2008 Annual Report

Grant/Loan Application

Alternative Energy Portfolio Standard Study

Alternative Energy Portfolio Standard Study-Executive Summary

Penelec Sustainable Energy Fund Committee

 

The Penelec Sustainable Energy Fund of the Community Foundation for the Alleghenies

The Penelec Sustainable Energy Fund was funded in 2000 as a result of energy deregulation and utility settlement agreements in Pennsylvania. The fund promotes the use of renewable energy, energy conservation and efficiency, and renewable energy business initiatives. The fund may distribute loans and grants and make investments to eligible organizations that are located in or serve First Energy’s Penelec service territory, or it may participate with other Pennsylvania sustainable energy funds in projects throughout the commonwealth.

The purpose of the fund is to promote:

* The development and use of renewable energy and clean energy technologies
* Energy Conservation and Efficiency
* Sustainable Energy Businesses
* Projects which improve the environment in the Penelec region.

The Community Foundation for the Alleghenies in Johnstown, Pennsylvania administers the Penelec component of the Fund, which has assets of approximate $9.1 million. The fund is divided as follows:

- Two thirds (2/3) of the funds will be focused on venture capital and business lending
- One third (1/3) will be an endowment fund focused on environmental grantmaking

Services of the Fund

Venture Capital and Lending Fund - Business Investment Program

Financing is available for businesses that:
Develop sustainable energy technology (e.g. solar panel manufacturing),

  - Use renewable energy in the operation of their business (e.g. using wind power to drive equipment), or
  - Operate a business that enhances energy efficiency and conservation (e.g. recycling).

The fund provides the financial assistance to eligible projects in the form of:

- commercial loans
- subordinated debt
- royalty financing
- equity financing

Endowment Fund - Environmental and Energy Conservation Grantmaking

The endowment fund will provide outright grants to support energy conservation and environmental projects in the region. The funds will be invested in the permanent pool of each foundation, with the earnings used each year for grantmaking. Grants will be awarded on an annual basis to projects that:

- Educate power users about Renewable Energy,
- Educate power users on the importance of energy conservation, energy conservation methods, or
- improve the environment within the FirstEnergy-Penelec service territory.

Renewable Energy Support Program

The Renewable Energy Support Program will invest funds in projects that will generate electric power from renewable energy sources. Equity or lending investments as described in the Venture Capital and Business Lending above will be available for projects that use; wind, solar, biomass, methane, or hydro to generate electricity.

Feasibility Study Grants:

In addition to equity or lending arrangements, the program will provide a limited amount of grant support to determining the feasibility of proposed projects. Feasibility grants will be awarded under the following conditions:

- Grants may be awarded to fund a portion of the total cost of a proposed feasibility study. There will be a limit of $25,000 per project
- Grants may only be used to study the implementation of established or developing technologies. Grants will not be used to develop new technology
- Preference will be given to grants where, if the project proves feasible, the likelihood exists that the Support Program will be an investor

Administrators will meet with interested parties and develop preliminary information on a project. Projects will be subject to preliminary review by a subcommittee of the Advisory Board and may include a site visit. The administrator will present eligible proposals to the Advisory Board for approval.

Please feel free to contact Mike Kane, executive director of The Community Foundation for the Alleghenies, who serves as administrator for the Penelec Service Area, for applications, deadlines, and other information. His email address is mkane@cfalleghenies.org We look forward to hearing from you.