South Coast Air Quality Management District

Approve Issuance of Program Announcement for Projects at Port of Los Angeles under the NOx and PM Emission Reduction Credit Program and Execute a Memorandum of Agreement with Port of Los Angeles

SYNOPSIS:

On June 4, 2002, the AQMD received a $1,000,000 grant award from CARB under the NOx and PM Emission Reduction Credit Program to fund NOx and PM emissions reduction projects at the Port of Los Angeles (POLA). It is expected that POLA will provide $1,000,000 in match funds. Staff proposes to issue a Program Announcement for $2,000,000 to solicit projects at POLA and to execute a Memorandum of Agreement (MOA) with POLA to recognize the expected $1,000,000 match fund.

COMMITTEE:

Technology, August 23, 2002. Less than a quorum was present during the discussion of this item; the Chairman communicated his concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

RECOMMENDED ACTION:

1. Authorize the Executive Officer to enter into a Memorandum of Agreement (MOA) with POLA to establish the Port of Los Angeles NOx and PM Emission Reduction Credit Program.
   
   
2. Authorize the Executive Officer to receive $1,000,000 from POLA for the NOx and PM Emission Reduction Credit Program as part of match funds as required by the program, and place them in the State Emissions Mitigation Fund.
   
   
3. Approve issuance of Program Announcement & Application #PA 2003-06 to implement NOx and PM emissions reduction projects at POLA under the NOx and PM Emission Reduction Credit Program in an amount not to exceed $2,000,000, as part of an ongoing effort to expeditiously reduce public exposure to air toxics and other pollutants for the State Emission Mitigation Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

CARB has awarded the AQMD $1,000,000 to implement emission reduction projects under the NOx and PM Emission Reduction Credit Program at POLA. The focus of this program is to reduce emissions from diesel-fueled mobile sources. The deadline for implementation of these projects is March 31, 2003. Under CARB’s direction, this program requires a 1:1 matching in funding from contractors or the POLA, which will increase the total funding amount to $2,000,000.

Proposal

Staff proposes to issue a Program Announcement & Application #PA 2003-06 to implement NOx and PM emissions reduction projects at POLA under the NOx and PM Emission Reduction Credit Program in an amount not to exceed $2,000,000.

The AQMD expects to receive $1,000,000 from POLA for the purpose of augmenting NOx and PM Emission Reduction Credit Program funds. Currently, the AQMD and POLA are working on securing this match fund. A Memorandum of Agreement (MOA) between the AQMD and POLA establishing the NOx and PM Emission Reduction Credit Program Assistance is included for Board review and approval. As proposed, the MOA will expire on December 31, 2003.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the Program Announcement & Application and inviting applications will be published in the following publications:
 

1.	Angeles Mesa Wave, The	11.	Inland Valley Daily Bulletin	21.	Palm Springs Desert Sun
2.	Antelope Valley Press	12.	Korea Central Daily	22.	Philippine News
3.	Black Voice News	13.	La Opinion	23.	Precinct Reporter
4.	Central News Wave	14	La Prensa	24.	Rafu Shimpo
5.	Chinese Daily News	15.	La Voz	25.	Press Enterprise
6.	Eastern Group Publications	16.	Los Angeles Daily News	26.	San Bernardino Sun
7.	El Chicano	17.	Los Angeles Sentinel	27.	Santa Clarita Signal
8	El Informador	18.	Los Angeles Times	28.	The Wave
9.	Excelsior, The	19.	M/W/DVBE Source	29.	State of California Contracts
10.	Inland Empire Hispanic News	20.	Orange County Register		Register

Additionally, potential applicants will be notified utilizing the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Notice of the Program Announcement & Application will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Benefits to AQMD

The implementation of these projects at POLA, which is in the area defined by AB1390 (Firebaugh), will result in significant reductions of NOx, PM, hydrocarbons, and toxics. These projects must be implemented by March 31, 2003 such that the emission reductions will take place on a near-term basis.

The execution of the MOA will expand the project scope and also provide increases expertise on the projects at POLA. This will also provide additional resources to review, monitor, and report on the status of the projects.

Resource Impacts

The AQMD has been awarded $1,000,000 by CARB under the NOx and PM Emission Reduction Credit Program and it is expected that POLA will match funds with $1,000,000. The projects under this Program Announcement will be funded from the $2,000,000 from the State Emissions Mitigation fund and anticipated POLA contributions.

Attachments

ATTACHMENT 1

MEMORANDUM OF AGREEMENT
TO ESTABLISH THE ASSISTANCE BY THE PORT OF LOS ANGELES
TO THE NOX AND PM EMISSION REDUCTION CREDIT PROGRAM

This Memorandum of Agreement (hereinafter called "Agreement") made the _____ day of _____, 2001, is entered into by the SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (hereinafter called "District") and the CITY OF LOS ANGELES, acting by and through the Los Angeles Board of Harbor Commissioners (hereinafter collectively called "Port").

1. This Agreement is made with the reference to the following recitals:

1. The NOx and PM Emission Reduction Credit Program is a grant program under the authority of the California Air Resources Board (CARB) that funds the incremental cost of lower emission vehicles and equipment, including marine vessels. Such grants contribute to the voluntary, near-term, reductions in emissions of oxides of nitrogen (NOx), that are necessary for California to meet its clean air commitments under the State Implementation Plan (SIP), and reductions in emissions of particulate matter (PM) that contribute to the PM air quality of the South Coast Air Basin.
   
   
2. The District is the regional regulatory agency, with jurisdiction over air quality in the South Coast Air Basin, which participated in the development of the federally approved 1997 California SIP for ozone, and is the regional authority responsible for the local administration and implementation of the NOx and PM Emission Reduction Credit Program.
   
   
3. The Port has as its mandate the accommodation of maritime commerce to benefit the Region, State, and Nation, in accordance with the Tidelands Trust and California Coastal Act consistent with the protection of environmental resources.
   
   
4. The District and the Port believe that the NOx and PM Emission Reduction Credit Program provides a significant opportunity to reduce NOx and PM emissions to the benefit of the region's air quality and wish to cooperate through this Agreement to further extend these air quality benefits to the Port of Los Angeles.
   
   
5. The Port intends to generate funds for qualifying projects or associated infrastructure within Port jurisdictional boundaries, to be used in place of, or in addition to, NOx and PM Emission Reduction Credit Program funds, in compliance with the guidelines and requirements established by CARB and the District.

2. NOW, THEREFORE, in consideration of the mutual interests and benefits to be derived from the Port of Los Angeles participation in the NOx and PM Emission Reduction Credit Program, the parties agree as follows:

1. The Port will contribute $1,000,000 to the NOx and PM Emission Reduction Credit Program Fund as part of local match funds for the Fiscal Year 2002-03.
   
   
2. The Port may assist the District in evaluating project applications/proposals in accordance with CARB guidelines and District requirements including the cost effectiveness criteria established pursuant to the District's current solicitation (AQMD Program Announcement #PA 2003-06). The Port and the District shall jointly determine which projects should be awarded relative to the Port's portion of the total funds. The Port recognizes that the District has sole authority to determine which projects should be awarded relative to the non-Port contributed funds.
   
   
3. The Port’s contribution for the current solicitation (District Program Announcement #PA 2003-06) is limited to $1,000,000, and will be used exclusively for funding projects located at the Port of Los Angeles.
   
   
4. The Port and the maritime community shall not be prohibited from requesting funding under other categories of the District NOx and PM Emission Reduction Credit Program.
   
   
5. This Agreement shall be in full force and in effect when signed by both parties. The initial term of this agreement will expire on December 31, 2003. Prior to the renewal or expiration of this Agreement all parties agree to meet to evaluate the need for Agreement modification for continuing participation for future CARB, NOx and PM Emission Reduction Credit Program solicitations.
   
   
6. This Agreement may be terminated in whole or in part by either party with a 60-day notice. If terminated, unspent and uncommitted Port funds will be applied to similar programs at the Port or returned to the Port consistent with current District NOx and PM Emission Reduction Credit Program.
   
   
7. The District will demonstrate matching funding by providing the Port with a report of project awards within the jurisdiction of the Port of Los Angeles.
   
   

SIGNATORIES

TO THE MEMORANDUM OF AGREEMENT TO ESTABLISH THE ASSISTANCE BY THE PORT OF LOS ANGELES TO THE NOX AND PM EMISSION REDUCTION CREDIT PROGRAM.
 

DATE: ____________________
PORT OF LOS ANGELES	SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
___________________________ Larry R. Keller Executive Director	____________________________________ Barry R. Wallerstein Executive Officer
APPROVED AS TO FORM	APPROVED AS TO FORM
___________________________   Port of Los Angeles Counsel	____________________________________ Barbara Baird District Counsel

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