PRE-DEVELOPMENT QUESTIONS

February 8, 2005

 

Question

Answer

 

Can wind assessment data and draft ecological assessment data be provided under seal and not subject to FOIA disclosure in the Pre-Development application process?

 

 

Please mark all information that you believe to be confidential as such in your application.  Please note, however, that the ultimate determination of what constitutes confidential information exempt from FOIA requests belongs to us, as stated in the pre-development application.

 

 

Can you confirm that Pre-D loans are separate from the required grant to successful proposers under Project 100?

 

Yes. The Pre-Development Program is a separate initiative from Project 100. The Pre-Development Program seeks to support worthy projects at the pre-development stage of their evolution. Projects that have received funding from this initiative can apply for inclusion into Project 100, if they have progressed to the point where they meet the eligibility requirements for Project 100.  

 

 

Is a bilateral wholesale sale from a project owner to an electric utility considered to be a sale into the wholesale market for purposes of qualifying for Pre-D funds?

 

The intent on the Pre-Development Program is to support the development of renewable energy production facilities that sell at least 50% of its electricity into the New England wholesale electricity market with clearly identifiable benefits to Connecticut ratepayers.  Any pre-development renewable energy production project with (or seeking) a contract to sell its production under a bilateral wholesale electricity agreement would be challenged to show that at least 50% of their nameplate rated capacity and energy produced will be delivered to the New England wholesale electricity market for the clear benefit of Connecticut.

 

 

If a large project requested a small amount of Pre-D money, would the requirement to sell 50% of the RECs to Ct Utilities appply to the entire project or can a portion of the Project capacity (commesurate with the size of the loan) be dedicated to sale to the utilities?

 

 

The requirement to sell at least 50% of all REC’s would still apply to the entire project.  The objective of this program is to support projects providing power to the New England wholesale market and attributes into Connecticut.

 

 

 

Not sure if Maine biomass qualifies, but it might be worth a quick look. My quick look suggests that facilities have to come into operation after july 1, 2003, to qualify, which I imagines leaves the biomass facilities out.  But I wonder about landfill methane projects, for which there are two in the planning/development stage that would apparently qualify.  So then the big question is:  are out-of-state resources eligible?

 

 

The out-of-state landfill methane projects which are in the planning/development stage would qualify under the CCEF’s Pre-Development program. However, the expectation of this program is to encourage and give preferences to the development of these projects within the State of Connecticut. 

For out-of-state projects to be considered and funded by the CCEF, they would have to strongly demonstrate how they would benefit the ratepayers of Connecticut.

 

 

Although our project has a number of solid waste, emissions avoidance, forest lands protection and economic benefits accruing to Connecticut, it is located in western Massachusetts.  Are there any limitations on the amount of pre-development funds available for our project compared to a Connecticut project?

 

 

As stated in the Pre-Development Program “Call for Applications” up to  $250,000 per project is available for projects less than or equal to 5 MWs and up to $500,000 for projects greater than 5 MWs.  Given that the mission of CCEF is to invest in projects that benefit the ratepayers of Connecticut, such project will be evaluated on their ability to provide Connecticut ratepayers with a high level of benefits.

 

Is our project eligible for a CCEF Pre-Development award if we have previously received funding under the Massachusetts Renewable Energy Trust Pre-Development Financing Program?  The Massachusetts funding is supporting work in months 6-12 of the 24-30 month pre-construction period.  Significant pre-development work will remain after the Massachusetts-funded project is completed.  We plan to seek CCEF funding for a portion of this remaining work.

 

 

Certainly, other funding sources, previous, current or future, will be reviewed in the Pre-Development evaluation process.  CCEF will be looking to see what affect such funding has on projects meeting the Pre-Development evaluation criteria, including the benefits such projects bring to the Connecticut ratepayer.

 

What is the interest rate likely to be on loans awarded to projects in Cycles I and II?

 

 

The interest rate on Pre-Development awards for all cycles will be based on the published Prime Interest Rate, plus a risk premium encompassing a projects overall expectations to meet the goal and objectives of the Pre-Development Program.