Metro - File #: 2018-0368

• File #: 2018-0368
• Type: Contract
• Status: Agenda Ready
• File created: 6/5/2018
• In control: Operations, Safety, and Customer Experience Committee
• On agenda: 7/19/2018
• Title: AUTHORIZE the Chief Executive Officer to: A. RECEIVE AND FILE the results of the one year pilot for the use of biomethane fuel at Bus Division 5; B. EXPAND the use of biomethane fuel from Division 5 to all Metro Bus Divisions; C. EXERCISE Contract Modification No. 3 to Indefinite Delivery/Indefinite Quantity Contract No. OP7396000 with Clean Energy Renewables to exercise a single four- year Option in the amount of $54,808,110 to provide Biomethane Gas for all Metro Bus Divisions, increasing the total contract value from $1,240,520 to $56,048,630, and extending the term of the contract from August 1, 2018 to July 31, 2022; and D. EXECUTE individual Task Orders (Transaction Confirmations) and changes within the Board approved contract amount.
• Sponsors: System Safety, Security and Operations Committee
• Indexes: Board approved Contract, Budgeting, Bus Maintenance Projects, Carbon Footprint, Cleaning, Commodities, Contracts, Division 05, Fuels, Maintenance practices, Metro Divisions, Natural gas, Operations Maintenance (Project), Procurement, Purchasing, Renewable Natural Gas, Rolling stock, Safety, Transportation Development Act of 1971, Volume, Zero Emission Bus (ZEB) Master Plan, Zero Emissions
• Related files: 2018-0502

Meeting_Body
OPERATIONS, SAFETY AND CUSTOMER EXPERIENCE COMMITTEE
JULY 19, 2018

Subject
SUBJECT: BIOMETHANE/RENEWABLE NATURAL GAS

Action
ACTION: APPROVE RECOMMENDATIONS

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to:

A. RECEIVE AND FILE the results of the one year pilot for the use of biomethane fuel at Bus Division 5;

B. EXPAND the use of biomethane fuel from Division 5 to all Metro Bus Divisions;

C. EXERCISE Contract Modification No. 3 to Indefinite Delivery/Indefinite Quantity Contract No. OP7396000 with Clean Energy Renewables to exercise a single four- year Option in the amount of $54,808,110 to provide Biomethane Gas for all Metro Bus Divisions, increasing the total contract value from $1,240,520 to $56,048,630, and extending the term of the contract from August 1, 2018 to July 31, 2022; and

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

Issue
ISSUE

In July 2017, the Board approved award of Indefinite Delivery/Indefinite Quantity Contract No. OP7396000 with Clean Energy Renewables for a period of five (5) years, inclusive of one four-year Option starting August 1, 2018. The one-year base period allowed for a pilot at Division 5 located at 5425 S Van Ness Avenue in Los Angeles. Compared to fossil natural gas, the contracted biomethane (or renewable natural gas (RNG)) delivered during the pilot period has 43% fewer lifecycle greenhouse gas emissions. Information on the biomethane pilot has been previously presented to the Metro Sustainability Council.

Given the success of the pilot, expansion of the use of biomethane to all of Metro's Bus Divisions requires a contract modification to exercise the four-year option extending the term of the contract through July 31, 2022. Board approval will allow Metro to foster healthier communities through the utilization of the lowest-carbon fuel commercially available for Metro's existing bus fleet while simu...