BOARD MEETING DATE: February 6, 2004
AGENDA NO. 3
Execute Additional Contracts to Generate Emissions Credits Under the State Emissions Mitigation Program
SYNOPSIS:
At the July 20, 2001 meeting, the Board established the State Emissions Mitigation Fund to recognize up to $30,000,000 in State funds from CARB. The AQMD received a total of $28,922,925 under this program. Some of the funds have not been used due to uncommitted projects and projects that can’t meet the required deadlines. An amount of $1,223,589 is left over. With CARB’s recommendation, staff proposes the approval of new projects in an amount not to exceed $1,211,691.
COMMITTEE:
Technology, January 23, 2004. Less than a quorum was present during this discussion. Both the Chair and Vice Chair communicated their concurrence and recommendation that this item be forwarded for Board consideration.
RECOMMENDED ACTION:
A. Authorize the Chairman to execute the following contracts from the State Emissions Mitigation Fund:
1. A contract with Sukut Equipment, Inc. to repower six wheel scrapers and one wheel dozer in an amount not to exceed $710,779.
2. A contract with Mclaughlin Engineering and Mining, Inc. to repower two dual engine and two single engine scrapers in an amount not to exceed $387,312.
3. A contract with Seaboard Marine to replace five auxiliary engines on two tugboats and a harbor service barge in an amount not to exceed $113,600.
B. Authorize the Chairman to execute contracts for other projects based on their cost-effectiveness as listed in Attachment A should the above proposed projects not meet the June 30, 2004 completion deadline.
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. The AQMD received a total of $28,922,925 under this program in Calendar Years 2001 and 2002. Some of the funds have not been used due to uncommitted projects and projects that can’t meet the required deadlines. An amount of $1,223,589 is leftover. At its November 7, 2003 meeting, the Board approved the release of Program Announcement PA 2004-04, to solicit projects for the leftover funding under the State Emissions Mitigation Program.
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. |
Angeles Mesa Wave, The |
11. |
Inland Valley Daily Bulletin |
21. |
Palm Springs Desert Sun |
|
2. |
Antelope Valley Press |
12. |
Korea Central Daily |
22. |
Philippine News |
|
3. |
Black Voice News |
13. |
La Opinion |
23. |
Precinct Reporter |
|
4. |
Central News Wave |
14 |
La Prensa |
24. |
Rafu Shimpo |
|
5. |
Chinese Daily News |
15. |
La Voz |
25. |
Press Enterprise |
|
6. |
Eastern Group Publications |
16. |
Los Angeles Daily News |
26. |
San Bernardino Sun |
|
7. |
El Chicano |
17. |
Los Angeles Sentinel |
27. |
Santa Clarita Signal |
|
8 |
El Informador |
18. |
Los Angeles Times |
28. |
The Wave |
|
9. |
Excelsior, The |
19. |
M/W/DVBE Source |
29. |
State of California Contracts |
|
10. |
Inland Empire Hispanic News |
20. |
Orange County Register |
Register |
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.
Bid Evaluation
The AQMD received thirty-five proposals totaling $22,768,939. The proposals were ranked based on five year NOx cost effectiveness, with the requirement of project completion deadline of June 30, 2004. The proposal evaluation results are summarized in Attachment A.
Proposal
Staff recommends awarding the following top three proposals based on their five year cost effectiveness:
- Sukut Equipment will repower six wheel scrapers and a wheel dozer for
$710,779.
- Mclaughlin Engineering and Mining will repower two dual engine and two
single engine scrapers for $387,312.
- Seaboard Marine will repower five auxiliary engines comprised of two engines on two tugboats and three engines on one barge for $113,600. This project was partially funded due to limited availability of funds.
The proposal list was sent to CARB staff, and all the above proposals are recommended with CARB’s staff consent. Contracts will be executed for each selected project expeditiously so that the emission reductions can occur as soon as possible. All projects will be completed by June 30, 2004. If any of the proposed projects get delayed and are unable to be completed by June 30, 2004, staff recommends replacing them with other projects listed in Attachment A. The selection will start with the most cost effective project and continue in descending order.
Benefits to AQMD
The successful implementation of this program will result in mitigation of excess NOx 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 has acquired experience and expertise in identifying emission sources and available control or prevention technologies.
Resource Impacts
Total cost of the proposed projects shall not exceed $1,211,691 from the State Emissions Mitigation Fund.
Attachment
Attachment A - List of Proposal Received
Attachment A
Proposals Received
|
Applicant |
Project |
Funding |
NOx |
PM |
NOx CE |
|
|
1 |
Sukut Equipment Inc | Repower 3 Caterpillar 651B, 3 Caterpillar 657 E wheel scrapers; and 1 Caterpillar 824C wheel dozer |
$710,779 |
51.6 |
2.80 |
$3,005 |
|
2 |
Mclaughlin Engineering And Mining, Inc | Repower 2 dual engine and 2 single engine scrapers (6 engines) |
$387,312 |
27.7 |
1.04 |
$3,053 |
|
3 |
Seaboard Marine | Replace 43 Auxiliary engines |
$954,800 |
68.1 |
3.95 |
$3,056 |
|
4 |
Reliable Wholesale Lumber Inc | Repower diesel engines from 15 self-propelled lumber loaders |
$379,425 |
26.1 |
1.50 |
$3,169 |
|
5 |
OceanAir Environmental | Repower of Barge Chelsea J Pumping Engine |
$73,500 |
5.0 |
0.08 |
$3,230 |
|
6 |
Peed Equipment | Repower 4 dual engine Caterpillar 657 E wheel scrapers |
$665,724 |
44.2 |
2.24 |
$3,283 |
|
7 |
Herigstad Equipment Rental | Repower 3 dual engine scrapers (6 engines) |
$374,460 |
24.3 |
0.93 |
$3,355 |
|
8 |
Tidewater Marine Western Inc | Repower 3 main and 2 Auxiliary engines (5 years) |
$401,932 |
23.9 |
0.33 |
$3,662 |
|
9 |
OceanAir Environmental | Clean air Upgrade of Tug Boat Brynn Foss (remanufacture) |
$410,000 |
23.0 |
0.71 |
$3,886 |
|
10 |
Mesa Contracting Corp | Repower 6 Caterpillar 651B; and 1 Caterpillar 834B wheel dozer |
$683,356 |
37.6 |
1.57 |
$3,962 |
|
11 |
OceanAir Environmental | Clean Air Upgrade of Tug Boat Pacific Combi |
$540,000 |
29.6 |
0.87 |
$3,977 |
|
12 |
Clean Energy (Airport use) | Deploy 25 dedicated CNG E-450 Shuttle Buses in place of Diesel |
$375,000 |
20.2 |
8.30 |
$4,047 |
|
13 |
Addison Equipment Rental | Repower 2 Caterpillar 140G Motor Graders |
$40,600 |
2.0 |
0.14 |
$4,339 |
|
14 |
Herigstad Equipment | Repower 21 Terex TS-24B Scrapers (Front & Rear) |
$2,484,216 |
122.5 |
5.70 |
$4,423 |
|
15 |
Altfillisch Contractors, Inc | Repower 4 Caterpillar D7G track dozers and (1) Caterpillar 631D Waterpull |
$186,232 |
9.0 |
0.49 |
$4,501 |
|
16 |
Athens Services | Replace 2 pre-1987 diesel street sweepers with CNG sweepers |
$80,000 |
3.7 |
0.22 |
$4,663 |
|
17 |
Road Builder's Inc | Repower up to 18 very HD off road construction equipment |
$1,587,348 |
64.2 |
3.23 |
$5,390 |
|
18 |
OceanAir Environmental | Clean Air Upgrade of Tug Boat Defiant |
$540,000 |
20.8 |
0.46 |
$5,660 |
|
19 |
Nationwide Environmental Services | Replace (6) 1987 diesel street sweepers with CNG sweepers |
$360,000 |
13.5 |
0.77 |
$5,835 |
|
20 |
OceanAir Environmental | Repower of Tug Boat Solana |
$294,000 |
10.5 |
0.68 |
$6,104 |
|
21 |
Mellon Grading Inc | Repower 6 pieces of earth moving equipment (6 engines) |
$414,750 |
14.6 |
0.80 |
$6,189 |
|
22 |
Seaboard Marine | Replace 15 Main engines ** |
$1,143,500 |
33.5 |
1.65 |
$7,448 |
|
23 |
Gateway Cities Council Of Governments | Fleet Modernization (up to $2 million) |
$2,000,000 |
55.0 |
4.60 |
$7,927 |
|
24 |
R.J. Noble Company | Repower 5 Caterpillar 12G Motor Graders |
$139,805 |
3.6 |
0.20 |
$8,466 |
|
25 |
Burbank Glendale Pasadena Airport Authority | Retrofit 7 passenger buses with the Cleaire Longview NOx and PM emission reduction device |
$129,500 |
2.9 |
0.42 |
$9,871 |
|
26 |
Long Beach Transit | Retrofit 30 Transit buses with 'Cleaire Longview' NOx plus PM reduction systems |
$555,000 |
7.8 |
0.78 |
$15,512 |
|
27 |
Gateway Cities Council Of Governments | Install Cleaire Longview systems on heavy-duty trucks (up to $2 million) |
$2,000,000 |
25.0 |
1.60 |
$17,440 |
|
28 |
Southern California Edison | Retrofit 11 HD Diesel trucks with Cleaire Products |
$203,500 |
1.3 |
0.10 |
$34,125 |
|
29 |
Venco Western Inc | Replace 3 pre-1987 diesel street sweepers with CNG sweepers |
$150,000 |
0.6 |
0.33 |
$52,827 |
|
30 |
Clean Energy (Xpress & Super Shuttle) | Deploy 100 CNG Airport Shuttle Vans |
$1,000,000 |
4.1 |
N/A |
$53,563 |
|
31 |
Clean Energy (Time Warner) | Deploy 50 CNG Cable Television Cargo Vans |
$250,000 |
0.8 |
N/A |
$68,125 |
|
32 |
City Of Los Angeles Transportation Dept | Retrofit 38 LADOT motor coaches with 'Cleaire Longview' NOx plus PM reduction systems |
$703,000 |
2.1 |
0.32 |
$73,327 |
|
33 |
O2diesel Inc | Supply 1,908,000 gallons of oxygenated diesel fuel for 40 scrapers in 12 months |
$292,200 |
3.8 |
1.81 |
$16,852 |
|
34 |
La County Metropolitan Transportation Authority | Retrofit 14 heavy duty tow trucks with 'Cleaire Longview' NOx plus PM reduction systems |
$259,000 |
0.5 |
0.03 |
$109,000 |
|
35 |
Gateway Cities Council Of Governments | Install Donaldson Diesel Oxidation Catalysts on (up to $2 million) |
$2,000,000 |
N/A |
3.80 |
$114,737 |
|
|
Total |
|
$22,768,939 |
|
|
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