South Coast Air Quality Management District

Execute Contract for AQIP Proposals Received During First Quarter of 2001

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 first quarter of 2001. This action is to recommend one for funding. The amount available for this quarter is $1,598,169.

COMMITTEE: 

Mobile Source, June 22, 2001, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute one contract for a total amount not to exceed $1,025,501 from the AQIP Special Revenue Fund to obtain mobile source emission reductions with OceanAir Environmental.

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 first quarter of 2001.

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 first quarter of 2001 participation period ended on March 31, 2001 with 65 employers participating in the AQIP program. The total AQIP funds received during this period were $1,179,360 which includes both annual and triennial participants (see Attachment 1). In addition, $223,438 is being carried forward from the previous quarters and an additional amount of $195,371 was made available from Rule 2202 legal settlements. Therefore, the total amount available for this quarter is $1,598,169 (see Attachment 1, Table 4). Staff recommends that $1,025,501 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 first quarter of 2001, three proposals were received requesting funds ranging from $81,250 to $1,209,566. The project proposals received can be grouped in two categories: Transportation Demand Management, 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: two from Transportation Programs; one from Planning; one from Engineering & Compliance, and two from Technology Advancement; comprised of one Senior Manager, one Manager, two Program Supervisors, one Air Quality Specialist, and one Transportation Specialist. The panel consisted of two females and four males; one Asian Indian, three 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. OceanAir Environmental's (Option 2-A) was not the most cost-effective in regard to available funds, but met the necessary emission reduction targets, provided multi-pollutant benefits, and cut across a number of control strategies previously supported by the Board.

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

1. OceanAir Environmental                                             Option 2-A (5 Years) $1,025,501
                                                                                                             County: Los Angeles

OceanAir Environmental proposes to generate emission reductions by repowering six marine vessels (Sea Queen, Nancy BII, Paloma, Ferrigno Boy, G Nazzererano & Midnight Hour) based in the Port of Long Beach with low-emissions diesel engines. The cost-effectiveness of the four options of this proposal ranges from $1.12 to $2.91 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 March 29, 2001 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 – 1st Quarter 2001

TABLE 1

Funds Received (as of March 31, 2001)

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 May 4, 2001. The proposals are not listed by classification or rank.

1. Earthguard Environmental Services                                             Option 1   $81,250
                                                                                                            Option 2 $117,000
                                                                                                            Option 3 $130,000
                                                                                                            Option 4 $170,625
                                                                                                            County: Los Angeles

Earthguard Environmental Services proposes to provide AQMD-approved Emission Reduction Credits (ERCs) generated by "Process Change." 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 $1.75 to $2.50 per pound. (Not funded.)

2. OceanAir Environmental                                        Option 1-A (3 Years)     $946,617
                                                                                     Option 2-A (5 Years)   $1,025,501
                                                                                     Option 3-A (7 Years)   $1,141,199
                                                                                     Option 4-A (10 Years) $1,209,566
                                                                   Options 1-B, 2-B, 3-B & 4-B were withdrawn
                                                                                     County: Los Angeles

OceanAir Environmental proposes to generate emission reductions by repowering six marine vessels (Sea Queen, Nancy BII, Paloma, Ferrigno Boy, G Nazzererano & Midnight Hour) based in the Port of Long Beach with low-emissions diesel engines. The cost-effectiveness of the four options of this proposal ranges from $1.12 to $2.91 per pound. (Funded Option 2-A.)

3. County of San Bernardino Public Works Dept.                              Option 1 $354,119
                                                                                                               Option 2 $230,000
                                                                                                     County: San Bernardino

County of San Bernardino Public Works Department proposes to generate emission reductions by operating a home-based vanpool and carpool services for commuters living in the Crestline communities using vehicles provided by the Mountain Area Regional Transit Authority (MARTA). The funding requested is for acquiring and developing parking lots needed for the vanpools. The cost-effectiveness of these proposals are $7.67 and $11.81 per pound. (Not funded.)

ATTACHMENT 4

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." (In this evaluation, all proposals were eligible for Local and Small Business points, so the ranking was unchanged.)
 

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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