South Coast Air Quality Management District

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Approve Transit Bus, Heavy-Duty Vehicle, and Transportation Control Measure Projects as Part of FY 2000-01 AB 2766 Discretionary Fund Work Program; Authorize MSRC Authority to Adjust Project Costs Up 5%; and Authorize Board Chairman Authority to Execute Agreements

SYNOPSIS: 

As part of its FY 2000-01 AB 2766 Discretionary Fund Work Program, the MSRC issued six RFPs and one RFQ seeking proposals for transit bus, heavy-duty vehicle and TCM projects. The seven solicitations closed at 5:00 p.m. on October 5, 2000, at which time 46 eligible proposals had been received. At this time the MSRC requests Board approval of several projects as part of the FY 2000-01 AB 2766 Discretionary Fund Work Program. The MSRC also requests authority to adjust project costs up to 5 percent and authority for the Board Chairman to execute agreements.

COMMITTEE: 

Mobile Source Air Pollution Reduction Review Committee,
November 30, 2000, Approved Unanimously

RECOMMENDED ACTIONS:

1. Approve the FY 2000-01 AB 2766 Discretionary Fund Work Program, as set forth in this Board letter and described in the attachments, totaling $17,276,563, broken down as follows:

1. Allocate $12,276,563 to fund 29 transit bus, heavy-duty vehicle, and TCM projects;
   
   
2. Continue to allocate $2 million to light-duty buydown incentives as part of the FY 2000-01 AB 2766 Discretionary Fund Work Program; and
   
   
3. Continue to allocate $3 million of the FY 2000-01 AB 2766 Discretionary Fund Work Program for the Alternative Fuels Subvention Fund Match Program, with specific projects funded under this program to be approved by the AQMD Governing Board at a later date.

2. Authorize the Board Chairman the authority to execute agreements with the proposers as set forth in this Board letter and the attachments for the FY 2000-01 Work Program;
   
   
3. Authorize MSRC the ability to adjust up to an additional 5%, as necessary, the funding of individual projects included in the attachments; and
   
   
4. Authorize the MSRC to withdraw approval of individual projects in cases where bidders are not able to successfully negotiate a contract; unused funds will return to the Discretionary Fund for distribution to future work programs.

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.

At its August 18, 2000 meeting the AQMD Governing Board approved in concept the FY 2000-01 AB 2766 Discretionary Fund Work Program, including the release of six RFPs and one RFQ, as follows:

TCM Programs ($1 million target funding)

• Voluntary Employer-Based Rideshare Incentive RFP #P2001-04 ($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;
  
  
• Information Technology/Advanced Traveler Management Information Services (ATMIS) Trip Reduction Strategies RFP #P2001-05 ($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.
  
  
• Employer-Based Bicycle Projects RFP #P2001-06 ($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.
  
  
• Transit-Oriented Development Land-Use Strategies RFP #P2001-07 ($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.
  
  
• Regional Electric-Assist Bicycle Incentive RFQ #Q2001-02 ($100,000): qualifies vendors to participate in an incentive program providing up to $250 towards 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.

Clean Fuels Programs ($13.5 million target funding)

• Alternative Fuel Transit Bus RFP #P2001-09 ($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.
  
  
• On-/Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction RFP #P2001-08 ($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 $1.625 million each for public and private heavy-duty vehicle fleets.
  
  
• Allocation to Existing Buydown Programs for Light-Duty Alternative Fuel Vehicles ($2 million); this allocation did not result in a solicitation, but was 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. The Work Program in concept included an allocation of $666,000 to ZEVs and $1,334,000 for ULEVs.
  
  
• Alternative Fuels Subvention Fund Match Program ($3 million): For local governments receiving AB 2766 City Subvention Funds, this program provides a 50-75% match to their subvention dollars for alternative fuels infrastructure and medium-/heavy-duty alternative fuel vehicles (the Program Announcement & Application, #PA2001-01, for the Match Program was released in September 2000, one month after the initial RFPs and RFQ were issued).
  
  
• Reserve Allocation to Augment Existing School Bus Program ($1 million): funding set aside to potentially augment the current program which buys down the cost of new dedicated CNG school buses by $40,000 per vehicle, pending development of the state's school bus program.

Outreach

In accordance with the AQMD's consulting and contracting policies, a public notice advertising these RFPs and RFQ was published on two different days in 25 newspapers and publications, including several targeting minorities.

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

In addition to the AQMD's standard practices, a brochure announcing these funding opportunities was mailed to over 1,600 interested parties on the MSRC's mailing list, as well as to the Black and Latino Legislative Caucuses, City Managers, Chambers of Commerce, the AQMD's Ethnic Community Advisory Group, and business associations. A targeted mailing list of bicycle vendors throughout California was assembled for a specialized mailing of the Regional Electric-Assist Bicycle Incentive RFQ, and MSRC staff obtained a list from the AQMD’s Transportation Programs division containing interested parties and rideshare groups for a specialized mailing of the Voluntary Employer-Based Rideshare Incentive RFP.

In addition, the MSRC's Heavy-Duty Technical Outreach consultants, a team of heavy-duty vehicle experts, conducted individual outreach to the smaller municipal transit agencies to encourage better participation under the transit bus program.

More than 250 copies of the seven solicitations were mailed to interested parties by MSRC staff. Another dozen or more were e-mailed to potential bidders by MSRC staff. In addition, interested parties took advantage of the MSRC's website and registered online to download copies of the RFPs and RFQ.

Bidders' Conferences

To assist potential bidders in submitting qualified proposals, a technical workshop for the smaller municipal transit agencies and first-time transit applicants was conducted in August and individual bidders’ conferences for each solicitation were conducted in early September. Over 60 individuals attended the workshop and conferences.

Proposals Received and Evaluation Process

The seven solicitations closed at 5:00 p.m. on October 5, 2000, at which time 47 proposals had been received (one of which was later deemed ineligible because it did not fit the category under which it applied). The eligible proposals received by the deadline are as follows:

Per the MSRC's adopted Guidelines for AB 2766 Discretionary Fund Proposal Submission and Evaluation Process, the MSRC's Technical Advisory Committee (MSRC-TAC) formed several evaluation subcommittees to review, evaluate, score and rank the proposals, using the criteria within each solicitation. Based upon the results of the evaluation, the MSRC-TAC developed its funding recommendations in the form of two lists per category. The first list includes all projects deemed to be worthy of funding and the second list includes all projects not recommended for funding under any circumstance.

Panel Composition

The evaluation subcommittees for the MSRC-TAC included the following:

Transit Bus Evaluation Subcommittee: Chair Ken Koyama, representing CEC; Sylvia Oey, representing ARB; Marilyn Williams, representing RCTC; and George Karbowski, representing LACMTA.

Heavy-Duty Evaluation Subcommittee: Chair Doug Kim, representing LACMTA; Sylvia Oey, representing ARB; Diana Kotler, representing Orange County Cities; Gretchen Hardison, representing City of Los Angeles; and Ken Koyama, representing CEC.

Bicycles Evaluation Subcommittee: Chair Cheryl Collier, representing SCR; Gretchen Hardison, representing City of Los Angeles; Melinda Bowman, representing Orange County Board of Supervisors; and Vince Mastrosimone, representing Los Angeles County Cities.

Rideshare/ATMIS Evaluation Subcommittee: Chair Greg Neal, representing Riverside County Board of Supervisors; Antonio Thomas, representing the SCAQMD; and Michelle Kirkhoff, representing SANBAG.

Land-Use Evaluation Subcommittee: Chair Marilyn Williams, representing RCTC; Dave Cowardin, representing Los Angeles County Board of Supervisors; Greg Neal, representing Riverside County Board of Supervisors; Bob Huddy, representing SCR; and Dave Ashuckian, representing CEC.

Proposal

At its November 30, 2000 meeting, the MSRC considered recommendations from its Technical Advisory Committee on the projects proposed for funding under this Work Program.

Because of the demand in the heavy-duty and transit categories and the MSRC's desire to fund more projects in these categories, the MSRC took several actions to make available additional funds. First, they recognized uncommitted monies totaling $2,276,563 in turnback funds and interest. Second, they deobligated $500,000 that it had set aside four years ago for a potential vehicle scrapping program in conjunction with the ARB, with the caveat that the next work program would consider scrapping as a priority. Third, they released $1 million originally reserved in this Work Program for the CNG school bus buydown program in light of the $50 million state program being administered by the ARB (the MSRC's existing CNG school bus buydown program continues through June 30, 2001, and has $948,000 in available funding remaining). Finally, the MSRC released $400,883 in monies not being recommended for funding under the TCM categories.

These actions provided an additional $4,177,446 to fund additional projects within the heavy-duty and transit categories. In an effort to support the AQMD's fleet rules, the MSRC decided the following:

1. to allocate an additional $2,914,164 (above and beyond the $4.25 million originally targeted) to the transit category, thus ensuring that all smaller transit operators and first-time transit applicants could be funded; and
   
   
2. to allocate an additional $1,263,282 (above and beyond the $3.25 million originally targeted) to the heavy-duty category, thus ensuring that all public fleet projects were funded as well as a portion of two more private fleet projects.

In summary, the MSRC unanimously approved the following as part of its FY 2000-01 Work Program, further details on which are provided in the attachments:

In addition to the above $12,276,563, the MSRC's FY 2000-01 Work Program includes $2 million to continue implementation of its light-duty buydown incentives for ZEVs and ULEVs. However, because there is currently very low ZEV product availability, and because ULEV demand is high, the MSRC has allocated the $2 million to the ULEV buydown. To clarify the intent of its action, the MSRC adopted a resolution reaffirming its commitment to supporting the region's ZEV program (there remain some monies available from a prior work program allocation for ZEV buydown in case product becomes available).

Finally, the FY 2000-01 Work Program includes $3 million for its Alternative Fuels Subvention Fund Match Program, the program announcement and application for which was released in September 2000. Applications will be accepted under this program from February 1, 2001, through June 30, 2001. Recommendations on specific projects under the Match Program will be submitted monthly to the Governing Board as they are received as part of the FY 2000-01 Work Program.

This action is to request approval of the FY 2000-01 Work Program, as described in this Board letter and the attachments, as follows: a) an allocation of $12,276,563 to fund 29 transit bus, heavy-duty vehicle, and TCM projects; b) continuing an allocation of $2 million to the light-duty buydown incentives for a $3,000 incentive towards certified ULEVs; and c) continuing an allocation of $3 million for the Alternative Fuels Subvention Fund Match Program, with specific projects funded under this program to be approved by the Board at a later date. This results in a FY 2000-01 Work Program totaling approximately $17.2 million.

In some cases the full amount requested by a proposer is not recommended for funding or the proposed scope of work has been modified. This is consistent with the MSRC's administrative policies, which allow the MSRC the right to approve a portion of the proposers' scope of work and/or funding request. In those cases where the proposed funding level or scope of work has been modified by the MSRC, and the proposer cannot perform the project as recommended, the MSRC requests the authority to rescind the funding commitment for that proposer and retain the funds in the Discretionary Fund account for future work programs.

The MSRC also requests authority to adjust the funds allocated to each project by up to 5% of a project's recommended funding as specified in the attachments. The Board has granted this authority to the MSRC for all past work programs.

Finally, the MSRC requests that the Board authorize the AQMD Board Chairman the authority to execute agreements with the proposers set forth in this Board letter and the attachments for the FY 2000-01 Work Program.

Resource Impacts

The AQMD acts as fiscal administrator for the AB 2766 Discretionary Fund Program (Health & Safety Code Section 44243). Money received for this program is recorded in a special revenue fund (Fund 23), and the contracts will be drawn from this fund. These contracts will have no fiscal impact on the AQMD’s operational budget.

Attachments

-Individual Funding Spreadsheets for Each Category
-Individual Summary Sheets for TCM Projects

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