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From page 25... ... 25 This chapter provides an overview of key elements that must be considered when beginning to develop a renewable resources strategy. These elements, which include administrative, fiscal, and technical considerations, represent the pillars upon which a successful strategy can be built -- akin to the legs of a stool (Figure 6) Read the entire page →
From page 26... ... 26 Guidebook for Developing a Comprehensive Renewable Resources Strategy Airport Master Plan An airport master plan, which may include the ALP process, is a comprehensive study of an airport. It describes existing conditions, forecasts future aviation activity, and presents short-, medium-, and long-term development plans to meet the forecasted demand. Read the entire page →
From page 27... ... Pillars of a Successful Renewable Resources Strategy 27 associated with energy and waste that most directly correlate with renewable resources. However, in general, reducing consumption was prioritized over increasing the use of renewables. Read the entire page →
From page 28... ... 28 Guidebook for Developing a Comprehensive Renewable Resources Strategy forecasted airport demand and the infrastructure improvements necessary to accommodate future activity. In developing the airport master plan, airports evaluate critical aeronautical infrastructure as well as supporting systems, including energy infrastructure. Read the entire page →
From page 29... ... Pillars of a Successful Renewable Resources Strategy 29 The following are examples of renewable resources that have been planned in conjunction with new facilities in order to enhance operations and improve efficiency: • Solar PV projects are ideal for placement on canopies installed in parking areas. Such projects provide a platform for generating electricity with the added benefit of covered parking. Read the entire page →
From page 30... ... 30 Guidebook for Developing a Comprehensive Renewable Resources Strategy and infrastructure development. For example, if an airport designates a portion of its land for growing biofuels to partially replace aviation fuel, that land must remain undeveloped during the project planning. Read the entire page →
From page 31... ... Pillars of a Successful Renewable Resources Strategy 31 Denver International Airport's SMP was published in August 2013 and covers a long list of categories in its sustainability baseline, including air pollution, water quality, energy, and GHG emissions (Ricondo and Associates, Inc., 2013) Read the entire page →
From page 32... ... 32 Guidebook for Developing a Comprehensive Renewable Resources Strategy To facilitate project planning and development, airports secure airport planning and engineering services to help with preparing and documenting funding requests for submittal to FAA, developing planning documents, and managing construction by other entities. These contracts are prepared in accordance with FAA's AC 150/5100-14E -- Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects. Read the entire page →
From page 33... ... Pillars of a Successful Renewable Resources Strategy 33 Ownership and Operational Arrangements There are three primary ownership scenarios for airport renewable energy projects. Such projects may be airport-owned; third-party owned with airport as host; or third-party owned with airport as power purchaser (Barrett et al., 2015) Read the entire page →
From page 34... ... 34 Guidebook for Developing a Comprehensive Renewable Resources Strategy primarily because they can monetize the federal investment tax credit -- which funds as much as 30 percent of the project installation cost -- and state renewable energy markets that direct utilities to purchase green power at a premium price. In cases where a third party is the owner and the airport is the host, the third party simply pays the airport an annual land lease payment for the right to operate the facility, and it sells the power generated by the facility to an off-site customer. Read the entire page →
From page 35... ... Pillars of a Successful Renewable Resources Strategy 35 • Does either revenue neutral or financially net beneficial to the airport sponsor on an annual basis mean that the airport must receive at least as much financial benefit annually as the fair market value of the electricity sold. While third-party projects with PPAs are unlikely to require or demonstrate a need for FAA funding to the airport sponsor, it is possible that FAA may seek to impose these requirements through its broader authority under grant assurances when approving ground leases. Read the entire page →
From page 36... ... 36 Guidebook for Developing a Comprehensive Renewable Resources Strategy from renewable energy. Irrespective of the compensation agreement with the utility, the airport will gain ancillary benefits, such as public good will, by generating "green" power. Read the entire page →
From page 37... ... Pillars of a Successful Renewable Resources Strategy 37 and demonstrate to FAA that it is receiving fair market value compensation through the lease. Renewable energy developers will seek to keep their costs down to ensure that the electricity produced can achieve a market rate. Read the entire page →
From page 38... ... 38 Guidebook for Developing a Comprehensive Renewable Resources Strategy future prices are unknown, the year 1 price is often set at or below existing prices and any time in the future when market prices exceed the PPA price, the electricity buyer will enjoy the differential as a cost savings. In many cases, PPAs are able to offer a rate that is consistently below the price of existing "utility" power and locked in at a known rate. Read the entire page →
From page 39... ... Pillars of a Successful Renewable Resources Strategy 39 installed project costs by well over 40 percent for a private owner. The ability of private owners to access tax incentives is one reason for the frequency of private ownership of renewable energy projects on public lands and buildings. Read the entire page →
From page 40... ... 40 Guidebook for Developing a Comprehensive Renewable Resources Strategy Tax-Exempt Bonds Airport operators in the United States are overwhelmingly state or local governmental entities with the power to issue debt on a tax-exempt basis, thus reducing their financing costs. Therefore, the airport can often finance renewable energy projects that will benefit only the airport itself, such as a solar facility where the power generated will be used entirely by the airport, with the proceeds of tax-exempt bonds. Read the entire page →
From page 41... ... Pillars of a Successful Renewable Resources Strategy 41 incentives. Sponsors can find details on the specific rebates and incentives that are available in their area by visiting U.S. Read the entire page →
From page 42... ... 42 Guidebook for Developing a Comprehensive Renewable Resources Strategy which do not generate the revenue of larger airports need to supplement bond financing with federal aid to various degrees. • In conducting the pro forma cash flow analysis, focus should be on the 3- to 5-year period that coincides with the CIP. Read the entire page →
From page 43... ... Pillars of a Successful Renewable Resources Strategy 43 periods can be longer than for other energy cost-saving benefits associated with improved energy efficiency. Renewable energy can also be part of a plan to modernize the grid, provide redundancy and resiliency, and establish greater power reliability during unforeseen events. Read the entire page →
From page 44... ... 44 Guidebook for Developing a Comprehensive Renewable Resources Strategy Biomass Biomass can provide building heating in areas where there is an adequate supply of costeffective feedstocks. However, biomass units are only ideal in climates with a significant heating load. Read the entire page →
From page 45... ... Pillars of a Successful Renewable Resources Strategy 45 • Stakeholders should be involved early in the process and assured that wind turbines have been constructed safely at other airports. Energy Storage The broad application of energy storage technologies for airport applications remains relatively new, though notable examples have been deployed, such as the microgrid at Burlington International Airport. Read the entire page →
From page 46... ... 46 Guidebook for Developing a Comprehensive Renewable Resources Strategy Considerations for Non-Energy Renewable Resource Projects Non-energy renewable resource projects require many of the same administrative, fiscal, and technical considerations as renewable energy projects. The particular similarities and differences are discussed below. Read the entire page →

From page 25...

... 25 This chapter provides an overview of key elements that must be considered when beginning to develop a renewable resources strategy. These elements, which include administrative, fiscal, and technical considerations, represent the pillars upon which a successful strategy can be built -- akin to the legs of a stool (Figure 6)