Compressed Natural Gas (CNG) Infrastructure Program. Request for Proposals (RFP)

Transcription

1 Compressed Natural Gas (CNG) Infrastructure Program Request for Proposals (RFP) March 01, 2012

2 1. INTRODUCTION 1.1. Company Profile AGL Resources Inc. (Company) is an Atlanta-based energy services holding company with operations in natural gas distribution, retail operations, wholesale services, midstream operations and cargo shipping. As the nation s largest natural gas-only distributer based on customer count, the Company serves approximately 4.5 million utility customers through its regulated distribution subsidiaries in seven states. The Company also serves more than one million retail customers through its SouthStar Energy Services joint venture and Nicor National, which market natural gas and related home services. Other non-utility businesses include asset management for natural gas wholesale customers through Sequent Energy Management, ownership and operation of natural gas storage facilities, and ownership of Tropical Shipping, one of the largest containerized cargo carriers serving the Bahamas and Caribbean region. The Company is a member of the S&P 500 Index. For more information, visit The Company s subsidiary, Atlanta Gas Light (AGL), is a natural gas utility which provides distribution service to over 1.5 million customers in Georgia. AGL is currently seeking qualified parties interested in submitting proposals to participate in the program described below BACKGROUND The AGL Compressed Natural Gas (CNG) Infrastructure Program (Program) is intended to stimulate development of CNG vehicle fueling stations (CNG Stations or Stations) in Georgia. The Program was approved by order of the Georgia Public Service Commission (GPSC or Commission) on November 29, 2011 and is available to eligible AGL customers anywhere on AGL s distribution system. The Commission order, Program Summary document, examples of the rate calculations, and other useful information can be found on AGL s Program website: The Program will consist of two phases: 1. Phase I AGL will use up to $11.57 million from the Universal Service Fund (USF) to provide the compressor(s), storage, controls, and similar equipment (CNG Equipment) for CNG Stations developed under the Program. Funding of CNG Equipment under Phase I of the Program will be available for five years, or until the USF appropriated funds are depleted, whichever comes first. 2. Phase II Proceeds from commercial activities at the Phase I Stations will be used to fund three additional activities described below. Under this Program, AGL will not sell CNG directly to retail customers and will not provide land for the CNG Stations. Instead, AGL will install, own, and maintain CNG Equipment for project developers, such as fueling services companies, fleet operators, city/county governments, other private enterprise, or any combination of the above (Project Applicants or Applicants). The Project Applicants will be required to provide the land, make any necessary site improvements, install and maintain the CNG dispenser(s) and card reader(s), and perform the CNG Retailer function. A Project 2 AGL CNG Infrastructure Program Request for Proposals

3 Applicant may perform the CNG Retailer function itself or may contract with a third party to perform this function with AGL s consent. In each case, the entity performing the CNG Retailer function is referred to herein as the CNG Retailer. For the purposes of this Program, the customer-owned dispenser(s) and card reader(s), when combined with the AGL-owned CNG Equipment, shall collectively be referred to as the CNG Fueling Infrastructure. Although the Program is generally predicated on all the Stations being publicly accessible (Public Access Stations), up to twenty-five percent (25%) of the appropriated USF funds will be set aside during the RFP process to establish CNG Stations that may allow only limited or no access to the general public (Limited Access Stations). Limited Access Stations will be evaluated separately during the application process and any funds remaining from this up-to-25 percent set-aside will be available on a first come, first served basis to any qualified Project Applicant. The USF funds appropriated by the Commission for the Program will reimburse AGL for the installed cost of the CNG Equipment and all resulting income tax liability from these payments, as state law requires such payments from the USF to be treated as Contribution in Aid of Construction (CIAC) payments. Installation of any necessary gas mains, service lines, and metering equipment to provide gas delivery service to the CNG Station will be handled in accordance with AGL s Rule 8 Non-residential Extension Policy and by a separate standard Nonresidential Extension Agreement. AGL will bill CNG Retailers for distribution and compression services (CNG Services) provided at the CNG Stations under the new CNG-1 rate. The CNG-1 rate schedule includes the same delivery charges as AGL s V-52 rate, but replaces the V-52 facilities charge with an O&M charge and Equipment Usage Fee (EUF). The O&M charge will allow the Company to recover actual costs incurred from providing CNG Services, such as preventive maintenance and repairs, and will be tracked and billed separately for each CNG Station. The EUF will be calculated based on a percentage of the installed cost of AGL s CNG Equipment, and adjusted on a monthly basis, depending on utilization of the CNG Equipment at each CNG Station. The revenue from the EUF will be collected by AGL and held in a Reserve Account maintained by AGL to fund the Phase II activities. The following three Phase II activities are an integral part of the overall Program and will be funded from the proceeds of the EUF paid to AGL by CNG Retailers: 1) Eventual replacement of Phase I CNG Equipment 2) Lease buy-down for Home Refueling Appliance (HRA) program 3) Development of additional Stations under Phase II 2. MIMIMUM QUALIFYING CRITERIA AND CONTRACTUAL REQUIREMENTS 2.1. In each Project Applicant s proposal, the Project Applicant must identify the CNG Retailer and the owner of real property on which the CNG Station will be located (Property Owner), which may or may not be the same entity and which may or may not be the Project 3 AGL CNG Infrastructure Program Request for Proposals

4 Applicant. Project Applicant, CNG Retailer and Property Owner must meet the minimum qualifying criteria described in this Section Project Applicant must execute a standard Service Agreement (see Attachment E for the form of Service Agreement), pursuant to which the Project Applicant, itself or through a third party acting as CNG Retailer, will agree to perform the CNG Retailer function for an initial term of five (5) years and will also agree, at a minimum, to the following: a) Meet all licensing and other requirements to operate as a CNG Retailer, including all necessary operating permits and the payment of any related fees; b) Purchase natural gas from a certificated marketer including obtaining CNG Services under AGL s CNG-1 Rate; c) Install and maintain CNG dispensers and card readers, as well as all underground piping necessary to connect the CNG Equipment to CNG dispensers; d) Make any other site improvements which may be necessary, as reasonably determined by AGL; e) Perform all activities necessary to process commercial transactions for CNG retail customers using major fleet cards and standard bank credit cards, such as MasterCard and Visa; f) Post a CNG retail price expressed in dollars/cents per Gasoline Gallon Equivalent (GGE) at each Public Access Station; g) Meet the insurance requirements set forth in the Service Agreement; and h) Show that one or more end-users of its Station, e.g. Fleet Operators, has committed to a minimum volume for a five year term which shall be no less than 30,000 GGE/year for the smallest available Public Access Station or 150,000 GGE/year for the smallest available Limited Access Station. Minimum volume commitment must be commensurate with the size of Station elected, based on the schedule of Station sizes and corresponding minimum annual volumes as outlined in Attachment A Project Applicants must own or lease from the Property Owner the land on which AGL will locate the CNG Equipment and the CNG Retailer will locate the rest of the Station, each for a minimum five (5) year term. Project Applicants must provide convenient and unrestricted access to CNG dispensers and card readers to the general public during normal business hours at each Public Access Station. Project Applicants must also provide a safe working environment for Company employees and others while on the property Each Property Owner will execute an Easement (see Attachment F for the form of Easement) or such other real property lease as AGL may determine is necessary or convenient, in AGL s reasonable discretion. The Property Owner must agree, at a minimum, to provide appropriate and timely access to the property where the CNG Equipment is located, to permit AGL employees and other authorized persons to construct, install and maintain the CNG Equipment. 4 AGL CNG Infrastructure Program Request for Proposals

5 3. CNG EQUIPMENT SELECTION 3.1. There is a large range of different capacities, configurations, and costs of CNG fueling infrastructure, including, but not limited to, CNG Equipment. There are two primary types of CNG fueling, fast fill or time fill, though stations may sometimes utilize a combination of the two Most publicly accessible CNG stations are the fast fill configuration, in which the compressor(s) are coupled with a volume of storage to facilitate filling the vehicles in just a few minutes through the use of differential pressure. In fast fill stations, the gas in storage is maintained at about 4,500 psig, so when the fueling hose is connected to the vehicle, the pressures begin to equalize and when the pressure in the vehicle storage cylinder rises to 3,600 psig the dispenser will shut off. The pressure in this type of CNG station storage would drop slightly and the compressor would start up as needed to restore it to 4,500 psig over time. If too many vehicles arrive back to back then it is possible that the pressure in the storage could drop too quickly and need several hours to recover A time fill approach is most efficiently employed if the vehicles to be refueled will be parked overnight at a central location. This involves the compressor(s) delivering gas directly to a fill post at each vehicle and slowly raising the pressure to 3,600 psig over a period of time in all the vehicles simultaneously. There are several benefits to time fill installations including reducing/eliminating the amount of storage and number of metered dispensers required, reducing electrical costs, and reducing the amount of time vehicle operators spend queuing and fueling vehicles. Time fill can also serve to increase the capacity of a station where some vehicles can be fueled overnight and additional vehicles can be refueled during the day AGL has performed preliminary engineering design and developed equipment specifications for the CNG Equipment (see Attachment A) to be installed at each CNG Station to provide fast fill delivery service to CNG Retailers under the CNG-1 rate. The designs are based on the premise of using two or more compressors at each installation so there will always be at least some level of redundancy in the event of a compressor outage. The CNG Equipment approved under this Program is most likely to be the fast fill configuration so that the CNG can be dispensed in about the same amount of time as the normal fueling time for gasoline or diesel. However, the Program does not preclude a time fill CNG Station under certain circumstances as long as the Station also includes at least some fast fill capability for other fleets and/or the general public to utilize. In the case of a time fill Station, the Applicant would select the same size CNG Equipment as if it were selecting a fast fill Station. The Applicant would then be responsible for installing its own time fill posts, piping from the compression equipment, and other required equipment. The Applicant would still need to install at least one metered dispenser for fast fill, but this fast fill dispenser could be installed in a through the fence arrangement whereby customers could drive up and refuel without entering the CNG Station. AGL will work with Applicants during the contracting and detailed design phase of the Project to make any modifications necessary to accommodate the addition of time fill capabilities to the basic Station design selected by the Applicant AGL has developed installed cost estimates (see Attachment A) which will be used as the denominator in calculating the Cost Effectiveness Ratio (CER) in the event AGL needs to score the RFP applications received by Applicants, which will occur if the total requested 5 AGL CNG Infrastructure Program Request for Proposals

6 USF disbursements from all qualified Applicants exceeds the amount of funding appropriated by the USF. These cost estimates can also be used as a guide to estimate the Equipment Usage Fee (EUF) for each CNG Station, but the actual EUF charges that will be billed to the CNG Retailer on an ongoing basis will be based on the final installation costs pursuant to AGL s CNG-1 rate. Applicants should note that the figures set forth on Attachment A are estimates and may vary depending on Station conditions The Station designs set forth on Attachment A have been selected based on five nominal Station capacities (sizes) and ranges of annual volumes in GGE/year. For each nominal Station size, Applicants will have an option to select a 100% redundant design or 50% redundant design, so each Project Applicant may select a Station design that best meets its needs. In most cases, the Station option for 100% redundancy in a particular Station size is the same Station design as the 50% redundant option in the next larger size. Therefore, although there are eight possible alternative scenarios for each Applicant to select, there are only five actual Station designs Example: Two proposed CNG Stations are each anchored by a fleet with an initial annual volume of 30,000 GGE/year and growth capabilities up to 150,000 GGE/year. This qualifies them both for a Station with a nominal delivery capacity of 75 GGE/hour requiring 150 cfm of total compressor capacity. However, one fleet may consist of 20 bi-fuel (CNG/gasoline) pick-up trucks and the other may consist of 10 dedicated CNG shuttle buses. The Applicant fueling bi-fuel trucks might select Option 1, the 50% redundant option with two 75 cfm compressors, because its anchor fleet could refuel with gasoline during occasional outages. On the other hand, the Applicant fueling shuttle buses may select Option 2, the 100% redundant option with two 150 cfm compressors, so its anchor fleet could still fuel at the full 75 GGE/hour rate even if one compressor is out of service AGL reserves the right, in its sole discretion, to modify the size of the CNG Equipment ultimately installed for an approved Applicant if, in the opinion of AGL, the Station capacity selected using the methodology set forth on Attachment A does not serve the public interest. 4. APPLICANT S RESPONSIBILITIES 4.1. The estimated total installed cost of CNG Equipment for each design does not include any costs for the dispenser(s), land, site improvements, installation of utilities, or any other unusual conditions. These other up-front costs are the sole responsibility of the Applicant and could vary from minimal (such as in the case of an existing retail fueling station simply adding a CNG dispenser) to much more significant (such as in the case of a green field project). Please see the Roles and Responsibilities Matrix (Attachment B) for a more complete description of the various responsibilities of AGL and Project Applicants Each Station size listed on Attachment A includes a minimum number of CNG dispensers that must be provided, installed, and maintained by the Project Applicant. This includes the high pressure tubing and other connections from the compressor location to the dispenser(s), protective barriers, and any other installation requirements for the dispenser(s). AGL has provided recommended dispenser specifications (see Attachment C) to assist Applicants with selecting, purchasing, and the installation of the dispenser(s.) Please also note while CNG dispensers are outdoor-rated and a canopy is not required, providing a canopy over the fueling island is a generally accepted practice to ensure the 6 AGL CNG Infrastructure Program Request for Proposals

7 comfort of Station customers. (Inclusion of a canopy should be included in Applicant s description of Station location factors for RFP scoring consideration. See Section 7 of this RFP for additional detail about RFP scoring.) 4.3. Each Station size listed on Attachment A also includes a minimum square footage requirement and minimum shortest dimension for a square or rectangular piece of land which must be provided by Applicant for the CNG Equipment and adequate working space around the CNG Equipment for installation and maintenance. This does not include the space required for the CNG dispenser(s), vehicle access, and other Program requirements. Each Applicant should adhere to all Program requirements, applicable laws, rules and regulations and industry best practices when planning its site layout to provide for ingress/egress to the dispensers, adequate turning radius, and other space needs based on the types of vehicles it anticipates refueling. Although not a requirement, AGL strongly encourages providing for an additional 50% of square footage for installation of a possible future compressor and/or storage to increase the Station capacity at some time in the future. (Providing additional space for expansion should be included in Applicant s description of Station growth factors for RFP scoring consideration. See Section 7 of this RFP for additional detail about RFP scoring.) 4.4. Each Station size listed on Attachment A includes a minimum annual volume to which an Applicant must commit in order to qualify for the Program. The minimum annual volume shall be no less than 30,000 GGE/year for the smallest available Public Access Station or 150,000 GGE/year for the smallest available Limited Access Station. Minimum volume commitment is commensurate with the size of Station elected, and scales based on the schedule of Station sizes and corresponding minimum annual volumes as outlined in Attachment A. Applicants may submit annual volumes in excess of the required minimum. The annual volumes submitted by each Applicant will be used to calculate the numerator of the Cost Effectiveness Ratio (CER) in the event AGL needs to score the RFP applications received by Applicants, which will occur if the total requested USF disbursements from all qualified Applicants exceeds the amount of appropriated funds. Applicants must commit to at least the applicable minimum annual volume set forth in Attachment A for each year of the initial five years of operation of Applicant s CNG Station. In the event the minimum annual volume (or the larger volume committed to by Applicant in its application) is not met, the CNG Retailer will be charged for the deficient volumes at the EUF rate pursuant to a take or pay provision in the Service Agreement AGL has also provided in Attachment A an estimate of annual maintenance and operating costs, which AGL will pass through to the CNG Retailer, however, these are provided solely as a guide. Maintenance and any other operating costs incurred by AGL will be passed through as actual costs over the life of the Project, pursuant to the terms of AGL s CNG-1 rate. Actual operating and installation costs will vary, as AGL will design, construct, and maintain the CNG Equipment based on the information submitted in the Applicant s proposal, site conditions, and other factors Applicant must apply for electrical service for its Station from its local electric utility, establish an electric service account in its name, and be responsible for paying all invoices for electrical service Applicant must comply with all federal, state and local laws, codes, ordinances, rules and regulations with respect to the installation, maintenance, and operation of the CNG Station, CNG dispenser(s) and other equipment for which the Applicant and/or CNG Retail will be 7 AGL CNG Infrastructure Program Request for Proposals

8 responsible, as well as performing the CNG Retailer function. The following list of laws, codes, ordinances, rules and regulations is being provided for illustrative purposes only, and AGL makes no representation or warranty whatsoever regarding the accuracy or completeness of this list: All construction codes and amendments thereto, as adopted by the Georgia Department of Community Affairs (DCA) ( The Rules and Regulations of the Georgia Safety Fire Commissioner ( All local permitting, plans review, and inspection requirements (a local building officials directory and searchable database are located on the DCA website at ials.asp); All local planning and zoning requirements (a local government planning officials directory is located on the DCA website at ds/dirctrylocalgovplngofcls.pdf ); All applicable state and local licensing requirements; The Occupational Safety and Health Act of 1970; The Americans with Disabilities Act; The Immigration Reform and Control Act of 1986; O.C.G.A ; The Civil Rights Act of 1964, as amended, Executive Order and regulations related thereto; All other applicable federal, state, and local laws and regulations. 5. RFP APPLICATION 5.1. Applicant shall submit its proposal on its behalf and on behalf of the CNG Retailer and Property Owner identified in Applicant s proposal, if separate from Applicant. All parties must be identified and provide letters of intent with Applicant s proposal. Should Applicant s proposal be accepted, finalized agreements between Applicant and CNG Retailer and Applicant and Property Owner, as applicable, must be submitted to AGL prior to contract execution by AGL and Applicant All proposals must be submitted electronically via SharePoint All proposals must be submitted using the format set forth in Attachment D to ensure consistency and completeness in the evaluation process. Any deviations from Attachment D shall negatively affect the evaluation of that proposal If the Applicant takes exception to any provision of the RFP, it shall be identified in a List of Exceptions provided with Applicant s proposal. If the Applicant has not identified, in a List of Exceptions, an exception to a provision of the RFP, that provision shall be deemed to have been accepted. In addition to being graded according to the evaluation process outlined in Section 7, AGL will assign preference to proposals that take the least amount of exceptions to the provisions of the RFP and associated Attachments. The more exceptions an Applicant identifies, the smaller the amount of preference AGL will assign. 8 AGL CNG Infrastructure Program Request for Proposals

9 5.5. Applicant must certify Acceptance with all terms and conditions of the Service Agreement and Easement, or Applicant must submit any proposed revisions to the Service Agreement and/or Easement as tracked changes/comments in a Microsoft Word document. Any proposals that do not either provide a redlined copy of the Service Agreement and Easement or certify Acceptance may be rejected by AGL. AGL encourages Applicants to accept the Service Agreement and Easement without exception. Deviations from AGL s standard forms will be accepted only in limited circumstances where it is necessary to address truly unique situations Applicant must submit a letter of intent from the Property Owner that it will contract with the CNG Retailer to lease the land required to operate the selected Station size Applicant must submit letters of intent from fleet operator(s) to contract with the CNG Retailer to purchase at least the minimum annual volume required for Applicant s proposed Station size for the initial five (5) year term (See Section 2.2 (g)). Copies of these fleet agreements will need to be submitted to AGL before AGL will finalize documentation and begin construction for an approved Project Applicant. Applicant may (but is not required to) submit letters of intent from fleet(s) to purchase incremental volumes from the CNG Retailer in excess of the minimum annual volume. AGL will not require successful Applicants to submit copies of contracts for these incremental volumes, but the CNG Retailer will be required to meet any higher volumes to which a successful Project Applicant has committed in its proposal Two or more projects from the same Project Applicant may be combined to be scored as one application in this RFP process. In this scenario, the annual volumes and Station costs would be combined together to calculate one CER score for ranking against other applications. However, each of the Project Applicant s proposed Stations would need to meet the minimum annual volume requirements for the proposed Station site on a standalone basis and the CNG-1 charges for each Station would be billed separately All proposals received shall be considered firm and open for acceptance or rejection for a period of at least ninety (90) calendar days after the Proposal Due Date set forth herein. All proposals must include a statement to that effect Proposals may be withdrawn by written or telegraphic notice received by AGL prior to the exact hour and date of the Proposal Due Date specified herein. A proposal also may be withdrawn in person by an Applicant s authorized representative, provided such authorized representative signs a receipt for the proposal, but only if the withdrawal is made prior to the exact hour and date of the Proposal Due Date specified herein An Applicant may submit an amended proposal before the Proposal Due Date. Any such amended proposal must be a complete replacement of the Applicant s previously submitted proposal and must be clearly identified as such in the transmittal letter. AGL will not merge, collate, or assemble proposal materials. 6. GENERAL INSTRUCTIONS AND SCHEDULE 6.1. All inquiries or questions concerning Project requirements or the content of this RFP should be submitted via the SharePoint website, per instructions that will be delivered to applicants interested in submitting proposals and in accordance with the RFP Schedule set forth 9 AGL CNG Infrastructure Program Request for Proposals

10 below. AGL has no responsibility to respond to questions submitted via any means other than the SharePoint website RFP Schedule RFP Issued: March 1, 2012 Questions & Clarifications: Not later 5:00 PM EST, March 16, 2012 Written Proposal Due Date: April 16, 2012, 12 NOON EST Review Period: April 16 th thru May 15 th 2012 Decision: May 15, During the Review Period, Applicants should make themselves available to present and discuss their qualifications and experience either in person at the AGL offices in Atlanta, Georgia, or via a conference call, at a mutually convenient day and time. AGL reserves the right at its sole and exclusive discretion to conduct negotiations with one or more of the Applicants, or to reject any or all proposals or portions thereof Starting from the Proposal Due Date until AGL has selected successful Project Applicant(s), a blackout period will be enforced. During this time there shall be no communication between AGL and the Applicants related to this RFP, unless initiated by AGL for clarification(s) or presentations related to the Applicant s proposal. Failure to observe this requirement may result in the rejection of Applicant s proposal. 7. APPLICANT EVALUATIONS BY AGL 7.1. Evaluations by AGL of applications shall be based on a complete review and analysis of the information provided by Applicant in its proposal. However, Company reserves the right to consider information gathered from other sources when evaluating proposals Applicant may be disqualified for any of the following reasons: There is reason to believe that collusion exists among the Applicants; The Applicant is in arrears or has defaulted on an existing Company contract or has defaulted on a previous Company contract; The Applicant lacks financial stability; The Applicant has failed to adhere to one or more of the provisions established in this RFP; The Applicant has failed to submit its proposal in the format specified herein; The Applicant has failed to submit its proposal on or before the deadline established herein; or The Applicant has failed to adhere to generally accepted ethical and professional principles during the proposal process Proposals shall be considered as being "irregular" if they show any omissions, alterations of form, additions, or conditions not called for, or irregularities of any kind. AGL reserves the 10 AGL CNG Infrastructure Program Request for Proposals

11 right to waive minor irregularities and mandatory requirements, provided that all responsive proposals failed to meet the same mandatory requirements and the failure to do so does not otherwise materially affect the proposal. This right is at the sole discretion of the Company The application evaluation will be a two-step procedure. First, each application will be reviewed to determine if it meets the minimum eligibility criteria described in this RFP. Once all eligible applications are identified, AGL will calculate the total amount of USF funds proposed to be committed for all eligible applications. If this amount is less than or equal to the amount of appropriated USF funding, then all eligible applications will be approved. If this amount is greater than the amount of appropriated USF funding, then AGL will score the RFP applications in accordance with the procedures in Section 7.5 of this RFP If scoring is required, AGL will score RFP applications using the following formula and component weighting: 90% - Cost Effectiveness Ratio (CER) of Initial Throughput Commitment 5% - Station Location Characteristics 5% - Station Growth Potential Total Score = CER * Location Factor * Growth Factor Applications will first be given a Cost Effectiveness Ratio (CER) score Where: CER = Cost Effectiveness Ratio (GGE/$) = Throughput/USF Payment Throughput Total = Throughput Year 1 *1 +Throughput Year 2 * (1 R) Throughput Year 5 * (1 R) 4 R = Annual Discount Rate = 0.10 Next, the application will be assessed based on the following criteria for location characteristics and growth potential: X = Station Location Characteristics Score, 0 < X < 25 Y = Station Growth Potential Score, 0 < Y < 25 Station Location Characteristics Points Score Strategic fit for area wide coverage and/or 0 5 green corridors Proximity to interstates/major highways for 0 5 ease of access, visibility, etc. Proximity to other CNG Stations (farther 0 5 apart is better) Operating hours for public access 0 5 Security, tenant/cashier available 0 5 Total X 11 AGL CNG Infrastructure Program Request for Proposals

12 Station Growth Potential Points Score Additional fuel usage potential from anchor 0 5 fleet Project Applicant s plans for promoting 0 5 CNG and growing throughput Population density in surrounding area 0 5 Letters of intent from other fleets in the 0 5 surrounding area Proximity to other fleets in the area 0 5 Total Y Next, the total points from the Station Location Characteristics and Station Growth Potential assessments are converted to weighted factors as follows: Station Location Characteristics Factor = X / Station Growth Potential Factor = Y / % < Station Location Characteristics Factor < 100% 95% < Station Growth Potential Factor < 100% The CER, Station Location Characteristics Factor, and Station Growth Potential Factor will be multiplied together to yield the Total Score. RFP applications will then be funded in order of Total Score, with the highest scoring applications funded first, until the total amount of USF funding is depleted During the RFP process, up to twenty-five percent (25%) of the total allocated USF funds is available for Limited Access Stations. Proposals for Limited Access Stations are eligible to be scored against Public Access Station applications as long as the anchor fleet for the Limited Access Station is providing a service for the public benefit, such as a municipal fleet or a private company engaged in waste collection for government entities. If the total amount of funds proposed to be used for eligible Limited Access Station applications exceeds twenty-five percent (25%) of the allocated USF funds, then only the highest scoring Limited Access Station projects will be awarded funding, up to the twenty-five percent (25%) cap. 8. AWARD NOTICE 8.1. Successful Applicants shall be sent a Notice of Selection with AGL s intent of awarding successful Applicants the opportunity to participate in the Program. Participation in the program is contingent upon meeting all post-award obligations, including but not limited to executing a standard Service Agreement and Easement with AGL. Post-award obligations will be discussed in more detail with Applicants that receive Notices of Selection Nothing contained in this RFP or any Applicant s proposal shall become a part of any contract executed by AGL and Applicant, unless specifically incorporated by reference into such executed contract. 12 AGL CNG Infrastructure Program Request for Proposals

13 8.3. If a Project Applicant fails to fulfill its post-award obligations, including but not limited to executing a standard Service Agreement and Easement with AGL, the award will be deemed null and void Approved Project Applicants will have thirty (30) days to address a nullification by AGL before it becomes final. AGL shall consider any response from a Project Applicant, but any final decision to nullify an award shall be made by AGL in its sole discretion If an award is nullified, the designated USF funds that would have been applied to the approved Project Applicant s proposed project will be made available to other approved Project Applicant(s). 9. GENERAL TERMS 9.1. The issuance of this RFP does not obligate AGL to enter into any contract or to undertake any financial obligation related to the requirements in this RFP. Discussions may be conducted with Applicant for the purpose of clarification to assure full understanding of the Applicant s proposal. In conducting discussions, AGL shall not disclose any confidential information derived from proposals submitted by competing Applicants. Until notice of an award is made by AGL, AGL reserves the right to reject any or all proposals and waive technicalities, to re-advertise for new proposals, or to proceed with the Program in any manner as may be considered in the best interest of AGL, consistent with the approved GPSC Program Under no circumstances shall an Applicant or any of its employees, agents or affiliates publicly identify or comment on the contents of this RFP without prior written permission from AGL. Applicants must obtain AGL s written approval prior to making press releases or any announcements related to this RFP or Applicant s proposal in response thereto. AGL reserves the right to refuse all requests for release of this information Should any proposal contain proprietary information, it shall be marked by Applicant accordingly and Company will treat this information as confidential. APPLICANTS SHOULD NOT MARK THE ENTIRE PROPOSAL AS CONFIDENTIAL OR PROPRIETARY It may be necessary in the evaluation process for copies to be made of the proposals and used internally within Company. If this is necessary, copies will only be made available to internal personnel and will be held in confidence. Applicants should not prohibit the making of copies of their proposals This RFP does not commit AGL to pay any costs incurred by any Applicant in preparation and/or submission of a proposal or for the Applicant s project, except as explicitly set forth herein or in AGL s CNG-1 rate. All costs directly or indirectly related to responding to this RFP (including all costs incurred in supplementary documentation) will be borne by the Applicant The Applicant agrees that its officers, employees or agents will not attempt to lobby or influence a vote or recommendation related to Applicant s proposal, directly or indirectly, through any contact with Company s Board members, senior executives, Program team members or other Company or AGL employees between the date Applicant submits its proposal and the date of award by AGL. 13 AGL CNG Infrastructure Program Request for Proposals

14 9.7. All documents submitted in response to this RFP will become the property of AGL The RFP will be governed by the laws of the State of Georgia. The applicable law for any legal dispute arising out of the RFP shall be the law of the State of Georgia and the parties agree to venue in Fulton County Superior Court of the State of Georgia. 14 AGL CNG Infrastructure Program Request for Proposals

15 Attachment A CNG Equipment Selection Chart Option No. Nominal Capacity GGE/hr. Year 1 Volume GGE/yr. Compressor Redundancy CNG Equipment Design: Compressors & Storage Estimated Installed Equipment Cost 1 Estimated Annual Maintenance Cost 2 Minimum Number of 2-hose Dispensers: Required/ Recommended Minimum Square Footage: Total/Min. Dimension ,000 59,999 50% 2 x 75 cfm 36,000 cf $642,000 $25,600 1/2 900 sq. ft. / % 2 x 150 cfm 36,000 cf $836,000 $35,000 1/ sq. ft. / , ,999 50% 2 x 150 cfm 36,000 cf 4 100% 2 x 400 cfm 36,000 cf $836,000 $35,000 2/ sq. ft. /25 $1,105,000 $51,200 2/ sq. ft. / , ,999 50% 2 x 400 cfm 36,000 cf 6 100% 3 x 500 cfm 72,000 cf , ,999 67% 3 x 500 cfm 72,000 cf $1,105,000 $51,200 2/ sq. ft. /25 $1,685,000 $87,400 2/ sq. ft. /25 $1,685,000 $87,400 3/ sq. ft. / > 600,000 67% 3 x 1000 cfm 72,000 cf $2,302,000 $125,000 3/ sq. ft. /30 Note1: Cost of CNG Equipment to be installed by AGL are estimates only and will change based on final equipment design, equipment purchase costs, and site conditions. 15 AGL CNG Infrastructure Program Request for Proposals Attachment A

16 Note 2: AGL s maintenance costs shown are estimates and will vary with final equipment selection, station throughput, and other operating conditions. Applicants AGL USF CNG STATION ROLES AND RESPONSIBILITIES MATRIX will be billed actual maintenance costs in accordance with AGL s CNG-1 rate. Attachment B Roles and Responsibilities 16 AGL CNG Infrastructure Program Request for Proposals

17 OPERATION & DESCRIPTION DESIGN PERMITTING 7 PROCUREMENT CONSTRUCTION OWNERSHIP MAINT. 8 Station Site and Site Improvements 1 Developer Developer Developer Developer Developer Developer CNG Compression, Storage, & Controls 2 AGL Developer AGL AGL AGL AGL CNG Dispensing 3 Developer Developer Developer Developer Developer Developer Electric Service to all Station Equipment 4 Developer Developer Developer Developer Developer Developer Gas Service/Metering for CNG Compression Skid 5 AGL AGL AGL AGL AGL AGL Communication Line for CNG Compression Skid 6 Developer Developer Developer Developer Developer Developer NOTES: 1 Station Site and Site Improvements includes providing the land and associated improvements required for the station - grading, paving, curbing, drainage, lighting, security, etc. Any traffic or vehicle flow studies are also included. 2 CNG Compression, Storage, & Controls includes the compression equipment (compressor skid, high pressure storage, and controls), concrete mounting pad for compression equipment, fencing around pad, and protective bollards. 3 CNG Dispensing includes the CNG vehicle dispenser(s); tubing between dispenser(s) and compression equipment; instrumentation, control, and power wiring/conduit between dispenser(s) and compression equipment; emergency shutdown buttons/wiring as required that are remote from the compression equipment pad; and any other equipment desired by the Developer such as card readers, dispenser islands, canopies, communication lines, etc. 4 Electric Service to all Station Equipment includes installation of an electric service from local utility (if not already at site) and power wiring/conduit to the compression equipment and any other station equipment as required such as lights, dispensers, card readers, etc. Local electric utility will likely design, construct, own, operate, and maintain the electric service up to and including the power meter. 5 Gas Service/Metering for CNG Compression Skid includes installation of new natural gas service and meter set to serve the compression equipment. Construction costs exceeding the Allowable Investment calculated for the gas service/meter set will be borne by the Developer. 6 Developer will be responsible for establishing a communication line to the CNG Compression equipment for remote monitoring and any associated monthly charges from the carrier. The specifications for this communication line are to be determined, but it may be wired or wireless and could be an Internet connection or a dedicated line. 7 AGL will provide design drawings and specifications for compression equipment and pad to Developer to include in overall site permitting package for submittal of state fire marshal, local building, and any other permit applications, as required. AGL can assist in the review of the permit documents prior to submittal. 8 AGL will require right of ingress/egress from the station site during construction and for ongoing operation and maintenance. 17 AGL CNG Infrastructure Program Request for Proposals

18 Attachment C Recommended Dispenser Specifications The following specifications apply to the fast fill fueling dispenser(s) to be installed by Project Applicant as part of the Program. Combinations of single and dual hose, 3000 PSI and 3600 PSI fills will be needed to suit the CNG Station s site-specific needs. These specifications are general to enable the Applicant to select from various manufacturers. CNG Fueling Dispenser Requirements 1. Dispenser to be compliant as a minimum to NFPA 52, NFPA 70, ASME B Temperature and pressure compensated fills to NGV code algorithm 3. Mass flow meter NIST Weights and Measures approved. Accuracy ±1%. 4. UL/CSA components only. 5. Sequenced dispensing valves in the dispenser with three line input for high, mid and low banks CNG Fueling Dispenser Recommendations 1. High hose style steel cabinet, powder coated or stainless steel 2. Single or dual hose Configurations. 3. Line filters mounted in dispenser (hi, mid and low) 4. Dispenser internal tubing ½ - ¾ stainless steel, Nominal MAWP 5000 PSI 5. Standard Flow Hoses shall be ½ x 12 ft. long with 5000 PSIG MAWP, shall have ILB1 inline breakaway mechanisms with check valves, and be electrically conductive. Retractor or High Hose configuration shall keep hose from contacting ground when nozzle is in its keeper. Nozzles shall be OPW Sherex CT High Flow Transit Hoses shall be ¾ x 12 ft. long with 5000 PSIG MAWP, shall have ILB5 inline breakaway mechanisms with check valves, and be electrically conductive. Retractor or High hose configuration shall keep hose from contacting ground when nozzle is in its keeper. Nozzles shall be OPW Sherex CT Fill pressure to F. Safety relief valve per code set at 4500 PSIG 8. Fill pressure to F. Safety relief valve per code set at 3750 PSIG 9. Pulse Calibration - Dispenser shall generate 100 pulse-count per mass of CNG dispensed (i.e. 100 pulses per gasoline-gallon equivalent of CNG). Calibrate dispensers to lb. of natural gas equals 1 GGE. 10. Venting for nozzles may be piped to a remote location or at top of dispenser. 11. Remote Fuel Management System is preferred but the CRIND system (Integral Card Reader) will also be acceptable. Receipt printer is recommended for client verification of transaction. 12. Interface with Fuel Management terminal. Furnish connections between each dispenser and the fuel management terminal for the following signals: handle switch, low-voltage meter pulser and authorize signal. Conductors of different voltages shall be routed in separate conduits 18 AGL CNG Infrastructure Program Request for Proposals Attachment C

19 13. Dispensers Required Electrical supply - 120VAC 60 HZ. 14. Dispenser display shall be able to show GGE or DGE, total fuel dispensed, price per unit of measure and total price dispensed. Back-lit displays are required for transactions. 15. Dispenser vendor to supply and install required programming and training. Sites with existing fuel dispensing will normally have an FMS for transactions and data recording, so the new CNG dispenser data system would be required connect to the existing system. Contact Manufacturer for compatibility of the systems. Sample CNG Dispenser Manufacturers: Kraus Global 25 Paquin Road Winnipeg, MB R2J 3V9 CANADA Telephone: (512) Tulsa Gas Technologies E. 48th Street Tulsa, OK Telephone: (918) ANGI Energy Systems 15 Plumb Street Milton, WI Telephone: (800) AGL CNG Infrastructure Program Request for Proposals Attachment C

20 Attachment D Application Form 1) Date: 2) Project Name: 3) Proposed CNG Station Site Address: 4) Project Applicant Company Name(s): Contact Person: Address: Phone: 5) CNG Retailer (Company Name) if separate from Project Applicant: Contact Person: Address: Phone: 6) Property Owner (Company Name) if separate from Project Applicant: Contact person: Address: Phone: 7) Fleet(s) Providing Letter(s) of Intent (Company Name): Contact person: Address: Phone: 20 AGL CNG Infrastructure Program Request for Proposals Attachment D

21 8) Station Requested from CNG Equipment Selection Chart (Indicate Option 1 8): 9) Type of Station (Public Access or Limited Access): 10) Minimum Annual Volume (GGE/Year): Year 1: Year 2: Year 3: Year 4: Year 5: 11) Information for RFP Scoring Criteria - Attach separate sheet to describe the following: A. Location Characteristics B. Growth Potential 1) Strategic fit for area wide coverage and/or green corridors 2) Proximity to interstates/major highways for ease of access, visibility, etc. 3) Proximity to other CNG Stations (farther apart is better) 4) Operating hours for public access 5) Security, tenant/cashier available 1) Additional fuel usage potential from anchor fleet 2) Project Applicant s plans for promoting CNG and growing throughput 3) Population density in surrounding area 4) Letters of interest/intent for possible incremental usage (beyond the volumes submitted above) from other fleets in the surrounding area 5) Proximity to other fleets in the area 21 AGL CNG Infrastructure Program Request for Proposals Attachment D

22 Attachment E Service Agreement AGL CNG INFRASTRUCTURE PROGRAM SERVICE AGREEMENT THIS SERVICE AGREEMENT (this Agreement ) is made and entered into as of this day of, 20 (the Effective Date ), by and between Atlanta Gas Light Company, a Georgia corporation ( Company ) and ( Project Applicant ; together with Company, the Parties, and each of them a Party ). RECITALS: WHEREAS, Company has accepted an application from Project Applicant for participation in the AGL CNG Infrastructure Program as approved by Orders of the Georgia Public Service Commission ( Commission ) entered November 29, 2011 and January 3, 2012 in Docket No , a program designed to foster the development of a market in Georgia to provide CNG to individuals and businesses to fuel motor vehicles through CNG fueling located at fueling stations open to the general public in addition to serving fleet customers; WHEREAS, the Parties desire for the provision by Company to Project Applicant of general Natural Gas delivery service to be provided under separate agreement between Project Applicant and a certificated Marketer selected by Project Applicant and such natural gas delivery services shall be governed by Company s Tariff; WHEREAS, the Parties desire for the provision by Company of certain services to convert Natural Gas to CNG at pressures suitable for CNG storage and delivery into CNG Dispensers and such services shall be governed by Company s Tariff; and WHEREAS, the Parties desire for Project Applicant to operate a CNG Station for a period of not less than five years; NOW, THEREFORE, in consideration of the terms, conditions, covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, and in order to effectuate the above arrangement, the Parties agree as follows: ARTICLE 1 DEFINITIONS The following terms, as used in this Agreement, have the following meanings: 1.1 Commission. Commission has the meaning set forth in the Recitals. 1.2 Compressed Natural Gas (CNG). Natural Gas modified by mechanical equipment and dispensed at high pressure, typically 3,600 pounds per square inch gauge (p.s.i.g.), suitable for Natural Gas to be utilized as an energy source for the propulsion of motor vehicles. 1.3 CNG Dispenser. Equipment at CNG Station provided by Project Applicant and required for use by CNG Station customers in delivering CNG to motor vehicles, as described in more detail in Exhibit A attached hereto and incorporated herein. 1.4 CNG Equipment. All devices, equipment and supporting components owned by Company and necessary, as determined by Company in its sole discretion, for Company to provide CNG Service to Project Applicant, including, without limitation, service lines, dryer, compressor(s), controls, and storage vessels, together with all piping and supporting components, as described in more detail in Exhibit A. 1.5 CNG Equipment Cost. The total installed cost of the CNG Equipment. 22 AGL CNG Infrastructure Program Request for Proposals Attachment E