HomeMy WebLinkAboutport heiden ref 14 1Renewable Energy Fund Round 14
Grant Application – Standard Form
AEA 23001 Page 1 of 34 11/16/2021
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)
Tax ID #
Date of last financial statement audit:
Mailing Address: PO BOX 49050 Port
Heiden, AK. 99549
Physical Address: 2200 James ST Port
Heiden, AK. 99549
Telephone: Fax: Email:
(907) 837 - 2209 (907) 837 - 2248 Scott5025@yahoo.com
1.1 Applicant Point of Contact / Grants Coordinator
Name: Scott Anderson Title: Mayor
Mailing Address: City of Port Heiden, PO Box 49050 99549
Telephone Fax: Email:
(907) 837 - 4032 Scott5025@yahoo.com
1.1.1 Applicant Signatory Authority Contact Information
Name: Title:
Mailing Address:
92 - 6009671
907 2048
Mayor
Port Heiden, AK.
PO Box 49050 Port Heiden, AK. 99549
City
City of Port Heiden
Renewable Energy Fund Round 14
Grant Application – Standard Form
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Telephone: Fax: Email:
907-797-2269 907-797-2211
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
907
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/2021-REF-Application (Any exceptions should be clearly noted and submitted with the
application.) (Indicate yes by checking the box)
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☒ 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)
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SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Atmautluak Wind Diesel Battery Project
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
[Other description of location]
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
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
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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
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2.4 Project Description
Provide a brief, one-paragraph description of the proposed project.
The City of Port Heiden is requesting $215,000 from the REF to conduct reconnaissance and
conceptual design studies for the development of a 150 to 450 kW hydro project at two sites,
Reindeer and Barabara creeks.
2.5 Scope of Work
Provide a short narrative for the scope of work detailing the tasks to be performed under this
funding request. This should include work paid for by grant funds and matching funds or performed
as in-kind match.
• Desk study
• Resource and market characterization
• Technology survey, site plan and cost estimate
2.6 Previous REF Applications for the Project
See Section 1.15 of the RFA for the maximum per project cumulative grant award amount
Round
Submitted
Title of application Application
#, if known
Did you
receive a
grant? Y/N
Amount of REF
grant awarded
($)
None
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Grant Application – Standard Form
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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.
3.2 Budget
As such the City of Port Heiden is applying for $225,000 in to initiate a staged series of
reconnaissance level development studies, to more accurately determine its hydro development
potential.
The conceptual design is divided into three general phases, which if successful will lead to
permitting and final design and then to financing and construction.
The initial reconnaissance is divided into three stages:
1. Evaluation of available data:
2. Detailed resource assessement
3. Water resource reservation
The proposed tasks by stage include:
Phase 1: Proposed budget: $45,000
Task #1.1: Review of reconnaissance level cost estimates based on estimated development costs and
energy use projections over the next 50 years. The system should be sized to meet the heat, power
and transportation needs projected over that future.
Task #1.2: Completion of site market survey for projection of heating, power and transportation
needs over the selected time horizons of 20, 30 and 50 years.
Task #1.3: Hydro development onsite survey by trained hydrologist experienced in hydro
development. The previously proposed projects consisted of run of the river systems, with an upper
diversion structure. There are no records indicating a that specific on site survey has been
conducted to initially locate structures. A preliminary on-site assessment will include maps, photos,
and selected study areas. This portion of the study should include any pertitent physical, biological,
water chemistry and socio-economic data. This portion of the study will be required to understand
and describe the recreational, habitat and scientific knowledge of the proposed stream development.
Phase 2: Budget: $150,000
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Task #2.1: Resource survey, quantification of specific amounts of water and head projected to be
available is essential of determining the resource capability. Identify and quantify, as appropriated,
flow rates, quantities, surface water elevations, depth, drainage areas, etc. as they relate to the daily,
durations and months of the year during which a water use reservation will be proposed, and flow
and release schedules. This work will involve on stream gauging and hydrological studies.
Task 2.2: A study plan will be developed and documented which includes the instrumentation and
methodology used, data collected, method of analysis, and need for a specific quantity of water flow
and head. The purpose of this work is to more carefully characterize the resource of both Reindeer
and BaraBara Creeks. Both should be surveyed to determine the best development opportunities.
The deliverable from this scope of work will include: maps, photos, aerial photos, calculations,
pertinand other documents which will be required to fully describe the potential resource.
Task #2.3: This task involves the development of a preliminary cost estimate. A preliminary
construction plan and cost estimate will be developed base on the available resource and market
determination. This will involve a technology survey, route planning, and geotechnical desk study
for preliminary structure design and placement.
Task 3: Budget $30,000
Task #3.1: Application for water rights: A permit application for water rights with the Department
of Natural Resources. The purpose of completing is to establish the terms and condition for the
reservation of water rights. The certification of water rights will determine the potential terms and
conditions for use and development. This step will lead a definition of property ownership, site
control and extent of additional studies required for regulatory requirements.
The project team will be led by Mike Dahl of Polar Consult, he will be assisted by Joel
and Dennis Meiners of Intelligent Energy Systems of Anchorage.
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 $ 225,000
Cash match to be provideda $
In-kind match to be provideda $
Energy efficiency match providedb $
Total costs for project phase(s) covered in application (sum of
above)
$ 225,000
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.
The City of Port Heiden
a Attach documentation for proof (see Section 1.18 of the Request for Applications)
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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.
The City of Port Heiden is
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] $ 45,000
Feasibility and Conceptual Design [Actual/Estimated] $ $180,00
Final Design and Permitting [Actual/Estimated] $ tbd
Construction [Actual/Estimated] $ tbd
Total Project Costs (sum of above) Estimated $ tbd
Metering/Tracking Equipment [not included in project
cost]
Estimated $ tbd
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)
To be determined.
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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.
Phase #1: Feasibility and
Conceptual Design
Phase 1 application
review
Task #1.1: Review of
reconnaissance level
6-8 weeks
after
notice to
proceed
$ 45,000 $ 45,000
Task #1.2: Completion
of site market assessment
Task #1.3: Hydro site
assessment
Phase 2: Resource
assessment
12-52
weeks
after
funding
$ 150,000 $ 150,000
Task #2.1: Resource
analysis &, quantification
Task 2.2:Resource
instrumentation and
methodology ,
Task #2.3: Technology
survey preliminary cost
estimate
Phase 3: water rights
reserve application
30 - 52
weeks
after NTP
$ 30,000 $ 30,000
TOTALS $ 225,000 $ 225,000
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ 25,000 $ $ 25,000
Equipment $ $ $
Materials & Supplies $ 30,000 $ $ 30,000
Contractual Services $ 170,,000 $ $ 170,000
Construction Services $ $ $
Other $ $ $
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TOTALS $ 225,000 $ $ 225,000
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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 Project costs are provided by experienced suppliers with knowledge of the technologies, the
applications and integration requirements.
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 project budget will be reported on quarterly basis. The performance of the project will be
monitored through monthly performance reports for a period of two years.
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 of Port Heiden will be the grantee, and the financial reporting part of the normal
accounting and reporting processes by the city manager. The project will maintain quick book files
and separate grant financial accounting.
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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.
The Project Manager will be Dennis Meiners of IES, manager of operatio Anchorage-based Intelligent Energy
Systems (IES), assisted at the village level by Scott Anderson, mayor of Port Heiden, and project assistant Tara
O’Hanley. The prinicipal investigator will be Mike Dahl of Polar Consult.
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.
City Clerk of Port Heiden
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 principal investigator for this portion of the project, is Mike Dahl, Senior Civil Engineer at
Polarconsult Alaska. Polar Consult has been responsible for the development of 10 successful
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hydro project in Alaska. This project will benefit from Mr. Dahl’s practical experience. The study
will be assisted by Dennis Meiners and Tara O’Hanley of Intelligent Energy Systems of
Anchorage. Polar Consult has over a 30 year history in hydro development in Alaska. IEs has
experience with project development in remote communities. IES was the first firm to introduce
electric thermal storage and is leading the way in transitioning village energy systems to 100%
renewables.
4.2 Local Workforce
Describe how the project will use local labor or train a local labor workforce.
The city of Port Heiden has a number of capable construction and crafts people and equipment
which could be involved in construction.
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SECTION 5 – TECHNICAL FEASIBILITY
The community of Port Heiden has sustained itself for over 100 years, based on the fishing industry,
and access to natural resources. The community is likely to be around for another 100 years. A
properly designed hydro project could benefit the community for the next 50 years or more, and this
opportunity needs to be explored in more detail. The City of Port Heiden is requesting $215,000
from the REF to conduct reconnaissance and conceptual design studies for the development of a
150 to 450 kW hydro project in Port Heiden.
The economics of any energy development project will be impacted by the natural resources
available, the technology selected and the market to be served. Additionally, the economics and
obstacles to development will be impacted by the regulatory environment.
The Hydro potential for the community of Port Heiden has been sited in several reports.
Most recently a Department of Energy’s (DOE) 2014 study identified the development of either
reindeer creek and Barabara Creek as candidates for new community hydropower opportunities in
the U.S. In 2016, ORNL met with the U.S. Department of Energy to discuss
hydropower development opportunities to support Alaska Native villages. ORNL, with AEA’
collaboration is evaluating opportunities to increase hydropower generation for these villages
based on the NSD assessment, recent project license applications, and candidate Alaska
Renewable Energy Fund projects.
(http://energy.gov/downloads/doe-public-access-plan).
Using data for village location, population, diesel consumption, generation and cost, and
proximity to existing hydropower and transmission, an initial NSD site feasibility study was
performed. To screen out villages and potential hydropower sites that did not meet high-level
feasibility criteria, seven filters were used. Based on these filter values, only eleven villages
passed all criteria. Port Heiden was identified as a promising candidate.
Reconnaissance funding is being requested from the Renewable Energy Fund to develop this project
beyond the pre-feasibility stage through a more detailed conceptual design. This level of analyses is
needed to provide sufficient insight into hydropower potential in Port Heiden.
Previous studies were based on preliminary cost estimates compared to the present worth of
meeting the demand for electricity using diesel generation. These cursory estimates tended be in
the $10’s of millions of dollars, and therefore the development has been written off as too
expensive, and economically unwise.
A number of factors have changed since previous studies, which may significantly impact hydro
development in Port Heiden. First, there is a strong interest in community energy security through
the development of non-fossil fuel clean energy. Secondly, market for the application of clean
energy has expanded beyond electrical power to encompasw heat and transportation market. So the
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Grant Application – Standard Form
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demand for electricity is now greater in Port Heiden has grown. Third, the community has
considerable construction expertise and equipment which could be deployed to the project, thus
potentially bringing down costs.Thus local capacity to address the construction and operation of a
hydro facility and transmission systems have significantly improved over the 15 years. And finally
there are likely to be advances in technologies, especially with respect to packaged hydro systems
and construction method will offer opportunities for higher efficiencies and lower costs.
That being said there may still be significant obstacles to the development which have yet to reveal
themselves.
As such the City of Port Heiden is applying for $250,000 in to initiate a staged series of
reconnaissance level development studies, to more accurately determine its hydro development
potential.
The conceptual design is divided into three general phases, which if successful will lead to
permitting and final design and then to financing and construction.
The initial reconnaissance is divided into three stages:
4. Evaluation of available data:
5. Detailed resource assessement
6. Water resource reservation
The proposed tasks by stage include:
Phase 1: Proposed budget: $45,000
Task #1.1: Review of reconnaissance level cost estimates based on estimated development costs and
energy use projections over the next 50 years. The system should be sized to meet the heat, power
and transportation needs projected over that future.
Task #1.2: Completion of site market survey for projection of heating, power and transportation
needs over the selected time horizons of 20, 30 and 50 years.
Task #1.3: Hydro development onsite survey by trained hydrologist experienced in hydro
development. The previously proposed projects consisted of run of the river systems, with an upper
diversion structure. There are no records indicating a that specific on site survey has been
conducted to initially locate structures. A preliminary on-site assessment will include maps, photos,
and selected study areas. This portion of the study should include any pertitent physical, biological,
water chemistry and socio-economic data. This portion of the study will be required to understand
and describe the recreational, habitat and scientific knowledge of the proposed stream development.
Phase 2: Budget: $150,000
Renewable Energy Fund Round 14
Grant Application – Standard Form
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Task #2.1: Resource survey, quantification of specific amounts of water and head projected to be
available is essential of determining the resource capability. Identify and quantify, as appropriated,
flow rates, quantities, surface water elevations, depth, drainage areas, etc. as they relate to the daily,
durations and months of the year during which a water use reservation will be proposed, and flow
and release schedules. This work will involve on stream gauging and hydrological studies.
Task 2.2: A study plan will be developed and documented which includes the instrumentation and
methodology used, data collected, method of analysis, and need for a specific quantity of water flow
and head. The purpose of this work is to more carefully characterize the resource of both Reindeer
and BaraBara Creeks. Both should be surveyed to determine the best development opportunities.
The deliverable from this scope of work will include: maps, photos, aerial photos, calculations,
pertinand other documents which will be required to fully describe the potential resource.
Task #2.3: This task involves the development of a preliminary cost estimate. A preliminary
construction plan and cost estimate will be developed base on the available resource and market
determination. This will involve a technology survey, route planning, and geotechnical desk study
for preliminary structure design and placement.
Task 3: Budget $30,000
Task #3.1: Application for water rights: A permit application for water rights with the Department
of Natural Resources. The purpose of completing is to establish the terms and condition for the
reservation of water rights. The certification of water rights will determine the potential terms and
conditions for use and development. This step will lead a definition of property ownership, site
control and extent of additional studies required for regulatory requirements.
The project team will be led by Mike Dahl of Polar Consult, he will be assisted by Joel
and Dennis Meiners of Intelligent Energy Systems of Anchorage.
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 Hydro potential for the community of Port Heiden has been sited in several reports.
Most recently a Department of Energy’s (DOE) 2014 study identified the development of either
reindeer creek and Barabara Creek as candidates for new community hydropower opportunities in
the U.S. In 2016, ORNL met with the U.S. Department of Energy to discuss hydropower
development opportunities to support Alaska Native villages. ORNL, with AEA’
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collaboration evaluated opportunities statewide to increase hydropower generation for villages
based on the NSD assessment, recent project license applications, and candidate Alaska
Renewable Energy Fund projects. The development of Reindeer Creek in Port Heiden was
identified as a potentially viable candidate for development.
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.
Wind, Wind to heat
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
Purpose of this project is determine viability and required permitting.
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.
Port Heiden, City: Evaluaion of Reindeer and Barabara Creeks for Hydro power development
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.
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N/A to be determined
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
To be determined
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.
.
Not currently Applicable
5.4.2 Existing Energy Generation Infrastructure and Production
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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: 100 kW Xant M-21 turbine
Unit 2: 100 kW Xant M-21 turbine
Diesel unit 1: John Deere 4045, 99 kW prime power
Diesel unit 2: John Deere 4045, 99 kW prime power
Diesel unit 3: John Deere 6090, 210 kW prime power
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.
The electrical distribution consists of approximately 10 miles of underground 3 phase 12,470 Vac.
Sections of the distribution have been and are scheduled for upgrading and replacement.
5.4.2.3 Existing Thermal Generation Units N/A
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) Yes, the powerplant provides recovered heat to the
school and firehall building.
5.4.2.4 O&M and replacement costs for
existing units
Power Generation Thermal Generation
i. Annual O&M cost for labor Varies on average
$90,000 annually
ii. Annual O&M cost for non-labor $ varies, approx. $
120,000/year
iii. Replacement schedule and cost for
existing units
Two units rebuilt on
site approximately
every 3 years, due to
parallel requirements.
Will require
replacement with
larger capacity due to
anticipated future
growth
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5.4.2.5 Annual Electricity Production and Fuel Consumption (Existing System)
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
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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.
A task in this study is to determine future load growtn and the potential use of hydropower to displace fuel
used for heating and transportation.
The community desires to add a fish processing facility that is expected to require 150 kW or more 5 months
of the year.
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 Hydro potential for the community of Port Heiden has been sited in several reports.
Most recently a Department of Energy’s (DOE) 2014 study identified the development of either
reindeer creek and Barabara Creek as candidates for new community hydropower opportunities in
the U.S. In 2016, ORNL met with the U.S. Department of Energy to discuss
hydropower development opportunities to support Alaska Native villages. ORNL, with AEA’
collaboration is evaluating opportunities to increase hydropower generation for these villages
based on the NSD assessment, recent project license applications, and candidate Alaska
Renewable Energy Fund projects.
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
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5.4.4.2 Proposed Thermal Generation Units (if applicable) N/A
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 Hydro
100%,
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
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
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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 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. To be
determined
Based on current load and usage
1. $ 78840 (8760hour. s of diesel off operation @
$9.00/hour)
2. Fuel displaced for power generation, 48,000
gallons ( @ 3.50/gallon = $168,000)
3. Fuel displaced for heating: 50,000 gallons (
x $3.50 =$175,000)
Approx saving, $420,000 + annually
5.4.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of
operation)
Using an average fuel cost of $ 3.50 /gallon for fuel displaced for power generation, and a generous
conversion efficiency of 14/kWh/gal, this potential value of a diesel-off kWh is $0.30/kWh, whereas heating
fuel at $6.93 for 30 kWh per gallon is the equivalent fuel value of $0.23/kWh.
Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
Other
Unit cost
($)
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Annual
Units
23000
Total
Annual
cost ($)
$80,500
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.
To Be Determined
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
To be determined
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) now
48,000 gallons @
$3.50
2,400,000/50 year
Anticipated Fuel Displaced for Heat
(gallons)
50,000 gallons @
$3.50
2,500,000/50 year
Total Fuel displaced (gallons) 48,000 4,900,000 gallons (50year
replacement)
Anticipated Diesel Fuel Displaced for Power
Generation ($)
$168,000 $ 8,400,000
Anticipated Fuel Displaced for Heat ($) $175,000 $ 8,750,000
Anticipated Power Generation O&M Cost
Savings
$36,000 $1,800,000(50 year)
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Anticipated Thermal Generation O&M Cost
Savings
TBD
Total Other costs savings (taxes, insurance,
etc.)
TBD
Total Fuel, O&M, and Other Cost Savings $estimated $1,049,510 (est 50 year)
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/2021-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.
To be determined
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
To Be Determined
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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.
Any power generated with locally sourced fuel means less money spent on imported diesel, decreased
environmental hazard of delivery and storage of bulk fuel, and increased local job opportunities.
Renewable energy resource availability (kWh per month) tbd
Estimated direct sales to private sector businesses (kWh) tbd
Revenue for displacing diesel generation for use at private sector businesses ($) tbd
Estimated sales for use by the Alaskan public (kWh) tbd
Revenue for displacing diesel generation for use by the Alaskan public ($) tbd
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
This community can become completely independent of fossil fuels.
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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
To be determined
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.
To be determined
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
To be determined
7.1.2.2 Power Purchase/Sale
The power purchase/sale information should include the following:
• Identification of potential power buyer(s)/customer(s)
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• 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.
To Be Determined
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.
The community and utility are prepared to move forward with the project as soon as funding is available.
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.
The project involves potentially the complete displacement of fossil fuels with hydropower.
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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 November 16, 2021. Please note that
letters of support from legislators will not count toward this criterion.
The community has been working toward reduce dependency on fossil fuels for many years.
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.
N/A
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.
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SECTION 13 – AUTHORIZED SIGNERS FORM
Community/Grantee Name:
Regular Election is held:
Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
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
Grantee Contact Information:
Mailing Address:
Phone Number:
Fax Number:
Email Address:
Federal Tax ID #:
Please submit an updated form whenever there is a change to the above information.
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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
Signature
Title
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Date