BOARD MEETING DATE: April 12, 1996

AGENDA NO. 5

Proposal:

Issue Supplemental Requests for Proposals for the Fiscal Year 1995-97 AB 2766 Discretionary Fund Work Program

Synopsis:

The MSRC identified an additional $6 million in AB 2766 Discretionary Program funds which it has decided to utilize in a supplement to the FY 1995-97 Work Program. The supplemental work program would consist of the following five elements:
1) $725,000 for innovative TCM programs, including bicycle transportation, market incentives, and broad-based, land-use training for elected officials;
2) $850,000 to augment the EV Corridor Communities Program;
3) $900,000 for additional research and development projects;
4) $1.8 million for alternative-fueled heavy-duty vehicles, targeting refuse and interstate trucks; and
5) $1.8 million for advanced battery demonstration projects.

Committee:

Mobile Source Air Pollution Reduction Review Committee, March 28, 1996, Approved Unanimously

Recommended Action:

Approve the attached Requests for Proposals and Budget Augmentations for a Supplemental FY 1995-97 AB 2766 Discretionary Fund Work Program

Mayor John Longville
Chair, Mobile Source Air
Pollution Reduction Review Committee

JL:LR:LRB:DAR

Attachment (Down Load self-extracting compressed attachment package for this letter in M.S. Office 4.2. You may need to hold SHIFT key down while chicking on "Attachment")

(a:9697RFPS.doc)

Background

Assembly Bill 2766 provides that 30 percent of an annual $4 vehicle registration fee subvened to the AQMD be placed into an account to be allocated pursuant to a work program developed and adopted by the MSRC and approved by the AQMD Governing Board. It was estimated that approximately $12.5 million, including projected interest to be earned, would be available in the Discretionary Fund in FYs 1995-96 and 1996-97, respectively. To reduce administrative burdens and achieve a greater impact in emissions reduction benefits, the MSRC developed a two-year, $25 million program. On December 7, 1995, the AQMD Governing Board approved this two-year, $25 million program. However, the MSRC has received an unexpected amount of turn-back funds from contractors who were unable to perform projects or who experienced lower project costs. The turn-back funds, coupled with higher interest income than projected, will leave excess monies in the amount of approximately $4 million in the AB 2766 Discretionary Fund. In addition to the $4 million, the MSRC has opted to add $2 million from monies previously set aside in the FY 1995-97 Work Program to fund focused areas. The combined total available is approximately $6 million.

Proposals

To utilize these funds and achieve the maximum emissions reduction benefits, the MSRC's Lessons Learned Subcommittee developed a supplement to the two-year, $25 million FY 1995-97 AB 2766 Discretionary Fund Work Program. This $6 million supplemental would consist of the following five elements:

1. Three transportation control measure RFPs to share $725,000 (with a minimum funding target of at least $125,000 for each) in the following areas:
   • Land-Use Education and Training
     
   • Market Incentives
     
   • Bicycle Transportation

2. A Research and Development RFP with a $900,000 target;

3. An "Alternative Fuels: Heavy-Duty Vehicles" RFP with a $1,800,000 target;

4. An $850,000 augmentation to the ZEV "Quick Charge" Program, specifically amending the monies available for the Corridor Communities Program; and

5. An Advanced Battery Demonstration Program with a $1,800,000 target.

• The Land-Use Education and Training RFP (Attachment 1) provides funding for projects that will inform and educate local jurisdictions and members of the development and financial communities about land-use techniques that can reduce motor vehicle trips and facilitate pedestrian, bicycle and public transit trips. This RFP is intended to encourage cities and counties within the AQMD's jurisdiction to implement land-use strategies resulting in reduced air pollution.
  
• Market Incentives RFP (Attachment 2) provides funding for demonstration projects in the area of market incentives, a major strategy in the 1994 AQMP that will serve as a substitute for traditional indirect source measures.
  
• Bicycle Transportation RFP (Attachment 3) provides funding for demonstration projects which measurably increase bicycle commuting and/or intermodal bicycle commuting within a community or large geographic area.
  
• Research and Development RFP (Attachment 4) provides funding for new innovative research projects in the following areas: 1) development of advanced emission reduction technologies for conventional and alternatively fueled on-road motor vehicle engines; 2) development and evaluation of advanced catalysts for conventional and/or alternative fuel vehicles; and 3) advanced remote sensing technology demonstration and evaluation.
  
• Alternative Fuels: Heavy-Duty Vehicles RFP (Attachment 5) provides funding for the demonstration of ARB-certified or "off-the-shelf" alternative fuel heavy-duty engines, excluding transit and school buses, and specifically targeting refuse trucks, interstate trucking and heavy-duty high mileage vehicles.
  
• An augmentation of $850,000 to the EV Corridor Communities Program, one of three components for the "Quick Charge" Program. This includes a minimum allocation to each of the four counties of $150,000. (An EV Corridor Communities Program RFP was approved by the Board on March 8, 1996.)
  
• The Advanced Battery Demonstration Program will not be submitted to the Board for approval until financial partnerships can be explored with the AQMD's Technology Advancement office and other agencies to achieve the maximum benefit of this program. Until the finalized Program is brought forward, the money would be held in reserve.

A notice announcing the release of these RFPs was recently mailed to over 1,800 interested parties, and assuming approval of the RFPs on April 12, ads will appear in several newspapers throughout the Basin, including major ethnic community newspapers. To assist potential bidders in submitting qualified proposals, a Bidders' Conference will be held on April 23, 1996, in the AQMD's Auditorium, and to provide further assistance, a series of technical workshops will also be held on May 1, and two more on April 9 and May 17 specifically for the ZEV "Quick Charge" Pro-gram. The submittal deadline for these five supplemental RFPs is Tuesday, May 21, 1996, by 5 p.m.

Resource Impacts

The AQMD acts as fiscal administrator to the AB 2766 Program, and money received for the AB 2766 Discretionary Fund Program is recorded in a special revenue fund (Fund #23). Since the monies for these RFPs will be drawn from this special fund, there would be no fiscal impact on the AQMD's operational budget.