BOARD MEETING DATE: February 5, 2010
AGENDA NO. 14
PROPOSAL:
Amend Contract 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 as part of an Off-Road Emissions Reduction Showcase Program. Two of the Board-approved fleet operators will not be able to participate in the Program as a result of the recent economic downturn. This action is to modify the project to expand the number of projects with the Sanitation Districts of Los Angeles County for a total amount not to exceed $196,150 from the Clean Fuels Fund. Additionally, this action requests to provide the Executive Officer the authority to reallocate funding amongst the Board-approved fleet operators in the Program, should there be further changes in their participation.
COMMITTEE:
Technology, January 22, 2010, Recommended for Approval
RECOMMENDED ACTIONS:
- Authorize the Chairman to amend the contract with the Sanitation Districts of Los Angeles County for a total amount not to exceed $196,150 from the Clean Fuels Fund (Fund 31); and
- Authorize the Executive Officer to reallocate program funding amongst the Board-approved fleet operators participating in the Off-Road Emissions Reduction Showcase program, in the event that participation of fleet operators in the Program changes.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
On October 5, 2007, the Board approved the execution of contracts totaling $1,245,750 with 11 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.
Albert W. Davies Inc. (Davies) and Reed Thomas Co. Inc. (Reed) were two of the participating fleets identified to receive a total of $196,150 for SCR and DPF retrofits on six vehicles in the original award. These companies, however, are unable to participate in the Program due to current economic conditions which have resulted in significantly reduced utilization of the vehicles in their fleet causing them to sell, idle or relocate vehicles outside of the South Coast Air Basin. Staff has been in discussions with CARB staff, who is overseeing the technical elements of the Showcase Program, regarding potential substitute vehicles.
Proposal
The proposed action is to amend the contract with the Sanitation Districts of Los Angeles County as a substitute for the equipment that will no longer be retrofitted at Davies and Reed. The contract with the Sanitation Districts of Los Angeles County would retrofit up to six vehicles for a total amount of $196,150. The Sanitation Districts of Los Angeles County was a respondent to the original Program Announcement and currently is demonstrating DPF retrofits on 4 off-road vehicles.
The Sanitation Districts of Los Angeles County was identified by CARB to participate in the Program since they 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. CARB has discussed vehicle utilization with other participants from the original project solicitation. The majority of the initial participants are also suffering similar economic downtimes as Reed and Davies. These economic hardships prevent the majority of the participants from committing additional vehicles to participate in the demonstration program.
This proposed action would also provide the Executive Officer the authority to reallocate funding amongst the Board-approved fleet operators participating in the Showcase Program, in the event that additional fleet operators indicate that they are unable to participate. This authority would allow the Program to continue with minimal interruption should additional fleet operators withdraw from the Program.
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.
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. Demonstration of SCR and DPF retrofit technologies will provide additional support in future retrofit technology development for on-road vehicles in terms of enhanced durability and effectiveness.