May 25, Request for Proposals No Offsite Virtual Net Metering

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1 May 25, 2018 Request for Proposals No Offsite Virtual Net Metering

2 I. Introduction The Rhode Island Airport Corporation (RIAC) seeks proposals from qualified enterprises to provide offsite virtual net metering through which any net metering credits will accrue to the benefit of RIAC (the RFP). Respondents are free to propose any development model that satisfies the requirements of chapter 26.4 of title 39 of the Rhode Island General Laws. Respondents will have sole responsibility for planning, permitting, designing, installing, financing, operating, and maintaining the virtual net metering system. II. General Background RIAC manages the State of Rhode Island s six airports and is a subsidiary of the Rhode Island Commerce Corporation (CommerceRI). RIAC was created on December 9, 1992, as a subsidiary public corporation, governmental agency, and public instrumentality having a distinct legal existence from CommerceRI and the State. RIAC assumed responsibility for the State s six airports on July 1, The powers of RIAC are vested in a seven-member Board of Directors that is authorized, pursuant to its Articles of Incorporation and the Lease and Operating Agreement among the State of Rhode Island, the Rhode Island Department of Transportation, and RIAC, dated as of June 25, 1993, to undertake the planning, development, management, and operation of the six airports T.F. Green State Airport, North Central State Airport, Newport State Airport, Block Island State Airport, Quonset State Airport, and Westerly State Airport. Chapter 26.4 of title 39 of the Rhode Island General Laws governs net metering of renewable energy in the State of Rhode Island and allows a public entity, defined by R.I. Gen. Laws (12), to net meter from remote renewable energy resources. As a public entity, RIAC seeks proposals from qualified enterprises to develop renewable energy generating system(s) that may, in accordance with the public entity net metering financing arrangements defined in R.I. Gen. Laws (7), virtually net meter to existing RIAC electric accounts. Chapter 26.4 of title 39 of the Rhode Island General Laws also governs the size of eligible net metering facilities and the amount of net metering credits that a customer may claim. For purposes of this RFP, RIAC is seeking projects that can provide net metering credits for its multiple electric accounts that are eligible for net metering credits for between 17 million and 18 million kwh of electricity per year. III. Proposal Details RIAC seeks proposals from qualified enterprises to develop one or more renewable energy generating system(s) that will virtually net meter to existing RIAC electric accounts. RIAC intends to use, through virtual net metering, the electricity generated by eligible net metering systems to reduce its electric costs and obtain electric price stability. The maximum size of a proposed renewable energy net metering system under R.I. Gen. Laws, chapter is 10MW AC nameplate capacity. Respondents may submit more than one proposal. RIAC may move forward with more than one proposal if economically beneficial, or it 1

3 may not move forward with any proposals if they are not in RIAC s best interests. In designing the proposals, Respondents must demonstrate that they can achieve the following goals: 1. The proposal must not exceed the estimated amount of electricity used by RIAC on an annual basis; 2. The proposal shall not utilize RIAC-owned properties; 3. The proposal must result in a Net Metering Credit that is never less than zero ($0), with no downside risk to RIAC over the term of the agreement; 4. The proposal must maximize the Net Metering Credits for RIAC to the extent allowed under RIGL to reduce overall utility costs; 5. Respondents must be able to secure all rights, permits, approvals, and agreements with all local, state, federal, and any other required entities; 6. The proposal must deliver Net Metering Credits beginning as soon as practicable after the contract; and 7. The proposal shall not result in upfront or run-rate costs incurred by RIAC. Through this solicitation, RIAC seeks the lowest price for Rhode Island-based renewable electricity in units of $/kwh. The generated electricity will be virtually net metered against RIAC s electric accounts. The proposed development may be part of a public entity net metering financing arrangement as allowed by R.I. Gen. Laws (14). Proposals must address how the proposed net-metering system will Utilize or not utilize Renewable Energy Credits; Utilize or not utilize Production Tax Credits for Renewable Energy; Utilize or not utilize distributed generation (DG) contracts; Utilize or not utilize available grant funds; Assure compliance with all applicable sections of chapter 26.4 of title 39 if the R.I. Gen. Laws; Interconnect to the local grid; Comply with any other required issues, including storm water permitting, renewable resource certification, etc. Respondents are responsible for all aspects of the project, including permitting, site acquisition, site development, construction and installation, interconnection to the local grid, and securing all certifications and ongoing operations and maintenance, if applicable. IV. Submittal Criteria Respondents shall provide a written description indicating the proposed approach to the project. The scope of work should contain sufficient detail on methods and procedures to be employed to clearly define how Respondent will complete work tasks. RIAC encourages Respondents to provide specific examples of how similar methods may have been used on other successful projects. Proposed projects that are specific and highly developable are preferred. 2

4 The proposal shall include the following items to assist in the evaluation: 1. Project Description Describe the type of renewable energy system proposed, including the renewable energy resource utilized (wind, solar, hydroelectric, etc.), nameplate capacity (AC and DC), and estimated capacity factor. The description also should include the projected monthly MWh output for the proposed site(s). The description should include details about the technology (ground mount, wind, rooftop) product components, including, but not limited to type of solar panels/wind turbines, inverters, and generation and product warranty information. The description also should include specifics regarding annual degradation factor, production estimate methodology, and project life. 2. Project Location Identify the proposed project location, including proximity to the local grid and ability of the local grid to accept the generated power. The project must be located on property not owned by RIAC. Identify whether Respondent has site control, and if so, describe the form of site control (letter of intent, land lease, purchase option). 3. Project costs Provide an estimate of the total costs of this project, including, but not limited to the cost of system design, installation, all applicable permitting and certification costs, and grid interconnection costs. 4. Project Timeline Provide a detailed schedule for project implementation at the proposed site(s), including system design, property acquisition as applicable, permitting construction/installation, grid interconnection completion date, impact study date, construction start date, commercial operation date, and the date on which the project will begin delivering Net Metering Credits. Pre-application reports must be submitted where applicable. 5. Project Benefit Describe the compensation (via a Net Metering Credit) that will accrue to the benefit of RIAC. Provide a monthly pro forma for the first three (3) years. Under no circumstances shall the monthly Net Metering Credit be less than $0. The description of the Project Benefit shall include an example of how the Net Metering Credit will appear on RIAC s electricity bills and describe the mechanics for payment to both Respondent and The Narragansett Electric Company d/b/a National Grid. Include the final cost of the project to RIAC for electricity supplied, calculated over the life of the project. Projects should specifically include both Fixed Price (PPA) options and NMC Discount Rate options for both 20 and 25 year terms, listing escalators, if applicable, on each. Proposals can provide: 3

5 A. The price per kwh to RIAC of Net Metering Credits to be provided to RIAC for the electricity generated by the project; and/or B. The percentage of each Net Metering Credit generated by the project that the Respondent proposes to keep as payment for the Net Metering Credit, in which case the proposal must include a description of the methodology that the Respondent uses to calculate the value of the Net Metering Credits. C. Respondents are encouraged to propose an annual minimum Net Metering Credit All proposals must include Respondent s best price to RIAC in $/kwh and/or percentage of Net Metering Credit for the renewable electricity over the life of the project, as well as a promised amount of renewable generation annually. The best price also must be expressed as a fixed price for ease of comparing proposals. 6. Project Oversight Describe how RIAC will be able to monitor performance of the proposed site(s), the system as a whole, and compliance with the terms of any agreement entered into between Respondent and RIAC. 7. Project Financing Describe in detail how Respondent plans to finance the project, including the availability of capital resources. Respondents should describe their bonding capacity as it relates to performance. Respondents shall not expect or include any capital outlay from RIAC. 8. Performance Guarantee(s) Describe all performance guarantees Respondent will provide to RIAC throughout the term of the agreement, including but not limited to any Energy Performance Guarantees, Energy Production Guarantees, and not-to-exceed Degradation Guarantees. 9. Sample Contracts Provide all sample contracts/agreements that Respondent would request that RIAC sign in connection with the proposal. 4

6 V. Experience and Qualifications Each proposal shall include the following information to permit RIAC to evaluate the qualifications of Respondents: 1. Personnel information, including the following: Contact person authorized to respond to questions and provide clarifications, including his or her telephone and fax numbers and address; List of all individuals who will be dedicated to the project, along with contact information and each individual s role and responsibilities; Specification of Development Team, in-house vs. subcontracted; Specification of EPC Contractors, in-house vs. subcontracted; Organizational chart; and List of past projects the individuals have worked on together. 2. Description of Respondent s qualifications and experience developing similar projects. Respondent shall demonstrate past experience in developing renewable energy projects, including virtual net-metering projects. Respondent shall demonstrate the technical experience and capability to fully finance, design, build, and operate large-scale renewable energy grid-connected projects in Rhode Island. 3. Description of Respondent s resources (financial and logistical) to successfully complete the project. 4. Description of all projects similar in scope and design completed in the past five years. Each project description must include the following information: Project name; Location; Project size (total cost and project capacity in kw DC); Project type turnkey or third party energy sales; Month and year completed; Name of Project Manager and all staff who participated in the projects, along with their roles; Name and phone number of client contact with personal knowledge of the project; Brief physical description of the project (equipment manufacturer, model, etc.); and Brief discussion of any specific challenges and how they were overcome. Respondents have a continuing obligation to disclose information throughout the RFP process should any qualifications or situations change that might render Respondents unqualified. 5

7 VI. Evaluation Criteria The RIAC Selection Committee will evaluate proposals to determine which, if any, Respondents have the capabilities to provide the required services to RIAC s satisfaction. The Selection Committee will consider the criteria identified below. 1. Proposal approach 2. Project Benefit 3. Project feasibility 4. Project schedule 5. Project detail and financing 6. Respondent s experience and qualifications 7. Performance guarantee(s) and contract(s). RIAC has the right to accept or reject any and all submissions. Successful proposals may be required to provide additional information and submittals. Proposals that contain false or misleading statements or that provide references that do not support an attribute or condition claimed by Respondent may be rejected. VII. Submittal Requirements RIAC requires Respondents to keep the proposal to a maximum of twenty (20) 8½ x 11 singlesided pages using no less than 12-point font, excluding: Executive summary (which should not exceed one page) Table of contents Resumes of all project personnel (each resume should not exceed one single side page) References Sample contract agreement(s) Respondents shall submit one electronic (Thumb/Flash Drive accepted only) and six (6) printed copies of the proposal to: Office of Procurement Rhode Island Airport Corporation T. F. Green Airport 2000 Post Road, 3 rd Floor Warwick, RI Attn: Contract No The proposal must be submitted no later than 2:00PM, July 13, Late submissions will not be accepted. 6

8 VIII. Instructions and Notifications to Respondents 1. A pre-proposal meeting will be held on June 5, 2018, at T.F. Green Airport. This meeting will begin at 8:00 am, and you must report to the 3 rd floor (reception) of the terminal building by 7:45 am. If you are unable to attend in person, RIAC can provide you a call-in number for the meeting. To request the number and password, please with the following information for the person participating no later than 4:00 pm May 30, 2018: Name Phone number Company name 2. Any and all written questions regarding this Request for Proposals (RFP) must be submitted by to no later than 4:00M EDT, June 12, RIAC will respond to all relevant questions no later than end of day on June 19, 2018, via an addendum. This addendum will be posted to RIAC s website ( and the State of Rhode Island s Division of Purchasing website ( Respondents shall not make any personal contact with any member of RIAC staff or Board of Directors regarding this RFP. Failure to adhere to this requirement may result in Respondent s disqualification from consideration. 3. RIAC accepts no financial responsibility for any costs incurred by Respondents in responding to this RFP, participating in oral presentations, or meeting with RIAC prior to any award of a contract. Any proposal submitted becomes the property of RIAC and may be used by RIAC in any way it deems appropriate. By submitting a proposal, Respondents certify that they have fully read and understand the RFP, have full knowledge of the scope of work requested, and accept the terms and conditions under which the services are to be performed. 4. RIAC reserves the right to interview some, all, or none of Respondents based solely on its judgment. RIAC reserves the right to reject any and all submittals, to request and consider additional information from submitters, and to reject any and all submittals on any basis without disclosing the reason. No firm may withdraw their submittal for at least one hundred twenty (120) days after the time and date set for submission. RIAC reserves the right to waive any irregularities and technical defects. RIAC reserves the right to modify, amend, or waive any provisions of this RFP, prior to the issuance of a contract. 5. Respondents are advised that all materials submitted to RIAC for consideration in response to this RFP will be considered public records as defined in chapter 2 of title 38 of the R.I. Gen. Laws, without exception, and will be released for inspection immediately upon making an award. 7

9 IX. ADDITIONAL REQUIREMENTS Campaign Finance Compliance Every person or business entity providing goods or services at a cost of $5,000 cumulated value must file an affidavit regarding political campaign contributions with the Rhode Island State Board of Elections even if no reportable contributions have been made (chapter 27 of title 17 of the R.I. Gen. Laws). Respondents may obtain the required forms at the Board of Elections, Campaign Finance Division, 50 Branch Avenue, Providence, RI 02904, ( ). Major State Decision-Maker Every Respondent must indicate whether any Rhode Island Major State Decision-Maker, as defined below, or the spouse or dependent child of such person, holds (i) a ten percent or greater equity interest, or (ii) a $5,000 or greater cash interest in Respondent s business. For purposes of this question, Major State Decision-Maker" means: (i) (ii) (iii) All general officers; and all executive or administrative head or heads of any state executive agency enumerated in R.I. Gen. Laws , as well as the executive or administrative head or heads of state quasi-public corporations, whether appointed or serving as an employee. The phrase "executive or administrative head or heads" shall include anyone serving in the positions of president, senior vice president, general counsel, director, executive director, deputy director, assistant director, executive counsel or chief of staff; All members of the general assembly and the executive or administrative head or heads of a state legislative agency, whether appointed or serving as an employee. The phrase "executive or administrative head or heads" shall include anyone serving in the positions of director, executive director, deputy director, assistant director, executive counsel or chief of staff; and All members of the state judiciary and all state magistrates and the executive or administrative head or heads of a state judicial agency, whether appointed or serving as an employee. The phrase "executive or administrative head or heads" shall include anyone serving in the positions of director, executive director, deputy director, assistant director, executive counsel, chief of staff or state court administrator. If you indicate that yes, a Major State Decision-Maker has the requisite interest in the business, please identify the Major State Decision-Maker, specify the nature of his or her ownership interest, and provide a copy of the annual financial disclosure required to be filed with the Rhode Island Ethics Commission pursuant to R.I. Gen. Laws , , and

10 State Code of Ethics RIAC is committed to maintaining the highest standards of ethics in awarding contracts. Respondents should be familiar with and abide by the State Code of Ethics, as set forth in R.I. Gen. Laws et seq. and any additional regulations as provided on the State Ethics Commission website: Non-Discrimination All proposals shall be considered based on their merit in accordance with the criteria specified herein and shall not exclude any person, firm, or other entity from consideration on the grounds of race, color, religion, sex, sexual orientation, gender identity or expression, age, national origin, or disability. For more information, see the State of Rhode Island Office of Diversity, Equity & Opportunity website at 9

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