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PROPOSAL:

Issue RFP for Implementation of Low Emission, Alternative Fuel Heavy-Duty Vehicles within Western United States

SYNOPSIS:

According to ARB estimates, heavy-duty vehicles make up only 2% of the overall vehicle fleet in California, yet contribute 30% of NOx and 65% of particulate matter. Heavy-duty trucks and buses are responsible for 20% of the total NOx emissions in the Basin. Low emission, alternative fuel heavy-duty engines have one-half or less the NOx emissions of their diesel counterparts and a fraction of the particulate emissions. This action is to issue an RFP to solicit cost-shared proposals to facilitate the implementation of low emission, alternative fuel, heavy-duty vehicles within the western United States. Total cost to the AQMD will not exceed $100,000.

COMMITTEE:

Technology, July 17, 1998, Recommended for Approval

RECOMMENDED ACTION:

Approve release of attached RFP #9899-04 to facilitate the implementation of low emission, alternative fuel, heavy-duty vehicles within the western United States. Total cost to the AQMD will not exceed $100,000.

Barry Wallerstein, D.Env.
Acting Executive Officer

Background

According to ARB estimates, heavy-duty vehicles make up only 2% of the overall vehicle fleet in California, yet contribute 30% of NOx and 65% of particulate matter. Over 60% of the Basin’s NOx emissions inventory can be attributed to on-road mobile sources. Heavy-duty trucks and buses are responsible for 20% of the total NOx emissions. Low emission, alternative fuel heavy-duty engines produce one-half or less the NOx emissions of their diesel counterparts and a fraction of the particulates.

Since 1996, the AQMD has supported the implementation of the Interstate Clean Transportation Corridor (ICTC), a public-private partnership to link Los Angeles, Las Vegas, Salt Lake City, and Sacramento in a triangle of clean fuel vehicles and infrastructure. These destinations were chosen because of their nonattainment status and their links via national highway systems. Participating agencies have included ARB, CEC, DOE and the AQMD.

The ICTC has been very successful. The program helped stakeholders obtain funding for six natural gas fueling stations, 37 liquefied natural gas (LNG) truck tractors and 160 light-duty compressed natural gas (CNG) vehicles in the designated ICTC areas. The program has initiated efforts to establish additional LNG fueling stations and purchase 30-50 Class 8 LNG truck tractors.

In tandem with this project, the major air quality districts in California, with the consultation of the CEC and ARB, have joined to coordinate and make consistent individual funding programs for heavy-duty vehicle incentives. Finally, a statewide coalition of public agencies, California’s trucking community, manufacturers and environmentalists has set in motion actions to create a statewide program to provide incentives for low emission medium- and heavy-duty vehicles.

Proposal

Although this effort has begun to facilitate the commercial introduction of alternative fuel heavy-duty vehicles in California, there is a need to provide ongoing assistance to the companies attempting to implement these vehicles into their fleets. In addition, there is interest in expanding the corridor concept to include Los Angeles Basin to San Diego, and California to Arizona, New Mexico, and Texas.

Staff proposes to release an RFP to obtain support for fleets implementing low emission, alternative fuel trucks in the Basin and on the major intra- and interstate corridors. Proposers will also be requested to provide a plan to seek the participation of fleets, fuel providers, and other agencies to expand the corridors through San Diego and to Arizona, New Mexico and Texas. The focus of the proposed effort will be on Class 7 and 8 natural gas trucks; because of near-term engine availability and vehicle range for long-haul applications. However, proposers must illustrate their ability to provide information on other alternative fuel options for these and other classes of vehicles. It is expected that proposals will include a team of experts able to advise fleets on both technical and economic issues, and include significant cofunding. ARB and DOE have expressed interest in supporting such a project.

Benefits to AQMD

The proposed project is included in the September 1997 update of the Technology Advancement Plan under Project 97M1-3, "Development and Demonstration of Low Emission, Alternative Fuel Engine Technologies for On-Road Applications." The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in Southern California to achieve air quality standards. Low emission, heavy-duty vehicles used along the most traveled corridors within and into California have the potential of providing meaningful emissions reductions to the Basin. For instance, several grocery companies located in the Basin will be purchasing a combined total of 75 natural gas trucks. Over the typical seven-year life of these trucks, NOx emission reductions of approximately 158 tons will be realized. It is conceivable that during the 18-month duration of the proposed program, an additional 100 trucks can be placed with fleets domiciled in the Basin. At a conservative estimate of 50,000 miles a year per truck, 100 trucks would realize over 200 tons of NOx reductions in the Basin over a seven-year period. Additional benefits would be gained by other alternative fuel trucks traveling into or through the Basin via the corridors.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids will be published in the following publications:

1.	Antelope Valley Press	10.	La Opinion	19.	Precinct Reporter
2.	Black Voice News	11.	La Voz	20.	Rafu Shimpo
3.	Chinese Daily News	12.	Los Angeles Daily News	21.	Riverside Press Enterprise
4.	Eastern Group Publications	13.	Los Angeles Sentinel	22.	San Bernardino Sun
5.	El Chicano	14.	Los Angeles Times	23.	Santa Clarita Signal
6.	Excelsior, The	15.	M/W/DVBE Source	24.	State of California Contracts
7.	Inland Empire Hispanic News	16.	Orange County Register		Register
8.	Inland Valley Daily Bulletin	17.	Palm Springs Desert Sun
9.	Korea Central Daily	18.	Philippine News

Additionally, potential bidders will be notified from the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Copies of the RFP will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

A diverse panel of technically qualified individuals will evaluate the proposals received, in accordance with the scoring criteria described in attached RFP #9899-04.

Resource Impacts

The total amount of AQMD funding for the proposed RFP will not exceed $100,000. The staff anticipates that the proposers will seek additional co-funding and cost-sharing is used as an evaluation criteria as specified in the RFP. Sufficient funds are available in the FY 1998-99 Budget, from revenues received from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code 40448.5 and 40512 and Vehicle Code 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels in both sectors, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

Attachments

RFP #9899-04 - Implementation of Low Emission, Alternative Fuel Heavy-Duty Vehicles within Western United States

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