BOARD MEETING DATE: April 2, 2010
AGENDA NO. 4
PROPOSAL:
Execute Contract for Reforestation within Angeles Forest Burn Area
SYNOPSIS:
This action is to execute a contract with the National Forest Foundation to generate GHG reductions through reforestation in the Station Fire area, in an amount not to exceed $1,500,000 with an option to add an additional $300,000. Funding for this project is from Chevron’s CEQA mitigation fees.
COMMITTEE:
Climate Change, December 18, 2009 and February 5, 2010, Reviewed
RECOMMENDED ACTION:
Execute a sole source contract in an amount not to exceed $1,500,000 with the National Forest Foundation for developing verifiable GHG reductions through reforestation of the Station Fire burn areas within the Angeles National Forest from the CEQA Green House Mitigation Fund (49).
Barry R. Wallerstein, D.Env.
Executive Officer
Background
The AQMD was the Lead Agency for the CEQA document for the Chevron Product Reliability Optimization (PRO) project at their existing El Segundo refinery. The PRO project involves modifications and additions to increase the reliability, energy efficiency, and capacity of specific existing refinery processing equipment; allows the processing of a wider range of crude oils; and voluntarily reduces potential atmospheric emissions from existing pressure relief devices. It was concluded in the Final EIR (May 2008; SCH No. 2007081057) the GHG emissions from the PRO project were significant and would result in the additional release of 194,000 metric tons (MT) of CO2e per year. Chevron mitigated the GHG emissions through a $1.5 million contribution to the AQMD for a project which would produce verifiable and quantifiable GHG emission reductions. Funds of $1.5 million were received from Chevron on December 30, 2008 and placed in a special revenue fund. In addition, if by June 30, 2010 the AQMD determines sufficient funds have not been paid by Chevron to fully offset the GHG emissions from the PRO project, Chevron may fund the shortfall up to a maximum of 20 percent above the original payment for a total of $1.8 million. This request is in progress.
The AQMD staff has looked at numerous GHG reduction projects to obtain high quality verifiable additional reductions in the most cost effective manner within the South Coast basin. The GHG reduction projects explored include the GHG reduction project protocols currently adopted under Reg. XXVII – Climate Change, AQMD’s program for generation and certification of GHG reductions. These protocols include GHG reduction projects for urban tree planting, forestry, and manure management. In addition, staff also explored the possibility of using the Chevron funds for replacing existing lighting with LED lighting. Review of these projects determined reforestation using the Forestry protocol would provide the most cost effective GHG reductions.
Wildfires over the past years in the Southern California Mountains have resulted in large previously forested areas needing human intervention for replanting. The intensity of the fires within these areas has destroyed seeds that would otherwise provide for natural re-vegetation. The recent Station Fire in the Angeles National Forest burned an area of 162,000 acres (253 square miles), including 32,000 acres of forested land. An estimated 11,000 acres of forested land will need reforestation. The U.S. Forest Service would like to reforest the 11,000 acres within three years but has limited funds for these efforts. Quick restoration of these areas is needed for slope stabilization, reintroducing the endangered species collected after the fire, and preventing the growth of invasive species. Trees also provide air quality benefits.
Proposal
Staff recommends that a sole source contract be executed with the National Forest Foundation (NFF) for the reduction of greenhouse gases through reforestation within the Station Fire burn areas. The NFF through a master memorandum of understanding with the U.S Forest Service is the only party allowed to develop reforestation projects within U.S Forest Service lands for verified GHG reductions. The reforestation project with NFF will result in the reductions of at least 280,000 MT of CO2e over the period of one hundred years and reforestation of at least 1,800 acres. The initial contract amount will not exceed a total cost of $1,500,000. The AQMD would retain the option, at a future date, to add an additional $300,000 towards this contract for an amount not to exceed $1,800,000 and with revised GHG reductions to be at least 330,000 MT of CO2e. All GHG reductions developed under this contract will be verified by a third party hired by the NFF with AQMD approval. GHG reductions will be retired as mitigation for GHG emissions related to the PRO project.
Sole Source Justification
The NFF, through a master memorandum of understanding with the U.S. Forest Service, is the only party allowed to develop reforestation projects within National Forests for verified GHG reductions. The request for the sole source contract is made under Section VI.A.4.a of the Procurement Policy and Procedure; the items are available from only one source.
Resource Impacts
Total funding for the reforestation efforts will not exceed $1.5 million from the CEQA Green House Mitigation Fund (49) with an option to add another $300,000, paid for by Chevron as required mitigation for GHG impacts from its PRO project. Existing staff resources will be adequate to administer the contract.