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Gardena approves Clean Energy contracts to operate CNG station and supply renewable natural gas to GTrans
Summary
Gardena authorized a multi‑year operations contract for its new CNG fueling station and a separate contract for renewable natural gas supply and credit management. Staff said contracts are budgeted in GTrans' operating budget and aim to support fleet sustainability and warranty needs.
The Gardena City Council on Aug. 20 authorized two contracts with Clean Energy to support GTrans operations: one for operations and maintenance of a newly completed compressed natural gas (CNG) fueling station, and a second for renewable natural gas (RNG) commodity supply and credit management.
City staff said the CNG station allows GTrans to fuel and maintain 39 CNG buses on‑site and that specialized maintenance is required to preserve warranties and ensure continuous service. The operations and maintenance contract (item 18A) is a 1‑year base with four 1‑year options; staff presented a base monthly fixed fee of $12,917 and listed a 5‑year base total of $775,020 with a 10% contingency noted in the staff report. Funding for the first year is included in the GTrans FY25‑26 operating budget, and staff said exercising subsequent option years would be considered in future budgets.
On item 18B, staff proposed Clean Energy provide RNG commodity supplies delivered through the SoCalGas pipeline and handle RIN and Low Carbon Fuel Standard (LCFS) credit management and sales on GTrans’ behalf. Staff explained RNG is produced from organic waste streams (landfills, dairies, wastewater) and said using RNG can generate tradable RIN and LCFS credits; Clean Energy’s proposal includes a revenue‑share arrangement (transcript lists example splits subject to market conditions).
Councilmember Francis asked how the contracts fit with the city’s long‑term fleet strategy. Director Crespo said the council previously approved an 80/20 plan (80% CNG, 20% electric) and that the fleet currently aligns with that plan; staff said electric vehicles remain a longer‑term goal but are not yet available at the scale required for all heavy vehicles. The council approved both contracts on unanimous roll call votes.
What happens next: GTrans will work with Clean Energy to implement the operations and maintenance program and to coordinate RNG deliveries and credit management. Staff said RNG credit revenue is market‑dependent and will be handled under contract terms; option years and any contract amendments will come back to council for future budget consideration.
