BOARD MEETING DATE: October 9, 1998 AGENDA NO. 11
PROPOSAL:
Execute Contracts for AQIP Proposals Received During Second Quarter of 1998
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 second quarter of 1998 and this action is to recommend one for funding. The amount available for this quarter is $515,966.
COMMITTEE:
Mobile Source, September 25, 1998, Recommended for Approval
RECOMMENDED ACTION:
Authorize the Chairman to execute a contract for a total amount not to exceed $350,005 from the AQIP Special Revenue Fund to obtain mobile source emission reductions with Pick Your Part Auto Wrecking.
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 disbursal of funds from the AQIP compliance option for the second quarter of 1998.
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 second quarter of 1998 submittal period ended on June 30, 1998 with 46 employers participating in the AQIP program. The total AQIP funds received during this period were $122,299, which includes both annual and triennial participants (see Attachment 1). In addition, $393,667 is being carried forward from the previous quarters. Therefore, the total amount available for this quarter is $515,966. Staff recommends that $350,005 be used to purchase emission reductions to satisfy the one-year and the three-year requirements and to provide surplus emission reductions.
Proposal Evaluation
During the second quarter of 1998, six proposals were received requesting funds ranging from $62,500 to $800,000. The project proposals received can be grouped in three categories: old-vehicle scrapping, transportation demand management, and other. 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 five AQMD employees: three from Transportation Programs; one from Planning; and one from Technology Advancement; comprised of three Program Supervisors, one Air Quality Specialist and one Transportation Specialist. The panel consisted of two females and three males; one Asian/Pacific Islander, two Caucasian, and two Hispanic. Attachment 5 discusses the selection criteria, the scoring process, and the overall ratings for each proposal.
Attachment 5 provides a summary of the proposal rankings. While cost-effectiveness is the most heavily weighted criteria for determining ranking, the amount of funding available ultimately determines the recommendation. For the second quarter $122,299 was received. Pick Your Part Auto Wrecking option #5 was the most cost-effective in regard to available funds and meeting the necessary emission reductions. This option provides additional emission reductions to guard against shortfalls in the future.
The following proposal is recommended for approval:
Pick Your Part Auto Wrecking Option 5 $350,005
Pick Your Part Auto Wrecking proposes to generate MSERCs by eliminating pre-1982 vehicles through old-vehicle scrapping. Option 7 of their proposal has a cost-effectiveness of $1.25/lb.
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
2. The Black Voice News
3. Chinese Daily News
4. Eastern Group Publications
5. El Chicano
6. The Excelsior
7. Inland Empire Hispanic News
8. Inland Valley Daily Bulletin
9. Korea Central Daily
10. La Opinion
11. La Voz
12. Los Angeles Daily News
13. Los Angeles Sentinel
14. Los Angeles Times
15. M/W/DVBE Source
16. Orange County Register
17. Palm Springs Desert Sun
18. Philippine News
19. Precinct Reporter
20. Rafu Shimpo
21. Riverside Press Enterprise
22. San Bernardino Sun
23. Santa Clarita Signal
24. State of California Contracts Register
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 June 4, 1998 to highlight the requirements of the proposals and to answer questions from the six prospective bidders in attendance.
Resource Impact
Not applicable.
Attachments
1. AQIP 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
ATTACHMENT 1
AQIP - Second Quarter 1998
TABLE 1
Funds Received (as of June 30, 1998)
|
Program |
Funding |
|
Annual |
$ 50,160 |
|
Triennial |
$ 72,139 |
|
Total Second Quarter, 1998 |
$ 122,299 |
TABLE 2
Annual Participation
|
County |
Worksites |
Employees |
Contribution |
|
Los Angeles |
5 |
686 |
$ 41,160 |
|
Orange |
1 |
150 |
$ 9,000 |
|
Riverside |
0 |
0 |
0 |
|
San Bernardino |
0 |
0 |
0 |
|
TOTAL |
6 |
836 |
$ 50,160 |
TABLE 3
Triennial Participation
|
County |
Worksites |
Employees |
Contribution |
|
Los Angeles |
23 |
477 |
$ 36,660 |
|
Orange |
12 |
416 |
$24,940 |
|
Riverside |
2 |
49 |
$ 2,940 |
|
San Bernardino |
3 |
127 |
$ 7,599 |
|
TOTAL |
40 |
1069 |
$ 72,139 |
ATTACHMENT 2
AQIP - Second Quarter 1998
TABLE 1
Emission Reduction Targets
(Pounds)
|
Program |
VOC |
NOx |
CO |
|
1998 |
8,175 |
6,164 |
63,082 |
|
1999 |
462 |
371 |
3,612 |
|
2000 |
396 |
344 |
3,175 |
|
TOTAL
|
9,033 |
6,879 |
69,869 |
ATTACHMENT 2
(Continued)
TABLE 2
Emission Reduction Credit Balances
(Pounds)
|
Emission Bank
|
Emission
|
Emission Credits From Recommended
|
New Balance
|
|
|
a |
B |
c |
=(a-b+c) |
|
|
VOC |
|
|
|
|
|
1998 |
363,560 |
8,175 |
39,365 |
394,750 |
|
1999 |
139,999 |
462 |
39,365 |
178,902 |
|
2000 |
15,633 |
396 |
39,365 |
54,602 |
|
NOx |
|
|
|
|
|
1998 |
82,916 |
6,164 |
17,170 |
93,922 |
|
1999 |
118,724 |
371 |
17,170 |
135,523 |
|
2000 |
56,930 |
344 |
17,170 |
73,756 |
|
CO |
|
|
|
|
|
1998 |
2,346,458 |
63,082 |
259,340 |
2,542,716 |
|
1999 |
1,045,297 |
3,612 |
259,340 |
1,301,025 |
|
2000 |
104,583 |
3,175 |
259,340 |
360,748 |
ATTACHMENT 3
Summary
Air Quality Investment Program
Proposals Received - First Quarter 1998
The following proposals were received in response to the AQIP Request for Proposals (RFP) on or before June 30, 1998. The proposals are not listed by classification or rank.
1. Ecology Auto Wrecking Option A $216,000
Option B $315,000
Option C $515,000
Option D $772,500
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 range of $1.32 to $1.34 per pound. (Not funded: Ranked second among old-vehicle scrapping proposals.)
2. Pick Your Part Auto Wrecking Option 1 $150,000
Option 2 $200,000
Option 3 $250,000
Option 4 $300,000
Option 5 $350,005
Option 6 $400,000
Option 7 $500,000
Option 8 $600,000
Option 9 $700,000
Option 10 $800,000
County: All
Pick Your Part Auto Wrecking proposes to generate MSERCs by eliminating pre-1982 vehicles through old-vehicle scrapping. The ten options have a cost-effectiveness range of $1.24 to $1.29. (Funded Option #5, as it exceeds the Emission Reduction Target and is the most cost effective.)
3. Market-Based Solutions, Inc. Option 1 $ 91,100
Option 2 $122,600
County: All
Market-Based Solutions proposes to generate MSERCs through an old-vehicle scrapping program. This proposal offers two options with cost-effectiveness values of $1.97 and $2.89 per pound respectively. (Not funded: Ranked third among old-vehicle scrapping proposals.)
4. Omnitrans Option 1 $ 75,000
Option 2 $100,000
Option 3 $200,000
Option 4 $300,000
Option 5 $556,524
County: San Bernadino
This project proposes to reduce emissions by deploying 47 natural gas vans in the Inland Empire for demand response services. (Not funded: Proposed emission reductions does not occur until Year 2000, and does not meet the required time lines.)
5. City of Fullerton $169,000
County: Orange
City of Fullerton proposes to reduce emissions by converting traffic signals to protected/permissive left turn operations. (Not funded: These emission reductions are already included in SCAG’s baseline under TCM 1.)
6. OceanAir Environmental Option 1 $ 62,500
Option 2 $120,000
Option 3 $171,672
Option 4 $120,000
Option 5 $230,005
Option 6 $328,416
Option 7 $172,500
Option 8 $330,000
Option 9 $470,232
County: Los Angeles
OceanAir Environmental proposes to generate Emission Reduction Credits by repowering a pusher tugboat based in the Port of Long Beach with a low-emissions diesel engine. The nine options have a cost-effectiveness ranging between $2.09 and $2.49. (Not funded in this quarter. Option #8, was funded in the previous quarter.)
ATTACHMENT 4
AQIP - Second Quarter 1998
Proposal Summary (By Type)
|
OLD-VEHICLE SCRAPPING |
AQIP
|
Total
Cost |
AQIP
|
Emission Reduction Commitments
| ||||
|
VOC |
NOx |
CO | ||||||
|
Pick Your Part Auto Wrecking Option 1 |
$150,000 |
$150,000 |
Triennial |
50,871 |
22,080 |
338,340 | ||
|
Option 2 |
$200,000 |
$200,000 |
Triennial |
67,677 |
29,430 |
451,860 | ||
|
Option 3 |
$250,000 |
$250,000 |
Triennial |
84,666 |
36,795 |
565,560 | ||
|
Option 4 |
$300,000 |
$300,000 |
Triennial |
102,480 |
44,145 |
670,500 | ||
|
Option 5 |
$350,005 |
$350,005 |
Triennial |
118,095 |
51,510 |
778,020 | ||
|
Option 6 |
$400,000 |
$400,000 |
Triennial |
135,600 |
58,875 |
886,560 | ||
|
Option 7 |
$500,000 |
$500,000 |
Triennial |
166,419 |
73,590 |
1,104,540 | ||
|
Option 8 |
$600,000 |
$600,000 |
Triennial |
194,904 |
88,305 |
1,311,720 | ||
|
Option 9 |
$700,000 |
$700,000 |
Triennial |
224,946 |
103,020 |
1,517,880 | ||
|
Option 10 |
$800,000 |
$800,000 |
Triennial |
256,887 |
117,765 |
1,734,669 | ||
|
Market-Based Solutions
|
$91,100 |
$91,100 |
Triennial |
10,500 |
7,000 |
98,000 | ||
|
Option 2 |
$122,600 |
$122,600 |
Triennial |
20,700 |
13,800 |
193,200 | ||
|
Ecology Auto Wrecking Option A |
$216,000 |
$216,000 |
Triennial |
67,800 |
32,100 |
448,800 | ||
|
Option B |
$315,000 |
$315,000 |
Triennial |
94,320 |
47,700 |
648,000 | ||
|
Option C |
$515,000 |
$515,000 |
Triennial |
157,200 |
79,500 |
1,080,000 | ||
|
Option D |
$772,500 |
$772,500 |
Triennial |
235,800 |
119,250 |
1,620,000 | ||
ATTACHMENT 4 (Continued)
|
TRANSPORTATION DEMAND MANAGEMENT |
AQIP
|
Total
Cost |
AQIP
|
Emission Reduction Commitments
| ||||
|
VOC |
NOx |
CO | ||||||
|
Omnitrans
|
$ 75,000 |
$556,524 |
Triennial |
13,142 |
10,049 |
102,039 | ||
|
Option 2 |
$100,000 |
$556,524 |
Triennial |
13,142 |
10,049 |
102,039 | ||
|
Option 3 |
$200,000 |
$556,524 |
Triennial |
13,142 |
10,049 |
102,039 | ||
|
Option 4 |
$300,000 |
$556,524 |
Triennial |
13,142 |
10,049 |
102,039 | ||
|
Option 5 |
$556,524 |
$556,524 |
Triennial |
13,142 |
10,049 |
102,039 | ||
|
OTHER |
AQIP
|
Total
Cost |
AQIP
|
Emission Reduction Commitments
| ||||
|
VOC |
NOx |
CO | ||||||
|
OceanAir Environmental Option 1 |
$62,500 |
$628,540 |
Annual |
54 |
25,000 |
86 | ||
|
Option 2 |
$120,000 |
$628,540 |
Annual |
107 |
50,000 |
172 | ||
|
Option 3 |
$171,672 |
$628,540 |
Annual |
160 |
74,640 |
257 | ||
|
Option 4 |
$120,000 |
$628,540 |
Biennial |
108 |
50,000 |
172 | ||
|
Option 5 |
$230,000 |
$628,540 |
Biennial |
214 |
100,000 |
344 | ||
|
Option 6 |
$328,416 |
$628,540 |
Biennial |
320 |
149,280 |
514 | ||
|
Option 7 |
$172,500 |
$628,540 |
Triennial |
162 |
75,000 |
258 | ||
|
Option 8 |
$330,000 |
$628,540 |
Triennial |
321 |
150,000 |
516 | ||
|
Option 9 |
$470,232 |
$628,540 |
Triennial |
480 |
223,920 |
771 | ||
|
City Of Fullerton |
$169,000 |
$219,000 |
Annual |
12,152 |
28,682 |
99,696 | ||
ATTACHMENT 5
Summary
AQIP - Second Quarter 1998
Proposal Ratings
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* |
AVG. SCORE |
|
Pick Your Part - Option 1 |
Old-Vehicle Scrapping |
424.0 |
70.7 |
|
Pick Your Part - Option 2 |
Old-Vehicle Scrapping |
423.0 |
70.5 |
|
Pick Your Part - Option 3 |
Old-Vehicle Scrapping |
422.0 |
70.3 |
|
Pick Your Part - Option 4 |
Old-Vehicle Scrapping |
421.0 |
70.2 |
|
Pick Your Part - Option 6 |
Old-Vehicle Scrapping |
418.0 |
69.7 |
|
Pick Your Part - Option 5 |
Old-Vehicle Scrapping |
417.0 |
69.5 |
|
Pick Your Part - Option 7 |
Old-Vehicle Scrapping |
416.0 |
69.3 |
|
Pick Your Part - Option 8 |
Old-Vehicle Scrapping |
411.0 |
68.5 |
|
Pick Your Part - Option 9 |
Old-Vehicle Scrapping |
409.0 |
68.2 |
|
Pick Your Part - Option 10 |
Old-Vehicle Scrapping |
404.0 |
67.3 |
|
Ecology Auto Wrecking - Option A |
Old-Vehicle Scrapping |
400.0 |
66.7 |
|
Ecology Auto Wrecking - Option C |
Old-Vehicle Scrapping |
400.0 |
66.7 |
|
Ecology Auto Wrecking - Option D |
Old-Vehicle Scrapping |
400.0 |
66.7 |
|
Ecology Auto Wrecking - Option B |
Old-Vehicle Scrapping |
394.0 |
65.7 |
|
Market Based Solutions - Option 2 |
Old-Vehicle Scrapping |
348.0 |
58.0 |
|
OceanAir Environmental - Option 6 |
Clean Diesel Tugboat Repower |
318.0 |
53.0 |
|
OceanAir Environmental - Option 3 |
Clean Diesel Tugboat Repower |
313.5 |
52.3 |
|
OceanAir Environmental - Option 5 |
Clean Diesel Tugboat Repower |
310.0 |
51.7 |
|
OceanAir Environmental - Option 2 |
Clean Diesel Tugboat Repower |
306.5 |
51.1 |
|
OceanAir Environmental - Option 4 |
Clean Diesel Tugboat Repower |
303.0 |
50.5 |
ATTACHMENT 5
Summary
AQIP - Second Quarter 1998
Proposal Ratings
(Continued)
|
PROPOSALS |
PROPOSAL TYPE |
TOTAL SCORE* |
AVG. SCORE |
|
OceanAir Environmental - Option 1 |
Clean Diesel Tugboat Repower |
300.5 |
50.1 |
|
Market Based Solutions - Option 1 |
Old Vehicle Scrapping |
288.0 |
48.0 |
|
OceanAir Environmental - Option 9 |
Clean Diesel Tugboat Repower |
285.0 |
47.5 |
|
OceanAir Environmental - Option 8 |
Clean Diesel Tugboat Repower |
278.0 |
46.3 |
|
OceanAir Environmental - Option 7 |
Clean Diesel Tugboat Repower |
272.0 |
45.3 |
|
City of Fullerton |
Conversion of Traffic Signals to Protected/Permissive Left Turn Operations |
262.0 |
43.7 |
|
Omnitrans - Option 1 |
Purchase 47 NG vans for demand response services. |
216.0 |
36.0 |
|
Omnitrans - Option 2 |
Purchase 47 NG vans for demand response services. |
197.0 |
32.8 |
|
Omnitrans - Option 3 |
Purchase 47 NG vans for demand response services. |
184.0 |
30.7 |
|
Omnitrans - Option 4 |
Purchase 47 NG vans for demand response services. |
168.0 |
28.0 |
|
Omnitrans - Option 5 |
Purchase 47 NG vans for demand response services. |
162.0 |
27.0 |
* Aggregated total score from all five members of the proposal evaluation panel.
ATTACHMENT 6
AQIP -Second Quarter 1998
TABLE 1
Proposal Recommended for Funding
Anticipated Emission Reductions
(Pounds/Year)
|
PROGRAM |
VOC |
NOx |
CO |
|
Pick Your Part auto Wrecking | |||
|
First Year Emission Reductions |
39,365 |
17,170 |
259,340 |
|
Second Year Emission Reductions |
39,365 |
17,170 |
259,340 |
|
Third Year Emission Reductions |
39,365 |
17,170 |
259,340 |
TABLE 2
Proposal Recommended for Funding
Funding Request
|
PROGRAM |
AQIP Funding
|
Total
|
|
Pick Your Part Auto Wrecking |
$350,005 |
$350,005 |
/ / /