BOARD MEETING DATE: March 5, 2004
AGENDA NO. 38

Approve Expenditure of Clean Fuel Funds for Testing Gasoline-Hybrid Transit Buses and Oceangoing Vessels

SYNOPSIS:

As a result of returned funds from the Carl Moyer Program, staff has identified $2,333,115 from the Clean Fuels Fund originally allocated as local match to the Moyer Program. Staff recommends that $600,000 of these returned funds be allocated for evaporative emissions testing of gasoline-hybrid transit buses and testing of oceangoing vessels which are eligible for funding under the Moyer Program.

COMMITTEE:

Technology, February 27, 2004, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to designate $600,000 for evaporative emissions testing of gasoline-hybrid transit buses and emissions testing of oceangoing vessels from the Clean Fuels Fund originally approved by the Board in FY 1999-00.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

This is the fifth year of the Carl Moyer Memorial Air Quality Standards Attainment Program (CMP). As part of an annual review, staff has recovered $2,333,115 from the Clean Fuels Fund originally allocated as local match to the Moyer Program. This year is the first year that gasoline-hybrid buses will be funded under the CMP. However, the amount of evaporative emissions generated by these buses is still somewhat uncertain. In addition the replacement of marine engines in the local fleet has led to significant reductions in NOx and PM emissions. Some oceangoing vessels may be good candidates to use lower-emitting fuels while operating within the AQMD waters and may qualify for Carl Moyer Program funding.

Proposal

This is the first year that CMP funding is being expended on gasoline-hybrid transit buses. There is a concern that evaporative emissions normally not reviewed as part of the CMP analysis will result in an overall increase of hydrocarbons from the operation of these buses. Staff recommends that once these buses are in service, testing of evaporative emissions be conducted to determine the actual overall emissions reductions resulting from this new technology.

Staff would also like to consider the potential funding of some oceangoing vessels under the Carl Moyer Program to use lower-emitting fuels while the vessels operate within the AQMD waters. However, staff believes that emissions testing and evaluation of the fuels and related engines are needed in order to determine the effectiveness of this effort.

Staff recommends the Board to approve up to $600,000 from the returned Clean Fuels Fund originally approved by the Board in FY 1999-00, as AQMD’s match to the Carl Moyer Program to conduct testing on gasoline-hybrid transit buses and on oceangoing vessels. Testing on both the gasoline-hybrid transit buses and the oceangoing vessels shall not exceed $300,000 each.

Benefits to AQMD

AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low emission, alternative fuel technologies within its Technology Advancement Office. The AQMD has also supported a number of activities directed to commercialization of low-emission alternative fuel technologies. The successful implementation of the Carl Moyer Program is a direct result of these Technology Advancement activities. The proposed projects will have significant emission benefits for many years.

The vehicles and equipment proposed will operate many years, providing long-term emissions reductions. The operation of oceangoing vessels with lower-emitting fuels, and the use of new gas-hybrid transit buses can reduce significant amounts of NOx emissions at an extremely competitive price.

Resource Impacts

Total cost for the proposed testing shall not exceed $600,000. This amount is originally part of the Clean Fuels Fund previously allocated as AQMD’s match to the CMP for FY 1999-00. These funds will now be redirected for the emissions tests as described in this letter, and will result in no additional cost to the AQMD.

Funding provided and acceptable projects funded by the AQMD as the required local match to the Carl Moyer Program by far exceed the program’s minimum requirement. Therefore, the reallocation of the $600,000 for testing from the Clean Fuels Fund will not effect the Carl Moyer Program’s local match requirement.

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