AMENDMENT NO. 1 TO
BAY AREA AIR QUALITY MANAGEMENT DISTRICT
GRANT NO. 2018.245
This amendment to the above-entitled grant ("Grant Amendment") is dated, for reference purposes only, October 27, 2020.
RECITALS:
1. The Bay Area Air Quality Management District ("DISTRICT" ) and City of Santa Clara dba Silicon Valley Power ("GRANTEE") (hereinafter referred to as the "PARTIES" ) entered into the above-entitled grant to demonstrate the feasibility of battery energy storage systems for back-up power at data centers (the "Agreement " ), which Agreement was executed on behalf of GRANTEE on January 18, 2019, and on behalf of DISTRICT on February 8, 2019.
2. The PARTIES mutually seek to extend the term and certain project dates of the Agreement due to unforeseen delays and hardships caused by the COVID-19 pandemic.
3. In accordance with Section 28 of the Agreement, DISTRICT and GRANTEE desire to amend the above-entitled Agreement as follows:
TERMS AND CONDITIONS OF GRANT AMENDMENT:
1. By this Grant Amendment, DISTRICT and GRANTEE amend Section 3, "Term." The term of the Agreement shall be extended so that the termination date of the Agreement is now April 30, 2022.
2. By this Grant Amendment, DISTRICT and GRANTEE amend Section 81 " Payment," of the Agreement to replace paragraph A with the following paragraph:
"A. DISTRICT agrees to award GRANTEE a grant of $300,000 for the activities described in Attachment A, Work Plan. Grant shall be payable in eight (8) installments, as follows:
a) Seven (7) payments of $37,500 each, upon DISTRICT'S receipt and approval of GRANTEE'S progress report and invoice; and
b) One (1) final payment of $37,500 upon completion of all tasks identified in Attachment A, Work Plan, payable upon DISTRICT's receipt and approval of GRANTEE's invoice and GRANTEE's final report ."
3. By this Grant Amendment, DISTRICT and GRANTEE replace Attachment A, Work Plan, with the attached "Attachment A-1, Work Plan" and agree that all references in the Agreement to Attachment A shall be deemed refer to Attachment A-1, Work Plan.
4. DISTRICT and GRANTEE agree tha~ all other terms and conditions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the PARTIES have caused this Grant Amendment to be duly executed on their behalf by their authorized representatives .
BAY AREA AIR QUALITY
MANAGEMENT DISTRICT
By:
IADocuSigned by:
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Jack 1--'. l::lroadbent
Executive Officer/ APCO
Date:. ______ _ _ _ ____ _
Approved as to form:
District Counsel
By:
r-: DocuSigned by:
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Brian C. Bunger
District Counsel
CITY OF SANT A CLARA
dba SILICON VALLEY POWER
By:
City Manager
Date:
Approved as to form:
By:
Digitally signed by Caio
C · A II Arellano a IQ re anO Date: 2021.01.26
Brian Doyle
City Attorney
15:38:25 -08'00'
Amendment No. 1 to Grant No. 2018.245
ATTACHMENT A-1
WORK PLAN
GRANTEE will design, procure, and install a 2 MW/4 MWh lithium -ion battery energy storage system (BESS) for a selected data center to reduce and potentially avoid the use of diesel generators with uninterrupted power supply. The project will demonstrate the feasibility of battery storage for data centers, delaying the use of diesel generators as backup power.
Phase 1: Site/Customer Selection and Assessment
Task 1.1: Identify and select data center partner
GRANTEE will launch a solicitation to identify data centers interested in delaying the use of, and potentially replacing a diesel generator with a lithium-ion battery energy storage system. GRANTEE will use the following selection criteria for the ideal candidate: a) located within the BAAQMD CARE boundary (as defined by the Air District: http://www .baaqmd.gov/plans -and-climate/community -air risk-evaluation -care-program ) and SVP's service territory, b) has renewable energy and climate goals aligned with GRANTEE's climate goals, and c) is collaborative, willing and interested in potentially scaling up the project in future years.
Deliverables:
1. Criteria for site selection and decision
2. Confirmation from the data center as a partner (e.g., signed agreement, MOU, etc) Task 1.2: Assess construction project process and preliminary site plan GRANTEE will assess the construction project process and preliminary site plan for the placement of the battery energy storage system (including permitting and interconnection requirements and service data scheduling). GRANTEE will also ensure proper procedures aligned with city permitting, CEQA (if applicable), and other project clearance steps.
Deliverables:
1. Preliminary site plan (assess site challenges, projected load and ramp schedule, costs, schedule service date, etc.)
2. Checklist of construction project process and necessary permits, codes, standards, engineering designs, approvals, reviews (with dates of execution)
3. Interconnection requirements issued by utility and interconnection agreement Phase 2: Collaboration and Deployment
Task 2.1: Collaborate with selected sub-contractor to size, design, purchase and install battery storage system
GRANTEE will work with the data center to size, engineer, procure and construct the battery energy storage system. The sub-contractor that will install the battery storage system will be confirmed once the data center selection is finalized and will be responsible for installing the battery, inverter , battery management system, enclosures/racks, controller, and balance of plant for integration of battery energy storage system into the facility. The selected data center will select the sub-contractor. The sub contractor and battery storage technology provider will also carry out battery testing , verification
Amendment No. 1 to Grant No. 2018.245
inspections, and training related to operation, maintenance, and emergency response procedures for the battery storage system.
Deliverables:
1. Conceptual system design
2. Sub-contractor contract
3. Certificates that ensure engineering requirements, operational testing, inspection, safety codes have been met
4. Equipment specifications
5. Installation documentation and images
Task 2.2: Deploy and test battery storage system and aggregation controller GRANTEE will deploy and test the battery storage system and aggregation controller. The controller optimally dispatches the battery system network to maximize the lifetime of each battery system and optimizes the battery to maximize GHG reductions. The system will communicate events in real-time across the data center, the utility transmission and operations systems and GRANTEE's real-time energy trading desk.
Deliverables:
1. Battery system performance report (e.g., information on charge, health, voltage, capacity, etc.)
2. Design plan to determine user interface and software platform to manage data Phase 3: Monitor Outcome and Results
Task 3.1: Monitor project outcome and results by metrics GRANTEE will monitor progress and track results in terms of: Anticipated performance of the battery system, based on performance models and specifications of the system (e.g., battery cycles per year, avoided emissions from daily charge and discharge of system due to intra daily differences in the wholesale market carbon intensity, etc.) Installation's estimated (monthly, annual, and battery life (~15 years)) energy-use and GHG-emissions reductions
Deliverables:
1. Detailed results included in the project final report (see below) Progress Reports
Beginning thirty (30} calendar days after execution of the contract, GRANTEE shall provide progress reports describing GRANTEE's progress toward completion of the work outlined above, no later than 15 days following each milestone completion date. Progress reports shall be prepared on the District's Progress Report form (provided separately).
Final Report
Within thirty (30} calendar days of completion of project, GRANTEE shall submit a Final Report. The Final Report, to be prepared on the District's Final Report form (provided separately), should report on the outcomes of the project and lea med lessons.
Amendment No. 1 to Grant No. 2018.245
Grant Payments
Grant payments will be made in installments in accordance to Section 8, Payment. Total payments under this Agreement shall not exceed $300,000.
Reporting and Grant Payment Schedule for Grant Funds
Payments of grant funds shall be contingent upon DISTRICT's approval of GRANTEE's progress reports and final report. DISTRICT approval will take into consideration adequate progress in implementing program tasks to meet the milestones set forth below. DISTRICT shall pay GRANTEE its grant payments upon receipt and approval of GRANTEE's progress reports and final report demonstrating that the applicable project milestones have been met as provided in Section 8 of this Agreement. 1 Task 1.1- initiated and 10/31/19 Progress report (PR) #1 $37,500 completed (11/15/19)
2 Task 1.2 - initiated 1/31/20 PR #2 (2/15/20) $37,500
3 Task 1.2 - completed 3/31/21 PR #3 (4/15/21) $37,500
Task 2.1- initiated
4 Task 2.1- on-going 6/30/21 PR #4 (7/15/21) $37,500
5 Task 2.1- on-going 9/30/21 PR #5 (10/15/21) $37,500
6 Task 2.1- completed 12/31/21 PR #6 (1/15/22) $37,500
Task 2.2 - initiated
Task 3.1- initiated
7 Task 2.2 - completed 2/28/22 PR #7 (3/15/22) $37,500
Task 3.1- on-going
8 (Final) Task 3.1- completed 3/31/22 Final Report (4/15/22) $37,500
Amendment No. 1 to Grant No. 2018.245