HomeMy WebLinkAboutResolution 2018-151 N.C.S. 09/17/2018Resolution No. 2018-151 N.C.S.
of the City of Petaluma, California
AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT WITH BLUE SOURCE LLC FOR FUEL CREDIT
SERVICES FOR THE BIOMASS -TO -BIOFUELS PROJECT
WHEREAS, the City of Petaluma General Plan 2025 recognizes the importance of
reducing reliance on non-renewable energy sources, and encourages the use and development of
renewable or nontraditional sources of energy; and
WHEREAS, the City of Petaluma General Plan 2025 recognizes the importance of
reducing greenhouse gas emissions; and
WHEREAS, the City is implementing the Biomass-to-Biofuel (13213) project to use
methane gas produced at the Ellis Creek Water Recycling Facility (ECWRF) and turn it into
Compressed Natural Gas (CNG) to fuel the City's refuse vehicles; and
WHEREAS, the 13213 Project will modify the Ellis Creek Water Recycling Facility to
accept high strength waste from local food and beverage industries and will increase the
availability of biomethane; and
WHEREAS, the installation of gas scrubbing and compression equipment and a CNG
fueling facility will provide CNG fuel that can be used for City refuse and other vehicles; and
WHEREAS, converting City vehicles to CNG fuel will reduce greenhouse gas emissions
and reduce reliance on petroleum-based fuels; and
WHEREAS, by converting biogas to transportation fuel, the City will produce low
carbon transportation fuels and will be eligible to register with the California Low Carbon Fuel
Standard (LCFS) program and generate environmental credits that have a monetary value; and
WHEREAS, by producing low carbon transportation fuels, the City will be eligible to
register with the federal Renewable Fuel Standard (RFS2) program and produce credits
(Renewable Identification Numbers, or RIMS), under the D5, Advanced Biofuel standard, and
D3, Cellulosic Biofuel standard; and
WHEREAS, the environmental credits generated through the LCFS and RFS2 programs
have a monetary value that can be sold to obligated parties, and the revenues can be used to
offset operations and maintenance costs of the 13213 project; and
WHEREAS, the City requires the assistance of a consultant with detailed knowledge in
the federal and state alternative fuel credit programs in order to capitalize on LCFS and RFS2
credits; and
WHEREAS, the City conducted a competitive process to select a consultant to provide
fuel credit services, including registration, quality assurance, training, and marketing and
monetization of fuel credits; and
Resolution No. 2018-151 N.C.S. Page 1
WHEREAS, Blue Source LLC of Salt Lake City, Utah, submitted a comprehensive and
complete proposal, considered to be fair and reasonable, and has the knowledge and expertise to
perform the requisite services; and
WHEREAS, the proposal submitted by Blue Source LLC maximizes fuel credit revenues
while minimizing City resources for administration of the fuel credit program.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby authorizes the City Manager to Execute a Professional Services Agreement to
Blue Source LLC for a total authorized contract amount for Phase 1 services of $120,000 for
registration, third -party engineering, QAP services and required audits. Upon amendment of the
PSA for Phase 2 services an additional $47,000 will be authorized for marketing, and
monetization of fuel credits. Registration, third -party engineering, quality assurance services and
required audits are to be billed on a time and material basis as estimated in the attached PSA. In
addition, for marketing and monetization of fuel credits, Blue Source will be compensated 7.5
percent of LCFS credit revenues, 7.5 percent of D5 RINS revenues, and 12.5 percent of D3
RINS revenues.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the /pprav as to
Council of the City of Petaluma at a Regular meeting on the 171h day of September forrrl:
2018, by the following vote:
City At'�orney
AYES: Albertson, Barrett, Mayor Glass, Vice Mayor Healy, Kearney, King, Miller 1
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
City Clerk
Mayor
Resolution No. 2018-151 N.C.S. Page 2