Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44California League of Food Processors 15 information gathered from ACPS facilities will be used for further development of the regulation. CARB has combined the TRU and LSI survey efforts to maximize agency efficiency and minimize disruption to agricultural businesses. The new amendments coincide with the board’s vision of a zero and near-zero emission freight system as approved in Resolution 15-22, which directed staff to pursue development of the potential near-term actions described in the Sustainable Freight: Pathways to Zero and Near-Zero Emissions. ENERGY ISSUES ALISO CANYON: SUMMER CURTAILMENT POTENTIAL (SoCalGas Customers Only) Citing difficulties maintaining sufficient supply of natural gas, Southern California Gas Company (SoCalGas) filed a motion last March with the California Public Utilities Commission requesting an interim order“temporarily”establishing a +/-5 percent daily balancing requirement for all noncore industrial natural gas to begin August 1. Food processors and other noncore natural gas users faced penalties for noncompliance of 150% of the highest reported price of the border points comprising the Daily SoCal Border Index. SoCalGas contended this new restriction and penalty structure was necessary to“enhance reliability and protect against curtailments this summer and next winter”that could arise from the severe limitations on Aliso Canyon natural gas storage operations. CLFP testified in opposition to CARB staff’s proposal to eliminate transition assistance in the fourth compliance period as unwarranted. Citing the lack of new technology to aid food processors in meeting ever-increasing compliance obligations, CLFP recommended that proposed reductions in transition assistance be tied to new technology develop- ment on a sector basis. The proposed regulation did not include a plan to change the industry assistance for the third compliance, however CARB has made clear its intention to revise the methodology for industry assistance factors for the fourth compliance period. It is a certainty that these changes will result in significant reduction of emissions allowances available to obligated facilities and will likely result in an increase in cost for California industry. However, CLFP noted that the recent study on leakage in the food processing sector did conclude that the industry should be designated a high leakage risk. Given there has yet been no comment on the study from CARB, CLFP stated its expecta- tion that CARB will heed the conclusions of the study and make the necessary changes, providing 100% allowance allocation to food processors in the third compliance period. CLFP also supported comments from the business community calling for the establishment of an industry advisory council that would provide formal and early feedback to CARB staff on proposed regulations and compliance mechanisms. The formal close of the initial 45-day comment period occurred on September 19 and CARB staff will now make changes to the draft regulation based on public comment and board feedback. CARB will then issue another draft regulation giving industry 15 days to comment before the regulation goes to the board for a vote in March 2017. AMENDMENTS PROPOSED FOR LSI ENGINE FLEET REQUIREMENTS REGULATION CARB adopted amendments to the Large Spark-Ignition (LSI) Engine Fleet Requirements Regulation to establish reporting and labeling requirements on July 21, 2016. These amend- ments exclude equipment used 100% for in-field and all Agricultural Crop Preparation Services activities. The staff proposal will require fleets subject to the current requirements of the LSI Fleet Regulation to report their LSI equipment to CARB beginning June 30, 2017, and annually thereafter. Additionally, CARB staff is developing an air pollution control measure for transport refrigeration units (TRUs). A public workshop was held April 2016. CARB staff is interested in learning more about TRUs operating at ACPS facilities. The CLFP also supported comments from the business community calling for the establishment of an industry advisory council that would provide formal and early feedback to CARB staff on proposed regulations and compliance mechanisms. Aliso Canyon