South Coast Air Quality Management District

Back

Execute Contract for AQIP Proposal Received During Second 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 options in the proposal received during the second quarter of 2000. This action is to recommend one option for funding. The amount available for this quarter is $186,776.

COMMITTEE: 

Mobile Source, September 22, 2000, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract for a total amount not to exceed $175,000 from the AQIP Special Revenue Fund to obtain mobile source emission reductions with Earthguard Environmental Services.

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 second 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 second quarter of 2000 submittal period ended on June 30, 2000 with 17 employers participating in the AQIP program. The total AQIP funds received during this period were $114,150, which includes both annual and triennial participants (see Attachment 1). In addition, $72,626 is being carried forward from the previous quarters. Therefore, the total amount available for this quarter is $186,776 (see Attachment 1, Table 4). Subsequent to the September 22, 2000 Mobile Source Committee meeting, staff was able to negotiate a more favorable position that can be banked and more fully utilized to meet near term program needs. Staff recommends that $175,000 be used to purchase emission reductions for years 2001 through 2003. These emission reductions will meet the calculated 2001 and 2002 emission reduction targets, and the anticipated 2003 target.

Proposal Evaluation

During the bidding process of the second quarter of 2000, one proposal with five options was received requesting funds ranging from $76,050 to $175,000. Attachment 2 gives a summary of emission reduction targets and the emission reduction credit balances. Attachment 3 gives a summary of the proposal received and funds requested. Attachment 4 provides an overall summary of the proposal, listing the funds requested, total proposal costs, and emission reductions expected from each option.

The proposal submitted was 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 three females and three males; one African American, one Asian Indian, one 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 option 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. Option A of the proposal from Earthguard Environmental Services provides both VOC and CO credits and helps build credits in the Emission Bank.

The following proposal is recommended for approval (as detailed in Attachment 6):

1. Earthguard Environmental Services                     (Option A) $175,000
   
   Earthguard Environmental Services proposes to provide AQMD-approved Emission Reduction Credits (ERCs) generated by "Process Change." Option A offers ERCs of both VOC and CO. The quantifications of these ERCs have been verified by the AQMD according to the methodology contained in Regulation XIII, Rule 1306.

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. The 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 Register
7. Inland Empire Hispanic News	16. Orange County Register
8. Inland Valley Daily Bulletin	17. Palm Springs Desert Sun
9. Korea Central Daily	18. Philippine News

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.

A Bidders Conference was convened at the AQMD on June 29, 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 Proposal Received
4. Summary of Proposal By Type
5. Summary of Proposal Ratings
6. Recommendation for Funding

ATTACHMENT 1

AQIP - 2nd Quarter 2000

TABLE 1

Funds Received (as of June 30, 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)

TBD = To be determined
* Staff will begin to estimate 2003 emission bank requirements in 2001.

ATTACHMENT 3

Summary
Air Quality Investment Program
Proposal Received

The following proposal was received in response to the AQIP Request for Proposals (RFP) on or before August 4, 2000.

1. Earthguard Environmental Services                                     (Opt A) $175,000
                                                                                                   (Opt B) $80,000
                                                                                                   (Opt C) $160,000
                                                                                                   (Opt D) $76,050
                                                                                                   (Opt E) $152,100
                                                                                                   County: Los Angeles
   
   Earthguard Environmental Services proposes to provide AQMD-approved Emission Reduction Credits (ERCs) generated by "Process Change." Options B and C offer VOC ERCs over 30 years while Options D and E are for a duration of three years. Option A offers ERCs of both VOC and CO. The quantification of these ERCs were verified by the AQMD according to the methodology contained in Regulation XIII, Rule 1306. The cost-effectiveness of various options in this proposal ranges from $0.41 to $1.64 per pound. (Option A is recommended for funding as it offers both VOC and CO.)

ATTACHMENT 4

Proposal Summary By Type
 

ATTACHMENT 5

Summary

Proposal Ratings

The proposal submitted was 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

Proposal Option Recommended for Funding
Anticipated Emission Reductions
(Pounds/Year)
 

TABLE 2

Proposal Option Recommended for Funding
Funding Request
 

/ / /