GHG Offset Credit RFO - September 2013

San Diego Gas & Electric Company (“SDG&E”) is issuing this Request for Offers (“RFO”) to solicit offers from eligible Offset Providers (“Bidders”). By responding, Bidders are bound by the terms of this RFO.

SDG&E is required to procure GHG Compliance Instruments to satisfy its obligations under California’s Cap & Trade Program “the Program”.  Compliance Instruments can be CARB issued Allowances or CARB approved Offsets.  Up to 8% of an entity’s compliance obligation can be met with offsets. The California Public Utilities Commission “CPUC” has allowed for Investor Owned Utilities (“IOUs”) to procure CARB approved offsets with the stipulation that the seller (or Bidder in this context) must assume the invalidation risk.

SDG&E is seeking offers for offset credits that either meet or will meet CARB’s offset protocol requirements from Bidders that will take on the invalidation risk as required by the CPUC. 

CARB has approved four offset protocols as listed below:

  • U.S. Forest Projects: This protocol is generally described as activities that sequester carbon on forestland.  More information can be found here
  • Urban Forest Projects: This protocol is generally described as greenhouse gas (GHG) removal enhancements associated with a planned set of tree planting and maintenance activities to permanently increase carbon storage in trees.  More information can be found here
  • Livestock Projects: This protocol is generally described as greenhouse gas (GHG) emission reductions associated with the installation of a biogas control system (BCS) for manure management on dairy cattle and swine farms.  More information can be found here
  • Ozone Depleting Substances Projects: This protocol is generally described as greenhouse gas (GHG) emission reductions associated with the destruction of high global warming potential ozone depleting substances (ODS) sourced from and destroyed within the U.S. that would have otherwise been released to the atmosphere.  More information can be found here

SDG&E is requesting offers associated with any approved protocol as long as prior to delivery to SDG&E, each offset credit is held in a holding account of an entity registered with CARB and suitable for transfer to SDG&E.  No other offset types/protocols will be considered.

Solicitation Protocols

Details regarding the solicitation process and eligibility requirements are provided in the RFO document below.

SDG&E’s GHG Compliance Plan

As part of SDG&E’s Long Term Procurement Plan (LTPP), SDG&E has published it’s GHG Compliance plan (Appendix F to the LTPP).  This is referenced in the RFO document and is provided here for your information and convenience:

Required Forms and Documents

Bidders may submit offers to this solicitation by submitting the forms listed below which are available on the RFO Website. Failure to provide the required information may result in the offer being deemed non-conforming and may disqualify the offer from further consideration.

Required Forms

  • Offer Form – this form includes the details of the pricing associated with the offer.  Pricing may be provided on a fixed dollar amount basis or an index basis (that is, tied to the average clearing price of the previous four quarterly CARB allowance auctions).
     
  • Master Allowance / Offset Credit Purchase Agreement
    Offset Credit Confirmation
    – Bidders shall submit a redline version of these form agreements as part of their offer.  Bidders may modify these documents, but should be aware that SDG&E will, as part of its qualitative evaluation of bids submitted, consider the materiality of these changes.
     
  • Project Description Form – this includes a written description of the project as well as other information SDG&E is seeking related to the project / Offer.
     
  • Credit Application – A completed credit application will be required for all Offers seeking unsecured credit or planning to provide a parental guarantee.
     
  • Supplier Diversity Information Form – For Diverse Business Enterprise (DBE) Bidders, a copy of certification documents received from the California Public Utilities Commission is requested.

Submitting Offers

Any party interested in submitting an offer must submit the offer via electronic mail (email) to both the Offset RFO inbox ( GHGOffsetRFO@semprautilities.com ) and to SDG&E’s Independent Evaluator ( Alan Taylor of Sedway Consulting - Alan.Taylor@sedwayconsulting.com ) no later than 11:59 p.m. Pacific Standard Time, on October 11, 2013 (see RFO Schedule).  The email should contain attachments of all required forms and bid materials. The Subject line of the email should be as follows: Bid Submission for SDG&E’s 2013 Offset RFO. A reply email from the Offset RFO inbox will be sent to the email address submitting the offer to confirm receipt of the offer.

If Bidders encounter technical difficulties with emailing, they should provide evidence of such difficulties (e.g. a screen shot of the error message) and email the bid again to the Offset RFO as soon thereafter as possible.

GHG Offset RFO Schedule

The following schedule and deadlines apply to this RFO. SDG&E reserves the right to revise this schedule at any time and at SDG&E's sole discretion. Bidders are responsible for accessing the RFO website for updated schedules and possible amendments to the RFO or the solicitation process.

No.

Item

Date

1.

RFO Issued

9/18/2013

2.

SDG&E briefs its Procurement Review Group (PRG) on RFO progress

9/20/2013

3.

Pre-Bidder’s Conference in San Diego, California (including dial-in / webinar)

9/26/2013

4.

DEADLINE TO SUBMIT QUESTIONS
Question submittal cut-off date. Answers to all questions will be   
posted on the RFO website http://www.sdge.com/2013GHGOffsetRFO  
no later than 1 week following question submittal cutoff date.

10/4/2013

5.

CLOSING DATE:
Offers must be e-mailed to SDG&E at GHGOffsetRFO@semprautilities.com
no later than 11:59pm (local prevailing time) – cc provided to the Independent
Evaluator at  Alan.Taylor@sedwayconsulting.com

10/11/2013

6.

SDG&E briefs its PRG on RFO progress to date (including short-list)

10/18/2013

7.

SDG&E notifies short-listed Bidders

10/25/2013

8.

Letter due from short-listed Bidders indicating:

  1. Withdrawal from SDG&E’s solicitation; OR
  2. Acceptance of short-listed standing (and withdrawal of Offer from all other solicitations)

10/30/2013

9.

SDG&E and short listed Bidders commence negotiations (credit terms / contract language)

10/30/2013

10.

SDG&E issues appreciation notices to unsuccessful Bidders

10/31/2013

RFO Communication

All questions or other communications regarding this RFO should be submitted via e-mail to GHGOffsetRFO@semprautilities.com. All questions and answers will be posted on this website anonymously. SDG&E will not accept questions or comments in any other form, except during the pre-bid conference. Bidders are encouraged to check this RFO Website periodically for updates, notices, and postings.

GHG Offset RFO Questions and Answers

Questions and Answers (Updated 10/08/13)

SDG&E’s 2013 Offset RFO Pre-Bid Conference on September 26, 2013

Date: September 26, 2013

Time: 10AM – 12PM

Location:
Conference Room CP31Video at SDG&E’s Century Park campus
8315 Century Park Court, San Diego, CA 92123

Audience link: https://engage.vevent.com/rt/sempra~092613_1623877

Participant dial in (toll-free): (866) 219-5829

 

SDG&E will host one pre-bid conference on September 26, 2013, in San Diego, California. The conference will be held via conference call and webinar and in person at SDG&E’s Century Park campus.  Century Park is a secure campus, so individuals planning to attend in person must RSVP via email to GHGOffsetRFO@semprautilities.com. Though encouraged, participation in the pre-bid conference is NOT mandatory in order to submit an offer. Please monitor the RFO Website periodically.

Offset RFO Pre-Bid Conference Presentation

Any party interested in attending this pre-bid conference and/or webinar should email the information below to GHGOffsetRFO@semprautilities.com.

  • Company name
  • Attendees’ names, titles and contact information