Utilizing Clean Renewable Energy Bonds for Our Communities. WC CERTS Meeting Sunburg April 29, 2008

Transcription

1 Utilizing Clean Renewable Energy Bonds for Our Communities WC CERTS Meeting Sunburg April 29, 2008

2 Overview: 1.Agricultural Research Station NWROC 2.Serve as Living Lab and Public Access Point NCROC 3.Developing Community Scale Renewable Energy Systems 4.Focus on Local Ownership WCROC SWROC St. Paul SROC

3 Clean Renewable Energy Bonds (CREBs) University of Minnesota CREB Bonds: 1. UMM Utility Scale Wind Turbines 50% of two o University and an outside partner on 1/2 of each turbine 2. UMM 500 kw Biomass Steam Turbine 3. WCROC Small Wind and Solar PV with Battery Intertie System o Will possibly be used as legislative required match for our Green Building Addition o $500,000

4 Basics: Clean Renewable Energy Bonds (CREBs) 1. Application made to the IRS 2. Successful applicants receive bond authority for near zero interest bonds 3. Must be for qualified renewable electrical energy generation 4. Relatively easy application process 5. There is strategy and nuances involved in successful applications 6. There were eighteen main requirements to the CREB application in 2007 (as follows with partial WCROC answers)

5 Clean Renewable Energy Bonds (CREBs) 1. Name of Applicant/Issuer: The Regents of the University of Minnesota Street Address: 600 McNamara Alumni Center 200 Oak Street NE University of Minnesota Minneapolis, MN Status of Issuer: The Applicant/Issuer is a qualified issuer under section 54(j)(4) because it is: (i) A qualified borrower under section that is a governmental body under section 54(j)(3)(B) and is a State, territory, possession of the United States, District of Columbia, Indian tribal government, or any political subdivision of the foregoing, as demonstrated by the attached documents included as Exhibit D, (Supporting documents are not required to be attached for governmental bodies that are general purpose governmental entities with substantial taxing, eminent domain, and police powers such as generally a county, city, municipality, township, or borough.)

6 Clean Renewable Energy Bonds (CREBs) 3. Name of Borrower: The Regents of the University of Minnesota Street Address: 600 McNamara Alumni Center 200 Oak Street NE University of Minnesota Minneapolis, MN Status of Borrower: The Borrower is a qualified borrower under section 54(j)(5) because it is: (ii) a qualified borrower under section 54(j)(5)(B) that is a "governmental body" under section 54(j)(3)(B) and is a State, territory, possession of the United States, District of Columbia, Indian tribal government, or any political subdivision of the foregoing, as demonstrated by the attached documents included as Exhibit D. (Supporting documents are not required to be attached for governmental bodies that are general purpose governmental entities with substantial taxing, eminent domain, and police powers such as generally a county, city, municipality, township, or borough.)

7 Clean Renewable Energy Bonds (CREBs) 5. Name of Project: University of Minnesota West Central Research and Outreach Center - Wind and Solar Photovoltaic System. 6. Detailed Description of Project: (Self-explanatory) 7. Qualified Project: The Project is a qualified project within the meaning of section 54(d)(2)(A) of the Code, because it is a qualified facility (as determined under section 45(d) of the Code without regard to section 45(d)(10) and to any placed in service date) that is: (1) a wind facility using wind to produce electricity; and (4) a geothermal or solar energy facility a facility using solar energy to produce electricity (not including a facility described in section 48(a)(3) of the which is taken into account by the taxpayer for purposes of determining the energy credit under section 48 of the Code).

8 Clean Renewable Energy Bonds (CREBs) 8. Construction Commencement Date and Placed in Service Date: The Borrower expects to begin the construction, installation, and equipping of the Project on or before December 31, The Borrower expects that the Project will be placed into service on or before December 31, Independent Engineer s Certificate: Attached as Exhibit B. 10. Location of Project: The project will be located at the University of Minnesota West Central Research and Outreach Center office / farm.5 miles east of Morris, MN. The address is: University of Minnesota West Central Research and Outreach Center State Hwy 329 Morris, MN 56267

9 Clean Renewable Energy Bonds (CREBs) 11. Individual to contact for more information about the Project: 12. Regulatory Approvals: This renewable electrical energy generation system will not require any FERC or Midwest Independent System Operators approval since it falls below the 1 MW nameplate threshold. A University of Minnesota building permit will be required. No FAA permit will be required as the wind turbine tower will be less than 200 feet tall. No other regulatory permits are required. 13. Plan of Financing: A complete pro form is attached as Exhibit C. This project will be financed with assessed user fees and through energy and interest savings. 14. Refinancing and Reimbursements: Not applicable to the Project

10 Clean Renewable Energy Bonds (CREBs) 15. Dollar Amount of Allocation Request for the Project: To finance the Project, the Applicant hereby requests a CREB allocation in the amount of $499, Prior Allocations for the Project or Related Projects: Not applicable to the Project 17. Other allocation requests for Related Projects to the Project. Included below are descriptions of other projects that are Related Projects (as defined in paragraph 16 above) to the Project for which the applicant or other entities are applying for a CREB volume cap allocation. With respect to an applicant on a Related Project other than the Applicant, set forth below are the names, addresses, contact persons, and telephone numbers for any such applicant. 18. Pooled Financing of Bonds: Not applicable to the Project

11 Clean Renewable Energy Bonds (CREBs) Exhibits -Be certain to include all the necessary exhibits including: 1. Officially authorized signature 2. Detailed Description of Project 3. Pro Forma 4. Certification / Signature from Independent Engineer 5. Consent to Public Disclosure of Application 6. Others?

12 What are the options and opportunities in your communities? Wind energy? Biomass? Solar? Others?

13 Green Buildings Buildings in the US account for ~40% of the nation s energy use. Leadership in Energy and Environmental Design LEED Certified Features: Building Durability / Longevity Solar Photovoltaics Passive Solar / Day lighting Thermal Solar Geothermal / Heat pumps Efficient Lighting CFs & LEDs High Quality Windows & Glazing Water Conservation Recycling Healthy environment

14 WCROC Renewable Energy Research & Education Office Addition

15 UMM Biomass Gasification System

16 UMM Gasifier

17 Wind Turbine: MW Vestas V-82 2.Installed March Produces 5.4 mil kwh / yr 4.Energy first used for research 5.Excess sold via direct line to University of Minnesota, Morris 6.Provides campus with over 50% of electrical energy needs

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20 There is considerable opportunity for Renewable Electrical Energy Systems within our Communities

21 Electrical Energy Use in the United States NASA

22 Renewable energy may be the pot of gold at the end of a rainbow for rural America!

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24 Contact Information: Cory Marquart Renewable Energy Engineer West Central Research & Outreach Center University of Minnesota (320)