BOARD MEETING DATE: July 8, 2005
AGENDA NO. 5

Approve the Carl Moyer Program Guideline under SB 1107 and AB 923, and Issue the Program RFP for FY 2004-05, and Amend Three Contracts and Execute Contract for FY 2003-04 Carl Moyer Program.

SYNOPSIS:

This action is to approve the Carl Moyer Program Guideline under SB 1107 and AB 923, and to approve the release of an RFP to provide incentives for low emission on- and off-road vehicles and equipment for FY 2004-05 Carl Moyer Program. Total amount of available funding will be approximately $18.6 million, comprised of approximately $6.7 million collected under AB 923 for CY 2005, and $11,906,373 allocated to AQMD under SB 1107. If more funds become available by the time of awards approval, more projects will be awarded accordingly. This action is also to amend three prior project awards, and approve an additional award not to exceed the total returned funds of $919,736 for the Carl Moyer Memorial Air Quality Standards Program.

COMMITTEE:

Technology, June 24, 2005, Recommended for Approval

RECOMMENDED ACTION:

1. Approve the Carl Moyer Memorial Air Quality Standards Attainment Program Guideline under SB 1107 and AB 923 in Attachment 1.
    
2. Approve issuance of RFP# P2006-01, in the amount of $18.6 million, to solicit projects for the FY 2004-05 Carl Moyer Memorial Air Quality Standards Attainment Program.
    
3. Authorize the Chairman to modify the following Carl Moyer Program awards:

1. From a contract with Omnitrans for the purchase of eight new Gasoline/Hybrid transit buses in an amount not to exceed $207,292 from the Carl Moyer Prop. 40 fund, to a contract to purchase eight new CNG transit buses, in an amount not to exceed $64,000 from the Carl Moyer Prop. 40 Fund originally awarded on March 4, 2005.
    
2. From a contract with Ameron International to repower seven diesel loaders and two diesel stackers in an amount not to exceed $548,095, to the repower of five diesel stackers and four diesel loaders/graders in the same unchanged amount from the Carl Moyer Program Prop. 40 Fund, originally awarded on March 4, 2005.
    
3. From an award to Robert Black, to an award to Catalina Passenger Services, Inc. to repower the same four diesel marine engines in the unchanged amount of $396,955 from the Carl Moyer Program Prop. 40 Fund, originally approved on March 4, 2005.

4. Authorize the Chairman to execute a contract with Rentrac Inc., for the repower of four dual engine wheel scrapers and one dual engine wheel scraper (front engine only) in an amount not to exceed $840,594 from the Carl Moyer Program Prop. 40 funds and one dual engine wheel scraper (rear engine only) in an amount not to exceed $79,142 from the Carl Moyer Program 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, locomotive, and agricultural engines, as well as forklifts, airport ground support equipment, and auxiliary power units.

This is the seventh year of the CMP. However, this is the first year of the program with a long-term source of funding generated under SB 1107 and AB 923. Senate Bill 1107 provides approximately $61 million a year in funding statewide. Under AB923, the AQMD will be receiving the revenue beginning July 1, 2005, which will amount to approximately $11 million in CY2005.

CARB has allocated $12,181,983 to the AQMD under SB 1107 for implementation of the FY 2004-05 CMP. Of this amount, $275,610 is designated for administrative and outreach efforts as allowed under SB 1107, and $11,906,373 for projects funding. In addition, from funds collected under AB 923 in CY 2005, approximately $6.7 million will be added to the CMP funding making the total sum of available funding approximately $18.6 million. The $6.7 million taken from AB923 funds will consist 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

Carl Moyer Program Guideline
A proposed guideline for the implementation of the Carl Moyer Air Quality Standards Attainment Program with continuous funding from SB 1107 and AB 923 is included as Attachment 1, for the Board’s consideration and approval.

Carl Moyer Program RFP
For year seven of the CMP, staff is requesting approval to release RFP# P2006-01. As discussed above, funding for this year’s program comes from SB 1107 and AB 923, and amounts to approximately $18.6 million. If more funds become available by the time of awards approval, more projects will be awarded up to the total amount of funds available. The program guidelines are currently being revised by CARB staff and it is anticipated to be approved by the CARB Board in November of this year. In the interim, CARB has directed that the current CMP guidelines which were approved on September 30, 2003, be used with inclusion of the recently issued program advisories. Staff has modified the RFP requirement to be consistent with CARB’s program advisories. Funds generated under SB 1107 and AB 923 for this year’s program cannot be intermingled with previous years funding. All funding sources, including returned funds from past years’ awards must be specifically identified and awarded separately.

The CMP guidelines require that the emission reductions be a minimum of 15 percent for repower or retrofit applications and 30 percent for new engines. Staff proposes a more stringent criteria for cost-effectiveness in some sectors based on experiences derived from past solicitations. Table 1, outlines the proposed minimum funding allocations and the maximum allowed cost-effectiveness requirements for each category and subcategory:

Table 1
Proposed Funding and Cost-Effectiveness Limits
 

*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.
 

Prior to year six of the CMP, only projects reducing NOx emissions qualified for funding. However, based on the requirements of AB 923, CARB has been charged to develop new guidelines establishing cost-effectiveness limits for reducing PM10, VOC, and NOx emissions. Until the new program guidelines are adopted, CARB has released the CMP Program Advisory # 05-001 that addresses the revised cost-effectiveness calculation for the interim period, which will be used in this year’s evaluations.

The sum of a project’s NOx, PM10 and VOC emission reductions will be used to calculate cost-effectiveness. This will allow projects that reduce one, two, or all of the covered pollutants to receive funding. VOC, NOx and non-combustion PM10 reductions will be given equal weight; however emission reductions of combustion PM are a priority and will carry greater weight in the calculation. The interim formula for cost-effectiveness calculation is shown below:

The proposed RFP will solicit projects for on- and off-road vehicles and equipment, including refuse haulers, on-road trucks, transit buses, locomotives, agricultural engines, marine and port applications, and other vehicles and equipment. New engines, repowers and retrofits are allowed within the program. As in previous years, AQMD will fund diesel to diesel applications only when alternative fuel engines/vehicles are not commercially available or certified by CARB. At least 40 percent of funding will be awarded to projects related to goods movement. Projects to retrofit on-road heavy-duty diesel vehicles with CARB verified traps will be allowed to compete for funding, as particulate matter is now one of the criteria pollutants qualifying for funding. The projects would need to meet the cost-effectiveness and all the other requirements of the program.

Proposals for all categories will be due September 30, 2005. Staff expects to finalize the review and evaluation of the proposals and recommend awards for Board approval on or before the January 2006 Governing Board meeting, contingent upon receiving the required funds from CARB. The Carl Moyer Program RFP is included as Attachment 2.

Turn-back Funds
Turn-back funds have become available since the last Board action approving awards for the CMP on March 4, 2005. Table 2 shows the total amount of funds available from turn-back funds and Table 3 shows the detailed breakdown of the entities who have returned the funds.
 

Table 2

Summary of CMP Available Funds
 

Table 3

Details of CMP Available Funds
 

Staff is recommending modifications to two awards approved by the Board on March 4, 2005. In addition, staff is also recommending the approval of a new award to one project under the CMP from the same pool of proposals that were submitted for the March 4, 2005 awards using the CMP returned funds as outlined below:

1. Modification of award to Omnitrans, originally approved on March 4, 2005, for the purchase of eight gasoline/hybrid transit buses in an amount not to exceed $207,292, to the purchase of eight CNG transit buses in an amount not to exceed $64,000 from the Carl Moyer Program Prop. 40 fund. The project modification will be more cost-effective than originally reported and therefore the award amount is reduced accordingly.
    

2. A no-cost modification of an award to Ameron International, originally approved on March 4, 2005, for the repower of seven diesel loaders and two diesel stackers to the repower of five diesel stackers and four loaders/graders in the unchanged amount of $548,095 from the Carl Moyer Program Prop. 40 fund.
    

3. A no-cost modification of award to Robert Black, originally approved on March 4, 2005 to an award to Catalina Passenger Services, Inc. to repower the same four diesel marine engines in the unchanged amount of $396,955 from the Carl Moyer Program Prop. 40 Fund.
    
4. Approval of a new project with Rentrac, Inc. to repower four dual engine wheel scrapers and one dual engine wheel scraper front engine in an amount not to exceed $840,594 from the Carl Moyer Program Prop. 40 funds and one dual engine wheel scraper rear engine in an amount not to exceed $79,142 from the Carl Moyer Program Fund. Rentrac was the next eligible project for funding in the list of proposals submitted for the awards made on March 4, 2005, and was originally funded for a portion of their proposal. This will exhaust the remaining returned Prop. 40 and the Carl Moyer Program funds.

Funding Distribution

As required by AB1390, the new CMP guidelines include the requirement that at least 50% of the program funds must be spent in disproportionately impacted areas. Funding allocated under SB1107 and AB923 will be approximately $18.6; therefore approximately $9.3 million will be awarded to projects located in disproportionately impacted areas. It has been the policy of the AQMD to allocate at least 50% of all funding available in the CMP, including roll-over funding from previous years and turnback funds to disproportionately impacted areas.

Disproportionately Impacted Areas Point Ranking

The requirements of the CMP will be implemented according to the following criteria.
 

1)	All projects must qualify for the Carl Moyer program by meeting the cost effectiveness limits established in the RFP.
2)	All projects will be evaluated according to the following criteria to qualify for funding as a disproportionately impacted area:

	a)	Poverty Level: All projects in areas where at least 10 percent of the population falls below the Federal poverty level based on the year 2000 census data, are eligible to be included in this category, and
	b)	PM Exposure: All projects in areas with the highest 15 percent of PM concentration will be eligible to be ranked in this category. The highest 15 percent of PM concentration is 46 micrograms per cubic meter and above, on an annual average, or
	c)	Air Toxics Exposure: All projects in areas with a cancer risk of 1,000 in a million and above (based on Mates II estimates) will be eligible to be ranked in this category.

The maximum score will be comprised of 40 percent for poverty level, and 30 percent each for PM and toxic exposures. 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 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.

Benefits to AQMD

AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low emission, alternative fuel technologies within its Technology Advancement Office. The AQMD has also supported a number of activities directed to commercialization 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, providing long-term emissions reductions.

Resource Impacts

Total amount of available funds for the Carl Moyer Program under RFP# P2006-01 is approximately $18.6 million comprised of approximately $6.7 million as part of funds to be collected under AB923 in CY2005, and $12,181,983 allocated by CARB under SB1107, of which $275,610 is designated for administrative costs and $11,906,373 for projects funding.

Attachments: (EXE 1.5mb) 
(Note: a clerical error in Appendix 7-Agricultural Equipment Application was corrected after the Board meeting. To access the complete RFP, including corrected Appendix 7, please click here.)

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