Arlington Creates Legal Authority for Solar-on-Schools Power Purchase Agreements; Plans October RFP

By Will Driscoll

Clearing a legal hurdle that may affect other Virginia school systems, Arlington Public Schools has created a new type of purchasing authority so it may enter into power purchase agreements (PPAs) for solar power.

Arlington’s School Board created that authority by amending its purchasing resolution at its April 20, 2017 meeting, by unanimous vote.  The school system staff plans to issue a request for proposals (RFP) for solar power in October, and complete its first PPA project by September 2018, according to a draft timetable.

 
The Arlington School Board voted unanimously to create the authority to enter into solar power purchasing agreements, on April 20, 2017.  From left: Tannia Talento, Barbara Kanninen, Nancy Van Doren, James Lander, and Reid Goldstein.  (Photo credit: author)

Arlington officials concluded that the previous version of its purchasing resolution, which satisfied the requirements of the Virginia Public Procurement Act, did not permit procuring construction or capital projects through “alternate methods” such as power purchase agreements (PPAs).

Arlington Public Schools (APS) officials determined that such alternate methods of procurement must meet the requirements of Virginia’s Public-Private Educational Facilities and Infrastructure Act of 2002 (PPEA).

Specifically, according to the approved amendment, “Section 56-575.16 of the PPEA requires that APS may not consider any Unsolicited PPEA Proposal nor solicit PPEA Bids or Proposals for a Qualifying Project until APS has adopted and made publicly available guidelines that are sufficient to enable APS to comply with the PPEA.  These Guidelines are adopted by the [School] Board for the purpose of satisfying that requirement.”

APS purchasing office staff and legal counsel prepared the proposed amendment, modeling it on procedures outlined in the PPEA.  The new provisions, now incorporated in the APS Purchasing Resolution, call for competitive bidding on any PPA project, and require School Board approval before any PPA agreement is signed.

“This is a really big deal for us,” said school board member Barbara Kanninen.  “We are opening up the opportunity to have solar power for Arlington Public Schools.  That’s really forward thinking, it’s smart energy use and I’m fully supportive of this.”

School board member James Lander noted the opportunity “to walk the walk that we talk when we talk about being a progressive environment, a forward-thinking community.” He added that solar on schools “will allow instructional opportunities for our students.”

In public comments prior to the vote, Tim Whitehouse, executive director of Chesapeake Physicians for Social Responsibility, said that the group’s 150 members in Arlington “strongly support the effort of the Arlington School Board to enter into power purchase agreements for solar.”  He added, “We’ve seen in schools where this happens, children get interested in renewable energy and the school systems develop programs that help educate the kids.”  Will Driscoll (author of this article) of Arlington 350 noted that prices for installed commercial solar declined 20 percent in 2016, creating an opportunity for the school district to save money with solar.  Noting that the school board must approve any PPA agreement before it may be signed, and could reject any agreement they find unsatisfactory, he said “we have nothing to lose, and much to gain.”

The new provisions provide an opportunity for solar contractors to submit an unsolicited proposal to APS, along with a proposal review fee of $2,500.  Any such proposal may prompt the school district to undertake a solar project, in which case the school district would solicit competing bids, in accordance with PPEA guidelines.

The provisions call for APS to hire “qualified professionals” from outside the APS staff to review all solicited proposals.  These professionals may include an architect, professional engineer, or certified public accountant.  APS will also hold a public hearing prior to entering into any PPA agreement.

To date, Arlington has installed a 497 kilowatt solar system on Discovery Elementary School and a 90 kilowatt system on Wakefield High School, both through outright purchase during the construction phase for each school.

With Rooftop Solar Prices So Low, Virginia Schools Can’t Pass Up the Savings

By Will Driscoll

With today’s low solar prices, schools can save money by installing rooftop solar, and use the savings to improve education.  Schools in three Virginia communities are leading the way, achieving net energy savings after commissioning 1.7 megawatts of solar systems in 2016. Student leadership, power purchase agreements, and one outright purchase helped make it happen.

In Albemarle County, students helped drive a decision to install 1.1 megawatts of solar on six schools.  Back in 2014, Sutherland Middle School students gave pro-solar testimony in Richmond at a hearing on Dominion Virginia Power’s resource plans.  Meanwhile, students at Monticello High School wrote to the school board to make the case for solar.  The school division last year added rooftop solar to these schools and four others, by entering a power purchase agreement (PPA) with solar developer Secure Futures in Staunton.  The school division projects savings of at least $80,000 over the life of the 20-year PPA agreement, based on a projected annual increase of two percent in Dominion Virginia Power’s electricity rates.  (Photos below.)

Arlington’s new Discovery Elementary School is jam-packed with 497 kilowatts of solar panels.  That much solar was possible under Virginia’s net metering law because the school is heated using electric-powered geothermal heat pumps—so the school can net meter not only its air conditioning and lighting load but also its electric heating load.  The school district paid $1,369,500 for the solar system, funded through the same bond used to build the school.  The cost will be paid off in 14 years, assuming a two percent annual increase in energy costs, and the solar panels should produce free electricity for many years after that.  (That 14-year amortization is based on the bond’s interest rate of 2.63 percent and full-year 2016 energy cost avoidance of $101,000, increasing by two percent per year.)  The school is designed as a net-zero-energy building, and ran at net-zero in 2016. (Photo below.)

Lexington City Schools, which operates just three schools, added a 91.5 kW solar system to the Lylburn Downing Middle School. “No matter how big or how small a school division you are—and that translates into real life, no matter how big a corporation or how small—you can make an impact on the environment” explained School Principal Jason White in a video interview with Washington and Lee University’s Rockbridge Report.  Lexington School Superintendent Scott Jefferies added that the solar project “speaks beyond how much you can actually save financially—more so … that you’re actually trying to do something good for the environment.” Like Albemarle County, Lexington financed this solar system through a PPA with Secure Futures.

Looking Ahead:  To accelerate placement of cost-saving solar systems on schools—and to show our children that we care about their future—Virginia legislators could extend the right to enter into power purchase agreements (PPAs) beyond the current pilot program in the Dominion Virginia Power territory.  The legislature could also allow customers to net meter more solar-generated electricity than they consume, because we need all the solar we can get, and because Dominion claims it has difficulty siting solar generation.  And soon, legislators will need to increase the net metering limit, now fixed at one percent of total electricity consumption.

Virginia can produce 32 percent of its electricity from rooftop solar, according to a National Renewable Energy Laboratories report.  Virginia’s 2,093 public schools, with unshaded roofs ideal for low-cost commercial scale solar, represent a promising component of that potential.  Our progress in 2016 moved us eight schools closer to that target.

Albemarle County Schools–Photos 

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Staff of Mountain View Solar (in high-visibility clothing) and Secure Futures conduct commissioning tests for Albermarle High School’s solar installation. (Photo courtesy of Secure Futures LLC.)

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Sutherland Middle School’s 279 kW system. (Photo by Grant Gotlinger; courtesy of Secure Futures.)

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Baker-Butler Elementary School’s 224 kW system. (Photo by Grant Gotlinger, courtesy of Secure Futures.)

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Brownsville Elementary School’s 130 kW system. (Photo by Grant Gotlinger, courtesy of Secure Futures.)

Arlington’s Discovery Elementary School–Photo

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496 kW of solar panels on Arlington’s Discovery Elementary School, with a neighboring school shown at top left. (Photo courtesy of VMDO Architects and Digital Design & Imaging Service, Inc.)