RFQ for 3MW Forest Biomass to Energy Facility 1
REQUEST FOR QUALIFICATIONS
Project Development Team for a 3MW Forest Biomass to Energy
Facility in Camptonville, California
Issue Date: August 8, 2016 Site Tour: August 17, 2016, 1pm Submission Deadline: September 9, 2016, 5pm
Request to: Experienced small-scale renewable energy project development and operations teams
INTRODUCTION
Camptonville Community Partnership (CCP), a small, non-profit organization, in collaboration with a local private landowner, the Yuba Watershed Protection and Fire Safe Council, and the Camptonville community, is working to develop the Forest Biomass Business Center (FBBC), a 3 MW forest biomass to energy facility under California’s BioMAT program (also referred to as SB 1122) and an associated business campus at a former sawmill site located in Celestial Valley, near Camptonville, California.
The BioMAT program was signed into law in 2012. It is a California Public Utilities Commission program that sets electricity prices for small bioenergy projects. Please see the attached document prepared by TSS Consultants, Inc. for a summary of the program. Under the Category 3 Byproducts of Sustainable Forest Management, Pacific Gas & Electric Corporation must procure 47MW of electricity derived from sustainable forest management projects and activities. Any one project may not exceed 3MW in size. Eighty percent of a given project’s feedstock is required to be derived from sustainable forest
management projects. The remaining 20 percent of biomass may be sourced from urban/agricultural wood waste. The BioMAT program feed in tariff auction opened in January 2016.
CCP has been in operation since 1995 and has served as the project sponsor of the FBBC since 2013. CCP’s mission is “Rural people working together for a safe, sustainable and healthy community.” CCP is the only local organization capable of overcoming the many technical and organizational challenges nested within this complex facility's developmental process. CCP expects for the FBBC to catalyze landscape scale forest restoration, create local jobs, and improve the community’s social well-being, among other benefits.
RFQ for 3MW Forest Biomass to Energy Facility 2 team. Development teams may include facility operators but this is not a requirement of the RFQ. Those proponents who successfully respond to the RFQ and meet the qualification criteria will be invited to interview and discuss their response with the Steering Committee. Proponent’s responses will be made available to the local community for their evaluation and input. Following this, a candidate will be selected to negotiate an agreement with the CCP as project developer and, if applicable, operator.
PROJECT SUMMARY
The FBBC project goals as established by the Steering Committee and Camptonville community are: 1) to build a viable business model for biomass utilization; 2) create sustainable local employment; 3)
promote a fire safe community; 4) improve regional air quality; 5) enhance forest health; 6) produce renewable energy, and; 7) revitalize the former Celestial Valley mill site.
The FBBC is a combined heat and power model. A 3MW forest biomass to energy facility utilizing conventional direct combustion boiler steam turbine technology is planned within the 29-acre former Sierra Mountain Mill site located at 15576 Celestial Valley Road, Camptonville, California, 95922. Based on economic analyses, a qualitative evaluation and potential thermal sales, steam turbine generator technology was recommended by Black & Veatch as the preferred technology in the project’s feasibility study. One or more co-located businesses are intended for development alongside the bioenergy facility. The business(es) will utilize a portion of the waste heat and possibly electricity from the facility; the potential of on-site electricity sales is largely dependent upon the current proposed State Assembly Bill 1923.
The facility’s feedstock is expected to come from within an approximately 30 air mile radius (one hour drive time) of the project site and from a mix of private timber companies, federal timber contracts, small operators, and private non-industrial landowners. While only 80 percent of the project’s feedstock is required to be derived from sustainable forest management projects under the BioMAT program, the FBBC project aims to utilize 100 percent forest fuels from a mix of suppliers. Detailed feedstock information is available in the 2010 Yuba Foothill Biomass Feasibility Study which evaluated fuel supply within a 50-mile radius of the Teichert Aggregates facility located east of Marysville, 28 air miles from the project site. Fuel will not be supplied by the project landowner, however, an
experienced timber operator is expected to operate a log sorting yard on-site which will help to supply a reliable stream of material for the facility, if desired by the project developer.
The project site landowner is expected to issue a long-term lease to the bioenergy facility owner-operator. CCP intends to hold an equity position in the bioenergy facility and desires to work with the developer team on certain issues that directly pertain to the community’s environmental, social and economic interests. These issues will be identified and discussed during negotiations with the selected developer team. CCP is also exploring possible third party equity partners and invites the developer team to identify potential partners.
RFQ for 3MW Forest Biomass to Energy Facility 3 addition, CCP has funding for and is working to establish the bioenergy facility ownership model and to build capacity for local entrepreneurship for the co-located businesses. In order to get into the BioMAT program feed in tariff auction queue, a project must demonstrate site control, have completed its SIS, and have secured an experienced project developer. CCP has demonstrated site control and is completing the project’s System Impact Study; it currently seeks to secure a project developer or development team. Please refer to the project’s website for additional information and to download copies of background documents.
This RFQ is funded through a grant from the National Forest Foundation’s (NFF) Community Capacity Land Stewardship program which was awarded to CCP in March 2016. The NFF promotes the enhancement and public enjoyment of the 193-million acre National Forest System. By directly engaging Americans and leveraging private and public funding, the NFF improves forest health and Americans' outdoor experiences. The NFF's programs inform millions of Americans about the importance of these treasured landscapes. Each year, the NFF restores fish and wildlife habitat, plants trees in areas affected by fires, insects and disease, improves recreational opportunities, and enables communities to steward their National Forests and Grasslands.
REQUEST FOR QUALIFICATIONS
The objective of this RFQ is to solicit experienced renewable energy development and operations teams to describe their desired role in the development of the FBBC and to demonstrate their experience. This RFQ is a standalone piece which will be used to determine which respondents the Steering Committee will interview and discuss specifics about facility development and operations. Thereafter, the Steering Committee, in collaboration with the landowner, CCP, and local community, will select the bioenergy facility project developer/operator team who will negotiate an agreement with CCP.
This RFQ is intended for small-scale renewable energy project developer and operator teams who are interested in working with a community non-profit organization and private landowner to develop and potentially operate a 3 MW forest biomass to energy facility under California Public Utilities
Commission’s BioMAT program.
CCP will hold an optional site tour on Wednesday, August 17, 2016 at 1pm to view the project site and surrounding mill area, and to discuss the RFQ.
An electronic copy of each submission must be received by [email protected] before 5pm, on Friday, September 9, 2016. Responses should be clearly marked with the name and address of the respondent and contact person.
SERVICES
RFQ for 3MW Forest Biomass to Energy Facility 4 conversion technologies, at any size over 1 MW, and can be international experience (see CPUC Decision 12-05-035, Pages 69-70).
The Steering Committee will consider responses from teams to supply some or all of the potential responsibilities listed below. Note that facility operations is optional. Respondents are encouraged to include additional tasks that may have been unintentionally omitted as they see fit to ensure project success:
Conduct a fatal flaw analysis
Clean-up and improve site
Design and engineer facility
Prepare and acquire permits
Negotiate and complete a power purchase agreement
Procure equipment, including securing price and performance guarantees
Develop a detailed business and operating plan
Develop an investment fundraising plan
Negotiate, complete, and manage fuel supply contracts
Secure debt financing commitments
Secure renewable energy tax incentives
Secure New Market Tax Creditsi
Self-construct, or issue and manage an EPC contract for facility construction
Conduct project training and management
Operate, manage, and maintain the facility
Conduct marketing
Assist with development of the co-located business(es)
Negotiate, complete, and manage heat sales agreements
Conduct community outreach and engagement
In addition to addressing the above, respondents should describe their interest and capacity to hold an equity position in the bioenergy facility; any and all potential arrangements will be considered.
The affiliation of the respondent with other projects participating in the BioMat program should be described and any potential conflicts with the program rules pertaining to this affiliation should be described.
Respondents should describe their technology approach including whether or not they are vendor neutral or they would utilize specific manufacturers/equipment.
Please note that respondents are expected to participate in project fund development including all existing and future grants.
EVALUATION CRITERIA
Respondents will be evaluated by the project’s Steering Committee based upon:
Experience with similar types of small-scale bioenergy projects and combined heat and power projects.
Experience working with community groups.
Experience working with regulatory agencies, and acquiring and maintaining compliance with environmental permits.
RFQ for 3MW Forest Biomass to Energy Facility 5
Project approach that aligns with that of the Steering Committee, CCP, and community.
Proven capacity to develop and, if applicable, operate the proposed bioenergy facility.
Proven relationship with technology vendors including the ability to secure guaranteed
maximum price contracts for EPC, including performance guarantees and equipment warranties.
Knowledge of the BioMAT program.
Ability to effectively communicate and involve the landowner, CCP, and the Steering Committee, as appropriate.
SUBMISSION REQUIREMENTS
Respondents should submit the following:
1. A cover letter containing the name, title, address, telephone number, and e-mail address of individual(s) with the authority to interview with Steering Committee, negotiate and contractually bind the development and operations team.
2. A statement of interest.
3. Discussion of the respondents’ proposed role and responsibilities in the development and operation of the bioenergy facility, and the respondents’ approach to the above listed services, including any assumptions, expertise, special resources, methodologies, etc., and an estimated timeline for the completion of the project. If relevant, include any recommendations for additional items which should be added to the scope to ensure success.
4. List of members on the development team and resumes outlining their relevant experience, along with a description of similar bioenergy and combined heat and power projects completed by the team and the roles and responsibilities of the team members in those projects.
Respondents should describe each team members’ in house expertise and capacities, and detail any work that will be subcontracted out and the plan for doing so.
5. Respondents should provide their experience with small-scale direct combustion technology, community groups, combined heat and power projects, and BioMAT projects.
6. A minimum of three references from similar projects.
If respondents have questions or would like additional information, they should send inquiries to: [email protected]. All questions and responses will be published on the project website
(http://sites.theccp.org/fbbc/latest-news) and will be available to all interested parties. Requests for information must be received by Wednesday, August 24, 2016 and responses will be posted Monday, August 29, 2016.
CCP reserves all rights with regard to this solicitation, including but not limited to, revising this RFQ, rejecting all proposals, or any other action deemed to be in the best interest of CCP.
i While the project site is not depicted as eligible on the NTMC map of eligible census, CCP aims to qualify by