BOARD MEETING DATE: November 5, 2010
AGENDA NO. 14

PROPOSAL:

Issue RFP for GHG Reduction Projects 

SYNOPSIS:

This action is to issue an RFP soliciting bids for proposed projects to generate certified GHG reductions. Projects proposed under this RFP must follow one of the GHG reduction protocols adopted under AQMD Reg. XXVII – Climate Change. Funding for these proposed projects will not exceed $300,000 from Chevron’s CEQA mitigation fees. 

COMMITTEE:

Climate Change, October 13, 2010. Less than a quorum was present for the discussion of this item. The Committee Members present expressed their concurrence that this item be recommended for approval by the Board. 

RECOMMENDED ACTION:

Approve issuance of RFP #P2011-10 to solicit proposals to develop GHG reduction projects within AQMD’s jurisdiction.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMD has established the SoCal Climate Solutions Exchange to ensure the development of real, surplus, quantifiable, and verifiable GHG reductions through projects undertaken in Southern California. Focusing these projects within Southern California provides incentives for local investments, aids local businesses and communities, and also provides co-pollutant reductions. GHG projects developed under the SoCal Climate Solutions Exchange must follow an adopted GHG reduction protocol. Currently these protocols include projects for forestry, urban forestry, manure management, and boiler efficiency improvements. Under this RFP, only projects developed in accordance with the four protocols under AQMD Rule XXVII- Climate Change will be considered.

Funding for the GHG reduction projects will be from $300,000 that Chevron paid as additional mitigation funds for their Chevron Product Reliability (PRO) project at their existing El Segundo refinery. Previously, Chevron paid $1.5 million towards mitigation to the AQMD. These funds are currently being used to develop GHG reductions through the reforestation of areas within the Station Fire in the Angeles National Forest. The AQMD requested Chevron to pay an additional $300,000, to further mitigate GHG emissions, which was received in August 2010. AQMD has elected to use this $300,000 to seek other GHG projects.

Under the RFP, proposals will be received to develop certified GHG reductions within AQMD’s jurisdiction following any of the approved protocols in Reg. XXVII – Climate Change.

Proposals

Staff requests the Board to authorize the issuance of an RFP to solicit bids from qualified contractors to develop and undertake GHG reduction projects following one or more of the protocols adopted under AQMD Reg. XXVII – Climate Change.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids will be published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may be notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s website (http://www.aqmd.gov where it can be viewed by making menu selections “Inside AQMD”/“Employment and Business Opportunities”/“Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html). Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Proposals will be reviewed and evaluated by a diverse, technically qualified panel in accordance with criteria contained in the attached RFP. Points will be awarded in the RFP evaluation process to proposals that meet the technical requirements and are cost effective. Points are also available for quantifiable co-pollutant reductions and projects that will occur within five miles of the Chevron El Segundo refinery.

Schedule of Events

The anticipated schedule of events for the RFP is as follows:

Resource Impacts

The funds for these projects have already been obtained from Chevron and will not exceed $300,000 out of the CEQA Green House Gas Mitigation Fund (Rule 2702) (Fund 49). Existing staff resources will be adequate to administer and review the RFP.

Attachment (DOC, 811k)

RFP #P2011-10 - Greenhouse Gas Reduction Projects