Biofuel_-_Alt_Fuel_attachments_5_-_8.pdf

Attachment 5

EVALUATION OF OFFERS for BIOFUEL BLENDS

Application of the Biofuel Production Incentive (BPI) Evaluation Factor to F76 and JP-5

A Biofuel Production Incentive (BPI) evaluation factor will be applied to offers to supply F76 or JP5 containing a minimum of 10% and a maximum of 50% blended biofuel as permitted by specifications MIL-DTL-16884N and MIL-DTL-5624 respectively, and using a qualified feedstock or feedstocks listed in Attachment 6 to produce the biofuel used in the blended product. The BPI evaluation factor will be provided via Amendment to this solicitation. The BPI will be applied by subtracting that amount from an offeror’s price for evaluation purposes only.

Small business set-aside match pricing will be determined by the Bulk Fuels Bid Evaluation Model (BEM) award pattern that includes the BPI evaluation factor for qualified small business offers ONLY. Any quantities designated for award to a small business under the Small Business Set-Aside price matching portion of the portion of the evaluation will be excluded from further consideration. The BPI evaluation factor will then be applied to all qualified offers and the BEM will be used to determine the award pattern. If the resulting award pattern yields a successful offeror evaluated with the BPI applied, the BPI will be removed from all offers and the BEM will be used to determine the price that the Government would otherwise pay for fuel for each location in the solicitation, while preserving previously identified small business set-aside award quantities.

For each quantity awarded that contains a BPI evaluation factor, the awarded price will be the offered price, which will be split into two contract line items. The first line item will be the price that DLA Energy would otherwise pay, based on the award pattern determined in the BEM run without the BPI included. The second line item will be the difference between that price and the offered price, and will represent the actual amount of the BPI to be paid by the Commodity Credit Corporation (CCC).

This BPI will be firm and fixed for the life of the contract; it will not escalate based on any market index.

$66,368,750 of CCC funds are available to support awards made to offerors eligible for the biofuel production incentive. The award pattern determined by the BEM will be reviewed to ensure that potential awards that include the BPI do not exceed the total available CCC funds. Actual award quantities will be restricted to meet CCC funding limitations.

The BPI is not an additional sum to be paid to an offeror over and above the offered price. The BPI will be applied as an evaluation factor as described above to determine if any award will be made for biofuel blends. After the award decision is made, the actual amount of the BPI to be paid by the CCC will be separately calculated and covers the portion of the total offered price, which exceeds the price the Government would otherwise pay. In no event will an offeror be paid a price higher than its offered price.

In the event of a tie between two or more equally evaluated offers, award will be made to the offeror with the highest biofuel content.

Attachment 6

Feedstocks Eligible for CCC Funding Use with the DPA Initiative and Farm to Fleet Program Revision Date: June 4, 2014

1. The following commodities are acceptable to the Department of Agriculture (USDA) for the DPA

Initiative and Farm to Fleet Program for the use of CCC funds.

• Annual cover crops/oil produced from these cover crops (will likely need to be approved by EPA on case by case basis)

• Camelina/camelina oil

• Non-food grade corn oil

• Algae/ Algal Oil

• Canola/Rapeseed oil

• Cellulosic Biomass from crop residues/crop residues (i.e., stover, wheat straw, rice straw, etc.)

• Slash, pre-commercial thinnings and tree residue, forest residues

• Mill residues/waste

• Switchgrass

• Miscanthus

• Jatropha

• Energy cane

• Hybrid Poplars

• Shrub willows

• Agricultural residues such as rice hulls, nut shells

• Animal waste and by-products of animal waste including fats, oils, greases (not recycled)

• Sorghum/sorghum oil (non-food grade)

• Sorghum, Biomass

• Sorghum, Energy

• Sunflower oil

• Safflower oil

• Pennycress

• Eucalyptus

• "or other agricultural product approved by CCC"

2. The following is a list of feedstocks that are not eligible for CCC funding, but may or may not be approved by the EPA for biofuels production. The list includes:

• Food waste

• Yard waste

• Municipal solid waste

Attachment 7

Section 526 Technical Requirement

The Lifecycle greenhouse gas emissions associated with the production and combustion of the fuel supplied under contracts awarded for this solicitation must, on an ongoing basis, be less than or equal to such emissions from the equivalent conventional fuel produced from conventional petroleum sources.

A successful offeror shall also demonstrate through sufficient documentation prior to award their ability to comply with the above requirement found in section 526 of the Energy and Independence and Security Act (EISA) of 2007.

EISA §526 states: "No Federal agency shall enter into a contract for procurement of an alternative or synthetic fuel, including a fuel produced from nonconventional petroleum sources, for any mobility-related use, other than for research or testing, unless the contract specifies that the lifecycle greenhouse gas emissions associated with the production and combustion of the fuel supplied under the contract must, on an ongoing basis, be less than or equal to such emissions from the equivalent conventional fuel produced from conventional petroleum sources."

Values for lifecycle greenhouse gas emissions of conventional fuel shall be those calculated in the report authored by the National Energy Technology Laboratory titled “Development of Baseline Data and Analysis of Life Cycle Greenhouse Gas Emissions of Petroleum-Based Fuels” dated November 26, 2008. http://www.netl.doe.gov/energy-analyses/pubs/NETL%20LCA%20Petroleum- Based%20Fuels%20Nov%202008.pdf

• A value of 90 gCO2e/MJ shall be used for F-76

• A value of 87.5 gCO2e/MJ shall be used for JP-5

Methods which may be used to determine the lifecycle greenhouse gas emissions of an alternative or synthetic fuel relative to that of the equivalent conventional fuel are:

1. The pathway consisting of the feedstock, conversion process and finished fuel is listed in Table 1 to 40 CFR 80.1426, or the Environmental Protection Agency has approved a petition for use of a D code pursuant to § 80.1416

2. Performing the lifecycle greenhouse gas calculation using the Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Model by Argonne National Laboratory (http://greet.es.anl.gov/) in accordance with the methodology found in the “Framework and Guidance for Estimating Greenhouse Gas Footprints of Aviation Fuels” dated April, 2009.

http://oai.dtic.mil/oai/oai?verb=getRecord&metadataPrefix=html&identifier=ADA513106

• In the case that multiple products are produced from offeror’s process, co-product allocation shall be performed in accordance with GREET default methods.

• The offeror shall identify the type of land where the offeror’s feedstock is grown and the original use of the land before growing the feedstock. Indirect land use change from growing the feedstock will not be accounted for because of the nature of its great uncertainties.

• Sufficient documentation of key input parameters specific to the offeror’s technology pathways for GREET inputs demonstrating lifecycle greenhouse gas calculations, shall be prepared in accordance with “Framework and http://www.netl.doe.gov/energy-analyses/pubs/NETL%20LCA%20Petroleum-Based%20Fuels%20Nov%202008.pdf http://www.netl.doe.gov/energy-analyses/pubs/NETL%20LCA%20Petroleum-Based%20Fuels%20Nov%202008.pdf http://greet.es.anl.gov/ http://oai.dtic.mil/oai/oai?verb=getRecord&metadataPrefix=html&identifier=ADA513106

Attachment 7

Guidance for Estimating Greenhouse Gas Footprints of Aviation Fuels” and shall be submitted with the offer for evaluation

If during the performance period of the contract the contractor alters the alternative or synthetic fuel production pathway, in terms of feedstock and/or conversion process, then sufficient documentation shall be provided in advance to ensure compliance is maintained with the above lifecycle greenhouse gas requirement.

Failure to meet the requirements of Section 526 of the EISA of 2007 will make the offer unacceptable and ineligible for award.

Attachment 8

Terms Applicable to Biofuel/Alternative Fuel Blend Contract Line Items

A. Contractors providing biofuel or alternative fuel blend offers agree to the following terms and conditions:

1. Each gallon of biofuel/alternative fuel blend must contain the agreed upon minimum percentage by volume of biofuel/alternative fuel. Contractor shall not vary the amount of the biofuel/alternative fuel content per gallon over the life of the contract.

2. Each gallon of biofuel/alternative fuel must be produced using only the feedstock(s) identified in the contract.

3. Each gallon of biofuel/alternative fuel must be produced using the pathway and process identified in the contract.

B. If the contractor wants to provide fuel produced from a feedstock or using a pathway or process not identified in the contract, then the contractor must obtain the express written approval of the Contracting Officer. Contractor shall submit a request in writing identifying the new feedstock, pathway or process, to be used and the reasons for the change. Contractor shall provide the Contracting Officer with any other additional information requested, including information demonstrating that the biofuel/alternative fuel meets Section 526.

C. For all biofuel/alternative fuel blends expressly identified and supplied under the contract, the lifecycle greenhouse gas emissions of the biofuel/alternative fuel component must be less than or equal to the lifecycle greenhouse gas emission of fuel produced from conventional petroleum sources as required by Section 526 of the Energy Independence and Security Act, 42 U.S.C.A. § 17142.

D. At its discretion, the Government may request supporting documents such as invoices or receipts demonstrating that contractor has purchased or otherwise obtained sufficient biofuel/alternative fuel to fulfill the requirements of its contract. The Government may also test the fuel for biofuel content using ASTM D 6866 – “Standard Test Method for Determining the Biobased Content of Solid, Liquid, and Gaseous Samples Using Radiocarbon Analysis” or may test using any other reasonable techniques.

Alternative I. Add the following to the basic clause if the contractor will be receiving a biofuel production incentive under the Commodity Credit Corporation (CCC) program.

E. If the contractor is awarded a contract as a result of the biofuels production incentive evaluation factor, the contractor’s price per gallon will be allocated across two line items. The first line item will represent the competitive petroleum price and the second line item will represent the biofuels production incentive.

F. The contractor’s right to payment of the biofuel production incentive is dependent on the feedstock and percentage of the biofuel content as agreed to in this contract. The biofuel component must be produced from a domestic feedstock approved by the CCC. The biofuel blend must contain the minimum agreed upon biofuel content. In the event that the contractor delivers fuel that is produced from ineligible feedstocks or contains less than the minimum required biofuel content, the contractor will not be entitled to payment for the biofuel production incentive for those gallons. The contractor will not be paid a higher biofuel production incentive in the event that the contractor delivers fuel that exceeds the minimum biofuel content. The amount of the biofuel production incentive will be fixed for

Attachment 8 the life of the contract and not be subject to an economic price adjustment. The biofuel production incentive is authorized only up to the total amount obligated on the contract for that line item.

G. DLA Energy is not responsible for payment of the biofuel production incentive. The contractor is required to split bill the CCC separately for the biofuels production incentive.