BOARD MEETING DATE: March 1, 2002
AGENDA NO. 10

Modify Contracts Executed Under FY 1999-00 Carl Moyer Program

SYNOPSIS:

Under the CARB’s FY 1999-00 Carl Moyer Program, ENRG (formerly Pickens Fuel Corporation) was awarded infrastructure development funding for five stations. Negotiations with two of those stations have been terminated. ENRG is requesting that the funding awarded for these two sites be transferred to two new sites for which contracts are being negotiated. The new sites meet or exceed the cost effectiveness and fuel throughput requirements set forth under the Carl Moyer Program. Staff recommends approval of a no-cost contract amendment allowing the Carl Moyer Funds to be used for these two new stations.

COMMITTEE:

Technology, February 22, 2002, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a no-cost contract amendment with ENRG (formerlyPickens Fuel Corporation) allowing Carl Moyer Funds to be used at CR&R and Rainbow Disposal.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Alternative fuel vehicles, such as natural gas vehicles have demonstrated significantly lower NOx emissions than diesel fueled vehicles. Recent Board actions to provide funding assistance for the expansion of the natural gas fueling infrastructure will lead to further commercialization of natural gas vehicles. At its August 18, 2000 meeting, the Governing Board approved the execution of contracts under the CARB’s FY 1999-2000 Carl Moyer Program for developing a fueling infrastructure. Those projects will help establish a basin-wide natural gas fueling infrastructure for both compressed natural gas (CNG) and liquefied natural gas (LNG).

Proposal

ENRG (formerly Pickens Fuel Corporation) was awarded infrastructure development funding for five stations. ENRG has stated that contract negotiations with two of those stations - CalMet and Waste Management – San Gabriel have been terminated. ENRG is requesting that the funding originally awarded to them for these two sites be transferred to two other sites they are negotiating contracts with. The two other disposal companies - CR&R (in San Juan Capistrano) and Rainbow Disposal (in Huntington Beach) each meet or exceed the cost effectiveness and fuel throughput requirements set forth under the Moyer Program. In addition, both of these companies have been seeking additional funding in order to make their projects viable. The proposed transfer of the original Carl Moyer awards of $400,000 would provide sufficient funds to complete the two projects.

Benefits to AQMD

The AQMP relies on the expedited implementation of advanced technologies and clean–burning fuels in Southern California to achieve air quality standards. By constructing more natural gas fueling facilities, benefits from this project will accrue to all cities and area residents. Such new construction will provide a coordinated effort, plan for growth of the overall infrastructure, and help reduce costs associated with duplication of effort. While having no direct impact on air emission reductions, new CNG-LCNG stations will help facilitate the introduction of low emission, natural gas fueled refuse trucks in private and public fleets in the area. Such increased penetration of natural gas fueled refuse trucks will provide direct emissions reductions of NOx, PM, and toxic compounds throughout the Basin.

Resource Impacts

Total cost for the two new projects is $400,000, however no new or additional costs are being incurred. 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 CARB. The objective of the Carl Moyer Program is to accelerate the introduction of low-emission heavy-duty engines. Funds are distributed by the CARB 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 engines.

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