BOARD MEETING DATE: November 7, 2008
AGENDA NO. 7

PROPOSAL:

Issue Program Announcement for Agricultural Assistance Portion of Carl Moyer Program Announcement

SYNOPSIS:

This action is to issue a program announcement which is a re-issuance of the Agricultural Assistance portion of the Carl Moyer Program Announcement to provide incentive funding for agricultural internal combustion engines that are required to comply with Rule 1110.2 by January 1, 2010. Total amount of available funds for the program announcement shall not exceed $1 million from the Carl Moyer Program Fund AB 923 Account.

COMMITTEE:

Technology, October 17, 2008, Recommended for Approval

RECOMMENDED ACTIONS:

Approve issuance of Program Announcement #PA2009-04 which is a re-issuance of the Agricultural Assistance Portion of the Carl Moyer Program Announcement #PA2008-06, in the amount of $1 Million from the Carl Moyer Program Fund AB 923 Account, to provide incentive funding for agricultural internal combustion engines subject to Rule 1110.2.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Under AB 923, the Agricultural Assistance Program (AAP) was created and went into effect on January 1, 2005. The purpose of the AAP is to provide funding to agricultural facilities to help them comply with local air district regulations. Unlike other categories under the Carl Moyer Program (CMP), the AAP does not require the emissions reductions to be surplus. Qualified projects are eligible for funding only until the Rule 1110.2 compliance date of January 1, 2010, which makes the re-issuance of the AAP necessary to provide sufficient time for the purchase and installation of equipment by this date.

AQMD’s AAP is intended to help agricultural facilities bring their agricultural engines into compliance with AQMD Rule 1110.2. The AAP was first available to the public on July 8, 2005 when the Board authorized the issuance of a Program Announcement for the CMP, which included the AAP. Since then the AAP has been made available to the public every year through a Program Announcement with the CMP. To date, AQMD has obligated/expended $942,908 in AB 923 funds for the AAP. A total of 17 agricultural diesel engines have been repowered with electric motors and natural gas engines in compliance with Rule 1110.2. At its February 1, 2008 meeting, the Board authorized issuance of a Program Announcement #PA2008-06 for CMP and AAP projects, allocating $500,000 for agricultural assistance projects from AB 923 funds.  After closing of Program Announcement #PA2008-06 on May 2, 2008, and the award of all the eligible projects, there still remains available funds for agricultural assistance projects.

Proposal

Staff recommends the Board’s approval to issue Program Announcement #PA2009-04 which is a re-issuance of the agricultural assistance portion of the Carl Moyer Program under Program Announcement #PA2008-06 as attached, making $1 Million available for these types of projects until the end of CY 2009.

All the proposed projects will be evaluated according to the 2008 CMP guidelines. The cost-effectiveness limit will be $16,000/ton. This reissuance of AQMD’s AAP is intended to help agricultural facilities bring their stationary non-emergency agricultural engines, into compliance with AQMD’s Rule 1110.2 by January 1, 2010. New electric motors and repowers are allowed within the program.

Qualifying projects will be funded on a first-come-first-served basis until May 31, 2009. The Agricultural Assistance Program Announcement is included as Attachment 1.
 

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the program announcement and inviting applications will be published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Notice of the program announcement will be placed on the Internet at AQMD’s Web site (http://www.aqmd.gov where it can be viewed by making menu selections “Inside AQMD”/“Employment and Business Opportunities”/“Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html). Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Additionally, potential applicants may be notified with the assistance of the State and county farm bureaus through public workshops and newsletters.
 

Benefits to AQMD

The AAP is intended to help agricultural facilities bring their agricultural engines into compliance with AQMD Rule 1110.2, which requires stationary agricultural engine emissions to be controlled. The engines and equipment funded under this program announcement will operate many years, providing long-term emissions reductions. The majority of engines are expected to be replaced with electric motors which eliminates the engines’ criteria pollutant emissions and reduces greenhouse gas emissions.
 

Resource Impacts

Sufficient funds are available in the Carl Moyer Program Fund AB 923 Account to fund the issuance of Program Announcement #PA2009-04 which is a re-issuance of the AAP portion of the last Carl Moyer Program Announcement #PA2008-06 in the amount of $1 Million.

Attachment (DOC, 894k)

Program Announcement #PA2009-04