BOARD MEETING DATE: December 11, 1998 AGENDA NO. 10
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 1998-99 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, November 20, 1998, Recommended for Approval
RECOMMENDED ACTION:
Adopt the attached resolution
- updating the Technology Advancement Plan and including it in the Clean Fuels Program; and
- finding that the Plan’s proposed projects do not duplicate any past or present programs of specified organizations.
Barry R. Wallerstein, D.Env.
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. 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 fourth submittal of the required plan. This update identifies potential projects to be funded during 1998-99. 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 1998-99 may be considered for funding in subsequent fiscal years.
In addition to identifying proposed projects to be considered for funding, this Update establishes five key technical areas of highest priority to the AQMD. Those high priority areas include:
These technical priorities will necessarily be balanced by funding availability. 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. The Clean Fuels Program funding legislation is currently due to sunset on August 1, 1999.
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 specific 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 the Technology Advancement Advisory Group, 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.
Resolution
Technology Advancement Plan for the Clean Fuels Program: 1998-99 Update
RESOLUTION NO. 98-
A Resolution of the Governing Board of the South Coast Air Quality Management District (AQMD) updating the Technology Advancement Plan for the Clean Fuels Program and finding that the projects and programs in this plan do not duplicate any other project or program funded by organizations specified in H&SC Section 40448.5.1.
WHEREAS, the Board adopted a Clean Fuels Program in 1988 to expedite the demonstration and commercialization of advanced low-emission and zero-emission technologies and clean fuels; and,
WHEREAS, Health and Safety Code Sections 40404 and 40448.5 require the AQMD to coordinate and manage a clean fuels program to accelerate the utilization of clean-burning fuels within the South Coast Air Basin; and,
WHEREAS, Health and Safety Code Section 40512 and Vehicle Code Section 9250.11 authorize funding for the AQMD Clean Fuels Program; and,
WHEREAS, recent amendments to the Clean Fuels Program by the addition of Health and Safety Code Section 40448.5.1 now require the AQMD to do both of the following prior to expending funds for research, development, and demonstration projects after January 1, 1996:
WHEREAS, a Technology Advancement Plan for the Clean Fuels Program that contained the required descriptions of proposed project expenditures, expected costs, and expected benefits was adopted by the Governing Board on March 8, 1996; and,
WHEREAS, the AQMD has updated the Technology Advancement Plan for the Clean Fuels Program to reflect technological progress and a new fiscal year budget; and,
WHEREAS, the AQMD has contacted the organizations specified in H&SC Section 40448.5.1 and reviewed their programs and projects and has determined that the proposed projects in the update to the Technology Advancement Plan for the Clean Fuels Program do not duplicate any past or present projects; and,
NOW, THEREFORE, BE IT RESOLVED, that the Board adopts an update to the Technology Advancement Plan and includes it in the Clean Fuels Program; and,
BE IT FURTHER RESOLVED, that the Board finds that the proposed projects and programs in the update of the Technology Advancement Plan for the Clean Fuels Program do not duplicate any past or present projects or programs funded by the specified organizations listed in Section 40448.5.1 of the Health and Safety Code; and,
BE IT FURTHER RESOLVED, that staff is directed to periodically update the Technology Advancement Plan for the Clean Fuels Program to be as responsive as possible to technological advances and breakthroughs.
| Dated: ___________________ | ______________________________________ |
| Clerk of the Board |
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