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

Execute and Amend Contracts for Technical Assistance for Advanced, Low- and Zero-Emission Mobile and Stationary Source Pollution Control Technologies Under the Clean Fuels Program and Carl Moyer Program, and Amend Contract to Conduct Additional Analysis Under MATES-III

SYNOPSIS:

On May 5, 2006, the Board approved release of an RFP to solicit proposals to provide technical assistance and public outreach support for advanced, low- and zero-emission mobile and stationary source pollution control technologies.  Eleven proposals were received and reviewed.  This action is to execute six and amend two contracts with technical experts to provide consultation services at a total cost not to exceed $320,000 from the Clean Fuels Program.  Further, this action is to execute three contracts and amend one with technical experts to provide consultation services at a total cost not to exceed $260,000 from the Carl Moyer Fund.  The final request is to amend a contract with Desert Research Institute to conduct additional particulate matter analyses under MATES III in an amount not to exceed $200,000.

COMMITTEE:

Technology, September 22, 2006, Recommended for Approval

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute contracts under the Clean Fuels Program with:

1. Burnett and Burnette for technical assistance with development, outreach, and commercialization of CNG engine technology in an amount not to exceed $40,000 from the Clean Fuels Fund;
2. Breakthrough Technologies for technical assistance with the development, outreach and commercialization of fuel cells and administrative coordination with federal energy and transportation departments in an amount not to exceed $40,000 from the Clean Fuels Fund;
3. Mr. Joseph Calhoun for technical assistance with the development, outreach, and commercialization of advanced, low-emission light-duty and heavy-duty vehicle technologies and coordination with state agencies in an amount not to exceed $20,000 from the Clean Fuels Fund;
4. Engine, Fuel and Emissions Engineering, Inc. (EF& EE) for technical assistance with the development, outreach, and commercialization of advanced heavy-duty and off-road technologies in an amount not to exceed $60,000 from the Clean Fuels Fund;
5. Tech Compass for technical assistance with the development, outreach, and commercialization of hydrogen and fuel cell technologies in an amount not to exceed $75,000 from the Clean Fuels Fund; and
6. TIAX LLC for technical assistance with the development, outreach, and commercialization of low-emission and alternative fuels technologies in an amount not to exceed $50,000 from the Clean Fuels Fund.

2. Authorize the Chairman to execute contracts under the Carl Moyer Program with:

1. Burnett and Burnette for technical expertise on the implementation and commercialization of CNG infrastructure within the AQMD’s jurisdiction in an amount not to exceed $60,000 from the Carl Moyer Program Fund, SB 1107 Account allocated by CARB under program outreach; 
2. Clean Fuels Connection to provide technical assistance with technology incentive programs by evaluating proposals for compliance with CARB guidelines in an amount not to exceed $125,000 from the Carl Moyer Program Fund, SB 1107 Account allocated by CARB under program outreach; and
3. TIAX LLC for expertise in evaluating project proposals for technology incentive programs in an amount not to exceed $50,000 from the Carl Moyer Program Fund, SB 1107 Account allocated by CARB under program outreach.

3. Authorize the Chairman to amend contracts under the Clean Fuels Program with:

1. Protium Energy to provide technical assistance with the evaluation, outreach, and commercialization of hydrogen infrastructure technologies in an amount not to exceed $20,000 from the Clean Fuels Fund; and
2. JME Inc. for technical assistance with energy storage and ultracapacitor technologies in an amount not to exceed $15,000 from the Clean Fuels Fund.

4. Authorize the Chairman to amend contracts under the Carl Moyer Program with Cindy Sullivan for technical assistance with technology incentive programs by evaluating and developing procedures for compliance with CARB guidelines in an amount not to exceed $25,000 from the Carl Moyer Program Fund, SB 1107 Account allocated by CARB under program outreach.
5. Transfer $200,000 from the Clean Fuels Fund to the FY 2006-2007 Science and Technology Advancement Budget, Professional and Special Services.
6. Authorize Chairman to amend contract with DRI for conducting additional MATES III sample analyses in an amount not to exceed $200,000 from the FY 2006-2007 Science and Technology Advancement Budget, Professional and Special Services.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMP is the comprehensive regional plan for attaining federal air quality standards in the South Coast Air Basin.  In addition to full implementation of current technologies and control methods, there is a need to further develop and promote technological breakthroughs.  Air quality projections indicate that the federal standards for ozone are not expected to be met without aggressive implementation of commercial technologies and accelerated development of new technologies.

The Technology Advancement Office administers two programs to accomplish these goals.  The Carl Moyer Program incentivizes users to implement the cleanest available technologies for various heavy-duty on- and off-road applications.  The Clean Fuels Program supports projects to research develop, demonstrate, and deploy technologies to accelerate commercialization of clean, new technologies.  Due to constant and rapid changes in technologies and the sheer breadth of the potential projects, staff occasionally requires input from experts and practitioners in the field to aid in selecting and establishing projects for the Carl Moyer Program and the Clean Fuels Program.

At its May 2006 meeting, the Board approved RFP #P2006-20 for technical assistance to the Technology Advancement program.  The purpose of that RFP was to update the list of qualified technical assistance contractors to ensure that the AQMD can obtain the best expertise available in the areas required by staff.  The RFP solicited statements of qualifications from individuals and organizations potentially capable of providing technical assistance in a variety of areas to support staff activities.  The RFP sought companies or individuals to provide assistance in preparation of AQMP control measures; technical assistance for feasibility studies of stationary and mobile emission control technologies; emissions assessment of new alternative-fuel technologies; evaluation of innovative emissions control systems; VOC control, and assessment of economic, regulatory and technical barriers to the commercialization of clean fuels and advanced technologies; and other activities as needed. 

Lastly, the Board approved on May 5, 2006 to provide additional Clean Fuels funds to conduct additional analysis of particulate air samples to develop a source profile for diesel combustion sources for the MATES-III.  Due to unforeseen delays, however, the contract amendment was not fully executed prior to the end of FY 2005-06 and the monies reverted back to the Clean Fuels Fund (Fund 31).  There is still a need to conduct the additional analysis.  As such, staff is requesting the Board’s approval to fund the additional analysis.

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, the Riverside County Press Enterprise newspapers and the California State Contracts Register to leverage the most cost-effective method of outreach to the entire South Coast Basin.

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.

Selection Process and Proposal

Eleven proposals were received in response to the RFP.  The proposals were reviewed and scored by four evaluators from the AQMD:  an Assistant Deputy Executive Officer, a Technology Demonstration Manager, a Technology Implementation Manager, and a Fleet Rules Implementation Manager.  The composition of the panel was three Asian-Pacific Islander and one Caucasian; four male.  The evaluation panel evaluated and scored each proposer based on the selection criteria outlined in the RFP, which encompassed level of experience, cost effectiveness, and availability.  Table 1 shows the technical scores from the evaluation panel for the eleven proposals.

Table 1.  Area of Expertise and Technical Scores for Proposers

The technical scores are based on the proposers’ expertise and experience.  Based on these factors, one of the eleven proposals did not receive the required minimum technical points (56) for this RFP and, therefore, was not considered further.

For all of the proposals that qualified, staff added the cost effectiveness and additional points.  Based on these scores and current needs to effectively implement the Clean Fuels and the Carl Moyer Programs, staff is recommending the funding levels for each of the proposers as shown in Table 2. 

Table 2.  Final Scores and Proposed Awards

* Contract amendments

At the time RFP #2006-20 was approved, $300,000 was requested to provide the technical expertise for the Clean Fuels Program in areas including, but not limited to, CNG, LNG and hydrogen infrastructure, biofuels, fuel cells, electric hybrid vehicles, renewable technologies, advanced combustion technologies, mobile source data compilation and analyses, and toxic air contaminants and their potential formation.  Given the quality of the expertise being offered, staff is proposing that eight of the proposals be awarded with a slightly higher cost not to exceed $320,000. 

In addition, since the time of the RFP release, it was determined that due to the expansion of the Carl Moyer Program, technical expertise is needed to assist staff with the review and selection of the proposals submitted and the followup inspections needed to ensure adherence to the Carl Moyer guidelines.  Therefore, additional funding of $260,000 is requested to assist staff with the incentive program implementation.

The following is a synopsis for each of the proposed contractors under the Clean Fuels and Carl Moyer Programs.

Proposed Awards for Clean Fuels Program

Staff is recommending that eight of the ten proposals be funded to provide technical assistance under the Clean Fuels Program at a cost not to exceed $320,000.

Burnett and Burnette will provide technical assistance with CNG engine technology and the development and commercialization of the CNG infrastructure in the amount not to exceed $40,000.  Currently, Burnett and Burnette has two contracts for a total of $90,000 from the Clean Fuels Fund of which one is recently executed to update and expand the school bus inventory within the AQMD’s jurisdiction and the other, which is for technical assistance, is almost depleted.  Mr. Herb Burnett has worked extensively with vehicle manufacturers and conversion companies in the penetration of CNG vehicles.  

Breakthrough Technologies will provide expertise with federal funding allocations, fuel cell technology and administrative coordination with federal agencies, including U.S. Department of Energy (DOE) and U.S. Department of Transportation, with funding in an amount not to exceed $40,000.  Breakthrough Technologies currently has a contract in the amount of $40,000 from the Clean Fuels Fund, of which a significant amount has been expended on current task orders.  Mr. Robert Rose has provided specialized support to the AQMD to with his technical expertise in commercialization of fuel cells and other low- and zero-emission technologies.  Mr. Rose is the founding Executive Director of the U.S. Fuel Cell Council and Executive Director of Breakthrough Technologies Institute.

Mr. Joseph Calhoun will provide technical expertise in the areas of light-duty and heavy-duty vehicles, off-road vehicles and equipment, and hybrid-electric vehicle technologies in an amount not to exceed $20,000.  Mr. Calhoun currently has a contract in the amount of $40,000 from the Clean Fuels Fund.  Mr. Calhoun is a registered professional engineer with over 48 years of air quality experience, specifically 19 years with General Motors where he was responsible for environmental activities in California and supervision the vehicle certification testing.  Most notably, Mr. Calhoun served for ten years as the Automotive Engineering Member of the CARB Governing Board.  Mr. Calhoun will provide high-level coordination and strategy insight for interactions with the state agencies as related to technical issues.

Engine, Fuel, and Emissions Engineering, Inc. (EF& EE) will provide technical expertise for natural gas engine technology, with funding in an amount not to exceed $60,000.  EF& EE currently has a contract with the AQMD in the amount of $170,000 from the Clean Fuels Fund, the STA budget and the Advanced Technology, Outreach, and Education Fund.  Mr. Christopher Weaver, the firm’s president, brings over 22 years of experience in the areas of internal combustion engine technology, fuels, combustion, and emission controls. Mr. Weaver will provide expertise with the measurement and control of fine particulate emissions from diesel vehicles; emission measurements and control technology for trucks, buses, railway locomotives, and other heavy-duty diesel vehicles; natural gas, and other " clean" fuels for vehicles. Mr. Weaver also has experience and can provide assistance with environmental economics, cost-effectiveness and policy analyses.

JME, Inc. will provide technical expertise in the areas of energy storage devices and ultracapacitors in an amount not to exceed $15,000.  JME has an existing contract for $10,000, but due to the increased attention to hybrid electric vehicles and the various storage technologies, staff anticipates a greater need for technical expertise in ultracapacitors.  The principal investigator for JME is Dr. John Miller, who has over 20 years experience in electrochemical capacitors and is a world recognized leader in capacitor applications, testing, and reliability studies.  Dr. Miller founded JME in 1989 and was previously a researcher at Standard Oil of Ohio, the University of Rochester, and Los Alamos National Laboratory.

Protium Energy Technologies will provide technical expertise in the areas of hydrogen technologies and infrastructure development in an amount not to exceed $20,000.  Protium Energy has an existing contract for $40,000 with a balance of $15,714.  This augmentation will allow principal, Dr. Venki Raman, to continue assisting staff in the review and analysis of hydrogen infrastructure technologies to be implemented in the South Coast Basin.  Dr. Raman has been involved in developing and managing hydrogen energy products since 1991.  He served on the Board of Directors of the National Hydrogen Association until 2004 and on the 1995 AQMD Fuel Cell Implementation Task Force.  Dr. Raman also helped DOE develop the U.S. Hydrogen Roadmap and formulate research and development plans for hydrogen generation and delivery.

Tech Compass will provide technical assistance in the areas of fuel cell technology and hydrogen infrastructure development in an amount not to exceed $75,000.  Mr. Andy Abele has over 26 years of experience in bringing advanced environmental, energy, and alternative propulsion technologies from the laboratory to commercialization.  Mr. Abele worked for the AQMD 11 years on low- and zero-emission technologies for light-, medium-, and heavy-duty vehicles prior to working for Quantum Fuel Systems Technologies.  In his capacity at Quantum, Mr. Abele was the Executive Director of Strategic Development and established a successful hydrogen and fuel cell demonstration program with GM and the military.

TIAX, LLC will provide technical assistance for low-emission and alternative fuels technologies in an amount not to exceed $50,000 from the Clean Fuels Fund.  Currently, TIAX, LLC has three contracts for a total of $160,000 from the Clean Fuels Fund of which only a small amount of funds on one contract have not been expended.  Mr. Jon Leonard, TIAX Project Manager, has over 24 years experience with low- and zero-emission mobile source technologies, emissions testing, and alternative fuel vehicles. 

Proposed Awards for the Carl Moyer Program

Staff is recommending that four proposals be funded to provide assistance under the Carl Moyer Program at a cost not to exceed $260,000.

Burnett and Burnette will also provide technical assistance with CNG infrastructure inspections and evaluations in an amount not to exceed $60,000 for the Carl Moyer Program.  Mr. Herb Burnett has been involved with internal combustion engines and retail facilities for aviation, marine and vehicular fueling facilities for over 20 years.  He worked extensively with vehicle manufacturers and conversion companies in the implementation of CNG vehicles.  

Clean Fuel Connection, Inc. will provide technical assistance for the incentive program implementation in an amount not to exceed $125,000.  Clean Fuel Connection, Inc. currently has two contracts for a total of $208,000 from the Clean Fuels Fund (one is a technical assistance contract which has significant amount expended on current task orders and the other is for replacement of public EV charging equipment).  For this contract, Clean Fuel Connection, Inc. will assist the staff in project cost-effectiveness calculations and feasibility evaluations.  Ms. Enid Joffe (principal) and Ms. Lauren Dunlap have provided technical, policy and assessment assistance for the Carl Moyer program for the past three years.  Both Ms. Joffee and Ms. Dunlap are knowledgeable in heavy-duty vehicle engine alternative and electric-hybrid technologies.

Ms. Cindy Sullivan will provide technical expertise with the development and implementation of incentive program policy and procedural guidelines in an amount not to exceed $25,000.  Ms. Sullivan has an existing contract of $75,000 with a balance of $51,923; this augmentation will allow Ms. Sullivan to continue working with staff to implement the new policy and procedural guidelines for the expanded Carl Moyer Program.  Ms. Sullivan has in-depth experience in alternative fuel heavy-duty engine technology.  She was the Carl Moyer Program manager for AQMD and CARB and is very familiar with the program requirements.

TIAX, LLC will also provide technical assistance for commercial low-emission and alternative fuels technologies in an amount not to exceed $50,000 from the Carl Moyer Fund.  Mr. Jon Leonard, TIAX Project Manager, is knowledgeable in heavy-duty vehicle control technologies; off-road vehicles and equipment; and state and federal programs, policies, and regulations regarding off-road and alternative vehicles. 

Proposed Additional MATES-III Analyses

The final recommended action is to fund additional analyses for MATES-III by amending an existing contract with the Desert Research Institute (DRI).  This action was previously approved by the Governing Board on May 5, 2006 and intended to utilize Clean Fuel funds, to conduct more comprehensive analysis of particulate air samples to develop a source profile for diesel combustion sources.  Due to unforeseen delays, however, the contract amendment was not executed prior to the end of FY 2005-06 and the monies reverted back to the Clean Fuels Fund (Fund 31).  The current request is to transfer $200,000 from the Clean Fuels fund to the Science and Technology Advancement FY 2006-07 Budget, Professional and Special Services account and execute a contract amendment with DRI to conduct the additional analysis.

Resource Impacts

The proposed awards are included in the March 2006 Technology Advancement Office Clean Fuels Program/2005 Annual Report and 2006 Plan Update under Technology Transfer and Assessment, Assessment and Technical Support of Advanced Technologies and Information Dissemination and Support for Implementation of Various Clean Fuels Vehicle Incentive Programs.  The proposed budget provided in the 2006 Plan for these program elements is $900,000.

Sufficient funds are available from the Clean Fuels Program Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program, to cover the proposed $320,000 for outside technical assistance and $200,000 to cover the additional particulate sample analysis under MATES-III.  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.

Sufficient funds are available the Carl Moyer Fund and the total cost for these proposed awards shall not exceed $260,000.