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October 2012

To Potential Bidders:  Procurement of Environmental Attributes

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OVERVIEW OF REQUEST
The New York Power Authority (“NYPA” or “Authority”) is hereby issuing a request for bids for the purchase of Environmental Attributes (also known as Renewable Energy Attributes or RECs) (hereinafter, “Attributes”) for itself and/or resale to its customers. The Authority is requesting bids for up to 30,000 MWh of Attributes over the period 2013 - 2014. Product types, quantities, and terms requested are shown on Attachment A hereto. All purchases will be in the Authority’s name.

BIDS ARE TO BE SUBMITTED VIA EMAIL TO CHRISTOPHER.FRY@NYPA.GOV BY 5:00 PM on 11/12/2012.

GOAL OF RENEWABLE PURCHASES
Purchases may be made up to the amounts shown on Attachment A, for specific purposes as described below. Please note that Renewable Energy Attributes may be both Green-e Energy eligible and EO111 compliant. Please indicate eligibility (e.g. Green-e Energy, EO111, or both) of all products bid.

1. Green-e Energy eligible Attributes:
Attributes may be purchased for voluntary purposes and may be required to be eligible for Green-e Energy certification. Green-e Energy is an independent program of the non-profit Center for Resource Solutions that verifies and certifies renewable energy products. In order to be certified as Green-e Energy, a renewable energy product must undergo a thorough annual verification procedure, which ensures that it is properly accounted for, originates from a facility that meets the requirements of the Green-e Energy National Standard, and has not been double-counted. Potential providers are referred to the Green-e website (www.green-e.org) for full information and guidance on what products and energy sources are Green-e Energy eligible.

2. Compliance with New York State Executive Order 111:
Attributes may be purchased for compliance with New York State Executive Order 111 dated June 10, 2001 (hereinafter, “EO 111”). Potential suppliers are referred to the Guidelines for Executive Order III, Section 5, Requirements for the Purchase of Renewable Power, for a description of the products eligible for compliance with EO 111. Please see the link to the Guidelines to the Executive Order, shown below.
(http://www.nyserda.ny.gov/~/media/Files/EERP/Commercial/Sector/Municipalities/exec-order111-guidelines.ashx?sc_database=web)

EO 111 Eligible Resource Types
For compliance with EO 111, eligible resource types are defined as those facilities generating energy from the following technologies:

• Wind
• Solar thermal
• Photovoltaics
• Sustainable managed biomass, which for these purposes shall include all wood resources, with the exception of contaminated waste wood, and shall exclude utility-scale facilities that co-fire with coal
• Tidal
• Geothermal
• Methane waste (from landfills or anaerobic digesters)
• Fuel cells

Hydro production will not be considered for EO 111 compliance purchases.

3. Voluntary
Attributes may be purchased solely for voluntary purposes and may not be required to be eligible for Green-e Energy certification or EO111 compliance.

For purposes of this procurement, supplier is responsible for providing warranty that Attributes bid meet stipulated specifications such as Green-e Energy and/or EO111 compliance eligibility.

REQUIREMENTS FOR ALL PURCHASES

New York State Environmental Disclosure Program

The successful bidder(s) must satisfy the requirements of the Environmental Disclosure Program Rules and Procedures for Conversion Transactions, or any successor rules, established by the New York State Public Service Commission (“NYS PSC”). A Conversion Transaction occurs when an entity that sold energy into the New York Independent System Operator (“NYISO”) Spot Market and an entity that purchased a like amount of energy out of the NYISO Spot Market during the same settlement period jointly identify for the Administrator of the Environmental Disclosure Program such packet of energy such that it can be disaggregated, for environmental disclosure purposes, from the residual pool of Spot Market energy. Conversion Transaction procedures are described in more detail on the Department of Public Service website at: http://www3.dps.ny.gov/W/PSCWeb.nsf/All/502EF210A0D15B2885257687006F39D8?OpenDocument.

In accordance with this requirement, the Attributes must be associated with electrical energy delivered into the New York Independent System Operator (NYISO) spot market directly from a generator or marketer.

Potential suppliers may also be asked to furnish proof of prior or current contracts for the commodity stated herein to demonstrate their ability to satisfactorily operate in the renewable energy market in New York State.

FOLLOWING SUPPLIER SELECTION AND CONTRACT AWARD:

Verification of Rights to Attributes
Throughout the contract term, NYPA will require certification/ verification of delivery of all rights to the Attributes purchased by NYPA as follows:

• Each invoice submitted by the successful bidder requesting payment must be accompanied by an appropriate Certification, which will identify the number and vintage of all Attributes for which payment is requested, bear an appropriate certification as to the eligibility of such Attributes and transfer all rights and assignments to NYPA.
• In the event the NYS PSC, solely or in conjunction with others, creates, sanctions, adopts or begins participation in a Generation Tracking System in the New York Control Area (“NYCA”) during the term of the agreement contemplated in this bid solicitation, each Attribute associated with fulfillment of the selected bidder’s requirements must be transferred to an account designated by NYPA.
• Facilities providing products that are not located in the NYCA, but are located in a control area with a compatible generation tracking system at the time of submittal of the Bid Proposal, must deliver RECs associated with the Attributes to an account designated by NYPA. For example, the NEPOOL Generation Information System and the PJM Generation Attribute Tracking System are deemed compatible systems by the administrator of the NYS Environmental Disclosure Program.
• For facilities outside the NYCA, the NYS PSC may require verification of delivery of the electricity associated with the Attributes into the NYISO Spot Market.

No Double Counting
In no event shall the Attributes of the generation associated with NYPA’s contract(s) under this solicitation be assigned or sold by the seller in another transaction. Any assignment or application by the seller of the Attributes associated with a contract with NYPA under this solicitation to any other entity, program or jurisdiction, whether associated with a publicly administered program or a voluntary transaction, is strictly prohibited.

SUBMISSION OF BID PROPOSALS

BIDS ARE TO BE SUBMITTED VIA EMAIL TO CHRISTOPHER.FRY@NYPA.GOV BY 5:00 PM on 11/12/2012.

• Bidders should use the form of Attachment B included herein, or provide substantially similar information.
• Bidders may provide quotations for any or all of the products and quantities.
• Bidders shall provide quotations for each of the terms requested for any products bid.
• Bidders may provide multiple options for the products and quantities requested.

Bidder shall provide, along with pricing for Attributes, location and name of associated facility(ies) and a full description of the eligible resource type for Attributes bid. Bidder shall specify the eligibility of products bid for the various purposes requested (e.g. Green-e and/or EO111). Bidder shall indicate the expiration date of the bid submitted, which must be no earlier than 60 days after the date of submittal. In addition, Bidder shall provide a brief description of its business organization, history, and financial condition.

Required Contract Agreement
Selected supplier(s) shall be required to execute a contract substantially similar to the contract set forth in Attachment C hereto. No material changes to this contract will be accepted.

Evaluation Process and Criteria
Proposals must be complete, in conformance with the specifications and other requirements of this solicitation, and must include all documentation, evidence or verification requested. Submittals will be evaluated primarily according to price, with consideration given to the creditworthiness of the bidder. Preference may be given to products generated in New York State and products exceeding the minimum requirements (e.g. Green-e Energy eligible or EO111 compliant products for voluntary purchases).

Basis for Disqualification
A bidder may be disqualified and the bid not considered for reasons including, but not limited to, the following:

• receipt of the bid after the deadline for submission;
• failure to meet all eligibility requirements;
• incomplete bid;
• willful misrepresentations in the bid;
• illegal or undue attempts to influence the bid review process;
• a determination by NYPA, in its discretion, that some or all bids should be rejected.

The Authority reserves the right, in its sole discretion, to withdraw or modify this solicitation at any time, to reject any or all bids for any reason, or no reason, and to enter into further discussions or interviews with any one or more Bidders. Awards may be made to more than one Bidder.

COMMUNICATION DURING THE SOLICITATION PROCESS

NYPA’s contact for this solicitation is:

Christopher Fry
Energy Resource Management
New York Power Authority
123 Main Street
White Plains, New York 10601
(914) 287-3435
Christopher.Fry@nypa.gov
www.nypa.gov