On Friday, February 24, 2012, the U.S. Army issued a Request for Information seeking public comment on a draft solicitation to procure up to $7 billion in large-scale locally generated renewable and alternative energy on or near Army land using power purchase agreements or other contractual equivalents.
Comments on the draft solicitation must be submitted no later than March 21, 2012, in accordance with the solicitation.
When finalized, the solicitation will contemplate the award of multiple Indefinite Delivery / Indefinite Quantity (ID/IQ) contracts to qualified offerors, including both large and small businesses. Individual task orders will then be competitively awarded against the basic ID/IQ contracts for specific renewable energy projects of varying sizes up to $7 billion in project value. The Army plans to purchase electric energy from the projects, but will not own the generation assets.
Representatives from the U.S. Army Energy Initiatives Task Force, which is coordinating this effort, have indicated that in addition to recently published guidance related to off-base siting procedures, rules are currently being developed concerning requirements to use American-made products in their projects. The task force is also developing renewable energy certificate (REC) policies that will clarify, for example, the extent to which REC-swapping among various projects will be permitted.
We discussed this program when it was first announced in a previous legal alert. For a more in-depth discussion of the Army’s renewable energy efforts, see our article, “U.S. Army Invests in Renewables,” published in the November/December 2011 volume of World-Generation.