BOARD MEETING DATE: June 2, 2006
AGENDA NO. 25

Mobile Source Air Pollution Reduction Review Committee

SYNOPSIS:

Below is a summary of key issues addressed at the MSRC’s regular April 27, 2006 meeting as well as its May 25, 2006 joint retreat with its Technical Advisory Committee. The MSRC’s next meeting is Thursday, June 22, 2006, at 1:30 p.m. in Room CC8.

RECOMMENDED ACTION:

Receive and file.

Henry Hogo
Assistant Deputy Executive Officer/
Science & Technology Advancement

Minutes and Ratification of Actions

Minutes from the April 27, 2006 meeting and July 21, 2005 meeting were unanimously approved. They are attached for your information (Attachment 1). Additionally, the recommendations taken at the MSRC’s April 27, 2006 meeting, as a committee of the whole, were ratified by a quorum of the MSRC at its May 25, 2006 meeting.

MSRC Annual Retreat with its Technical Advisory Committee

The MSRC conducted its annual joint retreat with its Technical Advisory Committee on Thursday, May 25, 2006, at AQMD Headquarters in Room GB. The MSRC heard presentations on: a review of its past accomplishments and the state of air quality; state legislature activities, bond measures, and administrative issues relevant to the MSRC’s mission; CARB’s actions over the last year and its funding priorities which primarily focus on goods movement issues; the Carl Moyer Program and its revenue sources, anticipated funding allocations, and funding opportunities; heavy-duty on-road emission standards and engine certifications; and a technology update including priorities identified by the AQMD’s Technology Advancement Office. The MSRC was also presented with a case study of a 100-acre construction project and what local governments can do to mitigate air quality impacts. Finally, a future look at the state of air quality and mandates in 2007 and beyond as they relate to MSRC programs was presented as well as an outline of potential funding options for the MSRC’s FY 2006-07 Work Program. At the conclusion of the retreat, the MSRC directed its Technical Advisory Committee to convene its subcommittees and develop a range of options for their consideration.

Annual Elections of MSRC Chair and Vice Chair

The MSRC's Operational Policies and Procedures call for the annual election every May of the chair and vice chair of the MSRC and its Technical Advisory Committee (MSRC-TAC). At its May 25, 2006 meeting, the MSRC unanimously re-elected its current chair Gwenn Norton-Perry, who is a Council Member of Chino Hills and represents the San Bernardino Associated Governments on the MSRC. This will be her third term as chair. The MSRC also unanimously re-elected Ron Roberts as its vice-chair for another one-year term. Mr. Roberts is a Council Member of Temecula and represents the Southern California Association of Governments on the MSRC. This will also be his third term.

At the MSRC-TAC’s May 11, 2005 meeting, they unanimously voted to re-elect their current chair Gretchen Hardison for another one-year term. Ms. Hardison represents the City of Los Angeles. The MSRC-TAC also re-elected its current vice-chair, Vince Mastrosimone, who represents the cities of Los Angeles County. This will be their fourth term.

FY 2005-06 Work Program Awards

The MSRC developed a two-phase FY 2005-06 Work Program. Phase I was approved by the AQMD Board on September 9, 2005, and included $2.5 million for alternative fuel infrastructure and $2 million for CNG school bus incentives. Phase II was approved by the Board on April 7, 2006, and included $1 million for a Local Government Match Program and $2 million for an Advanced Natural Gas Heavy‑ Duty Engine Program, subject to approval of details, plus an additional $2 million for school bus incentives. At its April 27, 2006, the MSRC, meeting as a committee of the whole, due to lack of a quorum, unanimously recommended, with a 4-0 vote, the following FY 2005-06 Work Program actions:

1. Funding for an application, which was received from Clean Energy in the amount of $250,000, for construction of a new publicly accessibly CNG refueling station located in the City of Newport Beach, under Phase I. The MSRC and AQMD Board previously approved six applications totaling $1,333,981 under the Alternative Fuel Infrastructure Funding Opportunities Program;
2. Issuance of a Program Announcement for the Local Government Match Program with $1 million target funding, providing matching funds dollar for dollar to AB 2766 City/County Subvention Funds and/or local funds for the purchase of alternative fuel heavy-duty vehicles and infrastructure, under Phase II;
3. A sole-source award to Westport Innovations, Inc. and its local distributer in the amount of $2 million to implement buy-down incentives up to $50,000 per engine for Westport’s 15-liter ISX HPDI engine, which is certified below CARB’s optional NOx plus non-methane hydrocarbon standard, under Phase II; and
4. A contract modification providing additional dollars in the amount of $1.02 million for CNG school bus incentives to California Bus Sales, with $260,000 from Phase I monies and $760,000 from Phase II monies.

The MSRC ratified the above actions at its May 25, 2006 meeting, as noted above. Additionally, on May 25, 2006, with a 5-0 vote, five members being a quorum, the MSRC also unanimously approved the following FY 2005-06 Work Program actions:

1. A contract modification providing additional dollars in the amount of $660,000 for CNG school bus incentives to BusWest, from the additional $2 million for school bus incentives allocated as part of the Phase II FY 2005-06 Work Program; and
2. Funding for one additional application, which was received from Clean Energy in the amount of $150,000, for construction of a limited access CNG refueling station located in Baldwin Park, under the Alternative Fuel Infrastructure Funding Opportunities Program in Phase I.

The AQMD Board is scheduled to consider these awards on June 2, 2006. Additional awards under the Alternative Fuel Infrastructure Funding Opportunities Program are anticipated, since the program announcement is open through June 30, 2006, and will be subject to MSRC and AQMD Board approval.

Adoption of Meeting Schedule Change

The MSRC has traditionally met on the fourth Thursday of the month. However, because the AQMD Governing Board meets on the first Friday of the month, it has become increasingly difficult for staff to prepare and submit Work Program recommendations from the MSRC to the AQMD Board in a timely fashion. Following a poll on the schedule of MSRC members, it was determined that the third Thursday was a good alternative meeting date. At its May 25, 2006 meeting, the MSRC unanimously adopted a new meeting schedule, effective in July 2006. Starting in July, the MSRC’s Technical Advisory Committee will meet on the first Thursday and the MSRC will meet on the third Thursday, both at 2:30 p.m. in Room CC8 at AQMD Headquarters. A revised 2006 Meeting Schedule is attached for reference (Attachment 2).

Received and Approved Final Report

The MSRC unanimously received and approved a total of nine final reports at its April 27 and May 25, 2006 meeting, as follows:

1. Riverside County Transportation Commission Contract #MS03055, which provided $275,400 to implement Freeway Service Patrols;
2. City of Palm Desert Contract #MS03068, which provided $42,339 to implement PM10 reduction programs in Coachella Valley;
3. Herigstad Equipment Rental Contract #MS04029, which provided more than $1.19 million to repower ten heavy-duty off-road vehicles;
4. Johnson-Ukropina Creative Marketing Contract #MS05004, which provided $1 million to conduct a “Rideshare Thursday” Public Awareness Campaign;
5. Waste Management of the Desert Contract #MS05033, which provided $202,900 towards the purchase of ten CNG waste haulers; and
6. City of San Bernardino Contract #PT05059, which provided $150,000 for installation of diesel exhaust aftertreatment retrofit devices.
7. Omnitrans Contract #AB01013, which provided $508,250 towards the purchase of 13 CNG buses and mechanic training;
8. Long Beach Transit Contract #MS04003, which provided $335,453 towards the purchase of 27 gasoline electric hybrid buses; and
9. Caufield Equipment, Inc. Contract #MS05052, which provided $478,000 towards an off-road construction equipment re-power project.

All final reports are filed in the AQMD's library and a two-page summary of each closed project can be viewed in the electronic library on the MSRC's website. It is anticipated that in the future the MSRC’s website, http://www.cleantransportationfunding.org/, will include complete final reports in its electronic library.

Approval of Miscellaneous Expenditures for FY 2005-06 Third Quarter

The MSRC approved the reimbursement of miscellaneous administrative and mailing costs for FY 2005-06 in the amount of $41,440, in addition to $2,500 for travel. These expenses are included within the 5% administrative cap mandated by the AB 2766 legislation and are adopted by the MSRC as part of an annual Administrative Budget. AQMD staff reported that actual FY 2005-06 third quarter expenses totaled $9,293.45; actual costs to date for the FY are $21,599.11. The MSRC unanimously received and filed this quarterly expense report. The AQMD will be reimbursed accordingly.

Contract Modification Requests

The MSRC considered a total of nine contract modification requests and took action, at their April 27 and May 25, 2006 meetings, as follows:

1. For City of Palm Springs Contract#MS03026, which provides $44,529 to purchase one CNG pickup truck and perform soil stabilization and paving, approval of a nine-month, no-cost contractual term extension;
2. For City of Whittier Contract #ML04012, which provides $260,400 to purchase three medium-duty and four heavy-duty CNG vehicles and construct a CNG refueling station, approval to eliminate the purchase of one heavy-duty CNG cutaway and reduce the contract value accordingly as well as approval of a seven-month contractual term extension; and
3. For R.F. Dickson Contract #MS04050, which provides $250,000 for upgrades to a CNG refueling station, approval of a 16-month, no cost contractual term extension.
4. For City of Cathedral City Contract #MS03031, which provides $79,036 for wind fencing and soil stabilization as part of the Coachella Valley PM10 Reduction Program, approval of a one-year, no cost contractual term extension;
5. For City of San Bernardino Contract #ABL0216, which provides $76,792 for construction of a new LNG/L-CNG station, approval of a 22-month, no-cost contractual term extension;
6. For City of Whittier Contract #ML05021, which provides $130,000 towards the purchase of one medium-duty and six heavy-duty CNG vehicles, approval of a nine-month, no-cost contractual term extension;
7. For City of San Fernando Contract #ML04037, which provides $262,042 towards the purchase of two medium-duty and three heavy-duty CNG vehicles and installation of time-fill and fast-fill CNG stations, approval of a 19-month, no-cost contractual term extension, with the requirement that the contractor provide a progress report in February 2007;
8. For Better World Group #MS03052, which provides $112,631 for outreach coordination services, reallocation of funds totaling $3,823 between tasks to purchase new MSRC display materials for workshops or events at which the MSRC might wish to promote its funding opportunities, and reallocation of funds totaling $1,480 between tasks to develop a newsletter template and prepare content for the first issue of a clean transportation funding electronic newsletter; and
9. For HiP Design Contract #MS05070, which provides $62,185 for MSRC website development and hosting, a $900 increase in the contract award to launch a clean transportation funding electronic newsletter. The AQMD Board, as part of its approval of all past work programs, designated authority to the MSRC to increase contracts up to five percent, and this increase falls within the five percent of the original award approved by the AQMD Board.

The MSRC also approved $3,912 from its Administrative Budget to purchase MSRC decals for display on vehicles purchased, and alternative fuel stations constructed, using MSRC funding.

Ethics Training

AQMD legal counsel advised the MSRC about the ethics training now required under Assembly Bill 1234 since MSRC members are eligible to receive reimbursement of travel expenses if conducting MSRC business. While MSRC members have rarely received any such reimbursement to date, guidance was provided to ensure training would be completed by January 1, 2007, as required by statute.

Status Reports

At its April 27, 2005 meeting, the MSRC received a written update on clean transportation policy issues from its Outreach Coordinator, The Better World Group. The update includes key federal and state administrative activities as well as key legislative activities affecting clean transportation. AQMD staff also briefed the MSRC on legislative issues at both meetings.

Contract Administrator Report

The MSRC's AB 2766 Contract Administrator provides a written status report on all open contracts from FY 1999-00 through the present. This Contract Administrator’s Report for both April and Mayis attached for your information (Attachment 3).

Attachments (EXE 776kb)
1 – Approved 4/27/06 & 7/21/05 MSRC Minutes
2 – Revised Meeting Schedule for 2006
3 - Contract Administrator’s Reports for April and May