BOARD MEETING DATE: March 3, 2006
AGENDA NO. 5

Execute Contracts for Rule 2202 AQIP and the 2006 Lawnmower Exchange Program

SYNPOSIS:

At its May 6, 2005 meeting, the Board approved release of an RFP to solicit pro-jects to meet Rule 2202 Air Quality Investment Program (AQIP) emission reduc-tion targets for the first semi-annual period of 2005. The Board also approved issuance of a Program Announcement on October 7, 2005 to solicit electric lawnmower vendors for the 2006 Lawnmower Exchange Program. The proposals for both funding opportunities have been reviewed. This action is to (1) fund four AQIP projects in an amount not to exceed $1,097,606; and (2) to award a contract to Neuton, Inc. to conduct the Lawnmower Exchange Program in an amount not to exceed $740,000 to exchange up to 4,000 gasoline powered lawnmowers with cordless electric lawnmowers; and (3) to allocate $116,000 from the AQIP Fund to administer the Lawnmower Exchange Program. The rec-ommended actions will exceed the AQIP emission reduction targets for the first half of 2005.

COMMITTEE:

Mobile Source, February 24, 2006, Recommended for Approval

RECOMMENDED ACTIONS:

1.                  Authorize the Chairman to execute the following contracts for a total amount not to exceed $1,097,606 from the Rule 2202 AQIP Special Revenue Fund.

a.         A contract with Connolly-Pacific Company to repower two marine vessels with seven new engines in an amount not to exceed $355,512; and a maximum of $4,600 to install two global positioning systems (GPS) and/or data loggers.

b.         A contract with Karandan Enterprises to repower a loader and crushing plant with two new low-emission engines in an amount not to exceed $132,991.

c.         A contract with the Science and Technology Development Corporation (STDC) to generate emission reductions by scrapping old vehicles under Regulation XVI in an amount not to exceed $354,803.

d.         A contract with the Pick Your Part Auto Wrecking to generate emission reductions under Regulation XVI in an amount not to exceed $250,000.

2.         A contract with Neuton Lawnmower Company to purchase up to 4,000 electric lawnmowers and to conduct “Mow Down Air Pollution 2006” Lawnmower Exchange events in an amount not to exceed $740,000.

3.         Transfer $116,000 from the AQIP Special Revenue Fund to Science & Technology’s FY 2005-06 Budget, Services and Supplies Major Object to solicit outside business and organizational support to assist in implementing AQMD’s “Mow Down Air Pollution 2006” program.

 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Rule 2202 Air Quality Investment Program (AQIP) allows subject 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.  This Board letter contains a discussion regarding the disbursal of funds from the AQIP compliance option for the first three quarters of 2003.

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.

The first half of calendar year 2005 participation period ended on June 30, 2005 with 90 employers participating in the AQIP program.  The total amount of AQIP funds received during this period was $1,876,500, which includes both annual and triennial participants.  In addition, an amount of $481,983 is available from three withdrawn projects (Orange County and Quinn Shepherd for $261,094; City of Norwalk for $173,128; unused amount of $46,951 from the Lawnmower Exchange Events of 2005).  Board authorization at its November 4, 2005 Board meeting necessitated the use of $19,755 from this semi-annual period.  An additional amount of $190,724 is available from interest accrued in FY 2004-05.  Therefore, the total amount available for this quarter is $2,387,459 (see Attachment 1, Table 4).  Staff recommends that $1,953,606 be used to purchase emission reductions to satisfy the target for the first semiannual period of 2005.

Proposal Evaluation

During the bidding process for the first semiannual period of 2005, seven proposals were received requesting funds ranging from $113,131 to $1,419,210.  Attachment 2 gives a summary of emission reduction targets and the emission reduction credit balance.  Attachment 3 gives a summary of each proposal received and funds requested.   

According to the May 6, 2005 revision of the RFP, the proposals were divided into six different categories as listed in Attachment 4.  This attachment provides an overall summary of the proposals by category, listing the proposals received, funds requested, total proposal costs, and emission reductions expected from each proposal.

All proposals were reviewed and scored based on the information in the proposal as submitted to the AQMD.  After the proposals were scored within their respective categories they were ranked by total score (as described in the RFP). 

Selection Criteria

Attachment 5 provides a summary of the proposal rankings.  After all the proposals were scored and ranked projects were selected from the highest scoring proposals with the specific goal of meeting the emission reduction targets for VOC, NOx, and CO, respectively.  Staff selected the highest ranking projects that would meet the one-year targets for all three pollutants.  As part of the selection process, staff based its selection on the scoring criteria outlined in the RFP.  Reasons for recommendations made are provided at the end of each proposal summary in Attachment 3.

The proposals were relatively ranked within each of the four categories (with the most cost-effective proposal receiving a score of 100) and all proposals were ranked by total score as provided in the RFP.  The top scoring proposals in three of the categories (Connolly-Pacific Co., Karandan Enterprises, and Science and Technology Development Corporation and Pick Your Part Auto Wrecking) were selected as described above to meet the targets of all three pollutants VOC, NOx and CO.  Only one proposal was received in the on-road category and automatically received a score of 100 since there are no other proposals to compare with in this category.  However, the proposal is not recommended for award since the proposal provided no emission reductions in VOC and CO.

The following AQIP proposals are recommended for approval (as detailed in Attachment 6):

Connolly-Pacific Co proposes to generate emission reductions by re-powering seven low emission main and auxiliary engines in a Derrick Barge and a Tugboat.  The cost-effectiveness of this proposal is $1.24 per pound.  (Recommended for funding; Ranked first in its category.)

Karandan Enterprises proposes to generate emission reductions by repowering a loader and a crushing plant with two new low-emission engines.  The cost-effectiveness of this proposal is $2.43 per pound.  (Recommended for funding; Ranked first in its category.)

Science and Technology Development Corporation proposes to generate emission reductions by scrapping old vehicles under Regulation XVI.  The cost-effectiveness of this proposal is $2.18 per pound.  (Recommended for partial funding; ranked first in its category.)

Pick Your Part Auto Wrecking proposes to generate emission reductions by scrapping old vehicles under Regulation XVI.  The cost-effectiveness of these proposals is $2.23 per pound under both options.  (Recommended for partial funding; ranked second in its category.)

Lawn Mower Exchange

Review of Proposals for 2006 Lawn Mower Program

A typical gasoline lawnmower used weekly can produce as much pollution in a year as 43 new cars driven 12,000 miles each.  For the past three years, the AQMD has conducted lawnmower exchange programs through which nearly 11,500 gasoline-powered lawn mowers were traded in for cordless, electric mowers that produce zero emissions.  The AQMD proposes to carry out a similar exchange program in 2006, with a goal of exchanging up to 4,000 gasoline mowers for electric mowers.

At its October, 2005 meeting, the Board approved release of a Program Announcement (PA #2006-08) to solicit bids from qualified manufacturers to produce and provide up to 4,000 cordless electric lawnmowers to be used for the AQMD’s 2006 Lawnmower Exchange Program.  Two bids were received by the specified deadline, one from Black & Decker and the other from Neuton, Inc.

A 3-member review panel evaluated both proposals based on the product specifications and cost information.  The following table summarizes the results of that evaluation, with check marks shown where one proposal clearly excelled over the other.

Summary of Review Panel Evaluations of Lawn Mower Proposals

The two products were rated equal in several respects, but the Neuton mower was rated higher by all the raters for a number of categories (shorter charging time, easily removable battery, lower cutting height, less weight.).  The Black & Decker mower was rated higher for cutting width (19” vs. 14”).

The three raters agreed that the Neuton proposal was clearly more cost-effective than the Black & Decker proposal.  Neuton discounted $114 off the suggested retail price (the Black & Decker discount was $49).  The AQMD intends to again offer the mowers to the public for $100 each.  Therefore, the cost to AQMD would be substantially lower for the Neuton mower compared to the Black & Decker mower.  Neuton also offered an additional $10/unit, up to a total of $40,000, to be used for advertising and promotion of the program.

Based on product specifications and cost-effectiveness, the review panel unanimously recommended using the Neuton lawn mower for the 2006 Lawn Mower Exchange Program. 

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was published in the following publications:

Additionally, potential bidders may have been 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 was 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).  Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Resource Impact

Total cost of expenditure for the proposed projects and implementation support shall not exceed $1,953,606 from the Rule 2202 Air Quality Investment Program Special Revenue Fund.

Attachment(s) (DOC 196 KB)

1.      AQIP Funding and Participation

2.      Summary of Emission Reduction Targets and Credit Balances

3.      Summary of AQIP Proposals Received

4.      Summary of Proposals by Type

5.      Summary of Proposal Ratings

6.      Recommendation for Funding

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