BOARD MEETING DATE: July 8, 2005
AGENDA NO. 7

Issue Program Announcement for Projects Under Rule 1121 Mitigation Fee Program

SYNOPSIS:

As of April 30, 2005, the AQMD has received $1,741,782 from water heater manufacturers as emission mitigation fees under Rule 1121. In March 2004, the Board approved emission reduction projects for a total of $804,197. This action is to issue a Program Announcement for the remaining amount of $937,585 to solicit stationary and mobile source NOx emission reduction projects.

COMMITTEE:

Technology, June 24, 2005, Recommended for Approval

RECOMMENDED ACTION:

Approve issuance of Program Announcement & Application #PA 2006-01 to solicit stationary and mobile source NOx emission reduction projects under the Rule 1121 Emission Mitigation Fee Program in an amount no less than $937,585 and up to any additional amounts received by the time of awards approval.

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. As per Rule 1121, mitigation fees will be collected until January 1, 2008 after which, the water heater manufacturers will be required to meet more stringent NOx emission standards.

As of April 30, 2005, $1,741,782 in mitigation fees has been collected, of which $804,197 was approved by the Board in March 2004, for projects submitted under the original program announcement, and the remaining balance of $937,585 is available for new projects. Both stationary and mobile source NOx reduction projects qualify under this program.

Proposal

This action is to issue Program Announcement & Application #PA2006-01 to solicit stationary and mobile source NOx emission reduction projects under the Rule 1121 Emission Mitigation Fee Program in an amount of $937,585. If more funds become available by the time of awards approval, additional awards may be made up to the total amount available.

Project Selection Criteria

Projects will be selected based on the cost effectiveness of NOx reduction, project completion and implementation schedule, project type and project location in areas that meet the requirements of Assembly Bill 1390, (Firebaugh) as implemented in the Carl Moyer Program. 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.	Antelope Valley Press	11.	La Opinion	21.	Rafu Shimpo
2.	Black Voice News	12.	La Prensa Hispana	22.	San Bernardino Sun
3.	Chinese Daily News	13.	La Voz Publications	23.	State of California Contracts
4.	Desert Sun	14.	Los Angeles Daily News		Register
5.	Eastern Group Publications	15.	Los Angeles Sentinel	24.	The Daily Breeze
6.	El Chicano	16.	Los Angeles Times	25.	The Excelsior
7.	El Informador	17.	Orange County Register	26.	The Signal
8.	Inland Empire Hispanic News	18.	Philippine News	27.	Wave Community Newspapers
9.	Inland Valley Daily Bulletin	19.	Precinct Reporter
10.	Korea Central Daily	20.	Press Enterprise

Additionally, potential bidders may 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 implementation of qualified projects under this program will help offset NOx emissions from natural gas fired water heaters that currently do not meet the NOx emission requirements of Rule 1121.

Resource Impacts

This program announcement proposes to fund projects in an amount no less than $937,585 from the Rule 1121 Mitigation Fee Program Fund.

Attachment (DOC* 70kb)

Program Announcement & Application #PA 2006-01

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