BOARD MEETING DATE: February 5, 2010
AGENDA NO. 17
PROPOSAL:
Adopt Resolution Recognizing Funds and Accepting Terms and Conditions for FY 2009-10 Carl Moyer Program Award and Issue Carl Moyer Program Announcement for FY 2009-10
SYNOPSIS:
These actions are to adopt a resolution recognizing $34,315,441 in Carl Moyer Program grant awards from CARB under SB 1107 with its terms and conditions for FY 2009-10 and to approve the release of a Program Announcement to provide incentive funding for low-emitting on- and off-road vehicles and equipment for the FY 2009-10 “Year 12” Carl Moyer Program.
COMMITTEE:
Technology, January 22, 2010, Recommended for Approval
RECOMMENDED ACTIONS:
Approve the attached resolution recognizing up to $34,315,441 from CARB, and upon receipt, place these funds in the Carl Moyer Program SB 1107 Fund and accept the terms and conditions of the FY 2009-10 Carl Moyer Grant award; and
Approve issuance of Program Announcement PA #2010-06 to solicit projects for the FY 2009-10 “Year 12” Carl Moyer Memorial Air Quality Standards Attainment Program.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
The Carl Moyer Memorial Air Quality Standards Attainment Program (CMP) provides funds on an incentive basis for the incremental cost of purchasing cleaner than required engines and equipment. Eligible projects include cleaner on- and off-road vehicles, marine vessels, locomotives, and agricultural engines, as well as forklifts, airport ground support equipment and auxiliary power units.
This is the twelfth year of the CMP and the sixth year of the program with funding from SB 1107 and AB 923. CARB has allocated $34,315,441 to the AQMD under SB 1107 for implementation of the FY 2009-10 CMP. Of this amount, $1,715,772 is designated for administrative and outreach efforts and $32,599,669 for project funding. In addition, $5,295,593 is required from the AQMD as its local match funding, which is from
AB 923.
Proposal
Staff recommends the Board recognize the $34,315,441 from CARB and approve the issuance of Program Announcement #2010-06, for approximately $20 million from the Carl Moyer Program SB 1107 and AB 923 Funds. The remaining balance of the “Year 12” funds will be allocated to projects under the SOON provision. After project evaluations and calculation of the funding amounts for eligible projects, a detailed accounting of available funds from the “Year 12” Carl Moyer Program Fund, including earned interest and the split between the SB 1107 and the AB 923 funds, will be outlined at the time of award recommendations. If additional funds become available by the time of award approval, more projects will be awarded up to the total amount of funds available.
All proposed projects will be evaluated according to the CMP guidelines released by CARB in April 2008. The CMP guidelines require that the emission reductions be a minimum of 15 percent for repower or retrofit projects and 30 percent for new engines. Staff proposes more stringent criteria for cost-effectiveness of forklift projects based on experience derived from past solicitations. Table 1 attached outlines the proposed minimum funding allocations and the maximum allowed cost-effectiveness requirements for each category and subcategory.
The proposed program announcement will solicit projects for on- and off-road vehicles and equipment, including purchases and repower projects subject to case-by-case approvals by CARB for on-road vehicles such as refuse haulers, trucks and transit buses. Proposals are also being solicited for 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 except for emergency vehicles. Approval of emergency vehicle applications will be on a case-by-case basis. 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 p.m. on Friday, May 7, 2010. Staff expects to finalize the review and evaluation of the proposals and recommend awards for Board approval in the September and October 2010 Governing Board meetings, contingent upon receiving the required funds from CARB. The Carl Moyer Program Announcement is included as Attachment 2.
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.
All projects must qualify for the Carl Moyer program by meeting the cost effectiveness limits established in the program announcement.
All projects will be evaluated according to the following criteria to qualify for funding as a disproportionately impacted area:
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
PM 2.5 Exposure: All projects in areas with the highest 15 percent of PM 2.5 concentration measured within a 2 km grid will be eligible to be ranked in this category. The highest 15 percent of PM2.5 concentration is 19.01 micrograms per cubic meter and above, on an annual average, or
Air Toxics Exposure: All projects in areas with a cancer risk of 865 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 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.
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
Program Announcement #2010-06 is targeting approximately $20 million for projects in the categories outlined in Table 1 with the “Year 12” funds recognized in this action. There are sufficient funds in the Carl Moyer Program SB 1107 and AB 923 Funds for these activities.
Attachments (EXE,1.3m)
Table 1: Proposed Funding and Cost-Effectiveness Limits
A Resolution of the South Coast Air Quality Management District Board Recognizing Funds and Accepting the Terms and Conditions of the 2009-10 Carl Moyer Grant Award
Program Announcement #2010-06