BOARD MEETING DATE: January 6, 2006
AGENDA NO. 28

Allocate Additional Funds from Rule 1309.1 Priority Reserve and Increase Funding Limit to Retrofit Diesel Backup Generators Owned by Schools

SYNOPSIS:

At its October 1, 2004 meeting, the Board approved grants to schools to retrofit diesel backup generators with particulate traps.  This action is to increase the amount of grants for the retrofit of backup generators with ratings of more than 125 kilowatt from $20,000 to up to $35,000 with applicants providing at least two or more separate bids.  In cases when the cost exceeds $35,000, staff will seek approval from the Board on a case by case basis.  In addition, this action is also to allocate an additional $250,000 from the Rule 1309.1 Priority Reserve Fund for the retrofit of diesel backup generators owned by schools on a first come first served basis.

RECOMMENDED ACTION:

1. Authorize an increase in funding limit from $20,000 to $35,000 for retrofit of school diesel backup generators above 125 kW.
2. Allocate an additional $250,000 from the Rule 1309.1 Priority Reserve Fund for the retrofit of diesel backup generators owned by schools.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At its April 2, 2004 meeting, the Board adopted Rule 1470 – Requirements for Stationary Diesel-Fueled Internal Combustion and Other Compression Ignition Engines to protect school children from diesel PM emissions from emergency standby engines, by installing PM traps on generators located near a school site. As part of the Board’s resolution adopting Rule 1470, financial assistance is offered to install PM traps on diesel backup generators owned by a school or a school district located on or near school grounds. The Board has periodically approved funds to be used for this objective from the Lower Emission School Bus Fund and the Rule 1309.1 Priority Reserve Fund. The total amount of funds allocated to date is $782,500.

At its October 1, 2004 meeting, the Board approved $305,000 in grants to 11 schools to retrofit 27 diesel backup generators with particulate traps. The funding opportunity was kept open without an expiration date, and future awards would be on a first-come basis. Since October 2004, seven additional schools received funds for up to $226,000 to retro-fit 13 diesel generators. From the original $782,500, a balance of about $251,000 remains in the fund.

Proposal

To accommodate more applications from schools, staff is recommending that the Board approve allocation of an additional $250,000 from the Rule 1309.1 Priority Reserve Fund to help fund the retrofit of diesel backup generators.

Staff is also recommending that Board approve the following actions:

1. Maintain the funding limit of $12,500 for the retrofit of diesel backup generators of sizes up to 125 kW.
2. Increase the funding limit from $20,000 to up to $35,000 to retrofit diesel backup generators of sizes above 125 kW, for applicants providing two or more separate bids.

Benefits to AQMD

The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in Southern California to achieve air quality standards. Schools routinely test, maintain and operate diesel backup generator sets in close proximity to students, teachers and neighbors. Many generator sets are located in heavily populated areas. The successful implementation of the diesel backup generator retrofit program will reduce the exposure of school children and the general public to toxic diesel PM emissions.

Resource Impacts

The total amount of allocation for retrofitting diesel back up generators with PM traps shall not exceed $250,000 in additional funding from the Rule 1309.1 Priority Reserve Fund. There are sufficient funds in the Rule 1309.1 Priority Reserve to cover this additional requested funding.

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