BOARD MEETING DATE: July 14, 1996
AGENDA NO. 5
PROPOSAL:
Execute Contracts for Air Quality Investment Program for the First Quarter
of 1996
SYNOPSIS:
Rule 2202 - On-Road Motor Vehicle Mitigation Options was adopted on
December 8, 1995. As one compliance strategy, Rule 2202 allows employers
to invest in the AQIP. Monies received are placed in a restricted account
to fund programs that result in equivalent emission reductions than would
otherwise have been achieved by the participating employers. Staff evaluated
the proposals received during the first quarter of 1996 and this action
is to recommend several for funding. The amount available for this quarter
is $2,987,004.
COMMITTEE:
Mobile Source, May 17, 1996, less than three members were present and
therefore, pursuant to the Procedures for Standing Committees of the Governing
Board, the Committee provides this communication but no recommendation.
RECOMMENDED ACTION:
Authorize the Chairman to execute contracts for a total amount not to
exceed $2,671,299 from the Air Quality Investment Program Special Revenue
Fund to obtain mobile source emission reductions with: Southeast Community
Development Corporation (SCDC) for an amount not to exceed $176,000; Whittier
Union High School District for an amount not to exceed $540,000; Santa
Barbara Research Center for an amount not to exceed $578,956, and Ecology
Auto Wrecking, Inc. for an amount not to exceed $1,376,343.
James M. Lents, Ph.D.
Executive Office
BW:CLW:LT:CD:ENL
Background
In December 1995 the Governing Board rescinded Rule 1501.1
and adopted Rule 2202 - On-Road Motor Vehicle Mitigation Options. The Rule
2202 Air Quality Investment Program (AQIP) allows all employers to participate
by electing to invest in an AQMD-administered restricted fund. Investment
can be either $60 annually per employee reporting to the worksite during
the 6:00 a.m. to 10:00 a.m. peak window, or $125 per employee triennially.
The restricted monies are to be used by the AQMD to fund proposals that
achieve mobile source emission reductions that would otherwise have been
achieved by implementing a rideshare program. This Board letter contains
a discussion regarding the dispersal of funds from the AQIP compliance
option for the first quarter of 1996.
Upon registering under this option and submitting the
designated investment amount, an employer is considered to be in compliance
with the rule and there is no need for the employer to take further action
to reduce mobile source emissions. The collected monies are to be used
to fund alternative mobile source emission reduction strategies that reduce
mobile source emissions at a more cost-effective rate and that could potentially
result in greater overall emission reductions.
In effect, an employer using the AQIP compliance option
is transferring to the AQMD the responsibility for achieving emission reductions
equivalent to the pooled emission reduction targets of all employers participating
in the fund. The AQMD becomes an intermediary, responsible for funding
projects that will obtain equivalent emission reductions/air quality improvements
through the contract process.
Proposal Evaluation
The first quarter of 1996 submittal period ended on March
29, 1996. The total AQIP funds received during this period was $2,987,004.
This amount includes both annual and triennial participants. The annual
program contributions of $970,504 from 103 worksites will be used to purchase
a single year of emission reductions; participation by county is noted
in Attachment 1, Table 1. The triennial program contributions of $2,016,500
from 88 worksites will be used to purchase three years of emission reductions;
participation by county is noted in Attachment 1, Table 2. In addition,
there is $119,296 carried over from previous quarters. (See Table 3 of
Attachment 1).
During the first quarter fourteen proposals were received
requesting funds ranging from $84,480 to $2,920,000. The proposed projects
received can be grouped in five categories: old-vehicle scrapping; alternative
vehicle deployment/transit improvement; ridematching software/hardware;
remote sensing; and off-road engine technology. Attachment 2 gives a summary
of each proposal received, and funds requested, while Attachment 3 lists
the proposals received, funds requested, total proposal costs, and emission
reductions expected for each proposal. Attachment 4 discusses the selection
criteria and summarizes the overall ratings of each proposal.
All proposals submitted are reviewed and scored based
on the information in the proposal as submitted to the AQMD, and according
to the selection criteria described in the RFP. The RFP scoring process
consists of two steps. The first step is technical in which each proposal
is assigned points based on: the potential of a proposed project to result
in transportation technology and infrastructure improvements; the potential
to achieve emissions reductions relative to the quarterly targets; and
the overall expertise of the firm. In the second step the proposals are
scored according to cost effectiveness, if the firm is a local business
enterprise, and if it is a certified MBE/WBE/DVBE company or joint venture.
The following proposals are recommended for approval:
1. Southeast Community Development Corporation (SCDC) $ 176,000
The proposal is a transit improvement project that includes flexible rail feeder shuttles equipped with intelligent transportation systems. The shuttles will be CNG-fueled and are anticipated to provide services to the surrounding communities and local businesses. The $176,000 funding requested will be leveraged by an additional $1,210,160 to be provided by other participating funding sources.
2. Whittier Union High School District. $ 540,000
The project is to implement a comprehensive alternative fuel vehicle and school bus (CNG) deployment with its partners, that include both public and private entities. The project includes the construction of a public access CNG fueling station that will accommodate all vehicle classes. Whittier Union High School District plans to deploy 30 full-size school buses, 7 vans, and 239 light-duty CNG-powered vehicles as part of the full scale program. In addition, the concept of clean fuel vehicles will be introduced as part of the educational curriculum. Furthermore, the $540,000 funding requested will be leveraged by an additional $9,394,000 to be provided by the project partners. This project will result in substantial short- and long-term NOx emission reductions in addition to the VOC and CO emission reductions anticipated.
3. Santa Barbara Research Center $ 578,956
The proposed project is to implement a remote sensing testing and repair program at local colleges and universities. The proposal includes the testing of 60,000 vehicles, and the repair of approximately 600 of the worst high emitting vehicles. This project will produce significant VOC and CO emission reductions and could greatly contribute to the commercialization of the remote sensing technology as a viable compliance option under Rule 2202.
4. Ecology Auto Wrecking, Inc. $1,376,343
This project will generate mobile source emission reduction
credits (MSERCs) through an old-vehicle scrapping program with the purchase
of triennial credits. The MSERCs generated will be to supplement the anticipated
emission reductions of the above projects to meet the emission reduction
targets established by the level of employer participation in the AQIP.
For the first quarter of 1996, the total recommended funding
amount is $2,671,299 (see Attachment 1, Table 6). These funds will be leveraged
with an additional $10,604,160 of co-funding. Any remaining AQIP funds
would be held for future proposal funding in subsequent quarters. Both
annual and triennial AQIP emission reduction targets for each performance
target zone and for all participants during the first quarter 1996 will
be met by the recommended proposals (see Tables 4 and 5 of Attachment 1).
Outreach
The AQIP announcement was mailed to all Rule 2202 employers
(approximately 5,000 worksites). Furthermore, the availability of AQIP
funds and the RFP was advertised in the Los Angeles Times, Orange County
Register, Riverside Press Enterprise, Los Angeles Sentinel, Eastern Group
Publications, San Bernardino Sun, La Voz, La Opinion, Rafu Shimpo, Precinct
Reporter, The Black Voice News, Chinese Daily News, Korea Central Daily,
El Chicano, The Excelsior, Philippine News, The M/W/DVBE Source, and the
California State Contracts Register. Copies of the AQIP announcement and
the RFP were sent to the Black and Latino Legislative Caucuses and interested
minority contractors/professional associations, transportation management
associations and organizations (TMA/TMO), members of the Consultants Roundtable,
attendees at AQIP bidder's conferences, and any interested party.
Resource Impact
During the first three quarters of the program's existence,
$3,680,920 in AQIP fees have been collected. Of that amount, $204,425 was
authorized by the Board and subsequently was expended. In March of this
year, the Board approved the staff recommendation to expend $402,803 but,
because of concerns about the outcome and potential impact of State Senate
Bill 836 (Lewis), postponed the execution of the associated contracts.
That posture has continued to date as this bill has gone through a number
of amendments. While this bill could still prohibit the AQMD from continuing
the AQIP, it has been amended from the initial version in which it directed
the refund of all AQIP funds collected, to its current version which directs
a refund of only those funds which are unspent. Given this change, and
the need to achieve equivalent emission reductions, staff believes it is
now appropriate to move forward with project funding.
AQIP Funding and Proposal Statistics
Summary of AQIP Proposals Received
Summary of Proposals By Type
Summary of Proposal Ratings
aqipjuly.doc