BOARD MEETING DATE: March 7, 2003
AGENDA NO. 38

Amend Prior Staff Recommendation and Award Carl Moyer Memorial Air Quality Standards Attainment Program Funding to Foothill Transit for a CNG Public Access Station

SYNOPSIS:

At its July 2001 Meeting, the Board authorized a contract with Albertsons to cost-share the installation of an LNG fueling facility, in an amount not to exceed $188,710 from the CEC portion of the Carl Moyer Program Funds. Albertsons is unable to commit to their proposed project before the term of the funding expires. Staff recommends using these returned funds for an application received for the FY 2000-01 Carl Moyer Program solicitation to fund a CNG station with 24-hour a day public access at Foothill Transit.

COMMITTEE:

Technology, February 28, 2003, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Foothill Transit for the installation of a CNG public access fueling facility, in an amount not to exceed $188,710, from the CEC portion of the Carl Moyer Program Funds

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In July 2001, the Board awarded five projects for alternative fuel infrastructure, funded from the CEC portion of the Carl Moyer Program funds, as shown in Table 1. Under the Carl Moyer guidelines the AQMD entered into a contract with the CEC for reimbursement of funds advanced to the awardees from the AQMD. The liquidation term in that contract, the period in which all CEC grant-funded tasks must be completed and funds requested, expires on March 30, 2003, after which any unused funds revert back to the State of California’s General Fund. Of the five projects, three have been completed (two Omnitrans projects and Foothill Transit project) and the Sysco Foods projects will be completed shortly. However, the Albertsons project cannot be completed before March 30, 2003. Staff is recommending that the funds allocated for the Albertsons project be used to assist in the construction of a public access CNG station at Foothill Transit’s facility located in Pomona.

Proposal

Albertsons was awarded $188,710 for cost-sharing an LNG refueling station for its trucks. Albertsons is unable to fulfill their commitment to construct the LNG refueling station before the AQMD’s contract with the CEC expires. Staff believes it is prudent to use those un-spent funds and award the monies to Foothill Transit for completion of their public access CNG station prior to the contract expiration of March 30, 2003. Foothill Transit received $200,000 in Carl Moyer funding to help offset the $1.5 million their new CNG bus fueling facility cost. However, their public access station was not completed due to a funding shortfall. The station will be open 24 hours per day, seven days a week, and be maintained by Foothill Transit to provide a consistent source of CNG to the public. Staff is recommending that the project be funded at a cost to the AQMD of $188,710. This project qualifies for a sole-source justification under the AQMD’s procurement policy, section VIII(B)(2)(d), such procedure is in the best interests of AQMD, for the reason that funds will otherwise revert back to the State of California if not encumbered for air quality improvement projects by March 30, 2003.

Benefits to AQMD

The AQMP relies on the expedited implementation of advanced technologies and clean–burning fuels in Southern California in an effort to achieve ambient air quality standards. The continued expansion of the CNG refueling infrastructure in the South Coast Air Basin is necessary as more alternative fueled vehicles are deployed. In addition to the existing infrastructure network, these new projects are strategically located to help establish an infrastructure "backbone" that will allow for fueling of natural gas vehicles throughout the Basin.

Resource Impacts

Total cost for the proposed project is $188,710. All funding for this project is from the Carl Moyer Program Fund, established as a special revenue fund resulting from the statewide Carl Moyer Memorial Air Quality Standards Attainment Program administered by ARB. The objective of the Carl Moyer Program is to accelerate the introduction of low-emission heavy-duty engines. Funds for infrastructure projects were distributed by the CEC through local air districts. Funds from this program are restricted to be used as incentives to private companies or public agencies to cover an incremental portion of the cost of infrastructure projects.

Attachment

Table 1. FY 2000-01 Carl Moyer Program Proposed Awards for Fueling Infrastructure

TABLE 1

FY 2000-01 Carl Moyer Program
Proposed Awards for Fueling Infrastructure

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