Explanation
BACKGROUND: This ordinance authorizes an Interconnection Agreement with Central Ohio Bioenergy, LLC, owned by Quasar Energy Group, a Cleveland, Ohio based waste-to-energy company. Central Ohio Bioenergy, LLC is building a waste to energy facility located at the Waste Transfer Facility as part of SWACO's environmental projects under its lease with the city. The Interconnection Agreement is necessary to allow Central Ohio Bioenergy to sell the energy on the wholesale market and for purposes of the facility's certification as an Ohio Renewable Energy Resource Generating Facility, and allows the Generator to rely upon Columbus' interconnection agreement with American Electric Power Service Corporation. Under the terms of the agreement the Project will be considered "behind the meter" and any capacity value attributable to the Project, including but not limited to participation in the PJM Reliability Pricing Model and any successor will inure solely and exclusively to the benefit of the City of Columbus, the Divison of Power and Water.
FISCAL IMPACT: There is no budgetary impact as a result of this ordinance.
Emergency Action is necessary in order for the Central Ohio Bioenergy Project to to meet its contractual obligation.
Title
To authorize the Director of Public Utilities to enter into an Interconnection Agreement with Central Ohio Bioenergy, LLC, a waste-to-energy company, and to declare an emergency.
Body
WHEREAS, Central Ohio Bioenergy, LLC, is owned by Quasar Energy Group, a Cleveland, Ohio based waste-to-energy company engaged in the generation and sale of energy from a high-solids, continuous mix, anaerobic digestion system that beneficially uses organic waste to generate electricity from sustainable renewable biogas, related energy attributes, soil amendments and liquid fertilizer; and,
WHEREAS, Central Ohio Bioenergy, LLC desires to: (a) install a biomass waste-to-energy system, known as Central Ohio Bioenergy ("Project"), with a nameplate capacity of 1.5 MW in Columbus, located at 2500 Jackson Pike, Columbus, OH 43223, as well as related generation equipment, controls, and protective relays and equipment (collectively referred to as "Generation Facilities") and (b) interconnect the Generation Facilities to the Department's electric distribution system and operate in parallel with Division's electric distribution system; and,
WHEREAS, the Parties desire to memorialize their further understandings with respect to Central Ohio Bioenergy, LLC development of a biomass waste-to-energy Generation Facility in Columbus; and,
WHEREAS, the Interconnection Agreement allows Central Ohio Bioenergy, LLC to interconnect and operate the Generation Facility in parallel with the Division's electric distribution system under the conditions set forth in this Agreement; and,
WHEREAS the Central Ohio Bioenergy Project's contractual obligation require the interconnection agreement to be completed by September 23, 2010 to begin generation and energy transmission; and,
WHEREAS, an emergency exists in the usual daily operation of the Division of Power and Water, in that it is immediately necessary to implement the Interconnection Agreement, in order for the Central Ohio Bioenergy Project to meet its contractual obligations and for the immediate preservation of the public health, peace, property and safety; now therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities be and is hereby authorized to enter into an Interconnect Agreement. This Agreement applies only to the operation of the Generation Facilities.
SECTION 2. That for the reason stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after its passage if the Mayor nether approves nor vetoes the same.