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BOARD MEETING DATE: September 10, 1999 AGENDA NO. 13

PROPOSAL:

Approve Projects for FY 1999-2000 AB 2766 Discretionary Fund Work Program Including Transportation Control Measure Projects, Transit and Heavy-Duty Vehicle Projects, Programmatic Outreach Consultant, Light-Duty ZEV Projects, and CEC Neighborhood EV Project

SYNOPSIS:

As part of its FY 1999-2000 AB 2766 Discretionary Fund Work Program, the MSRC issued seven RFPs seeking heavy-duty vehicle and transit bus projects, TCM projects, and a Programmatic Outreach Consultant. Three PONs were also released for additional TCM projects, a light-duty vehicle repair program, and light-duty purpose built ZEV projects. TCM and Outreach and PON proposals were due by June 29 and Heavy-Duty applications were due by July 30. At this time, the MSRC requests Board approval of Work Program projects in the following categories: Heavy-Duty Vehicles; Transit Buses; Bicycles; Video-Conferencing; ATMIS; Rideshare; Fleet VMT Strategies, Programmatic Outreach, Light-Duty Purpose Built ZEV, and the CEC Neighborhood Electric Vehicle Program. The MSRC also requests authority to adjust the project costs up to 5 percent and authority to execute agreements.

COMMITTEE:

Mobile Source Air Pollution Reduction Review Committee,
August 26, 1999, Recommended for Approved

RECOMMENDED ACTION:

1. Approve projects as specified in Attachment 1, as part of the FY 1999-2000 AB 2766 Discretionary Fund Work Program.
2. Authorize MSRC the ability to adjust up to an additional 5%, as necessary,
   the funding of individual projects included in the attachments; and authorize the MSRC to withdraw approval of individual projects in cases where bidders are not able to successfully negotiate a contract. Unused funds will return to the AB 2766 Discretionary Fund Account for distribution to future work programs.
3. Authorize the Chairman of the Board to execute agreements with the
   proposers as set forth in this Board letter and attachments for the FY 1999-2000 Work Program.

William G. Kleindienst
Chair, Mobile Source Air Pollution Reduction Review Committee

BACKGROUND

In September 1990 Assembly Bill 2766 was signed into law (Health & Safety code Sections 44220-44247) authorizing the imposition of an annual $4 motor vehicle registration fee to fund the implementation of programs exclusively to reduce air pollution from motor vehicles. AB 2766 provides that 30 percent of the annual $4 vehicle registration fee subvened to the AQMD be placed into an account to be allocated pursuant to a work program developed and adopted by the Mobile Source Air Pollution Reduction Review Committee (MSRC) and approved by the AQMD Governing Board.

At its March 12, 1999 meeting the Board approved in concept the MSRC’s Fiscal Year 1999-2000 AB 2766 Discretionary Fund Work Program which included the phased release of solicitations for the following categories:

1) Light-Duty Vehicle Programs ($3.3 Million - $3.2M of these funds are reallocated from the Zero Emission Vehicle (ZEV) Buydown funds set aside in prior Work Programs):

• Light-Duty Purpose Built Zero Emission Vehicle Program ($3M) which provides up to $5,000 per qualifying ZEV with a minimum purchase or lease of ten ZEVs for public or private entities.
• Light-Duty Automobile Repair Assistance Program ($100,000): 50% co-funding for the repair of 300 light-duty vehicles, similar to a vehicle repair program implemented by the San Diego APCD;

1) Heavy-Duty Vehicle Program ($9,600,000):

• Alternative Fuel Transit Bus Program ($6,000,0000) which through a streamlined application process provides up to $40,000 in co-funding towards the purchase of new 35/40-foot OEM clean-fuel transit buses as well as co-funding for refueling infrastructure and training.
• On-Road & Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Program ($3,400,000). Provides co-funding, through a stream-lined application process, on a first come, first serve basis for 1) new OEM on-road heavy-duty vehicles of 14,000 GVWR or greater that accrue at least 85% of their mileage within the SCAQMD, and 2) new OEM or repowered off-road vehicles, including co-funding for refueling infrastructure.
• Technical Assistance to Fleets ($200,000) – the MSRC solicited proposals from consultants to assist with outreach to fleets, application support, specification development, on-going technical assistance, and vehicle monitoring, data collection, and reporting. An award has been made for this solicitation.

1) VMT Reduction and TCM Strategies Program ($3,050,000)

• 50% co-funding for Information Technologies/Advanced Traveler Management Information Systems (ATMIS) Trip Reduction Strategies ($500,000);
• 50% co-funding for voluntary employer-based rideshare incentives ($750,000);
• 50% co-funding for fleet/business VMT reduction programs ($250,000);
• 50% co-funding for bicycle projects ($500,000);
• Co-funding for video-conferencing projects ($750,000);
• 50% co-funding for transit-oriented development (TOD) land-use projects ($300,000). This RFP was not released.

1) Programmatic Outreach ($150,000)

• The funding for EV Programmatic Outreach was reallocated to fund a consultant or consultant team who will assist the MSRC (on a task order basis) in promoting and providing outreach for current and on-going MSRC programs that currently do not have outreach coordinators. The program also includes the development of a Web Site.

The individual target funding allocations listed above may be reassigned by the MSRC based upon the MSRC’s review and evaluation of proposals received in each respective category and to allow for mid-year adjustments.

Solicitations

Solicitations for the above-mentioned categories were issued in three phases.

• On February 26, 1999, the MSRC released three Program Opportunity Notices (PON). PON 9899-B for three TCM categories, PON 9899-C for a Light-Duty Automobile Assistance Program, and PON 9899-D for Light-Duty Purpose-Built Zero Emission Vehicle Projects.
• On March 23, 1999, the MSRC released RFPs Alternative Fuel Transit Buses, On-Road/Off-Road Heavy-Duty Vehicles, and Technical Assistance to Fleets.
• On May 12, 1999 Four TCM RFPs and one Programmatic Outreach RFP were released
• The MSRC chose not to release the Transit-Oriented Development Land Use RFP during this fiscal year. Funds allocated to the category are being used to fund other FY 1999-2000 projects for which approval is sought in this Board letter. 

Outreach

In accordance with the AQMD’s Procurement Policy and Procedures, a public notice advertising these RFPs and soliciting proposals was published on two different days in twenty-five publications.

Additionally, potential bidders were identified using the AQMD’s electronic listing of certified minority vendors and the AQMD’s Purchasing mailing list. Notices announcing the RFPs were mailed to various legislative caucuses and minority chambers of commerce and business associations. RFPs were placed on the Internet at the AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and the AQMD’s 24-hour telephone message line for bidders at (909) 396-2724.

In addition to the AQMD’s standard practice indicated above, the MSRC sent brochures announcing the funding opportunities to more than 2,000 interested parties on the MSRC’s mailing list, to all cities and counties in the South Coast Air Basin, all transit agencies in the South Coast Air Basin, and to the businesses on the AQMD Transportation Department’s mailing list. 

Bidders Conferences

Approximately 400 copies of the seven RFPs released this year were mailed to interested parties by MSRC staff . RFPs were also downloaded from the AQMD’s Web Site. Another 30 RFPs were e-mailed to potential bidders by MSRC staff. To assist potential bidders MSRC staff, along with several MSRC-TAC members, held individual Bidders’ Conferences/Workshops for each RFP. Approximately 70 people attended the conferences/workshops. Bidders’ Conferences for the Transit and On-Road/Off-Road RFPs were held on March 30, 1999 at the AQMD. Bidders’ Conferences for the TCM and Programmatic Outreach RFPs were held on June 1, 1999 at the AQMD. 

Bid Evaluation

Overall sixty proposals were received in response to the RFPs. The number of proposals submitted per category is listed below. 

Per the MSRC’s Polices and Procedures, the Technical Advisory Committee (TAC) formed evaluation subcommittees to review, evaluate, score and rank the proposals, using the guidelines and evaluation criteria within each RFP. Based upon the results of the evaluation, the TAC developed its funding recommendations in the form of two lists per category. The first list includes all projects worthy of funding and the second list includes all projects not recommended funding (regardless of monies available). On August 26, 1999, the TAC presented its recommendations to the MSRC, and the MSRC received public comment from prospective bidders. By the conclusion of the August 26, 1999 meeting, the MSRC adopted the projects for its FY 1999-2000 AB 2766 Discretionary Fund Work Program.

Panel Composition 

Heavy-Duty Evaluation Subcommittee: Chair Doug Kim, representing MTA; Bill Habibe, representing OCTA; Chung Liu, representing AQMD, Daniela Fernandez, representing County of San Bernardino Board of Supervisors; Sylvia Oey, representing Air Resources Board; Diana Kotler, representing Orange County Cities; Ken Koyama, representing California Energy Commission; George Karbowski, representing MTA (as a non-scoring participant) and Cindy Sullivan, representing AQMD’s TAO (as a non-scoring participant).

Rideshare/ATMIS/Fleet VMT Evaluation Subcommittee: Chair Greg Neal, representing Riverside County; Antonio Thomas, representing AQMD; Dave Cowardin, representing Los Angeles County; Zai Abu-Bakar, representing San Bernardino Association of Governments; and Juan Perez, representing Cities of Riverside.

Bicycle/Videoconferencing: Chair Cheryl Collier, representing Southern California Association of Governments; Gretchen Hardison, representing the City of Los Angeles; Barry Dee, representing the Cities of San Bernardino; and Joyce Rosenthal, representing Cities of Orange County.

Programmatic Outreach: Chair Antonio Thomas, representing AQMD; Diana Kotler, representing Cities of Orange County; Michelle Kirkhoff, representing San Bernardino Association of Governments (SANBAG); and Marilyn Williams, representing Riverside County Transportation Commission.

ZEV/ULEV Evaluation Subcommittee – Chair Michelle Kirkhoff, representing SANBAG; John Cox, representing SCAG; Dave Cowardin, representing LA County; Dave Ashuckian, representing CEC; Melinda Bowman, representing County of Orange; Marilyn Williams, representing RCTC; and Mike Bogdanoff, representing AQMD TAO.

The MSRC’s Technical Consultant, Ray Gorski, prepared emissions reductions benefits calculations and cost-effectiveness data for the proposals for the evaluation process.

Proposal

This action is to request Board approval of the projects listed in Attachment 1. Thirty-five projects totaling $20,406,106 are recommended. In addition to the $14.5 M earmarked for these categories, the MSRC approved the use of $6.M in turnback funds for use on this work program. Recommended projects include six transit bus projects, ten on-road/off-road projects, six ATMIS projects, seven bicycle projects, two rideshare projects, one video-conferencing project, one purpose-built vehicle project, and a sole-source contract for a project with the CEC for its Neighborhood Electric Vehicle program. The MSRC has also established a back-up list for eligible transit buses totaling $9,051,844. If funds become available the MSRC may choose to fund these projects (in ranking order).

Spreadsheets for each RFP category, and individual summary sheets for recommended TCM projects are included in Attachment 1. A description of the light-duty purpose-built zero emission vehicle program and its recommended proposal, and the CEC project are described below. Overall the FY 1999-2000 Work Program reduces approximately 571,946 pounds of pollutants at an average $10,000 per ton (or $5.00 pound) cost-effectiveness.

In some cases the full amount requested by a proposer is not recommended for funding or the proposed scope of work has been modified. The MSRC states in all its RFPs that it reserves the right to approve only a portion of the proposers scope of work and/or funding request. In those cases where the proposed funding level or scope of work has been modified by the MSRC, and the proposer cannot perform the project as recommended, the MSRC requests authority to rescind the funding commitment for that proposer and retain the funds in the Discretionary Fund account.

The MSRC also requests authority to adjust the funds allocated to each project by up to 5% of a project’s recommended funding as specified in Attachment 1. The Board has granted this authority to the MSRC for all past work programs.

Light-Duty Purpose Built Zero-Emission Vehicle Program ($3 M available)

Projects were solicited for this program under PON 9899-D. Under this PON, the MSRC was seeking innovative purpose-built zero-emission vehicle (ZEV) projects that result in near-term quantifiable emissions reductions. To qualify under the PON proposed projects needed to satisfy the following requirements:

• A vehicle must be certified by CARB as a ZEV;
• Vehicles must have a gross vehicle weight rating of not greater than 8,500 lbs; Vehicles must be backed by a manufacturer’s warranty and include provisions for local repair and operation/maintenance training;
• Vehicles must comply with all applicable electrical codes and regulations, and comply with all federal, state, and local laws, ordinances, and be legal for operation on a public road.

Eligible participants included public or private entities that purchase or lease qualifying ZEVs for use in a fleet or business application. Vehicles must be operated in the SCAQMD for a minimum demonstration of three years. Vehicles must replace or be purchased in lieu of gasoline or diesel fueled light-duty vehicles. MSRC funds were awarded on a "per vehicle basis" with a not-to-exceed amount of $5,000 per vehicle. Incentives were set by the MSRC on a case-by-case basis based upon the proposed project’s emissions reductions potential and cost-effectiveness. Consideration was also given to the project’s ability stimulate and promote ZEV use within the basin and its potential to be replicated.

Recommendation - Two pre-proposals were received in response to the PON and both proposers were invited to submit a full proposal. However, only one proposer, the United States Postal Service (USPS), submitted a full proposal. The USPS’ full proposal met the requirements of the PON, and was recommended for funding by the MSRC at its August 26 meeting with a funding level of $5,000 per vehicle for 400 vehicles ($2,000,000).

Highlights of the USPS program are as follows:

• USPS intends to place 400 purpose built zero emission vehicles in the South Coast Air Basin, replacing 400 light-duty ¼ ton gasoline powered vehicles. The gasoline vehicles will be scrapped. Vehicles will be placed in Los Angeles, El Monte, Covina, Glendora, San Gabriel, La Mirada, Pico Rivera and Carson.
• Each USPS vehicle travels on the average 4,750 per year; however, due to the duty cycles of the vehicles (idling, stop and go, etc.) the emissions produced are equivalent to that of a vehicle driving 22,000 miles per year.
• Each vehicle is anticipated to cost approximately $31,700, which is about $11,400 more than the conventional gas vehicle.
• The vehicles will be placed into service for 12 or more years. Based upon the success of the program, USPS intends to deploy up to 6,000 additional vehicles over the next few years.

California Energy Commission’s Neighborhood Electric Vehicle Demonstration Program ($200,000)

The MSRC has approved the CEC’s request for MSRC participation in the CEC’s statewide demonstration of a neighborhood electric vehicle (NEV)/low speed electric vehicle (EV) demonstration program. The MSRC will enter into a sole-source contract with the CEC to provide $200,000 in co-funding for the project ($175,000 for use on demonstration projects and $25,000 for the evaluation process.) MSRC funds will only be applied to projects demonstrated in the South Coast Air Basin. The CEC will also provide $200,000 for the project.

The purpose of the NEV demonstration is to determine the potential for NEVs to substitute for conventional vehicle use in local communities, commuting to and from transit stations, surface streets and controlled environments. The CEC is proposing a two-part program. The first element will include the demonstration program and data collection, and the second element will include an independent evaluation of the acquired data to determine emission and energy benefits.

A PON seeking demonstration projects, developed by the CEC and reviewed and approved by the MSRC’s ZEV Subcommittee, has been released. Members of the MSRC-TAC will participate in the CEC’s evaluation of the proposed projects, and recommended projects will be brought before the MSRC for approval. The program will be administered by the CEC. It is anticipated that through the PON process, a minimum of two projects will be selected, one in northern California and one in the South Coast Air Basin.

Section VIII (B)(2) of the AQMD’s Procurement Policy and Procedure identifies four major provisions under which a sole-source award may be justified. This request for sole-source award is made under provision B.2.d. that supports sole-source awards when "other circumstances exist which in determination of the Executive Officer require such a waiver in the best interest of the AQMD." Specifically, B.2.d. (1): Project involving cost sharing by multiple sponsors. In this case, the MSRC has been asked to co-fund a statewide project sponsored by another government agency, the CEC. The CEC will provide administration and oversight of the program at their cost. 

Resource Impacts

The AQMD acts as fiscal administrator to the AB 2766 Discretionary Fund Program (Health & Safety Code Section 44243). Money received for this program is recorded in a special revenue fund (Fund 23), and the contracts will be drawn from this fund. These contracts will have no fiscal impact on the AQMD’s operational budget.

Attachments

1 – Work Program Summary Sheet, Individual Spreadsheets for Categories and Individual Project Summary Sheets

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