HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/12/2008 - RESOLUTION 2008-106 AUTHORIZING A GRANT AGREEMENT ITEM NUMBER: 3
AGENDA ITEM SUMMARY DATE: November 12, 2008
FORT COLLINS CITY COUNCIL STAFF: Mike Freeman
SUBJECT
Resolution 2008-106 Authorizing a Grant Agreement with the U.S. Department of Energy and
Project Agreements with Colorado State University,Latimer County,the Governor's Energy Office,
and Other Entities, to Receive Grant Funds for Development and Demonstration of a Coordinated
and Integrated System of Mixed Distributed Electric Resources.
RECOMMENDATION
Staff recommends adoption of the Resolution.
FINANCIAL IMPACT
The total budget for the project is $11.2 million. This Resolution authorizes the City Manager to
execute the agreement with the Department of Energy and enter into subcontract agreements with
the project partners that outline, per the grant submittal, how matching funds are contributed and
DOE funds are distributed among the partners (a more detailed summary of the matching funds is
included as Exhibit A to the Resolution).
Total project budget: $11,188,349
Total matching funds: $ 4,864,969
Funds requested from DOE: $ 6,323,380
EXECUTIVE SUMMARY
This project will modernize and transform a portion of the electrical distribution system in the City
by developing and demonstrating a coordinated and integrated system of mixed distributed electric
resources, including renewable generation (solar), rotary- and inverter-based generation, and
demand response methods, that will reduce peak loads on multiple distribution feeders in the
downtown area by up to 30% and deliver improved efficiency and reliability.
BACKGROUND
The applicant for the overall project is the City of Fort Collins. The project will address the
research, development, and demonstration of a coordinated and integrated system of 3.5 MW of
mixed distributed resources in Fort Collins to achieve a 20-30% peak load reduction on multiple
distribution feeders. Fort Collins is well positioned to execute this contract due to the unique
November 12, 2008 -2- Item No. 3
combination of world-class research facilities at Colorado State University, participation of global
industry leaders and local entrepreneurs able to commercialize the technology, the City of Fort
Collins focus on and investments in clean energy as a key pillar of future growth, the presence of
a city-owned utility and extensive community support.
The methods used in this project involve the monitoring, aggregation, distribution system
integration, dispatch, and verification of distributed generation, renewable energy, and demand
response resources (Distributed Energy Resources or DER) for reducing peak loading from 20 to
30% on 2 feeders within Fort Collins Utilities' electric distribution network. Over 3.5 megawatts
(MW) of DER from approximately 5 participant locations will be aggregated with a mix of
distributed generation sources, including renewable generation, rotary- and inverter-based
generation.The demand response capabilities will be aggregated from a mix of heating,cooling,and
ventilation loads;process loads;and thermal storage. Intentional Islanding will be demonstrated at
one or more locations on one of the feeders.
The benefits of this smart-grid technology include enhancing the security and reliability of the
energy infrastructure, facilitating recovery from disruptions; saving costs; new distribution system
configurations;management-friendly operations;and environmental rewards from using renewable
energy with demand response solutions. The Project will be used to develop and demonstrate key
technologies expected to have strong commercial application,including three interacting technology
platforms to manage the DER mix and demonstrate peak load reduction, advanced mixed-fuel
technology, low-cost grid parallel switchgear, and simulation and robust controller design of DER
based solutions.The major impact of the project will be modernizing the local electric grid by using
the dynamic real-time state of the grid with the explicit benefit of providing a more efficient and
updated grid capable of incorporating more renewable sources.
The City of Fort Collins and the City-owned Fort Collins Utility will provide leadership for this
project, with a strong focus on growing and retaining clean energy companies, support for a wide
variety of clean energy initiatives, including the establishment of a Zero Energy District within the
city("FortZED"), and increasing the penetration of local renewable energy sources. Other project
participants include Latimer County, CSU, InteGrid Lab,the Community Foundation of Northern
Colorado;and the Governor's Energy Office. Private sector participation spans local companies and
worldwide technology leaders. Manufacturers include; Advanced Energy (innovative power and
control technologies); Woodward (largest provider of energy control and optimization solutions);
Spirae, (renewable energy and distributed power controls and solutions); and Eaton, (global leader
in electrical systems and components). These companies are critical to commercialize the
technologies developed under this grant. Consultants and end users include The Brendle Group
(engineering consulting in energy efficiency)and New Belgium Brewing Company(a leading craft
brewery).
Mike Freeman, Fort Collins Chief Financial Officer, is project director and principal investigators
include Patty Bigner, Fort Collins Utilities; Dr. Peter Young, Colorado State Univ.; Dr. Sunil
Cherian, Spirae; Geoff Hemsley, Woodward; Babette Cornell, Larimer County; Robert Yanniello,
Eaton; Eric Seymour,Advanced Energy; Judy Dorsey,The Brendle Group; and Jim Spencer,New
Belgium.
RESOLUTION 2008-106
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING A GRANT AGREEMENT WITH THE U.S. DEPARTMENT OF ENERGY
AND PROJECT AGREEMENTS WITH COLORADO STATE UNIVERSITY, LARIMER
COUNTY, THE GOVERNOR'S ENERGY OFFICE AND OTHER ENTITIES, TO RECEIVE
GRANT FUNDS FOR DEVELOPMENT AND DEMONSTRATION OF A COORDINATED
AND INTEGRATED SYSTEM OF MIXED DISTRIBUTED ELECTRIC RESOURCES
WHEREAS, the City has applied for and been awarded grant funds from the U.S.
Department of Energy("DOE")in order to carry out a project intended to modernize and transform
a portion of the electrical distribution system in Fort Collins (the "Project"); and
WHEREAS the Project will include research, development and demonstration of a
coordinated and integrated system of 3.5 megawatts of mixed distributed resources in Fort Collins
to achieve a twenty to thirty percent reduction in peak loads on multiple distribution feeders and to
deliver improved efficiency and reliability; and
WHEREAS, the mixed distributed electric resources to be utilized by the Project include
renewable generation(solar)as well as rotary-based and inverter-based generation,and the Project
will further emphasize the use of demand response methods; and
WHEREAS,the City has worked with several cooperating government and private entities
to create a unique combination of world-class research facilities, global industry leaders and local
entrepreneurs to develop and plan the Project; and
WHEREAS, the project partners working with the City to provide matching contributions
and to implement the Project include Colorado State University, Larimer County, the Governor's
Energy Office, New Belgium Brewing Company, Advanced Energy, Brendle Group, Caterpillar,
Eaton, Spirae, and Woodward Governor(collectively referred to as the "Project Partners"); and
WHEREAS, the total cost of the Project is estimated at$11,188,349; and
WHEREAS,the DOE grant funding forthe Project totals$6,323,380,and the matching funds
required for the Project total $4,864,969, as described in the Summary of Matching Contributions
attached hereto as Exhibit A and incorporated herein by this reference; and
WHEREAS, to receive the grant funds, the City must sign a Grant Agreement (the "Grant
Agreement") with DOE, a copy of which is on file in the office of the City Clerk and available for
public inspection; and
WHEREAS,to implement the Project,the City must also enter into subrecipient agreements
(the "Project Agreements")with each of the Project Partners, incorporating the requirements of the
Grant Agreement and specifying the agreed upon grant funding and matching contribution shares,
as described in Exhibit A; and
WHEREAS,the City is authorized,under Article II, Section 16 of the Charter of the City of
Fort Collins and Section 29-1-203, C.R.S.,to enter into intergovernmental agreements, such as the
Grant Agreement and the Project Agreements,to provide any function, service or facility; and
WHEREAS,City staff recommends that the City Council authorize the Grant Agreement and
the Project Agreements as described herein.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Manager is hereby authorized to enter into a Grant Agreement
with DOE for the receipt of grant funds,to be used for research,development and demonstration of
a coordinated and integrated system of 3.5 megawatts of mixed distributed resources in Fort Collins
to achieve a twenty to thirty percent reduction in peak loads on multiple distribution feeders, on
terms and conditions consistent with the terms of this Resolution,along with such additional terms
and conditions as the City Manager, in consultation with the City Attorney, deems necessary and
appropriate to protect the interests of the City.
Section 2. That the City Manager is hereby further authorized to enter into Project
Agreements with each of the Project Partners to describe the grant funding shares and matching
contributions for each, and to outline each party's responsibilities for carrying out the Project, as
described in the project application submitted to DOE,on terms and conditions consistent with the
terms of this Resolution, along with such additional terms and conditions as the City Manager, in
consultation with the City Attorney,deems necessary and appropriate to protect the interests of the
City.
Passed and adopted at a special meeting of the Council of the City of Fort Collins this 12th
day of November A.D. 2008.
Mayor
ATTEST:
City Clerk
EXHIBIT A
Summary of Matching Contributions:
City of Fort Collins 11,145 In-Kind
City of Fort Collins Utilities 80,000 Cash
City of Fort Collins Utilities 109,663 In-Kind
City of Fort Collins Facilities 281,197 In-Kind/Cash
City of Fort Collins Facilities 28,500 Cash
City of Fart Collins Facilities 60,000 Cash
City of Fort Collins Facilities 34,488 In-Kind
City of Fort Collins Facilities(Comm Found) 300,000 Cash
Larimer County 35,000 Cash
Larimer County 1,464 In-Kind
New Belgium Brewing 37,500 In-Kind
New Belgium Brewing 263,100 In-Kind
New Belgium Brewing 1,699,400 Cash
New Belgium Brewing (Comm Found) 100,000 Cash
Advanced Energy 66,000 In-Kind
Advanced Energy 52,000 In-Kind
Brendle Group 20,217 In-Kind
Caterpillar 94,000 In-Kind
Eaton 115,000 In-Kind
InteGrid (Gov Energy Office) 100,000 Cash
InteGrid (Gov Energy Office) 150,000 Cash
InteGrid (Comm Found) 75,000 Cash
Spirae 587,050 In-Kind
Spirae 116,500 In-Kind
Woodward 55,368 In-Kind
Woodward 62,472 In-Kind
Colo State Univ 84,489 In-Kind/Cash
Colo State Univ Facilities 153,876 In-Kind/Cash
Colo State Univ Facilities (Comm Found) 25,000 Cash
Colo State Univ Facilities 66,540 In-Kind
$ 4,964,969 Total