1. 1 San Joaquin Valley Air Pollution Control District Governing Board Meeting Incentive Program Resources December 20, 2007

2. 2 Potential Benefit of Incentives 20152020 % 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 600,000 1.1 million

3. 3 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

4. 4 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.)

5. 5 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

6. 6 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

7. 7 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

8. 8 Funding Prospects

9. 9 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

10. 10 Future Staffing Needs Conditional upon receipt of new funding Program designed to be scalable (temporary staffing) Staffing needs minimized with additional streamlining

11. 11 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

12. 12 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