BOARD MEETING DATE: December 2, 2005
AGENDA NO. 6

Execute Contracts for FY 2004-05 Carl Moyer Memorial Air Quality Standards Attainment Program

SYNOPSIS:

On September 30, 2005, proposals were received in response to a RFP for the Carl Moyer Air Quality Standards Attainment Program. This action is to execute Carl Moyer contracts for agricultural engines, forklifts, and marine vessels projects. Proposals submitted for the remaining equipment categories are currently under evaluation and contracts for those categories will be proposed in the near future.

COMMITTEE:

Technology, November 18, 2005, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute the following contracts for the FY 2004-05 Carl Moyer Program:

1. A contract with Classic Distributing and Beverage Group, to purchase nine new electric forklifts in an amount not to exceed $97,164 from the Carl Moyer Program SB1107 Fund.
2. A contract with Peterman Lumber Inc., to purchase two new electric forklifts in an amount not to exceed $32,984 from the Carl Moyer Program SB1107 Fund.
3. A contract with the Los Angeles County Sheriff’s Department, to repower a marine vessel in an amount not to exceed $139,087 from the Carl Moyer Program SB1107 Fund.
4. A contract with Scott Brothers Dairy Farm, to repower two agricultural pump engines in an amount not to exceed $119,442 from the Carl Moyer Program AB 923 Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Carl Moyer Memorial Air Quality Standards Attainment Program (CMP) provides funds on an incentive basis for the incremental cost of purchasing cleaner than required engines and equipment. Eligible projects include cleaner on- and off-road, marine, loco-motive, and agricultural engines, as well as forklifts, airport ground support equipment, and auxiliary power units.

This is the seventh year of the CMP, but this is the first year of the program with a long-term source of funding generated under SB 1107 and AB 923. CARB has allocated $12,181,983 to the AQMD under SB 1107 for implementation of the FY 2004-05 CMP. Of this amount, $11,906,373 is designated for projects funding and $275,610 is for administrative and outreach efforts as allowed under SB 1107. In addition, approximately $6.7 million is added to the CMP funding from funds collected under AB 923, making the total available funding approximately $18.6 million. The $6.7 million in AB 923 funds consists of $5,421,846 as the AQMD’s required local match funding for the program, and $1.3 million specifically designated for agricultural engines.

Proposal

At its July 8, 2005 meeting, the Board approved release of RFP #P2006-01 to solicit pro-posals for the year seven of the Carl Moyer Program. The RFP made $18.6 million available with a proposed allocation amount of funding for different project categories as shown in Table 1.

By the closing date of September 30, 2005, a total of 72 proposals were submitted re-questing approximately $52 million in funding. Prior to this year, only projects reducing NOx emissions qualified for funding. However, based on the newly developed guidelines by CARB, projects reducing NOx, PM, and ROG now qualify for funding with the cost-effectiveness calculations including all three pollutants.

Requests for agricultural engines, forklifts, and marine vessels were undersubscribed, whereas requests for the remaining categories were significantly oversubscribed. This action is to approve recommended projects within the categories of agricultural engines, marine vessels and forklifts as outlined in Table 2.

Table 1
Proposed Funding and Cost-Effectiveness Limits

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*The above indicated amounts are the minimum amounts but not necessarily the maximum amounts of funding available to be awarded to each vehicle/equipment category in case of oversubscription in its category.

**Small fleets (20 or fewer vehicles, with GVW 14,001 lbs. and above), and public sector, APUs.

Table 2
Proposed Awards

Evaluations of the remaining equipment categories are underway and recommendations for projects approvals will be brought to the Board at its February 2006 meeting. Remaining funds that had been set aside for forklifts and marine vessels as outlined in Table 1, will be distributed among other equipment categories that have been oversubscribed. However, in the next round of solicitation, anticipated to be issued in February 2006, the unused funds of approximately $3.9 million for agricultural sources will again be made available for agricultural engine projects. If these funds are not fully exhausted after this round of solicitation, any remaining funds under this agricultural source category will be made available to the Lower Emission School Bus Program as previously directed by the Board at its February 2005 meeting.

During the solicitation period for RFP #2006-01, AQMD staff conducted eight workshops, including two for agricultural engines with the cooperation of the Farm Bureau. The workshops were well attended and the reason for under subscription of agricultural engines is believed to be the long lead time still remaining prior to rule compliance. It is anticipated that in the next round of funding there will be more applications for agricultural engine projects. CARB’s new guidelines for agricultural engines have been applied for the evaluation of the single application that was submitted for agricultural engines.

The cost-effectiveness calculations of the Carl Moyer Program projects are based on equipment life. At the time of contract execution, staff proposes to shorten the contract life of certain projects to five years as long as the cost-effectiveness remains below the allowable limit. This will make the management of cost-effective projects with very long equipment life more manageable.

Funding Distribution

As in the past, at least 50% of the program funds will be spent on projects located in dis-proportionately impacted areas. This year, funding allocated under SB1107 and AB923 is approximately $18.6 million. As such, at least $9.3 million will be awarded to projects in disproportionately impacted areas. As the total recommended funding amount of $365,687 in this Board letter is relatively small compared to the total amount of available funding, the total percentage of funding allocated for projects in disproportionately impacted areas will be accounted when the remaining balance of funds will be recommended for awards.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertis-ing the RFP/RFQ and inviting bids was published in the following publications:

Additionally, potential bidders were notified utilizing the Los Angeles County MTA Di-rectory 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.

Benefits to AQMD

AQMD’s Clean Fuels Program has been active in funding the development and demon-stration of low emission, alternative fuel technologies within its Technology Advance-ment Office. The AQMD has also supported a number of activities directed to commer-cialization of low-emission alternative fuel technologies. The successful implementation of the Carl Moyer Program is a direct result of these technology advancement activities. The vehicles and equipment funded under this RFP will operate many years and will pro-vide long-term emissions reductions.

Resource Impacts

Total amount of available funds for the Carl Moyer Program under RFP#P2006-01 is ap-proximately $18.6 million comprised of approximately $6.7 million under AB923, and $12,181,983 allocated to the AQMD by CARB under SB1107, of which $11,906,373 is designated for projects funding and $275,610 for administrative costs. Total cost of pro-jects proposed in this Board letter shall not exceed $388,677, comprised of $119,442 from AB923 funds and $269,235 from SB1107 funds.

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