renewable resources comm. renewable energy feasibility...
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Renewable Resources Comm. Renewable Energy Feasibility Fund
http://oregon.gov/ENERGY/RENEW/CREF.shtml[4/14/2009 1:34:10 PM]
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Comm. Renewable Energy Feasibility Fund
Background
Program Objectives
Eligibility
Funding
How and when to apply
Selection Criteria
Awards and Fund Disbursement
Study Ownership
Resources
Question and Comments
Background
The Oregon Department of Energy (ODOE) in coordination with the Oregon Department of Justice (DOJ)is directed by a Governor's Executive Order to establish the Community Renewable Energy Feasibility(CREF) program to support feasibility studies for "community renewable energy projects." The fundingfor this program has been made available to ODOE from the DOJ. The funds were obtained by the DOJin settlements with Reliant Energy Inc. on claims arising out of the West Coast energy crisis of 2000and 2001. The CREF fund will be similar to the Renewable Energy Feasibility Fund (REF fund) administered by theOregon Economic and Community Development Department (“OECDD”) but with broader eligibilitycriteria than the REF fund, including the ability to fund feasibility studies for private-sector entities. TheCREF fund will utilize funds on a revolving basis, such that funding awarded to projects that aredeveloped will be repaid by the developer and reallocated to future studies.
Program Objectives
The CREF fund has been established to support feasibility studies for community renewable energyprojects and to encourage widespread development and utilization of Oregon’s many renewable energyresources. Our objective is to reduce Oregon's dependence on fossil-based energy sources and topromote sustainable economic development for communities throughout the state. By offering supportto promising development projects early in the feasibility assessment, the CREF program will promotesound financial and engineering analysis for project development. The Program will minimize thefinancial insecurity faced by project developers who may be reluctant to invest in a feasibility study. CREF awards will not have to be re-paid if the project is not determined to be feasible. What is a “feasibility study?” A feasibility study for the purposes of the CREF program is an analytical tool that assists in determiningthe viability of a “community renewable energy project.” The study should entail a comprehensiveanalysis that provides the necessary information to determine if a development project is viable. Itshould evaluate all aspects of the project that together determine if the expectations of the project arelikely to be met.
Department
Renewable Resources Comm. Renewable Energy Feasibility Fund
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What type of feasibility study is eligible for funding?Studies must be focused on developing a renewable energy construction project for the purpose ofgenerating electricity, heat and/or fuel. Projects that would qualify as “Renewable Resource Project”under Oregon’s Business Energy Tax Credit (BETC) or State Energy Loan Program (SELP) may beconsidered for CREF funds. For electricity production, studies are limited to development projects thataim for capacity of more than 25kW and a maximum of 10MW. For heat and/or fuel generationprojects, eligibility will be determined on a case by case basis with an emphasis on small-scaleproduction. Further, the developer must be willing and committed to developing the construction projectwhen it is appropriate to do so. May “demonstration” projects or R&D projects qualify for the CREF Fund?It is unlikely that pilot demonstration and/or R&D projects will qualify for funding under the CREFprogram. Preference will be given to projects with a high likelihood of being developed as constructionprojects. This criterion will favor feasibility studies that incorporate technologies with a demonstratedmaturity in the marketplace or can provide definitive proof of commercial viability.
Eligibility
CREF program funds may be made available to any entity in Oregon that seeks funding for a feasibilitystudy for a renewable energy project that will benefit Oregon energy consumers and communities.Eligibility is not limited by utility service territory. Entities eligible for CREF program awards mayinclude but are not limited to:
Privately-owned, for-profit entitiesNon-profit corporationsSchoolsSpecial districts, e.g., as listed in ORS Chapter 198State agencies including agencies of higher educationCouncils of governmentRegional entities such as MetroTribes
Municipal entities are eligible to apply for CREF funds, however applicants may be directed to theRenewable Energy Feasibility (REF) program administered by the OECDD. The REF program provides asimilar funding structure to CREF but is targeted to renewable energy feasibility studies performed formunicipally owned projects.
Funding
Limited funds will be made available on a competitive basis. There is currently a total of $500,000 tobe allocated over a five year period with reimbursement payments to be added to the fund fromsuccessful development projects. Program application cycles will be announced twice annually. Theamount of funding available for each application cycle will be determined by ODOE. Is this a grant or a loan?Award monies shall be disbursed from the CREF Program and administered via contract between theaward recipient and ODOE. Although the awards under the Program shall not be designated as loans,the Program shall incorporate a mechanism for recovering funds from successful development projects. Award recipients that ultimately develop an energy project, the feasibility of which was evaluated withmonies through the CREF program, will be required to repay the CREF Program award. The terms ofpotential award re-payments will be established in the contract between ODOE and the awardrecipients. Is there a funding limit for a feasibility study?Yes. The maximum award amount is $50,000 per study. Is there a cost sharing requirement?Yes. The applicant must provide a minimum of 25 percent of the total study costs. If the applicantsecures federal funds, such as grants from USDA or US DOE, or other sources of funding, these may beapplied to the total cost share of the applicant. Funds the applicant obtains from other State of Oregon
Renewable Resources Comm. Renewable Energy Feasibility Fund
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agencies shall not be counted toward the 25% minimum cost share. Do “in-kind” goods and/or services qualify for cost sharing?Yes. “In-kind” contributions, such as consulting services, equipment, supplies, etc., that are needed toconduct the study may qualify for up to half of the applicant’s cost sharing requirement. This does notinclude project overhead costs, such as grant writing costs, contract administration, fringe benefits,office overhead, etc. ODOE will determine what qualifies as “in-kind” support as part of the applicationreview process.
How and when to apply
The first round of CREF applications are currently under review. We have received 31 applicationsunder the Request for Proposals (RFP) that closed at 5:00 PST on October 24th, 2008. We expect tohave two rounds of funding in 2009. Future RFP’s will be announced on this website and on the Oregon Procurement Information Network(ORPIN). Those seeking consideration for a CREF award must submit a proposal meeting the programrequirements. Future RFPs may be viewed and downloaded on the Oregon Department of Energy jobsWeb page. The time line and application details will be made available on this web site during eachfunding round. If you wish to be added to an email notification list concerning CREF activities please contactthe program coordinator via email.
Selection Criteria
An Evaluation Committee comprised of a cross-section of state agency staff and external partners willrank the proposals based on the combined merits of each application relative to the pool of applicationsreceived. The Evaluation Committee will consider a number of factors in making ranking decisions.These criteria may include but are not limited to:
Quality of project and likelihood to lead to construction.Potential energy and/or environmental benefitPotential cost benefitEconomic development potential, e.g., impacts on jobs and revenueCreation of new or enhanced infrastructure to support business and community developmentClearly defined deliverables and outcomesViability of proposed technology solutionLikelihood of project to satisfy BETC criteria, assuming project is feasibleDemonstrated capability of project teamDemonstrated need, e.g., preference to rural and distressed communitiesAmount of funding request (preference is to maximize the number of studies)Nature of project (preference is to maximize the overall diversity of projects)Clear and direct benefit to local communityAvailability of state funds to make awards
The Evaluation Committee reserves the right to recommend a downward adjustment to an awardamount relative to an applicant’s request to better fulfill the mission of the CREF fund. In theseinstances, the committee and/or ODOE staff will work with the applicant to determine how to conductthe study with the adjusted award amount.
Awards and Fund Disbursement
Process and expected turn-around time for issuing awards The approximate timeframe for the CREF fund process is as follows:
Abstracts Full Proposal Review Awards/Contracts
Renewable Resources Comm. Renewable Energy Feasibility Fund
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Month 1 Month 2 Month 3-4 Month 4
As part of the abstract and proposal process, ODOE staff and the Evaluation Committee may requestadditional information from applicants. Under normal circumstances, awards will be announcedapproximately 45 days from the full proposal due date, and award recipients will be invited to enter intocontractual agreement with ODOE. The contract process varies in length depending on the nature of theproject, parties involved, competing demands on ODOE staff, etc., but the goal is to commence projectsas soon as possible following the award announcements. How will the money be disbursed?Funds will be disbursed only after a contract is executed between the award recipient and ODOE. Thespecific terms will be included in the financing contract.
Study Ownership
Who will own the end product of the feasibility study?The award recipient will own the study; however, ODOE will be given a copy of the final report and anyrequested work products as well as full, access to the study and any analysis performed to completethe study. Work products that are created using CREF funds are subject to public information laws.Provisions may be included to protect intellectual property rights, on a case-by-case basis. What happens if a feasible project is not developed by the award recipient?The award recipient will have a limited right of first refusal to use the results of the study for projectdevelopment. However, once the time for such first refusal right expires, if an award recipient does notproceed with development of the project, ODOE may make the results of the study available to anyentity with an interest in developing the project.
Resources
OECDD REF Fund Business Energy Tax Credit (BETC) Program State Energy Loan Program (SELP) Governor's Executive Order 06-02 (PDF) Department of Justice Client Trust Account (ORS180.200) USDA Farm Bill, Section 9006: Renewable Energy and Energy Efficiency Program Senate Bill 838
Question and Comments
Question and comments can be directed to: Feasibility Program CoordinatorNabeel Al-RawiPhone: 503-378-8607Toll free within Oregon: 1-800-221-8035Fax: [email protected]
Renewable Resources Comm. Renewable Energy Feasibility Fund
http://oregon.gov/ENERGY/RENEW/CREF.shtml[4/14/2009 1:34:10 PM]
Page updated: January 26, 2009
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