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Clean Cities – Coachella Valley Region

AB 1318 Mitigation Fees Fund Program Update on Projects. Clean Cities – Coachella Valley Region. July 10, 2013. Background. CA Assembly Bill 1318 (V.M. Perez) Facilitated transfer of emission offsets from the SCAQMD to CPV Sentinel power plant project

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Clean Cities – Coachella Valley Region

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  1. AB 1318 Mitigation Fees Fund Program Update on Projects Clean Cities – Coachella Valley Region July 10, 2013

  2. Background • CA Assembly Bill 1318 (V.M. Perez) • Facilitated transfer of emission offsets from the SCAQMD to CPV Sentinel power plant project • Approximately $53 million transferred to the SCAQMD • Placed in a mitigation fees fundapproved by the Board June 2011 • Designated to fund emissionsreduction projects

  3. Emissions Mitigation Funds Use • AB 1318 specifies use of mitigation fees for emission reduction purposes • At least 30% “within close proximity” to the power plant project, which the SCAQMD Governing Board has determined to be the radial distance of 6 miles • At least 30% in EJ Areas under SCAQMD jurisdiction • Remaining 40% can be used anywhere in the SCAQMD jurisdiction

  4. RFP Development • January 2012 • In conjunction with development of an RFP for expending the funds, staff held two public consultation meetings in the Coachella Valley • February 2012 • Determined that all funds are to be used in the Coachella Valley, that is the area that is both within SCAQMD jurisdiction and the Salton Sea Air Basin • Defined “close proximity” and EJ areas • Authorized the release of the RFP (issued February 9, 2012) • Proposal submittal period extended from normal 60 days to 120 days (deadline - no later than 5:00 p.m. on June 8, 2012)

  5. Environmental Justice Area Definition per AB 1318 • Refers to SCAQMD Rule 1309.1 – Priority Reserve (adopted August 2007) • Areas where at least 10% of the population is below the poverty level (2000 Census); AND • Disproportionate impacts from fine particulate (PM10) exposure (> 46 µg/m3)

  6. Close Proximity = Six Mile Radial Distance Project Site

  7. Available Funding • Available funding for project is based on the Mitigation Fees Fund Deposit of $53,318,358.30, less 5% for administration • Therefore, minimum 30% funding for close proximity and EJ Areas = $15,195,732.12 • Interest earned from the fund will be used to fund additional projects under the program as approved

  8. RFP Process • Year long process • Extensive Public Outreach • 2 Bidders Workshops (one in Palm Desert) • Noticing in inland newspapers in both English and Spanish print versions • Additional Newspaper Noticing newspapers specific to the desert communities (1/4 advertisements in English & Spanish) • 4 two-day “office hour” sessions held throughout valley region • 7 technical staff available for ~50 hours each • Special web page created with video (English & Spanish), FAQ, checklist, etc.

  9. Summary ofMitigation Projects Submitted • 75 proposals received containing >$375M in projects submitted, including: • ~$173M in close proximity (6-miles) to the power plant • ~$190M in EJ areas • Submittals generally fell into the following categories: • Solar: ~$132M • Alternative fueled vehicles and infrastructure: ~$41M • Air Filtration: ~$22.5M • Paving: ~$27M • Gardening: ~$12.5M • Weatherizing buildings and homes: ~$20.5M • Other: ~$121M (e.g., congestion relief & alternative energy)

  10. Panel Recommendations Regarding Evaluations • Award 5 additional points to local governments and schools, as was done for local businesses doing at least 90% business in the SCAQMD jurisdiction • Set a minimum technical score of 70 points for funding consideration • Several proposals have multiple projects or layers therefore partial funding of some was awarded

  11. Governing Board Process • Held two meetings of the Administrative Committee • October 18, 2012 in Coachella Valley • December 14, 2012 in Diamond Bar • Combined ~9 hours of testimony by more than 100 individuals • Resulted in numerous action items resulting in modified staff recommendations resulted in >$11 million being reallocated and funding 9 additional projects • Greater consideration for non-profits • Remove grid scale projects from consideration • Forwarded for full Board consideration on January 4, 2013

  12. January 4, 2013 Governing Board Actions • Approved updated funding proposal as directed by Administrative Committee • If contracts are not executed, move to the back-up list, ensuring AB 1318 minimums are met • Utilize interest earned to fund projects, consistent with AB 1318 Requirements • Update Administrative Committee semi-annually, or more frequently if needed • Three-year cumulative report to the Governing Board

  13. Funding Awards vs. AB 1318 Minimum Funding Requirements Note: Does not include interest accrued to date.

  14. Funding Summary

  15. Overall Status as of July 5, 2013 • 2 contracts executed • 5 awaiting contractor signature • 17 contract language being finalized • 1 partial funding requiring revised design • 1 SOW in progress * All contracts expected to be executed by September 2013

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