BOARD MEETING DATE: February 2, 2007
AGENDA NO. 9

Execute Truck Fleet Modernization Contracts for the Carl Moyer Memorial Air Quality Standards Attainment Program

SYNOPSIS:

On July 7, 2006, the Board approved the release of Program Announcement to solicit projects to replace pre-1990 diesel trucks with Model Year 2006 and newer diesel or 2004 and newer natural gas trucks at a cost not to exceed $6 million under the Carl Moyer Truck Fleet Modernization Program.  This program is being implemented on a first-come first-served basis, and will be on-going until funds are expended.  The projects are evaluated as they are submitted on a monthly basis and are recommended for the Board's approval.  This action is to execute fleet modernization contracts under the Carl Moyer Program.

COMMITTEE:

Not Applicable

RECOMMENDED ACTIONS:

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 Guadalupe G. Rodriguez to replace a Class 8, 1976 model year diesel truck with a Class 8, 2006 or newer model year diesel truck in an amount not to exceed $74,822.
2. A contract with Shamrock Group, Inc. to replace a Class 8, 1988 model year diesel trucks with a Class 8, 2007 model year diesel truck in an amount not to exceed $120,011.
3. A contract with Vartkes Tahmasian to replace a Class 8, 1989 model year diesel truck with a Class 8, 2007 model year diesel truck in an amount not to exceed $86,446.
4. A contract with Nery Orellana to replace a Class 8, 1985 model year diesel truck with a Class 8, 2006 or newer model year diesel truck in an amount not to exceed $65,755.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

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 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 the Program Announcement, PA #2007-01, to solicit projects for this program.

Proposal

This action is to execute heavy-duty truck fleet modernization contracts to replace pre-1990 trucks with model year 2006 and newer diesel trucks and model year 2004 and newer natural gas trucks in an amount not to exceed $347,034.  Table 1 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.  Total NOx and PM reductions from the recommended projects are approximately 3 tons/year and 0.28 tons/year, respectively.  All the recommended award recipients have agreed to complete the recommended projects by June 30, 2008.

Table 1: 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 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, 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 program announcement will operate many years and will provide long-term emissions reductions.

Resource Impacts

The total project cost of $347,034 for the proposed truck fleet modernization projects will be funded from the “Year 8” Carl Moyer Program Fund SB 1107 Account.