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HomeMy WebLinkAboutREF Status Report January 2018 round 11 print versionJanuary 2018 STATUS REPORT RENEWABLEENERGY FUND akenergyauthority.org ALASKA ENERGY AUTHORITY 813 West Northern Lights Blvd. Anchorage, Alaska 99503 Phone: (907) 771-3000 Fax: (907) 771-3044 Toll Free (Alaska Only)888-300-8534 AEA’s mission: Reduce the cost of energy in Alaska. 813 West Northern Lights Blvd. Anchorage, AK 99503 Phone: (907) 771-3000 Fax: (907) 771-3044 Toll Free (Alaska Only) 888-300-8534 Chignik Lagoon Hydro 2 | RENEWABLE ENERGY FUND STATUS REPORT For the last ten years the REF has provided benefits to Alaskans by assisting communities across the state to both reduce and stabilize the cost of energy. The program has also created jobs, used local energy resources and kept money in local economies. The REF has provided funding for the development of qualifying and competitively selected renewable energy projects in Alaska. The program is designed to produce cost-effective renewable energy for both heat and power. As the program has matured, the quality of the proposed projects has grown, as has the knowledge base for designing, constructing and operating renewable energy projects in Alaska’s diverse climates and terrain. Operational REF projects have an overall benefits cost ratio of 2.64 based on total known project cost, of which State funding is only a portion. Investing in renewable energy provides price stability that will save Alaska communities millions of dollars for decades to come. This status report is provided to the legislature in accordance with the program’s legislative reporting requirements as per AS 42.45.045(d)(3). From 2008 to 2015, appropriations totaling $257 million were issued for Renewable Energy Fund (REF) projects. That State funding was matched with hundreds of millions of dollars in funding from local sources to develop projects designed to reduce and stabilize the cost of energy in Alaska. In 2016 and 2017 there were no State REF appropriations and no new projects were initiated in those years. In recognition of the State’s fiscal challenges, Alaska Energy Authority (AEA), in consultation with the Renewable Energy Fund Advisory Committee (REFAC), made the decision to not release a solicitation for applications in these years, which would have been Rounds X and XI. Instead, the list of projects that was evaluated and recommended for Round IX funding in 2016 was again supplied to the legislature as recommendations for Round X in the 2017 legislative sessions. A slightly modified version of this list is now submitted for use in the 2018 legislative session; the Governor’s proposed FY19 budget refers to this as REF Round X. There are eight projects which have been removed from the list because funding for those projects is no longer being sought. INTRODUCTION CONTENTS: This 2018 status report has two primary parts and an online appendix: 1. A summary analysis of projects funded to date including the performance and savings associated with projects that were generating heat and power at the end of calendar year 2016. (pg. 2-7) 2. A summary of AEA’s recommendations to the Legislature for funding in FY19. The recommendations are largely unchanged from those presented to the legislature in the 2017 report. (pg. 8-12). The online appendix of individual project scopes and statuses for funded projects is available in searchable PDF form on AEA’s website at www.akenergyauthority.org The original evaluations including application summaries and economic evaluations are also available on AEA’s website. 0 5 10 15 20 25 30 35 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Projected 2018 Projected 2019 ProjectedFuel Displaced (diesel equivalent, gallons)MillionsBiomass Heat Pump Heat Recovery Hydro Biofuel Solar Transmission Wind Wind to Heat FUEL DISPLACED (diesel equivalent, gallons)MILLIONSFigure 1 shows continued strong growth in energy generation and fuel displacement. Renewable Energy Fund projects saved Alaska communities 30 million gallons of diesel fuel (equivalent) in calendar year 2016, a savings of just over $60 million. The majority of projects that came online in 2016 were heat projects which now comprise ~45 percent of all operational projects. The largest share of fuel displacement continues to be through wind and hydro projects. 2010 ACTUAL 2011 ACTUAL 2012 ACTUAL 2013 ACTUAL 2015 ACTUAL 2016 ACTUAL 2017 PROJECTED 2019 PROJECTED 25 20 15 10 5 0 Wind / Heat Wind Transmission Biofuel Solar Hydro Heat Recovery Heat Pumps Biomass JANUARY 2018 | 15 RECONNAISSANCE: A preliminary feasibility study designed to ascertain whether a feasibility study is warranted. FEASIBILITY/CONCEPTUAL DESIGN: Detailed evaluation intended to assess technical, economic, financial, and operational viability and to narrow focus of final design and construction. This category also includes resource assessment and monitoring. FINAL DESIGN AND PERMITTING: Project configuration and specifications that guide construction. Includes land use and resource permits and leases required for construction. CONSTRUCTION: Completion of project construction, commissioning, and beginning of operations. This category also includes follow-up operations and maintenance reporting requirements. DIESEL EQUIVALENT GALLON: Most REF communities are displacing diesel fuel (Diesel #2), however some projects displace natural gas, naphtha, propane or Diesel #1. In those instances the displaced fuel is converted to BTUs and then expressed as diesel equivalent gallons for reporting purposes. B/C: The B/C, or benefit/cost ratio is the total net present value of savings over the life of a project divided by the net present value of a project’s total cost. The assumed project life is 50 years for hydro and transmission, 30 DEFINITIONS ANSWERS TO COMMONLY ASKED QUESTIONS years for solar PV and 20-25 years for all others. The B/C is one component of the overall project score; it is possible for a project to score high enough in other areas (e.g. being high cost of energy) to be recommended with a B/C of less than 1. B/C ratios are calculated using best available data appropriate for the project’s development phase. Early phase projects use assumptions based on prior similar experience, late phase projects use refined project models and are much more certain. AEA attempts to be as realistic as possible when using assumptions for early phase projects, while also attempting to avoid rejecting potentially good early-phase projects due to overly conservative assumptions. TECHNICAL/ECONOMIC SCORE: This score is based on a project’s technical and economic viability. The technical score considers resource availability, maturity of the proposed technology, the technical viability of the proposed project, and the qualifications and experience of the project team. The economic score is based on the projected costs and benefits associated with the project including consideration of the future price of fuel, current and future local demand for energy and the ability of the applicant to finance the project to completion. ENERGY COST BURDEN: Household heat and electric energy cost divided by household income. WHAT IMPACT DO REF PROJECTS HAVE ON RATES? It depends. Some electrical projects will lower rates immediately and some may only stabilize rates and keep them from increasing over time due to inflation and changing fuel costs. Heating projects result in immediate and direct fuel savings costs to the building owners. DO POWER COST EQUALIZATION (PCE) COMMUNITIES BENEFIT FROM THE REF? Yes, in a number of ways: 1. Statewide, in PCE communities, about 30 percent of total kWhs sold are eligible for the PCE subsidy. That means that any savings from REF projects are passed directly to the other 70 percent of kWhs sold. Schools and privately owned businesses benefit greatly from reduced cost of electricity. 2. REF projects provide stability in the face of uncertain and often volatile fuel prices. 3. 100 percent of the value created by heat projects stays in the community. 4. REF projects create local employment opportunities and local energy independence. WHICH PROJECTS ARE THE BEST FIT FOR REF FUNDING? • Technically strong • Economically viable • Located in high energy cost communities • Provides public benefit • Matching funds provided HOW MUCH ARE REF PROJECTS REDUCING GREENHOUSE GAS (GHG) EMISSIONS? 2009-2016, an estimated 945,983 metric tons of CO2.2018 PROJECTED 30 2014 ACTUAL 35 The Renewable Energy Fund Advisory Committee is comprised of nine members, five of whom are appointed by the governor to staggered three-year terms, with representation from each of the following groups: • One member from a small Alaska rural electric utility, Meera Kohler, President and CEO of Alaska Village Electric Cooperative (AVEC) • One member from a large Alaska urban electric utility, Lee Thibert, CEO of Chugach Electric Association • One member from an Alaska Native organization, Jodi Mitchell, Vice Chair of Sealaska Board • One member from businesses or organizations engaged in the renewable energy sector, Chris Rose, Executive Director of Renewable Energy Alaska Project (REAP) • One member from the Denali Commission, Kathleen Wasserman, Commissioner • Four remaining members come from the legislature: • Two members of the House of Representatives, appointed by the Speaker of the House of Representatives, Rep. Sam Kito III and Rep. Adam Wool • Two members of the Senate, appointed by the President of the Senate, Sen. Lyman Hoffman and Sen. Anna MacKinnon RENEWABLE ENERGY FUND ADVISORY COMMITTEE In establishing the program, the REFAC worked with AEA to define eligibility criteria for the Renewable Energy Fund grants, to develop methods for ranking projects, and to adopt regulations identifying criteria to evaluate the benefit and feasibility of projects seeking legislative support. The REFAC continues to consult with AEA, offering valuable guidance and policy direction regarding the application and evaluation process, and final funding recommendations. The REFAC was involved in the evaluation and ranking of recommended projects when they were originally forwarded to the legislature for consideration in Round IX. Subsequently, the REFAC met with AEA staff in June of 2016 to receive updates on operating projects and active grants and to discuss a path forward in the absence of a legislative appropriation . In recognition of the State’s fiscal challenges and in an effort to not unduly burden potential applicants the REFAC supported the decision to not issue a request for new applications. With the exception of projects which were removed for various reasons, the same list of ranked recommended projects that were provided to the legislature for FY16 and FY17 funding consideration are again resubmitted for FY18 funding consideration. A total of eight recommended projects have been included in the Governor’s budget for FY18 funding. 14 | RENEWABLE ENERGY FUND STATUS REPORT $0 $10 $20 $30 $40 $50 $60 Millions JANUARY 2018 | 3 Figure 4 shows cumulative grant funding by AEA energy region totaling to $257 million in rounds I-VIII. The three highest recipients to date are Southeast with $60 million, Lower Yukon-Kuskokwim with $36.6 million, and Railbelt with $28.2 million. $0 FUNDED GRANTS BY ENERGY REGION ($ millions) ROUNDS I-VIII FUNDED GRANTS BY ENERGY RESOURCE ($ millions) ROUNDS I-VIII Figure 2 below demonstrates the wide geographic distribution of REF projects across all areas of the state. Most funding is provided to high cost-of-energy communities. Figure 3 shows funding by energy resource, with wind and hydro grants making up just less than 70 percent of total funding. RENEWABLE ENERGY FUND PROJECTS ROUNDS I-VIII Hydro $84.8 Biomass $27.0 Heat Recovery $20.3 Heat Pumps $16.4 Trans- mission $12.5 Ocean/ River $3.9 Solar $0.5 Other $0.1 Wind $91.5 Aleutians Bering Straits Bristol Bay Copper River/Chugach Kodiak Lower Y-K North Slope Northwest Arctic Railbelt Southeast Statewide Y-K/Upper Tanana $10 $20 $30 $40 $50 $60 Meera Kohler Senator Hoffman Senator MacKinnonRep. WoolRep. Kito III Jodi Mitchell Kathy WassermanLee Thibert Chris Rose $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 PV Capital Cost PV Benefits$ MillionsREF CURRENTLY OPERATING PROJECTS Biofuel Biomass Heat Pumps Heat Recovery Hydro Solar Transmission Wind • The present value of the capital expenditures used to build the 68 projects that were operational by the end of year 2016 is $603 million and the present value of benefits is $1,589 million. Based on the present value of capital cost and future estimated benefits, these projects have an overall benefit-cost ratio of 2.64. • For every dollar invested, these projects have an estimated return of $2.64. It is important to note that the REF invested $160 million of total project costs in these 68 projects. The balance was invested from other sources. • The technology with the largest number of generating projects continues to be wind, at 26 percent. This share has declined each year since 2013 when wind projects represented 40 percent of all REF projects. • Biomass projects continue to come online and currently account for 18 percent of all active projects. Heat recovery projects make up an additional 21 percent of operational projects; these projects take heat from diesel powerhouse engines that would otherwise be wasted and put that heat to use in buildings and water systems, displacing thousands of gallons of costly heating fuel. • The large majority of both capital cost and future benefit are from hydroelectric and wind projects. This is because of a handful of relatively large hydro and wind projects in more populated parts of the state including the Railbelt, Kodiak and Sitka. • REF projects that came online or first began reporting performance data in calendar year 2017 include four biomass projects, four heat recovery projects and one hydroelectric project. Renewable Energy Fund Rounds I – VIII Grant and Funding Summary As of January 17, 2018 Round I Round II Round III Round IV Round V Round VI Round VII Round VIII Round IX Totals Applications Received 115 118 123 108 97 85 86 67 52 851 Applications Funded 80 30 25 74 19 23 26 10 - 287 Grants Currently in Place 5 2 3 11 8 10 15 9 - 63 Amount Requested1 ($M) $ 453.8 $ 293.4 $ 223.5 $ 123.1 $ 132.9 $ 122.6 $ 93.0 $ 43.8 $50.0 $ 1,536.1 AEA Recommended ($M) $ 100.0 $ 36.8 $ 65.8 $ 36.6 $ 43.2 $ 56.8 $ 59.1 $ 20.6 $36.1 $ 455.0 Appropriated ($M) $ 100.0 $ 25.0 $ 25.0 $ 26.62 $ 25.9 $ 25.0 $ 22.83 $ 11.54 - $ 261.8 Match Budgeted ($M)5 $ 31.1 $ 4.5 $ 12.4 $ 83.3 $ 9.1 $ 7.8 $ 10.7 $ .3 - $ 153.3 1. Total grant amount requested. 2. $26.6 Million was appropriated for Round IV, and an additional $10.0 million was reappropriated from rounds I, II and III for use in Round IV. 3. $20.0 Million was appropriated for Round VII, and an additional $2.8 million was reappropriated from previous rounds for use in round VII. 4. $9.5 million was reappropriated from Mt. Spurr Geothermal Project (FSSLA 2011 CH5, P137) for Round VIII and $2 million was reappropriated from previous rounds for use in Round VIII. 5. Represents only amounts recorded in the grant document and does not capture all funding needed to complete all phase of the project. 1. Total grant amount requested by all applicants. 2. $26.6 million was appropriated for round IV, and an additional $10 million was re- appropriated from previous rounds for use in round IV. 3. $20 million was appropriated for round VII, and an additional $2.8 million was re- appropriated from previous 4 | RENEWABLE ENERGY FUND STATUS REPORT PERFORMANCE & SAVINGS REF CURRENTLY OPERATING PROJECTS - 2016 GRANT AND FUNDING SUMMARY Rounds I through IX No new funds, applications or funding were received in Round X rounds for use in round VII. 4. $9.5 million was re-appropriated from the Mt. Spurr geothermal project (FSSLA 2011 CH5, P137) for round VIII, and an additional $2.0 million was re-appropriated from previous rounds for use in round VIII. 5. Represents only amounts recorded in active and completed grants, does not capture all funding needed to construct the project. NOTES:$MILLIONSFigure 5 shows the present value (PV) of the 68 projects that are operational at end of 2016. In 2009, Alaska Village Electric Cooperative (AVEC) received a grant from the Alaska Energy Authority under Round II of the Renewable Energy Fund for the design and construction of a wind farm in the community of Shaktoolik. The project cost $2,727,960 and resulted in the construction of two Northern Power Systems 100-kilowatt wind turbines and controls upgrades at the existing diesel power plant. In 2011, a Round V REF grant was awarded to AVEC, working under a Memo- randum of Understanding with Alaska Native Tribal Health Consortium (ANTHC), for the installation of an electric boiler at the Shaktoolik water treatment plant. The electric boiler serves as a secondary load and absorbs excess electricity from the wind-diesel system. This project cost $252,905 with $240,260 provided by the grant and $12,645 as match. Both proj- ects total $2,980,865, of which $2,705,924 was provided by grant and $274,941 provided as match. At the time of the original AVEC application for a wind farm in Shaktoolik, wind-diesel systems were in early development with only a handful of projects installed throughout the world. Though it was not completed in time to affect the Shaktool- ik wind farm design, the AEA Wind Program performed analysis on earlier constructed projects in an effort to learn from those systems and incorporate these lessons into new projects. A primary finding was the surprising amount of curtailment being implemented by system operators to avoid issues caused from the production of excess electricity on an islanded microgrid. While energy storage options have been, and are still being, considered, the most cost effective option to handle excess renewable electricity is through the installation of an electric boiler that can be used to provide heat. RENEWABLE ENERGY FUND SUCCESS STORY REF AWARDS | $2,705,924 MATCHING FUNDS | $274,941 TOTAL PROJECT COST | $2,980,865 EXPECTED PROJECT LIFE | 20 years SHAKTOOLIK WIND PROJECT This two-phased project has produced nearly 1.6 million kilowatt-hours and offset more than 100,000 gallons of diesel. After the completion of this research, AVEC worked with ANTHC to iden- tify projects in Chevak, Gambell, Mekoryuk, and Shaktoolik. Shaktoolik is highlighted for this case study because both the wind farm and secondary load project were funded through the REF and therefore the data neces- sary for analysis is available. From an assessment of the wind resource the Shaktoolik wind farm is predicted to have a 420,000 kilowatt hour annual energy production. In the first year, the production was only 52% of this goal. While start-up and system commissioning may have played a role in the early low production numbers, the wind farm has, on average, produced 85% of its goal since the installation of the secondary load. In 2016 the wind farm exceeded its production goal for the first time. While the secondary load uses the electricity to make heat, not all of the in- creased wind farm production goes to this use. The addition of the second- ary load increases the capability and reliability of the overall system and this leads to greater confidence by the system operators, resulting in less curtail- ment. The average increase in gross wind production was 160,000-kilowatt hours and 80,000, meaning that 54 percent of the increase was used for non-heat uses with the remainder being used for heat. Through 2016 the project has produced 1,580,098 kilowatt-hours and offset more than 100,000 gallons of diesel for power generation and heating oil. JANUARY 2018 | 13 Shaktoolik Ariel View Shaktoolik Wind Turbines The story of developing successful biomass projects on Prince of Wales (POW) Island is an example of how the State can work successfully with local governments and school districts, the federal government, local engineering firms and American manufacturers to advance local economic and product development. Leveraging the experience gained from pre-REF AEA- and US Forest Service-funded studies and projects, the Southeast Island School District (SEISD) and the City of Craig have been successful in turning POW’s renewable resources into local development opportunities through REF grants. The REF has assisted POW communities to perform feasibility, design, and construction in seven communities—Craig, Thorne Bay, Hollis, Coffman Cove, Naukati Bay, Whale Pass, and Hydaburg. While the biomass projects have reduced local consumption of heating oil (15,000 gallons a year in the Thorne Bay School alone), this reduction is a small part of the local benefit. Local sawmills and firewood cutters have new customers for their products, with the money paid to heat buildings staying on the island. RENEWABLE ENERGY FUND SUCCESS STORY JANUARY 2018 | 5 REF AWARDS | $1.6 million MATCHING FUNDS | $459,704 TOTAL PROJECT COST | $2.1 million EXPECTED PROJECT LIFE | 20 + years PRINCE OF WALES BIOMASS PROJECT The project has assisted in the development and construction of biomass boilers in seven schools displacing heating fuel, providing local jobs and supporting local food production. The REF-funded Thorne Bay School wood-fired boiler project has led to six part-time jobs at the school to support the biomass boiler. The REF has also assisted the SEISD in realizing its vision of being able to convert firewood into local, healthy vegetables for their schools. Six SEISD schools have installed or plan to install greenhouses. The greenhouses have been productive enough to provide vegetables for the school cafeteria and for sale in the community. The success of the POW biomass systems cannot be separated from the vegetables grown in the schools’ biomass-heated greenhouses. The REF projects on POW have led to improved products to meet the needs and conditions seen in rural Alaska. Working with GARN, a Minnesota-based wood boiler manufacturer, AEA helped to develop a “boiler-in-a-box” module which allows for simple installation, only requiring that piping and electrical connection be made on site. The reduction in the complexity and soft-costs of biomass projects that AEA has promoted will make it easier and cheaper for future communities to use their renewable resources. In addition to providing the benefits associated with demand-side projects, the REF also assisted the City of Craig in turning some of the 13,000 tons of wood waste produced at a local sawmill into fuel for biomass boilers, reducing waste and keeping more money and jobs in the community. Thorne Bay students show off greenhouse produce Project Name Applicant Energy Source B/C Ratio State- wide Rank Project Cost Through Construction Applicant Grant Requested Applicant Match Offered Phase(s) Recomnd Funding Elfin Cove Hydroelectric Permitting Elfin Cove Utility Commission Hydro 1.22 9 $3,705,000 $88,000 $22,000 Design $88,000 Shungnak Wind-Diesel Conceptual Design Native Village of Shungnak Wind 1.04 10 $5,598,500 $135,000 $39,000 Feas $135,000 Bethel Power Plant Heat Recovery Module Alaska Village Electric Coop Heat Rec.2.16 11 $8,233,369 $2,555,489 $283,943 Constr $2,555,489 Old Harbor Hydro Geotech & Final Design Alaska Village Electric Coop Hydro 1.38 13 $9,317,500 $1,092,500 $57,500 Design $792,500 Indian River Hydroelectric Project - Construction Tenakee Springs Electric Hydro 0.94* 15 $5,473,280 $809,000 $1,115,280 Constr $809,000 Cosmos Hills Hydro Design & Permitting NANA Regional Corporation Hydro 1.08 16 $50,797,871 $341,335 $37,200 Design $341,335 Sitka Wastewater Plant Effluent Heat Pump City and Borough of Sitka Heat Pump 1.13 19 $826,067 $667,000 $113,000 Design, Constr $667,000 Yerrick Creek Hydro Construction Upper Tanana Energy Hydro 1.23 20 $20,744,264 $4,000,000 $15,000,000 Constr $3,925,000 Scammon Bay Hydroelectric Project City of Scammon Bay Hydro 1.25 23 $4,283,056 $305,000 $3,050 Feas $90,000 Huslia Water & Clinic Biomass Boiler City of Huslia Biomass 0.72* 24 $496,526 $491,610 $4,916 Design $53,116 False Pass Hydro Feasibility & Conceptual Design City of False Pass Hydro 1.87 25 $4,380,000 $187,000 $33,000 Feas $187,000 St. Paul Island 80% Renewable Energy Feasibility TDX Power, Inc.Other, Wind 1.66 26 $5,731,500 $265,200 $66,300 Recon, Feas $265,200 Ambler Washeteria and City Office Biomass Heating City of Ambler Biomass 1.06 27 $484,691 $429,892 $54,799 Design, Constr $429,892 Atqasuk Transmission Line Design and Permitting North Slope Borough Trans, Other 2.02 28 $32,840,509 $2,017,818 $201,782 Design $2,017,818 Saxman Low-Rent Multifamily Air Source Heat Pump Tlingit-Haida RHA Heat Pump 0.93* 29 $438,341 $296,038 $213,193 Design, Constr $296,038 Unalaska Water Treatment Inline Micro Turbines City of Unalaska Hydro 1.24 30 $1,340,000 $1,100,000 $240,000 Feas, Design $144,000 Ketchikan High School Biomass Boiler Ketchikan Gateway Borough Biomass 1.33 31 $1,365,890 $1,251,000 $0 Constr $1,251,000 Klawock School Biomass Fuel Boiler Project Klawock City School District Biomass 1.38 32 $858,556 $833,556 $25,000 Design $111,986 Crater Lake Power and Water Project Cordova Electric Cooperative Hydro, Storage 0.91* 33 $17,306,696 $1,227,000 $420,680 Design $1,227,000 Grant Lake Hydroelectric Project Kenai Hydro LLC Hydro 1.10 35 $58,936,366 $4,000,000 $875,528 Design $4,000,000 Ouzinkie Hydroelectric Power Project City of Ouzinkie Hydro 0.73* 36 $4,603,385 $397,427 $4,014 Design, Constr $397,427 Kaktovik Wind Diesel Design North Slope Borough Wind 0.79* 38 $7,606,795 $440,000 $44,000 Design $440,000 Ketchikan Schools Recreation Heating Plant Ketchikan Gateway Borough Biomass N/A†39 $2,600,000 $220,000 $0 Feas $40,000 Project Cost Recommendation Blue cells indicate a standard electric generation application Orange cells indicate a heat project application 12 | RENEWABLE ENERGY FUND STATUS REPORT Students help split wood for biomass boiler in Thorne Bay REF RECOMMENDED PROJECTS OUTSIDE THE FY19 GOVERNOR’S BUDGET Renewable Energy Fund Round IX Final Recommended Applications and Funding CountEnergy Region ID Project Name Applicant Energy Source B/C Ratio Impacted Pop. Household Energy Cost Tech/ Econ Score State- wide Rank Project Cost Through Construction Applicant Grant Requested Applicant Match Offered Recommended Phase(s) AEA Recomnd Recommended Funding Funding in Gov. Budget 1 Copper River/Chugach 1226 Fivemile Creek Hydroelectric Project Chitina Electric Inc. (CEI) Hydro 1.71 116 $12,269 75.67 1 $6,589,090 $3,400,000 $2,600,000 Constr Full $3,400,000 $3,400,000 2 Bering Straits 1234 Wales Water System Heat Recovery City of Wales Heat Recovery 1.44 146 $17,269 72.50 3 $653,277 $650,047 $6,566 Design, Constr Full $650,047 $650,047 3 Aleutians 1245 Adak Hydro Power Generator TDX Adak Generating, TDX Hydro 1.75 247 $14,961 59.50 4 $1,750,000 $294,102 $126,044 Feas Partial $19,600 $19,600 4 Bering Straits 1238 Koyuk Water System Heat Recovery City of Koyuk Heat Recovery 1.06 321 $18,742 61.50 8 $695,269 $688,386 $6,884 Design Partial $90,922 $90,922 5 Bering Straits 1223 Shishmaref Wind Feasibility & Conceptual Design Alaska Village Electric Coop Wind 0.93* 607 $15,812 52.50 18 $2,529,400 $152,000 $8,000 Feas Full SP $152,000 $152,000 6 Railbelt 1242 Heat Pump System for City of Seward City of Seward Heat Pump 1.97 2,768 $9,005 83.17 5 $955,458 $725,000 $125,000 Design, Constr Full $725,000 $725,000 7 Southeast 1244 IPEC Gunnuk Creek Hydro Rehab in Kake Inside Passage Electric Coop Hydro 2.23 1,913 $10,561 73.00 6 $5,715,000 $3,920,000 $1,545,000 Constr Full SP $3,920,000 $3,920,000 8 Lower Yukon-Kuskokwim 1224 Mountain Village-St. Mary's Wind Intertie Alaska Village Electric Coop Trans, Wind 1.00 1,524 $12,362 66.00 7 $6,196,000 $3,196,000 $3,000,000 Design, Constr Full SP $3,196,000 $2,042,431 8 Sub Totals, Recommended Projects in Governor's Budget $25,083,494 $13,025,535 $7,417,494 $12,153,569 $11,000,000 Recommended Projects Project Cost Recommendation PROJECT DESCRIPTIONS - GOVERNOR’S FY19 BUDGET Fivemile Creek hydro is a 300 kW run-of-river project annually displacing more than 500 MWhs of diesel electrici- ty generation and an additional 18,000 gallons of heating oil. The project is estimated to displace 3.5 million gallons of petroleum fuel over its 50 year life. Wales heat recovery will capture heat that is generated by diesel power generation and send that heat to the water treatment plant and community washeteria. The project will displace more than 9,700 gallons of heating fuel annu- ally with lifetime savings estimated at nearly 200,000 gallons over its 20 year life. Adak hydro feasibility project will evaluate the potential for a 75-90 kW power recovery turbine in a community water supply line. If feasible the project would generate 330-760 MWhs of power, displacing just under 26,000 gal- lons of diesel annually and an estimated 1.3 million gallons over its 50 year life. Koyuk heat recovery will capture heat that is generated by diesel power generation and send that heat to the water treatment plant and the community washeteria. The project will displace nearly 12,000 gallons of heating fuel an- nually and nearly 240,000 gallons over its 20 year life. Shishmaref wind feasibility project will evaluate the potential for a 200 kW wind project. Preliminary estimates for a project this size in this community are displacement of roughly 40,000 gallons of diesel annually and nearly 800,000 over it’s 20 year life. Seward seawater heat pump project will use a ground source heat pump in the tidal zone to capture the warm sub- surface ocean water that inundates the gravel. The heat pump will serve a district loop providing heat to five public buildings, displacing an estimated 20,020 gallons of diesel annually and more than 1 million gallons over its 50 year life. Gunnuk Creek is a 500 kW hydro project that will expand and rehabilitate an existing 7 kW hydro project that makes use of the water supply dam and hatchery facilities in the community of Kake. The project has estimated displacement of more than 110,000 gallons of diesel annually with lifetime displacement of more than 5.5 million gallons of diesel. Mt. Village - St. Mary’s is an intertie project connecting the community of Mt. Village to St. Mary’s renewable wind energy. The project is estimated to displace roughly 60,000 gallons of diesel annually and more than 1.2 million gallons over its 20 year life. Blue cells indicate a standard electric generation application Orange cells indicate a heat project application 6 | RENEWABLE ENERGY FUND STATUS REPORT JANUARY 2018 | 11 2 3 4 5 14                    15 16 17 Technology  Type Fuel  Displaced Grantee Project Name Start  date Electrical  (MWh) Thermal  (MMBtu) Diesel (Gal x  1000) Value  ($ x 1000) Electrical  (MWh) Thermal  (MMBtu) Diesel (Gal x  1000)  Value  ($ x 1000)   Electrical  (MWh)  Thermal  (MMBtu) Diesel (Gal x  1000) Value  ($ x 1000) 1 Hydro Natural Gas Chugach Electric Association, Inc.Stetson Creek Diversion/Cooper Lake 08/15 2,994           ‐               401               186               6,020           ‐               806               253               9,014               ‐               1,207            439                2 Hydro Diesel Inside Passage Electric Co‐op Gartina Falls ‐ Hoonah 07/15 568               ‐               38                 124               1,188           ‐               80                 171               1,756               ‐               119                294                3 Hydro Diesel Chignik Lagoon Power Utility Packers Creek 03/15 562               ‐               52                 235               645               ‐               60                 218               1,207               ‐               112                453                4 Hydro Diesel City of Akutan Akutan Hydro 12/14 11                 ‐               1                   5                   110               ‐               13                 43                 121                  ‐               14                  48                  5 Hydro Diesel City and Borough of Sitka Blue Lake Expansion 11/14 59,272         ‐               4,559           14,594         69,041         ‐               5,311           12,852         137,068          ‐               10,544          29,601          6 Hydro Diesel City of Ketchikan Whitman Lake 10/14 8,762           ‐               674               2,851           7,650           ‐               588               1,521           18,899             ‐               1,454            5,181            7 Hydro Diesel Kodiak Electric Assoc.Terror Lake 01/14 118,044       ‐               8,432           34,233         124,484       ‐               8,892           25,430         251,833          ‐               17,944          62,424          8 Hydro Diesel Cordova Electric Co‐op Humpback Creek 07/11 3,074           ‐               236               586               3,731           ‐               287               546               18,200             ‐               1,395            4,319            9 Hydro Diesel Gustavus Electric Falls Creek 07/09 2,149           ‐               165               515               2,237           ‐               172               572               14,289             ‐               1,064            3,790            10 Hydro Diesel City of Atka Chuniixsax Creek 12/12 381               ‐               29                 153               321               ‐               25                 114               1,378               ‐               106                550                11 Hydro Diesel INNEC Tazimina Hydroelectric Project 01/16 ‐               ‐               ‐               ‐               3,540           ‐               264               1,236           3,540               ‐               264                1,236            12 Hydro Diesel Copper Valley Electric Association Allison Lake Hydro 09/16 ‐               ‐               ‐               ‐               881               ‐               71                 187               881                  ‐               71                  187                13 Landfill Gas Nat Gas Municipality of Anchorage Anchorage Landfill Gas 08/12 50,032         ‐               4,783           1,079           42,517         ‐               4,065           764               195,430          ‐               18,651          8,309            14 Solar PV Diesel Alaska Power Company Eagle Solar Array Project 01/16 ‐               ‐               ‐               ‐               20                 ‐               2                   4                   20                    ‐               2                    4                    15 Solar PV Diesel AK Village Electric Co‐op Kaltag Solar 10/12 8                   ‐               1                   2                   9                   ‐               1                   2                   34                    ‐               3                    9                    16 Transmission Diesel AK Electric Light & Power Snettisham ‐ Juneau 01/14 936               ‐               72                 112               936               ‐               72                 157               2,807               ‐               216                381                17 Transmission Diesel Alaska Power & Telephon North Prince of Wales Intertie 09/11 1,352           ‐               104               289               1,222           ‐               94                 194               5,745               ‐               406                1,243            18 Transmission Diesel Nome Joint Utility System Banner Wind Transmission 10/10 1,650           ‐               102               307               982               ‐               60                 151               8,130               ‐               488                1,490            19 Wind Diesel Nome Joint Utility System Banner Peak Wind Expansion 08/13 1,642           ‐               100               304               1,573           ‐               96                 240               5,110               ‐               312                932                20 Wind Diesel Northwest Arctic Borough Buckland, Deering, Noorvik Wind Farm 01/16 ‐               ‐               ‐               ‐               166               ‐               13                 45                 166                  ‐               13                  45                  21 Wind Naphtha Golden Valley Electric Assoc.Eva Creek 10/12 72,639         ‐               5,115           8,324           77,320         ‐               5,445           7,319           306,439          ‐               21,580          43,992          22 Wind Diesel Kotzebue Electric Association Kotz Wind‐Battery‐Diesel 05/12 2,511           ‐               171               542               3,179           ‐               216               587               13,087             ‐               890                2,936            23 Wind Diesel AK Village Electric Co‐op Shaktoolik Wind 04/12 283               ‐               22                 84                 329               ‐               25                 79                 1,263               ‐               97                  363                24 Wind Diesel AK Village Electric Co‐op Emmonak/Alakanuk Wind 09/11 327               ‐               23                 84                 698               ‐               49                 162               2,584               ‐               183                681                25 Wind Diesel AK Village Electric Co‐op Quinhagak Wind Farm 11/10 403               ‐               31                 115               690               ‐               53                 170               3,028               ‐               228                858                26 Wind Diesel AK Village Electric Co‐op Mekoryuk Wind Farm 11/10 180               ‐               13                 48                 118               ‐               8                   29                 1,058               ‐               72                  268                27 Wind Naphtha Alaska Environmental Power Delta Area Wind Turbines 09/10 2,013           ‐               130               351               1,682           ‐               109               271               10,727             ‐               674                1,726            28 Wind Diesel Kodiak Electric Assoc.Pillar Mountain Wind 09/10 29,107         ‐               2,050           5,417           29,314         ‐               2,064           3,728           153,999          ‐               10,839          31,810          29 Wind Diesel AK Village Electric Co‐op Toksook Wind Farm 08/09 168               ‐               12                 46                 668               ‐               49                 175               1,827               ‐               131                479                ELECTRICAL PROJECTS SUBTOTAL 359,069       ‐               27,317         70,583         381,268       ‐               28,989         57,221         1,169,639       ‐               89,077          204,046        30 Hydro Diesel City of Pelican Pelican Hydro Upgrade 03/13 1,298           ‐               93                 415               1,140           ‐               81                 168               4,151               431              301                1,152            31 Biomass Diesel AK Gateway School District Tok Wood Heating 10/10 306               6,136           59                 152               170               7,171           69                 200               745                  32,593         308                892                32 Heat Recovery Diesel City of Unalaska Unalaska Heat Recovery 09/14 470               ‐               36                 80                 569               ‐               44                 76                 1,119               ‐               86                  177                33 Wind/Heat Diesel Tuntutuliak Comm Svs Assoc.Tunt Wind‐Diesel Smart Grid 01/13 215               128               17                 64                 162               347               13                 37                 727                  1,044           56                  216                34 Wind/Heat Diesel Kwigillingok Power Company Kwig Wind‐Diesel Smart Grid 02/12 464               238               38                 126               379               200               31                 92                 1,102               743              90                  309                35 Wind/Heat Diesel Aleutian Wind Energy Sand Point Wind 08/11 974               360               72                 326               736               ‐               54                 246               4,574               773              336                1,537            36 Wind/Heat Diesel Puvurnaq Power Company Kong Wind‐Diesel Smart Grid 12/10 330               435               29                 96                 263               441               24                 72                 1,502               2,053           134                495                37 Wind/Heat Diesel Unalakleet Valley Electric Co Unalakleet Wind Farm 12/09 972               228               72                 273               877               ‐               63                 189               6,513               779              468                1,631            ELECTRICAL & HEAT PROJECTS SUBTOTAL 5,029           7,525           416                1,532           4,295           8,159           379                1,081           20,433             38,416         1,778            6,409            38 Wind Diesel AK Village Electric Co‐op Chevak Surplus Wind to Heat Water 07/15 ‐               121               1                   6                   ‐               73                 1                   4                   ‐                   195              2                    10                  39 Wind Diesel AK Village Electric Co‐op Gambell Surplus Wind to Heat Water 07/15 ‐               174               2                   6                   ‐               85                 1                   4                   ‐                   294              3                    11                  40 Biomass Diesel Ketchikan Gateway Borough Ketchikan Gateway Borough Biomass Heat 08/16 ‐               ‐               ‐               ‐               ‐               690               6                   4                   ‐                   690              6                    4                    42 Biomass Diesel City of Kobuk Upper Kobuk River Biomass 01/16 ‐               ‐               ‐               ‐               ‐               380               4                   24                 ‐                   380              4                    24                  43 Biomass Diesel Lake and Peninsula Borough Lake and Pen Wood Boilers 01/15 ‐               45                 0                   2                   ‐               54                 1                   3                   ‐                   100              1                    5                    44 Biomass Diesel IRHA Wood Heating Interior Commmunities 01/15 ‐               272               3                   10                 ‐               1,560           14                 73                 ‐                   1,832           17                  83                  45 Biomass Diesel Mentasta Traditional Council Mentasta Community Facility Heat 10/14 ‐               542               5                   22                 ‐               1,084           10                 18                 ‐                   1,626           15                  39                  46 Biomass Diesel City of Tanana Tanana City‐Tribe Biomass 01/14 ‐               1,360           12                 61                 ‐               920               8                   38                 ‐                   4,252           38                  146                47 Biomass Diesel Southeast Island School District Thorne Bay School Biomass 01/13 ‐               2,121           19                 78                 ‐               1,128           10                 14                 ‐                   4,882           44                  128                48 Biomass Diesel Native Village of Eyak Cordova Wood Processing 12/11 ‐               840               7                   28                 ‐               1,066           8                   22                 ‐                   5,986           48                  170                49 Biomass Diesel Chilkoot Indian Association Haines Central Wood Heating 10/11 ‐               141               2                   3                   ‐               ‐               ‐               ‐               ‐                   852              8                    19                  50 Biomass Diesel Delta/Greely School District Delta Wood Chip Heating 09/11 ‐               3,339           32                 105               ‐               1,828           18                 29                 ‐                   16,865         162                501                51 Biomass Diesel Gulkana Village Council Gulkana Central Wood Heating 10/10 ‐               198               2                   6                   ‐               609               6                   2                   ‐                   4,607           43                  125                52 Heat Pumps Diesel Cook Inlet Housing Authority Seldovia House Ground Source Heat Pump 01/16 ‐               ‐               ‐               ‐               ‐               297               3                   4                   ‐                   297              3                    4                    53 Heat Pumps Diesel City of Seward Sealife Center Seawater Heat Pump 11/11 ‐               4,179           40                 105               ‐               3,446           33                 28                 ‐                   17,955         173                401                54 Heat Pumps Diesel City and Borough of Juneau Airport Ground Source Heat Pump 05/11 ‐               6,400           46                 153               ‐               6,400           46                 145               ‐                   36,117         266                899                55 Heat Pumps Diesel City and Borough of Juneau Aquatic Cntr Ground Source Heat Pump 04/11 ‐               4,621           39                 68                 ‐               3,224           27                 35                 ‐                   18,189         154                355                41 Heat Recovery Diesel Venetie Village Council Venetie District Heating 02/16 ‐               ‐               ‐               ‐               ‐               435               5                   38                 ‐                   435              5                    38                  56 Heat Recovery Diesel Native Village of Quinhagak Heat Recovery Water Plant & Washeteria 12/15 ‐               ‐               ‐               ‐               ‐               988               9                   44                 ‐                   988              9                    44                  57 Heat Recovery Diesel City of Marshall Heat Recovery ‐ Marshall Water Plant & Store 09/15 ‐               ‐               ‐               ‐               ‐               1,703           15                 80                 ‐                   1,703           15                  80                  58 Heat Recovery Diesel Atmautluak Traditional Council Atmautluak Washeteria Heat Recovery 08/15 ‐               ‐               ‐               ‐               ‐               134               1                   8                   ‐                   134              1                    8                    59 Heat Recovery Diesel City of Saint Paul Electric Utility Saint Paul Fuel Economy Upgrade 02/15 ‐               5,680           51                 265               ‐               4,800           43                 157               ‐                   10,480         95                  422                60 Heat Recovery Diesel Sleetmute Traditional Council Heat Recovery to Water Plant 11/14 ‐               176               2                   9                   ‐               399               4                   19                 ‐                   575              5                    29                  61 Heat Recovery Diesel City of Savoonga Savoonga Heat Recovery ‐ Water Plant 10/14 ‐               ‐               ‐               ‐               ‐               1,214           9                   46                 ‐                   1,214           9                    46                  62 Heat Recovery Diesel City of Ambler Ambler Heat Recovery 10/13 ‐               494               5                   26                 ‐               456               5                   26                 ‐                   1,466           15                  111                63 Heat Recovery Diesel North Slope Borough Point Lay Heat Recovery 08/13 ‐               1,555           15                 21                 ‐               1,104           10                 18                 ‐                   4,812           45                  137                64 Heat Recovery Diesel Inside Passage Electric Co‐op Hoonah Heat Recovery Project 08/12 ‐               4,099           39                 167               ‐               20,279         195               565               ‐                   35,084         337                1,172            65 Heat Recovery Diesel City and Borough of Wrangell Wrangell Hydro Electric Boilers 02/11 ‐               7,588           78                 25                 ‐               2,494           26                 82                 ‐                   40,172         409                747                66 Heat Recovery Diesel McGrath Light & Power McGrath Heat Recovery 05/10 ‐               2,390           23                 173               ‐               2,348           23                 168               ‐                   16,340         153                995                67 Heat Recovery Naphtha Golden Valley Electric Assoc.North Pole Heat Recovery 11/09 ‐               2,040           23                 93                 ‐               3,034           34                 78                 ‐                   18,246         298                829                68 Solar Thermal Propane Golden Valley Electric Assoc.McKinley Village Solar Thermal 06/10 ‐               120               1                   11                 ‐               101               1                   3                   ‐                   762              8                    46                  HEAT PROJECTS SUBTOTAL ‐               48,495         447               1,444           ‐               62,333         574               1,780           ‐                   247,530      2,390            7,629            GRAND TOTAL 364,098       56,020         28,179         73,559         385,562       70,492         29,942         60,081         1,190,072       285,946      93,245          218,083        Cumulative Total (2009 ‐ 2016)2015 Energy Production Fuel Displaced Energy Production Fuel Displaced 2016 Energy Production Fuel Displaced ELECTRICAL & HEAT PROJECTS HEAT PROJECTS ELECTRICAL PROJECTS 10 | RENEWABLE ENERGY FUND STATUS REPORT Renewable Energy Fund Round IX Final Recommended Applications and Funding CountEnergy Region ID Project Name Applicant Energy Source B/C Ratio Impacted Pop. Household Energy Cost Tech/ Econ Score State- wide Rank Project Cost Through Construction Applicant Grant Requested Applicant Match Offered Recommended Phase(s) AEA Recomnd Recommended Funding Funding in Gov. Budget 1 Copper River/Chugach 1226 Fivemile Creek Hydroelectric Project Chitina Electric Inc. (CEI) Hydro 1.71 116 $12,269 75.67 1 $6,589,090 $3,400,000 $2,600,000 Constr Full $3,400,000 $3,400,000 2 Bering Straits 1234 Wales Water System Heat Recovery City of Wales Heat Recovery 1.44 146 $17,269 72.50 3 $653,277 $650,047 $6,566 Design, Constr Full $650,047 $650,047 3 Aleutians 1245 Adak Hydro Power Generator TDX Adak Generating, TDX Hydro 1.75 247 $14,961 59.50 4 $1,750,000 $294,102 $126,044 Feas Partial $19,600 $19,600 4 Bering Straits 1238 Koyuk Water System Heat Recovery City of Koyuk Heat Recovery 1.06 321 $18,742 61.50 8 $695,269 $688,386 $6,884 Design Partial $90,922 $90,922 5 Bering Straits 1223 Shishmaref Wind Feasibility & Conceptual Design Alaska Village Electric Coop Wind 0.93* 607 $15,812 52.50 18 $2,529,400 $152,000 $8,000 Feas Full SP $152,000 $152,000 6 Railbelt 1242 Heat Pump System for City of Seward City of Seward Heat Pump 1.97 2,768 $9,005 83.17 5 $955,458 $725,000 $125,000 Design, Constr Full $725,000 $725,000 7 Southeast 1244 IPEC Gunnuk Creek Hydro Rehab in Kake Inside Passage Electric Coop Hydro 2.23 1,913 $10,561 73.00 6 $5,715,000 $3,920,000 $1,545,000 Constr Full SP $3,920,000 $3,920,000 8 Lower Yukon-Kuskokwim 1224 Mountain Village-St. Mary's Wind Intertie Alaska Village Electric Coop Trans, Wind 1.00 1,524 $12,362 66.00 7 $6,196,000 $3,196,000 $3,000,000 Design, Constr Full SP $3,196,000 $2,042,431 8 Sub Totals, Recommended Projects in Governor's Budget $25,083,494 $13,025,535 $7,417,494 $12,153,569 $11,000,000 Recommended Projects Project Cost Recommendation Notes: B/C = AEA Benefit/Cost Ratio over the life of the project. * The benefit/cost (B/C) ratio is an estimate of a project’s life-cycle present value (benefits) divided by the present value of lifetime capital and O&M costs. A ratio of 1.0 is generally considered the break-even point where the benefits equal the costs, however, this economic metric is only an estimate. Benefits counted in the REF economic evaluation mostly take the form of displaced diesel fuel and accordingly this value will fluctuate as it follows the global price of oil. The B/C ratios become more reliable as projects move to later phases of development because more comprehensive cost and benefit information is available and there is less time for circumstances to change before operation. By design in statute and regulations, the B/C ratio is only one portion of the overall project score. SP = Special Provision The rows that appear in bold font are those projects in underserved regions. Applications 1234, 1238 and 1223 were moved up the list during stage four regional distribution. Impacted population includes the population of a community(s) or utility service area(s) which a project is located in or may impact. The Household Energy Cost is a measure of the annual heating and electricity costs for a typical household in a given region/ community. The technical and economic score is the total stage 2 score and is on a scale of 0 to 100. A minimum score of 40 is required to pass stage 2. Match offered is applicant’s offered cash and in-kind match, including supporting efficiency work and wood harvest value where applicable. If the awarded funding amount is reduced from the requested amount, the required match is also reduced. 1245 Adak hydro: Application requested funding for feasibility, design and construction. AEA recommends partial funding to complete only the feasibility study portion of the project. 1238: Koyuk water heat recovery: Application requested funding for final design and construction. AEA recommends limiting funding to final design to evaluate the potential to find savings, to improve project economics and better assess value. 1223 Shishmaref wind: The applicant requested funding for the feasibility stage. The B/C ratio could potentially increase based on site-specific meteorological data once it is available for analysis. The statewide wind model often under-predicts the wind resource on the west coast of Alaska. Wind measurement at the specific targeted site through the requested feasibility study will increase the confidence of the project economics. REF RECOMMENDED PROJECTS IN THE FY19 GOVERNOR’S BUDGET JANUARY 2018 | 7 2 3 4 5 14                    15 16 17 Technology  Type Fuel  Displaced Grantee Project Name Start  date Electrical  (MWh) Thermal  (MMBtu) Diesel (Gal x  1000) Value  ($ x 1000) Electrical  (MWh) Thermal  (MMBtu) Diesel (Gal x  1000)  Value  ($ x 1000)   Electrical  (MWh)  Thermal  (MMBtu) Diesel (Gal x  1000) Value  ($ x 1000) 1 Hydro Natural Gas Chugach Electric Association, Inc.Stetson Creek Diversion/Cooper Lake 08/15 2,994           ‐               401               186               6,020           ‐               806               253               9,014               ‐               1,207            439                2 Hydro Diesel Inside Passage Electric Co‐op Gartina Falls ‐ Hoonah 07/15 568               ‐               38                 124               1,188           ‐               80                 171               1,756               ‐               119                294                3 Hydro Diesel Chignik Lagoon Power Utility Packers Creek 03/15 562               ‐               52                 235               645               ‐               60                 218               1,207               ‐               112                453                4 Hydro Diesel City of Akutan Akutan Hydro 12/14 11                 ‐               1                   5                   110               ‐               13                 43                 121                  ‐               14                  48                  5 Hydro Diesel City and Borough of Sitka Blue Lake Expansion 11/14 59,272         ‐               4,559           14,594         69,041         ‐               5,311           12,852         137,068          ‐               10,544          29,601          6 Hydro Diesel City of Ketchikan Whitman Lake 10/14 8,762           ‐               674               2,851           7,650           ‐               588               1,521           18,899             ‐               1,454            5,181            7 Hydro Diesel Kodiak Electric Assoc.Terror Lake 01/14 118,044       ‐               8,432           34,233         124,484       ‐               8,892           25,430         251,833          ‐               17,944          62,424          8 Hydro Diesel Cordova Electric Co‐op Humpback Creek 07/11 3,074           ‐               236               586               3,731           ‐               287               546               18,200             ‐               1,395            4,319            9 Hydro Diesel Gustavus Electric Falls Creek 07/09 2,149           ‐               165               515               2,237           ‐               172               572               14,289             ‐               1,064            3,790            10 Hydro Diesel City of Atka Chuniixsax Creek 12/12 381               ‐               29                 153               321               ‐               25                 114               1,378               ‐               106                550                11 Hydro Diesel INNEC Tazimina Hydroelectric Project 01/16 ‐               ‐               ‐               ‐               3,540           ‐               264               1,236           3,540               ‐               264                1,236            12 Hydro Diesel Copper Valley Electric Association Allison Lake Hydro 09/16 ‐               ‐               ‐               ‐               881               ‐               71                 187               881                  ‐               71                  187                13 Landfill Gas Nat Gas Municipality of Anchorage Anchorage Landfill Gas 08/12 50,032         ‐               4,783           1,079           42,517         ‐               4,065           764               195,430          ‐               18,651          8,309            14 Solar PV Diesel Alaska Power Company Eagle Solar Array Project 01/16 ‐               ‐               ‐               ‐               20                 ‐               2                   4                   20                    ‐               2                    4                    15 Solar PV Diesel AK Village Electric Co‐op Kaltag Solar 10/12 8                   ‐               1                   2                   9                   ‐               1                   2                   34                    ‐               3                    9                    16 Transmission Diesel AK Electric Light & Power Snettisham ‐ Juneau 01/14 936               ‐               72                 112               936               ‐               72                 157               2,807               ‐               216                381                17 Transmission Diesel Alaska Power & Telephon North Prince of Wales Intertie 09/11 1,352           ‐               104               289               1,222           ‐               94                 194               5,745               ‐               406                1,243            18 Transmission Diesel Nome Joint Utility System Banner Wind Transmission 10/10 1,650           ‐               102               307               982               ‐               60                 151               8,130               ‐               488                1,490            19 Wind Diesel Nome Joint Utility System Banner Peak Wind Expansion 08/13 1,642           ‐               100               304               1,573           ‐               96                 240               5,110               ‐               312                932                20 Wind Diesel Northwest Arctic Borough Buckland, Deering, Noorvik Wind Farm 01/16 ‐               ‐               ‐               ‐               166               ‐               13                 45                 166                  ‐               13                  45                  21 Wind Naphtha Golden Valley Electric Assoc.Eva Creek 10/12 72,639         ‐               5,115           8,324           77,320         ‐               5,445           7,319           306,439          ‐               21,580          43,992          22 Wind Diesel Kotzebue Electric Association Kotz Wind‐Battery‐Diesel 05/12 2,511           ‐               171               542               3,179           ‐               216               587               13,087             ‐               890                2,936            23 Wind Diesel AK Village Electric Co‐op Shaktoolik Wind 04/12 283               ‐               22                 84                 329               ‐               25                 79                 1,263               ‐               97                  363                24 Wind Diesel AK Village Electric Co‐op Emmonak/Alakanuk Wind 09/11 327               ‐               23                 84                 698               ‐               49                 162               2,584               ‐               183                681                25 Wind Diesel AK Village Electric Co‐op Quinhagak Wind Farm 11/10 403               ‐               31                 115               690               ‐               53                 170               3,028               ‐               228                858                26 Wind Diesel AK Village Electric Co‐op Mekoryuk Wind Farm 11/10 180               ‐               13                 48                 118               ‐               8                   29                 1,058               ‐               72                  268                27 Wind Naphtha Alaska Environmental Power Delta Area Wind Turbines 09/10 2,013           ‐               130               351               1,682           ‐               109               271               10,727             ‐               674                1,726            28 Wind Diesel Kodiak Electric Assoc.Pillar Mountain Wind 09/10 29,107         ‐               2,050           5,417           29,314         ‐               2,064           3,728           153,999          ‐               10,839          31,810          29 Wind Diesel AK Village Electric Co‐op Toksook Wind Farm 08/09 168               ‐               12                 46                 668               ‐               49                 175               1,827               ‐               131                479                ELECTRICAL PROJECTS SUBTOTAL 359,069       ‐               27,317         70,583         381,268       ‐               28,989         57,221         1,169,639       ‐               89,077          204,046        30 Hydro Diesel City of Pelican Pelican Hydro Upgrade 03/13 1,298           ‐               93                 415               1,140           ‐               81                 168               4,151               431              301                1,152            31 Biomass Diesel AK Gateway School District Tok Wood Heating 10/10 306               6,136           59                 152               170               7,171           69                 200               745                  32,593         308                892                32 Heat Recovery Diesel City of Unalaska Unalaska Heat Recovery 09/14 470               ‐               36                 80                 569               ‐               44                 76                 1,119               ‐               86                  177                33 Wind/Heat Diesel Tuntutuliak Comm Svs Assoc.Tunt Wind‐Diesel Smart Grid 01/13 215               128               17                 64                 162               347               13                 37                 727                  1,044           56                  216                34 Wind/Heat Diesel Kwigillingok Power Company Kwig Wind‐Diesel Smart Grid 02/12 464               238               38                 126               379               200               31                 92                 1,102               743              90                  309                35 Wind/Heat Diesel Aleutian Wind Energy Sand Point Wind 08/11 974               360               72                 326               736               ‐               54                 246               4,574               773              336                1,537            36 Wind/Heat Diesel Puvurnaq Power Company Kong Wind‐Diesel Smart Grid 12/10 330               435               29                 96                 263               441               24                 72                 1,502               2,053           134                495                37 Wind/Heat Diesel Unalakleet Valley Electric Co Unalakleet Wind Farm 12/09 972               228               72                 273               877               ‐               63                 189               6,513               779              468                1,631            ELECTRICAL & HEAT PROJECTS SUBTOTAL 5,029           7,525           416                1,532           4,295           8,159           379                1,081           20,433             38,416         1,778            6,409            38 Wind Diesel AK Village Electric Co‐op Chevak Surplus Wind to Heat Water 07/15 ‐               121               1                   6                   ‐               73                 1                   4                   ‐                   195              2                    10                  39 Wind Diesel AK Village Electric Co‐op Gambell Surplus Wind to Heat Water 07/15 ‐               174               2                   6                   ‐               85                 1                   4                   ‐                   294              3                    11                  40 Biomass Diesel Ketchikan Gateway Borough Ketchikan Gateway Borough Biomass Heat 08/16 ‐               ‐               ‐               ‐               ‐               690               6                   4                   ‐                   690              6                    4                    42 Biomass Diesel City of Kobuk Upper Kobuk River Biomass 01/16 ‐               ‐               ‐               ‐               ‐               380               4                   24                 ‐                   380              4                    24                  43 Biomass Diesel Lake and Peninsula Borough Lake and Pen Wood Boilers 01/15 ‐               45                 0                   2                   ‐               54                 1                   3                   ‐                   100              1                    5                    44 Biomass Diesel IRHA Wood Heating Interior Commmunities 01/15 ‐               272               3                   10                 ‐               1,560           14                 73                 ‐                   1,832           17                  83                  45 Biomass Diesel Mentasta Traditional Council Mentasta Community Facility Heat 10/14 ‐               542               5                   22                 ‐               1,084           10                 18                 ‐                   1,626           15                  39                  46 Biomass Diesel City of Tanana Tanana City‐Tribe Biomass 01/14 ‐               1,360           12                 61                 ‐               920               8                   38                 ‐                   4,252           38                  146                47 Biomass Diesel Southeast Island School District Thorne Bay School Biomass 01/13 ‐               2,121           19                 78                 ‐               1,128           10                 14                 ‐                   4,882           44                  128                48 Biomass Diesel Native Village of Eyak Cordova Wood Processing 12/11 ‐               840               7                   28                 ‐               1,066           8                   22                 ‐                   5,986           48                  170                49 Biomass Diesel Chilkoot Indian Association Haines Central Wood Heating 10/11 ‐               141               2                   3                   ‐               ‐               ‐               ‐               ‐                   852              8                    19                  50 Biomass Diesel Delta/Greely School District Delta Wood Chip Heating 09/11 ‐               3,339           32                 105               ‐               1,828           18                 29                 ‐                   16,865         162                501                51 Biomass Diesel Gulkana Village Council Gulkana Central Wood Heating 10/10 ‐               198               2                   6                   ‐               609               6                   2                   ‐                   4,607           43                  125                52 Heat Pumps Diesel Cook Inlet Housing Authority Seldovia House Ground Source Heat Pump 01/16 ‐               ‐               ‐               ‐               ‐               297               3                   4                   ‐                   297              3                    4                    53 Heat Pumps Diesel City of Seward Sealife Center Seawater Heat Pump 11/11 ‐               4,179           40                 105               ‐               3,446           33                 28                 ‐                   17,955         173                401                54 Heat Pumps Diesel City and Borough of Juneau Airport Ground Source Heat Pump 05/11 ‐               6,400           46                 153               ‐               6,400           46                 145               ‐                   36,117         266                899                55 Heat Pumps Diesel City and Borough of Juneau Aquatic Cntr Ground Source Heat Pump 04/11 ‐               4,621           39                 68                 ‐               3,224           27                 35                 ‐                   18,189         154                355                41 Heat Recovery Diesel Venetie Village Council Venetie District Heating 02/16 ‐               ‐               ‐               ‐               ‐               435               5                   38                 ‐                   435              5                    38                  56 Heat Recovery Diesel Native Village of Quinhagak Heat Recovery Water Plant & Washeteria 12/15 ‐               ‐               ‐               ‐               ‐               988               9                   44                 ‐                   988              9                    44                  57 Heat Recovery Diesel City of Marshall Heat Recovery ‐ Marshall Water Plant & Store 09/15 ‐               ‐               ‐               ‐               ‐               1,703           15                 80                 ‐                   1,703           15                  80                  58 Heat Recovery Diesel Atmautluak Traditional Council Atmautluak Washeteria Heat Recovery 08/15 ‐               ‐               ‐               ‐               ‐               134               1                   8                   ‐                   134              1                    8                    59 Heat Recovery Diesel City of Saint Paul Electric Utility Saint Paul Fuel Economy Upgrade 02/15 ‐               5,680           51                 265               ‐               4,800           43                 157               ‐                   10,480         95                  422                60 Heat Recovery Diesel Sleetmute Traditional Council Heat Recovery to Water Plant 11/14 ‐               176               2                   9                   ‐               399               4                   19                 ‐                   575              5                    29                  61 Heat Recovery Diesel City of Savoonga Savoonga Heat Recovery ‐ Water Plant 10/14 ‐               ‐               ‐               ‐               ‐               1,214           9                   46                 ‐                   1,214           9                    46                  62 Heat Recovery Diesel City of Ambler Ambler Heat Recovery 10/13 ‐               494               5                   26                 ‐               456               5                   26                 ‐                   1,466           15                  111                63 Heat Recovery Diesel North Slope Borough Point Lay Heat Recovery 08/13 ‐               1,555           15                 21                 ‐               1,104           10                 18                 ‐                   4,812           45                  137                64 Heat Recovery Diesel Inside Passage Electric Co‐op Hoonah Heat Recovery Project 08/12 ‐               4,099           39                 167               ‐               20,279         195               565               ‐                   35,084         337                1,172            65 Heat Recovery Diesel City and Borough of Wrangell Wrangell Hydro Electric Boilers 02/11 ‐               7,588           78                 25                 ‐               2,494           26                 82                 ‐                   40,172         409                747                66 Heat Recovery Diesel McGrath Light & Power McGrath Heat Recovery 05/10 ‐               2,390           23                 173               ‐               2,348           23                 168               ‐                   16,340         153                995                67 Heat Recovery Naphtha Golden Valley Electric Assoc.North Pole Heat Recovery 11/09 ‐               2,040           23                 93                 ‐               3,034           34                 78                 ‐                   18,246         298                829                68 Solar Thermal Propane Golden Valley Electric Assoc.McKinley Village Solar Thermal 06/10 ‐               120               1                   11                 ‐               101               1                   3                   ‐                   762              8                    46                  HEAT PROJECTS SUBTOTAL ‐               48,495         447               1,444           ‐               62,333         574               1,780           ‐                   247,530      2,390            7,629            GRAND TOTAL 364,098       56,020         28,179         73,559         385,562       70,492         29,942         60,081         1,190,072       285,946      93,245          218,083        Cumulative Total (2009 ‐ 2016)2015 Energy Production Fuel Displaced Energy Production Fuel Displaced 2016 Energy Production Fuel Displaced ELECTRICAL & HEAT PROJECTS HEAT PROJECTS ELECTRICAL PROJECTS In calendar year 2016 REF projects saved nearly 30 million diesel equivalent gallons of fuel, saving Alaska communities over $60 million. In the eight years 2009 to 2016 cumulative savings are in excess of $218 million. The power and heat generation presented in this table is the annual amount pro- duced by projects that have received REF investment. In certain cases the interac- tions between REF funded and previously existing or subsequently build projects are not separable. These cases are noted and total renewable generation is provided. Project specific notes: Row 5 - Blue Lake Expansion: Production numbers show are for the whole system. Row 7: Terror Lake Hydro: REF funded the installation of turbine there at Terror Lake. The production numbers show are for the whole hydro system. Years prior to 2015 reported modeled estimates of tur- bine three contributions. The cumulative total is the sum of all years as reported. Row 16 - Snettisham Transmission Line Avalanche Mitigation: actual production values are not available, the figures report- ed are modeled. Rows 27 and 29 - Delta and Toksook wind performance values are for REF funded turbines only, not the whole wind farm. Row 54 - Juneau Ground-source Heat- pump: the project does not have metering. Values reported are estimates based on grantee information. Values for projects that are no longer required to provide performance reporting are estimated based on prior performance and engineer’s estimates when community provided information is unavailable. 8 | RENEWABLE ENERGY FUND STATUS REPORT JANUARY 2018 | 9 The recommendations for funding in FY19 have been pulled from the list of projects recommended in 2016 for Round IX of the REF program. The solicitation for applications in Round IX resulted in 52 applications for projects to serve 95 com- munities, of which 38 projects were recommended for funding. Eight of these projects were removed from the list prior to resubmitting the list for consideration in the FY19 budget process due to changed circumstances since 2015 that rendered funding at this time unnecessary. The remaining 30 projects are still pursuing project funds with a cumulative request of $36.9 million from the REF. Of this, AEA recommended $32.4 million. The Governor’s FY19 budget proposes funding the top eight projects off of this slightly revised project list; the last (eighth) project on the list would receive partial funding to fit into the $11 million proposed budget. The projects in the Governor’s budget are described in the pages that follow. REVIEW PROCESS The projects being recommended for FY19 funding went through three stages of review and scoring and a fourth stage where regional distribution was applied. The first three stages evaluate and score: eligibility, technical and economic feasi- bility, cost of energy, experience and qualifications, and ranking based on criteria established in statute and regulation. The technical and economic evaluation is a thorough vetting process conducted by a team of AEA technical reviewers, independent economists, and staff at the Department of Natural Resources. Following the third stage of evaluation in this process, AEA presents to the REFAC a ranked list of recommended projects, a list of not recommended projects, and a regional distribution recommendation to ensure that there is cumulative regional equity across all funding rounds. ADVISORY COMMITTEE/REGIONAL DISTRIBUTION The statute that created the Renewable Energy Fund required that AEA develop a process for evaluation and ranking that includes “….significant weight being given to a statewide balance of grant funds…” AEA and the REFAC take the follow- ing approach to ensuring this statutorily required regional distribution of REF dollars: Calculate regional funding target by using a regional population weighted “burden of energy cost” metric to establish regional funding bands. The burden of energy cost for a household is calculated based on regionally appropriate average annual residential heating equivalent consumption, 6,000 annual electric consumption and regional household income. A regional population weighted burden of energy cost is calculated for the 11 energy regions in the state: Burden of energy cost = (HH cost of electric + heat)/HH income The burden number is then used to calculate a target funding level for each region, such that regions with high energy cost burden are eligible to receive more funding cumulatively across all years of REF funding. Underserved: In order for a region to be classified as underserved it must have received less than 50 percent of the cal- culated target. Projects in underserved regions can then be moved up on the list (if the project they are replacing is in an adequately or overserved region). The two underserved regions based on round I-VIII funding were Yukon-Koyukuk/Up- per Tanana and Bering Straits region. During the regional balancing stage of the Round IX evaluation three projects were moved up the list for this reason. Overserved: For a region to be considered overserved, it must have received more than two times their calculated target. To achieve better balance of funding across the state, regions that are determined to be overserved will be capped such that their share of the overall funding cannot grow. AEA RECOMMENDATIONS The REFAC met in June 2016 to offer support for resubmitting the Round IX list, initially solicited in fall 2015, as the list of recommendations to the legislature for Round X funding in the 2017 legislative budget process. This decision was based on a desire to avoid any unnecessary burden on communities that would come from soliciting complex and costly applica- tions with little certainty of funding availability. In July 2017, the Alaska Department of Revenue calculated earnings on the PCE endowment fund as the Department does every July. Those findings suggested that, because of the impact of 2015’s SB 196 relating to a reallocation of excess Power Cost Equalization (PCE) earnings for non-PCE programs, funds were available that could be used for REF projects. AEA surveyed applicants from the Round IX solicitation, revised the list accordingly based on applicant feedback, and provided the updated list of projects recommended for REF funding to the Governor for consideration. Eight of those are included in the Governor’s proposed FY19 budget. Railbelt North Slope Yukon-Koyukuk/Upper Tanana SoutheastBristol Bay Northwest Arctic Lower Yukon-Kuskokwim Bering Straits Copper River/ Chugach Aleutians Kodiak The Aleut Corp Calista Corp Doyon Ltd Arctic Slope Regional Corp Sealaska Corp Koniag Inc Ahtna Inc Bering Straits Native Corp Bristol Bay Native Corp Cook Inlet Region Inc N.A.N.A. Regional Corp Chugach Alaska Corp Energy Regions and ANCSA Boundaries ANCSA Boundaries Aleutians Bering Straits Bristol Bay Copper River/Chugach Kodiak Lower Yukon-Kuskokwim North Slope Northwest Arctic Railbelt Southeast Yukon-Koyukuk/Upper Tanana0200Miles Alaska Regional Energy Planning REF FY19 RECOMMENDED APPLICATIONS AEA ENERGY DEVELOPMENT REGIONS 1. Aleutians 2. Bering Straits 3. Bristol Bay 4. Copper River/Chugach 5. Kodiak 6. Lower Yukon-Kuskokwim 7. North Slope 8. Northwest Arctic 9. Railbelt 10. Southeast 11. Yukon-Koyukuk/Upper Tanana.