BOARD MEETING DATE: March 14, 1997 AGENDA NO. 11
Proposal:
Issue RFP to Develop and Demonstrate Optimized Design for Liquefied Natural Gas Storage and Dispensing for Fleet Vehicle Applications
Synopsis:
LNG is of interest to a growing number of truck fleets; however, storage and dispensing of cryogenic LNG for truck fleet applications has not been optimized. Standardized design of LNG dispensing stations is needed to minimize vapor loss; retain fuel composition over extended periods; and minimize construction, operation and maintenance costs. This action is to issue an RFP for development and demonstration of a cost-effective design for storage and dispensing of LNG for truck fleet applications. Proposed AQMD funding for this project is $300,000.
Committee:
Technology, February 28, 1997, Recommended for Approval
Recommended Action:
Issue RFP # 9697-41, Develop and Demonstrate an Optimized Design for Liquefied Natural Gas (LNG) Storage and Dispensing for Fleet Vehicle Applications in an amount not to exceed $300,000.
James M. Lents, Ph.D.
Executive Officer
Background
Over the last several years, interest has steadily grown in the use of LNG for heavy duty truck applications. Among the advantages of LNG is its relatively high energy density per volume of fuel stored compared to CNG. However, the storage and dispensing of cryogenic LNG for truck fleet applications has not yet been optimized. For example, fuel vapors must be carefully managed to minimize the amount of boil-off, or fuel vapor loss, which can occur if fuel is stored for extended periods of time.
One of the key issues in the early implementation of LNG in truck fleet applications is to design and deploy convenient and cost-effective on-site fuel storage and dispensing systems for LNG. In storage, cryogenic liquids warm slowly, gradually increasing pressure as the liquid absorbs heat. The key to a successful LNG system is to control the saturation pressure of the liquid to minimize the boil-off of gases. For truck fleets that consume less than about 5,000 gallons per day of LNG, long storage intervals for LNG result in fuel vapor loss due to boil-off and, potentially, changes in fuel composition.
To further enhance the utilization of LNG by large fleet truck operators, an improved design of LNG dispensing stations is needed. An optimized LNG facility would have the following characteristics:
There are other considerations which are also important in the design and operation of LNG stations. A systems approach is essential to optimize the various operational needs of an LNG station. The vapors exchanged between the vehicle on-board fuel tank and the dispensing station holding and bulk tanks needs to be efficiently managed. The method used to manage bulk fuel vapors impacts the design of the CNG portion of the system, if a dual-dispensing station is planned. The refueling station design also needs to account for any possible sensitivity to fuel composition variation from bulk delivery trucks and from truck fleets served by the facility. Easy self-dispensing (using a single hose), self-training, and self-serve capability are also desirable features. Broader system design considerations include minimizing the space requirements for the system, minimizing gas venting, and having the ability to handle fuel odorants. When all of these issues are taken into consideration from a systems perspective, it is expected that there will be greater prospects for uniform permitting of LNG refueling systems.
Proposal
This RFP solicits cost-shared proposals for developing and demonstrating an optimized, 10,000 gallon capacity, LNG refueling system. The solicitation focuses on demonstrating an advanced systems approach to LNG refueling. It is for refueling, dispensing, and storage technologies for which proofs-of-concept have already been demonstrated, not for basic research. Proposals should focus on developing and delivering to the AQMD a detailed equipment design, together with a demonstration site plan. In addition, a subsequent demonstration should be conducted in or near the South Coast Air Basin. Proposals must target a station design and demonstration which reflects the following elements:
In addition, factors such as incremental equipment cost, proposer’s related previous project experience, and feasibility of near-term commercialization will be considered. Scoring preference will be given to proposals that include the involvement of original equipment manufacturers of LNG refueling equipment. A single contract award is expected to result from this solicitation. A minimum of 50 percent cost-sharing by participants is required, with scoring preference provided for a higher percentage. It is anticipated that the total system cost to design and demonstrate an optimized LNG refueling system will be in the range of $600,000 to $1,000,000.
The proposed project is included in the October 1996 update of the Technology Advancement Plan as proposed project M4-1, LNG Fueling Facility Design Considerations. The major benefits of this project include the improved design, operational flexibility and lower construction cost for LNG storage and dispensing, compared to current state-of-the-art systems. A significant decrease in waiting time for vehicle refueling during intermittent use periods is also expected, along with enhanced vapor control. Greater consistency in delivered LNG fuel quality will also result, combined with the ability to refuel a wide variety of vehicle/engine combinations. Due to the synergy of these benefits, enhanced commercial potential for LNG use in truck fleets and resulting emissions benefits is also anticipated.
Outreach
In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids will be published in the following publications: The Black Voice News, Chinese Daily News, Eastern Group Publications, El Chicano, The Excelsior, Inland Empire Hispanic News, Inland Valley Daily Bulletin, Korea Central Daily, La Opinion, La Voz, Los Angeles Sentinel, Los Angeles Times, M/W/DVBE Source, Orange County Register, Philippine News, Precinct Reporter, Rafu Shimpo, Riverside Press Enterprise, the San Bernardino Sun, and the State of California Contracts Register. Additionally, potential bidders will be identified through Los Angeles County’s Directory of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Directory of Certified Firms published by the Los Angeles County Metropolitan Transportation Authority; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; the Caltrans electronic bulletin board listing of Disadvantaged and Women Business Enterprises; the AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Copies of the RFP will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and will be placed on the Internet at AQMD’s Web site [http://www.aqmd.gov] and on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.
Bid Evaluation
Proposals received will be evaluated by a panel selected according to the criteria described in the attached RFP # 9697-41. Due to the particular importance of technical qualifications in awarding advanced technology contracts, staff has proposed in the RFP to weight a significant portion of the cost component of the scoring by technical strength, in effect a form of cost-effectiveness. This form of scoring differs from the general practice of using total costs as the sole criterion, as may be interpreted from the Board’s Consultant Selection Policy. This change was brought to the attention of the Technology Committee, which approved this revision.
Proposition 209 Compliance
It is AQMD policy to award additional points or cost benefits for minority-owned, woman-owned, and/or disabled veteran-owned business enterprises. On November 5, 1996 California voters approved Proposition 209 which prohibits discrimination or granting preferential treatment based upon race, ethnicity, color, sex or national origin in the operation of public employment, public education, or public contracting. (Proposition 209 does not address disabled veteran-owned business enterprises). On December 16, 1996, the Federal District Court issued an order applicable to all government agencies in California prohibiting enforcement of Proposition 209. Therefore, the AQMD’s existing policy remains in effect. Should the status of the law change at any point during the process of issuing an RFP or RFQ or entering into a contract pursuant to a previously issued RFP or RFQ, the AQMD will abide by the law in effect at the time the action is taken and any RFP or RFQ will be deemed modified to comply with existing law and any provisions in conflict with existing law will not be enforced.
Resource Impacts
The total amount of AQMD funding for the proposed RFP will not exceed $300,000. The total project costs, including matching funds and/or co-funding, is expected to be $600,000 to $1,000,000. Sufficient funds are available in the FY 1996-97 Budget.
RFP # 9697-41, Develop and Demonstrate Optimized Design for Liquefied Natural Gas Storage and Dispensing for Fleet Vehicle Applications.