DEPARTMENT: Economic Development
DEPARTMENT HEAD: Alejandra Lopez
COUNCIL DISTRICTS IMPACTED: 10
SUBJECT:
An Ordinance approving an agreement with Carbonfree Chemicals SPE I LLC (Carbonfree) to participate in the CPS Energy E16 Economic Development Incentive Rate Rider (E16 Rider) Program.
SUMMARY:
An Ordinance approving an E16 Rider Agreement with Carbonfree, which provides energy discounts for economic development projects. Carbonfree qualifies for the E16 Rider Agreement as it will (1) meet CPS's minimum high-demand energy requirements; (2) retain 67 high-wage, full-time jobs; (3) create nine new high-wage, full-time jobs; and (4) hire at least two interns annually. The discount to Carbonfree is estimated to be $133,000 annually, for a two-year term, based on its projected energy usage. The discount will reduce costs associated with an innovative, green technology that will aid San Antonio in improving air quality.
BACKGROUND INFORMATION:
Carbonfree uses a process to capture chemicals released in the air during cement manufacturing. The process helps mitigate the effects of industrial pollution by extracting carbon dioxide from industrial gases and by forming products such as baking soda and hydrochloric acid on a commercial scale. The project is located at the Capitol Aggregates facility at 11503 Bulverde Road in City Council District 10.
An E16 Rider Agreement is a CPS Energy tariff authorized by City Ordinance No. 97263 to provide energy-intensive users a utility rate discount for qualifying projects that add 10 megawatts or more of new demand. Discounts range from 10% for two years, up to 50% for four years, based on higher demand requirements. Discounts can be extended for a maximum of 10 years. In order to receive discounts, a company must meet demand requirements and economic development requirements such as job creation, capital investment, and/or workforce participation for a set term or face recapture of the discount received. In ...
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