Meeting_Body
REGULAR BOARD MEETING
MAY 28, 2026
Subject
SUBJECT: RENEWABLE NATURAL GAS (RNG) PROVIDER
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. AWARD a five (5) year Indefinite Delivery/Indefinite Quantity (IDIQ) contract, Contract No. OP132076000, with Shell Energy North America (US), LP for Renewable Natural Gas (RNG), inclusive of a five-year base in the Not-To-Exceed (NTE) amount of $140,004,228.05 and one three-year option in the NTE amount of $88,902,684.81, for a combined NTE amount of $228,906,912.86; and
B. EXECUTE individual Task Orders, Transaction Confirmations, and Contract Modifications up to 10% of the contract value.
Issue
ISSUE
Metro uses Renewable Natural Gas (RNG) fuel to power the engines on the majority of the bus fleet. RNG fuel is currently being procured under four contracts due to previously limited RNG availability from one single supplier.
RNG remains a critical bridge fuel during Metro's transition to a fully Zero-Emission Bus (ZEB) fleet. As charging infrastructure is constructed and new electric buses are phased into service, RNG ensures uninterrupted transit operations while maintaining progress toward greenhouse gas and criteria pollutant reduction goals. Maintaining a reliable RNG supply during this transition period protects operational continuity, safeguards service reliability, and provides flexibility as Metro refines future fleet and energy demand projections.
Background
BACKGROUND
Metro's energy choices have far-reaching implications for climate, air quality, community health, and the stability of our transportation network. Recognizing this, Metro has made long-term commitments to energy efficiency, renewable energy adoption, greenhouse gas reductions, climate adaptation, and systemwide energy resilience. These commitments have been in place since 2007 and are reaffirmed through the Board-approved 2019 Climate Action and Adaptation Pla...
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