BOARD MEETING DATE: May 2, 2008
AGENDA NO. 6

RECOMMENDED ACTIONS:

Authorize the Chairman to

1. Modify five existing contracts with Burrtec Waste Industries, Inc. to repower ten pieces of construction equipment with Tier 3 engines instead of the originally approved Tier 1 and 2 engines for an additional funding of $169,695 from the Carl Moyer Program Fund SB1107 Account; and

2. Approve issuance of Program Announcement PA #2008-09 to solicit projects for off-road vehicles and equipment subject to the Surplus Off-Road Opt-In for NOx (SOON) provision of the CARB In-Use Off-Road Diesel Vehicle regulation.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Burrtec Contract Modification

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. At its October 6, 2006 and April 6, 2007 meetings, the Board approved five separate awards with Burrtec Waste Industries, Inc. Burrtec Waste Industries, Inc. operates and maintains County of San Bernardino solid waste disposal facilities located throughout the county. This includes both active and closed landfills, transfer stations and community collection centers. The applicant originally proposed and was awarded funding for repowering 15 pieces of off-road construction equipment in an amount not to exceed $969,596 from the Carl Moyer Program Fund SB1107 Account. These equipment included scrapers, graders, dozers and compactors. All the equipment were proposed to be repowered either with Tier 1 or 2 emission-certified engines. During the replacement process after three of the engines were delivered and installed, cleaner Tier 3 engines became available for repower. As a result, Burrtec Waste Industries is requesting a funding increase of $169,695 to install the Tier 3 engines for the remaining pieces of equipment that have not yet been repowered. This action will result in higher emission reductions than anticipated during the analyses and review process. Furthermore, the company has decided to remove two equipment from its fleet and is proposing to delete them from the contracts.
 

SOON Program Announcement

The California Air Resources Board (CARB) adopted the in-use off-road diesel vehicle regulation in July 2007. The regulation requires fleets to meet increasingly more stringent fleet average PM and NOx target emission targets or to comply with Best Available Control Technology (BACT) defined as a minimum percent turnover and PM retrofits of the fleet’s total horsepower. The state regulation also includes a provision called the Surplus Off-Road Opt-in for NOx (SOON) which allows air districts (which elect to opt-into this provision) to achieve additional NOx reductions beyond the state’s base through the use of incentive funds.

In November 2007, the Board issued Program Announcement #PA2008-01 soliciting $30 million of off-road projects for the SOON program. CARB finalized the regulation language on April 4, 2008 and made modifications to the SOON provision language, which provides that prior to April 2, 2009, the SOON Program would be voluntary. As such, staff anticipates that when Program Announcement #PA2008-01 closes on May 2, 2008, the solicitation will be undersubscribed.
 

Proposal

Burrtec Contract Modification

This action is to approve amendments of five existing contracts with Burrtec Waste Industries, Inc. in an amount not to exceed $169,695. The overall cost-effectiveness of the projects will improve due to installation of cleaner engines. Table 1 shows the detailed breakdown of the equipment that will be affected by these amendments.

Table 1. Burrtec Waste Industries, Inc.

SOON Program Announcement

Staff is recommending that the Board release Program Announcement PA #2008-09 to provide funding assistance for off-road diesel vehicle projects to achieve additional NOx emission reductions under the SOON Program. The Board’s Administrative Committee has given its initial approval recommending to set aside $120 million ($30 million each year for four years) to fund the SOON projects. Funding will be set aside from the Carl Moyer Program fund AB932 and SB1107 accounts. Funding from other sources may also be considered for funding SOON projects and will be subject to Carl Moyer guidelines. Staff is proposing to issue the Program Announcement with the remainder of the Year 10 Carl Moyer Program funds set aside by the Board. If the solicitation is oversubscribed, staff will make recommendations on the potential use of Year 11 Carl Moyer funds. All criteria, included in the original Program Announcement #PA2008-01 issued in November 2007, will be the same for this solicitation.
 

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ 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 AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ will be 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 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.
 

Benefits to AQMD

Burrtec Contract ModificationAQMD’s Clean Fuels Program has been active in funding the development and demonstration of low emission, alterative 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 Program is a direct result of these technology advancement activities. The equipment funded under these contracts will operate many years, providing long-term emission reductions. The total emission reduction anticipated by these amendments will result in over 14 tons/yr of NOx and ROG.
 

SOON Program Announcement

The SOON provision of the state rule was initiated by AQMD staff and developed jointly with CARB staff with input from industry. The program was designed to achieve an additional 12 TPD of NOx reductions beyond the reductions which would be obtained from the base rule. These reductions are critical to meeting the PM2.5 ambient air quality standard in the South Coast Air Basin by 2015, and implementation of the SOON program will ensure that AQMD meets its mandated air quality goals.
 

Resource Impacts

Burrtec Contract Modification

The total cost of the proposed contract amendment shall not exceed $169,695 from the Carl Moyer Program Fund, SB1107 Account. There are sufficient funds in the Carl Moyer Program Fund from dollars received from CARB under SB 1107.
 

SOON Program Announcement

There are no additional resource impacts as the same funding amount as described in the original Program Announcement PA #2008-01 are proposed. No additional funding is required.
 

Attachment (doc 1006kb)

Program Announcement PA #2008-09