BOARD MEETING DATE: June 4, 2010
AGENDA NO. 9

PROPOSAL:

Adopt Resolution Accepting Terms and Conditions for Proposition 1B – Goods Movement Program Grants and Approve Projects under Proposition 1B-Goods Movement Program

SYNOPSIS:

On March 25, 2010, CARB adopted the revised Proposition 1B – Goods Movement Program guidelines. This action is to adopt a resolution to enter into grant agreements with CARB under the Proposition 1B – Goods Movement Program. In March 2009, the Board approved goods movement project awards that were subsequently suspended due to unavailability of Proposition 1B funds. CARB has now asked AQMD to fund the remaining eligible Ports and intermodal rail yard truck projects as first priority and then proceed with the other project categories.  These actions are to approve: 1) Ports and intermodal rail yard truck projects for up to $3,440,000, 2) “other trucks” projects for up to $17,450,000, 3) backup projects in the “other trucks” category for any balance of unused funds or returned projects and 4) a locomotive project for up to $3,000,000. Finally, this action is to also approve LNG truck projects with AQMD funds awarded by the DOE, EPA and CEC for the combined amount of $13,169,160 plus any available funds from fall-through LNG truck projects previously approved by the Board.

COMMITTEE:

Not Applicable

RECOMMENDED ACTIONS:

Authorize the Executive Officer to

  1. Enter into a grant agreement with CARB for FY2008-09 and FY2009-10 Proposition 1B – Goods Movement Emission Reduction Programs as outlined in the attached Resolution;

  2. Execute contracts for Ports and intermodal rail yard truck projects as listed in Table 1, contingent upon CARB’s approval in an amount not to exceed $3,440,000 from the Proposition 1B – Goods Movement Program Fund (81), comprised of up to $3,240,000 in Proposition 1B funds and up to $200,000 from the AQMD funds awarded by the EPA, DOE, and CEC for natural gas trucks;

  3. Execute contracts for “other trucks” retrofit and replacement projects and a truck stop electrification project as listed in Table 2, in an amount not to exceed $17.45 million from the Proposition 1B – Goods Movement Program Fund (81).

  4. Execute contracts in rank order from the backup list as shown in Table 3, with any unused funds from the Ports and intermodal rail yard truck categories and any returned funds from projects listed in Tables 1 & 2, until the balance of funds for all truck projects in the Proposition 1B – Goods Movement Program Fund (81) is fully expended.

  5. Execute a contract with BNSF to repower four switcher locomotives in an amount not to exceed $3,000,000 from the Proposition 1B – Goods Movement Program Fund (81); and

  6. Execute contracts for natural gas truck projects in rank order as listed in Table 4, using funds awarded to AQMD by DOE, EPA and CEC, in an amount not to exceed $13,169,160 plus any of the same funds from fall-through natural gas projects previously approved by the Board, under the Proposition 1B – Goods Movement Program.


Barry R. Wallerstein, D.Env.
Executive Officer


Background

In June 2008, the Board released a program announcement to solicit eligible projects for the first year of the Proposition 1B – Goods Movement Program (FY2007-08), including projects in the categories of trucks serving Ports and intermodal rail yard facilities, other heavy-duty diesel trucks, and switcher locomotives. In March 2009, the Board approved several project awards but prior to contract executions CARB suspended the program due to the unavailability of funds. When the program funds became available, CARB asked AQMD to prioritize the projects by funding all eligible Ports and intermodal rail yard truck projects first. CARB later disbursed additional program funds to AQMD to restart the projects in the “other heavy-duty diesel trucks” and the “diesel freight locomotives” categories.

Proposal

In April 2010, CARB released a Notice of Funding Availability (NOFA) for FY2008-09 and FY2009-10 Proposition 1B-Goods Movement Program. Prior to submitting the applications to CARB, the AQMD and the two Ports held a joint community meeting to solicit public input on potential projects. AQMD also worked closely with the two Ports in identifying potential shore power and cargo handling equipment projects. On May 7, 2010, the AQMD submitted applications to CARB for Proposition 1B-Goods Movement projects totaling $500 million. As required by the application process, staff recommends the Board approve the attached resolution authorizing the Executive Officer to enter into grant agreement(s) with CARB to accept the FY2008-09 and FY2009-10 funds and administer the Proposition 1B-Goods Movement Program.

The Board at its November 2009 meeting approved funding for over 1,300 drayage truck projects under the Proposition 1B-Goods Movement. However, there were some projects that staff was unable to evaluate due to missing information in the applications. CARB asked the AQMD to proceed with collecting the missing information and reviewing these applications. This process has been completed and additional drayage truck projects have been identified for funding. Staff recommends the Board approve the projects listed in Table 1, contingent upon CARB’s final approval, in an amount not to exceed $3,440,000 from the Proposition 1B – Goods Movement Program Fund (81), comprised of up to $3,240,000 in Proposition 1B funds and up to $200,000 from the AQMD funds for natural gas trucks.

In March 2009, the Board approved contracts for projects in the “other trucks” category under Proposition 1B, contingent upon receipt of $17.45 million granted by CARB. Due to unavailability of bond funds, CARB suspended the program and instructed AQMD to not proceed with the program. CARB recently informed that funding is now available and following the re-evaluation of the projects by AQMD, it has approved the final rank list. Staff recommends the Board approve contracts for truck retrofit and replacement projects and a truck stop electrification project as listed in Table 2 in an amount not to exceed $17.45 million from the Proposition 1B – Goods Movement Program Fund (81).

In January 2010, CARB informed AQMD that the balance of unused and returned project funds from the Ports and intermodal rail yard trucks category will be re-allocated to the “other trucks” category. Staff recommends Board’s approval to execute contracts in rank order from the backup list as shown in Table 3, with any unused and returned funds from the Ports and intermodal rail yard truck categories and any returned funds from projects listed in Tables 1 & 2, until the balance of funds for all truck projects in the Proposition 1B-Goods Movement Program Fund (81) is fully expended. 

CARB had also granted $3,000,000 to the AQMD for locomotive projects under the FY2007-08 Proposition 1B-Goods Movement Program. Subsequently AQMD had issued a solicitation, for which one locomotive project application was received. CARB has recently informed that these funds are also available. Staff therefore recommends the Board approve a contract with BNSF to repower four switcher locomotives in an amount not to exceed $3,000,000 from the Proposition 1B-Goods Movement Program Fund (81).

The AQMD received a total of $19,979,160 in funding from the DOE, EPA and the CEC under the American Recovery and Reinvestment Act (ARRA) for funding natural gas trucks. Of these funds, $6,810,000 has been committed through contracts to fund 454 natural gas trucks at the Ports. In February 2010, the Board approved the release of a new solicitation for truck replacement projects under which 239 applications for natural gas trucks were received. These applications were evaluated and staff recommends Board’s approval to fund natural gas truck projects in rank order as listed in Table 4, with the remaining $13,169,160 plus any funds that may become available from fall-through projects from the 454 natural gas trucks until all the DOE, EPA and CEC grant funds are fully expended.

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 truck projects will reduce NOx, PM and other pollutant emissions in a cost-effective and expeditious manner which will help achieve the goals of the 2007 AQMP. The new vehicles funded under this program are expected to operate for many years which will provide long-term emission reduction benefits at the Ports and in the region. 

Resource Impacts

Total funding for the drayage truck replacement projects listed in Table 1 shall not exceed $3,440,000 from the Proposition 1B-Goods Movement Program Fund (81), comprised of up to $3,240,000 in Proposition 1B funds and up to $200,000 from the AQMD funds awarded by the EPA, DOE, and CEC for natural gas trucks. 

Total funding for the other heavy-duty diesel truck projects listed in Table 2 shall not exceed $17.45 million from the Proposition 1B – Goods Movement Program Fund (81).

Total funding for the locomotive project shall not exceed $3,000,000 from the Proposition 1B-Goods Movement Program Fund (81).

Total funding for the natural gas truck projects listed in Table 4 shall not exceed $13,169,160 plus any funds from fall-through natural gas truck projects previously approved by the Board with funds granted by the EPA, DOE and CEC.

Attachments (DOC, 1.4m)

  1. Resolution

  2. Table 1: Projects in the Category of “Trucks Serving Ports and Intermodal Rail Yards”

  3. Table 2: Projects in the Category of “Other Trucks”

  4. Table 3: Backup Projects in the Category of “Other Trucks”

  5. Table 4: Natural Gas Truck Projects

 

RESOLUTION NO.__ 

A Resolution of the South Coast Air Quality Management District Board Recognizing and Approving Authorities for FY2008-09 and FY2009-10 Goods Movement Emission Reduction Program (Prop 1B Program) Projects

WHEREAS, under Health & Safety Code §40400 et seq., the South Coast Air Quality Management District (AQMD) is the local agency with the primary responsibility for the development, implementation, monitoring and enforcement of air pollution control strategies, clean fuels programs and motor vehicle use reduction measures; and

WHEREAS, the AQMD is authorized by Health & Safety Code §§40402, 40440, and 40448.5 to implement programs to reduce transportation emissions, including programs to encourage the use of alternative fuels and low-emission vehicles; and to develop and implement other strategies and measures to reduce air contaminants and achieve the state and federal air quality standards; and

WHEREAS, the Board has adopted several programs to reduce emissions from on-road and off-road vehicles, as well as emissions from other equipment, including the School Bus Incentive Program and the Carl Moyer Program; and

WHEREAS, the South Coast Air Quality Management District is designated as an extreme non-attainment area for ozone and as such is required to utilize all feasible means to meet national ambient air quality standards.

THEREFORE, BE IT RESOLVED that the Board of the South Coast Air Quality Management District, State of California, in regular session assembled on June 4, 2010, does hereby authorize the Executive Officer to enter into a grant agreement with CARB, accept funds, and provide any matching funds under the fiduciary control of the AQMD for the Goods Movement Emission Reduction Program (Prop 1B Program).

BE IT FURTHER RESOLVED that the approval of a competitively ranked projects list indicating the equipment projects selected for funding and a backup list of eligible equipment projects for the Prop 1B Program shall be approved by the Governing Board and contracts between the AQMD and equipment owners executed by the Chairman.

________________________    __________________________

Date                                            Clerk of the Board 




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