South Coast Air Quality Management District

Award Multiple Contracts for Natural Gas Refueling Station Infrastructure

SYNOPSIS:

On March 16, 2001, the Board approved release of a $4.6 million RFP to solicit proposals for natural gas refueling station infrastructure projects, from the AES settlement. The RFP provides funding for the construction of publicly accessible natural gas refueling stations in areas where fleets operate. Entities within the City of Los Angeles are not eligible. Fifty-four proposals were received by the RFP deadline of Friday, May 4, 2001. This action is to approve multiple contract awards from this RFP.

COMMITTEE:

Technology, June 22, 2001, Recommended for Approval
Administrative, July 13, 2001, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute the following contracts from the AES Settlement Fund:

1. A contract with OmniTrans, in an amount not to exceed $750,000, to offset the costs of purchasing and installing new L/CNG fueling systems at their bus yards in Montclair and San Bernardino.
   
   
2. A contract with Foothill Transit, in an amount not to exceed $500,000, to offset the costs of purchasing and installing a new CNG fueling system at their Pomona facility.
   
   
3. A contract with City of Long Beach, in an amount not to exceed $500,000, to offset the cost of a new LNG production facility.
   
   
4. A contract with Santa Monica Big Blue Bus, in an amount not to exceed $500,000, to offset the costs of purchasing and installing a new L/CNG fueling system in Santa Monica.
   
   
5. A contract with County Sanitation Districts of Los Angeles, in an amount not to exceed $258,750, to offset the costs of purchasing and installing a new LNG fueling system at the Puente Hills Landfill.
   
   
6. A contract with Downs Commercial Fueling Inc., in an amount not to exceed $250,000, to offset the costs of purchasing and installing a new CNG fueling system at their fueling facility in Temecula.
   
   
7. A contract with Pinnacle CNG Company, in an amount not to exceed $230,000, to offset the costs of purchasing and installing a new CNG fueling system at Ware Disposal.
   
   
8. A contract with City of Burbank, in an amount not to exceed $230,000, to offset the costs of purchasing and installing a new CNG fueling system at their city yard in Burbank.
   
   
9. A contract with City of Placentia, in an amount not to exceed $200,000, to offset the costs of purchasing and installing a new CNG fueling system at their city yard in Placentia.
   
   
10. A contract with Taormina Industries, in an amount not to exceed $200,000, to offset the costs of purchasing and installing a new LNG fueling system at their Anaheim facility.
    
    
11. A contract with Valley Vista Services, in an amount not to exceed $200,000, to offset the costs of purchasing and installing a new CNG fueling system at their City of Industry waste transfer facility.
    
    
12. A contract with Riverside County Waste Management District, in an amount not to exceed $148,350, to offset the costs of purchasing and installing a new LNG fueling system at their Agua Mansa Road facility.
    
    
13. A contract with Fullerton Joint Union High School District, in an amount not to exceed $137,300, to offset the costs of purchasing and installing a new CNG fueling system at their school bus lot in Fullerton.
    
    
14. A contract with Jurupa Unified School District, in an amount not to exceed $125,000, to offset the costs of purchasing and installing a new CNG fueling system for 34 school buses.
    
    
15. A contract with Pickens Fuel Corporation, in an amount not to exceed $106,450, to offset the costs of purchasing and installing a new CNG fueling system at Administrative Services Co-Op in Gardena.
    
    
16. A contract with Pickens Fuel Corporation, in an amount not to exceed $106,000, to offset the costs of purchasing and installing a new L/CNG fueling system at Poma Distributing Company.
    
    
17. A contract with Pickens Fuel Corporation, in an amount not to exceed $88,800, to offset the costs of purchasing and installing a new CNG fueling system at Waste Management of the Inland Empire, Moreno Valley.
    
    
18. A contract with City of Monterey Park, in an amount not to exceed $59,000, to offset the costs of purchasing and installing a new CNG fueling system at their city yard.
    
    
19. A contract with CALSTART/WestStart, in an amount not to exceed $10,350, to offset the costs of purchasing and installing a new Fuelmaker.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On February 16, 2001, the Board voted to allocate $6 million of the AES settlement for natural gas fueling station infrastructure projects with public access within the four county regions, principally outside the City of Los Angeles. On March 16, the Board authorized the release of Request for Proposals #P2001-35, soliciting cost-shared proposals for installing new natural gas fueling facilities. In order to meet public and private fleet fueling needs new natural gas fueling infrastructure needs to be developed in areas where these fleets operate. New infrastructure will help fulfill a need for fueling locations throughout the greater South Coast Air Basin.

The total amount of the RFP was $4,600,000, from the AES settlement.($1,400,00 was previously allocated to Pickens Fuel Corporation for high-mileage fleet refueling infrastructure). This funding is designed to offset capital investment costs, resulting in conveniently located, publicly accessible fueling stations.

Applications were accepted from either public agencies or private entities. Funds could only be requested for storage, dispensing, and/or electronic point-of-sale (EPOS) equipment at designated fueling facilities. Funding for EPOS equipment should have universal capability (i.e., it must accept Voyager, Visa, MasterCard and other proprietary cards where applicable). For this RFP, funding was only provided for natural gas fueling stations. While the RFP did not require components to be currently hydrogen compatible, it provided for additional points for considering hydrogen compatibility issues.

The level of required cost share was based upon the amount of grant funds requested (see table below).

AQMD staff has completed review of all applications received in response to RFP #2001-35. This Board Letter requests approval for multiple awards to 20 different facilities, representing a wide diversity in fueling type and location. In addition to the existing infrastructure network, these new projects are strategically located to help establish an infrastructure "backbone" that will allow for fueling of all types of natural gas vehicles throughout the Basin. Compressed natural gas, liquefied natural gas and liquefied/compressed natural gas stations have been proposed, as well as construction of a new natural gas liquefier by the City of Long Beach. All are essential to implementing the goals of the AQMP.

Fifty-four proposals were received, totaling $13.5 million. As limited funding was available, only those proposals that identified new or strategically located existing natural gas fueling facilities were considered for funding. Existing stations requesting upgraded equipment were not considered for priority funding at this time.

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 CNG stations will help facilitate the introduction of low emission, natural gas fueled vehicles (NGVs) initially in private and public fleets in the area. Such increased penetration of NGVs will provide direct emissions reductions of NOx, VOC, CO, PM, and toxic compounds throughout the Basin.

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:

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.

In addition to publication in the above-cited publications, over 100 individual RFP notices were mailed to businesses and individuals.

Proposals received were evaluated by a diverse, technically qualified panel in accordance with criteria contained in the attached RFP. The RFP panel was composed of four scoring members and a chairperson, whose job was to facilitate the scoring process. Two of the scoring members are employed outside of the AQMD. All panelists were male; one Caucasian, one Asian American, one Hispanic and one Asian Indian.

CEC, Transportation & Fuels Office, Automotive Engineer
CARB, Chief, On-Road Section
AQMD, Planning & Rules Manager; Modeling, Meteorology & Mobile Source Strategies
AQMD, Planning & Rules Manager; Science and Technology Advancement.

Fifty-four proposals were received, totaling $13.5 million in requests. As limited funding was available, only those proposals that identified new or strategically located existing natural gas fueling facilities were considered for funding. Strategic locations are those sites that best provide a basic natural gas fueling infrastructure for existing and near term fleet expansion. Additionally, not all applicants received the total amount of funding requested, as permitted in the RFP. In those cases, applicants were most probably going to receive funding from other incentive programs such as the Carl Moyer or California Energy Commission’s programs. Existing stations requesting funds only for upgraded equipment (dispensers and card) were not considered at this time due to funding limitations.

Some proposals receiving a higher score than others did not necessarily receive the requested level of funding. Stations that would provide the overall greatest value to the AQMD did receive requested funding. In accordance with approved AQMD RFP guidelines, the least cost proposal was awarded the most points in the cost category. All other proposals received a percentage of that highest score, with proposals costing over twice the lowest score getting zero points. Since this was not a solicitation for Research and Development projects, a proposal did not have to receive a minimum score in order to receive funding.

Funding, in an amount not to exceed $4,600,000 is available from the AES Settlement Fund.

Attachment

Evaluation of Proposals RFP #P2001-35 Recommended for Awards
Proposals Received - Category I, $100,000 or Less
Proposals Received - Category II, Between $100,001 and $500,000
Proposals Received - Category III, Above $500,001
Maps of existing alternative fuel infrastructure stations (LNG, CNG) + new AES awards

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