(a) To ensure that emission reductions are obtained as
needed from pollution sources, any moneys deposited in the fund for
use by the program or appropriated to the program shall be segregated
and administered as follows:
(1) Not more than 2.5 percent of the moneys in the fund for use by
the program shall be allocated to program support and outreach costs
incurred by the state board and the commission directly associated
with implementing the program pursuant to this chapter. These funds
shall be allocated to the state board and the commission in
proportion to total program funds administered by the state board and
the commission.
(2) Not more than 2.5 percent of the moneys in the fund for use by
the program shall be allocated to direct program outreach
activities. The state board may use these funds for program outreach
contracts or may allocate outreach funds to participating districts
in proportion to each district's allocation from the program moneys
in the fund. The state board shall report on the use of outreach
funds in their reports to the Legislature pursuant to Section 44295.
(3) The balance shall be deposited in the fund to be expended to
offset added costs of new very low or zero-emission vehicle
technologies, and emission reducing repowers, retrofits, and add-on
equipment for covered vehicles and engines, and other projects
specified in Section 44281.
(b) Moneys in the fund shall be allocated to a district that
submits an eligible application to the state board pursuant to
Section 44287. The state board shall determine the maximum amount of
annual funding from the fund for use by the program that each
district may receive. This determination shall be based on the
population in each district as well as the relative importance of
obtaining covered emission reductions in each district, specifically
through the program.
(c) Not more than 6.25 percent of the moneys allocated pursuant to
this chapter to a district with a population of one million or more
may be used by the district for indirect costs of implementation of
the program, including outreach costs that are subject to the
limitation in paragraph (2) of subdivision (a).
(d) Not more than 12.5 percent of the moneys allocated pursuant to
this chapter to a district with a population of less than one
million may be used by the district for indirect costs of
implementation of the program, including outreach costs that are
subject to the limitation in paragraph (2) of subdivision (a).
Funds shall be allocated to districts, and shall be
subject to administrative terms and conditions as follows:
(a) Available funds shall be distributed to districts taking into
consideration the population of the area, the severity of the air
quality problems experienced by the population, and the historical
allocation of the program funds, except that the south coast district
shall be allocated a percentage of the total funds available to
districts that is proportional to the percentage of the total state
population residing within the jurisdictional boundaries of that
district. For the purposes of this subdivision, population shall be
determined by the state board based on the most recent data provided
by the Department of Finance. The allocation to the south coast
district shall be subtracted from the total funds available to
districts. Each district, except the south coast district, shall be
awarded a minimum allocation of two hundred thousand dollars
($200,000), and the remainder, which shall be known as the
"allocation amount," shall be allocated to all districts as follows:
(1) The state board shall distribute 35 percent of the allocation
amount to the districts in proportion to the percentage of the total
residual state population that resides within each district's
boundaries. For purposes of this paragraph, "total residual state
population" means the total state population, less the total
population that resides within the south coast district.
(2) The state board shall distribute 35 percent of the allocation
amount to the districts in proportion to the severity of the air
quality problems to which each district's population is exposed. The
severity of the exposure shall be calculated as follows:
(A) Each district shall be awarded severity points based on the
district's attainment designation and classification, as most
recently promulgated by the federal Environmental Protection Agency
for the National Ambient Air Quality Standard for ozone averaged over
eight hours, as follows:
(i) A district that is designated attainment for the federal
eight-hour ozone standard shall be awarded one point.
(ii) A district that is designated nonattainment for the federal
eight-hour ozone standard shall be awarded severity points based on
classification. Two points shall be awarded for transitional, basic,
or marginal classifications, three points for moderate
classification, four points for serious classification, five points
for severe classification, six points for severe-17 classification,
and seven points for extreme classification.
(B) Each district shall be awarded severity points based on the
annual diesel particulate emissions in the air basin, as determined
by the state board. One point shall be awarded to the district, in
increments, for each 1,000 tons of diesel particulate emissions. In
making this determination, 0 to 999 tons shall be awarded no points,
1,000 to 1,999 tons shall be awarded one point, 2,000 to 2,999 tons
shall be awarded two points, and so forth. If a district encompasses
more than one air basin, the air basin with the greatest diesel
particulate emissions shall be used to determine the points awarded
to the district. The San Diego County Air Pollution Control District
and the Imperial County Air Pollution Control District shall be
awarded one additional point each to account for annual diesel
particulate emissions transported from Mexico.
(C) The points awarded under subparagraphs (A) and (B), shall be
added together for each district, and the total shall be multiplied
by the population residing within the district boundaries, to yield
the local air quality exposure index.
(D) The local air quality exposure index for each district shall
be summed together to yield a total state exposure index. Funds shall
be allocated under this paragraph to each district in proportion to
its local air quality exposure index divided by the total state
exposure index.
(3) The state board shall distribute 30 percent of the allocation
amount to the districts in proportion to the allocation of funds from
the program moneys in the fund, as follows:
(A) Because each district is awarded a minimum allocation pursuant
to subdivision (a), there shall be no additional minimum allocation
from the program historical allocation funds. The total amount
allocated in this way shall be subtracted from total funding
previously awarded to the district under the program, and the
remainder, which shall be known as directed funds, shall be allocated
pursuant to subparagraph (B).
(B) Each district with a population that is greater than or equal
to 1 percent of the state's population shall receive an additional
allocation based on the population of the district and the district's
relative share of emission reduction commitments in the state
implementation plan to attain the National Ambient Air Quality
Standard for ozone averaged over one hour. This additional allocation
shall be calculated as a percentage share of the directed funds for
each district, derived using a ratio of each district's share amount
to the base amount, which shall be calculated as follows:
(i) The base amount shall be the total program funds allocated by
the state board to the districts in the 2002-03 fiscal year, less the
total of the funds allocated through the minimum allocation to each
district in the 2002-03 fiscal year.
(ii) The share amount shall be the allocation that each district
received in the 2002-03 fiscal year, not including the minimum
allocation. There shall be one share amount for each district.
(iii) The percentage share shall be calculated for each district
by dividing the district's share amount by the base amount, and
multiplying the result by the total directed funds available under
this subparagraph.
(b) Funds shall be distributed as expeditiously as reasonably
practicable, and a report of the distribution shall be made available
to the public.
(c) All funds allocated pursuant to this section shall be
liquidated as provided for in the guidelines adopted pursuant to
Section 44287 by June 30 of the fourth year following the year of
allocation. Funds not liquidated within the four years shall be
returned to the state board within 90 days for future allocation
pursuant to this chapter.