MTC - Clean Energy Pre-Development Financing Initiative (Loans)

Applications were due October 15, 2008. It is not clear is this program will be available in 2009, check the program website directly for updates. The Clean Energy Pre-Development Financing Initiative offers grants and loans to support the development of grid-connected renewable energy systems in New England. Eligible technologies or resources include wind energy; naturally flowing water and hydroelectric power; landfill gas; anaerobic digestion; and low-emission, advanced power-conversion technologies using “eligible biomass fuel,” as provided for in 225 CMR 14.05(1)(a)6. This solicitation is not intended to support projects using waste-to-energy or ocean thermal, wave or tidal energy technologies. Two types of funding are available under this solicitation: funding for feasibility studies and funding for pre-development activities (e.g., facility design, environmental studies, permitting and similar activities). Funding for feasibility studies is available only to private non-profit organizations in the form of unsecured loans of up to $50,000. Funding for pre-development activities is available to public instrumentalities, private non-profit organizations, and private for-profit corporations or partnerships, and takes the form of an unsecured loan of up to $250,000 for wind and biomass projects, or up to $150,000 for other types of renewable energy projects. A minimum cost-share of 25% is required for all projects. Biomass and wind-energy projects must have a minimum capacity of three megawatts (MW); hydroelectric, digester gas, and landfill-gas projects must have a minimum capacity of 250 kilowatts (kW). Projects must be designed to lead to the development of new renewable grid-connected generating capacity for the wholesale electricity market. Therefore, more than 50% of the renewable energy produced must be provided to the wholesale market. Systems may be located in any of the six New England states. However, if the systems is designed to provide some power directly to an on-site end-user (not including parasitic loads), then the proposed facility must be located in Massachusetts. Funding awards for feasibility studies may be used to:determine the applicable facility size and configuration; assess the renewable-energy resource; analyze potential environmental impacts; identify regulatory requirements and the timeframes for complying with such requirements; evaluate potential development financing arrangements; and conduct cost analyses or development of preliminary pro-forma financials.Funding awards for pre-development activities may be used to:finalize site purchase arrangements; analyze and assess environmental, electric system and other impacts of the proposed facility; prepare environmental impact studies and reports; prepare permitting documents; refine the development strategy; prepare the facility design, technical specifications and securing of equipment/construction quotes; develop detailed financial analysis and preparation of legal documents in connection with the development or financing; conduct outreach and education; and market and negotiate for energy and renewable-energy credit (REC) sales.Applications are accepted on a rolling basis. The solicitation will remain open until all funds are fully allocated. See the solicitation for more details. * Eligible public instrumentalities include federal-government entities, Massachusetts state-government entities, Massachusetts local-government entities and Massachusetts public authorities.