HomeMy WebLinkAboutStaff Report 441-07City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:DECEMBER 3, 2007 CMR: 441:07
SUBJECT:ADOPTION OF A RESOLUTION TO AUTHORIZE THE CITY
MANAGER TO AWARD AND SIGN CONTRACTS FOR SOLAR
RENEWABLE ENERGY CREDITS PURCHASED FROM CITY OF PALO
ALTO COMMERCIAL AND INDUSTRIAL ELECTRIC CUSTOMER
SITES, WHERE THE TERM OF EACH CONTRACT DOES NOT
EXCEED TWENTY YEARS AND THE AMOUNT OF EACH CONTRACT
DOES NOT EXCEED $600,000
RECOMMENDATION
Staff requests that the City Council authorize the City Manager to award and execute contracts
for solar renewable energy credits purchased from solar electric generation located at City of
Palo Alto Utilities electric customer sites, where the contract terms do not exceed 20 years and
the contracted amounts do not exceed $600,000.
BACKGROUND
The City Manager currently has contract authority under Section _..~0.210 of the Municipal Code
to award and sign:
1. Contracts for goods where the term does not exceed three years and the contract price
does not exceed $250,000 per year;
2. General Services contracts where the term does not exceed three years and the contract
price does not exceed $85,000 per year;
3.Wholesale commodities contracts where the term does not exceed three years and a
contract price does not exceed $250,000 per year.
Renewable Energy Credits (RECs) are recognized by the State for use in green power programs,
and rules for qualifying to meet renewable portfolio targets are still being developed. The main
CMR: 441:07 Page 1 of 4
idea behind RECs is to provide an additional funding mechanism to tip the scale from a project
that is otherwise uneconomic, and therefore would not happen without the incremental revenue
stl’ean~.
The Electric Fund currently purchases Solar Renewable Energy Credits (SRECs) to meet the
demand for the solar portion of its retail green power program, PaloAltoGreen, through a third-
party contract with 3 Degrees, Inc. One SREC represents one MWh (1000 kWh) of electricity
generated by a solar electric generation facility, usually photovoltaics. A SREC is a certificate
associated with that generation, and is sold separately from the energy that is generated.
Current demand for the solar portion of PaloAltoGreen is approximately $60,000 per year,
projected to grow to $120,000 or more per year in the next three to five years as the program
continues to grow. Approximately one-fourth of the current PaloAltoGreen solar requirements
will be generated by the City-owned 220 kW Photovoltaic (PV) Demonstration projects that are
nearing completion at the Baylands Interpretive Center, Municipal Service Center, and
Cubberley Community Center. The remaining solar portion of PaloAltoGreen can be met with
local solar resources if the City purchases SRECs from CPAU electric customers installing solar
energy systems instead of from outside vendors. Doing so is anticipated to encourage
deplo?qnent of large solar energy systems in town that otherwise will not take place, and would
redirect current expenditures currently going elsewhere back into Palo Alto.
Staff is recommending that Council delegate contract authority specifically for SRECs from solar
electric generation located at qualifying CPAU electric customer sites. Delegating this authority
to the City Manager will substantially shorten the lead time for large electric customers
considering on-site solar electric generation, providing a degree of certainty in financial analysis
of larger-scale solar alternatives. Longer term agreements of up to twenty years are necessary to
adequately finance capital-intensive solar energy projects.
DISCUSSION
In order to minimize the administrative burden, only systems that exceed 100 kW are being
considered initially, which is the same minimum size required to qualify for performance-based
incentives in the PV Partners program. Performance-based incentives are paid over time based
on power generated instead of up-front based on initial system size. The price offered to local
customers shall be at or below the cost of outside vendor-supplied SRECs. CPAU currently pays
$50/MWh for SRECs, and SREC prices are projected to vary between $30/MWh and $150/M
in the future.
Purchase of SRECs is straightforward, but does require that the seller meet certain contractual
obligations. Key terms and seller responsibilities that are addressed in the form of agreement
(Attachment C), or will be negotiated in a substantially similar form, are summarized in table
form in Attachment B. Sale of SRECs relinquishes the seller’s rights to claim the environmental
attributes of the project in published materials or public statements, which would instead be
provided to CPAU, and in particular to the PaloAltoGreen program. PaloAltoGreen is "Green-e"
certified by an independent non-profit organization, the Center for Resource Solutions, who has
established national and reNonal standards for verifying green power programs and codes of
conduct regarding the use of renewable energy credits. Palo Alto and its vendors already adhere
CMR: 441:07 Page 2 of 4
to these standards, mad SREC providers will also be required to do so. The Green-e standards are
publicly available from the Center for Resource Solutions.
Staff anticipates additional SREC purchases will continue to become available to the City as
applications for large PV systems are submitted to the PV Partners program. Staff intends to
contract with qualifying CPAU electric customers on a first-come first-served basis with the
same terms, up to the amount of SRECs needed for PaloAltoGreen. At the current subscription
rate, the demand is sufficient to support a total of approximately 1,000 kW ofphotovoltaics.
The first application for a system large enough to qualify has been submitted by Roche Palo
Alto, with a proposed system size of 400 to 700 kW. The proposed system would be owned and
operated by Solar Power Partners, located on Roche property.
RESOURCE IMPACT
Purchasing SPECs from local solar systems will redirect current City purchases of credits back
into Palo Alto. The prices offered to local customers are at or below the cost of SRECs currently
being supplied by outside vendors. The funding for annual SPEC purchases is included in the
approved budget. If lump-sum, payments for long-term rights to SPECs will be made from
Electric Supply Reselwe funds, repaid by PaloAltoGreen revenues over time. Should
PaloAltoGreen no longer exist or cease use of SPECs, the agreements are designed to still
qualify toward renewable energy supply targets, but could result in an adverse rate impact of up
to 0.1 e/kWh (approximately $100,000 per year) if the SPECs were kept rather than sold by the
City.
POLICY IMPLICATIONS
The proposed contract authority request supports the Council-approved Utilities Strategic Plan,
Long-term Electric Acquisition Plan, and the Comprehensive Plan Goal N-9. The Council-
approved Long term Electric Acquisition Plan ("LEAP," CMR: 169:06 and CMR: 158:07) directs
staff to "promote and facilitate deployment of renewable resource supplies by providing
expertise, education, incentives and rates to support customer-owned solar power systems, and
demonstrating renewable generation technologies," and to "evaluate potential strategies to meet
the solar portion of PaloAltoGreen with local solar resources." Solar energy plays an important
role in achieving greenhouse gas reduction targets reflected in California Climate Action Team
goals and AB32 (California Global Warming Solutions Act of 2006) and identified in the report
to Council by the Mayor’s Green Ribbon Task Force, a Council priority for this year.
ENVIRONMENTAL IMPACT
The proposed contract authority request does not meet the definition of a project under the
California Environmental Quality Act, pursuant to California Public Resources Code Section
21065, and, therefore, no environmental assessment is required.
CMR: 441:07 Page 3 of 4
ATTACHMENTS
A. Draft Resolution
B. Table of Key Solar Renewable Energy Credit Agreement Terms
C. Form of Ageement
PREPARED BY:
DEPARTMENT APPROVAL:
CITY MANAGER APPROVAL:
KARL E. KNAPP ~
Senior Resource Planner
VALER.I_~ O. ~/0NG
Director, Utilities ~
Assistant City Manager
CMR: 441:07 Page 4 of 4
ATTACHMENT A
NOT YET APPROVED
RESOLUTION NO
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
TO AUTHORIZE THE CITY MANAGER ON BEHALF OF THE
CITY TO AWARD AND SIGN CONTRACTS FOR SOLAR
RENEWABLE ENERGY CREDITS PURCHASED FROM CITY OF
PALO ALTO COMMERCIAL AND INDUSTRIAL ELECTRIC
CUSTOMER SITES, WHERE THE TERM OF EACH CONTRACT
DOES NOT EXCEED TWENTY YEARS AND THE AMOUNT OF
EACH CONTRACT DOES NOT EXCEED $600,000
WHEREAS, the City of Palo Alto ("CITY") provides electric service to residential
and commercial customers located within its jurisdictional boundaries; and
WHEREAS, the Council approved green power program rate schedules in March
2003, establishing the PaloAltoGreen renewable energy program; and
WHEREAS, the PaloAltoGreen program has achieved the highest participation rate
of any green power program in the United States; and
WHEREAS, the Council approved a set of energy portfolio planning guidelines in
March 2007, among them, to promote and facilitate deployment of renewable resource supplies
by providing expertise, education, incentives and rates to support customer-owned solar power
systems, demonstrate renewable generation technologies, and to evaluate potential strategies to
meet the solar portion of PaloAltoGreen with local solar resources; and
WHEREAS, the Council adopted a Sustainability Policy in June 2007, to strive to be
a sustainable community - one which meets its current needs without compromising the ability of
future generations to meet their own needs; and
WHEREAS, scientific consensus has developed that carbon dioxide and other
greenhouse gases released into the atmosphere have a profound effect on the Earth’s climate; and
WHEREAS, the California Global Warming Solutions Act of 2006 declares that
global warming poses a serious threat to the economic well-being, public heath, natural
resources, and the environment of California; and
WHEREAS, local government actions taken to reduce greenhouse gas emissions and
increase energy efficiency provide multiple local benefits by decreasing air pollution, creating
jobs, reducing energy expenditures, and saving money for the local government, businesses, and
residents; and
WHEREAS, the Council selected climate protection as one of its four top priorities
for 2007;
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NOT YET APPROVED
NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE,
as follows:
SECTION 1. The Council hereby authorizes the City Manager, on behalf of the City,
to negotiate, execute and administer contracts for Solar Renewable Energy Credits purchased
from City of Palo Alto Commercial and Industrial electric customer sites, where the term of each
contract does not exceed twenty years and the amount of each contract does not exceed
$6O0,0O0.
SECTION 2. The Council finds that the adoption of this resolution does not meet the
definition of a project under the California Environmental Quality Act, (CEQA), pursuant to
California Public Resources Code Section 21065, and, therefore, no environmental assessment is
required.
INTRODUCED AND PASSED:
AYES:
NOES:
AB SENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Mayor
Deputy City Attorney City Manager
Director of Utilities
Director of Administrative
Services
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ATTACHMENT B
Table of Key Solar Renewable Energy Credit A~eement Terms
Payment Options
Maximum Term
Attestation
WREGIS Registration
Verification
Green-e Standards
Photovoltaic Standards
Required Submittals
Default by Seller
Exclusive Agreement
(1) Lump sum ($) paid up-front for REC rights for the duration of the
term of agreement; or
(2) Volumetric ($/MWh) paid monthly or quarterly upon receipt of
Attestation and accompanying invoice.
Twenty years.
Seller shall submit Green-e Renewable Generator registration form and
attestation, or suitable equivalent substitute.
The generation facility and all SRECs sold to City under this agreement
shall be registered with WREGIS in accordance with WREGIS Operating
Rules. WREGIS stands for "Western Renewable Energy Generation
Information System", an independent, renewable energy tracking system
for the region covered by the Western Electricity Coordinating Council
(WECC). WREGIS tracks renewable energy generation and creates
RECs.
Subject to verification via direct reading of meter by City, electronic link
to meter, or third party verification.
Seller and City shall abide by Green-e Standard and associated Code of
Conduct. Seller may claim that it is selling Renewable Energy Credits or
renewable energy to the City, but shall not claim to be using the
renewable energy on site.
Seller must meet all PV Partners program requirements.
Attestations and invoices for duration of contract Term.
If lump sum, Seller shall repay prorated rebate to City, including interest.
If volumetric, Seller shall pay 10% of the aggregate contract price to the
City.
Seller may not sell SRECs contemplated under the agreement to any
other entity.
ATTACHMENT C
RENEWABLE ENERGY CERTIFICATE PURCHASE
AND SALE AGREEMENT
This Renewable Energy Certificate Purchase and Sale Agreement (the "Agreement") is
made as of this __ day of ,2007 ("Effective Date"), by and between the CITY OF
PALO ALTO, California, a chartered California municipal corporation with its primary business
address at 250 Hamilton Avenue, Palo Alto California 94301 ("City" or "Buyer") and
, with its primary business address at ("Seller").
RECITALS:
Seller owns or will own a photovoltaic solar system ("the PV System") located at the
address stated above.
Seller’s primary business is not the generation of electricity for sale, retail or
wholesale from the same address.
Seller has the marketing rights to the Environmental Attributes to certain Renewable
Resources generated by the PV System.
The PV System creates certain characteristics that arise from the generation of
electricity using a renewable energy source, referred to herein as Renewable Energy
Credits or RECs.
go Seller wishes to sell RECs, which are byproducts of the PV System, and Buyer
wishes to buy such RECs from Seller.
NOW, THEREFORE, in consideration of the recitals and the covenants, terms and
conditions hereof, the Parties agree:
AGREEMENT:
1. Term of Agreement.
and shall remain in effect through
(20) years.
The term of this Agreement shall commence on
, but in any event the term shall not exceed twenty
2. Def’mitions. As used in this Agreement, the following terms have the respective
meanings set forth below, unless the context otherwise clearly indicates. Other capitalized terms are
defined elsewhere in this Agreement.
"Applicable Law" means all legally binding constitutions, treaties, statutes, laws,
ordinances, rules, regulations, orders, interpretations, permits, judgments, decrees, injunctions,
writs and orders of any Governmental Authority or arbitrator that apply to the Applicable
Program or any one or both of the Parties or the terms hereof.
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"Applicable Program" means a domestic, international or foreign RPS,
renewable energy, emissions reduction or Product Reporting Rights program, scheme or
organization, adopted by a Governmental Authority or otherwise, or other similar program with
respect to which exists a market, registry or reporting for particular Environmental Attributes.
An Applicable Program includes any legislation or regulation concerned with renewable energy,
oxides of nitrogen, sulfur, or carbon, with particulate matter, soot, or mercury, or implementing
UNFCCC or crediting "early action" with a view thereto, or laws or regulations involving or
administered by an Administrator, or under any present or future domestic, international or
foreign RECs, Products, Environmental Attributes or emissions trading program. Applicable
Programs do not include legislation providing for production tax credits or other direct third
party subsidies for generation by a Renewable Energy Source.
"Attestation Form" means a binding declaration by the Seller, which substantiates
the accuracy of the RECs with regard to the generator name, the date of commencement of
operation of the generator used to create the RECs, the location of the generator used to create the
RECs, the type of fuel used to generate the electricity that produced the RECs, the quantity of RECs
generated, and the date on which the RECs were generated.
"Business Day" means any day except a Saturday, Sunday, or any day observed as
a legal holiday by the City.
"Certified Renewable Energy Source" means any energy source that is recognized
under an applicable program as specified by the Parties.
"Environmental Attribute" means an aspect, claim, characteristic or benefit
associated with the generation of a quantity of electricity by a Renewable Energy Facility, other
than the electric energy produced, and that is capable of being measured, verified or calculated.
An Environmental Attribute may include one or more of the following identified with a
particular megawatt hour of generation by a Renewable Energy Facility designated prior to
Delivery: the Renewable Energy Facility’s use of a particular Renewable Energy Source,
avoided NOx, SOx, CO2 or greenhouse gas emissions, avoided water use (but not water rights or
other rights or credits obtained pursuant to requirements of Applicable Law in order to site and
develop the Renewable Energy Facility itself) or as otherwise defined under an Applicable
Program, or as agreed by the Parties. Environmental Attributes do not include production tax
credits or other direct third-party subsidies for generation of electricity by any specified
Renewable Energy Facility.
"Governmental Authority" means any international, national, federal,
provincial, state, municipal, county, regional or local government, administrative, judicial or
regulatory entity operating under any Applicable Laws and includes any department,
commission, bureau, board, administrative agency or regulatory body of any government.
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"Green-e" means an independent renewable energy certification and verification
program, administered by the Center for Resource Solutions, a Section 501(c)3 nonprofit
organization based in San Francisco, California.
"Renewable Energy Credit" or "REC" means a certificate of proof, issued through
the accounting system established by the Califomia Energy Commission pursuant to California
Public Utilities Code Section 399.13, certifying that one unit of electricity was generated and
delivered by an eligible renewable energy resource. A REC includes all rights, title and interest in
and to the Environmental Attributes associated with the electricity generated from a Renewable
Resource, including the REC Reporting Rights, as provided in California Public Utilities Code
Section 399.12(g). One R~C represents the Environmental Attributes made available by the
generation of one megawatt-hour "MWh" (equivalent to 1000 kilowatt-hours) of electricity from
one or more Renewable Resources. "RECs" may also be referred to as "Renewable Energy
Certificates", "Green Tags" and/or "Tradable Renewable Certificates" ("TRCs").
’’Renewable Energy Facility" means an electric generation unit or other facility or
installation that produces electric energy using a Renewable Energy Source.
’’Renewable Energy Source" means an energy source that is not fossil carbon-
based, non-renewable or radioactive, and may include solar, wind, biomass, geothermal, landfill,
gas, or wave, tidal and thermal ocean technologies, and includes a Certified Renewable Energy
Source.
"Renewable Portfolio Standard" or "RPS" means a state or federal law, rule or
regulation that requires a stated amount or minimum proportion or quantity of electricity that is
sold or used by specified persons to be generated from Renewable Energy Sources.
"REC Reporting Rights" means the right to report to any agency, authority or
other party, including, without limitation, under Section 1605(b) of the Energy Policy Act of 1992
(42 USC Section 13385), ownership of the Environmental Attributes associated with the REC.
applicable.
"Party" or "Parties" means Buyer and Seller, individually or collectively, as
’’Product Reporting Rights" means the exclusive right to report sole ownership
of the Product to any Certification Authority, GIS, Administrator, Governmental Authority or
other party, including under Section 1605(b) of the Energy Policy Act of 1992, or under any
present or future Applicable Program.
"Renewable Resource" means an electric power generator producing electric
power from sun, wind, geothermal, biomass, low-impact hydro, and landfill gas and certified by the
Center for Resource Solutions’ Green-e certification program or as agreed to, in writing, by Buyer.
"WECC" means Western Electricity Coordinating Council, the western regional
council of the North American Electric Reliability Council (NERC).
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"WREGIS" means the Renewable Energy Generation Information System, an
independent, renewable energy tracking system for the region covered by the Western Electricity
Coordinating Council (WECC).
3.REC Provisions.
(a)Purchase and Sale: On the terms and subject to the conditions set forth in
this Agreement, Seller agrees to sell and Buyer agrees to purchase all of
Seller’s rights, title and interest in and to the RECs to be provided on the
dates and otherwise as set forth on Exhibit A.
Right to Sell and Associated Declarations. In selling the RECs to Buyer,
Seller hereby represents and warrants that it transfers and sells to Buyer all
present and future rights, title and interest of Seller in and to the
Environmental Attributes as set forth in Exhibit A to the extent Seller will
have such rights, rifle, and interest in and to such RECs under applicable law,
and such transfer and sale to Buyer is not in violation of any applicable law
at the time of such transfer and sale.
Notwithstanding whether such RECs are transferable to Seller under any
applicable law, Seller covenants that it has not and will not transfer any
portion of the rights, title and interest in and to the RECs to a third party,
RECs were not and will not be sold, marketed or otherwise claimed by a
third party, RECs described in this Agreement will be sold once and only
once, the renewable attributes or the electricity that was generated with the
attributes was not used to meet any federal, state or local renewable energy
requirement, renewable energy procurement, renewable portfolio standard,
or other renewable energy mandate, and (v) the electrical energy that was
generated with the attributes was not separately sold, separately marketed or
otherwise separately represented as renewable energy by Seller or any other
entity. Seller shall take such action as may be necessary to transfer and
evidence the transfer of RECs to Buyer.
Seller represents and warrants that it has exclusive rights to the title and
interest in and to the RECs being transferred to Buyer hereunder and will
transfer the same to Buyer on the dates provided in this Agreement.
(c)
(d)
REC Contract Price. Buyer agrees to buy and Seller agrees to sell REC at a
price in dollars per MWh as set forth in Exhibit A.
REC Quantity. Seller will provide to Buyer RECs in the quantity as set forth
in Exhibit A.
(e)Monetary_ Value of This Transaction. Buyer agrees to pay a total of
$ over the term of the Agreement for MWh of RECs as
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set forth in Exhibit A. The maximum monetary value of this transaction
shall not exceed six hundred thousand dollars ($600,000).
(f)Green-e Certification. Seller represents and warranties that it will provide to
Buyer RECs that meet or exceed the requirements of the Center for Resource
Solutions’ Green-e certification program, as amended from time to time and
referenced in Exhibit B. If mutually agreed to by both parties in writing,
Seller may provide to Buyer RECs that meet or exceed the requirements of
an alternative accreditation program.
(g)Reporting.
(1)Seller shall be obligated to complete and provide to Buyer a signed
copy of the Green-e Renewable Generator Registration Form
("Form") and Attestation (reference Exhibit B), or suitable
equivalent substitute, quarterly, due by the 30th Business Day of the
Month. Said Form shall designate for the previous calendar year; the
quantity of RECs created in MWh by quarter; the location and name
of the generator used to create the RECs; and the date the generator
used to create the RECs began operation.
(2)Buyer reserves the right to withhold Buyer’s monthly payment for
REC purchase until such forms are property submitted. If Buyer has
pre-paid for its REC purchase, damages for breach of this provision
shall consist of repayment by Seller of the pro-rata share of the rebate
and REC payment made to Seller under this Agreement.
(h)PV Partners Program Compliance. Seller must meet all PV Partners
Program requirements (as set forth in Exhibit C).
(i)WREGIS Re,~stration. The generation facility and all RECs sold to Buyer
under this Agreement shall be registered with WREGIS in accordance with
WREGIS Operating Rules, dated June 4, 2007, or as subsequently amended
or modified or replaced. Seller assumes all costs of WREGIS registration
and submittals.
Verification. Buyer reserves the right to verify that the PV System is
functioning in good working order via direct reading of meter by Buyer,
electronic link to the meter, or independent third party verification.
(k)Maintenance of Photovoltaic System. Seller shall maintain the PV System
and its individual components in good working order at all times during the
term of this Agreement. If, during the term of this Agreement, the PV
System or any of its individual components shall become damaged or
destroyed, Seller shall promptly repair or replace the equipment to its
original specifications, tilt and orientation at Seller’s sole expense.
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Billing
(c)
and Terms of Payment.
Billing. On or about the day of each month, Seller will provide
invoice to Buyer in the amount of $.per
Terms of Payment. The terms of payment shall be net thirty (30) days after
the date Buyer receives a properly prepared and accurate invoice sent to the
Buyer’s address, which shall include at a minimum:
(1)Seller’s complete name and remit to address;
(2)"bill to" stating applicable Buyer entity;
(3)Material purchased;
(4)Price and billing units consistent with Exhibit A of this Agreement;
(5)Quantity;
(6)Seller’s invoice number;
(7)invoice date;
(8)total monetary amount;
(9)terms of payment, including any applicable discount calculations;
(10)tax amount/rate information.
Payment may be made by check or wire transfer. Payment by check shall be
considered made when post-marked by the U.S. Postal Service.
Payment may be made by check or wire. Payment by check shall be
considered made when post-marked by the U.S. Postal Service.
Buyer agrees to send its payment to:
Address:
Attention:
5.Events of Default.
The occurrence of any of the following shall constitute an Event of Default with
respect to a Party:
(a)the failure of the Buyer to make any payment required pursuant to this
Agreement, if such failure is not remedied within five (5) business days after
written notice, provided that if the Buyer, in good faith, disputes all or any
portion of the fee, the Buyer shall pay only that portion of the fee that it does
not dispute;
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(b)
(c)
(d)
(e)
the failure of the Seller to deliver RECs when due pursuant to this
Agreement, if such failure is not remedied within five (5) business days after
written notice to the affected Party;
any representation or warranty provided by Seller herein that shall prove to
have been false or misleading in any material respect when made or when
made or repeated;
the failure by a Party to perform any covenant or agreement set forth in this
Agreement (other than its obligations to make any payment or obligations
which are otherwise specifically covered as a separate Event of Default), and
such failure is not cured within fifteen (15) business days after written notice
thereof to the affected Party; or
the filing of a petition in bankruptcy or a petition for reorganization or other
arrangement relating to the bankruptcy, insolvency, or receivership of the
Seller and/or its assets, unless the same is dismissed within one hundred
eighty (180) days of the filing thereof.
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Remedies for Default
(a)If an Event of Default occurs with respect to either Party at any time
during the term of this Agreement, the non-defaulting Party may (i)
terminate this Agreement pursuant to Article 7, (ii) withhold any payments
due in respect of this Agreement to the extent of its damages and (iii)
exercise such other remedies as may be available at law or in equity or as
otherwise provided in this Agreement.
Co)Buyer’s Liability. In the event Buyer causes or suffers an Event of
Default and Seller elects to terminate this Agreement, then
notwithstanding termination hereof, Buyer shall be obligated to pay Seller
temaination damages equal to the price for any RECs delivered to Buyer
for which Seller has not been paid.
(c)Seller’s Liability. In the event Seller causes or suffers an Event of Default
and Buyer elects to terminate this Agreement, then notwithstanding
termination hereof, (i) Seller shall be obligated to pay Buyer termination
damages equal to the sum of the price for any RECs already prepaid which
have not been delivered to Buyer, if any, plus interest at a rate of 12% per
year or the maximum rate allowed by law, (ii) or if no RECs have been
prepaid, Seller shall pay 10% of the aggregate price of the remaining
undelivered RECs, as set forth on Exhibit A.
(d)No Penalty. Both Parties hereby stipulate that the obligations to pay
damages set forth above represent liquidated damages, are not assessed as
a penalty, and are reasonable in light of the anticipated harm and the
difficulty of estimation or calculation of actual damages. As such, each
Party hereby waives the right to contest such payments as an unreasonable
penalty.
7.Termination.
This Agreement may be amended or terminated by mutual agreement of the Parties
at any time. Either Party shall also have the right to terminate its participation in this Agreement, if
the other Party is found to be in material breach of any of its obligations hereunder, and if such
breach is not cured within fifteen (15) days of written notice of the default.
8.Indemnification.
(a)Indemnification of Buyer: To the fullest extent permitted by law, Seller
agrees to protect, defend, hold harmless and indemnify Buyer, its City
Council, commissioners, officers, employees, volunteers and agents from
and against any claim, injury, liability, loss, cost, and/or expense or damage,
including all costs and reasonable attorney’s fees in providing a defense to
any claim arising therefrom, for which Buyer shall become liable arising
from Seller’s negligent, reckless or wrongful acts, errors, or omissions with
respect to or in any way connected with the maintenance, assistance and
services performed by Seller pursuant to this Agreement, except for claims,
liabilities and damages caused by the Buyer’s sole negligence or willful
misconduct.
Co)Indemnification of Seller: To the fullest extent permitted by law, Buyer
agrees to protect, defend, hold harmless and indemnify Seller, its board of
directors, officers, employees, volunteers and agents from and against any
claim, injury, liability, loss, cost, and/or expense or damage, including all
costs and reasonable attorney’s fees in providing a defense to any claim
arising therefrom, for which Seller shall become liable arising from Buyer’s
negligent, reckless or wrongful acts, errors, or omissions with respect to or in
any way connected with the maintenance, assistance and services performed
by Buyer pursuant to this Agreement, except for claims, liabilities and
damages caused by the Seller’s sole negligence or willful misconduct.
9.Relationship of the Parties.
The relationship of the Parties under this Agreement is that of independent
contractors. The Parties specifically state their intention that this Agreement is not intended to
create a partnership or any other co-owned enterprise unless specifically agreed to by the Parties in a
separate written instrument. Except as specifically provided herein, each Party shall continue to
have the right to contract independent of the other Party with individuals and entities. Each Party
shall be responsible for its own operating expenses and personnel expenses.
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10.Taxes.
Seller is liable for and shall pay or cause to be paid all taxes applicable to or arising
out of the transactions contemplated in this Agreement.
11. Notices.
All notices required or permitted to be given hereunder in writing shall, unless
expressly provided otherwise, be in writing, properly addressed, postage pre-pald and delivered by
hand, facsimile, certified or registered mail, courier or electronic messaging system to the
appropriate address as either Party may designate from time to time by providing notice thereof to
the other Party.
If to Buyer:If to Seller:
Address: 250 Hamilton Ave.
Palo Alto, CA 94301
Attention: City Clerk
Phone: 650-329-2571
Fax: 650-328-3631
Address:
Attention:
Phone:
Fax:
With a copy to:
Address: 250 Hamilton Ave.
Palo Alto, CA 94301
Attention: Director of Utilities
Phone: 650-329-2277
Fax:650-329-2154
Notices delivered by facsimile or by an electronic messaging system shall require confirmation
through a reply facsimile or electronic message.
12.Publicity and Disclosure.
Seller shall not use the name, tradename, trademarks, service marks of or owned by
Buyer, or logos of Buyer in any publicity releases, news releases, annual reports, product packaging,
signage, stationery, print literature, advertising, websites or other media without securing the prior
written approval of Buyer. Seller shall not, without prior written consent of Buyer, represent,
directly or indirectly, that any product or service offered by Seller has been approved or endorsed by
Buyer. Seller agrees that Buyer may make oral and written reports and other communications
regarding this Agreement to the Palo Alto City Manager, City Council and other public officials,
which reports and communications will be public reports and communications.
071126 syn6050283
13. Nondiscrimination. As set forth in Palo Alto Municipal Code section 2.30.510,
Seller agrees that in the performance of this Agreement, it shall not discriminate in the
employment of any person because of the race, skin color, gender, age, religion, disability,
national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight
or height of such person. Seller acknowledges that it has read and understands the provisions of
Chapter 2.28 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and
the penalties for violation thereof, and agrees to meet all requirements of Chapter 2.28 pertaining
to nondiscrimination in employment, including completing the form furnished by Buyer and set
forth in Exhibit D.
16.Miscellaneous.
(a)Representations and Warranties.
(1)Each Party represents and warrants that the execution and
performance of this Agreement does not conflict with or result in a
breach of any other agreement to which it is a Party.
(2)Each Party represents and warrants that it is duly organized, validly
existing and in good standing under the laws of a state of the United
States of America.
(3)Each Party represents and warrants that it has full power and
authority to make, execute, deliver and perform this Agreement.
(4)Each Party represents and warrants that is will abide by Green-e
Standard v. 1.4 or as amended.
17. Choice of Law. The laws of the State of California shall be applied and be
controlling for all pul~oses and all matters relating to this Agreement. In the event that an action is
brought, the Parties agree that trial of such action will be vested exclusively in the state courts of
California or in the United States District Court for the Northern District of California in the County
of Santa Clara, State of California.
18. Entire Agreement. This Agreement constitutes the entire agreement between the
Parties relating to the subject matter hereof and supersedes all prior agreements, understandings,
negotiations, whether oral or written, of the Parties.
19. Amendments. Except to the extent herein provided, no amendment, supplement,
modification, termination or waiver of this Agreement shall be enforceable unless executed in
writing by the Party to be bound thereby.
20. Assignment. This Agreement is binding on any successors and assigns of the
Parties. Neither Party may otherwise transfer or assign this Agreement, in whole or in part, without
the other Party’s written consent. Such consent shall not be unreasonably withheld.
071126 syn6050283
10
21. Non-Waiver; No Third Party Beneficiaries. No waiver by any Party of any of its
rights with respect to the other Party or with respect to this Agreement or any matter or default
arising in connection with this Agreement, shall be construed as a waiver of any other right, matter
or default. Any waiver shall be in writing signed by the waiving Party. No payment, partial
payment, acceptance or partial acceptance by Buyer will operate as a waiver on the part of the
Buyer of any of its rights under the Agreement. This Agreement is made and entered into for the
sole benefit of the Parties, and their permitted successors and assigns, and no other Person shall be a
direct or indirect legal beneficiary of, have any rights under, or have any direct or indirect cause of
action or claim in connection with this Agreement.
22. Severabilitv. In the event that any provision of the Agreement shall be found to be
void or unenforceable, such findings shall not be construed to render any other provision of the
Agreement either void or unenforceable, and all other provisions shall remain in full force and effect
unless the provisions which are void or unenforceable shall substantially affect the rights or
obligations granted to or undertaken by either Party.
23. Force Maieure. Neither Party shall be liable in any respect for failure or delay in
the fulfillment or performance of this Agreement, if performance is hindered or prevented, directly
or indirectly by war, public emergency or calamity, fire, earthquake, Acts of God, strikes, labor
disturbance or actions, civil disturbances or riots, litigation brought by third parties against the
Parties, or any act of a superior governmental authority or court order. Force Majeure may not be
based on Seller’s ability to sell RECs to another at a price greater than the purchase price.
24. Compliance with Law. Each Party will comply with all lawful federal, state and
local laws, ordinances, resolutions, rate schedules, rules and regulations that may affect its rights
and obligations under the Agreement.
25. Fiscal Provisions. This Agreement is subject to the fiscal provisions of the
Charter of the City of Palo Alto and the Palo Alto Municipal Code. The Agreement will
terminate without any penalty (i) at the end of any fiscal year in the event that funds are not
appropriated for the following fiscal year, or (ii) at any time within a fiscal year in the event that
funds are only appropriated for a portion of the fiscal years and funds for the City’s obligations
are no longer made available. This provision will take precedence in the event of a conflict with
any other term or condition of the Agreement.
//
//
//
//
//
//
071126 syn6050283
11
IN WITNESS WHEREOF, each of the Parties hereto acknowledge that they have read the
terms and conditions contained herein, understand and agree to the same and agree to be bound
thereby and have caused this Agreement to be executed in duplicate originals by its duly authorized
representative on the respective dates entered below.
CITY OF PALO ALTO
("PURCHASER")("SELLER")
City Manager
APPROVED AS TO FORM:
Senior Asst. City Attorney
APPROVED:
By:
Name:
Title:
Taxpayer Identification No.
Director of Administrative
Services
Director of Utilities
071126 syn6050283
12
EXHIBIT A: Renewable Energy Credit (REC) Provision Details
SELLER:BUYER: Ciw of Palo Alto
1. Term (years):
1.1. Star~ Date:
1.2. End Date:
2. Attestation and Invoice (if Volumetric3 Schedule: (check one)
Submitted: [] Monthly [] Quarterly
3. Project Description:
3.1. [] Attach copy of PV Partners Approved Claim Form and Application
3.2. Estimated Rated Capacity:(kWAc, rounded to nearest whole k~V)
3.3. Verified Capacity:(k:WAC, rounded to nearest whole kW)
3.4. Estimated _Annual Production ~A~): __ (M~VhAc per year to nearest tenth)
4.CEC Registration Information: Provided by Seller upon Registration with California
Energy Commission (CEC)
4.1. CEC ID:
5. WREGIS Registration Information: (Provided by Seller upon Registration with WREGIS)
5.1. Primav Account Holder (AH}:
5.2. Qualified Reporting Entity (QEE):
5.3. Generating Unit (GU):
5.4. GU Reporting Entity Classification (A-J):
5.5. [] Attach copy of execrated Wt~GIS Account Holder A~eement
5.6 Proof of WREGIS Intra-Accoumt T~amsfer to City Account shall accompany each
Invoice.
5.7.Procedures for completing W~GIS RECC transfers shall be developed in good
faith by Seller and Buyer, and amended in accordance with WREGIS Operating
Rules.
6. Contract Price: (Check one and enter Price):
6.1 [] Lump Sum: Price
6.2 [] Volumetric: Price $/MWEAC
071127 syn 6050287
7. Payment Calculation: (use only one based on Contract Price selection)
7.1. Lump Sum Payment
7.1.1. Lump Sum (estimate): Price * Estimated Rated Capacity =
7.!.2. Lump Sum (fin!l):Price * Verified Capacity = $
7.2. Volumetric Payment
7.2.!. Volumetric (estimate): Price * EAP * Term = $
7.2.2.Buyer agrees to pay a tota! ors over the term of the
Agreement for MWh of RECs.
8. Project Construction Schedule (if Applicable):
8.1. Estimated Completion Date:
9. Estimated REC Generation Schedule:
Generating
Unit
Delivery date
(Month/Year)
Januaa.w
February
March
April
May
June
July
August
September
October
November
December
Quanti~
(MWh)
Rounded to
nearest tenth
071127 syn 6050287
2
EXHIBIT B
GREEN-E CUSTOMER-SITED SOLAR RENEWABLE
GENERATOR REGISTRATION FORM AND ATTESTATION
I. Facility information
Name of Generation Facility ("Facility"):
Company or Person that Owns Facility ("Seller"):
Address of Facility:
North American Electricity Reliability Corporation (NERC) region in which Facility is located: __WECC__
Facility ID Number1:
Date Facility was First Operational:
Contact Person:
Telephone:
EIA or QF? (circle one)
/ /
Nameplate Capacity (MW):
Title:
Email Address:
List the renewable MWhs generated in each quarter and sold or transferred to purchaser identified below as a
separate line item.
Solar Electric
1 Enter Energy Information Administration (EIA) identification number for the generating facility; if no EIA number,
enter the utility-assigned Qualifying Facility (QF) identification number. If not applicable, enter NIA
July 2007 Green-e Renewable Generator Registration Form and Attestation Page 1 of 3
Declaration
I, (print name and title), declare that the renewable attributes
only listed above were sold exclusively from Seller to the City of Palo Alto ("Purchaser").
I further declare that:
t ) all the renewable attributes (including CO2 benefits), including any emissions offsets, reductions or claims,
represented by the renewable electricity generation listed above were transferred to Purchaser;
2) to the best of my knowledge, the renewable attributes were not sold, marketed or otherwise claimed by a
third party other than Purchaser;
3) Seller sold the renewable attributes only once;
4) the renewable attributes or the electricity that was generated with the attributes was not used to meet any
federal, state or local renewable energy requirement, renewable energy procurement, renewable portfolio
standard, or other renewable energy mandate by Seller, nor to the best of my knowledge, by any other entity
other than Purchaser;3
5) the renewable electricity sold or electricity associated with the attributes sold was not used on-site for
powering electric generation equipment (parasitic load);
6) for on-site generation, the renewable power was used to offset purchases of power from the retail utility
service provider;
7) if Purchaser is receiving electricity bundled with renewable attributes from Seller, the renewable electricity
was
8) the electricity that was generated with the attributes was not separately sold, separately marketed or
otherwise separately represented as renewable energy by Seller, or, to the best of my knowledge, any other
entity other than Purchaser.
Please indicate the following:
Is Facility owner reporting its direct greenhouse gas emissions in a legally binding cap and trade program for
the time period of generation listed on this form?
~Yes;~ list the cap and trade program:
~No
If Seller is providing only RECs to Purchaser and selling the associated electricity to a utility or load-serving
entity, please write the name of the utility or load-serving entity here:
Check box if sale is part of a Qualifying Facility (QF) Facility
3 Renewable attributes used by Purchaser for any of the purposes listed in 4) are ineligible for Green-e certification.4 In this case the renewable energy or RECs reported on this form may be ineligible for Green-e certification. For
more information, contact Green-e Staff at 415-561-2100.
July 2007 Green-e Renewable Generator Registration Form and Attestation Page 2 of 3
This serves as a bill of sale, transferring from to Customer all of Seller’s right, title and interest
in and to the Environmental Attributes and Renewable Energy Credits associated with the generation of the
energy for delivery to the grid.
As an authorized agent of Seller, I attest that the above statements are true and correct.
Signature Date
Place of Execution
This Form is used by the Center for Resource Solutions to verify the accuracy of claims made by
retail marketers. "]’lie information on this form is held strictly confidential and will not be shared with
any other party except in aggregate form.
July 2007 Green-e Renewable Generator Registration Form and Attestation Page 3 of 3
EXHIBIT C
CITY OF PALO ALTO
UTILITIES
PV PARTNERS
PROGRAM
2007 GUIDEBOOK
Effective 7/1/07-6/30/08
DRAFT PV Partners 2007 Guidebook 6/25/2007
Program Goals ............................................................................................................................................3
Program Eligibility and Requirements ......................................................................................................3
Applicant ....................................................................................................................................................3
System Equipment ....................................................................................................................................3
System Size ...............................................................................................................................................3
Energy Efficiency .......................................................................................................................................4
Shading Analysis .......................................................................................................................................4
Annual Energy Production .........................................................................................................................4
Warranty ....................................................................................................................................................4
Performance and Permanency ..................................................................................................................5
Metering and Data Collection ............: .......................................................................................................5
Site Inspections and System Verification ..................................................................................................5
Incentive Structure ......................................................................................................................................5
Incentive Tables ........................................................................................................................................6
Capacity Based Incentives ........................................................................................................................8
Performance Based Incentives .................................................................................................................8
Non-Profit and Government Entities ..........................................................................................................8
Project Costs .............................................................................................................................................8
Application process ....................................................................................................................................8
Application Attachments ............................................................................................................................9
Incentive Payments ...................................................................................................................................9
System Changes Affecting Incentive Amount ...........................................................................................9
Permits and Interconnection ......................................................................................................................9
Net Metering ................................................................................................................................................9
Contact Information ..................................................................................................................................10
Page 2 of 10
DRAFT PV Partners 2007 Guidebook 6/25/2007
Program Goals
The City of Palo Alto Utilities (CPAU) has offered incentives to encourage the installation of solar
photovoltaic (PV) systems since 1999. The California Million Solar Roofs Bill (SB1, August 2006)
requires an expanded funding commitment by all California electric utilities, with a statewide goal to add
3,000 MW of new PV systems over ten years. CPAU’s PV Partners Program is designed to encourage
high-quality photovoltaic installations on CPAU customers’ premises in support of the Million Solar Roofs
goals.
CPAU’s PV Partners Program budget is approximately $13 million over ten years. The total budget is
divided into ten steps, each funded at $1.3 million. Each step is allocated across four customer and rate
classes: residential on E1 ($221,000), small commercial on E2 and E4 ($507,000), large commercial on
E7 ($442,000), and non-profit/public sector, ($130,000). The rebate levels will decrease over time per
SB1 requirements.
Program Eligibility and Requirements
Applicant
The PV Partners Program is available to retail electric distribution customers of City of Palo Alto Utilities
(CPAU). The Host Customer must be the utility customer of record at the location where the generating
equipment will be located. The System Owner may be the Host Customer, or third party, if the system is
leased. The PV Partners Program Applicant may be the Host Customer, or System Owner, or their
assigned designee. VVhile the Applicant is the primary contact for the PV Partners application process,
the legal party to the Program agreement is the Host Customer and/or System Owner.
To be eligible for an incentive, the Applicant must receive a confirmed reservation notice letter from CPAU
prior to the Applicant receiving final interconnection authorization. If a project cancels due to not meeting
the reservation period, they must reapply to the PV Partners Program prior to receiving a final
interconnection authorization. If a Host Customer ceases to be a retail electric distribution customer of
CPAU, the designated rebate recipient will not be eligible to receive any remaining unpaid incentive
payments.
Installer
All systems must be installed by appropriately licensed California contractors in accordance with rules
and regulations adopted by the State of California Contractors State Licensing Board (CSLB). Installation
contractors must have an active A, B, or C-10 license, or a C-46 license for photovoltaic (PV) systems.
Although not required, installation contractors are encouraged to become certified by the North American
Board of Certified Energy Practitioners (NABCEP). For additional information on NABCEP, refer to
www.nabcep.or.q. CPAU also recommends that the installer be registered with FindSolar.com and meet
the pre-screening criteria.
In all cases, systems must be installed in conformance with the manufacturers’ specifications and all
applicable electrical and building codes and standards.
System Equipment
All major system components (panels and inverters) must be listed on the California Energy
Commission’s (CEC) Eligible Equipment List1 and must be new and not been previously placed in service
in any other location or for any other application. Rebuilt, refurbished, or relocated equipment is not
eligible for a PV Partners incentive. This list is continuously updated by the CEC.
System Size
There is no minimum size requirement for a PV Partners rebate. The maximum PV Partners incentive is
capped at 1,000 kilowattsAc (1 MW).
~ http://www.consumerenergycenter.orglerprebatelequipment.html
Page 3 of 10
DRAFT PV Partners 2007 Guidebook 6/25/2007
To be eligible, the system must be sized so that the amount of electricity produced by the system
primarily offsets part or all of the customer’s electrical needs at the site of installation. The Applicant must
show evidence of the system sizing with the submittal of the initial application. The expected production
of electricity by the system may not exceed the actual energy consumed during the previous 12 months at
the site, as calculated per this formula:
Maximum System Capacity (kWAc) = Previous 12 months electric usage (kWh/year) / 1577 (hours/year).
In the case of Applicants with new or expanded sites where no electric bill or where the existing electric
bill does not reflect the Applicant’s expected expanded consumption, the Applicant must include an
engineering estimate. The engineering estimate must include the appropriate substantiation of the
forecast of the Host Customer site’s annual energy use (in kWh) if the generating system size is based on
future load growth, including new construction, load growth due to site expansion, or other load growth
circumstances. Suggested methods of demonstrating load growth include an Electric Load Sheet2 with
corresponding equipment schedules and single-line diagram; building simulation program reports such as
eQUEST, EnergyPro, DOE-2, and VisualDOE; or detailed engineering calculations.
Energy Efficiency
For residential sites, the Host Customer must include the Residential Efficiency Checklist along with the
PV Partners App_lication. It is also recommended that the Host Customer use the CPAU On-Line Home
Enerqy Analysis3 tool and implement efficiency measures where appropriate.
For commercial sites, the Host Customer should consider having an energy efficiency study prior to
installing a PV system. The Consultant Assistance for Resource Efficiency (CARE) program may provide
assistance or incentives for your energy study.4
Shadinq Analysis
A system is considered to have minimal shading if no obstruction is closer than a distance of twice the
height. Obstructions include any roof equipment, neighboring trees, poles, buildings, or other objects.
Landscaping should be evaluated at the expected mature height, tf there are obstructions, then a
shading analysis is required. Submittals may include a table showing distance to height ratios per
orientation, photo of a Solar Pathfinder, or printouts from the Pathfinder Assistant, or Solmetric SunEye.
Shading results shall be used to estimate the annual energy production. Rebates are not reduced due to
shading results, but CPAU strongly recommends minimizing any shading of the PV modules during mid-
day hours.
Annual Enerqy Production
The annual energy production shall be estimated using the Expected Performance Based Buydown
5(EPBB) Calculator. Use Zip code = 94303, Utility = PG&E, and the appropriate Customer type. While the
PV Partners rebate is not reduced for a design factor, all applications shall use the same methodology for
estimating energy production
Warranty
All systems must have a minimum 10-year warranty provided in combination by the manufacturer and
installer to protect the purchaser against defective workmanship, system or component breakdown, or
degradation in electrical output of more than fifteen percent from their originally rated electrical output
during the 10-year period. The warranty must cover the solar generating system only, including PV
modules (panels) and inverters, and provide for no-cost repair or replacement of the system or system
components, including any associated labor during the warranty period.
2 http:~~www~cit¥~fpa~~a~t~~~rq~p~anninq-c~mmunit¥~d~cuments/L~adsheet-~~NGLE-FAM~LY-RES~pdf
3 http://www.cpau.comlmyutilitiesaccountlenerqyanalysis~ndex.html
4 To qualify for CARE program incentives, check with your CPAU Commercial Account Representative,
6,50) 329-2241.
http://www.csi-epbb.coml
Page 4 of 10
DRAFT PV Partners 2007 Guidebook 6/25/2007
Performance and Permanency
Equipment is intended to be in place for the duration of its useful life. Only permanently installed
systems are eligible for incentives. This means that the PV system must demonstrate adequate
assurances of both physical and contractual permanence prior to receiving an incentive. Physical
permanence is to be demonstrated in accordance with industry practice for permanently installed
equipment. Equipment must be secured to a permanent surface. Any indication of portability,
including, but not limited to, temporary structures, quick disconnects, unsecured equipment, wheels,
carrying handles, dolly, trailer, or platform, will deem the system ineligible.
Meterinq and Data Collection
The PV Partners Program requires accurate solar production meters for all projects that receive
incentives. These meters are separate from the billing meter used for net energy metering.
For systems less than 100 kWAc, meter accuracy of +5% is required. Some inverters have a
performance meter included which meets this.requirement. If not, a separate meter is required to
measure PV energy production. All meters must be listed on the CEC’s Eli.qible Meters list for the PV
Partners Program.
For systems 100 kWAc and larger, a revenue grade meter (.+.2%) is required with remote communications
capability. The meter shall be tested to all applicable ANSI C-12 testing protocols and shall have Interval
Data Recording (15 minutes or less). The system Seller or Installer must retain and provide the System
Owner and CPAU with remote access to 15 minute average data for a minimum of five years. Monthly
System energy production data shall be reported to CPAU for calculation of the performance based
incentive. The Production Data Provider may be the System Owner, Seller, or a designated third party.
All program participants must allow access to the PV production meter for testing, inspection, or data
collection. Installers are encouraged to locate PV production meters in an easily accessible area.
Site Inspections and System Verification
To be eligible for PV Partners Program incentives, all Applicants, Host Customers, and System Owners
must agree to provide CPAU, and/or third parties contracted by CPAU, access to the site and any
available data and information collected on the system for a period up to 10 years.
CPAU will conduct system inspection visits in order to verify that the project is installed as represented in
the application, is operational, interconnected and conforms to the eligibility criteria of the PV Partners
Program. CPAU reserves the right to disqualify installers from future program participation for failed
inspections due to gross negligence, fraud, or uncorrected mechanical failures within 60 days.
Incentive Structure
For PV systems under 100 kilowatts (kW~c), the rebate is paid based on system capacity, measured in
watts. Rebate values for step one are $3.00 per watt for residential and commerdal customers. Because
non-profit and public sector customers aren’t eligible for the 30% federal solar investment tax credit (ITC),
the rebate value for step one is $3.75 per watt.
For systems 100 kW~c, and above, the rebate is paid over a five-year period, based on measured system
energy production (kilowatt-hours). The performance-based incentive (PBI) is fixed for each applicant,
over the entire five-year term.
A project is counted toward each step’s kW trigger once the application is deemed eligible and has been
issued a confirmed reservation. As the number of kilowatts allocated through the confirmed reservations
6 http:flwww.consumerenerqycenter.orq/c.qi-bin/eli.qible meters.cqi
Page 5 of 10
DRAFT PV Partners 2007 Guidebook 6/25/2007
reaches its maximum within any particular step, CPAU wil! move to the next step. If there are any
kilowatts that remain unused in a previous step due to events such as Applicants dropping out of the
process, those kilowatts will be added to the current step.
If the total applications received on the same day exceed the available kilowatts of the current step, all of
the applications for that day will receive the same rebate level. The rebate shall be prorated across the
appropriate steps.
Incentive Tables
3.00
2.80
2.60
2.40
2.20
2.00
1.80
1.60
1.40
1.20
Step
1
2
3
4
5
6
7
8
9
10
TOTAL
$
$
$
$
$
$
$
$
$
$
$
222,000
221,200
221,000
220,800
220,000
222,000
221,400
220,800
221,200
220,800
2,211,200
74
79
85
92
100
111
123
138
158
184
1,144
1
2
3
4
5
6
7
8
9
10
TOTAL
$
$
$
$
S
$
$
S
$
$
S
507,000
506,800
507,000
506,400
506,000
508,000
507,600
507,200
506,800
507,600
5,070,400
$
$
$
$
$
$
$
$
$
$
3.00
2.80
2.60
2.40
2.20
2.00
1.80
1.60
1.40
1.20
169
181
195
211
230
254
282
317
362
423
2,624
Page 6 of!0
DRAFT PV Partners 2007 Guidebook 6/25/2007
Step
1
2
3
4
5
6
7
8
9
10
TOTAL
Budget (S)
$ 441,000
$ 442,400
$ 442,000
$ 441,600
$ 442,200
$ 442,000
$ 442,800
$ 441,600
$ 442,400
$ 441,600
$ 4,419,600
Rebate (S/Watt)
$3.00
$2.80
$2.60
$2.40
$2.20
$2.00
$1.80
$1.60
$1.40
$1.20
kW available
147
158
170
184
201
221
246
276
316
368
2,287
Step
1
2
3
4
5
6
7
8
9
10
TOTAL
Budget (S)
$131,250
$131,350
$130,650
$129,150
$129,800
$129,250
$ 130,050
$ 129,250
$ 129,150
$ 129,200
$ 1,299,100
Rebate (S/Watt)
$3.75
$3.55
$3.35
$3.15
$2.95
$2.75
$2.55
$2.35
$2.05
$1.70
kW available
35
37
39
41
44
47
51
55
63
76
489
Step Small Commercial Large Commercial Non-Profit/Public
1 $0.38 $0.38 $0.47
2 $0.35 I $0.35 $0.44
3 $0.33 i $0.33 $0.41
4 $0.30 $0.30 $0.38
5 S 0.28 S 0.28 S 0.35
6 S 0.25 ! S 0.25 S 0.31
7 $0.23 $0.23 $0.28
8 $0.20 $0.20 $0.25
g $0.18 $0.18 $0.22
10 $0.15 $0.15 $0.19
Page 7 of 10
DRAFT PV Partners 2007 Guidebook 6/25/2007
Capacity Based Incentives
For all systems under 100 kWAc, the rebate will be calculated based on the CEC System Rating in
wattsAc, per this formula:
CEC System Rating (watts~c)= Quantity of Modules x CEC Rating of Photovoltaic Modules
(watts/module) x CEC Inverter Efficiency Rating (%)
Performance Based Incentives
For systems 100 kWAc and greater, the incentive is paid monthly over a 5-year term, based on the actual
energy produced, measured in kilowatt-hours, as measured by the production meter. Monthly production
data shall be provided by the System Owner, Host Customer, or a designated third party. Production Data
Providers may be the Seller or Installer. The monthly production data shall be reported every 30 days in
the electronic format specified by CPAU.
Non-Profit and Government Entities
Government and non-profit entities will be required to submit verification of their tax-exempt status to
receive this incentive amount and shall certify that the system will not receive any federal tax benefits
through financial arrangements for the entire warranty period of the system (i.e., the System Owner if a
third party, which will be receiving tax benefits from the system).
Proiect Costs
No project can receive total incentives (incentives from the PV Partners Program combined with other
programs) that exceed total eligible project costs. The Applicant must submit project cost details to report
total eligible project costs and to ensure that total incentives do not exceed out-of-pocket expenses for the
System Owner. Total eligible project costs cover the solar system and its ancillary equipment. For large,
multifaceted projects where the solar system costs are embedded, applications must include a prorated
estimate of the total eligible costs for the solar system. CPAU has the right to conduct an audit of all
relevant PV system project costs.
Application process
The reservation period for all projects is 12 months. The Applicant completes the PV Partners
Application, with required attachments. If the application is complete, CPAU will send the Applicant a
Reservation Confirmation and Claim Form, and the installation may proceed. Once the system has
passed all required inspections, the Applicant completes the Claim Form and submits it with attachments
to CPAU.
~gmplete PV Partners Application:
- Sign, include attachments, and send to
CPAU
After Receivinq Reservation Confirmation:
- Host Customer completes Net Metering and
Interconnection Agreements and returns to
CPAU.
- Installer has 12 months to apply for permit,
complete the project and get all final
inspection approvals.
-System Owner pays final invoice for system
Review Application:
- If incomplete, or ineligible, return to Applicant.
- If complete, proceed to Step 2
Reservation Confirmation and Claim Form:
- Completes and sends to Applicant.
- CPAU shall also send the Net Metering and
Interconnection Agreements to Host Customer.
Page 8 of 10
DRAFT PV Partners 2007 Guidebook 6/25/2007
After System Passes Final Inspections:
- Returns the Claim Form to CPAU, listing any
changes to system equipment, and includes
all attachments
- For PBI, the designated Production Data
Provider shall report monthly kWh produced
each month to CPAU
After Receivinq Claim Form:
- Reviews Claim Form and attachments
- If complete, process rebate within 30 days
- For PBI, credit Host Customer’s utility account
each month, for 60 months
Application Attachments
¯Recent CPAU utility bill showing electric usage
¯Purchase order or contract for the PV system equipment and installation, with a 10 year warranty
¯Printout of EPBB calculator showing estimate of annual energy production
¯Shading Analysis, if not minimally shaded
¯For residents: Residential Efficiency Checklist for PV Partners
¯For Non-Profits or Public Entity: documentation of tax-exempt
Incentive Payments
Payments will be made to the Applicant, Host Customer, or a third party (as designated), as indicated on
the PV Partners Application or on the Claim Form. CPAU shall process rebate payments within 30 days.
For performance-based incentives (PBI), CPAU will issue the first PBI incentive payment approximately
30 days after the first scheduled performance output meter read.
System Chanqes Affectinq Incentive Amount
If the installed system is smaller than specified in the Application, the incentive will be reduced
proportionally based on the new system size. If the revised system is larger, the incremental rebate will
be calculated using the rebate level available at the time that the change is made. If the size increase
occurs after the expiration date of the reservation period, the Applicant must apply for the increment on
a new PV Partners Application.
Permits and Interconnection
A final approved building permit is required to qualify for a PV Partners rebate. A copy of the signed final
permit is required with the submittal of the rebate Claim Form.
All solar electric systems receiving incentives under the PV Partners Program must be connected to the
local electric utility’s distribution system. The interconnection, operation, and metering requirements for
solar systems shall be in accordance with CPAU’s rules for customer generating facility interconnections.
To connect a solar system to the utility distribution system, Host Customers, and/or System Owners will
be required to execute certain documents such as, but not limited to, Interconnection Agreement and Net
Energy Metering Agreement.
Net Metering
CPAU does not change the billing electric meter when the customer installs PV, since the existing analog
meter spins forwards and backwards.
When a PV system generates more electricity than the building uses in a month, the customer receives
an electric credit on the utility bill. The electric credit is calculated by multiplying the surplus monthly
kilowatt-hours (kWh) by the applicable retail rate (S/kwh). The Net Metering Agreement, which is active
for the life of the PV system, states that CPAU will carry electric credits, but has the right to zero out any
credit not used in 12 months.
Page 9 of 10
EXHIBIT D
CERTIFICATION OF NONDISCRIMINATION
As suppliers of goods or services to the City of Palo Alto, the firm and individuals listed below
certify that they do not discriminate in employment of any person because of race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status,
marital status, familial status, weight or height of such person; that they are in compliance with
all Federal, State and local directives and executive orders regarding nondiscrimination in
employment.
If Proposer is INDIVIDUAL, sign here:
Date:
Proposer’s Signature
Proposer’s Typed Name and Title
If Proposer is PARTNERSHIP or JOINT VENTURE, at least (2) Partners or each of the Joint
Venturers shall sign here:
Partnership or Joint Venture Name (Type or Print)
Date:
Date:
Member of the Partnership or Joint Venture Signature
Member of the Partnership or Joint Venture Signature
If Proposer is a CORPORATION, the duly authorized officer(s) shall sign as follows:
The undersigned certify that they are respectively:
and
Title Title
Of the corporation named below; that they are designated to sign by resolution (attach a certified
copy, with corporate seal, if applicable, notarized as to its authenticity or Secretary’s certificate
of authorization0 for and on behalf of the below-named CORPORATION, and that they are
authorized to execute same for and on behalf of said CORPORATION.
By:Date:
Title:
By:Date:
Title:
071126 S:att/users/Office Procedure and Forms/Certificate of Nondiscrmination