PROPOSAL:

Re-Issue RFP to Solicit Marine Projects for FY 1999-00 Carl Moyer Memorial Air Quality Standards Attainment Program Funding

SYNOPSIS:

On September 10, 1999, the Board approved the release of RFP #9900-06 for the Carl Moyer Memorial Air Quality Standards Attainment Program for low-emission on- and off-road vehicles and equipment, including marine, construction and agricultural equipment. However, the marine portion of the RFP, Appendix 4 – Marine Vessels, was withheld from public notification and outreach pending modification of ARB guidelines for marine projects. Those issues have now been resolved and staff recommends release of the marine portion of the RFP.

COMMITTEE:

Technology, January 28, 1999. Less than a quorum was present during the discussion of this item; the chair communicated his concurrence.

RECOMMENDED ACTION:

1. Approve issuance of Appendix 4 – Marine Vessels of RFP #9900-06, in an amount not to exceed $1.5 million, to solicit projects for Carl Moyer Memorial Air Quality Standards Attainment Program Funding.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In April 1999, the AQMD received a funding allocation of $11.3 million from the ARB for the Carl Moyer Program. The AQMD released an RFP and initiated an extensive outreach campaign announcing the program. The results was overwhelming. Proposals received totaled approximately $50 million and included a wide range of projects from both on- and off-road sectors. On-road truck awards totaling $4,996,034 were approved at the August 1999 Governing Board meeting. At the September 1999 Governing Board meeting, the Board approved the award of $6,276,986 in Carl Moyer Program funds.

Governor Davis and the Legislature have placed $19 million in ARB's FY 1999-2000 to continue this incentive program for low-emission heavy-duty vehicles and $2 million in CEC's Budget to support fueling infrastructure. The AQMD expects to receive $8.55 million from ARB and $900,000 from CEC, for an expected total of $9.45 million. After the Board approved the release of RFP #9900-06, the ARB informed District staff that they were in the process of re-assessing a number of parameters within marine vessel criteria, and additional guidelines could be issued for the Carl Moyer Program. These changes included baseline emissions for existing engines, allowable horsepower increases for new engines, and testing requirements for emissions reduction verification.

Now that the program criteria changes for marine vessels have been clarified with the ARB, staff desires to issue Appendix 4 – Marine Vessels, the portion of the RFP dealing with marine vessels. This appendix includes background information, selection criteria, sample calculations and application forms.

Proposal

Staff proposes that the AQMD release Appendix 4 – Marine Vessels of RFP #9900-06 to solicit marine projects for FY 1999-2000 Carl Moyer Program funding, at a total cost not to exceed $1.5 million. Staff proposes that AQMD provide the $1.5 million allocation out of from the $8.55 million received from ARB. The proposed Appendix 4 – Marine Vessels of RFP #9900-06 will solicit projects for marine and port applications. New clean fuel and diesel engines, repowers and retrofits are allowed within the program. Should insufficient qualifying proposals be received in this project area, the AQMD will reserve the right to reallocate funds to another category or subcategory.

ARB requires that all projects meet a $12,000/ton cost-effectiveness for NOx reductions, and the emission reductions be a minimum of 25 percent for retrofit applications and 30 percent for repowers or new engines. Staff proposes that alternative fuel proposals submitted under RFP #9900-06 be given preference for funding. Further, staff proposes a more stringent cost-effectiveness criteria of $2,000 per ton for the marine sector based on experiences derived from the first-year’s solicitation. Proposals received under this category will be ranked by their cost-effectiveness to achieve the maximum potential emission reduction.

Projects must operate at least 75% within the waters of the South Coast Air Basin boundaries. Also, all applicants will be required to submit fuel receipts for at least the last 12 months of operation at the time of application.

Proposals for this category will be due no later than 5:00 p.m., Friday, April 21, 2000. This will provide ample time (2 months) for proposers to coordinate their plans with engine manufacturers, fuel providers, and others necessary to complete and submit proposals.

The staff expects to finalize the review and evaluation of the proposals and recommend for Board approval of awards on or before the July, 2000 meeting, contingent upon approval and awards of the required funds from ARB and CEC.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids will be 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

Additionally, potential bidders will be 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 will be 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. Staff will also conduct outreach efforts to 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 projects proposed for funding under RFP #9899-28 will result in NOx emissions reductions of over 400 tons per year. Projects funded as a result of RFP #9900-06 are expected to yield similar benefits.

Resource Impacts

The AQMD is expected to receive from the ARB and CEC, combined, approximately $9.45 million of the available Carl Moyer funds for FY 1999-2000. The Carl Moyer Program requires that the local air district provide matching funds for engine, vehicle and equipment incentives on a 1:2 basis. Staff estimates that the AQMD can provide adequate a local match to be included in the proposals to ARB and CEC as appropriate, including the proposed $4.05 million direct funding from Clean Fuels Program Fund, program administration support, and other qualified Clean Fuels Program projects. Up to 15% of the match is allowed as in-kind costs.

Monies received from ARB and CEC will be placed in the Carl Moyer Program Fund. 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, locomotive engines and fueling infrastructure.

Attachments

1) Appendix 4 – Marine Vessels of RFP #9900-06 – FY 1999-00 Carl Moyer Memorial Air Quality Standards Attainment Program

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