BOARD MEETING DATE: October 3, 2003 AGENDA NO. 8

The AQMP identifies the use of alternative clean fuels in mobile sources as a key attainment strategy. Alternative fuel vehicles, such as natural gas vehicles (NGVs), have demonstrated significantly lower VOC, NOx, CO and toxic emissions than gasoline or diesel fueled vehicles. The 1190 Rules require implementation of alternative fuel heavy-duty vehicles in public and selected private fleets in the Basin. The new Rules require government fleets and selected private fleets (with more than fifteen vehicles) to purchase low-emission or alternative fuel vehicles when adding or replacing vehicles to their fleet. These Rules, and other important Clean Fuel Programs, have set the stage for widespread penetration of clean fuel, low emission technologies. Furthermore, these projects will provide applicants and other alternative fuel vehicle participants experience and knowledge of alternative fuel and hydrogen compatible storage and dispensing systems. While the RFP does not require components to be currently hydrogen compatible, it provides for additional points for considering such hydrogen compatibility issues. In any event, staff believes that natural gas fueling stations are inherently hydrogen-compatible because the fuel may be used to generate hydrogen.

Those fleets that are impacted by Rules 1193, 1194, 1195 and 1196 would benefit from additional fueling infrastructure with public access.

The proposed RFP will provide cost-share funds to assist fuel vendors, public and private fleets to establish alternative fuel dispensing facility projects for public access in the four county areas. The total amount of the RFP will be $1,500,000, using Clean Fuel Funds. This funding is designed to offset a portion of the initial capital investment required for new or upgraded stations, resulting in conveniently located, publicly accessible fueling stations with competitively priced alternative fuels. In addition, such stations will help implement and increase widespread penetration 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 with alternative fuel storage and dispensing systems.

Applicants can be any project owner/developer that will own and operate the intended natural gas fueling stations and may include public agencies or private entities. Applicants may also include fleet owners, state and local governments, as well as automobile manufacturers, alternative fuel suppliers, storage and equipment component manufacturers whose intention is to own and operate the intended natural gas fueling station. Projects that are strategically located or will assist fleet owners or public agencies subject to the Fleet Rules to establish alternative fuel dispensing facilities in California are eligible. Projects that partner with school districts or fleet owners subject to the Fleet Rules will be given a priority. Grant funds can only be requested for costs associated with the physical fueling facility including, but not limited to, storage, dispensing, and/or electronic point-of-sale (EPOS) equipment at designated fueling facilities. Funding for EPOS equipment shall have universal capability (i.e., it must accept Voyager, Visa, MasterCard and other proprietary cards where applicable) where cross fueling is not an issue and where the general public may fuel where it is practical. For this RFP, funding will only be provided for natural gas fueling stations.

The level of required cost share is based upon the amount of grant funds requested (See table below). The cost share shall be based upon cash expenditures, (i.e. land/lease, equipment, engineering, permits, installation, etc.). In-kind services shall not exceed 10 percent.

Project Throughput (SCFM)	% AQMD Cost Share	Maximum AQMD Cost Share
Less or equal to 100	50 percent of project cost	$75,000
Between 100 and 250	40 percent of project cost	$150,000
At 250 and above	30 percent of project cost	$250,000

The general requirements of the RFP are identified below:

1)	Proposed project must be located within the jurisdictional boundaries of the South Coast Air Quality Management District.
2)	Proposed project shall be a "fast-fill" station with public access.
3)	Project schedule shall be limited to a two-year timeframe.
4)	Proposed project may request cost-share funds for capital investment costs only.
5)	Applicant will be contractually obligated to proposed station throughput.

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 all cities and area residents. Such new construction will provide a coordinated effort, plan for growth of the overall infrastructure, and help reduce costs associated with duplication of effort. There are economies of scale captured as a result of the many infrastructure being planned and installed, possibly reducing the cost of infrastructure and making alternative refueling stations more affordable. While having no direct impact on air emission reductions, new natural gas fueling stations will help facilitate the introduction of low emission, natural gas fueled vehicles (NGVs) initially in private and public fleets in the area. Such increased penetration of NGVs will provide direct emissions reductions of NOx, VOC, CO, PM, and toxic air contaminants throughout the Basin.

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

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.

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

Funding for the RFP, in the amount of $1,500,000 will come from the Clean Fuel Funds.