HomeMy WebLinkAbout04. Potential Participation in R-REP Solar ProjectCentral Contra Costa Sanitary District
April 17, 2014
TO: BOARD ENGINEERING AND OPERATIONS COMMITTEE
VIA: DANEA GEMMELL, ENVIRONMENTAL SERVICES DIVISION MGF�qfOy
NATHAN HODGES, PROVISIONAL SENIOR ENGINEER o'�
FROM: DAN FROST, ASSOCIATE ENGINEER Di
MELODY LABELLA, PROVISIONAL ASSOCIATE ENGINEER 4'n
SUBJECT: REGIONAL RENEWABLE ENERGY PROCUREMENT PROJECT
Background
On January 10, 2013, our Board of Directors voted unanimously to enter into a
Memorandum of Understanding (MOU) with Alameda County to participate in the
Regional Renewable Energy Procurement Project (R -REP) that they have been leading.
As part of the District's participation in the project, staff submitted three District facilities
to the project, with the goal of receiving pricing for a Power Purchase Agreement for
solar power. The following District sites were enrolled in the process:
1. CSO Main Building (1 meter)
2. CSO Vehicle Maintenance Shop (2 meters)
3. Household Hazardous Waste Collection Facility (1 meter)
In January 2014, Alameda County received proposals from 12 vendors. After
conducting a thorough evaluation, SunEdison was selected as the winning bidder for
our sites. District staff is now in receipt of the pricing for a 20 -year Power Purchase
Agreement for solar power at the facilities listed above. The next step in the project is
for the participating agencies to enter into negotiations with the winning vendor.
Financial Analysis
In looking at the pricing offered to the District strictly from a financial standpoint, the
CSO Main Building is the clear winner, with a projected savings of approximately
$450,000 over the 20 -year term. The pricing offered for the other metered locations
result in less savings ($70,000 and $55,000, respectively, over the 20 -year term), which
may not be realized if the underlying assumptions do not hold true over time. So, staff
is now seeking guidance from., the Board on if this should be viewed as strictly an
economic decision only or if other factors should be considered, such as the public
relations value (the District being seen as a leader in using power from sources with a
lower greenhouse gas footprint) and /or if this supports the goals established by the
Board to guide our strategic planning.
Next Steps
Once staff receives the Board's direction on moving forward, staff will enter into
negotiations with SunEdison, beginning Friday, April 25, 2014. If suitable terms can be
negotiated, staff will return to the full Board later this summer to recommend a Power
Purchase Agreement.