Metro - File #: 2017-0150

• File #: 2017-0150
• Type: Contract
• Status: Agenda Ready
• File created: 3/3/2017
• In control: System Safety, Security and Operations Committee
• On agenda: 4/20/2017
• Title: AUTHORIZE the Chief Executive Officer to: A. AWARD five (5) year, Indefinite Delivery/Indefinite Quantity Contract No. OP7396000 for a Biomethane Gas Provider to Clean Energy Renewables, the lowest responsive and responsible bidder for a not-to-exceed amount of $1,240,520 for the base year (for one bus division as a pilot) and a not-to-exceed amount of $54,808,110 for a four (4) year option, for a total contract amount of $56,048,630 (for all bus divisions if the pilot is successful), subject to resolution of protest(s), if any; and B. EXECUTE individual Task Orders (Transaction Confirmations) and changes within the Board approved contract amount.
• Sponsors: Construction Committee
• Indexes: Air quality, Bids, Budgeting, Bus Maintenance Projects, Cleaning, Commodities, Contracts, Fuels, Key Performance Indicator, Maintenance practices, Metro Divisions, Natural gas, Operations Maintenance (Project), Plan, Procurement, Purchasing, Renewable Natural Gas, Rolling stock, Transportation Development Act of 1971, Zero Emission Bus (ZEB) Master Plan, Zero Emissions

Date	Action By	Action	Result
5/25/2017	Board of Directors - Regular Board Meeting

Meeting_Body
REVISED
REGULAR BOARD MEETING
MAY 25, 2017

Subject/Action
SUBJECT: BIOMETHANE PROVIDER

ACTION: AWARD BIOMETHANE SUPPLIER CONTRACT

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to:

A. AWARD five (5) year, Indefinite Delivery/Indefinite Quantity Contract No. OP7396000 for a Biomethane Gas Provider to Clean Energy Renewables, the lowest responsive and responsible bidder for a not-to-exceed amount of $1,240,520 for the base year (for one bus division as a pilot) and a not-to-exceed amount of $54,808,110 for a four (4) year option, for a total contract amount of $56,048,630 (for all bus divisions if the pilot is successful), subject to resolution of protest(s), if any; and

B. EXECUTE individual Task Orders (Transaction Confirmations) and changes within the Board approved contract amount.

Issue
ISSUE

Metro became the largest compressed natural gas bus fleet in the nation after retiring its last diesel bus in 2011. However, the transit industry is already looking ahead to new technologies and cleaner fuel sources that offer improved efficiency and environmental benefits. Metro's long-term plan to achieve California's ambitious air quality and greenhouse gas (GHG) goals is to explore and procure for Zero Emission Buses (ZEBs). The recent ZEB procurement and testing continue to be used by our agency to gain first-hand experience through the rapidly growing space of electric vehicle and battery technology. While this occurs, our agency's immediate term strategy includes the use of Low Nitrous Nitrogen Oxides (NOx) "Near Zero" CNG engines and procuring for renewable natural gas (i.e., biomethane). Based on our modeling efforts, this short-term strategy yields significant regional air quality benefits and greenhouse gas emissions reductions in a timely and cost-effective manner.

Discussion
DISCUSSION

Biomethane is natural gas derived from landfills, dairies, and wastewater treatment plants rather than being extracted o...