HomeMy WebLinkAboutAEA Application Form.docxRenewable Energy Fund Round 14
Grant Application – Standard Form
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form for
Round 14 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/2021-REF
-Application.
What follows are some basic information and instructions for this application:
●The Alaska Energy Authority (AEA) expects this application to be used as part of a two-year
solicitation cycle with an opt-out provision in the second year of the cycle.
●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 14 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.
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Renewable Energy Fund Round 14
Grant Application – Standard Form
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.
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Renewable Energy Fund Round 14
Grant Application – Standard Form
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)
CalWave Power Technologies
Tax ID # 82-0972139
Date of last financial statement audit: 06/10/2021
Mailing Address:Physical Address:
1 Sapphire Ct 1 Sapphire Ct
Hercules, CA 94547 Hercules, CA 94547
Telephone:Fax:Email:
1.1 Applicant Point of Contact / Grants Coordinator
Name: Ryan Davidson Title: Business Development Associate
Mailing Address: 1737 Wroxton Ct, Houston, TX 77005
Telephone:Fax:Email:
(314) 604-1235 ryan@calwave.energy
1.1.1 Applicant Signatory Authority Contact Information
Name: Marcus Lehmann Title: CEO
Mailing Address:
401 Avila St #140, San Francisco, CA 94123-1128
Telephone:Fax:Email:
(510) 508-9897 marcus@calwave.energy
1.1.2 Applicant Alternate Points of Contact
Name Telephone:Fax:Email:
Dan Petcovic (858) 752-2354 dan@calwave.energy
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Renewable Energy Fund Round 14
Grant Application – Standard Form
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)
☐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)
CalWave will oversee the feasibility study/conceptual design, final design, and construction phases
of the project. Once complete, microgrid-scale devices will be owned and operated by parties
external to CalWave. As these grant funds only pertain to the feasibility study/conceptual
design phase, CalWave will own and operate the project throughout the deployment of all
requested grant funds.
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Grant Application – Standard Form
SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Yakutat Wave Feasibility and Design 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 59.48791 Longitude -139.73990
Cannon Beach, Yakutat, AK
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Yakutat, AK
2.3 Project Type
Please check as appropriate.
2.3.1 Renewable Resource Type
☐Wind ☐Biomass or Biofuels (excluding heat-only)
☐Hydro, Including Run of River ☐Hydrokinetic
☐Geothermal, Excluding Heat Pumps ☐Transmission of Renewable Energy
☐Solar Photovoltaic ☐Storage of Renewable
☐Other (Describe)☐Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐Reconnaissance ☐Final Design and Permitting
☐Feasibility and Conceptual Design ☐Construction
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Grant Application – Standard Form
2.4 Project Description
Provide a brief, one-paragraph description of the proposed project.
The proposed project would consist of feasibility studies and conceptual design by CalWave Power
Technologies (CalWave), with the potential for additional input from the Alaska Village Electric
Cooperative (AVEC) and the Alaska Center for Energy and Power (ACEP). CalWave has been
involved with Launch Alaska’s Tech Deployment Track since September 2021, and is excited about
the possibility of operating a project in Southeast Alaska. While Yakutat is a member of AVEC,
CalWave will design and oversee the construction and installation of our proprietary wave energy
converter (WEC) technology for the benefit of the Yakutat community. Considering its open
shoreline and its proximity to the grid interconnection, Cannon Beach appears to be the best
location for a WEC deployment. While feasibility studies in the past have focused on the area’s
waves themselves, we will additionally conduct feasibility studies that assess the composition of
the ocean floor sediment, any debris that may hinder WEC performance, and effects on marine
species and ecosystems. The overall goal of this project is to lay the foundation for the pilot
deployment of a single small WEC (1 kW) capable of powering local blue economy applications,
and much more significantly, the pilot deployment of a larger WEC (100 kW) capable of satisfying a
large portion of Yakutat’s power demand (ranging from 5 - 15%, depending on time of day and time
of year). Beyond the pilot deployment of a single 100 kW device, there may be the option to install
an additional 4 WECs in order to continue the phase-out of the continuous use of diesel generators
in Yakutat.
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.
Under this funding request, CalWave, with the help of ACEP, will conduct feasibility studies
assessing the area’s wave resource (potentially including, but not limited to, wave height, period,
and directionality), ocean floor sediment composition, debris that may hinder WEC performance,
and effects on marine species and ecosystems. Additionally, under this funding request CalWave
will engage with the Yakutat community in order to gain input from local residents, and CalWave
will complete conceptual designs of the device and other related systems, like mooring and
anchoring, the subsea cable to shore, and the interconnection with the grid, along with operational,
economic, and financial aspects of the project.
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 N/A N/A N/A N/A
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Grant Application – Standard Form
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
Begin Phase II 7/1/22
Recommended
Milestone 1 Complete:
Project scoping and
contractor solicitation 7/1/22
Recommended
Milestone 3 Complete:
Identification of land
and regulatory issues 7/1/22
Obtain data collection
devices 7/1/22 7/31/22
1 Ship devices from
Fairbanks/Anchorage to
Yakutat (we will identify
and reserve the necessary
devices before 7/1/22; most
likely this will involve
wave data collection buoys
from ACEP/UAF)7/1/22 7/15/22
Devices in Yakutat and ready to
deploy by mid-July
2 CalWave team members
visit Yakutat site 7/16/22 7/23/22
3 Deploy data collection
devices at site, most likely
Cannon Beach
7/16/22 7/23/22
Data that will aid in feasibility
studies of several relevant factors,
namely: wave characteristics (wave
height, period, directionality, etc),
ocean floor sediment composition,
floating debris that may hinder the
WEC, and marine species and
ecosystems that may be affected by
the device(s)
4 CalWave team members
engage with local residents
7/16/22 7/23/22
Knowledge of what it’s like to live
in Yakutat, or a remote Alaskan
community in general
5 Extra week at the end of
July to account for any
complications 7/24/22 7/31/22
Collect data on wave
characteristics, ocean
floor sediment
composition, floating
debris, and marine
species and ecosystems 8/1/22 7/31/23
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Grant Application – Standard Form
to inform feasibility
studies
First quarter of data
collection 8/1/22 10/31/22
6 Meet midway through the
first quarter to discuss
updates 9/15/22 9/15/22
Mid-quarter update notes to inform
conceptual design drafts for the
next 6-7 weeks
7 Finish conceptual design
first drafts
10/31/22 10/31/22
First drafts of the conceptual design
for technical (WEC,
mooring/anchoring, subsea cabling,
and interconnection) operational
(logistics, permitting
process/environmental analysis,
deployment process), economic
(assessment of deployment,
alternatives, and cost of energy),
and financial (modeling and
projections) aspects of the project
Second quarter of data
collection 11/1/22 1/31/23
8 Meet midway through the
second quarter to discuss
updates 12/15/22 12/15/22
Mid-quarter update notes to inform
conceptual design drafts for the
next 6-7 weeks
9 Finish conceptual design
final drafts for some
aspects of the project
1/31/23 1/31/23
Final drafts of the conceptual
design for:
- WEC
- Logistics
10 Finish conceptual design
second drafts for some
aspects of the project
1/31/23 1/31/23
Second drafts of the conceptual
design for:
- Mooring/anchoring
- Subsea cabling
- Interconnection
- Permitting process/environmental
analysis
- Deployment process
- Economic assessment of
deployment, alternatives, and cost
of energy
- Financial model
Third quarter of data
collection 2/1/23 4/30/23
11 Meet midway through the
third quarter to discuss
updates 3/15/23 3/15/23
Mid-quarter update notes to inform
conceptual design drafts for the
next 6-7 weeks
12 Finish conceptual design
final drafts for some
aspects of the project
4/30/23 4/30/23
Final drafts of the conceptual
design for:
- Mooring/anchoring
- Permitting process/environmental
analysis
- Deployment process
13 Finish conceptual design
third drafts for some
aspects of the project
4/30/23 4/30/23
Third drafts of the conceptual
design for:
- Subsea cabling
- Interconnection
- Economic assessment of
deployment, alternatives, and cost
of energy
- Financial model
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Renewable Energy Fund Round 14
Grant Application – Standard Form
Recommended
Milestone 4 Complete:
Permitting and
environmental analysis 4/30/23
Completed environmental analysis
with a detailed plan for the
permitting process (completed in
Task 12)
Fourth quarter of data
collection 5/1/23 7/31/23
14 Meet midway through the
fourth quarter to discuss
updates 6/15/23 6/15/23
Mid-quarter update notes to inform
conceptual design drafts for the
next 6-7 weeks
15 Finish conceptual design
final drafts for the
remaining aspects of the
project
7/31/23 7/31/23
Final drafts of the conceptual
design for:
- Subsea cabling
- Interconnection
- Economic assessment of
deployment, alternatives, and cost
of energy
- Financial model
Recommended
Milestone 7 Complete:
Conceptual design and
costs estimate
7/31/23
Conceptual designs for technical
(WEC, mooring/anchoring, subsea
cabling, and interconnection),
operational (logistics, permitting
process/environmental analysis,
deployment process), economic
(assessment of deployment,
alternatives, and cost of energy),
and financial (modeling and
projections) aspects of the project
Recommended
Milestone 2 Complete:
Detailed resource
assessment 7/31/23
Detailed assessment with one full
year ’s worth of data on wave
height, period, and directionality
Recommended
Milestone 5 Complete:
Detailed analysis of
current cost of energy
and future market 7/31/23
Detailed economic assessment of
cost of energy, taking into account
the future market (included with
completed Recommended
Milestone 7)
Recommended
Milestone 6 Complete:
Assessment of
alternatives
7/31/23
Detailed economic assessment of
alternatives to the proposed
deployment (included with
completed Recommended
Milestone 7)
Recommended
Milestone 8 Complete:
Detailed economic and
financial analyses
7/31/23
Detailed economic assessment of
deployment with financial
modeling and projections (included
with completed Recommended
Milestone 7)
Recommended
Milestone 9 Complete:
Conceptual business
and operations plan 7/31/23
Detailed assessment of logistics and
deployment processes (included
with completed Recommended
Milestone 7)
Recover data collection
devices 8/1/23 8/31/23
16 CalWave team members
visit Yakutat site 8/1/23 8/8/23
17 Recover data collection
devices 8/1/23 8/8/23
18 CalWave team members
engage with local residents
8/1/23 8/8/23
Knowledge of what it’s like to live
in Yakutat, or a remote Alaskan
community in general
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Grant Application – Standard Form
19 Ship data collection
devices back to
Fairbanks/Anchorage 8/9/23 8/23/23
20 Extra week at the end of
August to account for any
complications 8/24/23 8/31/23
Recommended
Milestone 10 Complete:
Final report and
recommendations
8/31/23
Final report with go/no go
recommendation, including detailed
analysis of technical, economic,
financial, and operational aspects of
the project
End Phase II 8/31/23
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Renewable Energy Fund Round 14
Grant Application – Standard Form
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 $207,500
Cash match to be provideda $199,100
In-kind match to be provideda $0
Energy efficiency match providedb $0
Total costs for project phase(s) covered in application (sum of
above)
$406,600
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.
CalWave’s financial commitment to the project is forecasted to be $103,300. The match will come
from either the Department of Energy’s Inclusive Energy Innovation Prize or from CalWave cash
reserves. The Inclusive Energy Innovation Prize is expected to be awarded in March or April 2022.
CalWave is also having project financing discussions with the private equity team at McKinley
Capital Management. These funds will cover overhead expenses for the system’s conceptual
design technically, operationally, economically, and financially.
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.
If the AEA funding falls short of covering the travel, equipment, and contractual services costs
outlined below, then we will cover additional costs with matching funds from CalWave’s internal
cash reserves or from the Department of Energy’s Inclusive Energy Innovation Prize. CalWave is
also having project financing discussions with the private equity team at McKinley Capital
Management.
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 Estimated $0
Feasibility and Conceptual Design Estimated $406,600
Final Design and Permitting Estimated $387,400
Construction Estimated $2,450,000
Total Project Costs (sum of above)Estimated $3,244,000
Metering/Tracking Equipment [not included in project
cost]
Estimated $3,000
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.
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Grant Application – Standard Form
●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)
Subsequent phases of the project will be funded by one or a combination of the following sources:
●CalWave’s internal cash reserves
●McKinley Capital Management (currently in talks about potential project financing)
●CalWave’s other revenue streams once its devices are commercialized in 2022
While the Department of Energy Inclusive Energy Innovation Prize may be used for feasibility
studies and conceptual design, the timeline for its deployment would likely be too early for the
permitting or construction phases of the project.
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Grant Application – Standard Form
3.2.5 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 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/Othe
r State
Grants/Othe
r
TOTALS
Task 1:Ship devices from
Fairbanks/Anchorage to Yakutat 7/15/22 $50,000 $0 $50,000
Task 2:CalWave team members
visit Yakutat site 7/23/22 $3,750 $3,750 $7,500
Task 3:Deploy data collection
devices at site, most likely
Cannon Beach
7/23/22 $50,000 $0 $50,000
Task 4:CalWave team members
engage with local residents 7/23/22 $0 $0 $0
Task 5:Extra week at the end of
July 2022 to account for any
complications
7/31/22 $0 $0 $0
Task 6:Meet midway through
the first quarter to discuss updates 9/15/22 $0 $2,400 $2,400
Task 7:Finish conceptual design
first drafts 10/31/22 $0 $59,000 $59,000
Task 8:Meet midway through
the second quarter to discuss
updates
12/15/22 $0 $2,400 $2,400
Task 9:Finish conceptual design
final drafts for some aspects of
the project (WEC; Logistics)
1/31/23 $0 $19,000 $19,000
Task 10:Finish conceptual
design second drafts for some
aspects of the project
(Mooring/anchoring; Subsea
cabling; Interconnection;
Permitting process/environmental
analysis; Deployment process;
Economic assessment of
deployment, alternatives, and cost
of energy; Financial model)
1/31/23 $0 $40,000 $40,000
Task 11:Meet midway through
the third quarter to discuss
updates
3/15/23 $0 $2,400 $2,400
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Grant Application – Standard Form
Task 12:Finish conceptual
design final drafts for some
aspects of the project
(Mooring/anchoring; Permitting
process/environmental analysis;
Deployment process)
4/30/23 $0 $16,000 $16,000
Task 13:Finish conceptual
design third drafts for some
aspects of the project (Subsea
cabling; Interconnection;
Economic assessment of
deployment, alternatives, and cost
of energy; Financial model)
4/30/23 $0 $24,000 $24,000
Task 14:Meet midway through
the fourth quarter to discuss
updates
6/15/23 $0 $2,400 $2,400
Task 15:Finish conceptual
design final drafts for the
remaining aspects of the project
(Subsea cabling; Interconnection;
Economic assessment of
deployment, alternatives, and cost
of energy; Financial model)
7/31/23 $0 $24,000 $24,000
Task 16:CalWave team members
visit Yakutat site 8/8/23 $3,750 $3,750 $7,500
Task 17:Recover data collection
devices 8/8/23 $50,000 $0 $50,000
Task 18:CalWave team members
engage with local residents 8/8/23 $0 $0 $0
Task 19:Ship data collection
devices back to
Fairbanks/Anchorage
8/23/23 $50,000 $0 $50,000
Task 20:Extra week at the end of
August 2023 to account for any
complications
8/31/23 $0 $0 $0
TOTALS $207,500 $199,100 $406,600
Budget Categories:
Direct Labor & Benefits $20,000 $191,600 $211,600
Travel & Per Diem $7,500 $7,500 $15,000
Equipment $80,000 $$80,000
Materials & Supplies $$$
Contractual Services $100,000 $$100,000
Construction Services $$$
Other $$$
TOTALS $207,500 $199,100 $406,600
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Grant Application – Standard Form
3.2.6 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 cost estimates for shipping and deploying the data collection devices come from CalWave’s
past experience in conducting offshore deployments, and are conservatively estimated in order to
account for any difficulties due to the site’s remote nature. The travel costs assume that a
round-trip week-long site visit to Yakutat would cost $7,500 for three people. The overhead costs
multiply an average of $100 per man-hour by the number of man-hours those tasks are estimated
to require; these costs are fully covered by matching funds.
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?
CalWave has scheduled four quarterly deadlines (10/31/22, 1/31/23, 4/30/23, 7/31/23) throughout
the course of the project in order to iterate on the conceptual design drafts using the ongoing
feasibility studies; CalWave will use these quarterly updates to communicate with AEA on the
project’s progress, and the CalWave team will hold responsibility for tracking this progress.
CalWave, as it does with other projects, will use the “Objectives and Key Results” framework
(OKRs) to track progress. In addition, CalWave will hold a mid-quarter internal meeting for each
deadline (9/15/22, 12/15/22, 3/15/23, 6/15/23) to ensure appropriate progress is being made.
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.
As CalWave completes this project, past offshore deployment experience (significantly at the
Scripps Institution of Oceanography in San Diego) will ensure that only reasonable costs are
allocated to this project. If need be, expert Alaska-based outside counsel on the nature of project
costs may be considered. CalWave has contracts with the US Department of Energy and
relationships with private investors to ensure that no expenses for overhead or any other
unallowable costs will be requested for reimbursement from the REF Grant Program.
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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.
Since CalWave has experience managing offshore deployments, project management will be
handled internally; the resumes of Marcus Lehmann, CEO, and Dan Petcovic, COO, are included
as attachments.
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.
Since CalWave has experience managing offshore deployments, project accounting will be
handled internally; as mentioned above, the resumes of Marcus Lehmann, CEO, and Dan
Petcovic, COO, are included as attachments.
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.
Tasks 1-5, which deal with the shipping and deployment of data collection buoys in order to begin
the feasibility studies, will be managed by Dan Petcovic, COO. Tasks 6-15, which deal with drafting
and completing conceptual designs for the system technically, operationally, economically, and
financially, and which will be covered by matching funds for overhead costs, will be managed by
Marcus Lehmann, CEO. Tasks 16-20, which deal with the recovery and shipping of data collection
buoys at the end of the feasibility study phase, will be managed by Dan Petcovic. As mentioned
above, the resumes of Dan and Marcus are attached, and highlight their extensive experience in
the wave energy space. Other relevant communications with Alaska entities, such as AVEC, ACEP,
Launch Alaska, and others, will be managed by Ryan Davidson, business development associate.
4.2 Local Workforce
Describe how the project will use local labor or train a local labor workforce.
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For the feasibility study and conceptual design phase of the project, local labor will be needed in
order to deploy the data collection devices that will run from August 2022 to July 2023. It may not
be feasible for the CalWave team to visit Yakutat several times throughout the course of the year,
so of the $100,000 allocated to deploying and recovering the data collection devices (Tasks 3 and
17), $20,000 will be used for local labor.
Beyond the feasibility study and conceptual design phase of the project (so out of the scope of this
grant), CalWave will use a wider local labor workforce to actually manufacture, ship, and construct
the WECs; aside from a few smaller components that will be shipped from California to Southeast
Alaska, most components of each device may be constructed closer to the deployment site. This
labor workforce does not necessarily have to be in Yakutat, and will likely be from a larger
population center with more manufacturing facilities. Possible options include but are not limited to
Juneau, Sitka, and Ketchikan.
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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.
In 2009, the Electric Power Research Institute (EPRI) did a feasibility study on the wave resource
in Southeast Alaska specifically tailored toward the Yakutat area (this study is included as an
attachment). Their NOAA measurement buoy (NDBC 46083) was located 92 nautical miles
southeast of Yakutat, and they used the data collected from 2001 to 2006 to approximate the wave
conditions of the Yakutat area. On an annual basis, the area’s waves produce 34 kW per meter of
shoreline; month by month, the measurements were as follows:
January: 46 kW/m; February: 60 kW/m; March: 41 kW/m; April: 28 kW/m; May: 15 kW/m; June: 9
kW/m; July: 7 kW/m; August: 11 kW/m; September: 25 kW/m; October: 40 kW/m; November: 57
kW/m; December: 73 kW/m
Given that peak demand is in the winter, the higher power output during those months is optimal for
Yakutat.
The proposed site for deployment is Cannon Beach; taking the opening of Yakutat Bay as the
northwest end and the mouth of the Lower Situk River as the southeast end of Cannon Beach, we
can assume that Cannon Beach is 11.00 miles long. Aggregating the waves’ power output over the
course of a year, each meter of coastline produces 299,352 kWh (or 299.352 MWh) annually.
Since 11.00 miles is equal to 17,702.8 meters, then it’s expected that Cannon Beach as a whole
would produce 5,299,369 MWh of power annually. Given the annual average power usage of 11
MWh per American household, we can assume that theoretically, the waves of Cannon Beach
could power 480,000 average American households.
The technical potential, however, would be lower than the theoretical potential. Conservatively
assuming a 40% capacity factor and 95% WEC usage, the theoretical potential of Cannon Beach is
2,013,760 MWh. Based on 2020 Power-Cost Equalization data, which says that Yakutat generated
5,974,703 kWh from diesel in FY2020, then technically, Cannon Beach could power Yakutat 337
times over.
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 wave resource in the waters off Southern Alaska, and particularly Yakutat in Southeast Alaska,
is one of the best in the world; as mentioned above, the annual average output per meter of
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coastline is 34 kW. While there is definitely a fluctuation in this resource between the winter and the
summer months, the summer output is not insignificant; if anything, it even helps that the higher
power output over the winter matches the higher residential energy demand, and the lower power
output over the summer matches the lower residential energy demand. In addition to this
consistency, wave energy is much more predictable than other renewables, and can be predicted
accurately weeks ahead of time. One con of the local wave resource is that the technology used to
harness it is still new, and often requires outside funding.
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
CalWave and EXP have expressed interest in working together regarding permitting projects in
Alaska; optimally, the permitting process will be complete by August 2023 so that a WEC
deployment can occur before the end of summer 2023.
5.2 Project Site
Describe the availability of the site and its suitability for the proposed energy system. Identify
potential land ownership issues, including whether site owners have agreed to the project or how
you intend to approach land ownership and access issues. See the “Site control” section of the
appropriate Best Practice Checklist for additional guidance.
The proposed site offshore from Cannon Beach is available and suitable for the proposed wave
energy generation system. There should be no ownership issues, and since the site is fewer than
three nautical miles from the shore, then it is in Alaska state waters, as opposed to solely federal
waters.
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.
From conversations with ACEP on the Yakutat area’s offshore physical landscape, CalWave
believes that mooring and anchoring effectively could pose a technical risk. Because of this, a key
focus of the 14-month feasibility study and conceptual design period is collecting and analyzing
data on the ocean floor sediment composition. CalWave has added additional controls (that will be
shared with AEA) to mitigate this risk by scheduling anchoring and mooring conceptual design draft
deadlines for 10/31/22, 1/31/23, and 4/30/23.
5.3.2 Environmental Risk
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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
Of the environmental issues listed, four may apply:
1. Visual and aesthetics impacts:A key differentiator for CalWave is that our technology
operates below the ocean’s surface, so unless viewed from directly above, the devices are invisible
from the surface.
2. Aviation considerations:Because the devices are difficult and often impossible to see from
above the surface of the water, then there must be clear markers in the case that ocean-going
vessels travel through the area (in the case of aviation considerations, seaplanes).
3. Threatened or endangered species:The feasibility studies will further reveal how threatened
and/or endangered species may be affected by CalWave’s device(s),but as of right now, major
endangered marine species in the waters off Southeast Alaska may include:
a. Blue whale
b. Humpback whale
c. Leatherback sea turtle
d. North Pacific right whale
e. Sei whale
f. Short-tailed albatross
One major threatened species in the waters off Southeast Alaska is the green sea turtle.
4. Habitat issues:In addition to the third point,the feasibility studies will optimally reveal a
deployment’s impact on the local marine ecosystem itself, comprised of species of all
classifications, in addition to local endangered and threatened species.
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 the system. See the “Understanding the
Existing System” section of the appropriate Best Practice Checklist for additional guidance.
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Yakutat generator data from AEA is included, and additional details about the operation of the
existing energy system will require further investigation.
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).
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: DFO; 800 kW; 0 kW minimum operational load; operating since 1999; 6637 plant code
Unit 2: DFO; 600 kW; 0 kW minimum operational load; operating since 1999; 6637 plant code
Unit 3: DFO; 1,200 kW; 0 kW minimum operational load; operating since 2007; 6637 plant code
Unit 4: DFO; 1,200 kW; 0 kW minimum operational load; operating since 2012; 6637 plant code
Unit 5:
Unit 6:
Is there operational heat recovery? (Y/N) If yes estimated
annual displaced heating fuel (gallons)
N
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.
Yakutat generator data from AEA is included, and additional details about the operation of the
existing energy system will require further investigation.
5.4.2.3 Existing Thermal Generation Units (if applicable to your project)
Generation
unit
Resource/
Fuel type
Design
capacity
(MMBtu/hr)
Make Model Average
annual
efficiency
Year
Installed
Hours
N/A N/A N/A N/A N/A N/A N/A N/A
5.4.2.4 O&M and replacement costs for
existing units
Power Generation Thermal Generation
i.Annual O&M cost for labor Unavailable N/A
ii.Annual O&M cost for non-labor Unavailable N/A
iii. Replacement schedule and cost for
existing units
Unavailable N/A
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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 (DFO)
(kWh)
Generatio
n (Type 2)
(kWh)
Generatio
n (Type 3)
(kWh)
Fuel
Consumptio
n
(Diesel-Gall
ons)
Fuel
Consum
ption
[Other]
Peak
Load
Minimum
Load (0
kW min.
oper.
load)
January 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
February 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
March 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
April 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
May 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
June 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
July 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
August 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
September 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
October 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
November 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
December 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
Total 500,000 N/A N/A 35,000 N/A 1.5 MW 750 kW
base load
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 N/A N/A N/A N/A N/A N/A
February
March
April
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May
June
July
August
September
October
November
December
Total
5.4.3 Future Trends
Describe the anticipated energy demand in the community, or whatever will be affected by the
project, over the life of the project. Explain how the forecast was developed and provide year by
year forecasts. As appropriate, include expected changes to energy demand, peak load, seasonal
variations, etc. that will affect the project.
From 2000 to 2019,the population of Yakutat dropped from 680 to 540,peaking at 742 in 2009.If
these trends continue,it seems residential demand will not increase;however,new DFO
generators were brought online in 2007 and 2012,each rated at 1.2 MW.Blue economy
applications,such as fishing,monitoring,or other forms of research will contribute slightly to the
peak load in the summer,but much higher energy demand in the winter will contribute to a higher
peak load over the winter.Overall,we see this project as having the potential to gradually phase
out Yakutat’s DFO generators.
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.
In the long run,the goal of this feasibility study is to deploy between 1 and 5 WECs at Cannon
Beach,each rated at 100 kW.Additional design details will become more clear as our feasibility
studies progress.
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
1-5 Wave 100 kW
each
xWave x100 40%20 95%
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5.4.4.2 Proposed Thermal Generation Units (if applicable)
Generation
unit
Resource/
Fuel type
Design
capacity
(MMBtu/hr)
Make Model Expected
Average
annual
efficiency
Expected
life
N/A N/A N/A N/A N/A N/A 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.
The proposed energy system will operate nearly all the time,and will only have to shut down in
extremely harsh conditions.Beyond this,feasibility studies will need to occur in order to better
understand how the system will operate and integrate with the existing system.
5.4.3.1 Expected Capacity Factor 40%
5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System)
Month Generation
(Proposed
System)
(kWh)(per
device;
there may
be
between
1-5
devices)
Generation
(Type 2)
(kWh)
Generation
(Type 3)
(kWh)
Fuel
Consumption
(Diesel-Gallo
ns)
Fuel
Consumption
[Other]
Secondary
load
(kWh)
Storage
(kWh)
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January ~33,000
kWh
N/A 0 0 0 N/A
February ~43,000
kWh
N/A 0 0 0 N/A
March ~29,500
kWh
N/A 0 0 0 N/A
April ~20,000
kWh
N/A 0 0 0 N/A
May ~11,000
kWh
N/A 0 0 0 N/A
June ~6,500
kWh
N/A 0 0 0 N/A
July ~5,000
kWh
N/A 0 0 0 N/A
August ~8,000
kWh
N/A 0 0 0 N/A
September ~18,000
kWh
N/A 0 0 0 N/A
October ~29,000
kWh
N/A 0 0 0 N/A
November ~41,000
kWh
N/A 0 0 0 N/A
December ~52,500
kWh
N/A 0 0 0 N/A
Total ~296,500
kWh
N/A 0 0 0 N/A
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 N/A N/A N/A N/A N/A N/A
February
March
April
May
June
July
August
September
October
November
December
Total
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5.4.6 Proposed System Operating and Maintenance (O&M) Costs
O&M costs can be estimated in two ways for the standard application. Most proposed renewable
energy projects will fall under Option 1 because the new resource will not allow for diesel
generation to be turned off. Some projects may allow for diesel generation to be turned off for
periods of time; these projects should choose Option 2 for estimating O&M.
Option 1:Diesel generation ON
For projects that do not result in shutting down
diesel generation there is assumed to be no
impact on the base case O&M. Please indicate
the estimated annual O&M cost associated with
the proposed renewable project.
The annual O&M is estimated at $75,000 per
100 kW device, but increasing the number of
devices would likely decrease the O&M costs.
In addition, integrating this project would likely
lead to long-term decreases in O&M costs for
the current DFO generators; while the intent is
not to immediately shut down diesel generation,
that is part of the end goal.
Option 2: Diesel generation OFF
For projects that will result in shutting down
diesel generation please estimate:
1.Annual non-fuel savings of shutting off
diesel generation
2.Estimated hours that diesel generation
will be off per year.
3.Annual O&M costs associated with the
proposed renewable project.
1. $
2. Hours diesel OFF/year:
3. $
5.4.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of
operation)
Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood Other
Unit cost ($)N/A N/A N/A N/A N/A N/A
Annual
Units
Total Annual
cost ($)
5.5 Performance and O&M Reporting
For construction projects only
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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.
N/A
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
N/A
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)
20,750 (with 1 device)415,000 (with 1 device)
Anticipated Fuel Displaced for Heat
(gallons)
N/A N/A
Total Fuel displaced (gallons)20,750 (with 1 device)415,000 (with 1 device)
Anticipated Diesel Fuel Displaced for
Power Generation ($)
$56,650 (with 1
device)
$1,133,000 (with 1 device)
Anticipated Fuel Displaced for Heat ($)N/A N/A
Anticipated Power Generation O&M Cost
Savings
$56,875 (with 1
device)
$1,137,500 (with 1 device)
Anticipated Thermal Generation O&M Cost
Savings
N/A N/A
Total Other costs savings (taxes, insurance,
etc.)
N/A N/A
Total Fuel, O&M, and Other Cost Savings $113,525 (with 1
device)
$2,270,500 (with 1 device)
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
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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.
From this project,Yakutat will experience cost savings with regard to both fuel and generator O&M
(will decrease reliance on DFO generation over time).CalWave’s O&M costs are estimated to be
$75,000 per device;since no fuel is required,this O&M cost combined with the $113,525 in annual
savings leads to an estimated net savings of $38,525 on O&M and fuel related costs for Yakutat.
With more devices,these savings would increase disproportionately in favor of CalWave’s devices
(because the average O&M per device would decrease below $75,000 with more devices).
In addition,CalWave hopes that access to offshore power will contribute to a strong local blue
economy.Not least of all,this project will also create job potential in Southeast Alaska in areas like
manufacturing, welding, and shipping.
More specific long-term forecasts will be more accurate once the feasibility study is underway.
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
The biggest economic risk is the potential for price fluctuations for diesel fuel;while it doesn’t seem
likely that prices will drop significantly in the near future,this is a factor that needs to be taken into
account,and this will be a cornerstone in the economic aspect of the conceptual design.O&M
costs for both the DFO generators and CalWave’s devices are likely to remain fairly constant.
Other renewable energy projects in the community may pose an economic risk,but there does not
seem to be lots of traction in that regard,and Yakutat’s most abundant renewable energy resource
comes in the form of waves.
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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.
N/A
Renewable energy resource availability (kWh per month)N/A
Estimated direct sales to private sector businesses (kWh)N/A
Revenue for displacing diesel generation for use at private sector businesses ($)N/A
Estimated sales for use by the Alaskan public (kWh)N/A
Revenue for displacing diesel generation for use by the Alaskan public ($)N/A
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 has multiple major non-economic benefits, with the high potential to:
- Create jobs in Southeast Alaska generally and in Yakutat specifically, in areas like manufacturing,
welding, and shipping, among others
- Strengthen the local blue economy, with regard to both fishing and research applications
- Eventually eliminate the visual pollution inherent in diesel generators
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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
CalWave will own the operation and maintenance of the project throughout the feasibility study,
conceptual design, and early deployment phases; with commercialization, CalWave would like to
explore the option to hand off the operation and maintenance to the relevant local organizations.
Further investigation through the feasibility studies and conceptual design is needed.
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.
Since CalWave primarily designs and constructs its devices, and since CalWave is applying for the
feasibility study and conceptual design phase, the financial sustainability with regard to owning and
operating the devices requires further investigation with the financial aspect of the conceptual
design.
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)
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●Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
It is expected that electrical rates in Yakutat will decrease as a result of the project, potentially
significantly. Beyond that, the economic and financial aspects of the constructed project, once
operational, require further investigation from the feasibility study and conceptual design phase.
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.
Detailed information on power purchase/sale requires further investigation, but it’s feasible that the
total cost per kWh sold may be in the range of $0.20 - $0.30 (pre-PCE), as opposed to the current
$0.42.
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 reconnaissance phase of the project has been completed through the feasibility study on the
area performed by the Electric Power Research Institute in 2009, so this application is for the
feasibility study and conceptual design phase, scheduled to begin in July 2022 if this grant is
approved. CalWave plans on discussing permits with EXP when the grant is approved, so that
these permits can be obtained in time to deploy the WEC(s) on schedule. Land access and use for
construction will also be further investigated through the feasibility study phase. CalWave plans to
obtain necessary equipment for feasibility studies, like data collection buoy(s), through ACEP.
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,
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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 November 16, 2021. Please note that
letters of support from legislators will not count toward this criterion.
There is anticipated to be lots of local support for this project. From CalWave’s conversations with
Launch Alaska and ACEP, the Yakutat community appears to support the integration of renewable
energy projects into their local grid in order to reduce costs, and it seems they are even interested
in learning more about cutting edge technologies in the marine energy space. Conversations with
Yakutat residents, both remotely and face-to-face, will be helpful in learning more.
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.
The EPRI report on Southeast Alaska’s wave energy resource, used as a reconnaissance study, is
attached to this application.
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below, please provide a list of additional information submitted for consideration.
The resumes of Marcus Lehmann, CalWave CEO, and Dan Petcovic, CalWave COO, are attached
as noted in Section 4.
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SECTION 13 – AUTHORIZED SIGNERS FORM
Community/Grantee Name: CalWave Power Technologies
Regular Election is held: N/A Date: 01/18/2022
Authorized Grant Signer(s):
Printed Name Title Term Signature
Marcus Lehmann CEO
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
Marcus Lehmann CEO
Grantee Contact Information:
Mailing Address:1 Sapphire Ct, Hercules, CA 94547
Phone Number:(510) 508-9897
Fax Number:N/A
Email Address:marcus@calwave.energy
Federal Tax ID #:82-0972139
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 Marcus Lehmann
Signature
Title CEO
Date 01/18/2022
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