BOARD MEETING DATE: June 6, 2008
AGENDA NO. 8

RECOMMENDED ACTIONS:

1. Recognize upon receipt $24,037,500 from CARB under the Proposition 1B Goods Movement Emission Reduction Program into the AQMD Proposition 1B – Goods Movement Program Fund (Fund 81); and
2. Approve issuance of Program Announcement #PA2008-10 in the amount of $24,037,500 to solicit projects for the FY 2007-08 Proposition 1B Goods Movement Emission Reduction Program.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In November 2006, California voters approved Proposition 1B which provided $1 billion and established the Goods Movement Emission Reduction Program. This is a new incentive program designed to reduce diesel emissions and public health risks from goods movement activities along California’s trade corridors. The program will provide financial incentives to upgrade on-road and off-road vehicles and equipment used in goods movement to cleaner technologies.
 

Out of $250 million budgeted for FY2007-08, CARB initially made $25 million available for Early Grant projects, of which the AQMD received $13.8 million for drayage and non-drayage truck projects in February 2008. On April 26, 2008, CARB staff recommended the allocation of $24,037,500 to the AQMD from the remaining $225 million for FY2007-08 for on- and off-road emission reduction projects in select source categories. Additionally, CARB staff allocated $98,000,000 to the Ports of Los Angeles and Long Beach for drayage truck projects as part of the Los Angeles/Inland Empire corridor’s share of funds. AQMD fully supports this allocation to the twin ports, but further believes AQMD’s many years experience in implementing the Carl Moyer Program, its streamlined contracting process, and project inspection capabilities, would be extremely valuable in helping the Ports administer these projects. As a result, AQMD has and will continue to urge CARB for joint administration of these projects with the Ports to ensure their expedited and successful implementation. In total, the South Coast region has been allocated 55% of the FY 2007-08 funds. The awards under the $225 million portion of the program were approved by CARB Board approval on May 22, 2008, a week after the AQMD’s Technology Committee meeting on May 16, 2008.
 

Proposal

Staff recommends the Board recognize $24,037,500 from CARB under the Proposition 1B Goods Movement Emission Reduction Program into the AQMD Proposition 1B Fund (Fund 81) contingent upon CARB Board approval. Staff also recommends Board approval for the issuance of Program Announcement #PA2008-10 (attachment 1) for $24,037,500 less the administrative cost designated by CARB to solicit on- and off-road emission reduction projects. Table 1 outlines the proposed funding allocations for each source category as allocated by CARB.

Proposals will be due by 1:00 p.m., Friday, July 18, 2008. Subsequently staff will finalize the review and evaluation of the proposals and recommend the awards for Board approval contingent upon receiving the required funds from CARB. The Proposition 1B Program Announcement is attached.
 

Table 1

Source Category Proposed Funding Limits

 Proposed Amount* Maximum Funding per Equipment**

Category  ($)   ($) 

ON-ROAD

Non-Drayage Trucks 18,322,500 50,000/truck

and Truck Stop Electrification  6,000-18,000 per space

Intermodal Rail Yard Truck 2,625,000 5,000 per PM trap

Retrofit (PM Traps)
 

OFF-ROAD

Switcher Locomotives 3,090,000 750,000 per locomotive

* The proposed amounts are inclusive of admin costs as allowed by CARB, and will be outlined in detail at the time of awards.

** The above funding amounts per equipment require a 1:1 cost share by the applicant.
 

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the Program Announcement and inviting bids will be 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 be notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the Program Announcement will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov where it can be viewed by making menu selections “Inside AQMD”/“Employment and Business Opportunities”/“Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html). Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

On March 25, 2008, AQMD along with the Ports of Los Angeles and Long Beach held a community meeting in Long Beach to discuss potential Proposition 1B projects for FY 2007-08. On April 29, 2008, CARB held a public workshop in Long Beach to announce staff recommended projects for FY 2007-08.

AQMD has also worked closely with the California Trucking Association and the California Dump Truck Owners Association in soliciting applications for the program. In addition, AQMD retained the services of several consultants such as TIAX LLC and Gladstein, Neandross & Associates in soliciting potential applicants.

Benefits to AQMD

The successful implementation of the proposed projects will reduce NOx and PM emissions in a cost-effective and expeditious manner to meet the goals of the 2007 AQMP. The above proposed vehicles and equipment will operate for many years in the South Coast region and provide long-term emission reductions.

Resource Impacts

The above proposed projects will be funded from the $24,037,500 allocation by CARB for the FY 2007-08 Proposition 1B Goods Movement Emission Reduction Program, contingent upon CARB Board approval on May 22, 2008.
 

Attachment (doc 1155 kb)

Program Announcement #PA2008-10