BOARD MEETING DATE: July 10, 2009
AGENDA NO. 4
PROPOSAL:
Recognize Funds and Approve Issuance of Program Announcement for Heavy-Duty Diesel Drayage Truck Replacement Program
SYNOPSIS:
To reduce emissions from on-road heavy-duty diesel trucks associated with goods movement in and around the San Pedro Bay Ports, the AQMD, in close cooperation with the Ports of Los Angeles and Long Beach, proposes to implement an incentive funding program to replace heavy-duty diesel trucks with new diesel or alternative fuel trucks using a combination of funding sources consisting of Proposition 1B Funds, contributions from the two Ports, and a Congressional earmark grant from the US EPA. These actions are to recognize up to $49 million from CARB under Proposition 1B Goods Movement Emission Reduction Program, up to $17.5 million from the Ports of Los Angeles and Long Beach, and a $7.5 million Congressional earmark grant from EPA; and to approve issuance of a program announcement for the replacement of older heavy duty diesel drayage trucks with new diesel or alternative fuel trucks certified to meet the 2007 EPA emission standards or lower. Finally, this action is to recognize $250,000 from the Ports of Los Angeles and Long Beach for a portion of consultant support services for the implementation of this program.
COMMITTEE:
Marine Port, July 9, 2009
RECOMMENDED ACTIONS:
- Recognize up to $49 million from CARB under Proposition 1B Goods Movement Emission Reduction Program, up to $12.5 million from the Port of Los Angeles, up to $5 million from the Port of Long Beach, and $7.5 million in Congressional earmark grant from EPA, and place them into the AQMD Proposition 1B – Goods Movement Program Fund (81)
- Recognize $250,000 comprised of $125,000 each from the Ports of Los Angeles and Long Beach for a portion of consultant support services and place them into the AQMD Proposition 1B – Goods Movement Program Fund (81)
- Approve issuance of Program Announcement #PA2010-02 for replacement of heavy-duty diesel drayage trucks with new diesel or alternative fuel trucks.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Heavy-duty trucks (HDTs) are the leading source of diesel particulate matter emissions in the South Coast Air Basin. A high percentage of the Basin’s oldest and highest-emitting HDTs consist of container-hauling “drayage” trucks serving the Ports of Los Angeles and Long Beach.
The Clean Trucks Program (CTP) of the San Pedro Bay Ports Clean Air Action Plan, adopted by the Ports of Los Angeles and Long Beach in late 2006 with strong support from the AQMD, EPA and CARB, utilizes incentive funds as well as requirements on the trucking industry to reduce NOx and PM emissions from drayage operations. This program will be funded through a combination of sources, including but not limited to Proposition 1B-Goods Movement Program, EPA’s Congressional earmark grant, and funding contributions from the two Ports to replace older drayage trucks.
The AQMD has recently completed a similar project in which 132 older diesel drayage trucks were replaced with new LNG trucks using EPA grant funds combined with the AQMD’s Clean Fuels Fund, and the state’s Proposition 1B-Goods Movement “Early Grant” funds.
Proposal
Staff recommends that the Board recognize up to $49 million from CARB under the Proposition 1B-Goods Movement Program, up to $17.5 million comprised of $12.5 million from the Port of Los Angeles and $5 million from the Port of Long Beach, and a $7.5 million Congressional earmark grant from EPA, and place these funds in the AQMD’s Proposition 1B – Goods Movement Program Fund (81). Furthermore, staff recommends that the Board recognize $250,000 comprised of $125,000 each from the Ports of Los Angeles and Long Beach for a portion of consultant support services and place them in the AQMD’s Proposition 1B – Goods Movement Program Fund (81). Staff also recommends that the Board approve the issuance of the attached Program Announcement #PA 2010-02 to solicit proposals for replacement of pre-2004 heavy-duty diesel drayage trucks with new diesel or alternative fuel trucks. Before approval of the truck replacement awards, the AQMD will enter into a Memorandum of Understanding (MOU) with the Ports of Los Angeles and Long Beach to act as the administrator of the two Ports’ 2009 Proposition 1B Program, providing incentive funding for the accelerated replacement of legacy HDT fleets with new diesel or alternative fuel trucks. This program will provide up to $50,000 per truck from CARB’s Proposition 1B-Goods Movement Program funds for the purchase of a new diesel or alternative fuel truck certified at the federal 2007 emission standards of 1.20 g/bhp hr for NOx and 0.01 g/bhp hr for PM or lower standards. For alternative fuel trucks, an additional funding of up to $50,000 per truck (a total of $100,000 in incentive funds) will be provided. The additional funding will be provided through a combination of sources, including but not limited to, EPA’s Congressional earmark grant and funding contributions from the two Ports. For further financial assistance, truck owners can also take advantage of the federal Qualified Alternative Fuel Motor Vehicles tax credit of up to $32,000 per alternative fuel truck.
Eligible vehicles for the program will include Class 8 diesel trucks with Model Year 2003 and older engines and 33,001 lb or greater of Gross Combined Weight Rating (GCWR), that are involved in goods movement activities and registered in California for the past two years. Vehicle owners receiving up to $50,000 in Proposition 1B funds must commit to at least 150 visits or more per year to the San Pedro Bay Ports with the new trucks, but vehicle owners receiving up to $100,000 in Proposition 1B and additional funds must commit to at least 300 visits per year to the San Pedro Bay Ports. All eligible trucks will be evaluated and competively ranked based on criteria set forth in the latest version of the Proposition 1B-Goods Movement Program guidelines. The evaluation criteria and the funding process shall also be in compliance with applicable conditions and requirements set forth by the other funding sources, if applicable.
Outreach
In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the Program Announcement 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 the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the Program Announcement will be 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 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
The successful implementation of the proposed projects will achieve emission reductions of NOx, PM and other pollutants in a cost-effective and expeditious manner to meet the goals of the 2007 AQMP. In addition, replacement of diesel engines with LNG engines will result in a 25% reduction of greenhouse gas emissions. The vehicles funded under this program will operate many years and will provide long-term emission reductions.
Resource Impacts
This Program will be cost shared through a combination of funding sources, including Proposition 1B-Goods Movement Program funds, EPA’s Congressional earmark grant, and funding contributions from the Ports of Los Angeles and Long Beach. All the funding sources and the specific funding amounts will be described in detail at the time of the awards.
Attachment (DOC, 1.21M)
Program Announcement #PA2010-02