A. An application shall contain at least the information and materials described in §§D through N of this regulation, but an OSW applicant may submit additional information or materials, or both. The Commission in its discretion shall determine whether the information and materials that an OSW applicant provides are sufficiently detailed to satisfy §§D through N of this regulation.
B. If an OSW applicant is unable to provide any of the information or materials described in §§D through N of this regulation at the time it submits an application, the application shall clearly identify information or materials, or both, that it is unable to provide and provide a clear plan that demonstrates how and when the OSW applicant will provide the information or materials, or both, that are unavailable before the close of the application period.
C. An OSW applicant shall submit PIA exemption requests by clearly identifying and marking the relevant portions of its application and providing justification for its PIA exemption request for each instance. An OSW applicant shall certify in its application that it will hold the Commission harmless if the Commission independently determines that one or more portions of an application subject to one or more PIA exemption requests must be disclosed under State Government Article, Title 10, Subtitle 6, Annotated Code of Maryland.
D. All graphs, charts, photographs, or other documents originally produced in color and included in the application shall be produced in color in the original and the copies. The OSW applicant shall comply with other submission requirements posted by the Commission.
E. An application shall include a signed and notarized statement by an officer of the OSW applicant attesting that:
(1) The officer has the authority to submit the application to the Commission;
(2) The application, including the proposed OREC price schedule and proposed OREC amount, shall remain binding until the expiration date;
(3) The information and materials contained in the application are accurate and correct; and
(4) If the application is selected, the OSW applicant will work diligently and engage in a continuous development and construction program to achieve the project COD for the qualified offshore wind project.
F. An application shall include the following information:
(1) An organizational chart that shows:
(a) Complete ownership structure of the proposed project (including all parents, subsidiaries, and other affiliates that have direct or indirect management or voting control over the proposed project); and
(b) Any lenders or entities funding the proposed project, including those entities funding on a contingent basis; and
(c) If different from the proposed project, the relationship between the OSW applicant and the proposed project.
(2) Legal name and type of business organization of each entity listed on the organizational chart described in §F(1)(a) of this regulation, including certificates of formation and certificates of good standing certificated by the relevant governmental authority for each entity and, if applicable, foreign qualification certificates or other evidence that the proposed project and the OSW applicant are qualified to do business in the State;
(3) Bylaws or operating agreement of each entity listed on the organizational chart described in §F(1)(a) of this regulation and relevant board resolution (or equivalent written consent) to submit an application;
(4) Name, title, address, telephone number, email address, and curriculum vitae of each member of the OSW applicantís executive team and project team that will be responsible for the proposed project, demonstrating capability and expertise in, at a minimum, project management, development, financing, permitting, engineering, procurement, construction, operations, maintenance, decommissioning and other significant functions for ocean-based energy projects, utility-scale wind projects, or large scale generation projects;
(5) For each entity that is, or has committed to, providing financing to the proposed project:
(a) The identity of the entity and a brief description of its business;
(b) Name, title, address, telephone number, and email address of the primary contact person;
(c) Most recent audited financial statements that use either generally accepted accounting principles or International Financial Reporting Standards; and
(d) Issuer or long-term senior unsecured debt ratings, or both, from at least one nationally recognized statistical ratings organization (if available);
(6) Name, title, address, telephone number, and email address of the primary contact at any entity with which the OSW applicant has a contract or similar agreement to perform permitting, engineering, procurement, construction, operations, maintenance, decommissioning or similar functions for the proposed project;
(7) Complete information about any current or prior business bankruptcies, defaults, disbarments, investigations, indictments, or any other actions against the OSW applicant and any member of the executive team, the project team, or key employee(s) of any company included in §F(1) of this regulation; and
(8) Complete information about work performed by one or more entities included in §F(1) or (6) of this regulation that is similar to the proposed offshore wind project, including ocean-based energy projects, utility-scale wind projects, or other large scale generation projects.
G. An application shall include the following information about the proposed offshore wind project:
(1) A general description of the proposed offshore wind project, including but not limited to site plan, location, number of turbines, nameplate capacity, area, typical distance to shore, typical water depths, general seabed description, main competing uses, and sensitive areas;
(2) General maps showing turbine layout, landfall and grid interconnection points, and construction layout site;
(3) A wind resource and energy yield assessment at planned hub height with supporting data in an industry-standard report with expected gross (at generator terminals) and net (at PJM billing meter) annual energy production, including a breakdown of energy losses as well as turbine technical availability (scheduled and forced outages), uncertainty estimates of the net annual energy production at confidence intervals (P5, P10, P50, P90, and P95), and hourly energy production profiles by month (12x24 matrices) for a typical year;
(4) Wind turbine technology with turbine manufacturer, model, performance history, track record in offshore wind applications, physical dimensions and weight, hub height, rotor diameter, and nameplate capacity, design standard, turbine certification status under applicable standards and guidelines such as those developed by the International Electrotechnical Commission, service life, and design life information;
(5) Foundation and support-structure descriptions that include explanations of why the foundation and support structures are appropriate for the site, as well as climatology information that includes wind, wave, and current data;
(6) A description of the electrical collection system and connection to the transmission grid that includes the location and description of any onshore and offshore substations, inter-array and export power cables, interconnection route, landfall and facilities (including rights of way), interconnection plans, status of the interconnection request submitted to PJM, schedule for completing the interconnection studies, and electrical one-line diagram of the facility up to the interconnection point;
(7) Site-control status and plan to acquire and ensure site control for the operating term, interconnection and right-of-way status (or plans), and status of discussions with BOEM and other relevant entities;
(8) A general description of balance of plant components that includes any meteorological mast, communication system, and supervisory control and data acquisition system;
(9) A procurement and construction plan that includes the following, with milestones:
(a) All steps from commencement of procurement and construction to testing and project COD of the proposed project;
(b) A contracting strategy and construction organizational chart;
(c) A description of laydown, storage, and assembly areas;
(d) The OSW applicantís plan to promote the prompt, efficient, and safe completion of the proposed project (particularly with regard to the construction and maintenance of the project in accordance with Public Utilities Article, §7-704.1(d)(1)(ix), Annotated Code of Maryland);
(e) Plans to comply with The Merchant Marine Act of 1920; and
(f) A framework for a construction period health and safety plan;
(10) An operations and maintenance plan with a schedule of principal operations and maintenance activities, locations of specific ports with operations and maintenance facilities, and estimated operations and maintenance labor divided between specialized out-of-state and in-state labor;
(11) A permitting and approvals plan with a detailed matrix listing all required federal, state, and local environmental and regulatory permits and approvals, and setting out the schedule for obtaining the permits and approvals. This should include plans to obtain a certificate of public convenience and necessity for a proposed qualified submerged renewable energy line and plans to conduct an environmental review in compliance with applicable statutes, such as the National Environmental Policy Act, and that include a description of the types of studies (physical, biological and socio-economic) to be performed. Plans should demonstrate compliance with the Endangered Species Act, Migratory Bird Treaty Act, and Marine Mammal Protection Act, applicable BOEM regulations and guidelines for surveying natural resources (including, but not limited to avian species, benthic habitats, fish, marine mammals, and sea turtles), local/state regulations, and the Coastal Zone Management Act, as applicable;
(12) A decommissioning plan that demonstrates the safe and environmentally responsible removal and disposal of the turbine structures, offshore electrical substation and other offshore facilities, and interconnection facilities, particularly those located in State waters and on State lands; a comprehensive estimate of facility and interconnection decommissioning costs; and assurance that adequate funding shall be available for complete decommissioning of the proposed project, including a detailed explanation of how adequate funding shall be assured.
H. An application shall include a project COD and a proposed timeline for the proposed offshore wind projectís development and critical path schedule that includes milestones for site assessment, engineering, permitting, turbine certification, financing, procurement, manufacturing, construction, testing and commissioning commercial operation dates, and delivery term;
I. An application shall indicate whether the proposed projectís nameplate capacity is larger than required to provide the aggregate proposed OREC amount for the term of the proposed OREC price schedule. If the proposed projectís nameplate capacity exceeds the capacity required, and the OSW applicant submits a two-part OREC price as described by §M of this regulation, the application shall include a methodology for determining a reasonable allocation of the transmission upgrade costs to be included in the OREC price. The OSW applicant shall have the burden of demonstrating that its proposed allocation methodology is fair and in the interest of ratepayers.
J. An application shall include the following commercial information related to the proposed offshore wind project:
(1) OSW applicantís plan for engaging small businesses;
(2) Subject to Regulation .06 of this chapter, OSW applicantís plan for compliance with the Minority Business Enterprise Program for the construction, manufacturing, and maintenance phases of the proposed offshore wind project;
(3) OSW applicantís plan for the use of skilled labor, especially for the construction and manufacturing components of the project, including outreach, hiring, or referral systems, or all of these, that are affiliated with registered apprenticeship programs under Labor and Employment Article, Title 11, Subtitle 4, Annotated Code of Maryland;
(4) OSW applicantís plan for using an agreement designed to ensure the use of skilled labor and to promote the prompt, efficient, and safe completion of the project particularly with regard to the construction, manufacturing, and maintenance of the proposed offshore wind project; and
(5) OSW applicantís plan to provide for compensation to its employees and subcontractors consistent with wages outlined in State Finance and Procurement Article, Title 17, Subtitle 2, Annotated Code of Maryland.
K. An application shall include the following financial information related to the proposed offshore wind project:
(1) Detailed financial analysis of the proposed project, including:
(a) A pro forma income statement, balance sheet and cash flow projection covering the development period, construction period and operating term during the term of the proposed OREC price schedule, with detailed revenues and expenses;
(b) Description and estimated benefits of any State or federal grants, rebates, tax credits, loan guarantees or other similar benefits received by the proposed project; and
(c) Estimated internal rate of return and return on equity;
(2) Proposed offshore wind project balance sheet at project COD with all capital expenditures broken down by major cost category;
(3) Proposed capital structure identifying equity investors, sources of debt, any other sources of capital, and written demonstration of equity and debt funding commitments, which include the following:
(a) For an OSW applicant that is seeking equity investors in a proposed offshore wind project:
(i) Documentation of the OSW applicantís serious, good-faith efforts to solicit and interview a reasonable number of minority investors, which shall include a demonstration of the OSW applicantís coordination with the Governor's Office of Small, Minority & Women Business Affairs; and
(ii) A confidential statement listing the names and addresses of all minority investors interviewed and whether or not any of those investors have purchased an equity share in the proposed offshore wind project; or
(b) For an OSW applicant that is not seeking equity investors in a proposed offshore wind project, a statement from that OSW applicant affirming that it is not seeking equity investors in the proposed offshore wind project;
(4) Year-by-year spending projections of expenses and capital expenditures by five- or six-digit NAICS code extending through the term of the proposed OREC price schedule and divided into four categories:
(a) In-State labor;
(b) In-State non-labor;
(c) Out-of-State labor; and
(d) Out-of-State non-labor;
(5) Detailed matrix, supported by documentation, demonstrating that the OSW applicant has applied for all current eligible State and federal grants, rebates, tax credits, loan guarantees, or other programs available to offset the cost of the proposed project or provide tax advantages;
(6) Affirmative statement of the OSW applicantís commitment to use best efforts to apply for all eligible State and federal grants, rebates, tax credits, loan guarantees, and other similar benefits as those benefits become available and to agree to pass along to retail electric customers 80 percent of the value of any State or federal grants, rebates, tax credits, loan guarantees, or other similar benefits received by the proposed project and not included in the application;
(7) Affirmative statement that the OSW applicant will execute a memorandum of understanding with the Commission that requires the OSW applicant to make serious, good-faith efforts to interview minority investors in any future attempt to raise venture capital or attract new investors to the qualified offshore wind project;
(8) Affirmative statement of the OSW applicantís commitment to deposit $6,000,000 into the Maryland Offshore Wind Business Development Fund, which shall consist of an initial deposit of $2,000,000 within 60 days of the Commissionís approval of a proposed offshore wind project, $2,000,000 within 1 year after the initial deposit, and $2,000,000 within 2 years after the initial deposit;
(9) Affirmative statement by the OSW applicant that it will hold harmless the retail electric customers, OREC purchasers, and the State for any cost overruns associated with the proposed offshore wind project; and
(10) Affirmative statement that the OSW applicant will use commercially reasonable efforts to sell its electricity service attributes to the PJM markets.
L. An application shall include a cost-benefit analysis that covers the following items and the assumptions and data that the OSW applicant used to generate each item:
(1) An input-output analysis describing the in-state impact on income, employment, wages, and state and local taxes, with particular emphasis on effects on manufacturing employment in the State, as well as the complete set of data and assumptions that the OSW applicant used to generate the input-output analysis;
(2) An analysis describing expected employment impacts in the State (expressed as full-time equivalent positions), including expected type and duration of employment opportunities, the expected salary range of positions, and other effects resulting from, for example, in-state construction, operations, maintenance, and equipment purchases, and supported by detailed documentation, including any binding commitments;
(3) An analysis describing the in-state business impacts of the proposed offshore wind project;
(4) An analysis describing anticipated environmental and health impacts, including impacts on the affected marine environment based on publicly available information, related to construction, operation and decommissioning of the proposed offshore wind project, including direct emissions impacts created by the proposed offshore wind project related to carbon dioxide, oxides of nitrogen, sulfur dioxide, particulates and mercury emissions (in each case, expressed in terms of the number of tons of emissions abated per annum), as well as other relevant environmental and health impacts to the citizens of Maryland;
(5) An analysis describing any other impacts on residential, commercial, and industrial retail electric customers over the life of the proposed offshore wind project;
(6) An analysis describing the long-term effect of the proposed offshore wind project on wholesale energy, capacity, and ancillary services markets administered by PJM that includes analysis of contributions to regional system reliability, fuel diversity, competition, transmission congestion, and other power market benefits;
(7) An analysis describing any other benefits to the State created by the proposed offshore wind project, such as in-state construction, operations, maintenance, and equipment purchases; and
(8) Other relevant considerations that the OSW applicant elects to include.
M. An application shall include a proposed OREC price schedule for the proposed offshore wind projectís electricity service attributes that is subject to the following requirements:
(1) The proposed OREC price schedule shall consist of either a:
(a) Two-part OREC price in which the first component is expressed as either a single firm price for each calendar year or a series of firm prices for each calendar year and the second component is expressed as a single firm price for each calendar year subject to a true-up based upon any change between the Commissionís estimated cost of transmission upgrades and PJMís actual upgrade cost as specified in the executed Interconnection Service Agreement, for a total OREC price up to and not exceeding $190 per megawatt hour (levelized in 2012 dollars) and subject to the projected net rate impact caps for residential and nonresidential customers, as described by Public Utilities Article, §7-704.1(e)(1)(ii) and (iii), Annotated Code of Maryland; or
(b) One-part OREC price, expressed as either a single firm price for each calendar year or a series of firm prices for each calendar year, that is not subject to true-up, up to and not exceeding $190 per megawatt hour (levelized in 2012 dollars) and subject to the projected net rate impact caps for residential and nonresidential customers, as described by Public Utilities Article, §7-704.1(e)(1)(ii) and (iii), Annotated Code of Maryland;
(2) The unit of OREC price on the proposed OREC price schedule must be on a dollars ($) per delivered OREC (MWh) basis by calendar year; and
(3) All proposed OREC price schedules shall propose OREC prices for each calendar year for an initial term of up to 20 years commencing on the estimated project COD and an additional schedule of OREC prices for each of the five calendar years immediately following the end of the initial term to cover potential delays in project COD.
N. An application shall include a proposed OREC amount that is a quantity, expressed as a single annual number on a megawatt hour per calendar year basis and fixed for the proposed term of the projectís proposed OREC price schedule, and that is accompanied by the expected generation confidence level associated with that proposed OREC amount.
O. An applicant may submit more than one application for any proposed project or more than one proposed OREC price schedule and related proposed OREC amount for the same application. If an applicant submits multiple proposed OREC price schedules and related proposed OREC amounts, each proposed OREC price schedule and related proposed OREC amount together with its related application will be treated as a separate application. All applications will be treated as mutually exclusive.