Breaks for Employers That Encourage Commuting	   29
            6.    Telecommuting . :	   30
            7.    Walk/Jog/Bicycle	   31
            8.    4-Day Work Week  	   34
            9.    High Occupancy Vehicle Lanes	   35
                                       n

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                       TABLE OF CONTENTS (Continued)


      D.    Mass Transit	   35

            1.    General  	   35
            2.    Light Rail/Maglev 	   37
            3.    Metro	   38
            4.    Buses  	   39
            5.    Van Pools	   42

      E.    Restrictions on Road Construction	   42

II.    Fireplace Control Measures	   43

III.   Green Tax/Carbon Tax/Emission Fees	   44

IV.   Consumer Products Control	   48

V.    Grants/Awards for Innovation Assistance	   48

VI.   Green Labeling	   48

VII.   Charges for Waste Disposal	   52

VIII.  Increased Permit Fees/Inspection Fees (Facilities)	   52

IX.   Requirements for New Residential/Commercial Development 	   53

X.    Public Education	   54

XI.   Emissions Trading/Offsets	   54

XII.   Adverse Publicity	   56

XIII.  Incentives for Tree Planting	   57

XIV.  Incentives to Reduce Electric Demand	   57

XV.   Environmental Cities Coalition  	   63
                                       111

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I.      Transportation Control Measures

       A.   Alternative Fuels

            1.  Alternative Fuel Requirements (General)

               a.  Colorado - passed a bill that calls for 10% of new motor vehicles
                   bought or leased by the State during 1991-92 to run on clean-
                   burning alternative fuels.  Each year through 1994 and 1995, an
                   additional 10% of all new vehicles will have to use alternative fuels.
                   The State also provides a $200 rebate to anyone who buys a clean-
                   fuel vehicle or retrofits an existing car or truck.  Tilley, C.R.  "Clean
                   Air and Natural Gas Vehicles."  Public Utilities Fortnightly.
                   September 13, 1990, p. 31.

               b.  Utah ~ Utah legislature may vote in favor of a plan to eliminate the
                   sales tax on alternative-fueled vehicles, one of 123 recommendations
                   adopted in summer 1990 by the  Governor's Commission on Clean
                   Air.  The exemption covers sales of motor vehicles or equipment for
                   converting existing vehicles and refueling equipment that meet 1990
                   CAA. "Alternative Fuels: Politics Threatens New York Program
                   for Must-Buy  Clean Fueled Vehicles" Energy Report. January 14,
                   1991. (Newsletter)

               c.  California - 1995  rules establish strict emission limits for low-
                   emission vehicles (LEVs) and provide an incentive for alternative-
                   fueled and electric vehicles  "Cuomo: New York Will Adopt
                   California Auto Standards"  Air  Water Pollution Report  March 4,
                   1991. (Newsletter)

               d.  Access to ride lanes or preferential parking for alternative fuel cars
                   "The Greening of Detroit" Business Week April 8, 1991, p. 60.

            2.  Natural Gas

               a.  Pennsylvania - The Pennsylvania Energy Office  provided the State's
                   alternative fuels program with $10 million last year. The energy
                   office committed half of that funding to private companies, transit
                   authorities, a State university,  and several local governments for the
                   conversion of 124  fleet vehicles to natural gas. The program is also
                   assisting the demonstration of a  dedicated natural gas bus in
                   Altoona's transit system. And 63 Pennsylvania Department of
                   Transportation vehicles are set to be converted to natural gas.
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                   Through public-private partnership with the Pennsylvania Energy
                   Office, Columbia Gas is converting 25 transit authority vehicles in
                   York where they own and operate a refueling station. Columbia
                   Gas was instrumental in developing the nation's first dedicated
                   natural gas bus and loaned the bus for field testing to the transit
                   authority in Columbus, Ohio, which has been using it in regular
                   service 5  days/week since early 1990.  Tilley,  C.R.  "Clean Air and
                   Natural Gas Vehicles." Public Utilities Fortnightly.  September 13,
                   1990, pp. 31, 34.

               b.  Broward  County. Florida - Gray Line Corp. is seeking approval to
                   operate 50 buses, mini-buses, and vans on compressed natural gas
                   (CNG) instead of diesel fuel or gasoline.  Gray Line wants
                   $2.25 million to buy 15 new buses and vans that operate on CNG,
                   and to convert 35 existing vans from gasoline to the alternative
                   fuels.  Of that money, 20 percent will come from Gray Line. The
                   rest will be subsidized by taxpayers through Federal and State funds.
                   Under the latest plan, Gray Line would purchase 5 new 40-foot
                   buses, 5 minibuses, and 5 vans, all used to shuttle passengers to and
                   from the  county's Tri-Rail Stations. If approved by the
                   Metropolitan Planning Organization and the Urban Mass
                   Transportation Administration, Gary Line could begin operating the
                   new vehicles by early 1992.  "Gray Line Proposes Clean Bus Tax
                   Dollars Sought for Natural Gas Plan"  Sun Sentinel  July 23, 1991,
                   p. 5B.

               c.  T. Boone Pickens head of the Mesa Limited Partnership told the
                   Natural Gas Roundtable that consumers should get a $2,000 tax
                   credit during the first year they own a vehicle capable of running on
                   natural gas or another alternative to gasoline. "Alternative Fuels:
                   Pickens, Energy Group Push Incentives for Consumers Who Buy
                   Clean Cars." Energy Report. December 10, 1990 (Newsletter)

               d.  Los Angeles/San Diego/San Francisco Bay.  The TecoDrive 7000
                   CNG powered engines certified by CARB will fuel 10 new school
                   buses by some Los Angeles, San Diego, and San Francisco Bay area
                   school districts beginning next September. It is built by Tecogen
                   Inc., Waltham, Mass.  CARB data show the CNG powered buses
                   (which seat 66 students each) emit less than 1/3 of the HC  and
                   NOX emissions allowed by the CARB emission limits.

                   The 10 Tecogen buses are being built through a $700,000 grant from
                   the California Energy Commission.  The grant is part of a $100
                   million California program established to replace more than 460
                   school buses built before 1977 with new, cleaner running models.
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                   The first 163 school buses, built at a cost of $20 million, are
                   expected to be available for service by next September. They
                   include 103 diesel powered models and 50 that use methanol in
                   addition to the 10 CNG buses. An additional 300 buses, which may
                   cost as much as $40 million, are expected to be built this year.  "U.S.
                   Gas Fueled Vehicle Program  Intensifies."  Oil & Gas Journal.
                   April 15, 1991, p. 32.

               e.  British Columbia -- In a conference entitled "Roads to Alternative
                   Fuels" held July  1990, participants heard a first-hand account of a
                   government-supported program introducing an alternative
                   transportation fuel. Bill Hennessey of British Columbia (BC) Gas
                   described a 10-year, province-wide program to convert privately
                   owned gasoline autos and light-duty trucks to natural  gas.

                   Initially, the program was hampered by poor quality conversions
                   performed  by inadequately  trained mechanics.  Consumers also were
                   wary of the lack of sufficient refueling stations, and of various
                   problems with station equipment.  BC Gas and the government took
                   a more proactive role.  As an incentive to those interested in
                   opening a refueling station, risk-free, money-backed financing was
                   offered, based on a minimum sales volume. Station operators were
                   provided with engineering assistance. Conversion mechanics were
                   specially licensed, conversion warranties underwritten, and the costs
                   of resolving customer complaints were substantially covered.

                   Although the Canadian government abolished fuel taxes on natural
                   gas and sales tax on the conversion kits, the relatively low price of
                   gasoline through the 1980's acted as a deterrent to consumer
                   participation  in the conversion program. Since 1984,  -11,000
                   vehicles have been converted.  "Roads to Alternative Fuels"  ITS
                   Review November 1990, pp. 2-3.

            3.  Mcthanol/Ethanol

               a.  Nebraska.  Has a market-expansion program to increase ethanol
                   demand, including  an  ethanol production credit equal to
                   20 cents/gal; an excise tax reduction on 10% methanol blends,
                   taxing them at 2 cents/gal less than gasoline; cooperative marketing
                   services for gasoline marketers; an equity investment program
                   through the Nebraska Ethanol Authority and Development Board; a
                   full-time industry assistance program; and performance-based tax-
                   abatement help. "Refiners  Should Look to Mixing Oxygenate in
                   Gasoline Formulas" International Solar Energy Intelligence Report.
                   October 19, 1990. (Newsletter)
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               b.  The United States' National Corn Growers Association wants any
                   new energy legislation to require  use of 10 percent ethanol-blend
                   fuels in all federal vehicle fleets;  appropriate funding for ethanol
                   research and development that is equal to money provided for
                   alternative fuels; and establish federal investment tax credits for
                   expanding existing ethanol plants and constructing new plants. "The
                   United States' National Corn Growers  Association"  Greenhouse
                   Effect Report. April 9, 1991 (Newsletter)

               c.  California - Methanol can be used in fuel-flexible vehicles that
                   automatically adjust  to operate on alcohol fuels or gasoline, or both.
                   The California Energy Commission plans to place 5,000 of these
                   fuel-flexible vehicles with government and private fleets throughout
                   the State by 1993.

                   California has used fuel-flexible vehicles since 1987. In 1990,
                   210 Ford built fuel-flexible vehicles were placed with government
                   and private fleets in California. In addition, there are 20 General
                   Motors Chevrolet  Corsica variable fuel vehicles in California fleets.

                   California Energy  Commission variable fuel demonstration programs
                   for 1991 include the Chevrolet Lumina, the Ford Taurus, and the
                   Volkswagen Jetta.  "Alternate Fuels Come of Age."  Moore, R.E.
                   Gene. The Journal of State Government  Vol 63. p. 93.

               d.  Iowa - The Des Moines Metro Transit Authority will become the
                   first city bus system to turn its entire fleet into vehicles that operate
                   on 80% diesel and 20% ethanol injection by as early as May 1991.
                   The Des Moines project will be funded primarily by a $4.2 million
                   Federal grant and  about $1 million in local and private dollars.   The
                   project could have a significant effect on the economy of this  corn-
                   growing State.  "Corn-Fed Buses" State Government News, p. 35.
                   (date?)

               e.  Illinois « By 1992, the Greater Peoria Mass Transit District will
                   replace 14 of its diesel buses with ones that run on 100% ethanol.
                   The $4 million project will be paid for  with a $2.1 million Federal
                   grant,  about $1 million from State government, and  the remaining
                   from the private sector. Bradley  University in Peoria plans to study
                   the direct and indirect costs of ethanol once the Peoria buses are in
                   operation. The project could have a significant effect on the
                   economy of this corn-growing State.  "Corn-Fed Buses"  State
                   Government News,  p. 35. (date?)
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            4.  Use of Electric Cars

                a.  Pennsylvania ~ Legislation in House of Representatives to eliminate
                   the Pennsylvania State sales tax, registration, and inspection fees for
                   electrically powered vehicles.  "US, French Politicians Encourage
                   Use of Electric Cars" Business and the Environment. February 22,
                   1991 (Newsletter)

                b.  France - Proposed tax rebate for buyers of electric cars "US, French
                   Politicians Encourage Use of Electric Cars" Business and  the
                   Environment. February 22, 1991 (Newsletter)

                c.  California — Legislation has been introduced to provide Federal
                   funds for States to encourage development of electric car technology
                   and the regional infrastructure to support it.

                   At the Federal level, a new bill "the Electric Vehicle Research,
                   Development and Commercialization Act of 1991" would  establish a
                   10-year $50-million demonstration program for large or polluted
                   cities to buy electric vehicles for their municipal fleets.  It would
                   also set aside $10 million a year for 3 years for joint ventures with
                   industry to develop electric car infrastructure and $5  million a year
                   for 5 years to assist States with planning and seed money  for
                   alternative-fuel vehicles.  Also, plans to establish a Federal fund to
                   assist States in developing the technology to nurture electric vehicle
                   production. The bill would also set up a capital pool of matching
                   Federal funds for States to sponsor regional corporations  to support
                   development of an electric vehicle industry with ventures  such as
                   industrial parks or telecommunication services.  "Officials Plug
                   Electric Cars to Recharge Economy" Los Angeles Times  May 5,
                   1991, p. 3-B.

                d.  Los Angeles. CA — The Los Angeles Department of Water and
                   Power (DWP) and Southern California Edison last year awarded a
                   $7-million contract to a Swedish firm, Clean Air Transport (CAT),
                   to produce at least 6,000  hybrid electric cars for sale in the Los
                   Angeles market. The luxury sedans, to be fueled by a combination
                   of electricity and a small  internal engine, would initially cost an
                   estimated  $25,000 each and would have a range of 150  miles.  They
                   are slated to hit city roads within the next 4 years. The firm's plans
                   call for production of 35,000 cars by 1997.  Arizona and Utah, Great
                   Britain and various counties in Sweden have also approached the
                   high-tech firm about hosting a long-term production plant.
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                   The CAT sedan will have a top speed of 70 mph and accelerate
                   form 0 to 30 mph in 9 seconds. Their batteries must be replaced
                   every several years at a cost of $800 to $5,000 per car - depending
                   on the number and the nature of the batteries. "Officials Plug
                   Electric Cars to Recharge Economy" Los Angeles Times May 5,
                   1991, p. 3-B.
                       f»

               e.  Westchester. CA -- The DWP and Edison also launched a $2-million
                   research project last year to build an electrified roadway in
                   Westchester. An electric cable is being installed  beneath the
                   pavement on a 1,000-foot segment of a lightly traveled street below
                   Westchester bluffs.  Two  electric vans and a passenger bus will be
                   equipped to draw power from the street by tapping a magnetic field
                   created by the electrified roadway.  This could be the first step
                   toward a full-scale powered roadway in Los Angeles. "Officials Plug
                   Electric Cars to Recharge Economy" Los Angeles Times May 5,
                   1991, p. 3-B.

               f.  Sacramento. CA ~ The Air Resources Board is implementing new
                   legislation to give electric vehicle (EV) buyers  an income tax credit
                   of up to $1,000 and partial sales-tax exemption. "Ready! Set! . . .
                   Charge?" Los Angeles Times. August 7, 1991,  p. E-l.

               g.  California — Throughout  California, utility companies are designing
                   incentive programs, such  as deductions for recharging at night when
                   the electric power load is reduced.  "Ready! Set!  . . . Charge?"  Los
                   Angeles Times. August 7, 1991, p. E-l.

               h.  Los Angeles. CA -- Under the Los Angeles Vehicle Initiative, Los
                   Angeles City Councilman Marvin Braude in 1988 sponsored a
                   worldwide competition for the design of 10,000 electric vehicles for
                   Southern California drivers.  That resulted in a contract with Clean
                   Air Transport, a Swedish-English consortium that is designing a
                   hybrid gasoline-electric, 4-passenger sedan. The  car will be priced
                   in the mid-$20,000 range  and franchised through  local  automobile
                   dealers.

                   The City Council in July  passed a series of recommendations to
                   make Los Angeles an "electric vehicle-ready city." The plan includes
                   massive installation of battery-charging outlets  at public and private
                   parking facilities throughout the city. "Ready! Set! ... Charge?"
                   Los Angeles Times. August 7, 1991, p. E-l.
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               i.   Ford, General Motors, and Chrysler announced earlier this year that
                   they had formed a joint venture to share the costs of research
                   designed to produce a technological breakthrough.  They have
                   pledged $35 million to the project and plan to raise $100 million
                   annually by 1993 from the government and electric utilities for the
                   consortium, known as the United States Advance Battery
                   Consortium.  They are addressing the need to produce a lighter,
                   cheaper, more durable battery.  "Officials Plug Electric Cars  to
                   Recharge Economy" Los Angeles Times May 5, 1991, p. 3-B.

               j.   Phoenix. AZ ~ The Solar and Electric 500 car race is scheduled for
                   April 5-7 to showcase the latest in solar- and  electric-car technology.
                   American Honda recently stepped forward with a "zinc-air" battery-
                   powered entry. General Motors also has announced  that it will
                   retool its Lansing, MI factory to produce its first electric car, the
                   Impact, possibly by 1993.  Development of the alternative
                   technology has taken on a new urgency, with California mandating
                   that automakers produce at least 10% no emission-meaning
                   electric-cars by 2003. Ernie Holden, who founded the Solar and
                   Electric Racing Association, hopes the race will bring together
                   leaders in the field and  promote innovation.   "Electric, Solar Cars
                   Will Race in Valley" Arizona Republic March 13, 1991, p. B-l.

               k.  Los Angeles. CA  — 10 LA-area bus lines would be  served by electric
                   trolley buses  under a preliminary plan approved by the Southern
                   California Rapid Transit District (RTD) late last month. The 10
                   RTD bus lines being considered for electrification carry about
                   250,000 passengers daily along 150 miles of routes.  The 7-year cost
                   estimate of converting the lines to electric trolleybus  service is $570
                   million.  "Regional, State, Local Briefs"  Urban  Transport News
                   April 4, 1991, p. 54.  (Newsletter)

            5.  Low Emission Vehicles

               a.  New York State - State officials proposed Low Emission Vehicle
                   standards modeled after rules in California and would affect model
                   year 1995 cars and light trucks sold in New York. The new proposal
                   would not set one uniform limit on tailpipe emissions.  Car
                   manufacturers could make  vehicles that meet 5  different sets of
                   standards.  The annual average of each manufacturer's fleet would
                   have to comply with an average limit, which would  grow more
                   stringent each year. Beginning in 1998, manufacturers would be
                   required to start selling "zero emission vehicles," which would
                   probably be electric. The fleet averaging provision may allow New
                   York to direct the cleanest operating vehicles to the most polluted
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                                                                           DRAFT
                   areas of the State through incentive programs and fleet purchase
                   requirements "New Car Emission Rules"  Newsday July 30, 1991,
                   p. 27.

            6.  Fuel From Corn/Other Crops

               a.  North Carolina Solar Energy Association suggested slashing taxes on
                   fuels made out  of corn or other crops. "North Carolina" Air Water
                   Pollution Report  May 1990 (Newsletter)

            7.  Tailpipe Testing/Inspection

               a.  The waiver limit is a ceiling on expenditures that must be
                   undertaken if a vehicle fails an inspection/maintenance (I/M) test.
                   The higher the  ceiling, the greater the probability that an older
                   vehicle will be scrapped rather than repaired.  Of the 9 severe
                   ozone nonattainment areas, only Houston has no waiver limit.
                   Connecticut has a $40 limit, Philadelphia a $25 limit on pre-1975
                   and a $50 limit on newer vehicles, Baltimore a  $75 limit,  Milwaukee
                   a $55 limit, California a $50 limit for pre-1972 cars, $90 for 1972-
                   1974 cars, and $125 for 1975-79 cars.  Sierra Research, the Office of
                   Technology Assessment, and the Motor Vehicles Manufacturers
                   Association argue that the waiver limits should  be raised to $300-
                   $500. Higher waiver limits would accelerate the scrapping of
                   vehicles with market values below the waiver limit.

               b.  Several of the 65 State I/M testing programs in existence exempt
                   older vehicles from I/M requirements.  Of the 9 severe ozone
                   nonattainment areas, Baltimore has the largest  exemption: only 1977
                   and newer models  are included in its  program.  California includes
                   models since 1966; Milwaukee includes  models  up to  15 years old.
                   Connecticut, Chicago, and Houston include models since  1968.

                   New York City includes all vehicles in their I/M program.  The
                   Office of Technology Assessment recommends including all vehicles
                   because it would stimulate the replacement of older vehicles by
                   increasing the relative cost of keeping them registered. Reducing
                   Emissions From Older Vehicles. Robert Anderson, American
                   Petroleum Institute, Research Study #053. August 1990,  p. 30.
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       B.   Vehicle Fees/Taxes/Rebates

            1.  General

               a,  Los Angeles. CA - Southern California's plague of smog and traffic
                   could be significantly reduced with 5 incentive-based traffic policies
                   suggested by the Environmental Defense Fund and the Regional
                   Institute of Southern California.

                   These policies, promoted as part of a project called Cleaning
                   Southern California's Air and Protecting its Economy (CSCAPE)
                   include:  1) Removing employer parking subsidies and allowing
                   employers to offer cash incentives to employees who relinquish paid
                   parking privileges.   Free or heavily-subsidized parking  is a  major
                   inducement  for commuters to drive alone.  2) Instituting non-
                   employee parking pricing at major activity  centers such as shopping
                   malls, high schools, and universities. In addition, local zoning
                   practices that currently encourage free parking could be amended
                   with reduced parking requirements. 3) Implementing peak-period
                   congestion fees to relieve traffic during heavy commuting hours
                   (road pricing).  4) Deregulating transit to allow expanded use of
                   private transit services  similar to those that currently serve many
                   airports. Deregulation could make van services, for example, more
                   efficient and a favorable option for commuters. 5) Assessing smog
                   fees on cars in proportion to the number of miles driven and vehicle
                   emissions produced. This policy would reward drivers who cut
                   automobile use and who buy and maintain less-polluting vehicles.
                   Low-income drivers would be assessed smog fees at a lower rate
                   than higher  income persons. Carpoolers would pay less and public
                   transit users would  pay nothing under these policies, but single
                   occupant vehicles would pay the  full fee, which could average $5 to
                   $6 per day on normal workdays.  "Environmentalists Suggest
                   Incentives to Clear  Up Smog, Traffic Congestion" Urban Transport
                   News April 4, 1991, p. 50. (Newsletter)

            2.  Higher Registration Fees

               a.  Washington State ~ Washington Environment 2010 program
                   proposes to  increase registration fees for cars with poor gas mileage,
                   discourage commuting  by cars alone, require Stage II vapor recovery
                   for gas stations, and expand Inspection and Maintenance programs
                   beyond the Seattle  and Spokane areas. "Around  the States:
                   Washington" Air Water Pollution Report.  June 11, 1990
                   (Newsletter)
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               b.  San Diego. CA - San Diego Association of Governments is
                   considering an increased registration fee for motorists who own
                   more than one car.  "Around the States:  CALIFORNIA - Some
                   San Diego motorists spoke sharply against an emissions fee"  Air
                   Water Pollution Report  June 10, 1991 (Newsletter)

               c.  Los Angeles. CA - The AQMD plan also includes a
                   recommendation that the Legislature  revise registration fees  to
                   increase the cost of driving older, higher-polluting vehicles.  "Junkers
                   -- Targets in Smog War."  Los Angeles Times  March 20, 1991,
                   p. 1-A.

               d.  Salem. OR ~ Oregon Environmental  Council worked during the
                   legislative session to pass a much stronger clean-air bill,  one  that
                   would have charged motorists a fee based on the kind of car driven
                   and the amount of miles traveled. Those with old, gas-guzzling cars
                   and plenty of time on the road would have faced the heftiest fees.
                   "Governor Signs  Wide Clean Air Bill" Oregonian  August 6, 1991,
                   p. B-l.

               e.  Ventura County. CA - The Ventura County Board of Supervisors
                   voted to add $2 to the annual registration fee, which raises the cost
                   of registering a car to $28. The fee will fund 8 anti-smog programs,
                   including 4 designed to reduce smog generated by cars.  Those
                   program include  one to promote  ride-sharing and another to require
                   large companies  to purchase vehicles  that run on cleaner fuels such
                   as methanol.  "County Hikes Fees For Car Registration" Los
                   Angeles Times  May 8, 1991, p. B-l.

            3.  Increased Bridge Tolls

               a.  San Francisco. CA ~ San Francisco Commission called for
                   increasing bridge tolls from $1 to $2 and creating  a combined
                   gasoline tax and  smog fee that could boost the price  of gasoline to
                   $4/gal. "San Francisco Commission Drafts Strict Measures for
                   Cleaning Air" Air Water Pollution Report July 16, 1990  (Newsletter)

               b.  Sacramento. CA ~ A Senate report, "Blueprint for Our Future:
                   Safeguarding California's  Environment" said the State could raise
                   fuel taxes and bridge tolls and even turn congested freeways into toll
                   roads to encourage motorists to abandon the State's increasingly
                   crowded highways  "State Studies Tolls,  Taxes for Drivers" San Jose
                   Mercury News January 23, 1991, p.  8B.
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                                                                           DRAFT
               c.  Kings Beach. CA ~ Lake Tahoe would face toll booths at Emerald
                   Bay under a plan being considered by a coalition of 12
                   organizations.  The Tahoe Transportation Coalition, which includes
                   environmentalists and representatives of the gaming and ski
                   industries, agreed a free basinwide transit system could ease the
                   problems. Coalition members said one way to pay for such a system
                   would be to set up toll booths at both sides of Emerald Bay during
                   the summer months.  The coalition also considered a 1/2 cent
                   basinwide sales tax to raise funds for transit services and a drive to
                   encourage private businesses to provide shuttle service to resort
                   areas.  'Toll Booth Recommended to Ease Tahoe Congestion"
                   Sacramento Bee Monday, July 15, 1991, p. B-3.

            4.  Fees for Single Occupancy Vehicles

               a.  South Coast. CA ~ Task Force suggests commuters pay fees for
                   driving alone during rush hour, forcing them to switch to mass
                   transportation -- the new Los Angeles County Blue Line light rail,
                   buses or carpool. Also suggests  prohibiting employers from
                   subsidizing employees' parking costs. "Regional, State, Local Briefs:
                   California" Urban Transport News July 26, 1990 (Newsletter)

            5.  Fees for Motorists Driving Long Distance

               a.  San Diego. CA ~ San Diego Association of Governments
                   considering charging motorists for driving long distances.  "Around
                   the States:  CALIFORNIA - Some San Diego motorists spoke
                   sharply against an emissions fee" Air Water Pollution Report
                   June 10, 1991 (Newsletter)

               b.  Salem. OR -- Under Senate Bill 1089, automobile owners would pay
                   a fee based on odometer readings and type of car.  Someone who
                   drives a fuel-efficient car about 15,000 miles a year would pay about
                   $150.  "Panel Reviews Dirty Air  Fees"  Oregonian  April 25, 1991,
                   p. D-4.

               c.  Los Angeles. CA - The AQMD agreed to proceed with a
                   requirement for local governments to enact air quality programs that
                   would shorten commutes. For instance, a city  could require new
                   housing to be near jobs and vice versa, or encourage development
                   near mass transit stations. "AQMD Approves  Changes to Region's
                   Clean Air Plan" Los Angeles Times July 13, 1991, p. A-l.
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               d.  Los Angeles. CA - AQMD plan contingency measures include:
                   Smog taxes on gasoline and diesel fuels; official odometer readings,
                   perhaps corresponding with smog checks, which would be used to
                   calculate a pollution fee based on mileage and the model year. A
                   1983 car, say the example in the proposed plan, could be assessed
                   $88.90 for 10,000 miles; smog charges in addition to regular rates at
                   parking lots; prohibiting lone drivers from entering the freeway
                   system during summers, the Los Angeles smog season; summertime
                   rationing of gasoline and diesel fuel; requiring work at home and
                   shutdowns of most government offices during Stage 1 smog alerts;
                   limiting the number of vehicles registered in the 4-county area.
                   "Officials Hope to Drive Up Costs of Solo Commuting" Los
                   Angeles Times  April 9, 1991, p. A-5.

            6.  Vehicle Buy-Back Programs

               a.  Los Angeles -- UNOCAL to purchase 7,000 pre-1971 automobiles
                   through automobile repurchase program SCRAP (South Coast
                   Recycled Auto Program).  UNOCAL also to offer free engine tune-
                   ups to owners or pre-1975 automobiles during the off-year of the
                   State's biennial inspection program at its UNOCAL Protech
                   Stations.  As third initiative, UNOCAL to fund a highway patrol to
                   reduce traffic tie-ups (six vans outfitted to jump-start  batteries,
                   change flat tires, provide air, water, and gasoline to get motorists off
                   the road to nearest service station) "UNOCAL Plans  Innovative
                   Emission Reduction Effort in Los Angeles" Environment Week.
                   May 10, 1990 (Newsletter)

               b.  San Francisco.  CA ~ Revenues from tolls, taxes, and  fees would go
                   toward mass transit and perhaps a plan to purchase and junk older,
                   more polluting vehicles. "San Francisco Commission  Drafts Strict
                   Measures for Cleaning Air" Air Water Pollution Report July 16,
                   1990 (Newsletter)

               c.  Los Angeles. CA ~ The latest SCAQMD smog-fighting plan suggests
                   buying and scrapping 250,000 junkers by 1996.  The AQMD
                   envisions a buyback foundation financed by corporate contributions.
                   One question is whether a large-scale buyback program could make
                   California "a magnet for junkers". People would bring them to sell
                   them to UNOCAL or to sell them to people who sell their cars to
                   UNOCAL.

                   From June through October of 1990, UNOCAL and Ford Motor
                   Co. bought more than 8,000 pre-1971 cars for $700 apiece for the
                   demonstration, a public-relations gesture.  Sellers had to  register
                   their cars in the 4-county areas under the AQMD's jurisdiction.


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                   Also, they needed to prove they had owned the cars for at least 6
                   months. The autos had to be driven to the downtown scrap where
                   transactions were consummated. "Junkers -- Targets in Smog War."
                   Los Angeles Times March 20,  1991, p. 1-A.

               d.  California —• Two new programs in California will buy and scrap
                   older cars.  In December  1989,  the State of California and the City
                   of Salinas reached an agreement under which a proposed
                   cogeneration facility would "mitigate environmental effects to the
                   level of insignificance" through  the buyback of older passenger cars
                   in the area.  Under the  agreement, the O'Brien cogeneration plant
                   will buy and scrap 120 vehicles  annually, if that many can be
                   acquired from the fleet  registered in the Monterey Bay air pollution
                   district, or 175 vehicles  annually, if vehicles registered in the San
                   Jose SMSA are included.  To the extent that actual emissions from
                   the  facility in a year vary from a total  of 169.3 tons/year, the
                   number of vehicles purchased will be multiplied by the ratio of the
                   sum of total emissions of VOC, NOX, and CO in tons to 169.3.

                   UNOCAL announced in April  1990 that it would buy and scrap up
                   to 7,000 pre-1971 model cars currently registered in the Los Angeles
                   area through a flat offer of $700 per vehicle.  The program is
                   intended to demonstrate one means of lessening air pollution in the
                   area.  Contributions by  Ford Motor Co. and local Ford dealers have
                   expanded the program by about 1,000 vehicles. UNOCAL expects
                   to complete  the program by mid-September 1990. Reducing
                   Emissions From Older Vehicles. Robert Anderson, American
                   Petroleum Institute, Research Study #053.  August 1990, p.  31.

            7.  Clean Vehicle Rebates Through Reduced State Sales Taxes

               a.  California - DRIVE+ (demand-based reduction in vehicle
                   efficiency plus improvements in fuel economy) is to give drivers who
                   buy new, efficient, clean vehicles rebates through reduced State sales
                   taxes. "Alternative Fuels: Pickens, Energy Group Push Incentives
                   for  Consumers Who Buy Clean Cars."  Energy Report. December
                   10,  1990 (Newsletter)

               b.  California — Reintroduced an auto-pollution tax to double the
                   State's usual 4.5% sales tax for  a car that pollutes a lot and  waive
                   the  tax on a low-pollution model. "The Greening of Detroit"
                   Business Week  April 8, 1991, p. 59.
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               c.  California ~ might require auto makers to withhold some models
                   from the California market to achieve higher overall fuel economy.
                   Or, more likely, a "fee-bate" plan where the State would charge a
                   fee to people who buy less fuel-efficient cars and give rebates to
                   those who buy fuel-stingy ones.  "Bold Designs, Exotic Fuels Seek  to
                   Curb Oil Appetite"  Los Angeles Times March 25, 1991, p. 1-A.
                                        t>
               d.  Washington State - To encourage the purchase of cleaner-running
                   cars, a $125 sales tax would be slapped on the worst polluters.
                   Covering about a quarter of all new-car sales, the list would include
                   most luxury cars, most light trucks, and a few economy models.
                   Also, motorists would pay an annual $2.50 fee with their vehicle
                   registration. "Who Would Get Hit the Hardest?"  Seattle Times
                   March 7, 1991, p. B2.

               e.  California. Massachusetts ~ The  California House and Senate in
                   1990 enacted a "Drive-Plus" initiative,  which  finances rebates for
                   relatively efficient and nonpolluting motor vehicles  by taxing the
                   poorer performers in the same vehicle classes (CA  Senate Bill No.
                   1905 1990). This sliding scale fee-rebate  system addresses emissions
                   of hydrocarbons, NOX, CO, and PM, in addition to CO2  Although
                   Drive-Plus was vetoed by outgoing California Governor George
                   Deukmejian, it is expected to be reintroduced in 1991.  "Statehouse
                   Effect Combats Greenhouse Effect" Cavanagh, Ralph C. and
                   Arthur H. Rosenfeld. The Journal of State Government. Vol. 63,  p.
                   95.

               f.  California — An interesting variant on the rebate approach is the
                   revenue-neutral "feebate," a self-financing mechanism that charges
                   fees to purchasers of inefficient products  and uses those funds to
                   provide rebates to purchasers of efficient products.  A feebate bill
                   for cars passed the California legislature in 1990 by a 7 to 1 margin
                   but was vetoed by outgoing Gov. Dukmejian. It proposed a 7% tax
                   (the going rate) for the average vehicle, zero tax for the most
                   efficient models, and a 13.5% tax for the  worst performers.  A
                   $20,000 gas guzzler would therefore cost an additional $1,300 under
                   this plan. The new governor, Pete Wilson, is said to support the
                   idea, and proponents are pushing for greater rewards and penalties
                   in the bill's next version.  Meanwhile,  Massachusetts legislature is
                   considering a similar measure. "How to Improve Energy Efficiency"
                   Shepard, Michael Issues in Science and Technology Summer 1991,
                   p. 90.
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            8.  Fee on High Emission Fuels

               a.  San Diego. CA -- San Diego Association of Governments is
                   considering a polluting fuels fee on fuel distributors to discourage
                   use of high emission fuels.  "Around the States:  CALIFORNIA —
                   Some San Diego Motorists  Spoke Sharply Against an Emissions
                   Fee"  Air Water Pollution Report June 10, 1991 (Newsletter)

            9.  Congestion Pricing

               a.  San Francisco. CA - With "congestion pricing," cars might be fit
                   with electric transponders and the drivers hit with a fee every time
                   they pass key congestion points.  "A Push To Cut Traffic 35% in 7
                   Years"  San Francisco Chronicle January 16, 1991, p. Al.

               b.  Los Angeles.  CA — The Southern California Association of
                   Governments (SCAG) has called for establishing a pilot project with
                   roadway congestion  fees.  Most  likely, the experiment will be
                   conducted on a 10-mile stretch of the 91 Freeway in Orange County,
                   where a private company plans to open 4 express lanes in 1994
                   alongside the existing  8 public lanes. Officials envision a $2 toll
                   during rush hours and $1 toll at other times. Car pools, at least for
                   the first 2 years, would ride free.  "Officials Hope to Drive Up Costs
                   of Solo  Commuting" Los Angeles Times  April  9, 1991, p. A-l.

               c.  Singapore.  In Singapore, road pricing (which made its debut in
                   1975) consisted of buying a special license  that was required to drive
                   in the downtown area. But with new Intelligent Vehicle Highway
                   Systems (IVHS) technology, the technique is becoming electronically
                   monitored and more sophisticated.  "Road Pricing Can Increase
                   Mass Transit But Risks Opposition From Motorists"  Urban
                   Transport News.  March 21, 1991, p. 42. (Newsletter)

               d.  Cambridge. England.  City officials are considering a road pricing
                   strategy that might take effect in 1996. Under the Cambridge plan,
                   motorists would pay for becoming involved in traffic congestion.

                   Each car that travels into downtown Cambridge would be required
                   to have  an electronic meter.  Roadside beacons  would automatically
                   switch on the meters when the cars entered the  city and switch  the
                   meters off as the cars left.  While the cars  were  in free flowing
                   traffic, the meters would not register a charge.  But if the vehicles
                   hit congestion, the meters would start to clock up a charge for as
                   long as  the motorists were stationary. The charge would start when
                   the vehicles made 4 stops in 500 meters.
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                                                                            DRAFT
      *            Motorists would not be able to operate their cars without the meters
                   running. They would have to buy prepaid electronic cards to put
                   into the meters.  If the cards ran out of credit, the next time the
                   motorists shut off their engines for more than 30 seconds, the
                   engines could not be restarted. "Road Pricing Can Increase Mass
                   Transit But Risks Opposition From Motorists" Urban Transport
                   News. March 21, 1991, p. 42.  (Newsletter)

               e.  Los Angeles. CA.  In the U.S., the closest thing to road pricing is
                   the Los Angeles area's Regulation XV.  Major employers are
                   required to increase ridesharing by employees or face stiff fines.
                   But another Southern California proposal  would require motorists to
                   buy special passes to use the freeways. Motorists who rideshare
                   would not need passes. "Road Pricing Can Increase Mass Transit
                   But Risks Opposition From Motorists" Urban Transport News.
                   March 21,  1991, p. 42. (Newsletter)

               f.  California - In late February, the University of California
                   Transportation Center (UCTC) and a group of invited participants
                   from government and industry met in San Diego for a 2-day
                   workshop on congestion pricing. Congestion pricing seeks  to
                   alleviate traffic problems by charging motorists for their contribution
                   to congestion-raising and lowering transportation fees according to
                   levels of congestion at specific times of day and at specific locations.
                   Several workshop sessions centered around pricing experiments to
                   take place on privately owned-and-operated toll roads.

                   Developers of some privately built highway projects are considering
                   applying variable tolls-prices that would vary as levels of congestion
                   vary, thus offering motorists an incentive to leave a crowded
                   highway and ride the congestion-free toll road, or to leave their cars
                   at home and ride public transit.  "UCTC Contributes to Education
                   and Research" ITE Journal February 1991, pp. 2-3.

            10. Parking Fees at Shopping Centers

               a.  California - Earlier proposals called for harsher $3-a-day fees, not
                   only at work, but at malls and movie theaters, and on streets.
                   "Employee Parking Fee Plan Shelved"  San Jose Mercury News
                   February 28, 1991, p.  1-C.

               b.  Los Angeles. CA - The 1991 AQMD plan will require employers  of
                   staffs of at least 50  to expand ride-sharing. Students ar colleges and
                   possibly at high schools also will be targets of ride-sharing programs.
                   Shopping Centers, stadiums, concert halls  and other so-called "event
                   centers' also will be required to come up with similar programs to


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                   reduce traffic (such as imposing limits on free parking at shopping
                   centers).  "AQMD Approves Changes to Region's Clean Air Plan"
                   Los Angeles Times  July 13, 1991, p. A-l.

               c.  Los Angeles. CA ~ One rule, anticipated for AQMD consideration
                   by 1995, would require facilities such as stadiums, concert halls,
                   shopping malls, and civic auditoriums to develop programs to reduce
                   the number of cars they attract. Such as parking lot fees and shuttle
                   buses.  "40 New Rules Proposed to Clean Southland Air" Los
                   Angeles Times  February 1, 1991, p. A-5.

            11. Pay As You Drive Automobile Insurance

               a.  Pay As You Drive (PAYD) is a proposal for automobile insurance
                   which charges for insurance at the gas pump, raising the apparent
                   price of gasoline by about Si/gallon.  This proposal would reduce
                   the gasoline use of existing cars by 10% in the short term and by up
                   to 30% in the long term, improve the market for fuel-efficient cars,
                   and solve the problem of uninsured motorists, who add about 25%
                   to premiums.

                   Although the risk of an auto accident is proportional to annual
                   miles driven, U. S. insurance premiums  are only about 15% less for
                   low or zero-mileage drivers.  PAYD benefits these drivers because
                   premiums are proportional to actual miles driven.  "Statehouse
                   Effect Combats Greenhouse Effect"  Cavanagh, Ralph C. and
                   Arthur H. Rosenfeld.  The Journal of State Government. Vol. 63, p.
                   95.

               b.  California ~ A fuel surcharge of 50 cents/gallon would cost the
                   average California motorists $300/yr.  But if your insurance bill
                   were cut by more than that, you might find very attractive the idea
                   of paying for auto insurance at the pump.

                   Under the "Pay as You Drive" proposal  recently put to the
                   California Energy Commission by energy expert Mohamed El-
                   Gassier, the new fuel surcharge collected by gas stations would be
                   turned over to a new fund created within the Franchise Tax Board.
                   This fund would take a small amount off the top to cover its costs of
                   operation and pay the rest, on the basis of a fixed amount per
                   insured vehicle, over to everyone's individual auto insurer.  There
                   would be no additional matching.  The insurers would charge extra
                   for additional insurance coverage.
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                   El-Grassier predicts that by having the driving public pay for auto
                   insurance as they drive, people would modify their behavior. More
                   commuters would carpool or take public transportation. To make
                   sure the insurance program is fair for both drivers with bad records
                   and novice drivers, the new State fund could be told to collect some
                   of its revenues from additional charges on drivers' license based on
                   one's driving experience and recent record of moving violation
                   citations. Also, some of the plan's revenue could be collected with
                   the  annual registration of the vehicle-the amount paid based upon
                   the  safety record of the model.  "Pay-At-The-Pump Auto
                   Insurance?"  Sacramento Bee June 9, 1991, p. F-l.

       C.   Carpooling/Ride Sharing

            1.  Carpooling/Ridesharing Programs

               a.  San Mateo County. CA. An unusual public/private partnership has
                   developed among 6 cities which have  formed a joint powers
                   authority (JPA) to support mutually adopted transportation systems
                   management (TSM) ordinances.  Following formation of the JAP,
                   the  cities subcontracted with the San Mateo County Transit District
                   to assist in overseeing the administration of the effort.

                   The intercity TSM ordinances require the participation of every
                   employer in  the 6 cities, as well as the sponsor of every multi-tenant,
                   non-residential building or group of buildings under common
                   ownership. The 4-year objective of these ordinances is to achieve a
                   25% employee participation rate in alternatives to the use of single-
                   occupant vehicles for commuting during peak traffic hours.

                   The authority is self-funded through a voter-approved 1/2-cent sales
                   tax passed in 1988 to fund transportation improvements. In fact, the
                   San Mateo County Transportation Authority, which determines
                   funding priorities and  investment policies for the accumulated sales
                   tax revenue, has stipulated that a city in the county may receive
                   funds only if it has enacted a TSM ordinance. "San Mateo  Cities
                   Fight Traffic Congestion" American City & County March 1991,
                   p. 26.

               b.  Connecticut  ~ Connecticut's ride-sharing program is cutting CO2
                   emissions by about 83,000 tons/yr. "Global Warming~Too Hot to
                   Handle"  State Government News August 1991, p. 10.
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               c.   Walnut Creek. CA -- In 1987, the City Council adopted Walnut
                   Creek's original employee commute incentive program. It offered
                   employees $15 transit discounts and a drawing for lunch for 2 to
                   those using a commute alternative.  Little result. In January 1990,
                   the Council approved a plan which offered a new set of employee
                   benefits to those employees using commute alternatives. In a
                   3-pronged approach,  employees who use  a commute alternative
                   (walking, biking, transit riding, carpooling, or van pooling) can win
                   money, receive a transit discount, and earn time  off.
                   Within each 10-day pay period, an employee who uses an alternative
                   can earn  commute credit (a form has been designed to record their
                   activity).  If an employee uses an alternative at least 3 times/week,
                   he/she automatically earns a 1/2 hour of time off.  An employee
                   using an alternative at least once in 2 weeks can enter a drawing for
                   a $25/day award for  each day he/she used an alternative  (up to
                   $250 for a 10-day pay period). Discounted transit passes are also
                   sold  to employees: one per month at the maximum allowable
                   Federal limit of $15.

                   An additional inducement is a Guaranteed Ride Home program.
                   This ensures employees will be able to use a city vehicle or have
                   someone drive them. This policy provides security to employees
                   who  might be stranded without a car.

                   Citywide, employers are averaging a 15% participation rate with
                   their employees, while city employees are maintaining a 26%
                   participation rate.  "Changing the Drive Alone Habit"
                   Grant, Joanna R. Western  City  June 1991, pp.  13-14.

               d.  Phoenix. AZ - The 1988 Arizona Omnibus Air Quality Bill requires
                   companies with 100 or more employees at any site to reduce the
                   number of miles they drive solo  in their cars by 5% during each of
                   the next 2 years.  This Travel Reduction  Program currently affects
                   477 Valley employers at 727 work sites with some 380,000
                   employees, nearly 1/3 the valley's work force.

                   Some of the programs Valley businesses  are using to help  them
                   meet their goal:

                   •  One law firm is paying 100%  of the cost of bus passes for
                      employees who ride the bus.

                   •  Sundstrand Aviation Operations offers rent subsidies to
                      employees in nearby apartments.
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                   • At the Chandler Regional Hospital, 33 full-time employees have
                     agreed to work 3 12-hour days instead of the usual 5 8-hour days.
                     5 more are working 10-hour days.

                   • The Sunburst Resort in Scottsdale is providing guaranteed
                     transportation for employees who car pool but might need a ride
                     home at  odd times for emergencies.

                   • Motoral  Government Electronics in Scottsdale is making showers
                     available to employees who want to bike to work.

                   The voluntary "Don't Drive One in Five" program, and a tightened
                   vehicle emissions check program also seem to have helped.  In
                   addition, by law, all gasoline dispensed in Maricopa County from
                   Oct.  1 to  March 31 must contain additives  to make the fuel burn
                   cleaner -- MTBE or alcohol.

                   Checks at neighborhood sites show that since Oct. 1 there has been
                   only  1 day in the valley (in mid-Dec.) in which the concentration of
                   CO exceeded  Federal standards. That's down from 3 such days last
                   year; and 11 days the year before that.  "Thumbs Up For Car
                   Pooling-Valley Air Improves as Employers Offer Workers
                   Incentives"  Phoenix Gazette Thursday, March 21, 1991,.p. D-10.

               e.  San Mateo  County. CA ~ The San Mateo County Transit District
                   (SamTrans) recently introduced an employer discount pass program.
                   The program simplifies the purchasing and subsidizing of SamTrans
                   monthly passes to area employees.  Employers who join the program
                   can sell the SamTrans passes to their employees for a 5% discount.
                   "San  Mateo Introduces Employer Discount Pass Program" Urban
                   Transport News  May 2, 1991, p. 72.  (Newsletter)

               f.   Philadelphia. PA - Thousands of mass transit riders in the
                   Philadelphia area could be eligible for a $15/month tax-free subsidy
                   to help pay for their use of public transportation under a program
                   announced  this month by local officials.  Corporations in New
                   Jersey, Pennsylvania, and Delaware are being asked to give their
                   workers the subsidy under terms of the  1984 Federal Deficit
                   Reduction Act and the Tax Reform Act of 1986, which allow tax-
                   free fringe benefits.  Government and transit officials describe it as
                   a major new effort to encourage use of mass  transit.

                   Under the Commuter Benefit Program, participating area
                   companies will give employees tax-free transportation subsidies of
                   up to $15/month, issued in the form of vouchers called
                   TransitCheks.  The vouchers can be bought from the Delaware
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                   Valley Regional Planning Commission, the group that developed the
                   plan.  The vouchers can be used on SEPTA, NJ Transit,Amtrak,
                   PATCO, and all transit operators in Delaware.

                   Only 1 company, Keystone State Life Insurance, has signed up for
                   the program. But 55  other firms have expressed an interest,
                   including the PA Dept. of Transportation. "Marketing Moves:
                   Transitchek to Give Philadelphia Commuters Tax-Free Subsidy"
                   Urban Transport News June 27, 1991, p. 04.  (Newsletter)

               g.  Los Angeles. CA -- The Southern California Rapid Transit District
                   (RTD) is offering a computerized planning service  that gives drivers
                   personalized schedules for taking the bus between destinations.
                   Employers can pay the RTD $150 for a computer disc that is used
                   to plot the schedules.  The commuters list their company location,
                   home address, and the times that they travel to and from work.
                   RTD customers service representatives then plan a route for each
                   employees. Within 10 days, the commuter receives a schedule,
                   which includes an alternate route, the estimated trip time, and the
                   cost. So far, 20 companies have signed up for the program's
                   customized schedules at a cost of 48 cents per employee.

                   The RTD plans to expand the program soon to include a telephone
                   service.  Callers would be able to receive printouts  of schedules
                   instantly at their companies. Other plans call for a bilingual version
                   of the service and a voice-activated computer calling system for fast
                   information.  "L.A. Offers Customized Route Schedules on
                   Computer Disc for RTD Passengers"  Urban Transport News
                   February 21, 1991, p.  38.  (Newsletter)

            2.  Businesses Required to Submit Trip Reduction Plans

               a.  South Coast  - SCAQMD now requires companies with  100 or more
                   employees to encourage alternative commuting through special
                   parking  places or lower parking fees for car pools.  "Southern
                   California Clean-Air Agency is Criticized; Environmentalists Assail
                   Proposed Delay But Union Leaders Call Plan Too  Hard on Poor"
                   The Washington Post. May 1, 1991. Section A, p. 20.

               b.  South Coast  ~ SCAQMD draft update of its 1989 plan has 40 new
                   control measures.  One being an extension of the district's rideshare
                   incentive program~from firms with  100 employees or more to those
                   with 50 workers at a site.  The update also proposes many market
                   incentives aimed at increasing the flexibility of air pollution
                   programs, with a "trading  market" for air pollution permits  and new
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                   emission fees for high-polluting automotive engines among them.
                   "California" Air Water Pollution Report February 11, 1991
                   (Newsletter)

               c.   South Coast ~  SCAQMD will make employers responsible to
                   encourage their employees to carpool, ride share, and ride buses to
                   and from work to reduce single occupancy vehicles (Regulation
                   XV).  Each employer must submit a trip reduction plan called a
                   "transportation demand management" (TDM) program for achieving
                   average vehicle ridership (AVR) targets of 1.75 per vehicle for
                   central Los Angeles, 1.5 for remainder of Los Angeles-Orange-
                   Inland Empire metropolitan area, and 1.3  for areas beyond
                   metropolitan limit.

                   Suggested methods include:  direct financial incentives for
                   ridesharing; establish carpool, buspool, or vanpool programs; partial
                   or full subsidy of parking for ridesharing employees; allowance for
                   employees to use company-owned fleet vehicles for ridesharing
                   purposes; preferential parking for vehicles used for ridesharing;
                   facility improvements that provide preferential access/egress  for
                   ridesharing employees;  active use of computerized ridesharing
                   matching services such as  Commuter Computer; compressed  work
                   weeks (4 days or 10-hour work days) or other flexible work hours
                   that facilitate employee ridesharing; "telecommuting" — working  at
                   home.

                   According to a city ordinance, Los Angeles employers who have 100
                   or more employees and offer free or subsidized parking to
                   employees must offer a $15/month transit subsidy to each employee
                   to use in commuting. The $15 subsidy may be provided either as
                   transit passes, tickets or bus tokens, or tickets in the amount  of
                   $15/month.  The ordinance imposes a penalty of $100/day for each
                   separate violation of the ordinance. Monies collected as penalties
                   are to be placed in an employee transit subsidy account.   Freedman,
                   Jeffrey C.  "Commuting and Polluting" Los  Angeles Lawyer. February
                   1990, pp. 11-13.

               d.  Thousand Oaks. CA ~ One attorney warned about the broadened
                   financial liabilities employers will face with worker's compensation .
                   If companies actively participated in setting up car pools and van
                   pools, injuries to workers coming or going from work will most
                   likely  be covered under workers' compensation.  Monthly raffles of
                   prizes as carpool incentives might be gambling.  Employers also
                   cannot fine employees or reduce their salaries if workers choose not
                   to ride share. "Employers Discuss Commuting" Daily News of Los
                   Angeles February 22, 1991, p. T-l.
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               e.  Seattle. WA - A bill passed the House that would require public
                   and private employers — eventually those with as few as 50
                   employees -- to devise ways to reduce single-occupancy vehicle trips
                   by their workers.  Reducing auto trips might involve incentives such
                   as subsidized transit passes, assistance in forming car pools,
                   employer-sponsored van pools, and stiff fees for parking g that is
                   now inexpensive or free.

                   A great idea on paper will soon be a reality at the University of
                   Washington in the form of a U-PASS, a plan to get students, faculty
                   members, and  staff people out of their cars. Instead of commuters
                   driving alone, an inexpensive U-PASS will invite them to explore
                   cheaper,  more efficient travel alternatives.  "Kicking the Habit
                   Regional Air Quality is Driven to Distraction"  Seattle Times
                   March 24, 1991, p. A-18.

               t  Los Angeles. CA ~ If approved, SCAG will be asking local
                   governments to take these steps by January 1:  eliminate free
                   parking for employers of 100 or more and replace  the benefit with a
                   transportation  allowance. An ordinance covering employers or 25 or
                   more should be passed by Jan. 1, 1994; increase daytime parking
                   fees at metered spaces  and public lots; establish parking surcharges
                   for single-occupant vehicles or discounts for car pools; require
                   employer-sponsored preferential parking for car or van pools.

                   A bill has been introduced to phase out deducibility of employee
                   parking as a business expense. The bill also exempts from State
                   income tax any money paid to employees to replace free parking.
                   "Officials Hope to Drive Up Costs of Solo Commuting" Los
                   Angeles Times April 9, 1991, p.  A-5.

               g.  Los Angeles. CA ~ Ride-sharing may unfairly affect some poor and
                   minority  commuters. Los Angeles County imposed high parking
                   fees to discourage workers from driving solo.  Since last October,
                   fees averaging $50 a month have been deducted from workers'
                   paychecks.  $50 is not the same to somebody who's making $40,000
                   a year as it is to someone making $13,000.   The board was asked to
                   set up a grievance procedure so workers can appeal plans they
                   believe are  discriminatory.  "Smog-Fighters Concede Ride-Sharing
                   is Unfair to Some" Los Angeles  Times  March 2,  1991, p. A-31.
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            3.  Examples of Employees Incentives

               a.  Current law allows employers to subsidize their workers' parking as
                   a 100 percent nontaxable fringe benefit, no matter how high the
                   cost.  Transit subsidies, however, are limited to $15/month as an
                   untaxed benefit.  Any subsidy exceeding $15/month is entirely
                   taxable as income to the employee and loses its deducibility for the
                   employer. The inequity is most unfair to lower-income workers.
                   Endorsed a bill to increase the tax-free benefit for transit passes to
                   $60. 'Tax Code Unfairly Favors Parking Over Transit as Employee
                   Fringe Benefit, House Told"  Urban Transport News March 8, 1990
                   (Newsletter)

               b.  Lancaster. CA - Lancaster's  plan offers an $18-a-month subsidy for
                   bus passes, gives workers $75 a year for walking or jogging shoes,
                   $75 to bicycle riders and 8 cents a mile for every car-pool driver
                   with one passenger and 2 cents for each additional passenger. To
                   qualify, workers must reduce the car trips to work by at least half.
                   Since posters have been put up and fliers sent out, 20 of the 148 city
                   employees have expressed interest.  "Plan Tries to Clear the Air"
                   Daily News of Los Angeles  April 29, 1991, p-AVl.

               c.  Palmdale. CA  -  Palmdale's plan offers $50 a year for walking shoes,
                   preferential parking places for car poolers,  $15 a month for bus
                   passes, and $10 a month for car poolers toward a car-related item or
                   service such as on oil change or brake work. Both cities will have
                   monitors do periodic spot checks of the City Hall parking lots and
                   surrounding areas to make sure employees  are car pooling,  walking,
                   biking, or taking public transportation "Plan Tries to Clear the Air"
                   Daily News of Los Angeles  April 29, 1991, p-AVl.

               d.  Glendale. AZ  —  One hotel offers valet parking to workers who
                   come to work in a car pool.  One company struck a deal with a
                   nearby apartment complex to offer lower rents for employees who
                   travel to work  by bus.  Another business provides shaded parking
                   spaces for those who commute in a car pool.  That is no small
                   benefit in summer months in the desert.  "Town Uses Stolen Bikes
                   in Fight Against  Smog" Daily News of Los Angeles  May 19, 1991,
                   p. U3.

               e.  Glendale. CA ~ At the J.C. Penney store in Glendale, employees
                   who walk to work can  qualify for free walking shoes, bus riders can
                   earn free bus passes, and car poolers  can enter a drawing for $100
                   J.C. Penney gift certificate. "Slow Ride Major Deadline for Area's
                   Carpool Program Brings Lackluster Response  from Businesses"
                   Daily News of Los Angeles  May 27, 1991 p. B-l.


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               f.   Los Angeles. CA -- Atlantic Richfield Co. offers a $100 a month
                   transportation allowance, hosts introductory meetings over a free
                   lunch, and gives away T-shirts and mugs.  "Slow Ride Major
                   Deadline for Area's Carpool Program Brings Lackluster Response
                   from Businesses" Daily News of Los Angeles May 27,  1991 p. B-l.

               g.  Lancaster. CA - Some of the 1,400 Antelope Valley Hospital
                   Medical Center employees can walk, bike, or car pool their way to
                   Hawaii under a plan proposed to reduce air pollution.  The hospital
                   is offering the annual, free week-long trip to the Aloha  State as an
                   incentive to participate in a $19,000 plan encouraging workers to
                   shift from their solitary drives to work to less-polluting modes of
                   transport such as car pooling, riding bikes or walking. Other
                   incentives being offered by the hospital include a 4-day  cruise to
                   Mexico, gift certificates to mall shops, dinners at local restaurants,
                   movie tickets, guaranteed rides home and preferential parking
                   places.  "A.V. Hospital Board OKs Ride-Sharing Incentives"  Daily
                   News of Los Angeles May  28, 1991, p. AVI.

               h.  Monrovia. CA — The McDonnell Douglas' electronic branch  has
                   eliminated reserved parking spaces for executives and given them to
                   those who ride-share. Group Seeks Voice for Employees in Firms'
                   Traffic Reduction Plans"  San Jose News March 2, 1991  p. 2E

               i.   California -- Capital  Records in Hollywood has responded to the
                   rule by offering its workers  free compact discuss,  tapes,  sweatshirt,
                   denim jackets, movie passes,, and other merchandise if they share
                   rides and by subsidizing the cost of monthly bus passes.  The result
                   is that nearly 400 workers now average 1.25 persons per car.

                   At Chiat/Day Advertising in Venice, incentives for car pooling
                   include tickets to Los Angeles  Dodgers baseball games  and Los
                   Angeles Kings hockey games.  The firm has also brought into the
                   workplace dry cleaning, shoe repair, grocery  and other services so
                   people will not need their cars to do errands.

                   Other companies give workers who participate in car pools parking
                   places closer to the office and  the right to use express lanes at the
                   company cafeteria.  "Environmental Protection Smog, Drought
                   Force New Remedies in California"  Boston  Globe February 18,
                   1991, p. 1.

               j.   Los Angeles. CA ~ The AQMD revised smog reduction plan
                   includes an option that would give employees extra time off for car-
                   pooling or using an alternative means of transportation  to get to 3
                   city sites -- City Hall, the corporate yard, or the police department.
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                   City officials envision adding a line or box to employees' time sheets
                   to determine the method used to get to work. Administrators plan
                   to assign points to various methods and eventually award days off
                   based on accumulated points. "Anti-Smog Proposal OKd for City
                   Staff Los Angeles Times  January 22, 1991.

               k.  Long Island. NY - Every employer of more than 100 people must
                   reduce the number of cars  coming into its parking lot - partly by
                   getting 25 percent more people in cars or vans. The rule applies to
                   both public and private entities and would affect more than 1,300
                   work sites in Long Island.  Employers would have until 1994 to
                   submit a plan and until 1996 to comply.  Planners foresee new
                   measures: cash bonuses paid by the businesses and special parking
                   places for car poolers, or new parking charges for noncar poolers.
                   Adopting flexible work shifts, including 4-day work weeks,
                   "telecommuting" "Car Pools Ahead New Clean Air Act Provides
                   For 'Gun-to-Head'  Plans to Reduce Air Pollution"  Newsday March
                   25,  1991, p. 5.

               1.   Simi Valley. CA ~ Has opted for financial incentives to persuade
                   workers to car-pool, or use alternative means of transportation.
                   Under the Simi Valley plan, employees will  receive $3 for every day
                   that they avoid solo drives.  "Oxnard Assails Smog Rules in Delaying
                   a 4-Day Work Week Plan"  Los Angeles Times July 10, 1991,
                   p. 1-B.

               m.  Los Angeles. CA ~ Under  the traffic reduction program scheduled
                   to go into effect next January, employers will be required to
                   subsidize their employees' transit fares or car-pool and van-pool
                   costs. Employees who walk or bicycle to work also will be
                   reimbursed.  If the enticements of subsidies  fail to do the job by
                   1994, employees who continue to drive alone to work will face
                   parking fees starting at $30/month and rising to $100/month by
                   1997.

                   About 12,000 businesses will be placed under the district's program
                   within the next 4 years.  Employers of 50 or more workers will
                   implement the program next January; firms employing 25 to 49
                   workers will start in January 1993; firms with 11 to 24 employees
                   will begin in January 1994.  Each firm will have 2 years to meet its
                   goals before penalties and parking fees are imposed. "Businesses
                   Balk at Implementing Proposed Traffic Reduction Plan" Los
                   Angeles Times  June 27, 1991, p. B-2.
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               n.  San Diego. CA -- After complaints from businesses during a series
                   of hearings on the regulations, the proposed fees were delayed until
                   1994 and modified so that employees of firms nearer to their traffic-
                   reduction goals will pay lower fees.  The proposed rules still call for
                   mandatory employer subsidies for employees' transit fees, or car
                   pool and van pool costs, as well as reimbursements for employees
                   who walk or bicycle to work.  "Emphasis Shifts on Clean-Air Rules"
                   Los Angles Times July 31, 1991, p. 2-B.

               o.  Los Angeles. CA ~ If approved, SCAG will be asking local
                   governments to take these steps by January 1:  eliminate free
                   parking for employers of 100  or more and replace the benefit with  a
                   transportation allowance.  An ordinance covering employers or 25 or
                   more should be passed by Jan. 1,  1994.; increase daytime parking
                   fees at metered spaces and public lots; establish parking surcharges
                   for single-occupant vehicles or discounts for car pools; require
                   employer-sponsored preferential parking for car or van pools.

                   A bill has been introduced to phase out  deducibility of employee
                   parking as a business expense. The bill also exempts from State
                   income tax any money paid to employees to replace free parking.
                   "Officials Hope to Drive Up Costs of Solo Commuting" Los
                   Angeles Times April 9, 1991, p. A-5.

               p.  Washington State ~ The giant Boeing Aircraft is offering all of its
                   103,000 employees in 8 locations in the Seattle area a $15  subsidy is
                   they buy a bus or van pool pass on Seattle metro.  It's part of the
                   company's effort to lure more people out of their cars and increase
                   group ridership by at least 15%.  About 300 Seattle-area businesses
                   subsidize employee's bus passes.  "Regional, State, Local Briefs"
                   Urban Transport News January 10, 1991, p. 214.  (Newsletter)

               q.. Bellevue. WA ~ Metro transit officials enlisted the help of area
                   employers in a campaign that started last month to promote
                   ridesharing by commuters.  The campaign is called Rideshare for
                   Clean Air and is targeted primarily  at people who work in the fast
                   growing Interstate 90 Eastgate corridor.  Participating employers
                   agree to register and track all ridesharers in their companies.  The
                   workers register with the employers after 1 month of ridesharing
                   and turn in monthly tracking reports. For each  month of
                   ridesharing by an employee, the employer agrees either to give the
                   worker a reward or to make a donation to an environmental cause.
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                   Every 3 months, Metro plans to draw names from a pool of
                   registered ridesharers.  The winners receive dinners, weekend trips
                   and other donated prizes.  "Marketing Moves:  Bellevue Uses
                   Lottery as Incentive to Rideshare"  Urban Transport News
                   February 7,  1991, p. 24. (Newsletter)

            4.  Businesses Charging for Employee Parking

               a.  San Francisco. CA - San Francisco Commission proposal includes
                   charging employees a $75/month parking fee and employer-
                   subsidized car and van pools. Plan also calls for cleaner-burning
                   vehicle fuels and special traffic signals and other considerations for
                   commuters on bicycles.  "San Francisco Commission Drafts Strict
                   Measures for Cleaning Air" Air Water Pollution Report July 16,
                   1990 (Newsletter)

               b.  San Diego. CA ~ San Diego County's Air Pollution Control District
                   proposal to  charge employees for otherwise free parking to increase
                   average 1.2  person/vehicle ridership to 1.5 during rush hours.
                   Annual graduated fees (to defray expense of reviewing employee
                   plans) to be based on company's success in increasing ride-sharing
                   with a roll-back in fees as  employers near their ride-share goals.
                   "San Diego County Air Pollution Control District has Suggested
                   Relaxing Proposed Regulations" State Environment Report  July 10,
                   1991 (Newsletter)

               c.  San Diego. CA ~ The Air Pollution Control District is proposing
                   that businesses that fail to meet ridership targets through increased
                   car-pooling and public transit could be  forced to eliminate free
                   parking or parking subsidies to their workers.  Starting in 1994,
                   those employers could be required to charge workers $50/month to
                   park even in company lots and by the year 2000, as much as  $100.
                   Companies would have to pick up the total cost of  workers' bus,
                   trolley, or other transit expenses.  "Concerns Cross  County Borders"
                   Los Angeles Times April 28,  1991 p. A-45.

               d.  San Diego. CA ~  Under the proposal, businesses that fail to meet
                   ridership targets aimed at  reducing drive-alone commuters through
                   increased use of car-pooling and public transit  could be forced to
                   eliminate free parking or parking subsidies to their employees.
                   Starting in 1994, such businesses could be required to charge
                   employees $50 a month to park even in company-owned lots where
                   parking is now free, as well as pay half of other workers' transit
                   passes.  Arguments against the plan say that it  would impose costly
                   paperwork requirements on businesses. The plan would permit
                   exemptions  for certain businesses or employee  groups within


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                   individual companies whose unusual work hours would make car-
                   pooling or even mass transit impractical.  In order for those parking
                   fees to serve as an effective deterrent to one-passenger cars, the
                   regulations would require that the cost be paid by drivers
                   themselves, not by their employers.  However, county administrators
                   concede that it could be difficult to verify whether, for instance,
                   companies might simply increase workers' salaries to compensate for
                   the parking fees. "Free Parking for Workers May Vanish"  Los
                   Angeles Times  March 14, 1991, p. B-l.

               e.  San Diego. CA ~ The most controversial element of the  San Diego
                   San Diego air plan is one that would eliminate free parking and cost
                   employees no less than $50/month if they drive to work alone.  Two
                   years into the program, the parking fee would jump to $100/month
                   if employers failed to encourage a fraction of their employees to
                   car-pool and ride public transportation.  The plan would also
                   require employers to provide a monthly public transit subsidy equal
                   to 50% of the transit fare. The subsidy could increase from $40 to
                   $60 in 1991-92 and to $100 in the year 2000. "Clean-Air Proposal
                   Results in Show of Discontent,  Anger" Los Angeles Times  May 2,
                   1991, p. B-l.

               f.   San Diego. CA ~ Originally, the APCD plan called for mandatory
                   parking fees to be levied on all solo commuters by their employers
                   when the program goes into effect in 1992.  Those employee parking
                   fees, ranging from $30 to  $100  a month have been delayed until
                   1994 and have been modified so that employees of firms closer to
                   their traffic-reduction goals will pay lower fees.  One downtown
                   bank has already surpassed its goal of getting employees off the
                   road simply by subsidizing the cost of their employees' bus and
                   trolley passes.  "Air Panel Drops Fee Plan to Give Firms a Chance
                   to Clean Up Acts"  June 25, 1991, p. B-l.  "Air Panel Drops Fee
                   Plan to Give Firms a Chance to Clean Up Acts" Los Angles Times
                   June 25, 1991, p. B-l.

            5.  Tax Breaks for Employers That Encourage Commuting

               a.  A new bill introduced in Congress last week would give employers a
                   tax break if they provide subsidies for workers who use mass transit.
                   The bill, H.R.  1442,  was introduced by Rep. Thomas Foglietta (D-
                   Penn). It would change the tax laws to make mass transit subsidies
                   treated as a fringe benefit for workers, which could be deducted
                   from the employers' taxes. "Tax Break Proposed for Transit
                   Subsidies" Urban Transport News.  March 21, 1991.,  p. 42.
                   (Newsletter)
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               b.  New Jersey -- New Jersey's Gov. Jim Florio this month called for a
                   change in the Federal Tax Code to allow employers a bigger
                   deduction for subsidizing employees who use mass transit. Florio
                   said it was unfair that under Federal tax laws, employers can give
                   tax-free parking benefits to their employees who drive, but only a
                   $15/month tax-free subsidy to employees who buy monthly bus or
                   rail tickets. Florio said he is supporting legislation in Congress to
                   allow companies to offer monthly subsidies of at least $60/month to
                   employees who use mass transit or vanpools to get to work.  "New
                   Jersey Governor Proposes Subsidy for Commuters to Use Mass
                   Transit" Urban Transport News May 2, 1991, p. 68.

            6.  Telecommuting

               a.  Los Angeles County. CA ~ For the past 2 years, employees of the
                   country's first county administered telecommuting program in the
                   office of contract monitoring have been telecommuting 4.5
                   days/week. Approximately 5-1/2 million people in the U.S.
                   telecommute with 240,000 workers coming from the public sector.
                   The program, which began 2 years ago, now has 1,700 workers and
                   is composed of employees with a broad range of job skills. About
                   50% are computer related, and productivity has increased by 20%.
                   The average participant telecommutes 2 days/week.
                   Telecommuting Trends Rising"  PA Times  September 1, 1991, p. 1.

               b.  United States ~ The Federal Government began a program  in July
                   1990, which has 12 participating agencies and 400 telecommuters.
                   Employer benefits include: increased productivity, reduced cost of
                   office space, increasing staff without adding space, reduced
                   absenteeism, and a reduced number of commuting trips.
                   'Telecommuting Trends Rising"  PA Times  September 1, 1991, p. 1.

               c.  California. Washington. Hawaii, and Arizona — Telecommuting
                   allows people to work at home-based or satellite offices instead of
                   commuting every day to work. In the West, California, Washington,
                   Hawaii, Arizona, and private companies are launching
                   telecommuting demonstration projects.  Larson, Douglas  C.
                   "Transportation:  America's Energy Achilles' Heel" The  Council of
                   State Governments, p.  89.

               d.  Southern California — There  are 2 main forms of telecommuting:
                   1) Working from home and 2) Working  at a regional telework
                   center. A regional center can be anything from a neighborhood
                   storefront office with a few telecommuters to a large office building
                   with hundreds of telecommuters.  The average amount of work time
                   spent telecommuting was 6.5  days/ month in 1989. The number of


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                   days per month does tend to increase with experience. In the
                   future, a growing number of telecommuters will work at regional
                   telework centers. California has authorized development of a
                   prototype telework center in San Bernadino or Riverside County.

                   Based on data from the Telecommuting Pilot Project conducted
                   from 1987 through 1989 by the State of California, the average
                   telecommuter's phone bill increases by about $10/month.  The net
                   impact was a benefit of almost $990,000 for the 150 telecommuters
                   in the project, or about $6,600 per telecommuter. The project paid
                   for itself and also won an award for innovation from the Council of
                   State Governments.

                   Los Angeles County and the City and  County of San Diego also
                   have  test  or operational telecommuting under way.  Los Angeles
                   County had 900 telecommuters by the end of 1990.  "How to Plan
                   For and Supervise Telecommuters"  Nilles, Jack M.  Western City
                   February  1991, pp. 3-7.

               e.  Hawaii -Hawaii's State government, with private sector
                   involvement, has  opened a demonstration, multi-employer
                   telecommuting center 20 miles outside of downtown Honolulu.
                   "The State of Telecommuting" Mokhtarian, Patricia L.  ITS Review
                   August 1990 pp. 4.

            7.  Walk/Jog/Bicycle

               a.  Colorado -- At Public Service Co. of Colorado, employees will
                   continue to get a dollar each day they walk or jog or bicycle or
                   catch a ride to work.  So far, the incentives have helped persuade
                   340 or 6,500 employees to use alternative transportation most days.
                   "Wood-Burning Ban Again in Effect Today, Season's  17th Bad-Air
                   Alert" Rocky Mountain News  January 3, 1991, p. 19.

               b.  Glendale. AZ - This Phoenix suburb of 148,000 people has taken
                   its stable  of unclaimed bicycles and lent them to city employees.
                   The workers pledge to give up driving at least 3 times a week and
                   pedal to work instead.  About 40 city workers are using the bicycles,
                   and there is a long list for more stolen two-wheelers.  The
                   employees can keep the bikes after 1 year if they are not claimed.
                   The effort grew out of an Arizona law that requires all Maricopa
                   County employers with  100 or more workers to reduce by 5 percent
                   the number of people who drive to work alone. The  state law,
                   which provides no penalties as long as employers provide  a good
                   faith  effort to comply, has led to some innovative strategies.  'Town
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                   Uses Stolen Bikes in Fight Against Smog"  Daily News of Los
                   Angeles May 19, 1991, p. U3.

               c.   Huntington Beach. CA - In the AQMD, several firms have installed
                   showers and locker room facilities so workers have a place to
                   freshen up after the spin to work. Others have offered monetary
                   incentives. And some  have even given free bicycles to employees
                   who don't have them.

                   At the Nabisco plant in Buena Park, the company budgeted enough
                   money to buy 8 bicycles for employees willing to commit to riding to
                   work at least three times a week for six months. The company also
                   agreed to reimburse those already commuting by bike with $400
                   each if they met the same criteria.  More than 24 of the plant's 400
                   or so employees are bike commuting today.

                   McDonnell Douglas, the aerospace company, last week held a
                   sweepstakes to give away 50 new mountain bikes.  More than 260
                   people entered, with the winners are to be selected in the next few
                   weeks.  Each person picked must fill out an application pledging to
                   ride to work at least 3  days a week for 3 months.  After that, the
                   bike belongs to the rider.  "These Bike Riders Find They Can Car
                   Less" Los Angeles Times  May 27 ,  1991, p. B-6.

               d.   Irvine. CA ~ Officials at the city of Irvine opted to loan bicycles to
                   employees.  Several bikes that were impounded  by police and never
                   claimed were cleaned up and repaired by a mechanic. So far, 15
                   people have borrowed  the bikes, but officials expect that number to
                   increase.  Of the 520 people who work at the civic center, 150 of
                   them live within 5 miles, an easy commute by bike. "These Bike
                   Riders Find They Can Car Less" Los Angeles Times May 27, 1991,
                   p. B-6.

               e.   Santa Monica. CA - The city will buy its workers  running shoes if
                   they can walk to work  and let them take unmarked police cars home
                   at night if they car pool.  "Environmental Protection Smog, Drought
                   Force New Remedies in California" Boston Globe February 18,
                   1991, p. 1.

               f.   Oxnard. CA - The Oxnard city plan also calls for  installing more
                   showers and bike lockers, and re-striping parking lots  to encourage
                   car-pooling.  The city would also enter into a contract with a child-
                   care referral service to help employees find child-care providers that
                   offer extended hours.   "Oxnard Assails Smog Rules in Delaying 4-
                   Day Workweek Plan"  Los Angeles Times  July  10, 1991, p. B-l.
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               g.  Ventura. CA -- The City gives preferential parking to car pools and
                   has installed showers with shampoo and hair dryers to encourage
                   riding bikes and jogging to work.  Those who share rides or get to
                   work without driving solo also qualify for a $250 drawing held every
                   2 weeks. Ventura County provides preferential parking for car-
                   pools and offers a $200 annual bonus to those employees who share
                   rides twice a week and $300 for those who do so 3 times a week.
                   "Pollution Rules to Affect Most Commuters" Los Angeles  Times
                   April 29, 1991, p.  B-2.

               h.  Simi Valley. CA - Beginning July 1, the city will offer employees $3
                   a day to make the morning commute by walking, jogging, riding  a
                   bike, taking the bus or forming a car-pool. Simi Valley also plans a
                   compressed workweek for some city employees, but one that
                   staggers the shifts so City Hall does not close on a weekday.
                   "Pollution Rules to Affect Most Commuters" Los Angeles Times
                   April 29, 1991 p. 2-B.

               i.   Shoreview. Minnesota - A city with 26  miles of bicycle trails and
                   possibly the only city in Minnesota employing an alternative
                   transportation coordinator, has been exploring the use of small
                   "circulator buses"  to carry bicycles and their passengers between
                   destinations that are beyond pedaling distance.  A biker could hop
                   on a circulator bus in Shoreview, mount his/her bicycle on the front
                   of the bus, ride to some "distant" location, such as the University of
                   Minnesota campus, and then resume use of the bicycle. "Activities"
                   Minnesota Cities  June 1991, p. 45.

               j.   Seattle. WA and Santa Cruz. CA ~ are 2 cities that mount bicycles
                   on their buses, but their buses are larger than the circulator buses
                   Shoreview is considering.  "Activities" Minnesota Cities  June 1991,
                   p. 45.

               k.  Duluth. Minnesota ~ experimented with bicycle mounts on buses,
                   but isn't using them any more. "Activities" Minnesota Cities  June
                   1991, p. 45.

               1.   Glendale. AZ.- Like other major employers in Maricopa County,
                   Glendale faces a State mandate to reduce the number of single-
                   occupancy vehicle commutes to and from work by 5% a year
                   (Arizona's Omnibus Air Quality Act of 1988 went to effect in 1989
                   and applies only to Maricopa County employers with  100 or more
                   employees at a single site).  The city, which employs 1,138  people,
                   offers traditional programs like  subsidized bus passes  and covered,
                   reserved parking spots for car-poolers.  However, as part of a new
                   program, 35 employees are given a bike from unclaimed stolen
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                                                                           DRAFT
                   property recovered by the Glendale Police Department.  They have
                   to agree to ride the bike 3 times per week.  Typically, after time
                   expires for the bikes' owners to claim them, the city would auction
                   them off. But now, the city obtains the bikes on loan before they
                   can be auctioned, takes them to aJocal shop where they are
                   inspected and reconditioned, and distributes them.  "Pedal Power
                   Propels City Employees to Work"  Zolkos, Rodd City & State June
                   3, 1991, p. 18;  Also, "Glendale Workers Use Bike Option" Arizona
                   Republic  March 14, 1991, p. B-3.

               m.  Denver. CO - Denver's Regional Transportation District bought
                   6 mountain bikes last month that it lets employees check out for
                   trips between the agency's downtown office and its nearby district
                   operations center.  The bikes can also be checked out for lunch time
                   rides or to run errands around town. "Regional, State, Local Briefs"
                   Urban Transport News  May 2, 1991, p. 70.

               n.  California -- The Southern California Rapid Transit District
                   expanded its "Bikes on Bus" and "Bikes on Rail" program last week
                   to allow bicycles on its Blue Line Rail line and  one bus line during
                   weekdays. Previously, the bicycles were limited to evenings and
                   weekends  for permit holders. "Regional, State,  Local Briefs" Urban
                   Transport News  July 11,  1991,  p. 110.

               o.  Atlanta. Boston. Milwaukee. San Francisco. Seattle,  and
                   Washington. DC- "Bike and Ride" commuting is becoming more
                   common in these cities. It's cheaper to increase suburban rail use
                   by providing secure bicycle racks and bike lockers than by expanding
                   automobile parking. Permitting bicycles on trains and buses also
                   increases ridership by allowing people to reach destinations that
                   aren't near train stations and bus stops.  "U.S. Takes to Two
                   Wheels"  Lowe, Marcia D. "WorldWatch" January/February 1991,
                   p. 11.

            8.  4-Day Work Week

               a.  Oxnard. CA ~ The City Council is considering a plan where
                   employees would either work 10-hour shifts 4 days/week and take
                   Friday off, or work 9-hour shifts and take Friday off every 2 weeks.
                   A third alternative being considered is a 4-day, 36-hour week, with
                   employees giving up holiday time and benefits to make up the
                   remaining 4  hours. "Oxnard Assails Smog Rules in Delaying 4-Day
                   Workweek Plan" Los Angeles Times  July 10, 1991, p. B-l.
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               b.  Oxnard. CA -- About 350 union employees of the city of Oxnard
                   have volunteered to work 10-hour shifts 4 days/week to help the city
                   with county air-pollution rules. Some city officials have suggested
                   offering cash incentives, lockers, showers, and child-care assistance
                   for employees who ride-share or bicycle to work.  Another
                   scheduling change being considered would have city employees work
                   in 9-hour shifts and take 1 day off every 2 weeks. "Ventura County
                   News Roundup"  Los Angeles Times  July 18, 1991, p. B-3.

               c.  Thousand Oaks. CA ~ Officials have approved a plan to close city
                   hall on Fridays. One argument is that the people who are not
                   working that day are not going to stay home. They will be going
                   somewhere else instead. "County Issue/4-Day Workweek to Reduce
                   Air Pollution"  Los Angeles Times  August 5, 1991, p. B-2.

            9.  High Occupancy Vehicle Lanes

               a.  Washington State ~ The Washington State Legislature has passed a
                   $2 billion transportation bill for 1991-93 that includes provisions for
                   more High  Occupancy Vehicle lanes and expanded ferry service.
                   The bill also includes high capacity transportation planning, such as
                   funds for studies on rail systems and improvements to existing
                   Amtrak service.  "Regional, State, Local Briefs"  Urban Transport
                   News July  11, 1991, p. 110.  (Newsletter)

       D.   Mass Transit

            1.  General

               a.  Colorado - The Colorado Senate passed a bill to create a new
        0          Denver Metropolitan Transportation Authority and preserve a
                   0.4 percent sales tax hike earmarked for mass transit. "Denver-Area
                   Transportation Package Advances in Colorado Legislature" Urban
                   Transport News"  May 3, 1990. (Newsletter)

               b.  Los Angeles ~ The number of bus passengers has increased from
                   1.6 million  in 1987 to 2.8 million in 1991, 75%, mainly due to an
                   aggressive marketing campaign that includes everything  from
                   occasional free ride promotions to TV ads.  South Coast Area
                   Transit (SCAT) has an agreement with local media organizations to
                   exchange advertising space on buses for newspaper ads and radio
                   and TV spots. SCAT is planning to offer discounts to entice
                   employers to subsidize worker bus passes.  For example, a 20-ride
                   ticket will be available for $14, a savings of 1 dollar.  A 30-ride
                   ticket will be offered for $22.50, a savings of $2.50. The tickets can
                   be used at any time. The county transportation commission is also


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                   working on ways to make it easier for people to use the bus.  The
                   commission is expected to establish a toll-free bus information
                   number in June. This would be one number where they could get
                   all their bus service information. The Interconnect Bus Service,
                   however, is lagging.  Hoping to attract riders, the city plans to offer
                   a $10 pass good for the entire summer.  "Ridership Gains Show
                   Buses Are Winning Respect"  Los Angeles Times May 27,  1991,
                   p. B-l.

                   Federal agencies can use public funds to participate in incentive
                   programs that encourage Federal employees to  use public transit.
                   The bulletin opens the door for local transit agencies to target
                   Federal agencies and their employees for mass  transit incentive
                   programs. Such incentive programs are commonly used for agencies
                   in places like L.A., Phoenix, Philadelphia,  and New York.

                   Last  month the IRS raised the tax deduction for employers  who
                   subsidize their employees to use mass transit from $15  to $21.
                   Although Federal employees are prohibited by law from receiving
                   outright payment for their commuting costs,  the bulletin says they
                   can participate in existing subsidy programs. "Federal Agencies Can
                   Participate in Mass Transit  Incentive Programs" Urban Transport
                   News August 8, 1991, p. 124.

                   A bill aimed at increasing the use of public transit  by extending
                   employee parking benefits to mass transit  lots was introduced in
                   Congress last week by Sen Bill Bradley (D-NJ). Under current tax
                   laws, employers may  deduct for parking they provide for employees
                   when it is at or near  the workplace, which encourages people to
                   drive to work.  Bradley's bill, S. 1244, would seek to modify the tax
                   code by allowing employers to deduct the  cost of employee  parking
                   in lots adjacent to public transit stations and car and van pooling
                   areas.

                   Bradley also has supported  a similar transit bill introduced this year
                   to allow a tax deduction to  employers who give transit passes to
                   employees who use mass transit to commute to work.  The bill
                   would increase the maximum deduction from $15 to $60 a month
                   per employee.  "Senate Bill Would Give Tax Deduction For Using
                   Mass Transit Parking Lots"  Urban Transport News June 13, 1991,
                   p. 92 (Newsletter).
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            2.  Light Rail/Maglev

               a.  Baltimore. MD ~ A new 22-mile light rail line is being built around
                   Baltimore, expanding the city's 15-mile subway system.  Baltimore
                   and 2 surrounding counties will chip in $15 million.  The system will
                   be built on city streets and on freight right-of-way on the city's
                   outskirts, and will cost about $15 million per mile.  "Mass
                   Movement"  State Government News  June 1991, p. 18.

               b.  Dallas. TX ~ Has begun work on a $2.1 billion, 67-mile light rail
                   system that will take 2 decades to complete. Also underway is an
                   18-mile commuter rail and 37 miles of carpool lanes. "Mass
                   Movement"  State Government News  June 1991, p. 18.

               c.  Houston. TX ~ is putting in a 24-mile monorail.  "Mass Movement"
                   State Government News June 1991, p. 18.

               d.  California ~ is investing $6.5 billion in a 80-mile Los Angeles light
                   rail system that, together with commuter rail, will link outlying cities
                   such as Santa Monica, Santa Ana, and San Bernadino.  "Mass
                   Movement"  State Government News  June 1991, p. 18.

               e.  Florida and Los Angles/Las Vegas ~ Construction will begin in 18
                   months on a 13-1/2 mile German magnetic levitation system in the
                   Orlando-International Drive Corridor (~ 1 mile from Disney
                   World). The train  will  move at 250 mph and deliver passengers
                   from Orlando to  International Drive in 6 minutes.  Another maglev
                   system is being considered in the 265-mile Los Angeles to Las
                   Vegas  corridor, but adequate financing has not yet been found.
                   Reauthorization of the  Federal transportation bill provides a
                   window of opportunity to get the U. S. back in the maglev
                   technology race (Germany and Japan have moved ahead in
                   commercial applications). A proposal before Congress would
                   provide $1 billion over  5 years to design a maglev system and
                   develop national  standards.  A competition would be held to
                   produce a winning  design, which would be used in a 35- to 40-mile
                   demonstration project.  Such competitions should help produce
                   technology more  affordable than today's, which cost $24
                   million/mile. "Life in the Fast Lane"  State Government News
                   June 1991, p. 22.

                   Orlando. FL ~ Maglev  (magnetic levitation) systems  are high  speed
                   trains that use superconducting magnets to "fly" on a  cushion of
                   electromagnetism at speeds of more than 300 mph.  Maglev trains
                   have the potential to move passengers and freight in  high density
                   transportation corridors quickly and quietly, but at a  rather great


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       expense. And, maglev systems may pose new environmental and
       safety questions. A proposed maglev project is a 13-mile line
       linking Orlando International Airport and the Disney World Epcot
       Center. "Maglev Attracting Attention"  ITS Review, pp. 2-3.  May
       1991.

       Houston. TX -The Houston Metropolitan Transit Authority
       (METRO) decided last week to build the nation's first monorail
       system. The $1.2 billion system will extend from downtown Houston
       to 21 stations located in population and business centers around the
       Houston area. The next step is for METRO general manager Bob
       MacLennan to negotiate a contract with Transportation Group Inc.
       of Orlando, FL to design the first 14 miles of the 22-mile rail
       system.
       Another obstacle to the project will come later this month when
       METRO officials lobby for Federal funding in Washington, DC.
       The March 28 decision by  the METRO board was needed before
       the Urban Mass Transportation Administration (UMTA) would
       listen to any requests for Federal aid.  About 60% of the funding is
       expected to come from the Federal government.

       Design of the system  is expected to take about a year. Construction
       is not expected to begin until the end of 1992, with the first leg in
       operation  in 1996.  "Houston Chooses $1.2 Billion Monorail for First
       of its Kind Transit System" Urban Transport News  April 4, 1991
       (Newsletter)
3. Metro
       Atlanta. GA ~ Encouraged by the success of a free parking
       experiment last December, the Metropolitan Atlanta Rapid Transit
       Authority (MARTA) plans to offer riders another month of free
       parking this month.  Results of the December experiment show that
       an average of 6,900 vehicles per  day — 1,300 more than expected —
       were lured by the offer of free parking at MARTA rail stations.
       The additional commuters translated to 1,500 more paying
       passengers  in December. The experiment proved that people used
       the mass transit system more often because of the free parking.
       MARTA expected to lose $53,000 in parking revenue because of the
       free parking.  The results showed that the loss of parking revenue
       was offset by the increase in fares from passengers. For more info
       call Mak Gebre-Hewit at (404) 848-5117. "Marketing Moves:  Free
       Parking Brings New Riders in Atlanta" Urban Transport News
       May 2, 1991, p. 72.  (Newsletter)
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            4.  Buses
               a.  New York/New Jersey - In December 1990, the exclusive
                   counter-flow bus lane on New Jersey Route 495 leading to the
                   Lincoln Tunnel and Manhattan celebrated its 20th year of
                   operation.  During its 20 years of operation, the bus lane has
                   provided quick, reliable access to Manhattan for more than
                   6 million buses and nearly 244 million passengers.

                   The exclusive bus lane (XBL) was the first counterflow bus lane on
                   a freeway in the U.S.  The far left lane of the westbound travel
                   lanes of Route 495 is converted to the XBL during the morning
                   peak period.  Its success has led to the implementation of several
                   similar operations in the NY-NJ metropolitan region (on the
                   approach to the Queens Midtown Tunnel and the Brooklyn Battery
                   Tunnel) and in other States.

                   The XBL was implemented by the Port Authority of NY and NJ, in
                   cooperation with the New Jersey Department of Transportation
                   (NJDOT) and the New Jersey Turnpike Authority  (NJTPKA).  As a
                   counterflow lane in the busiest freeway bus travel corridor in the
                   world and within a complex multijurisdictional situation, the XBL
                   required intensive political, administrative, and  technical efforts.

                   Initial funding was provided by the U. S. Department  of
                   Transportation. "Route 495 Exclusive Bus Lane:  A 20-Year
                   Success Story" ITE Journal  April 1991, pp. 26-29.

               b.  Montreal. Canada - Montreal's R-bus service has boosted bus
                   ridership in the area by 35% since it started last June. The R-Buses
                   (R for reserved lane) run in a special lane against  the flow of traffic.
                   A flashing yellow arrow on the front of the buses warns any
                   motorists who cross into the lane to move aside. An average
                   commuter who uses the R-bus for its entire route can save 15
                   minutes of  driving time per day. No additional fare is charged for
                   R-bus rides. Transfers from intersecting buses and the subways are
                   free. "Regional, State, Local Briefs"  Urban Transport News  April
                   4, 1991, p. 54.

               c.  Phoenix. AZ ~ The Phoenix Transit System has introduced the
                   nation's first transit credit card.  Called the "Bus Card Plus," it
                   allows bus patrons to be billed for transit use directly  through
                   payroll deductions.

                   Bus Card Plus cards are issued to employees of major employers,
                   who are required by a 1988 State law to reduce single-occupant
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                   vehicle trips by employees by 5%. Each time an employee boards a
                   bus, he can slide the card through a magnetic card reader installed
                   on the farebox. The employer's identification number, encoded on
                   the plastic card, will be automatically entered into a computer,
                   enabling the transit system to provide employers with  a monthly
                   invoice for fares and reports of ridership statistics.

                   In addition to travel reduction figures, companies that offer transit
                   subsidies to their employees will receive cost saving benefits.  Under
                   the current pass program, a company could provide an employee
                   with a monthly local service pass for no more than $27. It can be
                   used for an unlimited number of rides.

                   Valley National Bank of Arizona plans to  be the first  employer to
                   use the new card system beginning on April 1. It is issuing 950
                   cards  to employees throughout metropolitan Phoenix.  For more
                   info call Scott Hanson at (602) 954-8518.  "Marketing  Moves:
                   Transit Credit  Card Debuts in Phoenix" Urban Transport News
                   March 21, 1991, p. 48.

               d.  Phoenix. AZ -- The City of Phoenix is distributing Bus Card Plus
                   cards  to 2,000 municipal employees, joining Valley National Bank of
                   Arizona as the only companies offering  this transit convenience to
                   its work force.  Each time an employee  boards a bus,  he slides the
                   Bus Card Plus  card through a magnetic  card reader installed on the
                   farebox. The employer's i.d. number, encoded on the  card's
                   magnetic strip, is automatically entered  into a computer.  The transit
                   system then sends the employer a monthly invoice for  fares and
                   reports ridership statistics. "Employers are billed only  for trips
                   actually taken by employees, rather than for monthly passes.  The
                   advantage is cost savings along with credit for travel reduction. For
                   more  info, call the Phoenix Transit System Business Outreach Office
                   at (602) 261-8505.  "Phoenix Boosts Transit Credit Card"  Urban
                   Transport News  July 11, 1991, p.  112.

               e.  Madison. WI ~ The Madison, WI, Metro Bus system began its new
                   Free Fare Zone Service recently, allowing passengers  in the
                   downtown area to ride buses free. The  Free Fare Zone includes
                   downtown Madison and most of the University of Wisconsin-
                   Madison. From 10 a.m. to 3 p.m., Monday through Saturday,
                   passengers can board a Metro bus at  any of 48 stops designated with
                   a special free fare logo and travel within the zone free.  Passengers
                   most likely  to benefit are downtown employees on lunchtime
                   schedules. Passengers who  begin or end their trips outside the Free
                   Fare Zone will pay the regular fare.  Metro monitors make random
                   checks for proof of payment. Before  the bus enters the Free Fare
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                  Zone, monitors present transfers to those passengers who do not
                  have a valid Metro transfer or pass. The transfers act as proof of
                  payment.  When the bus leaves the Free Fare Zone, monitors ask
                  passengers to show their proof of payment.  Fare evaders are
                  warned the first time and then fined $50, $100, and $200 for
                  subsequent offenses.  "Marketing Moves:  Madison Offers Free Fare
                  Bus Zone" Urban Transport News April 4, 1991, p. 56.
                  (Newsletter)

               £  Atlanta. GA -- The Metropolitan Atlanta Rapid Transit Authority
                  (MARTA) has worked with the local business community to develop
                  coupon books good for discounts at area entertainment spots,
                  restaurants, and shops. The coupon books are given away to
                  passengers who purchase weekly or monthly bus passes.  "MARTA
                  Offers Coupons with Bus Passes"  Urban Transport News  August
                  22, 1991, p. 113. (Newsletter)

               g.  Detroit. MI ~ Passengers buying monthly parking permits at
                  specially designated lots can also buy a People Mover monthly pass
                  for $10 -- a 50% savings off the normal $20 price. More than 30
                  parking lots located near People Mover bus and commuter train
                  stations were chosen to participate in the program.  Only monthly
                  parkers can buy the 1/2 price passes.  "Marketing Moves:  Detroit's
                  Parking and Mass Transit Come in One Deal"  Urban Transport
                  News  January 24, 1991, p. 16.  (Newsletter)

               h.  Columbus. Ohio -- The Central Ohio Transit Authority (COTA)
                  developed a program last fall that  turns bus passes into a fringe
                  benefit for Columbus area employees.  Under one part of the
                  program, COTA gives a roll of passes to employers who then sell
                  them to employees.  About once per month, a COTA representative
                  goes to the companies and collects the money earned from sales  of
                  the passes.

                  A second part of the program allows employees to automatically
                  deduct the cost of monthly bus passes from their paychecks. The
                  passes are then included with the paychecks. Some employees pay
                  for at least part of the pass's  cost.  Monthly bus passes sold  out for
                  the first time in January and  February. "Marketing Moves:
                  Employers Use Bus Passes as Fringe Benefit in Columbus" Urban
                  Transport News March 7, 1991, p. 40. (Newsletter)
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            5.  Van Pools

               a.  Chicago. Illinois -- Chicago's Pace transit agency has approved a 3-
                   yr, $1.6 million contract with United States Fleet Leasing Inc. for a
                   van pool for local commuters which could begin service in
                   September.  Pace operated buses throughout the Chicago area. In
                   the van pool, people who work at the same job site or live  near one
                   another can commute together with one person  designated as the
                   driver.  Pace will lease the vans, but drivers will ride free and have
                   limited personal use of the vehicles. Pace officials plan to  start the
                   van pool on a small scale of about 10 vans and grow if demand is
                   sufficient. "Regional, State, Local Briefs" Urban Transport News
                   August 22, 1991, p. 134. (Newsletter)

       E.   Restrictions on Road Construction

               a.  San Francisco. CA — Last  month, in a suit brought by the Sierra
                   Club and Citizens for a Better Environment, U.S. District Judge
                   barred the Metropolitan Transportation Commission from  approving
                   freeway expansions until it can demonstrate that air quality will not
                   suffer. "A Push to Cut Traffic 35% in 7 Years"  San Francisco    '
                   Chronicle January 16, 1991, p. Al.

               b.  Long Island. NY ~ Officials would have to set and meet annual
                   targets for the number of car trips taken in the region.  No road
                   expansion could go forward without proof that it wouldn't upset the
                   plan.  Adding a lane to  a road couldn't be done without showing
                   that vehicle trips elsewhere would drop. Only safety projects are
                   exempted.  But the regulations would provide a  boost for the State's
                   plan to restrict a new lane of the Long Island Expressway to car
                   pools only. "Car Pools Ahead New Clean Air Act Provides for
                   'Gun-to-Head' Plans to  Reduce Air Pollution. Newsday March 25,
                   1991, p. O5.

               c.  California - The Air District is considering seeking to control future
                   highway construction on the grounds that roads, like shopping
                   centers, are indirect sources of pollution that should be subject to
                   stricter regulations  "Employee Parking Fee Shelved"  San Jose
                   Mercury News  February 28, 1991, p. 1-C.

               d.  Santa Clarita. CA - To reduce traffic, options include reducing
                   truck traffic during the peak hours, synchronizing traffic signals to
                   minimize the time of idling motors, and expanding and encouraging
                   the use of the city's bus system.  "City Will Receive $90,000 to
                   Improve Quality of Air" Daily News of Los Angeles  June  17, 1991,
                   p. SAC2.


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n.     Fireplace Control Measures

               a.  Utah ~ Sales tax exemption for conversion of fireplaces to natural
                   gas or propane.  "Alternative Fuels: Politics Threatens New York
                   Program for Must-Buy Clean Fueled Vehicles" Energy Report.
                   January 14, 1991 (Newsletter).

               b.  Colorado -- In Telluride, CO, the legislation was created to regulate
                   solid-fuel-burning devices. This means any kind of fireplace or
                   wood-burning stove.  Every 'device' must have a permit and be up
                   to certain tight standards ~ or it cannot be used.  Under the town
                   rules, any homeowner who wants to burn wood must find two
                   people wiling to sell their permits,  thus reducing the total number of
                   potential polluters allowed. The cost of single permits has soared to
                   between $1,200 and $1,400, so just  the privilege of fire can run up to
                   $2,500.  No building can have more than one  such stove  or fireplace,
                   so the warm-fire apres-ski atmosphere takes some looking for  here.
                   "As California is Limiting the Barbecue,  so Colorado Changes the
                   Fireplace Pollution"  Los Angeles Times February 3, 1991, p.  M-5.

               c.  San Francisco. CA — The Bay Area AQMD will ask the  public to
                   voluntarily curtail burning wood when winter surface-based
                   temperature inversions occur. "San Francisco Request to Curtail
                   Burning of Wood" San Francisco Chronicle  February 22, 1991,
                   p. B6.

               d.  Oregon — The State is continuing current standards that  ban wood
                   fires when air quality deteriorates.  A $30 fee will be added to all
                   new stoves and a $3 fee will be  added to every firewood  cutting
                   permit, with the money going to the air pollution fund for research.
                   "Pollution Broom Adds Fireplaces  to Sweeping Clean Air List"
                   Oregonian  March 25, 1991, p. BO2.

               e.  Oregon ~ Klamath County  commissioners adopted an  ordinance
                   barring most wood stoves from burning on days when the air
                   pollution is bad.  In the Eugene-Springfield area, wood stove
                   polluters will face fines beginning in November.

                   Eugene, Springfield, urban Lane County, Medford, and Jackson
                   County started mandatory wood stove  smoke programs last year.
                   Grants Pass has a voluntary one, and La Grande will begin a
                   voluntary effort this winter.

                   The new "pay-to-pollute" legislation will prohibit sales  of uncertified
                   used wood stoves after Nov. 15  and will give the DEQ an extra
                   enforcement tactic for nonattainment areas by requiring the removal


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                                                                           DRAFT
                   of uncertified stoves from houses that change hands, beginning
                   in 1994.

                   The new legislation also set a $3-per-cord emission fee on
                   cordwood, effective July 1, 1992, and created a grant and loan
                   program to help citizens replace their older, polluting stoves with
                   certified, clean-burning stoves.

                   In Klamath County, a special effort to educate the public that
                   controls wouldn't completely outlaw wood heat, and grants helping
                   poor people weatherize and convert to other heat sources helped
                   bring public acceptance of the measure.

                   The county hired an air quality specialist, who secured grants to
                   help install insulation and replace wood stoves in 200  of the 600
                   houses that had no other heat.

                   On so-called red days, when an air inversion locks pollutants in the
                   valley, only pellet stoves and stoves that serve as the sole source of
                   heat in a household can burn. Those with other sources of heat
                   must use them. On yellow days, when conditions are marginal,
                   state-certified stoves also can burn.  On green days,  any stove can
                   burn. Violators will face fines ranging from $50 to $500.  The new
                   ordinance will be enforced by patrols looking for chimney and
                   stovepipe smoke.

                   People who rely on wood stoves as their sole source of heat and
                   those with incomes that are 125% of the poverty level or less can
                   apply for exemptions from the-program.  "Governments Fight Wood
                   Stove Pollution" Oregonian August 6, 1991, p. BO4.

               f.   Reno. Nevada — Health Department Officials ban wood-burning
                   except for heating purposes on many winter days, require old stoves
                   to be removed or improved when homes are sold, and prohibit
                   fireplaces or wood-burning stoves in most new homes. "Smog May
                   Mean Curbs on Burning" San Jose Mercury News  February 22,
                   1991, p. 1-B.

       Green Tax/Carbon Tax/Emission Fees

               a.  European Community ~ Carbon taxes are market mechanisms
                   intended to force users to operate more efficiently, cleanly.  No
                   agreement yet.  "No EC Agreement on Green Taxes"  Business and
                   the Environment October 18, 1990 (Newsletter)
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               b.  Mexico City - All fossil fuels will have a 12.5% tax which will fund
                   part of a drastic program to curb air pollution. 'Tech Brief:  Mexico
                   City Plans to Deal with Smog"  Environmental Business Journal
                   December 1990 (Newsletter)

               c.  Congress' Office of Technology Assessment identifies a tax on
                   carbon as one of the most promising.  Carbon taxes are charges on
                   fossil fuels set according to their  carbon content. Under such a
                   scheme, coal would bear a larger tax than oil, whose tax would, in
                   turn, be greater than that on natural gas.

                   Like a general energy tax, a carbon tax would encourage all
                   consumers, whether individuals, businesses, or government, to use
                   less fossil fuel.  An additional benefit from carbon charges is that
                   they would also promote fuel switching.  Over the long term, carbon
                   charges would provide an incentive for development of alternative
                   renewable sources of energy.  Chemical and Engineering News
                   April  1, 1991  "Economic Considerations Enter Fray Over Global
                   Climate Change Policies," p.  7.

               d.  The Union of Concerned Scientists (UCS) conservation proposal
                   contains several tax  components.  According to the UCS:  the 10%
                   tax credit for solar and geothermal power should be  raised to 15%
                   and broadened to include all renewable resources; tax credits should
                   be granted for residential solar installations; gasoline taxes should
                   be substantially increased, with the additional revenue going to mass
                   transit and energy conservation; and inefficient appliances should be
                   subject to an excise tax, with the  revenue funding rebates on  high-
                   efficiency appliances.

                   Also:   the mile's per gallon floor on the gas-guzzler tax should be
                   increased and the tax extended to light trucks and vans; the
                   employer's tax deduction for employee parking expenses should be
                   eliminated, with resulting revenues funding mass transit stipends for
                   employees; a federal tax credit of 2 cents per kw-hr of electric
                   power production from renewable resources should be created, to
                   be phased out over 8 years; and the Internal Revenue Service
                   should be directed not to treat as income utility company rebates to
                   consumers for investments in increased energy efficiency.  "National
                   Energy Strategy" Hoerner, J. Andrew, Tax Notes  February 25,
                   1991, p. 818.

               e.  The European Community ~ Carlo Ripa Di Meana,  environmental
                   commissioner in the Commission of the European Community,
                   supports  a tax on carbon-dioxide-generating fuels.  He has placed
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                   his tax proposal for such fuels on the commission's agenda for next
                   week.

                   The tax basically would add the equivalent of $10 to the cost of a
                   barrel of oil consumed. The immediate charge would hit electricity
                   generators who, in turn, would pass on the cost to their industrial
                   customers.  No cost increases are supposed to be passed on to
                   consumers, however.  Fuels that generate less or no CO2 would gain
                   a competitive price advantage, encouraging a move away from coal
                   and oil to cleaner burning natural gas, to nuclear power, and to
                   other energy sources.  "European Community to Consider CO2 Tax"
                   Chemical and Engineering News September 16, 1991,  pp. 5-6.

               f.   The Worldwatch Institute suggests 8 possible environmental  taxes,
                   including a $100/ton  tax on the carbon content of fossil fuels, a
                   $100/ton tax on hazardous wastes, a 50% tax on pesticides, and a
                   $64/ton tax on paper and paperboard produced from virgin wood
                   pulp.  The report recommends phasing in the taxes over a 5- to 10-
                   year period to ease economic effects.

                   Worldwatch President Lester Brown stressed that green taxes should
                   be used to shift the tax burden from the personal income tax.  For
                   tax payers with low incomes, a credit similar to the earned-income
                   credit could be used to ensure progressivity.  "Green Taxes Integral
                   to Future, Worldwatch Institute Contends" Tax Notes. February 25,
                   1991, p. 819.

               g.  New York. Massachusetts, and California ~ States are beginning to
                   avoid adding energy resources-that release high levels of pollutants.
                   New York was the first to assign a cost to CO2  emissions in its
                   guidelines for evaluating utilities' resource options.  Massachusetts
                   followed in August 1990 with a $22/ton assessment, which is roughly
                   a 20-fold increase over the New York value.  California regulators
                   are considering staff proposals to raise this figure further to assign a
                   $26/ton value  to CO2 releases.  "Statehouse Effect Combats
                   Greenhouse Effect" Cavanagh, Ralph C. and Arthur H. Rosenfeld.
                   The Journal of State  Government. Vol. 63. p. 98.

               h.  Sweden -- Swedish officials have drafted proposals  that would tax
                   sulfur, NOX, and  CO2 emissions. If the proposed plan is approved,
                   by the end  of the decade it would reduce  SO2 emissions by 7% from
                   their 1987 level, NOX by 8%, and CO2 from 9 to 17%.
                   "Communication:  A Global  Agenda for Clean Air" Energy  Policy
                   July/August 1990,  p. 584.
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               i.   Idea for a new kind of tax (or fee) used to signal ecological impacts
                   and consequences, and thus seriously influence the behavior of
                   producers and consumers.  This new Restoration Tax would tax
                   activities according to the rough amount of ecological damage they
                   cause, and divert the funds thus raised back into restoring or
                   diminishing that damage. For example, the Restoration Tax on
                   paper products would support reforestation efforts, development of
                   sustained-yield forestry, and development of a universal paper-
                   recycling industry.  Restoration Tax money from cars would go
                   toward developing alternative energy sources, redesigning cities so
                   that less motorized transportation of any kind is needed, and
                   providing noninternal-combustion-engine modes of transit.  Because
                   of the vast variety of products in our society, these taxes could not
                   practically be levied at the point of sale; they would have to be
                   levied, like the value-added taxes familiar in most countries, at the
                   point of manufacture, but they should be publicized (like cigarette
                   health-warnings are) on the goods themselves. "The  Restoration
                   Tax" Whole Earth Review Winter 1990, pp. 118-119.

               j.   Germany ~ The Social Democratic Party is proposing an Ecotax
                   that will especially impact petroleum products; its proceeds,
                   however, will be used for social and not ecological purposes.  The
                   German Green Party is backing an even more relevant Ecotax on
                   primary energy  (nuclear, oil, coal, and  natural gas) whose proceeds
                   would be used to  extend public transportation and finance
                   conversion to sustainable energy sources; they also favor heavy taxes
                   on environmentally damaging packaging, atmospheric emissions, and
                   so forth,  to finance an ecological damage fund.  "The Restoration
                   Tax" Whole Earth Review Winter 1990, pp. 120.

               k.  Sweden - The official report of a Swedish 4-man Expert Committee
                   recommends that  a "pollution charge" be linked to the emission of
                   Sulfur, NOX, and CO2. The charge should be concurrent with
                   financial support to environmentally-sound technologies.  The
                   Committee recommends that Sweden lead the way and become the
                   first country in the world to charge industry for the emission of CO2.
                   The Committee also recommends special charges on the use of fuel
                   oil, coal, petrol, natural gas,  and propane.  At the same time, it is
                   suggested that financial support be given to motor vehicles that
                   reduce emissions of exhaust fuels to levels below the minimum level
                   required, and to electricity produced using renewable energy
                   resources such as  wind and biomass. "Sweden Proposes Charges on
                   Emission of Pollutants to Finance Environmentally Sound
                   Technology"  Ambio Vol. 18, No. 8, 1989, p. 462.
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IV.    Consumer Products Control

               a.  Los Angeles. CA -- The California Air Resources Board is
                   contemplating  an "innovative products" clause in its consumer
                   products regulation to allow manufacturers to keep their current mix
                   of ingredients if they could reduce the frequency of use or otherwise
                   guarantee that fewer pollutants were escaping into the atmosphere.
                   "California Plan Aims at Household Goods to Cut Air Pollution"
                   Los Angeles Times June 7, 1991, p. A3.

               b.  Los Angeles. CA -- Perfume, dishwashing liquid and laundry
                   detergents, starches, shoe polish, insecticide, and car wax are types
                   of consumer products that are among targets for reformulating to
                   lower VOC emitting  contents. Automotive brake cleaners, car
                   leather and vinyl cleaners, fabric protectants, waterproofing
                   products, household glues and cements, sealants and caulkers, might
                   all have trouble staying on the market if mandated to switch to
                   lesser polluting formulas.  "Perfumes,  Detergents Put on Smog-Fight
                   List"  San Jose Mercury News June 7, 1991, p.  4-B.

V.     Grants/Awards for Innovation Assistance

               a.  Maryland - Approval of $360,000 in State grants to assist local
                   jurisdictions implement air pollution control programs, funded from
                   permit fees and civil  penalties "Maryland"  Environment Week
                   February 8, 1990  (Newsletter)

               b.  Santa Ana. CA -  Ultrox International of Santa Ana, CA has won  a
                   $300,000 Army Corps of Engineers  contract to develop a technology
                   for combating  industrial air pollution. Awarded under the Small
                   Business Innovation Research Program, the company will build a
                   full-scale field  model of its "air stripper" which is used to destroy air-
                   borne solvents. "Second SBIR for ULTROX" New Technology
                   Week  April 30, 1990 (Newsletter)

VI.    Green Labeling

               a.  A coalition of  trade associations representing some 1,000 major
                   corporations has petitioned the Federal Trade Commission for
                   Guidance on Green Labeling "The  Big Muddle in Green Marketing"
                   Fortune. June 3,  1991, p. 92.

               b.  California ~ A bill in the California legislature  would outlaw the
                   word "recyclable" on  all labels unless consumers have easy access to
                   a recycling facility. "The Big Muddle  in Green  Marketing"  Fortune.
                   June 3,  1991, p. 92.


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                                                                           DRAFT
               c.   Germany -- Among the first National environmental product
                   labeling programs, Germany's Blue Angel award has been operating
                   for 12 years. More than 3,000 products in nearly 60 different
                   categories have been given the Blue Angel seal -- modeled after the
                   United Nations Environment Program logo.  An informational label
                   accompanying the seal describes the particular benefits of each
                   product.

                   An independent "environment label jury" consisting of
                   representatives from industry, unions, consumer organizations, and
                   scientists makes the final determinations, and the Ministry of
                   Environmental Affairs publishes them.  Manufacturers can then
                   apply to have their products awarded the seal. Following a
                   government investigation by multiple agencies, the eco-label  is
                   awarded for a 3-year period. Renewals require a new investigation.

                   The majority of the public is aware that the federal seal is
                   predicated on strict criteria, but they also think that ecological terms
                   used in advertising are regulated.

                   One major complaint focuses on the  fact that the program applies to
                   a product's achievement in only one area. A comprehensive
                   classification system  should include the product's use of natural
                   resources, the environmental consequences of its productions and
                   distribution, and problems associated with its disposal.  Helm,
                   Wolfgang. "In  Germany, Green Products are Colored Blue"  The
                   Environmental Forum Nov/Dec  1990, p. 31.

               d.   Canada -- Launched its Environmental Friendly Products  program in
                   1987, organized and administered by Environment Canada.  Unlike
                   the  German program, it evaluates the entire life cycle of a product
                   for its environmental impact. Helm,  Wolfgang.  "In Germany,
                   Green Products are Colored Blue" The Environmental Forum
                   Nov/Dec 1990, p. 32.

               e.   Canada -- Canada's Environmental Choice program started up in
                   March  1989 and has already certified products from 33 companies.
                   "Green Labels  Aim to Aid Eco-Conscious Shoppers"  Utne Reader
                   March/April 1991, p. 38.

               f.   Green Cross, based in Oakland, CA, has certified 50 supermarket
                   items, including paper towels, toilet tissue, plastic trash bags, and
                   campfire logs.  Green Cross doesn't establish standards so much as
                   it takes  companies to task for the claims in their marketing.
                   However, certification criteria are limited to recyclability and
                   biodegradability: A product can legitimately adorn its package with
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                   the Green Cross and still use plenty of toxic chemicals in
                   manufacturing.  "Green Labels Aim to Aid Eco-Conscious Shoppers"
                   Utne Reader March/April 1991, p. 38.

               g.  Green Seal is a more comprehensive environmental-labeling effort.
                   A product's environmental impact will be examined from "cradle to
                   grave" - from the resources (including energy consumed in its
                   production) to the fuel that is burned in its transportation to the
                   toxic and radioactive waste created  before, during, and after its use.
                   Green Seal had not yet certified any products at the time of this
                   writing.  "Green Labels Aim to Aid Eco-Conscious Shoppers" Utne
                   Reader  March/April 1991, p. 40.

               h.  Companies in other countries are already developing green products
                   under the impetus of foreign labeling programs in Australia,
                   Canada, Czechoslovakia, Germany,  Japan, and the Nordic countries.
                   Dean, Norman L. "An Educated Consumer is the Best Consumer"
                   The Environmental  Forum  Nov/Dec 1990, p. 30.

               i.   A 10-state environmental marketing task force was formed to
                   combat "green scams" by prosecuting firms that make misleading,
                   deceptive, and false environmental claims for their products. The
                   group, formed in late 1989, includes the attorney generals of
                   California, Florida, Massachusetts, Minnesota,  Missouri,  New York,
                   Texas, Utah, Washington, and Wisconsin.

                   The task force has issued these recommendations for responsible
                   environmental marketing:  claims should be specific, not general,
                   vague, incomplete, or overly broad; claims of "degradability"  and
                   "recyclability" should not be made unless the disposal options which
                   will back up those claims are available to consumers in the area
                   where the product is sold; claims should be substantive; claims
                   should be supported by reliable scientific evidence.

                   Along with the guidelines, environmental "seal of approval"
                   programs are being  considered that would be modeled on programs
                   underway in Germany, Canada, Japan, and Norway.  Under the seal
                   of approval system, products judged to have lower environmental
                   impacts, such as low pollution, water-based paint and reusable cloth
                   diapers, are given seals of approval. Klein, Karen E.  "How  Green
                   is Your Product?" Student Lawyer  May 1991 pp. 45-47.

               j.   Some States, including California and New York, have recently
                   passed legislation that regulates the use of environmental terms like
                   "recyclable," "degradable," "recycled," "ozone friendly,"  and
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                   "environmentally friendly."  Klein, Karen E.  "How Green is Your
                   Product?"  Student Lawyer May 1991, pp. 46.

                   To minimize consumer confusion and prevent abuse of
                   environmental claims, 2 steps are required: First, State and Federal
                   officials must pursue legal actions to stop the most blatantly
                   misleading environmental claims. Second, the marketplace needs a
                   set of clear standards.  We need national standards applicable to all
                   environmental claims so consumers are able to learn what terms like
                   "recycled" or "degradable" really mean. Humphrey III, Hubert H.
                   "Making Sure Green Claims Aren't Gray"  The Environmental
                   Forum Nov/Dec 1990, p. 33.

                   To help educate consumers, Green Seal plans to identify and place
                   a label of a blue globe and green check mark on products that are
                   significantly less damaging to the environment.

                   Green Seal is establishing standards based on how much pollution is
                   generated when the products are manufactured, how they are
                   shipped, whether they contain toxic materials or are dangerous when
                   used, if they harm fish and wildlife, how durable they are, whether
                   they exacerbate the nation's solid waste problems, and whether they
                   can easily be repaired, reused, or recycled.  Green Seal is also
                   looking to see if products are reasonably packaged.

                   Green Seal is establishing environmental standards  for light bulbs,
                   laundry cleaners, house paints, tissue and toilet paper products, re-
                   refined motor oil, water saving devices, and energy  saving
                   appliances, with more to come.

                   Once standards have been set, manufacturers will be free to submit
                   their products for testing and evaluation.  Those that pass can use
                   the Green Seal label. The concept behind such an  environmental
                   labeling program is simple:  encourage consumers to buy
                   environmentally better products and thereby provide manufacturers
                   with a strong economic incentive to design and manufacture more of
                   them.

                   Environmental labeling programs are already underway in Canada,
                   Germany, Japan, Australia, New Zealand, and Norway. The
                   European Community this year announced it would  launch a
                   program. "Claims Worth Trusting"  State Government News April
                   1991, p. 13.
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VII.   Charges for Waste Disposal

               a.  Perkasie. Pennsylvania -- People have to buy specially marked
                   garbage bags from the city: $1 for a 20-pound bag or $1.75 for a 40-
                   pounder (up from 85 cents and $1.50, respectively, last year).  The
                   charge cut the tonnage of  residential  waste nearly in half in 1988,
                   the first year of the program.  "The Big Muddle in Green
                   Marketing"  Fortune.  June 3, 1991, p. 93.

               b.  High Bridge. New Jersey -- Residents of High Bridge, New Jersey,
                   pay $200/year for stickers  good for 52 bags of garbage.  The cost of
                   a sticker for each additional bag thereafter:   $1.65. In 10 months,
                   the town cut its waste by 24%.  "The  Big Muddle in Green
                   Marketing"  Fortune.  June 3, 1991, p. 93.

               c.  Charlotte. NC ~ Recycled  newsprint:  Requires newspapers to
                   gradually increase the content of recycled paper in their newsprint
                   from 12% in 1991 to 40%  by 1997. Newspapers that don't meet the
                   required percentage must pay a tax of $15 a  ton every 3 months on
                   the amount that falls short unless  recycled newsprint isn't available.
                   "Rundown of Bills that Passed and Failed" Charlotte Observer July
                   21, 1991, p. 6-B.

Vlll.   Increased Permit Fees/Inspection Fees (Facilities)

               a.  Missouri ~ Bill in Missouri State Senate establishes fees and
                   penalties and mandates  that anyone emitting certain amounts of air
                   toxics must register with the State government and submit a plan for
                   reduction.  These amounts ^vould  be more stringent over time ~
                   anyone emitting more than 100 tons of HAP's in 1991, 50 tons in
                   1993 and 10 tons in 1994.  "Tough Missouri Air Toxics Bill May Die
                   Because of Power Struggle Toxic Materials News February 21,
                   1990  (Newsletter)

               b.  Nevada ~ The Washoe Board of Health approved new rules to limit
                   toxic air pollution from the industrial areas in Reno and Sparks.
                   New facilities releasing air toxics now must ap.ply for permits
                   requiring them to meet Federal standards, and pay fees based upon
                   their releases. Industries will be charged $3  for every pound of toxic
                   emissions released in an average day.  "State Briefs:  Nevada"  State
                   Regulation Report  July 25, 1990  (Newsletter)

               c.  Arizona -- The House voted 33-20 to strengthen enforcement of the
                   State's air pollution laws by increasing fines against polluters and
                   raising air quality permit fees.  House Bill 2490.  To Senate.
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                   "Legislature in Brief Arizona Republic  March 27, 1991.
                   (Newsletter)

               d.  Connecticut ~ The Environment Committee approved a package of
                   user-fee increases designed to raise about $4 million for an
                   environmental protection and conservation fund.  "Around the States
                   - Connecticut" Air Pollution Report April 2, 1991. (Newsletter)

               e.  Charlotte. NC -- Bills that passed: air pollution fines:  double the
                   maximum fine for violating air standards from $5,000 to $10,000 per
                   day.  "Rundown of Bills that  Passed and Failed"  Charlotte Observer
                   July 21, 1991, p. 6-B.

DC    Requirements for New Residential/Commercial Development

               a.  Ventura County. CA ~ The draft Air Quality Management Plan
                   proposes an "indirect-source  regulation" which seeks to hold
                   developers responsible for the pollution caused by new housing or
                   commercial projects. The measure would require developers  to
                   discourage the use of cars by limiting parking in their complexes and
                   to pay fees for mass transit.  "Air Pollution Plan Criticized as  Too
                   Tough"  Los Angeles Times  April 10, 1991 p. 1-B.

               b.  Long Island. NY ~ Planners  predict a new push for restrictions on
                   density of development to hold down traffic, and requirements that
                   new office buildings provide  van transportation for their tenants.
                   "Car Pools Ahead New Clean Air Act Provides For 'Gun-to-Head'
                   Plans  to Reduce Air Pollution" Newsdav  March  25, 1991, p.  O5.

               c.  Vermont and Florida - have enacted land use plans that encourage
                   energy efficiency. Such plans, for example, can require that housing
                   be built closer to work sites so that commuter travel is reduced. In
                   Florida, local governments failing to adopt a plan that complies with
                   State requirements stand to lose State funds.  "Good Policy, Bad
                   Times"  Totten, Michael and Jeffrey Tyrens.  State Government
                   News  January 1991, p. 30.

               d.  Los Angeles.  CA ~ The AQMD agreed to proceed with a
                   requirement for local governments to enact air quality programs that
                   would shorten commutes. For instance, a city could require new
                   housing to be near jobs and vice versa, or encourage development
                   near mass transit stations. "AQMD Approves Changes to Region's
                   Clean Air Plan"  Los Angeles Times  July 13, 1991, p. A-l.
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       Public Education
               a.  Boulder. CO - Grocery shoppers are being reminded that if they
                   don't buy it, they don't have to throw it away. The prerecycling
                   education program aims to encourage shoppers to buy products
                   packaged in readily recyclable materials such as glass and to buy
                   staples such as flour in large quantities.  "Wood-burning Ban Again
                   in Effect Today, Season's  17th Bad-Air Alert" Rocky Mountain
                   News. January 3, 1991, p.  19.

               b.  Clearwater. FL - Directed at students in Pinella and Hillsborough
                   County schools, the PSTA/HARTline Education Outreach Program
                   is centered  around a 15-minute video entitled "Your Ticket to the
                   Future." The program is designed to increase students' use of public
                   transit by making it more  acceptable.  For more info, call Roger
                   Sweeney at (813) 530-9921.  "Florida Educates Students in Hopes of
                   Picking Up Riders"  Urban Transport News  August 8, 1991, p. 128.
XI.    Emissions Trading/Offsets
               a.  Los Angeles. CA -- ARCO Products Co. argues that it should
                   receive credit for reducing pollution by selling cleaner-burning fuel.
                   ARCO officials said that if they receive credits for emission
                   reductions, they would use some of them to add processing units to
                   produce more clean gasoline.  ARCO wants credit for 534 tons/year
                   of hydrocarbons and more than 11,000 tons/year of CO based on
                   sales of its Emission Control Premium gasoline.  "ARCO Seeks
                   Pollution Tradeoff  Los Angeles Times May 22, 1991, p. 3A.

               b.  Los Angeles. CA - The Southern California Air Quality
                   Management District may establish a regional exchange in credits
                   for nitrogen oxides and hydrocarbon emissions.  That market,
                   expected to be formally proposed by the end of 1991, would allow
                   trades only within the 4-county basin regulated by the AQMD.
                   "Pollution-Credit Trading  May Mushroom"  Los Angeles Times July
                   19, 1991, p. D-l.

               c.  Camarillo. CA (Ventura Co.) ~ 3M Corp. has agreed to sell 78 toms
                   of "banked" pollution credits to Proctor and Gamble Co.'s Oxnard
                   plant. The agreement would allow P&G to emit up to 50 additional
                   tons/year of pollutants into  the air, with plans to double output of
                   Charmin and Bounty paper  products.

                   The pollutant trade-off is  based on a formula that requires some of
                   3M's credits to be retired  permanently. Thus, P&G will pay for 78
                   tons of the 104 tons in the 3M account but will receive only 50 tons
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                   in emission credits.  "3M Agrees to Sell Air-Pollution Credits"  Los
                   Angeles Times  July 23, 1991, p. 1-B.

               d.  More flexible market policies such as emissions trading can produce
                   reductions in several pollutants simultaneously.  Opportunities to
                   grant regulatory credit for multiple simultaneous emissions
                   reductions must be created if we expect such strategic private
                   investments to occur. One example for CO2 is the recently
                   introduced Cooper-Synar Bill (H.R. 5966).  This bill would create an
                   offset requirement for all new CO2 sources generating more than
                   100,000 tons per year. At the same time, it would establish
                   regulatory mechanisms for CO2 offsets  to be created by utilities as a
                   by-product of their acid rain  control strategy, by such manufacturers
                   that exceed the  Corporate Average Fuel Economy  (CAFE)
                   requirement, by planting trees, and by improving energy efficiency
                   "Markets for Environmental Resources."  Environmental Science
                   and Technology February 1991, p. 213.

               e.  Chicago. IL (National) ~ The Chicago  Board of Trade (CBOT) has
                   drafted a contract, subject to approval by the Commodities Futures
                   Trading Commission (CFTC), which would establish futures and
                   cash markets for SO2 emission allowances under the Emission
                   Allowance Trading Provisions of the CAA amendments of 1990.
                   Trading would commence by Jan.  1, 1993, in conjunction with
                   compliance deadlines.

                   The EPA would administer the CAA provisions by issuing
                   allowances to facilities emitting SO2. The CBOT would provide the
                   facility for trading these allowances.

                   Futures allowances would be traded at the CBOT in an open
                   market, allowing utilities to buy allowances or sell excess allowances
                   at a profit.  The key is to reduce emissions, while keeping costs at a
                   minimum. For some facilities, that will mean deferring capital
                   equipment purchases and playing the game of supply and demand.

                   CBOT proposes to:  1) Establish and administer allowance  transfer
                   programs via an annual auction and a direct sale; 2) Establish and
                   operate active cash markets allowing market participants to acquire
                   and dispose of allowances; 3) Establish and operate active futures
                   markets to provide accurate pricing signals so that informed
                   decisions can be made regarding emission control.  4) Establish
                   information systems to provide data necessary to evaluate the
                   allowance program at the least cost.
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                   The contract will be traded in units of 25 one-ton SO2 emission
                   allowances. Minimum price fluctuations will be in multiples of $1
                   per allowance.

                   In Phase I of the project, 110 co-fired electric power plants will be
                   allotted a set  number of permits, each allowing the holder to emit
                   one ton of SO2 in a year. The number of initial allowances granted
                   will be far less than the amount of SO2 currently emitted by these
                   plants.

                   Coal-fired power plants which commenced operations after
                   November 15, 1990, will not be given allowances and can continue
                   to operate only if they can buy allowances on the  open market, at
                   annual auctions, or directly from EPA.

                   Phase II, which begins in the year 2000, will impose emission limits
                   on less pollution intensive and  smaller plants.

                   A $2,000/ton penalty will be imposed on plants that  exceed their
                   held  allowances.  "Chicago Board of Trade to Tackle Emissions
                   Trading" Pollution Engineering  September 1991, pp. 45-46.
XII.   Adverse Publicity
               a.  Each month, the Los Angeles Times publishes a list of the 10 top
                   environmental penalties.  For example, one company, the Vons
                   Companies Inc., Huntington Park (supermarket chain) was
                   penalized $20,000.  The violation was failure to submit an AQMD-
                   approved ride-sharing plan. -Money to be spent on employee ride-
                   sharing incentives over the next 4 years.  "Top Air Pollution
                   Penalties" Los Angeles Times July 10,  1991, p. B-2.

               b.  Company:  SuperShuttle in Los Angeles (airport ground
                   transportation system) fined $75,000.  Violation:  Failure to submit
                   an AQMD ride-sharing plan, the firm agreed to retrofit 25 vans to
                   run on clean-burning propane fuel at a cost of $75,000.  "Top 1990
                   Air Pollution Penalties"  Los Angeles Times June 14, 1991, p. 2-B.

               c.  Company:  Union Bank Panorama City.  Penalty: $23,000.
                   Violation:  Failure to submit an AQMD-approved ride-sharing plan.
                   Money to be spent on employee ride-sharing incentives over a 1-
                   year period. "Top Air Pollution Penalties" Los Angeles Times
                   April 2, 1991, p. 2-B.
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                   Colorado - Motorists who have been avoiding Colorado's auto
                   emissions tests by tagging their clunkers with collector plates soon
                   may be forced off the road.  Owners of vehicles with collector plates
                   will have to buy a 5-year vehicle registration plate, compared to a
                   1-year registration for most vehicles. The special plate and
                   emissions exemption was originally designed to help owners or cars
                   that were at least 25 years old and used mainly in shows.  But too
                   many people abused the exemption by putting the plates on old
                   pickups and cars used for everyday driving.  It became a loophole
                   that let the worst polluters stay on the road. The  number of
                   vehicles with collector plates mushroomed from 3,000 in 1986 to
                   39,000 last  year and is expected to reach 54,000 this year. "Senate
                   OKs Smog Tests for Collector-Plate Cars Bill Targets Abuse of
                   Special Tags  by Owners Whose Clunkers Emit Clouds of Pollution"
                   Rocky Mountain News March 21, 1991, p.  12.
       Incentives for Tree Planting
                   Los Angeles. CA -- The AQMD is proposing to encourage more
                   tree planting in urban areas to shade buildings, cutting down on the
                   use of air conditioning equipment. In Pasadena, utility bill credits
                   are available for customers who plant trees.  "40 New Rules
                   Proposed to Clean Southland Air" Los Angeles Times  February 1,
                   1991, p. A-3.
XTV.   Incentives to Reduce Electric Demand
                   Beginning in 1984, EPA provided several States with a total of
                   nearly $3 million to develop future acid rain control strategies. The
                   47 projects funded provided the start for what became known as the
                   State Acid Rain (STAR) Program. This was a unique program
                   because it responded only to the threat of legislation, not to a law
                   already enacted.

                   One aspect of acid rain control the States are considering seriously
                   is energy conservation. A number of studies have been performed
                   to figure out how much energy, and consequently pollution, can be
                   cut by conservation.  STAR participants point out that conservation
                   has a short payback period and eliminates, or at least defers,
                   industry needs for capital construction of facilities.  "States
                   Preparing for Acid Rain Legislation" Chemical and Engineering
                   News  September 11,  1989, p. 20.
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               b.  San Diego. CA -- The San Diego County Air Pollution Control
                   District is proposing to require special water heaters to be installed
                   in homes. Solar heating equipment would be required on all new
                   swimming pools, hot tubs, and home water heaters.  Home that
                   already have other mechanisms to heat water would be required to
                   retrofit with solar  equipment on resale.  "Clean-Air Panel Unveils 47
                   Ways to Battle Smog" Los Angeles Times  July 30, 1991, p. B-l.

               c.  Los Angeles. CA - Officials with Southern California  Edison Co.
                   and the Los Angeles Department of Water and Power said major
                   programs would be started to induce consumers to buy energy-saving
                   products, to rely on alternative energy sources  such as solar and
                   geothermal, and to phase out burning oil for electric energy
                   production. Edison already is offering a $5 rebate per bulb to
                   customers who buy fluorescent light bulbs.  The DWP plans a door-
                   to-door campaign  later this year to perform energy audits in homes
                   and give away fluorescent bulbs to low income customers.

                   Edison has a major program in place offering incentives  to
                   developers who build homes that surpass State efficiency standards.
                   The utility is also working with Texas Instruments Inc. to develop a
                   rooftop solar cell that could provide one-third  of the energy for the
                   average home. "Utilities Will Reduce Emissions" Daily  News of
                   Los Angeles May 21, 1991, p. N-l.

               d.  California. Florida. Massachusetts - have led the nation  by
                   mandating increased energy efficiency through tighter  building
                   codes.  The standards range from requiring specific conservation
                   measures to setting-performance goals and allowing for maximum
                   flexibility by designers and builders.  The performance standards set
                   an energy budget for a building, which can be achieved through such
                   measures as more efficient lighting, heating, and  air. conditioning
                   equipment or better insulation.  "Good Policy,  Bad Times" Totten,
                   Michael and Jeffrey Tyrens. State Government News  January 1991,
                   p. 30.

               e.  According to the report by the Office of Technology Assessment
                   entitled, "Changing by Degrees: Steps to Reduce Greenhouse
                   Gases," policy options for reducing CO2  emissions from the building
                   sector include: tighter appliance efficiency standards and building
                   energy codes; utility company demand-side management  programs
                   to encourage building improvements; information programs such as
                   home energy audits.  "Economic Considerations Enter Fray Over
                   Global Climate Change Policies" Zurer, Pamela S.  Chemical and
                   Engineering News  April 1, 1991, p.  10.
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               f.   Greater efficiency in building can be accomplished through a
                   combination of stricter standards, better energy rating systems for
                   buildings, a consistent set of national guidelines for energy-efficient
                   mortgages (EEMS), and sliding-scale hookup fees (for gas or
                   electric service) tied to the building's energy performance.  If buyers
                   are rewarded for  purchasing more energy efficient buildings, either
                   through relaxed mortgage terms or rebates or hookup fees, they
                   won't mind  that the builder had to pass through the cost of more
                   insulation, good windows, caulk, better mechanical systems, and
                   careful construction.

                   With an energy-efficient mortgage, for instance, the bank adds
                   energy costs to the principal, interest, taxes, and insurance it
                   typically uses to determine how much to lend a borrower.  "How to
                   Improve Energy Efficiency" Issues in Science and Technology
                   Summer  1991, p.  88.

               g.  California -- Recently, a number of utilities have adopted a least
                   cost utility planning approach that ranks all energy sources,
                   including  improvements in  energy efficiency, by cost.   Under this
                   scheme, if an energy efficiency improvement costs less than a newly
                   constructed power plant  and supplies the same amount of energy,
                   then the  energy-efficient option must be implemented first.

                   A 1990 law commits California's utilities to "improve the
                   environment and  to encourage the diversity of energy sources
                   through improvements in energy efficiency  and development of
                   renewable energy resources, such as wind, solar, and  geothermal
                   energy" (CA Assembly Bill No. 3995 1990). Based on
                   recommendations from a diverse group of utilities, regulators,
                   agencies,  consumer groups, and environmental organizations who
                   call themselves the Collaborative, the California Public Utilities
                   Commission in August 1990 approved a 100% increase in  near-term
                   conservation budgets for investor-owned gas and electric utilities.
                   At the same time, the California Public Utilities Commission
                   approved regulatory reforms that tie the utilities' annual profits in
                   part to their success in delivering energy savings (CPUC 1990).

                   If the utilities do  well at conserving energy, they stand to increase
                   their profits for 1991 by as much as $60 million; poor performance
                   could yield penalties exceeding $30 million.

                   At least 17  States have adopted Statewide "least-cost conservation
                   mandates comparable to California's; at least 6 have  created  ,
                   analogous conservation-incentive regimes for their utilities and many
                   more are considering both  measures.  "Statehouse Effect Combats
pjh.oi                                     59

-------
                   Greenhouse Effect"  Cavanaugh, Ralph C. and Arthur H. Rosenfeld.
                   The Journal of State Government. Vol. 63, p. 96.

               h.  According to William Reilly, EPA's "green lights" program aims to
                   decrease energy used for lighting.  Lighting accounts for 1/4 of the
                   U.S.'s energy needs, and 90% of all lighting is associated with
                   commercial and industrial plants. Under the  green lights program,
                   some 30 major companies will use new energy saving technologies to
                   meet their lighting needs.  "Economic Incentives for Environment
                   Protection"  Chemical and Engineering News.  March 25, 1991, p.
                   16.

               i.   Canada. Demand management has the potential to yield a
                   substantial  amount of power at a cost that is less than or
                   comparable to building new generating facilities. Ontario Hydro's
                   goal is to save 4.5 million kilowatts by 2000 through demand
                   management.  "Changing Attitudes About the Environment in the
                   1990s:   Sixth Canadian Environmental Government Seminar"
                   Journal of Air and Waste Management Association April 1991.
                   Volume 41, No. 4., p. 425.

               j.   Washington State. A Washington law, enacted in 1980, gives
                   utilities an  explicit, monetary incentive to experiment with new types
                   of resources.  The law directs the Utilities and Transportation
                   Commission to give a higher rate of return on equity on a utility's
                   initial investment in energy efficiency, renewable energy, and
                   cogeneration (known as the "equity kicker").  The purpose of the
                   higher profits is to give the utility a greater incentive to pursue
                   alternative  ways of meeting energy demand that are cheaper and
                   more environmentally benign that traditional  generating plants.
                   Through the extra profits, the utility receives part of the savings
                   from the cheaper resource.

                   The second incentive is a deduction from public utility tax.  A utility
                   can deduct from its gross income the cost of production  of
                   alternative  resources. The lower taxes are reflected in the utility's
                   rates, so the customers receive the benefit of this tax deduction.

                   The new effect of these 2 incentives is this: Stockholders receive an
                   incentive to choose alternative resources, and this incentive is
                   financed in part by higher utility bills  and in part by lower State tax
                   collections.  However, utility participation in the tax deduction
                   incentive has been relatively low.
pjh.Ol                                     60

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                   After 10 years of testing the equity kicker, Washington has restricted
                   its use through a renewed act in 1990. Cogeneration and renewable
                   resources no longer qualify, and conservation programs are limited
                   to new residential construction and those that target the elderly and
                   low income.

                   Glenn Blackmon suggests that utilities should be allowed to
                   capitalize interest and earnings on conservation investments not yet
                   included in rates.  This mechanism would be similar to the
                   allowance for funds used during construction (AFUDC) on
                   construction projects.  Once a power plant goes on-line, the utility is
                   allowed to recover both its construction cost and the accumulated
                   interest on its investment.  Similarly, regulators could establish an
                   allowance for funds used to conserve energy (AFUCE) that would
                   accumulate until the utility's next general rate case.  "Conservation
                   Incentives: Evaluating the Washington State Experience."
                   Blackmon, Glenn.  Public Utilities Fortnightly  January 15, 1991, pp.
                   24-27.

                k.  Milwaukee. WI  ~ Venu Gupta, business  operations manager for the
                   Milwaukee Public Library System, designed a retrofit lighting system
                   using 32-watt fluorescent lamps and high-frequency electronic
                   ballasts in the library systems' fluorescent lighting fixtures. The
                   result has been  energy cost savings of $55,000/yr.

                   The project included  installing 23,000 Sylvania lamps and 11,500
                   Magnetek Triad electronic ballasts  in more than 10,000 fixtures at
                   13 libraries and was completed in 4-1/2 months.

                   Wisconsin Electric offered a rebate for the purchase of energy-
                   saving electronic ballasts, because its high-frequency operating
                   characteristics make the ballast more efficient and optimize the
                   performance of the fluorescent lamps. "Milwaukee Libraries
                   Retrofit Light Systems"  American City & County June 1991, p. 26.

                1.  Virginia Beach.  VA -- The City Council has approved the
                   installation of an ice-based air conditioning and cooling system to its
                   new judicial building  and to an addition to its jail. The system,
                   known as cool storage,  makes ice at night when electricity costs are
                   lowest, and stores it in tanks to cool buildings the next day.  Based
                   on current electrical rates, Virginia Beach taxpayers will save about
                   $1.6 million in cooling costs during the 20-year life of the
                   equipment, which will be added to  the city's Municipal Center
                   central plant on nearby vacant land. 60 ice tanks will be partially
                   buried and shielded by a brick wall. "South" American City and
                   County June 1991, p. 26.
pjh.Ol                                     61

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                                                                          DRAFT
               m. Brenham. TX - Wholesale customers of the Lower Colorado River
                  Authority (LCRA) have a unique component to their electric rate
                  schedules which offers substantial opportunities for energy cost
                  reduction through load or demand management. LCRA rate
                  schedules contain the typical billing components of all utilities:
                  customer charges, energy charges, consumption charges and,  for
                  commercial customers, demand charges.  But LCRA's wholesale
                  customer demand charges fall into 2 categories:  coincident peak
                  (CP) and non-coincident peak (NCP).

                  The CP charge is the fee per kw of demand charged to the
                  wholesale customer at the time of LCRA's total system peak
                  demand.  LCRA has a summer and a winter CP charge, the summer
                  charge being ~$2.50/kw higher than the winter CP charge. By
                  contrast, the NCP charge is less than $2/kw.  The incentive for
                  demand control during coincident peaks is over 4 times as great as
                  demand reduction during non-coincident peak.

                  The City of Brenham is one  of many LCRA wholesale customers
                  that has installed a load management/peak monitoring system that
                  tracks LCRA's load continuously, as well as tracking hourly peak
                  reports.  By monitoring weather data along with LCRA loads, city
                  management attempts to forecast LCRA system peaks. When a
                  peak is predicted, the city notifies participating industrial  customers
                  via a paging system.  Industrial users can respond by shutting down
                  or cycling off nonessential equipment, usually for a 10-30  minute
                  cycle.

                  Though participation among industrial customers is voluntary, the
                  incentive  to participate is monetary.  If management correctly
                  predicts system peaks and lowers Brenham's percent of CP, the
                  city's CP demand charge is less, and these savings are allocated to
                  the participating industrial customers.  Blue Bell, one of 12
                  participating customers, saved -$40,000 in utility costs during the
                  summer billing cycle (June-September) last year by shedding load
                  during coincident peak. "Municipal Load Shedding Yields Big
                  Savings"   Texas Town and City, p. 12.  (date?)

               n. Osage. Iowa ~ Wes Birdsall, manager of the Osage Municipal
                  Utility launched an energy conservation program. He used IR
                  scanners to show residents where their homes were leaking heat. In
                   1975, he set up new  insulation specifications.  The utility gave away
                  thousands of dollars worth of energy-saving devices, like water-
                  heater jackets and low-flow shower heads, as well as shade trees
                  from its nursery. The town reduced its energy use, reduced rates by
                   19% and, by making energy-saving offers, has become a magnet to
pjh.oi                                    62

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                                                                           DRAFT
                   new businesses. "Our Town: Americans Take an Energy Lesson
                   from this Farm Belt Community" Howard, Beth. Omni  May 1991,
                   p. 12.

               o.  Osage. Iowa ~ Got together with their municipal utility company
                   and decided a move to efficiency was a move to profitability. What
                   happened was a small-town success story as Osage actually prepaid
                   its debt and accumulated a $2 million budget surplus.

                   Osage's municipal utility helped its  citizens weatherize their  homes.
                   The result:   energy rates were cut 5 times in 5 years and average
                   consumer bills were reduced to half of those found on the State
                   level. The  low rates attracted 2 large businesses to the area. And
                   with over $1,000 per household of tax-free savings on energy bills
                   recirculating on Main Street, the utility, the people, and the
                   environment have prospered.  Even better news is that what was
                   done in Osage can be and  is being  done in similar forms around the
                   nation. "The 4,000 Townspeople of Osage, Iowa Had a Bright Idea"
                   Budzinski, Mike  Current Municipal Problems,  p. 310.

               p.  New York ~ Incorporating the environmental cost of burning fossil
                   fuels into the power planning process is a crucial step. The  State  of
                   New York is pioneering this approach.  Under an innovative
                   program, a competitive market is being set up whereby independent
                   power producers must bid  against each other for power supply
                   contracts. Suppliers planning to burn fossil fuels are required to
                   add nearly  1 cent/kwhr to  account for other environmental costs.
                   "Communication:  A Global Agenda for Clean Air" Energy  Policy
                   July/August 1990, p. 584.
XV.   Environmental Cities Coalition
                   Minnesota ~ Several Minnesota cities have grouped together to
                   form a Stateside Environmental Coalition to encourage the State to
                   work on environmental problems and issues.  Charter members of
                   the group are St. Paul; Minneapolis; Duluth; Mankato; Robbinsdale;
                   Shoreview; St. Louis Park; Egan; Flacon Heights; Golden Valley;
                   Inver Grove Heights; Minnetonka; Plymouth; Arden Hills; Coon
                   Rapids; and Cottage Grove.

                   Cities in the Coalition will tackle issues such as mandatory recycling,
                   bans on the sale and/or use of high-phosphorous lawn fertilizers and
                   dish detergents, energy conservation, air quality, global warming,
                   transportation, regulation of distribution of nonrecyclable products,
                   etc. Members are not required to adopt regulations on every issue
                   of join every action  the group takes.
pjh.oi                                     63

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                                                                            DRAFT
                   Coalition members will promote Statewide environmental protection
                   legislation, perhaps presenting some of their local ordinances as
                   model legislation for the State. St. Paul Councilman Bob Long
                   chairs the group. "Activities"  Minnesota Cities  February 1991,
                   p. 33.

               b.  Sacramento. CA --  A conference of elected officials slated to meet
                   to focus on specific issues of air pollution and to come up with a list
                   of 5 to 10 ideas to try and adopt in the represented jurisdictions.
                   Among some of the ideas being considered are:  devoting 5% of all
                   public works budgets to mass transit; locating 1/2 of all new
                   developments within 1/4 mile of transit stations; requiring private
                   companies to charge their workers for parking; and using that
                   money to support transit.  For info call 443-1033. "Tired  of Talk,
                   Environmentalists Ask Officials to Set Goals" Sacramento Bee
                   March 15,  1991, p. B-l.
pjh.oi                                    64

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  Session I: Innovative
Uses of Taxes and Fees

-------
                     John Glenn
Louisiana Environmental Scoring System/Property Tax Exemptions
        Louisiana Department of Environmental Quality



                  Baton Rouge, Louisiana

-------
                  LOUISIANA ENVIRONMENTAL SCORING
                  SYSTEM/PROPERTY TAX EXEMPTIONS

                                     by

                                 John Glenn
                 Louisiana Department of Environmental Quality
                           Baton Rouge, Louisiana
I.     INTRODUCTION

      A.     Louisiana. 1990

            1.  46th in per capita income - 1st in toxic emissions

            2.  Department of Environmental Quality (DEQ) fining companies -
               Department of Economic Development (DED) giving same companies
               giving same companies millions in tax exemptions

            3.  Goals and policies of Departments inconsistent

      B.     History

            1.  August 1990, Board of Commerce and Industry (BCI) Board Meeting -
               CITGO application

            2.  Governor freezes all tax exemptions until DED and DEQ can come up
               with unified policy recognizing the need for economic growth and
               environmental protection

            3.  August 1990, negotiations for rulemaking begin

            4.  December 19, 1st Draft Emergency Rules and Regulations go into
               effect

            5.  December 27, 1st BCI meeting under emergency rules and regulations

            6.  August 20,  1991, "Environmental Scorecard" promulgated

-------
II.   ENVIRONMENTAL SCORECARD FORMULA




     A.    Environmental compliance record




     B.    Emissions per worker




     C.    Bonus points, 5 categories




     D.    Conditions for environmental review






III.   MEASUREMENTS OF EFFECTIVENESS




     A.    Tax dollars returned to local governments




     B.    Emission reduction pledges by 1996






IV.   CONCLUSIONS




     A.    Process very important




     B.    Many improvements in scorecard possible




     C.    Economic based incentives work

-------
                   LOUISIANA ENVIRONMENTAL SCORING
                   SYSTEM/PROPERTY TAX EXEMPTIONS

                            Environmental Scorecard

                                      by

                                  John Glenn
                  Louisiana Department of Environmental Quality
                             Baton Rouge, Louisiana
Between August of 1990 and August of 1991, Louisiana developed the Rules and
Regulations for an "Environmental Scorecard." The scorecard provides a formula which
links companies environmental records to the percentages of industrial tax exemptions
that they qualify for. The primary purposes of the scorecard are to provide economic
incentives to companies to reduce criteria air pollutants and toxic emissions, and to
follow the State's environmental regulations.

The scorecard also creates an economic development policy that favors labor intensive,
pollution free or low emitting industries over those which create larger amounts pollution
and fewer jobs,  the citizens of Louisiana and especially parishes (counties) most heavily
impacted by industry are the benefactors of these policies.

-------
             OBJECTIVE
* DEVELOP ECONOMIC INCENTIVES FOR POLLUTION
 PREVENTION AND ENVIRONMENTAL COMPLIANCE
              STRATEGY

* CONTINUE TO IMPLEMENT AND REFINE
 INDUSTRIAL TAX EXEMPTION PROGRAM
* DEVELOP RULES AND REGULATIONS FOR
 POLLUTION AND RECYCLING TAX PROGRAMS

-------
         FINAL
 RULES AND REGULATIONS
          FOR
INDUSTRIAL TAX EXEMPTION
       PROGRAM
     PROMULGATED
     AUGUST 20,1991

-------

-------
          Point deductions
0-$3000
$3001-
$10,000
$10,001-
$15,000
             amount of penalty
$15,001-
$20,000

-------
     Emissions per worker
Pounds of emissions
    per worker
iPoints
received
    3  '"" "''''Nil*;-. :•.-.;.•?.•«!•; :;•;. '••;•,•:.. --iv








    !? 	"""' "" "'  '"' J

-------

-------
           Bonus points
  For DEQ approved
 Emissions Reduction
Plan -15 possible points

-------
Bonus points
     Develop recycling
         systems -
     5 possible points

-------
         Bonus points
     Recycling companies or
manufactured consumer product
       10 possible points
                              V99*
                              '///*

-------
Bonus points

-------
         Bonus points
diversify the state's
 economic base -
 10 possible points

-------
    , •• •• -"f -''I';*:,-   %•'   ""''" , '*,' -/, "'•?"••',   "-  -
 ',-    -.-*,'',-';*     -$--      -,  --, '  't- I'-   '"  i  '-  -,  -
 "/>'"l '  '•:-  ':•:'"' /,  :" 'i:-'  '-> '"  >^"-^
 1 'm i f""i% $'* <:'tfr <.•; 'V, '*/ V; Jj /;1 S,^ Vrr^iVv' /:
^'/T:  t"f?':i V'"^ ;^>' ^ ^ *-'"V r'J^?J/ > *'v-  4
•• r»f


-------
Conditions for full environmental review
                             m

-------
Conditions for full environmental review
 a history of environmental problems

-------
a history of major
catastrophes
indicating
       >nce

-------
Conditions for full environmental review
  failure to follow
  national
  environmenta

-------
 AMOUNT OF PROPERTY AND SALES TAXES
 RETURNED TO PARISH GOVERMENTS DUE
 TO INDUSTRIAL TAX EXEMPTION PROGRAM
 •^^••I^MBHHBHMMI
MILLIONS OF DOLLARS
            12/27/90-12/18/91
     PRE-CITGO DECISION • POST-CITGO DECISION

-------
  PROJECTED AMOUNT OT PROPERTY AND SALES TAXES
     RETURNED TO PARISH GOVERNMENTS DUE TO
 INDUSTRIAL TAX EXEMPTION PROGRAM DURING FY 91-92
30
25
20
15
10
 0
                  FY'91-'92
            MILLIONS OF DOLLARS

-------
 PROJECTED EMISSIONS REDUCTIONS RESULTING
      FROM INDUSTRIAL TAX EXEMPTION
         PROGRAM DURING FY '91-'92
50
40 -
30 -
20 -
10 -
                FY'91-'92
  MILLIONS OF POUNDS OF TOXIC EMISSIONS

-------
 EMISSIONS REDUCTIONS RESULTING FROM
   INDUSTRIAL TAX EXEMPTION PROGRAM
35
30
25
20
15
10
   12/27/90 - 5/30/91  6/1 /91 - PRESENT  TOTAL TO DATE
  MILLIONS OF POUNDS OF TOXIC EMISSIONS

-------
                  Deborah Gordon
Drive Plus: Sales Tax/Rebate Based Upon Vehicle Fuel Efficiency
               Union of Concerned Scientists



                    Berkeley, California

-------
EPA INNOVATIVE REGULATORY STRATEGIES  WORKSHOP

SESSION  I:
  INNOVATIVE  USES OF TAXES AND  FEES FOR MOBILE SOURCES
                                DRIVE PLUS:
  SALES TAX/REBATE BASED UPON VEHICLE EFFICIENCY AND EMISSIONS
                                     by
                               Deborah Gordon
                          Senior Transportation Analyst
                         Union of Concerned Scientists
I. Societal Problems Associated with Motor Vehicles
      A. Air Pollution
             1. Half of ozone-forming emissions of HC and NOX from vehicles
             2. 70-90 percent of local CO emissions from motor vehicles
             2. 25 percent of U.S. carbon dioxide emissions from vehicles
      B. Excessive and Undiversified Use of Oil
             1. U.S. imports half of the 17 million barrels of oil a day used
             2. Over two-thirds of U.S. petroleum use devoted to motor vehicles
             3. Oil accounts for 97 percent of fuel used for motor vehicles
      C. Motor Vehicle Injuries and Fatalities
             1. 14.5 million highway motor vehicle accidents annually
             2. Half million severe injuries annually
             3. 2.7 million moderate injuries annually
             3. 50,000 motorist fatalities  annually

II. Current Regulatory Requirements for Motor Vehicles
      A. Energy Efficiency - CAFE standards
      B. Emissions - Clean Air Act
      C. Safety - NHTSA Crash Tests

III. DRIVE Plus Program Design
      A. Feebate components
             1. carbon dioxide
             2. vehicle emissions
      B. Revenue neutral/self-financing
      C. Sticker on vehicle - consumer information component

IV. Benefits of DRIVE Plus Incentive Programs
      A. Mutually reinforcing of current standards
      B. Creates incentives for consumers to buy cars that manufacturers must sell
      C. Provides incentives to do better than standards require
      D. Coordinates design of multiple vehicle attributes (efficiency, safety, emissions)
      E. Provides information to consumers that is currently hidden in the market
      F. Backs information with rebate which makes information more credible to buyer

V. The Prospects of Consumer Incentive Programs
      A. Status of DRIVE Plus legislation in California
      B. Proposals in other states and in federal legislation
      C. Ontario, Canada Law
      D. National Energy Strategy

-------
EPA  INNOVATIVE REGULATORY  STRATEGIES WORKSHOP
SESSION I:
   INNOVATIVE USES OF TAXES AND FEES FOR MOBILE  SOURCES
                                DRIVE PLUS:
  SALES TAX/REBATE BASED UPON VEHICLE EFFICIENCY AND EMISSIONS
                                     by
                               Deborah Gordon
                          Senior Transportation Analyst
                          Union of Concerned Scientists

       DRIVE Plus (Demand-based Reductions In Vehicle Emissions PLUS
Improvements in Fuel Economy) is a proposal to create self-financing tax incentives in
California for consumers to buy cleaner and more fuel-efficient cars and trucks. Sales tax
surcharges on vehicles with higher emissions of criteria pollutants and carbon dioxide
(CC»2) would pay for sales tax reductions on more efficient and lower-emitting cars and
trucks. The proposed incentives help vehicle manufacturers meet sales goals contained in
existing federal and state emissions and fuel economy standards while coordinating energy
and environmental goals. DRIVE Plus would also encourage manufacturers to market and
consumers to purchase vehicles that are cleaner and more efficient than the standards
require. The program provides efficiency and emissions information to consumers at the
point of purchase, helping them make better purchase decisions. DRIVE Plus hold the
promise of being politically feasible and it imposes no net new taxes and requires no new
appropriations from the state general fund.

       DRIVE Plus was passed by the California Legislature by a large majority in 1990.
However, it was vetoed by then-Governor Deukmejian on his last day in office. The bill
was reintroduced in 1991, but withdrawn from consideration late in the session.
Reintroduction in 1992 is expected.

       Although DRIVE Plus has not yet become law in California, it is an innovative
program that other states and countries are quickly moving to emulate. Legislators in five
other states have introduced similar legislation while at least eight other states are
considering the program. The province on Ontario, Canada has already enacted a revenue-
positive version modeled after DRIVE Plus and other countries such as the U.K. are eager
to follow suit.

-------
  EPA INNOVATIVE REGULATORY STRATEGIES WORKSHOP
                       DRIVE PLUS:
Sales Tax/Rebate  Based Upon  Vehicle Fuel Efficiency and Emissions
                               by
                          Deborah Gordon
                     Senior Transportation Analyst
                     Union of Concerned Scientists

-------
        DRIVE PLUS
               stands for
Demand-based Reduction In Vehicle Emission
               PLUS
      Improvements in Fuel Economy

-------
                                Recently Adopted CARB New-Car Emissions Standards
                                                                                                                        Page :;

NMO<;
NOx
CO

Model
Yenr
1994
1995
1996
1997
1998
1999
2(M)()
2001
2002
2003
Car Types*
Convert
-tlonal
Conven
-llonal
TLEV
Standards <
039
04
34
0.25
0.4
3.4
0.125
0.4
3.4
1,15V
ULEV
ZICV
crams/mile)
0.075
0.2
3.4
0.04
0.2
1.7
I'hnse-ln Schedule (% of Fleet) for Kiich I)

10%










80%
85%
80%
73%
48%
23%





10%
15%
20%










-
25%
48%
73%
96%
90%
85%
75%




2%
2%
2%
2%
5%
10%
15%
0.0
00
0.0
t€





2%
2%
2%
5%
5%
10%

Meet Average
NMO<;**
0.250
0.231
0.225
0.202
0.157
0.113
0.073
0.070
0068
0.062

Com- I = Conventional cars as of 1991, Conv 2 = Conventional cars as of 1994, TLEV = Transitional Low-Emission Vehicle, LEV = Low-
 frnission Vehicle. ULEV = Ullra-Low-Emission Vehicle, ZEV = Zero-Emission Vehicle
 NNHKi = Non-methane nf^jmic gases, which arc (he lypc til liydiocarhon emissions icgiihilctl hy Ihc Air Resources Moard.

-------
   DRIVE +  CO2 Feebates  ($22/ton)
 400
 200-
   0
 -200-
   -400H

j  -600H
Q
   -800H
-1000-
-1200-
-1400-
-1600
        o   15
20   25   30   35
       MPG
                             40  45
                            1000
                           -900

                           -800

                            700

                           -600

                           -500

                            400

                           -300

                           -200
                            100
                                             (D
                                             
-------
                                                                                                   Pagel
 $2.500
 $2,000
 $1,500
 $1.000
  $500
    $0
 ($500)
($1,000)
                                     DRIVE* Credits and Surcharges
                               Based on CARB's New Emission Standards
                                             (excluding CO2 factor)
           1995
1996       1997       1998

 • Conventional H TLEV      D LEV
Model Year
  1999
2000      2001        2002

M ULEV       n ZEV
2003

-------
                                                                                                                            Page '<
                                              DRIVE+ Credits and Surcharges
                                           Applied to CARB New-Car Standards
                                                     (excluding CCh factor)

Cars*
Conv 1
Conv 2
TLEV
LEV
ULEV
ZEV
Model Year
1995
•SI.IWH
-$36
$205
$741
$1,182
$2,1173
1996
•$1.110
-$48
$193
$729
$1,170
$2,061
1997
•SI.2HH
-$219
$22
$558
$1,000
$1,891
1998
-si. .fin
-$439
-$199
$337
$779
$1,670
1999
-$1.605
-$634
-$393
$143
$585
$1,476
2000
-U.874
•SHI 2
•fi72
-$35
$406
$1,297
2001
-$1.^27
-$866
-1625
-$89
$353
$1,244
2002
-$1.949
-S8RB
•$f>47
-$lll
$331
$1,222
2003
•S2.0JK
-$976
-$7.16
-$199
$242
$1,133
            Note:   Amounts shown in sm;ill italic print arc for c;ir types ili;il will he pluiscd out iiiulcr ('iililornia Air Ucsources Hoard regulations.
                  The amounts arc those tliat would apply if Uic CARD allowed manufacturers to sell these car types.
Conv  I = Conventional cars as of 1991, Conv 2 = Conventional cars as of 1994, TLEV = Transitional Low-Emission Vehicle, LEV = Low-
  Emission Vehicle. ULEV = Ultra-Low-Emission Vehicle, ZEV = Zero-Emission Vehicle

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         EXAMPLE OF DRIVE+ STICKER
  STATE   OF   CALIFORNIA
     PI
       MODEL: 199O BRAND X CAR

      FEATURES:XX CUBIC INCH ENGINE.
             X CYLINDERS.
             CATALYTIC CONVERTER.
             CALIFORNIA EMISSION CONTROL SYSTEM
 TOTAL EMISSIONS RATING
 % CLEANER THAN AVERAGE*:
                 DRIVE* REBATE = C$ 316 )
 CO2 'GREENHOUSE-
 EMISSION RATING
 % CLEANER THAN AVERAGE*:
  iS3*is3iBi«C
                 DRIVE* REBATE = CS 138
                   .TOTAL REBATE s
Emission ratings adjusted to cover program administrative costs.

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                      FINANCIAL INCENTIVES TO IMPROVE VEHICLE FUEL EFFICIENCY
                                               1991 LEGISLATIVE PROPOSALS
LSGlSLATlVe
PROPOSAL
REVfi&g
N5VTRAI.
(Yof N)
STATE POLICIES:
CA DRIVE- SB431
NRDC DRIVE- 2
Maryland H 685
Mass. HB 2086
Maine HP 1709
Arizona HB 2425
Wisconsin AB 577
Y
Y
N
Y
N
Y
N
FEDERAL;: POLICIES:
Scheuer HR 1583
Gore S 201
Bennett HR 51
Wlrth S 741
Synar HR 2960
Dlngell .
Y
N
N
Y
Y
N
INTERNATIONAL POLICIES:
Ontario Retail
Sales Act of 1991
N
ACROSS (A>
oa WIWN m
size CLASSES
A
A
A
W
W
W
N/A
W
W
A
A
A
A
A
CONSUMER
(NCENTJV8
tVf»6 *{4}
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
GT
N/A
N/A
N/A
ITC
GT
$CHAtt»AGE
{NCKNTCV8
tNCu»et>
N
Y
N
N
N
N
N
N
N
N
N
N
N
N
VEHICLE
ATTRIBODEa
INCtUOfiO <3>
TCO2/UE
LCO2/UE
MPG
MPG
MPG
MPG/UE
MPG
TC02
MPG
MPG
TC02/S
LCO2/VF/AF
MPG
MPG
StJCKER
PtACCDON
VSHtetB
Y
Y
N
Y
Y
Y
N
Y
N
N
Y
Y
N
Y
pnoposeo(C)
o*
eNA«S0<«>
p
NO BILL
P
P
P
P
P
„• P
P
P
P
P
NO BILL
E
1. „. .„.». C OfcU E NT 6~«. — 1
Legislature passed but Governor vetoed
in 1990; Reintroduced in 1991.
Increases registration fees on all
vehicles.

No action in 1991; to be reintroduced
in 1992.

No action in 1991; lo be reintroduced
in 1992.
Guzzler fee of $20/mpg on models below
the fleetwide average fuel economy.

Part of omnibus legislation in the
World Environment Policy Act.

Part of an omnibus Energy Policy
proposal in Senate.
Feebate based on volume-adjusted,
fuel-cycle carbon dioxide emissions.

Separate schedule for cars and sport
utility vehicles; revenue generating.
NOTES:
1. Consumer incentives inlcude: "C" - cash; "ST" - sales tax rollback; "IT" - income tax deduction; "GF" -  gas guzzler fee assessment.
2. Manufacturer incentives include; "GT" - gas guzzler tax; "ITC" - investment tax credits.
3. Vehicle attributes  include: "TCO2" - tailpipe carbon dioxide emissions; "LCO2" - life-cycle  (fuel production, transmission,  and  combustion) carbon
   dioxide emissions; "S" - safe  vehicle design; "UE" -  urban air emission levels of hydrocarbon, nitrogen oxides, carbon monoxide, and particulates;
   "AF" - use of alternative fuels; "VA" - volume adjusted  for  vehicle size; and "MPG" - vehicle fuel economy.
"N/A" means not applicable.
                                                               12/10/91

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   Kevin McCarthy
 Alternative Fuels Programs
Office of Legislative Research



   Hartford, Connecticut

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        EPA INNOVATIVE REGULATORY STRATEGIES WORKSHOP

          Alternate Fuels Programs in Connecticut
                     KEVIN E. MCCARTHY
                     Associate Analyst
                Connecticutt General Assembly
               Office of Legislative Research
I.  Genesis
II. Legislative History
      A. Draft Bill
      B. Committee Action
III. PA 91-179
      A. Tax Benefits for Alternate Fuel Vehicles
         1. Corporate Business Tax Credit
         2. Sales Tax Exemption
      B. Other Provisions
         1. Use of tunnels by alternate fuel vehicles
         2. State agency purchase preference
IV.  Future prospects
V.   Policy issues
      A. Choice of alternate fuel technologies
      B. Utility regulation of alternate fuel sales
V.   Related legislation and state activities

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CONNECTICUT'S INCENTIVES FOR NATURAL GAS VEHICLES
    In the Spring  of 1990, the ranking member of the Energy
and Public Utilities  committee  of  the  Connecticut  state
legislature suggested that  the  committee  investigate  the
possibility  of  providing   state   incentives  to  promote
alternative  fuel  vehicles.   Following  usual  legislative
practice, the committee  established  a  task force to study
the  issue.  The  task  force,  consisting  of  legislators,
utility  and  business   representatives,   and   regulatory
agencies, met over  the  summer.  The task force recommended
that the state  provide  tax  incentives  for alternate fuel
vehicles and eliminate  certain regulatory barriers to their
use.

    This concept was  introduced  as  a  bill in the regular
1991 session. As  drafted,  the bill provided a 10% business
tax  credit for  expenses  associated  with  alternate  fuel
vehicles and exempted  such  vehicles  and related equipment
from the sales  tax.  The  draft bill also allowed alternate
fuel vehicles to  use  the  state's  one  highway tunnel and
allowed the administrative  services  department  to  give a
price preference of  up  to 10% for alternate fuel vehicles.
The  Energy Committee  reported  the  bill  to  the  Finance
Committee, which imposed  a  1993  sunset  date  for the tax
benefits and limited  its  provisions to vehicles powered by
natural gas. The  bill  was  adopted  and  went  into effect
October  1,  1991.  Several  companies  have  already  taken
advantage of its provisions.

    The bill's sponsor  anticipates  introducing legislation
this year that  would  extend the bill's sunset date.  There
also may be  an  effort  to extend the tax benefits to other
alternate fuels.  Given the state's fiscal climate, the fate
of these proposals is uncertain.

    Among the policy  issues  raised  by  the  bill are: (1)
whether the state should support specific technologies given
the infrastructure needed  for  certain  alternate fuels and
(2) how the  state  should regulate sales of alternate fuels
by utility companies.

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                              ENERGY AND PUBLIC UTILITIES COMMITTEE
 PA 91-179—sHB 6740
 Energy and Public Utilities Committee
 Finance, Revenue and Bonding Committee
 Judiciary Committee

 AN ACT ENCOURAGING THE USE OF
 VEHICLES POWERED BY CLEAN
 ALTERNATIVE FUELS

 SUMMARY: This act provides a credit against corpo-
 rate business taxes of 10% of the expenses of equipment
 associated  with  natural gas powered vehicles.  It also
 exempts natural gas vehicles, equipment to convert vehi-
 cles to natural gas. and natural gas filling station equip-
 ment  from  the sales tax. The credit applies to expenses
 paid or incurred in income years that start on or after
 January 1.  1991  but before January 1.  1993. The exemp-
 tion applies to  sales on or after October  1,  1991  but
 before January 1. 1993.
  The act allows natural gas vehicles  to use tunnels on
 highways. Under prior law. this was  a  class C misde-
 meanor, subject  to a fine of up to $500 and imprison-
 ment  for up to three months. (The one  highway tunnel in
 the state  is  on the Wilbur Cross Parkway).
  The act allow-s  the commissioner of administrative ser-
 vices  to give a  price preference of up  to  10% for  (1)
 vehicles powered by natural gas or (2) vehicles powered
 by other fuels and the equipment to convert them to use
 natural gas. either exclusively or with  another fuel.
 EFFECTIVE DATE: October 1. 1991
FURTHER EXPLANATION

Business Tax Credits

  The act creates a credit against various business taxes
.*qual to 10% of certain costs associated with natural gas
vehicles. The credit applies to expenses incurred or paid
for:
  I. equipment that is incorporated or used in a com-
    pressed natural gas (CNG) filling station,
  2. equipment that is incorporated or used in the con-
    version of a vehicle to natural gas or to natural gas
    and another fuel, and
  3. the added cost of buying a vehicle that is powered
    by natural gas only.
  Filling station equipment includes compressors,  stor-
ige cylinders,  associated framing, tubing and  fittings.
valves, fuel poles, and fuel delivery lines. The credit also
applies to the costs of installing this equipment.
  The  vehicle conversion  equipment  includes storage
rylinders, cylinder brackets, regulated mixers, fill valves,
pressure regulators, solenoid valves,  fuel gauges,  elec-
tronic ignitions, and alternative fuel  delivery  lines. In
order to be eligible for the credit, the converted vehicle
must meet generally accepted standards. These standards
include, among others, those set by the American Gas
Association, the  National Fire Protection Association.
the American National Standards Institute, the Ameri-
can Society of Testing Materials, and the American Soci-
ety of Mechanical Engineers.
  The added cost of buying a natural gas vehicle is the
difference between its  purchase cost  and the manufac-
turer's suggested  retail price of a comparably equipped
vehicle not powered by natural gas.
  Any credit that cannot be  used in a  tax year can be
carried over to  the next three tax  years.  The credit
applies to  business taxes imposed on corporations, air
carriers, railroad  companies,  and utility companies. A
company cannot  claim the credit against more than  one
tax for the same expenditure.

Sales Tax Exemption

  The act exempts the following from the sales and use
taxes:
  1. new vehicles powered exclusively by natural gas;
  2. vehicle conversion equipment, as described above:
    and
  3. CNG filling  station equipment, as described above.
 PA 91-248—sSB 810 .
 Energy and Public Utilities Committee
 Government  Administration and Elections Committee
 Appropriations Committee

 AN ACT TO ENCOURAGE THE DEVELOPMENT
 AND IMPLEMENTATION OF ECONOMIC
 DEVELOPMENT PROGRAMS AND
 CONSERVATION AND LOAD MANAGEMENT
 TECHNOLOGIES

 SUMMARY: This act requires the Department of Public
 Utility Control (DPUC) to establish new  ratemaking
 procedures that modify the relationship between electric.
 gas. water, and telephone company sales and their earn-
 ings in order to promote energy conservation and other
 state policies. DPUC must  consider the company's per-
 formance in  promoting state policies in authorizing  a
 rate of return on investments.
   The act expands an existing law that entitles electric
 and gas companies to bonuses for their investments in
 conservation and load  management. It allows electric.
 companies to continue earning a return on retired gener-
 ating facilities when  their retirement is due to  the com-
 pany's compliance with  state policies. It requires DPI C
 to disregard these retired facilities in calculating the com-
 pany's excess capacity.
   The act allows electric and gas  companies to charge
 their ratepayers for  marketing  and  promotional costs
 under certain circumstances. It requires the Office of Pol-
 icy and Management (OPM) and other state agencies to
 promote conservation measures in  state buildings, and it
 amends the state's energy policy.
 EFFECTIVE DATE: Upon passage

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                              ENERGY AND PUBLIC UTILITIES COMMITTEE
 FURTHER EXPLANATION

 Changes in Raiemaking Procedures

  Legislatn-e Findings. The act states that the legislature
 finds that electric, gas. water, and telephone companies
 will be  discouraged from  implementing programs  pro-
 moting  state energy, economic development, and other
 policies if their participation in these programs harms
.their earnings. It also finds  that,  in  order to  promote
 these programs, earnings should be consistent with statu-
 tory ratemaking  principles, even  though the companies
 are participating  in the programs.
  DPL'C Revision of Ratemaking Procedures. The act
 requires DPUC to investigate  the relationship between
 utility  company  sales and earnings  by December 31.
 1991. It must implement ratemaking procedures and
 practices that encourage the  implementation of conser-
 vation programs and  other  DPUC-approved programs
 that promote state energy, economic  development, and
 other  policies. These procedures must modify  or elimi-
 nate the direct relationship between sales and  earnings.
 The procedures can use a statutory provision that adjusts
 rates on the basis of sales or a similar method.  DPUC
 must review its regulations and policies to identify disin-
 centives to the development and implementation of pro-
 grams promoting the state's policies.
  DPUC, in consultation  with 0PM and the  Office of
 Consumer Counsel (OCC). must submit proposals to the
 legislature by February 1, 1992. The proposals  must rec-
 ommend additional legislation DPUC considers neces-
 sary to encourage conservation programs and other pro-
 grams  promoting  state energy policy and other  state
 policies.
  Performance Considerations in Ratemaking. Under
 prior law, DPUC authorized  a company to earn a rate of
 return  on its investments  that was no more than  suffi-
 cient to cover its costs, maintain its  financial  integrity,
 and attract  needed capital.  The  act, instead, requires
 DPUC  to authorize  a  rate of return  within a range of
 reasonable rates  based on  the following factors:
   1. the quality,  reliability,  and  cost of the company's
     service:
   2. the reduction or shifting of demand for electricity,
     gas. or v.ater resulting from the  company's conser-
     vation  and load managcmeni programs  that  have
     boon Lirrr.-v.,\! h%  DPUC:
   3. the company's  successful implementation  of pro-
     grams supporting economic development:
  4. its  success in decreasing or limiting the state's
     dependence on  oil or meeting other criteria estab-
     lished in state policy; and
   5. other criteria consistent  with state energy policy
     and other policies.
   DPUC can  establish other performance-based incen-
 tives, either related or unrelated to the company's autho-
 rized  rate of return,  to  implement the act and  existing
 ratemaking  principles.  If a  company seeks  to benefit
 from  these  provisions, OCC can retain  independent
experts to analyze, evaluate, and testify on the appropri-
ateness of the company's proposal. The company must
pay OCCs reasonable costs up to $50,000 per proceed-
ing.  DPUC must allow the company to recover this
expense from its ratepayers. It can adopt regulations to
implement these provisions.
  The act allows DPUC to approve electric, gas, water,
and telephone company rate changes, at the company's
request, in a proceeding other than a rate case in order to
encourage programs that promote  energy, economic
development, and other state policies.
  Bonus for Conservation and Load Management Pro-
grams. By law,  electric and gas companies must imple-
ment conservation  and  load  management programs.
This act requires that these programs be consistent with
"integrated resource planning  principles." Neither the
act nor existing law defines this term.  In  practice, it
means a planning process that analyzes demand and sup-
ply simultaneously and allows entities other than utility
companies to provide energy  supply and conservation
services.
  By law,  electric and gas companies are entitled to a 1%
to 5% bonus on their authorized rate of return on multi-
year capital  investments under these programs. The act
extends this provision  to their expenditures treated as
operating  expenses.
  Under the act. in order for an investment or an expen-
diture to  receive the bonus, it  must:  (1) be pan of a
DPUC-approved program.  (2) be prudently  incurred.
and (3) be successfully  implemented.  DPUC  can also
authorize  an electric company to earn a  return on its
expenditures  in acquiring conservation and load man-
agement services, as approved by DPUC. from an inde-
pendent provider of these services.

Retired Generating Facilities

  By  law, when an  electric company with  more  than
75,000 customers seeks to change its  rates. DPUC must
exclude from the company's rates the costs associated
with the company's  excess generating  capacity. DPUC
must consider state energy policy, among other things, in
determining whether a facility represents excess capacity.
The act requires DPUC to disregard the following, as it
considers  appropriate, in calculating the company's
excess capacity:
  I. reduction in the company's peak demand  resulting
    from  its conservation measures and other measures
    and  programs undertaken by the company since
    January  I,  1986 to promote state energy policy:
  2. the capacity of the company's share in hydroelectric
    and  other  renewable resource facilities placed in
    service after June 1. 1986;
  3. the capacity provided to the company by "qualify-
    ing facilities" (primarily cogenerators) and resource
    recovery facilities placed in service after January 1.
    1986;
  4. any increase in the company's capacity after June 1.
    1986  resulting from programs or measures under-

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                                 ENERGY AND PUBLIC UTILITIES COMMITTEE
     taken to implement state energy policy and other
     state policies:
  5. the reduction  in the company's need for reserve
     capacity  attributable to  DPUC-approved connec-
     tions between New England electric companies and
     electric systems outside the region; and
  6. other capacity adjustments DPUC considers appro-
     priate, including those it has already recognized.
  DPUC must permit the company  to continue to earn a
return on and depreciate its unrecovered  investment in
generating facilities  that have been  used to provide ser-
vice and that are temporarily or permanently retired due
to compliance with state policy. The company can earn a
return on  a retired facility only insofar as the retirement
reflects the six factors described above. DPUC must also
allow the company to recover, from ratepayers, the cost
of retiring the facility and the prudently incurred ongoing
costs  associated with maintaining temporarily retired
facilities. In making its determination concerning allow-
able returns on a retired facility. DPUC must consider
the  potential  for selling the  facility's capacity or thi-
power it generates.
  The act specifies that it does not  affect any settlement
agreement that DPUC has approved before its effective
date or that arises out of a case pending on that date.

Promotional and Markeunx Cosis

  The act repeals a  law which prohibits electric and gas
companies from passing to ratepayers the cost of pro-
grams designed  to  encourage residential customers to
convert their  oil heating systems  to electricity or gas.
This prohibition applied to company programs or  plans
that offer cash or billing credits or impose unreasonable
costs  to promote fuel switching.
  Under the act. DPUC can allow electric and gas com-
panies to promote specific end uses of electricity and gas
to implement state energy policy and other policies, con-
sistent with integrated resource planning  principles and.
with the law limiting the companies' recovery of their
advertising costs.
  The act also  permits gas and electric  companies to
recover from  ratepayers their reasonable  costs in pro-
moting and marketing efficient gas and electric equip-
ment  that DPUC determines (1) is consistent with state
energy  policy  and integrated resource planning princi-
ples. (2) provides net economic benefits to the company's
customers, and (3) does not have the primary purpose of
promoting one fuel  over another.  To benefit from this
provision, a  company  must apply to DPUC. To the
extent practicable. DPUC must determine whether the
equipment meets these  two criteria within 120 days of
the application. The company must  pay DPUC's and
OCC's costs  for analyses, testing, evaluation, and  testi-
mony at a public hearing or other proceeding and all
other reasonable and necessary costs in administering
this provision. DPUC specifies how and when these costs
will be paid.
State Facilities

   By law.  the  public works  commissioner can. at an
agency's request, expedite energy-saving capital projects.
The act requires each  agency  to  submit a list of its
projects to  the Energy and Public Utilities Committee by
February 1. 1992.
   By law, OPM must submit an annual report on energy
projects in  state buildings to the governor and the Energy
and Public Utilities Committee. The act  requires this
report  to  identify  any  state laws or procedures, thai
impede innovative energy conservation projects in state
buildings.
  The act  requires  the OPM secretary,  in conjunction
w-ith the Department of Public Works, to investigate the
feasibility  of connecting  state-owned  buildings to
existing and proposed district heating and cooling sys-
tems. He  must report  his findings to the Energy  and
Public Utilities Committee by  February' 1.  1992.  The
report must include an engineering study of the technical
feasibility of such connections, their costs, and their pro-
jected energy savings.
  OPM must require each agency to maximize its use of
utility company conservation and load management pro-
grams and provide sites for demonstration projects of
highly energy efficient equipment in its facilities, so long
as this will not impair their functioning.
  The Department  of Public Works must adopt regula-
tions establishing criteria for selecting equipment for use
in state buildings. The criteria must include a life-cycle
analysis. By law, a  life-cycle energy cost analysis calcu-
lates the total of acquiring, operating, and maintaining
capital goods over  their useful  life. Under the act. the
analysis must also  consider  the full cost of the energy
capacity and related infrastructure associated with the
type of energy the  equipment uses  and the risks associ-
ated with this energy source.

Other Energy Policy Changes

  In reviewing electric, gas, and water company resource
plans, DPUC must  consider the noneconomic costs and
benefits of all proposed  resources,  consistent with state
energy policy  and  other policies and the  principles of
integrated resource  planning.

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           STATE GOVERNMENT INITIATIVES  TO
      PROMOTE CLEAN TRANSPORTATION FUELS

          A REPORT OF THE AMERICAN GAS ASSOCIATION
             STATE AND LOCAL AFFAIRS SUBCOMMITTEE


Boldface indicates 1991 additions

   The American Gas Association is heartened by the gathering momentum behind state
government action to promote greater use of natural gas vehicles (NGVs) and other clean-
fuel vehicles. The passage of the Clean Air Act Amendments of 1990 provides additional
incentives for state and local governments to seriously consider the many benefits of an
aggressive NGV program.
   The natural gas industry is strongly committed to the development, commercialization
and public acceptance of NGVs.  NGVs can improve the environment by substantially
reducing vehicular emissions of reactive hydrocarbons and carbon monoxide. In addition,
since roughly two-thirds of all the oil consumed in the .United  States is used as a
transportation fuel, NGVs can bolster national security -  and keep more of America's
capital resources at home - by displacing imported oil in the only major market where oil
still has a monopoly.
   Since 1987, individual cities and states have been leading the way in this  important area.
What follows is a report  on significant actions to date.

      Arizona: In 1991, Chapter 176 was enacted which requires that the Director of the
Department of Administration, in consultation with the State Energy Office, to implement
a replacement program for fleets with vehicles that are the most fuel efficient in their class
and to increase the use of alternative fuels in state-owned vehicles.
   In  1987, the Arizona Legislature enacted a law that mandates shifts  to clean-fuel
vehicles by certain public and private fleets in metropolitan Phoenix and Tucson. In 1988,
the mandate was extended  to buses, and natural gas was given a partial  and  temporary
exemption from the state's motor fuels tax.

      Arkansas;  In 1991,  Act 659 creates a 9-raember alternative fuels  commission to
coordinate and direct the alternative fuels market.
                             American Gas Association
                   l.-.l.-, Wilson Boulevard. Vrlin-.-ton. \ A 2221W • (703) 841-8597

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       California:  In late 1991, the California legislature passed four bills on alternative
fuels.  SB 135  requires all  passenger vehicles-for-hire in  nonattainment areas to use
alternative fuels. SB 547 provides that the ownership or operation of a facility which sells
compressed natural  gas at retail to the public for use only as a motor fuel does not  make
the corporation or person a public utility.  AB 1607 allows utilities to build and recover the
costs from natural gas vehicle compression stations, and natural gas vehicle conversion and
maintenance facilities. AB 1338 authorizes the State Energy Resources Conservation and
Development Commission to develop and submit recommendations to the legislature for the
conversion of the state's university shuttle-bus system to alternative fuel.
       In September 1990, California enacted a number of measures that will help promote
the use of NGVs.  One law provides for tax credits for the cost of devices installed on new
or used vehicles to convert them to Low Emission Vehicles.  Credits are limited to $1000
per automobile and  $3500  on other motor vehicles. Another law authorizes local units of
government to assess emission  fees to fund vehicle demonstration programs.  A third law
requires the Public Utilities Commission to evaluate and implement policies to promote the
development of equipment and infrastructure needed to facilitate  the use of NGVs and
electric vehicles.  The PUC must hold  hearings, consider specific policies and provide the
legislature with a progress  report.  The PUC also must sponsor workshops to address the
regulation of the sale of natural gas for use in vehicles.
   In September 1990, the California Air Resources Board adopted regulations for tailpipe
emissions standards and test procedures for light-  and medium-duty vehicles, and the
distribution and availability of clean fuels.  The proposal is designed to achieve the greatest
possible emission reductions in the most efficient manner by spurring the development of
advanced vehicle technology and allowing the use of cleaner-burning fuels. The regulations
establish emission standards in four progressively  more  stringent categories:  transitional
low-emission vehicles, low-emission vehicles, ultra-low-emission vehicles and zero-emission
vehicles.   The phased-in production mandate for clean-fuel vehicles applies  to vehicles
produced for sale and use in the state of California. The hydrocarbon emission standards,
expressed as non-methane  organic gases (NMOG), include measurements of non-methane
hydrocarbons, aldehydes, ketones, and alcohols. The NMOG will be adjusted for reactivity
and starting with the 1994 model light-duty vehicle (including passenger cars) category, will
have to meet a fleet average NMOG standard.  A system  for earning marketable credits for
use in complying with fleet average standards will be established.
   The Clean Air Act Amendments of 1990 include a California Pilot Program which
requires, at a minimum,  150,000 clean-fuel vehicles to be produced, sold and distributed
annually in .1996-98. Beginning in 1999, 300,000 such vehicles must by produced, sold and
distributed annually.
   In September  1989, the California  legislature enacted two  measures that promote the
vehicular  use of natural gas and other  clean transportation fuels.  One law provides that,
until 1995, the incremental cost of any  clean-fuel vehicle will be exempt from the state's 6
percent sales tax.   Another law requires  that,  subject to vehicle availability,  at least 25
percent of all newly acquired state government vehicles  must have clean-fuel capability.

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       Colorado:  A  1990 Colorado law requires  that 10% of the new motor vehicles
purchased or leased by state agencies during fiscal year 1991-92 operate on clean fuels.
Each year thereafter through FY94-95, an additional 10% must use alternative fuels.  New
vehicles may be bi-fuel, and existing vehicles may  be  converted to reach the percentage
requirements.  Emergency vehicles and heavy-duty vehicles are exempt.  The law also
removes the sale of natural gas as a vehicle fuel from the jurisdiction of the public utilities
commission.
    In  1989, the Colorado Legislature enacted a law that provides a $200  rebate for any
person who acquires a clean-fuel vehicle or retrofits an existing vehicle. State and municipal
agencies are also  eligible to receive the rebates, which are capped at five vehicles per
person.

       Connecticut: In 1991, the General Assembly passed two bills related to alternative
fuels. Act 91-142 directs the Commissioner of Environmental Protection to conduct a study
on the adoption of California's emission standards.
    Act 91*179 establishes a 10% tax credit for any investments or expenditures relating to
alternative fuel vehicles until  1993.   Alternative  fuel vehicle  tunnel  restrictions  were
removed. Also, effective October 1,1991, this Act exempts from the sales tax and use tax:
new vehicles that  use clean alternative fuel;  equipment to convert vehicles to  clean
alternative fuel or to dual use of a clean alternative fuel and another fuel; and, equipment
incorporated into or used in compressed natural gas filling stations.
    A bill aimed at global warming was oassed in May 1990. Of interest in the bill is a
section that prompts the Standardization Committee of the Public Works Department to
"consider vehicles using alternative fuels when considering new purchases."

       District of Columbia: In December 1990, the District of Columbia enacted sweeping
alternative fuels legislation. The law requires government and private owners and operators
of fleets of 10 or more to convert 5 percent of their vehicles to operate on clean alternative
fuels each year beginning in 1993 through 2000.  Reformulated gasoline is  excluded  from
the clean alternative fuels definition.
    The law also bans, effective 1998, commercial vehicles not powered by an alternative
fuel from operating in the Central Employment Area (downtown area) of the District  from
sunrise to sunset between May 1 and September 15, the period when smog is particularly
bad.
    By February 15,  1992, and on October  1 of each subsequent year,  each owner and
operator of a commercial fleet is required to submit plans to the mayor that contain specific
short-  and long-range goals and  timetables  for the implementation of a clean alternative
fuels program.  Fines of up  to $5000 per day for noncompliance may be levied.

       Florida;  In October 1991, the governor of Florida passed Executive Order 91-253
mandating alternative fuels in state agency vehicles. By January 1, all state agencies must
submit FY 92-93 budget amendments to begin use of alternatively fueled fleet vehicles in
air quality nonattainment areas.  By  the year  2000, all  possible fleet vehicles will  be
required to use the   most efficient,  least-polluting  alternative  fuels.   Highly visible

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demonstration programs using new technologies are also mandated. The governor's office
will also make changes to implement the use of alternatively fueled fleet vehicles in FY 92-
93 with the goal of operating all  possible fleet vehicles on  alternative fuels.  Florida's
Energy  Office, in conjunction with the Department of General Services and agency  fleet
managers, will develop a comprehensive state plan for alternatively fueled vehicle purchases
and fueling and service infrastructure.

      Hawaii:  In 1991, the legislature passed two bills related to alternative fuels. SR 154
and  SCR 175 requests that the Department of Business, Economic Development  and
Tourism, with the Department of Accounting and General Services, determine 1) alternative
motor vehicle fuels, 2) conversion costs, 3) additional purchasing costs for alternatively
fueled vehicles, 4) comparative costs of fossil and alternative fuels, and 5) short- and long-
term benefits of using alternative fuels.

      Iowa:  In 1991, SF 508 establishes a mandate, beginning in 1992, that at least 5%
of the new state vehicles purchased shall be equipped to utilize alternative fuels, increasing
to 10% in 1994.  Also, alternatively fueled vehicles may be financed under the Iowa Energy
Bank Program,  which provides energy financing for the state,  state agencies, political
subdivisions, school districts, area education agencies and community colleges.

      Louisiana:  SB 537 was passed  in 1991  providing a 20% income tax credit for clean
burning alternatively fueled vehicles and property related to the dispensing of such fuel.
      In 1990, Louisiana enacted legislation that requires 30% of new state agency  fleet
vehicles to have clean-fuel capability as of September 1, 1994.  The mandate increases to
50% in  1996, and could increase to 80% in 1998, pending a review of the program by the
Louisiana Department of Environmental Quality.
   The legislature has directed the Public Service Commission to deregulated the direct
sales of natural  gas by producers,  pipelines, distribution companies of other persons for
vehicle  fuel purposes.

      Maryland:  The Maryland NGV Working Group, comprised of natural gas utility
representatives  from around the  state, will  have  recommendations to  submit to  the
legislature on compressed natural gas- and LNG-powered vehicles in 1992.

      Massachusetts:  In December 1990,  Massachusetts enacted a law that will allow the
Commonwealth  to adopt the non-methane hydrocarbon emissions standards b ;ed on
California's 1994 low-emission vehicle standards. The Massachusetts  standards ar  to be
phased in, beginning with model year 1993 vehicles, and prohibit any corporation or •.  rson
from selling vehicles in the state unless they comply with the standards.  In model yea:  000,
the hydrocarbon standard that can be met by gasoline-powered vehicles will be comp.ctely
phased  out.
   The statute's language would allow Massachusetts  to delay implementation of these
standards by up to two years if the state determines that other New England states or  New
Jersey are unlikely to adopt the  California  standards. New York  adopted California

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                                         5

standards in 1990. (see New York)
    Exemptions to the program are available for certain vehicles, such as used vehicles that
are sold as used vehicles in Massachusetts.  Exemptions also are available for vehicles
originally registered outside of Massachusetts but  brought into  the  state because  of
ownership transfers pursuant to inheritance, divorce or legal separation.

      Minnesota: Minnesota deregulated the sales of natural gas for resale to end-users
for vehicle fuel purposes, making such sales a non-utility function. (1984)

      Missouri;  Passed in 1991, HB 45 sets a timetable for the conversion of government
vehicle fleets to alternative fuels. Any fleet of 15 or more vehicles must convert 10% by July
1,1996, 30% by July 1,1998, and 50% by July 1,2000, to be capable of burning alternative
fuel.  By July 1, 2002, 30% of government vehicles must operate solely on alternative fuels.

      Nevada:  AB 812 relates to clean air; requires the state environmental commission
to conduct public hearings and submit a report concerning the use of alternative fuels in
certain motor vehicles; requires the state environmental commission to adopt the laws of
California concerning certain emmission tests for diesel  vehicles.

      New Mexico;  In 1991, the legislature passed HM 23 which establishes  the Clean
Alternative Fuel Task Force.

      New York:  a 1991 New York City ordinance requires the city to purchase 385
alternative fuel motor vehicles by June 30,  1992, and establishes a rate of purchase for
alternative fuel buses.
    In Fall 1990, the  New York Department of Environmental Conservation  adopted
California's 1993 motor vehicle emission standards and durability requirements.  Beginning
in 1993, 40% of passenger  cars and  light-duty trucks and  certain medium-duty vehicles
manufactured for sale in New  York must meet  exhaust standards of 0.25 gin/mi for
hydrocarbons, 0.4 gm/mi for nitrogen oxides and 3.4 gm/mi for  carbon monoxide.  The
percentage rises to 80% in 1994 and 100% hi 1995. All emission control equipment  must
be certified  to  last 100,000  miles.   As noted earlier, California has since adopted more
stringent standards.   New York is expected  to  follow suit, maintaining an equivalent
program.
    In August 1990, New York embarked on  a six-year, $40-million state demonstration
program to operate  268 cars, buses and trucks on alternative fuels.  The  vehicles will be
purchased  or retrofitted,  operated throughout  the state, and  tested  extensively for
performance, durability and emissions. In addition, several fueling facilities will be built,
and funding will be provided for driver and mechanic training and an information network.
The vehicles operating on natural gas in the  program will include  buses  and  light- and
heavy-duty trucks.
    Also in  August  1990, The Port Authority and the Triborough. Bridge and Tunnel
Authority (TBTA) jointly announced that they have opened access to  their tunnels and
bridges "to certain [dedicated] alternative-fueled motor vehicles that reduce air pollution."

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The TBTA fully lifted its ban on bi-fuel vehicles as well.
    In 1989, three state agencies issued a jointly developed New York State Energy Plan
that calls for a 50% increase in natural gas use by 2008. While the plan stopped short of
advocating an outright mandate for the use of clean transportation fuels, it did call for
accelerated state government demonstration programs and asserted that New York State
"should encourage the use of compressed natural gas as a transportation fuel".

       North Carolina:  Chapter 738 requires the Energy Division of the Department of
Economic and Community Development and the Department of Administration to study the
use of clean transportation fuels in state-owned vehicles and to develop a demonstration
project using natural gas as the fuel for state-owned vehicles.

       Oklahoma: The "1991 Alternative Fuels Conversion Act" (HB 1193) provides for a
50% tax credit for conversion of a vehicle to liquid propane gas, liquid natural gas and
compressed natural gas and for equipment used to fuel vehicles for a period of two years.
The 50% tax credit is applicable from December 31,1990 to January 1,1993. At the end
of the two-year period, the tax credit reverts back to the 20% implemented in 1990  by the
legislature.
       The Office of Public Affairs currently administers the $1.5  million Oklahoma
Alternative Fuels Conversion Fund.  The  fund will reimburse costs to any  state, county,
municipal or school district, up  to $3500 per conversion, that voluntary converts a vehicle
to compressed natural gas, LNG, propane, ethanol or electricity.  The fund will also pay the
costs, up to $100,000, to install fueling stations. In return,  the agencies will repay the fund
from the fuel savings achieved until the  fund is repaid. Repayment will be suspended if the
clean fuel price is not below the price of the fuel displaced by the alternative fuel.
       Also, the  sale of compressed natural gas, liquid natural gas, and liquid propane gas
as a vehicle fuel was deregulated.

       Oregon:  Enacted in 1991, SB 765 requires a certain percentage of state vehicles to
be capable of using alternative  fuel to  the maximum extent economically possible.  After
July 1,1994, the state shall acquire only alternative fuel vehicles except in areas unable to
economically dispense alternative fuel.
       SB 766 requires motor vehicles, subject to the control of certain mass transit and
transportation  districts, to use alternative fuel to the  maximum extent  economically
possible.
       HB 2130 expands the energy conservation  tax  credit programs to  include costs
associated with acquiring and operating alternatively fueled fleet vehicles. It also permits
investor-owned utilities to offer  commercial and industrial customers cash to assist in the
purchase of alternatively fueled fleet vehicles and fueling  facilities.
       HB 3344 establishes two studies. First, the Department of Transportation will study
the feasibility of replacing department passenger-carrying gasoline vehicles with NGVs. The
second directs the Department of Energy, in consultation with the Economic Development
Department, to assess renewable fuels and cost of achieving state fuel independence.
    The Oregon Department of  General Services has established a demonstration program

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for clean-fuel vehicles.  The Salem state motor pool is operating a 2-year demonstration
program using 14 bi-fuel vehicles. Thus far, the program administrators are very pleased
with all aspects of the NGVs. Another 20-vehicle procurement is being considered.

       Pennsylvania:  In  December  1989, both  Houses of the Pennsylvania legislature
adopted a resolution that urges Congress "to enact a meaningful mandate for phased shifts
to alternative transportation fuels by a substantial number of our nation's vehicles, and to
assure that any such mandate permits undistorted competition, under comparable regulatory
conditions, between all transportation fuels that  are substantially cleaner than  oil-based
products."  The Pennsylvania resolution also urges Congress "to enact tax incentives for the
private sector, and financial assistance incentives for the states and  municipalities, in order
to reduce  .the obstacles  posed by initial capital expenditures for shifts to alternative
transportation fuels."

       South Dakota: In 1990, the South Dakota Legislature passed a resolution, patterned
closely  after the Pennsylvania resolution, that urges  Congress "to enact a  meaningful
mandate for phased  shifts to clean transportation fuels by a substantial number of our
nation's vehicles."  Like the Pennsylvania resolution, the South Dakota resolution also calls
for federal tax incentives  for the private sector, federal financial assistance incentives for
states and municipalities, and federal policies that permit "undistorted competition" between
clean transportation fuels.

       Texas: In 1991, the Texas legislature passed sales tax exemption status for propane
and natural gas as a motor vehicle fuel.
    In May 1989, the Texas legislature enacted two laws that mandate a phased shift to
clean transportation fuels by certain vehicles in nonattainment areas. The mandate covers
all metropolitan buses, state agencies with fleets of over 15 vehicles and school districts with
fleets of over 50 school buses. The mandate directs affected fleet operators to attain clean-
fuel capability for all vehicles acquired after September  1,1991. Retrofitting of vehicles will
be necessary in the probable event that sufficient clean-fuel vehicles are not yet available
directly from Original Equipment Manufacturers.

    The following targets  for compliance must be met:

         30% of each affected fleet by September 1, 1994;
         50% of each affected fleet by September 1, 1996; and
         If certain findings  are made by the Texas Air Control
         Board, 90% of each affected fleet by September 1, 1998.

    The Texas Air Control Board is also empowered to  set mandates for most local
government fleets of  over 15 vehicles -and for private fleets of over 25 vehicles.
    For compliance, vehicles must  have the capability to use compressed natural gas "or
other alternative fuels  that result in comparably lower emissions of oxides  of nitrogen,
volatile organic compounds, carbon monoxide, or particulates or any combination of them".

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                                         8

Exemptions can be  obtained if refueling facilities are  unavailable and/or if clean-fuel
suppliers do not offer adequate financing.
    Enactment of these laws followed a one-year state government demonstration program,
involving 12 state government vehicles, which showed that retrofitting vehicles to natural gas
led to substantial reductions in operating costs and dramatic improvements in emission
levels.
    Texas also passed HB 1878, which deregulates the sale of natural gas for resale to end
users for vehicle purposes, making such sales a non-utility function, effective September,
1989.

       Utah:  Several programs were established with HB  122 and HB 142.  A Clean Fuel
Private Sector Incentive Program will award monies from  an annual budget of $10,000 to
private sector conversions or purchases of clean-fuel vehicles. The second law established
the revolving Clean  Fuel  Conversion Fund.  An appropriation of $10,000 will be given
annually.   Up to $3,000  per government vehicle may  be loaned  out to government
departments, school  divisions, etc. with repayment required within seven years.

       Virginia:   In  1991, Virginia passed extensive alternative fuels legislation. SJR 206
and HJR  481 established an  18-month pilot  project  in  Northern Virginia,  Greater
Metropolitan Richmond, and Hampton Roads to determine the feasibility of domestic clean
fuels.
    HB 1401 prohibits the School Board  from preventing the use of alternative fuels in
school buses.
    HJR 321 calls for each of the seven school divisions to develop plans for conversion of
bus fleets to alternative fuels emphasizing compressed natural gas.
    HB 1454 makes  loans available from the Literary Fund to purchase alternative fuel
buses, to convert buses to alternative fuels, and to build alternative fuel refueling facilities.
    HJR 334 furthers the joint subcommittee on Clean Transportation Fuels through the
1992 legislative session.
    SB 627 allows SCC to deregulate the sale of natural gas as a vehicle fuel on a case-by-
case basis.
    HJR 336 provides for the removal of tunnel restrictions on alternatively fueled vehicles.

    In 1990, the Virginia General Assembly created a special joint subcommittee to study
the possible use of natural gas vehicles and other clean-fuel vehicles in the state.  The group
is studying the emissions, economics, safety and  other benefits of clean-fuel  vehicles that
could be purchased or leased by state agencies, school districts and local transit authorities.
The subcommittee held seven hearings on clean-fuel vehicles and related issues last  year,
at various locations around the state.
    The Virginia NGV Working Group, comprised of natural gas utility representatives from
around the state, prepared a white paper to suggest options  for an NGV program in
Virginia.  Many of the group's recommendations were included  in the enacted package of
legislation.

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      Washington:  In 1991, municipal and state legislation made significant strides in
alternative fuels.  King County Ordinance 9891 provides that at least 50% of the vehicles
purchased in 1992 shall use alternatives fuel and at least 75% in 1993; this may include the
conversion of existing vehicles.
    Ordinance 9892  waives  the licensing fee from 1991-1996  for taxicabs and for-hire
vehicles using alternative fuels.
    Ordinance 9893 makes an appropriation of $132,500 from the Public Works Fund and
Motor Pool Fund to  implement the Alternative Fuels Pilot Program.
    The state Clean Air Bill (HB 1028) requires  30% of vehicles purchased on state
contracts  to  use  clean fuels after July 1, 1992, increasing 5% each  subsequent year.
Preference will be given to dedicated clean fuel vehicles, however, conversions may be used
in a one to one ratio. Also, the law finds compressed natural gas fueling  infrastructure
development  imperative and to be in the public interest.
    In 1989, the Washington legislature enacted a law requiring the state's Department of
Transportation  to "consider" acquiring clean-fuel vehicles where they  are feasible and
economically justified.

      West Virginia: SB 2 requires the Public Service Commission  to develop technology
demonstration programs for natural gas, methanol and electricity. Also, the sale of natural
gas as a vehicle fuel  by a non-utility was deregulated.
      The governor, by means of executive order, initiated a test group of state vehicles to
be converted to use compressed natural gas. The executive order seeks to establish a series
of natural gas refueling stations to be operational by September 30, 1991 for use  by the
converted vehicles.

      Wisconsin:  Wisconsin received federal funding approval for a program to assist
municipalities in converting their fleets to utilize alternative fuels and displace gasoline use
by 85%. Qualified local governments may receive up to $30,000, or maximum of $2,000 per
vehicle, under the two-year program.   The Energy Department has allocated $150,000 for
the program, funded by the  Energy Overcharge Fund.
    Governor Tommy G. Thompson  has  appointed  a task  force composed of cabinet
members to monitor  a state fleet alternative fuels pilot program and to develop state policy
on the use of alternative fuels.

      The Northeastern States:  Eight  northeastern states have agreed in principle to adopt
stronger auto emissions standards, equivalent to the California LEV program.  The new
standards would apply to model-year  1993 vehicles that enter commerce in Connecticut,
Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont.
The plan was drafted by the Northeast States for Coordinated Air Use Management, but
each state will develop its own program. New York and Massachusetts have already done
so.  Maine and Rhode Island may be next in line.

       State and Local Groups:  A number of organizations  representing state and local

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                                     10

governments or agencies have adopted policy statements supporting the increased use of
natural gas, especially in vehicles, as a viable way to pursue America's environmental and
energy security  goals. Groups endorsing this policy  include  the  National Governors
Association, the National Association of State Energy  Officials, the National League of
Cities, the Energy Council (formally the South/West Energy Council) and the National
Conference of State Legislatures.   The National Association of Regulatory  Utility
Commissioners (NARUC) has adopted a resolution to "further encourage the development
and widespread use of natural gas vehicles."
                       AMERICAN GAS ASSOCIATION 	
               STATE AND LOCAL AFFAIRS SUBCOMMITTEE

              KENNETH GAUDI, Manager, State Government Issues
                    at Peoples Natural Gas Co., CHAIRMAN

               ANDY McGINN, Manager, State and Local Relations
              at the American Gas Association, STAFF EXECUTIVE
                                 703/841-8597

                               December 2, 1991

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Session !!. Marketable
       Permits

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            Pat Leyden
 South Coast Marketable Permits Program:
          VOC and NOX Sources
South Coast Air Quality Management District



         Diamond Bar, California

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                   MARKETABLE PERMITS PROGRAM
                   FOR THE SOUTH COAST AIR BASIN
                                   by
                               Pat Leyden
                 South Coast Air Quality Management District
                          Diamond Bar, California
I.    SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD)

     A.    Who is the SCAQMD?
     B.    SCAQMD's Jurisdiction
     C.    Current Rules and Regulations

II.   MARKETABLE PERMITS PROGRAM (MPP)
           v
     A.    Concept
     B.    Sources Participating in the MPP
     C.    Baseline Emissions

III.   PERMITTING - "THE IMPLEMENTING MECHANISM"

     A.    Single  Source Permits
     B.    Multiple Source Permits
     C.    Emission Reduction Targets
     D.    Annual Permit  Renewals

IV.   ENFORCEMENT - "THE CRITICAL ELEMENT'

     A.    Compliance Tools for ROG Sources
     B.    Compliance Tools for NOX Sources
     C.    Facility Audits
     D.    Emissions Monitoring and Reporting Periods

V.   EMISSIONS TRADING - "THE CENTERPIECE"

     A.    ROG Commodity
     B.    NOX Commodity
     C.    Trading System
     D.    Trading Market
     E.    Trading Restrictions

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VI.   AIR QUALITY ASSESSMENT AND SOCIO-ECONOMIC IMPACTS
     "IMPLEMENTATION IMPLICATIONS FOR THE BASIN"

     A.   Air Quality Assessment
     B.   Potential Socio-Economic Impacts

VII.  SCHEDULE FOR THE MPP

     A.   Feasibility Study
     B.   Recommendation to the SCAQMD's Governing Board
     C.   Rule Development

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   MARKETABLE PERMITS PROGRAM FOR THE SOUTH COAST AIR BASIN

                                       by

                                   Pat Leyden
                    South Coast Air Quality Management District
                             Diamond Bar, California


MARKETABLE PERMITS PROGRAM

The South Coast Air Quality Management District is studying the use of an emissions
trading program as a means of achieving further emission reductions from stationary
sources in the Basin in a more cost-effective manner. Stationary source emissions are
currently regulated by source specific rules, which specify increasingly stringent processes
and/or control technologies to achieve emission reductions. This approach  has been
widely successful.  Emissions from almost every source category have been significantly
reduced.

Although air quality goals can be met through traditional rules and regulations,
employing market-based approaches may reduce  compliance costs, allow greater
compliance flexibility to affected sources, and can stimulate technological innovation.

PROPOSED PROGRAM DESIGN

The Marketable Permits Program (MPP) is based on the concept of bubbling stationary
sources at the facility level,  limiting total mass emissions from the facility, and requiring
the sources to meet prescribed annual facility emissions targets.  The actual method of
compliance would be up to  the individual firm, including purchasing traded  emissions,
installing control equipment, using lower emitting material, or other techniques.

Under the MPP, facilities with one or more permitted emission sources would be
allocated baseline emissions for ROG and NOX based on recent historical emission
levels. Each year, sources would be required to meet annual emission targets that would
decline from the initial baseline emission allocation approximately 5 percent for ROG,
and 7 to 8 percent for NOX.

STATUS

The District is currently conducting a year-long feasibility study for the MPP which will
conclude in early 1992. A series  of working papers are  being developed to  address key
policy and technical issues.  To date, five working papers for  the feasibility study have
been  completed. A broad-based  Advisory Committee has been working to develop
recommendations for the MPP.

In March 1992, District staff will  report  to the Governing  Board seeking a
recommendation regarding rule development.  If the Board approves, a series of rules
will be developed to implement the MPP.

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Facility
Permit

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  Mass
Emission
  Limits

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   Marijke Bekken
Locomotive Emissions Trading
California Air Resources Board



   Sacramento, California

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                        Locomotive Emissions Trading

                               Marijke Bekken
                       California Air Resources Board
In 1988, the California Clean Air Act was passed, requiring that the
California Air Resources Board (ARB or Board) consider the adoption of
emission regulations for currently unregulated mobile sources, including
locomotives.  Pursuant to that mandate, a market-based plan to reduce
locomotive emissions is being developed.  It is composed of an emissions
cap, which declines over time, coupled with marketable emission permits.
The permitted levels would be based on a determination of the percent
control believed reasonable and achievable, or on the overall emission
reductions necessary to achieve California air quality standards.  Emission
reductions beyond those required for a given company would result in
emission credits, which could be sold.

Concerns about the locomotive strategy focus on growth and enforcement
issues, especially the incorporation of growth in the railroad industry,
growth  in passenger corridors, market shifts between trucking and rail, and
market shifts within the rail industry.  Verification and enforcement of the
emissions cap are major issues, especially the cost and administration
technicalities.  These issues will be fully resolved as the strategy
undergoes further development.

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                       Locomotive Emissions Trading

                              Marijke Bekken
                      California Air Resources Board
1.  Legislative mandate to reduce emissions

2.  Brief background of the railroad industry
     a. Locomotive fleet
     b. Locomotive service types
     c. Locomotive emissions

3.  Regulatory options
     a. Locomotive emission standards
     b. Engine modifications/operational limits
     c. Market-based control strategy

4. The market-based control strategy under development
     a. Baseline emissions
     b. Company averages
     c. Reduction goals
     d. Emissions trading
     e. Enforcement and verification
     f. Advantages and disadvantages of a market-based control
        strategy for the railroad industry

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  A REGULATORY PLAN
 FOR THE CONTROL OF
LOCOMOTIVE EMISSIONS
Innovative Regulatory Strategies Workshop
      January 15-17, 1992

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        Overview
Background

Regulatory Options

Market-Based Control Strategy
 • Emissions accounting
 • Emissions reporting
 • Emissions trading

Recommendation
       Legislation
California Clean Air Act, 1988
 - consider locomotive regulations

Federal Clean Air Act, 1990
 - preempts "new" locomotives

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   Locomotive Fleet
20,000 locomotives in the U.S. fleet
500-600 new locomotives sold annually
90% are owned by major railroads
 Types of Locomotive
        Service
         • Local
         • Yard/Switch
         • Line Haul
         • Passenger

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        Locomotive Engines
      Medium speed diesel engines
      Rebuilt every 4 years
      Improvements can be retrofitted
      Engine drives electric generators
      Wheels driven by electric motors
      Little transient operation
           Locomotive NOx
               Emissions
                  by basin
        San Diego
         Bay Area
       South Coast
      Central Coast
       San Joaquin
    Sacramento Valley
1
    m
              0   2   4    6    8   10  12
                % total mobile source NOx emissions
Average, 6 basins, 4.7%

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     California NOx Inventory
              Stationary
               804
                          Other mobile
                            353
                              Locomotive
                                99
               On-road
                1678
1887 emissions data
        Regulatory Options
        Market Based Control Strategy


        New Engine Emission Standards
        (preempted, CAA)
        In-Use Engine Modifications and
        Operational Limits

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Market Based Control
 An emissions control strategy
 where total emissions from a
 number of sources are limited,
 but emissions from individual
 sources can vary
Market Based Control
          (MBC)
Emissions cap, declining over time
Marketable emission permits

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 Proposed MBC Strategy
  Baseline emissions
  Company averages
  Emission reduction goals
  Emission credit trading
    Baseline Emissions
• 1987 emissions inventory
• Company allocations based on ton-miles
  Adjustment of the baseline for growth

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A Company Bubble
  NOx Reductions

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     Emissions Trading
• Reductions must be verifiable ("real")
• Emissions accounting
• Emissions reporting
• Specific trading rules
  Emissions Accounting
  Locomotive logs (black box)
  Emission estimation formulas
  Verification based on fuel use

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  Emissions Reporting
Seasonal reporting of emissions
Annual reporting of emissions
Reports accompanying proposed trades
      Trading Rules
Emission reductions must be met
Same air basin only
Only reductions after base year count
ARB enforces reductions and trades

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      Enforcement
Emission factors to estimate reductions
Inspections
Noncompliance penalties
 Market Based Control
        Advantages
Incentives -> maximum reductions
Increased flexibility -> lower cost
New technologies developed

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    Market Based Control
             Concerns
    Accommodating industry growth

    Accommodating market shifts
    Verification of emission reductions
    Higher administrative costs
     Emission Reductions
           from 1987 levels
  tons per day
100
                               Baseline

                               Goal
   NOx   CO
PM
SOx

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   Recommendation
Locomotives contribute significantly to
California's emissions inventory.

Control of locomotive emissions is
necessary and achievable.

MBC strategies provide flexibility and
incentives to achieve emission goals.

Staff plans to develop regulations and
return in Fall, 1992.

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                Nicholas Kirsch




(Former Chairman of Telluride Environmental Commission)
    Wood Stove/Fireplace Marketable Permit Program
              Telluride Transit Company



                 Telluride, Colorado

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               SUMMARY OF THE WOOD STOVE/FIREPLACE
                     MARKETABLE PERMITS PROGRAM

                                      by

                                Nicholas Kirsch
                           Telluride Transit Company
                              Telluride, Colorado
I.     HISTORICAL BACKGROUND

      A.    Description of Air Quality Problem

            1.     Inversions

                  a.     Meteorology/Geography

                  b.     Growth impacts

                  c.     Solid fuel and vehicular contributors

      B.    Early Attempts to Quantify and Control

            1.     TSP Monitoring 1975

                  a.     One solid fuel burning device per structure in new
                        construction, 1977

      C.    Recent/More Comprehensive Approaches

            1.     1985 Moratorium on  New Solid Fuel Burning Devices -- Surveys

            2.     Implementation of Ordinance and its Components

                  a.     Solid fuel device caps, permits, rebates, retrofit requirements,
                        low interest loans, public education, public reaction, etc.

      D.    Two-for-One Build Down Permit Program

            1.     Deed Restrictions and Marketable Permits

            2.     Administration of Program

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                SUMMARY OF THE WOOD STOVE/FIREPLACE
                      MARKETABLE PERMITS PROGRAM

                                       by

                                 Nicholas Kirsch
                            Telluride Transit Company
                               Telluride, Colorado
Telluride, Colorado is a small alpine community resort (pop. 1000) situated in a box
canyon at an altitude of 9000 feet. The local meteorology and geography combine to
produce low, tight inversions during the winter months, trapping paniculate matter from
solid fuel and vehicular sources.

The town council, advised by the  EPA that it was in frequent violation of then proposed
federal PM10 standards, charged the Telluride Environmental Commission with the task
of designing a strategy to effectively .address the problem.  Since 1987, when the strategy
was fully implemented, daily monitoring has not indicated  a violation of either the
24-hour or annual PMi0 standard.  Nicholas Kirsch has been closely involved with the
program since its inception, and will describe elements of Telluride's approach in
bringing the area into attainment of federal standards.

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 Session III: Other
Innovative Strategies

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          Ray Bishop
Free Bus Ride/Voluntary No Drive Day
 Tulsa City/County Health Department



         Tulsa, Oklahoma

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                    TULSA'S OZONE ALERT PROGRAM

ABSTRACT

     In November of 1990 Tulsa, County, Oklahoma was declared in
attainment for Ozone and removed from the Environmental Protection
Agency (EPA) "Dirty Air List".  On June 24, 1991 two of the three
Ozone monitoring sites recorded Ozone values above the EPA
standard of .12 parts per million.

     Excursions this early in the year meant a high probability of
violating the Ozone standard and being put back on the dirty air
list.  The Indian Nations Council of Government, City and County
Government Officials, the Chamber of Commerce, local business
leaders and the Health Department formulated and implemented the
following actions:

     The Health Department developed an Ozone predictive model
using historical Ozone data and National Weather Service
meteorological forecasts.  Using the model, Ozone- "alert" days
were determined and declared at 4:00 p.m. the previous day.  This
allowed time for the media to broadcast the information and seek
public cooperation and action.

     The alert triggered free bus rides for everyone, requests
from all mass media to either:  carpool, ride the bus, bicycle, to
drive the newest and "cleanest" vehicle available, or postpone any
unnecessary driving.  In addition drivers were requested to avoid
fueling vehicles during alert days.

     All gasoline marketers in the County agreed to voluntarily
lower the vapor pressure of product sold from 9.5 Reid Vapor
Pressure (RVP) to 8.5 RVP.

     The actions taken were successful.  Four "alerts" were called
with Ozone values reaching .116, .109, .10 and .09 PPM but the
Ozone standard was not exceeded again.

-------
                    TULSA'S OZONE ALERT PROGRAM
                              OUTLINE
I.   Historical Perspective:

     A.   Violations
     B.   Sources
     C.   Best available control technology implemented
     D.   Improved air quality
     E.   Attainment

II.  Summer of 1991

     A.   June 24th excursions
     B.   Response to concern:
          1.  committee
          2.  industry meetings
          3.  model
          A.  community actions
              a.  bus
              b.  people
              c.  oil companies
              d.  media

     C.   Results:
          1.  avoided exceedances
          2.  free rides
          3.  model
          4.  public acceptance

III.Model Success

     A.   Four "alerts" called
     B.   Public awareness procedures
     C.   Close calls
     D.   Public cooperation

IV.  Plans for 1992

     A.   Lower "alert" value
     B.   Free emissions check
     C.   Alternate fuels
     D.   Continued Tulsa City-County Health Department, INCOG,
          City, County cooperation

-------
                 Lynn Sonntag
Media Educational Programs to Encourage Emission Reduction
               The Walt Disney Company



                Los Angeles, California

-------
               MEDIA AND EDUCATIONAL PROGRAMS
              TO ENCOURAGE EMISSION  REDUCTION

                          Presentation Outline

                                  by

                             Lynn Sonntag
                             Senior Counsel
                        The Walt Disney Company


I. INTRODUCTION

Public Education is a prerequisite to achieving clean air through behavioral change
strategies. These strategies include market induced emissions reductions for
stationary and area sources as well as newly proposed transportation control
measures.
II. PUBLIC EDUCATION IS EFFECTIVE IN CHANGING BEHAVIOR

      A. 1991 Southern California Water Conservation Campaign

      B. Voluntary Corporate Environmental Programs (Disney's
         Environmentality Program)

      C. Media Evaluation Criteria Sets Guidelines

            1. Sixteen Second Rule

            2. Target Audience Concerns
III. EDUCATIONAL PROGRAMS CAN SATISFY EMISSIONS CREDIT
  REQUIREMENTS

      A. Stationary Source Innovative Offset Bank

            1. Bank Contains Real, Permanent, Quantifiable,
              Surplus and Enforceable Emissions Reduction
              Credits ("ERCs").

            2. ERCs from Bank to Be Awarded on Media Based
              Criteria.

      B. Transportation Control Measure Emissions Credit
        Requirements as Applied to Patron Education
        Programs *
IV. CONCLUSION

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              MEDIA AND EDUCATIONAL PROGRAMS TO
                  ENCOURAGE EMISSION REDUCTION

                           Presentation Summary

                                    by

                               Lynn Sonntag
                              Senior Counsel
                         The Walt Disney Company

                              t
State implementation plans now target behavioral changes necessary to reduce
regional air emissions, especially in serious and extreme non-attainment areas.
Proposed transportation control measures are a clear example of air quality
measures requiring behavioral change. These control measures will succeed only if
a target group is persuaded to alter its customary practices in furtherance of cleaner
air. Disney proposes a program for air districts to award air quality credit as an
incentive for creating educational and media programs aimed at persuading target
audiences to make desired behavioral changes.

This presentation discusses the need for and effectiveness of public education in
achieving behavioral changes. Further discussion will focus on designing air quality
education programs to allow emissions credit awards under EPA guidelines for both
stationary sources and mobile source transportation control measures.

-------
          Sarah Siwek
Employer Based Trip Reduction Programs
 LA County Transportation Commission



        Los Angeles, California

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                EMPLOYER  BASED TRIP REDUCTION PROGRAMS:


                   THE  SOUTHERN  CALIFORNIA EXPERIENCE




                               SARAH J.  SIWEK


              DIRECTOR,  TRANSPORTATION DEMAND MANAGEMENT


                               JANUARY,  1992
Los Angeles County  818 West Seventh Street
Transportation     Suite 1100
Commission       Los Anseles, CA 90017
              Tel 213 623-1194
Leading the Way to Greater Mobility

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 Good morning and thank you for inviting me here today to speak
 to you about the Regulation XV program and Southern
 California's experience with Employer Based Trip Reduction
 Programs.

 I would like to begin by puttinng our air quality and
 transportation problems in perspective.   As most of you are
 aware, Los Angeles and the South Coast Air Basin has the worst
 air quality in the United States and more specifically,  has the
 dubious distinction of being the only extreme non-attainment
 area for criteria pollutants for which there are Federal
 Ambient Air Qualtiy Standards.

 This four  county region has about 13 million people residing in
 it and approximately 7.5 million work trips are made each day.
 A whopping 88% of our carbon monoxide emissions come from motor
 vehicle sources andd all totaled, more than 60% of our total
 emissions  combined come from mobile sources.   Our air quality
 problem is clearly a health problem and  I'd like to share with
 you some of the increasingly well documented evidence of this
 fact.

     Kaye Kilburn,  a University  of Southern California (USC)
 researcher,  found that children raised in the South Coast Air
 Basin  already had 10  to 15 percent less lung function by the
 time they  were in the second grade than  children growing up  in
 Houston, which has lower levels of smog?

     Dr.  Russell P.  Sheridan,  a  USC pathologist studied autopsy
 results  of 100 young accident and homicide victims  from  Los
 Angeles, and determined that over 80 percent  showed evidence of
 lung tissue  damage,  and 27  percent had actual  lesions  on their
 lungs;

     An  11-year-long study performed by a  team  from  the
 University of California at Los Angeles  (UCLA)  confirmed that
 chronic  exposure  to smog damages  lungs,  leaving victims  more
 vulnerable to respiratory diseases such  as emphysema.  Losses
 of  up to 75  percent of  lung capacity were documented;

     Finally,  an Environmental Protection  Agency study  by the
Argonne National Laboratory strongly suggests  that  long-term
exposure to  ozone causes  irreversible lung scarring and  other
damage, which can reduce  life spans.

Given the  weight of  medical  and scientific  evidence, the
Governing  Board of  the  South Coast  Air Quality Management
District (SCAQMD) adopted Regulation XV to  reduce commuting
vehicle trips. The Regulation was  adopted  in December  1987 and
implementation began  in July 1988,  but I would say that  in
earnest; implementation began in  late 1989. I will discuss this
in greater detail later  in my presentation.  The Regulation
                             -1-

-------
 applies to all employers who have more than 100 persons
 employed at a single worksite.  This includes public and
 private employers.

 The performance measure is Average Vehicle Ridership (AYR),
 which simply put means the number of employee trips to the
 worksite between 6  and 10 a.m. Monday through Friday divided by
 the number of vehicle trips during the same period.  The target
 AVR varies within the Basin with downtown Los Angeles employers
 having a 1.75 AVR,  most of the Basin has a 1.5. AVR target,  and
 the far outlying reaches of the Basin haves a 1.3  AVR target.

 This 1.5 AVR is required pursuant to the California Clean Air
 Act and by 1999 all commute trips are to have a 1.5 AVR with no
 net increases in vehicular emissions after 1997. Many of you
 will notice the similarity between Regulation XV and the
 guidance that EPA is publishing regarding the Employer Trip
 Reduction requirements of the Federal Clean Air Act of 1990.

 Now I  would like to discuss some of the  requirements of the
 Regulation XV program.   Each year an employer must submit a
 plan to the AQMD which includes various  components and an
 annual performancee measure of AVR which is calculated through
 a survey of all employees who report between 6 and 10  a.m. at
 the worksite.   A 75% response rate is required of  these
 employees as we want the employer to get an accurate assessment
 of  how his employees commute and what it would take to get them
 to  change their commute mode.   Further,  because we require a
 75% response rate for the survey to be valid and all surveys
 not returned between 75 % and 100% are counted as  drive-alones,
 it  provides an incentive for the employer to get the highest
 return rate possible on the survey.

 Each worksite  must  have an on-site Employee Transportation
 Coordinator (ETC).   This person must complete an AQMD  certified
 training course of  20 hours in the first  year and  an 8  hour
 refresher course each year thereafter.  UMTA released  a  study
 on  trip  reduction programs in  1990 and it demonstrated,  among
 other  things,  that  programs with an  on-site ETC were more
 effective than  programs  without an on-site  coordinator.

 The  development of  the  trip reduction  program begins with the
 survey results.   The  ETC evaluates the survey and  also conducts
 a site analysis to  determine which strategies  might work best
 given the  conditions  at  the site  and the  availability of
 options  to  driving  alone.   The  survey  also  tells how many trips
must be  reduced  each  day in order to attain the target AVR. The
ETC then  develops the strategies  that will  be  utilized at that
site and  includes them  in  the plan.  In a few moments I will
review some examples  of  strategies for you.
                            -2-

-------
 Additional requirements are that the employer must implement
 the plan which the AQMD approves.  Failure to attain the target
 is not,  to date, a violation of the Regulation;  failure to try
 is.  A management commitment letter must be included in each
 plan from the CEO or the highest ranking person  on site.  We
 also have some evidance, albeit anecdotal at this point, on the
 importance of management commitment to the program and its
 relationship to success.

 The AQMD has extraordinary authority under State law and as is
 the case with all of our Regulations,  we have the authority to
 fine a company in violation up to $25,000 per day of
 violation.   We have the authority to asses both  criminal and
 civil penalties.  I must emphasize though,  as of October 1991,
 with over 7000 companies in the program,  fewer than 100
 penalties had been levied and none anywhere near the $25,000
 per day  range.

 Rather,  we  have focused on creative settlements.   Examples
 would be Super Shuttle,  a major airport shuttle  operation who
 settled  with the AQMD by agreeing to convert their fleet to
 propane  fueled vehicles within three years  and the first 25
 vehicles within 1 year.   This company  pumps over 175,000
 gallons  of  gasoline into the air each  month so this  was
 obviously a preferable way to settle this case than  simply
 fining the  company.

 I have been frequently asked whether there  is  any  benefit  to
 pooling  resources among companies.  The answer  to that question
 is  definitely yes and Transportaiton Management  Organizations
 and Associations are  an  ideal way to do this.  Employment
 centers  are another way.   Keep in mind though, that  the
 accountability  rests  with the employer under our program as we
 must  demonstrate to the  California Air Resources Board  and they
 in  turn  to  the  EPA that  the  program is enforceable.

 I also believe  that education is  very  important.  This  effort
 is  a  long term  one and the more educating of the public  that
 can be accomplished,  the  better.

 I know you  are  interested in  knowing what strategies work  best.
 I will begin  by  telling you that  if  we or anyone else had  the
magic  formula we  would have been  using it by now.  Research on
the Regulation  XV program continues  and I am sure that within a
short period  of  time  there will be more definitive information
on this subject.   However, in  the meantime, I will give you
examples of what  companies have been doing and what appears to
be working best.

First of all, we  do have  evidence that combinations of
strategies work better than a  single incentive or two.   In
fact, a UCLA graduate  student did a study of the program which
                              -3-

-------
 showed that companies with seven or more incentives in their
 program were more effective than only one or two.   The point
 here is that you need something for everyone in your program.
 Just as each site is different, each employee is different and
 has different needs in commuting.  The key is to make options
 available and make them more attractive than driving alone.

 A typical program might include:  carpool subsidies, vanpool
 formation and subsidies,  transit passes either free or
 subsidized,  alternative work week programs,  particularly
 compressed work weeks and telecommuting programs.   Parking
 management programs including charging solo  drivers for parking
 are becoming more popular as time goes by and companies don't
 attain their target in the first  year.   Marketing  strategies
 such as raffles,  give aways,  rewards for non-solo  drivers,
 rewards to participants who rideshare or use transit most
 often,  interdivisonal competitions,  free bicycles,  and running
 shoes.

 Also Guaranteed Ride programs seem to be an  important
 incentive.   This is primarily a psychological  incentive in that
 research shows  that these programs are  infrequently used but
 very important  to getting employees  to  even  try ridesharing  or
 vanpooling or transit.  Finally, in the  Regulation  XV program we
 give a  company  credit if  they use  clean fueled vehicles and
 allow those  vehilces to be used by employees  in commuting.

 Now I will provide you  with an overview of three companies
 programs  which  have been  successful.  First  of all,  the Nabisco
 Brands  Company  in Buena Park,  Orange  County.   They  employ 454
 people  and they are a baked goods  manufacturer.  They  have
 regular frequent  raffles  for  employees  who rideshare,  lottery
 tickets,  savings  bonds, dinners, Las  Vegas trips,  limousine
 trips,  car services,  merchandise giveaways, etc.  They have  a
 free bicycle  program, free weekly  lunches, and a computerized
 on-site rideshare  matching system.   In  addition  they have a
 parking management program with prioirty  for carpoolers.

 TRW, a  high-technology  firm with 200  employees  in San  Clemente
 has an  alternative  work hour  program, a vanpool program which
 they subsidy  to stabilize  cost  for employees,  a  100% subsidy
 for vanpoolers  for  the  first  three months, and a $25 finders
 fee for new vanpoolers.  They have a  frequent  rider program
with incentive payments, a  guaranteed ride home program and
 on-site rideshare matching.

The Brunswick Corporation  in Cost Mesa, an aerospace
manufacturer with  293 employees, has a compresed work week,
 flexible starting and ending hours for ridesharers, and an
 incentive program worth $15 to $25 per month and on-site
serviced such as check cashing, notary public, travel agency,
shoe repair, postal services, and dry cleaners.
                               -4-

-------
 What can we all learn from California and what mistakes can you
 avoid?  First and foremost, have an implementation plan before
 the effective date of implementation.  This is critical and the
 reason that I stated earlier that while our program was slated
 to be implemented in summer 1988, which did occur, we really
 did not have a plan and the capacity to begin implementation
 until late 1989.   For example, how are you going to notify
 companies that they need to comply?  I suggest that you not
 take this burden  on but include in the legislation or ordinance
 that it is their  reposnsiblity to come forward.  Identify who
 they are.  We did not know who the companies with 100 or more
 employees were and had to find ways to identify them.

 Consider the training needs and requirements.   How are you
 going to certify  consultants to train? What are the
 requirements? What are the standards? How are you going to
 manage the process? The data collected? Do you need a
 computerized system to track programs and prgress? All these
 elements and many more should be thought through early on so
 that you can be clear to the commmunity on requirements and
 develop equitable standards for implementation and
 accountabi1ity.

 Don't rush to judgement on results.   We are trying to change
 human behavior here and it is going to take time.   Work with
 employers,  without their support and cooperation,  the program
 will fail.   We developed industry groups so that we could
 address the needs of various industries consistently and so
 that they could share information amongst themselves about how
 to  deal with the  requirements given  their operations.  Examples
 are:  the airline  industry,  the sales and services  industry,  the
 grocers,  retailers,  hospitals,  colleges.

 Keep exemptions to a minimum.  In our program there are no
 exemptions.  Don't make the rule industry specific.  I  believe
 that the program  will unravel  quickly if you make  differnt
 rules  for different  industries.   Rather,  try to work  with them
 to  develop  ideas  and strategies that will  be effective and that
 they can embrace.  And finally,  be  fair and  equitable.
 Understand  that an enormous  region  like ours includes  a  very
 diverse community  of  businesses and  public  sector  operations.
 Work within  the constraints  but push the envelope,  if  you will.

 Use  the TMAs  and TMOs  to help move the  program along  and  to
 provide the  expertise  needed to the  business community to
 implement the  program.

 Understand multi-site  employers  and  their needs.  Over 45% of
 all our  sites  in South Coast Air Basin are owned or operated by
multi-site employers.  Be specific about what you want.   Try to
reach CEO's early  and  often.  You need their support.  Get the
 support of labor interests by allowing them to be a part of
program development.
                               -5-

-------
 Now I  will  share with you some early results of the program.
 Seventy-one companies were studied by UCLA/USC researchers and
 this study  is  continuing.  For the first  full year of the
 program these  71 companies went from a 1.22 AVR to a 1.3 AVR.
 They reduced 81,224  work trips and 35 tons of pollutants.  Had
 they attained  the 1.5 AVR target,  they would have reduced
 226,252 worktrips and over 100 tons of pollutants.  So, while
 progress is not  as quick as many would like, it is occuring and
 recent information on over 800 companies  further reinforces
 these  numbers.

 In  closing,  let  me say that Regulation XV is but one program.
 There  are thirty or  so trip reduction ordinances being
 implemented at this  time and you should look at what the others
 are  doing in addition to Regulation XV.   This program and
 programs like it will take time to work.  This is a behavior  '
 change  we are seeking to achieve and it will take time.  Be
 open to ideas and try to be flexible given your mandate.  Work
 with the transportation  community.   Institutions exist that
 might be best equipped to manage these programs.
 Transportation agencies  could  expand their role to that of
 mobility agencies  and increase  ridership  on transit systems
 while  implementing less  traditional  forms of transit,  like
vanpooling,  to support these types  of  programs.

Thank you again  for  inviting me  to  speak.
                             - 6 -

-------
     Terrence Larson
SCRAP (Old Car Buy Back Program)
           Unocal



     Los Angeles, California

-------
A CLEAN-AIR INITIATIVE  FROM UNOCAL

-------
PROBLEM:  L.A.'S  POLLUTED AIR
      On most days, the people of Los Angeles breathe the dirtiest air
of any community in America. As the city's battle with smog enters its
fifth decade, increasing attention has focused on  mobile sources of
pollution — automobiles, trucks, and buses — as key contributors to
the region's air quality problem.
      Mobile sources account for about 60 percent of all o/one-
precursor emissions (hydrocarbons and nitrogen  oxides) in the Los
Angeles Basin. Petroleum refineries  and electric power plants account
for about 5 percent. Other sources (some of which have yet to be
regulated)  such as dry cleaners, bakeries, and even private homes
make up the difference (FitjitiT 1).
      Regulatory agencies and private industry have made excellent
progress over the years in reducing emissions from large stationary
sources. Progress has also been made on mobile sources. In fact, there
have been no Stage III smog alerts in the Los Angeles Basin for 20
years, and no Stage II alerts for 6 years. Nonetheless, much more can
still be done. While technology has sharply reduced emissions from
the tail pipes of late-model automobiles and trucks, nearly  400,000
pre-1971 vehicles —all of which have little or no pollution control
equipment — continue to operate on Southern California's streets
and freeways.
      Mile  for mile, these old cars are the worst polluters on the road.
Although pre-1971 vehicles are a serious source of air pollution —
accounting for about 15 percent of all emissions  from mobile sources
in the L.A. Basin — little has been done about them. Retrofitting
these old cars with up-to-date pollution control systems would cost
more than  many of them are worth.


UNOCAL'S ANSWER
      In mid-1990, Unocal proposed a new approach to the problem.
The company announced a demonstration program to eliminate
several thousand of these vehicles through  a voluntary purchase plan
in which Unocal would pay S700 for each  car, then turn it over to a
I'njnff 1
SOU RC KS OF
I-M INS IONS
  MOBIIT. SOl'RC I.S
  RI-.I-INI-:RI1-:S & 1'OVVI K PL.ANTS
  OTHKK STATIONARY SOl'IU 1 s
UnocnTs innovative SCRAP

fmiijmni was launched on
JltHf 1, 1WO.

-------
  The average SCRAP
  vehicle emitted more
  than 1,500pounds of
  pollutants a year —
  roughly the weight of
  its scrap metal content.
SCRAP TEST CARS VS. NEW CARS
       TIMES
      DIRTIER
       TIMES
      DIRTIER
   SCRAI' CARS   IM'X) CARS
 N c) \   I <: c)  • 11 (
scrap yard to he crushed and recycled.
     The benefits of the program would he quick and cost effective —
a relatively simple hut highly efficient method to improve air quality in
a hurry. If successful, it could also encourage other companies to develop
their own innovative approaches to improving environmental quality.
     UnocaTs South Coast Recycled Auto Project — s( KAI1, for short
 — started with  a budget ot $5 million, enough to  purchase and scrap
7,000 cars. The company estimated that taking this many pre 1971
vehicles out ot circulation would cut I..A.\ air pollution hy ahout
6 million pounds in the first year alone, sc RAP actually did a lot  better
than that. For one thing, other people soon joined the effort — more
than 100 individuals, plus major firms like Ford Motor Company and
Cypress Semiconductor, and regulatory agencies like the South Coast
Air Quality Management District (sc ACJMII).  All contributed additional
money for the program, raising the fund to nearly  S6 million. Another
1,400 cars could he retired, cutting air pollution that much more.
     But the biggest surprise was the final tally on exhaust emissions
actually eliminated. L'nocal tested the tail pipe emissions of every old
car purchased for sc RAP. F.arly results suggested  that these vehicles
were far dirtier  than air quality models had predicted. As a result,
Unocal arranged to have rigorous emissions tests performed on 74
cars selected at  random from the sc RAP vehicles. The results were eye-
opening: On a  per mile basis, the average hvdrocarbon ( 11C) emissions
of the sample group were triple our expectations, and carbon monoxide
(CO) was double  (t-ijjnrc 2). Only in emissions of  nitrogen oxides
( NOx) die! cars  in the sample  group prove "cleaner" than expected,
although they were still 1 1 times dirtier than a 1990 vehicle.
     I'nocaPs SCRAP program actually removed  nearly 1 3 million
pounds of pollutants from Southern California's air, or twice as much
as projected when the program was launched. From  an emissions
standpoint, this was the equivalent ot removing about  150,000 brand
new cars from the roads.
     We also learned that sc RAP vehicles were driven on average 5,500
miles per year or about 90 percent as far as average old cars. Thus,

-------
SCRAP vehicles were driven somewhat less than average but emitted far




more pollution than expected.




     These pre-1971 cars were among the least energy-efficient vehicles




on the road, averaging 12 miles per gallon in city driving,, about halt




the fuel economy of 1990 cars. In tact, had the SCRAP vehicles been sold




as 1990 model-year cars, they would have been subject to an average




"Gas Guzzler Tax" of $2,500 each!








MAKING IT  WORK




     On the face of it, buying and destroying 8,400 old cars in a com-




munity with nearly 6 million vehicles doesn't seem all that difficult.




But .SCRAP- planners had to deal with several pressing issues before the




program could  begin.




     First of all, what would the owners of such cars do for trans-




portation once  their vehicles were scrapped? Would S700 be enough




to buy a replacement car? Unocal surveyed the used car market in




Southern California and learned that, indeed, many post-1975  cars




were priced below S700. What's more, these autos were equipped with




smog controls,  so that replacement transportation would be not only




affordable, but  cleaner as well.




     Second, Unocal wanted to be sure the cars purchased tor SCRAP




were in running condition and registered in the Los Angeles Basin




for at least six months.  In short, SCRAP vehicles had to be part of L.A.'s




air quality problem, not someplace else's.




     Finally, Unocal had to find a way to speed up the  administrative




process of scrapping the vehicles.  Ordinarily, it takes five to ten days




for a scrap yard to complete the paperwork before a car can be  legally




crushed and shredded in Southern California, With 100 to  150 cars




going through  the SCRAP program each day, such delays would have




required a huge parking area in which to hold the vehicles while they




were being processed.




     Recognizing the potential value of the SCRAP program, the Depart-




ment of Motor  Vehicles assigned special personnel to the project. These




individuals handled the paperwork right at Hugo Neu-Proler's Down-

10
                    0(dCT
Polluters.
                       °ftJie
                            worst
           ']'of>: An attendant conducts




           an cjnissions test on a ,s< 'RAT




           vehicle; bottom: Old cars arc




           checked in at the scrap yard.

-------
                                             town Los Angeles Metal Center, where the cars were crushed, cutting

                                             processing time down from several days to a tew minutes.
                  as

      Kelp  fi^*  sm°g
                  -  ^:srg£
  B-e-7/  ora  §£5^
  to Z>£ #0z/g/^
  #y  t/#0oj/     IBISES
    •/                   VF 8"° OP^ rf. ,,,,11= about it
By CYNDIA ZWAHLEN        "Part.ap.t« i
Daily News Stall Wfiler          ,r will have I

  Unocal Corp. said Thursday S**"'^
it will buy and scrap 7,000 pre- )nlyc"
1971 cars from Los Angeles
area drivers as one of several
environmental initiatives to re-
duce smog and gel older cars off
ihe streets.
  The Los Angeles-based oil
     e ^"mpany »'  raid it-
                                onths
                              •     -jj receive a
                            /1'hc,own" ct,er for use
                            k »nd ft vouv.
                                     wovild
                                     -.nine
Top: All cars were numbered in

sequence as they were received;

opposite: Richard ]. Stajoncicr,

Unocal chairman, president and

('EO, is a leading proponent of

cost-effective, market-based solu-

tions to environmental problems.
SCRAP  TAKES  OFF

     With these questions resolved, the program was announced in

late April of 1990, and Unocal began taking phone calls on May 2.

The response was immediate. More than 3,000 calls were received the

first day, and within two days  1,500 old cars were registered in the

program. Eventually, appointments were made to scrap nearly 8,400

vehicles, and at times the waiting list grew to 2,000.

     Unocal made it as easy as possible tor qualified car owners to

turn in their vehicles. Hach caller was given a date and time to bring

in the car. Checks to the sellers were then pre-printed. If the cars

were delivered as promised, and  the other conditions were met, the

$700 checks were handed over at once. The company made a special

ettort to avoid scrapping classic cars and other valuable vehicles.

     A few owners found it difficult parting with cars that had been

with them for decades. Others pocketed their checks and walked away

smiling. Some changed their minds and tailed to keep their appoint-

ments at the scrap yard.



MEASURING THE RESULTS

     lust how dirty were the tail pipe emissions of the 8,376 cars that

went through SCRAP? As Unocal  launched the program, it was known

that pre-1971 cars contribute a disproportionate share ot air pollution

to the L.A.  Basin (Figure 3). California Air Resources Board (CARB)

data led the company to expect the typical pre-1971 car to pollute 15

l-'ifjnre .?
FLEET PROFILE: L.A.

Number Cars, 1000s
Number Miles, Millions
HC, Tons Per Day
CO, Tons Per Day
NOx, Tons Per Day
AREA
PKK 71
380
2,280
57
345
30

ALL CARS
6,000
73,278
266
2,275
234

% OF TOTAL
6
3
22
15
13

-------


I






                                                                                              ;;
                                                                                                                               I

                                                                                                                               -
                                                                                                              -
                                                                                                                                                                                                                           I



-------
   The worst car tested
   emitted enough un-
   burnedgasoline from its
   tailpipe to run a brand
   new vehicle getting 32
   miles per gallon.
Tap and bottom: SCRAI' can enter
the crusher at the Hitjju Neit-
Proler (.lompanv's met til center
near downtown Los Angeles.
to 30 times more per mile than new vehicles, hut nohody was sure
how dirty the old cars actually were.
      Unocal set out to measure the exhaust emissions at idle tor every
vehicle purchased. It soon hecame clear that these cars polluted tar
more than the average car. In tact, ahout 20 percent ot the vehicles
"pegged" (exceeded the measuring capabilities of) the BAK-90 Smog
Check machines at 2,000-plus parts per million of hydrocarbon.
      Unocal decided to get more definitive data hy subjecting a ran-
dom sample of the cars to the tar more sophisticated and rigorous
Federal Test Procedure. This test measures emissions under varying
speed and load conditions and is the same test used to certify new cars.
CAKB, an active supporter ot this decision, tested 43 cars, while Unocal
arranged for 31 to he tested at an independent lab.
      Working together, ( ARE and Unocal have probably amassed the
world's best data base  on the emission characteristics of old cars. The
results showed that the pre VI  cars were two to three  times as dirty as
expected — in some categories  more than 90 times dirtier per mile than
a new vehicle.


SCRAP  IN HIGH  GEAR
      By almost any measure, SC:RAP was highly successful. It drew
praise from such long-term advocates of clean air as Norton
Younglovc, chairman of the South Coast Air Quality Management
District, who said, "Unocal's contribution not only meets the
challenge, but also illustrates the commitment and leadership we
must  all exert to make clean air a reality  in Southern California."
      Hundreds of individuals wrote or called Unocal in support of
the program. Many backed up their praise with financial contribu-
tions. The CHO of Cypress Semiconductor, based in San  lose, sent
in the first check for S700 with the  comment, "Buy and bury one
for  us, too." Ford Motor Company contributed enough money to
scrap  an additional 1,000 cars, the SCAQMD donated $100,000,
and the Southern California Ford and Lincoln-Mercury Dealers
Association, another $63,000.

-------
     Others provided incentives of their own. First Interstate Bank

set up a special loan program tor s< RAP participants, otFering lower

interest rates and longer repayment terms on some new and used

vehicles. Ford ottered participants  special rebates on new cars.

     Government agencies also caught the spirit bv cutting red tape

and providing personnel and equipment tor clearing auto registrations

and conducting smog tests. The California Air Resources Board

laboratory tested emissions from s< RAP vehicles, the Bureau ot

Automotive Repair  researched odometer readings, and the Department

of Motor Vehicles  provided on-site personnel and computers.


THE  IMPLICATIONS OF  SCRAP

     The success of SCKAP brought  renewed attention to innovative

approaches to environmental problems. In particular, it highlighted

the opportunity tor regulators to create conditions that would make

programs like SCRAP economically feasible for many companies in the

Los Angeles  Basin.  The device that could  make  this work is called an

"offset,11 and regulators began viewing it with renewed interest in the

wake of sc KAP\ results.

     Offsets are credits that companies could receive tor cleaning up

air pollution  from mobile sources — air pollution caused by some

other organization  or individual. These credits could temporarily

offset the same amount of the company's own pollution "debt" (i.e.,

emissions from its own stationary sources).

     Offsets would not necessarily cancel a company's pollution debt;

they might simply deter it, providing time to explore more cost-effec-

tive technologies and  systems for cleaning up the air.

     Through a program ot innovative offsets supplementing the

existing regulatory  framework, companies and public agencies could

he encouraged to tocus their efforts  on  the most cost-effective and

immediate environmental programs. Properly used, offsets could

accelerate the cleanup process, get the easiest (am.) often worst) causes

ot smog cleaned up first, and save  money tor the consumer, who

ultimately pays the  cost ot pollution  abatement and control.
  Kach year for the first three
  years the total emissions
  eliminated by crushing the
  8,376 cars in SCRAP equal...
             1 he total emissions
             ol InO.OOO brand
             ne\\ ears

             the total emis
             sions trom I mil
             lion gallons o! t nl
             based [taint

             over hall'the CO
             emissions trom all
             the refineries and
             pouir plants in the
             1..A. Basin

             all ol'the hydro
             carbon emissions
             of all barbecue
             lighter Hinds in
             the I..A.Basin
Lhiocal C.liamnan Richard ].

Stejjemt'ier describes the SCR AT

pnitjrnm at the kickoffpress

conference.

-------

-------
SCRAP:  TEST RESULTS IN  DETAIL

      Unocal's SCRAP program  removed 8,376 pre-1971 vehicles from

Los Angeles area roads between  June  1 and September 29, 1991. As a

result, 12.8 million pounds of potential air pollution (hydrocarbons,

carbon monoxide, and nitrogen oxides) were removed from L.A.'s air

each year.

      Most ot the vehicles scrapped were large American cars:  60

percent had eight-cylinder engines and 24 percent had six-cylinder

engines. The balance were smaller foreign cars ( h'icittrc 4). Klcven

percent of the vehicles were trucks and vans.

      The Federal Test Procedure.  Unocal, working closely with the

California Air Resources Board, selected 74 of the SCRAP cars for in-

tensive emissions testing. Forty-three vehicles were tested at CARH

facilities, and 31 were tested at  an independent laboratory.  Hach car

was put on a chassis dynamometer and run through the standard

Federal Test  Procedure (FTP).

      The IIP is the same test procedure used with new cars to de-

monstrate that they meet mandated emissions levels. The procedure

involves a series of driving cycles performed on a chassis dynamometer,

which allows a vehicle to be tested at  speed and under load conditions.

      The first and third cycles are identical, except that the first  cycle

begins with a cold start. Simulated speeds range up to 60 miles per

hour.  The second cycle  is a low  -speed test involving simulated "stop

and go" city driving.

      In relatively new cars, most of the emissions are collected in the

cold start phase before the catalyst warms up to operating temperature.

The SCRAP vehicles, however, produced substantial emissions under

virtually all driving conditions.

      The 1TP test results for all  74 cars are summarized in Figure 5 on

page  10. These findings were then compared with projected emissions

based on the Motor Vehicle Emissions Factor (I-.M1AC 7l>) modeling
 VEHICLES
 S( RAPPED
^

                      h(>".> I-Hill I
                      ( 'l I.INDl'.K
                      1-NXiINI-s
                  24% SIX
                  ( VI INIM'K
                  I-NC.IN1-S
               I (A, HH'K
               i \l INHhR
               I NUM-.s
 Op/insitr: The crusher goes to
 work 011 an old car.

-------
                    Figure 5
                    FTP  CVS-75  TEST  RESULTS —  74 CARS

'67 MERCURY COUGAR
'70 CHRYSLER IMPERIAL
'68 BUICK SKYLARK
'69 MERCURY COUGAR
"66 FORD GALAXY
'70 CHEVROLET NOVA
'69 CHEVROLET MALIBU
'67 CHEVROLET CHEVELLE
'67 AMC RAMBLER
'64 PLYMOUTH FURY
'70 FORD WAGON
'67 PONTIAC TEMPEST
'65 DODGE POLARA
'66 FORD RANCHERO
'68 DODGE DART
'67 CHRYSLER NEWPORT
'65 PONTIAC TEMPEST
'69 BUICK ELECTRA
'70 FORD MAVERICK
'68 TOYOTA CORONA
'70 PONTIAC LEMANS
'70 FORD CORTINA
'68 FORD FALCON
'70 BUICK ELECTRA
'68 MERCURY MONTEREY
'65 CHRYSLER NF;W YORKER
'64 BUICK SKYLARK
'66 CADILLAC DEVILLE
'70 FORD MAVERICK
'70 CADILLAC DEVILLE
'69 BUICK WILDCAT
'69 DODGE CORONET
'70 PLYMOUTH FURY
'64 PLYMOUTH VALIANT
'69 VOLKSWAGEN BEETLE
'67 VOLKSWAGEN BEETLE
'70 BUICK LESABRE
'66 BUICK SKY LARK
'71 FORD LTD WAGON
'65 OLDSMOBILE F-85
'69 CADILLAC DEVILLE
'70 VOLVO
'70 FORD LTD
'69 DODGE DART
'67 FORD MUSTANG
'68 MERCURY MONTEGO
'70 CHEVROLET NOVA
'68 FORD FALCON
'68 BUICK SPECIAL
'70 CHRYSLER IMPERIAL
'67 TOYOTA CORONA
'70 FORD MAVERICK
'70 DODGE DART
'70 TOYOTA CORONA
'69 CHEVROLET IMPALA
'65 CHEVROLET VAN
'67 BUICK SPECIAL
'63 DODGE DART
'69 CHEVROLET IMPALA
'68 AMC RAMBLER
'66FORDFAIRLANE
'70 TOYOTA CORONA
'70 FORD MUSTANG
'68 CHEVROLET IMPALA
'70 LINCOLN CONTINENTAL
'67 DODGE DART
'62 PONTIAC TEMPEST
'70 FORD LTD
'70 FORD MAVERICK
'70 CHEVROLET IMPALA
'70 BUICK SKYLARK
'68 VOLVO WAGON
'70 TOYOTA COROLLA
'65 FORD
H C
17.5
6.7
14.6
15.0
6.7
2.0
8.6
4.3
9.6
51.3
4.9
31.4
27.5
8.3
3.2
18.1
7.5
2.8
5.3
3.8
87.4
10.8
4.6
6.4
5.1
8.1
31.2
2.2
2.1
39.4
3.9
5.5
10.6
66.9
3.8
7.1
13.3
39.8
6.0
8.6
3.7
51.5
28.4
3.7
5.1
4.4
4.3
11.1
65.5
6.0
3.8
4.8
51.6
16.8
49.7
17.1
20.7
5.8
14.9
3.8
80.7
3.6
9.5
37.3
5.1
8.6
5.0
13.7
3.1
32.2
2.4
4.4
11.4
3.5
G RAMS /
CO
16.6
129.4
87.2
250.2
123.7
22.2
118.0
52.4
151.0
90.6
63.7
62.4
68.5
67.3
66.7
163.4
111.7
46.1
125.4
78.4
126.8
163.7
50.6
104.1
54.3
132.8
56.9
26.0
12.0
135.3
52.9
70.3
149.7
76.3
41.6
71.7
126.4
128.5
48.0
117.5
34.6
101.5
22.0
43.9
57.4
79.2
58.4
77.0
88.4
144.1
24.5
112.6
169.2
76.6
67.4
79.3
210.5
77.2
82.9
45.6
123.5
44.0
80.4
110.6
15.4
160.7
62.6
72.7
22.2
71.9
20.8
32.8
87.1
41.3
Ml I.E
NO ~\~
3.28
1.77
1.13
0.57
2.04
2.76
2.35
3.91
1.26
3.59
4.26
5.51
4.05
1.47
4.19
2.63
2.97
3.81
0.99
3.56
4.35
0.45
5.72
2.82
2.98
0.89
3.03
3.41
3.27
0.93
4.01
3.34
2.29
3.59
1.04
1.16
1.60
1.36
6.62
1.92
3.19
1.45
3.96
7.34
1.87
1.72
2.15
2.72
4.87
1.58
2.56
1.28
0.86
2.39
2.87
5.49
0.29
5.72
2.51
3.16
1.32
4.25
2.34
5.81
6.64
0.85
3.88
7.06
3.39
3.72
2.52
3.07
0.82
4.73
P M • 1 0 •







0.26
0.20
16.76
0.29
0.44
0.20
0.69








0.22
0.12
0.18
0.20
0.61
3.45
0.14
0.10






0.81
0.50
0.37
0.43
0.97
0.65
7.74
0.45







0.59
0.95
0.28
1.01
4.37
2.86
0.57
0.47















•CITY-
MILES PER
GALLON
13.4
8.9
12.8
10.1
12.2
15.2
8.5
11.7
14.1
10.4
10.0
12.7
10.5
14.0
16.6
9.8
13.2
10.9
15.4
18.2
7.2
14.7
14.0
9.7
9.6
10.6
13.1
9.2
15.2
8.4
10.0
14.2
9.8
12.9
21.0
22.2
10.8
9.4
10.5
10.5
8.3
10.8
9.0
16.1
18.3
12.5
16.0
14.9
10.4
9.9
20.8
16.2
11.4
16.4
10.9
11.8
9.1
13.1
9.6
17.4
9.2
22.0
16.6
10.0
11.9
14.3
16.9
10.8
13.3
11.6
11.5
18.3
22.1
14.8
                    AVERAGE
                                                    16.3
                                                                  84.3
                                                                               2.96
                                                                                         1.51
                                                                                                    12.1
                    *Only 31 vehicles were tested for participate emissions.
10

-------
program used by C.ARB, as shown in Figure 6 .




      Hydrocarbon emissions from the SCRAP vehicles were 99 times




greater than from a 1990 car. That is nearly three times what had been




expected: 24.8 grams per mile (actual) versus 8.3 grams per mile




(projected) for the typical pre-1971 car.
FTP TKST RESU
SCRAP test results
FTP Results
Adjustments*
"IN-USE" Emissions
LTS VS. PROJECTIONS (GRAMS PER MILE)
HC
16.28
8.49
24.77
CO
84.3
16.5
100.8
NOx
2.96
-0.02
2.94
PM10
1.51
—
1.51
Air quality model EMFAC-7D
'66-'70 Cars
1975 Cars
1990 Cars
8.34
3.88
0.25
50.1
23.4
1.8
4.39
2.53
0.27
0.54**
0.30**
0.21**
 • To reflect non-tail pipe emissions and scale to 16 mph. ** Includes participates from tire wear.





     The FIT results for .SCRAP vehicles actually understate the true




emission levels. First, they include tail pipe emissions only. Typically,




evaporative emissions would add another 4 to 5 grams ot hydrocarbon




emissions per mile, while running losses would add another 1 to 2




grams per mile. That is why the FIT results were adjusted in Figure 6




(using KMI-'AC model methodology) to reflect total "in use"emissions.




As a result, total hydrocarbon emissions from SCRAP vehicles were nearly




 100 times greater than HC emissions from a brand-new car. Carbon




monoxide emissions were more than 50 times greater.




     Individual test results varied widely. The worst 10 percent of the




cars contributed 40 percent of the HC emissions (Figure 7), about 20




percent of the CO emissions (Figure 8), and 20 percent of the NOx




emissions (Figure 9).




     The FIT results may be conservative because the cars selected for



t-iflHtr 1(3
SCRAP HC  EMISSIONS
                                                                                     SCRAP CO EMISSIONS
SCRAP NOx  EMISSIONS
  M M IU-K oh I I
EMISSION TESTS AT IDLE
NUMBER CARS
FTP Vehicles 74
All SCRAP Vehicles* 8,335
Difference

HC(PPM)
842
1,014
-172
BBBI
CO (%)
3.8
3.6
0.2
* Excludes cars with bad exhaust systems.
                                                                                     11

-------
t-ijjmr 11

HOUSEHOLD

INCOMK
m.STKI lU'TION
                  .?4"-n Rl 1 IM I)
                  '!() ANSW1-K


             25'!,, S20.000 OK l.l.ss


        22'!,, $20,000 10 t40,000


    I Tin HIT S40.IIOO
TRAN.SPOR 1 ATION
ARRANtil-Ml-.NTS
AFTF.K  SCRAI'
                 46". lUH'din
                 ANOTIlhR VI.I IK I.h
      4% I'SINC, 1'1'lil !<
      TRANSPORTATION
   4",, DON1'! HKIVh
   OR DON" I  KNOW
testing were somewhat cleaner than the average SCRAP vehicle at idle,

as shown in Figure 10 on page 11. In addition, 65 percent of the cars

examined tor FTP testing were rejected because of leaky exhaust sys-

tems, excessive smoke, or other problems.




THE FOLLOW-UP SURVEY

     To discover more about the impact of"SCRAP, Unocal asked

Fairbank, Bregman & Maullin,  Inc. (I-B&M) — an independent public

opinion research company — to contact a sample group of SCRAP par-

ticipants after the program was over. In January 1991, FB&M conducted

telephone interviews with more than 800 individuals.

     The demographics of the SCRAP participants generally reflected

the population of the South Coast Air Basin. However,  SCRAP partici-

pants were  on average somewhat older, much more likely to be male,

and reported IS percent less household income (Figure 11). Of SCRAP

participants interviewed, nearly  half were employed full time, 24 per-

cent were retired,  10 percent were employed part time, 8 percent were

unemployed, and the rest were homemakers or students, or they

refused to answer the question. Sixty-two percent identified themselves

as white, 25 percent as Hispanic or Latino, and 8 percent as black.

     Eighty-eight percent of respondents indicated that they were

using their  old cars before putting them into the SCRAP project.  Half

the respondents were driving their cars every day, and 29 percent

were driving their cars at least a few times per week. Sixty-five percent

used their cars primarily to commute to work, and the rest either to

run errands or go to school.

     Forty-six percent of the principal drivers of the cars sold to SCRAP

bought another vehicle, 42 percent were using another car, 4 percent

were getting rides, and 4 percent were using public transportation

(Figure 12). Of those driving replacement vehicles, more than 80 per-

cent were behind the wheel of a newer (1975  or  later),  less polluting

car. The net result: Cleaner air for Los Angeles.
                          12

-------
      Marian Slavin
   Travel Reduction Program
Pima Association of Governments



       Tuscon, Arizona

-------
       PIMA ASSOCIATION OF  GOVERNMENTS
                             405 TRANSAMER1CA BUILDING
                               TUCSON. ARIZONA 85701

                                 (602) 792-1093
                        TRAVEL REDUCTION PROGRAM
                               TUCSON, ARIZONA
                                  FACT SHEET
      The Travel Reduction Program (TRP)  is  the result of local ordinances
passed in early 1988 by five  local jurisdictions  (Pima County,  City of
Tucson, City of South Tucson,  Town of  Marana, and Town of Oro Valley).   The
objectives of the ordinances  are  to improve  regional air quality and reduce
traffic congestion by requiring that Major Employers (over 100 full-time
equivalent 'employees at a single  site)  achieve a  15Z utilization of alternate
modes (carpool, vanpool, bicycle,  walk, or transit) or 15Z reduction in
Vehicle Miles Traveled (VMT)  by their  employees in their daily work commute.

      Employees that work compressed work weeks, utilize telecommuting or
commute in compressed natural gas powered vehicles receive AMU credit.   The
15Z alternate mode utilization (AMU) should  be achieved by the end of the
first full year of participation  in the TRP.  The second and third year
alternate mode utilizations are 201 and 25Z  respectively.  An employer may
alternatively comply with the ordinances  by  achieving a 15Z, 20Z, and 25Z
reduction in vehicle miles traveled in the first, second, and third year.

      The TRP regional implementation  is  centralized at Pima Association of
Governments (MPO) and overseen by the  Travel Reduction Program Regional  Task
Force (TRP RTF) as established by the  April  1988  Intergovernmental Agreement
among the five jurisdictions  with Travel  Reduction Ordinances.  Eastern  Pima
County is a non-attainment area for Carbon Monoxide.

      Every year Major Employers  are required by ordinance to:  conduct  a
survey of all employees, disseminate alternate mode information, appoint a
transportation coordinator and produce a  TRP Plan detailing how they are going
to encourage their employees  to utilize alternate modes in their daily home-
to-work commute.

      Approximately one-third of  the regional workforce is participating in
the program with an annual budget of $300,000.  The regional daily average
one-way work commute is 10.6  miles.

                                    TRP REGIONAL RESULTS
                              1-12/89     1-12/90     1-6/91

0 Sites in Program            148        154         162
# Employees                   75,000     77,000      80,000
Alternate Mode Utilization    17.59Z     20.21Z      22.31
Vehicle Miles Traveled        47.29      45.90       45.5
Alternate Mode Utilization credit  accrues when an employee uses an alternate
node at least 1 day/week in the work commute.

Vehicle Miles Traveled are factored by mode  ridership and are one-way weekly
motor vehicles miles only.

-------
     Of the  145  companies that  completed the TRP survey  in both 1989 and  1990, 95
     sites  (661)  have shown an  increase in alternate mode  utilization and 91 (63%)
     have shown  a decrease in vehicle miles traveled in  the daily work  commute.
                                      Alternate Mode Utffizatton
                                             lnlC
                                              US
                                                      66% of the Trad Reduction
                                                      Program 1990 sfteshwe
                                                      inuwi M\ nciMM in the*
                                                      Atemrie Mode Uffotion.
                              Awio»sae%
                              Avmot s -4.5%
                                                                                 Ste>
\ Chang*
                                     Vehicle Miles Traveled
                              •80 Baseline vs. W Fnt Compfanc* S«v«y
                                                       63% of ttwTtiMl RwhKtian
                                                       Program 1960 MM tarn
                                                       ihon > reduction in thifr
                                                       fMran Vshteto Mtat TrMtal
     For additional information or copies of  the Program Annual Report,  please
     contact:  Marian A.  Slavin, Travel Reduction Program Manager,  (602) 792-2952,
     Pioa Association of  Governments, 177 N.  Church, Ste. 405, Tucson,  AZ  85701.

     7/26/91

-------
Participant List

-------
                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Charles Aarni
Regulatory Agency Liason
Chevron USA Products
P.O. Box 97
El Segundo, CA  90245
(213)615-5285
Steven Ahearn
Dept. of Commerce, Energy Office
3800 North Central Ave.
Suite 1200
Phoenix, AZ  85012
(602)280-1420
Vince Albanese
Mgr., Marketing & Technology
Nalco Fuel Tech.
P.O. Box 3031
Naperville, IL
(708)983-3254
Glen Anderson
Senior Economist
Environmental Defense Fund
128 E. Hargett St.
Raleigh, NC  27601
(919)821-7793
Bob Anderson
Research Manager
American Petroleum Institute
1220 L St., NW
Washington, DC  20005
(202)682-8534
Edward Apple
Dir. of Envir. Strategies
S C Johnson Wax
1525 Howe St., #105
Racine, WI  53403
(414)631-2761
Jane Armstrong
Sr. Project Manager
U.S. EPA, QMS
2565 Plymouth Road
Ann Arbor, MI  48105
(313)668-4441
Dale Aspy
U.S. EPA, Region 4
Mobile Source Task Force
345 Courtland St.
Atlanta, GA  30365
(404)347-5014
John Atcheson
Pollution Prevention Division
U.S. EPA, OAR
Waterside Mall
401 M St., SW  (PM-222B)
Washington, DC  20460
(202)260-4164
Beth Auerbach
Of Counsel
Oppenheimer, Wolff, & Donnelly
1020 19th St., NW, Suite 400
Washington, DC  20036
(202)293-5096
       The U.S. Environmental Protection Agency
            OAQPS - Office of Air Quality Planning and Standards
            OAR   - Office of Air and Radiation
            OE    - Office of Enforcement
            OMS   - Office of Mobile Sources
            OPAR  - Office of Policy Planning and Review
            OPPE  - Office of Policy, Planning and Evaluation

-------
                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Charles Aarni
Regulatory Agency Liason
Chevron USA Products
P.O. Box 97
El Segundo, CA  90245
(213)615-5285
                     Steven Ahearn
                     Dept.  of Commerce,  Energy Office
                     3800 North Central  Ave.
                     Suite 1200
                     Phoenix, AZ  85012
                     (602)280-1420
Vince Albanese
Mgr., Marketing & Technology
Nalco Fuel Tech.
P.O. Box 3031
Naperville, IL
(708)983-3254
                     Glen Anderson
                     Senior Economist
                     Environmental Defense Fund
                     128 E. Hargett St.
                     Raleigh,  NC  27601
                     (919)821-7793
Bob Anderson
Research Manager
American Petroleum Institute
1220 L St., NW
Washington, DC  20005
(202)682-8534
                     Edward Apple
                     Dir.  of Envir.  Strategies
                     S C Johnson Wax
                     1525 Howe St.,  #105
                     Racine, WI  53403
                     (414)631-2761
Jane Armstrong
Sr. Project Manager
U.S. EPA, QMS
2565 Plymouth Road
Ann Arbor, MI  48105
(313)668-4441
                     Dale Aspy
                     U.S. EPA, Region 4
                     Mobile Source Task Force
                     345 Courtland St.
                     Atlanta,  GA  30365
                     (404)347-5014
John Atcheson
Pollution Prevention Division
U.S. EPA, OAR
Waterside Mall
401 M St., SW  (PM-222B)
Washington, DC
(202)260-4164
20460
Beth Auerbach
Of Counsel
Oppenheimer, Wolff, & Donnelly
1020 19th St., NW, Suite 400
Washington, DC  20036
(202)293-5096
       The U.S. Environmental Protection Agency
            OAQPS - Office of Air Quality Planning  and  Standards
            OAR   - Office of Air and Radiation
            OE    - Office of Enforcement
            QMS   - Office of Mobile Sources
            OPAR  - Office of Policy Planning  and Review
            OPPE  - Office of Policy, Planning and  Evaluation

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Jim Austin
Ass't. to Senator Owen
NY State Senate
310 Legislative Office Bldg.
Environmental Conserv. Committee
Albany, NY  12247
(518)455-3411
Rick Baker
Environmental Scientist
Radian Corporation
P.O. BOX 201088
Austin, TX  78720-1088
(512)454-4797
Rosie Barrera
Director, Environmental Affairs
Greater Houston Partnership
Government Relations Dept.
1100 Milam, 25th Floor
Houston, TX  77002
(713)658-2430
Adrian Barrera-Roldan
Researcher
Institute Mexicano del Petroleo
Eje Central Lazaro Cardenas #152
Mexico City, 07730 Mexico, D.F.
011-525-567-9246
Dave Bassett
Pollution Prevention Division
U.S. EPA, OAR
Waterside Maqll
401 M St., SW,  (PM-222B)
Washington, DC  20460
(202)260-2720
Chuck Bausell
Asst. Dir. RCED Economic Anal.
U.S. General Accounting Ofc.
Rm. 1826
441 G Street, NW
Washington, DC  20548
(202)376-9725
Group
Christl Beck
Mgr., Commodity & Envir. Taxation
Ministry of Treasury & Econ.
7 Queens Park Crescent
Frost Bldg., 5th Floor
Toronto, Ontario  M7A 1Y7 CANADA
(416)327-0234
Catherine Beckley
iegal ..& Regulatory Counsel
Cosmetic Toiletry Fragrance Assn.
1101 17th St. NW
Suite 300
Washington, DC  20036
Marijke Bekken
Assoc. Air Pollution Specialist
Air Resources Board
Off-Road Control Section
9528 Telstar Ave.
El Monte, CA  91731
(818)575-6684
Laura Bishard
Colorado Dept. of Health
Clean Air Colorado
4210 East llth Ave.
Denver, CO  80220
(303)331-8559

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Ray Bishop
Mgr.,  Air, Waste, & Vector Programs
Tulsa City/County Health Dept.
4616 E. 15th Street
Tulsa, OK  74112
(918)744-1000
Buz Breedlove
Senior Consultant
California Senate Office of Research
1020 N Street
Suite 565
Sacramento, CA  95814
(916)445-1727
Jack Broadbent
Office of Planning & Rules
South Coast AQMD
21865 E. Copley Drive
PO Box 4939
Diamond Bar, CA  91765-0938
(714)396-3119
Jack Brown
Environmental Health Director
City-County Health Dept.
1900 East 9th St.
Wichita, KS  67214
(316)268-8457
Cy Buchert                           Jan Bush
Dir., Div. of Policy Analysis & Plnn Deputy Air Poll. Control Officer
Dept. of Environmental Quality       Bay Area Air Quality Mgmt. Dist.
PO Box 82263                         939 Ellis St.
7290 Bluebonnet Dr.                  San Francisco, CA  94109
Baton Rouge, LA  70884-2231          (415)749-4943
(504)765-0735
Larry Byrum
Dir., Air Monitoring & Analysis Div.
Oklahoma State Dept. of Health
1000 N.E. 10th St.
MCO201
Oklahoma City, OK  73117-1299
(405)271-5220
Kateri Callahan
Legislative Professional
Van Ness, Feldman & Curtis
1050 Thomas Jefferson St., NW
Washington, DC  20007
(202)298-1800
Laurel Carlson
Dept. of Envir. Protection
Air Quality Control
1 Winter St., 7th Floor
Boston, MA  02108
(617)292-5630
Kathy Carruthers
Economics Unit Leader
WA State Dept. of Ecology
MS-PVll
Olympia, WA  98504-8711
(206)459-6014

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Lisa Carter
Research Assistant
Jack Faucett Associates
4550 Montgomery Ave.
Suite 300 N
Bethesda, MD  20814
(301)961-8800
J.Cale Case
Vice President
Palmer Bellevue Corporation
111 W. Washington St.
Suite 1247
Chicago, IL  60602
(312)807-4848
John Chamberlin
U.S. EPA, OPPE
401 M Street, SW, (PM-221)
Washington, DC  20460
(202)260-2762
David Clarke
Managing Editor
Inside EPA Weekly Report
PO Box 7167
Ben Franklin Station
Washington, DC  20044
(703)892-1011
Sandra Colt
Program Director
American Lung Association
723 Piedmont Ave., NE
Atlanta, GA  30365-0701
(404)872-9653
Dave Conroy
U.S. EPA, Region 1
JFK Federal Bldg.
Rm. 2203
Boston, MA  02203-2211
(617)565-3254
Nancy Cookson
Counsel
Chemical Manufacturers Assn.
2501 M St., NW
Washington, DC  20037
(202)887-1241
Linda Cooper
Workshop Coordinator
Radian Corporation
P.O. Box 13000
3200 Chapel Hill Rd./Nelson Hwy.
Research Triangle Park, NC  27709
(919)541-9100
Steven Coppola
Counsel - Legal Dept.
DuPont Company
1007 Market St.
(D-7152)
Wilmington, DE  19898
(302)773-0149
Andres Corona Juarez
Division Estudios Economicos
Institute Mexicano del Petroleo
M-40, L-23, Ila Sec. Ermita Z
Mexico City, 09180 Mexico, D.F.
011-525-368-2313

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Linda Critchfield
U.S. EPA, ARD
401 M Street, SW,  (ANR-445)
Washington, DC  20460
(202)260-7915
Ted Cromwell
Manager, Air Programs
Chemical Manufacturers Assoc.
2501 M Street, NW
Washington, DC  20037
(202)887-1383
Rosalie Day
Economist - Air Division
U.S. EPA, Region 5
77 W. Jackson, AT-18J
Chicago, IL  60604
(312)353-632
David DeBruyn
Grants Manager
U.S. EPA, Region 10
1200 Sixth Ave.
Seattle, WA  98101
(206)553-4218
Leland Deck
Economist
U.S. EPA, OAQPS
MD-12
Research Triangle Park, NC  27711
(919)541-5294
Abby Oilley
Vice President
The Keystone Center
2033 M St., NW      #900
Washington, DC  20036
(202)842-0160
Jerry Dion                           James Dodds
Prog. Mgr., Policy & Ping. Energy Of Attorney
Arizona Dept. of Commerce            Texas Air Control Board
3800 North Central Ave.              12124 Park 35 Circle
Suite 1200                           Austin, TX  78753
Phoenix, AZ  95012                   (512)908-1119
(602)280-1420
Ira Domsky
Mgr., Air Quality Planning
Arizona Dept. of Envir. Quality
2005 N. Central Ave.
Phoenix, AZ  85004
(602)257-2321
Michael Doonan
U.S. EPA, OPPE
401 M St., SW
Washington, DC  20460
(202)260-6914

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Dean Drake
Environmental Activities
General Motors
30400 Mound Rd.
Warren, MI  48090-9015
(313)947-1804
John Duffe
Transportation & Air Quality Planner
Dept. of Natural Resources
PO Box 7921
Madison, WI  53707
James Ehlmann
Environmental Activities
General Motors
30400 Mound Road
Warren, MI  48090-9015
(313)947-1799
Barry Elman
Air Innovations Program Manager
U.S. EPA, OPPE
401 M Street, SW (PM-221)
Washington, DC  20460
(202)260-2727
Ralph Engel
President
Chemical Specialties Mfrs. Assn.
1913 Eye St., NW
Washington, DC  20006
(202)872-8110
Densford Escarpeta
Environmental Engineer
NY State DEC
Division of Air Resources
50 Wolf Rd.
Albany, NY  12233
(518)457-6379
Stephen Farber
Professor of Economics
LSU Dept. of Economics
Dept. of Economics, CEBA Bldg.
LSU
Baton Rouge, LA  70803
(504)388-3791
Fereidun Feizollahi
Research ..Division
California Air Resources Board
P.O. Box 2815
Sacramento, CA  95812
(916)323-1509
Larry Feldcamp
Partner
Baker & Botts
910 Louisianna
Houston, TX  77002
(713)229-1964
Denise Fenn
Radian Corporation
P.O. Box 13000
3200 Chapel Hill Rd./Nelson Hwy.
Research Triangle Park, NC  27709
(919)541-9100

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Victor Ferrante
Mechanical Engineer
HUD
451 7th St., SW
Rm. 6270
Washington, DC  20410
(202)708-0798
Maura Fitzpatrick
Director - Office of Air Policy
NYC Dept. of Env. Protection
59-17 Junction Blvd. llth Floor
Lorona, NY  11368
(718)595-4462
Sherry Fontaine
Assistant Workshop Coordinator
Radian Corporation
P.O. Box 13000
3200 Chapel Hill Rd./Nelson Hwy.
Research Triangle Park, NC  27709
(919)541-9100
Kelly Fortin
Environmental Engineer
U.S. EPA, Region 9
75 Hawthorne St.
A-5-1
San Francisco, CA  94105-3901
(415)744-1259
Stephen Fotis
Attorney
Van Ness, Feldman & Curtis
1050 Thomas Jefferson St., NW
Suite 700
Washington, DC  20007
(202)298-1800
Douglas Fratz
Scientific Affairs
Chemical Specialties Mfrs. Assn.
1913 Eye St., NW
Washington, DC  20006
(202)872-8110
Carl Garvey
U.S. EPA, OGC
401 M Street, SW,  (LE-132L)
Washington, DC  20460
(202)260-1719
Phil Geis
Group Leader
Proctor & Gamble Co.
11520 Reed Hartman Hwy.
Cincinnati, OH  45241-2422
(513)626-4347
Tracy Gionfriddo
Radian Corporation
P.O. Box 13000
3200 Chapel Hill Rd./Nelson Hwy.
Research Triangle Park, NC  27709
(919)541-9100
John Glenn
Policy & Planning Administrator
Dept. of Environmental Quality
7290 Bluebonnet Drive
P.O. Box 82263
Baton Rouge, LA  70884
(504)765-0720

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Haynes Goddard
Economist
U.S. EPA - ORD
RREL
26 M.L. King Drive
Cincinnati, OH  45268
(513)569-7685
                    Joe Goffman
                    Environmental Defense Fund
                    1616 P St.,  NW
                    Washington,  DC  20036
                    (202)387-3500
Eun-Sook Goidel
Environmental Protection Specialist
U.S. EPA
401 M Street, SW,  (PM-222B)
Washington, DC  20460
(202)260-3296
                    Debbie Gordon
                    Policy Analyst
                    Union of Concerned Scientists
                    Climate Change & Energy Program
                    c/o Lawrence Berkely Lab,  90-3124
                    Berkely, CA  94720
                    (415)486-4321
John Gove
Principal Air Poll. Control Eng.
CT DEP
165 Capitol Ave.
Hartford, CT  06106
(203)566-2690
                    Joyce Graf
                    Science Department
                    Cosmetic Toiletry Fragrance Assn.
                    1101 17th St.,  NW
                    Suite 300
                    Washington,  DC  20036
                    (202)331-1770
Randy Guensler
Research Associate
Univ. of California at Davis
207 First Street
Davis, CA  95616
(916)758-1030
                    Laurie Gwyn
                    Southern.California Gas Co.
                    Environment & Safety
                    PO Box 3249
                    Los Angeles,  CA  90051-1249
                    (213)244-2580
Wayne Hardie
Los Alamos Nat'l
PO Box 1663
MS-B299
Los Alamos, NM  87545
(505)667-2119
Laboratory
Steve Harper
Project Manager
ICF
9300 Lee Hwy
Fairfax, VA  22031
(703)934-3018
                                       (703)268-2118

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Janet Hathaway
Senior Attorney
Natural Resources Defense Council
1350 New York Ave. NW
#300
Washington, DC  20005
(202)783-7800
Seth Heminway
U.S. EPA, OAQPS
(EN-341-W),  SSCD
401 M St., Sw
Washington,  DC  20460
(703)308-8711
Marion Herz
Assoc., Envir. Health
American Lung Association
1726 M St., NW
Washington, DC  20036
(202)785-3355
Mark Hester
Attorney
General Motors
P.O. Box 33122
Detroit, MI  48232
(313)974-1790
John Hewings
Supervisor, Regulation Development
Ontario Ministry of Envir.
Air Resources Branch
880 Bay St., 4th Fl.
Toronto, Ontario  M5S128 CANADA
(416)326-1655
Troy Hillier
Office of Management & Budget
725 17th St., NW, Room 3019
Washington, DC  20503
(202)395-3084
Tom Hillyard
State Tax Notes Magazine
507 13th St., SE
Washington, DC  20003
(202)546-7542
Jacob Hollinger
Environmental Defense Fund
Pollution Prevention Alliance
1616 P Street, NW
Washington, DC  20036
(202)387-3500
Melissa Home
Environmental Mgmt. Analyst
AER*X
1990 M St., NW
Suite 610
Washington, DC  20036
(202)463-6909
Dwight Howes
Government Affairs
CNG
1819 L Street, NW
Suite 900
Washington, DC  20036
(202)833-3900

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Larry Hudson
Mgr.,  Alternative Fuel Vehicles
NY State Energy Res. & Devel.
2 Rockefeller Plaza
Albany, NY  12223
(518)465-6251 X209
Richard Hughes
Engineer
Texas Air Control Board
12124 Park 35 Circle
Austin, TX  78753
(512)908-1554
John Huyler
Senior Associate
The Keystone Center
1320 Pearl St., #300
Boulder, CO  80302
(303)444-4777
John Irwin
Director
KS Dept. of Health & Envir.
Bur. of Air & Waste Mgmt.
Forbes Field, Bldg. 740
Topeka, KS  66620
(913)296-1593
Andrew Jacques
Health & Envir. Affairs
American Petroleum Institute
1220 L St., NW
Washington, DC  20005
(202)962-4705
Brad Johnson
Mgr.,  Corporate Planning
Potomac Elec. Power Co.
1900 Pennsylvania Ave., NW
Washington, DC  20068
(202)872-3561
Tom Jones
Sr. Staff Engineer
Union Carbide
P.O. Box 50
Hahnville, LA  70057
(504)468-4738
Michael Jones
Chief, Ambient Standard Branch
U.S. EPA, OAQPS
MD-12
Research Triangle Park, NC  27711
(919)541-5656
Jim Jones
Associate Editor
Inside EPA Weekly Report
PO Box 7167
Ben Franklin Station
Washington, DC  20044
(703)892-1011
Roger Kanerva
Mgr.,  Environmental Policy
Illinois EPA
PO Box 1926
2200 Churchill Rd.
Springfield, IL  62794-9276
(217)785-5735

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Gerald Keenan
Senior Vice President
Palmer Bellevue Corporation
111 W. Washington St.
Suite 1247
Chicago, IL  60602
(312)807-4848
Carter Keithley
President
Wood Heating Alliance (WHA)
1101 Connecticut Ave., NW
Suite 700
Washington, D.C.  20036
(202)857-1181
Nicholas Kirsch
Telluride Transit Company
P.O. Box 159
218 West Gregory St.
Telluride, CO  81435
(303)728-3512
Wolf Klassen
Dept. of Natural Resources
2300 N. Martin Luther King Dr.
Milwaukee, WI  53212
(414)263-8512
Paul Klauman
Research Assistant
Lockheed Engineering & Sciences Co.
600 Maryland Ave., SW
Suite 600
Washington, DC  20024
(202)488-5854
Barry Korb
Chief, Regulatory Innovations Staff
U.S. EPA, OPPE
401 M Street, SW, (PM-221)
Washington, DC  20460
(202)260-2689
Gerard Krause
Chief, Organic Chem. Section
U.S. EPA, SSCD
401 M St., SW
(EN-341)
Washington, DC  20460
(703)308-8719
Jill Kupferberg-Cappadoro
Director of^Marketing
Pinellas Suncoast Transist Authority
14840 49th St. N
Clearwater, FL  34622-2893
(813)530-9921
Terrence Larson
Mgr, Envir. Affairs
Unocal Corporation
911 Wilshire Blvd.
Suite 1114
Los Angeles, CA  90017
(213)977-7294
Mike Lawrence
Vice President
Jack Faucett Associates
4550 Montgomery Ave.
Suite 300 N
Bethesda, MD  20814
(301)961-8800

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Michael Levin
Sr. Counsel
Nixon, Hargraves, Devans & Doyle
Attorneys at Law
I Thomas Circle, NW, #800
Washington, DC  20005
(202)457-5541
         William Lewis, Jr.
         Attorney
         Morgan, Lewis, & Bockius
         1800 M Street, NW
         Washington,  DC  20036
         (202)467-7145
Pat Leyden
Dep. Exec. Officer, Ping. & Rules
SCAQMD
21865 E. Copley Drive
P.O. Box 4939
Diamond Bar, CA  91765-0938
(714)396-3119
         Alan Loeb
         Energy/Envir.  Policy Analyst
         Argonne National Lab
         9700 S. Cass Ave.
         EID 900
         Argonnne, IL  60439-4832
         (708)752-6473
Bruce Madariaga
Economist
U.S. EPA, BSD, OAQPS
MD-13
Research Triangle Park, NC
(919)541-5290
27711
Rhonda Maddox
Environmental Engineer
U.S. EPA, SSCD
401 M St.,  SW (EN-341)
Washington, DC  20460
(703)308-8721
Arthur Marin
Mobil Source Analyst
NESCAUM
85 Merrimac St.
Boston, MA  02114
(617)367-8540
         Karen Martin
         .Chief, Regulatory Strategies Section
         U.S. EPA,  OAQPS
         MD-12
         Research Triangle Park, NC  27711
         (919)541-5274
Andrea Martin
Daniel R. Thompson, P.C.
1620 I St., NW
Suite 925
Washington, DC  20006
(202)293-5800
         Tuck Masker
         Technical Director
         Hearth Products Assn.
         1101 Connecticut Ave, NW
         Suite 700
         Washington, DC  20036
         (202)857-1181

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Bharat Mathur
Mgr.,  APCD
Illinois EPA
2200 Churchill Rd.
Springfield, IL  62794-9276
(217)785-4140
Nancy Mayer
Environmental Engineer
U.S. EPA, OAQPS
MD-15
RTP, NC  27711
(919)541-5390
Kevin McCarthy
Associate Analyst
Office of Legislative Research
Legislative Office Bldg., Room 5300
Capitol Avenue
Hartford, CT  06106
(203)240-8400
Janet McDonald
Radian Corporation
P.O. Box 13000
3200 Chapel Hill Rd./Nelson Hwy.
Research Triangle Park, NC  27709
(919)541-9100
Michael McGill
Executive Director
Bay Area Economic Forum
200 Pine St., Suite 300
San Francisco, CA  94104
(415)981-7117
Andy McGinn
Mgr., State & Local Relations
American Gas Association
1515 Wilson Blvd.
Arlington, VA  22209
(703)841-8597
Bill McLean
Economist
Ministry of Treasury & Economics
7 Queens Park Crescent
Frost Bldg., 5th Floor
Toronto, Ontario  M7A1Y7 CANADA
(417)327-0248
Gary McNeil
Consultant
Clegg & Associates
811 1st Avenue, Suite 200
Seattle, WA  98104
(206)623-7134
Melanie Medina
Environmental Production Specialist
U.S. EPA, OPPE, OPA
PM-221
401 M Street, SW
Washington, DC  20460
(202)260-9822
Joe Mendelson
Greenhouse Crisis Foundation
1130 17th St., NW, Suite 630
Washington, DC  20036
(202)466-2823

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Robin Miles-McLean
Office of Policy, Planning,
U.S. EPA, OPPE
Waterside Mall
401 M St., SW,  (PM-221)
Washington, DC  20460
(202)260-1126
         Roger Morris
& Evalua Office of Envir.  Analysis
         DOE
         1000 Independence Ave.,  SW
         Washington,  DC  20585
         (202)586-6707
Patricia Morris
Environmental Scientist
U.S. EPA, Region V
77 W. Jackson
Chicago, IL  60604
(312)353-8656
         Brian Morton
         Research Triangle Institute
         PO Box 12194
         Research Triangle Park, NC  27709
         (919)541-7094
Peter Nagelhout
Regulatory Innovations Staff
U.S. EPA, OPPE
401 M St., SW
Washington, DC  20460
(202)260-7015
         Matt Naud
         Associate
         ICF
         9300 Lee Hwy
         Fairfax, VA  22031
         (703)934-3933
Mary Nichols
Senior Staff Attorney
NRDC
617 S. Olive St., #1210
Los Angeles, CA  90020
(213)892-1500
         Donna Nickerson
         U.S. EPA,  SSCD
         401 M Street,  SW  (EN-341)
         Washington, DC  20460
         (703)308-8694
Elizabeth Nixon
Environmental Mgmt. Analyst
AER*X
1990 M St., NW
Suite 610
Washington, DC  20036
(202)463-6909
         Alan Nogee
         Energy Program Director
         MASS PIRG
         29 Temple PI.
         Boston, MA  02111-1305
         (617)292-4800

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Robert Nordhous
Partner
Van Ness, Feldman, & Curtis
1050 Thomas Jefferson St., NW
Washington, DC  20007
(202)298-1800
Carolyn Norris
Radian Corporation
P.O. Box 13000
3200 Chapel Hill Rd./Nelson Hwy.
Research Triangle Park, NC  27709
(919)541-9100
John O'Connor
Radian Corporation
P.O. Box 13000
3200 Chapel Hill Rd./Nelson Hwy.
Research Triangle Park, NC  27709
(919)541-9100
Conniesue Oldham
IRS Workshop Chairperson
U.S. EPA, OAQPS
MD-12
Research Triangle Park, NC
(919)541-7774
27711
Amanda Ormond
Energy & Environmental Planner
Dept. of Commerce, Energy Office
3800 North Central Ave.
Suite 1200
Phoenix, AZ  85012
(602)280-1420
Ryuzo Oshita
Gov. Relations Tech. Group
Toyota Motor Corp. Services
1850 M St.,  NW
Suite 600
Washington,  DC  20036
(202)463-6832
Andrew Otis
U.S. EPA, OPPE
401 M Street, SW,  (PM-221)
Washington, DC  20460
(202)260-2887
John Palmisano
President
AER*X, Inc.
1990 M St., NW
Suite 610
Washington, DC
(202)463-6909
                                                     20036
Angela Park
Sustainable Development Program
Center for Policy Alternatives
1875 Connecticut Ave., NW, #710
Washington, DC  20008
(202)387-6030
Kristi Parker
Associate Facilitator
The Keystone Center
P.O. Box 8606
Keystone, CO  80435
(303)468-5822

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
William Pedersen
Perkins Coie
607 14th St., NW
Washington, DC  20005-2011
(202)434-9612
                      Richard Penna
                      Partner
                      Schnader,  Harrison,  Segal & Lewis
                      111  Nineteenth St.,  NW
                      Suite  1000
                      Washington,  DC  20036
                      (202)463-2966
Alan Powell
Environmental Engineer
U.S. EPA, Region 4
Air Division
345 Courtland Street, NE
Atlanta, GA  30365
(404)347-5014
                      Roger Raufer
                      Associate Director
                      Center for Energy/Environment
                      University of  Pennsylvania
                      3400  Walnut Street
                      Philadelphia,  PA  19104
                      (215)898-2775
Douglas Raymond
Div. Director, Regulatory Affairs
Sprayon Products
26300 Fargo Ave.
Bedford Heights, OH  44146
(216)292-7400
                      Larry Rennacker
                      Planning Division
                      Santa Barbara  Co.  APCD
                      26  Castillian  Dr.
                      B-23
                      Goleta,  CA  93117
                      (805)961-8800
Bill Repsher
U.S. EPA, OE
Waterside Mall
401 M St., SW,
Washington, DC
(202)260-2845
(LE-134-A)
 20460
Harvey Richmond
Envir. Protection Specialist
U.S. EPA, OAQPS
MD-12
Research Triangle Park, NC  27711
(919)541-5271
Michael Riehle
Mgr., Policy Analysis
Unocal Corporation
1201 W. 5th St.
Los Angeles, CA  90017
(213)977-7311
                      Bill  Roach
                      Supervisor,  Market Development
                      Seattle Metro
                      MS  128
                      821 Second Ave.
                      Seattle,  WA   98104
                      (206)684-1620

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Nikki Roy
Pollution Prevention Specialist
Environmental Defense Fund
1616 P St., NW
Washington, DC036  20036
(202)387-3500
               John Rudd
               U.S. EPA, OE
               Waterside Mall
               401 M St., SW,
               Washington, DC
               (202)260-2864
               (LE-134A)
                20460
Karen Sabasteanski
Policy Analyst
Air Pollution Control
P.O. Box 10089
Richmond, VA  23240
(804)786-2378
Dept.
Rafael Sanchez
Chemical Engineer
U.S. EPA, OAR/SSCD
401 M Street, SW, (LE-134A)
EN 341 W
Washington, DC  20460
(703)308-8730
Kathryn Sargeant
U.S. EPA, QMS
2565 Plymouth Rd.
Ann Arbor, MI  48105
(313)668-4441
               Nancy Saylor
               Policy Analyst
               Air Pollution Control Dept.
               P.O. Box 10089    (
               Richmond, VA  23240
               (804)786-1249
Claire Schary
U.S. EPA, Acid Rain Div.
401 M St., SW
Washington, DC  20460
(202)260-1746
               Will Schroeer
               U.S. EPA, DPPE
               Waterside Mall
               401 M St., SW (PM-221)
               Washington, DC  20460
Arthur Sheffield                     Deborah Sheiman
Chief, Regulatory & Economic Affairs Resource Specialist
Environment Canada                   NRDC
Place Vincent Massey                 1350 New York Ave., NW
15th Floor                           Washington, DC  20005
Hull, Quebec  KIA OH3 Canada         (202)783-7800
(819)953-1172

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Stephen Sinkez
Assistant Vice President
Mitsubishi Motors America, Inc.
1111 19th St., NW
Suite 408
Washington, DC  20036
(202)223-3845
Sarah Siwek
Director
L.A. Co. Transportation Comm.
818 West 7th St.
Suite 1100
Los Angeles, CA  90017
(213)244-6278
Steve Sky-Peck
Environmental Quality Coordinator
Louisiana Dept. of Env. Quality
Ofc. of Legal Affairs & Enforcement
PO Box 82282
Baton Rouge, LA  70884-2282
(504)765-0399
Marian Slavin
Travel Reduction Program Mgr.
Pima Association of Governments
177 N. Church Ave., #405
Tuscon, AZ  85701
(602)792-2952
Jason Smitherman
Administrator
Alternative Fuels Program
Oklahoma Ofc. of Pub. Affairs
3301 N. Santa Fe
Oklahoma City, OK  73118
(405)521-4687
Susan Sonnenberg
Mobil Oil Corporation
3225 Gallows Road
Fairfax, VA  22037
(703)846-4752
Lynn Sonntag
Senior Counsel
The Walt Disney Company
500 S. Buena Vista Street
Burbank, CA  91521-0321
(818)560-7094
George Spencer
Editor
Clean Air Week
4418 MacArthur Blvd.
Washington, DC  20007
(202)298-8202
Cynthia Stahl
U.S. EPA, Region 3
841 Chestnut Bldg
Philadelphia, PA  19107
(215)597-9337
Carol Stanzak
Air Pollution Specialist
California Air Resources Board
Transportation Strategies Group
1102 Q Street
Sacramento, CA  95812
(916)445-0098

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Sue Stendebach
Envir. Protection Specialist
U.S. EPA, ARD
401 M Street, SW, (ANR-445)
Washington, DC  20460
(202)260-1312
Patton Stephens
Staff Evaluator
U.S. General Accounting Ofc.
Rm. 308
100 Indiana Ave., NW
Washington, DC   20001.
(202)376-9714
Barbara Stinson
The Keystone Center
P.O. Box 8606
Keystone, CO  80435
(303)468-5822
Robin Sullivan
Environmental Engineer
U.S. EPA, Region 6
1445 Ross Ave.
6T-AP
Dallas, TX  75287
(214)255-7214
Roger Sung
Program Manager
Southern California Edison
2244 Walnut Grove Ave.
Rosemead, CA  91770
(818)302-9551
Martha Tableman
Associate
The Keystone Center
P.O. Box 8606
Keystone, CO  80435
 (303)468-5822
Christine Terry
Director
Evansville EPA
Room 207, Civic Center Complex
1 NW Martin Luther King Blvd.
Evansville, IN  47708
(812)426-5597
Ivan Tether
.Senior .Counsel
Pacific Enterprises
633 W. Fifth St.,  #5400
Los Angeles, CA  90071
(213)895-5150
Rich Theroux
Office of Management & Budget
725 17th St., NW, Room 3019
Washington, DC  20503
(202)395-3084
Michael Thompson
Assoc. Director, Legis. Affairs
Chemical Specialties Mfrs. Assn.
1913 Eye St., NW
Washington,  DC  20006
(202)872-8110

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Gus Tirado
Gov't. Affairs Tech. Group
Toyota Motor Corp. Services
1850 M St., NW
Suite 600
Washington, DC  20036
(202)463-6832
Tom Tyler
U.S. EPA, OPPE
401 M St.,  SW
(PM-221)
Washington, DC  20460
(202)260-2692
John Ungvarsky
Envir. Protection Specialist
U.S. EPA, Region 9
Air Programs Branch
75 Hawthorne St. (A-5-3)
San Francisco, CA  94105
(415)744-1188
Eric Van De Verg
Project Director
Jack Faucett Associates
4550 Montgomery Ave.
Suite 300 N
Bethesda, MD  20814
(301)961-8800
Lucille Van Ommering
CARB Executive Office
PO Box 2815
Sacramento, CA  95812
(916)323-0296
Ray Vogel
U.S. EPA, OAQPS
MD-15
Research Triangle Park, NC  27711
(919)541-3153
Gustave Von Bodungen
Administrator
LA Dept. of Envir. Quality
Air Qual. & Nuclear Energy
P.O. Box 82135
Baton Rouge, LA  70810
(504)765-0110
Jerry Wade
Research.Economist
Maryland Dept. of Economics
and Employment Development
217 E. Redwood St., llth Floor
Baltimore, MD  21202
(301)333-6950
William Wason
Consultant
Environmental Solutions
123 Cleo Rand St.
San Francisco, CA  94124
(415)822-2991
William West
Environmental Affairs
Southern California Edison
2244 Walnut Grove Ave.
Rosemead, CA  91770
(818)302-9534

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Mike Whinihan
Senior Economist
General Motors
Rm. 15-255
Detroit, MI  48202
(313)556-3878
Jill Whynot
South Coast AQMD
21865 E. Copley Dr.
PO Box 4939
Diamond Bar, CA  91765-0938
(714)396-3104
Martin Wikstrom
Environmental Affairs Executive
NEMA
2101 L St., NW
Washington, DC  20037
(202)457-8487
Rich Wilcox
Project Manager
U.S.EPA, OAR
Technical Support Staff
2565 Plymouth Rd.
Ann Arbor, MI  48105
(313)668-4390
Darrell Williams
Project Manager
The Advocacy Institute
1730 Rhode Island Ave., NW
Suite 600
Washington, DC  20036
(202)659-8475
Terri Wilsie
U.S. EPA, OPAR
Waterside Mall
401 M St.,  SW,
Washington, DC
(202)260-1360
(ANR-443)
 20460
Steven Winberg
Director, Cofiring
CNG
625 Liberty Ave.
CNG Tower
Pittsburgh, PA  12522-3199
(412)227-1431
Anne Wittenberg
Senior Associate
ICF Inc.
1850 K St. NW
#1000
Washington, DC  20006
(202)862-1202
Verne Wochnick                       Chris Wolz
Mgr., Government Affairs             Office of Management & Budget
Hughes Aircraft Company              725 17th St., NW, Room 3019
Corporate Hdqtrs. P.O. Box 45066     Washington, DC  20503
7200 Huges Terrace, Bldg C-l, M/S Cl (202)395-3084
Los Angeles, CA  90045-0066
(213)568-6318

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                             PARTICIPANT LIST
                      Innovative Strategies Workshop
                  Georgetown University Conference Center
                            January 15-17, 1992

                         Participant List by Name
Ben Yamagata
Partner
Van Ness, Feldman & Curtis
1050 Thomas Jefferson Street, NW
Washington, DC  20007
(202)298-1800
Ellen Young
Attorney
Van Ness, Feldman & Curtis
1050 Thomas Jefferson Street, NW
Washington, DC  20007
(202)298-1800
Marcia Zalbowitz
Consultant
Solar Electric Engineering
1915 Kalorama Rd., NW
Suite 102
Washington, DC  20009
(202)387-6185
Hans van Zijst
Counselor for Environment
Netherlands Embassy
4200 Linnean Ave., NW
Washington, DC  20008
(202)244-5300

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