REPORT TO THE CITY COUNCIL
May 21, 2020
FROM: GREGORY A. BARFIELD, Director
Department of Transportation
BY: BRIAN BARR, Assistant Director
Department of Transportation
ORIE J. RUBALCAVA, Senior Management Analyst
Department of Transportation
SUBJECT
Title
Approve the consultant agreement with Element Markets, a Texas based Limited Liability Company, for the supply of Renewable Natural Gas and Management of Low Carbon Fuel Standard and Renewable Identification Number credits (Proposal No. 9509)
Body
RECOMMENDATION
Staff recommends Council approve the consultant agreement with Element Markets, a Texas based Limited Liability Company (LLC), for the supply of Renewable Natural Gas (RNG) and Management of (Low Carbon Fuel Standard (LCFS) and Renewable Identification Number (RIN) credits for the Department of Transportation/FAX Division.
EXECUTIVE SUMMARY
The United States federal government and the State of California have established fuel standard programs that permit organizations to accumulate carbon credits when using fuels in vehicles that reduce carbon emissions. These credits can be sold within the market exchange. The Department of Transportation/FAX Division seeks approval to award a professional consulting agreement for the management of LCFS and RIN credits. The consultant will be responsible for maintaining the RNG fuel pathway with the California Air Resource Board (CARB), keeping and reporting a record of quarterly and annual therms used in FAX operation, and monetizing credits for delivery of revenue to FAX. The revenue generated from this procurement is estimated at $300,000 per quarter and $1.2 million per year, subject to market conditions.
BACKGROUND
The United States federal government and the State of California have established fuel standard programs designed to lower greenhouse gas emission by reducing the full fuel-cycle carbon intensity of transportation fuels. The means and method this is achieved differs between...
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