BOARD MEETING DATE: May 1, 2009
AGENDA NO. 8

PROPOSAL:

Execute Contracts for Rule 2202 Air Quality Investment Program

SYNOPSIS:

At its February 1, 2008 meeting, the Board approved release of an RFP to solicit proposals to meet Rule 2202 AQIP emission reduction targets. Proposals for the funding opportunity have been reviewed. This action is to execute contracts funding AQIP projects in an amount not to exceed $1,606,581.

COMMITTEE:

Mobile Source, April 17, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Chairman to execute contracts with the following entities for a total amount not to exceed $1,606,581 from the Rule 2202 AQIP Special Revenue Fund:

1. Air Pollution Control Management Inc. to generate emission reductions by scrapping old vehicles under Rule 1610 in an amount not to exceed $250,000;
2. AQMS Automotive, LLC to generate emission reductions by scrapping old vehicles under Rule 1610 in an amount not to exceed $250,000;
3. Pick Your Part Auto Wrecking to generate emission reductions by scrapping old vehicles under Rule 1610 in an amount not to exceed $250,000;
4. Sysco Food Services LA to replace 28 Heavy-Duty diesel trucks with LNG Heavy-Duty trucks in an mount not to exceed $350,000;
5. Harbor Dockside, Inc. to repower marine vessel Aggressor with two new Tier 2 engines in an amount not to exceed $131,581; and
6. Disneyland Resort to generate emission reductions by replacing the existing gasoline engines with gasoline/electric systems in 121 Autopia attraction vehicles in an amount not to exceed $375,000.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Rule 2202 - Air Quality Investment Program (AQIP) allows affected employers to participate by electing to invest in an AQMD-administered restricted fund. Investment can be either $60 annually per employee reporting to the worksite during the 6:00 a.m. to 10:00 a.m. peak window, or $125 triennially per employee. Upon registering under this option and submitting the designated investment amount, an employer is considered to be in compliance with the Rule and there is no need for the employer to take further action to reduce mobile source emissions. The collected monies are used to fund alternative mobile source emission reduction strategies that reduce mobile source emissions at a more cost-effective rate which could potentially result in greater overall emission reductions than would otherwise have been achieved by implementing a rideshare program.

Forty-eight employers participated in AQIP during the second half of calendar year 2008, which ended December 31, 2008 The total amount of AQIP funds received during this period was $479,000, which includes both annual and triennial participants. An additional $802,399 from the previous semi annual period and $920,976 from projects declined, de-obligated or expired (see Attachment 1, Table 4) are also available for a combined total of $2,178,425.
 

Proposal Evaluation

Attachment 2 provides a summary of the emission reduction targets and the emission reduction credit balance. Attachment 3 provides a summary of the eight proposals received and the requested funds, which ranged from $124,315 to $1,000,000.

According to the February 1, 2008 revision of the RFP (#2008-13), the proposals were divided into four different categories as listed in Attachment 4. This attachment provides an overall summary of the proposals by category, listing the proposals received, funds requested, total proposal costs, and emission reductions expected from each proposal. All proposals were reviewed and scored based on the information in the proposal as submitted to the AQMD. The proposals were scored according to the procedures described and ranked by total score as shown in Attachment 5.
 

Selection Criteria

The proposals were scored collectively by overall cost-effectiveness for a combination of VOC, NOx and CO emissions (with the most cost-effective proposal receiving a score of 100) and then divided into separate categories and ranked by total score within each specific category as provided in the RFP. Staff recommends six proposals from four different categories for funding and retaining the balance of the funds for the upcoming semiannual solicitation. These projects will generate emissions reductions well in excess of the emission reduction target for the current semiannual period.

The following proposals are recommended for approval (as detailed in Attachment 6):

APCM proposes to generate emission reductions by scrapping old vehicles under Rule 1610. The cost-effectiveness of this project is $2.163 per pound. (Recommended for partial funding; ranked first in its category.)
 

AQMS Automotive, LLC proposes to generate emission reductions by scrapping old vehicles under Rule 1610. The cost-effectiveness of this project is $2.362 per pound. (Ranked second in its category.)
 

Pick Your Part Auto Wrecking proposes to generate emission reductions by scrapping old vehicles under Rule 1610 at a cost-effectiveness of $2.162 per pound. (Recommended for partial funding; Ranked third in its category.)
 

Sysco Food Services LA proposes to reduce emissions by replacing 28 HD diesel trucks with LNG HD trucks at a cost-effectiveness of $2.51 per pound over the life of the project. (Recommended for funding; ranked second in its category.)
 

Harbor Dockside, Inc. proposes under option 2 to repower marine vessel Aggressor with two Tier 2 engines. The cost-effectiveness of this proposal is $5.10 per pound. (Recommended for funding; only proposal in its category.)
 

Disneyland Resort proposes to generate emission reductions by replacing existing gasoline engines Disneyland Resort Autopia attraction vehicles with gasoline/electric systems at a cost-effectiveness of $2.96 pound over the life of the project. (Recommended for funding to showcase the electrically powered drive train.)
 

Benefits to the AQMD

Table 1 shows the anticipated emission benefits.

TABLE 1
Proposals Recommended for Funding
Anticipated Emission Reductions
(Pounds/Year)

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 have been 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 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.
 

Resource Impact

Total cost of expenditure for the proposed projects and implementation support shall not exceed $1,606,581 from the Rule 2202 Air Quality Investment Program Special Revenue Fund. Table 2 provides the recommended funding for each project.

TABLE 2
Proposals Recommended for Funding

Sufficient funds, $2,178,425, are in the Rule 2202 Air Quality Investment Program Special Revenue Fund as shown in Attachment 1, Table 5.
 

Attachments (DOC, 185k)

1. AQIP Funding and Participation
2. Summary of Emission Reduction Targets and Credit Balances
3. Summary of AQIP Proposals Received
4. Summary of Proposals by Type
5. Summary of Proposal Ratings