HomeMy WebLinkAboutAEA_REF Application_Appeal Kawerak_REVISEDREPRESENTING)
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Advancing)the)capacity)of)our)people)and)tribes)for)the)benefit)of)the)region.
PO)Box)948)•)Nome)Alaska)99762)•)907.443.5231)•)www.kawerak.org))
Alaska Energy Authority
Attn: Executive Director Curtis Thayer
CC: Grants Manager Karin St. Clair
813 W Northern Lights Blvd
Anchorage, AK 99503
grants@akenergyauthority.org
October 13, 2020
Executive Director Thayer,
Thank you very much for providing the opportunity to apply for Round 13 of the
Renewable Energy Fund. While we understand that our grant application, whether
awarded or not, is not a guarantee of funding and that the Alaska Energy Authority’s
Renewable Energy Fund is dictated by the decisions of the legislature, we ask that you
hear our appeal.
We were informed of the current state of our application: that we are an eligible entity
with an eligible project, however, our application is being considered a continuation of
the project proposals submitted by the Alaska Center for Energy and Power (ACEP) in
Rounds 2, 3, and 4. The previous applications in Rounds 3 and 4 were awarded
$1,943,410.72 for geothermal exploration at Pilgrim Hot Springs. If Kawerak’s new
Round 13 application is considered part of this project, and the new project limitations
are maxed out at $2 million, this leaves a total of $56,589.28 left for us to apply for,
which is just 15% of the requested amount of $368,821.80.
Our project intent for Round 13 is not the same as the original Pilgrim Hot Springs
exploration project presented in Round 2, 3, and 4. We are no longer planning to bring
power back to Nome. We have a completely new project with a different scope of work,
and ask that you consider this Round 13 proposal as a new request.
We want to create a sustainable, renewable microgrid system at Pilgrim Hot Springs, that
powers on-site infrastructure for long term benefits, including a district heating system,
and which acts as a long-term test on the resource for its power production capabilities.
Unaatuq has committed to creating an on-site, sustainable business that not only develops
clean energy within the region, but also creates economic development opportunities,
recreational facilities, cultural knowledge, and wellness benefits.
When the Pilgrim Hot Springs geothermal exploration proposals were submitted by
ACEP back in 2009, 2010, and 2011, it was ACEP’s intent to consider the grant
limitations of $4 million and to leave approximately $2 million on the table from the state
for possible future construction funding. If the original grant limitations had been $2
million in those early years, the proposals would have been formatted to account for that.
We ask that you consider allowing the original grant limitations of $4 million for the
project, as was in the RFA when this project was originally proposed to the authority.
REPRESENTING)
Brevig'Mission'
Sitaisaq)
Council'
Diomede'
Ifaliq)
Elim'
Niviarcaurluq)
Gambell'
Sivuqaq)
Golovin'
Chinik)
King'Island'
Ugiuvak)
Koyuk'
Kuuyuk)
Mary’s'Igloo'
Qawiaraq)
Nome'Eskimo'
Sitnasuak)Inuit)
Savoonga'
Sivungaq)
Shaktoolik'
Saktuliq)
Shishmaref'
Qikiqtaq)
Solomon'
Afuutaq)
St.'Michael'
Taciq)
Stebbins'
Tapraq )
Teller'
Tala)
Unalakleet'
Ufalaqłiq)
Wales'
Kifigin)
White'Mountain'
Iġałuik)/)
Nutchirviq)
Advancing)the)capacity)of)our)people)and)tribes)for)the)benefit)of)the)region.
PO)Box)948)•)Nome)Alaska)99762)•)907.443.5231)•)www.kawerak.org))
Another appeal we make for consideration of our full proposal amount is based on
applicant eligibility. In Rounds 2, 3, and 4 of the Pilgrim Hot Springs geothermal
exploration proposal, Alaska Center for Energy and Power (ACEP) was the main
applicant on the project proposals. While we still intend to work with ACEP as a
contractor and a close partner in this effort, they are no longer the main applicant. With
Kawerak, Inc. in the lead, one could consider this project renewed, refreshed, and with
new faces – therefore suggesting that the new limitations of $2 million maximum per
project starts now, with this Round 13 application.
To summarize our appeal, we ask that you consider the follow:
a) Consider our request as a new project, based on the fact that the scope of work
has changed dramatically since the reconnaissance and feasibility work
performed in Rounds 3 and Rounds 4 of the REF for Pilgrim Hot Springs. We are
no longer planning to bring power back to Nome – we are proposing a smaller,
on-site system that incorporates both geothermal power production and
geothermal district heating. In this instance, we should be eligible for the full $2
million grant limitation, based on the new rules of the Round 13 RFA.
b) Consider the funding limitations of $4 million when the Pilgrim Hot Springs
resource was first presented to AEA in 2009, and to allow our project to be
eligible for an additional $2,056,589.28 (eligible for the full $368,821.80 in this
application, if awarded) and depending on legislative appropriations.
c) Consider Kawerak a new applicant, based on the fact that we have submitted the
project proposal as a new eligible applicant. Kawerak, Inc. is a nonprofit tribal
consortium who is also a co-manager and majority owner of Unaatuq, LLC, the
owner of Pilgrim Hot Springs, therefore making our proposal eligible for $2
million total in grant funding and viewing this Round 13 application as the first
application in our project phases
Finally, we ask that you recognize that the work carried out in Rounds 3 and Rounds 4 of
the REF were essential and necessary to the future of this project, and that we
acknowledge and appreciate Alaska Energy Authority’s willingness to invest in Pilgrim
Hot Springs in its attempt to find the resource needed to bring sustainable, affordable
power to the Bering Strait Region. Projects are not always feasible as originally planned,
which was proven during the 2010-2014 geothermal exploration project lead by ACEP. It
was, however, proven that a smaller geothermal power production system will be
successful on-site at Pilgrim Hot Springs, and it is with that information that we base this
new, refreshed proposal and new project intent.
Thank you for your time and consideration of this appeal.
Sincerely,
Melanie Bahnke
CEO / President