BOARD MEETING DATE: May 7, 2004
AGENDA NO. 29

Technology Committee

SYNOPSIS:

The Technology Committee met on April 23, 2004. Major topics included Technology Advancement items reflected in the regular Board Agenda for the May Board meeting and one written report on a completed project. A summary of these topics with the Committee's comments is provided. The next Technology Committee meeting will be on May 28, 2004 at 12:00 p.m. in CC-8.

RECOMMENDED ACTION:

Receive and file.

Roy Wilson, Chair
Technology Committee

Attendance: Chairman Roy Wilson participated by video-teleconference. Committee Vice Chair Cynthia Verdugo-Peralta and Committee member William Craycraft was in attendance at AQMD headquarters. Committee member Dennis Yates was absent.

MAY BOARD AGENDA ITEMS

1. Award Multiple Contracts for Natural Gas Refueling Station Infrastructure: On October 3, 2003 the Board approved release of a $1.5 million RFP to solicit proposals for natural gas refueling station infrastructure projects from the Clean Fuels Fund. Twenty-six proposals were received by the RFP deadline of December 16, 2003. Staff believes that 16 of these proposals deserves funding and proposes that funding, in the amount of $1,280,000 reverted back to the AQMD from its AES Settlement Fund and Clean Fuels Fund be used to fund these projects. This action is to de-obligate prior funding commitments, revert them back into the Clean Fuels Fund and to approve multiple contract awards from this RFP. Total AQMD funding for these projects shall not exceed $2,742,323. Up to $1,726,046 of the reverted funds will be used to fund additional natural gas fueling infrastructure projects in a future RFP.
   The Committee directs the staff to issue the RFP with a budget ranging from $726,046 to $1,726,046. Motion (Verdugo Peralta), seconded (Craycraft). Chair Roy Wilson abstained on four projects awarded to Clean Energy since he sits on SunLine Transit Agency's Board and SunLine Transit Agency has a business relationship with Clean Energy. The motion carried with recommendation to approve the other 12 projects. Committee members Verdugo Peralta and Craycraft forward their communication of approval of the four Clean Energy project awards.)
    
2. Approve Renewal of Grant Agreements under the State Emissions Mitigation Program: On September 13, 2002, the Board approved grants to public agencies to install particulate traps on vehicles for up to $6,000 per trap to reduce particulate emissions. Due to increased costs of materials and de-verification of two particulate traps by CARB, the current pricing cap is not valid. This action is to amend the grant agreements to increase the allowable expenditure of grant funds to up to $8,500 per trap, while maintaining the Board approved grant amount for each public agency. If certain vehicles cannot be retrofitted with a trap at $8,500, staff recommends retrofitting those vehicles with traps that reduce particulate and NOx at a cost not to exceed $18,000 per trap. Staff also proposes to allow the use of grant funds to purchase up to 20 filter cleaning systems, and to extend the deadline of the grants to September 30, 2004 or any later date as approved by CARB.
   Moved (Verdugo Peralta), seconded (Craycraft) and unanimously recommended for approval.
    
3. Execute Contracts to Generate Emission Reduction Credits Under Rule 1121 Mitigation Fee Program: As of October 7, 2003, the AQMD received a total of $804,452 from water heater manufacturers as emission mitigation fees under Rule 1121. The AQMD will collect this mitigation fee until December 2004. In November 2003, a Program Announcement was issued to solicit NOx emission reduction projects. Staff proposes to execute contracts worth approximately $804,197 to fund stationary and mobile source NOx emission reduction projects.
   Moved (Craycraft), seconded (Verdugo Peralta), and unanimously recommended for approval.
    
4. Recognize Revenues and Rename the Fuel Cells Conference Fund to the Clean Fuels Conference Fund to Conduct the Hydrogen Conference: In January 2004, the Board directed staff to organize a conference to facilitate the development of hydrogen-powered technologies, including motor vehicles, refueling infrastructure, and stationary applications. The two-day hydrogen conference is tentatively set for August 16-17, 2004 and is intended to promote awareness among elected officials, opinion leaders, business leaders, and policy makers of the environmental and economic benefits of supporting Southern California's leadership role in building the hydrogen economy. The cost of holding the conference is estimated not to exceed $200,000 and expenditures will be covered through sponsorships, exhibitor fees, and registration fees. This action is to request the Board's approval to recognize conference revenues and to rename and expand the scope of the Fuels Cells Conference Fund to the Clean Fuels Conference Fund to receive revenues and track expenditures.
   Moved (Craycraft), seconded (Verdugo Peralta), and unanimously recommended for approval.

JUNE AGENDA ITEMS

5. Amend Contract to Fund Hydrogen ICE Generator: On June 6, 2003, the Governing Board approved a contract with Stuart Energy to install an electrolyzer to produce hydrogen for vehicle fueling and demonstrate a hydrogen internal combustion engine (ICE) generator. As part of that award, the California Energy Commission (CEC) agreed to co-fund $100,000 for the ICE generator. The CEC currently cannot fulfill this obligation, and staff recommends funding the ICE generator through the Clean Fuels Fund in an amount not to exceed $100,000.
   Moved (Verdugo Peralta), Seconded (Craycraft), and unanimously recommended for approval.

Other Business - There was no other business.

Public Comment - There were no public comments.

The meeting was adjourned at 1:08 p.m.

Attachment

A - Attendance
 

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