BOARD MEETING DATE: March 7, 2003
AGENDA NO. 7

Execute Contracts for Projects at the Port of Los Angeles

SYNOPSIS:

On June 4, 2002, the AQMD received a grant award from CARB to fund NOx and PM emissions reduction projects at the Port of Los Angeles (POLA), with POLA providing matching funds through a Memorandum of Agreement. The Program Announcement was released in September 2002. Staff proposes to fund marine vessel, PM trap, diesel oxidation catalyst, and alternative fuel projects worth $2,000,000.

COMMITTEE:

Technology, February 28, 2003, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman of the Board to execute the following contracts contingent upon receiving $1,000,000 in matching funds from the Port of Los Angeles. Total cost from the State Emission Mitigation Program Fund will not exceed $2,000,000.

1. A contract with Webco Sweeping to replace one pre-1988 diesel-fueled street sweeper with a new LPG sweeper in an amount not to exceed $50,000 from the State Emissions Mitigation Program Fund. This project is listed in Attachment A.
   
   
2. A contract with OceanAir Environmental to re-power 27 auxiliary marine vessel engines in an amount not to exceed $543,000 from the State Emissions Mitigation Program Fund. This project is listed in Attachment A.
   
   
3. A contract with Seaboard Marine to re-power eight main marine vessel engines and acquire four global positioning system (GPS) units in an amount not to exceed $290,202 from the State Emissions Mitigation Program Fund. This project is listed in Attachment A.
   
   
4. A contract with OceanAir Environmental to re-power four main marine vessel engines and acquire two global positioning system (GPS) units in an amount not to exceed $84,600 from the State Emissions Mitigation Program Fund. This project is listed in Attachment A.
   
   
5. A contract with Engine Control Systems to install oxidation catalysts on 200 yard tractors in conjunction with the use of emulsified diesel fuel in an amount not to exceed $344,000 from the State Emissions Mitigation Program Fund. This project is listed in Attachment A.
   
   
6. A contract with Engine Control Systems to install oxidation catalysts on 200 yard tractors in an amount not to exceed $344,000 from the State Emissions Mitigation Program Fund. This project is listed in Attachment A.
   
   
7. A contract with Engine Control Systems to install diesel particulate filters in conjunction with oxidation catalysts on forty-three yard tractors, top picks, and lift trucks in an amount not to exceed $344,198 from the State Emissions Mitigation Program Fund. This project is listed in Attachment A.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 2001, Governor Davis created a statewide NOx and PM Reduction Program to mitigate excess emissions from peaker power generation units that are needed to alleviate the power crisis in California. In response to this request, the Board at its July 20, 2001 meeting, approved the establishment of the State Emissions Mitigation Fund. Under this program, CARB allocated the use of $1,000,000 for projects at POLA to reduce NOx and PM emissions from re-powering diesel-fueled marine vessel engines, yard hostlers, yard tractors, portside equipment, and the use of alternative fuels and emission control technologies.

As required by the program, POLA matched CARB’s contribution of $1,000,000 with an additional $1,000,000 through a Memorandum of Agreement, which was executed on February 12, 2003.

In September 2002, with Board approval, AQMD released Program Announcement PA2003-06 to solicit projects at POLA. In response to the Program Announcement, AQMD received five proposals, which are listed in Attachment A. Jointly, AQMD and POLA evaluated the proposals and determined that of the marine vessel engines, only $603,000 worth of auxiliary engines and $470,902 worth of main engines qualified for this project. The proposed projects were selected on the basis of cost effectiveness, emission reduction, and project completion deadlines.

Proposal

The projects received in response to the Program Announcement are listed in Table 1. In discussions between the POLA staff and AQMD staff, it was decided that the available funds be evenly allocated between marine vessels and landside equipment to maximize the air quality benefits for the available funds. As such, the projects submitted under the solicitation are divided into individual categories and each proposal was evaluated within their respective category.

The project selection was based on cost effectiveness, emission reduction, and project completion deadlines. The selection panel consisted of the AQMD’s Manager of Technology Implementation, AQMD’s Program Supervisor in the Technology Implementation group, and POLA’s Marine Environmental Supervisor. The panel recommended that the projects provided in Tables 2, 3, and 4 be awarded. Staff proposes to re-power diesel-fueled main and auxiliary marine vessel engines with new, low-emission diesel engines in amounts not to exceed $543,000 and $374,802, respectively. Re-powering of diesel-fueled marine vessel engines is a very cost effective approach towards reducing significant quantities of NOx, PM, hydrocarbon, toxic, and greenhouse gas emissions. Annually, the re-powering of these engines will produce approximately 58 tons of NOx and 2 tons of PM reductions. The proposed marine vessel projects are the most cost effective of all projects that were received.

Two street sweepers were submitted. Replacement of street sweepers is covered by Rule 1186.1. One street sweeper that serves the City of Los Angeles does not qualify because it is required to be replaced with clean fuel technology by Rule 1186.1. The other sweeper that serves a private company is not affected by Rule 1186.1 and can be funded under this incentive program. One of the street sweepers is not being proposed for funding because it does not qualify under this program. The other projects from Table 1 are not being considered for funding because they don’t meet the selection criteria, which is based on cost effectiveness, emission reduction, and project completion deadlines.

Staff also proposes to install diesel oxidation catalysts and particulate matter traps on various off-road portside equipment, and use of emulsified diesel fuel in conjunction with oxidation catalysts. Recently, CARB has verified the use of one type of oxidation catalyst in conjunction with emulsified diesel fuel for use on off-road portside equipment.

Contracts will be expeditiously executed for each selected project so that the emission reductions can occur as soon as possible.

Benefits to AQMD

The successful implementation of this program will result in mitigation of excess NO_x and PM emissions produced by peaking power plants, which must operate to accommodate peak electrical loads. 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 staff has acquired experience and expertise in identifying emission sources and available control or prevention technologies.

Resource Impacts

The total cost of the proposed projects listed in Attachment A shall not exceed $2,000,000 from the State Emissions Mitigation Program Fund. Sufficient funds are expected from POLA to be placed in the State Emissions Mitigation Program Fund.

Attachment

Attachment A - List of POLA Projects

Attachment A

Table 1
Proposals Received
 

List of Projects Recommended for Award

Table 2
 

Table 3
 

Table 4
 

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