METRO CNG Program Phase I Update. Customer Service Committee April 2014

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1 METRO CNG Program Phase I Update Customer Service Committee April 2014

2 METRO CNG Program Background Bus purchase Short term solutions Long term plans Bus purchase options 2

3 METRO CNG Program April 2011 METRO staff began review of technology of choice April 2012 Presentation of findings to the Board in April Key Observations LCC (Life Cycle Cost) for a CNG fleet scenario is lower than diesel or hybrid diesel vehicles. Return to Board with 5 year fleet plan recommendations. July 2012 Presentation of METRO fleet plans Use of CNG in a stepped fashion February 2013 METRO tasked TTI as part of a standing Inter Local Agreement, to assist METRO with RFP/RFQ development of the CNG infrastructure piece of the project. June 2013 / September 2013 Board updates on progress. 3

4 METRO CNG Program Basic Philosophy Design and implement project as follows: Do not burden internal capital resources Fit program into existing 100 bus fleet replacement plan CNG fueling design and maintenance is not a core business function of METRO. Use HGAC funding as available (in process) 4

5 METRO CNG Program Phase 1 Finance, design, build, operate and maintain two compressed natural gas (CNG/L-CNG) bus refueling stations; 15-year term Annual review of bus quantity and fuel consumption Fuel cost based on national Diesel Gallon Equivalent (DGE) pricing (Henry Hub pricing) Surcharge applied at DGE Coordinate the supply of natural gas and/or delivery of liquefied natural gas (L-CNG) Upgrade Fallbrook and Northwest BOFs to safely accommodate CNG as a fleet fuel. 180 CNG buses in FY 2015 & FY

6 METRO CNG Project Elements RFP for interim fueling RFQ for Facility Modifications and Fueling Infrastructure RFP for Facility Modifications and Fueling Infrastructure Design. Build, Maintain, Operate & Finance Decision on CNG bus counts 6

7 METRO CNG Program Bus Purchase Received approval by Board in August 2013 to move Transit bus purchase forward. Mix of diesel and CNG as infrastructure work is completed FY Clean Diesel FY Clean Diesel / 80 CNG Buses CNG buses to start arriving Spring 2015 FY CNG Buses 7

8 METRO CNG Program Need for Interim Fueling New approach Two step RFQ/RFP will add time Experience of others long time to get City of Houston permitting New procurement process being followed. Allows us to bring buses in while we apply due diligence to fueling and facility modifications Buses maintained outside under awning Use public fueling locations in close proximity to BOF or terminus point of a frequent transit route 8

9 METRO CNG Program RFP for Interim Fueling RFP needed to address one of the largest cost considerations which is the proximity of fueling to the BOF. Fallbrook: New fueling facility underway within ¼ mile of the BOF that could accommodate up to 50 buses. At Northwest we have not been able to identify a fueling station provider to the BOF Reviewing routes to see if any fueling facility close to the terminus location of a route. Would maintain buses under cover, designation area outside of the facility Bus wash area is not an issue 9

10 METRO CNG Program: Bus Purchase Options In August of 2013, the board approved staff moving forward with the purchase of transit buses from North America Bus Industries (NABI). Fueling infrastructure and required facility modifications will not be in place for the spring of As of now 80 CNG buses will arrive within that time frame requiring third party fueling and buses to be maintained outside OPTIONS: Change first 80 CNG buses back to diesel to buy one year s worth of time Change all but 10 buses back to diesel Change 30 buses to diesel with 50 CNG buses to be used at Fallbrook due to proximity of public fueling Leave order as is 11

11 METRO CNG Program: Next Steps Work with NABI on various options to better match construction schedule with delivery of CNG buses. Develop RFP for interim fueling Finalize RFQ/RFP for fueling & facility modifications Meet with Insurance provider on RFQ/RFP Meet with Fire Marshall on all plans 12

12 METRO CNG Program Milestones Release RFP for Interim Fueling May 2014 Procurement process RFP for interim fueling June/July 2014 Release RFQ for fueling and facility modifications June 2014 Complete RFQ process Sept 2014 Release RFP for fueling and facility modifications Sept 2014 Complete procurement process Fueling and Facility Modifications November

13 METRO CNG Program Milestones (Cont d) Design and permitting January 2015 Construction start February 2015 Bus deliveries March 2015 Construction completed June

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