The city of Montebello, Calif., signed an agreement with Clean Energy to build a new compressed natural gas (CNG) fueling station at its Montebello Bus Lines facility. The supplier was awarded a $2.1 million contract and expects to begin construction in May 2011.

The new alternative fuel station is part of the Montebello Bus Lines proactive emissions reduction program, which will include replacing older diesel models in its fleet with cleaner-burning CNG buses as they retire from service.

Three new New Flyer CNG-fueled buses arrived in January 2011 and, over the next four years, all 23 diesel-powered buses in the fleet will be replaced with CNG vehicles.

In addition to reducing its carbon footprint and fuel expenses, the new low emission buses will help the transit agency meet California’s air quality requirements.

“The construction of this new facility is a very important step forward for us,” said Aurora Jackson, Director of Transportation for Montebello Bus Lines.

“We have a deep commitment to the environment, and to providing our customers with the most modern and sustainable transit equipment and technologies available today,” she added. “This new facility will allow us to offer our customers a more environmentally friendly way to travel, while also helping us substantially lower our yearly operating expenses.”

The American Recovery and Reinvestment Act (ARRA) will fund the entire cost of the fueling station’s construction, and the first year’s preventive maintenance costs and 24-hour emergency response services. In addition, ARRA will cover utility construction costs, which will be provided by Southern California Gas and Southern California Edison.

Total ARRA funding for the project is $2.4 million.