Prgram Feasibility Study and Design & Cnstructin GRANTS Rund 7 Backgrund and Instructins Slicitatin N. 2016-CH-R7 Slicitatin Manager: Amy Barad Slicitatin Psted: December 11, 2015 Applicatins Accepted: Rlling, thrugh March 11, 2016
Table f Cntents 1. Intrductin... 1 1.1. Overview... 1 1.2. Purpse f this Dcument... 1 1.3. Wh We Are... Errr! Bkmark nt defined. 2. Key Definitins... 2 3. Minimum Applicant and Prject Requirements... 5 4. Feasibility Study Grant Specifics... 8 4.1. Funding and Cst Share... 8 4.2. Supprted Activities, Required Deliverables and Milestnes... 8 4.3. Payment Schedule... 9 5. Design & Cnstructin Grant Specifics... 9 5.1. Prject Funding and Cst Share... 9 5.2. Supprted Activities... 10 5.3. Deliverables, Milestnes, and Payment Prcess... 11 6. Selectin Prcess and Criteria... 13 6.1. Selectin Prcess... 13 6.2. Selectin Criteria... 13 7. Applicatin Prcess... 15 7.1. Applicatin Frms... 15 7.2. Authrized Respndents Signature and Acceptance Frm... 15 7.3. Applicatin Package... 16 7.4. Applicatin Timeframe... 16 7.5. Questins... 16 8. General Cnditins... 17 8.1. Ntice f Public Disclsure... 17 8.2. Cntractual Requirements... 17 8.3. Waiver Authrity... 17 8.4. Disclaimer... 18 8.5. Grant Taxability... 18 Appendices t this Slicitatin and assciated applicatin frms are available as separate dcuments. i
1. Intrductin 1.1. Overview The Prgram prvides grants fr cnstructin prjects and feasibility studies fr eligible hydrpwer generatin facilities. Thrugh the prvisin f this supprt, Cmmnwealth Hydr seeks t increase the utput and eclgical acceptability f hydrpwer facilities that are qualified fr the Massachusetts Renewable Energy Prtfli Standard (MA RPS), r have a strng likelihd f attaining qualificatin, as further explained herein. Applicants facilities must als be licensed by the Federal Energy Regulatry Cmmissin (FERC), have an rder frm FERC indicating that they are nnjurisdictinal t FERC, r have a determinatin frm FERC that they are a qualifying cnduit hydrpwer facility in accrdance with FERC Order 800. Applicants may request funding in the fllwing activity areas: Upgrade f existing hydrpwer facilities, including but nt limited t turbine replacement r refurbishment; rewinding f generatrs installatin r upgrade f autmated cntrls replacement f wden flashbards with rubber skirt/inflatable crest gate systems enhanced fish r eel passage (in cnjunctin with measures t increase generatin) Develpment f new hydrpwer facilities that are eligible fr FERC cnduit exemptins Feasibility studies fr any f the types f prjects listed abve Grants fr cnstructin prjects (with r withut a design phase) will be capped at the lesser f $600,000, r 50% f actual csts, r $1.00 per incremental kilwatt hur per year (e.g., a grant fr a prject that csts $1 millin and will increase a facility s utput by 250,000 kwh per year wuld be capped at $250,000). Applicants fr cnstructin grants must explain hw the requested amunt, if awarded, wuld affect the prject s financial viability. Grants fr feasibility studies will be capped at $45,000, subject t a frmula and cst-share requirements described in Sectin 4.1 belw. Apprximately $875,000 is available fr Rund 7. Applicatins will be accepted under this slicitatin n a rlling basis until March 11, 2016, r until funds are exhausted, whichever cmes first. It is the Applicant s respnsibility t check fr updates t this slicitatin n MassCEC s website. 1.2. Purpse f this Dcument The purpse f this Backgrund and Instructins dcument is t explain the eligibility requirements, supprted activities, applicatin prcess and payment prcess fr grants ffered by the Cmmnwealth Hydrpwer Prgram. Assciated with this dcument (as separate dwnladable files frm the web page http://www.masscec.cm/hydr) are the fllwing frms and appendices: Title Frm A Frm B (FS) Frm B (D&C) Frm C Appendix A Appendix B-1 Dcument Cntents Authrized Applicant Signature and Acceptance Statement Feasibility Study Grant Applicatin Design and Cnstructin Grant Applicatin Frm Standard Budget Frms MassCEC General Terms and Cnditins Feasibility Task Order Template 1
Appendix B-2 Appendix C Appendix D Design & Cnstructin Task Order Template (includes Minimum Technical Requirements and Milestne Checklists and Templates) Sample Feasibility Study Outline Energy Mdeling Methdlgy 1.3. Wh We Are The Massachusetts Clean Energy Center Created by the Green Jbs Act f 2008, the Massachusetts Clean Energy Center (MassCEC) is dedicated t accelerating the success f clean energy technlgies, cmpanies and prjects in the Cmmnwealth while creating high-quality jbs and lng-term ecnmic grwth fr the peple f Massachusetts. Since its inceptin in 2009, MassCEC has helped clean energy cmpanies grw, supprted municipal clean energy prjects and invested in residential and cmmercial renewable energy installatins creating a rbust marketplace fr innvative clean technlgy cmpanies and service prviders. The Prgram is a prgram administered by MassCEC. The principal gal f the prgram is t facilitate, in a timely manner, greater energy prductin frm hydrpwer facilities that are eligible fr the MA RPS. 2. Key Definitins FERC-Related Terms (Disclaimer: These infrmal definitins are prvided t help Applicants understand the terms as used by MassCEC and d nt represent frmal, legal definitins as may be prvided in federal law, regulatin, FERC rder, curt decisins, etc. Regulatry definitins may be fund at 18 CFR Sectin 4.30.) Cnduit Exemptin Exemptin A type f authrizatin issued by FERC intended fr facilities that recver energy frm water flwing thrugh a manmade water cnveyance (e.g., tunnel, canal, pipeline, etc.) that was riginally cnstructed t distribute water fr municipal, irrigatin r industrial cnsumptive purpses and nt primarily fr the generatin f electricity. The cnduit may nt be an integral part f a dam. An example f a prject likely t qualify fr a cnduit exemptin is the replacement f a pressure reducing valve with a turbine in a drinking water distributin system. An example f a situatin nt likely t qualify fr a cnduit exemptin is the additin f a generatin system t a dam s spillway, which discharges int a stream. See als, Qualifying Cnduit Hydrpwer Facility, belw. A type f authrizatin issued by FERC fr the cnstructin and peratin f a hydrelectric facility in which the hlder is exempt frm certain prvisins f the Federal Pwer Act; the hlder is subject t cnditins attached t the exemptin. Types f exemptins include small facility exemptins and cnduit exemptins. Exempt prjects are nt exempt frm federal and state review r permitting. Exemptins are issued in perpetuity and d nt expire. Exemptins are smetimes referred t as a type f license. 2
Federal Energy Regulatry Cmmissin (FERC) The federal agency with versight f hydrpwer generatin, including the issuance f licenses fr the cnstructin f new prjects and versight f all nging prject peratins, including dam safety inspectins and envirnmental mnitring. See: http://www.ferc.gv/industries/hydrpwer.asp FERC Order License Nn-Jurisdictinal t FERC Qualifying Cnduit Hydrpwer Facility A frmal Order issued by FERC. The authrizatin issued by FERC fr the cnstructin and peratin f a hydrelectric facility. Licenses are typically gd fr 30 t 50 years and require renewal upn expiratin. Exemptins are smetimes referred t as a type f license. A facility that, in FERC s pinin, meets the fllwing criteria: 1. wuld be cnstructed, perated, r maintained fr the generatin f electric pwer using nly the hydrelectric ptential f a nn-federally wned cnduit, withut the need fr a dam r impundment; 2. wuld have a ttal installed capacity that des nt exceed 5 MW; and 3. is nt licensed under, r exempted frm, the license requirements in Part I f the Federal Pwer Act, as f August 9, 2013. T btain a determinatin that a prject is a Qualifying Cnduit Hydrpwer Facility, an entity must file with FERC a ntice f its intent t cnstruct the facility that demnstrates the facility meets the criteria abve. Fr mre infrmatin, see: Facilities that are nt required t have FERC authrizatin. Very few facilities are nt subject t FERC jurisdictin. Typically, nn-jurisdictinal facilities are nly thse that have been in cntinuus peratin since 1935 and whse capacity has nt been increased since that time. The navigability f the waterway may als be a factr. Nte that use f all a hydr facility s utput behind the meter is nt generally a basis fr a determinatin that the facility is nn-jurisdictinal t FERC, particularly if the hst facility is therwise cnnected t the electric grid. Fr infrmatin n determining FERC jurisdictin, see: http://www.ferc.gv/industries/hydrpwer/gen-inf/cmpadmin/jur-deter.asp http://www.ferc.gv/whats-new/cmm-meet/2014/091814/h- 1.pdf 3
Other Terms Allwable Expenses Applicant Direct Labr Facility Facility Capacity Grantee Lw Impact Hydrpwer Institute (LIHI) Massachusetts Renewable Energy Prtfli Standard (MA RPS) Expenses that may be included in the Prject Budget and may therefre cunt tward Applicant s cst share r be reimbursable. See the end f Frm B (Applicatin Frm) fr mre detail. Any persn wh is seeking funding r ther financial supprt frm, r has submitted ne r mre prpsals fr prjects t MassCEC under any f MassCEC s prgrams r initiatives, as in effect frm time t time Labr by emplyees f the Grantee, including wners f the cmpany. The lcatin and structures at which a Prject wuld take place. The lesser f the Facility s ttal generatr nameplate capacity r ttal turbine nameplate capacity. The entity that has applied fr, been awarded, and executed an agreement fr a grant frm MassCEC. Grants are nt transferrable. The nn-prfit rganizatin whse certificatin is generally required fr hydr facilities t qualify fr the MA RPS. See: www.lwimpacthydr.rg Nte that fr cnduit facilities, LIHI certificatin is nt required fr MA RPS qualificatin. The requirement that Massachusetts electric cmpanies include a minimum percentage f qualified renewable energy in the electricity that they sell, that defines the types f generatrs that may qualify as renewable, and that prvides the qualificatin prcess. Fr mre infrmatin, please see this webpage: http://www.masscec.cm/cntent/generatin-infrmatinsystem-ne-gis-and-renewable-energy-certificates-recs-0 Prject Rutine Repair The wrk that wuld be funded by the requested MassCEC grant either the feasibility study, r the design and cnstructin activities. MassCEC recgnizes that this is a different use f the term Prject than the way it is ften used by thers. Wrk dne t address custmary wear and tear n equipment and structures, t maintain them in gd wrking cnditin. 4
3. Minimum Applicant and Prject Requirements Each Applicant must demnstrate cmpliance with the fllwing minimum criteria: Criteria Eligible Applicant FERC Status MA RPS Status Facility Size, Type and Lcatin Minimum Requirement An Eligible Applicant may be a cmmercial, industrial, institutinal, nn-prfit r public entity. The Applicant must demnstrate lng-term site cntrl ver the prject lcatin and the rights t the water used t pwer the system. If the Applicant des nt wn the dam r cnduit assciated with the prject, a letter f supprt frm the dam r cnduit wner is required. Nte that nce an Applicant has been awarded a grant and executed a grant agreement with MassCEC, that entity is referred t as the Grantee. Subject facilities must have a FERC license r exemptin and be in substantial cmpliance with its cnditins (the need t amend a license r exemptin t accmmdate the prpsed prject will nt disqualify the facility), OR have a FERC rder indicating the facility is nn-jurisdictinal t FERC (the prpsed prject must nt jepardize this status, as determined by MassCEC in the sle exercise f its discretin), OR have a FERC determinatin that the facility is a Qualifying Cnduit Hydrpwer Facility, OR be seeking a license r exemptin under ne f the fllwing cnditins: n a canal system where envirnmental cnditins are managed by the canal system peratr under an existing FERC license, OR likely be eligible fr a cnduit exemptin (the determinatin that a facility is likely eligible fr a cnduit exemptin shall be at MassCEC s sle discretin). Facilities must be qualified fr the Massachusetts Renewable Energy Prtfli Standard (MA RPS), r demnstrate a strng likelihd f gaining qualificatin. See: Massachusetts RPS Regulatins. In mst cases, this will entail certificatin by the Lw Impact Hydrpwer Institute (LIHI). (Nte that fr facilities authrized under a FERC cnduit exemptin r that have a FERC determinatin as a Qualifying Cnduit Hydrpwer Facility, LIHI certificatin is nt required fr MA RPS qualificatin.) Applicants must be familiar with LIHI s criteria fr certificatin and hw thse criteria apply t their facilities. See: www.lwimpacthydr.rg. T help MassCEC understand the likelihd f LIHI certificatin and MA RPS qualificatin, the applicatin requirements include cnsultatins with the Massachusetts Department f Fish and Game (DFG). Fr all applicatins, such cnsultatins must be dcumented by a letter frm DFG. (See Sec. 5.1, belw.) Applicants whse facilities are already LIHI-certified must seek MA RPS qualificatin. Nte that MassCEC will nt disburse cnstructin-phase funds until the Massachusetts Department f Energy Resurces qualifies a Grantee s facility fr the MA RPS r indicates that qualificatin is imminent. Capacity: Fllwing cmpletin f the prpsed prject, the prtin f the ttal facility capacity that is attributable t increased capacity and efficiency 5
Criteria Minimum Requirement imprvements implemented after December 31, 1997 must nt exceed 30 MW. Incremental Generatin: Prpsed prjects must result in incremental generatin as cmpared t histrical annual generatin, as fllws: Prject Type Cnstructin Cnduit Hydr Feasibility Study Nn-Cnduit Feasibility Study Minimum Incremental Generatin 50,000 kwh/year N minimum requirement 200,000 kwh/year Useful Life: Applicants prpsing t rehabilitate r upgrade existing facilities must affirm that the prject will have a useful life f at least 20 years and/r that plans and financing are in place t make additinal repairs t achieve this useful life. Type: This slicitatin is nt intended t supprt demnstratin r pilt prjects. Lcatin: Facilities that are lcated within the service territry f an electric distributin cmpany that pays int the Massachusetts Renewable Energy Trust are eligible. If the Applicant s facility is lcated within the service territry f Massachusetts Municipal Lighting Plant (MLP) r intercnnects with an MLP, the MLP must have executed a Renewable Energy Trust Fund Membership agreement with either MassCEC r the Massachusetts Technlgy Cllabrative. Fr mre infrmatin regarding eligible MLPs, see: http://www.masscec.cm/cntent/municipal-lighting-plant-cmmunities. Prject Timeframe and Milestnes Eligible Technlgies Feasibility Studies: Draft final study must be cmpleted within 12 mnths frm the effective date f grant agreement; final study within 15 mnths frm the effective date f grant agreement. Design & Cnstructin: Standard prject cmmissining deadlines are three years frm the effective date f a grant agreement fr Design & Cnstructin grants and tw years frm the effective date f grant agreement fr Cnstructin-nly grants. Applicants may request waivers fr these deadlines, with justificatin fr the lnger timeframe requested t be included in the applicatin. Prjects with shrter timeframes until cmpletin are preferred. All prjects must adhere t prject milestnes, detailed further in this slicitatin. MassCEC reserves the right t rescind awards frm prjects that d nt meet the milestnes in the grant agreement. Only prjects emplying established, cmmercially-available technlgies are eligible fr funding under this Slicitatin. Dams assciated with prpsed prjects must be intact (i.e., must nt have been breached). Prjects requiring new dams are ineligible. This slicitatin is nt intended t supprt prjects using hydrkinetic technlgies in marine envirnments. 6
Criteria Demnstratin f Feasibility/Pre- Feasibility Financial Need Minimum Technical Requirements Related Parties Minimum Requirement Applicants fr Cnstructin r Design & Cnstructin grants must prvide the results f a feasibility study addressing technical, envirnmental, regulatry, and ecnmic factrs. This includes a rigrus estimate f incremental generatin t be achieved, derived in accrdance with the guidelines in Appendix D. Applicants fr Feasibility Study grants shuld demnstrate that sme prefeasibility wrk has been dne, including a descriptin f existing infrastructure, a characterizatin f the water resurce t be used, an estimate f the annual incremental amunt f electricity t be generated (kilwatt-hurs per year), an identificatin and descriptin f pssible electrical intercnnectin lcatins, an estimate f nsite lad (if any), the regulatry and permitting status f any existing facility, and an identificatin f parties with whm t cnsult n ptential eclgical impacts f the prpsed prject. All Applicants must state their financial threshld fr facility investments (e.g., simple payback requirement r minimum internal rate f return). Applicants fr Cnstructin r Design & Cnstructin grants must als demnstrate hw the requested supprt enables the prject t meet that threshld. Please nte: Applicants are advised t review Sectin 8.1 heref, regarding Ntice f Public Disclsure and treatment f cnfidential infrmatin. Installatins must cmply with the Minimum Technical Requirements in Appendix B-2, Attachment 4. Hydrelectric turbines and generatrs may be either new r refurbished. Hwever, all equipment shuld be accmpanied by warranties and service supprt ptins, which may be subject t MassCEC apprval. Wherever feasible, Grantees must participate in MassCEC s Prductin Tracking System (PTS) fr purpses f tracking the incremental pwer prduced by the prject. (See: www.masscec.cm/pts). Cnstructin prject budget can reflect the purchase and installatin f a data acquisitin system (DAS) r ther equipment needed fr participatin in the PTS. Please see listing f DAS prviders fr mre infrmatin: http://www.masscec.cm/cntent/dataacquisitin-systems-das-service-prviders Unless waived by MassCEC, the reprting must be accmplished thrugh use f an autmated data acquisitin and reprting system; where this is impractical, manual reprting may be allwed. The Applicant must prcure services frm subcntractrs using cmmerciallyrespnsible prcurement mechanisms, and t the greatest extent practicable, using cmpetitive prcurement prcedures. Furthermre, the Applicant is required t ntify MassCEC in the event that it intends t r has entered int an agreement fr gds r services with a related party. Fr purpses f this slicitatin, a related party is any entity that shares any cmmn wnership with Applicant. In the event Applicant is given an award, MassCEC must apprve the use f any related party in writing prir t awardee using MassCEC funds t pay fr the expenses assciated with such related party. 7
NOTE TO APPLICANTS: The next tw Sectins (4 and 5) are specific t the type f prject funding requested. Applicants fr Feasibility Study grants shuld read Sectin 4 and skip Sectin 5. Applicants fr Design & Cnstructin grants shuld skip Sectin 4 and read Sectin 5. The remainder f the Backgrund and Instructins applies t bth grant types. 4. Feasibility Study Grant Specifics 4.1. Funding and Cst Share MassCEC is ffering reimbursement grants fr the study f the feasibility f new cnduit facilities and f the upgrade f existing facilities. Studies fr nn-cnduit facilities, which must be expected t increase generatin by at least 200,000 kwh/year, are eligible fr up t $45,000. Fr a cnduit facility, the maximum grant will be calculated as fllws: Maximum Grant = Expected incremental kwh per year x 20 years x $0.01125, r $45,000 per facility, whichever is less Applicants are encuraged t request less than the maximum. All applicants must demnstrate hw they estimate the expected incremental kwh per year. While the estimates may be preliminary, they shuld be based n the basic physical parameters f the setting t be studied and the technlgy t be emplyed. (Nte: Fllwing the guidelines in Appendix D is ptinal fr purpses f an applicatin fr a Feasibility Study grant; hwever, these guidelines must be fllwed as part f perfrming the Feasibility Study.) Applicants fr cnduit facility feasibility studies must cntribute at least 10% f the ttal Allwable Expenses. All ther applicants must cntribute at least 20% f the ttal Allwable Expenses. Permitted cntributins fr purpses f satisfying these cst share requirements may include payments t subcntractrs/cnsultants, direct materials and ther direct expenses. Grantee Direct Labr r Related Party labr are permitted as part f the cst share. Grants frm ther entities such as federal r state agencies r charitable fundatins are als permitted as part f the cst share. Hwever, cnsultants t the Grantee may nt incur any part f the Grantee s cst share n Grantee s behalf. A summary f Allwable Expenses that may be included in the prject budget is included at the end f the applicatin frm. N mre than 50% f the Allwable Expenses in any feasibility study prject budget may be fr Direct Labr and/r Related Parties labr, and n mre than 20% fr legal expenses. MassCEC may specify lwer limits in individual grant agreements. While Applicants fr Design & Cnstructin grants must demnstrate prject feasibility, a MassCEC-funded feasibility study is nt a prerequisite fr applying. 4.2. Supprted Activities, Required Deliverables and Milestnes All feasibility studies shuld address the technical, regulatry, and ecnmic feasibility f the prpsed prject, including issues related t btaining certificatin as a Lw Impact Hydrpwer facility. The studies may include assessments f available flw, envirnmental impacts, cincident nsite electricity cnsumptin, intercnnectin needs, ecnmic analyses and financing ptins. The study shuld discuss any aspects f the facility s cnditin that may jepardize generatin, including repairs needed. The scpe f the feasibility study shuld be cmmensurate with the needs f the facility and shuld nt repeat analyses that may already be available and culd be attached. Appendix C prvides an utline f a cmprehensive feasibility study. Nt every prject may need every sectin; cnversely sme prjects may need t address ther tpics. It is the Grantee s respnsibility t ensure that all relevant tpics are included. All studies shuld include a rigrus estimate f the increase in average annual energy generated as a result f the upgrades examined. T the extent feasible, that estimate shuld be made in accrdance with the energy mdeling methdlgy utlined in Appendix D. 8
The required deliverables include a Draft Final Feasibility Reprt and a Final Feasibility Reprt. Grantees must review cnsultant wrk prducts and ensure that its cmments have been addressed prir t submissin t MassCEC. Draft Final Feasibility Reprts must be submitted in an editable Wrd frmat t facilitate cmment by MassCEC. If MassCEC staff ffer cmments n the Draft, these cmments shuld be addressed in the Final reprt. All deliverables must be submitted by the Grantee (nt a cnsultant t the Grantee). The Draft Final Feasibility Reprt must be cmpleted within 12 mnths f the effective date f the award, and the Final Feasibility Reprt must be cmpleted within 15 mnths f the effective date f the award. Failure t meet these milestnes may result in rescissin f the award. Shrter timeframes are encuraged. If, during the curse f the feasibility study, the Grantee and/r its cnsultants determine that the prject is clearly infeasible, the Grantee shuld cntact MassCEC t prvide an infrmal, interim status reprt. MassCEC will determine whether the study shuld be cmpleted as riginally planned, r an abbreviated frm f the study shuld be prepared instead. The purpse f this prvisin is t avid unnecessary expenditures (by MassCEC r the Grantee) n studies that will lead t neither actual upgrade/cnstructin prjects nr infrmatin that wuld have general value t the public. If MassCEC determines that a shrtened versin f the study shuld be prepared, the grant may be reduced accrdingly. Please pay careful attentin t the insurance requirements listed in the Task Order template (Appendix B- 1). MassCEC may request evidence f the required insurance upn executin f the grant agreement r at any time thereafter. 4.3. Payment Schedule Disbursement f the Feasibility Study grant will be made in ne payment at the cnclusin f the prject. Payment is cntingent upn electrnic submissin t MassCEC f all the required deliverables, which are subject t MassCEC review and apprval; a request fr payment; and a signed, cmpleted, Expenditure and Cst-Share Certificatin ( Certificatin ). As part f the Certificatin, Grantees must represent that they have paid their share f prject csts. N grant funds may be used t reimburse r write dwn csts incurred prir t the effective date f an agreement with MassCEC, which in n case will be earlier than the date f the award f a grant. (See Sectin 8.2 and Appendices A and B-1 fr mre infrmatin abut cntractual requirements.) Grantee must maintain financial recrds relating t the receipt and expenditure f all funds related t the prject, including the required Cst Share, fr at least seven years fllwing prject final grant disbursement. These recrds may be audited at any time by MassCEC r its agents. 5. Design & Cnstructin Grant Specifics 5.1. Prject Funding and Cst Share The maximum award is $600,000 per prject. Applicants may request grant funding fr bth the design and cnstructin phases f a prject, r fr the cnstructin phase alne. MassCEC will award funding fr bth the design and cnstructin phases simultaneusly. While the inclusin f a design phase is ptinal, MassCEC cnsiders design, intercnnectin studies, initial permitting and licensing (i.e., all the pre-cnstructin requirements), as well as applicatin fr certificatin by the Lw Impact Hydrpwer Institute all t be design phase activities. If an Applicant is requesting bth design and cnstructin funding, a separate budget shuld be submitted fr each phase. Up t 25% f the ttal award may be applied t the design phase, if any. Fr example, if the ttal request is fr $400,000, up t $100,000 f that may be used in the design phase. Awards will als be capped at $1.00 per kilwatt hur f incremental generatin per year as cmpared t histrical generatin. Fr example, if the upgrades t a facility are estimated t result in incremental generatin f 250,000 kwh per year, then the award will be capped at $250,000. Nte that the estimate f incremental generatin per year must be calculated in accrdance with the guidelines described in 9
Appendix D. Fr applicants requesting a ttal grant f less than $75,000, MassCEC will allw reasnable adjustments t this apprach. A summary f Allwable Expenses is included at the end f the applicatin frm. N mre than 25% f the budget fr any phase may be fr Grantee s Direct Labr and/r Related Parties labr. N mre than 10% f the prject budget may cnsist f legal expenses. MassCEC may specify lwer limits in individual grant agreements. All awards require a minimum 50% Grantee cst share. This requirement applies t each phase individually. Depending n prject specifics, the required cst share may be higher. Grantee Direct Labr can cunt tward the cst share, subject t the limitatin described abve. The abve caps ntwithstanding, an Applicant must clearly demnstrate hw the requested grant enables the prpsed prject t meet r exceed the Applicant s financial threshld. Applicants are encuraged t request less than the maximum fr which they are eligible. Funds will be disbursed accrding t the payment schedule described in Sectin 5.3, belw. 5.2. Supprted Activities Awarded funds can supprt the fllwing activities: Supprted Design & Cnstructin Activities Design & Permitting Activities Design and permitting activities that are eligible fr funding under this Slicitatin may include, but are nt limited t, the fllwing: preparatin f final detailed system design, technical specificatins, and securing f equipment/cnstructin qutatins cmpletin f generatin intercnnectin studies and executin f Intercnnectin Service Agreement between the awardee and the awardee s electric distributin cmpany preparatin f permitting r licensing dcuments and securing f permits, new licenses (cnduit exemptins nly) r license amendments needed fr cnstructin preparatin f envirnmental impact studies and reprts, if applicable public utreach related t permitting r licensing preparatin f dcuments fr facility certificatin by the Lw Impact Hydrpwer Institute; assciated applicatin fees Cnstructin Activities Cnstructin, installatin and cmmissining activities that are eligible fr funding under this Slicitatin may include, but are nt limited t, the fllwing: site preparatin, including significant repairs r mdificatins t existing structures (beynd rutine repairs) remval f ld equipment refurbishment f existing equipment purchase f new r refurbished equipment t be installed installatin upfrnt payment f service cntracts (up t tw years) 10
Supprted Design & Cnstructin Activities purchase and installatin f metering equipment and/r data acquisitin system t facilitate participatin in MassCEC s Prductin Tracking System (see: http://www.masscec.cm/pts) cmmissining f the new systems MassCEC will nt fund rutine repair f existing equipment that is nt part f a cmprehensive rehabilitatin r upgrade prject. 5.3. Deliverables, Milestnes, and Payment Prcess Grantee may submit invices fr Grant Installments upn cmpletin f each f the Grant Payment Milestnes set frth belw. The deliverables required fr each prject milestne and subsequent payments are described in the Design & Cnstructin Task Order Template, Attachment 3: Milestne Checklists and Cnstructin Prject Descriptin Templates (the Task Order Template is Appendix B-2 f this Slicitatin). Failure t meet the milestne deadlines may result in rescissin f the award. Shrter timeframes are encuraged, and disbursements f the grant may be accelerated accrdingly. Payment is cntingent upn submissin t MassCEC f the required deliverables, which are subject t MassCEC review and apprval a signed invice frm the Grantee a cmpleted, signed Expenditure and Cst-Share Certificatin a cmpleted W-9 frm (with first invice nly). Grantee must maintain financial recrds relating t the receipt and expenditure f all funds related t the prject, including the required Cst Share, fr at least seven years fllwing prject final grant disbursement. These recrds may be audited at any time by MassCEC r its agents. Milestne Cmpletin f design, receipt f all significant permits and licenses; applicatin fr certificatin by the Lw Impact Hydrpwer Institute (except fr cnduit prjects) Design Milestne and Grant Installment Deadline fr Cmpletin 20 mnths frm effective date f grant agreement Maximum Grant Installment up t 100% f Design Grant The Milestne assciated with the Design Grant Installment requires that all significant pre-cnstructin permits (including amendments t FERC licenses) be received by the deadline. In additin, except fr cnduit prjects, an applicatin must be made fr certificatin by the Lw Impact Hydrpwer Institute (LIHI). Actual LIHI certificatin is nt required t receive the Design Grant Installment. Hwever, LIHI certificatin (fr nn-cnduit prjects) and MA RPS qualificatin are critical t receiving full cnstructin phase disbursements, as described belw. 11
Milestne 1. Site Preparatin, Financing and Equipment Order Deliverable and Invice; (including LIHI applicatin fr nn-cnduit Cnstructin-nly prjects) 2. Equipment Delivery and Installatin Deliverable and Invice 3. Cmmissining, Final Permitting (including MA RPS qualificatin), Reprt t PTS, Final Reprt and Final Invice Cnstructin Milestnes and Grant Installment Schedule Deadline fr Cmpletin Cnstructin-Only Prjects 6 mnths frm effective date f a Cnstructin-nly grant agreement Deadline fr Cmpletin Design & Cnstructin Prjects 24 mnths frm effective date f a Design & Cnstructin agreement Maximum Grant Installment Up t 30% f Cnstructin Grant, if MA RPS qualificatin btained r imminent; therwise, up t 15% f Cnstructin Grant N/A N/A Up t 85% f Cnstructin Grant, if MA RPS qualificatin btained r imminent, less previus amunts disbursed; therwise up t 42.5% f Cnstructin Grant 24 mnths frm effective date f a Cnstructin nly grant agreement* 36 mnths frm effective date f a Design & Cnstructin agreement* *Applicants may request lnger deadlines fr the final milestne, with justificatin prvided in the applicatin. Up t 100% f Cnstructin Grant, less previus amunts disbursed Fr nn-cnduit prjects, the maximum grant installments assciated with the first tw cnstructin milestnes depend n qualificatin fr the MA RPS: if qualificatin has been achieved r if the MA Department f Energy Resurces indicates that such qualificatin is imminent, a higher percentage f the grant is payable (subject t ther payment requirements); if MA RPS qualificatin has nt yet been achieved r is nt yet imminent, nly half the amunt is payable. Disbursement f the final installment requires that MA RPS qualificatin has been btained. If at any time after the cmpletin f the design phase the facility is rejected fr qualificatin by DOER r fr certificatin by LIHI, the Grantee must immediately prvide MassCEC ntice f such rejectin. The Grantee may then submit an invice fr reimbursement f csts incurred up until the date f the rejectin by DOER r LIHI, less the Grantee's cst share fr the cnstructin phase f the prject. N further reimbursements will be made under the Grant Agreement. Grantees are required t register their facilities in MassCEC s Prductin Tracking System ( PTS ), which is a digital database that tracks the prductin f renewable energy in Massachusetts, and t reprt generatin frm their cmpleted prjects t PTS n a mnthly basis fr at least five years. Please see Attachment 4 (Minimum Technical Requirements) f Appendix B-2 f this Slicitatin and http://www.masscec.cm/index.cfm/cd/fap/cdid/11539/pid/11151 fr mre infrmatin. MassCEC may request initial infrmatin t register a facility immediately upn grant executin, but in n case later than the final Cnstructin milestne package. As part f the final Cnstructin milestne, Grantees must successfully reprt system prductin t PTS. Grantees are advised t allw at least five weeks fr this prcess. Please pay careful attentin t the insurance requirements in the Sample Design & Cnstructin Task Order (see Appendix B-2). MassCEC may request evidence f the required insurance upn executin f the grant agreement r at any time thereafter. If a Grantee cmpletes any milestne fr less than the amunt that wuld be needed t request the Maximum Grant Installment fr that milestne, the excess grant funds may be rlled ver t a subsequent Grant Installment. Grantees will be accuntable fr the minimum cst share percentage identified in the 12
grant agreement. If ttal prject expenses are less than the amunt identified in the grant agreement budget, MassCEC and Grantee will share in any savings by maintaining the required cst share percentage set frth in the grant agreement. N grant funds may be used t reimburse r write dwn expenses incurred prir t the effective date f an agreement with MassCEC, nr may such expenses cunt tward the Grantee s share f csts. MassCEC reserves the right t re-evaluate the award amunt if the planned prject has undergne any changes. 6. Selectin Prcess and Criteria 6.1. Selectin Prcess Bth Feasibility Study and Design & Cnstructin prjects will be evaluated with respect t the criteria discussed in the next sectin. MassCEC reserves the right t reject withut further cnsideratin any applicatins that, in its sle judgment, fail t meet the threshld requirements. MassCEC staff may request supplemental infrmatin during the review prcess. MassCEC may als request an interview with qualified Applicants and/r a site visit. MassCEC may use a technical cnsultant r cnvene a panel f external reviewers t assist it in evaluating the applicatins. While applicatins will be accepted n a rlling basis, MassCEC reserves the right t make awards in an rder ther than that in which the applicatins were submitted; MassCEC may cmpare pending applicatins and make awards based n factrs including but nt limited t cst effectiveness (Grant$/kWh/yr), envirnmental issues, r schedule. MassCEC reserves the right t make n awards, t award less than the Applicant requests, and/r t award less than the maximum amunt f funds ptentially available thrugh this Slicitatin. 6.2. Selectin Criteria MassCEC reserves the right t cnsider nly applicatins that, in its sle judgment, meet the fllwing threshld criteria: The Applicant site meets minimum slicitatin requirements and guidelines (Sectin 3). Eligible Applicant and prject site cntrl requirements FERC status Facility size and lcatin Eligible technlgy The applicatin is cmplete and respnsive t the Slicitatin s requirements (including use f the applicatin templates prvided by MassCEC and adherence t submissin instructins). The applicatin includes all required attachments. The clarity, specificity, and cnsistency f the applicatin are sufficient t be deemed credible. The Applicant has prvided evidence f their cmmitment t the prject and has cmmitted t the cst-share requirements. Applicatins that meet threshld will be evaluated with respect t the fllwing: Criteria Prject Characteristics Sub-Criteria Descriptins f existing facility and prpsed prject are clear 13
Criteria Sub-Criteria Dam is in cmpliance with dam safety regulatins. MassCEC prefers prjects at facilities with n safety r ther deficiencies, and that are in gd cnditin Regulatry/licensing status is clearly explained and any new permits r amendments appear reasnable t btain RPS status and DFG utlk n LIHI certificatin are favrable Calculatins f incremental energy prduced are clear and welldcumented In additin, fr Design & Cnstructin prjects: Thrughness f prir feasibility analysis clearly addresses technical cnsideratins estimate f increased generatin calculated in accrdance with the methdlgy utlined in Appendix D (fr grant requests less than $75,000, an Applicant is nt required t fllw the Appendix D methdlgy fr its estimate f increased generatin) eclgical impacts (psitive r negative), such as effects n stream flw, impact n upstream r dwnstream habitat, effects n resident r migrating fish, eels and ther species regulatry and permitting issues such as 401 Water Quality Certificatin, FERC licensing, lcal wetlands bylaws prject financing and financial feasibility Risks t cmpleting the prject are mdest and plans t mitigate thse risks are identified Prject Prgrammatic Benefits Quantity f incremental energy and RECs prduced, and any ther energy benefits t the Cmmnwealth f Massachusetts are clearly stated Timeframe t cmpletin is within three years The prject ffers direct ecnmic benefits thrugh tax payments t Massachusetts gvernmental entities, leases t Massachusetts prperty wners, increased cnstructin r peratin jbs fr Massachusetts residents, r increased ecnmic activity fr Massachusetts firms, and such benefits are quantified Scpe f Wrk, Status and Schedule Wrk plan is clear and lgical Schedule is reasnable fr scpe f prject and meets Slicitatin requirements Budget is cnsistent with cmpetitive prcurement f gds and services Team is qualified t execute the remainder f the prject In additin, fr Design & Cnstructin prjects: Plan and schedule fr financing ther rehab needs, if nt part f this 14
Criteria Sub-Criteria prject, are identified Financial Request Grant request cmplies with Sectin 4.1 fr Feasibility Studies r Sectin 5.1 fr Cnstructin Prjects. Cst share percentage prvided by the Applicant meets r exceeds required minimum. Fr Cnstructin prjects: Applicant demnstrates the financial need fr the amunt requested specifically, hw the requested grant enables the prpsed prject t meet the Applicant s financial threshld. 7. Applicatin Prcess 7.1. Applicatin Frms Applicants must cmplete and submit a frmal applicatin fr either a Feasibility Study grant r a Design & Cnstructin grant. A separate applicatin must be submitted fr each prpsed prject. Applicants may nt apply fr bth a Feasibility Study grant and a Design & Cnstructin grant fr the same prject simultaneusly. The dwnladable applicatin frms fr each type f grant are in Frm B (FS) and Frm B (D&C), respectively. Applicants fr Cnstructin-Only grants shuld use Frm B (D&C). The Standard Budget Frms fr all types f applicatins are cntained in Frm C. Feasibility Study Applicants shuld demnstrate that sme pre-feasibility wrk has already been dne t assess the pprtunity, understand technical and ecnmic issues assciated with the prject, and identify ptential fatal flaws. Unless the facility is already MA RPS-qualified, Applicants will need evidence f a cnsultatin with the MA Divisin f Fisheries and Wildlife (DFW) regarding 1) ptential eclgical cncerns with the facility and the prpsed prject, and 2) issues that shuld be addressed in the Feasibility Study. A letter frm DFW is required. Cntact: Dr. Caleb Slater, 508-389-6331 r caleb.slater@state.ma.us Design & Cnstructin Applicants are expected t have cmpleted a thrugh feasibility study (which des nt need t have been funded by MassCEC r its predecessr). The feasibility analysis shuld prvide substantive technical, eclgical, regulatry and ecnmic detail as well as demnstrate a thrugh understanding f risks t timely prject cmpletin and related mitigatin measures. The applicatin must demnstrate a firm cmmitment frm all partners invlved in the prject. Unless the facility is already MA RPS-qualified, the Applicant must include a letter frm DFW that lists cncerns that may affect LIHI certificatin; the letter may als ffer ptential slutins t thse cncerns. If pssible, the letter shuld ffer a nn-binding pinin as t whether (r under what cnditins) DFW wuld ppse LIHI certificatin. Cntact: Dr. Caleb Slater, 508-389-6331 r caleb.slater@state.ma.us Please allw plenty f time t discuss yur prject with DFG and ptentially revise yur plans prir t requesting a letter and preparing yur MassCEC applicatin. MassCEC recmmends that Applicants carefully fllw instructins and prepare cmplete, clear, and cncise applicatins. It is the sle respnsibility f the Applicant t ensure that the applicatin is cmplete, meets minimum threshld requirements and is prperly submitted t MassCEC. MassCEC reserves the right t cnsider nly applicatins that, in its sle judgment, meet the minimum threshld and submissin requirements. 7.2. Authrized Respndents Signature and Acceptance Frm A certificatin must be included in the applicatin, indicating cmpliance with the terms, cnditins and specificatins cntained in this slicitatin. By executing the enclsed Authrized Applicant s Signature and Acceptance Frm (Frm A), the Applicant will have satisfied this requirement. 15
Any and all data, materials and dcumentatin prperly submitted t MassCEC in respnse t this slicitatin shall becme MassCEC s prperty and shall be subject t public disclsure under the Massachusetts Public Recrds Act. In this regard, PLEASE NOTE: By executing the Authrized Applicant s Signature and Acceptance Frm and submitting a respnse t this slicitatin, Applicants certify that they (1) acknwledge and understand the prcedures fr handling materials submitted t MassCEC as set frth in Sectin 8.1, (2) agree t be bund by thse prcedures, and (3) agree that MassCEC shall nt be liable under any circumstances fr the disclsure f any materials submitted t MassCEC pursuant t this slicitatin r upn the Applicant s selectin as an awardee. 7.3. Applicatin Package The applicatin package must be submitted in bth hard cpy and electrnically, as fllws: Tw bund, duble-sided cpies (n three-ring binders) f the signed Authrized Applicant s Signature and Acceptance Statement (Frm A), Applicatin Frm (Frm B (FS) r B (D&C)) and attachments, and the relevant sectins f Frm C (budget). Please number all pages cnsecutively and use sectin dividers if yu have lengthy attachments. The hard cpies must be sent t: Cmmnwealth Hydr Slicitatin N. 2016-CH-R7 Massachusetts Clean Energy Center 63 Franklin Street, 3 rd Flr Bstn, MA 02110 Electrnic cpies f all the materials listed abve. The budget frm (relevant sectins f Frm C) shuld be prvided as a separate, functinal Excel file. Fr Design & Cnstructin applicatins, the mdel fr estimating annual incremental generatin shuld als be prvided as a functinal Excel file. Fr Feasibility applicatins, the Feasibility Study utline shuld be in an editable Wrd dcument. All ther materials can be in Wrd r PDF frmat. Please d nt submit mre than six electrnic files; yu may cmbine multiple attachments int a single electrnic file. The electrnic files may be submitted n a disk r USB device alng with the hard cpies, r emailed t abarad@masscec.cm. 7.4. Applicatin Timeframe The schedule fr the Rund 6 Slicitatin is utlined in the table belw. Slicitatin Psted December 11, 2015 Deadline fr Written Questins Nne Applicatins Accepted n a Rlling Basis Thrugh March 11, 2016 Estimated Review Perid Varies with cmplexity f applicatin and need fr site visit. Target timeframes: Feasibility Study: Less than 6 weeks Cnstructin: Less than 10 weeks 7.5. Questins Questins cncerning this Slicitatin shuld be submitted by email t Amy Barad at abarad@masscec.cm. All inquiries shuld reference the Slicitatin. MassCEC prvides a link n the web page (Cmmnwealth Hydr) t a listing f all questins and answers. MassCEC will peridically update this listing and Applicants are encuraged t visit the website fr updates prir t submitting a questin. Only answers psted n the web site shuld be treated as MassCEC s fficial respnse t any questin. 16
8. General Cnditins 8.1. Ntice f Public Disclsure and Open Checkbk As a public entity, MassCEC is subject t Massachusetts Public Recrds Law, cdified at Chapter 66 f the Massachusetts General Laws ( Public Recrds Law ). Applicant acknwledges and agrees that any dcumentary material, data, r ther infrmatin submitted t MassCEC are presumed t be public recrds. An exemptin t the Public Recrds Law may apply t certain recrds, including materials that fall under certain categries under a statutry r cmmn law exemptin, including the limited exemptin at Massachusetts General Laws Chapter 23J, Sectin 2(k) regarding certain types f cnfidential infrmatin submitted t MassCEC by an applicant fr any frm f assistance. By submissin f an applicatin, Applicant acknwledges and agrees that MassCEC, in its sle discretin, shall determine whether any particular dcument, material, data r ther infrmatin is exempt frm r subject t public disclsure. Thus, MassCEC urges Applicant t carefully cnsider what dcuments, materials, data and ther infrmatin is submitted t MassCEC in cnnectin with this Slicitatin. In line with Public Recrds Law requirements, MassCEC generally cnsiders the fllwing types f infrmatin as cnfidential: The financial terms cntained in leases, pwer r REC purchase agreements, r service cntracts with ther parties Prject pr-frmas and statements f financial threshlds Intellectual prperty Persnal infrmatin (Scial Security numbers shuld NOT be prvided t MassCEC) Applicant agrees and acknwledges that MassCEC shall have the right t disclse the name f Grantee the amunt f the payment under the Task Order and any ther infrmatin it may deem reasnably necessary n Open Checkbk, the Cmmnwealth f Massachusetts nline database f state spending. 8.2. Cntractual Requirements Fllwing annuncement f a Grant Award, MassCEC intends t enter int an agreement with the selected Applicants cntaining certain standard prvisins (the Agreement ). MassCEC reserves the right t amend the Agreement withut further issuance f anther slicitatin. The Agreement cnsists f tw parts, the General Terms and Cnditins (included as Appendix A f this slicitatin), which are the legal terms that will gvern the award, and a Task Order. The General Terms and Cnditins are designed t be executed nce by an awardee and are nt intended t be specific t an award made under this slicitatin. Upn MassCEC authrizatin t prceed with an award, MassCEC and the awardee will execute a Task Order that will set frth the respective rles and respnsibilities f the parties specifically as they relate t the prject that is the subject f the award under this slicitatin. Applicants shuld review bth the General Terms and Cnditins (Appendix A) befre signing the Authrized Applicant s Signature and Acceptance Statement (Frm A). 8.3. Waiver Authrity MassCEC reserves the right, at its sle discretin, t waive minr irregularities in submittal requirements, t request mdificatins f the applicatin, t accept r reject any r all applicatins received, and/r t cancel r mdify all r part f this slicitatin at any time prir t awards. 17
8.4. Disclaimer This slicitatin des nt cmmit MassCEC t award any funds, pay any csts incurred in preparing an applicatin, r prcure r cntract fr services r supplies. MassCEC reserves the right t accept r reject any r all applicatins received, negtiate with all qualified Applicants, cancel r mdify the slicitatin in part r in its entirety, change the applicatin guidelines, make n awards, award less than the Applicant requests and/r award less than the maximum amunt f funds ptentially available thrugh this slicitatin, when it is in its best interest. 8.5. Grant Taxability Grants may be cnsidered taxable incme by the U.S. Internal Revenue Service and the Massachusetts Department f Revenue. All parties are strngly encuraged t cnsult with a tax prfessinal t determine the federal and/r state tax implicatins f receipt f a grant. MassCEC will issue a Frm 1099 t each Grantee wh receives funds. Therefre, MassCEC will need t receive a cmpleted W-9 Frm frm each Grantee prir t the remittance f any grant payment. A template W-9 Frm and instructins will be prvided fr the Grantee t cmplete and return t MassCEC s finance department. 8.6. Changes/Amendments t Slicitatin This slicitatin has been distributed electrnically using MassCEC s website. It is the respnsibility f Applicants t check MassCEC s website fr any addenda r mdificatins t a slicitatin t which they intend t respnd. MassCEC, the Cmmnwealth f Massachusetts, and its subdivisins accept n liability and will prvide n accmmdatin t Applicants wh submit an applicatin based n an ut-fdate slicitatin dcument. 18