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Home My WebLink About48- Public Services CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: James Howell, Director Subject: Resolution to approve application for Grant Funds from SCAQMD for ® Dept: Public Services heavy duty vehicle alternative fuel program. R/ Date: June 15, 1995 G� Synopsis of Previous Council Action: No previous action. MAY 9'q-F-4-,m 5:04 Recommended Motion: Adopt Resolution Signature' Contact person: James Howell, Director of Public Services Ph 5140 Supporting data attached: Ward: N/A FUNDING REQUIREMENTS: Amount: $250,000 Source:(Acct. No.) 527-412-5193/527-413-5193 Acct. Description) Grant Funds Finance:' Council Notes: Refuse Fund currently contains sufficient funds; funds for this grant will be included in FY96-97 Division Budget. Agenda Item No. `� CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT The Public Services Department is requesting authorization to submit an application in response to the South Coast Air Quality Management District's Alternative Fuels Heavy Duty Vehicles grant program. This grant program is for a $600,000 project which includes the conversion of seven Refuse Division vehicles from diesel to Liquified Natural Gas, construction of a Liquified Natural Gas refueling station in partnership with San Bernardino Associated Government (SANBAG), and field testing of a new alternative fuel. The City, through it's Refuse Division, will provide a matching fund of $250,000 as part of this application. In September of 1990, Assembly Bill 2766 was enacted authorizing the imposition of an additional motor vehicle registration fee of$4.00. Funds are provided to the South Coast Air Quality Management District for the implementation of programs designed to reduce air pollution from mobile sources pursuant to air quality management plans and provisions of the California Clean Air Act. These monies are distributed through a competitive grant process. To determine which projects should be funded by the grant program, the Mobile Source Air Pollution Reduction Review Committee (MSRC) was established to make recommendations and review proposals. On April 12, 1996, the MSRC released RFP #9596-43, titled "Supplemental Work Program, Alternative Fuels - Heavy - Duty Vehicles", from which $1.8 million will be distributed to qualified entities from the public and private sectors. This grant program targets air pollution emissions from heavy duty trucks with a gross vehicle weight of 14,000 lbs and higher. Heavy duty trucks (HDT) account for only 4% of the vehicle population in California, but contribute nearly 50% of the oxides of Nitrogen (NOx) and over 80% of the on-road particulate matter. Currently, the City of San Bernardino's Refuse Division operates a fleet of fifty-six heavy duty refuse collection vehicles, which are the target of this grant program. The City is proposing the following three projects under this grant program: • INSTALLATION OF LIQUEFIED NATURAL GAS (LNG) ENGINES IN SEVEN REFUSE TRUCKS - The City proposes to re-power seven existing refuse trucks with engines designed to operate on LNG. These trucks would be classified as "Ultra Low Emissions Vehicles" certified by the California Air Resources Board. The seven existing engines and their components will be placed in inventory for use as spares for the refuse fleet. • CONSTRUCTION OF A REGIONAL LIQUEFIED NATURAL GAS REFUELING STATION - The City would be a partner in an LNG refueling station in conjunction with other stake holders via San Bernardino Associated Governments (SANBAG). The station would be located within the corporate boundaries of the City. • ALTERNATIVE FUEL END-USER DEMONSTRATION PROGRAM - In addition to the seven re-powered refuse vehicles, the City would participate in an end-user demonstration program that would utilize a new fuel known as "A-21". The City is proposing to convert two vehicles to use this new fuel. This would permit field data collection, allowing real-time data collection which may permit further development of the fuel. Grant funds will also be available for mechanic training, user/public awareness and educational programs to maximize public relations benefits to the City. Participation in this program would place the City of San Bernardino on the forefront of alternative fuels technology, resulting in significant national recognition for creative and innovative environmental programs. Under the grant, the minimum proposal amount requested from the MSRC is $250,000. A portion of these funds, up to $100,000 must be used for fueling infrastructure. Total cost for this program is estimated at$600,000, of which the City is proposing a commitment of$250,000 in funds, with the intent of receiving $350,000 of grant funds from the MSRC. The City's match for this grant would be from the Refuse Division Enterprise Funds. The refuse fund currently contains sufficient funds and will be included in the FY96-97 budget submission. Staff recommends Council approve submission of this proposal for grant funds from the South Coast Air Quality Management District's Mobile Source Air Pollution Reduction and Review Committee Discretionary Fund Heavy Duty Vehicle RFP (#9596-43). J e R. Howel ector of Public Services ORIGINW City of San Bernardino LNG Grant Cost and Benefit Analysis Item City Contribution Grant Funds LNG Fuel Facility $100,000.00 $100,000.00 Grant Management and $50,000.00 Administration Purchase seven (7) LNG $245,000.00 Engines Installation & Configuration of $140,000.00 Engines Value of two existing engines <$30,000.00> placed in inventory for replacement as needed Sale of five removed engines <$75,000.00> Testing & Analysis for $29,400.00 emissions monitoring Hardware and Software $3,500.00 Equipment to conduct monitoring and analysis Net Cost/ (Benefit) <$5,000.00> $567,900.00 This table demonstrates actual cash outlay and income to the City as a result of submission of this grant application. Entered into Record at �, ,, 6 ��/�1� CouncillCmyDevCma Mtg: by re Agenda Item City ClerkICDC Secy City of San Bernardino City of San Bernardino LNG Grant Fund/Contribution Item Grant Funds City Match TOTAL GRANT LNG Fuel Facility $100,000.00 $100,000.00 $200,000.00 Grant Management and $50,000.00 $50,000.00 Administration Purchase seven (7) LNG $245,000.00 $245,000.00 Engines Current market value of seven $607,110.00 $607,110.00 automated side load refuse trucks Installation & Configuration of $140,000.00 $140,000.00 new engines Testing & Analysis for $29,400.00 $29,400.00 emissions monitoring Hardware and software $3,500.00 $3,500.00 equipment to conduct monitoring and analysis. Total Funds and City Match: $567,900.00 $707,110.00 $1,275,010.00