RFQ Amend 0001_Info Day Slides.pdf

DOE SRS Public Release Review No: DOE‐ROI‐ 57432 Approved for Public Release

Cleanup to Clean Energy Solar Power Generation Information Day Opportunity for parties interested in submitting a response to a future Request for Qualification to ask questions and view available tracts of land

February 29, 2024 Onsite at Savannah River Site

Approved for Public Release

• Welcome / Introductions of DOE Team Members

• Overview of Savannah River Site (SRS) Mission

• Ground Rules

• Overview of Cleanup to Clean Energy Program

• SRS Path to 100% Carbon-Free Energy (CFE) Usage

– How CFE% is derived

– SRS Phased Strategy

• RFQ Overview / Discussion

• Draft Lease Overview / Discussion

• Near Term Schedule

• Required Processes

– National Environmental Policy Act (NEPA)

– National Historic Preservation Act (NHPA) Section 106

– Other Processes

• Tour of Potential Sites

Agenda

Approved for Public Release

Section 102(i): 100 percent carbon pollution-free electricity on a net annual basis by 2030, including 50 percent 24/7 carbon pollution-free electricity, as defined in section 603(a) of this order;

Section 203: Each agency shall increase its percentage use of carbon pollution-free electricity, so that it constitutes 100 percent of facility electrical energy use on an annual basis and seek to match use on an hourly basis to achieve 50 percent 24/7 carbon pollution-free electricity, by fiscal year 2030.

In addition, agencies shall facilitate new carbon pollution-free electricity generation and energy storage capacity by authorizing use of their real property assets, such as rooftops, parking structures, and adjoining land, for the development of new carbon pollution-free electricity generation and energy storage through leases, grants, permits, or other mechanisms, to the extent permitted by law.

Section 603(d): "Carbon pollution-free electricity" means electrical energy produced from resources that generate no carbon emissions, including marine energy, solar, wind, hydrokinetic (including tidal, wave, current, and thermal), geothermal, hydroelectric, nuclear, renewably sourced hydrogen, and electrical energy generation from fossil resources to the extent there is active capture and storage of carbon dioxide emissions that meets EPA requirements;

Section 603(a): “24/7 carbon pollution-free electricity" means carbon pollution-free electricity procured to match actual electricity consumption on an hourly basis and produced within the same regional grid where the energy is consumed

What the Executive Order #14057 Requires

Approved for Public Release

• Purchased CFE is electricity purchased from a qualifying CFE generation source with the associated EACs, i.e., the original associated energy attributes have not been separately sold, transferred, or retired.

• On-site CFE is electricity generated at a Federal facility. To count CFE produced at a Federal facility toward the net annual CFE requirement, an agency must obtain and retire the EACs sourced from the on-site CFE generation.

• Purchased EACs are EACs that are procured independently from the agency’s purchases of physical power, often referred to as “unbundled” EACs.

• Grid-supplied CFE is CFE delivered as part of default electricity service or the electricity grid mix from a utility or electric service provider (in contrast to purchased CFE, in which the CFE and associated EAC are specified contractually)

Meeting the CFE Requirement in EO #14057

Net Annual

CFE

Purchased

CFE

On-site

CFE

Purchased EACs

Grid- Supplied

CFE

Approved for Public Release

SRS Parallel Paths to Achieve 100% CFE Usage

Biomass Power Generation (7.5% CFE Credit)

Grid Supplied

CFE (45.8%)

53.3% Matched

53.3% Total CFE Goal Attainment

50+% Matched

100% Total

2037 ± 100% Matched

100+% Total

Offset Non‐CFE w/ EACs (One 200+ MW or Multiple Smaller facilities with Generated Power put to the Grid)

Other CFE Technologies

Onsite Generation

Generation Matches

Consumption

Generation Matches

Consumption

Power Delivered To Grid

Photovoltaic Solar

Approved for Public Release

SRS Cleanup to Clean Energy Schedule 203820372036203520342033203220312030202920282027202620252024

Phase One

Construction

Operation

Phase One

Construction

Operation

Solar Farm(s) to meet 2030 goal

Additional generation to meet SRPPF Requirements

CFE Technology to supply 100% of power

Development / Construction / Licensing

Operation

Biomass Generation Operation

Grid-Supplied Typical Consumption

SRPPF Power Increase Operation

Standby

Approved for Public Release

• Grid-supplied CFE is CFE delivered as part of default electricity service, or the electricity grid mix from a utility or electric service provider.

• This component of the solution addresses the 24/7 CPFE matching requirement

• 45.8% of power consumed from the grid serving SRS is CFE

• With biomass generation, grid power accounts for only about 75% of total SRS consumption

SRS Plan to Achieve 2030 Mandate – Grid Supplied Power eGRID Subregions

Approved for Public Release

• SRS is located with the SRVC Carolina/Virginia eGrid Region

• Currently 45.8% of SRS grid-supplied power is CFE

• SRS generates about 75% of power used with onsite biomass facility

• CFE measurement system allows onsite renewable, but non-CFE power sources to be counted as CFE up to 7.5% of total

• Approximately 47% of SRS power is non-CFE

SRS Plan to Achieve 2030 Mandate – Onsite Generation (incl.

SRPPF)

(2030 est.)

45.8%45.8%Grid-Supplied CFE 7.5%7.5%Grandfathered Biomass Credit

46.7%46.7%Non CFE

MWh466,250230,000Total Annual Consumption (Grid-Supplied) MWh213,543105,340Carbon-Free Consumption MWh217,739107,410Non-CFE Consumption MWh85,00085,000Total Annual Biomass Generation Onsite MWh43,65661,375Non-CFE Consumption (Generated less Credit) MWh261,395168,785Onsite CFE Generation to Offset Non-CFE Usage

Required Solar Installation (MWac) 16.60%16.60%Capacity Factor (NREL PVWatts) hours87608760Hours per Year MWac180116Solar Farm Size (MWac)

10%10%Invertor Losses MWdc200129Solar Farm Size (MWdc) acres19971290Approximate Acreage Required @ 10 acre / MW

75%% increase in total power usage due to SRPPF

Approved for Public Release

4.2.5 Requirements for applying EACs toward CFE goals

In order for electricity procured or produced to count toward net annual CFE progress, an agency must obtain and retire the associated EAC for all strategies identified in section 4.2.4 except grid-supplied CFE.

To count toward the net annual CFE goal, subject to the specific exemptions in sections 4.2.6,

4.2.7 and 4.2.8, agencies must source EACs from generation resources that:

• Produce CFE;

• Were placed in service on or after October 1, 2021, either as a new resource or as new capacity at an existing resource modified to increase output; and

• Deliver CFE to the same grid region of Federal facility consumption.

EACs may be generated within six months prior to or three months after the net annual CFE compliance year.

4.2.5 Requirements for applying EACs toward CFE goals

Approved for Public Release

Anticipated Program Phase One

• Apply for Interconnection

• Develop Program

Requirements

• Complete NEPA, NHPA, Other Studies

• Interconnection

Agreement

• Power Purchase

Agreement

• Arrange Financing

• Order Long Lead Items

• Arrange Construction

Resources

• Environmental, Archeological and Ecological Mitigation

• Arrange for

Decommissioning Bond

DecommissionOperationConstruction

• Site Preparation

• Construct Fencing

• Erosion Control

• Build Solar Farm

• Interconnection

• Licensing

• Arrange Operation

Resources

• Begin Commercial

Operations

• Generate and Transmit Electricity

• Perform Maintenance

• Track Power Output

• Register Environmental

Attribute Certificates

• Determine EACs required by SRS

• Retire EACs in the name of SRS

• Disposition Remaining

EACs

• Extend Lease as

Desired

• Cease Operations

• Remove Solar Farm components

• Remove Fencing

• Grade Land

• Replant Grass and/or

Trees

Approved for Public Release

WORK

DAYSENDSTARTASSIGNED TOTASK

Closeout RFI 572-Jan15-OctHyndsCollect RFI Response 58-Jan2-JanHyndsResponse Comparison / Analysis

212-Feb5-JanSRS ContractingIdentify Required Set Asides (Sm. Bus., etc.)

141-Feb15-JanHyndsFinalize List of Information Day Invitees

RFQ

11-Feb1-FebHynds / DaileySend Information Day Invitations 129-Feb29-FebHynds / ContractingInformation Day

408-Mar15-JanHynds / ContractingComplete Request for Information Document 408-Mar15-JanHynds / Real EstateComplete Draft Lease Document 18-Mar8-MarContractingRelease RFQ and Draft Lease

3626-Apr8-MarContractingAccept RFQ Responses 53-May29-AprSelection CommitteeSelect Developer(s)

Negotiations 3429-Mar13-FebWilliams / HyndsComplete Environmental Baseline Study 11-Apr1-AprWilliams / HyndsSend EBS Notice to DHEC and EPA 13-May3-MayContractingNotify Selected Developer(s)

4028-Jun6-MayContracting/Real EstateNegotiate Lease Agreement 11-Jul1-JulReal EstateSign Lease Agreement (or MOA)

Interconnection Application 4429-Aug1-JulSelected Developer(s)Prepare initial design and interconnect application 130-Aug30-AugSelected Developer(s)Submit Application

• Interconnection applications due August 30, 2024

• Several large tasks not shown are anticipated to occur on inside time could migrate to the critical path

– Finalize RFQ and Draft lease agreement

– Negotiations with NWS, US Forestry Service, etc. for SRS Site Permit

– South Carolina Public Service Commission

– Completion of Environmental Baseline Study

Near Term Schedule

≥ 90 days

Approved for Public Release

Request for Qualification Highlights

Approved for Public Release

• Anticipate it will be available on March 8th.

• Divides Project into three phases: Phase One, Construction & Operations

– Preferred site(s), conceptual layout, anticipated output, etc.

– Schedule with key milestones within each phase

– Proposed consideration by phase

– Desired lease term

• General Conditions

– Consistent with existing Federal, State and local laws

– Offeror does own due diligence

– DOE-SR not required to purchase anything or contribute to development cost

– Improvements removed at end of lease and extensions

• Financial

– Demonstrate access to funding

– Decommissioning Bond or another instrument

– Fees, taxes, permits, licensing, etc. the responsibility of Offeror

Approved for Public Release

• Development and Use Related

– Project viable without DOE contribution

– Subject to security requirements, fence, locks, coordination with SRS emergency services

– Must prevent / manage soil erosion

• Other Requirements

– Indemnification

– Data disclosure and marking of proprietary information

– Government responsible for any remediation discovered during project

• Mandatory Lease Clauses

– Anti-Kickback Procedures

– Contract Work Hours and Safety Standards Act – Overtime Compensation

– Construction Wage Rate (formally Davis-Bacon Act)

– Cyber Clearance Required for any electronic device with communication capability

– Buy American strongly encouraged but is not a requirement

Approved for Public Release

Draft Lease Highlights

Approved for Public Release

• Defined with three terms, Phase One, Construction, Operations

• Phase One structured to function like an option

– Phase One can be extended by Lessee

– Lessee must notify DOE of a desire to move into the construction phase

• Consideration in cash with an agreement to provide EACs

• Transfers and Assignments allowed with DOE approval beforehand

• Environmental indemnification of DOE and vice versa

• Must maintain insurance

• All costs and expenses responsibility of the Lessee with no right of reimbursement, contribution or other payment

• If a situation requiring remediation is discovered, DOE is responsible for costs

Draft Lease Highlights

Approved for Public Release

Regulatory Processes Required for Potential Leasing Actions

Approved for Public Release

National Environmental Policy Act (NEPA) Evaluations Categorical Exclusion (CX): a category of actions that DOE has determined normally would not individually or cumulatively have potential for significant environmental impacts

– Completed quickly once sufficient information is available

Environmental Assessment (EA): a brief analysis to determine whether an EIS is required

– Maximum 1 year (typically 6–10 months) and 75 pages (+citations and appendices)

– Result: Finding of No Significant Impact (FONSI) or determination to prepare an EIS Environmental Impact Statement (EIS): a detailed environmental analysis

– Prepare if proposed action has a reasonably foreseeable significant effect on the quality of the human environment

– Maximum 2 years (can be extended) and 150 pages or, if extraordinarily complex, 300 pages (+citations and appendices)

Key Processes Required

Approved for Public Release

• DOE determines how the EA or EIS will be prepared

• Third-Party Agreement

– DOE selects and directs work of contractor

– Applicant pays the contractor

• Applicant prepares

– Only an option after DOE prescribes procedures

– DOE is responsible for content

NEPA Preparation Options

Approved for Public Release

• NEPA Document Manager (NDM) owns and leads the NEPA process while ensuring integrity of NEPA analysis

• NEPA Compliance Officer guides NDM through document preparation and NEPA process

• DOE-SR Manager approves EA and FONSI however, only reviews the EIS and ROD

• DOE-HQ approves EIS and ROD

• In addition, DOE…

– Determines the type of NEPA review which is Site and project specific

– Independently evaluates all information from applicant

– Is responsible for the content

– Provides information on site conditions e.g., land use plans, environmental reports

– Provides information on site activities and operations

• Applicant Role - NEPA

– Provide information on the proposal

– Provide objective information on environmental impacts

– Respond timely to requests

– Applicant’s role will be expanded if they prepare the NEPA evaluation (EA/EIS)

NEPA Roles and Responsibilities

Approved for Public Release

• Federally listed species impacted by the project will require consultation with the US Fish and Wildlife Service (USFWS).

– Listed species include Threatened and Endangered Species.

– Candidate species for listing induce consideration as they may impact the project.

• Surveys for these species are expected

• Consultation is likely to add 180+ days to the process, in addition to applying any mitigation measures before proceeding.

• Sites A, B, and H are in the Primary Habitat Area designated for the endangered Red-cockaded Woodpecker (RCW), where consultation is certain to be required.

• Sites C, F, G and J are outside of the designated habitat for this species; however listed species may be found when surveyed.

• All formal communication with the USFWS will be routed through DOE.

Endanger Species Act Considerations

Approved for Public Release

National Historic Preservation Act (NHPA) Section 106

– Identify Historic Properties via literature review, field surveys, and during discussions with consulting parties and Tribes (typically 3-6 months)

– Consider effects of proposed project on Historic Properties in consultation with consulting parties and Tribes (typically 3 months) –Work with consulting parties and Tribes on options to avoid or mitigate adverse effects (typically 3-6 months)

Key Processes Required, continued

Approved for Public Release

• Cultural Resources Program Manager works with

– University of South Carolina: Savannah River Archaeological Research Program (SRARP)

• DOE…

– Determines the applicability of NHPA Section 106

– Independently evaluates all information from applicant

– Is responsible for the content of the NHPA Section 106 Identification, evaluation and determination of significance or eligibility and whether there would be an adverse effect

– Is responsible for defining the appropriate mitigation for adverse effects with consulting parties

– Is responsible for signing a Memorandum of Agreement with consulting parties

• Applicant Role - NHPA

– Provide information on the proposal

– Respond timely to requests

NHPA Roles and Responsibilities

Approved for Public Release

• DOE determines how the NHPA Section 106 documentation will be prepared

• DOE tasks and pays SRARP (ARPA permit holder)

• Third-Party Agreement pending SRARP coordination

– DOE selects and directs work of contractor

– Applicant pays the contractor

• Applicant prepares pending SRARP coordination

– Only an option after DOE prescribes procedures

– DOE is responsible for content

• Applicant pays for mitigation costs

NHPA Preparation Options

Approved for Public Release

• Comprehensive Environmental Response, Compensation and Liability Act Section 120 (h) (approximately 12 months)

– determines whether hazardous substances are present, status of remediation, mechanisms in place to assure ongoing protection of human health and the environment

– communicates with the Environmental Protection Agency and State of South Carolina

– documents, as needed, information/requirements in lease

• DOE Order 458.1, Radiation Protection of the Public and the Environment (approximately 12 months)

– performs historical site assessment

– conducts radiological surveys and sampling

– evaluates results and secures Independent Verification

– finalizes clearance documents

Other Processes Managed by DOE