HomeMy WebLinkAbout04.a. Update on Central San's Solar Project on the Lagiss PropertyPage 1 of 7
Item 4.a.
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October 17, 2023
TO: REAL ESTATE, ENVIRONMENTAL AND PLANNING COMMITTEE
FROM: MELODY LABELLA, RESOURCE RECOVERY PROGRAM MANAGER
REVIEWED BY: GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE UPDATE ON CENTRAL SAN'S SOLAR PROJECT ON THE
LAGISS PROPERTY
In November 2020, Central San's Board approved the execution of a 25-year Power Purchase
Agreement with REC Solar for the design, construction, maintenance of a 1.75 megawatt solar array on
Central San's Lagiss property. Staff, along with Central San's solar consultant, will review the attached
presentation with the Committee to provide an update on the progress of the project, which is currently
under construction and expected to be operational by the first quarter of 2024.
Strategic Plan Tie -In
GOAL TWO: Environmental Stewardship
Strategy 4 - Identify and advance sustainability initiatives, including reducing energy usage and emissions
ATTACHMENTS:
1. Presentation
October 17, 2023 Special REEP Committee Meeting Agenda Packet - Page 23 of 31
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October 17, 2023
Update on
Central San's
Solar Project
Real Estate, Environmental &
Planning Committee Meeting
Melody LaBeRa, P.E.
Resource Recovery Program Manager
Russ Leavitt
Engineering Assistant III
Russell Driver
Principal, ARC Alternatives
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October 17, 2023 Special REEP Committee Meeting Agenda Packet - Page 24 of 31
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Background
Central San has existing solar arrays at our Household
Hazardous Waste Collection Facility and Collection
System Operations Division office that were
contracted under a Power Purchase Agreement (PPA)
that resulted from a regional solar power
procurement led by Alameda County.
In 2019, staff contracted with solar consultant ARC
Alternatives (ARC) to determine if additional solar
power made sense for Central San's operation.
ARC completed a study and recommended a 1.75-
megawatt (MW) solar project, interconnected under
PG&E's Renewable Energy Self -Generation Bill Credit
Transfer (RES-BCT Program) and procured under a
PPA, be constructed on Central San's Lagiss property.
Solar Project Chronology
June 2020: Request for Proposals issued
November 2020: Board awarded a PPA to
REC Solar (Duke) for a 1.75 MW solar
photovoltaic system on Central San's Lagiss
property with a solar power price of $0.0866
per kilowatt-hour (kWh)
July 2021: Project design sufficient to
complete environmental evaluation
September 2021: Public Hearing opened and
continued for the project's environmental
review
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October 17, 2023 Special REEP Committee Meeting Agenda Packet - Page 25 of 31
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Solar Project Chronology
January 2022: Board adopted a mitigated negative
declaration (MND) under the California Environmental
Quality Act (CEQA), approved the project, and
approved PPA Amendment #1 with a new solar power
price of $0.10 per kWh
m
February 2022: Board approved a capital project (to fund the project's PG&E
grid interconnection and CEQA work) and the incorporation of a new solar
power price of $0.0857 per kWh
March through August 2022: Four burrowing owl surveys conducted as part
of the project's CEQA mitigation
July 2022: Board approved a change order request and PPA Amendment #2
for a new solar power price of $0.09128 per kWh
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Solar Project Chronology
October 2022: Burrowing owl
survey conducted
October 2022 through June
2023: Duke worked with
Kinder Morgan to execute an
agreement to construct a road
over their onsite fuel pipelines
and easements
June 2023: Final burrowing owl
survey conducted
July 2023: Construction started
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October 17, 2023 Special REEP Committee Meeting Agenda Packet - Page 26 of 31
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CEQA Comments Received and Responses
Comments were received from the County Airport Land Use Committee
(ALUC) and California Department of Fish and Wildlife (CDFW).
The ALUC's lighting limitation was already a part of the project.
The CDFW comments and a subsequent meeting between Central San
and CDFW staff resulted in the addition of refined mitigation measures
to offset the potential loss of burrowing owl habitat. CDFW requested
up to 3:1 conservation land. A Central San biology consultant
concluded that 1:1 should be sufficient, if evidence of a burrowing owl
is found onsite before construction begins.
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CEQA Update
Six burrowing owl surveys were conducted by
Albion Environmental, Inc. between February 2022
and June 2023.
There was no evidence of occupancy found nor
sighting of burrowing owls onsite.
As a result, Central San will not have to spend up to
$500,000 on an onsite conservation easement and
trust agency monitor nor an offsite conservation
bank to mitigate for the loss of burrowing owl
habitat.
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October 17, 2023 Special REEP Committee Meeting Agenda Packet - Page 27 of 31
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Community Outreach
Throughout the planning and development of
the project, Central San has remained in touch
with the Blum Road neighborhood.
• Webpage: www.centralsan.org/solar
• Mailings
A public hearing was opened in September 2021
and concluded in January 2022.
The most recent mailer was sent in June to
announce the start of construction.
E
Financial Benefit
June 21, 2023
Dear Blum Road area neighbor:
Construction is about to begin on Central
San's solar project on our property at the
north end of Blum Road. Weather permitting,
the work should be completed by the end of
this November.
Questions or concerns? Contact Russ Leavitt
at rleavitt@centralsan.org or (925) 229-7255.
Using an escalation rate of 4.5% for PG&E power, the
$0.09128 per kWh for solar power will result in Central
San saving nearly $5.7 million (net present value) over
the 25-year PPA term.
This results in a positive cashflow in Year 5, which
complies with Central San's Board Energy Policy for PPAs,
even though Central San is cash financing a portion of
the project (the PG&E interconnection fee of—$500,000).
MC 53264
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October 17, 2023 Special REEP Committee Meeting Agenda Packet - Page 28 of 31
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Next Steps
Finalize which Central San power
meters will be enrolled as benefitting
accounts and transition them back to
PG&E (from MCE) for inclusion in the
RES-BCT Program
Complete construction (end of 2023)
Project start-up (first quarter of 2024)
Cost true -up
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October 17, 2023 Special REEP Committee Meeting Agenda Packet - Page 29 of 31