RP-5 Renewable Energy Efficiency Project (REEP)

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RP-5 Renewable Energy Efficiency Project (REEP) ( rp-5-renewable-energy-efficiency-project-reep )

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Water & Infrastructure, Inc. and the Agency’s Engineering, Energy & Construction Management (EE&CM) Department overcame many unforeseen obstacles, and was able to maintain the project schedule on track with minimal delays. Some major challenges are summarized below: Energy analysis of six (6) engine generator configurations to select the best option for the project considering reliability, performance and payback Interconnecting agreement with local utility power company, Southern California Edison (SCE) o Stringent regulation o Repeated design drawing reviews o Numerous site visits o Strict relay settings with a very narrow margin Natural gas supply agreement with the local utility gas company, Southern California Gas Company o Early start and negotiation was required oContinuous correspondence and communications for complex requirements and timely installation(s) Permit to construct and operate from South Coast Air Quality Management District (SCAQMD) o Constant & continuous communication via telephone, emails, applications, and reports o According to the SCAQMD’s definitions, the RP-5 Facility is considered a Title V facility, and therefore abides by the most stringent air quality regulations o Despite early coordination and application submittal, permitting language problems and issues arose requiring permit modifications o Project commissioning and startup was suspended due to ambiguity in the “gas cleaning system” described in the Permit to Operate issued by SCAQMD o The Agency is working with SCAQMD to modify the permit to correct the “gas cleaning system” description o Modifying a Title V Permit is an extensive task requiring approximately 6-8 weeks Delayed equipment delivery o Hurricanes Katrina and Rita shifted resources and efforts to the devastated areas; thus, affecting equipment/material delivery o The war in Iraq shifted power resources; thus effecting generating equipment delivery Material prices increased at unprecedented levels Rejection of the first project bid due to inconsistent and unrealistic pricing Re-bid and division of the project bid into thirteen bid packages o Resulted in about $2M cost savings o Eliminating the General Contractor role by self performing the project construction phase by the Agency for cost savings o Project construction became more difficult to manage and execute Page 10 of 18

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