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PROPOSAL:

Report on FY 1999-2000 AB 2766 Discretionary Fund Work
Program and Approve Issuance of Three RFPs for Heavy-Duty Category

SYNOPSIS:

The MSRC has proposed a $16.275 million Work Program for FY 1999-2000 consisting of three categories: 1) a Light-Duty Vehicle Program--$3.625 million; 2) a VMT Reduction and TCM Strategies Program--$3.05 million; and 3) a Heavy-/Medium-Duty Vehicle Program--$9.6 million. At this time the MSRC requests Board approval for the issuance of three RFPs under the heavy-duty category. These RFPs are as follows: On-Road & Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program; Alternative Fuel Transit Bus Program; and Technical Assistance to Fleets (in Support of MSRC’s Heavy-Duty Vehicle Program). The MSRC will also simultaneously release three PONs within the light-duty and TCM categories, which may or may not result in development of RFPs.

COMMITTEE:

Mobile Source Air Pollution Reduction Review Committee,
February 25, 1999, Approved Unanimously

RECOMMENDED ACTION:

Approve issuance of the attached three RFPs as part of the FY 1999-2000 AB 2766 Discretionary Fund Work Program: 1) #9899-24 for the On-Road & Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program; 2) #9899-25 for the Alternative Fuel Transit Bus Program; and 3) #9899-26 for Technical Assistance to Fleets (in Support of the MSRC’s Heavy-Duty Vehicle Program).

Gregory T. Winterbottom
Chair, MSRC

Background

In September 1990 Assembly Bill 2766 was signed into law (Health & Safety Code Sections 44220-44247) authorizing the imposition of an annual $4 motor vehicle registration fee to fund the implementation of programs exclusively to reduce air pollution from motor vehicles. AB 2766 provides that 30 percent of the annual $4 vehicle registration fee subvened to the AQMD be placed into an account to be allocated pursuant to a work program developed and adopted by the MSRC and approved by the AQMD Governing Board. It is estimated that approximately $13 million, including projected interest and revenue carryover, will be available in the Discretionary Fund in FY 1999-2000. In addition, the MSRC plans to redirect $3.375 million originally allocated to another program within the FY 1997-99 Work Program.

Report on FY 1999-2000 AB 2766 Discretionary Fund Work Program

To utilize these funds and achieve the maximum emissions reduction benefits, the MSRC’s Work Program Development Subcommittee developed a $16.275 million FY 1999-2000 AB 2766 Discretionary Fund Work Program. The Work Program will consist of the following elements.

1) Light-Duty Vehicle Program ($3.625 million):

• EV Programmatic Outreach: for coordination and outreach with other public/private partnerships to promote the transition of ZEVs into the basin ($150,000);
• Light-Duty Automobile Repair Assistance Program ($100,000): 50% co-funding for the repair of 300 light-duty vehicles, similar to a vehicle repair program implemented by the San Diego APCD;
• Light-Duty Purpose-Built Zero Emission Vehicle Projects ($3 million): provide up to $5,000 per qualifying ZEV with a minimum purchase or lease of ten ZEVs for public or private entities in fleet or business applications, with funding reallocated from the $5,000 EV Buydown Program in the FY 1997-99 Work Program;
• Extend the current $5,000 EV Buydown Program through June 30, 2001 (launched in the FY 1997-99 Work Program), with no additional funding;
• Extend the current $3,000 ULEV Buydown Program through June 30, 2001 (launched in the FY 1997-99 Work Program) with no additional funding; and
• Extend participation in the California Energy Commission’s Charging Incentive through June 30, 2001 (launched in the FY 1997-99 Work Program), with an additional $375,000 funding reallocated from the $5,000 EV Buydown Program in the FY 1997-99 Work Program.

2) VMT Reduction and TCM Strategies Program ($3.05 million):

• 50% co-funding for TDM/Ridesharing/Advanced Traveler Management Information Systems (ATMIS) programs (sharing $1.5 million);
• 50% co-funding for voluntary-based employer rideshare incentives (sharing $1.5 million);
• 50% co-funding for fleet/business VMT reduction programs (sharing $1.5 million);
• Co-funding for bicycle programs ($500,000);
• Co-funding for videoconferencing/teleconferencing projects ($750,000); and
• Co-funding for transit-oriented land-use programs ($300,000).

3) Heavy-/Medium-Duty Vehicle Program ($9.6 million):

• Alternative Fuel Transit Bus Program ($6 million): through a streamlined application process, on a first-come, first-serve basis, provide up to $40,000 co-funding toward the purchase of new 35/40-foot OEM clean-fuel transit buses, including refueling infrastructure and mechanic training costs to encourage both small and large fleet operators to participate;
• On-Road & Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program ($3.4 million): through a streamlined application process, on a first-come, first-serve basis, provide co-funding for 1) new OEM on-road heavy-duty vehicles of 14,000 GVWR or greater that would accrue at least 85% of mileage within the SCAQMD, and 2) new OEM or repowered off-road vehicles, including refueling infrastructure;
• Technical Assistance to Fleets (in support of the MSRC’s Heavy-Duty Vehicle Program) ($200,000): contract with a consultant team to assist with outreach to fleets, application preparation support, vehicle and refueling station specification development support, ongoing technical assistance, and vehicle monitoring, data collection and reporting.

The individual target funding allocations may be reassigned by the MSRC based on the Committee’s review of proposals received in each respective category and to allow for mid-year adjustments.

Solicitations for these categories will be issued in three phases:

• In late February the MSRC released three PONs: PON #9899-A for the Light-Duty Purpose-Built Zero Emission Vehicle Projects; PON #9899-B for three elements of the VMT Reduction and TCM Strategies Program; and PON #9899-C for the Light-Duty Automobile Repair Assistance Program. The first PON will be open for six months until August 31, 1999; the other two will close March 23, 1999. These PONs may or may not result in development of RFPs.
• In March the MSRC plans to release three RFPs within the Heavy-/Medium-Duty Vehicle Program.
• In April or May RFPs for the remainder of the work program categories will be released.

Proposal

At its February 25, 1999, meeting the MSRC unanimously approved the three PONs for immediate release and the three RFPs for release subject to concurrence by the AQMD Governing Board at its March 12, 1999 meeting.

The RFP for technical assistance will close April 30, 1999, at 5:00 p.m. while the other two RFPs contain an application period from March 16 through July 30, 1999, during which applications will be accepted on a first-come, first-serve basis.

The On-Road & Off-Road RFP was developed to complement the AQMD’s Carl Moyer Fund Program. Since Moyer monies cannot be used toward refueling infrastructure costs, the MSRC’s RFP allows applicants applying under the Carl Moyer Fund Program for heavy-duty vehicle funding to request alternative-fuel refueling infrastructure funding from the MSRC. A maximum funding limit of $1.7 million for any one entity has been included in this RFP to ensure broad-based participation.

The Alternative Fuel Transit Bus RFP includes a geographic minimum per county of $800,000 to also ensure broad-based participation through the region.

Specific projects selected by the MSRC as a result of the application process will be subject to future Governing Board approval of the work program. At this time the MSRC requests Board approval to issue the three RFPs within the Heavy-/Medium-Duty Vehicle Program.

Outreach

A brochure announcing the three RFPs along with the three PONs will be mailed to 1,700+ interested individuals and entities contained in the MSRC’s mailing list. Staff is also attempting to compile a list of targeted interest groups, such as the trucking industry, to which the brochure and PONs may be mailed. Assuming approval of the three RFPs, ads will appear in several newspapers, including several targeting minorities, throughout the Basin. To assist potential bidders in submitting qualified proposals, a Bidders’ Conference will be held on March 26, 1999, for the Technical Assistance RFP and a second Bidders’ Conference for the Transit Bus and On-Road/Off-Road RFPs will be convened on March 30, 1999. The brochure and PONs will also be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations. The perforated portion of the brochure may be returned to request copies of the RFP(s) or interested individuals may call the AQMD to request copies. The brochure and PONs will also be placed on the Internet at AQMD’s web site [http://www.aqmd.gov, "Business & Job Opportunities" Icon] and can be electronically downloaded if so desired.

Resource Impacts

Health & Safety Code Section 44243(2)(c) requires the AQMD to deposit the discretionary fund revenues "in an account to be used, pursuant to Section 44244, to provide grants to fund projects for the exclusive purpose of reducing air pollution from motor vehicles." Since the monies for these RFPs will be drawn from this special fund, there would be no fiscal impact on the AQMD’s operational budget.

Attachments

1 – RFP #9899-24: On-Road & Off-Road Heavy-Duty Vehicle Program
2 – RFP #9899-25: Alternative Fuel Transit Bus Program
3 – RFP #9899-26: Technical Assistance to Fleets

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