South Coast Air Quality Management District

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Approve in Concept FY 2000-01 AB 2766 Discretionary Fund Work Program; Approve Issuance of RFP/Qs for TCM and Clean Fuels Programs

SYNOPSIS: 

The MSRC has proposed a $14.5 million program consisting of five TCM programs and five clean fuels programs. The TCM programs, for which $1 million has been allocated, include: 1) ridesharing projects; 2) advanced traveler management information services; 3) a competitive employer-market bicycle incentive; 4) a land-use program; and 5) a regional electric bicycle buydown. The clean fuels programs, for which $13.5 million has been allocated, include: 1) an alternative fuels transit bus program; 2) an alternative fuels on-/off-road heavy-duty vehicle program; 3) an allocation for existing light-duty vehicle buydown programs; 4) an alternative fuels subvention fund match program; and 5) a school bus program reserve. The MSRC requests Board approval of Work Program elements and issuance of RFP/Qs.

COMMITTEE: 

Mobile Source Air Pollution Reduction Review Committee,
June 22 and July 27, 2000, Approved Unanimously

RECOMMENDED ACTION:

1. Approve in concept the FY 2000-01 AB 2766 Discretionary Fund Work Program;
2. Approve issuance of the attached RFPs and RFQ;

Mayor William G. Kleindienst
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 a Discretionary Fund 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 $14.5 million, including projected interest and revenue carryover, will be available in the Discretionary Fund for FY 2000-01.

Proposals

To utilize these funds and achieve the maximum emissions reduction benefits, the MSRC developed a $14.5 million FY 2000-01 AB 2766 Discretionary Fund Work Program. The Work Program will consist of the following elements.

TCM Programs ($1 million)

• Voluntary Employer-Based Rideshare Incentive ($300,000): provides 50% funding of ridesharing projects intended to reduce work-related travel with direct incentives to the commuter, including a 50% co-funding match from the employer and a project continuation plan. (Attachment 1)
• Information Technology/Advanced Traveler Management Information Services (ATMIS) Trip Reduction Strategies ($300,000): provides 50% funding of projects reducing VMT through information technology strategies, including a 50% co-funding match and a project continuation plan along with a one-year demonstration period. (Attachment 2)
• Employer-Based Bicycle Projects ($100,000): provides a maximum incentive of 60% (or $650, whichever is less) toward the purchase of new conventional bicycles used for commuting to and from work, and bicycle facilities but only if coupled with bicycle purchases. (Attachment 3)
• Transit-Oriented Development Land-Use Strategies ($200,000): seeks a project implementor to develop and oversee a program achieving onsite parking reductions for new development that results in direct transit incentives to residents, which includes project milestones to ensure a successful effort with real emissions reductions. (Attachment 4)
• Regional Electric-Assist Bicycle Incentive ($100,000): provides a maximum $250 incentive toward the purchase of an electric bicycle used for commuting to and from work, including participation by buyer in a survey at sale point and six months later. (Attachment 5)

Clean Fuels ($13.5 million)

• Alternative Fuel Transit Bus Program ($4.25 million): provides $40,000 per bus towards the incremental cost of alternative fuel bus purchases, 50% of the refueling infrastructure or expansion costs up $200,000 per entity, and 100% of supplemental mechanic training up to $15,000. Transit agencies with less than 100 buses and first-time alternative fuel fleets will have priority access to these funds. (Attachment 6)
• On-/Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program ($3.25 million): provides incentives toward the incremental cost of alternative fuel on-road and off-road heavy duty vehicles, repowering of off-road heavy-duty vehicles using uncontrolled diesel engines with new conventional or alternative fuel engines, and 50% of refueling infrastructure costs up to $200,000 per entity for on-road and $25,000 per project for off-road fleets. This program allocates a minimum funding target of $1.625 million each for public and private heavy-duty vehicle fleets. (Attachment 7)
• Allocation to Existing Buydown Programs for Light-Duty Alternative Fuel Vehicles ($2 million); this allocation will not result in a solicitation, but will be used to augment the current programs which have been oversubscribed. The current programs provide a $5,000 buydown incentive for ZEVs and a $3,000 buydown incentive for ULEVs. (Attachment 8)
• Alternative Fuels Subvention Fund Match Program ($3 million): For local governments receiving AB 2766 City Subvention Funds, this program provides a 50-70% match to their subvention dollars for alternative fuels infrastructure and medium-/heavy-duty alternative fuel vehicles. (MSRC has not yet given its final approval to this portion of the work program. Therefore, this portion will be brought back to the Board if it changes from this description.)
• Reserve Allocation for Pending School Bus Program ($1 million); this allocation will not result in the immediate release of a solicitation, but is pending details of how the state's school bus replacement program will be conducted. An RFQ may be released at a later date. (Attachment 9)

The MSRC approved the framework for this Work Program at its May 25, 2000 meeting. On June 22, 2000, the MSRC unanimously approved the TCM RFPs and RFQ. The Clean Fuels Program solicitations were considered on July 27, 2000 and recommended for approval as part of the conceptual FY 2000-01 AB 2766 Discretionary Fund Work Program. The individual target funding allocations may be reassigned by the MSRC based on its review of proposals received in each respective category and to allow for mid-year adjustments. In addition, the $1 million for TCMs will remain within the TCM programs, but may be shifted within the five solicitations if a program(s) is under/oversubscribed. However, for both Clean Fuels and TCM Programs, the individual entities receiving awards, a description of the project, and the amount received by each entity will be brought to the Board for approval. At this time the MSRC is requesting the Board’s approval to issue six RFPs and one RFQ. Proposals will be due by 5:00 p.m. on Thursday, October 5, 2000.

Outreach

Assuming approval of the RFP/Qs, a public notice will appear in several newspapers throughout the Basin, including several targeting minorities, advertising the funding opportunities and inviting proposals, in accordance with the AQMD's consulting and contracting policies.

A brochure announcing these funding opportunities will be mailed to over 1,800 interested parties on the MSRC's mailing list, as well as to the Black and Latino Legislative Caucuses, City Managers, Chambers of Commerce, and business associations. The perforated portion of the brochure may be returned to request copies of the solicitations. A targeted mailing list of bicycle vendors throughout California will be assembled for a specialized mailing of the Regional Electric-Assist Bicycle Incentive RFQ. Staff will also obtain a list from AQMD’s Transportation Programs division containing interested parties and rideshare groups for a specialized mailing of the Voluntary Employer-Based Rideshare Incentive RFP.

The RFPs and RFQ will be placed on the MSRC's website, which went on-line on July 1, 2000. The MSRC's website is "http://www.msrc-cleanair.org". They will also be included on the AQMD's website under the "Business and Job Opportunities" icon, and information will be included about the RFP/Qs on the AQMD's bidder's 24-hour telephone message line (909) 396-2724.

To assist potential bidders in submitting qualified proposals, technical workshops and bidders’ conferences will be conducted at AQMD Headquarters as follows:

Proposal Evaluation

Proposals received by the deadline will be evaluated by members of the MSRC's Technical Advisory Committee, a diverse group of individuals appointed by participating members as prescribed in the Health & Safety Code.

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 solicitations will be drawn from this special fund, there would be no fiscal impact on the AQMD’s operational budget.

Attachments

1. RFP #P2001-04: Voluntary Employer-Based Rideshare
2. RFP #P2001-05: Information Technology/ATMIS
3. RFP #P2001-06: Employer-Based Bicycle Projects
4. RFP #P2001-07: Transit-Oriented Development Land-Use Strategies
5. RFQ #Q2001-02: Regional Electric-Assist Bicycle Incentive
6. RFP #P2001-09: Alternative Fuel Transit Bus
7. RFP #P2001-08: On-/Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction
8. Summary of Light-Duty Vehicle Buydown Program
9. Summary of School Bus Program Reserve

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