GENERAL INFORMATION

 

SECTION 1

 

1.1       PURPOSE

 

The Illinois Department of Commerce and Community Affairs (the Department) administers the Renewable Energy Resources Program (RERP) in order to foster investment in and the development and use of renewable energy resources within the state of Illinois.  The RERP will, to the extent funds are available, fund projects focused on increasing the utilization of alternative energy technologies in Illinois.  The focus of the RERP will include wind, solar thermal energy, photovoltaic cells and panels, dedicated crops grown for energy production, organic waste biomass and hydropower that does not involve new construction or significant expansion of hydropower dams.  This program will not fund projects outside the state of Illinois, or energy projects involving the incineration, burning or heating of waste wood, tires, garbage, general household, institutional and commercial waste, industrial lunchroom or office waste, landscape waste, or construction/demolition debris.  In addition, if a municipal electric utility or electric cooperative does not assess the Renewable Energy Resources Trust Fund charge as established in Article 6 Section 6-4 of the Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997, its customers shall not be eligible for RERP funding.

 

1.2       AUTHORITY AND FUNDING

 

The Department is authorized by Public Act 90-561, Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997, Article 6 Section 6-1 through 6-5, to administer the state’s Renewable Energy Resources Program.  The funding source for this program will be the Renewable Energy Resources Trust Fund.

 

1.3       DEFINITIONS

 

The terms used in this document shall have the meanings set forth below.  Words and terms not defined here, if defined in the Environmental Protection Act [415 ILCS 5], shall have the meanings as defined therein. 

 

"Act" means the Public Utilities Act.

 

"Applicant" means an Illinois unit of state or local government, association, public or private school, college or university, not-for-profit organization, private company or individual(s).

 

"Application" means a request for program funds including the required information, forms and attachments as prescribed by the Department.

 

"Biogas" means a mixture of methane and carbon dioxide produced through bacterial action.

 

"Dedicated Crop" means non-consumable crops grown specifically for energy production.

 

"Department" means the Illinois Department of Commerce and Community Affairs.

 

"Grantee" means the unit of state or local government, association, public or private school, college or university, not-for-profit organization, private company or individual(s) that has been awarded a grant.

 

"Hydropower" means generating electricity by conversion of the energy of running water.

 

"Organic Waste Biomass" means animal manure, municipal solid waste, waste water sludge, or crop residue.

 

"Organic Waste Biomass System" means any device designed to use biogas as a source of fuel to produce electricity.

 

"Performance Period" means the length of time the grantee is required to submit information/data to the Department after the Project Commencement Date.

 

"Photovoltaic Cells and Panels" means semiconductor materials that convert sunlight directly to electricity.

 

"Project Commencement Date" means the date that all necessary procurement is complete, equipment is installed and operational and all project tasks have commenced.  The Project Commencement Date shall not exceed six months after a grant award notice has been issued to the recipient by the Department.

 

"Project Start Date" means the date that the Notice of Grant Award is signed by both the grantee and the Department.

 

"Proprietary, Privileged or Confidential Commercial Information" means any process or design exclusively owned under trademark, patent or in the process of becoming patented.  Or, that has been negotiated to be Proprietary, Privileged or Confidential Commercial Information between the grantee and the Department.

 

"Solar Thermal Energy" means rooftop or ground-mounted panels to collect and transfer heat for space and water heating.

 

"Wind" means the natural and perceptible movement of air parallel to or along the ground.

 

 

GRANT ELIGIBILITY CRITERIA

 

SECTION 2

 

To apply for a grant, a potential grantee must be within the service area of an investor-owned electric or gas utility or a municipal gas or electric utility or electric cooperative that imposes the Renewable Energy Resources and Coal Technology Development Assistance Charge as defined in Public Act 90-561.

 

Eligible applicants shall include:  units of state and local government, associations, public and private schools, colleges and universities, not-for-profit organizations, private companies, and individuals located or doing business within the state of Illinois.

 

2.1       ELIGIBILITY

 

Owners of renewable energy systems may apply for a renewable energy grant under this part by meeting the requirements of either Subpart (A), (B), (C), (D), (E), (F), or (G) of this section and submitting the information required by Section 2.4.  Only one grant per proposed renewable energy system project will be awarded to a grantee.

     

A.   Any wind power system purchased and/or constructed after January 1, 1998, that is rated in accordance with the American Wind Energy Association (AWEA) criteria and is designed to produce in excess of 10 kilowatts of electricity.

     

B.   Any photovoltaic power system purchased and/or constructed after January 1, 1998, that is Underwriters Laboratories (UL) listed or has successfully completed at least one year of field testing and has a rated design capacity in excess of 2 kilowatts of electricity.

     

C.  Any solar thermal water heating system purchased and/or constructed after January 1, 1998, that has been approved by the Solar Rating and Certification Corporation (SRCC) or a comparable organization and is designed to produce in excess of 16 kilowatts or equivalent or contains at least 400 square feet of collectors.

     

D.  Any solar thermal space heating system purchased and/or constructed after January 1, 1998, that has been approved by the Solar Rating and Certification Corporation (SRCC) or a comparable organization and is designed to produce in excess of 32 kilowatts or equivalent or contains at least 800 square feet of collectors.

     

E.   Any energy system purchased and/or constructed after January 1, 1998, that has successfully completed at least one year of field testing.  The system must be specifically designed to use dedicated energy crops to produce electricity.

     

F.   Any organic waste biomass system purchased and/or constructed after January 1, 1998, that has successfully completed at least one year of field testing.  The system must be designed to produce and/or use biogas as a source of fuel to produce electricity.  System and size design will be evaluated by the Department on a case by case basis. 

     

G.  Any hydropower system that will not involve new construction or significant expansion of hydropower dams.  Proposals will be evaluated by the Department on a case by case basis.

 

The total amount of all renewable energy grants issued in the Renewable Energy Resource Program for a given calendar year will be limited to the funds available in the Renewable Energy Resource Trust Fund for that calendar year.  The amount of a renewable energy grant shall not exceed the amount in Section 2.3.

 

2.2       RENEWABLE ENERGY GRANT APPLICATIONS

 

To apply for a renewable energy grant, developers of a renewable energy system should call or write to the address listed in this section, and request a renewable energy grant application.  Renewable energy grants will be awarded according to the schedule in Subpart  (A) and (B) of this section.  Applications shall be written or typed on the Department's current approved forms (refer to Appendix A).

 

A.   The Department shall supply interested entities with a renewable energy grant application package upon request.

 

1.   Grant applications under this program will be accepted on an ongoing basis with grants awarded July 1 through June 30 of each state fiscal year.

     

2.   Grant applications received after May 1 will be considered for funding and, if approved, awarded the next fiscal year, provided funds are available.

     

3.   The grant application must be signed by a duly authorized representative of the entity and shall be submitted as one signed original and three signed          copies.

    

B.   Grant applications will be accepted at the following address:

                 

                        Illinois Department of Commerce and Community Affairs

                        Bureau of Energy and Recycling

                        Alternative Energy Development Section RERP                   

                        325 West Adams, Room 300

                        Springfield, IL 62704-1892

                        217/557-1925                                      TDD 217/785-0211

 

2.3       FUNDING CATEGORIES AND LIMITATIONS

 

The Department may provide up to, but not more than, the following for a single project.

 

Wind                                                   60 percent with a maximum grant of $   300,000

Solar Thermal Energy                        50 percent with a maximum grant of $   150,000

Photovoltaic Cells and Panels           60 percent with a maximum grant of $   300,000

Dedicated Crops Grown for

  Energy Production                           50 percent with a maximum grant of $   150,000

Organic Waste Biomass                   50 percent with a maximum grant of $   550,000

Hydropower                                        50 percent with a maximum grant of $1,000,000

 

2.4       RENEWABLE ENERGY GRANT APPLICATION DOCUMENTATION

 

All applicants shall include documentation of the following:

 

A.   History - a brief history of the applicant, including its legal organization.

     

B.   Narrative Description of the Project - a summary description of the project and the technology employed.

     

C.  Detailed Statement of Work - a description of proposed tasks and deliverables.

     

D.  The Budget - all costs must be directly identifiable and eligible for grant reimbursement.  Expenses must be documentable and traceable to the grant.  Proposed expenditures must be submitted to the Department, on forms prescribed and provided by the Department, and shall include at a minimum:

 

1.   Demonstration through a resolution/financial statement of the source of the applicant's investment.  This is to include all personal contributions and any other public funds received or anticipated to be received by the applicant.

     

2.   Direct costs, shall include:

     

a.   Contractual Services

b.   Commodities

c.   Equipment

d.   All other direct costs

e.   Indirect costs (limited to 10 percent)

 

3.   Total estimated cost.

 

E.   Pertinent Experience - a brief description outlining experience of the applicant or project manager.

     

F.   Proposed Project Timetable - the work program to be carried out under the grant must specify a timeline for major project milestones and/or activities including the approximate start and end date of each activity.

     

G.  Results - a statement of the expected outcome and benefits to the state/applicant as a result of this project in terms of energy production.  Preference will be given to projects that demonstrate the greatest economic and environmental benefits to Illinois residents and businesses.

 

2.5       DEPARTMENT ACTION

 

The Department shall screen all applications to determine whether all requirements of the application package have been met and whether the applicant is eligible for funding.  Applicants shall be notified within 60 business days if the project is eligible for funding.  Applicants shall be notified of deficiencies in their applications and given an opportunity to correct such deficiencies through submission of additional documentation.  Twenty business days will be provided to correct such deficiencies.  If sufficient documentation is not provided by this time, applications will be null and void.

 

Upon submittal of an application, the applicant agrees to the following:

     

A.   State Not Liable - Recipients shall hold the state of Illinois harmless from any and all claims, demands, and actions based upon or arising out of any services performed by recipients or by their agents or employees under a grant agreement.  The Department, by entering into a grant agreement, does not pledge or promise to pledge the assets of the state nor does it promise to pay any compensation to the grant recipients from any moneys of the treasury or the state except such moneys as shall be appropriated and paid to the recipient by the Department.

     

B.   Indemnity - The recipient agrees to assume all risks of loss and to indemnify and hold the Department, its officers, agents and employees, harmless from and against any and all liabilities, demands, claims, damages, suits, costs, fees, and expenses, incidents thereto, for injuries or death to persons and for loss of, damage to, or destruction of property because of the recipient's negligence, intentional acts or omissions.  In the event of any demand or claim, the Department may elect to defend any such demand or claim against the Department and will be entitled to be paid by the recipient for all damages.

     

C.  Insurance - The recipient shall provide Workers' Compensation Insurance or the same, as required, and shall accept full responsibility for the payment of Unemployment Insurance, premiums for Workers' Compensation, Social Security, and retirement and health insurance benefits, as well as all income tax deductions required by law for its employees who are performing services specified by the grant agreement.

     

D.  Access - Recipients shall permit any agent authorized by the Department, upon presentation of credentials, access to the renewable energy project site during normal business hours, for which a grant has been applied for.

     

E.   The recipient shall return to the Department any and all funds that are determined by the Department to have been spent in violation of the grant agreement.

 

2.6       INELIGIBLE GRANT APPLICANTS

 

This program will not fund projects outside the state of Illinois, or energy projects involving the incineration, burning or heating of waste wood, tires, garbage, general household, institutional and commercial, industrial lunchroom or office waste, landscape waste, or construction or demolition debris.  In addition, if a municipal electric utility or electric cooperative does not assess the Renewable Energy Resources Trust Fund charge as established in Article 6 Section 6-4 of the Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997, its customers shall not be eligible for RERP funding.

 

2.7       AUTHORITY/APPROVALS

 

The applicant's signature on the application cover sheet, Appendix A, is its certification that all authorizations required to perform the project have either been obtained or will be obtained no later than 60 days following the project start date set forth in the Notice of Grant Award issued by the Department.

 

2.8       LEGAL COMPLIANCE           

 

The applicant's signature on the application cover sheet is its certification that the project complies with all applicable state, federal and local environmental and zoning laws, ordinances and regulations and that all permits, licenses, etc., required to perform the project have either been obtained or will be obtained no later that 180 days following the project start date set forth in the Notice of Grant Award.

 

 

GENERAL PROGRAM INFORMATION

 

SECTION 3

 

3.1       PAYMENT SCHEDULE       

 

The grant agreement will specify the conditions of payment and the payment schedule.  The Department reserves the right to determine the appropriate payment structure on a project specific basis.

 


3.2       REPORTING REQUIREMENTS/PROJECT MONITORING        

 

Grantees will be required to submit progress and expenditure reports in accordance with the requirements of the grant agreement.  The Department reserves the right to structure reporting requirements on a project specific basis.  The Department project manager will monitor the grantee's compliance with the terms of the grant agreement.

 

3.3       GRANT DURATION/PERFORMANCE PERIOD   

 

The grant term/performance period will be determined on a project specific basis.  Grantees will be required to certify the Project Commencement Date to the Department.  For the purposes of these guidelines, the "Project Commencement Date" is the date on which all necessary procurement is complete, equipment is installed and operational and all project tasks have commenced. 

 

Typically, the Department requires 12 months of performance, following the Project Commencement Date.  The Department reserves the right to require a longer performance period based upon the nature of the proposal.

 

3.4       FREEDOM OF INFORMATION ACT/CONFIDENTIAL INFORMATION

 

Funded proposals are subject to disclosure, in response to requests received under provisions of the Freedom of Information Act (5 ILCS 140/1 et. seq.).  Information that could reasonably be considered to be proprietary, privileged or confidential commercial or financial information should be identified as such in the proposal.  The Department will maintain the confidentiality of that information only to the extent permitted by law. 

 

3.5       OWNERSHIP/USE OF EQUIPMENT         

 

The grant agreement will specifically prohibit the sale, lease, transfer, assignment, or encumbrance of any equipment or material purchased with grant funds, without the express written approval of the Department for the duration of the grant term.  In the event of a grantee's failure to comply with this requirement, the agreement will provide that the Department may, at its discretion, require the grantee to return all grant funds provided by the Department, require the grantee to transfer to the state ownership of  equipment and material purchased with grant funds and bar the grantee from consideration for future funding.  The Department reserves the right to require the grantee to give it a purchase money security interest in equipment purchased with grant funds for the duration of the grant term.

 

3.6       DISSEMINATION OF INFORMATION/TECHNOLOGY TRANSFER      

 

Grantees will be contractually required to allow the Department access to the project site and the ability to obtain, publish, disseminate or distribute any and all information obtained from the project (except any data or information that has been negotiated as being confidential or proprietary), without restriction and without payment or compensation by the Department.

 

 


APPLICATION PROCESS

 

SECTION 4

 

4.1       PROPOSAL FORMAT

 

The proposal should be prepared in the format described in Appendix B.  The proposal should include the information requested in Appendix A, B, and C.  Appendix A should be completed and signed by the authorized official or owner.  The proposal should not exceed 10 pages in length.

 

4.2       SUBMITTAL INSTRUCTIONS        

 

One original and three copies of the completed cover sheet and proposal should be mailed or delivered (fax/e-mail submissions will not be accepted) to the address in Section 2.2 (B).

 

4.3       PROPOSAL EVALUATION              

 

Proposals may be submitted on an ongoing basis as long as funds are available.  All eligible proposals will be independently evaluated based on the evaluation criteria.  Evaluation criteria have been developed to assist the Department in identifying those projects that display the most potential for achieving the goals and objectives of the Renewable Energy Resources Program.  The Department reserves the right to adjust the evaluation criteria to reflect any unique considerations or requirements of other alternative energy development funding sources.  Applicants will be advised of any such adjustments.

 

4.4       REJECTION OF APPLICATIONS   

 

The Department reserves the right to reject any proposal that does not comply with the requirements of these guidelines and approved program initiatives.  Unsuccessful applicants who wish to discuss the evaluation of their proposal should submit a written request to this effect to the address listed in Section 2.2 (B).

 

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


APPENDIX A: Application Cover Page

Application for Grant Funding

 

A.1  Owner Information

 

____________________________________________________________________________Name of Applicant (individual, governmental agency or organization)                                                     ____________________________________________________________________________

Street Address

 

____________________________   ______   __________________   _____/______________

City                                                    State      9 digit Zip Code              Telephone Number

 

________-________-________       _______-__________________      ___________________

SSN (only if individual applicant)      FEIN                                                    County of Project

 

____________________________________________________________________________

Project Location/Address (if different from above)                                         

 

________________________________   _____/_______________   _____/_______________

Project Manager/Contact Person               Telephone Number             Fax Number

 

-----------------------------------------------------------------------------------------------------------------------------

A.2  Verification of Renewable Energy Resources and Coal Technology Development Assistance Charge must be provided.

 

Please attach a letter from your utility stating that the applicant is serviced by an              invester-owned/municipal gas or electric utility or electric cooperative which imposes the Renewable Energy Resources and Coal Technology Development Assistance  Charge as defined in Public Act 90-561.  The Department will verify this information before a grant is issued to the applicant.                                                                                        

-----------------------------------------------------------------------------------------------------------------------------

B.  System Information

 

________________        ______________         ________________         _________________

Make                                Model                           Warranty Period                 Year of Manufacture

 

____________________                    ________________________

Date of purchase                                Date the system was installed

 

____________________________________________________________________________

Name, Address, and Telephone Number of entity who performed or will perform the installation

 

-----------------------------------------------------------------------------------------------------------------------------

C.  Type of Project   (Check the appropriate box for proposed project.)

 

q     Solar Thermal

q     Photovoltaic Cells and Panels

q     Wind

q     Organic Waste Biomass

q     Dedicated Crops

q     Hydopower

----------------------------------------------------------------------------------------------------------------------------

 


APPENDIX A: (cont.)

 

-----------------------------------------------------------------------------------------------------------------------------D.  Organization Legal Status

 

q     Individual

q     Owner of Sole Proprietorship

q     Partnership

q     Tax-exempt hospital or

  extended care facility

q     Governmental entity

q     Corporation providing or billing

  medical and/or health care services

q     Corporation not providing or

  billing medical and/or health

  care services

q     Non resident alien individual

q     Estate or legal trust

q     Foreign corporation, partnership estate or trust

q     Other not-for-profit organization

q     Other

-----------------------------------------------------------------------------------------------------------------------------E.  State Legislative Districts

 

Senate District ____________________      Representative District ___________________

 

----------------------------------------------------------------------------------------------------------------------------

F.  Financing Information

 

Grant Request        $________________    Applicant Investment (in-kind)  $_______________

 

Total Project Cost   $________________    Applicant Investment (cash)     $_______________ ----------------------------------------------------------------------------------------------------------------------------G.  Applicant Certification

            The applicant certifies that:

 

Ÿ         It is not in violation of the prohibitions against bribery of any officer or employee of the State of Illinois as set forth in 30 ILCS 505/10.1;

Ÿ 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);

Ÿ It is not in violation of the Educational Loan Default Act (5 ILCS 5/33 E-3 and 5/33 E-4); and

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

 

 

___________________________________              ___________________________________

Authorized Official/Owner (signature)                        Project Manager (signature)

 

___________________________________              ___________________________________

Typed/Printed Name                                                  Typed/Printed Name

 

___________________________________              ___________________________________

Title                                          Date                           Title                                           Date

 


APPENDIX B

Proposal Requirements

 

 

B.1      Maximum Grant Award

 

The maximum grant awards are indicated in Section 2.3.  The  actual amount of the grant will be determined by the Department based upon availability of Renewable Energy Resources Program funds and the Department's evaluation of the proposed project in accordance with the Evaluation Criteria set forth herein.

 

B.2      Required Applicant Investment

 

The applicant shall provide sufficient funds and resources to complete the project.  Grant limitation amounts and required matching requirements are further delineated in Section 2.3.  Department funds shall be used solely for the purchase and installation of renewable energy systems.  Applicants may not use overhead charges or indirect costs greater than 10 percent to satisfy their matching requirement.

 

B.3      Project Proposal Format

 

The following information must be provided in the proposal:

 

Completed Cover Sheet (use format set forth in Appendix A);

History of the applicant;

Narrative description of the project, including project location, objectives, anticipated accomplishments, and the technology to be employed;

Detailed statement of work by task and description of deliverables;

Project Budget (to be completed according to the format set forth in Appendix C); amount of the Renewable Energy Resources Program grant funds requested, applicant investment/contribution to the project, and other sources of funding/letters of support;

Pertinent experience of applicant or project manager;

Proposed project timetable (project milestones, completion of deliverables); and

Results of the project including economic and environmental benefits to Illinois residents and businesses (the Department may be available to assist in this assessment).

 

B.4      Evaluation Criteria for Proposed Projects          

 

            1.  Overall Quality of Proposal