BOARD MEETING DATE: July 10, 2009
AGENDA NO. 9

PROPOSAL:

Execute Contracts for FY 2008-09 “Year 11” Carl Moyer Memorial Air Quality Standards Attainment Program, and Issue Program Announcement for Surplus Off-Road Opt-In for NOx Provision

SYNOPSIS:

On May 1, 2009, proposals were received in response to the Program Announcement that was issued for the “Year 11” Carl Moyer Air Quality Standards Attainment Program. This action is to execute Carl Moyer Program contracts in an amount not to exceed $6,065,287. This action is also to issue a Program Announcement for the Surplus Off-Road Opt-In for NOx (SOON) provision of the state in-use off-road vehicle regulation.

COMMITTEE:

Technology, June 19, 2009. Less than a quorum was present for the discussion of this item. Committee member Wilson recused himself from this item; Committee member Yates communicated his concurrence and recommended that this item be forwarded for Board consideration.

RECOMMENDED ACTIONS:

  1. Authorize the Chairman to execute the following contracts under the Carl Moyer Program SB 1107 Fund (32):
    1. Burrtec Waste Industries for the purchase of 30 natural gas trucks in an amount not to exceed $571,975;
    2. USA Waste of California, Inc. for the purchase of 95 natural gas trucks in an amount not to exceed $1,568,100;
    3. County of Los Angeles, Department of Public Works for the purchase of 12 natural gas trucks in an amount not to exceed $115,574;
    4. City of Los Angeles, Bureau of Sanitation for the purchase of 35 natural gas trucks in an amount not to exceed $632,622;
    5. Republic Services, Inc. for the purchase of 58 natural gas trucks in an amount not to exceed $1,634,142;
    6. Palm Springs Disposal Services for the purchase of 6 natural gas trucks in an amount not to exceed $96,000;
    7. City of Santa Clarita Transit for the purchase of 7 natural gas transit buses in an amount not to exceed $247,342;
    8. Santa Monica Big Blue Bus for the purchase of 20 natural gas transit buses in an amount not to exceed $442,888;
    9. City of Carson for the purchase of 4 natural gas trucks in an amount not to exceed $7,914;
    10. Dy-Dee Service of Pasadena for the purchase of 4 natural gas trucks in an amount not to exceed $48,292;
    11. Rodriguez & Sons Trucking for the retrofit of 1 diesel truck in an amount not to exceed $26,371;
    12. Haulin’ Huls’ Truckin’ for the retrofit of 1 diesel truck in an amount not to exceed $25,971;
    13. Orozco Trucking for the retrofit of 1 diesel truck in an amount not to exceed $25,971;
    14. Benavides Trucking for the retrofit of 1 diesel truck in an amount not to exceed $23,647;
    15. Camacho Transport for the retrofit of 1 diesel truck in an amount not to exceed $25,971;
    16. Fordice Trucking for the retrofit of 1 diesel truck in an amount not to exceed $15,765;
    17. Oscar Rosso for the retrofit of 2 diesel trucks in an amount not to exceed $28,902;
    18. Irving Wiessman for the retrofit of 1 diesel truck in an amount not to exceed $25,971;
    19. Hinojosa’s Transport for the retrofit of 1 diesel truck in an amount not to exceed $25,971;
    20. ESG Trucking for the retrofit of 1 diesel truck in an amount not to exceed $24,045;
    21. Villa Park Trucking, Inc. for the retrofit of 4 diesel trucks in an amount not to exceed $93,675;
    22. Javier Rojas Trucking for the retrofit of 1 diesel truck in an amount not to exceed $25,971;
    23. American GTS for the retrofit of 2 diesel trucks in an amount not to exceed $37,674;
    24. J Elizalde Transport for the retrofit of 1 diesel truck in an amount not to exceed $25,971;
    25. Ancon Marine Services for the retrofit of 14 diesel trucks in an amount not to exceed $71,445;
    26. Best Overnite Express, Inc. for the retrofit of 17 diesel trucks in an amount not to exceed $197,117.
  1. Approve issuance of Program Announcement PA #2010-01 to solicit projects for off-road vehicles and equipment subject to the SOON provision of the CARB In-Use Off-Road Diesel Vehicle Regulation.
     

Barry R. Wallerstein, D.Env.
Executive Officer

Background

This is the eleventh year of the Carl Moyer Program and is the fifth year of the program with a long-term source of funding generated under SB 1107 and AB 923. For the FY 2008-09 “Year 11” Carl Moyer Program, CARB has allocated $29,740,049 under SB 1107 to the AQMD, comprised of $28,253,047 in project funds and $1,487,002 in administrative funds. In addition, $5,295,593 is required from the AQMD as its local match.

On February 6, 2009 the Board approved the release of Program Announcement #PA2009-06 to solicit proposals for the “Year 11” Carl Moyer Program. On

November 7, 2008 the Board had also approved the release of Program Announcement PA #2009-03 to solicit off-road projects under the SOON Provision with funding from the Carl Moyer Program SB 1107 and AB 923 Funds. On May 1, 2009 both program announcements closed. A total of 126 proposals were received under the Carl Moyer Program requesting approximately $39.1 million in funding, and a total of 27 proposals were received under the SOON Provision requesting approximately $15.4 million in funding.

Proposal

Carl Moyer Program

The new on-road alternative fuel truck purchase and diesel truck retrofit projects have been evaluated and are recommended for funding first. This is because it is the last funding opportunity for this category due to the adoption of CARB’s private fleet regulation in 2008, and the Carl Moyer Program guidelines requirement that all new truck purchase contracts must be executed by December 31, 2009, and trucks delivered by (at the latest) June 30, 2010. All other eligible categories will be recommended for funding in the near future.

This action is to approve the recommended projects, as outlined in Table 1, under the Carl Moyer Program in an amount not to exceed $6,065,287 from the Carl Moyer Program SB 1107 Fund (32). Funding eligibility of projects subject to CARB rules and compliance plans have been discussed with and approved by CARB staff.

Total NOx and PM reductions from the recommended projects are approximately 49.5 tons/year and 2.5 tons/year, respectively.

SOON Program Announcement

This action is to approve the release of the attached Program Announcement PA #2010-01 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 ($30 million each year for four years) to fund the SOON projects. Funding will 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 this Program Announcement with up to $25 million from the Carl Moyer Program SB 1107 and AB 923 Funds. There are no changes in criteria for this solicitation as compared to the most recent Program Announcement PA #2009-03 issued in November 2008.

Funding Distribution

Funding for projects has been recommended based on the priorities of the “Carl Moyer Program Guidelines under SB 1107 & AB 923” adopted by the Board on July 8, 2005. The priorities of the guideline are:

  • Goods Movement (no less than 40%)
  • Environmental Justice (no less than 50%)
  • Cost Effectiveness
  • Low Emission Engine/Vehicle Preference
  • Early Commercialization of Advanced Technologies/Fuels
  • Fleet Rules
  • School Buses

Due to the types of applications received, approximately 11% of the recommended awards satisfy the Goods Movement objective. However, with the implementation of the Proposition 1B Goods Movement Program, this objective should be satisfied.

Approximately 64% of the award dollars are recommended for projects under the Environmental Justice category in disproportionately impacted (DI) areas. In the evaluation process, staff recommended cost-effective proposals in the DI areas first with 50% of the available funding based on their ranking as described below. The remaining qualified DI proposals with all other qualified proposals were then recommended for funding based on cost effectiveness only.

Disproportionate Impact (DI) Point Ranking

The requirements of AB 1390 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 Program Announcement.
  1. 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.

The maximum score is comprised of 40% for poverty level, and 30% each for PM and toxic exposures. Special circumstances exist in some areas, such as the Ports of Long Beach and Los Angeles. Since there are no residents within the ports, poverty ranking could not be established. In this case, the poverty rankings from the adjacent on-shore areas were extended to the port since these populated areas are directly impacted by port activities.

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, the State of California Contracts Register web site, 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

The successful implementation of the Carl Moyer Program and the SOON provision will provide direct emissions reductions for both NOx and PM as required by the programs. Since the vehicles and equipment funded under this program will operate for many years, the emissions reductions will provide long-term benefits.

Resource Impacts

Funding for the Carl Moyer Program contracts shall not exceed $6,065,287, from the Carl Moyer Program SB 1107 Fund (32).

There will be sufficient funds in the Carl Moyer Program Fund. However, in case of delays in receiving funds from CARB, the contracts may be executed with a loan from the AB 923 Funds due to the time sensitivity of these projects until the receipt of SB 1107 Funds from CARB.

Attachments (EXE, 498kb)

  1. Table 1: Recommended Carl Moyer Program Awards
    Table 2: Funding Distribution of Recommended Awards
  2. SOON Provision Program Announcement PA #2010-01


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