BOARD MEETING DATE: February 2, 2007
AGENDA NO. 17

Receive Status Report on the California Natural Gas Vehicle Partnership Activities, Approve Expenditures for Activities and Projects During FYs 2006-07 and 2007-08, Execute Contracts, and Recognize Funding from Participating Members of the California Natural Gas Vehicle Partnership

SYNOPSIS:

On April 5, 2002, the Board approved the establishment of a California Natural Gas Vehicle Partnership (CNGVP) Fund and authorized the Executive Officer to approve expenditures for projects selected by the CNGVP up to $50,000 for individual expenditures, total amount not to exceed $200,000.  The participating members pay two-year membership fees to fund program administration, specific projects, and activities to achieve the goals of the CNGVP.  On April 4, 2004, the Board renewed the AQMD's membership and authorized the Executive Officer to approve expenditures in FYs 2003-04, 2004-05 and 2005-06.  A status report on the CNGVP activities is provided.  This action is to: (1) recognize funding from participating members of the CNGVP; (2) transfer $25,000 from the Clean Fuels Fund as AQMD’s contribution; (3) execute contract with Gladstein, Neandross and Associates for an outreach award contract not to exceed $50,000; and (4) authorize the Executive Officer to approve up to $50,000 for individual expenditures selected by the CNGVP in FYs 2006-07 and 2007-08, total amount not to exceed $275,000 for each fiscal year.

COMMITTEE:

Technology, January 27, 2007, Recommended for Approval

RECOMMENDED ACTIONS:

1. Recognize approximately $225,000 in revenue from participating members of the California Natural Gas Vehicle Partnership into the Natural Gas Vehicle Partnership Fund.
2. Authorize the transfer of $25,000 from the Clean Fuels Fund to the Natural Gas Vehicle Partnership Fund as AQMD’s contribution.
3. Authorize the Executive Officer to execute a contract with Gladstein, Neandross and Associates at a cost not to exceed $50,000 to conduct outreach activities for the California Natural Gas Vehicle Partnership.
4. Authorize the Executive Officer to approve expenditures for activities and projects selected by the California Natural Gas Vehicle Partnership for the remainder of  FY 2006-07 (to June 30, 2007) and for FY 2007-08 (July 1, 2007 to June 30, 2008) in budgeted amounts not to exceed $50,000 for individual expenditures as provided in Table 2 (total available funds is anticipated to be about $538,837 consisting of up to $225,000 in expected membership fees plus the current fund balance as outlined in Table 1), from the Natural Gas Vehicle Partnership Fund provided there are sufficient funds available, such projects must be designed to meet the partnership goals as described in this letter.
5. Authorize the transfer of $658.97 from the California Natural Gas Vehicle Partnership fund to reimburse Science and Technology Advancement miscellaneous expense account for meeting expenses incurred with the August and December 2006 Steering Committee meetings.
6. Receive and file the written status report (Attachment 1) on recent activities by the California Natural Gas Vehicle Partnership.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At its February 1, 2002 meeting, the Board approved the work plan for eight Strategic Alliance Initiatives.  The Initiatives were set forth to strengthen and create new partnerships at the local, state, and federal level.  One of these initiatives was the creation of the California Natural Gas Vehicle (NGV) Partnership with the objective of accelerating the development of advanced natural gas vehicle technologies to provide a benchmark for lowering emissions from petroleum based engines and to provide a pathway to future fuel cell use in the next two decades.

Under this initiative, the AQMD has spearheaded the formation of this strategic alliance (comprised of state and federal air quality, transportation and energy agencies, together with vehicle and engine manufacturers, fuel providers, transit and refuse hauler organizations), to facilitate the advancement of NGV technology and deployment.  Under the activities of the Partnership, the AQMD has led the formation of the Partnership’s Steering Committee that meets on a quarterly basis with high-level representation from each participating member.  The Steering Committee has adopted five specific goals as outlined below and has set a specific agenda to achieve its goals during the next ten years.

1. Promote research, development, demonstration, and deployment and commercialization efforts in the advancement of natural gas engine and fueling technology.
    
2. Increase awareness and urge the active participation among local, state, and federal policymakers regarding the use of NGVs and natural gas as a low-emission fuel, and promotion of future advancement in vehicle & fueling technologies to further reduce emissions.
    
3. Promote availability of financial and non-financial incentives and technical assistance for deployment of natural gas vehicles and infrastructure.
4. Encourage the purchase of dedicated NGVs by conducting public outreach for local, state, and federal purchasing programs.
   
5. Establish as its goal the deployment of specific numbers and types of light-, medium-, and heavy-duty natural gas vehicles and infrastructure during the next three, five and ten years.

A status report on the NGV Partnership activities is provided in Attachment 1.  In addition, quarterly reports on Partnership activities will be provided to the Technology Committee. 

Proposal

The Partnership Steering Committee is currently comprised of nine paying and twelve non-paying members (Attachment 2).  Each paying member contributes a two-year membership fee of $25,000 to fund specific projects to achieve the goals of the Partnership.  A special Natural Gas Vehicle Partnership Fund account was approved by the Board to receive the membership fees. 

The Partnership Steering Committee has approved expenditures for activities such as conducting outreach workshops in California, and establishing and operating a website and mailing of an electronic newsletter to achieve the goals of the Partnership in an expedited manner.  Most recently at an August 23, 2006 Partnership Steering Committee meeting, the Committee approved a contract award to Gladstein, Neandross & Associates for purposes of conducting outreach on behalf of the Steering Committee.

In addition, at its April 5, 2002 meeting the Board authorized the Executive Officer to approve individual expenditures up to $50,000 for projects selected by the Partnership during the first year of its activity.  This authorization was extended by the Board at its April 4, 2004 meeting for FY 2003-04, and further extended on September 3, 2004 for FY 2004-05 and 2005-06.  Staff is recommending that the Board extend this authorization for FY 2006-07 and 2007-08 to coincide with the two-year membership term.  This will continue to expedite the project selection and implementation process, and will help the Partnership’s Steering Committee to function effectively.  Projects selected by the Partnership will be limited to those that will meet Partnership goals as outlined above.

Expenditures to-date are provided in Table 1.  Two California Natural Gas Vehicle Partnership Steering Committee meetings were held on August 23, 2006 and December 12, 2006 wherein meals and refreshments were paid from Science and Technology Advancement, Miscellaneous Expense account so that the AQMD’s cafeteria could be reimbursed for its services.  The August 23, 2006 catering expense of $405.66 and the December 12, 2006 catering expense of $253.31 should be reimbursed from the California Natural Gas Vehicle Partnership Fund. 

Table 1.  Calfornia NGV Partnership Expenditures

The proposed FY 2006-07 (July 1, 2006 to June 30, 2007) and FY 2007-08 (July 1, 2007 to June 30, 2008) Budget is outlined in Table 2.  Staff is proposing that no more than $250,000 be allocated for each of the two fiscal years according to the budget proposed in Table 2.  If for some reason there is need to modify the above budget by the Partnership’s Steering Committee during FY 2006-07 or FY 2007-08, the Executive Officer will report back to the Board to seek approval for the modified budget. 

Table 2.  FY 2006-07 & 2007-08 Proposed Budget

Benefits to AQMD

The implementation of this initiative has brought public and private stakeholders together   to assist in the development and deployment of advanced natural gas vehicles and refueling infrastructure expansion.  The Partnership will continue its leadership role over the next five to ten years to work with OEMs, government, and the public towards the advancement of natural gas vehicles in the marketplace.  This will, in turn, increase the natural gas role as a low emission displacement or augmentation to petroleum fuel where economically feasible.

Resource Impact

The current fund balance plus the expected membership fees of $225,000 is sufficient to cover the anticipated expenditures of the Partnership for the next two-years.  The sources of funds are from the Partnership’s membership dues for a two-year period.  The AQMD has provided $25,000 to cover membership dues in the Partnership and has provided in-kind support to administer the Partnership activities.  There are no other fiscal impacts associated with the recommended action.

Attachments (EXE 57kb)

1. Recent Activities of the California Natural Gas Vehicle Partnership
2. California Natural Gas Vehicle Partnership Members List