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PROPOSAL:

Execute Contract to Cost Share Implementation of Low Emission, Alternative Fuel Heavy-Duty Trucks in the Western United States

SYNOPSIS:

Heavy-duty vehicles 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. In response to RFP 9899-04, Gladstein & Associates has been selected to facilitate the implementation of low emission, alternative fuel, heavy-duty vehicles within the western United States. Total cost of the project is $308,000. AQMD’s contribution will not exceed $100,000.

COMMITTEE:

Technology, December 17, 1998, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute a contract with Gladstein & Associates in an amount not to exceed $100,000 to facilitate the implementation of low emission, alternative fuel, heavy-duty vehicles within the western United States.

Barry Wallerstein, D.Env.
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 recognition of the contribution of heavy-duty vehicles to the emissions inventory, and the difficulty in implementing low emission technologies, $25 million was placed in ARB’s fiscal year 1998-99 budget to provide incentives for low emission technologies. The Carl Moyer Memorial Air Quality Standards Attainment Program (Moyer Program) will provide funding for the incremental cost of implementing low emission heavy-duty vehicle technologies

Benefits to AQMD

The proposed project is included in the November 1998 update of the Technology Advancement Plan under Project 98TT-1, Assessment of Advanced Technologies and Information Dissemination. 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 can be gained through 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 was published in the following publications:

Additionally, potential bidders were 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. Notices of the RFP were 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 publication in the above-cited publications, over 100 individual RFP notices were mailed to businesses and individuals. Nine organizations attended the mandatory bidders’ conference on September 3, 1998.

Panel Composition

The RFP panel was composed of three scoring members and a chairperson, whose job was to facilitate the scoring process. Two of the scoring members are employed outside the AQMD. One panelist was female; two were male; two were Caucasian, one was Hispanic.

• CEC, Transportation & Fuels Office, Automotive Engineer
• Sacramento Metropolitan AQMD, Clean Fuels Program, Director
• AQMD, Transportation Program, Program Supervisor
• Selection Committee Chairperson: AQMD, Technology Advancement, Program Supervisor

Bid Evaluation

One bid was received in response to RFP 9899-04, from a non-certified woman-owned small business. A phone survey was performed of those attending the mandatory bidders conference to determine if there was a flaw in the RFP that deterred possible bidders from submitting a proposal. The main reason given for not bidding was timing – not enough time to seek cost-share, not ready to submit a proposal at this time, other jobs have priority. Staff determined that there was no flaw in the RFP and that the proposal should be evaluated. The evaluation panel determined that the bid was compliant and acceptable technically, and recommended award.

Recommended Proposal

The previous Interstate Clean Transportation Corridor (ICTC) effort has resulted in the commercial introduction of a small number of alternative fuel heavy-duty vehicles in California. However, there is a need to continue working with existing and candidate fleets in order to implement significant numbers of low emission, alternative fuel vehicles into fleets. In general, heavy-duty fleet operators are not knowledgeable regarding manufacturer alternative fuel products, technical and regulatory requirements for the establishment of alternative fuel fueling facilities, cost of fuel, and any unique maintenance requirements or operating characteristics of the vehicles. There are currently at least six fleets in the process of purchasing LNG Class 8 trucks and implementing fueling infrastructure. These fleets will continue to require assistance in developing vehicle and fueling facility specifications, locating a reliable source of LNG, and training their staff regarding vehicle operation, maintenance and fueling requirements. There is also great interest in alternative fuels by other Class 8 vehicle operators. These operators need basic technical and economic information in order to make the decision to purchase alternative fuel trucks. The proposed contractor will plan and implement a workshop to provide information on current and near-term commercially available low emission heavy-duty engines and chassis.

Until sufficient infrastructure is developed throughout the West, line-haul trucks that begin and end their days in different locations cannot be targeted for the transition to clean alternative fuels. The proposed contractor will pursue projects that will help extend the presently established clean corridors, and link them to include Arizona, New Mexico, and Texas.

The proposed contract with Gladstein & Associates will continue support for fleets implementing low emission, alternative fuel trucks in the Basin and on major intra- and interstate corridors in California, Nevada and Utah. This will be accomplished by acting as a technical resource to the fleets, and by coordinating a workshop for heavy-duty engine/vehicle manufacturers and customers. The project will also 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.

Resource Impacts

The total amount of AQMD funding for the proposed project will not exceed $100,000. The project is cost-shared as follows:

Organization Funding

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 Section 40448.5 and 40512 and Vehicle Code Section 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.

Attachment
Evaluation of Proposals

ATTACHMENT A
EVALUATION OF PROPOSALS
RFP 9899-04

The Evaluation Panel determined that the Gladstein & Associates proposal more than met the minimum requirements of the RFP. Details of the scoring process are described below.

Technical Score

A minimum of 70 points is required in Step 1 to continue in the evaluation process. 50% of the points over 70 are carried to Step 2 (in this case, 8.2). Step 2 is Cost and Other Factors. Step 2 is an objective score calculated by the committee chairperson. The Gladstein proposal scored 53 out of a possible 75 in Step 2. The Step 1 carryover and Step 2 scores were added for a combined score of 61.1.

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