HomeMy WebLinkAboutItem 8.1 Solid Waste Vehicles
CITY CLERK
File # D(!51~[Q]-w[Q]
X &00 - 50
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: December 6,2004
SUBJECT:
Authorization of Submittal of Funding Application for Natural Gas
Solid Waste Collcction Vehicles
Report Prepared By: Jason Behrmann, Sr. Administrative Analyst
ATTACHMENTS:
1)
2)
Resolution Authorizing Submittal of Funding Application
Guidelines for Solid Waste Collection Vehicle Inccntive
Program
RECOMMENDATION: ~ Adopt the Resolution
FINANCIAL STATEMENT: lfthe City is awarded the incentive funding to purchase natuTal gas
solid waste vehicles, the maximum grant amount would be $350,000, which would be used to reduce the
total compensation of the new Solid Waste Collection Services Agreement.
DESCRIPTION:
The B3.Y Area Air Quality Management District (Air District), in partnership with the Metropolitan
Transportation Commission (MTC), recently mlliOlUlced a new opportunity to reduce emissions from solid
waste collection vehicle (S WCV) fleets that operate within the jurisdiction of the Air District. A total of
$3.5 million in incentive funding is available, including $1.5 milJion from the Air District's
Trmlsportation Fund for Clean Air (TFCA) alld $2 million in Congestion Mitigation and Air Quality
Improvement (CMAQ) funds from MTC.
The City is eligible to apply for this funding to offset the incremental capital costs associated with natural
gas solid waste collection vehicles (compared to the cost of new diesel-powered trucks) that will bc
purchased as part of its new Solid Waste Collection Services Agreement.
A public agency may request up to a maximum of $30,000 per vehicle for a maximum total award of
$350,000 in SWCV incentives, either for SWCVs in its own fleet or for the private SWCV fleet that
serves its community.
lfthe City is awarded the incentive funding, it is anticipated that approximately 14.28% of the incentive
award wou1d he used to offset the Year I compensation of the new Solid Waste Collection Services
Agreement. 14.28% represents one year of the City's guaranteed seven-year contract with the selected
hauler. There are potentially 12 solid waste collection vehicles that would qualify, therefore, iftlle City is
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COPIES TO:
H/cc-forms/.agdastmt.doc
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ITEM NO. 8..1
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awarded the maximum amount f.ch truck, the incentive payment wouJ6 $350,000, which would
reduce the first year compensatio¡J;'y approximately $50,000. It is estimat(!!Pfhat this funding would
reduce the first year rates by slightly less thall one percent.
Applications will be accepted on a first-come, first-served basis and must be postmarked December 15,
2004 or later. The Air District anticipates allllouneingthe awards by the end of December 2004.
In order to be considered, the public agency must submit a Resolution adopted by its governing board
authorizing submittal of the application.
RECOMMENDATION
Staff recommends that the City Council adopt the Resolution Authorizing the submitta1 of an application
to the Bay Area Air Quality Mallagement District for funds to reduce emissions from solid waste
collection vehicles.
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RESOLUTION NO. - 04
A RESOLUTION OF THE CITY COUNCIL OF THE .CJTY OF DUBLIN
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AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE SAY AREA AIR
QUALITY MANAGEMENT DISTRICT FOR FUNDS TO REDUCE EMISSIONS FROM SOLID
WASTE COLLECTION VEHICLES AND AUTHORIZING THE IMPLEMENTATION OF
SAME, IF THE APPLICATION IS APPROVED BY THE BAY AREA AIR QUALITY
MANANAGEMENT DISTRICT.
WHEREAS, the California Air Resources Board has adopted a new regulation that applies to
public and private owners of solid waste collection vehicles (SWCVs) that perfonn residential and
commercial solid waste collection; and
WHEREAS, the regulation requires fleet owners to employ Best Available Control Technology
(BACT) to reduce emissions of diesel particulate matter (PM) from SWCVs; alld
WHEREAS, the regulation does not require any reduction of nitrogen oxides (NOx) emissions;
alld
WHEREAS, NOx emissions are a major component of ozone, a colorless, odorless gas that is
injurious to humall health when breathed; alld
WHEREAS, in the absence ofineemive funding, it is expected that most fleets subject to the
regulation will comply with the minimum baseline requirements to reduce PM emissions only and will not
choose to exceed the requirements for diesel PM reduction nor choose to reduce any NOx emissions; and
WHEREAS, the Bay Area Air Quality Management District ("Bay Area Air District") has
allocated funding from the Trallsportation Fund for Clean Air to assist refuse fleets in choosing rule
compliance strategies that reduce emissions heyond the requirements of the ru1e; alld
WHEREAS, local government agencies within the jurisdiction of the Bay Area Air District are
eligible to receive these funds on behalf of the SWCV fleets that they own or that they hold under contract
to perform solid waste collection; and
WHEREAS, The City of Dublin desires to participate in the SWCV incentive program; and
WHEREAS, The City of Dublin desires to encourage SWCV fleets under contract to the City to
reduce emissions beyond the requirements of the rule; and
WHEREAS, The City of Dublin desires to apply to the Bay Area Air District for funding in
response to the opportunity provided by the Bay Area Air District; and
WHEREAS, The City of Dublin desires to enter into a contract with the Bay Area Air District to
allow for expenses incurred by a contracted SWCV fleet to be reimbursed by the Bay Area Air District to
the City; alld
WHEREAS, The City of Dublin understands that it will need to enter into a contract with the
contracted SWCV fleet in order to allow for expenses incurred by the contracted SWCV fleet to be
reimbursed hy the City to the SWCV fleet; and
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ATTACHMENT 1
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WHEREAS, the governing body of the local govemment agency must adopt a Resolution to
approve the submitta1 of an application for SWCV incentive funds by that agency.
NOW THEREFORE BE IT RESOLVED that the City Manager is authorized to submit such
application on behalf ofthc City of Dublin;
BE IT FURTHER RESOLVED that the City Manager is authorized to execute a funding
agrcement with the Bay Area Air Quality Mallagelllent District for the purposes descrihed above if said
application is approved by the Bay Area Air Quality Mallagement District.
PASSED, APPROVED AND ADOPTED this 6to day of December, 2004.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
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Guidelines for Solid Waste Collection Vehicle Incentive Program
On October 20, 2004, the Bay Area Air Quality Management District (Air District) Board of
Directors approved the allocation of$I,533,216 in Transportation Fund for Cleall Air
(TFCA) Regional Funds to provide incentives to reduce emissions of nitrogen oxides (NOx)
from heavy-duty solid waste collection vehicles (SWCVs) that are subject to the California
Air Resources Board (CARB) SWCV regulation. In addition, the Metropolitan
Transportation Commission (MTC) has agreed to provide $2 million in federal Congestion
Management alld Air Quality (CMAQ) funds to the Air District for this effort. The TFCA
and CMAQ funds will be jointly administered as the SWCV Incentive Program.
The SWCV regulation, summarized below, requires SWCV fleets to reduce Clllissions of
particulate matter (PM). Incentive funds will not be provided to help SWCV fleets comply
with the baseline requirements of the SWCV regulation to reduce PM emissions. Use of the
SWCV incentive funds is subject to the TFCA policies that the Air District Board of
Directors has adopted pertaining to heavy-duty engine proj ects. Funds will be allocated on a
first-come, first-served basis as described on page 4 belQw. Applications must be
postmarked December 15,2004 or later (see page 4 for details); applications postmarked
prior to that date will not hc processed.
Summary of CARE SWCV regulation
The California Air Resources Board adopted a new regu1ation, effective July 2004, which
applies to public and private owners of solid waste collection vehicles that perform
residential and commercial solid waste col1ection. The regulation, which went into effect in
July 2004, rcquires fleet owners to employ Best Available Control Technology (BACT) to
reduce emissions of particulate matter from SWCVs. However, the regu1ation does not
require allY reduction in nitrogen oxide emissions. The compliance timetahle for the SWCV
regulation is phased. All fleets are required to bring at least 10% of their Group 1 (engine
model year 1988-2002) into compliance by December 31, 2004. Additional eompliallce
requirements apply in year 2005. For additional information on the SWCV regulation, see
http://www.arb.ea.gov/msorog/swcv/swcv.htm.
Available Funds
The available funds for SWCV incentivcs total $3.5 million. This consists of $1.5 million
in FY 2004/05 TFCA Regional Funds, plus $2 million in CMAQ funds from MTC.
Eligible Applicants
All applications for SWCV incentives must be submitted to the Air District by public
agencies located within the boundaries of the Air District. 1 The public agency must submit
] Tho jurisdiotion of tho Air District includes the entirety of AI.rneda, Contra Costa, Marin, Napa, San
Francisco, San Mateo, and Santa Clara counties; the western portion of Solano County (Benicia, Fairfield,
Suisun City, and Vallej'o); and the southern portion. of Sonoma COlUlty (the Town nfWínti ::,()T ::mrt r:nmmlmitit':~
south of it).
ATTACHMENT 2
BAAQMD Draft GuidelinesesWCV Incentives
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November 2004
a Resolution adopted by its governing board authorizing submittal of the application. The
Resolution may be submitted with the SWCV incentive application, or up to thirty (30)
calendar days after application submittal date. A sample Resolution is available on the Air
District website at www.baaomd.gov.Click on Grant & Incentives, and then click on
Refuse Truck Incentives.
Both public alld private SWCV fleets may qualify for incentive funds, as follows:
· Public SWCV fleets: Public agencies that own and operate their own SWCV fleets
may apply directly for funds.
· Private SWCV fleets: A public agency may apply for incentive funds on behalf of a
private SWCV fleet if the public agency has a franchise agreement with the
owner/operator of that SWCV fleet to provide solid waste collection within its
jurisdiction.
To apply on behalf of a private SWCV fleet, a pub1ic agency must assume the following
responsibilities:
· To serve as the formal project applicant.
· To submit a Reso1ution adopted hy its governing board (e.g., City Council).
· To enter into an incentive funding agreement with the Air District (for additional
discussion, see Incentive Funding Agreement section on page 5).
· To transmit the incentive funds to the private SWCV fleet.
· To ensure that the SWCV fleet complies with the contractual terms of the incentive
funding agreement.
· To monitor the operational status of the equipment that is purchased with Air District
incentive fimds, alld to report any ehallge in operational status (e.g., sa1e of
equipment, trallsfer of equipment to another jurisdiction) within 30 calendar days.
To qualify for incentives, all SWCVs must be operated within the boundaries of the Air
District at Jeast 90% of the miles driven and hours of operation.
If the Air District awards incentive funding to a public agency on behalf of a private SWCV
fleet, then the puhlic agency shall ensure that the incentive funding is taken into account in
evaluating any request for a rate hike to offset the cost of complying with the CARE SWCV
regulation.
Maximum Incentive Request
An eligible pubhe agency may request up to a maximum of $350,000 in SWCV incentives,
either for SWCV s in its own fleet or for the private SWCV fleet that serves its community.
If SWCV incentive funds remain available as of March 1, 2005, then agencies that already
applied for and received the maximum incentive award (i.e., $350,000) may apply for
additional incentives after this date. The Air District may specify, at that time, the
I:naximurn additional incentive alll0unt that could be requested.
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I3AAQMD Draft Guidelines .WCV Incentives
Administrative Costs
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November 2004
The Air District will reimhurse public agencies sponsors to defray the costs of administering
the SWCV incentives. The amount of funds that a public agency may request to cover grant
administTative costs is up to 5% of the allJOunt of the incentive, to a maximum of $5,000 per
agency.
Eligible Vehicles and Control Technologies
SWCV incentive funds are available for control measures to reduce NOx emissions from
solid waste collection vehicles that are subject to the CARB SWCV regulation. As of the
current date, there are two available technologies that qualify for incentive funds, as
described below.
1) Level 3 Retrofit Devices that Reduce NOx Emissions: Incentive funds are available to
install Level 3 diesel emission control retrofit devices that are certified by CARE to
reduce PM emissions by 85% alld NOx emissions by 25%. At this time, the Cleaire
Longview system is the only Level 3 retrofit device that is certified to reduce emissions
ofNQx (as well as PM). The Cleaire Longview device may be installed only on those
engines and model years cited in Attachment 1 of Executive Orders DE 03-001-03 and
DE 04-004-02, as issued by the California Air Resources Board (CARB) on July 16,
2004. For verification information, see httv://www.arb.ea.gov/diesel/verdevl1eve13.htm.
. SWCV fleets are required to use ultra-10w-sulfur diese1 (ULSD) fuel for trucks that
are equipped with retrofit devices. (SWCV incentive funds are not available to cover
the cost ofULSD fllel.)
. Passive particulate filters, such as the Cleaire Longview device, require certain
operating temperatures to perform effectively. SWCV fleets are encouraged to
conduct data-10gging prior to purchasing equipment to determine ifthe duty cycle of
their trucks is compatib1e with the temperature requirements ofthe retrofit device.
2) New Natural Gas SWCVs: Incentive funds are avaiJable to purchase new natural gas
solid waste collections vehicles that achieve CARE's optional 1.8 glbhp-hr NOx
stalldard (or lower).
Heavy-Duty Vehicle Replacement Policy: Air District p01icy requires that the SWCV
fleet must remove and scrap an o1d diesel SWCV as a condition ofreeeiving TFCA
funds for a new engine. It is expected that fleets should be ab1e to comply with this
policy based upon the actions they take to comply with the CARB SWCV regulation.
Maximum Incentive Amounts
The maximum incentive amounts are specified in the table below. The incentive amount for
the Cleaire Longview device is based upon the additional cost for a Cleaire Longview
device, compared to the cost of a basic Level 3 device that reduces PM on1y.
For new trucks equipped with natural gas engines, the Air District will provide funding to
cover the incremental cost of the natural gas truck (compared to the cost of a new diesel-
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BAAQMD Draft GuidelineseSWCV Incentives
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November 2004
powered truck), up to the maximum incentive amounts shown in the table below. The
maximum incentive amollilts are tied to the emissions standard; i.e., the maximum in.centive
amount is proportional to- the emissions that will be reduced, based upon the emission
stalldard that the engine is certified to achieve. The project sponsor will be required to
provide documentation to justify the incremental cost ofthe natural gas truck.
Control Technology
Cleaire Longview
device
New natural gas-
owered SWCV
New natural gas-
owered SWCV
New natural gas-
owered SWCV
Certification Level
Maximum Incentive
Amount
Level 3 retrofit device
$10,500
1.8 gibhp-hr (NMHC + NOx)
1.5 gibhp-hr (NMHC + NOx)
$30,000
$45,000
1.2 gfbhp-hr (NMHC + NOx)
$60,000
A list of heavy-duty engines that achieve the optional CARB low NOx stalldard is avai1able
at http://www.arb.ea.gov/msprordmover/eerteniZ.htm.
Summary of Process for Submittal of Applications and Allocation of
Funds
Applications wiIJ be accepted, alld incentive funds will be allocated by the Air District, on a
first-come, first-served basis. All applications must be submitted via US Postal Service
mail. Applications must be postmarked December 15, 2004 or later. (Applications
postmarked prior to December 15, 2004 wi1l be returned to the applicant for resubmittal.)
All applications postmarked December 15,2004 wi1l be treated as "Day One" applications.
If demalld exceeds the funds available, funds will be allocated based upon the procedure
described in the footnote below. 2
The key steps summarizing the entire incentive process are outlined below:
1) Public agency project sponsor submits application to the Air District post-marked on or
after December 15, 2004.
2) Project sponsor submits Res01ution from governing board. (Resolution maybe
submitted at time of initial application, or up to 30 calendar days after initia1 application
submittal date.)
3) Air District evaluates application, issues award letter alld incentive voucher (iffunds are
available) within 15 working days ofreceipt of application. Voueherrequires that
2 Ifon Day One (or any subsequent day).. the total amount offunds requested exooods the available funds, then
the available funds will be allocated among the applicants as follows:
. Applications requesting less than $50,000 will be fully funded, if sufficient funds are available.
. Applications requesting $50,000 or more will be funded on a prorated basi,. All applko.tions
requesting $50,000 or more would be offered an equal prorated percentage of funds relative to the
amount of incentive funds requested.
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BAAQMD Draft Guidelines eWCV Incentives . November 2004
SWCV fleet issue purchase order for the equipment (retrofit devices or natural gas
trucks) within 90 calendar days of Air District incentive award date.
4) Air District sends incentive funding agreement to project sponsor for signature.
5) Project sponsor returns signed incentive funding agreement to Air District (within 30
calendar days).
6) SWCV fleets issues purchase order for equipment within 90 calendar days of Air District
incentive award date. Project sponsor submits copy of purchase order to thc Air District.
(The Air District may cancel the incentive award if the SWCV fleet fails to issue the
purchase order, and to provide documentation thereof to the Air District, within the
required 90-day timerrame.)
7) SWCV fleets takes delivery of equipment covcred by incentive agreement.
8) Project sponsor submits reimbursement request and documentation to Air District.
9) Air District issues payment of incentive funds to project sponsor.
10) Project sponsor submits allnual status report on equipment purchased with incentive
funds, and status ofrranchise agreemcnt with private SWCV fleet, for the duration of the
usefullifc of the equipment (i.e., fivc years for CJeaire Longview devices, and eight
years for new natural gas trucks).
Date of Purchase Order
Applicallts may request incentive funds for eligible equipment that is ordered November 22,
2004 or later (i.e., SWCV fleet issues the purchase ordcr November 22, 2004 or thereafter).
Applicants may choose to issue purcha:¡,:e orders for eligible equipment prior to receiving a
formal incentive award letter from the Air District at their own risk. The Air District cannot
provide allY advallee guarartee that allY application or project will be funded.
Incentive Funding Agreement
Public agencies that receive incentive awards will be required to execute a funding
agreement with the Air District. The funding agreement will specify the terms of the
incentive, and the responsihilities of the public agency to ensure that all equipment
purchased with incentive funds is used in compliance with the terms of the agreement. The
funding agreemcnt will include a provision to require that all equipment purchased with
incentive funding must be used within the boundaries of the Air District for the duration 0 f
the project life_ Equipment purchased with SWCV incentive funds may be sold or
transferred to another entity for continued operation within the jurisdiction of the Air
District, subject to advance written approval by the Air District.
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