TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for a solar self-generation energy system interconnection agreement between the City of Long Beach, the City of Los Angeles Department of Water and Power, and California Resources Corporation. (Citywide)
DISCUSSION
Long Beach Energy Resources (ER) is proposing to add approximately one megawatt of solar power to its oil operating area. The only location with enough acreage for the solar photovoltaic panels is at Pier A West which resides within the City of Los Angeles Department of Water and Power (LADWP) operating region. The solar system will be installed behind the electrical meter. The proposed layout is shown in Attachment A. The oil operating area is within the Long Beach Harbor District, but on land controlled by the City of Long Beach (City). This is not a power purchase agreement, but a recommendation requesting to enter into the interconnection agreement between LADWP, California Resources Corporation (CRC) as the City’s contractor, and the City as property owner.
The solar photovoltaic system (system) will be purchased and installed by CRC. The one-time cost of purchasing and installing the solar photovoltaic system is estimated at $3 million, offset from oil field revenues. CRC will be responsible for the system operations and maintenance. The project has a five-year payout to be realized through reduced electricity costs and has a positive net present value of $1 million. In addition to ongoing reductions to electricity costs, the project will increase reliability of the power supply and reductions in emissions. More importantly, the system will reduce the environmental impact of oil operations by offsetting an estimated 377 metric tons of CO2e annually. The estimated CO2e reduction is based on a blended grid carbon intensity value reported by the California Environmental Protection Agency.
This matter was reviewed by Principal Deputy City ...
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