Posting Language
Title
Authorize negotiation and execution of an amendment to the Compressed Natural Gas Motor Fuel Retail Vendor Permit and Lease with Clean Energy, a California corporation, to add a not to exceed amount of $1,000,000 for the second five-year renewal term beginning on January 1, 2026, and ending on December 31, 2030. Funding: $150,000.00 is available in the Fiscal Year 2025-2026 operating budget of Austin Aviation. Funding for the remaining term is contingent upon available funds in future budgets.
De
Lead Department
Austin Aviation.
Fiscal Note
Funding in the amount of $150,000.00 is available in the Fiscal Year 2025-2026 operating budget of Austin Aviation. Funding for the remaining term is contingent upon available funds in future budgets.
Prior Council Action:
City Council - On November 19, 2009, Council authorized negotiation and execution of a lease with Clean Energy, a California corporation, at Austin-Bergstrom International Airport for the development and operation of a compressed natural gas motor vehicle fueling station, for an initial term of ten years, with the option to renew for up to two additional terms of five years each.
For More Information:
Inquiries should be directed to Tracy Thompson, Airport Chief Officer - Business & External Affairs at tracy.thompson@flyaustin.com, <mailto:tracy.thompson@flyaustin.com> 512-530-5023.
Council Committee, Boards and Commission Action:
This item was approved at the Austin Airport Advisory Commission meeting on November 13, 2025, on a 6-0-0-5 vote.
Additional Backup Information:
This item requests Council to authorize the negotiation and execution of an amendment to the Compressed Natural Gas Motor Fuel Retail Vendor Permit and Lease (Agreement) with Clean Energy, a California corporation, (Clean Energy) to add a not to exceed amount of $1,000,000 for the second five-year renewal term beginning on January 31, 2026, and ending on December 31, 2030. The amendment will provide the ability of the City to continue to purchase compressed natural gas from Clean Energy from this location for the operation of the shuttle bus fleet at Austin-Bergstrom International Airport for the term of the amendment.
On January 1, 2010, the City and Clean Energy entered into the Agreement with an initial term of ten years, with the option to renew for up to two additional terms of five years each.
On July 15, 2015, the City and Clean Energy executed the First Amendment to the Agreement to clarify the calculation of the value of the City’s purchase option, to require upgrades to Clean Energy’s station, among other revisions.
On November 1, 2019, the City and Clean Energy executed the Second Amendment to the extend the term of the Agreement from December 31, 2020, to December 31, 2025, among other revisions.
Clean Energy seeks to renew the term of the Agreement for an additional five years from January 1, 2026, to December 31, 2030. This is the last renewal available to Clean Energy under the Agreement. In addition, the City and Clean Energy seek to add a not to exceed amount of $1,000,000 for the purchase of compressed natural gas for the five-year term beginning on January 1, 2026, and ending on December 31, 2030.
If a contract is not secured, Austin Aviation will be unable to continue operating the fleet of shuttle buses resulting in large-scale operational disruptions.