BOARD MEETING DATE: May 1, 2009
AGENDA NO. 3A

PROPOSAL:

Execute Contract for Lease of Buses in Support of Mountain Area CNG School Bus Demonstration Program

SYNOPSIS:

As an element of its FY 2006-07 Work Program, the MSRC funded the demonstration of CNG school buses at Bear Valley Unified School District. This project includes the lease of two CNG school buses and the lease of a portable CNG refueling station. A new refueling station vendor was retained for the project and approved by the MSRC at its December 2008 meeting. Due to the change in acquiring the temporary refueling infrastructure, the buses were not demonstrated for the intended length of time. This action is to execute a contract with BusWest, Inc. to provide partial funding for an additional one-year demonstration of two CNG school buses at an AQMD cost not to exceed $80,000 from the Clean Fuels Fund.

COMMITTEE:

Technology, April 17, 2009, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with BusWest, Inc. to provide partial funding for an additional one-year lease of two CNG school buses to Bear Valley Unified School District in an amount not to exceed $80,000 from the Clean Fuels Fund.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

As an element of the FY 2006-07 Work Program, the MSRC funded the demonstration of two CNG school buses at one or more mountain area school districts. The Bear Valley Unified School District elected to participate. This demonstration project was comprised of two elements: a) the lease of two natural gas buses from BusWest, Inc.; and b) the lease of a portable CNG refueling station. Bear Valley Unified accepted delivery of the leased CNG school buses in September 2008.

The portable CNG refueling station was installed and commenced refueling operations around October 2008. Subsequent to station startup, Bear Valley Unified experienced multiple technical issues associated with the station installation, including CNG leaks that were attributed to loose connections on station fittings and components. Although station repairs, reinstallations, and other corrective actions were taken on at least three occasions, perceived safety issues resulted in Bear Valley Unified School District’s unilateral decision to discontinue station operation until such time as all operational issues were corrected. The MSRC decided to contract with a new vendor for the temporary refueling. In December 2008, the MSRC approved a contract with GESI to install a new temporary refueling station. Due to the change in the refueling station operations, the buses have not accrued sufficient demonstration time, especially during the winter months when the school bus performance is most critical.

To continue the Mountain Area CNG School Bus Demonstration Program, the MSRC approved at its March 19, 2009 meeting: 1) installation of a new temporary alternative fueling station; 2) hiring of a new contractor for installation and maintenance of the new refueling station; and 3) extension of Bus West’s contract for lease of two natural gas school buses for an additional year. At the time, MSRC also requested AQMD support to ensure a successful demonstration with the Bear Valley Unified School District.
 

Proposal

The total project cost, including the new temporary refueling station and the extended lease of the two CNG school buses, is $161,928. This proposal is to provide $80,000 co-funding to offset the majority of the lease cost for the two CNG school buses through the 2009-10 school year in order to demonstrate the viability of natural gas school buses at altitude and in cold climates. The MSRC will fund the remainder of the total project costs.
 

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) Project involving cost-sharing by multiple sponsors.

This overall program is cosponsored by the MSRC, where AQMD’s contribution will be approximately half of the total project cost. Additional project funding will be supplied by the MSRC from AB 2766 discretionary funds.
 

Benefits to AQMD

The AQMP relies upon accelerated implementation of advanced technologies within Southern California to achieve federal and state ambient air quality standards and to obtain further reductions in air toxic exposure. Continuation of the CNG school bus demonstration program has the potential, if successful, to result in future replacement of diesel school buses with natural gas buses. Since students riding diesel school buses are exposed to diesel particulate - a cancer-causing compound - this proposal has the potential to reduce student exposure to carcinogens. Additionally, NOx levels from natural gas school buses are six times lower than that for current diesel school buses.

Finally, this project is included in the 2009 Technology Advancement Office Plan Update under the category of "Infrastructure and Deployment."
 

Resource Impacts

Total cost to continue the Mountain Area CNG School Bus Demonstration Program is approximately $161,928. AQMD’s contribution from the Clean Fuels Fund shall not exceed $80,000. The total estimated cost-share for this proposed project is $81,928 from the MSRC.

Sufficient funds are available in the Clean Fuels Fund, which is established as special revenue 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, establishes 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.