Attachment_20_--Fort_Drum_PPC_Presentation.pdf

Fort Drum Biomass Generation Facility PPA Pre-proposal Conference

Dulles State Office Building Watertown, NY

Fort Drum Biomass Generation Facility PPA Pre-proposal Conference January 24, 2013

Biomass Generation Facility PPA Pre-proposal Conference Agenda

• Welcome Opening, Army Energy Initiatives Task Force (EITF)

• Garrison and Project Overview, Fort Drum

• Acquisition Overview, Defense Logistics Agency

• Utility Perspective, National Grid

• Local Community Perspective, JCIDA

• Site Tour

• Q&A Session

Biomass Generation Facility PPA

Army Energy Initiatives Task Force

Mr. Erich Kurre Fort Drum Project Director

Biomass Generation Facility PPA Pre-proposal Conference

Energy Initiatives Task Force (EITF) established by the Secretary of the Army on September 15, 2011

• EITF serves as the central management organization for partnering with Army installations to implement cost-effective, large-scale, renewable energy projects, leveraging private sector financing

Advancement of Army Objectives/Goals

• Army’s 1 GW Renewable Energy Goal by 2025 (2.8 % for 28MW)

• Army’s EPAct 2005 Goal of 7.5% Renewable Energy by 2013

(147,000 MWh of 750,000 MWh total for the Army, or 19.6% for a 28MW facility)

Biomass Generation Facility PPA Pre-proposal Conference

Policy Energy Security

• 2012 NDAA

• DODI 4170.11

Renewable Energy

• Targets

- Army 1 GW Goal

- NDAA 2010

• Authorizations

- 10 USC 2922a

- 10 USC 2667

Other

• REC Policy

• WTE/Biomass

• Federal Lands

Project Development 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 PPA

• Innovative financing structures

Energy Initiatives Task Force UNCLASSIFIED 5

Presenter Presentation Notes Over the past year, we have been able to establish a comprehensive understanding of our strengths and weaknesses We know the regulations we have to accomplish We understand the various policies and authorities available to us We understand the risks that a developer may have to face And we know the various procurement vehicles available to the developers for the development of the projects

Biomass Generation Facility PPA Pre-proposal Conference

100 100 100 100 100 100 100

80 80

60 55

10 10 10 10 10 10 10

10 10

1,000

1,200

1,400

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Small-Scale Projects Built (Projected) Large-Scale Projects Built (Projected)

Cumulative Capacity, Large + Small Cumulative Capacity, Large Only

Annual Capacity Installed (MW) (stacked bars)

Cumulative Capacity Installed

(MW)

(lines)

EITF projects use third-party financing : PPA, EUL, and large UESC / ESPC

Small-scale projects, relying on multiple funding mechanisms (ECIP, SRM, ESPC, etc.)

1010 MW

1139 MW

Achieving Army Renewable Energy Goals will require an unprecedented scale-up in project development.

28 MW Biomass, Ft. Drum

1 GW Goal

Presenter Presentation Notes The EITF’s mission is to help the Army achieve their 1 GW installed renewable energy generation and Fort Drum plays an important part in our 2015 installed capacity estimates.

Biomass Generation Facility PPA Pre-proposal Conference

Project Team

Environmental Renewable Energy

Biomass Generation Facility PPA Pre-proposal Conference

Fort Drum Base Energy Initiatives & Project Overview

Mr. Jim Corriveau

Public Works Director

Biomass Generation Facility PPA Pre-proposal Conference

Mission:

Provide quality installation support to our Soldiers and their Families that is equitable to their quality of service and sacrifice to our Nation.

Vision:

A Garrison Team that cares for its people, fosters a positive environment, and in turn, provides first class service to its customers –The Soldiers and Their Families.

A place where Civilians and Soldiers enjoy working and living side by side, are proud of their accomplishments, and strive for excellence every day.

Biomass Generation Facility PPA

Fort Drum Energy Goals

• Maintain Low Energy Costs

• Conservation

• Use Of Renewable Energy

• Energy Security

• Protect Environment

Biomass Generation Facility PPA

Tour Route

Biomass Generation Facility PPA Pre-proposal Conference Greyfield Parcel Overview

• Proposed greyfield site supported a portable asphalt plant - currently vacant - and a portion adjacent to Route 26 for site access

– Route 26 Gate can be reinstated for access

– Perimeter security fence required between the greyfield parcel and the Fort Drum cantonment area

• Total acreage for the parcel is 27 acres

Biomass Generation Facility PPA Pre-proposal Conference Greyfield Parcel Overview (cont.)

• Enough space to provide a 30-day biomass feedstock storage supply for a biomass plant of up to 28 MW

• Approximately 1.5 miles northeast from the North Substation

• Building domestic level water and sanitary sewer needs may be interconnected to the Fort Drum system

• Generation cooling needs must be developed on site

Biomass Generation Facility PPA

Parcel Map

Biomass Generation Facility PPA Pre-proposal Conference Environmental Requirements

• Initial Scope of Work Planning Package Complete (Army)

– NEPA completion still required

• Developer responsibilities:

– Wetland requirements

– Species conservation requirements

Biomass Generation Facility PPA Pre-proposal Conference

Transmission Route Possibilities

Biomass Generation Facility PPA

Acquisition Overview

Mr. John Nelson Contracting Officer

Defense Logistics Agency – Energy

Biomass Generation Facility PPA Pre-proposal Conference DLA Energy

• 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.

Biomass Generation Facility PPA Pre-proposal Conference

• Administering $2.4 billion in natural gas, electricity, coal, renewable energy and ESPCs 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 UESCs

• Execution of agreements for implementation of electricity demand response at federal facilities

• Continued support for renewable goals through purchase of renewable energy credits

DLA Energy Contract Programs

Biomass Generation Facility PPA Pre-proposal Conference

Renewable Goal

• EPAct 2005

• 7 ½% Renewable by 2013

• National Defense Authorization Act of 2007

• 25% Renewable by 2025

• Defense Science Board Report

• Energy Security

Biomass Generation Facility PPA Pre-proposal Conference

• Request for Information

• Wind

• Solar

• Biomass

• Request for Proposal

• Statement of Work

• CLIN 0001 On-site Biomass Generated Energy ($/kWh)

• CLIN 0002 Renewable Power Retail Open Access ($/kWh)

Requirement Development

Biomass Generation Facility PPA Pre-proposal Conference

• On-site Biomass Generated Energy (CLIN 0001)

• Contractor finances/constructs/owns/operates/maintains biomass facility

• Government purchases electricity at fixed price per kWh

• Supply shall be for up to 25-years (+ construction)

• Use of property conveyed via real estate agreement

• Government reserves right not to award contract

Request for Proposal

Biomass Generation Facility PPA Pre-proposal Conference

CLIN 0001

• Government required minimum project size: 15

MW

• Firm-fixed price per kWh; first year contract price can not exceed $0.056 /kWh; up to a 4.88 percent escalation rate compounded annually considered

• Government will retain Renewable Energy Certificates; swaps are allowed

Biomass Generation Facility PPA Pre-proposal Conference

CLIN 0001 SOW, continued

• Approximately 27 acres of land may be conveyed via a real estate outgrant

• Greyfield

• In-Kind Consideration

• Equal to or greater than fair market rental value of the land (cash payments, reduced rate)

• Notice of Intent to Award will precede interconnection and NEPA

Biomass Generation Facility PPA Pre-proposal Conference

• The evaluation factors and sub-factors are:

• Factor 1: Technical Capability/Risk

• Subfactor 1: Technical Scope

• Subfactor 2: Biomass Renewable Project

Experience

• Subfactor 3: Management/Key Personnel

• Subfactor 4: Mitigation

• Subfactor 5: Financial Capability

CLIN 0001 Evaluation Factors

Biomass Generation Facility PPA Pre-proposal Conference

• Factor 2: Past Performance

• Factor 3: Socioeconomic Consideration

• Factor 4: AbilityOne Commitment

• Factor 5: Price Consideration

• 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.

CLIN 0001 Evaluation Factors, continued

Biomass Generation Facility PPA Pre-proposal Conference

• Providers shall prepare the proposal according to the titles and page limits of each volume described below:

CLIN 0001 Proposal Submission

Technical Proposal (Written) 50 pages

Past Performance 10 pages

Socio-Economic Consideration 2 pages

AbilityOne Commitment 2 pages

Price Proposal None

Contract Documentation None

Biomass Generation Facility PPA Pre-proposal Conference

Renewable Power Retail Open Access CLIN 0002

• Requirements contract

• Retail Open Access

• Offeror must be an approved supplier by award date

• Requirements =100% of Fort Drum usage

• 10 year supply and transmission contract

• Must provide RECs

• Federal Government approved technologies only

• RECs must meet the definition of new

Biomass Generation Facility PPA Pre-proposal Conference

Evaluation factors CLIN 0002

• Factor 1: Technical Capability

• Factor 2: Past Performance

• Factor 3: Price

• Factor 4: Socioeconomic Proposal

• Factor 5: AbilityOne Commitment Past Performance is the most important non-price evaluation factor and the socioeconomic proposal and AbilityOne commitment are the least important.

Technical capability is not as important as past performance, but is significantly more important than Socioeconomic and AbilityOne. When combined, all four of these evaluation factors are equally important as price.

Biomass Generation Facility PPA Pre-proposal Conference

• General Terms and Conditions

• 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

Terms and Conditions

Biomass Generation Facility PPA Pre-proposal Conference

• 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.

Proposal Submission, cont.

Biomass Generation Facility PPA Pre-proposal Conference

• RFP issuance: Dec 12, 2012

• Pre-proposal conference: Jan 24, 2013

• Cut-off for RFP questions: Feb 15, 2013

• RFP closing: Mar 15, 2013, 1500 EST

Milestones

Biomass Generation Facility PPA

• DLA Energy Installation Energy, Fort Belvoir, Va.

• John Nelson, 703.767.8523, john.nelson@dla.mil

• Bryan Simmons, 703.767.8531, bryan.simmons@dla.mil

• Brandon Budman, 703.767.8901, brandon.budman@dla.mil

Points of Contact mailto:john.nelson@dla.mil mailto:bryan.simmons@dla.mil mailto:brandon.budman@dla.mil

Biomass Generation Facility PPA Pre-proposal Conference

New York Utility and Interconnection Environment

Mr. Jerry Haenlin

Community and Customer Management - Northern Region

National Grid

Biomass Generation Facility PPA Pre-proposal Conference Utility Perspective

• Overview of National Grid

• Review existing electric service to the US

Army at Fort Drum

• Brief introduction to interconnect requirements for electricity generation

Biomass Generation Facility PPA Pre-proposal Conference National Grid Overview

• National Grid Plc – London, UK

• National Grid US – Waltham, MA

• National Grid NY

Biomass Generation Facility PPA

National Grid Overview

Biomass Generation Facility PPA Pre-proposal Conference Existing Service to Fort Drum

• Two transmission (115 kV) sources

• Metering

• On-Post electric system

Biomass Generation Facility PPA Pre-proposal Conference Interconnection Requirements

• ESB 750 series http://www.nationalgridus.com/niagaramohawk/construction/3_elec_s pecs.asp

(for general electrical specifications)

• ESB 756 – Parallel Generation http://www.nationalgridus.com/non_html/shared_constr_esb756.pdf

(specifically Appendix A for interconnections in NYS) http://www.nationalgridus.com/niagaramohawk/construction/3_elec_specs.asp http://www.nationalgridus.com/niagaramohawk/construction/3_elec_specs.asp http://www.nationalgridus.com/non_html/shared_constr_esb756.pdf

Biomass Generation Facility PPA

Interconnection Requirements

All parallel generator installations require an interconnection study, done at customer expense, to determine site-specific requirements, such as supply voltage, service arrangement, location, and generation intent (i.e., for internal use, sale, or combination)

Biomass Generation Facility PPA Pre-proposal Conference Interconnection Requirements

• Must comply with all local, state, and federal codes and national standards that apply, plus any NY ISO, NERC, FERC or any successor organizations

• Must also conform to any NYS Public Service Commission and any local, state, federal, and/or other agencies from which a review, approval, or permit is required

• The NY ISO shall coordinate the conduct of any studies required to determine the impact of the interconnect request

• A System Impact Study is required, which will include voltage level, MW and MVAR capacity

• Numerous other SIS requirements regarding submittals, studies, inspections, and procedural requirements are listed in ESB 756

Biomass Generation Facility PPA

Interconnection Integration Overview

Mr. Scott Kenner EITF, Support Contractor

Biomass Generation Facility PPA Pre-proposal Conference Substation 1 Overview

• Each substation has approximately 15 MW of load, a 28 MW project will require interconnecting the two substations

• Two transformers individually rated at 15 MVA

• The substation intertie could happen on the

13.2kV or the 115kV

• Will require specific equipment and design parameters in either process

• 115kV and 13.2kV capabilities with intertie to existing bus and distribution structure

Biomass Generation Facility PPA Pre-proposal Conference

National Grid Structure #28

Structure #1

National Grid T Pole

Incoming National Grid Power

Substation #1

South Substation

Biomass Generation Facility PPA Pre-proposal Conference Substation 2 Overview

• Two transformers individually rated at 15 MVA

• 115kV or 13.2kV distribution line to new greyfield location

• Will require specific equipment and design parameters in either process

• 115kV and 13.2kV capabilities with interconnection to existing bus and distribution structure

• Distance between the two substations is less than

4 miles

Biomass Generation Facility PPA Pre-proposal Conference

Substation #2

North Substation

Incoming National Grid Power

Biomass Generation Facility PPA Pre-proposal Conference

Transmission Route Possibilities

Biomass Generation Facility PPA Pre-proposal Conference Additional Interconnection Details

• Utilizing 10-year deal requirements:

– Connection not required behind the meter

– Developer must become an ESCO

• Utilizing up to 25-year deal requirements:

– Connection behind the meter

– Developer must become retailer

Biomass Generation Facility PPA Pre-proposal Conference

• Peggy’s Grab and Go

• Crystal Restaurant

• Cam’s Pizzeria

• Wing Wagon

• Subway

• Mr. Sub Sandwich Shop

• The Paddock Club

• Savory Downtown, BW Carriage House Inn

• Sandy’s Luncheonette

• Johnny D’s

Lunch Options within Walking Distance