South Coast Air Quality Management District

Execute Contracts for Infrastructure, Forklift and Off-Road Other Project Awards Under FY 2000–01 Carl Moyer Memorial Air Quality Standards Attainment Program and Modify Three Contracts from FY 1999-00 Program

SYNOPSIS:

On January 19, 2001, the Board approved the release of an RFP to solicit projects for FY 2000-01 Carl Moyer Memorial Air Quality Standards Attainment Program. This action is to execute contracts to fund infrastructure, forklift, APUs and off-road other projects. Staff further recommends modifying three contracts executed under the FY 1999-00 Moyer Program. The total cost to the Carl Moyer Program Fund will not exceed $4.5 million.

COMMITTEE:

Technology, June 22, 2001, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to modify the following contracts from the FY 1999-00 Carl Moyer Program:

1. A contract with the City of Inglewood, in an amount not to exceed $100,000 to purchase three new natural gas (NG) street sweepers and two new NG ten-yard dump trucks from the Clean Fuels Fund.
   
   
2. A contract with Virco Manufacturing to purchase 30 new forklifts with two battery packs each, in an amount not to exceed $424,190 from the Clean Fuels Fund.
   
   
3. A contract with CalMet Services, Inc. to repower seven waste collection haulers to CNG, in an amount not to exceed $343,000 from the Clean Fuels Fund.

Authorize the Chairman to execute the following contracts from the FY 2000-01 Carl Moyer Program Fund:

1. A contract with Omnitrans to cost-share the installation of two L/CNG fueling facilities, in an amount not to exceed $400,000, from the CEC portion of the Carl Moyer Program Funds.
   
   
2. A contract with Foothill Transit to cost-share the installation of a CNG fueling facility, in an amount not to exceed $200,000, from the CEC portion of the Carl Moyer Program Funds.
   
   
3. A contract with Sysco Food Services to cost-share the installation of an LNG fueling facility, in an amount not to exceed $200,000, from the CEC portion of the Carl Moyer Program Funds.
   
   
4. A contract with Albertsons’ to cost-share the installation of an LNG fueling facility, in an amount not to exceed $188,710 from the CEC portion of the Carl Moyer Program Funds.
   
   
5. A contract with the City of Pasadena to cost-share the installation of electric charging infrastructure, in an amount not to exceed $45,000 from the CEC portion of the Carl Moyer Program Funds.
   
   
6. A contract with Leggett & Platt Inc. to: a) cost-share the installation of electric charging infrastructure, in an amount not to exceed $4,000 from the CEC portion of the Carl Moyer Program Funds, b) purchase 2 electric forklifts with a lift capacity of 5,000 pounds, in an amount not to exceed $8,298, from the Carl Moyer Program Funds, c) purchase 1 electric forklift with a lift capacity of 5,000 pounds and an additional battery, in an amount not to exceed $8,225, from the Carl Moyer Program Funds.
   
   
7. A contract with Lowe’s HIW to: a) cost-share the installation of electric charging infrastructure, in an amount not to exceed $151,000, from the CEC portion of the Carl Moyer Program Funds, b) purchase 60 electric forklifts with a lift capacity of 5,000 pounds, in an amount not to exceed $254,329, from the Carl Moyer Program Funds, c) purchase 40 electric forklifts, with a lift capacity of 6,500 pounds in an amount not to exceed $148,699, from the Carl Moyer Program Funds.
   
   
8. A contract with Charter Communications to purchase one electric forklift with a lift capacity of 5,000 pounds, in an amount not to exceed $5,976, from the Carl Moyer Program Funds.
   
   
9. A contract with Kingdom Group to repower 43 diesel yard tractors to CNG, in an amount not to exceed $1,376,000, from the Carl Moyer Program Funds; $281,976 from the FY 1999-00 Carl Moyer Program Funds and $1,094,024 from the FY 2000-01 Carl Moyer Program Fund.
   
   
10. A contract with IdleAire to electrify 75-truck parking spaces, in an amount not to exceed $372,741 from the Carl Moyer Program Funds and $152,259 from the Clean Fuel Fund (FY 1999-00 required local matching monies.).

Barry R. Wallerstein, D.Env.
Executive Officer

Background

This is the third year of funding recommendations, implementing the Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer Program) in the South Coast Region. In recognition of the contribution of heavy-duty vehicles to the emissions inventory, and the difficulty in implementing low emission technologies, $50 million was placed in ARB’s budget for FY 2000-01 to provide incentives for low-emission technologies. The program provides funding for the incremental cost of implementing low emission heavy-duty vehicle technologies. ARB developed the overall program requirements and criteria, and allocated funds to the local air districts for program administration. This year AQMD was allocated $19,745,849 from ARB and $1,188,710 from the California Energy Commission (CEC).

At its January 2001 meeting, the Governing Board approved the release of RFP #P2001-26 to solicit projects for low-emission, on- and off-road vehicles and equipment. New engines, repowers and retrofits are allowed within the program. ARB requires that all projects meet a $13,000/ton cost effectiveness for NOx reductions, that engines and retrofit kits must be certified to ARB low NOx standards, and that emission reductions be a minimum of 15% for retrofits and 30% for new engines. In addition, AQMD determined that clean, alternative fuels would be given funding priority. The state Legislature mandates all funding awards made under the FY 2000-01 Carl Moyer Program must have fully executed contracts by June 30, 2002.

This board letter also addresses modifications to three awards from the FY 1999-00 Carl Moyer Program.

Proposal

Three award modifications are requested from the FY 1990-00 Carl Moyer Program. The award to the City of Inglewood modifies the contract from five street sweepers to two dump trucks and three street sweepers for $100,000, which were originally requested under their proposal. No additional costs are incurred. The second award modification is to the contract with Virco Manufacturing. The original award included one battery pack per forklift, although the request was for two battery packs allowing for 12 hours of daily operation. The additional cost for the battery packs is $122,794 bringing the total award to $424,190. The third award revision is with CalMet Services Inc., modifying the award from purchasing seven new NG refuse trucks to repowering seven refuse trucks to CNG, as originally requested in their proposal. No additional costs are incurred. The additional funds are available due to turn-back funds from the FY 1999-00 program. The total cost to the FY 1999-00 Carl Moyer Program from these three projects is $867,190.

The Governing Board approved the release of RFP #P2001-26 to solicit projects for low-emission, on- and off-road vehicles and equipment. Proposal submissions have been reviewed and ranked for the infrastructure, forklift, APUs and off-road other categories. In order to insure accuracy of the application information and consistency in calculating cost effectiveness and emission reductions, the AQMD utilized two separate contractors. The contractors were tasked with validating information received, obtaining missing information, and updating the ARB spreadsheets to the current year requirements.

The proposals were ranked by clean fuel preference and then by cost-effectiveness. Table 1 summarizes the staff’s recommendation of awards for five forklift projects, to be funded from the Carl Moyer Program funds, totaling $425,527 with NOx emission reductions of 34 tons per year. Table 2 and 3 summarizes award recommendations for alternative fuel infrastructure, funded from the CEC portion of the Carl Moyer Program funds, totaling $1,188,710. Table 4 summarizes the "off-road other" category totaling $1,901,000 for 43 CNG yard tractors resulting in an annual NOx reduction of over 64 tons; and annual PM reductions of 3.8 tons and one APU category which will result in emission reductions of 191 tons/year of NOx and 0.43 tons/year of PM. All proposals received in the forklift category (Table 1) are recommended for funding. All electric infrastructure projects (Tabel 2) are recommended for funding. The natural gas infrastructure projects (Table 3) are recommended for funding based on cost-effectiveness until all the planned budget of $988,710 is exhausted. One off-road other project is still being analyzed and may be funded at a later date. All the other qualified off-road other projects (Table 4) are recommended for funding.

These recommended awards total $3,515,237 and comprise the first round of funding recommendations for the FY 2000-01 Carl Moyer Program. Additional award recommendations will be brought to the Board in the next few months.

OFF-ROAD

Forklifts
Most forklifts in use in the Basin operate with internal combustion engines (ICE), with emissions averaging 10 g/bhp-hr. According to the ARB off-road emissions inventory, there were more than 39,000 ICE forklifts with engines greater than 50 horsepower used in industrial applications in California in 1995.

An attractive alternative to an ICE engine is an electric forklift. Replacement of ICE forklifts with zero emission equipment can reduce emissions dramatically at a very reasonable cost.

Off-Road Equipment
NOx emissions from off-road vehicles and equipment represent 28 percent of the Basin's total NOx inventory. The Carl Moyer Program allows retrofitting existing equipment or the purchase of new, low-emission, diesel or alternative fuel equipment. In keeping with the AQMD’s alternative fuel priority, proposals for alternative fuel off-road vehicles and equipment were evaluated and ranked before diesel projects were considered.

Infrastructure
Vehicles running on alternative fuel, such as NG, have demonstrated significantly lower VOC, NOx, CO and toxic emissions than diesel fueled vehicles. Lack of a well-established NG fueling infrastructure has been a major barrier to full commercialization of NG vehicle technologies.

The proposed projects will help establish a basin-wide NG fueling infrastructure for both CNG and LNG. The expected NG fuel throughput for the projects is 6,105,331 gal/year.

APUs
Truck idling practices vary among different fleets, operators and geographical locations. Two main reasons line-haul truck operators idle their engines are: to keep the engine and fuel warm, and to heat or cool the cab/sleeper compartment. Since heavy-duty diesel engines do not operate at optimum efficiency at idle conditions, extended engine idling results increased emissions and fuel consumption. Truck stop electrification will not only reduce idling emissions from heavy-duty trucks, but will also result in fuel savings and reduced maintenance costs to truck operators.

The proposed project is to construct 75 electrified truck spaces at an existing truck stop facility. The expected emission reductions that will result from this project are estimated to be 191 tons/year of NOx and 0.48 tons/year of PM. This is the only project funded in this category.

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.	Excelsior, 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

A listing of open RFPs was made available to various legislative caucuses, community groups, trade organizations, chambers of commerce and other interested parties at the time the Notice Inviting Bids/Proposals was submitted for publication.

Additionally, potential bidders were notified from the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; 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"] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724. Staff also conducted outreach efforts to specific sectors, such as waste management, transportation providers, the construction and building industry, and port operations.

Benefits to AQMD

AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low emission, alternative fuel technologies within its Technology Advancement office. The AQMD has also supported a number of activities directed to commercialization of low-emission alternative fuel technologies. The successful implementation of the Carl Moyer Program is a direct result of these Technology Advancement activities. The proposed projects will have significant emission benefits for many years. Total NOx reductions from the proposed project are approximately 289 tons/year and 4.23 tons/year of PM. The vehicles and equipment proposed will operate many years, providing long-term emissions reductions.

Resource Impacts

Total cost for the proposed projects is $4,382,427. All funding for these projects is from the Carl Moyer Program Fund, established as a special revenue fund resulting from the statewide Carl Moyer Memorial Air Quality Standards Attainment Program, administered by ARB. The objective of the Carl Moyer Program is to accelerate the introduction of low-emission heavy-duty engines. Funds are distributed by the ARB through local air districts. Funds from this program are restricted to be used as incentives to private companies or public agencies operating heavy-duty engines in California to cover an incremental portion of the cost of cleaner on-road, off-road, marine, and locomotive engines. The AQMD cost share for the FY 2000-01 Carl Moyer Program is included in the March 2001 update of the Technology Advancement Plan as 2001CFM-1 "Clean Fuels Program Match for Carl Moyer Memorial Air Quality Standards Attainment Program."

The Carl Moyer Guidelines allow Moyer Program qualified projects funded by local monies to be used as the required local match contribution. This year the required local match funding for FY 2000-01 is $5.3 million, and is provided from two sources. On February 16, 2001, the Board voted to allocate $6 million of the AES settlement for natural gas fueling station infrastructure projects with public access within the four-county region. These funds meet the local match criteria for the Moyer Program. In addition, at the May 11, 2001 Governing Board meeting, a Memorandum of Agreement was approved accepting $316,410 from the Port of Los Angeles for use as local match funds under the Moyer Program; however, these funds are not being used for the contracts funded under this request.

Table 1
FY 2000-01 Carl Moyer Program
Proposed Awards for Forklifts
 

Table 2
Proposed Awards for Electric Infrastructure Funding
 

Table 3
FY 2000-01 Carl Moyer Program
Proposed Awards for Fueling Infrastructure
 

Table 4
FY 2000-01 Carl Moyer Program
Proposed Awards for Off Road-Other
 

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