07-15-11 BPU RPT 07 - Laserfiche WebLink

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WATT It f ERLY t 4 > f RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: July 15, 2011 ITEM NO: 7 SUBJECT: TEQUESQUITE SOLAR PROJECT REQUEST FOR PROPOSALS ISSUE: Seizing Our Destiny Route 5 - Becoming a Green Machine - Issuance of a Request for Proposals for possible development of a utility-scale five to ten megawatt photovoltaic renewable energy project at the former Tequesquite Landfill site to continue Riverside's position as a Model Solar City. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Support the issuance of a Request for Proposals to consider potential development a photovoltaic renewable energy project at the former Tequesquite Landfill site; 2. Direct the Public Utilities General Manager to issue such a Request for Proposals in the next 60 to 90 days; and 3. Compare overall kWh costs of this project with other renewable resources to determine if the proposed project is cost effective at this time. BACKGROUND: The former Tequesquite Landfill ("Tequesquite') occupies approximately 120 acres located southwest of Mt. Rubidoux and adjacent to the Santa Ana River. Tequesquite was decommissioned and "capped" in 1985, and the City's Public Works Department continues to monitor and maintain the site. Beginning in 2008, Public Utilities began investigating possible development of about forty acres of the Tequesquite site as a utility-scale five to ten megawatt photovoltaic renewable energy project. During that investigation, Public Utilities completed the requirements of the California Environmental Quality Act ("CEQA") and the City Council approved the CEQA documents and processes needed to move forward with the project feasibility analysis. Although project development was determined to be feasible, further development was delayed in 2010 by at least five years so that funding of the initial phase, approximately $7 million, could be redirected to rebates for customer owned photovoltaic systems. Evolving design and manufacturing improvements in photovoltaic technology and costs indicate that it may be possible to move forward with this project at an earlier than anticipated date. Solar energy from a vendor owned system at this location may be feasible through a Power Purchase Agreement (PPA). A PPA would obligate Riverside Public Utilities to purchase power at a specific rate for a specific period of time. This format allows a private company the benefits of tax incentives and private financing, while allowing RPU to obtain renewable energy for its customers at a lower cost. Results of the RFP would be compared against the cost of alternative renewable resources. Only if the proposed total cost of power from the Tequisquite PV Project was competitive would the project and PPA be recommended for approval. Prices from renewable resources such as wind, geothermal, biomass and hydra will be considered as alternative resources when the results of the RFPs are being considered.