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Execute Contracts for Class 7 & 8 On-Road Trucks Projects Awarded Under Carl Moyer Memorial Air Quality Standards Attainment Program

SYNOPSIS:

On January 11, 2000, proposals were received in response to RFP #9900-06 for the Carl Moyer Memorial Air Quality Standards Attainment Program. Staff recommends award of contracts to fund class 7 & 8 on-road trucks. Additionally, the state Legislature mandated all funding awards for the FY 1998-99 Carl Moyer Program to have fully executed contracts by June 30, 2000. Several companies awarded funding under that Program are unable to commit to their proposed projects before that date. Staff recommends using these returned funds for applications received through the FY 1999-00 Carl Moyer Program solicitation. Total cost to the Carl Moyer Program Fund will be $3,355,046 including all returned funds.

COMMITTEE:

Technology, March 24, 2000. Less than a quorum was present during the discussion of this item; the Chair and Vice Chair communicated their concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

RECOMMENDED ACTION:

Authorize the Chairman to execute the following contracts from the Carl Moyer Program Fund:

1. A contract with Burrtec Waste Industries, Inc., in an amount not to exceed $1,523,720, to purchase 55 new dual fuel trucks.
2. A contract with Waste Management Inc., in an amount not to exceed $451,326, to repower 6 trucks to natural gas.
3. A contract with Browning Ferris Industries, in an amount not to exceed $400,000, to purchase 10 new dual fuel trucks.
4. A contract with CalMet Services, Inc., in an amount not to exceed $980,000, to repower 20 trucks to natural gas.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In recognition of the contribution of heavy-duty vehicles to the emissions inventory, and the difficulty in implementing low emission technologies, $25 million was placed in ARB’s FY 1998-99 budget and $19 million in the FY 1999-00 budget to provide incentives for low emission technologies. 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. ARB developed overall program requirements and criteria, and allocated funds to the local air districts for program administration. The AQMD was allocated $11,275,020 from FY 1998-99 and $8,550,000 from FY 1999-00 Carl Moyer Program funds.

At its April 1999 meeting, the Governing Board approved the release of RFP #9899-28 to solicit projects for low-emission, on- and off-road vehicles and equipment. 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. The state Legislature mandated all funding awards made under the FY 1998-99 Carl Moyer Program must have fully executed contracts by June 30, 2000.

At its August 13, and September 10, 1999 meetings, the Governing Board approved contract awards for proposals submitted within the On-Road Clean Fuel Truck portion of RFP 9899-28. This board letter addresses modifications of some of those awards as well as requests approval of shifting unused FY 1998-99 Carl Moyer Program funds to the FY 1999-00 Carl Moyer Program fund.

Proposal

Contracts for projects funded under the FY 1998-99 Carl Moyer Program must be fully executed by June 30, 2000. This contracting requirement was mandated by the state Legislature. Of those applicants receiving awards from that solicitation, Specialty Transportation Services, Inc., (STS) has indicated they are unable to commit to the proposed project before that date. STS had been awarded $616,480. SunLine Transit has determined that it will continue with plans to purchase new CNG buses but is no longer able to repower 3 diesel buses as specified in its proposal. An award had been made to them in the amount of $60,075. Of that amount, SunLine is returning $24,075. The City of Anaheim had been awarded $155,500 for the incremental costs of purchasing electric hybrid buses, but cannot successfully contract with a manufacturer for the proposed buses. The L.A. County Sanitation Districts were awarded $190,000, but received the same amount of funding from an identical proposal submitted to the Mobile Source Air Pollution Reduction Review Committee. Finally, the ARB provided the AQMD an additional $2,571 following balancing of their books. The total amount of unused funds from these four applicants and the ARB is $988,626.

From that same solicitation, Burrtec Waste Industries, Inc., (Burrtec) had been awarded $375,592 in funding for the repower/retrofit of 8 existing trucks with Caterpillar 3126 and C-12 engines to dual-fuel compressed and liquefied natural gas (CNG/LNG) capability and to purchase five new Mack E7-300 trucks with LNG capability. Instead of purchasing the five new Mack trucks, Burrtec will now purchase five new Peterbilt chassis with CAT 3126B dual-fuel engines producing the same emission reductions but at a lower cost, thereby providing a higher cost effectiveness. The net unused balance creates a difference of $13,480. Hence the total unused balance of all companies returning funds is $1,002,106.

Staff proposes that the entire unused amount of $1,002,106 be awarded to Burrtec Waste Industries, Inc., (Burrtec) for their applications received under the recent FY 1999-00 solicitation, in addition to the award received under the FY 1998-99 solicitation. Staff recommends this for several reasons. Burrtec received funding from the FY 1998-99 solicitation due to the cost-effective nature of the work they proposed. Burrtec submitted an excellent application again for the FY 1999-00 solicitation and has ranked very high in the cost-effectiveness ratings for its category, ensuring that they will receive funding for all of the trucks proposed. Additionally, Burrtec is familiar with the contracting process and, due to the state-mandated time frames in which a contract must be executed, could execute the contract within the requisite time frame.

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. Proposal submissions for class 7 & 8 on-road clean fuel truck projects have been reviewed and ranked by staff in order of cost-effectiveness. Only the most cost-effective submissions were considered for funding. Staff proposes that the first Carl Moyer Program awards be made to projects for class 7-8 trucks. The proposed project awards will fund the purchase of new natural gas refuse trucks and the repower and retrofit of existing refuse trucks to natural gas. The proposed projects reflect a diversity of operating cycles and geographical distribution of private fleets. The specific projects proposed for funding are as follows:

*includes 13 trucks originally awarded funding under FY 1998-99 Carl Moyer Program Funding

Burrtec applied for the purchase of 42 new dual fuel waste transfer and refuse collection trucks. All proposals were reviewed by AQMD staff for completeness and accuracy, to determine compliance with ARB criteria and calculate cost effectiveness. Burrtec is a private company that hauls refuse throughout the Inland Empire. They operate approximately 175 trucks at five depots in Riverside, Fontana, Victorville, Irwindale and Yucaipa. Burrtec estimates that each of their trucks average 82,000 miles annually and consume approximately 17,000 gallons of diesel fuel per year. The repower/retrofit program will achieve NOx emissions reductions of over 40 tons per year at an average cost effectiveness of $3,247 per ton.

The total contract amount with Burrtec will be comprised of the unused portion of FY 1998-99 Carl Moyer Program funds of $1,002,106; plus the original award to Burrtec from that same solicitation in the amount of $375,592; plus award funding for the remaining Burrtec trucks from the FY 1999-00 Carl Moyer Program funds in the amount of $146,022. The total contract amount will equal $1,523,720.

Waste Management, Inc., (WM) has submitted an application to repower 56 refuse collection trucks. Staff recommends funding for 6 trucks based on cost effectiveness considerations. The trucks are to be distributed throughout WM's bases within the Basin. All repowers will consist of late-model refuse trucks to be equipped with dedicated LNG Cummins engines and will be in operation for 12 years. The Cummins C8.3G dedicated engine is tested to a NOx level of 1.6 g/bhp-hr and certified to a level of 2.0 g/bhp-hr. On average, each refuse truck operates 2,600 hours per year and consumes up to 20,800 gallons of fuel per year. The repower/retrofit program will result in up to 20 tons per year of NOx emission reduction.

Browning Ferris Industries has submitted an application to purchase 10 new dual fuel refuse trucks. Staff recommends funding for all 10 trucks based on cost effectiveness considerations. The trucks are to be based at Browning Ferris Industries base in Sylmar. All trucks will be new Peterbilt models and will be equipped with dual fuel (LNG) Caterpillar engines and be in operation for 10 years. The Caterpillar engine with the PSA dual fuel kit is certified to a level of 2.5 g/bhp-hr. On average, each refuse truck operates 2,500 hours per year, drives 52,000 miles per year and consumes 22,400 gallons of fuel per year. The new trucks will result in up to 16 tons per year of NOx emission reduction.

CalMet Services, Inc., has submitted an application to repower 30 refuse trucks. Staff recommends funding for 20 trucks based on cost effectiveness considerations. The trucks are to be based at CalMet's facility in Montebello. The CalMet proposal included a range of specific vehicle cost-effectiveness. Although the vehicles selected for funding reflect the best cost-effectiveness, it is recognized that actual cost-effectiveness and emission reductions will vary based on specific vehicle routes. All trucks will consist of late model refuse trucks to be equipped with dedicated CNG Cummins 8.3G engines and will be in operation for 12 years. The Cummins dedicated engines is tested to a NOx level of 1.6 g/bhp-hr and certified to a level of 2.0 g/bhp-hr. On average, each refuse truck operates 2,600 hours per year and consumes up to 18,000 gallons of fuel per year. The repower/retrofit will result in up to 26 tons per year of NOx emission reduction.

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.

Carl Moyer Program AQMD RFP #9900-06 On-Road Fuel Vehicle Proposals

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 102 tons per year. The vehicles and equipment proposed will operate many years, providing long-term emissions reductions.

Resource Impacts

Total cost for the proposed project is $3,355,046. All funding for these 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. 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. The AQMD costshare 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."

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