BOARD MEETING DATE: March 7, 2008
AGENDA NO. 5

PROPOSAL:

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute the following contracts with funds from the Clean Fuels Program Fund:
1. CALSTART, Inc. for technical assistance with development, outreach, and commercialization of advanced technologies related to transit, Port and other activities in an amount not to exceed $75,000;
2. Clean Fuel Connection, Inc. for technical expertise on the CARB EMFAC mobile emissions model and other related mobile source issues in amount not to exceed $50,000;
3. Mr. Gary G. Full for technical expertise on remote sensing measurement technologies as applied to automotive, heavy-duty diesel, and other mobile sources in an amount not to exceed $20,000;
4. JWM Consulting Services for technical assistance with the review and assessment of advanced technologies, heavy-duty engines and conventional and alternative fuels in an amount not to exceed $30,000;
5. Nexant, Inc. for technical expertise on alternative fuels life-cycle analyses in an amount not to exceed $20,000; and
6. University of California, Riverside/CE CERT for technical assistance with the development and evaluation of low-emission and alternative fuels emissions impacts in an amount not to exceed $60,000.
2. Authorize the Chairman to amend the following contracts with addition of funds from the Clean Fuels Program Fund:
   1. Mr. Joseph C. Calhoun for technical assistance with the outreach and coordination with state agencies on advanced, low-emission light-duty and heavy-duty vehicle technologies in an additional amount not to exceed $30,000; and
   2. TIAX, Inc. for technical assistance with analyses, review and assessment of light- and heavy-duty advanced technologies using conventional and alternative fuels in an additional amount not to exceed $75,000.
3. Authorize the Chairman to execute a contract with Gladstein, Nandross & Associates for technical assistance, outreach, and implementation of the SOON and the Goods Movement programs in an amount not to exceed $100,000 from the administrative portion of the Carl Moyer Program Fund SB 1107 Account, and $110,000 from the Proposition 1B Goods Movement Program Fund to be established upon receipt of funds.
4. Authorize the Chairman to execute a contract with CALSTART, Inc. for outreach and technical assistance in the implementation of the Goods Movement Program in an amount not to exceed $70,000 from the Proposition 1B Goods Movement Program Fund to be established upon receipt of funds.
5. Authorize the Chairman to amend a contract with Burnett & Burnette for outreach, technical assistance, and feasibility analyses for the implementation of fueling infrastructures under the School Bus Program in an additional amount not to exceed $120,000 from the Proposition 1B School Bus Program Fund to be established upon receipt of funds.
6. Authorize the Chairman to amend a contract with Clean Fuel Connection, Inc. for analyses, outreach and implementation of incentive programs in an additional amount not to exceed $150,000 from the administrative portion of the Carl Moyer Program Fund SB 1107 Account.
7. Authorize the Chairman to amend a contract with TIAX, Inc. for technical assistance, outreach and implementation of the SOON and the Goods Movement programs in an additional amount not to exceed $100,000 from the administrative portion of the Carl Moyer Program Fund SB 1107 Account, and $150,000 from the Proposition 1B Goods Movement Program Fund to be established upon receipt of funds.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMP is the comprehensive regional plan for attaining federal air quality standards in the South Coast Air Basin. In addition to full implementation of current technologies and control methods, there is a need to further develop and promote technological breakthroughs. Air quality projections indicate that the federal standards for PM2.5 and ozone are not expected to be met without aggressive implementation of commercial technologies and accelerated development of new technologies.

The Technology Advancement Office administers two programs to accomplish these goals. The Clean Fuels Program supports projects to research develop, demonstrate, and deploy technologies to accelerate commercialization of clean, new technologies. The Carl Moyer Program and other similar programs provide incentive funding to end-users to implement the cleanest available technologies for various heavy-duty on- and off-road applications. Due to constant and rapid changes in technologies and the sheer breadth of the potential projects, staff occasionally requires input from experts and practitioners in-the-field to aid in selecting and establishing projects for the Clean Fuels and the Incentive programs.

At its November 2007 meeting, the Board approved RFP #P2008-11 for technical assistance to the Technology Advancement program. The purpose of that RFP was to update the list of qualified technical assistance contractors to ensure that the AQMD can obtain the best expertise available in the areas required by staff. The RFP solicited statements of qualifications from individuals and organizations potentially capable of providing technical assistance in a variety of areas to support staff activities. The RFP sought companies or individuals to provide assistance in preparation of AQMP control measures; technical assistance for feasibility studies of stationary and mobile emission control technologies; emissions assessment of new alternative-fuel technologies; evaluation of innovative emissions control systems; assessment of economic, regulatory and technical barriers to the commercialization of clean fuels and advanced technologies; assistance with the implementation of the large Proposition 1B incentive funds related to school buses and goods movement; and other activities as needed.

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, the Riverside County Press Enterprise newspapers and the California State Contracts Register to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may have been 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 RFP/RFQ was 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). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Proposal Evaluations

Thirteen proposals were received in response to the RFP. One proposal was received after the RFP closed and was disqualified. The remaining proposals were evaluated and scored by a four-member panel in accordance with established AQMD guidelines and using the technical criteria outlined in the RFP. The panel consisted of one AQMD Assistant Deputy Executive Officer, one Technology Implementation Manager, one On-road Mobile Source Manager and one Off-road Mobile Sources Manager. The panel’s gender and ethnic distribution were four male, two Asian Pacific Islander and two Caucasian. The panel scores are shown in Table 1 below.

The technical scores are based on the proponents’ expertise and experience. Based on these factors, two of the twelve proposals did not receive the required minimum technical points (56) and were not considered further.

Table 1. Average Scores for Proposers

For all of the proposals that qualified, staff added the cost effectiveness and additional points (a maximum of 15 points for small business or small business joint venture, disadvantaged veterans’ business or DVBE joint venture, use of DVBE or small business subcontractors, use of low emission vehicles, local business, and use of off-peak hours for delivery business). Based on these scores and current needs to effectively implement the Clean Fuels, the Carl Moyer, the Goods Movement, and the School Bus programs staff is recommending the funding levels for each of the proposers as shown in Table 2.

Table 2. Area of Expertise and Awards

				Prop 1B
Proposer	Area of Expertise	Clean Fuels $	Carl Moyer $	Goods Movement $	School Bus $	Totals
Burnett and Burnette*	Natural Gas Vehicles and Infrastructure				120,000	120,000
CALSTART	Commercialization of Adv. Tech/Transit/ Port Activities	75,000		70,000		145,000
Clean Fuel Connection*	Incentive Programs and Mobile Emissions Models	50,000	150,000			200,000
Mr. Gary G. Full	Remote Sensing Technologies and Applications	20,000				20,000
GNA	Incentive Programs/Goods Movement		100,000	110,000		210,000
Mr. Joseph C. Calhoun*	Low-emission Light- & Heavy-duty Veh Technologies	30,000				30,000
JWM Consulting Services	Advanced Technologies, Heavy-duty Engines and Fuels	30,000				30,000
Nexant, Inc.	Alternative Fuels Life Cycle Analyses	20,000				20,000
TIAX, LLC*	Alt. Fuel Technologies/Goods Mvmt/School Bus	75,000	100,000	150,000		325,000
UC Riverside/CE-CERT	Low-emission and Alternative Fuels Emissions Impacts	60,000				60,000
		$ 360,000	$ 350,000	$ 330,000	$120,000	$1,160,000

* Contract amendments

At the time RFP #2008-11 was approved, $500,000 was requested to provide the technical expertise in the areas of mobile source applications, fuels, stationary applications, emissions and analyses, and implementation activities. Given the quality of the expertise being offered, staff is proposing that eight of the proposals be awarded contracts with a cost not to exceed $360,000 from the Clean Fuels Fund.

Furthermore, since the time of the RFP release, it has become evident that the Proposition 1B Program will provide approximately $550M over four years in addition to the annual Carl Moyer Program funds. Because of this one-time incentive introduction and the continuity of the Carl Moyer Program including its newly introduced SOON Program, technical assistance is needed by staff to coordinate and submit proposals to CARB, conduct outreach to fleets, review and evaluate submittals, and prepare the requisite documentation to ensure adherence to the established program guidelines. Therefore, additional funding of $800,000 is requested to assist staff with the incentive program implementation.

The following is a synopsis for each of the proposed contractors:

Proposed Awards for Clean Fuels Program

Staff is recommending that eight of the ten proposals be funded to provide technical assistance under the Clean Fuels Program at a cost not to exceed $360,000.

Mr. Joseph Calhoun will provide technical expertise in the areas of light-and heavy-duty vehicles and provide high-level coordination and strategy insight for interactions with the state agencies as related to technical issues in an amount not to exceed $30,000. Mr. Calhoun currently has a contract in the amount of $20,000 from the Clean Fuels Fund. Mr. Calhoun is a registered professional engineer with over 48 years of air quality experience, specifically 19 years with General Motors where he was responsible for environmental activities in California and supervision the vehicle certification testing. Most notably, Mr. Calhoun served for ten years as the Automotive Engineering Member of the CARB Governing Board.

CALSTART, Inc. will provide technical expertise related to the development and commercialization of heavy-duty technologies, especially as related to transit and Port applications in an amount not to exceed $75,000. CALSTART has demonstrated capabilities in coordinating user-groups to focus sector needs in order to commercialize technologies, specifically in hybrid truck technologies and advanced technology transit bus applications. CALSTART currently serves an executive secretariat function to the U.S. Federal Transit Administration (FTA) on Bus Rapid Transit (BRT) issues such as vehicle technology, infrastructure, and deployment.

Clean Fuel Connection, Inc. will provide technical assistance with CARB EMFAC mobile emissions model, on-board diagnostics II systems, fuel permeation effects, in-use emissions, and inspection and maintenance program in an amount not to exceed $50,000. Mr. Mark Carlock currently has a contract through St. Malo Solutions in the amount of $115,000. Mr. Carlock, formerly the Branch Chief for CARB’s Mobile Source Analysis Branch, is a nationally recognized expert on emissions inventory development and validation. Mr. Carlock was lead authority in developing the inventories of mobile source emissions which are the foundation of the AQMP.

Mr. Gary G. Full will provide technical expertise for remote sensing measurement technologies as applied to automotive, heavy-duty diesel, and other mobile sources in an amount not to exceed $20,000. Mr. Full has over 20 years of industry experience with gasoline and diesel research and performance testing, development of on-board engine controllers, emissions measurement development and compliance testing systems, automotive diagnostic equipment development, and development and application of remote sensing measurement technologies as applied to automotive, diesel and other off-road mobile sources.

JWM Consulting will provide technical assistance with alternative technologies for heavy duty engines and fuels in an amount not to exceed $30,000. Dr. Wayne Miller is currently the Associate Director of the University of California, Riverside’s College of Engineering – Center for Environmental Research Technology. For the past six years, he has served as a Technical Advisor for the AQMD’s SB 98 Clean Fuels Advisory Group. He has over twenty five years experience working on federal and state automotive-related regulations, establishing fuel specification for distillate fuels, analyzing emissions data from passenger cars, heavy-duty diesel trucks and off-road mobile sources.

Nexant, Inc. will provide technical expertise for alternative fuel life-cycle analyses of total basin emissions including GHG quantification in an amount not to exceed $20,000. Nextant has worked on the US DOE/NREL Freedom Car project and the CEC on their CO2 sequestration technology assessment. Nexant has also provided technology assessments of power generation assets, technology upgrades, and operational enhancements to identify certifiable environmental improvements for regional power systems. Nexant also has experience in gasification technology, gas-to-liquids scoping, hydrogen production/infrastructure, and fuels logistics.

TIAX, LLC will provide technical assistance with the analyses, review and assessment of light- and heavy-duty advanced technologies using conventional and alternative fuels in an amount not to exceed $75,000 from the Clean Fuels Fund. Currently, TIAX, LLC has four contracts for a total of $340,000 from the Clean Fuels Fund. Mr. Jon Leonard, TIAX Project Manager, has over 24 years experience with low- and zero-emission mobile source technologies, emissions testing, and alternative fuel vehicles.

University of California, Riverside College of Engineering-Center for Environmental Research and Technology (CE-CERT) will provide technical expertise for emissions testing of diesel and alternative fueled vehicles in an amount not to exceed $60,000. CE-CERT has extensive experience in emissions measurement for light- and heavy-duty vehicles, container handling equipment, marine vessels, and aircraft. CE-CERT has worked with the AQMD, EPA, CARB and Caltrans on emissions studies since 1991.

Proposed Awards for the Carl Moyer and Proposition 1B Programs

Staff is recommending that four proposals be funded to provide assistance under the Carl Moyer and the Proposition 1B programs at a cost not to exceed $800,000.

Burnett and Burnette will also provide technical assistance with School Bus CNG infrastructure inspections and evaluations in an amount not to exceed $120,000. Burnett and Burnette currently have two contracts totaling $100,000. Mr. Herb Burnett has been involved with internal combustion engines and retail facilities for aviation, marine and vehicular fueling facilities for over 20 years. He worked extensively with vehicle manufacturers and conversion companies in the implementation of CNG vehicles.

Clean Fuel Connection, Inc. will provide technical assistance for the incentive program implementation in an amount not to exceed $150,000. Clean Fuel Connection, Inc. currently has two contracts for a total of $255,000 from the Clean Fuels Fund. For this contract, Clean Fuel Connection, Inc. will assist the staff in project cost-effectiveness calculations and feasibility evaluations. Ms. Enid Joffe (principal) and Ms. Lauren Dunlap have provided technical, policy and assessment assistance for the Carl Moyer program for the past three years. Both Ms. Joffee and Ms. Dunlap are knowledgeable in heavy-duty vehicle engine alternative and electric-hybrid technologies.

CALSTART, Inc. will provide outreach and technical expertise for the implementation of goods movement projects within the South Coast Air Basin under Proposition 1B in the amount of $70,000. CALSTART has demonstrated capabilities in coordinating user-groups to focus sector needs in order to implement low-emitting incentive projects effectively.

Gladstein, Neandross & Associates (GNA) will provide technical expertise in the implementation of advanced technologies for transit agencies at the Ports in an amount not to exceed $210,000. GNA currently has one contract in the amount of $50,000. GNA has partnered with energy, transit, waste management and goods movement companies to develop projects such as the use of LNG in cargo handling equipment at the Ports of Los Angeles and Long Beach, .evaluation of the feasibility of utilizing LNG in the Ports’ yard equipment, and the development of strategies to reduce emissions from construction and operations of the proposed LNG import terminal.

TIAX, LLC will also provide technical assistance for commercial low-emission and alternative fuels technologies in an amount not to exceed $250,000 for the Carl Moyer and the Goods Movement Program. TIAX, LLC has one contract under the Carl Moyer Program in the amount of $50,000. TIAX, LLC has Mr. Jon Leonard, TIAX Project Manager, is knowledgeable in heavy-duty vehicle control technologies; off-road vehicles and equipment; and state and federal programs, policies, and regulations regarding off-road and alternative vehicles.

Resource Impacts

Sufficient funds are available from the Clean Fuels Program Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program, to cover the proposed $360,000 for outside technical assistance. 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.

Sufficient funds are available in the administrative portion of the Carl Moyer Fund SB1107 Account for the total cost for the proposed awards not to exceed $350,000. The Carl Moyer SB 1107 funding allocation is approximately $34 million a year of which five percent is eligible for administrative funds.

Sufficient funds will be available in the administrative portion of the Goods Movement and School Bus program funds under Proposition 1B for the proposed awards not to exceed $450,000. AQMD has been allocated approximately $550million and $70 million under the Goods Movement and the School Bus programs under Proposition 1B, respectively. Up to five percent of these amounts will be available for administrative and outreach costs. The proposed contracts will be executed upon receipt of funds.