BOARD MEETING DATE: October 1, 2004 AGENDA NO. 5

The second Multiple Air Toxics Exposure Study (MATES-II), released in 2000, shows that approximately 70 percent of the cancer risk from air toxics in the South Coast Air Basin is due to diesel particulate matter. In June 2003, recognizing that children are more susceptible to diesel PM than healthy adults, the Board directed staff to develop a rule to provide health protection to school children and schools located near polluting diesel engines.

At its April 2, 2004 meeting, the Board adopted Rule 1470 that controlled toxic emissions from diesel engines. Rule 1470 included the requirements of CARB Air Toxics Control Measure (ATCM) for diesel engines, and added more stringent requirements for engines located on or within 500 feet from existing schools. In particular, Rule 1470 is intended to protect school children from diesel PM emissions from emergency standby engines under known situations, such as engine maintenance and testing, as well as emergency situations. Operators of diesel backup generators can use three main routes to comply with requirements of Rule 1470; these include the use of clean fuels, restricting the hours for testing and maintenance to non-school hours, and/or installing diesel particulate matter filters.

At its April 2, 2004 meeting, the Board also adopted a resolution directing staff to offer financial assistance for diesel backup generators owned by a school or school district and located on or near school grounds that would incur additional control costs due to Rule 1470 than what was required under the CARB ATCM.

At its July 12, 2002 meeting, the Board approved the issuance of a program announcement to award funds to schools and school districts to install PM traps on their diesel backup generators in an amount not to exceed $250,000. This fund was from the State Backup Generator (BUG) Program Fund, which was placed in the Lower-Emission School Bus Fund. Due to the small number of applications from school districts at the time, the Board re-issued the funding opportunity, and later extended the deadline for applications to June 30, 2004.

By June 30, 2004, eleven schools and one private school applied to retrofit 30 stationary diesel back up generators with PM traps, as listed in Table 1. Total funding requested exceeded the allocated $250,000.

School	Diesel Backup Generators	Max. AQMD Award per Unit*	Total Award	Comment
Archer School	1 at 50 kw	$12,500	$12,500
El Monte	1 at 276 kw	$20,000	$20,000
Hemet	2 at 60 kw	$12,500	$25,000
Irvine	1 at 125 kw	$12,500	$12,500
Las Virgenes	1 at 25 kw 1 at 60 kw	$12,500 $12,500	$25,000
Long Beach	2 at 15 kw 1 at 30 kw 1 at 38 kw 1 at 45 kw 1 at 60 kw 1 at 60 kw 1 at 75 kw 1 at 80 kw 1 at 100 kw 1 at 130 kw 1 at 150 kw 1 at 175 kw	Not recommended $12,500 $12,500 $12,500 $12,500 Not recommended $12,500 $12,500 $12,500 $20,000 $20,000 $20,000	$147,500	Small engines. In maint. yard bordered with school. In transp. building within 500 ft. Far from school premises. In transp. building within 500 ft.
Menifee	2 at 30 kw 1 at 40 kw	$12,500 $12,500	$37,500
Newhall	2 at 50 kw 1 at 55 kw	$12,500 $12,500	$37,500
Norwalk-LaMirada	1 at 171 kw	$20,000	$20,000
Saddleback	1 at 50 kw	$20,000	$20,000
Santa Ana	1 at 64 kw 1 at 86 kw	$12,500 $12,500	$25,000
Total	30	27	$382,500

* The award amount is up to $12,500 per unit for retrofit of diesel backup generators with a rating of up to 125 kw and $20,000 per unit for generators with a rating of greater than 125kw.

Staff recommends funding all eleven schools to retrofit 27 diesel backup generators, as set forth in Table 1, in an amount not to exceed $382,500 comprised of $250,000 from the Lower-Emission School Bus Fund originally transferred from the State Backup Generator Fund, and $132,500 from the Rule 1309.1 Priority Reserve Fund. Funding amount per PM trap retrofit shall not exceed $12,500 for generators with a rating of up to 125kw, and $20,000 for generators with a rating of greater than 125kw. The funding amount per trap is expected to cover the PM trap purchase cost including data logging (if necessary), installation, accessories such as backpressure monitor, sales tax, and other associated miscellaneous costs. Vendors will be required to install CARB verified PM traps, and invoice AQMD directly. Any unused funds will revert back to the Lower Emission Bus Fund.

Staff also recommends issuing a new program announcement #PA 2005-05 in an amount not to exceed $250,000 from the Rule 1309.1 Priority Reserve Fund so that additional schools can receive funds to retrofit their diesel backup generators. Unlike earlier program announcements, this program announcement will not have an application due date. Instead, it will be available to schools and school districts on an ongoing basis. Applying schools would be ranked in the order of applications received, and will be funded on a first-come first-served basis, until the funding is exhausted.

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids will be 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 will be 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 will be 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 where it can be viewed by making menu selections "Inside AQMD"/"Employment and Business Opportunities"/"Business Opportunities" or by going directly to http://www.aqmd.gov/rfp/index.html).

Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in Southern California to achieve air quality standards. Schools routinely test, maintain and operate diesel backup generator sets in close proximity to students, teachers and neighbors. Many generator sets are located in heavily populated areas. The successful implementation of the diesel backup generator retrofit program will reduce the exposure of school children and the general public to toxic PM emissions.

The total amount of funding for retrofitting diesel back up generators with PM traps shall not exceed $382,500 comprised of $250,000 from the Lower Emission School Bus Fund originally transferred from the State Backup Generator Fund, and $132,500 from the Rule 1309.1 Priority Reserve Fund. A new program announcement PA #2005-05 is requested to be issued for $250,000, to retrofit additional school diesel backup generators with PM traps from the Rule 1309.1 Priority Reserve Fund.