BOARD MEETING DATE: February 3, 2006
AGENDA NO. 8

Recognize Funds from U.S. EPA and Amend Contract to Demonstrate an LNG Locomotive

SYNPOSIS:

The U.S. EPA recently awarded $100,000 in grant funds to the AQMD as part of its 2005 Collaborative Demonstration Project Program. The funding will assist in a prior Carl Moyer award for an LNG short line locomotive operating between the Ports of Los Angeles and Long Beach and a cargo facility in Lancaster with Hunter & Hunter Trucking. This action is to recognize the award and amend the existing contract with Hunter &Hunter Trucking with the additional $100,000 to pay for inspection and quality control costs.

COMMITTEE:

Technology, January 27, 2006. Less than a quorum was present during the discussion of this item; the Chairman communicated his concurrence and recommendation that this item be forwarded for Board consideration.

RECOMMENDED ACTIONS:

1. Recognize $100,000 in revenue from the U.S. EPA in association with the 2005 Diesel Collaborative Demonstration Project funds and place it in the Carl Moyer Program Fund.
2. Authorize the Chairman to amend the existing contract with Hunter & Hunter Trucking or Clean Air Partners Transportation Systems, Inc. (CAPTS) in the event Hunter & Hunter Trucking assigns the contract to them to increase the amount by $100,000 to pay for inspection and quality control functions of the locomotive acquisition/conversion process.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Much of the cargo entering and leaving the Ports of Los Angeles and Long Beach is transported via the regional freeways. With almost 10 million twenty-foot containers leaving these ports each year, the truck traffic in the region has reached critical levels. The traffic conditions contribute to heightened levels of diesel emissions, traffic congestion at the ports and highways across the region. On March 5, 2004, the Board approved an LNG locomotive repower project with Hunter & Hunter Trucking in an amount not to exceed $1,719,265 under the Carl Moyer Program. This LNG short line locomotive project is part of a larger project where trucks that normally pick up containers at the ports will instead pick-up the containers at a distribution center that is removed from the ports. The containers will be transported from the ports to the distribution center by rail using a clean LNG locomotive. It is estimated that this project will result in the reduction of 17.2 tons of NOx, and 0.43 tons of PM per year.

Subsequently, in July 2005, the U.S. EPA awarded $100,000 to the AQMD for the LNG short haul locomotive project as part of the 2005 Diesel Collaborative Demonstration Project. The additional $100,000 is proposed to be placed in the AQMD’s Carl Moyer Program special revenue fund.

Proposal

This action is to recognize $100,000 in grant funds from the U.S. EPA to the Carl Moyer Program special revenue fund. The cost of the existing contract with Hunter & Hunter Trucking is proposed to be augmented by an additional $100,000 of U.S. EPA funds for a total cost not to exceed $1,819,265.

The $100,000 portion of the funds will be available to Hunter & Hunter Trucking to pay for the inspection and quality control functions of the locomotive acquisition/conversion process, as approved by the U.S. EPA. The remaining balance will be paid when the LNG locomotive is placed into regular service.

Benefits to AQMD

The successful implementation of this project will reduce NOx and VOC emissions which are ozone precursors. This project will also reduce diesel PM emissions, which are a toxic air contaminant. Successful implementation of this project may serve to encourage the purchase and use of LNG locomotives.

Resource Impacts

The total cost of the project shall not exceed $1,819,265 comprised of $100,000 in grant funds from the U.S. EPA and $1,719,265 from the Carl Moyer Program.

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