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San Joaquin Valley Air Pollution Control DistrictGoverning Board Meeting

Incentive Program Resources

December 20, 2007

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Potential Benefit of Incentives

2015 2020

% of Valley residents living in attainment without incentives

35% 65%

% of Valley residents living in attainment with incentives

50% 90%

# of beneficially impacted Valley residents

600,0001.1

million

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District Work on Incentive Measures• Supplements strong regulatory program

• Strong legislative advocacy for additional funds

• Local measures to generate funding– DMV, ISR, Developer Mitigation Agreements

• Doubled funds awarded each of last 2 years

• $180 million awarded reducing 85,000 tons

• Customer service and streamlining a priority

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Statewide Recognition of District• Complimentary audits from 3 State agencies

• District program serves as model (best practices)

• Other agencies outsourcing grant funds to District

• Efficient and cost-effective

• High degree of public accountability (reporting, enforceability, etc.)

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Application Processing• Effective program implementation is labor

intensive• Outreach to recruit cost-effective projects• Application evaluation (eligibility, reductions)• Pre- and post project inspections (on-going)• Contract development and execution• Evaluation and processing payment claims• Public accountability reports

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Current Staffing Needs• District has doubled grant awards each of

last 2 years

• Temporary staffing utilized until funding levels certain

• Present workload expected to continue

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Current Staffing Needs (cont.)

• Today’s Recommendation– Convert existing temporary positions to regular– Add supervisory and lead support staff– Add expertise to safeguard confidential information– Add field staff position to verify reductions– Adding net 5 additional positions

• Efficient and streamlined District program will be able to operate within available administrative fees

• No stationary source fees needed

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Funding Prospects

Funding Source Estimated Annual Funding Funding Duration

Existing Sources of Funding DMV Surcharge Fees $10,000,000 On-going Moyer Program $10,000,000 7 Years ISR/DMC $20,000,000 On-going Sub-Total $40,000,000

New Sources of Funding Federal Funding $7,500,000 1 Year Proposition 1B $100,000,000 - $150,000,000 4 Years Great Basin UAPCD $223,000 1 Year LE School Bus $26,000,000 2 Years Measure C School Bus $1,900,000 20 Years Sub-Total $135,623,000 - $185,623,000

Grand Total $175,623,000 - $225,623,000

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Getting the Most from Prop 1B• Today’s recommendations will optimally

position District to receive more funding• $1 billion for air quality mitigation projects• $250 million allocated for 2008• Must have detailed implementation plan• Must demonstrate adequate resources

(including staffing)• Ability to achieve maximum, early

reductions will give competitive advantage

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Future Staffing Needs• Conditional upon receipt of new funding

• Program designed to be scalable (temporary staffing)

• Staffing needs minimized with additional streamlining

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Future Staffing Needs (cont.)

• Today’s Recommendation– Regular staffing only for core programs– Temporary staffing deployed based on workload– Add necessary management support for enhanced

program– Adding 6 regular and 8 temporary positions

• Efficient and streamlined District program will be able to operate within available administrative fees

• No stationary source fees needed

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Staff Recommendations• Amend the District’s Classification and

Compensation Plan for Additional Resources Effective 12/22/07 and 4/1/08, on an as-needed basis, as determined by Executive Director/APCO

• Adopt Budget Resolution increasing 2007-08 District Budget to include staffing and facility resources necessary for incentive programs