Landfill Gas Utilization Project

The City of Tucson (COT), Environmental & General Services Department (EGSD), is issuing this Solicitation for experienced, qualified, fully integrated, multi-discipline Offerors, firm(s) to develop capital and operational investment options, install, and maintain equipment to clean the landfill gas (LFG) generated at the Los Reales Sustainability Campus (LRSC), located at 5300 E. Los Reales Rd, Tucson, AZ to pipeline grade standards and market the gas as a renewable natural gas (RNG) product, including the environmental attributes. In 1967, the LRLF began accepting municipal solid waste (MSW) and construction and demolition waste and today the waste volume is estimated at 22,000,000 tons of MSW. The site currently receives approximately 700,000 tons per year of waste from several service areas. The LRSC is comprised of approximately 1,087 acres. The existing waste disposal footprint consists of approximately 183 acres of unlined landfill area, 80 acres of current lined landfill and 160 acres of proposed expansion lined landfill area. Adjacent expansion areas developed will ultimately "piggyback" onto the current waste disposal mound to form a continuous waste mass. Previously, LFG collected from LRSC was transported via an underground pipeline to the Tucson Electric Power (TEP), H. Wilson Sundt Generating Station, where it was used as a supplementary fuel for steam generating units for electrical power generation. Transportation of the LFG to TEP was discontinued in November 2019, since then, the LFG has been flared. The current Gas Collection and Control System (GCCS) consists of 119 vertical LFG extraction wells of which 33 are active. The wells are connected, via a network of high-density polyethylene (HDPE) lateral and header piping, to the LFG compressor and candlestick flare systems. The flare system is a candle stick flare manufactured by John Zink, Model ZEF 1030 and has a maximum capacity of 2,600 standard cubic feet per minute (scfm) capacity. The blower system utilizes two Lamson direct drive gas blowers rated at a flow rate of 1,345 scfm each (40 Hp each). Recently, at the City’s request, GHD Consultants completed a Landfill Gas Recovery and Reutilization Feasibility Assessment, included as an Attachment to this Solicitation. A number of strategic drivers and objectives were evaluated as a part of the study which included, but not limited to, landfill gas (LFG) production, environmentally beneficial end use for the LFG, economic and fiscal impacts, technology options, and the City’s long-term sustainability and climate action goals including those outlined in Resolution 23222. The study’s final recommendation for LFG utilization included: Expansion of the GCCS system to capture 2,400 scfm with the possibility of future system expansion(s) Construction of an LFG to RNG Processing Facility Construction of a transfer pipeline and injection station to inject RNG to Kinder Morgan natural gas line COT to enter into contractual offtake agreements, facilitated by the local utility, to credit RNG produced at the facility to fuel its CNG fleet. Excess RNG above COT’s fleet demands to be sold to other transportation users connected to SWG’s network . The qualified firm or team selected through this solicitation, will be tasked to evaluate GHD’s assessment/recommendations and propose the most environmentally beneficial end use for the LFG, while considering economic and fiscal impacts, technology options, associated capital and operating costs, regulatory requirements and gas quality and production. COT is seeking responses based on GHD’s recommendation to construct an LFG utilization system as noted. However, the City will consider LFG reutilization alternatives that results in improvements to health and environmental impacts, and which present a financial benefit to the City. The intent of this Solicitation for the Landfill Gas Utilization Project (LGUP) is to select a qualified and competent Offeror to contract with the City of Tucson to reduce the environmental impacts and maximize the value and utilization of the LFG generated by the landfill. The City of Tucson desires to utilize this resource to achieve the following objectives: Reduce greenhouse emissions by offsetting the usage of fossil fuels while maximizing its environmental attributes as measured by the generation of verified RINS; Create an environment where there is a potential for the creation of local jobs; and Generate revenue and reduce operational costs to reduce the overall revenue requirements of the COT-Environmental Services Fund The City of Tucson recognizes its ability to operate and maintain the LFG collection system and has the motivation to improve the environmental impacts of its operations. The City of Tucson is issuing this Solicitation to select an Offeror for the permitting, licensing and develop of investment options and partnerships to install, maintain and operate a LFG cleaning system with the purpose to convert raw landfill gas to renewable natural gas which meets pipeline gas quality standards that will be injected into the natural gas network to be used by the City of Tucson as a transportation fuel and for any excess RNG be sold in the open market while maximizing the value of the environmental attributes. The selected Offeror will be working with City of Tucson staff, contractors, pipeline owners, utility companies, regulatory agencies and other program consultants. The City of Tucson recognizes that the selected Offeror may be assuming the risk of investment in which a return for this risk is expected. The City of Tucson will evaluate proposals to ensure that the maximum value of the LFG’s physical and environmental attributes is attained while maximizing the social and environmental benefits that this project can bring to the City of Tucson. This RFQ invites Offerors to submit SOQs describing in detail their technical and financial qualifications to perform the requested services. The issuance of this RFQ is the first step in a two-step procurement process. ONLY THOSE FIRMS THAT RESPOND TO THIS RFQ AND ARE SHORT-LISTED BY THE EVALUATION COMMITTEE IN ACCORDANCE WITH THE REQUIREMENTS OF THIS RFQ, WILL BE ISSUED A REQUEST FOR PROPOSAL (RFP) AND INVITED TO SUBMIT A PROPOSAL IN RESPONSE TO THE RFP (STEP 2). UP TO THREE (3) FIRMS WILL BE SHORT-LISTED AS ELIGIBLE TO PARTICIPATE IN THE RFP STAGE OF THIS PROCUREMENT. By utilizing this approach, the City expects to secure substantial benefits for its taxpayers and customers. These benefits include aggressive project design and construction scheduling, optimal risk allocation, competitive design selection, clear assignment of performance responsibilities, long-term facility operations and maintenance efficiencies, optimal revenue sharing and cost savings. Other expected benefits include the full integration of key design, construction, operations, maintenance and quality assurance personnel in all aspects of the Complex development. City's intent in developing this RFQ and the subsequent RFP is to encourage qualified firms to provide the best innovative solution in accordance with the requirements of this RFQ and the subsequent RFP. The technical requirements for the Complex will be presented in the RFP. The presentation of technical requirements in this RFQ is for general understanding only, and is not necessarily indicative of RFP requirements.