South Coast Air Quality Management District

Execute Contract to Provide Supplemental Funding for Construction of Natural Gas Fueling Station and Reallocate Grant Funds for Jurupa Unified School District

SYNOPSIS:

The Board, at its May 11, 2001 meeting, allocated one-time revenue realized from the AES settlement to Jurupa Unified School District (JUSD). The proposed funding was utilized to replace 34 type 1 diesel buses with CNG buses and nine type 2 diesel buses with gasoline buses. The funding for the infrastructure to fuel and maintain these buses requires additional support as well as the reallocation of unused funds from the original AES One-Time Settlement Fund Grant.

COMMITTEE:

Administrative, October 12, 2001, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute a contract with JUSD to provide supplemental funding for a CNG fueling station, in an amount not to exceed $109,826 from the Clean Fuels Fund.
   
   
2. Reallocate funds remaining from the $3,000,000 AES One-Time Settlement Fund Grant after the purchase of 34 type 1 CNG school buses and nine type 2 gasoline school buses to allow it to be used in funding the CNG infrastructure for JUSD in an amount not to exceed $155,420.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On March 16, 2001, the Board voted to allocate $3 million of the AES settlement to be used by JUSD to help fund the replacement of 34 type 1 diesel school buses with CNG buses and nine type 2 diesel buses with gasoline buses. Supplemental funding was planned to fund the required infrastructure to support these buses and to provide fleet fueling access for other governmental agencies. The implementation of this program will reduce the exposure of school children to harmful diesel exhaust.

The AQMP has identified the use of alternative clean fuels in mobile sources as a key attainment strategy. With the recent adoption of Rule 1195 and other 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.

Proposal

JUSD requests that the AQMD provide supplemental financial support for the completion of the CNG fueling station and maintenance facility upgrade. In addition, they request Board approval to reallocate the funds remaining from the AES One-Time Settlement Fund Grant of $3,000,000 after the purchase of 34 type 1 CNG school buses and nine type 2 gasoline school buses. These supplemental funds and savings from the grant will allow the completion of the fueling infrastructure along with some necessary enhancements as well as the upgrading of the maintenance facilities to enhance support for the CNG bus fleet.

The specific reasons for the additional funds requested by JUSD are:

• Infrastructure bids received were considerably higher (at least $139,000) than anticipated
• Changes to the original equipment specified in the bid to accommodate the bus fueling design and public access resulted in additional costs ($36,890).
• The enhancement of the fast-fill island for other fleet vehicles requires the installation of in-site storage tanks (approximately $75,000).
• Originally JUSD planned to finance part of the infrastructure costs with a grant from the Carl Moyer Program, but they did not have sufficient throughput to qualify for this grant.
• JUSD also planned to finance the maintenance facility upgrades with a grant from the California Energy Commission Infrastructure Fund. This grant was not approved as this fund is only used to fund new projects, not upgrades.

This supplemental funding will allow JUSD to complete their CNG fueling station and maintenance facility upgrades thereby supporting their CNG school bus fleet and providing CNG fueling for other governmental agency fleets as well.

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 previously approved project has removed 43 diesel school buses and replaced them with cleaner fuel buses. The proposed project will provide a commercial access fueling location in the Riverside area that will enhance the conversion of local fleets to CNG by providing a convenient, local fueling site.

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.

JUSD will provide $500,000 to help fund this project. JUSD has also applied for funding by the MSRC and will apply for additional funding next year. Co-funding will be provided by the Natural Gas Fueling Infrastructure AES Settlement Fund, the Clean Fuels Fund, the California Low Emission School Bus Program and the AES One-Time Settlement Fund.

Resource Impacts

Adequate funding for the proposed $109,826 grant is contained in the Clean Fuels Fund and is consistent with the FY 2001-02 Work Program.

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