BOARD MEETING DATE: July 13, 2007
AGENDA NO. 24

REPORT:

Mobile Source Air Pollution Reduction Review Committee

SYNOPSIS:

Below is a summary of key issues addressed at the MSRC’s special May 31, 2007 offsite annual retreat as well as their June 21, 2007 regular meeting. The MSRC’s next meeting is Thursday, July 19, 2007, at 2 p.m. in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file.

Michael D. Antonovich
AQMD Representative on MSRC

Minutes

Minutes from the March 15 and April 19, 2007 meetings were unanimously approved. They are attached for your information (Attachment 1).

MSRC Annual Retreat with its Technical Advisory Committee

The MSRC conducted its annual joint retreat with its Technical Advisory Committee on Thursday, May 31, 2007, at Cal Poly Pomona’s Kellogg Center. The MSRC heard presentations on: 1) legislative issues and state activities including reducing greenhouse gas emissions, the low-carbon fuel standard, and petroleum reduction; 2) CARB’s actions over the last year and its funding priorities which primarily focus on climate change and reducing greenhouse gas emissions as well as NOx reductions to meet federal and ozone PM2.5 measures; and 3) the guiding principles in the 2007 AQMP and AQMD’s priorities, such as acceleration of fleet modernization including off-road vehicles and a greater penetration of clean engine technologies, high emitting vehicle identification and repairs, technology demonstrations, and continued incentive funding. The MSRC also heard topic points and counterpoints for supporting projects in the areas of natural gas, plug-in hybrids, bio-fuels, and greenhouse gases. The MSRC heard briefings on the following possible funding areas: big rig freeway service patrol projects; transit passes for community college students; and off-road construction equipment repowers and retrofits including potentially funding eligible projects on the Carl Moyer Program backup list. At the conclusion of the retreat, the MSRC directed its Technical Advisory Committee to convene its subcommittees and develop a range of options for their consideration.

Annual Elections of MSRC Chair and Vice Chair

The MSRC's Operational Policies and Procedures call for the annual election every May of the chair and vice chair of the MSRC and its Technical Advisory Committee (MSRC-TAC). At its May 31, 2007 meeting, the MSRC unanimously re-elected its current chair Gwenn Norton-Perry, who is a Council Member of Chino Hills and represents the San Bernardino Associated Governments on the MSRC. This will be her fourth term as chair. The MSRC also unanimously re-elected Ron Roberts as its vice-chair for another one-year term. Mr. Roberts is a Council Member of Temecula and represents the Southern California Association of Governments on the MSRC. This will also be his fourth term.

At the MSRC-TAC’s June 7, 2007 meeting, they unanimously voted to re-elect their current chair Gretchen Hardison for another one-year term. Ms. Hardison represents the City of Los Angeles. This will be her fifth term. The MSRC-TAC also re-elected its current vice-chair, Ryan Erickson, who represents the Orange County Transportation Authority. This will be his second term.

Award to Certified Transportation Services for CNG School Bus Incentives

The MSRC allocated $4 million under the FY 2006-07 Work Program for CNG school bus incentives for private pupil transportation providers, and requested the AQMD administer the program on a first-come, first-served basis. Of the $4 million, a total of $3,012,629 has already been committed. Certified Transportation Services has requested funding for one full-size Type D CNG school bus. Since they are a small private provider, they are unable to negotiate directly with school bus manufacturers. Consequently, they are requesting $60,000 in funding to match the incentive provided to public school districts. At its June 21, 2007 meeting the MSRC unanimously approved an award of $60,000 to Certified Transportation Services. The AQMD Board will consider this item at its July 13, 2007 meeting.

Alternative Fuel Infrastructure Awards under FY 2006-07 Work Program

The MSRC allocated $3.5 million for the implementation of an alternative fuel infrastructure program. Eligible projects included new as well as upgraded or expanded alternative refueling stations as well as maintenance facility modifications. New publicly accessible stations are eligible for 50 percent of hardware and installation costs up to a maximum of $250,000 to $350,000 depending upon station type. At its June 21, 2007 meeting, the MSRC unanimously approved two awards: 1) A contract to Rainbow Disposal in an amount not to exceed $350,000 towards construction of a CNG refueling station in Huntington Beach; and 2) A contract to Clean Energy in an amount not to exceed $350,000 towards construction of an L/CNG refueling station in Long Beach. The AQMD Board will consider these two contract awards at its July 13, 2007 meeting. The Alternative Fuel Infrastructure Funding Opportunities Program Announcement #PA2007-05 closed on October 6, 2006. Additional applications received by the end date are being considered by the MSRC’s Technical Advisory Committee and will be brought forward in the near future.

OCTA’s Freeway Service Patrol Program Project Scope

As part of its FY 2005-06 Phase I Work Program, the MSRC allocated $3.95 million to the four county transportation commissions (CTCs) to implement Efficiency Freeway Service Patrol (FSP) Programs. The project categories included implementation of new or expanded FSP beats as well as projects that demonstrate technologies which improve FSP efficiency. Funding was allocated starting with an initial $700,000 per county geographic minimum with the remaining $1.15 million funds distributed using their Tier 1 Statewide FSP formula. The Orange County Transportation Authority (OCTA) was awarded $928,704 on this basis. The AQMD Board approved this sole-source contract on September 9, 2005. Since OCTA’s project scope differed significantly from that of the other three CTCs, which plan to use their funding to implement new and/or expanded beats, it was decided the MSRC should take formal action to approve it. Specifically, OCTA proposes to use their funding to install automated vehicle locator and mobile data terminal (AVL/DMT) systems in their entire FSP fleet. The system’s purpose is to increase efficiency, providing faster FSP response times to accident scenes and inoperable vehicles. Increased efficiency would in turn reduce vehicle emissions by reducing traffic congestion and idling time. Since the program allowed projects that demonstrate technologies which improve FSP efficiency, the MSRC unanimously approved the FSP project proposed by OCTA at its June 21, 2007 meeting. Although the AQMD Board previously approved the sole-source award to OCTA, the MSRC seeks AQMD Board approval of the project scope. The AQMD Board will consider this item at its July 13, 2007 meeting.

Contract Modifications for Vehicle Substitutions or Infrastructure Station Location Changes

At its June 21, 2007 meeting, the MSRC considered four contract modifications under the FYs 2003-04 and 2005-06 Work Programs. It was determined these modifications needed to be approved by the AQMD Board as well. The AQMD Board will consider these modifications at its July 13, 2007 meeting. They are as follows:

1. For Cathedral City Contract #ML04037, substitution of one heavy-duty CNG vehicle for two medium-duty CNG vehicles instead; therefore, the modified contract to Cathedral City will be for the purchase of up to three medium-duty and one heavy-duty CNG vehicles with no change to the $50,000 contract value;
2. For County of Orange Contract #ML04038, substitution of one heavy-duty CNG vehicle for one medium-duty CNG vehicle instead; therefore, the modified contract to County of Orange will be for the purchase of up to one medium-duty and four heavy-duty CNG vehicles and installation of CNG infrastructure with no change to the $440,000 contract value
3. For City of San Fernando Contract #ML04037, change in location of CNG infrastructure; therefore, the modified contract to the City of San Fernando will be towards the purchase of up to two medium-duty and three heavy-duty CNG vehicles and installation of CNG infrastructure in the amount of $262,042 (a reduction from the original MSRC and Board award); and
4. For City of Rancho Cucamonga Contract #ML06057, substitution of one natural gas heavy-duty truck for a natural gas street sweeper instead; therefore, the modified contract to the City of Rancho Cucamonga will be for the purchase of up to one natural gas heavy-duty truck and three natural gas street sweepers with no change to the $100,000 contract value.

Budget Transfer and Miscellaneous Expenditures Reports

Administrative costs for the AB 2766 Discretionary Program are limited to five percent annually per statute. Every year the MSRC adopts an Administrative Budget for the upcoming fiscal year to ensure costs remain within this limitation. For FY 2007-08, the MSRC adopted an Administrative Budget in the amount of $634,571, which is more than $100,000 below the cap. While the Administrative Budget is adopted annually by the MSRC, expenditures are not directly drawn from the MSRC fund account, but are taken directly from the AQMD’s budget and subsequently reimbursed from the MSRC fund account. More recently, AQMD staff has found that the AQMD Budget may not have sufficient funds to cover the MSRC administrative expenditures in addition to its own expenditures and must reallocate funds to cover any expenditure exceeding the budget. At its June 21, 2007 meeting, the MSRC unanimously approved a fund transfer of $56,900 to the AQMD Science & Technology Advancement FY 2007-08 Budget for the Miscellaneous Direct and Travel Costs included in the MSRC’s FY 2007-08 Administrative Budget. Staff will diligently track expenses throughout the year, report to the MSRC on a quarterly basis, and any unused monies will be transferred back to the MSRC’s fund account (Fund 23) at the end of the fiscal year. A similar process is followed when the AQMD receives grant funds from the U.S. EPA. The AQMD Board will consider this item at its July 13, 2007 meeting.

For FY 2005-06 the MSRC adopted an Administrative Budget in the amount of $618,615 and allocated $41,440 for the reimbursement of miscellaneous administrative and mailing costs, in addition to $2,500 for travel. AQMD staff reported that actual FY 2005-06 fourth quarter expenses were $9,321.16 and total FY 2005-06 actual costs were $30,920.27. The MSRC unanimously received and filed this quarterly expense report.

For FY 2006-07 the MSRC adopted an Administrative Budget in the amount of $619,146 and allocated $55,690 for the reimbursement of miscellaneous administrative and mailing costs, in addition to $2,500 for travel. AQMD staff reported that actual FY 2006-07 first quarter expenses were $8,905.27. The MSRC unanimously received and filed this quarterly expense report.

Contract Modification Requests

At its June 21, 2007 meeting, the MSRC considered three contract modification requests and took action, as follows:

1. For City of Whittier Contract #ML04012, which provides $153,333 towards the purchase of three heavy-duty and three medium-duty CNG vehicles and installation of a CNG station, approval of a no-cost, one-year contract term extension;
2. For City of Inglewood Contract #ML05026, which provides $60,000 towards the purchase of two CNG transit buses and one CNG pothole patch truck, approval of a no-cost, six-month contract term extension; and
3. For Sanitation Districts of Los Angeles County Contract #PT06007, which provides $108,000 to install 24 diesel exhaust aftertreatment devices, approval to extend the deadline for installation from 12 to 15 months from contract execution.

The MSRC previously awarded two sole-source contracts to: 1) BusWest in the amount of $90,930 to provide the lease of two CNG Thomas Built school buses; and 2) S-W Compressors in the amount of $60,000 to provide the lease of two temporary CNG stations. No changes are proposed to these two sole-source contracts, which were issued to implement a Mountain Area CNG School Bus Demonstration Program. However, it was originally intended that two different schools would each receive one leased bus with a temporary fueling station. Bear Valley Unified School District has enthusiastically embraced the demonstration program. However, Rim of the World Unified School District continues to express concerns including citing a CNG station anywhere near a school. Since Bear Valley has expressed a desire to demonstrate both buses, the MSRC unanimously decided to allocate both demonstration buses along with their temporary fueling stations, if it is determined both stations are needed, to Bear Valley. The buses will be used in regular school service for all applications with no restrictions including traveling up and down the mountain.

Received and Approved Final Reports

At its June 21, 2007 meeting the MSRC received and approved one final report for City of Signal Hill Contract #ML05017, which provided $126,000 for traffic signal synchronization.

All final reports are filed in the AQMD's library and a two-page summary of each closed project can be viewed in the electronic library on the MSRC's website. It is anticipated that in the future the MSRC’s website, http://www.cleantransportationfunding.org, will include complete final reports in its electronic library.

Contracts Administrator’s Report

The MSRC's AB 2766 Contracts Administrator provides a written status report on all open contracts from FY 2000-01 through the present. The Contracts Administrator’s Report for June 2007 is attached for your information.

Attachments (EXE 558kb)

1. Approved 3/15/07 and 4/19/07 MSRC Minutes
2. Contracts Administrator’s Report