Renewable Natural Gas Supplier

The City of Long Beach, through its Energy Resources Department, is soliciting proposals to supply Renewable Natural Gas for use as vehicle fuel to three locations within its utility service territory under RFP ER-22-173, with proposals due February 13, 2023 at 11:00 AM Pacific Standard Time per Addendum No. 2.

The City seeks 100% of natural gas demand across three facilities: Long Beach Transit (162,000 MMBtu annually), City Fleet Services (56,000 MMBtu annually), and a City Fueling Station (85,000 MMBtu annually), totaling 303,000 MMBtu per year. The supplier must deliver RNG into the Southern California Gas Company pipeline system and manage federal Renewable Identification Numbers and state Low Carbon Fuel Standards credits, with revenue from these credits shared on a percentage basis with the City. Addendum 3 clarifies that the City accepts both physically delivered RNG and traditional natural gas molecules coupled with environmental attributes via a "book and claim" approach. While SB 1383-compliant RNG is preferred, the City acknowledges its scarcity and is open to alternative RNG feedstocks and fixed-price structures. Suppliers must provide monthly pricing for RNG per MMBtu based on Natural Gas Intelligence bidweek average index prices, including any proposed premiums or discounts. The supplier shall manage and balance RNG supply without charge to the City and absorb any charges or penalties incurred by the City related to RNG delivery.

Minimum qualifications include three years of proven RNG supplier experience, understanding of federal and state regulations, and knowledge of natural gas nomination and delivery into the SoCalGas system. Proposers must provide five professional references detailing similar projects and documentation of Long Beach-based employees. Proposers using subcontractors must include California Department of Industrial Relations registration status and equivalent documentation for each subcontractor.

The contract term is two years with options to renew for three additional one-year periods, not to exceed five years total. Contract award is anticipated for March–April 2023, with estimated execution in April–May 2023. Evaluation criteria focus on organizational capacity and experience, method of approach, communications and reporting capabilities, and cost reasonableness. Questions were due January 30, 2023 by 11:00 AM Pacific Standard Time, with Q&A posted by 4:00 PM Pacific Standard Time the same day per Addendum 1. Proposers must acknowledge receipt of all addenda by signing and submitting them with proposals; failure to do so may result in disqualification. Bidders must certify compliance with the City's Equal Benefits Ordinance for contracts valued at $100,000 or more and provide California Secretary of State Business Search certification demonstrating proper registration and good standing.