Western Area Power Administration’s FY 2013 Renewable Energy Certificate Purchase

1. Western Area Power Administration’s FY 2013 Renewable Energy Certificate Purchase Sandee Peebles, Western Area Power Administration Chandra Shah, National Renewable Energy Laboratory

2. RRFA Program Overview • Renewable Energy Certificates (RECs) • Renewable Energy Delivered to your Site • Onsite Renewable Energy Assistance • Pre-feasibility Transmission Studies

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

4. Renewable Energy Certificates (RECs) • Also referred to as Renewable Energy Credits, Tradable Renewable Certificates, Green Energy Certificates/Credits, Green Tags, etc. • The renewable energy is not physically delivered to your site; you purchase only the environmental attributes of renewable generation. • This product may be your agency’s best option if no on-site renewable energy project opportunities exist and/or where renewable power delivery is restricted because of physical or institutional barriers. • Western has been facilitating RECs purchases for Federal agencies in the United States since 2003.

5. REC Benefits • No transmission or ancillary services are required. • RECs have no physical constraints. • No impact to your existing power supplier (utility bill does not change). • Can be purchased for leased facilities. • REC purchases can be aggregated for multiple sites. • There is a double bonus if the REC is from a project on Federal or Native American land. • RECs may be used for GHG reduction goals.

6. What RECs Don’t Provide • RECs do not offer protection against fuel price volatility. • The location of the renewable project supplying the RECs is not necessarily near your facility, so there is no guarantee of local benefits (unless you specify a desired REC location). • RECs don’t guarantee a lasting supply of renewable energy. • FEMP REC Quick Guide - http://www1.eere.energy.gov/femp/pdfs/rec_guide.pdf • EPA Green Power Partnership -http://www.epa.gov/greenpower/buygp/types.htm#rec •  DOE Green Power Network - http://apps3.eere.energy.gov/greenpower/markets/certificates.shtml?page=0

7. Federal Renewable and Greenhouse Gas Requirements

8. Energy Policy Act (EPACT) of 2005 Renewable energy goals: 3% of electric energy by FY2007 5% of electric energy by FY2010 7.5% of electric energy by FY2013 and beyond Must be a separate purchase (renewables that are part of the system mix or that are used to meet state RPS requirements do not count towards the goal) “Renewable energy" is electric energygenerated from: Solar, wind, biomass, landfill gas, ocean, geothermal, municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project. Hydrokinetic (run of the river) also qualifies, per EO13423 Implementing Instructions and the EPACT 2005/EO 13423 Renewable Guidance Detailed biomass definition in EPAct 2005, Section 203 Your agency may have a more aggressive renewable goal

9. Executive Order 13423 (2007) & RE Guidance At least half of RE must come from “new” renewable sources “New” = placed into service after January 1, 1999 Renewable Energy Requirement Guidance for EPACT 2005 and Executive Order 13423 (“RE Guidance”) http://www1.eere.energy.gov/femp/pdfs/epact05_fedrenewenergyguid.pdf The ability to use REC or RE purchases towards the EE goal has been phased out (see RE Guidance, Section 4) RECs can still be used to meet the RE goal RECs should be generated in the fiscal year of the purchase. However, RECs generated 6 months prior or 3 months after are allowable (RE Guidance, Section 3.3.4 “Vintage” Requirements)

10. Federal REC Vintage Timeline Allowable RECs Fiscal Year 2013 Jul Oct Dec Jan 2013 Jul Oct Dec 2013 Mar 31 Apr 1 2012 Apr RECs generated from April 1, 2012 through December 31, 2013 can be used to meet FY13 renewable goal.

11. Executive Order 13514 (Oct 5, 2009) Called for each federal agency to establish a percentage reduction target for scope 1 and 2 greenhouse gas (GHG) emissions, relative to a FY2008 baseline As a result, federal government-wide scope 1 & 2 GHG reduction goal of 28% by 2020 Scope 1: Direct greenhouse gas emissions from sources that are owned or controlled by the Federal agency Scope 2: Direct greenhouse gas emissions resulting from the generation of electricity, heat, or steam purchased by a Federal agency Federal GHG Accounting & Reporting Guidance and Technical Support Document (TSD) available at http://www1.eere.energy.gov/femp/program/greenhousegases_guidance.html EO13423 is not revoked by EO13514

12. Executive Order 13514 (Oct 5, 2009) RECs can be used to offset Scope 2 GHG emissions Use E-Grid non-baseload GHG emission factors to determine GHG benefit. Renewable resource location and type are important. Input a separate line in the annual sustainability data reporting spreadsheet for each renewable resource type and location (ZIP Code). Biomass: Considered GHG neutral except for methane and nitrous oxide. CO2 emissions are tracked but not included in GHG targets. Emission factors vary depending on biomass type. Check TSDTables D-2 and D-3 for appropriate emission factors. Consider these issues when filling out your Statement of Intent, especially if GHG reduction is your primary goal

13. 2007 E-Grid Regions and CO2 Equivalent Emission (MT/GWh) – Non Baseload eGRID2010 Non-Baseload Values, 2007 Generation 2005 2007 CAMX: 492 475 ERCT: 509 498 SRMV: 572 532 NEWE: 608 549 AZNM: 546 551 NYCW: 694 561 NWPP: 616 583 FRCC: 599 586 AKGD: 670 620 NYUP: 690 628 NYLI: 687 635 SPSO: 628 653 AKMS: 663 666 U.S.: 721 692 SRSO: 812 707 RMPA: 737 708 HIOA: 758 743 HIMS: 774 751 SRVC: 816 757 RFCE: 833 762 RFCM: 770 822 MROE: 846 869 SRTV: 911 874 SRMW: 958 887 SPNO: 989 892 RFCW: 909 904 MROW: 985 908 Highest 549 628 869 583 822 635 908 762 561 904 887 708 892 475 874 757 653 551 532 707 Lowest 498 666 586 743 620 Values in Red are above national average (i.e., SRVC at 812) Values in Green are below national average, (i.e., SRMV at 572) 751

14. Western Area Power Administration’s REC Purchase Process

15. Statement of Intent (SOI) • Good faith non-binding agreement • Authorizes Western to seek RECs on your behalf • Identifies: • Quantity (may be a range) or Available Dollars • Price • Period of Performance (contract length/duration) • Special considerations • Renewable type • Age (in-service date) • Location (Do they need to come from a specific area/region) • REC delivery date (not before xx/no later than xx) • SOI Form http://ww2.wapa.gov/sites/western/renewables/pmtags/Documents/RR_SOIfeds.doc Note that the webpage will ask for a password but its not needed (hit cancel twice).

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

17. Proposal Review / Evaluation • A team will review the proposals using the best value approach to determine if they: • Meet the minimum RFP criteria • Meet the needs of each participant • Quantity, price, duration, special considerations • Demonstrate acceptable past performance

18. Interagency Agreement (IA) • Authorizes Western to contract for RECs within scope of requirements identified in SOI. • Required for All Federal Agencies • Commitment of fund availability for the current year. • Every effort made to secure future appropriations. • Must include Economy Act Determination and Finding (D&F). • Nominal $500 annual fee for Western services. • Federal Agencies may decide when they wish to receive and pay for the RECs. • Federal Agencies will pay the REC provider directly. • Western will NOT sign any IA other than its own. • Western will enter into a contract with each Non-Federal Western preference customer in lieu of an IA. • IAs or contracts must be executed by September 30th.

19. REC Contracts • Western uses its Power Marketing Authority to enter into contracts with the suppliers • Contract(s) will be prepared as needed. • Contracts are between Western and the supplier. • Western will ensure the contract meets your requirements as defined in the IA.

20. Major Milestones • Statement of Intent due April 19, 2013. • Request for proposals (RFP) June 3, 2013. • Proposals due to Western July 3, 2013. • Interagency Agreements must be executed by September 30, 2013. • REC contracts signed by October 31, 2013.

21. For More Information 2013 REC Purchase Project Manager DOE, Energy Efficiency & Renewable Energy Sandee PeeblesTracy Logan Phone: 916-353-4454 Phone: (202) 586‑9973 FAX: 916-985-1956 tracy.logan@ee.doe.gov peebles@wapa.gov Western’s Lead Renewable Energy Contact National Renewable Energy Laboratory Randy ManionChandra Shah Phone: (720) 962-7423 Phone: (303) 384-7557 manion@wapa.govchandra.shah@nrel.gov Renewable Resources for Federal Agencies http://ww2.wapa.gov/sites/Western/powerm/pmtags/Pages/default.aspx