Application for MA Clean Energy Center Grant, FROED, Fall River

8/9/2019 Application for MA Clean Energy Center Grant, FROED, Fall River

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Application for a Feasibility Grant

Commonwealth Wind Incentive Program

Solicitation No. 2010-CWIPCS-02

Submitted byCity of Fall River, Massachusetts

One Government CenterFall River, MA 02722-7700

May 4, 2010


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FORM A

Authorized Applicant Signature and Acceptance Form


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Form A

Authorized Applicant Signature and Acceptance Form

Commonwealth Wind Incentive Program: Community ScaleSolicitation No. 2010-CWIPCS-02

Form A


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Form A


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Form A


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FORM B-3

Feasibility Study Application


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Form B-3

Feasibility Study Application


Form B-3


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Commonwealth Wind Incentive Program: Community Scale

Feasibility Study

Solicitation No. 2010-CWIPCS-02_____________________________________________

Application and Budget Instructions and Forms

Complete the forms provided in this document by saving this MS Word file (Commonwealth Wind Incentive Program:Community Scale Initiative Application and Budget Forms) under a distinguishing file name. The application narrative must

be more than twelve pages in length (10 pt font), excluding the cover sheet, budget forms and required attachments. It isacceptable to expand the boxes to insert sufficient text in order to supply the requested information. MassCECs evaluationcriteria require complete, clear and concise proposals. It is the sole responsibility of the applicant to ensure that its applicaticomplete, meets minimum threshold requirements and is properly submitted to MassCEC (as detailed in the Solicitation).MassCEC reserves the right to only consider applications that, in its sole judgment, meet the minimum threshold requiremenNOTE: Applications must list the name and firm name of the technical consultant who will perform the feasibility study. It isrecommended that the technical consultant assist in filling out this application.

The application must contain, at minimum, the following:

Authorized Applicants Signature and Acceptance Form (Form A of the Solicitation)

Completed Application Summary Sheet

Completed Application Narrative

Completed Budget Form(s)

Signed General Terms and Conditions, if no exceptions noted (Form C of the Solicitation)

Required Attachments (see Section 12 for list)

REMINDER:Funds awarded are public funds and any information submitted to MassCEC by the Applicant in response to this grsolicitation is subject to public disclosure requirements as set forth in the Massachusetts Public Records Act. SeeSection 9.1 of the solicitation for a discussion of Public Disclosure requirements and procedures for handlingdocuments submitted to MassCEC and identified by the Applicant as sensitive information.


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Application Summary Sheet

Applicant Information

Primary Applicant Organization (must be primary end user):City of Fall River

Partners (if any):

Short Title of Project:Copicut Hill Wind Project Feasibility Study

Applicant legal status and state of jurisdiction:The City of Fall River, Massachusetts

Applicant Taxpayer ID#: Applicant is the City of Fall River - NotApplicable

Total Feasibility Study Cost:$77,121

Total MassCEC Funding Amount Sought:$77,121

Mailing Street Address:One Government Center

City/ Town:Fall River

State:MA

Zip Code:02722-7700

Applicants Simple Payback Requirement for Wind Energy

System (years):8 to 9 years

Has Applicant previously received assistance from

MassCEC/MRET? If yes, please explain and include amountreceived: The applicant previously received an MTC grant for aWind Feasibility Study at the Fall River Sewage Treatment Plant.The amount was for $41,149. Unfortunately, limited space at thesite did not allow adequate room to address required setbacks fromproperty lines and limited space/proximity to important facilityinfrastructure made construction problematic.

x Check here to confirm that Applicant has thoroughly reviewed Appendix A: Minimum Technical Requirements forCommunity-Scale Projects and meets those requirements,

Facility and Site Information

Name of Project Facility (Electrical Load end user):City of Fall River Municipal Buildings

Facility Type (highlight appropriate facility type):

The electricity from the project will be used via net metering to supply municipal facilities owned by the City of Fall River, including schools,City Hall, and the sewage treatment plant. The list of facilities and their electricity usage is provided in Attachment No. 5.

Facility Street Address:The project is on Copicut Hill in Fall River. The facilities that will usethe electricity include various municipally-owned buildings in differentlocations in Fall River. See information in Attachment No. 5.

City/ Town:Fall River

State:Massachusetts

Zip Code:02722-7700

Electric Utility Service Provider and Rate Class:

National Grid is the electricity provider in Fall River. The rate classvaries among the Fall River City-owned facilities that use electricity.See rate classes shown in Attachment No. 5, which shows the rateclass for the top 30 municipal electricity users in Fall River.

Average Annual Retail Electricity Usage (kWh) and Peak

Electricity Demand (kW) for Project:The average annual electricity demand at the largest municipally-owned facilities is equal to more than 29,914,000 kWhs. SeeAttachment No. 5, which itemizes electricity use amongst the largest30 municipally-owned electricity users in Fall River. The monthlysum of the peak electricity usage is equal to 33,460,000 kWHs.

Wind Energy Project Technical Information


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Proposed Wind Project System Size

The project would consist of between two and six 1.8 MW turbines,and thus range from 3.6 MW to 10.8 MW in total generation capacity.

Annual Net Electricity Production Estimate (kWh) and Estimateof Behind the Meter Electricity Use:

Based on the available preliminary data, it is estimated that eachVestas V90 1.8 MW turbine will generate over 4,400 MWhs per yearduring the projects lifetime. The total production out of the windfarm, assuming six turbines, would total slightly over 26,400 MWhsper year, enough to supply close to 100% of the electricity used bythe City of Fall Rivers 30 largest facilities, which use 29.9 MWhs

per year.

Estimated Installation Completion Date of Wind Energy Project:A draft feasibility assessment, including wind monitoring, will be completed as soon as possible. The City of Fall River is committed toexpediting the schedule and believes it can provide the draft report in 14 to 16 months from the contract effective date. The final report will beprovided within one or two months after that. Assuming a contract effective date of July 2010, a draft report would be issued by November2012. The completion of the actual wind project would proceed in accordance with the schedule of requirements outlined in the grant fundingfor design and construction grants, which requires commencing construction within 24 months of receiving a design and construction grant,though the City believes we can do this in 16 to 20 months. If such a construction grant were issued in February 2012, for example,construction could start by October 2014. The City will be conducting planning, financing, and procurement research during the feasibilitystudy time frame to expedite design and construction activities in the next stage of work.

Estimated Simple Payback of Wind Project without MassCECIncentive (years):

We estimate that the Copicut Hill Wind Project will, on an unleveredbasis and WITHOUT MassCEC funding, have a simple cash paybackperiod of between 8-9 years. If a 10% discount rate is used to valuethe future cash flows generated by a six turbine $33.8 million projectduring the life of the power supply agreement, the projects NetPresent Value (NPV) adds up to slightly more than $3.3 million.

Estimated Simple Payback of Wind Project with MassCECIncentive (years):

We estimate that the Copicut Hill Wind Project will, on an unleveredbasis and WITH MassCEC funding, also have a simple cashpayback period of between 8-9 years. This is based on theassumption that the project obtains the maximum grant allowed forpublic sector projects (i.e., $400,000). If a 10% discount rate isused to value the future cash flows generated by a six turbine $33.8million project during the life of the power supply agreement, theprojects NPV adds up to slightly more than $3.7 million.

Point of Contact Information

Primary Contact: Authorized to commit organization; notified upon decision of grant awardName: William Flanagan Title: Mayor

Organization: City of Fall River Phone: 508-324-2600

Email Address: [email protected] Fax: 508-324-2626

Mailing Street Address: One Government Center City/ Town: Fall River

State: MA Zip +4 Code: 02722-7700http://www.fallriverma.org/index.php?option=com_content&view=article&id=104&Itemid=87

Project Manager: Contact over course of projectName: Ken Fiola, Jr. Title: Executive Vice President

Organization: Fall River Office of Economic Development Phone: 508-324-2620



State: MA Zip +4 Code: 02722-7700

Website:http://www.froed.org/

Publicity Contact: Listed on MassCEC website for project information requests; contact for publicity effortsName: Ken Fiola, Jr. Title: Executive Vice President

Organization: Fall River Office of Economic Development Phone: 508-324-2620



State: MA Zip +4 Code: 02722-7700


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Website:http://www.froed.org/

Other Contractors Contact Information (For Conflict of Interest Verification)

Name: Jeff Brandt Title: Project Manager

Organization: TRC Environmental Corporation Phone: 978-656-3662


Mailing Street Address: 650 Suffolk Street City/ Town: Lowell

State: MA Zip +4 Code: 01852

Website: www.trcsolutions.com

Name: Ben Evans Title: Communications Engineer

Organization: Evans Associates Phone: 262-242-6000


Mailing Street Address: 216 Green Bay Road, Suite 205 City/ Town: Thiensville

State: WI Zip +4 Code: 53092-1657

Website: www.evansassoc.com

Name: Jonathan Markey Title: Senior Project ManagerOrganization: Meridian Associates, Inc. Phone: 978-299-0447 x214


Mailing Street Address: 152 Conant Street City/ Town: Beverly

State: MA Zip +4 Code: 01915

Website:www.meridianassoc.com


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Application Narrative

1. Proposed Project Summary (Please keep it concise)

Project Title and Location

(City and State)

Organization: City of Fall River

Facility Type: Wind Turbine(s) for Use by City of FallRiver

Project Size (kW):: 3.6 to 10.8 MW basedon a planning rangeof two to six 1.8 MWturbines.

Grant Request: $77,121

Contact: William Flanagan508-324-2600

The grant application is for a feasibility study to construct between two to six 1MW turbines on Copicut Hill, in Fall River, Massachusetts. CopicutHill is locaoff the east side of Yellow Hill Road in the eastern undeveloped portion of FallRiver. The area is currently used by the Fall River Water Department for aquiprotection and is entirely forested except for a dirt access road leading to the tof the hill. The closest house is more than 1800 feet away. The study area fothe wind turbine includes more than 160 acres of city owned land all of which located at elevation 90 meters and higher, and is in and around Copicut Hill.

The site was chosen via a careful City-wide study of potential wind developmesites funded independently of the MassCEC. In addition, the City of Fall Riverhas already: assessed economics of the project (see economic analysis furthebelow and pro forma data in Optional Attachment No. 1); conducted a windresource assessment of the area from several existing sources of wind data (SOptional Attachment No. 9); evaluated land use issues and potential wetlands

and threatened and endangered species issues (See maps in Attachment no. performed a detailed permitting analysis and permitting schedule (See OptionAttachment Nos. 7 and 8); and hired a consultant to prepare this application. funding for this work will therefore build upon this information, help resolveissues, and allow the City to develop a fully vetted, investor ready wind energysite.

The turbines will be connected to either a distribution line along Yellow Hill Ronear the western end of the wind turbine planning area, or to a 115 kV lineadjacent to the north end of the wind turbine planning area. Electricity generaby the project will be used entirely by the City of Fall River via net metering toaddress the Citys electricity needs for its various municipal facilities, includingschools, City Hall, and the waste water treatment plant.

The project team includes the City of Fall River who is the applicant and willmanage the work; TRC Environmental Corporation who helped prepare the grapplication and will help manage the project, prepare the feasibility study, andcoordinate the subcontractors; Evans Associates for communication interferenanalysis, and Meridian Associates for erection of the meteorological (met) towand downloading of data.

The proposed scope of work includes the erection of a met tower and windresource analysis, and a careful evaluation of potential issues via: acommunications interference study, a wetlands survey, T&E species survey, aa full analysis of issues required in Appendix B-1: Feasibility StudyRequirements.

With respect to schedule, the City of Fall River is committed to expediting thework and believes it can provide the draft report in 14 to 16 months from thecontract effective date. The final report will be provided within one or two monafter that.

2. Team Commitment and Qualifications (Please keep it concise)

2.1. ApplicantCommitment

Description of Applicant The project applicant is the City of Fall River, which is experienced inmanaging various new development projects. The City will be assisted by TRC EnvironmentalCorporation, which was hired to assist with this grant application and has been working on a City-widewind feasibility assessment which concluded the Copicut Hill area is an optimal location for a wind proj


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within the City.

The City is committed to minimizing its reliance on fossil fuel and creating renewable energy alternativeto help reduce emissions of CO2 and reduce associated costs of purchasing electricity. Many of theseinitiatives are already in progress and are funded by the City and through a federal energy efficiency aconservation block grant including: restoring a hydropower source and building a new crescent-shapeddam and waterfall; encouraging re-use of existing mills for new industry research and development;

exploring tidal generation; lowering energy costs to operate City buildings; and creating green collar jothrough renewable sources of energy.

Objectives of the Project The objective of this specific wind feasibility study is to confirm that adequawind resources exist in the area of Copicut Hill and eliminate any potential critical flaws so the City canmove this project to the design and construction phase. The driving force for Fall Rivers focus on thisproject is to create a community wind facility that can reduce electricity costs for the City and bring mucneeded revenues. The additional revenues from electrical cost savings will be used to help the City tomeet its budgetary obligations in the midst of decreases in funding to cities and towns.

Financial Analysis The typical institutional investor that participates in community-scale wind projects(50MW) wind projects. The key driver of this difference in expected returns is the higher relative leve

performance risk from a small wind farm when compared to the expected predictability in production oflarge wind farm. In other words, it is easier to predict the performance of 100 turbines at a single site tit is to predict the performance of 5 or 10 wind turbines at a single site.

Based on the above, institutional investors in the community-scale wind asset class tend to expect anafter-tax Internal Rate of Return (IRR) in the 10-12% range at a minimum. Under most scenarios, the Ifor this project falls in the 10.5%-12.5% range on an unlevered basis.

IRR is defined as the rate of return that would make the present value of future cash flows plus the finamarket value of an investment equal to the current market price/value of the investment. The higher thIRR, the better a given projects financial viability. IRR serves as a good tool to compare projects amoeach other. Ultimately, a projects Net Present Value (NPV) determines whether it is a good investmenopportunity or not. The calculation of a projects NPV is dependent on the cost of the capital to beinvested in the project.

Based on our preliminary analysis of the documented wind resource at Copicut Hill, our capital costestimates for various turbine configurations, and the provision of power to the City of Fall River at asignificant discount ($0.115 per kWh versus for example $0.165 per kWh for the Citys Water DepartmFacility [1997 rates] for delivered power), the Copicut Hill Wind Project meets the operating and financperformance metrics necessary for a successful project.

We estimate that the Copicut Hill Wind Project will, on an unlevered basis and WITHOUT MassCECfunding, have a simple cash payback period of between 8-9 years. If a 10% discount rate is used to vathe future cash flows generated by a six turbine $33.8 million project during the life of the power supplyagreement, the projects NPV adds up to slightly more than $3.3 million.


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We estimate that the Copicut Hill Wind Project will, on an unlevered basis and WITH MassCEC funding

also have a simple cash payback period of between 8-9 years. This is based on the assumption that thproject obtains the maximum grant allowed for public sector projects (i.e., $400,000). If a 10% discounrate is used to value the future cash flows generated by a six turbine $33.8 million project during the lifthe power supply agreement, the projects NPV adds up to slightly more than $3.7 million.

See pro forma in Optional Attachment No. 1

2.2. Host/PartnerCommitment

Not Applicable

2.3. TeamDescriptionandQualifications

City of Fall River: The City of Fall River will oversee the grant to ensure the work is carried out inaccordance with the commitments made in this application. Ken Fiola of the Fall River Office of EconoDevelopment will act as the project manager on behalf of the City and coordinate the day-to-day workamong contractors and development of the feasibility report, which will be carried out by TRC


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Environmental Corporation.

TRC Environmental Corporation: TRC will manage the preparation of the report and coordinate thesubcontractor work with oversight and direction from Ken Fiola of the Fall River Office of EconomicDevelopment. TRC has over 2,000 employees and has worked on more than 100 wind projects acrosthe country, including the writing of the 2,000 page Environmental Impact Statement (EIS ) for the CapWind project. TRC has a staff of more than 200 people in its Lowell office, including leading experts in

field with respect to wetland delineation, T&E species, environmental impact analysis, environmentalpermitting, noise studies, shadow studies, and wind resource assessments (see qualifications in OptioAttachment No. 3).

Evans Associates: The City of Fall River will use Evans Associates to evaluate any potential forcommunication interference as a result of the project. Evan Associates has performed this function forprojects all cross the country, including the Cape Wind project. Their expertise extends to the allocatioand design of commercial and educational broadcast facilities (AM, FM and TV), microwave networks awireless systems (See Optional Attachment No. 6).

Meridian Associates: Meridian Associates will install the met tower and perform data acquisition.Meridian has installed many met towers for Massachusetts wind feasibility studies (i.e. Beverly, SalemHamilton, Endicott College, Bristol community college, Trustees of reservations) and has consistentlydelivered quality data needed to assess the viability of a site and to support required financing (See

Optional Attachment Nos. 4 and 5).

See organization Chart in Optional Attachment No. 2. and resumes in Attachment No. 4.

3. Project Technical Characteristics and Current Status

3.1. SiteSuitability

The size of the site, approximately 160 acres, its separation from homes (closest home is at least 1,80feet away) and other sensitive receptors, and its elevation (90 to 105 meters above sea level) make itideal for wind development. In addition, the orientation of the ridgeline is in a northwest direction, makit well positioned so that a turbine array can capture the southwest wind, the predominant wind resourin the area. Finally, preliminary GIS mapping shows there are almost no wetlands on the site (we willconfirm this via a wetland survey that is part of this grant application).

The City of Fall River municipal electric demand is fairly high (29 million kWhs per year for the Citys 3largest electricity users);the project will be able to meet a large portion if not all of this demand dependon the number of turbines used at the site. The area is currently served by National Grid.

The site complies with the Citys wind bylaw setbacks, which require a setback from property lines androads equal to the height of the turbine at its highest blade tip. As well, the isolated nature of the siteensures that noise and shadow flicker impacts will not be an issue, and its setbacks also help to ensurthat visual impacts will be minimized as it will likely only be viewed from far away due to the very limiteuse of the area and the dense uninterrupted tree cover that obscures views from within the easternportion of Fall River.


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3.2. ProposedTechnology

The City of Fall River is evaluating two types of turbines. These are summarized below:

Performance statistics for each Vestas V90 1.8MW Turbine

Turbine Capacity 1,800 kWTurbine Manufacturer and Model Vestas V90Rotor Diameter 90 metersWind Speed Estimate at 70m 6.4 m/sHub Height 80-90 metersWind Speed Translated to Hub Height 7.0 m/s

Estimated Annual kWh Output 4,415,000 kWhs

Performance statistics for each Vestas V82 1.65MW Turbine

Turbine Capacity 1,650 kWTurbine Manufacturer and Model Vestas V82

Rotor Diameter 82 metersWind Speed Estimate at 70m 6.4 m/sHub Height 80 meters

Wind Speed Translated to Hub Height 6.6 m/sEstimated Annual kWh Output 4,040,000 kWhs

Based on the available preliminary data, it is estimated that each Vestas V90 1.8 MW turbine willgenerate over 4,400,000 kWhs per year during the projects lifetime. The total production out of the wifarm, assuming six turbines, would total slightly over 26,400,000 KWhs per year, enough to supply closto 100% of the electricity used by the City of Fall Rivers 30 largest facilities, which use 29,900,000 KWper year.

3.3. FinancialAnalysis

The Copicut Hill Wind Project will be fully owned by a third-party investor. The third-party investor wousign either a long-term power purchase contract or revenue sharing agreement with the City of Fall RivThe benefits to the City of Fall River under either structure would be comparable. The primary differenbetween the two options is that under a royalty/lease regime, the City would potentially benefit fromincreased power prices in the form of higher royalty/lease payments. Under either contractual agreemthe project would seek to become a net-metered facility. Furthermore, the project would seek to beclassified as a Class III municipally-owned/operated project thus providing the highest value for each kgenerated by the project. In the case of municipally-owned/operated projects, Class III facilities receivnet metering credits for the retail (wholesale power, transmission, and distribution) value of electricityminus certain program administration charges.

The long-term power purchase contract would be for all of the power produced by the project for a term20 years, with an option to extend the purchase agreement by an additional 10 years. The power woube sold at a discount to prevailing power prices and contain a fixed inflation escalator for the contractsterm.

The revenue sharing agreement would differ from the above power purchase agreement (PPA) in that project would sell the power generated to the City of Fall River at market prices and would instead payCity a percentage of the projects revenues in the form of a royalty or a land lease agreement.

The PPA and the royalty agreement would both contain standard buyout provisions that would make itpossible for the City of Fall River to purchase the facility after a number of years at fair market value.Most investors that have expressed an interest in the project have indicated that they would only useequity capital in the project and do not contemplate the use of debt at any later stage as part of theprojects long-term financing plan. We believe this is a reasonable strategy given the relatively small siof the project. We have nevertheless considered the capital structure that would be necessary to fundproject using debt as part of the projects long-term financing as part of our analysis. Snapshots of the


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capital structures are included below.

Also attached is a financial pro-forma that strongly demonstrates the projects viability under both alevered and unlevered financing scenario. The model is built based on our first choice turbine, the VestV90 1.8 MW. The first section of the pro-forma outlines our basic assumptions while the second sectioshows detailed income and cash flow statements for the project over its 20-year life. The included moassumes an electricity sale price to the City of Fall River of $0.115 per kWh, representing savings of 30

versus the Citys current kWh charges. There is a 2.5% inflation escalator built in to the model after yeone.

Were the projects investor to choose to use debt as part of the sources of funding for the project, wewould expect that investor to pursue Federal loan guarantees under the auspices of the Department ofEnergys (DOE) Financial Institutions Partnership Program (FIPP).

Sources of funding:

Unlevered Case 6 x 1.8MW

Total Capital Cost $33.8 millionFederal ITC $9.3 millionSponsor Equity $25.2 millionMassCEC Funding $0.4 million

Levered Case 6 X 1.8MW

Total Capital Cost $33.8 millionFederal ITC $9.3 millionSponsor Equity $7.6 millionMassCEC Funding $0.4 millionLong Term Debt $17.6 million

Based on the available preliminary data we estimate that each Vestas V90 1.8 MW turbine will generatover 4,400 MWhs per year during the projects lifetime. The total production out of the wind farm wouldtotal slightly over 26,400 MWhs per year, enough to supply 100% of the electricity used by the City of FRivers 30 largest facilities. We have included summary statistics for the two primary turbines underconsideration for this project. Performance data for each model is presented on a per turbine basis. Sproject pro-forma attached in Optional Attachment No. 1.

3.4. Project Risks The City of Fall River does not see any unusual project development risks at this site. The City of FallRiver has already done a feasibility analysis of its own and identified issues that will be addressed in thfeasibility analysis, so that upon completion we can have a fully vetted investor ready wind developmensite. The City of Fall River believes this is an excellent site and has the potential to provide a substantamount of wind-generated electricity, which differentiates it from many other community-based proposa

3.5. DevelopmentProgress

TRCs engineers have done a preliminary evaluation of the interconnection requirements and propose do a more in-depth analysis upon award of this funding. Current understanding is that the lines on theaccess road off to the top of Copicut Hill are single-phase and inadequate. The lines along Yellow HillRoad are three-phase and might possibly be available for a small project, but would likely need to be

improved. The 115 kV lines which run adjacent to the north side of the turbine planning areas are anexcellent prospect, and further work will be done to evaluate how best to tie into this transmissionresource. The pro-forma financials have taken into account interconnection costs, and this does notappear to be a critical flaw.

A draft feasibility assessment, including wind monitoring, will be completed as soon as possible. The Cof Fall River is committed to expediting the schedule and believes it can provide the draft report in 14 t16 months from the contract effective date. The final report will be provided within one or two monthsafter that. Assuming a contract effective date of July 2010, a draft report would be issued by Novembe2012. The completion of the actual wind project would proceed in accordance with the schedule ofrequirements outlined in the grant funding for design and construction grants, which requires commenc


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construction within 24 months of receiving a design and construction grant, though the City believes it do this in 16 to 20 months. If such a construction grant were issued in say February 2012, then this womean construction could start by October 2014. The City will be conducting planning, financing, andprocurement research during the feasibility study time frame such that design and construction activitiecan be expedited in the next stage of work.

The City has already taken several aggressive steps toward competing this feasibility analysis as follow

Conducted a City-wide assessment for the optimal location for a wind turbine project

Conducted wind resources assessment (See Optional Attachment No. 9)

Evaluated Copicut Hill for environmental and land use designations via GIS and preliminary sitvisits

Hired TRC to prepare this grant application

Conducted a detailed financial analysis to evaluate financial feasibility and identify financingmethods (see analysis below, and pro-forma in Optional Attachment No. 1)

Conducted detailed permitting assessment and permitting scheduling (see detailed permittingdiscussion in Optional Attachment No. 7 and draft permit schedule in Optional Attachment No.

Accordingly, the City of Fall River already knows a lot about the Copicut Hill site, and this feasibilityanalysis is more focused then many. It seeks to understand in detail the wind resources available andassess potential critical flaws via: a communications interference study, a wetlands survey, T&E speciesurvey, evaluation of interconnection options, and will address the various issues required in Appendix1.

Permitting Requirements for Copicut Hill Project: To a large extent, the amount of permitting requirfor this project will hinge on the amount of wetland impacts, which will need to be determined via awetland field survey, which has been scoped as part of this feasibility study. If no wetlands are requirepermits may be limited to a building permit, zoning approval, FAA, and NPDES stormwater. If wetlandwork is required or work in the wetlands buffer zone, then the following could also be required, and wouvary depending on the amount of wetlands affected: 1)Conservation Commission Approval; 2)Massachusetts Environmental Policy Act (MEPA) Review - Environmental Notification Form; 3) MassD

- Water Quality Certification (314 CMR 9.00: 401); 4) U.S. Army Corp of Engineers (ACOE) Type 2Programmatic General Permit; and 5) U.S. Environmental Protection Agency NPDES StormwaterPermit for Construction and Operation. A detailed evaluation of permits required and their schedule isprovided (See Optional Attachment Nos. 7 and 8).

4. Energy Efficiency Measures

The City has over $500,000 in revenues from a grant via the American Recovery and Reinvestment Act (ARRA) specificallycommitted for the installation of energy saving devices within its municipal buildings that would be served by this project via nmetering. The City is performing energy audits to refine its optimal selection of these conservation devices. The following aresome improvements proposed:

Government Center & City Council Chambers: Existing fixtures will be upgraded with T8 lamps, electronic ballasts, andreflectors in 1,119 locations. Metal Halide retrofit kits will be installed in 483 locations. Existing fixtures will be upgraded with T

amps and electronic ballasts in 429 locations. Existing fixtures will be upgraded with T8 lamps, electronic ballasts, and retrofikits in 165 locations. Compact fluorescent lamps will be installed in 52 locations. New wraps will be installed in 40 locations.Existing fixtures will be upgraded with T8 lamps and dimmable electronic ballasts in 8 locations. New exit signs with batterybackup will be installed in all locations not currently using LED technology.

Henry Lord Middle School: Existing fixtures will be upgraded with T8 lamps and electronic ballasts in 1,153 locations.Extraneous fixtures will be removed in 28 locations. New T8 high-bays with cages will be installed in 24 locations. New wrapsbe installed in 13 locations. Compact fluorescent lamps will be installed in 8 locations.

Spencer Borden Elementary School: Existing fixtures will be upgraded with T8 lamps and electronic ballasts in 623 locationNew T8 high-bays with cages will be installed in 24 locations. Existing fixtures will be upgraded with T8 lamps, electronic balla


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and reflectors in 6 locations.

5. Project Programmatic Benefits

The project is proposed in an area where there are no wind turbines, and as such, will add important differsification to theelectrical generation base which is predominantly provided by gas and coal fueled electric generation facilities. The project wmprove system reliability to the extent fossil fuel shortages occur because of excess demand or delivery problems. The proje

will use local labor to the extent possible for construction and operation, which will help the local economy. In addition,construction of a somewhat larger community wind power facility (i.e., two to six turbines) at a green field location will helpdemonstrate that wind turbines are compatible with the use of such areas for recreational and/or conservation. Finally, theproject will also be an important visible sign of the City of Fall Rivers efforts to become a green city, can be used for educatioabout renewable energy, and can help encourage other renewable energy development in the City.

6. Scope of Work and Schedule

6.1. RequiredDeliverables

The City of Fall River is aware of the MassCECs deliverable requirements detailed in Appendix B-2, athe required schedule outlined for meeting them, and is committed to fulfilling these requirements as paof this grant. These requirements generally cover the following areas: 1) prepare and executive summ2) evaluation of the site wind resource; 3) evaluation installation and physical site characteristics; 4)evaluate characteristics of the site vicinity; 5) evaluate installation site electrical infrastructure; 6) identif

and evaluate environmental concerns; 7) evaluate required reviews, permits, and approvals; 8) prepareconceptual wind plan configuration; 9) prepare a schematic site plan; 10) estimate wind project energyproduction; 11) estimate wind project costs; 12) estimate project revenues; and 13 prepare a financialanalysis. The City of Fall River has already been addressing many of these issues, and this grant fundwill help the City to analyze these issues in depth and thoroughly address any issues that could be critflaws.

6.2. Scope of Work and Schedule

The work plan for the project begins with obtaining a building permit for the met tower, and then installing the tower. During thnext 12 months, the met tower will collect data, and Meridian Associates will download the data remotely. At the same time, Twill direct other tasks necessary to complete the feasibility assessment. These include a communication interference analysissurvey, a wetlands and T&E survey of the whole turbine planning area (to assist in drawing the required turbine configuration

access roads), an interconnection analysis, and other required work. After the full 12 months of monitoring are complete, TRCwill prepare the draft feasibility report within the next few months. Approximately one or two months after that, we would submthe final feasibility report. Dates for these activities are provided in the table below.

The City of Fall River will also perform business planning activities under this grant that coincide with the development of this report so that can proceed quickly after completion of the feasibility report to financing, procurement, and construction. These activities will include thefollowing:

Identifying and costing out of other tasks that have to be performed to plan for and develop such a project and a greaterunderstanding of risks involved in such an endeavor, and how the city can address those risks.

Compilation of a 3rd party developer/institutional investors to whom an RFP will be mailed.

Community relations work to ensure a full understanding and buy-in from critical local stakeholders.

Discussion with local and regional banks to encourage early understanding of the proposal and attract local participation in the debfinancing portion of the project.

Identification of federal and state grant and loan opportunities and preliminary discussions with grant and loan makers.

Preliminary development of an RFP to solicit proposals from wind developers and institutional investors for constructing, owning, aoperating a wind generation facility in Fall River.

Refinement of the existing pro forma (see Optional Attachment No. 1) to include development of additional financing structures.

Copicut Hill Wind Project Feasibility Study


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Task/ Milestone End Date Responsible Party

Project Kick-Off Meeting 7/1/10 Fall River Office of EconomicDevelopment (FROED) andTRC

Obtain Building Permit (if applicable) 7/30/10 Meridian Associates

Installation of MET Tower (If applicable) 9/ 15/2010 Meridian Associates

Obtain FAA approval (if required) 9/1/2010 Meridian AssociatesWetland Survey to Help Locate SpecificSite for Met Tower within the Met TowerPlanning Area

8/1/ 2010 TRC

Draft Feasibility Report 11/1/2011 TRCCommunication Interference AnalysisSurvey

10/1/2010 Evans Associates

Wetlands and T&E survey for whole site 9/1/ 2010 TRCInterconnection Analysis 10/1/2010 TRCWind and other Assessments perFeasibility Study

Requirements at Appendix B-1

10/15/2011 TRC

Final Feasibility Report 12/1/2011 TRC

7. Incentive Calculation )

Below are the available incentive levels for Feasibility Study grants. MassCEC strongly encourages applicants to request lessthan the eligible incentive level.

Feasibility Study Incentive Levels per Project

The City of Fall River requests $49,841 in basic incentive for its feasibility study, $7,280 for business planning, and $20,000 fothe wind equipment adder. Refer to budget description and schedule below.

8. Budget

8.1. Budget Form See budget sheet below

9. Exceptions to the General Terms and Conditions and Task Order Template

See Terms and Conditions in Attachment No. 2.

10. Demonstrate No Conflict of Interest

The City of Fall River is not aware of any conflicts of interest in pursuing this grant funding.

11. Massachusetts Government Entities Only: Demonstrate Compliance with Massachusetts PublicProcurement Law

The City of Fall River is not a Massachusetts government entity and is not subject to theabove procurement law. Regardless, the City of Fall River has evaluated the potential use ofcontractors based on their experience and costs in accordance with competitive procurementpractices.


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12. Required Attachments

12.1. FeasibilityAttachments

The following attachments are provided:

Budget Forms (See Attachment No. 1)

Signed General Terms and Conditions (see Attachment No. 2)

Site Owner Commitment Letter (see attachment No. 3)

Resumes of key team members (See Attachment No. 4)

Electricity Usage Data (see Attachment No. 5)

Completed Form B-2: Site Assessment Deliverable Template. (See Attachment No. 6)

12.2. OptionalAttachments

TRC has included the following Optional Attachments:

1. Financial Analysis

2. Organizational Chart

3. TRC Qualifications

4. Meridian Associates Proposal

5. Meridian Associates Qualifications

6. Evans Associates Proposal

7. Permitting Requirements

8. Permitting Schedule

9. Wind Resource Assessment


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Attachment No. 1: Budget Form

General Cost Information (BUDGET FORM IS AN EXCEL SPREADSHEET: SEE INSTRUCTIONS FOR FILLING OUT BUDGET FORM)

Applicant:

The City of Fall River

Title of Proposed Project:

Copicut Hill Wind Feasibility Study

Type of Project:

Wind Feasibility Study

Total Project Budget:

$77,121

Total MassCEC Grant Request:

$77,121


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Tree Clearing

Meridian Associates, Tree Clearer

Environmental and Engineering Studies

TRC, Kevin Fougere, Electrical Engineer (interconnection evaluation)

survey)

TRCKelly Kippenberger, Wetland Scientist II (Wetlands and T&Esurvey)

TRC, Greg Studdwell, GIS Specialist II (Wetland & Site Drawings)

TRCSamantha Hard, Senior Wetland Scientist (Wetlands Survey)

TRC, Al Klausmann, Sr. Meteorologist (Wind Resource Analysis and

Report)

TRC, J. Brandt, Principle Consultant (Feasibility Report Review and

project mgmt)

TRC, J. Brown, Project Manager (Land Use & Feasibility Report Writing)

TRC, P. Silva, Administrative Assistant (Report Writing)

Evans Associates, Ben Evans, Communications Engineer

(communications Study)

Fall River Office of Economic Development, Ken Fiola, Executive Vice

President (Business Planning)

TRC, John Devillars, Principle, (Project Planning and Financing)

rave oss or e an s urvey - ena ar + as -

assume 3 trips to site

TRCTravel Cost for Electrical Interconnect Study - Mileage - 574 mils rt

fromBangor ME

Direct Costs for Wetalnds and T&ESurvey

Meals and Incidentals

GPS Unit er da

Total Subcontractors/Consultants

IV. Other Direct Costs (list by type)

Equipment Cost for Daily Meteorlogical Data Downloads with data logger cell phone service included

III. Travel (Must include purpose and basis on supporting schedule)

TRC- Travel Costs for Meeting with City of Fall River (assume 4 meetings at 152 miles rountrip)

Total Travel

II. Direct Materials (Not Applicable for Feasibility and Design Grants)

Total Direct Materials

Item


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Supporting Schedule - Budget Form

Budget Category Item Description and Basis of Budgeted Cost Amount

Meteorological

Tower

The met tower will be constructed and leased by Meridian Associates. The labor hours on the

work sheet include labor for installation and downloading of data and maintenance (see theirproposal in Optional Attachment No. 4). Costs for the tower include $20,000 for installation,$7,200 to lease the tower for one year, and $7,000 for remote downloading of data (this last costis required as the site is located mile up an unmaintained/unplowed road). The total met towercost is $34,200. A scope of work is provided as an attachment to this application. Of this total$34,200 amount, $7,200 is shown on the budget sheet as a direct cost for the rental of the mettower, and another $4000 is shown as a direct cost on the budget sheet for the data loggerequipment, or a total of $11,200 in direct costs for met tower.

$34,200

MeteorologicalTower TreeClearing

In addition to the costs described above, approximately one acre of trees will be cleared forinstallation of the tower. Meridian Associates will perform this task. Road improvements are notanticipated for the Met Tower.

$2,000

Feasibility StudyInterconnection

Evaluation

TRC power delivery engineers, led by Kevin Fougere, will carefully evaluate how the project can

most economically be interconnected to the utility grid. The analysis will evaluate the feasibilityof using or upgrading existing distribution lines along Yellow Hill Road, and of using the 115 kVlines that run adjacent to the north end of the site. The work will include an assessment of howbest to tie in with the 115 kV line and rough cost estimates for planning purposes of differentoptions. Early understanding of this issue will allow more accurate financial analysis of theproject and aid in better understanding of permitting requirements and development schedule.

$4,800

Feasibility StudyWetlands and T&Especies Survey

National Wetland Survey Maps of the turbine planning area show no wetlands exist except for avery small area along the access road on the south end of the site. To better understand actualextent of wetlands, an on the ground wetlands survey has been budgeted. As the site is verylarge (160 acres), a wetland reconnaissance will be performed to understand in general wherewetlands are located and where they are not. This will assist in developing the conceptualfootprint for the system layout. A more formal wetlands delineation will be conducted later in thedesign stage of the project once other design issues help narrow down the planning area. This

will save cost compared to doing a formal wetlands delineation across all 160 acres. Personnelperforming the wetlands work are all trained experts in wetlands delineation and certified wetlandscientists.

Included in the survey work will be an assessment of threatened and endangered species. Thiswill include coordination with Massachusetts Natural Heritage to understand what species arerepresented on the existing resource mapping of the eastern edge of the site (see Figure No. 3in Attachment No. 6). This will then be followed by a site walkover to assess readily observablespecies. An understanding of the species and/or other T&E species (to the extent they actuallyexist on the site) and its general geographic distribution will help in project planning and layout ofthe site

Direct costs for these surveys (i.e., mileage/expenses) is provided in the direct cost section.

$7,040

Feasibility Study

Wind ResourceAssessment

Wind resources will be assessed in detail in accordance with the requirements in Appendix B-1

of this application. Al Klaussman of TRC will perform this assessment. Mr. Klaussman is anexperienced meteorologist and has performed a wind resource assessment already for thegeneral area of the City (See Optional Attachment No. 9).

7,930

Feasibility Study(Communications)

Evans Associates will be performing the communications interference study. This is importantbecause there are a few communication towers at the top of Copicut Hill. The study will assessimpacts of the project on microwave towers and other types of communication towers to assessif there are critical flaws that would prohibit construction of this project. Preliminary assessmentof the site indicates that it is large enough such that omnidirectioal communication devices canlikely be avoided (i.e., turbines sited > 1,000 feet away). The assessment will confirm this anddetermine if there are critical issues with respect to communications. TRC will assist in GISbased photo documentation of structures to minimize costs on this task. Later, during the designphase of the project, a second analysis may take place to assist in micro siting of turbines to

$4350


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avoid and or mitigate delineated micro wave signal areas.

Feasibility Study(Addressingremainder ofissues required inAppendix B-1 andwriting of Report)

In addition to the information described above, a complete feasibility study will be prepared inaccordance with the requirements of Appendix B-1, and all of this information will be presentedin a feasibility report. This task includes writing of the report and preparing the requiredinformation.

$7,530

Business PlanningThe City of Fall River is committed to this project moving forward, and will perform businessplanning activities that coincide with the development of this report so that it can proceed quicklyafter completion of the feasibility report. These activities will include the following:

Identifying and costing out of other tasks that have to be performed to plan for anddevelop such a project and a greater understanding of risks involved in such anendeavor, and how the city can address those risks.

Compilation of a 3rd party developer/institutional investors to whom an RFP will bemailed.

Community relations work to ensure a full understanding and buy-in from critical localstakeholders.

Discussion with local and regional banks to encourage early understanding of theproposal and attract local participation in the debt financing portion of the project.

Identification of federal and state grant and loan opportunities and preliminarydiscussions with grant and loan makers.

Preliminary development of an RFP to solicit proposals from wind developers andinstitutional investors for constructing, owning, and operating a wind generation facilityin Fall River.

Refinement of the existing pro forma (see Optional Attachment No. 1) to includedevelopment of additional financing structures.

This work will be performed together by Mr. John DeVillars of TRC, who has expertise indeveloping renewable energy projects and via Mr. Ken Fiola of the Fall River Office ofEconomic Development who has planned and helped secure funding for many of the Citysdevelopment projects.

$7,280

Travel Costs $941

Other costs for Wetlands Survey $1050Total $77,121

Application for MA Clean Energy Center Grant, FROED, Fall River

Documents

Transcript of Application for MA Clean Energy Center Grant, FROED, Fall River