May 25, 2018 Request for Proposals No. 28017 Offsite Virtual Net Metering I. Introduction The Rhode Island Airport Corporation (RIAC) seeks proposals from qualified enterprises to provide offsite virtual net metering through which any net metering credits will accrue to the benefit of RIAC (the RFP). Respondents are free to propose any development model that satisfies the requirements of chapter 26.4 of title 39 of the Rhode Island General Laws. Respondents will have sole responsibility for planning, permitting, designing, installing, financing, operating, and maintaining the virtual net metering system. II. General Background RIAC manages the State of Rhode Island’s six airports and is a subsidiary of the Rhode Island Commerce Corporation (CommerceRI). RIAC was created on December 9, 1992, as a subsidiary public corporation, governmental agency, and public instrumentality having a distinct legal existence from CommerceRI and the State. RIAC assumed responsibility for the State’s six airports on July 1, 1993. The powers of RIAC are vested in a seven-member Board of Directors that is authorized, pursuant to its Articles of Incorporation and the Lease and Operating Agreement among the State of Rhode Island, the Rhode Island Department of Transportation, and RIAC, dated as of June 25, 1993, to undertake the planning, development, management, and operation of the six airports —T.F. Green State Airport, North Central State Airport, Newport State Airport, Block Island State Airport, Quonset State Airport, and Westerly State Airport. Chapter 26.4 of title 39 of the Rhode Island General Laws governs net metering of renewable energy in the State of Rhode Island and allows a “public entity,” defined by R.I. Gen. Laws § 39- 26.4-2(12), to net meter from remote renewable energy resources. As a public entity, RIAC seeks proposals from qualified enterprises to develop renewable energy generating system(s) that may, in accordance with the public entity net metering financing arrangements defined in R.I. Gen. Laws § 39-26.4-2(7), virtually net meter to existing RIAC electric accounts. Chapter 26.4 of title 39 of the Rhode Island General Laws also governs the size of eligible net metering facilities and the amount of net metering credits that a customer may claim. For purposes of this RFP, RIAC is seeking projects that can provide net metering credits for its multiple electric accounts that are eligible for net metering credits for between 17 million and 18 million kWh of electricity per year. III. Proposal Details RIAC seeks proposals from qualified enterprises to develop one or more renewable energy generating system(s) that will virtually net meter to existing RIAC electric accounts. RIAC intends to use, through virtual net metering, the electricity generated by eligible net metering systems to reduce its electric costs and obtain electric price stability. The maximum size of a proposed renewable energy net metering system under R.I. Gen. Laws, chapter 39-26.4 is 10MW AC nameplate capacity. Respondents may submit more than one proposal. RIAC may move forward with more than one proposal if economically beneficial, or it 1 may not move forward with any proposals if they are not in RIAC’s best interests. In designing the proposals, Respondents must demonstrate that they can achieve the following goals: 1. The proposal must not exceed the estimated amount of electricity used by RIAC on an annual basis; 2. The proposal shall not utilize RIAC-owned properties; 3. The proposal must result in a Net Metering Credit that is never less than zero ($0), with no downside risk to RIAC over the term of the agreement; 4. The proposal must maximize the Net Metering Credits for RIAC to the extent allowed under RIGL to reduce overall utility costs; 5. Respondents must be able to secure all rights, permits, approvals, and agreements with all local, state, federal, and any other required entities; 6. The proposal must deliver Net Metering Credits beginning as soon as practicable after the contract; and 7. The proposal shall not result in upfront or run-rate costs incurred by RIAC. Through this solicitation, RIAC seeks the lowest price for Rhode Island-based renewable electricity in units of $/kWh. The generated electricity will be virtually net metered against RIAC’s electric accounts. The proposed development may be part of a public entity net metering financing arrangement as allowed by R.I. Gen. Laws § 39-26.4-2(14). Proposals must address how the proposed net-metering system will • Utilize or not utilize Renewable Energy Credits; • Utilize or not utilize Production Tax Credits for Renewable Energy; • Utilize or not utilize distributed generation (DG) contracts; • Utilize or not utilize available grant funds; • Assure compliance with all applicable sections of chapter 26.4 of title 39 if the R.I. Gen. Laws; • Interconnect to the local grid; • Comply with any other required issues, including storm water permitting, renewable resource certification, etc. Respondents are responsible for all aspects of the project, including permitting, site acquisition, site development, construction and installation, interconnection to the local grid, and securing all certifications and ongoing operations and maintenance, if applicable. IV. Submittal Criteria Respondents shall provide a written description indicating the proposed approach to the project. The scope of work should contain sufficient detail on methods and procedures to be employed to clearly define how Respondent will complete work tasks. RIAC encourages Respondents to provide specific examples of how similar methods may have been used on other successful projects. Proposed projects that are specific and highly developable are preferred. 2 The proposal shall include the following items to assist in the evaluation: 1. Project Description Describe the type of renewable energy system proposed, including the renewable energy resource utilized (wind, solar, hydroelectric, etc.), nameplate capacity (AC and DC), and estimated capacity factor. The description also should include the projected monthly MWh output for the proposed site(s). The description should include details about the technology (ground mount, wind, rooftop) product components, including, but not limited to type of solar panels/wind turbines, inverters, and generation and product warranty information. The description also should include specifics regarding annual degradation factor, production estimate methodology, and project life. 2. Project Location Identify the proposed project location, including proximity to the local grid and ability of the local grid to accept the generated power. The project must be located on property not owned by RIAC. Identify whether Respondent has site control, and if so, describe the form of site control (letter of intent, land lease, purchase option). 3. Project costs Provide an estimate of the total costs of this project, including, but not limited to the cost of system design, installation, all applicable permitting and certification costs, and grid interconnection costs. 4. Project Timeline Provide a detailed schedule for project implementation at the proposed site(s), including system design, property acquisition as applicable, permitting construction/installation, grid interconnection completion date, impact study date, construction start date, commercial operation date, and the date on which the project will begin delivering Net Metering Credits. Pre-application reports must be submitted where applicable. 5. Project Benefit Describe the compensation (via a Net Metering Credit) that will accrue to the benefit of RIAC. Provide a monthly pro forma for the first three (3) years. Under no circumstances shall the monthly Net Metering Credit be less than $0. The description of the Project Benefit shall include an example of how the Net Metering Credit will appear on RIAC’s electricity bills and describe the mechanics for payment to both Respondent and The Narragansett Electric Company d/b/a National Grid. Include the final cost of the project to RIAC for electricity supplied, calculated over the life of the project. Projects should specifically include both Fixed Price (PPA) options and NMC Discount Rate options for both 20 and 25 year terms, listing escalators, if applicable, on each. Proposals can provide: 3 A. The price per kWh to RIAC of Net Metering Credits to be provided to RIAC for the electricity generated by the project; and/or B. The percentage of each Net Metering Credit generated by the project that the Respondent proposes to keep as payment for the Net Metering Credit, in which case the proposal must include a description of the methodology that the Respondent uses to calculate the value of the Net Metering Credits. C. Respondents are encouraged to propose an annual minimum Net Metering Credit All proposals must include Respondent’s best price to RIAC in $/kWh and/or percentage of Net Metering Credit for the renewable electricity over the life of the project, as well as a promised amount of renewable generation annually. The best price also must be expressed as a fixed price for ease of comparing proposals. 6. Project Oversight Describe how RIAC will be able to monitor performance of the proposed site(s), the system as a whole, and compliance with the terms of any agreement entered into between Respondent and RIAC. 7. Project Financing Describe in detail how Respondent plans to finance the project, including the availability of capital resources. Respondents should describe their bonding capacity as it relates to performance. Respondents shall not expect or include any capital outlay from RIAC. 8. Performance Guarantee(s) Describe all performance guarantees Respondent will provide to RIAC throughout the term of the agreement, including but not limited to any “Energy Performance Guarantees,” “Energy Production Guarantees,” and “not-to-exceed Degradation Guarantees.” 9. Sample Contracts Provide all sample contracts/agreements that Respondent would request that RIAC sign in connection with the proposal. 4 V. Experience and Qualifications Each proposal shall include the following information to permit RIAC to evaluate the qualifications of Respondents: 1.