BOARD MEETING DATE: June 1, 2007
AGENDA NO. 10
PROPOSAL:
Execute Port LNG Truck Fleet Modernization Contract under the “Year 8” Carl Moyer Program, and Authorize Final Payment on a Completed Contract
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. 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 Total Transportation Services to replace 20 heavy-duty pre-1990 diesel trucks with 2006 model year LNG trucks in an amount not to exceed $2,880,000. This action is also to authorize final payment on a completed marine vessel contract with OceanAir Environmental, LLC under the State Emissions Mitigation program.
COMMITTEE:
Technology, May 25, 2007. Less than a quorum was present during the discussion of this item. The Chairman communicated his concurrence and recommendation that this item be forwarded for Board consideration.
RECOMMENDED ACTIONS:
- Authorize the Chairman to execute a contract with Total Transportation Services to replace 20 heavy-duty pre-1990 diesel trucks with 2006 model year LNG trucks in an amount not to exceed $2,880,000 from the Carl Moyer Program Fund SB1107 Account.
- Authorize the Executive Officer to approve payment of the unpaid balance in the amount of $47,540 to OceanAir Environmental, LLC from the State Emissions Mitigation Fund under completed Contract No. 02273, which was closed inadvertently.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Port LNG Truck Fleet Modernization
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. 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. Six applications were received for 170 trucks for a total funding request of $24.5 million.
Final Payment on a Completed Contract
On June 7, 2002, Contract No. 02273 was executed with OceanAir Environmental, LLC to repower 53 diesel engines on marine vessels for the amount of $1,077,913. Subsequently, on June 17, 2005, the contract was reduced from $1,077,913 to $541,533 to repower 35 auxiliary engines due to Contractor’s inability to repower the remaining vessels prior to the scheduled due date. However, the modified contract amount should have been for $589,073 instead of $541,533. This was an inadvertent error by staff. Consequently, the contract was closed and adequate funds are not available to pay the final invoice of $47,540. Staff recommends that an outstanding unpaid balance of $47,540 under contract No. 02273 with OceanAir Environmental, LLC be paid from the State Emissions Mitigation Fund. The work was completed but the contract was closed before the final payment, due to inadvertent error by staff.
Proposal
Port LNG Truck Fleet Modernization
This action is to execute a contract with Total Transportation Services to replace 20 heavy-duty pre-1990 diesel trucks with 2006 model year LNG trucks in an amount not to exceed $2,880,000 under the “Year 8” Carl Moyer Program. Total NOx and PM reductions from this proposed project will be approximately 20 tons/year and 1.5 tons/year, respectively. This project will be completed by June 30, 2008. GPS units will be installed on these trucks under an AQMD contract with a GPS vendor, and the cost will be reimbursed from the Carl Moyer Program Fund SB1107 Account. All trucks in this proposed project operate at the ports, which are considered a disproportionately impacted (DI) area according to the requirements of AB1390. The remaining balance of $3,120,000 from AQMD’s $6 million contribution will be used for similar truck fleet modernization projects in the near future after resolving some pending issues with CARB.
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 $2,888,000 for the proposed truck fleet modernization project will be provided from the “Year 8” Carl Moyer Program Fund SB 1107 Account.
Sufficient funds are available in the State Emissions Mitigation Program, Fund 39 to authorize the Executive Officer to make final payment of the unpaid balance in the amount of $47,540, to OceanAir Environmental, LLC under the completed Contract No. 02273.