BOARD MEETING DATE: April 6, 2007
AGENDA NO. 12

PROPOSAL:

Transfer Clean Fuels Projects to the Carl Moyer Fund, Execute Construction Equipment and Truck Fleet Modernization Contracts for the Carl Moyer Memorial Air Quality Standards Attainment Program, and Amend a Contract to Install Global Positioning Systems on Construction Equipment

SYNOPSIS:

On November 3, 2006, the Board approved the release of a Program Announcement to fund cleaner construction equipment, in an amount not to exceed $12 million from Clean Fuels funds and Carl Moyer Program returned funds.  Also, on July 7, 2006, the Board approved the release of a Program Announcement to solicit projects at a cost not to exceed $6 million under the Carl Moyer Truck Fleet Modernization Program.  These projects are evaluated on a first-come first-served basis, and are submitted on a monthly basis to the Board for approval.  This action is to transfer $3,120,433 in Clean Fuels projects to the Carl Moyer Fund and to execute construction equipment and fleet modernization contracts under the Carl Moyer Program and the Clean Fuels Program funds.  This action is also to amend a contract to install global positioning systems on four construction equipment units in an amount not to exceed $10,000 from the Rule 1121 Emissions Mitigation Program Fund.

COMMITTEE:

Not Applicable

RECOMMENDED ACTIONS:

1. Transfer $3,120,433 in Clean Fuels funded projects approved in January 2007, as listed in Table 1, to the Carl Moyer Fund utilizing Carl Moyer Program turn-back funds as listed in Table 2 and $26,291 in Carl Moyer interest funds, and in turn make $3,094,142 available in Clean Fuels funds for a new set of Carl Moyer backup projects.
    
2. Authorize the Chairman to execute the following construction equipment contracts from the Clean Fuels Program Fund:

1. A contract with Sukut Equipment Company to repower five dual engine diesel scrapers in an amount not to exceed $1,025,000.
2. A contract with Post Company Grading to repower one diesel dozer in an amount not to exceed $92,244.
3. A contract with Leko Construction to repower one diesel tractor in an amount not to exceed $66,480.
4. A contract with Burrtec Waste Industries, San Timoteo Landfill, to repower one diesel scraper in an amount not to exceed $46,261.
5. A contract with Burrtec Waste Industries, Colton Landfill, to repower one diesel scraper in an amount not to exceed $66,485.
6. A contract with Mesa Contracting Company to repower twelve diesel scrapers and one diesel waterpull in an amount not to exceed $1,062,007.
7. A contract with TNT Grading to repower one single engine diesel scraper and four dual engine diesel scrapers in an amount not to exceed $735,665.
    

    C.    Authorize the Chairman to execute the following contracts under the Carl
           Moyer Fleet Modernization Program from the “Year 8” Carl Moyer
           Program Fund, SB 1107 Account:

1. A contract with Looney Bins, Inc. to replace two Class 8, 1983 model year diesel trucks (1982 engines) and two Class 8, 1987 model year diesel trucks (1986 engines) with four Class 8, 2008 model year diesel trucks (2007 engines) in an amount not to exceed $179,904.
2. A contract with Intravaia Rock and Sand, Inc. to replace one Class 8, 1980 model year diesel truck (1980 engine) and one Class 8, 1989 model year diesel truck (1989 engine) with two Class 8, 2007 model year diesel trucks (2007 engines) in an amount not to exceed $146,498.

    D.     Authorize the Chairman to amend an existing contract with MCM Construction, Inc.
            to increase the total contract funding by $10,000 to install global positioning
            systems (GPS) on four construction equipment units from the Rule 1121 Emissions
            Mitigation Program Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Construction Equipment Projects
The Carl Moyer Memorial Air Quality Standards Attainment Program (CMP) provides funds on an incentive basis for the incremental cost of purchasing cleaner than required engines and equipment.  CARB’s Carl Moyer Program guidelines have strict requirements for expenditure of funds for each year before allocation of new funds for each subsequent year.  On November 3, 2006, the Board approved the release of Program Announcement PA #2007-07, in an amount not to exceed $12 million comprised of up to $4 million from the Clean Fuels Fund and returned funds from the Carl Moyer Program to fund cleaner construction equipment on a first-come first-served basis.

In January 2007, Board approved the funding of construction equipment projects worth $3,998,787 using the Clean Fuels Fund as a backup on the basis that this amount would be available again for new projects by future Carl Moyer turn-back funds.  Currently, there is a sum of $3,094,142 in Carl Moyer turn-back funds, which would be used to pay for the projects funded in January with Clean Fuels funds.  In turn the Clean Fuels Fund will be used again to fund new construction projects.  Table 1 provides a list of Clean Fuels backup projects totaling $3,120,433 that will be transferred to the Carl Moyer fund, and Table 2 provides a detailed account of the Carl Moyer Program returned funds totaling $3,094,142.  The difference of $26,291 between Clean Fuels backup projects and the Carl Moyer turn-back funds will be paid for by interest monies accumulated in the Carl Moyer Program Fund.

Fleet Modernization Projects
In 2005, a heavy-duty on-road fleet modernization program category was added to the Carl Moyer Program.  The Fleet Modernization Program provides financial incentives to replace older high-polluting diesel trucks with newer lower emissions diesel and natural gas fueled trucks.  At its February 2006 meeting, the Board set aside $6 million from the “Year 8” funds for the Fleet Modernization Program.  In July 2006, AQMD released a Program Announcement, PA #2007-01, to solicit projects for this program.

Existing Contract Amendment
In December 2005, Board approved a contract with MCM Construction, Inc. to repower four off-road construction lattice boom crawlers for an amount not to exceed $279,808 under the Rule 1121 Emissions Mitigation Program.  In September 2006, AQMD decided to install GPS units on all four construction equipment units.

Table 1.  Clean Fuels Projects to Be Transferred to the Carl Moyer Fund

Table 2.  Detailed List of Carl Moyer Returned Funds

Proposal

Construction Equipment Projects
This action is to execute construction equipment contracts under the Carl Moyer Program in an amount not to exceed $3,094,192 from the Clean Fuels Fund.  Table 3 provides a detailed list of all the projects proposed for funding.  These projects were chosen based on the first-come first-served criterion and the cost effectiveness of NOx and PM reductions.

The amount of $3,094,142 in Carl Moyer turn-back funds will be used to replace funding of the projects approved in January 2007 as backup with Clean Fuels funds.  In turn, $3,094,142 from the Clean Fuels Fund will be used to fund the current proposed projects so that the “Year 7” Carl Moyer turn-back funds can be expended prior to the June 30, 2007 deadline.

Total NOx and PM reductions from the recommended projects are approximately 160 tons/year and 4 tons/year, respectively.  All the recommended award recipients have agreed to complete and submit invoices by June 30, 2008.

Fleet Modernization Projects
This action is also to execute heavy-duty truck fleet modernization contracts to replace pre-1990 trucks with model year 2006 and newer diesel trucks in an amount not to exceed $326,402.  Table 4 provides a detailed list of all the projects proposed for funding.  These projects were chosen based on the first-come first-served criterion and the cost effectiveness of NOx and PM reductions.  GPS units will be installed on these trucks under an AQMD contract with a GPS vendor, and the cost will be reimbursed by the Carl Moyer Program.

Total NOx and PM reductions from the recommended projects are approximately 3 tons/year and 0.3 tons/year, respectively.  All the recommended award recipients have agreed to complete the recommended projects by June 30, 2008.

Approximately 33% of the recommended award dollars for the construction projects and almost all the recommended projects under the Fleet Modernization Program are under the Environmental Justice (AB 1390) category in disproportionately impacted (DI) areas.

Existing Contract Amendment
This action is also to amend the MCM Construction, Inc. contract, to increase funding by $10,000 (from $279,808 to $289,808) to purchase and install four GPS units on construction equipment.

Table 3:  Proposed Construction Projects Funded By Clean Fuels Fund

Table 4: Proposed Heavy-Duty Truck Fleet Modernization Projects 

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 have been 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 is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Benefits to AQMD

The successful implementation of the proposed projects will help the AQMD significantly reduce NOx and PM10 emissions in a cost effective and expeditious manner.

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

The total project cost of up to $3,094,142 for the proposed construction equipment projects will be funded by monies restored to the Clean Fuels Fund from the transfer of $3,120,433 in projects to the Carl Moyer Fund.  The total project cost of $326,402 for the proposed truck fleet modernization projects will be funded from the “Year 8” Carl Moyer Program Fund SB 1107 Account.  The total contract amendment cost of $10,000 for four GPS units will be paid from the Rule 1121 Emissions Mitigation Program Fund.

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.