BOARD MEETING DATE: June 4, 2010
AGENDA NO. 10
PROPOSAL:
Execute Contracts and Amend Award under Carl Moyer Program and SOON Provision and Recognize Funds from U.S. EPA
SYNOPSIS:
On May 1 and November 6 and 20, 2009, proposals were received in response to the SOON Provision of the State In-Use Off-Road Vehicle Regulation and the “Year 11” Carl Moyer Air Quality Standards Attainment Program Solicitations, respectively. On September 11, 2009 and February 5, 2010, the Board approved Carl Moyer and SOON projects for $31,449,166. Since then, staff has worked with applicants and completed evaluation of additional projects. This action is to increase the funding amount for two existing awards for repower and execute two contracts under the Carl Moyer Program and the SOON Provision. Finally, this action is to recognize $5,000,000 from U.S. EPA to electrify diesel rubber-tired gantry cranes, install shore power infrastructure, and repower off-road diesel vehicles.
COMMITTEE:
Technology, May 21, 2010, Recommended for Approval
RECOMMENDED ACTIONS:
Authorize the Chairman to amend the following contracts with funds from the Carl Moyer Program SB 1107 Fund (32):
Orange County Waste and Recycling, originally approved on February 5, 2010, under the SOON Provision to add the replacement of an off-road vehicle for an increased amount of $104,748, and a total contract amount of up to $248,296;
P. Riley Enterprises, originally approved on September 11, 2009, under the Carl Moyer program for an increased amount of $27,003, and a total contract amount of up to $320,433.
Authorize the Chairman to execute the following contracts with funds from the Carl Moyer Program SB 1107 Fund (32):
SA Recycling for the repower of four off-road vehicles under the SOON Provision in an amount not to exceed $487,063;
S&K Grading for the repower of five off-road vehicles and for the retrofit of three of the five off-road vehicles under the Carl Moyer Program in an amount not to exceed $670,320.
Authorize the Chairman to recognize $5 million of U.S. EPA grant funds in the Carl Moyer Program Fund (32) to cosponsor the electrification of diesel rubber-tired gantry cranes, installation of shore power infrastructure, and repower of off-road diesel vehicles.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Carl Moyer Program
On May 1 and November 6 and 20, 2009, proposals were received in response to the SOON Provision and the “Year 11” Carl Moyer Program solicitations. On September 11, 2009 and February 5, 2010, the Board awarded several grants for on-road and off-road projects under these programs. Among them were awards to P. Riley Enterprises to repower three single engine scrapers for $293,430 and to Orange County Waste and Recycling (OCWR) to repower one diesel scraper for $143,548. The awards need to be modified because the cost quotations for parts and labor for the repower project submitted by P. Riley Enterprises were lower than the actual costs to repower an identical vehicle and the vehicle replacement project applied for by OCWR was originally rejected because more information was needed to evaluate the project. Since then, staff has worked with P. Riley Enterprises and OCWR to obtain the necessary information to recommend the funding increase and the replacement project for approval. In addition, staff has continued to work with other applicants and has completed evaluation of additional qualified projects that are now ready for implementation.
EPA Funds
Rubber-Tired Gantry (RTG) diesel cranes are used to hoist and move containers weighing up to 40 metric tons within storage rows or directly onto other cargo handling equipment on port terminals or rail yards. Fortunately, RTG electrification systems are commercially available and cost effective strategies for reducing most crane-related diesel emissions.
Auxiliary engines of ocean-going vessels (OGV) are used while at berth for lighting, ventilation, communication, cargo refrigeration and other on-board equipment. Auxiliary engines represent a significant source of diesel PM, NOx, and SOx emissions because most lack any emission control technology and are fueled with high sulfur content liquid fuels. To completely avoid these emissions, installation of shore power infrastructure has been successfully demonstrated for auxiliary engines on OGV hotelling at berth at the ports.
Additionally, diesel-fueled off-road vehicles, especially construction equipment, are the leading source of diesel PM and NOx emissions in the Basin. Rapid modernization of off-road fleets is one of the most important strategies to restore healthful air quality to the Basin. It is especially important because off-road vehicles can last for 20 years or longer. A proven, cost-effective strategy to reduce NOx and PM emissions from the Basin’s off-road vehicles is to repower older vehicles with new or remanufactured engines utilizing state-of-the-art low emitting engine technologies that are certified by the U.S. EPA and CARB.
AQMD has received a $5 million grant award from the U.S. EPA to cosponsor the electrification of RTG diesel cranes, installation of shore power infrastructure, and repower of off-road diesel vehicles.
Proposals
Funding Increase for Repower Projects
This action is to increase the original awards to P. Riley Enterprises and OCWR by $27,003 and $104,748, respectively from the Carl Moyer Program Fund (32). Costs for parts and labor were underestimated for the repower of P. Riley Enterprises’ scrapers. Staff believes that the increased costs are appropriate based on repower costs for scrapers of identical horsepower. In addition, the original OCWR award did not include the replacement vehicle project applied for because additional information was needed to evaluate the project. Staff has worked with OCWR staff to obtain the required additional information for the replacement project. Staff proposes that these contracts be amended to cover the additional costs totaling up to $131,751. Total NOx emissions reductions from these projects will be approximately 9 tons/year.
New Repower Projects
Since the close of the program announcement, staff has continued to work with applicants to obtain sufficient information on additional projects and proposes two repower projects under the SOON Provision and the Carl Moyer Program. SA Recycling proposes to repower four off-road vehicles from Tier 0 engines to Tier 3 engines, and S&K Grading proposes to repower five off-road vehicles from Tier 0 engines to Tier 3 engines and to retrofit three of the five vehicles with CARB verified Level III filters. Total NOx emissions reductions from these projects will be approximately 13 tons/year. The applications have been evaluated according to CARB’s Carl Moyer Program guidelines released on April 22, 2008.
EPA Funds
Finally, this action is to recognize a $5 million grant from U.S. EPA in the Carl Moyer Program Fund (32) to cosponsor the electrification of RTG diesel cranes for up to $2 million, the installation of shore power infrastructure for up to $1.6 million, and the repower of off-road diesel vehicles by allocating $1 million to complement the SOON Program as an additional incentive to cover the 15% match required under the Carl Moyer Program for repower projects. The $1 million will be available only for SOON applications submitted in response to PA#2010-04 and is available for projects for which the cost effectiveness is below $16,400 per ton of NOx reduced. Furthermore, the $1 million will be used, in combination with funds from the Carl Moyer Program, to cover up to 100% of the total repower project costs. Applicants may use the funding for SOON replacement projects in lieu of repower projects. Once the technical details of the electric crane and the shore power projects are finalized, staff will seek Board approval for them and the SOON projects for their implementation. Up to $400,000 will be available for administrative costs.
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 website (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 successful implementation of the Carl Moyer Program and the SOON provision 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 amendment of the repower contracts and the execution of the new contracts shall not exceed $1,289,134 from the Carl Moyer Program SB 1107 Fund (32).