BOARD MEETING DATE: October 1, 2010
AGENDA NO. 14

PROPOSAL:

Execute Contracts for FY 2009-10 “Year 12” Carl Moyer Program and SOON Provision, Amend Carl Moyer Program Awards and Issue Program Announcement for SOON Provision

SYNOPSIS:

On May 7 and June 4, 2010, proposals were received in response to the Program Announcements that were issued for the “Year 12” Carl Moyer Program and the SOON Provision, respectively. These actions are to execute contracts under the Carl Moyer Program and the SOON Provision in an amount not to exceed $27,447,808 from the Carl Moyer Program, to amend Carl Moyer Program awards, and to issue a new Program Announcement to provide funding assistance for off-road equipment subject to the SOON Provision.

COMMITTEE:

Technology, September 24, 2010. Less than a quorum was present for the discussion of this item; Committee Chair Gonzales recused herself. The Committee Members present expressed their concurrence that this item be recommended for approval by the Board.

RECOMMENDED ACTIONS:

  1. Authorize the Chairman to execute the following Carl Moyer Program contracts with funds from the Carl Moyer Program AB 923 Fund (80) for a total up to $6,962,524:

    1. Summit Blade Rental for the repower of 1 off-road vehicle in an amount not to exceed $42,192;

    2. Kassel Contracting for the repower of 2 off-road vehicles in an amount not to exceed $275,146;

    3. D.L. Wiest Enterprises for the repower of 1 off-road vehicle in an amount not to exceed $123,670;

    4. S&K Grading for the repower of 1 off-road vehicle in an amount not to exceed $91,194;

    5. U.S. Water Taxi for the repower of 1 off-road vehicle in an amount not to exceed $87,367;

    6. MBA Grading and Demolition for the repower and retrofit of 5 off-road vehicles in an amount not to exceed $671,462;

    7. BV Construction for the repower and retrofit of 2 off-road vehicles in an amount not to exceed $240,601;

    8. B&D Equipment Rental for the repower and retrofit of 6 off-road vehicles in an amount not to exceed $624,997;

    9. B&D Construction for the repower and retrofit of 1 off-road vehicle in an amount not to exceed $161,597;

    10. Sea Bass Charters for the repower of 1 auxiliary engine of a marine vessel in an amount not to exceed $53,680;

    11. Bass Family Sportfishing for the repower of 2 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $214,160;

    12. Mardiosa Sportfishing for the repower of 2 main engines of a marine vessel in an amount not to exceed $149,360;

    13. Pacific Adventure Tours for the repower of 2 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $223,760;

    14. St. Joseph, Inc. for the repower of 1 main and 2 auxiliary engines of a marine vessel in an amount not to exceed $229,263;

    15. Premier Sportfishing for the repower of 2 main and 2 auxiliary engines of a marine vessel in an amount not to exceed $234,160;

    16. Fury Sportfishing for the repower of 2 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $139,658;

    17. Malibu Pier Sportfishing for the repower of 1 main engine of a marine vessel in an amount not to exceed $114,160;

    18. Mark Podoll for the repower of 1 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $128,560;

    19. Scott Honaker for the repower of 1 main engine of a marine vessel in an amount not to exceed $114,160;

    20. Western Fish Company for the repower of 1 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $107,760;

    21. David H. Harvey for the repower of 3 main and 2 auxiliary engines of a marine vessel in an amount not to exceed $241,280;

    22. Greater Pacific Fish Company for the repower of 1 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $130,160;

    23. Marina Del Rey Sportfishing for the repower of 1 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $100,560;

    24. Sea Angler Sportfishing for the repower of 2 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $156,560;

    25. Dreamer Sportfishing for the repower of 2 main engines of a marine vessel in an amount not to exceed $149,360;

    26. J&T Sportfishing for the repower of 1 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $146,160;

    27. Options Sportfishing for the repower of 2 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $179,110;

    28. Sea Horse Sportfishing for the repower of 2 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $221,860;

    29. Terry Herzik for the repower of 2 main engines of a marine vessel in an amount not to exceed $142,160;

    30. Chubasco Sportfishing for the repower of 1 main engine of a marine vessel in an amount not to exceed $69,252;

    31. Redondo Special Sportfishing for the repower of 1 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $109,360;

    32. Dana Wharf Sportfishing for the repower of 4 main and 1 auxiliary engines of two marine vessels in an amount not to exceed $312,096;

    33. Dolphin Safari for the repower of 2 main engines of a marine vessel in an amount not to exceed $51,228;

    34. Alan Smith for the repower of 2 main engines of a marine vessel in an amount not to exceed $153,185;

    35. Psalty Adventures for the repower of 2 main engines of a marine vessel in an amount not to exceed $149,360;

    36. Railtime Sportfishing for the repower of 2 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $137,082;

    37. Parker Diving Service for the repower of 4 main engines of two marine vessels in an amount not to exceed $73,774;

    38. Ocean Explorer for the repower of 2 main engines of a marine vessel in an amount not to exceed $116,972;

    39. Big Game 90 for the repower of 2 main engines of a marine vessel in an amount not to exceed $169,199; and

    40. La Verne Fire Department for the repower of 1 on-road emergency vehicle subject to case-by-case approval by CARB, in an amount not to exceed $126,899.

  1. Authorize the Chairman to execute the following Carl Moyer Program contracts with funds from the Carl Moyer Program SB 1107 Fund (32) for a total up to $3,691,489:

    1. Johnson Equipment for the repower of 3 off-road vehicles in an amount not to exceed $468,144;

    2. Chino Grading for the repower of 6 off-road vehicles in an amount not to exceed $632,889;

    3. Willard Marine for the replacement of 1 off-road vehicle in an amount not to exceed $40,565;

    4. San Pedro Bait Company for the repower of 2 main and 2 auxiliary engines of two marine vessels in an amount not to exceed $318,320;

    5. Sal Boy, Inc. for the repower of 1 main and 4 auxiliary engines of two marine vessels in an amount not to exceed $310,806;

    6. Harley Marine Services for the repower of 4 main and 2 auxiliary engines of two marine vessels in an amount not to exceed $849,191;

    7. Foss Maritime Company for the repower of 2 main engines of a marine vessel in an amount not to exceed $412,012;

    8. Heinmiller/Stameisen for the repower of 2 main and 2 auxiliary engines of a marine vessel in an amount not to exceed $67,316; and

    9. U.S. Water Taxi for the repower of 8 main engines of four marine vessels in an amount not to exceed $577,945.

  1. Authorize the Chairman to execute the following Carl Moyer Program contracts with interest from the Carl Moyer Program SB 1107 Fund for a total up to $1,663,667:

    1. Waste Management Collection and Recycling for the repower of 25 on-road vehicles subject to case by case approval by CARB, in an amount not to exceed $1,199,897;

    2. Island Enterprises for the repower of 1 main and 2 auxiliary engines of two marine vessels in an amount not to exceed $70,955;

    3. CAT Dive Charters for the repower of 1 main engine of a marine vessel in an amount not to exceed $83,462; and

    4. New Freedom Sportfishing for the repower of 2 main and 2 auxiliary engines of a marine vessel in an amount not to exceed $277,360.

  1. Authorize the Chairman to execute the following Carl Moyer Program contracts with interest from the Carl Moyer Program SB 1107 Multidistrict Fund for a total of up to $527,880:

    1. Pursuit, LLC for the repower of 1 auxiliary engine of a marine vessel in an amount not to exceed $41,840;

    2. Limitless Sportfishing Charters for the repower of 2 main engines of a marine vessel in an amount not to exceed $121,360;

    3. Liquid Coast Highway for the repower of 1 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $132,448; and

    4. American Marine Corporation for the repower of 3 main and 1 auxiliary engines of two marine vessels in an amount not to exceed $227,405.

  1. Authorize the Chairman to execute a contract with Rocky Point Sport Fishing for the repower of 2 main and 1 auxiliary engines of a marine vessel in an amount not to exceed $146,160 from the Carl Moyer Program Fund, comprised of $31,993 in SB 1107 interest, $4,827 in SB 1107 Multidistrict interest, $102,599 in Carl Moyer interest, and $6,741 in Proposition 40 interest funds.

  1. Authorize the Chairman to execute the following contracts under the SOON Provision of the state in-use off-road vehicle regulation from the Carl Moyer Program SB 1107 Fund (32) for a total up to $13,907,929:

    1. Orange County Waste and Recycling for the repower of 1 off-road vehicle in an amount not to exceed $78,941;

    2. Sukut Equipment for the repower of 6 off-road vehicles in an amount not to exceed $1,195,700;

    3. Burrtec Waste Industries for the repower of 6 off-road vehicles in an amount not to exceed $228,519;

    4. Lee & Stires for the repower of 8 off-road vehicles in an amount not to exceed $823,771;

    5. Larry Jacinto Construction for the replacement of 13 off-road vehicles in an amount not to exceed $3,376,111;

    6. Coburn Equipment Rental for the repower of 5 off-road vehicles in an amount not to exceed $1,307,424;

    7. REC Equipment for the repower of 1 off-road vehicle in an amount not to exceed $79,525;

    8. Rentrac for the repower of 27 and the replacement of 2 off-road vehicles in an amount not to exceed $4,316,042;

    9. Earl Higgins for the repower of 2 off-road vehicles in an amount not to exceed $129,461;

    10. Beven-Herron for the repower of 4 off-road vehicles in an amount not to exceed $68,096;

    11. SA Recycling for the repower of 12 off-road vehicles in an amount not to exceed $1,062,615;

    1. Vulcan Materials for the repower of 1 off-road vehicle in an amount not to exceed $401,483;

    2. Mattivi Brothers Leasing for the repower of 1 off-road vehicle in an amount not to exceed $80,926; and

    3. Mesa Contracting for the repower of 6 off-road vehicles in an amount not to exceed $759,315.

  1. Authorize the Chairman to execute the following contracts under the SOON Provision of the state in-use off-road vehicle regulation from the Carl Moyer Program AB 923 Fund (80) for a total up to $584,979:

    1. Bill Higgins for the repower of 4 off-road vehicles in an amount not to exceed $269,571;

    2. R.D. Matthews for the repower of 3 off-road vehicles in an amount not to exceed $315,408.

  1. Amend an award to Pacific Harbor Line approved on July 9, 2010, to increase the funding amount by $14,301, to the new total amount of $10,546,336, from the Carl Moyer Program SB 1107 Fund (32).

  1. Amend an award to Carnival Cruise lines from a shore power project for two marine vessels approved on September 11, 2009, to a shore power project for at least one marine vessel.

  1. Authorize to switch project funds from the Carl Moyer Program AB 923 Fund to the Carl Moyer Program SB 1107 Fund for projects listed in Tables 2 and 3, to enable meeting the program expenditure targets expeditiously in case of returned funds.

  1. Issue Program Announcement #2011-01 to solicit projects for off-road vehicles and equipment subject to Rule 2449 – SOON Provision.


Barry R. Wallerstein, D.Env.
Executive Officer

Background

Carl Moyer Program and SOON Provision

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. Table 1 shows a summary of available funds from the “Year 12” funds in addition to accumulated interest and returned funds.

On May 7 and June 4, 2010, proposals were received in response to the Program Announcements that were issued for the “Year 12” Carl Moyer Program and the SOON Provision, respectively. A total of 78 proposals were received under the Carl Moyer Program requesting $41.7 million in funding, and a total of 21 proposals were received under the SOON Provision requesting $26.5 million in funding. At its July 9, 2010 meeting, the Board already approved $10,532,035 million for locomotive projects as part of the “Year 12” Carl Moyer Program funds.

SOON Program Announcement

On November 2, 2007, the AQMD issued the first Program Announcement PA #2008-01 for $30 million under the SOON Provision and opted into this provision of the state regulation at its May 2, 2008 Board meeting. The most recent Program Announcement was issued on December 4, 2009 and closed on June 4, 2010. To provide continued access to the SOON funding and allow affected fleets sufficient time to apply, staff is recommending that a new Program Announcement be issued. 

Proposal

Carl Moyer Program and SOON Provision

This action is to approve the recommended new projects and one amended project as outlined in Table 2 under the Carl Moyer Program in an amount not to exceed $12,954,900 from the Carl Moyer Program Fund, comprised of $6,962,524 in AB 923 funds (Fund 80), $3,691,489 in SB 1107 funds (Fund 32), and $2,300,887 in accumulated Carl Moyer interest funds. All the marine vessel projects will be equipped with GPS units at a cost of $2,160 per vessel, for which funding has been set aside under a separate contract. Total NOx and PM reductions from the recommended projects are approximately 198.2 tons/year and 7.4 tons/year, respectively. This action is also to approve the recommended off-road projects, as outlined in Table 3, under the SOON provision in an amount not to exceed $14,492,908, from the Carl Moyer Program Fund, comprised of $13,907,929 in SB 1107 funds (Fund 32), and $584,979 in AB 923 funds (Fund 80). Total NOx reductions from the recommended projects are approximately 162.7 tons/year.

The applications have been evaluated according to CARB’s Carl Moyer Program guidelines released on April 22, 2008, and the subsequent amendments adopted on

March 25, 2010. A total of $7,547,503 is being funded with AB 923 funds, of which $2,107,534 will be used towards the required match as shown in Table 1, and the remaining $5,439,969 will be used either as backup to substitute any returned funds from Carl Moyer projects or as match projects towards next year’s requirement. Hence, this action is to allow switching project funds from the Carl Moyer Program AB 923 Fund to the Carl Moyer Program SB 1107 Fund for projects listed in Tables 2 and 3 to enable meeting the program expenditure targets expeditiously in case of returned funds. 

Table 4 summarizes staff’s recommendation for the Carl Moyer Program and the SOON Provision awards in disproportionately impacted areas under the requirements of AB 1390. The total amount of projects funded in disproportionately impacted areas is $14,708,183, while the total amount of projects funded solely based on cost-effectiveness is $12,739,625. In summary, 54% of the projects are in disproportionately impacted areas.

The final action is to amend an award to Carnival Cruise lines from a shore power project for two marine vessels approved on September 11, 2009, to a shore power project for at least one marine vessel. The original project award was evaluated only for the shore power side of the project, which will be able to accommodate more than one marine vessel. However, in the beginning one vessel will be retrofitted for the operation with other possible vessels to follow. This amendment corrects the award language approved on September 11, 2009.

SOON Program Announcement

This action is to approve the release of the attached Program Announcement PA#2011-01 to provide funding assistance for off-road diesel vehicle projects to achieve additional NOx emission reductions under the SOON Provision. As part of the Board’s approval to release the Program Announcement, funding would be set aside from the Carl Moyer Program AB 932 and SB 1107 Funds and will be subject to the Carl Moyer Program guidelines. The Program Announcement is provided in the attachment to this letter.  

Funding Distribution

Funding for projects has been 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 Board’s allocation of funds for the Fleet Modernization Program and the implementation of the Proposition 1B Goods Movement Program by far exceeds the goods movement objective. Approximately 54% of the award dollars are recommended for projects under the Environmental Justice category in disproportionately impacted (DI) areas. Furthermore, the entire award amount of $10.5 million for locomotive projects approved on July 9, 2010, under the “Year 12” Carl Moyer Program met 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.

  1. All projects must qualify for the Carl Moyer program by meeting the cost effectiveness limits established in the Program Announcement.

  2. All projects will be evaluated according to the following criteria to qualify for funding as a disproportionately impacted area:

  1. 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

  2. PM2.5 Exposure: All projects in areas with the highest 15 percent of PM2.5 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

  3. 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 website (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 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 Carl Moyer Program and the SOON Provision shall not exceed $27,447,808 from the Carl Moyer Program, comprised of the following:

$7,547,503 AB 923
$17,599,418 SB 1107
$1,663,667 SB 1107 interest
$527,880 SB 1107 Multidistrict interest
$102,599 Carl Moyer Program interest
$6,741 Proposition 40 interest

Attachments (EXE, 512k)

  1. Table 1 – Carl Moyer Program Available Funds
    Table 2 – Recommended Carl Moyer Program Awards
    Table 3 – Recommended SOON Provision Awards
    Table 4 – Funding Distribution of Recommended Carl Moyer Program and SOON Provision Awards

  1. Surplus Off-Road Opt-In for NOx (SOON) Program Announcement PA#2011-01


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