BOARD MEETING DATE: July 7, 2006
AGENDA NO. 5

Appropriate Funds and Execute Sole-Source Contract to Conduct Remote Sensing Device Technology Feasibility Study to Measure Locomotive Emissions

SYNOPSIS:

On February 3, 2006, the Board appropriated $300,000 from the General Fund to the Science and Technology Advancement FY 2005-06 Budget, Professional and Special Services Account to conduct a feasibility study to measure locomotive emissions using remote sensing device (RSD) technology as required under  AB 1222.    However, a decision was not reached until recently on a contractor to conduct the study. As such, the $300,000 reverted back to the General Fund. In addition, CARB committed an additional $100,000 to ensure that all aspects of AB 1222 are implemented. This action is to enter into agreement with CARB to provide $100,000 for the AB 1222 study, appropriate $400,000 from the AQMD General Fund, and to execute a sole-source contract with Environmental Systems Products Holdings, Inc. to develop and implement the RSD feasibility study at a total cost not to exceed $400,000.

COMMITTEE:

Technology, June 23, 2006, Recommended for Approval

RECOMMENDED ACTIONS:

1. Authorize the Chairman to enter into agreement with CARB to provide $100,000 to the AQMD to conduct a feasibility study of using remote sensing device technology (RSD) to measure locomotive emissions and, upon receipt, recognize $100,000 into the District General Fund.
2. Appropriate $400,000 from the General Fund, Undesignated Fund Balance to the Science and Technology Advancement FY 2006-07 Budget, Professional and Special Services Account.
3. Authorize the Chairman to execute a sole-source contract with Environmental Systems Products Holdings, Inc. to develop and implement a Remote Sensing Technology Feasibility Study to Measure Locomotive Emissions in an amount not to exceed $400,000 from the Science and Technology Advancement FY 2006-07 Budget, Professional and Special Services Account.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AB 1222 (Jones, Chaptered October 6, 2005) requires CARB to implement a pilot program to determine emissions from locomotives, using remote sensing devices (RSDs). In addition, AB  1222 requires CARB to establish an Advisory Group comprising recognized experts in the field of RSD and locomotive technology, and representatives of citizen community groups, South Coast AQMD, Sacramento Metropolitan Air Quality Management District (SMAQMD), Union Pacific Railroad (UP), and Burlington Northern Santa Fe Railway (BNSF). The specific objectives of the pilot program are to “determine whether remote sensing devices can accurately and replicably determine, with a reasonable level of precision:

1. The levels of nitrogen oxides (NOx), particulate matter (PM), and carbon monoxide (CO) emissions from locomotives.
2. Whether a locomotive is subject to Tier 0, 1, or 2 federal certification standards. 
3. Whether the measured results can be calibrated to determine compliance with applicable federal emission certification levels.”

AB 1222 requires that the program include data from a sufficient number of locomotives that would be representative of the locomotive fleet operating in northern and southern California.   The pilot program will also address the ability of RSD systems to identify high emitting locomotives. In February 2006, the Board appropriated $300,000 from the AQMD General Fund to the Science and Technology Advancement FY 2005-06 Budget conduct the study. However, a decision on the contractor to conduct the study was not reached until recently. As such, the $300,000 reverted back to the AQMD General Fund.

Proposal

Under the provisions of AB 1222, UP and BNSF will contribute  up to a combined maximum of $200,000 to cover costs of implementing the pilot program. The AQMD will contribute the remainder of the costs, not to exceed $300,000. CARB indicated that it will provide an additional $100,000 to this program if necessary, to achieve all of the objectives mandated by AB 1222. CARB in consultation with the Advisory Group has agreed to implement the pilot program in four phases:

After several AB 1222 Advisory Group meetings, the Advisory Group recently selected Environmental Systems Products Holdings, Inc. to conduct the study. Pursuant to the legislation, CARB will  act as the Technical Manager for the contract, but shall work closely with the AQMD and the AB 1222 Advisory Group in all phases of the project.

Staff is requesting the Board  to enter into an agreement with CARB to provide $100,000 and recognize these funds into the General Fund, appropriate $400,000 from the General Fund to the Science and Technology Advancement FY 2006-07 Budget, Professional and Special Services Account, and executing a sole-source contract with Environmental Systems Products Holdings, Inc.  to develop and implement a RSD technology feasibility study to measure locomotive emissions as required under AB  1222 in an amount not to exceed $400,000. Under a separate action, staff has a submitted a proposal to Caltrans to provide $300,000 towards the project. Should Caltrans approve the request, staff proposes that the $300,000 award be used to reimburse the AQMD General Fund. Such an action will be brought to the Board under a separate action.

Sole Source Justification

Under Section VIII,  Subdivision B. 2. c of the AQMD “Procurement Policy and Procedure”,  a sole-source contract  may be awarded based on the following criteria  that the proposed contractor ESP meets:

• Unique experience and capabilities of the proposed contractor or contractor team;
• Project involves the use of proprietary technology;

After several AB 1222 Advisory Group meetings, the Advisory Group concluded that ESP is the world recognized leader in designing and developing remote sensing equipment and services. ESP has developed four generations of remote sensing platforms, and performed over 40 remote sensing studies and campaigns. The Advisory Group concluded that an award to ESP with their comprehensive field and instrument design experience will ensure the greatest likelihood of success for measuring emissions from locomotives.

Additionally, RSD measurement of locomotives is a new science, and while there are some similarities to light duty vehicle measurements, there are also significant differences that will require modification of ESP’s proprietary RSD technology. ESP’s complete understanding of the technology will ensure the best chances of success for the pilot program.

And finally, time is short with a report that must be delivered to the Legislature by December 31, 2006. Use of other vendors will entail significant time and financial resources to train individuals in the operation and use of such devices. ESP’s technical and field RSD experience and expertise guarantees the most time and cost efficient implementation of this time critical program.

Benefits to AQMD

As emission contributions from stationary sources become a smaller component of California’s  emissions inventory, the focus has been primarily directed at mobile source emissions.   Mobile source emissions (both on-road and off-road) represent a major category of the emissions of both ozone and fine particulate matter forming pollutants, and locomotives emit significant levels of ozone forming pollutants, particularly in the Sacramento Metro Area and in the South Coast Basin (equivalent to that of approximately 1.5 million automobiles); this, combined with the close proximity of many rail yards and tracks to communities, demonstrates the necessity of ensuring that only the cleanest locomotives operate in California. Successful implementation and validation of Remote Sensing Devices will allow deployment of such devices across the railroad corridors in both Northern and Southern California  to identify  high emitting locomotives and mandate necessary steps to reduce their emissions. The potential reductions in emissions could be substantial and the mitigation of  health impacts from such reductions could be significant.

Staff is proposing that the AQMD enter into an agreement with ESP Inc. Staff strongly believes that ESP’s experience and technical expertise ensure the best chances of successfully developing and implementing a program that will validate the effectiveness of RSD technology in identifying high emitting locomotives and to realize the emission reductions needed to reduce the health and air quality effects of these emissions.

Resource Impacts

The total amount of AQMD funding for this program shall not exceed $300,000.  In addition, should Caltrans approve a request to provide $300,000 for the AB 1222 study, the funds are proposed to reimburse the AQMD General Fund.