BOARD MEETING DATE: July 11, 2008
AGENDA NO. 9

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute the following contracts for the FY 2007-08 Carl Moyer Program from the Carl Moyer Program SB 1107 Fund (32) with the following entities:
   1. Go Green Rental and Leasing for the purchase of 10 new CNG refuse vehicles in an amount not to exceed $74,672.
   2. Vanguard Car Rental USA for the purchase of 12 new CNG shuttle buses in an amount not to exceed $150,168.
   3. Mike Campbell & Associates for the purchase of 100 new LNG trucks in an amount not to exceed $5,119,800.
   4. Republic Services for the purchase of 40 new LNG refuse vehicles in an amount not to exceed $1,197,117.
   5. MAG Sweeping for the purchase of 2 new CNG street sweepers in an amount not to exceed $21,887.
   6. Nationwide Environmental Services for the purchase of 10 new CNG street sweepers in an amount not to exceed $309,630.
   7. Dy-Dee Services of Pasadena for the purchase of 4 new CNG delivery vehicles in an amount not to exceed $30,270.
   8. Enterprise Rent-A-Car for the purchase of 10 new CNG shuttle buses in an amount not to exceed $125,140.
   9. Clean Street for the purchase of 10 new CNG street sweepers in an amount not to exceed $309,630.
   10. Anytime Trucking for the retrofit of 5 trucks in an amount not to exceed $105,050.
   11. Gardner Trucking for the retrofit of 117 trucks in an amount not to exceed $1,857,536.
   12. H&L Charter for the retrofit of 6 trucks in an amount not to exceed $139,956.
   13. Juan Rivera for the retrofit of 1 truck in an amount not to exceed $15,437.
   14. Gustavo Marin for the retrofit of 1 truck in an amount not to exceed $15,437.
   15. Salvador Santiago for the retrofit of 1 truck in an amount not to exceed $13,495.
   16. Miguel Alvarez for the retrofit of 1 truck in an amount not to exceed $13,495.
   17. Raul Esparza for the retrofit of 1 truck in an amount not to exceed $13,495.
   18. Aurelio Garcia for the retrofit of 1 truck in an amount not to exceed $14,895.
   19. Raul Perez for the retrofit of 1 truck in an amount not to exceed $23,400.
   20. Samuel Mira for the retrofit of 1 truck in an amount not to exceed $23,400.
   21. O&B Trucking for the retrofit of 1 truck in an amount not to exceed $23,686.
   22. Jaime Avila Munoz for the retrofit of 1 truck in an amount not to exceed $13,495.
   23. Raul Alvarado for the retrofit of 1 truck in an amount not to exceed $13,495.
   24. Portillo Sigfredo for the retrofit of 1 truck in an amount not to exceed $23,400.
   25. WBR Transportation for the retrofit of 2 trucks in an amount not to exceed $26,990.
   26. Global Transloading for the retrofit of 1 truck in an amount not to exceed $28,842.
   27. Shul Gumercindo for the retrofit of 1 truck in an amount not to exceed $15,320.
   28. Superior Ready Mix Concrete for the retrofit of 11 trucks in an amount not to exceed $268,200.
   29. WC Logistics for the retrofit of 13 trucks in an amount not to exceed $285,298.
   30. EZE Trucking for the retrofit of 6 trucks in an amount not to exceed $91,926.
   31. Santos Olivos for the retrofit of 1 truck in an amount not to exceed $13,495.
   32. Duran Leon for the retrofit of 1 truck in an amount not to exceed $13,495.
   33. Francisco Delgadillo for the retrofit of 1 truck in an amount not to exceed $13,495.
   34. Guillermo Omelas for the retrofit of 1 truck in an amount not to exceed $13,495.
   35. Lorenzo Rivas for the retrofit of 1 truck in an amount not to exceed $13,495.
   36. JCR & Sons Express for the retrofit of 1 truck in an amount not to exceed $13,495.
   37. Eric Trace for the retrofit of 1 truck in an amount not to exceed $13,495.
   38. Edgar Miro for the retrofit of 1 truck in an amount not to exceed $13,495.
   39. Norman Canizales for the retrofit of 1 truck in an amount not to exceed $13,495.
   40. Ismael Zalaya for the retrofit of 1 truck in an amount not to exceed $13,495.
   41. Camacho Transport for the retrofit of 1 truck in an amount not to exceed $23,400.
   42. Javier Rojas Trucking for the retrofit of 1 truck in an amount not to exceed $23,400.
   43. Manuel Vaca for the retrofit of 1 truck in an amount not to exceed $23,400.
   44. Eduardo Ledgard for the retrofit of 1 truck in an amount not to exceed $13,462.
   45. Virgillo Gonzales for the retrofit of 1 truck in an amount not to exceed $13,495.
   46. Francisco Tapia for the retrofit of 1 truck in an amount not to exceed $13,495.
   47. Santos Bolanos for the retrofit of 1 truck in an amount not to exceed $13,495.
   48. Gerardo Zamudio for the retrofit of 1 truck in an amount not to exceed $13,495.
   49. Jose Luis Rodriguez for the retrofit of 1 truck in an amount not to exceed $13,495.
   50. Gustavo Cardoza for the retrofit of 1 truck in an amount not to exceed $13,495.
   51. Luis Castro for the retrofit of 1 truck in an amount not to exceed $13,495.
   52. Gabriel Villasenor for the retrofit of 1 truck in an amount not to exceed $13,495.
   53. Hugo W. Amado for the retrofit of 1 truck in an amount not to exceed $13,495.
   54. Conrado Castro for the retrofit of 1 truck in an amount not to exceed $13,495.
   55. Leyton Inc., Rafael Morales for the retrofit of 1 truck in an amount not to exceed $11,572.
   56. Arizona Pipeline for the retrofit of 2 trucks in an amount not to exceed $42,030.
   57. Jaime Brito for the retrofit of 1 truck in an amount not to exceed $15,437.
   58. Ramiro Ortiz for the retrofit of 1 truck in an amount not to exceed $13,495.
   59. Salvador Alvarez for the retrofit of 1 truck in an amount not to exceed $13,495.
   60. Cerritos Trucking for the retrofit of 1 truck in an amount not to exceed $24,106.
   61. Ricardo Sandoval for the retrofit of 1 truck in an amount not to exceed $13,495.
   62. Isack Mumurung for the retrofit of 1 truck in an amount not to exceed $23,400.
   63. Pedro Baltazar for the retrofit of 1 truck in an amount not to exceed $13,495.
   64. Juan Ramirez for the retrofit of 1 truck in an amount not to exceed $13,495.
   65. Luis Vigueres for the retrofit of 1 truck in an amount not to exceed $13,495.
   66. Jesus Huerta for the retrofit of 1 truck in an amount not to exceed $13,495.
   67. Johnny Castro for the retrofit of 1 truck in an amount not to exceed $13,495.
   68. Samuel Rios for the retrofit of 1 truck in an amount not to exceed $13,495.
   69. CPS Express for the retrofit of 2 trucks in an amount not to exceed $23,046.
   70. Juan Castillo for the retrofit of 1 truck in an amount not to exceed $13,495.
   71. Carlos Marquina for the retrofit of 1 truck in an amount not to exceed $13,495.
   72. Jose Flores for the retrofit of 1 truck in an amount not to exceed $13,495.
   73. Julian Valenzuela for the retrofit of 1 truck in an amount not to exceed $13,495.
   74. Fernando Dominguez for the retrofit of 1 truck in an amount not to exceed $13,495.
   75. Cooney Express for the retrofit of 1 truck in an amount not to exceed $23,593.
   76. Dispatch Transportation for the retrofit of 1 truck in an amount not to exceed $15,147.
        
2. Authorize the Chairman to execute the following contracts for the SOON Provision of the state in-use off-road vehicle regulation from the Carl Moyer Program SB 1107 Fund (32) with the following entities:
   1. Sukut Equipment for the repower of 5 dual engine scrapers in an amount not to exceed $940,920.
   2. R&L Brosamer for the repower of 1 paver, 1 placer, and 2 graders in an amount not to exceed $239,546.
   3. Waste Management for the repower of 2 loaders and 1 tractor in an amount not to exceed $189,194.
   4. Southern California Grading for the repower of 3 single engine scrapers in an amount not to exceed $354,171.
   5. Burrtec Waste Industries for the repower of 1 compactor and 4 loaders in an amount not to exceed $466,044.
   6. Road Builders for the repower of 7 dozers, 1 grader, 1 loader, 1 scraper and 6 off-road trucks in an amount not to exceed $1,605,858.
   7. Coburn Equipment for the repower of 13 dual engine scrapers in an amount not to exceed $3,307,893.
   8. Mesa Contracting for the repower of 13 dozers and 1 single engine scraper in an amount not to exceed $1,903,632.
   9. Varner Construction for the repower of 2 dozers, 3 loaders, 4 tractors, and one single engine scraper in an amount not to exceed $1,201,674.
   10. County Sanitation Districts of Los Angeles County for the repower of 1 loader, 1 dozer, 8 tractors, and 1 dual engine scraper in an amount not to exceed $1,446,508.
        

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Carl Moyer Program

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 tenth year of the CMP and the fourth year of the program with a long-term source of funding generated under SB 1107 and AB 923. On February 1, 2008, the Board approved the release of Program Announcement #PA2008-06 to solicit proposals for “Year Ten” of the Carl Moyer Program. On May 2, 2008, a total of 242 proposals were received requesting approximately $58.8 million in funding.

For the FY 2007-08 Carl Moyer Program, CARB has allocated $34,782,473 under SB 1107 to the AQMD, comprised of $33,043,349 in project funds and $1,739,124 in administrative funds. In addition, $5,367,666 is required from the AQMD as its local match funding.
 

The SOON Provision

The California Air Resources Board (CARB) adopted the in-use off-road diesel vehicle regulation in July 2007. The regulation includes a provision called the Surplus Off-Road Opt-in for NOx (SOON) which allows districts (which elect to opt-into this provision) to achieve additional NOx reductions beyond the state’s base regulation based on the more stringent SOON fleet average NOx targets through the use of incentive funds. The SOON provision applies to large fleets with a total maximum power greater than 20,000 horsepower on a statewide level consisting of more than 40% Tier 0 and Tier 1 vehicles and operating in respective air districts. The AQMD issued its Program Announcement #PA2008-01 for $30 million, under the SOON Provision on November 2, 2007, and opted into this provision of the state regulation at its May 2, 2008 Board meeting.
 

Proposal

Carl Moyer Program

This action is to approve the recommended on-road heavy-duty truck purchase and retrofit projects as outlined in Table 1, for the FY 2007-08 Carl Moyer Program in an amount not to exceed $11,085,385, from the Carl Moyer Program SB 1107 Fund.

Due to the overwhelming number of submitted on-road applications, and the anticipated adoption of CARB’s on-road private fleet regulation in October, 2008, all the on-road private fleet purchase and retrofit applications have been evaluated first and are being recommended for approval so that their contracts can be executed prior to the adoption of CARB’s regulation. Funding recommendations for all the other remaining categories will be provided in the near future with a detailed update on funding availability and expenditures.

All the cost-effectiveness calculations have been done according to CARB’s Carl Moyer Program guidelines released on April 22, 2008. Funding eligibility of projects subject to CARB rules and compliance plans have been discussed with, and approved by, CARB staff.

Total NOx and PM reductions from the recommended on-road projects are approximately 113.4 tons/year and 3.84 tons/year, respectively.
 

SOON Provision

This action is to approve the recommended off-road repower projects, as outlined in Table 3, under the SOON provision of the state in-use off-road vehicle regulation in an amount not to exceed $11,655,440, from the Carl Moyer Program SB 1107 Fund.

Total NOx reductions from the recommended off-road projects are approximately 209 tons/year.

The applications have been evaluated according to CARB’s Carl Moyer Program guidelines released on April 22, 2008. Since the off-road program was undersubscribed, all the submitted and qualified projects have been evaluated and recommended for funding. The maximum allowable cost effectiveness limit in the evaluation of the applications has been raised to the program allowable limit of $16,000 per ton NOx. A new program announcement has been re-issued for the balance of the available funds.
 

Carl Moyer Program Funding Distribution

Funding for projects has been recommended based on the priorities of the Carl Moyer Program Guidelines 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
   

All the on-road new truck purchases are alternative fuel projects and some of the on-road truck retrofit projects are in goods movement operations. However, since this award is only for on-road truck purchases and retrofits, the final percentage of the projects considered as goods movement will be calculated after the remaining balance of the “Year Ten” Carl Moyer funds are awarded.
 

Table 2 summarizes staff’s recommendation for awards under the Environmental Justice category in disproportionately impacted (DI) areas as required by AB 1390. The total amount of projects funded in DI areas is $9,840,265. The total amount of projects funded solely based on cost-effectiveness is $1,245,120. In summary, approximately 89% of the projects are in disproportionately impacted areas. However, this percentage will be adjusted after the remaining balance of the “Year Ten” Carl Moyer funds are awarded. In the evaluation process, staff recommended cost-effective proposals in the DI areas first with 50% of the available funding based on the criteria 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:
3. 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
4. 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
5. 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 rankings 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, public notices advertising the RFP/RFQs and inviting bids were 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. Notices of the RFP/RFQs were 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 and SOON programs is a direct result of these technology advancement activities. The vehicles and equipment funded under these program announcements will operate many years and will provide long-term emissions reductions.
 

Resource Impacts

Funding for Year Ten of the Carl Moyer Program on-road projects shall not exceed $11,085,385 from the Carl Moyer Program SB 1107 Fund.

Funding for the SOON Program off-road projects shall not exceed $11,655,440 from the Carl Moyer Program SB 1107 Fund.
 

Attachment (doc 195 kb)

Table 1 – Recommended Carl Moyer Program Awards under #PA2008-06 Funded with SB 1107 Funds
Table 2 – Funding Distribution of Recommended Carl Moyer Program Awards
Table 3 – Recommended SOON Program Awards under #PA2008-01 Funded with SB 1107 Funds