South Coast Air Quality Management District

Execute Contracts for On-Road Awards Under FY 2000–01 Carl Moyer Memorial Air Quality Standards Attainment 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 on-road heavy-duty vehicles, transit buses, and other on-road vehicles. Total cost to the Carl Moyer Program Fund will not exceed $13.4 million.

COMMITTEE:

Technology, August 24, 2001. Less than a quorum was present during the discussion of this item; the Vice Chair communicated the concurrence of the members present in the meeting and the recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

RECOMMENDED ACTIONS:

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

1. A contract with Danone Waters to cost-share the retrofit of 25 local delivery, diesel fuel trucks to dual fuel LNG/Diesel, in an amount not to exceed $87,500, from the Carl Moyer Program Fund.
   
   
2. A contract with Sysco to cost-share the purchase of 32 new local delivery dual fuel LNG/diesel trucks, in an amount not to exceed $241,696, from the Carl Moyer Program Fund.
   
   
3. A contract with CR&R to cost-share the purchase of 40 new door-to-door refuse LNG trucks, in an amount not to exceed $800,000, from the Carl Moyer Program Fund.
   
   
4. Contracts with Waste Management to cost-share the purchase of 14 new door-to-door refuse CNG trucks, in an amount not to exceed $280,000, and to cost-share the repower of 25 diesel refuse trucks to LNG, at a cost not to exceed $396,560, from the Carl Moyer Program Fund.
   
   
5. Contracts with Valley Vista Services to cost-share the repower of 3 door-to-door refuse vehicles to CNG, in an amount not to exceed $165,000, and the purchase of 15 new CNG door-to-door refuse vehicles in an amount not to exceed $382,500, from the Carl Moyer Program Fund.
   
   
6. A contract with Blue Barrel Disposal (Waste Management) to cost-share the purchase of 20 new door-to-door refuse LNG trucks, in an amount not to exceed $440,000, from the Carl Moyer Program Fund.
   
   
7. Contracts with Dalton Trucking to cost-share the purchase of 10 new dual fuel LNG/diesel refuse transfer vehicles, an amount not to exceed $357,500, and to cost-share the purchase of 10 new dual fuel LNG/diesel refuse transfer/local delivery vehicles in an amount not to exceed $364,026, from the Carl Moyer Program Fund.
   
   
8. A contract with California Street Maintenance to cost-share the purchase of 15 new CNG street sweepers, in an amount not to exceed $315,975, from the Carl Moyer Program Fund.
   
   
9. A contract with Kingdom Group to cost-share the repower of 32 CNG delivery vehicles, in an amount not to exceed $283,196, from the Carl Moyer Program Fund.
   
   
10. A contract with Palm Springs Disposal Service to cost-share the purchase of 20 new LNG refuse vehicles, in an amount not to exceed $384,543, from the Carl Moyer Program Fund.
    
    
11. A contract with Taormina Industries to cost-share the purchase of 27 new door-to-door LNG/diesel refuses vehicles, in an amount not to exceed $400,544, from the Carl Moyer Program Fund.
    
    
12. A contract with Ventura Transfer Company, Inc. to cost-share the purchase of 12 new dual fuel LNG/diesel vehicles, in an amount not to exceed $338,286, from the Carl Moyer Program Fund.
    
    
13. Contracts with Ware Disposal Company, Inc. to cost-share the purchase of 10 new door-to-door CNG refuse vehicles, in an amount not to exceed $176,865, from the Carl Moyer Program Fund.
    
    
14. A contract with the City of Anaheim to cost-share the purchase of 10 new LPG street sweepers, in an amount not to exceed $32,325, from the Carl Moyer Program Fund.
    
    
15. A contract with the City of Los Angeles to cost-share the purchase of 125 new LNG/diesel, door-to-door refuse vehicles, 41 new LPG urban buses, 12 new LNG transit/shuttle buses and 1 new CNG street sweeper, in an amount not to exceed $2,543,500, from the Carl Moyer Program Fund.
    
    
16. Contracts with United Parcel Service to cost-share the purchase of 10 new LNG trucks, in an amount not to exceed $135,000, and repower to CNG 5 package delivery trucks in an amount not to exceed $65,000, from the Carl Moyer Program Fund.
    
    
17. A contract with the Port of Los Angeles to cost-share the purchase of 1 new CNG hydraulic crane, 1 new CNG truck tractor, 1 new CNG water tank truck, 1 new CNG aerial man lift platform, 1 new LPG dump/local delivery truck, 1 new LPG paint striper and 1 new CNG street sweeper, in an amount not to exceed $20,616, from the Carl Moyer Program Fund.
    
    
18. A contract with D.O.N. Investments to cost-share the purchase of 23 new LNG line haul trucks, in an amount not to exceed $84,000, from the Carl Moyer Program Fund.
    
    
19. A contract with the City of Burbank to cost-share the purchase of, 3 new CNG street sweepers, 7 new CNG door-to-door refuse trucks, 2 new CNG chipper trucks, 6 new CNG flat bed trucks, 1 new CNG leaf truck, 2 new CNG transit buses, and 3 new CNG utility trucks, in an amount not to exceed $236,114, from the Carl Moyer Program Fund.
    
    
20. A contract with the City of Pasadena to cost-share the purchase of 6 new hybrid electric shuttle buses, in an amount not to exceed $84,000, from the Carl Moyer Program Fund.
    
    
21. A contract with the City of Culver City to cost-share the purchase of 8 new CNG door-to-door refuse trucks, in an amount not to exceed $303,068, from the Carl Moyer Program Fund.
    
    
22. A contract with the City of Glendora to cost-share the purchase of 3 new CNG shuttle buses, in an amount not to exceed $34,619, from the Carl Moyer Program Fund.
    
    
23. A contract with the City of Huntington Beach to cost-share the purchase of 4 new CNG/diesel short haul dump bed trucks, and 1 new LPG street sweeper, in an amount not to exceed $33,868, from the Carl Moyer Program Fund.
    
    
24. A contract with the City of Placentia to cost-share the purchase of 1 new CNG local haul and delivery truck, and 2 new CNG street sweepers, in an amount not to exceed $15,733, from the Carl Moyer Program Fund.
    
    
25. A contract with the City of Santa Ana to cost-share the purchase of 2 new CNG dump trucks, and 4 new CNG street sweepers, in an amount not to exceed $30,154, from the Carl Moyer Program Fund.
    
    
26. A contract with the County Sanitation Districts of Los Angeles County to cost-share the purchase of 1 new LNG street sweeper, in an amount not to exceed $46,035, from the Carl Moyer Program Fund.
    
    
27. A contract with Foothill Transit to cost-share the purchase of 51 new CNG transit buses, in an amount not to exceed $386,458, from the Carl Moyer Program Fund.
    
    
28. A contract with OCTA to cost-share the purchase of 44 new LNG transit buses, in an amount not to exceed $352,000, from the Carl Moyer Program Fund.
    
    
29. A contract with Los Angeles MTA to cost-share the purchase of 361 new CNG transit buses, in an amount not to exceed $2,888,000, from the Carl Moyer Program Fund.
    
    
30. A contract with Omnitrans to cost-share the purchase of 35 new CNG transit buses, in an amount not to exceed $372,272, from the Carl Moyer Program Fund.
    
    
31. A contract with Family Care for the Elderly to cost-share the repower of 1 diesel transit bus, in an amount not to exceed $33,412, from the Carl Moyer Program Fund.
    
    
32. A contract with London Bus and Taxi to cost-share the repower of 3 CNG tour buses, in an amount not to exceed $194,040, from the Carl Moyer Program Fund.

Authorize the Chairman to modify the following contract from the FY 1999-00 Carl Moyer Program Fund, to clarify the award language:

1. A contract with Waste Management of the Desert to repower 7 roll-off refuse collection trucks to LNG, in an amount not to exceed $526,547, $75, 221 from the Clean Fuels Fund and $451,326 from the FY 1999-00 Carl Moyer Program Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

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 minimum $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 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). Additionally, the Port of Los Angeles has contributed $316,410, to be used as matching funds. A total of $21,250,959 was available for the Carl Moyer FY 2000-01 project awards. The CEC’s funding is for infrastructure support only.

The Governing Board approved the release of RFP #P2001-26 to solicit projects for low-emission, on- and off-road vehicles and equipment. The on-road vehicle category is evaluated and awards are recommended in this letter. At their July 20, 2001 meeting, the Governing Board approved the awards for the off-road and infrastructure categories. Table 4 illustrates the award categories, funding amount and program balance for both the projects approved in July and those recommended for approval in this Board letter.

Proposal

These recommended awards total $13,304,405 which is for the projects recommended in this Board letter. This Board letter is for approval of the second round of funding recommendations for the FY 2000-01 Carl Moyer Program. The proposals were ranked by clean fuel preference and then by cost-effectiveness based on the Carl Moyer Program guidelines dated November 16, 2000 and the RFP #P2001-26 issued by the AQMD.

On-Road Class 5/6, Class 7/8
Vehicles greater than 14,000 pounds gross vehicle weight are considered heavy-duty vehicles. In California, on-road mobile sources account for about 50 percent of total NOx emissions. Even though heavy-duty diesel vehicles, including urban buses, account for less than two percent of all on-road vehicles, they emit about 25% of the statewide NOx emissions and over 70% of the exhaust PM emissions for all on-road vehicles. In 1998, heavy-duty diesel vehicles emitted 424 tons per day of NOx and 26 tons per day of exhaust PM emissions statewide. In addition, heavy-duty vehicle miles traveled are projected to increase by about 30% by 2010.

Table 1 summarizes the staff’s recommendation of awards Class 5/6 and 7/8 on-road trucks. All proposals received in the Class 5/6 category are recommended for funding. All alternative fueled proposals received in the Class 7/8 category are also recommended for funding. Total funding in this category is slightly above $5 million dollars, the lower part of the RFP funding range. Projects in this category total $5,479,191 with 121.9 tons per year (T/year) NOx reductions and 2.6 T/year reductions of PM.

Transit
All transit category projects received are recommended for funding. Table 2 summarizes the on-road transit category and totals $4,646,182. Total emission reductions from the transit category are 281.36 T/year of NOx and 12.92 T/year of PM. The Moyer Program funding level for urban buses is significantly lower than in the past. This year ARB modified the calculation methodology so that the 80% of an urban bus paid for by Federal Transit Administration Funds is not eligible for consideration. As a result, a greater number of buses are partially funded, but at a much lesser amount per bus. This year approximately $4.6 million will co-fund 507 urban buses.

On-Road Other
Table 3 summarizes award recommendations for the on-road other category and totals $3,179,032 for the purchase of 273 pieces of new alternative fuel equipment. Total emission reductions from this category are 64 T/year of NOx and 0.7 T/year of PM. The on-road other category is composed of small fleets of 20 vehicles or less, public sector fleets, inter-district alternative fuels vehicles and diesel-to-diesel replacement. In keeping with the AQMD’s alternative fuel priority, proposals for alternative fuel on-road other vehicles and equipment were evaluated and ranked before diesel projects were considered. No diesel-to-diesel projects were funded under this category.

FY 1999-00 Award Modification
One award modification is requested for Waste Management of the Desert. The award modifies the contract from six repowers and purchase of one new vehicle to the repower of seven refuse vehicles to LNG as originally requested under their proposal. The Carl Moyer Program requires a specific amount of matching funds to be spent in each program year. This award modification is to clarify the type of equipment to be purchased and does not modify the funding amounts nor the category from which they were funded. The amount specified as Clean Fuel Funds ($75,221) were part of the original award and part of the required matching funds for FY 1999-00.

Projects To Be Awarded
Approximately $8 million dollars in proposals were received requesting funding to repower marine vessels and $989,962 dollars in proposals for diesel to diesel conversions for regional line haulers and refuse roll–off vehicles. The staff is currently sorting out the marine vessel funding under the $2 million RECLAIM-AQIP program, the $5.1 million mitigation fee program, and the ARB’s NOx and PM emission reduction program. Staff will be bringing a Carl Moyer award proposal to the Board later this year. Staff is advising diesel to diesel conversions project applicants to consider revising their proposals to alternative fuels which will be recommended for project funding later this year.

Total Emission Reductions
Table 4 lists the actions taken by the Board for the FY 2000-01 Carl Moyer program, the actions recommended in this board letter and the cumulative emission reductions for both.

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	25.	Wave
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 reductions from the proposed project are approximately 467.2 tons/year of NOx and 16.4 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 $13,304,405. 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 On-Road Trucks
Class 5/6, and 7/8
 

Table 2
FY 2000-01 Carl Moyer Program
Proposed Awards for Transit Buses
 

Table 3
FY 2000-01 Carl Moyer Program
Proposed Awards for On-Road Other
 

Attachments

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