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HomeMy WebLinkAboutGrant Application (signed)Renewable Energy Fund Round 14 Grant Application-Standard Form Application Forms and Instructions ALASKA ENERGY AUTHORITY This instruction page and the following grant application constitutes the Grant Application Form for Round 14 of the Renewable Energy Fund (REF). A separate application form is available for projects with a primary purpose of producing heat (see Request for Applications (RFA) Section 1.5). This is the standard form for all other projects, including projects that will produce heat and electricity. An electronic version of the RFA and both application forms is available online at: https://www. akenergyauthority. org/What-We-Do/Grants-Loans/Renewable-Energy-F und/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) 1 07.605(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. AEA 23001 Page 1 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form REMINDER: ALASKA ENERGY AUTHORITY • AEA is subject to the Public Records Act AS 40.25, and materials submitted to AEA may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. Please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. • In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by AEA. If you want information to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential, it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. AEA 23001 Page 2 of36 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form SECTION 1 -APPLICANT INFORMATION ALASKA ENERGY AUTHOR ITY 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) City of Homer, Department of Public Works Tax ID # 92-0030963 Date of last financial statement audit: 12/31/2020 Mailing Address: Physical Address: 3575 Heath St. 3575 Heath St. Homer, AK 99603 Homer, AK 99603 Telephone: Fax: Email: (907) 235-3170 Fax: (907) 235-3145 OMeyer@ci. homer.ak.us 1.1 Applicant Point of Contact I Grants Coordinator Name: Owen Meyer Title: Project Technician Mailing Address: 3575 Heath St. Homer, AK 99603 Telephone: Fax: Email: (907) 435-3124 Fax: (907) 235-3145 OMeyer@ci.homer.ak.us 1.1.1 Applicant Signatory Authority Contact Information Name: Janette Keiser Title: Public Works Director Mailing Address: 3575 Heath St. Homer, AK 99603 Telephone: Fax: Email: (907) 435-3141 Fax: (907) 235-3145 jkeiser@ci.homer.ak.us 1.1.2 Applicant Alternate Points of Contact I Name I Telephone: I Email: AEA 23001 Page 3 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALAS KA ENERGY AUTHORITY 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 D An electric utility holding a certificate of public convenience and necessity under AS 42.05 CPCN # , or D An independent power producer in accordance with 3 AAC 107.695 (a) (1) CPCN# , or 181 A local government, or D A governmental entity (which includes tribal councils and housing authorities) Additional minimum r uirements - 181 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) 181 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) 181 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 httQs:/ /www .akenergy:authority: .orgN.J hat -We -Oo/G rants-Loans/Renewable-Energy:- Fund/2021-AEF-A!;!Qiication (Any exceptions should be clearly noted and submitted with the application .) (Indicate yes by checking the box) 181 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) AEA 23001 Page 4 of36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form I SECTION 2-PROJECT SUMMARY .. 2.1 Project Title - ALASKA ENERGY AUTHORITY Provide a 4 to 7 word title for your project. Type in the space below. Homer Energy Recovery Project 2.2 Project Location 2.2.1 Location of Project -Latitude and longitude (preferred), street address, or community name. Latitude and longitude coordinates may be obtained from Google Maps by finding you project's location on the map and then right clicking with the mouse and selecting "What is here? The coordinates will be displayed in the Google search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance obtaining this information, please contact AEA's Grants Coordinator by email at grants@akenergyauthority.org or by phone at (907) 771- 3081. Latitude I I Longitude I Site 1 Latitude: 59.66458, Longitude: -151.52532 (City of Homer PRV04-EF Fireweed Ave. site) Site 2 Latitude: 59.6625, Longitude: -151.52255 (City of Homer PRV05-SK East Hill Rd. site) Site 1 Latitude: 59.65956, Longitude: -151.52017 (City of Homer PRV06-BT East Hill Rd. site) 2.2.2 Community benefiting-Name(s) of the community or communities that will be the beneficiaries of the project. City of Homer ~ - 2.3 Project Type Please check as appropriate. '-I 2.3.1 Renewable Resource Type D Wind D Biomass or Biofuels (excluding heat-only) ~ Hydro, Including Run of River D Hydrokinetic D Geothermal, Excluding Heat Pumps D Transmission of Renewable Energy D Solar Photovoltaic D Storage of Renewable D Other (Describe) D Small Natural Gas I l 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply),_ ____ __, AEA 23001 Pa ge 5 of36 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form Pre-Construction D Reconnaissance 181 D Feasibility and Conceptual Design 181 AEA 23001 Page 6 of 36 Construction ALASKA ENERGY AUTHORITY Final Design and Permitting Construction 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form 2.4 Project Description Provide a brief, one-paragraph description of the proposed project. ALASKA ENERGY AUTHORITY In the City of Homer, there exist three pressure control facilities located in the City's distribution system. This a mission critical pipeline where the City manages pressure for the potable water supply from the treatment plant to residences and business customers. These pressure control facilities are currently venting excess pressure that the City wants to recover and use to produce renewable energy. The proposed project will create a flow bypass around the existing pressure control valve at each site to flow through an energy recovery system. This system shall utilize an integrated solution, a pressure recovery valve that will generate a new source of renewable energy, reduce Homer's carbon footprint, save water and extend the life of its infrastructure. The proposed project shall have a capacity of 19 kW and generate 93,000 kwh that will be used to reduce operating costs for the City's Department of Public Works. 2.5 Scope of Work g 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 proposed project is comprised of the installation of three energy recovery units at City of Homer's sites that house pressure reducing valve and related support equipment in existing vaults. For each site, a flow bypass will be installed in a water pipeline that will direct flow through the hydroelectric energy recovery unit. This unit will use a pump-style hydro turbine combined with a standard electric generator. Additionally, sensors, pressure transducers, flow control meters, and pressure control valves are utilized in conjunction with a programmable logic controller (PLC) to monitor and adjust the delivery pressure in accordance with operational requirements. For each site, the existing low flow bypasses shall be removed. The energy recovery system shall be installed in a new purpose-built 6" bypass. The units shall be preassembled outside the vault and then moved to the vault to be installed in the new bypass. All connections are bolted flanges and adjustments are made via dismantling joints. Once fully installed, the energy recovery unit is energized by allowing water flow through the system. The control panel unit will be installed outside the vault in an enclosure. The installation shall include installation of power outage protection and auto shut off to comply with parallel interconnection rules. 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 Title of application Application Did you Amount of REF Submitted #, if known receive a grant awarded Not applicable AEA 23001 Page 7 of36 grant? Y/N _..,l.($~;) __ ~ 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form SECTION 3 -Project Management, Development, and Operation 13.1 Schedule and Milestones ALASKA ENERGY AUTHORITY Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding request. Be sure to identify key tasks and decision points, including go/no go decisions, in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases (1. Reconnaissance, II. Feasibility and Conceptual Design, Ill. Final Design and Permitting , and IV. Construction) of your proposed project. See the RFA, Sections 2.3 -2 .6 for the recommended milestones for each phase . Add additional rows as needed. Task # Milestones Tasks Start Date End Date Deliverable& 1 Final Design Mechanical and Mechanical and electrical engineering electrical design design Month 0 Month 3 drawings 2 Regulatory FERC Exemption Notice of FERC Month 2 Month 4 exemption 3 Sourcing Procurement of Equipment project comp_onents Month 3 Month 6 specifications list 4 Interconnection Completion of the Approval of electric util ity interconnection interconnection agreement agreement Month 5 Month 7 5 Construction Installation of bypass Photo in water pipeline, documentation, energy recovery inspection , delivery system installation, of energy controls, and electric al installation Month 6 Month 12 AEA 23001 Page 8 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form 1 3.2 Budget 3.2.1 Funding Sources ALASKA ENERGY AUTHORITY Indicate the funding sources for the phase(s) of the project applied for in this funding request. Grant funds requested in this application $492,500 Cash match to be provideda $o In-kind match to be provideda $107,000 Energy efficiency match providedb $0 Total costs for project phase(s) covered in application (sum of $599,500 above) Describe your financial commitment to the project and the source(s) of match. Indicate whether these matching funds are secured or pending future approvals. Describe the impact, if any, that the timing of additional funds would have on the ability to proceed with the grant. The form of the match shall be labor provided by Public Works Dept. technicians. Note that these personnel are highly experienced and have constructed comparable projects, such as PRV station rebuilds. The City of Homer Public Works Dept. is highly committed to the Project. The match in·kind resources are secured. 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. The City of Homer Public Works Dept. has budget capacity to address potential cost overruns. 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 Feasibility and Conceptual Design Final Design and Permitting Estimated $79,500 Construction Estimated $505,000 Total Project Costs (sum of above) Estimated $584,500 Metering!Tracking Equipment $15,000 3.2.4 Funding Subsequent Phases If subsequent phases are required beyond the phases being applied for in this application, describe the anticipated sources of funding and the likelihood of receipt of those funds. • 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) Not applicable AEA 23001 Page 9 of36 11/16/2021 ' I Renewable Energy Fund Round 14 Grant Application -Standard Form 3.2.3 Budget Forms ALASKA ENERGY AUTHORITY Applications MUST include a separate worksheet for each project phase that was identified in Section 2 .3.2 of this application -I. Reconnaissance, II. Feasibility and Conceptual Design, Ill. Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail your proposed project's total budget. Be sure to use one table for each phase of vour project. and delete any unnecessary tables. The milestones and tasks should match those listed in 3 .1 above. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA 's Grants Coordinator by email at grants@akenergvauthoritv.org or by phone at (907) 771-3081. Phase 1 -Reconnaissance I Source of Matching Funds: Anticipated RE-Fund Grantee CasMn-Milestone or Task Completion Matching I TOTALS Grant Funds kind/Federal I Date Funds Grants/Other ' State Grants/Other (List mifestones based on phase and type of project. See $ $ $ Sections 2 .3 thru 2 .6 of the RFA J NA $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ ! $ $ $ ---- I--TOTALS $ $ $ --Budget Categories: Direct Labor & Benefits $ $ $ Travel &Per Diem $ $ $ EQu ipment $ --$ $ Materials & Supplies $ $ $ -Contractual Services $ . $ $ -Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ AEA 23001 Page 10 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form Phase 2 -Feasibilit.r and Conce_Htual Desjg_n Source of Matching Anticipated Grantee Funds: RE-Fund Cash/In-Milestone or Task Completion Grant Funds Matching kind/Federal Date Funds Grants/Other State Grants/Other (List milestones based on phase and type of project. $ $ See Sections 2.3 thru 2.6 of the RFA ) ' NA -$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ -TOTALS $ $ ~et Categories: Direct Labor & Benefits $ $ Travel & Per Diem $ $ Equipment $ $ Materials & Supplies $ $ Contractual Services $ ~ Construction Services $ -- ·-~ ~her ~ $ TOTALS $ ..!... AEA 23001 Page 11 of 36 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ ALASKA ENERGY AUTHORITY TOTALS 11/16/2021 I ' Renewable Energy Fund Round 14 Grant Application -Standard Form Phase 3 -Final D~tsian and Permittin' Anticipated Grantee RE-Fund Milestone or Task Completion Grant Funds Matching Date Funds (List milestones based on phase and type of project. $ $ See Sections 2.3 fhru 2.6 of the RFA) Mec hanical design $45,000 $ Electrical desiQn $30,000 $ Regulatory $4 ,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $79,500 $ Budget Categories: Direct Labor & Benefits $ $ Travel & Per Diem $ $ Equipment $ $ Materials & Supplies $ $ Contract ual Services $79 500 $ Construction Services $ $ Other $ $ TOTALS $79,500 $ AEA 23001 Page 12 of 36 Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other ' $ ALASKA ENERGY AUTHORITY TOTALS $45,000 $30,000 $4 ,000 $ $ $ $ $ $ $ $ . $79,500 $ $ $ $ $79 500 $ $ $79 500 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form Phase 4 -Construction - Anticipated Grantee RE· Fund Milestone or Task Completion Grant Funds Matching Date Funds (List milestones based on phase and type of project. $ $ See Sections 2.3 thru 2.6 of the RFA) Sourcing $357,500 $ Interconnection $20,000 $ Construction $142.,500 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS --$520,000 $ Budget Categories: Direct Labor & Benefits $72,000 $ Travel & Per Diem $ $ Equipment $ $ Materials & Supplies $372,500 $ Contractual Services $10,000 $ Construction Services $66,000 $ Other $ $ TOTALS $520,000 $ AEA 23001 Page 13 of36 Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other $ ALASKA ENERGY AUTHORITY TOTALS $357,500 $20,000 $142,500 $ $ $ $ $ $ $ $ $520,500 $72,000 $ $ $372,500 $10,000 $66,000 $ $520,500 11116/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form 3.2.4 Cost Justification ALASKA ENERGY AUTHOR ITY Indicate the source(s) of the cost estimates used for the project budget, including costs for future phases not included in this application. Costs utilized two sources: -City of Homer labor rates and design and construction experience based on recent pressure reducing valve (PRV) station rebuilds. -Recent experience on comparable projects. I 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 and grant coordinator shall track project progress based on input from City of Homer staff, contractors, and suppliers. The team shall also perform site visits as appropriate during the construction period. Progress shall be tracked regularly, at least on a quarterly basis (monthly option available based on Alaska Energy Authority input) and submit electronically. j3.3.2 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 . The project manager and project accountant shall monitor city staff timesheets as well as invoicing by project contractors and suppliers to assure that all project charges are reasonable, ordinary and necessary. The expenditures shall be tracked and reported to the Alaska Energy Authority for review as an element of the progress report as described above . As a City of Homer Public Works Dept. activity, the project's finances shall be subject to the City's independent audit process. An example of the audit results and financial statements performed by BOO, an independent accounting firm , can be found at the link below: https://www .cityofhomer -ak.gov/f inance/audits The City's City Manager and Finance Director oversee controls for city departments and manage the audit process . AEA 23001 Page 14 of36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form I SECTION 4-QUALIFICATIONS AND EXPERIENCE 4.1 Project Team ALASKA ENERGY AUTHORITY 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. Janette Keiser, Public Works Director 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. Owen Meyer, Project technician 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. Janette ("Jan") Keiser will act as the Project Manager. Jan is the current City Engineer/Public Works Director for the City of Homer. Jan is a registered professional Civil Engineer in the state of Alaska and a member of the Washington State Bar Association. Jan has over 20 years of experience planning, developing and managing public works infrastructure, including water/sewer utilities and roads. In previous roles she has acted as a County Engineer/Public Works Director for Skagit County (WA) and a Project Engineer for the US Public Health Service, Indian Health Service. She has also served as Construction Counsel for Seattle Metro and Seattle Transit. Jan has worked on multiple energy projects as a consulting engineer including performing feasibility and analysis for an anaerobic digester project for the City of Hoonah, AK and a waste plastic to diesel pyrolysis project in Atlanta, GA. Owen Meyer, Grant Coordinator and Project Accountant, the Project Technician for the City of Homer Public Works Department. This entails various duties, including assembling bid packages for construction projects, writing task and change orders for surveyors, engineers and other professionals, managing and tracking proj ect finances, drafting language for ordinances and AEA 23001 Page 15 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form ALASKA ENERGY AUTHORITY resolutions to facilitate projects and public outreach. Owen also serves on the Kachemak Bay Advisory Planning Commission. Gregg Semler, CEO of lnPipe Energy (a Launch Alaska program participant) leads the City's design consultant and energy recovery equipment supplier for the Project. A veteran of the clean energy market, Gregg brings more than two decades of energy recovery technology and leadership skills to In Pipe Energy. He and his team designed and installed the first large-scale, in· pipe urban hydro project in the US. He has recently managed multiple Northwest energy recovery projects in water distribution infrastructure, including energy recovery system installations at a Skagit PUD pressure management and pumping station in Mt. Vernon, WA and at a pressure control station co-located with a recreation complex and EV charging in the City of Hillsboro, OR., which have been featured in a range of publications including WaterWorld, Hydro Review, and , Smart Energy Inti. In Pipe Energy shall provide design and project development support to the City of Homer in Task 1 (Final Design), Task 2 (Regulatory), Task 3 (Sourcing) and Task 4 (Interconnection). The City of Homer, utilizing primarily Public Works Dept. staff, shall undertake the Project construction/installation. 4.2 Local Workforce Describe how the project will use local labor or train a local labor workforce. The project construction and installation shall be undertaken by the City of Homer Public Works Department's trained mechanical technicians and as well as local journeyman electricians. AEA 23001 Page 16 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form I SECTION 5-TECHNICAL FEASIBILITY I 5.1 Resource Availability 5.1.1 Assessment of Proposed Energy Resource ALASKA ENERGY AUTHORITY Describe the potential extent/amount of the energy resource that is available, including average resource availability on an annual basis. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application (See Section 11 ). Likelihood of the resource being available over the life of the project. See the "Resource Assessment" section of the appropriate Best Practice Checklist for additional guidance. The energy resource is a function of the pressure differential and flowrates at each pressure control station. The site pressure characteristics are as summarized below: -City of Homer PRV04-EF Fireweed Ave. site: 56 psig Net (Inlet: 86/0utlet: 32)/129 ft. Net Head -City of Homer PRVOS-SK East Hill Rd. site: 70 psig Net (Inlet: 103/0ut/et: 29)/162 ft. Net Head -City of Homer PRV06-BT East Hill Rd. site: 95 psig Net (Inlet: 149/0utlet: 50)/219 Net Head The system flow characteristics are as follows: 265 gpm average flow By month: 208 (Jan.), 211 (Feb.), 207 (Mar.), 223 (Apr.), 289 (May), 351 (Jun.), 405 (Jul.), 324 (Aug.), 266 (Sep.), 252 (Oct.), 230 (Nov.), 212 (Dec.). For this analysis, the hydraulics were used as inputs and pump-based turbine curves were utilized to determine energy production. The projected energy production for the three sites is 93,000 kWh per year (combined capacity of 19 kW operating at 55.8% capacity factor). See section 5.4.5.2. Note that the City of Homer's Water and Sewer Master Plan show that a 3% population growth rate that leads to a corresponding increase in flows in the City's water distribution system, which can contribute to future energy project production increases. 5.1.2 Alternatives to Proposed Energy Resource Describe the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. The Project has multiple advantages when compared to the alternatives to the proposed energy resource. The alternative to the Project is the use of grid-sourced electricity from Homer Electric, which includes energy sourced from multiple fossil fuel-fired plants (Bernice Lake Combustion Turbine Plant, Nikiski Combined Cycle Plant, Soldotna Combustion Turbine Plant, etc.). As the first City in Alaska to develop a local Climate Action Plan, Homer is seeking opportunities to reduce the carbon-intensity of its energy supply. Converting an on-site source of wasted energy is the best path to decarbonize operations of the City's water infrastructure. Grid-supplied energy in Homer has risen at a rate almost twice that of general price inflation. The general service energy rate, including energy charges plus the cost of power adjustment (COPA) and regulatory cost charges , are currently 24 cents per kilowatt -hour -more than twice the US AEA 23001 Page 17 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form ALASKA ENERGY AUTHORITY average (US EIA). Reducing costs through energy recovery can also be beneficial in reducing water delivery expenses and potentially water rates. 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 Note that the project consists of a change in equipment configuration at an existing facility and the City will be undertaking construction on its own behalf, it is expected that there are no permits required . 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 1 appropriate Best Practice Checklist for additional guidance. The project sites are all City of Homer facilities on City property, there are no land ownership or access issues. I 5.3 Project Technical & Environmental Risk 5.3.1 Technical Risk Describe potential technical risks and how you would address them. • Which tasks are expected to be most challenging? • How will the project team reduce the risk of these tasks? • What internal controls will be put in place to limit and deal with technical risks? See the "Common Planning Risks" section of the appropriate Best Practice Checklist for additional guidance. The planned equipment and construction/installation practices have been proven through the 1 deployment and operations of comparable equipment configurations. A primary technical risk is the limited dimensions of the hatch and vault in terms of space to perlorm assembly tasks. This will require a process that installs piping and system components in subassemblies at the surface above each vault. These subassemblies will then be installed in sequence to complete the finished system. Use of computer-aided design (CAD) tools can mitigate these issues by determining the optimal sequencing of parts assembly prior to the construction/installation. Additionally, the materials choices and installation of the pipe fittings connecting the system components will need to take into account the low temperatures present at the sites to assure long- term reliability (30 yrs.+). AEA 23001 Page 18 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form ALASKA ENERGY AUTHORITY 5.3.2 Environmental Risk Explain whether the following environmental and land use issues apply, and if so which project team members will be involved and how the issues will be addressed. See the "Environmental and Permitting Risks" section of the appropriate Best Practice Checklist for additional guidance. • Threatened or endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and describe other potential barriers The project consists of a change of equipment configuration inside existing City facilities so there are no known environmental risks. Note that the Project has received a support letter from the Homer Soil& Water Conservation District (see attached). 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. No existing energy systems are present at the project sites other than an electrical grid connection. 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 ) . AEA 23001 Page 19 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form 5.4.2.1 Existing Power Generation Units ALASKA ENERGY AUTHORITY Include for each unit include: resource/fuel, make/model, design capacity (kW), minimum operational load (kW), RPM, electronic/mechanical fuel injection, make/model of genset controllers, hours on genset Unit 1: NA Unit2: Unit 3: Unit 4: Unit 5: Unit6: Is the re operational heat recovery? (Y/N ) If yes estimated N annual displaced heating fuel (gallons) 5.4.2.2 Existing Distribution System Describe the basic elements of the distribution system . Include the capacity of the step-up transformer at the powerhouse , the distribution voltage(s) across the community , any transmission voltages, and other elements that will be affected by the proposed project. The cu rrent system consists of 480V (two locations) and 220V (one location) distribution lines with electric panels and meters at. each site. 5.4.2.3 Existing Thermal Generation Units (if applicable to vour project) - Generation Resource/ Design unit Fuel type capacity -(MMBtu/hr) NA r---- d replacement costs for 5.4.2.4 O&M an existing units ---- i. Annual 0 &M cost for labor &M cost for non-labor ii. Annual 0 iii. Replace existing uni ment schedule and cost for ts Make Model Average Year Hours annual Installed --·-~fficiency -r----- ·- Power Generation Thermal Generation NA I NA NA 5.4.2.5 Annual Electricity Production and Fuel Consumption (Existing System) Use most recent year. Replace the section (Type 1 ), (Type 2), and (Type 3) with generation sources Month Generati Gene ratio Generatio Fuel Fuel Pea Minimu on(Type n (Type 2) n (Type 3) Consumptio Consumptio k m Load 1) (kWh) (kWh) n n Loa (kWh) (Diesel-{Other] d Gallons) --- AEA 23001 Page 20 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form January: NA ·--1----t February -'-L t March April ,....---I ~ June July__ --I _J August ~ Septembe -~--i r --,_ October -November December --Total =r -- -- -t---- - -- ALASKA ENERGY AUTHOR ITY ··-'--= - -- - ~- 5.4.2.6 Annual Heating Fuel Consumption (Existing System) Use most recent year. Include only if your project affects the recovered heat off the diesel genset or will include electric heat loads. Only include heat loads affected by the ~roject. Month Diesel Electricity Propane Coal Wood Other (Gallons) (Gallons) (Tons) (Cords, green tons, -~A - ----_Q_ty tons) ---January -February -·--March - April -May ~ I~ c~ June -July -'!---·-August L' September 1----1---October ---1-------November --December --Total I 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 1 variations, etc. that will affect the project. _J The Homer Water and Sewer Mater Plan evaluated population trends and the status of private development within the City and concluded that population and related demand growth through 2025 is forecast to be 3.0%. Note that this Project addresses energy use for water and related infrastructure so it shall not be impacted by demand fluctuations. AEA 23001 Page 21 of 36 11/16/2021 I Renewable Energy Fund Round 14 Grant Application -Standard Form 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 ALASKA ENERGY AUTHORITY • The total proposed capacity and a description of how the capacity was determined • Integration plan, including upgrades needed to existing system(s) to integrate renewable energy system: Include a description of the controls, storage, secondary loads , distribution upgrades that will be included in the project • Civil infrastructure that will be completed as part of the project-bu ild ings, roads, etc. • Include what backup and/or supplemental system will be in place See the "Proposed System Design " section of the appropriate Best Practice Checklist for additional guidance. Renewable energy technology approach The project shall utilize an energy recovery system to accurately replicate the functional ity of a pressure recovery valve while scavenging otherwise wasted energy (vented pressure) to produce carbon-free, renewable energy. ' Key benefits to the City of Homer i nclude: -Reliable water pressure-power generation management -The system accurately manages downstream delivery pressure and optimizes energy production without hav ing to change the current infrastructure. -Lower cost, manageable installation -The energy recovery system is modular so it can be delivered w ith key components pre -assembled ready for installation directly into a bypass at each site . -Standardized grid interconnection capability. The components comply with uti l ity safety and reliability requ irements. -Improved data-driven water management. The energy recovery system can collect important data which can be fed to supervisory control and data acquisition (SCADA) and/or a data dashboard. The system will use proven off-the-shelf hardware components (pipes, valves, microturbines, generators and s ensors) and a software-based control system and sensors with industry-standard lifecycle performance. Project design Due to the topography and layout of the City of Homer, multiple PRV stations are required throughout the City's supply network to provide potable water to residences and businesses at usable pressures. From the City's water treatment plant, located on Skyline drive, flow is divided between two main trunk lines (east and west). Along the east trunk line, there are three pressure control stations that receive water with constant flow making them well suited for energy recovery systems. These sites are known as PRV04-(Effler) EF -Fireweed Ave ., PRVOS-(Switchback) SK-East Hill Rd., and PRV06-(Bartlett) BT-East Hill Rd. At each of these pressure control sites, there are vault structures that house existing 6 ' pressure control valves on the main water pipelines as well as bypasses with smaller 2" and 3" valves to accommodate lower flow periods located in a vault structure. AEA 23001 Page 22 o f 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form ALASKA ENERGY AUTHORITY The project shall involve removing the existing bypass and installing a new bypass around the existing 6' PRVs to flow through the energy recovery system. The units will be controlled by a programmable logic controller. The control system will be installed in a weather-proof enclosure on the surface adjacent to the vault. The controls will be self-contained including all controllers, relays, ancillary power factor correction capacitors (PFCCs) and a programmable logic controller (PLC) system. The design shall comply with the Homer Electric rules governing parallel interconnection, including power outage protection and auto shut off and restart. The system has a single microprocessor multifunction relay and the main trip functions are backed up with a dissimilar yet equal trip function. For example, the instantaneous high current trip function will be first tripped by the relay but will also be tripped by the circuit breaker as a secondary means of protection. The combined site capacity is 19 kW. This capacity was determined by comparing the site hydraulics to the curves for pump as a turbine (PAT) generation units. The PAT models that are most optimal in terms of energy production and conversion efficiency for the operating ranges present at City of Homer pressure control sites were utilized. 5.4.4.1 Proposed Power Generation Units Unit# Resource/ Design Make Model Expected Expected Expected Fuel type capacity capacity life Availability (kW) factor (years) . 1 Hydroelectric 19 In Pipe ln-PRV 56% 30 98% ~ Ener,gy --. 5.4.4.2 Pro~sed Thermal General~ Units (!f ape.Jicablel_ r-Generation Resource/ Design Make Model Expected Expected unit Fuel type capacity Average life (MMBtu/hr) annual -------efficiency _ r-NA --f- [ 5.4.5 ------------------------------------. Basic Operation of Proposed Energy System AEA 23001 Page 23 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form ALASKA ENERGY AUTHORITY • To the best extent possible, describe how the proposed energy system will operate : When will the system operate, how will the system integrate with the existing system, how will the control systems be used, etc. • When and how will the backup system(s) be expected to be used See the "Proposed System Design" section of the appropriate Best Practice Checklist for additional guidance. The project will be configured to connect upstream and downstream of a City of Homer existing pressure reducing valve and thus create a bypass loop. A controlled portion of the water flowing through the existing water pipeline is diverted and enters the bypass loop. This flow passes through the energy recovery system's hydroelectric microturbine and generates electrical energy by harvesting the excess pressure in the diverted water. A pressure reducing valve is installed upstream of the turbine to regulate the pressure entering the bypass loop and ensure safe operation of the turbine. The upstream pressure reducing valve ensures that the turbine and the energy generation rate is not impacted by upstream pressure fluctuations of the water distribution system. The energy recovery system's integrated downstream pressure control valve ensures that the water re-entering the pipeline meets the downstream pressure requirement set to meet operating requirements. ,5.4.3.1 Expected Capacity Factor 56% I 5.4.5-2 Annual Electrici!}' Production and Fuel Consumption (Proposed Sy:stem ) Month Generation Generation Generation Fuel Fuel Secondary Storage (Proposed (Type 2) (Type 3) Consumption Consumption load (kWh) System) (kWh) (kWh) (Diesel-[Other] (kWh) ~~~Wh) Gallons) January 5,500 February 5,500 March 6,000 Ap ril 6,700 May 9,300 June 10,400 July 10,700 August 10,500 September 8,000 October 7,800 November 6,700 December 5 ,900 Total 93,000 AEA 23001 Page 24 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form 5.4.5.3 Annual Heating Fuel Consum~tion (Pro~osed System) Month Diesel Electricity ~~pane Coal (Gallons) (Gallons) (Tons) January NA February March A p ril May June July Au g ust Se~tember October November December Total Wood (Cords, green tons, dry tons} 5.4.6 Proposed System Operating and Maintenance (O&M) Costs ALASKA ENERGY AUTHORITY Other O&M costs can be estimated in two ways for the standard application. Most proposed renewable energy projects will fall under Option 1 because the new resource will not allow for diesel generation to be turned off. Some projects may allow for diesel generation to be turned off for periods of time; these projects should choose Option 2 for estimating O&M. Option 1: Diesel generation ON -For projects that do not result in shutting down $NA diesel generation there is assumed to be no impact on the base case O&M. Please indicate the estimated annual O&M cost associated with the proposed renewable project. Option 2: Diesel generation OFF For projects that will result in shutting down diesel generation please estimate: 1. Annual non-fuel savings of shutting off 1.$ diesel generation 2. Estimated hours that diesel generation 2. Hours diesel OFF/year: will be off per year. 3. Annual O&M costs associated with the 3. $ proposed renewable project. 5.4.7 Fuel Costs Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of operation) Unit cost ($) Diesel . (Gallons) NA Electricity Propane (Gallons) Coal (Tons) Wood Other - AEA 23001 Page 25 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form Annual Units Total Annual cost ($1 l 5.5 Performance and O&M Reporting For construction projects only 5.5.1 Metering Equipment ALASKA ENERGY AUTHORITY T J- 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. The metering equipment is estimated to cost $5,000 per site or $15,000 for the project. This equipment shall measure energy generation for the energy recovery units on a monthly basis for reporting purposes. 5.5.2 O&M reporting Please provide a short narrative about the methods that will be used to gather and store reliable operations and maintenance data, including costs, to comply with the operations reporting requirement identified in Section 3.15 of the Request tor Applications The O&M procedures tor the Project equipment are similar to the maintenance practices for the standard valves and pumps commonly used in water infrastructure. The principal maintenance measures shall consist of bearing replacements for the PAT turbine generator units and diaphragm · replacements for the pressure control valves. The City of Homer shall perform an annual inspection · of the energy recovery equipment and include such component/parts replacements on its Project reporting as well as other O&M costs incurred. I SECTION 6 -ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility 6.1.1 Economic Benefit Annual Lifetime Anticipated Diesel Fuel Displaced for Power I Generation (gallons) Anticipated Fuel Displaced for Heat (gallons) Total Fuel displaced (gallons) Anticipated Diesel Fuel Displaced for Power Generation ($) Anticipated Fuel Displaced for Heat ($) Ant icipated Power Generation O&M Cost Savings AEA 23001 P age 26 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form Anticipated Thermal Generation O&M Cost Savings Total Other costs savings (taxes, insurance, etc.) Total Fuel, O&M, and Other Cost Savings $22,500 6.1.2 Economic Benefit $1.1 Million ALASKA ENERGY AUTHORITY 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. The economic benefit are the electricity savings (which consist of the combined energy, cost of power adjustment (COPA) and regulatory cost components that make up Homer Electric's combined rate that is charged to the City of Homer). Based on the current General service charges of 24.2 cents per kilowatt-hour, the annual savings for the Project is calculated to be $23,500. Assuming a 30 year operating life for the project and a 2.5% annual inflation factor, the lifetime cost savings to the City is $1.1 Million. 6.1.3 Economic Risks Discuss potential issues that could make the project uneconomic to operate and how the project team will address the issues. Factors may include: • Low prices for diesel and/or heating oil • Other projects developed in community • Reductions in expected energy demand: Is there a risk of an insufficient market for energy produced over the life of the project. • Deferred and/or inadequate facility maintenance • Other factors I As stated above, the primary system components are the same as those found in standard pumps and valves widely used by water agencies and other industrial users. As such, replacement parts shall be widely available over the expected operating period. Similarly, the operating lives for these AEA 23001 Page 27 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY component types is proven through millions of operating hours. The City does not expect any . conditions that limit the future viability of operating the Project. AEA 23001 Page 28 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form - 6.1.4 Public Benefit for Projects with Direct Private Sector Sales ALASKA ENERGY AUTHORITY For projects that include direct sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See Section 1.6 in the Request for Applications for more information. The energy savings shall be exclusively for the benefit of a public agency. Renewable energy resource availability (kWh!Jer month) Estimated direct sales to private sector businesses (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) 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: • 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 Water costs widely impact nearly every resident and business in the City of Homer. Thus, the Project's contribution to reducing water rates and/or reducing water rate increases widely benefits community members and supports economic development in the municipality. The project shall directly offset the C02 emissions for grid electricity. Based on a 1.34 lbs./kWh as reported in the City of Homer's Climate Action Plan, the project shall offset approximately 121,000 lbs. of C02 annually or 1,800 tons of C02e over the project life (30 yrs.). Additionally, the City of Homer is a proven innovator within the State of Alaska. The project's greatest benefit may well be to demonstrate the value of energy recovery in water distribution infrastructure statewide. Given Alaska's higher energy costs, topographical features (that drive a need for pressure management), and the increasing trend towards adoption of renewable energy and energy efficiency technologies, there will be widespread opportunities to replicate the Project once a Homer project is installed and operating. The City also plans to leverage the Project to perform outreach to school districts and other community members, which can provide educational benefits throughout the Kenai peninsula. Note that the Alaska Rural Water Association has provided a support letter for the Project (see attached). A EA 23 001 Page 29 of36 11/16/2021 I Renewable Energy Fund Round 14 Grant Application-Standard Form SECTION 7 -SUSTAINABILITV ALASKA ENERGY AUTHORITY 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 Similar projects with energy recovery units in operation include the Hillsboro In-pipe Hydroelectric Project in Hillsboro, OR and Skagit PUD's Division St. Pump station Energy Recovery Project in Mt. Vernon, WA. Both installations have met their projected reliability and energy production goals in operations to-date. The O&M procedures shall be performed by the same techs that service the City of Homer's pressure control stations today. Additionally, the operations shall be remotely offered through a data dashboard to assure expected uptime performance. The relevant staff will be trained in the operations and maintenance of the Project systems. The scheduled maintenance shall be integrated into the broader maintenance schedule for the City's water infrastructure equipment. 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. 1 The capital and operational costs shall be accounted for using the same control processes in place for all of the City of Homer's Public Works Dept. activities, including audit procedures. As offsets to utility electric charges, the rates shall be based on Homer Electric's energy charges. Since the project is capturing a value stream that would be otherwise wasted, it is highly economic to maintain the operations of the Project for its entire useful life. This is especially the case as the operating costs are a fraction of the savings value . AEA 23001 Page 30 of36 11/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY 1 7.1.2.1 Revenue Sources Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area over the life of the project. If there is expected to be multiple rates for electricity, such as a separate rate for intermittent heat, explain what the rates will be and how they will be determined Collect sufficient revenue to cover operational and capital costs • What is the expected cost-based rate (as consistent with RFA requirements) • If you expect to have multiple rate classes, such as excess electricity for heat, explain what those rates are expected to be and how those rates account for the costs of delivering the energy (see AEA's white paper on excess electricity for heat) .. • Annual customer revenue sufficient to cover costs • Additional incentives (i.e. tax credits) • Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) The Project is not expected to have an effect on electrical rates. There may be a benefit in terms of reducing water rates and potentially water rate increases. 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. he buyer shall be the City of Homer based on energy sa~ing achieved through net metering at the oject sites. The price shall be the value of the energy charges, which are $0.242/kWh with an pected 2.5% inflation rate. The estimated rate of return is 4% (CAPEX vs. projected revenue/cost savings value). AEA 23001 Page 31 of 36 11116/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form I SECTION 8 -PROJECT READINESS 8.1 Project Preparation ALASKA ENERGY AUTHORITY Describe what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved . Specifically address your progress towards or readiness to begin, at a m inimum, the following: • The phase(s) that must be completed prior to beginning the phase(s) proposed in th is 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. No permits will be necessary for the Project. The land/facilities are owned and secured by the City of Homer. Site surveys and design work have commenced with the City's energy recovery system contractor/partner for the Project, In Pipe Energy. The project is eligible for a FERC exemption due to the project capacity and location in a water delivery conduit. The process of drafting and filing a request and receiving FERC exemptional approval is expected to take 6-8 weeks. As a result , the design, equipment procurement and construction timing is expected to be consistent wit h the schedule as presented in Section 3 .1 8.2 Demand· or Supply-Side Efficiency Upgrades If you have invested in energy efficiency projects that will have a positive impact on the proposed project, and have chosen to not include them in the economic analysis , applicants should provide as much documentation as possible including: 1. Explain how it will improve the success of theRE project 2 . Energy efficiency pre and post audit reports, or other appropriate analysis, 3. Invoices for work completed , 4. Photos of the work performed, and/or 5. Any other available verificat ion such as scopes of work, technical drawings, and payroll for work completed internally. Not applicable 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 _ AEA 23001 Page 32 of 36 ll/16/2021 Renewable Energy Fund Round 14 Grant Application -Standard Form ALASKA ENERGY AUTHORITY 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. Attached support letters include: -Alaska Rural Water Association -Homer Soil & Water Conservation District -In Pipe Energy, the City of Homer's energy recovery system partner for the proposed project. 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, re~orting, and information requests. Not applicable. 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. Not applicable SECTION 12-LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below, please provide a list of additional information submitted for consideration. City of Homer Energy Recovery Feasjbility S•udy. AEA 23001 Page 33 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form (SECTION 13 -AUTHORIZED SIGNERS FORM Community/Grantee Name: City of Homer Regular Election is held: Date: Not a licable [Authorized Grant Signer(s): Printed Name Title Term Janette Keiser Public Works Director NA Printed Name Term Rob Dumouchel City Manager NA I Grantee Contact Information: Mailing Address: 3575 Heath Street Phone Number: (907) 435-3124 Fax Number: (907) 235-3145 ALAS KA ENERGY AUTHORITY Signature -~K~ - Email Address: omeyer@ci.homer.ak.us Federal Tax 10 #: 92-0030963 Please submit an updated form whenever there is a change to the above information. AEA 23001 Page 34 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form SECTION 14-ADDITIONAL DOCUMENTATION AND CERTIFICATION ALASKA ENERGY AUTHORITY SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information and resumes of Applicant's Project Manager, Project Accountant(&), 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 Janette Keiser Signature ~ k~ Title Public Works Director - Date I -I~-'2-'2- AEA 23001 Page 35 of 36 11/16/2021 Renewable Energy Fund Round 14 Grant Application-Standard Form AEA 23001 Page 36 of 36 ALASKA ENERGY AUTHORITY 11/16/2021