By Lisa Wilcox
Staff Writer
LIMESTONE — Solar energy, grass pellet-fueled heating, and the acquisition of the LDA’s pipeline were the major points discussed at Loring Development Authority’s Board of Trustees Meeting held on Sept. 12.
In 2011, the LDA heard from The Power Company, aka Maine Energy Performance Systems, about the potential to develop solar energy in northern Maine. They were originally interested in doing a larger 0.45 megawatt project, but for various reasons, have now proposed a smaller 53 kilowatt demonstration project that would generate the amount of electricity used in the LDA office building and shop. The solar panels would be set up on the grounds south of the office building.
Carl Flora, LDA president, explained the proposed contract would call for TPC to lease the solar panels and related equipment to LDA for up to a 20-year term. The electricity generated by the panels would be routed to the LDA’s metered accounts for the two buildings via a “net metering” arrangement with Maine Public Service Company. The output of the solar equipment would then be sold to LDA at 95 percent of the LDA’s avoided cost — the charges the LDA would have incurred with the normal electricity purchase options and delivery charges. The price is adjusted every three years to equal the average cost over the previous three-year period. The environmental and tax attributes, such as renewable energy credits, carbon credits, green tags, tax credits and other tax benefits, all accrue to TPC, but since the tax benefits are used within the first six years, the agreement would permit the LDA to purchase the equipment in the sixth year of use and possibly at other times prior to the expiration of the 20-year lease.
If the LDA does not opt to purchase the panels, TPC would remove the equipment. The system has a 25- to 30-year useful life, although the electrical output of the solar panels does decline slightly every year.
Based on projections by TPC, the LDA could save in excess of $169,000 over a 30-year timeframe for electricity expected to be consumed in the LDA office building.
LDA Board Member Miles Williams, a Maine Public Service employee, was able to shed some light on how the sale of the generated energy would work with MPS and explain PUC regulations.
Flora stated he believes this to be a low-risk arrangement for the LDA since the power costs would be tied to the output of the solar equipment and would be lower than what they would otherwise pay.
Discussion then moved on to the possibility of installing a grass pellet-fueled heating system in two LDA buildings, the former NCO Club and the LDA maintenance shop.
Flora advised that he recently met with James Knight and Aaron Cook of Pelletco, a Maine-based biomass energy technology firm, to discuss the progress they have made with grasses that yield high-energy content and heating equipment needed to burn grass pellets. Pelletco provided a proposal to supply heat to the two LDA buildings for a 10-year term.
Based on last year’s average oil cost, their proposal projected to save the LDA about $9,100, and based on today’s fuel oil costs, the savings was projected at over $16,000. The LDA would also see additional savings in not having the expense of mowing the airfield and housing areas. as that is where Pelletco would harvest the grass used to make the pellets.
Pelletco would supply the grass pellet-fueled heating system in a shipping container that is placed outside of the buildings in proximity to the oil boiler. Piping is then installed by Pelletco to connect the containerized heating system to the building’s existing heat distribution system via a heat exchanger. The Pelletco system would be sized to supply most of the heating needs, except for extremely cold days or when the garage bay doors are opened for a prolonged period of time. The oil boiler would supplement the pellet system when needed.
Flora advised that Pelletco is also looking at several LDA buildings as a potential location for a grass pellet processing plant.
According to Pelletco’s proposal, the LDA’s capital commitment would be $0. They would pay Pelletco for their consumption of the pellets on a monthly basis. The LDA would have the responsibility of keeping the area accessible for installation and removal of the ash generated by the boiler. They would also have to maintain their current oil heating system for backup.
The board discussed specifics regarding the mowing area and concerns over protected wildlife in those areas. Flora will continue negotiations with Pelletco. The current proposal is preliminary and more discussion is needed for a formal contract to be drafted.
The third major piece of business on the agenda was a presentation by David Shipley and Jerry Livengood of Bangor Gas for the proposed development of the LDA pipeline for natural gas.
The pipeline runs from Searsport to Limestone and is a former jet fuel feed line for Loring. Its use was discontinued in 1995. There have been ongoing negotiations regarding the leasehold on the pipeline, and Flora explained that Bangor Gas will effectively be stepping into the position formerly held by Loring BioEnergy. who had prior leasehold interest. Shipley’s public presentation regarding their plans for the pipeline to bring natural gas to Aroostook County was brief. He outlined BG’s history and experience with natural gas and the specifics of the LDA pipeline. Shipley spoke about their objectives to convert to natural gas and the four phases of development: customer assessment, pipeline safety analysis, pipeline/corridor development and implementation.
After fielding a few minor questions from board members regarding the presentation, Shipley concluded the public portion. The board later met with BG in a closed executive session to delve into more details of their plans for the pipeline.
Flora’s President’s Report followed the BG presentation. Flora spoke about the progress being made in developing a statewide initiative to establish Maine as a test range for unmanned aerial vehicles. Flora recently traveled to Augusta and met with Department of Economic and Community Development Commissioner George Gervais, Steve Levesque of the Midcoast Regional Redevelopment Authority, and Christine Schumann of DECD to discuss the application process with the Federal Aviation Administration to acquire the designation of one of six planned test ranges.
The first step would be engaging the help of consultants to prepare a proposal. Flora will be speaking with Maine Technology Institute about acquiring their help in this process. Flora commented that MTI is extremely interested in working with the LDA to lead this initiative of getting the state of Maine designated as a test site. The projected budget is about $400,000. Flora advised that MTI would look at providing grants to help with the funding. He reported that a lot of work still needed to be done, but he is pleased with the progress so far.
Flora’s report also provided updates on the following:
•Tin Cup Land Company. The LDA is still waiting for paperwork to be drafted by attorneys to settle the mortgage debt associated with the Limestone Country Club’s golf course and housing business units.
•Sewer I & I project phase III. The sewer line replacement project is complete. There were some problems with the wildlife refuge and pooling water. Culverts were installed to fix the problem. A major rain event maxed out the sewage capacity and Flora feels the next phase of the project needs to get under way.
•Water treatment plant upgrades. Phase I is nearing completion. Software for the monitoring system has been programmed and is set to be installed.
•Progress with Limestone on municipal services. Because of complications with some Limestone selectmen resigning, it is believed that no progress will be made on the LDA tax and service questions for some time.
Flora closed his report by informing the board that the wastewater treatment plant will be having an open house on open Sept. 20 and an email will be sent out with details on attending.
After Flora’s report, the board went into executive session to continue their meeting with Bangor Gas. The next board meeting will be scheduled for the end of October.
