BOARD MEETING DATE: September 8, 2006
AGENDA NO. 34

Mobile Source Air Pollution Reduction Review Committee

SYNOPSIS:

Below is a summary of key issues addressed at the MSRC’s regular August 17, 2006 meeting. The MSRC next meeting is Thursday, September 21, 2006, at 2:00 p.m. in Room CC8.

RECOMMENDED ACTION:

Receive and file.

Michael D. Antonovich
AQMD Representative on MSRC

Minutes

Minutes from the June 22, 2006 meeting were unanimously approved. They are attached for your information (Attachment 1).

CNG School Bus Incentives for Public Schools

The FY 2005-06 Work Program included $2 million in Phase I and $2 million in Phase II for CNG school bus incentives. The incentives are implemented through contracts with A-Z Bus Sales, California Bus Sales, and BusWest, which were vendors previously qualified under a Request for Quotes when the MSRC initially implemented the program. Phase I funds were fully expended already. At its August 17, 2006 meeting the MSRC awarded an additional $110,000 to A-Z Bus Sales, which had already expended the $1,275,000 of its existing contract value. The additional monies will provide incentive funding for one full-size CNG bus for Certified Transportation and for two smaller CNG buses for Menifee Unified School District. Also at its August 17, 2006 meeting the MSRC awarded an additional $420,000 to BusWest, which had already expended the $1,680,000 of its existing contract value. The additional monies to BusWest will provide incentive funding for seven full-size CNG buses to Student Transportation of America. The remaining $50,000 in Phase II was not allocated since the MSRC had at the same meeting allocated additional funding for CNG school buses in its FY 2006-07 Work Program. The AQMD Board is scheduled to consider these awards on September 8, 2006.

FY 2005-06 Work Program Contract Infrastructure Awards

The FY 2005-06 Work Program included $2.5 million for alternative fuel infrastructure, providing funds for new and upgraded or expanded stations as well as facility modifications. New publicly accessible stations are eligible for 50 percent of project costs up to a maximum of $250,000 to $350,000 depending upon station type. New limited access stations are eligible for 25 percent of project costs up to a maximum of $150,000.  Upgrades/expansions are eligible for 50 percent of costs up to $150,000 for public access and 25 percent up to $75,000 for limited access.  Maintenance facility modifications are eligible for 50 percent of project costs up to $50,000.  The MSRC’s award combined with any AQMD cost-sharing may not exceed 50 percent of the total project costs.  The maximum funding for any one entity cannot exceed 60 percent of the total funding in this work program category. The Program Announcement’s extended application period was October 4, 2005 through June 30, 2006. Although the MSRC and AQMD Board already approved eight applications totaling $1,733,981 under this Program, 13 new applications were received by the closing date of the PA. At its August 17, 2006 meeting, the MSRC awarded contracts totaling $1,043,750 to seven more applicants. Since the allocation exceeded the $766,019 remaining from the original work program allocation, the MSRC approved an additional $277,731 from unencumbered carryover funds to fund all eligible projects recommended by its Technical Advisor Committee. The AQMD Board is scheduled to consider these awards on September 8, 2006.

FY 2006-07 Work Program Contract Awards and Options

In the last few months the MSRC has been brainstorming with its Technical Advisory Committee to develop the FY 2006-06 AB 2766 Discretionary Fund Work Program. At its August 17, 2006 meeting, the MSRC conceptually approved funding categories for a two-phase, $12.7 million FY 2006-07 Work Program.

Phase I allocates $11.2 million for the following elements: Alternative Fuel Infrastructure, CNG School Bus Incentives, Off-Road Diesel Exhaust Aftertreatment Retrofits, Transit Bus Incentives for Natural Gas Engines Meeting 2010 Standards, Advanced CNG Class 8 Goods Movement Engine Incentives, Bike Metro Upgrade and Migration; and Exercising the Option for Additional Programmatic Outreach.

Phase II currently allocates $1.5 million for a Natural Gas Freeway Service Patrol Demonstration and a “511” Regional Awareness Campaign. Other elements may be developed along with additional funding. One of those elements may be a Local Government Match Program, which has traditionally provided funding to local governments for heavy-duty alternative fuel vehicles and infrastructure. As part of Phase II of the FY 2005-06 Work Program, the MSRC allocated $1 million for a follow-on Local Government Match Program and the Program Announcement is open until October 6, 2006.

The MSRC’s Technical Advisory Committee will reconvene its subcommittees to begin developing specific parameters of these elements and solicitations or sole-source awards to implement them, with the exception of two categories that the MSRC specifically approved for immediate action.

First, the MSRC decided to offer CNG school bus incentives to both public school districts and private pupil transportation providers. Although the MSRC plans to re-evaluate how incentives are currently offered to public school districts, at its August 17, 2006 meeting, the MSRC approved an allocation of $2 million for CNG school bus incentives for private pupil transportation providers. A private pupil transportation provider will apply for incentives, execute participant agreements, and the MSRC will fund incentives up to the amount necessary to ensure compliance with Rule 1195. This will help ensure fewer diesel school buses are put on the roads due to lack of incentive funding because the incentive will go directly to the private pupil transportation provider. This arrangement will also allow the private pupil transportation providers to work directly with school bus manufacturers and potentially leverage better prices.

Second, the MSRC retains The Better World Group to provide programmatic outreach services. The Better World Group contract included three options to extend, the first two of which have been exercised. At its August 17, 2006 meeting, the MSRC chose to exercise the third and final option and added $50,930 to fund services for FY 2006-07.

The AQMD Board is scheduled to consider these two allocations/awards on September 8, 2006.

Received and Approved Final Reports

The MSRC unanimously received and approved three final reports at its August 17, 2006 meeting, as follows:

1. Pacific Coast Sightseeing Contract #AB00004, which provided $596,700 toward the purchase of 19 LPG transit buses;
2. Riverside Transit Agency Contract #MS03042, which provided $100,000 towards construction of a CNG refueling station; and
3. Whittier Union High School District Contract #MS05043, which provided $15,921 towards for CNG station upgrade.

All final reports are filed in the AQMD's library and a two-page summary of each closed project can be viewed in the electronic library on the MSRC's website. It is anticipated that in the future the MSRC’s website, http://www.cleantransportationfunding.org/, will include complete final reports in its electronic library.

Contract Modification Requests

At its August 17, 2006 meeting, the MSRC considered eight contract modification requests and took unanimous action, as follows:

1. For Cathedral City, approval of a new/replacement to complete the work originally intended under Contract #MS03032, which expired before a term extension could be executed;
2. For City of Inglewood Contract #ML04018, which provided $312,500 towards the purchase of give heavy-duty CNG vehicles and installation of a CNG refueling station, approval of a one-year contract term extension (in addition to the two-month administrative extension in progress);
3. For City of La Canada Flintridge Contract #ML05023, which provided $20,000 towards the purchase of one CNG bus, approval of a one-year contract term extension;
4. For Downs Commercial Fueling Contract #MS04052, which provided $250,000 for construction of a CNG refueling station in Temecula, approval to downsize the dispenser size;
5. For City of La Verne Contract #ML04019, which provides $206,200 towards the purchase of three medium- and one heavy-duty CNG vehicles and construction of a CNG refueling station, approval to downsize to a smaller, time-fill facility, reduce the contract value by $85, 941, and of a one-year contract term extension;
6. For Coachella Valley Association of Governments Contract #MS03025, approval of a one-year contract term extension (in addition to the two-month administrative extension in progress);
7. For TransVironmental Solutions (TVS) Contract #MS03038, which provides $615,200 to implement a Regional Vanpool Incentive Program, approval to release a portion of the retention; and
8. For City of Long Beach Pending Contract #PT05058, which provides $144,000 for eight diesel exhaust after-treatment retrofits, approval to remove July 31, 2006 deadline for invoice submission and include a pre-contract cost clause.

Contract Administrator’s Report

The MSRC's AB 2766 Contract Administrator provides a written status report on all open contracts from FY 1999-00 through the present. This Contract Administrator’s Report for the month of August is attached for your information.

Attachments (EXE 310kb)
1) Approved June 22, 2006 Minutes
2) Contract Administrator’s Report