BOARD MEETING DATE: October 2, 2009
AGENDA NO. 13
PROPOSAL:
Execute Contract with New Fleets for Off-Road Emissions Reduction Showcase Program
SYNOPSIS:
On October 5, 2007, the Board approved a $1.2 million project to retrofit selective catalytic reduction systems and diesel particulate filters on off-road construction equipment owned by multiple fleet operators. The project presented to the Board identified specific fleets that would participate in the project. One of the identified fleet operators will not be able to participate in the program as a result of the recent economic downturn. This action requests to modify the project to engage new fleet operators in the program and execute a contract with Griffith Company and/or Sanitation Districts of Los Angeles County for a combined total amount not to exceed $232,900 from the Clean Fuels Fund.
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:
Authorize the Chairman to execute a contract with Griffith Company and/or Sanitation District of Los Angeles County for a combined total amount not to exceed $232,900 from the Clean Fuels Fund (Fund 31).
Barry R. Wallerstein, D.Env.
Executive Officer
Background
On October 5, 2007 the Governing Board approved to execute contracts totaling $1,245,750 with eleven different off-road fleet operators. The contracts with the fleet operators would demonstrate the reliability and emissions reduction potential of NOx and PM emission reduction technologies on off-road equipment operated in the South Coast Air Basin. The off-road equipment included vehicles such as scrappers, excavators, dozers, loaders, backhoes, crawler tractors and forklifts operated by diesel engines. The scope of the project includes the design, development and demonstration of selective catalytic reduction (SCR) and diesel particulate filter (DPF) technologies on diesel powered construction equipment.
On March 2, 2007, the Mobile Source Air Pollution Reduction Review Committee (MSRC) issued a Program Announcement for owners of off-road diesel equipment. The announcement resulted in 21 applications with a total of 230 pieces of off-road equipment selected. The program fully exhausted the list of applicants, such that every applicant was chosen to participate in the program.
Altfillisch Contractors Inc. (ACI) was one of the participating fleets identified to receive $232,900 for SCR and DPF retrofits on 6 vehicles in the original award. However, ACI has declined to participate in the program due to current economic conditions. The current economic climate has significantly reduced the utilization of the vehicles in their fleet. The reduction in vehicle utilization has caused ACI to either idle or relocate vehicles outside of the South Coast Air Basin.
Proposal
The proposed action requests to substitute new fleet operators in place of ACI and execute a contract(s) with Griffith Company and/or Sanitation District of Los Angeles County for a combined total amount of $232,900 to retrofit up to 6 vehicles. Griffith Company and the Sanitation District of Los Angeles County were respondents to the original Program Announcement.
Griffith Company and the Sanitation District of Los Angeles County were selected as new fleet operators for this funding because they both have sufficient utilization of their equipment. Sufficient vehicle utilization was an essential requirement for demonstrating the effectiveness and durability of SCR and DPF emission reduction technologies on off-road construction equipment. The equipment utilization criteria was established through outreach efforts by the California Air Resources Board. Their outreach efforts exhausted the initial respondents from the original project solicitation. The majority of the initial respondents are also suffering similar hardships as ACI. These hardships prevent the majority of the initial respondents from committing additional vehicles to participate in a demonstration program.
The proposal intends to provide flexibility in the selection of the equipment that will be retrofitted between the two fleet operators. The flexibility would allow the Sanitation District of Los Angeles County to retrofit additional vehicles if Griffith Company is unable to retrofit their identified pieces of equipment.
Benefits to AQMD
The proposed project is included in the Technology Advancement Office Clean Fuels Program 2009 Plan Update under the category, “Emissions Control Technologies: Develop and Demonstrate Advanced Aftertreatment Technologies.” The proposed project supports the implementation of near-term emission control technology that could potentially reduce NOx and PM emissions from diesel-powered construction equipment by more than 80 percent, and help the AQMD to attain its Clean Air goals.
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 has been 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). Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.
Resource Impacts
This action will not create an additional financial commitment since these funds were initially awarded in a previous Board action.
Sufficient funds are available in the Clean Fuels Fund, which is established as special revenue 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.