BOARD MEETING DATE: February 18, 2000 AGENDA NO. 9
Approve Change in Contractor for 14 EVCharge Applications within MSRC's FY 1997-99 AB 2766 Discretionary Fund Work Program; and Approve Additional Funding for Statewide EV Infrastructure Incentive Program within MSRC's FY 1999-00 AB 2766 Discretionary Fund Work Program
SYNOPSIS:
At its November 1999 meeting, the Board approved 61 EVCharge applications within the MSRC's FY 1997-99 Work Program, including 14 applications to Edison EV. However, Edison EV has exited the EV supply business and the 14 applications have been sold to the Sacramento Metropolitan Utility District. The MSRC recommends approval of this change in contractor. In addition, the MSRC's FY 1997-99 Work Program included $250,000 for a statewide EV Infrastructure Incentive Program administered by the CEC. The FY 1999-00 Work Program included an additional $375,000 funding for this program. The MSRC recommends the Board approve a $375,000 contract with CEC as part of its FY 1999-00 Work Program.
COMMITTEE:
Mobile Source Air Pollution Reduction Review Committee
Unanimously Approved January 27, 2000
RECOMMENDED ACTION:
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 an account to be allocated pursuant to a work program developed and adopted by the MSRC and approved by the AQMD Governing Board.
EVCharge Applications
Background
The second year of the MSRC’s two-year FY 1997-99 AB 2766 Discretionary Fund Work Program included the $2 million EVCharge Program. EVCharge is the second phase of EV charging infrastructure planning and implementation, intended to reduce mobile source emissions by providing public charging infrastructure to support EV usage in the Basin. Through a simplified application process, this program provided matching funds to construct EV charging stations in underserved areas within four eligible categories.
The six-month application process began February 12, 1999, and ended on August 31, 1999. All projects, excluding new development projects and those with signage installation issues, must be completed within six months of contract execution. New development projects and signage must be completed within 12 months of contract execution.
Proposal
At its November 5, 1999, meeting the Board approved 61 EVCharge applications totaling $1,244,017.40. Included in those 61 applications were 14 applications awarded to Edison EV, a California corporation that sold, installed and serviced EV supply equipment. The 14 applications were submitted by Edison EV on behalf of various businesses located within the geographical boundaries of the SCAQMD. Subsequent to the submission and approval of these applications, Edison EV ceased operation. (Due to this development, contracts were not executed.) To ensure that the customers of Edison EV could still obtain EV infrastructure services, Edison International, the indirect parent company of Edison EV, sold Edison EV’s assets and obligations, including the 14 unexecuted contracts, to the Sacramento Municipal Utility District (SMUD). SMUD, an active promoter of EV development, has agreed to assume all MSRC obligations, contract terms and conditions. The 14 applications totaling $212,207.27, all within the South Coast Air Basin, are listed below.
At its January 27, 2000, meeting the MSRC approved Edison International’s request for the MSRC to recognize the sale of Edison EV’s assets to SMUD and to execute 14 contracts with SMUD. At this time the MSRC requests: 1) that the Board approve its recommendation to execute contracts with SMUD; 2) the authority to adjust contract costs up to an additional 10%; and 3) authorization to withdraw project approval of individual projects in cases where bidders are not able to successfully negotiate a contract.
When the Board approved the EVCharge application process on February 13, 1999, authority was granted to the AQMD's Procurement Manager to execute agreements, subject to the Board's approval of the projects as part of the MSRC's FY 1997-99 Work Program.
EV Charge Applications/Site Owners
California Energy Commission Contract
Background
In May 1998 the MSRC approved a $250,000 sole-source contract with the CEC to co-sponsor the CEC’s statewide program to provide incentives for the installation of EV charging infrastructure at residences or work places. The program was structured such that the CEC co-funded up to 40% ($500 per installation), the auto manufacturers contributed up to 40% ($500 per installation), and the MSRC funds provided up to 20% ($250 per installation). The maximum incentive available for any installation was 50% of the total cost of the off-board charging equipment and its installation. The contract end date was scheduled for June 30, 1999.
As part of its FY 1999-00 Work Program, the MSRC approved an extension of the CEC’s contract until June 30, 2001. It also allocated an additional $375,000 to the extended contract. However, based upon program needs at the time the original contract was scheduled to end, the CEC chose not to extend the contract nor invoice for the added $375,000. However, the CEC has recently identified a financial need for the $375,000 based upon automaker infrastructure installation projections and the announced contract with Ford and the United States Post Office for the single largest EV fleet in California. Therefore, the CEC requested that a new contract be executed to use the remaining $375,000 allocated to the program.
Proposal
At its January 27, 2000, meeting the MSRC approved a sole-source contract with the CEC for $375,000 for use on its infrastructure program following the same parameters outlined in the previous contract. The contract end date will be June 30, 2001.
Sole-Source Justification
Section VIII (B)(2) of the AQMD’s Procurement Policy and Procedure identifies four major provisions under which a sole-source award may be justified. This request for sole-source award is made under provision B.2.d. that supports sole-source awards when "other circumstances exist which in determination of the Executive Officer require such a waiver in the best interest of the AQMD." Specifically, B.2.d. (1): Project involving cost sharing by multiple sponsors. In this case, the MSRC has been asked to co-fund a statewide project sponsored by another government agency, the CEC. The CEC will provide administration and oversight of the program at their cost.
Resource Impacts
The AQMD acts as fiscal administrator to 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 contract will be drawn from this fund. These contracts will have no fiscal impact on the AQMD’s operational budget.
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