BOARD MEETING DATE: June 4, 2004
AGENDA NO. 11

Issue Program Announcement and Establish $1 Million Special Fund for PM10 or NOx Reduction Projects in Disproportionately Impacted Areas

SYNOPSIS:

Under Rule 1309.1 power plants have paid the AQMD mitigation fees for the privilege of obtaining PM10 credits from the AQMD's Priority Reserve. These fees are to be used for PM10 reduction projects. By settlement agreement in CBE; OCE v. SCAQMD, U.S. District Court Case No. 03-06985 WMB (CTx), the AQMD agreed to allocate $1 million of these funds to emission reduction projects in disproportionately impacted areas and to establish a special fund for such projects. This action is to take $1 million from the 1309.1 Priority Reserve Fund and create a special fund for PM10 and/or NOx Reduction Projects in disproportionately impacted areas, and to release a Program Announcement to solicit such emission reduction projects for funding.

COMMITTEE:

Technology, May 28, 2004, Recommended for Approval

RECOMMENDED ACTIONS:

1. Establish a special fund titled "CBE/Our Children’s Earth Settlement Agreement Fund" and transfer $1 million from the Rule 1309.1 Priority Reserve Fund to this new fund for PM10 and/or NOx reduction projects.
    
2. Issue Program Announcement # PA 2004-08 for PM10 and/or NOx reduction projects in disproportionately impacted areas.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Under Rule 1309.1, power plants have paid the AQMD mitigation fees to obtain PM10 credits from the District’s Priority Reserve. These fees are to be used for PM10 reduction projects. Projects that reduce NOx are also eligible because NOx is a precursor to PM10. In March 2004, the Governing Board approved a settlement in Communities for a Better Environment and Our Children’s Earth Foundation v. SCAQMD, U.S. District Court Case No. 03-06985 WMB (CTx). As part of that settlement, AQMD agreed to create a special fund of $1 million from the Rule 1309.1 Priority Reserve Fund to be used for projects that reduce PM10 and/or NOx emissions in disproportionately impacted areas as determined under the AQMD process for implementing AB 1390 (Firebaugh).

Proposal

Staff proposes to release the attached Program Announcement to solicit projects for funding from the $1 million set-aside. In order to qualify for funding, the project must be located in a disproportionately impacted area, as defined below:

a)	Poverty Level: An area where at least 10% of the population falls below the Federal poverty level based on the year 2000 census data, and
b)	PM Exposure: An area where the highest 15% of PM concentration exists. The highest 15% of PM concentration is 46 micrograms per cubic meter and above, on an annual average, or
c)	Air Toxics Exposure: An area where the cancer risk is 1,000 in a million and above (based on Mates II estimates).

Disproportionately impacted areas are shown on the attached map. Special circumstances exist in some areas, such as the Ports of Long Beach and Los Angeles. Since there are no residents within the ports, poverty ranking could not be established. In this case, the poverty ranking from the adjacent on-shore areas were extended to the port since these populated areas are directly impacted by port activities.

All projects located in disproportionately impacted areas will be evaluated based on the following criteria:

1. Cost effectiveness for PM₁₀ and NOx emission reductions, not exceeding the cost effectiveness limits established in the Carl Moyer Program Guidelines (40 points total, with 15 points for PM10 and 25 points for NOx)
    
2. Providing innovative solutions for community needs (40 points):

• Innovative technology
• Use of clean fuel
• Address community needs

3. Project strength and implementation schedule (20 points)

An evaluation panel comprised of Communities for a Better Environment (CBE), Our Children’s Earth Foundation (OCE), CARB and AQMD staff will evaluate the proposals and recommend projects to the Board for approval. Proposals receiving less than 50 points will not be considered. If available funding is not exhausted with the outlined methodology, then staff will return to the Governing Board for direction.

In addition, staff is proposing to create a special fund titled "CBE Settlement Agreement Fund" "CBE/Our Children's Earth Settlement Agreement Fund" to fund these projects in the amount of $1 million to be transferred from the Rule 1309.1 Priority Reserve Fund. (clerical correction made following the Board Meeting)

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids from all for-profit and non-profit organizations will be published in the following publications:
 

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

Additionally, potential bidders will be notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ 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 where it can be viewed by making menu selections "Inside AQMD"/"Employment and Business Opportunities"/"Business Opportunities" or by going directly to http://www.aqmd.gov/rfp/index.html). Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Benefits to AQMD

The successful implementation of this program will result in reducing PM10 and/or NOx emissions in disproportionately impacted areas. The program will also produce concurrent toxic air contaminant emission reductions, which is an additional benefit.

Resource Impacts

The total cost of the proposed program shall not exceed $1 million. A special fund will be created from the Rule 1309.1 Priority Reserve Fund to generate PM10 and/or NOx emission reductions in disproportionately impacted areas. Sufficient funds are available from Rule 1309.1 Priority Reserve Fund.

Attachment

1. Program Announcement #PA2004-08
2. Map of Disproportionately Impacted Areas

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