South Coast Air Quality Management District

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Execute Contracts for On-Road, Off-Road and Infrastructure Vehicles and Equipment Awarded Under Carl Moyer Memorial Air Quality Standards Attainment Program

SYNOPSIS:

On September 10, 1999, the Board approved the release of an RFP to implement the Carl Moyer Memorial Air Quality Standards Attainment Program for low-emission on- and off-road vehicles. Staff proposes to award contracts to fund on- and off-road vehicles and equipment, and fueling infrastructure. Total cost of these awards is $7,115,618 with $3,065,618 from the Carl Moyer Program Fund and $4,050,000 from the Clean Fuels Fund.

COMMITTEE:

Technology, July 28, 2000, Recommended for Approval.

RECOMMENDED ACTION:

Authorize the Chairman to execute the following contracts for the Carl Moyer Program:

1. A contract with California Box Company to purchase two forklifts, in an amount not to exceed $5,373, from the Clean Fuels Fund.
   
   
2. A contract with Virco Manufacturing to purchase 30 forklifts with batteries, in an amount not to exceed $301,396, from the Clean Fuels Fund.
   
   
3. A contract with Fabrica International, Inc. to purchase two forklifts with batteries, in an amount not to exceed $25,598, from the Clean Fuels Fund.
   
   
4. A contract with Chromoa Systems Partners to purchase two forklifts with batteries, in an amount not to exceed $18,622 from the Clean Fuels Fund.
   
   
5. A contract with Hayward Pool Products to purchase two forklifts with batteries, in an amount not to exceed $20,200, from the Clean Fuels Fund.
   
   
6. A contract with Alford Distributing Company to purchase one forklift with battery, in an amount not to exceed $3,000, from the Clean Fuels Fund.
   
   
7. A contract with American Marine to purchase ten new ARB certified diesel-fuel engines for marine application, in an amount not to exceed $449,702, from the Carl Moyer Program Fund.
   
   
8. A contract with Seaboard Marine to purchase four new ARB certified diesel-fuel engines for marine application, in an amount not to exceed $175,834, from the Carl Moyer Program Fund.
   
   
9. A contract with OceanAir Environmental to purchase ten new ARB certified diesel-fuel engines for marine application, in an amount not to exceed $636,600, from the Carl Moyer Program Fund.
   
   
10. A contract with Harley Marine Services to purchase two new ARB certified diesel-fuel engines for marine application, in an amount not to exceed $267,000, from the Carl Moyer Program Fund.
    
    
11. A contract with Marine Terminals Corporation to purchase two LPG terminal trucks, in an amount not to exceed $18,696, from the Clean Fuels Fund.
    
    
12. A contract with City of Cypress to purchase two PM10-efficient LPG street sweepers, in an amount not to exceed $38,260, from the Carl Moyer Fund.
    
    
13. A contract with the R. F. Dickson Company to purchase 14 CNG PM10-efficient street sweepers, in an amount not to exceed $1,010,000, from the Clean Fuels Fund.
    
    
14. A contract with the City of Inglewood to purchase five CNG street sweepers, in an amount not to exceed $100,000, from the Clean Fuels Fund.
    
    
15. A contract with the ADEPT Group to purchase three LPG agricultural engines used as irrigation pumps, in an amount not to exceed $48,300, from the Carl Moyer Program Fund.
    
    
16. A contract with Morner Backhoe, Inc. to purchase one new ARB certified diesel-fuel engine for a backhoe application, in an amount not to exceed $77,000, from the Carl Moyer Program Fund.
    
    
17. A contract with Riverside County Waste Management to cost-share the installation of a LNG fueling facility, in an amount not to exceed $200,000, from the Carl Moyer Program Fund.
    
    
18. A contract with Pickens Fuel Corporation to cost-share the installation of five CNG fueling facilities, in an amount not to exceed $788,800; $500,000 from the Carl Moyer Program Fund and $288,800 from the Clean Fuels Fund.
    
    
19. A contract with the City of Los Angeles to cost-share the installation of a CNG fueling facility, in an amount not to exceed $200,000, from the Carl Moyer Fund.
    
    
20. A contract with R. F. Dickson Company to cost-share the installation of a CNG fueling facility, in an amount not to exceed $180,000, from the Clean Fuels Fund.
    
    
21. A contract with Capistrano Unified School District to cost-share the installation of a CNG fueling facility, in an amount not to exceed $111,200, from the Clean Fuels Fund.
    
    
22. A contract with CalMet Services, Inc. to purchase seven natural gas refuse trucks, in an amount not to exceed $343,000, from the Clean Fuels Fund.
    
    
23. A contract with Spartan Cleanup Distributing to purchase eight natural gas refuse trucks, in an amount not to exceed $325,416, from the Clean Fuels Fund.
    
    
24. A contract with Waste Management, Inc. to purchase 41 natural gas refuse trucks in an amount not to exceed $1,733,621; $434,922 from the Carl Moyer Program Fund and $1,298,699 from the Clean Fuels Fund.
    
    
25. A contract with City of Norwalk to purchase 3 natural gas special utility trucks in an amount not to exceed $38,000 from the Carl Moyer Program Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Carl Moyer Memorial Air Quality Standards Attainment Program (Moyer Program) provides funding for the incremental cost of implementing low emission heavy-duty vehicle technologies. In recognition of the contribution of heavy-duty vehicles and equipment to the emissions inventory, and the relatively high cost in implementing low emission technologies, the Moyer Program was funded with $19 million in ARB's FY 1999-00 budget to provide incentives for low emission technologies. ARB developed overall program requirements and criteria, and allocated funds to the local air districts for program administration. The AQMD was allocated $8,349,769 from FY 1999-00 Carl Moyer Program funds. These funds were matched by the AQMD with $4,050,000 in Clean Fuels Program funds. In addition, the California Energy Commission has provided under its component of the Carl Moyer Program, $900,000 to the AQMD for fueling infrastructure development.

At its September 1999 meeting, the Governing Board approved the release of RFP #9900-06 to solicit projects for low-emission, on- and off-road vehicles and equipment and infrastructure projects. New engines, repowers and retrofits are allowed within the program. ARB required that all projects meet a $12,000/ton cost effectiveness for NOx reductions, that engines and retrofit kits must be certified to ARB low NOx standards, and that emission reductions be a minimum of 25% for retrofits and 30% for new engines. In addition, the AQMD determined that clean, alternative fuels would be given funding priority and significant high emission cost-effectiveness requirement has been established based on the high demand from the "first-year program experience".

Proposal

AQMD staff has completed review of all applications received in response to RFP #9900-06. This board letter requests approval for awards for forklifts, marine vessels, off-road equipment, and fueling facilities. Staff also proposes Class 7-8 truck awards, in addition to those awarded at the May, 2000 Board meeting. For all categories, proposals were ranked by clean fuel preference and then by cost-effectiveness. Table 1 summarizes staff's recommendation of awards for seven forklift projects for a total funding of $374,189 from the Clean Fuels Fund. Table 2 summarizes staff's recommendation of awards for 14 marine vessel projects for Carl Moyer funding of $1,529,136. Table 3 summarizes staff's recommendation of awards for twenty-seven off-road vehicles and equipment for Carl Moyer funding of $163,560 and Clean Fuels funding of $1,128,696. Table 4 summarizes staff's recommendation of awards for nine infrastructure projects for Carl Moyer funding of $900,000 and Clean Fuels funding of $580,000. Table 5 summarizes staff's recommendation for 59 Class 7-8 Trucks, for Carl Moyer funding of $472,922 and Clean Fuels funding of $1,967,115.

These recommended awards, totaling $7,115,618, complete the remaining Carl Moyer Program awards for qualified proposals under the various category allocations specified under RFP #9900-06 for FY 1999-00. Table 6 summarizes original allocations under RFP 9900-06, the amount of proposals received and recommended funding allocations.

OFF-ROAD
Forklifts
Most forklifts in use in the Basin operate with internal combustion engines (ICE), with emissions averaging 10 g/bhp-hr. According to the ARB off-road emissions inventory, there were more than 39,000 internal combustion engine (ICE) forklifts with engines greater than 50 horsepower used in industrial applications in California in 1995.

An attractive alternative to an ICE engine is an electric forklift. Replacement of ICE forklifts with zero emission equipment can reduce emissions dramatically at a very reasonable cost.

Table 1 summarizes staff's recommendation of awards for forklift projects, for a total funding of $374,189, and NOx emission reductions of over 85 tons per year.

In addition to the above projects, a demonstration program will be conducted in cooperation with Southern California Edison and the ARB to conduct an associated data collection effort to determine actual emissions benefits from the use of electric forklifts in various applications. The AQMD has entered into a Memorandum of Understanding (MOU) with Southern California Edison to formalize the data collection methodology and reporting. ARB will evaluate the information gained to assess the benefits of these projects, to resolve the outstanding concerns regarding funding electric forklifts in various capacity ranges, and determine the conditions for funding future forklifts projects in the Carl Moyer Program. There is no cost to the AQMD associated with the proposed MOU.

Marine Applications
NOx emissions from marine vessels are estimated by the ARB to be approximately 32 tons per day in the South Coast Air Basin. While marine vessel engines are similar to heavy-duty truck-type engines, there are no regulations requiring vessel owners to reduce their emissions. The Carl Moyer Program presents an opportunity to realize significant emission reductions from marine vessels by offering vessel owners incentive funds for voluntarily reducing NOx emissions from their engines. The Carl Moyer Program allows retrofitting existing equipment or the purchase of new, low-emission, diesel or alternative fuel equipment. As clean fuel engine technology has not yet matured for this type of off-road equipment category, the proposed marine projects will achieve significant emission reductions by replacing older, non-certified engines with cleaner certified diesel engines in equipment scheduled to be rebuilt.

Table 2 summarizes staff's recommendation of awards for marine vessel projects for a total funding of $1,529,136 and NOx emission reductions of over 125 tons per year.

Off-Road Equipment
NOx emissions from off-road vehicles and equipment represent 28 percent of the Basin's total NOx inventory. The Carl Moyer Program allows retrofitting existing equipment or the purchase of new, low-emission, diesel or alternative fuel equipment. In keeping with the AQMD’s alternative fuel priority, proposals for alternative fuel off-road vehicles and equipment were evaluated and ranked before diesel projects were considered.

Table 3 summarizes staff's recommendation of awards for 27 off-road vehicle projects for a total funding of $1,292,256 and NOx emission reductions of up to 35 tons per year.

Infrastructure
Alternative fuel vehicles, such as natural gas vehicles (NGVs), have demonstrated significantly lower VOC, NOx, CO and toxic emissions than diesel fueled vehicles. Lack of a well-established NG fueling infrastructure has been a major barrier to full commercialization of NG vehicle technologies.

The proposed projects will help establish a basin-wide NG fueling infrastructure for both CNG and LNG. The expected annual fuel throughput for the projects include 1,748,072 gallons of LNG and 2,673,000 gallons of CNG.

Table 4 summarizes staff’s recommendation of awards for nine clean fuel infrastructure projects for a total funding of $1,480,000; $900,000 from the Carl Moyer Program Fund, and $580,000 from the Clean Fuels Fund.

Class 7-8 Trucks

In May 2000, the Board approved funding for 78 natural gas heavy-duty trucks. Staff recommends additional award of $2,440,037 for the repower or purchase of an additional 59 trucks, as detailed in Table 5. The 59 proposed trucks achieve NOx emission reductions of up to 59.5 tons per year. Staff recommends reallocation of the original FY 1999-00 allocations to accomplish this. The proposed reallocations are discussed in the next paragraph.

Reallocation of Funds

Table 6 summarizes the FY 1999-00 Carl Moyer funding categories, dollar allocations per category as proposed under RFP 9900-06, amount of proposals received, and staff's recommendation for awards by category. Several categories were undersubscribed. Staff recommends reallocating these funds to certain categories that were oversubscribed. In particular, the Class 7-8 truck category received funding requests for more than double the amount originally allocated. Virtually all the proposals in this category were for refuse pick-up and transfer trucks. Reallocating funding will allow for the purchase or repower of 59 trucks beyond the 78 trucks approved by the Board in May 2000. Another category that was oversubscribed, and is critical to the success of alternative fuel vehicle commercialization is the infrastructure category. Proposals were received that more than doubled the allocation. Staff proposes to increase infrastructure funding from $1,000,000 to $1,480,000 to allow all qualified applicants to receive full or partial funding.

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	10.	La Opinion	19.	Precinct Reporter
2.	Black Voice News	11.	La Voz	20.	Rafu Shimpo
3.	Chinese Daily News	12.	Los Angeles Daily News	21.	Riverside Press Enterprise
4.	Eastern Group Publications	13.	Los Angeles Sentinel	22.	San Bernardino Sun
5.	El Chicano	14.	Los Angeles Times	23.	Santa Clarita Signal
6.	Excelsior, The	15.	M/W/DVBE Source	24.	State of California Contracts
7.	Inland Empire Hispanic News	16.	Orange County Register		Register
8.	Inland Valley Daily Bulletin	17.	Palm Springs Desert Sun
9.	Korea Central Daily	18.	Philippine News

A listing of open RFPs was made available to various legislative caucuses, community groups, trade organizations, chambers of commerce and other interested parties at the time the Notice Inviting Bids/Proposals is submitted for publication.

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. Notice of the RFP was 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"] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724. Staffs also conducted outreach efforts to specific sectors, such as airports and associated transportation providers, the construction and building industry, and port operations.

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 successful implementation of the Carl Moyer Program is a direct result of these Technology Advancement activities. The proposed projects will have significant emission benefits for many years. Total NOx reductions from the proposed project are approximately 305 tons per year. The vehicles and equipment proposed will operate many years, providing long-term emissions reductions.

Resource Impacts

Total cost for the proposed projects are $7,115,618. Funding for a portion of projects is from the Carl Moyer Program Fund, established as a special revenue fund resulting from the statewide Carl Moyer Memorial Air Quality Standards Attainment Program administered by ARB, and the Clean Fuel Fund. The objective of the Carl Moyer Program is to accelerate the introduction of low-emission heavy-duty engines. Funds are distributed by the ARB through local air districts. Funds from this program are restricted to be used as incentives to private companies or public agencies operating heavy-duty engines in California to cover an incremental portion of the cost of cleaner on-road, off-road, marine, and locomotive engines. Additional project funding is available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code 40448.5 and 40512 and Vehicle Code 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, 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. The AQMD cost-share for the FY 1999-00 Carl Moyer Program is included in the March 2000 update of the Technology Advancement Plan as 2000M-1 "Clean Fuels Program Match for Carl Moyer Memorial Air Quality Standards Attainment Program."

Specific allocation of funding is as follows:
 

Attachments

Table 1 – Proposed Awards for Forklifts
Table 2 – Proposed Awards for Marine Vessels
Table 3 – Proposed Awards for Off-Road Vehicles and Equipment
Table 4 – Proposed Awards for Fueling Infrastructure
Table 5 – Proposed Awards for Class 7-8 Vehicles
Table 6 – Funding Allocations

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