October 13, 1995

South Coast Air Quality
Management District Board

Recommendation to Release a Request for Proposals to
Privatize Portions of the Annual Emissions Report Program


District Rule 301 requires a facility with permitted equipment that exceeds four tons of criteria emissions to pay annual emission fees for various air contaminants. Each year by July 1, approximately 6,000 facilities receive emission reporting packages. Within 60 days, these facilities are required to report their emissions and pay associated fees for the preceding fiscal year. The emissions data received is the foundation of the AQMD's emissions inventory, which is in turn relied upon to support various planning and rulemaking activities. The annual emission fees received, approximately $25 million a year, account for approximately 25 percent of AQMD revenues. Therefore, it is important that the annual emissions report program continues to be implemented in a timely, efficient, and accurate manner and that adequate data integrity is maintained.

Over the past three years, significant improvements have been implemented to automate the annual emissions report program. However, the program still requires a variety of resources to prepare and distribute emission report packages to facilities; to collect, compile, and review emissions and fee data; and to perform engineering evaluation of emissions data. AQMD staff believes that some of these steps may be performable by a private contractor at greater efficiency and lower cost. Staff has developed the privatization work statement of the attached RFP with the input of several industry representatives that must file annual emission forms. The objective of this project is to identify contractor(s) that can compile and review annual emission data, with greater cost effectiveness than the AQMD's existing program. Actual collection of fees and billing adjustments will still be handled by staff.

Staff recommends that a request for proposals (RFP) be released to seek qualified contractor(s) at a cost not to exceed $250,000. Sufficient funding is available in Planning and Policy's Fiscal Year 1995-96 Budget under the Professional and Special Services Account. This recommendation was reviewed and approved by the Administrative Committee on September 22, 1995.

THEREFORE IT IS RECOMMENDED THAT YOUR BOARD

--Approve the attached Request for Proposals to privatize portions of the Annual Emissions Report Program, in an amount not to exceed $250,000.

Respectfully,

James M. Lents, Ph.D.

Executive Officer

BRW:JPB:EC

Attachments

(ec:rfp-blr.doc)