South Coast Air Quality Management District

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Execute Contracts for AQIP Proposals Received During the Third and Fourth Quarters of 1999 and First Quarter of 2000

SYNOPSIS: 

Rule 2202 - On-Road Motor Vehicle Mitigation Options was adopted on December 8, 1995. One of the compliance strategies under Rule 2202 allows employers to invest in the AQIP. Monies received are placed in a restricted account to fund programs that result in equivalent emission reductions that would otherwise have been achieved by the participating employers. Staff evaluated the proposals received during the third and fourth quarters of 1999 and the first quarter of 2000. This action is to recommend three for funding. The amount available for these three quarters is $580,614.

COMMITTEE: 

Mobile Source, July 28, 2000. Less than a quorum was present during the discussion of this item; those Committee Members who were present communicated their concurrence.

RECOMMENDED ACTION:

Authorize the Chairman to execute three respective contracts for a total amount not to exceed $507,988 from the AQIP Special Revenue Fund to obtain mobile source emission reductions with OceanAir Environmental for an amount not to exceed $352,426; Stater Bros. Markets for an amount not to exceed $99,018 and The Vons Companies, Inc. for an amount not to exceed $56,544.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Rule 2202 AQIP allows subject employers to participate by electing to invest in an AQMD-administered restricted fund. Investment can be either $60 annually per employee reporting to the worksite during the 6:00 a.m. to 10:00 a.m. peak window, or $125 triennially per employee. The restricted monies are to be used by the AQMD to fund proposals that achieve mobile source emission reductions that would otherwise have been achieved by implementing a rideshare program. This Board letter contains a discussion regarding the disbursal of funds from the AQIP compliance option for the third and fourth quarters of 1999 and the first quarter of 2000.

Upon registering under this option and submitting the designated investment amount, an employer is considered to be in compliance with the Rule and there is no need for the employer to take further action to reduce mobile source emissions. The collected monies are used to fund alternative mobile source emission reduction strategies that reduce mobile source emissions at a more cost-effective rate that could potentially result in greater overall emission reductions.

The first quarter of 2000 submittal period ended on May 5, 2000 with eight employers participating in the AQIP program. The total AQIP funds received during this period were $20,520, which includes both annual and triennial participants (see Attachment 1). Totals of $288,370 and $102,620 were received from the third and fourth quarters of 1999 respectively. In addition, $169,104 is being carried forward from the previous quarters. Therefore, the total amount available for this quarter is $580,614 (see Attachment 1, Table 4). Staff recommends that $507,988 be used to purchase emission reductions to satisfy the one-year and the three-year requirements for the three quarters.

Proposal Evaluation

During the bidding process of the first quarter of 2000, eight proposals were received requesting funds ranging from $35,845 to $580,614. Eighteen proposals were received during the third and fourth quarters of 1999, requesting funds ranging from $4,920 to $470,000. Eight of these proposals were subsequently withdrawn. The remaining project proposals received can be grouped in four categories: Old-Vehicle Scrapping, Transportation Demand Management, Alternate Fuel, and Other. Attachment 2 gives a summary of emission reduction targets and the emission reduction credit balances. Attachment 3 gives a summary of each proposal received and funds requested. Attachment 4 provides an overall summary of the proposals by type, listing the proposals received, funds requested, total proposal costs, and emission reductions expected from each proposal.

All proposals submitted were reviewed and scored based on the information in the proposal as submitted to the AQMD, and according to the selection criteria described in the RFP. The evaluation panel consisted of six AQMD employees: four from Transportation Programs; one from Planning and one from Technology Advancement; one Manager, two Program Supervisors, two Air Quality Specialists and one Transportation Specialist. The panel consisted of two females and four males; one Asian Indian, two Caucasian, and three Hispanic. Attachment 5 discusses the selection criteria, the scoring process, and the overall ratings for each proposal.

Attachment 5 also provides a summary of the proposal rankings. While cost-effectiveness is the most heavily weighted criteria for determining ranking, the amount of funding available and the emission reductions needed ultimately determine the recommendation. The proposals from OceanAir Environmental, Stater Bros. Markets and The Vons Companies, Inc. would together provide the most emission reductions and help build NOx credits in the Emission Bank.

The following proposals are recommended for approval (as detailed in Attachment 6):

1. OceanAir Environmental (Arapaho)                 $352,426

OceanAir Environmental proposes to generate emission reductions by repowering pusher tug boat Arapaho based in the Port of Long Beach with low-emissions diesel engines. The cost-effectiveness of this proposal is $1.50 per pound.

2. Stater Bros. Markets                                          $99,018

Stater Bros. Markets propose to generate emission reductions by replacing six existing diesel yard spotting tractors with six LPG powered yard tractors. The cost effectiveness of this proposal is $1.00 per pound.

3. The Vons Companies, Inc.                                  $56,544

The Vons Companies, Inc. proposes to generate emission reductions by replacing eight diesel powered yard spotting tractors with LPG powered vehicles. The cost effectiveness of this proposal is $0.80 per pound.

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

Additionally, potential bidders were identified from the Los Angeles County MTA and Caltrans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; the 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" icon] and AQMD’s 24-hour telephone message line for bidders (909) 396-2724.

Bidders Conferences were convened at the AQMD on September 2, 1999, December 2, 1999 and March 30, 2000 to highlight the requirements of the proposals and to answer questions from the prospective bidders in attendance.

Resource Impact

Not applicable.

Attachments

1. AQIP Funding and Participation
2. Summary of Emission Reduction Targets and Credit Balances
3. Summary of AQIP Proposals Received
4. Summary of Proposals By Type
5. Summary of Proposal Ratings
6. Recommendation for Funding

ATTACHMENT 1

AQIP - 1st Quarter 2000

TABLE 1

Funds Received (as of March 31, 2000)

TABLE 2

Annual Participation

TABLE 3

Triennial Participation

TABLE 4

Total Available Funding

ATTACHMENT 2

TABLE 1

Emission Reduction Targets
(Pounds)

TABLE 2

Emission Reduction Credit Balances
(Pounds)

ATTACHMENT 3

Summary
Air Quality Investment Program
Proposals Received

The following proposals were received in response to the AQIP Request for Proposals (RFP) on or before May 5, 2000. The proposals are not listed by classification or rank.

1. Ecology Auto Wrecking (3^rd Qtr. 99) $266,000 
                                             County: All

Ecology Auto Wrecking proposes to generate MSERCs through an old-vehicle scrapping program and provide triennial credits. Based on the information provided, the proposal is estimated to have a cost-effectiveness of $2.06 per pound.
(Not funded.)

2. Pick Your Part Auto Wrecking (3^rd Qtr. 99) $470,000¹
                                                        (4^th Qtr. 99) $160,000¹
                                                        (1^st Qtr. 2000) $580,614
                                                        County: All

Pick Your Part Auto Wrecking proposes to generate MSERCs by eliminating pre-1982 vehicles through old-vehicle scrapping. The cost-effectiveness of these proposals range from $1.71 to $1.83. Third and fourth quarter proposals were withdrawn. (Not funded.)

¹ Withdrawn June 5, 2000

3. Bike Stations, Inc. (4^th Qtr. 99) $4,920
                                     County: Los Angeles

Bike Stations, Inc. proposes to generate emission reductions by offering incentives to commuters to using bicycles instead of automobiles in the City of Long Beach. The cost effectiveness of this proposal is $95.54 per pound. (Not funded.)

4. OceanAir Environmental (Larcona, 3^rd Qtr. 99) $402,652²
                                              (Redando, 3^rd Qtr. 99) $371,949²
                                              (Arapaho, 3^rd Qtr. 99) $352,426
                                              (Hermosa, 3^rd Qtr. 99) $195,316²
                                              (Elsa, 3^rd Qtr. 99) $84,422²
                                              (Miss Natalie, 3^rd Qtr. 99) $69,204²
                                              (Miss Elsa & Miss Natalie, 4^th Qtr. 99) $246,424²
                                              (Project 1, 1^st Qtr. 2000) $59,848
                                              (Project 2, 1^st Qtr. 2000) $54,471
                                              (Project 3, 1^st Qtr. 2000) $35,845
                                              (Project 4, 1^st Qtr. 2000) $603,421
                                              County: Los Angeles

OceanAir Environmental proposes to generate emission reductions by repowering pusher tug boats/barges based in the Port of Long Beach with low-emissions diesel engines. The cost-effectiveness of this proposal ranges from $1.35 to $2.80 per pound. (Arapaho recommended for funding.)

² Withdrawn June 5, 2000

5. Earthguard Environmental Services (3^rd Qtr. 99) $76,076
                                                                (Opt A, 4^th Qtr. 99) $31,470
                                                                (Opt B, 4^th Qtr. 99) $95,220
                                                                (Opt C, 4^th Qtr. 99) $80,000
                                                                (Opt D, 4^th Qtr. 99) $160,000
                                                                (1^st Qtr. 2000) $254,703
                                                                County: Los Angeles

Earthguard Environmental Services proposes to provide District approved Emission Reduction Credits (ERCs) generated by "Process Change." Options C and D were offered over 30 years. The 1^st Quarter, 2000 proposal offers emission reductions from a combination of both ERCs and repowering of a tugboat. The quantification of these ERCs were verified by the District according to the methodology contained in Regulation XIII, Rule 1306. The cost-effectiveness of this proposal ranges from $1.10 to $2.92 per pound. (Not funded.)

6. Stater Bros. Markets (4^th Qtr. 99) $99,018

Stater Bros. Markets propose to generate emission reductions by replacing six existing diesel yard spotting tractors with six LPG powered yard tractors. The cost effectiveness of this proposals is $1.00 per pound. (Recommended for funding.)

7. City of Norwalk (4^th Qtr. 99) $173,128

City of Norwalk proposes to generate emission reductions by operating a peak-hour shuttle between the Whittier Historic Depot and the Norwalk/Santa Fe Springs Transportation Center (Metrolink Station). The cost effectiveness of this proposal is $56.12 per pound. (Not funded.)

8. The Vons Companies, Inc. (1^st Qtr. 2000) $56,544

The Vons Companies Inc. proposes to generate emission reductions by replacing diesel powered yard spotting tractors with LPG powered vehicles. The cost effectiveness of this proposal is $0.80 per pound. (Recommended for funding.)

9. Spartan Cleanup Corporation (1^st Qtr. 2000) $431,770

Spartan Cleanup Corporation proposes to generate emission reductions by replacing 12 pre-1990 gasoline powered waste hauling trucks with 10 CNG powered heavy-duty vehicles. The cost effectiveness of this project is $4.94 per pound. (Not funded.)

ATTACHMENT 4

Proposal Summary By Type

ATTACHMENT 5

Summary

Proposal Ratings

All proposals submitted were reviewed and scored according to the selection criteria in the Board-approved RFP. Points were also allocated for "Local Business," "Small Business," DBVE and DBVE "Joint Ventures."
 

ATTACHMENT 6

TABLE 1

Proposals Recommended for Funding
Anticipated Emission Reductions
(Pounds/Year)

TABLE 2

Proposals Recommended for Funding
Funding Request

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