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2.6 QuestionsQuestions, including requests for explanations of the meaning or interpretation of provisions ofthis opportunity announcement, must be submitted via email to and received by the due datefor questions set forth on the cover of this opportunity announcement. To help ensure questionsare answered and responses are posted appropriately, please identify “RED” in your subject line.Answers to questions submitted will be posted online for access by all applicants every few daysuntil just before the application due date.Section 3: Review Process3.1 OverviewThe Department will conduct a review of the applications received in response to this opportunityannouncement. The Department will evaluate all applications for completeness. TheDepartment will conduct a competitiveness review of all complete applications and, based onthe competitive review results, certain applications will advance to technical review.Any attempt by an applicant to improperly influence the review process will result in applicationdenial. All comments and questions should be submitted via email toenergy.incentives@oregon.gov.3.2 Completeness Review (pass/fail)The Department staff will review all applications on a pass/fail basis and determine if eachapplication meets the minimum requirements described in section 2.1 of the opportunityannouncement. Applicant’s failure to comply with the instructions or failure to submit a completeapplication may result in the application being found incomplete and rejected. Only thoseapplications that meet the minimum requirements will be considered for further review. If theapplicant is relying on information in attachments, the information in the attachment should bereadily identifiable with explicit references noted on the application form.The Department will consider applications incomplete unless the 500 fee is received with theapplication. If the payment is unable to be processed, the Department will consider theapplication incomplete and will not process the application.Project construction must start within 12 months of award. To demonstrate an estimatedconstruction start date within 12 months of award, an applicant must provide a constructionschedule showing the anticipated start and completion date. It may be helpful to include whatsteps have been undertaken to plan for or begin construction. This may include a list of permitswith dates received or other evidence indicating that the project will begin construction within12 months of the award.Oregon Department of EnergyOpportunity Announcement No. 19-001March 12, 20198

If the Department finds that the application is complete, the Department will notify the applicantthat the application will move into the competitive review process. The Department will notprocess incomplete applications, and will provide written notification to the applicant. If a systemis submitted on an application that is found incomplete, the project owner may apply in a futureopportunity announcement, if the project would otherwise be eligible.3.3 Competitive Review (scored)Each member of the Department’s review committee will review and score all completeapplications based on the criteria listed below. Renewable energy production systems with anameplate capacity of 300 kWAC or less will be scored separately from the renewable energyproduction systems with a nameplate capacity of greater than 300 kW AC. All systems must meetthe requirements listed in OAR 330-200-0000 through 330-200-0150.Competitive Review Criteria:PointsFeasibility of the system: Points will be awarded by examining a number of factors,25including technological, operational, schedule, and resource feasibility. Reviewers will alsoaward points if synergies exist between the system and applicant’s business. Note: Thereshould be adequate and appropriate data to demonstrate the amount of renewableresource available, including the type, quantity, quality, and seasonality of the resource. Thisinformation should be presented in a clear and orderly fashion to demonstrate that theproject is feasible.Net energy generated per grant amount requested: Net generation occurs when, over the20course of the relevant period, the system generates more electrical power than is requiredto run the system. Higher net generation yields are more desirable.Strength of the financial plan: Financial statements will form the basis for points in this20area. In the application, include the proposed balance sheet at system commissioning alongwith the estimated balance sheet, cash flow statement, and income statement for five years.Financial viability will be determined by evaluating the total estimated cost, the financingstructure and projected cash flow and profitability.Location of the system: Points will be awarded for systems that will be sited in low-density15areas in the eastern part of the state and those with high unemployment rates. Thisrecognizes the importance of energy incentives in stimulating the economy. The Departmentwill use current data from the Oregon Employment Department and the U.S. Census Bureauin calculating these points.Technological/resource diversity: Points will be awarded by comparing all proposals10received during an opportunity period. This will weigh the proposed technology andresources to be used against other proposals, with the goal to diversify the types of systemsreceiving grants.Number of jobs created and sustained by the system per grant amount requested: Points10will be awarded based on the number of full-time equivalent positions created andsustained due to the system. Applicants should provide the number of hours, whichDepartment staff will convert to full-time equivalent positions for the purpose of rating theapplications. This takes into consideration only the jobs directly associated with theOregon Department of EnergyOpportunity Announcement No. 19-001March 12, 20199

construction, operation, and maintenance of the system. Operations and maintenancepositions should be clearly identified, even if the positions currently exist and are beingreassigned to maintain the new system.Provides Electricity Resiliency: Points will be awarded for renewable systems that arecapable of supplying electricity when the larger grid is unavailable due to extreme weatheror other emergency situations. Systems must be designed with resiliency in mind andtherefore will have automated controls that allow the system to operate completely isolatedfrom the grid. The renewable system may be combined with energy storage such asbatteries. Higher points will be awarded if the system is either available directly to thepublic or available through public emergency responders.Demonstrates Community Benefits: Points will be awarded for systems that are structuredto provide community ownership opportunities or demonstrate creative communityfinancing models or convey other benefits to members of the local community. Otherbenefits may include: benefits to the local community such as providing energy for acommunity facility or the project provides revenues back to the community.Total:Applications will be ranked based on the competitive review scores.105115The Department will use the applicant’s financial data and other information from the applicationto determine the internal rate of return (IRR) of the system. On the application form, theapplicant will provide annual expenses (include maintenance and operations), revenue, andresulting cash flows for the first ten years of system operation. The Department will use thisinformation in its calculations. Systems with higher IRR percentages are more desirable and theIRR will be considered in the evaluation of the strength of the financial plan and may beconsidered in the evaluation of the feasibility of the system.The Department will notify all applicants of the competitive review’s outcome in writing.Only those applications selected in the competitive review, based on their score, will beconsidered for technical review. Applicants selected for technical review will be required to paya technical review fee prior to the review. The fee amount is equal to the qualifying system costmultiplied by 1.25 percent (0.0125) up to 8,929. If the applicant does not submit the requiredpayment to the Department within 21 calendar days of notification of the advancement totechnical review, the Department may deny the application.The Department may place projects that do not advance to the technical review on asupplemental list, pending the technical reviews of selected projects. The Department will retainthe supplemental list until the performance agreements for selected projects are signed. Projectson the supplemental list will not be retained for competition in future opportunityannouncements.Projects not selected to move into technical review may be eligible to apply again in response toa future opportunity announcement. The project must not have begun installation orconstruction, and a new application and fee will be required. The Department will not apply feesOregon Department of EnergyOpportunity Announcement No. 19-001March 12, 201910

or applications submitted in response to a previous opportunity announcement to futureopportunity announcements.3.4 Technical ReviewThe Department will review the information provided in the application against industrystandards to determine whether the system is technically feasible, should operate in accordancewith the representations made by the applicant, and meets standards described in OAR 330-2000000 through OAR 330-200-0150.If an application does not include all the information needed to complete the technical review,the Department may notify the applicant in writing, requesting additional information. If theDepartment does not receive the requested information within 30 calendar days, theDepartment may deny the application.The Department will notify the applicant in writing if the application fails technical review andcauses the Department to deny the application. If the technical review determines thatinformation submitted by the applicant during the competitive process was inaccurate, theDepartment may deny the application.If an application fails the technical review, the director may choose another application from thelist of ranked applications on the supplemental list. That application will be required to pay thetechnical review fee prior to the review.3.5 Offer of Performance AgreementAfter satisfying the technical review, applications may be offered a performance agreement. Thegrant amount offered may be less than requested. The Department will communicate to thesystem owner the conditions surrounding the offer of a performance agreement. Applicants willhave 30 calendar days to respond in writing to the offer.The performance agreement will include the terms provided in OAR 330-200-0080, and mayinclude additional terms, such as reporting frequency. In accordance with OAR 330-200-0080 (6),failure to agree to the terms of a performance agreement will result in the Department rejectingthe grant application.3.6 NotificationOnce the Department has confirmed allocation of the available grants, the remaining applicantswill be notified of the outcome. After that time, the Department will no longer retain thesupplemental list of applicants for that opportunity announcement or for any future opportunityannouncements.Section 4: Grant Process and PaymentOregon Department of EnergyOpportunity Announcement No. 19-001March 12, 201911

4.1 ReportingOnce a performance agreement is executed, the grantee must submit quarterly reports to theDepartment on the status of the construction or installation of the system. The quarterlyreporting requirement begins the first quarter following the execution of the agreement andeach quarter thereafter until the system is complete. Reports are due by the 15th day of themonth immediately following the end of the quarter. When the system is complete andoperational, the grantee must submit a final report to the Department prior to disbursement ofthe grant. A grantee must also submit operational reports every year for five (5) years after thesystem is complete. The performance agreement will provide details about these reports.To demonstrate beginning construction or installation, the grantee must submit the requiredreports with documents demonstrating system milestones, as specified in the performanceagreement. See attached Exhibit A for examples of what constitutes as beginning construction.4.2 AmendmentsRenewable energy production system applications and performance agreements may beamended only as provided under OAR 330-200-0090. The grantee must submit a writtenamendment request to the director to amend a performance agreement or change any aspect ofthe renewable energy production system. Amendment requests must include payment of a 300fee. The Department may accept non-substantive changes, such as change of responsible partyinformation, without payment of the fee. See OAR 330-200-0090 for further information.Prior to approval of an amendment, the grantee must demonstrate that the system, with theproposed change, would continue to be technically feasible, would operate as represented, andwould remain in operation for at least five (5) years. The grantee has the responsibility to providecomplete technical documentation that will support a case for the proposed amendment. TheDepartment may deny amendments submitted without such justification.The Department will evaluate amendments to determine if the change would have affected theoutcome of the competitive review, which may result in denial of the amendment request.4.3 Disbursing Grant AwardWhen the system is complete, operational, and meets all conditions of the performanceagreement, a grantee should submit the final report. Once the Department has received andapproved the final report, the Department will disburse the grant as specified in the performanceagreement. In the final report, the applicant must: Demonstrate that the total project costs for purchase and installation or construction ofthe energy conservation project were paid in full. Document total project cost by:o Having a certified public accountant attest to the total project cost if the projectcost is 50,000 or more. The certified public accountant cannot be the projectowner or permanently employed by the project owner; orOregon Department of EnergyOpportunity Announcement No. 19-001March 12, 201912

o If the total project cost is less than 50,000, the applicant must submit copies ofitemized invoices and/or receipts for the project. All invoices and receipts forproof of payment must be marked “paid” and may include canceled checks, creditcard statements, binding contracts, and agreements. Include information regarding incentives applied for or received in connection with theproject.The amount of any potential RED grant will be reduced if, in combination with other governmentincentives or grants, the amount exceeds 75 percent of the total system cost or in combinationwith all other incentives exceeds 100 percent of total system

Section 1: Purpose and General Information 1.1 Introduction ORS 469B.250 through 469B.265 authorize the Oregon Department of Energy (Department) to provide grants for renewable energy production systems. The statutes allow the Department to establish standards and criteria to allocate the available grant funds.