BOARD MEETING DATE: June 14, 1996

AGENDA NO. 4

Continued from May 10, 1996

Proposal:

Execute Contracts for Air Quality Investment Program

Synopsis:

On March 8, 1996, the Board approved in concept the staff recommendations to execute contracts for the AQIP. At that time staff was directed to return to the Board for final approval. Staff recommends that the Board approve the release of AQIP funds for the final quarter funding of 1995.

Committee:

Mobile Source, April 26, 1996, Recommended for Approval

Recommended Action

1. Authorize the Chairman to execute a contract in an amount not to exceed $49,308, from the Air Quality Investment Program Special Revenue Fund, with Lapis Energy (Chino and Desert Sand Unified School Districts) for purchase of three years of equivalent emission reductions and to exercise the 120-day agreement of the previously approved contract with Eco-Scrap in an amount not to exceed $352,495.

2. Direct the Executive Officer to deem in compliance all employers participating in the AQIP between July 1, 1995 and December 7, 1995 for an additional two years.

James M. Lents, Ph.D.
Executive Officer

Background
On March 8, 1996, the Board approved in concept staff’s AQIP funding recommendations for the final quarter of 1995 which were to fund the Lapis Energy (Chino and Desert Sand Unified School Districts) proposal to convert diesel-powered school buses to CNG-powered buses and to exercise the 120-day option with Eco-Scrap to purchase the remaining second and third year emission reduction credits. The Board did not authorize executing these two recommendations due to pending legislation that would prohibit AQMD from continuing with the AQIP and require AQMD to return a portion of the funds collected under the AQIP. Staff was directed to return to the Board, prior to the expiration of the 120-day option, no later than May 18, 1996, for final approval. However, because there was no resolution to the pending legislation prior to the May Board meeting, Eco-Scrap agreed to extend the 120-day option.

Proposal Evaluation
Staff recommends that the Board approve the release of funding for the Lapis Energy (Chino and Desert Sand Unified School Districts) proposal for $49,308 and exercise the 120-day option with Eco-Scrap for $352,495. For the final quarter of 1995, the total funding amount that staff recommends the Board approve is $401,803. Any remaining AQIP funds would be held for future proposal funding in subsequent quarters. All employers participating in the AQIP between July 1, 1995 and December 7, 1995 would be deemed in compliance for an additional two years.

The resulting emission reductions will meet the total required equivalent emission reductions for all Rule 1501.1 - Alternatives to Work Trip Reduction Plans affected worksites participating in the third and fourth quarters of 1995 for a full three-year period at a similar cost to Rule 2202. In other words, employers who have paid $110 per employee from July 1, 1995 through December 7, 1995 under Rule 1501.1 would receive credit for three years of compliance instead of one. This action would help level the playing field because once Rule 2202 was adopted on December 8, 1995 employers paid $125 for each peak window employee for a triennial compliance option. Any carryover monies from the previous quarters will be combined with the next quarter’s funding for the next round of proposals to be considered.

Execution of these funding recommendations will complete the AQIP funding pursuant to rescinded Rule 1501.1 and will allow the Board to proceed with AQIP funding under Rule 2202.

Resource Impact
Not Applicable.