BOARD MEETING DATE: September 5, 2008
AGENDA NO. 9

PROPOSAL:

Recognize Funds from CARB and Execute Contracts Under Carl Moyer Multi-District Program and the Surplus Off-Road Opt-In for NOx Provision of the State In-Use Off-Road Vehicle Regulation

SYNOPSIS:

CARB has allocated $1,838,865 to the AQMD under the “Year 10” Carl Moyer Multi-District Program. This action is to recognize $1,838,865 from CARB and execute multi-district contracts for projects selected by CARB in an amount not to exceed $1,751,300. The remaining balance of $87,565 is designated for administrative costs. This action is also to execute contracts under the Surplus Off-Road Opt-In for NOx (SOON) provision of the state in-use off-road vehicle regulation in an amount not to exceed $1,251,818 from the Carl Moyer Program Fund SB 1107 Account.

COMMITTEE:

Technology, July 25, 2008, Recommend for Approval

RECOMMENDED ACTIONS:

1. Recognize $1,838,865 from CARB under the “Year 10” Carl Moyer Multi-District Program and place the funds in the Carl Moyer Program Fund SB 1107 Account.

2. Authorize the Chairman to execute contracts under the Carl Moyer Multi-District Program from the Carl Moyer Program Fund SB 1107 Account with the following entities, consistent with the proposals they submitted:
1. Foss Maritime Company for the repower of 6 marine engines in an amount not to exceed $795,262.
2. Peed Equipment for the repower and retrofit of 4 off-road engines in an amount not to exceed $700,066.
3. Coach America for the retrofit of 7 on-road heavy-duty vehicles in an amount not to exceed $161,053.
4. Great Escape for the repower of a marine vessel in an amount not to exceed $48,917.
5. B&B Heavy Equipment for the retrofit of an on-road heavy-duty vehicle in an amount not to exceed $20,860.
6. Superior Ready Mix Concrete for the retrofit of 2 vehicles in an amount not to exceed $25,142.

3. Authorize the Chairman to execute contracts under the SOON Provision of the state in-use off-road vehicle regulation from the Carl Moyer Program Fund SB 1107 Account with the following entities, consistent with the proposals they submitted:
1. D&K Elliott Equipment Rental for the repower of 1 loader in an amount not to exceed $105,495.
2. Miller Blade for the repower of 1 grader in an amount not to exceed $88,362.
3. Murray Company for the repower of 1 loader in an amount not to exceed $23,375.
4. Fastrack Rentals for the repower of 1 scraper in an amount not to exceed $96,801.
5. J.K. Excavation and Grading for the repower of 2 loaders in an amount not to exceed $185,800.
6. Mahaffey Drilling for the repower of 2 drill rigs in an amount not to exceed $123,056.
7. Dan Copp Crushing for the repower of 7 loaders in an amount not to exceed $628,929.

 

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 is the fourth year of the program with a long-term source of funding generated under SB 1107 and AB 923. CARB administers ten percent of the funds generated under SB 1107 for multi-district projects, where it evaluates and selects the projects through its annual public solicitation and assigns the selected projects to air districts for their implementation.

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. The program announcement was undersubscribed and all the qualified projects were recommended for funding on July 11, 2008. A new program announcement has been re-issued with the remaining balance of the available funds.

Proposal

Carl Moyer Multi-District Program

This action is to recognize $1,838,865 from CARB for “Year 10” Carl Moyer multidistrict projects and place the funds in the Carl Moyer Program Fund SB 1107 Account, and execute contracts for projects evaluated and selected by CARB as outlined in Table 1, in an amount not to exceed $1,751,300. In addition, CARB has allocated $87,565 from the total funding for administrative costs of these projects.

Total NOx and PM reductions from the recommended projects are approximately 96 tons/year and 3.66 tons/year, respectively.

SOON Provision

Since the SOON provision program announcement was undersubscribed, staff has evaluated the off-road equipment applications that were submitted under the Carl Moyer program announcement that closed the same date as the one for the SOON provision, and is recommending to move the qualified applications for funding to the SOON Provision. This action is therefore to approve the recommended off-road repower projects as outlined in Table 2, under the SOON provision of the state in-use off-road vehicle regulation in an amount not to exceed $1,251,818, from the Carl Moyer Program Fund, SB 1107 Account.

Total NOx reductions from the recommended projects is approximately 16.7 tons/year.

The applications have been evaluated according to CARB’s Carl Moyer Program guidelines released on April 22, 2008. 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.

Disproportionate Impact (DI) Point Ranking

The requirements of AB 1390 for projects located in disproportionately impacted areas 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:
   1. 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
   2. 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
   3. 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.

Approximately 35% of the projects under the SOON provision are in disproportionately impacted areas. However, since 89% of the Carl Moyer projects with much larger amount of funding awarded at the July 11, 2008 meeting were in disproportionately impacted areas, then the requirements of AB 1390 are met by a large margin. The projects under the Carl Moyer Multi-District Program were evaluated and selected by CARB.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, for funds under the SOON provision, 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 the 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 Multi-District Program projects shall not exceed $1,751,300 from the Carl Moyer Program Fund, SB 1107 Account.

Funding for the SOON Provision projects shall not exceed $1,251,818 from the Carl Moyer Program Fund, SB 1107 Account.

Table 1: Recommended Carl Moyer Multi-District Program Awards

Table 2: Recommended SOON Provision Awards