South Coast Air Quality Management District

Execute Contracts for On-Road and Marine Categories Under FY 2001-02 Carl Moyer Memorial Air Quality Standards Attainment Program

SYNOPSIS:

On March 29, 2002, proposals were received in response to an RFP for the Carl Moyer Memorial Air Quality Standards Attainment Program. On June 2, 2002, the Board approved projects for a total cost of $8,792,798. Staff recommends award of two additional contracts to the On-Road and Marine project categories and the modification of two previous awards under the 2001-02 Moyer Program. Total additional cost to the Carl Moyer Program Special Revenue Fund will not exceed $530,580.

COMMITTEE:

Technology, September 27, 2002, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute the following contracts from the Carl Moyer Program Fund FY 2001-02 allocation:

1. A contract with Mountain Area Rapid Transit Authority (MATRA) to purchase one new CNG paratransit vehicle, in an amount not to exceed $8,748.
   
   
2. A contract with Seaboard Marine to repower 2 marine vessels, in an amount not to exceed $242,700.

Authorize the Chairman to modify the following contracts for the Carl Moyer Program Fund FY 2001-02 allocation:

1. Modify the contract with Nationwide Environmental Services from the purchase of 6 new LPG street sweepers to the purchase of 6 new CNG street sweepers, and increase the existing award of $226,134 approved by the Governing Board on June 7, 2002 by $1,194. Total award shall not exceed $227,328.
   
   
2. Modify the contract with R. F. Dickson to purchase 11 new CNG street sweepers and repower 4 CNG street sweepers, by increasing the existing award of $436,862 approved by the Governing Board on June 7, 2002 by $277,938. Total award shall not exceed $714,800.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

FY 2001-02 was the fourth year of the Carl Moyer Memorial Air Quality Standards Attainment Program in the South Coast Region. Last year, Governor Davis and the Legislature placed $16 million in CARB's FY 2001-02 Budget to continue the Moyer program for low-emission heavy-duty vehicles. A new requirement was added to the distribution of funds pursuant to AB 1390 (Firebaugh). Each air district must spend at least 50% of their allotted funds to directly benefit communities that are disproportionately impacted by air pollution.

On June 7, 2002, the Board approved projects for a total cost of $8,792,798. As a result, remaining funds of $6,634,286 are available for future projects. This board letter seeks approval for the remaining eligible projects under the first release of RFP #P2002-22 and the modification of two previous awards.

Proposal

Staff is recommending approval of two new projects and modification of two existing awards. The Mountain Area Transit Authority has requested funding to purchase one newer CNG paratransit vehicle. This is a Class 5 vehicle and is representative of a trend toward smaller vehicles by the transit agencies. This project is located in an AB 1390 area. Staff is also recommending funding toward the repower of two marine vessels by Seaboard Marine. These vessels are based in Orange County. Funds were awarded based on cost effectiveness.

On June 7, 2002, the Board approved a contract with Nationwide Environmental Services to purchase six new LPG street sweepers in an amount not to exceed $226,134. Staff was recently advised that the manufacturer has stopped producing the LPG engine. The applicant has proposed substitution of a CNG engine that achieves a greater cost-effectiveness. However, the total cost will increase the award by $1,194. Total amount of the new con-tract will result in additional NOx reductions of 2.71 tons/year and shall not exceed $227,328.

On June 7, 2002, the Board also approved a contract with R.F. Dickson to purchase 11 new CNG street sweepers and repower four CNG street sweepers, in an amount not to exceed $436,862. At the time of approval there were no certified off-road auxiliary engines for street sweepers and R. F. Dickson proposed to use a small Baytech on-road engine as an auxiliary engine for the street sweepers. Since that time CARB has certified an appropriate off-road engine which R.F. Dickson will be using in this application. The new cer-tified off-road engine is cleaner than the Baytech engine. The increase in the award is due to the increased efficiency of the certified engine, and the cost effectiveness limit for off-road engines ($13,000 ton/NOx) as opposed to the on-road cost-effectiveness limit of $6,000 ton/NOx. This results in an additional NOx reduction of 1.22 tons/year, and in-creases the award by $277,938 to a total sum of $714,800. R. F. Dickson is qualified for the award under the provisions of AB1390 as a company located in a disproportionately impacted area.

Table 1 and 2 summarize the emission reductions and recommended awards for these projects and modification under the AB 1390 requirements and on the cost-effectiveness ba-sis, respectively. With the approval of this board letter, 59 percent of the Moyer fund will have been awarded in the AB 1390 category which exceeds the 50 percent state requirement.

As of June of this year, the total funding available for the FY 2001-02 Moyer program was $15,427,084 million. In June, the Board approved $8,792,798 in project funding. Total cost for the recommended two new projects and the modification of two existing awards is $530,580. This will bring the total Moyer expenditure under FY2002-02 to $9,323,378. The additional project solicitation under RFP #P2002-22R results in approximately $29 million worth of request. The demand significantly exceeds the avail-able balance of the Moyer fund. Staff is in the process of evaluating and selecting projects and will bring to the Board for approval in the next few months.

TABLE 1
PROJECT AWARDS BASED ON
AB 1390 SCORES
 

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. The NOx reductions from the additional proposed projects are 6.07 tons per year; cumulative total for the FY 2001-02 Moyer program is approximately 320 tons/year. The vehicles and equipment proposed will operate many years, providing long-term emissions reductions.

Resource Impacts

Total cost for the proposed projects is $530,580. 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 ARB through local air districts. Funds from this program are restricted to be used as incentives to private com-panies or public agencies operating heavy-duty engines in California to cover an incre-mental portion of the cost of cleaner on-road, off-road, marine engines, and APUs.

The AQMD cost share for the FY 2001-02 Carl Moyer Program is included in the March 2002 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. The required local match funding for FY 2001-02 is $3.5 million, and is provided from qualified local match projects funded in 2001. Attachment 1 lists the qualified match projects approved by the Governing Board last year. These projects meet the local match criteria for the Moyer Program.

Attachment

1. Local Match Requirement

LOCAL MATCH REQUIREMENT
FUNDED PROJECTS
As of October 24, 2001

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