BOARD MEETING DATE: July 9, 2010
AGENDA NO. 7
PROPOSAL:
Execute Contract for FY 2009-10 “Year 12” Carl Moyer Memorial Air Quality Standards Attainment Program
SYNOPSIS:
On May 7, 2010, proposals were received in response to the program announcement issued for the “Year 12” Carl Moyer Air Quality Standards Attainment Program. This action is to execute a contract to repower 16 switcher locomotives in an amount not to exceed $10,532,035 from the Carl Moyer Program SB 1107 Fund.
COMMITTEE:
Technology, June 18, 2010, Recommended for Approval
RECOMMENDED ACTIONS:
Authorize the Chairman to execute a contract with Pacific Harbor Lines to repower 16 locomotives, contingent upon CARB’s approval, in an amount not to exceed $10,532,035 from the Carl Moyer Program SB 1107 Fund (32).
Barry R. Wallerstein, D.Env.
Executive Officer
Background
This is the twelfth year of the Carl Moyer Program and is the sixth year of the program with a long-term source of funding generated under SB 1107 and AB 923. For the FY 2009-10 “Year 12” Carl Moyer Program, CARB has allocated $26,485,801 under SB 1107 to the AQMD, comprised of $25,161,511 in project funds and $1,324,290 in administrative funds. In addition, $3,972,870 is required from the AQMD as its local match.
On February 5, 2010, the Board approved the release of Program Announcement #PA2010-06 to solicit proposals for the “Year 12” Carl Moyer Program. On May 7, 2010, the program announcement closed. A total of 77 proposals were received requesting approximately $41.7 million in funding. Staff is currently evaluating the proposals and will seek the Board’s approval in the near future. However the proposed project in this letter requires expeditious approval in order to complete the required thirteen year project life under the Carl Moyer Program and before 2024 as required by the ports.
Proposal
Staff recommends approval to execute a contract with Pacific Harbor Lines to repower 16 locomotives in an amount not to exceed $10,532,035 from the Carl Moyer Program SB 1107 Fund (32). The locomotive engines will be repowered by Caterpillar from Tier 2 to Tier 3 engines equipped with particulate traps and will reduce PM emissions to almost Tier 4 levels. This engine and trap technology on locomotives has been used extensively by Caterpillar in Europe. However, the proposed project requires a case-by-case approval by CARB due to its requirement for particulate trap verification for this specific configuration. Staff is working closely with all involved parties to obtain approval and implement the project in a timely manner so that the required 13 year project life will end by 2024 as required by the ports.
The project has been evaluated according to CARB’s Carl Moyer Program guidelines revised on March 25, 2010. Total NOx and PM reductions from the recommended project are 25.3 tons/year and 1.6 tons/year, respectively. The proposed project operates in disproportionately impacted areas under the requirements of AB 1390. This means 100% of the recommended award is in disproportionately impacted areas.
Funding Distribution
Funding for projects are recommended based on the priorities of the “Carl Moyer Program Guidelines under SB 1107 & AB 923” adopted by the Board on July 8, 2005. The priorities of the guideline are:
Goods Movement (no less than 40%)
Environmental Justice (no less than 50%)
Cost Effectiveness
Low Emission Engine/Vehicle Preference
Early Commercialization of Advanced Technologies/Fuels
Fleet Rules
School Buses
The entire recommended award for the repower and retrofit of the switcher locomotives meets the goods movement operation and the Environmental Justice requirements.
Disproportionate Impact (DI) Point Ranking
The requirements of AB 1390 are 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 were evaluated according to the following criteria to qualify for funding under DI requirements:
Poverty Level: All projects in areas where at least 10% 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 Exposure: All projects in areas with the highest 15% of PM concentration will be eligible to be ranked in this category. The highest 15% of PM concentration level is 46 micrograms per cubic meter and above, on an annual average; or
Air Toxics Exposure: All projects in areas with a cancer risk of 1,000 in a million and above (based on MATES II estimates) will be eligible to be ranked in this category.
The maximum score is 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 is not established. In this case, the poverty ranking from the adjacent on-shore areas are 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 was 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 Carl Moyer Program will provide direct emissions reductions for both NOx and PM as required by the programs. Since the vehicles and equipment funded under this program will operate for many years, the emissions reductions will provide long-term benefits.
Resource Impacts
Funding for the proposed locomotives repower project shall not exceed $10,532,035 from the Carl Moyer Program SB 1107 Fund (32).