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HomeMy WebLinkAboutAEA_REF Application_Appeal Kawerak_REVISEDREPRESENTING) 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)) 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