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HomeMy WebLinkAboutAEA REF Round 14 Akiachak Submission[4]Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 1 of 31 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) Akiachak Native Community Tax ID # 92-0081755 Date of last financial statement audit: Mailing Address: Physical Address: PO Box 51070 51070 Main Street Akiachak, AK 99551-1010 Akiachak, AK 99551 Telephone: Fax: Email: (907) 825-4626 (907) 825-4029 tribaladmin@akiachak.org 1.1 Applicant Point of Contact / Grants Coordinator Name: Title: Edward George Tribal Administrator Mailing Address: PO Box 51070 Akiachak, AK 99551-1010 Telephone: Fax: Email: (907) 825-2626 tribaladmin@akiachak.org 1.1.1 Applicant Signatory Authority Contact Information Name: Same as above Title: Mailing Address: Same as above Telephone: Fax: Email: 1.1.2 N/A 1.2 Applicant Minimum Requirements Please check as appropriate. If applicants do not meet the minimum requirements, the application will be rejected. 1.2.1 Applicant Type Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 2 of 31 11/16/2021 ☐ An electric utility holding a certificate of public convenience and necessity under AS 42.05 CPCN #______, or ☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1) CPCN #______, or ☐ A local government, or ☒ A governmental entity (which includes tribal councils and housing authorities) Additional minimum requirements ☒ 1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant’s board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate yes by checking the box) ☒ 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement (Section 3 of the RFA). (Indicate yes by checking the box) ☒ 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as identified in the Standard Grant Agreement template at https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy- Fund/2021-REF-Application (Any exceptions should be clearly noted and submitted with the application.) (Indicate yes by checking the box) ☒ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. (Indicate yes by checking the box) Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 3 of 31 11/16/2021 SECTION 2 – PROJECT SUMMARY 2.1 Project Title Provide a 4 to 7 word title for your project. Type in the space below. Akiachak Wind Feasibility Study 2.2 Project Location 2.2.1 Location of Project – Latitude and longitude (preferred), street address, or community name. Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s location on the map and then right clicking with the mouse and selecting “What is here? The coordinates will be displayed in the Google search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance obtaining this information, please contact AEA’s Grants Coordinator by email at grants@akenergyauthority.org or by phone at (907) 771- 3081. Latitude 60.9094° N Longitude 161.4314° W [Other description of location] The Community of Akiachak is 14 air miles from Bethel, with the villages of Tuluksak, Akiak, Kwethluk, Napaskiak, Napakiak within a radius of 16 airmiles. Bethel, Napaskiak and Kwethluk have measured wind resources demonstrated to be viable wind energy production. Specific Site Location and Description: Akiachak is located on the Kuskokwim river approximately 14 air miles from Bethel. The project proposes to erect the meter tower in an open area southwest of the community, which has relatively good exposure to winds coming from the north, and southwest. This study will determine the best potential locations for wind turbines in the community, and determine the impacts the nearby vegetation has likely affected measurement of wind from the north west, north, and north east. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Akiachak, Alaska, as well as other communities across the Yukon-Kuskokwim Delta Region and elsewhere in Alaska with potentially viable wind resources will benefit significantly from this project. 2.3 Project Type Please check as appropriate. 2.3.1 Renewable Resource Type ☒ Wind ! Biomass or Biofuels (excluding heat-only) ☐ Hydro, Including Run of River ! Hydrokinetic ☐ Geothermal, Excluding Heat Pumps ! Transmission of Renewable Energy Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 4 of 31 11/16/2021 ☒ 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 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 5 of 31 11/16/2021 2.4 Project Description Provide a brief, one-paragraph description of the proposed project. The Reconnaissance Study phase of this project will focus on collecting data and analyzing Akiachak’s current diesel system and wind and solar resources along with electric and thermal load data. These baseline data will then be used to create a conceptual design for an energy system that integrates wind/solar/battery with the current diesel system. A detailed cost estimate and financing plan will also be included in the final Reconnaissance Study Report. For the Phase II portion, we seek to investigate the economic viability of installing wind turbine generators for electrical generation facilities. AC is proposing to install a reference 50-meter meteorological tower as well as a LIDAR meterological unit to simultaneously collect and correlate wind data across the community at heights greater than or equal to 50 meters. The monitoring program will evaluate specific sites in and around Akiachak and can be easily expanded to surrounding communities through redeployment of the Lidar unit, and continued use of the Akiachak reference station. The monitoring program in Akiachak will continue for 12 months. Monthly wind resource reports will be produced with a final report summarizing the data collection, and opportunities for the application of low interia wind turbines on taller towers. 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. Reconnaissance: Tasks will be to analyze the availability of wind and solar resources; and collect and analyze electric and thermal load data; evaluate the capacities of the current energy system; create a conceptual design to integrate renewable energy (i.e., wind, solar) and technologies (i.e., battery energy storage, electric thermal stoves) into the current system; provide a proposed cost and financing report/economic analysis study; assess environmental factors (including land ownership and permitting needs); and lastly analyze the data and provide community members with the best and most complete information available to support decision making for future energy planning. Phase II: This work involves the installation of both an instrumented 50 meter wind monitoring tower and a Lidar unit. The 50 meter tower will serve as the reference station and the Lidar unit will be moved around the community to identify the most optimal sites. Together the taller met tower and the Lidar unit will be used for simultaneous correlation of wind speed, temperature and wind direction and shear data at rotor reference heights 30, 40, 50 meters and beyond. The project is designed around the installation of a traditional 50 meter met tower (with FAA paint and lighting). The mast will be instrumented at 20, 30 and 50 meters. The wind resource met tower measurements will be correlated to a 3D scanning lidar unit to provide a vertical wind profile excess of 80 meters. The Met Tower will serve as reference base station, and Lidar unit will be deployed at different locations across the community and to nearby communities to validate higher level wind speed measurements. The lidar unit can be redeployed every 3 months to prospect for efforts to improve and test local wind conditions. The base met tower data and lidar data will be correlated for direction, speed and shear. In summary, this work includes installation and instrumentation of a meteorological tower; collection and analysis of resource and load data; examination of potential development sites; identification of system configuration options; analysis of potential operational and financial impacts; development of initial site plan; identification of permitting requirements; and development of project cost estimates. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 6 of 31 11/16/2021 The primary deliverables will be: Resource Assessments, Final Conceptual Design, and a proposed costs and financing report. 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 ($) 4 Akiachak Wind Feasibility & Conceptual Design (Note: The earlier funded project was for a very different scope and technology, as described in the provided cost estimates and summaries below.) Y $110,000 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 7 of 31 11/16/2021 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. The following schedule outlines milestones associated with project Phase I: Reconnaissance Study. Task # Milestones Tasks Start Date End Date Deliverables 1 Preliminary report and work plan Collect studies and mechanical electrical drawings related to existing base system Identify site condition, community information Research and writing to develop a project plan and site description. Within 1 month of start Within 3 months of start Base systems, as-builts and energy studies Base System Design Documentation Binder Draft Conceptual Design 2 On-site data collection Travel to site with team to verify site conditions Confirm as-built drawings and survey electrical distribution, select site Data collection plus travel to Akiachak from Anchorage with a project team consisting of an electrical engineer, diesel mechanic, project manager and research assistant Within 1 month of start Within 3 months of start Condition report System condition report Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 8 of 31 11/16/2021 3 Install monitoring equipment Field support including installation of a 34-meter met tower, data logger and sensor. This includes purchasing and installing the met tower, data logger, and sensors for wind speed, direction, solar insolation, and temperature with 12 months of data collection and a resource report. This task is estimated to require 10 days of equipment procurement, mobilization, installation, and demobilization. Data gateway for load information at power plant Map of electrical distribution Within 1 month of start Within 6 months of start Installation report on monitoring equipment Load profile Distribution map 4 Options Analysis and Cost Estimates Field support including documentation, remote troubleshooting and diagnostics, training activities, assistance with maintenance, assistance with data collection and evaluation, and availability to attend workshops and tutorials. Technology survey of proposed wind, solar and battery systems Options Analysis Within 3 months of start 12-18 months from start Draft and final operating manuals Identify potential system components, and collection of design, installation, support and documentation HOMER and PV Watts analysis 5 Feasibility and Conceptual Design Report Compile and write resource assessments Compile and write final conceptual design Compile and write projected costs/financing Within 6 months of start 18 months from start Resource Assessments Final Conceptual Design Projected Costs/Financing The following schedule outlines milestones associated with project Phase II: Feasibility and Conceptual Design. Milestone Task Deliverables Projected Completion Date Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 9 of 31 11/16/2021 1 Site characterization Preliminary report 3 months from start 2 Plan base system design and instrumentation procurement Onsite assessment report 3 months from start 3 Installation of monitoring equipment Monitoring system report 6 months from project start 4 Data collection and analysis Options analysis report 12 to 18 months from project start 5 Wind Resource Modeling and site report Final design report 18 months from project start This scope of work includes: · Permitting Installation and instrumentation of a meterological tower · Equipment rental · Location of Wind Cube trailer · Establish cell communication and data collection · Daily downloading of data · Resource analysis of resource · Monthly data comparison and performance estimates · Potentially 3 relocations of Lidar unit potential development sites · 4 quarterly reports. · Final report · Removal of tower and equipment Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 10 of 31 11/16/2021 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 $ 371,000 Cash match to be provideda $- In-kind match to be provideda $- Energy efficiency match providedb $- Total costs for project phase(s) covered in application (sum of above) $371,000 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. We are unable to contribute direct match funding at this time. However, we recently were awarded a USDA High Energy Costs Grant in the amount of $2,265,809 for the installation and integration of solar PV, addition of battery storage, and energy efficiency upgrades to 9 community buildings. This project represents a substantive and significant, de facto match that will greatly aid the project being proposed. The notification of that award came too close to the date that this AEA REF application was due to allow sufficient time for our community leaders to quantify and approve the amount the awarded grant represents in match, but it is our hope that AEA will take these contributions into account when assessing the cost/benefit ratio of the proposed project. Verification and documentation of the USDA award are provided in attachments. 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. 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 $ 91,000 Feasibility and Conceptual Design Estimated $280,000 Final Design and Permitting [Actual/Estimated] $ -- Construction [Actual/Estimated] $ -- Total Project Costs (sum of above) Estimated $ 371,000 Metering/Tracking Equipment [not included in project cost] Estimated $ -- 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 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 11 of 31 11/16/2021 ● 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) This information is part of the Reconnaissance Study final report. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 12 of 31 11/16/2021 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 1—Reconnaissance 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 ) $ $ $ 1 Preliminary report and work plan Within 3 months of start $6,000 - $6,000 2 On-site data collection Within 3 months of start $8,000 - $8,000 3 Install monitoring equipment Within 6 months of start $45,000 - $45,000 4 Options Analysis and Cost Estimates 12-18 months from start $7,000 - $7,000 5 Feasibility and Conceptual Design Report 18 months from start $26,000 - $26,000 TOTALS $91,000 - $91,000 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $91,000 $ $91,000 Construction Services $ $ $ Other $ $ $ TOTALS $91,000 $ $91,000 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 13 of 31 11/16/2021 Phase II Budget IES offers to supply and install a fully functional wind monitoring tower with new, calibrated anemometers, as well as Wind Cube Lidar unit. The unit will be equipped with an I-Pack for daily downloading of wind data. The equipment will be leased for 18 months Task 1 Total $144,000 Task 2 - Install equipment in Akiachak Equipment will be installed in Akiachak on a fixed price basis. The installation will consist of the following tasks: · Install anchors · Assemble and erect towers · Program loggers · Activate cellular loggers · Prepare site installation report Assumptions: · Sites are level and cleared and are accessible by skid steer and trailer · Equipment will be delivered to Akiachak by barge. · Ground is assumed to appropriate for the use of screw anchors, embedment with up to two anchors per guy and 4 per tower base. Tower base will require a ballasted foundation frame. · FAA permitting requires painting of tower and the installation of navigation lights, which will require have been ordered. Tower Installation $ 41,000 Task 2 Total $ 41,000 Task 3 - Monitor equipment, perform QC on data and submit monthly report $2000/ month/site/12 months Additional Equipment needed Cell phone/ ISP - $160/month 3 redeployments of Lidar Task 3 Total $ 39,000 Task 4 - Prepare final report Task 4 Total $ 24,000 Task 5 – Remove equipment Equipment will be removed from Akiachak; estimated early October 2024. Tower Removal Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 14 of 31 11/16/2021 Task 5 Total $32,000 Cost Summary – IES Wind Resource Assessment Milestone FY 2022/24 Total 1 Lease equipment to Project Q1 2023 $ 144,000 2 Install Tower Q3 2023 $ 41,000 3 Data management and Lidar redeployment Q3-2023 thru Q3-2024 $ 39,000 4 Prepare Final Report Q4 2024 $ 24,000 5 Remove Tower Q3-Q4 2024 $ 32,000 Total $ 280,000 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. Detailed cost justifications and project quotes are provided in attachments. The quotes are from an experienced consultant/contractor well versed in the constraints of rural energy construction projects. 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? Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 15 of 31 11/16/2021 Project will be monitored and reported as required by AEA. Akiachak will require reports from contractor and will provide these and Akiachak oversight reports to AEA. All grant funds will be expended on costs directly related to the performance of the scope of work and administration and reporting of grant activities. 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. Quotes for project services are attached. Akiachak is confident that the quoted amount for these services is reasonable. Work will be completed by a highly experienced Alaskan firm very familiar with AEA grant reporting requirements. Only contractual costs will be requested from the REF Grant Program. Operating under DUNS: 152196598 / EIN: 92-0081755 the Akiachak Native Community is capable and prepared to enter into an agreement with the State Government. Previous state funding awards have been managed to successful completion through in-house or subcontracted services. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 16 of 31 11/16/2021 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. Dennis Meiners (Lead Project Manager), Principal and Founder of Intelligent Energy Systems, LLC (IES). This project will benefit from Dennis’s many years of experience, and his support team and network of energy and technology specialists. IES will coordinate reconnaissance and engineering activities, drawing on experience with similar projects and the abilities of several experts in the field of wind-diesel-battery systems. IES intends to establish the same level of ongoing commitment to Akiachak as it has to other remote, rural communities in Alaska. 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. Pati Crofut (Grants Manager) is a highly experienced rural utility accounting consultant and trainer. She has been solely responsible for the grant accounting and financial management on numerous USDA High Energy Cost grants awarded to villages in Western Alaska and administered through IES. She is familiar with all reporting requirements for the REF program. 4.1.3 Expertise and Resources Describe the project team including the applicant, partners, and contractors. For each member of the project team, indicate: ● the milestones/tasks in 3.1 they will be responsible for; ● the knowledge, skills, and experience that will be used to successfully deliver the tasks; ● how time and other resource conflicts will be managed to successfully complete the task. If contractors have not been selected to complete the work, provide reviewers with sufficient detail to understand the applicant’s capacity to successfully select contractors and manage complex contracts. The following are the senior team members for this project. Each person listed is considered an expert in their respective specialties. Responsibilities span all milestones and tasks for both proposed projects. Key Personnel Lead local contact and organizer for this project is Edward George, Tribal Administrator. Mr. George has extensive experience coordinating projects of this type and is familiar with all required capacities for our Tribe administration, including managing dozens of employees and overseeing all financial aspects for the Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 17 of 31 11/16/2021 organization. His attached resume and letter provide further details on the experience and expertise Mr. George brings to this role. The following contracted individuals and organizations will be the primary technical support for this project. Intelligent Energy Systems, LLC Dennis Meiners (Lead Project Manager), Principal and Founder of Intelligent Energy Systems, LLC (IES). Mr. Meiners will draw on his many years of experience, to manage the overall project and the project support team, which includes wind technology specialists. IES will be responsible for the installation and operation of the resource evaluation and equipment deployment. Mr. Meiners will draw upon many years of Alaskan operating experience with similar projects. Through Mr. Meiners, IES has demonstrated an on-going commitment to improving the energy independence of rural Alaskan communities. Pati Crofut (Grants Manager), Highly experienced rural utility accounting consultant and trainer. She has been solely responsible for the grant accounting and financial management on numerous USDA High Energy Cost grants awarded to villages in Western Alaska and administered through IES. Dale Letourneau (Electrical Engineer), Specializing in remote, independent energy generation and both off- grid and grid connected power systems. Mr. Letourneau, has more than 40 years of experience in design, construction and operation of energy systems. Mr. Letourneau’s practical engineering approaches originate from his formative years before and during university working with his family’s electrical supply and contracting business. Jean-Paul Pinard, PhD, P.Eng. (Consulting Engineer), 27 years of experience in the energy sector as an engineer, scientist, lecturer, and advocate on renewable energy. Specializes in wind resource assessments in Arctic and complex terrain. Jean-Paul is the leading wind resource expert in Northern Canada. His PhD is in cold weather modeling of wind resources. Mr. Pinard has conducted over 50 detailed wind resource assessments in nearly every community in Yukon and Northwest Territories. He will be the principal investigator responsible to installation, set-up and maintenance of the instrumentation. conducting energy modelling and data analysis. Extensive work with Indigenous communities to empower their renewable energy economies. Mr. Pinard will be responsible for tower placement, equipment installation and calibration, as well as data analysis, data quality, and site evaluation. Carl Brothers, P.E., (Power Integration and Wind Energy Specialist) President of Frontier Power Systems. Mr. Brothers is the former director of the Atlantic Wind Test Site, Canada’s premier wind energy test facility. He has been responsible for the development of over 100 MW of large scale grid connected wind systems and is familiar with the full range of wind technologies. Mr. Brothers has evaluated the performance of over 20 wind turbines, and is responsible for some of the most successful community scale and off grid wind diesel systems in Eastern Canada. Mr. Brothers has been responsible for design improvements to mid- sized wind turbines, and is familiar with cost, deployment, installation and integration issues. He is involved with the growth of high penetration wind diesel systems across the Arctic. Mr. Brothers will assist with equipment and site selection, evaluation of data and comparison with similar projects in other parts of the Arctic and Alaska. Mr. Brothers will assist with program design and site selection. Greg Egan (Field Support Specialist), President of Remote Power, Inc. in Fairbanks has over 30 years of experience in remote power systems, data collection and telemetry integration, drawings, maintenance plans and specifications, and in renewable energy system feasibility studies. Greg is a journeyman electrician, and expert at small system remote power supplies for communications equipment across Alaska. He will responsible for the Lidar power supply design. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 18 of 31 11/16/2021 Ian Knapp Research Technical Specialist, Graduate in statistics with a focus on technical analysis with a strong desire to contribute to the future of Alaska while becoming a more being a more skilled and knowledgeable statistician. Adam Schandler, PEng (Mechanical ), Mr. Schandler has 10 years of mechanical engineering expertise specifically related to the data collection, analysis, modeling, monitoring and design of wind power plants. He has expertise in data analysis, sensor calibration, wind resource assessment, tower placement, Wind Farmer, Windographer, and WASp models. Mr Schandler and Mr. Pinard together will be responsible for Wind Atlas Analysis and Applications Program (WAsP) modeling, data quality, and interpretation. 4.2 Local Workforce Describe how the project will use local labor or train a local labor workforce. Project personnel will interact with the local utility manager and operators to understand how Akiachak’s power plant functions and to collect accurate information/data. However, there are no plans to hire local individuals for this Reconnaissance Study. Local forces will be used to the greatest extent possible for all field and utility work required for Phase II. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 19 of 31 11/16/2021 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. A prior wind resource assessment was conducted for the Community of Akiachak in (2007). There are several factors which indicate that the community and the surrounding communities could benefit from a re- evaluation of the wind resource in this area. This project is responsive to both a local and regional need to develop renewable resources as well as evaluate the potential for expanding the harvesting wind energy across the state. This study is especially relevant in light of advances in wind technology, which have demonstrated the viability of the economic application of large rotor diameter wind turbines on taller towers. First, the wind resource assessment was conducted using a 30 meter tower in a wooded area. That early study indicated that wind resource was marginal and at the time less than what is needed for the economic deployment of wind power. However, the community is located 14 air miles from Bethel, in similar terrain and topography, where there is a definite commercial wind resource. Extrapolating the wind resource from earlier studies to higher levels, say 50 to 60 meters, estimated to be significantly improved beyond 5.5 m/sec. The re-evaluation of the resource, is proposed for the following important reasons: 1. Wind technology, specifically low wind speed, wind technology has and continues to improve. The 100 kW wind turbines recently installed in Atmautluak, and at the Kwethluk project which is under construction, are installed on 40 and 50 meter meter tilt-up towers respectively. These turbines are equipped with low inertia, high efficiency 24 meter rotors are able to harvest wind energy across a broad spectrum of lower average wind speeds. Technical developments are underway from several companies to increase this and other 100 kW machine’s rotor diameter to 30 meters. These advances are designed to improve turbine capacity factors in low wind speed regimes, ( 4.0 m/s measured at 30 meters) in the 30% range. This resource is previously characterized in the earlier study by Vaught. Additionally, much development is underway which scales these platform to the 40 meter rotor and 250 kW range. Technical improvements in rotor efficiency, increased rotor diameter combined with taller guyed towers are making the use of wind power, in communities, like Akiachak, and surrounding communities like Akiak and Tulusak, with more moderate wind resources, potentially economically viable. 2. The communities of Akiachak, as well the surrounding communities of Akiak and Tuluksak, have few renewable energy opportunities, beyond wind and solar. Solar is unlikely to provide sufficient energy to meet the majority of the community’s needs throughout the year, or represent significant potential for large scale fuel displacement. The fact that these communities are so close to other communities with a viable wind resource, ( Kwethluk, Bethel and Napaskiak). It is proposed that the potential for wind resource at or above the 50 meter height is indicated, with consideration that there may be detrimental influences on the previous study from local terrain, tower height and tower placement. The fact these communities are so is so close to other communities with a viable wind resource merits further investigation. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 20 of 31 11/16/2021 3. This study proposes to install and instrument a 50 meter meterological tower, in Akiachak. This tower will be installed with navigational lighting, and used as subregional reference tower. A Lidar unit will be placed in various locations around the community to collect simulatenous data, and compare the wind potential at various heights and locations around the community. The study area could easily be expanded to other nearby communities, through redeployment of the Lidar unit. This method would benefit multiple communities, and more accurately define the actionable wind resources. Please note: HOMER data are provided in the attachments. 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. Due to our remote location and isolation, there are few options to heat homes in Akiachak, and what options do exist are inevitably expensive and logistically challenging. Residents in Akiachak currently use diesel generation and firewood to heat their homes. Heating fuel costs over $5.00 per gallon, and an average household uses approximately 55 gallons every 3 weeks. Firewood is similarly costly at $350 for ½ cord and inconvenient to harvest. The high cost of heat is a significant burden for residents, whose average earnings according to the 2019 ACS 5-Year Survey are $18,906 annually. Most households qualify for and 24-35% are enrolled in the federal Low Income Home Energy Assistance Program (LIHEAP). Many households in Akiachak are multiple generations living together, and it is not uncommon to have eight or more people living together in one home. According to the State of Alaska Energy Authority’s 2020 Power Cost Equalization Report, the average cost of electricity per kWh in Akiachak was $0.63. This is almost 500% of the national average and more than three times the benchmark delineating “high energy cost communities” set forth by AEA REF regulations. For these reasons, AC has a long history of pursuing ways to lower the cost of energy through integration of renewable resources, and recently these efforts have been rewarded in the form of project funding from the USDA High Energy Costs Grant program. Less than one week before this current grant application was due (i.e., mid-January 2022), AC learned that the community has been awarded $2,265,809 to install and integrate 200 kW solar PV along with a battery energy storage system as well as complete energy efficiency upgrades on community facilities (“HGECG” RD-RUS-HECG21CFDA Number: 10.859). That project will provide a significant contribution toward our energy needs and aid our resiliency; however, the savings anticipated to result from that project are no comparison for the potential benefit of wind energy in our community and other communities facing similar energy challenges across Alaska. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 21 of 31 11/16/2021 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 Part of the purpose of the Reconnaissance Study is to identify permitting requirements/needs. 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. Akiachak Native Community is the only local government in Akiachak and as such we are responsible for the betterment and safety of our community members. he project will be owned by the Tribe and operated by Akiachak, Ltd. our ANCSA village corporation, which owns the Akiachak Native Community Electric Company (ANEC). ANEC is the only utility/power producer in Akiachak, Alaska. ANEC holds the certificate of public convenience issued by the State of Alaska. Regarding the suitability of the project site for the proposed feasibility study, the WAsP model and Wind Farmer are two most widely used wind power analysis software models in the world. These models use met tower wind data (or wind atlas) reference data placed on a digital elevation base map. The model assigns a wind turbine location, and uses the published wind turbine power curves to perform annual energy production calculations. WAsP uses available data to determine terrain effects on the wind resource. The modeling software has a number of limitations especially when evaluating surface roughness, obstacles and increases and decreasing in wind velocity at specific heights due to changing terrain features and obstacles, such as buildings, trees, hills, etc. The model outputs incorporate the assumption the overall wind regime of the turbine site is same as the met tower reference site, and that prevailing weather conditions are stable over time, and surrounding terrain at the wind data reference point and turbine sites is sufficiently gentle and smooth to ensure laminar, attached wind flow. In terrain like Akiachak, it is likely that both a lower level 30 meter wind resource evaluation and a simplified WAsP model without a detailed roughness map can result in moderate resource error. This error becomes significant when projecting wind speed from the brushy terrain where the met tower had been located to taller towers with larger rotors where wind shear and roughness length would be much less. But, the purpose here is to illustrate possible site options should alternate sites be considered. Two such alternate sites are the more exposed brushy west of town and locations closer to the river. These two locations are primary sites for redeployment of the Lidar unit for more accurate higher elevation resource assessments. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 22 of 31 11/16/2021 What is learned from this level of study will be valuable for establishing the wind potential of many villages across Alaska. 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. Technical risks are low (installing the 50-meter met tower, data logger and sensor). This will likely be weather/wind dependent and we may need to have an extra dose of patience if there is a storm when these tasks are due to be conducted. 5.3.2 N/A 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. Part of the Reconnaissance Study is to detail the existing energy system. 5.4.2 N/A 5.4.2.1 N/A 5.4.2.2 Existing Distribution System Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 23 of 31 11/16/2021 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. Part of the purpose of the Reconnaissance Study is to detail the existing energy system. 5.4.2.3 N/A 5.4.2.4 N/A 5.4.2.5 N/A 5.4.2.6 N/A 5.4.3 Future Trends Describe the anticipated energy demand in the community, or whatever will be affected by the project, over the life of the project. Explain how the forecast was developed and provide year by year forecasts. As appropriate, include expected changes to energy demand, peak load, seasonal variations, etc. that will affect the project. Part of the purpose of the Reconnaissance Study is to identify potential future trends and impacts on a future energy system. 5.4.4 N/A 5.4.4.1 N/A 5.4.4.2 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. Part of the purpose of the Reconnaissance Study is to identify basic operation of the proposed energy system. For Phase II of this project, the study proposes to use a combination of reference met tower (50 meter) plus a WindCube® type of LIDAR unit to correlate time series vertical profiling to accurately and more rapidly and rigorously validate the wind resource in Akiachak. While the reference tower is fixed, the Lidar unity can be easily be relocated on a period basis to prospect for the most productive location in the community. Once Akiachak has been accurately characterized, the Lidar unit can be cost-effectively deployed to other locations, and other communities as a replacement for met masts. The Lidar data can be used to accurately define the resources, reduce deployment and improve decision-making. This region has limited renewable resources. This level of study would be of great value to surrounding communities, both upriver and downriver. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 24 of 31 11/16/2021 Wind Monitoring Equipment The wind monitoring equipment consists of a guyed 50m tubular steel mast. Anemometers are mounted at the 30, 40, and 50 meter levels. Direction vanes are mounted at the 40 and 50m levels. A data logger and temperature sensor are mounted at 2m. The data logger is equipped with a cellula r data transmission device which transmits recorded data to an email account on a daily basis. The configuration and type of instrumentation will include site photos, vegetation heights and types, GPS, location, elevation, and sensor descriptions, orientations, logger type, collection channels and installation and placement details. A LIDAR Unit: WindCube® type or equivalent, will be mounted on a small trailer with an accompanying power supply. Both the NRG data logger cell modem. The Lidar unit will initially be deployed adjacent to the met tower, and then redeployed to other locations across the community. Please see attached cost justification proposals from contractor IES for more complete information. 5.4.3.1 N/A 5.4.5.2 N/A 5.4.5.3 N/A 5.4.6 N/A 5.4.7 N/A 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. Reconnaissance Study will provide recommendations for metering equipment. 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 Reconnaissance Study will provide recommendations for metering equipment. SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 25 of 31 11/16/2021 6.1 Economic Feasibility 6.1.1 Economic Benefit An accurate understanding of the wind resource at higher elevations is necessary for determining wind system viability. The data analysis will enable accurate evaluation of resource potential and choices optimized around parameters of interest such as, turbine production compared to local and regional reference sites, These options will be compared to the diesel operational base lines, and evaluated with respect to the community’s goals. The turbines to be included in the evaluation include: · Frontier, 24.4, and 30 · EWT 54, 61 The final report will include an estimate of expected annual energy production from these turbines at various locations and configurations as potential renewable energy sources for the community. The report will also include an initial construction cost estimate for the most productive options. The outcome of this project will provide a basis for determining the economic viability of wind energy for this and other similarly situated communities in the Yukon and Kuskokwim regions. 6.1.2 Economic Benefit Explain the economic benefits of your project. Include direct cost savings and other economic benefits, and how the people of Alaska will benefit from the project. Note that additional revenue sources (such as tax credits or green tags) to pay for operations and/or financing, will not be included as economic benefits of the project. Where appropriate, describe the anticipated energy cost in the community, or whatever will be affected by the project, over the life of the project. Explain how the forecast was developed and provide year-by-year forecasts The economic model used by AEA is available at https://www.akenergyauthority.org/What-We- Do/Grants-Loans/Renewable-Energy-Fund/2021-REF-Application. This economic model may be used by applicants but is not required. The final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. If used, please submit the model with the application. Reconnaissance Study will identify and elaborate on potential economic benefits of renewable energy implementation. Feasibility study will provide accurate and reliable estimates of true wind potential that hasn’t been able to be captured in past studies. 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 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 26 of 31 11/16/2021 ● 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 Reconnaissance Study will provide insights about Economic Risks. 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. These projects do not benefit any private sector businesses. All benefits will be captured by the Akiachak community and other communities with wind resources across Alaska. These benefits will go a long way toward helping to lower the high energy costs experienced in our community. 6.2 Other Public Benefit Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the purpose of evaluating this criterion, public benefits are those benefits that would be considered unique to a given project and not generic to any renewable resource. For example, decreased greenhouse gas emission, stable pricing of fuel source, won’t be considered under this category. Some examples of other public benefits include: ● The project will result in developing infrastructure (roads, trails, pipes, power lines, etc.) that can be used for other purposes ● The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.) ● The project will solve other problems for the community (waste disposal, food security, etc.) ● The project will generate useful information that could be used by the public in other parts of the state ● The project will promote or sustain long-term commercial economic development for the community Reconnaissance Study will address Other Public Benefits. The wind resource assessment is a crucial factor in wind energy development. Legacy technologies, and legacy studies which employed 20 to 30 meter met masts, have shown limitations with today’s improved turbines, especially projects. This study proposes to use a combination of reference met tower (50 meter) plus a WindCube® type of LIDAR unit to correlate time series vertical profiling to accurately and more rapidly and rigorously validate the wind resource in Akiachak. While the reference tower is fixed, the Lidar unity can be easily be relocated on a period basis to prospect for the most productive location in the community. Once Akiachak has been accurately characterized, the Lidar unit can be cost-effectively deployed to other locations, and other communities as a replacement for met masts. The Lidar data can be used to accurately define the resources, Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 27 of 31 11/16/2021 reduce deployment and improve decision-making. This region has limited renewable resources. This level of study would be of great value to surrounding communities, both upriver and down river. The study area could easily be expanded to other nearby communities, through redeployment of the Lidar unit. This method would benefit multiple communities, and more accurately define the actionable wind resources. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 28 of 31 11/16/2021 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 Reconnaissance Study will address Sustainability and Finances. 7.1.2 N/A 7.1.2.1 N/A 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. Reconnaissance Study will address Power Purchase/Sale options, but all benefits will be retained by the public. No private entities or businesses are involved in these projects. SECTION 8 – PROJECT READINESS 8.1 Project Preparation Describe what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Specifically address your progress towards or readiness to begin, at a minimum, the following: ● The phase(s) that must be completed prior to beginning the phase(s) proposed in this application ● The phase(s) proposed in this application ● Obtaining all necessary permits ● Securing land access and use for the project ● Procuring all necessary equipment and materials Refer to the RFA and/or the pre-requisite checklists for the required activities and deliverables for each project phase. Please describe below and attach any required documentation. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 29 of 31 11/16/2021 We have sought a quote for this work from a highly experienced team. The quote provides good and sufficient details including tasks and milestones for this Reconnaissance Study, and a pathway forward for this work to be conducted within a reasonable timeframe. 8.2 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. Local support is verified as this application is being submitted by the federally recognized Native American Tribal Government in Akiachak. SECTION 10 – COMPLIANCE WITH OTHER AWARDS Identify other grants that may have been previously awarded to the Applicant by AEA for this or any other project. Describe the degree you have been able to meet the requirements of previous grants including project deadlines, reporting, and information requests. N/A SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES In the space below, please provide a list of additional documents attached to support completion of prior phases. N/A SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below, please provide a list of additional information submitted for consideration. Quote from experienced contractor/consultant submitted in separate document. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 30 of 31 11/16/2021 SECTION 13 – AUTHORIZED SIGNERS FORM Community/Grantee Name: Akiachak Native Community Regular Election is held: Date: Authorized Grant Signer(s): Printed Name Title Term Signature I authorize the above person(s) to sign Grant Documents: (Must be authorized by the highest ranking organization/community/municipal official) Printed Name Title Term Signature Grantee Contact Information: Mailing Address: PO Box 51070 Akiachak, AK 99551 Phone Number: (907) 825-4626 Fax Number: Email Address: tribaladmin@akiachak.org Federal Tax ID #: 92-0081755 Please submit an updated form whenever there is a change to the above information. l I I I AKIACHAK LTD & SUBSIDIARIES P.0. BOX 51010 Akiachak, AK 99551-1010 (907)825-4328 akiachakltd@hotmail.com generalmanager@akiachuk.com A Resolution supporting the application of the Akiachak Native Community (ANC) for financial assistance to the Alaska Energy Authority Renewable Energy Fund-Round 14 for a wind feasibility study. The purpose of ANC's application is two-fold -to assist our com!T'unity to advance our efforts to develop renewable energy resources and to serve as the grantee and grant administrator for this effort. WHEREAS, the funds for the proposed study are to document the available wind resource and assess its potential for renewable energy technology deployment. WHEREAS, wind energy technology can reduce our dependence on fossil fuels, provide cost savings and local jobs, and help mitigate the impact of climate change. WHEREAS, the Akiachak Native Community is a federally recognized Tribal entity in the State of Alaska, and is the governing body for the community of Akiachak; and WHEREAS, Akiachak Ltd & Subsidiaries is the owner of Akiachak Native Community Electric Company our certified electric utility that provides services to our community; and WHEREAS, Akiachak Ltd & Subsidiaries works closely with the Akiachak Native Community; and WHEREAS, the Alaska Energy Authority Renewable Energy Fund is seeking applications for eligible renewable energy projects through the Renewable Energy Fund-Round 14 to produce cost-effective renewable energy for heat and power to benefit Alaskans statewide; and WHEREAS, Akiachak Native Community and its utility desire to pursue renewable energy to lower cost of diesel purchases to our community; and WHEREAS, the Akiachak Native Community is experienced in grant administration, and will coordinate closely with Akiachak Ltd. & Subsidiaries, is requesting funding from the Alaska Energy Authority Renewable Energy Fund to conduct a wind feasibility study to document the available wind resource. NOW THEREFORE BE IT RESOLVED the Akiachak Ltd. & Subsidiaries supports Akiachak Native Community (ANC) and supports its application to the Renewable Energy Fund-Round 14 and recognizes Mr. Edward George, tribal administrator for ANC to represent us as an applicant for our community's efforts to apply for, secure, and obtain funding to investment in renewable resource development. FURTHER RESOLVED THAT Akiachak Ltd. & Subsidiaries commits to provide the matching resources for the project at the match amounts indicated in the application. CERTIFICATION. The following resolution was passed and approved by a duly convened meeting of the Akiachak Ltd. & Subsidiaries board of directors. This day of __5th__ 2022 by a vote of _5_ YES, _0_ No, and _0_ ABSTAINING. Date: I -s -z_, c> BE IT FURTHER RESOLVED THAT the Akiachak Native Community is in good standing with respect to its existing credit and federal tax obligations. FURTHER RESOLVED THAT Akiachak Native Community commits to provide the matching resources for the project at the match amounts indicated in the application. FURTHER RESOLVED THAT Akiachak Native Community authorizes those individual(s) signing the application has the authority to commit Akiachak Native Community to the obligations under the grant. CERTIFICATION. The following resolution was passed and approved by a duly convened meeting of the Akiachak Native Community tribal council. This day of __5th__ 2022 by a vote of _5_ YES, _0_ No, and _0_ ABSTAINING. Signed: /�,��c7 Printed: &r·��v�&t , ""'-, Title: ���4� Attest: ��(� Date: Date: /r tYf· 2Le /,_5,...z_z_ - . The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 1 Intelligent Energy Systems, LLC 110 W. 15th Avenue, Suite A • Anchorage, AK 99501 (907) 770-6367 • iesconnect.net • (907) 677-1886 Fax Akiachak Power Company Cost Quotation for Reconnaissance Study, and Conceptual Design for Wind+Solar+Battery+Diesel Power System The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 2 Contents 1.0 Project Overview .............................................................................................................................. 3 2.0 Cost Quotation .................................................................................................................................. 9 3.0 Project Timeline and Schedule ....................................................................................................... 11 4.0 Project Team ................................................................................................................................... 13 Tables Table 1: Milestone #1- Preliminary Report and Work Plan………………………………….……...9 Table 2: Milestone #2 On-site Data Collection………………………………………….………….10 Table 3: Milestone #3 - Installation of Monitoring Equipment……………………………………10 Table 4: Milestone #4 - Options Analysis and Cost Estimates……………………………………11 Table 5: Milestone #5 - Feasibility and Conceptual Design Report……………………………...11 The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 3 1.0 Project Overview The purpose of this cost quotation is to provide Akiachak with a task list and associated cost to provide a Reconnaissance Study, defined by AEA Renewable Energy Fund as a preliminary, “desktop” study designed to ascertain whether additional study is warranted. IES’ proposed Reconnaissance Study focuses on collecting and analyzing Akiachak’s current diesel system and its wind and solar resources along with its electric and thermal load data. This baseline data will then be used to create a conceptual design for an energy system that incorporates wind/solar/battery with the current diesel system. A proposed cost and financing scheme will also be included in the final Reconnaissance Study Report. This quote consists of tasks to: • Collect and analyze wind, solar, and electric and thermal load data • Assess current energy system • Create a conceptual energy system integrating renewables with the current system • Provide a proposed cost and financing report/economic analysis study • Identify environmental items, including land ownership and permitting needs, and lastly • Analyze the data and make recommendations to the community This work includes: • Installation and instrumentation of a meterological tower • Collection and analysis of resource and load data • Examination of potential development sites • System configuration options • Analyzing potential operational and financial impacts • Developing initial site plans • Identifying permitting requirements, and developing project cost estimates The primary deliverables will be: • Resource Assessments • Final Conceptual Design • Proposed Costs and Financing The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 4 Proposed Scope of Work - in 5 Phases This scope of work will involve five phases, or project milestones. These milestone-phases are: 1. Preliminary report and work plan 2. On-site data collection 3. Installation of monitoring equipment 4. Options analysis and cost estimates 5. Conceptual design report 1) Preliminary report and work plan The first phase of the project will involve collecting existing community and resource data, as well as a review of previous studies. This phase of work will include identif ying potential development sites for wind and solar , population community history, existing facilities, local economy, climate and community infrastructure . The purpose of this work is to improve the efficiency of the study and to incorporate previous information identified to improve the conceptual design. 2) On-site data collection The second phase of the project will involve collection of on-site data. This will involve community electrical and thermal load, and existing asset condition surveys. In every community the load tends to vary in more or less a regular way, over the course of the day, week, and season. As well as the gradual cha nges, there are also fluctuations of much shorter duration caused by switching in and out of large electrical loads. There are also likely to be substantial changes in the load with the day of the week, or season of the year. From an economic point of view it is necessary to understand the profiles of the load, and to understand how variations in wind and solar potential corresponds to the load , or if there is a substantial mismatch. Initial information indicates that incorporating a wind-to-heat component, in a wind+solar+battery+diesel system will enable the community to take full advantage of the greatest amount of wind energy potential. This is important, especially for application of larger capacity wind systems, which during the winter can generate surplus energy that can then be used to displace heating fuel. These kinds of systems, which are designed for lower wind resource applications, can match well with battery energy storage. In a similar manner, during the summer months when wind speeds tend to be lower, the wind+battery system would be supplemented by solar PV. The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 5 On-site data will be collected to determine energy load profiles, assessing the condition of electrical generation, and distribution readiness to incorporate renewables into the existing power system. The principle outcome will be to develop coincident load profile, and will involve power plant monitoring. This phase will also include investigatin g existing geotechnical information through the use of a “desk study” to guide foundation design concepts for wind and solar systems. In addition, initial consultations with permitting agencies and equipment inventories. 3) Installation of Monitoring Equipment This phase will involve install ing a 34 meter tall, NRG Systems, tubular-type meteorological (met) tower in an open area selected by the City. The monitoring equipment will be instrumented to measure wind speed, direction, temperature, solar insolation and electrical load. At the same time, monitoring of electrical production in the power plant will begin. The renewable resource data will be analyzed by Doug Vaught, of V3 energy an experienced resource assessment engineer. The load profile will be developed from monitoring data, and summarized in a report by IES. Primary outcome of this phase will be a report that assesses and validates the wind resource, along with the solar resource. This data will be used to estimate annual energy production from various wind and solar configurations. The studies in Akiachak will focus on the application of large rotor wind turbines, designed for productivity in lower wind speed regimes, to be supplemented by solar and battery storage capabilities, which all serve to reduce the community’s dependency on diesel fuel. 4) Options Analysis and Cost Estimates The wind, solar and electrical and thermal load data will be compared with wind turbine power, and diesel generation fuel curves to develop time series estimates of wind, solar, diesel and battery fuel displacement scenarios using th e HOMER program. The analysis will include a review of available and practical wind systems, potential solar arrays, and battery energy storage systems. Both PV watts, and HOMER w ill be used to estimate energy produced from various size fixed solar arrays. HOMER analysis will be used to compare system configuration s in relative rather than absolute terms, with the understanding that renewable resources vary considerably from year to year. HOMER output will enable design choices optimized around The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 6 parameters of interest such as, renewable contribution, potential for fuel displacement, diesel off hours of operation, and surplus renewable energy available for heat. These options will be compared to the diesel operational base line, and evaluated with respect to the community’s goals. The turbines to be included in the evaluation include but are not limited to: • EoCycle 25, • Northwind 100, 21 and 24 • Xant 21 and 24 • Frontier, 24.4, and 30 • Vestas V-27 • EWT 61 Construction cost estimates will be developed for the most productive options. This will include capital, installed, and operational cost estimates. The overall costs will include, power line, additional infrastructure and integration costs. 5) Conceptual System Design Report The following information for the proposed renewable energy system will be developed: • Wind and solar resource assessment • Technology options analysis • Proposed system configurations • Estimated annual energy production from renewable generation • Project cost estimates • Economic feasibility based on diesel base case • Methods of integration • Site Plan • Geo technical desk study • System readiness Summary of conceptual development and operations plan The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 7 Permits • List of applicable permits • Anticipated permitting timeline • Identify and discussion of potential barriers Environmental The following environmental and land use issues will be addressed: • 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 discuss other potential barriers Proposed New System Costs and Benefits Sufficient cost information will be developed to determine a cost of construction and the financial benefits of the proposed system, along with projected debt financing. Business Plan Initial plans will be developed for operating the proposed pro ject so that it will be sustainable. The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 8 PROJECT BENEFIT The economic and public benefits of the wind/solar/battery energy project will be determined based on the following criteria: • Potential annual fuel displacement (gal and $) over the lifetime of the renewable energy project • Potential impacts on fuel purchases, and investments in fuel and bulk fuel infrastructure • Comparison with diesel operational base case • Potential for local jobs to displace fuel purchases BUDGET The following budget is based on project milestones Milestone # Phase Price 1 Preliminary report and work plan $6,000 2 On-site data collection $8,000 3 Installation of monitoring equipment $45,000 4 Options analysis and cost estimates $7,000 5 Conceptual design report $26,000 Total $91,000 The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 9 Cost Quote Tables 1 through 5 detail the milestones, deliverables, and costs associated with each within IES’ proposed scope of work. Table 1: Milestone #1- Preliminary Report and Work Plan Table 2: Milestone #2 On-site data collection Tasks Milestone/Deliverable Price Travel to site with team to verify site conditions Condition report Included Confirm as-built drawings, and survey electrical distribution, select site Included Data collection plus travel to Akiachak from Anchorage with a project team consisting of an electrical engineer, diesel mechanic, and project manager and research assistant System condition report Included Total $ 8,000 This item is estimated to require 70 hours of professional services. Tasks Deliverable Price Collect studies and mechanical electrical drawings related to existing base Base systems, as, builts and energy studies Included Identify site condition, community information Base System Design Documentation Binder Included Research and writing to develop a project plan and site description Draft Conceptual Design Workplan Included Total $6,000 This item is estimated to require 55 hours of professional services. Tasks Milestone/Deliverable Price The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 10 Table 3: Milestone #3 - Installation of Monitoring Equipment Table 4: Milestone #4 - Options Analysis and Cost Estimates Field support, to include installation of a 34 meter met tower, data logger and sensor. This includes purchasing and installing the met tower, data logger and sensors, for wind speed, direction, solar insolation and temperature , with 12 months data collection and resource report. This task is estimated to require 10 days of equipment procurement, mobilization, installation and demobilization Installation report on monitoring equipment Included Data gateway for load information at power plant Load profile Map of electrical distribution Distribution map Total $45,000 This item is estimated to require 375 hours of professional services. The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 11 Table 5: Milestone #5 - Feasibility and Conceptual Design Report 3.0 Project Timeline and Schedule The table below summarizes the timeline, milestones and deliverables associated with this quote. Task Milestone/Deliverable Price Field support, including documentation, remote troubleshooting and diagnostics, training activities, assistance with maintenance, assistance with data collection and evaluation, and availability to attend workshops and tutorials Draft and final Operating Manuals Technology survey, of proposed wind, solar and battery systems Identify potential system components, and collection of design, installation, support and documentation Options Analysis HOMER and PVWatts analysis Total $7,000 This item is estimated to require 60 hours of professional services. Item Includes Amount Resource Assessments Final Conceptual Design Projected Costs/Financing Total $26,000 This project is estimated to require 200 hours of professional services. The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 12 Associated Milestone Task Deliverable Projected Completion Date 1 assessment of existing base system components Preliminary report 3 months from start 2 Plan base system design and instrumentation Onsite assessment report 3 months from start 3 Installation of monitoring equipment Monitoring system report 6 months from project start 4 Data collection and analysis Options analysis repoer 12 to 18 months from project start 5 Conceptual design, cost estimate and financial and operational feasibility Conceptual design report 18 months from project start The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 13 4.0 Project Team The following are the senior team members for this project. Key Personnel The following individuals and organizations will be the primary technical support for this project. Their resumes along with others can be found in the Resume file, section 12 of this application. Intelligent Energy Systems, LLC Dennis Meiners (Lead Project Manager), Principal and Founder of Intelligent Energy Systems, LLC (IES). This project will benefit from Dennis’s many years of experience, and his support team and network of energy and technology specialists. IES will coordinate reconnaiss ance and engineering activities, drawing on experience with similar projects and the abilities of a number of experts in the field of wind-diesel-battery systems. IES intends to establish the same level of on-going commitment to Akiachak as it has to other remote, rural communities in Alaska. Pati Crofut (Grants Manager), Highly experienced rural utility accounting consultant and trainer. She has been solely responsible for the grant accounting and financial management on numerous USDA High Energy Cost grants awarded to villages in Western Alaska and administered through IES. 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. He has an extensive experience managing and conducting energy projects in Alaska’s harsh, remote conditions and communities. Jean-Paul Pinard, PhD, P.Eng. (Consulting Engineer), 27 years of experience in the energy sector as an engineer, scientist, lecturer, and advocate on renewable energy. 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. Carl Brothers, P.E., (Power Integration and Controls Specialist) President of Frontier Power Systems, pioneered a number of successful wind diesel systems for Alaska and Canada and is involved with the growth of high penetration wind diesel systems across the Arcti c. The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 14 Greg Egan (Solar PV Specialist), President of Remote Power, Inc. in Fairbanks has over 30 years of experience in renewable energy design, data collection and telemetry integration, drawings, maintenance plans and specifications, and in renewable energy system feasibility studies. As the first NABCEP certified PV installer in Alaska and a journeyman electrician he has been responsible for the design and installation of hundreds of photovoltaic power systems for residential, commercial and industrial applications across the state. Mr. Egan has extensive experience working in rural Alaska. This includes the design of the solar power systems and custom array racking that were installed at the Water Treatment Facilities located in Deering, Kobuk, Noatak, and Noorvik and Shungnak in 2013. Ian Knapp Research Technical Specialist, Graduate in statistics with a focus on technical analysis with a strong desire to contribute to the future of Alaska while becoming a more being a more skilled and knowledgeable statistician. John Columbus (Mechanical Engineer - E.I.T.), Expertise in HOMER and other methods of modeling energy systems and load profiles such as CAD modeling, logistics and procurement experience for remote/rural Alaska procuring materials, transportation logistics, and construction field work in rural Alaska. The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 1 Intelligent Energy Systems, LLC 110 W. 15th Avenue, Suite A • Anchorage, AK 99501 (907) 770-6367 • iesconnect.net • (907) 677-1886 Fax Akiachak Power Company Cost Quotation for Feasibility Analysis and Conceptual Design for Wind+Solar+Battery+Diesel Power System The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 2 Contents 1.0 Project Overview ................................................... Error! Bookmark not defined. 2.0 Cost Quotation ...................................................... Error! Bookmark not defined. 3.0 Project Timeline and Schedule ............................. Error! Bookmark not defined. 4.0 Project Team ......................................................... Error! Bookmark not defined. The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 3 Project Overview The Community of Akiachak is 14 air miles from Bethel, with the villages of Tuluksak, Akiak, Kwethluk, Napaskiak, Napakiak within a radius of 16 airmiles. Bethel, Napaskiak and Kwethluk have measured wind resources demonstrated to be viable wind energy production. The Akiachak Corporation (AC) is investigating the economic viability of installing wind turbine generators for electrical generation facilities. AC is proposing to install a reference 50m meteorological tower as well as a LIDAR meterological unit to simultaneous collect and correlate wind data across the community at heights greater than or equal to 50 meters. The monitoring program will evaluate specific sites in and around Akiachak and can be easily expanded to surrounding communities through redeployment of the Lidar unit, and continued use of the Akiachak reference station. The monitoring program in Akiachak will continue for 12 months. Monthly wind resource reports will be produced with a final report on a summarizing the data collection, and opportunities for the application of low interia wind turbines on taller towers. A prior wind resource assessment was conducted for the Community of Akiachak in (2007). There are several factors which indicate that the community and the surrounding communities could benefit from a re-evaluation of the wind resource in this area. This project is responsive to both a local and regional need to develop renewable resources as well as evaluate the potential for expanding the harvesting wind energy across the state . This study is especially relevant in light of advances in wind technology which has demonstrated the viability of the economic application of large rotor diameter wind turbines on taller towers. First, the wind resource assessment was conducted using a 30 meter tower in a wooded area. That early study indicated that wind resource was marginal and at the time less than what is needed for the economic deployment of wind power. However, the community is located 14 air miles from Bethel, in similar terrain and topography, where there is a definite commercial wind resource. Extrapolating the wind resource from earlier studies to higher levels, say 50 to 60 meters, estimated to be significantly improved beyond 5.5 m/sec. The re-evaluation of the resource, is proposed for the following important reasons: 1. Wind technology, specifically low wind speed, wind technology has and continues to improve. The 100 kW wind turbines recently installed in Atmautluak, and at the Kwethluk project which is under construction, are installed on 40 and 50 meter meter tilt-up towers respectively. These turbines are equipped with low inertia, high efficiency 24 meter rotors are able to harvest wind energy across a broad spectrum of lower average wind speeds. Technical developments are underway from several companies to increase this and other 100 kW machine’s rotor diameter to 30 meters. These advances are designed to improve turbine capacity factors in low wind speed regimes, ( 4.0 m/s measured at 30 meters) in the 30% range. This resource is previously characterized in the earlier study by Vaught. Additionally, much development is underway which scales these platform to the 40 meter rotor and 250 kW range. The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 4 Technical improvements in rotor efficiency, increased rotor diameter combined with taller guyed towers are making the use of wind power, in communities, like Akiachak, and surrounding communities like Akiak and Tulusak, with more moderate wind resources, potentially economically viable. 2. The communities of Akiachak, as well the surrounding communities of Akiak and Tuluksak, have few renewable energy opportunities, beyond wind and solar. Solar is unlikely to provide sufficient energy to meet the majority of the community’s needs throughout the year, or represent significant potential for large scale fuel displacement. The fact that these communities are so close to other communities with a viable wind resource, ( Kwethluk, Bethel and Napaskiak). It is proposed that the potential for wind resource at or above the 50 meter height is indicated, with consideration that there may be detrimental influences on the previous study from local terrain, tower height and tower placement. The fact these communities are so is so close to other communities with a viable wind resource merits further investigation. 3. This study proposes to install and instrument a 50 meter meterological tower, in Akiachak. This tower will be installed with navigational lighting, and used as subregional reference tower. A Lidar unit will be placed in various locations around the community to collect simulatenous data, and compare the wind potential at various heights and locations around the community. The study area could easily be expanded to other nearby communities, through redeployment of the Lidar unit. This method would benefit multiple communities, and more accurately define the actionable wind resources. This work involves the installation of both an instrumented 50 meter wind monitoring tower and a Lidar unit. The 50 meter tower will serve as the reference station and the Lidar unit will be moved around the community to identify the most optimal sites. Together the taller met tower and the Lidar unit will be used for simultaneous correlation of wind speed, temperature and wind direction and shear data at rotor reference heights 30, 40, 50 meters and beyond. The project is designed around the installation of a traditional 50 meter met tower (with FAA paint and lighting). The mast will be instrumented at 20, 30 and 50 meters. The wind resource met tower measurements will be correlated to a 3D scanning lidar unit to provide a vertical wind profile excess of 80 meters. The met tower will serve as reference base station, and the Lidar unit will be deployed at different locations across the community and to nearby communities validate higher level wind speed measurements. The lidar unit can be redeployed every 3 months to prospect for efforts to improve and test local wind conditions. The base met tower data and lidar data will be correlated for direction, speed and shear. The wind resource assessment is a crucial factor in wind energy development. Legacy technologies, and legacy studies which employed 20 to 30 meter met masts, have shown limitations with today’s improved turbines, especially projects. The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 5 This study proposes to use a combination of reference met tower (50 meter) plus a WindCube® type of LIDAR unit to correlate time series vertical profiling to accurately and more rapidly and rigorously validate the wind resource in Akiachak. While the reference tower is fixed, the Lidar unity can be easily be relocated on a period basis to prospect for the most productive location in the community. Once Akiachak has been accurately characterized, the Lidar unit can be cost- effectively deployed to other locations, and other communities as a replacement for met masts. The Lidar data can be used to accurately define the resources, reduce deployment and improve decision-making. This region has limited renewable resources. This level of study would be of great value to surrounding communities, both upriver and down river. The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 6 Project Details Site Location and Description The community of Akiachak is located on the Kuskokwim river approximately 14 airmiles from Bethel. The project proposes to erect the meter tower in an open area southwest of the community, which has relatively good exposure winds coming from the north, and southwest. This study will determine the best potential locations for wind turbines in the community, and determine the impacts the nearby vegetation has likely effected measurement of wind from the north west, north, and north east. Wind Monitoring Equipment The wind monitoring equipment consists of a guyed 50m tubular steel mast. Anemometers are mounted at the 30, 40, and 50 meter levels. Direction vanes are mounted at the 40 and 50m levels. A data logger and temperature sensor are mounted at 2m. The data logger is equipped with a cellular data transmission device which transmits recorded data to an email account on a daily basis. The configuration and type of instrumentation will include site photos, vegetation heights and types, GPS, location, elevation, and sensor descriptions, orientations, logger type, collection channels and installation and placement details. A LIDAR Unit: WindCube® type or equivalent, will be mounted on a small trailer with an accompanying power supply. Both the NRG data logger cell modem. The Lidar unit will initially be deployed adjacent to the met tower, and then redeployed to other locations across the community. The tower installed is anticipated to be installed during the Fall 2023 and the monitoring program conducted through 2023-2024 This scope of work includes: • Permitting Installation and instrumentation of a meterological tower • Equipment rental • Location of Wind Cube trailer • Establish cell communication and data collection • Daily downloading of data, • Resource analysis of resource • Monthly data comparison and performance estimates • Potentially 3 relocations of Lidar unit potential development sites • 4 quarterly reports. The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 7 • Final report • Removal of tower and equipment Wind Shear Analysis and Vertical Extrapolation The 50 m wind data was extrapolated to 80 m hub height for wind flow and energy yield modeling. The measured data was used to determine power law shear exponents and log law roughness lengths in 12 direction sectors. Then the directional frequency distribution will be used to calculate a weighted average shear exponent and roughness length for all wind directions. Due to the location and ground cover around the met tower, the wind resource will be evaluated by comparing wind potential measurements from the Lidar unit with reference plane displacement (RPD) shear analysis extrapolated to hub height of selected wind turbines. With RPD and Lidar measurements from various locations, both the height and proximity of trees are used to calculate an effective offset of the ground surface to account for wind flow over vegetated and forested areas. Following the summary shear analysis and extrapolation, the correlated met tower/Lidar reference plane data can be extrapolated to other selected wind sites and compared to various hub height and power curves of low wind speed turbines. ( Frontier 24, Frontier 30, EWT 61). This level of study is expected to determine and confirm the estimated hub height wind speed at which the average annual wind speed is in the 5-6 m/s range. The ratio of long term hub height wind speed to measurement height will be used to scale to wind speed, direction and frequency distribution for subsequent wind flow and energy yield modeling. Wind Flow Model The Wind Atlas Analysis and Applications Program (WAsP) will used to extrapolate the hub height wind resource data from the measurement site to each of the wind turbine sites. The long term hub height wind speed and direction frequency distribution, described previously, will be used along with ground elevation and aerodynamic surface roughness data to produce the WAsP model. A discreet wind resource file will be calculated for each potential wind turbine site at which the Lidar is located. Because the Lidar unit is portable, the Lidar measurement unit can be redeployed on a monthly or quarterly basis to compare resource productivity from multiple locations around and outside of the community to produce comparative energy yield models. From a met tower reference site in Akiachak, the Lidar unit can be redeployed to nearby communities of Akiak, Tuluksak, Kwethluk, and Napaskiak for rapid and subsequently more cost effective subregional resource assessment. Task 1 – Lease Equipment to Project The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 8 IES offers to supply and install a fully functional wind monitoring tower with new, calibrated anemometers, as well as Wind Cube Lidar unit. The unit will be equipped with an I-Pack for daily downloading of wind data. The equipment will be leased for 18 months Task 1 Total $144,000 Task 2 - Install equipment in Akiachak Equipment will be installed in Akiachak on a fixed price basis. The installation will consist of the following tasks: • Install anchors • Assemble and erect towers • Program loggers • Activate cellular loggers • Prepare site installation report Assumptions: • Sites are level and cleared and are accessible by skid steer and trailer • Equipment will be delivered to Akiachak by barge. • Ground is assumed to appropriate for the use of screw anchors, embedment with up to two anchors per guy and 4 per tower base. Tower base will require a ballasted foundation frame. • FAA permitting requires painting of tower and the installation of navigation lights, which will require have been ordered. Tower Installation $ 41,000 Task 2 Total $ 41,000 Task 3 - Monitor equipment, perform QC on data and submit monthly report $2000/ month/site/12 months Additional Equipment needed Cell phone/ ISP - $160/month 3 redeployments of Lidar Task 3 Total $ 39,000 Task 4 - Prepare final report The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 9 Task 4 Total $ 24,000 Task 5 – Remove equipment Equipment will be removed from Akiachak; estimated early October 2024. Tower Removal Task 5 Total $32,000 Cost Summary – IES Wind Resource Assessment Milestone FY 2022/24 Total 1 Lease equipment to Project Q1 2023 $ 144,000 2 Install Tower Q3 2023 $ 41,000 3 Data management and Lidar redeployment Q3-2023 thru Q3- 2024 $ 39,000 4 Prepare Final Report Q4 2024 $ 24,000 5 Remove Tower Q3-Q4 2024 $ 32,000 Total $ 280,000 Deliverables IES will provide monthly summary reports on the wind data as well as an annual wind resource assessment report summarizing the extent of the wind resource. Schedule The equipment will be installed before September 30, 2023 , if Authorization to Proceed is received prior to March 1, 2023. Period of performance is 18 months. The project can commence work on this project with a purchase order or letter of committal from an authorized representative. PROJECT BENEFIT The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 10 An accurate understanding of the wind resource at higher elevations is necessary for determining wind system viability. The data analysis will enable accurate evaluation of resource potential and choices optimized around parameters of interest such as, turbine production compared to local and regional reference sites, These options will be compared to the diesel operational base lines, and evaluated with respect to the community’s goals. The turbines to be included in the evaluation include: • Frontier, 24.4, and 30 • EWT 54, 61 The final report will include an estimate of expected annual energy production from thse turbines at various locations and configurations as potential renewable energy sources for the community. The report will also include a initial construction cost estimate for the most productive options. The outcome of this project will provide a basis for determining the economic viability of wind energy for this and other similarly situated communities in the Yukon and Kuskokwim regions. 3.0 Project Timeline and Schedule: The table below summarizes timeline, milestones and deliverables associated with this quote. Milestone Task Deliverables Projected Completion Date 1 Site characterization Preliminary report 3 months from start 2 Plan base system design and instrumentation procurement Onsite assessment report 3 months from start 3 Installation of monitoring equipment Monitoring system report 6 months from project start 4 Data collection and analysis Options analysis repoer 12 to 18 months from project start 5 Wind Resource Modeling and site report Final design report 18 months from project start The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 11 4.0 Project Team The following are the senior team members for this project. Key Personnel The following individuals and organizations will be the primary technical support for this project. Intelligent Energy Systems, LLC Dennis Meiners (Lead Project Manager), Principal and Founder of Intelligent Energy Systems, LLC (IES). Mr. Meiners will draw on his many years of experience, to manage the overall project and the project support team, which includes wind technology specialists. IES will be responsible for the installation and operation of the resource evaluation and equipment deployment. Mr. Meiners will draw upon many years of Alaskan operating experience with similar projects. Through Mr. Meiners, IES has demonstrated an on-going commitment to improving the energy independence of rural Alaskan communities. Pati Crofut (Grants Manager), Highly experienced rural utility accounting consultant and trainer. She has been solely responsible for the grant accounting and financial management on numerous USDA High Energy Cost grants awarded to villages in Western Alaska and administered through IES. Dale Letourneau (Electrical Engineer), Specializing in remote, independent energy generation and both off-grid and grid connected power systems. Mr. Letourneau, has more than 40 years of experience in design, construction and operation of energy systems. Mr. Letourneau’s practical engineering approaches originate from his formative years before and during university working with his family’s electrical supply and contracting business. Jean-Paul Pinard, PhD, P.Eng. (Consulting Engineer), 27 years of experience in the energy sector as an engineer, scientist, lecturer, and advocate on renewable energy. Specializes in wind resource assessments in Arctic and complex terrain. Jean-Paul is the leading wind resource expert in Northern Canada. His PhD is in cold weather modeling of wind resources. Mr. Pinard has conducted over 50 detailed wind resource assessments in nearly every community in Yukon and Northwest Territories. He will be the principal investigator responsible to installation, set-up and maintenance of the instrumentation. conducting energy modelling and data analysis. Extensive work with Indigenous communities to empower their renewable energy economies. Mr. Pinard will be responsible for tower placement, equipment installation and calibration, as well as data analysis, data quality, and site evaluation. Carl Brothers, P.E., (Power Integration and Wind Energy Specialist) President of Frontier Power Systems. Mr. Brothers is the former director of the Atlantic Wind Test Site, Canada’s premier wind energy test facility. He has been responsible for the development of over 100 MW of large scale grid connected wind systems and is familiar with the full range of wind technologies. Mr. Brothers has evaluated the performance of over 20 wind turbines, and is responsible for some of the most successful community scale and off grid wind diesel systems The information in this document is proprietary and shall not be distributed, reproduced, used or copied without the express written consent of IES, LLENERGY SYSTEMS Page | 12 in Eastern Canada. Mr. Brothers has been responsible for design improvements to mid-sized wind turbines, and is familiar with cost, deployment, installation and integration issues. He is involved with the growth of high penetration wind diesel systems across the Arctic. Mr. Brothers will assist with equipment and site selection, evaluation of data and comparison with similar projects in other parts of the Arctic and Alaska. Mr. Brothers will assist with program design and site selection. Greg Egan (Field Support Specialist), President of Remote Power, Inc. in Fairbanks has over 30 years of experience in remote power systems, data collection and telemetry integration, drawings, maintenance plans and specifications, and in renewable energy system feasibility studies. Greg is a journeyman electrician, and expert at small system remote power supplies for communications equipment across Alaska. He will responsible for the Lidar power supply design. Ian Knapp Research Technical Specialist, Graduate in statistics with a focus on technical analysis with a strong desire to contribute to the future of Alaska while becoming a more being a more skilled and knowledgeable statistician. Adam Schandler, PEng (Mechanical ), Mr. Schandler has 10 years of mechanical engineering expertise specifically related to the data collection, analysis, modeling, monitoring and design of wind power plants. He has expertise in data analysis, sensor calibration, wind resource assessment, tower placement, Wind Farmer, Windographer, and WASp models. Mr Schandler and Mr. Pinard together will be responsible for Wind Atlas Analysis and Applications Program (WAsP) modeling, data quality, and interpretation. USDA is an equal opportunity provider and employer. If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form (PDF), found online at http://www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, by fax (202) 690-7442 or email at program.intake@usda.gov. Rural Development Rural Utilities Service 1400 Independence Ave. SW, Room 4121-S Mail Stop 1568 Washington, D.C. 20250 Voice 202.720.9452 Fax 844.929.9883 January 11, 2022 Mr. Edward George Tribal Administrator Akiachak Native Community 51070 Main Street Akiachak, Alaska 99551 Dear Mr. George: On behalf of United States Department of Agriculture (USDA) Rural Utilities Service (RUS), Electric Programs, I would like to congratulate you on the selection of the Akiachak Native Community for a competitive High Energy Cost Grant of up to $2,265,809 under the Funding Opportunity Announcement (FOA) published May 4, 2021 at www.grants.gov (Opportunity No. RD-RUS-HECG21). This letter confirms your selection for a grant award for the Akiachak Solar-Battery Storage & Energy Efficiency project to serve the native village of Akiachak, Alaska. (the Project), as described in your application and additional supporting documents. This letter sets forth the project-specific conditions for this award. Our Engineering and Environmental Staff (EE Staff) have classified the project activities as falling under 7 CFR 1970 sections 1970.54(c)(10), 1870.53(a)(2)(iii), and 1970.53(c)(3), such that an Environmental Report is required to be prepared in accordance with RD Instruction 1970-B Exhibit C Guide to Applicants for Preparing Environmental Reports for Categorical Exclusions Under §1970.54. Before we can obligate funds, our EE staff must determine whether more information is required. The EE Staff specialist assigned to review this project is listed below along with their contact information: Suzanne Kopich Environmental Protection Specialist Water and Environmental Programs USDA Rural Utilities Service Room 4121-S 1400 Independence Ave., S.W. Washington, DC 20250 Phone: (202) 961-8514 Email: suzanne.kopich@usda.gov Please coordinate with the EE Staff specialist to facilitate the completion of the environmental review for your project. Once we receive the proper environmental approval from the EE Staff specialist then we can proceed forward. If there is a change in scope, Akiachak Native Community must contact RUS to determine if additional environmental review is required. Akiachak is responsible for acquiring the necessary permits for construction and operation of the Project, and for fulfilling any environmental commitments made in the environmental report for the project. The Electric Programs staff reviewed your proposal and recommended that the following project- specific conditions be incorporated into the grant agreement: 1. The Grantee shall carry out the project construction activities as described in the Grant Project, environmental review, and supporting documents with any subsequent amendments or revisions as approved by RUS. 2. The Grantee shall submit a proposed project implementation plan including a proposed project schedule, proposed performance measures, key personnel, and a proposed project budget including any changes since the submission of the project application for RUS review and approval. Akiachak Native Community Notice of Selection and Conditions Letter HECG AK0085-A84 Page 2 of 3 The project implementation plan must be approved in writing by RUS before any request for reimbursement or advance of funds will be approved. The Grantee will immediately notify RUS in writing of any changes in project design, schedule, key personnel, or budget. 3. The Grantee shall obtain all necessary permits, licenses, easements, and rights of way for construction and operation of the Grant and shall incorporate any proposed mitigation into the project to offset potential impacts to the environment or cultural resources. The Grantee shall contact the RUS Engineering and Environmental staff immediately if any subsequent changes are proposed related to the project’s scope prior to or during construction so that they may determine if further Agency environ- mental review and approval of the revised project are necessary 4. The Grant term will run for three years from the date of the Grant agreement. 5. This Grant Award requires match funding in the amount of $24,000 to be contributed on a pro rata basis and which must be identified and committed prior to the first advance of funds under this grant. The Grantee reporting shall ensure that a full description of the nature and cost of the match contribution is included as part of the overall project implementation plan and cost tracking. RUS reserves the right to withhold grant disbursements pending confirmation of match contributions consistent with the Implementation Plan. 6. The Grant Award may be used for advances and reimbursements of eligible project costs as provided in program regulations at 7 CFR part 1709 and 2 CFR part 200, including eligible pre-award project costs, where advances are limited to expenditures to be made within 30 days following the advance. Pre- award expenditures may be reimbursed under certain circumstances where those expenditures are included in the budget approved in writing by RUS. 7. The Grantee shall request draws under the grant in writing from RUS using Form SF 271 “Outlay Report and Request for Reimbursement for Construction Programs” and supporting documentation. RUS will approve the advance or reimbursement for eligible grant activities over the term of the Grant. 8. The Grantee shall provide periodic reports as required by the Grantor. Quarterly Reports: The Grantee shall report on the expenditure of Grant Funds and any non- Federal project funds or matching contributions in quarterly financial and progress and performance narrative reports during the term of the grant. The Grantee shall attach Form SF 425 “Federal Financial Report” to these reports. Quarterly reports shall be due 30 days from the end of each quarter ending March 31, June 30, September 30, and December 31 of each year. Each quarterly report shall a narrative description of project implementation actions completed during the period. Final Expenditure Report: The quarterly report filed after the project has been completed and all project expenditures finalized shall serve as the final expenditure report. Annual Report: The last quarterly report of each calendar year shall serve as the project annual report. Final Project Report: The Grantee shall provide RUS with a final project report detailing project performance, final project expenditures, and one full year of operating data including energy produced, fuel savings, and/or cost savings associated with the project, and community benefits. This report shall include data which demonstrates whether the following performance objectives with respect to the project as listed in the grant application have been met: a. Achieve annual diesel off operations ≥ 900 hours @ $16 = reduced O&M costs $14,400 b. Displace 9,000 gallons of fuel used for power generation @ $5.00 = $45,000 c. Achieve $ 38,903 in annual savings in energy costs incurred for 9 community facility buildings resulting from energy efficiency improvements At the written request of the Grantee, RUS may extend the period for filing quarterly, annual, and final reports. 9. The Grantee shall provide bonding and insurance coverage for the project as described in the Grant Project and consistent with its own practices and 2 CFR Part 200, or its successors, as applicable. Akiachak Native Community Notice of Selection and Conditions Letter HECG AK0085-A84 Page 3 of 3 10. The Grantee shall submit to RUS a copy of an audit prepared in accordance with RUS regulations on audit requirements at 7 CFR section 1709.21 and consistent with subpart F of 2 CFR Part 200 for any fiscal year in which it expends $750,000 or more in Federal Grant Funds. Please indicate your acceptance and agreement to the above conditions by returning the attached Form RD 1942-46, “Letter of Intent to Meet Conditions” signed by an authorized representative of your organization. To expedite processing of your grant award, you may scan and transmit these forms electronically by e-mail to robin.meigel@usda.gov or by faxing a single copy of the original to us at (844) 929-9883. If you cannot agree to these conditions as drafted, please contact me by email to arrange to discuss your concerns. We will hold your executed Form RD 1942-46 until such time as the environmental review is complete. We then expect to complete the obligation of funds and issue final award documents. We will forward to you the final grant agreement incorporating these conditions for your signature. This letter is not an obligation of Federal funds. No advance of funds will be made until we have received the grant agreement executed by the individual duly authorized to enter into agreements with the Federal Government on behalf of your organization. Once again, congratulations on your selection as a High Energy Cost Grant Award finalist. We look forward to working with you to deliver the benefits of this program for the native community of Akiachak, Alaska. Sincerely, Robin Meigel Finance Specialist Electric Programs cc: Suzanne Kopich, USDA Rural Utilities Service Dennis Meiners, Intelligent Energy Systems Enclosure: Form RD 1942-46 AKIACHAK HOMER SUMMARY Solar PV (W) Battery Storage (kWh) Excess Electricity (kWh) Diesel Off Hours Fuel Consumption (Gal) Renewable Fraction (%) Diesel Base Case - - - - 166,080 0 200 - 526,165 0 160,821 0 200 500 0 2,029 123,776 9.63