PROPOSAL:

Appropriate Funds to Cost-Share Evaluation of In-Use Vehicles Retrofitted with Advanced Aftermarket Catalytic Converters

SYNOPSIS:

At its April 11, 1997 meeting, the Board authorized an agreement with New Emission Reduction Associates (New ERA), to be cofunded by the AQMD and ARB, to evaluate the effectiveness of replacing factory-equipped catalytic converters with advanced aftermarket units. Execution of a contract with ARB for their funding portion was not completed during Fiscal Year 1996-97, making it impossible to complete appropriation of funds for the contract with New ERA. In order to execute a contract with New ERA, as already authorized by the Board, funding for this project must be reappropriated using Fiscal Year 1997-98 funding.

COMMITTEE:

Technology, November 7, 1997 and Administrative, November 21, 1997, Recommended for Approval

RECOMMENDED ACTION:

1. Recognize $70,000 in revenue from the ARB.

2. Appropriate $140,000, consisting of $70,000 previously transferred from the Advanced Technology Fund and $70,000 from the ARB, from the Undesignated Fund Balance to the Services and Supplies Major Object, Professional and Special Services Account of the Technology Advancement office.

3. Authorize the Chairman to execute an agreement for $70,000 with the ARB to co-sponsor an evaluation of the effectiveness of replacing factory-equipped catalytic converters with advanced aftermarket units, to be passed through from AQMD to New ERA.

4. Authorize the Chairman to execute an agreement with New ERA in an amount not to exceed $140,000 to sponsor an evaluation of the effectiveness of replacing factory-equipped catalytic converters with advanced aftermarket units.

Barry R. Wallerstein, D. Env.
Acting Executive Officer

Background

At its April 11, 1997 meeting, the Governing Board authorized a $140,000 agreement with New Emission Reduction Associates (New ERA), to consist of $70,000 from the AQMD and $70,000 from the ARB, to evaluate the effectiveness of replacing factory-equipped vehicle catalytic converters with advanced aftermarket units.

Following the Board’s approval of the project, $70,000 was transferred from the Advanced Technology Fund to the General Fund in anticipation of receipt of the ARB’s $70,000 cofunding and the subsequent execution of the $140,000 contract with New ERA. Unfortunately, execution of a contract with ARB for their funding portion was not completed during Fiscal Year 1996-97, making it impossible to complete appropriation of funds for the contract with New ERA.

The April 11, 1997 Board letter is attached for reference.

Proposal

With increasing vehicle mileages, emissions tend to increase due to deterioration or failure of emissions related components such as catalytic converters. As a result, older vehicles, including those originally equipped with catalytic converters, are major contributors to the overall vehicle emissions inventory.

The proposed project focuses on conducting emissions testing of in-use vehicles, first with original catalytic converters and next with upgraded catalytic converters, to quantify emissions benefits. As proposed, the upgraded catalytic converters would exceed durability and control efficiency standards established by the ARB for aftermarket units. Emissions data will be used to evaluate factors such as cost effectiveness and potential applicability to AQMD rules.

Since this project was approved by the Governing Board in April 1997, New ERA has proposed the following changes to their proposal: (1) Emissions testing will be conducted on up to 10 vehicles, rather than up to 20 vehicles. New ERA’s original proposal assumed a much larger project budget to account for the possibility of additional funding partners. At this time, because it is uncertain whether additional cofunding will be secured by New ERA, the number of test vehicles has been reduced. (2) Perfection Automotive Products, the company originally identified by New ERA as one of the project’s suppliers, has been acquired by Tenneco. Tenneco will assume Perfection’s role in the project.

The proposed project could lead to significant emission reductions. The expected benefits of this project include: (1) direct reductions in HC, NO_x, and CO emissions from the in-use vehicles selected for testing; (2) if warranted by emissions testing results, AQMD and ARB consideration of regulations or incentives programs regarding installation of upgraded catalytic converters; (3) an innovative approach to reducing emissions from older in-use vehicles; (4) an alternative to programs such as vehicle scrapping for owners of high-emitting vehicles.

In order to execute a contract with New ERA, as previously authorized by the Governing Board, funding for this project must be reappropriated using Fiscal Year 1997-98 funding. This includes public notification of the AQMD’s intent to receive a $70,000 Fiscal Year 1997-98 budget supplement from the ARB.

Resource Impacts

Sufficient funding in the amount of $70,000 was transferred to the General Fund from the Advanced Technology Fund for this project. Total cost of the proposed project is $140,000, with the following cofunders:

Attachments

April 11, 1997 Board Letter

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