BOARD MEETING DATE: March 8, 1996

AGENDA NO. 20

Proposal:

Adopt Technology Advancement Plan and include it in the Clean Fuels Program

Synopsis:

The proposed Technology Advancement Plan for the Clean Fuels Program outlines planned project expenditures for the balance of Fiscal Year 1995-96 in accord with SB 199 (Kelley). This legislation includes a requirement that research, development, and demonstration projects for vehicle applications within the AQMD's Clean Fuels Program do not duplicate the efforts of 69 different organizations. Based on communications with these organizations, staff has determined that the projects proposed in the Plan are not duplicative. The Plan will be updated periodically to reflect new developments.

Committee:

Technology, February 13, 1996, recommended for approval.

Recommended Action:

Adopt the attached Technology Advancement Plan and include it in the Clean Fuels Program. Find that the Technology Advancement Plan and its proposed projects do not duplicate any past or present programs of specified organizations.

James M. Lents, Ph.D.
Executive Officer

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Attachment


Background

Achieving federal and state clean air standards in Southern California will require emission reductions from both mobile and stationary sources beyond those available from current technologies. The AQMP relies on the expedited, future implementation of advanced technologies and clean-burning fuels in Southern California to achieve these standards. To meet the needs of the AQMP for progressively lower-emitting fuels and technologies, the AQMD adopted a Clean Fuels Program in 1988, and also established the Technology Advancement Office to administer the program. Concurrently, the State Legislature authorized funds for the AQMD's Clean Fuels Program via SB 2297, and subsequently renewed this funding authorization via SB 316.

The primary goal of the Clean Fuels Program is to assist private industry in the rapid development and deployment of progressively lower-emitting technologies and fuels. Since the program's inception in 1988, AQMD has cosponsored more than 250 projects involving low- and zero-emission technologies. Funding partners in the program have included private industry, technology developers, academic institutions, research institutes, and government agencies such as ARB and EPA. This public-private partnership has enabled the AQMD to leverage its public funds with outside investment in a ratio of more than $4 of outside funding to every $1 of AQMD funding. Staff has used the AQMP and the annual budget planning process as guides for the expenditure of Clean Fuels Program revenues. This facilitates a dynamic project-selection process that can readily adjust to rapid advancements in clean technologies and fuels.

State legislation, under Health and Safety Code (H&SC) 40448.5 and Vehicle Code 9250.11, enables the AQMD to fund this program through the imposition of a $1 annual fee on motor vehicles registered in the counties of Los Angeles, Orange, Riverside, and San Bernardino. In 1993, SB 316 (Rosenthal) amended the legislation to extend the Clean Fuels Program from an effective end date of August 1, 1994 to August 1, 1999. This bill also added constraints on the AQMD in the administration and use of Clean Fuels Program revenues, primarily to restrict the use of motor vehicle revenues to mobile source applications.

The most recent amendments to the Clean Fuels Program resulted from the passage of SB 199 (Kelley) in October 1995. This bill imposes additional administrative requirements upon the AQMD under H&SC 40448.5.1. First, prior to any Clean Fuels Program expenditure after January 1, 1996, a plan must be adopted that describes the expected cost and benefits of proposed projects. Second, the AQMD must coordinate its program with 69 different organizations to find that expenditures are not duplicative. SB 199 does not preclude jointly funded projects. Finally, a public report must be issued within 120 days after a funded project is completed that includes results achieved, actual and expected costs, and actual and expected benefits.

Proposal

The attached Technology Advancement Plan (the Plan) represents the initial submittal of a formal plan as required by SB 199 (H&SC 40448.5.1.(a)(1)). The Plan includes an overview of the AQMD's technology advancement program, project planning and selection processes, and proposed project areas being considered for co-funding for the balance of Fiscal Year 1995-96. The proposed projects are summarized, including objectives, expected costs, and expected benefits, as required by SB 199. This plan will be updated periodically to be as responsive as possible to technological advances.

Not all projects identified in the Plan are expected to be recommended for funding. Each month, projects in the Plan that are deemed to be ready will be presented individually to the Governing Board for review and approval. At that time, additional details will be provided about the technology to be demonstrated, the intended application, the proposed scope of work, the capabilities of the selected contractor and project team, and how the project will be cost shared among various entities.

Based on communications with all of the organizations specified in SB 199 and review of their programs, the projects proposed in the Plan do not appear to duplicate any past or present projects. As each individual project is recommended to the Board for funding, staff will continue to communicate with these organizations to ensure that duplication is avoided.

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