BOARD MEETING DATE: October 2, 2009
AGENDA NO. 11

PROPOSAL:

Issue Carl Moyer Program Announcement for FY 2008-09

SYNOPSIS:

At its February 6, 2009 meeting, the Board approved the release of Program Announcement for the FY 2008-09 “Year 11” Carl Moyer Program. Over $39 million of applications were received, but due to a combination of the slow economy and the new CARB regulations, many of the projects either dropped out or were found ineligible. This action is to issue a new program announcement to fund projects and encumber the remaining “Year 11” Carl Moyer Program funds.

COMMITTEE:

Technology, September 25, 2009. Less than a quorum was present for the discussion of this item; the Committee member present communicated his concurrence and recommended that this item be forwarded for Board consideration.

RECOMMENDED ACTIONS:

Approve the issuance of Program Announcement PA #2009-06R to solicit projects for the remaining FY 2008-09 “Year 11” Carl Moyer Memorial Air Quality Standards Attainment Program funds.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

This is the eleventh year of the Carl Moyer Program (CMP) and the fifth year of the program with funding from SB 1107 and AB 923. CARB has allocated $34,387,858 to the AQMD under SB 1107 for implementation of the FY 2008-09 CMP. Of this amount, $1,719,393 is designated for administrative and outreach efforts and $32,668,465 for project funding. In addition, $5,306,768 is required from the AQMD as its local match.

At its February 6, 2009 meeting, the Board approved the issuance of the program announcement PA #2009-06 under the “Year 11” Carl Moyer Program. While over $39 million of applications were received, many of the projects dropped out or were not eligible due to a combination of the slow economy and the new CARB regulations. In order to encumber the remaining balance of the “Year 11” Carl Moyer Program funds a new solicitation is required.
 

Proposal

Staff recommends that the Board approve the issuance of program announcement PA #2009-06R, to encumber the remaining balance of the “Year 11” Carl Moyer Program funds for approximately $10 million. The CMP funding opportunity will close on November 6, 2009, at 1:00 p.m., concurrent with the PA #2010-10 for the SOON program. The evaluations and awards for these programs will be done concurrently, and a detailed account of the available funds and the project funding for the “Year 11” Carl Moyer Program will be outlined at the time of award recommendations.

All the proposed projects will be evaluated according to the CMP guidelines revised by CARB on July 1, 2009. The CMP guidelines require that the emission reductions are a minimum of 15 percent for repower or retrofit projects and 30 percent for new engines. Table 1 outlines the proposed minimum funding allocations and the maximum allowed cost-effectiveness requirements for each category and subcategory:

Table 1
Proposed Funding and Cost-Effectiveness Limits

*The above indicated amounts are the minimum amounts but not necessarily the maximum amounts of funding available to be awarded to each vehicle/equipment category in case of oversubscription in its category.

The proposed program announcement will solicit projects for on- and off-road vehicles and equipment, including refuse haulers, on-road trucks, transit buses, locomotives, marine and port applications, and other vehicles and equipment. As in previous years, AQMD will fund diesel to diesel applications only when alternative fuel engines/vehicles are not commercially available or certified by CARB. A goal of at least 40 percent is set for funding projects related to goods movement. The projects would need to meet the cost-effectiveness and all the other requirements of the program.

Proposals for all categories will be due by 1:00 pm on Friday, November 6, 2009. Staff expects to finalize the review and evaluation of the proposals and recommend awards for Board approval at the February 2010 Board meeting. The Carl Moyer program announcement is attached.
 

Program Guidelines

At its July 8, 2005 meeting, the Board approved a long-term Program Guideline for the implementation of the Carl Moyer Program in the South Coast Air Basin with continuous funding from SB 1107 and AB 923 until 2015. The proposed funding distribution for different equipment categories is made in this Board letter according to the criteria outlined in that Guideline with emphasis on the following priorities in order to achieve the highest emission reductions:

• Goods Movement (40 percent allocation)
• Environmental Justice (50 percent allocation)
• Cost Effectiveness
• Low Emission Engine / Vehicle Preference
• Early Commercialization of Advanced Technologies/Fuels
• Fleet Rules
• School Buses

Funding Distribution

As required by AB 1390, the CMP guidelines include the requirement that at least 50% of the program funds must be spent in disproportionately impacted areas. At least half the funding allocated under SB 1107 and collected under AB 923 will be awarded to projects located in disproportionately impacted areas. It has been the policy of the AQMD to allocate at least 50% of all funding available in the CMP, including roll-over funding from previous years and turnback funds, to disproportionately impacted areas.
 

Disproportionately Impacted Areas Point Ranking

The requirements of the CMP will be 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.
2. All projects will be evaluated according to the following criteria to qualify for funding as a disproportionately impacted area:
   1. Poverty Level: All projects in areas where at least 10 percent 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 either:
   2. PM Exposure: All projects in areas with the highest 15 percent of PM concentration will be eligible to be ranked in this category. The highest 15 percent of PM concentration 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 III estimates) will be eligible to be ranked in this category.

The maximum score will be comprised of 40 percent for poverty level and 30 percent 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 ranking 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 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 RFP/RFQ 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 AQMD has supported a number of activities directed to advancement of new technologies and commercialization of low-emission alternative fuel technologies. The successful implementation of the Carl Moyer Program is a direct result of these Technology Advancement activities. The vehicles and equipment funded under this program announcement will operate many years, providing long-term emissions reductions.
 

Resource Impacts

Total amount of available funds for the Carl Moyer Program under Program Announcement PA #2009-06R is approximately $10 million from the Carl Moyer Program Fund.
 

Attachment (DOC, 1.8m

Program Announcement PA #2009-06R