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HomeMy WebLinkAboutJenny Creek Recon REF app Jan 2022Renewable Energy Fund Round 14 Grant Application -Standard Form Application Forms and Instructions ALASKA ENERGY AUTHORITY 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.akenerqyauthority.org/What-We-Do/Grants-Loans/Renewable-Enerqy-Fund/2021- REF-App lication . 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 Jist 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@akenergyauthoritv.org or by phone at (907) 771-3081 . AEA23001 Page 1 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form REMINDER: ALASKA ENERGY AUTHORITY • 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. AEA23001 Page 2 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form SECTION 1 -APPLICANT INFORMATION ALASKA ENERGY AUTHORITY Please specify the legal grantee that will own, operate, and maintain the project upon completion. I Name (Name of utility, IPP, local government, or other government entity) I Inside Passage Electric Cooperative Tax ID # 43-1964262 Date of last financial statement audit: March 2021 for year ending 12/31/2020 Mailing Address: Phy sical Address: P .O. Box 210149 12480 Mendenhall Loo p Road Auke Ba y , AK 99821-0149 Juneau, AK 99801 Telep hone: Fax: Email: (907 ) 789-3196 (907 ) 790-8517 JMitchell @ lnsidePassageEiectric.org I 1.1 Applicant Point of Contact I Grants Coordinator Name: Title: Jodi Mitchell, chief executive officer/general manager Mailing Address: P.O. Box 210149 Auke Bay, AK 99821-0149 Telep hone: Fax: Email: (907 ) 723-0364 (907 ) 790-8517 JMitchell @ lnsidePassageEiectric.org 1.1.1 Applicant Signatory Authority Contact Information Name: Jodi Mitchell Title: Chief Executive Officer/Gen Mgr Mailing Address: P.O. Box 210149, Auke Bay, AK 99821-0149 Telephone: Fax: Email: (907 ) 723-0364 (907 ) 790-8517 JMitchell @ lnsidePassageEiectric.org 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: Brandon Shaw (907) 723-8441 (907) 790-BShaw@lnsidePassageEiectric.org 8517 Roxanne Drake-(907) 364-3022 (907) 790-RDrake@lnsidePassageEiectric.org Burkhart 8517 ABA 23 001 Page 3 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY 1.2 Applicant Minimum Requirements Please check as appropriate. If applicants do not meet the minimum requirements, the application will be rejected. j 1.2.1 Applicant Type ~ An electric utility holding a certificate of public convenience and necessity under AS 42.05 CPCN #_240 __ , or D An independent power producer in accordance with 3 AAC 107.695 (a) (1) CPCN # , or D A local government, or D A governmental entity (which includes tribal councils and housing authorities) Add'. 1t1ona m1mmum 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 htt Q s://www.akenerg't authori ~.org /What-We-Do/Grants-Loans/Renewable-Energ~- Fund/2021-REF-A pp lication (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) AEA23001 Page 4 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form I SECTION 2-PROJECT SUMMARY 2.1 Project Title Provide a 4 to 7 word title for your project. Type in the space below. Jenny Creek Hydro Reconnaissance-Kake IPEC I 2.2 Project Location ALASKA ENERGY AUTHORITY 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 l l Longitude I See attached photo from Google Earth -Jenny Creek near Kake, Alaska 56.57'1.42"N, 133.52'22.35"W 2.2.2 Community benefiting -Name{s) of the community or communities that will be the beneficiaries of the project. Kake, Alaska, as well as the other communities served by IPEC through its postage-stamp rate structure. 2.3 Project Type Please check as appropriate. I 2.3.1 Renewable Resource Type D Wind D Biomass or Biofuels (excluding heat-only) ~ Hydro, Including Run of River D Hydrokinetic D Geothermal, Excluding Heat Pumps D Transmission of Renewable Energy D Solar Photovoltaic D Storage of Renewable I D Other (Describe) D Small Natural Gas I 2.3.2 Proposed Grant Funded Phase{s) for this Request (Check all that apply) Pre-Construction Construction ~ Reconnaissance D Final Design and Permitting D Feasibility and Conceptual Design D Construction AEA23001 Page 5 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form 2.4 Project Description Provide a brief, one-paragraph description of the proposed project. ALASKA ENERGY AUTHORITY Inside Passage Electric Cooperative (IPEC) is the local electric provider for Kake, AK. We recently completed the Gunnuk Creek hydro project in Kake, and we are now looking to add additional renewable energy resources to IPEC's generation mix at Kake. IPEC has spent the past decade working to identify renewable energy projects for the benefit of its member-consumers in order to reduce rates, and to reduce carbon emissions from diesel generation. Jenny Creek, located approximately .75 miles from the Kake boat harbor, has long been identified as a potential site for a new run-of-river hydro project. IPEC desires to perform a reconnaissance level study to help decide if further investigation of Jenny Creek's potential is warranted. IPEC plans to work with HDR Engineering, Inc. (HDR) to accomplish this. 2.5 Scope of Work Provide a short narrative for the scope of work detailing the tasks to be performed under this funding request. This should include work paid for by grant funds and matching funds or performed as in-kind match. The scope of work includes the Jenny Creek site reconnaissance (i.e., data collection and review, and field reconnaissance), and the preparation of a reconnaissance report. The reconnaissance report will include a conceptual project layout, evaluation of the hydrology of the creek, an estimate of the power output, and an estimate of the construction cost. Please see HDR's Jenny Creek Hydroelectric Project Reconnaissance Study proposal included with this application for detail of each of these steps. 2.6 Previous REF Applications for the Project See Section 1.15 of the RFA for the maximum Qer Qroject cumulative grant award amount Round Title of application ·Application Did you Amount of REF Submitted #,if known receive a grant awarded g rant? Y/N ($) N/A AEA23001 Page 6 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form I SECTION 3 -Project Management, Development, and Operation I 3.1 Schedule and Milestones ALASKA ENERGY AUTHORITY 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, Ill. 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 Start End # Milestones Tasks Date Date Deliverables 1 Site Reconnaissance Data Collection & Compilation of available data review of existing including photography, information LIDAR survey info, USGS stream flow data, land ownership, ADNR water rights July Aug data, ADFG fish distribution 2022 2022 data Field Reconnaissance Identification and GPS documentation of possible Initial aerial locations of hydro project reconnaissance via components including helicopter, followed powerhouse, intake and by onsite field penstock route. Review of site verification access for construction, operations & maintenance. Evaluation of fisheries aspects of stream. Review of route for tie-in to existing Kake Aug Sept distribution system. Assess 2022 2022 __e_ossible site for stream gage. 2 Reconnaissance Prepare conceptual Project layout will include Report project layout recommended intake, diversion, penstock, powerhouse, tailrace and transmission line, and access. Discussion will include construction methods, materials, and will identify Sept Dec geologic, engineering and 2022 2022 environmental issues. Hydrology A desk top evaluation will be conducted to evaluate the drainage basin area, and compare the drainage basin to existing USGS stream gage Sept Dec data to develop a mean daily 2022 2022 flow series. There are a AEA23001 Page 7 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form Estimation of power potential Estimate of probable construction cost Reconnaissance Report Sept 2022 Sept 2022 Sept 2022 AEA23001 Page 8 of32 Dec 2022 Dec 2022 Dec 2022 ALASKA ENERGY AUTHORITY number of potential USGS sites which may provide a reasonable correlation to the Jenny Creek watershed. An estimate of potential energy for the Jenny Creek hydro project will be prepared using model inputs of headwater elevation, tailwater evaluation, design flow, turbine type, size and efficiency, and water conveyance size and length. The mean daily flow data prepared with the conceptual project design layout, along with project characteristics, will be used to prepare an estimate of the monthly and averag_e energ,y_generation. A reconnaissance level cost estimate will be prepared. Material prices will be solicited from vendors for major equipment, materials, and delivery costs. Cost estimate will include the cost of permitting, design, and construction. An estimated cost/kWh will be provided using fmancial input __garameters__grovided b y IPEC. IPEC and its contractor will compile the work of the previous tasks into a brief report. The report will recommend a project conceptual design, and will include the conceptual project layout, hydrology, power output estimate, and an estimate of construction cost. 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form I I !3.2 Budget 3.2.1 Funding Sources I I ALASKA ENERGY AUTHORITY Indicate the funding sources for the phase(s) of the project applied for in this funding request. Grant funds requested in this application $62,368 Cash match to be p rovideda $ In-kind match to be provideda (to include IPEC labor, overhead, and travel costs) $10,000 Energy efficiency match p rovidedb $ Total costs for project phase(s) covered in application (sum of $72,368 above) 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. IPEC's operations manager, Brandon Shaw, will assist with the reconnaissance study to the extent possible. The estimated cost of this is $10,000 which includes labor, overhead, travel, and meals & lodging. Mr. Shaw will participate in field activities, and will provide guidance to the contractor, HDR, as necessary. 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. IPEC has financial resources to pay for cost overruns, should they occur. 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 $72,368 Feasibility and Conceptual Design [A ctual/Estimated] To be determined Final Design and Permitting [Actual/Estimated] To be determined Construction [A ctual/Estimated] To be determined Total Project Costs (sum of above) Estimated $72,368 Metering/Tracking Equipment [not included in project Estimated To be determined cost] 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) AEA23001 Page 9 of32 11116/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY • Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) State and/or federal grants -uncertain, but IPEC continues to lobby for grants to support its quest for diesel independence. Loans, bonds or other financing options -IPEC has borrowing capacity, although limited, to cover costs of the reconnaissance study. Additional incentives -IPEC will investigate whether or not there are additional grants or incentives to help with the next steps of the Jenny Creek hydro project into the future. Additional revenue streams -as a non-profit electric cooperative IPEC doesn't have access to additional revenue streams. While IPEC recently initiated a new heat pump rate which may provide a small amount more revenue to support its activities, the additional revenue will go toward lower rates for IPEC's consumers in the short run. 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, Ill. 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@akenergvauthoritv.org or by phone at (907) 771-3081. Phase 1 -Reconnaissance Source of Matching Anticipated Grantee Funds: RE-Fund Cash/In· Milestone or Task Completion Grant Funds Matching kind/Federal TOTALS Date Funds Grants/Other State Grants/Other (List milestones based on phase and type of project. See $ $ $ Sections 2. 3 thru 2. 6 of the RFA J Reconnaissance study (see Dec2022 $62,368 $10,000 In-kind $72,368 details in section 3.1 ) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ AEA23001 Page 10 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form $ TOTALS $62,368 Budget Cate gories: Direct Labor & Benefits $ Travel & Per Diem $ EQui pment $ Materials & Su pp lies $ Contractual Services $62,368 Construction Services $ Other $ TOTALS $62,368 $ $10,000 $7,000 $3,000 $ $ $ $ $ $10,000 Phase 2 -Feasibility and Conceptual Desig n Source of Matching Anticipated Grantee Funds: RE-Fund Cash/In-Milestone or Task Completion Grant Funds Matching kind/Federal Date Funds Grants/Other State Grants/Other (List milestones based on phase and type of project. $ $ See Sections 2.3 thru 2.6 of the RFA ) N/A (reconnaissance stud y) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ Budget Categories: Direct Labor & Benefits $ $ Travel & Per Diem $ $ Equi pment $ $ Materials & Su pp lies $ $ Contractual Services $ $ Construction Services $ $ Other $ $ TOTALS $ $ AEA23001 Page 11 of32 $ ALASKA ENERGY AUTHORITY $72,368 $7,000 $3000 $ $ $62,368 $ $ $72,368 TOTALS $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form Phase 3-Final Desi g n and Permittin ~; Anticipated Grantee RE-Fund Milestone or Task Completion Grant Funds Matching Date Funds (List milestones based on phase and type of project. $ $ See Sections 2.3 thru 2.6 of the RFA ) N/A (reconnaissance study) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ Budget Categ ories: Direct Labor & Benefits $ $ Travel & Per Diem $ $ Equi pment $ $ Materials & Su pp lies $ $ Contractual Services $ $ Construction Services $ $ Other $ $ TOTALS $ $ AEA23001 Page 12 of 32 Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ ALASKA ENERGY AUTHORITY TOTALS 11116/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form Phase 4 -Construction Anticipated Grantee RE-Fund Milestone or Task Completion Grant Funds Matching Date Funds (List milestones based on phase and type of project. $ $ See Sections 2.3 thru 2.6 of the RFA ) N/A (reconnaissance study) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ Budget Cate gories: Direct Labor & Benefits $ $ Travel & Per Diem $ $ Equi pment $ $ Materials & Su pp lies $ $ Contractual Services $ $ Construction Services $ $ Other $ $ TOTALS $ $ 3.2.4 Cost Justification Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ ALASKA ENERGY AUTHORITY TOTALS Indicate the source(s) of the cost estimates used for the project budget, including costs for future phases not included in this application. Please see attached proposal from HDR-Aiaska entitled "Jenny Creek Hydroelectric Project Reconnaissance Study" included with this application. Costs of future phases will be determined if the reconnaissance study indicates further study is warranted. [ 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? I I PEG's team is adept at grant reporting. We will provide updates and the f inal reconnaissance study soon after it is complete. The estimated date of completion is 12/31/2022 but it depends on AEA23001 Page 13 o f 32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY when or if the grant is awarded. If awarded during summer 2022 we estimate the Jenny Creek hyde reconnaissance study will be complete by December 31, 2022. I 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. IPEC's team has vast experience in grant reporting, including with REF grants. We question all invoices, whether grant related or otherwise, to be sure they are legitimate expenses of IPEC. IPEC is audited on an annual basis, and we have never experienced an audit that held IPEC's controls (or any other audit issues) in question . We are a small but experienced team, with decades of experience in grant reporting and compliance including with the REF . I 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. Brandon Shaw, IPEC's operations manager, will be the project manager. His contact information is included herein. Mr. Shaw has years of project management experience in his role as operations manager for IPEC, including managing the Gartina Falls hydro project in Hoonah, and the Gunnuk Creek hydro project recently completed in Kake, AK. AEA project management will not be necessary unless they choose to assist. 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. Roxanne Drake-Burkhart is IPEC's controller. She has at least 16 years of experience in grant reporting and state single audit compliance. Also, IPEC is audited annually by the team of Blodgett, Mickelson, & Adamson, PS, a certified public accounting firm. IPEC has never had an audit that questions our integrity or reporting, or that reports any impropriety, whatsoever, since at least 1993 if not for the entire existence of IPEC. IPEC's team is very proud of this fact. Ms. Drake-Burkhart is a very accomplished professional. She also serves as a director of Shee Atika Corporation, the urban ANCSA corporation for Sitka, AK. She has years of accounting and audit experience (see attached resume). I 4.1.3 Expertise and Resources AEA23001 Page 14 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form 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; ALASKA ENERGY AUTHORITY • 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. HDR-Aiaska will be responsible for completing and delivering the reconnaissance report. They have years of experience in rural Alaska hydro reconnaissance, design, and construction management (see resume of Paul Berkshire, HDR engineer, included with this application). Brandon Shaw, IPEC operations manager, will be the project manager. Brandon helped manage the Gartina Falls hydro project construction in Hoonah, the Gunnuk Creek hydro construction in Hoonah, and has years of experience in diesel-generation and now hydro generation projects. (See resume of Brandon Shaw, IPEC operations manager, included with this application). Roxanne Drake-Burkhart, IPEC's controller, will be responsible for financial reporting for the grant if awarded. Roxanne has a couple of decades of experience in grant reporting, financial reporting, and audit compliance (see Roxanne Drake-Burkhart's resume included with this application). Jodi Mitchell, IPEC's CEO & General Manager, will be overall responsible for the project to be sure we are in compliance with all aspects of the project, as well as financial reporting (see Jodi Mitchell's resume included with this application). 4.2 Local Workforce Describe how the project will use local labor or train a local labor workforce . IPEC will use its own workforce, along with that of HDR-Aiaska, to complete the reconnaissance study and reporting. We will likely use local labor if the project satisfies the "go/no go" decision to possibly build the project. The reconnaissance study will help decide if the project proceeds. In the past, IPEC has intentionally hired local workers to help build hydro projects . AEA23001 Page 15 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form I SECTION 5-TECHNICAL FEASIBILITY I 5.1 Resource Availability 5.1.1 Assessment of Proposed Energy Resource ALASKA ENERGY AUTHORITY 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. IPEC has long been interested in the hydro potential of Jenny Creek near Kake. It has a steady flow of water, and a bridge over Jenny Creek exists along the road out of town toward the dump. IPEC hopes to determine if the water flow from the creek would produce enough energy to make it a viable renewable energy resource for the community of Kake. This energy would supplement the recently completed Gunnuk Creek hydro project, and would help to reduce diesel fuel consumption and carbon emissions, while providing a more long-term affordable energy resource. 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. IPEC has considered wind, solar, and even tidal power for its communities. However, the biggest and most long-term source is hydroelectric power given that our communities exist within a rain forest. Hydroelectric projects last at least 50 years, but can last well over 100 years with good maintenance (e.g., Juneau's Gold Creek project which has been producing electric power for Juneau for more than 125 years). The only con of hydro is the potential for disruption of salmon stream viability. However, the two run-of-river hydro projects IPEC has constructed actually have INCREASED salmon in the streams (Gartina and Gunnuk Creeks) post construction. 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 The Jenny Creek reconnaissance study will identify all permits to develop the hydro project, if it is deemed viable. We anticipate that both an ADNR water rights permit, and an ADFG title 16 permit will be required to proceed. Any other required permits/licenses will be identified as part of the reconnaissance study. 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. AEA23001 Page 16 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY In the past, IPEC has briefly discussed the hydro potential of Jenny Creek with Kake Tribal Corporation, the land owner, and they suggested it be studied. We continue to promote this potential, but without the reconnaissance study there isn't much to warrant a more serious discussion. It is our hope that the study will provide more fuel for thought and discussion with Kake Tribal Corporation and the community of Kake. If the study proves Jenny Creek could be a viable renewable energy resource for Kake, more discussion will take place including formal approval by the land owner. I 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. Project technical and environmental risks will be determined if the reconnaissance study warrants further study of Jenny Creek as a viable project. 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 The Jenny Creek hydro reconnaissance study will help determine whether or not the project warrants further study to determine any and all environmental risks of the potential project. No environmental risks are obvious at this point in the investigation of the resource. 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. I 5.4.1 Basic Operation of Existing Energy System AEA23001 Page 17 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY 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. IPEC continues to operate a safe, reliable electric system for Kake as it has for several decades. Our outages have been short and infrequent which mostly occur from incidents for which we have little to no control. We provide power to a small load of residential heat pumps, but we limit the number in order to prevent community black-outs during the defrost cycle. Spinning reserves are minimal since IPEC owns, operates and maintains several generators of different sizes at Kake. A mixture of hydro and diesel generation provides 100% of Kake's electric power. When hydro output is low or decreasing, the controls start up an engine. A SCADA system is in place, and we monitor energy production and usage electronically on a daily basis. 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: Diesel, Caterpillar 3456 Genset, 475 kW capacity, 142 kW min load, 1800 RPM, electric fuel injection, Woodward EasyGen Controller, 9,991 hours, installed 2017 Unit 2: Diesel, Caterpillar 3456 Genset, 475 kW capacity, 142 kW min load, 1800 RPM, electric fuel in"ection, Woodward EasyGen Controller, 4,271 hours, installed 2017 Unit 3: Diesel, Caterpillar 3456 Genset, 475 kW capacity, 142 kW min load, 1800 RPM, electric fuel injection, Woodward Eas)'Gen Controller, 4,567 hours, installed 2017 Unit 4: Diesel, Caterpillar 3456 Genset, 475 kW capacity, 142 kW min load, 1800 RPM, electric fuel injection, Woodward EasyGen Co~troller, 7,343 hours, installed 2017 Unit 5: Gunnuk Creek hydro, Canyon Hydro -Crossflow Turbine, 500 kW capacity, 58.5 feet, 135 CFS, 10 kW min load, 193 RPM (1200 Generator RPM), electric, PLC Controller, 7,343 hours, in_!;talled 2020 Unit6: Is there operational heat recovery? (Y/N) If yes estimated No heat recovery. annual displaced heating fuel (gallons) 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. IPEC's Kake distribution system operates at 12,470/7200 volts. The distribution system is made up of two powerhouses . IPEC's diesel plant contains four diesel generators (4 at 475 kW), and IPEC's hydro plant is powered by a Canyon Hydro crossflow turbine rated at 500 kW. There is just one AEA23001 Page 18 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY feeder to cover the community of Kake. The diesel power plant is connected to the community with a single 750 kVA 480/12,470 volt step up transformer. IPEC's Gunnuk Creek Hydro operates on the same single feeder that the rest of the community is on . It is connected to the distribution system with a single 750 kVA 480/12,470 volt Transformer. IPEC does not have any transmission assets in Kake. All power is transmitted at distribution voltage levels (12,470/7,200 Volts). If Jenny Creek reconnaissance suggests a viable hydro project for Kake, a short . 75 mile distribution line extension will tie the project in to IPEC's existing distribution system. 5.4.2.3 Existing Thermal Generation Units (if applicable to you~eroject) Generation Resource/ Design Make Model Average unit Fuel type capacity annual (MMBtu/hr) efficien ~y See Year Installed section 5.4.2.1 -- ----+ Hours 5.4.2.4 O&M and replacement costs for Power Generation Thermal Generation existing units i. Annual O&M cost for labor 400 ,000 ii. Annual O&M cost for non-labor 100,000 iii. Replacement schedule and cost for Hydro assets are new, Unknown -new powerhouse existing units installed 2020 and gensets installed 2017 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 Gene ratio 2021 on(Type n (Type 2) 1) (kWh) (kWh) Diesel Gunnuk generatio Creek n _hydro January 104,461 105,606 February 36,843 176,800 March 8,604 184,165 April 96,614 96,670 May 92,848 76,390 June 91 ,868 101,949 -- July 21,842 140,328 August 28,244 160,234 I Sept 77,213 110,253 AEA23001 --- Gene ratio Fuel n (Type 3) Consuniptio (kWh) n Not (Diesel- applicable Gallons) 8,435 [10,849 11,776 6,660 5,718 + 7,33 1 10,493 _,10,123 --__.L037 Page 19 of32 Fuel Consumpt n [Other] io Pea k Loa d (Die sel only ), 141 314 354 122 242 ~ 254 312 312 222 I Minimu m Load 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form October 115,558 58,504 J -rr:075 t November 93,606 110,548 421 __ December 87,043 132,192 188 Total 857,844 1-1 ,453,639 100,106 5.4.2.6 Annual Heating Fuel Consumption (Existing System) - ALASKA ENERGY AUTHORITY 124 _1 ____ 257 J 377 -I Use most recent year. Include only if your project affects the recovered heat off the diesel genset or will include ~ectric heat loads. Only include heat loads affected by the project. Month Diesel Electricity Propane Coal Wood Other (Gallons) (Gallons) (Tons) (Cords, January February March April Ma y June --July August -!-- September ---[- October November December Total 5.4.3 Future Trends green tons, -1-d ry tons ) ---· - - - ---- - -- ------ - -- 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. IPEC doesn't anticipate any large increases or reductions in energy demand at Kake. However, this could change if the Kake cold storage is put back online. If it does, we have adequate diesel/hydro generation resources to provide power for the increase in electric demand. No forecast was developed , since the town has experienced stable energy requirements for more than a decade. No new loads are anticipated unless/until a cheaper source of power is identified and put online. The Gunnuk Creek hydro project has been online since Oct 2020. IPEC is pleased with its output so far, and its output has been maximized over 2021 with efficiency adjustments. We believe Gunnuk Creek will provide a greater slice of the energy demand in Kake in 2022 with good rainfall and snowpack. However, if Jenny Creek can supplement Gunnuk Creek's output, that will help reduce the amount of diesel costs and carbon emissions going forward. The Jenny Creek hydro reconnaissance study will help estimate the extent and portion of displaced diesel generation potential for the community. If the project proves viable, and can be constructed primarily with grant funding, it will result in reduced energy costs for the community. 5.4.4 Proposed System Design Provide the following information for the proposed renewable energy system: AEA23001 Page 20 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form • A description of renewable energy technology specific to project location ALASKA ENERGY AUTHORITY • 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 Jenny Creek hydro reconnaissance study will help identify many characteristics of the proposed system design, if it is deemed to be a good hydro resource for the community of Kake. This is the primary reason for exploring the viability of Jenny Creek. The proposed capacity will be partially determined from the study. The integration plan will include about .75 miles of distribution line to bring the power to Kake, AK. No new buildings, aside from a powerhouse, are anticipated for the project at this time since Jenny Creek is along the current Kake road system. Backup and supplemental power is provided by IPEC's current diesel plant in Kake, as well as from the Gunnuk Creek hydro project, both of which are owned and operated by IPEC. 5.4.4.1 Proll_osed Power Generation Units Unit# Resource/ Design Make Model Expected Expected Expected Fuel type capacity capacity life Availability (kW) factor _{years ) - To be determined _L ~ ---- --~ l 5.4.4.2 Proposed Thermal Generation Units (if applicable) Generation Resource/ Design Make Model Expected Expected unit Fuel type capacity Average life (MMBtu/hr) annual efficienc - N/A -c- - J 5.4.5 Basic Operation of Proposed Energy System AEA23001 Page 21 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY • 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. To be determined by the reconnaissance study if it deems further investigation. 1 5.4.3.1 Expected Capacity Factor Unknown j % L__ __ _ 5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed SystemL - Month Generation Generation Generation Fuel Fuel Secondary Storage (Proposed {Type 2) (Type 3} Consumption Consumption System) (kWh) (kWh) (Diesel- (kWh ) Gallons ) January Unknown -February March --- _April - May June July ---I August -1 September ----- October November --l-December -- - Total 5.4.5.3 Annual Heating Fuel Consumption (Proposed System) Month Diesel Electricity Propane Coal (Gallons) (Gallons) (Tons) January N/A February March ~pril May June July August September AEA23001 l Page 22 of32 1 [Other] - - - - I _L r- Wood (Cords, green tons, dry tons) - - - load (kWh) (kWh) '-- - -- ,------- - Other 11/16/2021 I • Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY I Odo~r 1 Novem~r December Total f -f- 5.4.6 Proposed System Operating and Maintenance (O&M) Costs -J 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. O ption 1: Diesel generation ON For projects that do not result in shuttin g down $ Unknown until further study is completed diesel g eneration there is assumed to be no impact on the base case O&M. Please indicate the estimated annual O&M cost associated with the proposed renewable project. Option 2: Diesel generation OFF For projects that will result in shuttin g down diesel generation please estimate: 1. Annual non-fuel savings of shutting off diesel generation 1. Unknown until further study is completed to provide estimates 2. Estimated hours that diesel generation will be off per year. 2. Hours diesel OFF/year: 3. Annual O&M costs associated with the proposed renewable project. 5.4. 7 Fuel Costs 3. $ Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of operation) Unit cost ($) Annual Units Total Annual cost(~) Diesel Electricity (Gallons) Unknown -'- 5.5 Performance and O&M Reporting For construction projects only 5.5.1 Metering Equipment Propane (Gallons) Coal (Tons) -I- Wood Other -- ----'--------- Please provide a short narrative, and cost estimate, identifying the metering equipment that will be used to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. AEA23001 Page 23 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY Unknown at this time. If Jenny Creek is determined to be a viable energy resource further study will be conducted. 5.5.2 O&M reporting Please provide a short narrative about the methods that will be used to gather and store reliable operations and maintenance data, including costs, to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications Unknown at this time (reconnaissance study). I SECTION 6-ECONOMIC FEASIBILITY AND BENEFITS I 6.1 Economic Feasibility I 6.1.1 Economic Benefit Annual Lifetime Anticipated Diesel Fuel Displaced for Power Unknown without Generation (g allons ) more data/info Anticipated Fuel Displaced for Heat (gallons ) Total Fuel disp laced (g allons) Anticipated Diesel Fuel Displaced for Power Generation ($) Anticipated Fuel Displaced for Heat ($) Anticipated Power Generation O&M Cost Savin g s Anticipated Thermal Generation O&M Cost Savin g s Total Other costs savings (taxes, insurance, etc.) Total Fuel, O&M, and Other Cost Savings 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-App lication . This economic model may be AEA23001 Page 24 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY 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. Since this is a reconnaissance study of Jenny Creek, we do not know the answers to these questions and cannot answer with any degree of certainty. However, if Jenny Creek is deemed to be a viable source of hydro power for Kake further study will help provide answers. 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 Fuel prices are on the rise, currently. There are no known other projects currently in the works for Kake. There are no known anticipated reductions in energy demand, and the current demand is met by diesel and hydro generation. If a project at Jenny Creek is viable and can be completed with grant funding, costs of service and therefore consumer electric rates will go down. IPEC continues to provide exemplary maintenance to its existing electric plant assets. There is no deferred or inadequate facility maintenance. 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. All electric sales are from the community of Kake's residential, business, tribal, churches, and City operations. Renewable energy resource availability (kWh per month ) Unknown/NA Estimated direct sales to private sector businesses (kWh ) Revenue for dis p lacin g diesel generation for use at p rivate sector businesses ($) Estimated sales for use by the Alaskan public (kWh ) Revenue for dis p lacin g diesel generation for use by the Alaskan public ($) 6.2 Other Public Benefit Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the purpose of evaluating this criterion, public benefits are those benefits that would be considered unique to a given project and not generic to any renewable resource. For example, decreased greenhouse gas emission, stable pricing of fuel source, won't be considered under this category. AEA23001 Page 25 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form Some examples of other public benefits include: ALASKA ENERGY AUTHORITY • 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 community of Kake has been working on renewing its fish industry, including the restarting of the Kake Tribal Corporation's cold storage. However, they have struggled to do so with the high cost of electricity required to run the plant. If IPEC can provide economic rates to the fish plant through development of the Jenny Creek hydro, it will provide much-needed jobs to the community through more local fishers, and from employment at the fish plant. Again, this grant application if funded will only be a preliminary step in further reducing diesel dependence and rates to the community of Kake. 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 with reconnaissance and further study. IPEC has owned and operated its systems since 1977, and it has successfully built two operating hydro projects. IPEC's staff is well- trained in utility operations and has a stand-up record of compliance with all grants and laws. 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. AEA23001 Page 26 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY IPEC has been providing electricity for its communities since 1977. We have successfully accounted for operation and capital costs since inception, including successfully obtaining and accounting for grant-funded plant. We always have clean, exemplary audits from outside auditors. IPEC is no longer rate-regulated by the RCA. However, IPEC still uses the semi-annual Simplified Rate Filing (SRF) workbook to determine its rates, which is approved by its Board of Directors. Each of IPEC's board members is elected by and accountable to the communities they represent. They pay the same rates as all of IPEC's member-consumers. IPEC files quarterly cost of power adjustments (COPA) with the RCA, and we also have always filed Power Cost Equalization billings with the State of Alaska, and complied with all State and Federal requirements. IPEC has a robust bill collection system, and has a very low uncollectible percentage of sales- less than 2% per year. We work with our member-consumers to give them extra time to pay, and they almost always do pay their electric bills. We have an extremely low disconnect rate. 7.1.2.1 Revenue Sources Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area over the life of the project. If there is expected to be multiple rates for electricity, such as a separate rate for intermittent heat, explain what the rates will be and how they will be determined Collect sufficient revenue to cover operational and capital costs • What is the expected cost-based rate (as consistent with RFA requirements) • If you expect to have multiple rate classes, such as excess electricity for heat, explain what those rates are expected to be and how those rates account for the costs of delivering the energy (see AEA's white paper on excess electricity for heat) .. • Annual customer revenue sufficient to cover costs • Additional incentives (i.e. tax credits) • Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) Since this is a reconnaissance study only, answers to these questions cannot be answered at this time. However, IPEC has successfully integrated new plant into its system with no issues, providing rate reductions as costs of service decline, and cost increases if costs increase. We are a non-profit consumer-owned and governed electric cooperative. 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. N/A I SECTION 8 -PROJECT READINESS AEA23001 Page 27 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form 8.1 Project Preparation ALASKA ENERGY AUTHORITY 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 Jenny Creek hydro reconnaissance study is the first step in identifying the hydro potential of the creek. All necessary permits and land rights will be identified with this study. No new equipment is necessary to complete the reconnaissance study. 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. Not applicable since this is the first phase of potential development of Jenny Creek hydro. 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. Contact has been initiated with landowner, Kake Tribal Corporation, to discuss the potential for grant funding for the reconnaissance study of Jenny Creek. KTC has suggested development of Jenny Creek in the past, and thus no opposition is anticipated from them or other community members. 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. IPEC has received several grants from the REF including funding for the Gartina Falls hydro project at Hoonah, and the Gunnuk Creek hydro project at Kake. We also received funding to study the geothermal potential at the head of Tenakee Inlet. IPEC is in full compliance with all AEA23001 Page 28 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY requirement of the grants it has received from AEA, and from the USDA High Energy Cost grant program. 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. N/A-reconnaissance is the first phase of the project. SECTION 12-LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below, please provide a list of additional information submitted for consideration. Proposal/scope of work with cost estimate from HDR for Jenny Creek Reconnaissance Resumes from key staff and from Paul Berkshire of HDR Email affirmation from IPEC's board of directors approving the grant application for Jenny Creek reconnaissance. Google Earth picture of Kake, noting Jenny Creek location (2 pictures) Kake Power Plant meter readings, calendar year 2021 Kake fuel schedule 2021 AEA23001 Page 29 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form I SECTION 13-AUTHORIZED SIGNERS FORM Community/Grantee Name: Inside Passag e Electric Coop erative ALASKA ENERGY AUTHORITY Regular Election is held: Sp rin g of each year, usually late Ma y or earl y June I Date: last election held early June 2021 I Authorized Grant Signer(s): Printed Name Title Jodi Mitchell CEO/General Manager Brandon Shaw Operations Manager Roxanne Drake-Burkhart Controller Term Ongoing since 1993 Ongoing Ongoing since 1995 I authorize the above person(s) to sign Grant Documents: Signature 1 Must be authorized b y the highest ranking organization/community/municip al official} Printed Name Title Term Signature Larry Beck Chair of the Board I Grantee Contact Information: Mailing Address: P.O. Box 210149, Auke Bay, AK 99821-0149 Phone Number: (907) 789-3196 Fax Number: (907) 790-8517 Email Address: J Mitchell@ I nsidePassageEiectric.org Federal Tax ID #: 43-1964262 Please submit an updated form whenever there is a change to the above information. AEA23001 Page 30 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form SECTION 14-ADDITIONAL DOCUMENTATION AND CERTIFICATION ALASKA ENERGY AUTHORITY 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 Jodi Mitchell Signature ;r,t ~ekW\_ ~ Title Chief Executive Officer/General Manager Date January 18, 2022 AEA23001 Page 31 of32 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY Please note that IPEC has not had a board meeting since November 18, 2021. Because of this, we are not attaching a board resolution formally authorizing the grant application, nor do we have an original signature from the Board Chair/President. We will, however, obtain both of these at our next board meeting. To make up for this, we are providing emails from each of I PEG's five board members authorizing the grant application, unanimously. We sincerely hope this is adequate for the grant submittal. AEA23001 Page 32 of32 11/16/2021 t BACKGROUND Jenny Creek Hydroelectric Project Reconnaissance Study Inside Passage Electric Cooperative (IPEC) is the local power utility serving Kake, AK. IPEC recently completed the Gunnuk Creek hydroelectric project in Kake and is now looking to augment their renewable energy capability with additional resources. Jenny Creek has been identified as a potential site for future generation. Jenny Creek is approximately 0.75 east of the Kake boat harbor. IPEC desires to perform a reconnaissance level study to ascertain whether further investigation is warranted. HDR Engineering, Inc. (HDR) hereby proposes the following scope of work. SCOPE OF WORK Task 1: Site Reconnaissance Task la: Data Collection and Review HDR will collect the following background information, as it may exist, for the proposed site: o Previous reports that may have investigated the site. o Aerial photography for project site. o Lidar survey information o USGS stream flow data for nearby creeks. o Land ownership records for project area. o Alaska Department of Natural Resource (ADNR) water rights data. o Alaska Department ofFish and Game Fish Distribution Database. Task 1 b: Perform Field Reconnaissance. HDR will perform site reconnaissance and will attempt to accomplish the following objectives: o Assess possible powerhouse and intake locations and penstock routes. o Review site access for construction and operations and maintenance. o Document locations of project features with GPS. o Evaluate fisheries aspects of stream. o Review route for transmission line and tie in location. o Assess possible site for potential stream gage. An initial aerial reconnaissance will be performed by helicopter out of Juneau followed by an on- site field verification. HDR Engineering, Inc. Page 1 of3 Jenny Creek Hydroelectric Project Task 2: Reconnaissance Report Task 2a-Prepare Conceptual Project Layout HDR will prepare a conceptual layout of the basic project features. Layout will include recommended intake, diversion, penstock, powerhouse, tailrace and transmission line and access. Discussion will include construction methods and materials and identify geologic, engineering and environmental issues. Task 2b-Hydrology HDR will conduct a desk top exercise to evaluate the drainage basin area and compare the drainage basin to existing USGS stream gage data and develop a mean daily flow series. There are a number of potential USGS sites which may provide a reasonable correlation to the Jenny Creek watershed. Task 2c-Estimate Power Output HDR will provide an estimate of potential energy for the project. A table of project characteristics will be used as model inputs. These characteristics will include: o Headwater elevation o Tailwater elevation o Design Flow o Turbine type, size and efficiency o Water conveyance size and length The mean daily flow data prepared in task 2a along with project characteristics will be used to prepare an estimate of the monthly and annual average energy generation. Task 2d: Estimate of Probable Construction Cost HDR will provide a reconnaissance level cost estimate. Material prices will be solicited from vendors for major equipment, materials, and delivery costs. Cost estimate will include the cost of permitting, design and construction. An estimated cost per kWh will be provided using financial input parameters provided by IPEC. Task 2e: Reconnaissance Report HDR will compile the work of the previous tasks into a brief report. This report will recommend a project conceptual design and will include the work from tasks 2a to 2d. Report will include a cover letter describing recommended conceptual design. Report will be provided in PDF format. Report graphics will include a location map, aerial photo base map overlain with concept design components and site photos annotated with project features. HDR Engineering, Inc. Page 2 of3 • Jenny Creek Hydroelectric Project SCHEDULE Site reconnaissance will be done as soon as possible after notice to proceed and when the area is clear of snowfall. Draft report with cover letter will be provided for IPEC comment within 90 days of field reconnaissance. Final report will be provided within 30 days of receipt of consolidated comments on draft report. ASSUMPTIONS • The costs estimate is based on 2022 billing rates and may change in subsequent years • Field reconnaissance will be completed by 1 HDR staff member and 1 IPEC staff member • The draft and final reconnaissance reports are only deliverables included in the scope of work. HDR Engineering, Inc. Page 3 of3