BOARD MEETING DATE: February 6, 2009
AGENDA NO. 3

PROPOSAL:

Execute Contracts for Surplus Off-Road Opt-In for NOx Provision of State In-Use Off-Road Vehicle Regulation

SYNOPSIS:

On November 7, 2008, proposals were received in response to the Program Announcement that was issued for the Surplus Off-Road Opt-In for NOx (SOON) provision of the state in-use off-road vehicle regulation. This action is to execute contracts under the SOON Provision with funds from the Carl Moyer Program Fund.

COMMITTEE:

Technology, January 23, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

A. Authorize the Chairman to execute the following contracts under the SOON Provision from the Carl Moyer Program Fund SB 1107 Account with the following entities:

1. County Sanitation District of Los Angeles for the repower of 1 grader, 5 refuse compactors and 3 dozers in an amount not to exceed $1,036,261;
2. Robertson’s Ready Mix for the repower of 4 loaders, 3 dozers and 4 graders in an amount not to exceed $1,163,801;
3. Jagur Tractor for the repower of 2 dozers in an amount not to exceed $230,290; and
4. Leko Construction for the repower of 4 loaders and 1 excavator in an amount not to exceed $340,891.

B. Authorize the Chairman to execute a contract with Larry Jacinto Construction for the repower of 1 dozer under the SOON Provision in an amount not to exceed $215,957 from the Carl Moyer Program Fund comprised of $206,820 from the SB 1107 Account and $9,137 from the Carl Moyer Program Fund interest.

C. Authorize the Chairman to execute a contract with L.D. Anderson for the repower of 4 dual engine and 1 single engine scrapers, 1 grader and 1 dozer under the SOON Provision in an amount not to exceed $1,308,145 from the Carl Moyer Program Fund interest.

D. Authorize the Chairman to execute the following contracts under the SOON Provision from the Carl Moyer Program Fund AB 923 Account with the following entities:

1. Mr. Crane, Inc. for the repower of 1 crawler crane in an amount not to exceed $112,010;
2. Platinum Equipment, Inc. for the repower of 3 dozers and the replacement of 2 dozers in an amount not to exceed $598,908;
3. Post Company Grading for the repower of 4 dual engine scrapers in an amount not to exceed $794,250; and
4. D&K Elliott Equipment Rental for the replacement of 1 loader in an amount not to exceed $137,261.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

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 that 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 first program announcement 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. Since the program announcement was undersubscribed, a subsequent program announcement (PA #2008-09) was issued that closed on November 7, 2008.
 

Proposal

This action is to approve the recommended off-road projects, as outlined in Table 1, under the SOON Provision of the state in-use off-road vehicle regulation in an amount not to exceed $5,937,774 from the Carl Moyer Program Fund, comprised of $2,978,063 from the SB 1107 Account, $1,642,429 from the AB 923 Account, and $1,317,282 from the Carl Moyer Program Fund interest.

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, and all the qualified projects have been recommended for awards with NOx reductions totaling 83.6 tons/year.

In summary, a total of $23,021,339 has been awarded to off-road projects under the SOON Provision’s first year funding. The percentage of projects in disproportionately impacted areas also by far exceed the 50% minimum requirement by AB 1390, as 78% of the $25.4 million in Carl Moyer projects that were approved on October 3, 2008, were already in disproportionately impacted areas.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, 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 technologies. The successful implementation of the SOON Provision is a direct result of these technology advancement activities. The vehicles and equipment funded under this program will operate many years and will provide long-term emissions reductions.
 

Resource Impacts

Funding of the recommended projects under the SOON Provision shall not exceed $5,937,774 from the Carl Moyer Program Fund, comprised of:

$2,978,063     SB 1107 Account

$1,642,429     AB 923 Account

$1,317,282     Carl Moyer Program Fund interest
 

Attachment

Table 1 – Recommended Awards under the SOON Provision

Table 1: Recommended Awards under the SOON Provision