South Coast Air Quality Management District

Execute Contracts to Upgrade and Expand Existing Liquefied Natural Gas Fueling Infrastructure at Orange County Transportation Authority

SYNOPSIS:

In order to upgrade and expand the existing LNG fueling infrastructure at Orange County Transportation Authority (OCTA), staff proposes to cost-share with OCTA to add an additional LNG fueling station at its Anaheim or Garden Grove locations. The total cost of the proposed addition is estimated to range from $1.4 million – 1.8 million. This additional fueling capacity is needed to address the current and future needs of OCTA’s fleet of LNG transit buses. Staff proposes that partial funds reverted back to the AQMD from its AES, Rule 1309.1, and Clean Fuel Program projects be utilized to fund this project. Total AQMD funds available under this cost-share agreement shall not exceed $1,000,000.

COMMITTEE:

Technology, September 27, 2002, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Orange County Transportation Authority to cost-share additional LNG fueling capacity at its Anaheim or Garden Grove facility in an amount not to exceed $1,000,000 from the AES Settlement Fund, the 1309.1 Priority Reserve and Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

OCTA operates 232 LNG-fueled, 40-foot, low-floor transit buses manufactured by North American Bus Industries (NABI). OCTA also operates two LNG refueling stations located in Anaheim and Garden Grove. Each has two 25,000-gallon LNG storage tanks buried underground, a unique design that has resulted in some operating problems. Specifically, the reciprocating pumps and other associated equipment which supply LNG to two dispensers have not proven dependable.

SCAQMD’s consultant, USA PRO, has been instrumental in working with OCTA in resolving many of the performance issues associated with this new technology. Recent efforts have led to the development of temporary station operating plans and future options for replacing the current system with reliable conventional technology.

Proposal

In recognition that the existing LNG fueling infrastructure at its two LNG fueling sites are inadequate to meet current as well as future LNG bus fueling demands, OCTA has developed a preliminary option for retrofitting and/or expanding the stations with equipment utilizing more conventional and proven design approaches for fuel storage, pumping, conditioning, and controls. Qualified cryogenic system design and equipment firms have met with OCTA to review the requirements, and provide preliminary recommendations (including approximate costs and schedules). The range of costs for adding one additional 30,000-gallon LNG fueling system as part of OCTA’s operation came in at between $1.4 million - $1.8 million. The additional fueling capacity will provide for the current and future needs of OCTA.

In the past several years, the Board has recognized the need for additional fueling infra-structure, and has awarded funding for several alternative fueling infrastructure projects through the Clean Fuel Funds, the AES Settlement Fund, and from the Rule 1309.1 Prior-ity Reserve Funds. While these actions have resulted in the establishment of over 30 new fueling stations and the upgrade of an additional 27 stations, a few of the proposed projects that were awarded funding cannot be completed due to the inability of the proposed contractor to successfully finalize siting for these projects. As a result, the AQMD will not proceed with contract execution on Contract #03105 and is in the process of either fully or partially terminating the remainder of these contracts. Appearing below is a table outlining those projects where either partial or the entire funding awards can be re-allocated. Contracts will be amended to de-obligate funds, where appropriate.
 

In addition to the above, at its September 2001 meeting, the Board allocated $500,000 from the AQMD Technology Advancement Clean Fuels Fund (Fund 31) to assist fleet operators in offsetting the additional costs associated with LNG refueling of vehicles (wet hosing) while an LNG refueling station is being constructed. Staff is proposing that $44,000 of the $500,000 be re-allocated by the Board to offset the costs of additional LNG fueling infrastructure at OCTA.

Staff is recommending that funding from these various incomplete projects be re-authorized to cost share additional LNG fueling infrastructure for OCTA for a total AQMD contribution of $1,000,000.

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 local and downwind cities and area residents

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 provisions B.2.c.(3) OCTA has ownership of key assets required for project performance and 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) The project involves significant cost sharing by OCTA. It is in the best interest of the AQMD to cosponsor the proposed project, as it furthers protection of the public health through expansion of a clean fuel refueling facility and allows for an increased number of clean fuel busses.

Resource Impacts

Total funding for this project is estimated to be between $1.4 million to $1.8 million. The total amount of AQMD funding for this project shall not exceed $1,000,000, with funds in the amount of $314,000 from the Clean Fuels Fund, $506,000, from the AES Settlement Fund, and $180,000 from the Rule 1309.1 Priority Reserve Fund.

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