City of Vernon Request for Expressions of Interest and Information (RFI)

Transcription

1 City of Vernon Request for Expressions of Interest and Information (RFI) Potential Wind Energy Project/Wind-Solar Energy Project City of Vernon Light & Power Department 4305 Santa Fe Avenue, Vernon CA Phone: (323) Page 1 of 8

2 I. Introduction The City of Vernon ( City ) owns approximately 18,000 acres of vacant property (the Wind Property ) in the Jawbone Area in Kern County, California. The Wind Property is currently zoned A (Exclusive Agriculture), and, with a rezone, would potentially be suitable for the development of a commercial scale wind energy project. Commercial scale solar facilities are conditionally permitted uses. Adjacent to the Wind Property are approximately 5,000 acres that are not owned by the City (the Solar Property ). The City believes that such land is suitable for the development of solar energy. The City is interested in developing the Wind Property and possibly the Solar Property as a wind farm or combination wind farm and solar farm pursuant to a long-term agreement. The City is seeking information and ideas in connection with the Property. The City s intent in issuing this RFI is to assess its options and identify potential bidders for a possible future Request for Proposals ( RFP ). II. Nature of the RFI This is a Request for Expressions of Interest and Information ( RFI ) from wind and/or solar energy developers interested in constructing wind energy generation facilities and or windsolar energy generation facilities on the Property. This is in no way a commitment of any kind to proceed with any project. This RFI is not a solicitation or request for proposals that will result in a contractual relationship with the City of Vernon or commit the City to enter into a further agreement with any responding party. This should be considered only a request for information that will assist the City in assessing its options for potential development of wind or solar resources. In addition to a response to the information requested here, the City encourages developers to submit additional information that the developers believe the City should consider as part of its comprehensive wind energy development possibilities. The City is not obligated to issue any future RFP as a result of this RFI process. The City reserves the right to discontinue or modify the RFI process at any time. All costs associated with responding to this RFI will be solely at the responder s expense. Respondents are also advised that this will be an open and public process. This RFI and any City issued RFP will utilize a public process, consistent with any requirements of Vernon Municipal Code that may apply, such as Code Section 2.17 et seq. The identity of all respondents, correspondence and responses will be a matter of public record and the City is subject to the California Public Records Act. Please do not submit any documents which you wish to remain confidential. Respondents are solely responsible for the accuracy and quality of the data used in their reviews and the information provided. DISCUSSION OF THE CONTENTS OF THIS RFI WITH ANY ELECTED OR APPOINTED CITY OFFICIAL MAY LEAD TO IMMEDIATE REJECTION OF THE Page 2 of 8

3 RFI PROPOSAL AND MAY BAR THE PROPOSER FROM SUBSEQUENT PARTICIPATION. ALL CORRESPONDENCE TO THE CITY SHOULD BE VIA TO JAVIER VALDEZ: The City will review all responses to this RFI and determine which respondents the City would like to hear more from, if any. The City will consider the expertise of the responding party, the types of technology used, the ability to surmount project constraints and potential concerns, and the overall short term and long term costs to the city. Please do not contact the City, except to provide responses to this RFI, or to ask Mr. Valdez via questions regarding the RFI process. After reviewing the RFI responses, the City will contact each party with whom it wishes to have follow up discussions. III. Highlight of Relevant Facts Relating to Property Related to this RFI is a document entitled, Request for Expressions of interest and Information for a Potential Wind/Solar Energy Project (RFI) Factual Overview for Interested Parties. December That presentation provides substantial additional information. The presentation is available on the city s website at: The following summarizes many relevant facts: The potential Wind Property is currently zoned A (Exclusive Agriculture) and is presently used for grazing. Vernon is offering a potential development opportunity on ~18,000 acres of its own land primarily suited for wind power generation. Approximately 5,000 acres adjacent to the Wind Property appear to be potentially suitable for solar, and the City may consider how development of that property may assist in the development of the City s property, if at all. In February 2010, Vernon sold 12,000 acres of the nearby Red Rock Wind Project ( RRWP ) to NextEra Energy Resources. The Wind Property is well-positioned for renewable power generation in the Jawbone property near Los Angeles. The Wind Property is located in one of the most attractive power markets in the US. Limited remaining privately owned land is available for potential renewable development in the region. Initial studies suggest the possibility that up to 410 MW of wind generation may be supported, depending upon the technology used. The Wind Property includes land controlled through easement rights with Renu Resources ( Easement Land ). A potential rezoning of the military fly zone in the eastern array could further increase the capacity. The western portions of the Property are traversed by the Pacific Crest Trail. No utilities are currently available on the Property. Page 3 of 8

4 Transmission may be available through the Barren Ridge Transmission line, through the CAISO via new routes, or to the HighWind substation. IV. Questions for Respondents A. Mandatory. Responses must include the following information: Company Description. Description of respondent s company and specific experience with similar projects. If respondent would expect to propose a joint project, the respondent should provide this information for all companies involved. Experience. Respondent s development experience. Contact Information. Name of primary contact person(s), and contact information, including . Minimal Impact on Bird Populations. Thorough description of how respondent s company s proposal would limit any potential negative impact on bird populations. Provision of verifiable scientific support for such claims is encouraged. The City desires to limit claims that the potential project may have a significant negative effect on bird populations. Dimensions of Proposed Installations. Dimensions of any installed wind turbines (inclusive of blade heights). Due to permitting constraints, Vernon would look favorably upon projects that incorporate lower turbine heights (under 200 feet is preferred or even lower, if feasible). Project Scope What is your understanding of the physical nature and location of the Property and its major pluses and major challenges for wind or wind/solar development? Please describe the ideal size and capacity of the proposed facility (i.e. wind, wind/solar), along with the reasons why the suggested size and capacity would be appropriate for the Property. Technology Availability and Limitations Given the Project s proposed location, please describe any expectations or concerns about technology related items, including the size, availability, and suitability of wind turbines, foundation requirements, special logistical or cost considerations, and quality, durability and manufacturer warranties of equipment. Regulatory Approval Process Identify any issues of concern related to the process of obtaining all anticipated permits and approvals for the development of the facility. What key uncertainties are known or anticipated in this process at the state and local levels and how would they be overcome? Describe the City s role, if any. Environmental challenges How would you identify possible environmental impacts? What is your experience with the California Environmental Quality Act (CEQA) and/or the National Environmental Policy Act (NEPA). Has your Page 4 of 8

5 company prepared an Environmental Impact Report or an Environmental Impact Statement (EIS) or built projects subject to either an EIR or EIS in California for wind and/or solar projects? Are there outstanding legal challenges to those projects? Have you implemented ongoing mitigation and monitoring measures? For example, have you developed and/or implemented systems for avian protection? Have you developed working relationships with environmental groups? What has been your company s role in scoping and community outreach? (This question seeks background on your company s participation in such processes, not identification of all environmental issues on this specific site). If the City determines to proceed with a project, the City may (or may not) act as the lead agency for such environmental review. Power Purchase Agreement (PPA) State the ideal length of a PPA, terms of service, ancillary services, pricing structures, production and availability guarantees, outages, facility operating criteria, curtailment and start-up and shutdown considerations, insurance and indemnification requirements, default provisions, and any additional information or recommendations for PPA terms and conditions that should be considered. (In making these calculations, all renewable energy credits (RECs) or other environmental benefits attributable to the project will belong or be included in the power price to the City.) If the developer desires to retain a portion of the project output for sale to others, include the details. B. Optional. Respondents Are Encouraged to Answer the Following Questions: Interested Respondents are encouraged, but not required, to also address the following questions and any other information Respondents deem relevant. Such information may include technical, operational, regulatory, commercial, environmental, community involvement or other topics, which are described below. Responses may be submitted only for wind development or for wind and solar, but not just for solar. Joint responses are acceptable. Business Structure Please describe your recommended business structure for the development and operation of the potential Project. Describe the City s role, if any. Capital Requirements, Financing & Indicative Pricing Please describe the anticipated total capital costs, description of cost components, cost uncertainty factors, sources of capital and availability of financing (short- and long-term), anticipated levels of debt and equity, the developer(s) ability to finance project, projected range of pricing for energy, capacity and ancillary services, anticipated incentives, preference of developer to maintain all or a portion of renewable energy credits (RECs) or other environmental benefits attributable to the project, risks of price changes due to changes in prices for commodities, manufacturer quotations, and other materials and services, strategies to reduce pricing and pricing uncertainty, provisions for decommissioning and removal of turbines and any other issues that should be addressed. Describe the City s role, if any. Page 5 of 8

6 Operations and Performance Provide information related to the operations and performance including the optimal wind turbine for the site, anticipated average turbine availability, basis for projections, performance degradation over project life, maintenance plan, facilities, staffing, spare parts, and response time for unscheduled maintenance, scheduled maintenance procedures and frequency (including periodic turbine overhauls or major component replacement/repair), remote communications, control, monitoring and dispatch systems, documented safety and emergency rescue plans and facilities, anticipation of construction and/or operational curtailment due to bird migration, and any additional items to be considered. Timeline Identify a timeline for development. Address any projected uncertainties. V. Optional. Technical and Infrastructure Considerations Responding parties are also encouraged, but not required to provide the City with the following information: Interconnection Please provide information related to the design of the overall electrical interconnection system, strategies for interconnection reliability, security, and energy delivery. Is property condemnation contemplated? What is the City s role? Infrastructure for Construction and Maintenance Provide information related to the infrastructure required to execute the construction and maintenance phases of the Project. Address specialized equipment needs and availability, availability of skilled labor and trained crews, installation of cable and/or transmission interconnection, insurance matters, potential weather and other seasonal impacts on construction, maintenance, production and availability, and any other issues that should be considered. VI. Optional. General Planning Issues Responding parties are also encouraged, but not required to provide the City with the following information: Environmental Issues and other Studies In addition to any wind studies in the possession of the City, describe any studies and field data needed to design and engineer a safe, reliable, efficient, and cost effective Project and any potential environmental impacts. Provide cost and schedule estimates for these studies and include any accepted advanced technologies or methodologies that might be used to reduce data collection costs or to accelerate the collection of required data for licensing and permitting the project. Describe the City s role in facilitating these studies and data collection, if any. Page 6 of 8

7 Public Outreach What has been your company s role in scoping and community outreach? Please identify the anticipated public impacts, benefits, and affected user groups. VIII. Schedule for Submissions to City December 17, City Council authorizes issuance of this RFI. January 23, 2014 at 5:00 p.m. Deadline to submit any questions to Vernon regarding the RFI. Questions regarding the RFI should be sent solely via to jvaldez@ci.vernon.ca.us. Answers to timely submitted questions on the RFI will be posted online at January 30, 2014 at 5:00 p.m. Deadline for RFI responses to be received by Vernon via and in hard copy, in the manner stated below. IX. Format and Delivery of Submission to City. A. Format. Limit your proposal to 20 typed 8.5 X 11 pages, or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments. You may attach a firm brochure if you wish, but it must be as a separate attachment and independent from the required and optional elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1 margin on all boarders. 2. Organize your submittal in the order described above. 3. Provide one (1) unbound original of your firm s response and one electronic version. the response to jvaldez@ci.vernon.ca.us. 4. Prominently label the package: RFI for Wind Energy Project/Wind-Solar Energy Project and include the name of the prime respondent. Deliver the response to: City of Vernon Attention: Javier Valdez 4305 Santa Fe Avenue Vernon, CA Responses are due on or before 5:00 p.m. on January 30, Late responses will not be accepted. Page 7 of 8

8 B. Cover Letter. All responses shall include a cover letter. The cover letter shall the identification of the business entity, including the name, address and telephone number of the business entity; and the name, title, address and telephone number of a contact person. Page 8 of 8