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BOARD MEETING DATE: November 9, 2001 AGENDA NO. 7




PROPOSAL: 

Approve Transfer of Funds and Execute Contract to Purchase Analyzer to Determine Pipeline Natural Gas Composition

SYNOPSIS: 

With the recent expansion of the natural gas refueling infrastructure and the greater use of natural gas vehicles as part of the implementation of the AQMD fleet vehicle rules, there is a need to maintain a high quality of natural gas fuel delivered. To assist in the analysis of the chemical compounds including methane found in natural gas distribution pipelines, staff recommends the purchase and installation of an on-line natural gas analyzer to determine the specific composition of the natural gas found in the distribution pipeline. This action is to authorize the Chairman to execute a contract with Daniel Measurement and Control Incorporated to purchase and install a Natural Gas Analyzer in an amount not to exceed $45,000 from the Clean Fuels Fund.

COMMITTEE: 

Technology, October 26, 2001. Reviewed by consent. Since less than a quorum was present during this meeting; the Chair and Vice Chair communicated their concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

RECOMMENDED ACTION:

  1. Transfer $45,000 from the Clean Fuels Fund to the General Fund and appropriate to the FY 2001-02 Budget in Science and Technology Advancement, Fixed Asset Major Object, for the purchase of a Natural Gas Analyzer.

  2. Authorize the Chairman to execute a contract with Daniel Measurement and Control Incorporated to purchase and install a Natural Gas Analyzer in an amount not to exceed $45,000.

Barry R. Wallerstein, D.Env.
Executive Officer


Background

With the recent adoption of the Clean Fleet Vehicle rules, there will be greater usage of alternative fuels such as natural gas and propane. Natural gas vehicles rely on a high quality of natural gas to operate at maximum efficiency. In general, natural gas delivered through distribution pipelines into Southern California meets the state fuel specification requirements. However, methane content (expressed as the methane number or MN) can vary significantly by source. However, Southern California Gas has committed to meet a minimum MN of 80, and to monitor the gas stream at various blending points within their system.

Proposal

In order to analyze the chemical composition on the natural gas distribution pipeline, staff has evaluated several online natural gas analyzers. This analyzer will provide independent validation of gas quality closer to a point of use which could include gas blended from local gas sources as well as sources from outside the South Coast Air Basin. The analyzer will provide detailed composition of natural gas up to four times an hour, and relay the data to the AQMD for analysis and MN calculation. Furthermore, Southern California Gas utilizes equipment from one of the natural gas analyzer vendors. Therefore, staff is recommending the purchase and installation of the natural gas analyzer from Daniel Measurement and Control Incorporated at a cost not to exceed $45,000.

Sole Source Justification

Section VIII B.2 of the Procurement Policy and Procedure identifies four major provisions under which a sole source purchase 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 Office require such waiver in the best interest of the AQMD. Specifically, those circumstances are B.2.d.(6) Projects requiring compatibility with existing specialized equipment.

The analyzer that staff proposes to purchase is supplied by the same manufacturer used by the Southern California Gas Company. Utilizing similar equipment will allow easier installation by the Gas Company. Likewise, should it be necessary, Southern California Gas Company staff would be able to appropriately handle the instrument in case of emergency. Aside from these compatibility issues, the cost of the analyzer was compared to two others and found to meet AQMD needs at the lowest cost.

Resource Impacts

The total cost for the purchase and installation of the natural gas analyzer is approximately $45,000. 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 objective of the Clean Fuels Program.

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