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SampleStudentPlan3.pdf

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Plan to build solar farms on large Eugene-area parking lots through

public-private partnership

Theodore Sweeney

PPPM 3331

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Table or Contents

List of Figures..................................................................................................................................Page 3

Indentified issues and problems.......................................................................................................Page 3

Objectives to be achieved................................................................................................................Page 5

Alternative ways to achieve goals...................................................................................................Page 6

Policies to be adopted......................................................................................................................Page 7

Task List..........................................................................................................................................Page 9

References......................................................................................................................................Page 12

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List of Figures

Figure 1: Land use map of the city of Eugene.................................................................................Page 4

Figure 2: Eweb Power resources....................................................................................................Page 5

Figure 3: Fred Meyer One Stop Shopping.......................................................................................Page 7

Figure 4: Walmart............................................................................................................................Page 8

Figure 5: Autzen Stadium................................................................................................................Page 8

Figure 6: Basic Design of the Project..............................................................................................Page 10

Identified Issues and Problems

Conflicting Goals; The 2004 update to the Eugene Springfield Metro Plan included a variety of

objectives for the development of energy resources for the Eugene Springfield metro area. Some of

these goals would seem to contradict others, in the absence of creative solutions. For example, the

Energy Element of the Metro Plan states the following objective;

Minimize negative environmental effects associated with energy production and use

and encourage the utilization of energy sources having the least negative environmental

impact.

This is a clear-cut directive for Metro area energy programs. However, the realization of this objective

becomes more challenging when it is considered alongside another objective from the same section of

the plan;

Continue and intensify efforts to allocate land uses in a manner that creates a compact

growth form for the metropolitan area.

Power projects take up a lot of space, especially those that provide clean (green) energy. Eugene's

Urban Growth Boundary, a requirement of Oregon law since the 1970s, protects surrounding

agricultural land, wetlands, and woodlands from sprawling development. There is no empty land

within the urban growth boundary on which to place clean energy projects. (See Figure 1)

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Figure 1: Zoning map for the city of Eugene. Source (with zoomable version): http://www.eugene-

or.gov/portal/server.pt?open=512&objID=228&PageID=1473&cached=true&mode=2&userID=2

What kind of solutions can bring these two ideologies together? How can we provide clean energy to

the Eugene-Springfield Metro Area without compromising the Urban Growth Boundary and the

goal of compact (dense) development?

Environmental Harm; Another conflict exists between the stated energy objectives of Eugene-

Springfield Planners and the current reality. Eugene-Springfield energy objectives call for “the

utilization of energy sources having the least negative environmental impact.” On its website, the

Eugene Water and Electric Board (EWEB) gives a breakdown of the sources of the power it sells to

Eugene (Figure 2). The majority of EWEB's power (68%) comes from a single source, hydroelectric

generation. While hydropower is carbon neutral, it has other demonstrated and serious impacts on

water quality, river ecosystems, and fish (Rosenbaum et al. 1997, Bunn and Arthington 2002). This

heavy reliance on hydropower to keep the lights on in Eugene does not satisfy the goal of energy

production with the “least negative impact.” How can we implement energy projects in the Eugene-

Springfield Area that operate with the least possible ecological impact?

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Figure 2: EWEB power resources. Source: http://www.eweb.org/content.aspx/df5903b2-f728-4df8-

979b-9693dc624aa0

Objectives to be Achieved

Clean Energy; This plan will provide a source of clean energy to the city of Eugene through the use of

photovoltaic arrays (solar power).

Compact Growth: This plan will establish an energy project or energy projects within the city limits of

Eugene without any amendment to the placement of the urban growth boundary. The project or

projects will be established without changing the basic zoned function of any land in the city. The

project or projects will be established without altering any ecological contribution made by the land

they will be established on.

Creative Funding: This plan will establish a public-private partnership or public-private partnerships to

provide the resources for the project or projects. The plan will result in the mutual benefit of

stakeholders.

Replicability: The plan will provide for as many repetitions of the described project as there are

interested stakeholders. The more reiterations of the plan, the more these objectives will be addressed

for the city of Eugene.

Exposure: The plan will make sustainable power generation conspicuous to the citizens of Eugene and

Springfield, to promote community pride and foster a heightened sense of the need for conservation.

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Alternative Ways to Achieve Goals

The adopted plan project design is a series of photovoltaic arrays placed on support structures over

land devoted to asphalt parking space. The parking space is preserved on the existing level, while a

second level is added above devoted to solar energy generation. These measures are described in

detail in “Policies to be Adopted,” below. The following section will focus on possible alternatives to

the chosen plan.

Alternative #1: Rooftop Solar

Design: Photovoltaic Arrays would be placed on the roofs of interested businesses with large, flat

expanses of roof area. The costs of purchasing and installing the solar panels would be shared between

the business and the city of Eugene, with the final cost sharing ratio agreed upon between these

stakeholders but with the city of Eugene's stake falling between 50% and 65%. The power generated

would be sold to EWEB by the business hosting the Photovoltaic system under the terms of a power

purchase agreement (see below).

Negative Elements: The majority of roofs with large, flat surfaces are not built to support substantial

additional weight. Reengineering and retrofitting these roofs to handle a significant number of solar

panels would add sustantial costs to the project.

Alternative #2: Urban Wind Farm

Design: Wind turbines would be erected on City of Eugene property, and the property of interested

private parties. The costs of purchasing and installing the turbines would be shared between the private

party and the city of Eugene, with the final cost sharing ratio agreed upon between these stakeholders

but with the city of Eugene's stake falling between 50% and 65%. The power generated would be sold

to EWEB by the private party hosting the Photovoltaic system under the terms of a power purchase

agreement (see below).

Negative Elements: Wind turbines would be an obtrusive eyesore on the skyline of Eugene. Any

structural failures could result in significant risk of injury. Depending on design and analysis of wind

concentration, turbines could violate Eugene's limits to maximum structural height.

Alternative #3: Thoroughly Decentralized Solar

Design: Small photovoltaic arrays would be placed on the homes of interested Eugene homeowners.

Cost would be shared between homeowners and the City of Eugene, with homeowners bearing the

majority of the cost. Power would be sold back to EWEB by the homeowner hosting the Photovoltaic

system under the terms of a power purchase agreement (see below).

Negative Elements: There is little purpose in taking specific measures to facilitate the ownership of

photovoltaic arrays by private citizens beyond those measures that are already in place. Individuals

can buy solar systems, install them on their homes, and sell the power to EWEB. It would take

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considerable resources for the city of Eugene to assess numerous private residences for possible

Photovoltaic array placement.

Policies to be Adopted

The City of Eugene and the Eugene Water and Electric Board will offer a public-private partnership

opportunity to businesses or other private entities with large areas of flat, underutilized, impermeably

sealed land within the limits of the city of Eugene. The goal of the partnership will be to find a cost

sharing arrangement agreeable to all parties that results in the availability of monetary resources to

build a customized small urban solar farm (Photovoltaic array). The solar panels will be constructed

on pylons above the underutilized land (parking lots), leaving that land's original function unchanged.

Once the solar panels are in operation, the business or private entity and the city of Eugene will sell the

generated energy back to EWEB, and split the resultant revenue based on an understanding established

in the original cost sharing arrangement for the project.

Possible effective sites for project implementation;

The following sites meet the basic criteria for priority in this project. Use of any of these sites would be

subject to the interest of the companies owning the property.

Fred Meyer One Stop Shopping

3333 W. 11th ave

Eugene, OR 97401

Figure 3: Fred Meyer One Stop Shopping Store, West Eugene. Source: Google Maps

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Walmart Supercenter

4550 W. 11th ave

Eugene, OR 97402

Figure 4: Walmart Parking Lot. Source: Google Maps

Autzen Stadium

Eugene, Oregon 97401

97401

Figure 5: Autzen Stadium Parking Lot. Source: Google Maps

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Task List

Phase 1: Seek Out Partnerships

Following the example set by the Oregon Department of Transportation in their recent Solar Highway

Project, the City of Eugene and the Eugene Water and Electric Board will establish an Office of

Innovative Partnerships and Alternative Funding (ODOT, 2009)

Structure of Office of Innovative Partnerships and Alternative Funding (OIPAF): The OIPAF will be

comprised of co-directors (2), one drawn from employees of the City of Eugene, and one drawn from

employees of the Eugene Water and Electric Board. These will not be new job positions, but duties

added to the function of existing employees. A salary increase for these employees is recommended in

line with union restrictions and seniority. Assisting the co-directors will be 2-3 unpaid interns drawn

from the University of Oregon, Lane Community College, and the general community.

Powers of the Office of Innovative Partnerships and Alternative Funding (OIPAF): The OIPAF will

have a small budget appropriated from the budgets of EWEB and the City of Eugene. The budget will

not be used to fund project construction but to provide resources for planning with private sector

partners, for example to contract for engineering assessments of proposed project sites. This budget

will increase in size as funding partners are identified and as time passes. The OIPAF will not add

more than one partner per two months, and no more than four partners shall be involved in the project

process per year.

Starting budget: $20,000 ($10,000 from the City of Eugene, $10,000 from EWEB)

One partner identified: $30,000

Two partners identified: $40,000

Three partners identified: $45,000

Four partners identified: $50,000

The OIPAF shall have the power to negotiate on behalf of EWEB and the City of Eugene, and to have

their deceisions reviewed, approved, and funded by both the Eugene City Council and EWEB

commissioners.

Function of the Office of Innovative Partnerships and Alternative Funding (OIPAF): The OIPAF will

work to seek out businesses and other private entities interested in participating in a solar parking lot

project. The OIPAF will also seek out manufacturers for the needed solar panel materials.

Goals of Phase 1: Create an Office of Innovative Partnerships and Alternative Funding as a joint

agency between EWEB and the City of Eugene. Identify an interested private entity with a large area

of impermeably sealed (blacktopped), underutilized (single use; parking) land within the city limits of

Eugene. Determine that this partner is prepared to share some cost for the project. Identify a shortlist

of solar manufacturers that could economically provide solar panels for the project.

Phase 2: Build Cost-Sharing Model and Specific Technical Plan

The OIPAF and the identified private sector partner shall jointly issue and fund a contract for a

qualified private engineer or engineering firm to create an assessment of the solar generating capability

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of the proposed land, while preserving its function, based on a basic design (figure 6). The produced

assessment should be scalable to three levels of commitment on the part of the partners; the engineers

should produce an assessment of partial utilization, semi-complete utilization and maximum utilization,

each involving a different number and arrangement of solar panels.

Figure 6: Basic Design of the Project

The OIPAF and private sector partner shall negotiate the extent of and technical design of the project.

The OIPAF and private sector partner shall negotiate a cost-sharing model for the lifetime of the

project. The goal of negotiations will be to create a balance of the sharing of costs between the

construction and operation phases which maximizes the contribution of the private entity. What

percentage of the cost of construction is the private entity willing to shoulder? This should be reflected

in their power purchase agreement with EWEB. Current power purchase guidelines pay $0.076 per

kWh after the first 45,000kwh per month (EWEB, 2009). This amount should be flexible from $0.00

to $0.090, depending on the private entity's contribution to construction. In all cases, a single

reimbursement rate will be used rather than EWEBs graduated PPA, which pays a higher rate after

30,000kWh per month (winter) and 45,000kWh per month (summer). A dollar value shall be placed

during negotiations on the value to the business of private entity of having a green energy project

benefitting the people of Eugene on the property of the business of private entity. One of the goals of

of the project is exposure or visibility, and Eugene residents will identify the project with the business

or private entity that chooses to host it. The Eugene community is generally considered positively

inclined towards sustainability issues and green power. How much is the attractiveness their business

will earn with to the private entity?

During these negotiations, a solar manufacturer and photovoltaic product should be selected from the

OIPAF shortlist of solar manufacturers.

The outcome of negotiations should be a specific breakdown of cost sharing in percentages (for

example, cost of construction might be split EWEB 25%, COE 25% Private Partner 50%). A

breakdown must be produced for both construction costs and division of deliverables.

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Phase 3: Selection of Construction Firm

The OIPAF will solicit bids for the construction of the project from private construction firms.

Restrictions for contract-recipient firm:

*Must be based in Eugene-Springfield area

*Must use modern green building practices

*Must provide plan for constructing in such a way that the parking function of the land is not

significantly impacted even during construction. No more than 15% of the parking area may be

unusable at any time during construction.

The selected contract should be translated into a specific request for an allocation of funds from the

City of Eugene and EWEB, with an identified overall price tag for the project showing the

contributions from the private entity, EWEB, and the City of Eugene, and showing how the monetary

value of deliverables (energy revenue, or cost of energy supply in the case of EWEB) will be divided

between these same stakeholders.

Phase 4: Construction

The contractor shall construct the project under the terms of the contract. The OIPAF shall make

regular updates on progress to EWEB and the City of Eugene, and to the public through a

website/blog/social networking.

Phase 5: Operation

The project shall go into operation. Generated energy will be sold back to EWEB under the terms of

the agreement, and revenue will be split between the City of Eugene and the private partner.

All phases can go on concurrently with up to four separate private partners per year. The OIPAF shall

be available to consult private etities beyond these four in the building of non-partnership solar projects

or a similar nature in the Eugene-Springfield area.

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References

1. Eugene Planning Division, Development Services Department (Springfield), Lane County Lane

Management Division, Lane Council of Governments (2004). Eugene-Springfield Metropolitan Area

General Plan, 2004 Update. Retrieved 15 July 2009 from

http://docs.lcog.org/metro/default.htm#metdoc

2. Eugene Planning Division. Base Zoning Map of Eugene-Springfield. Retrieved 15 July 2009 from http://www.eugene-

or.gov/portal/server.pt?open=512&objID=228&PageID=1473&cached=true&mode=2&userID=2

3. Eugene Water and Electric Board. Electric Resource Portfolio. Retrieved 15 July 2009 from http://www.eweb.org/content.aspx/df5903b2-f728-4df8-979b-9693dc624aa0

4. Rosenberg et al (1997). Large-scale impacts of hydroelectric development. Environmental Reviews 5(1): 27–54

5. Bunn, S and Arthington, A (2002). Basic Principles and Ecological Consequences of Altered Flow Regimes for Aquatic Biodiversity. Environmental Management 30(4):492-507

6. Oregon Department of Transportation Office of Innovative Partnerships and Alternative Funding. The ODOT Solar Highway. Retrieved 10 July 2009 from

http://www.oregon.gov/ODOT/HWY/OIPP/inn_solarhighway.shtml#research

7. Eugene Water and Electric Board. Direct Generation (Power Purcahse Agreement). Retrieved 15 July 2009 from http://www.eweb.org/content.aspx/7812a00c-7c0d-40d0-af82-39488c60079e