BOARD MEETING DATE: November 6, 2009
AGENDA NO. 10
PROPOSAL:
Recognize Funds, Approve Additional Truck Projects, and Amend Technical Assistance Contracts under Proposition 1B Goods Movement Program
SYNOPSIS:
CARB has informed the AQMD that additional Proposition 1B-Goods Movement Program funds will soon be available. This is in addition to the $45.5 million already allocated to the AQMD this year. This action is to recognize the additional Proposition 1B Program funds and approve funding for additional LNG trucks under the second phase of the program, including applications inadvertently omitted in the original submittal. This action is to also amend contracts to secure technical assistance for implementation of the Proposition 1B Program.
COMMITTEE:
Not Applicable
RECOMMENDED ACTIONS:
Recognize up to $33 million in Proposition 1B-Goods Movement Program funds from CARB into the AQMD’s Proposition 1B-Goods Movement Program Fund (81).
Authorize the Executive Officer to execute the following contracts from the Proposition 1B-Goods Movement Program Fund (81):
Truck replacement projects listed in Table 1, which includes those applicants inadvertently omitted in the original submittal (Table 2), in the amounts of $50,000 per diesel truck and $100,000 per natural gas truck;
Natural gas truck projects that were applied for during Phase 2 of the program solicitation between July 24 through August 7, 2009 and as listed in Table 3, with $100,000 per truck from the “mixed funds”. After approval of the trucks’ ranking by CARB, $50,000 per truck will be reimbursed for these projects from the Proposition 1B-Goods Movement Program Fund (81); and
Raul Rivas (Cascade Sierra Solutions) in the amount of $50,000 for an Intermodal Rail Yard Truck based on the ranking and selection by CARB.
Authorize the Executive Officer to amend the following contracts from the Clean Fuels Fund to provide technical assistance for the implementation of the Proposition 1B-Goods Movement Program:
TIAX, in an amount not to exceed $100,000; and
Gladstein, Neandross & Associates in an amount not to exceed $100,000.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
At its July 10, 2009 meeting, the Board recognized up to $49 million from CARB for the LA/Inland Empire Corridor’s partial allocation of the first year Proposition 1B – Goods Movement Emission Reduction (Proposition 1B) Program funds. In the same action, the Board approved the release of Program Announcement #PA2010-02 to solicit replacement of pre-2003 diesel drayage trucks, granting $50,000 per eligible truck from Proposition 1B and an additional $50,000 for eligible LNG trucks from the AQMD and the Ports of Los Angeles and Long Beach. Over 1,400 applications were received, and on September 11, 2009, the Board approved contract awards for truck replacement projects contingent upon CARB’s approval of eligibility and ranking of the entire list of applicants according to the Proposition 1B Program guidelines. On October 8, 2009, CARB issued the initial ranking for these eligible projects.
Subsequent to the initial submittal of applications to CARB, staff identified an additional 19 truck replacement applications that had been inadvertently omitted. Staff worked with CARB to verify, submit and evaluate these applications such that these were eventually placed on the ranked list, to bring the total number of eligible projects to 1,358.
Additional applications were also submitted in the second phase of the Program Announcement, between July 24 through August 7, 2009. These applications were submitted in case insufficient response was received during the original two week solicitation. Although the program was heavily oversubscribed for the initial funding, the Board and the Ports committed to fund all of the natural gas trucks under this program. In order to maximize the number of LNG truck deployments, staff has also reviewed the approximately 63 LNG trucks in the second phase of applications.
Finally, CARB recently advised that new bond funds will be made available and that these funds should be used to replace the remaining applications on the ranked list. Recognizing the magnitude of this effort, CARB has also indicated they will provide compliance flexibility with the drayage truck regulation to allow recipients of Proposition 1B funds to continue operating at the Ports after December 31, 2009 with their existing trucks until they take delivery of the new truck. Recipients who have placed purchase orders by December 4, 2009 will be allowed to continue work at the Ports at least through March 31, 2010, to be clarified in a CARB program change notice/executive order, as they await their new truck. This milestone date of December 4, 2009 requires the expeditious processing of these new funds and additional truck replacement contracts.
Proposal
Staff proposes the Board recognize up to $33 million in additional Proposition 1B funds, and place the moneys in the AQMD’s Proposition 1B-Goods Movement Program Fund (81). Combined with the initial grant, these additional moneys will allow funding of the entire list of eligible applicants totaling 1,358 truck replacement projects as listed in Table 1. All of these awards are based on the same funding structure approved by the Board on September 11, 2009, namely $50,000 per diesel truck from Proposition 1B and $100,000 per LNG truck, comprised of $50,000 from Proposition 1B and $50,000 from the AQMD and the Ports.
The 48 trucks listed at the end of Table 1 are trucks requested by large motor carriers in a non-lease-to-own arrangement. These trucks have been evaluated by CARB and are eligible for funding, but they have not been ranked by CARB due to time constraints. With the availability of additional bond funds there is adequate funding to fund all the trucks regardless of their final ranking. The ranked list of 1,358 eligible projects also includes the 19 trucks, shown separately in Table 2, which were inadvertently omitted from the original list approved by the Board on September 11, 2009. These truck applications have been submitted to CARB and subsequently ranked along with the other truck applications.
Staff further requests the Board’s approval to execute contracts for the natural gas trucks that were submitted in Phase 2 of the program solicitation between July 24 through August 7, 2009, as listed in Table 3. Staff proposes using the AQMD and Ports monies (i.e., the “mixed funds”) to provide $100,000 per truck until the Proposition 1B funds are available (within the next 6-8 weeks). After approval of the trucks’ ranking by CARB, $50,000 per truck will be reimbursed to AQMD by the Proposition 1B funds. This action is necessary in order to ensure the natural gas trucks are expeditiously deployed prior to the drayage truck regulation taking effect. If all 63 trucks listed in Table 3 are funded, the total cost would be $3.2 million from Proposition 1B and $3.2 million from the AQMD and the Ports “mixed funds”. The remaining Phase 2 diesel trucks and any fall through applications will be evaluated for funding at the beginning of next year.
Under the Intermodal Rail Yard Truck grant, staff proposes to execute a contract with Raul Rivas (Cascade Sierra Solutions) in the amount of $50,000 from the Proposition 1B-Goods Program Fund (81) as approved and ranked by CARB. This application was inadvertently omitted from the list of eligible projects approved by the Board on September 11, 2009.
Finally, due to the extremely expedited schedule, the stringent requirements of the Proposition 1B-Goods Movement Program, and the large number of first-time applicants requiring assistance with the program implementation staff recommends the Board approve amending the contracts with TIAX, and Gladstein, Neandross & Associates in the amounts not to exceed $100,000 each for a total of $200,000 from the Clean Fuels Fund.
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 Air Basin. Also, staff has held several public workshops in the South Coast Air Basin, advertised in a trade journal, and has used consultants for outreach purposes.
Additionally, potential bidders may have been notified utilizing AQMD’s own electronic listing of certified minority vendors. Notices 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). 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 truck projects will reduce NOx, PM and other pollutant emissions in a cost-effective and expeditious manner which will help achieve the goals of the 2007 AQMP. The projects involving replacement of a diesel engine with an LNG engine will provide additional benefits by reducing greenhouse gas emissions by about 25%. The new vehicles funded under this program are expected to operate for many years which will provide long-term emission reduction benefits at the Ports and in the region.
Resource Impacts
All the truck replacement projects will be funded from the Proposition 1B-Goods Movement Program Fund (81) as described and approved by the Board on September 11, 2009. Trucks not previously awarded funds under the actions approved on September 11, 2009, will now receive funding at $50,000 per truck, not exceeding a total of $33 million, from the Proposition 1B-Goods Movement Program Fund.
Total funding for technical support shall not exceed $200,000 from the Clean Fuels Fund.
Sufficient funds are available from the Clean Fuels Program Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.
ATTACHMENTS (EXE, 240k)
Table 1: Proposed Truck Replacement Projects Approved as Eligible by CARB
Table 2: Proposed Additional Truck Replacement Projects Inadvertently Omitted
Table 3: Proposed Additional Phase 2 LNG Truck Replacement Projects