PWS_Section_C.pdf

PERFORMANCE WORK STATEMENT

Vision Statement The Army seeks to procure sustainable steam and renewably generated electricity to provide energy security and price stability for the Redstone Arsenal (RSA) and to meet statutory renewable energy goals.

C.1 Objective C.1.1 The objective is to procure reliable, renewable, locally-generated electricity and steam from a contractor-constructed and operated combined heat and power (CHP) plant (also known as the Renewable Energy Generation Facility (REGF) on RSA property leased to the contractor. Municipal Solid Waste (MSW) Feedstock may not be brought onto RSA property. The REGF shall provide 100% of the RSA’s steam requirements and not less than the Minimum Annual Electric Purchase Quantity generated from renewable energy feedstock.

C.1.2 REGF Introduction RSA is a 38,125 Acre facility located in Northern Alabama with 25,860 Test Area Acres and 3,000 Buildable Acres.

There are 19 Million square feet of Building space. RSA is comprised of four major zones: Residential Zone, City Center, Professional Zone, and the Industrial Zone. RSA currently procures steam from the City of Huntsville’s Solid Waste Disposal Authority (SWDA) and uses the steam received to heat, cool, supply process equipment, and provide domestic hot water to 3.3 million square feet of buildings. RSA currently procures all of its electricity from the Tennessee Valley Authority (TVA).

The Contractor shall deliver electricity to the Electrical Point of Common Coupling (EPCC) and steam to the Steam Point of Common Coupling (SPCC). The Army will not acquire any electricity or steam generation assets.

Electrical distribution equipment beyond the EPCC shall be designed, installed, and commissioned by the contractor and accepted and maintained by the Government.

TVA provides electrical service to RSA through two transmission supplies onto the installation. The power distribution system beyond the Electric Distribution Company (EDC) point of common coupling (PCC) comprised of transformers, switches, poles, wires, and other, is owned and operated by RSA.

The SWDA Waste-to-Energy (WTE) facility is located at 5251 Triana Blvd., Huntsville AL and provides steam to RSA with its 690 tons per day municipal solid waste system. SWDA generates steam through incineration of MSW supplied from the regional area. The MSW is considered a renewable energy source. The system utilizes two mass-burn furnaces with temperatures that exceed 2000 degrees Fahrenheit. The steam that is produced is distributed through the SWDA owned steam distribution system located on RSA. RSA will continue to procure steam from SWDA until the Contractor facility becomes operational.

The selected Contractor shall develop, finance, design, build, operate, own and maintain the REGF. The Army will procure electricity and steam during the Operating Period in accordance with the authority of 10 United States Code (U.S.C.) § 2922a. The REGF shall be located on the site defined in Section J, Lease Exhibit B-2 – REGF Project Site Map.

C.2 General Definitions Annual Steam Rate (ASR). The ASR means the unit cost in dollars per thousand pounds of steam (klb) during a Fiscal Year.

Black Start Capability. Black Start Capability is the ability for the CHP plant to power itself on and reach full operational capability in the absence of grid-connected power.

CLIN. CLIN stands for contract line item number. The CLIN includes a description of the item or service being procured, unit price, quantity, a unit of measure, total price, and the delivery schedule or performance period.

Commercial Operation Date (COD). This is the day on which the Contractor has completed Commissioning and Systems Acceptance Testing (SAT) and begins to deliver Energy at the Steam Point of Common Coupling (SPCC) and the Electrical Point of Common Coupling (EPCC).

Construction. Construction means all engineering, procurement, building, installation, and any ancillary work related thereto, by the Contractor required to complete the REGF and enable system commissioning.

Contractor’s Completion Notice. The Contractor’s Completion Notice is a written document prepared by the Contractor and submitted to the Contracting Officer (KO) upon successful completion of the REGF commissioning (see definition, below).

Contract Term: The period of performance shall commence on the date of contract award and continue for a period of 30 years in accordance with the 10 U.S.C. § 2922a; to include construction, operation, and decommissioning/restoration.

Days. Days as used in this Contract mean calendar days unless otherwise noted.

Electric Energy Payment (EEP). The EEP is the monthly payment for electric energy and is the product of the kWhs produced and delivered to the EPCC (see definition, below) in a given month.

Electrical Distribution System. Electrical Distribution System is the above and below-ground equipment and infrastructure that distributes electrical power throughout the Installation from the EPCC.

Electrical Point of Common Coupling (EPCC). The EPCC is the point in the electrical system where multiple electrical loads and generation sources combine, and is accessible for direct measurement to the Utility Distribution Company, the Contractor, and Government, per Institute of Electrical and Electronics Engineers (IEEE)-519. As contained in Section J, Lease Exhibit B-3 – Electric Interconnection; PWS Appendix 1 – CHP North Interconnection Detail; PWS Appendix 2 – CHP South Interconnection Detail; PWS Appendix 3 – RSA CHP One-Line Diagram; PWS Appendix 4 – REGF Electric Interconnect Overview and PWS Appendix 5 – CHP North Interconnection provide an overview, detailed view and One-Line Diagram of the expected REGF electric interconnection.

Energy. Energy means the steam and/or electricity generated by the REGF and delivered to the Government at the SPCC and/or EPCC pursuant to this Contract, and measured in units of kilowatt hours (kWh) or Megawatt hours (MWh) for electricity and thousand pounds per hour (klbs/hr) for steam.

Equipment. Equipment means tangible assets that are functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract. Equipment is not intended for sale, and does not ordinarily lose its identity or become a component part of another article when put into use.

Facilities. Facilities are Government buildings, structures and equipment where Energy is consumed and/or generated. The Facilities include those structures, buildings and equipment constructed in the future on the Installation.

Feedstock Energy. Feedstock Energy means the input energy derived from a renewable fuel source for utilization by the REGF during normal operations to generate the steam and electrical requirements.

Fiscal Year (FY). The Federal FY is defined as 01 Oct to 30 Sep. For example, FY 2012 is defined as 01 Oct 2011 to 30 Sep 2012.

Government. Government means the United States Department of the Army acting through the Installation Commander, US Army Garrison, or the relevant acquisition activity. For all contract matters, the Government officials shall act through the Contracting Officer.

Governmental Authority. Means any federal, state, regional, county, town, city, or municipal Government, whether domestic or foreign; or any department, agency, bureau, or other administrative, regulatory or judicial body of any such Government.

Grid Outage. A short or long-term loss of electric power to the area, preventing electricity delivery by the TVA to

RSA.

Implementation Plan. A Contractor generated plan that contains the following: engineering, procurement of materials, construction, installation of meters required for utility billing, interconnection approach, meter readings, billing responsibilities, equipment maintenance plan, efficiency and performance monitoring systems, commissioning and testing. The implementation plan shall also show existing structures, including the existing substations and surrounding buildings.

Initial Production Period. Means the period of time commencing on the Commercial Operation Date and ending on the last day of the Fiscal Year (September 30th).

Installation. Installation means the land, infrastructure and facilities under the jurisdiction and control of the Secretary of the Army at RSA.

Interconnection. Means the point of physical connection between multiple electrical loads and generation sources.

It is also the point for direct measurement of the Energy flowing through the connection. The Interconnection may be between the REGF and the Installation electric system infrastructure, and between the REGF and the Utility Distribution Company (defined below). The Interconnection between the REGF and the Utility Distribution Company is a multi-step process that is documented by an Interconnection Agreement.

Interconnection Agreement. Means the business contract between the Contractor and the Utility Distribution Company or the Installation for the purpose of interconnecting the REGF power sources to the Utility Distribution Company’s in-coming electrical service to the Installation. The Interconnection Agreement is initiated through an application to the Utility Distribution Company.

Interconnection Application. Means the process by which an Interconnection Agreement is initiated. The application may be made by the Installation or the REGF owner, as appropriate.

kWh. Means kilo-watt hours and is the unit of electrical consumption as measured at an electric meter.

Klbs steam. klbs is defined as one thousand pounds (lbs) of steam measured at the SPCC at the specified steam conditions.

Lessee. The entity that will sign the Outgrant Agreement with the Government and in all cases shall be the Contractor.

Material. Material means property that may be consumed or expended during the performance of a contract, component parts of a higher assembly, or items that lose their individual identity through incorporation into an end-item. Material does not include equipment, special tooling and special test equipment.

Micro-grid. Micro-grid means a group of interconnected loads and distributed energy resources with clearly defined electrical boundaries that acts as a single controllable entity with respect to the transmission or distribution grid and can connect and disconnect from the transmission or distribution grid to enable it to operate in both grid-connected or island mode.

Minimum Annual Electric Purchase Quantity: The Minimum Annual Electric Purchase Quantity represents the minimum annual purchase obligation by the Government. Such minimum quantity shall not be less than 160,000,000 kWh annually and shall be derived from Feedstock Energy.

Minimum Annual Steam Purchase Quantity. The Minimum Annual Steam Purchase Quantity will be 380,000 klbs of steam multiplied by the Steam Availability Factor during any Fiscal Year and represents the minimum annual purchase obligation by the Government.

MW. A Megawatt is equal to 1,000 kilowatts and is a unit of instantaneous electric demand.

MWh. MWh is defined as a megawatt per hour and is equal to 1,000 kWhs. MWh is a unit of electrical energy.

Non-Energy Attributes. Non-Energy Attributes, also called Environmental Attributes, mean any and all credits, benefits, emissions reductions, environmental air quality credits, emissions reduction credits, renewable energy credits, offsets and allowances, attributable to a Qualifying Resource, in accordance with the Energy Independence and Security Act of 2007, or otherwise attributable to the generation, purchase, sale, or use of electrical energy from a Qualifying Resource during the term, howsoever entitled or named, resulting from the avoidance, reduction, displacement, or offset of the emission of any gas, chemical, or other substance, including any of the same arising out of legislation or regulation concerned. These include: 1) any avoided, displaced or off-set air, soil or water pollutant emissions such as sulfur oxides, nitrogen oxides, carbon monoxide, and other pollutants, 2) gases such as methane, carbon dioxide and other greenhouse gases, and 3) the reporting rights related to these avoided emissions.

Offeror. The Offeror is an entity that responds to this RFP.

Operating Period. The period during which steam and electricity will be generated by the REGF, commencing on the Commercial Operation Date and continuing to the start of plant decommissioning.

Out-Grant Agreement. Means the Government real estate instrument associated with the Contract that documents the Contractor’s authority to use Army real property assets for the purpose of developing, financing, designing, constructing, owning, operating and maintaining the REGF over the term of the Contract. The primary real estate instrument will be a lease. Other real estate instruments (i.e. a license or an easement) may also be issued in conjunction with this Contract. The authority to lease is granted in 10 U.S.C. § U.S.C. §2667 (reporting requirements are provided in 10 U.S.C. § U.S.C. §2662); the authority to issue an easement is granted in 10 U.S.C.

§U.S.C. § 2668; and the authority to enter into a license is granted under the general administrative powers of the military secretaries.

Power Factor. Means the ratio of the real power flowing to the load to the apparent power in the circuit. It is a dimensionless number between 0 and 1. Real power is the capacity of the circuit for performing work at a particular time.

Plan of Finance. The Plan of Finance describes the Contractor’s financial strength and experience in undertaking the planned financing as reflected in the Contractor’s proposal submission. It is expected that the Plan of Finance will be updated prior to contract award. The Plan of Finance presents a detailed analysis of the construction and performance-related risks associated with the project and safeguards/risk mitigation strategies to be employed.

Specific elements include: (1) a list of all proposed sources of funding and credit enhancement, if any, by provider, aggregate amount and type, including a schedule showing the expected amount and timing of disbursements; (2) the identification of the terms of the Applicant’s debt and equity financing sources, which include the conditions precedent to closing and funding; (3) quarterly sources and uses of funds statement for the construction period, prepared in US GAAP, showing the timing and amount of expected equity and debt funding by institution; and (4) a financial model, developed using Microsoft Excel and submitted in electronic format that, at a minimum, includes worksheets containing key assumptions, sources and uses, and pro forma financial statements, including income statements, balance sheets and statements of cashflows presented on an annual or quarterly basis.

REGF Commissioning. The process of testing and assessing whether the REGF systems and performance of the REGF are in accordance with the requirements of Section E.1.c Project Commissioning and Systems Acceptance Testing, to ensure that all components and the REGF, as a whole, are performing as specified. REGF Commissioning is complete upon written acceptance of the Contractors Completion Notice.

REGF Site. The parcel of real property, as depicted in Section J, Lease Exhibit B-2, on which the REGF will be located, including any leases, licenses, easements, rights of way or other interests in real property granted to the Contractor by the Government and necessary for the implementation and operation of the REGF. The out-grant agreement is included in Section J, Lease Template.

RSA. RSA means Redstone Arsenal, Alabama.

Renewable Energy. Renewable Energy means energy generated from solar, wind, biomass, landfill gas, ocean (including tidal, wave, current, and thermal), geothermal (including electricity and heat pumps), municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity.

Renewable Energy Certificates (or Credits) (RECs). RECs mean the documents which represent and are used to account for the renewable and non-energy (environmental) attributes of energy generated from renewable sources, and are used as evidence of the ownership of renewable and environmental attributes for the purposes of compliance with a Renewable Energy Standard or to meet other state or federal mandates or goals. For electrical energy, RECs are usually accounted for and measured in 1 megawatt-hour (MWh) units. RECs are also commonly known as green tags, green energy certificates, or tradable renewable energy certificates. For avoidance of doubt, RECs exclude tax credits and tax benefits, including cash grants such as the 1603 Treasury Grant.

Replacement RECs. Replacement RECs are RECs purchased or exchanged to replace RECs generated by the REGF. Replacement RECs must be generated from renewable energy, as defined above, and are not required to be generated by the same technology as are the RECs as generated by the REGF.

Renewable Energy Generating Facility (REGF). The REGF is defined as a Renewable Energy Feedstock CHP facility.

Stand-by Charges: Stand-by Charges are monetary charges, including, but not limited to, administrative fees, reservation charges and prescheduled and emergency demand use and incremental energy charges, assessed by TVA under the Redstone Arsenal Firm Power Contract to provide firm capacity in case of REGF outages.

Steam Point of Common Coupling (SPCC). The SPCC is defined as the point where the REGF Contractor will connect its steam and condensate lines for delivery of steam to RSA. The SPCC is defined as the existing Steam Meter Point B as indicated in Section J, Lease Exhibit B-1 – Steam Interconnect Map.

Steam Availability Factor. For any given period of performance, the Steam Availability Factor is defined as the number of hours that the REGF is operating and available to produce steam divided the hours during the period of performance.

Steam Distribution System. Steam Distribution System is the above and below-ground equipment and infrastructure that distributes steam throughout the Installation from the SPCC.

SWDA. SWDA is the Solid Waste Disposal Authority operating as a Non-profit Corporation under the City of Huntsville, AL.

Termination Value. The negotiated cost settlement associated with terminating the REGF that is found in Termination Value Schedule.

Termination Value Schedule. The Termination Value Schedule includes Termination Values incurred as a result of a Termination for Convenience. The Termination Value Schedule shall be negotiated and reconciled in accordance with FAR 52.241-10 paragraphs (a) through (f) and FAR 52.249-2 paragraphs (a) through (n).

Total Offered Electricity Quantity. The Total Offered Electricity Quantity reflects the sum of the Offeror proposed Minimum Annual Electric Purchase Quantity and all additional quantities of electricity proposed by the Offeror, up to a requirement to maintain a minimum instantaneous demand of 2 MW of power, drawn from the

UDC.

Utility Distribution Company (UDC). The UDC is the wholesale electric provider which provides electricity at a sub-transmission level voltage and operates the commercial, electric distribution system and provides the transmission, distribution and interconnection services to the Installation. The UDC is Tennessee Valley Authority

(TVA).

Work. Work means all engineering, procurement and construction of the REGF necessary to meet the requirements of REGF commissioning in preparation for the Commercial Operation Date.

C.3 Land-Use Authority The use of Army land for the REGF Site is authorized in accordance with 10 U.S.C. §U.S.C. § 2922a and documented in this Contract through the authority granted in 10 U.S.C. §U.S.C. § 2667 as referenced in the Out-

Grant Agreement, included in Section J, Lease Template. The out grant agreement(s) shall take precedence over the contract.

Applicable ISO/RTO: NOT APPLICABLE Applicable NERC/Region: SERC Utility Service Area: Tennessee Valley Authority Utility Distribution Company (UDC): Tennessee Valley Authority

C.4 Relevant Authorities

• 10 U.S.C. § 2922a, "Contracts for energy or fuel for military installations.

• 10 U.S.C. § 2667, "Leases: non-excess property of military departments and defense agencies.

• 10 U.S.C. § 2668, "Easements for rights-of-way.

• AR 420-1, para. 23-9e, "Army Facilities Management". Note: this regulation prohibits the use of an Army-owned and operated MSW facility as a municipal or regional Municipal Solid Waste (MSW) facility or as a MSW facility for surrounding communities, unless operated under an approved Enhanced Use Lease type agreement.

C.5 Steam Procurement C.5.1 Government Obligation to Procure Steam The Government will pay the Contractor for not less than the Minimum Annual Steam Purchase Quantity (380,000 klbs) for each Fiscal Year or portion thereof during the Operating Period, provided the REGF meets the contractual requirements for steam production, availability and maximum peak load for each month of the Fiscal Year as described in Section C.9.7.1. If the contractor produces in excess of the monthly projected steam consumption presented in Section C.9.7.1, Table 1 and the excess steam is consumed by RSA, the government will pay the contractor at the then applicable steam rate for the amount of steam consumed. This minimum will be prorated during the Initial Production Period, based on RSA’s steam load profile, including RSA’s maximum hourly steam consumption rate as set forth in Section C.9.7.1, Table 1. Payments for steam will be paid on a monthly basis for steam delivered to and consumed by the Government.

C.5.2 Condensate Return Condensate will be returned to the REGF. It is estimated that 60% of the steam provided will be returned to the REGF as condensate. A monthly adjustment will be made to the steam payment to reflect any variance from this value. Condensate above or below 60% return shall be valued at 10% of the ASR.

C.6 Electricity Procurement C.6.1 Government Obligation to Procure Electricity The Government will procure not less than the Minimum Annual Electric Purchase Quantity each Fiscal Year of the Operating Period at the electric unit rate proposed in Section B.2, CLIN 0002. Payments for electricity will be paid on a monthly basis. The REGF will function as a base load electrical generation facility for RSA, and the Contractor may use all available steam for electric generation as long as it can meet RSA’s monthly projected steam consumption and maximum hourly steam load requirements as set forth in Section C.9.7.1. If the Government consumes amounts in excess of the Minimum Annual Electric Purchase Quantity it will pay the Contractor at the electricity rate then in effect as set forth in Section J, RFP Attachment 2.

C.6.2 Performance of the REGF and Notice to the Contractor The Contractor shall maintain the REGF to be capable of producing the Minimum Annual Steam Purchase Quantity and the Minimum Annual Electric Purchase Quantity over the term of the contract. If the Contractor fails, due to a non-Force Majeure event, to produce and deliver to the Government 90% of the Minimum Annual Steam Purchase Quantity or 90% of the Contractor proposed Minimum Annual Electric Purchase Quantity during a Fiscal Year or 90% of the Contractor proposed Total Offered Electricity Quantity, the Contractor will be subject to FAR 52.249-8 -

- Default (Fixed-Price Supply and Service) - This clause is already included in the contract. The section that discusses timelines says "The Government's right to terminate this contract under subdivisions (a)(1)(ii) and (1)(iii) of this clause, may be exercised if the Contractor does not cure such failure within 10 days (or more if authorized in writing by the Contracting Officer) after receipt of the notice from the Contracting Officer specifying the failure."

C.7 Contract Term The Contract term shall not exceed a total of 30 years, consisting of a construction period, an Operating Period, and a decommissioning / restoration period. REGF operation shall commence no later than 3 years after contract award. The Government shall procure energy as described herein starting on the Commercial Operation Date (COD) and extending for the remainder of the Operating Period. It is estimated that 3 years will be required for construction of the REGF, and 26.5 years of energy production followed by six months for site decommissioning/ restoration. If the REGF can be constructed in less than 3 years, the Operating Period may be increased. For example, if the REGF can be constructed in 2.5 years, the energy production period would be 27 years.

C.8 Service Interruptions The Contractor may discontinue the supply of Energy to the Government if a hazardous condition exists that: a) causes the REGF or Point of Common Coupling to become dangerous to the life or safety of people; b) risks damage to the Government’s equipment and utility infrastructure; c) poses a threat of imminent danger or harm to the Contractor's equipment or personnel; d) requires immediate action to protect persons from harm or bodily injury.

Such interruption shall continue until the condition has been corrected.

C.9 REGF Requirements The following section specifies the Performance Objectives and Performance Elements for the contract.

C.9.1 Compliance Standards.

The REGF shall conform to industry standards as set forth by ASTM (American Society for Testing and Materials), IEEE (Institute of Electrical and Electronics Engineers), IEC (International Electrotechnical Commission), UL (Underwriters Laboratories), UFC (Unified Facilities) Code and NEC (National Electric Code). The Provider shall comply with the most current version of all safety and health standards applicable to the work to be performed including, but not limited to:

• Air-Conditioning and Refrigeration Institute (ARI)

• American Institute of Architects (AIA) Masterspec

• American National Standards Institute (ANSI)

• ANSI C84.1-2011 Electric Power Systems and Equipment – Voltage Ratings

• ANSI C37 Disconnect switches & Circuit Breakers

• ANSI C62.2 Surge Arrestors

• ANSI C12.1 Code for Electricity Metering

• Standard Requirements for Instrument Transformers - ANSI / IEEE C57.13

• American Society for Testing and Materials (ASTM)

• American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE);

• 189.1 Section 7.3.2 (On-Site Renewable Energy Systems)

• American Society of Mechanical Engineers (ASME)

• ASME B-31.1 Power Piping Design and Fabrication

• Code of Federal Regulations (CFR);

• 10 CFR 435, Energy Conservation Voluntary Performance Standards for Commercial and Multi-Family

High Rise Residential Buildings

• 29 CFR 1904 Recording and Reporting Occupational Injuries and Illnesses;

• 29 CFR 1910 Occupational Safety and Health Standards and ACGIH Threshold Limit Values for Chemical

Substances and Physical Agents and Biological Exposure Indices;

• 29 CFR 1926 Safety and Health Regulations for Construction;

• Department of the Army Chief of Engineers – Interim Guidance on the Calculation of Rates for the Sale of

Utilities Services and Utilities Contracts Invoicing/Billing, 1 November

• Department of the Army Pamphlet (DA-PAM)

• AR 385-40 Safety - Army Accident Investigations and Reporting

• AR 385-64 Safety - Ammunition and Explosives Safety Standards

• Department of the Army Regulation (AR)

• AR 25-2 Information Management - Information Assurance, 24 October 2007, RAR 23 March 2009

• AR 385-1 and EM 385-1-1 Safety Standards

• AR 385-10 Safety - The Army Safety Program

• AR 420-1 Army Facilities Management

• AR 420-41 Acquisition and Sales of Utilities Services

• DoD Antiterrorism Standards for Buildings

• EM 385-1-1 Safety and Health Requirements Manual

• Illuminating Engineering Society of North America (IESNA)

• International Building Code (IBC)

• International Electrotechnical Commission (IEC)

• Institute of Electrical and Electronics Engineers (IEEE)

• IEEE 399-1997 - IEEE Brown Book IEEE Recommended Practice for Industrial and Commercial Power

System Analysis

• IEEE 519-1992 - IEEE Recommended Practices and Requirements for Harmonic Control in Electrical

Power Systems

• IEEE 1159.3 - IEEE Recommended Practice for the Transfer of Power Quality Data

• IEEE 1159-2009 - IEEE Recommended Practice for Monitoring Electric Power Quality

• IEEE 1159.3-2003 - IEEE Recommended Practice for the Transfer of Power Quality Data

• IEEE 1453-2004 Recommended Practice for Measurement and Limits of Voltage Fluctuation and

Associated Light Flicker on AC Power Systems

• IEEE 1547-2003 - Standard for Interconnecting Distributed Resources with Electric Power Systems

• IEEE 1547.1-2005 - IEEE Standard Conformance Test Procedures for Equipment Interconnecting

Distributed Resources with Electric Power Systems

• IEEE 1547.2-2008 - IEEE Application Guide for IEEE Std 1547(TM), IEEE Standard for Interconnecting

Distributed Resources with Electric Power Systems

• IEEE 1547.3-2007 - IEEE Guide for Monitoring, Information Exchange, and Control of Distributed

Resources Interconnected with Electric Power Systems

• IEEE 1547.4-2011 - IEEE Guide for Design, Operation, and Integration of Distributed Resource Island

Systems with Electric Power Systems

• IEEE 1547.7-2013 - IEEE Guide for Conducting Distribution Impact Studies for Distributed Resource

Interconnection

• IEEE P1547.8 - Recommended Practice for Establishing Methods and Procedures that Provide

Supplemental Support for Implementation Strategies for Expanded Use of IEEE Standard 1547

• Local City and County Building Codes;

• National Electric Code (NEC);

• National Electrical Manufacturers Association (NEMA)

• National Electrical Safety Code (NESC);

• National Fire Protection Association (NFPA) Standards;

• NFPA 70 National Electrical Code;

• NFPA 70E Standard for Electrical Safety in the Workplace;

• NFPA 101 - Life Safety Code

• National Institute of Standards and Technology (NIST)

• Guidelines for Smart Grid Cyber Security, NISTIR 7628, Volumes 1-3

• Special Publication 800-82 Guide to Industrial Control Systems (ICS) Security

• North American Electric Reliability Corporation – Reliability and Data

• Resource and Demand Balancing

• Communications

• Critical Infrastructure Protection

• Demand Response Availability Data System

• Emergency Preparedness and Operations

• Facilities Design, Connections, and Maintenance

• Interchange Scheduling and Coordination

• Interconnection Reliability Operations and Coordination

• Modeling, Data, and Analysis

• Personnel Performance, Training, and Qualifications

• Protection and Control

• Transmission Operations

• Transmission Planning

• Voltage and Reactive

• Occupational Safety and Health Administration (OSHA) regulations

• OSHA 29 CFR 1910.147, Control of Hazardous Energy (Lockout/Tag out);

• OSHA 29 CFR 1910, Subpart S – Electrical;

• Underwriters Laboratory (UL);

• UL 1741, Inverters, Converters, Controllers and Interconnection System Equipment for Use With

Distributed Energy Resources

• Unified Facilities Criteria (UFC)

• UFC 1-200-02 High Performance and Sustainable Building Requirements

• UFC 3-210-10 Low Impact Development

• UFC 3-450-01 Noise and Vibration Control

• UFC 3-550-01 Exterior Electrical Power Distribution

• UFC 3-600-01 Fire Protection Engineering for Facilities

• UFC 3-600-01 O&M: Inspection, Testing, and Maintenance of Fire Protection Systems

• UFC 4-010-01 Design: DoD Minimum Antiterrorism Standards for Buildings

• UFC 4-020-04A Electronic Security Systems: Security Engineering

• UFC 4-021-01 Design and O&M: Mass Notification Systems

• Uniform Plumbing Code (UPC)

C.9.1.1 Design Drawings and Implementation Plan The Contractor shall provide design documentation at 98% level of completion. The design shall include appropriately detailed project schedule and implementation plan commensurate with the design level completed.

The final design shall be provided not later than 60 calendar days prior to the start of construction.

• 98 % Design Submission (Final) − Written response addressing all the reviewers comments to the 60% Conceptual Design Submission − Complete coordinated installation/construction CAD (Ready for Bidding) − Complete on-drawing or attached Letter (8.5”x11”) format installation/construction specifications (Ready for Bidding) − Bill of materials − Component specifications − Equipment manuals − Final Schedule − Complete system analysis model − Complete test and commissioning plans

Upon any Government directed change to a critical path item a new schedule and implementation plan shall be provided within 30 calendar days.

C.9.2 Real Estate The Contractor shall enter into a real estate instrument(s) with the Government for up to 5-acres within the identified site and ingress and egress to the site.

C.9.2.1 The lease expiration shall be concurrent with contract end date.

C.9.2.1.1The Contractor shall follow decommissioning requirements at the end of lease term as identified in the lease agreement through a follow-on license.

C.9.3 In accordance with physical security requirements of RSA as identified Uniform Facilities Criteria 4-010-03, "Security: Engineering and Physical Security" the Contractor shall install and maintain physical security measures for the CHP facility.

C.9.4 The Contractor shall obtain an excavation permit prior to engaging in any intrusive work on RSA.

The Contractor shall obtain permits from the Director of Public Works (DPW).

C.9.5 The Contractor shall follow all proper access control procedures for RSA.

Contractors shall obtain badges from Installation security as required, at no charge to the contractor. When an employee leaves the Contractor's service, the employee's badge shall be returned immediately. In the event the badge is lost or stolen, the Contractors employee(s) shall report the incident to the Installation’s security office.

C.9.6 The Contractor shall supply a renewable energy feedstock source for the CHP facility For the duration of the performance period, the Contractor shall utilize renewable energy feedstock material in the normal operations of the REGF to maintain the minimum requirements for steam and electricity. The Contractor shall provide to the COR copies of renewable energy feedstock source contracts not later than 30 calendar days prior to COD and annually thereafter.

C.9.7 The Contractor shall provide Steam for RSA.

The Contractor shall operate and maintain the REGF to be available on a daily basis to provide for the steam and electricity requirements of RSA as described in Section C.1.

C.9.7.1 The Contractor shall maintain steam quality The Contractor shall design, construct and operate the REGF to provide RSA steam at the SPCC to meet the installation’s monthly projected consumption and monthly peak hourly steam loads. Table 1 provides RSA’s Monthly Steam Requirements.

Table 1: Monthly Steam Requirements

Steam shall be dry and saturated at a nominal 200 psig, and 388 degrees Fahrenheit. Steam composition must meet quality assurance requirements as outlined in the Table 1 provided in Section C.9.7.6. Contractor must maintain a 100 percent Steam Availability Factor throughout the year.

In the event of steam system interruption (non-performance to the standard outlined), the Contractor shall credit RSA for the lost steam at the ASR. The quantity of steam used in accounting for the credit shall be calculated by multiplying the hours of non-performance by the average steam flow during the previous 48 hours prior to the outage.

30,376 68,489 Oct 37,468 86,653 Nov 41,573 85,570 Dec 45,377 89,390 Jan 41,318 91,793 Feb 37,911 89,705 Mar 28,127 61,376 Apr 23,608 47,684 May 23,644 45,268 Jun 25,213 49,816 Jul 23,338 45,948 Aug 22,046 41,264 Sep

380,000 91,793

Monthly Projected RSA Steam

Consumption (klbs)

Monthly Maximum Peak

Steam Load Month

C.9.7.2 The Contractor shall install steam transport infrastructure for interconnection with the existing RSA steam distribution system.

The Contractor shall provide the design, installation, commissioning, and maintenance necessary to provide the required steam to the meter located at the SPCC. Contractor will ensure safe and secure installation and operation without causing damage to existing infrastructure. Contractor shall provide an interconnection plan to minimize the anticipated steam outage. The Contractor shall provide an Interconnection Plan for Government approval 30 days prior to the scheduled start of construction. The Contractor shall provide the Interconnection Design, which includes the design, specifications, and pipe stress analysis for government review and approval 30 days prior to the scheduled start of construction.

Existing steam lines from SWDA’s WTE plant to the SPCC are owned by SWDA. If agreed upon by SWDA, the REGF may interconnect with the SWDA-owned steam distribution line or tie directly to the SPCC in a new right of way adjacent to existing SWDA steam line as indicated in Section J, Lease Exhibit B-1. Contractor shall coordinate with and secure any and all use permits that may be required from SWDA if the Contractor plans to tie-in to SWDA’s steam lines. The cost of such connections will be paid for by the Contractor. The Contractor shall ensure that its equipment is capable of withstanding steam influencing factors (i.e., temperature and pressure control, condensate, pipeline maintenance) which are external to the REGF.

C.9.7.3 The Contractor shall install condensate transport infrastructure for interconnection with the existing RSA steam distribution system.

The Contractor shall provide the design, installation, commissioning, and maintenance necessary to provide the condensate transport infrastructure located at the SPCC. Contractor will ensure safe and secure installation and operation without causing damage to existing infrastructure. The Contractor shall provide an interconnection plan to minimize the anticipated condensate transportation outage.

C.9.7.4 The Contractor shall provide, install, and maintain a utility grade advanced meter at the SPCC.

The Contractor shall provide and install a steam meter and a condensate meter with continuous metering capability throughout the contract period at the SPCC (meter point B). Meters shall be utility grade advanced metering equipment of standard manufacture. Steam meter shall support interval metering for energy and demand capable of registering entries every 30 minutes. Condensate meter shall support interval metering of volume capable of registering entries every 30 minutes. Meters shall provide a continuous supply of advanced metering interval data to the Government’s system for monitoring and data acquisition (refer to Section I, FAR 52.241-6 Service Provisions).

Meter reading output data shall be synchronized with TVA time stamp. All communication infrastructure shall meet the information assurance and cyber security requirements outlined in Section C.13. The Contractor shall provide a Billing Meter Report no later than 10 days into the following year that provides the usage analysis and conditions report including 30 minute electric interval data synchronized with TVA billing meters.

C.9.7.5 Steam/Condensate Meter Calibration The Contractor shall calibrate the steam meter(s) prior to COD and at intervals of no longer than 12 months. At the written request of the Contracting Officer’s Representative (COR), the Contractor shall make additional test of any or all meters with Government witness and shall ensure continuous measurement at all times.

No meter shall be in service if meter calibration registers in excess of 100% flow under manufacturer’s recommended operating conditions. Meters shall be installed, operated, and maintained in accordance with parameters provided in Section J, PWS Appendix 9 – Advanced Meter Specifications. Meter reading output data shall be synchronized with the UDC provider time. The Contractor shall provide the Meter Calibration Report no later than 10 calendar days into the following year or upon receipt of calibration report. Report shall include the diagnostic analysis of the meter and calibration certificate provided by the quality assurance laboratory utilized to calibrate the meter.

C.9.7.6 Steam Composition The steam furnished shall contain no more than one percent moisture and shall be free of condensation at the point of delivery. The quality of steam delivered shall conform to the American Boiler Manufacturers Association (ABMA) recommendations for boiler water limits provided in Table below. To ensure compatibility of the boiler feed water treatment introduced by the Contractor with the existing system of RSA, the following data is furnished:

Treatment medium shall consist of a neutralizing amine or similar agent. The chemical must be fed into the steam to be delivered. The amines are carried into the steam distribution system for purpose of corrosion protection of the steam and condensate lines and associated heat exchange equipment. Neutralizing amines increase the pH of the condensate to act as a protective barrier against carbon dioxide attack. This will reduce the iron and copper content of the condensate and will minimize deposits in the boiler.

The Contractor shall provide a Monthly Steam Report that shall contain information on outages, monthly usage, cumulative usage to date, steam composition per requirements in Section C.9.7.1, Table 1, any steam quality discrepancies, condensate return percentage, comparisons to previous years' data by corresponding month, and a projection for remaining Fiscal Year usage based on previous years' data. Reports will be maintained and accessible to the Government for the duration of the contract. The report shall be provided not later than the 10th calendar day of the following month.

The Contractor shall provide an Annual Steam Report that shall contain information on outages, annual usage, cumulative usage to date, steam composition per requirements in Table 1, any steam quality discrepancies, comparisons to previous years' aggregate data, and a summary reconciliation of minimum procurement requirement.

Reports will be maintained and accessible to the Government for the duration of the contract. The report shall be provided no later than 10 calendar days into the following year.

A Quality Control Plan is required to be submitted as part of the solicitation for this RFP. The Contractor shall maintain and update the Quality Control Plan as required to maintain a quality operation.

Table 2 Steam Quality Requirements

Drum pressure, psig

Total dissolved solidsa in boiler water, ppm (max.)

Total Alkalinityb in boiler water, ppm

Suspended solids in boiler water, ppm (max.)

Total dissolved solidsb,d in steam, ppm (max.

expected value)

Drum-type boilers

0-300 700-3500 140-700 15 0.2-1.0

301-450 600-3000 120-600 10 0.2-1.0

451-600 500-2500 100-500 8 0.2-1.0

601-750 200-2000 40-400 3 0.1-0.5

751-900 150-1500 30-300 2 0.1-0.5

901-1000 125-1250 25-250 1 0.1-0.5

1001-1800 100 Variablec 1 0.1

1801-2350 50 Variablec N/A 0.1

2351-2600 25 Variablec N/A 0.05

2601-2900 15 Variablec N/A 0.05

Once-through boilers 1400 & above 0.05 N/A N/A 0.05

a. Actual values within the range reflect the TDS in the feed water. Higher values are for high solids; lower values are for low solids in the feed water.

b. Actual values within the range are directly proportional to the actual value of TDS of boiler water.

Higher values are for high solids; lower values are for low solids in the boiler water.

c. Dictated by boiler water treatment.

d. These values are exclusive of silica.

C.9.8 The Contractor shall provide Electricity for RSA The Contractor shall design, construct and operate the REGF for electricity consumption by RSA and, potentially, for export to the grid. The Contractor shall supply electricity to the Government in quantities not less than the Minimum Annual Electric Purchase Quantity. The REGF electric generation capacity, at the EPCC, shall be not less than 20 MW and shall supply to the Government electricity produced during periods of Grid Outages. Electricity shall be provided at the electric unit rate proposed in Section B.2, CLIN 0002. The REGF will function as a base load electrical generation facility for RSA. The Contractor’s obligation to provide electricity during periods of Grid Outages and to provide for Stand-by Charges is absolute and independent of its obligations to provide the Minimum Annual Electric Purchase Quantity.

C.9.8.1 The Contractor shall maintain electricity quality and availability The Contractor shall provide electricity commensurate with typical utility industry standards outlined in the standards requirements. A Quality Control Plan is required to be submitted as part of the solicitation for this RFP.

The Contractor shall maintain and update the Quality Control Plan as required to maintain a quality operation.

Continuous monitoring shall be performed 24 hours a day, seven days a week to demonstrate the system operates within the standards and limits as specified in IEEE 1159.3, IEEE 519, and ANSI C84.1-2011.

C.9.8.2 Project Systems Acceptance Testing (PSAT) The Contractor shall complete PSAT for Government review, outlining the process to support steam and electricity delivery at the EPCC. The plan shall identify the equipment to be installed, provide the design highlights and the operational sequences anticipated in the system commissioning. The Contractor shall provide the PSAT report for the Interconnection and Commissioning of the REGF no later than 10 days after completion of all commissioning activities.

C.9.8.3. Outages Planned or unplanned utility outages shall be documented in a written Outage Report within seven calendar days of occurrence. The Contractor shall notify the COR seven calendar days in advance prior to any planned utility outage.

The Contractor shall notify the COR within one hour of any unplanned utility outage(s).

C.9.8.4 The Contractor shall establish electric Interconnection with Installation’s system at the point of common coupling.

The Contractor shall develop an interconnection plan for Installation approval. This plan shall provide the integration process compatible with the existing RSA electrical distribution system, to include a description of the proposed EPCC. The Contractor shall complete a distribution system assessment including fault, coordination and system analysis of the 46 kV RSA distribution system regardless of proposed EPCC location. This analysis shall demonstrate operational success to assure the power supplied to the installation shall be free from power quality deficiencies such as surge, under-voltage, overvoltage, harmonics, voltage sag, or voltage swell as per IEEE Standards. Continuous monitoring shall be performed at the REGF to demonstrate the system operates within the standards and limits as specified in IEEE 1159.3, IEEE 519, and ANSI C84.1-2011 and this information shall be reported monthly.

C.9.8.5. Interconnection with the UDC The Contractor shall complete TVA interconnection documentation, fund all TVA fees, and comply with all TVA requirements and receive an approved TVA electrical Interconnection Agreement. All TVA correspondence shall be provided to the KO. The REGF may generate electricity which is in excess of RSA’s electric load requirement onto the UDC’s distribution as permitted under the interconnection documentation. The Contractor shall install monitoring equipment at RSA Primary Substation 2 (or alternate EPCC as proposed) to identify the total RSA net load. The Contractor shall design, install and maintain a control system to assure compliance with UDC requirements at all times.

The Contractor shall perform interconnection in accordance with the TVA approved interconnection study and the Installation’s approved interconnection plan and shall provide a copy of the TVA approved interconnection plan no later than 30 days prior to construction.

C.9.8.5.1 The Contractor shall install and maintain the REGF interconnection equipment at the EPCC.

The Contractor shall provide and maintain all necessary equipment required to transport the generated electrical power from the REGF to the EPCC.

The Contractor shall provide and install commercially available continuous utility grade advanced metering equipment. All energy generated by the REGF and furnished by the Contractor shall be measured at the contractor revenue meter for billing. The meter shall support bidirectional interval metering for real and reactive energy and demand which will register demand entries at a minimum of every 30 minutes. Meter reading output data shall be synchronized with TVA time stamp. The Contractor shall provide continuous metering at all times including during periods of maintenance and calibration of the meters. Contractor shall provide to the COR a description of its service plan and re-calibration procedures within the meter report, including Government witnessing of such activities. On and off peak energy, real power, reactive power and power factor data shall be provided (refer to Section I, FAR 52.241-6 Service Provisions). The Contractor shall provide a Billing Meter Report no later than 10 days into the following year that provides the usage analysis and conditions report including 30 minute electric interval data synchronized with TVA billing meters.

C.9.8.5.2 Primary Substation 2 The Contractor shall provide and install commercially available continuous utility grade advanced metering equipment in accordance with Section J, PWS Appendix 9 – Advanced Meter Specifications.

The Contractor shall furnish and install the advanced meter at Primary Substation 2 for RSA Supervisory Control and Data Acquisition (SCADA) interconnection purposes or at the proposed EPCC. This metering system shall provide a continuous supply of advanced metering interval data to the Government’s SCADA system at a minimum sample rate of 1 per second for monitoring and data acquisition.

The meter shall support bidirectional interval metering for real and reactive energy and demand and will register demand entries a minimum of every 30 minutes.