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HomeMy WebLinkAboutMINUTES - 10282014 - C.42RECOMMENDATION(S): APPROVE and AUTHORIZE the Public Works Director's, or designee's, execution of a PG&E Interconnection Agreement for Net Energy Metering of Solar or Wind Electric Generating Facilities of 1,000 kW or Less, Other Than Facilities of 30kW or Less ("Agreement") for the Solar Photovoltaic Installation at 151 Linus Pauling Drive, Hercules, for Employment and Human Services Department. FISCAL IMPACT: The solar photovoltaic installation project is funded by a Greenhouse Gas Reduction Grant from the Bay Area Air Quality Management District (“Air District”). Required matching funds of $35,000 will come from the Employment and Human Services Department (“EHSD”) budget as EHSD is the occupant of 151 Linus Pauling. Additionally, the County will receive an estimated $166,000 spread over 5 years through a California Solar Initiative rebate program, which can be applied to project costs. BACKGROUND: The solar photovoltaic system (“solar system”) involves constructing steel carport canopy structures with solar panels mounted on top of the canopy structures. The solar canopies will be located in the parking lot and will provide shade to the parked cars in addition to generating electricity. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 10/28/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Ramesh Kanzaria, (925) 313-2000 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: October 28, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: , Deputy cc: PW Accounting, PW CPM Interim Division Manager, PW Energy Program Manager, PW CPM Clerical, Auditor's Office, County Counsel's Office, County Administrator's Office, County Administrator's Office C.42 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:October 28, 2014 Contra Costa County Subject:Execution of PG&E Interconnection Agreement for the Solar Photovoltaic System at 151 Linus Pauling Drive, Hercules (WH268B) BACKGROUND: (CONT'D) During the first year of operation, the solar system is estimated to decrease the energy bill by approximately 80%. Based on the latest 12 months electric billing, the savings amount to approximately $70,000. The energy cost savings from a reduced electric bill will compound as utility costs continue to increase. Given the industry’s expectation that utility costs will continue to rise over the next 20 years, the solar system is estimated to save the County a total of $2 million over the span of 20 years. On March 11, 2014, the Board of Supervisors awarded a construction contract to Borrego Solar Systems, Inc. in the amount of $891,743 for the subject project. A utility interconnection agreement between the County and PG&E is required for this solar power project. This is because the solar system will tie back to the utility grid and the Agreement establishes the conditions under which the utility will provide service. The Agreement also establishes the net energy metering arrangement for solar generating facilities so that power produced is credited at retail electric rates to the County. Net energy metering is an important component to making these projects cost effective. CONSEQUENCE OF NEGATIVE ACTION: If the Agreement is not executed, the solar system cannot be tied into the utility grid and the project would not proceed and the grant funds would need to be returned to the Air District. CHILDREN'S IMPACT STATEMENT: Not applicable.