NESCAUM - Sole Source justification final - signed.pdf

SOLE-SOURCE DETERMINATION AND JUSTIFICATION

FOR SUPPLIES AND SERVICES

To: DEQ Procurement Section

From: Department of Environmental Quality – Air Quality Division

Designated Procurement Officer: Lydia Emer, DPO (Wade Sadler, Acting DPO)

Agency Analyst/Procurement Specialist: Stephanie Brandon

Date: 10/13/2026

Re: Sole Source Determination pursuant to Oregon Revised Statute (ORS) 279B.075 and Oregon Administrative Rule (OAR) 125-247-0275

Part A

1. Authority to enter into a Sole-Source Contract: OAR 125-246-0170(2)(c)(H)

2. Estimated Total Value of Contract: $125,000

3. Subject of Contract: Multi-State Clean Vehicle Program Support

4. Background:

The Oregon Department of Environmental Quality (DEQ) requires contractor support services for multi-state coordination and technical assistance related to clean vehicle regulations and implementation. It is DEQ’s intent to execute a contract by January 1, 2027 to support ongoing coordination with California and other Section 177 states on clean vehicle policy, implementation, compliance, and future rule development activities. “Section 177 states” are those that, under Section 177 of the Clean Air Act (42 U.S.C. § 7507), have opted to adopt California’s stricter motor‑vehicle emission standards in place of federal standards.

This sole source justification applies to the purchase of facilitation, coordination, technical analysis, and policy support services associated with California vehicle emission standards adopted by Oregon, including Low Emission Vehicle (LEV), Zero Emission Vehicle (ZEV), Advanced Clean Trucks (ACT), Advanced Clean Cars II (ACC II), Heavy-Duty Low NOx Omnibus, and related future rulemakings, including California’s forthcoming Drive Forward actions for light-, medium-, and heavy-duty vehicles. The contract may also support future coordination efforts related to charging and fueling infrastructure, federal regulatory changes, market readiness, and implementation challenges associated with clean transportation programs.

Under the Clean Air Act, California is the only state authorized to adopt its own motor vehicle emission standards. Other Section 177 states, including Oregon, have chosen to adopt California’s standards.

Oregon has historically coordinated closely with California and other Section 177 states on implementation of these programs. Recent federal actions and ongoing litigation involving California’s waivers for ACC II, ACT, and the Heavy-Duty Low NOx Omnibus rule have created significant uncertainty for states implementing these programs. Continued coordination among states remains critical to

Sole-Source Determination_rev01-31-24 Page 2 of 4 maintaining alignment where feasible, evaluating implementation pathways, and supporting Oregon’s long-term air quality and climate goals.

The contracted services will include facilitating interstate meetings and workgroups; coordinating discussions among states, automakers, manufacturers, utilities, fleets, and other stakeholders;

conducting technical and policy analysis; and representing the collective interests of participating states in discussions with the California Air Resources Board, U.S. EPA, USDOT, and related entities. The work will also include support related to charging and fueling infrastructure deployment, market and consumer readiness, and the impacts of evolving federal policies and funding.

DEQ intends to contract with Northeast States for Coordinated Air Use Management (NESCAUM), a nonprofit association of state air quality agencies that has supported states implementing California vehicle emission standards and related technical and policy coordination efforts for more than two decades. NESCAUM has unique institutional knowledge, longstanding relationships with California and Section 177 states, and extensive experience facilitating interstate coordination on these programs.

The estimated cost of the contract is $25,000 annually for five years, for a total estimated contract value of $125,000. DEQ is seeking a sole source procurement because NESCAUM is the only organization with established expertise and existing multi-state coordination infrastructure dedicated specifically to Section 177 state implementation of California vehicle emission programs. Use of another contractor would require substantial time and resources to recreate the institutional knowledge, stakeholder relationships, and coordination framework already in place.

DEQ has a current contract with NESCAUM (#033-23, #PO-34000-00004809, effective 1/1/2022 – 12/31/2026) for similar services and a NTE amount of $125,000. DEQ is conducting a new sole source procurement since DEQ’s business practice is to re-solicit contracts after 5 years after reassessing the agency’s continued need for the services.

5. Findings:

A. Market Research Overall Finding.

DEQ’s market review found that the services needed under this contract are highly specialized and are common to states that have adopted, or are implementing, California’s vehicle emission standards under Clean Air Act Section 177. These services include multi-state facilitation, technical and policy analysis, coordination with California and federal agencies, and support on implementation issues related to LEV, ZEV, Advanced Clean Cars II, Advanced Clean Trucks, Heavy-Duty Low NOx Omnibus, future Drive Forward rulemakings, and related charging and fueling infrastructure needs.

This review did not identify another vendor with NESCAUM’s specific combination of technical expertise, policy experience, and existing multi-state coordination structure for Section 177 vehicle emission programs.

The most practical and cost-effective way to meet these shared needs is for one entity to provide services on behalf of participating states, with costs shared across the group. This avoids duplicative state-by-state work and ensures more consistent technical analysis, policy coordination, and implementation support. It would cost significantly more for Oregon to independently recreate the same level of expertise, facilitation, and access to coordinated state discussions.

NESCAUM is uniquely positioned to provide these services. It is a nonprofit association of state air quality agencies that provides scientific, technical, analytical, and policy support to air quality programs, and it

Sole-Source Determination_rev01-31-24 Page 3 of 4 has long supported states on adoption and implementation of California’s vehicle emission standards.

NESCAUM also facilitates the Multi-State ZEV Task Force, which was established in 2013 to support state ZEV adoption through technical analysis, peer-to-peer discussion, and consensus recommendations as well as the NESCAUM Mobile Sources Committee to discuss and coordinate implementation of ZEV and Omnibus regulations. NESCAUM has also developed public technical resources on Advanced Clean Cars II and Advanced Clean Trucks and is preparing information for the upcoming Drive Forward rulemaking, further demonstrating its direct expertise in this regulatory area.

DEQ also considered whether other organizations, such as the National Association of Clean Air Agencies (NACAA), the U.S. Climate Alliance, or the Better World Group could provide comparable services.

NACAA is a national association of air pollution control agencies and provides broader clean air coordination and advocacy support, but DEQ did not identify it as offering the same dedicated technical and facilitation support for Section 177 implementation. The U.S. Climate Alliance supports state climate coordination and has engaged on California waiver and clean vehicle issues, but its work is focused on member-state climate priorities and does not provide the same standing Section 177 technical implementation structure available through NESCAUM. The Better World Group is a communications and advocacy organization, rather than a technical regulatory coordination body like NESCAUM. Their work tends to focus more on messaging, stakeholder engagement, campaign strategy, and public/political support for clean transportation policies.

DEQ’s prior market review also included direct outreach to NACAA and USCA regarding whether they could provide these services. Both NACAA and USCA declined to participate in that effort, indicating neither had the technical expertise needed to support the level of engagement and facilitation required.

Based on the current market review and DEQ’s prior procurement history, NESCAUM remains the only known organization with the specific experience, relationships, and existing coordination structure needed to provide these services efficiently and effectively.

And

B. Findings of Fact pursuant to OAR 125-247-0275(2) must include, at a minimum, one of the following:

1. Pursuant to OAR 125-247-0275(2)(a): Compatibility. Provide findings supporting your determination that the efficient utilization of existing goods requires the acquisition of compatible goods or services from only one source.

NESCAUM serves as the sole entity assisting states in the adoption and implementation of California’s vehicle emissions programs.

2. Pursuant to ORS 279B.075 (2)(b): Exchange of Software or Data. Provide findings supporting your determination that the goods or services required for the exchange of software or data with other public or private agencies are available from only one source.

Not applicable

3. Pursuant to ORS 279B.075 (2)(c): Pilot or Experimental Project. Provide findings supporting your determination that the goods or services are for use in a pilot or an experimental project.

Not applicable

Sole-Source Determination_rev01-31-24 Page 4 of 4

4. Pursuant to ORS 279B.075 (2)(d): Other findings that support the conclusion that Supplies and Services are available from only one source may include but are not limited to considerations of: unique design, availability, geographic location, exclusive authorized representative, cost of conversion, and warranty services.

NESCAUM provides a unique combination of technical expertise, institutional knowledge, and established multi-state coordination specific to Section 177 vehicle emission programs that DEQ was unable to identify elsewhere through market research. Its longstanding relationships with California, other states, and industry stakeholders allow for efficient coordination and continuity that would be difficult and costly to replicate with another contractor.

Approved By:

Wade Sadler, Interim Assistant Director-Acting DPO Date

10/13/2026 https://oregondeq.na2.documents.adobe.com/verifier?tx=CBJCHBCAABAA27T3rbWs5U4GLIarM6HSzM3jYMrSjgAQ