BOARD MEETING DATE: December 7, 2007
AGENDA NO. 3
PROPOSAL:
Execute Port LNG Truck Fleet Modernization Contract under the “Year 8” Carl Moyer Program
SYNOPSIS:
On February 3, 2006, the Board set aside $6 million to replace older heavy-duty diesel trucks at the Port of Los Angeles (POLA) and the Port of Long Beach (POLB) with new LNG trucks under the Carl Moyer fleet modernization program. On February 1, 2007, AQMD, POLA, and POLB released a joint RFP for a total amount of $22 million to solicit LNG truck projects. POLA and POLB contributed $8 million each towards this project. The RFP closed on March 30, 2007, and AQMD, POLA, and POLB jointly evaluated the applications which were received in response to the RFP. This action is to execute a contract with Southern Counties Express to replace 21 heavy-duty pre-1990 diesel trucks with 2006 model year LNG trucks in an amount not to exceed $3,024,000 from the “Year 8” Carl Moyer Program Fund SB 1107 Account.
COMMITTEE:
Technology, November 16, 2007. There being no quorum, Chairman Roy Wilson heard the agenda items as a committee of one. Chairman Wilson communicated his approval of staff recommendations and directed that the item be forwarded for Board consideration.
RECOMMENDED ACTIONS:
Authorize the Chairman to execute a contract with Southern Counties Express to replace 21 heavy-duty pre-1990 diesel trucks with 2006 model year LNG trucks in an amount not to exceed $3,024,000 from the Carl Moyer Program Fund SB1107 Account.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
In 2005, the heavy-duty on-road fleet modernization program category was added to the Carl Moyer Program, which provides financial incentives to replace older high-polluting diesel trucks with newer lower emissions diesel and natural gas trucks. On February 3, 2006, the Board set aside $6 million to replace older heavy-duty diesel trucks at the Port of Los Angeles (POLA) and the Port of Long Beach (POLB) with new LNG trucks under its “Year 8” Carl Moyer Program. On February 1, 2007, AQMD, POLA, and POLB released a joint RFP for a total amount of $22 million to solicit LNG truck projects.
Proposal
This action is to execute a contract with Southern Counties Express to replace 21 heavy-duty pre-1990 diesel trucks with 2006 model year LNG trucks in an amount not to exceed $3,024,000 from the “Year 8” Carl Moyer Program Fund SB 1107 Account. POLA will also fund an additional 50 LNG trucks with Southern Counties Express from their share of the funds. AQMD’s contribution per truck will be up to $144,000, whereas POLA’s contribution will be up to $184,000. POLA and Southern Counties Express have agreed that funding of the trucks with AQMD funds will be completed prior to those funded by POLA, and that AQMD’s share of the project will be fully implemented no later than June 30, 2008.
Total NOx and PM reductions from this proposed project will be approximately 20 tons/year and 1.5 tons/year, respectively. GPS units will be installed on the trucks under an AQMD contract with a GPS vendor, and the cost will be reimbursed from the Carl Moyer Program Fund SB1107 Account set aside separately for that purpose. All trucks in this proposed project will operate between the ports and distribution centers in inland empire, which are considered disproportionately impacted (DI) areas according to the requirements of AB1390. Furthermore, this project fulfills the Board’s goods movement requirement as a funding priority.
In the RFP, to meet criteria for receiving AQMD Port LNG Truck Fleet Modernization Carl Moyer “Year 8” funds, proposals must indicate that pre-1990 model-year trucks would be replaced by the applicant. Among the applicants, there were only two companies that could readily provide pre-1990 trucks for replacements fulfilling AQMD’s requirement. These two companies were Total Transportation Services and Southern Counties Express. At its June 1, 2007 meeting, the Board also awarded 20 LNG trucks to Total Transportation Services for $2,880,000, thus fulfilling its $6 million commitment to goods movement and port LNG truck projects under the “Year 8” Carl Moyer Program.
Outreach
The RFP was released by POLA, and POLA and POLB did the outreach and held workshops for this program. This program was posted on AQMD’s website as well, which provided information on the program and linked to POLA’s website.
Benefits to AQMD
The successful implementation of the proposed port truck fleet modernization project will help the AQMD to significantly reduce NOx and PM10 emissions from heavy-duty trucks in a cost effective and expeditious manner.
Resource Impacts
The total project cost of up to $3,024,000 for the proposed truck fleet modernization project will be provided from the “Year 8” Carl Moyer Program Fund SB 1107 Account.