BOARD MEETING DATE: March 7, 2003
AGENDA NO. 8

Execute Additional Contracts to Generate Emissions Credits Under the State Emissions Mitigation Program

SYNOPSIS:

At the July 20, 2001 meeting, the Board established the State Emissions Mitigation Fund to recognize State funds from CARB. This action was in response to the Governor’s statewide program to mitigate excess emissions from peaker power generation units. With CARB’s recommendation, staff proposes the approval of marine vessel, locomotive, and mine haul truck projects using the remaining available funds of $2,352,138. Staff also proposes to reallocate $48,000 from a PM trap project with Elsinore Valley Municipal Water District to Los Angeles County, Department of Public Works.

COMMITTEE:

Technology, February 28, 2003, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute a contract with Seaboard Marine to re-power 13 auxiliary marine vessel engines in an amount not to exceed $226,250 from the State Emissions Mitigation Fund. This project is listed in Attachment A.
   
   
2. Authorize the Chairman to execute a contract with OceanAir Environmental to re-power 38 auxiliary marine vessel engines in an amount not to exceed $710,000 from the State Emissions Mitigation Fund. This project is listed in Attachment A.
   
   
3. Authorize the Chairman to execute a contract with Seaboard Marine to re-power two main marine vessel engines and acquire one global positioning system (GPS) unit in an amount not to exceed $118,650 from the State Emissions Mitigation Fund. This project is listed in Attachment A.
   
   
4. Authorize the Chairman to execute a contract with OceanAir Environmental to re-power two main marine vessel engines and acquire two GPS units in an amount not to exceed $119,600 from the State Emissions Mitigation Fund. This project is listed in Attachment A.
   
   
5. Authorize the Chairman to execute a contract with OceanAir Environmental to re-manufacture three pre-1988 diesel-fueled locomotive engines with low-emission technologies in an amount not to exceed $690,000 from the State Emissions Mitigation Fund. This project is listed in Attachment A.
   
   
6. Authorize the Chairman to execute a contract with OceanAir Environmental to replace 12 pre-1988 diesel-fueled forklifts with new, low-emission diesel-fueled forklifts in an amount not to exceed $480,000 from the State Emissions Mitigation Fund. This project is listed in Attachment A.
   
   
7. Amend September 6, 2002 Board approved PM trap project award with Elsinore Valley Municipal Water District for a total of $48,000 to Los Angeles County, Department of Public Works under the State Emissions Mitigation Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 2001, Governor Davis created a statewide NOx and PM Reduction Program to mitigate excess emissions from peaker power generation units that are needed to alleviate the power crisis in California. In response to this request, the Board at its July 20, 2001 meeting, approved the establishment of the State Emissions Mitigation Fund. The AQMD received a total of $28,922,925 under this program in Calendar Years 2001 and 2002. Some of the funds have not been used due to uncommitted projects and projects that cannot meet the required deadlines. An amount of $2,352,138 is left over.

Proposal

The projects that were considered for funding were received under the Carl Moyer Program RFP, Rule 2202 AQIP RFP, and projects that were submitted in response to the Port of Los Angeles Program Announcement. With CARB’s recommendation, staff proposes the approval of marine vessel, locomotive, forklift, and scraper projects worth $2,344,500. The projects were selected based on cost effectiveness, emission reductions, and project completion schedules.

The list of proposed projects in Attachment A shows the cost and the expected NO_x and particulate matter (PM) emissions reductions for this project. Once realized, these projects will offset emission increases from peaker power generation units that must operate to supply peak power loads. Contracts will be executed for each selected project expeditiously so that the emission reductions can occur as soon as possible. It is estimated that all projects will be completed by June 30, 2003.

On September 13, 2002, the Board approved a project with Elsinore Valley Municipal Water District to retrofit eight vehicles with PM traps for a total sum of $48,000. Elsinore Valley informed AQMD staff on January 15, 2003 that the project cannot be implemented. Staff proposes to award this total sum of $48,000 to Los Angeles County, Department of Public Works, to retrofit eight similar vehicles with PM traps.

Benefits to AQMD

The successful implementation of this program will result in mitigation of excess NO_x and PM emissions produced by peaking power plants, which must operate to accommodate peak electrical loads. These projects will also produce concurrent toxic compounds emissions reductions (e.g. lowered diesel exhaust particulate), which is an additional benefit. Finally, administration of this program at the local level will provide greater certainty and confidence for achieving the emission reductions since the AQMD has acquired experience and expertise in identifying emission sources and available control or prevention technologies.

Resource Impacts

Total cost of the proposed projects listed in Attachment A, shall not exceed $2,344,500 from the State Emissions Mitigation Fund.

Attachment

List of State Emission Mitigation Projects

Attachment A: List of State Emission Mitigation Projects
 

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