Fort Irwin. Solar Electric Power Purchase Agreement (PPA) Pre-proposal Event June 6, Fort Irwin. Solar Electric Power Purchase Agreement (PPA)

Transcription

1 Fort Irwin Solar Electric Power Purchase Agreement (PPA) June 6, 2013 Cora Harper Community Center Barstow, CA 1

2 Agenda Items Check-in Welcome and Overview of Day s Agenda Introduction to EITF and the Army Energy Program NTC Mission and DPW Project Overview Acquisition Overview Utility Perspective Project Integration Overview Site Tour Q&A Session Wrap up 2

3 Army Energy Initiatives Task Force Mr. Alan King EITF Execution Director Fort Irwin Project Director 3

4 Energy Initiatives Task Force (EITF) established by the Secretary of the Army on September 15, 2011 EITF serves as the central management office for partnering with Army installations to implement cost-effective, large-scale, renewable energy projects, leveraging private sector financing Energy Security EITF projects should be at least microgrid ready EITF projects will be on or contiguous to Army installations Army s 1 GW renewable energy goal Looking for continuous feedback from industry: 4

5 Policy Energy Security 2012 NDAA DODI Project Development Renewable Energy Targets - Army 1 GW Goal - NDAA 2010 Authorizations - 10 USC 2922a - 10 USC 2667 Other REC Policy WTE/Biomass Federal Lands Mission Compatibility Economics Real Estate Regulation Off Take Integration Environmental Acquisition Project Execution Procurement Multi-Award Task Order Contract (MATOC) Other acquisition authorities Contracting Standardized Renewable Energy Service Agreement Innovative financing structures 5

6 120 Annual Capacity Installed (MW) (stacked bars) Fort Irwin 1 GW Goal Achieving Army Renewable Energy Goals will require an unprecedented scale-up in project development. Cumulative Capacity Installed (MW) (lines) 1, MW Biomass, Ft. Drum ~15 MW Solar, Ft. Irwin 20 MW Solar, Ft. Bliss Cumulative installed Army RE electric capacity in 2012 was ~35 MW Large-Scale Projects Built (Projected) Small-Scale Projects Built (Projected) Cumulative Capacity, Large + Small 80 Small-scale projects funded through ECIP, SRM, RCI, ESPC, etc. EITF large-scale private financed projects. 80 Cumulative Capacity, Large Only MW 1010 MW ,200 1,

7 Project Team Environmental Renewable Energy 7

8 Fort Irwin Mission and DPW Project Overview Mr. Muhammad Bari Director Public Works 8

9 NATIONAL TRAINING CENTER MISSION: Provide tough, realistic joint and combined arms training Focus at the battalion task force and brigade levels Assist commanders in developing trained, competent leaders and soldiers Identify unit training deficiencies, provide feedback to improve the force and prepare for success on the future joint battlefield Provide a venue for transformation Take care of soldiers, civilians, and family members NTC VISION: NTC trains by conducting force-on-force and live-fire training for ground and aviation brigades in a joint scenario across the spectrum of conflict, using a live-virtualconstructive training model, as portrayed by a highly lethal and capable Opposing Force and controlled by an expert and experienced Operations Group. 9

10 GARRISON MISSION: Ensure a sustainable community with a quality of life that s appropriate for an all volunteer force while continuously improving the garrison organization to ensure it is prepared to meet the challenges of an ever changing environment. GARRISON VISION: A community of choice within the Army, known as a Soldier and Family quality living environment. 10

11 Budget cuts Fort Irwin Challenges Utility bills are must fund ; however, all DoD installations are mandated to reduce their energy intensity by 30% by 2015 according to the Energy Independence and Security Act of 2007 A solar PV field allows Fort Irwin to lower conventional energy demand while providing a reliable source of renewable energy during peak demand times Unique Geography Remote location difficult to attract and retain services Average commute time for employees is 1 hour (50 miles) High turnover Future Uncertainty What will desert warfare training requirements be in 10 years, 20 years? 11

12 Fort Irwin s Future A world premiere training center Training 50,000 US and multinational forces each year across a wide range of military operations Leading the Army into the Future Training, sustaining, deploying combat ready units for worldwide contingencies in the most holistic and realistic environment available by providing a range of potential conditions U.S. ground forces might encounter based on real-world intelligence Committed to environmental and wildlife preservation in adherence with state and federal laws Committed to the Profession of Arms Dedicated to enhancing stewardship of the profession of arms, while maintaining the highest levels of competence in tactics, techniques and procedures The National Training Center at Ft. Irwin stands alone as the ultimate experience for exercising and putting to the test the Army s plans, concepts and doctrines to train those in the profession of arms to counter the next generation of threats. Success on the battlefield starts here 12

13 Current Landscape Fort Irwin is Serving and Supporting: 47 Tenant Units 5,318 Rotational Soldiers 4,732 Assigned Military (living on installation 4,016) 7,193 Family Members (living on installation 5,716) 4,874 Civilian Workforce (Gov t: 1,911; Contractor: 2,963) Daily Population 22,117 13

14 Current Landscape Land Acreage: 763,474 Acres Cantonment 14,331 Acres NASA: 32,000 Acres Barstow Daggett: Leased Land Utilities: Water (Privatized) Electric (Privatized) Gas (Contract) Environmental Cleanup: Restoration (IRP) 4 Active Munitions (MMRP) 8 Active Compliance Clean-up (CC) 7 Active Family Housing Units: 2,468 Built since To be constructed 84 Single Soldier (spaces): 1,688 Barracks 1,488 Town Center Terrace 200 Airfields/Railroads: Bicycle Lake Daggett Heliport MCLB YERMO Railhead 14

15 Installation Sustainability and Energy Conservation LEED Certifiable Bldg 237 Rooftop Solar on 5 Buildings- 57KW with $92K rebate and reduction in energy consumption by ~3% Two Net-Zero Facilities ~$4M cost savings since 2007 LEED GOLD COF 15

16 Waste to Energy Facility Current Stats Municipal Waste: tons per year Operational Cost: $2.5M per year. Need $4.5M in 2013 to open new cell Disposal Cost: $278 per ton 460 Acre permitted landfill Trash Processing Pyrolytic Gaseous System Input: 40TPD Trash, Tires Medical and Haz waste ESPC Third Party Financed Simple Payback < 15 years Output 90% reduction of waste + 1.1MW energy Prelim Feasibility HQ Approval Contract Award USACE Huntsville Project Execution Start up Oct 2014 June days 30 days months Ribbon Cutting Fall

17 New Hospital Project Stats 216K SF community hospital Renovate 10K sf of existing space within our primary Clinic Project consists of three primary components: Inpatient, outpatient primary care and administrative support Key features: - 10 inpatient beds, 2 Operating Suites, Labor and Delivery, Central Utility Plant and 496 parking spaces. - Evidence-Based Design and sustainability will be incorporated into the design. Construction Update Construction start: July 2013 Occupancy date: March

18 Water Treatment Plant Project Stats $100 million, 6.0 Million Gallon per Day (MGD) Water Treatment Plant - >99% over all water efficiency - Electro-Dialysis Reversal (EDR) primary treatment. >92% - Multi-Stage water recovery on EDR waste to recover the remaining 7% or more. - Waste recovery includes lime softening, Micro filtration, Reverse Osmosis, and mechanical evaporation. >10 miles of new pipe line and transmission pipe 1 New well and repair of 2 other wells, repair of 3 water tanks, and other enhancements to the distribution system. Construction Update Construction start: June 2013 Completion date: October

19 Project Overview Build a solar PV project near Fort Irwin s main gate The Army will procure renewable energy from the PV facility under the authority of 10 USC 2922a through a 26-year Power Purchase Agreement (PPA) The project will be for Fort Irwin consumption only; no electrons may flow back onto the grid PPA and land lease (10 USC 2667) will cross-default Army will receive fair market value in cash or in-kind services 19

20 Installation Map FORT IRWIN Main Gate Cantonment area 20

21 Site Map 21

22 Geology Fort Irwin Fort Irwin Lay of the Land Fort Irwin is located in the Mojave Desert portion of the Basin and Ranges Province The average elevation in the Mojave Desert is approximately 2,900 feet above mean sea level. In general, soils are soft to loamy sands with fine-gravelly, generally granitic substrates. Small extrusions of granitic bedrock and boulder outcrops are scattered throughout the area Air Quality Fort Irwin is located in the Non-Attainment zone for PM10 and in attainment zone for OZONE Fort Irwin is not a Title V facility and is actively involved in innovative ways to reduce emissions 22

23 Utilities Electrical System: Electrical system privatized to SCE SCE also provides power to NASA metered from Tiefort Substation Fort Irwin is billed under SCE s TOU-8 tariff rate schedule Water: Water is scarce and rainfall is low (2-4 inches per year) Groundwater high in fluoride and arsenic USGS water study underway and may identify additional sources of water. Completion of water study expected in 2016 (contingent upon funding) Water and waste water is fully privatized, owned and operated by CH2M Hill New water treatment plant will greatly improve the water situation at Fort Irwin 23

24 NEPA Status An Environmental Assessment is underway for the Project with expected completion date of December 2013 Biological Surveys and Cultural Resource Surveys have been completed and a Biological Assessment will be completed Mitigation actions necessary for the project to be built will be outlined in the Environmental Assessment and Biological Opinion 24

25 Species of Concern include: Federally Endangered Lane Mountain Milkvetch Southwestern Willow Flycatcher Least Bell s Vireo Federally Threatened Desert Tortoise State Threatened Mohave ground squirrel Mojave Fringe Toed Lizard Desert Cymopterus State Special Concern Joshua Tree Bighorn Sheep 25

26 Acquisition Overview Ms. Andrea Kincaid DLA Energy Contracting Officer Ms. Charlene Miller Contract Specialist 26

27 Agenda: Who we are and our mission DLA Energy Installation Energy contract programs Request for Proposal overview Statement of work Contract clauses Evaluation factors Proposal submission Milestones Points of Contact Questions/comment 27

28 DLA Energy Overview Mission: To provide the Department of Defense and other government agencies with comprehensive energy solutions in the most effective and efficient manner possible Vision: To be our customers first choice for energy solutions Values: Warfighter needs guide us Integrity defines us Diversity strengthens us Excellence inspires us 28

29 DLA Energy Contract Programs Installation Energy $2.1 billion Actively administering over $2.1 billion in natural gas, electricity, coal, renewable energy and Energy Savings Performance Contracts for over 200 customers (DoD and Federal Civilian) Major focus areas include: Execution of renewable energy and energy conservation requirements utilizing power purchase agreements, ESPCs and looking at UESCs Execution of agreements for implementation of electricity demand response at federal facilities Continued support for renewable goals through purchase of renewable energy credits 29

30 Request for Proposal Power purchase agreement for electricity generated by solar photovoltaic array on-site at Fort Irwin Contractor procures/finances/installs/owns/operates/maintains solar PV array Government purchases electricity at fixed price per kwh 25-year generation/purchase term; 1-year construction period Use of property conveyed via separate real estate agreement Government reserves right not to award contract 30

31 Request for Proposal Statement of Work Statement of Work CLIN 0001 Unit Price for Energy ($/kwh) Government required minimum project size: 15 MW; Contractor shall maximize space available Firm-fixed price per kwh; first year contract price can not exceed $.096/kWh; up to a 2.8 percent escalation rate compounded annually considered Government will retain Renewable Energy Certificates; swaps are allowed Solar array must be fully operational within 12 months of contract award 31

32 Request for Proposal Statement of Work, cont. Approximately 390 acres of land to be conveyed via separate out-grant Two sites: Premises ( acres) EUL Site ( acres)» Only EUL developer shall be considered for proposal submission on the EUL site. In-Kind Consideration cash payments, reduced rate Future microgrid capabilities through inverters Notice of Intent to Award; Interconnection 32

33 Request for Proposal Terms and Conditions General Terms and Conditions outlined within the RFP Contractor-specific T&Cs can be submitted with the proposal for government s review and consideration Only the Contracting Officer can affect changes Contracting Officer s Representative Upon award, an on-site COR will be appointed 33

34 Request for Proposal Evaluation Factors The proposed evaluation factors and sub-factors are: Factor 1: Technical Capability/Risk Subfactor 1: Project Scope Subfactor 2: Renewable Project Experience Subfactor 3: Management/Key Personnel Subfactor 4: Mitigation plan Subfactor 5: Financial capability 34

35 Request for Proposal Evaluation Factors, cont. Factor 2: Past Performance Factor 3: Socioeconomic Consideration Factor 4: AbilityOne Commitment Factor 5: Price Proposal Non-price evaluation factors and significant sub-factors are listed in descending order of importance, with each technical capability/risk evaluation subfactor of Factor 1 being evaluated independently. When combined, the non-price evaluation factors/subfactors are approximately equal in importance as price 35

36 Request for Proposal Proposal Submission, cont. Providers shall prepare the proposal according to the titles and page limits of each volume described below: Volume Title Maximum Page Limit I Technical Proposal (Written) 50 pages II Past Performance 10 pages III Socio-Economic Consideration 2 pages IV AbilityOne Commitment 2 pages V Price Proposal None VI Contract Documentation None 36

37 Request for Proposal Proposal Submission, cont. Proposals shall cross reference Section C, Statement of Work, and their proposal Providers shall submit three hard copies and two copies on CD All amendments must be signed and returned Any proposal, modification or revision received at the government office designated in the solicitation after the exact time specified for receipt of offers is late and will not be considered 37

38 Milestones RFP issuance: May 9, 2013 : June 6, 2013 Second Site Visit: July 9, 2013 Cut-off for RFP questions: July 18, 2013 RFP closing: August 1, 2013, 14:00 EST 38

39 Points of Contact DLA Energy Installation Energy, Fort Belvoir, VA Andrea Kincaid, , Cynthia Ralph, , Charlene Miller, , 39

40 Rule 21 Application Process Presenter Grid Interconnection and Contract Development Carlos Gonzalez SOUTHERN CALIFORNIA EDISON

41 Agenda Optional Pre-Application Complete Interconnection Request Deem Interconnection Request Valid and Complete Timeline Applicant Selects a Study Process Fast Track Process and Timeline Detailed Study Independent Study Process and Timeline Distribution Group Study Process and Timeline Transmission Cluster Study Process Financial Security Posting System Impact Study and Facility Study Cost CONFIDENTIAL 41 SOUTHERN CALIFORNIA EDISON

42 Optional Pre-Application Submit a Pre-Application Report and a non-refundable processing fee of $300 Within ten (10) Business Days ( BD ) of receipt, Distribution Provider ( DP ) shall provide pre-application data such as: Total Capacity (MW) of substation/area bus or bank and circuit likely to serve proposed site Allocated Capacity (MW) of substation/area bus or bank and circuit likely to serve proposed site Queued Capacity (MW) of substation/area bus or bank and circuit likely to serve proposed site Available Capacity (MW) of substation/area bus or bank and circuit likely to serve propose site Approximate circuit distance between the proposed site and the substation Number of protective devices and number of voltage regulating devices between the proposed site and the substation/areas Applicant understands that the distribution system is dynamic and subject to change and the data provide in the Pre-Application Report may become outdated and not useful at the time of submission of the complete Interconnection Request CONFIDENTIAL 42 SOUTHERN CALIFORNIA EDISON

43 Complete Interconnection Request Complete Interconnection Request ( IR ) include: A completed interconnection request form, with all requested technical data A site plan diagram A single line electrical diagram Site exclusivity documentation (Export Projects) An IR Fee and, if detailed studies are required, a study deposit The IR Fee is $800 If a project requires Supplemental Review, there is a $2,500 non-refundable fee For Independent Study process: the deposit for projects 5 MWs and less is $10,000 for a System Impact Study and $15,000 for a Facilities Study, for projects greater than 5 MW is $50,000 plus $1,000/MW up to $250,000 maximum Rule 21 Interconnection Requests are studied for energy only, unless the Applicant requests a deliverability assessment in accordance with the WDAT Request for Distribution Service is a separate application that you may need depending on your power procurement agreement for export projects (see Section 15.2 of WDAT) Lack of site exclusivity documentation and lack of technical data are typical reasons for triggering a deficiency notice CONFIDENTIAL 43 SOUTHERN CALIFORNIA EDISON

44 Timeline to Deem IR Valid and Complete DP shall provide first written notification to the Applicant within 10 BD of receipt if the IR is deemed complete and valid If not, the Deficiency Notification Cure process begins First Deficiency Notification, Applicant has within ten (10) BD from the date of receipt of the notification to cure the deficiencies Second Deficiency Notification, DP will send notice within ten (10) BD of receipt of additional information to Applicant requesting additional information Applicant has within five (5) BD of receipt of second deficiency to submit the additional information required and have the DP deem their IR valid and complete Extension Request, Applicant can request an extension of up to twenty (20) BD to resolve deficiencies in their IR Failure to resolve deficiencies within the prescribe timelines, DP will deem the IR withdrawn Assignment of Queue Position Once the IR is deemed valid and complete, the Applicant will be assigned a queue position CONFIDENTIAL 44 SOUTHERN CALIFORNIA EDISON

45 Fast Track Study Process Non-Exporting Facilities are eligible for Fast Track evaluation regardless of Gross Nameplate Rating of the proposed Generating Facility Fast Track Review Timeline Upon receipt of a complete and valid IR, the DP has within fifteen (15) BD to provide in writing the results of the initial review. If the Applicant passed the initial Fast Track Screens, but requires Interconnection Facilities and/or Distribution Upgrades, the DP will provide Applicant with an non-binding cost estimate of the interconnection facilities necessary to interconnect their project safely and reliability and timeframes for completing the IA, within fifteen (15) BD of providing the notice of initial review results If the Applicant failed the initial Fast Track Screens, the Applicant shall have ten (10) BD following the initial review notification to: Initial Review Results meeting Proceed to Supplemental Review, or Withdraw the IR Supplemental Review DP shall complete Supplemental Review within twenty (20) BD, absent extraordinary circumstances, following authorization and receipt of fee DP will provide the Applicant a non-binding cost estimate of interconnection facilities and timeframes for completing the IA CONFIDENTIAL 45 SOUTHERN CALIFORNIA EDISON

46 Fast Track Study Process, continues If the Applicant failed Supplemental Review, the Applicant shall have within fifteen (15) BD following notification to: Proceed to Supplemental Review meeting Proceed to Detailed Study, or Withdraw the IR Execution of Generating Facility Interconnection Agreement ( GFIA ) Timeline Applicant passes Fast Track after Initial Review or Supplemental Review Applicant accepts non-binding cost estimate and timeline to construct facilities Applicant has within fifteen (15) BD following receipt of cost estimate to: Request a GFIA Withdraw the IR Request a fifteen (15) BD extension to respond Upon receipt of notification to proceed with a GFIA, the DP shall provide Applicant with a Draft GFIA within fifteen (15) BD of request Upon receipt of Draft GFIA, Applicant has ninety (90) Calendar Days ( CD ) to sign and return the GFIA The Applicant is required to provide written comments or notification of no comments within the first thirty (30) CD, if not, the IR shall be deemed withdrawn The Applicant is required to execute the GFIA within ninety (90) CD, if not, the IR shall be deemed withdrawn CONFIDENTIAL 46 SOUTHERN CALIFORNIA EDISON

47 Detailed Study Process The Applicant has the option to apply directly to the Detailed Study Process or if they fail Fast Track: Independent Study or Distribution Group Study process dependent on results of Electrical Independence Test for Transmission ( screen Q ) and Distribution ( screen R ) Fail screen Q, Transmission Cluster Study Process Pass Screen Q, test for screen R Fail screen R, Distribution Group Study Pass screen R, Independent Study Process ( ISP ) If Applicant fails screen Q, Applicant has within twenty (20) BD following receipt of notification to: Proceed to Transmission Cluster Study Process Withdraw the IR Request a twenty (20) BD extension to respond If Applicant passes screen Q and fails screen R, Applicant has within twenty (20) BD following receipt of notification to: Proceed to Distribution Group Study Process Withdraw the IR Request a twenty (20) BD extension to respond If Applicant passes screens Q & R Proceed to ISP Within five (BD) notification, DP to schedule a Scoping Meeting with Applicant CONFIDENTIAL 47 SOUTHERN CALIFORNIA EDISON

48 Detailed Study Process, continues ISP and Timeline: Within fifteen (15) BD of Scoping Meeting, DP will provide Applicant with an Independent Study Process Agreement ( ISPA ), which outlines the cost of the System Impact Study and Facilities Study and contain a non-binding cost estimate to perform the studies Applicant shall have no later than thirty (30) BD to execute and deliver the ISPA or have their IR be deemed withdrawn System Impact Study ( SIS ) DP will have ninety (90) CD after the execution of the ISPA to deliver a final and complete SIS Interconnection Facilities Studies ( FS ) DP will shall complete and provide the Applicant the FS within ninety (90) CD after the Applicant posts the initial Interconnection Financial Security ( IFS ) if Distribution Upgrades and/or Network Upgrades are identified, if not, the DP shall complete and provide the Applicant the FS within sixty (60) CD after posting the initial IFS Execution of Generating Facility Interconnection Agreement ( GIFA ) Timeline Within thirty (30) CD after the DP provides the final FS report to the Applicant, or within thirty (30)CD of an FS Results Meeting, the DP shall tender a Draft GIFA to the Applicant Upon receipt of Draft GFIA, Applicant has ninety (90) Calendar Days ( CD ) to sign and return the GFIA The Applicant is required to provide written comments or notification of no comments within the first thirty (30) CD, if not, the IR shall be deemed withdrawn The Applicant is required to execute the GIFA within ninety (90) CD, if not, the IR shall be deemed withdrawn CONFIDENTIAL 48 SOUTHERN CALIFORNIA EDISON

49 Detailed Study Process, continues Distribution Group Study Process and Timeline: The Distribution Group track mimics the timelines associated with the independent Financial Security Postings Three financial security postings are due at different times during the ISP Initial posting due: 60 calendar days after SIS. Second posting due: 120 calendar days after Facilities Study (or SIS if Facilities Study waived). Third posting due: On or before start of construction. Failure to post within the specified time will result in the Interconnection Request being deemed withdrawn. Study Costs: System Impact Study and Facilities Study Study deposit: <= 5 MW $10,000 for SIS, $15,000 for FS, > 5 MW $50,000 plus $1,000 per MW; Max $250,000 CONFIDENTIAL 49 SOUTHERN CALIFORNIA EDISON

50 Background Slides SOUTHERN CALIFORNIA EDISON

51 Rule 21 Study Flow Chart CONFIDENTIAL 51 SOUTHERN CALIFORNIA EDISON

52 Rule 21 Study Flow Chart CONFIDENTIAL 52 SOUTHERN CALIFORNIA EDISON

53 Integration and Interconnection Overview Mr. Scott Kenner EITF Support Contractor Concurrent Technologies Corporation 53

54 Interconnection REGS Interconnection to Fort Irwin s Tiefort Substation SCE Interconnection Study Rule 21 application process 54

55 Interconnection Requirements SCE 5% minimum load limit 1,000 kw minimum is based on 20MW of total connected PV to Fort Irwin Backflow prevention accomplished through power conditioning control 55

56 SCE Interconnection Example SCE ownership of the distribution system 115 kv 34.5 kv Tiefort substation Three 34.5 kv distribution supplies Two parallel transformers 25 MVA SCE will add a new circuit breaker and supply a new subtransmission line Not to exceed 1,000 feet from the substation fence 56

57 SCE Interconnection Example Fund all SCE and contractor substation and electrical distribution system improvements Assume $2.5 Million for SCE system Assume $183,000 per year for annual maintenance fees Interconnect PV REGS at SCE connection point Construct a subtransmission system from SCE point to a PV location on the property 57

58 SCE Interconnection Example Fund and conduct all electrical needs to provide the interconnect 58

59 Parcel B Installation Example Tiefort Sub Fort Irwin Security 59

60 Transmission easement area map 15_MW_Site_Proposed 60

61 SCE 34.5 kv Distribution 61

62 NASA Road Transition Facing South West 62

63 Top of Parcel B Facing South 63

64 Parcel B Facing North East to NASA Road 64

65 Parcel B Installation Example New 34.5 kv Interconnect New 34.5 kv Switching Station New 15 MW PV Site Access Road 65

66 Lunch Please return promptly from lunch to board the buses for the site tour 66