CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY
                      AIR RESOURCES BOARD
                                
                       Hotel Indian Wells
                     Ballroom, Lobby Level
                       76-661 Highway 111
                        Indian Wells, CA
                                
                       February 19, 1993
                           8:30 a.m.
                                
                             AGENDA

                                                             Page

93-3-1    Public Meeting to Consider Guidelines on the        001
          Generation and Use of Mobile Source Emission
          Reduction Credits.

                         ITEM NO.: 93-3-1

Public Hearing to Consider Guidelines on the Generation and Use
of Mobile Source Emission Reduction Credits.

                          RECOMMENDATION

The staff recommends that the Board approve guidelines for air
pollution control and air quality management districts
(districts) for development and implementation of mobile source
emission reduction credits.  Further, the staff recommends that
the guidelines be forwarded to the districts for use in
developing rules and regulations governing mobile source emission
reduction credit programs.

                            DISCUSSION

We have identified a need, along with the districts and industry,
to provide additional flexibility in meeting California's air
quality goals.  One mechanism for providing this flexibility is
through the generation of mobile source emission reduction
credits.  In response to this interest, the ARB staff released a
concept paper entitled: "Mobile Source Emission Reduction
Credits: A Concept Paper on the Generation of Emission Reduction
Credits from Mobile Sources."  This concept paper was presented
to the Board in August 1992 as an informational item.

At the direction of the Board, the staff has transformed the
concept paper into guidelines for districts planning to develop
mobile source emission reduction credit programs.  In preparing
the guidelines, the staff addressed comments and questions
regarding the concept paper that were raised through letters and
two public consultation meetings.

These guidelines address the development of a program, the use of
the credits, and procedures for generating credits through three
programs: accelerated retirement of older vehicles, purchase of
low-emission buses, and purchase of zero-emission vehicles.

                       SUMMARY AND IMPACTS

The ARB has the primary responsibility for control of emissions
from motor vehicles.  These guidelines were developed in order to
ensure compatibility between district mobile source emission
reduction credit programs and the ARB's comprehensive motor
vehicle emissions control program.