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PROPOSAL:

Execute Contracts for AQIP Proposals Received During Third Quarter of 1997

SYNOPSIS:

Rule 2202 - On-Road Motor Vehicle Mitigation Options was adopted on December 8, 1995. One of the compliance strategies under 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 1997 and this action is to recommend two for funding. The amount available for this quarter is $526,739.

COMMITTEE:

Mobile Source, June 26, 1998, Discussed, Forwarded to the Board without Recommendation

RECOMMENDED ACTION:

Authorize the Chairman to execute two respective contracts for a total amount not to exceed $318,010 from the AQIP Special Revenue Fund to obtain mobile source emission reductions from: Market-Based Solutions for an amount not to exceed $277,290; and Los Angeles Department of Water and Power for an amount not to exceed $40,720.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

The Rule 2202 AQIP allows 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 third 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 third quarter of 1997 submittal period ended on September 30, 1997 with 29 employers participating in the AQIP program. The total AQIP funds received during this period were $356,118, which includes both annual and triennial participants (see Attachment 1). In addition, $170,621 is being carried forward from the previous quarters. Therefore, the total amount available for this quarter is $526,739. Staff recommends that $318,010 be used to purchase emission reductions to satisfy the one-year and the three-year requirements.

Proposal Evaluation

During the third quarter of 1997, eight proposals were received requesting funds ranging from $34,495 to $877,500. The project proposals received can be grouped in four categories: old-vehicle scrapping, alternative fuel vehicle deployment, transportation demand management, and others. Attachment 2 gives a summary of emission reduction targets and the 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, listing the proposals received, funds requested, total proposal costs, and emission reductions expected from 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 consisted of six AQMD employees: four from Transportation Programs; one from Planning and Policy; and one from Technology Advancement. The panel consisted of three females and three males; one Asian Pacific American, three
Caucasian / Anglo American, and two Hispanic American. Attachment 5 discusses the selection criteria, the scoring process, and the overall ratings for each proposal.

The following proposals are recommended for approval:

Market-Based Solutions

$277,290

Market-Based Solutions proposes to generate MSERCs through an old-vehicle scrapping program. The proposal has a cost-effectiveness of $1.59 per pound and meets the entire emission reduction requirement of the quarter. This was selected as providing the best value to the AQMD under the RFP.

Los Angeles Department of Water and Power

$40,720

The Los Angeles Department of Water and Power (DWP) proposes to reduce emissions by deploying ten electric vehicles for use by DWP employees in their commute to work. Cost-sharing commitments by other participants will bring program funding to $218,500 total. This proposal was selected under the provision of the RFP providing for selection of projects offering a diversity of control options and variety of projects.

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:

1. Antelope Valley Press	10. La Opinion	19. Precinct Reporter
2. The 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 gelestinel	22. San Bernardino Sun
5. El Chicano	14. Los Angeles Times	23. Santa Clarita Signal
6. The xcelsior	15. M/W/DVBE Source	24. State of alifornia Contracts Register.
7. Inland Empire Hispanic News	16. Orange County Register
8. Inland Valley Daily Bulletin	17. Palm Springs Desert Sun
9. Korea Central Daily	18. Philippine News

Additionally, potential bidders were identified through Los Angeles County MTA and Caltrans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; 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, "Business and Job Opportunities" icon] and on AQMD’s 24-hour telephone message line for bidders (909) 396-2724.

A Bidders Conference was convened at the AQMD on September 4, 1997 to highlight the requirements of the proposals and to answer questions from the nine prospective bidders in attendance.

Resource Impact
Not applicable.

Attachments

AQIP - Third Quarter 1997:

1. Funding and Participation
   
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

The following proposals were received in response to the AQIP Request for Proposals (RFP) on or before October 3, 1997. The proposals are not listed by classification or rank.

1. Ecology Auto Wrecking		$279,300
		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 $1.63 per pound. (Not Funded: Ranked third among old-vehicle scrapping proposals.)

2. Pick Your Part Auto Wrecking		Option 1$330,580
		Option 2 $400,320
		Option 3 $450,200
		Option 4 $500,060
		Option 5 $550,060
		Option 6 $600,160
		County: All

Pick Your Part Auto Wrecking proposes to generate MSERCs by eliminating pre-1982 vehicles through old-vehicle scrapping. (Not funded: Notice of Violation (NOV) had been issued for non-compliance with Rule 1610 - Old-Vehicle Scrapping.)

3. County of Riverside: Department of Public Social Services		$34,495
		County: Riverside

The County of Riverside Department of Public Social Services proposes to utilize video conferencing equipment to reduce emissions from vehicles that staff drive between their District offices and the Administration office. (Not funded: Insufficient information to verify emissions.)

4. Market-Based Solutions, Inc.		$277,290
		County: All

Market-Based Solutions proposes to generate MSERCs through an old-vehicle scrapping program. This proposal offers all the required emission reductions for the quarter. (Recommended for funding.) This proposal offers a cost-effectiveness of $1.59 per pound.

5. Eco-Scrap		Option 1 $150,345
		Option 2 $184,275
		Option 3 $292,500
		Option 4 $438,750
		Option 5 $585,000
		Option 6 $877,500
		County: All

Eco-Scrap proposes to generate MSERCs through an old-vehicle scrapping program. Six options have been offered. All the options have a cost-effectiveness of $1.60 per pound and Option 3 covers the emission reduction requirement for the quarter. (This proposal was withdrawn by Eco-Scrap.)

6. OceanAir Environmental		$299,200
		County: Los Angeles

OceanAir Environmental proposes to generate Emission Reduction Credits by repowering a pusher tug boat based in the Port of Long Beach with a low-emissions diesel engine. (Initially considered for partial funding: Company indicated that partial funding was not acceptable.)

7. Los Angeles Department of Water and Power		$40,720
		County: Los Angeles

The Los Angeles Department of Water and Power (DWP) proposes to reduce emissions by deploying ten electric vehicles for use by DWP employees in their commute to work. (Recommended for funding.)

8.Traffic Assist		Proposal I $241,320
		Proposal II $372,280
		Proposal III $544,559
		Proposal IV $628,703
		County: All

The proposed project is to utilize the highway sensors of the Intelligent Transportation Systems (ITS) currently in place and operated by Caltrans. The project is to market an automated system that uses real time data, to guide users to pick the least congested route to their destination. This should result in reduced travel and vehicle operation times to generate emission reductions. Each option is based on the targeted level of commutes per day. (Not funded: Emission reductions are not quantifiable.)

All proposals submitted were reviewed and scored according to the selection criteria in the Board-approved RFP. The evaluation process consists 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 [ Aggregated total score from all six members of the proposal evaluation panel. ** As noted above, proposals scoring below 70 points for technical criteria do not proceed to cost evaluation and are scored zero for the total score.]	AVG. SCORE
Market-Based Solutions	Old-Vehicle Scrapping	479.5	79.9
Eco-Scrap - Option 1 [ Proposal withdrawn by Eco-Scrap on January 13, 1998.]	Old-Vehicle Scrapping	471.5	78.6
Option 2	Old-Vehicle Scrapping	471.5	78.6
Option 5	Old-Vehicle Scrapping	471.5	78.6
Option 6	Old-Vehicle Scrapping	471.5	78.6
Option 4	Old-Vehicle Scrapping	470.5	78.4
Option 3	Old-Vehicle Scrapping	469.5	78.3
Ecology Auto Wrecking	Old-Vehicle Scrapping	462.5	77.1
Los Angeles Dept. of Water & Power	Use of 10 Electric Vehicles for Carpooling	316.5	52.8
OceanAir Environmental	Repower Diesel Tug Boat	310.5	51.8
County of Riverside: Department of Public Social Services	Use of Videoconferencing Equipment	**	**
Pick Your Part Auto Wrecking Option 1	Old-Vehicle Scrapping	**	**
Option 2	Old-Vehicle Scrapping	**	**
Option 3	Old-Vehicle Scrapping	**	**
Option 4	Old-Vehicle Scrapping	**	**
Option 5	Old-Vehicle Scrapping	**	**
Option 6	Old-Vehicle Scrapping	**	**
Traffic Assist - Proposal I	Rerouting Clients to Less Congested Streets	**	**
Proposal II	Rerouting Clients to Less Congested Streets	**	**
Proposal III	Rerouting Clients to Less Congested Streets	**	**
Proposal IV	Rerouting Clients to Less Congested Streets	**	**

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