PROPOSAL:

Execute Contracts for AQIP for First Quarter of 1997

SYNOPSIS:

Rule 2202 - On-Road Motor Vehicle Mitigation Options was adopted 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 which result in equivalent emission reductions that would otherwise have been achieved by the participating employers. Staff evaluated the proposals received during the first quarter of 1997. This action is to recommend two for funding. The adjusted amount available for this quarter is $904,282.

COMMITTEE:

Mobile Source, June 27, 1997, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute contracts for a total amount not to exceed $857,393.60 from the AQIP Special Revenue Fund to obtain mobile source emission reductions with: Ecology Auto Wrecking for an amount not to exceed $453,093.60; and Pick Your Part Auto Wrecking for an amount not to exceed $404,300.

James M. Lents, Ph.D.
Executive Officer

Background

The Rule 2202 AQIP allows all subject 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 triennially per employee. 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 1997.

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 which could potentially result in greater overall emission reductions.

The first quarter of 1997 submittal period ended on March 31, 1997 with 33 employers participating in the AQIP program. The total AQIP funds received during this period was $414,319 (see Attachment 1, Table 1). This amount includes both annual and triennial participants. In addition, $243,924 is being carried forward from the previous quarters and $246,039 is available from the accrued interest. Therefore, the total amount available for this quarter is $904,282. Staff recommends that $857,393.60 be used to purchase emission reductions to satisfy the one-year and the three-year requirements.

Proposal Evaluation

During the first quarter of 1997, five proposals were received requesting funds ranging from $215,100 to $453,093.60. The project proposals received can be grouped in two categories: old-vehicle scrapping, and alternative fuel vehicle deployment. Attachment 2 gives a summary of the emission reduction targets and emission reduction credit balance. Attachment 3 gives a summary of each proposal received and funds requested. Attachment 4 provides an overall summary of the proposals by type. It lists the proposals received, funds requested, total proposal costs, and emission reductions expected for each proposal.

All proposals submitted were 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 six AQMD staff as follows: four from Transportation Programs, one from Planning, and one representative from the Technology Advancement Office. Two panel members are Hispanic, three are Caucasian, and one is Asian-Indian. Three panel members are male, and three are female. Attachment 5 discusses the selection criteria, the scoring process, and the overall ratings for each proposal.

The following proposals are recommended for approval:

1. Ecology Auto Wrecking $453,093.60

Ecology Auto Wrecking proposes to generate MSERCs through an old-vehicle scrapping program and will provide triennial credits. Based on the information provided, the proposal is estimated to have a cost effectiveness of $1.42 per pound.

2. Pick Your Part Auto Wrecking $404,300

This project will generate MSERCs through an old-vehicle scrapping program and provide triennial credits. Based on information provided, the proposal is estimated to have a cost effectiveness of $1.38 per pound.

For the first quarter of 1997, the total recommended funding amount is $857,393.60 (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 first quarter of 1997 will be met by the recommended proposals and provide a surplus for future use. Staff believes that this approach represents the most prudent action at this time relative to State Implementation Plan emission reduction commitments given potential effects of SB836 and on-going discussions with U.S. EPA regarding emission quantification protocols.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications: The Black Voice News, Chinese Daily News, Eastern Group Publications, El Chicano, The Excelsior, Inland Empire Hispanic News, Inland Valley Daily Bulletin, Korea Central Daily, La Opinion, La Voz, Los Angeles Sentinel, Los Angeles Times, M/W/DVBE Source, Orange County Register, Philippine News, Precinct Reporter, Rafu Shimpo, Riverside Press Enterprise, the San Bernardino Sun, and the State of California Contracts Register. Additionally, potential bidders were identified through Los Angeles County’s Directory of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Directory of Certified Firms published by the Los Angeles County Metropolitan Transportation Authority; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; the Caltrans electronic bulletin board listing of Disadvantaged and Women Business Enterprises; the AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Copies of the RFP were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and were placed on the Internet at AQMD’s Web site [http://www.aqmd.gov] and on AQMD’s bidder’s 24-hour telephone message line. In addition, public service announcements were sent to local radio, TV, and cable stations.

Proposition 209 Compliance

It is AQMD policy to award additional points or cost benefits for minority-owned, woman-owned, and/or disabled veteran-owned business enterprises. On November 5, 1996 California voters approved Proposition 209 which prohibits discrimination or granting preferential treatment based upon race, ethnicity, color, sex or national origin in the operation of public employment, public education, or public contracting. (Proposition 209 does not address disabled veteran-owned business enterprises.) On December 16, 1996, the Federal District Court issued an order applicable to all government agencies in California prohibiting enforcement of Proposition 209. The December 16, 1996 court order has been reversed by an appellate panel; however, a motion for rehearing has been filed and the stay continues in effect. Therefore, the AQMD’s existing policy remains in effect. Should the status of the law change at any point during the process of issuing an RFP or RFQ or entering into a contract pursuant to a previously issued RFP or RFQ, the AQMD will abide by the law in effect at the time the action is taken and any RFP or RFQ will be deemed modified to comply with existing law and any provisions in conflict with existing law will not be enforced.

Resource Impact

Not Applicable

Attachments

1. AQIP Funding and Proposal Statistics
2. Summary of Emission Reduction Targets and Credit Balances
3. Summary of AQIP Proposals Received
4. Summary of Proposals By Type
5. Summary of Proposal Ratings
6. Recommendation for Funding

ATTACHMENT 1

AQIP - First Quarter 1997

TABLE 1

Funds Received (as of March 31, 1997)

Program	Funding
Annual	$220,977
Triennial	$193,342
Total Fourth Quarter	$414,319

TABLE 2

Annual Participation

County	Worksites	Employees	Contribution
Los Angeles	6	1,306	$78,358
Orange	4	2,117	$127,019
Riverside	0	0	$0
San Bernardino	1	260	$15,600
TOTAL	11	3,683	$220,977

TABLE 3

Triennial Participation

County	Worksites	Employees	Contribution
Los Angeles	14	1,027	$123,277
Orange	5	651	$70,065
Riverside	1	0	$0
San Bernardino	2	0	$0
TOTAL	22	1,678	$193,342

ATTACHMENT 2

AQIP - First Quarter 1997

TABLE 1

Emission Reduction Targets (Adjusted Per SB 836)

(Pounds)

Program	VOC	NOx	CO
1997	25,309	19,064	196,071
1998	7,204	5,432	55,589
1999	6,301	5,064	49,271
TOTAL 3-Year Target	38,814	29,560	300,931

TABLE 2

Emission Reduction Credits Balance (As of March 31, 1997)

(Pounds)

ATTACHMENT 3

SUMMARY

Air Quality Investment Program

Proposals Received - First Quarter 1997

The following proposals were received in response to the AQIP Request for Proposals (RFP) on or before April 4, 1997. The proposals are not listed by classification or rank.

1. Ecology Auto Wrecking $453,093.60

County: All

Ecology Auto Wrecking proposes to generate MSERCs through an old-vehicle scrapping program and provide triennial credits. Based on the information provided, the proposal is estimated to have a cost effectiveness of $1.42 per pound. (Funded: Ranked second among the old-vehicle scrapping proposals.)

2. Pick Your Part Auto Wrecking $404,300

County: All

Pick Your Part Auto Wrecking proposes to generate MSERCs by eliminating pre-1982 vehicles through an old-vehicle scrapping program at a cost effectiveness of $1.38 per pound. (Funded: Obtained the highest score in the review process and the proposal was also the most cost-effective of old-vehicle scrapping proposals.)

3. Anaheim Transportation Network, The Walt Disney Co., Option A $280,360

and the City of Anaheim Option B $280,360

County: Orange

The Anaheim Transportation Network proposes a clean fuel flexible rail feeder system from Orange and Anaheim stadium rail stations to Anaheim resort, downtown and stadium business centers. Four 28-passenger CNG vehicles will meet arriving and departing Metrolink trains. In Option A, the vehicles are equipped with optional lower emission CNG engines and in Option B, the vehicles are equipped with standard CARB-certified standard CNG engines. (Good project; Not Funded: Low cost-effectiveness; Less certainty regarding emission reductions.)

4. Market-Based Solutions, Inc. $365,000

County: All

Market-Based Solutions proposes to generate MSERCs through an old-vehicle scrapping program. This proposal offers all the required emissions for the quarter at the cost effectiveness of $2.09 per pound. (Not funded: Ranked fourth among old-vehicle scrapping proposals.)

5. Eco-Scrap Option 1 $215,100

Option 2 $396,200

County: All

Eco-Scrap proposes to generate MSERCs through an old vehicle scrapping program. Two options have been offered. Option 1 has a cost-effectiveness of $1.83. Option 2 at a cost effectiveness of $2.21 per pound covers the emission reduction requirement of the quarter. (Not funded: These two proposals ranked third and fifth among old-vehicle scrapping proposals.)

ATTACHMENT 4

AQIP - First Quarter 1997

Proposal Summary

(By Type)

ALTERNATIVE FUEL VEHICLES	AQIP Funding Request	Total Program Cost	AQIP Program Period		Emission Reduction Commitments (lbs.)
				VOC		NOx	CO
Anaheim Transportation Network, The Walt Disney Co., and the City of Anaheim - Option A: CNG vehicles built to CARB optional lower emission standards	$280,360	$645,890	Triennial	12,763		4,120	91,095
Anaheim Transportation Network, The Walt Disney Co., and the City of Anaheim - Option B: CNG vehicles built to CARB standard emission specifications	$280,360	$645,890	Triennial	10,901		3,500	53,342

OLD-VEHICLE SCRAPPING	AQIP Funding Request	Total Program Cost	AQIP Program Period		Emission Reduction Commitments (lbs.)
				VOC		NOx	CO
Ecology Auto Wrecking	$453,094	$453,094	Triennial	128,280		63,600	890,400
Pick Your Part Auto Wrecking	$404,300	$404,300	Triennial	114,900		60,645	824,760
Market-Based Solutions	$365,000	$365,000	Triennial	53,354		40,495	566,930
Eco-Scrap - Option 1	$215,100	$215,100	Triennial	45,900		24,315	333,000
Eco-Scrap - Option 2	$396,200	$396,200	Triennial	66,100		42,415	494,000

ATTACHMENT 5

Summary

AQIP - First Quarter 1997

Proposal Ratings

All proposals submitted were reviewed and scored according to the selection criteria in the Board-approved RFP. The RFP selection criteria is an evaluation process consisting of two steps: Step 1 - Technical, and Step 2 - Cost and Other Factors. Proposals scoring a minimum of 70 points for technical criteria are then scored for cost and other factors. Proposals that score below 70 points are not scored any further and would be scored zero for the total score. The resulting total and average scores are summarized in the table below.

PROPOSALS	PROPOSAL TYPE	TOTAL SCORE*	AVG. SCORE
Pick Your Part Auto Wrecking	Old-Vehicle Scrapping	505.5	84.3
Ecology Auto Wrecking	Old-Vehicle Scrapping	489.0	81.5
Market-Based Solutions	Old-Vehicle Scrapping	474.0	79.0
Eco-Scrap - Option 1	Old-Vehicle Scrapping	430.5	71.8
Eco-Scrap - Option 2	Old-Vehicle Scrapping	409.0	68.2
Anaheim Transportation Network, The Walt Disney Company, and the City of Anaheim - Option A	Clean Fuel Flexible Rail Feeder System, Using Optional Lower-Emission CNG Vehicles	292.5	48.8
Anaheim Transportation Network, The Walt Disney Company, and the City of Anaheim - Option B	Clean Fuel Flexible Rail Feeder System, Using Standard CNG Vehicles	275.0	45.8

* Aggregated total score from all six members of the proposal evaluation panel.

ATTACHMENT 6

AQIP - First Quarter 1997

TABLE 1

Proposals Recommended for Funding

Anticipated Emission Reductions

(Pounds/Year)

TABLE 2

Proposals Recommended for Funding

Funding Request

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