HomeMy WebLinkAbout5.1109 Original ContractAGREEMENT FOR ENERGY PROJECT MANAGER FUNDING
BY NIPPON PAPER INDUSTRIES, USA Co., LTD AND THE CITY OF PORT
ANGELES
This is an agreement by, and between, Nippon Paper Industries, USA Co LTD and the City of
Port Angeles.
RECITALS
WHEREAS, Nippon Paper Industries, USA Co., LTD (NPI) has facilities in the City of Port
Angeles (City)'s service area and purchases power from the City; and
WHEREAS, the City is a municipal utility organized under the laws of the State of Washington,
and sells electric power to NPI that is acquired from Bonneville Power Administration (BPA); and
WHEREAS, BPA will provide funds to the City to pass through to NPI if NPI hires or designates
an Energy Project Manager (EPM) qualified to identify, evaluate, and implement industrial electrical
energy efficiency projects (BPA EPM funding program) at NPI's Port Angeles facility; and
WHEREAS, the PARTIES agree to participate in the BPA EPM funding program.
AGREEMENT
NOW, THEREFORE, the PARTIES hereby agree to the following terms and conditions.
1 The term of this Agreement expires September 30, 2011. The Commencement Date is
the date the final of the following three actions occur: (1) BPA approves the EPM funding
for NPI, (2) this Agreement is executed and (3) an EPM is hired or designated by NPI.
2 NPI must hire or designate an EPM to identify, evaluate, and implement industrial
electrical energy efficiency projects. The EPM must be familiar with, and have experience
in electric energy efficiency in the industrial sector and must have knowledge and
experience working in NPI's type of business, which includes pulp and paper
manufacturing
3. The EPM must manage electrical energy efficiency projects that deliver 1,000,000 kWh
or greater in verified annual busbar energy savings prior to the expiration of this
Agreement. These savings must be verified energy savings, i.e., the savings must be
reportable by the City in the Planning, Tracking, and Reporting (PTR) system and
approved by BPA.
4. No later than February 28, 2011 the EPM shall submit an EPM comprehensive plan to
the City and BPA. The EPM comprehensive plan must be approved by The City and BPA
and include the following:
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a. Name of the EPM
b. EPM employment background and qualifications.
c. Total annual salary of the EPM, including benefits.
d Itemized summary of planned electrical energy efficiency projects that will
comprise the verified energy savings, including estimates of the energy savings,
cost savings, and project implementation costs.
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e. Schedule for project development, implementation, and completion showing
energy savings expected at April 30, 2011 and energy savings or energy savings
progress expected during the term of this agreement.
5 No later than April 30,2011 NPI must achieve, to the City's and BPA's satisfaction, the
April 30,2011 energy savings or energy savings progress described in project
implementation schedule of the EPM Comprehensive Plan Energy savings may be
verified energy savings or in the form of BPA approved custom project proposals or
deemed lighting projects.
6. NPI shall provide verification of all energy savings in the EPM Comprehensive Plan no
later than August 31, 2011
7. The City must give NPI all reimbursements received from BPA for the BPA EPM funding
program as it pertains to NPI. Funding levels and amounts are set according to BPA's
Energy Efficiency Implementation Manual and are described in the chart below The City
shall pay NPI no later than 30 days after receipt of funds from BPA The City is not
obligated to pay NPI if it does not receive reimbursement from BPA by September 30,
2011. Following is the payment schedule.
Table 1. EPM Funding Amounts and Milestones
Payment No. Funding Amount Milestone
1 $25,000 Commencement Date
2 1/3 of the funding* less previous payments BPA and City approves the EPM
Comprehensive Plan
3
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2/3 of the funding* less previous payments
NPI achieves, to BPA's satisfaction, the
six -month energy savings or energy
savings progress described in the project
implementation schedule of the EPM
Comprehensive Plan
The lesser of (a) $0.025 per kWh of actual
verified energy savings, (b) the total annual August 31, 2011.
4 salary of the EPM as described in the EPM
Comprehensive Plan, or (c) $250,000, less
previous payments.
*Funding is based on the lesser of (a) $0.025 per kWh of the Verified Energy Savings goal, (b) the total annual salary
of the EPM as described in the EPM Comprehensive Plan, or (c) $250,000.
8. The City and NPI agree to cooperate in the submittal of information and
documentation to BPA to facilitate the EPM funding program.
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BPA ENERGY EFFICIENCY
CITY OF PORT ANGELES
By J VC �I a 4
Glenn S Curer, per cTor Public Works and Utilities
Dated
hi
Nippon Paper Industries USA, Co., LTD
By [4(/� -��T' V
Harold Norlund, Resident ent Mill Manager
Date I L4
I
Final version, 3 -23 -10
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BPA ENERGY EFFICIENCY