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PROPOSAL:

Transfer $1.5 Million from the Air Quality Assistance Fund to the General Purpose Agency Fund To Be Held for the Regional Transportation Agencies’ Coalition

SYNOPSIS:

The AQMD is required by the state Health & Safety Code to provide $1.5 million, on or before January 15, 1998, to the Regional Transportation Agencies’ Coalition (RTAC) or its successor agency for the purpose of enabling regional or county rideshare agencies to provide marketing and client services to maximize voluntary ridesharing in the air basin. Since RTAC does not have the authority to receive and safeguard funds, AQMD will transfer the money to an agency fund pending direction from RTAC for disbursement.

COMMITTEE:

Mobile Source, December 11, less than three members were present and therefore, pursuant to the Procedures for Standing Committees of the Governing Board, the Committee provides this communication but no recommendation.

Administrative, December 19, 1997, Recommended for Approval

RECOMMENDED ACTION:

1. Transfer $1.5 million from the Air Quality Assistance Fund to the General Purpose Agency Fund, by January 15, 1998, to be held pending direction from RTAC for disbursement.

2. Authorize the Executive Officer to disburse monies from this agency fund, as directed by RTAC, either directly to county or regional rideshare agencies selected by RTAC, or to one or more member agencies of RTAC which commit to safeguard and disburse the funds to county or regional rideshare agencies selected by RTAC.

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

Background

On April 14, 1995, the Board adopted Rules 1501 - Work Trip Reduction Plans and 1501.1 - Alternatives to Work Trip Reduction Plans to comply with federal and state requirements for employer-based emission reduction programs in extreme nonattainment areas. Subsequently, on December 8, 1995, in response to state legislation prohibiting the mandatory submittal of trip reduction plans, the Board adopted Rule 2202 - On-Road Motor Vehicle Mitigation Options as a replacement rule that did not mandate trip reduction plan submittals, yet allowed the AQMD to remain in compliance with Federal and State Clean Air Act requirements.

Rule 2202 provides members of the regulated community with a menu of flexible and cost-effective emission reduction strategies to meet the emission reduction target for their sites. Compliance options for employers include old-vehicle scrapping; credits from clean on-road vehicles and off-road equipment; the use of remote sensing to identify and subsequently repair gross polluting vehicles; and emission reduction credits from stationary sources. In addition, employers are credited for the use of alternative fuel vehicles, the reduction of vehicle miles traveled, and other trip reduction activities. An Air Quality Investment Program (AQIP) is also offered to employers, as an alternative means of compliance, with options for one year or three year compliance. Furthermore, as an alternative to meeting an emission reduction target, Rule 2202 allows companies that elect to continue implementing traditional rideshare plans to be deemed in compliance with the Rule.

On November 8, 1996, the Board amended Rule 2202 to be consistent with Health & Safety Code Sections 40458 and 44243.5, which became law effective on January 1, 1997 [ Health & Safety Code Sections 40458 and 44243.5 added pursuant to SB 836 (see Attachment 1) which was approved by the State Legislature August 31, 1996 and signed by the Governor on September 27, 1996] . The new law directed the AQMD to raise the compliance threshold from 100 employees to 250 employees per worksite and could lead to a phase-out of Rule 2202 if equivalent emission reductions can be obtained through voluntary ridesharing or other replacement measures. Additionally, this law directs the AQMD to annually appropriate $1.5 million to RTAC on or before January 15 of each year. RTAC is to fully allocate the funds to county or regional rideshare agencies for the purpose of providing marketing and client services to maximize voluntary ridesharing.

RTAC’s membership consists of one representative from each of the following agencies:

• Riverside County Transportation Commission
• Los Angeles Metropolitan Transportation Authority
• Ventura County Transportation Commission
• Orange County Transportation Authority
• San Bernardino Associated Governments
• Southern California Association of Governments
• Imperial Valley Association of Governments
• Caltrans
• South Coast Air Quality Management District
• Ventura County Air Pollution Control District, and
• Mojave Desert Air Quality Management District

For 1997, the RTAC Board appointed SCAG as the designee to receive and disburse these funds and report to RTAC on the fund expenditures. The AQMD transferred $1.5 million directly to SCAG, pursuant to the provisions of a formal agreement with RTAC and SCAG.

In turn, SCAG entered into contractual agreements with the Transportation Commissions to fund programs that provide marketing and client services to maximize voluntary ridesharing. These programs target employees at worksites in the South Coast Air Basin who commute during the peak period to worksites not regulated by AQMD Rule 2202. SCAG obtained RTAC’s approval prior to the execution of the agreements.

Los Angeles County Corridor Campaigns $864,160 Allocated

San Gabriel Valley, 405 Freeway & 605 Freeway $0 Expended [ Expenditures are through October 31, 1997.]

Sponsored by Los Angeles County Metropolitan Transportation Agency
(LACMTA)

Program: Markets and administers a $2 per day incentive program to Single Occupancy Vehicle (SOV) commuters in Los Angeles County along congested corridors who try an alternative mode for at least three months.

Metrolink - Rail Connector to Work $237,730 Allocated

Sponsored by Orange County Transportation Authority (OCTA) $165,884 Expended

Program: Markets free bus connecting service from Orange County Metrolink stations to commuters of employment sites within Orange County.

I-10 Commute Reduction $171,410 Allocated

Sponsored by San Bernardino Associated Governments (SANBAG) $24,209 Expended

and the Riverside County Transportation Commission (RCTC)

Program: Provides incentives directly to all commuters whose ultimate destination is a worksite with under 250 employees along the I-10 corridor from the I-15 confluence to the Los Angeles County line.

SR-60 Corridor Campaign $124,160 Allocated

Sponsored by SANBAG and RCTC $10,259 Expended

Program: Provides incentives to encourage existing SOV commuters who commute from Riverside and San Bernardino Counties to employment centers in Los Angeles and Orange Counties to transition to newly constructed High Occupancy Vehicle (HOV) Lanes.

Customized Employer Rideshare Services $102,540 Allocated

Sponsored by SANBAG and RCTC $17,569 Expended

Program: Provides assistance, marketing and incentives to employers with fewer than 250 employees in the South Coast Air Basin region or the Inland Empire.

Through October 31, 1997, program expenditures total $217,921 which equates to 15% of the $1.5 million allocated. The project end dates range from February 1, 1999 through July 2, 1999.

Proposal

Pursuant to the requirements of Health and Safety Code Section 44243.5, the AQMD is required to provide $1.5 million to RTAC by January 15, 1998. Since RTAC does not have the authority to receive and safeguard funds, staff proposes that the Board transfer $1.5 million from the Air Quality Assistance Fund to the General Purpose Agency Fund by January 15, 1998, to be held on behalf of RTAC, and authorize the Executive Officer to disburse the funds as directed by RTAC. RTAC may either direct the disbursement of funds directly to one or more county or regional rideshare agencies, or may select one or more of its own members to serve as custodian of the funds until recipient agencies are identified. The RTAC agenda for its meeting on January 23, 1998, includes an item regarding the selection of a custodian for the funds. Health and Safety Code Section 44243.5 reads as follows:

(a) The south coast district shall provide one million five hundred thousand dollars ($1,500,000) annually on or before January 15 of each year to the Regional Transportation Agencies Coalition or its successor agency.

(1) Until January 1, 1999, the south coast district may utilize revenues from the fund established pursuant to Health and Safety Code Section 40448.7 for the purpose of this section. Notwithstanding subsection 40448.7(a)(1), the district shall not be required to annually allocate one million dollars ($1,000,000) to the Air Quality Assistance Fund to replace revenues allocated pursuant to this section.

(2) After January 1, 1999, the south coast district may utilize revenues received from civil and criminal penalties, out of court settlements or other sources for the purpose of this section.

(3) After January 1, 1999, the south coast district may utilize revenues generated pursuant to Health and Safety Code Section 44243 for the purpose of this section.

AQMP and Legal Mandates

Health & Safety Code Sections 40458 and 44243.5 became law effective January 1, 1997. The State and Federal Clean Air Acts require the AQMD to develop and implement employer-based emission reduction programs. The proposed expenditure is expected to promote voluntary ridesharing and is not expected to adversely affect the attainment of clean air goals.

Emission Impacts

As a result of the new law, $1.5 million of AQMD funds will be redirected to programs marketing voluntary rideshare and client services. The emission impacts of these programs to promote voluntary ridesharing will not be known until after January 1, 1998, but the intent of the Legislature is to achieve emission reductions equivalent to that which would have been attained under Rule 2202.

Resource Impacts

Expenditure of these funds will result in a loss of $1.5 million from the AQMD’s small business loan guaranty program. As of June 30, 1997, the existing fund had a balance of $3.37 million, of which approximately $800,000 is committed to actual loan guaranties.

After January 1, 1999, the AQMD must determine how continuing appropriation will be funded. Penalty revenues (approximately $1.0 million per year) are now spent on small business assistance and outreach programs.

Attachments

SB 836 (Lewis) Language

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