Back

BOARD MEETING DATE: April 9, 1999 AGENDA NO. 11

PROPOSAL:

Issue an RFP to Solicit Projects for Carl Moyer Memorial Air Quality Standards Attainment Program Funding

SYNOPSIS:

The AQMD has submitted a request to ARB for up to $12,000,000 from the Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer Program). This RFP complies with ARB program guidelines and funding criteria for low-emission on- and off-road vehicles and equipment, including marine and agricultural equipment. This action is to issue an RFP for up to $12 million for the Carl Moyer Program.

COMMITTEE:

Technology, March 26, 1999, Recommended for Approval

RECOMMENDED ACTION:

Approve Issuance of an RFP to Solicit Projects for Carl Moyer Memorial Air Quality Standards Attainment Program Funding.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The federal Clean Air Act Amendments of 1990 classified the South Coast Air Basin as "extreme" nonattainment for ozone, and "serious" nonattainment for fine particulate matter (PM₁₀) and carbon monoxide. With an increasing number of trucks and other heavy-duty vehicles and a multiplying of vehicle miles traveled (VMT), the need for reducing emissions from these sources is critically important to meet clean air goals.

The Basin includes 39% of the state’s Class 7 and 8 trucks, and accounts for 43% of the state’s VMT for these vehicles. Among the state’s eight largest air districts, the South Coast accounts for 36.8% of the heavy-duty engine NOx emission inventory, and represents 50.5% of the exposed population.

The majority of heavy-duty vehicles in the Basin are powered by diesel engines, which contribute significantly to the Basin’s emissions of NOx and particulates. The District has long recognized the adverse air quality and health impacts of diesel exhaust. The AQMD’s Environmental Justice Initiative No. 7 targets the reduction of diesel exhaust in the Basin. The Board reaffirmed its position supporting the purchase and use of alternative fuel vehicles in transit and other fleets at its October 1998 meeting. At the January 1999 Board meeting, the Board adopted a "Children’s Air Quality Agenda" to pursue additional measures to protect children from the disproportionate impacts of of air pollution. In September, 1998 the California Air Resources Board approved its Science Review Panel's recommendation and listed diesel particulate as a toxic air contaminant based on its potential human cancer risk.

In FY 1998-99, then-Governor Wilson and the California State Legislature, through the State budget process, authorized $25 million in funding as incentives for the purchase of cleaner heavy-duty engines. The program is named after the late Dr. Carl Moyer, in recognition of his work in the air quality field, and his efforts in bringing about this incentive program. The Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer Program) provides funding for the incremental cost of cleaner heavy-duty vehicles, off-road vehicles and equipment, marine, and locomotive engines. The ARB is administering the overall program effort and has developed program requirements and criteria. Project funding will be administered locally by the AQMD. At its March 1999 meeting, the AQMD Board approved submission of a proposal to the ARB for up to $12 million of Carl Moyer Funds.

Proposal

Staff proposes that the AQMD release an RFP to solicit projects for Carl Moyer Program funding. The proposed RFP will solicit projects for on- and off-road vehicles and equipment, including refuse haulers, over-the-road trucks, transit and school buses, construction equipment, marine and port applications, and other vehicles and equipment. New engines, repowers and retrofits are allowed within the program.

Recognizing the contribution to the emissions inventory of on-road heavy-duty vehicles, a goal of two-thirds of the available funding is suggested for on-road heavy-duty vehicle projects, and one-third of the available funding for off-road vehicles and equipment. ARB requires that all projects meet a $12,000/ton cost-effectiveness for standard NOx reductions. In addition, AQMD staff recommends that clean, alternative fuels be given funding priority. (Alternative fuels include compressed natural gas, liquefied natural gas, methanol, ethanol and propane.) As such, proposals for clean, alternative fuels that meet ARB criteria will be funded on a first-come, first-served basis. Proposals that are hand-delivered will be date and time-stamped by the AQMD receptionist. The exception to this clean, alternative fuels priority will be transit districts. Proposals from transit districts will be considered after the July 1, 1999 proposal deadline. This is because transit districts have an opportunity to apply for funding under RFP 9899-25, Alternative Fuel Transit Bus Program, released under the auspices of the Mobile Source Air Pollution Reduction Review Committee (MSRC). Proposals for diesel technologies will also be evaluated after the proposal due date of July 1, 1999.

Carl Moyer funds cannot be used for refueling infrastructure. Staff recommends that $500,000 of Clean Fuels Program funds be used to support refueling infrastructure on a cost-shared basis. In addition, proposers to the Carl Moyer Program may apply for refueling infrastructure support under the MSRC RFP 9899-24, On-Road & Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program.

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:

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. Notice 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.

In addition to the regular AQMD RFP outreach efforts, staff proposes a number of outreach activities to inform as many possible participants in the program as possible. Pre-RFP release meetings will be held with engine and chassis OEMs, and fuel and infrastructure providers to inform them of the opportunities available under the program, and to encourage them to work with fleets in implementing this program. A letter and informational brochure will be sent to several mailing lists representing trucking, bus, marine and off-road equipment entities. A series of bidders conferences/informational workshops is scheduled for the week of April 26 at venues throughout the Basin to provide information on the program and how to apply. In addition, staff will make presentations at a number of local conferences and workshops. In order to ensure that a significant outreach effort is accomplished, and all potential proposers have an equal opportunity to secure funding for qualified projects, the first date for submission of first-come, first-served proposals will be Friday, May 7, 1999. Proposals for all projects will be accepted until 5:00 p.m. on July 1, 1999.

Benefits to AQMD

AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low emission, alternative fuel technologies within its Technology Advancement Office. The AQMD has also supported a number of activities directed to commercialization of low-emission alternative fuel technologies. The Carl Moyer Program funding allocated to the AQMD by the ARB will fund hundreds of low emission trucks, and transit and school buses, in addition to off-road vehicles and equipment, such as construction, port and marine equipment.

Resource Impacts

Staff has prepared a proposal to the ARB for up to $12 million of the available Carl Moyer funds. Upon approval of this proposal by the ARB, staff will prepare a budget augmentation request for approval. Total cost to the AQMD for refueling infrastructure support will not exceed $500,000. Approval for use of these funds will be brought to the Board in specific project form. The program activities will be coordinated with the MSRC and in a manner that is complimentary to the MSRC program.

Attachments

RFP #9899-28 -- Carl Moyer Memorial Air Quality Standards Attainment Program

/ / /