South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: August 17, 2001 AGENDA NO. 29
Execute Contracts to Upgrade Existing Compressed Natural Gas (CNG) Fueling Stations
SYNOPSIS:
On March 16, 2001, the Board authorized the release of Request for Proposals #P2001-35, to establish CNG fueling stations for public and private fleets. Twenty-seven proposals for upgrading existing stations could not be funded through this process, due to limited availability of the AES funds. After evaluation of these proposals, staff recommends to cost-share these upgrades with $1,427,912, from the Clean Fuels Fund. Pickens and Southern California Gas Company will cost-share with $582,945 and $205,988, respectively. Total project cost is $2,216,845.
COMMITTEE:
None
RECOMMENDED ACTION:
- A contract with Pickens Fuel Corporation, in an amount not to exceed $947,267, to upgrade existing CNG fueling stations at seventeen locations in the South Coast Air Basin.
- A contract with the Southern California Gas Company, in an amount not to exceed $480,645, to upgrade existing fueling stations at ten locations in the South Coast Air Basin.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
The Governing Board at its March 16, 2001 meeting, authorized the release of Request for Proposals #P2001-35, soliciting cost-shared proposals with the goal of establishing publicly accessible natural gas fueling stations for both public and private fleets within the South Coast Air Basin. The total amount of available funding for this RFP was $4,600,000 from the AES settlement. The level of required cost share was based upon the amount of grant funds requested as outlined below:
|
Total Project Cost |
Maximum AQMD Cost Share per Station |
|
Category I; up to $100,000 |
70 percent of project cost |
|
Category II, $100,001 - $500,000 |
50 percent of project cost |
|
Category III, above $500,000 |
30 percent of project cost |
A total of fifty-four proposals were received, whereas twenty-seven proposals were submitted for upgrading existing CNG fueling stations.
The Governing Board at its July 20, 2001, meeting approved multiple awards to twenty different facilities from the AES settlement fund. As limited funds were available, the awards did not include any of the twenty-seven proposals submitted for the upgrades of the existing CNG fueling stations. In this regard, the Board directed staff to evaluate the benefits and the cost of these upgrades, and to report back to the Board with a recommendation at its August 17, 2001, meeting.
Proposal
The existing CNG fueling infrastructure network is established strategically at locations within the South Coast Air Basin to provide fueling for natural gas vehicles, and meet the needs of public and private fleet operators in the areas of their operations. Pickens Fuel Corporation and the Southern California Gas Company have submitted proposals to upgrade seventeen, and ten existing CNG fueling stations, respectively. The upgrades include, but are not limited to installation of fuel dispensers, card readers, and in some cases storage bottles and canopies. A detailed list of the proposed locations with their associated costs is shown in Attachment A. The new dispensers are California Weight and Measure approved for 3,000/3,600 psi filling pressures, and are compatible to the new card readers. Due to larger diameter tubing, they provide faster fill compared to the existing dispensers, and are capable of operating twenty-four hours a day. In summary, upgrading these fueling stations would provide improved ergonomics, universal card reader capability, convenient payment system, and most importantly, improved filling. Total cost of the CNG fueling station upgrades is $2,216,846. Staff recommends to fund $1,427,912 from the Clean Fuels Fund for these upgrades. Pickens Fuel Corporation and the Southern California Gas Company will cost share the remaining balance with $582,945 and $205,988, respectively.
Benefits to AQMD
The proposed projects are included in the March 2001 update of the Technology Advancement Plan under Project 2001CFM3-1, "Development and Demonstration of Advanced Natural Gas Systems for Refueling Stations." The AQMP relies on the expedited implementation of advanced technologies in Southern California to achieve air quality standards.
Upgrading natural gas fueling stations will benefit cities and area residents in the South Coast Air Basin. The upgrades will provide efficient and user friendly infrastructure for public and private fleets, and will help expedite the introduction of natural gas fueled vehicles. The increased penetration of natural gas vehicles will in turn provide direct emissions reductions of NOx, VOC, CO, PM, and toxic compounds throughout the Basin.
Resource Impacts
Total cost to upgrade CNG fueling stations is $2,216,845. AQMD’s contribution shall not exceed $1,427,911. The remaining balance shall be co-funded by Pickens Fuel Corporation with $582,945, and Southern California Gas Company with $205,988.
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 40448.5 and 40512 and Vehicle Code 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.
Attachment
Proposed List of CNG Fueling Station Upgrades
Attachment A: Proposed List of CNG Fueling Station Upgrades
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