(a) The Guam Department of Education (GDOE) may enter into one (1) or more Power Purchase Agreements (PPA) to purchase solar energy from qualified provider(s) which will be in the best financial interests of the government of Guam for a period up to and not exceeding twenty-five (25) years. Such qualified PPA provider(s) shall be selected by a Multi-Step Bid conducted by GDOE, in accordance with the procurement law and regulations of the government of Guam. The qualified PPA provider(s) will be responsible for providing a PPA to cover no more than eighty percent (80%) of the school’s power needs, all GDOE owned schools, and GDOE administrative and ancillary buildings. For schools occupied under a lease agreement as of the enactment of this Section, GDOE may amend its lease agreements or otherwise directly enter into a PPA with a lessor for the purchase of solar power produced with renewable energy directly from the lessor and without application of the procurement law. GDOE is encouraged to participate in energy efficiency programs available through the Guam Power Authority, and shall make every effort to secure federal funding opportunities to augment any local appropriations authorized for Power Purchase Agreements.

(b) The qualified PPA provider(s) shall be considered responsive if accepted proposals have been deemed technically acceptable and provide the best value to GDOE and the government of Guam.

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(c) The qualified PPA providers may submit a single proposal without limitation or discrimination on all proposals made in good faith. A qualified PPA provider(s) will be allowed to submit a single proposal for one GDOE facility or multiple GDOE facilities in good faith.

(d) The Guam Power Authority, under the direction of GDOE, shall provide bid specifications for the implementation of this Section, and shall provide technical assistance during the bid selection process as overseen by GDOE. GDOE shall seek technical consultation from the Guam Power Authority in implementing this Section, and the Guam Power Authority shall provide the technical consultation upon request at no cost to GDOE for the life of the contract. Upon GDOE’s request, GPA shall provide a cost-benefit analysis of a PPA to GDOE and to I Liheslaturan Guåhan within ninety (90) days of said request. GDOE may further seek technical consultation from the Guam Energy Office, the Department of Public Works, the Guam Renewable Energy Association, and/or a third party renewable energy consultant in implementing this Section, and the consultation shall be at no cost to GDOE. Any costs associated with a third party consultant will be passed through in total to the qualified PPA provider(s) equally and in full who is awarded the Multi-Step Bid.

(e) In concert with GDOE, the selected qualified PPA providers shall review historical power needs, such as the past twelve (12) months of power consumption, of the selected schools and provide the maximum sized photovoltaic safely allowed by roof size, building orientation and location, and other physical conditions which may affect the safe and effective size of the photovoltaic system. In no case shall the system be sized to produce power in excess of the needs of the specific building or campus as recorded during the previous twelve (12) months, exclusive of extraordinary circumstances, such as natural disasters, that may result in power generation greater than consumption for the period.

(f) The qualified PPA provider(s) shall pay for the design, financing, permitting, insurance, installation, monitoring and maintenance of the system, and shall own and operate the system

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located on GDOE’s facility for the life of the contract at no cost to
GDOE or the government of Guam.

(g) The qualified PPA provider(s) must possess a valid
Guam business license prior to the award of the contract.

(h) The qualified PPA provider(s) shall be experienced in designing, implementing and installing solar energy systems, and have a record of established projects, demonstrate technical, operational, financial and managerial capabilities to design and operate a solar energy system.

(i) The qualified PPA provider(s) shall warrant that the solar energy paid by GDOE will not exceed eighty percent (80%) of Guam Power Authority’s current billing charges to GDOE schools, GDOE administrative, and GDOE ancillary buildings, as determined by the most recent utility invoices for that selected building, school or campus. Escalation of rates for years two (2) through twenty-five (25) shall be determined and set in advance. At no time shall the qualified PPA providers produce power in excess of the needs of the designated school/campus, based upon annual consumption of the designated school/campus, exclusive of extraordinary circumstances, such as natural disasters, that may result in power generation greater than consumption for the period.

(j) The qualified PPA provider(s) shall work with GDOE concerning any existing school roofing warranties to ensure said warranties are not voided with the installation and operation of the solar energy systems.

(k) The qualified PPA provider(s) shall perform repairs to any portion of the roof damaged during the installation and operation of the solar energy systems, and shall maintain those repairs for the duration of the warranty or the contract, whichever is the shortest.

(l) Every year, on the anniversary of the date of the commissioning of the solar energy system, the qualified PPA provider(s) shall report to the GDOE on the production for the previous year comparing rates charged by the qualified provider against rates being charged by the utility detailing the savings for

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the previous year. GDOE shall transmit a copy of this report to the Speaker of I Liheslaturan Guåhan.

(m) The qualified PPA provider(s) shall not extinguish its obligations under the agreement by assigning it to another company that has met the requirements set forth in this Section without the approval of the Guam Board of Education, which will not be unreasonably withheld.

(n) Upon the expiration of the PPA, GDOE may have the option to purchase the solar energy system at an agreed upon Fair Market Value (FMV). FMV will be determined collaboratively by the PPA provider(s), GDOE, and a third party Subject Matter Expert (SME). GDOE also reserves the right to purchase the system at any time after the 7th year of the PPA at a determined FMV, and recognizes that a qualified PPA provider(s) would face negative impact tax implications if bought out prior to the stated timeframe.

(o) The agreement shall include a provision which will impose a monetary fine per day for each day beyond the agreed date that the qualified provider(s) promises to implement the solar energy system. The provisions in this Section shall not apply in the case of force majeure to the extent of delays caused by such force majeure. The provisions of this Subsection cannot be waived. Said monetary fines shall be deposited into Y Kuentan Salåppe’ Prinsepåt Fund, and shall be used for the school where the implementation of the solar energy system or any other renewable energy sources is delayed.

(p) Qualified PPA provider(s) may be allowed to locate and or co-locate the solar energy system on private or government property at another site for the purposes of achieving renewable energy power generation to satisfy the power consumption under this Section. GPA, who has also recognized the benefit of “”off site”” power generation, will recognize an offsite net metering for a qualified PPA providers, as long as the qualified PPA provider of solar energy system is in compliance with the current cap set forth for residential and commercial net metering, 25KW and
100KW per meter respectively. The following conditions must be met:

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(1) If the qualified PPA providers, doing its due diligence, identifies that the rooftop of any GDOE owned schools, GDOE administrative, and GDOE ancillary buildings and for schools occupied under a lease agreement may not be financially feasible due to the age or quality of the building’s rooftop.

(2) In the event that the utility grid is unable to receive the renewable energy source for the respective school, GDOE administrative, and GDOE ancillary buildings, and for schools occupied under a lease agreement, being interconnected with GPA’s utility grid.

(3) In the event that there is no room to install the photovoltaic solar energy system due to limited access of rooftops and real property of all GDOE owned schools, GDOE administrative, and GDOE ancillary buildings, and for schools occupied under a lease agreement.

(4) The qualified PPA provider(s) shall apply for a meter, at their own expense, to record the flow of power into the existing grid.

(5) If co-located, that each individual system be metered for each specific qualified PPA provider(s).

(6) The location of the off-site power generation has met all other building code and requirements.

(7) The qualified PPA provider(s) has submitted proof of land ownership and/or legal lease of land used for the purposes of solar power generation.

(8) The qualified PPA provider(s) will provide an interconnection study that validates the ability of a photovoltaic system prior to construction; if that photovoltaic system(s) is expected to exceed 100KW due to co-location.

(9) An interconnection study that dictates an improvement or an upgrade is required in order for a customer generator’s power to be accepted by GPA at grid connection will be the responsibility of the qualified PPA provider(s).

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(q) Throughout the qualified PPA provider’s management duration of any solar energy system procured and installed under this Act, the qualified PPA provider shall, at no cost in excess of the management agreement, remove and reinstall any such solar energy system at the request of the Superintendent of Education, if the facility that such system is installed upon undergoes renovation or demolition that may affect the usefulness of the solar energy system.

(r) Each participating school will have access to fifty percent (50%) of the energy savings yielded from the PPA and GDOE for the respective schools. The savings shall be transferred from the utility pool and deposited into Y Kuentan Salåppe’ Prinsepåt Fund for each respective school from the energy savings produced from the lower cost of energy provided by PPA. The funds will be available within thirty (30) days from the close of each quarter.

(s) Each participating school will have access to the remaining fifty percent (50%) of the energy savings yielded from the PPA for the respective schools. The savings shall be transferred to Maintenance Division for the maintenance and repair of all DOE schools from the utility pool and deposited into the Energy Efficient Fund for each respective school from the energy savings produced from the lower cost of energy provided by PPA. The funds will be available within thirty (30) days from the close of each quarter.

(t) GDOE will have access to the annual utility appropriation set forth in its GDOE budget for Power Purchase Payment commitments to its Qualified Power Purchase Agreement provider(s). In addition, GDOE will still be obligated from its utility appropriation to pay for the utility from Guam Power Authority which is not part of the Power Purchase Agreement.

(u) Pursuant to its authority under 17 Guam Code Ann. § 7116, the Guam Department of Education shall submit a report on the status of its progress to enter into power purchase agreements to the Speaker of I Liheslatura within thirty (30) days of enactment of this Act.

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SOURCE: Added by P.L. 32-095:2 (Nov. 27, 2013) as 17 Guam Code Ann. § 7120. Codified to this section by the Compiler pursuant to 1 Guam Code Ann. § 1606. Subsection (u) added by P.L 34-116:XII:18 (Aug. 24, 2018). Subsections (a) and (d) amended by P.L. 35-076:2 (Mar. 20, 2020).

2013 NOTE: This section was originally entitled, “”Donations to the
Fund.”” Added by P.L. 28-068:II:I:12 (Sept. 30, 2005). Repealed by P.L.
30-008:2 (Apr. 3, 2009).