BOARD MEETING DATE: February 2, 2007
AGENDA NO. 20
Issue Program Announcement for Local Government Match Program and Augment Funding for CNG School Bus Incentives Under Phase II of FY 2006-07 AB 2766 Discretionary Fund Work Program
SYNOPSIS:
At its January 18, 2007 meeting, the MSRC unanimously approved release of a $2 million Program Announcement for its highly successful Local Government Match Program. The MSRC also allocated an additional $2 million in funding for CNG school bus incentives for private pupil transportation providers. This would augment the $2 million already approved by the AQMD Board on September 8, 2006. The MSRC seeks AQMD Board approval to release the Program Announcement and to augment CNG school bus incentives under Phase II of FY 2006-07 AB 2766 Discretionary Fund Work Program.
COMMITTEE:
Mobile Source Air Pollution Reduction Review, January 18, 2007
RECOMMENDED ACTIONS:
- Approve the issuance of the Program Announcement (#PA2007-09) for the Local Government Match Program, providing funding up to $2 million under Phase II of FY 2006‑ 07 Work Program, as described in this letter; and
- Approve and allocate an additional $2 million for CNG school bus incentives for private pupil transportation providers under Phase II of FY 2006-07 Work Program as described in this letter.
Gwenn Norton-Perry
Chair, MSRC
Background
In September 1990 Assembly Bill 2766 was signed into law (Health & Safety Code Sections 44220-44247) authorizing the imposition of an annual $4 motor vehicle registration fee to fund the implementation of programs exclusively to reduce air pollution from motor vehicles. AB 2766 provides that 30 percent of the annual $4 vehicle registration fee subvened to the AQMD be placed into an account to be allocated pursuant to a work program developed and adopted by the MSRC and approved by the AQMD Governing Board.
For the past several years the MSRC has included funding in its Work Programs for local governments to purchase heavy-duty alternative fuel vehicles and construct alternative fuel infrastructure. The Local Government Match Program has been highly successful and usually receives more requests for funding than monies available. In fact, because of demand the MSRC implemented two Local Government Match Programs under its FY 2005-06 Work Program, both of which were oversubscribed. The AQMD Board approved the contracts for the second program in the amount of $1,842,969 at its December 1, 2006 meeting. At its January 18, 2007 meeting, the MSRC considered release of a Program Announcement for this highly successful program under its Phase II FY 2006-07 Work Program. Further details are described below in the Proposals section.
The FY 2006-07 Work Program under Phase I included $2 million in funding for CNG school bus incentives for private pupil transportation providers. The AQMD Board approved this allocation at its September 8, 2006 meeting. The program was set up so that private pupil transportation providers could apply for incentives, execute participant agreements, and the MSRC would fund incentives up to the amount necessary to ensure compliance with Rule 1195. AQMD staff is administering the program on behalf of the MSRC. At its January 18, 2007 meeting, the MSRC considered a recommendation to augment this funding based on demand to date with another $2 million under Phase II. Further details are described below in the Proposals section.
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.
The funding solicitation will also be placed on the MSRC's website at http://www.cleantransportationfunding.org/, and a targeted mailing to AB 2766 Subvention Fund city mayors, administrators and public works directors within the AQMD’s jurisdiction will be done.
Bidders’Conferences
A Bidders’ Conference for the Local Government Match Program is scheduled for Tuesday, February 27, 2006, at 1:30 p.m. in Room CC6.
Proposal Evaluation and Panel Composition
Proposals received for the Program Announcement (further outlined under the Proposals section) will be evaluated by members of the MSRC-TAC, which consists of a diverse group of individuals appointed by participating members as prescribed in the Health & Safety Code.
Proposals
At its January 18, 2007 meeting, the MSRC considered two recommendations from its Technical Advisory Committee.
As mentioned in the Background section, the MSRC considered release of a Program Announcement to implement another round of its highly successful Local Government Match Program. The MSRC unanimously approved release of the $2 million Program Announcement #PA2007-09 under Phase II of the FY 2006-07 Work Program. Eligible categories include the traditional funding providing dollar-for-dollar match for heavy-duty alternative fuel vehicles up to $25,000 per vehicle and alternative fuel infrastructure with a maximum amount per project of $350,000. However, it also includes a new category to fund street sweeping operations using low-emission alternative fuel street sweepers. The maximum amount per project is $100,000 with an allocation of $200,000 for this eligible category. This new category will be limited to jurisdictions that sweep streets as a documented PM10 control strategy. Funding for all eligible categories will be distributed on a first-come, first-serve basis with a geographic minimum per county of $250,000. The Program Announcement includes an open application period commencing March 13, 2007 and closing June 29, 2007.
As also mentioned in the Background section, the MSRC’s Phase I FY 2006-07 Work Program included $2 million in funding for CNG school bus incentives for private pupil transportation providers, and AQMD staff has been administering the program on behalf of the MSRC. At its January 18, 2007 meeting, the MSRC unanimously approved augmenting this funding in light of demand with an additional $2 million under Phase II. The MSRC’s funding will help ensure fewer diesel school buses are put on the roads since these incentives will go directly to the private pupil transportation provider and ensure compliance with Rule 1195.
The MSRC respectfully requests the AQMD Board’s approval to release the $2 million Local Government Match Program Announcement and to augment additional funds in the amount of $2 million for CNG school bus incentives to provide direct incentives to private pupil transportation providers under Phase II of the FY 2006-07 Work Program.
Resource Impacts
The AQMD acts as fiscal administrator for the AB 2766 Discretionary Fund Program (Health & Safety Code Section 44243). Money received for this program is recorded in a special revenue fund (Fund 23) and the contracts will be drawn from this fund. These contracts will have no fiscal impact on the AQMD’s operational budget.