New renewable energy process streamlines projects

  • Published
  • By Amy Ausley
  • AFCEC Public Affairs
Tyndall Air Force Base, Fla. --  Renewable energy projects are the buzz word throughout the Air Force, but the road from the initial idea to actual completion of a project is usually long and complicated.

Simplifying the process was the goal of a recent Enhanced Use Lease/Power Purchase Agreement Rapid Improvement Event held at the Air Force Civil Engineer Center, San Antonio, Texas.

The RIE was attended by multiple groups with key stakes in the Air Force renewable energy game including representatives from several major commands, the Secretary of the Air Force's Installations and Energy office and several divisions from the newly formed AFCEC.

Two of the preferred vehicles used to fund and complete renewable energy projects are enhanced-use leases and power purchase agreements. EULs are partnerships between installations and commercial developers to lease and develop non-excess Air Force property. Energy generated by an EUL renewable energy project is sold to the local utility and the base receives an in-kind consideration. PPAs are partnerships between the installation and commercial developers to use Air Force property with the Air Force purchasing the energy generated. Both EULs and PPAs previously had separate, complex processes for execution and sometimes the lines were blurred between the two.

New process improvements are coming.

"We have created a single process which is the same for both EULs and PPAs and it's called the renewable energy Process," said Ken Gray AFCEC Energy Directorate Rates and Renewables Division chief. "Some projects may be EULs, some may be PPAs, some may have components of both, but it's a single process."

The group came to an agreement on standardized terms and a single set of phases and milestones to move from one step to the next.

The revised renewable energy process consists of 6 phases:

Phase 0 - Opportunity: In this phase, the base and MAJCOM do early project development, gain internal consensus about the project and decide to commit the Air Force property and resources. This may include a site visit by AFCEC, beginning the planning requirements for the environmental impact analysis process which is the first environmental planning step for the National Environmental Policy Act review, as well as conducting an opportunity assessment on the potential resource strength, land availability and economics. AFCEC then provides the privatization executive steering group a vector advising it is ready to move forward with development of the idea or opportunity as a project.

Phase 1 - Project Development: This includes strategic basing and encroachment reviews, the full NEPA document, the development of the lease and the request for proposal as well as a feasibility study which satisfies the requirements of a business case analysis. IEEE 1547 coordination relating to the electrical connection takes place in this phase, and then the final step in this phase would be the ESG's approval to release the RFP.

Phase 2 - Project Acquisition: Phase 2 includes the advertising, developer/proposer site visit and source selection. PPAs must get approval from the Office of the Secretary of Defense during this phase for use of long-term PPA authority. The final step is ESG approval of the selected partnership with OSD authorization of the actual selected vendor or developer.

Phase 3 - Project Execution: To complete and execute the project, parties would have any final discussions on the lease or the contract during Phase 3. Final OSD certification comes during this phase as well. Legal agreements are signed in the form of a lease and contract. The last step is to issue the notice to proceed to the contractor.

Phase 4 - Design/Construction: Phase 4 includes design and construction of the actual renewable generation including the electrical interconnection and final approvals. Phase 4 ends with the energizing of the project in whatever form of energy it produces.

Phase 5 - Management: Phase 5 is the long-term operation and maintenance of the project and managing the portfolio. It eventually includes the decommissioning and removal of the plant and restoration and return of the property to the Air Force.
Terms used in EULs and PPAs are now standardized for the RE process. Opportunity assessment refers to the early study document which evaluates and documents the potential for a project. A feasibility study is the last complete analysis of a project's structure, including the contract lease and finances. The analysis of the natural resources at a location is called the resource analysis.

The next challenges for the group will be to drill down on the details for the action steps in each phase, continue to standardize terms across the process and then make updates to the RE playbook. This will document and allow common real-time access to the process and key documents.