BOARD MEETING DATE: July 8, 2005
AGENDA NO. 8
Issue Program Announcement for Air Quality Improvement Projects Funded by Rule 1173 Mitigation Fees
SYNOPSIS:
In December 2002, the Board approved amendments to Rule 1173 which include a mitigation fee provision. In lieu of connecting pressure relief devices (PRDs) to a vapor recovery system, facilities subject to Rule 1173 may elect to pay a mitigation fee for each release of VOC from any PRD exceeding the thresholds specified in the rule. In September 2003, the Board created a special revenue fund to account for revenues received and track projects funded with mitigation fees. Approximately $1.4 million is available to fund air quality improvement projects. This action is to issue a program announcement to solicit air quality improvement projects at the facility or in the surrounding communities.
COMMITTEE:
Technology, June 24, 2005, Recommended for Approval
RECOMMENDED ACTIONS:
Approve issuance of Program Announcement #PA 2006-03 for air quality improvement projects to be funded under Rule 1173 Mitigation Fee Program (Fund 44).
Barry R. Wallerstein, D.Env.
Executive Officer
Background
In December 2002, the Board approved amendments to Rule 1173 which include an alternative compliance option, allowing the payment of a mitigation fee provision. In lieu of connecting pressure relief devices (PRDs) to a vapor recovery/control system, facilities subject to Rule 1173 may elect to pay a mitigation fee of $350,000 for each release of VOC from any PRD exceeding the thresholds specified in the rule. In September 2003, the Board created a special revenue fund to account for the Rule 1173 mitigation fees collected and track projects funded through these fees. On April 22, 2004, staff held a meeting with community and facilities representatives to solicit their input on potential air quality improvement projects.
Proposal
To date, approximately $1.4 million in mitigation fees has been collected as a result of four release events that occurred at two refineries: Shell Oil Products in Wilmington and BP West Coast Products in Carson. Shell Oil Products has paid $1,050,000 for three releases, and BP West Coast Products has paid $350,000 for one release. This action is to issue Program Announcement #PA2006-03 to solicit air quality improvement projects at the facilities or in the surrounding communities with approximately $1.4 million in funding from the Rule 1173 Mitigation Fees Special Revenue Fund. The proposed projects must be emission reduction projects, including VOC emission reductions. If more funds become available by the time of awards approval, more projects will be awarded up to the total amount of funds available.
Proposed projects will be evaluated according to the following criteria:
| a) | Project Location: The project shall be located at the facility where the release occurred or in the surrounding communities. The mitigation fees were collected from Shell Oil Products and BP West Coast Products. Only proposed projects located in the Cities of Wilmington and Carson or within a 5-mile radius of the facility, including portions of the City of Long Beach, will be given 20 points. Other projects located within a 5 to 10 mile radius of the facility or projects located at the refinery will be assigned 10 points. (20 points total) |
| b) | Cost Effectiveness of Emission Reductions: Cost effectiveness shall be determined in accordance with the Carl Moyer Program Advisory No. 05-001, and meet the limits specified in the Carl Moyer Program. Emission reductions of VOC are a priority and will carry greater weight in the evaluation. The type of project (e.g., stationary or mobile) and associated emission reduction benefit to the community will also be considered. The emission reductions must be surplus to any existing rule requirement or other federal, state and local rules and regulations. (40 points total, with 30 points for VOC and 5 points each for NOx and PM10) |
| c) | Innovative Solutions for Community Needs: (20 points total)
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| d) | Project strength and implementation schedule (20 points total) |
An evaluation panel 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.
Outreach
In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids 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 successful implementation of this program will result in reducing VOC emissions providing mitigation for the excess VOC releases from PRDs subject to Rule 1173. 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 $1.4 million. Sufficient funds are available from the Rule 1173 Mitigation Fees Special Revenue Fund.
Attachment (DOC* 113kb)
Program Announcement #PA 2006-03
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