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

Issue Program Announcement to Solicit Projects for Cleaner Construction Equipment Under the Carl Moyer Program, Correct Name of Existing Contract, and Allow Acceptance of 2006 and Newer Model Year Vehicle Applications Under the Fleet Modernization Program

SYNOPSIS:

CARB’s Carl Moyer Program guidelines have strict requirements for expenditure of funds for each year before allocation of new funds for each subsequent year.  This action is to issue a Program Announcement in an amount not to exceed $12 million from the Clean Fuels Fund and the Carl Moyer Program returned funds to fund cleaner construction equipment on a first come first served basis with the requirement that all equipment be installed by May 31, 2007, and be invoiced no later than June 30, 2007.  This action is also to correct the name of an awarded contract, and also to allow the purchase of 2006 and newer model year diesel vehicles rather than 2006 model years only under the Fleet Modernization Program.

COMMITTEE:

Technology, October 27, 2006, Recommended for Approval

RECOMMENDED ACTIONS:

1. Approve issuance of Program Announcement PA# 2007-07 in an amount not to exceed $12 million, to solicit off-road projects under the Carl Moyer Program on a first come, first served basis.
2. Approve correction of an error by changing the name of an awarded contract from its owner’s name of Kimberly Salas to its company name of Harbor Breeze Corporation under the Carl Moyer Program.
3. Approve revising the Fleet Modernization Program Announcement #PA2007-01, to accept applications for the purchase of model years 2006 and newer heavy-duty diesel vehicles rather than 2006 model year vehicles only, as newer models become available.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Carl Moyer Memorial Air Quality Standards Attainment Program (CMP) provides funds on an incentive basis for the incremental cost of purchasing cleaner than required engines and equipment.  CARB’s Carl Moyer Program guidelines have strict requirements for expenditure of funds for each year before allocation of new funds for each subsequent year.  Therefore, all outstanding funds must be expended no later than June 30, 2007 for the AQMD to receive future funding.  Due to the nature of the Carl Moyer Program, it is not unusual to have a quantity of returned funding during a program year.  The new requirement makes it difficult to conduct the program annually and meet the fund expenditure deadlines.  Therefore, creating a pool of completed backup projects funded with the Clean Fuels Fund, and the expedited reallocation of any Carl Moyer returned funds to complete new projects, will enable the AQMD to expend the program funding in a timely manner.

Proposal

Carl Moyer Program Announcement
This action is to issue a program announcement for heavy-duty off-road construction or similar equipment in an amount not to exceed $12 million comprised of Carl Moyer Program returned funds and up to $4 million from the Clean Fuels Fund.  The projects will be funded on a first come first served basis.  All the projects must have a maximum cost-effectiveness level of $5,000/ton for combined emission reductions of NOx + ROG +(20 x PM), and they must be installed by May 31, 2007, and be invoiced no later than June 30, 2007.  Under CARB’s Carl Moyer Program guidelines funding for each year must be expended within two years from the date of their allocation.  Due to the variety of projects with a short implementation time coupled with the fact that a number of project fundings are returned each year, it is imperative to implement a backup system in order to have a pool of available projects for substituting the returned projects in an expedited manner.  Projects funded with the Clean Fuels Fund will therefore be available to be substituted with any returned funds from incomplete projects from years 1 through 7.  The $4 million from the Clean Fuels Fund will then revert as returned funds from Moyer projects become available.  This will ensure the timely expenditure of all the Carl Moyer Program funds and will enable the AQMD to receive its fair share of funds from CARB each year.  At no time will more than $4 million from the Clean Fuels Fund be used to create a pool of backup projects.

Correction of a Carl Moyer Program Contract
This action is to approve correction of an error by changing the name of an earlier awarded contract from its owner’s name of Kimberly Salas to its company name of Harbor Breeze Corporation under the Carl Moyer Program.

Fleet Modernization Program Announcement #PA2007-01
This action is to approve revising the Fleet Modernization Program Announcement #PA2007-01, to accept applications for the purchase of model years 2006 and newer heavy-duty diesel vehicles rather than 2006 model year vehicles only, as newer models become available.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the Program Announcement and inviting bids will be published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may be notified utilizing AQMD’s own electronic listing of certified minority vendors.  Notice of the Program Announcement 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.

Benefits to AQMD

The successful implementation of the projects under this program announcement will help the AQMD retain its fair share of state emission reduction funding under the CMP, and significantly reduce NOx and PM10 emissions in a cost effective and expeditious manner. 

Resource Impacts

The total project cost of up to $12 million will be comprised of returned funds from the Carl Moyer Program Fund and up to $4 million from the Clean Fuels Fund.  The $4 million from the Clean Fuels Fund will serve as a pool of backup projects and will gradually be returned to the Clean Fuels Program Fund, as additional CMP returned funds become available.

The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies.  Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

Attachment (DOC 1.5mb)

Program Announcement #PA2007-07 – Carl Moyer Heavy-Duty Off-Road Construction Equipment Program