BOARD MEETING DATE: November 5, 2004
AGENDA NO. 7

Execute Contracts for PM10 and/or NOx Reduction Projects in Disproportionately Impacted Areas

SYNOPSIS:

Under a settlement agreement with Communities for a Better Environment and Our Children’s Earth, the AQMD agreed to allocate $1 million from Rule 1309.1 mitigation fees for emission reduction projects in disproportionately impacted areas, and to establish a special fund for such projects. A program announcement to solicit projects was released on June 4, 2004. This action is to fund various PM10 and NOx emission reduction projects under this program.

COMMITTEE:

Technology, October 22, 2004, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute the following contracts with funds from the CBE/Our Children’s Earth Settlement Agreement Fund:

1. A contract with Reliable Wholesale Lumber. Inc. to repower eight lumber loaders with new, Tier 2 emission-certified engines in an amount not to exceed $202,360.
    
2. A contract with Seaboard Marine to replace an auxiliary engine in the marine vessel "Caroline" with a new, emission-certified engine in an amount not to exceed $18,900.
    
3. A contract with Seaboard Marine to replace an auxiliary engine in the marine vessel "City of Redondo" with a new, emission-certified engine in an amount not to exceed $16,900.
    
4. A contract with Seaboard Marine to replace an auxiliary engine in the marine vessel "Redondo Special" with a new, emission-certified engine in an amount not to exceed $16,900.
    
5. A contract with Seaboard Marine to replace two auxiliary engines in the marine vessel "South Bay Barge #1" with new, emission-certified engines in an amount not to exceed $137,120.
    
6. A contract with Seaboard Marine to replace two auxiliary engines in the marine vessel "Bottom Scratcher" with new, emission-certified engines in an amount not to exceed $33,500.
    
7. A contract with the City of San Fernando to purchase two new CNG trolleys in an amount not to exceed $74,000.
    
8. A contract with the Enterprise Foundation to install solar energy systems on housing units in low-income neighborhoods of Los Angeles in an amount not to exceed $500,320.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In March 2004, the Board approved a settlement in Communities for a Better Environment and Our Children’s Earth Foundation v. SCAQMD, U.S. District Court Case No. 03-06985 WMB (CTx). As part of this settlement, AQMD agreed to create a special fund of $1 million from the Rule 1309.1 Priority Reserve Fund to be used for projects that reduce PM10 and/or NOx emissions in disproportionately impacted areas. At the June 4, 2004 meeting, the Board established the CBE/Our Children’s Earth Settlement Agreement Fund in the amount of $1 million, and released a Program Announcement PA #2004-08 soliciting PM10 and/or NOx emission reduction projects in disproportionately impacted areas.

Qualifying projects were required to produce PM10 and/or NOx emission reductions in a disproportionately impacted area. Pursuant to the AQMD process for implementing Assembly Bill 1390 (Firebaugh), a disproportionately impacted area is defined as:
 

a)	Poverty Level: An area where at least 10% of the population falls below the Federal poverty level based on the year 2000 census data, and
b)	PM Exposure: An area where the highest 15% of PM concentration exists. The highest 15% of PM concentration is 46 micrograms per cubic meter and above, on an annual average, or
c)	Air Toxics Exposure: An area where the cancer risk is 1,000 in a million and above (based on MATES II estimates).

Special circumstances exist 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 AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was published in the following publications:
 

1.	Antelope Valley Press	11.	La Opinion	21.	Rafu Shimpo
2.	Black Voice News	12.	La Prensa Hispana	22.	San Bernardino Sun
3.	Chinese Daily News	13.	La Voz Publications	23.	State of California Contracts
4.	Desert Sun	14.	Los Angeles Daily News		Register
5.	Eastern Group Publications	15.	Los Angeles Sentinel	24.	The Daily Breeze
6.	El Chicano	16.	Los Angeles Times	25.	The Excelsior
7.	El Informador	17.	Orange County Register	26.	The Signal
8.	Inland Empire Hispanic News	18.	Philippine News	27.	Wave Community Newspapers
9.	Inland Valley Daily Bulletin	19.	Precinct Reporter
10.	Korea Central Daily	20	Press Enterprise

Additionally, potential bidders were notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ 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). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724. Potential vendors were also notified including various consultants from Technology Advancement's database.

Selection Process

As stated in the program announcement, $1 million was available for projects that reduced PM10 and/or NOx emissions in disproportionately impacted areas. A total of 27 proposals were received under PA #2004-08 (see Attachment A). The types of projects submitted include: natural gas vehicles, truck stop electrification, outreach and technical assistance, marine vessel repowering projects, construction equipment repowering projects, solar energy systems for residential housing units, diesel particulate trap and oxidation catalyst retrofits, and electric infrastructure for refrigeration units and containers/trailers.

All proposals submitted were evaluated and scored according to the following selection criteria as described in the program announcement:

• Cost effectiveness for PM10 and NOx emission reductions (40 points total, with 15 points for PM10 and 25 points for NOx)
• Providing innovative solutions for community needs (40 points)
  • Innovative Technology
  • Use of clean fuel
  • Address community needs
• Project strength and implementation schedule (20 points)

Projects receiving an overall score of less than 50 points were not considered, as stated in the program announcement. The proposals were evaluated by a panel comprised of four members; two female and two male; two Caucasian, one Hispanic, one Asian. The panel members included representatives from Communities for a Better Environment, Our Children’s Earth Foundation, CARB and AQMD.

One proposal to conduct outreach and education efforts, identify and evaluate fleets, provide technical assistance to fleet operators, participate in a community workshop and environmental justice meetings, and provide reports to the AQMD, was determined ineligible for funding since it did not meet the minimum qualification criteria. The Program Announcement states that the funds under this program are available "for projects that reduce PM10 and/or NOx emissions in disproportionately impacted areas." The panel agreed the funds requested by this proposal would not result in direct PM10 and/or NOx emission reductions and, therefore, did not qualify for funding under this program.

Another proposal to implement a truck stop electrification project could not be recommended for funding due to specific language in the Settlement Agreement [Communities for a Better Environment and Our Children’s Earth Foundation v. SCAQMD, U.S. District Court Case No. 03-06985 WMB (CTx)] stating that projects funded under this program must achieve NOx emission reductions above and beyond those specified in AQMD’s Air Quality Management Plan (AQMP). The 2003 AQMP includes a mobile source control measure (MSC-05) for truck stop electrification scheduled for implementation beginning in 2007, with full implementation by 2010. Due to this limitation, the proposal could not be funded under this program.

Proposal

Based on the results of the panel evaluation, twenty-five individual projects received an overall score of 50 points or higher. It is important to note that in some cases, a single proposal may include multiple separate and individual projects. The overall score for each project is the sum of the average number of points received under each evaluation criterion. The number of points received under each evaluation criterion is an average of the four scores given by the evaluators.

For those projects that received an overall score of 50 points or higher, the panel decided based on the provisions of the Program Announcement to prioritize based on the percentage of time the project would be operated in the disproportionately impacted areas. The highest priority was assigned to those projects that would be operated in a disproportionately impacted area for 100% of the time. Since the requested funds for these high-priority projects exceeds the available program funds, the projects were selected for funding based on their overall score. The following projects are recommended for funding:
 

Table 1
Recommended Project Awards
 

Since the funds requested by the above projects totals more than the available program funds, the proposal submitted by The Enterprise Foundation is recommended for partial funding. This partial funding in addition to $500,000 cost-sharing offered in the proposal shall be used to install solar energy systems on 60 housing units.

Benefits to AQMD

The successful implementation of this program will result in reducing PM10 and NOx emissions in disproportionately impacted areas. The program will also produce concurrent toxic air contaminant emission reductions, which is an additional benefit.

Resource Impacts

The total cost of this program shall not exceed $1,000,000. Sufficient funds are available in the CBE/Our Children’s Earth Settlement Agreement Fund.

Attachment A

Proposals Received in Response to PA2004-08
 

Attachment A: Proposals Received in Response to PA2004-08   
 

* This proposal submitted by IdleAire Technologies could not be recommended for funding due to language in the Settlement Agreement stating that projects funded under this program must achieve NOx emission reductions above and beyond those specified in AQMD’s AQMP. The 2003 AQMP includes a mobile source control measure (MSC-05) for truck stop electrification.
** This proposal submitted by Gladstein, Neandross & Associates was determined ineligible for funding under this program since it is not a direct emission reduction project.
*** The following marine vessel projects were withdrawn by the applicant: Eileen, Lil Jack, Pacific Leader, San Pedro Pride, St. Andrews.

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