BOARD MEETING DATE: October 5, 2007
AGENDA NO. 10

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute the following contracts for the FY 2006-07 Carl Moyer Program:
   1. A contract with LAMTA for the repower of 184 CNG urban buses in an amount not to exceed $3,164,064 from the Carl Moyer Program Fund SB 1107 Account.
   2. A contract with OCTA for the repower of 116 LNG urban buses in an amount not to exceed $2,900,000 from the Carl Moyer Program Fund SB 1107 Account.
   3. A contract with Republic Services for the purchase of 35 LNG refuse vehicles in an amount not to exceed $1,032,130 from the Carl Moyer Program Fund AB 923 Account.
   4. A contract with Waste Management Collection and Recycling for the purchase of 59 CNG and 101 LNG refuse vehicles in an amount not to exceed $3,290,385 from the Carl Moyer Program Fund AB 923 Account.
   5. A contract with city of Culver City for the purchase 6 CNG refuse vehicles in an amount not to exceed $96,510 from the Carl Moyer Program Fund interest dollars.
   6. A contract with Brookvale International LLC for the retrofit of 7 LPG forklifts in an amount not to exceed $12,835 from the Carl Moyer Program Fund interest dollars.
   7. A contract with Sun-Flow Inc. for the purchase of 2 electric forklifts in an amount not to exceed $4,789 from the Carl Moyer Program Fund interest dollars.
   8. A contract with Sysco Food Services of Los Angeles for the retrofit of 61 TRUs in an amount not to exceed $151,524 from the Carl Moyer Program Fund SB 1107 Multidistrict Account.
   9. A contract with Southern California Regional Rail Authority for the installation of 15 anti idling devices on passenger locomotives in an amount not to exceed $109,605 from the AB 923 Account interest dollars.
   10. A contract with Pacific Harbor Line for the purchase of 2 multiengine ultra-low emitting switcher locomotives in an amount not to exceed $2,520,000 comprised of $974,989 from the Carl Moyer Program Fund SB 1107 Account, $968 from the SB 1107 Account interest dollars, $789,705 from the Carl Moyer Program Fund AB 923 Account, $199,438 from the AB 923 Account interest dollars, $547,700 from the Proposition 40 interest dollars and $7,200 from the Carl Moyer Program Fund interest dollars.
   11. A contract with Metropolitan Stevedore Company for the purchase of 1 multiengine ultra-low emitting switcher locomotive in an amount not to exceed $1,044,800 from the Carl Moyer Program Fund AB 923 Account.
   12. A contract with Long Beach Transit for the repower of 2 main engines of a marine vessel in an amount not to exceed $81,744 from the Carl Moyer Program Fund SB 1107 Multidistrict Account.
   13. A contract with ABC Barge & Equipment for the repower of 5 main engines of 2 marine vessels in an amount not to exceed $950,160 from the Carl Moyer Program Fund SB 1107 Multidistrict Account.
   14. A contract with Southern California Ship Services for the repower of 3 main and 2 auxiliary engines of a marine vessel in an amount not to exceed $283,698 from the Carl Moyer Program Fund SB 1107 Multidistrict Account.
   15. A contract with Avalon Mooring & Diving Service for the repower of 2 main engines of a marine vessel in an amount not to exceed $43,890 from the Carl Moyer Program Fund SB 1107 Multidistrict Account.
   16. A contract with Pacific Adventure Tours for the repower of 2 main engines of a marine vessel in an amount not to exceed $118,800 from the Carl Moyer Program Fund SB 1107 Multidistrict Account.
   17. A contract with Santa Catalina Island Company for the repower of 2 main engines of a marine vessels in an amount not to exceed $52,924 from the Carl Moyer Program Fund SB 1107 Multidistrict Account.
   18. A contract with Harbor Breeze Corp. for the repower of 2 main engines of a marine vessels in an amount not to exceed $217,800 from the Carl Moyer Program Fund SB 1107 Multidistrict Account.
   19. A contract with Crystal Organic Farms for the repower of 3 agricultural pump engines in an amount not to exceed $180,008 from the Carl Moyer Program Fund AB 923 Account.
   20. A contract with Chino Welding and Assembly for the repower of 2 agricultural pump engines in an amount not to exceed $75,493 from the Carl Moyer Program Fund AB 923 Account.
   21. A contract with Joyful Farms for the repower of 2 agricultural pump engines in an amount not to exceed $87,479 from the Carl Moyer Program Fund AB 923 Account.
   22. A contract with Disneyland Resort for the repower of 12 trams with CNG engines in an amount not to exceed $848,440 from the AB 923 Account interest dollars.
   23. A contract with Lazer Truck Lines for the retrofit of 11 on-road trucks in an amount not to exceed $228,327 from the Carl Moyer Program Fund interest dollars.
   24. A contract with EZE Trucking for the retrofit of 34 on-road trucks in an amount not to exceed $625,232 from the AB 923 Account interest dollars
   25. A contract with Robertson’s Ready Mix for the retrofit of 75 on-road trucks in an amount not to exceed $1,528,683 from the Carl Moyer Program Fund interest dollars.
   26. A contract with CR&R for the retrofit of 4 on-road trucks in an amount not to exceed $91,988 from the Carl Moyer Program Fund SB 1107 Multidistrict Account.
   27. A contract with Gonsalves and Santucci Inc. for the retrofit of 4 on-road trucks in an amount not to exceed $93,920 comprised of $55,184 from the Carl Moyer Program Fund SB 1107 Multidistrict Account, and $38,736 from the SB 1107 interest dollars.
        
2. B. Authorize the Chairman to execute contracts from the back-up list of unfunded projects as listed in Table 4, should additional funds become available from turn-back projects and interest funds.
    
3. C. Transfer $1,904,250 in Clean Fuels funded projects approved on January 1, and April 6, 2007, as listed in Table 5, to the Carl Moyer Fund utilizing Carl Moyer Program turn-back funds as listed in Table 6, and $16,755 in Carl Moyer interest funds.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Carl Moyer Memorial Air Quality Standards Attainment Program (CMP) provides funding on an incentive basis for the incremental cost of purchasing cleaner than required engines and equipment. This is the ninth year of the CMP and is the third year of the program with a long-term source of funding generated under SB 1107 and AB 923. At its February 2, 2007 meeting, the Board approved the release of Program Announcement #PA2007-08 to solicit proposals for “Year Nine” of the Carl Moyer Program for approximately $25.5 million. By the closing date of May 4, 2007, a total of 133 proposals were submitted requesting approximately $88.3 million in funding.

CARB has allocated $34,549,672 under SB 1107 to the AQMD for the FY 2006-07 Carl Moyer Program. In addition, $5,056,114 is required from the AQMD as its local match funding. At its July 13, 2007 meeting, the Board approved $11,983,135 of the “Year Nine” SB 1107 Funds for construction equipment projects. Table 1, shows the total amount of remaining funds currently available under SB 1107 and AB 923, in addition to returned funds and interest dollars generated in the Carl Moyer Program Fund that can be used to fund projects.

Table 1. Carl Moyer Program Available Funds

Proposal

Carl Moyer Program
This action is to approve recommended projects with the Carl Moyer Program funds for FY 2006-07 under SB 1107 & AB 923, and with interest funds generated in the Carl Moyer Program Fund.

All the cost-effectiveness calculations are done according to CARB’s Carl Moyer Program guidelines released on January 6, 2006. Funding eligibility of projects subject to CARB rules and compliance plans have been discussed with and approved by CARB staff. Table 2 provides a detailed list of all the projects proposed for funding.

Total NOx and PM reductions from the recommended projects are approximately 450 tons/year and 12.5 tons/year, respectively.

Table 3 summarizes staff’s recommendation for awards in disproportionately impacted areas under the requirements of AB 1390. The total amount of projects funded in disproportionately impacted areas is $11,255,451. The total amount of projects funded solely based on cost-effectiveness is $8,579,777. In summary, 57% of the projects are in disproportionately impacted areas.

In order to facilitate use of funds more expeditiously, staff recommends the Board’s approval to use the backup list of unfunded projects as set forth in Table 4, should additional funds become available from turn-back projects and interest funds. Projects will be selected based on their cost effectiveness.

Transfer of Funds
CARB’s Carl Moyer Program guidelines have strict requirements for expenditure of funds for each year before allocation of new funds for each subsequent year. This year the Board approved funding of construction equipment projects for approximately $4 million using Clean Fuels Funds on the basis that this amount would be returned to the Clean Fuels program by future Carl Moyer turn-back funds. This action is to transfer $1,904,250 in Clean Fuels funded projects, approved in January and April 2007 and as listed in Table 5, to the Carl Moyer Fund utilizing Carl Moyer Program turn-back funds as listed in Table 6, as funds become available, plus $16,755 in Carl Moyer interest funds.

Funding Distribution

Funding for projects has been recommended based on the priorities of the “Carl Moyer Program Guidelines under SB 1107 & AB 923” adopted by the Board on July 8, 2005. The priorities of the guideline are:

• Goods Movement (no less than 40%)
• Environmental Justice (no less than 50%)
• Cost Effectiveness
• Low Emission Engine/Vehicle Preference
• Early Commercialization of Advanced Technologies/Fuels
• Fleet Rules
• School Buses

Due to the types of applications received about 25% of the recommended awards satisfy the Goods Movement objective. However, with the Board’s allocation of $14.2 million for funding of heavy-duty LNG trucks at the ports and the Fleet Modernization Program this objective will be satisfied.

Approximately 57% of the award dollars are recommended for projects under the Environmental Justice category in disproportionately impacted (DI) areas as shown in Table 3. In the evaluation process, staff recommended cost-effective proposals in the DI areas first with 50% of the available funding based on their ranking as described below. The remaining qualified DI proposals with all other qualified proposals were then recommended for funding based on cost effectiveness only.

Disproportionate Impact (DI) Point Ranking

The requirements of AB 1390 are implemented according to the following criteria.

1. All projects must qualify for the Carl Moyer program by meeting the cost effectiveness limits established in the RFP.

2. All projects were evaluated according to the following criteria to qualify for funding under DI requirements:

1. Poverty Level: All projects in areas where at least 10% of the population falls below the Federal poverty level based on the year 2000 census data, are eligible to be included in this category, and
2. PM Exposure: All projects in areas with the highest 15% of PM concentration will be eligible to be ranked in this category. The highest 15% of PM concentration level is 46 micrograms per cubic meter and above, on an annual average, or
3. Air Toxics Exposure: All projects in areas with a cancer risk of 1,000 in a million and above (based on MATES II estimates) will be eligible to be ranked in this category.

The maximum score is comprised of 40 percent for poverty level, and 30 percent each for PM and toxic exposures. Special circumstances exist in some areas, such as the Ports of Long Beach and Los Angeles. Since there are no residents within the ports, poverty ranking could not be established. In this case, the poverty ranking from the adjacent on-shore areas were extended to the port since these populated areas are directly impacted by port activities.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was 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 have been notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ was 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). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Benefits to AQMD

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 RFP will operate many years and will provide long-term emissions reductions.

Resource Impacts

Funding for Year Nine of the Carl Moyer Program shall not exceed $19,835,228 from the Carl Moyer Program Fund, comprised of:

There are sufficient funds in the Carl Moyer Program Fund.

Table 2: Recommended Awards by Fund Account

Table 3: Award Recommendations and Proposed Funding Distribution

Table 4: Backup List of Projects from Program Announcement #PA2007-08

Table 5. Clean Fuels Project to Be Transferred to the Carl Moyer Fund

Table 6. Carl Moyer Project Returned Funds