Air Pollution Control Board Agenda Item

APCB1. SUBJECT:   ELECTRIC LAWNMOWER INCENTIVE PROGRAM - MOWING DOWN POLLUTION
 (Supv. Dist:  All)

OVERVIEW:
On July 11, 2000 (APCB #1), your Board approved a one-time event (Mowing Down Pollution) providing an incentive (voucher) for San Diego County residents to purchase a new, rechargeable, electric lawnmower at a reduced price when they turn in a high-polluting, working gasoline mower.  The Board requested a report back on the status of that event and directed the Air Pollution Control Officer to return with a feasibility analysis of establishing an annual program to aid consumers in purchasing electric lawnmowers instead of gas mowers.

Status of Mowing Down Pollution Event
The first incentive program was a big success.  By 9:00 a.m. on July 29th, 500 vouchers were distributed to customers wanting to exchange gasoline mowers for new rechargeable electric mowers.  By noon, 495 vouchers were validated and 495 gas mowers were turned in for scrapping.  To validate the voucher, the gas mower had to be started, turned over to event staff, then rendered inoperative.  A validated voucher was worth $210 toward the purchase of Black and Decker’s top model 5.0 hp rechargeable mulching electric mower.  The consumer paid $150 for a $360 mower.  By 2:00 p.m., the 495 validated vouchers were redeemed for new Black and Decker mowers.  During the following two weeks, five remaining mowers were distributed in exchange for gas mowers of persons on a list of parties to be contacted if any of the 500 vouchers were not validated. 

Positive comments were expressed both during the event and later, praising the event itself, the performance of the new electric lawnmowers, and the service provided by staff of the Air Pollution Control District, Black and Decker, and Supervisorial District 4.  An additional 130 people left their name and address, asking to be contacted prior to the next electric lawnmower incentive event. 

Feasibility of an Annual Program
An annual program is feasible and is recommended provided sufficient funding is available and program guidelines (Attachment I) are adopted to maximize customer satisfaction and air pollution reductions. 

Funding
The first electric lawnmower incentive program, Mowing Down Pollution ($111,000), was 77% funded ($86,000) from over-realized FY 99-00 District penalty revenue and 23% ($25,000) from a California Air Resources Board (ARB) violation settlement.  These funding sources cannot be counted on to fund this program annually, and the District has little funding, other than over-realized penalties, that is not restricted to use in specific programs.  Accordingly, adequate funding for an annual program cannot be guaranteed.  It is, therefore, recommended that your Board authorize the District to conduct a lawnmower incentive program in any year when penalty revenues projected at mid-year (January) are sufficient to fund a $100,000-$150,000 program.  

Program Guidelines
Guidelines are needed to insure a consistent, successful, and cost-effective program that maximizes pollution reductions.  The proposed guidelines (Attachment I) incorporate the most successful aspects of the July 2000 event, enhancements suggested by customers and staff, and successful program elements at other Air Districts.  The proposed guidelines include the following:

The annual event will be held in the Spring when more people are purchasing new mowers and supplier’s inventories are high.  Also, funding for the program can be determined based on mid-year revenue projections.

 Use the RFP process to negotiate the best mower selection and price from participating electric lawnmower suppliers.  This year’s event was put together rapidly to take advantage of available District and ARB funding, and only one supplier had sufficient inventory to provide 500 mowers on such short notice.  The sole-source process used resulted in a $20 (5.5%) discount off the retail price of each new mower.  The Sacramento air district was able to negotiate $75 (43%) and $100 (50%) discounts off two models from one manufacturer, resulting a higher number of mowers offered (860) and a lower price to the customer.  The RFP process results in a more cost-effective program, providing more electric mowers for exchange and, thereby, obtaining greater emission reductions.   

Use a “street fair” approach, if RFP responses and negotiations indicate availability.  This type of event offers more than one make or model of lawnmower and allows the customer to select the one best suited for their needs based on features and price. 

Offer only rechargeable (cordless) electric mowers.  Models using extension cords (not rechargeable) are inconvenient and often have less horsepower than rechargeable models, factors which may result in dissatisfied customers.  If customers are not satisfied with the convenience and performance of their new electric mowers, they are likely to return to cheaper, higher-polluting, gasoline mowers, defeating the program’s objective of reducing air pollution.

Gasoline mowers being exchanged must be fully operative.  If a mower is not currently being used, exchanging it for an electric mower provides no emission reductions.  To demonstrate the mower is currently in use or usable it must have a working motor and all the necessary parts attached (wheels, handles, starter ropes).  No more than ten pulls will be permitted to start a mower to establish it is in operating condition.  Staff will not make repairs at the event so that non-operating mowers qualify.  Participants should insure the mower is working before bringing it to the event.

FISCAL IMPACT:
The recommended actions would result in a District cost of $100,000 - $150,000 from a combination of District penalties and funding from other agencies.  Mid-year appropriations are needed for the FY 2000-01 program.  The appropriations will be frozen by the Auditor and Controller and released after mid-year projections to the extent over-realized penalties and funding from other agencies are projected.

In subsequent years, $150,000 will be budgeted for the program in the District’s two-year Operational Plan.  However, funds will not be expended for this program if mid-year projections of over-realized penalty revenue and funding from other agencies is not sufficient to fund at least a $100,000 program.

RECOMMENDATION:
AIR POLLUTION CONTROL OFFICER:
1.         Appropriate $150,000 for the FY 00-01 electric lawnmower incentive program based on over-realized revenue from District penalties. (4 VOTES) 

2.         Authorize the Air Pollution Control District to budget $150,000 annually for this program beginning in FY 01-02.  If sufficient revenue is not projected at mid-year in any given year, the funds will remain unspent.

3.         Approve the proposed program guidelines.

4.         Authorize the Deputy Director, Purchasing and Contracting Division of General Services, in accordance with 398.17.1(a) of the County Administrative Code, to issue an RFP to solicit proposals, and to negotiate and award the contract(s) for electric lawnmowers with one or more electric lawnmower supplier(s) for this program in FY 00-01 and through FY 05-06, and to negotiate and execute amendments to the contracts as required for changes in funding, subject to the approval of the Air Pollution Control Officer.

ACTION:
ON MOTION of Member Slater, seconded by Member Cox, the Members of the Air Pollution Control Board took action as recommended, on Consent.

AYES:  Cox, Jacob, Slater, Roberts, Horn

ABCB2  SUBJECT:  REVISED MEMORANDUM OF UNDERSTANDING WITH SANDAG  FOR ALLOCATING VEHICLE REGISTRATION FEES
                                    (Supv. Dist:  All)

OVERVIEW:
On January 22, 2000, the San Diego Association of Governments (SANDAG) Board of Directors considered the FY 1998-99 proposed Vehicle Registration Allocation Plan (Plan).  There was confusion about SANDAG’s role in the allocation process as written in the 1990 Memorandum of Understanding (MOU) between the Air Pollution Control Board (Board) and SANDAG, which calls for SANDAG’s review and comment after the first hearing on the Plan by your Board.  On March 12, 1999, SANDAG’s Executive Committee met and discussed updating the MOU with Supervisor Slater, then directed their Executive Director to write a letter to the District requesting a meeting to discuss developing a more pragmatic MOU process and eliminating outdated references that can cause confusion.  SANDAG and District staff met several times and developed the attached proposed MOU revision, which was reviewed and approved by SANDAG’s Board of Directors on July 21, 2000. 

1990 MOU
In 1990, the Board and SANDAG entered into a Memorandum of Understanding (MOU) for allocating Vehicle Registration Fees (APCB #3, 7/24/90).  The purpose of the MOU was to define the roles of both agencies in allocating the fees as they pertain to transportation control measures as defined in the California Clean Air Act of 1988.  The proposed MOU revisions primarily change the point in the allocation process when SANDAG’s review and comment period takes place and when the comments are reported to your Board for consideration.  References to legislation and statutes are also updated. 

Current Allocation Process
Biennially, the District issues a request for proposals for projects to be funded by Vehicle Registration Fees.  The projects are subsequently evaluated, ranked according to your Board’s criteria, and a draft allocation plan is prepared.  Under the current MOU, the proposed plan is first distributed to all entities submitting proposals and a workshop is conducted.  The plan is then appropriately revised to reflect workshop comments, and then submitted to your Board for consideration and authorization to forward it to the SANDAG Board of Directors for their consideration and comment.  Your Board frequently revises the proposed plan at this point in the process.  Finally, the proposed plan, with SANDAG’s comments, is then returned to the Board for final approval.

Proposed Revisions
Under the terms of the revised MOU, SANDAG would receive the proposed plan concurrently with its distribution to entities that submitted proposals.  SANDAG will undergo its review and comment process during the current workshop and comment period (approximately two months).  The draft allocation plan, reflecting both the workshop report and SANDAG’s comments, will then be submitted to your Board for consideration and approval.  The advantage of this process is to provide your Board with all the information to make decisions at one hearing, possibly reducing the allocation process by up to three months.  However, the revised process does not give SANDAG members the benefit of knowing your Board’s views prior to making their comments on the proposed allocation.

FISCAL IMPACT:
Approval of the recommendation will have no impact on the District's budget.

RECOMMENDATION:
AIR POLLUTION CONTROL OFFICER:

Approve and authorize the Air Pollution Control Officer to execute the revised Memorandum of Understanding with SANDAG for allocating Vehicle Registration fees.

ACTION:
ON MOTION of Member Slater, seconded by Member Cox, the Members of the Air Pollution Control Board took action as recommended, on Consent.
AYES:  Cox, Jacob, Slater, Roberts, Horn

APCB3SUBJECT:   VEHICLE REGISTRATION FUND ALLOCATION PLAN POSTPONEMENT
 (Supv. Dist:  All)

OVERVIEW:
The proposed Vehicle Registration Fund Allocation Plan (Plan) is presented to your Board for approval biennially (9/26/94, APCB #1).  The current schedule is for your considering the FY 2000/01 Plan in December.  However, recent events at the state level dictate a delay in the process until final guidelines are issued for one existing and two new state funding programs which are expected to impact the projects and funding amounts recommended in the Plan.  These issues may take several months to resolve.

The last approved Plan (3/17/99, APCB #6), allocated approximately $1.2 million for transit buses.  Under the Carl Moyer Program (Moyer) original guidelines, these funds could be used as the District’s required match (50%) for the first two years of Moyer funding.  However, the state Air Resources Board is in the process of revising the guidelines, and it is uncertain which projects and what funding levels will be eligible as matching funds for the next Moyer allocation (2000/01).  Further, state Moyer funding doubled this fiscal year so the District’s potential Moyer allocation is now about $1.7 million per year.  As a result, allocating District funds to projects that ultimately do not meet Moyer matching requirements would jeopardize up to $3.4 million in Moyer funding over the next two years.  Preliminary guidelines have been distributed, but many issues are still under discussion, including recent legislation allowing ARB to ease the current 50% District match required for the increased Moyer funds.   

There are two new funding programs that may also impact how funds are allocated in the Plan.   First is the Lower Emission School Bus Program to provide $30 million statewide for new compressed-natural-gas school buses and $20 million to retrofit existing diesel school buses to reduce toxic particulate matter (PM) emissions.  It is estimated San Diego would receive about $1.8 million this fiscal year.  Nine schools have submitted projects requesting $1.6 million from the Vehicle Registration funds.  Using the new school bus program to fund these non-Moyer-eligible projects would allow Vehicle Registration funds, less any state-required match, to be directed to other Moyer-eligible projects. 

The second new program is the Zero Emission Vehicle (SEV) incentive program, providing $18 million statewide to promote the purchase and use of electric vehicles.  Implementation guidelines are being developed by ARB staff and matching District funds may be required for a local program.  Matching funds could come from existing incentive funds allocated by your Board (12/7/93, APCB #2), or additional funds could be allocated in this year’s Plan.  In either case, a comprehensive evaluation of existing District incentives for alternative-fuel and zero-emission vehicles is appropriate once the ZEV program guidelines are complete.  This evaluation would be conducted and resulting revisions included in the context of the next allocation Plan. 

The uncertainty surrounding these funding programs and the large funds at stake for local projects dictates delaying the next Vehicle Registration Fund Allocation Plan until the impact can be ascertained. 

The District also requests Board approval for the Air Pollution Control Officer to apply for and accept allocations from the three state funding programs, Moyer, School Bus, and ZEV, as soon as they are offered because, based on previous experience, we can expect a very short time period in which to take the necessary action. Postponing the Vehicle Registration Fund Allocation Plan will have no fiscal impact on the District. 

FISCAL IMPACT:
Postponing the Vehicle Registration Fund Allocation Plan will have no fiscal impact on the District. Authorizing the Air Pollution Control Officer to apply for and accept state program funding for local projects will facilitate maximizing potential funding for local projects from these three programs.

RECOMMENDATION:
AIR POLLUTION CONTROL OFFICER:
1.Direct the Air Pollution Control Officer to return with a proposed Vehicle Registration Fund Allocation Plan as soon as practicable after state program guidelines and issues are resolved and local impacts known. 

2.Authorize the Air Pollution Control Officer to apply for and accept state funding offered for local projects from the FY 2000/01 Carl Moyer Program, the Lower Emission School Bus Program, and the Zero Emission Vehicle Incentive Program.

ACTION:
ON MOTION of Member Slater, seconded by Member Cox, the Members of the Air Pollution Control Board took action as recommended, on Consent.
AYES:  Cox, Jacob, Slater, Roberts, Horn

ABCB4SUBJECT:    NOTICED PUBLIC HEARING:
 1999 AIR TOXICS "HOT SPOTS" PROGRAM REPORT
 FOR SAN DIEGO COUNTY
 (Supv. Dist:  All)

OVERVIEW:
The California Air Toxics "Hot Spots" Information and Assessment Act is a state-mandated program enacted in 1987.  The purpose is to evaluate toxic air contaminant emissions, determine what emissions, if any, present public health concerns, notify affected members of the public, and reduce significant risks.  The Air Resources Board (ARB) is responsible for evaluating emissions from mobile, area, and natural sources; the District for evaluating emissions from stationary sources.

Sources in the region currently emit about 12,700 tons of toxic air contaminants annually.  Automobiles and other mobile sources emit 7,500 tons (59%), area sources emit 2,500 tons (20%), and natural sources emit 500 tons (4%).  The remaining 2,200 tons (17%) are released from approximately 200 large industrial facilities and 1600 smaller businesses.  Industrial source emissions have been reduced by approximately 4,000 tons per year (66%) since 1989.

Although it is not appropriate (due to variables such as where and how emissions occur, the toxicity of particular contaminants, and the location of impacted areas) to directly relate reduced industrial emissions and public health risks, the declining trends for industrial toxic air emissions are very encouraging.

The declining industrial emissions trend over the past decade is reflected by declining ambient air concentrations at the El Cajon and Chula Vista monitoring stations.  The monitoring results indicate a 37% reduction in the ambient incremental cancer risk measured at both locations since 1990.  While the overall concentrations of toxic air contaminants common to industrial processes have been steadily declining (37%) over the past decade, concentrations of benzene and 1,3-butadiene from motor vehicle fuel combustion have increased by 76% and 58% respectively at both locations over the past three years.

District Rule 1210 (Toxic Air Contaminant Public Health Risks - Public Notification and Risk Reduction) specifies public notification and health risk reduction criteria.  Facilities with estimated cancer risks above 10 in one million or non-cancer risks above levels recommended by the state Office of Environmental Health Hazard Assessment (OEHHA) must provide direct mail notices to impacted residents, businesses, schools, and other specified locations.  Facilities with estimated cancer risks above 100 in one million or non-cancer risks above levels recommended by OEHHA must develop and implement a plan to reduce risks below these significant risk levels, generally within five years. 

Public health risk assessments have been conducted for 63 facilities (Attachment 1B). Risk assessment results for fifteen sites exceeded the Rule 1210 thresholds.  Three of these businesses ceased operations, five implemented significant changes to reduce risk, and seven sites are currently notifying the public of potential risks on a biennial schedule.

State law requires the District to publish an annual report summarizing program efforts and results.  Attachment II is the 1999 report consisting of Volumes I and II.  Volume I summarizes the program elements, current program status, emission estimates, health risk assessment results, current public notifications status, and conclusions drawn to date.  Volume II is a technical appendix containing industrial source emission data.

Toxic air contaminant concentrations were monitored in the Barrio Logan area from October 1999 through April 2000 indicating ambient concentrations similar to the levels measured in Chula Vista and El Cajon.  Due to the availability of this monitoring data and robust emission inventory data, the Barrio Logan area was selected as the pilot site for a Neighborhood Assessment Program (NAP) being implemented by the state.  The intent of this state program is to produce cumulative health risk assessment guidelines that will assist local decision makers in addressing concerns regarding environmental justice issues.  Final guideline recommendations will be presented to the state Board for consideration by summer 2002.

A public workshop on the 1999 Air Toxics "Hot Spots" Program Report was held on August 16, 2000.  A workshop report is provided.

The Air Pollution Control Board is required to hold a public hearing on the 1999 program report.  If approved, the District will disseminate the report to city councils, local health officials, and other interested persons.  The Board approved the 1998 Air Toxics "Hot Spot" Program Report on December 15, 1999 (Item #1).

FISCAL IMPACT:
Approval of the 1999 report will have no fiscal impact on the District.

RECOMMENDATION:
AIR POLLUTION CONTROL OFFICER:
Consider the 1999 Air Toxics "Hot Spots" Program Report and approve the report for public distribution.

ACTION:
ON MOTION of Member Slater, seconded by Member Cox, the Members of the Air Pollution Control Board closed the Hearing and took action as recommended, on Consent.
AYES:  Cox, Jacob, Slater, Roberts, Horn

APCB5SUBJECT:     CALIFORNIA AIR RESOURCES BOARD AUDIT OF SAN DIEGO AIR POLLUTION CONTROL DISTRICT
                                    (Supv. Dist:  All)

OVERVIEW:
The California Air Resources Board (ARB) conducted a program review of APCD's air pollution control program.  This evaluation was conducted as part of ARB's district evaluation program pursuant to authority granted in Section 41500 of the California Health and Safety Code.

The program evaluation was conducted to provide input on APCD's strengths and weaknesses in important program areas.  The overall goal of the review was to identify ways to improve the APCD's air pollution control program.  This will contribute to air quality improvements and allow expeditious attainment of State and federal ambient air quality standards.  Areas evaluated by ARB include the enforcement program, permitting program, air toxics Hot Spot program, and criteria emission inventory program.  Each of these major programs includes multiple smaller programs which were evaluated by ARB.

FISCAL IMPACT:
None.

RECOMMENDATION:
SUPERVISOR SLATER:
1.     Direct the Chief Administrative Officer to schedule a Board workshop/conference to discuss and develop a plan to implement recommendations provided in the California Air Resources Board Audit, dated July 2000.

2.     Direct the Chief Administrative Officer to return to the Board with the completed San Diego Air Pollution Control District Strategic Plan within nine months after the workshop/conference.

3.     In accordance with Section 15306 of the State CEQA Guidelines, find that this action is exempt from CEQA because it is part of a study leading to an action which a public agency has not yet approved, adopted, or funded.

ACTION:
ON MOTION of Member Cox, seconded by Member Horn, the Members of the Air Pollution Control Board directed the Air Pollution Control Officer to: 1) allow the District’s working groups to continue to meet and to publicize those meetings to get as much community involvement as possible; 2) to schedule widely noticed public workshop(s) in January, 2001, to be held at the County Administration Center, to discuss the recommendations provided in the California Air Resources Board Audit, dated July 2000; and to develop a report and implementation plan; and notify Board members of the date and time of the workshop; 3) docket the report and plan for the San Diego County Air Pollution Control Board meeting of February 14, 2001, at 9:00 a.m., and widely notice this meeting to solicit public input; and 4) in accordance with Section 15306 of the State CEQA Guidelines, find that this action is exempt from CEQA because it is part of a study leading to an action which a public agency has not yet approved, adopted, or funded.
AYES:  Cox, Jacob, Slater, Roberts, Horn

APCB6SUBJECT:     ADMINISTRATIVE ITEM:
                                    APPOINTMENT
                                     (Supv. Dist:  All)

OVERVIEW:
This appointment is in accordance with applicable Board Policy A-74, Citizen Participation in County Boards, Commissions and Committees.

RECOMMENDATION:
SUPERVISOR COX:

Appoint Ruth Vilmarie Rodriguez to the Air Pollution Control District Hearing Board to replace the unexpired term of Allen Jones, for a term to expire October 13, 2001.

ACTION:
ON MOTION of Member Cox, seconded by Member Horn, the Members of the Air Pollution Control Board took action as recommended.
AYES:  Cox, Jacob, Slater, Roberts, Horn

There being no further business, the Board adjourned at 12:03 p.m.

THOMAS J. PASTUSZKA
Clerk of the Air Pollution Control Board
San Diego County Air Pollution
Control District

Notes by:  Egan

NOTE:  This Statement of Proceedings sets forth all actions taken by the San Diego County Air Pollution Control Board on the matters stated, but not necessarily the chronological sequence in which the matters were taken up.