1. Funding
This program is being funded from $10 million of un-restricted Authority cash. Loan repayments will be returned to the Authority’s Water Operations Fund.
2.
Borrower Eligibility
Colorado cities, towns, counties, water districts, water and sanitation
districts, metropolitan districts, water conservancy districts, water
conservation districts, irrigation districts and any enterprise created
by the foregoing are eligible to receive a Small Hydropower Loan.
3.
Eligible Projects (5 megawatts or less)
Eligible projects consist of new hydropower facilities (turbines, mechanical
and electrical), pipelines, necessary remodel/reconfiguration of the building
housing the facilities and transmission lines.
4.
Loan Amount and Terms
Loans are limited to a maximum of $2 million per governmental agency.
The interest rate is two percent, and the maximum term is twenty years.
Annual
loan repayments would be structured to begin 12 -18 months from the execution
of the agreement. This should allow a full year of revenues prior to the
first annual loan repayment.
Loan
applications will be considered on a “first in, first served”
basis. Upon approval of a project loan by the Authority’s Board,
the borrower would have six months to execute the loan. If the borrower
fails to execute a loan and/or to meet the conditions imposed by the Board
within this six month period, a new application with full Board review
and approval is required. (The Board’s priority is to obligate funds
for projects that are very close to construction.)
5.
Conditions Precedent for a Small Hydropower Loan
Since there are limited funds available for this program, it is imperative
that the governmental agency is prepared to initiate construction shortly
after executing the loan agreement. The following items should be completed
or expect to be completed prior to executing a loan agreement:
| |
1.
A FERC or BOR exemption or permit is required. |
| |
2.
The governmental agency must have a contract to sell or a plan to
use within its system the energy produced from the hydropower project.
|
| |
3.
All required project funds are in place. |
| |
4.
Final design and costs are available with construction contract imminent
Governmental agency must demonstrate an ability to repay the Small
Hydropower loan (feasibility study or a financial/cash flow statement),
and |
| |
5.
Security for the loan (hydropower revenues or utility system revenues)
is in place. |
6.
Matching Grants for Feasibility Studies, Design and Permitting
Applications for matching grants for feasibility studies, permitting activities
or final design on a potential hydropower project will be accepted through
the end of 2012. These applications would be reviewed by staff and the
grants awarded throughout the year. For 2012 the Authority has budgeted
$150,000 for these matching grants. Matching grants of up to $15,000 will
be available for each governmental agency. At this time, a governmental
agency will be limited to one such matching grant. The governmental agency’s
matching funds may consist of funds expended on a matching basis with
the grant for studies, permitting, final design and other costs associated
with the FERC or Bureau of Reclamation permitting or exemption process.
Funding for matching grants in 2013 and thereafter will be reviewed annually
during the budgeting process by the Authority’s Board of Directors.
|
