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Turnagain Arm Tidal Electric Generation Project- Preliminary Permit App 2009
BEFORE THE UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION Turnagain Arm Tidal Electric Generation Project Preliminary Permit Application 5/21/2009 Prepared by In Association with Dominic S.F. Lee, P.E. President and CEO Little Susitna Construction Co., Inc. Blue Energy of Canada, Inc. 821 N St., Suite 207 #204, 2060 Comox St. Anchorage, AK 99501 Vancouver, BC F6G 1R8 A tidal opportunity in Turnagain Arm, Cook Inlet, Alaska to turn the ocean’s surge into a renewable and cheap energy supply. The project will produce 1200 megawatts of electricity and supply 70% of Alaska’ electricity needs. “Man only needs to exercise his engineering ingenuity to Convert the ocean’s surge into a renewable energy. A great national asset.” President John F. Kennedy October 22, 1963 TABLE OF CONTENTS Application for Preliminary Pertmit..........-.scssccsscssscssssssensessssssssesserensennesscsssenssnssnssanssuncensenseeaees 2-24 Signatory Page.........esscsscssersesesseenesesenereeesenenssessessensenses ecu svressunnesescesssosasessoscuscessaesesnes oscsovesens overs 25 Project Schedule.............. acoseeecosese son seecusensees censesceseeesesvervensscesscenoesconcesecessecescresseroneesesssseoseseseenesese 26 AttachMentt.........scsccccssesecerere Infrastructure: Fairbanks to Homer: Alaska Railbellt.............sssssscsscsssssseessesessssenes i Turnagain Arm Tidal Electric Generation Project Location............0+0 Land Ownership Map in Vicinity Of Project..........cscssssscsssassseecenseesseen bssonttesoabiesabassestan Fig. 3 Tidal Fence Project.........cssssscscssssssssssssessessesscnsencnsensnessensassnssnsessseosenacensessesarssssnensncnsoeess Fig. 4 Tidal Fence Project Including Control Buildings and Transmission Line................. Fig. 5 Project Area REQUCSt...........ssccccsecsssssessensnssnssssessecesensarsessseneesonsessesssecensensesenssssonsnsensoees Fig. 6 Proposed State Dept. of Transportation Two-Lane Causeway Design Built and Owned by the State of Alaska............s.sscssssscssessensensensennenssnssnssnsee Fig. 7 TABLE OF CONTENT: Application for Preliminary Permit...........sscssssssccssscsssssscessssenssnssensenensnesneennssnssenseneenscssssnneaneones 2-24 Signatory Page. Project SCHEdUIC............sssssssssssscsssssssssessssssesssnsscnnccssessensesscssussensessnscnnecsuensnnccnecenesenacensseassenases eens 26 AttachMentts.......scecsersesee ssonsenceserescesesconeecven cenesssesovesoness Infrastructure: Fairbanks to Homer: Alaska Railbelt..............cesssscssssssssseessssernsnsens Fig. 1 Turnagain Arm Tidal Electric Generation Project LOCAatION.............-sssssesseseenene Fig. 2 Land Ownership Map in Vicinity of Project............ duslobesetunasaosasusasissbssnesensosssueestsnsosessee Fig. 3 Tidal Fence Project.........ssscscscsssssssssseccsoscssessscsssssccnsarscessssssncasacssonasasaessansneseesenanseneoees Fig. 4 Tidal Fence Project Including Control Buildings and Transmission Line................. Fig. 5 Project Area REQUESt........ccsecscsresecsssesssnssseeessnsnssencnssnssenensoessensnsssesasesssensusnccesosecensassees Fig. 6 Proposed State Dept. of Transportation Two-Lane Causeway Design Built and Owned by the State of Alaska.........s.scescssssssssssssesneesssensecnsenseeseeee Fig. 7 Initial Statement Before the Federal Energy Regulatory Commission Application for Preliminary Permit For a Tidal Electricity Generation Project (1) Application Statement Little Susitna Construction Co., Inc., 821 N St., Suite 201, Anchorage, AK 99501 and Blue Energy Canada, Inc., #204, 2060 Comox St., Vancouver, BC V6G 1R8 hereby apply to the Federal Energy Regulatory Commission for a preliminary permit for the proposed Turnagain Arm Tidal Electric Generation water power project as described in the attached exhibits. This application is made in order that the applicant may secure and maintain priority of application for a license for the project under Part 1 of the Federal Power Act while obtaining the data and performing the acts required to determine the feasibility of the project and to support an application for a license. (2) Location of Proposed Project State or territory: Boroughs: State of Alaska Governor Sean Parnell 550 W. 75™ Anchorage, AK 99501 Phone: (907) 269-7450 *Municipality of Anchorage 632 W. 6" Ave. Anchorage, AK 99501 Phone: (907) 343-7100 (*The Municipality of Anchorage is a consolidated city borough. Alaska does not have counties. Eagle River-Chugiak and Girdwood are located within the Municipality of Anchorage.) Cities w/in 15 mi: Interested in or Affected by: Kenai Peninsula Borough 144 N Binkley St. Soldotna, AK 99669 Phone: (907) 262-4441 Matanuska-Susitna Borough 350 East Dahlia Avenue Palmer, AK 99645 Phone: (907) 745-4801 Municipality of Anchorage 632 W. 6" Ave. Anchorage, AK 99501 Phone: (907) 343-8402 City of Kenai 510 S. Willow St. Kenai, AK 99611 Phone: (907) 283-7353 City of Soldotna 177 N Birch St. Soldotna, AK 99669 Phone: (907) 262-9107 Native Village of Tyonek P.O. Box 82009 Tyonek, AK 99682 Phone: (907) 583-2271 Eklutna Native Village 16339 Eklutna Native Village Road Chugiak, AK 99567 Phone: (907) 688-6020 City of Seward P.O. Box 167 Seward, AK 99664 Phone: 224-3331 City of Homer 491 East Pioneer Ave. Homer, AK 99603 Phone: (907) 235-8121 City of Palmer Dept. of Administration 231 W. Evergreen Ave. Palmer, AK 99645 Phone: (907) 745-3271 City of Wasilla City Hall 290 E. Herning Ave. Wasilla, AK 99654 Phone: (907) 373-9050 City of Fairbanks 800 Cushman St. Fairbanks, AK 99701 Phone: (907) 459-6793 Stream or other Body of water: Turnagain Arm of Cook Inlet near Anchorage, AK and Kenai, AK. Alaska does not have irrigation districts or drainage districts. (3) Exact Name, Business Address, and Telephone Numbers for Applicant Little Susitna Construction Company, Inc. (907) 274-7571 821 N St., Suite 201 Anchorage, AK 99501 Blue Energy of Canada, Inc. (604) 682-2583 Vancouver Office #204, 2060 Comox St. (403) 277-2580 Calgary Office Vancouver, BC F6G 1R8 The exact name and business address of each person authorized to act as agent for the applicant in this application is: Dominic Lee, P.E. President and CEO Little Susitna Construction Co., Inc. 821 N St. Suite 201 Anchorage, AK 99501 (4) Statement of Claim of Preference Under Section 7(a) of Federal Power Act Little Susitna Construction Co., Inc. is a corporation registered with the State of Alaska and is not claiming preference under section 7(a) of the Federal Power Act. (5) Proposed Term of Requested Permit The proposed term of the requested permit is from 2009 to 2012. (6) | Statement of Presence of Existing Dam or Other Project Facility There is no known dam or other project facility at the site of this project. (b) Description of Proposed Project Turnagain Arm of Cook Inlet has the fourth highest tide in the world with 25 feet (7.6m) between low tide and high tide and the inlet located between Anchorage, Alaska’s largest city and Kenai, where a number of industries and power grids are located, is a perfect location to install a tidal power project to generate electricity for the whole of the Alaska Railbelt area where 65% of the people in Alaska live. (Fig. 1) The Railbelt region electrical grid is defined as the areas served by six regulated public utilities that extend from Fairbanks to Anchorage and the Kenai Peninsula. The southern portion of the Railbelt region: the Mat-Su Valley, Anchorage, and Kenai Peninsula, are highly dependent on natural gas as the source of electricity and heat, and the majority of the generation is combustion turbirie generation. The Cook Inlet gas basin still yields natural gas for power generation and space heating, but known reserves are now falling and dropping field operating pressures are causing concern that the region may not be able to depend on lower Cook Inlet for adequate gas supplies in the future. Nearly all of the thermal generating capacity from coal fired and natural gas fired power plants in the Railbelt is more than 20 years old, and much of it is more than 30 years old. (Fig. 2) The Turnagain Arm Tidal Electric Generation Project would provide the main populated region of Alaska with inexpensive renewable energy that would not produce greenhouse gasses and can be constructed in an environmentally friendly way. The project calls for the use of Blue Energy’s Tidal Bridge which will use the Davis Turbine to generate electricity with the movement of the tides in the Turnagain Arm of Cook Inlet. The Davis Turbine is a low cost, simple mechanical device that employs a hydrodynamic lift principle, causing vertically oriented foils to turn a shaft and a generator faster than the speed of the water. The Davis Turbine was developed by Mr. Barry Davis in the 1980’s under a 12 year $1.3 million research and development grant sponsored by the National Research Council Hydraulics Laboratory in Ottawa, Canada and Energy Mines and Resources Canada. His work evolved from a vertical axis wind turbine concept patented by Darrieus in 1929, into a tidal current driven turbine. This turbine is comprised of vertical hydrofoils attached to a central shaft transmitting torque to a generator. The kinetic energy from tidal flows can thus be efficiently harnessed and converted to electrical energy. Contrary to the traditional drag driven paddle wheel design, the Davis Turbine Fater is designed to be lift driven, much like the modern wind turbines, thus allowing the blades to operate at a significantly higher efficiency. In order to further increase the efficiency of the turbine, the entire rotor assembly is housed in a thin-shell marine concrete caisson structure that channels the water flow and acts as housing for the generator and electrical components. The shape of the caisson inner walls accelerates the velocity of the water flow through the turbine rotor by acting as a venture and controls flow direction to provide more uniform turbine performance. In addition, the Davis turbine is designed to work through the entire tidal range with a typical cut-in speed of 1m/s. In addition to a-rigorous technological development, Blue Energy is taking advantage of recent improvements in generators mostly spurred by the wind turbine industry, as well as the development of composite materials, manufacturing processes, and grid inter-tie and transmission controls. All of these factors serve to enhance the efficiencies, cost benefit ratios, and ultimately the net saleable power output of the turbines. (1) The number, physical composition, dimensions, general configuration and, where applicable, age and condition, of any dam, spillways, penstocks, powerhouses, tailraces, or other structures whether existing or proposed that would be part of the project. Blue Energy will build tidal bridges using modular Davis Turbine units that will be stacked to extend from the ocean floor to the water surface. These are large scale, site specific installations that will vary in size and output capacity by location. Tidal bridges may be used to support transportation across rivers, tidal estuaries or ocean channels with current velocities in excess of 1.5 m/s (3.5 knots) and depths of up to 60 meters. Each caisson module will measure 10.5 meters in diameter and differ in height to accommodate different depths and power needs. The turbine modules will extend from the bottom of the channel to 2 meters above the high tide line, while the rotor bays will extend from the bottom of the channel to 3 meters below the low tide line. This:will enable the turbines to work on the rise and the fall of the tides and protect the rotors from most floating debris such as ice and logs. The tidal bridge will be comprised of the turbine modules in a linear array and concrete pilings. Two tidal fences 8 miles long will be constructed consisting of 1000/MW Davis turbines each for a total of 2,000 MW electricity generating peak capacity with 1200 MW baseline aggregate capacity. The first tidal fence will stretch from just off Fire Island to Kenai Peninsula Borough land located near Possession Point for 8 miles. (See Figure 4.) A transmission line mounted on structures on top of the tidal fence will stretch across the tidal fence. The tidal fence will have a service road across the top. The road will continue to the land on the Kenai side so that the turbines can be serviced from the Kenai side. At the east end of the tidal fence, a transmission line will be laid under the inlet for 9 miles and run to Campbell Point, where another control building will be located. (See Figure 4.) From the control buildings, the transmission lines will be built to the nearest substations at Nikiski on the Kenai side and at 5601 Electron Drive on the Anchorage side. A control building near Possession Point in Kenai Borough on Kenai Peninsula Borough land near the inlet will control the turbines and the intertie of transmission line to existing grids and the electrical substation grid. (See Figure 4.) A second control building will be built somewhere along Raspberry Road in Anchorage. (See Figure 5.) The control buildings are expected to be 100’ X 60’, two-story, 12,000 sq. ft. buildings to accommodate 10 workers, three shifts. All electric lines will run from the tidal fence to Homer Electric on the Kenai side and to Chugach Electric on the Anchorage side. (See Figure 5.) The generators will be direct drive DC generators, and will be conditioned to the appropriate AC power onshore. A switch yard will be built to connect and disconnect electricity produced by the tidal bridge to the existing power grid. The control building will be staffed to control the entire project operation. On the Kenai side, the Kenai Peninsula Borough has allotted a 300 ft. utility corridor adjacent to an easement for a roadway to be built along the inlet in the future. Currently, a trail exists on the easement which will be used as a service road to the control building and tidal fence. The coastal area below Possession Point and running along the coast to Nikiski and Kenai is owned by the Kenai Peninsula Borough. (See Figure 4 and Figure 5.) The transmission line will be built within this corridor, running approximately 52 miles along the coast to the unincorporated community of Nikiski, located at Point K, approximately N60°-46’-12” North Latitude and W150°-15’-0” West Longitude. Nikiski is located in the Kenai Recording District, about 18 miles north of Kenai on the Kenai Spur Highway. The transmission line will tie into Homer Electric grid at the Homer Electric Association substation near Nikiski, making the transmission line 52 miles long from the tidal fence on the Kenai side. On the Anchorage side of the tidal fence, the transmission line will be laid under the inlet for 9 miles and built across the Pt. Campbell area of Anchorage along Raspberry Rd. for 10 miles to the substation of Chugach Electric at 5610 Electron Dr. The transmission line will be approximately 19 miles long. A loop between Chugach Electric and Homer Electric will be created by the transmission lines. Altogether, the transmission line will be 71 miles long. A second 7.5-mile-long tidal fence will be built 5-7 miles to the south of Fire Island anda minimum of 5 miles away from the first tidal fence. The distance is needed to allow the tidal force to recover its strength after going through the first fence. (See Figure 4.) Atransmission line will be laid on the inlet floor for approximately 8 miles to the same control building described above. Another transmission line will be laid on the inlet floor for 8 miles to Campbell Point and the substation at Chugach Electric described above running for approximately 10 miles. (See Figure 4 and 5.) Altogether, the transmission line will be 18 miles across the tidal fence for a distance of 18 miles between the two control buildings. 10 The corridor for the transmission line on the Kenai side of Cook Inlet is adjacent to the Kenai National Wildlife Refuge and Alaska Native Claims Settlement Act (ANSCA) land of Cook Inlet Regional Corporation on Possession Point and along the western side of the Kenai Peninsula Borough coastal land. However, the transmission line itself will run within Kenai Peninsula Borough utility corridor. The connection between Homer Electric Association and Chugach Electric will create a loop with the existing transmission grid that crosses the Chugach National Park and the Sterling Highway. At the Chugach Electrical Association’s Engineering Department’s suggestion, the transmission line voltage shall be 230 KV and transmission lines will be built in pairs for redundancy. The State of Alaska Energy Authority is currently asking for a proposal to build a 230 KV railbelt grid line from Homer to Fairbanks. The transmission line from the Turnagain project will tie into Chugach at Anchorage to feed electrical power into the Alaska state railbelt grid to be built in the near future. The State of Alaska will have an option to build a causeway from Possession Point on the northwest corner of the Kenai Peninsula to Fire Island in Turnagain Arm, a distance of 15 miles. (See Figure 7.) In March, 2009, LSCC personnel Dominic Lee; John Eliason, CEO of Blue Energy of Canada; and Martin Burger, the founder of Blue Energy of Canada, spent a week in Juneau during the Alaska State legislative session. Our delegation visited 19 out of 20 Alaska Senators and all 40 Alaska State Representatives, as well as Governor Palin’s Energy Czar to present our plan. They all showed interest in the tidal fence and a state funded causeway between Kenai and Anchorage and promised to support the project. If the State of Alaska decides to build a causeway from Possession Point to Fire Island then to Point Campbell to connect with Raspberry Road in Anchorage, the design would be as follows: The turbine modules would be gravity mounted along the side of the causeway on the sea floor in the deeper parts of the channel which is approximately 7 miles in distance. Concrete pilings would support the bridge in the shallower sections of the channel. The pilings would be 11 connected with concrete partitions or “curtain wall”. This curtain wall would direct the flow of the tides to move through the turbine modules that make up the tidal fence. A two lane causeway would cross from the north end of Fire Island over four miles of tidal mud flats to the point just south of the Anchorage International Airport. This roadway would be supported by concrete pilings which are completely different from the tidal fence piling. The tidal bridge will have the advantage of being able to harness a large portion of the kinetic energy that flows through the channel, thus enabling reduced conversion losses due to resource by-pass. The blockage ratio of the tidal bridge will be on the order of 50%, leaving a significant part.of the waterway open to sea life, sediment, and water flow. One of the clearest advantages here is the dual infrastructural role of providing a transportation solution that will significantly reduce travel times and fuel consumption between Anchorage and the Kenai Peninsula. However, both the causeway project and tidal fence project are independent of each other. Either one can be built without the other. (2) Reservoirs Associated with Project There are no reservoirs associated with the project. (3) The estimated number, length, voltage, interconnections, and where applicable, age and condition, of any primary transmission lines whether existing or proposed, that would be part of the project: The transmission line to tie into existing Chugach Electric Association and Homer Electric Association power grid is proposed. It will be a 230 KV, total 1200 megawatt, approximately 173.9 Amps per phase for a total 521.7 Amp. A new transmission line will be used to tie into existing grid at North Kenai and Anchorage CEA substation. The transmission line running from the Homer Electric Association substation in Nikiski to Chugach Electric substation in Anchorage 12 will be approximately 71 miles long. There will be a pair of 230 KV lines from the project to Anchorage and to Kenai for redundancy. (4) The total estimated average annual energy production and installed capacity (provide only one energy and capacity value), the hydraulic head for estimating capacity and energy output, and the estimated number, rated capacity, and where applicable, the age and condition, of any turbines-‘and generators, whether existing or proposed that would be part of the project works: The install capacity is rated at 2200 megawatts with base line average output of 1200 mw which can supply 100% of the Alaskan Railbelt electrical needs or 70% of the total of the needs of the State of Alaska. There will be 220 Davis turbines. Each one can deliver 10 megawatts of electricity to the grid system. The annual generation capacity is as follows: 2200 megawatt X 24 hr X 365 days X 0.60(capacity factor/efficiency) 11,563,200 mwh/year or 10.548 trillion watts/yr (5) All lands of the United States that are enclosed within the proposed project boundary described under paragraph (e) (3) of this section, identified and tabulated on a separate sheet by legal subdivisions of a public land survey of the affected area, if available. If the project boundary includes lands of the United States, such lands must be identified on a completed land description form, provided by the Commission. The project location must identify any Federal reservation, Federal tracts, and townships of the public land surveys (or official protractions thereof if unsurveyed). A copy of the form must also be sent to the Bureau of Land Management state office where the project is located. No Federal tracts or any federally controlled land will be used. The exact location of the transmission lines is to be determined by testing that will confirm the best placement of the 13 tidal fence/s. The cables or transmission lines from the turbines and tidal fence would run along the top of the fence and would run to a building on Possession Point on the Kenai Peninsula where the electricity can be tied into the Homer Electric grid at the North Kenai Substation and to the Raspberry Road Substation in Anchorage. There are existing right-of-way areas along the utility corridor to allow for transmission lines on the area between Possession Point and Nikiski owned by the Kenai Peninsula Borough. The land to be used for the control building and the transmission line on the Kenai side of Turnagain Arm is adjacent to the Kenai National Wildlife Refuge along the west side of Kenai Peninsula Borough land. (See Figure 3.) The tip of Possession Point and land adjacent to the Kenai coastal corridor in the Swanson River area is designated as Cook Inlet Regional Corporation land. However, the control building would be located along the coast to the west of the CIRI land and north of the Kenai National Wildlife Refuge. The land to be used for the control building on the Anchorage side of Turnagain Arm would be on land of the Anchorage Borough on Raspberry Road. (See Figures 3, 4 and 5.) (6) Any other information demonstrating in what manner the proposed project could develop, conserve, and utilize in the public interest the water resources of the region. Not only does the use of tidal energy provide an adequate amount of renewable energy for the needs of the Railbelt area and eliminate all greenhouse gases from the production process, unlike natural gas, the tidal energy project also preserves the beauty of Cook Inlet, one of the most beautiful and accessible tourist attractions in Alaska. The tidal project can be designed to enable the free movement of fish and whales and produces no noise or other pollution when in place and operating. The turbines turn at a very slow speed and can be compared to a hotel entrance revolving door without the 4 pieces of glass. The moving parts are 30 feet wide and 30 feet long so that the fish, whales, and other sea mammals can swim through without any difficulty. 14 The tidal project also avoids the environmental disturbances associated with building a pipeline across tundra, Alaskan streams and rivers, and wildlife preserves, one of the options Alaska is facing to provide energy for the railbelt region through either the builet line approach or the spur line from a proposed gas line. A tidal energy project in Cook Inlet also avoids the problems associated with building a hydroelectric dam that would involve much disturbance of fish and wildlife while presenting a danger of failure in a highly seismic region like South Central Alaska. The depth of the turbines will also allow for recreational fishing and boating in Cook Inlet and will not interfere with commercial ships that travel in routes located to the north of Turnagain Arm. The depth of the turbines with a clearance above the water will allow for a natural process of freezing and thawing in the Inlet without any interruption of electrical power. The use of Turnagain Arm for tidal energy will preserve many of the water resources of Alaska which could be disturbed by other forms of energy production while using the natural power of the tides to provide clean energy in an environmentally friendly way. A major advantage of the design is that more turbines could be added with minimal disturbance of the area or expense of building new facilities as the population of the area grows. The use of tidal energy in Turnagain Arm would also provide a model that could be used in other communities around the world and could contribute to a greater understanding and communication between peoples about the use of tidal energy, especially in northern climates. The 10 trillion kilowatt hours generated annually by tidal energy will eliminate 100 million tons of CO, that would otherwise be generated into the atmosphere if produced by a carbon based fuel, thus reducing global warming. Another benefit is that if the State of Alaska Department of Transportation along with the Federal Highway funds a 15-mile-two-lane causeway from Anchorage to Fire Island to North 15 Kenai, commuters will save 3 hours of driving time between Anchorage and the Kenai Peninsula, saving at least 25 gallons of gasoline and millions of tons of CO, emissions while allowing for new development and growth in Alaska. (See Figure 7.) (c) Exhibit 2 is a description of studies conducted or to be conducted with respect to the proposed project, including field studies. Exhibit 2 must supply the following (1) General Requirement. For any proposed project, a study plan containing a description of (i) Any studies, investigations, tests, or surveys that are proposed to be carried out, and any that have already taken place for the purposes of determining the technical, economic, and financial feasibility of the proposed project, taking into consideration its environmental impacts, and of preparing an application for a license for the project; and Two experimental test units and four prototype Davis Hydro Turbines were successfully built and field-tested as part of the R&D program with the NRC. One unit (VEGA 1) was built and tested in the Florida Gulf Stream with private funds. Following the R&D work at the NRC, Mr. Davis transferred the tidal turbine technology to Blue Energy. These devices saw water-to-wire efficiencies on the order of 45%. In 2006, Blue Energy signed a Collaborative Research Agreement (CRA) with the University of British Columbia to develop computer simulations of the Davis turbine. Initial numerical model development made use of a commercial Computational Fluid Dynamics (CFD) code to replicate the experimental work generated at the NRC. Additionally, a complementary numerical code has been developed by a PhD candidate with on-going code improvements. The company also developed an experimental towing tank program intended to provide data from a physical model to validate the numerical simulations. The group tested a physical model in August 2006, November 2006, and again in September 2007 for a total of 1375 validated test 16 runs at the Oceanic towing tank. Both numerical codes showed to be in good agreement with experimental data. The numerical work thus provides a significantly more cost and time effective method of predicting blade performance and loading, optimum ducting shape, and scalability when Compared to cost intensive experimental testing. In addition to a CFD guided development strategy, BEC is taking advantage of recent improvements in generators mostly spurred by the wind turbine industry, as well as the development of composite materials, manufacturing processes, and grid inter-tie and transmission controls. All of these factors serve to enhance the efficiencies, cost benefit ratios, and ultimately the net saleable power output of the turbines. The engineering firm RW Beck has risk mapped the technology and said the following: “The Davis Turbine, in our opinion, is a technically feasible alternative for producing electricity. All investigators who have reviewed the concept including the US Army Corps of Engineers, the National Research Council of Canada and other consulting engineering firms agree that this technology works and it is a credible development.” -RW Beck (Engineering) Inc., Sept. 2005 Currently, a 200 megawatt tidal fence, using the Davis turbine technology is being built at Scotland, U.K. at the Churchill Barrier of the Orkney Islands. The project is projected to come on line in 2011. Studies proposed for the future are a Feasibility Study, a Cost Estimation Investigation, and a Public Relations Study to obtain commitment for the project. a Preliminary Engineering Study ee eee Preliminary Siting investigation Recommendation of design to suit the site _recommendgation oe oS ee 17 Cost Estimation Investigation Investigation of Cost of Applications Required Investigation of Cost of Project Planning Investigation of Construction Cost Public Relations to Obtain Commitment Activities to Obtain Preliminary Commitment from Utilities Activities to Obtain Preliminary Commitment from Communities Activities to Obtain Preliminary Commitment from Alaska State Government Activities to Obtain Preliminary Commitment from Federal Government (ii) The approximate locations and nature of any new roads that would be built for the purpose of conducting the studies; and We do not anticipate any new roads for the purpose of conducting studies. There will be a new gravel road to Kenai from the tidal fence and control building leading to a road across the tidal fence so that vehicles can travel out to service the turbines. On the Anchorage side, a road will be built from the tidal fence to connect with Raspberry Road. (2) Work plan for new dam construction. For any development within the project that would entail new dam construction, a work plan and schedule containing: (i) A description, including the approximate location, of any field study, test, or other activity that may alter or disturb lands or waters in the vicinity of the proposed project, including floodplains and wetlands, measures that would be taken to minimize any such disturbance; and measures that would be taken to restore the altered or disturbed areas; and An environmental impact assessment will be conducted, including the placement of acoustic devices to gather data for fish, marine mammals, and sediment studies will be required in 18 Turnagain Arm and parts of Cook Inlet. A thorough hydrographic resource assessment will require the installation of tide gauges in several locations of the project area. A preliminary siting investigation will be conducted, including field study of any disturbance of water and land in the vicinity of the proposed project in Turnagain Arm of Cook Inlet. (ii) Proposed schedule (a chart or graph may be used) the total duration of which does not exceed the proposed term of the permit, showing the intervals at which the studies, investigations, tests, and surveys, identified under this paragraph are proposed to be completed. Preliminary Engineering Study een ety ee Study Time Line After Permit Issued Environmental Impact Assessment 0-9 Months Preliminary Siting Investigation 0-3 Months Preliminar ae 0-3 Months Surveys Selection of Design to Fit Site 3-4 Months Public Relations Activities 8-12 Months _Public Relations Activities 00 CC See (iii) | For purposes of this paragraph, new dam construction means any dam construction the studies for which would require test pits, borings, or other foundation exploration in the field. There are no dams in this project. The turbines will sit on foundations in the bottom of the inlet. Test pits and or borings will likely be required as a necessity of the geotechnical survey to determine the anchoring of the turbine modules and the bridge pilings. (3) Waiver. The commission may waive the requirements of paragraph (c) (2) pursuant to Sec. 385.207 of this chapter, upon a showing by the applicant that the field studies, tests, and other activities to be conducted under the permit would not adversely affect cultural resources or endangered species and would cause only minor alterations or disturbances of lands and waters, and that any land altered or disturbed would be adequately restored. pL) We will ask for a waiver. (d) Exhibit 3 must contain a statement of costs and financing, specifying and including to the extent possible: (1) The estimated costs of carrying out or preparing the studies, investigations, tests, surveys, maps, plans or specifications identified under paragraph (c) of this section. Feasibility Study Cost Stu Man Hours Estimated Cost sd anions) = Hydrographic Resource 300MH@$150/hr $ 45,000. Assessment Geotechnical Survey 300MH@$150/hr $ 45,000. Selection of Design 200 MH@$150/hr $ 30,000. Post f 100 | $ 45,000. Constr: in Public Relations 100 MH@$150/hr $ 15,000. Total $680,000 (2) The expected sources and extent of financing available to the applicant to carry out or prepare the studies, investigations, tests, surveys, maps, plans or specifications identified under paragraph (c) of this section; and LSCC/Blue Energy has obtained a commitment from an overseas investor for 20% of the project ($500 million) and to help raise the 80% ($2 billion) for construction of this project. Once the government permits are obtained, LSCC/Blue Energy will hire a large U.S. engineering firm, CH2M-Hill to perform the engineering design and sub-contract to a large international construction firm, Fluor, USA, to build this project. Both companies have been contacted by LSCC/Blue Energy to perform for this project and have informed their headquarters at Denver, CO and Irvine, CA and have received a favorable reception. 20 (3) A description of the proposed market for the power generated at the project including. (i) The identity of the proposed purchaser(s) of the power, and any information that is available concerning the revenues to be derived from the sale of the power; or There are seven-electric utilities in the Alaska Railbelt region. All of them have been contacted and have received a copy of the proposal. They have all verbally expressed an interest in buying power from this project. The electric utilities are as follows: UTILITY CO GENERATION JARGE/Kwh FUEL USE PEAK CAPACITY Chugach Electric 480 16¢/Kwh Matanuska Electric O(Purchase CEA) 16¢/Kwh 0 \ ; 183 megawatts — 13¢/Kwh Gas Homer Electric 90 megawatts 24¢/Kwh Gas Golden Valley E 223 megawatts 15¢/Kwh Coal Ft. Wainwright (US Army) 20 megawatts N/A Coal Seward Electric 50 megawatts 16¢/Kwh Coal 3 * Total 1046 megawatts *CO, Emissions for 1048 megawatts create an estimated 100 million tons CO, per year. The use of tidal energy in the Turnagain Arm of Cook Inlet is the best possible use of one of the highest tides in the world for the benefit of the public in providing renewable energy for a region that is facing great expense (estimated at $5 to $7 billion) in building a pipeline from Prudhoe Bay to continue the use of natural gas for heating and electricity in the Railbelt area. The project is also delayed indefinitely by the uncertainty surrounding two potential gas pipelines proposed for transporting gas from Prudhoe Bay to Canada. Even if it is built, the debt service of 5 to $7 billion will cause $300 to $420 million per year plus at least $200 million for operation and maintenance cost. The cost of buying natural gas from the producer to be paid by the users at $1500/household on top of existing high rate of $3000/year would amount 21 to a 50% increase in gas charges per household. That would add up to $4500/year just for heating and the same amount for a 50% increase in the electricity bill, bringing it to $4,000/year. The ‘total would amount to $8,500/year for heat and electricity. By using tidal power at 6¢ to 8¢ per kwh, a typical household monthly charge will go down to $45 to $60/month or $600/year. The availability of cheap excess electricity can be used to attract industries to Alaska such as mining, aluminum smelting, zinc smelting, and petrochemical industries. (ii) If the applicant proposed to utilize the power output, the size of the applicant’s power system, system peak demand and annual energy requirements, and the number of customers served by the applicant. The Little Susitna Construction Co., Inc. and Blue Energy of Canada are not electric utilities, and plan to sell the electricity produced to Railbelt utilities or industrial customers in the area. A new public company will be formed to own and operate the tidal power generation facility, and electricity will be sold wholesale to the seven utilities and other industrial customers in the Railbelt area. LSCC/Blue Energy will also provide an open season for the six utilities to sign up and to own a percentage of the project. If the utilities decide to own the project, they can form a non-profit corporation to own and operate the project. (e) Exhibit 4 must include a map or series of maps, to be prepared on United States Geological Survey topographic quadrangle sheets or similar topographic maps of a State agency, if available. The maps need not conform to the precise specifications of Sec. 4.39(a) and (b). If the scale of any base map is not sufficient to show clearly and legibly all of the information required by this paragraph, the maps submitted must be enlarged to a scale that is adequate for the purpose. (If Exhibit 4 comprises a series of maps, it must also include an index sheet showing, by outline, the parts of the entire project covered by each map of the series) The maps must show 22 (1) The location of the project as a whole with reference to the affected stream or other body of water and, if possible, to a nearby town or any permanent monuments or objects that can be noted on the maps and recognized in the field; See attached Figure 3. The project is located on the Turnagain Arm of Cook Inlet between Possession Point of North Kenai and Fire Island. (2) The relative location and physical interrelationships of the principal project features identified under paragraph (b) of this section Two control buildings, one located on Kenai Peninsula Borough land along the coastal area near Kenai and the other located in the Raspberry Rd. area in Anchorage will be two story buildings, 60’ X 100’ for a total of 1200 sq. ft. of space. They will be connected by a pair of transmission lines across the tidal fence in Turnagain Arm of Cook Inlet and connect to the Homer Electric Association grid on the Kenai side and to the Chugach Electric grid on the Anchorage side. From there, power can be available for the electrical grid running from Homer, AK to Fairbanks, AK. (See Figure 4, 5.) (3) A proposed boundary for the project enclosing: (i) All principal project features identified under paragraph (b) of this section, including but not limited to any dam, reservoir, water conveyance facilities, power plant, transmission lines, and other appurtenances; if the project is located at an existing Federal dam, the Federal dam and impoundment must be shown, but may not be included in the project boundary; See Figures 5 and 6. 23 (ii) Any non-Federal lands and any public lands or reservations of the United States (see 16 U.S.C. 796 (1) and (2)) necessary for the purposes of the project. To the extent that those public lands or reservations are covered by a public land survey, the project boundary must enclose each of and only the smallest legal subdivisions (quarter-quarter section, lots, or other subdivisions, identified on the map by subdivision) that may be occupied in whole or in part by the project. Project designs and availability of land will determine land we will use on North Kenai Possess Point for power transition to Homer Electric Association. No Federal land is involved. (See Figures 3,4, 5, and 6.) Adjacent CIRI lands and National Kenai Wilderness lands will not be involved in the project. All land involved on the Anchorage side is owned by the Municipality of Anchorage or is owned privately. There is no federal land involved. (4) Areas within or in the vicinity of the proposed project boundary which are included or have been designated for the study for inclusion in the National Wild and Scenic Rivers System; and (5) Areas within the project boundary that, under the provisions of the Wilderness Act have been: (i) Designated as wilderness area. This project site is not designated as wilderness area, although the transmission line and control building will be on Kenai Peninsula Borough land adjacent to the Kenai National Wilderness. The project is near the major population area of Anchorage and Kenai, Alaska. (ii) Recommended for designation as wilderness area. The proposed site is not recommended for designation as wilderness area. (iii) Designated as wilderness study area. The proposed site is not recommended for designation as wilderness study area. 24 This application for a preliminary permit for a tidal project in Turnagain Arm of Cook Inlet near Anchorage, AK is executed in the State of Alaska, Borough of the Municipality of Anchorage. By: Dominic S.F. Lee, P.E., President and CEO of the Little Susitna Construction Co., Inc., 821N Street, Suite 207, Anchorage, AK 99501, being duly sworn, deposes and says that the contents of this application are true to the best of his knowledge or belief. The undersigned applicant has signed the application this_ 2% day of 2009. Subscribed and sworn to before me, a [Notary Public, or title of other official authorized by the state to notarize documents, as appropriate] of the State of Alaska this day of 2< —\« MLN 2004. Seal STATE OF ALASKA NOTARY PUBLIC e Anna Konopka My Commission Expires April 6, 2013 Qurnnn ae Lanna poo (Notary Public 25 PROJECT SCHEDULE TASK YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 PRELIMINARY PERMIT | APPLICATION CONSTRUCTION LICENSE APPLICATION Jr macnn ae ENGINEERING DESIGN T CONSTRUCTION COMMISSION TO OPERATION farrascrevencencnpa sins | 26 ATTACHMENTS 27 Infrastructure: Fairbanks to Kodiak e | Tidal Electric Generation Potential | | | 13-25 ™ 75-100 | | | © 25-50 ™ 100-220 = 50-75 | | Wave Power Potential Galena® Fairbanks | kWim e ‘ | 26-30 (BB 40-50 Ro Mss a - | Tok ¢ Cairn Point . Knik Arm Fire Island Upper Cook Inlet @Palmer Pt Possessioy Wasilla North Foreland ———~ Anchorage © Valdez The Forelands———™ _Kenal/ Soldotna Harriet Point" ~ East OF Kalgin Island “—~cape Ninkichik Bainbridge Passage ; i : ham e Homer ae North Inian Pass Worth Passage (Icy Strait) Chugach Pe ¢s Point Bn POSSEGe Juneau Cape Current Narrows — ‘South Passage (Icy Strait) ‘South Inian Pass “ Kootzhanoo Inlet | Sergius Narrows Turn Point eG. lt Sitka South, ‘ Spike Rock Whale Passage Kodiak Ph rate) Tonowek fi a TURNAGAIN ARM . PROJECT LOCATIONS Figure 2 160 7c a \ || U.S. Kenai National Wildlife Refuge \ Land Ownership Map In Vicinity of Project e = | ‘ a eli pa re eS ~<A la - > A~h N 0505 i we \% Rw Ay en} ar ee Z a v oe Rae ~ Ri re ks ol rT Tw Nikiski / CG e Salamatof ~~ KENAI R s i ] © Kalgin } : es bs Island a | \ BY me < Kaigin Istant Cape Kasilot Ve as Pe = Sy Gita Habitat Area ita | Se. | i Te Le, ak bd a my ulti oo Neha Loe Ps WN | | Feo Wey oy : a‘ Kenai Peninsula Borough Land | Chugach National Forest . Municipality of Anchorage —t PA Native Corporate Land (Cook Inlet Region Inc. - CIRI) | ANCHOR Tidal Fence Project Includes Control Buildings and Transmission Line LEGEND J Starting Point of Transmission Line from Project W __ Transmission Line, 2 Sets of 230 KV in 300 Foot Wide K _ Ending Point of Transmission Line to Tie In With Existing Grid Utility Corridor L __ Starting Point of Transmission Line from Project X Transmission Line, 2 Sets 230 KV in 300 Foot Wide M __ Ending Point of Transmission Line to Tie In With Existing Grid Utility Corridor P Control Building, Kenai Side Y Existing Electrical Grid R Control Building, Anchorage Corridor Z Project Area : RR ume eh | Figure 5 Croker ANAT SETS hxcosd Pas | CO! ATES J W150° - 28'- 0", N61°- 0'- 24" M_ W149°- 54'- 0", N61° - 9' - 36" K = W150° - 15'- 0", N60° - 46' - 12" P —-W150° - 30'- 0", N61° - 0' - 42" L W150°- 4'- 10", N61°- 9! - 36" R_ W150°- 24'- 0", N61°- 9! - 48" ” a i “Ld 1D MEAL ~ n | 5 - vA 4 = % \ = Sais mene 4s BMH 75 Pe * ordinates : =¢ - es Z : 7 | SF O- 9 95 } a kt . A. W150°-28'-0" N61"-0'-48" yA } ND EN A B. W150°- 28-0” N61°-2’-12” eS he 122 707 /¢—- W150"-20’-0 N61"-7’-12” . | ; z ; } \ pp. —- W150°-10’-0"_ N61"-7'-12" a wen SOL 3NO ON eee S013 NOON cE. _wis0'-4’-10" Né1"-9’-48” SO13NGOS A" sou lei Te °. (F. W150°-3’-0" N61"-8'-48" a oo CL) tea Po Ag ‘ G. __ W150"-10’-0"_N61"-0'-0" a f , Take - w150"-17'-0" N61"-0'-0" “ otetinel gh j 1. W150°-23’-0" N61"-2'-26" ae . } Waso"-28-0" N62'-0'-24" 1 iW t = | K. t ci = t a W150°-15’-0” N60°-46’-12” BRED EIADSRIAT SWRI 0 TOY } S01 2NODMS i | Say | | lee Sate 7 —.. PROJECT AREA REQUEST Approx. 65.4 Sq. Miles ee slngaw b/ soiNoosy Pu iNoosn A i ac ~ £ ~ ~ ~~, Figure 6 NL PROPOSED STATE DEPARTMENT OF TRANSPORTATION (DOT) TWO LANE CAUSEWAY DESIGN, BUILT AND OWNED BY STATE OF ALASKA UNITED STATES ALASKA - SOUTH COAST Figure 7