BOARD MEETING DATE: May 6, 2005
AGENDA NO. 12

Issue RFP to Solicit Projects to Meet Emission Reduction Targets under Rule 2202 Air Quality Investment Program

SYNOPSIS:

Rule 2202 - On-Road Motor Vehicle Mitigation Options was adopted on December 8, 1995 and amended on February 6, 2004. One of the compliance strategies under Rule 2202 allows employers to invest in the AQIP. Monies received are placed in a restricted account to fund programs that result in equivalent emission reductions that would otherwise have been achieved by the participating employers. This action is to release a revised RFP to solicit proposals to achieve emission reduction targets for the second semiannual period of calendar year 2004. The RFP provides a modified evaluation criteria for selection of projects for the AQIP funding.

COMMITTEE:

Mobile Source, April 22, 2005, Recommended for Approval

RECOMMENDED ACTION:

Approve issuance of RFP# P2005-25 to solicit proposals to achieve emission reduction targets set by Rule 2202 AQIP.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Rule 2202 Air Quality Investment Program (AQIP) allows affected employers to participate by electing to invest in an AQMD-administered restricted fund. Investment can be either $60 annually per employee reporting to the worksite during the 6:00 a.m. to 10:00 a.m. peak window, or $125 triennially per employee. The restricted monies are to be used by the AQMD to fund proposals that achieve mobile source emission reductions that would otherwise have been achieved by implementing a rideshare program.

Upon registering under this option and submitting the designated investment amount, an employer is considered to be in compliance with the Rule and there is no need for the employer to take further action to reduce mobile source emissions. The collected monies are used to fund alternative mobile source emission reduction strategies that reduce mobile source emissions at a more cost-effective rate which could potentially result in greater overall emission reductions. To determine qualified projects for funding under Rule 2202 AQIP, the Board previously approved an RFP that was released on a periodic basis. Staff is proposing a revised RFP based on experience with prior project submittals and Board-approved awards.

Proposal

Staff recommends that the Board approve a revised scoring methodology to rank project proposals submitted under Rule 2202 AQIP which eliminates all subjective scoring criteria and places more emphasis on the combination of projects’ cost-effectiveness and the targeted reductions of VOC, NOx, and CO emissions.

All project proposals will be divided into the following categories and the proposals in each category will be scored separately based on overall cost effectiveness and the "additional points" criteria as defined in the RFP (i.e., small business, disabled veteran, etc.):

• Marine vessel repowering
• On-road alternative fuel projects
• Off-road diesel repowering
• Old-vehicle scrapping
• Mobility enhancing services
• Miscellaneous

Staff believes that a significant portion of the available funds should be allocated to on-road mobile source related projects since one of the primary objectives of Rule 2202 AQIP is to achieve equivalent emissions reductions in those areas where rideshare programs would have otherwise been implemented. As such, at least 60 percent of the total available AQIP funds is proposed to be allocated to on-road mobile source projects including old-vehicle scrapping. The remaining 40 percent will be disbursed among the four remaining categories with no minimum for any one category. If there are insufficient on-road mobile source proposals or old-vehicle scrapping proposals that would satisfactorily achieve the total emission reduction target at the 60 percent funding minimum, staff proposes that a greater number of projects from the other categories (beyond the 40 percent funding level) be selected in order to achieve the overall emission targets.

Proposals will be ranked by overall cost-effectiveness for a combination of VOC, NOx, and CO emissions reductions within each category. In order to meet the emission reduction targets for the three individual pollutants, proposals generating required emission reductions may be selected irrespective of their overall ranking. For example, a project ranked third overall may not be selected if the next highest ranking project provides greater emission reductions to meet the needed targeted reductions for an individual pollutant, but may be less cost-effective. As such, proposals from all categories may not be selected and the highest ranking proposals in each category may not necessarily be recommended for award, whereas more than one proposal may be chosen from a particular category. This is because the overall cost-effectiveness is calculated based on a combination of three pollutants, whereas projects may be chosen to meet the emission reduction target for an individual pollutant. The project selection will be based first on a combination of highest ranking proposals to meet the required VOC target. The remaining project proposals that can provide the needed NOx emissions reductions will be selected next, followed by the selection of project proposals that generate the needed CO emission reductions.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP 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 may 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.

Resource Impact

Funding for selected project proposals will be provided from the Rule 2202 AQIP funds.

Attachment

RFP# P2005-25; Rule 2202 - On–Road Motor Vehicle Mitigation Options

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