HomeMy WebLinkAbout2.1_Materials Received_PA2010-113Correspondence
Item No. 2a
Solar Energy System Installations
Burns, Marlene PA2010 -113
From:
Nueno, Fern
Sent:
Thursday, February 17, 2011 1:01 PM
To:
Burns, Marlene
Cc:
Alford, Patrick; Mulvihill, Leonie
Subject:
FW: CALSEIA Comments re Newport Beach draft solar ordinance
Attachments:
CALSEIA Comments re City of Newport Beach solar ordinance.pdf
Fern Nueno, LEED AP
Assistant Planner
Planning Division
fnueno annewoortbeachca.aov
(949) 644 -3227
City of Newport Beach I Community Development Department 1 3300 Newport Blvd I Newport Beach, CA 92663
A responsive, knowledgeable team of professionals guiding community development in the public interest.
From: CALSEIA, Sue Kateley [mailto:calseia.admin @gmail.com]
Sent: Thursday, February 17, 2011 12:27 PM
To: Nueno, Fern
Subject: CALSEIA Comments re Newport Beach draft solar ordinance
Dear Ms. Nueno,
Attached please find comments from the California Solar Energy Industries Association regarding the draft solar
ordinance proposed for Newport Beach.
If you have any questions, please do not hesitate to contact me.
Best regards,
Sue Kateley, Executive Director
California Solar Energy Industries Association (CALSEIA)
P.O. Box 782
Rio Vista, CA 94571
916 - 747 -6987
Direct: 916- 616 -4632
info @calseia.org
C4 L*,
CALIFORNIA SOLAR ENERGY INDUSTRIES ASSOCIATION
916 - 747 -6987 info @calseia.org
P.O. Box 782, Rio Vista, CA 94571
February 17, 2011
Ms. Fern Nueno,
Assistant Planner
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA 92663
fn uenoCanewportbeachca.gov
Dear Ms. Nueno:
CALSEIA applauds the City of Newport Beach's efforts to encourage solar energy generation in its
community. We understand that its Solar Energy System Ordinance has been proposed due to an
unfortunate situation involving one solar photovoltaic installation that has precipitated a neighborhood
dispute. We regret this situation and hope the City will not impose a rule for all solar energy systems
based on this one exception to normal business practice. Solar energy systems have been installed in
your community for more than 30 years without incident and we hope the City will reconsider imposing
a general rule when other, less onerous solutions are available.
We are providing comments on the proposed ordinance and suggesting some modifications to improve
it. Our concerns address the following, four issues:
1. Cost of screening and other requirements
2. Requirement to treat panels with anti -glare substances
3. Statement regarding water run -off
4. Specifying preference for particular types of solar products
Comments
1. The ordinance overlooked a statutory limit on cost of solar energy systems restrictions. (This
comment applies to several findings in the ordinance. particularly Findings 9 and 10.) The staff
report does an excellent job discussing the Solar Rights Act and its applicability to solar permitting
requirements. One omission pertinent to this ordinance, however, is the following statutory limit on
the cost of restrictions imposed on solar energy systems. Specifically, Civil Code Section 714
provides:
"(b) This section does not apply to provisions that impose reasonable restrictions on solar
energy systems. However, it is the policy of the state to promote and encourage the use of solar
energy systems and to remove obstacles thereto. Accordingly, reasonable restrictions on a solar
energy system are those restrictions that do not significantly increase the cost of the system or
significantly decrease its efficiency or specified performance, or that allow for an alternative
system of comparable cost, efficiency, and energy conservation benefits."
"(d) For the purposes of this section: (1) (A) For solar domestic water heating systems or solar
swimming pool heating systems that comply with state and federal law, "significantly" means an
amount exceeding 20 percent of the cost of the system or decreasing the efficiency of the solar
energy system by an amount exceeding 20 percent, as originally specified and proposed.(B) For
photovoltaic systems that comply with state and federal law, "significantly" means an amount
not to exceed two thousand dollars ($2,000) over the system cost as originally specified and
proposed, or a decrease in system efficiency of an amount exceeding 20 percent as originally
specified and proposed. (2) "Solar energy system" has the same meaning as defined in
paragraphs (1) and (2) of subdivision (a) of Section 801.5"
As written, we believe it is possible that the City's screening and other requirements might fall within
this cost limit. CALSEIA recommends the ordinance be clarified to ensure that the cost of screening and
other requirements fall within these limits.
We are mystified, however, by this requirement to screen inverters. For the most part, inverters are
located near the residence's electric service panel and meter. For safety and emergency response, these
components are marked and need to be visible. The City should not require screening of inverters.
Instead, it should treat inverters the same as other electric service equipment, such as utility meters.
CALSEIA recommends eliminating screening requirements for inverters.
2. Requirement to treat panels with anti -glare substances or materials, Finding 10. CALSEIA is
concerned about the requirement that solar panels be treated with anti -glare substances or
materials. Modifications to this equipment may create safety hazards and void listings by safety
testing organizations like Underwriters' Laboratories. We are also concerned that such treatments
would void manufacturers' warranties.
We share the City's concern about situations in which glare could cause a problem for a neighbor.
For the most part, however, glare is not a problem, because most solar energy systems are installed
above line of sight. The requirement, therefore, is too broad to impose upon all installations. We
recommend the City adopt a more general rule that solar panels that are placed where they might
cause glare to be experienced by neighbors must be adjusted to prevent nuisance glare. This
modification would put the onus for assessing glare potential upon the system owner and obligate
them to make adjustments before or after the installation is completed, if nuisance glare occurs.
3. Adverse impacts of ground- mounted solar collectors (Finding 13). CALSEIA is concerned about the
first bullet point, which alleges potential water quality impacts from runoff. No supporting data is
provided to substantiate this finding. CALSEIA recommends removing this bullet point until and
unless data is provided which substantiates this claim. Finding 12 provides discretionary review of
ground- mounted installations, which we believe covers the concerns regarding need for review of
projects.
4. Specifying preference for particular products (Voluntary checklist). CALSEIA recommends removing
the following checklist item: "Solar photovoltaic shingles, tiles, laminate, glazing, and building
integrated solar thermal technologies are preferred for most projects." The selection of particular
solar products is based on a number of factors, including cost, performance, site structural
conditions, orientation requirements, etc. We recommend that this particular line item be removed.
Page 2 of 3
We appreciate the effort made by the City to draft this ordinance in a manner which would not
undermine a building owner's ability to reduce their energy demand and consumption and the state's
reliance on fossil fuels. We are very concerned that the requirements could induce contractors and
their customers to engage the City of Newport Beach in costly legal battles, and identify the City as
hostile to California's effort to encourage clean energy.
With the modification we have suggested above, the City of Newport Beach's Solar Energy System
Ordinance could become a model for other jurisdictions. We would appreciate the opportunity to work
with you on revisions.
Thank you in advance for your consideration.
If you have any questions, please do not hesitate to contact me.
Best regards,
Sue Kateley
Executive Director
Page 3 of 3
SHARP
solar electricity
February 23, 2010
N,
Correspon Ce
Item No. 2b
Solar En `- em Installations
PA2010 -113
Re: Sharp Solar Modules - Antireflective Glass
To Whom It May Concern:
Solar modules manufactured by Sharp Electronics Corporation are designed to absorb maximum
light with minimal reflection. The cover glass is tempered with a low iron content to maximize
spectral absorption. A roller coat finish further reduces reflection while providing a surface to
shed dirt and dust. The solar cells incorporate an anti - reflective coating and a textured surface
to enhance light absorption. The result is a solar module that provides approximately 97% light
transmission with minimal reflection. Solar modules of this type are used around many airport
facilities. For example, the Denver International Airport has a 2 MW ground mounted system
and FedEx's Oakland International Airport hub has a 904 kW roof top system, just to name a
few.
Denver International Airport; Denver, CO
FedEz Oakland International Airport; Oakland, CA
SHARP ELECTRONICS CORPORATION
5901 Bolsa Avenue, Huntington Beach, CA 92647
1- 800- SOLAR -06 • Email: Sharpsolar @SharpUSA.com
www.Sharp USA.comisolar
O ]WS Shop EIwVOnln Corprntlpn. Sharp Is • replHareE ValamaM1 of Snary COrppMwn. FA npMa mervM
Feel free to contact me if you have additional questioi
Best regards,
Adrian Kwong
Manager Reseller Channel Sales
Sharp Electronics Corporation
Solar Energy Solutions Group
Ph: 714-903-5081
Fx:714- 903 -4722
E -mail: adrian.kwong @sharpusa.com
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Materials Received
Item No. 2c
Solar Energy System Installations
PA2010 -113
y� Technical Guidance for Evaluating
Selected Solar Technologies
on Airports
Federal Aviation Administration
Office of Airports
Office of Airport Planning and Programming
Airport Planning and Environmental Division (APP -400)
800 Independence Avenue, SW
Washington, DC 20591
November 2010
0
4 #, gi n:
FAA Solar Guide
Prepared for:
Federal Aviation Administration
Associate Administrator for Airports
Airport Planning and Environmental Division
(APP -400)
800 Independence Avenue, SW
Washington, DC 20591
Ralph C. Thompson, Manager
Jake A. Plante, Project Manager
Prepared by:
Harris, Miller, Miller & Hanson Inc. (HMMH)
77 South Bedford Street
Burlington, MA 01803
Stephen B. Barrett, Director of Clean Energy
Philip M. DeVita, Director of Air Quality
Robert L. Miller, Senior Vice President
Under Contract to:
CSSI, Inc.
400 Virginia Avenue, SW
Washington, DC 20024
Deborah D. Wilson, Environmental Project
Manager
Cover Photograph:
Solar Photovoltaics (PV) System
Denver International Airport
FAA Solar Guide
Technical Report Documentation Page
1. Report No.
2. Government Accession No.
3, Recipient's Catalog No
FAA - ARP- TR -10 -1
Technical Guidance for Evaluating Selected Solar Technologies on
Airports
5. Report Date
October 2010
6. Performing Organization Code
DOT/FAA/ARP /APP -400
7. Authors)
8. Performing Organization Report No.
Plante, Dr. Jake A. *, Barrett, Stephen B. * *, DeVita, Philip M. * *, and
FAA - ARP- TR -10 -1
Miller, Robert L. **
9. Performing Organization Name and Address
10. Work Unit No. (TRAIS)
* U.S. Department of Transportation
Federal Aviation Administration
Airports Planning and Environmental Division, APP -400
800 Independence Avenue, SW
Washington, DC 20591
* *Harris Miller Miller & Hanson Inc.
77 South Bedford Street
Burlington, MA 01803
12. Sponsoring Agency Name and Address
13. Type of Report and Period Covered
Technical/Unlimited
U.S.. Department of Transportation
Federal Aviation Administration
Airports Planning and Environmental Division, APP -400
800 Independence Avenue, SW
Washington, DC 20591
14. Sponsoring Agency Code
APP -400
15, Supplementary Notes
16. Abstract
Airport interest in solar energy is growing rapidly as a way to reduce airport operating costs and to demonstrate a
commitment to sustainable development. In response, the Federal Aviation Administration (FAA) has prepared
Technical Guidance for Evaluating Selected Solar Technologies on Airports to meet the regulatory and
informational needs of the FAA Airports organization and airport sponsors.
For airports with favorable solar access and economics, this report provides a checklist of FAA procedures to
ensure that proposed photovoltaic or solar thermal hot water systems are safe and pose no risk to pilots, air traffic
controllers, or airport operations. Case studies of operating airport solar facilities are provided, including Denver
International, Fresno Yosemite International, and Albuquerque International Sunport.
17, Key Words
18, Distribution Statement
FAA, Airports, Solar Energy, Photovoltaics,
This document is available to the U.S. public through the
Airspace Review, Reflectivity
FAA/ARP web site.
19. Security Classif. (of this report)
20. Security Classif. (of this page)
21. No. of Pages
22. Price
Unclassified
Unclassified
I xx
I N/A
Form DOT F 1700.7 (8 -72) Reproduction of completed page authorized
IM
FAA Solar Guide
Acknowledgements
The FAA Airports Division of Planning and Environmental (APP -400) wishes to thank
representatives of the following organizations for their contributions to the development of the
solar guide.
Federal Aviation Administration
Office of Airport Safety and Standards (AAS)
Office of Airport Compliance and Field Operations (ACO)
Airports Regional Environmental Specialists
Los Angeles Airports District Office
San Francisco Airports District Office
Harrisburg Airports District Office
Office of Environment and Energy (AEE -400)
Air Traffic Organization, Airspace and Aeronautical Information Management, Obstruction
Evaluation Services (AJR -322) and Environmental Programs (AJR -34)
Air Traffic Organization, Technical Operations, Infrastructure Engineering Group (AJW -W 15)
Air Traffic Organization, NextGen and Operations Planning, Airport and Aircraft Safety Group
(AJP -63)
Aviation Safety, Flight Standards Service, NextGen Field Program Branch (AFS -408)
Aviation Safety, Westem - Pacific Region Flight Standards Div., NextGen Branch (AWP -220)
Federal Agencies
U.S. Department of Energy
Airport Associations and Consultants
Airports Council International (ACI)
Frasca and Associates
Leigh Fisher and Associates
Electric Utilities
New York Power Authority
Special Thanks
We also wish to extend special thanks to the following individuals for their support of the project
research:
• Satish Agrawal and Don Barbagallo at the FAA Technical Center in Atlantic City, NJ (AJP-
63) for their funding support through the National Cooperative Research Program and their
technical contributions.
• Cliff Ho of the U.S. Department of Energy Sandia National Lab in New Mexico for his
technical assistance on reflectivity analysis and how it can be applied to airport PV solar
projects.
• Airport representatives that hosted HMMH project site visits: Jim Hinde (Albuquerque),
Jack Gotcher (Bakersfield), Woods Allee (Denver), Kevin Meikle (Fresno), Anthony
Kekulewela (Oakland), and Greg McCarthy (San Francisco).
iv
FAA Solar Guide
Table of Contents
Preface..._..._...._.._..._...._...._..._..._.. ._..._......_.._..._..__..._.._ ..._._.._..._..�..._.._. �d
1 AIRPORTS AND SOLAR ENERGY. CHARTING A COURSE ................. 1
1.1 Purpose of the Solar Guide ........................................... ............................... 1
1.1.1 What is Driving Solar Energy Development? ............... ..............................2
1.1.2 How is Solar Energy Impacting Airports? ..................... ..............................2
i�51&MF0MA , 3
1.2.1 Types of Solar PV Technologies ................................ ..............................3
1.2.2 Energy Conversion Process and Efficiency ................ ..............................4
1.3 Other Solar Power Generating Systems ............................. ..............................5
1.3.1 Concentrated Solar ...................................................... ............................... 5
1.3.2 Solar Thermal Hot Water ............................................. ............................... 7
1.3.3 Transpired Solar Collectors ........................................... ..............................8
1.3.4 Compatibility of Solar Generating Systems with Airports ........................8
1.4 Photovoltaic Designs for Airports ....................................... ............................... 9
1.4.1 Roof - mountings .............................................................. ............................... 10
1.4.2 Ground Mountings .................................................. ............................... 11
1.4.3 Tracking ......................................................................... ............................... 12
1.4.4 Remote Systems ........................................................... ............................... 13
1.5 Solar PV Supply and Demand ........................................ .............................13
1.5.1 Supply— Solar Resource and Other Weather Factors ........................13
1.5.2 Electricity Demand ....................................................... .............................15
1.6 The Electrical Grid ................................................. ............................... 15
1.6.1 System Infrastructure ................................................... .............................15
1.6.2 Electricity Transactions ............................................. .............................16
1.6.3 Solar Grid -Tie System .................................................. .............................18
1.6.4 Distributed Generation and Its Benefits to the Grid ... .............................18
Case Study #1 — Deploying Different PV Designs: Denver International Airport —
Pena Boulevard and Fuel Farm Projects — Colorado .... .............................19
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FAA Solar Guide
2 DESIGN CONSIDERATIONS: PLANNING AND SITING SOLAR
FACILITIES ............................................................. ............................... 21
2.1 Solar PV Project Life Cycle ............................................. ............................... 21
2.1.1 Siting and Feasibility ................................................. ............................... 21
2.1.2 Design and Permitting ................................................ ............................... 21
2.1.3 Installation .............................................................................. .............................21
2.1.4 Operations and Maintenance ....................................... .............................22
2.1.5 Decommissioning /Re- commissioning ........................ .............................22
2.2.4 Private Developer .......................................................
............................... 24
2.2.5 Installer ...................................................................................
.............................24
2.2.6 Financier ................................................................................
.............................24
2.2.7 Other ..........................................................................
.............................24
2.3 Airport Land Use and Safety Planning .............................. .............................24
2.3.1 Lands and Buildings ..................................................... .............................25
2.3.2 Airport Design Standards ............................................. .............................27
2.3.3 Consistency with Aviation and Airport Activities ...... ............................... 28
2.3.4 Consistency with the Master Plan and Airport Layout Plan .................... 29
2.3.5 Airport Layout Plan Approval ..................................... ............................... 30
2.3.6 Land Release Approval .............................................. ............................... 30
2.3.7 Environmental Screening ........................................... ............................... 31
Case Study #2 — A Unique Siting Example: Fresno Yosemite International Airport
(FYI) — California ........................................................... ............................... 32
3 SAFETY AND REGULATORY REQUIREMENTS FOR SOLAR
PROJECTS: MEETING AIRPSACE AND ENVIRONMENTAL
STANDARDS............................................................................... ............................... 33
3.1 Airspace Review ............................................................. .............................33
3.1.1 Airspace Penetration ......................................................... .............................35
Vi
FAA Solar Guide
3.1.2 Reflectivity .............................................................................. .............................36
3.1.3 Communication Systems Interference ....................... .............................41
3.2 Environmental Review .................................................... .............................42
3.2.1 NEPA ....................................................................... ............................... 42
3.2.2 Examples of Potential Environmental Issues ......... ............................... 43
3.3 Off - Airport ........................................................................ ............................... 45
Case Study #3 — Evaluating Airspace Issues: Metropolitan Oakland
International Airport — California ..................................... ............................... 46
4 AIRPORT SOLAR ECONOMICS: UNDERSTANDING THE
FINANCIAL INCENTIVES THAT MAKE SOLAR COST - EFFECTIVE......... 47
4.1 Cost of Electricity ........................................................... .............................47
4.1.1 Conventional Electricity ................................................ .............................47
4.1.2 Solar Electricity .................................................................. .............................49
4.1.3 The Power Purchase Agreement ............................. ............................... 50
4.2 Financial Incentive Programs to Lower the Cost of Solar .............................. 51
4.2.1 Renewable Portfolio Standards ................................. ............................... 52
4.2.2 Renewable Energy Credits ........................................ ............................... 53
4.2.3 Tax Credits ............................................................................. .............................53
4.2.4 Government Grants and Rebates ............................ ............................... 54
4.2.5 Feed -In Tariff ..................................................................... .............................55
4.2.6 Bonds ....................................................................... ............................... 56
4.2.7 Net Metering .......................................................................... .............................57
4.3 Ownership Models .......................................................... .............................58
4.3.1 Private Ownership — Airport as Host ......................... ............................... 58
4.3.2 Public Ownership — Airport as Owner ....................... ............................... 60
Case Study #4 — Partnering with a Private Developer: Meadows Field —
Bakersfield. California ................................................... ............................... 63
5 THE FEDERAL ROLE IN AIRPORT SOLAR DEVELOPMENT ............. 65
5.1 Executive Orders for Energy Management and Sustainability ...................... 65
5.2 FAA Policy and Planning ................................................. ............................... 66
5.2.1 Possible Strategies for Solar Development ............... ............................... 67
Vii
FAA Solar Guide
5.2.2 FAA Airport Engineering Guidance ............................ ............................... 67
5.2.3 Airport Sustainability Planning .................................... ............................... 68
5.3 FAA Airport Funding ........................................................ ............................... 68
5.3.1 AIP and PFC Programs .............................................. ............................... 68
5.3.2 VALE Program ...................................................................... .............................69
5.4 Recommendations ............................................................. ............................. 70
Case Study #5 — Building on Local Initiatives: Albuquerque International Sunport —
NewMexico .................................................................... ............................... 71
Appendices
Appendix A. FAA Contact Information ..................................................... ............................A -1
Appendix B. Existing Airport Solar Projects and Contacts ............... ............................B -1
Appendix C. Private Developer Ground Lease Example (Denver) ............................. C -1
Appendix D. Power Purchase Agreement Example ( Denver) ...... ............................... D -1
List of Tables
Table 1: Examples of FAA Regulatory Reviews for Existing Airport Solar Projects...... 43
Table 2: Highest Electricity Prices in April 2010. . ....... - ...... ....... ....... ....... ....... ............. 49
Table 3: Top Ten States in Solar Installations for 2009 .................... ............................... 52
Table 4: Examples of Ownership Structure for Existing Airport Solar Projects ................ 61
Table 5: Feasibility Checklist for Airport Sponsors ........................ ............................... 64
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FAA Solar Guide
List of Figures
Figure 1:
Schematic Diagram of a Typical Grid - Connected Solar PV System .................
3
Figure 2: Typical Parabolic Trough Collector ....................................... ..............................6
Figure 3: Typical Power Tower Collector ............................................. ...............................
6
Figure 4: Typical Solar Hot Water Collector ........................................ ...............................
7
Figure 5: Typical Solar Wall Collector ................................................. ...............................
8
Figure 6:
Example of a Roof - Mounted Solar PV System .................. ...............................
10
Figure 7:
Example of a Ground - Mounted Solar PV Installation .... ...............................
11
Figure 8:
Example of a Tracking Solar PV Installation ................ ...............................
12
Figure 9:
Photovoltaic Solar Resource ................................................ .............................14
Figure 10:
Schematic of the U.S. Electrical Grid System .................. .............................16
Figure 11:
Schematic Flow of Electricity Transactions Over the Grid ............................17
Figure 12:
FAA Review of Solar Projects .......................................... ...............................
26
Figure 13:
Restricted Areas Near a Runway End ............................... ...............................
28
Figure 14:
Physical Penetration of Airspace ....................................... ...............................
34
Figure 15:
Imaginary Surfaces that Define Navigable Airspace ........ ...............................
36
Figure 16:
Reflectivity Produced by Different Surfaces ..................... ...............................
38
Figure 17:
Different Types of Reflection ........................................ ...............................
39
Figure 18:
Simple Example of a Geometric Analysis .................... ...............................
40
Figure 19:
Average On -Peak Spot Electric Prices 2009 from Regional Transmission
Organizations........................................................................................................ .............................48
Figure 20:
Renewable Portfolio Standards in the U. S ....................... ...............................
53
Figure 21:
Solar Trees on Parking Garage at Boston's Logan Airport .............................
55
Figure 22:
Solar on New Rental Car Parking Facility at Mineta San Jose Airport ...........
57
Figure 23:
Private or Third -Party Owned Business Model ................ ...............................
59
Figure 24:
Airport Owned Business Model ........................................ ...............................
60
Figure 25:
Rooftop Solar Project on San Francisco's Terminal 3 ..... ...............................
62
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FAA Solar Guide
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FAA Solar Guide
Preface
Over 15 airports around the country are operating solar facilities and airport interest in solar energy is
growing rapidly. In response, the Federal Aviation Administration (FAA) has prepared this report,
Technical Guidance for Evaluating Selected Solar Technologies on Airports, to meet the regulatory and
information needs of FAA personnel and airport sponsors in evaluating airport solar projects.
The guidance is intended to provide a readily usable reference for FAA technical staff who review
proposed airport solar projects and for airport sponsors that may be considering a solar installation. It
addresses a wide range of topics including solar technology, electric grid infrastructure, FAA safety
regulations, financing alternatives, and incentives.
Airport sponsors are interested in solar energy for many reasons. Solar technology has matured and is
now a reliable way to reduce airport operating costs. Environmentally, solar energy shows a commitment
to environmental stewardship, especially when the panels are visible to the traveling public. Among the
environmental benefits are cleaner air and fewer greenhouse gases that contribute to climate change.
Solar use also facilitates small business development and U.S. energy independence.
While offering benefits, solar energy introduces some new and unforeseen issues, like possible
reflectivity and communication systems interference. The guidance discusses these issues and offers new
information that can facilitate FAA project reviews, including a flow chart of FAA procedures to ensure
that proposed systems are safe and pose no risks to pilots, air traffic controllers, or airport operations.
The guidance includes case studies of operating solar projects at Denver International, Fresno Yosemite
International, Metropolitan Oakland International, Meadows Field (Bakersfield), and Albuquerque
International Sunport. Each case study highlights a particular area of interest such as the selected
technology, siting considerations, financing, and regulatory requirements.
The guidance also includes a discussion of solar financing. Most existing airport solar projects involve an
airport partnership with private investors. These arrangements take advantage of Federal and state tax
credits and state- mandated electric utility purchases of renewable energy. Sponsors benefit from these
arrangements through lower airport electric utility bills, lease revenues, and the delegation of maintenance
costs. Federal resources for airport solar development are discussed also.
A
FAA Solar Guide
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xii
FAA Solar Guide Chapter 1. Airports and Solar Energy
1 AIRPORTS AND SOLAR ENERGY: CHARTING A COURSE
Though solar energy has been evolving since the early 1990's as a mainstream form of renewable energy
generation, the expansion in the industry over the past 10 years and corresponding decrease in prices has
only recently made it a practical consideration for airports. Solar energy presents itself as an opportunity
for FAA and airports to produce on -site electricity and to reduce long -term electricity use and energy
costs. While solar energy has many benefits, it does introduce some new and unforeseen issues, like
possible glare (also referred to as reflectivity) and communication systems interference, which have
complicated FAA review and approval of this technology. This guide discusses such issues and how
FAA reviews for solar projects can be streamlined and standardized to a greater extent.
Given the large amount of new information being created by the solar industry, a brief overview of solar
facilities is an appropriate starting point for this report, Technical Guidance for Evaluating Selected Solar
Technologies on Airports, hereafter referred to as the "Solar Guide ".
Chapter 1 provides an introduction to solar electricity and how it is delivered to customers. It includes a
description of solar photovoltaics (PV), which is one of the more practical applications for airports, other
types of solar energy systems, how systems connect and operate with the electric grid, and the specific
electricity supply and demand issues associated with solar projects at airport.
Chapter 2 reviews airport site planning issues including the life cycle of a typical solar PV project,
project participants, and airport planning considerations for locating solar facilities at airports (e.g.,
Airport Layout Plan consistency).
Chapter 3 examines the regulatory issues that FAA must consider, including Title 14 of the Code of
Regulations (CFR) Part 77 (Airspace Review) and obligations under the National Environmental Policy
Act (NEPA).
Chapter 4 describes the financial landscape for solar projects including the government incentives
available to fund projects and how the different ownership models (e.g., public vs. private) can maximize
project cost- effectiveness.
Chapter 5 reviews the Federal government's role in solar development and includes recommendations
for future research and procedural efficiency.
Examples from existing solar projects operating at airports are presented throughout the Solar Guide to
illustrate the technical, financial, and regulatory issues of solar energy at airports in a practical manner.
1.1 Purpose of the Solar Guide
Solar is a renewable energy source that contributes to national goals of sustainability, energy
independence, and air quality improvement. It is particularly well- suited to airports because of the
available space at airports, unobstructed terrain, and energy demand. A confluence of technological
advances, public policy, and market penetration has produced a boom in the solar industry which is
intersecting with aviation interests. In a growing number of locations, solar can provide a cost - effective
and stable long -term energy supply for airports. This Solar Guide discusses the opportunities and trade-
offs of solar energy and provides the FAA with clear and consistent procedures for reviewing solar
FAA Solar Guide Chapter 1. Airports and Solar Energy
projects. It also provides the airport sponsors (referred to henceforth as "sponsors "') and the aviation
community with a reference for technical, financial, and regulatory issues associated with solar energy.
1.1.1 What is Driving Solar Energy Development?
Governments have a strong interest in furthering the research and development of renewable energy
technologies, including solar energy. Renewable energy sources, by definition, utilize natural power
produced by atmospheric forces of the earth: sun, wind, river current, tidal current, and waves. These
energy sources require no fuel, provide continuous long -term production, and do not create emissions.
Fossil fuels (oil, gas, coal), in comparison, are finite and require combustion to release stored energy,
which produces gas emissions as a byproduct. Beyond initial developments for the military and space
programs, advances in commercial solar energy technology have been catalyzed by periodic disruption of
fossil fuel supplies and the escalation in energy prices starting in the early 1970's. Significant
investments by government and private capital have increased exponentially since then through a
confluence of forces including awareness of climate change and concerns about national security and
energy independence. In addition, the U.S. has benefitted from investments by European nations over the
past 20 years, particularly in the areas of wind and solar, which have broadened the technology and
commercialization, resulting in higher system efficiencies and lower prices.
The types of public policy enacted by government include changes in laws, regulations, tax policies, and
agency programs. For example, the U.S. Congress approves Federal tax credits and appropriates funds
for renewable energy research and development programs administered by the Department of Energy
(DOE) and its National Laboratories and Technology Centers. Federal agencies establish policies for
leasing Federal lands for private renewable energy development. States enact laws that require electric
utilities to provide a minimum amount of production through renewable energy sources. In addition,
States offer tax credits to lure renewable energy manufacturing facilities to set up business in their State.
These credits help private renewable energy developers to either offset the initial high capital costs of
equipment or to reduce the cost of renewable electricity as it is produced. The financial implications of
government stimuli, in terms of legislative reform and in funding appropriations and tax credits, bear
significantly on the economic feasibility of solar technologies at airports and are explored in detail in
Chapter 4.
1.1.2 How is Solar Energy Impacting Airports?
Growth of the solar energy industry has led developers to approach airports with a business prospect of
locating solar facilities on airport due to the availability of cleared open space and high energy and
electricity use. More indirectly, private developers have proposed large -scale solar developments off
airport in areas utilized by aviation either near airports or along common flight paths. These interactions
have caused the aviation community to question in a broad sense whether solar energy generation is
compatible with aviation due specifically to issues such as glare, radar interference, and physical
penetration of airspace. The FAA also has had to consider whether airport solar projects it approves are
consistent with an airport sponsor's Federal obligations regarding financial self - sustainability and
retention of airport revenue, as well as national environmental policy.
Before these specific issues can be addressed, however, it is important to discuss the basics of solar
technology and electric generation.
I Airport "sponsors" are planning agencies, public agencies, or private airport owners /operators that have the legal
and financial ability to carry out the requirements of the Airport Improvement Program (AIP). The term is also used
in this document to refer to the Passenger Facility Charge (PFC) program, which is restricted to "public agencies."
FAA Solar Guide Chapter 1. Airports and Solar Energy
1.2 Solar PV Basics
A solar PV system is made up of multiple components that collect the sun's radiated energy, convert it to
electricity and transmit the electricity in a usable form. A schematic diagram of such a system is shown
in Figure 1 below.
The main component is the solar panel, which is comprised of a group of individual solar cells that
convert sunlight energy to electricity. The panels are held in place by a frame which is either fastened to
an existing structure or is placed atop a stand that is mounted on the ground. Panels are typically
comprised of 40 individual solar cells. Several panels connected together in series are identified as a
"string" and often operate as a single generating unit, meaning if one panel becomes inoperable, it shuts
down the entire string. Multiple strings assembled together into one solar facility are referred to as an
"array."
The electricity produced by individual panels is direct current (DC) which is brought together in a
combiner box and fed as a single DC flow to an inverter. The inverter converts the electricity that is
produced by the PV cells from DC to alternating current (AC), a form that can be tapped by users of the
electrical grid (grid - connected systems are also referred to as a grid -tie System).2 Disconnects are located
in both the DC and AC lines to allow the utility company to interrupt electrical current during repair and
maintenance .3 A breaker panel is necessary for protecting the system from short circuits and voltage
surges. A utility meter accounts for the amount of electricity transfer between on -site service and the
utility grid.
Figure 1: Schematic Diagram of a Typical Grid - Connected Solar PV System
DC Current AC Current
Panels Combiner DC Inverter AC Main Utility utirity utility
Box Disconnect Disconnect Breaker Panel Meter Grid
D 4-+Tt
8
Household
Usage
Source: hnp: //w affordable- solu.com/grid.tie.htm
1.2.1 Types of Solar PV Technologies
The primary types of PV technologies applicable to airports are those associated with crystalline silicon
panels. Solar cells assembled in panels are made of silicon and are the most efficient technology for
z Stand alone systems that are not grid - connected utilize a charge regulator or a controller. They also require a
battery to store electricity and make it useful during times when the sun is not shining.
3 The fire department should be consulted on disconnects to allow access to the system in the event of an emergency.
FAA Solar Guide Chapter 1. Airports and Solar Energy
converting light energy to electricity. Monocrystalline panels are made of large silicon crystals which are
less common and therefore more expensive but also operate more efficiently. Polycrystalline panels are
made of many small silicon crystals and are the most common type of solar panel. Crystalline silicon is
cut into disks, polished and connected together with metal conductors, and assembled on a panel. The
panels are covered by a thin layer of protective glass and the panel is attached to a substrate of thermally
conductive cement which traps waste heat produced by the panel and prevents it from overheating.
Other types of PV technologies include thin film and multi - junction versions. Thin -film solar is made
from amorphous silicon or other materials such as cadmium telluride. While less efficient than traditional
solar cells, thin -film can be deployed less expensively on flat building surfaces such as building rooftops
and facades to generate electricity. Multi junction systems consist of multiple thin -film layers that
increase efficiency. Newer solar technologies are being developed using inks and dyes produced through
traditional printing techniques to decrease costs and expand deployment opportunities°.
The U.S. Department of Energy's National Center for Photovoltaics is the central location for
research and development utilizing the expertise of the National Renewable Energy
Laboratory (NREL) and Sandia National Laboratories.
1.2.2 Energy Conversion Process and Efficiency
Photovoltaic devices convert light energy to electricity. When semiconducting materials are exposed to
light, they absorb some of the sun's energy in the form of photons and emit electrons in the form of
electricity. However, the amount of electricity that can be generated is only a percentage of the total
amount of the sun's energy available. Physical limitations of converting photons to electricity have been
established in the laboratory -- some photons reflect away from the panels and some pass through the
panels, so that the electricity conversion efficiency for today's photovoltaic panels is between 6 and 20%
of the total energy available. In comparison, the burning of fossil fuels is about 28% efficient. Also, as
operating panels age and degrade, their efficiency goes down (on average about 0.5% each year).
Solar electricity performance is affected on -site by geographic, meteorological, and technical conditions.
Electricity production is dependent on the amount of solar irradiance (i.e., sunshine intensity) at any one
location, cloud cover, and other environmental factors such as smog and dust. The amount of energy
available also changes daily and seasonally depending on the position of the sun in the sky. For any
location, the maximum solar irradiance will occur at 12:00 noon on the summer solstice. Solar irradiance
is typically measured in "peak sun hours" which defines the number of hours (on average) where a
location can produce 1 kWh/m2 (kilowatt -hour per meter squared). Information on solar irradiance for
specific locations in the U.S. can be found on the NREL website.5
Panel capacity is the amount of electricity that can be generated by the panel at maximum output. The
capacity is determined by standardized testing in laboratory conditions. Solar panels vary in rated
production capacity. Denver International Airport is utilizing 216 -watt panels at its Pena Boulevard
installation; Albuquerque International Sunport is utilizing 305 -watt panels. The panel capacity proposed
for any new system will be determined based on many factors including available space and project
budget.
4 National Renewable Energy Research Laboratory. 2010. Solar Research. httu: / /www.nrel.gov /solar/
5 hnp : / /www.nrel.gov /gis /solar.html
FAA Solar Guide Chapter 1. Airports and Solar Energy
Power production from a solar panel is calculated based on (1) the panel's rated power, (2) the solar
energy availability (monthly average), and (3) efficiency loss due to elevated operating temperatures.
For example, a 315 -watt panel in Phoenix Arizona in June with a 3% average efficiency loss for panel
heating would be determined as follows:
[315 watts] x [7.13 hours] x [97 %] = 2.179 kWh
Regardless of panel rating, electricity production of solar panels increases as the sun rises and the panels
warm up. While one might think that maximum electricity production would occur on the summer
solstice (June 21) when the sun is highest in the sky (-12 noon), this is often not the case. Production
levels off at the ideal design temperature of 25° C (77° F) then begins to decrease as the ambient air
temperature increases. Power production decreases by 5% for every 10° C (18° F) increase over the
design temperature 6.
1.3 Other Solar Power Generating Systems
Though often less suitable to airports, other types of solar power generating systems exist and are
described below.
1.3.1 Concentrated Solar
Concentrated Solar Power (CSP) systems use large reflective surfaces in massive arrays to focus the sun's
energy on a fixed point to produce intense heat, which is then converted to electricity. The most common
means for producing electricity in these systems is to heat water and produce steam, which drives a
turbine, usually for the purpose of supplying commercial power to the grid. The two most common CSP
designs are parabolic troughs and power towers shown in Figures 2 and 3 below.
Parabolic troughs continually track the sun and concentrate the sun's heat onto receiver tubes filled with a
heat transfer fluid. The fluid is heated up to 750'F then pumped to heat exchangers that transfer the heat
to boil water and run a conventional steam turbine producing electricity.
6 Zauscher, M. 2006. Solar Photovoltaics Panels from a Hear Transfer Perspective. Department of Mechanical and
Aerospace Engineering. University of California, San Diego.
httv:H courses. ucsd. edu /rherz /mae22la /reports / Zauscher 221A FO6.1)df
FAA Solar Guide Chapter 1. Airports and Solar Energy
Figure 2: Typical Parabolic Trough Collector
Whereas parabolic troughs focus sunlight to receivers located on each individual unit, power towers focus
all the facility's sunlight to a single receiver. The power plant is comprised of individual heliostats
(mirrors) arranged in a circular array that track with the sun. Each heliostat reflects sunlight onto the
central receiver at the top of a tower. Just like the parabolic trough, a heating fluid transfers heat to create
steam to drive a turbine and produce electricity.
Figure 3: Typical Power Tower Collector
FAA Solar Guide
Chapter 1. Airports and Solar Energy
One of the benefits of either form of CSP over PV is that the heated fluids can be used to store energy and
delivery electricity even when the sun is not shining.
Concentrated Solar Powerprojects require enhanced coordination with the FAA due to unique
issues with reflectivity, thermal plumes, radar interference, and airspace penetration.
1.3.2 Solar Thermal Hot Water
Solar thermal refers to conventional systems used to produce hot water by exposing water to the sun's
energy either directly or by heating a fluid in a closed loop that heats the water, as illustrated in Figure 4.
The concentrated solar power systems described above are an advanced form of solar thermal employed
to produce electricity in large amounts to feed the electrical grid. Conventional solar thermal systems are
deployed as panels that contain coils filled with the heating fluid or water. These systems can be used to
serve a single household or a larger residential, commercial, or airport application. Their greatest benefit
to areas already served by the electric grid is to minimize the electricity demand on domestic or
commercial water heaters to keep water constantly hot.
Figure 4: Typical Solar Hot Water Collector
FAA Solar Guide
1.3.3 Transpired Solar Collectors
Chapter 1. Airports and Solar Energy
Transpired solar collectors, also referred to as "solar walls," are placed on the sides of buildings to pre-
heat ventilation air inside the building, an illustration of which is shown in Figure 5 The design is
relatively simple: employ a heat - absorbing metal panel typically on an outer south - facing wall of a
building. Air located between the panel and the wall is heated and drawn into the building's ventilation
system by circulating fans. Through this process, fresh air is constantly drawn into the solar heated space
and then into the building making the system particularly good for building activities that require constant
ventilation. The systems are especially effective in sunny climates with long heating seasons.
Figure 5: Typical Solar Wall Collector
Distribution ducting
Fan unit Y I 1
Hot air
W
1.3.4 Compatibility of Solar Generating Systems with Airports
Given the constraints of some solar energy systems, solar PV tends to be the technology that provides the
best opportunity for airports today. Based on available information, solar PV for an airport application
has the best cost - benefit ratio of the solar power alternatives. In comparison with CSP systems, solar PV
is more compatible with airport land use because it:
1. Is most cost - effective when serving a smaller on -site electricity demand as opposed to large -scale
generation for the electricity grid;
2. Has a low profile and modular design, which is compatible with low- demand airport property such
as rooftops and airfields; and
3. Is designed to absorb sunlight (rather than reflect it), minimizing potential impacts of glare.
FAA Solar Guide Chapter 1. Airports and Solar Energy
4. Doesn't attract wildlife, which is a critical aviation hazard.
In addition, many airports are currently employing solar PV and reporting reliable and safe performance.
In contrast, CSP is typically not compatible with airports. One reason is because CSP requires more
space than is usually available on airport property. More importantly, CSP projects in general have raised
concerns about hazards to safe air navigation from:
I. Potential glare and glint caused by parabolic troughs and heliostats that might cause temporary loss
of vision to pilots on arrival or departure, or to Air Traffic Control personnel in the control tower.
2. Electromagnetic interference with on- and off - airport radar systems that may pick up a false signal
from the metal components of the mirrors with impacts that can vary based on solar tracking
activity.
3. Physical penetrations of navigable airspace from power towers that extend into Part 77 imaginary
surfaces, terminal instrument procedures (TERPS) surfaces, or the path of radio emitting
navigational aids.
4. Thermal plumes emitted by the power tower that produce unexpected upward moving air columns
into navigable air space.
Conventional solar thermal hot water units can be physically compatible with airport land uses and
activities because their design is similar to that of solar PV panels. However, solar thermal has been best
demonstrated as a supplementary source for domestic uses based on frequency of hot water use and level
of demand. Airports may want to explore the opportunity of conventional solar thermal hot water at the
same time they are looking at solar PV depending on specific hot water use conditions at the airport.
Transpired solar collectors are also potentially compatible with certain airport buildings such as hangars
or garages. These solar collectors, like conventional solar thermal hot water units, have an advantage
over PV and CSP installations in terms of local air quality because they directly offset the airport's
consumption of conventional fuels and emissions.
All solar projects are subject to FAA review for compatibility with a safe and efficient air navigation
system. The FAA will review solar PV project to ensure that potential issues such as approach slope
penetration, reflectivity, and communication system interference are avoided. See Section 3.1 for more
information on the review process and standards.
1.4 Photovoltaic Designs for Airports
Solar PV is a technology that can readily be designed into an existing landscape without major
modifications due to its relatively simple, modular construction. For the airport environment, this means
that PV can be placed in locations that are not used for aviation activities and therefore have little value to
the airport or for alternative developments. However, because solar panels are made of expensive
materials that keep the cost of solar electricity comparatively high, it is important to minimize the amount
of engineering and construction necessary to secure the panels to keep solar electricity cost competitive.
FAA Solar Guide Chapter 1. Airports and Solar Energy
1.4.1 Roof - mountings
Roofs are an optimal location for solar panels because they commonly receive unobstructed sun exposure,
as seen in Figure 6. Roofs may also provide a ready -made support structure for a solar installation,
obviating the need for costly engineering and materials. Mountings will depend on the type, design, and
structural characteristics of the roof and wind - loading requirements of the panels. South facing angled
roofs require less support structure than flat roofs or those facing a direction other than south. Special
mountings will need to be considered in areas prone to hurricanes and other seasonal weather events.
Local building codes provide wind - loading design requirements. Airport buildings often have both flat
roofs (e.g., terminal buildings) requiring a generic support structure and angled roofs (e.g., hangers)
which may need little in the way of support. An analysis of the existing roof loading capacity must be
conducted to determine if structural reinforcement is required which will impact project cost. Project size
is also a cost consideration as roof - mounted systems are typically more cost - effective for "smaller"
projects whereas ground- mounted projects provide better pricing for larger projects.
Figure 6: Example of a Roof - Mounted Solar PV System
10
FAA Solar Guide Chapter 1. Airports and Solar Energy
1.4.2 Ground Mountings
Installation of solar panels at ground level, an example of which is seen in Figure 7, requires flat or gently
rolling terrain with unobstructed views to the south. Ground - mounted systems also require geotechnical
analysis to confirm the long -term stability of the soils that support them, particularly when deploying
tracking systems whose efficiency will decrease if the soils destabilize the panel alignment. To avoid
destabilization, ground -based panel mountings typically consist of poles and steel beams for extra
support. This increases panel- for -panel costs of ground -based systems, though economies of scale can
make larger systems more economical when space is not a limiting financial consideration. In addition,
while engineering and materials can increase costs, the technical difficulty of the engineering and
construction is typically low.
Figure 7: Example of a Ground - Mounted Solar PV Installation
11
FAA Solar Guide
1.4.3 Tracking
Chapter 1. Airports and Solar Energy
Tracking systems employ hydraulic or motor driven mechanisms to move the panels such that they are
continuously perpendicular to the sun, maximizing their electric generation potential. An example of a
tracking system is seen in Figure 8. Panels can move in two directions to optimize contact with the sun.
One direction adjusts vertically to the sun's seasonal position in the sky whereby the panel angle relative
to the ground increases or decreases. The second direction is a horizontal movement tracking the sun's
daily path from sunrise to sunset. If the system employs one of these tracking systems it is referred to as
a "single- axis" system. If it employs both, it utilizes "dual- axis" tracking. Tracking systems introduce a
considerable amount of additional technology and complexity to solar systems, which increase capital and
maintenance costs. The efficacy of a tracking system depends on a cost - benefit comparison of the
increase in electricity production versus the increase in expense. Where maintenance issues are greater,
for example in snow or dusty conditions, financial returns decrease.
Figure 8: Example of a Tracking Solar PV Installation
12
FAA Solar Guide Chapter 1. Airports and Solar Energy
1.4.4 Remote Systems
Solar has become a preferred method to electrify many remote systems. The most visible examples are
highway signs and monitoring devices seen along roadways. The advantage of solar for these
applications is that they do not require connection to the grid. However, even with a back -up battery,
there is the potential risk that power can become interrupted.
Airports, too, have recognized the advantages of remote lighting systems. In January 2008, the FAA
issued Engineering Brief No. 76, "Using Solar Power for Airport Obstruction Lighting ',7 to provide
guidance on this application. The Brief provides specific design guidance on using solar for remote
power applications, and conditions that can make them more cost - effective than connecting to the grid.
The guidance in the Brief is applicable to obstruction lights located on- and off - airport property. FAA
Advisory Circular (AC) 150 - 5345 -50B, Specifications for Portable Runway and Taxiway Lights,
provides additional guidelines on portable airfield lighting for temporary use and solar applications which
may include solar charging of batteries. Airports with solar - powered LED obstruction lights include
Chicago O'Hare, Los Angeles International, and False River (near Baton Rouge) Louisiana.
1.5 Solar PV Supply and Demand
The feasibility of a solar PV system depends first and foremost on good solar exposure and efficient
utilization. Without those features, a solar project is unlikely to be cost- effective even with available tax
credits and other financial incentives. The basic factors that affect solar PV electricity supply and
demand are (1) the strength of the solar resource, (2) other weather factors influencing project design, and
(3) airport- specific practical considerations like amount of electricity used and available space for a
project.
1.5.1 Supply — Solar Resource and Other Weather Factors
For a site that is essentially free of shade, the amount of solar energy available for capture is dependent
upon climate and geography. The southwestern U.S. is the sunniest and driest part of the country, while
the northwest and east are cloudier and more humid. The southern U.S. also receives more solar energy
per unit area than does the north by virtue of its closer proximity to the equator.
Figure 9 illustrates the comparative solar resource across the U.S. The warm colors (reds, oranges, and
yellow) depict the areas with the strongest solar resources; the cooler colors (greens and blues) are less
desirable areas. Arizona and New Mexico comprise the majority of this optimum area. Adjacent lands
extending west to the Pacific (and Hawaii), north into Oregon and Wyoming, and east into Nebraska,
Kansas, and west Texas provide the next best tier of solar resource areas, followed by the Gulf States and
southeastern U.S. The upper Midwest, New England, and the Pacific Northwest are less optimal, while
Alaska represents the poorest resource, largely the result of its high latitude and short days.
'FAA. 2008. Using Solar Power for Airport Obstruction Lighting.
http: / /www.faa.gov/ airports /engineerinwengineering briefs/
13
FAA Solar Guide Chapter 1. Airports and Solar Energy
Figure 9: Photovoltaic Solar Resource
Photovoltaic Solar Resource
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Other weather factors affecting the solar resource include snow, hail, lightning, hurricanes, and dust. All
of these factors should be considered during project design and may have a modest impact on project
costs, but none is likely to represent such a severe limitation that it would prohibit proceeding with a solar
project.
Solar production benefits from the rarified atmosphere that exists at higher elevations; however a
corresponding increase in snow potential may inhibit efficiency if panels remain buried for any
substantive period of time. In such areas, some production efficiency loss should be factored into the
analysis, though elevating the panels and increasing their orientation with the ground (i.e., tilting them
appropriately) will mitigate the loss by allowing the panels to shed the snow more rapidly. In areas where
large hail storms are common, damage to the panels from falling hailstones is possible, but would be a
very site - specific consideration. However, all solar projects are designed with lightning protection to
make sure that the system is not damaged by lightning strikes. Should a site have extenuating factors,
additional protection beyond convention may be warranted. Solar projects proposed in areas of the U.S.
subject to hurricane force winds must meet enhanced building code standards to withstand hurricane -
force wind loads.
14
FAA Solar Guide Chapter 1. Airports and Solar Ener
Dust, like snow, will be a design and operations and maintenance issue. Dust that collects on the panel
surface will negatively impact the panel's electricity production efficiency. Because many projects are
located in dry climates with little rain, owners will often conduct a panel rinse twice per year. Fixed
(non - tracking) panels will also be designed with some tilt (rather than just flat) so that when it does rain,
the water and residue slide easily from the panel rather than collecting on the panel surface.
1.5.2 Electricity Demand
The amount of electricity consumed at the airport is an important factor to consider when developing a
solar PV design concept. Solar PV works best where the electricity can be generated and consumed on-
site. This is one of the central reasons why airports are good locations for solar PV because airports are a
high energy consumption land use. A secondary factor often correlated with electricity demand is
available space.
There are economic benefits to serving an on -site electricity load with a solar project. Connecting to the
electricity grid adds costs to the project in the form of additional infrastructure and utility interconnection
fees. Solar is also physically easier to integrate into an existing land use either on rooftops or available
lands making it compatible with existing building electrical systems.
A good example of an on -site use is a rooftop PV installation on a parking garage that powers the garage
lights. A ground- mounted facility with greater generation capacity can provide electricity to a nearby
terminal or maintenance building with larger electricity consumption needs. Alternatively, a general
aviation airport with minimal electricity demand may only be able to justify a solar project if it benefits
from state electricity generation and distribution laws (See Chapter 4, Net Metering).
It is also important to note the relationship between electricity demand and property availability in
assessing the feasibility of solar projects. Urban airports, on one hand, tend to be space constrained but
have a high demand for electricity on -site. Project designers may need to first look at rooftop availability,
and secondarily creative locations on the airfield that meet FAA airport design standards. Rural airports,
on the other hand, likely have plenty of space to site a solar project, but no on -site electricity demand
requiring a grid connection and increased costs. Due to these siting and economic factors, solar projects
should be designed to balance electricity demand and available space. See Chapter 2 for more detail on
airport planning for solar projects.
1.6 The Electrical Grid
The electrical grid is a complex wired system that provides the country with access to electricity. It has
developed as a patchwork of some 4,000 separate systems, that have been consolidated into just three
primary systems -- Eastern, Western, and Texas -- each operating as a service provider. Distributed
generation facilities, like solar and wind, dispersed throughout the grid are an important new tool used by
utilities to provide electricity locally as an alternative to increasing capacity at central power plants and to
upgrading transmission lines.
1.6.1 System Infrastructure
As indicated in Figure 10 below, the electrical grid is divided up between generation, transmission, and
distribution. Power generation systems include fossil fuel plants, nuclear plants, hydroelectric dams,
biomass plants, wind farms, and solar farms. The electricity is converted by a step -up transformer to a
transmission voltage and fed out on high- voltage transmission lines that are efficient at transmitting
electricity over long distances with the least amount of electricity loss. The largest of these lines — the
15
FAA Solar Guide
Chapter 1. Airports and Solar Energy
backbone of the grid — have a capacity of 765 W. As electricity is moved closer to a demand center, the
transmission voltage is stepped -down. Very large electricity users may receive electricity at the lowest
transmission voltages of 230 or 138 kV. All other users (e.g., industrial, commercial, and residential) are
served by electricity that is further stepped -down to a distribution voltage of various capacities suited to
serve the different types of customers.
Figure 10: Schematic of the U.S. Electrical Grid System
Color Key:
Transmission
Distribution Transmission Lines
Generation 765, 500, 345, 230, and 138 W
Generating Generator Step Transmission
Station Up Transformer Customer
138kV or 230kV
Source: http : / /www.oe.energy.gov /information _center /electricityl0l.htm
1.6.2 Electricity Transactions
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Secondary Customer
120V and 240V
Electricity commerce proceeds along two parallel systems: physical and financial. These different
transactions are illustrated in Figure 11.
Physically, electricity is produced at a generating source and pumped into the grid, from which customers
tap their own electrical needs. An independent system operator is responsible for managing the electrical
grid in a manner that ensures stability of the voltage and sufficient supply to meet the common demand.
When you turn on a light in your house, you are tapping the grid for electricity; however, the source of
that electricity may not be easy to distinguish. Physically, electricity moves through the electrical system
from source to user, where the closest users to a source are likely obtaining electricity from that source.
As users are located farther away from a generation source, it becomes more difficult to determine which
source is providing supply. In the U.S., where large regional power plants provide electricity supply as
opposed to smaller "distributed" sources, there is greater distance between the electricity generator and
the electricity consumer. However, the independent system operator is primarily focused on making sure
that the entire grid is stable and electricity is available, rather than accounting for who is using electricity
from which generator.
Financially, the utility company acts as the middle manager between electricity producers and consumers.
It buys electricity on the spot market in quantities to match the total demand of its service territory.
Market prices vary based on day and time of transaction, and are reflected in peak and non -peak prices.
The electricity a utility buys is not a specific commodity produced by a generator and delivered to the
utility; rather it is a paper transaction allowing producers to be paid for loading electricity into the grid
and customers to tap power from the grid. A comparable illustration is the electricity grid as a bathtub,
where generators fill the tub at one end and users withdraw water from various locations around the
16
FAA Solar Guide Chapter 1. Airports and Solar Energy
edges. The utility company bills customers for electricity use based on the amounts they paid on the spot
market plus their associated business fees (e.g., distribution charges, system maintenance charges, and
management fees). Many states have instituted an additional surcharge for renewable energy that has been
collected in a fund to support in -state renewable energy developments.
Utility companies also manage the local utility infrastructure in their service territory. Utilities make sure
that the electrical distribution network is functioning effectively. They also manage the infrastructure by
performing regular maintenance and constructing upgrades to ensure that future electrical demand can be
supplied.
Figure 11: Schematic Flow of Electricity Transactions Over the Grid
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Another factor is that many States are passing so- called Renewable Portfolio Standards (RPS), which
require utilities to purchase a portion of their total electricity from renewable energy generators. RPS
programs create a local market for renewable energy that has a value greater than conventional energy.
To validate that the utility is "purchasing" renewable energy and that renewable energy generators are
specifically compensated for their unique commodity, paper transactions in the form of Renewable
Energy Credits (RECs) are used. Utilities pay an added price for the REC to verify their purchase of
renewable energy under the RPS mandate. That added price goes directly to the renewable energy
generator which contributes to making the generation of renewable energy profitable. In a physical sense,
the "green" electricity flows from the generator into the grid and mixes with all other electricity sources.
No user can claim to tap only "green" electricity if it is utilizing the grids.
'U.S. Department of Energy. 2010. Renewable Energy Certificates.
http: / /apps3. eere. energy.gov /greenpower /markets /certificates. shtml ?page =0
17
FAA Solar Guide Chapter 1. Airports and Solar Energy
Renewable Energy Credits (RECs), like soybeans, are commodities that are bought and sold in an open
trading market. A REC represents the difference between the price of conventional electricity and the
price of the renewable electricity (also known as the price premium). Some entities, like companies
and universities, are willing to pay this premium for renewable source credits to satisfy their customers
or members. In other cases, utilities may be required by state law to buy renewable electricity and
pursue RECs, driving up their value. The extra price for RECs makes the renewable electricity product
1.6.3 Solar Grid -Tie System
Solar systems are often times designed to serve on -site electricity demand only. This condition may be
referred to as distributed generation. Grid -tie solar refers to those systems that feed electricity to the
utility grid. Because many airports have a substantial electricity load on -site, the electricity they generate
may never reach the grid. For others, seasonal variations in on -site demand (e.g., high load for summer
cooling, lower in winter) and electricity production (more in summer than in winter) may determine if the
airport is importing or exporting electricity from the grid.
State law determines how much the on -site generator (e.g., the airport) will be compensated for the
electricity it produces and exports. These laws are collectively termed "net metering." States that require
utilities to compensate generators at the retail electricity price as opposed to the wholesale price provide
additional economic incentives for renewable generation. This is another important factor to consider in
evaluating project economics (see Chapter 3). Regardless of the amount of electricity produced, the
utility must approve the interconnection of the system because it will interface with the grid on -site and
therefore must meet technical specifications and provide for safety considerations.
1.6.4 Distributed Generation and Its Benefits to the Grid
Energy generation projects provide electricity to a user. Central power plants push the electricity onto the
electrical grid where it can be tapped by consumers. Smaller generation projects can be located anywhere
on the grid to serve local users. These facilities are referred to as "distributed generation" and they
include facilities like solar and wind.
Distributed generation projects benefit both the utility and the generator. By supporting a distributed
generation project, utilities can avoid more costly upgrades to grid infrastructure that may be capacity
constrained and require substantial investments. Utilities may offer their own rebate programs to
customers that make localized upgrades to minimize their electricity demand either through energy
efficiency or on -site generation. Typically, these are small investments but in some instances might be a
source for small -scale solar projects. Generators benefit by producing electricity at a cheaper cost near
the electricity users and avoiding transmission charges applied by the utility. Net metering programs
authorized by Federal legislation and incentivized by individual states require that the utility buy -back
excess electricity produced on -site.
Depending on the size of a project, locating the generation source close to the user can minimize
electricity loss (over distance) and obviate the need to compensate the local utility. These conditions are
particularly important for solar projects whose economics are tight. Building a long electrical
interconnection cable, particularly on an airport where all such lines must be buried, can be a costly
expense. This illustrates one of the fundamental advantages of rooftop solar which can be built right at
the electricity load with interconnection lines made internal to the building.
18
FAA Solar Guide Chapter 1. Airports and Solar Energy
Case Study #1 — Deploying Different PV Designs
Denver International Airport — Pena Boulevard and Fuel Farm Projects — Colorado
Denver International Airport (DIA) has been at the forefront of airport solar energy development projects.
Currently, DIA has constructed two projects in
partnership with private developers. The Pena
Boulevard Project, located adjacent to the
entrance road to the Jeppesen Terminal, was
commissioned in July 2008. It is a 2 MW
ground- mounted project consisting of 9,250
Sharp 216 -watt solar panels on a single axis
tracking system. A second project located at
the fuel farm went online in December 2009.
That project is a 1.6 MW ground- mounted
project consisting of 7,400 Sharp fixed solar
panels. DIA is presently exploring additional
projects.
DIA has been first in -line, and its experiences
have been very helpful to future solar projects,
Traekinr system at the Pena Boulevard Solar Farm including its own. One significant change
between its first two projects was switching from a single axis tracking system to a fixed system with no
moving parts. Tracking is employed to maximize contact of the photovoltaic panels with the sun and
increase electricity generation efficiency. The private developer of the first project determined that
tracking was appropriate for the Pena Boulevard Project and had such a system designed. The tracking
system experienced operational difficulties exacerbated by the drastic extremes in weather conditions
which compromised the lubricating fluids. As a result, the cost of system maintenance was higher than
budgeted and downtime was necessary for repairs which reduced electricity production. While the
financial impact of these difficulties were borne by the private developer who designed, built, and owns
the facility, DIA received less solar electricity in its first year of operation than expected. To avoid
potential complications with tracking systems, the developer of the second solar project at the fuel farm
decided to deploy a fixed mounted system with no moving parts. While the fixed system does not
generate the same amount of solar electricity as a fully operational tracking system, it provides a certain
minimum electricity production level and minimizes risks associated with unexpected maintenance costs.
Fixed System at the Fuel Farm Solar Farm
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FAA Solar Guide Chapter 1. Airports and Solar Energy
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FAA Solar Guide Chapter 2. Siting Solar Projects
2 DESIGN CONSIDERATIONS: PLANNING AND SITING
SOLAR FACILITIES
Solar PV projects are generally a compatible land use at airports because of their low profile and ease of
integration with existing facilities. The economics of projects are favorable because of the large on -site
energy demand and good solar exposure. However, projects must meets standards to protect air
navigation and existing aviation activities, as well as supporting national environmental policies.
Sponsors need to consider several factors to determine the feasibility of a solar project, including the
consistency of a project with aviation activities and approved airport master plans, potential
environmental issues associated with project siting alternatives, and the need to obtain approvals from the
FAA including an update to the Airport Layout Plan. Sponsors should consult with the FAA early and
throughout the process to ensure that a proposed project meets all FAA requirements.
This chapter starts with an overview of a typical solar project life cycle and is followed by a description
of likely project participants, airport planning design considerations, and the FAA approval process.
2.1 Solar PV Project Life Cycle
A solar system that is designed and installed properly will operate for more than 20 years. The PV panel
itself has no moving parts and can last more than 30 years9. The following is a brief description of the
stages of a solar PV project.
2.1.1 Siting and Feasibility
The siting and feasibility stage is the first step from idea to project development. Whether completed
internally by the airport, a prospective development partner, or an energy consultant, the siting and
feasibility study includes an assessment of the different locations for a project including compatibility
with aviation, central design issues such as size and architecture, and a costibenefit analysis of alternative
scenarios. These elements are brought together to form a coherent analysis of the options with
recommendations for next steps. An important outcome of this study is to determine if the airport will
seek to own the system or lease property to a third -party private developer.
2.1.2 Design and Permitting
Once a project has been defined, it must go through a more detailed design and the permit approval
process. The airport operator or its representatives should initiate early coordination with the FAA as the
design is developed to ensure that the project complies with FAR Part 77, NEPA, and FAA requirements
for land leases and funding as applicable. Detailed design information may be needed to look at whether a
solar tracking system makes sense and to investigate issues such as roof load and geotechnical factors.
Once the design has been finalized, applications are filed for all Federal and state permit approvals.
2.1.3 Installation
Depending on project size and installation platform (building or ground), solar projects are relatively
simple to install with construction occurring in days, weeks, or months. Like any construction project,
9 U.S. Department of Energy. 2008. Solar FAQs — Photovoltaics — The Basics.
httv:Havvsl.eere.energy.gov /solar /cfn/faas /third level.cfm/name= Photovoltaics /cat = The %20Basics
21
FAA Solar Guide Chapter 2. Siting Solar Projects
the solar installation involves mobilization, preparation, building and connecting the system, testing, and
finishing. The construction manager is the critical point person to make sure all is accomplished as
designed on time and on budget. A construction safety plan must be prepared and approved prior to the
issuance of a notice to proceed.10
2.1.4 Operations and Maintenance
When the solar facility is operating, regular operations and maintenance (O &M) activity is minimal.
However, the system must be constantly monitored to ensure that its electricity production is maximized.
Should system production fall drastically, the owner will likely call in a local technical firm contracted to
perform O &M to look at the problem and make component changes as needed. This same firm may also
conduct periodic cleaning of the panels and vegetation management to ensure that the panels are
optimizing their electricity production potential. Typically, cleaning will occur twice each year and
vegetation management will depend on the setting.
2.1.5 Decommissioning /Re- commissioning
The end of a solar project's life cycle will trigger either decommissioning (dismantling) of the system or
re- commissioning or repowering (installation of a new system). While solar panels have a manufacturer's
expected life of 20 -25 years, the industry does not have much experience with decommissioning and re-
commissioning of solar facilities because systems built more than 20 -25 years ago are rare, and those
systems came with no such warranty and are quite different from the panels with warranties today. In
addition, useful life will vary among owners and will be dependent upon a particular system's production,
an individual assessment of O &M costs, and costs and benefits of repowering the system. As an
example, a system constructed on a school in Massachusetts is still producing about 90% of its original
design output 29 years after being installed.
2.2 Project Participants
The following is a brief description of each of the participants in a solar project. Generally, these
participants are the same regardless of owner or business structure. However, their level of involvement
may differ given the business structure and project details.
2.2.1 FAA Airports
There are 9 FAA Regions and 21 FAA Airport District Offices (ADOs) that manage the FAA's day -to-
day operations with the nation's airports. These operations include airport safety and standards, grant
management, and compliance. Regional FAA and ADO engineering, planning, compliance, and
environmental specialists are responsible for reviewing proposed airport projects and determining if they
comply with Federal airspace, airport, and environmental regulations, as well as airport sponsor's
obligations under Federal grant agreements and surplus property deeds of conveyance.
The FAA Office of Airports in Washington DC (Headquarters) develops national policies, standards,
regulations, and guidance for the national system of airports and oversees Federal funding, compliance,
and airport environmental reviews. Generally, solar projects are reviewed at the regional level with
10 FAA Order 5100.38C (Airport Improvement Program) states: All Safety Phasing Plans must be received, reviewed, and
coordinated with other FAA operating administrations, approved for airspace review, and approved for use prior to the start of all
construction projects.
22
FAA Solar Guide Chapter 2. Siting Solar Projects
Headquarters becoming involved only if a project requires additional resources or presents a complex
problem. Indeed, this guidance is intended to clarify FAA policy on solar projects in order to support
regional decision - making.
The FAA role in solar energy is multi- faceted.
First, the FAA ensures that solar projects are sited Early coordination with the FAA on solar
properly and do not cause safety problems for projects is essential to obtain FAA input and to
aviation or otherwise interfere with aeronautical address all of the issues so that timely approvals
and airport activities. Regional personnel are possible.
coordinate the airspace reviews of all construction
projects with other FAA organizations, including the Air Traffic Office of Obstruction Evaluation. FAA
also reviews solar project agreements for consistency with an airport sponsor's Federal obligations for its
financial self- sustainability, its preservation of legal rights and powers, and its retention of airport
revenue. In addition, the FAA is an operator of solar technology, generally PV solar, in remote areas or at
facilities where the construction of electrical lines is more expensive (e.g., LED runway lights, remote
communications, etc.). And finally, the FAA provides information and, in limited circumstances, funding
incentives to sponsors for solar installations. In this regard, the FAA seeks to support the modernization
and improved efficiency that solar technology can provide to airports.
2.2.2 Airport Sponsor
The airport sponsor, whether the owner or just the host of a solar facility, must act as the project's lead
applicant and main contact with the FAA. This responsibility extends to projects where a private solar
developer is leasing land from the airport to construct, own, and/or operate the facility. In this case, all
private entities involved in the project must be named on the required applications and forms. The
sponsor must be familiar with the regulatory review process and communicate on a regular basis with the
FAA to ensure that adequate information is developed for the project and that the approval process is
proceeding correctly. For solar projects on- airport, the airport sponsor is generally the applicant for all
permits and approvals. For off - airport projects, the developer will be the sole applicant.
The sponsor will be the day -to -day "eyes and ears" over the facility but will rely on other technical
experts for installation, operations, and maintenance. The airport will use the electricity produced and
either deduct that use from its regular utility bill (and realize cost savings) or pay the private owner a set
price for the electricity. The facility owner must work with the utility company (and installer) to ensure
that the facility is designed and built to conform to the electrical grid. Regardless of ownership structure,
the airport also coordinates with the FAA regional office on siting, design, and procurement to ensure that
the facility conforms to FAA regulatory and funding standards.
Prior to submitting any applications for FAA approval, the sponsor should contact the regional airport
planning staff to discuss the components of a proposed project. Using this Guide, the region or ADO and
the airport can consider the issues associated with locating solar projects on airports and draw on
expertise acquired by the sponsor to assess the potential for a project.
2.2.3 Utility
Regardless of whether the utility is a private investor -owned utility or a division of municipal or state
government (or quasi - public authority), the primary role of the utility is as protector of the electrical grid.
It must ensure that any generation system with a connection to the electric grid will not negatively impact
the grid. It must also ensure that it can access the system and shut it down for emergency operations and
scheduled system maintenance and repairs. The utility is also responsible for understanding the impact of
renewable energy systems on their state regulatory mandates and on company /agency revenue. Many
states have enacted renewable energy standards, which require utilities to generate or purchase a specified
23
FAA Solar Guide Chapter 2. Siting Solar Projects
amount of renewable energy per year. When purchasing renewable energy, utilities can accomplish their
mandates by acquiring renewable energy credits from eligible electricity producers. In addition, utilities
also need to be aware of when distributed energy projects go on -line so that they can forecast drops in
demand for grid - produced electricity and potential impacts on company revenue.
2.2.4 Private Developer
Private developers may act as a party contracted by the airport operator to build a solar facility, or they
may act as a turn -key contractor to design, finance, build, own, and operate a facility that supplies
electricity to the airport as a customer. In either case, the private developer brings to the airport a central
contact for the technical and financial aspects of solar development. Airports may seek to hire their own
experts as a check on the information provided by the developer.
2.2.5 Installer
The installer is the company with experience designing and installing solar systems. The developer may
also be the installer or the installer may be contracted to design and build the system.
2.2.6 Financier
Financiers can take a variety of forms depending on the business structure and ownership. Banks may
provide financing regardless of ownership. Private investors can take a diversity of forms but could
include individuals, companies, money fund managers, and venture capitalists. If the airport looks to
raise its own funds from borrowing, it may due so through municipal bonds or a project- specific
fee /charge /tax. Airports may also obtain funding through enterprise accounts, funding from other
municipal entities (like the municipal utility), and from grants. Private entities will take advantage of tax
credits from the Federal government (through the Internal Revenue Service) and from state taxes where
tax incentive programs have been enacted. Private entities can also use the power purchase agreement
(contract between the Airport and Developer for long -term electricity purchase), net - metering revenue,
and value of renewable energy credits to help secure bank and private investor financing. All of these
factors are discussed in greater detail in Chapter 4.
2.2.7 Other
Other entities that might be involved in an airport solar project include state and municipal governments,
interest groups, communities, and individuals. Government entities will provide supporting and
coordination roles to the airport. For example, fire departments may need to disconnect system
infrastructure in the event of an emergency. Local groups may offer technical assistance for development
of projects and community groups may want to know about the airport's solar activities and how they
benefit or potentially impact the community.
2.3 Airport Land Use and Safety Planning
Every airport sponsor has accepted an obligation to protect the airport from incompatible land uses. As
such, the airport owner must take care to know of potential land uses near the airport that may impact
aviation or expose the airport to liability. At the very least, sponsors that have legal or proprietary control
of land near its airport (cities and counties, for example) must prevent uses that are incompatible with
aeronautical uses of the airport, even if these uses are beneficial to the sponsor for non - aeronautical
reasons. Failure to take prudent steps and to exercise appropriate rights and powers to preserve the
aeronautical utility of the airport may lead to a loss of future Federal funding. In many cases, a sponsor
24
FAA Solar Guide Chapter 2. Siting Solar Projects
may not have the authority to prevent incompatible land uses near the airport. In such cases, the sponsor
should raise its concerns during public hearings and comment periods associated with project approvals.
Active project planning starts with a review of airport land use and safety criteria and approvals. Figure
12 below presents a flow chart of the FAA's review process for solar projects. The following section
addresses airport land uses and safety factors that must be considered prior to proceeding with airspace
and environmental reviews.
2.3.1 Lands and Buildings
In the process of exploring the technical viability of solar generation, the next stage is to evaluate the
specific aspects of project siting on the airport. One important consideration is available space. Many
airports have large open areas that may remain unused unless converted to an application like solar.
Available spaces might include noise buffers, flat areas near runways where other uses would infringe on
14 CFR Part 77 surfaces, or tops of hangars (though concerns for reflectivity and safety could still limit
the application of solar energy systems in some of these spaces). Because land - constrained urban airports
have fewer siting options than airports in more rural settings, rooftop installations on terminals, hangers,
and parking garages can sometimes be their only practical option. The FAA requirement that the airport
sponsor secure fair rental value from non - aeronautical lessees could impact the financial structure of a
solar proposal at a land constrained airport.
Ground - mounted solar projects have been successful at airports where the airport sponsor either (1) has
land that can be used for solar without affecting aeronautical planning or competition with other potential
uses, or (2) has identified unique compatible airport parcels to safely site solar on land that serves an
aeronautical purpose but may not be used for more intensive development. Ground - mounted projects are
only cost - effective when built at a larger scale occupying an area of multiple acres too large to be sited on
rooftops. Larger projects can offset the added cost of mounting structures by providing more electricity
revenue (or savings) relative to fixed costs of equipment and land prices.
Roof - mounted solar projects are constrained in size by available roof space. They are particularly
suitable at airports that either (1) do not have a large on -site electricity demand, or (2) have little open
land available for the safe placement of a ground- mounted system. Because roof - mounted projects are
collocated with a building electrical system, the cost of infrastructure from the panels to the existing
network tends to be smaller.
Under either option, the project must evaluate existing aviation and airport activities and ensure that the
project will not have a negative effect.
25
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FAA Solar Guide Chapter 2. Siting Solar Projects
2.3.2 Airport Design Standards
The design of airports and their facilities is strictly regulated to ensure that airports operate in a safe and
efficient manner. Airport design guidelines are provided in FAA Advisory Circular (AC) 150/5300 -13,
Airport Design". Some of the relevant zones near runways and taxiways where placement of structures
and activities are restricted include:
Building Restriction Line: a line that identifies suitable building area locations on airports. The
BRL should encompass runway protection zones, runway object free areas, the runway visibility
zone, NAVAID critical areas, areas required for terminal instrument procedures, and airport
traffic control tower line of sight.
Clearway: area connected to and extending beyond the runway ends. It has a slope from the
runway end of not greater than 1.25 percent and extends from 500 to 1,000 feet from the runway
end.
Object Free Area: an area that must be free of objects except those necessary for air navigation or
ground maneuvering purposes (see Figure 12).
Obstacle Free Zone: an area adjacent to the runway that precludes taxiing or parked airplanes, and
obstacle penetrations except for frangible visual NAVAIDs.
Runway Protection Zone (RPZ): an area off the runway end to enhance the protection of people
and property on the ground. While it is desirable to keep all objects clear in the RPZ, some
objects are permitted as long as they do not attract wildlife, are outside the OFA, and do not
interfere with navigational aids. For example, automobile parking facilities, although
discouraged, may be permitted. Residences and places of assembly are prohibited from the RPZ
(see Figure 12).
Runway Safety Area (RSA): a defined surface surrounding the runway prepared to reduce the
damage to aircraft that overshoot /undershoot the runway. No objects can be sited in an RSA
unless they are required to be there because of their function.
Taxiway Safety Area: a defined surface alongside the taxiway prepared to reduce damage to
aircraft. No objects can be sited unless they are necessary because of their function.
Taxiway Object Free Area: are areas adjacent to taxiways that prohibit service vehicle roads,
parked airplanes, and above ground objects except those located in the OFA because they are
needed for air navigation and ground maneuvering.
The FAA has broad authority to approve the placement of specific structures and activities relative to
their potential impact on aviation. Sponsors should review the FAA's Airport Design AC guidelines
when evaluating siting. Sponsors should also be aware of specific locations that may comply in principal
with the design AC but may be subject to discretionary FAA review for potential issues such as glare.
" FAA. 1989. Airport Design. FAA Advisory Circular 150/5300 -13. Most recently amended in 2009;
httl2: / /www.faa.gov /airports /resources /advisory circulars/ index. cfm/ go/ document.current/documentNumber /150 53
00 -13
27
FAA Solar Guide Chapter 2. Siting Solar Projects
Figure 13: Restricted Areas Near a Runway End
I CONTROLLED ACTIVfTYAREA I
RUNWAY OBJECT 10 CENTRAL PORTION
W - RUNWAY — — ' — — Vl/.,
FREE AREA % OF THE RPZ /
�_ — — — — — — — — —
t 200' L. CONTROLLED ACTIVITYAREA I
i —
Source: Advisory Circular 150/5300 -13, Airport Design
In general, the FAA does not recommend that sponsors locate solar facilities in the RPZ. However, the
FAA will consult on specific proposals like the one presented by Fresno on a case -by -case basis (see Case
Study #2, Solar Project Siting at Fresno Yosemite International Airport). Working with the FAA in
advance of site selection to confirm the appropriate siting relative to any discretionary criteria is
important whether conducted as part of a larger master planning process or as a stand -alone project.
2.3.3 Consistency with Aviation and Airport Activities
Airports have a primary mission to serve the flying public and facilitate safe and convenient air travel.
All other activities occurring at airports must support this primary mission and therefore must be
consistent with those fundamental activities.
In assuring compatibility, airport sponsors should use guidance provided in the Airport Design AC
(150/5300 -13) when siting PV installations and work with the FAA, State Aeronautics Divisions, and
stakeholders on master planning activities. While the Airport Design AC provides clear information
about areas critical to the protection of people and property, other planning activities like those associated
with solar facilities are discretionary. Working through the issues to understand the basic implications of
siting decisions will require information gathering, consultation, and education. In determining whether a
proposed solar project is compatible with aeronautical activities, sponsors should consider the following.
1. The project cannot be located in a Runway Object Free Area, Obstacle Free Zone, Runway Safety
Area, Taxiway Object Free Area or a Taxiway Safety Area.
2. The project cannot penetrate imaginary surfaces that define the lower limits of airspace including
the clearway.
3. The project must demonstrate that glare will not impact airspace safety. (Recommendations for
meeting this standard are described in Section 3.1.2.)
28
FAA Solar Guide Chapter 2. Siting Solar Projects
4. The project must consider construction period impacts on aviation. Airside projects may result in
modifications to typical flight procedures if contractors and equipment produce a temporary
impact on airspace. This may result from the need to access the project site by passing vehicles
and equipment close to runways. It may also occur if a large crane is necessary for installation
and the crane penetrates airspace due to its height.
5. The project must use airport property that is not designated for aeronautical activities or request a
formal land release or change in land use.
The evaluation of a project's consistency with aviation and airport activities is best conducted in
partnership with the FAA, using the Airport Layout Plan (ALP) as a starting point. Once the
compatibility assessment steps listed above have been taken, the sponsor will need to file a Form 7460
and obtain a formal airspace review from the FAA (see Section 3.1).
2.3.4 Consistency with the Master Plan and Airport Layout Plan
The FAA works with airports on a variety of planning processes. Those most relevant to solar projects
are Airport Master Plans and ALPS.
An Airport Master Plan is a comprehensive study of an airport which describes the short-, medium -, and
long -term development plans to meet future aviation demand. In accordance with AC 150/5070 -613,
Airport Master Plans 12, Master Plans are developed through a collaborative process to engage the airport,
agencies, businesses, and stakeholders in planning for the airport's future. The purpose of the Master
Plan is to identify critical issues related to the airport's infrastructure and direct financial resources to
address those issues. The ALP is then modified to include future infrastructure improvement projects
identified in the Master Plan.
Airports are beginning to recognize the potential for solar and may wish to identify possible future project
locations in the Master Plan and potentially the ALP. Most airports today have not included solar
projects as part of their future planning because the opportunity to develop on -site solar has only recently
become economical and foreseeable. Oftentimes, airports respond to an immediate opportunity presented
by a private party to partner on a solar project without extensive forecasting or planning. Referring to the
ALP is critical for both aviation compatibility and future success of solar generation. Airport sponsors
should review the ALP to determine if future projects are planned that might interfere with solar access.
As specified in AC 150/5070 -6B, an ALP depicts both existing and planned land uses and facilities at an
airport. Projects proposed for FAA funding must be identified on the ALP. To fulfill this requirement,
the ALP typically needs to depict the features of the existing and planned built environment on the
airport. For example, the built environment typically shown on the ALP includes the outline of a building
footprint or the limits of pavement. Facilities collocated with existing structures, such as an elevator shaft
on the roof of a terminal building, are usually not depicted on the ALP as they are located within the
footprint of the collocated structure. Without changing the footprint outline of the structure, the collocated
facility does not constitute a change to the ALP and subsequently a Federal action. While the need for
plan updates will vary depending on the number and type of projects completed by airports, the airport is
required to update the ALP if one has not been completed in several years. Grant assurances state that the
sponsor must maintain an up -to -date ALP. In general, solar installations at airports are either collocated
with existing facilities or installed independently on the ground.
12 FAA Advisory Circular AC 15015070 -613, Airport Master Plans, May O1, 2007
httl2: / /www.faa.gov /airports /resources /advisory circulars/ index. cfm/ eo/ document.current/documentNumber /150 50
70 -6
29
FAA Solar Guide Chapter 2. Siting Solar Projects
2.3.5 Airport Layout Plan Approval
The ALP must be approved by the FAA prior to authorization of Federal funds for airport improvement
projects. The importance of the ALP is as a consensus document illustrating existing conditions and
future development plans at the airport. Some small -scale development activities may not be specified on
the ALP. However, it is important to distinguish areas available for future aviation and non - aviation
purposes in lieu of specific development projects.
Solar projects have typically not been depicted on the ALP prior to project approval by FAA due to the
relatively quick planning and construction period. With the broader recognition that solar generation
might become part of an airport's development plans, sponsors are advised to include solar projects on
ALPS currently under revision or update. Ground - mounted solar projects trigger a Federal action and are
subject to NEPA review, which must be completed prior to construction.
As part of this Guide, the FAA is providing recommendations on what types of solar projects should be
depicted on an ALP. In summary, solar installations of any size, located on the airport, that are not
collocated on an existing structure (i.e., roof of an existing building) and require a new footprint, need to
be shown on an Airport Layout Plan (ALP). Collocated solar installations need to be shown on the ALP
only if these installations substantially change the footprint of the collocated building or structure.
Sponsors need to revise the top elevation of buildings or structures on the ALP when solar installations
increase the building or structure height.
2.3.6 Land Release Approval
Land releases are often necessary for solar projects where land is leased to a private entity for a 15 -25
year period to own and operate a solar facility." Several airports have developed solar facilities through
a public - private partnership whereby land is leased to a private developer who owns and operates the
facility and provides the electricity to the airport. In order for the sponsor to lease land for a non-
aeronautical purpose (such as electricity generation), it must consult with FAA. Solar projects in
Bakersfield, Denver, Fresno, and Oakland where land was leased for the solar facility, followed the
procedures summarized below.
Airport property is dedicated for airport purposes, including non - aeronautical, but aviation - compatible
uses to generate airport revenue. As airport property, however, there are certain obligations covering the
use of this property, which must be addressed before the land can be used or disposed of for non-
aeronautical uses. The FAA must ensure solar power use agreements for airport property for sale or lease
demonstrate that such use provides prudent financial benefit to the airport.
In some cases, extensive solar power uses of airport property will require FAA approval of a land release
request. If so, the sponsor must submit documentation which describes, among other items, the airport's
obligations to the land based on how it was acquired, the type of land release request, justification for the
release, demonstration that the airport will obtain fair market value in return for the release, and what will
be done with the revenue that is generated by the release. The proposed action subsequent to the release
must be shown to be in compliance with the ALP.
In most cases, the FAA prefers that airport land not needed for aeronautical use be leased rather than sold
so that it provides continuous income for airport purposes and preserves the property for future aviation
usage so long as the future use is compatible with airport operations. Solar projects where land is leased
to a private developer for a 15 -25 year period provides the airport with the right to reclaim the property
"htty: / /www.faa.gov /airports /eastern /ail)/sponsor guide /media/SGSect1doc
30
FAA Solar Guide Chapter 2. Siting Solar Projects
for future use after the lease period has ended. Land acquired with AIP noise compatibility grant funds
must, generally, be sold after the airport sponsor converts the land to compatible uses.
The sponsor must submit to the ADO the request to change the ALP and update Exhibit A to show that
the property will be used for non - aeronautical purposes. As stated in Section 4.2.2, the FAA's approval
either to release property for use as a solar electricity facility or to concur with an appropriate lease of
suitable airport property may constitute a Federal action triggering a NEPA review which must be
completed prior to FAA issuing a land release.
2.3.7 Environmental Screening
In addition to its statutory responsibility to protect air navigation and facilitate efficient air travel, which
are accomplished in part through effective airport planning and design, the FAA must also ensure that
approved projects and funds are consistent with national environmental laws and policies. Many solar
projects may be subject to review under the NEPA, as well as be required to obtain environmental permits
from Federal, state, and local agencies. Therefore, it is important that project proponents conduct an
initial environmental screening of their project to identify as potential environmental fatal flaws early on
before the project proceeds too far into siting and design.
Environmental issues that might arise in the NEPA review and individual permit review include
endangered species, wetland disturbance, water quality degradation from erosion and sedimentation,
hazardous materials, and historic and archaeological resource impacts. While existing solar facilities on
airport property do not appear to be wildlife attractants, the environmental screening process should look
carefully at potential wildlife impacts. 14 The environmental screening process should collect information
on existing and historic habitats and land uses in the proposed construction area using such means as
statewide geographic information system databases, file searchers, and consultation with municipal
planners and agency personnel. Should a unique environmental resource be identified for a proposed site,
alternative sites or mitigation of adverse impact options should be evaluated before proceeding (see
Section 3.2 for discussion of the environmental review process).
14 Example: the County of Sacramento CA is addressing concerns about the potential impacts of proposed airport
solar development on hawk foraging habitat (Letter from the Airport Manager to the County Planning and
Community Development Department, September 29, 2010).
31
FAA Solar Guide
Chapter 2. Siting Solar Projects
Case Study #2 — A Unique Siting Example
Fresno Yosemite International Airport (FYI) — California
°? ti�6� ���•P
0050 1
li
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,�. i
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OFZ - Object Free Zone ,• —,�
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Source: City of Fresno
The City of Fresno constructed a 2.4 MW ground- mounted solar generation system in June 2008. The
project consists of 11,700 Sharp solar panels on a single axis tracking system. The project was financed
through a Power Purchase Agreement (PPA) with a private developer, and received state support in the
form of rebates and utility long -term contract purchase requirements. The panels produce enough
electricity to serve approximately 58% of the airport's annual average electricity load.
The airport discussed several different sites with the private developer and ultimately agreed to locate the
project near the end of Runway 29 and adjacent to the Object Free Area but inside a portion of the
Runway Protection Zone. This area, due to its location relative to air traffic, was unusable for any land
uses requiring regular presence by people. In addition, unmanned structures were constrained to only low
profile ones that did not penetrate into the approach zone. For those reasons, the land had little value
which made it a very suitable location for a solar project.
Because leases must be reviewed by the FAA and the price of the lease must reflect a fair market value
standard, leases of land potentially valuable for other development results in higher solar electricity
prices. Locating solar on land with less value keeps the solar electricity price down making PPA prices
both cost competitive for the airports and profitable for the private developer. As a result, land that would
otherwise provide no value becomes a new revenue source to the airport. In general, the FAA does not
recommend that airports locate solar projects in the RPZ. However, the FAA will review specific airport
proposals like the one presented by Fresno on a case -by -case basis.
32
FAA Solar Guide Chapter 3. Regulatory and Safety
3 REGULATORY AND SAFETY REQUIREMENTS FOR SOLAR
PROJECTS: MEETING AIRPSACE AND ENVIRONMENTAL
STANDARDS
Solar development proponents must plan their projects to avoid impacts on aviation and the environment.
As part of an Airspace Review, Airport Sponsors should assess airspace penetration, reflectivity, and
communication systems interference for all airport solar projects whether ground or building- mounted.
The FAA is also authorized to review all projects for compliance with national environmental laws. This
chapter provides guidance to the FAA and sponsors on FAA procedures for reviewing proposals to
construct solar PV projects on airport property or in the vicinity of the airport. Because solar projects
have opened up new issues that are not familiar to FAA technical reviewers and sponsors, past FAA
project reviews were performed on a case -by -case basis. This chapter provides FAA regional personnel
with needed information and tools to conduct more consistent and timely reviews of solar projects.
Please refer back to Figure 12, FAA Review of Solar Projects.
The following section summarizes FAA Airspace Reviews under Part 77, which provides the FAA with
broad authority for protecting the nation's airspace. The discussion of Part 77 requirements includes the
triggers for FAA review of solar projects at or in the vicinity of the airport.
3.1 Airspace Review
The FAA's foremost mission is to ensure a safe national air navigation system. To meet this objective, the
FAA conducts aeronautical studies of proposed activities that could impact airspace. These studies
review physical incursions of proposed structures into airspace, interference with radar communications,
and any other conditions that might negatively impact air traffic. Figure 14 illustrates potential airspace
conflicts. Due to its broad authority to protect airspace, the FAA must be given data to review any
construction or alteration on a public use airport regardless of height or location. For projects
proposed on airport property, sponsors must file documentation with the FAA so that it can complete an
airspace review and assess the potential impact of the project on air navigation. For off - airport projects,
local governments, solar developers, and other stakeholders in the vicinity of an airport have the
responsibility to inform the FAA about proposed projects so that the agency can determine if the project,
especially if large, presents any safety or navigational problems.
33
FAA Solar Guide Chapter 3. Regulatory and Safety
Figure 14: Physical Penetration of Airspace
Wind turbine penetrates
approach surface
All solar projects at airports must submit to FAA a Notice of Proposed Construction Form 7460 under
Part 77 to ensure the project does not penetrate the imaginary surfaces around the airport or cause radar
interference or glare.ls Even if a project will be roof mounted and the height will be below an existing
structure such as a building or light fixture, the sponsor must still submit a case for analysis to ensure that
the project does not cause glare or interfere with radar installations. 16 The FAA will conduct an
aeronautical study of the project and will issue a determination of hazard or no hazard. The timeline for
these approvals is typically 30 -45 days.
Due to its broad authority to protect aviation safety, the FAA may need to review any major solar
project regardless of height or location.
FAA's regional or ADO offices will process the 7460 data and conduct the aeronautical studies to ensure
the project will not penetrate the imaginary surfaces or interfere with radar or create a potential glare
hazard. The aeronautical studies will be conducted by the following offices:
• Air Traffic Obstruction Evaluation Office (AT OES) — Responsible for evaluating Part 77
requirements.
Air Traffic Operation Service Group (AT OSG) — Responsible for coordinating with air traffic
control to identify any operation impacts.
" FAA authority to review non - physical penetrating impacts such as communications interference and reflectivity is
stated in Section 6.3.2 of "Procedures for Handling Airspace Matters ", FAA Order JO 7400.2G, April 10, 2008.
16 The 7460 case data can be completed as a hard copy or online at https:// oeaaa. faa .gov /oeaaa/extemal /portal.jsp.
34
FAA Solar Guide Chapter 3. Regulatory and Safety
• Technical Operations (Tech Ops) — Responsible for evaluating the case for impacts to NAVAIDs,
conducting electromagnetic and line -of -sight shadow studies, and highlighting frequency
problems.
• Flight Standards (FS) Responsible for reviewing proposals to determine the safety of aeronautical
operations, and of persons and property on the ground.
• Flight Procedures (FP) - Responsible for evaluating proposals to determine impacts on instrument
procedures and whether aircraft instrument operations can be conducted safely.
• Airports (ARP) — Identify the structure's effect on existing airports and planned improvements
based on airport design criteria including assessing potential impacts on airport operations,
capacity, efficiency, and development, and making recommendations for eliminating adverse
effect.
The Form 7460 should be accompanied by a discussion of consistency with the ALP, and address
airspace issues of physical penetration, communications systems interference, and reflectivity. It should
include the following information:
• Location of panels
• Location of radar facilities
• Location of Control Tower
• Verification that panels are located outside of airport design prohibited areas
• Verification that panels will not physical penetrate airport imaginary surfaces
• Verification that solar facilities will not block radar communications
• Assessment of reflectivity including time periods when reflection may contact Control Tower
and aircraft
Once the FAA completes the aeronautical study, a determination will be made regarding the impact to air
navigation. The determination will be one of the following: a No Hazard Determination, a Conditional
Hazard Determination, or a Final Hazard Determination. Airport sponsors for currently operating solar
PV projects that have submitted Form 7460 to the FAA for an airspace review have obtained a "No
Hazard Determination."
3.1.1 Airspace Penetration
14 CFR Part 77 imaginary surfaces establish standards for determining obstructions in navigable airspace.
These imaginary surfaces extend out from the runway in a manner that reflects where aircraft are likely to
fly while also accommodating unforeseen aircraft maneuvers. The height above the ground of the
imaginary surface is lowest near the runway and increases at distance from the runway. Away from
airports, airspace begins at 200 feet above ground level.
Airports must maintain vegetation, prevent building, and manage any temporary construction activity to
conform with Part 77 analysis determinations. A figure depicting the imaginary surfaces extending out
from the airport is presented below.
35
FAA Solar Guide
<1�
Chapter 3. Regulatory and Safety
Figure 15: Imaginary Surfaces that Define Navigable Airspace
Lr `.'`:
1/1
CONICAL SURFACE
PRECISION INSTRUMENT APPROACH
HORIZONTAL SURFACE 150 ABOVE
ESTABLISHED AIRPORT ELEVATION
VISUAL OR NON -P RE C IS I ON
APPROACH (SLOPE -E)
f�.
RUNWAY CENTERUNES
Large structures, like communication towers and wind turbines, often exceed 200 feet in height and
therefore are required to submit a Form 7460, Notice of Proposed Construction or Alteration. Structures
shorter than 200 feet but located within 20,000 feet of a runway may also penetrate navigable airspace.
Solar panels, when tilted properly to the south - facing sun, extend to a height of as little as three feet above
the ground making it possible for siting close to runways without penetrating an imaginary surface. The
low profile of solar panels allows for greater flexibility in finding the most appropriate location on the
airport for electricity generation. Projects that have located solar panels in close proximity to runways
and taxiways have conducted analyses to ensure that the solar panels do not penetrate the imaginary
surface.
3.1.2 Reflectivity
Reflectivity refers to light that is reflected off of surfaces. The potential impacts of reflectivity are glint
and glare (referred to henceforth just as glare) 17 which can cause a brief loss of vision (also known as
flash blindness)18. The amount of reflectivity varies greatly among solar technologies with concentrated
solar power technologies being highly reflective and PV being primarily absorptive. Because solar
energy projects introduce new visual surfaces to the airport setting where reflectivity could result in glare
Glint is a momentary flash of bright light, whereas glare is a continuous source of bright light.
is FAA Order 7400.2f defines flash blindness as "Generally, a temporary visual interference effect that persists after
the source of illumination has ceased."
36
FAA Solar Guide Chapter 3. Regulatory and Safety
that causes flash blindness episodes on pilots or air traffic controllers, reflectivity requires study during
project siting and design. The amount of analysis will depend on site - specific issues. The following
section summarizes the issue of reflectivity followed by a range of strategies to assess its potential impact
Reflectivity Basics
Understanding how reflectivity is measured requires a review of some basic optical concepts
The amount of light reflected off of a solar panel surface depends on the amount of sunlight hitting the
surface as well as the surface reflectivity. The amount of sunlight interacting with the solar panel will
vary based on geographic location, time of year, cloud cover, and solar panel orientation. Often
1000W /m2 is used in calculations as an estimate of the solar energy interacting with a panel when no
other information is available. According to researchers at Sandia National Lab, flash blindness for a
period of 4 -12 seconds (i.e., time to recovery of vision) occurs when 7 -11 W /m2 (or 650 -1,100 lumens /m2)
reaches the eye19.
Once the amount of sunlight interacting with the panels is known, reflectivity from solar projects will
vary based on the type of solar power system and its materials and design. Solar PV employs glass panels
that are designed to maximize absorption and minimize reflection to increase electricity production
efficiency. To limit reflection, solar PV panels are constructed of dark, light - absorbing materials and
covered with an anti- reflective coating. Today's panels reflect as little as 2% of the incoming sunlight
depending on the angle of the sun and assuming use of anti- reflective coatings20. Using the previously
mentioned value for solar irradiance, this would mean roughly 20 W /m2 are reflected off of a typical PV
panel. CSP systems, on the other hand, utilize mirrors to maximize reflection and focus the reflected
sunlight and associated heat on a design point to produce steam which generates electricity. The percent
of sunlight reflected is about 90% translating to 900 W /m2 reflected from a CSP system. Figure 16
presents a scale of percent sunlight reflected from a variety of surfaces including PV and CSP solar
generating systems. Different analyses are necessary to understand the potential for glare impacts for
each of these systems.
19 Ho, Clifford, Cheryl Ghanbari, and Richard Diver. 2009. Hazard Analysis of Glint and Glare From
Concentrating Solar Power Plants. SolarPACES 2009, Berlin Germany. Sandia National Laboratories.
20 Evergreen Solar. 2010. Evergreen Solar; More Electricity. Fact Sheet.
37
FAA Solar Guide
Chapter 3. Regulatory and Safety
Figure 16: Reflectivity Produced by Different Surfaces"
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While the amount of light reflected off a surface is important, the nature of the reflected light is even
more important when assessing the potential for flash blindness. One important characteristic of light to
consider is whether the reflected light is "specular" or "diffuse ". Specular reflection reflects a more
concentrated type of light and occurs when the surface in question is smooth and polished. Examples of
surfaces that produce specular reflection include mirrors and still water. Diffuse reflection produces a
less concentrated light and occurs from rough surfaces such as pavement, vegetation, and choppy water.
Figure 17 graphically illustrates specular and diffuse reflections. All surfaces in reality produce a mixture
of both types of reflections, but the surfaces listed above are dominated by one type.22 Outside of very
unusual circumstances, flash blindness can only occur from specular reflections. The exact percentage of
light that is specularly reflected from PV panels is currently unknown. However, because the panels are a
flat, polished surface, it is a reasonable assumption that most of the light is reflected in a specular way and
thus is fundamentally different from that reflected off a rougher surface.
2' http: / /spacemath.gsfc.nasa.gov
Newton, C. 2007. A Concentrated Solar Thermal Energy System. Florida State University College of
Engineering. Master's Thesis.
22 Ho et al
38
FAA Solar Guide
1%
Chapter 3. Regulatory and Safety
Figure 17: Different Types of Reflection
Completing an Individual Glare Analysis
N
Evaluating glare for a specific project should be an iterative process that looks at one or more of
the methodologies described below. The sponsor should coordinate closely with the FAA
Regional Environmental Specialist to collect the data necessary for a particular project review.
These data should include a review of existing airport conditions and a comparison with existing
sources of glare as well as related information obtained from other airports with experience
operating solar projects.
Because the FAA has no specific standards for airport solar facilities and potential glare, the type
of glare analysis that is needed may vary. Depending on site specifics (e.g., existing land uses,
location and size of the project) an acceptable evaluation could involve one or more of the
following levels of assessment:
(1) A qualitative analysis of potential impact in consultation with the Control Tower,
pilots, and airport officials
(2) A demonstration field test with solar panels at the proposed site in coordination with
FAA Tower personnel
(3) A geometric analysis to determine days and times when an impact is predicted.
The level of assessments should be followed step -by -step and, at the conclusion of each step, the FAA
will determine if potential reflectivity issues have been addressed adequately.
The extent of reflectivity analysis required to assess potential impacts will depend on the speck
project site and system design.
39
FAA Solar Guide
1. Assessing Baseline Reflectivity Conditions
Chapter 3. Regulatory and Safety
Reflection in the form of glare is present in current aviation operations. The existing sources of glare
come from glass windows, auto surface parking, rooftops, and water bodies. Figure 16 shows the percent
of incoming sunlight that is reflected off of a variety of surfaces. At airports, existing reflecting surfaces
may include hangar roofs, surface parking, and glassy office buildings. To minimize unexpected glare,
windows of air traffic control towers and airplane cockpits are coated with anti - reflective glazing and
operators will wear polarized eye wear. Potential glare from solar panels should be viewed in this
context. Any airport considering a solar PV project should first review existing sources of glare at the
airport and the effectiveness of measures used to mitigate that glare.
2. Tests in the Field
Potential glare from solar panels can pretty easily be viewed at the airport through a field test. A few
airports have coordinated such field tests with the FAA Air Traffic Control Personnel to assess the
significance of glare impacts. It is simply done by taking a solar panel out to the proposed location of the
solar project and tilting the panel in different directions to generate various levels of glare onto the air
traffic control tower. For the two known cases where such a field test was conducted, the tower personnel
determined that the effect of the glare produced by the solar panels was not significant.
3. Geometric Analysis
Geometric studies are the most technical approach for reflectivity issues that are difficult to assess.
Studies of glare can employ geometry and the known path of the sun to predict when sunlight will reflect
off of a fixed surface (like a solar panel) and contact a fixed receptor (e.g., control tower). At any given
site, the sun not only moves across the sky every day, but its path in the sky changes during various times
of year. This in turn alters the destination of the resultant reflections since the angle of reflection for the
solar panels will be the same as the angle at which the sun hits the panels. The larger the reflective
surface, the greater the likelihood of glare impacts. Figure 18 provides an example of such a geometric
analysis.
Figure 18: Simple Example of a Geometric Analysis
40
FAA Solar Guide Chapter 3. Regulatory and Safety
Facilities placed in remote locations, like the desert, will be far from receptors and therefore potential
impacts are limits to aircraft passing by. Because the intensity of the light reflected from the solar panel
decreases with increasing distance, an appropriate question is how far do you need to be from a solar
reflected surface to avoid flash blindness? It is known that this distance is directly proportional to the size
of the array in question 23 but still requires further research to answer completely. An aviation - specific
dynamic model that could evaluate potential impacts on fixed (Control Tower) and moving (aircraft)
sensitive receptors would be a beneficial tool.
The FAA Airport Facilities Terminal Integration Laboratory ( AFTIL), located at the William J.
Hughes Technical Center at Atlantic City International Airport, provides system capabilities to evaluate
control tower interior design and layout, site selection and orientation, height determination studies,
and the transition of equipment into the airport traffic control tower environment. AFTIL regularly
conducts computer assessments of potential penetrations of airspace for proposed airport design
projects and has modeled the potential characteristics of glare sources, though not for solar projects.
AFTIL may be a resource for regional FAA officials and sponsors who seek to evaluate the potential
effects of glare from proposed solar projects. See htto: / /aftiLtc.faa.gov/ for more information.
Experiences of Existing Airport Solar Projects
Solar installations are presently operating at a number of airports including megawatt-sized solar facilities
covering multiple acres. Project managers from six airports where solar has been operational for one to
three years were asked about glare complaints. Air traffic controllers were contacted from three of those
airports and asked to comment on the effect of glare on their daily operations. To date, there have been
no serious complaints from pilots or air traffic control due to glare impacts from existing airport solar PV
installations. Any potential problems in this area have apparently been resolved prior to construction
through one or a combination of the strategies described above. The anecdotal evidence suggests that
either significant glare is not occurring during times of operation or if glare is occurring, it is not a
negative effect and a minor is part of the landscape to which pilots and tower personnel are exposed.
3.1.3 Communication Systems Interference
Communication systems interference includes negative impacts on radar, NAVAIDS, and infrared
instruments. Radar interference occurs when objects are placed too close to a radar sail (or antenna) and
reflect or block the transmission of signals between the radar antenna and the receiver (either a plane or a
remote location). Though it is possible for interference to be caused by other communication signals,
more commonly, it is caused by a physical structure placed between the transmitter and receiver.
However, similar concerns have been raised for airport -based navigational aids and communication
facilities. NAVAIDS can be impacted similarly to radar, but they include passive systems with no
transmitting signals. Impacts on infrared communications can occur because the solar panels continue to
retain heat into the first part of dusk and the heat they release can be picked up by infrared
communications in aircraft causing an unexpected signal.
Studies conducted during project siting should identify the location of radar transmission and receiving
facilities and other NAVAIDS, and determine locations that would not be suitable for structures based on
their potential to either block, reflect, or disrupt radar signals. Due to their low profiles, however, solar
PV systems typically represent little risk of interfering with radar transmissions. In addition, solar panels
27 Ho, Clifford, Cheryl Ghanbari, and Richard Diver. 2009. Hazard Analysis of Glint and Glare From
Concentrating Solar Power Plants. SolarPACES 2009, Berlin Germany. Sandia National Laboratories.
41
FAA Solar Guide Chapter 3. Regulatory and Safety
do not emit electromagnetic waves over distances that could interfere with radar signal transmissions, and
any electrical facilities that do carry concentrated current are buried beneath the ground and away from
any signal transmission.
To ensure such systems are further isolated, past solar projects have also been required to be set back
from major on- airport radar equipment as a protected buffer. The solar fields at Oakland and Bakersfield
were required to meet setbacks from transmitters of 500 and 250 feet, respectively.
Off - airport solar projects are even more unlikely to cause radar interference unless located close to airport
property and within the vicinity of a radar equipment and transmission pathways. However, when located
near radar installation, CSP projects can cause reflection of radar transmission due to their metallic
components. Some reflections can be mitigated with Ram (radar absorbing material) coatings but these
can be cost prohibitive. One project located just outside the fence at the Phoenix Airport was reviewed by
FAA and conditions were placed on the Airspace Review approval to address potential concerns with
radar interference. In many cases, communication and coordination with the proper FAA officials can
mitigate the issues and concerns regarding solar power installations in and around airports.
3.2 Environmental Review
Like other development projects, solar facilities are subject to Federal, state and local environmental laws.
This section reviews the NEPA process which is applicable to Federally - funded projects and
environmental issues that might be reviewed under NEPA or by individual permitting agencies.
3.2.1 NEPA
The National Environmental Policy Act (NEPA) requires Federal agencies to evaluate the environmental
impacts of their actions and consider alternatives to mitigate potential impacts. For all new projects at
airports which require a Federal action, a NEPA review must be conducted. Federal actions can include a
change to the ALP, the issuance of a Federal permit or approval, or the granting of Federal funds. For
example, a ground- mounted solar project would trigger an update to the ALP and therefore require
environmental review under NEPA. However, a determination issued by the FAA under an airspace
review is not considered a Federal action and alone does not trigger a NEPA review. Roof - mounted
projects must be reviewed by NEPA if (1) the airport receives Federal funding or (2) the roof is leased to
a private third -party. Solar PV projects previously reviewed under NEPA have received a Catex (CSP
facilities such as parabolic troughs and power towers may have different environmental issues as
determined under NEPA). After consulting with the Region or ADO about the project and environmental
issues, the sponsor will provide the FAA with environmental information to support a Catex or an
Environmental Assessment (EA). Past solar PV projects have received a Catex from the Region or ADO,
supported by background documentation on the purpose and need for the project and any potential
environmental impacts .24 The FAA will review the sponsor's documentation for the project and issue a
determination that the project qualifies for a Catex, or if not, requires an EA. As with all categorically
excluded actions, FAA environmental specialists must evaluate extraordinary circumstances to ensure that
the FAA complies with its responsibility to minimize environmental impacts to specially protected
resources.
Several solar projects constructed at airports in recent years have been formally reviewed by the FAA for
NEPA compliance. These projects include the two solar facilities at Denver International Airport, and
24 The FAA is considering the development of a new Categorical Exclusion ( Catex) for small solar energy projects.
42
FAA Solar Guide Chapter 3. Regulatory and Safety
facilities at Fresno and Bakersfield .2' Table 1 lists airports that have constructed solar projects and the
types of Airspace and NEPA reviews.
Table 1: Examples of FAA Regulatory Reviews for Existing Airport Solar Projects
Airport
Project Type
Airspace
NEPA
San Francisco
Roof
None
None
DIA— Pena
Ground
No Hazard
Catex
DIA — Fuel Farm
Ground
No Hazard
Catex
Fresno
Ground
No Hazard
Catex
Bakersfield
Ground
No Hazard
Catex
Albuquerque 21
Roof
None
None
Boston
Roof
None
None
San Jose
Roof
None
None
Sponsors for any solar projects proposed at an airport must submit a 7460 form under Part 77 and either
appropriate documentation to support a Catex or an environmental assessment depending on the size and
potential environmental impact of the project. In both cases, the FAA strongly urges proponents to work
with the FAA early in the development process to facilitate a comprehensive and effective review. Once
the appropriate NEPA documentation is provided, the FAA will either issue a Finding of No Significant
Impacts (FONSI) or require the preparation of an Environmental Impact Statement (EIS).
3.2.2 Examples of Potential Environmental Issues
Because solar energy systems do not release any elnissions or store any hazardous materials, potential
environmental damage is limited to impacts associated with land development. Even then, many projects
can be located on the roofs of existing structures that are already developed, thereby avoiding land
disturbance. Previously disturbed sites are also good candidates for solar installations because they will
25 Each sponsor applied for a Catex. under Order 1050.1E 310 "Categorical Exclusions For Facility Siting, Construction, and
Maintenance" and provided supplemental information on site specific environmental issues to support the Catex determination.
Solar projects constructed on rooftops at Albuquerque (Phase I), San Francisco and Boston did not submit a NEPA application to
the FAA because no federal action was anticipated. A Catex was approved for the ground- mounted solar projects by citing the
following categories ":
310n —Minor expansion of facilities including the addition of equipment on an existing facility where no additional land
is required, or when expansion is due to remodeling of space in current quarters or existing buildings. Additions may
include antennae, concrete pad and minor trenching for a cable.
310r— Purchase , lease, or acquisition of three acres or less of land with associated easements
and rights -of -way for new facilities. (ATO)
31 Oaa — Upgrading of building electrical systems or maintenance of existing systems, such as painting, replacement of
siding, roof rehabilitation, resurfacing or reconstruction of paved areas, and replacement of underground facilities.
" The first Project at Albuquerque was completed with no Federal money and therefore there was no Federal action. Phase two
of the project has received funding from the FAA and will be subject to NEPA review.
43
FAA Solar Guide Chapter 3. Regulatory and Safety
not produce an increased impact. In fact, one of the advantages of constructing solar at airports is that
often much of the on- airport open space has been previously disturbed or is actively managed in
accordance with formal vegetative and wildlife management plans to keep it from penetrating airspace or
becoming a wildlife habitat. Still, such areas may provide environmental benefits that are subject to
regulatory review (see FAA Order 5050.4). The following environmental impacts are among the areas
that should be considered during a NEPA review and that may require Federal, state, or local permits.
Wildlife Habitat / Endangered Species
Wildlife habitat on airports typically includes habitats for species that prefer a grassland environment.
While the airfield environment is managed to be free of natural groundcover, shrubs, trees, and water
bodies that provide structure for shelter, foraging, and reproduction of wildlife, it can attract a specific
group of animals. Species that had to be considered during siting and design of past projects include
burrowing owl, kit fox, and grassland birds. Some of these species may be listed for protection under
Federal or state endangered species laws. Should the airport decide to proceed with a project at a site
where wildlife habitat may be impacted, the sponsor will need to characterize the extent of the habitat,
demonstrate how the project will minimize impacts, and mitigate for any unavoidable damage.
Water Quality Impacts from Erosion and Sedimentation
Construction projects disturb vegetation and soil and make it available to erosion causes by rain events.
The footprint of land disturbance for solar projects is limited to posts that hold up the ground- mounted
panels. However, construction vehicles needed to bring the panels and other materials to the site and
install the equipment can cause temporary impacts on the land that must be managed to avoid erosion and
sedimentation. The potential environmental impacts of erosion will vary considerably by region
depending on the time necessary to re- vegetate and stabilize disturbed areas. As an example, two years
after construction of its Pena Boulevard Solar Project, Denver International continues to maintain erosion
control and actively re- vegetate lands disturbed by construction.
Wetlands Disturbance
Wetlands are protected by Federal and state environmental laws due to their broad benefits to wildlife and
water quality. Projects that disturb wetlands or are proposed near wetlands may require the issuance of a
wetland permit. The permit may require land stabilization to prevent against erosion and sedimentation.
It may also require an assessment of alternatives to avoid and minimize impacts, and measures to mitigate
unavoidable impacts. For Denver's Pena Boulevard Project, the developer connected two sections of the
project by drilling and installing a cable underneath a wetland to avoid a physical impact from traditional
trenching.
Hazardous Materials
Hazardous materials are regulated by Federal and state laws. Because solar panels do not employ
hazardous materials, the use of them does not trigger an environmental review. However, if a project is
proposing to disturb land to construct a solar facility, the applicant may need to test the soil prior to any
work to ensure that historic contamination is not released from the soil. Should preliminary testing
suggest that soils may be contaminated with a regulated waste, it may be wise to avoid construction in
that area for both environmental and economic reasons.
Historic /Archaeological
Federal activities must comply with the National Historic Preservation Act. Many states also have
historic preservation programs that may encompass additional areas. Solar projects proposed for the roofs
44
FAA Solar Guide Chapter 3. Regulatory and Safety
of historic airport buildings may require approval to ensure that the solar panels do not adversely impact
the historic value of the structure. Ground - mounted projects that disturb soils may need to conduct an
archaeological study to ensure that below - ground historic resources are not impacted.
3.3 Off - Airport
Solar projects constructed off - airport are proposed and managed by private developers and public
agencies. They include a wide variety of technologies (PV, solar thermal, and concentrated solar power)
and sizes (residential, commercial, and utility -scale or grid -fed). While projects proposed on- airport have
a direct link with FAA authority and agency NEPA responsibilities, the need for FAA airspace review is
less clear the farther away projects are from the airport fence. The FAA has broad authority for airspace
review and the evaluation of any solar project that could pose a potential hazard to air navigation.
The clearest trigger for FAA review is a physical penetration of airspace. It is well - established that
structures rising 200 feet or greater above the land surface must be reviewed by the FAA. Tall structures,
such as wind turbines, cell towers, and communication antennae customarily rise above 200 feet and
proponents know that an airspace review is required. The FAA will review the location of structures and,
depending on their proximity to existing airports, will either limit their height to remain out of flight paths
or condition their approval to day and night obstruction lighting. Concentrated solar power projects with
power towers may rise to a height of 200 feet or greater, triggering an airspace review. Many other solar
projects including parabolic trough and PV farms will not and therefore the need to file a notice with the
FAA may not be clear.
Currently, no defined thresholds for project size, type, or distance from the airport are available that
automatically trigger FAA airspace review. However, proximity to the airport and CSP technology are
two indicators of likely FAA interest in a solar project.
Some utility -scale solar projects have been sited on Federal lands subsequent to a bid to lease land from a
Federal agency such as the Bureau of Land Management (BLM). Due to their location, these projects are
subject to NEPA review with the land holder (e.g., BLM, Air Force) acting as the lead Federal agency
coordinating the NEPA review. For these projects, mechanisms including Federal register notices and
inter - agency communications should be sufficient to alert the FAA that the project is proposed. It would
then be incumbent upon the FAA to inform the applicant that it requires an airspace review.
How the FAA is notified about potential impacts to airspace, or how it hears about pending solar projects,
varies. However, it is the responsibility of local governments, solar developers, and other stakeholders in
the vicinity of an airport to check with the airport sponsor and the FAA to ensure there are no potential
safety or navigational problems with a proposed solar facility, especially if it is a large facility. Likewise,
sponsors must be aware of nearby off - airport activities that could have a negative effect on the safe and
efficient operation of the airport. Sponsors should notify the FAA when such activities are proposed and
FAA needs to participate in public meetings or permitting processes.
45
FAA Solar Guide
Chapter 3. Regulatory and Safety
Case Study #3 — Evaluating Airspace Issues
Metropolitan Oakland International Airport — California
Oakland International's General Aviation Airport is host to a 756 kW ground- mounted system owned and
operated by a private company, which sells power back to the Port of Oakland at a discount. The project
consists of 4,000 fixed solar panels.
While the private developer was responsible as project applicant to file a 7460 Notice of Construction or
Alteration with the FAA for airspace review, it was critical that airport personnel play an active role in
assessing siting issues to ensure that the project would not produce a negative impact on airspace or
aviation activities. The airport is knowledgeable about FAA airport design standards and flight
operations, and works on a daily basis with FAA personnel in the Air Traffic Control Tower and ADO.
The three issues that Oakland evaluated during project siting were airspace penetration, radar
interference, and glare. Because it was exploring a location along a service road near the GA runway,
consideration of the imaginary surface extending out from the edge of Runway 6/27 was a critical
consideration even with low profile panels. As a result, the panels were located approximately 400 feet
from the runway avoiding any penetration of the imaginary surface of airspace. Second, the siting had to
consider the location of the panels relative to Navaids. A radar system is located to the west of the
proposed site. After consultation with the FAA, it was decided to preserve a 500 -foot buffer from the
radar to protect against any interference. Third, the airport discussed the potential for glare to impact the
air traffic control tower. The FAA determined that, based on the available information, that glare would
not cause a negative impact. However, to ensure that it could address any unforeseen problem, the FAA
indicated that it would preserve the right to remove the project if a significant impact were to occur.
The project has been operational since November 2007 and there have been no reports of airspace impacts
from radar or glare on the air traffic control tower or on pilots. One of the keys to a smooth approval
process was close coordination between the airport, the solar developer, and the FAA from the earliest
phases of the project.
46
FAA Solar Guide Chapter 4. Airport Solar Economics
4 AIRPORT SOLAR ECONOMICS: UNDERSTANDING THE
FINANCIAL INCENTIVES THAT MAKE SOLAR COST-
EFFECTIVE
Even with the free power of the sun, it has been a challenge for solar energy to compete with conventional
energy sources. Two factors that make solar electricity more costly are the efficiency of solar panels and
the cost of panel materials. Advances in technology have improved both, yet solar electricity can still
cost about three to four times more than its fossil fuel competitors. Other related factors influencing solar
economics are the intensity of the site's solar resource (see Section 1.5) and site design, although the cost
to install a solar project is relatively uniform regardless of location. The viability of solar is also
determined by the existing cost of electricity and available financial incentives. This chapter reviews
electricity cost considerations and financial factors that can help airports determine project cost -
effectiveness and identify the best financing option(s).
For those seeking short-term returns, solar energy is probably not the right investment because equipment
costs are high and annual revenues (or cost savings) are low. The solar option is more attractive for those
looking at long -term financial benefits. In the future, solar pays back its costs and then provides "free"
electricity with little operations and maintenance expense. Solar also represents a form of insurance
which guarantees a long -term, predictable electricity price and avoids potential fluctuations in
conventional fossil fuel prices that are pinned to commodity prices influenced by supply and availability.
These factors make solar a good investment for long -term land uses, like airports. A checklist is provided
at the end of this chapter for doing a simple screening assessment of feasibility and solar potential.
4.1 Cost of Electricity
When existing electricity prices are low, it is difficult for solar to compete, but when existing electricity
prices are high, solar may be a viable option. However, the analysis is complicated by the variability of
conventional electricity costs over time.
4.1.1 Conventional Electricity
While we don't know exactly what energy prices will be tomorrow, we do know where prices have been
historically, and where they are today. Based on national averages, conventional electricity prices have
increased by 38% in the past fifteen years. 27
Prices also vary widely among individual states and regions of the country. Figure 19 provides
information on regional electricity prices in 2009. In that year, the northeast had the highest electricity
prices while Texas had the lowest. Updated monthly data for April 2010, shown in Table 1, indicates
that, even within the northeast, conventional electricity prices varied by as much as 35% from one New
England state to another. A simple conclusion might be that solar projects will be most cost - competitive
in Connecticut, not in Texas. However, the present -day cost of electricity is only one of three
fundamental project factors that must be considered along with the solar resource and financial incentives.
n Electricity prices in creased from 6.86 cents per kilowatt-hour (kWh) in 1996 to 9.5 cents per kWh in 2010.
During that same period, prices peaked at 10.65 cents per kWh in July 2008. U.S. Energy Information
Administration. httv: / /www.eia.doe.gov/
47
FAA Solar Guide
Chapter 4. Airport Solar Economics
Determining the cost effectiveness of solar electricity primarily involves three local factors:
1) Existing cost of electricity —where electricity prices are relatively high, solar is more economical
2) Strength of solar resource — the more sun, the more solar electricity produced, and the more revenue
3) State government incentives —state tax rebates orRPSs can make the difference
Figure 19: Average On -Peak Spot Electric Prices 2009 from Regional Transmission Organizations
c
nvctayc vtrrcan aNvt
Electric Prices 2009 (SIMWh)
ERCOT RFC
FRCC SERC `, PxMproie
tARO SPP I P. (S h)
NPCC WECC
littp://www.ferc,gov/market-oversighUmkt-electric/overview.asp
48
FAA Solar Guide Chapter 4. Airport Solar Economics
The top 10 states in terms of the cost of electricity (all sectors) for April 2010 are listed in Table 2 below.
Table 2: Highest Electricity Prices in April 2010
State
Price (cents per kWh)
Hawaii
24.23
Connecticut
17.55
New York
15.95
Alaska
15.13
Massachusetts
14.84
New Hampshire
14.59
Rhode Island
14.10
New Jersey
13.69
District of Columbia
13.42
Vermont
13.04
Predicting future prices for conventional electricity presents other uncertainties. Recent price trends offer
some guide but energy forecasters have a difficult time predicting economic cycles, fossil fuel shortages,
or international political instability, all of which can have a major impact on the availability of fossil fuels
and the related price of electricity.
4.1.2 Solar Electricity
Unlike conventional electricity, the future cost of electricity from a solar facility is highly predictable
throughout the life of the project. While there will be small variations annually in the amount of sun
available for electricity production, other factors that influence the price of solar are known thus making
the margin of error small for predicting future electricity prices from solar.
The National Renewable Energy Laboratory has developed a solar energy calculator known as PV Watts
to help project developers predict expected solar production from a particular project site.'s Of the total
cost of a solar project over a 25 -year
Solar electricity has a high initial investment, but few costs period, for example, 99% of costs can
during operations and maintenance. The key to solar be incurred in the initial investment .29
financing is to find a long -term customerfor the electricity These costs include securing property
and to spread the payback of the initial investment over a rights, designing and permitting the
long -term contract. system, materials, construction, and
commissioning.
Future costs are limited to operations and maintenance, equipment replacement, and decommissioning.
Annual operating costs are about 0.02% of the total project cost. The only major expense during the
operational life occurs when the inverter fails, which is commonly planned for in the business model in
year 11. (The inverter converts the electricity from DC to AC — see Section 1.2.) Panel failure and
replacement is relatively uncommon, however the business model will factor in some panel replacements
as an anticipated cost.
28 httu: / /www.nvwatts.org/
29 httu: / /www.i3yresources .com/en /economics.pht)
49
FAA Solar Guide Chapter 4. Airport Solar Economics
Long -term trends in the installed cost of solar PV have been decreasing, making solar electricity more
cost competitive. The price of solar has decreased by about 4% per year and is expected to continue to
decrease as a result of decreasing material costs and an increase in manufacturing efficiency.30
Electricity produced by solar panels (and therefore revenue generated) annually for a project's 25 -year
life can also be calculated accurately. Therefore, the financial key to a solar energy system is finding a
means for spreading the high initial project costs over the life of the project.
4.1.3 The Power Purchase Agreement
A Power Purchase Agreement (PPA) is a contract for electricity between a buyer and a seller. A PPA is a
key milestone in any renewable energy project because the PPA locks in a long -term revenue source for
the proposed power generation.
A PPA may be signed between a producer and a consumer who are physically connected, or it might be
executed between distant entities (requiring certification and issuance of RECs). In either case, with the
PPA, the developer can approach a financial institution (or private investors) that will lend money to the
project with assurances that they will be paid back over time from the revenues generated from electricity
production.
PPAs are generally executed between a private developer who sells the electricity and a consumer, who
could be public or private. Airports, which are public entities that may own and generate electricity,
typically do not execute PPAs because they are also the customer (though there may be a need for certain
interagency agreements as in the case of San Francisco's agreement with a municipal utility). Utilities, on
the other hand, may be buyers of renewable energy through a PPA in order to satisfy state - mandated
renewable energy purchasing requirements under an RPS program.
Because airports are a large and reliable long -term electricity consumer, PPAs have been a successful tool
used by airports to develop renewable energy projects. Airports are often constrained from raising fees
on its customers to finance investments, particularly when the improvements are not fundamental
components of airport infrastructure. In addition, airports are not in the energy business and are more
suitable to serving as a host and long -term customer for the electricity as opposed to a developer of power
generation. By executing a PPA, the airport can avoid costs associated with project investment while
locking in a long -term price for the electricity source and budget for those utility costs, as appropriate.
30 httu:// www .solarbuzz.com/solarprices.htm
50
FAA Solar Guide Chapter 4. Airport Solar Economics
In 2007, DIA was approached by a private solar developer about constructing a solar project on
airport property. The project concept made sense to the private developer because the airport had
good solar exposure for creating electricity, lots of space to site a project, and a long -term demand for
electricity. DIA was interested because the project could provide them with electricity at a rate
cheaper that it pays today and at a fixed price for 15 years. The developer and airport memorialized
their agreement through a PPA. But in order for the parties to agree to a price that achieved both the
profit objectives of the private developer and the price reduction objectives of DIA, funding was
required from the local utility, Xcel. Why would the Xcel contribute to the project when it pays lower
prices for electricity produced by fossil fuels? Because the Colorado legislature passed a law
requiring utilities to purchase a speck amount of renewable energy generated electricity annually, or
pay a fine larger than what it would payfor the "green" electricity. So Xcel issued an RFP requesting
bids to supply renewable energy generated electricity. The private developer offered to sell electricity
at a competitive rate when compared to other renewable energy alternatives. When Xcel selected the
project at DIA, it agreed to pay for the price premium of the renewables (in the form of'RECs),
completing the financing and allowing all parties to achieve their financial objectives. The standard
ground lease and PPA used by DIA are provided in Appendix C and D, respectively.
4.2 Financial Incentive Programs to Lower the Cost of Solar
Governments have established a number of financial programs with the aim of incentivizing the
production of solar electricity. Those incentives take the form of tax credits, grants, rebates, loans, and
production payments. Public policies such as Renewable Portfolio Standards, Feed -in Tariffs, and net
metering may require the purchase of solar power. The DOE database of state incentives for renewables
and efficiency (DSIRE)31 provides a comprehensive and updated listing and description of Federal, state,
and local programs. The Solar Alliance Four Pillars Report describes how incentives, interconnection
policies, net metering policies, and utility rate and revenue policies represent the four most important
components of a robust state solar market. 32 Direct cash incentives like rebates and production payments
have been central to sparking solar investment while interconnection and net metering policies that
restrict solar expansion act to dampen solar development. Installed capacity of solar projects is the best
measure of state incentive success. Table 3 lists the top ten States in terms to solar installations in 2009.
31 DS1RE database is managed by the North Carolina Solar Center and Interstate Renewable Energy Council. 2010.
32 http:/ /www.solaralliance.orp,/downloads /four pillars.pdf
51
FAA Solar Guide Chapter 4. Airport Solar Economics
Table 3: Top Ten States in Solar Installations for 200933
State
MWpc
California
212.1
New Jersey
57.3
Florida
35.7
Colorado
23.4
Arizona
21.1
Hawaii
12.7
New York
12.1
Massachusetts
9.5
Connecticut
8.7
North Carolina
7.8
These data represent all solar installations (e.g., residential, commercial) and do not directly translate into
the states with the best incentives for airport solar projects. For example, Florida's 2009 installed
capacity is weighted by the 25 MW solar farm constructed by Florida Power and Light in DeSoto County
as well as by the localized incentives offered by the municipal utility in City of Gainesville. Otherwise,
Florida at this time does not offer highly favorable incentives for commercial -scale projects at airports.
The following section summarizes policies and programs available for airport solar projects
4.2.1 Renewable Portfolio Standards
An RPS, also referred to more recently as a Renewable Electricity Standard (RES), is a government law
or policy that requires purchasing of renewable energy. Iowa was the first state to adopt an RPS in 1991,
followed by three other states in 1997. As of June 2010, 36 states and the District of Columbia had
adopted an RPS or renewable purchasing goal (see Figure 20). Congress is also considering proposals to
amend national energy policy to include a Federal RES mandate for renewable energy purchasing.
By enacting an RPS and requiring that some percentage of the electricity sold in a state come from a
renewable source, states have expanded the market for renewable energy. Under the program, electricity
purchasers, typically the electric utilities, must now find renewable energy generators and purchase their
electricity from such generators or be subject to penalty (referred to as a "Compliance Payment ") under
state law. Because the compliance payment is set at a price higher than the renewable price, purchasers
are incentivized to find renewable energy to purchase. Should the purchase of renewable energy result in
an increase in overall electricity costs to the purchaser, it will adjust its customers' rates accordingly to
pay for the shortfall.
33 http: / /irecusa.ore /wv- content /uploads /2010 /07 /lREC- Solar- Market - Trends -Report-2010 7 -27 -10 webl.pdf
52
FAA Solar Guide Chapter 4. Airport Solar Economics
Figure 20: Renewable Portfolio Standards in the 1, S.
"'O
MT No
15%.1015 N' .2111}
OR
75% M25
NV
25 %2025 UT
CA 20°m. X25 CO
7A:. 2020 l0% 2020
AZ NM
t5% -1025 M -A"
State Renewable Potltorw StanQrd
Slate Renewable PoltloNo Goal
so
lw° 2015
25%
NS Mo
20 %2020 15%2011
OH
15 °•e 2015
TX
M"
NI
X015.2050
PA
15% -2021 NJ
ON
25%2525
WV VA`
..i5 %- 252515 %. N25
NC
% M21
Renewable Portfolio Standards
www.dsireusa.org / June 2010
Q NH 23.6% -202
5
DE 20%. 2020 NJ 25% -201
VT 20% -2017
http:// www. dsireusa. org/ suminarymaps /index.cfin ?ee= 1 &RE =1 [click on renewable portfolio standards]
4.2.2 Renewable Energy Credits
RI
CT
DE
MD
DC
The most complex aspect of managing the RPS program is accounting for buying and selling of the
renewable energy. RECs have become the common "currency" for verifying that renewable energy has
been purchased and RECs are typically part of any renewable energy transaction accomplished under an
RPS /RES program. RECs are like a stock certificate issued by an independent organization that certifies
that a generator meets the definition of "renewable" and is generating renewable energy. The purchaser
(again, oftentimes the utility) acquires the RECs as part of its transaction for purchasing the renewable
energy. The purchaser then holds the RECs as verification of its purchase and presents them to state
regulators as necessary.
4.2.3 Tax Credits
Federal, state, and local governments which levy taxes to pay for government services may seek to
promote private investment in solar development by offering tax relief. The offer is to decrease the
amount of taxes owed based on the amount invested in renewable energy manufacturing or development
projects. Because the incentive is associated with a reduction in tax payments, only private (taxpaying)
entities can take advantage of this opportunity.
53
FAA Solar Guide
f IRS
Department of the Treasury
Internal Revenue Service
Chapter 4. Airport Solar Economics
There are two primary programs that have been created at the
Federal level through the Internal Revenue Service (IRS) to
apply renewable energy investments to a reduction in tax
payments: (1) investment or production tax credit, and (2)
accelerated depreciation.
The investment tax credit (ITC) and production tax credit
(PTC) both provide tax relief to a renewable energy developer
in an amount depending on the program available, which for
solar projects has been the ITC. Under the ITC, the IRS
approves a tax credit equal to 30% of the total project cost
amount invested to develop the project. The tax credit can be
claimed when filing Federal income taxes subsequent to the project going into service. The value of the
tax credit may be sold to other private entities, which have a tax interest and see an economic advantage
to partnering on the project. With the tax credit, the private entity never receives cash to help pay for a
project, but rather receives a credit on payments due, thereby producing a net positive on the company's
balance sheet.
Another mechanism used to reduce project costs through tax relief is referred to as accelerated
depreciation. Future taxes must be paid on the value of installed equipment including investments in
renewable energy projects. As the equipment gets older, its value depreciates and tax payments based on
value will also depreciate. The IRS program called Modified Accelerated Cost Relief System (MACRS)
establishes a five -year period after which the equipment depreciation cycle is complete and taxes on value
no longer need to be paid. All of these measures are meant to provide tax relief to renewable energy
projects, including solar, to decrease expenses during operation and thereby produce electricity at a lower
cost.
Some states have enacted tax legislation where revenue departments offer similar tax credit programs on
state tax liability. Oregon, for example, offers businesses a 50% tax credit up to a maximum of $10
million. Developers must submit an application for preliminary certification where minimum technical
criteria are reviewed and approved prior to commencing construction.
4.2.4 Government Grants and Rebates
Tax incentives have been instrumental to catalyzing renewable energy projects. However, if given the
choice, energy developers would prefer to receive a grant or rebate payable in cash because cash is more
fungible than credit. Grants and rebates are less popular from a public policy perspective due to the need
for enhanced oversight, but have been used to speed the pace of renewable energy development projects.
Cash has also been provided to projects in the form of rebates. Rebates can be inter - changeable with
grants and may differ only in when they are approved and issued. In both cases, the generator will apply
for approval of the funding application in advance. A rebate is typically paid out after the project is
constructed and may be based on the unit of electricity produced. A grant may be paid before or after
construction.
54
FAA Solar Guide
Chapter 4. Airport Solar Economics
The Massachusetts Port Authority (Massport), which operates Boston Logan International Airport, is
using both public and private incentives to decrease the cost of electricity to be produced from a solar
array on the roof of Terminal A. Massport initially earmarked Federal stimulus money awarded to the
State's Energy Program and allocated to Massport to pay down the upfront capital investment of a solar
project on Terminal A. Then it solicited public bids from solar companies interested in owning and
operating the facility. Following bid selection, Massport executed a PPA with the private developer to
buy the electricity produced by the system. The private developer was able to provide a cost - effective bid
for electricity price due to the reduced capital investment from a Federal stimulus grant and its ability to
monetize the tax credits. This will be Logan's second solar project. The first is shown in Figure 21.
Figure 21: Solar Trees on Parking Garage at Boston's Logan Airport
4.2.5 Feed -In Tariff
Feed -in Tariff (FiT) programs have been popular in Europe but less so in the United States until recently
because a FiT fixes the price of the electricity produced rather than allowing markets to establish the price
(with or without subsidies). Additional components of the FiT include guaranteed access to interconnect
with the utility grid and a long -tern contract (i.e., PPA) with the utility. The FiT program requires
utilities to buy renewable energy from all eligible participants, and establishes different prices for each
technology based on expected market costs. These programs encourage the development of a diversity of
energy projects because the cost of development is amortized.
55
FAA Solar Guide Chapter 4. Airport Solar Economics
Germany enacted a FiT in 2000 and rapidly became the world leader in wind and solar manufacturing and
development. Today, Germany remains the leader in solar but dropped to second in wind behind the U.S.
after 200934. California was the first U.S. state to enact a FiT in 2008.
4.2.6 Bonds
Bonds allow government to raise money through borrowing. There are some examples of state and local
governments establishing bond authority for renewable energy projects. The government raises the
money to borrow by selling bonds with the intention of using money saved from the project in the long-
term to pay back bond buyers plus interest without additional tax or fee hikes.
Clean Renewable Energy Bonds (CREBs) were authorized by the Energy Tax Incentive Act of 2005. The
legislation permits state and local governments, cooperative electric companies, Native American tribal
governments, and public power providers to issue CREBs to finance clean energy projects. Under
CREBs, the bond issuer (e.g., local government) issues the bond and raises money. After the project is
constructed, the bond is repaid overtime with interest; however, the Federal government pays the interest
portion in the form of a tax credit. This allows the issuer to raise the money interest -free.
Funding for CREBs is authorized annually. While funding amounts have been notable, the reduction in
tax paying businesses during the economic recession has left the program underutilized over the past two
years, though a new provision in March 2010 allowed for a direct subsidy payment in lieu of the tax
credit. CREBs can only be utilized for projects owned by the borrowing entity (i.e., are not for privately -
owned, third party projects).
The County of San Jose 1.2 MW rooftop solar installation at Mineta San Jose International Airport
(see Figure 22) was built under the Terminal Area Improvement Program through project bonds. The
rental car companies are the County's partners on the project and they needed to be comfortable with
the business case for the project on a long -term Return on Investment (ROI) basis. The economics of
the project greatly benefitted from an approximately $2 million solar incentive grant from the State of
California through the California Solar Initiative. Without the grant, the 20 year ROI would not have
been positive. Rental car companies and their customers are paying. for 90% of the structure, as 90%
is dedicated for rental car operations. The other 10% is for public parking and is paid through the
airport. The companies pay via their long -term lease agreements with the airport, which is a
-residual" agreement meaning the cost and debt service for the structure, including solar, along with
operating costs, are secured through their lease payments. Customers also pay a "customer facility
charge" of$10 per transaction (a standard amount among California airports) that is also part of our
revenue stream that secures the rental car center costs. Thus, having a reasonable ROI on the solar
installation was essential. The overall capital cost of the rental car center (both for public parking and
rental cars, and including solar) is approximately $270 million.
34 REN21, (2009). "Renewables Global Status Report: 2009 Update," Paris: REN21 Secretariat. Available at:
http:// www. anep .fr /shared/docs /l)ublications/P,E GSR 2009 Update.pdf
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FAA Solar Guide
Chapter 4. Airport Solar Economics
Figure 22: Solar on New Rental Car Parking Facility at Mineta San Jose Airport
4.2.7 Net Metering
Net metering is a form of performance incentive whereby the utility pays an energy generator for
electricity that is exported to the grid. Oftentimes, there is a requirement that some percentage of the
electricity generated be consumed on -site (by a factory, hospital, school) with the excess exported. The
utility then either purchases the exported electricity or credits the generator's electricity account. When
the electricity is sent out to the grid, this is often referred to as "spinning the meter backwards" meaning
that the amount of electricity consumed on -site (and measured by the electrical meter) decreases (and the
amount paid for electricity also decreases).
Federal law requires utilities to purchase back exported electricity; however, the specific payments
associated with net metering programs vary among states. Factors that are considered in determining if
net metering is a cost - effective solution include: project caps for individual sites and annual allotments
within a utility's service area; the price at which the utility must compensate the generator (wholesale or
retail price); and whether off -site bills can be credited by the exported energy (e.g., if municipality is the
generator, they can credit other electricity consumption accounts) .35 Because net metering only helps
electricity exporters, many large and medium size airports cannot benefit because they will always use
more electricity on -site than is generated by a solar facility. However, small general aviation airports
might be able to capitalize on net metering programs.
3s Federal law and FAA policy regarding airport revenues and financially self - sustaining business practices for
airport sponsors require that airport operators preserve the value of airport assets. Airport sponsors may grant the
right to produce electricity on the airport to other parties that construct commercial improvements. These
agreements and net metering should align with the responsibility to pay for electricity consumed in an autonomous
relationship with the utility or electricity broker. Airport operators can provide lighting and other electrical utilities
in- common, under lease and use agreements, or to public areas of the airport not subject to lease or use agreements.
In this case, the airport operator must retain the revenue of electricity it produces. Also, generally speaking, airport
operators should retain the financial benefits of electricity generated on airport property for airport purposes and not
allow those financial benefits to be used for the non - airport interests of the broader municipal sponsor.
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FAA Solar Guide Chapter 4. Airport Solar Economics
4.3 Ownership Models
Public policy incentives provide different opportunities for different owners of solar energy projects.
Identifying the appropriate ownership model will vary depending on a combination of economic and
public policy factors specific to the project site.
The airport has two primary options when considering solar project development. The first is a solar
facility owned by the airport. The second is a facility owned by a private company - the model most
widely used by airports today. Regardless of who owns the solar facility, the same groups will be
involved in project development with the airport in the lead as property owner. Which ownership model
the airport selects will determine which financial incentives can be utilized and who owns the
environmental attributes of the project. An early -stage determination of ownership should consider the
following:
Are tax incentives a significant portion of how the project will be paid for? Because there is a
30% tax credit available for all solar projects through the IRS, the answer to this question is
"yes." Therefore all airport solar projects should consider the financial benefits of partnering
with a private company that can take advantage of the tax credits and pass those savings on to the
airport in the form of cheaper electricity. The counterbalance to this will be if government
funding (either from a municipal utility or from state or Federal energy programs) produces
greater benefits than the tax incentives. Bonds might also be a consideration.
Is ownership of the environmental attributes important to the airport or city? Solar power has
value beyond just electricity because it is produced from clean, renewable sources. That value
can be realized either through a voluntary market (driven by customer demand for green power)
or a mandatory market (driven by a state RPS). In either case, the airport or municipality may
wish to own the value of the renewable energy (RECs). This benefit should be considered in the
ownership model because the owner of the facility owns the RECs.
This section describes the two primary ownership models and the advantages and disadvantages of each
option. Both models have proven to be successful and there are examples of airports that have done each.
4.3.1 Private Ownership — Airport as Host
The private ownership model offers the best approach for airports to develop solar especially in states
with attractive tax credits. In the private ownership model, the airport leases property to a private
developer granting them the right to construct, own, and operate a solar facility. The basic contract is a
land (or roof) lease with a $ per unit rental fee, annual escalators, and term of lease. To make the project
worthwhile, the developer will likely seek a long -term lease of 10 -30 years. The land lease agreement
will often include options for the airport to buy the facility back from the developer and terms and
conditions of such an option. Figure 23 illustrates the fundamental transactions of this model.
The developer owns the solar facility, the electricity it produces, and the green benefits associated with it.
Typically, the airport will also execute a PPA with the developer to purchase the electricity produced by
the solar facility for a specific price over a long -term period. It is possible that the developer could
execute a PPA with another entity (other department of government, nearby business), however, it is
easier to have one contract with the airport for both land lease authority and electricity purchase. The
utility may acquire the RECs if it has a mandate to purchase renewable energy under a state RPS
program. At a minimum, it will review the technical specifications of the electrical interconnection and
issue an interconnection permit.
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FAA Solar Guide
Chapter 4. Airport Solar Economics
The developer permits, constructs, owns, operates, and maintains the facility for the life of the project.
Because profitability is entirely dependent upon the efficient operation of the facility, the developer is
sure to take good care of their investment.
Advantages: The private ownership model is fundamentally a simpler proposition for the airport if not
more economical in the long -term. It requires no capital investment from the airport. It requires no
specialized expertise on solar energy from the airport. The sponsor is seen as being proactive on
environmental and energy issues and responding to the concerns of the community without taking on the
risks associated with owning and operating the solar facility.
Disadvantages: The primary disadvantage to the private ownership model is that the sponsor releases
control of the project and the associated project. A secondary drawback is that the airport will not
achieve a payback point and begin receiving free electricity. Instead, the sponsor is locked into paying
for the electricity (assuming a lower than market rate) for the life of the contract unless it exercises an
option.
Funding: Engaging a private partner to develop a solar project allows the project to take advantage of the
tax credits with those savings being passed on to the airport through a lower cost in the PPA. The tax
credits are a more certain subsidy than competing for government grants. The Federal tax credit alone,
however, has not been enough to attract private investment which has focused on states that provide
supplementary tax credits. It is possible that projects can be structured with both a Federal grant to pay
down the cost of the initial capital investment, and by executing a lease with a private partner who can
capitalize on the tax credits.
Figure 23: Private or Third -Party Owned Business Model
Solar System Owner
F _AA
Private Developer
Airport
Power Ptrchaw Agreement
A&
contract to Purchase RECa
.Q
utility
Permd Authority
Denver
Fresno
Oakland
Bakersfield
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FAA Solar Guide Chapter 4. Airport Solar Economics
4.3.2 Public Ownership — Airport as Owner
In the public ownership scenario, the airport owns the solar facility and utilizes the electricity and
associated "green" benefits on -site. The sponsor contracts with a design -build firm to construct and
commission the project. It executes a separate contract for operations and maintenance. The utility's
primary role is to conduct a technical review of the facility to ensure its compatibility with the electric
grid, and issue an interconnection permit approving the project. It is possible that the utility could also
purchase the renewable energy credits from the sponsor to satisfy RPS requirements which will also
further reduce the cost of the electricity produced. Electricity generated by the project is used by the
airport to offset future purchases from the grid. The project pay -back period is reached when the savings
from electricity that otherwise would have been purchased from the grid equals the cost of the project
investment. Figure 24 displays a more simple bilateral business relationship of the public model.
Advantages: As owner of the solar project, the sponsor provides no rights to its property to a private
energy company. Assuming all factors are equal, the cost of the project is less over the life of the project
(e.g., 25 years) than private ownership where long -term airport electricity payments also pay for the
private company's return on investment. This leads to a point in the future where the solar facility is
entirely paid off and is providing free electricity to the airport for the cost of maintenance.
Disadvantages: Owning a solar project could also mean owning any responsibilities associated with
project management, working with contractors, and overseeing performance guarantees and warranties.
While these issues are no different (or riskier) than any other construction project on airport land, the
technical issues associated with solar energy development may present some challenges beyond those
associated with typical building systems and airport support structure. While public ownership results in
a less costly project over the project life, it also requires funding the capital investment.
Figure 24: Airport Owned Business Model
Solar System Owner $ Swigs
-- - - - - - - - - J&-
- - - - - - - - - -- �y
Aff J
- .. .... ..- ..- ..- ..- ..- ..... -.. -' -.. �..- ..- ..- ..- ..- ..- .. -..y
Airport utility
Permit Authority
Albuquerque
San Francisco (municipal utility owned)
IR
FAA Solar Guide Chapter 4. Airport Solar Economics
Funding: The subsidies for solar projects and other renewables have been weighted towards tax credits
that spur private investment. Because airports as non - taxpaying entities are not eligible for the tax credits,
private developers have been more successful in proposing cost - effective solar projects than public
entities. However, those opportunities have been most competitive in States that offer their own tax credit
programs in addition to the Federal investment tax credit (ITC). State variations in public policy have
created regional imbalances where solar projects are concentrated in certain States.
Ownership structure for existing airport solar projects is summarized in Table 4.
Table 4: Examples of Ownership Structure for Existing Airport Solar Projects
No Federal funds were directed to the airports for any of these projects.
61
Business
Owner/
Airport
Electricity Purchase
RECs
Model
Operator
Denver #1
Private
Renewable
PPA — Airport purchase
Developer sells
Third Party
Ventures
from owner
to Utility
Denver #2
Private
Oak Leaf Partners
PPA —Airport purchase
Developer sells
Third Party
from owner
to Utility
City of
No purchase
Albuquerque
Airport Owned
Albuquerque,
— direct use on airport;
Owned by City
Aviation Dept
offsets grid
Fresno
Private
Solar Power
PPA —Airport purchase
Developer sells
Third Party
Partners
from owner
to open market
San Francisco
Public Utility
SF Public Utility
Airport purchases at set
Owned by City
Owned
commercial retail rate
Oakland
Private
Sun Edison
PPA — Airport purchase
Developer sells
Third Party
from owner
to open market
Bakersfield
Private
Regenesis
PPA —Airport purchase
Developer sells
Third Party
from owner
to open market
No Federal funds were directed to the airports for any of these projects.
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Chapter 4. Airport Solar Economics
The City of San Francisco has ambitious greenhouse gas reduction goals and has appropriated
resources to achieve those goals. As part of this program, the City has been identifying municipal
buildings to be retrofitted with solar PP. The San Francisco Public Utility Company (PUC)
approached the airport about hosting a solar facility as part of this program and in 2007 the PUC
funded the construction of a 450 kW solar PV system on the roof of Terminal 3 at San Francisco
International Airport. Under the contractual arrangement, the airport buys the electricity that is
produced by the solar panels at the typical commercial electricity rate so that there is no cost impact of
the solar on the airport budget. The project is shown as Figure 25.
Figure 25: Rooftop Solar Project on San Francisco's Terminal 3
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FAA Solar Guide Chapter 4. Airport Solar Economics
Case Study #4 — Partnering with a Private Developer
Meadows Field — Bakersfield, California
Meadows Field in Bakersfield, California is host to a 744 kW AC ground- mounted solar generation
system owned and operated under a lease contract with a private developer. The project consists of 4,704
185 -kW solar panels on a single axis tracking system.
The developer and Kern
County, which operates the
airport, signed a PPA under
which the county agrees to
purchase all of the electricity
produced by the solar facility
at a pre - determined price over
a 20 year contract period.
The panels produce enough
electricity to serve
approximately 75% of the
airports annual average
electricity load. However,
because the electricity use of
the airport is not always in-
sync with the electricity
output of the solar facility, the
airport both receives
electricity from the electric grid (e.g., in the evening), and exports electricity (during maximum output).
In the middle of the afternoon when exporting occurs, the airport is selling electricity back to the utility
company under a net metering agreement. This is also referred to as "spinning the electric meter
backwards." This is a good time for the airport to be paid for electricity because it is valued at peak rates
when demand for electricity on the overall grid is high. Conversely, when the airport is purchasing
electricity from the grid, it is during off -peak hours when electricity rates are lower.
The benefits to the airport are a 20 -year fixed price for electricity, which when compared to long -term
averages in market rate electricity, will amount to a 16% savings in electricity payments; a lease payment
from the developer over the 20 year contract of $0.01 /s.f /year for the 6 acre project area; and half of the
value of the RECs produced by the project. RECs will soon be sold by renewable energy producers to
others who want to offset carbon emission taxes. Renewable Energy Certificates, which are publicly
traded environmental commodities, are not monetized yet. Once a market price has been established, the
RECs, which are split 50150 between the sponsor and developer, should be worth between $0.01 to
$0.08 /kWh of energy produced over the life of the system. A 50% share at $0.01 /kWh should be worth
around $150,000 annually.
The private developer can take advantage of accelerated depreciation and investment tax credits and split
those savings with the airport as part of the PPA electricity price. By securing a long -term customer for
its electricity, the developer can operate a profitable solar project.
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FAA Solar Guide Chapter 4. Airport Solar Economics
Table 5: Feasibility Checklist for Airport Sponsors
Issue
Consideration
Yes or No
Initial Screening
Solar Resource
Is there enough solar resource? (See Figure 9)
Are there extreme weather events or conditions that should be
Extreme Weather
considered that might increase installation costs?
Electricity Demand
Can the electrical output be used on- airport to enhance economics?
Is there a combination of robust state incentives and high existing
State Incentives /Electricity Price
electricity paces that will make solar cost- competitive?
Are there space constraints that will limit project size and impact
Space Constraints
economics?
Site Selection
Does the airport have non- aeronautical airfield land available for
Land vs. Building
solar?
Competing Uses
Has a fair market value been determined?
Are ALP changes needed and have they been approved by the
ALP Designation
FAA?
Has the Form 7460 been filed and has a glare analysis been
Glare
reviewed by the FAA?
Environmental
Is the project located on undisturbed land requiring consultation
with Federal and state environmental agencies?
Proximity to Electrical Load
Can the project be sited close to existing electrical meters to
minimize the costs associated with interconnecting cables?
Financin
Airport Revenue Retention
Are project revenues being kept for aviation uses?
Tax Incentives
Are there enough state incentives to benefit the project cost?
Grants/Rebates
Are there any grunts or rebates available?
Loans /Bonds
Are loans and bonds an option and are the rates beneficial?
Production Payments (RECs)
Is there a state RPS?
Do the financial instruments available clearly favor private or
Private or Public
public ownership?
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FAA Solar Guide Chapter 5. Federal Role in Solar Development
5 THE FEDERAL ROLE IN AIRPORT SOLAR DEVELOPMENT
The Federal government encourages, through a variety of policies and programs, the development of
technologies that take advantage of the clean abundant energy of the sun and provide a secure and reliable
source of domestic energy production. The benefits of solar energy extend to important national goals of
greater energy independence, clean air, and the control of greenhouse gases affecting climate change that
ultimately affect the quality of life for all citizens.
Federal assistance for solar energy is provided through several means, including tax credits (see Chapter
3), research and demonstration programs, funding initiatives, technical assistance, and public information
services. The lead Federal agency in the solar arena is the U.S. Department of Energy (DOE). The DOE
directs national energy policy and balances Federal priorities for energy development and efficiency
including the management of solar energy programs.
DOE programs for solar energy are located under the Assistant
Secretary for Energy Efficiency and Renewable Energy (SERE). The
DOE State Energy Program (SEP) provides grants and technical
assistance to states for renewable energy and sustainability projects.
The SEP Program is the only program in EERE that provides substantial
outreach and funding for local solar projects. The Solar Energy
Technologies Program (SETP) supports solar research and
development, systems integration, and market transformation initiatives
for high - profile partnership projects. SETP also provides technical
assistance to local, state and Federal government entities on technical
and policy /regulatory issues. More information on SEP and SETP
programs can be found at the DOE web site.36
5.1 Executive Orders for Energy Management and Sustainability
Executive Order 13423, Strengthening Environmental, Energy, and Transportation Management of
Federal Agencies, is a major impetus for new Federal agency energy management and sustainable energy
policies including encouraging the development of renewable energy projects.37 EO 13423 requires
Federal agencies to lead by example in advancing the nation's energy security and environmental
performance targets. Among the directives to Federal agencies, EO 13423 includes the following energy
goals:
• Improve energy efficiency and reduce greenhouse gas emissions from the agency by reducing
energy consumption by 3 percent annually through 2015 or by a total of 15% by the end of fiscal
year 2015 (relative to fiscal year 2003).
• Ensure that at least half of the agency's renewable energy consumption in a fiscal year is from
new renewable sources, and the agency should implement renewable energy generation projects
on agency property to the extent feasible.
36 www.doe.gov
37 Initiated by President Clinton, re- signed by President Bush in 2007 and codified into law with the passage by
Congress of the Omnibus Act of 2009, which was signed by President Obama in February 2009.
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FAA Solar Guide Chapter 5. Federal Role in Solar Development
• Ensure that, if the agency operates a fleet of more than 20 motor vehicles, it (i) reduce the fleets
total consumption of petroleum products by 2% annually through the end of fiscal year 2015
(compared to the 2005 baseline), (ii) increase fuel consumption of non - petroleum -based fuels by
10 percent annually, and (iii) use plug -in hybrid vehicles where cost - effective based on a life
cycle analysis.
Based on EO 13423, the FAA issued Order 1050.21 in 2007, mandating the development of an internal
FAA Environmental Management System (EMS) .3' The EMS is designed to identify potential
environmental impacts from FAA activities and to improve agency environmental performance on a
continual basis. In addition, the Office of Airports is proposing an Advisory Circular to sponsors on how
to develop and implement an airport EMS, which several airports around the country have already
accomplished to standard.
Executive Order 13514 of 2009, Federal Leadership in Environmental, Energy, and Economic
Performance requires Federal agencies to develop an inventory of their greenhouse gas emissions and to
quantify long -range targets for greenhouse gas reduction. 39 When establishing targets, Federal agencies
must consider reductions of energy intensity in Federal buildings and increased use of renewable energy
sources in all Federal facilities and vehicle fleets. Federal agencies are also encouraged to coordinate
with the private sector to develop incentives for vendors and contractors that use green technologies.
5.2 FAA Policy and Planning
The FAA is incorporating energy management and sustainability goals into many of the agency's policy
and planning documents. For example, energy management is cited in the 2010 FAA Business Plan as a
core objective:
"provide guidance and coordinate [FAA] efforts to plan, implement, and document agency
energy management activities to address national mandates without adverse effects on the
national aviation system. "40
In addition, the Office of Airports has included sustainability in its proposed 10 -year strategic plan as one
of the five major organizational goals along with safety, mobility, workforce, and international subject
areas.
Most importantly perhaps, the FAA is exploring a variety of environmental and sustainability initiatives
as part of the agency's major planning initiative for the future the Next Generation Air Transportation
System (NextGen). NextGen provides the agency's long -term blueprint for bringing promising research
on alternative aircraft fuels to commercialization and implementing new navigational systems that greatly
improve flight track and procedural efficiencies to reduce fuel burn and emissions. NextGen initiatives
for airports will include funding to critical areas of airport infrastructure expansion, including
environmental improvements that reduce airport carbon footprints.
" Order 1050.21 was issued on October 30, 2007 by Robert Sturgell, Acting Administrator for the FAA.
39 Signed by President Obama on October 9, 2009.
40 Aviation Policy, Planning, and Environment: Fiscal Year 2010 Business Plan, November 2009.
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FAA Solar Guide Chapter 5. Federal Role in Solar Development
5.2.1 Possible Strategies for Solar Development
Underlying FAA's general support of sustainable airport development is the agency's primary interest in
ensuring that solar projects do not interfere with safe and efficient air transportation. The FAA exercises
its safety responsibilities regarding solar development under Part 77 authority (see Chapter 3).
Provided aviation safety is insured, the FAA may be able to facilitate solar development in several ways
that help sponsors design and build modern and efficient solar facilities that save energy, reduce local
emissions and greenhouse gases, and lower airport operating costs. Possible strategies include:
• Expanding the use of solar energy for FAA facilities and operations.
• Developing FAA goals and policies for the environment, sustainability, and climate change that
lead to new investments in solar by the aviation community (Environmental policy is managed by
the Office of Environment and Energy).
• Providing sponsors with information through this guide and other means to help them explore the
best options for solar technology, financing, and construction. This includes informing sponsors
of the regulatory requirements for solar development and the need for early coordination with the
FAA to ensure timely FAA review and approvals.
• Encouraging sponsors to incorporate practical opportunities for solar energy in their long -term
master planning process.
• Supporting research initiatives that will contribute to improved siting, design, and safety
standards for airport solar facilities as well as greater efficiencies in the FAA review process.
5.2.2 FAA Airport Engineering Guidance
The FAA is putting increased emphasis on sustainability in its airport planning and design programs. The
growing acceptance of sustainability in airport planning has grown out of recognition that efficient energy
use and environmental design are cost - effective over the long -term and a smart investment in the nation's
aviation infrastructure.
The FAA has produced guidance on sustainability planning that demonstrates its commitment to
sustainable airport development. For example, the FAA Design Handbook for Energy Efficiency and
Water Conservation at National Airspace System Facilities states that the FAA should use
alternative /renewable power sources where they are shown to be cost - effective. 41 In addition, Advisory
Circular 150/5360 -9, Planning and Design of Airport Terminal Facilities at Non -hub Locations, states
under the energy conservation section that:
"solar architecture can be incorporated in new or existing buildings to replace or supplement
conventional heating systems. Active and/or passive systems can utilize the sun's energy to
considerably reduce energy usage in buildings for space heating. "42
41 Design Handbook: Energy Efficiency and Water Conservation at NAS Facilities. September 30, 1997. See
Section 5. Alternative and Renewable Electric Power Sources should be utilized in accordance with FAA 6980.26.
42 AC 150/5360 -9 was issued April 1980.
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FAA Solar Guide Chapter 5. Federal Role in Solar Development
5.2.3 Airport Sustainability Planning
Wise energy use including the generation of renewable energy is central to sustainability programs. The
FAA Airports Office initiated an airport sustainability pilot program in 2010. The 10 sponsors
participating in the pilot program are conducting one to two year studies of cost - effective sustainability
measures at their airports. Six of the studies will be stand -alone sustainability management reports while
the remaining four studies will be incorporated into separate chapters of Airport Master Plan Updates.
Participating airports were selected based on geographic variability and airport operations (3 Large Hubs,
1 Medium Hub, 3 Small Hubs, 1 Reliever, and 2 General Aviation).
The FAA hopes that the results of the sustainability pilot program will yield a clear direction for the
agency in the years ahead. Based on the findings, the FAA is likely to pursue more permanent initiatives
in the area of sustainability, including solar energy.
5.3 FAA Airport Funding
Sponsors often need additional resources to identify the
potential for solar energy and to plan and build a solar
facility. The FAA recognizes that the most effective
strategy for sponsors to accomplish this planning and
development is through private financing absent any
Federal assistance. The private sector has already
The FAA expects thatprivate
investment will continue to be the
developed a proven track record of designing and
operating successful airport facilities around the country. Private financing takes advantage of revenues
generated from the solar generation of electricity and a complementary package of Federal and state tax
incentives and utility renewable energy programs. Sponsors benefit financially from long -term electricity
price savings and lease payments. Successful airport projects have been constructed by private
developers in California, Colorado, and Massachusetts.
However, the FAA also recognizes that the viability of the private market today is limited geographically.
For solar to be economical, a number of financial incentives must be present. Federal tax rebates alone do
not guarantee profitability, nor is there a Federal Renewable Energy Standard (RES), which would require
utilities in all states to purchase a percentage of the electricity that they deliver to customers from
renewable sources. On the state level, many States do not offer meaningful tax incentives or RES
programs to spur renewable energy development. Airports located in such states are unlikely to be
approached by private investors. Consequently, future FAA activity in this area may need to focus on
existing gaps until solar technology prices come down in relation to conventional fuel prices or until
larger and more uniform Federal and state tax policies are established.
5.3.1 AIP and PFC Programs
Because most airports have suitable buildings and lands to host solar facilities, future demand for solar
funding may be substantial. Therefore, the limited FAA eligibility and funding for the environment
dictates that proposed solar projects provide significant benefits and compete effectively with other FAA
and airport development priorities.
Airports may be eligible under the FAA Airport Improvement Program (AIP) and Passenger Facility
Charge Program (PFC) to receive funding for cost - effective solar applications that are an essential or
integral part of the design of an approved terminal building design or development project. Stand -alone
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FAA Solar Guide Chapter 5. Federal Role in Solar Development
solar projects are not currently eligible under AIP and the PFC Program, unless proposed through the
FAA Voluntary Airport Low Emission Program (see below).
5.3.2 VALE Program
The FAA Voluntary Airport Low Emission Program (VALE) was established in 2005 under the AIP and
PFC Programs to provide sponsors with funding for low- emission projects to meet the requirements of the
Clean Air Act. The program is available to commercial service airports located in EPA - designated
nonattainment and maintenance areas. Details of the VALE program can be found at the VALE web site:
(www.faa.gov/airports/environmental/vale)
Because the VALE program is designed to address local air quality and criteria pollutants regulated by
National Ambient Air Quality Standards, only solar projects located in EPA - designated areas are eligible
for VALE funding. Solar thermal projects (e.g., passive solar walls and water heating systems) tend to be
more compatible with the program's intent because they offset heating and cooling emissions fueled by a
gas or oil fired burner operating on -site. In contrast, solar PV projects reduce airport electricity usage that
is delivered by the electricity grid from a regional power plant emission source. For this reason, solar PV
is more easily categorized under sustainability with its emphasis on carbon reductions and greenhouse
gases.
Two airport PV solar projects have been funded through the VALE program. The first project was a 60
kW facility at George Bush Intercontinental Airport (IAH) in 2009. The solar unit was designed as part
of a larger central heating and cooling plant low- emission project, contributing to the overall energy
efficiency of the system. The second project was a stand -alone 438 kW facility at Albuquerque
International Sunport (ABQ) in 2010 (see case study below).
ABQ met stringent AIP and VALE requirements to obtain VALE funding for its solar project. Additional
conditions and terms for FAA approval included:
• The State of New Mexico and the local utilities did not currently provide effective tax
rebates and incentives for solar. Thus, ABQ was unlikely to receive attention from the
private sector.
• The ABQ solar facility is airport-owned entirely without private investors or partners,
thus meeting AIP requirements and revenue restrictions.
• The sponsor agreed to apply all earned renewable energy credits (RECs) to airport utility
rate reductions, foregoing sale on the open market. Because ABQ is using the solar
power directly at the airport, no PPA was needed .43 Also, ABQ provided an assurance
that the electricity generated from the solar facility will be used to meet airport demand
only. 44
• The local air quality agency provided written assurance to the FAA that the sponsor
would receive a full complement of aviation emission reduction credits (AERCs) as if the
emission reductions occurred at the airport.
• Solar equipment purchased was manufactured in the U.S.
41 In cases with a PPA, the FAA requires a signed PPA prior to grant approval. Any available airport RECs must be
incorporated into the PPA for appropriate revenue use and the elimination of long -term accounting responsibilities.
44 AIP funding can only be used to meet airport and aviation - related needs and cannot be used for regional
purposes, such as providing incentives for plug -in electric rechargers at an airport parking lot.
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FAA Solar Guide Chapter 5. Federal Role in Solar Development
Sponsors should contact the Region or ADO early in the established AIP and PFC planning cycle if they
are considering a proposed project under the VALE program.
5.4 Recommendations
In the process of conducting the background research for this Guide and analyzing the information
collected, the FAA has identified several areas affecting airport solar development that need further
research or development. Specifically, the FAA recommends the following:
1. Further research and development of reflectivity and communication systems interference
standards for solar projects and related analysis requirements, especially for CSP technology.
2. Development of a 7460 supplemental form to improve Part 77 documentation for solar projects,
particularly potential reflectivity analysis.
3. Design and development of new assessment tools for modeling and evaluating solar projects.
4. Development of a specific NEPA categorical exclusion (Catex) for small solar projects.
5. A cost - benefit analysis of airport solar applications that compares alternative solar technologies
(e.g., PV, thermal, and parabolic) with site design alternatives (e.g., building vs. ground
mounting; tracking vs. fixed mounting).
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FAA Solar Guide Chapter 5. Federal Role in Solar Development
Case Study #5 — Building on Local Initiatives
Albuquerque International Sunport — New Mexico
The City of Albuquerque
constructed a 146 kW
roof - mounted solar
generation system on
existing parking structures
at the Albuquerque
International Sunport in
September 2009. The
project consists of 480
305 -watt solar panels on a
fixed mount system. The
electricity is used for
lighting throughout the
parking garage.
The project was an
initiative of the
Albuquerque Green
Program which seeks to
demonstrate the City's leadership by making wise and innovative choices to ensure that Albuquerque is a
sustainable community. Building on the first project, the City approached the FAA with a proposal to
obtain funding for a portion of the second phase under the Voluntary Airport Low Emissions Program
(VALE). The second phase project, which was recently approved for funding by the FAA, will add 438
kW of solar capacity to the existing facility and offset regional air emissions from fossil fuel power
plants.
The project is a demonstration of how the FAA can target funding to airports for solar projects and
produce regional air quality benefits by removing a portion of the airport's electricity demand from the
electric grid and replace it with emissions -free generation. Future solar projects to be considered for
funding under VALE will need to meet the standards set by the Albuquerque example including system
ownership by the airport, significant air quality benefits full emission reduction credits from the State or
local air quality agency, and no diversion of revenue generated from the long -term sale of RECs,
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FAA Solar Guide
Appendix A. FAA Contact Information
Appendix A
FAA Contact Information
A -1
FAA Solar Guide
Contact Information for FAA Offices
HEADQUARTERS
Federal Aviation Administration
Office of Airport Planning and Programming (APP)
800 Independence Avenue SW
Washington DC 20591
(202) 267 -8775 — Tel.
(202) 267 -5302 — Fax
Appendix A. FAA Contact Information
REGIONS AND AIRPORT DISTRICT OFFICES
Alaskan Region
(Alaska)
Federal Aviation Administration
Airports Division, AAL -600
222 West 7th Avenue #14
Anchorage, AK 99513
(907) 271 -5438 — Tel.
(907) 271- 2851 —Fax
Mailing Address:
222 West 8th Avenue #A36
Anchorage, AK 99513
Central Region
(Iowa, Kansas Missouri, Nebraska)
Federal Aviation Administration
Airports Division, ACE -600
901 Locust, Rm 335
Kansas City, MO 64106.2325
(816) 329 -2600 — Tel.
(816) 329 - 2610/2611— Fax
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FAA Solar Guide
Appendix A. FAA Contact Information
New England Region
(Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont)
Federal Aviation Administration
Airports Division, ANE -600
12 New England Executive Park
Burlington, MA 01803
(781) 238 -7600 — Tel.
(781) 238 -7608 — Fax
Eastern Region
(Delaware, District of Columbia, Maryland, New Jersey, New York, Pennsylvania,
Virginia, West Virginia)
Federal Aviation Administration
Airports Division, AEA -600
1 Aviation Plaza
Jamaica, NY 11434
(718) 553 -3330 — Tel.
(718) 995 -5694 — Fax
Physical Address:
159 -30 Rockaway Blvd
Jamaica, NY 11434
Harrisburg Airports District Office New York Airports District Office
(Delaware, New Jersey, Pennsylvania) (New York)
Federal Aviation Administration
3905 Hartzdale Drive, Suite 508
Camp Hill, PA 17011
(717) 730 -2830 — Tel.
(717) 730 -2838 — Fax
Washington Airports District Office
(District of Columbia, Maryland, Virginia)
Federal Aviation Administration
23723 Air Freight Lane, Suite 210
Dulles, VA 20166
(703) 661 -1354 — Tel.
(703) 661 -1370 — Fax
Federal Aviation Administration
600 Old Country Road, Suite 446
Garden City, NY 11530
(516) 227 -3800 — Tel.
(516) 227 -3813 — Fax
Beckley Airports Field Office
(West Virginia)
Federal Aviation Administration
176 Airport Circle
Beaver, WV 25813 -9350
(304) 252 -6216 — Tel.
(304) 253 -8028 — Fax
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FAA Solar Guide
Bismark Airports District Office
(North Dakota, South Dakota)
Federal Aviation Administration
2301 University Drive, Bldg 23B
Bismarck, ND 58504
(701) 323 -7380 — Tel.
(701) 323 -7399 — Fax
Detroit Airports District Office
(Michigan, Ohio)
Appendix A. FAA Contact Information
Great Lakes Region
(Illinois, Indiana, Michigan Minnesota, Not th Dakota, Ohio South Dakota,
Wisconsin)
Federal Aviation Administration
Airports Division, AGL -600
2300 East Devon Avenue
Des Plaines, IL 60018
(847) 294 -7272 — Tel.
(847) 294 -7036 — Fax
Federal Aviation Administration
11677 South Wayne Road, Suite 107
Romulus, MI 48174
(734) 229 -2900 — Tel.
(734) 229 -2950 — Fax
Chicago Airports District Office
(Illinois, Indiana)
Federal Aviation Administration
2300 East Devon Avenue
Des Plaines, IL 60018
(847) 294 -7336 — Tel.
(847) 294 -7046 —Fax
Minneapolis Airports District Office
(Minnesota, Wisconsin)
Federal Aviation Administration
6020 28`h Avenue South, Room 102
Minneapolis, MN 55450
(612) 713 -4350 — Tel.
(612) 713 -4364 —Fax
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FAA Solar Guide
Denver Airports District Office
(Colorado, Utah, Wyoming)
Appendix A. FAA Contact Information
Northwest Mountain Region
(Colorado Idaho, Montana, Oregon, Utah, Washington, Wyomingt)
Federal Aviation Administration
Airports Division, ANM -600
1601 Lind Avenue SW, Suite 315
Renton, WA 98057 -3356
(425) 227 -2600 — Tel.
(425) 227 -1600 — Fax
Federal Aviation Administration
26805 East 68t" Avenue, Suite 224
Denver, CO 80249 -6361
(303) 342 -1261 —Tel.
(303) 342 -1260 — Fax
Seattle Airports District Office
(Idaho, Oregon, Washington)
Federal Aviation Administration
1601 Lind Avenue SW, Suite 250
Renton, WA 98057 -3356
(425) 227 -2650 — Tel.
(425) 227 -1650 — Fax
Helena Airports District Office
(Montana)
Federal Aviation Administration
FAA Building, 2725 Skyway Drive, Suite 2
Helena, MT 59602 -1213
(406) 449 -5257 — Tel.
(406) 449 -5274 — Fax
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FAA Solar Guide
Appendix A. FAA Contact Information
Southern Region
(Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, Tennessee, South
Carolina, Puerto Rico, U.S. Virgin Islands)
Federal Aviation Administration
Airports Division, ASO -600
P.O. Box 20636
Atlanta, GA 30320 -0631
(404) 305 -6700 — Tel.
(404) 305 -6730 — Fax
Physical Address:
1701 Columbia Avenue, Suite 540
College Park, GA 30037
Atlanta Airports District Office
(Georgia, North Carolina, South Carolina)
Federal Aviation Administration
1701 Columbia Avenue, Campus Bldg 2 -26 -0
College Park, GA 30337 -2747
(404) 305 -7150 — Tel.
(404) 305 -7155 —Fax
Memphis Airports District Office
(Kentucky, Tennessee)
Federal Aviation Administration
2862 Business Park Drive, Building G
Memphis, TN 38118 -1555
(901) 322 -8180 — Tel.
(901) 322 -8195 — Fax
Jackson Airports District Office
(Alabama, Mississippi)
Federal Aviation Administration
100 West Cross Street, Suite B
Jackson, MS 39208 -2307
(601) 664 - 9900 —Tel.
(601) 664 -9901— Fax
Orlando Airports District Office
(Florida, Puerto Rico, U.S. Virgin Islands)
Federal Aviation Administration
5950 Hazeltine National Drive, Suite 400
Orlando, FL 32822 -5024
(407) 812 -6331 — Tel.
(407) 812 -6978 — Fax
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FAA Solar Guide
Appendix A. FAA Contact Information
Southwest Region
(Arkansas, Louisiana, New Mexico, Oklahoma, Texas)
Federal Aviation Administration
Airports Division, ASW -600
2601 Meacham Boulevard
Fort Worth, TX 76137 -4298
(817) 222 -5600 — Tel.
(9 17) 222 -5984 — Fax
Arkansas /Oklahoma Airport Development
Office
(Arkansas, Oklahoma)
Federal Aviation Administration
2601 Meacham Boulevard
Fort Worth, TX 76137 -4298
(817) 222 -5630 —Tel.
(817) 222 -5987 — Fax
Texas Airport Development Office
(Texas)
Federal Aviation Administration
2601 Meacham Boulevard
Fort Worth, TX 76137 -4298
(8 17) 222 -5650 — Tel.
(817) 222 -5989 — Fax
Louisiana /New Mexico Airport Development
Office
(Louisiana, New Mexico)
Federal Aviation Administration
2601 Meacham Boulevard
Fort Worth, TX 76137 -4298
(817) 222 -5640 —Tel.
(8 17) 222 -5988 — Fax
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FAA Solar Guide
Appendix A. FAA Contact Information
Western - Pacific Region
(Arizona, California, Hawaii, Nevada, Guam, American Samoa, Marshall Islands)
Federal Aviation Administration
Airports Division, AWP -600
P.O. Box 92007
Los Angeles, CA 90009
(310) 725 -3600 — Tel.
(310) 725 -6847 — Fax
Physical Address:
15000 Aviation Boulevard, Room 3012
Lawndale, CA 90261
Honolulu Airports District Office
(Hawaii, Guam, American Samoa, Marshall Islands)
Federal Aviation Administration
P.O. Box 50244
Honolulu, HI 96850 -0001
(808) 541 -1232 — Tel.
(808) 541 -3566 —Fax
San Francisco Airports District Office
(Nevada, Northern California)
Federal Aviation Administration
831 Mitten Road, Room 210
Burlingame, CA 94010
(650) 876 -2778 — Tel.
(650) 876 -2733 — Fax
FAA Technical Center
FAA Airport Technical R & D Branch
FAATC /AJP -6310 Building 296
William J. Hughes Technical Center
Atlantic City, NJ 08405
Tel. 609 - 485 -5147
Fax 609 -485 -4845
http: / /www.airporttech .tc.faa.gov /index.asp
Los Angeles Airports District Office
(Arizona, Southern California)
Federal Aviation Administration
P.O. Box 92007
Los Angeles, CA 90009
(310) 725 -3644 — Tel.
(310) 725 -6849 — Fax
Physical Address:
15000 Aviation Boulevard, Room 3024
Lawndale, CA 90261
FAA Airport Facilities Terminal Integration Laboratory
William J. Hughes Technical Center
Building 170
Atlantic City, NJ 08405
Tel. 609 -485 -6987
http://affil.tc.faa.gov/
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FAA Solar Guide
Appendix B. Existina Solar
Appendix B
Existing Airport Solar Projects and
Contacts
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FAA Solar Guide Appendix C. Private Developer Ground Lease
Appendix C
Private Developer Ground Lease
Example (Denver)
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FAA Solar Guide Appendix C. Private Developer Ground Lease
GROUND LEASE AGREEMENT
SUMMARYPAGE
This Summary Page, consisting of two pages, is attached to and made a part of that
certain Ground Lease Agreement dated 2009 between
the City and County of Denver and the Tenant listed below.
TENANT
Name XYZ Solar
Address Somewhere
Denver. CO
Attention Solar Rep
LEASE PREMISES
Location Denver International Airport ( "DIA ")
Address 8500 Pena Boulevard
Denver, Colorado 80249 -6340
Square Footage
PERMITTED installation and operation of a photovoltaic power system and
USES related equipment
HOURS OF OPERATION 365 days a year, weather permitting
TERM
Effective Date Date Lease becomes effective upon City Council
approval
Expiration Date 25 years from Commencement Date
SFCA 472976.2
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FAA Solar Guide Appendix C. Private Developer Ground Lease
COMPENSATION (Initial)
Ground Rent Annual Rate of $TBD.00 per acre
Energy Production at Agreed as provided in Solar Power Purchase
Price Agreement between the Parties
INSURANCE POLICY AMOUNTS
A. Comprehensive General Liability $1,000,000.00/$2,000,000.00
B. Automobile /Delivery Vehicle $1,000,000
Liability
DESCRIPTION OF EXHIBITS AND ADDENDA
Exhibit A Lease Premises Legal Description
Exhibit B Site Plan of Lease Premises and Site Improvements
Exhibit C Purchase Option Summary Sheet
Exhibit D Insurance Certificate
Exhibit E Design Standards, Construction Procedures, and DIA Performance
Specifications
Exhibit F DIA Environmental Requirements
Tenant
P
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FAA Solar Guide Appendix C. Private Developer Ground Lease
CONSTRUCTION SUMMARY PAGE
This Summary Page, consisting of one page, is attached to and made a part of that
certain Ground Lease Agreement dated , 2007 between
the City and County of Denver and the Tenant listed below.
TENANT
Name XYZ Solar
Address Somewhere
Denver. CO
Attention Solar Rep
CONSTRUCTION AND INSTALLATION DEADLINE
December 31. 2010
CONSTRUCTION PERFORMANCE AND PAYMENT BOND AMOUNT
(100% of construction contract price)
CONSTRUCTION INSURANCE POLICY AMOUNTS
A. Builders Risk 100% of construction contract price
B. Minimum Commercial General
Liability
Combined Single Limit
General Aggregate
C. Business Auto Liability
Combined Single Limit
D. Worker's Compensation
SFCA 472976.2
$1,000,000
$2,000,000
$1,000,000
Statutory Requirements
Lessee
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FAA Solar Guide Appendix C. Private Developer Ground Lease
GROUND LEASE AGREEMENT
between
CITY AND COUNTY OF DENVER
and
XYZ Solar
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FAA Solar Guide Appendix C. Private Developer Ground Lease
LEASE AGREEMENT
THIS LEASE AGREEMENT ( "Lease "), is made and entered into on the
day of 2009, by and between the CITY AND COUNTY OF DENVER,
a municipal corporation of the State of Colorado ( "City "), and XYZ Solar, a Colorado
partnership authorized to do business in the State of Colorado ( "Tenant ").
WHEREAS, the City owns and operates Denver International. Airport ( "Airport"),
located in the City and County of Denver, Colorado, and Tenant desires to obtain
certain rights, services, and privileges in connection with the use of the Airport; and
WHEREAS, the City has determined that in the exercise of its lawful functions,
and to serve better the Airport's public use, it is desirable and appropriate that a
photovoltaic power system (the "System ") be developed, constructed, equipped, and
operated on Airport land, and that such use is compatible and appropriate within the
uses allowed for Airport land, in order to put the same to full, productive use and for the
benefit of the Airport; and
WHEREAS, the City deems it appropriate and necessary in the public interest to
have the System, which is owned by Tenant, operated upon the Airport by the Tenant;
and
WHEREAS, Tenant hereby binds itself subject to the terms and provision of this
Lease to pay to the City the rentals and payments required herein and to otherwise
perform all of the terms and conditions of this Lease;
NOW THEREFORE, for and in consideration of the rentals and of the terms and
conditions stated in this Lease on the part of the Tenant to be kept, observed and
performed, the City does by these presents demise and lease to Tenant, and Tenant
has agreed to take and does hereby take from the City, the Lease Premises (as defined
below), as they may be improved, all upon and subject to the following terms and
conditions:
SECTION 1
GENERAL
1.01 CONSIDERATION. The City enters into this Lease in consideration of the
payment by Tenant as herein provided and of the performance and observance by
Tenant of the covenants and agreements herein.
1.02 INCORPORATION OF ATTACHED SUMMARY PAGES, EXHIBITS, AND
ADDENDA. The Summary Pages attached to the Lease and the Exhibits and
Addenda as described on the Summary Pages and attached to this Lease are
incorporated into this Lease by reference.
1.03 CONDITIONS PRECEDENT TO EFFECTIVENESS OF LEASE. The
Parties agree that acknowledgement of no objection from the Federal Aviation
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FAA Solar Guide Appendix C. Private Developer Ground Lease
Administration of the plans for the Generating Facility shall be a condition precedent to
the effectiveness of this Lease.
SECTION 2
DEFINITIONS
2.01 AUDITOR. "Auditor' shall mean the City's Auditor and his authorized
representative.
2.02 BUILDING CODE. "Building Code' shall mean the Building Code for the
City and County of Denver, which is based on the codes developed by the International
Code Council ( "ICC'). These include the 2003 Series of I Codes, and accompanying
National Electrical Code regulated by the National Fire Protection Association and the
State of Colorado Electrical Board, as amended by the City Council. The 2004 Denver
Building Code Amendments include changes to the following: 2003 International
Building Code; 2003 International Residential Code; 2003 International Mechanical
Code; .2003 International Fuel and Gas Cade; 2003 International Energy Conservation
Code; 2003 International Plumbing Code; 2003 International Fire Code; 2005 NEC
National Electrical Code. Note: The International Electrical Code, International Zoning
Code and International Property Maintenance Codes have not been adopted.
2.03 COMMENCEMENT DATE. "Commencement Date" shall mean the
date of completion established and memorialized by a written notice issued by Tenant
and addressed to the Manager, and acceptance of the System, which shall be no later
than December 31, 2009, and shall be established and memorialized by a written notice
issued by the Manager and addressed to Tenant.
2.04 DIA DESIGN STANDARDS. "DIA Design Standards' shall mean the
design standards and criteria for Denver International Airport, and as they may be
amended from time to time.
2.05 DIA DEVELOPMENT GUIDELINES. "DIA Development Guidelines'
shall mean the tenant development guidelines and criteria established for Airport
tenants and concessionaires for design, construction, installation, signage, and related
matters, and as they may be amended from time to time.
2.06 DIA ENVIRONMENTAL GUIDELINES. "DIA Environmental Guidelines"
shall mean the environmental standards and criteria established for tenant operators at
the Airport, and as hereafter amended, to the extent they apply to this project.
2.07 LAND. "Land" shall mean the parcel of real property legally
described on Exhibit A and generally depicted on Exhibit B attached hereto and
containing the number of acres, more or less, as set forth therein. The City expressly
reserves from the Land all oil, gas, and other mineral rights, air rights, and water rights.
2.08 LEASE PREMISES. "Lease Premises" shall mean the Land upon
which the System is installed.
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FAA Solar Guide Appendix C. Private Developer Ground Lease
2.09 MANAGER OR MANAGER OF AVIATION. "Manager" or "Manager of
Aviation" shall mean the Manager of the City's Department of Aviation.
.2.10 PAST DUE INTEREST RATE. "Past Due Interest Rate" shall mean
interest accruing at One Percent (1 %) per month commencing on the fifth calendar day
after the date such amount is due and owing until paid to the City.
2.11 POWER PURCHASE AGREEMENT. "Power Purchase Agreement"
shall mean that certain Power Purchase Agreement of even date herewith, between
Tenant as Power Provider, and the City as Purchaser.
.2.12 SITE IMPROVEMENTS. "Site Improvements' shall mean all initial
construction and any improvements on the Lease Premises, as well as any other
improvements outside of the Lease Premises but on Airport property, including access
roadway improvements, drainage improvements, utility and System interconnects, as
described in Exhibit B attached hereto, and any future improvements approved by the
Manager and constructed by Tenant pursuant to terms of this Lease.
2.13 SYSTEM. "System" shall mean the solar panels, mounting substrates
or supports, wiring and connections, power inverters, service equipment, and utility
interconnections installed by Tenant on the Lease Premises and part of the photovoltaic
power generating system owned and operated by Tenant.
2.14 TENANT'S EQUIPMENT. "Tenant's Equipment" shall mean personal
property and equipment, and signs used in the operation of the business of Tenant on
the Lease Premises but not specifically part of the System.
SECTION 3
LEASE OF PREMISES
3.01 LEASE RIGHTS GRANTED. The City grants to Tenant the right to
construct upon, occupy and use the System on the Lease Premises consistent with and
subject to all of the terms and provisions of this Lease. The rights and privileges
granted herein are subject to prior easements, rights of way, and other matters affecting
title to the Land. The Land is expressly subject to an avigation easement hereby
reserved to the City and the Airport for the flight of aircraft over the Lease Premises.
Should any easements or rights of way to the Land that would prevent Tenant's
performance hereunder or under the Power Purchase Agreement materialize at some
future date, the City agrees to resolve and work around such matters at its sole cost
and expense.
3.02 USE OF LEASE PREMISES. Tenant shall have the right to construct
upon and use the Lease Premises solely for the installation and operation of the
System and related services as set forth on the Summary Pages. Tenant shall also
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FAA Solar Guide Appendix C. Private Developer Ground Lease
have the right to store Tenant's inventory of spare parts for the operation and
maintenance of the System at the Airport's parts distribution facility, with such space
not to exceed 100 square feet. The City shall make such stored spare parts available
to Tenant within two (2) business days upon request by Tenant. The Lease Premises
shall be utilized for no other purposes, unless otherwise authorized in writing by the
Manager of Aviation. It is understood that the use of Lease Premises is restricted by
the zoning code designation by the City, by the Intergovernmental Agreement (IGA)
dated April 21, 1988, between the City and Adams County, and by all applicable rules,
regulations, statutes or ordinances promulgated by any federal, state, or municipal
agency having jurisdiction over the Lease Premises. The Land is zoned 0-2, Open
Space, and such zoning code designation specifically allows energy production.
3.03 RIGHTS NOT EXCLUSIVE. The City reserves the right to grant to
other tenants the right to provide the same or similar services as described on the
Summary Pages at other locations at the Airport and in the City; provided, however,
that such grant to other tenants shall not interfere with Tenant's rights hereunder or
Tenant's ability to perform as Power Provider under the Power Purchase Agreement.
Tenant expressly understands and agrees that although it has the exclusive right to
produce solar energy on the Lease Premises, its rights to produce solar energy for the
City and County of Denver are not exclusive.
3.04 CITY RESERVATION; NO INTERFERENCE. The City reserves for itself
the right to install utilities upon areas of the Lease Premises as necessary or convenient
for the operation of the Airport, and the City further shall have the right to grant
easements in areas of the Land for the installation of utilities, provided that the use of
such areas or the grant of such easements does not unreasonably interfere with the
Tenant's operations and use of the Lease Premises. The Tenant shall not be entitled
to any compensation or abatement of rent if the use of such areas or the grant of such
easements does not unreasonably interfere with the Tenant's operations or use of the
Lease Premises. Notwithstanding the above, and notwithstanding the System's
presence as a fixture on the Lease Premises, the City represents to Tenant that the
City has legal title to the Land and that there are no circumstances known to the City
and no commitments to third parties that may damage, impair, or otherwise adversely
affect or interfere with the System or its function by blocking the System's insolation
and access to sunlight; furthermore, the City covenants that the City shall not cause or
permit any such interference with the System's insolation and access to sunlight.
3.05 MEANS OF ACCESS. Tenant, its agents and employees, have a non-
exclusive right of ingress to and egress from the Lease Premises by a means of access
located outside the Land as specified by the City: The City may, at any time,
temporarily or permanently, close or consent to or request the closing of any roadway
or other right -of -way for such access, ingress and egress, and any other area at the
Airport or in its environs presently or hereafter used as such, so long as there is
reasonable access, ingress and egress available to the Lease Premises except in the
case of severe snow storms, other extreme and materially adverse weather conditions,
and any increased security alerts. Tenant hereby releases and discharges the City of
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FAA Solar Guide Appendix C. Private Developer Ground Lease
and from any and all claims, demands or causes of action which the Tenant may at any
time have against the City arising or alleged to arise out of the closing of any roadway
or other right -of -way for such access, ingress and egress or other area at the Airport or
in its environs used as such, so long as reasonable and proper notice of such
modification was given by the City to Tenant, and reasonable access, ingress and
egress is available after any such modification.
3.06 RIGHT OF INSPECTION. The City retains the full right of entry upon the
Land and to the Lease Premises, with reasonable notice to Tenant, for any purpose
necessary, incidental to or in connection with its obligations hereunder, or in the
exercise of its governmental functions, or for the purpose of making any inspection or
conducting any testing it deems necessary. The City shall not be obligated to notify
Tenant in advance of any entry upon the Land and /or the Lease Premises by the City or
agent of the City that is deemed by the City to be of any emergency nature, in the sole
discretion of the City, and the City agrees to give notice to Tenant within a reasonable
time after such emergency entry. No such entry by or on behalf of the City upon the
Land and /or the Lease Premises shall constitute or cause a termination of the Lease
nor shall such entry be deemed to constitute an interference with the possession
thereof by the Tenant.
SECTION 4
TERM
4.01 TERM. "Term" shall mean the period commencing at noon on the
Effective Date and expiring at noon on the Expiration Date specified on the Summary
Pages.
4.02 TERMINATION OF LEASE BY CITY FOR AVIATION PURPOSES. The
City reserves the right to terminate this lease for the purpose of implementing any
master plan for development or expansion of the Airport, as required by the Federal
Aviation Administration, or as required for air navigation purposes. In the event the
Manager of Aviation determines that the City requires use of the property for aviation
purposes during the Term, and such aviation purposes require termination of the lease,
the City shall have the right to terminate this Lease upon six (6) months prior written
notice to Tenant and payment of the Termination Value in Exhibit C. Notwithstanding
the System's presence as a fixture on the Site, in such instance when the City requires
termination of the lease, the City shall be responsible for all associated costs of
removal. If such notice is provided under this paragraph, then the City, at its option,
may offer to Tenant comparable and suitable alternate land which shall to the extent
possible be similar to the property as to size and general location, and provided Tenant
is not in default hereunder, shall pay to Tenant a Relocation Reimbursement equal to
the actual removal, reinstallation, interconnection expenditures and all costs of
deployment incurred by Tenant for such relocation, should Tenant, in its reasonable
discretion, agree to such relocation. In such instance when the City requires relocation,
the City shall pay to Tenant, in addition to other amounts set forth in this section, a
monthly payment (prorated as needed) equal to the average power purchase set forth
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FAA Solar Guide Appendix C. Private Developer Ground Lease
in Section 4 of the Power Purchase Agreement for the preceding twelve (12) months, or
however long the System has been in Commercial Operation if less than twelve (12)
months, for the period of time during which the System is not in Commercial Operation
due to the relocation.
4.03 HOLDING OVER. If Tenant holds over after termination of this Lease,
thereafter Tenant's . occupancy shall be at sufferance but otherwise Tenant shall be
bound by all terms and conditions as herein provided in the absence of a written
agreement to the contrary. Nothing herein shall be construed to give Tenant the right to
hold over at any time, and the City may exercise any and all remedies at law or in equity
to recover possession of the Lease Premises, as well as any damages incurred by the
City.
4.04 SURRENDER OF LEASE PREMISES. Upon the expiration or earlier
termination of this Lease on the date specified in any demand for possession by the
City after any default by Tenant, Tenant covenants and agrees that, at the City's sole
option, (i) the City shall elect to purchase the System in accordance with Section 4.05
or (ii) if the City is not in default under the Power Purchase Agreement, then at Tenant's
expense Tenant shall remove the System or such portion thereof as is specified by the
Manager, within one hundred twenty (120) days of such expiration or termination or
within such additional time as is granted by the Manager. If termination of this Lease is
due to the default of City, and the City elects not to purchase the System, the City shall
be responsible for removal costs for the System. If all or any portion of the System is
removed as requested by the City, Tenant shall, at tenants expense, restore the Land
or property to conditions existing prior to the installation of such improvements or
applicable portions thereof, and upon failure to do so the City may cause such removal
and restoration to be done at Tenant's expense. If Tenant fails to remove any of
System by the expiration or termination of this Lease, the City may, at its option, keep
and retain any such System or dispose of the same and retain any proceeds therefrom,
and the City shall be entitled to recover from Tenant any costs of the City in removing
the same and in restoring the Lease Premises subject to ordinary wear and tear, in
excess of the actual proceeds, if any, received by the City from disposition thereof.
4.05 OPTION FOR PURCHASE OF SYSTEM. At any time after the sixth
anniversary of the Commencement Date, the City may elect, in its sole discretion and at
its sole option, to purchase the System from the Tenant, including all rights and
privileges held by the Tenant. If the City elects to purchase the System prior to the
Expiration Date, the City shall pay to the Tenant the greater of the then Fair Market
Value or Buyout Price set forth in the Purchase Option Summary Sheet attached to this
Ground Lease as Exhibit C. If the City elects to exercise the purchase option at the
Expiration Date, the purchase price shall be the then Fair Market Value. Not less than
ninety (90) days prior to the projected date for exercise of the purchase option, the City
shall provide written notice to Tenant of the City's desire to determine the Fair Market
Value of the System. The city shall not elect to exercise its Purchase Option until after
a Fair Market Value has been determined. Upon the exercise of the foregoing
purchase option plus receipt of the Fair Market Value or Buy -Out Price, as applicable,
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and all other amounts then owing by the City to Tenant, the parties will execute all
documents necessary to cause title to the System to pass to the City as -is, where -is,
provided, however, that Tenant shall remove any encumbrances placed on the System
by the Tenant. The "Fair Market Value" of the System shall be the value determined by
the mutual agreement of the City and Tenant within thirty (30) days of the City's notice
of desire to determine the Fair Market Value pursuant to this Section 4.05. If the City
and Tenant cannot mutually agree to a Fair Market Value, then the parties shall select a
nationally recognized independent appraiser with experience and expertise in the solar
photovoltaic industry to value such equipment. Such appraiser shall act reasonably and
in good faith to determine the Fair Market Value and shall set forth such determination
in a written opinion delivered to the parties. The valuation made by the appraiser shall
be the price at which the City may, in its sole discretion, determine to exercise its
Purchase Option. The costs of the appraisal shall be borne by the parties equally. To
the extent transferable, the remaining period, if any, on all warranties for the System will
be transferred from Tenant to the City at no cost to the City. If the parties are unable to
agree on the selection of an appraiser, such appraiser shall be selected by the two
appraiser firms proposed by each party. Upon any such purchase of the System by the
City, Tenant shall convey all its title, ownership rights, and any other interests Tenant
holds in the System and the renewable energy certificates and other revenues related
to the System. Such purchase and assignment shall be conditioned upon the consent
of Public Service Co. of Colorado to the transfer and assignment of the agreements
between the Tenant and Public Service Co. of Colorado.
SECTION 5
COMPENSATION
5.01 COMPENSATION
A. Ground Rent. Tenant agrees to pay the City the Ground Rent
set forth on the Summary Pages beginning on the Effective Date and thereafter on
January 1 of each calendar year, in advance and without demand, during the Term, as
it may be modified from time to time, subject to the City's right to reestablish said
Ground Rent under Section 5.05. The Ground Rent for any partial month during the
Term shall be prorated on a per diem basis.
B. Purchase Price and Energy Output. Tenant agrees to provide
to the City, and the City agrees to purchase, the Energy Output at the Purchase Price
specified in the Power Purchase Agreement.
5.02 INTEREST ON PAST DUE AMOUNTS
Any payments not made to the City within five (5) business days after the date such
amount is due and owing shall accrue interest at the Past Due Interest Rate, as herein
defined.
5.03 PLACE AND MANNER OF PAYMENTS
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All Ground Rent and other compensation payable to the City hereunder shall be made
payable to "Airport Revenue Fund" without notice at the following:
Office of the Manager of Aviation
Denver International Airport
P.O. Box 492065
Denver, Colorado 80249 -2065
or at such other place as the Manager of Aviation or his authorized representative may
hereafter designate by notice in writing to Tenant.
All sums shall be payable in legal tender of the United States. Any check given to the
City shall be received by it subject to collection, and Tenant agrees to pay any charges,
fees or costs incurred by the City for such collection, including reasonable attorney's
fees.
5.04 BOOKS OF ACCOUNT AND AUDITING.
Tenant expressly agrees that the City's Manager and Auditor and their
authorized representatives may inspect any sales tax return or report and
accompanying schedules and data which Tenant may file with the City pursuant to the
City's Retail Sales Tax Article, and any reporting and Environmental Incentive data
which Tenant may file with the Public Service Co. of Colorado, and waives any claim of
confidentiality which it may have in connection therewith.
5.05 REESTABLISHMENT OF RENTALS, FEES AND CHARGES
The City, through its Manager of Aviation, may from time to time, at intervals of not
more than five (5) years, at the Manager of Aviation's sole discretion, and subject to the
requirements of any outstanding bond ordinance pertaining to the Airport, reestablish
the rentals, fees and charges provided for herein. The City agrees that such right shall
not be exercised prior to an effective date which is the sixth anniversary of the
Commencement Date, and such reestablished schedule of rentals, fees and charges
shall be reasonable in relation to the cost of providing, operating and maintaining
property, services and facilities of the airport system.
If the Manager of Aviation proposes any change in the schedule of rentals, fees and
charges, the City will give notice thereof to Tenant not less than ninety (90) days before
the same is to become effective. Should the proposed changes result in an increase of
more than Five Percent (5 %) in the dollar amount of compensation paid by Tenant for
the prior calendar year, then Tenant may decline to pay compensation at the new
rate(s). Tenant shall promptly (but in no event less than thirty (30) days prior to the
proposed effective date of such schedule of rentals, fees and charges) advise the
Manager of Aviation of its intention to cancel and terminate this Lease. Upon such
notice of intent to cancel and terminate, Tenant shall surrender the Demised Premises
upon a date specified by the Manager of Aviation but in no event less than one hundred
twenty (120) days after the Tenant's notice of intent to cancel. In no event shall the rate
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increase go into effect if Tenant has timely delivered its intent to cancel and terminate
this Lease. Should Tenant fail to give timely notice of cancellation and termination,
then it shall be deemed to have accepted the new rate(s) of compensation as
promulgated by the Manager of Aviation.
No failure by the City to reestablish the rentals, fees, and charges at a five -year interval
date shall constitute a waiver of the City's right to reestablish the rentals, fees, and
charges at any time thereafter.
SECTION 6
CONSTRUCTION AND INSTALLATION OF SYSTEM
6.01 CONSTRUCTION OF SYSTEM. Tenant shall, at its sole cost,
construct and install the System and Site Improvements in full compliance with
approved plans and specifications and the requirements of Exhibit E as hereinafter
provided.
6.02 CONSTRUCTION OF SITE IMPROVEMENTS. Tenant shall, at its
sole cost, construct and install the Site Improvements in full compliance with approved
plans and specifications as hereinafter provided.
6.03 APPROVAL OF PLANS AND SPECIFICATIONS. As more fully
described in Exhibit E attached, full and complete plans and specifications for all work,
site development, facilities and improvements, and a schedule of the time required to
complete same, shall be submitted to Airport Engineering for review and written
approval, with such review and written approval to be issued in a reasonably timely
manner. The plans and specifications shall be separately submitted to the City's
Building Inspection Division for consolidated review by the Building Inspection and Fire
Department.
First -class standards of design and construction shall be required in
connection with all such work, facilities and improvements, and all improvements shall
conform with applicable statutes, FAA approval requirements, ordinances, building
codes, regulations, DIA Design Standards, DIA Development Guidelines and DIA
Environmental Guidelines and other general requirements of the Airport and the City.
The approval given by the City shall not constitute a representation or warranty as to
such conformity nor does the City warrant the suitability of the site for the Tenant's
operations; responsibility therefor shall at all times remain with Tenant.
6.04 CONSTRUCTION PERIOD. Tenant shall complete the construction
and installation of the System and Site Improvements no later than the date set forth on
the Summary Pages ( "Construction Period "). The Construction Period shall be
extended by the Manager if completion of the System or Site Improvements was
delayed through no fault of Tenant. Notwithstanding the foregoing, in no event shall
construction delays affect the date upon which compensation is due. The City shall
inspect the construction and perform acceptance tests to demonstrate System output
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and proper performance of System interconnection.
6.05 COORDINATION OF CONSTRUCTION. Tenant shall cooperate
with the City and its planners, designers, architects, and engineers in the
construction and installation of the System and Site Improvements on the Lease
Premises and comply with the approved plans and specifications of the Building
Code, and to the extent applicable the DIA Development Guidelines. Tenant
recognizes that during its Construction Period construction may also occur in
adjacent areas surrounding its Lease Premises, and Tenant agrees to monitor
construction in adjacent areas and coordinate the work of its contractors with the
construction, scheduling and construction staging occurring in adjacent areas.
Tenant shall prevent activities associated with the construction or
installation of the System at the Airport from interfering with travelers, other
businesses or Airport operations, and such activities may be required to be
accomplished during off hours, in whole or in part, requiring overtime payments to
workers.
Tenant shall be responsible for all utilities needed during construction.
Tenant or its contractor shall at all limes keep the construction site and
surrounding area in a clean, orderly and safe condition free of accumulated
construction debris and waste materials, and shall be responsible for removal of
all construction debris and waste materials to a suitable licensed landfill off DIA
property.
All construction work, materials, and installations involved in or
incidental to the construction on the Lease Premises shall be subject at all times
to inspection and approval by the City. The City shall at all times have the right of
access to the Lease Premises to monitor and inspect the construction of the Site
Improvements to assure that such improvements are constructed and installed in
compliance with the approved plans and specifications.
The City shall have the right to halt construction or deny access to the
Lease Premises at any time if such construction is at material variance from the
approved plans and specifications until such material variance is corrected, or if
such construction poses an immediate safety hazard at the Airport, until such
safety hazard is eliminated. The City shall cooperate and use its best efforts to
alleviate and resolve any such material variance or impediment to the safe
operation of the Airport so as to permit continuation of construction as
expeditiously as possible.
6.06 ENVIRONMENTAL REQUIREMENTS FOR CONSTRUCTION.
In the performance of construction activities for the Tenant Improvements or Site
Improvements, Tenant is responsible for insuring that it or its contractor complies
with all federal, state and local environmental requirements including without
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limitation the requirements of Exhibit F attached and the following
A. Environmental Control. Tenant shall comply with the
requirements under Denver International Airport Technical Specifications Section
for Environmental Controls and Temporary Erosion and Sedimentation Control.
B. Air Pollution. If required by law. Tenant shall obtain a fugitive
dust permit from the Colorado Department of Health and Environment.
C. Stormwater Permit. If required by law, Tenant shall obtain a
construction stormwater permit from the Colorado Department of Health and
Environment.
D. Soil Erosion and Sedimentation Control. Tenant shall submit
a plan for the City review and approval pertaining to proposed measures to
control soil erosion and sedimentation during construction. The plan shall comply
with Technical Specification for Temporary Erosion and Sedimentation Control.
These specifications address topsoil stripping, soil stockpiling, runoff control,
sedimentation (traps), air and water pollution, maintenance and inspection.
Tenant shall implement prudent industry practices in preventing soil erosion and
controlling sedimentation.
E. Solid and Hazardous Waste Controls. Tenant is responsible
for minimizing the amount of "solid" and hazardous waste generated during
construction activities. "Solid waste" is defined as all putrescible and non -
putrescible solid, semi -solid and liquid wastes, but does not include hazardous
waste. An attempt should be made to recycle generated waste. Disposal of
waste shall be used as a last resort. Tenant is responsible for the safe disposal of
all solid and hazardous waste and shall dispose of such waste in accordance with
all applicable laws, regulations and ordinances.
Tenant shall minimize the land disposal of construction waste to
the maximum extent practicable. Activities under this provision include the
recycling of rebar, concrete, oil, asphalt and drywall.
F. Noise and Vibration Control. Tenant shall comply with all
noise and vibration control requirements of Denver International Airport Technical
Specification Section 01566.
6.07 AS -BUILT DRAWINGS. Not later than sixty (60) days after
completion of all work for the System and any Site Improvements, Tenant shall
provide the City complete sets of as -built drawings prepared in accordance with
Exhibit E attached. If Tenant fails to provide the as -built drawings after written
notice from the City, the City may elect to have the drawings completed and
charge Tenant for the costs associated therewith. Tenant agrees that, upon the
request of the City, Tenant will inspect the Lease Premises jointly with the City to
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verify the as -built drawings. All material improvements made by Tenant shall be
subject to inspection by the City and approval by Manager within fourteen (14)
calendar days of request for approval, and shall be removed and replaced at
Tenant's sale cost immediately if disapproved.
6.08 BUILDING PERMIT. Tenant or its contractor are solely
responsible for applying for, obtaining, and paying for all required building permits,
licenses and other approvals, and is responsible for submitting plans and
specifications to the City's Building Inspection Division for the necessary building
permits.
6.09 CONSTRUCTION BONDS. Prior to the commencement of
construction, Tenant shall deliver to the Manager a payment and performance
bond in a sum not less than One Hundred Percent (100 %) of construction contract
price payable to Tenant's contractor. Said bond shall guarantee prompt and
faithful payment by the Tenant directly to Tenant's contractors and by Tenant's
contractors to all persons supplying labor, materials, team hire, sustenance,
provisions, provender, supplies, rental machinery, tools and equipment used
directly or indirectly by the said contractor, subcontractor(s) and suppliers in the
prosecution of the work provided for in said construction contract and shall protect
the City from any liability, losses or damages arising therefrom.
All bonds shall be issued by a surety company licensed to transact
business in the State of Colorado and satisfactory to and approved by the City
and shall be in form and with condition as provide in DIA Development Guidelines.
In lieu of a construction bond, the Tenant may provide only such
alternate forms of security as are permitted in DIA Development Guidelines, in
such form and with conditions as provided therein.
6.10 CONSTRUCTION INSURANCE. Tenant agrees to secure or
require each contractor to secure and to keep in full force and effect during and
until completion of the System and Site Improvements the following insurance:
A. Builders Risk Insurance. A builder's risk insurance policy
covering 100% of the construction contract amount.
B. Commercial General Liability Insurance. A commercial
general liability insurance policy on a comprehensive form, written on an
occurrence basis and including coverage for premise /operations,
products /completed operations, contractual, independent contractors, broad form
property damage, personal injury, and fire legal liability. This commercial general
liability insurance policy shall be in an amount not less than Two Million Dollars
($2,000,000) for bodily injury and property damage in a combined single limit per
occurrence and in aggregate, for liability associated with this Lease.
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This policy shall be written with an insurance provider acceptable to and
approved by the City. It shall further cover the obligations assumed by Tenant
hereunder and shall name and endorse the City as an additional insured. This
policy shall contain a waiver of subrogation in favor of the City. This insurance
policy shall not contain any care, custody or control exclusions, and shall not
contain any exclusion for bodily injury to or sickness, disease or death of any
employee of Tenant or any of its contractors which would conflict with or any way
impair coverage under the contractual liability endorsement.
C. Business Auto Liability Insurance. A business auto liability
insurance policy which includes coverage for owned, non -owned and hired
vehicles in an amount not less than One Million Dollars ($1,000,000) for landside
or tunnel access in a combined single limit for damage or bodily injury, including
wrongful death, as well as from claims for property damage, which may arise from
the ownership, use or maintenance of owned or non -owned vehicles, including
rented vehicles, and including their use on or off City property or by City
personnel. This policy shall name and endorse the City as an additional insured
and shall contain a waiver of subrogation in favor of the City.
D. Workers Compensation Insurance. Worker's compensation
insurance which shall comply with the requirements of the Worker's
Compensation Act of Colorado and shall provide coverage including employer's
liability with a minimum limit of One Million Dollars ($1,000,000) to protect Tenant
from any and all claims arising from performance of work. under this Lease.
The above amounts may be increased or modified by the Manager, or in
accordance with the DIA Development Guidelines, at any time during construction.
6.11 LIMITATION ON LIABILITY. Tenant agrees that no liability shall
attach to the City for any damages or losses incurred or claimed by Tenant or any other
person or party on account of the construction or installation of the System and any Site
Improvements or other improvements to or upon the Airport made by Tenant. Tenant
agrees that no liability shall attach to the City for any interference or delay caused by
construction in adjacent areas or Airport operations, including without limitation
damages or losses in the nature of delay damages, lost labor productivity, and impact
damages. The City agrees that no liability shall attach to Tenant as a result of any City -
caused interference or delay.
6.12 COMPLIANCE WITH ALL LAWS AND REGULATIONS. Tenant
agrees not to use or permit the Lease Premises to be used for any purpose prohibited
by the laws of the United States or the State of Colorado or the ordinances or Charter
of the City and County of Denver, or not authorized hereunder, and it further agrees
that it will use the Lease Premises in accordance with all applicable federal, state and
local laws and all general rules and regulations adopted by the City or the Manager for
the management, operation and control of the Airport, either promulgated by the City on
its own initiative or in compliance with regulations, requirements or actions of the
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Federal Aviation Administration or other authorized federal agency. Tenant further
agrees to submit any report or reports or information which the City is required by law or
regulation to obtain from Tenant or which the Manager may request relating to Tenant's
operations.
A. PREVAILING WAGE. Tenant shall require its contractors and all of
its subcontractors and subtenants to .pay every worker, laborer or mechanic employed
by them in the performance of the construction of improvements on the Lease
Premises prevailing wages, including fringe benefits or their cash equivalent, for the
same class and kind of work in the City and County of Denver, as determined by the
Career Service Board under the provisions of Section 20 -76 of the Denver Revised
Municipal Code. The wages shall be those prevailing at the time of the contractors
final bid, and Tenant shall require the contractor to submit with its bid the wage
schedule applicable. The contractor shall post in a prominent and easily accessible
place at the site of the improvements the scale of wages to be paid by the contractor
and all subcontractors at any tier working under the contractor. The contractor shall
furnish to the Auditor or his authorized representative, each week during which work is
in progress, a true and correct copy of the payroll records of all workers employed to
perform the work. All payroll records shall include information showing the number of
hours worked by each worker, the hourly pay of such worker, any deductions made
from pay, and the net amount of pay received by such worker for the period covered by
the payroll. The payroll record shall be accompanied by a sworn statement concerning
the records of all workers performing the work, either for the contractors or
subcontractors, that payments were made to the workers as set forth in the payroll
records, that no deductions were made other than those set forth in such records, and
that all workers were paid the prevailing wages as of the contractors final bid for the
work. Compliance with above requirements shall be deemed a work "specification" as
such word is used in Section 49 -173, Denver Revised Municipal Code. Violation of the
prevailing wage requirement and its documentation, herein above set forth, shall result
in an order from the Manager of Aviation for the work to cease until there is satisfactory
evidence that the violation has been remedied and will not recur. The issuance of a
stop -work order shall not relieve the contractors surety of any liability on the
contractor's bond or bonds, but such a stop -work order shall be deemed a default by
the contractor insofar as said surety's obligation is concerned.
B. SMALL BUSINESS OPPORTUNITY DIVISION. The Director of
the Division of Small Business Opportunity (DSBO) will review the employment
practices of Tenant's contractors and all levels of subcontractors and suppliers, and the
utilization by the contractors of Minority and Women Business Enterprises (MBE and
WBE) and /or Disadvantaged Business Enterprises (DBE), in connection with work
performed on the Lease Premises. The reviews will be made to determine whether or
not all applicable rules, regulations, ordinances, and laws governing equal employment
opportunity, affirmative action programs, and MBE, WBE and DBE requirements are
complied with.
This Lease is subject to all applicable provisions of Divisions 1 and 3 of Article III
of Chapter 28 of the City's Revised Municipal Code and the MBE and WBE Program's
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Rules and Regulations. Tenant acknowledges its continuing duty, pursuant to Denver's
MBE and WBE Ordinances, to maintain throughout the duration of the Construction
Period compliance with the level of SBE participation upon which the City approved the
award of this Lease to the Tenant, which is Ten Percent (10 %) of the construction
services component of the project.
6.13 RESTRICTION ON CHANGES AND ALTERATIONS. Tenant agrees not
to materially improve, change, alter, add to, remove or demolish all or any of the
System or Site Improvements without the prior written consent of the Manager or his
authorized representative. Tenant must comply with all conditions which may be
imposed by the Manager. Full and complete specifications for all work and material
improvements, along with a statement of the time required to complete such work shall
be submitted to and approved in writing by the Manager or his authorized
representative within fourteen (14) calendar days of submission and before construction
work commences. Four copies of plans for all changes or alterations shall be given to
the Director, Airport Engineering for review and written approval prior to
commencement of construction. After City's final approval, City shall return to Tenant
one approved copy for its records and shall retain one approved copy as an official
record thereof.
6.14 TITLE TO IMPROVEMENTS; TITLE TO SYSTEM. Tenant agrees that all
improvements to the Lease Premises or Airport property, including approved changes
and renovations, which are affixed to the realty, shall become the property of the City
upon their completion and acceptance by the City. Notwithstanding the foregoing, and
notwithstanding the System's presence as a fixture on the Lease Premises, Tenant
shall retain title to and be the legal and beneficial owner of the System, and the System
shall remain the property of Tenant or Tenant's assigns until such time as the City
purchases the System. The City consents to Tenant recording a memorandum of this
Lease in the land registry or title records of the county where the Lease Premises are
located or other applicable government office. Tenant shall be entitled to, and is hereby
authorized to, file one or more precautionary financing statements or fixture flings in
such jurisdictions as it deems appropriate with respect to the System in order to protect
Tenant's rights in the System. The City expressly denies any ownership, interest,
operation, responsibility, or liability for the installation, operation or maintenance of the
System or the Tenant's Equipment at any time during the Term.
SECTION 7
OPERATION AND USE OF LEASE PREMISES
7.01 OPERATIONS. System production and operation requirements:
A. Tenant shall use commercially reasonable efforts to operate the
System in accordance with the interconnection agreement and any Solar`Rewards SO-
REC Contract, each by and between Tenant and Public Service Co. of Colorado.
B. Upon reasonable prior written notice, duly authorized representatives
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of governmental entities shall be allowed access to the Lease Premises for inspection
purposes. Tenant agrees to obtain at its own expense, and maintain at all times, all
licenses and certificates necessary for its operations on the Lease Premises.
C. Safety and Security: The Airport requires personnel badging and
vehicle permitting pursuant to federal regulations of the Transportation Security
Administration and Federal Aviation Administration. Tenant shall be required to obtain
and pay for all required access authorizations, background checks, and badges and
permits. If required, Tenant shall establish and maintain a secured (fenced) perimeter
at its primary operations area and escort or provide escort for all vendors and suppliers
requiring access to the Lease Premises. The parties agree that no secured (fenced)
perimeter is required as of the Effective Date. Tenant reserves the right to establish
and maintain a secured (fenced) perimeter in the future should Tenant determine such
a perimeter necessary.
7.02 HOURS OF OPERATION. Except for scheduled maintenance outages
and emergency situations, Tenant agrees to keep its System in operation during all
daylight hours, unless otherwise authorized in writing by the Manager or his authorized
representative.
7.03 CARE OF AREA. Tenant agrees that it will keep the Lease Premises in a
neat, clean, safe, sanitary and orderly condition at all times, and free of all paper,
rubbish, spills, and debris. Tenant, at its own expense, shall collect and deposit all
trash and refuse at frequent intervals from the Lease Premises. Accumulation of
boxes, cartons, barrels or other similar items shall not be permitted outside enclosed
areas on the Lease Premises.
7.04 COMPLIANCE WITH ALL LAWS AND REGULATIONS: OPERATIONS.
Tenant understands that Section 6.11 applies to all actions governed by this Lease
throughout the Term, and understands that it must meet the requirements of all
applicable laws, including the Prevailing Wage ordinance and SBE and DBE
requirements.
7.05 COMPLIANCE WITH ENVIRONMENTAL REQUIREMENTS. Tenant, in
conducting any activity on the Lease Premises, shall acquire all necessary federal,
state, local and airport permits and comply with all requirements of such permits and
comply with the requirements of Exhibit F attached hereto, regarding the storage, use
and disposal of hazardous materials, petroleum products, or any other substance.
The City shall have a right of access to the Lease Premises without prior notice
to inspect the same to confirm that Tenant is using the Lease Premises in accordance
with this Lease. In the event the City's inspection of the Lease Premises reveals
evidence of a potential non - compliance with the terms of this Lease, at the City's
request, Tenant shall conduct any further testing and analysis as is necessary to
ascertain whether the Tenant is in compliance with this Lease; if such further testing
and analysis determines that Tenant is in compliance with this Lease, the City shall be
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solely responsible for all costs and expenses related to such further testing and
analysis.
7.06 STORAGE TANKS. Neither above ground nor underground storage
tanks will be permitted on the Lease Premises (this includes special enclosure
equipment).
7.07 WASTE OR IMPAIRMENT OF VALUE. Tenant agrees nothing shall be
done or kept on the Lease Premises which might impair the value of the City's property
or which would constitute waste or a public or private nuisance. The parties
acknowledge that the Lease. Premises is being used to host an electricity grid -
connected photovoltaic solar power plant.
7.08 STRUCTURAL OR ELECTRICAL OVERLOADING. Tenant agrees that
nothing shall be done or kept on the Lease Premises and no improvements, changes,
alterations, additions; maintenance or repairs shall be made to the System and any Site
Improvements which might result in an overload of utility lines serving the Airport or
interfere with electric, electronic or other equipment at the ,Airport. In the event of
violations hereof, Tenant agrees to immediately remedy the violation at Tenant's
expense, as soon as reasonably practicable once Tenant becomes aware of such
violation.
7.09 NOISE, ODORS, VIBRATIONS AND OTHER ANNOYANCES. Tenant
shall conduct its operations in an orderly and proper manner so as not to commit any
nuisance on the Lease Premises or annoy, disturb or be offensive to others at the
Airport and shall take all reasonable measures, using the latest known and practicable
devices and means, to eliminate any unusual, nauseous or objectionable noise, vapors,
odors, lights and vibrations.
7.10 ACCESSIBILITY. Tenant shall not do or permit to be done anything
which might interfere with or hinder police, firefighting, or other emergency personnel in
the discharge of their duties.
7.11 NO OTHER ENCUMBRANCES. Tenant covenants and agrees not to
encumber the Lease Premises or the City property without the prior written consent of
the Manager, and to keep the Lease Premises free from all liens and encumbrances.
SECTION 8
UTILITIES, DRAINAGE, MAINTENANCE AND SERVICES
8.01 UTILITIES. Tenant, at its sole cost and expense, shall make, obtain, and
establish all electrical interconnections with the utility system(s) in accordance with Xcel
procedures and requirements, to measure and transmit the generated power, and all
other utility connections, hook -ups or taps as necessary for the operation of the System
on the Lease Premises. Tenant shall secure all necessary applications and permits for
such connections and shall pay all application and permit fees, hook -up or tap fees.
Tenant further agrees at its sole cost and expense to provide meters adequate and
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required to measure the amount of generated power and utilities used or consumed by
the City and to maintain said equipment in such a manner as to supply accurate
measurements of such transmission to, and usage, and consumption by, the City.
8.02 DRAINAGE. Tenant shall either be responsible for detaining on the
Lease Premises the developed flow from its improvements and discharging such flow at
its historic rate or constructing offsite detention ponds at a location acceptable to the
Manager and Tenant shall maintain such drainage facilities. Tenant agrees to insure
that an agreement for drainage crossing or slope created by Tenant's construction and
any discharge point from the Land shall be constructed with capacity to pass storm
from the one - hundred (100) year developed flow with adequate freeboard in
accordance with the requirements of Urban Drainage and Flood Control District and the
City. Tenant shall keep such drainageways clear of debris and obstructions and
maintain them in good condition for the passage of the required flow and avoid erosion
degradation.
8.03 MAINTENANCE. The cost of maintenance, care and any necessary
replacement of the System and Site Improvements shall be borne by Tenant. Tenant
agrees, at its expense and without cost or expense to the City, during the Term hereof
that:
A. Tenant shall keep the System and Site Improvements in good order
and condition and will make all necessary and appropriate repairs and replacements
thereof promptly and in a good and workmanlike fashion without diminishing the original
quality of such improvements;
B. Tenant shall not permit rubbish, debris, waste materials or anything
unsightly or detrimental to health, or likely to create a fire hazard, or conducive to
deterioration, to remain on any part of the Lease Premises or to be disposed of
improperly.
C. Tenant shall provide and maintain obstruction lights and all similar
equipment or devices now or at any time required by any applicable law, ordinance or
municipal, state or federal regulation.
D. Tenant shall be responsible for the removal of snow and ice on the
Lease Premises and on access road improvements solely to the extent Tenant needs
to use the access road improvement in order to access the Lease Premises.
E. Tenant shall be responsible for the maintenance, replacement and
upkeep of the grass, shrubs, trees and all landscaped areas on the Lease Premises.
F. The Manager or his authorized representative shall have the right to
make reasonable objections regarding the maintenance and appearance of the Lease
Premises. Tenant agrees to promptly discontinue or remedy any reasonably
objectionable condition within five (5) days after written notice by the Manager or his
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authorized representative.
8.04 COMMON USE SERVICES. The Manager may establish common use
services at the Airport, including but not limited to trash and refuse removal, deliveries,
industrial waste handling, recycling, and security guards. The Manager reserve the
right to establish charges for common use services based upon documented actual
costs. Trash, sewer, and deliveries will be common use services which Tenant may be
required to use and pay its prorata actual share; however, other common use services
may be utilized at Tenant's option. Tenant agrees to pay the charges for those common
use services which are utilized by Tenant.
8.05 INTERRUPTION OF SERVICES. Tenant agrees that the City shall not be
liable for failure to supply any utility services. The City reserves the right to temporarily
discontinue utility services at such time as may be necessary by reason of accident,
unavailability of employees, repairs, alterations or improvements or whenever by reason
of strikes, lockouts, riots, acts of God or any other happenings beyond the control of the
City. The City shall not be liable for damages to persons or property for any such
discontinuance, nor shall such discontinuance in any way be construed as cause for
abatement of rent or operate to release the Tenant from any of its obligations
hereunder, except as otherwise provided in Section 11.
SECTION 9
INSURANCE; PERSONAL LIABILITY; TAXES
9.01 INSURANCE. Tenant further agrees to secure at its own expense, and to
keep in force at all times during the Term hereof, insurance for general and professional
liability, automobile, and worker's compensation in the amounts and on the form of
insurance certificate specified on the attached Exhibit D.
Each such policy or certificate shall contain a valid provision or endorsement that
the policy may not be canceled, terminated, materially changed or modified without 30
days prior written notice thereof having been given by certified mail, return receipt
requested, to the Manager of Aviation, Airport Office Building, Denver International
Airport, 8500 Pena Boulevard, Denver, Colorado 80249 -6340.
Each such policy or certificate shall further provide that any coverage afforded
the City and County of Denver as an additional insured under the policies shall apply as
primary insurance and any other insurance issued to the City and County of Denver
shall apply as excess and noncontributing insurance. In addition, a waiver of
subrogation in favor of the City shall be attached to each of the policies. Tenant shall
include as insureds under its policies all subcontractors, if any, or shall furnish separate
certificates and endorsements for each subcontractor, if any. All coverage for
subcontractors, if any, shall be subject to all of the requirements stated herein.
9.03 NO PERSONAL LIABILITY. No employee of the City shall be held
personally liable under this Lease or because of its execution or attempted execution.
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9.04 TAXES, LICENSES, LIENS AND FEES. Tenant shall timely pay all
personal property taxes, possessory interest taxes, business or license taxes or fees,
service payments in lieu of such taxes or fees, annual or periodic license or use fees,
excises, assessments, bonds, levies, fees or charges of any kind which are assessed,
levied, charged, confirmed, or imposed by any public authority due to Tenant
occupancy and use of the Lease Premises (or any portion or component thereof).
Tenant also agrees not to permit any mechanic's or materialman's or any other lien to
become attached or be foreclosed upon the Land, the Lease Premises or
improvements thereto, or any part thereof, by reason of any construction work or labor
performed or materials furnished by any mechanic or materialman. Tenant agrees to
furnish to the Manager, upon request, duplicate receipts or other satisfactory evidence
showing the prompt payment by it of Social Security, unemployment insurance and
worker's compensation insurance, and—all required licenses and all taxes. Tenant
further agrees to promptly pay when due all bills, debts and obligations incurred by it in
connection with its operations hereunder and not to permit the same to become
delinquent and to suffer no lien, encumbrance, judgment or execution to be filed against
the Lease Premises or improvements thereon which will in any way impair the rights of
the City under this Lease.
SECTION 10
DEFAULT AND REMEDIES
10.01 TENANT DEFAULT. Tenant shall be in default under this Lease if
Tenant:
A. Fails to timely pay within thirty (30) days after such amount is due
to the City the compensation, rent or any other payment required hereunder; or
B. Becomes insolvent, or takes the benefit of any present or future
insolvency or bankruptcy statute, or makes a general assignment for the benefit of
creditors, or consents to the appointment of a receiver, trustee or liquidator of any or
substantially all of its property; or
C. Transfers its interest under this Lease, without the prior written
approval of the City, by reason of death, operation of law, assignment, sublease or
otherwise, to any other person, entity or corporation with the exception of permitted
assignments under Section 12.05; or
D. Abandons, deserts or vacates the Lease Premises; or
E. Suffers any lien or attachment to be filed against the Lease
Premises, the Airport or the City's property because of any act or omission of Tenant,
and such lien or attachment is not discharged or contested by Tenant in good faith by
proper legal proceedings within twenty (20) days after receipt of notice thereof by
Tenant; or
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F. Fails to keep, perform and observe any other promise, covenant or
agreement set forth in this Lease and such failure continues for a period of more than
thirty (30) days after delivery by Manager of a written notice of such breach or default,
except where a shorter period is specified herein, or where fulfillment of its obligation
requires activity over a period of time and Tenant within ten (10) days of notice
commences in good faith to perform whatever may be required to correct its failure to
perform and continues such performance without interruption except for causes beyond
its control: or
G. Gives its permission to any person to use for any illegal purpose
any portion of the Airport made available to Tenant for its use under this Lease.
10.02 REMEDIES FOR THE CITY. If Tenant defaults in any of the covenants,
terms and conditions herein, the City may exercise any one or more of the following
remedies:
A. The City may elect to allow this Lease to continue in full force and
effect and to enforce all of the City's rights and remedies hereunder, including without
limitation the right to collect rent as it becomes due together with Past Due Interest: or
B. The City may cancel and terminate this Lease and repossess the
Lease Premises, with process of law, and without liability for so doing, upon giving thirty
(30) days written notice to Tenant of its intention to terminate, at the end of which time
all the rights hereunder of the Tenant shall terminate, unless the default, which shall
have been stated in such notice, shall have been cured within such thirty (30) days.
Notwithstanding the foregoing, Tenant shall be allowed only two notices of default
hereunder which it may cure within the thirty (30) day time specified in this section. The
third and any additional notice thereafter shall be cured by Tenant within fifteen (15)
days and if Tenant fails to cure within such time frame, then the City at its sole option
may (1) cancel and terminate all of the rights hereunder of the Tenant, and the City
may, upon the date specified in such notice, reenter the Lease Premises and remove
therefrom all property of the Tenant and store the same at the expense of the Tenant,
or (2) elect to proceed under subparagraph C. below.
If the City elects to terminate, Tenant shall be liable to the City for all amounts
owing at the time of termination, including but not limited to rent due plus interest
thereon at the Past Due Interest Rate together with any other amount to fully
compensate the City for all loss of rent, damages, and costs, including attorney's fees,
caused by Tenant's failure to perform its obligations hereunder, or which in the ordinary
course would likely result therefrom.
C. The City may elect to reenter and take possession of the Lease
Premises and expel Tenant or any person claiming under Tenant subject to the time
period set forth in Section 10.01(F), and remove all effects as may be necessary,
without prejudice to any remedies for damages or breach. Such reentry shall not be
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construed as termination of this Lease unless a written notice specifically so states;
however, the City reserves the right to terminate the Lease at any time after reentry.
Following reentry, the City may relet the Lease Premises, or any portion thereof, for the
account of Tenant, on such terms and conditions as the City may choose, and may
make such repairs or improvements as it deems appropriate to accomplish the reletting.
The City shall not be responsible for any failure to relet or any failure to collect rent due
for such reletting; however, the City agrees to make such efforts to relet as are
consistent with state law in Colorado.
Tenant shall be liable to the City for all costs of reletting, including attorney's fees
and repairs or improvements. Notwithstanding re -entry by the City, Tenant shall
continue to be liable for all amounts due as rent under this Lease, on the dates
specified and in such amounts as would be payable if default had not occurred. Upon
expiration of the Term, or any earlier termination of the Lease by the City, the City,
having credited to the account of Tenant any amounts recovered through reletting, shall
refund, without interest, any amount which exceeds the rent, damages, and costs
payable by Tenant under this Lease.
10.03 CROSS DEFAULT WITH POWER PURCHASE AGREEMENT.
Notwithstanding anything to the contrary under this Lease or the Power Purchase
Agreement, if the City fails to timely pay any amounts due under the Power Purchase
Agreement for six (6) months after such amount is due to Tenant, Tenant shall have the
right, but not the obligation, to terminate this Lease and the Power Purchase
Agreement, and to compel the City to purchase the System from the Tenant by paying
the greater of the then Fair Market Value or Buyout Price set forth in attached Exhibit C,
in accordance with Section 4.05.
10.04 REMEDIES CUMULATIVE. The remedies provided in this Lease shall be
cumulative and shall in no way affect any other remedy available under law or equity.
10.05 ADMINISTRATIVE HEARING. Disputes arising out of this Lease shall be
resolved by administrative hearing before the Manager following the procedures
outlined in Denver Revised Municipal Code Section 5 -17; provided, that the City shall
retain its right to obtain an order of eviction in accordance with applicable slate law. It is
further agreed that no cause of action shall be brought against the City until there has
been full compliance with the terms of this paragraph.
10.06 WAIVERS. The waiver by either party of any breach of any term,
condition, or provision herein contained shall not be deemed to be a waiver of such
term, condition, or provision, or any subsequent breach of the same, or any other term,
condition, or provision contained herein.
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SECTION 11
DAMAGE, DESTRUCTION OR LOSS
11.01 DAMAGE TO OR DESTRUCTION OF LEASE PREMISES. If the System
and any Site Improvements, or any portion thereof, are destroyed or damaged by fire,
the elements or such other cataclysmic event, the Tenant shall promptly remove all
debris resulting from such damage to the System and any Site Improvements and at its
sole discretion, may repair and /or reconstruct the System and any Site Improvements
with due diligence, at its sole cost and expense, in accordance with the plans and
specifications for the Lease Premises as they existed prior to such damage or in
accordance with the current needs of the Tenant as approved by the Manager.
11.02 LOSS OR DAMAGE TO PROPERTY. Neither party shall be liable for any
loss of property by theft or burglary from the Airport or for any damage to person or
property on the Airport resulting from electric lighting, or water, rain or snow, which may
come into or issue or flow from any part of the Airport or Airport Site, or from the pipes
thereof, or that may be caused by a party's employees or any other cause, and each
party agrees to make no claim for any such loss or damage at any time.
11.03 RELEASE OF CITY. The parties hereto agree that neither party shall be
liable to the other party for any injury to or death of any of either party's agents,
representatives or employees or of any other person or for any damage to any of such
party's property or loss of revenue caused by any third person in the maintenance,
construction, or operation of facilities at the Airport, or caused by any third person using
the Airport, or caused by any third person navigating any aircraft on or over the Airport,
whether such injury, death or damage is due to negligence or otherwise.
11.04 MUTUAL WAIVER/INSURANCE COVERAGE.. The City and Tenant
each waive any and every claim for recovery from the other for any and all loss of or
damage to the Lease Premises or to the contents thereof, which loss or damage is
covered by valid and collectible fire and extended insurance policies, to the extent that
such loss or damage is recoverable under such insurance policies. Since this mutual
waiver will preclude the assignment of any such claim by subrogation or otherwise to an
insurance company or any other person, Tenant agrees to give to each insurance
company which has issued, or may issue, to the Tenant policies of fire and extended
coverage insurance, written notice of the terms of this mutual waiver, and to have such
insurance policies properly endorsed, if necessary, to prevent the invalidation of the
insurance coverage by reason of this waiver.
SECTION 12
MISCELLANEOUS PROVISIONS
12.01 ADVERTISING AND PUBLIC DISPLAYS. Tenant shall not install or have
installed or allow to be installed upon or within the Lease Premises, without the prior
written approval of the Manager or his authorized representative, any sign on the Land
which is visible to the exterior of the buildings or on the Land, either lighted or unlighted,
static or animated, poster, banners or other display of advertising media, including
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material supplied by manufacturers of merchandise offered for sale, as well as other
types of display specified in the DIA Design Standards. Permission will not be granted
for any advertising which fails to comply with DIA Design Standards or DIA
Development Guidelines, or any advertising material, fixture or equipment which
extends beyond the Lease Premises.
12.02 AGREEMENT BINDING UPON SUCCESSORS. This Lease, subject to
the provisions of the section entitled "Assignment, "; shall be binding upon and extend to
the heirs, personal representatives, successors and assigns of the respective parties
hereto.
12.03 AGREEMENT MADE IN COLORADO. This Lease shall be deemed to
have been made in and shall be construed in accordance with the laws of the State of
Colorado.
12.04 AGREEMENT SUBORDINATE TO AGREEMENTS WITH UNITED
STATES. This Lease is subject and subordinate to the terms, reservations, restrictions
and conditions of any existing or future agreements between the City and the United
States, the execution of which has been or may be required as a condition precedent to
the transfer of federal rights or property to the City for Airport purposes and the
expenditure of federal funds for the development of the Airport or airport system. The
provisions of the attached Appendices 1, 2 and 3 are incorporated herein by this
reference.
12.05 ASSIGNMENT.
A. Neither party shall have the right to assign any of its rights, duties or
obligations under this Lease without the prior written consent of the other party, which
consent may not be unreasonably withheld or delayed. Notwithstanding the foregoing,
the Tenant may assign any of its rights, duties or obligations under this Lease (i) to one
or more of its affiliates, (ii) to one or more affiliates or third parties in connection with a
sale- and - leaseback or other financing transaction, (iii) to any present or future
purchaser of the power generated by the System, (iv) to any person or entity
succeeding to all or substantially all of the assets of the Tenant, or (v) to a successor
entity in a merger or acquisition transaction.
B. With respect to an assignment pursuant to clause (ii) in the immediately
preceding sentence, the City acknowledges and agrees that, upon receipt of written
direction by a financing- transaction assignee of the Tenant ( "Lender"), and
notwithstanding any instructions to the contrary from the Tenant, the City will recognize
Lender, or any third party to whom Lender has reassigned the rights of the Tenant
under this Lease, as the proper and lawful lessee of the Lease Premises and as the
proper and lawful successor to the Tenant with respect to access to the Lease
Premises across or through the Land and fully entitled to receive the rights and benefits
of the Tenant hereunder so long as Lender (or its assignee) performs the obligations of
the Tenant hereunder. The City shall be protected and shall incur no liability in acting
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or proceeding in good faith upon any such foregoing written notice and direction by
Lender which the City shall in good faith believe (a) to be genuine and (b) a copy of
which shall have been delivered to the Tenant. The City shall be under no duty to
make any investigation or inquiry as to any statements contained or matters referred to
in any such foregoing notice and direction, but may accept and rely upon them as
conclusive evidence of the truth and accuracy of such statements.
In addition, the City agrees and consents as follows
(i) The City agrees to notify Lender in writing, at the address to be
designated by Lender upon not less than five (5) business days written notice to
the City prior to any notice by the City hereunder, of any act or event of default of
the Tenant under the Lease of which the City has knowledge that would entitle
the City to cancel, terminate, annul, or modify the Lease or dispossess or evict
the Tenant from the Lease Premises or otherwise proceed with enforcement
remedies against the Tenant, and Lender shall have the same amount of time as
the Tenant, but at least ten (10) days with respect to any monetary default and at
least thirty (30) days with respect to any non - monetary default, to cure any
default by the Tenant under the Lease; provided that in no event shall Lender be
obligated to cure any such default.
(ii) Notwithstanding that the System is a fixture on the Lease Premises, and
subject to the terms and conditions hereof, the City hereby subordinates any lien
it may have in and to the property used by the Tenant in the conduct of its
business and which is or may from time to time hereafter be located at the Lease
Premises; and to which the Tenant has granted or will grant a security interest to
Lender (all such property and the records relating thereto shall be hereafter
called the "Collateral') to the lien of Lender; provided, however, that this
subordination shall not prevent the City from exercising any right or remedy
against the Tenant to which the City may be entitled under the terms of the
Lease or as may be provided by applicable law, nor shall it prevent the City from
exercising any lien it may have on any property of the Tenant, including the
Collateral, so long as the City recognizes Lender's prior right to the Collateral
described above. The City recognizes and acknowledges that any claim or
claims ( "Claims') that Lender has or may have against such Collateral by virtue
of any lien or security interest, is superior to any lien, security interest, or claim of
any nature which the City now has or may hereafter have to such Collateral by
statute, agreement or otherwise. The subordination of lien provided for herein
shall be effective until the discharge of the Claims, The City further agrees to
notify any purchaser of the Lease Premises, and any subsequent mortgagee or
other encumbrance holder, of the existence of the foregoing waiver of the City's
lien, which shall be binding upon the executors, administrators, successors and
transferees of the City, and shall inure to the benefit of the successors and
assigns of Lender.
The City consents to Lender's security interest in the Collateral and
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waives all right of levy for rent and all claims and demands of every kind against
the Collateral, such waiver to continue so long as any sum remains owing from
the Tenant to the Lender. The City agrees that the Collateral shall not be subject
to distraint or execution by, or to any claim of, the City.
(iv) The City hereby consents to Lender accessing the Lease Premises and
the Land for the purpose of inspecting the Collateral.
12.06 BOND ORDINANCES. This Lease is in all respects subject and
subordinate to any and all the City bond ordinances applicable to the Airport and airport
system and to any other bond ordinances which should amend, supplement or replace
such bond ordinances. The parties to this Lease acknowledge and agree that all
property subject to this Lease which was financed by the net proceeds of lax- exempt
bonds is owned by the City, and Tenant agrees not to take any action that would impair,
or omit to take any action required to confirm, the treatment of such property as owned
by the City for purposes of Section 142(b) of the Internal Revenue Code of 1986, as
amended. In particular, the Tenant agrees to make, and hereby makes, an irrevocable
election (binding on itself and all successors in interest under this Lease) not to claim
depreciation or an investment credit with respect to any property subject to this Lease
which was financed by the net proceeds of tax - exempt bonds and shall execute such
forms and take such other action as the City may request in order to implement such
election.
12.07 FORCE MAJEURE. Neither party hereto shall be liable to the other for
any failure, delay or interruption in the performance of any of the terms, covenants or
conditions of this Lease to the extent such failure, delay or interruption is due to causes
which were not reasonably foreseeable and beyond the control of that party, including
without limitation strikes, boycotts, labor disputes, embargoes, shortages of materials,
acts of God, acts of the public enemy, acts of superior governmental authority, weather
conditions, floods, riots, rebellion, sabotage or any other circumstance for which such
party is not responsible or which is not in its power to control, but in no event shall this
paragraph be construed so as to allow Tenant to reduce or abate its obligation to pay
the rent or compensation as provided herein.
12.08 INCONVENIENCES DURING CONSTRUCTION. Tenant recognizes that
from time to time during the Term, it may be necessary for the City to commence or
complete extensive programs of construction, expansion, relocation, maintenance and
repair in order that the Airport and its facilities may be completed and operated in
accordance with any present or future master layout plan, and that such construction,
expansion, relocation, maintenance and repair may inconvenience the Tenant in its
operation at the Airport. Tenant agrees that no liability shall attach to the City, its
officers, agents, employees, contractors, subcontractors and representatives by way of
such inconveniences, and Tenant waives any right to claim damages or other
consideration therefrom.
12.09 INDEPENDENT CONTRACTOR. The parties agree that Tenant shall at
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all times have the status of an independent contractor without the right or authority to
impose tort or contractual liability upon the City. Nothing in this Lease shall be
construed to mean or imply that Tenant is a partner, joint venturer, agent or
representative of, or otherwise associated with, the City. Neither the City nor Tenant
shall represent to others that one party is a partner, joint venturer, agent or
representative of, or otherwise associated with, the other party.
12.10 NOTICES. All notices required to be given to the City or Tenant
hereunder shall be in writing and sent by certified mail, return receipt requested, to:
City: Manager of Aviation
Denver International Airport
8500 Pena Boulevard, 9th Floor
Denver, Colorado 80249 -2065
with a copy to: Airport Property Office
Denver International Airport
8500 Pena Boulevard, Rm. 9870
Denver, Colorado 80249 -2065
Tenant: Solar Rep
XYZ Solar
Somewhere
Denver, CO
XYX email
333 - 333 -3333 (o)
333- 444 -4444 (c)
Either party hereto may designate in writing from time to time the address of substitute
or supplementary persons to receive such notices. The effective date of service of any
such notice shall be the third day from the date such notice is mailed to Tenant or
Manager.
12.11 PARAGRAPH HEADINGS. The paragraph headings herein are for
convenience in reference only and are not intended to define or limit the scope of any
provision of this Lease.
12.12 PATENTS AND TRADEMARKS. Tenant represents that it is the owner of
or fully authorized to use any and all services, processes, machines, articles, marks,
names or slogans used by it in its operations under this Lease.
12.13 SECURITY. Tenant shall cause its officers, contractors, agents and
employees to comply with any and all existing and future security regulations adopted
by the City pursuant to regulations of the Transportation Security Administration and
Federal Aviation Administration, as they may be amended from time to time.
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12.14 SEVERABILITY. If any provision in this Lease is held by a court to be
invalid, the validity of other provisions herein which are severable shall be unaffected.
12.15 THIRD PARTIES. This Lease shall not be deemed to confer upon any
third party or parties (except parties to whom the Tenant may assign this Lease in
accordance with the terms hereof, and except any successor to the City) any right to
claim damages or to bring any action or proceeding against either the City or the
Tenant because of any breach hereof or because of any of the terms, covenants,
agreements and conditions herein.
12.16 USE, POSSESSION OR SALE OF ALCOHOL OR DRUGS. Tenant, its
officers, agents, and employees shall cooperate and comply with the provisions of the
Federal Drug -Free Workplace Act of 1988 and Denver Executive Order No. 94, or any
successor thereto, concerning the use, possession or sale of alcohol or drugs.
Violation of these provisions or refusal to cooperate with implementation of the policy
can result in the City's barring Tenant from the City facilities or participating in City
operations.
12.17 CITY SMOKING POLICY. Tenant acknowledges that smoking is not
permitted in Airport buildings and facilities except for designated Airport Smoking
Concessions, and so agrees that it will prohibit smoking by its employees and the public
in indoor areas and within 15 feet of entryways.
12.18 NONDISCRIMINATION. In connection with the performance of work
under this Lease, Tenant agrees not to refuse to hire, discharge, promote or demote, or
to discriminate in matters of compensation against any person otherwise qualified,
solely because of race, color, religion, national origin, gender, age, military status,
sexual orientation, marital status, or physical or mental disability; and Tenant further
agrees to insert the foregoing provision in all subcontracts hereunder.
12.19 ENTIRE AGREEMENT. The parties agree that the provisions herein
constitute the entire agreement and that all representations made by any officer, agent
or employee of the respective parties unless included herein are null and void and of no
effect. No amendments, unless expressly reserved to the Manager herein, shall be
valid unless executed by an instrument in writing by all the parties with the same
formality as this Lease.
12.20 FINAL APPROVAL. This Lease is expressly subject to and shall not be
or become effective or binding on either party until approved by the City Council and
fully executed by all signatories hereto, including all signatories of the City and County
of Denver.
[END OF DOCUMENT]
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FAA Solar Guide Appendix C. Private Developer Ground Lease
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.
ATTEST:
CITY AND COUNTY OF DENVER
By
Mayor
STEPHANIE Y. O'MALLEY, Clerk and
Recorder, Ex- officio Clerk of the
City and County of Denver RECOMMENDED AND APPROVED:
Manager of Aviation
APPROVED AS TO FORM:
DAVID R. FINE, City Attorney REGISTERED AND COUNTERSIGNED:
for the City and County of Denver
By
Manager of Finance
By
Assistant City Attorney Contract Control Number:
ATTEST:
By:
By
Auditor
"CITY"
PARTY OF THE FIRST PART
XYZ Solar
A Delaware limited liability company
29
By:
Chief Executive Officer
PARTY OF THE SECOND PART
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FAA Solar Guide Appendix C. Private Developer Ground Lease
EXHIBIT A
LEGAL DESCRIPTION
[To be provided]
Exhibit A to Graand Lease Agreement
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FAA Solar Guide Appendix C. Private Developer Ground Lease
EXHIBIT B
SITE PLAN FOR DEMISED PREMISES AND S1TE IMPROVEMENTS
6 , n es
(;. e /10
rs-
0
ETd101a Gf Nd LM*AyNTIY
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FAA Solar Guide Appendix C. Private Developer Ground Lease
EXHIBIT C
PURCHASE OPTION SUMMARY SHEET
BEGINNING OF YEAR
_ -. 1 - -_
2
AMOUNT
$10000000
$10,000,000
3
$10.000.000
4
S10 000 000
5
S10 000 0DO
8
$5,200,000
7
77
8
9
10
11
12
13
14
15
18
17
18
19
20
21
22
23
24
25
Exhibit C to Grand Leese Agreement
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EXHIBIT D
INSURANCE CERTIFICATE
[DIA TO PROVIDE]
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FAA Solar Guide Appendix C. Private Developer Ground Lease
EXHIBIT E
DESIGN STANDARDS, CONSTRUCTION PROCEDURES and DIA
PERFORMANCE SPECIFICATIONS
Section 1. Design Standards. The Tenant agrees to use and comply with the Denver
International Airport Design Standards Manuals for design of any improvements to the
facility. The Tenant further agrees to design and construct such improvements in
accordance with the Denver International Airport Tenant Development Guidelines
(TDGs), as they may be amended from time to time, and any other applicable design,
construction, and maintenance standards.
All design drawings submitted by the Tenant to the City shall be provided in the latest
release of AutoCAD format in accordance with the City's Design Standards Manual.
Approval of the City's Designated Representative (City) shall extend to and include
consideration of architectural and aesthetic matters and the City reserves the right to
reject any designs submitted and to require the Tenant to resubmit designs and layout
proposals until they meet with the City's approval. If any portion of the plans and
specifications is disapproved by the City, the Tenant shall promptly submit necessary
modifications and revisions thereof.
Section 2. Construction Procedures.
A. Compliance with standards: All construction work shall comply with the
requirements of and standards established by the City and all other appropriate
governmental agencies and entities. The City shall at all times have the right to
monitor and inspect any construction to assure that the improvements are
constructed and installed in compliance with the Plans and Specifications.
B. Submissions required: To assist the City in monitoring and inspecting such
construction, the Tenant's contractor(s) or subcontractor(s) shall submit, or
cause to be submitted to the City, for information and record purposes, copies of
all the following:
(i) field test reports;
(ii) material certificates;
(iii) approved shop drawings to be reviewed for compliance with the Airport
design and construction standards;
(iv) requests for payment to contractors or subcontractors;
(v) progress reports;
(vi) notification of substantial completion of the leased facilities and all site
improvements and final acceptance thereof;
(vii) two copies of maintenance and operation manuals in connection with
building systems and all updates thereof,
(viii) as- constructed drawings, and
Exhibit E to Ground Lease Agreement
C -39
FAA Solar Guide Appendix C. Private Developer Ground Lease
(ix) any other documents related to the construction of the improvements
which may be reasonably requested by the City.
C. SOW Changes: No change order which materially changes the scope of the
work shall be effected by the Tenant without the approval of the City, whose
approval shall not be unreasonably withheld. The City will approve, conditionally
approve, or disapprove submissions of change orders which materially change
the scope of the work within a reasonable period of time following receipt
thereof: Any conditional approval or disapproval shall be accompanied by an
explanation as to the reason for the condition.
D. City Inspection: All construction work, materials, and installations involved
in or incidental to the construction of the improvements undertaken by the
Tenant throughout the term hereof shall be subject at all times to inspection and
approval by the City.
E. Advance Notice of Modification: The Tenant shall give or cause to be
given to the City advance notice before performing any material modification to
the improvements.
F. Compliance with Plans: The Tenant shall cause all construction work,
workmanship, materials, and installations to be in full compliance with plans and
specifications. The City shall have the right to halt construction of the
improvements at any time if such construction is at material variance from the
Plans and Specifications until such variance is corrected, or if such construction
poses an immediate safety hazard at the Airport, until such safety hazard is
eliminated. The City shall cooperate and use its best efforts to alleviate and
resolve any such variance or impediment to the safe operation of the Airport so
as to permit continued construction as expeditiously as possible.
G. Utilities: The Tenant shall perform utility location identification prior to any
excavation activities. In addition, Tenant shall obtain such utility connections or
hook -ups as shall be necessary and shall have the right to receive all necessary
utilities and services, and shall secure all necessary applications and permits
and shall pay all application and permit fees, hook -up and all other user charges
of whatever nature occasioned thereby, except tap and developer fees. The
Tenant further agrees to provide meters adequate to measure the amount of
utilities and water used or consumed and to maintain said equipment in such a
manner as to supply accurate measurement of such usage and consumption.
H. Wages: The Tenant shall include in its agreements with its general
contractors covenants that require the construction contractor and its
subcontractors of any tier to pay all workers, mechanics, and laborers in
accordance with the "Agreement of Fair Employment and Work Stabilization for
New Denver Airport." which agreement provides for payment according to rates
Exhibit E to Ground Lease Agreement
C40
FAA Solar Guide Appendix C. Private Developer Ground Lease
and classifications established under the federal Davis -Bacon Act and Denver
Revised Municipal Code Section 20 -76, whichever is greater. The Tenant further
agrees, if requested by the City, to fully comply with the procedural requirements
of Denver Revised Municipal Code Section 20 -76 by requiring its general
contractors and their subcontractors of any tier to submit to the City true and
correct copies of the payroll records of all workers, laborers, and mechanics
employed.
I. Expense of Alterations. Any work necessary to make any alterations,
improvements, or additions to the facility throughout the Term shall be done at
the Tenant's cost and expense, in accordance with and subject to all of the
required approvals, submittals, and procedures, and all other requirements of
whatsoever nature, as set forth herein.
J. Documents on Completion: Upon completion of such work, the Tenant
shall deliver to the City revised as- constructed drawings, evidence of payment,
contractor's affidavits, and full and final waivers of any liens for labor, services, or
materials. The Tenant shall include in its agreement with its contractors
provisions whereby such contractors shall defend and hold the City harmless
from all costs, damages, liens, and expenses related to such work.
L. As- Builts: Within sixty (60) days after completion of construction of the
improvements, the Tenant shall furnish to the City two sets of as- constructed
drawings, in the latest release of AutoCAD, showing in detail all construction,
including the locations of all underground and above ground utility lines.
K. Standard of Performance: All work done by the Tenant or its contractors
shall be done in a first -class workmanlike manner using only good grades of
materials and shall comply with all insurance requirements and all applicable
laws and ordinances and rules and regulations of governmental departments or
agencies. Whenever a conflict arises between State or local law, ordinances or
regulations and Federal law or regulations, Federal law or regulations applicable
to this agreement shall control.
Exhibit E to Ground Lease Agreement
C-41
FAA Solar Guide Appendix C. Private Developer Ground Lease
EXHIBIT F
DIA ENVIRONMENTAL REQUIREMENTS
Section 1. General Requirements. Tenant, in conducting any activity on DIA
property, shall comply with all applicable airport, local, slate, and federal rules,
regulations, statutes, laws, and orders (Environmental Requirements) and the
applicable Environmental Guidelines developed for DIA's Environmental Management
System (EMS), as summarized in DIA Rules and Regulations Part 180. DIA's
Environmental Guidelines, Environmental Policy, and all Rules and Regulations are
available at www.flydenver.com /biz /index.asp. These Environmental Requirements
address, but are not limited to, requirements regarding the storage, use, and disposal of
Hazardous Materials, solid and hazardous waste, or petroleum products; the National
Environmental Policy Act (NEPA); and other federal, state, and local water, wastewater,
and air quality regulations.
A. EMS: DIA's EMS has been certified to the ISO 14001 standard. DIA's EMS
includes the above -noted airport -wide Environmental Policy and is designed
around the significant aspects identified in DIA Rule and Regulation 180. It is a
requirement of the standard that all entities providing products, goods, and /or
services on behalf of DIA ensure that their personnel are aware of DIA's
Environmental Policy, DIA's significant environmental aspects, and the specific
environmental aspects and associated impacts for the products, goods, and /or
services that will be provided by the Tenant.
B. Permits: Tenant shall acquire all necessary federal, state, local, and airport
permits /approvals and comply with all permit /approval requirements necessary
for its activities on the Lease Premises. Tenant shall prepare and update all
plans and provide all information required by the City for regulatory compliance
purposes.
C. Hazardous Materials Limited: Any hazardous materials not reasonably
necessary for Tenant's operations are barred from DIA premises. Tenant shall
identify all hazardous materials to be used at DIA along with a description of how
these materials and any associated hazardous or other waste materials
generated by Tenant will be managed while on airport property. This information
is required prior to the Tenant conducting activities on DIA property.
D. MSDSs: Prior to operation, Tenant shall provide to the City copies of
Material Safety Data Sheets (MSDSs) for all chemicals to be used in their
activities, including those used for cleaning and maintenance. This obligation is
continuing for the Term, and Tenant shall provide updated MSDSs and MSDSs
for new chemicals, as such information is updated and as new chemicals are
placed into use, as applicable.
Exhibit Fto Ground Lease Agreement
C42
FAA Solar Guide Appendix C. Private Developer Ground Lease
E. Pollution Prevention: Tenant is encouraged to utilize the concepts of
pollution prevention, energy efficiency, and waste minimization with regard to its
activities at DIA.
Section 2. Review of Environmental Documents. Tenant, at the request of the
City, shall make available for inspection and copying, upon reasonable notice and at
reasonable times, any or all of the documents and materials that the Tenant has
prepared pursuant to any Environmental Requirement hereunder or submitted to any
governmental or regulatory agency. If there is a requirement to file any notice or report
of a release or threatened release of a substance on, under, or about the work
conducted on DIA property. Tenant shall provide a copy of such report or notice to the
City.
Section 3. Access for Environmental Inspection. The City shall have an
unimpeded right of access to the occupancy or work areas with reasonable prior notice
to Tenant to inspect the same in order to confirm that Tenant is conducting its activities
in accordance with this Lease. In the event the City's inspection of the Lease Premises
reveals evidence of a potential non- compliance with the terms of this Lease, at the
City's request, Tenant shall conduct any testing and analysis at its cost as is necessary
to ascertain whether the Tenant is in compliance with this Lease. If such further testing
and analysis determines that Tenant is incompliance with this Lease, the City shall be
solely responsible for all costs and expenses related to such further testing and
analysis.
Section 4. Correction of Environmental Non - Compliance. If the Tenant fails to
comply with any applicable Environmental Requirement and such non - compliance
continues uncorrected for thirty (30) days after written notice to Tenant, the City, in
addition to its rights and remedies described elsewhere in this Lease, at its election,
may enter the facility and/or work area and take such measures as may be necessary
to ensure compliance with the Environmental Requirements, all at the Tenant's
expense.
Section 5. Duty to Notify City. In the event of a release or threatened release of a
substance in excess of acceptable levels established by applicable law and relating to
or arising out of the Tenant's use or activities on DIA, or in the event any claim,
demand, cause of action, or notice is made against the Tenant with regard to the
Tenant's failure or alleged failure to comply with any requirement hereunder, the
Tenant, immediately shall notify the City verbally by contacting the Airport
Communications Center (303- 342 -4200) and the appropriate regulatory agency.
Tenant shall immediately control and remediate the contaminated media and, as
provided below, follow -up Tenant's verbal notice with a written report within three days
of such incident. In addition, the Tenant shall provide the City, at Tenant's expense,
with copies of any written claims, demands, notices or actions so made.
Exhibit Fto Ground Lease Agreement
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FAA Solar Guide Appendix C. Private Developer Ground Lease
Section 6. Environmental Remediation. Tenant shall undertake all actions
necessary to remedy or remove any released or spilled materials in excess of
acceptable levels established by applicable law and any other contamination
discovered on or under DIA property introduced by Tenant and shall restore the Access
Premises to its condition immediately prior to the initiation of this Lease in compliance
with all applicable local, state, federal, or airport laws, rules, regulations, or orders. This
work shall be performed at Tenant's expense and the City shall have the right to review
the project plan and review and inspect all such work at any time using consultants and
representatives of the City's choice. Tenant shall further conduct surface and
subsurface monitoring pertaining to Tenant's activities hereunder to ensure compliance
with applicable laws, rules, regulations, and permits.
Section 7. Environmental Requirements for Construction. Tenant agrees to
ensure that its premises are designed, constructed, operated, and maintained in a
manner that minimizes environmental impacts through application of appropriate
preventive measures and complies with Environmental Requirements. Tenant shall
comply with the DIA Tenant Development Guidelines, as amended, for any alterations
to existing facilities or the construction of any new facilities. In addition, the Tenant
shall comply with Exhibit E of this agreement.
Exhibit Fto Ground Lease Agreement
C-44
FAA Solar Guide Appendix D. Power Purchase Aareement Exa
Appendix D
Power Purchase Agreement Example
(Denver)
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FAA Solar Guide Appendix D. Power Purchase Agreement Example
APPENDIX NO.3
I all i 1)i. @ 9 tuii � n 1 D7J IZ019 ) R d Do i � Ir8Y4"I A V111TJZO A iWIIfdl X59
The Party of the Second Part assures that it will comply with pertinent statutes, Executive Orders and such rules as
are promulgated to assure that no person shall, on the grounds of race, aced. color, nmion d origin, ses age, or
handicap be excluded from participating in any activity conducted with or benefiting from Federal assistance. This
Provision obligates the Party of the Second Part wits transferee for the period during which Federal assistance is
extended to the airport program, except where Federal assistance is to provide or is in the form of personal property
or real property or an interest therein or structures or improvements thereon. In these cases, this Provision obligates
the Party of the Second Part or any transferee for the longer of the following periods: (a) the period during which
the property is used by the sponsor or any transferee for a purpose for which Federal assistance is extended or for
another purpose involving the provision ol'srmilar services or benefits; or (b) the period during which the airport
sponsor or any transferee retains ownership or possession of the property. In the case of contractors, this Provision
binds the contractors from the bid solicitation period through the completion of the contract.
It is unlawful for airport operators and their lessees, tenors, concessionaires. and contractors to discrimittste
against any person because of race, color, national origin, sex, creed, or handicap in public services and employment
opportunities
Appmda No. a to Solar Power Pwdrue Aprecomt
I)mvm IntemNimal AOW
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FAA Solar Guide Appendix D. Power Purchase Agreement Example
SOLAR PONVER PURCHASE AGREEMENT
THIS SOLAR POWER PURCHASE AG12EENIEN'r (as it may be amended
from time -to- lime, this "Agreement "), is made and entered into theday of
2009 by and between the CITY AND COUNTY OF DENVER, a municipal corporation of the
Stale of Coloi ado ( "City" or "Purchaser "), and SY /.. Solar, a Colorado Partnership authorized to
do business in the State of Colorado ( "Power Provider ").
WITNESSETH:
W HEIZ EAS, Power Provider desires to install electricity ,rid- connected'photoeoltaic,
solar power plants with a total generating capacity rated atatpproxiniately 1,600. kWp (the
"Generating Facility ") located at the City's Denver Inicmational Airport ("Airport"), in Denver,
Colorado: and
WHEREAS, the City desires to purchase from Power. Provider and Power Provider
desires to sell to Purchaser the entire energy output of the Ge ieriting Facility:
NOW. THERIEFORE. in consideration of the promises and the mutual benefits from the
covenants hereinaRerset forth, Power Provider and the City agree as follows:
Line of Authority
The City's \9anager of,Avialion. his designee or successor in tugction (hereinafter referred to as
the " \9anager") authorizes and directs all work `perPorned under this Agreement. Until
otherwise notified'by the Q4aniger „,Ihe City's DeptiI D4anager of Aviation for \Qaintenance and
ly
Engineering .( "Dep(itynlenager',).is designated as the.atnhorized representative ofthe 11anager
through whom services_ perl'orntcd'under this Agreement shall be directed and coordinated-
Administrative reports, memoranda,: correspondence and othersubmittals required ofthe Power
Providershall be processed -ut accordance with the Deputy Manager's directions.
2. Definitions
(a) "Commercial UPcridion" nem'ts the condition existing when the Geterating Facility is
(i) mechahically complete and operiiing as specified in Exhibit. AL and (ii) energy is delivered
through'the Generating Facility's meter and to the Site `s electrical system under an approved and
executed Utility interconnection agreement.
(b) "Conunercial ;Operation Date' means the date on which Power Provider notifies
Purchaser in accordance with Section 3(c) that the Generating Facility has achieved Commercial
Operation.
(c) `Energy Delivery Point” means the energy delivery point within the Site's electrical
system on Purchaser's side of the Site's Utility meter, as designated in the Utility interconnection
agreement described in Section 2(a).
S.I. rows Nrdlas.Mgrc.n. l
Dana 611 a,Wionol AiTM
SFCA 472977.4
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FAA Solar Guide Appendix D. Power Purchase Agreement Example
(d) "Energy Output "nteatts the total quantity of all actual net energy generated by the
Generating Facility (measured in kWhac) and delivered in accordmtce with Section 19 to the
Energy Delivery Point in any given period of tine. Energy Output does 1101. include the
Environmental Incentives.
(e) "Environmental AllributeS" 'Means the characteristics of electric power generation at
the Generating Facility that have intrinsic Value, separate and apart from the Energy Output.
wising from the perceived environmental benefits of die Generating Facility of the Encrgy
Output, including bill not limited to all envirotunental and other attributes that differentiate the
Generating facility or the Energy Output front energy generated by.fossi Ffuel based generation
units, lads or resources, eharaclorislics of the Generating Facility that may result in the
avoidance of em'ironniental impacts on air, soil or water, such as the absence of emission of any
oxides of nitrogen, sulfur or carbon or of mercury, or other -is or chemical; soot particulate
matter or other substancas allribulablc to the Gencrating:Facilityor the compliance of the
Generating Facility or the Energy Output with the law, rules and standards of the. United Nations
Framework Convention on Climate Change (tile "UNFCCC ") or the Kyoto Prolocol to,the
UNFCCC or crediting "early action" with a view thereto; or laws or regulations involving or
administered by the Clean Air Markets Division of the Envirot`unetilttl Protection Agency or
successor administrator or any stale or federal entily given!juris Belton over a progani involving
transferability of rights arising from Environmental Attributes arid. Reporting Rights.
M "Environniontal Incentives" means all riglits, - credits (including lax credits), rebates,
benefits, reductions, offsets, and allowances 'a id entitlements of any kind, howsoever entitled or
naned (including carbon credits and allowances), xShclhcrarising under federal, state or local
law, international treaty, trade association mendlership or the,like, arising from the
Environmental Attributes' of the Generating Facility or the Energy Output or otherwise front the
development or installation of [lie Generating Facility-or the production, sale, purchase,
consumption or use of the.Energy Oi tpip. Without limiting the forgoing, "Environmental
Incentives" includes . green tags, rertewableanergycredits, tradable renewable certificates,
portfolio energy credits .(collectively, "Solar "Renewable Energy Credits" or °SRECs "), the right
to apply -for (and entitlement to receive) incentivz_s under the Self-Generation Incentive Program
the Emerging Renewables,Program or other incentive progDVns offered by the State of Colorado
and the'righi to claim federal income tax credits under Sections 45 and /or 48 of the Internal
Reveillle Code.
(g) `'Force Majeure" hi s,the meaning given to It in Section 29.
(h) "Generating Facility" means the electric power generation equipment, controls, meters,
switches, connections conduit, wires and other equipment connected to the Energy Delivery
Point installed as a fixture oil the Site by Power Provider for the purposes of providing electric
power to Purchaser under this Agreement and which shall be owned solely by Power Provider
throughout the tent of the Lease.
(i) "kW p" means kilowatt rated power.
(j) "Mac" means kilowatt alternating current
Solar P.tt M,16.m Agrc.i.fl
Dnrcv Immm�ianel Aigrotl
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FAA Solar Guide Appendix D. Power Purchase Agreement Example
(k) "kWhac" means kilowatt -hour altemating current.
(1) "Lease" means the Ground Lease Agreement between the Purchaser and ilia Power
Provider of even date herewith.
(m) " Party" nnc:ms Power Provider or Purchaser.
(n) "Parties" means Power Provider and Purchaser.
(o) "PUC" means the Public Utilities Commission of Colorado. -
(p) "Reporting Rights" means the right of Power Provider to report to any federal, stale, or
local agency, authority or other party, including without limitation under-Section I605(b) ol'the
Energy Policy Act of 1992 and provisions of the Energy Policy Act. ol'2005; or under any
Present or lidurc domestic, inlcmational or foreign emissions trading program, "that Power
Provider owns ilia Environmental Attributes and ilia Environmental Incentives associated with
the Energy Output. - -'
(q) "Site" mains Purchaser's facility at Denver hiternitional Airport in Denver, Colorado
or at such other location agreed to by Power Provider and Purchaser.
(r) "Utility" means Public Service CompaoyofColomdo, ilre electric distribution company
responsible for electric energy Iransmissioowid distribution service at ilia Site.
3. Installation and Operation of the Generating Facility
(a) Power Provider shall install the Generating, acilily in accordance with tine tenors and
conditions of the Lease; which, upon Commercial Operation, is targeted to have a combined
generating capacity raiing,as`shown in ExhibiLA. Power Provider shall provide Purchaser
reasonable notice of the progress- ,ofthe- installatinti of the Generating Facility and shall provide
reasonableaiolice to Purchaser ofthe Commercial Operation Date.
(b) Tower Provider shall be solely responsible for al I costs and the perfomtmtce of all tasks
iequired for installation oftheGeneiatingFacility. Promptly Following the execution of this
Agreement, Power Provider shall commence pre- installation activities relating to the Generating
Facility, wbich shall include, %i;itboin limitation, the following:
(i) obtain finmtciing for installation of ilia Generating Facility, and Solar Renewable
Energy Credits for operation of the Generating Facility;
(ii) obtain all pennits, contracts mud agreements required for installation of ilia
Generating Facility;
(iii) obtain all necessary authority from the PUC or other regulatory entities for the
operation of Generating Facility and sale and delivery ol'Energy Output to
Purchaser;
Solar P.tt M,16.. Agrc.i.fl
Nnry tmmWiand Aigron
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FAA Solar Guide Appendix D. Power Purchase Agreement Example
(iv) effect the execution of all agreements required for Utility interconnection of the
Generating Facility; and
(v) enter into contract(s) for installation of the Generating Facility, subject to the
terms of the Lease and any proposed financing.
(c) Power Provider shall (i) use commercially reasonable efforts to cause installation of the
Generating Facility to be completed and to cause the Generating Facility to begin Commercial
Operation on or before December 31, 2008; or (ii) on such dale, notify Purchaser of the actual or
estimated Commercial Operation Date. Successful completion of parts (i) - (vi) of Section 3(b)
shall be conditions precedent to Power Provider's obligations to install and operate Generating
Facility and otherwise perform its obligations under this Agreement. If the activities
contemplated in parts (i) - (v) of Section 3(b) are not completed by December 31, 2007. Power
Provider shall have the option to terminate the Agreement without triggering the default
provisions of this Agreement or any liability tinder this Agreement. Alternatively, in the event
that such conditions precedent are not satisfied by such date, the Parties may mutually agree to
amend this Agreement to revise the Commercial Operation Date and the term of this Agreement.
(d) Power Provider shall prevent activities associated with installation. operation and
maintenance of the Generating Facility from disrupting or interfering with Purchaser's operation
of the Airport.
(e) Power Provider shall he solely responsible for operation and maintenance of the
Generating Facility and shall. at all times during the term of this Agreement, maintain the
Generating Facility in good operating condition. Power Provider shall bear all risk of loss with
respect to the Generating Facility, and shall have full responsibility for its operation and
maintenance in compliance with all laws. regulations and governmental permits. In accordance
with the Lease, Purchaser shall provide adequate and secure storage space at the Site to store the
spare parts inventory for the Generating Facility for the terns of this Agreement.
(f) The Power Provider and the Purchaser hereby agree and acknowledge that
notwithstanding the Generating Facility's presence on the Site. Purchaser shall have no
ownership interest in the Generating Facility and no responsibility for is operation or
maintenance. Neither Purchaser nor any party related thereto shall have the right or be deemed
to operate the Generating Facility for purposes of Section 7701(ex4XA)(i) of the Internal
Revenue Code.
(g) All property taxes related to the Generating Facility shall be the responsibility of Power
Provider.
(h) Power Provider shall provide general and umbrella liability insurance coverage as set forth
in the Lease between the Parties.
(i) Notwithstanding any other provision of this Agreement, the effectiveness of this
Agreement, including the obligations and responsibilities of the Parties, is contingent upon the
arrangement and entering into of a Lease for the length of this Agreement between Purchaser and
Power Provider. Notwithstanding the Generating Facility's presence on the Site. except as
required by the Federal Aviation Administration or as required for air navigation purposes,
Mu Pm Ruche AW=imt
Drava Inlvnational Ai pM
D -6
FAA Solar Guide Appendix D. Power Purchase Agreement Example
Purchaser shall not cause or pemnit any interference . with the Generating Facility's insolation and
access to sunlight, as such access exists as oflhe elfeclive date of this Agreement.
Q) Purchaser represents to Power Provider that there are no circumstances known to
Purchaser mid no commitments to third parties that may damage, impair, or otherwise adversely
affect the Generating Facility or its function by blocking sunlight to the Generating Facility.
(k) llne Parties share a common desire to generate favorable publicity regarding the
Genel'alin.- Facllit'v and their association with It. 'Ilse Parties agree thatthey will, front Lime -to-
time, issue press releases regaling the Generating Facility and tbaihey'sliall cooperate %viiil .
each other in cmmection with the issuance of such releases. Each Party agrees that it shall not
issue any press release regarding the Generating Facility without,the.prior %vrinen consent of the
other Party; which consent shall not be wreasonably withheld or delayed. .
(1) Power Provider shall use commercially reasonable etiorts to cause Purchaser to maintain
the area in the immediate vicinity of the Generating' facility in .a reasonably neat and clean
condition.
J. Purchase and Sale of Power; Term
(a) Purchase and Sale. Beginning onthe'Connmercial Operation Date, and continuing for the
tens of this Agreement, Purchaser shall purchase and accept delivery front Power Provider at the
purchase price set rorth in Section 4(b) below, and Pi;wer.Provider, hall sell and deliver to
Purchaser the entire Energy Output (in such amountrot'otitput-as the Generating Facility
products front Tins to link). "Purchaser shall riolecscll any of tlic Energy Output except for any
net- nstering.
(b) Purchase Price, l?.urchaser'sliall pay Power'Providcr an attount equal to the Energy
Output multiplied by the Piuchasc:.Nri - per While (pursuant Exhibit 13). Such amount :shall be
paid in accordance wil.h -the temps of Section a l.:
(c) Taxes. In the event ihat any Imes are assessed against the generation, sale, delivery or
consumption of Energy Output, Purchaser shall pay I'or all such amounts due.
(d) Term. 'Ilia purchase and sale obligation under Section A(a) with respect to Energy
Output from the0encmting Facility shall commence oil [lie Commercial Operation Dale and
expire at die tittle and (late orexpiration of the.Lcasc ( "Expiration Date`). Notwithstanding the
foregoing sentence, sul*cito temtination contemplated in Section 3(c) or following a defiant by
a Patty as described in'Section 17, the tent of this Agreement shall continence oil the datefitst
written above and expire at the Expiration Date.
(c) Early Tennination by Powcr Provider. Power Provider shall have the tight, but not the
obligation, to tonninate this Agreement prior to expiration of its tens only upon the occurrence
of
(i) all unstayed order of a court or administrative agency having the el9ect of
subjecting the sales of Energy Output to federal or state regulation of prices.
Solar Pomtt 14116.. Agrcrniml.
Dnrcv Immmlianel Aigrotl
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FAA Solar Guide Appendix D. Power Purchase Agreement Example
(ii) elimination or alteration of one or more Environmental Incentives or other change
in law that results in a material adverse economic impact on Power Provider.
(iii) an annual level of direct beam solar resource availability that is less than or equal
to 90% of historical averages as measured by long -term weather data (minimum
of five (5) years) collected at the Site and/or other reliable calibrated and
appropriate weather station representative of the Site: or
(iv) the termination of the Lease prior to the Expiration Dale for any reason other than
Power Provider's breach of the Site Lease.
S Maximum Contract Payment Obligation
Any other provision of this Agreement notwithstanding, in no event shall the City's payment
obligation for the services provided hereunder be any amount in excess of the sum of (sunr of
estimated power payments) (Sx,xxx,xxx) over the tern of this Agreement, unless this Agreement
is amended to increase such amount.
6. Contmet Funding
All payments under this Agreement shall be paid from the City and County of Demur Airport
System Operations and Maintenance Fund and from no other find or source. The City is under
no obligation to make payments from any other source.
The City is under no obligation to make any flrture encumbrances or appropriations for this
Agreement nor is the city under any obligation to amend this Agreement to increase the
Maximum Contract liability stated above.
It is expressly understood and agreed that the obligation of the City to make payments to the
Power Provider shall only extend to monies appropriated by the Denver City Council, paid into
the Treasury of the City and encumbered for the purposes of this Agreement. The Power
Provider acknowledges that (i) the City does not by this Agreement irrevocably pledge present
cash reserves for payments in future fiscal years, and (ii) this Agreement is not intended to create
a multiple- fiscal year direct or indirect debt or financial obligation of the City.
7. The Power Provider's Project Manager
(a) The Power Provider shall provide a Project Manager who is trained. qualified and
acceptable to the Airport's Contract Administrator. The Project Manager shall have full
authority to ant for the Power Provider at all times to carry out the provisions of this Agreement
(b) The Project Manager shall make sufficient regular inspections, or otherwise as necessary,
either in person or by a designated representative, to ensure the work is performed as specified.
The Project Manager shall provide a copy of all inspection reports to the Airport's Contract
Administrator.
(c) The Power Provider agrees that it shall obtain the approval of the Airport's Contract
Administrator of the Power Provider's proposed Project Manager. The Power Provider shall
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FAA Solar Guide Appendix D. Power Purchase Agreement Example
submit a resume of the proposed Project Manager. along with other information reasonably
requested by the City, in order to obtain such approval.
Environmental Attributes
(a) Delegation of AtlrillUtCS. Notwilhsla nding the Generating Facility's presence on the Site,
Power Provider shall own, and may assign or sell in its sole discretion, all right, title and interest
associated with or resulting front the development and installation of the Generating Facility or
the production, sale, purchase or use ol'the Energy 0input including, without limitation:
(1) all Environmental incentives and all Environmental Attributes; and
(ii) the Reporting Rights and the exclusive . rights to claim thi : (A) the Energy Output
was generated by the Generating Facility; (13) Power Provider is ,responsible for the delivery of
the Energy Output to the Energy Delivery Point: (C) Power Provider is responsible for the
reductions in emissions of pollution and greenhouse gases resulting front tile generation ofthe
Energy Output and the delivery thereof to the Energy Delivery P.oinl; and (D) Power Pi ovider is
entitled to all credits, certificates, registrations, etc., evidcncing,or representing any of the
foregoing.
(b) Inroainttent of Solar Renewable Energy Credit,. Pollorvioy,notice by Power Provider of
actions or omissions which could impair orjeopardize either the sale of to the Utility or
the production ol'power hereunder, except as required. by [lie Federal Aviation Administration or
is required for air navigation purposes, Purchaser shall not take :any such action or suffer any
such omission at the Site. To the fullest extent Purchaser is able to comply, Purchaser shall take
such action or suffer suchbnussionL as neccssaryfo assist Power Provider in qual ifyingfor
receipt of SRECs payrtnein.
Alctermg
(a) Po >4cr Provide r shall install'and maintain a standard rcvcnuc quality meter with
electronic data acquisition. system C'DAS_,) capabilities at the Generating Facility. 'lie ureter
shall measure the alternating current output of the Generating Facility oil . a continuous basis.
Power Provider shall be responsible I'or maintaining the metering equipment in good working
order and, il' Purchaser so requests. for testing at Purchasers sole expense Ihe saute once per
calendar year and certifying the results of such testing to Purchaser. In the event of a failure of
the electronic meter reading system and until such fniluro has been corrected, Power Provider
shall be responsible for conducting monthly on-site readings of the standard electricity niter to
detemtine the output offhe Generating Facility delivered to Purchaser. Data retrieved from any
such meter shall serve as the basis for invoicing Purchaser ror all delivered energy.
(h) Power Provider shall maintain all DAS data and shall provide to Purchaser a report of the
Site's individual metered energy, as read and collected on a monthly basis, once each month
within fourteen (14) business days after the last day of the preceding month. Power Provider
shall verify and adjust all DAS data at least once per calendar year based on readings from the
foregoing standard meter. Subject to Section 9(a), such data, as verified and adjusted, shall serve
as the basis f'or invoicing Purchaser for all delivered energy. Power Provider shall preserve all
data compiled hereunder for a period not less than three years.
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(c) Not more than twice per calendar Year, Purchaser shall have the right to atidlt all such
DAS data upon reasonable notice, and any such audit shall be at Purchaser's sole cost (unless an
audit. reveals at least aten percent (10 %) overcharge to Purchaser, in which case Power Provider
shall bear the cost of tlmt audit). Purchaser steall have a right of access to all meters at reasonable
tinhcs and with reasonable prior notice for the purpose of verifying readings and calibrations. If
the metering equipment is found to be inaccurate, it shall be corrected and past readings shall be
promptly adjusted in an equitable mariner.
10. Delivery
(a) Title and risk of loss of the Energy Output shall pass front Power Provider to Purchaser
upon delivery of the Energy Output at the Energy Delivery Point. f\Il deliveries of Energy
m
Output hereunder shall be in the fon of three- phase, sixty -cycle alternating current or similar to
properly integrate with the Site's electrical system. Purchtisershall purcliasc and accept delivery
of metered Energy Output at the Energy Delivery Point.
(b) Power Provider shall . ensure that all energy generated by,, the Generating Facility
conforms to Utility specifications for energy being generated atiddel ivered to the Site's electric
distribution system, which shall include die installation of proper power conditioning and safety
equipment, submittal of necessary specifications, coordination oC Utility testing and verification,
and all related costs.
(c) Purchaser shall he responsible I'or ar r ingin.- delivery of Energy Output from the Energy
Delivery Point to Purchaser's facilities and any'• installation an2l operation of equipment. on
Purchasers side orthe Energy Delivery Point necessary for acceptance and use orthe Energy
Output 'llhe Parties acknowledge lfial adj ushnenis in the tenths and conditions of this* Agreement
nhay be appropriate to,account for role changes in'the respective Utility or Utility control areas,
by the respective independent system operators, or their successors, that could not be anticipated
at the date of execution orthis Agreement or that .are beyond the control of the Parties, and the
Parties agree to make such commercially reasonable amendments as arc reasonably required to
comply therewith, stihlecfto the approval of City Council with respect to Purchaser.
11. Invoices and Payment
Power Providershall deliver to Purchaser an annual invoice on December 31, of each calendar
year during the tenth of this Agreement, stating the Energy Outpw delivered to Purchaser during
the preceding calendar yearand calculating the purchase price therelihr. 'Ilse Power Purdtaser'x
annual invoice shall be in lonn satisfactory to the City. llhe Power Purchaser agrees that the
Airport's Contract Administrator may from lime to tine require changes to the I'onnal and
content of the annual invoice to be submitted by the Power Purchaser.
-Ilhc City shall process all invoices for payanent received fronh the Power Provider on a timely
basis in accordance with the City's Prompt Payinent Ordinance, Section 20 -107. et, seq. of the
Denver Revised Municipal Code ( "DR OC "). The Power Provideragrees that interest and late
fees shall be payable by the City hereunder only to the extent authorized and provided for in the
City's Prompt Payment Ordinance.
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12. Disputes
Either Party may, in good faith, dispule the correctness of any invoice or any adjushment to an
invoice rendered or adjust lily invoice for any arithmetic, computational or meter- related error
within twelve (12) months of the date the invoice or adjustment to an invoice was rendered. hi
the event a Part y disputes all or a port ion of an invoice, or any other claim or adjustment .vises,
that Party shall pay the disputed and undisputed portion when due and provide the other Party
notice of the dispute and the amount in dispute. In such event, the Parties shall first use good
faith, reasonable, diligent ellorts to resolve such dispute within a reasonable period of time not to
exceed thirty (30) days from the date of such notice. Irlhe Parties do;not resolve such a dispute
within such thirly (30) days, then such dispute, or arty other disputes arising under or related to
this Agreement, shall be resolved by administrative hearing which sliall be conducted in
accordwice with the procedures set forth in Section 5 -17, Rcviscd A9unicipal Code of the City
and County of Denver. The Parties hereto agree that the \I :unagcr of AviatioW's dctcrniinalion
resulting from said administrative hearing shall be tinal_,'subject only to the Po}yer Provider's
right to appeal the determination under Colorado Rule or Civil AProcedure, Idulc1I0'.
13, Title to Generating Facility and other Propcily`Rights '
(a) Notwithstanding the Generating Facility's presence oil [lie Site, Power Provider shal I at
all tires retain title to and be the legal and beneficial owner orthe'Genciating Facility, and the
Generating Facility shall remain the property of Powcr Provider or ]lower Provider's assigns.
Power Provider shall be entitled to, and is hereby authorized lo, file.one or more precautionary
financing statements or fiaturc filings in suchjurisdidioiis as it deems appropriate with respect to
the Generating Facility ill order to protect its rights in the Generating Facility.
(b) The Parties specifically acknowledge and agree that Power Provider shall be the owner of
the Generating. Facility For fedcral'incoime tax purposes, and in that connection, shall be entitled
to the depreciation deductions associated with.theGrenerating Facility as well as any tax credits
or other tax benefits provided under the Code to Which such Generating Facility may be entitled.
(c) nothing in this Agreement shall be constrled to convey to Purchaser a license or other
right to trademarks, copyrights. technology or other intellecuarl property of Power Provider.
14. Representations and Wartanties
Elach Party represents, and "warrants to the other Party that (a) such Party is duly organized,
validly existing arid ill good standing under the laws of the state of its formation and has all
requisite power and authority to enter into this Agreement, to perform its' obligations hereunder
and to consunintule the transactions contemplated hereby; (b) [lie execution and delivery of dais
Agreement and the perforniance of such Party's obligations hereunder have been duly authorized
by all necessary connparny action; (c) this Agreement is a. legal, valid and binding obligation of
such Party enforceable against such Party in accordance with its temis, subject to the
qualification, however. that the erifoicennent of the rights and remedies herein is subject to (i)
bankruptcy aund other similar laws of general application affecting rights and remedies of
creditors and (ii) the application of general principles of equity (regardless of whether considered
in a proceeding in equity or at law)_ and (d) neither the execution and delivery of this Agreement
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by such Party nor compliance by such Party with any of the terms and provisions of this
Agreement conflicts with, breaches or contravenes the provisions of such Party's organizational
documents or anv slate slalutes as applies to such Party. Power Provider further represents and
warrants to the Purchaser that to Power Provider's knowledge, no governmental approval (other
than any governmental approvals which have been previously obtained or disclosed in writing to
Purchaser) is required in connection with the due authorization, execution and delivery of this
Agreement. by Power .Provider or the performance by Power Provider of its obligations
hereunder which Power Provider has reason to believe that it will be unable to obtain in duc
course. Purchaser further represents and warrants to the Power Provider.lhat to the Purchaser's
Department of .aviation's knowledge, except for building pernits� and- approval by the City
Council, no governmental approval (other lhtut any governmental approvals which have been
previously obtained or disclosed in writing to Power Provider) is required in connection with the
due authorization. execution and delivery of Lhis Agreement by.. Purchaser' or the perfommmce by
Purchaser of its obligations hereunder which Purchaser -has reason to believe that it will be
unable to obtain in due course.
15. Covenants and Liens
Notwithstanding the Generating Facility's presence on the Site, Purchaser shall not directly or
indirectly cause, create, incur, assunte 'or "culler to exist any mortgage, pledge: lien (including
mechanics'. labor or matcrialman's lien), charge, security interest; encumbrance or claim on or
with respect to the Generating Facility or any interest therein. Purchaser also shall pay promptly
before a line or penalty may attach to the Generating Facility any taxes, charges or fees of
whatever type of any relevant _govcmmenlal, "authority for which Purchaser is responsible. If
Purchaser breaches its obligations Under this Section, it shall immediately notify Power Provider
in writing, shall promptly cause such liens to be' "discharged and released of record without cost
to Power Provider. -
16. Loss - --
If the Generating Facility is,(i) materially damaged or destroyed, or suffers any other material
loss or(ii) condenmed, confiscated or otherwise taken, in whole or in nalerial part MAW use
thercofis. otherwise diminished so as to render impracticable or unreasonable the continued
production W6nergy, to the extent there are sufficient insurance or condemnation proceeds
available to power" Provider. Power Provider shall either cause (A) the Generating Facility to be
rebuill and placed: in`Commnercicd Operation at the earliest practical (lame or (13) another
materially identical' Generating Facility to be buill in the proximate area of the Site and placed in
Commercial Operation as soon as commercially practicable.
17. Default and Remedies
(a) la'elll of Default. Willi respect to a Part', there Shall be all event of defaull if.
(i) such Party fails to pay any amount within thirty (30) days after such amount is
due, or as otherwise provided by the City's Prompt Payment Ordinance;
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(ii) except as otherwise set forth in this Section 1.7(a), such Party is in breach of any
representation or warranty set forth herein or fails to perform any material
obligation set forth in this Agreement and such breach or failure is not cured
within sixty (60) days after notice from the non- defaulting Party; provided,
however, that the cure period shall be extended by the number of days during
which the defaulting Party is prevented front taking curative action solely by
Force Mijeure if the. defaulting Party had begun curative action and was
proceeding diligently, using commercially reasonable efforts, to complete suet
curative action:
(iii) such Party admits in writing its inability to pay its debts generally as they become
due:
(iv) such Party files a petition or answer seeking reorganization �or arrmgentenl Under
the federal bankruptcy laws or any other applicable law or statute of the United
Slates ol'Amterica or any Stale, district or territory thereol;
(v) such Party makes an assignment for the benelitof creditors;
(vi) such Party consents to the appointment of a'receiver of the whole or any
substantial part ol'its assets;
(vii) such Party has a petition in bankniptcy: riled against it turd such petition is not
dismissed withir90 days after the.liling lhereol r
(viii) a tout of competenti'm indiction enters art order, judgment, or decree appointing a
receiver of the whole or any substantial pan of such Party's assets, autd such
order, jude„rnenl or decree is not vacated or set aside or stayed within 90 days
- from -the date of entry thereof
(ix) under tile provisions of ally other law for the relief or aid of debtors, any court of
competent jurisdiction shill assume custody or control of the whole . or any
subslalrtial part', of such Party's assets and such custody or control is not
tinninated or stayed within 90 days from the dale of assumption of such custody
or control: or
(x) Purchaser orPower Provider materially breaches the Lease.
(b) Remedies. Upon default by one Party, the other Party shall have the right, bill not the
obligation, to tmntinate or suspend this Agreement with respect to all obligations arising after the
eli'ective date of such termination or suspension (other than payment obligations relating to
obligations arising prior to such terminalion or suspension). llie Parties agree that in the event
of a default under [his contract that leads to termination, the non - defaulting Party may pursue all
remedies available to it in law and in equity.
(c) No Waiver. Any waiver at any line by either Party of its rights with respect to am event
of defiult under this Agreement, or with respect to any other matters arising in connection with
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this Agreement, shall not be deemed to be a waiver with respect to any subsequent default or
other matter. Anywaiver under this Agreement must be in writing sighted by the waiving Party.
(d) Notwithstanding any provision to the contrary under this Agreement, neither Purchaser
nor any party related to Purchaser shall bear or be deemed to bear any significant financial
burden if there is nonperlonmance by Power Provider under this agreement, as the phrase `any
significant financial burden if there is nonperformance" is used in Section 7701(e)(4)(A)(ii) of
the Interval Revenuc Code.
(c) Notwithstanding any provision to the contrary under this Agreement, neither Purchaser
nor any party related to Purchaser shall be deemed to receive any significant financial benefit if
the operating costs of the Generating Facility are less than the standard of performance and /or
operation set forth in this Agreement, as the phrase "signifidaht financial benefit if the operating
costs of [the Generating Facility] arc less than the standards uroerl'ommncc or operation" is used
in Section 7701(e)(4)(A)(iii) of thehttemal Revenue Code.
18. Limitation of Liability l
IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHEIR PARTY FOR
CONS I'iQUG \I'I'I: \L, INCIDENTAL., PUNITIVE', Ii:XEhIPI >,�U21' OR INDIRECT I)MMAGI:S,.
LOST PROFITS OR BUSINESS INTERRUPTION DAMAGES. '.BY STATUTE_. IN TORT_,
CONTRACT OR OTHERWISE,
19. Agrecntentt Subordinate to Agrcemutts with United States
This Agreement is subject and subordinate to die ipnns, reservations, restrictions and conditions
of any existing or future mgreenhents between the City and the United States, the execution of
which has been or maybe required as a condition precedent to the trmhsfer of federal rights or
property to the City for Airpti t. purp.9%,6s, and the ezpcndittrre of I'edcrul funds for the
development of the- Alihport or airport system. T_ he provisions of the attached Appendices 1 and 3
are incorporated heroin by this rcrerence.
20. - - Airpml. Security
(a) It is a.malerial requirement of this Agreement that the Power Provider at its sole expense
and without reimbursement by the City shall comply with all rules, regulations, written policies
and authorized directives rrgm the City and /or the Transportation Security Administration with
respect to Airport security. The Power Provider shall conduct all ofits activities at the Airport in
compliance with the Airport security program, which is administered by the Security Division of
the City's Department of Aviation. Violation by the Power Provider or any of its employees,
subcontractors or vendors of anynte, regulation or authorized directive front the City or the
'transportation Security Administration with respect to Airport Security shall be grounds ror
immediate tenminalion by the City of this Agreement for cause.
(b) the Power Provider, promptly upon notice of award of this Agreement, shall meet with
the Airport's Assistant Security Nfanager to establish badging and vehicle pemhit requirements
for Power Provider's operations under this Agreement. The Power Provider shall obtain the
proper access authorizations far all of its enhployecs, subcontractors mid vendors who will enter.
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the Airport to perf'omn work or make deliveries, and shall be responsible for each such person's
compliance with all Airport rules and regulations, including without limitation those pertaining
to security. Any person who violates such rules may be subject to revocation ol'hislher access
authorization. The failure of the Power Provider or any subcontractor to complete any required
services hereunder shall not be excused on account of the revocation for good cause of access
authorization of any person.
(c) glee security status of the Airport is subject to change without notice. If the security
status of the Airport changes at any time during the lenn of this Agreement, the Power Provider
shall take inunediate steps to comply with security modifications which occur as a result of the
changed status. 'Ihc Power Provider may at any bate obtain current information front the Airport
Security Office regarding. the Airport's security status in relation to the Power Provider's
operations at the Airport.
(d) The Power Provider shall . return to the City at die expiration or tenninalign of this
Agreement, or upon demand by the City, all access keys or access badges issucd�o it or any
suhcontractor for any area of Ilic Airport. whclhci ornot restricted. If the Power Provider fails to
do so, the Contractor shall be liable to reimburse the City for all the City's costs for Work
required to prevent compromise ofthe Airportsecuritysyeteni. 'Ihe City may withhold funds in
the amount of such costs front any anhounis clue and payable to. the Power Provider under this
Agrcen ent.
21. Nondiscrimination
In connection with the perfonnahce of work under this Agreement, Power Provider agrees not to
refnse to hire, discharge,; promote or denote, or to discriminate in matters of compensation
against any person other vise qualified, solely because of race, color, religion, national origin,
gender, age, mile ny status,sexua] orientation, inarilaI status, or physical or ntcranI disability;
and Power Provider fiutheragrees to, inserrilte.foi ego ing provision in all subcontracts hereunder.
22. Bond Onlutagces ;,Governing Law; Venue
ThistAgrccnncnl shall be deenned to have peen made in, and shall be construed in accordance
with the laws of llic Slate of Colorado and the Charter and Ordin:mces of the City and County of
Denver. 'rhis Agreennent is ih all respects subject and subordinate to any and all City bond
ordinances applicable to the Deaver Nlunicipal Airport System and to any other bond ordinances
which intend, supplement, or replace such bond ordinances. Venue for any action hereunder
shall be in the City and County of Denver, State of Colorado.
23. Inspection of Records
(a) In connection Willi any services perlimned hereunder on items of Work toward which
lederal funds may he received under the Airport and Airway Improvement Act of 1982, as
amended. the City andCounty of Denver, the federal Aviation Administration, the Comptroller
General of the United Slates and any other duly authorized representatives shall have access to
any books, documents, papers and records of the Power Provider which are directly . pertinent to a
specific grant prograttl for the propose of- nmking audit, examination. excerpts and transcriptions.
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The Power Provider further agrees that such records will contain information concerning the
specific (asks performed along with the applicable federal . project number.
(b) The City and the Auditor of (lie City orally of his duly authorized representatives, until
the expiration of three years af9er the final payment under this Agreement, shall have access to
and the right to ex.miine any directly pertinent books, documents, papers and records of the
Power Provider which are related to Work pertbmted under this Agreement without regard to
whether the Work was paid for in whole or in part with federal funds or was otherwise related to
a federal gran program.
(c) In addition to the foregoing. Each Party hereto shall keep complete and accurate records
of its operations hereunder and shall maintain such data as may be necessary to deterinine with
reasonable accuracy any item relevant to this Agreement. Each' Party shall have the right to
exaninc all such records insofar as may be necessary for the purpow of ascertitining the
reasonableness and accuracy of any statements of costs, relating to transactions hereunder.
24. .Assignment
(a) Neither Party shall assign this Agreement or any of its, rights hereunder without the prior
wrillen consent of the other Party, which consent shall not be unreasonably withheld or delayed.
Notwithstanding the foregoing, either Pad) iliav upon ii•i-ition` notice, without lie need for
consent front the other Party (and wilhout.relicving itself from liability hereunder), (i) transfer,
pledge or assign [his Agreement as security for any, finymcing or tp an affiliated special purpose
entity created for the financing or tax credit purposes related to-Generating Facility; (ii) transfer
or assign (his Agreement . lgany person or enli(ysucceeding to all or substantially all of the assets
of such Part) <, provided, however, that any such assignee shall agree to be bound by the tents
and conditions hereoP,, (iii) assign its rights under this Agreement to a successor entity in it
merger or acquisition transaction, provided, however that any such assignee shall agree to be
bound by the feints and conditions hereof or (i%,) transter or assign this Agreement to one or
more affiliates. . provided, hov ewer, that any such assignee shall agree to be bound by (lie lemis
and conditions hereof. Notwithstanding, and in addition to, the foregoing, Purchaser stay 1101
assign this. Agreement lo•ai''entity wit) ?a Credit Rating lower than that of Purchaser at the time
without the following matching credit supporl provisions, as implemented by Purchaser:
If at any time Power Provider has a concern about Purchaser's obligations hereunder, including
its ability to pay, Power Provider shall require Purchaser to provide Performance Assurance (as
defined below) willih tell (1O) days of receipt of notice from Power Provider that such
Perfortance Assurance will be required. "Performance Assurance" shall treat collateral in the
Ibnn of either cash 'or letter(s) of credit for six (6) months of payment, or other security
reasonably acceptable to Power Provider. "Credit Rating" shall mean, with respect to all entity
of any date or de(emtinaliot, the respective rating (hen assigned to its unsecured and senior
long -lens debt or deposit obligations (not supported by third -party credit enhancement) by
Standard & Pools Ratings Services (a division of McGraw - Hill): ilfoody's Investors Service.
Inc., or their respective successors.
(b) With respect to a transfer, pledge or assignment by Power Provider pursuant to clause (i)
in the second sentence of Section 24(a), .Purchaser and Power Provider acknowledge and agree
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that. upon receipt of wrinen notice and direction by any financing- trmisaction assignee
( "Lender ") or Power Provider that Power Provider is in default under its financing agreements
with Lender, and notwithstanding any instnictions to the contrary by Power Provider. Iurchaser,
as directed in writing by Lender; will recognize such Lender; or any third party to whom such
Lender has reassigned the rights of Power Provider under this Agreement, as the proper and
lawful provider of power under this Agreement and fully entitled to receive paynnents with
respect thereto so long as such Lender (or its assignee) performs the obligations of Power
Provider hereunder. Purchaser shall be protected and shall incur no liability in acting or
proceeding in good faith upon any such loregoing Written notice and .direction by Lender which
Purchaser shall in good faith believe (a) to be genuine mid (b) a copy of-which shall have been
delivered W Power Provider. Purchaser shall be under no duty Flo . -make any investigation or
inquiry as to any statements contained or matters referred loin any :such roregoing notice and
direction. but may accept. and rely upon them as conclusive evidence orihe truth and accuracy or
such statements. °
(c) Purchaser agrees to notify Lender in writiue.-at the address to he designated by Lender
upon not less than Five (5) business days' written notice to Purchaser prior to, any notice by
Purchaser hereunder, or any act or event of default ol"Power. Provider under the Agreement or
which Purchaser has knowledge that would entitle Purchaser to cancel. temtinate, annul, or
modify the Agreement or otherwise proceed with enforcement remedies against Power Provider,
:utd (..ender shall have Oae smite annum of linne as Power Provider. but at least ten (10) days with
respect to any monetary derault and at least, thirty (30) days with respect to any non - monetary
derault. to cure may default. by Power Provider undecthe.Agreement provided that in no event
shall Lender be obligated to cure any such deraidt: ,
25. No "Third Px rfy Benetidaries
It is expressly understood and agreed that enl'oreenient ofthe tents and conditions of this
Agreententr mid all rights of aclioii relating to such er forcement. shall be strictly reserved to the
City mid the Power. Provider, and nothing contained in this Agreement shall give or allow any
such clairn or right ofactionby miyother or third person on such Agreement. It is the express
intention of the City <mtd the Power Provider that any person other than the City or the Power
Provider receiving services er benetitsvnder this Agreement shall be deemed to be an incidental
beneficiary only:,
26. Independent. Contr>,ctor
Power Provider shall at all tines have the status of mi independent contractor without the right or
authority to impose tort, or contractual liability upon the City. Nothing in this Agreement shall
be construed to nwmt or imply that Power Provider is a partner. joint venturer. agent or
representative or the City. Neither the City nor Power Provider shall represent to others that one
Petty is a patner. joint venturer- agent or representative or. or otherwise associated with, the
other Party.
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27. Notices
All notices required to be given to the City or Power Provider hereunder shall be in
writing and sent by certified anal 1, return receipt requested, to:
City: Manager of Aviation
Denver hnenmtional Airport
8500 PCIM Boulevard. 9 °i Floor
Denver, Colorado 80249 -2065
With a copy lo:
Airport Property Office
Denver Inlemational.Airport
8500 Pena Boulevard, 9'a Floor
Denver. Colorado 80249.2065
Power Provider: XYZ Solar
Address
Contact Phone Numbers,
Either Party hereto may designate in writing from dine to little the,address of substitute of
alpplemenhuy persons wilbin.lhe Slate of Coluradodo racci��o such notices. 'llre ciTecliyc elate
of service of any such notice shall be three days ;Mier the date such notice is mailed to Power
Provider or Mmager..
28. Phial Approval
"Ibis Agreement is expressly subject to and shall not be or become elTective or binding on either
Party until it is approved by Deriver's•City Council and Bally executed by all signatories hereto,
including all signatories orthe City. and'Coimly of Denver.
29. Force Majeure
Powor Provider shall not be•liable to Purchaser for any frrilure, delay or interruption in the
pertomnatee of any,ofthe lerins. covenants or conditions of this Agreement to the extent such
failure; delay or interruption is due to causes which were not reasonably foreseeable and are
beyond the control of Power Provider, including without limitation strikes, boycotts, labor
disputes, embargoes, shortages of materials, acts of God, acts of the public enemy, acts of
superior govennnental authority, weather conditions, floods, riots, rebellion, sabotage or any
other circumstance for which Power Provider is not responsible or which is not in its power to
control.
30. Set -Off
Solar P.tt M,16.. Agrc.i.fl
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16
D -18
FAA Solar Guide Appendix D. Power Purchase Agreement Example
Except as otherwise set forth herein, each Patty resen'es to itself all rights, set - offs,
counterclaims and other remedies and /ordetenses to which it is or may be entitled, arising from
or out of lh is Agreement or arising out of anv other contractual arranngenienIS between the
Patties. All outstanding obligations to make, and rights to receive, payment under this
Agreement may be offset against each other.
31. Binding Ef ect.
the terms and provisions of this Agreement, and the respective rights and obligations hereunder
of each Party, shall be binding upon, and inure to the benefit of. the Padies`and their respective
successors and pertained assigns.
32. Amendments
No modification orlhis AgreennenL shall be effective except by written annentdillent executed by
the Panties; provided, however, if Purchaser has been notified that Power Provider -has assigned
any of its rights, duties or obligations under this A.- reclnent to a.Lcnder, then the prior written
consent of Lender is required as well. -
33. Counterparts
Any number of counterparts of this Agreentzntpiay he executed aid each shall have the same
force and effect as the original.
34. Other Agreements
'lltis Agreement constitutes the entire agreement between the Parties relating to the subject
matter hereof and supersedes any other prior agreements, written or oral, between the Patties
concerning such subject inatier (other than the Lease <and the Utility interconnection agrecnnent
referred to inSection.2(a) abov ).'In "the eAenl orin irreconcilable conflict between a provision
of this Agreement and aprovision of the Lease, such that it is impossible to give effect to both,
the I:xase shall control to resolve such convict.
35. Severability
Should any provision of thic,Agreement for any reason be declared invalid or unenrorceable by
final and non - appealable order of any court or regulatory body havingjurisdiction, such decision
shall not affect the validity orthe remaining portions, and the . remaining portions shall remain in
full force and effect as�liflhis Agreement had been executed without the invalid potion.
36. Sundcal
Any provision(s) of this Agreement that expressly or by implication comes into or remains in full
force following the termination or expiration of this Agreement shall survive the ten nination or
expiration orlhis Agreement.
Solar P.tt M,16.. Agrc.i.fl
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FAA Solar Guide Appendix D. Power Purchase Agreement Example
37. Legal Effect. of Contract
(a) 'llie Patties acknowledge and agree that the transaction contemplated under this
Agreement constitutes a "lonvard contract" within the meaning of the United States Bankruptcy
Code, and the Parties further acknowledge mid agree that each Party is a "forward contract
merchant" within the meaning of the United States Banknuptcy Code.
(b) llie Patties acknowledge and agree that for accounting or tax purposes, this Agreement
is riot and shall not be construed as it capital lease and, pursuant to Section 7701(e)(3) ol'the
Internal Revenue Code, this Agreement is and shall be deemed to bea service contract with
respect to the sale to the Purchaser of electric energy produced at <ativaltctnative energy facility.
38. Cooperation
Upon the receipt of it written rziµizst front [lie other Party and ` without flutter consideration,
each Party shall provide materials, itdormation, assurances and take such additional actions as
are reasonably necessary mid desirable to carry out die terms and intcnt hereof. Ne ther Party
shall unreasonably withhold, condition or delay its ediiiplimtce wiih arty reasonable request
made pursuant to this section. llrithont limiting the foregoing, the Parties acknowledge that
they are entering into a long -terni arrangement in which the cdoperation of both of Ihcnt will he
required.
39. Waiver
llne waiver by either Party of any breach of aoy term, condition, or provision herein contained
shall not be dcaned to be a waiver of such term, condition, or provision, or any subscqucnI
breach of the same, or any other temp, condition, or provision contained herein.
(Signature l'rrge to Fallon]
Solar P.tt M,16.m Agrc.iafl .
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D -20
FAA Solar Guide
Appendix D. Power Purchase Agreement Example
IN WITNESS WHEREOF, the parties hereto have executed this Solar Power Purchase
Agreement as of the day and year first above written.
ATTEST:
STEPHANE Y. O'MALLEY, Clerk and
Recorder, Ex-officio Clerk of the
City and County of Denver
APPROVED AS TO FORM:
CITY AND COUNTY OF DENVER
Mayor
RECOMMENDED AND APPROVED:
LIS
DAVID R. FINE, Attorney for the Manager of Aviation
City and County of Maiver
REGISTERED AND COUNTERSIGNED:
By
Manager of Finance
By
Assistant City Attorney Contract Control Number:
S.I.r P"vn N,6. A,.,..t
Dmva Inlc alimai tiry"1
Auditor - Contract Control No.
"CITY" or "PURCHASER"
POWER PROVIDER
Oak Leaf Energy Partners
By:
By:
Name:
Title: Chief Executive Officer
"POWER PROVIDER"
19
D -21
FAA Solar Guide Appendix D. Power Purchase Agreement Example
Exhibit A
Estimated Annual Production for First Year
Purchaser PV Projects
Locadon
Size
Est. Annual I'
Type
Number and
Year
Type of Module
Production
Denver. Colorado
Fixed Tilt
Ground
Mount
ErMft A t. W. Pawn P.ch. Ap 1.11
D.,. InlmW...I ArpW
D -22
FAA Solar Guide
Appendix D. Power Purchase Agreement Example
Exhibit B
Purchase Price
Year of
Rate Price Escalator
Contracts
I
ax
2
0%
3
a9a
4
ax
5
s.
6
me
7
ax
9
asc
9
0%
10
nu
I 1
ass
12
as:
13
uq
14
0%
15
aw
16
0%
17
Im
1g
0%
19
ox
20
ow
21
oss
22
vw
23
on
24
ox
25
am
Thereafter
Annual Price Escalator: Each year during the term of the Agreement, the purchase price shall
be adjusted upward by the price escalator listed in this Exhibit B.
s Each year starts at 0000 hours on the Date of Commercial Operation (or anniversary) and runs
through 2400 horns on the date before the following anniversary (e.g., 0000 hours on January 1
through 2400 hours on December 31).
Eebadl n to S.I. Power P..h. Agm..rtW
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D -23
FAA Solar Guide Appendix D. Power Purchase Agreement Example
APPENDIN NO. l
STAdVD,UZD FEDERAL ASSUILNCES
NOTE: As used below the term "contractor" shall mean and include the "Party of the Second Ant," and the term
"sponsor" shall mean the "City. -
During the term of this contract, the convamor, for itself, its assignees mid successors in interest (hereinafter refered
to as the - contractor ") agrees as follows:
1. Compliance with Regulations. The contractor shall comply with the Regulations relative to
nondiscrimination in federally assisted Is ogrmns of the Department ol`I'rmtsportation (hereinafter -Dar, JTitic 49.
Code of Federal Regulations, Part 21, as they maybe amended from time to time, (Hereinafter reRnred to as the
'Regulations'), which are herein incorporated by reference and made a pan ofthis contract.
? Nondiscrimination. The contractor, with regard to the work performed,by it during the contract,
shall not discriminate on the grounds of race, color, se` creed or national origin in the selection and retention of
subcontractors, including procurements of materials and leases.gf equipment. The eonimclor shalhntn participate
either directly or indirectly in the discrimination prohibited by section 21.5 oche Regulations, including
employment practices when the contract covers a progmm'set forth in Appendix R of the Regulations.
7. Solicitations for Subcontractors, Including Procurements or Materials and Equipment. In all
solicitations either by competitive bidding or negotiation made by the contractor for work to be performed under a
subcontract, including procurements of materials or [cases of equipment, each potential subcontractor or supplier
shall be notified by the contractor of the conlmclor.s obligations under this conlmctand the Regulations relative to
nondiscrim imaion an the grounds or race, color, or national origin.. 1 '
4. Information and Repots. The contractor shall provide all information and reports required by the
Regulations or directives issued pursuant. thereto and shall print it access to�its books, records, accounts other
sources of information, and ith,facilities..ad'msy be determined by the sponsor or the Federal Aviation
Administration (FAA) to be pertinent to ascertain compliance with such Regulation& orders, mid instructions.
Where any infomtation rcquired,of a contractor is in the exclusive possession of another who fails or refuses to
furnish this information, the convector shall, so cenifv to the sponanr of the FAA, as appropriate, and shall act Ibrth
what efforts it has. made to obtain the irifornmtion.
j: Sanctions for Noncompliance. In the event of the contractor's noncompliance with the
nondiscrimimaion provisionsof this contract. the sponsor shall impose such contract sanctions as it or the FAA may
determine to be appropriate, includin_ but not limited to:
a. Withholding of payments to the contractor under the contract until the contractor complies, and/or
b. Cancellation, termination, or suspension of the conract, in whole or in pan.
b. Incorporation of Provisions. The contractor shall include the provisions of paragraphs I through i
in every subcontract, including procurements of materials and leases of equipment, unless "cinpl by the
Regulations or directives issued pursuant therein. The contmetor shall take such action with respect to any
subcontract or procurement as the sponsor or the FAA may direct as a means of enforcing such provisions including
sanctions for noncompliance. Provided, however, that in the event a contractor becomes involved in, or is
threatened with, litigntion with a subcontractor or supplier its a result tof such direction, the contractor may request
the sponsor to enter into such litigation to protect the interests of the sponsor and, in addition, the contractor may
request the United. Stales to enter into such litigation to protect the interests of the United States.
Appaatis Nu. l W S.I. P.ar Pmchvsc Agrmnat
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Materials Received
Item No. 2d
Solar Energy System Installations
PA2010 -113
May 21, 2010
SOLARGEN
SOLARGEN Energy
Panoche Valley Solar Farm Project
Glint and Glare Study
PROJECT NUMBER,
11]261
PROJECT CONTACT.
Jason Pfaff
EM IL;
ja$.n pMff@p...g...
PHONE. -
509-]58 -6029
'�
:� POWER
l ENGINEERS
POWER ENGINEERS, INC.
Panoche Valley Solar Farm Project
Glint and Glare Study
PREPARED BY,'POWER ENGINEERS
POWER ENGINEERS, INC.
TABLE OF CONTENTS
GLINT & GLARE STUDY FOR THE PANOCHE VALLEY SOLAR FARM PROJECT ........2
1.0 INTRODUCTION .............................................................. ...............................
1.1 DEFINITIONS AND DESCRIPTIONS OF THE PHOTOVOLTAIC PANEL
1.2 METHODOLOGY ............................................................. ...............................
1.2.1 KVP IDENTIFICATION ..................................................... ...............................
1.2.2 3D SIMULATIONS ............................................................ ...............................
1.3 RESULTS ........................................................................... ...............................
1.4 CONCLUSIONS ................................................................ ...............................
1.5 SOURCES .......................................................................... ...............................
APPENDIX A — GLINT /GLARE RESULTS
APPENDIX B — SUNPOWER SOLAR MODULE GLARE AND REFLECTANCE
FIGURES:
................... 2
................... 2
................... 2
................... 4
................... 6
................... 7
................... 8
................. 11
......12
......13
FIGURE I - EXAMPLES OF GLINT AND GLARE ........................................................... ............................... 3
FIGURE2 - KVP LOCATION MAP ............................................................................ ............................... 5
FIGURE 3 - PV PANEL ANGLE STUDY ..................................................................... ............................... I
INSETS:
INSET 1 - PV PANEL POSITIONS ................................................................................ ..............................6
INSET 2 - OAKLAND FEDEX INTERNATIONAL AIRPORT HUB ................................ ............................... 10
ANIMATIONS (included on DVD):
KVP2_36_Summer.wmv
KVP2_24_Summer.wmv
KVP2_12_Summer.wmv
KVP2_36_Winter.wmv
KVP2
24
Winter.wmv
KVP2
12
Winter.wmv
PHX (032 -002) (PER 02) SOLARGEN (05/14/10) HH 117261 PAGE i
POWER ENGINEERS, INC.
GLINT & GLARE STUDY FOR THE PANOCHE VALLEY SOLAR
FARM PROJECT
1.0 INTRODUCTION
POWER Engineers, Inc. (POWER) has prepared a Glint and Glare Study for the Panoche Valley
Solar Farm Project (Project). The purpose of the study is to determine the following:
• Will glint and glare be visible to offsite viewers?
• If glint and glare is visible, how long will it occur?
• What is the intensity of the glint and glare?
1.1 DEFINITIONS AND DESCRIPTIONS OF THE PHOTOVOLTAIC PANEL
The following definitions and descriptions are key to understanding the methodology and results of
the study:
• Photovoltaic Panel — Photovoltaic panels, also known as PV panels, are designed to absorb
solar energy and retain as much of the solar spectrum as possible in order to produce
electricity.
• Glint — Also known as a specular reflection, produced as a direct reflection of the sun in the
surface of the PV solar panel. This is the potential source of the visual issues regarding
viewer distraction (see Figure 1).
• Glare — A continuous source of brightness, relative to diffused lighting. This is not a direct
reflection of the sun, but rather a reflection of the bright sky around the sun. Glare is
significantly less intense than glint (see Figure 1).
• Key View Point (KVP) — KVPs are viewpoints used in the glint and glare study, and serve as
the offsite viewpoint locations for photo simulations and animations (see Figure 2).
1.2 METHODOLOGY
POWER used the following methodology to determine if glint and glare will be visible:
1. Identify Potential Glint and Glare Issues — POWER studied KVPs identified in the Panoche
Valley Solar Farm Project EIR and developed the study based on these locations.
2. Characterize —POWER developed accurate computer simulations of the solar project in three
PV array configurations (36, 24, and 12 degree angles). These configurations were used to
evaluate the location and duration of glint and glare.
PHX (032 -002) (PER 02) SOLARGEN (05114110) HH 117261 PAGE 2
Photovoltaic Solar Panels I Glint & Glare
POWER
Figure 1 ENGINEERS
POWER ENGINEERS, INC.
3. Evaluate —Visual analysts studied the simulated project under different PV angle options and
lighting conditions, and at different times of the year. These simulations were used to
evaluate and document when glint and glare may be visible to KVPs. Results of this
evaluation can be found in Section 1.3.
1.2.1 KVP Identification
Solar farm operations were studied from six KVPs (see Figure 2). Photography was taken from each
KVP and used as the foundation for the computer simulations developed. The KVPs provided
analysts with a sampling of different distances and view angles of the Panoche Valley Solar Farm
Project. 3D simulations were developed at each KVP under different lighting and operation
conditions. Each KVP is described below:
• KVP 1 — Southbound Little Panoche Road, just north of the northern project boundary in the
vicinity of coordinates — Latitude: 36° 39' 41.5" N, Longitude: 120° 52' 33.9" W, viewing to
the south.
• KVP 2 — Northbound Little Panoche Road, immediately north of the south proposed project
boundary (within the development area) in the vicinity of coordinates — Latitude: 36° 37'
00.8" N, Longitude: 120° 52' 35.7" W, viewing to the north - northeast.
• KVP 3 — Eastbound Panoche Road, approximately 0.65 mile south of the southwest comer of
the proposed project site and 1.1 miles west of the intersection with Little Panoche Road, in
the vicinity of coordinates — Latitude: 36° 36' 27.1" N, Longitude: 120° 53' 46.8" W, viewing
to the northeast.
• KVP 4 — Northbound New Idria Road, approximately 0.5 mile southeast of the intersection
with Panoche Road, in the vicinity of coordinates — Latitude: 36° 35' 30.2" N, Longitude:
120° 49' 14.8" W, viewing to the north - northwest.
• KVP 5 —Adjacent to Panoche Access Road and the southwest boundary of the Panoche Hills
(Wildlife Study Area), approximately 3.5 miles northeast of the eastern proposed project area,
in the vicinity of coordinates — Latitude: 36° 39' 24.26" N, Longitude: 120° 46' 44.01" W,
viewing to the southwest.
• KVP 6 — The nearest airport (Pinnacles Ranch Airport) is 15 miles away from the project site
(Google Earth, 2010).
PHX (032 -002) (PER 02) SOLARGEN (05114110) HH 117261 PAGE 4
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Panoche Valley Solar Farm GlintlGlare Study
KVP Location Map
Q Key View Point Location
Representative Viewshed
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POWER ENGINEERS, INC.
1.2.2 3D Simulations
3D Animated Simulations: At each KVP, 3D simulations were developed to accurately create and
study the effects of glint and glare under different operation and lighting conditions. Visual analysts
reviewed the simulations and documented where and when glint/glare may occur throughout the day
and year. Each simulation was run for the 36, 24 and 12 degree off horizontal fixed positions (see
Inset 1 — PV Panel Positions). Results were documented and are located in Appendix A of this report.
Animation examples can be viewed from the accompanying DVD included with this report.
Photovoltaic Panels I Angles
12° 24° 36°
7=;�7WVI011il
INSET 1 - PV PANEL POSITIONS
The 3D simulations incorporated an accurate, computer generated, solar algorithm based on the
latitude and longitude of the actual project. All calculations were performed using 3D software,
designed for calculating and animating solar cycles. 3D models of the project were placed in the
exact geographic location as the project and the sun system. Sun calculations and results were based
on hours of operational daylight and solar clocks for the following times of year:
o Summer Solstice( June 21') - 14 hours 21 minutes of sunlight
• Sunrise:
5:21 a.m.
• Sunset:
7:42 p.m.
• Winter Solstice
(December 21" - 9 hours 57 minutes of sunlight
• Sunrise:
7:31 a.m.
• Sunset:
5:28 p.m.
• Fall Equinox (September 23`d) - 12 hours 05 minutes of sunlight
• Sunrise:
6:17 a.m.
• Sunset:
6:23 p.m.
• Spring Equinox
(March 21') - 12 hours 1 I minutes of sunlight
• Sunrise:
6:30 a.m.
• Sunset:
6:41 p.m.
According to a recent study, completed by SunPower Corporation on September 29, 2009, "The glare
and reflectance levels from a given PV system are decisively lower than the glare and reflectance
generated by the standard glass and common reflective surfaces in the environments surrounding the
given PV system." For purposes of this study however, POWER considered the worst case scenario
PHX (032 -002) (PER 02) SOLARGEN (05/14/10) HH 117261 PAGE 6
POWER ENGINEERS, INC.
and assigned materials to the 3D panel surfaces with the same reflectance values of glass. Refer to
Appendix B for the full report by SunPower Corporation.
1.3 RESULTS
KVP Glint and Glare Visibility: Glint and glare is a result of viewers seeing the reflection of the sun
(glint), or the corona around the sun (glare) in the PV panels. Due to minimum elevation change
between KVPs and the project, glint and glare will only occur during the summer months for KVPs
looking east and northeast to the project site during morning hours, and viewers looking west and
northwest to the project site during evening hours. KVPs north of the project area looking in a
southern direction will experience no glint or glare during any season. In all KVPs studied, glint
lasted approximately '/2 hour (see Appendix A for results and DVD for examples).
Panel position did change the time in which glint and glare was observed. Shifting the panel from 12
degrees to 24 degrees moved the time glint and glare was observed to one hour earlier in the morning,
and one hour later in the evening. Shifting the panel from 24 degrees to 36 degrees also moved the
glint and glare one hour earlier in the morning and one hour later in the evening. Following is a
detailed description of the glint and glare for each KVP (see Appendix A for detailed results):
• KVP 1 — Located southbound Little Panoche Road, just north of the northern project
boundary viewing to the south. KVP 1 will not experience glint or glare from the proposed
project, regardless of season or panel position.
• KVP 2 — Northbound Little Panoche Road, immediately north of the Project's south
boundary (within the development area) viewing to the north - northeast. Travelers heading
northbound may experience glint and glare during the morning and evening hours during the
summer months when the sun is low on the horizon. Glint and glare will be limited to
approximately '/2 hour, and located in the peripheral view of motorists and not in the
operational view of the motorist. Shifting panel position did not reduce the duration of glint
or glare observed in the simulations.
• KVP 3 — Eastbound Panoche Road, approximately 0.65 mile south of the southwest corner of
the proposed project site and 1.1 miles west of the intersection with Little Panoche Road,
viewing to the northeast. Eastbound motorists will experience approximately %2 hour of glint
and glare in the early morning during summer months only. During this %2 hour window, a
motorist heading east may experience glint and glare for up to four miles. No glint or glare
was observed for evening hours. Shifting panel position did not reduce the duration of glint or
glare observed in the simulations.
• KVP 4 — Northbound New Idria Road, approximately 0.5 miles southeast of the intersection
with Panoche Road, viewing to the north - northwest. Travelers heading northbound may
experience glint and glare during evening hours during the summer months when the sun is
low on the horizon. Glint and glare will be limited to approximately '/2 hour, and located in
the peripheral view of motorists and not in the operational view of the motorist. Simulations
determined shifting panel position from 36 to either 24 or 12 degrees removed the
occurrences of glint.
PHX (032 -002) (PER 02) SOLARGEN (05114110) HH 117261 PAGE 7
POWER ENGINEERS, INC.
• KVP 5 — Adjacent to Panoche Access Road and the southwest boundary of the Panoche Hills
WSA. KVP 5 will experience no glint or glare from the proposed project, regardless of
season or panel position.
• KVP 6 — Air traffic: The nearest airport (Pinnacles Ranch Airport) is 15 miles away from the
project site. No glint or glare will be visible to aircraft during takeoff and landing from this
airport. Intermittent private aircraft may cross near the project area but limited to a 1,000 feet
minimum altitude. No commercial spraying operations were identified in the area. Glint and
glare may be visible to aircraft during midmorning to afternoon hours for all positions
studied. These occurrences are dependent on altitude, relationship to the project area and
panel position.
1.4 CONCLUSIONS
Glint and Glare Visibility and Duration - Review of the simulations determined glint and glare will be
visible to KVPs, but limited to those with east and northeastern views in the morning, and west and
northwestern views in the evening (KVP 2, 3,4 ). Duration of glint and glare was approximately
hour, regardless of panel position. Summer months were the only season where glint and glare will
be visible to these viewpoints. Changes in panel position from 36 degrees to either 24 or 12 degrees
did result in a reduction of glint and glare for KVP 4. In all other cases, panel position yielded no
reduction in glint or glare except to shift the time in which it is observed (see Appendix A for detailed
results; see Figure 3 — PV Panel Angle Study and DVD for demonstration). By nature, PV panels are
designed to absorb as much of the solar spectrum as possible in order to convert sunlight to
electricity. Reflectivity levels of solar panels are "decisively lower" than standard glass and should
not pose a reflectance hazard to viewers (refer to glint and glare intensity section below for more
information).
• Motorists - Simulations demonstrated glint and glare will be visible to motorists in their
periphery for a brief period of time in the early morning or late evening during summer
months only. Glint and glare will occur within an approximate '/2 hour window of time.
Changes in panel position from 36 degrees to either 24 or 12 degrees did result in a reduction
of glint and glare for KVP 4. In all other cases, panel position yielded no reduction in glint or
glare except to shift the time in which it is observed. This may be beneficial in reducing glint
and glare for those commuting to and from work (see Appendix A for detailed results).
It is important to note that a motorist's vision is much different than that of a static KVP. In a
study completed by the Washington State Department of Transportation (DOT) (Schauman,
et. al 1992), it was determined that our visual system can be divided into two types; focal and
ambient.
"The visual system can also be divided in to focal and ambient vision. Focal
vision provides high resolution, detailed vision for identifying and evaluating
important information, such as hazards. Ambient vision is peripheral and
provides information on motion, locations and locomotion — it serves as a kind of
early warning system. If something catches our attention from the ambient
system, we turn our eyes to focus on its details. What the visual system of
someone moving at 55 miles per hour through the environment detects is different
PHX (032 -002) (PER 02) SOLARGEN (05114110) HH 117261 PAGE 8
12° Angle I dint and Glare visible at 6:37am
24° Angle I Glint and Glare visible at 7:18am
38' Angle I Glint and Glare visible at 8:49am
Figure 3 1 Photovoltaic Panels I Glint & Glare I Angle Differences
POWER
ENGINEERS
POWER ENGINEERS, INC.
than that detected by a person who is strolling or sitting. Furthermore, the driver's
vision is much more limited, because of the car, than the vision of a person
walking through the environment. A walker can see something of the
surroundings over a visual angle of about 180 degrees. A driver sees only about
20 percent of the scene."
• Air traffic — Private aircraft may cross the project area and potentially experience glint and
glare from solar operations. These occurrences are dependent on altitude, relationship to the
project area and panel position.
Glint and glare to aircraft should not be an issue, and in recent years, several large scale solar
projects have been completed and constructed at or near major airports without incident.
March 1 ", 2010 the second large -scale solar project was completed at the Denver
International Airport. The 1.6 MW system at the airport's fuel facility was comprised of
more than 7,300 Sharp Solar Panels. Since 2005, FedEx has been operating at the Oakland
FedEx International Airport Hub with more than 5,700 solar panels generating over 900 kW
of peak energy to help power their facility.
INSET 2 - OAKLAND FEDEX INTERNATIONAL AIRPORT HUB
Glint and Glare Intensity — As demand for solar energy increases, so has the concern for glint and
glare issues surrounding reflectivity of PV panels. Hazards including eye damage resulting from high
radiance (reflection) levels, and possible distractions to motorists and aircraft have been expressed.
Unlike collector solar systems where sunlight is collected in a mirror, focused and redirected to an
`engine', a PV panel is designed to absorb solar energy and convert it directly to electricity. As
determined in a recent technical notification, completed by SunPower Corporation, September 29,
2009, glare and reflectance levels from PV systems are described as follows (for the complete report,
pleased refer to Appendix B):
"The glare and reflectance levels from a given PV system are decisively lower than the
glare and reflectance generated by the standard glass and other common reflective surfaces
in the environments surrounding the given PV system. Concerning random glare and
PRX (032 -002) (PER 02) SOLARGEN (05/14/10)1919 117261 PAGE 10
POWER ENGINEERS, INC.
reflectance observed from the air: SunPower has several large projects installed near
airports or on air force bases. Each of these large projects has passed FAA or Air Force
standards and all projects have been determined as "No Hazard to Air Navigation ".
Although the possible glare and reflectance from PV systems are at safe levels and are
usually decisively lower than other standard residential and commercial reflective surfaces,
SunPower suggests that customers and installers discuss any possible concerns with the
neighbors /cohabitants near the planned PV system installation."
1.5 SOURCES
Ho, Clifford K., Cheryl M. Ghanbari, and Richard B. Diver. 2009. Hazard Analysis of Glint and
Glare from Concentrating Solar Power Plants, SolarPaces 2009, Berlin Germany. Ph.D.,
Sandia National Laboratories, Solar Technologies Department, P.O. Box 5800,
Albuquerque, NM 87185 -1127, USA Phone: 1 -505- 844 -2384, E -mail: ckho(a�,sandia.eov
Test Engineer, Sandia National Laboratories, Solar Technologies Department Ph.D.,
Sandia National Laboratories, Solar Technologies Department. September 15 -18, 2009.
Liang,Genevieve. 2010. Personal communication, May, 2010.
Schauman, Sally, J. Heerwagen, A. Vemez Moudon, B. Witherspoon, S. James and J. Mundee.
1992. Visual Perception of the Roadway and Roadside Elements by the Observer in
Motion, Final Report. Washington State Department of Transportation. WA -RD 283.1.
Olympia, Washington. December 1992.
SunPower. 2009. SunPower Solar Module Glare and Reflectance, Technical Report - *T09014.
SunPower Corporation, September 29, 2009.
PHX (032 -002) (PER 02) SOLARGEN (05114110) HH 117261 PAGE 11
POWER ENGINEERS, INC.
APPENDIX A - GLINT /GLARE RESULTS
PHX (032 -002) (PER 02) SOLARGEN (05114110) HH 117261 PAGE 12
36*
Angled P.V. - GLINT/GLARE
STUDY
Mir-
a r°n a
r4i a r°n
o
0 0 0 0
0
0
0 0 0 0 0 0
m o " Q
�f Vi Id ri ri W
W
N T M M M
M M M
M
M
N rV hl e'1 O
O
N
N N Id ri n Q
SPRING Date: 3 -21
SUMMER Date: 6 -21
NO GLINT /GLARE OBSERVED
FALL Date: 9 -23
WINTER Date: 12 -21
NL--. 24o
Angled P.V.
- GLINT/GLARE
STU 1
0 0 0
In Q In o m o m o m g c
ry
ry o M
p M o m o m o m Q In o m o
Vi lD b n n 4l 0 Ci Oi
1V N M1 T C O Vi VN l0 l0 n n N
SPRING Date: 3 -21
SUMMER Date: 6-21
NO GLINT /GLARE OBSERVED
FALL Date: 9 -23
WINTER Date: 12 -21
12"
Angled
P.V. - GLINT/GLARE
STUDY
°m
M O M O
M
0 a
O M Q C �4
o
w
a „
N
$
c m
g m m a
m
$
°mn °o
m a
�°IO n
N lO 10 ri , W
b
Vf bi N n ^M<
:...
F
�1
N
N :. M1a I
T .. t '
••
Y1 ..
,
N b 1� M
SPRING Date: 3 -21
SUMMER Date: 6 -2 1
NO GLINT /GLARE OBSERVED
FALL Date: 9 -23
WINTER Date: 12 -21
Note 1: Glint- A flash of light also known as a specular reflection, produced as a direct reflection of the sun on the surface of the P.V. Panel.
Note 2 : Glint /Glare study represents the total number of hours Glint /Glare may be visible from established Key View Points (KVP).
Note 3 : Refer to Glint /Glare reportfor methodology.
LEGEND KVP 1
Glint /Glare Visible - (N,NE,E,SE,S,SW,W,NW)indicates direction KOP will vim Glint/Glare PANOCHE VALLEY SOLAR FARM PROJECT GLINT /GLARE STUDY
No Glint or Glare Visible
No Sunlight POWER
ENGINEERS
3W
Angled P.V. - GLINT/GLARE
F
a
r°n
a
r4i a r°n
o
0
0
0
0
0
0 0 0 0 0 0 0
�f Vi rC ri ri W W N
T
M
M
M
M M M
M M
N rV
hl
nl
O
O
N N N rd ri h 4
SPRING Date: 3 -21
SUMMER Date: 6 -21
FALL Date: 9 -23
WINTER Date: 12 -21
24'Angledl
GLINT/GLARE
STUDY
0 0 0 0 0 0 0 0 0
$
°m
$
0
0 0 0 0 0 0 0 0 0 0 0
�n Q m o m o m o m
2i
c
ry
ry o rn
p
M
o m o m o m m o m o
Lo 'a b n n 4l D] Oi Gi
1V
N
M1 T C O Vi VN l W 0 l0 n n N
SPRING Date: 3 -21
SUMMER Date: 6 -21
FALL Date: 9 -23
WINTER Date: 12 -21
12*
Angled
P.V. - GLINT/GLARE
STUDY
°m
n -
N b b A , W
b
Vf
Ci
N
N
^1
M:...
<r M
H.. N
N:.
M1I T..
b'
••
Y1..
N b IO n r\ M
SPRING Date: 3 -21
SUMMER Date: 6 -21
FALL Date: 9 -23
WINTER Date: 12 -21
Note 1: Glint- A flash of light alsa known as a specular reflection, produced as a direct reflection of the sun on the surface of the P.V. Panel.
Note 2 : Glint /Glare study represents the total number of hours Glint /Glare may be visible from established Key View Points (KVP).
Note 3 : Refer to Glint /Glare report for methodology.
KVP 2
LEGEND
Glim/Gla re Visible - (N,NE,E,SE,S,SW,W,NW) indicates direction KOP will view Glint /Glare PANOCHE VALLEY SOLAR FARM PROJECT GLINT /GLARE STUDY
No Glint or Glare Visible
1f
No Sunlight � v POWER
ENGINE'
3W
Angled P.V. - GLINT/GLARE
F
a
r°n
a
r4i a r°n
o
0
m
0
o
0 m
0
0 m
0
m 0 0 0 0 0 0
�f Vi rC ri ri W W N
T
M
M
M
M M M
M M
N rV
hl
MI
g
O
O
Q
N
N N rd ri h 4
SPRING Date: 3 -21
SUMMER Date: 6 -21
FALL Date: 9 -23
WINTER Date: 12 -21
24'AngledP.V.-
GLINT/GLARE
STUDY
o 0
0
0
0 On 0 0 0 0 0 0 0 0 0
Mn p m o m o m o m
2i
c
ry
ry o rn
p
M
o m o m o m Q rn o m o
Yf lD b n n ao W e, Gi
1V
N
M1 an C O Vi VN b l0 n n N
SPRING Date: 3 -21
SUMMER Date: 6 -21
FALL Date: 9 -23
WINTER Date, 12 -21
12*
Angled
P.V. - GLINT/GLARE
STUDY
o
°m
°o
°m
a
p
w
m
Q
N b b A n, W
b
Vf
Ci
N
N
,:�
^1
M:...
N N
<r M
H.. N
N:.
M1I M1
b'
••
Y1..
N b IO n r\ M
SPRING Date: 3 -21
SUMMER Date: 6 -21
FALL Date: 9 -23
WINTER Date: 12 -21
Note 1: Glint- A flash of light also known as a specular reflection, produced as a direct reflection of the sun on the surface of the P.V. Panel.
Note 2 : Glint /Glare study represents the total number of hours Glint /Glare may be visible from established Key View Points (KVP).
Note 3 : Refer to Glint /Glare reportfor methodology.
KVP 3
LEGEND
Glin[ /G la re Visible - (N,NE,E,SE,S,SW,W,NW) indicates direction KOP will view Glint /Glare PANOCHE VALLEY SOLAR FARM PROJECT GLINT /GLARE STUDY
No Glint or Glare Visible
1f
No Sunlight � v POWER
ENGINE'
36*
Angled P.V. - GLINT/GLARE
F
a
r°n
a
r4i a r°n
o
0
0
0
m
-9.
0
m
0 0 0 0 0 0 0
o m o m o � o
�f Vi rC ri ri W
W
N
T
M
M
M
M M M
M M
N rV
hl
nl
O
N N N rd ri n Q
SPRING Date: 3 -21
SUMMER Date: 6 -21
FALL Date: 9 -23
WINTER Date: 12 -21
Fill 24'AngledP.V.-
GLINT/GLARE
STUDY
0 0 0 0 0 0 0 0 o a °m a
�n o �n o m o m o m g c
°m a
ry
°m o 0
ry o rn
0 0 0 0 0 0 0 0 0 0 0 0 0
o M o m o m o m o rn o m o
Vi b l0 n n 4l 0 Ci Oi
1V N M1 T C O Vi VN b l0 n n N
SPRING Date: 3 -21
SUMMER Date: 6-21
NO GLINT /GLARE OBSERVED
FALL Date: 9 -23
WINTER Date: 12 -21
12*
Angled
P.V. - GLINT/GLARE
STUDY
N lO 10 A ri, W
b
Vf Ci N n ^1
M:...
<r F
�I
N
N:. M1I T.. O'
••
Y1..
N b IO C\ n M
SPRING Date: 3 -21
SUMMER Date: 6 -21
NO GLINT /GLARE OBSERVED
FALL Date: 9 -23
WINTER Date: 12 -21
Note 1: Glint- A flash of light also known as a specular reflection, produced as a direct reflection of the sun on the surface of the P.V. Panel.
Note 2 : Glint /Glare study represents the total number of hours Glint /Glare may be visible from established Key View Points (KVP).
Note 3 : Refer to Glint /Glare reportfor methodology.
LEGEND KVP 4
lin
Gt/Glare Visible - (N,NE,E,SE,S,SW,W,NW) indicates direction KOP will view Glint Glare PANOCHE VALLEY SOLAR FARM PROJECT GLINT /GLARE STUDY
No Glint or Glare Visible
1f
No Sunlight � v POWER
ENGINE'
36*
Angled P.V. - GLINT/GLARE
STUDY
° °°°°
m o m g
m
o
0 m o o � C o
rV hl nl O
O
N
N N
SPRING Date: 3 -21
SUMMER Date: 6 -21
NO GLINT /GLARE OBSERVED
FALL Date: 9 -23
WINTER Date: 12 -21
24'AngledP.V.-
GLINT/GLARE
STUDY
0 0 0
�n Q �n o m o m o m g c
ry
0
ry o M
0 0 0 0 0 0 0 0 0 0 0 0 0
p M. o m o m o m Q rn o m o
Vi lD b n n 4l 0 en o,
1V N M1 T C O Vi VN l0 l0 n n N
SPRING Date: 3 -21
SUMMER Date: 6-21
NO GLINT /GLARE OBSERVED
FALL Date: 9 -23
WINTER Date: 12 -21
12*
Angled
P.V. - GLINT/GLARE
STUDY
M O M D m O
M
O M Q C
w
N
$
In
m
N lO 10 A ri, W
b
Vf Ci N n ^1
M:...
N
<r F
�1
N
N:. M1I T.. t'
••
Y1..
N b IO C\ n M
SPRING Date: 3 -21
SUMMER Date: 6 -21
NO GLINT /GLARE OBSERVED
FALL Date: 9 -23
WINTER Date: 12 -21
Note 1: Glint- A flash of light also known as a specular reflection, produced as a direct reflection of the sun on the surface of the P.V. Panel.
Note 2 : Glint /Glare study represents the total number of hours Glint /Glare may be visible from established Key View Points (KVP).
Note 3 : Refer to Glint /Glare reportfor methodology.
LEGEND KVP 5
lin
Gt/Glare Visible - (N,NE,E,SE,S,SW,W,NW) indicates direction KOP will view Glint Glare PANOCHE VALLEY SOLAR FARM PROJECT GLINT /GLARE STUDY
No Glint or Glare Visible
1f
No Sunlight � v POWER
ENGINE'
POWER ENGINEERS, INC.
APPENDIX B - SUNPOWER SOLAR MODULE GLARE AND
REFLECTANCE
PHX (032 -002) (PER 02) SOLARGEN (05114/10) HE 117261 PAGE 13
SUNPOWER CORPORATION DATE: September 29, 2009
Tech Note Title & Number: SunPower Solar Module Glare And Reflectance, *T09014 DMS #: 001 -56700 Rev. **
Technical Notification
TITLE: SunPower Solar Module Glare and Reflectance
AUTHORS: Technical Support
APPLICATION: Residential/ Commercial
SCOPE: SunPower Modules
SUMMARY:
The objective of this document is to increase awareness concerning the possible glare and reflectance
impact of PV Systems on their surrounding environment.
The glare and reflectance levels from a given PV system are decisively lower than the glare and
reflectance generated by the standard glass and other common reflective surfaces in the environments
surrounding the given PV system. Concerning random glare and reflectance observed from the air:
SunPower has several large projects installed near airports or on air force bases. Each of these large
projects has passed FAA or Air Force standards and all projects have been determined as "No Hazard to
Air Navigation ". Although the possible glare and reflectance from PV systems are at safe levels and are
usually decisively lower than other standard residential and commercial reflective surfaces, SunPower
suggests that customers and installers discuss any possible concerns with the neighbors /cohabitants near
the planned PV system installation.
DETAILED EXPLANATION:
In general, since the whole concept of efficient solar power is to absorb as much light as possible while
reflecting as little light as possible, standard solar module produces less glare and reflectance than
standard window glass. This is pointed out very well in US Patent #6359212 which explains the
differences in the refraction and reflection of solar module glass versus standard window glass. Solar
modules use "high- transmission, low iron glass" which absorbs more light, producing small amounts of
glare and reflectance than normal glass.
In the graph below, we show the reflected energy percentages of sunlight, of some common residential
and commercial surfaces. The legend and the graph lists the items from top to bottom in order of the
highest percentage of reflected energy.
SunPower Corporation Proprietary Information. Electronically Controlled. Latest Revision is in the Document Management System.
A printed copy is uncontrolled and maybe outdated unless it bears a red ink "controlled copy" stamp. Form # 001 -51499 Rev *A
SUNPOWER CORPORATION DATE: September 29, 2009
Tech Note Title & Number: SunPower Solar Module Glare And Reflectance, *T09014 DMS #: 001 -56700 Rev. **
Common Reflective Surfaces
..iel &reaiderstial lV suite. environs
200.00 4
90.00%
110.00%
7o do%
60.00%
50.00%
00.OPA �
10.00%
20.00% -
40.00%
000%
a I5 W 45 60
Incident angle of Sigridight
Im aegreeai
75
—sxel
—Snow
(fresh. Raked
— Standard Glus
pi.ml.
— Olattit
7 Smooth Weler
Solar Glesa Ihigh Fe„
mnzmsslon, lav "oil
90 —Soler Cams w /AR
comng
It should be noted that the reflected energy percentage of Solar Glass is far below that of a standard glass
and more on the level of smooth water. Also, below are the ratios of the common reflective surfaces:
a.00%
Common Reflective Surfaces (2) Wr vlr4tmMatts in rammerdal a re44dentlal w v atem enWrunmemsi — Standard Glass
n � IS sa' us�o
Incident Angle In degreoz
vlexiglas
Plastic
smooth water
Solnr Gloss (hieh
light
trqm1smizsian. bw
— Seef Q. w /AR
coating
Light beam physics resolves that the least amount of light is reflected when the beam is the normal, in
other words, least light energy is reflected when the beam is at 0 degrees to the normal. The chart below
is a result of light beam physics calculations:
SunPower Corporation Proprietary Information. Electronically Controlled. Latest Revision is in the Document Management System.
A printed copy is uncontrolled and maybe outdated unless it bears a red ink "controlled copy" stamp. Form # 001 -51499 Rev *A
d o
0�
n p
is.sio%
6
c
i
ioom5
ti
a.00%
Common Reflective Surfaces (2) Wr vlr4tmMatts in rammerdal a re44dentlal w v atem enWrunmemsi — Standard Glass
n � IS sa' us�o
Incident Angle In degreoz
vlexiglas
Plastic
smooth water
Solnr Gloss (hieh
light
trqm1smizsian. bw
— Seef Q. w /AR
coating
Light beam physics resolves that the least amount of light is reflected when the beam is the normal, in
other words, least light energy is reflected when the beam is at 0 degrees to the normal. The chart below
is a result of light beam physics calculations:
SunPower Corporation Proprietary Information. Electronically Controlled. Latest Revision is in the Document Management System.
A printed copy is uncontrolled and maybe outdated unless it bears a red ink "controlled copy" stamp. Form # 001 -51499 Rev *A
SUNPOWER CORPORATION DATE: September 29, 2009
Tech Note Title & Number: SunPower Solar Module Glare And Reflectance, *T09014 DMS #: 001 -56700 Rev. **
Common Refleetive
Incident angle in degrees
surfecee
Un: unaln4e . a
nro.pv.v.mma)nm
O
15
SO
45
60
75
90
steel
36J3%
39.22%
46.34%
57.13%
)0.02%
83.15%
94.40%
Snow
dresn, natev)
21.63%
2309%
27.29%
33.63%
41.23%
46.%%
55.59%
StGlat.
Gloss
8.44%
9.01%
10.65%
19.12%
16.09%
19.10%
21.69%
Material
pleelelasa
8.00%
8.54%
10.09%
12.44%
15.25%
18.11%
20.56%
Reflectivity
lsswcemor
�a�nrlgne
Vpsfie
699%
746%
8.82%
10 -87%
13.93%
1563%
1797%
rMacte4)
Smooth
Water
407%
4.35%
5.14%
6.33%
7.76%
9.22%
10.47%
Soler Gle44
(blim l4r,'
3 99%
4.26%
5.03%
6 20%
7.61%
9.03%
1026%
low mn)
Solar Gl45s
w /AA coating
247°4
266%
3.12%
3.Bn%
471%
S59%
6.3SV.
Mote: Index of refraction values may vary slightly depending on suppliers and reference dmumentation. The values for the above calculations
are averages or single values obtained from the list of references for this documenll.
Important reference - "'Stipples glass ": In addition to the superior refractive /reflective properties of solar
glass versus standard glass, SunPower uses stippled solar glass for our modules. Stippled glass is used
with high powered telescopes and powerful beacons and lights. The basic concept behind stippling is for
the surfaces of the glass to be textured with small types of indentations. As a result, stippling allows
more light energy to be channeled/ transmitted through the glass while diffusing the reflected light
energy. This concept is why the reflection of off a SunPower solar module will look hazy and less- defined
than the reflection from standard glass, this occurs because the stippled SunPower glass is transmitting a
larger percentage of light to the solar cell while breaking up the intensity of the reflected light energy.
SUMMARY /ACTION REQUIRED:
The studies, data and light beam physics behind the charts and graphs prove beyond a reasonable doubt
that solar glass has less glare and reflectance than standard glass. The figures also make it clear that the
difference is very decisive between solar glass and other common residential /commercial glasses. In
addition, not to be lost in the standard light /glass equations and calculations, the SunPower solar glass is
stippled and has a very photon- absorbent solar cell attached to the back side, contributing two additional
factors which results in even less light energy being reflected.
SunPower Corporation Proprietary Information. Electronically Controlled. Latest Revision is in the Document Management System.
A printed copy is uncontrolled and maybe outdated unless it bears a red ink "controlled copy" stamp. Form # 001 -51499 Rev *A
SUNPOWER CORPORATION DATE: September 29, 2009
Tech Note Title & Number: SunPower Solar Module Glare And Reflectance, *T09014 DMS #: 001 -56700 Rev. **
REGIONAL CONTACTS:
************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
EU Toll Free number: SunPower Technical Support, 00800 - SUNPOWER (00800- 78676937)
• For inquiries by e-mail, please use:
• Spain: SunPower - Soporte Tecnico Espana: soportetecnico (osunoowercoro.com
• Germany: SunPower - Technischer Support: tech nischersuonort (cbsunoowercoro.com
• Italy: SunPower - Servizio Tecnico Italia: serviziotecnico (cbsunpowercorp.com
• France: SunPower - Support Technique France: su000rttechnique sunpowercorp.com
USA Toll Free number: SunPower Technical Support, 1- 800 - SUNPOWER (786 - 76937)
For inquiries by e-mail, please use: Technicalsu000rt (o)Sunoowercoro.com
Australia ( Sunpower Corporation Australia PTY LTD) contact number: +61 -8- 9477 -5888.
Korea - SPK (SunPower Korea) contact number: (02) 3453 -0941
REFERENCES:
• Center for Sustainable Building Research. College of Dean - University of Minnesota. All rights Reserved. 1DP activity by the
University of Minnesota and Lawrence Berkeley National Laboratory
• H.K Pulker, Coatings on Glass, (1999), Zed, Elsevier, Amsterdam
• C.G Granqvist, Materials Science for Solar Energy Conversion Systems, (1991), Pergamon, G.B
D. Chen, anti - reflection (AR) coatings made by sol -gel processes: A review, Solar energy Materials and Solar Cells, 68, (2000), 313-
336
• P. Nostell, A. Roos, B. Karlsson, Antireflection of glazings for solar energy applications, Solar Energy Materials and Solar Cells, 54,
(1998), 23 -233
M. Fukawa, T. Ikeda, T. Yonedaans K. Sato, Antireflective coatings y single layer with refractive index of 1.3, Proceedings of the V
International Conference on Coatings on Glass (ICGG), (2000), 257 -264
• I Karlsson and A. Roos, Modeling the angular behavior of the solar energy transmittance of windows, Solar Energy, 69, 4, (2000)
• J. Karlsson, B. Karlsson and A. Roos, A Simple model for assessing the energy efficiency of windows, In Press, Energy and Buildings
SunPower Corporation Proprietary Information. Electronically Controlled. Latest Revision is in the Document Management System.
A printed copy is uncontrolled and maybe outdated unless it bears a red ink "controlled copy" stamp. Form # 001 -51499 Rev *A
SUNPOWER CORPORATION DATE: September 29, 2009
Tech Note Title & Number: SunPower Solar Module Glare And Reflectance, *T09014 DMS #: 001 -56700 Rev. **
Technical Notification
Materials Received
Item No. 2e
TITLE: SunPower Solar Module Glare and Reflectanc P Solar Energy System Installations
A2010 -113
AUTHORS: Technical Support
APPLICATION: Residential/ Commercial
SCOPE: SunPower Modules
SUMMARY:
The objective of this document is to increase awareness concerning the possible glare and reflectance
impact of PV Systems on their surrounding environment.
The glare and reflectance levels from a given PV system are decisively lower than the glare and
reflectance generated by the standard glass and other common reflective surfaces in the environments
surrounding the given PV system. Concerning random glare and reflectance observed from the air:
SunPower has several large projects installed near airports or on air force bases. Each of these large
projects has passed FAA or Air Force standards and all projects have been determined as "No Hazard to
Air Navigation ". Although the possible glare and reflectance from PV systems are at safe levels and are
usually decisively lower than other standard residential and commercial reflective surfaces, SunPower
suggests that customers and installers discuss any possible concerns with the neighbors /cohabitants near
the planned PV system installation.
DETAILED EXPLANATION:
In general, since the whole concept of efficient solar power is to absorb as much light as possible while
reflecting as little light as possible, standard solar module produces less glare and reflectance than
standard window glass. This is pointed out very well in US Patent #6359212 which explains the
differences in the refraction and reflection of solar module glass versus standard window glass. Solar
modules use "high- transmission, low iron glass" which absorbs more light, producing small amounts of
glare and reflectance than normal glass.
In the graph below, we show the reflected energy percentages of sunlight, of some common residential
and commercial surfaces. The legend and the graph lists the items from top to bottom in order of the
highest percentage of reflected energy.
SunPower Corporation Proprietary Information. Electronically Controlled. Latest Revision is in the Document Management System.
A printed copy is uncontrolled and maybe outdated unless it bears a red ink "controlled copy" stamp. Form # 001 -51499 Rev *A
SUNPOWER CORPORATION DATE: September 29, 2009
Tech Note Title & Number: SunPower Solar Module Glare And Reflectance, *TO9O14 DMS #: 001 -56700 Rev. **
It should be noted that the reflected energy percentage of Solar Glass is far below that of a standard glass
and more on the level of smooth water. Also, below are the ratios of the common reflective surfaces:
Common Reflective Surfaces
(in commercial ®residential PV system enwi --MS)
— Stondrd Glass
lOp
—stall
O
>b
J9
— Plastic
m
—Snow
tl
(fresh,OAket)
`e d
lOAIIY
9
— Sbn0ar0 Glass
W
WOM
1 F:
OCO
— Pkuglass
m
Mom
- --AM
— Plastc
W
y y
30.00%
fight
Might
d
ti
ssion, lova
Yonl
a—
EO.op% -
—SmeaM Weser
W
5,00% -
ccagng
C
000%
- -- SolarGess (high Fcht
0 QO% -
InnsmsslPn, IoW non)
0
15 30 15 60 75 90
3.1.' Gen' w /AR
Incident angle of Sunlight
_owng
lie de,—)
It should be noted that the reflected energy percentage of Solar Glass is far below that of a standard glass
and more on the level of smooth water. Also, below are the ratios of the common reflective surfaces:
Light beam physics resolves that the least amount of light is reflected when the beam is the normal, in
other words, least light energy is reflected when the beam is at 0 degrees to the normal. The chart below
is a result of light beam physics calculations:
SunPower Corporation Proprietary Information. Electronically Controlled. Latest Revision is in the Document Management System.
A printed copy is uncontrolled and maybe outdated unless it bears a red ink "controlled copy" stamp. Form # 001 -51499 Rev *A
Common Reflective Surfaces (2)
Irnamoaent wnc�es le <ammertlel a rNMMW w spten nwFOmeosesj
— Stondrd Glass
25.
Plexlgbss
O
20.004
J9
— Plastic
n
tl
`e d
Smooth water
S C
w d
m
1000%
- --AM
Sob, GI.,thich
tl
fight
Might
m '^-
ssion, lova
Yonl
—SOhr Glazz w /AR
5,00% -
ccagng
000%
Incident Angle In dogrooc
Light beam physics resolves that the least amount of light is reflected when the beam is the normal, in
other words, least light energy is reflected when the beam is at 0 degrees to the normal. The chart below
is a result of light beam physics calculations:
SunPower Corporation Proprietary Information. Electronically Controlled. Latest Revision is in the Document Management System.
A printed copy is uncontrolled and maybe outdated unless it bears a red ink "controlled copy" stamp. Form # 001 -51499 Rev *A
SUNPOWER CORPORATION DATE: September 29, 2009
Tech Note Title & Number: SunPower Solar Module Glare And Reflectance, *T09014 DMS #: 001 -56700 Rev. **
clv°
Incident angle In degrees
Surfaces
lin w.muMfKemimnmemv
O
15
30
n5
60
75
90
Steel
3673%
39.221,
46.34%
57.11%
70.02%
83.15%
94.40%
Sn
Sn
the fe eeYi fla
21.63%
2309%
2).29%
33.63%
41.25%
4a 96%
55.59%
Standard
Glass
ass
644%
SM16
10.65%
13.12%
16.09%
19.106
21.69%
Material
Olexislas5
8.00%
8.54%
10.09%
12.44%
15.25%
16.11%
20.56%
acflcaivity
Warrenton
el.a.n
Plastic
6.99%
7.46%
8.82%
10-87%
1333%
1583%
12.92%
.oflo<xeel
Smooth
d,07%
4.35%
5.14%
6.33%
7.76%
9.22%
10.47%
Wa er
Solar Glass
Inlen benc
transmission
399%
426%
503%
6.20%
761%
903%
1026%
le.v lmn)
Solar Glass
W /Ali coating
2 42 °s
164%
3.12%
3.81%
471%
559%
M1.35%
(Note: Index of retraction values may vary slightly deoendine on suooliers and reference documentation. The values for the above calculations
e averages or SIr181e values obtained from the list of references for this document.
Important reference - "Stipples glass ": In addition to the superior refractive /reflective properties of solar
glass versus standard glass, SunPower uses stippled solar glass for our modules. Stippled glass is used
with high powered telescopes and powerful beacons and lights. The basic concept behind stippling is for
the surfaces of the glass to be textured with small types of indentations. As a result, stippling allows
more light energy to be channeled/ transmitted through the glass while diffusing the reflected light
energy. This concept is why the reflection of off a SunPower solar module will look hazy and less- defined
than the reflection from standard glass, this occurs because the stippled SunPower glass is transmitting a
larger percentage of light to the solar cell while breaking up the intensity of the reflected light energy.
SUMMARY /ACTION REQUIRED:
The studies, data and light beam physics behind the charts and graphs prove beyond a reasonable doubt
that solar glass has less glare and reflectance than standard glass. The figures also make it clear that the
difference is very decisive between solar glass and other common residential /commercial glasses. In
addition, not to be lost in the standard light /glass equations and calculations, the SunPower solar glass is
stippled and has a very photon- absorbent solar cell attached to the back side, contributing two additional
factors which results in even less light energy being reflected.
SunPower Corporation Proprietary Information. Electronically Controlled. Latest Revision is in the Document Management System.
A printed copy is uncontrolled and maybe outdated unless it bears a red ink "controlled copy" stamp. Form # 001 -51499 Rev *A
SUNPOWER CORPORATION DATE: September 29, 2009
Tech Note Title & Number: SunPower Solar Module Glare And Reflectance, *T09014 DMS #: 001 -56700 Rev. **
REGIONAL CONTACTS:
************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
EU Toll Free number: SunPower Technical Support, 00800- SUNPOWER (00800- 78676937)
• For inquiries by e-mail, please use:
• Spain: SunPower - Soporte Tecnico Espana: soportetecnico(c sunpowercoro.com
• Germany: SunPower - Technischer Support: tech nischersupport (alsunnowercorD.com
• Italy: SunPower - Servizio Tecnico Italia: serviziotecnico (cbsunpowercorp.com
• France: SunPower - Support Technique France: supoorttechnique (a)sunpowercorp.com
USA Toll Free number: SunPower Technical Support, 1- 800 - SUNPOWER (786 - 76937)
• For inquiries by e-mail, please use: Technicalsupport (c@SunpowercorD.com
Australia ( Sunpower Corporation Australia PTY LTD) contact number: +61 -8- 9477 -5888.
Korea - SPK (SunPower Korea) contact number: (02) 3453 -0941
REFERENCES:
• Center for Sustainable Building Research. College of Dean - University of Minnesota. All rights Reserved. 7DP activity by the
University of Minnesota and Lawrence Berkeley National Laboratory
• H.K Pulker, Coatings on Glass, (1999), Zed, Elsevier, Amsterdam
• C.G Granqvist, Materials Science for Solar Energy Conversion Systems, (1991), Pergamon, G.B
D. Chen, anti - reflection (AR) coatings made by sol -gel processes: A review, Solar energy Materials and Solar Cells, 68, (2000), 313-
336
P. Nostell, A. Roos, B. Karlsson, Antireflection of glazings for solar energy applications, Solar Energy Materials and Solar Cells, 54,
(1998),23-233
M. Fukawa, T. Ikeda, T. Yonedaans K. Sato, Antireflective coatings y single layer with refractive index of 1.3, Proceedings of the V
International Conference on Coatings on Glass (ICGG), (2000), 257 -264
1. Karlsson and A. Roos, Modeling the angular behavior of the solar energy transmittance of windows, Solar Energy, 69, 4, (2000)
1. Karlsson, B. Karlsson and A. Roos, A Simple model for assessing the energy efficiency of windows, In Press, Energy and Buildings
SunPower Corporation Proprietary Information. Electronically Controlled. Latest Revision is in the Document Management System.
A printed copy is uncontrolled and maybe outdated unless it bears a red ink "controlled copy" stamp. Form # 001 -51499 Rev *A
Correspondence
Item No. 2f
Solar Energy System Installations
Nueno, Fern PA2010 -113
From: Derek Spalding (OC NECA) (derekspalding @sbcglcbal netj
Sent: Thursday, February 17, 20114 34 PM
To: Nueno, Fern
Cc: derek@ocneca.org
Subject: Newport Beach Solar Ordinance
Attachments: Sharp - Anti- Reflective Glass Letter.pdf; FAA - Guide on Airport Solar Projects.pdf
Hello Fern,
From the contractor's perspective, some concerns have been raised on how to interpret the section of the proposed
regulations requiring the anti -glare or non - reflective coating on all solar panels.
The current language (3b) states, "Solar collector panels shall have an anti -glare or non - reflective coating."
A number of leading solar panel manufacturers produce panels with anti - reflective coated glass and it is our
understanding that those panels would be allowed. However, a leading American manufacturer of panels, Sharp USA,
does not use anti - reflective coated glass, but the solar cells that compose their panels have an anti - reflective coating.
Please refer to the attached letter from Sharp USA for more information on their products and anti - reflective glass.
Additional concern arises with the application of an anti - reflective coating to the panels, it is almost certain that applying
any aftermarket film or coating to panels would void the panel manufacturers warranty. Warranties are extremely
important to the end user since the life of these systems is over a 30+ year period.
Please find the following reports attached to this email. All these reports address reflection and glare from solar
systems in great detail.
A November 2010 report from the Federal Aviation Administration titled "Technical Guidance for Evaluating Selected
Solar Technologies on Airports" (The FAA report's section on reflection starts on page 37 of their report).
A September 2009 report from Sun Power Corp., a leading solar panel manufacturer, which examines the reflectivity of
common surfaces surrounding PV equipment and panels and different angles of incidence. (attached to following email)
A May 2010 report from Power Engineers on a glare study for a solar farm near Fresno. (attached to following email)
Also, it has been brought to my attention that the County of San Diego has specific regulations for solar mounted PV
systems including setbacks, height restrictions of no more than 30" off the ground for the system, and erosion control
measures. According to an active San Diego solar contractor, there are some communities where ground mounted
systems are popular and these regulations have helped mitigate glare concerns. I will try to forward you more
information on this.
We appreciated the opportunity to meet with you and Jim Campbell back in December regarding the ordinance and
would welcome the opportunity to meet with you again and discuss some sections where we have concerns.
Please submit this email and all attachments as public record and forward to the Planning Commissioners. 1 will be
sending a following email since some of the attachments are large files.
Thanks,
Derek
Nueno, Fern
From:
Nueno, Fern
Sent:
Thursday, February 17, 2011 5:20 PM
To:
Nueno, Fern
Subject:
FW: NB Solar Ordinance
Attachments:
Glare Study for Solar Project.pdf; SunPower Glare and Reflectance Report.pdf
Fern Nueno, LEED AP
Assistant Planner
Planning Division
fnuenoCa.newportbeachca.aov
(949)644 -3227
City of Newport Beach ) Community Development Department ', 3300 Newport Blvd) Newport Beach, CA 92663
A responsim knowledgeable team ofprofessionals guiding community development in the public interest
From: Derek Spalding (OC NECA) [ mailto :derekspalding @sbcglobal.net]
Sent: Thursday, February 17, 20114:39 PM
To: Nueno, Fern
Cc: derek @ocneca.org
Subject: RE: NB Solar Ordinance
Fern,
This email contains additional attachments related to my previous email.
Thanks,
Derek
Derek Spalding
Business Development
Orange County Chapter
National Electrical Contractors Association (NECA)
Office (714) 634 -8777
Cell (949) 637 -2518
derek @ocneca.ora