Integrated Anaerobic Digester SystemProgram and RFP Overview

Clint FandrichRFP Seminar – University of Wisconsin-Oshkosh

February 1, 2017

Presentation Contents

• Introduction to the Program• Details of the Request for Proposals

(RFP)• Project Guidelines• Document Corrections and

Clarifications

1

Program Introduction

• OEI is housed at the Public Service Commission of Wisconsin (PSC)

• The Interagency Working Group is also comprised of the Department of Natural Resources (DNR) and the Department of Agriculture, Trade and Consumer Protection (DATCP)

2

OEI and the Interagency Group

Program Introduction

• Commissioned studies in early 2016

• The Interagency WG then worked on a plan and engaged stakeholders

• The PSC made $20 million available through Focus on Energy

• The RFP was crafted to address 3 primary challenges…

3

How did we arrive at the RFP?

RFP Project Details

4

Project Timeline

RFP Project Details

5

Project Timeline

RFP Project Details

• Biogas Energy Production and Utilization

• Water Treatment and Recovery• Nutrient Management

Improvements• Formation of consortia

• Customer Cost-Effectiveness

6

Evaluation Criteria

RFP Project Details

7

Evaluation Criteria

RFP Project Details

8

Evaluation Criteria

RFP Project Details

9

Evaluation Criteria

RFP Project Details

10

Evaluation Criteria

• There is a section in the RFP dedicated to Customer Cost-Effectiveness starting on pg. 25

RFP Project Details

11

Evaluation Criteria

• Project budgets• Leveraging other funds?

RFP Project Details

12

Evaluation Criteria

• Project budgets• Leveraging other funds?

RFP Project Details

13

Evaluation Criteria

RFP Project Details

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Evaluation Criteria

RFP Project Details

• Biogas Energy• 50 points, 25 required

• Water Treatment• 50 points, 25 required

• Nutrient Management• 50 points, 25 required

• Customer Cost-Effectiveness & Focus Impact• 75 points

• System Design and Optimization• 25 points

• Project Location• 50 points, 20 required

• Capability of Vendor• 50 points, 25 required

• 350 points total, 235 min.15

Evaluation Criteria - Overview

Project Guidelines

• A proposed project must result in a reduction in demand of electricity and/or natural gas at a Focus-participating utility service territory• Questions about forming consortia

• A proposal can leverage existing AD infrastructure under certain circumstances• Increasing the output of a system• Reducing the parasitic load• Adding renewable cogeneration

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Eligibility – pg. 9-12, 24

Project Guidelines

16

Eligibility – pg. 2

Project Guidelines

• Focus incentives act as a reimbursement of eligible costs (pg 2) after installation, operation and verification

• Reporting requirements• Reporting is for project progress, not

operations• Once the project has been evaluated and

verified as ‘operational’ by Focus staff, the reporting period and requirements end

• After the Date of Award and contracting, changes to the project scope could change the incentive amount

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Payment and Reporting – pg. 5-8

Project Guidelines

• Cost-Effectiveness is:

Proposed annual kWh and/or kBTUproduced or offset

Eligible project costs

• Other cost-effectiveness considerations: Capital expense of water treatment technologies and annual operation and maintenance

• Project economics must include interconnection studies and costs, if the applicant is proposing electricity generation

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Customer Cost-Effectiveness – pg. 25

Project Guidelines

• Utilization of the proposed system to meet Customer’s energy needs

• Optimization of engineering design• waste heat utilization/management, for example

• Reduction in total manure transport mileage OR reduced piping mileage

• System production aligns with peak demand schedule (if applicable)

• System reduces energy use by systems upstream or downstream of the project • Parasitic loads

• Use of off-farm substrates• Efficiency of pathogen removal• Treatment of waste streams to allow alternative

disposal methods

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System Design and Opt – pg. 24

Corrections and Clarifications

20

Table 7 – Project Timeline –pg. 26

Corrections and Clarifications

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Table 7 – Project Timeline –pg. 26

• Instead of “kBTU or Thermsproduced” it should say “kWh or Therms produced”.• Project eligibility: Must result in a

reduction in demand of electricity and/or natural gas in a Focus-participating utility service territory

22

Focus Incentive Levels – pg. 5

Corrections and Clarifications

• The statement “Total energy produced can exceed a customer’s annual demand” is true!• Applicants should provide relevant

utility data to demonstrate annual energy consumption before the proposed project is implemented

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System Size – pg. 11

Corrections and Clarifications

• Soft deadline of December 31, 2018• This is a preferred completion date

by Program Administrators, but not a hard deadline for a project’s installation and verification

• Within 120 days of Date of Award, project managers will be expected to “Ramp-up Activities”• Ramp-up activities refer to the first step(s)

taken toward implementation of a renewable energy Project. Examples include issuing Purchase or Work Orders, filing for Building Permits, and soliciting bid proposals.

24

Project Deadlines

Corrections and Clarifications

• There are no requirements in the RFP for technologies proposed to be manufactured in Wisconsin or the US

• Evaluation will not consider the origin of the components of the proposed project

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Made in Wisconsin

Corrections and Clarifications

• “Can the proposal be the initial steps of the so-called ‘Phoenix Project’?”• While the Interagency WG does not

explicitly endorse the findings of the study, applicants are welcome to use it as a tool in building their proposals

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In Relation to Previous Studies

Corrections and Clarifications

Thank you!

Clint FandrichClinton.Fandrich@Wisconsin.gov

(608) 267-7854