bpu eda 2013 lschp-fc rolling solicitation final clean 1-17-13large scale chp-fuel cells program...

Solicitation for

The Large Scale CHP-Fuel Cells Program (2.0)

Issued by: The New Jersey Economic Development Authority and

The New Jersey Board of Public Utilities

January 17, 2013

Large Scale CHP-Fuel Cells Program Final Version: 1/17/13

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Table of Contents

Executive Summary .......................................................................................................... 3 1. Program Objective ...................................................................................................... 5

1.1 About the EDA ......................................................................................................... 5 1.2 About the BPU and it’s OCE .................................................................................... 6

2. Program Eligibility ..................................................................................................... 7 2.1 Eligibility Requirements ........................................................................................... 7 2.2 Eligible Use of Funds.............................................................................................. 10 2.3 Confidentiality ........................................................................................................ 11

3. Program Summary ................................................................................................... 12 3.1 Program Incentives and Funding Structure............................................................. 12 3.2 Program Terms and Conditions .............................................................................. 13 3.3 Program Fees .......................................................................................................... 13

4. Application and Review Process .............................................................................. 14 4.1 Application Instructions .......................................................................................... 14 4.2 Application Review ................................................................................................ 15 4.3 Proposal Scoring Criteria ........................................................................................ 17 4.4 Changes in Proposed Project .................................................................................. 19

5. Award of Funding ..................................................................................................... 20 5.1 Funding Disbursements .......................................................................................... 20 5.2 Post-Award Reporting Requirements ..................................................................... 20

6. Glossary ...................................................................................................................... 21 7. Solicitation Appendix ............................................................................................... 22 APPENDIX A: DUE DILIGENCE CHECKLIST ..................................................... 24 APPENDIX B: CONTENTS OF PROPOSAL............................................................. 25 APPENDIX C: CERTIFICATIONS ............................................................................. 61 APPENDIX D: SCORING CRITERIA ....................................................................... 67 APPENDIX E: NJ PROTOCOLS ................................................................................ 69 APPENDIX F: GRANT AGREEMENT ..................................................................... 71


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DOCUMENT REVISION HISTORY

Large Scale CHP-Fuel Cells Program

Version Number Date of Issue Brief Description of Changes

1.0 4/25/12 Solicitation Initial Release

2.0 1/17/13 Open, Rolling Solicitation


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Executive Summary Program Summary: In collaboration with the New Jersey Board of Public Utilities (“BPU” or “the Board”), through its Office of Clean Energy (OCE), the New Jersey Economic Development Authority (“EDA”) will act as administrator of the Large Scale CHP-Fuel Cells program (LSCHP-FC) (BPU and EDA collectively known as the “Agency”). The program will offer assistance to support large sized CHP projects including stand-alone qualified fuel cells. This program will be designed to assist those implementing a combined heat and power or combined cooling heat and power (CHP) or fuel cell (FC) project with an electric generating capacity of greater than one megawatt (MW) serving a governmental, commercial, institutional, or industrial electricity customer in New Jersey. This program is in alignment with the goals of the New Jersey Energy Master Plan. The Christie Administration is committed to developing 1,500 MW of CHP generation over the next 10 years. Any project equal to or less than one MW can apply for a rebate under the New Jersey Clean Energy Program (NJCEP) small CHP/FC program at http://www.njcleanenergy.com/commercial-industrial/programs/combined-heat-power/combined-heat-power. Eligibility: New Jersey-based government (Federal, State or Local), commercial, institutional or industrial entities (including 501c(3)) that meet all program Solicitation requirements, which include supporting Large Scale CHP and Fuel Cell projects with installed capacity greater than one MW. Available Program Funding: The amount available for grant funding under this Solicitation is $25 million. The program will accept applications on a first-come, first-serve rolling basis. There will be a two-part application process. A technical application must be submitted and reviewed by the BPU followed by EDA’s online application. EDA and the BPU will be working on developing a new solicitation for 2014. All funding for this Solicitation and subsequent solicitations is subject to availability and BPU approval of the annual Clean Energy Programs and Budgets and is further subject to State appropriations law. Program Incentives: Total funds awarded are subject to a maximum of $3,000,000 per project for CHP and $3,000,000 per project for FC with or without waste heat utilization. There are tiered incentives for this program. Program incentives for CHP Projects are as follows: CHP Incentives: CHP greater than 1MW to 3 MW $0.55 per Watt CHP greater than 3 MW $0.35 per Watt Maximum Project Incentive $3,000,000 Maximum percent of project cost 30%


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Program incentives for Fuel Cell Projects are as follows: Fuel Cell Incentives: FC greater than 1MW – with waste heat utilization

$2.00 per Watt

FC greater than 1 MW – without waste heat utilization

$1.50 per Watt

Maximum Project Incentive $3,000,000 Maximum percent of project cost 45% Funding Disbursements: Payments will be based upon meeting mutually agreed upon milestones, with the goal of full funds disbursement within two years from the award closing date. Although payment terms will be customized to each project, there will be three main disbursements.

Program Fees: EDA will charge no application or other administrative fees in association with the LSCHP-FC Program. However, a fee will be due and payable to the NJ Division of Taxation for processing of a Tax Clearance Certificate in the amount of $75 for standard processing; and $200 for expedited processing (response within three business days). This fee must be provided to the EDA along with the technical application. Application and Award Process: Interested applicants for this open solicitation are required to first complete the technical application. If found to be technically eligible, the applicant will then be required to complete EDA’s standard online application with financial information, including all required supporting attachments. (See Appendix A -- Due Diligence checklist for a complete list of all items to be submitted). Both the technical application and the EDA standard online application can be found on the EDA website at www.njeda.com/lschp-fc. All complete technical applications will be reviewed and scored on a first come, first serve rolling basis by an evaluation committee. Those applications meeting the minimum score requirement will undergo financial and business due diligence to be performed by EDA. Upon receiving positive review, applications will then go before the BPU Board for consideration. The EDA will administer the financial review, closing, and disbursement of funds to the Awardees. The BPU will support the program technical review and performance monitoring.


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1. Program Objective The objective of the Large Scale Combined Heat and Power – Fuel Cells (“LSCHP-FC”) program is to provide financial support in the form of incentives to support large sized CHP projects including stand-alone qualified fuel cells. The program will assist those implementing a combined heat and power or combined cooling heat and power (CHP) or fuel cell project with an electric generating capacity of greater than one megawatt (MW) serving a governmental, commercial, institutional, or industrial electricity customer in New Jersey. This program will ultimately benefit the New Jersey consumer by providing assistance to support the deployment of energy efficient measures in commercial and industrial buildings in New Jersey for entities that would not be able to self fund absent this product. The goal of the Large Scale Combined Heat and Power-Fuel Cells Program is to support the development, design, and construction operation of high efficiency governmental, commercial, institutional and industrial entity (including public and non-profit entities) Combined Heat and Power and Fuel Cell projects in New Jersey. The program objectives are aligned with those of the State’s Energy Master Plan (“EMP”), which includes:

• Increasing energy efficiency to reduce energy cost and consumption for consumers, businesses and government;

• Reducing reliance on imported energy; • Improving the reliability of electricity and fuel supply, and the delivery of energy

services; • Reducing the impacts of energy production and use on the environment; • Developing 1,500 MW of CHP generation over the next 10 years.

1.1 About the EDA The New Jersey Economic Development Authority (EDA) is an independent, self-supporting State entity dedicated to broadening New Jersey’s economic base by building vibrant, diverse communities, creating and maintaining jobs, and providing businesses and nonprofits with the necessary financial and technical support to grow and succeed. EDA is assisting the BPU in administering this Solicitation and will be responsible for, among other things, receiving the applications, reviewing applications for completeness and evaluating applications for financial capacity to undertake the project.


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1.2 About the BPU and it’s OCE The Board of Public Utilities is a regulatory authority with a statutory mandate, pursuant to N.J.S.A. 48:2-1 et seq. to ensure safe, adequate, and proper utility services at reasonable rates for customers in New Jersey. As set forth at N.J.S.A. 48:3-49 et seq., the Electric Discount and Energy Competition Act (the "EDECA " or the "Act"), the BPU is directed to establish funding levels and programs that promote and advance energy efficiency and Class I renewable energy programs. These programs are to provide environmental benefit over and beyond those of the "standard offer programs," taking into consideration lost opportunities; making energy services more affordable for low income customers and eliminating subsidies for programs that can be delivered in the marketplace. N.J.S.A. 48:3-60a (3). In 2003, the New Jersey Board of Public Utilities established the Office of Clean Energy to administer New Jersey's Clean Energy Program. New Jersey's Clean Energy Program promotes increased energy efficiency and the use of clean, renewable sources of energy including solar, wind, and sustainable biomass. The result for New Jersey is a stronger economy, less pollution, lower costs, and reduced demand for electricity and natural gas. The Board, as part of its responsibilities under EDECA through the 4-year Comprehensive Resource Analysis for Energy Efficiency and Renewable Energy and its annual NJCEP Budget process including the approval of the compliance filings, has determined that CHP and FC are eligible energy efficiency activities within the NJCEP.


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2. Program Eligibility The following are eligibility requirements for the LSCHP-FC program. Please review thoroughly to ensure compliance prior to submitting an application to the EDA for this program.

2.1 Eligibility Requirements

• CHP or Fuel Cell system must be greater than 1MW to apply • The CHP or Fuel Cell system must be installed in New Jersey • The applicant must be a contributor to the Societal Benefits Charge fund (If located in

one of the municipal utility or rural cooperative areas the NJBPU interconnection regulations at N.J.A.C. 14:8-5 do not apply. You must apply to the individual municipal or rural cooperative for interconnection.)

• Minimum 3 years in business (Operating entity: Defined as either the applicant or majority owner(s) of the applicant, provided that the majority owner(s) is a business).

• May not be fueled by biogas or hydrogen imported from out of state unless and until that process is determined to be sustainably grown and harvested by the New Jersey Department of Environmental Protection (NJ DEP).

• Only stationary CHP or Fuel Cell equipment installed on the customer side of the meter is eligible. This is inclusive of prepackaged generating systems.

• The proposed system must be capable of meeting all requirements of the NJ DEP for the proposed equipment and be in the process of obtaining an air permit. All accessory and exhaust after treatment equipment and associated capital and operating costs required to meet emissions limits must be included in the proposal.

• The proposal must provide an emissions profile including emissions associated with the offset of grid electric power and fossil fuel for thermal energy that is displaced by the proposed CHP plant according to the emissions factors provided by the New Jersey Department of Environmental Protection. These factors should be used to calculate the base emission factors which the CHP system emission factors would be compared to. (See Appendix E).

• Equipment must be sized to serve all or a portion of the electrical load at the customer site. The proposed generating system is sized to meet the customer’s electrical loads for demand-metered customers – no more than 100% of historical annual consumption or peak demand. Historical annual consumption is for the most recent (12) month period. New additions or expansions to existing facilities will be considered – detailed information of load assumptions must be submitted with the application.

• Equipment must be new, commercially available and permanently installed. The following are not eligible for incentives: renewable source-fueled systems (Renewable fueled projects must be submitted to the Renewable Energy Market Manager through the REIP Program under the NJCEP); portable and emergency backup power systems; used,


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refurbished, temporary, pilot or demonstration equipment; systems that use diesel fuel, other types of oil or coal for continuous operation.

• Expansion of an existing facility with new equipment is also eligible for incentives, however, only the incremental expansion would be eligible for the incentive. The combined capacity of the proposed expansion and existing generators are held to sizing requirements as determined by the NJDEP.

• CHP systems with waste heat utilization must achieve annual system efficiency of at least 65% lower heating value (LHV) and fuel cells without heat recovery must achieve annual system efficiency of at least 45% higher heating value (HHV). The annual system efficiency shall be based on higher heating value and calculated from the total prime mover output in Btu plus the total heat recovered for useful purposes in Btu divided by the higher heating value of the fuel input in Btu. Mechanically-developed energy may be included in the efficiency evaluation.

• CHP or Fuel Cell system warranty must be all-inclusive for at least ten years. The warranty must cover the major components of the system eligible for the incentive, to protect against breakdown or degradation in electrical output of more than ten percent from the originally rated electrical output. The warranty shall cover the full cost of repair or replacement of defective components or systems, including coverage for labor costs to remove and reinstall defective components or systems. In the event the system warranty does not meet program requirement, customer must purchase an extended warranty or a ten year maintenance/service contract. The cost of the ten year warranty or service contract may be considered as part of the cost of the project.

• Third party ownership (or leased CHP equipment) such as those procured under Power Purchase Agreements, are permitted within the program with the following provisions: Projects are subject to the same 10 year warranty requirements stated above and to ensure the equipment remains on site and is in operation for the term of the agreement, a binding agreement is required between the parties. A copy of this agreement shall be provided to the EDA prior to commitment of incentives. The agreement should state that the equipment could be transferred to new owners should the property be sold or otherwise have a buyout provision so the equipment remains on site and stays operational so the projected energy savings can accrue. The intent is to provide incentives for generating equipment, which is installed and functioning for the duration of its useful life. Under the Program, only permanently installed equipment is eligible for incentives and this must be physically demonstrable upon inspection, prior to receiving an incentive. This can be demonstrated by electrical, thermal and fuel connections in accordance with industry practices for permanently installed equipment and be secured to a permanent surface (e.g. foundation). Any indication of portability, including but not limited to temporary structures, quick disconnects, unsecured equipment, wheels, carrying handles, dolly, trailer or platform will deem the project ineligible for the program.

• All companies must be in compliance with all applicable laws and permits. Applicants must obtain any required permits and comply with applicable Federal, State and Municipal Laws, Codes and Regulations for work performed under this award. Applicants must not have any unresolved environmental violations, past due unresolved Federal financial obligations, past due unresolved obligations to the State of New Jersey, and must be current in all payment of all state and local taxes at time of application submittal and through the entire term of any financing received by Applicant.


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• Must be able to obtain all applicable federal, state or local permits including interconnection approval from the local electric distribution company (EDC).

• All applications must include an Application of Tax Clearance and a check payable to “the NJ State Division of Taxation” in the amount of $75 (or $200 for expedited service). The EDA shall receive, prior to closing, a Tax Clearance Certificate for the Applicant issued by the New Jersey Division of Taxation not more than 90 days old at the date of closing.

• Additional technical evaluation points will be available for projects with blackstart capability.


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2.2 Eligible Use of Funds LSCHP-FC funds are to be used to support the energy efficiency governmental, commercial, institutional, and industrial project costs that meet specified program requirements. Funds may support project –specific, fixed asset purchases. New installations are eligible. Expansions of an existing facility with new equipment are also eligible. Equipment must be commercially available and permanently installed. The funds for CHP Facility Installation and Upgrade projects may not be used for: program soft costs other than those listed below; and equipment purchases, research and development, or demonstration project activities for technologies that are not commercially available. Soft costs that are permissible include: SOFT COSTS - PROJECT DEVELOPMENT Project Planning Fees Architectural Design Fees Architectural Consultants (e.g., interior design, acoustical) Engineering Fees Redesign Fees (if applicable) Land Acquisition Costs Site Survey/Site Preparation Project Administration-Internal SOFT COSTS - CONSTRUCTION RELATED Permits/Fees Interconnection Study Fees/Utilities Construction & Liability Insurance Performance Bond Relocation Costs (including transition) Real Estate Property Taxes During Construction Appraisal (for construction loan) Owner's Representative/Project Management Financing Costs (if obtaining long term financing) Closing Legal Title Insurance Environmental Assessment Closing Costs Lender's Inspection Project Contingency (Miscellaneous) The following are not eligible for incentives: renewable source-fueled systems (renewable fueled projects must be submitted to the Renewable Energy Market Manager through the Renewable Energy Incentive Program under the NJ Clean Energy Program); portable and emergency backup power systems; used, refurbished, temporary, pilot or demonstration equipment; systems that use diesel fuel, other types of oil or coal for continuous operation.


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Payments under the lease agreement are not an eligible use. Grant funding may only be used for upfront lease costs (i.e., the first and last month’s payment and any security deposits).

2.3 Confidentiality Applications received will be reviewed only by the Agency and by selected external reviewers. All proposals submitted will be subject to requests for disclosure, including but not limited to, a request pursuant to the Open Public Records Act ("OPRA"), N.J.S.A. 47:1A-1 et seq. If the applicant believes that information contained in its proposal merits confidential treatment pursuant to OPRA, any such purportedly confidential information submitted to the Board or EDA shall be specifically identified and marked by the applicant and submitted to the Board’s Custodian in compliance with the Board's regulations at N.J.A.C. 14:1-12 et seq.


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3. Program Summary The following are the key parameters of the LSCHP-FC program.

3.1 Program Incentives and Funding Structure The LSCHP-FC program can provide support of up to a maximum of $3,000,000 per project for CHP and $3,000,000 per project for FC with or without waste heat utilization. CHP Incentives: There is a tiered incentive structure for this program. CHP incentives are as follows: CHP Incentives: CHP greater than 1 MW to 3 MW $0.55 per Watt CHP greater than 3 MW $0.35 per Watt Maximum Project Incentive $3,000,000 Maximum percent of project cost 30% Fuel Cell Incentives: Program incentives for Fuel Cell Projects are as follows: Fuel Cell Incentives: FC greater than 1MW – with waste heat utilization $2.00 per Watt FC greater than 1 MW – without waste heat utilization $1.50 per Watt Maximum Project Incentive $3,000,000 Maximum percent of project cost 45% Funding Structure: Payments will be based on meeting mutually agreed upon milestones which may include equipment orders, equipment delivery, system installation and/or commencement of operation. There will be three main disbursements:

1) At time company makes non-refundable deposit on equipment (up to 30% of amount awarded)

2) Upon equipment delivery (up to 70% of amount awarded, but not to exceed 90% of total amount awarded when combined with the prior disbursement)

3) Upon system installation (remainder awarded)


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3.2 Program Terms and Conditions The applicant must provide evidence of source of funds needed to complete project. All projects will be reviewed to ensure alignment with Program requirements. Additionally, Applicants must obtain any required permits and comply with applicable Federal, State, and Municipal Laws, Codes, and Regulations for work performed under this award. An Awardee will not be able to receive funding under another State and/or Federal-funded program which, together with the estimated amount of the Grant, exceeds fifty percent (50%) of the total cost of the CHP or Fuel Cell Project. Awardee must obtain a firm commitment for a cash match of a minimum of fifty percent (50%) of the total project costs from non-State and non-Federal derived sources. All projects must be in compliance with all applicable laws. Applicants must not have any unresolved environmental violations, past due unresolved Federal financial obligations, past due unresolved financial obligations to the State of New Jersey, and must be current in all payment of all state and local taxes at time of application submittal and through the entire duration of project funding received by Applicant. Construction projects will be subject to prevailing wage requirements pursuant to P.L. 2009, c. 203, which amends P.L. 2009, c. 89, as well as the prevailing wage regulations promulgated by the New Jersey Department of Labor and Workforce Development pursuant to P.L. 1963 c. 150 as amended, and N.J.A.C. 17:27-1.1 et seq. and Affirmative Action rules. All applications must include an Application of Tax Clearance and a check payable to “the NJ State Division of Taxation” in the amount of $75. The EDA shall receive, prior to closing, a Tax Clearance Certificate for the Applicant issued by the New Jersey Division of Taxation not more than 90 days old at the date of closing. The CHP or Fuel Cells project will be monitored for a five year period to ensure performance goals are met. If performance goals are not met during this time period, this may result in an event of default under the grant Agreement, a copy of which is attached hereto in substantially final form. Your application must articulate any exceptions or objections that you may have to this form of agreement. The Agency reserves the right to make any changes to the form if doing so is deemed to be in the best interests of the EDA and/or the BPU. The term of the grant agreement will be five years.

3.3 Program Fees EDA will charge no application or other administrative fees in association with the LSCHP-FC Program. However, a fee will be due and payable to the NJ Division of Taxation for processing of a Tax Clearance Certificate in the amount of $75 for standard processing; and $200 for expedited processing (response within three business days). This fee must be provided to the EDA along with the technical application.


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4. Application and Review Process

4.1 Application Instructions The EDA will begin accepting program applications beginning January 17, 2013. All proposals must include all of the information requested in the Solicitation and proposal instructions. In addition to the online submission, applicants should provide 2 copies of requested documentation as instructed in Appendices A and B on a CD-Rom or USB flash drive via postal or other delivery service to the following address: Large Scale CHP-Fuel Cells Application New Jersey Economic Development Authority 36 West State Street P.O. Box 990 Trenton, NJ 08625 Applications received by the EDA will be logged and time stamped.


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4.2 Application Review Applications will be accepted and reviewed in a two-part process - a technical eligibility review followed by a financial and underwriting review. Step One: Technical Review Applicants must first complete and submit the technical application. This application can be found online at www.njeda.com\lschp-fc and is also included in Appendix B. The technical application will be reviewed by BPU staff on a rolling basis to ensure alignment with program requirements.

Those applications receiving a positive technical review by the BPU staff will then be reviewed by a CHP-Fuel Cells Evaluation Committee expected to be comprised of EDA, BPU and New Jersey Department of Environmental Protection (DEP) representatives. The Evaluation Committee may also include Federal Department of Energy (DOE) or Environmental Protection Agency (EPA) subject matter experts, but not contractors working for the DOE or EPA in these areas. The CHP-Fuel Cells Evaluation Committee will review the applicant projects based upon the evaluation scoring criteria that follows. Those projects receiving the minimum threshold score of “good” in all areas by the Evaluation Committee will be deemed to be technically eligible under the program, and these applicants will be sent a letter issued by the BPU Office of Clean Energy confirming technical eligibility requirements have been met.

Step Two: Financial/Underwriting Analysis Those Applicants receiving a technical eligibility letter will be instructed to complete and submit EDA’s online application, including all required attachments within 30 days or will lose priority status in review to those who do submit all required information on time. This application can be found online at www.njeda.com\lschp-fc.

EDA applications will be evaluated by EDA staff on a rolling basis. In the event that after review, the EDA application is deemed incomplete by the EDA, EDA will send the applicant written notice indicating what items must be submitted to render it complete. An applicant shall have 30 days from receipt of the written notification of incompleteness to file such additional information as may be required by the EDA for a completed application. If an applicant fails to file the additional information within the 30 days, the filing date for that application shall be the date that such additional information is received by the EDA. If the additional information is filed within the 30 days and is satisfactory to the EDA, the filing date for that application shall be the initial date that the EDA application was filed with the EDA. The EDA applications will be subject to an extensive financial and due diligence analysis performed by EDA staff according to the process outlined below including, but not limited to, reference calls and verification of supplied documentation.


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Applicant proposals must include standard business information, as well as project information specific to this program. In cases where there is partnering, financial data must be provided for all partner companies. Note: The EDA and BPU reserve the right to request other supporting documentation from the Applicant to support approval of an award. All documents submitted by the Applicant are non-returnable to the Applicant. The EDA’s findings will be provided in an underwriting document for consideration by the BPU Board. BPU Board Consideration Applicants successfully meeting all the technical eligibility requirements of the program and receiving a positive recommendation from the CHP-Fuel Cells Evaluation Committee and EDA underwriting due diligence process will be presented to the BPU Board for consideration. BPU Board approval is required for all awards. Funds are expected to be committed by the BPU Board on a first-come, first-serve basis to the applicants which have successfully completed the full application process and whose applications are determined to be both technically and financially eligible for the program. BPU reserves the right to reject all applications for any reason and to terminate this Solicitation.


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4.3 Proposal Scoring Criteria

Large Scale CHP-Fuel Cells -- SCORING CRITERIA

The following scoring criteria will be utilized by the Evaluation Committee to assist in determining which projects to recommend for funding:

25% The project’s readiness to proceed/efficiency 10% The ability to create or maintain jobs in New Jersey.

30% Potential reduction in greenhouse gas emissions, criteria pollutants 35% Total energy to be created or saved

Point Score Evaluation Sheet

Grant Solicitation: The Large Scale CHP-Fuel Cells Program

Project:

Date:

Project Location:

Applicant/State Entity:

Evaluator:

Signature:

The evaluation criteria and relative weights are based on the program requirements and objectives.

Each score must consist of a whole number. Decimals and fractions are not permissible. The score should reflect the extent to which grant proposal meets Solicitation criteria. There are four main categories to score: Project Readiness to Proceed/Efficiency, Job Creation and Retention, Greenhouse Gas Emissions and Criteria Pollutant Reduction and Energy Created or Saved. Within these categories are several individual metrics as listed in the table below. Each metric is given a score within a range of 0 to 5. The average score for the category is calculated, and then multiplied by the relative weight which produces a subtotal score. The subtotal scores of each category are then added to derive a final score.


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The Evaluation Committee will review and recommend projects to be funded based upon the Applicant’s ability to meet the Evaluation Criteria set forth within the Solicitation. Projects must receive a minimum average score of “good” in all areas in order to move forward for consideration.

Evaluation Criteria Avg.

Score Weight Subtotal

Project Readiness to Proceed/Efficiency

25%

Ability to create or retain jobs 10% Potential reduction in greenhouse gas emissions/criteria pollutants

30%

Total energy to be created or saved

35%

Scoring Sheet Score Project Preparedness/Efficiency: Sources of Funding Permit Standing -- Completed/Pending Construction Schedule (Dates Proposed to Start/Finish Project) Management Expertise System Efficiency Project Clarity Program Goals Project Preparedness / Efficiency Criteria Average Score: Job Creation and Retention: Number of Construction Jobs to be created (higher points) Number of Operations Jobs to be created retained (higher points) Jobs retained or secured by existence of plant Job Creation and Retention Average Score: Greenhouse Gas (GHG) Emissions / Criteria Pollutant Reduction: Greenhouse Gas (GHG) Emissions Annual tons of Carbon Dioxide Equivalent (CO2e) reduced/$1000 requested

Reduction in Criteria Pollutants Emissions Annual tons of criteria pollutants reduced/$1000 requested

GHG Emissions Reduction and Criteria Pollutant Reductions Average Score: Energy Created or Saved: Dollars Requested/Annual electric reduction (mwhKW) Dollars Requested/ Annual thermal reduction (MMBtu) Energy Savings Average Score: Final Score Additional Comments:

Scoring Legend 5- Excellent 2 - Fair 4 – Very Good 1 – Poor 3 – Good 0–Not Addressed

NA–Not applicable


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4.4 Changes in Proposed Project Projects are expected to be designed and proposed as feasible, viable projects that can be permitted in all relevant jurisdictions. The Agency, however, recognizes that some project changes may be required in order to be consistent with the results of any environmental assessment, DEP, or other local state or federal permitting requirement, or events that are unforeseen by the proposals. The EDA must be notified in advance in writing of any proposed change in a project while the LSCHP-FC program is pending or operational for that project. BPU reserves the right to disqualify a project if changes impact Applicant eligibility. If the changes are determined to have a material adverse effect on the purpose or process of the LSCHP-FC Program, the BPU may determine that such changes constitute an event of default under the Grant Agreement. The CHP or Fuel Cells Project described in the Application is expected to come on-line by the date specified in the Application. In the event that the CHP or Fuel Cells Project fails to come on-line by the date specified in the Application and Grant Agreement, the BPU may determine that such a delay constitutes an event of default under the Grant Agreement. The CHP or Fuel Cells project will be monitored for a five year period to ensure performance goals are met. The CHP or Fuel Cells Project must operate and provide the amount of electric power that the Successful Applicant committed to in the Application to receive the Grant. In the event that the CHP or Fuel Cells Project does not provide such amount of electric power, the Successful Applicant shall take such actions are necessary in order to ensure that the CHP or Fuel Cells Project meets or exceeds the performance goals set forth in the Application. If a CHP or Fuel Cells Project consistently generates less than estimated in the Application or estimates approved by the Board after the Application as described above, the Board may determine that such failure to meet performance goals constitutes an event of default under the grant agreement. The Board will have the final determination as to the qualifying energy production at the CHP or Fuel Cells Project.

Question and Answer Procedures Questions regarding this Solicitation must be submitted in writing by electronic mail to [email protected]. Questions and answers will be posted on the EDA website (www.njeda.com/lschp-fc) on our program FAQs on an as-needed basis.


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5. Award of Funding

5.1 Funding Disbursements The EDA will execute funding award disbursements in accordance with meeting mutually agreed upon project milestones that have been detailed in the program contract agreement, with the goal of full funds disbursement within two years from the award closing date.

5.2 Post-Award Reporting Requirements

Awardees shall be required to comply with NJ Treasury Circular Letter 07-05 OMB found at http://www.state.nj.us/infobank/circular/cir0705b.pdf and to enter into a grant agreement with the BPU, a copy of which is attached hereto in substantially final form. Awardees will be expected to submit quarterly project progress reports documenting progress throughout the funding process through the New Jersey Clean Energy Program Information Management System. The progress reporting terms and detailed performance requirements will be outlined in the program contract documentation. Awardees shall consult, as necessary, with OCE and/or its designated project managers who may conduct field inspections or otherwise monitor the project and its milestone deliverables for compliance with program technical requirements.


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6. Glossary The following key terms are used in this solicitation (“Solicitation”):

• Agency refers to BPU, OCE and/or EDA.

• Applicant is any entity that submits an Application under the terms of this Solicitation.

• Application means applicant’s response to this Solicitation.

• Application Date means the date that the Application was received by EDA.

• Awardee means an eligible Applicant that receives a notice of financial assistance from EDA and BPU pursuant to this Solicitation.

• Blackstart – restoring a power station to operation without relying on the external electric power transmission or distribution network.

• BPU means the New Jersey Board of Public Utilities.

• British thermal unit or Btu means the amount of heat required to increase the temperature of one pound of water by one degree Fahrenheit (mmbtu means 1,000,000 Btu).

• C&I refers to Commercial and Industrial.

• Class I renewable energy means the types of energy that qualify as Class I renewable energy as set forth in N.J.A.C.14:8-2.5.

• Combined heat and power facility means a facility which produces electric energy, steam or other forms of useful energy such as heat, which are used for industrial, commercial, heating or cooling purposes.

• Criteria Pollutants – particle pollution (often referred to as particulate matter), ground-level ozone, carbon monoxide, sulfur oxides, nitrogen oxides, and lead.

• Energy Efficiency Technologies refers to those technologies, equipment or systems that use electricity or natural gas as a principle input resulting in a substantial increase in the efficient use and/or conservation of electricity or natural gas.

• Fuel Cell –is an electrochemical devise that converts a fuel source into electricity.

• Grantee means an Awardee that successfully closed on an award of financial assistance through this Solicitation.

• HHV – Higher Heating Value

• LHV - Lower Heating Value

• Operating Entity – Either the applicant or majority owner(s) of the applicant, provided that the majority owner(s) is a business.

• Purchase Power Agreements Purchase Power Agreements allow one party with available generation to make generation available to another party who needs it. It helps the company in need avoid building a new power plant which can be costly.


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7. Solicitation Appendix

A. Due Diligence Checklist *

B. Contents of Proposal *

C. Certifications*

D. Scoring Criteria

E. New Jersey Protocols

F. Grant Agreement

* The attached forms are provided for your convenience and can be found elsewhere as an Attachment to the EDA online application to be completed.


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Solicitation Appendix


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APPENDIX A: DUE DILIGENCE CHECKLIST The Due Diligence checklist and related attachments must be fully completed and submitted as part of the technical application. The EDA online application and related components should be submitted after receiving technical approval.

Exhibit Letter

Description

Submission Status

Yes/No; Page Number

Comments If not applicable,

then provide reason

Completed Technical Application

A Completed Due Diligence Checklist B Cover Sheet C Abstract D Eligibility Requirements E Applicant Information 1. Business Description 2. Financials* 3. Legal & Regulatory 4. Contracts & Agreements 5. Human Resources 6. Other Contacts

F Project Information 1.Project Description 2. Project Timeline 3. Statement of Work 4. Project Economics and Operating Cost 5. Project Team

G Project Technical Worksheets Form 1: Basic Technical Information Form 2. Proposed CHP-FC System Performance Form 3. Air Emissions Data Form 4. CHP-FC System Costs Table Form 4A. CHP-FC System Service and Maintenance Costs Form 5. Incentive Request Calculation

H Technical and Business Certifications (Signed and Dated as appropriate):

• Clean Air and Water Certification • Independent Engineer Certification • Verification of Application Information* • Historic Sites and Waste Management Certification • Certification of Application • Certification Regarding Debarment, Suspension or

Ineligibility for Award

• Application for Tax Clearance* • Development Subsidy Job Goals Accountability Form* Completed EDA Online Application* *EDA Online Application Component -- to be submitted after technical approval.


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APPENDIX B: CONTENTS OF PROPOSAL

This section of the Solicitation is designed to guide Applicants in organizing their proposals in a consistent fashion to facilitate evaluation. Applicants should demonstrate within the relevant sections how their proposed Project meets or exceeds the program objectives. The technical section and engineering economic analysis of the Application must be signed and sealed by a New Jersey licensed Professional Engineer. Each Application must include the following sections and be in the order presented below:

Completed Technical Application Completed Due Diligence Checklist (See Appendix A) Cover sheet (1 page) Abstract (1 page) Eligibility Requirements Applicant Information Project Description Timeline of Project Related Milestones Statement of Work Project Economics and Operating Cost Project Team Completed CHP-Fuel Cells Technical Worksheets APPENDIX C – Certifications

Completed EDA Online Application for Financial Assistance – TO BE COMPLETED AFTER RECEIVING TECHNICAL APPLICATION APPROVAL.

http://application.njeda.com/account.asp

Specific documentation requirements for each of these sections are provided below.


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B. COVER SHEET

- Name of Application (assigned by the project team to be used for reference purposes) - Name of Primary Contact - Name of Primary Applicant’s Organization - Mailing Address, Phone Number, Fax Number, Email Address, and Web Address of the

Primary Applicant - Specific location of the proposed facilities including point(s) of interconnection with the

electric distribution system - Number and type of proposed prime movers and generators with associated capacity of

each expressed in megawatts - Expected annual electricity production in megawatt hours - Expected annual thermal energy production expressed in mmbtu - Total amount of grant requested - Contact Person and Affiliation of all partnering organizations Applications that do not include the material information above will be disqualified from further consideration. Further descriptions of these items are also required in the subsections below.

C. ABSTRACT – (limit – 2 pages)

An Executive Summary of the CHP or Fuel Cell project which includes the CHP or Fuel Cell technologies including waste heat utilization to be funded and the specific location(s). This should also include: the name of the Applicant, the proposed status of project development, proposed operation date (start and finish) and key project milestones, number of CHP or Fuel Cell units proposed including aggregate project megawatt capacity and location of all points of interconnection with the electric distribution system, and a general site description. Project Type (Technology or technologies), Project Capacity, Total Project Size (MW), Capacity by technology type (if multiple types), Annual Generation, Annual Generation (by technology if more than one), Project Operating Fuel, Total Grant Incentive Requested and anticipated dates of drawdown, Total Incentive as a Share of Total Project Cost (%), Project Cost ($), Estimated Rate of Return, IRR (%). Additionally, project expected benefits (e.g., Amount of Annual Energy Savings or Energy Generation Anticipated from the Project, Amount of Annual Cost Savings Anticipated from the Project, Number and types of Jobs Anticipated to be Created and/or Retained from the Project (both temporary construction jobs and permanent jobs if applicable).


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D. ELIGIBILITY REQUIREMENTS A FINDING OF ELIGIBILITY IS NOT A GUARANTEE OF FUNDING BY THE NEW JERSEY BOARD OF PUBLIC UTILITIES (BPU). The BPU and the EDA reserve the right to request any additional information deemed necessary to complete the review process.

PROJECTS MUST MEET THE FOLLOWING ELIGIBLITY REQUIREMENTS Please check that the proposed CHP project meets all of the following eligibility requirements:

The CHP or Fuel Cell Project shall serve a governmental, commercial, institutional, or industrial electricity customer in this State.

The CHP or Fuel Cell Project shall establish by contract or other arrangement that the electric output generated at a CHP Project shall, to the maximum extent feasible, be consumed at the project site by a facility located at the site and that any surplus power produced that is not needed by that facility may be sold into the interstate PJM grid.

The CHP or Fuel Cell Project shall have an electric generating capacity of greater than one MW.

CHP systems with waste heat utilization must achieve annual system efficiency of at least 65% (LHV) and

fuel cells without heat recovery must achieve annual system efficiency of at least 45% (HHV).

Will this be a new installation or expansion of an existing facility? New Installation Expansion of an Existing facility – (only the incremental expansion will be eligible for the incentive) List all New Jersey State and Federal funding sources that have been or intend to be applied for in support of this proposed project. Has the applicant or owners with a 10% or more interest ever received any type of financial assistance (e.g., loan, grant) from the EDA or any other state agency? If yes, please list agency and describe type of assistance.


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Has the applicant, or any related individual or entity: been, within the last five years, a party in litigation involving laws governing hours of labor, minimum wage standards, discrimination in wages or child labor?

Yes No been, or is now, charged with, convicted of, under indictment, on parole, on probation or a plaintiff in, any criminal or civil offense other than a minor motor vehicle violation?

Yes No been, or is now, subject to, or has pending, any disciplinary action by any administrative, governmental or regulatory body?

Yes No been, or is now, subject to any order resulting from any criminal, civil or administrative proceedings brought against such persons or parties by any administrative, governmental, or regulatory agency?

Yes No been, or is now, denied any license by any administrative, governmental or regulatory agency on the grounds of moral turpitude?

Yes No been, or is now, informed of any current or on-going investigation with respect to possible violations by such persons or parties of state or federal securities, anti-trust or criminal laws?

Yes No been, or is now, denied a business-related license or had it suspended or revoked by any administrative, governmental or regulatory agency?

Yes No been, or is now, disbarred, suspended or disqualified from contracting with any federal, state or municipal agency?

Yes No been, or is now, in receivership or adjudicated bankrupt?

Yes No been, or is now, in default on a personal or business loan?

Yes No been, or is now, in default on any tax payments?

Yes No If “Yes” to any of the above, please provide explanation below:


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E. APPLICANT INFORMATION

1. Business Description

• Detailed description of business (corporate and ownership structure, history, experience) • Description of any liens, judgments, pending lawsuits or other legal claims, tax claims or

other outstanding financial claims against the Applicant, its parent or any of its related entities

• Description of products and services and customer base • Description of intangibles and goodwill, if applicable • Organizational Chart including senior management

2. Financials

Company Business plan including actual current financial and financial projections, as in:

• Financial Statements (income statement, balance sheet, cash flow) - historical year end for two years, (if available), preferably certified public accountant prepared, in accordance with GAAP and to include detailed footnotes and YTD interim management prepared financials less than 90 days old (income statement, balance sheet, cash flow)

o If the Applicant is a special purpose and/or newly created entity, provide the (3) three most recent years of financial statements for each sponsor and/or operating entity with ownership greater than or equal to ten percent (10%).

• Detailed description of all debts and liabilities presently owed by the applicant (debt amount, how secured, terms of repayments, lender contact information)

3. Legal & Regulatory:

• Articles of incorporation or certificate of formation and amendments • Certificate to conduct business in New Jersey


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4. Contracts & Agreements:

• Financing agreements including, but not limited to, grant agreements for sources of project funding

• Listing and detail of all corporate entities and subsidiaries • If co-Applicants, an executed Memorandum of Understanding or joint venture agreement

must be supplied, detailing the roles of each entity

5. Human Resources:

• Corporate and Ownership Structure • Details of current payroll and future hiring plan including positions, responsibilities, and

salaries • Complete bios of management team and board members, including any voting rights and

current contact information (if not included in business plan) 6. Other Contacts:

• Legal Counsel • Accountant


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F. PROJECT INFORMATION

General Notes: In these sections to follow, applicants must demonstrate how their proposed CHP or Fuel Cells Project will meet or exceed the criteria set forth in the Program Solicitation by providing the following additional technical information: A. Total installed capacity in megawatts for the entire CHP or Fuel Cells Project, total

thermal energy capacity, expected annual energy production in megawatt hours and mmbtu for the CHP or Fuel Cells Project is required to be fully documented to enable adequate review of the project size in relation to the amount of the Grant requested. The total amount of energy being generated over the term of the Grant and the life of the CHP or Fuel Cells Project should also be provided.

B. Applicants should demonstrate applicable experience in projects of the size and scope

proposed. Applications must include a comprehensive business plan with fully documented estimates of all associated and relied upon revenue and expense projections expressly and explicitly defined.

C. The Application must list all team members and include a description of the experience

of the team in construction and operation of power plants of similar size and scope. The Application must also contain the number of construction jobs and permanent jobs which the development and operation of the CHP or Fuel Cells Project will create in New Jersey, as well as the number of jobs retained.

D. Applications must demonstrate that the CHP or Fuel Cell Project capacity will have an

aggregate capacity of not less than one megawatt. E. The Application must specify the expected project time requirements in the aggregate

from start to finish, as well as the time required to accomplish each specific activity related to project design, permitting, construction, and commissioning activities with associated milestones delineated for each category of activity.

F. Applications must estimate an expected useful economic life of the CHP or Fuel Cell

Project, including engines, generators and heat recovery equipment. The Application must demonstrate that cogeneration equipment will have a minimum useful service life of twenty (20) years subject to necessary major maintenance including engine core change out and rebuild.

G. Applications must include a calculation of the maximum amount of the Grant which the

Applicant will be entitled to receive for the CHP or Fuel Cells Project, assuming that the CHP or Fuel Cells Project meets the requirements as specified in the Program Solicitation.

H. The development and production of goods and services in the State is encouraged. To

that end, the Application should include the extent to which the technology and project


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proposed will be manufactured or supported in the State and constructed by New Jersey-based businesses.

1. PROJECT DESCRIPTION

Applicants must provide the following information with the associated descriptive headings in bold below: A. Project’s Goals and Objectives: The Applicant must describe the overall goals and objectives to

be achieved by successful completion of this project. Include project’s success metrics and how defined. Also describe how this project is consistent with and will help further the program goals, namely: to commence work quickly and complete the project within a reasonable time period; the project’s ability to create or maintain jobs; the project’s ability to reduce greenhouse gas emissions and criteria pollutants; and the project’s ability to create or save energy.

B. Previous Experience. The Applicant must describe the work done to date by the project

team members in developing projects of similar scope. If the work described was not performed by the entire team, delineate the experience or work performed by team members.

C. Site Location and Description – The Application must indicate the site for project

development and the basis for site selection including, the location of transmission lines and all points of interconnection to the distribution system serving New Jersey. The Application must also indicate the location and connection point to any regulated natural gas utility or interstate pipeline. Applications must include a map with the location of the site(s) clearly marked with the location of the CHP or Fuel Cells Project and must include a description of the current uses, conflicts, or characteristics of the site location under consideration. The Application should define the attributes which make the site attractive and list any potential problems, constraints or limitations with siting an energy facility at that location, including but not limited to environmental, economic, or energy production characteristics.

D. Site Ownership or Control – The Application must identify the nature of land

ownership or lease arrangements for all aspects of the CHP or Fuel Cells Project including all required interconnection areas. The Application should describe progress in securing leases, easements and land required for the CHP or Fuel Cells Project and propose a plan for accomplishing remaining steps toward acquiring leases or land ownership. The Application must indicate that the Applicant will have site control at the time of the Application, or demonstrate the ability to have site control within 90 days after the date of the executed Grant Agreement.

E. Environmental, Energy and Economic Impacts and Benefits. The Application must include a description of potential impacts including, but not limited to, air emissions, waste water discharges, noise, aesthetics, during construction and post-constructional operations. Applicants should address in the Application all anticipated or likely environmental, energy or economic issues. (e.g., if on a US or NJ Registered Historic


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Site, applicant must certify NJDEP determination that project complies with all applicable requirements of N.J.A.C. 7:4-2. Also Applicant must certify that all applicable requirements of the NJDEP’s Solid Waste rules at N.J.A.C. 7:26 will be met).

F. Permits. The Application must identify all local, State and/or federal permits and/or approvals required for building and operating the CHP or Fuel Cell Project and the expected time to obtain such permits and/or approvals. Information on all NJDEP permits is available from the Office of Permit Coordination and Environmental Review through the One Stop program which can be accessed from the NJDEP website at http://www.nj.gov/dep/opppc/permitcoor.htm

G. Schedule. The Application must identify the expected duration of the permitting, design

and construction phases of the CHP or Fuel Cell Project. H. Electric Interconnection. The Application must document tasks required and discuss

issues associated with electrical interconnection, including reverse power protection and, if utilized, export power requirements. This section should include a description of each proposed point of interconnection as well as a letter from the utility stating that it is interconnectable.

I. Equipment. To the fullest extent possible, the Application must indicate the major

types of equipment that will be installed. If not yet selected, indicate the candidate equipment suppliers and the characteristics specified. Indicate whether the project team plans to own or lease equipment. Describe the equipment, the specifications, warranties, how long it has been commercially available, approximately how many are currently in service, and where they are installed. For actual construction of the CHP or Fuel Cell Project if approved for a Grant, equipment which is identified in the Application may be replaced or updated with more technologically advanced equipment that is equal to or better than the equipment identified in the Application.

J. Project Capacity and Energy Production. The Application must indicate the proposed

nameplate capacity for the entire CHP or Fuel Cell Project and the anticipated number of individual generating and heat recovery units. The total nameplate capacity that is being proposed for the site must be included. Based on each CHP or Fuel Cell technology proposed, there must also be an estimate of the net yearly energy output for the CHP or Fuel Cell Project, accounting for parasitic losses, and any assumptions that are the basis for the estimate. The Application must account, to the fullest extent possible, the coincidence between time of generation for the CHP or Fuel Cell Project and peak electricity demand. An estimate of the amount of energy being generated over the life of the CHP or Fuel Cell Project must be included.

The Application must also include an estimate, to the best of the Applicant’s ability, the level of generation that the CHP or Fuel Cell Project will be able to provide over the life of the equipment, assuming the CHP or Fuel Cell Project runs for the equipment’s full life.


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K. Operation and Maintenance. The Application must include a complete operation and maintenance plan for the term of the Grant, including any estimated increases resulting from additional fuel costs.

L. Application Information and Signatures. The Application must include the full

business address of the Applicant or lead team member and the names and phone numbers of authoritative and technical contact persons. A principal of the lead firm must sign the attached statement of Verification of Application Information (See Appendix C) and of the Applicant’s intent to abide by the protocols of the Application and the structure of the Grant as described. The name and title (if any) of the person that signs the Application shall be typed or printed below their signature and the signature shall be witnessed. Satisfactory evidence of authority of each person signing the Application shall be furnished to the EDA upon request.

2. Timeline of Project-Related Milestones Proposals must include a detailed timeline for undertaking the Project, including projected dates for commencement of the Project and completion, as well as all major project milestones for anticipated events and deliverables from the date of submission of the Application through commissioning and operation of the CHP or Fuel Cells Project and the payment period of the Grant. The project plan should outline the chronological schedule of activities and key milestones. The Project Plan must indicate amount of time needed to commence work on the Project and amount of time needed to complete the Project (in weeks or months). The project plan schedule can take the form of a Gantt chart or similar chart type. The project-related milestones will include, but not be limited to, all the necessary State and municipal code requirements. Minimum milestones shall include:

Air Emissions Permit Application Project Financing Non–Refundable Deposit on Equipment Equipment Procurement Construction Permits Equipment Delivered to site System Installation Complete Installed System Shakedown Complete Full Scale System Verification (commercial operation) minimum 48 continuous hours CHP Project Complete

If partnering entities/teaming in application submission, project plan must also evidence the roles and responsibilities of each entity throughout the lifecycle of the project, from planning, through execution and post-award reporting responsibilities.


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3. Statement of Work

The Statement of Work outlines work activities. It specifically delineates each step or procedure required to accomplish the objectives of the CHP or Fuel Cells Project. Therefore, each action shall be identified, indicating who will perform it, how it will be performed and its intended result. Be clear and specific; concentrate on “how” and not “why.” Use the following guidelines as the basis for the Statement of Work; modify it as necessary to fit the CHP or Fuel Cells Project. Additional information should be provided if deemed necessary. This section should clearly identify what has been done and present the results to date, and what still needs to be done and how it will be done.


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The Statement of Work must be structured as an ordered set of tasks and attachments as follows: Introduction:

Briefly and clearly state the overall technical goals of the CHP or Fuel Cells Project. Task 1: Project Management

Subcontractor Coordination – State how activities will be coordinated between the Applicant and any partners, any subcontractors, and related entities. A discussion of subcontracting arrangements should also be included.

Project Management Meetings – Plan a kickoff meeting, an acceptance meeting, and a wrap-up meeting. Identify parties to participate at each meeting. Identify parties responsible for scheduling the meeting, providing the agenda (in advance), and issuing minutes.

Task 2: Reporting

If awarded a Grant, the Awardee shall submit at a minimum, quarterly reports by the 15th of the month following the reporting period. Semi annual reports shall summarize progress, difficulties, and planned solutions associated with developing and installing the CHP or Fuel Cells Project. The PJM Generator Attribute Tracking System (PJMGATS) will be utilized to report the electrical production of the CHP or Fuel Cells units and onsite metering will be utilized for the purpose of reporting thermal energy production. All reports which are utilized for the purpose of submitting invoices for payment related to equipment delivery and setup under the Grant will be auditable. Any operational problems and actions taken to fix any problems which might affect the term of the Grant should be addressed.

. PROJEC\ T ECONOMICS AND OPERATING COST 4. PROJECT ECONOMICS AND OPERATING COSTS Applicants must discuss and justify their funding (capital) needs in their Application. The following must specifically be included in the Application:

A. An estimate of all costs and revenues including plans for selling or using energy from the CHP or Fuel Cells Project and the production incentive in $/kWh and $/mmbtu being requested.

Project must contain a detailed budget that clearly describes the sources and schedule of all project financing and how the Grant funds from this Solicitation will be used. Indicate any private, venture, or existing project financing and the total amount of bond financing required for the project and any other incentives, subsidies or other funding associated with the project and projected internal rate of return or other industry-relevant measure of return. Include all assumptions associated with data provided. The project budget


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estimated by the Applicant is expected to include expenses to be incurred during the course of the project, including direct labor, overhead, materials, subcontractors, consultants, travel, and selling, general, and administrative expenses related to the project. The grant agreements will be structured to take into account capital limitations.

B. The plans for utilizing or marketing energy from the CHP or Fuel Cells Project and the

status of negotiations with potential purchasers or users of the energy. If applicable, include Applicant’s production of renewable electricity generation to fulfill BPU’s Renewable Portfolio Standards (“RPS”) requirements and other green power pricing options.

For information on New Jersey’s Independent System Operator, visit the PJM website at www.pjm.com.

C. A cash flow analysis over the lifetime of the CHP or Fuel Cells Project. Included should

be any private, venture or existing project financing, the total amount of tax-exempt bond financing or taxable bond financing required for the CHP or Fuel Cells Project and any other incentives, subsidies or other funding associated with the CHP or Fuel Cells Project and projected internal rate of return or other measure of return compared to industry averages.

D. A discussion of the proposed treatment of all “secondary environmental attributes”

associated with the onsite generation, such as SO2, NOx, CO2 emission credit allowances and renewable energy certificates.

E. A business plan, which must include a description of the CHP or Fuel Cells Project,

estimated construction schedule, ownership structure, and management team, including annual financial projections with detailed assumptions for at least (3) three years, total project cost with all sources and uses of funds including grants, private investment, loans and any public financing, including other supplemental funding sources obtained or anticipated (including amount already budgeted, use of Federal or Clean Energy Program funding already committed or anticipated, etc.). If the Applicant is a special purpose and/or newly created entity, provide the (3) three most recent years of financial statements for each sponsor and/or owner with ownership greater than or equal to ten percent (10%). Plan must also identify Grant Funding Amount Requested and Justification, with the desired drawdown schedule for the Grant – indicate % of Grant desired to be disbursed at various time points or milestones.


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5. PROJECT TEAM

Proposals must include specific information as follows for the project technical and business teams: A. Organizational Chart. Include an organizational chart listing all team members, including the

project manager and any subcontractors and other sponsors involved in the CHP or Fuel Cells Project, showing their roles and responsibilities, and indication of how the Applicant will procure the necessary contractors and subcontractors to undertake the project if/as necessary. If there is job creation associated with this project, Applicant must detail the number and types of jobs to be created, including duration of employment and average salary. If there are jobs to be retained as a result of this project, identify specifics around same.

B. Qualifications. Describe the qualifications of the Applicant’s individual and combined

expertise that will enable successful completion of the CHP or Fuel Cells Project. Describe sources of private financing that will be used by the Applicant to perform the proposed work. Submit resumes of all key project team members, including those of proposed subcontractors. Include education and experience that are relevant to the proposed work.

C. Previous CHP or Fuel Cells Development Experience. Describe the proposing team’s

experience in developing and operating conventional or renewable energy plants, marketing power, and other relevant areas. List related projects that have been undertaken and successfully completed by the Applicant and/or subcontractors. For each project, provide a brief project summary and the name and phone number of a client contact. The EDA reserves the right to contact any reference listed.


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G. PROJECT TECHNICAL WORKSHEETS

The following includes the Technical Requirements, Instructions, and Terms and Conditions for Combined Heat & Power projects eligible under the Large Scale CHP-Fuel Cells Grant Program. Before completing the forms and the related technical worksheets, please carefully read all of the information associated with A) Incentive Qualification Requirements, B) Instructions for Completing the Incentive Forms, and C) Important Terms and Conditions.

INCENTIVE QUALIFICATION REQUIREMENTS: This is a Competitive Grant Solicitation. The BPU has the right to change/modify or discontinue the program without notice. The program will cease when commitments exhaust allocated funding. 1. The system must be greater than one MW. The system must be installed in New Jersey. The applicant must serve a governmental,

commercial, institutional, or industrial electricity customer in this State. Only stationary CHP equipment installed on the customer side of the meter is eligible. This is inclusive of prepackaged generating systems.

2. The proposed system must be capable of meeting all requirements of the NJ DEP for the proposed equipment and be in the process of obtaining an air permit. All accessory and exhaust after treatment equipment and associated capital and operating costs required to meet emissions limits must be included in the proposal.

3. The project shall establish by contract or other arrangement that the electric output generated at a CHP facility shall, to the maximum extent feasible, be consumed at the project site by a facility located at the site and that any surplus power produced that is not needed by that facility may be sold into the interstate PJM grid.

4. Equipment must be new, commercially available and permanently installed. Equipment must be sized to serve all or a portion of the electrical load at the customer site. The proposed generating system is sized to meet the customer’s electrical loads for demand-metered customers – no more than 100% of historical annual consumption or peak demand. Historical annual consumption is for the most recent twelve (12) month period. New additions or expansions to existing facilities will be considered , detailed information of load assumptions must be submitted with the application.

5. Expansion of an existing facility with new equipment is also eligible for incentives, however, only the incremental expansion would be eligible for the incentive.

6. CHP systems with waste heat utilization must achieve annual system efficiency of at least 65% (LHV) and fuel cells without heat recovery must achieve annual system efficiency of at least 45% (HHV). The annual system efficiency shall be based on higher heating value and calculated from the total prime mover output in Btu plus the total heat recovered for useful purposes in Btu divided by the higher heating value of the fuel input in Btu. Mechanically-developed energy may be included in the efficiency evaluation.

7. The system must have a warranty to be all-inclusive for at least 10 years. The cost of ten year warranty may be considered as part of the cost of the project.

8. Incentives will not be processed without a Federal Tax Identification number, Proof of Purchase (receipt), and authorized signatures from the Applicant and Installer.

INSTRUCTIONS FOR COMPLETING THE INCENTIVE FORMS: 1. Complete all of Sections A through E of Form 1, all sections of the Technical worksheets (Forms 2, 3, 4, 4a, and 5), and a detailed

feasibility analysis. All information is necessary for processing applications and incentives. Illegible or incomplete Application Forms and/or Technical Worksheets will not be considered.

2. Deliver or mail 2 CD ROM copies or USB flash drives of the fully completed Application, appropriate Technical Worksheets, and a detailed feasibility analysis to the EDA and be sure to retain a copy for your files.

3. Any changes between the initially proposed system and the installed system must be fully documented and are subject to EDA and BPU approval.

4. After the approved system is installed, the Applicant (or Installation Contractor) must submit the following to the EDA: a completed Notification of Commercial Operations – full scale system verification; proof of purchase; proof of warranty; completed W9 Taxpayer ID and certification form; a copy of the Electrical Code Inspection Certificate; and a completed Interconnection Application.


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IMPORTANT TERMS AND CONDITIONS: 1. To receive an incentive, Applicant must agree to an inspection by the BPU, a BPU/EDA representative, or a BPU/EDA-designated

contractor. The applicant must also agree to allow the BPU to monitor the facility's energy production to verify meeting efficiency requirements and energy production for grant performance payments.

2. The BPU reserves the right to modify or withdraw this program. Program procedures and incentive levels are subject to change or cancellation without notice. Approved projects will be honored under the terms stated in the commitment letter.

3. Installation must comply with the host utility's Interconnection Requirements, which are available from the respective electric utility. These include Operation/Disconnection Procedures, Liability/Indemnity and Insurance Requirements according to the size of the project.

4. All required permits must be properly obtained and posted. 5. Equipment must be new, commercially available and permanently installed. The following are not eligible for incentives: renewable

source-fueled systems (Renewable fueled projects must be submitted to the Renewable Energy market Manager through the REIP program under the NJCEP); portable and emergency backup power systems; used, refurbished, temporary, pilot or demonstration equipment; systems that use diesel fuel, other types of oil or coal for continuous operation.

6. Construction projects will be subject to prevailing wage requirements pursuant to P.L. 2009, c. 203, which amends P.L. 2009, c. 89, as well as the prevailing wage regulations promulgated by the New Jersey Department of Labor and Workforce Development pursuant to P.L. 1963 c. 150 as amended, and N.J.A.C. 17:27-1.1 et seq. and Affirmative Action rules.

7. All projects must be in compliance with all applicable laws. Applicants may not have any unresolved environmental violations, past due unresolved Federal financial obligations, past due unresolved financial obligations to the State of New Jersey, and must be current in all payment of all state and local taxes at time of application submittal and through the entire duration of project funding received by Applicant.


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FORM 1: CHP BASIC REFERENCE INFORMATION A . C U S T O M E R I N F O R M A T I O N :

Electric Utility: Atlantic City Electric Jersey Central Power & Light PSE&G Rockland Electric Company Gas Utility: Elizabethtown Gas New Jersey Natural Gas PSE&G South Jersey Gas

Electric Utility Account Number: ____________________________ Gas Utility Account Number: _________________________ Federal Tax I.D. Number: ____________________________________________________________________________________

First Name: ____________________________________________ Last Name: _____________________________________________

Company Name (if applicable): ____________________________________________________________________________

Daytime Phone Number: _________________________________ Email: ____________________________________________ Installation Address: ___________________________________________________________________________________

City: _____________________________________________________ State: ______ Zip Code: ________________________

Mailing Address (if different from above): __________________________________________________________________

City: _____________________________________________________ State: ______ Zip Code: ________________________ Will the Combined Heat and Power Project be used as an Emergency Management Facility? (Please check one): Yes No (If yes, please provide appropriate documentation.)

B . AWARD RECIPIENT - If Grant check is to be issued to a company other than above, issue Grant check to: First Name: ____________________________________________ Last Name: _____________________________________________

Company Name (if applicable): ___________________________________________________________________________

Daytime Phone Number: _________________________________ Email: _____________________________________________

Address: ______________________________________________________________________________________________

City: _______________________________________________________ State: ______ Zip Code: _________________________

Federal Tax I.D. Number: _____________________________________________________________________________________

Customer Signature: _______________________________________________________________________________________

C . CONTRACTOR/INSTALLER/DESIGN PROFESSIONAL - A l l f i e l d s m u s t b e c o m p l e t e d : First Name: ____________________________________________ Last Name: _____________________________________________


Daytime Phone Number: ______________________________________ Email: __________________________________________ Address: __________________________________________________________________________________________________

City: _______________________________________________________ State: _______ Zip Code: ________________________

D . EQ UIPME NT I N FO RMATIO N: Equipment Type:

Boiler Steam Turbines Gas Engines Gas Turbines Heat Recovery Equipment Other Manufacturer: ____________________________________________ Model: ____________________ Installed Capacity (in kW, as calculated in the Technical Worksheets): ___________________________________________


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E . C U S T O M E R A N D I NS TA LLE R I N FO R MA TI ON: The undersigned warrants, certifies and represents that as part of the design study requirement; 1) the information provided in this entire Form is true and correct to the best of my knowledge; 2) the Installer/Contractor will explain and provide manuals related to the system operation and maintenance to the customer (Applicant); and 3) the installation will meet all of the Combined Heat and Power-Fuel Cells Program requirements. This Application attachment form also requires the signature and certification of a NJ Licensed Professional Engineer.

Customer (Applicant) Contractor/Instal ler

Signature: ______________________________________________ Signature: ___________________________________________ Print Name: ____________________________________________ ______ Print Name: _________________________________________ Date: _________________________________________________ Date: _______________________________________________ Design Professional Name: ___________________________

Design Professional Signature: __________________________

NJ Professional Engineers License Number _________________


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Large Scale Combined Heat & Power (CHP)-Fuel Cells Program Technical Worksheets for CHP Equipment

Before completing the attached Technical Worksheets for the CHP-FC Program, please carefully read all of the

information in Sections A, B and C below.

A. INSTALLATION REQUIREMENTS: Equipment installation must meet the following requirements in order to qualify for the Large Scale Combined Heat and Power-Fuel Cells program:

1. CHP systems with waste heat utilization must achieve annual system efficiency of at least 65%(LHV) and fuel cells without heat recovery must achieve annual system efficiency of at least 45% (HHV).

2. An expected completion date. The Applicant should submit documentation from manufacturers and contractors which state the expected equipment delivery and installation dates.

3. Equipment must be commercially available and permanently installed. The following are not eligible for incentives: portable and emergency backup power systems, temporary, pilot, or demonstration equipment; systems that use petroleum diesel fuel, other types of petroleum oil or coal for continuous operation.

4. The installation must comply with manufacturer's instructions. 5. The installation must comply with the interconnection and protection requirements of the local electric distribution company. 6. The installation must comply with provisions of these standards, as appropriate: NFPA 853 – Stationary Fuel Cell, and all codes governing the installation of

Combined Heat and Power equipment; Power Plants, IEEE 519 – Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems; ANSI Z21.83-1998 Fuel Cell Power Plants, and input and output protection functions should be in compliance with ANSI C37.2 Device Function Number specifications.

7. The system should be equipped with the following capabilities, indicators and/or controls: • On/off control on site • Operating mode setting indication - parallel vs. stand-alone • AC & DC overcurrent protection or equivalent • Operating status indication • Remote control and data acquisition capable • Electric load-following capable

8. Warning labels must be posted on the control panels and junction boxes indicating that the circuits are energized by an alternate power source independent of utility-provided power.

9. All interconnecting wires must be copper. (Some provisions may be made for aluminum wiring; approval must be received from utility engineering departments prior to acceptance.)

10. All wiring splices must be contained in UL-approved workboxes. 11. Operating instructions must be posted on or near the system, or on file with facilities operation and maintenance documents.

Proposed changes to the requirements will be considered, but they must be documented by the Applicant or Installation Contractor and approved by EDA. These requirements are not all-encompassing and are intended only to address certain minimum safety and efficiency standards.

B. CODE REQUIREMENTS: 1. The installation must comply with the provisions of the National Electrical Code and all other applicable local, state, and federal codes or practices.

2. All required permits must be properly obtained and posted. (e.g., . Title V) 3. All required inspections must be performed (i.e., Electrical/NEC, Local Building Codes Enforcement Office, etc.). In order to ensure compliance with provisions of the NEC, an inspection by a state-licensed electrical inspector is mandatory.

C. INSTRUCTIONS: The information below must be supplied in the detailed feasibility analysis. Provide a brief narrative describing the facility and the project including (but not limited to) the following. System Type and Mode of Operation:

Grid-connected Operating mode (parallel/capable of synchronizing with the electric grid; capable of automatically reducing load to prevent backfeeding the meter) 1. Grid-connected/grid-independent operating mode (parallel/capable of synchronizing with the electric grid and capable of switching automatically to independent, load-

following operation when the grid is unavailable; automatic operation and synchronization of multiple power plants connected in parallel) 2. Stand-alone load-following operation (system confined to an independent circuit, no utility backup) 3. Battery interactive capabilities, if applicable


44

Large Scale Combined Heat & Power (CHP)-Fuel Cells Program Technical Worksheets for CHP Equipment

C. INSTRUCTIONS (continued from previous page) System Information: 1. Complete Form #2 in its entirety. 2. The type and rating of the prime mover and an energy balance around the prime mover. The energy balance must be applied to a schematic of the system showing all

major components, including the uses for the recovered heat. Annual totals for each energy input/output must be shown along with maximum, minimum, and average instantaneous values. Temperatures for each waste heat transfer fluid and sink must also be indicated.

3. Fuel conversion efficiency (FCE) for the prime movers must be provided. FCE is defined as the ratio expressed as a percentage of the total usable energy produced by a technology to the sum of all fuel or other energy inputs to the technology measured at each fuel's higher heating value.

4. The description of the proposed system must include a floor plan indicating equipment location and tie-in to existing building systems. Any structural modifications must be included in the capital cost of the system. This document must indicate the location of the Combined Heat and Power system, batteries (if any), lockable disconnect switch (unless otherwise approved by the electric utility, the disconnect switch shall be installed at the electric utility meter location), and point of connection with the utility system. The installation address, current account number at that address (gas and electric), and the installer's name and telephone number must also be included on the site map.

5. The pressure and availability of gas must be described in the study. 6. An operational sequence must be included that specifies the control system to be used along with a discussion of its integration with other on-site controls systems

and who will have the responsibility for system operation. 7. A construction schedule that includes engineering, permitting, construction, start-up and commissioning must be provided.

Economic Evaluation: Complete Form 4 and Form 4a in their entirety CHP System Economic Evaluation Requirements: Simple payback, 10 year cash flow analyses, and IRR analysis are required for purposes of this Application Attachment. Although the format of these analyses is at the discretion of the applicant, the following inputs must be considered and shown within these analyses:

1. Total CHP system capital cost (from Form 4) 2. CHP system operating hours, load factor, and availability factor 3. Total service and maintenance costs (from Form 4a) 4. CHP system heat rate/ fuel consumption 5. Efficiency of current boiler plant, chiller plant, etc. for which recovered waste heat will supplement. 6. Clearly state energy savings or increased use of energy; and the demand savings. The savings, or the increase, should be stated in terms of KW, kWh and

in MMBtu. 7. Fuel cost – commodity and delivery 8. Offset electricity quantity and value – customer charge, demand charge, commodity charge, TOU where applicable, any unavoidable charges 9. Offset thermal energy quantity and value – commodity and delivery

10. Changes to tariffs due to CHP, including supplemental electricity tariffs, standby rates 11. Fuel and electricity escalation rates for cash flow analysis 12. Financing options and assumptions, such as the discount rate and interest rate for cash flow analysis 13. Any additional costs or credits, including incentives, the value of reliability, emission credits, HVAC equipment offsets

Tariff Impacts and Interconnections:

1. In addition to inclusion in the economic analysis described above, a detailed description of the relationship between the proposed CHP facility and the customer's existing energy tariffs must be included. Contract dates and dates of potential tariff rule changes must be included. In the case where such future changes would significantly impact the economics of the project, sensitivity analysis must be presented assuming the potential tariff or contract changes occurred.

2. Site-specific grid interconnection issues and costs must be discussed. A brief, clear plan for if and how the system will be properly interconnected to the grid and/or natural gas pipelines must be presented.

Permitting:

1. A brief description of the necessary environmental and building permits or certificates that the customer needs to obtain must be provided. The permit determination should be based on a detailed emissions inventory developed from the hourly spreadsheet based model. A schedule of realistic permit receipt dates must be included in the schedule described above.

System Reliability and Availability: 1. The reliability and availability of the CHP system must be quantified (e.g. number of hours the system would be available at less than full capacity).

Supporting Documentation Should Include the Following:

1. Self-generation and waste heat recovery equipment specifications 2. New and existing facility equipment (both thermal and electric) annual operating schedules 3. At least twelve months of the most recent electric bill(s) for the facility served by the CHP system 4. At least twelve months of the most recent bills for natural gas, fuel oil and/or other fuels used in the facility served by the CHP system.

If you plan to use an absorption chiller to offset cooling load, provide cooling load calculations.


45

1 kWh = 0.003412 MMBtu

Unit Cost of Gas

Unit Cost of Electricity

Rate Schedule Gas

Electricity

FORM 2: PROPOSED CHP SYSTEM PERFORMANCE

With the help of your installation contractor, fully complete the technical worksheets for CHP equipment. Proposed System overview (Annual)

Prime Mover Type Energy Input (MMBtu) Electric Output

(kWh) (MMBtu)

Recoverable Thermal Output (MMBtu) Utilized Thermal Output1 (MMBtu) Annual System Efficiency2 (%)

Rated System Information Prime Mover Model Info Energy Input (MMBtu)

Rated Electric Output (kW)

(MMBtu/h) Total Thermal Output (MMBtu/h)

Recoverable Thermal Output (MMBtu/h)

Fuel Conversion Efficiency3 (%)

1 – Heat used from the CHP systems for the purpose of heating and cooling 3 – Fuel Conversion Efficiency = (Rated Electric output + Recoverable Thermal Output)/Energy Input 2 – Annual System efficiency = (Electric output + Utilized Thermal Output)/Energy Input

Proposed System Overview

Month

Anticipated operating

hours

Input Fuel

(MMBtu)

Output Electricity (MMBtu)

Recoverable Thermal

output (MMBtu)

Utilized Thermal

output

Electric Efficiency

(%)

Thermal Efficiency

(%)

Annual Efficiency

(%) Jan Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec

Total Breakdown of Recovered Thermal Output (Indicate in the detailed feasibility analysis the fuels that are being displaced and the respective equipment efficiency)

Month

Process Heating

(MMBtu)

Process Cooling

(MMBtu)

Space Heating

(MMBtu)

Space Cooling

(MMBtu)

Domestic Hot Water

(MMBtu) Other (MMBtu) Total (MMBtu) Jan Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec

Total


46

FORM 3: CHP AIR EMISSIONS DATA

With the help of your Installation Contractor, fully complete the Technical Worksheets for CHP Equipment.

This form reports anticipated annual emissions of the six (6) pollutants due to the CHP System. The first table should include vendor supplied data on the emissions from the prime mover to be installed. The second two sections will show what fraction of those new emissions is displacing current system emissions.

Yearly Grid Supplied Electricity (Pre-Installation) (MWh/year)

Yearly CHP System Supplied Electricity (MWh/year)

Yearly Grid Supplied Electricity (Post-Installation) (MWh/year)

Vendor Supplied CHP System Emissions

NOx lbs/MWh

SOx lbs/MWh

PM-10 lbs/MWh

CO2 lbs/MWh

CO lbs/MWh

VOC lbs/MWh Estimates of "Displaced" Emissions The following two tables should be completed if data or information exists. By reporting on the emissions of the facility both before and after installation of the CHP system, the net impact of the new system can be estimated. If insufficient data exists, leave the tables blank. For systems greater than 2 MW, both tables must be completed prior to the release of the committed incentive.

Calculated Annual Boiler/Furnace Emissions (lbs) Pre-CHP Installation Post Installation D Difference

NOx SOx

PM-10 CO2 CO

VOC

Annual Site Emissions (lbs) Pre-CHP Installation Post Installation D Difference

NOx SOx

PM-10 CO2 CO

VOC


47

FORM 4: CHP SYSTEMS COST TABLE


Directions: Please enter all CHP system capital costs in the table below. Break out costs should add up to total CHP system turnkey cost. Turnkey line item costs should include any administrative and markup costs. Where a component or construction cost is not included in CHP project design enter “N/A.” Where a component or construction cost is provided within another line item, please enter “included.”

CHP System Component Cost ($) Prime Mover Fuel Compressor Black Start Capability Generator Heat Recovery Cooling Tower or other Heat Dump Absorption Chiller Desiccant Controls Sound Attenuation Inlet Air Handling Vibration Isolation Emission Controls

Design/Construction/Labor and Materials Cost ($) Engineering Site Preparation Buildings Construction Labor Materials Exhaust Stack Electrical Tie-in Mechanical Tie-in Grid Interconnection Devices Permitting Fees Contingency

Total CHP System Turnkey Cost


48

FORM 4a: CHP SYSTEM SERVICE AND MAINTENANCE COSTS


Directions: Please enter annual costs for system service and maintenance, including parts, labor and all major equipment overhauls. Include fixed costs for extended service warranty where applicable. If multiple rows are included in a fixed maintenance cost, please enter “included” or N/A in that row as applicable.

YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10

Prime Mover/Heat Recovery

Thermal Equipment

Emissions Control

Remote Monitoring/Control

Warranty/Service Contracts

Total Service/Maintenance Costs


49

FORM 5: CHP INCENTIVE REQUEST CALCULATION

Total system rated Electric Capacity AC Kilowatts.________ Note: The maximum % of project cost for all state and federal funding can not exceed 50%. An applicant can not receive both a Clean Energy CHP rebate and a performance grant. The applicant may apply for both however only one incentive can be applied to each project. The applicant may qualify for other financial assistance through BPU and or other State or federal programs *Spreadsheets provided by link with examples below may be used at the discretion of the Applicant. It is the sole responsibility of the applicant to produce and submit project specific calculations.

Incentive Calculations

1. CHP with generation less than or equal to 20 MW Electric Capacity (minimum 65% combined electrical and thermal efficiency) 2. CHP with generation greater than 20 MW Electric Capacity (minimum 70% combined electrical and thermal efficiency)

• Combustion Turbine Electric Capacity (KW) = ISO Power rating x 0.93 _________KW • Internal Combustion Engine Electric Capacity (KW) = Continuous Duty Rating x .96 ________KW

• Grant total amount ($) = Electric Capacity kw x $550/kw (first 3 kW) $__________

kw x $350/kw (above 3 kw) $ __________

I hereby submit that all of the provided information is true to the best of my knowledge.

Customer Name: _____________________________

Customer Signature: _________________________________________


Design Professional Name: ___________________________

Design Professional Signature: _________________________________________



50

H. FUEL CELL PROJECT TECHNICAL WORKSHEETS

The following includes the Technical Requirements, Instructions, and Terms and Conditions for Combined Heat & Power projects eligible under the Large Scale CHP-Fuel Cells Grant Program. Before completing the forms and the related technical worksheets, please carefully read all of the information associated with A) Incentive Qualification Requirements, B) Instructions for Completing the Incentive Forms, and C) Important Terms and Conditions.

INCENTIVE QUALIFICATION REQUIREMENTS: This is a Competitive Grant Solicitation. The BPU has the right to change/modify or discontinue the program without notice. The program will cease when commitments exhaust allocated funding. 1. The system must be greater than one MW. The system must be installed in New Jersey. The applicant must serve a governmental,

commercial, institutional, or industrial electricity customer in this State. Only stationary CHP equipment installed on the customer side of the meter is eligible. This is inclusive of prepackaged generating systems.

2. The proposed system must be capable of meeting all requirements of the NJ DEP for the proposed equipment and be in the process of obtaining an air permit. All accessory and exhaust after treatment equipment and associated capital and operating costs required to meet emissions limits must be included in the proposal.

3. The project shall establish by contract or other arrangement that the electric output generated at a CHP facility shall, to the maximum extent feasible, be consumed at the project site by a facility located at the site and that any surplus power produced that is not needed by that facility may be sold into the interstate PJM grid.

4. Equipment must be new, commercially available and permanently installed. Equipment must be sized to serve all or a portion of the electrical load at the customer site. The proposed generating system is sized to meet the customer’s electrical loads for demand-metered customers – no more than 100% of historical annual consumption or peak demand. Historical annual consumption is for the most recent twelve (12) month period. New additions or expansions to existing facilities will be considered , detailed information of load assumptions must be submitted with the application.

5. CHP systems with waste heat utilization must achieve annual system efficiency of at least 65% (LHV) and fuel cells without heat recovery must achieve annual system efficiency of at least 45% (HHV). The annual system efficiency shall be based on higher heating value and calculated from the total prime mover output in Btu plus the total heat recovered for useful purposes in Btu divided by the higher heating value of the fuel input in Btu. Mechanically-developed energy may be included in the efficiency evaluation.

6. The system must achieve annual system efficiency of at least 65% (LHV), based on total energy input and total utilized energy output. Mechanical energy may be included in the efficiency evaluation.

7. The system must have a warranty to be all-inclusive for at least 10 years. The cost of ten year warranty may be considered as part of the cost of the project.

8. Incentives will not be processed without a Federal Tax Identification number, Proof of Purchase (receipt), and authorized signatures from the Applicant and Installer.

INSTRUCTIONS FOR COMPLETING THE INCENTIVE FORMS: 1. Complete all of Sections A through E of Form 1, all sections of the Technical worksheets (Forms 2, 3, 4, 4a, and 5), and a detailed

feasibility analysis. All information is necessary for processing applications and incentives. Illegible or incomplete Application Forms and/or Technical Worksheets will not be considered.

2. Deliver or mail 2 CD ROM copies or USB flash drives of the fully completed Application, appropriate Technical Worksheets, and a detailed feasibility analysis to the EDA and be sure to retain a copy for your files.

3. Any changes between the initially proposed system and the installed system must be fully documented and are subject to EDA and BPU approval.

4. After the approved system is installed, the Applicant (or Installation Contractor) must submit the following to the EDA: a completed Notification of Commercial Operations – full scale system verification; proof of purchase; proof of warranty; completed W9 Taxpayer ID and certification form; a copy of the Electrical Code Inspection Certificate; and a completed Interconnection Application.


51

IMPORTANT TERMS AND CONDITIONS: 1. To receive an incentive, Applicant must agree to an inspection by the BPU, a BPU/EDA representative, or a BPU/EDA-designated

contractor. The applicant must also agree to allow the BPU to monitor the facility's energy production to verify meeting efficiency requirements and energy production for grant performance payments.

2. The BPU reserves the right to modify or withdraw this program. Program procedures and incentive levels are subject to change or cancellation without notice. Approved projects will be honored under the terms stated in the commitment letter.

3. Installation must comply with the host utility's Interconnection Requirements, which are available from the respective electric utility. These include Operation/Disconnection Procedures, Liability/Indemnity and Insurance Requirements according to the size of the project.

4. All required permits must be properly obtained and posted. 5. Equipment must be new, commercially available and permanently installed. The following are not eligible for incentives: renewable

source-fueled systems (Renewable fueled projects must be submitted to the Renewable Energy market Manager through the REIP program under the NJCEP); portable and emergency backup power systems; used, refurbished, temporary, pilot or demonstration equipment; systems that use diesel fuel, other types of oil or coal for continuous operation.

6. Construction projects will be subject to prevailing wage requirements pursuant to P.L. 2009, c. 203, which amends P.L. 2009, c. 89, as well as the prevailing wage regulations promulgated by the New Jersey Department of Labor and Workforce Development pursuant to P.L. 1963 c. 150 as amended, and N.J.A.C. 17:27-1.1 et seq. and Affirmative Action rules.

7. All projects must be in compliance with all applicable laws. Applicants may not have any unresolved environmental violations, past due unresolved Federal financial obligations, past due unresolved financial obligations to the State of New Jersey, and must be current in all payment of all state and local taxes at time of application submittal and through the entire duration of project funding received by Applicant.


52

FORM 1: FUEL CELLS BASIC REFERENCE INFORMATION

F . C U S T O M E R I N F O R M A T I O N :

Electric Utility: Atlantic City Electric Jersey Central Power & Light PSE&G Rockland Electric Company Gas Utility: Elizabethtown Gas New Jersey Natural Gas PSE&G South Jersey Gas Other

Electric Utility Account Number: ____________________________ Gas Utility Account Number: _________________________ Federal Tax I.D. Number: ___________________________________________________________________________________

First Name: ____________________________________________ Last Name:_____________________________________________

Company Name (if applicable): ____________________________________________________________________________

Daytime Phone Number: _________________________________ Email: ____________________________________________ Installation Address: ___________________________________________________________________________________

City: _____________________________________________________ State: ______ Zip Code: ________________________

Mailing Address (if different from above): __________________________________________________________________

City: _____________________________________________________ State: ______ Zip Code: ________________________ Will the Fuel Cell Project be used as an Emergency Management Facility? (Please check one): Yes No (If yes, please provide appropriate documentation.)

G . AWARD RECIPIENT - If Grant check is to be issued to a company other than above, issue Grant check to: First Name: ____________________________________________ Last Name: _____________________________________________


Daytime Phone Number: _________________________________ Email: _____________________________________________

Address: ______________________________________________________________________________________________

City: _______________________________________________________ State: ______ Zip Code: _________________________


Customer Signature: _______________________________________________________________________________________

H . CONTRACTOR/INSTALLER/DESIGN PROFESSIONAL - A l l f i e l d s m u s t b e c o m p l e t e d : First Name: ____________________________________________ Last Name: _____________________________________________


Daytime Phone Number: ______________________________________ Email: __________________________________________ Address: __________________________________________________________________________________________________

City: _______________________________________________________ State: _______ Zip Code: ________________________


I . EQ UIPME NT I N FO RMATIO N: Fuel Cell Type:

Alkaline Phosphoric Acid Polymer Electrolyte Membrane Molten Carbonate Solid Oxide Other

Manufacturer: ____________________________________________ Model: ____________________ Waste Heat Recovery: Yes No (electric generation only)

Installed Capacity (in kW, as calculated in the Technical Worksheets): ___________________________________________


53

J . C U S T O M E R A N D I NS TA LLE R I N FO R MA TI ON: The undersigned warrants, certifies and represents that as part of the design study requirement; 1) the information provided in this entire Form is true and correct to the best of my knowledge; 2) the Installer/Contractor will explain and provide manuals related to the system operation and maintenance to the customer (Applicant); and 3) the installation will meet all of the Combined Heat and Power-Fuel Cells Program requirements. This Application attachment form also requires the signature and certification of a NJ Licensed Professional Engineer.

Customer (Applicant) Contractor/Instal ler

Signature: ______________________________________________ Signature: ___________________________________________ Print Name: ____________________________________________ ______ Print Name: _________________________________________ Date: _________________________________________________ Date: _______________________________________________ Design Professional Name: ___________________________

Design Professional Signature: __________________________



54

Large Scale Combined Heat & Power (CHP) Program Technical Worksheets for Fuel Cells Equipment

Before completing the attached Technical Worksheets for the CHP-FC Program, please carefully read all of the information in Sections A, B and C below.

A. INSTALLATION REQUIREMENTS: Equipment installation must meet the following requirements in order to qualify for the Large Scale Combined Heat and Power-Fuel Cells program:

8. CHP systems with waste heat utilization must achieve annual system efficiency of at least 65% (LHV) and fuel cells without heat recovery must achieve annual system efficiency of at least 45% (HHV).

9. An expected completion date. The Applicant should submit documentation from manufacturers and contractors which state the expected equipment delivery and installation dates.

10. Equipment must be commercially available and permanently installed. The following are not eligible for incentives: portable and emergency backup power systems, temporary, pilot, or demonstration equipment; systems that use petroleum diesel fuel, other types of petroleum oil or coal for continuous operation.

11. The installation must comply with manufacturer's instructions. 12. The installation must comply with the interconnection and protection requirements of the local electric distribution company. 13. The installation must comply with provisions of these standards, as appropriate: NFPA 853 – Stationary Fuel Cell, and all codes governing the

installation of Combined Heat and Power equipment; Power Plants, IEEE 519 – Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems; ANSI Z21.83-1998 Fuel Cell Power Plants, and input and output protection functions should be in compliance with ANSI C37.2 Device Function Number specifications.

14. The system should be equipped with the following capabilities, indicators and/or controls: • On/off control on site • Operating mode setting indication - parallel vs. stand-alone • AC & DC overcurrent protection or equivalent • Operating status indication • Remote control and data acquisition capable • Electric load-following capable

10. Warning labels must be posted on the control panels and junction boxes indicating that the circuits are energized by an alternate power source independent of utility-provided power.

11. All interconnecting wires must be copper. (Some provisions may be made for aluminum wiring; approval must be received from utility engineering departments prior to acceptance.)

10. All wiring splices must be contained in UL-approved workboxes. 11. Operating instructions must be posted on or near the system, or on file with facilities operation and maintenance documents.

Proposed changes to the requirements will be considered, but they must be documented by the Applicant or Installation Contractor and approved by EDA. These requirements are not all-encompassing and are intended only to address certain minimum safety and efficiency standards.

B. CODE REQUIREMENTS: 4. The installation must comply with the provisions of the National Electrical Code and all other applicable local, state, and federal codes or practices.

5. All required permits must be properly obtained and posted. (e.g., . Title V) 6. All required inspections must be performed (i.e., Electrical/NEC, Local Building Codes Enforcement Office, etc.). In order to ensure compliance with provisions of the NEC, an inspection by a state-licensed electrical inspector is mandatory.

C. INSTRUCTIONS: The information below must be supplied in the detailed feasibility analysis. Provide a brief narrative describing the facility and the project including (but not limited to) the following. System Type and Mode of Operation:

Grid-connected Operating mode (parallel/capable of synchronizing with the electric grid; capable of automatically reducing load to prevent backfeeding the meter) 4. Grid-connected/grid-independent operating mode (parallel/capable of synchronizing with the electric grid and capable of switching automatically to independent, load-

following operation when the grid is unavailable; automatic operation and synchronization of multiple power plants connected in parallel) 5. Stand-alone load-following operation (system confined to an independent circuit, no utility backup) 6. Battery interactive capabilities, if applicable


55

Large Scale Combined Heat & Power (CHP)-Fuel Cells Program Technical Worksheets for Fuel Cells Equipment

C. INSTRUCTIONS (continued from previous page) System Information: 8. Complete Form #2 in its entirety. 9. The type and rating of the prime mover and an energy balance around the prime mover. The energy balance must be applied to a schematic of the system showing all

major components, including the uses for the recovered heat. Annual totals for each energy input/output must be shown along with maximum, minimum, and average instantaneous values. Temperatures for each waste heat transfer fluid and sink must also be indicated.

10. Fuel conversion efficiency (FCE) for the prime movers must be provided. FCE is defined as the ratio expressed as a percentage of the total usable energy produced by a technology to the sum of all fuel or other energy inputs to the technology measured at each fuel's higher heating value.

11. The description of the proposed system must include a floor plan indicating equipment location and tie-in to existing building systems. Any structural modifications must be included in the capital cost of the system. This document must indicate the location of the Fuel Cell system, batteries (if any), lockable disconnect switch (unless otherwise approved by the electric utility, the disconnect switch shall be installed at the electric utility meter location), and point of connection with the utility system. The installation address, current account number at that address (gas and electric), and the installer's name and telephone number must also be included on the site map.

12. The pressure and availability of gas must be described in the study. 13. An operational sequence must be included that specifies the control system to be used along with a discussion of its integration with other on-site controls

systems and who will have the responsibility for system operation. 14. A construction schedule that includes engineering, permitting, construction, start-up and commissioning must be provided.

Economic Evaluation: Complete Form 4 and Form 4a in their entirety Fuel Cell System Economic Evaluation Requirements: Simple payback, 10 year cash flow analyses, and IRR analysis are required for purposes of this Application Attachment. Although the format of these analyses is at the discretion of the applicant, the following inputs must be considered and shown within these analyses:

10. Total Fuel Cell system capital cost (from Form 4) 11. Fuel Cell system operating hours, load factor, and availability factor 12. Total service and maintenance costs (from Form 4a) 13. Fuel Cell system heat rate/ fuel consumption 14. Efficiency of current boiler plant, chiller plant, etc. for which recovered waste heat will supplement. 15. Clearly state energy savings or increased use of energy; and the demand savings. The savings, or the increase, should be stated in terms of KW,

kWh and in MMBtu. 16. Fuel cost – commodity and delivery 17. Offset electricity quantity and value – customer charge, demand charge, commodity charge, TOU where applicable, any unavoidable charges 18. Offset thermal energy quantity and value – commodity and delivery

10. Changes to tariffs due to Fuel Cell, including supplemental electricity tariffs, standby rates 11. Fuel and electricity escalation rates for cash flow analysis 12. Financing options and assumptions, such as the discount rate and interest rate for cash flow analysis 13. Any additional costs or credits, including incentives, the value of reliability, emission credits, HVAC equipment offsets

Tariff Impacts and Interconnections:

3. In addition to inclusion in the economic analysis described above, a detailed description of the relationship between the proposed Fuel Cell facility and the customer's existing energy tariffs must be included. Contract dates and dates of potential tariff rule changes must be included. In the case where such future changes would significantly impact the economics of the project, sensitivity analysis must be presented assuming the potential tariff or contract changes occurred.

4. Site-specific grid interconnection issues and costs must be discussed. A brief, clear plan for if and how the system will be properly interconnected to the grid and/or natural gas pipelines must be presented.

Permitting:

1. A brief description of the necessary environmental and building permits or certificates that the customer needs to obtain must be provided. The permit determination should be based on a detailed emissions inventory developed from the hourly spreadsheet based model. A schedule of realistic permit receipt dates must be included in the schedule described above.

System Reliability and Availability: 1. The reliability and availability of the Fuel Cell system must be quantified (e.g. number of hours the system would be available at less than full capacity).

Supporting Documentation Should Include the Following:

5. Self-generation and waste heat recovery equipment specifications 6. New and existing facility equipment (both thermal and electric) annual operating schedules 7. At least twelve months of the most recent electric bill(s) for the facility served by the Fuel Cell system 8. At least twelve months of the most recent bills for natural gas, fuel oil and/or other fuels used in the facility served by the Fuel Cell system.

If you plan to use an absorption chiller to offset cooling load, provide cooling load calculations.


56

1 kWh = 0.003412 MMBtu

Unit Cost of Gas

Unit Cost of Electricity

Rate Schedule Gas

Electricity

FORM 2: PROPOSED FUEL CELL SYSTEM

PERFORMANCE With the help of your installation contractor, fully complete the technical worksheets for Fuel Cell equipment. Proposed System overview (Annual)

Prime Mover Type Energy Input (MMBtu) Electric Output

(kWh) (MMBtu)

Recoverable Thermal Output (MMBtu) Utilized Thermal Output1 (MMBtu) Annual System Efficiency2 (%)

Rated System Information Prime Mover Model Info Energy Input (MMBtu)

Rated Electric Output (kW)

(MMBtu/h) Total Thermal Output (MMBtu/h) Recoverable Thermal Output (MMBtu/h)

Fuel Conversion Efficiency3 (%)

1 – Heat used from the Fuel Cell system for the purpose of heating and cooling 3 – Fuel Conversion Efficiency = (Rated Electric output + Recoverable Thermal Output)/Energy Input 2 – Annual System efficiency = (Electric output + Utilized Thermal Output)/Energy Input

Proposed System Overview

Month

Anticipated operating

hours

Input Fuel

(MMBtu)

Output Electricity (MMBtu)

Recoverable Thermal

output (MMBtu)

Utilized Thermal

output

Electric Efficiency

(%)

Thermal Efficiency

(%)

Annual Efficiency

(%) Jan Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec

Total Breakdown of Recovered Thermal Output (Indicate in the detailed feasibility analysis the fuels that are being displaced and the respective equipment efficiency)

Month

Process Heating

(MMBtu)

Process Cooling

(MMBtu)

Space Heating

(MMBtu)

Space Cooling

(MMBtu)

Domestic Hot Water

(MMBtu) Other (MMBtu) (MMB )

Total (MMBtu) Jan Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec

Total


57

FORM 3: FUEL CELLS AIR EMISSIONS DATA

With the help of your Installation Contractor, fully complete the Technical Worksheets for Fuel Cell Equipment.

This form reports anticipated annual emissions of the six (6) pollutants due to the Fuel Cell System. The first table should include vendor supplied data on the emissions from the prime mover to be installed. The second two sections will show what fraction of those new emissions is displacing current system emissions.

Yearly Grid Supplied Electricity (Pre-Installation) (MWh/year)

Yearly Fuel Cell System Supplied Electricity (MWh/year)

Yearly Grid Supplied Electricity (Post-Installation) (MWh/year)

Vendor Supplied Fuel Cell System Emissions

NOx lbs/MWh

SOx lbs/MWh

PM-10 lbs/MWh

CO2 lbs/MWh

CO lbs/MWh

VOC lbs/MWh Estimates of "Displaced" Emissions The following two tables should be completed if data or information exists. By reporting on the emissions of the facility both before and after installation of the Fuel Cell system, the net impact of the new system can be estimated. If insufficient data exists, leave the tables blank. For systems greater than 2 MW, both tables must be completed prior to the release of the committed incentive.

Calculated Annual Boiler/Furnace Emissions (lbs) Pre-Fuel Cell Installation Post Installation Difference

NOx SOx

PM-10 CO2 CO

VOC

Annual Site Emissions (lbs) Pre-Fuel Cell Installation Post Installation Difference

NOx SOx

PM-10 CO2 CO

VOC


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FORM 4: FUEL CELL SYSTEMS COST TABLE


Directions: Please enter all Fuel Cell system capital costs in the table below. Break out costs should add up to total system turnkey cost. Turnkey line item costs should include any administrative and markup costs. Where a component or construction cost is not included in Fuel Cell project design enter “N/A.” Where a component or construction cost is provided within another line item, please enter “included.”

Fuel Cell System Component Cost ($) Prime Mover Fuel Compressor Fuel Reformer Black Start Capability Generator Heat Recovery Cooling Tower or other Heat Dump Absorption Chiller Desiccant Controls Sound Attenuation Inlet Air Handling Vibration Isolation Emission Controls Other:

Design/Construction/Labor and Materials Cost ($) Engineering Site Preparation Buildings Construction Labor Materials Exhaust Stack Electrical Tie-in Mechanical Tie-in Grid Interconnection Devices Permitting Fees Contingency Other:

Total System Turnkey Cost


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FORM 4a: Fuel Cell SYSTEM SERVICE AND MAINTENANCE

COSTS


Directions: Please enter annual costs for system service and maintenance, including parts, labor and all major equipment overhauls. Include fixed costs for extended service warranty where applicable. If multiple rows are included in a fixed maintenance cost, please enter “included” or N/A in that row as applicable.

YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10

Prime Mover

Fuel Reformer

Stack Replacement

Generator

Heat Recovery/Thermal Equipment

Emissions Control

Remote Monitoring/Control

Warranty/Service Contracts

Other:

Total Service/Maintenance Costs


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FORM 5: FUEL CELLS INCENTIVE REQUEST CALCULATION

Total system rated Electric Capacity AC Kilowatts.________ Note: The maximum % of project cost for all state and Federal funding can not exceed 50%. An applicant can not receive both a Clean Energy Fuel Cell rebate and a performance grant. The applicant may apply for both however only one incentive can be applied to each project. The applicant may qualify for other financial assistance through BPU and or other State or federal programs *Spreadsheets provided by link with examples below may be used at the discretion of the Applicant. It is the sole responsibility of the applicant to produce and submit project specific calculations.

Incentive Calculations

3. Fuel Cell with generation less than or equal to 20 MW Electric Capacity (minimum 65% combined electrical and thermal efficiency) 4. Fuel Cell with generation greater than 20 MW Electric Capacity (minimum 70% combined electrical and thermal efficiency)

• Grant total amount ($) = Electric Capacity kw x $200/kw (with waste heat) $__________ kw x $150/kw (without waste heat) $ __________


Customer Name: _____________________________

Customer Signature: _________________________________________


Design Professional Name: ___________________________

Design Professional Signature: _________________________________________



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APPENDIX C: CERTIFICATIONS Verification of Application Information 1. “I certify under penalty of law that I have personally examined and am familiar with the information submitted in this document and all attachments and that, based on my inquiry of those individuals immediately responsible for obtaining the information, I believe that the information is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment. I understand that, in addition to criminal penalties, I may be liable for civil administrative penalties and that submitting false information may be grounds for denial, revocation or termination of any program funds for which I may be seeking approval or now hold.” 2. The certification in 1 above shall be signed by the Applicant’s highest level authority as follows:

i. For a corporation, by a principal executive officer of at least the level of vice president;

ii. For a partnership or sole proprietorship, by a general partner or the proprietor, respectively; or

iii. For a municipality, county, state, federal or other public agency, by either a principal executive officer or ranking elected official.

________________________________ (Signature and Title) ____________________________________________ (Name, please print) ____________________________________________ (Date)


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Independent Engineer Certification I hereby certify that the information provided herein is true and correct to the best of my knowledge. I understand that this application may be disqualified if the information provided is incorrect and/or does not contain all required information. I hereby agree to keep all supporting documentation and attachments for the life of the financial assistance and agree to provide this information to EDA upon request. I understand that all materials submitted as part of the Application are subject to disclosure. I certify that I am a Professional Engineer, licensed in the State of New Jersey. ____________________________________________ (Signature and Title) ____________________________________________ (Name, please print) ____________________________________________ (Professional Engineer License #) ____________________________________________ (License Expiration Date) ____________________________________________ (Date of Certification)


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Certification Regarding Debarment, Suspension or Ineligibility for Award The Applicant certifies, to the best of its knowledge and belief, that: (1) The Applicant and/or any of its principals ___ are, ___ are not presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by any federal or state agency, and (2) The Applicant and/or any of its principals ____ have, ___ have not, within a three-year period preceding this offer, been convicted of or had a civil judgment rendered against them for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain or performing a federal, state, or local government contract or subcontract; violation of federal or state antitrust statutes relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, or receiving stolen property; and ___ are, ___ are not presently indicted for, or otherwise criminally or civilly charged by a government entity with commission of any of those offenses.

____________________________________________ (Signature and Title) ____________________________________________ (Name, please print) ____________________________________________ (Date)


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CERTIFICATION OF APPLICATION

PLEASE NOTE: Eligibility of financial assistance by the New Jersey Board of Public Utilities is determined by the information presented in this application and the required attachments and schedules. Any changes in the status of the proposed project from the facts presented herein could disqualify the project, including but not limited to, the commencement of construction or the acquisition of assets such as land or equipment. Please contact the staff of the EDA before taking any action which would change the status of the project as reported herein. Please consult with the EDA staff for details concerning these matters. Only the BPU Board may take action to determine project eligibility and to authorize the issuance of funds. I, THE UNDERSIGNED, BEING DULY SWORN UPON MY OATH SAY:

1. I am aware of the BPU Prevailing Wage Requirement P.L. 2009, c. 203 and the “Affirmative Action Regulation” N.J.A.C. 17:27 and am prepared to comply with the requirements contained therein.

2. I affirm, represent, and warrant that the applicant has no outstanding obligations to any bank, loan company,

corporation, or individual not mentioned in the above application and attachments; that the information contained in this application and in all attachments submitted herewith is to the best of my knowledge true and complete and that the grant/loan applied for herein is not for personal, family, or household purposes.

3. I understand that if such information is willfully false, I am subject to criminal prosecution under N.J.S.A. 2C:28-

2 and civil action by the Agency which may at its option terminate its financial assistance.

4. I authorize the New Jersey Department of Law and Public Safety to verify any answer(s) contained herein through a search of its records, or records to which it has access, and to release the results of said research to the Agency.

5. I authorize the Agency to obtain such information including, but not limited to, a credit bureau check as it may

require, covering the applicant and/or its principals, stockholders and/or investor.

6. I authorize the Agency to provide information submitted to it by or on behalf of the applicant to any bank which might participate in the requested financing with the BPU.

I am an Authorized Signer and I accept the terms and conditions. Signature of Authorized Signer Printed Name and Title Date


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Clean Air and Water Certification

The Applicant certifies that:

(1) Any facility to be used in the performance of this proposed project is ___ is not ___ listed on the Environmental Protection Agency (EPA) List of Violating Facilities.

(2) The Applicant will immediately notify the EDA, before award, of the receipt of any communication indicating that the site the Applicant plans to use for the performance of the contract is under consideration to be listed on the EPA List of Violating Facilities.

(3) The Applicant will include a certification substantially the same as the certification, including this paragraph, in every nonexempt subcontract.

(4) The Applicant will notify the EDA if the site is in violation of any NJDEP regulations. ____________________________________________ (Signature and Title) ____________________________________________ (Name, please print) ____________________________________________ (Date)


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Historic Sites and Waste Management Certifications Historic Sites Certification a. The property which is the site of the project covered by this grant application is a US or NJ Registered Historic Site under N.J.A.C. 7:4-2. Yes_________ No ____________ b. If the property upon which the project covered in this grant application is located is a US or NJ Registered Historic Site, the property owner has received from NJDEP a determination that the project complies with all applicable requirements of N.J.A.C. 7:4. Yes_________ No ____________ ____________________________________________ (Signature and Title) ____________________________________________ (Name, please print) ____________________________________________ (Date) Waste Management Certification By signing this application, the applicant certifies that all applicable requirements of the NJDEP’s Solid Waste rules at N.J.A.C. 7:26 will be met. ____________________________________________ (Signature and Title) ____________________________________________ (Name, please print) ____________________________________________ (Date)


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APPENDIX D: SCORING CRITERIA

Large Scale CHP-Fuel Cells -- SCORING CRITERIA

The following scoring criteria will be utilized by the Evaluation Committee to assist in determining which projects to recommend for funding:

25% The project’s readiness to proceed /efficiency 10% The ability to create or maintain jobs.

30% Potential reduction in greenhouse gas emissions, criteria pollutants 35% Total energy to be created or saved

Point Score Evaluation Sheet

Grant Solicitation: The Large Scale CHP-Fuel Cells Program

Project:

Date:

Project Location:

Applicant/State Entity:

Evaluator:

Signature:

The evaluation criteria and relative weights are based on the program requirements and objectives.

Each Score must consist of a whole number. Decimals and fractions are not permissible. The score should reflect the extent to which grant proposal meets Solicitation criteria. There are four main categories to score: Project Readiness to Proceed/Efficiency, Job Creation and Retention, Greenhouse Gas Emissions and Criteria Pollutant Reduction and Energy Created or Saved. Within these categories are several individual metrics as listed in the table below. Each metric is given a score within a range of 0 to 5. The average score for the category is calculated, and then multiplied by the relative weight which produces a subtotal score. The subtotal scores of each category are then added to derive a final score. An Evaluation Committee expected to be comprised of representatives from government entities will review and recommend projects to be funded based upon the Applicant’s ability to meet the Evaluation Criteria set forth within the Solicitation. Projects must receive a minimum average score of “good” in all areas in order to move forward for consideration.


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Evaluation Criteria Avg.

Score Weight Subtotal

Project Readiness to Proceed/Efficiency

25%

Ability to create or retain jobs 10% Potential reduction in greenhouse gas emissions/criteria pollutants

30%

Total energy to be created or saved

35%

Scoring Sheet Score Project Readiness to Proceed/Efficiency: Sources of Funding Permit Standing -- Completed/Pending Construction Schedule (Dates Proposed to Start/Finish Project) Management Expertise System Efficiency Project Clarity Program Goals Project Preparedness / Efficiency Criteria Average Score: Job Creation and Retention: Number of Construction Jobs to be created (higher points) Number of Operations Jobs to be created retained (higher points) Jobs retained or secured by existence of plant Job Creation and Retention Average Score: Greenhouse Gas (GHG) Emissions / Criteria Pollutant Reduction: Reduction in Greenhouse Gas (GHG) Emissions Annual tons of Carbon Dioxide Equivalent (CO2e) reduced/$1000 requested

Reduction in Criteria Pollutants Emissions Annual tons of criteria pollutants reduced/$1000 requested

GHG Emissions Reduction and Criteria Pollutant Reductions Average Score: Energy Created or Saved: Dollars Requested/Annual electric reduction (mwh) Dollars Requested/ Annual thermal reduction (MMBtu) Energy Savings Average Score: Final Score Additional Comments:

Scoring Legend 5- Excellent 2 - Fair 4 – Very Good 1 – Poor 3 – Good 0–Not Addressed

NA–Not applicable


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APPENDIX E: NEW JERSEY PROTOCOLS

Combined Heat and Power (CHP) Program

Protocols The measurement of energy and demand savings for Combined Heat and Power (CHP) systems is based primarily on the characteristics of the individual CHP systems subject to the general principles set out below. The majority of the inputs used to estimate energy and demand impacts of CHP systems will be drawn from individual project applications. CHP systems typically use fossil fuels to generate electricity that displaces electric generation from other sources. Therefore, the electricity generated from a CHP system should not be reported as either electric energy savings or renewable energy generation. Alternatively, electric generation and capacity from CHP systems should be reported as Distributed Generation (DG) separate from energy savings and renewable energy generation. However, any waste heat recaptured and utilized should be reported as energy savings as, discussed below. Distributed Generation Electric Generation (MWh) = Estimated annual and lifetime electric generation in MWh provided on the project application, as adjusted during the project review and approval process. Electric Demand (kW) = Electric capacity of the CHP system in kW provided on the project application, as adjusted during the project review and approval process. Energy Savings Gas Energy Savings: Gas savings should be reported on a consistent basis by all applicants as the reduction in fuel related to the recapture of thermal energy (e.g., reduction in boiler gas associated with the recapture of waste heat from the CHP engine or turbine) Electric Energy Savings: Electric energy savings should be reported only in cases where the recapture of thermal energy from the CHP system is used to drive an absorption chiller that would displace electricity previously consumed for cooling. Emission Reductions For many CHP applications there can be substantial emission benefits due to the superior emission rates of many new CHP engines and turbines as compared to the average emission rate of electric generation units on the margin of the grid. However, CHP engines and turbines produce emissions, which should be offset against the displaced emissions from the electricity that would have been generated by the grid.1 The New Jersey Department of Environmental Protection (DEP) has provided the BPU with emission factors that are used to calculate the emission savings from energy efficiency and renewable energy projects. These factors should be used to calculate the base emission factors which the CHP system emission factors would be compared to. The emissions from the CHP system would be subtracted from the base emissions to determine the net emission changes as follows:

1 Summit Blue, Draft Energy Efficiency Market Assessment of New Jersey Clean Energy Program, Book III, Page 196, May 26, 2006


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Base Emission Factors DEP Emissions Reduction Factors for electric programs are as follows: - CO2 (Carbon Dioxide) emissions are reduced by 1172 lbs per MWh saved - NOx (Nitric Oxide) emission reductions are 2.8 lbs per MWh saved - SO2 (Sulfur Dioxide) emission reductions are 6.5 lbs per MWh saved CHP Emission Reduction Algorithms CO2e ER (lbs) = (1172 lb/MWh* Electrical Output (MWh)) + (Thermal Output (MMBtu) * 115 (lb/MMBtu)) – (CHP CO2EF * Electrical Output (MWh)) Assuming that the thermal output will replace the use of natural gas (CO2 emission coefficient of 115 lb/MMBtu) that would have been used to fuel a boiler or absorption chiller. NOx ER (lbs) = (2.8 * Electrical Output (MWh)) + (Thermal Output (MMBtu) * ECNG (lb/MMBtu)) – (CHP NOxEF * Electrical Output (MWh)) SO2 ER (lbs) = (6.5 * Electrical Output (MWh)) + (Thermal Output (MMBtu) * ECNG (lb/MMBtu)) – (CHP SO2EF * Electrical Output (MWh)) Definitions ER = Emission reductions in pounds CHP EF = the emission factors of the CHP system in pounds per MWh for each type of emission MWh = the estimated annual and lifetime generation from the CHP system Emission reductions from any CHP system energy savings, as discussed above, would be treated the same as any other energy savings reported.


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APPENDIX F: GRANT AGREEMENT

Agreement For

Grant Award

Between

New Jersey Board of Public Utilities and

^

________________________________________________________________________ This AGREEMENT for a GRANT AWARD (the “Agreement”), dated_____________, by and between the NEW JERSEY BOARD OF PUBLIC UTILITIES (the "BPU”), a public body corporate and politic constituting an instrumentality of the State of New Jersey (the “State”) and______________, (the "Grantee") with principal place of business located at _____________ .

BACKGROUND

WHEREAS, as set forth at N.J.S.A. 48:3-49 et seq., the Electric Discount and Energy Competition Act (“EDECA”), the BPU is directed to establish funding levels and programs that promote and advance energy efficiency and renewable energy programs in New Jersey. Pursuant thereto, the BPU by various Orders has established funding levels and collects money from customers through the utilities subject to the EDECA to fund these programs, among them being the Large Scale Combined Heat and Power – Fuel Cells Program (“CHP – Fuel Cells Program”), a new clean energy funding initiative in the form of grants for eligible large scale combined heat and power or fuel cells projects in the State; and

WHEREAS, the New Jersey Economic Development Authority (the “EDA” and/or “Authority”), a public body corporate and politic constituting an instrumentality of the State, having expertise in managing various financial assistance programs for economic development projects, has agreed to provide administrative support services to BPU in connection with BPU’s implementation of certain of its energy efficiency and renewable energy funding programs, including CHP – Fuel Cells Program; and

WHEREAS, pursuant to a memorandum of understanding, dated March 24, 2011, amended as of March 1, 2012 and as may be further amended from time to time (collectively the “MOU”), BPU and EDA have set forth their respective duties and responsibilities in connection with the joint implementation of the CHP – Fuel


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Cells Program; and

WHEREAS, notwithstanding the joint implementation of the CHP-Fuel Cells Program, as set forth in the MOU, in order to streamline and simplify the process for CHP-Fuel Cells Program recipients, the EDA has agreed to serve as the primary customer contact and to request BPU’s involvement in any approvals and/or decision making activities, as may be necessary; and

WHEREAS, the BPU and the EDA jointly issued a solicitation on April 25, 2012 in connection with the CHP-Fuel Cells Program (the “Solicitation”), the terms of which are incorporated herein; and

WHEREAS, Grantee submitted a proposal, dated _________ (the “Proposal”) for a Project, in response to the Solicitation. The terms of the Proposal are incorporated herein; and

WHEREAS, based on its Proposal, Grantee has been awarded a grant in the amount of {$ amount} (the “Grant” or “Award”) by the BPU under the CHP-Fuel Cells Program, the purpose of which is to fund eligible costs associated with its Project defined as __________________________ which Project will be located at _______________ (“Project Facility”).

Grantee and the BPU, intending to be legally bound hereto, for the promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, accept and agree to abide by the following terms and conditions set forth in this Agreement from the Effective Date hereof until five (5) years from the date that the Project comes online (“Term of Agreement”), unless otherwise specified in this Agreement. 1. GRANTEE REPRESENTATIONS 1) Grantee represents that it is registered to do business in and is in good standing under the laws of the State of __________ on the date of full execution of this Agreement by both Grantee and the BPU, which shall be the Effective Date. 2) Grantee represents that it is duly organized as a {Limited Liability Company or Corp.}, is validly existing, and is in good standing under the laws of the State of _____________as of the Effective Date. 3) Grantee represents that it has the corporate power and authority and legal right to execute and perform its obligations under this Agreement and that it has taken all necessary corporate action to authorize its execution and performance of obligations under this Agreement. 4) Grantee represents that all statements, representations and warranties made by Grantee in this Agreement and in its Proposal are true and complete. For purposes herein, “Proposal” shall mean Grantee’s submission dated _______________, in response to the Solicitation, including without limitation the application, all certifications executed in connection therewith and any other materials furnished to the BPU or EDA in support of its request for funding submitted in response to the Solicitation. It is specifically understood by Grantee that all such statements, representations and warranties shall be deemed to have been relied upon by the BPU in its decision to make the Award, and that if any such statements, representations or warranties were materially false at the time they were made or are breached from the date hereof until all such warranties and covenants shall have been fully satisfied, the BPU may, in its sole discretion, consider any such misrepresentation or breach an Event of Default under Section 9 of this Agreement.

5) Grantee represents that after due inquiry there is no legal action or proceeding pending or, to its


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knowledge, threatened against Grantee before any court or administrative agency that might adversely affect the ability of Grantee to perform its obligations under this Agreement and all authorizations, consents and approvals of governmental bodies or agencies required in connection with the performance of Grantee's obligations hereunder have been obtained and will be obtained whenever required hereunder or by law.

6) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by, or conflicts with or results in a breach of, the terms, conditions, or provisions of any corporate restrictions or any evidence of indebtedness, agreement or instrument of whatever nature to which Grantee is now a party or by which it is bound, or constitutes a default under any of the foregoing.

7) Grantee has, or will have, the right to occupy the Project Facility whenever acquired or arising free and clear of all liens and claims, encumbrances, set-offs, defenses and counterclaims, and has not made and will not make any assignment, pledge, mortgage, hypothecation or transfer (other than sales or leases in the ordinary course of business) of the Project Facility or the proceeds thereof, except as otherwise permitted herein.

8) Grantee agrees to use the Award solely in connection with funding eligible Project costs, as defined in the Solicitation and described in its Proposal.

9) The chief executive office of Grantee is located at _________________. Grantee shall notify the EDA in writing of any change in the location of Grantee's chief executive office. Grantee's books or records are maintained at ___________. None of Grantee's books or records are maintained at any other location. Grantee shall notify the EDA in writing of any change in the location of Grantee's books and records.

10) Grantee represents that it has at all times pertinent to this Agreement been represented by advisors of its own selection, including but not limited to attorneys-at-law and/or certified public accountants; that it has not relied upon any statement, representation, warranty, agreement or information provided by the BPU or the Authority, their employees, agents or attorneys; that it acknowledges that it is informed by its advisors of its respective rights, duties, and obligations with respect to the Award under all applicable laws.

11) If during any time the Grant remains outstanding, Grantee becomes aware of any facts, occurrences, information, statements, or events that render any of the foregoing representations or warranties herein made untrue or materially misleading or incomplete, Grantee shall immediately notify the EDA in writing of such facts, occurrences, information, statements or events.

12) Grantee represents and warrants that the Project Facility, as defined in the Proposal, is located within the service territory of an electric public utility whose customers pay a Societal Benefits Charge pursuant to N.J.S.A.48:3-60. 2. ENTITLEMENT TO FUNDS Upon full execution of this Agreement, Grantee shall be entitled to receive a total amount not to exceed $________________ in CHP-Fuel Cells Program funding from the BPU, subject to the terms and conditions stated herein, for the purposes set forth in its Proposal. Based on the Proposal, the BPU has determined that the technology is eligible and that Grantee qualifies for the Award. Grantee acknowledges and agree that both the initial provision of funding and the continuation of such funding under the Agreement is expressly dependent upon the availability to the BPU of funds appropriated by the State Legislature from State and/or Federal revenue or such other funding sources as may be applicable. A failure of


74

the BPU or EDA to make any payment under this Agreement or to observe and perform any condition on its part to be performed under the Agreement as a result of the failure of the Legislature to appropriate shall not in any manner constitute a breach of the Agreement by the BPU or EDA or an Event of Default under the Agreement and the BPU or EDA shall not be held liable for any breach of the Agreement because of the absence of available funding appropriations. In addition, future funding shall not be anticipated from the BPU beyond the duration of the award period set forth in this Agreement and in no event shall the Agreement be construed as a commitment by the BPU to expend funds beyond the funding period set in this Agreement. 3. PAYMENT OF FUNDS Payment of the Grant is expressly contingent on Grantee providing evidence satisfactory to the BPU that the Project has received all required local, State and/or Federal permits and/or approvals prior to _____________________(first disbursement date). If such evidence is not supplied, the BPU may, in its discretion, decide to reduce the Award or rescind the Award without any further obligation, financial or otherwise on the part of the State, the BPU or the EDA. Subject to the terms of this Agreement and availability of funds, disbursements shall be made to Grantee by the EDA on behalf of the BPU and shall be in three main payment streams, as follows: i) up to 30% of the Award upon the non-refundable deposit on Project equipment to be purchased; ii) up to 70% of the Award upon delivery of equipment (but not to exceed 90% of total amount awarded when combined with the prior disbursement amount disbursed to date) upon equipment delivery; and iii) balance of the Award upon system installation. Payments shall be based on achievement of mutually agreed upon specific milestones, as set forth in a certain milestone agreement dated the date hereof, and shall not be made until and unless Grantee submits detailed purchase orders supporting such requests for disbursement. Subject to the terms of this Agreement, disbursements shall be made during the Funding Period, as defined in Section 35 herein. Notwithstanding anything herein to the contrary, Grantee understands and agrees that the EDA shall be under no obligation to make any disbursement with respect to a requisition that has been submitted by Grantee, if, at the time of said submission, Grantee is in default under Section 9 of this Agreement. 4. USE OF FUNDS

Grantee agrees to use the Award solely in connection with funding the Project, as more fully described in its Proposal. The Award funds may be used only for allowable Project-costs which are supported with detailed purchase orders, which costs are described in Section 2.2 of the Solicitation {and Appendices F, G and H to the Solicitation}. Grantee acknowledges that the use of New Jersey contractors, suppliers, labor and products is preferred and agrees that, to the extent feasible and as represented in its Proposal, it shall use such New Jersey goods and services in connection with the Project. Failure to use of New Jersey contractors, suppliers, labor and products shall not constitute an Event of Default under Section 9 of this Agreement. Grantee may not use the Award to satisfy any obligation which arose prior to ________________________, which is the acceptance of its application by the BPU, as documented by the BPU commitment letter to Grantee. 5. GRANTEE WARRANTIES AND COVENANTS 1) Grantee agrees that its Project shall be commenced and completed expeditiously, as set forth in its Proposal, consistent with the preferences of the CHP-Fuel Cells Program.


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2) Grantee acknowledges that combined State and Federal funding for the Project cannot exceed fifty percent (50%) of the total Project costs. Total Project costs are currently estimated to be $___________. Grantee represents that it has obtained a firm commitment for a cash match of a minimum of fifty percent (50%) of the total Project costs from non-State and non-Federal derived sources. In the event that Grantee should receive public monies which would cause a violation of the foregoing restriction, Grantee agrees to promptly return such Grant funds to the BPU as are necessary so that it is no longer in violation of said restriction. 3) Grantee agrees that it shall establish by contract or other arrangement that the electric output generated by the Project shall, to the maximum extent feasible, be consumed at the Project Facility and that any surplus power produced that is not needed may be sold into the interstate PJM grid. 4) Grantee agrees that the combined heat and power or fuel cell equipment used in connection with the Project shall be commercially available and permanently installed and will have a useful life of at least five (5) years, subject to necessary major maintenance, including engine core change-out and rebuild. This provision shall survive expiration or earlier termination of this Agreement. 5) Grantee agrees to comply with all applicable environmental monitoring and data collection obligations prior to, during and following construction of the Project, including without limitation, information related to regulated pollutants, site-specific carbon emissions and displaced emissions from offsite energy production which would have occurred absent the Project. Grantee agrees to confer with the State Department of Environmental Protection (“DEP”) Office of Climate and Energy when compiling the data. 6) Grantee agrees that it shall create and/or retain jobs, reduce greenhouse gas emissions, increase sources of renewable energy, and/or reduce energy consumption in the State, as more fully set forth in its Proposal. 7) Grantee agrees that it shall not subcontract or assign any of the work or services to be performed by it in relation to the Project, except as may otherwise be set forth in its Proposal and except with the prior written consent of the BPU.

8) Grantee agrees that it shall not assign or transfer the whole or any part of this Agreement without the prior written consent of the BPU. Grantee further agrees that it shall not sell, lease, convey, assign, transfer or otherwise dispose of any use or possessory interest in the Project Facility without the prior written consent of the BPU, except that the Grantee may grant utility, access and other easements and rights-of-way which will not impair the Grantee’s use of the Project Facility. No permitted subleasing or assignment shall relieve Grantee from primary liability under the Agreement. 6. PUBLICITY POLICY All publications resulting from publicity releases concerning the Project shall acknowledge the support of the BPU and the CHP - Fuel Cells Program, and the BPU shall have the right to review for accuracy any press release or other public statement prior to issuance by Grantee in connection with the Project. When feasible, Grantee shall provide notice to BPU or EDA at least 48 hours prior to any publicity release concerning the Project. 7. COMPLIANCE WITH EXISTING LAWS


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Grantee agrees to comply with, and require all contractors and consultants used by it in relation to the Project to comply with, all Federal, State and municipal laws, rules and regulations applicable to all activities performed by, or on behalf of, Grantee in pursuit of and in relation to the Project. These laws and regulations include, but are not limited to: Federal Office of Management and Budget documents; NJ Treasury Circular Letters 04-04-OMB, 07-05-OMB found at http://www.state.nj.us/infobank/circular/cir0404b.htm and http://www.state.nj.us/infobank/circular/cir0705b.pdf, and State Grant Compliance Supplement found at http://www.state.nj.us/treasury/omb/publications/grant/index.shtml; N.J.A.C. 17:27, applicable provisions of N.J.S.A 10:5, et. al., and P.L. 1975, c.127 and all implementing regulations (Affirmative Action Rules), where applicable; N.J.S.A. 48:2-29.47 et seq (“Prevailing Wage Act”), as amended by P.L. 2009, ch. 203, where applicable; P.L. 1975, c.127 N.J.S.A. 10:5-31 et. seq. (Equal Opportunity in Public Works Contracts), where applicable, and all implementing regulations; the Americans with Disabilities Act and implementing regulations and guidelines, where applicable; all applicable Federal, State or municipal environmental laws, rules and regulations, and all applicable requirements set forth in any Appendix to the Solicitation and to this Agreement. Failure to comply with such laws, rules or regulations shall be considered an Event of Default under Section 9 herein, giving the BPU the right to exercise any or all of its remedies set forth herein, including without limitation, the right to terminate this Agreement. 8. CONFLICT OF INTEREST Grantee agrees to abide by the provisions of N.J.S.A 52:13D et seq. (the New Jersey Conflicts of Interest Law) governing activities between Grantee and State officers and employees, Special State officers and employees, and members of the Legislature. The provisions of N.J.S.A. 52:13D-12 et seq. are incorporated herein in their entirety, by reference thereto. Grantee represents and warrants that it has not and will not at any time in the future act in violation of said statutory provisions or the regulations promulgated thereunder. Any violation of said prohibitions shall render Grantee liable to debarment in the public interest. 9. EVENTS OF DEFAULT Any one or more of the following shall constitute an Event of Default under this Agreement: 1) Breaches of Covenants. Grantee shall fail to observe or perform any covenant, obligation, condition or agreement contained in this Agreement and (i) such failure shall continue for a period of thirty (30) days after receipt by Grantee of written notice by the EDA to Grantee, specifying the nature of such failure and requesting that it be remedied; or (ii) if by reason of the nature of such failure the same cannot be remedied within the said 30 days, Grantee fails to commence a cure in a manner reasonably satisfactory to the BPU after receipt of said notice to cure same; or 2) Representations and Warranties. Any representation, covenant, warranty, certificate, or other statement (financial or otherwise) made or furnished by or on behalf of Grantee to the BPU or EDA in writing in connection with this Agreement, or as an inducement to the BPU to enter into this Agreement, shall be false, incorrect, incomplete or misleading in any material respect when made or furnished; or 3) Other Payment Obligations. Any indebtedness under any bonds, debentures, notes or other evidences of indebtedness for money borrowed, or any guarantees thereof, by Grantee in an aggregate principal amount in excess of $100,000 is not paid when due either at its stated maturity or upon acceleration thereof, and such indebtedness is not discharged, or such acceleration is not rescinded or annulled; or 4) Voluntary Bankruptcy or Insolvency Proceedings. Grantee shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property,


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(ii) be unable, or admit in writing its inability, to pay its debts generally as they mature, (iii) make a general assignment for the benefit of its or any of its creditors, (iv) be dissolved or liquidated, (v) become insolvent (as such term may be defined or interpreted under any applicable statute), (vi) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced against it, or (vii) take any action for the purpose of effecting any of the foregoing; or 5) Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator or custodian of Grantee or of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to Grantee or the debts thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within thirty (30) days of commencement; or 6) Judgments. A final judgment or order for the payment of money in excess of $100,000 shall be rendered against Grantee and the same shall remain undischarged for a period of thirty (30) days during which execution shall not be effectively stayed, or any judgment, writ, assessment, warrant of attachment, or execution or similar process shall be issued or levied against a substantial part of the property of Grantee and such judgment, writ, or similar process shall not be released, stayed, vacated or otherwise dismissed within thirty (30) days after issue or levy; or 7) Transaction Documents. This Agreement or any material term thereof shall cease to be, or be asserted by Grantee not to be, a legal, valid and binding obligation of Grantee enforceable in accordance with its terms; or 8) Material Adverse Effect. One or more conditions exist or events have occurred which could reasonably indicate, or reasonably result in, a Material Adverse Effect. For purposes of this Agreement, “Material Adverse Effect” shall mean a material adverse effect on (a) the business, assets, operations, prospects or financial or other condition of Grantee; (b) the ability of Grantee to perform the obligations in accordance with the terms of this Agreement and to avoid an Event of Default, or an event which, with the giving of notice or the passage of time or both, would constitute an Event of Default under this Agreement; or (c) the rights and remedies of the BPU under this Agreement, or any related document, instrument or agreement; or

9) Cross-default. It is specifically understood and agreed that this Grant is cross-defaulted with any existing assistance and any new assistance provided by the BPU, the EDA or the State to the Grantee and/or any of its subsidiaries, including but not limited to, entities that may not be related to the Grantee and/or any of its subsidiaries, but contain common principals.

10) Performance: Any violation under section 11 of this Agreement shall constitute an Event of

Default. Any remedies identified in section 11 shall be in addition to those described in section 10.

10. REMEDIES IN EVENT OF DEFAULT Whenever any Event of Default shall have occurred and be continuing, the BPU may take one or more of the following actions, as appropriate in the circumstances: a) suspend the Award and withhold further funding pending corrective action by the Grantee;


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b) terminate this Agreement in whole or in part. The BPU shall promptly notify the Grantee, in writing,

of the termination and the reasons for the termination, together with the effective date of such termination. In case of a partial termination, the BPU shall specify that portion being terminated. When the Agreement is terminated pursuant to this paragraph, payments made to the Grantee shall be terminated and any funds already distributed that are determined by the BPU to be recoverable shall be returned within thirty (30) days of demand thereof by the BPU. c) terminate any obligation it may have to make a payment to Grantee; d) pursue other remedies at law or in equity as may be within its legal right. The costs of the Grantee resulting from obligations incurred by it during a suspension of the Award or after termination of the Agreement are not allowable unless the BPU expressly authorizes them in the notice of suspension or termination or subsequently. Such costs may be allowed if the BPU in its sole discretion determines that they are: (1) necessary; (2) not reasonably avoidable; (3) were properly incurred by the Grantee before the effective date of suspension or termination; (4) are not in anticipation of suspension or termination; (5) in the case of a termination, are non cancelable; and (6) the costs would be allowable if the Award were not suspended or the Agreement terminated. No remedy herein conferred or reserved to the BPU is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof. 11. PERFORMANCE-BASED RIGHT TO TERMINATE/REDUCE GRANT 1) The Project must operate and provide the amount of electric power and thermal energy and meet the efficiency requirements that the Grantee committed to in its Proposal. In the event that the Project does not provide such amount of electric power, thermal energy or meet such efficiency requirements, the Grantee shall take such actions as are necessary in order to ensure that the Project meets or exceeds the performance goals set forth in the Proposal. 2) The amount of the Grant is a function of the system size and amount of electricity that the CHP-Fuel Cells project generates as estimated at the time of approval of the Award and based upon expectations and assurances set forth in the Proposal. In the event that there are downward changes in such expectations and/or assurances from the date of the Proposal or this Agreement, or changes in the Project after completion, the BPU shall have the right, in its sole discretion, to terminate the Agreement in whole or in part and/or reduce the amount and change the timing of the payments made under the Grant. 3) If the Project consistently generates less than the estimates set forth in the Proposal or any revised estimates which have thereafter been approved by the BPU, the BPU shall have the right, in its sole discretion, to reduce the Grant amount accordingly, or to terminate the Agreement, as appropriate or require repayment of disbursed funds, as appropriate. The BPU will have the final determination as to the qualifying energy production at the Project.


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4) The Project as described in the Proposal is expected to come on-line by the date specified in the Proposal. In the event that the Project fails to come on-line by said date, the amount of the Grant may be reduced or the Grant may be terminated, and thereupon the Grantee shall not be entitled to receive any further amounts under the Grant.

12. CHANGES IN PROJECT The Project was designed and proposed as a feasible, viable project that can be permitted by all relevant jurisdictions. The BPU, however, recognizes that some changes to the Project as described in Grantee’s Proposal may be required during the term of this Agreement. Grantee shall notify the BPU in advance in writing and obtain advance written BPU consent for any such proposed change. If the BPU determines that the proposed change will not have a Material Adverse Effect, it shall so advise Grantee in writing of this determination, and Grantee shall be authorized to make such change, subject to any conditions imposed by the BPU thereon. If the BPU determines that the proposed change will have a Material Adverse Effect and denies the request to make the change, Grantee shall be barred from making the change or risk causing an Event of Default under Section 9 of this Agreement. 13. MODIFICATIONS Grantee shall notify the BPU in writing and obtain advance written consent from BPU when a revision or modification to the Agreement is purported to be necessary for any of the following reasons: 1) changes in the scope, objective, key personnel, timing of the Project, or deviation from the approved budget; 2) the need for additional funding or to extend the period of availability of funds; 3) to secure the services of a third party to perform activities that are central to the purpose of the Award; 4) adjustments between cost categories and/or shifts of funding to direct cost categories that are not part of the approved budget; 5) Grantee plans to transfer funds that would cause the Award, or part thereof, to be used for a purpose other than that originally indicated. The BPU, at its option, may establish a policy to restrict transfers of funds among direct cost categories, and Grantee is required to comply with any applicable Federal or State requirements concerning prior approval of budget changes. The BPU may further request changes in the scope of services of the Grantee to be performed hereunder. Such changes, which are mutually agreed upon by and between the BPU and Grantee, must be incorporated in written amendments to this Agreement. 14. INDEMNIFICATION


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Grantee covenants and agrees that neither the BPU, the Authority, the State, nor their members, agents, servants, officers or employees shall be liable for: (1) any loss, damage or injury to, or death of, any person occurring at or about or resulting from any defect in the Project Facility; (2) any damage or injury to the persons or property of Grantee, or its officers, agents, servants or employees, or any other person who may be about the Project Facility, caused by any act of negligence of any person (other than the BPU or its members, officers, agents, servants or employees); or (3) any costs, expenses or damages incurred as a result of any lawsuit commenced because of action taken in good faith by the BPU or the Authority in connection with the Project Facility. Grantee shall indemnify, protect, defend and hold the BPU, the Authority, the State, their respective members, agents, servants, officers and employees (each an "Indemnified Party"), harmless from and against any and all such losses, damages, injuries, costs or expenses and (except for claims, demands, suits, actions or other proceedings brought against an Indemnified Party resulting from willful or wanton misconduct of such Indemnified Party) from and against any and all claims, demands, suits, actions or other proceedings whatsoever, brought by any person or entity whatsoever, (except Borrower) and arising or purportedly arising from this Agreement, or from the construction, ownership and operation of the Project Facility. This provision shall survive the expiration or earlier termination of this Agreement. 15. NOTICES

1) Environmental Events. Grantee shall promptly give written notice to the BPU (i) of any violation of any environmental law, rule or regulation that could reasonably be expected to result in a Material Adverse Effect or that Grantee reports in writing (or for which any written report supplemental to any oral report is made) to any governmental authority, (ii) upon becoming aware thereof, of any inquiry, proceeding, investigation, claim, complaint, suit or other action, including a notice from any agency of potential environmental liability, of any governmental authority or any third party, that could reasonably be expected to result in a Material Adverse Effect, and (iii) of any environmental, health or safety condition that could reasonably be expected to result in a Material Adverse Effect.

2) Notice of Litigation and Judgments. Grantee shall give notice to the BPU in writing within fifteen (15) days of becoming aware of any litigation or proceedings threatened in writing or any pending litigation and proceedings affecting Grantee or to which Grantee is or becomes a party involving any claim against Grantee that could reasonably be expected to result in a Material Adverse Effect and stating the nature and status of such litigation or proceedings. Grantee will give notice to the BPU, in writing, in form and detail reasonably satisfactory to the BPU, within ten (10) days of any judgment, final or otherwise, against Grantee.

3) Notice of Material Events. Grantee will give notice to the BPU in writing within ten (10) days of becoming aware of any fact, circumstance, occurrence or event that could reasonably be expected to result in a Material Adverse Effect. Any notices, demands and communications hereunder shall be given by certified or overnight mail and shall be addressed to: For Grantee: ^ For the BPU: New Jersey Board of Public Utilities 44 South Clinton Avenue Trenton, NJ 08625 Attn: Director-Office of Clean Energy


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For the Authority: New Jersey Economic Development Authority 36 West State Street, P.O. Box 990 Trenton, NJ 08625-0990 Attn: Finance and Bond Portfolio Management Any changes or additions to the notice provisions above shall be made in writing and delivered to the other parties as provided above. 16. IDENTIFICATION OF KEY PERSONNEL Grantee shall identify and maintain an individual with the principal responsibility for the management of the Project, and maintaining an adequate financial management system designated as the Project Manager, and shall advise the BPU in writing of the identity of this individual. Grantee must advise BPU of changes to any key personnel within ______ days of the change. 17. FINANCIAL MANAGEMENT SYSTEM The Project Manager shall be responsible for maintaining a financial management system in compliance with this Agreement. The Project Manager shall notify the BPU immediately if the Grantee cannot comply with the requirements established herein. Compliance with any provision of this Agreement relating to financial or accounting computation or reporting shall be determined in accordance with generally accepted principals of accounting (“GAAP”). The financial management system shall provide for: 1) accurate, current and complete records of the financial results of the Project capable of being reported in a format in accordance with the financial reporting requirements as described herein; and 2) records that adequately identify the source and application of CHP - Fuel Cells Program funds - supported activities, containing information pertaining to awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays of expenditures, and income; and 3) effective internal and accounting controls over funds, property, and other assets, which shall be safeguarded by the Grantee and used solely for authorized purposes; and 4) comparison of actual expenditures or outlays with budgeted amounts for the Award, which shall be related to physical Project site assessment, design and procurement in the State; and 5) procedures for determining reasonableness, allowability, and allocability of costs, consistent with the provisions of Federal and State requirements; and 6) accounting records that are supported by source documentation; and 7) procedures to minimize the time elapsing between the advance of funds by the BPU and the use by the Grantee.


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The BPU may review the adequacy of the Grantee’s financial management system at any time for two (2) years commencing from the Effective Date. If the BPU determines that the Grantee’s system does not meet the standards described in this Section 17, additional information may be required by the BPU upon written notice to the Grantee. This information shall be provided to the BPU until such time as the BPU determines that the system meets with the BPU approval. If Grantee fails to provide such information to the satisfaction of the BPU, or if the BPU determines that the Grantee has consistently failed to maintain the proper financial management system, the BPU may consider such failure an Event of Default under this Agreement. The BPU may also require the submission of a “Certification to Adequacy of Accounting System” as provided in Attachment A of this Agreement. 18. FINANCIAL AND PERFORMANCE REPORTING Grantee agrees to furnish to the EDA on behalf of the BPU: (a) within 120 days of the end of each fiscal year, annual audited financial statements for Grantee prepared by an independent certified public accountant, along with updated annual financial projections for the fiscal year with an explanation of variances from planned projections; and (b) within 15 days of the end of each quarter, quarterly management prepared Project performance reports (submitted to both EDA and BPU Clean Energy Program); (c) together with the Project report described in paragraph (b) within 45 days from the end of each fiscal quarter, internally prepared financial statements including balance sheet, income statement and statement of cash flows for the preceding twelve-month period ending on such June 30; and (d) within ten (10) days of filing, signed copies of Grantee’s Federal and State income tax return; and (e) concurrently with the annual financial statements, a certificate of Grantee stating that: (i) all taxes, assessments and charges which have become due have been paid or specifying which have not been paid and stating why they remain so; and (ii) Grantee has not failed to comply with any obligations under this Agreement or specifying any such failure and the reasons for such failure; and (iii) a summary report of all non-CHP-Fuel Cells Program resources expended by the Grantee in support of the Project. Failure to submit any of the above reports or records as required shall constitute an Event of Default under this Agreement. 19. PROPERTY MANAGEMENT STANDARDS


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Property furnished by the State or acquired in whole or in part with Federal or State funds or whose cost was charged to a project supported by State or Federal funds shall be utilized and disposed of in a manner generally consistent with State or Federal requirements. 20. PROCUREMENT STANDARDS Procurement of supplies, equipment, or other services with funds provided by this Grant shall be accomplished in a manner generally consistent with applicable Federal and State requirements. Adherence to the standards contained in the applicable Federal and State laws does not relieve the Grantee of the contractual responsibilities arising under its procurements. The Grantee is the responsible entity, without recourse to the BPU, regarding the settlement and satisfaction of all contractual and administrative issues arising out of procurement entered in support of the Grant. 21. REPORTING The Grantee shall fully cooperate with the BPU and the Authority, and their respective consultants and agents, in meeting the various reporting requirements of the CHP - Fuel Cells Program, including, but not limited to, Attachment B. 22. MONITORING OF PERFORMANCE The Grantee shall continually monitor the performance of the Project to assure that time schedules are being met, projected work units by time periods are being accomplished, and other performance goals are being achieved, as applicable. The Grantee must ensure compliance with any applicable Federal performance requirements. The Grantee shall inform the EDA on behalf of the BPU of the following types of conditions which affect the Project objectives and performance as soon as they become known: 1) problems, delays or adverse conditions which will materially impair the ability to complete the Project, prevent the meeting of time schedules and goals, or preclude the attainment of Project work units by established time periods, accompanied by a statement of the action taken, or contemplated; and 2) favorable developments or events which enable meeting time schedules and goals sooner than anticipated or at less cost, or producing more beneficial results than originally planned. The BPU and the EDA may, at their discretion, make site visits to review Project accomplishments and management control systems, and perform fiscal reviews to ensure Grant funds are being properly expended in a timely manner. 23. AUDIT REQUIREMENTS Grantees shall perform an annual audit for each fiscal year in which the Grantee expends Grant funds, consistent with the New Jersey Department of Treasury Circular Letter (04-04-OMB), “Single Audit Policy for


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Recipients of Federal Grants, State Grants and State Aid Payments”; and with the Federal Single Audit Act of 1984, as amended. All audits will be conducted on an organization wide basis and on the Grantee’s fiscal year, which ends on __________________. Any changes in fiscal year must be reported immediately to the BPU. 24. ACCESS TO RECORDS The Grantee agrees to make available to the BPU, the EDA and any State or Federal agency whose funds are expended in the course of this Project, or any of their duly authorized representatives, pertinent accounting records, books, documents, electronic files, and other items as may be necessary to monitor and audit operation finances. All visitations, inspections and audits, including visits and requests for documentation, in discharge of the BPU’s or EDA’s responsibilities shall as a general rule provide for prior notice when reasonable and practical to do so. However, the BPU and EDA retain the right to make unannounced visitations, inspections, and audits as deemed necessary. The BPU reserves the right to have access to all work papers produced in connection with audits made by the Grantee or by independent certified public accountants, registered municipal accountants, registered municipal accountants, or licensed public accountants hired by the Grantee to perform such audits. 25. INSURANCE Grantee agrees to carry general liability insurance and other such insurance against loss, damage and liability as is customary within its industry, to be held with insurance companies licensed to do business in the State that extends to include the purposes and intent of this Award. The BPU, the EDA and the State shall be named as additional insured parties on any such policies, evidence of which shall be provided at closing. 26. TAXES, ASSESSMENTS AND GOVERNMENTAL CHARGES Grantee warrants and represents that all tax returns and reports of Grantee required by law to be filed have been duly filed and all taxes, assessments, fees and other governmental charges upon the Grantee or upon any of its respective properties, assets, income or franchises which are due and payable pursuant to such returns and reports, or pursuant to any assessment received by the Grantee have been paid, other than those which may be presently payable without penalty or interest. Grantee agrees to pay as they become due, all taxes, assessments and governmental charges, which may be required by law or contract to be paid by the Grantee. Grantee may in good faith contest such taxes and governmental charges and such taxes and charges may remain unpaid during the period of such contest, without triggering an Event of Default under Section 9 of this Agreement. 27. PROGRAM INCOME Program income shall be defined as gross income earned by the Grantee from Grant-supported activities. Such earnings include, but will not be limited to, income from service fees, sale of commodities, usage of rental fees and royalties on patents and copyrights. If the Grantee receives interest earned of $250 or more in a fiscal year on advances of Grant funds, interest shall be reported to the BPU. All program income shall be retained by Grantee in accordance with the terms and conditions of this Agreement. 28. RECORD RETENTION


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Except as otherwise noted herein in this Agreement, financial and Project records, supporting documents, statistical records, and all other records pertinent to this Agreement shall be retained for a period of seven years after the Date of Completion, as defined in Section II Award Closeout. If any litigation, claim, negotiation, action or audit involving the records is started before the expiration of the seven year period, the records must be retained until final completion of the action and resolution of all issues which arise from it, or until the end of the regular seven year period, whichever is later. Records for nonexpendable property acquired with Grant funds shall be retained for seven years after its final disposition, unless otherwise directed by the BPU. The BPU may request the transfer of certain records to its custody from the Grantee when it determines that the records possess long-term retention value and will make arrangements with the Grantee to retain any records that are continuously needed for joint use. 29. ENTIRE AGREEMENT This Agreement and the attachments hereto embody the entire Agreement and understanding between the Grantee and the BPU and supersede all prior agreements and understandings, both written and oral, between the parties relating to the subject matter herein. All modifications, waivers, and amendments hereto must be made in writing by mutual agreement of the parties, except as otherwise stated herein. 30. JURISDICTION AND CHOICE OF LAW Jurisdiction of any action hereunder shall lie in a court of competent jurisdiction in the State and shall be construed in accordance with the laws of the State applicable to contracts made and performed in the State. 31. CONSTRUCTION Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under the applicable law, but, if any provision of this Agreement shall be held to be prohibited or invalid under such applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement. The parties hereto agree that to the extent there is any inconsistency between the terms of this Agreement and the terms of the Solicitation or the Proposal, the Agreement shall control. To the extent there is any inconsistency between the terms of the Solicitation and the terms of the Proposal, the Solicitation shall control . 32. COUNTERPARTS This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument and may be delivered by telecopier, e-mail, PDF or other facsimile transmission all with the same force and affect as if the same were fully executed and delivered original manual counterpart. 33. EFFECT OF AGREEEMENT All terms and conditions of this Agreement shall remain in full force and effect until the expiration or earlier termination of this Agreement as provided for hereunder, or if the BPU otherwise releases Grantee, in writing, from some or all obligations contained herein, subject to any provisions which by their terms expressly survive any such events. 34. WAIVER OF RIGHT TO TRIAL BY JURY


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Grantee waives any right to trial by jury on any claim, demand, action or cause of action arising under this Agreement or the transactions related hereto, in each case whether sounding in contract or tort or otherwise. Grantee agrees and consents that any such claim, demand, action or cause of action shall be decided by court trial without a jury, and that any party to this Agreement may file an original counterpart or a copy of this section with any court as written evidence of the consent of Grantee to the waiver of its right to trial by jury. Grantee acknowledges that it has had the opportunity to consult with counsel regarding this section, that it fully understands its terms, content and effect, and that it voluntarily and knowingly agrees to the terms of this section. 35. FUNDING PERIOD

The period of funding (“Funding Period”) shall commence on the Effective Date and shall end upon the earlier to occur of the following: i) twenty four (24) months from the Effective Date; and ii) that date upon which the Award has been fully disbursed. The Grantee must satisfy all obligations incurred under this Award not later than thirty (30) days after the end of the Funding Period unless specific authority to extend this deadline is granted, in writing, by BPU.

II. AWARD CLOSEOUT

Section 1. PROCEDURES.

EDA upon instruction from BPU shall close out the Award provided herein when it determines that all applicable administrative action and all required work pertaining to the Award have been completed by the Grantee.

The “Date of Completion” of this Agreement shall be when all activities related to the Award are completed or the Funding Period has expired, whichever occurs first.

The Grantee shall submit a final report pursuant to Section II.2. below upon the Date of Completion or termination of the Award, whichever occurs first.

Upon the Date of Completion or termination of the Award by BPU, the Grantee will, together with the submission of the final report, refund BPU any unexpended funds or unobligated (unencumbered) cash advanced, except such sums that have been otherwise authorized in writing by BPU to be retained.

Section 2. AWARD CLOSE OUT FINANCIAL AND PERFORMANCE REPORTING.

Final reports shall be submitted to EDA by Grantee no later than thirty (30) days after the Date of Completion or termination of the Award. At minimum, these final reports shall include:

(a) a summary report of all non-BPU resources expended by Grantee in support of


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the Project; and

(b) a final comparison of actual to budget expenditures. The accuracy of this financial report shall be certified, in writing, by the Financial Manager.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties, duly authorized and intending to be legally bound hereto, execute this Agreement, as of the date last written below, which shall be the Effective Date. ^ WITNESS: ____________________________ By:___________________________ Name: Date:_____________ Title: WITNESS: NEW JERSEY BOARD OF PUBLIC UTILITY


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____________________________ By:___________________________ Robert M. Hanna Date_____________ President STATE OF NEW JERSEY :

: SS.:

COUNTY OF :

BE IT REMEMBERED, that on this ____ day of ________ , 2012, before me, the subscriber, personally appeared ^, a ^ of ^, a limited liability company, who, I am satisfied is the person who

executed the foregoing Instrument on behalf of said limited liability company, and who thereupon

acknowledged that he signed and delivered said Instrument as ^, and that said Instrument is the voluntary act

and deed of said limited liability company.

_________________________________


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MILESTONE AGREEMENT This Milestone Agreement dated as of ________________ ("Milestone Agreement") sets forth the Milestone referred to in that certain Agreement for Grant Award between the New Jersey Board of Public Utilities ("BPU") and ____________________ ("Grantee"). Grantee has received a grant from the BPU in the Amount of _________________ ("Grant"). The Grant will Finance _____________________. Grant Proceeds to be advanced as set forth below:


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Attachment A

STATEMENT OF ADEQUACY OF ACCOUNTING SYSTEM* If Grantee is a governmental agency, complete Section A. If Grantee is a non-governmental agency, complete Section B. =============================================================================== Section A: Governmental Agency I am the _____________________________ of ________________________________ and, in this capacity, I will be responsible for (Print title of Chief Financial Officer) (print name of Grantee) establishing and maintaining the financial statements for _____________________________________________________________. (print project name) The accounting system that will be established and maintained for the purpose of this agreement will be adequate to: 1. provide for accurate identification of the receipts and expenditures of funds by approved budget cost categories; 2. provide for documentation supporting each book entry, filed in such a way that it can be easily located; 3. provide accurate and current financial reporting information; 4. be integrated with a strong system of internal controls; and 5. conform to any and all requirements or guidelines that the Board may issue. Date: _______________________ __________________________________________________________ (signature) _________________________________________________________________ (print name) =============================================================================== Section B: Non-governmental Agency I am a [ ]certified public accountant [ ]duly licensed public accountant and have been engaged to examine the financial statements of ___________________________________________ which will be maintained for ________________________________________. (print name of Grantee) (print project name) In my opinion, the accounting system and internal controls [ ]in use [ ]to be established on _________________________________ for this agreement [ ]are [ ]will be adequate to:


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1. provide for accurate identification of the receipts and expenditures of funds by approved budget cost categories; 2. provide for documentation supporting each book entry, filed in such a way that it can be easily located; 3. provide accurate and current financial reporting information; and 4. conform to any and all requirements or guidelines that the Board may issue. Date: _____________________________ _________________________________________________________________ (signature) _________________________________________________________________ (print name) _________________________________________________________________ (print title)


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Attachment B

Quarterly Progress Report Applicants must submit progress reports to the designated project manager by the 15th of the month following the reporting period covered. Quarterly reports shall summarize progress, difficulties, and planned solutions associated with developing and installing the CHP Project. After construction, quarterly reports shall summarize the CHP Project’s performance and identify all reported energy production which will form the basis for payments under the Grant. The PJM Generator Attribute Tracking System (PJMGATS) will be utilized to report the electrical production of the CHP units and onsite metering will be utilized for the purpose of reporting thermal energy production. An example of a quarterly activity progress report follows: (Include Milestone activity as submitted in application. Modify to include your specific project activities.) Actual Scheduled/Budgeted* Explain Difference

in Actual Status/Funding vs. Schedule/Budget

Date/Status

$

Date/Status

$

Milestone activities:

Air Emissions Permit Application

150 Day Go/No Go Decision Point

Project Financing Equipment Procurement


93

Construction Permits

Equipment Delivered to site

System Installation Complete

Installed System Shakedown Complete

Full Scale System Verification (commercial operation) minimum 160 continuous hours

CHP Project Complete

Total Funds Spent to Date

*As approved/revised