BOARD MEETING DATE: September 10, 1999 AGENDA NO. 16

On June 8, 1999, SB-98 (Alarcón) affecting the Technology Advancement program was chaptered into law. The provisions of that law provide, among other things, for the establishment of an advisory group to make recommendations to the south coast district board regarding the clean-burning fuels program, technology advancement, and pollution reduction and that the advisory group shall make recommendations regarding the most cost-effective projects that advance and implement clean fuels technology and improve public health. The new law also provides that the advisory group shall consist of 13 members with expertise in either clean fuels technology and policy, or public health, or both, and shall be drawn from scientific, academic, entrepreneurial, environmental, and public health communities.

In addition, in January, 1997, the Governing Board adopted Resolution 97-1 to establish six Advisory Groups and their Charters, including the Technology Advancement Advisory Group. The membership of that group, as defined by the Governing Board, is different from that specified in SB-98, and thus this TA Advisory Group is distinguished from the TAO SB-98 Clean Fuels Advisory Group. Internal organizational changes have occurred and should be reflected in the TA Advisory Group Charter, and staff is recommending a change in procedure for appointment of members.

The scope of the mandate for the new TAO SB-98 Clean Fuels Advisory Group encompasses clean fuel technology and policy, and public health, while the existing Technology Advancement Advisory Group's mandate encompasses a broad range of air quality technology in addition to clean fuels. In addition, the new TAO SB-98 Clean Fuels Advisory Group will not be a component of the Advisory Council, as is the TA Advisory Group. Therefore, it is appropriate to establish a separate group. In order to draw on the expertise of clean fuels specialists, however, there may be some membership overlap from time to time that would be both appropriate and desirable.

Some staff resources will be redirected to assist in the operations of the TAO SB-98 Clean Fuels Advisory Group. Costs of this assistance can be absorbed into the currently budgeted resources for Technology Advancement Office.

DECEMBER 8, 1998

An act to amend Sections 40448.5 and 40448.5.1 of the Health and Safety Code, and to repeal, add, and repeal Section 9250.11 of the Vehicle Code, relating to vehicles, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL'S DIGEST

(1) The Lewis-Presley Air Quality Management Act requires the South Coast Air Quality Management District to establish a program to encourage participation in projects to increase the utilization of clean-burning fuels.

This bill would require the south coast district to establish an Office of Technology Advancement to administer the clean-burning fuels program and to establish an advisory group, as specified, to make recommendations regarding the program, technology advancement, and pollution reduction. The bill would also require the south coast district, on or before March 1 of each year, to prepare and submit to the Legislative Analyst and to specified committees of the Legislature, a report that contains specified information regarding the program. By imposing new duties on the south coast district, the bill would impose a state-mandated local program.

(2) Existing law, until August 1, 1999, authorizes the south coast district to impose a $1 fee on the renewal of registration of motor vehicles in the district, to fund the program.

This bill would extend that motor vehicle registration fee authority until January 1, 2005. The bill would make other conforming changes.

(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(4) This bill would declare that it is to take effect immediately as an urgency statute.

40448.5. (a) The south coast district shall establish an Office of Technology Advancement to administer the clean-burning fuels program established pursuant to this section. The program shall encourage projects that increase the utilization of clean-burning fuels that reduce public health hazards from air pollution. The south coast district shall coordinate the program with the state board, the State Energy Resources Conservation and Development Commission, and other appropriate state and federal agencies and private organizations that are conducting activities to promote the use of clean-burning fuels.

(b) After holding at least two public hearings to solicit public comment on a clean-burning fuels program, the south coast district shall annually adopt a program of activities for increasing the use of clean-burning fuels in the transportation and stationary source sectors.

(c) The program shall include an identification of potential funding sources, including, but not limited to, state and federal funds; private-sector funds; revenues from district permit, variance, and emission fees; proceeds from district penalty settlements and judgments; and funds from other sources under the jurisdiction of the south coast district.

(d) In developing its program, the south coast district shall consider promoting projects in the transportation and stationary source sectors utilizing methanol fuel, fuel cells, liquid petroleum gas, natural gas, including compressed natural gas, combination fuels, synthetic fuels, electricity, including electric vehicles, and other clean-burning fuels.

(e) When considering which clean fuels projects to promote, the south coast district shall consider, among other factors, the current and projected economic costs and availability of fuels, the cost-effectiveness of emission reductions associated with clean fuels compared with other pollution control alternatives, the use of new pollution control technologies in conjunction with traditional fuels as an alternative means of reducing emissions, potential effects on public health, ambient air quality, visibility within the region, and other factors determined to be relevant by the south coast district.

(f) When implementing clean fuels projects, the south coast district shall consider limiting the use of clean fuels to specific seasons, time of day, and locations if those limitations are found by the district to further the goals of the program.

(g) The south coast district shall coordinate the clean-burning fuels program with transportation control measures adopted pursuant to paragraph (4) of subdivision (b) of Section 40440 to reduce traffic congestion, air pollution, and motor vehicle fuel consumption.

40448.5.1. (a) Prior to adopting the program specified in subdivision (b) of Section 40448.5 and prior to expending any funds for any research, development, or demonstration program or project relating to vehicles or vehicle fuels, the south coast district shall do both of the following:

(1) Adopt and include in the program a plan describing any proposed expenditure that sets forth the expected costs and qualitative as well as quantitative benefits of the proposed program or project.

(2) Find that the proposed program and projects funded as part of the program will not duplicate any other past or present program or project funded by the state board, the State Energy Resources Conservation and Development Commission, an air quality management district or air pollution control district, a public transit district or authority within the geographic jurisdiction of the south coast district, the San Diego Transit Corporation, the North County Transit District, the Sacramento Regional Transit District, the Alameda-Contra Costa Transit District, the San Francisco Bay Area Rapid Transit District, the Santa Barbara Metropolitan Transit District, the Los Angeles Department of Water and Power, the Sacramento Municipal Utility District, the Pacific Gas and Electric Company, the Southern California Gas Company, the Southern California Edison Company, the San Diego Gas and Electric Company, or the Office of Mobile Sources within the Environmental Protection Agency. This paragraph is not intended to prevent funding for programs or projects jointly funded with another public or private agency where there is no duplication.

(b) (1) The Office of Technology Advancement shall provide notice to interested parties and the public at least 30 days prior to the annual public hearing at which the south coast district board or a committee of the board takes action to approve the clean-burning fuels program.

(2) For the purpose of this subdivision, "interested parties" includes groups involved in research, development, and application of clean fuels technologies; public health and environmental organizations with expertise in air pollution related diseases and alternative energy technologies; relevant media; legislators, members of the county board of supervisors, and members of any city council that represent territory within the south coast district; and any member of the general public who has expressed interest in the program.

(c) (1) The south coast district shall establish an advisory group to make recommendations to the south coast district board regarding the clean-burning fuels program, technology advancement, and pollution reduction. The advisory group shall make recommendations regarding the most cost-effective projects that advance and implement clean fuels technology and improve public health.

(2) The advisory group shall consist of 13 members with expertise in either clean fuels technology and policy or public health, or both. The members shall be appointed from scientific, academic, entrepreneurial, environmental, and public health communities.

(3) The members of the advisory group shall adopt conflict-of-interest guidelines that prohibit a member from advocating an expenditure involving a project in which the member has a professional or an economic interest.

(4) The south coast district shall consult with the advisory group regarding approval of the annual report required by subdivision (d). The results of that consultation shall be provided to the south coast district board prior to its approval of the report.

(d) Notwithstanding Section 7550.5 of the Government Code, on or before March 31 of each year that the clean-burning fuels program is in operation, the south coast district shall prepare and submit to the office of the Legislative Analyst and to the committees of the Legislature responsible for improving air quality a report that, at a minimum, includes all of the following:

(1) A description of the core technologies that the south coast district considers critical to ensure the attainment and maintenance of national and state ambient air quality standards and a description of the efforts made to overcome barriers to commercialization of those technologies.

(2) An analysis of the impact of the south coast district's clean-burning fuels program on the private sector and on research, development, and commercialization efforts by major automobile and energy firms, as determined by the district.

(3) A description of clean-burning fuels projects funded by the south coast district, including a list of recipients, subcontractors, cofunders, and matching state or federal funds, and a description of expected and actual results of each project in advancing and implementing clean fuels technology and improving public health.

(4) The title and purpose of all projects undertaken pursuant to the clean-burning fuels program, the names of the contractors and subcontractors involved in each project, and the amount of money expended for each project.

(5) A summary of the actual progress made toward the goals of the clean-burning fuels program.

(6) Funding priorities identified for the next fiscal year and relevant audit information for previous, current, and future fiscal years covered by the report.

(e) Within 120 days from the date of the conclusion of a program or project subject to subdivision (a) that is funded by the south coast district, the south coast district shall issue a public report that sets forth the actual costs of the program or project, the results achieved and how they compare with expected costs and benefits determined pursuant to paragraph (1) of subdivision (a), and any problems that were encountered by the program or project.

(f) Notwithstanding any other provision of law, the south coast district may recover the costs of implementing this section from the revenues it receives for alternative fuel research, development, and demonstration pursuant to Section 9250.11 of the Vehicle Code.

9250.11. (a) In addition to any other fees specified in this code and the Revenue and Taxation Code, a fee of one dollar ($1) may be imposed by the South Coast Air Quality Management District and shall be paid to the department, upon renewal of registration of any motor vehicle subject to Part 5 (commencing with Section 43000) of Division 26 of the Health and Safety Code and registered in the south coast district, except any vehicle that is expressly exempted under this code from the payment of registration fees.

(b) Prior to imposing fees pursuant to this section, the south coast district board shall approve the imposition of the fees through the adoption of a resolution by both a majority of the district board and a majority of the district board who are elected officials. After deducting all costs incurred pursuant to this section, the department shall distribute the additional fees collected pursuant to subdivision (a) to the south coast district, which shall use the fees to reduce air pollution from motor vehicles through implementation of Sections 40448.5 and 40448.5.1 of the Health and Safety Code.

(c) Any memorandum of understanding reached between the district and a county prior to the imposition of a one dollar ($1) fee by a county shall remain in effect and govern the allocation of the funds generated in that county by that fee.

(d) The South Coast Air Quality Management District shall adopt accounting procedures to ensure that revenues from motor vehicle registration fees are not commingled with other program revenues.

(e) This section shall remain in effect only until January 1, 2005, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2005, deletes or extends that date.

SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.

SEC. 6. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:

In order to help ensure that continuity of the Clean Fuels Program of the South Coast Air Quality Management District is maintained, it is necessary that this act take effect immediately.

	Name and Area of Expertise: A - clean fuels technology and policy B - public health	Summary of Qualifications
1	Todd Campbell Mr. Campbell will be serving on the Technology Advancement Advisory Group as a representative of the Environmental Community. (A)	Todd Campbell is a Policy Associate for the Coalition for Clean Air, a non-profit environmental advocacy group with an extensive background in public health, industrial hygiene, mobile source pollution, clean alternative fuel transportation technology, and air toxicology. He received a Bachelor of Arts degree in Government from Georgetown University and a Master of Environmental Studies degree from Yale University and a Master of Public Policy degree from the University of Southern California. He is a leader for the environmental community statewide in educating and encouraging transit and school bus fleets to procure clean alternative fuel technologies. Mr. Campbell will be serving on the Technology Advancement Advisory Group as a representative of the Environmental Community.
2	Blair A. Folsom, Ph.D. Dr. Folsom will be serving on the Technology Advancement Advisory Group as a representative of the Scientific and Entrepreneurial Community. (A)	Dr. Folsom is a Senior Vice President with Energy and Environmental Research Corporation. He has 24 years experience in research, development, demonstration, and commercial implementation of advanced combustion and emission control technologies. He received his Bachelor of Science in Mechanical Engineering from California State University at Long Beach, and a Masters and Doctorate in Mechanical Engineering from the California Institute of Technology. He has authored and/or presented over 100 technical papers and reports.
3	John R. Froines, Ph.D. Dr. Froines will be serving on the Technology Advancement Advisory Group as a representative of the Academic and Public Health Community. (B)	Dr. Froines is Professor and Director of the UCLA Center for Occupational and Environmental Health of the UCLA School of Public Health. The Center is a multidisciplinary State of California-funded center with a mission to train professionals and scientists in occupational and environmental health, conduct research, and provide community services to improve occupational and environmental health in California. He received a Bachelor of Science degree in Chemistry from the University of California at Berkeley, and a Masters and Doctorate in Physical-Organic Chemistry from Yale University. He serves as Chairman of the Scientific Review Panel of the California Air Resources Board, Director of the UCLA Pollution Prevention Education and Research Center, and is a member of Cal/EPA's Carcinogen Identification Committee.
4	Fritz R. Kalhammer, Ph.D. Dr. Kalhammer will be serving on the Technology Advancement Advisory Group as a representative of the Scientific Community. (A)	Dr. Kalhammer is an independent consultant in energy and process technology, with special expertise in electrical energy storage and conversion. He received a Bachelor of Science and a Masters degree in Physics and a Doctorate in Physical Chemistry from the University of Munich. He serves on the National Research Council Committee to review U.S. Government-Industry research program of the Partnership for the Next Generation of Vehicles.
5	Melanie Marty, Ph.D. Dr. Marty will be serving on the Technology Advancement Advisory Group as a representative of the Public Health Community. (B)	Dr. Marty is Chief of the Air Toxicology and Risk Assessment Unit in the Office of Environmental Health Hazard Assessment (OEHHA) and is responsible for evaluating the toxic potency of chemicals under the Toxic Air Contaminant program. She received a Doctorate in Toxicology and Pharmacology from the University of California, Davis.
6	Jason Mark Mr. Mark will be serving on the Technology Advancement Advisory Group as a representative of the Environmental Community. (A)	Jason Mark is a Senior Transportation Analyst for the Union of Concerned Scientists, researching advanced vehicle technologies and alternative fuels. He received a Bachelors of Science and Engineering degree in Mechanical Engineering from Princeton University and a Masters degree in Energy and Resources from the University of California at Berkeley. Mr. Mark has been a consultant on transportation policy analysis and mobile source modeling, as well as performing research at the National Renewable Energy Laboratory on renewable energy and transportation technologies.
7	Joseph M. Norbeck, Ph.D. Dr. Norbeck will be serving on the Technology Advancement Advisory Group as a representative of the Academic and Scientific Community. (A)	Dr. Norbeck is the Yeager Families Professor of Engineering and Director of the Center for Environmental Research and Technology (CE-CERT). He conducts research in air pollution control technology, alternative fuels, and environmental modeling. He received his Bachelor of Science degree in Chemistry and his Doctorate in Theoretical Chemistry from the University of Nebraska. At Ford Motor Company, he had responsibility for most of the environmental research, including atmospheric chemistry, vehicle emissions research, research on the potential health effects of vehicle and manufacturing emissions, and atmospheric modeling.
8	Vernon P. Roan, Ph.D. Dr. Roan will be serving on the Technology Advancement Advisory Group as a representative of the Scientific and Academic Community. (A)	Dr. Roan is a Professor of Mechanical Engineering and Director of the Center for Advanced Studies in Engineering at the University of Florida. He is a principal investigator for a number of research projects involving alternative fuels, fuel cells, internal combustion engines, gas turbines, and educational programs. He received his Bachelor of Science degree in Aeronautical Engineering and Masters degree in Engineering from the University of Florida, and his Doctorate in Engineering from the University of Illinois. He is a member of the National Research Council PNGV Peer Review Committee and has organized and chaired four national meetings on electric and hybrid vehicles and/or fuel cells.
9	Brian A. Runkel Mr. Runkel will be serving on the Technology Advancement Advisory Group as a representative of the Entrepreneurial Community. (A)	Brian Runkel is founder and Executive Director of the California Environmental Business Council, Inc, a non-profit trade association that promotes and assists California's environmental technology and services industry at the state, national and international levels. He received a Master of Art degree in Public and International Affairs from George Washington University and a J.D. degree from Harvard Law School. He served in Governor Wilson's Administration as Deputy Secretary and Chief of Staff of the California Environmental Protection Agency.
10	Scott Samuelsen, Ph.D. Dr. Samuelsen will be serving on the Technology Advancement Advisory Group as a representative of the Academic and Scientific Community. (A)	Dr. Samuelsen is Professor of Mechanical and Aerospace Engineering at the University of California, Irvine (UCI) with major research interests in combustion processes, spray and atomization processes, complex reacting flows and air resources and air quality. He received his Bachelor of Science, Masters, and Doctorate in Mechanical Engineering from the University of California at Berkeley. His major research areas are gas turbine and spray combustion, coal combustion, hazardous waste incineration, air quality assessment and environmental toxicology. He is Director of UCI's Combustion Center and the National Fuel Cell Research Center.
11	George Sverdrup, Ph.D. Dr. Sverdrup will be serving on the Technology Advancement Advisory Group as a representative of the Scientific Community. (A)	Dr. Sverdrup is Manager for the Fuels Utilization Program at the National Renewable Energy Laboratory and conducts research and development on advanced fuels, engines, emission controls and their effects on air quality and public health. He received his Bachelor of Science, Masters and Doctorate in Mechanical Engineering from the University of Minnesota. He has been the principal investigator of projects studying emissions from mobile and stationary sources as well as the transport and chemical reactions of emissions in the atmosphere.
12	Nicholas E. Vanderborgh, Ph.D. Dr. Vanderborgh will be serving on the Technology Advancement Advisory Group as a representative of the Academic and Scientific Community. (A)	Dr. Vanderborgh is Project Leader of the Fuel Cell Engineering at Los Alamos National Laboratory (LANL). His work has focused on optimization of fuel processing and fuel cell stack hardware, and PEM fuel cell system concepts required for efficient operation. He holds a Ph.D. in Chemistry and before joining Los Alamos he was Professor of Chemistry at the University of New Mexico. At LANL he was Co-Technical Director of the Electrochemical Engine Program, a joint DOE-sponsored endeavor.
13	Michael P. Walsh Mr. Walsh will be serving on the Technology Advancement Advisory Group as a representative of the Scientific Community. (A)	Michael Walsh is a mechanical engineer whose career has focused on motor vehicle pollution control issues at the local, national and international level. He received a Bachelor of Science degree in Mechanical Engineering from Manhattan College, and completed graduate courses in combustion from Princeton University. He has served as Director of motor vehicle pollution control efforts for New York City and the Environmental Protection Agency.

Synopsis of History: In 1990, the AQMD initiated an annual review of the Technology Advancement program by an external panel of technical experts to coordinate and ensure consistency of AQMD activities with related state, federal, and international clean air technology activities.

Advisory Group Mission: To provide an independent review of the Technology Advancement program with the objectives of:

Membership: Approximately 12 technical experts representing industry, academia, state agencies, the scientific community, and environmental interests. Members shall be appointed by the Governing Board's Technology Committee. Appointment of alternates and membership status shall be in accordance with AQMD Resolution 98-1, or such later adopted resolution as may be in effect relating to the Advisory Group membership.

Reporting: The Governing Board’s Technology Committee shall be the Board’s liaison with this Advisory Group. This Advisory Group shall meet at least twice a year for programmatic review and periodically, as needed, to provide project specific review. Written comments and suggestions by the committee are incorporated into future budget and program planning, as well as reassessing current projects.

Compensation: Effective July 1, 1997, the members of this Advisory Group shall be eligible to claim per diem of $100 and reimbursement of mileage and parking expenses, in accordance with District policy, associated with attendance at meetings of this Advisory Group if not otherwise covered by another organization. Members may serve without compensation.

A Resolution of the Governing Board of the South Coast Air Quality Management District (AQMD) establishing the TAO SB-98 Clean Fuels Advisory Group, its charter and composition, and amending the Technology Advancement Advisory Group charter regarding procedures for appointment of members, as set forth in Resolution No. 98-33.

WHEREAS, the Board adopted a Clean Fuels Program in 1988 to expedite the demonstration and commercialization of advanced low-emission and zero-emission technologies and clean fuels; and,

WHEREAS, Health and Safety Code Sections 40404 and 40448.5 require the AQMD to coordinate and manage a clean fuels program to accelerate the utilization of clean-burning fuels within the South Coast Air Basin; and,

WHEREAS, Health and Safety Code Section 40512 and Vehicle Code Section 9250.11 authorize funding for the AQMD Clean Fuels Program; and,

WHEREAS, SB-98 (Alarcon), chaptered into state law on June 8, 1999, extended the funding authority for the Clean Fuels Program and added administrative provisions under Health and Safety Code Section 40448.5.1 regarding an advisory group to make recommendations to the Governing Board regarding the clean-burning fuels program, technology advancement, and pollution reduction, including:

WHEREAS, the Technology Advancement Advisory Group membership, as defined by the Governing Board, is different from that specified in SB-98; and,

WHEREAS, the scope of the mandate for the advisory group specified in SB-98 (Alarcon) encompasses clean fuel technology and policy, and public health, while the existing Technology Advancement Advisory Group's mandate encompasses a broad range of air quality technology in addition to clean fuels; and

NOW, THEREFORE, BE IT RESOLVED, that the Board establish the TAO SB-98 Clean Fuels Advisory Group which shall comply with the provisions of law enacted by SB-98 (Alarcón), to wit: Health & Safety Code §40448.5 and 40448.5.1 and Vehicle Code §9250.11, or any later-enacted revisions, including, but not limited to the TAO SB-98 Clean Fuels Advisory Group adopting conflict-of-interest guidelines prohibiting advocating an expenditure involving a project in which the member has a professional or an economic interest; and,

BE IT FURTHER RESOLVED, that the Board adopt TAO SB-98 Clean Fuels Advisory Group Charter, as set forth in the Attachment 1; and,

BE IT FURTHER RESOLVED, that the Board establish the membership of the TAO SB-98 Clean Fuels Advisory Group as set forth in the Attachment 2; and,

BE IT FURTHER RESOLVED, that the Board amend the Technology Advancement Advisory Group charter regarding procedures for appointment of members and delegate to the Technology Committee the authority to make appointments to the Technology Advancement Advisory Group, as set forth in Attachment 3.

Dated: ___________________		______________________________________
		Clerk of the Board