REPORT TO THE CITY COUNCIL
April 8, 2021
FROM: MICHAEL CARBAJAL, Director
Department of Public Utilities
SUBJECT
Title
Approve the First Amendment to the Grant of Option Agreement between City of Fresno and Fresno Community Solar Developers, LLC., to lease up to 158 acres of land at the Fresno Clovis Regional Wastewater Reclamation Facility to generate solar energy under the California Public Utilities Commission Disadvantaged Communities-Green Tariff Program (Council District 3)
Body
RECOMMENDATION
Staff recommends that the City Council approve the First Amendment to the Grant of Option Agreement between City of Fresno and Fresno Community Solar Developers, LLC. (FCSD), to lease up to 158 acres of land at the Fresno Clovis Regional Wastewater Reclamation Facility to generate solar energy under the California Public Utilities Commission Disadvantaged Communities-Green Tariff Program (DAC-GT).
EXECUTIVE SUMMARY
On June 21, 2018, the California Public Utilities Commission (CPUC) approved D.18-06-027, as a new program to promote Solar Generation for Disadvantaged Communities (DAC). Under this program, FCSD is pursuing a DAC-GT solar project through Pacific Gas & Electric (PG&E). On February 27, 2020, the City Council approved a Grant of Option Agreement with FCSD for the development of a 20 megawatt (MW) DAC-GT solar generation facility at South Cornelia Avenue south of West Jensen Avenue near the RWRF. Following approval of the Grant of Option, FCSD was required to downsize the project to a 10 MW facility requiring only 85 acres of land. The smaller size project and subsequent lower energy price offering has necessitated changes to the Grant of Option Agreement.
The attached First Amendment to the Grant of Option Agreement extends the expiration date from June 30, 2021 to December 31, 2021; reduces the lease price from $2,000 per acre with a three percent per year annual escalator to a fixed $1,000 per acre; allows for two 10-year lease exten...
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