BOARD MEETING DATE: September 7, 2007
AGENDA NO. 3

RECOMMENDED ACTIONS:

Authorize the Executive Officer to:

1. Transfer $66,950 from the Air Quality Investment Program (AQIP) Special Revenue Fund to the LADWP Settlement Projects Fund to replace the funds previously transferred for electric lawn mowers within the LADWP’s jurisdiction.
2. Transfer $933,050 from the Clean Fuels Fund to the LADWP Settlement Projects Fund to replace the funds previously transferred for the development and demonstration of two 45-foot natural-gas composite body, hybrid-electric transit buses.
3.  Contingent upon LADWP matching $1.4 million to the same initiative, execute an agreement with the City of Los Angeles to co-fund the Million Trees Initiative to plant one million low VOC emitting trees within the City in an amount not to exceed $1,000,000 from the LADWP Settlement Projects Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Green trees take carbon dioxide (CO₂) from the atmosphere and convert it into storable energy in the presence of sunlight through photosynthesis. During this process, trees also have the capability of intercepting fine particulate matter (PM) and absorbing gaseous pollutants such as ozone (O₃), carbon monoxide (CO), sulfur dioxide (SO₂), and nitrogen dioxide (NO₂) from the atmosphere. The Center for Urban Forest Research (CUFR) reported in a recent study that this amount of removal can be of significant benefit. In addition, tree canopies reduce energy use (e.g., lower outside temperature by about 5ºF and air conditioning costs by as much as 32%), which reduces nitrogen oxides (NOx), SO₂, CO, PM, and VOC emissions from power plants. Encouraged by potential air and water quality, energy, and property value benefits of trees, CUFR is joining efforts with cities and local communities in California to apply, on a broader scale, the lesson learned from this study. In support of this effort, the City of Los Angeles (City), in collaboration with community groups, businesses, and individuals, has initiated a program to plant one million low VOC emitting trees within the City’s boundaries.

The AQMD has also previously funded related research and developed a list of low and mediumVOC emitting trees. The top ten trees, as shown in Attachment A, will be promoted for this program to further enhance the air quality benefits of this program.

Proposal

The proposed project is to plant and provide long-term care for one million new trees planted on public and private land within the City.

The City proposes to join efforts with the United States Department of Agriculture (USDA) Forest Service, Pacific Southwest Research Station, and CUFR to (1) map locations of existing City tree canopies using satellite imagery, (2) identify potential sites for the new trees with emphasis given to schools, under-served communities, transportation corridors, and areas along the LA River, (3) select low VOC emitting trees with maximum sustainability, and (4) quantify the benefits of planting one million trees. Based on information gathered from these efforts, the City, individual volunteers, community groups, organizations, and businesses will strategically plant one million new trees at locations that will yield maximum ecological, societal, and air and water quality benefits. The City will maintain the trees with “other programs that plant and care for the urban forest” [www.milliontreesla.org/mtabout1.htm7/12/2007].

This action is for AQMD to enter into an agreement with the City of Los Angeles to co-fund the Million Trees Initiative to plant one million low VOC emitting trees within the City in an amount not to exceed $1,000,000, contingent upon the Los Angeles Department of Water & Power (LADWP) providing $1,400,000 in direct cash contribution to the initiative.

Benefits to AQMD

Based on the CUFR study, the proposed project could potentially remove significant amounts of CO₂, NOx, CO, SOx, and PM emissions from the atmosphere.

Sole Source Justification

Section VII.C.2 of the Policy for Clean Air Incentive Contracts identifies provisions under which a sole source award is made under C.2.d.: Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interest of the AQMD. This request for a sole source award is made under provision C.2.d(1): projects involving cost sharing by multiple sponsors.

The City continues to secure direct cash and in-kind contributions from public agencies, individual volunteers, community groups, organizations, and businesses.

Resource Impacts

The total cost for the City’s Million Tree Initiative is estimated to be $70,000,000, of which AQMD cost shall not exceed $1,000,000 from the LADWP Settlement Projects Fund. This cost-sharing for the project is summarized in Table 1 below.

Table 1: Cost-Sharing
 

The AQMD funding is contingent upon LADWP providing $1,400,000 in direct cash contribution to the initiative. This funding is the amount originally allocated by the Governing Board on February 16, 2001 and approved by the LADWP Board of Commissioners under Resolution No. 003-264 on May 20, 2003 for the installation and demonstration of an advanced fuel cell plant at the Los Angeles World Airport as part of the $14 million LADWP settlement. The location of the fuel cell is still an unresolved dispute between AQMD and LADWP. The AQMD staff proposes not to proceed with the fuel cell project, and stipulates: (1) that LADWP provide $1,400,000 in new funding to the City Tree Planting Initiative, provided that these monies are unrelated to any previous commitments by LADWP to LA City, and (2) amending the Settlement between AQMD and LADWP relieving LADWP of any liability or further obligation pursuant to the Settlement Agreement, with respect to the fuel cell plant, upon payment of the $1,400,000 to LA City for purposes of tree planting. LADWP Board of Commissioners is scheduled to consider this matter on September 4, 2007.

The $1 million from the AQMD will be from the LADWP Settlement Projects Fund, which were monies originally identified for supporting a hybrid school bus project. This project, however, did not proceed so the funds were redirected to support a hybrid plug-in transit bus project, approved by the Governing Board on January 10, 2003; this action also transferred the $1 million to the Clean Fuels Fund. On May 6, 2005, a portion of this $1 million was used to reimburse $66,950 to the LADWP Settlement Projects Fund. This $66,950 was previously transferred (March 5, 2004) from the LADWP Settlement Projects Fund to the Air Quality Investment Program (AQIP) Special Revenue Fund to buy-down electric mowers for residents within the LADWP jurisdiction. The reimbursement was necessary because AQMD and LADWP were unable to reach an agreement on using LADWP funds for the lawn mower program. The remaining $933,050 was earmarked for supporting the EPRI/DaimlerChrysler Sprinter Van plug-in hybrid electric delivery van project. Again, however, AQMD and LADWP were unable to reach an agreement, so AQMD recommends dedicating the entire $1 million to the City Million Tree Initiative, by transferring $66,950 from AQIP Special Revenue Fund and $933,050 from the Clean Fuels Fund to the LADWP Settlement Projects Fund.

Attachment (EXE 57kb)

1. Interagency Agreement Among Los Angeles Department of Water and Power, Los Angeles Board of Public Works and South Coast Air Quality Management District
2. Species List of Low-VOC and Medium-VOC Trees