BOARD MEETING DATE: July 7, 2006
AGENDA NO. 8

Issue Program Announcement for Carl Moyer Fleet Modernization Program and Execute Contract to Conduct In-Use Emissions
Testing

SYNOPSIS:

Pre-1990 heavy-duty diesel trucks are high-polluting and contribute significantly to the South Coast Air Basin’s NOx, PM10, and VOC emissions. Pre-1990 trucks can emit two and a half times as much NOx and five times as much particulates as trucks meeting the current on-road heavy-duty engine exhaust emissions standards.  The Carl Moyer program includes a heavy-duty on-road truck fleet modernization element under which incentive funds are provided to truck operators to replace pre-1990 vehicles with newer vehicles. This action is to release a Program Announcement to solicit projects to replace pre-1990 diesel trucks with Model Year 2006 diesel or natural gas trucks at a cost not to exceed $6 million contingent upon CARB approval of AQMD’s Fleet Modernization Plan, and to execute a contract with West Virginia University for $240,000 to conduct in-use emissions testing on heavy-duty trucks.  The Board set-aside $6 million from the Carl Moyer Program for Fleet Modernization.  Sufficient funds are available from the Clean Fuels Fund to conduct the in-use emission testing.

COMMITTEE:

Technology, June 23, 2006, Recommended for Approval

RECOMMENDED ACTIONS:

1. Approve the release of the attached Program Announcement #PA2007-01 to solicit projects under the Carl Moyer Fleet Modernization program to replace pre-1990 heavy-duty diesel-fueled trucks with Model Year 2006 diesel or natural gas trucks in an amount not to exceed $6 million from the FY 2005-06 Carl Moyer Fund contingent upon CARB approval of AQMD’s Fleet Modernization Plan. 
2. Authorize the Chairman to execute a sole-source contract with West Virginia University to conduct in-use emissions testing of Model Years 2004 and 2005 Class 7 and 8 heavy-duty diesel and natural gas fueled trucks in an amount not to exceed $240,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 2005, a heavy-duty on-road fleet modernization program category was added to the Carl Moyer Program.  The Fleet Modernization Program provides financial incentives to replace older high-polluting diesel trucks with newer lower emissions diesel and natural gas trucks.  At its February 2006 meeting, the Board set aside $6 million for the Fleet Modernization Program.

From 1990 through 2000, the on-road heavy-duty engine exhaust certification standards for NOx decreased by approximately 20%.  However, recent studies conducted by West Virginia University showed that from 1990 through 2000 in most cases the in-use NOx emissions remained at similar levels, and during the later part of the 1990’s when the NOx emissions standard was tightened, the in-use emissions were higher compared to the NOx emissions of heavy-duty vehicles from the early 1990’s.  The results of the recent studies have implications in the development of the on-road mobile source NOx emissions inventory development for the 2007 AQMP Revision.  CARB has already revised its emissions factor model (EMFAC) to reflect the results of the studies.  However, the implications of the studies on the Fleet Modernization Program have not been fully evaluated at this time relative to the efficacy of replacing older diesel trucks with post-2003 heavy-duty diesel trucks.

Proposal

This action is to release the attached Program Announcement #PA2007-01 to solicit projects under the Carl Moyer Fleet Modernization program to replace pre-1990 heavy-duty diesel-fueled trucks with Model Year 2006 diesel or natural gas trucks in an amount not to exceed $6 million contingent upon CARB approval of AQMD’s Fleet Modernization Plan.  A maximum of five trucks per company will be funded under this Program Announcement and per CARB cost-effectiveness will be based on 3 years.

Staff believes that until further in-use emissions testing of post-2003 heavy-duty diesel trucks are conducted, the replacement of older diesel trucks with Model Year 2006 trucks will provide the greatest assurance that emission reduction benefits will be realized in a cost-effective and timely manner.  To further understand the in-use emissions levels of post-2003 heavy-duty trucks, staff proposes that the Board execute a sole-source contract with West Virginia University to conduct in-use emissions testing on 15 Model Years 2004 and 2005 Class 7 and 8 heavy-duty diesel trucks in an amount not to exceed $240,000 from the Clean Fuels Fund.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the Program Announcement and inviting bids will be 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 be notified utilizing AQMD’s own electronic listing of certified minority vendors.  Notice of the Program Announcement will be 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 Web site (http://www.aqmd.gov/ where it can be viewed by making menu selections “Inside AQMD”/“Employment and Business Opportunities”/“Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html).  Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Sole Source Justification

Section VIII.B.2. of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified.  The request to conduct Class 7 and 8 heavy-duty diesel-fueled truck emissions testing and analysis is made under provision B.2.d.(8): Research and development efforts with educational institutions, or nonprofit organizations.

There are two organizations located in the South Coast Air Basin that have the capability of conducting chassis dynamometer emissions testing: the Los Angeles County Metropolitan Transportation Authority (MTA) facility operated by CARB, and the West Virginia University mobile facility located in Riverside.  Other facilities outside of the South Coast Air Basin capable of conducting such testing are located in northern California and various locations nationally.  However, there will be additional costs associated with having vehicles transported to facilities outside of the Basin.  Staff proposes to utilize West Virginia University to conduct the emissions tests because of their location in Riverside, CA.  In addition, based on discussions with CARB regarding the availability of the MTA facility, staff believes that CARB will not be able to provide the time and resources required to conduct these tests.  In addition, West Virginia University conducted the Coordinating Research Council (CRC) E55/59 in-use emissions tests reports on heavy-duty diesel-fueled vehicles that led to this proposed project.  The recommended award to West Virginia University would provide additional data that would be directly comparable with  the CRC study.

Benefits to AQMD

The successful completion of the fleet modernization project will significantly reduce NOx and PM10 emissions in a cost effective and expeditious manner.  The West Virginia University emissions testing project will provide a better understanding and estimation of NOx and PM emissions from newer heavy-duty trucks for purposes of the AQMD’s AQMP and the Fleet Modernization Program.

Resource Impacts

The total project cost of $6 million for the fleet modernization program will be provided from the FY 2005-06 Carl Moyer Fund.

The project cost of $240,000 for emissions testing will be provided from the Clean Fuels Fund.  Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program.  The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies.  Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

Attachment (EXE 638 KB)
Program Announcement #PA2007-01 - Carl Moyer Fleet Modernization Program

ERRATA SHEET FOR THE
GOVERNING BOARD AGENDA
July 14, 2006

Agenda Item No. 8:  Issue Program Announcement for Carl Moyer Fleet Modernization Program and Execute Contract to Conduct In-Use Emissions Testing

Since the Board meeting date for the approval of this item was moved from July 7, 2006 to July 14, 2006, the release as indicated in the RFP will change as follows:

I.B.      PROGRAM SCHEDULE

The implementation schedule is shown below.  Qualifying projects will be funded on a first-come-first-served basis until all allocated funds are expended. 

Carl Moyer Fleet Modernization Program

July 714, 2006                         Issue the Program Announcement & Application

                                                PA 2007-01

July 1118, 2006                       Start receiving applications

June 30, 2008                          All trucks must be in operation