amherst written response

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TOWNOFAMHERST

REQUESTFORPROPOSALSFOR

OLDLANDFILLREUSEPROPOSAL

Presentedby:

Inpartnershipwith:


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TownofAmherstRFPforOldLandfillReuseProposal

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6.2.Indemnification...........................................................................................................................416.3.RegulatoryandLegislativeRisk...................................................................................................416.4.ExcessPowerGenerationRisk ....................................................................................................41

7.TeamQualifications .......................................................................................................... 417.1.BlueWaveCapital........................................................................................................................41

7.2.BoschSolarEnergyAG................................................................................................................427.3.Tighe&Bond ..............................................................................................................................437.4.TRCSolutions ..............................................................................................................................437.5.SmartEnergyCapital,LLC ...........................................................................................................43

8.PersonnelQualifications ................................................................................................... 448.1.BlueWaveCapital........................................................................................................................448.2.BoschSolarEnergyAG................................................................................................................458.3.Tighe&Bond ..............................................................................................................................468.4.TRCSolutions ..............................................................................................................................488.5.SmartEnergyCapital,LLC ...........................................................................................................49

9.PerformanceRecordofProponent.................................................................................... 509.1.BlueWaveCapital........................................................................................................................509.2.BoschSolarEnergyAG................................................................................................................539.3.Tighe&Bond ..............................................................................................................................549.4.TRCSolutions ..............................................................................................................................559.5.SmartEnergyCapital,LLC ...........................................................................................................57

LISTOFAPPENDICES

APPENDIXA DETAILEDSITEPLAN,LAYOUT&CONFIGURATION

APPENDIXB EQUIPMENTSPECIFICATIONS

APPENDIXC MADEPPOST-CLOSUREAPPLICATION

APPENDIXD MADEPFAST-TRACKPERMITTINGPROCESS

APPENDIXE MADEPPRESENTATIONS&FACTSHEETS

APPENDIXF CONSTRUCTIONSCHEDULE

APPENDIXG WMECOINTERCONNECTIONAPPLICATION

APPENDIXH WMECONETMETERINGRULES

APPENDIXI WMECOTARIFF

APPENDIXJ DETAILEDPRODUCTIONSCHEDULE

APPENDIXK BOSCHSOLARENERGYAGQUALIFICATIONS

APPENDIXL TIGHE&BONDQUALIFICATIONS

APPENDIXM TRCSOLUTIONSQUALIFICATIONS

APPENDIXN SMARTENERGYCAPITALQUALIFICATIONS

APPENDIXO SMARTENERGYCAPITALLETTEROFINTEREST

APPENDIXP MARENEWABLEPORTFOLIOSTANDARD

APPENDIXQ MADEPGREENFIELDLANDFILLAPPROVAL


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APPENDIXR SIGNEDDISCLOSUREOFBENEFICIALINTERESTS,NON-COLLUSION,AND

TAXCOMPLIANCECERTIFICATE

APPENDIXS SIGNEDADDENDUMACKNOWLEDGEMENTS

LISTOFTABLES

Table1: ProjectConstructionScheduleTable2: MACRSDepreciationSchedule

LISTOFFIGURES

Figure1: OldAmherstLandfillSectionLayout

Figure2: LayoutofOldAmherstPVSystem

Figure3: OneLineElectricalDiagram

Figure4: DistributionofAvailableSolarResource

Figure5: AverageSolarResourceDailyTimeSeries

Figure6: ExpectedProductionatOldAmherstLandfill

Figure7: BlueWaveTeamOrganizationChart


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LETTEROFTRANSMITTAL

December20,2010

OfficeoftheSuperintendent

DepartmentofPublicWorks586SouthPleasantStreet

Amherst,MA01002

RE: LetterofTransmittaltoTownofAmherst

RFPfortheOldLandfillReuseProposal

DearTownofAmherst,

BlueWave Capital, LLC (BlueWave) is pleased to submit this proposal in response to the Town of

AmherstsRequestforProposalsfortheDevelopmentofaSolarEnergyProject.

WebelievethisproposalmeetsalltermsandconditionsoftheRFP.InmakingthisproposalBlueWaveis

pleased to have the support and financial backing of leading solar energy project finance andconstruction companies with hard-earned, well-deserved reputations for integrity and excellence in

deliveringandfinancingsolarenergyprojectsinMassachusettsandacrossNorthAmericaandEurope.

BlueWaveanditspartnersproposetoinstall,own,operate,andmaintainonesolarelectricgenerating

facilitywithatotalofatleastfourpointseventy-five(4.75)MWwithintheOldLandfillacrosstheroad

fromthetransferstationat740BelchertownRoadinAmherst.TheBlueWaveteamproposestoownthe

solargeneratingfacilities,provideleasepaymentstotheTownofAmherstandsellthenetmetering

creditsthe facility generates under a Power Purchase Agreement for a term of thirty (30) years. We

proposetoincludeinthePowerPurchaseAgreementanoptionfortheTowntopurchasethefacilityat

predeterminedintervals.

BlueWavesproposal willcreatesubstantialeconomicand environmentalbenefitsfor Amherstandits

residents,andhelptheTownto:

ProvidetheTownwith estimatedelectricitycostsavingsofover$25million overthelifeofthecontractgeneratedbyadedicatedsystemtotaling3.56MWoutofatotal4.75MWofinstalled

capacityonthelandfill;

ProvidetheAmherstRegionalPublicSchoolsorotherlocalentitywithanadditionalestimatedelectricitycostsavingsofover$7million overthelifeofthecontractgeneratedbyasystem

totaling1.2MWoutofatotalof4.75MWofinstalledcapacityonthelandfill;

ProvidetheTownwithvirtuallyallofitstotalelectricityconsumption fromaclean,renewablesolarphotovoltaicsystemthatwillnotinterferewiththeOldLandfillscompliancerequirements ;

ProvidetheTownlandfillwithyearlymaintenancemowing andminorsettlementadjustments; ProvidetheTownwithpropertytaxpaymentsofpaymentsstartingat$350,000duringthefirstyear

ofoperationsforthephotovoltaicsystemontheOldLandfillwiththosepaymentsadjustedona

yearlybasisbasedonfairmarketvalueassessmentsandwillprovideover$5millioninProperty

Taxesoverthelifeofthesystem ;

Eliminatetheriskassociatedwithvolatileandunpredictablefutureenergyprices; ProvidejobsandeconomicopportunityforAmherstbusinessesandresidents;and


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BlueWaveCapital,LLC

31MilkStreet

Boston,Massachusetts02109

Tel:(617)470.7297

Email:[email protected]


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EXECUTIVESUMMARY

BlueWave Capital LLC,in partnership with Bosch Solar Energy AG, Tighe & Bond, TRC Solutions and

SmartEnergyCapital,ispleasedtopresentthefollowingproposalforthedesign,construction,finance,

operation,andmaintenanceoftheTownofAmherstsSolarEnergyProject.

BlueWave has assembled a first-class team to use a proven methodology and United States-

manufacturedproductsfordeveloping,owningandoperatingphotovoltaicgeneratingsystems.

OurapproachallowstheTowntoexpedientlyandcost-effectivelyloweritsenergycosts,insulateitself

against volatile and unpredictable future energy costs, enhanceits property tax revenues, reduce its

carbon footprint, provide educational opportunities for Amherst students and members of the

community,andjobsandjobtrainingassistanceforAmherstworkers.

Ourproposalwill:

ReducetheTownselectricitysupplyexpensebyover30%whencomparedtoitscurrentcosts,ProvidetheTownofAmherstwithestimatedelectricitycostsavingsofover$25millionoverthe

lifeofthecontractgeneratedbyadedicatedsystemtotaling3.56MWoutofatotal4.75MW

ofinstalledcapacityonthelandfill;

ProvidetheAmherstRegionalPublicSchoolsorotherlocalentitywithestimatedelectricitycostsavingsofover$8millionoverthelifeofthecontractgeneratedbyasystemtotaling1.2MW

outofatotalof4.75MWofinstalledcapacityonthelandfill;

ProvidetheTownofAmherstwithover90%ofitstotalelectricityconsumptionfromaclean,renewablesolarphotovoltaicsystemthatwillnotinterferewiththeOldLandfillscompliance

requirements;

ProvidetheTownwithpropertytaxpaymentsofpaymentsstartingat~$350,000duringthefirstyearofoperationsforthephotovoltaicsystemontheOldLandfillandadjustedannuallyonascheduletobeagreeduponwiththeTownbasedontheFairMarketValueestimateforthe

system.Thisisexpectedtoprovideover$5millioninPropertyTaxesoverthelifeofthe

system.

ReduceAmherstscarbonfootprintbymorethan6,000tonsperyearortheequivalentofpermanentlyremoving1,200carsfromtheroad,

HelpfurtherestablishAmherstasaGreenCommunityleaderintheCommonwealth,ProvideAmherstschoolchildrenwithexpandededucationalopportunityandAmherstworkers

withgoodpaying,meaningfuljobs.

Themembers of theteam have worked closelytogether on numerous projects in thepast and each

memberoftheteambringsitsownspecializedexpertise:

SoundandExperiencedProjectFinancingCapabilityo APowerPurchaseAgreement,whichincludesbuy-outoptionsfortheTownofAmherst,

fromanexperienced,nationally-recognizedleaderinsolarPVprojectfinance.

ExperiencedDesign,Engineering,andInstallationo Ourteamhasover30yearsofphotovoltaicdesign,engineeringandinstallationexperience,


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o Ourteamhassuccessfullyinstalledmorethan40MWofsolarPVsystems,o Ourteamhasextesivelandfillpermitting,closure,andpost-closureoperationsand

managementexperienceincludingpermittingtheonlysolargeneratingfacilityonaSolid

WastelandfillintheCommonwealth,

o Ourteamunderstandstheneedsandcultureofmunicipalgovernmentsandhasspecializedexpertiseinthefinancing,design,installationandmaintenanceofsolarPVsystemsformunicipalclients.

TrueProjectManagementExperienceo TheteamincludesBoschSolarEnergyAGastheDesign,Engineer,andConstructionpartner.

Boschmaintainsin-houseprofessionalprojectmanagers,engineers,andconstructionteams

who have extensive experience in bringing multi-million dollar projects to successful

commissioninginNorthAmericaandworldwide.

LocalExpertiseo Ourteamiscommittedtoemployingotherlocalcontractorswithagoalofhaving25%oftheprojectworkforcecomprisedofAmherstresidents.Wearealsocommittedtoproviding

apprenticeshipopportunitiesandjobtrainingforTownresidents.

o WeareeagertoworkwiththeAmherstSchoolDepartmentandotherstoinsurethatwemaximizeeducationalopportunitiesfromthisprojectforAmherstschoolchildren.

o Tighe&BondandTRC,Inc.areMassachusettsbasedfirmswithalonghistoryofsuccessfullymanagingandpermittingenergy,landfillandremediationprojectsinMassachusetts.

o BlueWave has advised more than 20 Massachusetts communities on renewable energypolicy,regulation,grantfundingopportunities,procurementandoverallenergystrategyand

hasworkedclosely withlegislators andpolicymakers tohelp shape therenewableenergy

policyandregulatorylandscapeintheCommonwealth.


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1.EVALUATIONCRITERIA

1.1.Proposalprotectstheexistinglandfillcaps.Proposalsthatdonotinvolveanymodificationtotheexistinglandfillcapsshallbeconsideredhighly

advantageous.Aproposalthatrequiresmodificationofthecapwillbeconsideredadvantageousonly

ifthemodificationstothecapscanbedoneinaMassDEPapprovedmethodas partoftheproject.Anyotherproposedmodificationshallbedeemedunacceptable.

TheBlueWaveproposaldoesnotinvolveanymodificationstotheexistinglandfillcap.Theproposed

photovoltaicsystemtobeinstalledattheOldLandfillintheTownofAmherstwillutilizestateoftheart

SchletterPVMax3ballastedrackingsystemsfortheinstallationofPVmodules.TheSchletterPVMax3

hasbeen developed toguaranteeeasy andcost effective installations of large-scale groundmounted

systems on sites where ground penetration is undesirable. The system is adaptable to almost any

terrain.Thedimensioningofthesystemisbasedonexactanddetailedanalysisofeachsiteincludingsoil

analysis,considerationofwindandsnowloads,aswellaspulloutandcompressiontestsoftherack

fundaments.Inaddition,Inverterskidswillbestrategicallyplacedandbuiltuponcementplatformsthat

willalsoprojecttheexistinglandfillcapandensuresafeoperationofthesystemduringitsservicelife.

WehavedesignedandpermittedprojectsonsitesquitesimilartotheOldLandfill.

1.2.Proposalprotectsoperationoflandfillgassystems.A Proposal that fully protects operation of landfill gas systems shall be considered highly

advantageous. A proposal that requires modification of the operation of the gas system shall be

advantageous only ifthe modificationscan beaccomplishedin accordanceDEPapproved methods.

Anyotherproposedmodificationshallbedeemedunacceptable.

TheBlueWaveproposalwillfullyprotecttheoperationof thelandfillgassystemoperatingontheOld

LandfillintheTownofAmherst.Theinstallationandmaintenanceoftheproposedphotovoltaicsystem

onthelandfillprovidesforsetbackstotheexistinggaswellsandmonitoringsystemssimilartodesigns

wehaveemployedonotherMSWlandfills.Thiswillensurecontinuedanduninterruptedoperationsofthelandfillgassystem.

1.3.ExperienceofteamproposingprojectIf the proposal includes any modification to or operation of a solid waste management activity, a

proposal that demonstrates at least ten years experience in solid waste management activities in

Massachusettsshallbeconsideredhighlyadvantageous.Aproposalthatdemonstratesatleastfive

years of experience shall be deemed advantageous. More than three years shall be deemed

acceptable.Lessthanthreeyearsshallbeunacceptable.

Theprojectteamhasdevelopedandfinancedmorethan40MWofsolarphotovoltaicenergyprojectsin

North America and Europe. Tighe and Bond and TRC, our environmental permitting partners, have

extensivelandfillpermittingandO+Mexperience.Tighe&Bond,isanationalenvironmentalconsulting,andengineeringfirmwithaMassachusettspresenceworkingwithfirmsofallsizesonfossil,renewable,

andlandfillprojectsnationwide.Theybringextensiveknowledgeandexperienceinthereuseoflandfills

toourefforts.

Ourelectricalengineeringandpermittingpartner,TRCSolutions,isaMassachusettsbasedengineering,

consulting and construction management firm providing integrated services to the energy,

environmental and infrastructure markets nationwide with over 2,400 professionals and 70 offices


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throughouttheUnitedStates.TRChaspermittednumerouswindandsolarprojectsacrosstheUnited

Statesaswellasprovideddesignandengineeringsupport.TRCledthepermittingeffortfortheonly

solarfacilityonanMSWlandfillintheCommonwealthandispresentlyengagedonasimilarprojectin

KernCounty,California.

BoschSolarEnergy AGis awhollyownedsubsidiaryofBoschAG,oneof theworldslargestindustrial

conglomerates. Bosch Solar Energy AG is a vertically integrated manufacturer and EPC firm with a

strongfinancialbalancesheet thus reducing projectcostsandfullymitigatinganyrisk ofconstruction

completionandoperationalefficiency.

Smart Energy Capital develops and finances solar PV projects throughout North America. The

Companys management team has extensive experience in solar project development, structured

financeandinvestmentmanagementand$180M in financialbackingforsolarPVprojectsfromDuke

EnergyServicesandIntegrys.

Section8ofourproposalcontainsadetaileddiscussionrelatedtotheteamstaffthatwillbededicated

tothisprojectaswellastheirqualificationsandareasofexpertise.

TRCSolutions,TigheandBondandBlueWaveeachhaveextensivelandfillandbrownfieldsdevelopment

experienceanddeepknowledgeofthepolicyandregulatorylandscapeassociatedwiththeoperation,

maintenance,re-use,andpermittingoflandfils.TRCrecentlypermittedtheonlysolargeneratingfacility

installationonalandfillinMassachusettsandoneofthefirstinthecountry.

BlueWavehasbeenactivelyinvolvedintheredevelopmentofcontaminatedpropertiessince2003and

its Managing Partner oversaw state and federal landfill regulation and permitting during his public

servicecareerasMassachusettsSecretaryofEnvironmentalAffairsandNewEnglandAdministratorof

theUnitedStatesEnvironmentalProtectionAgency.

TigheandBondhasalongrecordofcost-effectivelyprovidinglandfillengineering,permitting,operation

and maintenance services to numerous Massachusetts communities and has worked closely andeffectivelywiththeWesternRegionofficeofMassDEPonnumeroussolidwastemanagementissues.

1.4.Risktohuman,healthandtheenvironment.Proposals that pose no risk to human, health and the environment shall be deemed highly

advantageous. Proposals that pose minimum risk shall be considered advantageous. All other

proposalsshallbedeemedunacceptable.

BlueWaveCapitalbelievesthisprojectwillposeabsolutelynorisktohuman,healthortheenvironment.

TheproposedAmherstPhotovoltaicProjectisemissionsandwaste-freeandwillinnowayinterferewith

neighboringpropertiesandresidents.Furthermore,webelievethattheprojectwillactasastrongsignal

by the Town and its community regarding its commitment to environmentally sound and socially

responsible fiscal management and economic development. The Amherst Photovoltaic Project will

produceclean,renewableenergyforatleast30yearsforthebenefitoftheTownanditsresidentswith

noadverseenvironmentalimpacts.

1.5.Effectontheenvironment.Proposals that have a positive effect on the environment, i.e. reduces green house gases shall be

deemedhighlyadvantageous.


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BlueWaveCapitalsproposaltoconverttheOldLandfillintoasolarphotovoltaicenergyfacilitywillhave

ameasurableandimportantsetofpositiveeffectsontheenvironment.The4.75MWfacilityBlueWave

proposestobuildwouldprovideforvirtuallyalloftheTownofAmherstselectricityconsumption.The

facilitywouldavoidtheemissionofover6milliontonsofCO2peryearandwouldbeequivalenttothe

permanent removal of over 1,200 automobiles from the road. It will have substantial benefits in

reducing Sulfur Dioxide, Nitrogen Oxide, Volatile Organic Compounds and other harmful emissions

associated with fosil fuel-generatedelectricity. Lastly,the environmental benefits would be a strong

complementtotheeconomicbenefittotheTownofAmherstderivedfromthediscountedpurchaseof

theprojectselectricityoverthelifeofthecontract.

1.6.Projectcompatibilitywithneighboringproperties.Proposalsthatarecompatiblewithneighboringpropertiesshallbeconsideredhighlyadvantageous.

Proposals that involve minimum disruptionshallbe considered acceptable. Proposals that arenot

compatibleshallbeconsideredunacceptable.

BlueWave Capital believes this project will be compatible with neighboring properties and, in fact,

provide solar opportunities for them that will further reduce their own electricity costs.

We will work with Town officials to meet with and listen to neighborhood residents to help themunderstandallaspects oftheproject,participatein theplanningfortheproject,andstayinformedof

projectprogress.Whiletheconstructionandoperationoftheprojectisneitherloudnornoxious,wewill

schedule facility construction activity (estimated to be approximately 3 months) at times most

convenient to neighborhood residents. BlueWave has extensive experience working with community

groups and elected officials on complex development projects and very much values, respects and

practicesatransparent,community-based,interactiveapproachtoprojectdevelopment.

Furthermore, webelievethatthe project will act as a strong signal bythe Town and its community

regarding itscommitment to environmentally sound and sociallyresponsible economic development.

The Amherst Photovoltaic Project will produceclean, renewable energy for at least 30 years for the

benefitoftheTownanditsresidents.

BlueWave has a close affiliation with Alteris Renewables and has been deeply involved in the

development of Alteriss Zero Down Solar program whereby owners of residential, commercial and

institutionalpropertiescantakeadvantageofno-money-down,lowcostfinancingtoinstallsolarenergy

systemson theirproperties. Thesystem costsare paidbackovertimethrougha low-interest loan.In

most cases property owners are able to reduce their overall electricity bill through this program.

BlueWave will work with the Town and community leaders to make this program available to

neighboring property owners as well as to residents throughout the Town thereby enhancing the

benefitstotheTownanditspropertytaxpayers.

1.7.Noiselevelsfromuseofsite

Proposals that do not result in constant noise or sound above 70 db shall be considered highlyadvantageous.Proposalsthatresultinnoiseabove70dbforperiodsoftimebetween7:30Amand

4:00 PM Monday thru Friday shall be considered Advantageous. All other proposals shall be

consideredunacceptable.Emergencysituationsandconstructionactivitiesshallbeexemptfromthis

condition.

BlueWave Capital believes this project will not generate any type of constant noise. Photovoltaic

electricgenerationsystemsareinertinnatureandwouldthusnothaveanimpactonnoiselevelsinthe

vicinityoftheOldLandfill.Asmentionedabove,wewillworkcloselywiththecommunitytoinsurethat


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construction activities, while not loud, are undertaken during periods most convenient for

neighborhoodresidents.

1.7.BestcompensationtoTownofAmherstProposals that provide the best compensation to the Town of Amherst will be considered Highly

Advantageous.

BlueWaveproposestoconverttheOldLandfillintoasolarphotovoltaicenergygenerationfacilitythat

willprovideforvirtuallyalloftheTownselectricityneedsaswellasprovideadditionalandconsiderable

financialbenefitstotheTownoverthelifeoftheproject.Detailsregardingfinancialrecompensetothe

TownofAmherstarecontainedwithinthePriceProposal.

2.PROJECTUNDERSTANDING

2.1.ProjectBackgroundThe BlueWave Capital team has created a concept design for a 4.75MW (DC) project to be located

within the Town of Amhersts old municipal landfill site across from the transfer station at 740

BelchertownRoad.Thissystemsizeisimportant,aswebelieveitwillbelargeenoughtoprovidethe

Town with a material portion of its energy needs (90+%), material cost savings over the life of thecontractandwillavoidsomeofthehurdlesfacedbylargerprojectsintheinterconnectionprocessgiven

theintermittentnatureofsolarphotovoltaicelectricitygeneration.

We estimate the Old Landfill can support a photovoltaic system of up to 4.75MW while ensuring

continueduseofthelandfillslandfillgassystemandpreserving,withoutalteration,thelandfillcapand

avoiding negative impact on human, health or environment. BlueWave proposes that the Town of

Amherstpurchasenetmeteringcreditsgeneratedbythephotovoltaicsystemandiswillingtoenterinto

discussionswithmembersoftheAmherstcommunitytosellanyexcessgenerationfromthesystemto

theSchoolDepartmentorotherlocalinstitutionsundersimilartermstothoseofferedtotheTown.

The proposed facility also falls well within the size limits set for qualification as a Solar Carve-out

RenewableGenerationUnit,withSolarCarve -outRenewableGenerationAttributes,asdefinedwithin

thedraftRPSregulations ofthe Massachusetts Departmentof EnergyResourcesRegulation225CMR

14.00.

BlueWaveiscommittedtoengagingtheWMECODistributedGenerationteamtoexplorewaysinwhich

thetotalcapacityoftheAmherstSolarProjectmaybeincreasedfurthergiventhespaceavailableonthe

siteandtheTownsabilitytouseadditionalpowergeneratedbythesystem.

ThenewSolarCarve-Outsystemensuresthattheprojectwillhavealong-termrevenuestreamforSolar

RenewableEnergyCredits(SRECs).ThesaleoftheseSRECsenablesBlueWaveCapitaltooffertheTown

of Amherst an attractive financialproposal that willallow the Town to purchaseelectricity at a rate

substantiallybelowmarketratesforthedurationofthecontractandensurethefinancingandlong-

termviabilityoftheProject.AfurtherdiscussionoftheimportanceoftheSolarCarveOutandSRECsis

includedlaterinthisdocument.

2.2.ScopeofEPCWorkBosch Solar Energy will supply a turnkey 4.75MW DC Ground-Mounted Photovoltaic Power Plant by

offering Design and Engineering, Construction, Project Management and System Commissioning

Services.BoschwillalsoprovideOperationandMaintenanceforthelifetimeofthesystemasithaswith

dozensofprojectsinNorthAmericaandEurope.


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Thesystemwillbecomprisedofone4.75MWfacility.Thesystemdesignwillbeoptimizedforlocal

ambient conditions,electricalgrid characteristics, topographicfeatures of thelandfill andlandfillcap

load capacity. Duringthedesign phase,BoschSolarEnergywillcoordinate with theTownof Amherst,

WMECO,andISO-NEtodesignthePhotovoltaicPowerPlantsothatitmeetscustomerexpectationsfor

performance,reliabilityandsafety,minimizesimpacttothelocalgrid,andmeetsallrelevantstandards

includingIEEE1547,UL1741,andNEC2008.TigheandBond,inpartnershipwithBosch,willperforma

geo-technicalanalysistoensuretheintegrityofboththesolarPVsystemandthelandfillforthelifetime

ofthepowerpurchaseagreement.Asetofconstructiondrawingswillbedevelopedwhichwillincludea

sitelayoutdesignatinglocationsofPVsystemcomponents,electrical1-lineand3-linedrawingsdetailing

allelectricalcomponentsfromthePVmodulestothegrid-interconnection,modulemounting,conduit

routing and performance monitoring data flow diagrams. Construction drawings for the proposed

systemwillbestampedbyaprofessionalengineerlicensedinthestateofMassachusetts.

BlueWave and Bosch will manage the permitting, construction and utility interconnection of the PV

systemby coordinatingwiththeTownof Amhersts Building Department,WMECO,ISO-NE, Tigheand

Bond and TRC Solutions. Bosch will specify and source all major components required in the

constructionofthePVpowerplanttoensurethatthesecomponentsmeetallrelevantstandardsforPV

systemsincluding theNEC, ULandIEEE.TheProject ManagementTeamwillsourceproven,local sub-

contactors to install the mounting structure, electrical system and data monitoring devices while

workingalongsideAmherstandWMECOofficialstomakesurethesystemissafetocommission.

Once the system has been constructed Bosch Solar Energy will perform a System Commissioning

Checklisttoensurepropersysteminstallationandfunctionality.Oncethechecklisthasbeencompleted,

thesystemwillbeCommissionedandanOperationandMaintenance(O&M)Manualwillbeissued.

Themanualdetailssystemspecificsandoperatingconditions,componentmaintenanceschedulesand

procedures. The manual alsocontains an Appendix, which includescomponents specification sheets,

constructiondrawings,permitsandcommissioningdocuments.Trainingsessionswillbeconductedby

Bosch Solar Energy, as part of the system commissioning, to instruct Amherst Department of Public

WorksstaffandotherofficialsasappropriateonthePVPowerPlantanditssafetyfeatures.

BoschSolarEnergywillprovideO& Mon thesystemforthedurationof thecontract.On abi-annualbasis, electrical connections and mounting connections will be torqued to the manufacturers

specificationsandanalyzedforweathering,debriswillberemovedfromonoraroundthePVmodules,

the system performance will be tested, concrete pads and footings will be examined for cracks or

displacementandinverterairfilterswillbechanged.Throughoutthelifeofthesystemanyalertsfrom

theDataAcquisitionSystemwillberespondedtoimmediatelytominimizesystemdowntime.

Aspartofon-goingmaintenanceof thesystemandthe maintenanceofthe landfillconsistentwithall

DEPrequirementswearepreparedtoprovideservicesor fundingtooff-setcoststheTownmayincur

formowing,landfillmonitoringorotherlandfillmaintenanceobligationsshouldtheTownDPWorother

officialssodesire.

2.3.EPCAssumptionsIn order to complete this proposal, we have consulted extensively with Tighe and Bond, TRC and

WMECOin orderto developconfidence inseveral assumptionswe aremaking regardingthe Amherst

Landfill site, as this information is crucial in determining system costs and scope of work. The

assumptionswehavemadeandinwhichwehaveconfidenceare:

The Amherst Landfill Site will be suitable to install a ground-mounted ballasted system. The geo-

technical study will be favorable towards the sites ability to bear the static load of the mounting


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structure,thePVmodules,theinverter,transformerandswitchgear,inthelocationdesignatedforthem

fromthesitelayout.

Thelandfillsitewillrequirelittleornositepreparationtobeginconstructionofthepowerplantfacility

andPVmodulescanbeorientedduesouthinordertomaximizePVenergyproduction.

Electrical interconnection can be made to WMECOs electric power system (EPS) without significant

impacttothegridcapacityandwithoutsignificantcostsassociatedwithanyrequiredupgradestothe

EPS.

2.4.SiteLayoutFigure1belowshowstheTownofAmherstsOldLandfillwithAreaDetail.Figure2belowshowsa

conceptSitePlanfortheTownofAmherstsSolarEnergyArray,includingtheapproximatelocationsof

modulesandinvertersonthesite.TheBlueWaveproposalcontemplatestheuseofareas5&7ofthe

OldLandfillwhileleavingAreas6&8unused.An8.5x11scaleversionoftheSitePlanisincludedin

AppendixA.Thesitelayoutwascreatedassuming20,664Boschc-SiM60230WcrystallinePVmodules.

Themodulesareconnectedinstringstoathreeseparateinverterstations,twoofthem1.5MWACand

oneofthem1MWAC.TheinverterstationscontainAdvancedEnergySoloron500500kWinverters

anda1000kVA480Y/138000Dtransformers.DetailedproductspecificationsforthePVmodules,inverterandgroundmountsystemareincludedinAppendixB.Thearraysaretiltedatanangleof20

degreestooptimizetheyearlyoutputandminimizewindloadingonthestructures.Thearraysare

arrangedinrowswithapproximately10betweenrows.Finallayoutwillbedeterminedthroughthe

postclosurepermitprocesswithMADEP.DetailsontheMADEPprocessandthemodules,inverters,

andarraysareprovidedintheAppendicesofthisProposal.

Figure1:TownofAmherstOldLandfillMapwithAreaDetail


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andMADEPtoensurethatourprojectdoesnotinterfereandcanactuallyhelpfacilitatetheprocessof

gradingofArea5tocorrectsettlementonthesiteunderaMajorModpermitfromtheMADEP.

Materialsandstudiesthatwewillprovideaspartofthispermittingprocessareasfollows:

SolidWasteSiteAssignment -Document thelandfills solidwastesiteassignment,particularlyany specific requirements or limitations that would constrain, preclude or prevent the

implementationofapostclosureuseattheclosedlandfill.

LandfillPropertyDeed: Identifyanylimitationsestablishedforthepropertythatmayconstrainorprecludetheproposedactivity.

Environmental Site Assessment - Provide a summary of the findings of the site assessmentperformedinaccordancewith310CMR19.150,andevaluatetherelevanceofthatinformation

totheproposedpostclosureuseactivity.Identifyanyadditionalassessmentworkthatmaybe

neededtoevaluatetheimpactsoftheproposedpostclosureactivity.

Closure Permit and Closure Certification - Include copies of the closure permit and closurecertificationapprovalissuedbyMassDEPforthelandfill.

Site Plan Plan showing the landfill limits, siteassignment limits, and allfeatures/appurtenancesonthesiteincludingabuttingpropertieswithina500 footradiusof

thelandfill.

LandfillCappingDesignPlanPlanshowingallfeaturesofthelandfillsexistingcappingsystemandanyproposedchangestothatdesign.

PostClosureUseDesignPlanPlansandreportsdescribingtheactivitiesrequiredtoprepare,construct,installandoperatethepostclosureusedevelopmentandassociatedactivities.

Storm Water Drainage/RunOff Control Plan Plan showing all storm water controlsystems/featuresandanyalterationsthatwillbeneededforthepostclosureactivity.

StormWaterErosionControlPlanPlanshowingallerosioncontrolfeaturesassociatedwiththeconstructionandoperationofthepost closureuse.

LandfillGas Control/Monitoring Plan Description and planshowingall existing gas controlequipment as wellas anymodifications to thegas controlsystem that would be required to

accommodatethepostclosureuse.

GeotechnicalSettlementandStabilityAnalysis Description of the existing waste mass(i.e.type, depth, etc) and the potential for differential settlement, potential effects on the

postclosureuseandananalysisofthestabilityofallstructuresandreinforcementnecessary

tobuildonthelandfillcapandsideslopes.

Capping System Interface Description and plan illustrating the relationship between theexistingcappingandtheproposedconstruction,installation,andoperationofthepost

closure

use.Describehowthepostclosureusewilloverlay thecappingsystem,and whether(andif

so,how)itwouldrequirepenetratingthecappingsystem.

Utilities Descriptionandplan detailingall existing utilitiesand anynewutilitiesthatwillberequiredforthepostclosureactivity,suchasutilitylinesthatwillsupportconnectionstothe

electrictransmissiongridorotherelectricityusers


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Environmental Monitoring Description and plan illustrating the landfills existingenvironmental monitoring systems, focusing on landfillgas monitoringsystemsand measures

thatwillsafeguardagainstlandfillgasbuild upandan explosion/fireriskassociatedwiththe

postclosureuse.

Qualitative Health & Environmental Risk Assessment Demonstration that the proposedpost closure use activities (construction, maintenance activities) will not pose a health or

safetyrisktoeitherthepublicoroperatorsofthepostclosureuse.Ambientairmonitoring

andnearsurfacemethanemonitoringmaybenecessarytoevaluatelandfillgasemissionsand

theintegrityofthecap.

PostClosure Monitoring & Maintenance Plan A description of all associated activitiesregardingthemonitoringandmaintenanceofthelandfill/siteinclusiveofthepostclosureuse

activityasitrelatestomaintainingtheintegrityofthelandfillcappingsystem.

FinancialAssuranceDescriptionofthemechanismthatwillbeusedtoprovideassurancethatthecareandmaintenanceofthelandfillcappingsystemisproperlyperformedthroughoutthe

30

yearpost

closureperiod(thismustincludetheoperationalandmaintenanceneedsofthepostclosureuseactivity),inaccordancewith310CMR19.051.

Wetlands Protection Plan (310 CMR 10.00) Documentation of a determination of theapplicability of the Massachusetts Wetlands Protection Act. This project will not impact

wetlands

MEPA Description and documentation that the proposed postclosure use activity is incompliancewiththeprovisionsof301CMR11.00.Duetothesizeofthisproject,MEPAisnota

requiredprocess.

Followingsubmissionofallrequiredmaterials,weexpectthepermittingprocesstotakeroughly100

calendardaysforbothAdministrativeandTechnicalreviewbyMADEP.Concurrentwiththisprocess,we

willproceed withzoning review with theTown of Amherst. Building permits and other construction

permitswillbeinitiatedfollowingMADEPapprovalandshouldbeobtainedwithin2-3weeks.

2.6.PhotovoltaicSystemPermittingBlueWave,TRCandTigheandBondwillapplyforandprocureallnecessarylocal,regional,andstate

permits.Wewillensurethatallsuchpermitsareapprovedandavailablebeforethestartofinstallation.

As part of the preparation for project construction, we will provide the following information as

necessaryforinclusioninrequiredpermitapplications:

1. Elevationplansshowingfront,side,andrearviewsoftheproposedstructurestobebuilt2. SitePlan,includingphotovoltaicarraylayoutstampedbyaProfessionalEngineerandshowing

thesiteboundaries,planviewofproposedsystem,andanyotherrelevantsitedetails3. Electrical Diagram detailing the photovoltaic system wiring, associated components, over

currentdevices,andelectricalinterconnectiondetail.Electricaldesignwillbecompliantwith

theNationalElectricalCodeandwillbestampedbyaProfessionalEngineer.

4. Documentation of the major system components to be used, including modules, mountingsystem,andinverter

5. BlueWavename,address,andcontactinformation


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6. Name,address,phonenumber,andsignatureoftheprojectowner,aswellasallco-ownersorpropertyowners

7. Name,contactinformation,andsignatureofanyagentsrepresentingtheprojectowner8. Documentation of actual or prospective control of the project site, sufficient to allow for

constructionandoperationoftheproposedsolarphotovoltaicinstallation

9. Plan for the operation and maintenance of the large-scale ground-mounted photovoltaicinstallation,whichshallincludemeasuresformaintainingsafeaccesstotheinstallation,as

wellasgeneralproceduresforoperationandmaintenanceoftheinstallation

10.Proofofliabilityinsurance11.Emergencyresponseplan,ifrequired,detailingmeansofshuttingdownthephotovoltaicsystem12.WewillalsoaskAmhersttoidentifyaresponsiblecontactpersonforpublicinquiriesthroughout

thelifeoftheproject

Sincetheproposedprojectisfortheconstructionandoperationofanewrenewableenergyfacility,an

application for qualification under the renewable energy portfolio standards is required to receive

SRECs. The facility will qualify as a Small Power Production facility and receive RECs based on the

amountofenergygenerated.AqualifyingrenewablegenerationunitiscreditedwithoneSRECforevery

1,000kWh,oronemegawatt-hour(MWh),ofelectricityitproduces.BlueWavewillfollowtheExecutive

Office of Energy and Environmental Affairs' online application process for RPS Class I applicants to

submitacompletedStatementofQualificationApplicationform.

StatementofQualificationPursuanttoMassachusettsRPSTheMassachusettsDepartmentofEnergyResources(DOER)mustgrantaStatementofQualification

for a solar energy project to qualify as a New Renewable Generation Unit under theRenewable

Energy Portfolio Standards. Qualification enables a solar PV system operator to sell SRECs to

facilitiesneedingadditionalcreditsintheirportfolio,orotherwiseontheopenmarket.

2.7.ProjectConstructionScheduleTable1belowshowsaprojectmilestoneschedulefortheTownofAmherstsSolarEnergyProject.This

is a conservative project schedule with contingency builtin to ensure delivery according to the

schedulesetforthinthisProposal.AfullGanttchartscheduleoutliningallthepertinenttasksforthis

projectisincludedinAppendixF.Asnotedabove,itassumesthestandardpermittingprocessthrough

MADEP, and as discussed below it assumes the standard interconnection process with WMECO.

BlueWavebelievesthisprojectwilllikelyqualifyforMADEPFastTrackPermittingandanExpedited

ProcesswithWMECO.(Probablyshouldaddonemonthtothepermittingscheduletoconformwiththe

text.)

Table1:ConstructionSchedule

ProjectMilestone CompletionDateRFPResponseSubmittal 12/23/2010

ContractSigned 2/03/2011

PPAExecuted 3/01/2011

InterconnectionApplicationFiled 3/03/2011

Post-ClosurePermitApplicationFiled 3/05/2011

ModuleSupplySecured 7/14/2011


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LocalPermitsAwarded 6/03/2011

Post-ClosurePermitsAwarded 6/03/2011

InterconnectionAgreementSigned 6/10/2011

FinancialClosing 6/15/2011

ConstructionCompleted 9/08/2011

ProjectCommissioning 9/20/2011

2.8.EquipmentProcurement&ConstructionManagementPlan2.8.1.EquipmentProcurementPlan

BlueWaveproposesinstallingBoschSolarEnergyAGphotovoltaicmodules,AdvancedEnergyinverters,

Schletter ground mounting systems, and DECK Monitoring systems for the Town of Amhersts Solar

EnergyProject.DatasheetswithequipmentspecificationsincludingsizeareincludedinAppendixB.To

ensurethisequipmentarrivesontimeandundamaged,BoschSolarutilizesthefollowingprocess:

1. DevelopPurchaseOrder: Purchasingreviews final designplansand developsa purchase orderbasedontherequestedequipment.

2. PurchaseOrder Verification: The purchase orderis sent tothe Project Manager in charge ofconstructionforsign-offandverificationofequipment.

3. EquipmentDelivery

4. ReviewPackingSlips:UpondeliveryofequipmentBoschwillreviewthepackingslipandcountequipmenttoensurethequantitiesonthepackingslipmatchwhathasbeendelivered.

5. ConsultwithManufacturer:Ifthequantitiesdelivereddonotmatchthepackingslip,BoschSolarwillcallthemanufacturerpriortosigningoffonthepackingslip,toverifywhatwasshipped

basedontheirrecords.

6. ConsultwithShippingCompany:Ifthemanufacturerverifiesthatthequantitiesshippeddonotmatchthequantitydelivered,Boschwillrefusetoaccepttheshipmentandfileaclaimwiththe

shippingcompany.

7. Inspection for physicaldamage: If the quantities delivered do match the packing slip, Boschinspectsallboxestoensurethereisnophysicaldamage.Ifexteriorphysicaldamageispresent,

ateammemberopensthepackageandensuretherehasbeennodamagetotheequipment

contained within. If necessary, Bosch will test the equipment at this point to ensure it is in

workingorder.

8. SignoffonPackingSlip:Boschwillsignpackingslip,formallyacceptingdeliveryofequipment.

9. Fillouton-siteMaterialandEquipmentVerificationList:Theemployeewhoacceptsdeliveryfillsout an equipment verification sheet and ensures the QA/QC supervisor has signed off on

delivery.

2.8.2.ConstructionManagementPlan


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BlueWaves EPC subcontractor, Bosch Solar Energy AG acts as the primary point of contact and

accountability,providingongoingcommunicationandcoordinationoftheproject.BoschSolarEnergys

responsibilitiesinclude:

Construct an overall plan for the installation, addressing labor and equipment requirements,safety,andscheduling

Confirmthatthesystemmaintainsroofandstructuralintegrity

Determineallloadingimpactofthearray,wind,snow,etc.priortotheinstallation

Confirmthatthesystemwillhave noadverse impacton anyof theexistingbuildingelectricalsystems

Confer with Electrical Engineeringteam to configure any remaining required electrical designdetails;obtainElectricalProfessionalEngineerstamponfinalplans

Reviewthetariffrequirementsforinterconnectingthephotovoltaicsystemwiththepowergrid;confer with WMECO interconnect personnel to determine whetherfeasibility, impact,and/or

facilitystudieswillbeneeded

IdentifyinsurancerequirementsandensureBoschSolarcompliance

ConferwithAmhersttodeterminehowandwherematerialswillbeunloadedandstoredonsite

ReportinstallationprogresstoAmherstandmakechangestoinstallationscheduleifnecessarytoaccommodatefacilityactivity

Overseewitnesstestingwhenfinalelectricalapprovalisobtained

Conductsystemtrainingforfacilitystaff

Commission the system by demonstrating start-up and shutdown sequences, safetyrequirements,andemergencyprocedures

ObtainapprovalfromAmherstthatthesiteshavebeencleanedtotheirsatisfaction

ObtainAmherstssign-off,withalistofanyitemstoberectifiedorcompleted


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2.9.SystemInstallationSchedule

2.9.1.ProjectManagement

Theprojectteamtakesgreat pridein theirwork,whichis evidencedby thesuperiorcraftsmanshipofevery Bosch Solar Energy installation. Team employees are among the most skilled and talented

professionalsintheindustry.Frominceptiontocompletion,BoschSolarEnergysprojectsarehandled

byhighlytraineddesigners,engineers,analysts,projectmanagers,andtechnicianstoensurethehighest

quality.

Each member of the Bosch project team knows their role and what they are responsible for. The

Regional Director acts as the primary point of contact and accountability, providing ongoing

communication andcoordinationof theproject.TheOperationsManagercoordinatesandsubmits all

paperwork associated withthe project. TheProject Managercoordinates labor andmaterial logistics.

TheSeniorTechnicianistheliaisonbetweentheProjectManagerandtheinstallationcrew.

2.9.2.Scheduling

The BlueWave team recognizes the necessity of successfully implementing projects that meet our

customers desired timeline. We also understand the importance of minimal disruption to the daily

operationsofafacility.TheteamwillworkdirectlywithAmherstofficialsandsitemanagerstocreatea

detailedschedulestartingfromthedatethecontractissignedthroughinstallationandcommissioning,

includingmilestonessuchasexpectedpermitprocurementandequipmentdelivery,andadheretothat

schedule. Any testing that requires a shut-down of the electrical system of the facility will be


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coordinatedwellinadvancewiththeappropriatefacilitiesmanagerinordertominimizeinterruptionof

facilityoperations.

2.9.3.Security

BlueWaveand Bosch understandthe unique security requirements associatedwith workingon public

facilities. Our installation teams have received and complied with security clearance procedures formilitarybases,airports,andschools.Boschwillseekoutandcomplywithtownandsite-specificsecurity

requirements as defined by Amherst officials and site managers. All Bosch applicants undergo

backgroundchecksbeforebecomingemployees.

Boschwillalsoberesponsibleformaintainingthesecurityofthesystemequipment.Inconsultationwith

Amherst officials Bosch will determine the best means of securing the solar modules, inverters, and

balance-of-systemcomponentstopreventtheftorvandalism.

Base security plan features the installation of 6 fencing around the array. If additional security is

required, Bosch is able to incorporate, at additional cost, security systems such as fence-cut wires,

string-levelmonitoringwhichcandetectmoduletheft,lightingandvideocameras.

2.9.4.Safety

BlueWaveandBoschrecognizesafetyasanissueofpremierimportance.Therefore,Boschemployees

undergo rigorous safety training to ensure constant awareness of potential hazards and necessary

precautions.It is Bosch company policy that all installers as wellas subcontractors completethe

Occupational Safety and Health Administration (OSHA) 10-hour course prior to working on a job

site.Boschemploysafull-timeDirectorofSafetyandTrainingwhoregularlyconductsOSHAtrainingsfor

a variety of skills required to install solar energy systems. Subcontractors are required to follow the

samestrictsafetyrequirementsasBoschemployees.TheSafetyDirectorandon-siteProjectManager

areresponsible forensuringall Bosch employees andsubcontractorshavehad thenecessarytraining

andcarrytheirOSHAcardsonthejobsiteasrequired.

TheProjectManagerandSeniorTechnicianwillberesponsibleforensuringallsafetyproceduresarefollowedaccordingly.Inordertoensurethatthesestandardsafetypracticesarecarriedout,theSafety

Directorandmembersofhisteamconductrandomandunannouncedsafetyauditsofinstallationsites.

Theauditorchecksforseveralitems,including:

Crewinformedofunsafeareas/conditions Crewinformedoffirstaid/eyewashstations Workareahasadequatelighting Toolsinpropercondition Properwarningsignsandlabelsposted AtleastonepersontrainedinCPR/FirstAid

Ifany oftheseitemsarefoundto besubstandard,demeritsare given totheoffender,and correctiveactionsaretaken.

Bosch will work with the facility representative and other decision makers to develop a site-specific

SafetyAwarenessPlangearedtowardskeepingbuildingresidentsandBoschemployeessafe.TheSafety

Planwilladdressstandardsafetyissues,aswellassite-specificconcernspresentedbythesitedecision

makers.


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2.10.CommissioningOurteamconductsadetailedtestingandcommissioningforeverysystemitinstalls.Theteamconducts

thecommissioningwithaclientrepresentativepresent.Thecommissioningprocesshasbeenhonedand

perfected to include notation of all system component information, detailed electrical checkout,

thorougharrayperformanceassessment,andafinalwalkthrough.Thismethodensuresthequalityand

reliabilityofthesystems,andaninformedclient.

Commissioningbeginswiththenotationofallsystem-relatedinformation,including:

Sourcecircuitfusedcombinerboxes DCdisconnectswitch(es)andACdisconnectswitch(es)(includingfusetypesandrating) kWhmeter Inverterinformation(manufacturerandmodel,includingserialnumber)includingchecking

correctpolarityatconnectionsandproperDCEGECconnectionstoGroundingElectrode

Alldataacquisitionsysteminformation(includingconfirmationofNetworkconnection,functions,serialnumbers)

Upon completely noting this information and performing these basic system checks, the technicianconductsathoroughelectricalcheckout.Thiselectricalcheckoutincludes:

MegOhmreadingsofeachlinetovariousdisconnectsateachcomponent VerificationofproperACvoltageattheACdisconnectfromLinetoLine,LinetoNeutral,and

correctPhaseRotation

TestofDCsourcecircuitsbetweenthecombinerandeachstring Notationofopencircuitvoltages(VOCdc)atthecombiner(lookingforopensandreverse

polarity)

NotationoftheMaxPowerPointCurrent(IMPdc)atthefusedcombiner(lookingforbalancedoutput)

AssessmentoftheDCandACcircuitsattheMaxPowerPointatavailablecombiners,LineAmps

UsingInverteroutputreading,DASpowerreading,Handheldmeasurements,weverifyfeedingsbetweeninverters,theDASandusingHandheldinstrumentstoperformathree-way

confirmationofelectricalreadings

ThetechnicianwilltesttheinvertertoensurethatitperformsaccordancewithUL1741anti-islandingtest

Throughoutthischeckout,theCommissioningTechnicianalsoinspectsthesysteminstallationtoensureworkmanshipwasaccomplishedinaccordancewithcurrentNationalElectricCode(NEC),

andlocalbuildingcodes.Thisinspectionincludesphotosanddocumentationoftheentire

systemsandcomponents

Afterthedetailedelectricalcheckout,arrayperformanceisassessedforeachinverterinthesystem.

Informationnotedand/orcalculatedincludes:

Modulemanufacturerandquantity Numberperstring Numberofstrings Orientation Tiltangle PoweratSTC PeakDCpowerrating


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ModuleirradianceatSTC Irradiancemeasurementstodetermineperformancecalculations ModuletemperatureatSTC Modulecelltemperatureattimeoftest Moduletemperatureofcoefficientpoweraspublishedbymanufacturer Modulecelltemperaturefactor Systemde-ratefactorconfirmationofPVWatts(confirmedcalculationonsite:mismatch,

inverterefficiency,soiling,wiringlosses,etc.)

Predictedsystemperformance ActualACoutputmeasuredonsiteversussystemperformancepredictedbyPVWattsand

Manufacturersspecificationstovalidateactualperformanceiswithin10%ofpredicted

Oncecommissioningiscompleted,thepaperworkissubmittedtotheutilitycompany.Afterreceiptof

permission to interconnect by the utility company is received, the technician will be dispatched to

energizethesystemandperformafinalwalkthroughwiththecustomer.Thisassessmentaddressesthe

following:

Disconnectsareleftintheonposition Lockouttagsareremoved kWhmetersareworking Monitoringsystemisreceivingdata LCDdisplaysareoperational

Atechniciannotesanyproblemsthatneedtobeaddressed,providesanyapplicablerecommendations

forimprovementin theinstallation, andnotes comments fromthe client.After thesystemhas been

energized,Boschwillscheduleatrainingclassforcustomeremployeesandcoveroperationanddetails

of their system.At that time manuals for all of the parts and components will be provided to the

customer. Subsequent to the final commissioning walk through, Bosch dispatches an independent

technicianorengineertoconductaQualityAssuranceInspection.

2.11.NamingRightsWhileBlueWaveCapitalhasentitledtheprojectAmherstSolarProjectforpurposesofthisproposal,the

TownofAmherstwillretainnamingrightstotheproject.ShouldtheTowndesireadifferentnamewith

regional, historic, or community interest, BlueWave Capital supports that effort and will market the

projectaccordingly.AstheAmherstSolarProjectisaninnovativeapplicationoflanduseandalsoan

innovativeuseofsolarenergy,weanticipatethattheprojectwillreceivewidespreadmediaattention

locallyandnationally.

2.12.DecommissioningBlueWave intends that this projectwillremainat the site for atleast 30years and potentially for a

longerperiodoftime.PVmodulesinJapanhavebeendocumentedtobeoperatingreliably50years

afterinstallation.However,aswithanycommercialventure,adecommissioningplanisrequired.

AttheconclusionofthePowerPurchaseAgreement,iftheTownhasnotexerciseditsbuyoutoptions,

andiftheTownwishesthatthesolarenergyfacilityberemovedasopposedtoextendingthePower

PurchaseAgreement,thenwewillscheduleadecommissioningandremovethesystemwithin150days

ofthedateofdiscontinuedoperations.Thedecommissioningshallconsistof:


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A) Physicalremovalofallsolarstructures,equipment,securitybarriersandtransmissionlinesfromthesite

B) Stabilizationorre-vegetationofthesiteasnecessarytominimizeerosionC) Therestorationofthesolarfacilitysitetothestateitwasinbeforethefacilitywasconstructed

Basedon decommissioningof pastprojects, itis reasonableto assumethatPV modulesandinverters

canbesoldforre-useataprofitandthatwire(copper)andmountinghardware(aluminumandsteel)

canberecycledforprofitaswell.TypicalsalvagevalueassignedtoPVsystemequipmentattheendof

its useful life is 10-20% of initial installed value, which more than adequately covers the cost of

decommissioning.For these reasons,and thelikelihoodthatthe solar PVgeneratingfacility willhave

manymoreyearsofusefullifeattheendofthecontractperiod,wedonotbelievethattheaddedcost

offinancialassurance,whichwouldbereflectedinahigherelectricitycosttotheTown,isnecessary.If

thesystemhasnotbeenremovedwithin150daysfollowingthedateofdiscontinuedoperations,then

theTownshallhaveauthoritytophysicallyremovethefacilityanddisposeofitatitsowndiscretion.

Decommissioningandsiterestorationwillincludedismantlingandremovalofallpanelsandsupporting

equipment, transformers, overhead and underground cables, foundations, buildings and ancillaryequipmentdowntothedepthofthelandfillcap,andremovalofsurfaceroadmaterialandrestoration

of the roads and module sites to substantially the same physical condition that existed immediately

beforeconstructionofthecommercialsolarfacility.Totheextentpossible,thesitewillberestoredand

reclaimed to the topography and topsoil quality that existed just prior to the beginning of the

constructionofthecommercialsolarenergyfacility.Disturbedearthwillbegradedandreseeded,unless

theTownrequeststhattheaccessroadsorotherlandsurfaceareasberetained.

BlueWavewelcomesdiscussiononthefateoftheprojectafterthe30-yearleaseandPPAterm.Inmost

cases projects are decommissioned as mentioned above. However, should the Town of Amherst be

interested inowning the project atthe end ofthe term, our financial partner isopento selling the

projecttotheTownatasubstantiallydiscountedmarketrate.


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3.TECHNICALDETAILS

3.1.InterconnectionBlueWave will be responsible for working with WMECO to apply for and receive interconnection

approval for each photovoltaic system we construct.Our team members have attended utility

interconnect training sessionsand seminarstoremaincurrentwith state andutility rules. PleaseseeAppendixGforacopyoftheWMECOInterconnectionApplication.

Interconnection tariffs vary by state and by individual utility; Bosch has a team of specialists for

MassachusettsthatwillworkwithWMECOandtheCommonwealthsenergyregulatorstosuccessfully

interconnect the photovoltaic system we design and install.Bosch Operations teams have attended

utilityinterconnect training sessionsand seminarsto remain currentregardingMassachusettsenergy

andutilityrules.

ThefollowingarethemilestonesoftheInterconnectionProcess:

ElectricalDesignTeamengineerswillcreateanElectricalDiagram(usuallya1-linediagram)thatsetsforthallthemajorsystemcomponentsandhowtheyaretobewiredtogethertoform

thePV system. TheElectricalDiagram alsoshows how thesystem willinterconnect withthe

powergrid.

InterconnectApplication TheOperationsManagerintheappropriatestateofficewillgeneratetheInterconnectApplication.TheInterconnectingCustomerwillhavetosigntheapplication,

andtheOperationsManagerwillsubmitthepackage,withpaymentfortheinterconnectfee

(basedonPVsystemDCwattage).

InterconnectReviewTheOperationsManagerwillfollowtheapplicationasitisreceivedandreviewed by the utilitys Distributed Generation (DG) team. The Operations Manager will

answer the utilitys questions, bringing in the Engineering team as needed for complex or

unusual interconnection situations.With many years of interconnection experience, our

OperationsManagershavedevelopedexcellentworkingrelationshipswiththeutilityDGteams,allowingfortimelyinterconnectionapprovalandquickresolutionofanytechnicalissues.

ApprovaltoConstruct OnceWMECOhascompleteditsreviewandhasfoundtheinterconnectdesigntobeacceptabletheywillissueanApprovaltoConstructletter.Withthisapprovalin

place,thephotovoltaicsystemisinstalledandinterconnectedtothelocalutility.

SystemTestOncetheoverallphotovoltaicsystemhasbeeninspectedandapprovedbythelocalinspectors(AuthorityHavingJurisdiction-AHJ),Theteamteststhesolarenergysystem

anditsDataAcquisitionSystem(DAS)toverifyproperoperationandperformance.Thistesting

followsa specific internalqualityassuranceprocedure, overseen bythe BoschQualityControl

team.

Certificate of Completion/Utility Witness Test Following local electrical approval, theOperations Manager will send WMECO a Certificate of Completion and request a utility

inspectionandwitnesstest.Autility inspectorwillcometothe siteand verifythatthesystem

has been installed per the Electrical Diagram and that the utilitys PV Disconnect Switch is

properly installed.Then the inspector will witness a system anti-islanding test, where the

invertersareisolatedfromthepowergrid,simulatingapoweroutage.Theinspectorwillverify

thatallinvertersdeactivateandreactivateinaccordancewithUL1741andIEEE1547standards.

When the inspector is satisfied that the photovoltaic system has met all WMECO safety


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requirements,he/shewilladvisetheBoschProjectManagerinformallythatthesystemmaybe

runcontinuously, interconnected to thepower grid.Boschwill then receivethe utilitys Final

Approval letter, which is the formal documentation that the PV system has passed utility

inspection.

Bosch will apply to WMECO to interconnect the project under either the Expedited or the Standard

InterconnectionProcess:

ExpeditedProcess

TheexpectedtimelinefortheExpeditedProcessisasfollows:

BoschsubmitsacompletedinterconnectionapplicationtoWMECO. Within25daysofreceiptofthecompletedapplication,WMECOwillreviewtheapplicationand

notifyBoschof anystudiesthatmustbe done beforeconstruction.If nostudies arerequired,

WMECOwillgrantBoschapprovaltoconstructthesystem.

Theentireprocesstakesamaximumof40daysunlessastudyisrequired. IfWMECOdeterminesthatastudymustbeconducted,WMECOhas20daystocompleteits

study.

Themaximumallottedtimebetweenthefilingofaninterconnectionapplicationandreceiptofapprovaltoconstructis60days.

StandardInterconnectionProcess

While,basedonpreliminarydiscussionswithWMECOofficials,BlueWaveanticipatesbeingabletotake

advantageoftheExpeditedProcess,ifWMECOdeterminesthattheprojectmeetsanyofthefollowing

circumstances,theprojectrequirestheuseoftheStandardInterconnectionProcess:

Theprojectcontributesexcessivefaultcurrent TheprojectwillnegativelyimpactWMECOsstability Theprojectexceeds7.5%ofthetotalloadontheline

TheexpectedtimelinefortheStandardInterconnectionProcessisasfollows:

Within10daysWMECOwillreviewtheapplication Within30daysascopingmeetingwillbeheldtodeterminewhatstudiesneedtobeperformed Within 55 days WMECO and BlueWave will enterinto a study agreement and complete the

requiredstudies

IfupgradestoWMECOssystemarerequired,WMECOhas30daysto determinethetypeandcostofthoseupgrades

Fromthedaytheinterconnectionapplicationisreceivedtocompletion,thetotalprocessmaytakeamaximumof150days (125daysifnoupgradesarerequired)

OnceWMECOgrantsBlueWavetheApprovaltoConstruct,thephotovoltaicsystemwillbeinstalledand

interconnected.Thelaststepsoftheinterconnectionprocessincludeaninspectionbylocalbuilding


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authorities,asystemtestconductedbymembersoftheBlueWaveteam,andanon-siteUtilityWitness

Test.

3.2.ElectricalDesignBoschhascompletedaninitialelectricaldesignforthisproject.Apreliminaryone-linediagramfortwo

ofthethreephasesofthesystemareincludedinbelowinFigure3.8.5x11scaleversionoftheone-line

diagramsareincludedinAppendixA. Boschhas consultedwithWMECO,whoadvisedthatold landfill

stationwouldbeupgradedtoRateScheduleG-2withtheadditionofthe4.75MWPVfacility.Theone

linediagramreflectsthis.

Theprojectconsistsof20,664Boschs-Si230WPVmodules.Pairsofthesemoduleswillbeconnectedin

series strings. Groups of 28 strings will be connected in parallel through combiner boxes. These

combinerboxeswillultimatelybeconnectedtooneinverterlocation.

Theinverterstationscontain2xor3xAdvancedEnergySolaron500500kWinverters,whichconvertthe

DC output of the PV modules to AC power at 480V. The inverter pair will connect in parallel to a

padmountedtransformer.Thiswillconnectinparalleltotheexistingtransformerservingthetransfer

station.

Theteamwillinstalla PowerDistributionPanel(PDP)whichwillhousedisconnectswitchesforthePV

systemandthe transfer stationallowingWMECOto safelyand reliably performmaintenanceon their

systemandthetransferstation.


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Figure3:OneLineElectricalDiagrams


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3.3.NetMeteringTheTownofAmherstsSolarEnergyProjectwillnetmeteraccordingtotheregulationssetforthinthe

DepartmentofPublicUtilitiesregulation220CMR18.00.Becausetheprojectwillbenetmetered,the

AdditionalInformationforNetMeteringApplicationwillhavetobesubmitted(seeAppendixGforthis

applicationform).BlueWaveisfamiliarwiththisprocessandforeseesnocomplicationswithobtaining

interconnectionandnetmeteringagreements.WMECOsNetMeteringRulesandTariffinformationcan

befoundinAppendicesHandI.

3.4.EquipmentSuppliers

BlueWavehaschosenhigh-qualityproductsfortheproposedsites.Foreachsystem,ourteamproposes

usingBoschSolarEnergyAGphotovoltaicmodules,AdvancedEnergyinverters,andaDECKMonitoring

datamonitoringsystem.EveryBoschSolarEnergymoduleisrigorouslytestedtoensureazeronegative-

powertolerance,andcomeswitha25-yearwarranty. AdvancedEnergyinvertersareideallysuitedforlarge commercial and utility-scale installations, featuring an industry-leading California Energy

Commission efficiency rating of 97.5%. DECK Monitoring is a leading provider of critical monitoring

servicesfor therenewableenergyindustry,enablingreal-time data tobeviewed24hoursperdayon

theDECKMonitoringwebsite.

Ourteamproposesaballastedgroundmountingsystemfortheprojectsite.Theteamplanstousethe

Schletter orHilti ballasted fixed-tiltmounting system. Thissystemavoidspenetratingthe installation

surface,whilemaintainingtheintegrityandsecurityofthearray.Manufacturerspecificationsheetsare

includedinAppendixB.

3.4.1.Modules

BoschSolarEnergysuppliesphotovoltaicmodulesbasedonhigh-efficiencymono-andmulti-crystalline

siliconsolarcellsinthesize156mmx156mm.Thesemodulesofferhighefficiencyandexcellentvalue

formoney. BoschSolarEnergyhas international acceptanceas a bankableutility-scalemodulewith


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world-classproduction facilities to deliverlarge suppliesof modules on-time. Bosch modules provide

verygoodbalancebetweencost,performance,andlongevity.

BlueWavescustomizedequipmentselectionconsideredlow-costalternativepanels,aswellashighest-

efficiencypremiumpanels.BlueWaveproposesBoschSolarAGmodulesforthefollowingreasons:

Zeronegativepowertolerance o Everymoduleisguaranteedtoproduce230watts(DC)orgreatero Mostmanufacturersoffera+/-3-5%powertolerance,whichmeansthatasystemcould

begetting3%-5%lesspoweronaverage

LargePVmanufacturerthatispartofoneofthelargestindustrialcompaniesintheworld o BoschAGis125yearoldcompanywithaworldclassbalancesheet

CommittedtoUSmarketo BoschmanufacturesitscrystallinemodulesintheUSo Boschprovidestimelytechsupport,warrantyclaims,andmodulesupply

TopTierManufacturer

o Boschmodulesaredeployedinsomeofthelargestarraysintheworldo Boschisaverticallyintegratedmanufacturercommittedtocontinuousinnovation

Industry-leadingpowerwarranty o 10-yearproductwarrantyo 25-yearperformanceguarantee(90%atyear10;85%atyear18;80%atyear25)o Provideslong-termprotectionagainstprematuredegradation

3.4.2.Inverters

The Advanced Energy Solaron photovoltaic inverters are ideally suited for utility-scale or large

commercialphotovoltaicinstallations.Inadditiontohigh-powerandhigh-efficiencytechnology,this

inverteroffersadvancedmonitoringandcontrolcapabilities.Foundedin1981,AEIcontinuallypursues

profitable positions in new markets through strategic relationships, as well as through proprietary

developmentofcoretechnologiesthatfurtherstrengthenthecompanyspositioninprocess-critical,

highlyscalable,patentedtechnologies.

AdvancedEnergyisagloballeaderininnovativepowerandcontroltechnologiesforhigh-growth,thin-

filmmanufacturing,andsolarpowergeneration.Specifically,AEItargetssolargrid-tieinverters,solar

cells, semiconductors, flat panel displays, data storage products, architectural glass, and otheradvanced product applications. AEIs product portfolio includes precise, flexible electrical power

systems,reliablegasandliquidflow-managementsystems,accuratethermalinstruments,andglobal

support services. Leveraging this focused product portfolio and technology leadership, AEI creates

solutionsaimedatmaximizingprocessimpact,improvingproductivity,andloweringcostofownership

for its customers, including original equipment manufacturers (OEMs) and end users around the

world.


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AEIoperatesinregionalcentersinNorthAmerica,AsiaandEuropeandoffersglobalsalesandsupport

through direct offices, representatives, and distributors. AEIs factory in Shenzhen, China is fully

operationalandwellpositionedforcontinuousimprovementtoincreasecapabilityandcapacity.

Best-in-ClassPerformanceo 250kW,333kW,500kWat480VAC,3o Industry-leadingCECefficiencyratingof97.5%andpeakefficiencyof98.2% highestin

NorthAmerica

o Robust,transformerlessarchitecturewithbipolarPVarrayconfiguration(600V)o Polymerfilmcapacitorforhigherreliability

CompactandErgonomico Smallestfootprinto Lowestweighto Operatingtemperature:-35Cto50Co Quietoperation:79dBatonemeter

Advanced,IntegratedCommunicationso Interface:LCDdisplaywithhardandsoftlock-outso Communications:IntegratedMoxaserverwith1GBofstorageo Remoteaccess:system-integratedorthird-partycompatible

UL1741-2005;NEC690+;IEEE519/929/1547

Nearlythreedecadesofexperienceinthesolarindustry

24hoursperday,365daysperyearglobalserviceandsupport

3.4.3.MountingSystem

BlueWaveproposestheSchletterFreeField(FF)BallastedRackingSystem.Schletterisaglobal,privately

ownedcompanywithastrongreputationforqualityproductsandservices.Thisrackingsystemenables

quickassemblyofsupportingstructuresforphotovoltaicpanels.

Withonlysixmatchedcomponentsrequiredforthebasicmountingstructure,aswellaspre-assembled

connectors, Schletter mounting systems are quick and efficient to install. This mounting system is


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lightweightanddesignedforusewiththemostpopulartypesofphotovoltaicpanels.Schletterracking

systemsareadaptabletodifferentfoundationtypes,andthereforethebestchoiceforanyinstallation.

Easyinstallationonlysixcomponentsrequiredforthebasicmountingstructure

Veryeasyandfastsetupthankstouseofpre-assembledconnectors

Lightweightandcomfortabletoassemble

Intuitiveandeasytoinstallconnectionparts3.5.Operations&MaintenancePlanOperator will be responsible for Operations and Maintenance for the proposed sites. Bosch

is

successfully servingthisfunction fornumerous facilitiesat other sites aroundthe world. Photovoltaic

systemshaveverylimitedroutinemaintenancerequirements,astherearefewmovingpartstobreak,

althoughitisadvisablethatavisualinspectionoccursonanannualbasis.

Throughmonitoringandproactivemaintenanceofaphotovoltaic(PV)system,Boschcanmaximizethe

uptimeofanarray,helpavoidunexpectedoperatingandmaintenancecosts,andenablethesystemto

achievethelowestlife-cyclecost($/MWh)forsolargeneration.Withdecadesofexperienceinbuilding

and operating PV systems, Bosch has the expertise, knowledge, and trained technicians to provide

comprehensiveandfull-servicemaintenanceforPVsystems.

Maintenanceandrepairsofthefacilitycanbedonewhiletheplantisnotproducingpowerintheearly

morningand early evening. Additionally,individual sectionsof theplant canbe taken offlinefor any

otherneededrepairs,withnegligibleimpact onplantoutput. Inthe sectionsbelow, wedescribethe

fourkeyelementsofourOperationsandMaintenanceProgram:

3.5.1SolarArrayOperationsandMaintenanceProgram:

Visual inspection of arraysgeneral site conditions,PV arrays, electrical equipment, mountingstructure, fence, shading, trackers, vegetation, animal damage, erosion, corrosion, and

discoloredpanels.1xperyear VisualinspectionandcorrectionofSPSforlooseelectricalconnectionsandgroundconnections.

1xperyear

String level open circuit voltage,DC operating current tests, and I-V curve traces on 25% ofstrings.1xperyear

Switchesanddisconnectstesttoensuretheyarenotjammed.1xperyear Sensorsandmeters,includingpyranometers,anemometers,andtiltsensors:1xperyear

o Recordmeterreadingsasavailable.1xperyearo Turn off and on to ensure they are communicating and ensure battery backups are

working.1xperyear

o Exchange units with Owners spares for calibration per manufacturers instructions.Reportserialnumbersofexchangedunits.CalibrationcostsareNon-coveredServices.

Asneeded.

3.5.2.InverterOperationsandMaintenanceProgram: Servicefor2Solaroninverters:

o Replace filters, check pressure gauges (address as necessary), check MOVs, thermalimaging (address connections and hot spots), inspect DC fans (replace as necessary),


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inspectweatherstripping(replaceasnecessary),inspectACcontactor(replacepartsas

necessary),andcleanlargeheatexchangeron333kW. 1xperyear

o Clean large heat exchanger on 500 kW, replace fans, inspect small heat exchanger.Every5years

o ReplaceMOXAboxandreplaceblower.Every10years Include99%uptimeguaranteeforSolaroninverters.Specificdetailsperseparateagreementby

referenceonrequest.

Cleardebriswithin thefencedarea. Ifthisactivitybecomesexcessive, Owner andContractorwillagreeuponamethodtohavethisworkperformedasNon-coveredServices.1xperyear

Writtenservicereportwithin10days:o Include details of preventive maintenance work, such as meter readings, thermal

images,andsystemtestingresults.1xperyear

o Includenon-conformancereportstoidentifypotentialshort-termandlong-termpowerproductionissues.1xperyear

3.5.3.ServiceSupport Contractorwillmakeavailablea24x7x365TechnicalSupport.Ongoing Dispatch commitment: dispatch resources in response to alarms and alerts/service requests

receivedbyContractorfromOwner.TobebilledonT&Mbasiswhenrequestmade.

3.5.4.On-siteRequestandIssueResolution

Issueresolution:AfterBoschorsubcontractorarrivesonsiteinresponsetoarequestreceivedfrom Owner, Bosch or subcontractor will follow protocols below depending on the

circumstancescausingtherequest:

o Solaroninverterevent:repairSolaron.ThereisnochargeifSolaroninverterisunderAEwarranty.Ifoutof warranty,thenapplyT&Mfees.IssueisresolvedwhentheSolaron

inverterisavailable.Uponoccurrence

o Eventthatiscoveredbyinsurance:BoschreportssituationtoOwner.ApplyT&Mfeesfor the site visit. Issue is resolved when Bosch reports the event and diagnosis to

Owner.Uponoccurrence

o Event that Bosch is pre-authorized to repair: Examples include fuse replacement,terminal block replacement, motor replacement (up to 1.5 hp), single wire issue

betweenmoduleandcombinerbox.Boschcompletesrepairuptothedollarlimitof

stipulatedin1.2b.ApplyT&Mfees.IssueisresolvedwhenBoschcompletestherepair.

Uponoccurrence

oEvent that Bosch cannot repair without prior authorization from Owner: Examplesincludecomplexgroundwiringissues,groundfaultresolution,solarpanelreplacement,

andmajorcomponentreplacement.ApplyT&Mfeesforthesitevisit.Issueisresolved

whenBoschreportstheeventanddiagnosistoOwner. Uponoccurrence

Intheeventofanalarm,alert,orservicerequest,Boschwilldispatchresourceswithintwobusiness

days.Withinthirtydaysofperforminganymaintenanceservice,Boschwillprovidethefacilitymanager

withawrittenmaintenancereport.


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4.FINANCINGPLAN

4.1.Overview

TheBlueWaveCapitalprojectteamanditspartnershavea well-establishedfinancingtrackrecordfor

solar PV projects, with direct experience executing project finance transactions for several dozen

projectsinMassachusettsandacrossthecountry.BlueWaveCapitalwillarrangeconstructionfinancing

through Bosch Solar Energy AG, its EPC partner. Construction financing will be secured through the

Boschbalancesheet.Take-outoftheprojectwilloccurat commercialoperationandwillincludeboth

equityandlong-termdebt.

EachmemberoftheBlueWaveteamhasthenecessaryfinancialresourcestoundertaketheirrespective

obligationsunderthisproposalandtobacktheirworkwithcreditguaranteesandwarrantiesconsistent

withindustrystandards.Ifthe BlueWaveteamisselectedtoenterintonegotiationswiththeTownof

Amherst,ourteamwillengageSmartEnergyCapitalasthelong-termownerandoperatorofthesystem.

Asthelong-termowner/operatoroftheprojects,SmartEnergyCapitalwillarrangelong-termproject

financing, including both equity and debt. Financing terms and the ultimate capital structure of the

projectwilldependonprevailingmarketratesatthetimetheprojectisfinanced.

Asprivatelyheldcompanies,BlueWaveCapital,SmartEnergyCapital,andTighe&Bond,donotpublish

financialstatements.BoschSolarEnergyAG,theteamsEngineering,Procurement&Construction(EPC)

partnerisoneoftheworldslargestindustrialconglomerateswithover270,000employeesworldwide

andover$40billioninworldwidesales.TRCSolutionsisapubliclytraded(NYSE:TRR),Massachusetts

basedengineering,consultingandconstructionmanagementfirmprovidingintegratedservicestothe

energy, environmental and infrastructure markets nationwide with over 2,400 professionals and 70

offices throughout the United States. Appendix K includes a summary of Bosch AGs most recently

availablefinancialstatements.SmartEnergyCapitalhascapitalcommitmentsof$180millionfromDuke

EnergyServices andIntegrys forthe developmentof solar photovoltaic projects in theUnited States.

AppendixOcontainsaletterofinterestfromSmartEnergyCapitalforthisprojectaswellasapress

releasefromDukeEnergyServicesandIntegrysannouncingtheircapitalcommitmenttoSmartEnergy

Capital.

The Town of Amherst Solar Project, will qualify for a 30% investment tax credit from the federal

government,oranequivalentcashgrantfromtheDepartmentoftheTreasuryunderprovisionsofthe

AmericanReinvestmentandRecoveryAct(ARRA).ThiscashgrantallowstheBlueWaveCapitalteamto

assumelowercostfinancingoptionswhichwouldbereflectedinasomewhatlowerelectricitypricefor

Amherstthanassumedinthisproposal.

Anadditionalfactorthatimprovestheprojectteamsabilitytofinancetheprojectisthevalueofthe

SolarRenewableEnergyCertificates(SRECs)asdiscussedearlierinthisproposal.Bylimitingtheproject

tolessthan6MWasperDOERregulations,theprojectqualifiesforSRECs.UnderDOERregulations,a

projectoflargersizewouldreceiveClassIRenewableEnergyCredits,whichtradeatalowervalueper

kWhthanSRECsgiventheirlackofapricesupportmechanismsuchastheoneestablishedforSRECsbytheDOER.BylimitingthesizeoftheTownofAmherstprojectandsecuringSRECs,BlueWaveCapitalhas

helpedensurethefinancialviabilityoftheproject.

4.2.SubsidiesBlueWave Capital intends to utilize the following federal incentives to finance the Amherst solar

photovoltaicproject.PrivatesectorparticipationinthisprojectsignificantlybenefitsAmherst,whichby

itselfitwouldnototherwisebeabletomonetizethesetaxcreditsanddepreciationbenefits.


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FederalInvestmentTaxCredit:The creditorgrantisequalto 30%ofexpenditures,withnomaximum

creditforeligiblesolarenergyproperty, whichincludes equipmentthatusessolarenergytogenerate

electricity. The credit is available for projects completed through December 31, 2016, and may be

carried forward for 20 years if the value of the credit exceeds the entitys tax liability. BlueWaveis

certainthattheAmherstprojectwillreceivethisincentive.

Modified Accelerate Cost Recovery System MACRS Depreciation: Under the Federal ModifiedAccelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property

through depreciation deductions. The MACRS establishes a set of class lives for various types of

property,rangingfrom3to50years,overwhichthepropertymaybedepreciated.SolarEnergySystems

areclassifiedasafive-yearpropertyundertheMACRS,andarethusfullydepreciatedforfederalincome

taxpurposeswithinfiveyearsoftheircommissioning.UnderMACRS,PVsystemsplacedinserviceafter

1986areeligibleforthedepreciationscheduleshowninTable2below.BlueWaveiscertainthatthe

projectwillreceivethisincentive.

Therecentlyenacted2010TaxActfor100%bonusdepreciationforpropertyacquiredandplacedin

service after September 8, 2010 (i.e., not the date of enactment, or next year, like you might have

expected) and before 2012, and 50% for 2012. Under this new accounting rule, if the Old Landfill

photovoltaicsystemiscompletedduringthe2011calendaryear,100%oftheassetwillbedepreciable

duringitsfirstyearofoperations.Ifthephotovoltaicsystemgoesinserviceduring2012,the50%Bonus

Depreciation rule will apply. Wehaveassumedforthisproposal that thephotovoltaicsystem willbe

commissionedduringcalendaryear2011.

Table2:MACRSDepreciationSchedule

Grantsand Rebates: Thisproposaldoesnot assumegrantfunding fortheproject becoming available.

Nevertheless,webelievethatwemaybeabletosecurecertainstateandfederalbrownfieldsfundsand

federalloanguarantees.We willmakeeveryefforttodo soand,if successful,thebenefitsof allsuch

publicsupportwillbefullypassedontoAmherstintheformoffurtherelectricitycostreductions.

4.3.IncentivePaymentsTheMassachusettsDepartmentofEnergyResources(DOER)recentlyapprovedaSolarCarve-Outthat

effectivelycreatesaSolarRenewableEnergyCertificate(SREC)marketthatbeganoperatinginJanuary

2010. This Solar Carve-Out is specificallydesigned to facilitate thedevelopment of solar photovoltaic

(PV) energy and mandates that a certain percentage of the states total electricity supply must be

providedbysolarPV.Thispercentageisdesignedtoincreaseeachyearuntil400megawatts(MW)ofPV

are installed, providing approximately 1% of the states total electricity supply. The text of

MassachusettsRenewablePortfolioStandardcanbefoundinAppendixO.

As part of this effort,the state has implementedthe MA Solar Credit Clearinghouse as a last resort,

fixed-priceauctioninthelastquarterofeachyearwithafixedpriceof$300perSREClessa5%fee,


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resultinginafloorpriceof$285.ThisestablishesafloorpriceforMassachusettsSRECsandgivesproject

ownersaminimumvaluetheycanexpectperSREC.

TheRPSSolarCarve-OutisapartofthelargerMassachusettsRenewablePortfolioStandard(RPS)that

wasestablishedinregulationsissuedbytheMassachusettsDepartmentofEnergyResources(DOER)in

2002.Theregulationsrequirethat1%ofthestateselectricitysupplycomefromnewrenewablesources

by2003.Thispercentageincreasesby0.5%eachyearuntilitreaches4%in2009.Following2009,itwillincreaseby1% each year,reaching15% by2020, andcontinuing until theDOERsuspendstheannual

increase.

Solar photovoltaic projects that have received funding from programs administered by the

MassachusettsCleanEnergyCenterorRenewableEnergyTrustpriortothestartdateoftheSolarCarve-

OutProgram(January1,2010)andthosethatreceivedsubstantialfunding(over67%oftotalinstalled

cost) from the American Recovery and Reinvestment Act (ARRA) federal stimulus programs are not

eligibletoparticipateintheSRECprogram.

Given the early stage of development of this compliance market, there are at this point a limited

numberofsystemsthathavebeenqualifiedforparticipationintheSolarCarveOut.ThefirstSRECsin

Massachusettsweresoldduringthesecondquarterof2010.AboutonedozenSRECschangedhandsin

that first transaction. In addition, there presently is only approximately 6.5 MW of qualified solar

photovoltaiccapacitywithinthestateoutofarequired30MWbyYE2010and69MWbyYE2011.A

small fraction of those systems have been installed to date, with the majority of them being small

commercialandresidentialsystems.

TheabilitytomonetizetheseenvironmentalattributesintheformoftradableSRECsmakesitpossible

forBlueWavetooffertheTownof Amherstalong-termpowercontractat apricethatis substantially

lower than its current avoided cost of electricity. Recognizing the nascent nature of this market,

BlueWavehasmadewhatitbelievesareprudentassumptionsregardingthetradingvaluesforthese

SRECs.

Therefore, if BlueWave is able to secure SREC prices that are higher than those we are currently

assuming,wewillsharethoseincreasedprojectrevenueswiththeTownofAmherstintheformofalowerenergypriceoranannualdirectcashpayment-duringtherelevanttermoftheSRECcontract.

5.RESOURCESUPPLY

Animportantfactor indeterminingthe financial viabilityof anyrenewableenergyproject isanalyzing

and clearly understanding the solar energy resource available on site. BlueWave produced solar

resource and production estimates using PV simulation software created and maintained by the

NationalRenewableEnergyLab(NREL).TheSolarAdvisorModel(SAM)programisconfiguredtouse

meteorologicaldatafromthemostsimilarlocationintheNRELTypicalMeteorologicalYear(TMY)2or3

database. BlueWave has generated a 365-day solar resource report using SAM, a comprehensive

meteorologicalreference,incorporatingacatalogueofmeteorologicaldataandcalculationprocedures

forsolarapplicationsandsystemdesignatanydesiredlocationintheworld.Itisbasedondecadesof

research by the NREL in the development of meteorological databases for energy applications.

BlueWavesdetailedproductioncalculationsareincludedinAppendixJ.

Inordertoprovideahigherconfidenceintervalproductionforecast.However,unlikewind,thesolar

resource is much more broadly distributed, predictable, and, by definition, less susceptible to local

variability. For this reason, BlueWave does not expect meaningful deviations from our forecasted

capacityfactor,andcanproceedwithdevelopmentandcontractingonthebasisoftheSAMdata.


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RefertoFigures4and5belowtoseetheaveragesolarresourceprofileavailablefortheAmherstSolar

Project.Thesefiguresshowtheaveragesolarresourceoftheprojectsiteforeachhourofeachmonthof

thecalendaryear.ThedataisbasedonthelatestversionoftheNRELsTypicalMeteorologicalYear

model, TMY3. TheTMY3 model uses thelatest andmost comprehensive setof data available in the

NationalSolarRadiationDataBase(NSRDB).TheTMY3datasetcoversthe1991-2005period.Figure5

shows ourpreliminaryestimatesfor productionout ofourproposed facility. Ourdetailedproduction

forecastsareattac

amherst written response

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