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REPORT:

Mobile Source Air Pollution Reduction Review

SYNOPSIS:

Below is a summary of key issues addressed at the MSRC’s May 28, 1998 meeting. The next MSRC meeting is Thursday, June 25, 1998, at 1:30 p.m. in AQMD Conference Room CC8.

RECOMMENDED ACTION:

Receive and file this report.

Nell Soto
AQMD Board Representative on MSRC

Approval of Minutes

Minutes from the April 23, 1998, MSRC meeting was unanimously approved, as submitted. The minutes are attached for your information (Attachment 1).

Projects for Second Year Funding of FY 1997-99 AB 2766 Discretionary
Work Program

The MSRC unanimously approved projects for the second year of its FY 1997-99 Work Program. Projects for second year funding include:

• Eight transit bus projects totaling $8,358,750; awarded through the Alternative Fuel Transit Bus Program RFP #9798-15 which provides co-funding to purchase new, low-emission, 35-40 foot alternative fuel transit buses;

• Qualifying two bus vendors with $2,800,000 available for CNG bus purchases at $40,000 per bus; awarded through the CNG School Bus Buydown Program RFP #9798-14

• Seven bicycle projects totaling $315,542; awarded through the Bicycle Projects RFP #9798-19 which provides 50% co-funding for projects promoting bicycling as an alternative mode to driving alone;

• Two videoconferencing projects totaling $814,744; awarded through the
  Videoconferencing Projects RFP #9798-18 which provides full funding for the purchase and installation of videoconferencing system hardware;

• One location efficient mortgage project totaling $154,593; awarded through the Transit-Oriented Development Land-Use Strategies RFP #9798-16 which provides 50% co-funding for projects that implement or demonstrate transportation-related land-use strategies resulting in motor vehicle emissions reductions;

• One High Occupancy Toll (HOT) lane demonstration project totaling $250,000; awarded through RFP #9798-17 which provides $250,000 to demonstrate HOT lanes;

• The Planning Center as the EV Infrastructure Planning and Implementation Consultant for the EVCharge Program totaling $124,970; awarded through RFP #9798-29;

• A sole-source award totaling $250,000 to the California Energy Commission for participation in a statewide EV Infrastructure Incentive Program to defray the cost of EV charging infrastructure installation at residences for new purchases or leases of EVs in the SCAB.

Due to illness, I was not present at the MSRC meeting to consider this portion of the FY 1997-99 Work Program. The AQMD Board will consider this portion of the FY 1997-99 Work Program at our June 12, 1998 meeting.

Increase RFP #9798-20 for On-Road & Off-Road Heavy-Duty Vehicle
Diesel Pollution Reduction Program from $3 Million to $6 Million

In December 1997 the MSRC released RFP #9798-20 for the On-Road & Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program with a target amount set aside of $3 million as part of the FY 1997-99 Work Program. This RFP provides funding in three areas:

• On-Road, In-District Heavy-Duty Vehicles at a maximum of $40,000 per vehicle, while allowing for 50% (up to $150,000) toward infrastructure, for heavy-duty vehicles that accrue at least 85% of their annual mileage or engine hours of operation within the geographical boundaries of the SCAQMD;

• On-Road District Corridor Group, with coordination among the MSRC, SCAQMD, Sacramento Metropolitan AQMD, and San Joaquin Valley Unified APCD, providing funding for those heavy-duty vehicles that do not satisfy the requirement that 85% of annual vehicle miles or hours of engine operation accrue within the geographical boundaries of the SCAQMD. Each participating air district contributes a pro rated share towards the differential cost of the low-emission, alternative fuel heavy-duty vehicle, up to a maximum of $12,000 per ton of NO_x emissions reduced; and

• Off-Road, In-District Heavy-Duty Motor Vehicles at a maximum of $15,000 per vehicle for the replacement (repowering) of existing, non-regulated, uncertified diesel engines with new, CARB-certified engines.

This RFP includes a streamlined application process through June 30, 1998. To date ten proposals totaling $4.8 million have been received. Using turn-back funds from other projects, at its May 28 meeting the MSRC unanimously approved allocating an additional $3 million for a total of $6 million to this RFP. The MSRC will consider projects under this RFP at its July 23, 1998 meeting and subsequently the AQMD Board will consider these projects as part of the FY 1997-99 Work Program in August 1997.

Allocation of $500,000 Reserved for Scrapping to Co-Fund CARB’s South Coast
Scrappage Program

The ARB is implementing a pilot program within the South Coast Air Basin to assess the benefits of the voluntary retirement or scrapping of light-duty vehicles. The purpose of the pilot is to gather information on the incremental emission benefits and cost-effectiveness of early vehicle retirement versus vehicle repair. The ARB issued an RFP in March 1998 to select a contractor to administer the $1.7 million program which is scheduled to begin this summer.

Within its FY 1997-99 Work Program the MSRC set aside $500,000 for scrapping. The ARB has requested that the MSRC use these funds to participate in its pilot program. The ARB estimates that 550 more vehicles could be retired with the MSRC’s co-funding. At its May 28, 1998 meeting the MSRC unanimously agreed to reserve the $500,000 for ARB’s pilot program and directed its staff to send a letter of commitment to the ARB. The monies will be officially allocated to the program once the contractor has been selected and program details are finalized. The MSRC will receive additional information on the program at that time. A sole-source award for this program as part of the FY 1997-99 Work Program will be considered by the AQMD Board at a future date.

Exercised Option Contained in its Technical Advisor’s Contract to Extend for
Another One-Year Term

The current contract for the MSRC’s Technical Advisor Raymond Gorski expires June 30, 1998. The contract contains a provision to extend the contract for three additional one-year periods at the discretion of the MSRC. At its May 28, 1998 meeting the MSRC went into closed session to evaluate the performance of Mr. Gorski, who was selected last year through a competitive bid process. Following closed session the MSRC unanimously extended Mr. Gorski’s contract through June 30, 1999, in the amount of $119,232.

Reimbursement of FY 1997-98 Third Quarter Staff and Contract Administration and Technical Support Costs and FY 1997-98 Third Quarter Miscellaneous Costs

In May 1997 the MSRC approved the reimbursement of AQMD staff and contract administration and technical support for FY 1997-98 in the amount of $545,000 as well as $30,000 for miscellaneous costs, such as printing, mailing, and supplies. For the FY 1997-98 third quarter staff and contract administration costs were $83,172 and technical support costs were 28,850. For the FY 1997-98 third quarter miscellaneous costs were $8,318.50.

For your information the MSRC will be considering reimbursement of such costs for FY 1998-99 at its June 25, 1998 meeting.

Contract Modification Requests

The MSRC took the following unanimous actions on requested contract modifications:

1. Approval of a six-month contractual term extension through December 4, 1998, for City of Los Angeles Contract #C97008;

2. Approval of a 14-week contractual term extension through July 31, 1998, contingent that no further extensions be granted, for Lapis Energy Organization Contract #96012;

3. Approval of a 12-week contractual term extension through July 31, 1998, contingent that no further extensions be granted, and the replacement of a participant to allow Walnut Unified School District to participate, with the return of $250,000 to the Discretionary Fund because of the reduction of participants, for A-Z Bus Sales Contract #95022; and

4. Approval to terminate Tred Foundation Contract #95026 because the LNG engines currently available do not provide the horsepower required for this particular application. Approximately $900,000 will be returned to the Discretionary Fund.

The MSRC also received and filed a report on "Scope Changes Handled Administratively by the AQMD Contract Administrator" for the month of May 1998. The report included two minor contract modifications: 1) a scope change to allow for the purchase of a new vehicle rather than repowering a vehicle for Waste Management of the Desert Contract #95012, which provides $852,200 for the conversion of heavy-duty diesel trucks to natural gas; and 2) a minor correction to the statement of work on EV Media Contract #98003, which provides $49,953 for air quality/student education programs.

Contract Administrator Report

The MSRC's AB 2766 Contract Administrator provided a written status report on all fiscal year contracts. This Contract Administrator Report is attached for your information (Attachment 2). This Report includes a spreadsheet on the Local Government Subvention Match Program listing those projects that have met MSRC program requirements to date.

Attachments

1. -Approved April 23, 1998, MSRC Meeting Minutes

2. - Contract Administrator Report

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