GHG Offset Credit RFO - November 2014

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 five offset protocols as listed below:

• U.S. Forest Protocol: This protocol is generally described as activities that sequester carbon on forestland.  More information can be found here
• Urban Forest Protocol: 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 Protocol: 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 (ODS) Protocol: 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
• Mine Methane Capture (MMC) Protocol: This protocol is generally described as greenhouse gas (GHG) destruction of methane that would otherwise be vented into the atmosphere as a result of mining operations.  More information can be found here

CARB staff has proposed an additional Offset Protocol for Board approval:

• Rice Cultivation Protocol: This protocol is generally described as greenhouse gas (GHG) emission reductions associated with the implementation of rice cultivation practice changes that result in a decrease in methane emissions to the atmosphere.  More information can be found here 

SDG&E is requesting offers associated with any approved protocol.  At this point SDG&E will NOT entertain offers associated with proposed protocols. 

Solicitation Protocols

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

RFO Document (pdf)

SDG&E’s GHG Compliance Plan

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

Green House Gas / AB32 Compliance Plan (pdf)

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

1. 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).
2. Master Allowance / Offset Credit Purchase Agreement– Bidders shall submit a redline version of this form agreement as part of their offer.  Bidders may modify this document, but should be aware that SDG&E will, as part of its qualitative evaluation of bids submitted, consider the materiality of these changes.
3. Offset Credit Confirmation – Bidders shall submit a redline version of the confirmation form as part of their offer.  Bidders may modify this document, but should be aware that SDG&E will, as part of its qualitative evaluation of bids submitted, consider the materiality of these changes.
4. 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 and is Attachment I of the Confirm.
5. Credit Application – A completed credit application will be required for all Offers seeking unsecured credit or planning to provide a parental guarantee.
6. 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@sdge.com) and to SDG&E’s Independent Evaluator (Sedway Consulting, Inc. - Alan.Taylor@sedwayconsulting.com ) no later than 11:59 p.m. Pacific Standard Time, on the RFO CLOSING DATE (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 2014 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.

RFO Communication

All questions or other communications regarding this RFO should be submitted via e-mail to GHGOffsetRFO@sdge.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

• 2014 Offset RFO Questions and Answers (pdf)

SDG&E’s 2014 Offset RFO Pre-Bid Conference on November 7, 2014

Date: November 7, 2014
Time: 9AM – 11AM Pacific Time
Location: Webinar and in person
Audience link: https://engage.vevent.com/rt/sempra/index.jsp?seid=99
Participant dial in (toll-free): (866) 244-4515

• SDG&E Offset RFO Presentation (pdf)

SDG&E will host one pre-bid conference in San Diego, California. The conference will be held via conference call and webinar and in person (watch this site for further details).Century Park is a secure campus, so individuals planning to attend in person must RSVP via email to GHGOffsetRFO@sdge.com. Though encouraged, participation in the pre-bid conference is NOT mandatory in order to submit an offer. Please monitor the RFO Website periodically.

Any party interested in attending this pre-bid conference and/or webinar should email the information below to GHGOffsetRFO@sdge.com and to the Independent Evaluator at Alan.Taylor@sedwayconsulting.com.

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