National Academies Press: OpenBook

Renewable Energy as an Airport Revenue Source (2015)

Chapter: Front Matter

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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2015. Renewable Energy as an Airport Revenue Source. Washington, DC: The National Academies Press. doi: 10.17226/22139.
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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2015. Renewable Energy as an Airport Revenue Source. Washington, DC: The National Academies Press. doi: 10.17226/22139.
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Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

A I R P O R T C O O P E R A T I V E R E S E A R C H P R O G R A M ACRP REPORT 141 TRANSPORTAT ION RESEARCH BOARD WASHINGTON, D.C. 2015 www.TRB.org Research sponsored by the Federal Aviation Administration Subscriber Categories Aviation • Energy • Finance Renewable Energy as an Airport Revenue Source Stephen B. Barrett Philip M. DeVita HMMH Burlington, MA i n a s s o c i a t i o n w i t h Adam Whiteman Frasca & associates, LLc New York, NY David Bannard Foley & lardner llP Boston, MA Terri Smalinsky Ziegler investMent Banking Chicago, IL Iris Korovesi sunPower corPoration Richmond, CA Jake Plante Plante environMental llc Brunswick, ME Travis DeVault u.s. dePartMent oF agriculture Sandusky, OH

AIRPORT COOPERATIVE RESEARCH PROGRAM Airports are vital national resources. They serve a key role in trans­ portation of people and goods and in regional, national, and inter­ national commerce. They are where the nation’s aviation system connects with other modes of transportation and where federal respon­ sibility for managing and regulating air traffic operations intersects with the role of state and local governments that own and operate most airports. Research is necessary to solve common operating problems, to adapt appropriate new technologies from other industries, and to introduce innovations into the airport industry. The Airport Coopera­ tive Research Program (ACRP) serves as one of the principal means by which the airport industry can develop innovative near­term solutions to meet demands placed on it. The need for ACRP was identified in TRB Special Report 272: Airport Research Needs: Cooperative Solutions in 2003, based on a study spon­ sored by the Federal Aviation Administration (FAA). The ACRP carries out applied research on problems that are shared by airport operating agencies and are not being adequately addressed by existing federal research programs. It is modeled after the successful National Coopera­ tive Highway Research Program and Transit Cooperative Research Pro­ gram. The ACRP undertakes research and other technical activities in a variety of airport subject areas, including design, construction, mainte­ nance, operations, safety, security, policy, planning, human resources, and administration. The ACRP provides a forum where airport opera­ tors can cooperatively address common operational problems. The ACRP was authorized in December 2003 as part of the Vision 100­Century of Aviation Reauthorization Act. The primary participants in the ACRP are (1) an independent governing board, the ACRP Oversight Committee (AOC), appointed by the Secretary of the U.S. Department of Transportation with representation from airport operating agencies, other stakeholders, and relevant industry organizations such as the Airports Council International­North America (ACI­NA), the American Associa­ tion of Airport Executives (AAAE), the National Association of State Aviation Officials (NASAO), Airlines for America (A4A), and the Airport Consultants Council (ACC) as vital links to the airport community; (2) the TRB as program manager and secretariat for the governing board; and (3) the FAA as program sponsor. In October 2005, the FAA executed a contract with the National Academies formally initiating the program. The ACRP benefits from the cooperation and participation of airport professionals, air carriers, shippers, state and local government officials, equipment and service suppliers, other airport users, and research orga­ nizations. Each of these participants has different interests and respon­ sibilities, and each is an integral part of this cooperative research effort. Research problem statements for the ACRP are solicited periodically but may be submitted to the TRB by anyone at any time. It is the responsibility of the AOC to formulate the research program by iden­ tifying the highest priority projects and defining funding levels and expected products. Once selected, each ACRP project is assigned to an expert panel, appointed by the TRB. Panels include experienced practitioners and research specialists; heavy emphasis is placed on including airport pro­ fessionals, the intended users of the research products. The panels pre­ pare project statements (requests for proposals), select contractors, and provide technical guidance and counsel throughout the life of the project. The process for developing research problem statements and selecting research agencies has been used by TRB in managing cooper­ ative research programs since 1962. As in other TRB activities, ACRP project panels serve voluntarily without compensation. Primary emphasis is placed on disseminating ACRP results to the intended end­users of the research: airport operating agencies, service providers, and suppliers. The ACRP produces a series of research reports for use by airport operators, local agencies, the FAA, and other interested parties, and industry associations may arrange for work­ shops, training aids, field visits, and other activities to ensure that results are implemented by airport­industry practitioners. ACRP REPORT 141 Project 01­24 ISSN 1935­9802 ISBN 978­0­309­30884­7 Library of Congress Control Number 2015944518 © 2015 National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not­for­profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB or FAA endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not­for­profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The project that is the subject of this report was a part of the Airport Cooperative Research Program, conducted by the Transportation Research Board with the approval of the Governing Board of the National Research Council. The members of the technical panel selected to monitor this project and to review this report were chosen for their special competencies and with regard for appropriate balance. The report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the Governing Board of the National Research Council. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board, the National Research Council, or the program sponsors. The Transportation Research Board of the National Academies, the National Research Council, and the sponsors of the Airport Cooperative Research Program do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the object of the report. Cover photo is of a solar PV project at Seneca County Airport in Tiflin, Ohio. Photo by David Bergman, U.S. Department of Agriculture, Wildlife Services Program. Published reports of the AIRPORT COOPERATIVE RESEARCH PROGRAM are available from: Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet at http://www.national­academies.org/trb/bookstore Printed in the United States of America

The National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, nongovernmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Ralph J. Cicerone is president. The National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. C. D. Mote, Jr., is president. The National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. The three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. The Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.national-academies.org.

C O O P E R A T I V E R E S E A R C H P R O G R A M S AUTHOR ACKNOWLEDGMENTS The research reported herein was performed under ACRP Project 01­24 by HMMH. Stephen B. Barrett, Director of Climate and Energy at HMMH, was Principal Investigator. The other authors of this report are Philip M. DeVita, Director of Air Quality, HMMH; Adam Whiteman, Managing Director, Frasca and Associates; David Bannard, Partner, Foley and Lardner LLP; Terri Smalinsky, Managing Director, Ziegler Investment Banking; Iris Korovesi, SunPower Corporation; Jake Plante, President, Plante Environmental LLC; and Travis DeVault, Field Station and Project Leader, USDA National Wildlife Center. Graphics prepared by Wanda Maldonado of HMMH. Maps prepared by Michael Hamilton of HMMH. The authors would also like to thank the following individuals for contributing to the research. Ameresco: Jim Walker; Cape & Vineyard Electric Cooperative: Liz Argo; Charlotte Airport: Patrick Cerri; Crawford, Murphy & Tilly: Brian Welker; Denver International Airport: Ed Keegan, Scott Morrissey; Duke Energy Renewables: Michael Butler, Iris Sandridge; Federal Aviation Administration: Patrick Magnotta; Grant County Regional Airport: Patrick Bentz; Halcyon Solar: Dan Herman, Josh Ebejer; Honeywell Cor­ poration: Mike Janos, Max Lopp; Indianapolis Airport Authority: Tim Method; Johnson Melloh Solutions: Kurt Schneider; Lakeland Electric Company: Jeff Curry; Lakeland Linder Field: Brett Fay; Manchester Air­ port Group, UK: Adam Freeman; Massachusetts Port Authority: Terry Civic; Monterey Regional Airport: Mark Bautista, Chris Morello; Nantucket Memorial Airport: Noah Karberg; Outagamie County Airport: Scott Volberding; Portland Jetport: Paul Bradbury, Roy Williams, Anthony Newton; Redding Municipal Airport: Rod Dinger; Rural Renewable Energy Alliance: Roger Garton; San Diego County Regional Air­ port Authority: Ajay Babla; Shelby, North Carolina: Ben Yarboro, Jack Poole; The Minnesota Project: Fritz Ebinger; Tucson Airport Authority: Fred Brinker; University Park Airport: James Meyer; Volpe Center, U.S. Department of Transportation: Alexander Epstein; and HMMH: Kristine Collins, Crystale Wozniak. CRP STAFF FOR ACRP REPORT 141 christopher W. Jenks, Director, Cooperative Research Programs Michael R. Salamone, ACRP Manager Joseph D. Navarrete, Senior Program Officer Terri Baker, Senior Program Assistant Eileen P. Delaney, Director of Publications Margaret B. Hagood, Editor ACRP PROJECT 01-24 PANEL Field of Administration Meenakshi Singh, Norman Y. Mineta San Jose International Airport, San Jose, CA (Chair) Daniel P. Bartholomew, Reno-Tahoe Airport Authority, Reno, NV Rhona Dicamillo, DKMG Consulting, LLC, Wilmette, IL Jennifer M. Fuller, North Carolina DOT, Raleigh, NC Robert A. Nicholas, Ithaca Tompkins Regional Airport, Ithaca, NY William Shoard, Energy Efficiency Group, New York, NY David Duchow, FAA Liaison Aneil Patel, Airports Council International - North America Liaison christine Gerencher, TRB Liaison

ACRP Report 141: Renewable Energy as an Airport Revenue Source provides an overview of renewable energy in an airport setting; offers guidance for identifying, evaluating, and selecting financially beneficial renewable energy projects given an airport’s unique char­ acteristics; and gives the steps needed for implementing and operating a renewable energy project. The guidebook also includes detailed financial information on the cost and perfor­ mance of projects that have been implemented by airports. The guidebook will be a particu­ larly valuable resource for airport practitioners seeking to explore the potential benefits of this non­traditional revenue source. Airports have the goal of maintaining fee and rental structures that will make them as financially self­sustaining as possible. To accomplish this, airports are now exploring non­ traditional revenue sources and cost­saving measures. At the same time, utility service pro­ viders have recently begun looking for opportunities to purchase energy generated from renewable sources to meet state, regional, and federal environmental and energy goals. Since airports often have available property and facilities to host and generate clean and renewable energy sources, there may be opportunities for them to generate revenue and achieve cost savings. Nevertheless, the use of renewable energy as a revenue source is a complex issue, requiring an understanding of emerging technologies, financing mechanisms, regulatory frameworks, and operational factors. There is limited guidance to help airports identify, evaluate, select, and successfully implement renewable energy projects for financial benefit. Research was needed to develop a guidebook and present evaluation tools to help airports understand the feasibility, opportunities, and challenges of renewable energy projects and their implementation for revenue generation. The research, led by HMMH, began with a literature review that included cataloging U.S. renewable policy incentives and funding programs for airport projects as well as sum­ marizing applicable safety and environmental regulatory requirements. The review also led to the selection of a set of 21 representative projects that illustrate how airports have utilized renewable energy. These projects represented a range of project types (e.g., solar, wind, biomass, geothermal), airport sizes (e.g., large air carrier, regional, general aviation), and locations (New England, Midwest, Northwest, Southwest, Southeast). Based on the research, the team prepared its guidance. The guidebook addresses the key challenges airports will likely anticipate when considering renewable energy as a revenue source. These considerations include the airport’s geography and terrain, infrastructure, real estate, energy costs, public policy, regulatory and compliance requirements, tax credits, sponsor assurances, ownership, impacts to navigation and safety, security, staffing issues, and many others. The guidebook then offers a step­by­step approach F O R E W O R D By Joseph D. Navarrete Staff Officer Transportation Research Board

to implementing a renewable energy project that addresses stakeholder coordination, partner­ ing, procurement, contracting, environmental review, permitting, and management. Sum­ maries of the 21 renewable energy projects examined as part of the research are also included. The guidebook also includes appendices offering supplemental information, including a list of airport solar projects, a review of the potential opportunities associated with biofuel feedstock, a renewable energy funding matrix, an example of a state’s renewable energy programs, and an example solar feasibility assessment. The reader may access sample requests for proposals by visiting the project’s publication page at www.trb.org/Main/Blurbs/172634.aspx.

1 Summary 4 Chapter 1 Introduction to Renewable Energy in the Airport Environment 4 1.1 Problem Statement 7 1.2 Renewable Energy Options for Airports 25 1.3 Project Participants and Interested Parties 28 1.4 Essential Baseline Information 31 Chapter 2 Applying Evaluation Factors to Airport Renewable Energy 31 2.1 Project Setting 36 2.2 Airport Property Characteristics 39 2.3 Energy Costs 42 2.4 Public Policy Programs 48 2.5 Ownership and Operational Arrangements 53 2.6 Regulatory and Compliance Requirements 65 2.7 Operational and Safety Considerations 66 2.8 Evaluation Factors Matrix 69 2.9 Decision­Making Process 83 Chapter 3 Conducting Financial Assessments of Airport Renewable Energy 83 3.1 Types of Financial Benefit 85 3.2 Capital and Maintenance Costs 89 3.3 Levelized Cost of Energy 90 3.4 Funding Sources 93 3.5 Financial Metrics 95 3.6 Modeling Tools for Renewable Energy 100 Chapter 4 Implementing Airport Renewable Energy Projects 100 4.1 Stakeholder Coordination 102 4.2 Partner Selection 105 4.3 Contracting Process 106 4.4 Regulatory Coordination and Processes 110 4.5 Project Management 111 4.6 Successful Implementation 112 Chapter 5 Case Summaries 112 5.1 Barnstable (HYA)—Solar PV 116 5.2 Boston (BOS)—Solar PV 118 5.3 Boston (BOS)—Wind C O N T E N T S

120 5.4 Brainerd Lakes (BRD)—Solar Thermal 122 5.5 Burlington (BTV)—Wind 123 5.6 Chicago­Rockford (RFD)—Solar PV 125 5.7 Denver (DEN)—Solar PV 127 5.8 East Midlands (EMA)—Wind 129 5.9 Grant County (JDA)—Biomass 130 5.10 Indianapolis International Airport (IND)—Solar PV 132 5.11 Juneau (JNU)—Geothermal Heat Pump 133 5.12 Lakeland Linder Field (LAL)—Solar PV 135 5.13 Nantucket (ACK)—Geothermal Heat Pump 137 5.14 Outagamie County Airport (ATW) 138 5.15 Portland (PWM)—Geothermal Heat Pump 140 5.16 Redding (RDD)—Solar PV 142 5.17 San Diego (SAN)—Solar PV 143 5.18 San Diego (SAN)—Solar PV 145 5.19 Toronto­Pearson International Airport (YYZ)—Solar Thermal 147 5.20 Tucson (TUS)—Solar PV 149 5.21 University Park (UNV)—Geothermal Heat Pump 151 Acronyms 153 Glossary of Aviation, Energy, and Related Financial Terms 162 References A-1 Appendix A List of Airport Solar Projects in the United States B-1 Appendix B Biofuel Feedstock Propagation Future Opportunity C-1 Appendix C Renewable Energy Funding Matrix D-1 Appendix D State Renewable Energy Programs—Example of North Carolina E-1 Appendix E Solar Feasibility Assessment—Monterey Regional Airport F-1 Appendix F Sample RFPs

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TRB’s Airport Cooperative Research Program (ACRP) Report 141: Renewable Energy as an Airport Revenue Source explores challenges airports may anticipate when considering renewable energy as a revenue source. These considerations include the airport’s geography and terrain, infrastructure, real estate, energy costs, public policy, regulatory and compliance requirements, tax credits, sponsor assurances, ownership, impacts to navigation and safety, security, staffing issues, and many others. The guidebook also includes detailed financial information on the cost and performance of projects that have been implemented by airports.

The guidebook also includes an appendix available online that provides sample a request for proposals.

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