South Coast Air Quality Management District

Execute Contracts with Ski Resorts to Replace Existing Snow Making Equipment and with School Districts to Install PM Traps on Backup Generators; and Approve Issuance of Program Announcement for Lower-Emission School Bus Replacement and Retrofit Program Funding

SYNOPSIS:

The AQMD expects to receive $5 million from EPA for school bus replacement and retrofit programs, and to receive an additional $1.5 million from CARB for school bus retrofit programs. Staff proposes to provide $10,898,853 for school bus replacement and retrofit programs comprised of $4,398,853 from State Backup Generator Program, $1.5 million from State Lower-Emissions School Bus Program, and $5 million from EPA. The proposed program announcement and application for school bus programs will provide funding to replace older school buses with alternatively fueled buses and retrofit school buses with particulate traps. Staff also proposes to fund ski resort equipment and PM traps for an amount not to exceed $1 million and PM traps for diesel backup generators at school districts for an amount not to exceed $250,000.

COMMITTEE:

Technology, June 28, 2002, Recommended for Approval

RECOMMENDED ACTION:

1. Establish the State BUG Program Fund and recognize $5,648,853 from CARB's Diesel-Fueled Electrical Backup Generator Emissions Mitigation Program to this Fund; transfer $4,398,853 to the Lower-Emission School Bus Program Fund.
   
   
2. Recognize $5,000,000 from U.S. EPA to the Lower-Emission School Bus Program Fund.
   
   
3. Authorize the Chairman to execute a contract with Snow Summit Ski Corporation to replace existing ski resort snow making equipment with new low-emission equipment and install PM traps on diesel-fueled generators in an amount not to exceed $500,000 from the State BUG Program Fund.
   
   
4. Authorize the Chairman to execute a contract with Bear Mountain Ski Resort to replace existing ski resort snow making equipment with new low-emission equipment and install PM traps on diesel-fueled generators in an amount not to exceed $500,000 from the State BUG Program Fund.
   
   
5. Approve issuance of Program Announcement & Application #PA 2003-05 to replace and retrofit school buses in an amount not to exceed $10,898,853 from the Lower-Emission School Bus Program Fund, and to install PM traps on school diesel backup generators in an amount not to exceed $250,000 from the State BUG Program Fund, as part of an ongoing effort to expeditiously reduce public exposure to air toxics and other pollutants.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

There are approximately 17,200 backup generators in California, and 46% of them are in the South Coast Air Basin. Of the approximately 7,880 backup generators in the Basin, 85% of them are diesel-fueled. These generators can generate up to 26 tons/hour of NOx emissions if all generators are used simultaneously. Diesel exhaust emissions also contain oxides of sulfur (SO_x), particulate matter, hydrocarbons, toxic air contaminants, and green house gas emissions.

As designed by the California Legislature, the primary focus of the Diesel-Fueled Electrical Backup Generator Emissions Mitigation Program is to mitigate emissions from backup diesel generators or other sources with the same or similar emissions. AQMD is required to distribute one-half of the total funding of $5,648,853 in compliance with Health and Safety Code 43023.5 (AB1390, Firebaugh), to directly benefit low-income communities and communities of color that are disproportionately impacted by air pollution. Projects should be designed to ensure that the emission reductions expected through the deployment of low-emission engines or retrofit technologies under this program are real, surplus, and quantifiable.

Exhaust emissions from high emitting diesel-fueled school buses are harmful to children and are a source of public exposure to toxic diesel particulate matter and smog forming pollutants. There are thousands of older school buses on the road that have remained in service simply because school districts lack funds to replace them. To reduce emissions from these vehicles, to date the AQMD has awarded 141 compressed natural gas (CNG), and 87 lower-emitting diesel school buses to public school districts in the Basin to replace older high-polluting school buses, as part of the State’s Lower-Emission School Bus Program in FY 2000-01 and FY 2001-02.

The ski resort equipment that is being proposed for funding is more energy efficient than the existing equipment. This will reduce energy consumption both from the grid and backup generators thereby reducing emissions significantly. In addition, the backup generators will be equipped with PM traps to further reduce PM emissions.

Proposal

The AQMD has received grants of $5,648,853 under the Diesel-Fueled Electrical Backup Generator Emissions Mitigation Program and an additional $1.5 million under the State Lower-Emission School Bus Program. The AQMD is also expected to receive $5 million from EPA for school bus replacement and retrofit. The staff proposes the following relative to these funding.

1. Award contracts of $500,000 each to Snow Summit and Bear Mountain to replace existing ski resort snow making equipment with new low-emission equipment and install PM traps on diesel-fueled generators from the State BUG Program Fund.
   
   
2. Award contracts to school districts to install PM traps on diesel backup generators in an amount not to exceed $250,000 from the State BUG Program Fund.
   
   
3. Award contracts in an amount not to exceed $7,898,853 under the Lower-Emission School Bus Replacement Program in the South Coast Air Basin. This program will replace existing diesel-fueled buses with buses powered by alternative fuels. $4,398,853 will be provided from the State BUG Program Fund and an additional $3.5 million will be provided from the expected $5 million fund from EPA. The new buses will meet CARB optional NOx and PM engine certification standards of 2.5 g/bhp-hr and 0.03 g/bhp-hr, respectively.
   
   
4. Staff also proposes to award contracts in an amount not to exceed $3 million under the Lower-Emission School Bus Retrofit Program in the South Coast Air Basin. $1.5 million will be provided from funds to be received from CARB under the State Lower Emissions School Bus Program, and $1.5 million will be provided from the expected $5 million fund from EPA.

All the funds will be expended in compliance with AB1390, Firebaugh, to directly benefit low-income communities and communities of color that are disproportionately impacted by air pollution. Further details about the implementation methodology of AB1390 are outlined under the "Disproportionate Impact Funding" paragraph. Funding will also be distributed in accordance with the following factors:

• Funds for the school bus replacement program will be distributed proportionate to each county’s general population in the Basin.
  
  
• Los Angeles Unified School District’s funding eligibility will be limited to a maximum of fifty percent of the total funds to be allocated for Los Angeles County.
  
  
• Because of the special funding for school bus replacement under the AES Settlement Fund, Jurupa Unified School District will not be eligible for this specific solicitation.

Based on the above criteria, the approximate number of alternatively fueled buses to be distributed to the public school districts of each county will be as listed in Table 1.

Table 1: Proposed Distribution of Replacement School Buses in the Basin
 

*   The population number is for year 2000, obtained from the California Statistical Abstract,
     published by the Department of Finance.
** The number of buses allocated to each county are approximate due to price differences
     for CNG buses and amount of funding requested for infrastructure.

Disproportionate Impact Funding

As required under the State BUG Program, and the School Bus Programs, no less than one-half of the total funding of $10,898,853 will be expended in compliance with AB1390, Firebaugh, to directly benefit low-income communities and communities of color that are disproportionately impacted by air pollution. CARB has issued goals and left the details of how to implement this requirement to each air agency. Staff recommends the following methodology to meet the new requirements:

All applications will be evaluated for poverty level, PM exposure, and toxic exposure according to the following criteria:
 

A)	Poverty Level: All school districts in areas where at least 10% of the population falls below the Federal poverty level based on the Year 2000 census data, will be eligible to be ranked in this category.
B)	PM Exposure: All school districts in areas with the highest 15% of PM concentration will be eligible to be ranked in this category. The highest 15% of PM concentration is 46 micrograms per cubic meter and above based on an annual average.
C)	Toxic Exposure: All projects in areas with the highest 15% of toxic exposure (based on MATES II estimates), will be eligible to be ranked in this category. The highest 15% represents a cancer risk of 1,139 in a million and above (Mates II study).

Any applicant qualifying based on both the poverty level and either PM exposure or toxic exposure categories will qualify for disproportionate impact funding. If available funds are not exhausted with the outlined methodology, then the AQMD will reevaluate the criteria and report back to the Board for possible changes. If on the other hand, funding requests exceed available funding for the replacement component of the program, then all qualified applicants will be ranked according to a point ranking system specified in Attachment 1.

All other applicants not awarded under the disproportionate impact funding will then be ranked according to the point ranking system in Attachment 1, and awards will be granted from the top ranked applicant in descending order until all funds are exhausted.

Staff proposes to issue the attached Program Announcement & Application, for the implementation of the Lower-Emission School Bus Replacement Program in the South Coast Air Basin for FY 2002-03.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the Program Announcement & Application and inviting applications will be published in the following publications:
 

1.	Angeles Mesa Wave, The	11.	Inland Valley Daily Bulletin	21.	Palm Springs Desert Sun
2.	Antelope Valley Press	12.	Korea Central Daily	22.	Philippine News
3.	Black Voice News	13.	La Opinion	23.	Precinct Reporter
4.	Central News Wave	14	La Prensa	24.	Rafu Shimpo
5.	Chinese Daily News	15.	La Voz	25.	Press Enterprise
6.	Eastern Group Publications	16.	Los Angeles Daily News	26.	San Bernardino Sun
7.	El Chicano	17.	Los Angeles Sentinel	27.	Santa Clarita Signal
8	El Informador	18.	Los Angeles Times	28.	The Wave
9.	Excelsior, The	19.	M/W/DVBE Source	29.	State of California Contracts
10.	Inland Empire Hispanic News	20.	Orange County Register		Register

Additionally, potential applicants will be notified utilizing the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Notice of the Program Announcement & Application 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, "Business and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Benefits to AQMD

Replacement of existing ski resort snow making equipment with new low-emission equipment and installation of PM traps on diesel-fueled generators is a cost effective way of achieving significant reductions of NOx, SOx, PM, toxics, hydrocarbon, and green house gas emissions. The installation of PM traps on diesel-fueled backup generators at schools will also achieve similar goals of reducing emissions.

The successful implementation of the Lower-Emission School Bus Replacement and Retrofit programs will provide less polluting and safer school transportation for school children, and will reduce public exposure to toxic diesel particulate matter emissions.

The selection methodology for the school bus replacement awards will maximize the potential emission benefits in low income, high diesel and high PM10 exposure areas, and will enhance the objectives of the Environmental Justice, and Children’s Health initiatives adopted by the Governing Board.

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. This request for a sole source award is made under provision B.2.d.: Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interest of the AQMD. Specifically, these circumstances are B.2.d.(1): Projects involving cost sharing by multiple sponsors.

Bear Mountain and Snow Summit are the major ski resorts in the South Coast Basin. Their location in the Inland Empire has high levels of criteria pollutants. There is a very limited supply of electricity, natural gas or propane as a replacement for diesel fuel use in these operations. These projects will reduce their dependency on diesel-fueled backup generators. This will reduce NOx, PM, toxics, hydrocarbon, and greenhouse gas emissions significantly and benefit the local residents. Both projects will be cost shared by the project proposers so that AQMD’s funding is leveraged effectively.

Resource Impacts

The AQMD has been awarded $5,648,853 under the Diesel-Fueled Electrical Backup Generator Emissions Mitigation Program and an additional $1.5 million under the State Lower Emissions School Bus Program. The AQMD is also expected to receive $5 million from EPA for school bus replacement and retrofit programs.

$5,648, 853 will be recognized from CARB under the Diesel-Fueled Electrical Backup Generator Emissions Mitigation Program to the State BUG Program Fund with $4,398,853 to be transferred to the Lower-Emission School Bus Program Fund.

Attachments

ATTACHMENT 1

RANKING CRITERIA FOR CNG SCHOOL BUS FUNDING
 

*   Under the exposure category, a maximum of 20 points will be given to schools exposed to
     the highest ambient air PM10 concentration, and cancer risk from diesel at their garage
     locations.
** Under the income category, a maximum of 30 points will be given to schools with the
     highest percentage of students on free meal program (data provided by California
     Department of Education).

/ / /