South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: July 21, 2000 AGENDA NO. 12
Approve Amendments to EV Infrastructure Incentive Program within the FY 1999-00 AB 2766 Discretionary Fund Work Program
SYNOPSIS:
A contract for $375,000 with the California Energy Commission for an EV Infrastructure Incentive Program was approved as part of the MSRC's FY 1999-00 Work Program. This followed a similar MSRC contract in FY 1998-99 for $250,000, but which expired with funds unspent because the CEC's launch of the program was delayed. At its June 22, 2000 meeting, the MSRC approved reallocating the unspent funds totaling $231,000 to the follow-on contract for a total allocation of up to $606,000 as part of the FY 1999-00 Work Program. In addition, the MSRC approved increasing its match from $250 to $500 at the CEC's request. The MSRC requests the Board's approval of the amendments to the EV Infrastructure Incentive Program as part of the FY 1999-00 Work Program.
COMMITTEE:
Mobile Source Air Pollution Reduction Review Committee,
June 22, 2000, Approved Unanimously
RECOMMENDED ACTIONS:
William G. Kleindienst
Chair, MSRC
Background
In September 1990, Assembly Bill 2766 was signed into law (Health & Safety Code Sections 44220-44247) authorizing the imposition of an annual $4 motor vehicle registration fee to fund the implementation of programs exclusively to reduce air pollution from motor vehicles. AB 2766 provides that 30 percent of the annual $4 vehicle registration fee subvened to the AQMD be placed into an account to be allocated pursuant to a work program developed and adopted by the MSRC and approved by the AQMD Governing Board.
The MSRC's FY 1997-99 AB 2766 Discretionary Fund Work Program included a $250,000 allocation for an EV Infrastructure Incentive Program to defray the cost of EV charging infrastructure installation at residences for new purchases or leases of EVs. The program, which is administered by the California Energy Commission, is part of a statewide coordinated approach to reduce barriers for the introduction of EVs. The auto manufacturers agreed to provide up to $500 for each installation in the state, and the CEC up to $500. For the south coast district the MSRC has provided up to an additional $250. It is anticipated that the MSRC's award could result in an additional 1,000 EV purchases or leases in the basin. The CEC contract was scheduled to end June 30, 1999.
In the FY 1999-00 Work Program, the MSRC approved an extension of the CEC's contract until June 30, 2001 and allocated an additional $375,000, for a total contribution of $625,000 to the CEC. However, implementation of the program proceeded slowly and the CEC chose not to extend the contract nor invoice for the additional $375,000. In fact, very little of the original $250,000 was expended. After the first contract expired, Ford and the United States Post Office announced a contract for the single largest EV fleet in California. Based upon this and other automaker infrastructure projections, the CEC requested that a follow-on contract be executed to expend the $375,000 allocated in the FY 1999-00 Work Program. The AQMD Governing Board approved this sole-source contract on February 18, 2000.
Proposal
The CEC requested that the unspent funds from the first contract in the FY 1998-99 Work Program (up to $231,000) be transferred to the follow-on contract of $375,000 for a total MSRC allocation of $606,000 in the FY 1999-00 Work Program. This would ensure sufficient monies in the program and eliminate the need for the CEC to terminate existing contracts with automakers. The CEC also requested that the contract end date be extended through June 30, 2001, to coincide with the end date of the MSRC's light-duty vehicle buydown programs, which help buy down the higher cost of ZEV/LEVs.
The current contract between the MSRC and CEC provides up to $750 for each infrastructure installation/charger in the south coast district, including up to $500 from the CEC and $250 from the MSRC. The CEC has limited funds to support all vehicles placed throughout the state, and believes it may deplete its funding for the south coast district based on current demand. Therefore, the CEC requested that the match contribution from the MSRC increase from $250 to $500 to allow the CEC's contribution to decrease from $500 to $250. This change would still result in a $750 incentive for each infrastructure installation in the south coast district, but would allow the CEC to support approximately 300 more infrastructure installations in this region. The total contribution from the MSRC over two work programs for the EV Infrastructure Incentive Program would not exceed $625,000.
The MSRC unanimously approved these amendments to the CEC contract as part of its FY 1999-00 Work Program, and requests AQMD Board approval of the reallocation of monies from one work program to another and the increase in the match contribution. Overall, the combined allocation would not change.
Sole-Source Justification
Section VIII(B)(2) of the AQMD's Procurement Policy and Procedure identifies four major provisions under which a sole-source award may be justified. This request for sole-source award is made under provision B.2.d. that supports sole-source awards when "other circumstances exist which in determination of the Executive Officer require such a waiver in the best interest of the AQMD." Specifically, B.2.d.(2): Project involving cost sharing by multiple sponsors. In this case, the MSRC has been asked to co-fund a statewide project sponsored by another government agency, the CEC. The CEC will provide administration and oversight of the program at their cost.
Benefits to AQMD
This statewide program could result in 1,000 additional EVs leased or purchased in the south coast district. Since these EVs would replace traditional gasoline-fueled vehicles, this program could contribute to a reduction in all criteria pollutants.
Resource Impacts
Health & Safety Code Section 44243(2)(c) requires the AQMD to deposit the discretionary fund revenues "in an account to be used, pursuant to Section 44244, to provide grants to fund projects for the exclusive purpose of reducing air pollution from motor vehicles." Since the monies for these RFPs will be drawn from this special fund, there would be no fiscal impact on the AQMD’s operational budget.
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