OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
OCTOBER 15, 2020
Subject
SUBJECT: BIOMETHANE PROVIDERS
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. AWARD three (3) Indefinite Delivery/Indefinite Quantity Contracts under Request for Proposal (RFP) No. OP59812 each for five (5) years, plus a three (3)-year option, for a combined total Not-To-Exceed amount of $66,893,882 for Renewable Natural Gas (RNG) to Clean Energy Renewables, Shell Corporation, and Trillium for Metro's Divisions 8, 9, 10,13,15 and 18. Board approval of contract awards is subject to resolution of any properly submitted protest(s) and
B. AWARD Individual Transaction Confirmations (also known as Task Orders) to the qualified Renewable Natural Gas (RNG) suppliers for up to a not-to-exceed of $5,000,000 each, not greater than the total combined Not-To-Exceed value of $66,893,882.
Issue
ISSUE
Metro's long-term strategy to support California's ambitious air quality and greenhouse gas (GHG) goals is to procure and deploy a 100% Zero Emission Buses (ZEB) bus fleet by 2030. To ensure that our agency continues to achieve its greenhouse gas emissions and criteria air pollutant goals during this transition from compressed natural gas (CNG) fleet to ZEB fleet, we are using biomethane to power Ultra-Low Nitrogen Oxide (NOx) "Near Zero" CNG engines. Biomethane is also known as renewable natural gas.
The current biomethane contract was awarded in 2017 and will expire in 2022. The number of biomethane supply sources have increased and continued to diversify in the last three years. Low Carbon Fuel Standard (LCFS) rules have also evolved during that time. A new contract is necessary to ensure that our agency could access more diverse biomethane supplies and optimize the number of environmental credits we get from the use of biomethane, while continually minimizing the cost of our natural gas use.
Discussion
DISCUSSION
Biomethane...
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