PROPOSAL:

Recognize and Appropriate Funds From U.S. EPA to AQMD to be Used to Develop Enforcement Strategies for Market-Based Programs

SYNOPSIS:

EPA has awarded the AQMD with a grant to develop enforcement strategies for market-based programs. The grant provides funding in the amount of $70,100, which will be used to organize, support, and host a national task force composed of members from various state and local air quality regulatory agencies. The enforcement strategies will be developed collectively by the task force members. This action is to appropriate $70,100 to the FY 1997-98 budget.

COMMITTEE:

Administrative, October 24, 1997, Recommended for Approval

RECOMMENDED ACTION:

Recognize $70,100 in revenue from the EPA and appropriate $70,100 from the Undesignated Fund Balance to the Stationary Source Compliance Services & Supplies Major Object in the following accounts: $42,000 to Travel; $8,000 to Other Expenses; $3,000 to Communications; $3,000 to Office Expense; $2,000 to Postage; and $12,100 to Professional/Special Services.

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

Background

EPA is providing AQMD with a grant to develop enforcement strategies for market-based programs to incentivize emission reductions. AQMD is hosting a series of task force meetings and conference calls with other California air districts, various state air quality regulatory agencies, and EPA to facilitate this development effort. The grant funds will be used to defray the expenses of travel, lodging, and meals for task force members, long distance telecommunications, materials, postage, and a project facilitator.

AQMD Responsibility

Stationary Source Compliance will organize and host the task force meetings. AQMD staff from other offices will also participate in the task force meetings and provide input and assistance. Stationary Source Compliance will prepare an enforcement guidance document for market incentive programs, which will be based on the information generated by the task force.

Benefits

Traditional enforcement techniques are not always applicable to market incentive programs. Therefore, every jurisdiction which implements a market incentive program needs to have an appropriate compliance program to ensure that the incentive program goals are achieved and that all emission credits reflect real, permanent, enforceable, quantifiable, surplus emission reductions.

The Enforcement Strategies for Market-Based Programs Task Force represents a mechanism for the various agencies implementing market incentive programs to pool their experience and resources in identifying enforcement strategies which are well-suited to various types of incentive programs. This consolidated approach will be much more streamlined and efficient than for each agency to address these issues independently. It will also help to ensure that the resulting guidance document reflects the needs and experiences of agencies throughout the nation.

Resource Impacts

This supplement to the FY 1997-98 budget will have little effect on AQMD’s fiscal resources because the funds it represents are provided by EPA. Specifically, this supplement will recognize $70,100 in revenue from EPA and appropriate $70,100 from the Undesignated Fund Balance to the Stationary Source Compliance Services & Supplies Major Object in the following accounts: $42,000 to Travel; $8,000 to Other Expenses; $3,000 to Communications; $3,000 to Office Expenses; $2,000 to Postage; $12,100 to Professional/Special Services.

This constitutes a supplement to the FY 1997-98 budget. Therefore, the required 30-day public notice of a proposed supplement to the FY 1997-98 budget was published in the Los Angeles Daily Journal, the San Bernardino Sun Telegram, the Riverside Press Enterprise, the Santa Ana Register, and the Inland Valley Daily Bulletin.

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