BOARD MEETING DATE: July 10, 2009
AGENDA NO. 7
PROPOSAL:
Transfer Funds from Clean Fuels Program Fund and Carl Moyer Program Fund AB 923 Account to FY 2009-10 Budget of Science & Technology Advancement to Support Administrative, Outreach, Education and Other Directly-Related Activities
SYNOPSIS:
The Clean Fuels and Carl Moyer Programs successfully execute hundreds of contracts, totaling over $65 million, every year. Such large programs have ongoing administrative, outreach, education and other directly-related activities which require resources and support. Each fiscal year, staff requests fund transfers to allow support for such activities throughout the year. This action is to transfer $600,000 from the Clean Fuels Program Fund and $300,000 from the Carl Moyer Program Fund AB 923 Account to the FY 2009-10 Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account to support these activities
COMMITTEE:
Technology, June 19, 2009. Less than a quorum was present for the discussion of this item; the Committee members present communicated their concurrence and recommended that this item be forwarded for Board consideration.
RECOMMENDED ACTIONS:
Authorize the transfer of funds identified below to support directly-related activities for each Program:
- $600,000 from the Clean Fuels Program Fund to the FY 2009-10 Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account; and
- $300,000 from the administrative portion of the Carl Moyer Program Fund AB 923 Account to the FY 2009-10 Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Achieving federal and state clean air standards in Southern California will require emission reductions from mobile and stationary sources beyond those available from the use of current technologies. To meet the needs of the AQMP for cleaner fuels and engine control technologies, the AQMD adopted a Clean Fuels Program in 1988 and established the Technology Advancement Office to administer the program. Concurrently, the State Legislature authorized funds for the AQMD’s Clean Fuels Program and subsequently renewed this funding authorization in 1993. On June 8, 1999, SB 98 (Alarcón) extended the Clean Fuels Program funding mechanism for an additional five years, added administrative requirements, and specified the creation of and goals for the Clean Fuels Advisory Group. The Clean Fuels Program was reauthorized in 2008 via SB 1646 (Padilla) extending the program indefinitely and increasing the program administrative allowance from two-and-a-half percent to five percent.
The AQMD Clean Fuels Program is implemented as a public-private partnership in conjunction with private industry, technology developers, academic institutions, research institutions, and government agencies. This public-private partnership has enabled the AQMD to leverage its public funds with outside investment on an average of more than $4 of outside funding to every dollar of AQMD funding. The Clean Fuels Program sponsors the development and demonstration of clean-fuel vehicles and technologies through a contractual process. At any given time, Technology Advancement has about 85 active Clean Fuels Program contracts.
Likewise, achieving federal and state clean air standards in Southern California will require emission reductions from mobile sources beyond those required by rules and regulations. To achieve this goal, the State Legislature authorized availability of continuous funding for the Carl Moyer Program with the passage of SB 1107 and AB 923. The Carl Moyer Program provides incentive funding for the implementation of lower-emitting technologies to reduce emissions from mobile sources. AQMD’s annual share of funds is approximately $34 million from SB 1107 allocated by CARB, and approximately $24 million from AB 923, transferred to AQMD from the DMV on a monthly basis.
The AQMD has been directing revenues from the state-mandated Carl Moyer Program to its established Carl Moyer Program Fund rather than to an account within the AQMD’s General Fund budget. This is done to clearly delineate the Carl Moyer Program revenues, which have statutory constraints imposed on their use from the AQMD’s other revenues and its general budget. Both SB 1107 and AB 923 allow up to five percent of the revenues to be used for administrative and outreach activities for the proper and timely implementation of the program. In order to support these administrative and outreach activities directly related to the Carl Moyer Program, it is necessary to transfer some of the administrative funds from the Carl Moyer Program Fund AB 923 Account to the General Fund. This will allow management flexibility and expediency in addressing program implementation issues related to the Carl Moyer Program.
Proposal
Clean Fuels Program
Beginning in FY 1999-00, revenues from the state-mandated Clean Fuels Program have been directed to the Clean Fuels Fund rather than to an account within the AQMD’s General Fund budget. This was done to clearly delineate the Clean Fuels Program revenues, which have statutory constraints imposed on their use, from the AQMD’s other revenues and its general budget. Periodically, funds are transferred from the Clean Fuels Fund to the General Fund to support AQMD activities directly related to the Clean Fuels Program. The proposed use of those funds is to facilitate support for various activities related to achieving the objectives of the Clean Fuels Program. These activities are expected to include, but not be limited to, the following areas.
Technical Assistance
Technical assistance is needed to provide source testing services and testing and analyses of emissions with and without add-on controls; to include, but not be limited to, particulate matter, air toxics, and other pollutants from new and existing liquid fuels, natural gas, and fuel blends used in alternative fuel motor vehicles.
Expert Consultation
Consultants provide expertise on new and emerging technologies, development of emission control technologies, and analyses of demonstration projects for alternative fuels, fuel cells, hydrogen infrastructure, microturbine technology, hybrid electric vehicles, renewable energy, and particulate control technology. Assignments for these consultants are expected to be short-term and time-sensitive.
Public Outreach & Conference Sponsorship
AQMD is often asked to provide support for technical conferences and other outreach activities related to the Clean Fuels Program and the Technology Advancement Office. These conferences provide opportunities for the AQMD to inform the public, communicate its programs to broad audiences, and receive input from public and private organizations. Public outreach is important for commercialization of new technologies.
Advanced Technology Vehicle Leases
In order to showcase and demonstrate advanced, low-emission technologies, the AQMD often leases such clean vehicles to educate public and private organizations on the benefits of advanced technologies, as well as provide valuable in-use test data to the manufacturers.
Administrative & Other Costs
Funding is also required to support the operation of the Clean Fuels Program. These costs can include, but not limited to postage and public notice advertisements for RFPs, Program Announcements, and other project-related mailings; costs associated with augmentation or modification of previously approved projects; and costs necessary to enhance or expand existing program-related activities.
Carl Moyer Program
In order to maintain the level of support to the Carl Moyer Program, especially with respect to expert consultations and technical assistance, it is necessary to transfer the Carl Moyer Program AB 923 Account funds to the General Fund Budget as early as possible in the new fiscal year. The proposed use of those funds is to facilitate support for various activities related to the implementation of the Carl Moyer Program. These activities are expected to include the following areas.
Public Outreach & Conference Sponsorship
During each funding cycle, the AQMD conducts several equipment-specific and general workshops. AQMD staff participates in conferences, and does extensive outreach activities to enhance public awareness for the Carl Moyer Program. It helps potential applicants to take advantage of funding opportunities in all eligible equipment categories. AQMD also participates in conferences to communicate its incentive funding programs to broad audiences and to inform the public about these opportunities. Public outreach also plays an important role in commercialization of new technologies.
Technical Assistance
Technical assistance is needed for evaluation of different types of mobile source vehicles and equipment to determine their eligibility and the amount of incentive funding that can be provided in compliance with the requirements of the Carl Moyer Program guidelines and the applicable rules and regulations.
Expert Consultation
Consultants provide expertise on availability of new and emerging technologies, and commercialization potential of lower-emitting vehicles and related infrastructure. Assignments for these consultants are expected to be short-term and time-sensitive.
Administrative & Other Costs
Funding is also required to support the operation of the Carl Moyer Program. These costs can include, but not limited to postage and public notice advertisements for RFPs, Program Announcements, and other project-related mailings; as well as costs associated with performing or meeting program objectives.
Resource Impacts
The proposed action is to transfer $600,000 from the Clean Fuels Fund to the FY 2009-10 Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account to support Clean Fuels Program activities. Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.
The proposed action is to transfer $300,000 from the Carl Moyer Program Fund AB 923 Account to the FY 2009-10 Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account to support Carl Moyer Program activities. Sufficient funds are available from the Carl Moyer Program Fund AB 923 Account.