BOARD MEETING DATE: October 1, 2010
AGENDA NO. 7
PROPOSAL:
Execute Contracts and Transfer Funds for Voucher Incentive Program
SYNOPSIS:
In July 2010, the Board recognized $1,471,433 from CARB to continue implementation of the Carl Moyer On-Road Heavy-Duty Vehicle Voucher Incentive Program. As required, the AQMD identified an equal amount of local match comprised of $690,895 from SB 1107 Multidistrict returned funds and up to $780,538 from the AB 923, Carl Moyer Program Fund. This action is to execute eight new contracts consisting of three new dealerships and five new retrofit installers. The final action is to grant the Executive Officer authority to redistribute the funds among the dealerships and retrofit installers based on demand.
COMMITTEE:
Technology, September 24, 2010, Recommended for Approval
RECOMMENDED ACTIONS:
Authorize the Chairman to:
Execute contracts with the following dealerships in equal amounts of $720,766 per dealership for a total amount of $2,162,328, from the Carl Moyer Program SB 1107 Multidistrict Fund (32):
Enterprise Motors, Inc;
Tom’s Truck Center, Inc; and
United Auto & Truck, Inc.
- Execute contracts with the following retrofit installers in equal amounts of $156,107 per retrofit installer for a total amount of $780,535 from the Carl Moyer Program AB 923 Fund (80):
Cummins Cal Pacific, LLC;
Boshart Engineering, Inc;
Ironman Parts & Services;
Quinn Power Systems; and
Valley Power Systems, Inc.
Authorize the Executive Officer to redistribute (add or reduce) funding amongst all Voucher Incentive Program (VIP) dealerships and/or retrofit installers to address demand.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
The Carl Moyer On-Road Heavy-Duty Vehicle VIP was initially developed by CARB in March 2009 to reduce the purchase cost to applicants replacing an old heavy-duty diesel vehicle with a newer, lower-emission vehicle. It is a truck replacement program designed to help streamline the application process for incentive funding and accelerate the turnover of older, high polluting trucks. Since its implementation date, the program participation in the VIP has been considerably lower statewide than anticipated by CARB.
In March 2010, in an effort to help increase program participation, CARB adopted several program modifications which were anticipated to greatly expand the pool of eligible applicants. These program modifications include reducing the minimum gross vehicle weight rating to 19,501 lbs, increasing the eligible engine model years for the old engine to 2002 and older, increasing the maximum eligible funding amount to $45,000 per vehicle, and adding a retrofit funding section for truck owners with Engine model years 2004 to 2006 for a maximum funding of up to $5,000 per retrofit device.
On July 9, 2010, the Board recognized $1,471,433 in “Year 12” SB 1107 Multidistrict funds from CARB to continue implementation of the VIP. As required, the AQMD identified an equal amount of local match comprised of $690,895 from SB 1107 Multidistrict returned funds and up to $780,538 from the AB 923, Carl Moyer Program Fund. Subsequently, on July 15, 2010, AQMD hosted an informational training workshop, as prescribed by the VIP Guidelines, to solicit program participation from interested dealerships, dismantlers, and retrofit installers. The workshop was well attended with a total of 49 attendees consisting of 28 dealers, 10 dismantlers, and 11 retrofit installers.
Proposal
Since the program implementation date, AQMD has executed contracts with nine VIP Dealerships and six VIP Dismantlers. As a result of the new changes to the program by CARB, AQMD will be required to contract with retrofit installers that meet the eligibility criteria outlined in the VIP Guidelines. This will be in addition to the existing requirement to execute contracts with VIP-trained Dealerships and Dismantlers.
AQMD must review and approve applications on a first-come first-served basis. Additional requirements specified by CARB for AQMD include: 1) providing all program participants (applicants, dealerships, dismantlers and retrofit installers) with the required VIP forms and documents, 2) approve/reject applications within 5 business days of receipt, 3) conduct salvage inspections (only for replacement projects) within 60 days of delivery to dismantler, 4) mail out annual usage surveys to voucher recipients for 3 years, and 5) retain records for a minimum of 5 years.
Staff recommends the Board authorize the Chairman to execute contracts with the following eight entities that have opted to participate in the VIP, consisting of three new VIP Dealerships and five new VIP Retrofit Installers, respectively:
Dealerships
Enterprise Motors, Inc;
Tom’s Truck Center, Inc; and
United Auto & Truck, Inc.
Retrofit Installers
Cummins Cal Pacific, LLC;
Boshart Engineering, Inc;
Ironman Parts & Services;
Quinn Power Systems; and
Valley Power Systems, Inc.
Since the demand at each dealership and/or retrofit installer is unknown, staff recommends allocating $720,776 (SB 1107 Multidistrict Fund) to each dealership and $156,107 (AB 923 Fund) to each retrofit installer initially. Total funding for these contracts totals $2,942,863, comprised of $2,162,328 from the Carl Moyer Program SB 1107 Multidistrict Fund, and $780,535 from the Carl Moyer Program AB923 Fund.
In order to meet the expedited process of the VIP and to efficiently meet demand, staff further recommends the Board authorize the Executive Officer to redistribute (add or reduce) all VIP funds amongst any VIP participant based on voucher activity.
Benefits to AQMD
The successful implementation of the Carl Moyer On-Road Heavy-Duty VIP will provide emission reductions of both NOx and PM as required by the program. Since the vehicles to be funded under this program will operate for many years, the emission reductions will provide long-term benefits.
Resource Impacts
Total funding for these contracts totals $2,942,863, comprised of $2,162,328 from the Carl Moyer Program SB 1107 Multidistrict Fund, and $780,535 from the Carl Moyer Program AB 923 Fund. This funding shall be added to the existing budget for implementation of the VIP.