Alternative Energy Master Plan Kickapoo Mud Creek Nature
Transcription
Alternative Energy Master Plan Kickapoo Mud Creek Nature
Alternative Energy Master Plan for the Kickapoo Mud Creek Nature Conservancy Oregon, Illinois for Greene & Proppe Design, Inc. February 5, 2003 Revised November 17, 2003 Weber Consultants, Ltd. 4201 North Ravenswood, 102 Chicago, IL 60613 I. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Public Utility Regulatory Policy Act (PURPA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 II. Solar Photovoltaics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 III. Wind Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Noise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 IV. Active Solar Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 V. Passive Solar Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 VI. Ground-Coupled Heat Pumps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 VII. Electricity Source and Generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Electric utility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Domestic usage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 VIII. Propane Source and Generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 IX. Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Utility incentives-net metering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Local or state incentive programs for wind energy investments . . . . . . . . . . . . . . . . . . 10 Utility interface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 X. DOE-2 Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 XI. Solar Photovoltaics Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 XII. Solar Thermal Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 XIII. Mass Wall Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 XIV. Wind Energy Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 List of Appendices Appendix A. Solar Photovoltaic Equipment Appendix B. Solar Thermal Equipment Appendix C. Wind Equipment Appendix D. HVAC Equipment Appendix E. DOE-2 Output Appendix F. F-Chart Solar Thermal Output Appendix G. F-Chart Mass Wall Appendix H. PV F-Chart Appendix I. Wind CAD Performance Appendix J. Com Ed Interconnection Guidelines Appendix K. Com Ed Pricing Experiment Appendix L. Com Ed Wind/Photo Application Appendix M. Com Ed Rider 4 Appendix N. Illinois Rebate Program Appendix O. Clean Energy Trust I. Introduction Several of the goals of the Kickapoo Mud Creek Conservatory are to foster an awareness of alternative energy systems and to demonstrate their viability. Weber Consultants was retained to help determine an efficient combination of these systems and provide engineering documents for their successful construction and operation. Background Before 1973, the production and use of energy was garnered little national attention as supplies were plentiful and immediate, while prices were reasonable. The Arab oil embargo changed that as prices rose quickly and supplies became seemingly scarce. In fact, the supply problems were a result of inadequate distribution, not overall quantity, but the lesson was learned as many withstood long lines at gas pumps to keep their gas tanks full. Studies estimating world oil supplies became common, and a new type of political map showing the world as oil producers and consumers showed the United States as the world’s top oil consumer, and the Middle East as the top producer. Public Utility Regulatory Policy Act (PURPA) Public Utility Regulatory Policy Act was passed in 1978, in the midst of the energy crises that ripped through industrial world economies. Faced with predictions that the price of oil would rise to $100 a barrel, Congress acted to reduce dependence on foreign oil, to promote alternative energy sources and energy efficiency, and to diversify the electric power industry. One of the most important effects of the law was to create a market for power from non-utility power producers, which now provide 7 percent of the country's power. Before PURPA, only utilities could own and operate electric generating plants. PURPA required utilities to buy power from independent companies that could produce power for less than what it would have cost for the utility to generate the power, called the "avoided cost." PURPA has been the most effective single measure in promoting renewable energy. Some credit the law with bringing on line over 12,000 megawatts of non-hydro renewable generation capacity. PURPA is the only existing federal law that requires competition in the utility industry and the only law that encourages renewables.1 The Energy Policy Act of 1992 This Act encouraged wholesale power competition, energy efficiency, and conversation, and recent rules by the Federal Energy Regulatory Commission (FERC) opened up transmission lines to all generators equally. 1 Union of Concerned Scientists, 10.26.02 Page 1 II. Solar Photovoltaics Photovoltaic (or PV) systems convert light energy into electricity. The term "photo" is a stem from the Greek "phos," which means "light." "Volt" is named for Alessandro Volta (1745-1827), a pioneer in the study of electricity. Most commonly known as "solar cells," the simplest systems power many of the small calculators and wrist watches we use every day. More complicated systems provide electricity for pumping water, powering communications equipment, and even lighting our homes and running our appliances. In a surprising number of cases, PV power is the cheapest form of electricity for performing these tasks. 2 Types Two general types of photovoltaic systems are battery-backup and net-metering. Battery backup The battery backup system is comprised of the photovoltaic panel array, inverter/charger, and battery banks. See Appendix A for typical panels and inverter equipment. These systems can be designed to provide a relatively high proportion of the electrical demand since the generation of power and its use do not have to be concurrent. They are often designed to be “off-grid”, meaning they have no connection to a local utility. These systems may be backed up, during stretches of no insolation, with fuel-fired generators. Net metering Net-metering systems utilize the array and inverter, but have no battery banks for electrical storage. These systems are connected to a local electric utility grid, and a special electric meter records the amount of electricity consumed by the user and sold back to the utility. Typically these systems provide a smaller proportion of the electric needs of the user since the generation and use of electric are not concurrent. However, the unused electricity gets sold back to the utility, which helps to make the economics of these systems more attractive. See Appendix J, “ComEd’s Interconnection Guidelines for Wind and Photovoltaic Generation Systems,” for details on connecting to the grid. III. Wind Power Man has harnessed wind energy for at least 4,000 years. About 1,400 years ago, Persians were using wind energy to grind grain, and by the 1800s, there were an estimated 500,000 windmills in Europe and China. In 1930 more than 600,000 windmills were at work in the U.S. and Canada, pumping water and producing electricity. Technological advances in windmill design and construction have made the production of electricity through wind power a highly efficient and economical process as well as the world’’s 2 US Department of Energy, 2003 Page 2 fastest growing form of electricity production. Nothing is burned or "used up" to produce wind power. Therefore, using wind power in place of coal, natural gas, oil or uranium conserves these resources and avoids the environmental impacts that often results from their use, and lessens our dependence on foreign sources of energy. Modern wind turbines have a three-blade rotor assembly that is connected by a main shaft to a gearbox and electrical generator. The wind turbine generator transforms and maintains the rotor speed needed to efficiently produce electrical power at different wind speeds. The turbine rests on top of a conical steel tower. The turbines also contain various electrical and mechanical equipment and a modern computerized system for operation and control. Electricity from the wind is clean, renewable and inexhaustible. Wind power does not create hazardous waste and does not produce carbon dioxide or other greenhouse gases. Noise Much of the noise emitted by the turbines is masked by the ambient or background noise of the wind itself, and noise of all kinds falls off sharply with distance. As blade airfoils have become more efficient, more of the wind is converted into rotational torque and less into acoustic noise. Typically, except very near the source, people out of doors cannot detect the presence of low frequency noise from a wind turbine. Types Similar to photovoltaic systems, the two general types of wind systems are battery-backup and net-metering. Battery backup The battery backup system is comprised of the wind generator, inverter/charger, and battery banks. These systems can be designed to provide a relatively high proportion of the electrical demand since the generation of power and its use do not have to be concurrent. They are often designed to be “off-grid”, meaning they have no connection to a local utility. These systems may be backed up, during stretches of no insolation, with fuel-fired generators. Net metering Net-metering systems utilize the generator and inverter, but have no battery banks for electrical storage. These systems are connected to a local electric utility grid, and a special electric meter records the amount of electricity consumed by the user and sold back to the utility. Typically these systems provide a smaller proportion of the electric needs of the user since the generation and use of electric are not concurrent. However, the unused electricity gets sold back to the utility, which helps to make the economics of these systems more attractive. Page 3 IV. Active Solar Energy The solar energy industry in this country is well developed and there are many different types of systems. In general, all systems utilize solar collectors to absorb the radiant portion of solar energy and transfer the heat to a fluid, either air or water. The fluid is then stored in tanks for water systems or passed through dense media, such as rock beds, for air systems. Types Air systems are used mainly for space heating and have inherent advantages over water systems since these heat the medium directly, are not subject to freezing in cold climates, and are generally simpler in design. They do require large amounts of heat storage, and they can significantly affect architectural design. Water-based solar energy systems are used for both space and domestic water heating, and are much more widely used. Compared to air systems, water systems are much more compact because water is a good conductor and has a high heat storage capacity. Water systems used for space heating utilize solar collectors, storage tanks, electronic controls, and air handler coils that transfer the heat of the water to the air. For radiant panel heating systems, the heated water is sent directly to the floor coils. Water systems for domestic water heating are classified as open or closed systems. In open systems, the potable water is sent directly to the collector, is heated, and returns to the potable system for consumption. In these systems, all waterways need to be approved for potable use by local building codes. Copper piping and collector waterways are usually used. Open systems are highly efficient but are used mainly in climates not subject to freezing. In marginal climates, where freezing infrequently occurs, these systems are often designed with freeze-protection valves or circuitry. Closed systems operate with the potable water separated from the heat transfer fluid in the collector piping. These systems are suitable for freezing climates since the collector fluid is usually a mix of water and antifreeze. A double-walled heat exchanger safely transfers heat from the collector piping loop to the potable water loop. These systems are more expensive than open systems because of the two separate piping loops, but in freezing climates these are a good alternative. Systems are also classified as active or passive, and open systems can be either. Closed systems are almost always active. Passive systems rely on roof mounted water storage tanks that are integrated with the collectors. Potable water is piped to the roof tank where the heating action of the integral collector siphons the water from the tank, heats it, and returns it to the tank. These systems are exceptionally simple and require no electrical energy input, which is important in areas subject to frequent power outages. They are large however, and require Page 4 some structural considerations for roof design. Equipment Solar collector panels Flat plate collectors dominate the market for solar heating, and produce water temperatures up to 212 degrees. The majority of panels utilize copper absorber plates with integral copper waterways, selective black coatings to enhance solar absorption, iron-free glass covers, and insulated aluminum frames. Appendix B shows a typical collector. For higher temperature heating, concentrating collectors utilize curved reflecting surfaces to concentrate the solar energy on evacuated tubes containing pressurized water. Temperatures up to 400 degrees and more can be achieved by these collectors. Because they collect at higher temperatures, they also are less efficient than low temperature flat plate absorbers. At the other extreme, flat plate collectors for swimming pools produce hot water in the 80 to 100 degree Fahrenheit range which is very efficient and well suited for heating swimming pools. These collectors do not need insulating covers or evacuated tubes since they operate at such low temperatures. Heat storage Water is the most widely used heat storage medium because as mentioned earlier, it has a high specific heat, is a good conductor of heat, and is inexpensive. Materials with high specific heats allow greater heat storage densities. For example, rock has a specific heat about one-fifth that of water, so for a given volume, water will store five times as much heat as rock. In solar heating systems, the water is simply stored in insulated tanks Controls The efficiency of a heating system depends on the reliability and accuracy of the control system. In a typical system, a controller compares sensor temperatures at the storage tank against the temperature at the solar panel surface. If the panel is 10 degrees warmer than the tank, the controller will turn on a pump (or pumps) and circulate the cooler tank water to the collector. V. Passive Solar Energy Allowing sun to enter via south facing glass and collecting it in massive interior elements presents the simplest and most thermodynamically efficient method for providing heat to buildings. System efficiencies are always highest when the heat is produced at or near the temperatures at which it will be used. The mass elements which provide aid passive heating also provide passive cooling. Interior Page 5 massive elements store and give up solar radiation in daily cycles. For example, throughout a 24 hour period, the interior surface of a passive element, such as a trombe wall, has an interior surface temperature that varies with time of day. Properly designed, the surface temperatures would peak in the night and morning hours when heat is needed, and recede during the hotter afternoon and early evening periods. Types The interior mass wall, often called a Trombe wall after its French inventor, has a south-facing glazing installed in front of it. The darkened mass surface collects the solar radiation directly at temperatures up to about 150 degrees Fahrenheit. Vents are sometimes placed low and high in the wall to aid the process and increase heat transfer to the wall. The heat transfers through the wall and heats the room by radiation and natural convection. The time delay for this transfer is on the order of 6 to 12 hours, so the maximum heating effect occurs in the evening and night. An 8 inch thick wall has a time lag of about 7 hours, and sees a temperature swing of about 40 degrees. The thickness of wall, independent of climate, that reduces conventional fuel usage the most is 12 inches, but the most cost-effective walls may be as thin as 8 inches. 3 Equipment The only equipment required for a trombe wall is the masonry wall itself and a good quality glazing. The glass should let in as much of the incoming solar radiation ( have a high transmittance) and block as much of the escaping heat as possible from the wall. Dual glazing with argon-filled cavities is a good choice; adding additional panes increases the insulation value of the glass but reduces the transmittance, and single glazed glass loses too much heat. Providing moveable insulation on the south glass, in the form of insulating blinds or other coverings, does increase the overall performance of the wall system, but daily operation of the coverings is required, and the cost can be prohibitive. VI. Ground-Coupled Heat Pumps Heat pumps are air conditioners that also work in reverse. In the summer, the outdoor condensing unit of a heat pump rejects heat to the outdoors, the same as an air conditioner. But in the winter, a reversing valve in the heat pump redirects the flow of refrigerant so that the outdoor condensing unit absorbs heat from the outdoors and rejects it to the building. Appendix D shows equipment typically used for these applications. 3 Engineer’s Guide to Solar Energy, Howell and Bereny, Solar Energy Information Services, 1979 Page 6 Heat pumps which rely on air for heat rejection and collection become very inefficient in the heating mode below 45 degrees Fahrenheit. Ground-coupled water-source heat pumps, on the other hand, rely on soil or underground water for a relatively constant temperature heat sink. Since underground temperatures range from about 45 to 65 degrees, heat pumps can operate very efficiently throughout the year. Ground coupled heat pumps can have yearly coefficients of performance (COP) in the range of 3.0 to 3.5. Standard air-source heat pumps would have COPs at best, of about 3, and during the heating season, COPs can go as low as 1. Types Soil loops consist of 400 to 500 feet of plastic tubing per ton of air conditioning. Buried 4 to 6 feet deep, they take advantage of the mass and constant temperature of the sub-surface soils. An antifreeze solution is circulated through the pipes, picking up warmth from the soil in the winter time, and rejecting heat from the house to the cool soil in the summertime. Ground water source heat pumps circulate lake water or well water through the heat pump’s heat exchanger to accomplish the same process as ground-coupled heat pumps. These systems are more efficient than ground-coupled heat pumps, but the expense of drilling a well often outweighs the benefits of greater efficiency. Refrigerants are used in this process to reject and absorb heat. Many manufacturers now use refrigerants that have no ozone depletion potential and no global warming effect. With the addition of a heat exchanger, a heat pump can also be used to heat domestic hot water. Compared to typical electric resistance water heaters, heat pumps operate for about onethird the cost. VII. Electricity Source and Generation Nationally, the US consumes 190 quads (quadrillion BTUs) of energy each year, of which 55% is electrically produced. The major uses for electricity are 28% industrial and process, 35% commercial, and 37% residential. 4 The majority of electricity, 60%, in this country is produced by coal-fired plants. Nuclear plants produce 20%, hydroelectric power comprises 5%, and 14% is produced from natural gas. About 1% is produced by alternative sources such as solar photovoltaics and wind. Through 2025, coal and natural gas for electricity generation are expected to rise, while nuclear and renewables are expected to remain flat. Electric utility 4 US Energy Outlook, 2001. Page 7 Commonwealth Edison recently merged with PECO energy of Pennsylvania to become Exelon Corporation. Exelon serves Oregon and most of northern Illinois. This utility has the highest nuclear generating rate, 60%, of any utility in the country. Current residential electric rates are $0.08275 per for the first 400 KWHR per month September through May, $0.06208 for each KWHR thereafter in those months, and $0.08275 for all KWHRs June through August. Higher rates are charged during the peak summer months in part because of the higher cost of generating peak electricity with standby natural gas generating facilities. Domestic usage A typical home uses 1200 kilowatt-hours (KWHR) of electricity per month. Water heating comprises 15% of the use, air conditioning uses 25%; lighting takes up 25%, and cooking and cleaning consumes the remaining 35%. The national average for the cost of this electricity is $0.07 per KWHR, or a little over $1000 per year. VIII. Propane Source and Generation Propane, the most common liquefied petroleum gas (LP-gas), supplies about 4 percent of our total energy needs. Propane is used by approximately 8.1 million households, with 5% using propane as their main heating source. Propane exists as a liquid and a gas. At atmospheric pressure and temperatures above -44 F, it is a non-toxic, colorless and odorless gas. Just as with natural gas, an identifying odor is added so it can be readily detected. When contained in an approved cylinder or tank, propane exists as a liquid and vapor. The vapor is released from the container as a clean-burning fuel gas. Propane is 270 times more compact as a liquid than as a gas, making it economical to store and transport as a liquid. Approximately 90 percent of the United States' propane supply is produced domestically, while 70 percent of the remaining supply is imported from Canada and Mexico. Propane is an approved, alternative clean fuel listed in the 1990 Clean Air Act, as well as the National Energy Policy Act of 1992.5 Propane in the Oregon area is supplied by several private firms that also supply propane tanks. Contracts are signed for the delivery of propane and rental of equipment. Current cost of propane is about $1 per gallon. IX. Incentives Utility incentives-net metering 5 National Propane Gas Association, 2003 Page 8 Illinois does not have a net metering law. However, the largest utility in the state – Exelon, which serves Chicago and portions of Northern Illinois – is making net metering available to its customers on an experimental basis. Appendix K, Com Ed Pricing Experiment, and Appendix M, Rider 4, provide more information on the current program. ComEd’s program will offer net metering to customers with solar and wind energy facilities sized 40 kW or less, operating in parallel with the ComEd system. To qualify for net metering, the generating facility must use an inverter that is listed under Underwriters Laboratories (UL) 1741 and it must be installed by a licensed electrician. Because of certain implementation issues unique to Illinois, ComEd’s net metering program is somewhat more complicated than most other states. ComEd initially pays the customer for energy delivered back to the utility at the lower "avoided cost" price. To make up for the difference between the avoided cost and retail prices, the utility makes an annual "participation payment" to the customer, which is determined by taking the difference between the average retail price and the average avoided cost price per kilowatt-hour, and paying the customer this difference in price times the number of kilowatt-hours delivered to the utility during the year, up to the total amount of energy supplied by ComEd to the customer during the year. Because this approach also requires dual meters, ComEd has agreed to pay the cost of installing and reading the additional metering equipment that is needed. Another potential concern about ComEd’s net metering program is that the term of the net metering agreement is only five years. After the five-year period, the metering arrangement may revert to a conventional dual-metering approach with payments at avoided cost. Illinois has not enacted any statewide requirements for interconnection of renewable energy systems, other than standards established under the federal PURPA law. As noted above, Commonwealth Edison’s net metering agreement specifies that generating facilities must use an inverter listed per Underwriters Laboratories (UL) 1741. It also requires systems over 25 kilowatts to be inspected and tested by ComEd to its satisfaction. Commonwealth Edison has developed a relatively simple, user-friendly, five-page interconnection agreement for customers participating in its net metering program. See Appendix J. With the exception of ComEd’s program, we are unaware of any efforts to develop simplified interconnection agreements for wind energy facilities. This means that wind system owners are likely to be subject to a utility’s existing interconnection requirements for "qualifying facilities" under the federal PURPA law.6 Local or state incentive programs for wind energy investments 6 Environmental Law and Policy Center of the Midwest, 2003 Page 9 The Renewable Energy Resources Program expects to award up to $2.5 million for renewable energy projects in Illinois. Through the program, maximum grants for PV systems are 50% up to a maximum of $5 per watt with a maximum grant of $150,000. Wind systems are eligible for a 50% grant up to a maximum of $2 per watt and $50,000. The Illinois Department of Commerce and Community Affairs administers the program. Information on this program is in Appendix N. Briefly, the grant program is open to units of state an local governments, associations, public and private schools, not-for-profit organizations, private companies, and individuals located within the state of Illinois. Photovoltaic systems must have been in operation successfully for one or more years and be rated to produce in excess of 2 kilowatts of electricity, and wind energy systems must be installed after 1998, rated by the American Wind Energy Association, and be able to produce at 10 or more KW. Residential sized solar thermal energy systems are not eligible. The Illinois Clean Energy Community Trust is a new $250 million foundation established to encourage the development of energy efficiency and renewable energy in Illinois. For more information, see Appendix O. Illinois offers a Special Assessment for Renewable Energy Systems. This statute allows for a special assessment of wind energy systems for property tax purposes. This allows solar and wind energy systems to be valued at no more than a conventional energy system. Utility interface There are specific interconnection guidelines for connecting PV (and wind) systems to the electric grid. In ComEd’s generation area, the following rules for connection to the grid apply: !Systems must comply with all applicable codes and regulations !PV systems must not affect the quality, reliability, or safety of ComEd’s system !PV systems must automatically disconnect from ComEd’s system when ComEd’s source is lost !A disconnect switch, accessible to ComEd with a ComEd lock on it, must be provided !Wiring and metering must be installed per ComEd guidelines if the customer wishes to receive compensation for excess energy transferred back to the grid !Interconnection to the grid, or parallel operation, must be approved prior to operation. More information is provided in Appendix J, “ComEd’s Interconnection Guidelines for Wind and Photovoltaic Systems”. Page 10 ComEd’s specific rules for PV and wind generation pricing are covered in Appendix K, “The Wind and Photovoltaic Generation Pricing Experiment”. Interconnected customers with qualifying systems sell back electricity at rates covered in ComEd’s Rider 4, which is shown in Appendix M. X. DOE-2 Analysis DOE-2 is a widely used and accepted building energy analysis program that can predict the energy use and cost for many types of buildings. DOE-2 uses a description of the building layout, constructions, usage, conditioning systems (lighting, HVAC, etc.) and utility rates provided by the user, along with detailed weather data, to perform an hour-by-hour annual simulation of the building and to estimate utility bills. It was developed by the US Department of Energy and the Lawrence Berkeley Labs and has become the national standard for modeling systems and energy use in buildings. For the analysis of the Kickapoo Residence, we created three distinct thermal zones- the sun space with mass wall, the bedrooms behind the mass wall, and the open, west facing living space. The starting point for construction assemblies included exterior walls insulated to R21, a roof insulated to R38, concrete mass floor with R11 edge insulation, dual glazed windows, and an 8" thick mass wall. Additional programming included south facing overhangs, a west deciduous tree-line that shades the west facade in the summer months, and a 30 degree orientation west of south. The base case analysis, shown in Appendix E, included these features plus a high efficiency propane furnace, high efficiency air conditioner, and a propane water heater. The second analysis changed only one factor, the orientation. We ran the building with a due south orientation to determine the effect of this change. In the third analysis we changed dual glazing to triple glazing on all windows except the south mass wall. We left the mass wall glass as is because the additional pane of glass reduces solar transmittance, and on the mass wall we want to maximize transmittance. Using the base case as a starting point, the fourth analysis kept all variables the same except the HVAC and water heater, which were modeled as water source heat pumps. To gauge the effect of a more massive interior wall, we changed the thickness to 12", again Page 11 leaving the other variables the same. The following table shows the annual fuel usages ( KWHR for electricity and gallons for propane) and costs under each alternative. Appendix E shows the output of each alternative in greater detail. Metered Total Alternative Resource Energy Charge($) Rate Basecase Electricity 10084 920 $.0912/KWHR LPG 1520 1520 $1.00/ gallon Total $2440 Electricity 9952 909 $.0912/KWHR LPG 1503 1503 $1.00/ gallon Total $2412 Electricity 10206 930 $.0912/KWHR LPG 1514 1514 $1.00/ gallon Total $2444 34867 2971 Due South Triple Glass Heat pump Electricity LPG 12" Masswall $.0912/KWHR $1.00/ gallon Total $2971 Electricity 10068 919 $.0912/KWHR LPG 1501 1501 $1.00/ gallon Total $2419 The second alternative shows that the effect of a 30 degree west of south orientation is minimal. Alternative 5 shows that the effect of changing the thickness of the masswall is also minimal. The most efficient combination would a due south orientation with a 12" masswall, but the increase would be minimal. A somewhat counter-intuitive result occurred with Alternative 3. The expected result of changing to better insulating glass would be lower energy costs. I’ve checked the input and output to verify its accuracy, so the program seems to be indicating that the west, south, and east glass a more sensitive to transmittance than insulating value. In a high mass interior, this seems reasonable. We were expecting better performance from the heat pump and heat pump water heater combination versus the propane furnace and water heater. The 20% higher energy costs were disappointing, but ComEd’s rates are higher than the national average. Even with the high Page 12 efficiencies of water source heat pumps, propane is still relatively inexpensive to make the gasfueled system perform better. Recommendations Of the above alternatives, the base case gives the best combination of performance and cost. The heat pump system costs more to operate and has higher initial costs compared to high efficiency propane furnaces and air conditioners. XI. Solar Photovoltaics Analysis For this analysis we used the PV F-Chart program developed by Klein and Beckman at the University of Wisconsin. It provides long-term average performance estimates for photovoltaic systems having utility feedback capability, battery storage, or stand-alone systems having neither utility feedback nor battery storage capacity. In all three system configurations, power conditioning equipment maintains the array output at its maximum power point and supplies the proper voltages and current to the other equipment. The user supplies the monthly-average hourly load on the system. Power generated above that needed to supply the load must be fed back to the utility, stored in a battery for use at a later time, or dissipated, depending on the system configuration. Energy required by the load that is not supplied by the system must be obtained from an auxiliary source. Output runs from this program are shown in Appendix H. Utilizing a 30 degree slope from horizontal and a 30 orientation west of south had little effect on the output of the 10 panel array. Ideally, due south is the best orientation and 40 degrees is the best tilt angle, but it is difficult to make these conditions work architecturally. Utilizing 16 panels (220 square feet) The output shows an annual contribution of about 56% toward the annual electricity consumption. Overall, the net present value of the installation is negative, even considering the tax credit. But simulation also shows that about 2800 excess annual kilowatthours could be sold back to the utility. Even though the house will be occupied only one week per month, the system will continue to produce electricity whether there is a demand for it or not. Recommendations We feel that the analysis is conservative in its estimate of life cycle costs, however even with a rebate, the system won’t provide positive cash flows over the life cycle of the system. This analysis does not take into account the many non-economic benefits of employing a nonpolluting, renewable source of energy. Those have to be factored in, just as the economic parameters are, to make a final determination of value and viability. XII. Solar Thermal Analysis For this analysis we used the F-Chart program also developed by Klein and Beckman at the University of Wisconsin. Output runs from this program are shown in Appendix F. Page 13 The program provides monthly-average performance estimates for each hour of the day. The calculations are based upon methods developed at the University of Wisconsin which use solar radiation utilizability to account for statistical variation of radiation and the load. The program is able to run simulations of active solar and space heating systems using water and rock bed storage, and also passive direct gain, passive mass storage, and pool heating systems. We ran the analysis using the same tilt and orientation parameters as for the PV system, and used a 40 gallon per day hot water heating load. Single glazed flat plate collectors, each with 32 square feet of surface area, as shown in Appendix B, were used. The analysis was run with one, two and three panels, and corresponding water storage of 2 gallons per square foot of collector area. The best performance was obtained with two panels, which corresponded to an average yearly contribution of 71%. Three panels produced a higher annual output, but overproduced in the summer months, resulting in wasted capacity. The parametric chart in Appendix F, showing number of panels vs solar fraction and life-cycle savings, has life cycle savings peaking at 2 panels. Recommendations The economics summary shows a life cycle savings of $777 on an initial investment of $3700. Since pricing came in for the system, the initial investment required went up substantially, to about $9000. And unlike the solar photovoltaic system which will produce power for sell-back even when the house is unoccupied, the solar hot water system will not. When there is no hot water load, the system goes unused. On the one hand, an intermittent occupancy schedule helps the economics of the PV system, but seriously hinders the economics of the solar hot water system. Despite the proven reliability of solar water heating systems and their usually good economics, in this case the low cost propane water heater operating under very little annual load shows the best life-cycle costs. XIII. Mass Wall Analysis For this analysis we also used the F-Chart program also developed by Klein and Beckman at the University of Wisconsin. Output runs from this program are shown in Appendix G. Based on a 425 square foot mass wall, dual glazed glass, and a cost of $10 per square foot for the wall, the life cycle savings were $5702. With triple glazed glass, and an additional cost of $850, the life cycle savings were $4247. Recommendations Properly designed passive solar features usually represent excellent investments because they Page 14 are extremely simple, have no maintenance, and are very efficient. The occupancy schedule does not affect the performance of the mass wall since the house will require at least minimal heating throughout the winter, whether occupied or not. XIV. Wind Energy Analysis For this analysis we used the WindCad Turbine Performance Model developed by Bergey Windpower. Appendix I details the input and results of the programs. The inputs to this model include tower height, site altitude, average wind speeds for the area, turbulence factors, and wind shear exponents. We ran the model with both a 24 meter and 37 meter tower height. Since wind speed increases with height above the earth’s surface, the taller the tower, the better. Utilizing a turbine with an output of 10 kw, a 24 meter tower, and an installed cost of $35000, the program estimated an annual output of 11,255 KWHR. The economic analysis shows a 30 year cash flow of $9352, with breakeven occurring at year 25. Utilizing the same turbine, but with a 37 meter tower, and an installed cost of $37,100, the program estimated an annual output of 13,168 KWHR. The economic analysis shows a 30 year cash flow of $14,929, and a breakeven occurring at year 23. This particular system size is eligible for a State rebate, but neither of these analyses assume it. Also not a part of the analysis is the sell-back of electricity to ComEd . For the 37 meter tower and turbine, a 60% rebate would accelerate the breakeven point to year 14. Recommendations In northern Illinois, average wind speeds tend to subside in the summer months. Solar photovoltaic systems produce their greatest output in the summer months, and the two systems complement each other quite well. Modern wind generators are very efficient and reliable, and the economics are attractive for alternative energy systems. As with the PV system, even though the house will be occupied only one week per month, the system will continue to produce electricity (and meter it for resale to the utility) whether there is a demand for it or not. Page 15 WIND/PHOTOVOLTAIC GENERATOR APPLICATION The following information is required by ComEd for approval of the Customer’s Wind or Photovoltaic generating system (40 kW or less) to operate in parallel with the ComEd system: Section 1: Customer Information Applicant’s Name Address: Street State City Daytime Phone: ( Zip Code Evening Phone: ( ) ) Mailing Address (if different than above): Address: Street State City Zip Code Section 2: Description of the Facility Location of Facility: (address) Separate Manual Utility Accessible Disconnect – Location: Wind Photovoltaic Type of Facility: (check one) Principal Components: and/or Photovoltaic Panel Manufacturer & Model: Wind Turbine/Generator Manufacturer & Model: Inverter/Generator Serial Number: or Inverter Power Rating: Generator Nameplate Capacity (in kilowatts, AC): Inverter Protection Setpoints: Overvoltage (59): Undervoltage(27): Over/Under Frequency (81): Proposed Interchange Meter Location on Building: Outside North Outside South (check one) Outside East Outside West Other The generating facility’s inverter is listed per Underwriters Laboratories (UL) 1741, “Standard for Static Inverters and Charge Controllers for Use in Photovoltaic Power Systems”, and equipped with non-adjustable setpoints and utility interactive (non-islanding). Date: Equipment Vendor (signed): Company: Equipment Vendor (printed): Section 3: Installer Information Contractor #: Licensed Electrician: Company: Mailing Address: State: City: Daytime Phone: ( ) Page 1 of 2 Zip Code: The generating facility has been installed in compliance with the current version of IEEE 929, “Recommended Practice for Utility Interface of Photovoltaic (PV) Systems”; “ComEd’s Interconnection Guidelines for Photovoltaic and Wind Power Systems”; and with all applicable requirements of the National Electric Code and the local governing building and electrical codes. Date Installed: Electrician (signed): Section 4: Certifications The system has been installed to my satisfaction and I have been given system warranty information and an operating manual, and have been instructed in the operation of the system. I certify that the above information is true and correct to the best of my knowledge. Furthermore, I certify that in no event will ownership (as identified below) of these generation facilities by any electric utility, electric utility holding company, or any combination thereof exceed fifty (50) percent of the equity interest in the facilities. I have also identified any owner holding an equity interest in the facilities of 10 percent or more. Ownership (Please state all owners, including % ownership) Date: Signed (Owner): Section 5: Utility Information (To Be Filled Out By ComEd) ComEd Transformer (associated with Interchange Meter) location number : 1. ComEd Interchange Meter Number : 2. ComEd Feeder Number : 3. ComEd Customer Account Number: 4. Protection Test by (over 25 kVA): Test Date: 5. Approval Date: System Approved by: 6. Page 2 of 2 RENEWABLE ENERGY RESOURCES PROGRAM SOLAR THERMAL, PHOTOVOLTAIC, BIOMASS, WIND, and HYDROPOWER REQUEST FOR PROPOSALS GUIDELINES AND APPLICATION Fiscal Year 2004 Submittal Deadline 4:30 p.m. Monday, December 22, 2003 ILLINOIS DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY BUREAU OF ENERGY AND RECYCLING ALTERNATIVE ENERGY DEVELOPMENT SECTION 620 EAST ADAMS STREET SPRINGFIELD, ILLINOIS 62701 Rod R. Blagojevich Governor Jack Lavin Director SECTION 1 GENERAL INFORMATION 1.1 PURPOSE. The Illinois Department of Commerce and Economic Opportunity (the Department) administers the Renewable Energy Resources Program (RERP) in order to foster investment in and the development and use of renewable energy resources within the state of Illinois. The Department is interested, to the extent funds are available, in funding projects that demonstrate potential to increase the utilization of renewable energy technologies in Illinois. The focus of the RERP includes wind, solar thermal energy, photovoltaic systems, dedicated crops grown for energy production, organic waste biomass, hydropower that does not involve new construction or significant expansion of hydropower dams and biogas stationary fuel cells. Descriptions of eligible and ineligible projects are set forth in Section 2 of this RFP. 1.2 AUTHORITY. 20 ILCS 687, Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997, Article 6 Section 6-1 through 6-7, authorizes the Department to administer the state’s Renewable Energy Resources Program. 1.3 ANTICIPATED FUNDING. The Department expects to award up to $2.5 million under this solicitation. The Department may issue a subsequent solicitation in February 2004 if funding is available. Award decisions are at the sole discretion of the Department. 1.4 DEFINITIONS. The terms used in this document shall have the meanings set forth below. Words and terms not defined here, if defined in the Environmental Protection Act [415 ILCS 5], shall have the meanings as defined therein. "Act" means the Public Utilities Act. “Agricultural Residues” are organic wastes remaining from a plant crop, such as corn stover. "Applicant" means (i) an Illinois unit of state or local government, association, public or private school, college or university, (ii) a not-for-profit organization or private company licensed to transact business in Illinois or (iii) individual(s)proposing an renewable energy resources project in Illinois. “Applicant Investment” means the amount of funds to be contributed to the Project, including, but not limited to all personal contributions, other private financial partners or contributors, and any public funds received or anticipated to be received by the Applicant. "Application" means a request for program funds including the required information, forms and attachments as prescribed in this RFP. "Biogas" means a mixture of methane and carbon dioxide produced through bacterial action. "Dedicated Crop" means non-consumable crops grown specifically for energy production. “Entity” means any applicant submitting an application to the Department. “Fuel Cell” means a device without moving parts that uses the chemical energy in hydrogen and oxygen to produce electricity. "Grantee" means an Entity that has been awarded a grant. "Hydropower" means generating electricity by conversion of the energy of running water. “Installer” means a licensed, bonded, and insured contractor doing business within the state of Illinois. "Organic Waste Biogas" means methane produced by animal manures, municipal solid waste, and waste water sludge. "Organic Waste Biomass System" means any device designed to use biogas as a source of fuel to produce electricity or process heat. "Performance Period" means the length of time the Grantee is required to operate the Project and submit information/data to the Department. "Photovoltaic Cells and Panels" means semiconductor materials that convert sunlight directly to electricity. These components are part of a photovoltaic system. "Photovoltaic System" means a stationary ground, roof, or wall mounted system. Furthermore, a Photovoltaic System shall consist of Photovoltaic Cells and Panels, inverters, mounting systems, associated wiring, and devices used to protect the system. Batteries and other electrical storage devices are not included as part of the system and may not be used as a matching contribution on the part of the Grantee. “Project” means an eligible renewable energy resources project that the Department agrees to fund through an RERP grant. "Project Start Date" means the date that the Notice of Grant Award is signed by both the Grantee and the Department "Project Commencement Date" means the date that all necessary procurement is complete, equipment is installed and operational and all project tasks have commenced. The project commencement date may not exceed six months after the Project Start Date. "Proprietary, Privileged or Confidential Commercial Information" means any process or design exclusively owned under trademark, patent or in the process of becoming patented, or other information that falls within an applicable exemption under the Illinois Freedom of lnformation Act. "Solar Thermal Energy" means rooftop or ground-mounted panels to collect and transfer heat for space, water heating, and/or electric generation. "Wind" means the natural and perceptible movement of air parallel to or along the ground. 1.5 FREEDOM OF INFORMATION ACT/CONFIDENTIAL INFORMATION. Funded proposals are subject to disclosure, in response to requests received under provisions of the Freedom of Information Act (5 ILCS 140/1 et seq.). Information that could reasonably be considered to be proprietary, privileged or confidential commercial or financial information should be identified as such in the proposal. The Department will maintain the confidentiality of that information only to the extent permitted by law. If the applicant has a special need to maintain the confidentiality of proprietary or privileged information, please attach a supplemental letter of explanation. 1.6 PREVAILING WAGE REQUIREMENTS Recipients are responsible for determining if their projects will trigger compliance with the Illinois Prevailing Wage Act (820 ILCS 130/0.01). The Department will not render a legal opinion as to the applicability of the Prevailing Wage Act to any project. Questions regarding the applicability of Prevailing Wage requirements may be referred to the Illinois Department of Labor at (312) 793-2800 or (217) 782-6206. Attorney General Opinion No. 00-018, which addresses applicability of Prevailing Wage requirements, may be accessed on the Attorney General’s web sit at www.ag.state.il.us/opinions/00-018.htm. 1.7 JOB CREATION/RETENTION REPORTING. Recipients will be required to submit reports documenting the number of jobs created, retained or lost during the course of the agreement term as a result of the Project. 1.8 ENVIRONMENTAL APPROVALS. Funded projects will be subject to review by the following Illinois agencies: departments of natural Resources, Historic Preservation, Agriculture, and the Illinois Environmental Protection Agency. Recipients will be required to comply with requirements established by said agencies relative to their respective reviews. Recipients will be responsible for coordinating directly with the applicable agencies. Any requirements communicated to the Department shall be incorporated into the incentive agreement awarded as of its execution date, or if received from the applicable agency subsequent to execution, as an addendum to the incentive agreement. Recipients will be contractually obligated to comply with such requirements. Prior to notification of compliance by the applicable agency, Recipients may request disbursement of funds only for the following purposes: administrative, contractual, legal, engineering or architectural/engineering costs incurred which are necessary to allow for compliance by the Recipient of requirements established by the external agency. Funds will not be disbursed for any activity that physically impacts the project site until the Department receives the appropriate sign-off from the applicable agencies. 1.9 REJECTION OF APPLICATIONS. The Department reserves the right to reject any proposal that does not comply with the requirements of these guidelines and approved program initiatives. Unsuccessful applicants who wish to discuss the evaluation of their proposal should submit a written request to this effect to the address listed in Section 4.1.1 The submission of a proposal under these guidelines confers no right upon any applicant. The Department is not obligated to award any grants under this program, to pay any costs incurred by the applicant in the preparation and submission of a proposal, or pay any grant-related costs incurred prior to the Project Start Date. SECTION 2 GRANT ELIGIBILITY CRITERIA 2.1 ILLINOIS LOCATION. Eligibility is limited to projects physically located in the state of Illinois. 2.2 CUSTOMER OF PARTICIPATING UTILITY REQUIREMENT. An applicant must be a customer within the service area of an investor-owned electric or gas utility or a municipal gas or electric utility or electric cooperative that imposes the Renewable Energy Resources and Coal Technology Development Assistance Charge as defined in 20 ILCS 687 Article 6. 2.3 ELIGIBLE PROJECTS. Eligibility is limited to Projects proposing (i) to use dedicated energy crops or agricultural residues to produce electricity, or (ii) to purchase and install renewable energy generation equipment of the following types: 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 Any new wind power system that is rated in accordance with the American Wind Energy Association (AWEA) criteria, has successfully completed at least one year of field-testing, and has a nameplate capacity of at least 5 kilowatts. Projects larger than 201 kW must have at least one year of professional meteorological data at the specific project site at the appropriate altitudes. Projects of up to 200 kW must have either site-specific data or otherwise justify the wind resource to the satisfaction of the Department. Any new photovoltaic power system that is Underwriters Laboratories (UL) listed or has successfully completed at least one year of field testing and has a rated design capacity of at least 2 kilowatts of electricity. Any new solar thermal water or space heating system that has been approved by the Solar Rating and Certification Corporation or a comparable organization and is designed to produce in excess of 10 kilowatts or equivalent or contains at least 200 square feet of collectors. Any new organic waste biomass system that has successfully completed at least one year of field-testing. The system must be designed to produce and/or use biogas as a source of fuel to produce electricity or heat. Any new hydropower system that will not involve new construction or significant expansion of hydropower dams. The Department will evaluate proposals on a case-by-case basis. Any new stationary fuel cell designed to use hydrogen produced from solar energy, wind, ethanol or biogas to produce electricity. 2.4 INELIGIBLE PROJECTS. The following projects are not eligible for funding under this RFP: Projects located outside the state of Illinois, geothermal energy systems, or energy projects involving the incineration, burning or heating of waste wood, tires, garbage, general household, institutional and commercial, industrial lunchroom or office waste, landscape waste, or construction or demolition debris. 2.5 MAXIMUM GRANT AMOUNTS; APPLICANT INVESTMENT. The maximum grant amounts available for each project category are listed below. The Department is not obligated to provide the maximum grant amount. This is a competitive solicitation for limited grant funds. Projects that are cost-effective, and have an Applicant Investment that exceeds the minimum requirement will receive additional consideration. Photovoltaic Systems Wind 5 kW to 200 kW Wind 201 kW to 2000 kW Dedicated Crops Grown for Energy Production and/or Agricultural Residues Solar Thermal Energy Organic Waste Biogas (Electrical Production) Organic Waste Biomass (Heat Production) Fuel Cell Hydropower 2.5.1 50 percent up to a maximum of $5.00 per watt with a maximum grant of $150,000 50 percent up to a maximum of $2.00 per watt with a maximum grant of $50,000 30 percent with a maximum grant of $500,000 50 percent with a maximum grant of $500,000 50 percent with a maximum grant of $150,000 50 percent with a maximum grant of $225,000 50 percent with a maximum grant of $150,000 25 percent with a maximum grant of $225,000 25 percent with a maximum grant of $350,000 PRIOR COSTS NOT ELIGIBLE. Costs incurred by an Applicant prior to the Project Start Date may not be applied against the Applicant Investment requirement. 2.5.2 2.6. ALLOWABLE EXPENDITURES. Grant funds may only be expended for actual eligible purchase and installation expenses for eligible equipment or for processes related to electrical generation from agricultural residues or dedicated energy crops. The Department reserves the right to review applications and negotiate lower grant amounts. ADDITIONAL REQUIREMENTS 2.6.1 License. An installer of the renewable energy system must be licensed to transact business in the state of Illinois and maintain appropriate types and levels of insurance coverage. SECTION 3 APPLICATION EVALUATION PROCESS 3.1 GENERAL EVALUATION. The Department will evaluate every timely submitted proposal in the following manner: Proposals will be evaluated (i) to determine whether the proposed project meets the project eligibility criteria specified in Section 2 of the RFP; and (ii) to determine whether, based on the information supplied in the application documentation, the proposal demonstrates sufficient likelihood of actual project development. Proposals satisfying requirements (i) and (ii) will be evaluated on the basis of the price and non-price evaluation criteria specified in Section 3.2 below. 3.2 EVALUATION CRITERIA. The Department shall utilize two evaluation categories of equal weighting: price considerations and non-price considerations. 3.2.1 Price – Projects shall be evaluated on the basis of the Department support requested as expressed in cents per kWh or cents per therm over the first two years of project operations, with a preference for smaller incentive payment requests per kWh, in order to better allow for the best leveraging of the limited funds available for the Program. 3.2.2 Non-Price – Projects shall be evaluated on the basis of non-price criteria, including relative economic development benefits and relative public education benefits, with a preference for: 3.2.2.1 3.2.2.2 3.2.2.3 3.2.2.4 3.2.2.5 3.2.2.6 Projects demonstrating a business model with market transformation potential. Projects with greater direct job creation impacts (direct temporary and permanent jobs related to the project). Projects with greater indirect job creation impacts (projects utilizing equipment suppliers with a greater business presence in the state of Illinois or projects supporting the local agricultural economy). Projects located in an area determined by the Department to have a greater relative need of economic development. Projects demonstrating the ability to achieve a Project Commencement date no later than December 31, 2004 . Projects providing public education benefits. SECTION 4 PROPOSAL DUE DATE AND SUBMITTAL REQUIREMENTS. 4.1 The Department must receive all proposals under this RFP on or by 4:30 p.m. December 22, 2003. Proposals received after this deadline will not be evaluated. 4.1.1 The Department will accept proposals at the following address: Illinois Department of Commerce and Economic Opportunity Bureau of Energy and Recycling Alternative energy Development Section 620 East Adams Street Springfield, IL 62701-1615 Attention: Rex Buhrmester 217/557-1925 TDD 800/785-6055 4.1.2 The Department will not accept faxed or electronically submitted proposals. 4.1.3 Required Information. Each proposal submitted under this RFP must include all of the information required in the proposal application documentation set forth in the Appendices of this RFP. SECTION 5 GRANT AGREEMENT 5.1 PAYMENT SCHEDULE. The grant agreement will specify the conditions of payment and the payment schedule. The Department reserves the right to determine the appropriate payment structure on a project specific basis. 5.2 REPORTING REQUIREMENTS/PROJECT MONITORING. Grantees will be required to submit monthly progress and expenditure reports in accordance with the requirements of the grant agreement. The Department reserves the right to structure reporting requirements on a project specific basis. The Department project manager will monitor the Grantee's compliance with the terms of the grant agreement. 5.3 GRANT DURATION/PERFORMANCE PERIOD. The grant term/performance period will be determined on a project specific basis. Grantees will be required to certify the project commencement date to the Department The Agreement may require up to 24 months of performance data following the Project Commencement Date. The Department will negotiate an incentive agreement with the successful applicant(s). 5.4 OWNERSHIP/USE OF EQUIPMENT. The grant agreement will specifically prohibit the sale, lease, transfer, assignment, or encumbrance of any equipment or material purchased with grant funds, without the express written approval of the Department for the duration of the grant term. In the event of a Grantee's failure to comply with this requirement, the agreement will provide that the Department may, at its discretion, require the Grantee to return all grant funds provided by the Department, require the Grantee to transfer to the state ownership of equipment and material purchased with grant funds and bar the Grantee from consideration for future funding. The Department reserves the right to require the Grantee to give it a purchase money security interest in equipment purchased with grant funds for the duration of the grant term. 5.5 DISSEMINATION OF INFORMATION/TECHNOLOGY TRANSFER. Grantees will be contractually required to allow the Department access to the project site and the ability to obtain, publish, disseminate or distribute any and all information obtained from the project (except any data or information that has been negotiated as being confidential or proprietary), without restriction and without payment or compensation by the Department. 5.6 STATE NOT LIABLE. Recipients shall hold the state of Illinois harmless from any and all claims, demands, and actions based upon or arising out of any services performed by recipients or by their agents or employees under a grant agreement. The Department, by entering into a grant agreement, does not pledge or promise to pledge the assets of the state nor does it promise to pay any compensation to the grant recipients from any moneys of the treasury or the state except such moneys as shall be appropriated and paid to the recipient by the Department. 5.7 INDEMNITY. The recipient agrees to assume all risks of loss and to indemnify and hold the Department, its officers, agents and employees, harmless from and against any and all liabilities, demands, claims, damages, suits, costs, fees, and expenses, incidents thereto, for injuries or death to persons and for loss of, damage to, or destruction of property because of the recipient's negligence, intentional acts or omissions. In the event of any demand or claim, the Department may elect to defend any such demand or claim against the Department and will be entitled to be paid by the recipient for all damages. 5.8 INSURANCE. The recipient shall provide Workers' Compensation Insurance or the same, as required, and shall accept full responsibility for the payment of Unemployment Insurance, premiums for Workers' Compensation, Social Security, and retirement and health insurance benefits, as well as all income tax deductions required by law for its employees who are performing services specified by the grant agreement. 2.10.4 Access - recipients shall permit any agent authorized by the Department, upon presentation of credentials, access to the renewable energy project site during normal business hours, for which a grant has been applied. 5.9 RETURN OF FUNDS. The recipient shall return to the Department any and all funds that are determined by the Department to have been spent in violation of the grant agreement. APPENDIX A: Application Cover Page Illinois Department of Commerce and Economic Opportunity Renewable Energy Resource Program Application for Grant Funding A.1 Owner Information __ _____ Name of Applicant (individual, governmental agency or organization) ___________ Street Address _ City E-Mail address ____ ______ State _____________ 9 digit Zip Code ________-_______-_______ ______-_____________ SSN (only if individual applicant) FEIN _____/ _____ Telephone Number ___________________________ County of Project ____________________________________________________________________________ Project Location/Address (if different from above) _________________________________ Project Manager/Contact Person _____/_____________ Telephone Number _____/______________ Fax Number -----------------------------------------------------------------------------------------------------------------------------A.2 Verification of Renewable Energy Resources and Coal Technology Development Assistance Charge must be provided. If the applicants electric or gas utility is listed below and if the applicant is a current customer of one of those utilities at the address indicated above, please provide a copy of a recent bill. If your utility is not listed below, or if you are a customer at a different address, please attach a letter from your utility stating that the applicant is serviced by an investor-owned/municipal gas or electric utility of electric cooperative that imposes the Renewable Energy Resources and coal Technology Development Assistance Charge as defined in Public Act 90-561. The Department will verify this information before issuing a grant to the applicant. FOR GAS DISTRIBUTION Central Illinois Light Company Ameren CIPS Consumers Gas Company Illinois Gas Company Illinois Power Company Alliant-Interstate Mid American Energy Company North Shore Gas Company Nicor Gas Company South Beloit Water, Gas, and Electricity Company The Peoples Gas, Light & Coke Company Ameren UE United Cities Gas Company FOR ELECTRIC DISTRIBUTION Central Illinois Light Company Ameren CIPS Commonwealth Edison Company Illinois Power Company Interstate Power Company Mid American Energy Company South Beloit Water, Gas and Electricity Company Ameren UE ------------------------------------------------------------------------------------------------------------------------------ APPENDIX A: (cont.) A.3. System Information ______________ Make ______________ Model ____________________ Date of purchase __ Warranty Period _____________________ System Size (Watts) ________________ Year of Manufacture __________________________ Date the system will be installed ____________________________________________________________________________ Name, Address, and Telephone Number of entity that performed or will perform the installation ____________________________________________________________________________ License number, proof of insurance, and bonding of the Installer ----------------------------------------------------------------------------------------------------------------------------A.4. Type of Project (Check the appropriate box for proposed project.) Solar Thermal Photovoltaic Cells and Panels Wind Organic Waste Biomass (Heat) Organic Waste Biomass (Electric) Dedicated Crops & Agricultural Residues Hydropower Fuel Cell ----------------------------------------------------------------------------------------------------------------------------A.5. Organization Legal Status Individual Corporation not providing or billing medical and/or health Owner of Sole Proprietorship care services Partnership Non resident alien individual Tax-exempt hospital or Estate or legal trust extended care facility Foreign corporation, partnership Governmental entity estate or trust Corporation providing or billing Other not-for-profit organization medical and/or health care services Other ----------------------------------------------------------------------------------------------------------------------------A.6. State Legislative Districts Senate District _______ Representative District _______ Congressional District _______ ----------------------------------------------------------------------------------------------------------------------------A.7. Financing Information A.7.1 Total grant amount request: $_____________ A.7.2 Total estimated energy production (kWh or therm) of the project over the first two years following the commencement date: _____________ A.7.3 The total value of the Department support request (A.7.1) divided by the estimated energy production (A.7.2), as expressed in cents per kWh or cents per therm: _____________ APPENDIX A: (cont.) A.7.4 Total Project Cost $______________ A.7.5 Total Applicant Investment (cash) $______________ A.7.6 Sum of Financial Partner Investments (cash) $______________ A.7.7 Sum of other Public Funds: $______________ A.7.8 Sum of all any other Investment sources: $______________ A.8. Applicant Certification. The applicant certifies that: It is not in violation of the prohibitions against bribery of any officer or employee of the state of Illinois as set forth in 30 ILCS 505/10.1. It has not been barred from contracting with a unit of state or local government as a result of a violation of Section 33E-3 or 33E-4 of the Criminal Code of 1961 (720 ILCS 5/33 E-3 and 5/33 E-4) It is not in violation of the Educational Loan Default Act (5 ILCS 5/33 E-3 and 5/33 E-4). As of the submittal date, the information provided in this application is accurate, and the individuals signing below are authorized to submit this application. Authority/Approvals - The recipient agrees that all authorizations required to perform the project have either been obtained or will be obtained no later than 60 days following the project start date set forth in the Notice of Grant Award issued by the Department. Legal Compliance – The recipient agrees that the project complies with all applicable state, federal and local environmental and zoning laws, ordinances and regulations and that all permits, licenses, etc., required to perform the project have either been obtained or will be obtained no later that 180 days following the project start date set forth in the Notice of Grant Award. ___________________________________ Authorized Official/Owner (signature) ___________________________________ Project Manager (signature) ___________________________________ Typed/Printed Name ___________________________________ Typed/Printed Name ___________________________________ Title Date ___________________________________ Title Date ___________________________________ e-mail address ___________________________________ e-mail address APPENDIX B Proposal Requirements RENEWABLE ENERGY GRANT APPLICATION DOCUMENTATION. All applicants shall include documentation of the following: B.1 History - a brief history of the applicant, including its legal organization. B.2 Narrative Description of the Project - including a summary description of the project and the components used, and the size of the system in terms of watts. B.3 Detailed Statement of Work - a description of proposed tasks and deliverables. B.4 Project Budget - all costs must be directly identifiable and eligible for grant reimbursement. Expenses must be documentable and traceable to the grant. See Appendix C for additional information. B.5 Pertinent Experience - a brief description outlining experience of the applicant or project manager. B.6 Proposed Project Timetable - the work program to be carried out under the grant must specify a timeline for major project milestones and activities including the anticipated start and end date of each activity. B.7 Merits – brief description of the merits of the project per the Evaluation Criteria as provided in Section 3.2, with a suggested maximum length of two pages. B.8 Name, address, license number, and proof of insurance, of the Installer. APPENDIX C Proposal Budget C.1 Summary of Budget Total Costs Applicant Contribution Contributions From Other Sources State Funding Requested A. Contractual Services _ _ ____ B. Equipment/Materials _ _ ____ C. Costs Associated With Agricultural Residues or Dedicated Crops _ _ ____ Total _ _ ____ Percent of Total C.2 ___100___ Contractual Services (List all subcontracts for design, construction, repair, or maintenance, and fees for legal, financial, artistic or other professional services. Subcontracts must be explained in detail and attached to the end of this section. Include license number and address) Total Costs 1. _____________________________________ $ ____________ $ ____________ 2. _____________________________________ $ ____________ $ ____________ 3. _____________________________________ $ ____________ $ ____________ 4. _____________________________________ $ ____________ $ ____________ 5. _____________________________________ $ ____________ $ ____________ 6. _____________________________________ $ ____________ $ ____________ 7. _____________________________________ $ ____________ $ ____________ SUBTOTAL $ ____________ $ ____________ APPENDIX C: (cont.) Proposal Budget C.3 Equipment/Materials (List all items of equipment to be purchased valued greater than $100.) State Total Funding Costs Requested 1. _____________________________________ $ ____________ $ ____________ 2. _____________________________________ $ ____________ $ ____________ 3. _____________________________________ $ ____________ $ ____________ 4. _____________________________________ $ ____________ $ ____________ 5. _____________________________________ $ ____________ $ ____________ 6. _____________________________________ $ ____________ $ ____________ SUBTOTAL C.4 $ ____________ $ ____________ Agricultural Residue and Dedicated Crops Total Costs State Funding Requested 1. _____________________________________ $ ____________ $ ____________ 2. _____________________________________ $ ____________ $ ____________ 3. _____________________________________ $ ____________ $ ____________ 4. _____________________________________ $ ____________ $ ____________ 5. _____________________________________ $ ____________ $ ____________ 6. _____________________________________ $ ____________ $ ____________ SUBTOTAL C. 5 $ ____________ $ ____________ Financial Partners and all Other Sources of Investment detail. Include phone number, contact person and address) Total Investment 1. _____________________________________ $ ____________ ______________________________________________ ______________________________________________ (Specify in reasonable 2. _____________________________________ $ ____________ ______________________________________________ ______________________________________________ 3. _____________________________________ $ ____________ ______________________________________________ ______________________________________________ 4. _____________________________________ $ ____________ ______________________________________________ ______________________________________________ ______________________________________________ SUBTOTAL $ ____________ Project Total $ ______________ State Funds Requested Total $ ______________ Attach addition budget pages if necessary C.6 Financial Partnerships and Other Investment Sources, Letter or Guidelines. Provide letters from each financial partner or funder indicating the amount of their support and the project commencement date expected for their participation. In the event of funding by private foundations or public sources, if such a letter is not yet available, indicate the anticipated source (USDA program name, etc.) and supporting documentation or guidelines for the anticipated source. 2003 Program Priorities and Grant Application Guidelines MISSION and PROGRAM AREAS The Illinois Clean Energy Community Foundation invests in clean energy development and land preservation efforts, working with communities and citizens to improve environmental quality in Illinois. The Foundation supports projects in three core program areas: improving energy efficiency, developing renewable energy resources and preserving and enhancing natural areas and wildlife habitat throughout the state. Check www.illinoiscleanenergy.org for Additional Information The Illinois Clean Energy Community Foundation's web site — www.illinoiscleanenergy.org — offers additional resources for organizations seeking funding, including lists of grants awarded previously, more information on the grant application process and announcements about new program initiatives that may be launched during 2003. GRANT APPLICATION PROCESS How to Apply for a Grant Submitting a letter of inquiry is the first step in the application process. The letter may be no longer than three pages. It must describe the proposed project, explain the need for the project and summarize the total project expenses and proposed sources of funding, including the specific amount requested from the Foundation. Following review of letters of inquiry, the Foundation will notify all applicants whether to submit a full proposal. When the Foundation invites a full proposal, it will specify what information the proposal should include and the supporting documents that must be submitted with the proposal. Eligible Applicants The Illinois Clean Energy Community Foundation provides funding to charitable (501c3) organizations, educational institutions and state and local government agencies serving Illinois residents. Ineligible Activities The Foundation will not provide funding for remediation of environmentally impaired properties; technology research; promotion of proprietary products; reoccurring operating costs; political campaigns or lobbying; capital campaigns or support for an organization's endowment; or projects undertaken by individuals. Deadlines and Decision Dates Letter of Inquiry Submitted for Full Proposals Invited Grant Decision Dates January 15, 2003 Deadline Mid-February 2003 Late April 2003 July 15, 2003 Deadline Mid-August 2003 Late October 2003 Rolling Review Within 1 month of receiving letter Within 1 month of receiving proposal GRANTS WITH JANUARY AND JULY APPLICATION DEADLINES Letters of inquiry for projects that fit within one of the program priorities stated below will be reviewed as a group in two competitive grant cycles during 2003: For the winter grant cycle, the deadline to submit a letter of inquiry is January 15. For the summer grant cycle, the deadline to submit a letter of inquiry is July 15. Energy Efficiency • Development of consumer demand for energy efficient products and technologies. • Energy efficiency technical assistance, outreach and/or demonstration projects serving a particular type of facility or sector. • Policy development and related activities to advance energy efficient building design and/or energy efficiency building codes. Renewable Energy • Development of consumer demand for clean renewable energy, including aggregation approaches. • Policy development and other activities to support growth in large-scale wind or solar power generation. • Demonstration projects and policy development leading to wider adoption of solar thermal, biomass, fuel cells or emerging renewable energy technologies. Natural Areas • Acquisition of high-value natural areas and wildlife habitat. • Planning efforts leading to acquisition of important natural areas. • Restoration of important natural areas by nonprofit organizations. • Building capacity of nonprofit organizations that acquire and manage natural areas, with annual operating budgets of up to $100,000. (Capacity-building grants are limited to no more than $40,000 over two years.) GRANTS THAT CAN BE APPLIED FOR ANYTIME DURING 2003 Letters of inquiry submitted for “rolling review” during 2003 must fit within one of the following program priorities: Energy Efficiency • Creating model energy efficient public buildings throughout Illinois. Nonprofit organizations and local or state government agencies may seek funding for the incremental costs of designing and/or commissioning new facilities to be highly energy efficient. • Advancing the adoption and implementation of, and compliance with, energy efficiency building codes. Individual cities and towns or groups of Illinois municipalities may request funding for staff training, community workshops and/or other activities related to energy efficiency building codes. Renewable Energy • Installing small-scale solar or wind power generation systems. Nonprofit organizations and local or state government agencies may apply for funding under the following formulas: for solar photovoltaic systems, $2,000 per kW up to 50kW per site; for small wind turbine systems, $500 per kW up to 20kW per site. Foundation funding for these systems will be limited such that no more than 80% of the total cost of a project is being provided by the Foundation and by government renewable energy funding programs. Nonprofit organizations and state or local government agencies with solar photovoltaic projects larger than 50kW or wind projects larger than 20kW may seek funding in the January or July competitive grant cycles. Illinois Clean Energy Community Foundation 2 N LaSalle St, Suite 950 Chicago IL 60602 312.372.5191 fax 312.372.5190