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Authorize Issuance of Purchase Order to CCI BioEnergy, Inc., (CCI) in Amount of Approximately $2,751,324 for Organic Waste Polishing System (Polisher) at Puente Hills Materials Recovery Facility (PHMRF)
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Summary: Senate Bill 1383 is driving increased demand for organic waste processing capacity throughout Los Angeles County. Approximately $4,200,000 in CalRecycle grant funding became available when another grantee was unable to use the funds. CalRecycle offered the funding to existing grantees through an accelerated competitive process. The Districts submitted a proposal to expand the organic waste processing capabilities at the PHMRF. The Districts’ proposal was selected to receive the funding. Staff recommends issuing a purchase order to CCI for a Polisher that will expand the Districts’ capacity to process a wider range of organic material for beneficial use at the A.K. Warren Water Resource Facility (Warren Facility). The project will enable diversion of an additional 30,000 - 60,000 tons of organic material per year from landfills, supporting SB 1383 compliance and increasing renewable natural gas production at the Warren Facility. The purchase order expense will be reimbursed by the awarded funds from CalRecycle. Staff has determined that the project is exempt or otherwise not subject to the provisions of the California Environmental Quality Act (CEQA) pursuant to California Public Resources Code Section 21084 and Title 14 of the California Code of Regulations (“CEQA Guidelines”) Sections 15301 and 15303. This item is consistent with the Districts’ Guiding Principles to protect financial and facility assets through prudent investment and maintenance programs; and commitment to operational excellence (protection of public health and the environment, regulatory compliance, and cost effectiveness).