South Coast Air Quality Management District

Issue RFP for Development of LNG Refueling Stations in the South Coast Air Basin

SYNOPSIS:

At its September Meeting, the Board allocated $2,000,000 from Rule 1309.1 - Priority Reserve for Funding Assistance for LNG Refueling Stations to co-fund the development of LNG refueling stations in the SCAB. The RFP solicits cost-shared proposals for new LNG - L/CNG stations to be constructed within the SCAB. Project funding will range up to 50% of the project costs.

COMMITTEE:

Administrative, October 12, 2001, Recommended for Approval

RECOMMENDED ACTION:

Approve issuance of RFP #P2002-19 in an amount not to exceed $2,000,000, to solicit proposals for construction of multiple LNG - L/CNG fueling stations with public access in the four county area using funds from the Rule 1309.1 - Priority Reserve for Funding Assistance for LNG Refueling Stations.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMP identifies the use of alternative clean fuel use in mobile sources as a key attainment strategy. The AQMD clean fleet vehicle rules also require implementation of alternative fuel heavy-duty vehicles in public and certain private fleets in the Basin. These new rules have set the stage for widespread use of clean fuel and low emission technologies.

In particular, those fleets that are impacted by Rule 1193 will benefit from additional fueling infrastructure, with public access, in place as soon as possible to effect a smooth transition to an alternative fuel fleet. 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.

At the August 17, 2001 and September 21, 2001 Governing Board meetings, staff provided a status report on the implementation of Rule 1193 - Clean On-Road Residential and Commercial Waste Collection Vehicles. Staff indicated that waste collection operators would be purchasing either LNG or compressed natural gas (CNG) waste collection vehicles to meet the requirements of Rule 1193. Many waste collection operators preferred to purchase LNG fueled vehicles to minimize the space needed for the fuel tanks and maximize collection load capacity. Staff provided a more detailed report on LNG refueling infrastructure and the expected demand for LNG in the future relative to implementation of the clean fleet vehicle rules.

At its September Meeting, the Board allocated $2,000,000 from Rule 1309.1 - Priority Reserve for Funding Assistance for LNG Refueling Stations to co-fund the development of LNG refueling stations in the SCAB. This RFP solicits cost-shared proposals for new LNG - L/CNG stations to be constructed within the SCAB.

Proposal

The proposed RFP will provide cost-share funds to assist public and private fleets to establish LNG - L/CNG fuel dispensing facility projects for public access in the four county areas. The total amount of the RFP will be up to $2,000,000 using funds from the 1309.1 Priority Reserve. This funding is designed to offset capital investment costs, resulting in conveniently located, publicly accessible fueling stations. In addition, the stations will help implement and increase widespread use of low emission, alternative fuel, and heavy-duty vehicles in public, commercial and private fleets. Furthermore, these projects will provide applicants and other alternative fuel vehicle participants experience and knowledge of LNG - L/CNG storage and dispensing systems.

Staff believes that LNG refueling stations would be constructed primarily at transfer stations and landfills to refuel waste hauling vehicles subject to Rule 1193. The construction of refueling stations at transfer stations and landfills will reduce the need for smaller fleets to build their own refueling stations. However, larger waste hauling fleets have been or are in the process of building their own refueling stations.

Applicants must be either public agencies or private entities with emphasis on those entities that must comply with Rule 1193. Grant funds can be requested for up to 50% of the project cost for new LNG - L/CNG projects. For this RFP, funding will only be provided for LNG - L/CNG fueling stations. Those stations with the largest committed LNG - L/CNG volumes and number of vehicles will receive the highest number of points under the criteria appearing in the RFP. Emphasis will be placed on the location of the new fueling stations. The proposed RFP is attached.

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 the region. Such new construction will provide for growth in clean fuel infrastructure. There are also economies of scale captured as a result of the infrastructure being planned under the RFP that should reduce costs of rule compliance. 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 vehicles (NGVs) which do reduce emissions and will support the implementation of Rule 1193.

Outreach

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

1.	Angeles Mesa Wave, The	11.	Inland Valley Daily Bulletin	21.	Palm Springs Desert Sun
2.	Antelope Valley Press	12.	Korea Central Daily	22.	Philippine News
3.	Black Voice News	13.	La Opinion	23.	Precinct Reporter
4.	Central News Wave	14	La Prensa Hispana	24.	Rafu Shimpo
5.	Chinese Daily News	15.	La Voz	25.	Press Enterprise
6.	Eastern Group Publications	16.	Los Angeles Daily News	26.	San Bernardino Sun
7.	El Chicano	17.	Los Angeles Sentinel	27.	Santa Clarita Signal
8	El Informador	18.	Los Angeles Times	28.	The Wave
9.	Excelsior, The	19.	M/W/DVBE Source	29.	State of California Contracts
10.	Inland Empire Hispanic News	20.	Orange County Register		Register

Additionally, potential bidders will be 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 will be 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.

Bid Evaluation

Proposals received will be evaluated by a diverse, technically qualified panel in accordance with criteria contained in the attached RFP.

Resource Impacts

Funding for the RFP, in the amount of $2,000,000 will come from the Rule 1309.1 - Priority Reserve designated for Funding Assistance for LNG Refueling Stations.

Attachment

RFP #P2001-19 - RFP for Liquefied Natural Gas Fueling Station Infrastructure with Funds Received from Priority Reserve.

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