The California Public Utilities Commission (CPUC) will soon be changing the Net Energy Metering framework, which will significantly impact the viability of future net metered solar energy new projects going forward at City Facilities. As a result, City staff have been exploring opportunities to secure legacy access to the current, more lucrative Net Energy Metering framework (NEM 2.0), to achieve sustainability goals and reduce energy costs through alternative energy sources.
City staff have reviewed School Project for Utility Rate Reduction (SPURR), a California-based joint powers authority of over 300 public agencies, which operates a variety of cooperative procurement programs that include electricity, renewable energy, storage, as well as energy demand response. Sierra Community College has used this program for their Rocklin campus and is very happy with the results. They are currently underway with another project at the Tahoe-Truckee campus.
One of SPURR’s programs, the Renewable Energy Aggregated Procurement Program (REAP), is an innovative aggregated solar procurement program established in 2014 that leverages the collective purchasing power of SPURR’s large membership to secure transparent, pre-negotiated solar project pricing and terms to be made available to SPURR members and other Eligible Entities. The REAP program allows members and Eligible Entities to piggyback on SPURR’s competitively-bid RFP to procure solar energy and battery storage. The City, as a public agency, is an Eligible Entity and is therefore able to participate in the REAP program.
The proposed Solar Power Projects encompasses the construction of Solar Photovoltaic (PV) Systems at four City facilities:
- Rocklin Event Center
- City Hall (Quarry Park Adventures)
- Lonetree Ballpark (Kathy Lund Park)
- Corporation Yard
The proposed projects will include a total capacity of 634 kW of solar generation across the four project sites, resulting in an 80% total energy offset. It is estimate this offset will provide over $24,000 in first year utility bill savings, and approximately $1,900,000 over the life of the 20-year agreements. Canopy systems, as proposed for this project, provide the benefit of shaded parking, enhanced LED lighting to provide additional security at night, thereby resulting in additional usefulness beyond the financial and sustainability benefits of solar alone. Each solar canopy installation will be CEQA exempt.
The City has worked with ForeFront Power, which was awarded the REAP Program’s Master Contract, to propose Power Purchase Agreement (PPA) rates for the four facilities. Included in the PPA rate calculations are all costs to design, finance, construct, implement, operate, and maintain the Solar PV Systems at the City facilities. Since all costs are built into the PPA rates, there are no upfront costs to the City. The PPA includes a 0% escalator, so rates will remain the same for the entire twenty (20) years of the agreement. The proposal also includes system operations and maintenance for the life of the agreement to support an annual performance guarantee of 95%.
Utilizing the REAP Program will result in significant cost savings to the City over the life of the project and include favorable contract terms and conditions such as an annual performance guarantee, a fixed 20-year PPA rate, lifetime system operations and maintenance, City ownership of all project environmental attributes, and no money out-of-pocket from the City. The pricing and terms secured through the REAP Program are competitive in the marketplace and will allow the City to save time and money by not having to duplicate efforts, and benefit from a large-scale buying power.
Under the recommended Energy Services Agreements (ESA)-Solar, ForeFront Power would finance, design, construct, implement, operate, and maintain the Solar PV Systems, from which the City would receive and purchase energy from ForeFront Power at specified, pre-negotiated PPA rates.
Pursuant to Government Code section 4217.12, a public agency may enter into an energy service contract on terms that its governing body determines are in the best interests of the public agency if the determination is made at a regularly scheduled public hearing, public of notice of which is given at least two weeks in advance, and the governing body finds the anticipated cost to the public agency for the thermal or electric energy or conservation services provided by the energy conservation facility under the contract will be less than the anticipated marginal cost to the public agency of the thermal, electrical, or other energy that would have been consumed by the public agency in the absence of those purchases.