A resolution approving the Green Invest Agreement between the Tennessee Valley Authority, Nashville Electric Service, and the Metropolitan Government of Nashville and Davidson County for the purchase of renewable energy.
WHEREAS, renewable energy sources are inexhaustible, and free of climate-warming pollution that is harmful to human and environmental health; and,
WHEREAS, the Metropolitan Code of Laws Section 2.32.080 sets forth renewable energy portfolio standards to power Metro General Government operations, with the Metropolitan Government required to utilize 35% tier-one renewable energy sources by 2025, 2.45% of which must be derived from solar, and by 2041 to utilize 100% tier-one renewable energy, 10% of which must be from solar; and,
WHEREAS, in TVA territory considerable successful precedent exists for utility-scale solar projects executed under the “Green Invest” framework, including plans for a 212-megawatt solar farm for the Knoxville Utilities Board, a 35-megawatt solar farm for Vanderbilt University, two solar farms totaling 377-megawatts to support Facebook’s Alabama data center, and a 150-megawatt solar farm for Google’s Tennessee data center; and,
WHEREAS, the Metropolitan Government (“Metro”), the Tennessee Valley Authority (“TVA”), and Nashville Electric Service (“NES”) wish to enter into the Green Invest Agreement, an agreement which does not obligate Metro to purchase renewable energy, but acts as a vehicle for the parties to investigate the option for entering into one or more future Tranche Amendments, a copy of which Tranche Amendment is attached hereto as Exhibit B, to purchase renewable energy from new renewable generation resources, or to construct such resources at the request of Metro; and,
WHEREAS, in leu of providing performance assurance for each Tranche Amendment for the purchase of renewable energy, TVA has agreed to provide Metro with a Collateral Threshold of $25 million dollars, as further described in the Performance Assurance Agreement, attached hereto as Exhibit C; and,
WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that the Green Invest Agreement be approved, and in order for Metro to pursue timely compliance with its near and long-term Renewable Portfolio Standard benchmarks laid out in the Metropolitan Code of Law Section 2.32.080.
NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Green Invest Agreement between the Tennessee Valley Authority, Nashville Electric Service, and the Metropolitan Government of Nashville and Davidson County, for the potential purchase of renewable energy, a copy of which is attached hereto and incorporated herein, is hereby approved, and the Metropolitan Mayor is authorized to execute the same.
Section 2. That the Finance Director is authorized to execute Tranche Amendments for the purchase of renewable energy, in substantially similar form as the attached Exhibit B.
Section 3. That the Performance Assurance Agreement between the Tennessee Valley Authority and the Metropolitan Government of Nashville and Davidson County, a copy of which is attached hereto and incorporated herein as Exhibit C, is hereby approved, and the Metropolitan Mayor is authorized to execute the same.
Section 4. Any amendments, renewals, or extension of the terms of the agreement may be approved by resolution of the Metropolitan Council.
Section 5. That this resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Bob Mendes, Kyonzté Toombs, Angie Henderson, Tonya Hancock, Russ Bradford
Referred toBudget and Finance Committee
Public Works Committee
IntroducedJuly 21, 2020
AdoptedJuly 21, 2020
ApprovedJuly 22, 2020
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Last Modified: 08/03/2020 2:08 PM