BOARD MEETING DATE: February 3, 2006
AGENDA NO. 9

Approve Establishment of Caltrans High Priority Projects Special Revenue Fund to Implement Federal Emission Reduction Program for South Coast Air Quality Management District

SYNPOSIS:

This action is to establish a Special Revenue Fund and recognize revenues made available under United States Public Law 109-59 §1701(a)(2)(B), enacted on August 10, 2005. A total of $2,000,000 is available to the AQMD over the next five years for the federal Diesel Emissions Reduction Program under the U.S. Department of Transportation Federal Highway Administration (FHWA) Special Project 3807. These federal funds are allocated to the AQMD through FHWA and the California Department of Transportation (Caltrans). FHWA will pass through funds over the next five years in the amount of $400,000 per year. Staff is proposing to apply for a total of $800,000 for Calendar Years 2005 and 2006.

COMMITTEE:

Technology, January 27, 2006. Less than a quorum was present during the discussion of this item; the Chairman communicated his concurrence and recommendation that this item be forwarded for Board consideration. Administrative, February 10, 2006, Recommended Approval.

RECOMMENDED ACTIONS:

1. Establish the Caltrans High Priority Projects Special Revenue Fund for the federal “Diesel Emission Reduction Program for the South Coast Air Quality Management District.”

2. Authorize the Executive Officer to initially apply for funds for Calendar Years 2005 and 2006 from Caltrans for a total of $800,000 and in increments of $400,000 per year until 2009 for a total of up to $2,000,000, and to recognize and place the funds in the Caltrans High Priority Projects Special Revenue Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

United States Public Law 109-59 §1701(a)(2)(B) was enacted on August 10, 2005. The Law authorizes the “Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users,” (SAFETEA-LU Act). Funding for Special Project 3807 of this Act entitled, “Diesel Emission Reduction Program for the South Coast Air Quality Management District” (DERP) allocates up to $2,000,000 in funding for fiscal years 2005 through 2009 to carry high priority projects that will further reduce diesel emissions in the South Coast air district. The federal funds are part of the U.S. Department of Transportation Federal Highway Administration (FHWA) budget. The funds will be made available to the AQMD through the California Department of Transportation (Caltrans).

Proposal

Staff is requesting the Board’s approval to establish the Caltrans High Priority Projects Special Revenue Fund, and to initially apply for calendar years 2005 and 2006 installments of the available funds in an amount not to exceed $800,000 and installments of $400,000 per year until 2009 for a total of up to $2,000,000. As a recipient of federal funds, the AQMD is required to match 20 percent of the total project funds. Projects funded through AB 923 funds will be used as AQMD’s matching funds. The Board may choose to add these funds to augment existing incentive based programs to promote the use of clean fuels and accelerate turnover of older diesel powered vehicles including school buses, on- and off-road diesel powered vehicles and locomotives. Funds may also be utilized to retrofit existing diesel engines with exhaust cleaning devices. Upon initiation of a funding award, staff will bring a list of proposed projects for the Board’s consideration.

Benefits to AQMD

The successful implementation of current incentive-based emission reduction programs have resulted in significant reductions of PM10 and NOx emissions within the South Coast air district. Influx of additional funding will help continue successful progress towards clean air through expanded implementation of emissions-reducing incentive programs. Expansion of incentive programs will also produce concurrent toxic air contaminant emission reductions, which is an additional benefit.

Resource Impacts

There are no additional monetary impacts as a result of this action. The 20 percent local match will be provided from Board-approved AB 923 projects.

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