South Coast Air Quality Management District

Back

Approve Release of Application for Alternative Fuels Subvention Fund Match Program as Part of FY 2000-01 AB 2766 Discretionary Fund Work Program and Authorize Procurement Manager to Execute Agreements

SYNOPSIS: 

Last month the Board approved the MSRC's FY 2000-01 Work Program in concept including five TCM programs and five clean fuels programs. The Board also approved the release of seven RFP/Qs, and the MSRC indicated it would return the following month to request approval to release an application package for the Alternative Fuels Subvention Fund Match Program. The Match Program provides a 50-75% match for cities receiving AB 2766 City Subvention Funds towards alternative fuels infrastructure and the purchase of medium-/heavy-duty alternative fuel vehicles. The MSRC requests Board approval to release the application. In addition, MSRC staff anticipates that there may be significant response to this program and recommends that, after Governing Board approval of the projects, authority to execute agreements with local governments be granted to the AQMD's Procurement Manager.

COMMITTEE: 

Mobile Source Air Pollution Reduction Review Committee,
August 24, 2000, Approved Unanimously

RECOMMENDED ACTION:

1. Approve release of the Program Announcement and Application (#PA2001-01) for the Alternative Fuels Subvention Fund Match Program, with resulting contracts from application process subject to future AQMD Board approval; and
   
   
2. Authorize the AQMD's Procurement Manager to execute agreements with local governments for the Alternative Fuels Subvention Fund Match Program as part of the FY 2000-01 AB 2766 Discretionary Fund Work Program.

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. It is estimated that approximately $14.5 million, including projected interest and revenue carryover, will be available in the Discretionary Fund for FY 2000-01.

To utilize these funds and achieve the maximum emissions reduction benefits, the MSRC developed a $14.5 million FY 2000-01 AB 2766 Discretionary Fund Work Program. At the August 18, 2000 meeting, the AQMD Governing Board approved this Work Program in concept as well as seven RFP/Qs to solicit projects for elements within this Work Program. The Work Program consists of the following elements.

TCM Programs ($1 million)

• Voluntary Employer-Based Rideshare Incentive RFP ($300,000)
• Information Technology/Advanced Traveler Management Information Services (ATMIS) Trip Reduction Strategies RFP ($300,000)
• Employer-Based Bicycle Projects RFP ($100,000)
• Transit-Oriented Development Land-Use Strategies RFP ($200,000)
• Regional Electric-Assist Bicycle Incentive RFQ ($100,000)

Clean Fuels ($13.5 million)

• Alternative Fuels Transit Bus Program RFP ($4.25 million)
• On-/Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program RFP ($3.25 million)
• Allocation to Existing Buydown Programs for Light-Duty Alternative Fuel Vehicles ($2 million)
• Alternative Fuels Subvention Fund Match Program ($3 million)
• Reserve Allocation for Pending School Bus Program ($1 million)

Proposal

At its July 27, 2000 meeting, the MSRC maintained its $3 million commitment towards an Alternative Fuels Subvention Fund Match Program, but deferred final approval of the solicitation for one month pending refinement of program details by the MSRC-TAC. For local governments receiving AB 2766 Subvention Funds, this program was intended to provide a 50-70% match to their subvention dollars for alternative fuels infrastructure and medium-/heavy-duty alternative fuel vehicles.

At its August 24, 2000 meeting, the MSRC reached consensus on details of the Match Program and unanimously approved the Program Announcement and Application for the Alternative Fuels Subvention Fund Match Program as part of the conceptual FY 2000-01 AB 2766 Discretionary Fund Work Program. The original intent was to provide a 50% match with up to a 20% bonus match if at least two local jurisdictions joined together in an infrastructure project. The MSRC decided to increase the bonus match up to 25% if the following are met: multi-jurisdictional station development (5%); a station utilized by multiple fleets (5%); infrastructure "gap closure" (5%); and public accessibility (10%).

The MSRC is requesting the Board's approval to release the Program Announcement and Application for the Alternative Fuels Subvention Fund Match Program as part of the FY 2000-01 Work Program. Specific projects selected as a result of the application process will be subject to future Governing Board approval. There will be a five-month planning period to allow jurisdictions the opportunity to develop partnerships followed by a five-month application period commencing February 1, 2001 and ending June 30, 2001. Funding will be on a first-come, first-serve basis, with a geographic minimum of $375,000 for alternative fuels infrastructure for each of the four counties within the SCAQMD. After geographic minimums are reached, cities will be eligible to receive match monies for the purchase of medium-/heavy-duty alternative fuel vehicles. Staff anticipates that there may be a significant response to this solicitation and recommends that, after Governing Board approval of the projects, authority to execute agreements be granted to the AQMD's Procurement Manager solely for the FY 2000-01 Alternative Fuels Subvention Fund Match Program.

Outreach

Assuming approval of the Program Announcement and Application, a public notice will appear in several newspapers throughout the Basin, including several targeting minority stakeholders, advertising the funding opportunity and inviting proposals, in accordance with the AQMD's consulting and contracting policies.

The application package for the Alternative Fuels Subvention Fund Match Program will be mailed to every city and county receiving AB 2766 Subvention Funds. Meetings will also be conducted with the SCAG and the four county transportation commissions to advise of the availability of these match funds, explain the program, and disseminate the information.

The Program Announcement and Application will be placed on the MSRC's website, which is "http://www.msrc-cleanair.org". They will also be included on the AQMD's website under the "Business and Job Opportunities" icon, and information will be included about the Program on the AQMD's bidder's 24-hour telephone message line (909) 396-2724.

To assist potential bidders in submitting qualified proposals, two (2) bidders’ conferences will be conducted at AQMD Headquarters on October 20, 2000, and January 12, 2001.

Proposal Evaluation

Proposals received by the deadline will be evaluated by members of the MSRC's Technical Advisory Committee, a diverse group of individuals appointed by participating members as prescribed in the Health & Safety Code.

Resource Impacts

Health & Safety Code Section 44243(2)(c) requires the AQMD to deposit the discretionary fund revenues "in an account to be used, pursuant to Section 44244, to provide grants to fund projects for the exclusive purpose of reducing air pollution from motor vehicles." Since the monies for these solicitations will be drawn from this special fund, there would be no fiscal impact on the AQMD’s operational budget.

Attachment

Program Announcement and Application #PA2001-01

/ / /