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HomeMy WebLinkAboutEklutna Village Solar Project application_AEA (003) signedRenewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 1 of 25 11/16/2021 Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round 14 of the Renewable Energy Fund (REF). A separate application form is available for projects with a primary purpose of producing heat (see Request for Applications (RFA) Section 1.5). This is the standard form for all other projects, including projects that will produce heat and electricity. An electronic version of the RFA and both application forms is available online at: https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy-Fund/2021- REF-Application. What follows are some basic information and instructions for this application: • The Alaska Energy Authority (AEA) expects this application to be used as part of a two-year solicitation cycle with an opt-out provision in the second year of the cycle. • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases (e.g. final design, construction) for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for each phase of the project (see Sections 3.1 and 3.2.2). • In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 Alaska Administrative Code (ACC) 107.605(1). • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are completed and funding for an advanced phase is warranted. Supporting documentation may include, but is not limited to, reports, conceptual or final designs, models, photos, maps, proof of site control, utility agreements, business and operation plans, power sale agreements, relevant data sets, and other materials. Please provide a list of supporting documents in Section 11 of this application and attach the documents to your application. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. Please provide a list of additional information; including any web links, in Section 12 of this application and attach the documents to your application. For guidance on application best practices please refer to the resource-specific Best Practices Checklists; links to the checklists can be found in the appendices list at the end of the accompanying REF Round 14 RFA. • In the Sections below, please enter responses in the spaces provided. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed. • If you need assistance with your application, please contact AEA’s Grants Coordinator by email at grants@akenergyauthority.org or by phone at (907) 771-3081. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 2 of 25 11/16/2021 REMINDER: • AEA is subject to the Public Records Act AS 40.25, and materials submitted to AEA may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. Please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. • In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by AEA. If you want information to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential, it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 3 of 25 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) Native Village of Eklutna Tax ID # 92-0115246 Date of last financial statement audit: February 2021 for FY2020 (FY = 10/1/19 – 9/30/20) FY 2021 to be completed in February/March 2022 Mailing Address: Physical Address: 26339 Eklutna Village Rd Same as mailing address Chugiak, AK 99567 Telephone: Fax: Email: 907-688-6020 907-688-6021 nve@eklutna.org 1.1 Applicant Point of Contact / Grants Coordinator Name: Title: Carrie Brophil Co-Director, Land and Environment Mailing Address: 26339 Eklutna Village Rd, Chugiak, AK 99567 Telephone: Fax: Email: 907-691-4843 (907) 688-6021 cbrophil@eklutna.org 1.1.1 Applicant Signatory Authority Contact Information Name: Aaron Leggett Title: President and Chair (NVE) Mailing Address: 26339 Eklutna Village Rd, Chugiak, AK 99567 Telephone: Fax: Email: (907) 688-6020 (907) 688-6021 aleggett@anchoragemuseum.org 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: Marc Lamoreaux 907-242-6967 (907) 688-6021 Marcl@eklutna.org Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 4 of 25 11/16/2021 1.2 Applicant Minimum Requirements Please check as appropriate. If applicants do not meet the minimum requirements, the application will be rejected. 1.2.1 Applicant Type ☐ An electric utility holding a certificate of public convenience and necessity under AS 42.05 CPCN #______, or ☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1) CPCN #______, or ☐ A local government, or ☒ A governmental entity (which includes tribal councils and housing authorities) Additional minimum requirements ☒ 1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant’s board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate yes by checking the box) ☒ 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement (Section 3 of the RFA). (Indicate yes by checking the box) ☒ 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as identified in the Standard Grant Agreement template at https://www.akenergyauthority.org/What-We-Do/Grants-Loans/Renewable-Energy- Fund/2021-REF-Application (Any exceptions should be clearly noted and submitted with the application.) (Indicate yes by checking the box) ☐ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. (Indicate yes by checking the box) Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 5 of 25 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. Eklutna Village Solar Energy Project – 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 61°27’24.92”N Longitude 149°22’45.01”W Site One is located directly due west of the Native Village of Eklutna (NVE). The Camp Mohawk site is the next parcel west of the Site One across the railroad tracks. Map included in package. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Native Village of Eklutna and communities serviced by Matanuska Electric Association or Chugach Electric. 2.3 Project Type Please check as appropriate. 2.3.1 Renewable Resource Type ☐ Wind ☐ Biomass or Biofuels (excluding heat-only) ☐ Hydro, Including Run of River ☐ Hydrokinetic ☐ Geothermal, Excluding Heat Pumps ☒ Transmission of Renewable Energy ☒ Solar Photovoltaic ☐ Storage of Renewable ☐ Other (Describe) ☐ Small Natural Gas 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction ☐ Reconnaissance ☐ Final Design and Permitting ☒ Feasibility and Conceptual Design ☐ Construction Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 6 of 25 11/16/2021 2.4 Project Description Provide a brief, one-paragraph description of the proposed project. Just to the west of the Native Village of Eklutna, a former gravel mining site is located along with lands conveyed to Eklutna, Inc that were contaminated by the US Government. The Native Village of Eklutna, with assistance from Eklutna, Onc., are pursuing a “next use” of these properties to incorporate a long-term, renewable energy source providing income to NVE and Eklutna, Inc by increasing benefits to shareholders and providing employment to tribal member within walking distance from their homes. This project would be a source of pride for shareholders and would allow Eklutna to expand its ongoing relationship with Matanuska Electric Association. NVE is requesting support to assess Eklutna, Inc. lands for redevelopment for solar energy deployment. 2.5 Scope of Work Provide a short narrative for the scope of work detailing the tasks to be performed under this funding request. This should include work paid for by grant funds and matching funds or performed as in-kind match. The initial feasibility phase of the Eklutna Village Solar Energy Project will provide solar system size and potential system layout for the property. Upon defining the system parameters, production estimates will be determined which will inform the economic modeling effort. Ownership structure and funding options will be communicated to NVE and Eklutna, Inc. Finally, transmission interconnection options and high-level development activity schedule will be drafted to provide next steps towards project development. With this information, NVE, in cooperation with Eklutna, Inc, should be able make decisions on the viability of advancing the project from an economic and technical standpoint. 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 ($) None None Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 7 of 25 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. Task # Milestones Tasks Start Date End Date Deliverables 1 System Sizing & Layout 6/1/22 6/30/22 Conceptual Layout Drawing 2 Production Estimate 6/15/22 6/30/22 Excel file with annual, monthly & hourly production estimates 3 Cost Estimate 6/15/22 7/31/22 Summary Cost Estimate 4 Grid Interconnection Research 6/1/22 7/31/22 Informs Cost Estimate & description on interconnection options will be described in final report 5 Permitting Research 6/1/22 7/31/22 Summary table of permitting requirements 6 Policy Research 7/1/22 7/31/22 Summary table of key policy factors affecting project 7 Economic Modelling with Sensitivities 7/1/22 7/31/22 Summary table of scenarios modelled & economic output 8 Ownership Structure Option Analysis 7/15/22 8/15/22 Summary table of ownership options & pros/cons 9 Funding Option Analysis 7/15/22 8/15/22 Summary table of funding options 10 High Level Project Schedule 8/1/22 8/31/22 Gantt chart of project activities & durations 11 Final Report 8/1/22 8/31/22 Summary Report Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 8 of 25 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 $ 22,500.00 Cash match to be provideda $ 7,500.00 In-kind match to be provideda $ 0 Energy efficiency match providedb $ 0 Total costs for project phase(s) covered in application (sum of above) $ 30,000.00 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. Eklutna, Inc is committing $7500.00 for 2022 as a match for funding on this solar energy project. These are secured matching funds. The additional grant funding would allow NVE to complete their feasibility study in 2022. If the project is economic, NVE could begin pre- construction work as early as 2023. 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. Eklutna, Inc. will make an additional budget request in the case of cost overruns. However, NVE is very confident that the feasibility assessment will come in at budget. 3.2.3 Total Project Costs Indicate the anticipated total cost by phase of the project (including all funding sources). Use actual costs for completed phases. Indicate if the costs were actual or estimated. Reconnaissance [Actual/Estimated] $ Feasibility and Conceptual Design [Actual/Estimated] $ 30,000.00 Final Design and Permitting [Actual/Estimated] $ Construction [Actual/Estimated] $ Total Project Costs (sum of above) Estimated $ 30,000.00 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 • 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) Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 9 of 25 11/16/2021 If NVE decided to move forward with development of this project, there would be a reliance on state and federal grants and/or loans with a focus on renewable energy or brownfield redevelopment. Eklutna, Inc. could also provide additional funding and may provide in-kind matches from its gravel and construction subsidiaries. 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 Phase 2 — Feasibility and Conceptual Design Milestone or Task Anticipated Completion Date- Assuming June 1, 2022 Start 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 ) $ $ $ System Sizing & Layout 6/30/2022 $ $ $2,500 Production Estimate 6/30/2022 $ $ $2,500 Cost Estimate 7/31/2022 $ $ $2,500 Grid Interconnection Research 7/31/2022 $ $ $2,500 Permitting Research 7/31/2022 $ $ $5,000 Policy Research 7/31/2022 $ $ $2,500 Economic Modelling with Sensitivities 7/31/2022 $ $ $5,000 Ownership Structure Option Analysis 7/31/2022 $ $ $1,250 Funding Option Analysis 8/15/2022 $ $ $1,250 High Level Project Schedule 8/31/2022 $ $ $2,500 Final Report 8/31/2022 $ $ $2,500 TOTALS $ $ $ 30,000 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 10 of 25 11/16/2021 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. The cost estimates were provided by Renewable IPP, which is likely to serve as the contractor for the feasibility study and report. 3.3 Project Communications 3.3.1 Project Progress Reporting Describe how you plan to monitor the progress of the project and keep AEA informed of the status. Who will be responsible for tracking the progress? What tools and methods will be used to track progress? The Project Manager, Kyle Smith, will meet with the Renewable IPP, LLC once every two weeks to discuss the results from the work completed. The Native Village of Eklutna will compare Renewable IPP’s progress against the committed schedule to actively monitor progress. In addition to this Renewable IPP, LLC will provide a progress report once per month which will measure task percent complete and adherence to the committed schedule. The Project Manager, Kyle Smith, will email Renewable IPP’s monthly progress report to AEA upon receipt. 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. This grant would be considered a “targeted” grant and would have a grant manager. A “targeted” grant does not get charged overhead expenses or any other unnecessary or unallowable expenses, if they are not allowed. To ensure this, all payment requests for this grant will be initiated by the grant manager, so that person will know exactly what expenses are being charged to that grant. Same with employee time expenses, the department head signs off on timesheets, and they are also aware of grant rules. Once a payment request is initiated or timesheet is submitted, they are approved by our Tribal Administrator and then submitted to the Finance Director who processes for payment. Both the Tribal Administrator and the finance Director are aware of and tracking every grant’s budget and make sure all expenses are inline with the budget before processing. NVE reports their expenses by grant and these reports are reviewed monthly by the TA and Finance Director and department heads. Quarterly spending reports by grant, are reviewed by these same people and the Tribal Council. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 11 of 25 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. Jenn Miller – Renewable IPP Kyle Smith – Eklutna Inc, Director of Land Assets NVE plans to engage leadership with Eklutna, Inc and renewable energy consulting firm, Renewable IPP, to manage this project. 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. Tonya Gamble – NVE Accountant (tgamble@eklutna.org) Phone - 907-863-0913 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. Renewable IPP, LLC (“Renewable IPP”) Company Overview Renewable IPP is an Alaska Grown small business which develops, designs, builds and operates utility scale solar farms. Renewable IPP was founded in 2017 with the mission to increase Alaska’s renewable energy supply by developing and delivering economic utility scale solar farm projects. The four Renewable IPP partners are all engineers by degree and have decades of energy industry, engineering, and project management experience. Renewable IPP has successfully delivered two commercial solar farm projects, 140 kW Willow Pilot (2018) and 1.2 MW Willow Expansion (2019) and is nearing completion of successful development of the ~9 MW Houston Solar Farm which is anticipated to begin construction in 2022. Since 2017, the company has Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 12 of 25 11/16/2021 developed numerous utility scale solar project appraisal tools and has gained real world experience to inform project feasibility, particularly for systems in Alaska. The following team members will contribute to the feasibility and conceptual design: Jenn Miller, CEO- Responsible for overall project management for RIPP and the following specific tasks: Cost Estimate, Permitting Research, Policy Research, Project Schedule & Final Report. Jenn has significant project development & project management experience including cost estimating (strong relationship with solar suppliers), financial cash flow modelling, permitting, analysis of utility cost of generation to understand market competitiveness. Jenn has real world experience with solar project activities and schedule durations. Chris Colbert, CFO- Responsible for production modelling, economic modelling, and ownership structure analysis. Chris has experience using PVWatts, SAM and PVSyst solar production modelling software. Chris developed Renewable IPP’s standard solar project cash flow model and this model has been validated against Renewable IPP’s completed Willow project and actual operation data. Chris is experienced in modelling numerous ownership models and funding sources to screen optimal project structuring. Sam Dennis, COO- Responsible for system sizing and layout design and grid interconnection research. Sam has led the conceptual PV design for all of Renewable IPP’s solar farms. He’s also worked closely with utility technical teams to identify grid interconnection options. Sam oversees operations for Renewable IPP and was the construction manager for the Willow Solar Farm and his expertise will be utilized to check project cost estimates and operating expenses. 4.2 Local Workforce Describe how the project will use local labor or train a local labor workforce. NVE intends to use local contractors to assess the solar energy sites. It also intends to use local construction companies to grade and prepare the project areas and construct the solar array. When the project is operational, we intend to employ tribal members for maintenance and security of the site. SECTION 5 – TECHNICAL FEASIBILITY 5.1 Resource Availability 5.1.1 Assessment of Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available, including average resource availability on an annual basis. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application (See Section 11). Likelihood of the resource being available over the life of the project. See the “Resource Assessment” section of the appropriate Best Practice Checklist for additional guidance. The Eklutna Village solar project expects to generate a consistent level of electricity through life of the project. As with most commercial scale solar energy facilities, power generation is fairly Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 13 of 25 11/16/2021 predictable and aligned to daylight hours at the site. There is some concern that shading from a nearby mountain may have a minor impact on solar energy production. 5.1.2 Alternatives to Proposed Energy Resource Describe the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. PROS: This project will have a very low cost for land acquisition since Eklutna, Inc. (Eklutna’s village corporation) owns the land and the project sites are near existing transmission in close proximity to the MEA gas-powered plant. The initial project site is cleared of trees and overburden from past mining operations and would be a candidate for brownfield reclamation and federal Indigenous energy grant funding. However, the demand for renewable energy in Southcentral Alaska is increasing while suitable sites and available lands are diminishing. Thus, we believe the Eklutna Village solar project would be more cost competitive than other similar solar projects due to proximity to transmission, low land acquisition cost, low site preparation costs, grant funding eligibility, and opportunities to expand the project. CONS: The nearby Eklutna Gas Plant and the Eklutna Dam are both sources of low-cost electricity for Southcentral Alaska. It is unlikely the Eklutna Village solar project would immediately compete with the pricing of these nearby projects. Additionally, there may be a 10% shading effect from Bear Mountain that results in some reduced energy production. 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 Permitting research is one of the key activities of the feasibility studies. Renewable IPP will research and identify applicable permitting requirements for the project along with permitting timeline and potential barriers/issues. 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. Both potential sites are owned by the applicant’s village corporation. The Eklutna, Inc. board of directors, Native Village of Eklutna, and tribal members have voiced support for this project. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 14 of 25 11/16/2021 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. The main technical risk is getting timely feedback from the utility (Matanuska Electric Association) on grid interconnection options and feasibility. MEA’s resources are outside of the project’s control and their response duration may be longer than planned by Renewable IPP. To mitigate this schedule risk, Renewable IPP, will reach out to MEA within the first week of kicking off the project to allow for as much time as possible for MEA to respond. 5.3.2 Environmental Risk Explain whether the following environmental and land use issues apply, and if so which project team members will be involved and how the issues will be addressed. See the “Environmental and Permitting Risks” section of the appropriate Best Practice Checklist for additional guidance. • Threatened or endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and describe other potential barriers Both sites have previously experienced high-intensity industrial uses, thus issues with habitat, endangered species, visual/aesthetics, and wetlands are non-existent. Due to the project’s proximity to the Native Village of Eklutna, there may be archaeological or historical concerns that Eklutna, Inc and the Native Village of Eklutna staff would work to address, mitigate, and avoid. However, no historical or archaeological resources were located during the mining operations at the site. There could be issues with navigating contaminate site requirements if the project expands to Camp Mohawk. If there would be any issues related to environmental risk, Kyle Smith, the NVE environmental directors, and the project consultants would be involved in the resolution. 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. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 15 of 25 11/16/2021 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. There is not an existing energy system in place. One potential concern would be the need to upgrade the transmission system from the site to the nearby substation at the MEA gas plant. We also anticipate some issues concerning the interconnection at or near the Eklutna gas plant substation. 5.4.2.2 Existing Distribution System Describe the basic elements of the distribution system. Include the capacity of the step-up transformer at the powerhouse, the distribution voltage(s) across the community, any transmission voltages, and other elements that will be affected by the proposed project. We anticipate a better understanding of the distribution as part of the results of the feasibility study. Transmission line are located at the north end of the project area. 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. As populations continue to grow in the Matsu Valley, Eagle River, and Anchorage, stable priced electricity supply is essential for supporting the growth of those communities. The major utilities supplying electricity to these communities are also under pressure, politically and from customers, to add more sources of renewable energy to their portfolios. As Cook Inlet natural gas reserves and exploration decline in the coming decades, locally-sourced electricity production is crucial to develop now. We hope the Eklutna Village project can serve to supply electricity to the Southcentral Alaska. A production forecast will be developed as part of the feasibility study. There would be no expected changes to demand or load for this project since it will be grid-tied. 5.4.4 Proposed System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • The total proposed capacity and a description of how the capacity was determined • Integration plan, including upgrades needed to existing system(s) to integrate renewable energy system: Include a description of the controls, storage, secondary loads, distribution upgrades that will be included in the project • Civil infrastructure that will be completed as part of the project—buildings, roads, etc. 5.4.2 Existing Energy Generation Infrastructure and Production In the following tables, only fill in areas below applicable to your project. You can remove extra tables. If you have the data below in other formats, you can attach them to the application (see Section 11). Not applicable Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 16 of 25 11/16/2021 • Include what backup and/or supplemental system will be in place See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional guidance. The system design will be determined through the course of the feasibility study. It is premature to include approximations regarding the proposed solar system configuration. 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. Preliminarily, the solar system will provide electricity directly to the grid. There is not an electricity load to offset. 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. All utility-scale solar farm projects which interconnect to MEA’s grid are required to have a meter to measure electrical output from the solar farm. MEA reads the meter monthly and sends a report to the solar farm owner who then bills MEA for the energy delivered to the grid. The detailed meter design will not be completed as part of this initial feasibility work and will be included in the later detailed design stage. 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 Not applicable until possible future phases of this project Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 17 of 25 11/16/2021 SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility 6.1.1 Economic Benefit *Not currently known for the Eklutna Village Solar Project and likely not applicable for a grid-tied system Annual Lifetime Anticipated Diesel Fuel Displaced for Power Generation (gallons) Anticipated Fuel Displaced for Heat (gallons) Total Fuel displaced (gallons) Anticipated Diesel Fuel Displaced for Power Generation ($) Anticipated Fuel Displaced for Heat ($) Anticipated Power Generation O&M Cost Savings Anticipated Thermal Generation O&M Cost Savings Total Other costs savings (taxes, insurance, etc.) Total Fuel, O&M, and Other Cost Savings 6.1.2 Economic Benefit Explain the economic benefits of your project. Include direct cost savings and other economic benefits, and how the people of Alaska will benefit from the project. Note that additional revenue sources (such as tax credits or green tags) to pay for operations and/or financing, will not be included as economic benefits of the project. Where appropriate, describe the anticipated energy cost in the community, or whatever will be affected by the project, over the life of the project. Explain how the forecast was developed and provide year-by-year forecasts The economic model used by AEA is available at https://www.akenergyauthority.org/What-We- Do/Grants-Loans/Renewable-Energy-Fund/2021-REF-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. It is a too early to develop a financial forecast for the project. NVE and Eklutna, Inc. value long-term revenue sources and investments to support our members and shareholders. The project will also bring economic benefits in the form of employment and training for tribal members. We anticipate training tribal members for security and maintenance positions during the operations phase. A utility- scale project would also employ construction and logistics companies to build and maintain the Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 18 of 25 11/16/2021 site(s). This would have a positive economic benefit by creating jobs and increasing investment in energy projects. 6.1.3 Economic Risks Discuss potential issues that could make the project uneconomic to operate and how the project team will address the issues. Factors may include: • Low prices for diesel and/or heating oil • Other projects developed in community • Reductions in expected energy demand: Is there a risk of an insufficient market for energy produced over the life of the project. • Deferred and/or inadequate facility maintenance • Other factors There is likely little risk in diminished production, demand, or revenue if we are able to enter into an agreeable power purchase agreement. Since NVE is close to Anchorage, the risk is low that maintenance and replacing equipment will be an issue. The suspected 10% shading at the site from Bear Mountain poses a risk to project development and a risk to long-term operations; however, that should be determined during feasibility and a decision will be made on whether to proceed with the project. It is not believed there are many economics risks once the project is vetted and brought online. 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. Not applicable – energy sales directed to utility. Renewable energy resource availability (kWh per month) Estimated direct sales to private sector businesses (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) Estimated sales for use by the Alaskan public (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) 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: Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 19 of 25 11/16/2021 • The project will result in developing infrastructure (roads, trails, pipes, power lines, etc.) that can be used for other purposes • The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.) • The project will solve other problems for the community (waste disposal, food security, etc.) • The project will generate useful information that could be used by the public in other parts of the state • The project will promote or sustain long-term commercial economic development for the community The project will provide another example of how Alaska can generate low-carbon electricity. The project would also align with Eklutna’s cultural philosophy and provide a cornerstone for Eklutna to create other sustainability offering in the village. There are preliminary ideas for weaving cultural and sustainability programs into the solar site to make a community demonstration for sustainable living embracing traditional methods. The solar project would be a source of pride for the Native Village of Eklutna and a source of closely-located job opportunities for tribal members. We would hope the solar site would be expanded to offer educational opportunity for tourists and Alaskans. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 20 of 25 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 At this time, operations and maintenance planning would be mostly speculative. Depending on what entity is selected to operate the project, NVE would be requiring that entity to lead the training and scheduled maintenance of the system. 7.1.2 Financial Sustainability • Describe the process used (or propose to use) to account for operational and capital costs. • Describe how rates are determined (or will be determined). What process is required to set rates? • Describe how you ensure that revenue is collected. • If you will not be selling energy, explain how you will ensure that the completed project will be financially sustainable for its useful life. The operator of the solar project is a matter to be determined. NVE is not in position to develop systems and process; however, Eklutna, Inc has an accounts payable and receivables team that can assist in ensuring collection and accounting accuracy. 7.1.2.1 Revenue Sources Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area over the life of the project. If there is expected to be multiple rates for electricity, such as a separate rate for intermittent heat, explain what the rates will be and how they will be determined Collect sufficient revenue to cover operational and capital costs • What is the expected cost-based rate (as consistent with RFA requirements) Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 21 of 25 11/16/2021 • If you expect to have multiple rate classes, such as excess electricity for heat, explain what those rates are expected to be and how those rates account for the costs of delivering the energy (see AEA’s white paper on excess electricity for heat).. • Annual customer revenue sufficient to cover costs • Additional incentives (i.e. tax credits) • Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) We anticipate receiving more information on revenue as part of the feasibility report. 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. The Eklutna Gas Plant, owned by Matanuska Electric Association, has transmission nearby and has worked with Renewable IPP on solar projects in the past. We anticipate MEA or Chugach Electric would be a power purchaser for this project. The utilities have not been contacted yet regarding this project. 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. Eklutna, Inc, Renewable IPP, and NVE have performed sites visits and some preliminary site analysis. The feasibility phase can be scheduled immediately upon receipt of the grant funds – projecting a start date of June 1, 2022 and completion of the report(s) by September 2022. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 22 of 25 11/16/2021 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. Please find enclosed a letter of support from the CEO of Eklutna, Inc and a resolution supporting the project from the Native Village of Eklutna’s Tribal Council. The project has not received any opposition or negative feedback at this time. 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. This would be the first AEA grant received by the Native Village of Eklutna. 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. A map of the Native Village, the project sites, and the nearby gas plant with substation is included with the application. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 23 of 25 11/16/2021 SECTION 13 – AUTHORIZED SIGNERS FORM Community/Grantee Name: Native Village of Eklutna Regular Election is held: Yes Date: March 2022 Authorized Grant Signer(s): Printed Name Title Term Signature Aaron Leggett President, NVE 2021-2024 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: Eklutna Native Village Tribal Office 26339 Eklutna Village Road Chugiak, AK 99567 Phone Number: (907) 688-6020 Fax Number: (907) 688-6021 Email Address: nve@eklutna.org Federal Tax ID #: 92-0115246 Please submit an updated form whenever there is a change to the above information. Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 24 of 25 11/16/2021 SECTION 14 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information and resumes of Applicant’s Project Manager, Project Accountant(s), key staff, partners, consultants, and suppliers per application form Section 3.1, 3.4 and 3.6. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project web site. B. Letters or resolutions demonstrating local support per application form Section 9. C. For projects involving heat: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that: • Commits the organization to provide the matching resources for project at the match amounts indicated in the application. • Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. • Provides as point of contact to represent the applicant for purposes of this application. • Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. An electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Aaron Leggett Signature Title President and Chair Date January 18, 2022 Renewable Energy Fund Round 14 Grant Application – Standard Form AEA 23001 Page 25 of 25 11/16/2021