BOARD MEETING DATE: October 5, 2007
AGENDA NO. 9

Diesel-powered construction equipment contributes significant amounts of NOx and PM into the South Coast Air Basin. On March 2, 2007, the MSRC issued a RFQ to manufacturers of diesel emission control systems and a Program Announcement for owners of off-road diesel construction equipment. Thirty diesel emission control devices were submitted by 16 manufacturers, and 21 applications with a total of 230 pieces of off-road construction equipment were received from 18 construction equipment fleets. This action is to request contract awards to 11 construction equipment fleets to demonstrate combined NOx and PM reducing emission technologies on 32 pieces of construction equipment at a total cost not to exceed $1,245,750 from the Clean Fuels Fund. The MSRC will fund the remaining projects with 198 pieces of equipment at a cost of $3,641,013.

COMMITTEE:

Technology, September 28, 2007, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Chairman to execute contracts from the Clean Fuels Fund (Fund 31) with the following organizations:

1. Albert W. Davies Inc., to co-sponsor the demonstration of selective catalytic reduction system with diesel particulate filter technology for NOx and PM emissions control from diesel-fueled construction equipment as listed in Attachment A in an amount not to exceed $45,650;
    
2. Altfillisch Contractors Inc., to co-sponsor the demonstration of selective catalytic reduction system with diesel particulate filter technology for NOx and PM emissions control from diesel-fueled construction equipment as listed in Attachment A in an amount not to exceed $232,900;
    
3. California Department of Transportation to co-sponsor the demonstration of selective catalytic reduction system with diesel particulate filter technology for NOx and PM emissions control from diesel-fueled construction equipment as listed in Attachment A in an amount not to exceed $212,000;
    
4. City of Culver City Transportation Department to co-sponsor the demonstration of selective catalytic reduction system with diesel particulate filter technology for NOx and PM emissions control from diesel-fueled construction equipment as listed in Attachment A in an amount not to exceed $38,900;
    
5. City of Los Angeles, Environmental Affairs Department to co-sponsor the demonstration of selective catalytic reduction system with diesel particulate filter technology for NOx and PM emissions control from diesel-fueled construction equipment as listed in Attachment A in an amount not to exceed $53,900;
    
6. Community Recycling & Resources Recovery Inc., to co-sponsor the demonstration of selective catalytic reduction system with diesel particulate filter technology for NOx and PM emissions control from diesel-fueled construction equipment as listed in Attachment A in an amount not to exceed $363,250;
    
7. ECCO Equipment Corporation to co-sponsor the demonstration of selective catalytic reduction system with diesel particulate filter technology for NOx and PM emissions control from diesel-fueled construction equipment as listed in Attachment A in an amount not to exceed $17,600;
    
8. Griffith Company to co-sponsor the demonstration of selective catalytic reduction system with diesel particulate filter technology for NOx and PM emissions control from diesel-fueled construction equipment as listed in Attachment A in an amount not to exceed $74,550;
    
9. Reed Thomas Co., Inc., to co-sponsor the demonstration of selective catalytic reduction system with diesel particulate filter technology for NOx and PM emissions control from diesel-fueled construction equipment as listed in Attachment A in an amount not to exceed $150,500;
    
10. Shimmick Construction Company to co-sponsor the demonstration of selective catalytic reduction system with diesel particulate filter technology for NOx and PM emissions control from diesel-fueled construction equipment as listed in Attachment A in an amount not to exceed $38,900; and
     
11.  Tiger 4 Equipment Leasing to co-sponsor the demonstration of selective catalytic reduction system with diesel particulate filter technology for NOx and PM emissions control from diesel-fueled construction equipment as listed in Attachment A in an amount not to exceed $17,600.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Based on the CARB OFFROAD 2006 emission model, there are approximately 68,600 pieces of diesel-powered construction equipment in the Basin in 2006 which together produce approximately 120 tons per day of NOx and 7.5 tons per day of PM emissions. Selective catalytic reduction (SCR) combined with diesel particulate filter (DPF) technology is capable of reducing NOx and PM emissions from heavy-duty diesel trucks by at least 80 percent. Encouraged by this emission-reducing potential of such systems, AQMD staff has been working with the MSRC and CARB under the Off-Road Vehicle Retrofit Showcase Program to reduce NOx and PM emissions from construction equipment by accelerating the verification of diesel retrofit devices for off-road construction equipment.

On March 2, 2007, the MSRC issued a Request for Qualification (RFQ) to manufacturers of diesel emission control systems and a Program Announcement for owners of off-road diesel construction equipment. Thirty diesel emission control devices were submitted by sixteen manufacturers, and twenty-one applications with a total of 230 pieces of off-road construction equipment were received from 18 fleet owners. On September 20, 2007, the MSRC approved MSRC-TAC Vehicle Subcommittee recommendations to provide a total of $3,641,013 to fund all but 11 projects with 198 pieces of construction equipment. This action is to provide funds for the remaining 11 projects which will provide combined NOx and PM emission reductions on 32 pieces of construction equipment operating on 34 diesel-powered engines.

Proposal

The proposed project is to demonstrate the reliability and emission reduction potential of NOx and PM technologies on 230 diesel-powered construction equipment operating in the South Coast Air Basin. The construction equipment includes scrappers, excavators, dozers, loaders, backhoes, crawler tractors, and forklifts powered by diesel engines ranging in sizes from 17 to 692 hp. The scope of the project includes the design, installation, and in-field demonstration of SCR system and DPF technologies on diesel-powered construction equipment with the goal of verifying the technologies through CARB at the end of the project.

This action is to enter into an agreement with 11 construction equipment fleets to demonstrate SCR system with DPF technology on 32 pieces of construction equipment at a total cost not to exceed $1,245,750.

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 have been 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 is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724

CARB, as the MSRC’s partner in the “Showcase” Program, sent out special direct mailings to retrofit equipment manufacturers as well as fleets to apprise them of this opportunity. The solicitations were also placed on the MSRC’s website at http://www.cleantransportationfunding.org.

Benefits to AQMD

The proposed project is included in the 2007 Technology Advancement Plan Update under the category, “Emission Control Technologies: Develop and Demonstrate Advanced Aftertreatment Technologies.” The proposed project supports the implementation of near-term emission control technology that that could potentially reduce NOx and PM emissions from diesel-powered construction equipment by more than 80 percent.

Resource Impacts

The total cost for this project is estimated to be $4,886,763, of which AQMD cost shall not exceed $1,245,750. MSRC will contribute the remaining $3,641,013 in direct funding contributions. CARB, participating construction equipment fleets, and control technology manufacturers will provide in-kind assistance, including, project administration, construction equipment and control technology design and selection, installation, emissions and performance testing, data analysis, and reporting. The total estimated cost-share for this project is provided below:

Sufficient funds are available from the Clean Fuels Program Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

Attachment (DOC 54.5kb)
A. Proposed Construction Equipment Demonstration Project Under Showcase Program