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Home My WebLink AboutTDX Power Sand Point Generating AEA Grant Application 9-22-14Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 1 of 32 7/2/14 Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round VIII of the Renewable Energy Fund Heat Projects only. If your application is for energy projects that will not primarily produce heat, please use the standard application form (see RFA section 1.5). An electronic version of the Request for Applications (RFA) and both application forms are available online at: www.akenergyauthority.org/REFund8.html. • If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org. • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases 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 budget for each phase of the project. • 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 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. • 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. • In the sections below, please enter responses in the spaces provided, often under the section heading. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed. REMINDER: • Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority 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. • 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 the Authority. 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 VIII Grant Application – Heat Projects AEA 15003 Page 2 of 32 7/2/14 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) TDX Power, Sand Point Generating Type of Entity: Electric Utility Fiscal Year End: 30 September Tax ID # 26-3434790 Tax Status: X For-profit ☐ Non-profit ☐ Government (check one) Date of last financial statement audit: Mailing Address: Physical Address: 615 E. 82nd Ave., Suite 200 615 E. 82nd Ave., Suite 200 Anchorage, AK 99518 Anchorage, AK 99518 Telephone: Fax: Email: 907-762-8450 jtierson@tdxpower.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Title: Jan Tierson Sr. Electrical Engineer/Project Manager Mailing Address: 615 E. 82nd Ave., Suite 200 Anchorage, AK 99518 Telephone: Fax: Email: 907-350-7532 jtierson@tdxpower.com 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: John Lyons 907-762-8450 jlyons@tdxpower.com Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 3 of 32 7/2/14 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) X An electric utility holding a certificate of public convenience and necessity under AS 42.05, or ☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or ☐ A local government, or ☐ A governmental entity (which includes tribal councils and housing authorities) 1.2 APPLICANT MINIMUM REQUIREMENTS (continued) Please check as appropriate. X 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 by checking the box) X 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 by checking the box) X 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 http://www.akenergyauthority.org/vREFund8.html. (Any exceptions should be clearly noted and submitted with the application.) (Indicate by checking the box) X 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 VIII Grant Application – Heat Projects AEA 15003 Page 4 of 32 7/2/14 SECTION 2 – PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Sand Point Excess Wind Utilization 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project – Latitude and longitude, 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 at 907-771-3031. Sand Point, Alaska. (55deg 20’ 43” N, 160deg 29’ 21”W) 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Sand Point, Alaska 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type X Wind to Heat ☐ Biomass or Biofuels ☐ Hydro to Heat ☐ Solar Thermal ☐ Heat Recovery from Existing Sources ☐ Heat Pumps ☐ Other (Describe) ☐ 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction ☐ Reconnaissance X Final Design and Permitting ☐ Feasibility and Conceptual Design X Construction Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 5 of 32 7/2/14 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed heat project. TDX AWE is requesting phase III and IV funding for installation of electric boilers at public facilities to utilize non-firm excess wind power for heating. This work was originally proposed in 2008 as part of the Sand Point wind turbine installation, but not implemented due to wind turbine project cost and schedule difficulties Presently, lacking means to deliver excess wind, considerable excess wind energy is dissipated into a resistive dump load, and the Island’s two 500KW wind turbines are curtailed to 300KW each. This project proposes to install thermal nodes at 2 community facilities – the Sand Point School and Health Clinic - with total installed nameplate electric boiler capacity of 600 kW. Preliminary energy auditing (incorporating previous reports) will be performed on the facilities to determine the “energy baseline” from which project impact can be measured going forward. The project also includes integration of building energy use data into the existing power plant SCADA system such that ongoing operational performance can be measured and optimized. 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this heat project, (such as reduced fuel costs, lower energy costs, local jobs created, etc.) The public facilities served will benefit from reduced energy costs. Communities in general will benefit from investing their energy dollars into locally produced energy, promoting the use of technology locally. This project will serve to further demonstrate a successful wind to heat application, leading to project and operating experience that can be leveraged across the industry. Reporting structures put in place will increase community awareness of energy costs, alternatives, and efficiency measures, which serve to promote responsible energy use and choices. Providing increased benefit from the existing wind system will increase the communities confidence in wind power and in sustainable energy. Installing infrastructure in the School is an opportunity to reach children and influence their understanding of energy use and impact. Other non-economic public benefits include a reduction in atmospheric carbon, and other pollutants, and reduced dependence on volatile fuel sources. 2.6 PROJECT BUDGET OVERVIEW Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 6 of 32 7/2/14 Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The current project is proposed to be funded by $307,120 from the State of Alaska, through the REF grant program, with a cash and/or in-kind match of $76,780 from TDX Power. 2.7 COST AND BENEFIT SUMARY Summarize the grant request and the project’s total costs and benefits below. Costs for the Current Phase Covered by this Grant (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $ $307,120 2.7.2 Cash match to be provided $ $61,424 2.7.3 In-kind match to be provided $ $15,356 2.7.4 Other grant funds to be provided $ 0 2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4)$383,900 Other items for consideration 2.7.6 Other grant applications not yet approved $ 0 2.7.7 Biomass or Biofuel Inventory on hand $ 0 2.7.8 Energy efficiency improvements to buildings to be heated (upgraded within the past 5 years or committed prior to proposed project completion) $ 0 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.9 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $ 383,900 2.7.10 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects $ 0 2.7.11 Estimated Direct Financial Benefit (Savings) The economic model used by AEA is available at www.akenergyauthority.org/REFund8.html. This economic model may be used by applicants but is not required. Other economic models developed by the applicant may be used, however the final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. $ 1,692,000* *Assuming 100% of cost of displaced heating fuel is direct benefit, 18,000 gallons annual savings, 20 year project life, $4.70/gallon fuel cost 2.7.12 Other Public Benefit If you can calculate the benefit in terms of dollars please $ Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 7 of 32 7/2/14 provide that number here and explain how you calculated that number in Section 5 below. SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant anticipates project management assistance from AEA or another government entity, state that in this section. Jan Tierson, Senior Applications Engineer, TDX Power Engineering Group, will serve as the Project Manager for this project. Jan’s prior experience includes system commissioning on an early NREL 250KW demonstration wind only capable wind/diesel/battery/rotary converter project. Jan was also the project engineer on a 1.8MW custom AC‐DC‐AC power converter designed and commissioned for Con Edison for use in connecting emergency generation without adding fault current. Jan also was the utility scale electrical team leader at Northern Power Systems, responsible for electrical design, fabrication and installation of their 2.3MW, class IV (full power converter coupled) wind turbine prototypes. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 8 of 32 7/2/14 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in 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 of your proposed project. Please fill out form provided below. You may add additional rows as needed. Milestones Tasks Start Date End Date Project Scoping and Vendor Solicitation NTP +1 day NTP + 14 Weeks Collect baseline data, verify assumptions, issue design report, Long Lead Equipment Purchase Orders Issued NTP +1 day NTP + 14 Weeks Finalize requirements, Issue RFQs, compare submittals Permit Applications Completed NTP + 12 Weeks NTP + 16 Weeks Issue drawings to fire and code enforcement Final Environmental Assessment and Mitigation Plans Completed Not Applicable Resolution of Land Use, Right of Way Issues Not Applicable Permitting, Rights-of-Way, Site Control Completed NTP + 12 Weeks NTP + 20 Weeks Finalize equipment locations at public buildings and obtain easements Final System Design Completed NTP +1 day NTP + 24 Weeks TDX design/fab interface with long lead equipment suppliers Construction Design and feasibility requirements Prepare, issue and review construction bid level documents Finalize all material and equipment selection Develop data collection and reporting Final Cost Estimate Completed NTP + 20 Weeks NTP + 24 Weeks Updated Economic and Financial Analysis Completed NTP + 24 Weeks NTP + 26 Weeks Power or Heat Sales Agreements in Place NTP + 14 Weeks NTP + 32 Weeks Final Business and Operational Plan in Place NTP + 24 Weeks NTP + 26 Weeks Award Construction Contracts and Order Balance of material NTP + 26 Weeks NTP + 30 Weeks Construction and Construction Support NTP + 36 Weeks NTP + 46 Weeks Integration and testing NTP + 44 Weeks NTP + 54 Weeks Final acceptance, commissioning and start-up complete (Milestone) NTP + 54 Weeks NTP + 54 Weeks Operations Reporting: Setup and test new performance reporting templates specific to new operating modes NTP + 44 Weeks NTP + 56 Weeks Operations Reporting and first year monitoring NTP + 56 Weeks NTP + 108 Weeks Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 9 of 32 7/2/14 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 10 of 32 7/2/14 3.3 Project Resources Describe the personnel, contractors, personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. Project management, engineering, procurement, and all administrative functions will be performed in-house by TDX Power employees. TDX Power has successfully studied, designed and constructed integrated power systems throughout the state of Alaska. TDX engineering staff members have extensive experience with design, application, and commissioning of diesel (synchronous), wind (asynchronous), and inverter‐based power systems. TDX has the expertise on staff to successfully implement the proposed system. 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Please provide an alternative contact person and their contact information. TDX Power’s project manager will closely monitor project performance with regular internal progress and results reporting. Since the community will be involved in the information gathering, periodic communication will be made as required. Technical and budgetary progress will be reported to AEA monthly throughout the project, or as directed by AEA. Report findings will be issued at the completion of the project. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 11 of 32 7/2/14 3.5 Project Risk Discuss potential problems and how you would address them. Potential changes to the electrical generation system, such as introduction of a “low load” diesel, implementation of a “diesels off” mode, or increased City load, would result in reduction of available heat for recovery. In this proposal, there is considerable margin of excess wind available, which will allow considerable changes to the system without jeopardizing the economics of the project. The “Excess Wind Power hourly analysis - Sand Point 2012” spreadsheet in this proposal calculates the “unused excess wind” that is forgone based on lack of installed boiler capacity. Similarly, the amount of genset minimum load in this spreadsheet can be set to a very low number, or even zero, to represent low load diesel or wind only operation. In the 2012 case, even assuming zero minimum genset load (diesels off) and assuming a constant heating demand of 600KW, there is still (a tiny amount of) excess energy available. Also, for conservatism, “Tower 2” wind data was used for this analysis, which is in a poorer wind site, and for which data gaps exist (25 days of “zero wind speed” in 2012) To an extent, this proposal limits the installed boiler capacity, in part to limit costs by reducing the number of installation/construction sites, and in part to hedge against emerging technology and/or potential system changes, while still providing substantially improved wind utilization. Another risk is that improper measuring, reporting or operational/maintenance attention is applied following commissioning. TDX is firmly committed to furthering sustainability in remote energy and will perform the appropriate baseline activities and recording/reporting structures to monitor the amount of heat recovered/consumed in the new system. 3.6 Project Accountant(s) Tell us who will be performing the accounting of this Project for the Grantee and include contact information, a resume and references for the project accountant(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project accountant indicate how you intend to solicit project accounting support. Laura Bain, Controller - See attached resume Kristin, Canaday, Accountant – See attached resume 3.7 Financial Accounting System Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 12 of 32 7/2/14 Discuss the accounting system that will be used to account for project costs and who will be the primary user of the accounting system. The Accounting System: Viewpoint software which specializes in project cost accounting. Primary Users: Laura Bain & Kristin Canaday 3.8 Financial Management Controls Discuss 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 Renewable Energy Fund Grant Program. TDX Power Finance performs GAAP accounting. All staff is very experienced in financial controls. TDX Power has had a number of other successful grants. Because of experience with government contracts TDX Power accounting staff has knowledge of FARS. This includes having an understanding of what are allowable and unallowable costs. Staff will become very familiar with and committed to the grant terms in order to adhere to the proper controls. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 13 of 32 7/2/14 SECTION 4 – PROJECT DESCRIPTION AND TASKS The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. If some work has already been completed on the project and the funding request is for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available, in the market, to be served by your project. 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. The 2008 Sand Point wind power project REF predicted 18,094 gallons of fuel savings from adding excess wind heating in 3 community buildings: School 30,501 gallons avg heating fuel consumption Clinic 10,382 gallons avg heating fuel consumption Rec Center 2,742 gallons avg heating fuel consumption Please reference attached “Annotated Sand Point DownEaster file” excel file for background information on original projections. Presently, the Sand Point power plant SCADA system collects system data on a 2 second sample interval, with data collection in place since commercial operation in 2011. The goal in this proposal is to validate the earlier excess wind recovery predictions by using recent system operating data. Since the plant’s wind turbines are output limited (500kW units limited to 300kW), it is not possible to use the recorded kWH dumped to resistive load bank to represent excess energy. To calculate excess energy given load and wind data, TDX wrote a MATLAB script to average 2012 City load and Nacelle wind speeds into 8760 (each hour of the year) hourly average data points. (Please reference attached “Excess Wind Power hourly analysis - Sand Point 2012” excel file for reference and use). The wind turbine power curves were then used to calculate potential wind generation. A spreadsheet was developed to account for genset minimum allowed load setpoint and “fast dumpload” minimum load setpoint. (heating elements at the community buildings will be on a slower dispatch rate than those associated with the “fast” regulating dump load at the power plant. It assumed that up to 50KW may need to be reserved for dissipation in the “fast” dumpload, and thus not available for other heating purposes) The spreadsheet also allows the user to calculate system fuel use with or without wind turbines, allowing correlation with HOMER model data. A conservative estimate for available excess wind based on 2012 data is 1,330,545kWH (representing approximately the equivalent energy as 35,340 gallons of fuel) (1 gallon #2 fuel oil LHV energy content = 128450BTU = 37.65KWH). Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 14 of 32 7/2/14 The amount of excess wind that can be utilized depends upon the nameplate capacity of installed heaters. In our example, with 1,330,545kWH of available excess wind and 600kW of installed capacity, 1,293,425 kWH could be utilized, provided that the heat loads can accept the heat when it is delivered. It is understood that heating demand does not always correlate with excess wind availability. Our recent calculation does not have the sophistication to estimate this correlation, neither does it account for benefit of thermal energy storage. In this application we are estimating these factors. In general, the Sand Point wind resource is notably stronger during the heating season. Also, the School presents a consistently heavy thermal demand, and the mass of water contained in the swimming pool represents a significant amount of thermal storage. Assuming our 600kW of installed boiler capacity is effectively reduced to 300KW due to demand factors, this would reduce the 1,293,425kWH that could be utilized to 828,422kWH, or the equivalent energy contained in 22,000 gallons of fuel. (no boiler conversion efficiency considered) This indicates that the 2008 prediction of 18,094 gallons saved annually is a conservative prediction. It should be noted that the 2008 submission proposed the following electric boiler installations School 400KW Clinic 100KW Rec Center 30KW During the 2010 – 2011 time frame TDX decided it was more cost effective to install 500KW at the school and 100KW at the Clinic and forego the 30kW installation at the Rec center. Also, HOMER was used to validate spreadsheet results (HOMER does not have capabilities toinclude items such as minimum genset load or minimum load bank KW). The attached PDF “HOMER elec summary” has a quick comparison between HOMER and Spreadsheet results (WT2 data), to show reasonable match between the two. (“Sand Point w meas load data” HOMER file attached) 4.1.1 For Biomass Project only Identify any wood inventory questions, such as: • Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the biomass resource? • Inventory data. How much biomass is available on an annual basis and what types (species) are there, if known? Please attach any forest inventory reports NA 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Heating Energy System Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 15 of 32 7/2/14 Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. Please refer to section 4.4.4 a) 4.2.2 Existing Heating Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. Although TDX also owns a fuel distributorship in Sand Point, we are committed to making the cost of heating community facilities in Sand Point more affordable by reducing the need for diesel fuel. Heat from excess electricity will be less expensive than the diesel equivalent. 4.2.3 Existing Heating Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. TDX believes there is much more community benefit in producing energy locally (i.e. wind power) than in distributing a product refined elsewhere, where most of the heating dollars spent leave the community. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods Capacity is addressed in section 4.1 and 3.5 Please refer to attached preliminary design documents for system design detail. No significant barriers are anticipated 4.3.2 Land Ownership 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. Previous experience at Sand Point has been that excess wind recipients are receptive to equipment installations on their premises to utilize excess wind for heating purposes, and these recipients have renewed their support for this project. 4.3.3 Permits Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 16 of 32 7/2/14 Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. • List of applicable permits • Anticipated permitting timeline • Identify and discuss potential barriers There are no barriers to permitting the activities of this project. Two permits are anticipated, neither of which is perceived as a project risk. - Plans will need to be submitted to the State of Alaska Fire Marshal for review of life safety issues. The approval process typically takes 2‐3 weeks. - A City of Sand Point permit is required to ensure compliance with local zoning codes. Based on past experience, the approval process takes approximately 4 weeks. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 17 of 32 7/2/14 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: • Threatened or endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barriers Radio equipment used for remote control has allocated frequency bands appropriate for intended use and no FAA or other impacts are anticipated No other environmental issues are known to apply to this project 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicant’s records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system Total cost for the Sand Point Excess Wind Utilization project is estimated at $383,900 Requested grant funding is $307,120. Applicant TDX Power will match 20% of the study cost with cash or in- kind contribution of $76,780. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for any new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of recording the impacts of AEA projects on the communities they serve.) O&M costs will be built into the rate for excess electricity sales resulting from this project. TDX will recover these costs through the sale of electricity over the life of the project, exactly as it currently recovers O&M costs for its existing assets. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 18 of 32 7/2/14 The heaters and controls employed are very similar to those existing on the power plant boiler and dump load, and pose no significant increase in new equipment types to maintain. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 19 of 32 7/2/14 4.4.3 Heating Purchase/Sale The heat purchase/sale information should include the following: • Identification of potential energy buyer(s)/customer(s) • Potential heat purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant-funded project Cost of excess energy for heating purposes is bound to within the equivalent cost of heating with oil (or any other competing heating source) 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please fill out the form provided below and provide most recent heating fuel invoice that supports the amount identified in “Project Benefits” subpart b below. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 6.7m/s @ 20 meters Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank) i. Number of generators/boilers/other School Boilers: 2 , Clinic Boilers: 2 ii. Rated capacity of generators/boilers/other School: TBD, Clinic:347MBH Gross Output Each iii. Generator/boilers/other type NA iv. Age of generators/boilers/other School: TBD, Clinic:2004 v. Efficiency of generators/boilers/other 83% (Estimated) b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor See 4.4.2 ii. Annual O&M cost for non-labor See 4.4.2 c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] Refer to system data in attached excel worksheet “Excess Wind Power hourly analysis - Sand Point 2012” ii. Fuel usage Diesel [gal] Other 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 20 of 32 7/2/14 iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] School: 30,501 gallons avg heating fuel consumption* Clinic: 10,382 gallons avg heating fuel consumption* *Historical Data. 2013 consumption data has been requested. ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] School 400KW electric boiler nameplate Clinic 100KW electric boiler nameplate b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] Please refer to section 4.1 ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] NA ii. Coal [tons or MMBtu] iii. Wood or pellets [cords, green tons, dry tons] iv. Other Project Cost a) Total capital cost of new system $383,900 b) Development cost 0 c) Annual O&M cost of new system Absorbed in tariff d) Annual fuel cost 0 Project Benefits Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 21 of 32 7/2/14 a) Amount of fuel displaced for i. Electricity ii. Heat 18,094 gallons displaced (per 2008 estimates)(Note: see section 4.1 for description of updated analysis, which indicates 2008 prediction is conservative. The 2008 prediction is used for simple payback calculation). iii. Transportation b) Current price of displaced fuel $4.70/Gal (Estimated) (Actual fuel contract prices requested and TBD) c) Other economic benefits d) Alaska public benefits Please refer to section 2.5 Heat Purchase/Sales Price a) Price for heat purchase/sale Price to be determined. Value of excess energy used for heat is upper bounded by the equivalent fuel cost. (37.65 KWH per gallon @ 83% conversion efficiency @ X current price per gallon. X $/gallon multiplied by 0.032 gives the upper bound for cost per kWH) ($0.15/kWR@$4.70/gal) Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 4.4* Payback (years) 4.5 years* *Assuming 100% of cost of displaced heating fuel is direct benefit 4.4.5 Impact on Rates Please address the following items related to the proposed location of the heating project. If more than one building will be impacted, please address this information for each building. • Building name Sand Point School • Type or primary usage of the building K through 12 school with large community swimming pool and gym • Location 269 Red Cove Rd, Sand Point, AK 99661 • Hours of operation The building is occupied by students and staff members from 8 am – 5 pm Monday – Friday during the school year from the middle of August to the middle of May. The school is occupied after school hours and year round for the use of the public library, gym, and pool. • Single structure or multiple units Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 22 of 32 7/2/14 Single with adjoining wings • Total square footage 49,293 • Electrical consumption per year $159,994 (2010 Data Electricity at $ 0.52 / kWh ) • Heating oil/fuel consumption per year $147,959 (2010 Data # 2 Fuel Oil at $ 3.59 / gallon) • Average number of occupants The building is occupied by 99 students and 16 full time staff members, and is occupied after school hours for the use of the public library, gym, and pool. • Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. An ASHRAE Level II Energy Audit was issued in July 2012 • Have building thermal energy efficiency upgrades been completed? o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. Unknown, TBD o Estimated annual heating fuel savings Unknown, TBD • If the building is not yet constructed please provide evidence of the value of planned building envelope efficiency investments beyond typical construction practices. Include anticipated savings associated with efficiency investments if available. NA 4.4.5 Impact on Rates (Continued) Please address the following items related to the proposed location of the heating project. If more than one building will be impacted, please address this information for each building. • Building name Sand Point Health Clinic • Type or primary usage of the building Health Care • Location 172 Red Cove Rd, Sand Point, AK 99661 • Hours of operation Varies • Single structure or multiple units Single • Total square footage 10000 (approximate) • Electrical consumption per year NA • Heating oil/fuel consumption per year Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 23 of 32 7/2/14 Building new in 2006. Two full year avg = 10,300 gal (2008 Data) • Average number of occupants NA • Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. None known, Information requested • Have building thermal energy efficiency upgrades been completed? o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. NA o Estimated annual heating fuel savings NA • If the building is not yet constructed please provide evidence of the value of planned building envelope efficiency investments beyond typical construction practices. Include anticipated savings associated with efficiency investments if available. NA Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 24 of 32 7/2/14 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 25 of 32 7/2/14 SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project. In order for the applicant to receive credit for heating fuel displaced the applicant must provide the most recent invoice for heating fuel purchased. • Anticipated annual revenue (based on i.e. a Proposed Heat Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project This Project is expected to displace over 360,000 gallons of diesel fuel over its 20 year life. Because TDX is a regulated Utility, with regulated tariffs, Alaska residents, Sand Point residents and Sand Point businesses are the primary direct beneficiaries of this project. Spending heating dollars on locally produced electricity supports economic activity, contributes towards investment in utility infrastructure and sustainability and attract residents. SECTION 6– SUSTAINABILITY Discuss the operation of the completed project so that it will be sustainable. Include at a minimum: • Proposed business structure(s) and concepts that may be considered. • How the maintenance and operations of the completed project will be financed for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation • Commitment to reporting the savings and benefits TDX Sand Point Generating will assume ownership of all assets associated with this project. TDX has full‐time onsite operators, supported by in‐house engineering and maintenance personnel who travel to the site as needed. TDX as part of its commitment to Community Energy Baseline activitity will maintain reporting on ongoing facility energy costs, tracking performance against facility baseline. (i.e. are ongoing energy cost increases or decreases due to operational issues, increased/decreased demand, efficiency measures, etc. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 26 of 32 7/2/14 SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. In 2008, Aleutian Wind Energy, a TDX Corporation Subsidiary applied for REF funding with the following project description: AWE proposes to complete an existing AEAlUS DOE grant funded construction project with this grant. We will install (2) 500kW Vestas wind turbines and integrate them with an existing diesel plant. We also propose to install thermal nodes at 3 community facilities – the school the clinic. and the rec center (in that priority) - to absorb excess electricity as needed. 65% design was completed for boiler for a 100KW electric boiler at the Sand Point health center and 500KW electric boiler at the school A power purchase agreement was executed between TDX and the City, however installation was not completed due to cost overrun on the wind portion of the project. SECTION 8 – LOCAL SUPPORT AND OPPOSITION Discuss local support and opposition, known or anticipated, for the project. Include letters of support or other documentation of local support from the community that would benefit from this project. The Documentation of support must be dated within one year of the RFA date of July 2, 2014. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 27 of 32 7/2/14 SECTION 9 – GRANT BUDGET Tell us how much you are seeking in grant funds. Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. 9.1 Funding sources and Financial Commitment Provide a narrative summary regarding funding source and your financial commitment to the project Upon execution of an AEA grant agreement in accordance with this application, all funding will be in place to implement the project. TDX’s match will be cash or in‐kind. No further funding will be required and we can begin work on the project without delay. 9.2 Cost Estimate for Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment, and its related use to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. NA Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 28 of 32 7/2/14 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 and Commissioning). Please use the tables provided below to detail your proposed project’s budget. Be sure to use one table for each phase of your project. Phase I Reconnaissance: Phase I Reconnaissance requires a preliminary feasibility study designed to ascertain whether a feasibility study is warranted. Funding is not requested for this phase. TDX has determined overall resource availability based on prior analysis and analysis of a comprehensive set of existing load, generation, and wind data gathered by the SCADA system on the existing power plant. Proposed system is based on readily available equipment and technology allowing costs and performance to be determined with sufficient confidence to proceed with detailed design and construction. Phase II Feasibility Analysis, Conceptual Design Requirements: Phase II Feasibility Analysis requires a detailed evaluation intended to further assess technical, economic, financial, and operational viability of a project and to narrow the focus of final design and construction. Funding is not requested for this phase. Conceptual design has been performed in prior project efforts. Proposed system is based on readily available equipment and technology allowing costs and performance to be determined with sufficient confidence to proceed with detailed design and construction. Phase III Final Design and Permitting Requirements: . Phase III Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS Project Scoping and Contractor Solicitation NTP +14wks $14960 $3740 Cash and/or In Kind $18700 Long Lead Equipment Purchase Orders Issued $8976 $2244 Cash and/or In Kind $11220 Permit Applications Completed Not Applicable $0 $0 Not Applicable $0 Final Environmental Assessment and Mitigation Plans Completed Not Applicable $0 $0 Not Applicable $0 Resolution of Land Use, Right of Way Issues Not Applicable $0 $0 Not Applicable $0 Permitting, Rights-of-Way, Site Control Completed $2992 $748 Cash and/or In Kind $3740 Final System Design Completed $20944 $5236 Cash and/or In Kind $26180 Final Cost Estimate $2992 $748 Cash and/or $3740 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 29 of 32 7/2/14 Completed In Kind Updated Economic and Financial Analysis Completed $2992 $748 Cash and/or In Kind $3740 Power or Heat Sales Agreements in Place $2992 $748 Cash and/or In Kind $3740 Final Business and Operational Plan in Place $2992 $748 Cash and/or In Kind $3740 TOTALS $59840 $14960 Cash and/or In Kind $74800 Budget Categories: $ $ $ Direct Labor & Benefits Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ $ $ $ Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 30 of 32 7/2/14 Phase IV Construction and Commissioning Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS Configure communications and program controllers NTP + 56 Weeks $15,840 $3,960 Cash and/or In Kind $19,800 Purchase transformers and distribution materials NTP + 14 Weeks $26,320 $6,580 Cash and/or In Kind $32,900 Purchase communications and controls components NTP + 30 Weeks $31,600 $7,900 Cash and/or In Kind $39,500 Purchase heating equipment NTP + 14 Weeks $41,600 $10,400 Cash and/or In Kind $52,000 Electrical and mechanical subcontracts (Construction) NTP + 46 Weeks $87,040 $21,760 Cash and/or In Kind $108,800 Commissioning NTP + 56 Weeks $34,320 $8,580 Cash and/or In Kind $42,900 Close Out NTP + 108 Weeks $10,560 $2,640 Cash and/or In Kind $13,200 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $247,280 $61,820 $309,100 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ SECTION 10 – AUTHORIZED SIGNERS FORM Community/Grantee Name: TDX Sand Point Generating Regular Election is held: Date: Authorized Grant Signer(s): Printed Name Title Term Signature See attached Resolution of the TDX Board of Directors Nov 2013 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 31 of 32 7/2/14 I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Grantee Contact Information: Mailing Address: 615 E 82nd Ave Anchorage AK 99501 Phone Number: Fax Number: E-mail Address: kord@tdxpower.com Federal Tax ID #: 26-3434790 Please submit an updated form whenever there is a change to the above information. September 22, 2014 SUPPORT FOR TDX SAND POINT GENERATING PROPOSAL The Aleut Corporation supports the TDX Sand Point Generating proposal to improve the performance of the existing wind-diesel hybrid power system in our community. TDX plans to complete the design and installation of heat loads in large community buildings that will make use of excess wind energy to offset diesel fuel now burned for heat. We commend TDX for their leadership in Alaska’s wind-diesel efforts that now allow Sand Point’s abundant wind resource to provide power for residents. We strongly believe improving upon the integration of renewable energy makes sense and is critical to an affordable energy future for all of rural Alaska. On behalf of the Aleut Corporation I strongly urge you to consider the significant accomplishments of this project to date and award those efforts with the additional funding necessary for the Aleutian Wind Energy Farm in Sand Point. This will make an even bigger contribution to Sand Point’s continued sustainability. Sincerely, Thomas Mack, President Aleut Corporation One Aleut Plaza, 4000 Old Seward Highway, Suite 300, Anchorage, Alaska 99053 | Ph: 907.561.4300, 800.232.4882 | Fax: 907.563.4328 | www.aleutcorp.com