BOARD MEETING DATE: October 6, 2006
AGENDA NO. 8

Issue RFP for Rule 2202 Air Quality Investment Program and Issue Program Announcements for Electric Lawn Mower and Low Emission Leaf Blower Vendors

SYNOPSIS:

One of the compliance strategies under Rule 2202 allows employers to invest in the AQIP.  Monies received are placed in a restricted account to fund programs that result in equivalent emission reductions that would otherwise have been achieved by the participating employers.  This action is to release a new RFP to solicit proposals to achieve emission reduction targets. To follow up on the successful Lawn Mower Exchange and Leaf Blower Exchange Programs, staff proposes to offer similar incentive in the Spring 2007 to generate cost-effective emission reductions.  This action is to issue two separate program announcements to solicit competitive bids from manufacturers of cordless electric lawn mowers and low-emission leaf blowers in sufficient quantities at the lowest possible price.

COMMITTEE: 

Mobile Source, September 22, 2006, Recommended for Approval

RECOMMENDED ACTION:

1. Approve issuance of RFP# P-2007-13 to solicit proposals to achieve emission reduction targets set by Rule 2202 AQIP.
2. Approve issuance of Program Announcement and Application PA# 2007-03 for production of up to 4,000 electric lawn mowers for the Lawn Mower Exchange Incentive Program with an option to conduct the program one additional year.
3. Approve issuance of Program Announcement and Application PA # 2007-02 to identify potential manufacturers/suppliers of low-emission/low-noise backpack leaf blowers capable of providing up to 2,000 units.

Barry R. Wallerstein, D.Env
Executive Officer

Background

Rule 2202 Air Quality Investment Program (AQIP) allows affected 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.

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. 

Proposals

Rule 2202 AQIP

To determine qualified projects for funding under Rule 2202 AQIP, the Board previously approved an RFP that was released on a periodic basis.  Staff is proposing a revised RFP under Rule 2202 AQIP as described below.

Proposals will be scored collectively by overall cost-effectiveness for a combination of VOC, NOx, and CO emissions reductions and then divided into the following separate categories:

• Off-road diesel repowering
• Old-vehicle scrapping
• On-road alternative fuel projects
• Mobility enhancing services
• Marine vessel repowering
• Miscellaneous

Proposals will then be ranked by score within each category.  In order to meet the emission reduction targets for the three individual pollutants, proposals generating required emission reductions may be selected irrespective of their overall score.  For example, a project ranked third overall may not be selected if the next highest ranking project provides greater emission reductions to meet the needed targeted reductions for an individual pollutant.  As such, proposals from all categories may not be selected and the highest ranking proposals in each category may not necessarily be recommended for award, whereas more than one proposal may be chosen from a particular category.  This is because the overall cost-effectiveness is calculated based on a combination of three pollutants, whereas projects may be chosen to meet the emission reduction target for an individual pollutant.  The project selection will be based first on a combination of highest ranking proposals to meet the required VOC target.  The remaining project proposals that can provide the needed NOx emissions reductions will be selected next, followed by the selection of project proposals that generate the needed CO emission reductions

The proposals would require AQMD/CARB/U.S. EPA emission reduction quantification protocols.

Staff believes that a significant portion of the available funds should be allocated to on-road mobile source related projects since one of the primary objectives of Rule 2202 AQIP is to achieve equivalent emissions reductions in those areas where rideshare programs would have otherwise been implemented.  As such, at least 60 percent of the total available AQIP funds is proposed to be allocated to on-road mobile source projects including old-vehicle scrapping.  The remaining 40 percent will be disbursed among the four remaining categories with no minimum for any one category.  If there are insufficient on-road mobile source proposals or old-vehicle scrapping proposals that would satisfactorily achieve the total emission reduction target at the 60 percent funding minimum, Staff proposes that a greater number of projects from the other categories be selected (beyond the 40 percent funding level) in order to achieve the overall emission targets.

Lawn Mower Exchange Program

In Spring 2006, AQMD conducted seven lawn mower exchange events where operable gasoline powered lawn mowers were exchanged for zero emission cordless electric lawn mowers.  The program funded by the Rule 2202 AQIP, has helped mitigate a substantial amount of emissions.  Individuals exchanging their lawn mowers paid the participating retailer $100, inclusive of sales tax.  AQMD funds cover the difference minus the rebate offered by the manufacturer.  Due to the success of this program, staff believes additional events should be considered in spring 2007. 

The purpose of this Program Announcement is to solicit competitive proposals from qualified manufacturers/suppliers for the production and supply of cordless electric lawn mowers to be used in the lawn mower exchange program in the South Coast Air Basin.  The goal of this proposal is to identify potential manufacturers/suppliers and products for AQMD’s lawn mower exchange program at the lowest possible price.  Proposals from original equipment manufacturers (OEM)/suppliers are to include but not limited to the following:

• Detailed product specifications
• Manufacturers suggested retail price
• AQMD’s net price
• Supply commitment
• Lead time
• Details of assistance to be provided at the lawn mower exchange events.

AQMD staff will evaluate the proposals based on product specifications, availability, production capacity, the lead time, price of the product and the exchange event assistance capabilities of the contractor.

Leaf Blower Exchange Program

In spring of 2006, the AQMD conducted a leaf blower exchange program to encourage professional gardeners and landscapers operating within the AQMD’s 4-county jurisdiction to turn in their old, polluting backpack leaf blowers and purchase new, low-emission/low-noise leaf blowers at a reduced price.  The program was very successful, resulting in the exchange of 1,500 leaf blowers.  At that time, the make and model of the new leaf blowers was the only one certified by CARB to have emission levels below the “Blue Sky Series” voluntary standards.  The Blue Sky Series voluntary standards for Hydrocarbons and nitrogen oxides are set at a level that is 50% lower than the current emission standards for leaf blowers that qualify for sale in California.

The purpose of Program Announcement #2007-02 is to solicit competitive proposals from qualified contractors for the production and supply of between 1,000 and 2,000 low-emission/low-noise backpack leaf blowers for the AQMD’s 2007 Leaf Blower Exchange Program.  In addition to other criteria, to qualify for consideration, the proposed leaf blower must meet the CARB Blue Sky Series emission standards.

AQMD staff will evaluate the proposals based on, but not limited to, criteria including the CARB-certified emission levels of the engine, leaf blower noise levels, product specifications, availability, production capacity, lead time, price of the product, and the degree to which the contractor will provide additional services for advertising, organizing and conducting the exchange events.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ 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 RFP/RFQ will be 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/)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.

Resource Impact

Amount of funding will be determined after the selection of contractors from the submitted proposals.  Funding will be provided from the Rule 2202 AQIP.

Attachment(s)  (EXE 1385 kb)
1.   Program Announcement and Application #PA 2007-02 - Leaf Blower Exchange Program
2.   Program Announcement and Application #PA 2007-03 - Lawn Mower Exchange Program
3.   RFP# P2007-13 - Rule 2202-On-Road Motor Vehicle Mitigation Options