The Bowersock Mills and Power Company
Proposed North Plant Expansion
Department of Energy Grant Rationale for Letter of Support
Grant Specifics:
Sponsor - U.S. Department of Energy, Golden Field Office
Grant – Recovery Act: Hydroelectric Facility Modernization
Funding Opportunity Announcement Number (FOA #): DE –FOA-0000120
CFDA #: 81.087
Application Due Date: 8/20/2009
“The DOE is soliciting applications from industry members... that propose to develop, deploy, and test hydropower projects that would modernize the existing hydropower infrastructure in the U.S. and increase both the quantity and value of hydropower generation, including environmental performance.”
Program Focus/Merit Criteria:
· To increase and maximize system generation of conventional hydropower at existing non-Federal hydroelectric facilities
o Increases in generation of at least 5%, larger increases are preferred.
· Projects that can be developed without significant modifications to dams
· Improved environmental performance
· Potential for increased power generation per federal dollar spent will be an important criterion
· Regional diversity of projects - important policy factor
· Level of cost share – important policy factor
· Applications are encouraged for projects that can be developed with a minimum of regulatory delay.
· Strong preference for apps that will produce within 2 years of project initiations
· Other Key Factors:
o Preference for Applications that promote and enhance the objectives of the American Recovery and Reinvestment Act of 2009, P.L. 111-5, especially job creation and retention, especially those with small and local businesses, and/or preservation and economic recovery in an expeditious manner.
Award # & Size – Upgrades at Small Projects:
· Available funding: $7 M ($32 M including large project awards)
· Expected # of Awards: 1 – 5
· Required Non-Federal Cost Share: 50%
· Estimated Range Per Award (DOE Share): $2- 7M
Proposed BMPC Expansion
· BMPC North – 5MW New Powerhouse located on North Bank of Kansas River at Bowersock Dam in Lawrence, Kansas
· BMPC is certified as a “Low-Impact” Hydropower Plant by the Low Impact Hydropower Institute (LIHI). BMPC was the 15th hydropower plant in the nation to earn this certification. Today, only 40 hydropower plants have been certified nationwide. The BMPC expansion has been endorsed by the Sierra Club, as well as Friends of the Kaw, the key regional river protection NGO. The expanded BMPC operation would continue to operate according to LIHI standards.
· The Bowersock Dam is an existing dam necessary for the protection of the City of Lawrence water supply as well as for other stakeholders including the Kansas Department of Transportation and the University of Kansas. The proposed project would make no modifications to the dam proper, but would be placed at the site of the existing spillway.
· Projected percentage increase in energy generation: 213%
· Existing generation: 2.35 MW, Proposed Additional Generation: 5MW, Total Generation: 7.35 MW
· Projected Project Cost: $14M
· BMPC Grant Request: $3.9M
Why BMPC is highly eligible to receive this DOE Grant
· 214% increase in energy generation from 2.35 MW to 7.35 MW – far in excess of 5% minimum
· Project will be developed without any modifications to the existing dam which is critical to water supply.
· Improved environmental performance – existing BMPC project is LIHI-certified. Project site is environmentally-appropriate, and endorsed by key environmental NGOs.
· 1st year of plant operation – total relative federal cost: $.18/kWh
· 1st 20 years of plant operation – total relative federal cost: $.009/kWh
· Regional Diversity – BMPC is the only operational hydroelectric power plant in Kansas. There are a limited number of hydroelectric power plants in the central Midwest.
· 27.8% cost share - well below 50% maximum.
· Minimum of regulatory delay. BMPC anticipates a streamlined FERC licensure process. Early in this planning stages, BMPC undertook discussions regarding the proposed project with key federal, state, county, and local agencies as well as regional NGOs and other stakeholders. To date, no concerns or objections to the proposed project have been expressed. BMPC has been granted a Preliminary Permit for the project by FERC, and anticipates submitting the final license request in November, 2009. Based on FERC timelines, licensure could be granted as early as September, 2010.
· If all established time goals are met, BMPC North Expansion project could be online and producing as early as November, 2011.
· BMPC is a small, local, historic, and woman-owned business.
· Plant construction will bring significant jobs to the community and region.
· Long-term addition of 2 full-time jobs
· The plant expansion will make the existing Bowersock operation more economically sustainable, thereby preserving existing jobs.
The letter of support should sent electronically to me at shn@bowersockpower.com or if you would prefer, via US Mail to Sarah Hill-Nelson, BMPC, P.O. Box 66, Lawrence, Kansas 66044
The letter should NOT be sent directly to the DOE as it must be included in the application package.
As written, the letter should be directed as follows:
Department of Energy
Golden Field Office
RE: Recovery Act: Hydroelectric Facility Modernization
FOA #: DE-FOA-0000120
CFDA Number: 81.087
Bowersock should be identified as
The Bowersock Mills and Power Company
Existing FERC License Exemption # - P-2644
Project Name: The Bowersock Mills and Power Company Kansas River Project Expansion
Expansion Project FERC Preliminary Permit Docket #: Docket P-13526-000
The grant must be submitted on August 20th, and it has to be submitted in a very specific manner via the automated FedConnect system. In order to put all this together, it would be wonderful to have the letter by August 17th, but as long as we have it by the 19th we should be okay.
Again thank you for your support for Bowersock. We are grateful for the opportunity and hope we’ll be able to bring additional clean, renewable energy online in Kansas.
Please call me with any questions or suggestions.
Sarah
785-766-0884