South Coast Air Quality Management District

Execute Contracts for Development of LNG Refueling Stations in South Coast Air Basin

SYNOPSIS:

At its October Meeting, the Board approved release of an RFP to solicit proposals for co-funding the development of LNG refueling stations in the AQMD’s jurisdiction using funds from Rule 1309.1 – Priority Reserve Fund. The RFP provides funding for the construction of publicly accessible LNG-L/CNG refueling stations in areas where refuse fleets operate in support of the AQMD fleet rules. Twelve proposals were received by the RFP deadline of Tuesday, December 4, 2001. This action is to approve multiple contract awards from this RFP and to approve additional funding for this purpose.

COMMITTEE:

Technology, December 7, 2001, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute the following contracts using funds from the Rule 1309.1 – Priority Reserve Fund.
   
   
   1. A contract with Browning-Ferris Industries, in an amount not to exceed $500,000, to offset the costs of purchasing and installing new LNG-L/CNG fueling systems at their facility in Sunshine Canyon.
      
      
   2. A contract with the City of San Bernardino, in an amount not to exceed $143,208, to offset the costs of purchasing and installing new LNG-L/CNG fueling systems at their facility in San Bernardino.
      
      
   3. A contract with CR&R Inc., in an amount not to exceed $582,474, to offset the costs of purchasing and installing two new LNG-L/CNG fueling systems at their facilities in Stanton and San Juan Capistrano.
      
      
   4. A contract with R.F. Dickson Company, Inc., in an amount not to exceed $250,000, to offset the costs of purchasing and installing new LNG-L/CNG fueling systems at their facility in Downey.
      
      
   5. A contract with Waste Management of San Gabriel, in an amount not to exceed $400,000, to offset the costs of purchasing and installing new LNG-L/CNG fueling systems at their facility in Baldwin Park.
      
      
2. Redirect $1,563,682 from the previously approved $3,000,000 set-aside for LNG fuel production within the Basin, identified in the September 21, 2001 Board action out of the Clean Fuels Fund, to fund additional fueling stations.
   
   
3. Authorize the Chairman to execute the following contracts using funds from the AQMD Technology Advancement Clean Fuels Fund (Fund 31).
   
   
   1. A contract with Taormina Industries, L.L.C. in an amount not to exceed $9,318 from the Rule 1309.1 Priority Reserve Fund and an amount not to exceed $203,682 to offset the costs of purchasing and installing new LNG-L/CNG fueling systems at their facility in Anaheim.
      
      
   2. A contract with USA Waste of California, Inc. (Waste Management), in an amount not to exceed $400,000, to offset the costs of purchasing and installing new LNG-L/CNG fueling systems at their L.A. Metro Hauling District facility in Long Beach.
      
      
   3. A contract with Waste Management Recycling and Disposal Services of California, Inc. (Waste Management), in an amount not to exceed $400,000, to offset the costs of purchasing and installing new LNG-L/CNG fueling systems at their Bradley Landfill facility.
      
      
   4. A contract with County Sanitation Districts of Los Angeles County, in an amount not to exceed $560,000, to offset the costs of purchasing and installing new LNG-L/CNG fueling systems at their Puente Hills Landfill facility.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At its September 2001 Meeting, the Board allocated up to $2,000,000 from Rule 1309.1 – Priority Reserve for funding assistance for LNG Refueling Stations to co-fund the development of LNG-L/CNG refueling stations within the AQMD’s jurisdiction. The allocated funds would assist waste collection operations in the implementation of Rule 1193 – Clean On-Road Residential and Commercial Refuse Collection Vehicles. An RFP was released on October 19, 2001 to solicit cost-shared proposals from private and public fleet owners intending to install new fuel dispensing facility projects, with an emphasis on those facilities that will support implementation of Rule 1193.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:
 

1	Antelope Valley Press	9	Inland Valley Daily Bulletin	17	Palm Springs Desert Sun
2	Black Voice News	10	Korea Central Daily	18	Philippine News
3	Chinese Daily News	11	La Opinion	19	Precinct Reporter
4	Eastern Group Publications	12	La Prensa Hispana	20	Rafu Shimpo
5	El Chicano	13	La Voz	21	Press Enterprise
6	El Informador	14	Los Angeles Daily News	22	San Bernardino Sun
7	Excelsior, The	15	Los Angeles Sentinel	23	Orange County Register
8	Inland Empire Hispanic News	16	Los Angeles Times	24	The Wave
				25	State of California Contracts
					Register

Additionally, potential bidders were notified utilizing the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Notice of the RFP was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Proposal

A total of twelve proposals were received by the RFP closing date of December 4, 2001 proposing cost-sharing liquefied natural gas and liquefied/compressed natural gas stations. The twelve proposals received totaled $12,769,796 in infrastructure development. The requested funding for the twelve proposals is $4,883,682, well above the funds available.

Proposals received were evaluated by a diverse, technically qualified panel in accordance with criteria contained in the RFP. The proposal review panel composed of four scoring members: a Manager of the ARB for the Carl Moyer Program, an Assistant Deputy Executive Officer for Science and Technology Advancement, a Manager for Science and Technology Advancement, and a Program Supervisor for Science and Technology Advancement; one female and three male; one Asian and three Caucasian. Of the projects proposed, staff is recommending awards to the nine highest-ranking proposals which require additional funding above the amount originally approved by the Board.

However, five of the nine projects recommended for funding can be funded within the Board allocated Rule 1309.1 Priority Reserve Fund of $1,885,000 already designated for this purpose. The recommended funding for these five different facilities totals $1,875,682.

Due to the additional requests for funding assistance and the need to expand the LNG regueling infrastaructure, staff believes that four additional projects should be funded at this time. As such, staff is recommending that the Board redirect a portion of the original $3,000,000 set aside from the Clean Fuels Fund for local LNG production to fund four additional projects. Should the Board desire to proceed with the staff’s recommendation, the four projects, totaling $1,573,000, could be funded from the remaining $9,318 from the Priority Reserve allocation and $1,563,682 from the $3,000,000 in Clean Fuels Funds. The remainder of the set-aside funds, $1,436,318, would still be available for local LNG production projects. Staff believes that this remainder will provide sufficient incentives. The nine recommended projects represent a diversity in fueling type and location (see attachment). In addition to the existing infrastructure network, these new projects are strategically located to help establish a basin-wide infrastructure that will allow for fueling of all types of refuse vehicles throughout the Basin.

Benefits to AQMD

The AQMP relies on the expedited implementation of advanced technologies and clean–burning fuels in Southern California to achieve air quality standards. By constructing more natural gas fueling facilities, benefits from this project will accrue to all cities and area residents. Such new construction will provide a coordinated effort, plan for growth of the overall infrastructure, and help reduce costs associated with duplication of effort. There are economies of scale from the extensive infrastructure being planned and installed, possibly reducing the cost and making alternative refueling stations more affordable. While having no direct impact on air emission reductions, new LNG-L/CNG stations will help facilitate the introduction of low emission, natural gas fueled refuse trucks in private and public fleets in the area. Such increased penetration of natural gas fueled refuse trucks will provide direct emissions reductions of NOx, PM, and toxic compounds throughout the Basin.

Resource Impacts

Funding, in an amount not to exceed a total of $3,448,682 is available from the Rule 1309.1 – Priority Reserve ($1,885,000) and from the Clean Fuels Fund (Fund 31) ($1,563,682).

Attachment

Evaluation of Proposals RFP #P2002-19 Recommended for Awards

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