PROPOSAL:
Execute Contracts for Natural Gas Fueling Station Infrastructure at
School Districts and Joint Power Authorities
SYNOPSIS:
On September 8, 2006, the Board approved release of an RFP to solicit
proposals for funding up to 75 percent of the capital investment costs of
fueling infrastructure and garage or maintenance facility upgrades at
public school districts and joint power authorities. Total amount of
funding available is $2,000,000 as approved by the Board with its
September 2006 release of the RFP. Eight proposals were received by the
closing date. One of the eight proposals was deemed unresponsive by the
proposal evaluation panel. As the solicitation was oversubscribed, this
action is to request an additional $526,553 from the Clean Fuels Fund to
be used to award funding to seven school districts in the amount of
$2,526,553.
COMMITTEE:
Technology, January 26, 2007, Recommended for Approval
RECOMMENDED ACTIONS:
- Transfer the sum of $491,237, as approved by the Governing Board when
the RFP was released on September 8, 2006, to the Clean Fuels Fund.
($1,508,763, the balance of the $2 million originally authorized for the
RFP, is from the Clean Fuels Fund).
- Authorize the Chairman to execute contracts with the following
entities in an amount not to exceed $2,526,553 from the Clean Fuels Funds:
- A contract with Pupil Transportation Cooperative, in an amount not
to exceed $187,154, to upgrade an existing, full public access CNG
fueling station.
- A contract with Coachella Valley Unified School District, in an
amount not to exceed $124,550, to offset the costs of purchasing and
installing a new CNG fueling station.
- A contract with the Capistrano Unified School District, in an amount
not to exceed $696,869, to offset the costs of purchasing and installing
a new, full public access CNG fueling station.
- A contract with Redlands Unified School District, in an amount not
to exceed $525,000, to offset the costs of purchasing and installing a
new CNG fueling station.
- A contract with Los Angeles Unified School District, in an amount
not to exceed $617,480, to offset the costs of purchasing and installing
a new CNG fueling station.
- A contract with Beaumont Unified School District, in an amount not
to exceed $288,000, to offset the costs of purchasing and installing a
new public access CNG fueling station.
- A contract with Menifee Unified School District, in an amount not to
exceed $87,500, to offset the costs of purchasing and installing a new
fueling station.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
At its September 2006 meeting, the Board authorized release of RFP
#P2007-07 soliciting cost-shared proposals from school districts and joint
power authorities for installing natural gas fueling and maintenance
facilities. Funds generated under AB 923 for the AQMD’s Lower-Emission
School Bus Replacement Program have been made available in the past for
funding of up to 10 percent of bus purchase awards for CNG fueling
infrastructure. However, the cost of CNG fueling infrastructure and
necessary garage upgrades can be quite burdensome for school districts. The
identified economic burden may severely limit the use and expansion of clean
fuel CNG buses by local school districts, increasing the risk and exposure
of children to toxic diesel particulate matter and smog-forming pollutants.
Expansion of the natural gas fueling infrastructure is needed to support
school bus fleet fueling needs and support future incentive program awards
such as the Chairman’s School Bus Replacement Initiative and the Carl Moyer
Program.
The Board approved a total of $2 million to support the RFP. Funding is
designed to offset capital investment costs of fueling infrastructure and
garage or maintenance facility upgrades. For this RFP, funding was only
provided for natural gas fueling infrastructure. Applications were accepted
from school districts and joint power authorities providing transportation
for students and school districts. Additional scoring consideration was
given to those applicants that provide public access.
Funding of natural gas fueling infrastructure was offered to school
districts totaling up to 75% of the cost of the new or upgraded equipment
and/or system. The level of cost share was scored based upon the amount of
grant funds requested including cash expenditures by the applicant, (i.e.
equipment, engineering, permits, installation, etc.) less all available fuel
savings, manufacturer, equipment and fuel tax credits, and other
infrastructure award moneys through AB 923 (Low Emission School Bus
Program). In-kind services were limited to 10 percent with the exception of
actual installation by school district staff. Staff has met with all the
school bus vendors and discussed the issue of potential tax credits allowed
under the Energy Bill.
The general requirements of the RFP are identified below:
- Proposed project must be located within the jurisdictional
boundaries of the South Coast Air Quality Management District.
- Proposed project shall be a natural gas station time-fill or
fast-fill fueling station. Additional points will be granted to those
applicants proposing stations with public access.
- Project schedule shall be limited to an eighteen-month time
frame.
- Applicants must submit approved five (5) year bus replacement /
bus purchase schedule along with operating/maintenance costs, utility costs,
other funding sources, average annual miles driven and diesel gallons used
for each bus in present fleet.
- Proposed project may request cost-share funds for natural gas
infrastructure and associated garage/maintenance facility upgrades.
All awardees are to be contractually obligated to the proposed station’s
throughput.
Proposal
As mentioned above, eight proposals were received by the RFP deadline of
October 27, 2006. All proposals received in response to RFP #2007-07 were
evaluated and scored by a diverse, technically qualified panel in accordance
with criteria contained in the RFP. The evaluation panel’s technical scores
for each proposal are provided in Attachment A. One of the eight proposals
was deemed unresponsive.
APPLICANT |
FUNDING PROPOSED |
Pupil Transportation Cooperative |
$ 187,154 |
Capistrano USD |
$ 696,869 |
Coachella Valley USD |
$ 124,550 |
Redlands USD |
$ 525,000 |
Los Angeles USD |
$ 617,480 |
Beaumont USD |
$ 288,000 |
Menifee Union School District |
$ 87,500 |
TOTAL |
$ 2,526,553 |
In addition to any funding provided by the AQMD, school districts have
available a number of mechanisms that allow up to 100% of the project
funding. These other mechanisms include the following:
- Fuel savings - Diesel fuel without tax is currently about
$2.80/gallon. CNG fuel cost based on a diesel equivalent gallon (DEG) from
a station owned by the user is about $1.40/DEG. This is a $1.40/DEG saving.
- Federal Energy Bill for buses - Bill allows manufacturer
tax credits up to 50% of the differential cost between diesel and CNG buses.
- Federal Energy Bill for fueling station - Bill allows the CNG station installer/manufacturer up to $30,000 tax credit for a CNG
station.
- Highway Bill (H.R. 3), Sec. 11113 - Volumetric Excise Tax
Credit for Alternative Fuels. Provides an excise tax credit (referred to as VEETC) to the seller (or user if there is no seller) of CNG or LNG. The
credit is 50 cents per gasoline-gallon-equivalent for CNG.
- AQMD infrastructure component award that accompanies CNG
buses.
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. School buses operate in close proximity to students, teachers
and neighbors. Many schools provide bus services in heavily populated
areas. The successful implementation of the school bus replacement program
will provide less polluting and safer school transportation for school
children. In addition, the program will maximize the potential emission
benefits in low income, high diesel and high PM10 exposure areas, and will
enhance the objectives of the Environmental Justice and Children’s Health
Initiatives adopted by the Board.
Outreach
In accordance with AQMD’s Procurement Policy and Procedure, a public
notice advertising the RFP/RFQ and inviting bids was published in the Los
Angeles Times, the Orange County Register, the San Bernardino Sun, and
Riverside County Press Enterprise newspapers to leverage the most
cost-effective method of outreach to the entire South Coast Basin.
Additionally, potential bidders may have been notified utilizing AQMD’s
own electronic listing of certified minority vendors. Notice of the RFP/RFQ
have been mailed to the Black and Latino Legislative Caucuses and various
minority chambers of commerce and business associations, the State of
California Contracts Register website, and placed on the Internet at AQMD’s
Web site (http://www.aqmd.gov/).
Information was also available on AQMD’s bidder’s 24-hour telephone message
line (909) 396-2724.
Bid Evaluation
Proposals received were evaluated by a diverse, technically qualified
panel in accordance with criteria contained in the RFP. The evaluation
panel consisted of a representative from CARB, an independent technical
expert, a representative from the California Energy Commission and an AQMD
Program Supervisor. The panel make-up was four Caucasian; two female and
two male. Attachment A provides a summary of the proposals received ranked
by the scores received from the evaluation panel
Resource Impacts
Total funding for the project will be made available from the Clean Fuels
Fund in an amount not to exceed $2,526,553.
The Clean Fuels Fund was established as a special revenue fund resulting
from the state-mandated Clean Fuels program. The Clean Fuels Program, under
Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section
9250.11, established mechanisms to collect revenues from mobile sources to
support projects to increase the utilization of clean fuels, including the
development of the necessary advanced enabling technologies. Funds
collected from motor vehicles are restricted, by statute, to be used for
projects and program activities related to mobile sources that support the
objectives of the Clean Fuels Program.
Attachment
(DOC 43.5 kb)
A – Evaluation of Technically Qualified Proposals Submitted Under RFP
#P2007-07
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