HomeMy WebLinkAboutCity of Galena - Resolution 2022-05I GALENA,ALASKA
2 RESOLUTION 2022-05
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4 A RESOLUTION BY THE CITY OF GALENA, ALASKA TO APPROVE A REQUEST
5 FOR FUNDING TO THE ALASKA ENERGY AUTHORITY'S RENEWABLE ENERGY
6 FUND ROUND 14 FOR THE FINAL DESIGN AND CONSTRUCTION OF A
7 COMMUNITY SCALE SOLAR PHOTOVOLTAIC AND BATTERY SYSTEM FOR
s GALENA
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10 WHEREAS, the City of Galena, Alaska is incorporated as a First -Class city and is governed by
11 an elected City Council; and
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13 WHEREAS, the City of Galena's electric rates of $0.596/kWh are about five times the national
14 average; and
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16 WHEREAS, the City of Galena is currently implementing a power plant upgrade consisting of
17 new switchgear, generator replacements, and other critical power system improvements, with the
18 majority of the work funded by a $1.9 million loan; and
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20 WHEREAS, these power plant upgrades are necessary for the implementation of a planned high
21 penetration renewable energy system, specifically solar photovoltaic (PV) and battery storage,
22 that will be able to operate in "diesel -off' mode; and
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24 WHEREAS, high penetration solar PV and battery hybrid systems have been successfully
25 demonstrated in rural Alaska and all over the world and are a mature technology that is reducing
26 fossil fuel consumption and has the potential to increase grid reliability and reduce diesel
27 generator Operation and Maintenance costs; and
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29 WHEREAS, the City of Galena received a USDA -Rural Utilities Service High Energy Cost
30 Grant for $1.5 million that will partially fund design and construction of a high penetration Solar
31 PV-Battery-Diesel Hybrid System that has not yet been implemented; and
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33 WHEREAS, the City of Galena is applying to the Renewable Energy Fund Round 14 in January
34 2022 for $2.0 million to fully develop the final design and support construction of a high
35 penetration solar PV-battery system to connect to their stand-alone diesel power plant and
36 distribution system; and
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38 WHEREAS, the City of Galena will commit to utilizing the $1.5 million dollars from the USDA
39 High Energy Cost Grant as match and will commit to $6,000 of in -kind match; and
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41 WHEREAS, the project team has identified 3 suitable locations for the construction of the Solar
42 PV panels and will finalize the location and secure site control during the design phase of the
43 project; and
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45 WHEREAS, if awarded, the City of Galena and all City residents will directly benefit by having
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a renewable energy project that will improve energy security and reliability and also reduce
fossil fuel consumption and lower electricity production costs.
NOW THEREFORE BE IT RESOLVED: the City of Galena Council approves the application
for the 2022 Alaska Energy Authority's Renewable Energy Fund Program for $2.0 million and
authorizes the City of Galena to use the USDA High Energy Cost Grant award and City of Galena
in -kind for match if the AEA REF funding request is awarded.
APPROVED and SIGNED this 131" day of January, 2022.
14 ATTEST:
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17 Carolyn 067,City Clerk
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Edward Pitka, Mayor