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

Recognize Funds from CARB and Execute Contracts to Re-power Construction Equipment Under Carl Moyer Multi-District Program, and Execute Contracts with Interest Funds from The Carl Moyer Program Fund

SYNOPSIS:

In June 2005, CARB allocated $1,623,926 to the AQMD for construction equipment re-powering projects under the Carl Moyer Multi-District Program. This action is to recognize $1,623,926 from CARB under this program, and to execute contracts with Peed Equipment and Sukut Equipment in the amounts not to exceed $860,000 and $763,926 respectively, from the Carl Moyer Program Fund Account SB 1107.  This action is also to execute contracts from the back-up list of unfunded projects, originally approved by the Board on July 7, 2006, with any interest funds available from the Carl Moyer Program Fund.

COMMITTEE:

Technology, July 28, 2006, Recommended for Approval

RECOMMENDED ACTIONS:

1. Recognize $1,623,926 from CARB under the Carl Moyer Multi-District Program, and place the funds in the Carl Moyer Program Fund Account SB 1107.
2. Authorize the Chairman to execute a contract with Peed Equipment to re-power four dual engine diesel scrapers in an amount not to exceed $860,000 from the Carl Moyer Program Fund Account SB 1107.
3. Authorize the Chairman to execute a contract with Sukut Equipment to re-power six diesel rock trucks in an amount not to exceed $763,926 from the Carl Moyer Program Fund Account SB 1107.
4. Authorize the Chairman to execute contracts from the back-up list of unfunded projects originally approved by the Board on July 7, 2006, (Agenda No. 38, Attachment 1) with any interest funds available from the Carl Moyer Program Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 2004, the Governor signed SB 1107 and AB 923, providing a significant source of long-term funding for the expanded Carl Moyer Program.  CARB administers ten percent of the funds generated under SB 1107 for multi-district projects annually.

In June 2006, CARB allocated $1,623,926 to the AQMD to execute contracts for projects that CARB has evaluated and selected for awards under the FY 2005-06 Carl Moyer Multi-District Program.

Proposal

This action is to recognize $1,623,926 from CARB under the Carl Moyer Multi-District Program for FY 2005-06, and place these funds in the Carl Moyer Program Fund Account SB 1107.  This action is also to execute contracts with Peed Equipment to re-power four dual engine diesel scrapers and with Sukut Equipment to re-power six diesel rock trucks in the amounts not to exceed $860,000 and $763,926 respectively, from the Carl Moyer Program Fund Account SB 1107.  These projects have been selected by CARB through a competitive public solicitation process.

The combined estimated emission reductions from these projects will be 90 tons/yr NOx, 3.3 tons/yr PM, and 11.2 tons/yr VOC.  Per CARB’s Carl Moyer Program guidelines, all the projects must be completed and in operation by June 30, 2008.

Carl Moyer Program Back-Up Projects

At its July 7, 2006 meeting, the Board approved the selection of projects and execution of contracts from a back-up list of unfunded projects under RFP #P2006-01 (Agenda No. 38, Attachment 1), in case of availability of additional turn-back funds under the Carl Moyer Program.  Staff proposes the Board’s approval for utilizing the same back-up list to fund projects with any interest funds available from the Carl Moyer Program Fund.

Benefits to AQMD

The successful implementation of these projects will reduce NO_x, PM, and VOC emissions from construction equipment in the South Coast Air Basin.  These projects will also achieve concurrent emission reductions of air toxic compounds.  Administration of this CARB program at the local level will provide greater certainty and assurance that emission reductions will be achieved.

Resource Impacts

Total cost of the proposed projects shall not exceed $1,623,926 from the Carl Moyer Program Fund Account SB 1107.