BOARD MEETING DATE: December 3, 2004
AGENDA NO. 11

PROPOSAL:

Issue RFP to Install Solar Electric System at AQMD Headquarters

SYNOPSIS:

The AQMD currently has a 20kW solar photovoltaic array that was installed in 1993, providing renewable power to the building. Staff recommends augmenting the system with an additional 60 to 80 kW of newer technology photovoltaics utilizing the AQMD roof space. This additional capacity will provide the energy needed to power the electrolyzer for the hydrogen fueling station. This action is to issue a RFP for the installation of a new photovoltaic system on the AQMD roof. Funding is anticipated from the Clean Fuels Fund with additional incentives provided by the California Public Utilities Commission Self-Generation Program through the Gas Company.

COMMITTEE:

Technology, November 19, 2004, Recommended for Approval

RECOMMENDED ACTION:

Approve issuance of RFP # 2005-18 soliciting bids to install a solar electric system at AQMD headquarters.

Barry R. Wallerstein, D.Env.
Executive Officer


Background

The AQMD, through its Air Quality Management Plan (AQMP), has identified the use of clean, alternative fuels in mobile sources as a key air quality attainment strategy since mobile sources are responsible for the majority of smog-forming pollutants and harmful particulate emissions. Furthermore, the AQMD supports the use of renewable energy for long-term air quality sustainability. The challenge has been using renewable energy for mobile applications to displace emissions from this highest polluting sector. One method to achieve this displacement is to provide renewable electricity using solar panels and use the resulting energy to fuel vehicles. Although all of the major automobile manufacturers have ceased production of electric vehicles, the electricity can be used to produce hydrogen through electrolysis for fuel cell and hydrogen internal combustion engine vehicles. The renewable energy would thus be used to reduce criteria pollutants and global warming emissions.

On August 13, 2004, the AQMD officially opened its hydrogen fueling station, which uses an electrolyzer powered by the building grid. Staff recommends using renewable energy, to the extent possible, to offset the electrolyzer load by expanding the capacity beyond the current 20kW photovoltaic car port.

Proposal

Staff is proposing that a Request for Proposal (RFP) be issued to solicit bids for the installation of a solar electric system at the AQMD headquarters. Electricity from the solar system would assist in supplying power to the electrolyzer to generate hydrogen on-site. Greater state incentive credits are being given to solar systems with higher efficiency that minimize use of the roof space and advance the state of solar photovoltaic technology. Staff believes that the installation of the new system will be eligible for applicable California Public Utilities Commission (CPUC) incentives for solar energy. With these incentives, the AQMD would recover its remaining investment in about 15 years through reduced electricity consumption and reduced peak demand charges.

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 following publications:
 

1.

Antelope Valley Press

11.

La Opinion

21.

Rafu Shimpo

2.

Black Voice News

12.

La Prensa Hispana

22.

San Bernardino Sun

3.

Chinese Daily News

13.

La Voz Publications

23.

State of California Contracts

4.

Desert Sun

14.

Los Angeles Daily News

 

Register

5.

Eastern Group Publications

15.

Los Angeles Sentinel

24.

The Daily Breeze

6.

El Chicano

16.

Los Angeles Times

25.

The Excelsior

7.

El Informador

17.

Orange County Register

26.

The Signal

8.

Inland Empire Hispanic News

18.

Philippine News

27.

Wave Community Newspapers

9.

Inland Valley Daily Bulletin

19.

Precinct Reporter

   

10.

Korea Central Daily

20

Press Enterprise

   

Additionally, potential bidders will be notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and 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 Web site (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. This RFP can also be downloaded from AQMD’s RFP web site: www.aqmd.gov/rfp.

Benefits to AQMD

AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low-emission, alternative fuel technologies within its Technology Advancement Office. The AQMD has also supported a number of activities directed to commercialization of low-emission alternative fuel technologies. The AQMP for the South Coast Air Basin states that motor vehicles are the most significant source of air toxic and criteria pollutant emissions in the region. Hydrogen vehicles are the cleanest vehicles available, eliminating a range of urban air and global warming pollutants, with hydrogen fuel cell vehicles having zero emissions.

The proposed solar electric system would enable the generation of hydrogen in the cleanest method possible (i.e. renewable solar). The solar electricity will be used to offset the 100 kW electrolyzer load, which is being used to generate on-site hydrogen for fuel cell and hydrogen ICE vehicles. The solar electric system will also reduce electricity expenses during peak summer periods and electricity consumption throughout the year. In doing so, the AQMD could potentially recover its investment in about 15 years. If electricity prices continue to increase, the recovery period would be shorter.

Bid Evaluation

Proposals received will be evaluated by a diverse, technically qualified panel in accordance with criteria contained in the RFP.

Resource Impacts

Total funding for the project will be made available from the Clean Fuels Fund.

Attachment

Attachment A: RFP #2005-18 - to Design, Engineer and Install a Turn-key Solar Electric System at AQMD facilities
Appendix 1: Applicable Codes and Standards for PV installation
Appendix 2: AQMD site information
Appendix 3: Sample of a Draft Contract

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