Title XVII Solicitation for Advanced Fossil

ATTACHMENT A – PART I SUBMISSION

The Application is divided into a Part I submission and a Part II submission. Part I of the Application
provides DOE with a description of the Project, technical information, expected environmental effects,
background information on management, financing strategy, and progress to date of critical path
schedules. This information will be used as a basis for determining the overall eligibility of the Project
and the Project’s readiness to proceed. DOE will evaluate each Part I submission based upon the factors
summarized herein, however, DOE may require that Applicants provide additional certifications or
supporting documentation as part of the Project evaluation process. If an Applicant is invited to submit a
Part II submission, to the extent that there are any material deviations from the information provided to
DOE in the Part I submission, the Applicant must update the information.
The information requested in Part I Section A is to be entered directly into the text fields provided in the
Application Portal. The information requested in Part I Sections B through H is to be provided on PDF or
Excel documents uploaded through the Application Portal. Uploaded documents must indicate clearly
the section and subsection of the Part I requirement to which the information on the documents
pertains.
I. Part I Submission
A. Application Information
1.

Project Information: Enter the Project name, select the applicable technology category
or categories (Advanced Resource Development, Carbon Capture, Low-Carbon Power
Systems, Efficiency Improvement, Other), and enter the Project/generation capacity (in
Megawatts, Gallons per Year, Tons per Year, or Other).

2.

Project Location: Enter the following information regarding one or more Project
locations: address, city, state, zip code.

3.

Project Sponsor(s): Enter the following information for each Project Sponsor with
equity of five percent (5.0%) or more: indicate whether lead sponsor (must have one lead
sponsor), entity name, website address, mailing address, city state, postal code, contact
first name, contact last name, contact title/position, contact phone, and contact email.

4.

Applicant Information: Enter the following information for the Applicant: Applicant
entity name, website address, mailing address, city, state, postal code, DUNS number,
NAICS code, primary contact information including first name, last name, title/position,
phone, and email.

5.

Preliminary Questions: Answer the following questions. If the answer to any of these
questions is “No” include a detailed explanation of the circumstances that cause the
answer to be “No” in the space provided.
a) Do you confirm you have read and understand the Loan Guarantee Solicitation
Announcement from the U.S. Department of Energy Loan Programs Office regarding
Federal Loan Guarantees for Advanced Fossil Energy Projects?

Attachment A – Part I Submission

24

b) Is the Applicant legally authorized to enter into loan guarantee transactions and in
good standing with the U.S. Department of Energy and/or any other federal agency
loan guarantee program?
c) Is the Applicant current on payment of all amounts owed to the federal government?
d) Will the Project be built and operated entirely within the United States or its
territories?
e) Do you confirm that to the best of the Applicant’s knowledge, after making diligent
inquiry, that no Project participant has been charged with or convicted of a
misdemeanor or felony (other than routine traffic violations) or been involved in any
securities litigation?
6.

Summary of Loan Guarantee Request: Enter the following information regarding the
Applicant’s loan guarantee request: requested period of guarantee (years), total Project
Costs, proposed guarantee amount, debt, and equity. The sum of the amount entered for
debt and the amount entered for equity should equal the amount entered for total Project
Costs. The amount entered for the proposed guarantee amount should not be more than
the amount entered for debt. On the basis of the above entered amounts, calculations will
be made to determine the following amounts: debt to equity ratio, proposed guarantee
amount to debt percentage, and proposed guarantee amount to total Project Costs
percentage.

B. Option to Restrict Disclosure and Use of Certain Data
Section VII.D of the Solicitation sets forth the steps an Applicant must take in order to restrict
the use and disclosure of certain data submitted in the Application. In order to restrict the use
and disclosure of certain data submitted in Part I of the Application the Applicant must upload
a separate page containing the legend set forth in Section VII.D.1 of the Solicitation. If the
Applicant does not want to restrict the use and disclosure of any data submitted in the
Application the Applicant must upload a separate page containing the following statement:
“Applicant does not identify any data the use and disclosure of which is to be restricted.”
C. Organization (Corporate and Personnel)
1.

Organizational Chart: Provide a current corporate organizational chart showing the
Applicant’s relationship to any subsidiaries, affiliates, parent organizations, or joint
ventures associated with the Project. Show the Applicant’s relationship to each Principal.
For the purpose of this Solicitation, a “Principal” is any person who owns or will own
five or more percent of the Project.

2.

Key Staff: List the full names (including middle name or initial) of key staff to be
involved with the Project.

3.

Evidence of Authority: Submit evidence that the signatory of the Application has
authority to bind the Project Sponsor to the commitments and representations made in the
Application and attests as to the accuracy of the information provided in the Application
process.

Attachment A – Part I Submission

25

D. Project Description
1.

Executive Summary: Provide a description of the nature and scope of the Project,
including the technology, site, environmental resources affected, purpose, size, capacity,
design features, key metrics, and key milestones. Describe the commercial feasibility of
the technology(ies) and how you intend to employ such technology(ies) in the Project and
how you assure, to the extent possible, the further commercial availability of the
technology(ies) in the United States. Include target dates for:
a) financial close of the Loan Guarantee Agreement;
b) commencement of site preparation and construction;
c) commercial operation; and
d) marketing the output.

2.

Project Eligibility: Provide a detailed explanation of how and to what extent the Project
will qualify as an Eligible Project. DOE will base its determination that the Project is an
Eligible Project on the information the Applicant furnishes in its Part I submission.
Applicants are encouraged to be thorough in their explanations of a Project’s
qualification as an Eligible Project, including a discussion of the threshold determinations
set forth in Section 609.7(a) of the Final Regulations, all of the eligibility requirements of
Title XVII of the Final Regulations, and all of the eligibility requirements listed in
Section II of the Solicitation, “Eligibility Information”.

3.

Project Sponsors’ and Principals’ Capabilities: Describe each Project Sponsor’s and
each Principal’s capabilities, financial strengths, investment in the venture to date and as
anticipated during the construction and operation phases of the venture (i.e., continuing
financial support) and proposed equity investment in the Project, as well as the Project’s
strategic significance to each Project Sponsor and Principal.

4.

Prior Experience: Summarize the prior experience of each venture participant as it
relates to carrying out undertakings similar to the one being proposed. Include a detailed
description of current and previous experience in the fossil sector. Applicants must, at a
minimum, describe (a) examples of at least two projects in the fossil energy sector similar
in nature and scope (whether innovative or not) to the Project being proposed that have
been completed (developed, financed, and managed construction) by the Applicant’s
organization or its Principals, and (b) examples of at least two projects in the fossil
energy sector for which the Applicant’s organization or Principals raised equity and
secured debt for project financing, and (c) examples of at least two projects in the fossil
energy sector for which the Applicant’s organization was responsible for managing the
operations and maintenance of a project for a minimum of two years. Each project
example must be a project for which construction has been completed. Applicants that
are not able to include examples of two projects in their description of current and
previous experience in the fossil sector should provide a detailed description of the facts
that they believe are sufficient to demonstrate to DOE that they have the expertise that
would be evidenced in current or previous experience in the fossil sector by examples of
two projects. DOE will determine, in its sole and final judgment, whether the experience
described shows sufficient expertise.

Attachment A – Part I Submission

26

5.

Project Costs: Provide the estimated total Project Costs, as defined in Sections 609.2
and 609.12 of the Final Regulations, and a summary detailing key assumptions and the
methodology used to calculate the Project Costs. Include all eligible costs that you have
paid and expect to pay and that are directly related to the Project. Also include costs for
escalation and contingencies in this calculation. Distinguish between eligible and
ineligible Project Costs as set forth in Section 609.12 of the Final Regulations.

6.

Letters of Interest: Provide a letter of interest for all parties named in Section I.A.

E. Technical Information
Provide a top-level technical Project description, including the design, engineering,
construction, and operations and maintenance phases of the Project, including:
1.

Description of Project Design: A description of the basic processes involved in the
Project design.

2.

Description of New or Significantly Improved Technology: A detailed description of
the New or Significantly Improved Technology to be used in the Project, and a
description of how and why the technology is new or significantly improved compared to
technology already in general use in the commercial marketplace in the United States.

3.

Sketches: Conceptual level sketches and details outlining general plant layout, process
and materials flows, and operating parameters and throughputs for key processes.

4.

Critical Path Agreements Status: The status of critical path contracts and agreements,
such as a Front-end engineering agreement, technology license and teaming agreements,
Engineering, Procurement and Construction (“EPC”) contract, long-lead contracts,
feedstock agreements, and plant off-take or sales agreements.

5.

Planning Documents: Key planning documents for the Project such as the construction
plan, operation and maintenance plan, waste disposal plan, and preliminary risk
management plan.

6.

Acquisition Strategies:
acquisition strategies.

7.

Attachment C: A completed copy of Attachment C, Summary Lifecycle GHG
Emissions Data Worksheet.

Raw material, equipment, and component supply chain

F. Legal and Regulatory Information
1.

Timelines for Regulatory Approval:
regulatory approvals.

Provide timelines for receipt of all required

2.

Status of Required Permits, etc.: Provide the status of any required federal, state, or
local environmental permits, approvals, or reviews.

3.

Pending Investigations: Provide a summary of any pending or threatened (in writing)
action, suit, proceeding, or investigation by a governmental authority, of any kind,
including any action or proceeding by or before any governmental authority, that relates
Attachment A – Part I Submission

27

to the Project or to the Applicant, any Project Sponsor, any Principal, or the anticipated
Borrower, and the status of any appeals.
G. Business and Financial Plans
1.

Business Plan: Provide a description of the following elements of the Applicant’s
business plan for the Project:
a) Market analysis;
b) Feedstock (if applicable);
c) Off-take or sales agreements; and
d) Estimate of the number of construction jobs and permanent jobs expected to be
created or retained in the United States if the Project were to proceed as proposed in
the Application.

2.

Financial Plan: Provide a description of the following elements of the Applicant’s
proposed financial plan for the Project:
a) The term sheet for the Guaranteed Obligation;
b) The amount of expected equity investments (identify participants and level of
participation, if applicable);
c) The preliminary funding plan for the Guaranteed Obligation, including the total
amount for (i) working capital financing, (ii) medium-term financing for machinery
and equipment and (iii) longer-term financing for the site and facility;
d) The timing of expected equity contributions and debt funding;
e) The timing of repayment of expected debt funding;
f) Whether the Project will benefit directly or indirectly from certain other forms of
federal support, such as grants or other loan guarantees from federal agencies or
entities, including DOE, federal agencies or entities as a customer or off-taker of the
Project’s products or services, or other federal contracts, including acquisitions,
leases and other arrangements, that support the Project; and
g) Other non-federal governmental (including state) incentives or other assistance on
which the Project relies, including grants, tax credits and other loan guarantees to
support the financing, construction and operation of the Project. Indicate whether
any such incentives or assistance are subject to clawback and the circumstances
under which a clawback could occur.

H. Application Certifications
1.

Lobbying, Debarment, and Related Certifications and Assurances: In submitting an
Application for a loan guarantee under Title XVII, Applicants must provide certain
certifications and assurances contained in the form entitled “Certifications for Use with
Applications for Department of Energy Loan Guarantees under title XVII of the Energy
Attachment A – Part I Submission

28

Policy Act of 2005” which form may be downloaded from the Program Website:
http://energy.gov/sites/prod/files/Certifications%20for%20Use%20with%20Doe%20Loa
n%20Guarantees.pdf
2.

Applicant Validation Statement: Provide a written statement that, based on the Project
information provided by the Applicant, the Applicant attests that there is a reasonable
prospect that the guaranteed portion of the Guaranteed Obligation and any other Project
debt will be repaid on time and in full (including interest) from Project cash flow
according to the terms proposed in the Application.

3.

Letter of Commitment: For an Application to be considered under this Solicitation, Part
I must include a letter of commitment signed by an authorized representative of the
Applicant in the form set forth on the final page of Attachment A – Part I Submission.

4.

Penalty of Perjury Statement: The following certification must be included with each
Application:
“The undersigned certifies that the data and information submitted and the
representations made in this Application and any attachments to this Application are true
and correct, to the best of the Applicant’s knowledge and belief after due diligence, and
the Applicant has not omitted any material facts. The undersigned further certifies to
having full authority to bind the Applicant.
_________________________________
Applicant (Organization Name)
_________________________________
Name of Applicant’s Authorized Officer
(will fulfill on-line certification)
_________________________________
Signature of Authorized Officer
(for paper copy only)
_________________________________
Title of Authorized Officer
Applicant (Organization Name)
_________________________________
Date”

Attachment A – Part I Submission

29

[SAMPLE LETTER OF COMMITMENT]

[DATE]

Executive Director
U.S. Department of Energy, Loan Programs Office
Attn: Advanced Fossil Energy Applications
1000 Independence Avenue, SW
Washington, DC 20585
Dear Director:
This letter confirms our intent to seek a loan guarantee pursuant to Solicitation No. DE-SOL-0006303,
dated December 12, 2013 (the “Solicitation”). We have met all mandatory requirements as specified in
the Solicitation including all attachments. Our Part I submission Application Fee was wired as per your
instructions on xx/xx/201_.
We intend to submit our complete Part II submission on or before the due date for the [specify round by
number and/or Part II submission due date] round of Part II reviews as set forth in Section IV.A of the
Solicitation. Based on the Application process described in the Solicitation, we are prepared to close the
financing on or about xx/xx/201_.
If we decide to withdraw from consideration for a loan guarantee at any time, we will notify DOE in
writing of that decision as soon as possible.

Sincerely,
_______________________________
Signature of Authorized Officer
[Name]

Attachment A – Part I Submission

30

ATTACHMENT A – PART II SUBMISSION

Subject to the due dates set forth in Section V.A of the Solicitation, the Part II submission may be filed at any
time after DOE invites an Applicant to submit its Part II submission. The Part II submission consists of the items
summarized herein and in Attachment B as well as other information that may be requested to facilitate DOE’s
continued due diligence review. Projects eliminated by any of the requirements set forth in Part II of this
Attachment A will not receive any further consideration.
At any time after delivery of a Part II submission, to the extent that there are any material deviations from the
information provided to DOE in such Part II submission, the Applicant must promptly notify DOE no later than
three (3) business days after becoming aware of any such change by requesting approval from DOE to update
their Part II submission via the Application Portal. Upon DOE notice to Applicant of approval to re-open
Applicant’s Application, Applicant must provide DOE with updated information via the Application Portal no
later than ten (10) business days after receiving such notice from DOE.
Responses are to be provided on PDF or Excel documents uploaded through the Application Portal. Uploaded
documents must indicate clearly the section and subsection of the Part II requirement to which the
information on the documents pertains.
I.

Part II Submission
A. Option to Restrict Disclosure and Use of Certain Data
Section VII.D of the Solicitation sets forth the steps an Applicant must take in order to restrict the use
and disclosure of certain data submitted in the Application. In order to restrict the use and disclosure of
certain data submitted in Part II of the Application the Applicant must upload a separate page
containing the legend set forth in Section VII.D.1 of the Solicitation. If the Applicant does not want to
restrict the use and disclosure of any data submitted in the Application the Applicant must upload a
separate page containing the following statement: “Applicant does not identify any data the use and
disclosure of which is to be restricted.”
B. Updates, Changes, and Additions to Part I Submission
Update the information in the Part I submission to the extent and information in the Part I submission
has changed from the information previously submitted. Provide a detailed description of all material
amendments, modifications, and additions to the information provided in Part I of the Application,
including any changes in the Project’s financing structure or other terms, the rationale for such changes
and the expected impact on the Project. Provide any and all updated audited financial statements since
the submission of Part I of the Applicant and Project Sponsors (including new parties joining the
Project since the Part I submission).
C. Submission Index
Provide an index of all of the requirements contained in this Solicitation and in Section 609.6 of the
Final Regulations and where in your Application submissions, including Parts I and II, these
requirements are addressed.
D. Project Description
1.

Detailed Total Cost: Provide a detailed estimate of Project Costs in accordance with generally
accepted accounting principles and practices. Include a breakdown by cost category, year of
Attachment A – Part II Submission

31

expenditure and basis for amounts, and include a description of the methodology and key
assumptions used to make each estimate. Also include costs for escalation and contingencies, and
indicate whether each cost is firm or subject to change. Distinguish between eligible and
ineligible Project Costs as set forth in Section 609.12 of the Final Regulations.
2.

State and Local Support: Describe the status of potential and actual forms, amounts, and
conditions of state and local support for the Project. Provide timelines for such assistance.

3.

Project Location: Identify the proposed location in the United States and the rationale for the
site location. An Applicant proposing more than one location for a Project must set forth in its
Application its justification for siting the Project in more than one domestic location.

4.

Effect on Anthropogenic Emissions: Describe how and to what measurable extent the Project
avoids, reduces, or sequesters anthropogenic emissions of greenhouse gases, including how to
measure and verify those benefits.

E. Technical Information
1.

Key Contracts and Agreements: Provide a top-level description, schedule, current status, and
drafts or executed copies of all critical path contracts and agreements relevant to the investment,
design, engineering, financing, construction, startup, commissioning, shakedown, operation, and
maintenance of the Project, including:
a) EPC contract(s);
b) Long-term contracts for materials, components and equipment to be used in the Project;
c) Any leases, operating, or maintenance contracts; and
d) Any additional relevant agreements or commitments.
If drafts or executed copies of any of the foregoing contracts and agreements are unavailable,
provide a detailed description of such contracts and agreements, including all key terms and
counterparties, and indicate when copies of such contracts and agreements will be available.

2.

Engineering and Construction Plans: A detailed description of the engineering and design
contractor(s), EPC contractor(s), equipment supplier(s), and construction schedules for the
Project.
a) For each engineering and design contractor, EPC contractor and equipment supplier to be
involved in the Project, describe their major activities as linked to specified cost milestones
and performance guarantees, as well as performance guarantees, performance bonds,
liquidated damages provisions, and equipment warranties to be provided.
b) Describe the following:
(i) The extent to which all required contractors are engaged; and
(ii) The extent to which pre-construction design has been completed.
c) Describe each contractor or supplier’s experience and qualifications as related to the Project.

Attachment A – Part II Submission

32

3.

Key Site Components: Describe the key site components of the Project and risks associated
with their availability (e.g., water, electricity, gas, or other utilities). Describe site access (roads,
highway, and rail) including rights-of-way, easements, and logistical considerations.

4.

Operation Costs: Provide an estimate of operation costs on an annual basis.

5.

Project Plan: Provide a comprehensive Project plan that will guide design, engineering, and
construction of the Project, including a description of:
a) Prior successful implementation of similar project plans for projects of this scale by the
Applicant or any Project Sponsor (Applicants that are not able to include examples of
successful implementation of similar project plans for projects of this scale should provide a
detailed description of the facts that they believe are sufficient to demonstrate to DOE that
they have the expertise that would be evidenced in examples of successful implementation of
similar project plans for projects of this scale. DOE will determine, in its sole and final
judgment, whether the experience described shows sufficient expertise);
b) Each step of the proposed process;
c) Fully sourced or cited material and energy balance, including system simulation for
processes, using industry standard software;
d) The process for selecting an EPC firm, if applicable, or the internal resources used to serve
this function;
e) Equipment requirements;
f) Rights or licenses to use processes proposed;
g) An integrated schedule or Project work plan that encompasses time periods for design,
procurement (including long-lead procurements), construction (including mobilization,
testing and start-up), and commissioning. The Project shall identify any Project dependencies
such as the timing of land-use agreements, environmental permits, or licenses, or physical
improvements such as utility tie-ins.
h) Minimum design specifications in which process flow diagrams are coupled to preliminary
cost estimates.
i)

Project management tools, including Gantt charts, resource-based scheduling or other
methods to assess and track progress;

j)

Staffing plans, including identification of costs and resources to design, engineer, construct,
and operate the Project;

k) Project risks and mitigation strategies, including risk related to scale-up, construction,
performance, etc. and the potential Project impact and mitigation of such risks; and
l)

Contingency plans to address cost overruns and schedule slippage.

Attachment A – Part II Submission

33

6.

Operating and Maintenance Plans: Provide the following:
a) The plant operating plan, proposed providers, expected staffing requirements, anticipated
parts inventory, major maintenance schedules, estimated annual downtime and any
performance guarantees and related liquidated damages provisions;
b) A description of the plans for commissioning and initial operations, taking into account the
construction schedule, the establishment of material supply chains, the hiring, and training of
management and operating personnel, logistics, potential bottlenecks, and delays, financing
for contingencies and working capital;
c) A description of any plans for expanding capacity over initial operations and the Applicant or
the Project Sponsor’s experience with comparable ramp-ups; and
d) A description of the operations and maintenance plans for the Project, including acquisition
of critical spares, inventory sources, operations and maintenance procedures, and associated
risks.

7.

Engineer’s Report: Provide an independent engineer’s report that includes a review, evaluation,
analysis, and recommendations in the following areas:
a) base technology,
b) Project feasibility;
c) engineering and design approach;
d) integrated Project schedule, including the schedule for completion;
e) cost estimates and technical input to the financial model;
f) contractual requirements and arrangements;
g) proposed supply chain;
h) Project risks, including mitigation activities and milestones;
i)

direct labor requirements during construction and operation;

j)

siting and permitting;

k) testing and commissioning;
l)

operation and maintenance; and

m) decommissioning plan and costs.
8.

Decommissioning Plan: Provide a detailed description of the Project decommissioning,
deconstruction, and disposal plans (including any hazardous waste disposal plans), including
anticipated costs and arrangements that have been made to ensure that funding will be available
as necessary.

Attachment A – Part II Submission

34

F. Legal and Regulatory Information
1.

Legal Opinions/Material Reports: Provide a copy of all applicable legal opinions, and other
material reports, analyses and reviews concerning the Project.

2.

Permits and Approvals: Provide a complete list of federal, state, and local permits, licenses,
and approvals required to site, construct, implement, and operate the Project, including
environmental authorizations or reviews necessary to commence construction. For permits and
approvals already received, provide the filing and approval dates and parties involved. For all
remaining required permits and approvals, provide documentation validating the filing date and
the expected date(s) for obtaining them and describe all additional actions required to obtain such
permits and approvals. Explain whether governmental entities (other than DOE) are required to
approve the activities of the Applicant contemplated by this Solicitation or described in the
Application.

3.

Background and Legal Structure:
a) Describe the organizational history, ownership chain, and legal structure (e.g., corporation,
partnership, or LLC) of the Applicant and each Project Sponsor.
b) Include copies of the statutory authorities under which the Applicant and each Project
Sponsor were created and copies of the good standing certificates for each such entity.
c) Provide a current organizational chart showing the Applicant’s relationship to each Project
Sponsor, the venture and to any subsidiaries or affiliates. Advise if there are any proposed
changes to the current organizational structure of the Applicant.
d) Describe whether the Project will be owned by a subsidiary of the Applicant or directly by
the Applicant.

4.

Legal Authority: Describe the legal authority of the Applicant to carry out the Project activities.
Provide supporting documentation.

5.

Litigation and/or Conflicts: Disclose any current, threatened (in writing), or pending litigation
involving the Applicant, a Principal, or, to the Applicant’s knowledge, any other relevant party,
related to permitting, public involvement, environmental issues, construction defects, fraud,
securities fraud, conflict of interest, failure to perform under a local, state or federal contract, or
other charges which may reflect on the Applicant’s, Principal’s, or any Project Sponsor’s
reputation, financial position or ability to complete the Project.

6.

Potential Environmental Impacts: Submit a report containing the status of all state and local
environmental reviews and an analysis of the potential environmental impacts and risks of the
Project in sufficient detail to enable DOE to assess the significance of the environmental impacts
and risks and to determine the level of environmental review that will be required. See
Attachment B for guidance regarding required environmental information for the NEPA review
process.

G. Business Plan
Provide a business plan that demonstrates the Applicant’s expertise, financial strength, and management
capability to undertake and operate the Project as proposed.
1.

Output: Provide a detailed description of the Project’s output.
Attachment A – Part II Submission

35

2.

Applicant’s Capability: Describe in detail the capabilities and experience of the Applicant and
each Project Sponsor, Principal, contractor, and every other counterparty that the Applicant
believes will enable the Project to be successful.

3.

Market Analysis:
a) Include an analysis of the current and projected market for the Project’s output. Discuss the
prevailing economic and demographic trends in the target market, both on a macroeconomic
basis and for the Project’s output. Identify the market’s dependency on tax benefits or other
government policy. Provide a justification for revenue projections (price and volume) and
costs. Describe the Project’s projected customer base and suppliers.
b) Describe the Applicant’s current and potential competitors for the Project’s output.
c) Provide a detailed description of any competitive advantages.

4.

Operating and Market-Related Risks and Mitigation Strategies: Provide a detailed analysis
of the operating and market-related risks associated with the Project (e.g., market factors, price
volatility, etc.) and mitigation strategies to be employed (e.g., sales contracts and reserves).

5.

Management Plan:
a) Provide a staffing chart indicating the individuals (including position and qualifications)
proposed to operate the Project. Provide a description of the management plan of operations
to be employed in carrying out the Project, and information concerning the management
experience of each officer or key person associated with the Project; and
b) Describe the role of management in the operation of the Applicant’s other businesses, if any.

6.

Supply and Sales Arrangements:
a) Provide a detailed analysis of the market for the Project’s feedstock and output;
b) Provide a detailed description of the Project’s plans for ensuring an adequate supply of
materials, equipment, and components as needed for successful operation. Provide drafts or
executed copies of all material supply contracts for the Project;
c) Provide the Project’s forecast for sales capacity and feedstock (availability and costs);
d) Provide drafts or executed copies of all feedstock agreements and sales contracts or other
revenue-generating agreements that will provide revenue for the Project. Provide an analysis
of the creditworthiness of counterparties who are party to such agreements; and
e) Provide copies and detailed summaries of all other material sales and revenue contracts.

7.

Insurance Coverage: Provide a detailed description of the proposed insurance coverage for the
Project, together with a report from an insurance consultant that addresses the appropriateness
and adequacy of such coverage.

8.

Growth Plan: Describe any proposals for expanding the business enterprise beyond the Project.

9.

Jobs Created/Retained: Provide a brief description of the number and types of jobs expected to
be created or retained in the United States if the Project were to proceed as proposed in the
Attachment A – Part II Submission

36

Application. The types of jobs may be expressed using job titles, broad labor categories, or the
Applicant’s existing practice for describing jobs provided that the descriptions so provided are
commercially identifiable. The number of jobs shall be expressed as full-time equivalent,
calculated cumulatively as all hours worked divided by the total number of hours in a full-time
schedule, as defined by the Applicant. Applicants should include in their narrative the
information used to calculate the full-time equivalent figure.
H. Financial Plan
1.

Financial Statements: Provide unaudited financial statements for the Applicant for the past two
years (or since inception of the Applicant has not been in existence for at least two years),
prepared in accordance with generally accepted accounting principles in the United States (“U.S.
GAAP”). Include all associated notes and describe business and financial interests of controlling
or commonly controlled organization or persons, including parent companies, subsidiaries, and
other affiliated entities or partners of the Applicant or Project Sponsors.

2.

Project Financial Model and Analysis:
a) Include a working financial model (with formulas) with pro-forma financial statements for
the Project. List the major assumptions in a separate worksheet within the model.
(i) Include assumptions and calculations for the proposed tenor of the Guaranteed
Obligation, plus two (2) years.
(ii) Include detailed income statements, balance sheets, cash flow statements, and waterfall
statements.
(iii) Include financial ratios (e.g., interest coverage ratios, fixed charge coverage ratios, debtto-capital ratios, asset coverage ratios, and working capital ratios (including high and low
points)) and other relevant terms in the proposed term sheet. Highlight those periods
during construction and operation in which non-compliance with the proposed financial
ratios is most likely.
(iv) Include sensitivity analyses that demonstrate the Project’s performance under appropriate
stress scenarios, including low sales prices, reduced Project performance, loss of major
customers, high input material prices, and the impact of future competing technologies.
(v) Include cost assumptions based on compliance with the Davis-Bacon Act.
(vi) Include a complete description of the operational and financial assumptions and
methodologies incorporated in the financial model.
b) The financial analysis should demonstrate that there is reasonable prospect that the Applicant
will be able to repay the principal and interest on the Guaranteed Obligation and any other
Project debt incurred. Discuss the principal factors that could impair the Applicant’s ability
to meet its debt service obligations, including the Guaranteed Obligation.

3.

Detailed Financial Plan: Provide a detailed financial plan for the Project, prepared in
accordance with U.S. GAAP.
a) List all proposed sources of expected equity and debt funding by provider, type, and
aggregate amount, and provide a copy of the financial closing checklists for each financing, if
available.
Attachment A – Part II Submission

37

b) Describe uses, timing, and amount of expected equity and debt funding.
c) For each party associated with the Project, provide a detailed description of their projected
liabilities over the term of the Loan Guarantee Agreement.
d) Include a summary of any funding intended to be procured through the use of special purpose
entities. Summarize each tranche of funding (e.g., amount, maturity, amortization schedule,
the proposed loan guarantee percentage, and whether it is a fixed- or floating-rate tranche).
e) Include a summary of any funding that will be tax-advantaged debt to which Section 149(b)
of the Internal Revenue Code may be applicable. Summarize measures that will be taken to
avoid (i) effective subordination of federally guaranteed debt to tax-advantaged debt, (ii) the
use of any federal guarantee as collateral to secure tax-advantaged debt, and (iii) any linkage
of federally guaranteed debt with tax-advantaged debt.
f) Include a schedule indicating all anticipated short term financing or credit facilities required
for on-going operations of the Project, including all working capital facilities, performance
bonds and similar forms of financing available to or anticipated to be available to the Project.
Describe the nature of the security or collateral that is intended to be made available to secure
these working capital and other short term facilities.
4.

Proposed Term Sheet:
Obligation.

Include a very detailed proposed term sheet for the Guaranteed

5.

Credit History: Provide the credit history of the Applicant and any business entity owning or
controlling a five percent (5%) or greater interest in the Project or the Applicant, the offtaker(s),
the feedstock supplier, if applicable, and the EPC contractor. Provide the full name of the entity,
address, and date of organization.

6.

Collateral: Provide a listing, describe, and value all assets associated, or to be associated, with
the Project and any other assets that will serve as collateral for the Guaranteed Obligations,
including any intellectual property necessary for the operation of the Project. Valuations must be
supported by independent, third-party appraisals for existing assets and commercial cost
substantiation for assets to be constructed for the purpose of the Project, and in all cases
acceptable to DOE. An appraisal of real property must be performed by a licensed or certified
appraiser consistent with the Uniform Standards of Professional Appraisal Practice promulgated
by the Appraisal Standards Board of the Appraisal Foundation. The appraisal should include
information on the useful life of all physical assets expected to serve as collateral, including a
depreciation schedule (prepared in accordance with U.S. GAAP).

7.

Consideration of Pari-Passu Status: Provide information and financing documents regarding
any existing senior secured debt of any party providing a guarantee or other credit support.

8.

Preliminary Credit Assessment: Provide a preliminary credit assessment for the Project from a
nationally recognized rating agency.
a) If the Project will be financed using a corporate financing structure or will benefit from any
third-party guarantees, provide a detailed public or private credit assessment of the Borrower
and Project Sponsor or such third-party guarantor. Such assessment should take into account
the impact of the proposed transaction on the Borrower and Project Sponsor or such thirdparty guarantor’s credit rating and evaluate the Project Sponsor or third-party guarantor’s
financial viability in the absence of a DOE loan guarantee or any other credit support.
Attachment A – Part II Submission

38

b) If the Project will be financed using a project financing structure, provide a detailed public or
private credit assessment of the Project. Such assessment should evaluate the Project in the
absence of a DOE loan guarantee or any other credit support.
9.

I.

Other Financial Information: Include any other information about the Applicant and any
Project Sponsor that provides a comprehensive summary of the Applicant or Project Sponsor’s
business and financial situation, including specific information relevant to analyzing historical
cash flow on a secular, normalized basis.

Certifications
1.

Lobbying, Debarment, and Related Certifications and Assurances: In submitting an
Application for a loan guarantee under Title XVII, Applicants must provide certain certifications
and assurances contained in the form entitled “Certifications for Use with Applications for
Department of Energy Loan Guarantees under title XVII of the Energy Policy Act of 2005”
which form may be downloaded from the Program Website:
http://energy.gov/sites/prod/files/Certifications%20for%20Use%20with%20Doe%20Loan%20Gu
arantees.pdf

2.

Applicant Validation Statement: Provide a written statement and supporting analysis attesting
that, based on the information provided to DOE, there is a reasonable prospect that all debt of the
Project (including the Guaranteed Obligation) will be repaid on time and in full (including
interest) from cash flow generated by the Project and in accordance with the terms proposed in
the Application.
As part of the Project evaluation process, DOE may require that Applicants provide additional
certifications or supporting documentation. DOE is not authorized to issue a loan guarantee to
any party that is delinquent on federal debt, including federal tax debt.

3.

Penalty of Perjury Statement: The following certification must be included with each
Application:
“The undersigned certifies that the data and information submitted and the representations made
in this Application and any attachments to this Application are true and correct, to the best of the
Applicant’s knowledge and belief after due diligence, and the Applicant has not omitted any
material facts. The undersigned further certifies to having full authority to bind the Applicant.
_________________________________
Applicant (Organization Name)
_________________________________
Name of Applicant’s Authorized Officer
(will fulfill on-line certification)
_________________________________
Signature of Authorized Officer
(for paper copy only)
_________________________________
Title of Authorized Officer
_________________________________
Date”
Attachment A – Part II Submission

39

ATTACHMENT B - NATIONAL ENVIRONMENTAL POLICY ACT COMPLIANCE

I.

Information to be Submitted to DOE in an Application
Under Section III.B of this Solicitation, an Application must include a report containing an analysis of the
potential environmental impacts of the Project that will assist DOE in assessing whether the Project will
comply with all applicable environmental requirements and will enable DOE to complete any necessary
reviews under NEPA. Accordingly, each Applicant should submit the following information to assist
DOE in determining the appropriate level of NEPA review, and in preparing an EA or EIS if necessary:
A. Description of Project Facilities, Site, and Surrounding Location: Describe and, as appropriate,
identify and quantify:
1.

Purpose of the Project facility and materials produced, including how they would be
transported;

2.

Present an overall schematic process diagram that identifies all inputs and outputs;

3.

New facilities to be constructed, existing facilities to be modified, and materials and equipment
to be used in construction;

4.

Size of the new and modified facilities and of the total Project site (including support facilities
needed, such as parking lots and treatment facilities, and associated land uses, such as
agricultural production areas);

5.

Extent of necessary site clearing and excavation;

6.

Associated construction of transport infrastructure (e.g., access roads, railroad links, docks,
pipelines, and electrical transmission facilities) or waste treatment facilities;

7.

Construction milestones;

8.

Expected operating cycle and any aspects of the Project that could result in impacts that vary
over time (e.g., with time of day or season of the year);

9.

Expected Project lifetime, including expansion of initial Project at the proposed site and to other
sites;

10.

Project site and location, including a map;

11.

Whether a Phase 1 Environmental Site Assessment has been completed, if so, summarize
results;

12.

Ownership of or jurisdiction over the land by federal, state, regional, or local agency;

13.

Existing transportation corridors and infrastructure (e.g., electricity, natural gas, water, and
wastewater);

14.

Nearby land use and features (e.g., residences, industrial facilities, and recreational areas);

Attachment B - NEPA Guidance

40

15.

Areas with special designation both on the Project location and nearby, including national
forests, historic or culturally significant sites, wetlands, floodplains, critical habitat for
designated threatened or endangered species or the presence of those species, prime and unique
farmland;

16.

Ambient air quality; and

17.

Near-by human populations (including minority and low-income).

B. Resource Consumption Rates and Effluent Emissions Streams and Impacts:
1.

For both construction and operation, describe and, as appropriate, identify and quantify:
a) Material resources to be used, including how they would be transported;
b) Source(s) and rates of water consumption and adequacy of water supply sources;
c) Onsite and offsite releases (air emissions, including carbon dioxide, odors; water effluents
and other liquid waste streams; solid and hazardous waste), including rate and duration of
such substances as criteria pollutants, wastewater, and hazardous substances;
d) Onsite and offsite waste treatment and disposal; and
e) Number of on-site workers.

2.

Identify a spectrum of scenarios that could result from process upsets, accidents, human error,
and intentional destructive acts.

3.

Analysis of potential impacts to physical, biological, cultural, and socioeconomic resources
from facility construction and operation, including any mitigating measure(s) to be used or
considered to be used to reduce environmental impacts, or any adverse effects that cannot be
avoided.

C. Status of other environmental and regulatory reviews: Such status reports should include, but not
be limited to:
1.

If the Project would require review or permitting by another federal agency or by a state,
regional, or local agency, identify the required reviews and permits and tell the status of each;
and

2.

If an environmental impact review (e.g., NEPA documentation or agency consultations) has
been prepared (or is in the process of being prepared or is anticipated) for the Project (by
another federal agency or a state agency), provide a summary or copy of the review.

D. Alternative sites or operating parameters: Please identify:
1.

Any other sites considered for the Project, and state whether they remain options or give the
reasons for not proposing them; and

2.

Any alternative operating parameters for the Project (e.g. materials or processes to be used) and
state whether they remain options or give the reasons why options are not available.

Attachment B - NEPA Guidance

41

E. Post-operational requirements: To the extent possible, please describe:
1.

Any reasonably foreseeable future requirements, including site close-out and site restoration;
and

2.

Any related decontamination and decommissioning activities, including associated waste
streams.

F. Other actions in the Project area: Describe existing or possible future facilities and activities that
may impact the same resources as the Project in the same geographic area(s) during the same
operational time frame, including those by other agencies, companies, or individuals.

Attachment B - NEPA Guidance

42

ATTACHMENT C - SUMMARY LIFECYCLE GHG EMISSION DATA WORKSHEET
The OMB Control Number for this collection of information is 1910-5134. The OMB expiration date for
this collection of information is 11/30/2016.

Burden Disclosure Statement
This data is being collected to support Applications for loan guarantees from the Department of Energy under
Title XVII of the Energy Policy Act of 2005, as amended (42 U.S.C. §16511, et seq.). The data you supply will
be used for the review of Applications for loan guarantees under Title XVII.
Public reporting burden for this collection of information is estimated to average 130 hours per response,
including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information. Send comments regarding this burden
estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to
the Office of the Chief Information Officer, Records Management Division, IM-23, U.S. Department of Energy,
1000 Independence Ave SW, Washington, DC, 20585-1290; and to the Office of Management and Budget,
OIRA, Washington, DC 20503.
Notwithstanding any other provision of the law, no person is required to respond to, nor shall any person be
subject to a penalty for failure to comply with, a collection of information subject to the requirements of the
Paperwork Reduction Act unless that collection of information displays a currently valid OMB control number.
The OMB Control Number for this collection of information is 1910-5134. The OMB expiration date for this
collection of information is 11/30/2016.
Submission of this data is required to obtain a guarantee of the repayment of principal and interest on loans
relating to Projects that qualify for such guarantees under Title XVII of the Energy Policy Act of 2005 (42 U.S.C.
§16511, et seq.).

Attachment C – Summary Lifecycle GHG Emissions Data Worksheet

43