BOARD MEETING DATE: April 1, 2005 AGENDA NO. 6

Renewable energy is essential for achieving and sustaining long-term air quality and energy independence. Solar-based electricity is one of the cleanest forms of electricity that can be generated on-site, thereby significantly reducing greenhouse gases and criteria pollutants.

On December 2004, the Board issued RFP (P#2005-18) soliciting bids to install a 60 to 80 kW solar based electric system on the AQMD roof. These panels will reduce peak-use electricity, especially during the summer months. It is estimated that AQMD will recover almost all its investment in these solar panels within the next 15 years from electricity cost savings.

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting applications was published in the following publications on two separate days:

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 were 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 was 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). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

By the closing date of February 25, 2005, five bids were received. The review panel (Panel) that evaluated and scored these bids consisted of five scientists and/or engineers: three outside professionals, drawn from two utilities in the Basin and a national laboratory, as well as two AQMD staff members. The panel consisted of one Asian-Pacific Islander and four Caucasian; one female and four male.

The RFP identified 100 possible points for the technical score, 30 possible points for the cost score, and a maximum of 15 additional points for meeting the additional criteria of local business, disabled veteran, small business, and/or the use of low-emission vehicles in the bidder’s fleet. The Panel evaluated the technical merits of the proposals. As outlined in the RFP, proposals not receiving at least 60 points in the technical review were not considered qualified for further review.

Five proposals were received in response to the hydrogen station portion of the RFP. The bidders were SolSource Energy, New Vision Technologies, LP Daniel, Renewable Technologies and Mohr Power. The Panel evaluated the proposal in terms of their technical qualifications based on the criterion as outlined in the RFP. A minimum score of 60 points in the technical criterion was required for further consideration. The results of the Panel evaluation are listed in Table 1.

Table 1 Results of Panel Evaluation of Proposals Received in Response to RFP #2005-18
	Review Panel
Proposer	1	2	3	4	5	Average
Sol Source Energy	96	83	89	92	100	92.0
LP Daniel	95	74	78	88	93	85.6
New Vision Technology	76	78	73	81	92	80.0
Renewable Technology	79	71	65	73	94	76.4
Mohr Power	79	64	60	61	83	69.4

The bidders, who qualified on technical grounds, were moved to the next level, and were scored for cost and other additional criteria. The total scores are summarized as follows:

*Additional criteria include points for being small business, local business, disabled veteran business and/or for the use of low-emission vehicles in the fleet.

Based on the total score, staff recommends that the Board award a contract to the bidder with the highest score, SolSource Energy for an amount not to exceed $360,000. The total project cost is estimated to be $693,000. The AQMD’s cost-share will cover the cost of installing the solar panels ($335,000), related hardware and software system and a viewing kiosk in the lobby ($15,000), an extended warranty ($5,000), and a small contingency ($5,000) to cover any unexpected costs.

Subject to meeting certain key deadlines, the remaining balance of $333,000 would be paid with the CPUC Self-Generation Incentive Funds, already reserved through Southern California Gas Company. The vendor will be directly reimbursed with these incentive funds.

The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in southern California to achieve air quality standards. This project will demonstrate the generation of electricity from solar energy displacing the need to generate electricity from scarce fossil energy resources. In addition, solar-generated electricity, including other forms of renewable energy, can potentially displace emissions in mobile sector such as generating hydrogen for zero-emission fuel cell cars. Furthermore, the deployment of solar technologies would decrease greenhouse gas emissions, add distributed generation to the California electricity grid, improve the grid’s reliability and mitigate the need to build expensive transmission lines to carry additional capacity.

AQMD’s contribution for this solar electric system would be in an amount not to exceed $360,000 from the Clean Fuels Fund. The remainder of the costs will be covered through the CPUC Self-Generation Incentive Program. Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources and stationary sources to support projects to increase the utilization of clean fuels, including advancing the development of enabling technologies.