AF_Geothermal_RFI_SP0600-16-0424.pdf

DLA Energy Request for Information – Air Force Geothermal Development

DLA Energy Request for Information – SP0600-16-0424 Page 1

This Request for Information (RFI) is for market research purposes. The Department of Air Force (AF) Air Force Civil Engineer Center (AFCEC), through the office of Defense Logistics Agency Energy (DLA Energy) is seeking capability information from interested parties concerning the matters described below. In accordance with FAR 15.201(e), responses to this RFI are not offers and cannot be accepted by the Government to form a binding contract. This RFI is issued solely for information and planning purposes and does not constitute a solicitation for proposals. Your response to this notice will be treated as information only.

All responses received may be held for an extended period of time or destroyed. In no case will any responses be returned to the originator. DLA Energy will not provide reimbursement for costs incurred in responding to this RFI as all costs associated with responding to this RFI will be the sole responsibility of the responding party. Respondents are advised that DLA Energy is under no obligation to acknowledge receipt of the information received or provide feedback to respondents with respect to any information submitted under this RFI. Responses to this RFI do not bind AFCEC or DLA Energy to any further actions related to this topic.

Background:

The AF is considering an energy procurement for AF installations for geothermal development for generation of power and heat for use by the Air Force. The North American Industry Classification Standard (NAICS) code for this RFI is 221116- Geothermal Electric Power Generation. The AF is exploring the possibility of utilizing geothermal generated power and/or heat to meet installation demand. The goal is to have all generated commodities at or below standard market fees for equal commodities for the duration of any contract. It is recognized the financial investment as well as regulatory and environmental permitting process for development and production of geothermal is unique. This RFI not only seeks potential or hybridized technologies, expected pricing, expected development sizing and resource availability, but risks to developers (and how the AF can aid to mitigate these risks) in the development and sustainment of a geothermal resource. Examples of these risks include, but are not limited to, resource confirmation, environmental permitting, land lease and sub-surface rights, well head permitting, system degradation and maintenance, impacts to surrounding lands, etc.

The AF prefers an on-site system with power or thermal attributes delivered behind the meter.

The developer is expected to assess the utility-grade geothermal and heat potential for use by several AF bases. In addition, assess the potential to partner with the local utilities to develop a larger system to reduce risk and take advantage of economy of scale. The new on-site generation must be conventional micro-grid ready in accordance with the requirements of IEEE 1547. The authority being utilized will fall under 10 USC §2922a, Contracts for energy or fuel for military installations, which authorizes contracts up to 30 years in length for the provisioning and operation of energy production facilities on private property and the purchase of energy produced from such facilities. The AF is interested in a potential firm fixed price contract for 30 years, including up to one year construction, with a production period of 29 years or a reasonable time frame for standard industry practices. Renewable Energy Credits (RECs) should be managed in a manner that maximizes the economic benefit to any proposed approach and these RECs may be retained by either the government or the developer, DLA Energy Request for Information – SP0600-16-0424 Page 2 whichever provides the greatest economic benefit.

The installations being considered under this RFI are Hill AFB located near Salt Lake City, Utah; Barksdale AFB located near Bossier City, Louisiana; Peterson AFB, US Air Force Academy, Schriever AFB located near Colorado Springs, Colorado, and Mountain Home AFB located near Mountain Home, Idaho. Other AF sites would be considered if resource availability and economics are more attractive. The total annual consumption requirement for all identified installations is estimated at 746,891 MWh with a total demand of about 131 MW.

The annual consumption requirement for each of the identified installations is as follows:

237,319 MWh for Hill AFB with approximate demand of 42 MW 82,701 MWh for Barksdale AFB with approximate demand of 15 MW 178,196 MWh for Peterson AFB with approximate demand of 31 MW 98,568 MWh for USAF Academy with approximate demand of 17 MW 91,332 MWh for Schriever AFB with approximate demand of 16 MW 58,775 MWh for Mountain Home AFB with approximate demand of 10 MW

Currently, all electrical energy is purchased from the local utility. Interested parties shall consider this geothermal purchase as a behind the meter project.

Description:

DLA Energy and the AF are requesting information concerning the potential feasibility of soliciting under a firm fixed price Renewable Energy Supply Agreement (RESA) for geothermal energy supplies that are developed on an installation for its use. Any necessary conventional energy component required to fulfill the difference between the on-site geothermal resource and the base’s full energy load would be based on the utility tariff including a portion hydropower that provides power to some AF facilities. The cost of heat will be based on the specific installations cost to produce. The Government is hoping to better understand whether industry is capable of meeting these requirements, for what term length, and if there are any challenges foreseen.

Information Requested

As permitted by FAR Part 10, the AF is requesting responses, comments, recommendations and suggestions to assist in the development of an acquisition strategy. The intent is to identify potential interested parties and collect information on any new renewable geothermal energy generation and/or heat that is economically attractive and feasible. The AF is also seeking information and insight from industry on the overall feasibility of this potential initiative. DLA Energy and AF hope to elicit maximum industry participation in response to this RFI so that the government may use the information obtained to perform the anticipated procurement in an efficient and timely manner.

The AF requests that respondents address each of the following areas:

1. DLA Energy and the AF are requesting insight from industry regarding the potential or hybridized innovative technologies and expected costs associated with a potential

DLA Energy Request for Information – SP0600-16-0424 Page 3 procurement of geothermal production for these AF facilities.

2. Interested in the location of the resource and any associated potential seismic activity, resource availability, surface land area requirements for placement of generating facility, potential environmental permitting requirements, surface and sub-surface rights.

3. The AF is seeking to understand the risk to the developer and how the AF can aid to mitigate these risks, in the development and sustainment of a geothermal resource.

4. AF is interested in better understanding the factors and/or regulations that affect how individual other market charges change over time.

5. Consider any archeological issues.

6. Identify the type of geothermal power plant proposed (flash, dry steam, binary, flash/binary, etc.).

7. Consider potential use of Direct Use Application where geothermal heat is used directly without involving a power plant or heat pump at aquifer temperatures between ~90˚F and 200˚F.

8. Are there considerations of tax credits and/or other incentives?

Submittal Requirements

The Government requests that interested and qualified firms submit a statement of interest on company letterhead demonstrating the firm’s qualifications to perform the defined work.

Responses should be complete and sufficiently detailed to address the specific information discussed herein. Responses should not exceed 30 single-sided pages, including all attachments.

In summary, the Government requests the following information from each respondent:

1. A Company Profile to include: (a) Name and address; (b) Brief description of firm including the year the firm was established and number of employees; and (c) Names of two points of contact (including title, telephone number and email addresses).

2. Detailed description of three projects of similar scope, in similar locality, completed within the last five years by the responding firm.

3. Description of your company’s experience working in geothermal market.

4. Information the U.S. Government should provide to prospective bidders in an RFP.

5. Answers to all of the questions in the Information Requested section.

6. Please provide e s t i m a t e d RESA cost estimates, $/kWh. These will only be used for

Government conceptual planning purposes. Do not provide detailed cost estimates.

We also encourage any additional information that would help to make a project of this scope viable to industry. We will consider all information submitted in response to this request for information.

Business Sensitive, Proprietary, Or Otherwise Confidential Information:

As information received in response to this RFI may be used to structure future solicitations, if your company chooses to submit any business sensitive, proprietary, or otherwise confidential

DLA Energy Request for Information – SP0600-16-0424 Page 4 information, it must be marked as proprietary or restricted data in the response. Information received from respondents will not be shared with any other respondent. Respondents will not be notified of the results of the market research. Response to this RFI is not required in order to respond to any future RFP that may follow, but information gathered through this RFI may influence RFP development.

Response Date and Time:

We appreciate your interest in advance in supporting the Government’s requirements. Interested parties must provide the requested information by 12:00 pm (noon) EST, September 2, 2016.

Emailed submissions are acceptable, shall not exceed 10MB and should be sent to dlaenergy.rteam@dla.mil.

Other contact information is as follows:

Primary point of contact:

DLA Energy Attn: Andrea Kincaid John J. Kingman Road Suite 3827 Fort Belvoir, VA 22060-6222 EMAIL: andrea.kincaid@dla.mil

Secondary Point of Contact:

DLA Energy Attn: Callie Lake John J. Kingman Road Suite 3827 Fort Belvoir, VA 22060-6222 EMAIL: callie.lake@dla.mil