BOARD MEETING DATE: March 12, 1999 AGENDA NO. 11
PROPOSAL:
Execute Contract to Cosponsor L/CNG Fueling Station Evaluation and Upgrade
SYNOPSIS:
The L/CNG fueling station at UPS Ontario Airport has experienced some operational problems since completion. Significant LNG technology improvements and advancements have been made since that time. The proposed project would incorporate this advanced technology into this station. The design, engineering and development completed in this project will be documented and made available to industry, ensuring future LNG and L/CNG refueling station advancement. Total cost to the AQMD for this project will not exceed $35,000; the Gas Research Institute will provide $40,000, for a total project cost of $75,000.
COMMITTEE:
Technology, February 26, 1999, Recommended for Approval
RECOMMENDED ACTION:
Authorize the Chairman to execute a contract with Gas Research Institute in an amount not to exceed $35,000 to cosponsor L/CNG fueling station evaluation and upgrade.
Barry Wallerstein, D.Env.
Executive Officer
Background
Air quality and health impacts of diesel exhaust have led the AQMD and others to focus attention on reducing diesel exhaust emissions from heavy-duty vehicles. Natural gas engines have less than one-half the NOx and particulate emissions of their diesel counterparts. The AQMD has been active in cosponsoring the development and demonstration of low emission natural gas engine technologies, and commercializing these technologies. In recognition of the contribution of heavy-duty vehicles to the emissions inventory and the difficulty in commercializing low emission technologies, $25 million was placed in ARB’s fiscal year 1998-99 Budget to provide incentives for low emission technologies.
However, natural gas refueling station technology, particularly liquefied natural gas (LNG), is still improving. Between 1993 and 1997, several LNG and liquefied-to-compressed natural (L/CNG) fuel stations were constructed in various locations throughout California, Texas, and Idaho. These stations have experienced some operational problems since their inception. These problems have caused some delays in the refueling of vehicles, or prevented refueling altogether. A primary concern is the impact that the LNG and L/CNG station performance is having on fleets that were early adopters of LNG use within major market segments, including those currently implementing significant numbers of LNG trucks into their fleets.
Proposal
The Gas Research Institute (GRI) proposes that the AQMD join an effort to upgrade existing LNG fueling facilities, and provide a report on the improvements made in order to benefit future LNG station construction. Specifically, the AQMD will cofund upgrade of the LNG and L/CNG station designed and installed adjacent to UPS at the Ontario Airport. This station provides public refueling capability and has been utilized by Conway Trucking and Ace Hardware. This station has good freeway and site access, and has potential to be highly utilized in the future.
Some of the deficiencies experienced at this station are:
GRI proposes to undertake the correction of these deficiencies so that the station is reliable, efficient and user friendly. All work will be documented, specifying the benefits and technical advancements in terms of station equipment and customer value. The report will be completed in such a manner as to use as a resource for the future design and operation of LNG and L/CNG refueling stations.
Benefits to AQMD
The proposed project is included in the October 1998 Update of the Technology Advancement Plan under category 98M4-2, "Infrastructure Development to Support Clean Fuel Vehicles." AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low emission, heavy-duty vehicles. AQMD has also supported the role of the Interstate Clean Transportation Corridor (ICTC) in commercializing low emission alternative fuel technologies.
For the Carl Moyer Program, and other incentive programs, to be successful, fleets and other vehicle users must be able to rely on reliable and efficient refueling facilities. The proper operation of existing stations must be ensured, and those designing future stations must have access to information that will facilitate their design, construction and operation. The primary benefit of this project will be to help resolve these refueling station challenges.
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.(1): Projects involving cost sharing by multiple sponsors. It is in the best interest of the AQMD to join with GRI to improve the reliability and durability of existing LNG and L/CNG refueling stations.
Gas Research Institute is a non-profit organization whose members include utilities, fuel producers, and others in the natural gas industry. GRI supports a variety of research, development and demonstration efforts supporting the development and commercialization of natural gas engines and vehicles,
Resource Impacts
Total cost to the AQMD for the proposed project is $35,000; GRI is contributing $40,000. Total project cost is $75,000.
Sufficient funds are available in the FY 1998-99 Budget, from revenues received from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels in both sectors, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.
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