BOARD MEETING DATE: February 1, 2008
AGENDA NO. 7

PROPOSAL:

Execute Contract to Provide Electricity Resource Planning for the South Coast Air Quality Management District Region

SYNOPSIS:

On October 5, 2007, the Board approved release of an RFP to solicit bids to provide electricity resource planning. This effort will analyze potential energy and capacity needs for the AQMD region and identify desirable locations for power generation based on system reliability and stability, as well as environmental concerns. It will also assess opportunities and barriers for low-polluting energy generation technologies. This action is to execute a contract with Global Energy Decisions, Inc. in an amount not to exceed $447,000. Funding for this contract is available from the AQMD Rule 1309.1 Mitigation Fee Priority Reserve Fund.

COMMITTEE:

Stationary Source, January 18, 2008, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute a contract with Global Energy Decisions, Inc. to provide electricity resource planning in an amount not to exceed $447,000.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In August 2007, AQMD amended its Rule 1309.1 to allow power plants conditional access to the Priority Reserve. While these new natural gas-fired power plants are significantly less polluting compared to their predecessors or other fossil-fueled power plants and have to meet additional stringent emission limitations as a pre-condition to access the Priority Reserve, community representatives expressed concerns about the level of criteria pollutants (NOx, and PM2.5 emissions) and green house gases that are released from these plants and strongly advocated the need to rely on energy conservation, renewable/alternative energy rather than fossil fuel based energy generation.

In response to these community concerns , the adoption resolution of the August 2007 Rule 1309.1 amendment and the AQMD three-year research plan committed staff to conduct a multi-phase energy resource planning study. Part of this effort is to identify avenues to maximize low-emitting production to meet the Basin’s needs. The committed maximum funding is up to $1 million from R1309.1 mitigation fees. On October 5, 2007, the Board released RFP #P2008-05 to solicit consultants capable of providing the initial phase of this effort for electricity resource planning. This effort will analyze potential energy and capacity needs for the AQMD region and identify desirable locations for power generation based on system reliability and stability, as well as environmental concerns. It will also assess opportunities and barriers for low-polluting energy generation technologies.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was 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 have been notified utilizing 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, the State of California Contracts Register website, and placed on the Internet at AQMD’s Web site. Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Fifteen copies of the RFP were mailed out in response to requests and five bids were received in response to the RFP when final bidding closed at 1:00 p.m. on September 6, 2007. All five bids were deemed responsive, one was a small business and four others used small business subcontractors.

Attachment 1 reflects the evaluation of the proposals and the respective costs for the consultants who submitted bids. Using the prescribed evaluation criteria to consider cost, technical qualifications and minority/small business status, the highest overall score of the responsive quotes was for Global Energy Decisions, Inc. Staff recommends that the Board award the contract to Global Energy Decisions, Inc. for the electricity resource planning contract.

Panel Composition

The proposal evaluation panel consisted of one AQMD Clean Fuels Officer, one Energy Division Supervisor with the California Public Utilities Commission, one consultant for environmental and energy issues, one Senior Transmission Planner with the California Energy Commission, and one Manager of Resource Planning with Southern California Edison. Of these five panelists, five are male and Caucasian.

Resource Impacts

Funding for this contract is available from the AQMD Rule 1309.1 mitigation fee priority reserve fund.

Attachment

1 - Evaluation of Respondents to RFP #2008-05

ATTACHMENT 1
Evaluation of Bids from Respondents to RFP #2008-05