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HomeMy WebLinkAboutAPPLICATION - 1. REF Round 15 Standard Application Form CIRI BelugaRenewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 1 of 32 10/04/2022 Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round 15 of the Renewable Energy Fund (REF). A separate application form is available for projects with a primary purpose of producing heat (see Request for Applications (RFA) Section 1.5). This is the standard form for all other projects, including projects that will produce heat and electricity. An electronic version of the RFA and both application forms is available online at: https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy-Fund/2022- REF-Application. What follows are some basic information and instructions for this application:  If you are applying for grants for more than one project, provide separate application forms for each project.  Multiple phases (e.g. final design, construction) for the same project may be submitted as one application.  If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for each phase of the project (see Sections 3.1 and 3.2.2).  In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 Alaska Administrative Code (ACC) 107.605(1).  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are completed and funding for an advanced phase is warranted. Supporting documentation may include, but is not limited to, reports, conceptual or final designs, models, photos, maps, proof of site control, utility agreements, business and operation plans, power sale agreements, relevant data sets, and other materials. Please provide a list of supporting documents in Section 11 of this application and attach the documents to your application.  If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. Please provide a list of additional information; including any web links, in Section 12 of this application and attach the documents to your application. For guidance on application best practices please refer to the resource-specific Best Practices Checklists; links to the checklists can be found in the appendices list at the end of the accompanying REF Round 15 RFA.  In the Sections below, please enter responses in the spaces provided. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed.  If you need assistance with your application, please contact AEA’s Grants Coordinator by email at grants@akenergyauthority.org or by phone at (907) 771-3081. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 2 of 32 10/04/2022 REMINDER:  AEA is subject to the Public Records Act AS 40.25, and materials submitted to AEA may be subject to disclosure requirements under the act if no statutory exemptions apply.  All applications received will be posted on the Authority web site after final recommendations are made to the legislature. Please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application.  In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by AEA. If you want information to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential, it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 3 of 32 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) CIRI Energy, LLC Tax ID # 27-1620396 Date of last financial statement audit: 12/31/2021, parent company: Cook Inlet Region, Inc. (CIRI) Mailing Address: Physical Address: P.O. Box 93330, Anchorage, Alaska 99509- 3330 725 E. Fireweed Lane, Suite 800, Anchorage, AK 99503 Telephone: Fax: Email: (907) 263-5150 (907) 263-5559 ssettle@ciri.com 1.1 Applicant Point of Contact / Grants Coordinator Name: Suzanne Settle Title: President Mailing Address: P.O. Box 93330, Anchorage, Alaska 99509-3330 Telephone: Fax: Email: (907) 263-5150 (907) 263-5559 ssettle@ciri.com 1.1.1 Applicant Signatory Authority Contact Information Name: Suzanne Settle Title: President Mailing Address: P.O. Box 93330, Anchorage, Alaska 99509-3330 Telephone: Fax: Email: (907) 263-5150 (907) 263-5559 ssettle@ciri.com 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: Daniel Jensen (907) 263-5154 (907) 263-5559 djensen@ciri.com DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 4 of 32 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 #_N/A__, 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) DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 5 of 32 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. Beluga Renewable Resource Assessment 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 Longitude 61o13’ N, 151o00’ W 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Communities along the interconnected Railbelt grid will benefit from the development of affordable, clean and secure energy that decreases reliance on natural gas reserves. 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 DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 6 of 32 10/04/2022 ☒ Feasibility and Conceptual Design ☐ Construction 2.4 Project Description Provide a brief, one-paragraph description of the proposed project. CIRI Energy is planning to develop, own and operate a 40-MW wind and/or solar project on the privately owned lands of CIRI. Through the proposed resource and economic study within the scope of this grant application, the best resource and location will be identified to continue development. In subsequent phases, engineering, procurement, and construction studies will be completed to reach a final investment decision. In addition to providing information for the best resource and location, the data collected within the scope of this grant will provide data necessary to obtain commercial financing. The fully developed project will supply clean and affordable power to the Railbelt grid through a power purchase agreement negotiated with the interconnected utilities. 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 scope of this grant application is to 1) lease one met tower and one pyranometer (collectively “equipment”), 2) install the equipment, 3) maintain the installed equipment and collect data, 4) analyze the data to create a summary report of the resource capacity, 5) create a preliminary financial model for to illustrate targeted project economics, and 6) decide if the aforementioned analyses justify advancing the project to further development stages. 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 DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 7 of 32 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. Task # Milestones Tasks Start Date End Date Deliverables 1 Leasing Negotiate and execute a lease agreement for a period not less than 16-months for one pyranometer and 24-months for one met tower. Establish plan and execute any agreements necessary for data collection and equipment monitoring. 7/1/22 7/31/22 Executed lease agreements 2 Installation Install equipment, configure for data collection. 8/1/22 10/31/22 Equipment installed 3 Data collection Collect data, perform monitoring and maintenance as necessary to keep equipment performing. 11/1/22 10/31/24 Collected data 4 Resource Assessment Compile data to create summary report detailing wind and solar resource estimates. 11/1/24 1/31/25 Final report 5 Economic Analysis Create a financial model to estimate targeted costs for construction and energy prices of the project 2/1/25 3/31/25 Financial model 6 Preliminary Investment Decision Decide if the resource and projects economics justify advancing to phase III- Final Design and Permitting 4/1/25 4/30/25 Decision to advance or not to advance to next phase All of the above tasks are part of the “II. Feasibility and Conceptual Design” phase DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 8 of 32 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 $ 298,000 Cash match to be provideda $ 30,000 In-kind match to be provideda $ 24,000 Energy efficiency match providedb $ 0 Total costs for project phase(s) covered in application (sum of above) $ 352,000 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. CIRI Energy requests $298,000 as grant funds for to complete the renewable resource assessment consisting of 1) $126,000 for the installation and rental of one met tower for not less than 24-months, 2) $24,000 for the maintenance of one met tower for not less than 24-months, 3) $84,000 for the installation and rental of one pyranometer for not less than 16-months, 4) $24,000 for the maintenance of one pyranometer for not less than 16-months, and 5) $40,000 for the services to collect, analyze and report on the data. As a match towards the project, CIRI Energy, in conjunction with an outside consultant, will complete an economic analysis with the resource assessment to estimate construction costs and energy price, ultimately resulting in a go/no-go decision to advance to the next phase of the project (Final Design and Permitting) at a total cost of $54,000. CIRI estimates 192 hours internally at a standard rate of $125/hour (including fringe expenses) plus 100 hours externally (paid by CIRI) at a rate of $300/hour. 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. In the event the project exceeds the estimated costs, CIRI Energy has the approved authority and funding. 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. CIRI Energy note: as the project is still in feasibility and conceptual design, the final design, permitting and construction phases are estimates assuming a 40MW wind project is selected for construction. Reconnaissance Estimated $ 20,000 DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 9 of 32 10/04/2022 Feasibility and Conceptual Design Estimated $ 352,000 Final Design and Permitting Estimated $ 2,580,000 Construction Estimated $ 77,010,000 Total Project Costs (sum of above) Estimated $ 89,400,000 Metering/Tracking Equipment [not included in project cost] Estimated $ N/A 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) CIRI Energy is experienced as an independent power producer within the Railbelt. Consistent with prior development (specifically, Fire Island Wind), CIRI Energy will fund the development, engineering and construction of a project using equity and commercial debt financings. Completion of the economic analysis included in the scope of this grant will enable the project to move to the next phase of development which is expected to be funded by CIRI Energy. The extension of investment and production tax credits in the Inflation Reduction Act will be utilized to improve project economics. Remaining funding will be a combination of debt and CIRI Energy equity. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 10 of 32 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 $ $ $ DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 11 of 32 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 ) 1. Lease Agreement 7/31/22 $ 0 $ 0 $ 0 2. Installation 10/31/22 $ 50,000 $ 0 $ 50,000 3. Data Collection 10/31/24 $ 208,000 $ 0 $ 208,000 4. Resource Assessment 1/31/25 $ 40,000 $ 0 $ 40,000 5. Economic Analysis 3/31/25 $ 0 $ 49,000 Cash/In-kind $ 49,000 6. Preliminary Investment Decision 4/30/25 $ 0 $ 5,000 In-kind $ 5,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ 298,000 $ 54,000 $ 352,000 Budget Categories: Direct Labor & Benefits $ $ 24,000 $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ 298,000 $ 30,000 $ Construction Services $ $ $ Other $ $ $ TOTALS $ 298,000 $ 54,000 $ 352,000 DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 12 of 32 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 ) $ $ $ N/A $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 13 of 32 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 ) $ $ $ N/A $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 14 of 32 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. Projected costs have been estimated by CIRI Energy in conjunction with industry experts. Phase 1 – Reconnaissance was completed internally by CIRI Energy’s existing data and industry experts. Phase 2 - Feasibility and Conceptual Design, included in the scope of this grant application, is estimated from recent discussions with independent consultants and referenced to past experience. Phase 3 - Final Design and Permitting and Phase 4 – Construction, are estimates from past experience, recent discussions with industry vendors and cross-referenced with national benchmarks. 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? CIRI Energy will manage the phases outlined in section 3.1 – Schedule and Milestones. CIRI Energy will hire well known industry experts to install and collect resource data with regular status meetings to verify data is being collected and equipment is performing adequately. The renewable resource assessment will be contracted to an outside consultant. The economic analysis will primarily be completed in-house, with assistance and review from an outside consultant. By adhering to the schedule and milestones, the project will remain on track. The project manager identified in section 4.1.1 will have ultimate responsibility for ensuring the project meets milestones 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. CIRI Energy, as a subsidiary of CIRI, has extensive resources in an accounting department and a well-defined financial reporting structure. The project will be given a specific activity code and only costs directly related to the project scope will be charged to the activity code. All expenses go through multiple levels of review from the originator, through the CIRI Energy department and to the CIRI accounting department. Through this multi-level review process and structured account coding, no unallowable costs will be allocated to the project. Project specific accounting reports will be available on a monthly basis. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 15 of 32 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. Suzanne Settle  (907) 240-6861  ssettle@ciri.com 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. Rhonda Oliver  (907) 244-9025  roliver@ciri.com 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. Suzanne Settle Suzanne will serve as the Project Manager and main point of contact for the proposed project. In her role at CIRI, as VP Energy, Land and Resources, and CIRI Energy, as President, she is responsible for expanding investments in power infrastructure, mining, and oil and gas resources. She joined CIRI in 2009, leading a team that built an energy portfolio consisting of wind power, gas storage, natural gas combined-cycle power, and resource development investments in both the Cook Inlet and Nenana basins of Alaska. Ms. Settle holds a Bachelor of Business Administration in finance from the University of Texas at Austin, a Master of Administration in finance, with an energy focus, from the University of Houston and completed the Alaska Native Executive Leadership Program at Alaska Pacific University in May 2019. Ms. Settle was CIRI’s project lead on the Fire Island Wind Farm and she continues to oversee its successful operation. She is familiar with the business, technology, and institutional issues associated with renewable energy development on the Railbelt. She will bring this DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 16 of 32 10/04/2022 experience and expertise to this proposed project as the key CIRI representative and coordinator among stakeholders. As the Project Manager, Suzanne will be responsible for all task/milestones under section 3.1. The scope of services will be under contractual obligation with an outside vendor/consultant. CIRI has adequate resources for successful completion of remaining tasks. Rhonda Oliver Rhonda will be responsible for all grant financial reporting for the duration of the proposed project. In her position at CIRI, as VP Corporate Controller, she is responsible for the design, implementation and supervision of all accounting systems, financial reporting, financial controls, budgeting and treasury functions. She also ensures the internal control procedures of the company and its subsidiaries are followed. Oliver became controller in February 2010 and was promoted to vice president, corporate controller, in 2018. Before starting at CIRI in 1999 as director of accounting, she worked at Deloitte & Touche, an international accounting firm. Oliver holds a Bachelor of Business Administration in accounting from the University of Alaska Anchorage and is a certified public accountant. 4.2 Local Workforce Describe how the project will use local labor or train a local labor workforce. CIRI Energy’s ability, desire and commitment to capturing opportunities that spur growth, create jobs and contribute to local economies has made the Company an ideal and sought-after business partner in Alaska. With a vast network of local industry partners, CIRI Energy collaborated with nearly 100 local businesses during the development and construction of Fire Island Wind. Fire Island is a testament to CIRI Energy’s ability to develop, manage and operate large-scale projects that benefit the region and state of Alaska. CIRI Energy also owns multiple energy projects including wood biomass, gas fired generation and gas storage. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 17 of 32 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. CIRI Energy used a multi-phase process to complete the reconnaissance phase. The process began with reviewing all the land which CIRI Energy’s parent company, CIRI, owns and has complete site control. From those lands the specific criteria and analysis was completed to select the parcels that have the best chance for successful renewable resource development. Please reference the REF site selection memo included with this application for further detail. 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 scope of this grant application includes both wind and solar resource assessment, to determine the best resource for further development. Wind and solar are both well established resources with proven technology that mitigates risk. The land included with this application was determined to have the best opportunity for further development, as outlined in the attached site selection memo. 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 For the scope of this grant, to complete a resource assessment, there are no permits needed. The land is privately owned, by CIRI Energy’s parent company, CIRI. The height of the met towers will be less than the height that triggers an FAA permit. 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 DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 18 of 32 10/04/2022 you intend to approach land ownership and access issues. See the “Site control” section of the appropriate Best Practice Checklist for additional guidance. The land is privately owned by CIRI. CIRI Energy has access to the land to pursue a renewable resource assessment. Reference attached land conveyance documentation for proof of ownership. 5.3 Project Technical & Environmental Risk 5.3.1 Technical Risk 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. Site control of the location has already been established, eliminating the largest risk to successful completion of the project. CIRI Energy has already had early discussions with vendors to address the timing of the equipment lease agreement to facilitate, addressing some uncertainty in the award notification date and changing supply chain considerations to meet milestones. When an award is made task 1, lease agreements, as will be completed as expeditiously as possible. With the discussions began ahead of the award, a vendor will be ready to have equipment on site sooner. 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 CIRI Energy selected from land owned and controlled by CIRI to address any potential environmental risks. As outlined in the site selection memo attached, the project site location is based on setbacks from conflicts, populated areas, lack of wetlands or other protected areas. The land is located near developed infrastructure, to limit any further development constraints. CIRI Energy does not anticipate any risk to complete the project in consideration of the noted factors. While weather conditions to maintain equipment can be a challenge, CIRI Energy has experience working through adverse weather and is prepared to handle this risk. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 19 of 32 10/04/2022 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 Project is at the Phase 2, “Feasibility and Conceptual Design.” Accordingly, further evaluation of the existing energy system will be considered in later project phases. The requested REF grant funds will be used to identify any potentially fatal flaws and to collect the site specific and desktop data required to establish Project feasibility and whether to move the project to the “Final Design and Permitting” Phase. In this context, CIRI Energy plans to utilize the following process to analyze the Project and its potential interrelationship with and effects on the existing Energy System: 1. CIRI Energy has confirmed the CIRI owned Project site land described in this grant proposal is adjacent to existing 230 kV transmission infrastructure operated by Chugach Electric Association (Chugach) extending north from the Beluga gas fields and power generating station, to Anchorage. 2. It is assumed that the Project will be interconnected at 230 kV and will be electrically located within the Chugach Balancing Authority Area (BAA). 3. CIRI Energy has reviewed publicly available data relating to the capacity factor of the Beluga 230 kV lines that are in the area and for the Chugach system as well. This data suggests that it will be highly likely that the Project capacity can be interconnected to the Chugach system without causing substantial system network upgrades. 4. By virtue of its interconnection to the Chugach system, this project will also be able to transmit power to other Railbelt systems that are interconnected. 5. If the data collected using the grant funds indicates the project should move to Phase 3, Final Design and Permitting, CIRI Energy will promptly initiate the appropriate Open Access Interconnection process pursuant to the Alaska Railbelt Reliability Committee (RRC) reliability standards and the Chugach operating tariff. Through this process, the technical System Impact and System Facilities studies will outline in detail the Project effects on system voltage, current, reliability operations and impacts if any, from variability in generation. 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). The completed project will be a new generation resource. Specific generation units, distribution systems and production will be determined in later phases. The project will not take on technology DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 20 of 32 10/04/2022 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. The Project is expected to be utilized to displace existing thermal generation and will operate at lower cost and in a much more environmentally advantageous (i.e., no air emissions) manner than existing generation in the Chugach BAA. Therefore, it is not anticipated that the project will need to be justified on increased future electric demand, even though it is likely such increases in demand will occur. Further, it is expected that within the next few years AK will enact legislation establishing a Renewable Portfolio Standard or other clean energy mandate. When this happens, it will increase demand for generation projects such as this one. Also, energy demand and peak load is expected to increase with beneficial electrification and electric vehicle adoption in AK. There will soon be detailed information on forecasted demand for clean energy and capacity provided by Chugach and the Railbelt RRC during the development of the required Railbelt Integrated Resource Plan (IRP) pursuant to 3 AAC 46.220 and 3 AAC 46.230. CIRI Energy was deeply involved in the development of the Railbelt RRC operating tariff, rules, and reliability standards. Through this involvement CIRI Energy is confident that the Railbelt will implement significant amounts of new clean generation and system modifications to enable transition to a more renewable energy supply. Projects like this one proposed will be positioned to assist AK in that transition to cleaner more healthful energy supplies 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. The proposed system design will be completed in later phases. An engineering, procurement and construction study will be completed to address these specific questions after the resource assessment is completed. risk and will utilize industry standard equipment to capture reliable wind and solar data. Only well established and proven industry consultants to translate the data with a bankable resource assessment will be contracted. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 21 of 32 10/04/2022 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. The met tower will be a 60 meter tilt up tower with 3 levels of anemometers and bird and bat monitoring equipment. The cost to install is $30,000 and the total cost of rental is $96,000 ($4,000 per month). There will also be $1,000 per month to monitor and maintain the equipment over the course of the 24-month lease. The pyranometer will consist of multiple sensors, temperature gauges and soil station. The cost to install is $20,000 and the total cost of rental is $64,000 ($4,000 per month). There will also be $1,500 per month to monitor and maintain the equipment over the course of the 16-month lease. Quality checks will be conducted on a weekly basis on all installed equipment. 5.5.2 O&M reporting Please provide a short narrative about the methods that will be used to gather and store reliable operations and maintenance data, including costs, to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications In conjunction with the equipment lease and contracted resource assessment, a nationally accredited external consultant will calibrate the equipment and perform data collection over the lease period. The data is provided directly through a cell or satellite signal. SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility 6.1.1 Economic Benefit Annual Lifetime Anticipated Natural Gas Fuel Displaced for Power Generation (MCF) 840,960 21,024,000 Anticipated Fuel Displaced for Heat (MCF) N/A N/A Total Fuel displaced (MCF) 840,960 21,024,000 Anticipated Natural Gas Fuel Displaced for Power Generation ($) $6,943,676 (year 1) $132,057,830 Anticipated Fuel Displaced for Heat ($) N/A N/A Anticipated Power Generation O&M Cost Savings N/A N/A Anticipated Thermal Generation O&M Cost Savings N/A N/A DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 22 of 32 10/04/2022 Total Other costs savings (CO2 reduction,) $1,779,808 $29,212,984 Total Fuel, O&M, and Other Cost Savings $8,723,484 (year 1) $161,270,814 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. CIRI Energy utilized the AEA REF Round 15 Benefit-Cost model to calculate direct economic benefit and has included the model as an attachment. 1. Using the Project pro-forma capital cost, at a 30% capacity factor the AEA model calculates a direct economic benefit (NPV) of $1.5 million/yr. and $37.1 million lifetime. This includes the assumption that avoided CO2 gas has a societal value of $40/tonne (metric ton). 2. The Project will result in 44,495 tonnes of avoided CO2 emissions/year (AEA model data) 3. Even if the assumption is made that avoided CO2 emissions have $0 benefit, the AEA model indicates a NPV of net lifetime benefits from the project of $7.9 million. The direct economic benefits from the proposed project will be substantial. In addition to the values referenced above, the following direct benefits to the people of Alaska will derive from this project. 1. More than 200 construction jobs. 2. Five to 10 permanent jobs for project operators. 3. Local economic stimulus from investment and construction activity in the community where the project will reside. 4. Local AK contractors will be utilized when possible. 5. The project will produce substantial property tax benefits. 6. The avoided Greenhouse Gas emissions will provide for better air quality in the community. 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 DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 23 of 32 10/04/2022  Other factors CIRI Energy will enter into a long-term power purchase agreement to mitigate risk that short term fluctuations in power prices will affect Project profitability. In addition, the project produces renewable energy and has zero greenhouse gas emissions. It is likely that the AK legislature will soon enact Renewable Portfolio Standard (RPS) legislation. When this happens the demand for clean renewable energy in AK will increase. The project is exposed to fluctuations in labor, steel, and other commodity costs. If those costs continue to increase, the effect on NPV of Net benefits from the project as calculated by the AEA model should be mitigated by the Inflation Reduction Act tax credits which were recently enacted. It is CIRI Energy’s understanding that the AEA model does not consider tax credits in its calculation of net benefits, so the tax credits available can be used by owner keep the actual capital cost of the project at or below the levels estimated herein, thus preserving the benefits to the Alaskan people. CIRI Energy intends to enter into long term operations and maintenance service agreements with the wind turbine manufacturer to mitigate or eliminate the risk of poor performance due to deferred maintenance. The economic and environmental benefits of this project derive from displacing existing fossil generation which is expensive and damaging to the environment. Because this project will displace existing generation and is not justified based on serving future load growth, changes in overall demand for electricity will have little to no effect on the project benefits. The project is designed to be able to supply clean power to the entire Railbelt region, so other local project developments if any will not have a negative competitive impact on the Project. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 24 of 32 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 The project’s property tax payments will provide societal benefits in the local community. The project may entice new businesses to locate within the community. The employment associated with constructing and operating the project will also accrue largely to the local community. The unique nature of the project (by far the largest wind project in AK) may help increase local tourism benefits. The project site will include roads and pathways that can be accessed by the public subject to certain limitations related to safety requirements. The project will stimulate long term economic benefit due to needs for support services including without limitation, food, beverage, lodging, heavy lift equipment contractors, heavy haul equipment contractors, and site maintenance (snow clearing, road maintenance, etc.) contractors. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 25 of 32 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 CIRI Energy is experienced in and has a successful track record in AK and other states relating to long term, sustainable operation of wind farm projects. CIRI Energy developed, constructed, and operates the Fire Island Wind Project near Anchorage. That project recently attained its 10th operating anniversary with no major unplanned outages since inception. CIRI Energy also has prior experience with operations of large-scale wind projects in Washington, Texas, Nebraska, and other states. In the case of this proposed project, CIRI Energy will employ its prior successful practice of engaging the wind turbine manufacturer to perform full scope operations and maintenance of the wind and electrical equipment on site. In addition, CIRI Energy will deploy permanent local staff to optimize the performance of the project. CIRI Energy will acquire insurance on the project sufficient to protect the long-term viability of it, even in event of unforeseen negative events. The scope of the long-term O&M contract will require the supplier to place local technical staff on site, to perform repair tasks, training of technicians and project operating personnel and also to continuously monitor (both locally and remotely) the operation of the project to react to unplanned outages. Spare parts will be stocked locally to minimize wind turbine down time, and programmed maintenance will be performed during the least windy times of year. Once the feasibility of the proposed project has been confirmed, CIRI Energy can develop and supply to AEA a detailed business and operations plan as required. 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. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 26 of 32 10/04/2022 CIRI Energy is an active and well-respected member of the Alaska business community. Its headquarters are in Anchorage and accordingly, CIRI Energy will provide local and sophisticated billing, accounting, collections and asset management resources for benefit of the Project. The expected power sale will be to one or more of the Railbelt utilities, and therefore the risk of non- payment is nil. The power sale rates will be derived based on detailed project financial modeling that analyzes actual Project capital and operating cost as well as a reasonable return. The derivation of power sale rates will be reviewed and approved by a utility buyer, CIRI Energy’s parent company and the project lenders (who will be sophisticated financial institutions) as well. The financial structure of the CIRI Energy’s project company will include operating capital as well as cash reserves for unexpected major maintenance and cash reserves to backstop CIRI Energy’s ability to cover its debt service obligations in event of a temporary loss of revenue from the project, even if such loss of revenue could extend for multiple months. 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)  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) It is expected that this Project will produce clean energy and environmental benefits at or slightly below the cost that local utilities are paying for power supply currently. Therefore little, or no upward rate pressure is expected to result from a utility buying power from this project. The expected cost-based rate for power from this project will compare favorably with the current avoided cost electric rates of every Railbelt utility. The Project will qualify for Investment Tax Credit (ITC) and Production Tax Credit (PTC) pursuant to the Inflation Reduction Act (IRA) that was recently enacted. This will help keep the power sale rate from the Project as low as reasonably possible. Green Tags (aka Environmental Attributes) may also result in additional future revenue; however, the Project will not rely on Green Tag sales for financial viability. Total expected customer revenue to support the Project will range (depending on the actual completed cost of the Project) from $5.8 to $6.8 million/year. It is anticipated that the revenue will be contracted long term, perhaps for the entire project life via the utility power sale agreement. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 27 of 32 10/04/2022 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. The project will be able to deliver power to one or more of the interconnected Railbelt Utilities, the power contract rate will be negotiated and based on the final completed cost of the Project. As noted herein it is anticipated that the power sale price will be at or slightly below the purchasing utility’s avoided power cost. The expected cost-based rate for power from this project will compare favorably with the current avoided cost electric rates of every Railbelt utility. Those avoided cost rates are publicly available and range from about $0.06 to over $0.08/kWh. Given the likelihood of passage for Renewable Portfolio Standard legislation there is good probability that demand from utilities for clean renewable energy will increase and remains strong for several years into the future. 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. CIRI Energy’s parent company, CIRI, owns and has site control for the land selected. Reference the attached REF site selection memo for further information how the reconnaissance phase was completed. CIRI Energy intends to begin work immediately upon notification of grant award, starting with executing an equipment lease agreement. As mentioned earlier, CIRI Energy has had preliminary discussions with vendors, in anticipation of a grant award. 8.2 Demand- or Supply-Side Efficiency Upgrades DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 28 of 32 10/04/2022 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. N/A 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. HB301 and SB179 are parallel bills currently with the state legislature, proposing a renewable portfolio standard for the Railbelt. If passed as written, 40% of electrical generation on the Railbelt would be required to come from renewable sources by 2040. In June 2022, Golden Valley Electric Association’s board of directors adopted the strategic generation plan, including targets for added wind resources through a power purchase agreement. Chugach Electric Association has made similar statements recently. 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. In 2011, Alaska Energy Authority awarded $24,850,000 for the construction of the submarine transmission system to connect Fire Island Wind with the Chugach Electric Association grid (grant agreement number 7910002). While the award was made to Chugach, Cook Inlet Transmission, LLC (a wholly owned subsidiary of CIRI Energy) developed, permitted, designed, engineered, procured, constructed and, upon completion thereof, transferred and conveyed the transmission system to Chugach. Cook Inlet Transmission was retained to act as Chugach’s agent under the grant agreement. The scope of the grant was completed within the proposed timeline and cost. The completed submarine transmission system continues to deliver power to Chugach, to the benefit of its customers and the great Southcentral Alaska region. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 29 of 32 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. Please find attached: 2. REF Site Selection Memo 3. Renewable Resource Phase 1 Map 4. Conveyance Documents SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below, please provide a list of additional information submitted for consideration. Please find attached: 5. Economic Model 6. CIRI Energy Governance Letter 7. Resumes (to be excluded from web posting) DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 30 of 32 10/04/2022 SECTION 13 – AUTHORIZED SIGNERS FORM Community/Grantee Name: CIRI Energy, LLC Regular Election is held: N/A Date: N/A Authorized Grant Signer(s): Printed Name Title Term Signature Suzanne Settle President, CIRI Energy, LLC VP, Energy, Land and Resources, Cook Inlet Region, Inc. N/A 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 Sophie Minich President and CEO, Cook Inlet Region, Inc. N/A Grantee Contact Information: Mailing Address: PO Box 93330 Anchorage, AK 99509-3330 Phone Number: (907) 263-5150 Fax Number: (907) 263-5559 Email Address: ssettle@ciri.com Federal Tax ID #: 27-1620396 Please submit an updated form whenever there is a change to the above information. DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 31 of 32 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 Suzanne Settle Signature Title President Date December 5, 2022 DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4 Renewable Energy Fund Round 15 Grant Application – Standard Form AEA 23046 Page 32 of 32 10/04/2022 DocuSign Envelope ID: 8021C587-88BC-4360-BE99-97C42FC4AAD4