BOARD MEETING DATE: September 5, 2003
AGENDA NO. 4

Execute Contract for Carl Moyer Program Inter-District Marine Vessel Project and Amend Contract to Substitute Marine Vessel Project

SYNOPSIS:

In June 2003, CARB awarded $182,000 for a marine vessel engine repowering project with OceanAir Environmental under the Carl Moyer Program Inter-District Project. Staff proposes to execute a contract with OceanAir for the specified marine vessel project that operates in the AQMD and San Diego APCD waters. In August 2002, the Board approved an engine repowering project with Seaboard Marine for marine vessel Cee Ray. In June 2003, Seaboard informed AQMD that the project should be for marine vessel Sea Ray and not Cee Ray. Seaboard states that this error occurred inadvertently due to a typographical error in their application. Staff proposes to amend the existing contract with Seaboard to include Sea Ray and delete Cee Ray.

COMMITTEE:

Technology, July 25, 2003, Recommended for Approval

RECOMMENDED ACTION:

1. Recognize revenue from CARB in the amount of $182,000 to be appropriated for the Carl Moyer Program Fund.
    
2. Authorize the Chairman to execute a contract with OceanAir Environmental for repowering engines on Pacific Star for an amount not to exceed $182,000 under the Carl Moyer Program Inter-District Project and install a GPS unit in an amount not to exceed $2,300 from the Carl Moyer Program Fund.
    
3. Authorize the Chairman to amend contract with Seaboard Marine to substitute marine vessel Cee Ray with Sea Ray under the RECLAIM Executive Order Emissions Mitigation Program with no change in the amount of funding and emission reduction as approved by the Board on August 2, 2002.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Carl Moyer Program Inter-District Project was created by CARB in December 2001. The project categories are limited to marine vessels, locomotives, and on-road vehicles that operate in more than one air district. The projects must operate at least 30% of the time or miles outside their primary district of operation within California. CARB has set aside a maximum of $510,750 for these projects. In June 2003, CARB awarded a grant for $201,774 of which $182,000 is for a marine vessel engine repowering project with OceanAir Environmental. The vessel, Pacific Star, operates approximately 50% of the total operating time in AQMD waters and the other 50% in San Diego County APCD (SDAPCD) waters. The remaining $19,774 has been earmarked by CARB for a Wal-Mart project under the Carl Moyer program.

In August 2002, Board approved an engine repowering project with Seaboard Marine for marine vessel Cee Ray. In March 2003, a contract was executed with Seaboard for this project for a total funding of $107,300, which includes $2,300 for a GPS unit. On June 24, 2003, Seaboard informed AQMD that the project should be for marine vessel Sea Ray and not Cee Ray. Seaboard states that this error occurred inadvertently due to a typographical error in their application.

Proposal

Staff proposes to execute a contract with OceanAir Environmental for an amount not to exceed $184,300 for repowering two main engines on marine vessel Pacific Star. The total funding amount of $184,300, which includes $2,300 for a GPS unit will be provided from the Carl Moyer Program Fund. This vessel operates approximately 50% of the total operating time in AQMD waters and the other 50% in SDAPCD waters. The funding amount and the expected NOx emission reduction are listed in Table 1.

Table 1
 

*Includes NOx reduction in AQMD and SDAPCD waters.

Staff proposes to amend an existing contract with Seaboard Marine to substitute marine vessel Cee Ray with Sea Ray. The previously Board-approved total funding amount of $107,300 and estimated annual NOx reduction of 3.5 tons will remain unchanged.

Benefits to AQMD

The successful implementation of the Pacific Star project will result in estimated annual NOx reduction of 3.8 tons in AQMD waters and an additional 3.8 tons in SDAPCD waters. This project will also produce concurrent toxic compounds emissions reductions, 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.

The Sea Ray project will produce real and surplus annual NOx emission reduction of approximately 3.5 tons, which will be credited to the RECLAIM Executive Order Emissions Mitigation Program. This project is cost effective, and can be completed within four to six weeks, and will provide AQMD with much needed NO_x emission credits.

Resource Impacts

The total funding amount of $184,300 for the Pacific Star project will be provided from the Carl Moyer Program Fund. The substitution of the Cee Ray project with Sea Ray will not change the previously Board-approved amount of $107,300 under the RECLAIM Executive Order Emissions Mitigation Program.

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