REPORT TO THE CITY COUNCIL
FROM: GREGORY A. BARFIELD, M.A., Director
Department of Transportation
BY: JOANA GARCIA, Management Analyst II
Department of Transportation
SUBJECT
Title
Award a two-year Revenue Service Contract, with options for three one-year extensions to STX Commodities at no cost to the City (Bid File 12502230)
Body
RECOMMENDATION
Staff recommends that Council award a two-year Revenue Service Contract with options for three one-year extensions to STX Commodities at no cost to the City (Bid File 12502230).
EXECUTIVE SUMMARY
The Department of Transportation / Fresno Area Express (FAX) owns, operates, and maintains a Compressed Natural Gas (CNG) fueling facility. Delivery of uncompressed natural gas is currently being provided on-demand through PG&E's service lines to FAX's CNG station. The CNG station fuels FAX's bus fleet of over 138 buses, most of which are CNG-powered. It also provides CNG fuel to other City departments and external customers. On average, FAX's CNG fueling station dispenses 3.5 million therms annually into motor vehicles, contributing to the City's efforts in promoting sustainable transportation.
California's transition towards lower-carbon transportation fuels and technologies has provided economic incentives through the generation and trading of Low Carbon Fuel Standard (LCFS) credits. This has created a need for specialized expertise to navigate the rapidly evolving greenhouse gas market. As a CNG supplier, FAX generates LCFS credits by maintaining a Carbon Intensity (CI) that is lower than the established annual benchmark of California's LCFS program. These credits generated are then sold to entities that have a CI deficiency within the LCFS program. Additionally, FAX also earns and sells Renewable Identification Number (RIN) credits through the nationwide Renewable Fuel Standard (RFS) program.
The proposed Service Contract is for two years with options for three one-year extensions and includes tw...
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