Clean Cities – Coachella Valley Region

July 10, 2013

AB 1318Mitigation Fees Fund Program

Update on Projects

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 fund

approved by the Board June 2011 Designated to fund emissions

reduction projects

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

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)

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)

Project Site

Close Proximity = Six Mile Radial Distance

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

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.

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)

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

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

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

Funding Awards vs. AB 1318 Minimum Funding Requirements

Category Close Proximity EJ Other Total

Minimum Funding $15,195,732.12 $15,195,732.12 ≤$20,260,976.15 $50,652,440.39

Recommended Funding $15,311,336.00 $15,196,169.00 $20,144,935.00 $50,652,440.00

Minimum Funding Met? Yes Yes Yes ---

Note: Does not include interest accrued to date.

Funding SummaryProject Type No. of

Projects$(M) Percent of Total

Solar 7 12.1 23.7

Paving and Dust Control 3 7.1 13.9

Alternative Fuel Infrastructure & Vehicles 6 4.3 8.5School Bus/Infrastructure 4 2.4 4.6

Air Filtration/Weatherization 4 4.7 9.2

Transportation (parkway & synchronization) 2 20.4 40.1

AB 1318 Emission Mitigation ProjectsApproved for Funding

Project # Project Proponent Project Type

Requested Funding Amount ($)

Recommended Award

Statusw/in 6-Mile Vacinity ($) w/in EJ Areas ($)

Award in Other Areas ($)

69 Border Valley Trading LNG/CNG stations $900,000.00 $900,000.00 Contract Language Being Finalized15 Renova Energy Solar $1,572,917.00 $314,584.00 Contract Language Being Finalized33 Riverside County Paving & dust control $5,089,011.00 $4,097,114.00 Awaiting Contractor Signature22 City of Desert Hot Springs CNG vehicles & station upgrade $1,024,641.00 $594,290.00 $430,351.00 Contract Language Being Finalized

63c-1 Desert Sands USD CNG/Propane Buses (5) $3,535,500.00 $650,000.00 Contract Executed41a-2 Coachella Valley USD CNG Buses (7) $12,994,700.00 $1,235,500.00 Contract Executed

41c Coachella Valley USDAir filtration at schools Mecca and Saul Martinez elementary schools $337,200.00 $337,200.00 Contract Language Being Finalized

41b Coachella Valley USD CNG Fueling Facility $1,618,400.00 $300,000.00 Contract Language Being Finalized35 Sun Power Solar at College of the Desert $2,000,000.00 $2,000,000.00 Awaiting Contractor Signature57c City of Coachella CNG station/solar carport $2,120,000.00 $1,895,000.00 Contract Language Being Finalized

63c-2 Desert Sands USD

CNG station upgrade and school bus replacements (only CNG station upgrade recommended) $3,889,250.00 $174,250.00 Contract Language Being Finalized

24a City of Palm Springs

Solar Visitor Center, train station, fire station and Unity Center buildings $1,175,225.00 $1,175,225.00 Contract Language Being Finalized

14 CVAG Parkway 1e11 (main trunk) $38,000,000.00 $17,400,000.00 Contract Language Being Finalized

61a IQ Air Air Filtration for schools in EJ area $13,698,732.00 $921,235.00 Contract Language Being Finalized

5 Angel View CNG vehicles (5) $270,817.50 $270,817.50 Awaiting Contractor Signature

20Torres Martinez Desert Cahuilla Indians Paving & dust control $999,989.00 $999,989.00 Awaiting Contractor Signature

74 Sun Wize Solar at Boys and Girls Clubs $1,232,696.00 $785,881.00 Contract Language Being Finalized

57a City of Coachella Signal synchronization $3,000,000.00 $3,000,000.00 Approved by CC, Awaiting Signature47 Palm Springs USD Solar project at high school $13,168,818.00 $3,000,000.00 Partial Funding, Revising Designed38 Quality Interiors Weatherization $7,950,000.00 $1,554,164.00 $800,000.00 Contract Language Being Finalized18 Summit Insulation Weatherization $4,196,151.00 $1,054,164.00 Contract Language Being Finalized46 City of Desert Hot Springs Dust control $2,000,000.00 $2,000,000.00 Awaiting Contractor Signature

13bSt. Elizabeth's of Hungary Food Pantry CNG Vehicles $53,995.00 $53,995.00 SOW Under Review by Contractor

45 City of Desert Hot Springs Solar $1,484,329.00 $1,484,329.00 Contract Language Being Finalized62 Mission Springs Water District 3 MW solar project $9,800,000.00 $3,330,546.00 Contract Language Being Finalized

36a FIND Food Bank Gas to Gas replacement $164,623.00 $164,623.00 Contract Language Being Finalized

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