BOARD MEETING DATE: September 9, 2005
AGENDA NO. 6

Execute Sole Source Contract for Voluntary Vehicle Emission Testing and Repair Assistance Program, Issue RFP for High Emitting Light- and Medium-Duty Vehicle Identification Program, Issue Voluntary High Emitting Vehicle Scrapping Program Announcement, and Establish Voluntary Vehicle Scrapping Incentive Program and Contingency Fund

SYNOPSIS:

At its February 2005 meeting, the Board approved the allocation of $4 million for a light-duty vehicle remote sensing, repair, and scrapping program under AB 923. This action is to: 1) execute a sole-source contract with the Foundation of California Community Colleges for conducting a voluntary vehicle emission testing and repair assistance program in the amount of $1 million; 2) issue a remote sensing-based RFP for a high emitting light- and medium-duty vehicle identification program in the amount of $1 million; 3) issue a Program Announcement for the voluntary high emitting vehicle scrapping program; 4) establish a voluntary vehicle scrapping incentive program in the amount of $1 million under the AB 923 restricted revenue account; 5) establish a contingency account for funding uncertainties in the number of voluntary participants in this incentive program in the amount of $700,000 under the AB 923 restricted revenue account; and 6) set aside $300,000 from the AB923 revenue account for outreach and data analysis. The total amount for this program is not to exceed $4 million.

COMMITTEE:

Technology, July 22, 2005, Recommended for Approval

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute a sole source contract with the Foundation for California Community Colleges, in an amount not to exceed $1, 000,000 for the voluntary testing and subsequent vehicle repair, retirement or replacement of the high emitting vehicle from the AB 923 revenue account under the Carl Moyer Fund.
    
2. Authorize the issuance of the Request for Proposals RFP #P2006-06- High Emitting Light- and Medium-Duty Vehicle Identification Program to solicit experts in mobile source remote sensing technology in an amount not to exceed $1,000,000 from the AB 923 revenue account under the Carl Moyer Fund.
    
3. Approve establishment of a Voluntary Vehicle Scrapping Incentive Program in the amount of $1 million from the AB 923 restricted revenue account and authorize the Executive Officer to disburse funds authorized under provisions of AB 923 in an amount not to exceed $3,000 per vehicle. A component of this program will include a $2,000 reimbursement for consumers who qualify as a low-income participant and who can subsequently document the replacement vehicle as being a Low Emission Vehicle as certified by the California Air Resources Board.
    
4. Authorize the issuance of a Voluntary High Emitting Vehicle Scrapping Program Announcement soliciting participation from DMV licensed vehicle dismantlers and receive all revenues generated from participating vehicle dismantlers into the AB 923 revenue account.
    
5. Approve establishment of a contingency amount of $1 million under AB 923; $700,000 for funding uncertainties in the vehicle repair and retirement program; $300,000 for the purpose of outreach and data analysis. Staff will request Board approval prior to entering into any contractual commitment for outreach and data analysis. Authorize the Executive Officer, if necessary, to utilize the $700,000 contingency fund to: 1) amend contract funding with FCCC by an additional $200,000 in a total amount up to $1.2 million; and 2) increase the Voluntary High Emitting Vehicle Scrapping Program Fund by an additional $500,000 to provide additional reimbursement for purposes of vehicle retirement and replacement for low income eligible consumers in a total amount up to $1.5 million.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMD has a long history implementing programs to reduce mobile source related emissions, including programs that encourage the use of low-emission vehicles for purposes of achieving state and federal ambient air quality standards. The Board has adopted several programs to reduce emissions from on-road and off-road vehicles, as well as emissions from other equipment, including the School Bus Incentive Program and the Carl Moyer Program.

On September 23, 2004, the Governor signed AB 923 (Firebaugh) which resulted in a significant increase in funding for programs that achieve emission reductions from vehicular sources and off-road engines. At its February 2005 meeting, the Board established the AB 923 special revenue account under the Carl Moyer Fund to receive and administer funds authorized under provisions of AB 923. The Board also approved the allocation of $4 million for a light-duty vehicle remote sensing, vehicle repair/scrapping program under AB 923.

Staff is proposing five elements to the Light Duty Repair Assistance and Scrappage Program. These five elements are described below.

1. Remote Sensing Program
   Staff proposes to develop and implement a program to identify the highest emitting light- and medium-duty vehicles operating within the AQMD jurisdictional boundaries and reduce precursor emissions from high emitting vehicles through a voluntary repair or retirement (scrapping) program. A Request for Proposals RFP #P2006-06 - High Emitting Light- and Medium-Duty Vehicle Identification Program will solicit contractors with technical expertise in mobile source remote sensing technology, for purposes of developing and implementing a program which identifies high emitting light- and medium-duty vehicles. The contractors will use remote sensing devices (RSDs) in conjunction with video cameras and recording equipment to measure approximately 10% of the total light- and medium-duty vehicle population within the AQMD jurisdictional boundaries. The contractor will then develop a database of high emitting vehicles that will include vehicle identification information using DMV records.
    
2. Emission Testing & Repair Program
   The information obtained through the remote sensing study will then be provided to the Foundation for California Community Colleges (FCCC) under a sole source agreement. The FCCC will cross reference the highest percentage of emitters from the study with existing Bureau of Automotive Repair (BAR) vehicle emission data (Smog Check history records) to produce a list of vehicles with the greatest emission reduction potential. The FCCC will send out contact letters to the registered vehicle owners of the identified high emitting vehicle requesting their voluntary participation in the program. The program will offer consumers either an opportunity to receive up to $500 in repair assistance to reduce tailpipe emissions to meet current smog check cutpoints or the opportunity to retire the vehicle through an AQMD sponsored retirement program providing the consumer $1,000 for the vehicle. Additionally, participants who qualify as low-income eligible consumers, as defined by the State of California, will be eligible for an additional $2,000 payment upon documentation of replacing the retired vehicle with a LEV or cleaner vehicle.
    
   The FCCC will perform all testing and repairs for participants who volunteer to participate in the program. This program will be available to those consumers determined to be off-cycle of the existing Enhanced Smog Check Program (vehicles not within three months of smog check renewal date). Participants deemed to be on-cycle (within three months of smog check renewal date) will be referred to the Bureau of Automotive Repair’s (BAR) consumer assistance program. FCCC will perform periodic testing for vehicles whose registered owners option into a vehicle retirement program. Consumers retiring high emitting vehicles will be directed to the AQMD for subsequent arrangements with contracted vehicle dismantlers. For such participants, the AQMD will reimburse with payments and/or vouchers ranging from $1,000 to $3,000, respectively depending upon the participants income eligibility. Payment of such incentives will be administered by the AQMD through funding of a Voluntary Vehicle Scrapping Incentive Program in the amount of $1 million under the AB 923 restricted revenue account. The Board is requested to establish this program and authorize the Executive Officer to disburse these incentive funds to the vehicle owners as authorized under provisions of AB 923.
    
3. Scrapping Program
   AQMD staff will solicit competitive proposals from qualified contractors for the scrapping of those vehicles through the Voluntary High Emitting Vehicle Scrapping Program Announcement. The successful bidders should be DMV certified dismantlers knowledgeable and experienced in the scrapping of light- and medium-duty vehicles and offer cost sharing based on the scrap value of the retired vehicles. Revenue from these dismantlers would be deposited into the AB 923 restricted revenue account. The dismantler or dismantlers would have a dismantling facility within each of the four-county region of the AQMD. The qualified contractor or contractors will be required to have all emission-related and drive train parts of the identified high emitting vehicle removed and destroyed. Proof of destruction, as well as income eligibility will be required prior to vehicle owners receipt of the incentive funds and/or vouchers.
    
4. Contingency Amount
   The two programs involving the voluntary participation of consumers to have their vehicles either repaired or scrapped have never been undertaken by an air district. As such, it is difficult to predict the level of participation in each of the two different programs proposed and the amount of funding required for each program. As such, staff requests the Board establish a contingency amount under the AB 923 restricted revenue account and authorize the Executive Officer to amend the contracts up to an additional $700,000 within the restricted revenue account to the repair assistance program or reimbursement to consumers who retire and replace their high emitting vehicle. This would allow the Executive Officer to augment the Board authorized programs and contracts on an as-needed basis to ensure a smooth and continuously functioning mechanism for producing emission reductions. Additionally, a concerted effort may be required to increase the participation rate of consumers that have high emitting vehicles through a focused outreach effort. Data analysis may be required to determine the success and shortfalls of the program in terms of capturing high emitting vehicles and performing repairs or vehicle scrapping. Staff is requesting a set aside sum of $300,000 for purposes of outreach and data analysis. Staff will determine outreach and data analysis needs as implementation of the program are conducted and will request Board approval prior to entering into any contractual commitment.

In summary, staff is recommending the following allocation of the five proposed elements as follows:
 

Sole Source Justification for Emission Testing & Repair Program

In the "Procurement Policy and Procedure" document, subdivision B.2.c of Section VIII allows the awarding of a sole source contract based on "The unique experience and capabilities of the proposed contractor or contractor team". Staff proposes entering into an inter-agency agreement with the Foundation for California Community Colleges (FCCC) for the voluntary testing and subsequent repairing or retirement of the highest emitting vehicles identified in the Proposal. The FCCC is currently the only contractor that is providing the Referee function for California’s existing Smog Check Program.. In this capacity they interact with consumers in resolving conflicts between consumers and the smog check stations in the testing and/or repairs of the vehicles. The current Referee program handles the testing of vehicles that cannot be tested at either "test-only" or "test & repair" stations.

In the past, the FCCC was an integral component of the State’s Consumer Assistance Program (CAP). This program, which also offers repair assistance and a vehicle retirement components, was successfully implemented by the FCCC. Other aspects of the FCCC program which warrants a sole source arrangement with the FCCC are as follows:

1. Past studies similar to the AQMD’s pilot proposal, indicates the preference of consumers interacting with non-governmental agencies or non-industry sponsored stations. This has been documented and substantiated by AQMD technical consultants and recognized experts in such pilot studies. The concerns range from profit and regulatory motivation.
    
2. The existing FCCC program has staffing and a call center which can handle consumer’s inquiries and have the ability to schedule appointments at referee stations at selected community colleges.
    
3. The current FCCC (Referee Program) operates on a separate software operating system that gives the FCCC the ability to segregate the data collected from the pilot program from California’s existing vehicle identification database (VID). Because this is a voluntary program, consumers have voiced concerns of data being entered into California’s official database for gross polluters. Additionally, the creation of a separate database for the pilot program, will give the SCAQMD and FCCC the ability to thoroughly analyze the database for future recommendations in developing guidance documents for future light duty programs.

FCCC is the authorized statewide auxiliary organization of the community colleges pursuant to California Education Code Sections 72670-72682. It is incorporated as of May 21, 1998 under the provisions of the California Corporations code as a nonprofit public benefit corporation, exclusively for education, administrative and related services of the California Community Colleges. The FCCC operates 36 referee stations throughout the state, mostly on California Community College campuses.

Upon Board approval, the AQMD may enter into an interagency agreement with the FCCC and FCCC is empowered to conduct the activities described in this Agreement which form a comprehensive approach to the provision of support services for SCAQMD, to improve air quality within the jurisdictional boundaries of the SCAQMD and its downwind regions, and finally to bolster the community colleges automotive technician program.

Benefits to AQMD

As emission contributions from stationary sources become a smaller component of the AQMD’s emissions inventory, the focus has been directed at mobile source emissions. Mobile source emissions represent a major category of the emissions inventories for both ozone and fine particulate matter. This proposed program focuses on the light- and medium-duty category which is a major category in the on-road emissions inventory. With the State of California having primary authority to control emissions from mobile sources, this AQMD program will be a voluntary program for consumers interested in reducing emissions from their vehicles either via a repair assistance program or a vehicle retirement and replacement program.

As such, the AQMD staff is proposing that the AQMD enter into an interagency agreement with the Foundation of California Community Colleges for purposes of testing and repairing of vehicles identified as high emitting vehicles. Currently, the FCCC is operating California’s Smog Check Referee Program for purposes of the State’s Smog Check Program at many of the community colleges throughout California. The Referee Program includes the handling of consumer’s disputes regarding repairs and testing of California’s consumer vehicles. The community colleges providing these services offers an unbiased service in resolving disputes and offering smog check tests for consumer’s vehicles. AQMD staff believes that the implementation of a voluntary program is greatly enhanced by having the community colleges and a non-profit education institution as an integral component of the program.

Resource Impacts

The total amount of AQMD funding for this program shall not exceed $4,000,000 from the AB 923 special revenue account under the Carl Moyer Fund. Of that amount, staff recommends (1) contracting with the Foundation of California Community Colleges in the amount of $1 million; (2) issuing an RFP for High Emitting Light- and Medium-Duty Vehicle Identification and Emission Reduction Program in an amount not to exceed $1 million; (3) establishing a Voluntary Vehicle Scrapping Incentive Program in an amount not to exceed $1 million under the AB 923 restricted revenue account; (4) establishing a $1 million contingency amount for funding uncertainties in this incentive program and for purposes of outreach and data analysis not to exceed $700,000 and $300,000 respectively.

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 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.

Attachments (EXE 441kb)

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