South Coast Air Quality Management District

Execute Contracts for AQIP Proposals Received During Fourth 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 proposals received during the fourth quarter of 2000. This action is to recommend five for funding. The amount available for this quarter is $1,642,616.

COMMITTEE: 

Mobile Source, March 23, 2001, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute five respective contracts for a total amount not to exceed $1,419,178 from the AQIP Special Revenue Fund to obtain mobile source emission reductions with Taormina Industries for an amount not to exceed $124,615, with Anaheim Transportation Network for an amount not to exceed $205,000, with Pick Your Part Auto Wrecking for an amount not to exceed $400,000, with Department of California Highway Patrol not to exceed $6,934 and with OceanAir Environmental for an amount not to exceed $682,629.

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 fourth 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 which could potentially result in greater overall emission reductions.

The fourth quarter of 2000 participation period ended on December 31, 2000 with 45 employers participating in the AQIP program. The total AQIP funds received during this period were $1,040,300 which includes both annual and triennial participants (see Attachment 1). In addition, $602,316 is being carried forward from the previous quarters. Therefore, the total amount available for this quarter is $1,642,616 (see Attachment 1, Table 4). Staff recommends that $1,419,178 be used to purchase emission reductions to satisfy the one-year and the three-year requirements for the quarter.

Proposal Evaluation

During the bidding process of the fourth quarter of 2000, eight proposals were received requesting funds ranging from $6,934 to $1,600,000. The project proposals received can be grouped in four categories: Old-Vehicle Scrapping, Transportation Demand Management, Alternate Fuel, and Other. Attachment 2 gives a summary of emission reduction targets and the emission reduction credit balance. Attachment 3 gives a summary of each proposal received and funds requested. Attachment 4 provides an overall summary of the proposals by type, listing the proposals received, funds requested, total proposal costs, and emission reductions expected from each proposal.

All proposals submitted were 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: three from Transportation Programs; one from Planning; one from Engineering & Compliance, and one from Technology Advancement; comprised of one Senior Manager, one Manager, one Program Supervisor, two Air Quality Specialists, and one Transportation Specialist. The panel consisted of three females and three males; one African American, one Asian Indian, two Caucasian, and two 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 rankings. While cost-effectiveness is a heavily weighted criteria for determining ranking and selection of proposals, the amount of funding available, status of the Emissions Bank and the desire to diversify types of project ultimately determines the staff recommendation. Taormina Industries’ proposal, Pick Your Part Auto-Wrecking’s proposal, Anaheim Transportation Network’ proposal, Department of California Highway Patrol’s proposal and OceanAir Environmental's (Option 2-3) were not the most cost-effective in regard to available funds, but together meet the necessary emission reduction targets, provided multipollutant benefits, and cut across a number of control strategies previously supported by the Board.

The following proposals are recommended for approval (as detailed in Attachment 6):

1. OceanAir Environmental Option 2-3                                 (7 Years) $682,629
                                                                                                County: Los Angeles
   OceanAir Environmental proposes to generate emission reductions by repowering four marine vessels (Amigo, Nautilus, Patriot and Pursuit) based in the Port of Long Beach with low-emissions diesel engines. Option 2-3 yields emission reductions over a period of seven years. The cost-effectiveness of this option is $1.60 per pound.
   
   
2. Pick Your Part Auto Wrecking                                                          $400,000
                                                                                                 County: All
   Pick Your Part Auto Wrecking proposes to generate MSERCs by eliminating pre-1982 vehicles through old-vehicle scrapping. The cost-effectiveness of this proposal is $4.24 per pound.
   
   
3. Anaheim Transportation Network                                                     $205,000
                                                                                                 County: Orange
   The Anaheim Transportation Network proposes to generate emission reductions by replacing a diesel shuttle bus with an electric shuttle bus and operate it in the Anaheim Resort area. The cost-effectiveness of this proposal is $13.39 per pound.
   
   
4. Taormina Industries                                                                             $124,615
                                                                                                 County: Los Angeles
   Taormina Industries proposes to reduce emissions by purchasing five heavy-duty LNG refuse trucks. The cost-effectiveness of this proposal is $2.00 per pound.
   
   
5. Department of California Highway Patrol (CHP)                               $6,934
                                                                                                 County: San Bernardino
   Department of California Highway Patrol proposes to generate emission reductions by deploying five bicycle mounted patrol officers and reducing auto vehicle miles travelled. The cost effectiveness of this proposal is $9.00 per pound.

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	25. 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 December 14, 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 Proposals Received
4. Summary of Proposals By Type
5. Summary of Proposal Ratings
6. Recommendation for Funding

ATTACHMENT 1

AQIP - 4th Quarter 2000

TABLE 1

Funds Received (as of December 31, 2000)

TABLE 2

Annual Participation

TABLE 3

Triennial Participation

ATTACHMENT 1

(Continued)

TABLE 4

Total Available Funding

ATTACHMENT 2

TABLE 1

Emission Reduction Targets
(Pounds)

TABLE 2

Emission Reduction Credit Balances
(Pounds)

TABLE 2 (Continued)

Emission Reduction Credit Balances
(Pounds)

ATTACHMENT 3

Summary
Air Quality Investment Program
Proposals Received

The following proposals were received in response to the AQIP Request for Proposals (RFP) on or before February 2, 2001. The proposals are not listed by classification or rank.

1. Anaheim Transportation Network                                                    $410,000
                                                                                               County: Orange
   The Anaheim Transportation Network proposes to generate emission reductions by replacing two diesel shuttle buses with two electric shuttle buses and operating them in the Anaheim Resort area. The cost-effectiveness of this proposal is $13.39 per pound. (One shuttle funded.)
   
   
2. Pick Your Part Auto Wrecking                                                      $1,600,000
                                                                                               County: All
   Pick Your Part Auto Wrecking proposes to generate MSERCs by eliminating pre-1982 vehicles through old-vehicle scrapping. The cost-effectiveness of this proposal is $4.24. (Funded 25% of the request.)
   
   
3. Long Beach Bikestation                                                                     $25,000
                                                                                               County: Los Angeles
   Long Beach Bikestation proposes to reduce emissions by promoting bicycles as an intermodal element of the daily commute in the Long Beach area over a 10 year period. The cost-effectiveness of this proposal is $5.27 per pound. (Not funded.)
   
   
4. Taormina Industries                                                                          $124,615
                                                                                               County: Los Angeles
   Taormina Industries proposes to reduce emissions by purchasing five heavy-duty LNG refuse trucks. The cost-effectiveness of this proposal is $2.00 per pound. (Funded.)
   
   
5. OceanAir Environmental Option 1-1                            (3 Years)     $846,802
                                                                         Option 1-2 (5 Years) $1,016,162
                                                                         Option 1-3 (7 Years) $1,264,557
                                                                         Option 2-1 (3 Years)    $457,117
                                                                         Option 2-2 (5 Years)    $548,541
                                                                         Option 2-3 (7 Years)    $682,629
                                                                         Option 3-1 (3 Years)    $311,351
                                                                         Option 3-2 (5 Years)    $345,945
                                                                         Option 3-3 (7 Years)    $363,243
                                                                         Option 4-1 (3 Years)    $363,936
                                                                         Option 4-2 (5 Years)    $433,258
                                                                         Option 4-3 (7 Years)    $545,905
                                                                         Option 5                        $603,421
                                                                                               County: Los Angeles
   OceanAir Environmental proposes to generate emission reductions by repowering marine vessels based in the Port of Long Beach, in combinations of 2, 3, 4 or 9 marine vessels, with low-emissions diesel engines. Option 5 deals with ocean barge container transportation modal shift. The cost-effectiveness of the five options of this proposal ranges from $1.60 to $6.00 per pound. (Funded Option 2-3.)
   
   
6. Department of CHP                                                                             $6,934
                                                                                               County: San Bernardino
   Department of CHP proposes to generate emission reductions by deploying five bicycle mounted patrol officers and reducing auto vehicle miles travelled. The cost effectiveness of this proposal is $9.00 per pound. (Funded.)
   
   
7. University of California, Riverside                                                 $227,317
                                                                                               County: All
   University of California, Riverside proposes to generate emission reductions by operating and improving an Intelligent Shared Vehicle System on their campus. The cost effectiveness of this proposal is $406.50 per pound. (Not funded.)
   
   
8. Earthguard Environmental Services (Option 1)                             $234,279
                                                                                           (Option 2) $480,000
                                                                                           (Option 3) $854,171
                                                                                           (Option 4) $246,968
                                                                                           (Option 5) $450,000
                                                                                           (Option 6) $625,000
                                                                                           (Option 7) $168,750
                                                                                           (Option 8) $259,540
                                                                                           (Option 9) $375,000
                                                                                           (Option 10) Withdrawn
                                                                                           (Option 11) $625,000
                                                                                           (Option 12) $312,500
                                                                                           (Option 13) $201,500
                                                                                           (Option 14) $100,750
                                                                                               County: Los Angeles
   Earthguard Environmental Services proposes to provide AQMD-approved Emission Reduction Credits (ERCs) generated by "Process Change." Options 1 through 14 offer various combinations of VOC ERCs and CO ERCs over various periods: Options 11 through 14 are for a duration of ten years, Options 1 through 3 are for a duration of eight years, Options 4 through 6 are for a duration of three years, and Option 10 is for a period of one year, respectively. 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 $1.55 to $3.33 per pound. (Not funded.)

ATTACHMENT 4

Proposal Summary By Type

OLD-VEHICLE SCRAPPING	AQIP Funding Request	Total Program Cost	AQIP Program Period	Emission Reduction Commitments (lbs.)
				VOC	NOx	CO
Pick Your Part Auto Wrecking	$1,600,000	$1,600,000	Triennial	122,340	89,475	1,158,000

ATTACHMENT 4 (Continued)

Proposal Summary By Type

OTHER	AQIP Funding Request	Total Program Cost	AQIP Program Period	Emission Reduction Commitments (lbs.)
				VOC	NOx	CO
OceanAir Environmental (Option 1-3)	$1,264,557	$3,082,500	7 Years	5,677	707,476	540,365
OceanAir Environmental (Option 2-1)	$457,177	$1,370,000	3 Years	561	159,744	157,773
OceanAir Environmental (Option 2-2)	$548,541	$1,370,000	5 years	935	266,240	262,955
OceanAir Environmental (Option 2-3)	$682,629	$1,370,000	7 Years	1,309	372,736	368,137
OceanAir Environmental (Option 3-1)	$311,351	$685,000	3 Years	1,536	49,725	51,894
OceanAir Environmental (Option 3-2)	$345,945	$685,000	5 years	2,560	82,875	7,380
OceanAir Environmental (Option 3-3)	$363,243	$685,000	7 Years	3,584	116,025	10,332
OceanAir Environmental (Option 4-1)	$363,936	$1,027,500	3 Years	339	93,735	69,384
OceanAir Environmental (Option 4-2)	$433,258	$1,027,500	5 years	565	156,225	115,640
OceanAir Environmental (Option 4-3)	$545,905	$1,027,500	7 Years	791	218,715	161,896
OceanAir Environmental (Option 5)	$603,421	$603,421	Triennial	47,253	176,511	545,622
Earthguard Environmental Services (Option 1)	$234,279	$234,279	8 Years	66,560	0	522,680
Earthguard Environmental Services (Option 2)	$480,000	$480,000	8 Years	104,000	0	1,022,000
Earthguard Environmental Services (Option 3)	$854,171	$854,171	8 Years	176,800	0	1,752,000
Earthguard Environmental Services (Option 4)	$246,968	$246,968	5 Years	66,300	0	523,775
Earthguard Environmental Services (Option 5)	$450,000	$450,000	5 Years	97,500	0	958,125

ATTACHMENT 4 (Continued)

Proposal Summary By Type

OTHER	AQIP Funding Request	Total Program Cost	AQIP Program Period	Emission Reduction Commitments (lbs.)
				VOC	NOx	CO
Earthguard Environmental Services (Option 6)	$625,000	$625,000	5 Years	130,000	0	1,277,500
Earthguard Environmental Services (Option 7)	$168,750	$168,750	3 Years	39,000	0	383,250
Earthguard Environmental Services (Option 8)	$259,540	$259,540	3 Years	65,520	0	523,410
Earthguard Environmental Services (Option 9)	$375,000	$375,000	3 Years	78,000	0	766,500
Earthguard Environmental Services (Option 10)	$261,095	$261,095	1 Year	38,220	34,000	306,600
Earthguard Environmental Services (Option 11)	$625,000	$625,000	10 Years	130,000	0	1,277,500
Earthguard Environmental Services (Option 12)	$312,500	$312,500	10 Years	65,000	0	638,750
Earthguard Environmental Services (Option 13)	$201,500	$201,500	10 Years	130,000	0	0
Earthguard Environmental Services (Option 14)	$100,750	$100,750	10 Years	65,000	0	0

ATTACHMENT 5

Summary

Proposal Ratings

All proposals submitted were 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."

Proposal Name	Type	Total	AVG Score
OceanAir Environmental (Option 1-3)	Repower 9 Marine Vessels ( 7 Years)	641	106.8
OceanAir Environmental (Option 2-3)	Repower 4 Marine Vessels (Pursuit, Amigo, Patriot & Nautilus) (7 Years)	640	106.7
OceanAir Environmental (Option 1-2)	Repower 9 Marine Vessels ( 5 Years)	632	105.3
OceanAir Environmental (Option 2-2)	Repower 4 Marine Vessels (Pursuit, Amigo, Patriot & Nautilus) (5 Years)	629	104.8
OceanAir Environmental (Option 1-1)	Repower 9 Marine Vessels (3 Years)	601	100.2
OceanAir Environmental (Option 4-3)	Repower 3 Marine Vessels (Amber Marie, Pacifica, Monte Carlo) (7 Years)	601	100.2
OceanAir Environmental (Option 2-1)	Repower 4 Marine Vessels (Pursuit, Amigo, Patriot & Nautilus) (3 Years)	599	99.8
OceanAir Environmental (Option 4-2)	Repower 3 Marine Vessels (Amber Marie, Pacifica, Monte Carlo) (5 Years)	595	99.2
Taormina Industries (10 Years)	Purchase of (5) Heavy-duty LNG Refuse Trucks	589	98.2
OceanAir Environmental (Option 3-3)	Repower 2 Marine Vessels (Trueline & Sand Dollar) (7 Years)	567	94.5
OceanAir Environmental (Option 4-1)	Repower 3 Marine Vessels (Amber Marie, Pacifica, Monte Carlo) (3 Years)	564	94.0
OceanAir Environmental (Option 3-2)	Repower 2 Marine Vessels (Trueline & Sand Dollar) (5 Years)	540	90.0
Earthguard Environmental Services (Opt.1)	ERCs generated under Reg XIII (R1306) (8 Years)	531	88.5
Earthguard Environmental Services (Opt. 13)	ERCs generated under Reg XIII (R1306) (10 years)	530	88.3
Earthguard Environmental Services (Opt. 14)	ERCs generated under Reg XIII (R1306) (10 years)	530	88.3

ATTACHMENT 5 (Continued)

Summary

Proposal Ratings

Proposal Name	Type	Total	AVG Score
Earthguard Environmental Services (Opt. 4)	ERCs generated under Reg XIII (R1306) (5 years)	525	87.5
Earthguard Environmental Services (Opt. 7)	ERCs generated under Reg XIII (R1306) (3 years)	525	87.5
Earthguard Environmental Services (Opt. 8)	ERCs generated under Reg XIII (R1306) (3 years)	519	86.5
Earthguard Environmental Services (Opt. 5)	ERCs generated under Reg XIII (R1306) (5 years)	513	85.5
Earthguard Environmental Services (Opt. 2)	ERCs generated under Reg XIII (R1306) (8 years)	511	85.2
OceanAir Environmental (Option 3-1)	Repower 2 Marine Vessels (Trueline & Sand Dollar) (3 Years)	510	85.0
Earthguard Environmental Services (Opt. 9)	ERCs generated under Reg XIII (R1306) (3 years)	508	84.7
Earthguard Environmental Services (Opt. 6)	ERCs generated under Reg XIII (R1306) (5 years)	506	84.3
Earthguard Environmental Services (Opt. 3)	ERCs generated under Reg XIII (R1306) (8 years)	503	83.8
Earthguard Environmental Services (Opt. 11)	ERCs generated under Reg XIII (R1306) (10 years)	501	83.5
Earthguard Environmental Services (Opt. 12)	ERCs generated under Reg XIII (R1306) (10 years)	501	83.5
Earthguard Environmental Services (Opt. 10)	ERCs generated under Reg XIII (R1306) (1 year)	485	80.8
Pick Your Part	Old Vehicle Scrapping	483	80.5
Anaheim Transportation Network	Purchase 2 Electric Shuttles to replace diesel vehicles (7 Years)	478	79.7
Department of CHP	Reduction of VMT due to Bike usage (10 years)	452	75.3
Bikestations Inc	Reduction of VMT due to bike usage (10 years)	449	74.8
UC, Riverside	Operation & Improvement of an Intelligent Shared Electric Vehicle System	309	51.5
OceanAir Environmental (Option 5)	Modal Transportation Shift	296	49.3

ATTACHMENT 6

TABLE 1

Proposals Recommended for Funding
Anticipated Emission Reductions
(Pounds/Year)

TABLE 2

Proposals Recommended for Funding
Funding Request

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