SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

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Contract No. ML18046 maintain compliance for the full Contract term. CONTRACTCR shall ensure that the provisions of this clause are included in all subcontracts. 16. MOBILE SOURCE EMISSION REDUCTION CREDITS (MSERCs) A. The MSRC has adopted a policy that no MSERCs resulting from AB 2766 Discretionary Funds may be generated and/or sold, B. CONTRACTOR has the opportunity to generate MSERCs as a by-product of the project if a portion of the air quality benefits attributable to the project resulted from funding sources other than AB2766, These MSERCs, which are issued by SCAQMD, are based upon the quantified vehicle miles traveled (VMT) by project vehicles or other activity data as appropriate. Therefore, a portion of prospective MSERCs, generated as a result of AB 2766 Funds, must be retired. The portion of prospective credits funded by the AB 2766 program, and which are subject to retirement, shall be referred to as "AB 2766 MSERCs," C. The determination of AB 2766-1 Is to be prorated based upon the AB 2766 program's contribution to the cost associated with the air quality benefits. In the case where AB 2766 Discretionary Funds are used to pay for the full differential cost of a new alternative fuel vehicle or for the retrofitting or repowering of an existing vehicle, all MSERCs attributable to AB 2766 Discretionary Funds must be retired. The determination of AB 2766-MSERCs for infrastructure and other ancillary items is to be prorated based upon the AB 2766 program's contribution to the associated air quality benefits. Determination of the project's overall cost will be on a case-by-case basis at the time an MSERC application is submitted SCAQMD staff, at the time an MSERC application is submitted, will calculate total MSERCs and retire the AB 2766-MS;ERCs:._CONTRACTOR would then receive the balance of the MSERCs not associated with AB 2766 fundIng.::./,, 17. NOTICES All notices that are required under this Contract shall be provided in the manner set forth herein, unless specified otherwise. Notice to a party shall b@ ftlyered ia,.the attention of the person listed below, or to such other person or persons as may hereafter be deslgnated by that party in writing. Notice shall be in writing sent by email, VS. Mail, express, certified, return receipt requested, or a nationally recognized overnight courier service, In the case of email communications, valid notice shall be deemed to have been delivered upon sending, provided the sender obtained an electronic confirmation of delivery, Email communications shall be deemed to have been received on the date of such transmission, provided such date was a business day (Tuesday -Friday) and delivered prior to 5:30pm Pacific Standard Time. Otherwise, receipt of email communications shall be deemed to have occurred on the following business day, In the case of U,S. Mail notice, notice shall be deemed to be received when delivered or five (5) business days after deposit in the U. S. Mail, In the case of a nationally recognized overnight courier service, notice shall be deemed received when delivered (written receipt of delivery). SCAQMD; South Coast Air Quality Management District 21865 Copley Drive Diamond Bar, CA 91765-4178 Attn: Cynthia Ravenstein, MSRC Contracts Administrator, email: cravenstein@aamd gov CONTRACTOR: City of Santa Ana 20 Civic Center Plaza, M-11 Santa Ana, CA 92701