Fuel Procurement Plan for the Lake Tahoe Basin - Placer County ...

with key potential suppliers is important. Examples of tasks to consider when contactingfuel suppliers and beginning negotiations are outlined below.‣ Make initial contact. Provide LTBBE project overview, projected fuel usagerequirements and fuel specifications. Secure pertinent data (contactinformation, historic fuel production, fuel types generated, current equipmentmix).‣ Meet in the field to view operations firsthand. Secure two fuel samples, onefor testing and one to review with LTBBE project development team.‣ Confirm current markets available for fuel supplier and current pricing.‣ Enter key findings into the fuel supplier ranking matrix.‣ If ranked as a top tier fuel supplier, approach with one of the following:o Letter of Intent (LOI), oro Letter of Intent/Term Sheet (LOI/TS).‣ Once LOI or LOI/TS is signed, begin negotiations for short-term or long-termfuel supply agreement.‣ Secure fuel supply agreement.Consistent with this fuel plan, TSS has created draft fuels specifications (Appendix C) foreach of the two primary fuel types targeted for LTBBE: forest-sourced and urbansourcedfuel. These fuel specification documents provide very detailed informationregarding fuel quality requirements and will be utilized in fuel procurement agreementsto assure delivery of clean, high-quality fuel.In addition, a letter of intent template (Appendix D) has been drafted for use by theLTBBE fuel procurement manager.Fuel Procurement AgreementsWhile a Letter of Intent will serve to confirm the prospective fuel suppliers’ interest inproviding fuel, it is not considered a binding agreement. There are a number of fuelprocurement agreement types, and each has a specific purpose. Summarized below is abrief description of fuel procurement agreements commonly utilized in NorthernCalifornia.‣ Letter of Intent. A non-binding agreement to formally begin discussionsregarding fuel availability and pricing. This is typically the initial agreement,one that brings the parties to the table.Fuel Procurement Plan for the Lake Tahoe Basin Biomass Power FacilityTSS Consultants29