TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 6, 2015
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Report on advertisement of Request for Proposal 15-RFP-25 Environmental Attributes Services Provider
Body
Dear Sir:
Request for Proposal (RFP) documents have been prepared for 15-RFP-25 Environmental Attributes Services Provider, at the request of the Engineering Department.
The District has processes and facilities which through their performance may qualify for environmental attributes under various environmental programs. These environmental attributes may hold monetary value in the form of credits. For example, the hydroelectric power produced at the Lockport Powerhouse may qualify for Renewable Energy Credits which the District could sell in the marketplace and earn revenue. The process to qualify assets for environmental attributes and to actively sell such credits in the marketplace can be complex. Therefore, the Engineering Department is seeking to contract with an environmental attribute services provider possessing the requisite expertise to prepare an analysis of the potential value of the un-contracted attributes associated with the District’s facilities, as well as a detailed plan to capture any such identified value. Upon the District’s approval of the submitted plan, the services provider would perform all actions necessary to implement the plan, including asset registrations and/or validations and generation and/or emissions verifications. In addition, the services provider should have the transactional relationships and capabilities necessary to monetize these attributes, as well as the operational knowledge to create, track, and deliver the attributes to the identified markets.
In addition, the service provider would provide guidance for ongoing legislative and regulatory efforts that may impact the value of any identified attributes. The services provider should have experience in carbon reduction programs, renewable energy programs, and renewable fuel programs. The goal is for the services provider to achieve maximum returns for the attributes under the current markets while recommending strategies to best position the District for the future market conditions.
The successful proposer would enter into an agreement with the District, wherein the services provider would purchase from the District and take title to identified attributes, remitting payment for these attributes directly to the District. The District would not directly pay for the services; rather, the services provider would earn its compensation through the transaction process. The RFP process would evaluate the proposed payment structure of each proposer. The District would be responsible for providing information and authorizations necessary to assist the services provider in its work. The term of the agreement would be three years.
The estimated monetary benefit from this RFP may be in the range of $100,000.00 to $400,000.00 per year, although market conditions and regulations will dictate actual returns.
A bid deposit is not required for this RFP.
Since the services are consulting in nature, and there are no direct out-of-pocket expenses for the District, the Multi-Project Labor Agreement or the District’s Affirmative Action Ordinance does not apply.
The tentative schedule for this RFP is as follows:
Advertise August 12, 2015
Proposals Received September 11, 2015
Award of contract October 1, 2015
Requested, Catherine A. O’Connor, Director of Engineering, TK
Respectfully Submitted, Darlene A. LoCascio, Director of Procurement and Materials Management