South Coast Air Quality Management District

Execute Contracts for AQIP Proposals Received During First Quarter of 2002

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 2002. This action is to recommend three for funding. The amount available for this quarter is $667,212.

COMMITTEE: 

Mobile Source, June 28, 2002, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute three contracts for a total amount not to exceed $631,792 from the AQIP Special Revenue Fund to obtain mobile source emission reductions with Jaguar Tractor for an amount not to exceed $39,792; with Seaboard Marine for an amount not to exceed $92,000; and with Air Quality Management Services for an amount not to exceed $500,000.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

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 2002.

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 the 2002 participation period ended on March 31, 2002 with 49 employers participating in the AQIP program. The total amount of AQIP funds received during this period was $1,609,150.10, which includes both annual and triennial participants (see Attachment 1). In addition, $233,431.45 is being carried forward from the previous quarters. The Board, at its meeting on June 21, 2002, authorized the Executive Officer to allocate $1,175,370 from the CY 2002 1^st quarter Special Revenue Fund, Rule 2202 Account to assist in the purchase of natural gas vehicles for taxicab services. Therefore the total amount available for this quarter is $667,211.55 (see Attachment 1, Table 4). Staff recommends that $631,792 be used to purchase emission reductions to satisfy the target for the quarter.

Proposal Evaluation

During the bidding process of the first quarter of 2002, 19 proposals were received requesting funds ranging from $39,792 to $1,599,000. The project proposals received can be grouped in four categories: Transportation Demand Management, Old-Vehicle Scrapping, Marine Vessels, 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 comprised of one Transportation Programs Manager, one Technology Advancement Program Manager, two Technology Advancement Program Supervisors, one Planning and Rules Air Quality Specialist, and one Transportation Specialist; two females and four males; one Asian-Indian, three Caucasian, and two Hispanic. Attachment 5 discusses the selection criteria and the overall ratings for each proposal.

Attachment 5 also provides a summary of the proposal rankings. While cost-effectiveness is a heavily weighted criterion for determining ranking and selection of proposals, the amount of funding available, status of the Emissions Bank, and the desire to diversify types of projects ultimately determines the staff recommendation. The proposals submitted by Jaguar Tractor, Seaboard Marine and Air Quality Management Services were not necessarily the most cost-effective in regard to available funds, but met the necessary emission reduction targets, and provided multi-pollutant benefits.

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

1. Jaguar Tractor	$39,792 County: Orange
Jaguar Tractor proposes to generate emission reductions by retrofitting 3 dual engine scrapers with oxidation catalysts. The cost-effectiveness of this proposal is $0.86 per pound.
2. Seaboard Marine (Proposal 1)	F/V Misty Moon    $92,000 County: Los Angeles
Seaboard Marine proposes to generate emission reductions by re-powering fishing vessel (F/V) ‘Misty Moon’ for five years (Option 6A). Average cost-effectiveness of this proposal $1.17 per pound.
3. Air Quality Management Services (Proposal 2)	$500,000 County: Los Angeles
Air Quality Management Services proposes to generate MSERCs by eliminating pre-1982 vehicles through old-vehicle scrapping. The cost-effectiveness of this proposal is $1.75 per pound. (Partial funding)

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	11.	La Opinion	21.	Precinct Rporter
2.	Black Voice News	12.	La Prensa Hispana	22.	Rafu Shimpo
3.	Chinese Daily News	13.	La Voz	23.	Riverside Press Enterprise
4.	Eastern Group Publications	14.	Los Angeles Daily News	24.	San Bernardino Sun
5.	El Chicano	15.	Los Angeles Sentinel	25.	Santa Clarita Signal
6.	El Informador	16.	Los Angeles Times	26	State of California Contracts
7.	Excelsior, The	17.	M/W/DVBE Source		Register
8.	Inland Empire Hispanic News	18.	Orange County Register	27.	Register
9.	Inland Valley Daily Bulletin	19.	Palm Springs Desert Sun	28.	Wave Community Newspapers
10.	Korea Central Daily	20.	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 28, 2002 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 2002

TABLE 1

Funds Received (as of March 31, 2002)

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 3, 2002. The proposals are listed alphabetically, not by classification or rank.

1. Air Quality Management Services (Proposal 1)	$1,205,431 County: Los Angeles
Air Quality Management Services proposes to generate emission reductions by re-powering outboard powerboats operating on gasoline. The cost-effectiveness of this proposal is $1.64 per pound. (Not funded.)
2. Air Quality Management Services (Proposal 2)	$601,350 County: Los Angeles
Air Quality Management Services proposes to generate MSERCs by eliminating pre-1982 vehicles through old-vehicle scrapping. The cost-effectiveness of this proposal is $1.75 per pound. (Partially funded.)
3. Altfillisch Contractors.	$894,112 County: Riverside
Altfillisch Contractors proposes to generate emission reductions by re-powering 8 diesel engines used in its off-road construction equipment. The cost-effectiveness of this proposal is $1.25 per pound. (Not funded.)
4. California Street Maintenance	$560,000 County: Los Angeles
Nationwide Environmental Services proposes to generate emission reductions by replacing eight pre-1987 diesel street sweepers with new lower-emission propane sweepers. The cost-effectiveness of this proposal is $1.02 per pound. (Not funded.)
5. Cattrac Construction, Inc.	$49,368 County: San Bernardino
Cattrac Construction, Inc. proposes to generate emission reductions by re-powering 1 diesel engine used in its off-road construction equipment. The cost-effectiveness of this proposal is $1.15 per pound. (Not funded.)
6. R. F. Dickson Co., Inc.	$664,000 County: Los Angeles
R. F. Dickson Co., Inc. proposes to generate emission reductions by re-powering 4 pre-1985 diesel street sweepers, and replacing 4 others with CNG sweepers. The cost-effectiveness of this proposal is $3.88 per pound. (Not funded)
7. Don McCoy Corporation (Proposal 1)	$64,405 County: Orange
Don McCoy Corporation proposes to generate emission reductions by re-powering 1 diesel engine used in its off-road construction equipment. The cost-effectiveness of this proposal is $1.02 per pound. (Not funded.)
8. Don McCoy Corporation (Proposal 2)	$69,180 County: Orange
Don McCoy Corporation proposes to generate emission reductions by retrofitting 10 diesel engine scrapers with oxidation catalysts. The cost-effectiveness of this proposal is $0.84 per pound. (Not funded.)
9. Earthguard Environmental Services	Option 1       $90,190 Option 2     $411,450 Option 3     $799,500 Option 4  $1,279,200 Option 5  $1,599,000   County: Los Angeles
Earthguard Environmental Services proposes to provide AQMD-approved Emission Reduction Credits (ERCs) from stationary sources generated by "Process Change." The quantification of these ERCs was 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 $2.50 to $2.75 per pound. (Not funded.)
10. Ebsteiner Co.	$580,000 County: Los Angeles
Ebsteiner Co. proposes to generate emission reductions by re-powering 10 diesel engines used in its off-road construction equipment. The cost-effectiveness of this proposal is $1.29 per pound. (Not funded.)
11. F.S.T. Sand & Gravel, Inc.	$408,423 County: Riverside
F.S.T. Sand & Gravel, Inc. proposes to generate emission reductions by re-powering 7 diesel engines used in its off-road construction equipment. The cost-effectiveness of this proposal is $0.85 per pound. (Not funded.)
12. Jaguar Tractor	$39,792 County: Orange
Jaguar Tractor proposes to generate emission reductions by retrofitting 3 dual engine scrapers with oxidation catalysts. The cost-effectiveness of this proposal is $0.86 per pound. (Funded)
13. Nelson & Belding Contracting	$130,976 County: Los Angeles
Nelson & Belding Contracting proposes to generate emission reductions by re-powering 2 diesel engines used in its off-road construction equipment. The cost-effectiveness of this proposal is $1.17 per pound. (Not funded.)
14. On Trac	$400,000 County: Orange
On Trac proposes to achieve emission reductions from reduced trip reductions by installing special computer software. The cost-effectiveness of this proposal is $6.11 per pound. (Not funded.)
15. Pick Your Part Auto-Wrecking	Option 1      $500,000 Option 2      $750,000 Option 3   $1,000,000 Option 4   $1,300,000 County: All
Pick Your Part Auto-Wrecking proposes to generate MSERCs by eliminating pre-1982 vehicles through old-vehicle scrapping. The cost-effectiveness of all four proposals is $3.31 per pound. (Not funded.)
16. Seaboard Marine (Proposal 1)	F/V Seahorse          $87,300 & $91,655 F/V Fin Fever      $103,700 & $105,000 F/V Sum Fun           $73,200 & $76,860 F/V Mello Boy    $160,000 & $168,000 F/V Reveille            $79,000 & $82,950 F/V Misty Moon     $92,000 & $96,600 F/V First String   $146,000 & $153,300 County: Los Angeles
Seaboard Marine proposes to generate emission reductions by re-powering seven diesel powered marine fishing vessels (F/V) over five to seven years. Average cost-effectiveness of this proposal ranges from $0.762 to $4.58 per pound. (Option 6A funded.)
17. Seaboard Marine (Proposal 2)	Option 1      $183,000 Option 2      $206,000 Option 3        $70,000 Option 4A   $340,000 Option 4B   $145,000 County: Los Angeles
Seaboard Marine proposes to generate emission reductions by re-powering outboard power boats operating on gasoline using 4-stroke engines. Option 1 is a five year proposal to re-power 50 fishing & pontoon boats at a cost-effectiveness of $0.22 per pound; Option 2 is a five year proposal to re-power 12 movie production and support boats at a cost-effectiveness of $0.20 per pound; Option 3 is a five year proposal to re-power 3 commercial fishing boats at a cost-effectiveness of $0.12 per pound; Option 4A is a five year proposal to re-power 72 rental fishing and pontoon boats at a cost-effectiveness of $0.14 per pound and Option 4B is a five year proposal to re-power 13 rental excursion boats and jet skis at a cost-effectiveness of $0.09 per pound (Not funded.)
18. Sukut Construction, Inc.	$751,922 County: Orange
Sukut Construction, Inc. proposes to generate emission reductions by re-powering 16 diesel engines used in construction machines. The cost-effectiveness of this proposal is $1.26 per pound. (Not funded.)
19. VPSI Inc.	$153,900 County: All
VPSI Inc. proposes to generate emission reductions by replacing 20 gasoline cars used in the "Meals On Wheels" program with electric cars. The cost-effectiveness of this proposal is $100.64 per pound. (Not funded.)

ATTACHMENT 4

Proposal Summary By Type

ATTACHMENT 4
(Continued)
 

ATTACHMENT 4
(Continued)
 

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)
 

ATTACHMENT 5
(Continued)
 

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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