South Coast Air Quality Management District

Execute Contracts to Fund Diesel Particulate Trap Retrofit Projects for Local and Regional Public Fleets Under State Emissions Mitigation Program

SYNOPSIS:

On July 12, 2002, the AQMD issued a program announcement in the amount of $2.35 million, soliciting applications from local and regional public agencies to retrofit heavy-duty diesel vehicles with particulate filters. A total of 16 applications were received. Staff recommends making awards to retrofit 581 diesel vehicles with particulate filters. Of these, 394 vehicles will be funded with $2,344,300 available under PA2003-04, and the remaining 187 vehicles will be funded with reallocation of $1,103,300 from an unexecuted contract with California Clean Engine Coalition under the State Emissions Mitigation Program. Total amount of the awards shall not exceed $3,447,600 for the purchase and installation of the 581 particulate filters.

COMMITTEE:

Technology, August 23, 2002. Less than a quorum was present during the discussion of this item; the Chairman communicated his concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

RECOMMENDED ACTION:

1. Authorize the Chairman to approve grants to local and regional public agencies, as set forth in Table 1, to fund the retrofit of 394 eligible diesel vehicles with particulate filters, for a total amount not to exceed $2,344,300 from the State Emissions Mitigation Fund.
   
   
2. Authorize Chairman to approve a grant to the City of Los Angeles, as set forth in Table 1, to fund the retrofit of 187 eligible diesel vehicles with particulate filters, by reallocating funds from an unexecuted contract with the California Clean Engine Coalition in an amount not to exceed $1,103,300 million from the State Emissions Mitigation Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Under the State Emissions Mitigation Program, CARB recently allocated $3.1 million to the AQMD to retrofit local and regional public fleets with particulate traps. Of these funds, as required in CARB’s grant provisions, the Board, at its July 12, 2002 meeting, approved to pass $750,000 to the City of Los Angeles to retrofit approximately 125 vehicles with particulate traps. The Board also approved issuance of Program Announcement PA2003-04 in an amount not to exceed $2.35 million, which solicited applications from local and regional public agencies for particulate trap retrofit projects.

Under the PA2003-04, eligible vehicles include those heavy-duty, diesel vehicles that are equipped with 1994 or newer model year engines for which particulate filters (Level 3) have been verified by CARB. Transit buses and refuse haulers are not eligible for funding under this program according to CARB’s grant provisions.

A total of 16 applications were received by the due date of August 7, 2002. From a list of 607 vehicles, 581 vehicles were deemed eligible for retrofit under this program. The vehicles that did not qualify for funding were excluded because they were equipped with pre-1994 model year engines, with the exception of the Norwalk-La Mirada Unified School District application. This application for school bus retrofits will be funded under the current Lower Emission School Bus Replacement and Retrofit Program Announcement (PA2003-05). The Lower Emission School Bus Program will provide additional funds amounting to $500 for the purchase of low-sulfur diesel fuel.

Staff is recommending that all 581 eligible vehicles be awarded funding. However, the amount of funds needed to award all eligible vehicles exceeds the $2.35 million available under PA2003-04. Since the program is oversubscribed, staff recommends, with CARB approval, that funds from a previously approved but unexecuted contract with the California Clean Engine Coalition (RMA – Ryerson, Master and Associates, Inc.) under the State Emissions Mitigation Program be reallocated for this retrofit program.

On July 20, 2001, the Board approved funding for credit generation projects including a contract with California Clean Engine Coalition for marine vessel projects in an amount not to exceed $1.293 million. However the California Clean Engine Coalition later proposed projects that were inconsistent with what the Board and CARB had approved. As a result, staff informed California Clean Engine Coalition and CARB that they would not execute the contract and CARB has concurred in this matter. Staff therefore recommends that $1,103,300 from the California Clean Engine Coalition be reallocated for this program to fund the portion of eligible vehicles that cannot be funded with the $2.35 million available under PA2003-04. This includes 187 vehicles owned and operated by the City of Los Angeles. With this reallocation, all applications with eligible vehicles will be awarded funding.

The recommended awards are set forth in attached Table 1. Local and regional public agencies receiving funds under this program will retain the option of selecting from the qualified vendors whose particulate filters have been verified by CARB.

CARB requires a local match of $1 for every $1 funded under this PM retrofit program. AQMD submitted a proposed list of projects to be considered by CARB as local match funds. Based on the list as shown in Table 2, CARB approved AQMD’s requested local match in the amount of $3,258,000 for the $3.1 million allocated by CARB for this program. CARB has agreed that a local match is not required for the reallocated funds totaling $1,103,300, since these funds were intended for a previously approved project under the State Emission Mitigations Fund.

Benefits to AQMD

The successful implementation of this program will result in mitigation of excess particulate matter emissions produced by peaking power plants, which must operate to accommodate peak electrical loads. All of these projects will also produce concurrent toxic compounds emissions reductions (e.g. lowered diesel exhaust particulate), which is an additional benefit. Finally, administration of this program at the local level will provide greater certainty and confidence for achieving the emission reductions since the AQMD has acquired experience and expertise in identifying emission sources and available control or prevention technologies.

Resource Impacts

The total amount of funding for the particulate trap retrofit projects identified in Table 1 shall not exceed $3,447,600. Sufficient funds are available from the State Emissions Mitigation Fund, which has been established as a separate fund the by AQMD.

TABLE 1
PARTICULATE TRAP RETROFIT AWARDS RECOMMENDATION LIST
 

* This award for school bus retrofits will be funded under the Lower Emission School Bus Replacement and Retrofit Program Announcement (PA2003-05).

** The application submitted by the City of Los Angeles involved a request for 384 retrofits. Of these, 197 will be funded under PA2003-04, and the remaining 187 will be funded, as approved by CARB, with reallocated funds from an unexecuted contract under the State Emissions Mitigation Fund.

TABLE 2
LOCAL-MATCH FUNDS FOR PM RETROFIT PROGRAM
IN THE SOUTH COAST AIR BASIN
 

* MSRC – Mobile Source Air Pollution Reduction Review Committee

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