BOARD MEETING DATE: November 7, 2003
AGENDA NO. 5

PROPOSAL:

Issue Program Announcement for Projects Under the Rule 1121 Mitigation Fee Program

SYNOPSIS:

As of October 7, 2003, the AQMD has received $804,452 from water heater manufacturers as emission mitigation fees under Rule 1121. The AQMD will collect this mitigation fee until December 2004. Staff proposes to issue a Program Announcement for $804,452 to solicit stationary and mobile source NOx emission reduction projects.

COMMITTEE:

Technology, October 24, 2003, Recommended for Approval

RECOMMENDED ACTION:

Approve issuance of Program Announcement & Application #PA 2004-03 to solicit stationary and mobile source NOx emission reduction projects under the Rule 1121 Emission Mitigation Fee Program in an amount not to exceed $804,452.

Barry R. Wallerstein, D.Env.
Executive Officer


Background

Under Rule 1121 - Control of Nitrogen Oxides from Residential Type, Natural Gas Fired Water Heaters, emission mitigation fees are collected from water heater manufacturers to fund stationary and mobile source emission reduction projects targeted at offsetting NOx emissions from water heaters that do not currently meet Rule 1121 emission standards. Mitigation fees will be collected until December 31, 2004 after which, the water heater manufacturers will be required to meet more stringent NOx emission standards.

As of October 7, 2003, $804,452 in mitigation fees has been collected. Both stationary and mobile source NOx reduction projects qualify under this program.

Proposal

Staff proposes to issue Program Announcement & Application PA #2004-03 to solicit stationary and mobile source NOx emission reduction projects under the Rule 1121 Emission Mitigation Fee Program in an amount not to exceed $804,452.

Project Selection Criteria

Projects will be selected based on the cost effectiveness of NOx reduction, project completion and implementation schedule, and project type. The types of projects that are eligible for this program are listed in the program announcement.

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 qualified projects under this program will help offset NOx emissions from natural gas fired water heaters that currently do not meet the requirements of Rule 1121.

Resource Impacts

The AQMD has so far collected $804,452 from water heater manufacturers in mitigation fees under the Rule 1121 Mitigation Fee Program Fund. This program announcement proposes to fund projects in an amount not to exceed $804,452 from this fund.

Attachment

Program Announcement & Application No: PA #2004-03 – Rule 1121 Mitigation Fee Program

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