BOARD MEETING DATE: October 6, 2006
AGENDA NO. 4

Execute Contracts for FY 2005-06 Carl Moyer Memorial Air Quality Standards Attainment Program, Modify a Previous Award, and Re-issue Program Announcement for the Agricultural Assistance Part of the Carl Moyer Program

SYNOPSIS:

On May 5, 2006, proposals were received in response to the RFP that was issued for the FY 2005-06 Carl Moyer Air Quality Standards Attainment Program.  This action is to execute new contracts under the Carl Moyer Program with up to $30,516,025 in funding, comprised of up to $21,866,109 from the Carl Moyer Program Fund SB 1107 Account, up to $4,841,853 from the Carl Moyer Program Fund AB923 Account, and $3,808,063 interest monies available in this fund.  This action is also to modify a previous award, and to re-issue the agricultural assistance portion of the last Carl Moyer Program Announcement.

COMMITTEE:

Technology, September 22, 2006, Recommended for Approval; Mobile Source, September 22, 2206.  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 with no approval or disapproval recommendation from the Committee.

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute the following contracts for the FY 2005-06 Carl Moyer Program with funding from SB 1107 and AB923:
   1. A contract with City of San Bernardino for the purchase of 20 new LNG refuse vehicles in an amount not to exceed $492,383 from the Carl Moyer Program Fund SB 1107 Account.
   2. A contract with Burrtec for the purchase of 50 new LNG refuse vehicles in an amount not to exceed $1,402,300 from the Carl Moyer Program Fund SB 1107 Account.
   3. A contract with City of Burbank for the purchase of 5 new CNG refuse vehicles in an amount not to exceed $94,603 from the Carl Moyer Program Fund AB923 Account.
   4. A contract with Reliable Office Solutions for the purchase of 5 new CNG service trucks in an amount not to exceed $90,000 from the Carl Moyer Program Fund SB 1107 Account.
   5. A contract with R.F. Dickson for the purchase of 10 new CNG street sweepers in an amount not to exceed $851,856 from the Carl Moyer Program Fund SB 1107 Account.
   6. A contract with Clean Street for the purchase of 10 new CNG street sweepers in an amount not to exceed $820,250 from the Carl Moyer Program Fund AB923 Account, including $562,257 interest accumulated in that account.
   7. A contract with Southern Counties Express for the purchase of 50 new LNG tractor trucks in an amount not to exceed $4,000,000 from the Carl Moyer Program Fund AB923 Account.
   8. A contract with U.S. Air Conditioning Distributors for the purchase of 10 new CNG stakebed trucks in an amount not to exceed $388,665 from the Carl Moyer Program Fund SB 1107 Account.
   9. A contract with Clean Fuels LLC for the purchase of 1 new LNG transport truck in an amount not to exceed $51,635 from the Carl Moyer Program Fund SB 1107 Account.
   10. A contract with Pacific Harbor Line for the purchase of 3 diesel switcher locomotives in an amount not to exceed $3,680,000 from the Carl Moyer Program Fund SB 1107 Account.
   11. A contract with Amazing Coachella for the electric repower of 2 agricultural pump engines in an amount not to exceed $117,000 from the Carl Moyer Program Fund AB923 Account.
   12. A contract with Crystal Organic Farms for the electric repower of 5 agricultural pump engines in an amount not to exceed $305,705 from the Carl Moyer Program Fund AB923 Account.
   13. A contract with Southern California Edison for the purchase of 20 new electric forklifts in an amount not to exceed $228,026 from the Carl Moyer Program Fund SB 1107 Account.
   14. A contract with Cerenzia Foods for the retrofit of 6 heavy-duty diesel trucks with Level 3 traps and 1 heavy-duty diesel truck with an oxidation catalyst in an amount not to exceed $60,200 from the Carl Moyer Program Fund SB 1107 Account.
   15. A contract with Republic Services – Long Beach for the retrofit of 70 diesel refuse trucks in an amount not to exceed $674,610 from the Carl Moyer Program Fund SB 1107 Account.
   16. A contract with Republic Services – Atlas Chatsworth for the retrofit of 12 diesel refuse trucks in an amount not to exceed $127,722 from the Carl Moyer Program Fund SB 1107 Account.
   17. A contract with Republic Services – American Gardena for the retrofit of 11 diesel refuse trucks in an amount not to exceed $93,831 from the Carl Moyer Program Fund SB 1107 Account.
   18. A contract with Republic Services – Anaheim for the retrofit of 59 diesel refuse trucks in an amount not to exceed $503,073 from the Carl Moyer Program Fund SB 1107 Account.
   19. A contract with City of Upland Public Works for the retrofit of 1 diesel sewer cleaning truck in an amount not to exceed $2,389 from the Carl Moyer Program Fund SB 1107 Account.
   20. A contract with Henkels & McCoy for the retrofit of 88 heavy-duty diesel trucks in an amount not to exceed $365,630 from the Carl Moyer Program Fund SB 1107 Account.
   21. A contract with Santa Monica Big Blue Bus for the retrofit of 647 diesel transit buses in an amount not to exceed $577,965 from the Carl Moyer Program Fund SB 1107 Account.
   22. A contract with Tamco Steel for the repower of 7 diesel loaders in an amount not to exceed $265,613 from the Carl Moyer Program Fund SB 1107 Account.
   23. A contract with Ameron International for the repower of 3 diesel pipe hoists in an amount not to exceed $183,771 from the Carl Moyer Program Fund SB 1107 Account.
   24. A contract with Fontana Steel for the repower of 2 diesel loaders in an amount not to exceed $66,552 from the Carl Moyer Program Fund AB 923 Account.
   25. A contract with Pacific Independent Equipment for the repower of 4 articulated diesel trucks in an amount not to exceed $170,701 from the Carl Moyer Program Fund SB 1107 Account.
   26. A contract with Peed Equipment for the repower of 8 dual engine diesel scrapers in an amount not to exceed $1,720,000 from the Carl Moyer Program Fund SB 1107 Account.
   27. A contract with Burrtec Waste Industries – Mid-Valley Landfill for the repower of 1 grader, 3 compactors, 1 loader, 2 dozers, and 1 single engine scraper in an amount not to exceed $525,897 from the Carl Moyer Program Fund SB 1107 Account.
   28. A contract with Burrtec Waste Industries – Colton Landfill for the repower of 1 dozer, 1 grader, and 1 compactor in an amount not to exceed $172,363 from the Carl Moyer Program Fund SB 1107 Account.
   29. A contract with Burrtec Waste Industries – San Timoteo Landfill for the repower of 1 dozer, and 1 compactor in an amount not to exceed $158,590 from the Carl Moyer Program Fund SB 1107 Account.
   30. A contract with Yeager Skanska for the repower of 2 single engine water pulls, and 1 dual engine water pull in an amount not to exceed $361,691 from the Carl Moyer Program Fund SB 1107 Account.
   31. A contract with Robco Equipment Rental for the repower of 1 wheel dozer, and 4 wheel scrapers in an amount not to exceed $427,014 from the Carl Moyer Program Fund SB 1107 Account.
   32. A contract with Varner Construction for the repower of 14 dual engine diesel scrapers in an amount not to exceed $2,313,368 from the Carl Moyer Program Fund SB 1107 Account.
   33. A contract with Nuevo Engineering for the repower of 6 dual engine diesel scrapers in an amount not to exceed $773,463 from the Carl Moyer Program Fund SB 1107 Account.
   34. A contract with Mesa Contracting for the repower of 12 diesel wheel scrapers in an amount not to exceed $897,564 from the Carl Moyer Program Fund SB 1107 Account.
   35. A contract with Universal Studios for the repower of off-road people movers with 11 diesel engines in an amount not to exceed $166,094 from the Carl Moyer Program Fund SB 1107 Account.
   36. A contract with Sukut Equipment for the repower of 4 dual engine scrapers, 2 graders, and 7 dozers in an amount not to exceed $1,593,320 from the Carl Moyer Program Fund SB 1107 Account.
   37. A contract with Leko Construction for the repower of 1 single engine diesel scraper in an amount not to exceed $79,850 from the Carl Moyer Program Fund interest dollars.
   38. A contract with Rentrac for the repower of 1 dual engine diesel scraper in an amount not to exceed $184,286 from the Carl Moyer Program Fund SB 1107 Account.
   39. A contract with Jagur Tractor for the repower of 3 dual engine diesel scrapers in an amount not to exceed $671,451 from the Carl Moyer Program Fund SB 1107 Account.
   40. A contract with Dennis McCoy & Sons for the repower of 17 single engine diesel scrapers in an amount not to exceed $1,677,972 from the Carl Moyer Program Fund SB 1107 Account.
   41. A contract with Stice Company for the repower of 4 single engine and 6 dual engine diesel scrapers in an amount not to exceed $1,225,716 from the Carl Moyer Program Fund interest dollars.
   42. A contract with Road Builders for the repower of 2 graders, 1 dual engine diesel scraper, and 1 excavator in an amount not to exceed $351,120 from the Carl Moyer Program Fund interest dollars.
   43. A contract with Reliable Wholesale Lumber for the repower of 8 lumber loaders in an amount not to exceed $254,192 from the Carl Moyer Program Fund interest dollars.
   44. A contract with TNT Grading for the repower of 1 tractor, 4 single engine, and 4 dual engine diesel scrapers in an amount not to exceed $1,034,454 from the Carl Moyer Program Fund interest dollars.
   45. A contract with Martinez Trucking for the repower of 2 diesel cargo handling equipment in the amounts of $49,460 from the Carl Moyer Program Fund interest dollars, and $41,461 from the Carl Moyer Program Fund SB 1107 Account, including $28,795 interest accumulated in that account.
   46. A contract with Moss Equipment for the repower of 3 single engine diesel scrapers in an amount not to exceed $222,219 from the Carl Moyer Program Fund interest dollars
2. Authorize the Chairman to execute contracts from the back-up list of unfunded projects as listed in Table 4 and pending approval from CARB, should additional funds become available from turn-back projects and interest funds.
3. Authorize the Chairman to modify the award to Pacific Harbor Lines for the repower of 9 diesel switcher locomotives in an amount not to exceed $1,203,000 from the Carl Moyer Program Fund AB 923 Account and $2,406,000 from the Carl Moyer Program Fund SB 1107 Account, to an award for 7 diesel switcher locomotives in an amount not to exceed $1,193,995 from the Carl Moyer Program Fund AB 923 Account and $2,406,000 from the Carl Moyer Program Fund SB 1107 Account.
4. Approve re-issuance of the Agricultural Assistance Portion of the Carl Moyer Program as Program Announcement #PA2007-04 originally issued on February 3, 2006 in an amount not to exceed $3,457,854.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Carl Moyer Memorial Air Quality Standards Attainment Program (CMP) provides funding on an incentive basis for the incremental cost of purchasing cleaner than required engines and equipment.  Eligible projects include cleaner on- and off-road, marine, locomotive, and agricultural engines, as well as forklifts, airport ground support equipment, and auxiliary power units.

This is the eighth year of the CMP and is the second year of the program with a long-term source of funding generated under SB 1107 and AB 923.  At its February 3, 2006 meeting, the Board approved the release of RFP #P2006-15 to solicit proposals for Year Eight of the Carl Moyer Program for approximately $30.1 million.  By the closing date of May 5, 2006, a total of 85 proposals were submitted requesting approximately $47.6 million in funding. 

CARB has allocated $35,366,250 under SB 1107 to the AQMD for the FY 2005-06 Carl Moyer Program.  Table 1 shows the total amount of funds currently available under SB 1107 and AB 923, in addition to remaining interest dollars generated in the Carl Moyer Program Fund that can be used to fund projects.

Table 1.  Carl Moyer Program Available Funds

Proposal

Carl Moyer Program

This action is to approve recommended projects with the Carl Moyer Program funds for FY 2005-06 under SB 1107 & AB 923, and with interest funds generated in the Carl Moyer Program Fund.  Awards using SB 1107 & AB 923 will not be commingled and will be allocated separately.

All the cost-effectiveness calculations are done according to CARB’s Carl Moyer Program guidelines released on January 6, 2006.  Funding eligibility of projects subject to CARB rules and compliance plans have been discussed with and approved by CARB staff.  Table 2 provides a detailed list of all the projects proposed for funding under SB 1107, AB 923, and interest earned dollars.

Total NOx and PM reductions from the recommended projects are approximately 1,049 tons/year and 36 tons/year, respectively.

Table 3 summarizes staff’s recommendation for awards in disproportionately impacted areas under the requirements of AB 1390.  The total amount of projects funded in disproportionately impacted areas is $18,739,520.  The total amount of projects funded solely based on cost-effectiveness is $11,776,496.  In summary, 61% of the projects are in disproportionately impacted areas.

In order to facilitate use of funds more expeditiously, staff recommends the Board’s approval to use the backup list of unfunded projects as set forth in Table 4, should additional funds become available from turn-back projects and interest funds.  The projects listed in Table 4 are still pending CARB’s approval and they will only be selected after CARB’s approval regarding their eligibility.

Award Modification

The request to modify the Pacific Harbor Line (PHL) award is a result of changes to program requirements between the old and new Carl Moyer Program guidelines and updated information provided by PHL.  During last year’s solicitation CARB released updated guidelines and the AQMD voluntarily utilized the new guidelines as soon as they became available.  Generally, this transition does not affect major changes in awards or program requirements.  However, during this round, CARB required that old locomotive engines be scrapped.  This requirement resulted in a significant cost to the applicant, which was not anticipated during the preparation of the application.  After meeting with CARB and AQMD staff, on July 14, 2006, an agreement was reached which meets the requirements of the program and results in significant emission reductions.  Based on CARB’s approval, the award is being reduced from 9 to 7 locomotives in exchange for destruction of the old locomotives.  As a result, the award amount will be reduced by $9,005.

Re-issue the Agricultural Assistance Portion of the Carl Moyer Program Announcement

At its February 4, 2005 meeting, the Board allocated $4 million for agricultural assistance projects from AB 923 funds generated till the end of CY 2006.  After closing of RFP #P2006-15 on May 5, 2006, and the award of all the eligible projects in this Board letter, there still remains $3,457,854 for agricultural assistance projects.  Staff therefore recommends the Board’s approval for re-issuance of the agricultural assistance portion of the program under Program Announcement #PA2007-04 as attached, making $3,457,854 available for these types of projects on a first come first served basis till the end of CY2006.

Funding Distribution

Funding for projects has been recommended based on the priorities of the “Carl Moyer Program Guidelines under SB 1107 & AB 923” adopted by the Board on July 8, 2005.  The priorities of the guideline are:

• Goods Movement (no less than 40%)
• Environmental Justice (no less than 50%)
• Cost Effectiveness
• Low Emission Engine/Vehicle Preference
• Early Commercialization of Advanced Technologies/Fuels
• Fleet Rules
• School Buses

Due to the types of applications received only about 15% of the recommended awards satisfy the Goods Movement objective.  However, with the Board’s allocation of $12 million for funding of heavy-duty LNG trucks at the ports and the Fleet Modernization Program this objective will be satisfied.

Approximately 61% of the award dollars are recommended for projects under the Environmental Justice category in disproportionately impacted (DI) areas as shown in Table 3.  In the evaluation process, staff recommended cost-effective proposals in the DI areas first with 50% of the available funding based on their ranking as described below.  The remaining qualified DI proposals with all other qualified proposals were then recommended for funding based on cost effectiveness only.

Disproportionate Impact (DI) Point Ranking

The requirements of AB 1390 are implemented according to the following criteria.

1. All projects must qualify for the Carl Moyer program by meeting the cost effectiveness limits established in the RFP.
2. All projects were evaluated according to the following criteria to qualify for funding under DI requirements:
   1. Poverty Level: All projects in areas where at least 10% of the population falls below the Federal poverty level based on the year 2000 census data, are eligible to be included in this category, and
   2. PM Exposure: All projects in areas with the highest 15% of PM concentration will be eligible to be ranked in this category.  The highest 15% of PM concentration level is 46 micrograms per cubic meter and above, on an annual average, or
   3. Air Toxics Exposure: All projects in areas with a cancer risk of 1,000 in a million and above (based on MATES II estimates) will be eligible to be ranked in this category.

The maximum score is comprised of 40 percent for poverty level, and 30 percent each for PM and toxic exposures.  Special circumstances exist in some areas, such as the Ports of Long Beach and Los Angeles.  Since there are no residents within the ports, poverty ranking could not be established.  In this case, the poverty ranking from the adjacent on-shore areas were extended to the port since these populated areas are directly impacted by port activities. 

Table 2:  Recommended Awards by Fund Account

Table 3:  Award Recommendations and Proposed Funding Distribution

Table 4: Backup List of Projects from RFP #P2006-15 Pending CARB Approval

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was 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 have been notified utilizing 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, the State of California Contracts Register website, 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.

Benefits to AQMD

AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low emission, alternative fuel technologies within its Technology Advancement Office.  The AQMD has also supported a number of activities directed to commercialization of low-emission alternative fuel technologies.  The successful implementation of the Carl Moyer Program is a direct result of these technology advancement activities.  The vehicles and equipment funded under this RFP will operate many years and will provide long-term emissions reductions.

Resource Impacts

Funding for Year Eight of the Carl Moyer Program shall not exceed $30,516,025 from the Carl Moyer Program Fund, comprised of:

$21,866,109              SB 1107 Account
$       28,795               SB 1107 Account interest
$  4,841,853              AB 923 Account
$     562,257              AB 923 Account interest
$  3,217,011              Carl Moyer Program Fund interest

There are sufficient funds in the Carl Moyer Program Fund from dollars collected under AB 923 and from funding to be received from CARB under SB 1107.

Attachment (DOC 1.5mb)

Agricultural Assistance Program Announcement #PA2007-04