FROM: Robert Thompson, General Manager
Originator: Lan C. Wiborg, Director of Environmental Services
SUBJECT:
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EMISSION REDUCTION CREDITS BROKER CONTRACT AWARD RECOMMENDATION
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION:
A. Approve a Professional Consultant Services Agreement with Air Quality Consultants (AQC) Environmental Brokerage Services, Inc. for Emission Reduction Credits Brokerage Services, Specification No. CS-2023-1379BD-R, to identify and secure buyers for the sale of Orange County Sanitation District's surplus inventory of Reactive Organic Gases Emission Reduction Credits at the best available value, and handle all market evaluation of Emission Reduction Credits, negotiations, and financial transactions with all appropriate parties; and
B. Approve an Agreement duration of one year from the Notice to Proceed effective date with four (4) one-year renewal options at a commission rate of 3.5%.
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BACKGROUND
Orange County Sanitation District (OC San) holds a portfolio of Air Quality Emission Reduction Credits (ERCs) including, but not limited to, Reactive Organic Gases (ROGs). ERCs are treated as an interchangeable commodity. To acquire an air quality permit for new projects that result in an increase in emissions, the owner of the project is required to offset the difference in emissions with ERCs. Following a comprehensive review of future Capital Improvement Project needs, it has been determined that OC San has a surplus of ROG credits. As a conservative approach, OC San is retaining twice the number of ROG credits that could be allocated to offset future projects. As such, the remaining number of credits available for possible sale is 360 lbs./day.
OC San does not currently have a brokerage firm to handle market evaluations and represent our interest in the sale of the surplus credits. For this reason, OC San issued a Request for Proposal (RFP) in March 2023. The RFP was for a brokerage...
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