Date
Inquiry

The Baca School plans to contract for purchase from NativeEnergy the rights to all of the Green Tags to be generated by a specific share of the nameplate generating capacity of a specific wind turbine over the first 25 years of its commercial operations. NativeEnergy estimates that this capacity share will generate 680,000 kWhs of Green Tags over the 25-year delivery term. The Baca School\'s annual electricity use is estimated at 680,000 kWhs, so the contract "represents purchase of at least 2 years worth of renewable electricity for 50% of the building\'s energy load." (See CIR Ruling EAc60 5/5/2003). NativeEnergy will document the following: 1. NativeEnergy\'s estimates of the Green Tag output for this capacity share have been approved by the Climate Neutral Network for inclusion of the 25-year CO2 offsets in a current-year CN Network-certified portfolio, with no liability to make up for any production shortfall. NativeEnergy applies several discounts to the turbine\'s engineering estimates, so the [Project] may realize more Green Tags than NativeEnergy estimates. 2. The Baca School\'s purchase is unit-contingent after the turbine\'s initial commercial operations. Prior thereto, NativeEnergy commits to provide equivalent Green Tags from a substitute Green-e eligible turbine if the turbine fails. NativeEnergy has secured the generator\'s commitment to use commercially reasonable efforts to continue operating the turbine for the 25-year delivery term. 3. NativeEnergy has taken all appropriate steps contractually to preclude double-selling by the generator, including securing commitments by the energy purchaser not to make conflicting claims regarding the attributes of the purchased energy. NativeEnergy has filed UCC Financing Statements providing legal notice of its first-priority rights to the Green Tags. NativeEnergy has secured audit rights and will engage an independent auditor if necessary. 4. The Green Tags meet the Green-e renewable power definition and all requirements of the Green-e National Tradable Renewable Certificate Standards except: (i) NativeEnergy does not use the product content label, but provides all relevant information in its own forms; and (ii) the Green Tags are delivered over 25 years, longer than the "vintage" period under the Green-e Standards This departure gives the Baca School\'s purchase more direct and immediate environmental impact than most purchases of Green-e vintage Green Tags. NativeEnergy enables its purchasers actually to help finance construction of specific new generators. NativeEnergy commits to generators that truly need their long-term green premium secured to justify financing and proceed to construction. Where 2-year Green Tags commitments would leave such generators with financial uncertainty in years 3 and out, NativeEnergy\'s customers collectively bring the generator its lifetime green premium in a lump sum when it reaches commercial operations, by subscribing its entire lifetime Green Tag output up front. Thus NativeEnergy\'s customers not only have all the "demand demonstrating" impact of purchases of Green-e vintage Green Tags, but with each purchase, they actually help finance new construction and so create new environmental benefits. Given the enhanced and direct impact of NativeEnergy\'s business model in encouraging the development of specific new renewable energy sources, we request that the Project Manager consider the Baca School\'s purchase as at least the equivalent of the purchase of 2 years worth of renewable electricity for 50% of the Baca School\'s energy load.

Ruling

Although commendable, the strategy as outlined does not meet the requirements of this credit due to the 25-year delivery period. However, you may consider EA Credit 2 as an alternative option if the wind turbine can be located on-site or hardwired from a nearby site. In this case you will need to demonstrate adequate monitoring, generating capacity, and that the electricity is not available to the public via sales to the power grid or tradable renewable energy certificates (TRCs, or "green tags").

Internationally Applicable
Off
Campus Applicable
Off