South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: November 17, 2000 AGENDA NO. 4
Execute Contract to Cosponsor Enhancement of L/CNG Fueling Station Evaluation and Upgrade
SYNOPSIS:
The proposed project would incorporate advanced LNG fueling technology at the UPS Ontario Airport facility. The station is a prime location to provide accessibility to fleets in the Inland Empire. The Board originally approved this effort in March 1999. At that time, the Gas Research Institute (GRI) was unable to secure the necessary technical partner to upgrade the station. GRI has now secured the cooperation of ALT-USA to perform the upgrade. Total cost to the AQMD for this project will not exceed $35,000. Total project cost is approximately $179,733; the Gas Research Institute will provide $35,000, and ALT-USA will contribute $104,733.
COMMITTEE:
Technology, September 22, 2000, Recommended for Approval
RECOMMENDED ACTION:
Authorize the Chairman to execute a contract with Gas Research Institute for enhancement of L/CNG fueling station, in an amount not to exceed $35,000.
Barry R. 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. The AQMP has identified the use of low-emission alternative-fuel engines in these vehicles as a potential option to reduce pollutant emissions. Rules 1192, 1193, 1194 and 1186.1 identify the use of low emission, alternative fueled, transit buses, shuttles, refuse trucks and street sweepers. A state-funded, low-emission school bus program, and the AQMD’s Adopt-a-School Bus Program will provide incentives for the purchase of low-emission natural gas school buses. The implementation of several hundred natural gas vehicles in the near future will require establishment of fueling facilities to support these vehicles.
Proposal
The Gas Research Institute (GRI) proposed 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. In March 1999, the AQMD Board approved $35,000 to cofund upgrade of the Ontario Airport UPS L/CNG. However, GRI was unable to secure appropriate technical support for this effort and delayed action. GRI has now entered into an agreement with Applied LNG Technologies to perform and cofund the needed enhancements to the station.
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
AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low emission, alternative fuel technologies within its Technology Advancement Office. The AQMD has also supported a number of activities directed to commercialization of low-emission alternative fuel technologies. The proposed project is included in the March 2000 Update of the Technology Advancement Plan under category2000M3-1, "Development of Advanced Natural Gas Compressors for Refueling Stations." While not providing any direct emission reductions, the proposed station enhancements will assist in the commercialization of natural gas heavy-duty vehicles by providing a reliable source of fuel. For the Carl Moyer Program, and other 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.: 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): Projects involving cost sharing by multiple sponsors.
This project will be cofunded by the Gas Research Institute ($35,000), and Applied LNG Technologies USA ($104,733).
The Gas Research Institute has agreed to manage this project. GRI 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.
Applied LNG Technologies USA is an operator of LNG fueling stations and a fuel provider. Applied LNG was selected by GRI to perform this work through a competitive solicitation.
Resource Impacts
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. Total cost for the proposed project is $179,733. Total AQMD cost will not exceed $35,000.
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.
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