City Committee Will Consider Authorizing the Use of Renewable Natural Gas in City’s Fueling Program

The Pasadena City Council’s Municipal Services Committee will likely formally endorse a recommendation by the Department of Public Works to start using renewable natural gas (RNG) in the city’s fleet fueling program in an effort to eventually transition from using fossil compressed natural gas (CNG).

Transitioning to RNG will enable the city to comply with Assembly Bill 32, the Global Warming Solutions Act of 2006, and to qualify to participate in the state’s Low Carbon Fuel Standard (LCFS) Program.

In particular, the Public Works Department is recommending that the city manager be authorized to enter into a contract with Clean Energy Fuels Corp. for the supply of environmentally friendly RNG for Pasadena’s fleet of about 53 vehicles that currently use fossil CNG. These include Pasadena Transit buses, sanitation trucks, dump trucks, sweepers, aerial trucks, and sewer trucks.

Clean Energy will also manage the city’s Natural Gas Fuel Revenue Credit over a period of three years, with the option of two additional one-year extensions, at the discretion of the city manager.

RNG is a substantially lower-carbon fuel compared to CNG and is a cleaner-burning fuel. While CNG is mined from oil deposits under the ground, RNG is derived from capturing biogenic methane produced by the decomposing organic waste from dairy plants, landfills, and wastewater treatment plants.

RNG is believed to reduce climate-harming greenhouse gas emissions from at least 70% to up to 300%, depending on the source of the fuel.

By using RNG, Pasadena can potentially earn environmental commodity revenue. Under the federal Renewable Fuel Standard (RFS) Program, RNG is eligible to receive Renewable Identification Numbers (RINs), which is a mechanism to value the production of federally qualifying biofuels.

The Public Works Department explained that the city will benefit from Clean Energy receiving credits from the RFS Program because it could eventually lead to Pasadena receiving RNG fuel at no cost and without any financial obligations to the vendor.

“Clean Energy will provide the city with 100% of the equivalent value of the fossil CNG LCFS credits plus an additional incremental share of credit based upon the usage quantity in our SoCal Gas monthly billing,” the department said in a report for the City Council.

“Delivery of the RNG in equivalent volume to the CNG dispensed at the city’s CNG station will be expected on a monthly basis. Additionally, Clean Energy will also perform the associated CARB (California Air Resources Board) and EPA natural gas fuel reporting and tracking, including managing the RNG credits generated and selling these to the obligated parties.”

The report added Clean Energy has been in business for over 20 years and has existing RNG contracts with other Southern California cities.

The special meeting of the Municipal Services Committee on Tuesday begins at 4 p.m. Members of the public can access the meeting through http://pasadena.granicus.com/MediaPlayer.php?publish_id=9 as well as through www.pasadenamedia.org.

Public comments may be sent by email to vflores@cityofpasadena.net or through  www.cityofpasadena.net/commissions/public-comment.