HomeMy WebLinkAboutPilot Point REF14 ApplicationRenewable Energy Fund Round 14
Grant Application – Standard Form
AEA 23001 Page 1 of 28 11/16/2021
SECTION 1 – APPLICANT INFORMATION
Please specify the legal grantee that will own, operate, and maintain the project upon completion .
Name (Name of utility, IPP, local government, or other government entity)
Tax ID # 92-0141460
Date of last financial statement audit:
Mailing Address: Physical Address:
Box 430 1100 Main St.
Pilot Point, AK Pilot Point, AK
99649 99649
Telephone: Fax: Email:
907-797-2200 907-797-2211 cityclerk@pilotpointak.gov
1.1 Applicant Point of Contact / Grants Coordinator
Name: Title:
Gregory Kingsley Renewable Energy Coordinator
Mailing Address:
Box 442
Pilot Point, AK
99649
Telephone: Fax: Email:
907-310-8920 907-797-2211 gregorykingsley@gmail.com
1.1.1 Applicant Signatory Authority Contact Information
Name: Title:
Janice Ball Mayor
Mailing Address:
Box 430
Pilot Point, AK
99649
Telephone: Fax: Email: cityclerk@pilotpointak.gov or
gregorykingsley@gmail.com
907-797-2269 907-797-2211
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
Steve Kramer 907-797-4141 907-797-2211 sconradk@yahoo.com
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.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 gover ning
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)
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SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Pilot Point Comprehensive Community Wind/Solar/Storage & Heat 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 a ssistance obtaining this information , please contact
AEA’s Grants Coordinator by email at grants@akenergyauthority.org or by phone at (907) 771-
3081.
Latitude 57 33’ 22.19” Longitude 157 34’ 33.59”
[Other description of location]
Ugashik Bay, north side of the Alaska Peninsula, southern district of Bristol Bay along the Bering Sea, a
Lake and Peninsula Borough 2nd class city municipality and BBNA/BBNC/BBEDC/BBAHC/BBHA
community 90 miles south of King Salmon.
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Pilot Point and Ugashik Bay
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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2.4 Project Description
Provide a brief, one-paragraph description of the proposed project.
Purchase and install 16 Xalt Energy XPANDXMP111E Battery modules
(180kW/176 kWh battery system, with expansion to 300 kW/352 kWh+)
energy storage system (BESS). This will be integrated into and accommodates existing infrastructure
installed in 2019 consisting of two 100 kW XANT wind turbines and 16 installed ETS heaters in community
Another 10 ETS already purchased by the community will be installed/integrated in homes in Pilot Point.
Due to the remoteness and complex integration of this system, post-installation support is required and
included in this project.
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.
• Design and engineering to procure, ship, install, and integrate battery/BESS system
• Installation of battery cabinet and thermal management system into remodeled powerhouse includes
installation of batteries, power converter, transformer, and power plant bus interconnections
• Interface battery management software, communications equipment for interface to internet, Wind
Diesel BESS system integration, system commissioning and monitoring two-year service and
support
• Onsite operations and maintenance training and manuals generated for onsite oversight.
• Install/integrate 10 ETS units
• Post-installation service and support – remote and on-site.
1. Site Services: Funds are being requested to contract with iES to provide a 2 year service
and support level contract to provide engineering and technical technical support to insure
the wind diesel battery system is operating properly. The service and support contract has
two elements: advanced remote monitoring and technical assistance.
The technical assistance includes: System component support and on call support. System
component support is provided through during normal business hours from 8 am to 5pm
Alaska standard time, 5 days per week excluding US holidays. The support package
includes an advanced monitoring package, and a facility support program, which entitles up
to 24 hours of remote assistance annually for each of first two years of operation, and 80
hours per year of on-call support.
Remote assistance support consists of a regular support calls and data analysis to evaluate
system status. Based on previous experience local oper ators and managers require a
higher level of remote support during the first two years of operation. This level of service is
call support is provided The support package requires that Pilot Point powerplant provide a
secure access portal to the wind diesel supervisory control system and the BESS system,
via a secure tunnel. If iES or BESS technicians or engineers determine that onsite work is
required to remedy an issue, either under warranty or not a service visit will be scheduled
with Pilot to perform the necessary work. While Pilot will be responsible for maintaining the
internet. This extended maintenance contract for 2 years is $72,000 and includes yearly on -
site technical visits each year for up to 3 days each time. The on -site visits include travel,
with the utility to provide local housing and transportation. It is anticipated that the need for
a high level of on-site technical assistance will not be required after the first two years of
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operation. On-site technical assistance is intended to provide training and assistance to
maintain the wind, battery, and electric thermal storage systems.
Funds are being requested to furnish and install an advanced cloud -based energy monitoring
system designed to automatically, manage and analyze battery and overall wind diesel system
performance. The system is designed to aggregate data from the various distributed assets, as
well as meters and sensors, to automatically track performance. The primary purpose of the
advanced monitoring system is to create a holistic view of each component in the system to ensure
overall power system reliability, grid stability, increase renewable availability and optimize overall
power system operations.
2.6 Previous REF Applications for the Project
See Section 1.15 of the RFA for the maximum per project cumulative grant award amount
Round
Submitted
Title of application Application
#, if known
Did you
receive a
grant? Y/N
Amount of REF
grant awarded
($)
2 Pilot Point Wind Power & Heat 409026 Y 1,421,240
#7030007 Y
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SECTION 3 – Project Management, Development, and Operation
3.1 Schedule and Milestones
Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding
request. Be sure to identify key tasks and decision points, including go/no go decisions, in your
project along with estimated start and end dates for each of the milestones and tasks. Please
clearly identify the beginning and ending of all phases (I. Reconnaissance, II. Feasibility and
Conceptual Design, III. Final Design and Permitting, and IV. Construction) of your proposed
project. See the RFA, Sections 2.3-2.6 for the recommended milestones for each phase. Add
additional rows as needed.
Task
# Milestones Tasks
Start
Date
End
Date Deliverables
1 Contract and Final
Scope of Work
Sign contract and
clarify any items
w/Contractor
Notice
of
Award
+ 30
Days
Signed agreements and
schedule of work as well
as subcontracts and
timelines for project
execution
2 Work Plan & Site
Control
IES to be present for
special council
meeting to approve
work plan/timeline
and site control
Within
30 days
Within
60 days
of
Award
City Council Special
Meeting to finalize all
agreements approve
workplan with IES
representatives; to
include site inspection of
BESS housing facility
3 Final Design Final Design to
AEA for approval
as well as to Pilot
Point City
Council
Within
60 days
of
Award
Within
90 days
of
Award
City Council meet and
examine final design
approved byAEA and
presented by IES
for a council vote of
approval
4 BESS Procurement Depending on Award
and calendar – due to
long lead time, order
the BESS. 50%
required
Within
30 days
of
Award
Within
120
days of
Award
All parts and components
approved and ordered for
delivery on either last
barge in the fall or first one
in the
spring from Seattle to
Naknek
5 Final BESS payment Final payment Within
5
months
of
Award
Within
8
months
of
Award
Final payment invoice
6 Mobilization and
Shipping
S hipping and
delivery schedules
finalized and
executed on all parts
of the project
Within
6
months
of
Award
Within
6-10
months
of
Award
A final schedule of
mobilization an d delivery
from factory to project site
in Pilot Point will
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determine project
completion schedule
7 Construction The BESS project
will be assembled
and constructed
within a designated
and prepared space
in Pilot.
10 ETS units
installed
Within
7
months
of
Award
Within
10
Months
of
Award
Current diesel generator
housing and switch gears
etc. located less than 50
feet from
old generator building,
enabling complete
construction before
integration.
ETS installed in 10 homes.
8 Construction System Integration Within
9
months
of
Award
Within
9 -12
of
Award
All systems inspected and
signed off by AEA, IES
and City of Pilot Point third
party designate. Reports to
AEA, City of Pilot Point, L
& P Borough
9 Commissioning Trial Period of
operations
Within
11
months
of
Award
Within
15
months
of
Award
All systems inspected and
signed off by AEA, IES
and City of Pilot Point third
party designate. Reports to
AEA, City of Pilot Point, L
& P Borough
10 O&M IES will provide 2
years of system
monitoring and
reporting
Within
15
months
of
Award
Within
27-39
months
of
Award
Two years of system
monitoring and
adjustments or
repairs/replacements if
necessary.
Minimum of Annual Site
Inspection
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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 $ 495,500
Cash match to be provideda $ 125,000
In-kind match to be provideda $ 200,500
Energy efficiency match providedb $
Total costs for project phase(s) covered in application (sum of
above)
$ 821,000
Describe your financial commitment to the project and the source(s) of match. Indicate whether
these matching funds are secured or pending future approvals. Describe the impact, if any, that
the timing of additional funds would have on the ability to proceed with the grant.
The City of Pilot Point has been working to develop this full community energy system since Round 2 of the
RE0 program.
For Round 14 specifically we have $325,000 in Match
$125,000 Cash Match
$ 95,000 power inverter purchased with non-State funds
$105,000 value for the 10 ETS units that will be installed with this project
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.
None anticipated.
However, the City of Pilot Point is committed to the completion of this project and its successful
implementation. We collect a 3% raw fish tax from the Ugashik District commercial salmon fishery that
comprises one of the five main sockeye systems of Bristol Bay. This year we will collect over $900,000. in
taxes and have contributed to o&m accounts for both bulk fuel and generator replacement. We also have
good credit standing and are capable of borrowing money if necessary. The City has the services of two
experienced grant writers who are also residents that have secured the funds to date for the project thus far
and the City has contributed well over $1,000,000. to the project thus far.
3.2.3 Total Project Costs
Indicate the anticipated total cost by phase of the project (including all funding sources). Use actual
costs for completed phases. Indicate if the costs were actual or estimated.
Reconnaissance [Actual/Estimated] $
Feasibility and Conceptual Design [Actual/Estimated] $
Final Design and Permitting [Actual/Estimated] $
Construction [Actual/Estimated] $ 821,000
Total Project Costs (sum of above) Estimated $
Metering/Tracking Equipment [not included in project
cost]
Estimated $
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3.2.4 Funding Subsequent Phases
If subsequent phases are required beyond the phases being applied for in this application,
describe the anticipated sources of funding and the likelihood of receipt of those funds.
• State and/or federal grants
• Loans, bonds, or other financing options
• Additional incentives (i.e. tax credits)
• Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
No subsequent phases planned at this time.
3.2.3 Budget Forms
Applications MUST include a separate worksheet for each project phase that was identified in
Section 2.3.2 of this application — I. Reconnaissance, II. Feasibility and Conceptual Design, III.
Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail
your proposed project’s total budget. Be sure to use one table for each phase of your project, and
delete any unnecessary tables. The milestones and tasks should match those listed in 3.1 above.
If you have any question regarding how to prepare these tables or if you need assistance preparing
the application please feel free to contact AEA’s Grants Coordinator by email at
grants@akenergyauthority.org or by phone at (907) 771-3081.
Phase 4 — Construction
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See Sections 2.3 thru 2.6 of
the RFA )
$ $
Site application review and
inspection
$31,280 $ $31,280
Final design drawings $36,400 $ 9,000 $45,400
Order long lead time items
(50% deposit)
4 weeks
after funding $58,000 $48,000 $106,000
Final BESS payment and
shipping costs
5-6 months
after funding $70,500 $68,000 $138,500
Installation of battery & Power
Converter
28-40 weeks
after funding $103,000 $95,000 198,000
Integration and commissioning
of battery and full system
40-60
months after
funding
$45,500 $45,500
Install and integrate ETS Units
38-44 weeks
after funding $78,820 $105,500 $184,320
Operation, monitoring, support
12-24
months after
installation
$72,000 $ $72,000
$ $ $
$ $ $
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$ $ $
$ $ $
TOTALS $495,500 $325,500 $821,000
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $325,500 $325,500
Contractual Services $495,500 $ $495,500
Construction Services $ $ $
Other $ $ $
TOTALS $495,500 $325,500 $821,000
3.2.4 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget, including costs for future
phases not included in this application.
Contractor’s proposal and previous experience with renewable energy projects in Pilot Point. We
have included a substantial cash match based on our experience of what a project like this costs.
3.3 Project Communications
3.3.1 Project Progress Reporting
Describe how you plan to monitor the progress of the project and keep AEA informed of the status.
Who will be responsible for tracking the progress? What tools and methods will be used to track
progress?
The contractor will provide on-going reports to the City of Pilot Point, based on milestones and
deliverables. City of Pilot Point will then provide those deliverables to AEA with a request for cost
reimbursement.
Our selected contractor has worked with Pilot Point for many years and has deep experience
working with communities that have received AEA-REF grants, and understands AEA-REF’s
reporting requirements.
3.3.2 Financial Reporting
Describe the controls that will be utilized to ensure that only c osts that are reasonable, ordinary
and necessary will be allocated to this project. Also discuss the controls in place that will ensure
that no expenses for overhead, or any other unallowable costs will be requested for reimbursement
from the REF Grant Program.
The contractor will provide invoices based on milestones/deliverables to the City, and we will
then provide those deliverables to AEA with a request for cost reimbursement.
Only contractor’s cost will be requested from the REF Grant Program.
Pati Crofut, an independent grant administrator, accountant, consultant, and trainer, will also
support our efforts.
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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.
Project Manager is Greg Kingsley, Renewable Energy Coordinator for Pilot Point.
Dennis Meiners (Lead Contractor Project Manager, Intelligent Energy Services, LLC
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 soli cit financial accounting support.
Monica Ekutmelra is the City’s Bookkeeper
In conjunction with working with the City, Pati Crofut will serve as our support person for ensuring
AEA’s project accounting is done correctly and in a timely manner.
4.1.3 Expertise and Resources
Describe the project team including the applica nt, 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.
Dennis Meiners (Lead Project Manager) – (Lead/Responsible for all Milestones)
Jean-Paul Pinard, PhD, P.Eng. (Consulting Engineer), Expert in modeling wind energy in Arctic
conditions and is a published peer-reviewed researcher on this subject. For over 27 years Dr.
Pinard has been evaluating wind resources across Yukon, Northwest Territories and Nunavit
communities. He has extensive experience in the energy sector as an engineer, scientist, lecturer,
and advocate on renewable energy. He also specializes in piloting smart wind to energy storage in
homes and businesses. Evaluates wind and renewable energy in remote communities of Alaska
and Canada by conducting energy modelling and data analysis. Extensive work with Indigenous
communities to empower their renewable energy economies.
(Milestones 1– Senior Consultant; Milestones 2-5 and Associated Tasks: Consultant and Editor for
Written Documentations)
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Dale Letourneau (Electrical Engineer), Specializing in remote, independent energy generation and
grid systems, with more than 40 years of experience in design and construction of these systems.
Extensive experience managing and conducting energy projects in Alaska’s harsh, remote
conditions and communities.
(Co-Lead for Milestones 3, 4, 5, 6,7 and Associated Tasks)
Ian Knapp (Research Technical Specialist),
(Assist with Milestones 1-10 and Associated Tasks)
4.2 Local Workforce
Describe how the project will use local labor or train a local labor workforce.
Working with local power plant operators, renewable energy coordinator will be required. No funds
are being requested for their time.
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.
The wind system and related wind resource are such that the addition of a battery will allow our community
to turn our diesel engines off and run on wind-only for up to 4,000 hours annually. The grid stabilization
provided by the BESS system will increase fuel displacement to approximately 21,450 gallons of diesel
annually, saving us approximately $64,350 per year in fuel expenditures. Diesel-off operations will also
offset operations and maintenance (O&M) expenses at a rate of approximately $8 per hour, or $32,000
annually.
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.
Pros of adding BESS
-Diesel-off operation and savings
-Grid stability
-Ability to capture and use more available wind energy
-Ability to expand hybrid system with future solar, etc.
Cons of adding BESS
-None
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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
Pilot Point will acquire all applicable permit requirements before construction, including those from the
Corps of Engineers, Environmental Protection Agency, Alaska Department of Environmental Conservation,
Alaska Department of Labor, State Historic Preservation Office, State Fire Marshal, Alaska Department of
Natural Resources, Alaska Department of Fish and Game, and Borough.
At this time we believe that the construction/integration of the BESS and ETS will only require Fire Marshal
oversight.
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.
Project activities will take place on land owned by the City of Pilot Point and approved for this purpose.
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.
Unpredictable weather and the logistics of transport to remote Alaska pose the greatest risk to this project
budget and timeline. While we cannot control the weather or other shipping disruptions, Pilot Point and its
experienced contractors are prepared to adapt plans as necessary should delays or complications arise and
will keep AEA apprised.
Technical risks are low as the project team has the technical expertise and familiarity with the equipment
necessary to ensure safe and efficient operation.
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
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• 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 BESS project is not expected to require any oversight except with Fire Marshall,
However, we will reconfirm this and ensure all reviews and/or permitting are met.
No potential barriers have been identified or are anticipated based on prior experience, knowledge of the
community, and coordination with community leaders.
From previous renewable energy projects in the region, the USFWS, U.S. Corps of Engineers, FAA, and
State of Alaska Department of Natural Resources - State Historic Preservation Office were contacted and
requirements considered. Agency consultations indicated that federal permits would not be needed for this
type of project.
The U.S. Department of the Interior Fish & Wildlife Service has been consulted on previous projects in rural
Alaska, and consultation occurred with respect for impact to endangered species. The Fish & Wildlife
Service has noted previously that this project is near known designated critical habitat in the action area, but
not in an action area of the suspected presence of listed species.
This project will not place fill material on or significantly disturb existing soil in a wetlands area and will not
need a determination from the U.S. Army Corps of Engineers as this project requires. The US Army Corps of
Engineers (USACE) requires a permit if fill is to be placed in “waters of the United States”, including
wetlands and streams, under Section 404 of the Clean Water Act (CWA). The proposed BESS site is not
located on wetlands or streams.
5.4 Technical Feasibility of Proposed Energy System
In this section you will describe and give details of the existing and proposed systems. The
information for existing system will be used as the baseline the proposal is compared to and also
used to make sure that proposed system can be integrated.
Only complete sections applicable to your proposal. If your proposal only generates electricity, you
can remove the sections for thermal (heat) generation.
5.4.1 Basic Operation of Existing Energy System
Describe the basic operation of the existing energy system including: description of control system;
spinning reserve needs and variability in generation (any high loads brought on quickly); and
current voltage, frequency, and outage issues across system. See the “Understanding the Existing
System” section of the appropriate Best Practice Checklist for additional guidance.
In 2019, we completed the installation of two (2) 100 kW Xant M-21 wind turbines and 16 electric thermal
storage (ETS) devices into residential homes. This project, which was funded through the USDA High
Energy Costs Grant program, also included the purchase of an ABB PCS 100 (180 kVa) power converter
($95,000).
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The existing system consists of two (2) Xant M-21 wind turbines, each with a peak rated output of 100 kW.
HOMER programming (originally developed by NREL) estimates indicate an average annual turbine output
(including periods of diesel-off operations) to produce 200,000 kWh annually, and diesel generators.
5.4.2.1 Existing Power Generation Units
Include for each unit include: resource/fuel, make/model, design capacity (kW), minimum
operational load (kW), RPM, electronic/mechanical fuel injection, make/model of genset
controllers, hours on genset
Unit 1: 100 kW Xant M-21 turbine
Unit 2: 100 kW Xant M-21 turbine
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.
5.4.2.3 Existing Thermal Generation Units N/A
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
340,219 kwh 48,094 Gallons
Month Generati
on (Type
1)
(kWh)
Generatio
n (Type 2)
(kWh)
Generatio
n (Type 3)
(kWh)
Fuel
Consumptio
n
(Diesel-
Gallons)
Fuel
Consumptio
n
[Other]
Pea
k
Loa
d
Minimu
m Load
January
February
March
April
May
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).
Is there operational heat recovery? (Y/N) If yes estimated
annual displaced heating fuel (gallons)
No
5.4.2.4 O&M and replacement costs for
existing units
Power Generation Thermal Generation
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor
iii. Replacement schedule and cost for
existing units
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June
July
August
Septembe
r
October
November
December
Total
5.4.2.6 Annual Heating Fuel Consumption (Existing System)
Use most recent year. Include only if your project affects the recovered heat off the diesel
genset or will include electric heat loads. Only include heat loads affected by the project.
Month Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
(Cords,
green tons,
dry tons)
Other
January
February
March
April
May
June
July
August
September
October
November
December
Total
5.4.3 Future Trends
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 energ y demand, peak load, seasonal
variations, etc. that will affect the project.
The population of Pilot Point has increased over the past decade, and the BESS project will allow the power
plant to keep up with current energy demands while having the capacity to grow along with the community.
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
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• 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 Pract ice Checklist for additional
guidance.
The BESS will be located in the old fire hall, adjacent to the powerhouse. The battery room will occupy the
old power generation room in the building, which will need to be refurbished with new wall coverings;
electrical infrastructure; unit heaters; and cooling fans. The fire hall formerly housed the diesel generators and
the fire truck. The building is located adjacent to the new diesel power plant module and is sufficiently secure
with plenty of space to provide additional environmental protection for the battery energy storage system.
The BESS system also includes the ABB PCS 100 power converter (PCS), which has been previously
purchased. The PCS has a continuous power rating of 180 kVa and is designed to be expandable up to 300
kVa.
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
5.4.4.2 Proposed Thermal Generation Units (if applicable) N/A
5.4.5 Basic Operation of Proposed Energy System
• To the best extent possible, describe how the proposed energy system will operate: When will
the system operate, how will the system integrate with the existing system, how will the
control systems be used, etc.
• When and how will the backup system(s) be expected to be used
See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional
guidance.
The BESS system is designed to provide grid voltage and frequency stability during fluctuating wind and load,
sufficient to allow the diesel generators to be turned off whenever there is adequate wind energy to meet our
community load. At the start of a wind event, wind energy will be used to charge the batteries to a level of
around 80%. During a wind event, the fast-rechargeable capacity of the lithium ion batteries will absorb and
supply energy to and from the grid, keeping the grid balanced.
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At the end of a wind event, the energy stored in the battery will provide sufficient bridging time to bring the
diesel engine generators back online. The battery is sized to be charged and discharged at low relative current,
to ensure long life and to maintain sufficient capacity at all times to be able to meet the full peak load for at
least 60 minutes. This is sufficient energy to ensure multiple starting opportunities for the diesel gensets.
5.4.3.1 Expected Capacity Factor %
5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed System)
Production essentially the same
Fuel Consumption Displaced for Power and Heat = 21,450
Month Generation
(Proposed
System)
(kWh)
Generation
(Type 2)
(kWh)
Generation
(Type 3)
(kWh)
Fuel
Consumption
(Diesel-
Gallons)
Fuel
Consumption
[Other]
Secondary
load
(kWh)
Storage
(kWh)
January
February
March
April
May
June
July
August
September
October
November
December
Total
5.4.5.3 Annual Heating Fuel Consumption (Proposed System)
Month Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
(Cords,
green tons,
dry tons)
Other
January
February
March
April
May
June
July
August
September
October
November
December
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Total
5.4.6 Proposed System Operating and Maintenance (O&M) Costs
O&M costs can be estimated in two ways for the standard application. Most proposed renewable
energy projects will fall under Option 1 because the new resource will not allow for dies el
generation to be turned off. Some projects may allow for diesel generat ion to be turned off for
periods of time; these projects should choose Option 2 for estimating O&M.
Option 2: Diesel generation OFF
For projects that will result in shutting down
diesel generation please estimate:
1. Annual non-fuel savings of shutting off
diesel generation
2. Estimated hours that diesel generation
will be off per year.
3. Annual O&M costs associated with the
proposed renewable project.
1. $ 32,000 (4,000 hours of diesel off operation @
$8.00/hour)
2. Hours diesel OFF/year: 4,000
3. $. $72,000 extended maintenance contract
(included)
5.4.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of
operation)
Using an average fuel cost of $4.33/gallon for fuel displaced for power generation, and a generous
conversion efficiency of 14/kWh/gal, this potential value of a diesel-off kWh is $0.30/kWh, whereas heating
fuel at $6.93 for 30 kWh per gallon is the equivalent fuel value of $0.23/kWh.
Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
Other
Unit cost
($)
Annual
Units
Total
Annual
cost ($)
5.5 Performance and O&M Reporting
For construction projects only
5.5.1 Metering Equipment
Please provide a short narrative, and cost estimate, identifying the metering equipment that will be
used to comply with the operations reporting requirement identified in Section 3.15 of the Request
for Applications.
Working with our contractor we will have electronic readings of our system. A report with a
similar system in Kong is below as an example.
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5.5.2 O&M reporting
Please provide a short narrative about the methods that will be used to gather and store reliable
operations and maintenance data , including costs, to comply with the operations reporting
requirement identified in Section 3.15 of the Request for Applications
Pilot Point has kept turbine maintenance logs throughout the operating life of its system and will rely upon
these records to prepare reports to AEA.
SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
6.1.1 Economic Benefit
Annual Lifetime
Anticipated Diesel Fuel Displaced for Power
Generation (gallons)
Anticipated Fuel Displaced for Heat
(gallons)
Total Fuel displaced (gallons) 21,450 214,500
Anticipated Diesel Fuel Displaced for Power
Generation ($)
$64,350 $643,500
Anticipated Fuel Displaced for Heat ($)
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Anticipated Power Generation O&M Cost
Savings
$24,000 $240,000
Anticipated Thermal Generation O&M Cost
Savings
Total Other costs savings (taxes, insurance,
etc.)
Total Fuel, O&M, and Other Cost Savings $109,800 $1,098,000
6.1.2 Economic Benefit
Explain the economic benefits of your project. Include direct cost savings and other economic
benefits, and how the people of Alaska will benefit from the project. Note that additional revenue
sources (such as tax credits or green tags) to pay for operations and/or financing, will not be
included as economic benefits of the project.
Where appropriate, describe the anticipated energy cost in the community, or whatever will be
affected by the project, over the life of the project. Explain how the forecast was developed and
provide year-by-year forecasts
The economic model used by AEA is available at https://www.akenergyauthority.org/What-We-
Do/Grants-Loans/Renewable-Energy-Fund/2021-REF-Application. This economic model may be
used by applicants but is not required. The final benefit/cost ratio used will be derived from the
AEA model to ensure a level playing field for all applican ts. If used, please submit the model with
the application.
The estimated $109,800 in annual cost savings from the BESS means that $109,800 will infuse the local
economy each year. These savings and the resulting potential for new businesses and jobs are significant in
the remote, rural community where the overall poverty rate is 16% (US Census 2019 ACS 5-year survey). This
project will also help decrease dependence on diesel fuel. As Pilot Point and Ugashik Bay expand their
renewable energy capacity, these benefits will only increase.
6.1.3 Economic Risks
Discuss potential issues that could make the project uneconomi c to operate and how the project
team will address the issues. Factors may include:
• Low prices for diesel and/or heating oil
• Other projects developed in community
• Reductions in expected energy demand: Is there a risk of an insufficient market for energy
produced over the life of the project.
• Deferred and/or inadequate facility maintenance
• Other factors
Economic risks for this project are low based on proven technology, experienced contractors, and the success
of similar projects in nearby communities.
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6.1.4 Public Benefit for Projects with Direct Private Sector Sales
For projects that include direct sales of power to private sector businesses (sawmills, cruise ships,
mines, etc.), please provide a brief description of the direct and indirect public benefits derived from
the project as well as the private sector benefits and complete the table below. S ee Section 1.6 in
the Request for Applications for more information.
Any power generated with locally sourced fuel means less money spent on imported diesel, decreased
environmental hazard of delivery and storage of bulk fuel, and increased local job opportunities.
Renewable energy resource availability (kWh per month)
Estimated direct sales to private sector businesses (kWh)
Revenue for displacing diesel generation for use at private sector businesses ($)
Estimated sales for use by the Alaskan public (kWh)
Revenue for displacing diesel generation for use by the Alaskan public ($) $109,800
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 res ource. 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
As renewable energy expands throughout the state, the experiences of small communities like Pilot Point can
inform the design, operation, and upkeep of larger systems.
Reducing dependence on fossil fuels improves the sustainability of our community by:
-Reducing funds spent on fuel, which immediately takes cash out of our small economy as all fuels
must be imported;
-Reducing storage costs of fuel in our tank farm, including the maintenance and long-term
replacement costs of our storage facilities; and
-Reducing the wear and tear on our diesel generators, again reducing both near -term and long-term
costs to our community.
Increasing our use of renewable energy will:
-Stabilize the cost of energy for our remote community within a year of this projec t being
completed. We will reap the benefits and they will continue over the long term. Without harnessing
renewable energy, a remote-rural community like Pilot Point has limited options and is at the mercy of
volatile fuel prices.
-Allow our community to create local jobs because dollars that otherwise would flow out of the
community to pay for fuel can be utilized for community needs.
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Expanding the harvest of local renewable energy resources fosters a stronger economy for the village and the
region. In addition to reducing purchases of diesel fuel, Pilot Point Electric Utility will be able to use the
savings to increase employment at the utility and continue to build a regional workforce for hybrid power
systems.
The socioeconomic benefits of this project are far-reaching and long-term. The value that locally available
energy will provide to our community is immense. It will help make existing economic activities more
affordable and sustainable while promoting investment from ANCSA corporations in our economic growth.
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
The power produced will be owned and sold by the Pilot Point Utility. Maintenance and operations will be
paid for by ongoing energy sales. Annual maintenance costs are approximately $6,000-$8,000. Additional
unforeseen maintenance costs will be covered by an account funded by $.01/KWhr of wind energy sold set
aside ($3,400/yr). The savings and benefits of the new system will be reported via the Power cost
Equalization Program reports.
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.
The proposed project will increase the amount of renewable energy captured and generate d by the Pilot Point
system and allow for diesel-off operation. The system will be operated and maintained by competent local
crews and management.
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
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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)
Pilot Point successfully operates its utility, and the revenues from the BESS project will keep energy prices
stable while providing funds to pay staff.
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
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 delive rables for
each project phase. Please describe below and attach any required documentation.
The community and utility are prepared to move forward with the project as soon as f unding is available.
Contracts, permits, and work plan will be completed within 60 days of award, and final design within 90
days. The BESS will be procured as soon as possible to mobilizes shipping on one of two annual barges.
Construction is set to be complete within 12 months of award.
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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.
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.
Community Resolution is part of this proposal.
The community has been working toward funding this project for many years, and has already purchased a
ABB PCS 100 (180 kVa) power converter.
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.
AEA REF Round 2: Pilot Point wind power and heat $1,421,240 and other awards made, Pilot Point is in
compliance with.
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.
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SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below, please provide a list of additional information submitted for consideration .
- City Resolution of Suppor t
- Contractor’s Cost Quote and Resumes
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SECTION 13 – AUTHORIZED SIGNERS FORM
Community/Grantee Name: City of Pilot Point
Regular Election is held:
Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
Janice Ball Mayor
Sonny Greichen City Manager
Greg Kingsley Renewable Energy
Coordinator
I authorize the above person(s) to sign Grant Documents:
(Must be authorized by the highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Grantee Contact Information: SEE SECTION 1
Mailing Address:
Phone Number:
Fax Number:
Email Address:
Federal Tax ID #:
Please submit an updated form whenever there is a change to the above information.
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SECTION 14 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information and resumes of Applicant’s Project Manager, Project Accountant(s),
key staff, partners, consultants, and suppliers pe r 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 fo r 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 Janice Ball
Signature
Title Mayor
Date January 18, 2022