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HomeMy WebLinkAboutAPPLICATION - REF ApplicationRenewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 3 of 34 10/04/2022 SECTION 1 – APPLICANT INFORMATION Please specify the legal grantee that will own, operate, and maintain the project upon completion. Name (Name of utility, IPP, local government, or other government entity) City of Fairbanks Tax ID # 92-6000140 Date of last financial statement audit: June 27, 2022 Mailing Address: Physical Address: 800 Cushman St 800 Cushman St Fairbanks, AK 99701 Fairbanks, AK 99701 Telephone: Fax: Email: 907-459-6707 907-459-6722 sfuerst@fairbanks.us 1.1 Applicant Point of Contact / Grants Coordinator Name: Sarah Fuerst Title: Grants and Contracts Administration Manager Mailing Address: 800 Cushman St Fairbanks, AK 99701 Telephone: Fax: Email: 907-459-6707 907-459-6722 sfuerst@fairbanks.us 1.1.1 Applicant Signatory Authority Contact Information Name: David Pruhs Title: Mayor Mailing Address: 800 Cushman St Fairbanks, AK 99701 Telephone: Fax: Email: 907-459-6793 907-459-6722 dpruhs3@fairbanks.us 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: Margarita Bell 907-459-6788 907-459-6722 mbell@fairbanks.us Mike Sanders 907-459-6760 907-459-6722 msanders@fairbanks.us Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 4 of 34 10/04/2022 1.2 Applicant Minimum Requirements Please check as appropriate. If applicants do not meet the minimum requirements, the application will be rejected. 1.2.1 Applicant Type ☐ An electric utility holding a certificate of public convenience and necessity under AS 42.05 CPCN #______, or ☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1) CPCN #______, or ☒ A local government, or ☐ A governmental entity (which includes tribal councils and housing authorities) Additional minimum requirements ☒ 1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant’s board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate yes by checking the box) ☒ 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement (Section 3 of the RFA). (Indicate yes by checking the box) ☒ 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as identified in the Standard Grant Agreement template at https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy- Fund/2022-REF-Application (Any exceptions should be clearly noted and submitted with the application.) (Indicate yes by checking the box) ☒ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. (Indicate yes by checking the box) Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 5 of 34 10/04/2022 SECTION 2 – PROJECT SUMMARY 2.1 Project Title Provide a 4 to 7 word title for your project. Type in the space below. Public Works Solar Panel Array 2.2 Project Location 2.2.1 Location of Project – Latitude and longitude (preferred), street address, or community name. Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s location on the map and then right clicking with the mouse and selecting “What is here? The coordinates will be displayed in the Google search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance obtaining this information, please contact AEA’s Grants Coordinator by email at grants@akenergyauthority.org or by phone at (907) 771- 3081. Latitude 64.82837 Longitude 147.77058 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. City of Fairbanks 2.3 Project Type Please check as appropriate. 2.3.1 Renewable Resource Type ☐ Wind ☐ Biomass or Biofuels (excluding heat-only) ☐ Hydro, Including Run of River ☐ Hydrokinetic ☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy ☒ Solar Photovoltaic ☐ Storage of Renewable ☐ Other (Describe) ☐ Small Natural Gas 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction ☐ Reconnaissance ☒ Final Design and Permitting ☐ Feasibility and Conceptual Design ☒ Construction Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 6 of 34 10/04/2022 2.4 Project Description Provide a brief, one-paragraph description of the proposed project. This project will install a commercial solar panel array on an elevated pad on the Public Works compound to decrease energy costs through the direct use of renewable energy resources. This will be accomplished through a series of activities included in Phase III and Phase IV. The Public Works Facility is in the designated EPA PM 2.5 Air Quality Non-Attainment area. Generating and using electricity from solar power will lower the consumption of power produced in local power plants using coal and oil. 2.5 Scope of Work Provide a short narrative for the scope of work detailing the tasks to be performed under this funding request. This should include work paid for by grant funds and matching funds or performed as in-kind match. The City of Fairbanks (COF) is requesting $1,600,000.00 in funding to complete activities in Phase III – Final Design and Permitting and Phase IV – Construction to achieve the objective of installing the solar panel array at the city owned Public Works compound to achieve the long-term goal of reducing energy costs and producing a public benefit. The COF has completed Phase I efforts by performing reconnaissance activities to include: project scoping, resource identification and analysis, preliminary design and cost analysis, and simple economic analysis to include cost savings generated. Phase II completed activities advanced the project by performing a feasibility analysis through quote information and council discussions and conceptual design was recommended determining the location and type of unit to be installed; further Phase II activities to complete the Phase are identified below. The city identified the solar panel array as a capital project priority in 2021 and received a quote for a 67.425 kW Grid-Tie System that showed energy cost savings would be generated from the project. The best location for the system to be installed was determined to be located at the Public Works compound because the property contained undeveloped acreage to install a solar array at ground level. Due to a lack of identified funding for the project, the activity was put on hold until identifying the Renewable Energy Fund Program as a possible funding source. The City of Fairbanks Finance Committee discussed the project on November 15th, 2022 to gage support for applying for the program. At the November 28th City Council Meeting, the Resolution to Apply for the program was passed. Phase II will be conducted to provide a feasibility analysis and conceptual design for a larger kW Grid-Tie system to assess technical, economic, financial, and operational viability of a project to guide final design and construction. Activities will include assessment of project site, finalize system design, cost estimates for final design and construction, identifying permitting requirements, and habitat assessment. Phase III will be conducted prior to Phase IV to finalize plans and authorizations required for construction. During this phase all necessary permits will be obtained, any identified environmental issues resolved, and system operational plans finalized. Phase IV activities will consist of preparing bid documents, vendor selection and award, construction, and post-construction certification report. Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 7 of 34 10/04/2022 2.6 Previous REF Applications for the Project See Section 1.15 of the RFA for the maximum per project cumulative grant award amount Round Submitted Title of application Application #, if known Did you receive a grant? Y/N Amount of REF grant awarded ($) N/A Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 8 of 34 10/04/2022 SECTION 3 – Project Management, Development, and Operation 3.1 Schedule and Milestones Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding request. Be sure to identify key tasks and decision points, including go/no go decisions, in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases (I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final Design and Permitting, and IV. Construction) of your proposed project. See the RFA, Sections 2.3-2.6 for the recommended milestones for each phase. Add additional rows as needed. See attachment 1. Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 9 of 34 10/04/2022 3.2 Budget 3.2.1 Funding Sources Indicate the funding sources for the phase(s) of the project applied for in this funding request. Grant funds requested in this application $1,600,000.00 Cash match to be provideda $0 In-kind match to be provideda $0 Energy efficiency match providedb $0 Total costs for project phase(s) covered in application (sum of above) $1,600,000.00 Describe your financial commitment to the project and the source(s) of match. Indicate whether these matching funds are secured or pending future approvals. Describe the impact, if any, that the timing of additional funds would have on the ability to proceed with the grant. a Attach documentation for proof (see Section 1.18 of the Request for Applications) b See Section 8.2 of this application and Section 1.18 of the RFA for requirements for Energy Efficiency Match. 3.2.2 Cost Overruns Describe the plan to cover potential cost increases or shortfalls in funding. Any shortfalls in funding will be covered by a request to pay out of the Mayor’s Contingency Fund. 3.2.3 Total Project Costs Indicate the anticipated total cost by phase of the project (including all funding sources). Use actual costs for completed phases. Indicate if the costs were actual or estimated. Reconnaissance [Actual/Estimated] $ Feasibility and Conceptual Design [Actual/Estimated] $ Final Design and Permitting [Actual/Estimated] $ Construction [Actual/Estimated] $1,600,000.00 Total Project Costs (sum of above) Estimated $1,600,000.00 Metering/Tracking Equipment [not included in project cost] Estimated $ 3.2.4 Funding Subsequent Phases If subsequent phases are required beyond the phases being applied for in this application, describe the anticipated sources of funding and the likelihood of receipt of those funds.  State and/or federal grants  Loans, bonds, or other financing options  Additional incentives (i.e. tax credits)  Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) N/A. Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 10 of 34 10/04/2022 3.2.3 Budget Forms Applications MUST include a separate worksheet for each project phase that was identified in Section 2.3.2 of this application — I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail your proposed project’s total budget. Be sure to use one table for each phase of your project, and delete any unnecessary tables. The milestones and tasks should match those listed in 3.1 above. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA’s Grants Coordinator by email at grants@akenergyauthority.org or by phone at (907) 771-3081. Phase 1 — Reconnaissance Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Sections 2.3 thru 2.6 of the RFA ) $ $ $ N/A. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 11 of 34 10/04/2022 Phase 2 — Feasibility and Conceptual Design Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Sections 2.3 thru 2.6 of the RFA ) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 12 of 34 10/04/2022 Phase 3 — Final Design and Permitting Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Sections 2.3 thru 2.6 of the RFA ) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 13 of 34 10/04/2022 Phase 4 — Construction Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Sections 2.3 thru 2.6 of the RFA ) $ $ $ Construction 9/30/2023 $1,600,000 $ $1,600,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $1,600,000 $ $1,600,000 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 14 of 34 10/04/2022 3.2.4 Cost Justification Indicate the source(s) of the cost estimates used for the project budget, including costs for future phases not included in this application. The City received a quote from Renewable Energy Sources for a 67.425 kW Grid-Tie System that would cost $300,000.00. Given the space available at the Public Works Facility the City believes it can comfortably fit a $1,000,000.00 system on the grounds to produce the desired energy cost offset. Grounds work and installation for the system was estimated to be $600,000.00. 3.3 Project Communications 3.3.1 Project Progress Reporting Describe how you plan to monitor the progress of the project and keep AEA informed of the status. Who will be responsible for tracking the progress? What tools and methods will be used to track progress? The City of Fairbanks will provide monthly status reports starting in the month of the grant award to close out of the project, status reports will include progress updates, deliverables identified in Attachment 1, information on matching funds provided, reimbursement backup and information on difficulties encountered. Sarah Fuerst - Grants and Contracts Administration Manager will be responsible for tracking the progress. Progress will be tracked by milestone completion, and documentation for matching funds spent towards the project. The City utilizes an accounting system capable of tracking hours and funds spent on specific projects. 3.3.2 Financial Reporting Describe the controls that will be utilized to ensure that only costs that are reasonable, ordinary and necessary will be allocated to this project. Also discuss the controls in place that will ensure that no expenses for overhead, or any other unallowable costs will be requested for reimbursement from the REF Grant Program. The City will review all costs associated with Phase IV construction and installation of the system as invoices are received to ensure that work was performed in accordance to the specifics outlined in the contract. Only after costs are determined to be allowable for reimbursement will the City make payment and submit a reimbursement request to the REF Grant Program. The City will also maintain and review documentation for all employee hours used as matching funds for the program. Site monitoring and close contact with the selected contractor will help to ensure that work is being performed in accordance to the agreement in place. Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 15 of 34 10/04/2022 SECTION 4 – QUALIFICATIONS AND EXPERIENCE 4.1 Project Team Include resumes for known key personnel and contractors, including all functions below, as an attachment to your application. In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. 4.1.1 Project Manager Indicate who will be managing the project for the Grantee and include contact information. If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Jeff Jacobson (907-459-6817, jjacobson@fairbanks.us), Public Works Director is designated as the City’s project manager. 4.1.2 Project Accountant Indicate who will be performing the accounting of this project for the grantee. If the applicant does not have a project accountant indicate how you intend to solicit financial accounting support. Margarita Bell, CFO, will be the financial lead for the project. Sarah Fuerst, Grants and Contracts Administration Manager, will be responsible for reporting and ensuring the City of Fairbanks follows all grant guidelines. 4.1.3 Expertise and Resources Describe the project team including the applicant, partners, and contractors. For each member of the project team, indicate:  the milestones/tasks in 3.1 they will be responsible for;  the knowledge, skills, and experience that will be used to successfully deliver the tasks;  how time and other resource conflicts will be managed to successfully complete the task. If contractors have not been selected to complete the work, provide reviewers with sufficient detail to understand the applicant’s capacity to successfully select contractors and manage complex contracts. The project team will include the following members: Jeff Jacobson, Public Works Director – Responsible for project management on all tasks outlined in the project schedule. Experience as the Public Works Director will help guide and manage the project to a successful completion. Monitoring of project progress and cost data will ensure time and money are managed successfully through close out. Project tasks and supervision may be delegated as needed to other qualified Public Works staff. Margarita Bell, CFO – Responsible for oversite of financial information and reporting on project. Experience as CFO will guide the project to success through use of fiscal responsibility and analysis of funding used and available. Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 16 of 34 10/04/2022 Sarah Fuerst, Grants and Contracts Administration Manager – Responsible for progress reporting, schedule and grant agreement adherence, and monitoring of financial and progress completion. Sarah is responsible for reporting on all of the City’s active grants and monitors them to their completion. Any time or resource conflicts will be communicated to the grantor for quick problem solving. The contractor for the project has not been selected. The contract will be awarded to competitively procured contractor. The reviewers for the bids provided will be able to understand and judget the applicant’s capacity to successfully select contractors and manage complex contracts. 4.2 Local Workforce Describe how the project will use local labor or train a local labor workforce. The project will use a competitively procured contractor. Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 17 of 34 10/04/2022 SECTION 5 – TECHNICAL FEASIBILITY 5.1 Resource Availability 5.1.1 Assessment of Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available, including average resource availability on an annual basis. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application (See Section 11). Likelihood of the resource being available over the life of the project. See the “Resource Assessment” section of the appropriate Best Practice Checklist for additional guidance. The project proposed would install a solar panel array in an open field at the Public Works Facility. The resource utilized would be sunlight and would provide the most benefit during the summer months. 5.1.2 Alternatives to Proposed Energy Resource Describe the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. The pros of this proposed energy resource is it will greatly reduce costs during the summer months, cons are that it will not provide as much benefit during the winter months. 5.1.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. See the “Environmental and Permitting Risks” section of the appropriate Best Practice Checklist for additional guidance.  List of applicable permits  Anticipated permitting timeline  Identify and describe potential barriers including potential permit timing issues, public opposition that may result in difficulty obtaining permits, and other permitting barriers Permitting requirements will be determined after any award is granted before construction begins. The City of Fairbanks owns the land in which construction will take place and does not anticipate any public opposition or permitting barriers. 5.2 Project Site Describe the availability of the site and its suitability for the proposed energy system. Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. See the “Site control” section of the appropriate Best Practice Checklist for additional guidance. The site is owned by the City of Fairbanks and is ready for construction and alterations to its current state to make the land suitable for housing the solar panels. 5.3 Project Technical & Environmental Risk 5.3.1 Technical Risk Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 18 of 34 10/04/2022 Describe potential technical risks and how you would address them.  Which tasks are expected to be most challenging?  How will the project team reduce the risk of these tasks?  What internal controls will be put in place to limit and deal with technical risks? See the “Common Planning Risks” section of the appropriate Best Practice Checklist for additional guidance. Construction beginning and ending quickly will be a challenge. The project team will work to ensure that the selected contractor can meet the deadlines in place. 5.3.2 Environmental Risk Explain whether the following environmental and land use issues apply, and if so which project team members will be involved and how the issues will be addressed. See the “Environmental and Permitting Risks” section of the appropriate Best Practice Checklist for additional guidance.  Threatened or endangered species  Habitat issues  Wetlands and other protected areas  Archaeological and historical resources  Land development constraints  Telecommunications interference  Aviation considerations  Visual, aesthetics impacts  Identify and describe other potential barriers N/A. 5.4 Technical Feasibility of Proposed Energy System In this section you will describe and give details of the existing and proposed systems. The information for existing system will be used as the baseline the proposal is compared to and also used to make sure that proposed system can be integrated. Only complete sections applicable to your proposal. If your proposal only generates electricity, you can remove the sections for thermal (heat) generation. 5.4.1 Basic Operation of Existing Energy System Describe the basic operation of the existing energy system including: description of control system; spinning reserve needs and variability in generation (any high loads brought on quickly); and current voltage, frequency, and outage issues across system. See the “Understanding the Existing System” section of the appropriate Best Practice Checklist for additional guidance. The solar panels will generate electricity by capturing the flow of electrons from sunlight and turning the flow into a usable electric current. Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 19 of 34 10/04/2022 5.4.2.1 Existing Power Generation Units Include for each unit include: resource/fuel, make/model, design capacity (kW), minimum operational load (kW), RPM, electronic/mechanical fuel injection, make/model of genset controllers, hours on genset Unit 1: Unit 2: Unit 3: Unit 4: Unit 5: Unit 6: 5.4.2.2 Existing Distribution System Describe the basic elements of the distribution system. Include the capacity of the step-up transformer at the powerhouse, the distribution voltage(s) across the community, any transmission voltages, and other elements that will be affected by the proposed project. 5.4.2.3 Existing Thermal Generation Units (if applicable to your project) Generation unit Resource/ Fuel type Design capacity (MMBtu/hr) Make Model Average annual efficiency Year Installed Hours 5.4.2.5 Annual Electricity Production and Fuel Consumption (Existing System) 5.4.2 Existing Energy Generation Infrastructure and Production In the following tables, only fill in areas below applicable to your project. You can remove extra tables. If you have the data below in other formats, you can attach them to the application (see Section 11). Is there operational heat recovery? (Y/N) If yes estimated annual displaced heating fuel (gallons) 5.4.2.4 O&M and replacement costs for existing units Power Generation Thermal Generation i. Annual O&M cost for labor ii. Annual O&M cost for non-labor iii. Replacement schedule and cost for existing units Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 20 of 34 10/04/2022 Use most recent year. Replace the section (Type 1), (Type 2), and (Type 3) with generation sources Month Generati on (Type 1) (kWh) Generatio n (Type 2) (kWh) Generatio n (Type 3) (kWh) Fuel Consumptio n (Diesel- Gallons) Fuel Consumptio n [Other] Pea k Loa d Minimu m Load January February March April May June July August Septembe r October November December Total 5.4.2.6 Annual Heating Fuel Consumption (Existing System) Use most recent year. Include only if your project affects the recovered heat off the diesel genset or will include electric heat loads. Only include heat loads affected by the project. Month Diesel (Gallons) Electricity Propane (Gallons) Coal (Tons) Wood (Cords, green tons, dry tons) Other January February March April May June July August September October November December Total 5.4.3 Future Trends Describe the anticipated energy demand in the community, or whatever will be affected by the project, over the life of the project. Explain how the forecast was developed and provide year by year forecasts. As appropriate, include expected changes to energy demand, peak load, seasonal variations, etc. that will affect the project. Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 21 of 34 10/04/2022 5.4.4 Proposed System Design Provide the following information for the proposed renewable energy system:  A description of renewable energy technology specific to project location  The total proposed capacity and a description of how the capacity was determined  Integration plan, including upgrades needed to existing system(s) to integrate renewable energy system: Include a description of the controls, storage, secondary loads, distribution upgrades that will be included in the project  Civil infrastructure that will be completed as part of the project—buildings, roads, etc.  Include what backup and/or supplemental system will be in place See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional guidance. 5.4.4.1 Proposed Power Generation Units Unit # Resource/ Fuel type Design capacity (kW) Make Model Expected capacity factor Expected life (years) Expected Availability 5.4.4.2 Proposed Thermal Generation Units (if applicable) Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 22 of 34 10/04/2022 Generation unit Resource/ Fuel type Design capacity (MMBtu/hr) Make Model Expected Average annual efficiency Expected life 5.4.5 Basic Operation of Proposed Energy System  To the best extent possible, describe how the proposed energy system will operate: When will the system operate, how will the system integrate with the existing system, how will the control systems be used, etc.  When and how will the backup system(s) be expected to be used See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional guidance. 5.4.3.1 Expected Capacity Factor % 5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System) Month Generation (Proposed System) (kWh) Generation (Type 2) (kWh) Generation (Type 3) (kWh) Fuel Consumption (Diesel- Gallons) Fuel Consumption [Other] Secondary load (kWh) Storage (kWh) January February March April May June July August September October November December Total Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 23 of 34 10/04/2022 5.4.5.3 Annual Heating Fuel Consumption (Proposed System) Month Diesel (Gallons) Electricity Propane (Gallons) Coal (Tons) Wood (Cords, green tons, dry tons) Other January February March April May June July August September October November December Total 5.4.6 Proposed System Operating and Maintenance (O&M) Costs O&M costs can be estimated in two ways for the standard application. Most proposed renewable energy projects will fall under Option 1 because the new resource will not allow for diesel generation to be turned off. Some projects may allow for diesel generation to be turned off for periods of time; these projects should choose Option 2 for estimating O&M. Option 1: Diesel generation ON For projects that do not result in shutting down diesel generation there is assumed to be no impact on the base case O&M. Please indicate the estimated annual O&M cost associated with the proposed renewable project. $ Option 2: Diesel generation OFF For projects that will result in shutting down diesel generation please estimate: 1. Annual non-fuel savings of shutting off diesel generation 2. Estimated hours that diesel generation will be off per year. 3. Annual O&M costs associated with the proposed renewable project. 1. $ 2. Hours diesel OFF/year: 3. $ 5.4.7 Fuel Costs Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of operation) Diesel (Gallons) Electricity Propane (Gallons) Coal (Tons) Wood Other Unit cost ($) Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 24 of 34 10/04/2022 Annual Units Total Annual cost ($) 5.5 Performance and O&M Reporting For construction projects only 5.5.1 Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment that will be used to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. 5.5.2 O&M reporting Please provide a short narrative about the methods that will be used to gather and store reliable operations and maintenance data, including costs, to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility 6.1.1 Economic Benefit Annual Lifetime Anticipated Diesel Fuel Displaced for Power Generation (gallons) Anticipated Fuel Displaced for Heat (gallons) Total Fuel displaced (gallons) Anticipated Diesel Fuel Displaced for Power Generation ($) Anticipated Fuel Displaced for Heat ($) Anticipated Power Generation O&M Cost Savings Anticipated Thermal Generation O&M Cost Savings Total Other costs savings (taxes, insurance, etc.) Total Fuel, O&M, and Other Cost Savings Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 25 of 34 10/04/2022 6.1.2 Economic Benefit Explain the economic benefits of your project. Include direct cost savings and other economic benefits, and how the people of Alaska will benefit from the project. Note that additional revenue sources (such as tax credits or green tags) to pay for operations and/or financing, will not be included as economic benefits of the project. Where appropriate, describe the anticipated energy cost in the community, or whatever will be affected by the project, over the life of the project. Explain how the forecast was developed and provide year-by-year forecasts The economic model used by AEA is available at https://www.akenergyauthority.org/What-We- Do/Grants-Loans/Renewable-Energy-Fund/2022-REF-Application. This economic model may be used by applicants but is not required. The final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. If used, please submit the model with the application. 6.1.3 Economic Risks Discuss potential issues that could make the project uneconomic to operate and how the project team will address the issues. Factors may include:  Low prices for diesel and/or heating oil  Other projects developed in community  Reductions in expected energy demand: Is there a risk of an insufficient market for energy produced over the life of the project.  Deferred and/or inadequate facility maintenance  Other factors Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 26 of 34 10/04/2022 6.1.4 Public Benefit for Projects with Direct Private Sector Sales For projects that include direct sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See Section 1.6 in the Request for Applications for more information. N/A. Renewable energy resource availability (kWh per month) Estimated direct sales to private sector businesses (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) Estimated sales for use by the Alaskan public (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) 6.2 Other Public Benefit Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the purpose of evaluating this criterion, public benefits are those benefits that would be considered unique to a given project and not generic to any renewable resource. For example, decreased greenhouse gas emission, stable pricing of fuel source, won’t be considered under this category. Some examples of other public benefits include:  The project will result in developing infrastructure (roads, trails, pipes, power lines, etc.) that can be used for other purposes  The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.)  The project will solve other problems for the community (waste disposal, food security, etc.)  The project will generate useful information that could be used by the public in other parts of the state  The project will promote or sustain long-term commercial economic development for the community Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 27 of 34 10/04/2022 SECTION 7 – SUSTAINABILITY Describe your plan for operating the completed project so that it will be sustainable throughout its economic life. At a minimum for construction projects, a business and operations plan should be attached and the applicant should describe how it will be implemented. See Section 11. 7.1.1 Operation and Maintenance Demonstrate the capacity to provide for the long-term operation and maintenance of the proposed project for its expected life  Provide examples of success with similar or related long-term operations  Describe the key personnel that will be available for operating and maintaining the infrastructure.  Describe the training plan for existing and future employees to become proficient at operating and maintaining the proposed system.  Describe the systems that will be used to track necessary supplies  Describe the system will be used to ensure that scheduled maintenance is performed 7.1.2 Financial Sustainability  Describe the process used (or propose to use) to account for operational and capital costs.  Describe how rates are determined (or will be determined). What process is required to set rates?  Describe how you ensure that revenue is collected.  If you will not be selling energy, explain how you will ensure that the completed project will be financially sustainable for its useful life. 7.1.2.1 Revenue Sources Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area over the life of the project. If there is expected to be multiple rates for electricity, such as a separate rate for intermittent heat, explain what the rates will be and how they will be determined Collect sufficient revenue to cover operational and capital costs  What is the expected cost-based rate (as consistent with RFA requirements) Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 28 of 34 10/04/2022  If you expect to have multiple rate classes, such as excess electricity for heat, explain what those rates are expected to be and how those rates account for the costs of delivering the energy (see AEA’s white paper on excess electricity for heat).  Annual customer revenue sufficient to cover costs  Additional incentives (i.e. tax credits)  Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) 7.1.2.2 Power Purchase/Sale The power purchase/sale information should include the following:  Identification of potential power buyer(s)/customer(s)  Potential power purchase/sales price - at a minimum indicate a price range (consistent with the Section 3.16 of the RFA) Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price range. Indicate the proposed rate of return from the grant-funded project. Include letters of support or power purchase agreement from identified customers. SECTION 8 – PROJECT READINESS 8.1 Project Preparation Describe what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Specifically address your progress towards or readiness to begin, at a minimum, the following:  The phase(s) that must be completed prior to beginning the phase(s) proposed in this application  The phase(s) proposed in this application  Obtaining all necessary permits  Securing land access and use for the project  Procuring all necessary equipment and materials Refer to the RFA and/or the pre-requisite checklists for the required activities and deliverables for each project phase. Please describe below and attach any required documentation. Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 29 of 34 10/04/2022 8.2 Demand- or Supply-Side Efficiency Upgrades If you have invested in energy efficiency projects that will have a positive impact on the proposed project, and have chosen to not include them in the economic analysis, applicants should provide as much documentation as possible including: 1. Explain how it will improve the success of the RE project 2. Energy efficiency pre and post audit reports, or other appropriate analysis, 3. Invoices for work completed, 4. Photos of the work performed, and/or 5. Any other available verification such as scopes of work, technical drawings, and payroll for work completed internally. SECTION 9 – LOCAL SUPPORT AND OPPOSITION Describe local support and opposition, known or anticipated, for the project. Include letters, resolutions, or other documentation of local support from the community that would benefit from this project. Provide letters of support, memorandum of understandings, cooperative agreements between the applicant, the utility, local government and project partners. The documentation of support must be dated within one year of the RFA date of October 4, 2022. Please note that letters of support from legislators will not count toward this criterion. SECTION 10 – COMPLIANCE WITH OTHER AWARDS Identify other grants that may have been previously awarded to the Applicant by AEA for this or any other project. Describe the degree you have been able to meet the requirements of previous grants including project deadlines, reporting, and information requests. Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 30 of 34 10/04/2022 SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES In the space below, please provide a list of additional documents attached to support completion of prior phases. SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below, please provide a list of additional information submitted for consideration. Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 31 of 34 10/04/2022 SECTION 13 – AUTHORIZED SIGNERS FORM Community/Grantee Name: City of Fairbanks Regular Election is held: Annually on the first Tuesday of October Date: 12/5/2022 Authorized Grant Signer(s): Printed Name Title Term Signature David Pruhs Mayor Oct 2022 – Oct 2025 I authorize the above person(s) to sign Grant Documents: (Must be authorized by the highest ranking organization/community/municipal official) Printed Name Title Term Signature David Pruhs Mayor Oct 2022 – Oct 2025 Grantee Contact Information: Mailing Address: 800 Cushman St, Fairbanks, AK 99701 Phone Number: 907-459-6707 Fax Number: 907-459-6722 Email Address: sfuerst@fairbanks.us Federal Tax ID #: 92-6000140 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 32 of 34 10/04/2022 Please submit an updated form whenever there is a change to the above information. Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 33 of 34 10/04/2022 SECTION 14 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information and resumes of Applicant’s Project Manager, Project Accountant(s), key staff, partners, consultants, and suppliers per application form Section 3.1, 3.4 and 3.6. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project web site. B. Letters or resolutions demonstrating local support per application form Section 9. C. For projects involving heat: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that:  Commits the organization to provide the matching resources for project at the match amounts indicated in the application.  Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant.  Provides as point of contact to represent the applicant for purposes of this application.  Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. An electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name David Pruhs Signature Title Mayor Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 34 of 34 10/04/2022 Date 12/5/2022 Task # MilestoneTasksStart DateEnd Date DeliverablesPhase II1 Quote ReceivedEngage vendors to obtain quote for larger Grid‐Tie System that would cost $ 1 million 7/1/2023 7/15/2023 Reporting on quoted information2 Quote ReceivedReceive quote for ground work associated with installation7/1/2023 7/15/2023 Reporting on quoted information3 Site/Habitat Assessment Finalized Site assessment with City Environmental Manager7/1/2023 7/15/2023 Reporting on environmental assessmentPhase III1 Plans Finalized7/1/2023 7/15/2023 Reporting on final plan2 Permit ListingEngage City Building Official to obtain needed permits 7/1/2023 7/15/2023 Permit listingPhase IV1 RFP CreationPrepare bid documents 7/15/2023 7/31/2023 RFP 2 Bid publishedFinalize bid documents & publish for 21 day advertisement period8/1/2023 8/25/2023 Affidavit of publishing3 Contractor SelectionReview bids, select contractor, prepare contract & award documents8/25/2023 9/1/2023 Provide contract documents4 Construction All necessary construction work from land preparation to until install and connection 9/1/2023 9/30/2023 Provide construction updates5 Close‐outReporting on construction and close out 10/1/2023 12/31/2023 Progress Reporting, invoices for reimbursementUsing quoted information and environment assessment provided in Phase III, finalize design/construction plansAttachment 1