South Coast Air Quality Management District

Execute Contracts for AQIP Proposals Received During Third 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 third quarter of 2000. This action is to recommend four for funding. The amount available for this quarter is $2,087,935.

COMMITTEE: 

Mobile Source, January 26, 2001, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute three respective contracts for a total amount not to exceed $1,485,619 from the AQIP Special Revenue Fund to obtain mobile source emission reductions with Taormina Industries, for an amount not to exceed $324,000, with the City of Norwalk for an amount not to exceed $173,128 and with OceanAir Environmental for an amount not to exceed $988,491. To further authorize the Chairman to execute a deferred exchange emission reductions contract with Market Based Solutions at no cost.

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 third 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 third quarter of 2000 participation period ended on September 30, 2000 with 33 employers participating in the AQIP program. The total AQIP funds received during this period were $1,192,627, which includes both annual and triennial participants (see Attachment 1). In addition, $796,160 is being carried forward from the previous quarters. Interest in the amount of $99,148 was accrued during the fiscal year 1999-00. Therefore, the total amount available for this quarter is $2,087,935 (see Attachment 1, Table 4). Staff recommends that $1,485,619 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 third quarter of 2000, eight proposals were received requesting funds ranging from $0 to $2,000,000. 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 five AQMD employees: three from Transportation Programs; one from Planning; and one from Technology Advancement; comprised of one Manager, one Program Supervisor, two Air Quality Specialists and one Transportation Specialist. The panel consisted of two females and three males; 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 the most heavily weighted criteria for determining ranking, the amount of funding available ultimately determines the recommendation. The Taormina Industries’ proposal, the City of Norwalk’s proposal and Ocean Air Environmental's proposal 2 were not the most cost-effective in regard to available funds, but together meet the necessary emission reduction targets.

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

1. OceanAir Environmental                                                 Option 2 (5 Years) $988,491
                                                                                             County: Los Angeles
   
   OceanAir Environmental proposes to generate emission reductions by repowering five (5) marine vessels based in the Port of Long Beach with low-emissions diesel engines in combination with already banked VOC ERCs. Option 5 deals with ocean barge container transportation modal shift. The cost-effectiveness of the five options of this proposal ranges from $1.15 to $2.00 per pound.
   
   
2. Taormina Industries                                                                                        $324,000
                                                                                             County: Los Angeles
   Taormina Industries proposes to reduce emissions by purchasing 13 heavy-duty LNG refuse trucks. The cost-effectiveness of this proposal is $2.00 per pound.
   
   
3. City of Norwalk                                                                                                $173,128
                                                                                             County: Los Angeles
   The City of Norwalk proposes to generate emission reductions by operating a peak-hour shuttle between the Whittier Historic Depot and the Norwalk/Santa Fe Springs Transportation Center (Metrolink Station). The cost effectiveness of this proposal is $56.12 per pound.
   
   
4. Market Based Solutions                                                                                  $0
                                                                                             County: All
   Market Based Solutions proposes to exchange 89,280 lbs. of NOx emission credits from the emissions bank and replace with 89,280 lbs. of NOx and 153,562 lbs. of CO credits with future expiration dates.

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.	Elcelsior, 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

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 September 28, 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 - 3^rd Quarter 2000

TABLE 1

Funds Received (as of September 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)

 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 November 3, 2000. The proposals are not listed by classification or rank.

1. Goodwill Industries                                                     Option A (10 Years) $152,144
                                                                                        Option B (20 Years) $152,144
                                                                                        County: All
   Goodwill Industries proposes to generate emission reductions by purchasing eight (8) trash compactors and thereby reducing Vehicle Miles Travelled (VMT). Based on the information provided, the proposal is estimated to have a cost-effectiveness range of $1.24 to $2.48 per pound. (Not Funded.)
   
   
2. Pick Your Part Auto Wrecking                                   $2,000,000
                                                                                        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 $3.84. (Not Funded.)
   
   
3. OceanAir Environmental                                            Option 1 (3 Years) $741,368
                                                                                        Option 2 (5 Years) $988,491
                                                                                        Option 3 (7 Years) $1,167,655
                                                                                        Option 4 (10 Years) $1,420,955
                                                                                        Option 5 (3 Years) $603,421
                                                                                        County: Los Angeles
   OceanAir Environmental proposes to generate emission reductions by repowering five (5) marine vessels based in the Port of Long Beach with low-emissions diesel engines in combination with already banked VOC Emission Reduction Credits (ERCs). Option 5 deals with ocean barge container transportation modal shift. The cost-effectiveness of the five options of this proposal ranges from $1.15 to $2.00 per pound. (Funded Option 2.)
   
   
4. Long Beach Bikestation                                              $50,000
                                                                                         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 $10.55 per pound. (Not Funded.)
   
   
5. Taormina Industries                                                     $324,000
                                                                                         County: Los Angeles
   Taormina Industries proposes to reduce emissions by purchasing 13 heavy-duty LNG refuse trucks. The cost-effectiveness of this proposal is $2.00 per pound. (Funded.)
   
   
6. Earthguard Environmental Services                           (Option A) $1,598,811
                                                                                         (Option B) $799,404
                                                                                         (Option C) $1,065,873
                                                                                         (Option D) $532,937
                                                                                         (Option E) $915,983
                                                                                         (Option F) $457,990
                                                                                         (Option G) $421,713
                                                                                         (Option H) $185,326
                                                                                         (Option I) $114,175
                                                                                         (Option J) $250,000
                                                                                         (Option K) $250,000
                                                                                         (Option L) $250,000
                                                                                         County: Los Angeles
   Earthguard Environmental Services proposes to provide AQMD-approved Emission Reduction Credits (ERCs) generated by "Process Change." Options A through I offer a combination of VOC ERCs and CO ERCs over various periods: Options A and B for a duration of 30 years, Options C and D are for a duration of 20 years, Option E and F for a duration of 10 years, Options G and H for a period of 5 years, Option H for a period of 3 years and Option I for a period of 1 year respectively. Options J through L offer only VOC ERCs. 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 $2.75 per pound. (Not Funded.)
   
   
7. City of Norwalk                                                           $173,128
                                                                                        County: Los Angeles
   The City of Norwalk proposes to generate emission reductions by operating a peak-hour shuttle between the Whittier Historic Depot and the Norwalk/Santa Fe Springs Transportation Center (Metrolink Station). The cost effectiveness of this proposal is $56.12 per pound. (Funded.)
   
   
8. Market Based Solutions                                             $0
                                                                                        County: All
   Market Based Solutions proposes to exchange 89,280 lbs. of NOx emission credits from the emissions bank and replace with 89,280 lbs. of NOx and 153,562 lbs. of CO credits with future expiration dates. (Approved.)

ATTACHMENT 4

Proposal Summary By Type

ATTACHMENT 4 (Continued)

Proposal Summary By Type

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."
 

ATTACHMENT 5 (Continued)

Summary

Proposal Ratings

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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