Renewalable Natural Gas Revenue

The Salem Area Mass Transit District (SAMTD) in Marion County, Oregon, is seeking qualified firms or producers of Renewable Natural Gas (RNG) through Request for Proposal (RFP) 24-022 to provide revenue shares of RNG production based on the district's consumption. The procurement is specifically for RNG used to fuel SAMTD's fleet of 34 heavy-duty fixed-route coaches and 7 light-to-medium duty paratransit cutaway vehicles. Proposers must provide a revenue share structure, with the evaluation criteria weighted 70% toward revenue per therm and 30% toward qualifications and relevant experience. The procurement schedule includes a pre-proposal conference on July 10, 2024, with questions due by July 17, 2024, and proposals due by July 31, 2024. The contract is set to commence on September 1, 2024, with an initial term of 5 years (through June 30, 2029). Proposers must demonstrate technical capability to supply RNG and comply with federal transit administration (FTA) contract clauses, including various federal regulatory requirements.

The RFP includes an overall Disadvantaged Business Enterprise (DBE) goal of 2.49% and encourages DBE participation, though there are no strict set-aside requirements for small or disadvantaged businesses. The current RNG supplier is US Gain, a division of US Venture Inc., with an existing contract price of $0.40 per therm of CNG dispensed, a floor price of $0.20, and 100% share of Brown Gas CFP Credits. The contract allows proposers to offer pricing through fixed per-therm rates, floor pricing with credit revenue shares, or a combination of pricing options. Insurance requirements have been modified, with automobile liability insurance removed from the original solicitation. While specific award value is not explicitly stated, the contract will be awarded to the proposal offering the highest revenue share to SAMTD, with the expectation of providing RNG for the district's entire fleet operations over the five-year contract period.