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FY 2010 Western Area Power Administration’s Renewable Energy Certificate Purchase

FY 2010 Western Area Power Administration’s Renewable Energy Certificate Purchase. Mike Radecki, Western Area Power Administration Chandra Shah, National Renewable Energy Laboratory. Topics. What are Renewable Energy Certificates (RECs)?

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FY 2010 Western Area Power Administration’s Renewable Energy Certificate Purchase

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  1. FY 2010 Western Area Power Administration’sRenewable Energy Certificate Purchase Mike Radecki, Western Area Power Administration Chandra Shah, National Renewable Energy Laboratory

  2. Topics • What are Renewable Energy Certificates (RECs)? • Federal Renewable Requirements - Legislation and Executive Orders • Participation in the Western FEMP REC Purchase • Q&A

  3. Renewable Energy Certificates (RECs) • Also referred to as Green Tags, Tradable Renewable Certificates, Green Energy Certificates/Credits, etc • A renewable facility produces two distinct products, that can be unbundled and sold separately: • Generic electricity (sold into the local grid) • RECs (the environmental attributes of power generated from renewable electric plants) • No renewable energy is physically delivered to your site; you purchase only the environmental attributes of renewable generation. • For sites where renewable power delivery is restricted because of physical or institutional barriers, this product may be your agency’s best option • Western can facilitate the purchase of RECs for any Federal agency in the United States

  4. Where REC’s Come From Electricity Energy Renewable energy generation “Renewable Energy” Environmental and other renewable attributes “Renewable Energy Certificates”

  5. REC Benefits • No transmission or ancillary services are required. • REC’s nave no physical constraints. • No impact to your existing power supplier (utility bill does not change). • Green your “leased” facility. • RECs are certified and verified as “green.” • Aggregate REC purchase for multiple sites.

  6. What REC’s Don’t Provide • REC’s do not offer protection against fuel price volatility. • A purchase of REC’s will not guarantee the physical integration of renewable energy into your local power supply system.

  7. Federal Renewable Requirements

  8. Energy Policy Act (EPAct) of 2005 Renewable energy goals: 3% of electric energy by FY2007 5% of electric energy by FY2010 7.5% of electric energy by FY2013 and beyond Must be a separate purchase (renewables that are part of the system mix or that are used to meet state RPS requirements do not count towards the goal) “Renewable energy" is electric energygenerated from: Solar, wind, biomass, landfill gas, ocean, geothermal, municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project. Hydrokinetic (run of the river) also qualifies, per RE Guidance Detailed biomass definition in EPAct 2005, Section 203 Agency Specific Renewable Goals may be different.

  9. Executive Order 13423 (2007) At least half of RE must come from “new” renewable sources “New” = placed into service after January 1, 1999* EO13423 revokes EO13123 requirement that all renewables used to meet federal goals must be installed after 1/1/1990 Renewable Guidance document (covers EPAct 2005 and EO13423): http://www1.eere.energy.gov/femp/pdfs/epact05_fedrenewenergyguid.pdf Section 4 describes when RE can be used for EE goals and the planned phase out for use of RE purchases towards EE goal by FY2012

  10. Executive Order 13514 (Oct 5, 2009) Each agency establish Scope 1 & 2 greenhouse gas (GHG) goals within 90 days Scope 3 GHG goal within 240 days (Section 2a and 2b) Scope 2: direct GHG emissions resulting from the generation of electricity, heat, or steam purchased by a Federal agency Physically occur at the facility where electricity is generated GHG emissions vary by location and resource Solar and wind have zero emissions. Emissions study required for biomass due to varying resource types

  11. Executive Order 13514 (Oct 5, 2009) EO13514 information available at: http://www1.eere.energy.gov/femp/regulations/eo13514.html http://www1.eere.energy.gov/femp/program/greenhousegases.html http://www.fedcenter.gov/Bookmarks/index.cfm?id=13641&pge_prg_id=27111&pge_id=3605 EO13423 is not revoked by EO13514 Guidance in development

  12. E-Grid Regions and CO2 Equivalent Emission (lbs/MWh) – Non Baseload Table with emission factors:http://cfpub.epa.gov/egridweb/ghg.cfm Highest Values in Red are above national average (i.e., SRVC at 1790) 1321 1521 Values in Green are below national average, (i.e., SRMV at 1261) 1340 1672 1515 1837 2170 1799 1529 2003 2112 1624 2180 1086 2009 1790 1383 1204 Lowest 1261 1706 1121 1462 1359 1864 1477 1698

  13. Western Area Power Administration’s REC Purchase Process

  14. Major Milestones • Statement of Intent April 30, 2010. • Interagency Agreements May 31, 2010. • Request for proposals (RFP) June 1, 2010. • Proposals due to Western Aug 2, 2010. • REC contracts signed by Sept 30, 2010.

  15. Statement of Intent (SOI) • Good faith non-binding agreement • Authorizes Western to seek REC’s on your behalf • Identifies: • Quantity • Price • Period of Performance (contract length duration) • Special considerations • Renewable type • Age (in-service date) • Location (Do they need to come from a specific area/region)

  16. Interagency Agreements (IA) • Required for All Federal Agencies • Commitment of fund availability for the current year. • Every effort made to secure future appropriations. • Must include Economy Act Determination and Finding (D&F). • Authorizes Western to contract for REC’s within scope of requirements identified in SOI/IA. • Will require each participant to directly pay the REC provider. • Western will enter into a contract with each Non-Federal Western customer in Lieu of an IA.

  17. Request for Proposals • Aggregate requirements of all participants. • Includes all of the specifics from the SOI’s. • Except – your price considerations. • Public Posting. • Western’s web site • Green Power Network RFP site http://apps3.eere.energy.gov/greenpower/financial/ • Direct e-mail to interested vendors.

  18. Proposal Review / Evaluation • Proposals will be reviewed to determine if they: • Meet the needs of each participant. • Quantity, price, duration, special considerations • Demonstrate acceptable past performance.

  19. REC Contracts • Contract(s) will be prepared as needed. • Contracts are between Western and the supplier. • Western will ensure the contract meets your requirements as defined in the IA.

  20. For More Information 2010 REC Purchase Project Manager Mike Radecki Ph - 406-247-7442 FAX- 406-247-7408 radecki@wapa.gov Renewable Resources for Federal Agencies http://www.wapa.gov/powerm/pmtags.htm

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