BOARD MEETING DATE: April 5, 2002
AGENDA NO. 12

Establish Fund for Natural Gas Vehicle Partnership (Initiative #3), Recognize Funding from Participating Members, and Authorize Executive Officer to Approve Expenditure for Activities and Projects Selected by Partnership During First Year

SYNOPSIS:

The Board, at its February 1, 2002 meeting, approved the Workplan to implement the eight Strategic Alliance Initiatives set forth by Chairman Norma Glover. One of the initiatives is the creation of a Natural Gas Vehicle Partnership to facilitate the advancement of natural gas vehicle technology and deployment. The participating members will pay two-year membership fees to fund program administration, specific projects, and activities to achieve the goals of the partnership. Staff recommends establishing a Natural Gas Vehicle Partnership Fund to receive contributions from participating members and transferring $25,000 to the fund from the Clean Fuels Fund as AQMD's contribution, and authorizing the Executive Officer to approve expenditures for projects selected by the partnership up to $50,000 for individual expenditures and for a total amount not exceeding $200,000, during the first year of its activity.

COMMITTEE:

Technology, March 22, 2002, Recommended for Approval

RECOMMENDED ACTION:

1. Establish the Natural Gas Vehicle Partnership Fund for creation of the Natural Gas Vehicle Partnership to facilitate the advancement of natural gas vehicle technology and deployment.
   
    
2. Recognize and receive funds from participating members of the Natural Gas Vehicle Partnership.
   
    
3. Authorize the transfer of $25,000 from the Clean Fuels Fund to the Natural Gas Vehicle Partnership Fund as AQMD’s contribution to the Natural Gas Vehicle Partnership.
   
    
4. Authorize the Executive Officer to approve expenditures for activities and projects selected by the Natural Gas Vehicle Partnership during the first year ( through June 30, 2003) of its activity in budgeted amounts not to exceed $ 50,000 for individual expenditures, $200,000 in total as outlined in Table 1, from the Natural Gas Vehicle Partnership Fund provided there would be sufficient funds available.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At the January 11, 2002 Board Meeting, Chairman Norma Glover presented eight Strategic Alliance Initiatives for Board consideration. The proposed Initiatives are set forth to strengthen and create new partnerships at the local, state, and federal level. One of these initiatives is the creation of a Natural Gas Vehicle (NGV) Partnership with the objective of accelerating the development of advanced natural gas vehicle technologies to provide a benchmark for lowering emissions from petroleum based engines and to provide a pathway to future fuel cell use in the next two decades.

Proposal

Under this initiative, AQMD will spearhead the formation of a strategic alliance comprised of state and federal air quality, transportation and energy agencies, together with vehicle and engine manufacturers, fuel providers, transit and refuse hauler associations, and other interested parties to facilitate the advancement of NGV technology and deployment. Under the activities of the partnership, the AQMD will (1) arrange a half-day moderator-facilitated NGV summit, including a round-table discussion about the NGV Partnership’s role in transportation, vehicle, and infrastructure funding and (2) lead the formation of a Partnership Committee that will meet on quarterly basis with high-level representation from each participating member to set a specific agenda to achieve goals.

The Partnership Committee will be chaired by Chairman Norma Glover and its activities will be reported to the AQMD Board every six months. Each participating member will pay a two-year membership fee of $25,000 to fund specific projects to achieve the goals of the partnership. Staff recommends that the Board approve the establishment of an NGV Partnership Fund to receive contributions from participating members and to authorize the Executive Officer to approve individual expenditures up to $50,000 for projects selected by the partnership during the first year of its activity for a total amount not to exceed $200,000. This will expedite the project selection and implementation process, and will help the Partnership Committee to function effectively. The proposed budget is outlined in Table 1:

Table 1: BUDGET OUTLINE FOR THE NGV PARTNERSHIP
 

If the above budget is modified by the Partnership Committee, the Executive Officer will report back to the Board and will seek approval for the modified budget.

Benefits to AQMD

The successful implementation of this initiative will bring public and private stakeholders together and will assist in the development and deployment of a specific number of advanced natural gas vehicles and refueling infrastructure expansion over the next five to ten years. This will in turn increase natural gas’s role as a low emission displacement or augmentation to petroleum fuel where economically feasible.

Resource Impact

Total cost of projects for the NGV Partnership during the first year shall not exceed $200,000, provided there would be sufficient funds in the NGV Partnership Fund. AQMD’s contribution shall be $25,000.

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