PROPOSAL:
Execute Contracts for AQIP for the Third 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 that would otherwise have been achieved by the participating employers. Staff evaluated the proposals received during the third quarter of 1996 and this action is to recommend several for funding. The adjusted amount available for this quarter is $965,998.
COMMITTEE:
Administrative, December 20, 1996, Recommended for Approval
RECOMMENDED ACTION:
Authorize the Chairman to execute contracts for a total amount not to exceed $950,000 from the AQIP Special Revenue Fund to obtain mobile source emission reductions with: Market-Based Solutions, Inc. dba Old Vehicle Clearing House for an amount not to exceed $500,000; the City of Santa Monica for an amount not to exceed $350,000; and Antelope Valley Center for Telecommunications for an amount not to exceed $100,000.
James M. Lents, Ph.D.
Executive Office
Background
The Rule 2202 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 third 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 used to fund alternative mobile source emission reduction strategies that reduce mobile source emissions at a more cost-effective rate and could potentially result in greater overall emission reductions.
The third quarter of 1996 submittal period ended on September 27, 1996 with 121 employers participating in the AQIP program. The total AQIP funds received during this period was $1,368,628 (see Attachment 1, Table 1). This amount includes both annual and triennial participants. The Board has directed staff to reimburse, on a prorated basis, employers (with less than 250 employees) who will be exempt from Rule 2202 on January 1, 1997 due to the change in the state law [ Health & Safety Code Sections 40458 and 44243.5 added pursuant to SB 836 which was approved by the State Legislature August 31, 1996 and signed by the Governor on September 27, 1996] . Staff recommends that $402,630 be set aside to reimburse these employers, and that $950,000 be used to purchase emission reductions to satisfy the one year and the three year requirements
The exemption of employers with less than 250 employees and the prorated refunding of their AQIP contributions, will significantly affect the level of AQIP funding available for the remainder of 1996. Specifically, the total amount of the refund, calculated for the third quarter is estimated at $402,630. This refund will reduce the AQIP funding available for the third quarter to $965,998. The net emission reduction commitments as of the end of the third quarter of 1996 are shown in Attachment 2, Table 2. As a result of the emission reduction target adjustment for the current and past quarters, a deficit is shown for the 1996 balance of emission credits in the AQIP.
Proposal Evaluation
During the third quarter of 1996, eleven proposals were received requesting funds ranging from $26,400 to $957,566. The project proposals received can be grouped in five categories: old-vehicle scrapping; alternative vehicle deployment; ridematching software/hardware; remote sensing; and vehicle repair. Attachment 3 gives a summary of each proposal received, and funds requested. Attachment 4 lists the proposals received, funds requested, total proposal costs, and emission reductions expected for 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 evaluation panel was comprised of five members of the AQMD Transportation Programs Staff. Two panel members are Hispanic, two are Caucasian, and one is Asian-Indian. The RFP scoring process consists of two steps. The first step is the technical evaluation 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. On December 16, 1996, the Federal District Court issued an order extending the prohibition against enforcement of Proposition 209 to all government agencies in California. Therefore, the Governing Board’s existing policy regarding MBE/WBE preference points remains in effect. Attachment 5 discusses the selection criteria and summarizes the overall ratings of each proposal.
The following proposals are recommended for approval:
1. Market-Based Solutions$500,000
This project will generate mobile source emission reduction credits (MSERC) through an old-vehicle scrapping program through the purchase of triennial credits. The MSERCs generated will meet the adjusted emission reduction targets established by the level of employer participation in the AQIP.
2. City of Santa Monica$350,000
This project will generate MSERCs through the replacement of the city’s heavy duty fleet vehicles such as refuse trucks, transfer trailer trucks, and street sweepers for a total of 40 vehicles. The project also includes an outreach component and future plans to expand the CNG fueling station for public use.
3. Antelope Valley Center for Telecommunications$100,000
This project will generate MSERCs through the installation of a teleconferencing system between the children’s court in Monterey Park and the satellite court in the city of Lancaster, thereby reducing an estimated 28,000 vehicle trips in 1997, resulting in a total emission reduction of 17,638 pounds for the year.
For the third quarter of 1996, the total recommended funding amount is $950,000 (see Attachment 6, Table 2). 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 third quarter 1996 will be met by the recommended proposals and the excess emission credits from previous quarters’ projects made available due to SB836 (Lewis).
Outreach
The AQIP announcement was mailed to all Rule 2202 employers (approximately 4,500 worksites). The availability of AQIP funds and the RFP were advertised in the Los Angeles Times, Orange County Register, Riverside Press Enterprise, Inland Valley Daily Bulletin, 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, "h/mt Project Information Services," 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, members of the Consultants Roundtable, attendees at AQIP bidders conferences, and any interested party. In addition, a Bidders Conference was held at AQMD headquarters on September 4, 1996.
Resource Impact
Not Applicable
1. AQIP Funding and Proposal Statistics
2. Summary of AQIP Balance and SB 836 Adjustments
3. Summary of AQIP Proposals Received
4. Summary of Proposals By Type
5. Summary of Proposal Ratings
6. Recommendation for Funding