PROPOSAL:

Adopt Update of Technology Advancement Plan for Clean Fuels Program

SYNOPSIS:

The proposed update to the Technology Advancement Plan for the AQMD’s Clean Fuels Program outlines planned project expenditures for FY 1997-98 in accordance with Health and Safety Code Section 40448.5.1. This legislation requires that research, development, and demonstration projects for vehicle applications within the AQMD’s Clean Fuels Program do not duplicate the efforts of specified organizations. Based on communications with these organizations, staff has determined that the proposed projects are not duplicative. The Plan will be updated periodically to reflect new developments.

COMMITTEE:

Technology, August 15, 1997, Recommended for Approval

RECOMMENDED ACTION:

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

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

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 cleaner-burning fuels and advanced technologies 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 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 in 1993.

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 clean fuels. Since the program’s inception in 1988, the AQMD has cosponsored more than 300 projects involving low and zero emission technologies. Funding partners in the program have included private industry, technology developers, academic institutions, research institutions, and government agencies. 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.

Health and Safety Code (H&SC) Section 40448.5.1 requires that the AQMD adopt a plan that describes the expected cost and benefits of proposed projects prior to any Clean
Fuels Program expenditure after January 1, 1996 and find that the proposed projects do not duplicate programs of specified organizations. The initial submittal of the required plan was adopted by the Board at its March 8, 1996 meeting.

Proposal

The attached Update to the Technology Advancement Plan for the Clean Fuels Program is the third submittal of the required plan. This update identifies potential projects to be funded during FY 1997-98. The proposed projects reflect new promising low- and zero-emission technologies and applications that have emerged since the initial submittal. This update includes a number of proposed projects, not all of which are expected to be funded in the current fiscal year given the available budget. Projects not funded in FY 1997-98 may be considered for funding in subsequent fiscal years.

The AQMD’s Technology Advancement program is supported by revenues from several sources. The principal revenue source is the Clean Fuels Program, which, under H&SC Section 40448.5 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support the program’s objectives, albeit with constraints on the use of the funds. Technology advancement efforts are also supported by grants and cost-sharing revenue contracts from various government agencies, such as the EPA and DOE, on a project specific basis. Another potential source to fund the development and demonstration of advanced clean air technologies is the Advanced Technology Fund. This fund was established primarily as a trust fund for revenues received as a result of fines, penalties, and settlements from air pollution violations. Although not required by legislation, but in an attempt for completeness, the proposed Update to the Technology Advancement Plan includes some projects that may be funded by revenue sources other than the Clean Fuels Program. For example, there are several proposed projects that address the development of technologies that would reduce VOC and PM emissions from various stationary source applications. These projects are essentially efforts designed to specifically address the technology advancement needs related to Federal Clean Air Act Section 182(e)(5), as delineated in the 1997 AQMP Revision.

Not all projects identified in this plan are expected to be recommended for funding. Projects in the plan that are deemed ready will be presented individually to the 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 by various parties.

The proposed update is the result of a comprehensive planning and review process. This process has included consideration of AQMP control measures and coordination activities involving outside organizations. This update has also been reviewed by an external panel of experts, listed in the Appendix to the Update. Based on communications with the organizations specified in H&SC Section 40448.5.1 and review of their programs, the projects proposed in this update 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 coordinate with these organizations to ensure that duplication is avoided.

Attachments

Technology Advancement Plan for the Clean Fuels Program for FY 1997-98 update.

SB 199 Agency Coordination Contacts

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