BOARD MEETING DATE: June 16, 2000 AGENDA NO. 4

Alternative fuel vehicles, such as natural gas vehicles (NGVs), have demonstrated significantly lower VOC, NOx, CO and toxic emissions than gasoline vehicles. Lack of a well-established CNG fueling infrastructure is a major barrier, however. Currently, the CNG refueling industry builds and installs a wide variety of expensive, non-standardized, application-specific refueling systems.

The CNG refueling industry consists of numerous companies that design and install a wide variety of non-standardized, application-specific refueling systems. Virtually all CNG stations are custom built to match site parameters, including the so-called "suction" pressure of the natural gas line), often resulting in unnecessarily costly facilities. The lack of CNG fueling stations compared to conventional petroleum stations presents a major barrier to expansion of NGV vehicle use.

The City of Banning, Riverside County, and the Riverside County Transportation Commission will initiate a project to evaluate the various CNG fueling systems currently available, then provide up-to-date information that will assist other relevant government agencies to evaluate future proposals and incentive programs. Detailed station performance specifications will be established that 1) clearly state system expectations for refueling times and capacities as a function of fleet characteristics, 2) start-up procedures and responsibilities for the facility, and 3) how essential maintenance items will be performed over the life of the station. These specifications will focus on standardized and modularized CNG stations and equipment to the maximum possible extent. A discussion on least-cost bids being used as a major criterion for vendor selection versus experienced, qualified vendors will be included in a handbook developed to assist fleets investing in their own CNG fueling stations. In addition, an outline of services that should be provided upon station start-up will be included. Funds will then be used to cost-share an actual CNG station employing the above recommendations at a site within the City of Banning. This site is of added significance since it is located on a strategic portion of the I-10 Freeway.

The proposed project is included in the March 2000 update of the Technology Advancement Plan under Project 2000M3-1 Development of Advanced Natural Gas Compressors for Refueling Stations. The AQMP relies on the expedited implementation of advanced technologies and clean–burning fuels in Southern California to achieve air quality standards. By demonstration of the standardized, modular and lower cost technology identified, benefits from this project will accrue to the school districts and businesses located within the Basin contemplating the use of alternative fueled vehicles. The emission benefits obtained by switching from 10 diesel-powered school buses and 10 diesel-powered garbage trucks to NGVs amount to 71 tons of NOx emission reductions over the life of the vehicles.

On a larger scale, the study will provide a lower cost alternative to conventional custom-built stations. This in turn will make NGV refueling stations, particularly fast-fill stations, more affordable, thereby facilitating the introduction of low emission, alternatively fueled vehicles initially in private and public fleets, and later, to consumers at large. Such penetration of NGVs will provide direct emissions reductions of NOx, VOC, CO, PM, and toxics throughout the Basin.

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.: Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interest of the AQMD. Specifically, these circumstances are: B.2.d.(1) Project involving cost sharing by multiple sponsors.

The total amount of AQMD funding for this project shall not exceed $140,000. Partners and cost share are detailed as follows:

Funding Partner	Funding
RCTC	$385,000
Riverside County	$100,000
City of Banning	$100,000
AQMD	$140,000
Total Project Costs	$725,000

Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting 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 sources to support projects to increase the utilization of clean fuels, 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.