BOARD MEETING DATE: December 4, 2009
AGENDA NO. 11

PROPOSAL:

Execute Contracts under Carl Moyer Program and Issue Program Announcement for SOON Program

SYNOPSIS:

On September 11, 2009, the Board awarded several contracts to repower equipment under the Carl Moyer Program. The project proponents for two of the awards are requesting changes to the awards – one for a change in equipment type, and the other for repowering an additional two pieces of equipment. Staff is also recommending two additional projects for Carl Moyer Program awards. This action is to change the vehicle type for an existing award, increase the funding for an existing award for repower projects and execute two new contracts under the Carl Moyer Program and the SOON Provision. Finally, this action is to release a Program Announcement to provide funding assistance for additional NOx emission reductions from off-road equipment that may be subject to Rule 2449 - SOON Program.

COMMITTEE:

Technology, November 20, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute contracts with
   
   
   1. Brian L. Yeager, originally approved to repower one scraper on September 11, 2009, to repower one off-road vehicle for an amount not to exceed $113,726 from the Carl Moyer Program SB 1107 Fund (32);
      
      
   2. Griffith Company, originally approved to repower one off-road vehicle on September 11, 2009, to repower three off-road vehicles with an increased amount of $158,981 for a total not to exceed $200,049 from the Carl Moyer Program SB 1107 Fund (32);
      
      
   3. Mattivi Brothers Leasing for the repower of six off-road vehicles in an amount not to exceed $604,538 under the SOON Provision of the state in-use off-road vehicle regulation from the Carl Moyer Program SB 1107 Fund (32); and
      
      
   4. City of Long Beach for the replacement of six off-road vehicles in an amount not to exceed $52,000 from the Carl Moyer Program SB 1107 Fund (32), contingent on CARB required evaluation of replacement projects.
      
      
2. Issue Program Announcement #2010-04 to solicit projects for off-road vehicles and equipment subject to Rule 2449 – SOON Program.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Carl Moyer Program

On February 6, 2009, the Board approved the release of Program Announcement (PA)

#2009-06 to solicit proposals for the “Year 11” Carl Moyer Program. The Program Announcement closed on May 1, 2009, and the Board awarded grants to 40 companies at the September 11, 2009 meeting. One of the grants was awarded to Brian L. Yeager to repower one single-engine scraper for $113,726 and another was awarded to the Griffith Company to repower one single-engine scraper for $41,068 rather than the three off-road vehicles the company had applied for funding to repower. Staff recommended only the scraper under Griffith Company because the original proposal lacked sufficient information for the other two off-road vehicles. In addition, because the Program Announcement was undersubscribed, staff has been working with applicants of some of the remaining proposals to clarify or submit additional information such as hourly or fuel usage, repower cost quotations, and fleet size. This effort has resulted in two additional cost-effective repower and replacement projects. The Carl Moyer guidelines require case-by-case evaluation of all replacement projects under the traditional Carl Moyer Program.

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 emissions targets or to comply with Best Available Control Technology (BACT) defined as a minimum percent turnover and PM retrofits of a fleet’s total horsepower. The state regulation also includes a provision - the Surplus Off-Road Opt-in for NOx (SOON) - which allows air districts, who elect to opt-into this provision, to achieve additional NOx reductions through the use of incentive funds. The AQMD subsequently adopted Rule 2449 - Control of Oxides of Nitrogen Emissions from Off-Road Diesel Vehicles to implement the SOON provision.

On November 2, 2007, the AQMD issued the first Program Announcement

for $30 million under the SOON Provision and opted into this provision of the state regulation at its May 2, 2008 Board meeting. The most recent Program Announcement was issued on July 10, 2009 and closed on November 6, 2009. To provide continued access to the SOON funding and allow affected fleets sufficient time to apply, staff is recommending that a new Program Announcement be issued.

Proposals

Administrative Change

On September 11, 2009, the Board awarded a grant to Brian L. Yeager to repower one scraper, however, the applicant has since notified AQMD that this should be for one off-road vehicle. The award amount and emission reduction remain the same under the original award, and staff requests that the Brian L. Yeager contract be amended to repower one off-road vehicle for an amount not to exceed $113,726. 

Funding Increase for Repower Projects

This action is to increase the original award to Griffith Company by $158,981 from the Carl Moyer Program SB 1107 Fund (32). The original award to Griffith Company was underestimated because it was calculated based on repowering one rather than three pieces of construction equipment as listed in the application. Staff requests that the Griffith Company contract be amended to increase the total contract by $158,981 to a total not to exceed $200,049.

Additional Repower Projects

Since the close of the PA, staff has continued to work with applicants to provide sufficient information for successful emission reductions and was able to bring forward two projects to repower six off-road equipment with cleaner diesel engines under the SOON Provision. Mattivi Brothers Leasing proposes to repower three off-road vehicles powered by Tier 0 engines with Tier III engines, and the City of Long Beach proposes to replace six off-road vehicles with cleaner vehicles powered by Tier 3 engines under the Carl Moyer Program. Total NOx emission reductions from these projects will be approximately 13.07 tons/year. The application has been evaluated according to CARB’s Carl Moyer Program guidelines released on April 22, 2008.

Issue New Program Announcement

Finally, this action is to approve the release of the attached PA#2010-04 to provide funding assistance for off-road diesel vehicle projects to achieve additional NOx emission reductions under the SOON Provision. The Board’s Administrative Committee has given its initial approval recommending to set aside $120 million to fund the SOON projects. As part of the Board’s approval to release the Program Announcement, funding would be set aside from the Carl Moyer Program AB 932 and SB 1107 Funds and will be subject to the Carl Moyer Program guidelines. Staff is proposing to issue a new Program Announcement with up to $60 million from the Carl Moyer Program SB 1107 and AB 923 Funds. The Program Announcement is provided in the attachment to this letter. 

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, 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. 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 where it was 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 was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724. 

Benefits to AQMD

The successful implementation of the Carl Moyer Program and the SOON Program will provide additional emission reductions of 16.025 tons/year of NOx. Since the vehicles and equipment funded under this program will operate for many years, the emissions reductions will provide long-term benefits. 

Resource Impacts

Total funding for the amendment of the repower contracts and the execution of the new contracts shall not exceed $970,313 from the Carl Moyer Program Fund, SB 1107 Account. There are sufficient funds in the Carl Moyer Program Fund for these activities.  

Attachment (DOC, 951k)

SOON Program Announcement PA #2010-04