BOARD MEETING DATE: May 7, 2004
AGENDA NO. 9
Recognize Revenues and Rename the Fuel Cells Conference Fund to the Clean Fuels Conference Fund to Conduct the Hydrogen Conference
SYNOPSIS:
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 Fuel Cells Conference Fund to the Clean Fuels Conference Fund to receive revenues and track expenditures.
COMMITTEE:
Technology, April 23, 2004, Recommended for Approval
RECOMMENDED ACTION:
- Rename the Fuel Cells Conference Fund the Clean Fuels Conference Fund and expand its scope to fund all Clean Fuels related Conferences and then (a) recognize revenues from the hydrogen conference in the Clean Fuels Conference Fund and (b) advance $200,000 from the Clean Fuels Fund to the Clean Fuels Conference Fund to cover planned conference expenditures pending receipt of conference revenues.
- Approve the hydrogen conference budget of $200,000 and authorize the Executive Officer to approve conference expenditures from the Clean Fuels Conference Fund.
- Authorize the transfer, at the completion of the hydrogen conference, of all surplus revenues from the Clean Fuels Conference Fund to the Clean Fuels Fund.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
In January 2004, the Board directed staff to organize a conference to facilitate the development of hydrogen-powered technologies, including motor vehicles, fueling infrastructure and stationary applications. The event 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. High-level officials, including the President, the U.S. Secretary of Energy, and the Governor, will be invited to speak.
The event, entitled "HYDROGEN: Fueling the Clean Air Future," is tentatively scheduled for August 16-17, 2004 and will be held at the Marriott Desert Springs Resort, Palm Desert, CA.
The conference is expected to draw 200-250 people, including: legislators, local elected officials, business representatives, environmental leaders, vehicle fleet owners, planning officials, venture capital investors, vehicle manufacturers, fuel providers, technical experts, and government representatives. The two-day conference will include plenary speeches and panel sessions, luncheon keynote speakers on both days, an indoor exhibit area, and an outdoor area for "ride and drive" opportunities. Site tours of nearby hydrogen facilities will be offered and there will be a reception in the exhibit area the first day.
Proposal
In order to conduct this conference, staff is asking the Board to rename the Fuel Cell Conference Fund to the Clean Fuels Conference Fund. The Fuel Cells Conference Special Revenue Fund was approved by the Board in 1993 to receive funds and pay expenses for the International Fuel Cells Conference held in 1994. Since that time, this fund was used for other Fuel Cells conferences. Currently, however, technology has shifted and staff recommends expanding the scope of the Fuel Cells Conference Fund for all clean fuels-related conferences, not solely for fuel cells conferences. Staff also requests that the Board recognize revenues received from the hydrogen conference in the Clean Fuels Conference Fund and that the Executive Officer be authorized to approve conference expenditures from the Clean Fuels Conference Fund.
Because many of the expenses will occur early in the planning process before revenues are received, the Board is being asked to authorize the advance of $200,000 from the Clean Fuels Fund to the Clean Fuels Conference Fund to cover planned conference expenditures pending receipt of conference revenues. After completion of the conference, all unexpended revenues in the Clean Fuels Conference Fund will be transferred to the Clean Fuels Fund.
Benefits to AQMD
This conference will increase local, state and national awareness of the AQMD’s leadership position in the area of alternative fuels, including hydrogen. The event will draw together elected officials, equipment manufacturers, fuel providers, federal and state agency representatives, as well as public and private fleet owners and decision-makers to discuss the transition to a hydrogen economy through deployment and commercialization.
Conference Revenue Sources
The AQMD is seeking sponsorships from vehicle manufacturers, fuel providers, equipment manufacturers, and government agencies. The sponsorship levels are as follows:
Platinum Level Sponsors $20,000 Gold Level Sponsors 10,000 Silver Level Sponsors 5,000 Exhibitors 1,000
Registration fees for the conference will be $500 for non-government attendees with a reduced fee for government officials, environmental group representatives, and students.
Proposed Conference Budget
The projected budget is as follows (assuming 250-300 attendees):
Projected Expenses Printing $ 15,000 Mailing 5,000 Facility Fee & Catering 90,000 Conference Materials 20,000 Sound/AV 25,000 Proceedings 6,000 Honoraria and Travel Expenses 10,000 Contingencies 29,000 Total $ 200,000
Projected Revenues Sponsorship Fees $ 140,000 Exhibitor’s Booth Fees 10,000 Registration Fees 50,000 Total $ 200,000
Resource Impacts
Initial expenses will be drawn from the $200,000 transferred from the Clean Fuels Program Funds, but the overall cost of this conference is anticipated to be entirely offset by revenues received from sponsorships, exhibitor fees, and registration fees. Upon completion of the conference, any unexpended revenues shall be transferred to the Clean Fuels Fund. Sufficient AQMD funds are available in the Clean Fuels Fund, which is established as special revenue from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.
/ / /