PROPOSAL:
Modify Contracts Executed Under FY 1999-00 Carl Moyer Program
SYNOPSIS:
Under the CARB’s FY 1999-00 Carl Moyer Program, ENRG (formerly Pickens
Fuel Corporation) was awarded infrastructure development funding for five
stations. Negotiations with two of those stations have been terminated.
ENRG is requesting that the funding awarded for these two sites be
transferred to two new sites for which contracts are being negotiated. The
new sites meet or exceed the cost effectiveness and fuel throughput
requirements set forth under the Carl Moyer Program. Staff recommends
approval of a no-cost contract amendment allowing the Carl Moyer Funds to
be used for these two new stations.
COMMITTEE:
Technology, February 22, 2002, Recommended for Approval
RECOMMENDED ACTION:
Authorize the Chairman to execute a no-cost contract amendment with
ENRG (formerlyPickens Fuel Corporation) allowing Carl Moyer Funds to be
used at CR&R and Rainbow Disposal.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Alternative fuel vehicles, such as natural gas vehicles have demonstrated
significantly lower NOx emissions than diesel fueled vehicles. Recent Board
actions to provide funding assistance for the expansion of the natural gas
fueling infrastructure will lead to further commercialization of natural gas
vehicles. At its August 18, 2000 meeting, the Governing Board approved the
execution of contracts under the CARB’s FY 1999-2000 Carl Moyer Program for
developing a fueling infrastructure. Those projects will help establish a
basin-wide natural gas fueling infrastructure for both compressed natural
gas (CNG) and liquefied natural gas (LNG).
Proposal
ENRG (formerly Pickens Fuel Corporation) was awarded infrastructure
development funding for five stations. ENRG has stated that contract
negotiations with two of those stations - CalMet and Waste Management – San
Gabriel have been terminated. ENRG is requesting that the funding originally
awarded to them for these two sites be transferred to two other sites they
are negotiating contracts with. The two other disposal companies - CR&R (in
San Juan Capistrano) and Rainbow Disposal (in Huntington Beach) each meet or
exceed the cost effectiveness and fuel throughput requirements set forth
under the Moyer Program. In addition, both of these companies have been
seeking additional funding in order to make their projects viable. The
proposed transfer of the original Carl Moyer awards of $400,000 would
provide sufficient funds to complete the two projects.
Benefits to AQMD
The AQMP relies on the expedited implementation of advanced technologies
and clean–burning fuels in Southern California to achieve air quality
standards. By constructing more natural gas fueling facilities, benefits
from this project will accrue to all cities and area residents. Such new
construction will provide a coordinated effort, plan for growth of the
overall infrastructure, and help reduce costs associated with duplication of
effort. While having no direct impact on air emission reductions, new
CNG-LCNG stations will help facilitate the introduction of low emission,
natural gas fueled refuse trucks in private and public fleets in the area.
Such increased penetration of natural gas fueled refuse trucks will provide
direct emissions reductions of NOx, PM, and toxic compounds throughout the
Basin.
Resource Impacts
Total cost for the two new projects is $400,000, however no new or
additional costs are being incurred. All funding for these projects is from
the Carl Moyer Program Fund, established as a special revenue fund resulting
from the statewide Carl Moyer Memorial Air Quality Standards Attainment
Program, administered by CARB. The objective of the Carl Moyer Program is to
accelerate the introduction of low-emission heavy-duty engines. Funds are
distributed by the CARB through local air districts. Funds from this program
are restricted to be used as incentives to private companies or public
agencies operating heavy-duty engines in California to cover an incremental
portion of the cost of cleaner on-road, off-road engines.
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