BOARD MEETING DATE: February 7, 2003
AGENDA NO. 5

Execute Contracts for FY 2001-02 Carl Moyer Memorial Air Quality Standards Attainment Program and Executive Officer’s Mitigation Program

SYNOPSIS:

On September 10, 2002, proposals were received in response to an RFP for the Carl Moyer Memorial Air Quality Standards Attainment Program. Staff is recommending awards not to exceed $8,995,348 from the Carl Moyer special revenue fund. Staff is also recommending awards not to exceed $2,225,089 from the Executive Officer’s Mitigation Program Fund. Lastly, staff is recommending no cost modifications of two previous awards, one under the Carl Moyer program and one under the Executive Officer’s Mitigation program.

COMMITTEE:

Technology, January 24, 2003. All recommended actions were recommended for approval by Committee with the exception of proposed contracts #6 & #8 which is being forwarded to the full Board for consideration.

RECOMMENDED ACTIONS:

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

1. A contract with Western Transit Systems to purchase 5 new CNG shuttle buses, in an amount not to exceed $66,613.
2. A contract with United Western Grocers to purchase 15 new LPG yard spotters, in an amount not to exceed $126,750.
3. A contract with Hotel Airport Shuttle.Com to purchase 10 new LPG shuttle buses, in an amount not to exceed $181,400.
4. A contract with WXRT Express Reefer Transport to purchase 25 new trucks, in an amount not to exceed $2,000,000.
5. A contract with WXRT-WalMart to purchase 20 new LNG trucks, in an amount not to exceed $630,000.
6. A contract with Waste Management of Orange County – Dewey’s to purchase 21 new CNG refuse haulers, in an amount not to exceed $555,765.
7. A contract with Blue Barrel Disposal to purchase 14 new LNG refuse haulers, in an amount not to exceed $349,570.
8. A contract with Waste Management of San Gabriel/Pomona Valley to purchase 12 new LNG refuse haulers, in an amount not to exceed $319,728.
9. A contract with Sun Valley Hauling to purchase 10 new LNG refuse haulers, in an amount not to exceed $269,671.
10. A contract with California Street Maintenance to purchase 4 new LPG street sweepers, in an amount not to exceed $151,552.
11. A contract with Webco Sweeping to purchase 2 new CNG street sweepers, in an amount not to exceed $104,608.
12. A contract with Nationwide Environmental to purchase 6 new CNG street sweepers, in an amount not to exceed $313,824.
13. A contract with Sysco to purchase 30 new LNG/diesel local delivery trucks, in an amount not to exceed $315,900.
14. A contract with London Bus and Taxi to repower 3 CNG tour buses, in an amount not to exceed $47,976.
15. A contract with the County of Los Angeles Department of Public Works to purchase 5 new LPG street sweepers, in an amount not to exceed $30,750.
16. A contract with the City of Costa Mesa Department of Public Services to purchase 1 new CNG street sweeper, in an amount not to exceed $37,177.
17. A contract with the City of San Clemente to purchase 1 new CNG street sweeper, in an amount not to exceed $23,400.
18. A contract with the City of Whittier to purchase 1 new CNG refuse hauler and 1 new CNG maintenance truck, in an amount not to exceed $77,589.
19. A contract with Long Beach Energy to purchase 11 new CNG/diesel refuse haulers, in an amount not to exceed $362,233.
20. A contract with the City of Riverside to purchase 1 new CNG hydro-jet sewer truck and 1 new CNG water service truck, in an amount not to exceed $9,427.
21. A contract with the City of Compton to purchase 5 new CNG transit shuttle buses, in an amount not to exceed $52,485.
22. A contract with Omnitrans to purchase 111 new CNG paratransit vehicles, in an amount not to exceed $1,121,100.
23. A contract with Altfillisch Contractors Inc., to repower 13 diesel scrapers, in an amount not to exceed $806,034.
24. A contract with Herigstad Equipment Rental to repower 1 earthmover, in an amount not to exceed $115,596.
25. A contract with Seaboard Marine to repower 3 diesel-powered marine vessels, in an amount not to exceed $812,200.
26. A contract with Norco Egg Ranch to repower 38 diesel/electric auxiliary power units, in an amount not to exceed $114,000.

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

1. A contract with California Street Maintenance to purchase 15 new LNG street sweepers instead of 15 new CNG street sweepers in the same amount of $315,975, approved by the Board on September 21, 2001.

3. Authorize the Chairman to execute the following contracts under the RECLAIM
   Executive Order Emissions Mitigation Program Fund:

1. A contract with City of Ontario to replace 15 Class 7/8 diesel-fueled trucks with 15 new CNG-fueled Class 7/8 refuse haulers, in an amount not to exceed $648,000.
2. A contract with City of Long Beach to replace 22 Class 7/8 diesel-fueled trucks with 22 CNG-fueled Class 7/8 refuse haulers, in an amount not to exceed $724,467.
3. A contract with Seaboard Marine to re-power three diesel-fueled marine vessels with new low-emitting diesel engines, in an amount not to exceed $477,150.
4. A contract with OceanAir Environmental to re-power five diesel-fueled marine vessels with new low-emitting diesel engines, in an amount not to exceed $375,472.

4. Authorize the Chairman to modify the following award under the RECLAIM Executive Order Emissions Mitigation Program Fund:

1. A contract with Air Quality Management Services to electrify up to 34 agricultural pumps less than 250 hp each instead of 29 250 hp pumps, in the same amount of $1,762,446, approved by the Board on August 2, 2002.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

This is the fourth year of the Carl Moyer Memorial Air Quality Standards Attainment Program in the South Coast region. This 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 allot-ted funds to directly benefit communities that are disproportionately impacted by air pol-lution. This year to date, the AQMD has awarded $5,535,815 under AB 1390 and $3,878,563 under the cost-effectiveness criteria.

On September 10, 2002, proposals were received in response to RFP #P2002-22R for the Carl Moyer Memorial Air Quality Standards Attainment Program. Over $29 million in proposals were received. Table 1 shows the total amount of funds available for awards, including turned-back funds from previous Carl Moyer awards. Table 2 shows the de-tailed breakdown of the turn back funds.

Table 1
Carl Moyer Program
FY 2001-02, Available Funds
Second Round
 

Table 2
Turn Back Funds
 

Under the RECLAIM EO Emissions Mitigation program, staff proposes to fund the purchase of new CNG-fueled Class 7/8 refuse haulers and re-power marine vessels to generate NOx emissions credits under pilot credit generation Rules 1612.1 and 1631, respectively. The projects are listed in Table 5. The AQMD must generate NOx emissions credits under the RECLAIM EO Emissions Mitigation Program during the next three years. No specific solicitation was issued for projects under this program. However, the program solicitation under Carl Moyer which closed on September 10, 2002, was over subscribed and some of the proposals were deemed qualified for the RECLAIM EO Emissions Mitigation Program. Therefore, projects listed in Table 5, which include refuse haulers and marine vessels are selected and recommended for funding under the RECLAIM EO Emissions Mitigation Program. All the remaining class 7/8 refuse hauler proposals are being funded under the Carl Moyer program. The marine vessels selected for the EO Program meet its 100 percent captive requirement of Rule 1631.

Table 5
RECLAIM EO Emissions Mitigation Program Projects
 

Under the RECLAIM EO Emissions Mitigation program, staff proposes to award a contract to Air Quality Management Services to electrify up to thirty-four (34) agricultural pumps less than 250 hp each instead of twenty-nine (29) 250 hp pumps, in an amount not to exceed $1,762,446. This project will generate approximately 60 tons of NOx emission reduction credits annually. The original August 2, 2002 Board approved project for 29 pumps and the same amount of $1,762,446 cannot be implemented because the equipment owners/operators cannot operate the pumps for the originally committed hourly use of approximately 5000 hours. Also, some of the pumps cannot be currently electrified.. This recommendation is a no-cost change amendment.

Funding Distribution

Pursuant to AB 1390, at least 50% of the program funds for this year must be spent in areas disproportionately impacted areas by air pollution, including areas of low income. CARB's allocation to the AQMD for this year was $7.055 million, therefore to meet the requirements of AB 1390, approximately $3.5 million, must be allocated in designated AB 1390 areas. AQMD has decided to further its support for AB 1390 by allocating at least 50% of all funding available in the Moyer program this year which includes roll-over funding from previous years and turned-back funds. With approval of this board letter, AQMD will have committed approximately $12.373 million or 67% of total funding for FY 2001-02 in areas qualified under AB 1390.

AB 1390 (Firebaugh), Point Ranking

The requirements of AB 1390 will be implemented according to the following criteria.
 

1)

All projects must qualify for the Carl Moyer program by meeting the cost effectiveness limits established in the RFP.

2)

All projects were evaluated according to the following criteria to qualify for funding under AB 1390: a) Poverty Level: All projects in areas where at least 10% of the population     falls below the Federal poverty level based on the year 2000 census     data, are eligible to be included in this category, and b) PM Exposure: All projects in areas with the highest 15% of PM      concentration will be eligible to be ranked in this category. The highest      15% of PM concentration is 46 micrograms per cubic meter and above,      on an annual average, or c) Air Toxics Exposure: All projects in areas with a cancer risk of 1,000 in      a million and above (based on Mates II estimates) will be eligible to be      ranked in this category.

Special circumstances existed in some areas, such as the Ports of Long Beach and Los Angeles. Since there are no residents within the ports, poverty ranking could not be established. In this case, the poverty ranking from the adjacent on-shore areas were extended to the port since these populated areas are directly impacted by port activities.

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

Additionally, potential bidders were notified utilizing 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" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

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 NOx reductions from the proposed project are approximately 263 tons per year. The vehicles and equipment proposed will operate many years, providing long-term emissions reductions.

The replacement of diesel-fueled refuse haulers with CNG-fueled refuse haulers, the re-powering of older marine diesel engines with low-emission new diesel engines, and the electrification of diesel-fueled agricultural pumps can reduce significant amounts of NOx emissions at an extremely competitive price. The expected 121 tons of annual NOx emissions will be real and surplus and offset excess emissions due to operations under the Rule 118 Executive Order.

Resource Impacts

Total cost for the proposed projects is $8,995,348. 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 for use 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 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. This year 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 Board last year. These funds meet the local match criteria for the Moyer Program.

The total sum of $2,225,089 for the purchase of 37 new CNG-fueled Class 7/8 refuse haulers and re-powering of 8 marine vessels will be funded from the RECLAIM EO Emissions Mitigation fund. These projects are expected to generate approximately 121 tons of NOx emission credits annually.

Attachment 1:
Local Match Requirement

ATTACHMENT 1

LOCAL MATCH REQUIREMENT
FUNDED PROJECTS
As of October 24, 2001
 

Required Match Amount
2000-01 Moyer Program:	$ 5.3 million
2001-02 Moyer Program:	$ 3.5 million (estimated)
Qualified Projects	Amount	Approval Date
Construction Management AQMD Headquarters NG Fueling Station	$ 26,415	February 16, 2001
Jurupa School District 34 CNG Buses, CNG Infrastructure	$ 2,550,000	May 11, 2001
Multiple NG Refueling Stations	$ 4,600,000	July 20, 2001
CNG Station Construction AQMD Headquarters	$ 656,200	September 21, 2001
Hydrogen Refueling Station Demonstration Project	$ 389,882	October 19, 2001
LNG Fueling Infrastructure	$ 165,000	October 19, 2001
CG Fueling Station Jurupa School District Reallocation and Supplemental Funds	$ 265,246	October 19, 2001
RFP for LNG Refueling Stations	$ 2,000,000	October 19, 2001
Total Expenditures	$10,652,743

/ / /