BOARD MEETING DATE: September 7, 2007
AGENDA NO. 34

REPORT:

Mobile Source Air Pollution Reduction Review Committee

SYNOPSIS:

Below is a summary of key issues addressed at the MSRC’s July 19 and August 16, 2007, meetings. The next MSRC meeting is scheduled for Thursday, September 20, at 2 p.m. in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file.

Michael D. Antonovich
AQMD Representative on MSRC

Minutes

Minutes from the May 31, 2007 retreat as well as the June 21 and July 19, 2007 meetings were unanimously approved. They are attached for your information (Attachment 1).

Update on FY 2007-08 Work Program

At the MSRC’s August 16, 2007 meeting, its Technical Advisory Committee updated the MSRC on progress in developing the FY 2007-08 Work Program. Three subcommittees were formed and have begun deliberations based on the guidance from the MSRC’s May 31, 2007 retreat. The subcommittees are developing candidate strategies and funding level ranges for the following: 1) local government match, incorporating the traditional alternative fuel heavy-duty and infrastructure incentives and potentially including a new element incorporating intelligent transportation systems, onboard diagnostics for city fleets, and alternative fuel pickup trucks for municipal fleets; 2) alternative fuel infrastructure to continue incentives for new alternative fuel stations, expansions and facility modifications; 3) follow-on to the “Showcase” Off-Road Emission Control Demonstration Program currently being implemented; 4) repowers of off-road equipment engines certified to the 2007 optional 0.2 gram NOx per brake horsepower hour standard; and 5) plug-in hybrid incentives. They are also investigating the potential of offering incentives for alternative fuel “big rig” freeway service patrols, transit passes for community colleges, and additional TCM programs. The Subcommittees will bring forward recommendations at the MSRC’s October meeting and then solicitations for consideration by the MSRC at their November meeting, which may be changed from the 15th to the 8th. If the timeline stays on track, the FY 2007-08 Work Program categories and solicitations will be sent to the AQMD Board for consideration at the December 7, 2007 meeting.

Alternative Fuel Infrastructure Awards

As an element of their FY 2006-07 Phase I AB 2766 Discretionary Fund Work Program, the MSRC allocated $3.5 million for the implementation of an alternative fuel infrastructure program. The Alternative Fuel Infrastructure Funding Opportunities Program Announcement offered funding for new as well as upgraded or expanded alternative fuel stations and maintenance facility modifications. The MSRC’s award combined with any AQMD cost-sharing may not exceed 50 percent of the total project costs, and the maximum funding for any one entity cannot exceed 60 percent of the total funding in this work program category. The extended application period for the Alternative Fuel Infrastructure Funding Opportunities Program was October 6, 2006 through May 25, 2007. The MSRC and AQMD Board already approved three applications totaling $750,000. At its July 19, 2007 meeting the MSRC considered an additional 13 applications, and unanimously approved awards for 8 (of the 13) applications in the amount of $1,447,688.32. Thus, of the $3.5 million allocated to this program, the MSRC has awarded $2,197,688.32. The remaining funds allocated to this program ($1,302,311.68) were released for use in funding projects in other categories.

At the MSRC’s June 21, 2007 meeting a consultant representing two clients addressed the MSRC and informed the Committee that his clients recently experienced increased construction costs for their respective natural gas refueling stations. The representative was seeking MSRC consideration of funding a portion of the cost overruns experienced by his clients. The MSRC requested that its staff review policy and past practice regarding cost overruns on alternative fuel infrastructure projects. The written report prepared in response to the MSRC’s request essentially noted that: both projects had already been funded by the MSRC and are still in progress; one project was funded up to the maximum allowable under the solicitation, and the solicitation for the other project specifically prohibited seeking funds for cost overruns and the language was carried over into the executed contract; and allocating additional funding to these two open contracts would be inconsistent with MSRC policies, would not be in compliance with contract requirements, and could set a negative precedent. At its July 19, 2007 meeting the MSRC received and filed the written report and took no further action.

Local Government Match Program Awards

Under Phase II of the FY 2006-07 Work Program, the MSRC released a $2 million Local Government Match Program Announcement. Eligible categories include the traditional funding for heavy-duty alternative fuel vehicles and alternative fuel infrastructure as well as a new category to fund street sweeping operations using low-emission alternative fuel street sweepers, limited to jurisdictions that sweep streets as a documented PM10 control strategy. The Program Announcement included an open application period commencing March 13, 2007 and closing June 29, 2007. At its August 16, 2007 meeting, the MSRC considered requests for funding from 26 applications under this Program. Using $2,738,339 million in unallocated carryover revenue and/or turn-back funds, coupled with the $2 million originally allocated to this Program, the MSRC unanimously approved funding for all 26 applications.

Advanced Low-Emission Heavy-Duty Natural Gas Solid Waste Collection Engine Awards

Also under Phase II of the FY 2006-07 Work Program, the MSRC released a $1.728 million Program Announcement for the purchase or repower of solid waste collection vehicles with advanced low-emission heavy-duty natural gas engines certified to the 2007 optional 0.2 gram NOx per brake horsepower hour standard. It included a geographic minimum of $256,000 per county and funds would be awarded on a first-come, first-served basis. The application period commenced April 3, 2007, and closed June 29, 2007, at which time a total of 11 applications for new engines had been received. No applications for repowers of solid waste collection vehicles were submitted. Using $2,240,00 million in unallocated carryover revenue and/or turn-back funds, coupled with the $1.728 million originally allocated to this Program, the MSRC unanimously approved funding for all 11 applications at its August 16, 2007 meeting.

CNG School Bus Incentives for Public Schools

As an element of their FY 2006-07 Phase I Work Program, the MSRC allocated $1 million for CNG school bus incentives for public school districts. The MSRC approved awards of $500,000 each to A-Z Bus Sales and BusWest. Subsequently, the MSRC awarded another $100,000 to A-Z Bus Sales. All funds allocated to this contractor have been expended under its existing contract, #MS07001. At its August 16, 2007 meeting, the MSRC unanimously approved augmenting A-Z Bus Sales’ existing contract, #MS07001, with an additional $900,000 contingent upon receiving purchase orders and letters of intent to purchase from public school districts. Since all funds originally allocated to this program have been expended, unallocated carryover revenue and/or turn-back funds were used to augment this contract as part of the FY 2006-07 Work Program.

Programmatic Outreach Services

For the last several years the MSRC has retained a consultant to provide programmatic outreach services. The current consultant contract expires October 2, 2007. Consequently, on April 6, 2007, the MSRC released an RFP to solicit proposals for Programmatic Outreach Services for FYs 2007-08 and 2008-09. The selected contractor would assist in promoting the MSRC’s programs as well as provide outreach assistance to current and prospective MSRC contractors. The target funding for this RFP is $100,000 under the FY 2006-07 Work Program. When the RFP closed on May 15, 2007, one proposal had been received from the current contractor, The Better World Group. At its August 16, 2007 meeting, the MSRC unanimously awarded a contract to The Better World Group in an amount not to exceed $98,845 for programmatic outreach services for a two-year period as part of the FY 2006-07 Work Program. The RFP provides for an option clause to allow the MSRC to exercise a contract extension for one additional two-year term for the chosen consultant, as prior RFPs and consultant contracts have done. Any additional funding to exercise the option for additional time will be brought forward to the MSRC and AQMD Board for consideration and approval at that time.

Website Upgrades

The MSRC maintains a website http://www.cleantransportationfunding.org for outreach and assistance to contractors, proposers and others interested in clean transportation. Development of the website was done several years ago by Haaland Internet Productions (HiP Design), and HiP Design continues to provide maintenance and hosting services to the MSRC. The MSRC-TAC’s Administrative Subcommittee monitors the website and periodically evaluates or develops potential ideas for improvements. Four primary areas for improvement of the website have been identified: 1) to add an updatable feature area on the home page; 2) to enhance the subscriber electronic notification systems; 3) to create a new section to highlight the Clean Transportation Policy Report prepared monthly by the MSRC’s Outreach Coordinator; and 4) to develop a proposal upload feature. HiP Design proposed to perform these improvements under its existing contract #MS05070 for a total cost of $12,680. At its August 16, 2007 meeting, as part of the FY 2007-08 Work Program, the MSRC unanimously approved adding an additional $12,680 to HiP Design’s existing contract to conduct this work.

FYs 2003-04 and 2004-05 Audit of AB 2766 Discretionary Fund

AB 2766 requires any agency that receives fee revenues subvened to the AQMD from the Department of Motor Vehicles to be subject to an audit once every two years. The seventh biennial audit has been completed. For the Discretionary Fund portion of the funds awarded by the MSRC, the scope of the audit included ten projects randomly selected from the Work Programs awarded by the MSRC in FYs 2003-04 and 2004-05. The audits of the MSRC Fund and auditor-selected MSRC projects resulted in no findings. The MSRC received and filed this report at its July 19, 2007 meeting.

Report on Miscellaneous Expenditures for FY 2006-07 Second Quarter

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 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 second quarter expenses were $5,284.73 (for a total of $14,189.80 for the first half of the FY). The MSRC unanimously received and filed this quarterly expense report at its August 16, 2007 meeting.

Contract Modification Requests

At its July 19 and August 16, 2007 meetings, the MSRC considered eight contract modification requests and took unanimous action, as follows:

  1. For Los Angeles Department of Water and Power Contract #PT05060, which provides $2,244,000 for the installation of 264 diesel exhaust after-treatment devices, approval of an extension for the deadline for completing device installations from 18 to 30 months from the date of contract execution;
  2. For the Regents of the University of California Contract #MS05041, which provides $15,921 for CNG station upgrades; approval of a nine-month contractual term extension;
  3. For American Honda Motor Company Contract #MS04058, which provides $300,000 for home refueling apparatus lease incentives, approval of a seven-month contractual term extension;
  4. For City of La Canada Flintridge Contract #ML05023, which provides $20,000 towards the purchase of one CNG bus, approval of a one-year contractual term extension;
  5. For Orange County Transportation Authority Contract #PT05063, which provides $603,500 for the installation of 71 diesel exhaust after-treatment devices, approval of an extension for the deadline for completing device installations from 12 to 24 months from the date of contract execution;
  6. For Cathedral City Contract #MS03069, which provides $22,953 for wind fencing, approval of a three-month contractual term extension;
  7. For Varner Construction Contract #MS05035, which provides $401,780 towards the repower of one scraper engine, four water pull engines and one rock truck engine; approval of a six-month contractual term extension; and
  8. For City of Glendale Contract #AB01010, which provides $200,000 for installation of a new CNG station, approval of an 18-month contractual term extension (from December 2007).

Received and Approved Final Reports

At its July 19 and August 16, 2007 meetings, the MSRC unanimously received and approved a total of ten final reports for the following contracts:

  1. City of Inglewood Contract #MS05046, which provided $139,150 for CNG station upgrades;
  2. Jagur Tractor Contract #MS05051, which provided $660,928 to repower six scrapers;
  3. City of Palm Springs Contract #MS03026, which provided $44,529 towards the purchase of one alternative fuel pickup truck as well as soil stabilization and paving;
  4. Los Angeles County MTA Contract #MS05039, which provided $405,000 towards the purchase of 75 CNG buses;
  5. Los Angeles County MTA Contract #MS04008, which provided $854,050 towards the purchase of 50 CNG buses;
  6. City of San Bernardino Contract #PT06015, which provided $66,000 for a diesel exhaust after-treatment program;
  7. County Sanitation Districts of Los Angeles County Contract #MS06011, which provided $150,000 for construction of a CNG station;
  8. City of Ontario Contract #MS05042, which provided $117,832 for CNG station upgrades;
  9. Coachella Valley Association of Governments Contract #MS03025, which provided $20,730 for wind fencing; and
  10. Eastern Municipal Water District Contract #PT05065, which provided $150,000 for diesel exhaust retrofits.

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 Reports

The MSRC's AB 2766 Contracts Administrator provides monthly written status reports on all open contracts from FY 2000-01 through the present. The Contracts Administrator’s Reports for July and August 2007 are attached for your information. As part of its monthly Contracts Administrator Report, at its August 16, 2007 meeting, the MSRC recognized a correction to a contractor’s name. They previously awarded funding to the City of Los Angeles, Environmental Affairs Department, in an amount not to exceed $350,000 for maintenance facility modifications to accommodate natural gas vehicles. It was subsequently determined that the contractor should be the City of Los Angeles, General Services Department, and not the Environmental Affairs Department. The AQMD Board will consider this correction under the FY 2005-06 Work Program at its September 7, 2007 meeting.

Attachments (exe 326 kb)

  1. Approved 5/31/07, 6/21/07 and 7/19/07 MSRC Minutes
  2. Contracts Administrator’s Reports for July and August 2007


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