South Coast Air Quality Management District

Execute Contract to Provide Supplemental Funding for Construction of Liquefied Natural Gas Fueling Station and Approve Grant for CNG Fueling Infrastructure at a Public School District

SYNOPSIS:

Two projects are being proposed. The first would provide a LNG fueling station adjacent to Agua Mansa Road municipal solid waste transfer station for the LNG waste collection vehicles operated by Burrtec Corp., under contract to Riverside County. This project is being funded, in part, through a grant from the AES Settlement Fund for Infrastructure. This request is to supplement the earlier $148,350 AES grant with funds from the Rule 1309.1 Fund in the amount of $165,000. The second project allocates $11,877 from the Lower-Emission School Bus Program Fund to Torrance Unified School District for CNG infrastructure.

COMMITTEE:

Technology, September 28, 2001, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute a contract with Riverside County Waste Management to provide supplemental funding for an LNG fueling station, in an amount not to exceed $165,000 from the Rule 1309.1 Fund.
   
   
2. Authorize the Chairman to approve a grant to Torrance Unified School District for CNG infrastructure under the Lower-Emission School Bus Replacement and Retrofit Program for FY 2000-01, in an amount not to exceed $11,877 from the Lower-Emission School Bus Replacement and Retrofit Program Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Air quality and health impacts of diesel exhaust have led to reduction in diesel exhaust emissions from heavy-duty vehicles. With the recent adoption of the Clean Fleet Vehicle rules that require the purchase of cleaner burning gasoline or alternative-fueled vehicles, there is a need to develop and expand the existing alternative fuel refueling infrastructure. As fleet operators continue to purchase rule-compliant alternative-fueled vehicles (in particular, natural gas) in the near future, public access refueling stations must be constructed. Rule 1193 - Clean On-Road Residential and Commercial Waste Collection Vehicles, envisions that public access refueling stations will be built at transfer stations and landfills.

The number of vehicles operating on CNG fuel in public and private fleets has been increasing in recent years. In addition to waste collection vehicles, school buses are also targeted for clean fuel use. It is therefore important to expand fueling infrastructure, capable of providing cost-effective and reliable fueling to CNG fleet.

Proposal

Riverside County Waste Management
The Riverside County Waste Management Department has proposed to build a Liquefied Natural Gas (LNG) fueling station at its Agua Mansa Road waste transfer facility. Located in the Agua Mansa Industrial Enterprise Zone, this fueling station will initially support 25 heavy-duty LNG trash collection and transport trucks. It is estimated that these 25 trucks will utilize up to 500,000 gallons of LNG annually. In addition, since the site will be available for limited public access, it will expand the LNG fueling infrastructure for the Clean Transportation Corridor Project. This site is significant due to its proximity to Interstates 215 and 10 and California Freeways 60 and 91 and the large amount of heavy-duty truck traffic carried by these freeways. It is possible that with the conversion of other heavy-duty vehicles in the area to LNG, the annual throughput of this facility could increase from 1.5 to 2.0 million gallons.

Some of the features of the proposed refueling station are:

• Transfer station location is centrally located and at the end points for waste transfer and waste pick-up trucks
• One 15,000 gallon LNG storage tank
• Provision for an additional 15,000 gallon LNG storage tank as facility use and demand increases
• Station designed and constructed to accommodate the addition of liquefied-to-compressed natural gas (L/CNG) production, storage and dispensing at a later time
• Elimination of the need for waste collection vehicles to rely on mobile fueling units, the currently available fueling option.

In July 2001, the AQMD Board approved $148,350 to cofund this project through the AES Infrastructure Settlement Fund; however, the amount requested for this project was less than allowed under the guidelines of the AES Infrastructure RFP.

Riverside County Waste Management Department estimates the cost of this project to be $1,188,350 with AQMD contributions of $148,350 from the AES Infrastructure Settlement Fund (previously approved) and an additional $165,000 from the AQMD's Rule 1309.1 Fund. The latter allocation is consistent with the 1309.1 expenditure plan approved at the Board’s September 21, 2001 meeting.

Riverside County Waste Management Department
Agua Mansa Road LNG Fueling Station Costs

Torrance Unified School District
In a separate action, the Board, at its June 15, 2001 meeting, awarded 102 CNG and 67 lower-emitting diesel replacement school buses to 27 public school districts and one joint power authority under the Lower-Emission School Bus Replacement and Retrofit Program. Schools receiving CNG buses were also entitled to request additional funding for CNG infrastructure, amounting up to ten percent of their awards for the replacement buses. Torrance Unified School District was awarded one CNG school bus, but did not request funding for CNG infrastructure at the time. Since then, they found that an additional compressor would allow them to operate their CNG fleet more efficiently and is requesting funding assistance. It is therefore recommended to award $11,877 from the Lower-Emission School Bus Program Fund to Torrance Unified School District for the expansion of their CNG infrastructure. The recommended amount is ten percent of the award granted for their CNG bus, and is in compliance with the guidelines of the school bus replacement program.

Benefits to AQMD

AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low emission, alternative fuel technologies within its Technology Advancement Office. The AQMD has also supported a number of activities directed to commercialization of low-emission alternative fuel technologies. The proposed LNG project is included in the Technology Advancement Plan under category 2001 CFM3-1, Development and Demonstration of Advanced Natural Gas System for Refueling Stations. While not providing any direct emission reductions, the proposed station enhancements will assist in the commercialization of natural gas heavy-duty vehicles by providing another source of fuel. The primary benefits of this project will be to provide an LNG fueling site in an area which has no current LNG refueling availability.

Optimizing natural gas fueling stations, including the Torrance Unified School District project above, will benefit operators of CNG fueled vehicles in the South Coast Air Basin. The optimization will provide more efficient use of the natural gas fueling infrastructure by public and private fleets.

Sole Source Justification

Section VIII.B.2. of the Procurement Policy and Procedure identifies four major provisions under which a sole source 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 Officer require such waiver in the best interest of the AQMD. Specifically, these circumstances are B.2.d.(1): Projects involving cost sharing by multiple sponsors.

This project will be co-funded by the Riverside County Waste Management Department ($104,000), Carl Moyer Program ($200,000), California Energy Commission ($95,000), AB2766 ($35,000), MSRC ($17,500), and Riverside County Transportation Commission ($423,500).

The Riverside County Waste Management Department has agreed to manage this project. They are a governmental agency involved in the removal, transport, disposal and storage of municipal solid and liquid waste and the attendant infrastructure needed to support those activities.

Relative to Torrance Unified School District, the recommended action is consistent with criteria used for the statewide school bus replacement program.

Resource Impacts

Total cost for the proposed LNG project is $1,188,350. Total AQMD cost will not exceed $165,000 (plus $148,350 previously granted under the AES Infrastructure Settlement Fund).

Sufficient funds are available from the Rule 1309.1 Fund, which will create emission credits for specific priority sources. A summary of the project funding is listed below.

Riverside County Waste Management Department
Agua Mansa Road LNG Fueling Station Funding

Funding from the AQMD for CNG infrastructure at Torrance Unified School District shall not exceed $11,877. Sufficient funds are available from the statewide Lower-Emission School Bus Replacement and Retrofit Fund.

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