HomeMy WebLinkAbout2026-09-22 - AGENDA REPORTS - TEMPORARY HYDROGEN REFUELING SVCS CONTRO
Agenda Item: 9
CITY OF SANTA CLARITA
.` AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: September 22, 2026
SUBJECT: TEMPORARY HYDROGEN REFUELING SERVICES CONTRACT
DEPARTMENT: Economic Development
PRESENTER: Adrian Aguilar
RECOMMENDED ACTION
City Council:
1. Award a four -month contract with five one -month extensions to ZeroUp Energy, Inc., for the
rental of temporary hydrogen refueling equipment and the delivery of hydrogen, in an
amount not to exceed $1,726,000.
2. Appropriate one-time Federal 5307 grant funds in the amount of $407,500 to Transit Capital
Outlay, Contractual Services Expenditure Account (7003702-516101), and increase
Miscellaneous Federal Grants Revenue Account (700-442409) by $407,500, for the rental of
temporary hydrogen fueling equipment.
3. Authorize the City Manager or designee to execute the five, one -month contract extensions,
not to exceed the annual contract amount.
4. Authorize the City Manager or designee to execute all contracts and associated documents,
subject to City Attorney review.
BACKGROUND
In accordance with the State of California's Innovative Clean Transit (ICT) regulation, Santa
Clarita Transit (SCT) is actively transitioning its fleet from diesel and compressed natural gas
(CNG) vehicles to a fully zero -emission fleet by 2040. This transition is being implemented
through a phased fleet replacement strategy, infrastructure investments, and the deployment of
multiple zero -emission technologies to ensure compliance with ICT's regulation and
environmentally sustainable operations. Hydrogen fuel cell electric buses (FCEBs) are a key
component of SCT's long-term fleet strategy, offering extended range and fast refueling for
fixed -route service.
Page 1
Packet Pg. 43
O
To support the FCEB fleet, SCT is constructing a state-of-the-art hydrogen production and
fueling station at the Transit Maintenance Facility. This facility is designed as a scalable, end -to -
end solution capable of supporting current and future fleet demands, including on -site hydrogen
production, compression, storage, and dispensing. The station will enable SCT to generate and
utilize hydrogen locally, improving operational longevity while reducing reliance on delivered
fuel.
Due to extended lead times for key equipment, construction of the permanent hydrogen
production and fueling station at the Transit Maintenance Facility has been delayed and SCT
requires a temporary mobile hydrogen refueling solution. As SCT prepares to deploy hydrogen
fuel cell electric buses into revenue service, the temporary refueling services will provide interim
hydrogen fueling, ensuring operational continuity, minimizing service disruptions, and allowing
SCT to proceed with planned vehicle deployment timelines while the permanent station
continues construction and becomes fully operational.
While the cost of the temporary fueling equipment rental was unanticipated and a new
expenditure, the cost of the hydrogen fuel would have been incurred regardless of the temporary
fueling arrangement, as the City of Santa Clarita (City) would have incurred the associated water
and electric utility costs to produce hydrogen at the permanent station. If approved, federal
funding earmarked for the construction of the hydrogen station would be appropriated to cover
the cost of the temporary equipment rental and the funding currently budgeted for utilities will be
used to pay for the cost of the delivered hydrogen.
Solicitation Process
The City issued a Request for Proposals (RFP) on July 20, 2026, to solicit proposals for
temporary hydrogen mobile refueling services to support the launch of SCT's initial seven
hydrogen fuel cell electric bus roll -out. The RFP closed on August 20, 2026, with 32 vendors
downloading the RFP and a total of four proposals received.
A panel of three City staff members and two consultants reviewed and evaluated each of the four
proposals. Each proposal was scored based on the vendor's ability to meet the fueling demands
of the City's new hydrogen buses and on the following selection criteria:
Criterion
Weighted Points (100 Points Total)
Contractor Qualifications and Experience
15 Points
System Design and Capabilities
25 Points
Technical Approach and Program Management
25 Points
Safety Management
10 Points
Cost of Materials and Services
25 Points
The final results of the proposal evaluations are shown below:
Page 2
Packet Pg. 44
O
Vendor
Total Score (/100 Points)
ZeroUp Energy, Inc.
85 Points
Avina Clean Hydrogen, Inc.
78 Points
Simoneta LTD, DBA Hyroad Energy
70 Points
WestAir Gases & Equipment, Inc.
61 Points
Transit staff recommends the award of the temporary hydrogen refueling services contract to
ZeroUp Energy, Inc., as they were the highest -ranked vendor in the evaluation process. This
contract will have an initial four -month term, with the option to extend the contract on a monthly
basis for up to five months, exercisable at the sole discretion of the City, subject to continued
need, satisfactory performance, availability of funding, and written authorization.
FISCAL IMPACT
Upon approval of the recommended actions, budget for the Transit Capital Outlay, Contractual
Services Expenditure Account (7003702-516101) will increase by $407,500 and Miscellaneous
Federal Grants Revenue Account (700-442409) will increase by $407,500. Additionally,
sufficient funding is available in the Transit Gas Utility Account (7003700-513102) for Fiscal
Year 2026-27 in the amount of $1,318,500 to cover the remaining contract balance.
Page 3
Packet Pg. 45