Gap Grant Funding for Energy Efficiency and Clean Energy Projects At Drinking Water and Wastewater Facilities in Massachusetts

NOTICE OF INTENT (NOI) Gap Grant Funding for Energy Efficiency and Clean Energy Projects At Drinking Water and Wastewater Facilities in Massachusetts DEP-NOI-CERP-FY2018-05 COMMBUYS#: BD-18-1045-BWR00-BWR01-20572 October 5, 2017 INTRODUCTION Treating drinking water and wastewater consume a significant portion of the total electric usage by municipalities in Massachusetts.1 As large consumers of electricity, drinking water and wastewater treatment facilities represent attractive opportunities for clean energy projects, including both energy efficiency and renewable energy projects The Massachusetts Department of Environmental Protection (MassDEP) has been working since 2007 to identify and implement clean energy projects at these facilities in collaboration with many partners, including the Massachusetts Department of Energy Resources (DOER), the Massachusetts Clean Energy Center (MA CEC), the U.S Environmental Protection Agency (EPA), University of Massachusetts (Lowell and Amherst), and the electric and gas utilities The Massachusetts Clean Energy Results Program (CERP), a government-led energy and environmental partnership between the MassDEP, DOER and MA CEC, developed a streamlined “Gap Grant” program that helped municipalities reduce their operating costs, stimulate the local economy and improve the environment In 2014 Massachusetts awarded one million seven hundred thousand dollars ($1.7 million) in state “Gap Funding” to jump-start and implement thirty (30) clean energy projects at municipal drinking water and wastewater facilities across the Commonwealth In 2016, a cost-benefit analysis of the Massachusetts Gap Funding program was done in partnership with American Water Works Association (AWWA) and the Policy Navigation Group in Washington D.C This analysis showed that the Massachusetts investment of two million five hundred thousand dollars ($2.5 million) in energy efficiency projects (Gap Funding grants plus Mass Save® energy utility incentives) is expected to result in over forty million two hundred thousand dollars ($40.2 million) of public benefits over fifteen (15) years: yielding over thirty-one million dollars ($31 million) of energy savings for municipal water 1 Data from Massachusetts municipalities using MassEnergyInsight, an energy-tracking tool available at no-cost to all Massachusetts public entities indicates 25-33% of electric consumption from treating water and wastewater Percentage range reflects variations across years DEP-NOI-CERP-FY2018-05/COMMBUYS#: BD-18-1045-BWR00-BWR01-20572 1 facilities and over nine million dollars ($9 million) of public environmental benefits The projected benefit-cost ratio is over 15:1, meaning that more than $15 in public benefits will be achieved for every public dollar invested Additional information on the Clean Energy Results Program and the “Gap I Grants” can be found at: MassDEP Gap Grant Model While Massachusetts has seen many of its drinking water and wastewater facilities become energy leaders working towards clean energy goals, barriers remain that continue to make the implementation of clean energy projects challenging These barriers include operational and managerial needs to limit the number of funding and financing requests proposed to ratepayers Because each request for funding leads to the impression, and often the actuality, of rate increases, and because these requests must be approved through the annual municipal budget cycle, they are often limited Often, funding is only requested when an urgent need arises, such as an emergency, a state regulatory compliance requirement, or when large infrastructure improvements are needed The result is delayed implementation of clean energy projects, both large and small, until the time of a facility upgrade Small to medium efficiency projects in particular that are not able to be executed with operating funds, but do not warrant seeking stand-alone project financing, are often postponed and overlooked By delaying action, many drinking water and wastewater utilities have historically missed opportunities to regularly advance energy projects to reduce their energy use, operating costs, and carbon footprint In order to address these barriers, MassDEP and DOER have collaboratively created a grant opportunity to provide an additional round of Gap Funding to advance efficiency projects and install clean energy projects The program is designed to expedite implementation of previously assessed energy efficiency and clean energy generation projects By providing this “Gap II” funding, the goals of MassDEP and DOER are to: 1) Reduce facility energy and operating costs – thereby enabling drinking water and wastewater utilities to reinvest their annual cost savings back into their infrastructure and assets; 2) Continue the cost-effective and results based efficient Gap Funding grant model to leverage funding from multiple partners for clean energy project implementation; 3) Address the challenge of funding smaller efficiency and clean energy projects that have a cost too large to cover with an operating budget, but too small to warrant financing; and 4) Provide additional financial grant incentives for larger efficiency and clean energy projects that are cost effective PROGRAM OUTLINE To achieve the goals of this Program, MassDEP, with funding assistance from DOER, is making three million dollars ($3,000,000) in grant funds available for drinking water and wastewater facilities (public municipal, district, or authority) to assist with the implementation and completion of both energy efficiency and clean energy generation projects statewide This Program is designed to accomplish the following objectives: 1 Through a simple and streamlined online application process provide funding to expedite the DEP-NOI-CERP-FY2018-05/COMMBUYS#: BD-18-1045-BWR00-BWR01-20572 2 installation of clean energy and energy efficiency projects at drinking water and wastewater facilities; 2 Incentivize the direct investment in clean energy by municipal, district or authorities operating drinking water or wastewater facilities by awarding grant funding to lower operating costs and reduce their carbon footprint 3 Communicate project results through a public education and outreach component for each project to highlight the immediate and long-term benefits of energy management and sustainable water infrastructure Facility Eligibility Requirements • • • • Publicly-owned and contract-operated municipal facilities, districts or authorities - which are treating or pumping drinking water or wastewater - are eligible for Gap II funding The facility types listed above must submit a complete application “online” including all requested supporting documentation in the required file formats Districts or municipalities that wish to fund work at more than one facility should submit a single application that includes all projects For example, a district operating two independent drinking water treatment facilities with separate distribution systems should submit one application that includes all projects at both treatment facilities and distribution systems Private or commercial facilities are not eligible for this funding opportunity Project Eligibility Requirements • • Energy efficiency projects are eligible Renewable energy generation projects, including wind, solar photovoltaic (PV), in-conduit hydropower are eligible Note: Up to 200 kW maximum of solar photovoltaic (PV), at a facility-owned installation, is eligible Additional information on the Solar Massachusetts Renewable Target (SMART) Program MA Upcoming SMART Solar Incentive Program, and the current net metering cap allocations and remaining capacity for the electric utilities can be found at: MA System of Assurance of Net Metering Eligibility • • Renewable thermal energy projects, such as solar thermal, air or water-source heat pumps, are eligible Anaerobic Digestion and/or Combined Heat and Power owned by the municipal facilities, districts or authorities are eligible An eligible drinking water or wastewater facility must submit an application for identified energy efficiency and or clean energy measures The estimated energy and cost savings for all eligible projects must be quantified and documented by a previously completed energy assessment, energy audit, or technical evaluation This document must be submitted online with all other required application materials Examples of acceptable documentation include, but are not limited to, an energy assessment for efficiency measures, a technical study examining energy savings from adding variable frequency drives (VFDs) to pumps, or a feasibility study indicating potential for renewable energy generation This documentation must include the estimated total project costs and an estimate for potential energy savings or generation (expressed in kilowatt hours (kWh), therms, gallons, and monetary cost DEP-NOI-CERP-FY2018-05/COMMBUYS#: BD-18-1045-BWR00-BWR01-20572 3 savings, etc.) Before awarding Gap II grant funding, MassDEP must have a confirmation of the energy utility project’s financial incentives/contributions secured for the project (i.e., from Mass Save®, or a Municipal Light Plant) No awards will be made for energy assessments, technical evaluations or feasibility studies Engineering costs required to implement eligible projects can be included in the total project cost In-kind labor costs cannot be included, and cannot be counted as the required 10% minimum cost share contribution Grant awards will be distributed on a reimbursement basis, based on actual costs, and terms contained in the Standard Contract Form SELECTION OF AWARDEES Applications will be considered as follows: 1 Complete applications Only complete applications will be considered Any application not completed in its entirety, including all requested attachments in the specified file formats, will be rejected Applicants will be notified if their application is rejected There is no guarantee that notification will occur in time for a re-submission to be considered 2 The maximum total Gap II Grant available is $200,000 Please note that grant applications will be reviewed and awards made based on total project costs – with one funding track for smaller projects less than $100,000; and a second funding track for larger projects greater than $100,000 Funding request amounts should be determined after taking all other potential grants and incentives into account For anticipated funding sources such as other grants or loans, whether or not they have been secured, please note the application or decision date and include a copy of the application(s) decisions/awards for those grants and loans All clean renewable energy generation projects must be municipally-owned by the drinking water or wastewater facility; and all associated energy cost savings or revenues generated must directly benefit the facility’s ratepayers 3 Applicant Cost Share The required applicant cost share contribution is a minimum of 10% of the total adjusted project costs (total project costs – incentives = adjusted project costs x 10% minimum municipal cost share) The cost share contributed by the facility may include cash and borrowed funds but may not include other grants or Mass Save® incentives 4 Evaluation Criteria • Applications for total Gap II grant funding of less than $100,000 will be evaluated based on the following criteria: • Cost-effectiveness of MassDEP’s Gap II grant ($ grant invested/projected energy savings); • Total projected amount of energy savings (kWh, therms, gallons, etc.); • Energy utility incentives/contributions secured for the project (i.e Mass Save® and Municipal Light Plant (MLP) funding); • Estimated project completion date; and • Applicant’s cost share contribution above the required minimum • Applications for total Gap II grant funding for more than $100,000 will be evaluated on the following criteria: DEP-NOI-CERP-FY2018-05/COMMBUYS#: BD-18-1045-BWR00-BWR01-20572 4 • • • • • Cost-effectiveness of MassDEP’s Gap II grant ($ grant invested/projected energy savings); Total projected amount of energy savings (kWh, therms, gallons, etc.); Energy utility incentives/contributions secured for the project (i.e Mass Save® and Municipal Light Plant (MLP) funding); Estimated project completion date; and Applicant’s cost share contribution above the required minimum 5 Timely Submission of Application MassDEP will begin accepting all Applications (electronically), starting on November 6, 2017 continuing through November 24, 2017 Applications received after November 24, 2017 will not be eligible for consideration 6 Grant Awards All grant awards will be between MassDEP and the publicly-owned municipal facility, district or authority The scope and terms of the grant award agreement will be incorporated into a MassDEP Standard Contract Form and attachments Grant awards will be distributed on a reimbursement basis, based on actual costs and terms contained in the Standard Contract Form 7 Program Goals In the event that the total amount of funding requested exceeds the allocated three million dollars ($3,000,000) available, MassDEP reserves the right to allocate funding according to the relative number and size of all the applications received as well as the application of the project evaluation criteria noted above This is to ensure that the following goals of this program are achieved 1) Expedite installation of clean energy and energy efficiency projects at drinking water and wastewater facilities 2) Incentivize direct investment in clean energy by municipal, district or authorities operating drinking water or wastewater facilities by awarding grant funding to lower operating costs and reduce their carbon footprint 3) Complete public education and outreach components in each project to highlight the connection and importance between energy and water infrastructure, and raise awareness of the project’s benefits 8 Adjusting Awards MassDEP reserves the right to reduce or increase the awards based on total funding available, and applications received REQUIRED APPLICATION MATERIALS TO BE SUBMITTED ONLINE Each of the following items must be included in order for your application to be considered complete If any required materials are missing, your application will not be considered complete and will not be considered for Gap II grant funding Applicant Information and Funding Overview (Appendix A) Signed Certification of Application and Financing Certification (Appendix B) DEP-NOI-CERP-FY2018-05/COMMBUYS#: BD-18-1045-BWR00-BWR01-20572 5 Grant Application Data Table (Appendix C) Complete energy assessments or studies describing the proposed efficiency and clean energy generation projects, including estimated energy savings or generation and estimated costs Supporting documentation from other grant or incentive partners (such as notice of receipt of application or a communication) indicating that the proposed clean energy project(s) are funded or are likely to be eligible for a grant or incentive PRE-APPLICATION CONSULTATIONS This funding opportunity is for specific, documented clean energy projects (energy efficiency and on-site renewable energy generation) To facilitate the application process, MassDEP is providing assistance in completing the Grant Application Data Table (Appendix C) to interested drinking water and wastewater facilities through its Clean Energy Results Program (CERP) A pre-application meeting with your MassDEP CERP Contact is available upon request and is strongly recommended (see below) In addition to the required applicant cost share through direct contribution or cost share, additional project funding sources must be described included in the Grant Application Data Table as applicable: • • • • • • • Direct contributions by the drinking water or wastewater facility (municipal, district, authority) Financing secured for the project Mass Save® energy efficiency incentives (e.g., National Grid, Eversource, Cape Light Compact, Unitil, Columbia Gas, Liberty Utilities, Berkshire Gas, and Blackstone Gas Company) Municipal Light Plant (MLP) energy efficiency incentives MA Department of Energy Resources (DOER) grants (Green Communities etc.) MA Clean Energy Center (MA CEC) grants U.S Department of Agriculture (USDA) Rural Development grants Other project funding sources (secured or anticipated) The MassDEP’s CERP Contacts can review the requirements of the application and your individualized Gap II funding spreadsheet, as well as assist you with information about additional partners that may be able to provide funding MassDEP CERP Contacts Michael DiBara michael.dibara@state.ma.us Phone: 508.767.2885 James Doucett james.doucett@state.ma.us Phone: 617.292.5868 COMMITMENTS IF AWARDED If a facility receives funding through this opportunity, it must agree to: 1 Contract with MassDEP to receive funding The grant awards will be distributed on a reimbursement basis based on actual costs and terms contained in the Standard Contract Form; 2 Reimbursable expenses must be incurred after the application submittal date and after a Standard Contract Form is fully executed by both parties 3 File quarterly reports throughout the term of the contract; 4 File a final report with MassDEP, including a project fact sheet to be made publically available; DEP-NOI-CERP-FY2018-05/COMMBUYS#: BD-18-1045-BWR00-BWR01-20572 6 5 Develop an educational and outreach component to the project, which can include development of educational brochures or fliers, web-based materials, or tours and presentations of the completed project; 6 Verify that project savings or revenue for efficiency and clean energy generated directly benefit the facility’s ratepayers; 7 Select a staff member to become authorized to use DOER’s MassEnergyInsight, a web-based nocost energy tracking tool for municipalities Note that some facilities/communities may already have an authorized user(s); 8 Verify and/or complete MassEnergyInsight accounts for the facility within six (6) months of the grant contract; and 9 Commit to ensuring MassEnergyInsight facility data is accurate and complete for one year following completion of the funded project(s) PROCUREMENT CALENDAR & ASKING QUESTIONS MassDEP Issues Grant Opportunity – NOI (Notice of Intent) posted on COMMBUYS and MassDEP website October 5, 2017 NOI Informational Meeting with Applicants (MassDEP, Central Regional Office, Worcester at 10:00am) & Deadline for Questions October 24, 2017 Begin Accepting all Applications (Online) November 6, 2017 Deadline for Submitting Gap II Grant Applications November 24, 2017 • This NOI is available on COMMBUYS at: https://www.commbuys.com/bso/external/advsearch/advancedSearch.sdo BID DOCUMENT #: BD-18-1045-BWR00-BWR01-20572 and MassDEP’s website at: http://www.mass.gov/eea/docs/dep/energy/gap-funding-clean-energy-noi.doc • ALL questions must be submitted by email to MassDEP, care of James Doucett, james.doucett@state.ma.us by 5pm on October 24, 2017 with DEP-NOI-CERP-FY2018-05 Gap II DW WW Clean Energy Question” in the subject line Responses will not be sent individually to inquirers, rather questions and answers will be posted on Commbuys under Bid Number: BD-181045-BWR00-BWR01-20572 • All applications must be submitted online via the submission process outlined in Appendix D DEP-NOI-CERP-FY2018-05/COMMBUYS#: BD-18-1045-BWR00-BWR01-20572 7 APPENDIX A – APPLICATION AND FUNDING OVERVIEW APPLICANT INFORMATION Legal Name of Entity Type of Entity Governance (Municipal, District, Authority) Function: Drinking Water or Wastewater Treatment List of Municipalities Served Contact Name Contact Title Email Address Telephone Electric Utility Gas Utility (if none, state heating fuel or source) FUNDING OVERVIEW Total Annual Expected Energy Cost Savings Total Project Cost $ $ Total Funding From Applicant (including financing)3 Total Other Funding Sources (Mass Save®, MLP, MA CEC, USDA etc.)2 $ $ Gap Funding Requested $ APPENDIX B: APPLICATION AUTHORIZATION 2 The total of all funding sources not contributed by the applicant or requested in this application includes utility incentives from electric/gas utility through Mass Save® programs for efficiency projects, funding from a Municipal Light Plant (MLP), the Mass Clean Energy Center (CEC) for renewable projects, any U.S Department of Agriculture (USDA) or Rural Water Association funds, other grants, etc Individual amounts should be detailed in the Grant Application Data Table (Appendix C) in excel form 3 Total funding from the applicant must be at least 10% of the total adjusted project costs (total project costs – incentives = adjusted project costs x 10% minimum municipal cost share) DEP-NOI-CERP-FY2018-05/COMMBUYS#: BD-18-1045-BWR00-BWR01-20572 8 MUST BE PROVIDED WITH SCANNED SIGNATURES (pdf) CERTIFICATION OF APPLICATION I hereby confirm that I am duly authorized to submit this application on behalf of the drinking/wastewater treatment facility/district of _ and that all information contained in this application to the Gap II Funding for Clean Energy Projects at Drinking Water and Wastewater Facilities Program is true and accurate _ Name Date Title FINANCING CERTIFICATION Applicants that intend to secure financing in order to implement the clean energy projects described in this application must also complete this certification: I hereby confirm that the applicant is duly authorized to apply for financing on behalf of the drinking/wastewater treatment facility/district of , and that if selected for a grant award the applicant will seek financing for the project as described in Appendix C _ Name Date Title COST SHARE CERTIFICATION I hereby certify that the applicant for Gap II Funding for Clean Energy Projects at Drinking Water and Wastewater Facilities Program, the drinking/wastewater treatment facility/district of , will satisfy the grant requirement to provide the required minimum cost share contribution of 10% of the total adjusted project costs, as described in Appendix C _ Name Date Title DEP-NOI-CERP-FY2018-05/COMMBUYS#: BD-18-1045-BWR00-BWR01-20572 9 APPENDIX C: GAP II GRANT APPLICATION DATA TABLE.xls Sample: Please fill in based on your project parameters Building Name and /or Location Project Name (description) Wastewater Treatment Plant Combined Heat and Power DW Pumping Station Municipal / District Name VFD Estimated Project Completion Date (month/year) Jul-15 Dec-14 Projected Annual Electricity Savings or Generation (kWh) 120,000 Projected Annual Natural Gas Savings (therms) 60,000 Projected Annual Cost Savings ($) $90,000 Total Project Cost ($) $400,000 Utility Incentives ($) $100,000 Municipal / District Cost Share Contribution ($) Minimum 10%4 $20,000 Other Grant NAME EASYGRANT ($) $100,000 Gap Grant Funding Requested ($) Audit or Study Reference $180,000 CHP Feasibility Study p 45 -50 Utility Energy Audit VFDs p 21 80,000 0 $20,000 $30,000 $14,000 $3,000 $0 $13,000 200,000 60,000 $110,000 $430,000 $114,000 $23,000 $100,000 $193,000 Audit or Study Page Reference(s) [5] Renewable & Energy Efficiency 4 N/A N/A Total funding from the applicant must be at least 10% of the total adjusted project costs (total project costs – incentives = adjusted project costs x 10% minimum municipal cost share) DEP-NOI-CERP-FY2018-05/COMMBUYS#: BD-18-1045-BWR00-BWR01-20572 10 APPENDIX D: ONLINE GRANT APPLICATION SYSTEM INSTRUCTIONS Getting Started • No paper submissions will be accepted for the grant application • Provide basic information to your MassDEP CERP Contact (contact info on page 5) that will enable MassDEP to pre-set the Online System for your application Please provide the entity name, legal address including zip code, and the primary contact name, title, email, and phone number The primary contact will receive an email invitation to the online application system and will be required to create a user profile • Use a high speed (broadband) Internet connection if possible Dial-up connections work, but may be frustratingly slow • Gather and prepare all of your electronic materials before beginning submission process • Name your electronic files with your entity name followed by wording that makes the content of the file clear – this is REQUIRED • Please read and follow the short, easy-to-follow instructions below Online System Instructions • PLEASE NOTE: You cannot return to a partially completed form to add or correct information If you log out without using the button, nothing will be saved in the system • To practice using the online application: Don't use the button When you use the button the information on the form along with uploaded files will be saved to DOER's system If you log back in, the form will be blank BUT the system saved your files and information • Please only submit once If you do not see your entity’s name on the drop-down pick list, made a mistake, or forgot something, please contact Jane Pfister at jane.pfister@state.ma.us / 617-626-1194 Submitting Your Grant Application 1 Fill out the online grant application form completely You will upload multiple files using the form 2 Using the Upload fields (green lines near the bottom of the form), click in a blank white space or on a grey button , browse to and select a file on your computer, then double click on it or choose open in the dialog box The file's path on your computer will show in the blank white space Be sure to upload each of these required files: Applicant Information and Funding Overview (Appendix A) (e.g., File Name – EntityName_AppA.doc) Signed Certification of Application (Appendix B) (e.g., File Name – EntityName_AppB.pdf) Grant Application Data Table (Appendix C) (e.g., File Name – EntityName_AppC.xls) Complete studies, not extracted pages, for the proposed clean energy projects (e.g., File Name – EntityName_VFD_EnergyServices.pdf) Supporting documentation from other grant or incentive partners such as notice of receipt of application or a communication indicating that the proposed clean energy project(s) are likely to be eligible for a grant or incentive (e.g., File Name – Entity Name_MassSave_inc_email.pdf) 3 Review the form and upload line carefully to make sure everything is complete and how you want it Use the calendar icon below the upload lines to select the date-time, and then click on the button o After you have clicked the button, you will be redirected to a confirmation page that says your application has been submitted Shortly you will receive an email from Jane Pfister (DOER – online grant submittal) confirming the receipt of your grant application and confirming the number of files uploaded 4 For Help Pre-Grant Application Process – Contact: Michael DiBara michael.dibara@state.ma.us Phone: 508.767.2885 James Doucett james.doucett@state.ma.us Phone: 617.292.5868 Online Application Process and Technical Issues – Contact: Jane Pfister at Jane.Pfister@state.ma.us or 617.626.1194 ... Gap II Funding for Clean Energy Projects at Drinking Water and Wastewater Facilities Program, the drinking/ wastewater treatment facility/district of , will satisfy the grant requirement... information contained in this application to the Gap II Funding for Clean Energy Projects at Drinking Water and Wastewater Facilities Program is true and accurate _ Name Date ... BD-18-1045-BWR00-BWR01-20572 installation of clean energy and energy efficiency projects at drinking water and wastewater facilities; Incentivize the direct investment in clean energy by municipal, district