2009 ILLINOIS E85 CLEAN ENERGY … · - 1 - 2014 illinois e85 clean energy infrastructure...

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2014 ILLINOIS E85 CLEAN ENERGY

INFRASTRUCTURE GUIDELINES &

APPLICATION FORM

In Partnership With

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Updated 2/7/2014

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SECTION 1. GENERAL INFORMATION 1.1 Purpose. The American Lung Association in Illinois (ALAIL) administers the Illinois E85

Clean Energy Infrastructure Development Program in partnership with the Illinois Corn Marketing Board. The program is designed to accelerate the use and availability of E85 fuel and other mid-level blends of ethanol as a clean burning, renewable alternative to conventional unleaded gasoline in the state of Illinois. The use of ethanol-based fuels reduces the outflow of energy dollars from the region, benefits the environment, and improves the rural economy. UL Certified E85-compatible dispensers are now available from both Dresser Wayne and Gilbarco Veeder-Root. The Illinois E85 Clean Energy Infrastructure Development Program funds the installation of new E85 refueling outlets serving the general public. Flex Fuel Blender Dispensers capable of dispensing multiple mid-level blend of ethanol (E15, E20, E30, E85, etc.) and multiple E15 Dispensers may be considered. Eligible costs for new facilities include ethanol-tolerant tanks, piping, pumps and dispensing equipment (including mid-ethanol blenders). The Program also funds the costs of converting existing retail stations to E85 operation. In the case of conversions, eligible costs include tank cleaning and ethanol-tolerant dispensing equipment. Due to limited funding, the ALAIL is primarily looking to support a large number of conversions of conventional gasoline facilities to Flex Fuel Dispensers with availability of E85 and mid-level ethanol blends by working with the owners and operators of stations seeking to convert multiple locations. Facilities located in or near “priority” areas within the state of Illinois (section 2.3) are preferred.

SECTION 2. ELIGIBILITY CRITERIA 2.1 Eligible Illinois E85 Clean Energy Infrastructure Development Projects.

Eligible projects must meet each of the following criteria: a. Projects must involve the purchase and installation of equipment for

ii. E85 refueling facilities, including ethanol-compatible tanks, piping, pumps, and dispensing equipment or

iii. Projects that are installing Flex Fuel Dispensers and E15 Dispensers, including ethanol-compatible tanks, piping, pumps, and dispensing equipment.

b. Projects must serve the general public and may also serve large E85 FFV fleets. c. Projects must be located in Illinois. Preference will be given to petroleum marketers and retailers desiring to convert several of their stores to E85 operation. Also, priority will be given to companies selling fuel in the targeted priority areas (see section 2.3) and at locations serving large numbers of state vehicles.

2.2 Eligible Applicants. Eligible applicants include businesses and for-profit organizations in Illinois serving the general public that desire to install, or convert retail E85 refueling facilities in accordance with the Illinois E85 Clean Energy Infrastructure Development

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Program. Eligible applicants must also have a demonstrated capability to administer a comprehensive retail fuel delivery system.

NOTE: An eligible applicant is encouraged to propose more than one refueling facility in the application.

2.3 Priority Projects. Funding may be awarded to those eligible applicants meeting one or

more of the following section criteria:

a. Applicants that propose to convert at least 4 stations to the sale of E85 and mid-level blends of ethanol fuel.

b. Applicants that plan to install a Flex Fuel Dispenser (a dispenser capable of dispensing mid-level blends of ethanol (E20, E30, E85, etc.) as opposed to an E85-only dispenser.)

c. Applicants that plan to install multiple dispensers capable of dispensing a mid-level blend of ethanol (E15, E20, E30, etc.) as opposed to an E85-only dispenser.

d. Proposed stations located in a county with a poor Flex-Fuel Vehicle to E85 Station ratio.

e. Proposed stations in locations that, on a case by case basis, the ALAIL and ICMB agree are important for expanding the E85 fueling infrastructure in Illinois.

2.4 Approvals/Legal Compliance. The applicant’s signature on the cover sheet attached as

Appendix A is its certification of the following:

a. That all authorizations required to perform the project have either been obtained or will be obtained.

b. 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.

Note: Approval and Legal compliance must be obtained no later than 60 days following the project start date set forth in the Notice of Grant Award issued by ALAIL.

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SECTION 3. GENERAL PROGRAM INFORMATION

3.1 Maximum Grant Award. The maximum grant award that may be requested on a per application basis is as follows: a. Up to $75,000 of eligible cost (Section 3.2) for the establishment of a minimum of four

separate refueling project locations (gas stations). 1. Locations must include E85 capable dispensers, but are strongly encouraged to

include dispensers capable of dispensing mid-level blends of ethanol (E15, E20, E30, etc.).

2. Final grant award will be based on the applicant’s ability to successfully address the Priority Projects listed in Section 2.3.

b. Up to $15,000 of eligible cost (Section 3.2) for the establishment of a single refueling project location (gas station).

1. Location must include E85 capable dispensers, but are strongly encouraged to include dispensers capable of dispensing mid-level blends of ethanol (E15, E20, E30, etc.).

2. Final grant award will be based on the applicant’s ability to successfully address the Priority Projects listed in Section 2.3.

c. Up to $7,500 of eligible cost (Section 3.2) for the conversion of an E85 dispenser to a Flex Fuel Dispenser OR for the conversion of a regular gasoline dispenser to an E85 dispenser without the addition of a new underground storage tank. 1. Final grant award will be based on the number of dispensers being converted at each

location and the extent to which the application meets the Priority Projects listed in Section 2.3.

NOTE: The actual amount of the grant amounts for applicants submitting applications at multiple locations will be negotiated based upon the amount of available funding and the evaluated strength of the project applications in regards to the evaluation criteria set forth herein. The ALAIL, and its partners, have the authority to implement pilot projects under these guidelines, and reserve the right to waive funding limitations and other program parameters.

3.2 Eligible Expenditures. Grant funds from the Illinois E85 Clean Energy Infrastructure Development Program can only be used for the following types of expenditures:: a. Purchase and installation of E85 refueling system components including:

i. Ethanol-tolerant tanks, piping, pumps, and fuel dispensing equipment (hoses and nozzles).

ii. Costs related to the conversion of existing tanks to Ethanol-tolerant tanks (i.e., tank cleaning and tank modifications)

The applicant should include a detailed budget in its application, using the format set forth in Appendix C. The purpose of these grant funds is to ensure that the E85 storage and dispensing equipment is ethanol-tolerant and compatible. Refer to the attached “Checklist” (Appendix E) of recommended procedures for installing and converting equipment to dispense E85 fuel.

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3.3 Ineligible Expenditures. Grant funds may not be used for the following types of

expenditures:

a. Purchase/rental of real property (land or buildings) b. Grantee’s normal operating/administrative expenses (not directly related to an

eligible project) including: i. Equipment and or machinery lease payments. ii. Purchase of consumable/disposable items unrelated to an eligible project. iii. Personnel expenses, including travel. iv. Feasibility studies and planning.

3.4 Required Commitment to Sell E85 Fuel. An applicant requesting an Illinois E85 Clean

Energy Infrastructure Development Program grant for the installation of a new or converted E85 refueling facility, or facilities, must commit to sell E85 fuel at each facility for at least 2 years after the E85 facility is installed. Applicants receiving funds for Flex Fuel Dispensers must commit to sell E85 plus two mid-level blends of ethanol (E20 or above) for a minimum of 2 years after the Flex Fuel Dispenser is installed. Applicants will also be required to submit fuel volume sales reports for all ethanol blends (E15 or above) for 2 years following the installation of the E85 or Flex Fuel Dispenser.

3.5 Definition of Flex Fuel Dispenser or Mid-Level Ethanol Blender Pump. A Flex Fuel

Dispenser or Mid-Level Ethanol blender pump draws two fuels from separate storage tanks (usually E85 and unleaded gasoline) and mixes them together in various percentages to form a variety of fuel choices for the station’s customers. More information about Flex Fuel Dispensers can be found at www.byoethanol.com.

3.6 Commitment to Comply with Federal and State Regulations. The retailer will comply

with all applicable federal and state regulations. 3.7 Payment Schedule. The grant agreement will specify the conditions of payment and the

payment schedule. The ALAIL reserves the right to determine the appropriate payment structure on a project-specific basis.

3.8 Reporting Requirements/Project Monitoring. Grantees will be required to submit

progress and expenditure reports in accordance with the requirements of the grant agreement. The ALAIL reserves the right to structure reporting requirements on a project-specific basis. The ALAIL project manager will monitor the grantee’s compliance with the terms of the grant.

3.9 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 ALAIL. For purposes of these guidelines, the project commencement date is the date on which all necessary procurement is complete, equipment is installed and operational, and the facility commences selling E85 fuel. The project commencement date for Illinois E85 Clean Energy Infrastructure Development Program projects should occur no later than three months from the beginning date set forth in the Notice of Grant Award.

http://www.byoethanol.com/

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3.10 Dissemination of Information/Technology Transfer. Grantees will be contractually

required to allow the ALAIL 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 ALAIL.

SECTION 4. APPLICATION PROCESS

4.1 Illinois E85 Clean Energy infrastructure Development Program Application Format.

The following information must be provided in the application:

a. Completed cover sheet (use format set forth in Appendix A). b. Narrative description of the proposed project (use format set forth in Appendix B). c. Detailed project budget (use format set forth in Appendix C). d. W-9 Form (use format set forth in Appendix D)

4.2 Submittal Instructions. One original and three copies of the completed cover sheet and

application should be mailed or delivered (fax submissions will not be accepted) to: American Lung Association in Illinois Environmental Programs 3000 Kelly Lane Springfield, IL 62711

4.3 Application Evaluation Criteria for the Illinois E85 Clean Energy infrastructure

Development Program.

a. Overall Quality of the Application. Please write clearly. b. Location of proposed facility or facilities (refer to Sections 2.1 & 2.3) c. Technical Feasibility of the Project

i. Potential for the project to accomplish the defined objectives of increasing E85 availability and sales

ii. Potential for the project to impact the additional installation of other E85 refueling facilities

4.4 Rejection of Applications. The ALAIL reserves the right to reject any application that

does not comply with the requirements of these guidelines and approved program criteria. Unsuccessful applicants who wish to discuss the evaluation of their application should submit a written request to this effect to the ALAIL.

The submission of an application under these guidelines confers no rights upon any applicant. The ALAIL is not obligated to award a grant or to pay any costs incurred by the applicant in the preparation and submission of an application.

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APPENDICES Appendix A Application Cover Sheet Appendix B Project Proposal Form Appendix C Application Budget Appendix D W-9 Form Appendix E Checklist of Installing or Converting Equipment to Dispense E-85

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APPENDIX A

American Lung Association in Illinois Environmental Programs

E-85 Clean Energy Infrastructure Development Program Application Cover Sheet

______________________________________________________________________________________________ Applicant Name ______________________________________________________________________________________________ Applicant Address (Street Number) _________________________________________________ ___________________________________________ Applicant Address (City, State, 9 digit zip code) Number of project locations included in this application _____________________________________ _________________________ ____________________________ Telephone and Fax Web site address e-mail address _________________________________________________ __________________________________________ Applicant Project Manager – Typed Name Title --------------------------------------------------------------------------------------------------------------------------------------------------------------- Organization Legal Status

Individual

Sole Proprietor

Partnership/Legal Corporation

Corporation

Not for Profit Corporation

Medical Corporation

Governmental

Estate or Trust

Pharmacy-Noncorporate

Nonresident Alien

Pharmacy/Funeral Home/ Cemetery Corporation

Tax Exempt

---------------------------------------------------------------------------------------------------- ---------------------------------------------------------- Financing Information $_______________ $ _____________________ $___________________ Grant Request Total Project Cost Applicant Investment (Cash) --------------------------------------------------------------------------------------------------------------------------------------------------------- Applicant Certifications -- applicant certifies that:

All authorizations required to perform the project, described in its application, have either been obtained or will be obtained no later than sixty (60) days following a grant award from the ALAIL.

The project complies with all applicable state, federal and local environmental and zoning laws, ordinances and regulations and that all required licenses, permits, etc., have either been obtained or will be obtained no later than sixty (60) days following a grant award by the ALAIL.

It is not in violation of the prohibitions against bribery of any officer or employee of the State in 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 385/3).

As of the submittal date, the information provided in its application is accurate, and the individuals signing below are authorized to submit this application.

_____________________________________ ____________________________________ Authorized Official (signature) Applicant Project Manager (signature)

_____________________________________ ____________________________________ Typed Name Typed Name Title: ____________________ Date: ___________ Title: ____________________ Date:___________

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Appendix B Illinois E-85 Clean Energy Infrastructure Development Program

- Project Proposal Form –

Project Location #1 A. Describe the station and its operation

1. What is the name of the station? _______________________________________________ 2. Address of station: __________________________________________________________

3. Phone number of Station: _____________________________________________________ 4. Is the station attended or unattended? ___________________________________________

5. Is there a convenience store or mini-mart at the station? _____________________________

6. What are the hours of operation? _______________________________________________

7. Does the station accept Wright Express Cards? ____________________________________

B. Provide a brief description of the proposed project including the following information:

1. Describe the work that will be done at the site related to the conversion or construction of the E-85 refueling facility. ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. What is the total number of islands and dispensers at the site? ________________________

3. How many dispensers will dispense E-85 fuel at the site? ____________________________ 4. How many dispensers will dispense mid-level blends of ethanol? ______________________

a. If mid-level blends of ethanol will be available at the site, what ethanol blends will be

available for purchase (E15, E20, E30, E50, etc.)? ______________________________

5. How many tanks are at the site? ________________________________________________

6. What size tank will be used for E-85 fuel?_________________________________________

7. Will the E-85 or Flex Fuel dispenser be a separate dispenser or part of an island? _________

8. Will a card reader system be used?______________________________________________

9. Estimated Start Date of Construction or Conversion:_________________________________

10. Estimated Completion Date of Construction or Conversion: ___________________________

11. Estimated Date of E-85 Fuel Sales to Public: ______________________________________

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1. What is the name of the station? ________________________________________________ 2. Address of station: ___________________________________________________________

3. Phone number of station: _____________________________________________________ 4. Is the station attended or unattended? ___________________________________________









available for purchase (E15, E20, E30, E50, etc.)?_______________________________








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1. What is the name of the station? ________________________________________________ 2. Address of station: __________________________________________________________


















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1. What is the name of the station? ________________________________________________ 2. Address of station: ___________________________________________________________


















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1. What is the name of the station? ________________________________________________ 2. Address of station: __________________________________________________________


















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APPENDIX D

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APPENDIX E CHECKLIST OF INSTALLING OR CONVERTING EQUIPMENT TO DISPENSE E-85

Notify your licensed installer and the state underground storage tank program of your intent to dispense E-85. Your installer should determine if the age, composition and condition of your tank and piping are safe for E-85 use. For assistance, contact the BYO (Blend Your Own) Ethanol group at www.byoethanol.com.

In the case of a conversion, the tank must be cleaned of all water and sediment. Ensure no water is present to protect the quality of your ethanol-blended fuels and your customers’ vehicles.

Ensure all visible fittings and connections at the top of the tank are tight (no vapors escape and no water enters).

Ensure the sump and spill containment covers will prevent water from entering the system.

Use ONLY 1-micron dispenser filters or a comparable E-85-specific filter with E-85 blends. Do NOT use 10-micron gasoline or 30-micron diesel filters. Cim-Tek is a popular brand of alcohol-compatible filters.

Use ONLY an alcohol-compatible hose with E-85.

Use ONLY steel or nickel-plated swivels, connectors and nozzles with E-85. Do NOT use

aluminum gasoline nozzles.

Identify the E-85 fill port and paint the access cover according to API RP 1637. Make certain transport drivers cannot make fuel deliveries to the wrong fill pipe.

Calibrate the dispenser liquid meter at time of conversion or new installation and two weeks later to verify meter accuracy with E-85. More frequent calibration (API RP 1626) may be required to ensure the retailer is receiving proper compensation for the sale.

Label dispenser with all E-85 logos, cautionary and trade commission decals. Use nozzle covers identifying E-85 is not gasoline or diesel. Consider using hangtags, pump toppers and other signage to educate your customers. Price sign inserts, curbside signs and the above decals and materials are available from the NEVC.

Tank should be filled to 80 percent of capacity and kept as full as possible for 7 to 10 days.

Conduct a precision test of the tank system (0.1 gallon/hour leak rate) with ATG system within seven days after tank is filled to confirm the integrity of the system and that the leak detection equipment is operating properly. Report any “fail” results immediately.

Ensure no water is allowed to contaminate your fueling system. If water is suspected or detected, track down its source and fix the problem immediately. The best way to guard against contamination is to properly clean and maintain the fueling system. Confirm no leaks exist in tank fill cap and containment reservoir before beginning your E-85 operation. Water-detecting pastes, suitable for E-85, may be available in the near future.

If product seems to pump slowly, check and replace filters. Persistently clogged filters could

indicate moisture or another source of contamination.

2009 ILLINOIS E85 CLEAN ENERGY … · - 1 - 2014 illinois e85 clean energy infrastructure...

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