BOARD MEETING DATE: February 1, 2008
AGENDA NO. 11

PROPOSAL:

Recognize Revenue and Appropriate Funds to the Statewide Portable Equipment Registration Program (PERP); and Add and Delete Positions

SYNOPSIS:

This action is to add five compliance positions and one clerical position critical to the field implementation of CARB’s Enhanced Portable Equipment Registration Program (PERP). Also, this action is to add one Senior Air Quality Engineer in Engineering and Compliance and delete one vacant Air Quality Engineer II position for RECLAIM Administration. The maximum net annual salary and benefits cost of these actions, based on current top step salaries is approximately $616,819 and the cost of the remainder of
FY 2007-08, including vehicle and laptop computer purchases for new inspectors is approximately $336,517. These costs are to be offset by estimated annual inspection fee revenues of $834,000 based solely on equipment currently in the PERP program inventory.

COMMITTEE:

Administrative, January 11, 2008, Recommended for Approval

RECOMMENDED ACTION:

1. Recognize revenue from CARB in support of the Portable Equipment Registration Program.
2. Appropriate $336,517 from the General Fund, Undesignated Fund Balance, to the following Engineering and Compliance major objects; Salary and Benefits, $177,517; Capital Outlays (for inspector vehicles), $150,000; Services and Supplies, Office Expense (for laptop computers), $9,000.
3. Adopt the recommendations shown in Exhibit A - Recommendation to Add/Delete Positions.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Field Implementation of Enhanced PERP Program

In 1995, the California state legislature directed CARB to establish a program allowing the operation of portable equipment in any air district throughout the state without individual local district permits. The regulation implementing CARB’s Statewide Portable Equipment Registration Program (“PERP,” §§ 2450-2465, Title 13, California Code of Regulations) became effective September 17, 1997.

Joint CAPCOA and industry recommendations led CARB to amend the PERP regulation on June 22, 2006, December 7, 2006, and March 22, 2007. These amendments enhanced enforceability and expanded CARB’s requirements for portable engines and equipment units, creating a more comprehensive and inclusive statewide registration program that now provides for triennial renewal of PERP registrations.

Statewide inspection fees collected and disbursed to AQMD and other local “home districts” responsible for implementing the regulation were increased to offset the cost of additional compliance activities. Expected annual revenues from compliance activities and registration renewals for each type of PERP equipment are shown in the table below:

* Collected by CARB at time of equipment registration and triennial renewal and disbursed to “home district” for field enforcement activities.

These revenues are expected to increase over the next few years as enhanced statewide field implementation, combined with outreach by CARB and home districts, enables inspectors to take appropriate enforcement action upon location of unregistered or unpermitted portable equipment subject to program requirements.

Five additional compliance staff (a Supervising Air Quality Inspector and four Air Quality Inspector IIs) are required to implement field enforcement of the enhanced PERP program, which includes the timely completion of approximately 3,000 (75% retention of 3,800 total equipment inventory) portable equipment inspections each year and the identification of non-permitted, non-registered equipment. In addition, one Senior Office Assistant is needed to restore existing clerical resources reassigned to the PERP program. Revenues generated from this program are expected to fully offset the cost of these compliance activities and will replenish this funding request.

Adjusted Resources for RECLAIM Administration

A Senior Air Quality Engineer is required to supervise audit review activities in the RECLAIM Administration group. Significant engineering resources are being invested in assisting field inspectors in technical facility-specific emissions calculations and in reviewing proposed RECLAIM Trading Credit (RTC) trades. The technical complexity and financial implications of these activities continue to increase, and section supervision is required.

Proposal
This action is to:

• Recognize the revenue from CARB associated with PERP as it is received by the agency;
• Add one Supervising Air Quality Inspector position and four Air Quality Inspector II positions and in Engineering and Compliance to meet agency field implementation commitments made to CARB and the affected industry for the enhanced PERP program by conducting outreach and determining and ensuring ongoing compliance of portable equipment with all applicable regulatory requirements;
• Add one Senior Office Assistant to restore clerical resources reallocated from existing programs to support the implementation of PERP;
• Add one Senior Air Quality Engineer to oversee RECLAIM audit activities; and
• Delete one vacant Air Quality Engineer II to partially offset the cost of adding the Senior Air Quality Engineer.

A request for quotations (RFQ) will be subsequently submitted to the Board to seek bids for five new inspector vehicles.

Resource Impacts

The annual top step salary and benefits cost of proposed staffing changes is approximately $616,819. The FY 2007-08 cost, including start-up costs of $150,000 for inspector vehicles and $9,000 for laptop computers for new PERP compliance positions, is approximately $336,517. While it is anticipated that not all of the positions will initially require top step, all figures were calculated using the highest salary step to demonstrate maximum costs fall below minimum expected program revenue from CARB.

Inspection fees assessed for equipment currently registered in PERP program will generate annual revenues of approximately $834,000 fully offsetting these expected costs.

Attachments

Exhibit A – Recommendations to Add/Delete Positions

Exhibit A

Recommendations to Add/Delete Positions

Approximate FY 2007-08 Impact (Staffing and Equipment): $336,517
Annual Budgetary Impact: $616,819

* FOOTNOTES:

1. Add the class to AQMD’s Classification Plan
2. Amend AQMD’s Salary Resolution to establish the salary of the class
3. Delete the existing class and salary from AQMD’s Classification Plan
4. Allocate position(s) to the recommended class
5. Add position(s) of the recommended class to the designated organizational unit
6. Adopt the class specification as part of AQMD’s Classification Plan