HomeMy WebLinkAboutChignikHydroDamREF Rnd9FinalRenewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 1 of 30 7/8/15
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: http://www.akenergyauthority.org/Programs/Renewable-Energy-
Fund/Rounds#round9.
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 (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 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. Supporting
documentation may include, but is not limited to, reports, conceptual or final designs,
models, photos, maps, proof of site control, utility agreements, 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
IX 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.
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.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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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 IX
Grant Application – Heat Projects
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SECTION 1 – APPLICANT INFORMATION
Please specify the legal grantee that will own, operate and maintain the project upon completion.
Name (Name of utility, IPP, local government or other government entity)
City of Chignik
Type of Entity: Fiscal Year End:
City 2016
Tax ID # 92-0094970
Tax Status: ☐ For-profit ☐ Non-profit ☒ Government (check one)
Date of last financial statement audit: December 3, 2014
Mailing Address: Physical Address:
P.O. Box 110 101 Tsunami Drive
Chignik, Alaska 99564 Chignik, Alaska 99564
Telephone: Fax: Email:
907-749-2280 907-749-2300 chignikcityclerk@gmail.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name: Ranya Aboras/Lake and Peninsula Borough Title: Community Development Planner
Mailing Address:
P.O. Box 495
King Salmon, AK 99613
Telephone: Fax: Email:
907-246-3421 907-246-6602 cdc@lakeandpen.com
1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION
Name: Title: Mayor of the City of Chignik
Richard J. Sharpe
Mailing Address:
P.O. Box 110
Chignik, AK 99564
Telephone: Fax: Email:
907-749-2280 907-749-2300 Dick.sharpe@yahoo.com
1.1.2 APPLICANT ALTERNATE POINTS OF CONTACT
Name Telephone: Fax: Email:
Becky Boettcher 907-749-2280 907-749-2300 chignikcityclerk@gmail.com
Ranya Aboras 907-246-3421 907-246-6602 cdc@lakeandpen.com
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
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1.2.1 As an Applicant, we are: (put an X in the appropriate box)
☐ 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.
☒ 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)
☒ 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)
☒ 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/Programs/Renewable-Energy-Fund/Rounds#round9. (Any
exceptions should be clearly noted and submitted with the application.) (Indicate by
checking the box)
☒ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
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Grant Application – Heat Projects
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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.
Chignik Hydroelectric Dam Project
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 (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 at 907-771-3031.
56.295280.-158.402220
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
The City of Chignik
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
☐ 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 ☒ Final Design and Permitting
☐ Feasibility and Conceptual Design ☐ Construction and Commissioning
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Grant Application – Heat Projects
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed heat project.
The Lake and Peninsula Borough is applying on behalf of the City of Chignik for final design and
permitting for a run of the river hydroelectric dam project that will enable the city to eliminate
dependency on diesel fuel for electricity generation. The establishment of the project will supply
year round electrical generation for the community. The City, Tribal Council, Borough, CE2
Engineers, and the Alaska Native Tribal Health Consortium are in a collaborative venture to
manage the project successfully with ANTHC taking the lead on project management. CE2
Engineers will be continually involved to conduct work on the project following the completion of
the feasibility study in September 2014. The final feasibility report recommends the installation of a
385 kW generator with an anticipated capacity factor of 63%. The final report of the feasibility study
models this system and it was determined that the City would see an annual reduction in diesel
fuel use by 63,500 gallons annually. The study indicates that, ‘based on current electric
demand...has potential to displace 184,000 gallons of diesel fuel annually’. The system is projected
to run primarily as a diesel free system with the exception of two periods in the year where water
flow are projected to be too low. During FY15 the City has spent about $250K on diesel fuel to
generate electricity. Through this project the City will see substantial enhancements in the areas of
water supply delivery, reduced dependence on fossil fuels, and reduced maintenance of electric
generation infrastructure. The City of Chignik is already a FERC license holder for the hydroelectric
project which can significantly reduce the permitting timeline.
2.5 Scope of Work
Provide a 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.
Under this funding request the Alaska Native Tribal Health Consortium and the City of Chignik will
engage in a cooperative agreement outlining ANTHC as project managers. Through this
arrangement ANTHC will work with the City to manage purchasing, the grant file, and project
management. The City of Chignik and ANTHC will stay in close contact with the Borough as the
project develops. ANTHC and the City of Chignik will collaborate and delineate work to be
conducted on which project to entities such as, CE2 Engineers, The project costs a total of
$1,025,175.30. ANTHC will provide a 1% match for the project and will be able to access other
funding as the project would qualify for sanitation funding due to the dam being the water source
for the City. The City has obligated $50,000 towards the project for Round 9 and would like to
continue to use CE2, the firm that conducted the feasibility study for the project in the previous
phase of Feasibility and Conceptual Design.
SECTION 3 – Project Management, Development, and Operation
3.1 Schedule and Milestones
Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail.
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 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. Add additional rows as needed.
Milestones Tasks Start End
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Grant Application – Heat Projects
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Date Date Deliverables
Conceptual Design
Phase
Stream gauging, geotech, survey,
historic properties
10/16 2/17
Cooperative
agreement between
ANTHC and City of
Chignik, basic
design services such
as stream gauging
reports, geotech
investigation reports,
surveys and historic
properties
65% Design Phase Engineering Design
2/16 2/18
Engineering design
documents
100% Design Phase
All necessary permits obtained
2/18 2/19
Engineering
permits obtained
from ADNR,
ADF&G, etc.
Geotech
investigation report
Please see the attached detailed design scope of work and budget.
3.2 Budget
Criteria: Stage 2-1.B: The cost estimates for project development, operation, maintenance, fuel,
and other project items meet industry standards or are otherwise justified.
3.2.1 Budget Overview
Describe your financial commitment to the project. List the amount of funds needed for project
completion and the anticipated nature and sources of funds. Consider all project phases, including
future phases not covered in this funding request.
The City of Chignik is highly invested and committed to the project. The City will be contributing
$50,000 towards the project. The Lake and Peninsula Borough will provide support to the project
where necessary. The Alaska Native Tribal Health Consortium will provide direct project
management and financial support to the project. The cost estimates presented in the table below
represent anticipated costs of the proposed system with potential unexpected changes in site
conditions, unknowns, and logistics incorporated. CE2 Engineers will be working with ANTHC to
conduct the work for this phase of the project.
ANTHC will provide a project management match of, $10,251.75 for the total phase cost of
$1,025,175.30.
The project has an estimated direct construction cost of $4.7M. A variety of funding sources will be
pursued such a combination of grant loan funding from a variety of sources, including department
of energy and rural development to carry out the construction phase of the project. Potential
funding sources for the construction and commissioning phase includes, the Department of Energy
and Rural Development.
3.2.2 Budget Forms
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Grant Application – Heat Projects
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Applications MUST include a separate worksheet for each project phase that was identified in
section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final
Design and Permitting, and IV. Construction). Please use the tables provided below to detail your
proposed project’s total budget. Be sure to use one table for each phase of your project . 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 at 907-771-3031 or by emailing the Grants
Administrator, Shawn Calfa, at scalfa@aidea.org.
Milestone or Task
RE- Fund
Grant
Funds
Grantee
Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
(List milestones based on phase
and type of project. See sections
2.3 thru 2.6 of the RFA )
$ $ $
Conceptual Design Phase $100,965.19 $100,965.19
65% Design Phase $140,188.36 $140,188.36
100% Design Phase $87,151.79 $87,151.79
FERC, aquatic, and gauging work $160,000 $ $160,000
Geotech Investigation $175,000 $ $175,000
Engineering Permits $36,007.41 $ $36,007.15
Historic Properties $75,000 $ $75,000
Project Management $80,000 $10,251.75
ANTHC 1% in kind
match/project
management
$90,251.75
$ $50,000 City of Chignik Match $50,000
20% Contingency $170,862.55 $ $170,862.55
$ $ $
TOTALS $1,025,175.
30 $60,251.75 $1,085,427.05
Budget Categories:
Direct Labor & Benefits $364,312.75 $ $364,312.75
Travel & Per Diem $ 26,500.00 $ $26,500.00
Equipment $ $ $
Materials & Supplies $ $ $
20% Contingency Overall $
170,862.55 $ $170,862.55
$50,000 City of Chignik Match $50,000
Contractual Services $463,500 $10,251.75 ANTHC 1% in kind
match $473,751.75
Construction Services $ $ $
TOTALS $1,025,175.
30 $60,251.75
ANTHC 1% cash
match/project
management
$ 1,085,427.05
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3.2.3 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget.
Costs estimates for the project were derived from the final report of the feasibility study, Chignik
Hydroelectric Project, conducted by CE2/Hatch Engineering in September 2014.
At current, the estimated development costs for this phase is estimated to be, $1.025,175.30.
Please see the cost estimate in the feasibility study located on page 40, Table 5-2 for details as to
how estimates were derived for permitting and historic properties. A detailed estimated budget
from the proposed design team provided by ANTHC can be seen in the appendix. An overall 20%
contingency was added to the project as recommended in the feasibility study.
Total direct construction costs are estimated at, $4.7 M.
All estimated costs for construction will be finalized during the final design and permitting phase.
3.2.4 Funding Sources
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
Grant funds requested in this application $ 1,025,175.30
Cash match to be provided $ 50,000
In-kind match to be provided $ 10,251.75
Total costs for project phase(s) covered in application (sum of above) $1,085,427.05
For heat projects using building efficiency completed within the last 5 years as in-kind match, the
applicant must provide documentation of the nature and cost of efficiency work
completed. Applicants should provide as much documentation as possible including:
1. Energy efficiency pre and post audit reports,
2. Invoices for work completed,
3. Photos of the building and work performed, and/or
4. Any other available verification such as scopes of work, technical drawings, and payroll for
work completed internally.
3.2.5 Total Project Costs
Indicate the anticipated total cost by phase of the project (including all funding sources). Use
actual costs for completed phases.
Reconnaissance $
Feasibility and Conceptual Design $207,500
Final Design and Permitting $1,025,175.30
Construction $Approx. 6M
Construction costs
will be verified
during this phase of
the project.
Total Project Costs (sum of above) $ Approx. 7.2M
3.2.6 Operating and Maintenance Costs (non-fuel)
Estimate annual non-fuel O&M costs associated with the proposed system
$ 56,000/yr
3.2.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system
Fuel type Annual cost ($)
Diesel $ 24,000
$
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3.3 Project Communications
Criteria: Stage 2-1.C: The applicant’s communications plan, including monitoring and reporting, is
described in adequate detail.
Describe how you plan to monitor the project and keep the Authority informed of the status.
ANTHC will be provide written project progress reports and all other required reporting for the
project to AEA as indicated by the grant. The City of Chignik will enter into a Cooperative Project
Agreement (CPA), with ANTHC allowing them to manage the project, monitor contractors, and
provide all financial management necessary to carry out the project. The City of Chignik and
ANTHC will collaborate with CE2 Engineers to complete the work necessary for this phase of the
project. The City of Chignik and ANTHC will maintain a close relationship with the Borough in order
to keep all parties informed as to the progress and status of the project. The Borough’s Community
Development Planner will act as community liaison throughout the project as support for either
entity. Meetings will be conducted by ANTHC, the City, CE2 Engineers, AEA, and the Borough to
discuss the status of the project. Regular coordination meetings will be held between AEA and
ANTHC.
3.4 Operational Logistics
Criteria: Stage 2-1.D: Logistical, business, and financial arrangements for operating and
maintaining the project throughout its lifetime and selling energy from the completed project are
reasonable and described in adequate detail.
Describe the anticipated logistical, business, and financial arrangements for operating and
maintaining the project throughout its lifetime and selling energy from the completed project.
The City of Chignik with enter into a cooperative project agreement with ANTHC making ANTHC
project managers for this phase of the project. ANTHC, the City of Chignik, and CE2 Engineers will
work together to devise business plans for the sale of excess energy. LPB, ANTHC, CE2
Engineers and the City of Chignik will be working closely to inform community growth projections
through more detailed community energy demand modeling to be evaluated in further detail during
this final phase of design and permitting. It can be reasonably assumed that accounting for load
growth projections provided in the feasibility study, final report Appendix D, Proposed New Project
Economic Analysis Results. The residents and the businesses will be customers. Once energy
savings are calculated from the new system, new rates will be reviewed and implemented with a
percentage going towards a replacement and repair account for O&M.
Trident Seafoods is the main commercial entity who operates as a floating processor since the fire
of 2008 destroyed the City’s last operating cannery. Currently, Trident purchases electricity from
the City for the production side of the business and barges fuel in to run generators to run the
supply side of the operation. The City anticipates the lowered costs of energy to present a more
economical solution for Trident to operate in the City. Trident Seafoods is in support of the Chignik
Hydroelectric Project as they will see direct benefits to their business with a lower cost of energy.
Other affected businesses include lodges in the area such as Chignik Bay Adventures, General
Communications Inc., Alaska Communications Systems, Alaska Weather Observation Service, to
name a few.
SECTION 4 – QUALIFICATIONS AND EXPERIENCE
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4.1 Project Team
Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and
experience to successfully complete and operate the project. If the applicant has not yet chosen a
contractor to complete the work, qualifications and experience points will be based on the
applicant’s capacity to successfully select contractors and manage complex contracts.
Criteria: Stage 2-2.B: The project team has staffing, time, and other resources to successfully
complete and operate the project.
Criteria: Stage 2-2.C: The project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
Criteria: Stage 2-2.D: The project team has positive past grant experience.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information, and a
resume. 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
expects project management assistance from AEA or another government entity, state that in this
section.
The Alaska Native Tribal Health Consortium (ANTHC) will manage the grant on behalf of the City
of Chignik. The City Council has passed a resolution initiating an agreement to allow ANTHC
manage the project. If funding is awarded, the City and ANTHC will engage in a cooperative
agreement establishing ANTHC as project managers for this phase of the project. ANTHC is a
statewide non-profit health services organization, formed by congress in 1997 to assume the roles
and duties of the Indian Health Service (IHS) in Alaska. ANTHC is the largest tribal self-
governance entity in the United States, with over 1,900 employees and an annual operating budget
in excess of $475M. Approximately 25% of the operating revenue originates from other federal and
state grants and contracts. ANTHC has a 16-year history of clean audits, conducted by an
independent accounting firm in accordance with the Single Audit Act.
Eric Hanssen, P.E., LEED AP is the Senior Engineering Project Manager for the Division of
Environmental Health & Engineering. As part of the Rural Energy Initiative, he oversees design,
construction, and project development of renewable and energy efficiency projects. He has been a
part of the Rural Energy Initiative since 2007 and has served as project manager for rural water
and wastewater infrastructure projects and served as Health Facilities Engineer focused on
hospital and clinic construction and renovation projects.
Engineering Services Director (Design Build), John Warren, P.E. has over 24 years of experience
in design, construction, and management of engineering projects throughout the State of Alaska.
As Engineering Services Director, John currently oversees over $50M in infrastructure projects.
During his tenure as a P.E., he has completed more than 180 projects in 60 communities.
4.1.2 Expertise and Resources
Describe the project team including the applicant, partners, and contractors. Provide sufficient
detail for reviewers to evaluate:
• the extent to which the team has sufficient knowledge and experience to successfully
complete and operate the project;
• whether the project team has staffing, time, and other resources to successfully complete
and operate the project;
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• how well the project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
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. Include brief resumes for known key personnel and contractors 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
The City of Chignik has worked with the Alaska Native Tribal Health Consortium successfully in the
past for upgrades to their water and sewer systems. ANTHC has worked on projects in the past
that are very similar to the current dam in this community. The City has been very proactive in
seeking support for the management of the project and has obtained this support through both
ANTHC and the Lake and Peninsula Borough. Both entities will be in communication together and
with the City to ensure all O & M responsibilities are carried out successfully. CE2 Engineers has
worked with the City of Chignik for over 30 years and developed the feasibility study for the project.
All entities are very familiar with the project and have expertize constructing hydroelectric dam
infrastructure.
The Project Team consists of:
ANTHC is familiar with and has conducted projects similar to the hydroelectric project in Chignik.
ANTHC will be developing the project from a sanitation project in order to replace the dam and
penstock. The dam structure was constructed circa 1947. The replacement of both of these parts
of the dam infrastructure will enable the City to have access to clean water and will also provide
the City with stable energy production and safety through a repaired dam.
Design team staff for the project includes, Eric Hanssen, P.E., LEED AP is the Senior Engineering
Project Manager for the Division of Environmental Health and Engineering for ANTHC’s Rural
Energy Initiative. He oversees project development, design, and construction of renewable and
energy efficiency projects for rural communities with limited access in Alaska. During his tenure
with ANTHC, Eric has been Project Manager for rural water and wastewater infrastructure projects
and has served as Health Facilities Engineer for hospital and clinic construction and renovation
projects.
John Warren, P.E. John has extensive knowledge designing and constructing hydroelectric dam
structures. With over 24 years of experience in design, construction, and management of
engineering projects throughout the State of Alaska John now oversees over $50M in infrastructure
projects as the Engineering Services Director for the Division of Environmental Health and
Engineering, Rural Energy Initiative. During his tenure as a P.E., he has completed more than 180
projects in 60 communities.
Both the City of Chignik staff and Tribal Council are very familiar with the project and its history as
it has been a priority for the City for a long time. The City and Tribal Council have been pioneering
the progress of this project and are continuing to do so by collaborating with multiple entities for
this current phase. The whole community of Chignik is familiar with and in support of the project.
Mayor Richard J. Sharpe and City Clerk, Rebecca Boettcher will both be City representatives and
are points of contact for the project.
CE2 Engineers have worked for tribal organizations, cities, state and federal governments, etc.
The firm has worked on several projects in Chignik such as the Chignik Harris Sub-Regional Clinic.
CE2 Engineers Inc. contracted Hatch Engineering to develop the feasibility study for the project.
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The firm is very familiar with the project as they contracted with Hatch and developed the feasibility
study. President Brian Aklin has managed a variety of projects ranging from public buildings and
power generation facilities to dams, treatment, collection and distribution facilities. The relationship
this firm has established with City of Chignik as well as their familiarity with the project will help
inform ANTHC throughout the project management of this phase.
Lake and Peninsula Borough staff have been informed on the project for quite some time and have
been actively tracking progress after each round of funding. The Borough Community
Development Planner will assist as a liaison for the project and will be a conduit of information for
all entities involved as needed. This role will also expand into fund seeking once this phase of the
project is complete.
See attached resumes.
4.1.3 Project Accountant(s)
Indicate who will be performing the accounting of this project for the grantee and include a resume.
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 financial accounting support.
The City of Chignik will be utilizing the accounting resources of ANTHC. Construction Controller,
Diane Chris, leads the accounting department of ANTHC’s Division of Environmental Health.
Accounting functions for DEHE are handled by 10 staff members comprising the Construction
Finance Department. Senior Accountants are designated to support any ANTHC Grant awards
including AEA financial reporting. Key staff resumes are included in this application.
ANTHC has a 16-year history of clean audits, conducted by an independent accounting firm in
accordance with the Single Audit Act.
4.1.4 Financial Accounting System
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 Renewable Energy Fund Grant Program.
The project finances will be kept in ANTHC DEHE’s Spectrum, a job cost accounting software. The
software accounts expenditures by phase code and cost types. Purchasing, contracting, and
accounting are the primary users of the system with the information always available to the project
team.
4.2 Local Workforce
Criteria: Stage 2-2.E: The project uses local labor and trains a local labor workforce.
Describe how the project will use local labor or train a local labor workforce.
To the extent possible, local labor will be utilized whenever possible during the delivery phase of
this project. Any training requirements for local labor efforts will be provided by ANTHC. As this
phase of the project is primarily engineering design and technical investigation it is not anticipated
that the local labor force will be available to fulfill the majority of the scope of this project at the
current phase. Should this project advance to the construction stage in the future, ANTHC utilizes
Force Account construction methods maximizing usage of local labor. Additionally, successful
construction of this project would require hydroelectric training for the power plant operator. It is the
intent of the City of Chignik to send the power plant operator to hydroelectric training put on by the
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Alaska Energy Authority in conjunction with AVTEC as a portion of the future construction phase of
the project.
SECTION 5 – TECHNICAL FEASIBILITY
5.1 Resource Availability
Criteria: Stage 2-3.A: The renewable energy resource is available on a sustainable basis, and
project permits and other authorizations can reasonably be obtained.
5.1.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available, including average
resource availability on an annual basis. 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.
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.
Based on the 2014 feasibility assessment final report developed by CE2/Hatch Engineering, an
estimated 63,500 gallons of diesel fuel could be replaced by reducing demand on the City’s current
power plant. Based on current electric demand, the proposed energy system has the potential to
displace 184,000 gallons of diesel fuel annually. A 385kW generator is recommended for the
project. Over the project’s minimum expected life of 50 years, this equates to potentially reducing
fuel consumption by nearly 10 million gallons. The current system has the current energy potential
of 470,000 kWh with the proposed system producing 2,140,000kWh.
Other alternatives resources explored by the community include wind power has been tested in the
past with unfavorable results. A wind study was conducted on Mud Bay Hill, located 2 ½ miles
north-northwest along the western shore of Anchorage Bay in Chignik. It was found that the area
has volatile winds and turbulence that make it unfavorable for the establishment of wind turbine
technology. Upon completion of the feasibility study, it was determined that the project is the lowest
costs alternative for electric energy generation for the community.
Hydrology data collection, considerations and modeling was conducted during the feasibility study
however it was recommended that continued data collection through the final design and permitting
phase. As part of the FERC requirements, monitoring of pipeline flows and gaging of stream flows
at the dam, pool, and bridge sites in Indian Creek were performed. Data compiled in the final
report, (Hatch, 2013 Monitoring Report) is the most recently collected, analyzed, and reported and
reports daily average stream flows for Indian Creek at the dam and bridge sites for all years.
Due to the geographic location of the City of Chignik, seasonal fluctuations affect water flow during
two periods of the year. The system will operate offline during late winter and spring based periods
of low water shown in, Tables 3-2 – 3-5, pages 11-12 of the feasibility study, illustrating monthly
flows for various sites with monthly, median, and peak flood data. The months in which the system
is expected to operate offline is considered nominal and the project will primarily operate on a
diesels off system.
5.1.2 Permits
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 describe potential barriers
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Applicable Permits:
FERC Licensing Consultation and Permitting– approach for project would be to seek capacity
related amendment to existing FERC permit est. timeline estimated at 52 weeks
ADF&G - additional study and permitting efforts should provide as much characterization of aquatic
habitat and species as possible including river survey data and photos. Estimated timeline: 10
weeks
ADNR – Application recommended to be submitted as soon as possible. Estimated timeline: 72
weeks. Temporary water use permits can be established for up to 5 year increments.
SHPO – Programmatic Agreement with FERC & SHPO developed and signed in 2005 as part of
relicensing effort included a requirement to develop a Historic Properties Management Plan put in
place, the City of Chignik has developed a draft of this document which has also been reviewed as
of April 2012. The City was unable to go further with the process in the earlier stages of the project.
This phase would enable the submission and approval of the SHPO for the project.
Local Permits - LPB is closely involved in the project and will review and issue all relevant local
permits necessary to conduct the project.
If during the finalization process of design and permitting it is identified that additional permits are
needed, ANTHC will ensure all necessary permits are obtained during the construction phase.
5.2 Project Site
Criteria: Stage 2-3.B: A site is available and suitable for the proposed energy system.
Describe the availability of the site and its suitability for the pr oposed 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.
The project site needs to undergo geotechnical investigations, surveying and engineering such as
LIDAR mapping to determine soil suitability for the proposed relocation of the powerhouse. Final
selection of the powerhouse site will be based upon FERC licensing, permitting, detailed
topographic (LIDAR) ground surveying, and geotechnical investigations (drilling or machine dug
tests pits). The City of Chignik owns surface rights to the all property identified in the feasibility
study for the proposed site. Completing the recommended mapping will inform the need for further
easements.
The final report of the feasibility study identifies all property associated with the proposed project
with detail attributing to the ownership of the surface estate of the parcel. The City of Chignik holds
title to all lands outlined in the proposed project subject to a restrictive easement for access to the
Indian Creek Quarry. Components of the proposed project, an access road and overhead power
transmission lines are not considered actions that unreasonably interfere with the ingress and
egress to the Indian Creek Quarry. In 2013, the City of Chignik improved access to the site by
pioneering a trail with a tracked excavator from the quarry to the dam.
5.3 Project Risk
Criteria: Stage 2-3.C: Project technical and environmental risks are reasonable.
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
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Potential risks not identified in the feasibility study will be outlined in detail during this final phase of
design and permitting. As noted in the study, LIDAR mapping of the reservoir and project corridor
will be necessary to further inform potential risks associated with the project. Stream gauging and
geotechnical investigations may provide a risk when evaluating various site conditions for the
project. Topographic surveys will delineate project property boundaries and inform future
easements.
Unknown site conditions for the location of the powerhouse may involve some technical risk
involving which will be addressed by determining the final site through FERC licensing, permitting,
detailed topographic (LIDAR) ground surveying, and geotechnical investigations (drilling or
machine dug tests pits).
Another risk includes the need the geotechnical investigation of the quality of talus slope material
for use as rock fill, drain material, and bedding material. The verification of soil depths, and
bedrock quality at the dam site, along the access road, and pipeline routes need to be identified
along with a source for the material. This risk was addressed by the evaluation of local sources of
material. Quarrying currently occurs on the south side of Indian Creek just north of the active
bridge and has reached an existing cat trail used to access the dam and penstock.
5.3.2 Environmental Risk
Explain 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 describe other potential barriers
ANTHC will consider all potential environmental concerns associated with this project as identified
by the feasibility study, recommendations from AEA, CE2 and associated agencies for permitting
purposes, etc. ANTHC is very experienced in utilizing the Indian Health Service environmental
review procedures for conducting environmental analyses of all health and sanitation facility
projects in all stages of development, as outlined in the IHS environmental review manual issued in
January 2007.
Threatened or endangered species:
A listing of all endangered or threatened plant and animal species for Alaska was obtained through
the USFWS. None of the species identified in the area a list of endangered or threatened animal or
plant species have critical habitat near the project. It was concluded that the project is not likely to
impact endangered or threatened species.
Habitat Issues
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In the resource agency meeting, the Alaska Department of Fish & Game identified that the project
will need additional studies to inform permitting and should provide as much characterization of the
aquatic habitat and species as possible which was recommended to include river survey data and
photos. The feasibility indicated no fish occurring in Indian Lake or immediately below the lake in
Indian Creek. The climate change driven changes in hydrology are not expected to significantly
impact aquatic productivity.
Wetlands and other Protected Areas:
No wetlands or protected areas were identified.
Archeological and Historical Resources:
Archeological and cultural resource assessment prior to ground disturbing activities. All water rights
associated with the dam are included in the study and are currently certified to the City of Chignik.
The City is also the owner of the FERC license for the project.
SHPO: The site will need a completed Historic Properties Management Plan which the City has
drafted but has yet to finalize and submit. The plan was started in 2009 and reviewed in 2012.
The Area of Potential Effect (APE) is defined in the regulations implementing Section 106 review
process as the geographic area or areas within which an undertaking may directly or indirectly
cause changes in the character or use of historic properties.
During this phase of the project, the City would submit the HPMP to SHPO.
Land Development Constraints:
The proposed project requires title or easement to the surface estate. Research conducted during
the feasibility study concluded that, all property associated with the proposed site is owned by the
City of Chignik subject to a restrictive easement for access to the Indian Creek Quarry. Ingress and
egress to the Indian Creek Quarry is not anticipated to interfere. The proposed reservoir may
occupy a portion of the unsurveyed section 24 wherein the surface estate is owned by Chignik
Lagoon Native Corporation. The plan to mitigate the issue involves topographic surveying in this
phase of the project to determine whether a future easement is required.
Telecommunications Interference:
None anticipated
Aviation Considerations:
LIDAR and other remote sensing topographic survey work to map the reservoir, the location of
property boundary locations for lands occupied by the project, especially the Indian Creek area
from the mouth to above the upper end of the proposed reservoir.
Visual, aesthetics impacts:
Visual and aesthetic impacts were not evaluated in the feasibility study however it should be noted
that after the recent completion of the Chignik Lagoon Hydroelectric Project the community has
cited, air quality improvement and noise pollution reduction as being two other factors significant to
the community since the installation of the new system.
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5.4 Existing and Proposed Energy System
Criteria: Stage 2-3.D: The proposed energy system can reliably produce and deliver energy as
planned.
5.4.1 Basic Configuration of Existing Energy System
Describe the basic configuration of the existing energy system. Include information about the
number, size, age, efficiency, and type of generation.
Three diesel generators comprise the current system and were installed in 2009.
The following describes these systems:
John Deere 6090, 7 years old, rated 230kW
John Deere 6090, 7 years old, rated 230kW
John Deere 4045, 7 years old, rated 117kW
The current system has the energy potential of 470,000 kW. The City of Chignik currently utilizes
diesel electric generation for 100% of its electrical needs. Chignik Electric, owned by the City of
Chignik operates the local power utility. The City also owns the existing hydroelectric project, with a
nameplate capacity for 60kW, which is currently not connected to the City’s distribution system.
The system was constructed in 1947 and primarily conveys raw water from Indian Lake to the
community of Chignik for drinking water.
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other: 3
generators
ii. Rated capacity of generators/boilers/other:
577 kW total capacity
iii. Generator/boilers/other type
John Deere
iv. Age of generators/boilers/other
7 years
v. Efficiency of generators/boilers/other
13 kWh/gal
vi. is there heat recovery and is it operational?
No
b) Annual O&M cost
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor $3.14/hour used for labor and non-labor combined
c) Annual electricity production and fuel usage (fill in as applicable)
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.
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i. Electricity [kWh] 916,407
ii. Fuel usage
Diesel [gal] 68,064
Other
iii. Peak Load 263
iv. Average Load 197
v. Minimum Load 146
vi. Efficiency 13 kWh/gal
vii. Future trends 2% annual electric demand growth rate
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
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5.4.2 Future Trends
Describe the anticipated energy demand in the community over the life of the project.
Energy demand for the City of Chignik has been projected to increase as the community continues
to seek the advancement of their marina. Lake and Peninsula Borough and City of Chignik have
been actively working to implement upgrades and additions to the current marina infrastructure.
Both entities are in a joint venture to construct a multi community dock facility and a boat lift which
will enable the City to a boat haul out facility. The feasibility study final report contains economic
analysis of load growth projected to increase at a rate of 2% a year. To a certain extent, it is likely
the high cost of diesel generated electric energy for commercial customers is a factor in the lack of
growth. Trident operates during the summer months which increases load demand for the City.
Currently, Trident only purchases energy from the City utility for the production side not supply side
of business. The company barges fuel into the City to run its own generators to run power for the
supply side. If cheaper electricity were available, Trident would most likely run the full processing
facility via City electricity and the new proposed system will be able to supply this demand. During
this final design and permitting phase loads growth projections will be evaluated with the
aforementioned economic development infrastructure considered.
5.4.3 Impact on Rates
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area over the life of the project. For PCE eligible communities, please describe the expected
impact would be for both pre and post PCE.
Rates for community and residential facilities are likely to see a benefit from the program through a
slight decrease in the costs of delivered power. Electric rates for residents using mor e than 500
kWh/month will see a significant reduction in costs. This cohort of users includes commercial
businesses, community facilities, State and Federal customers who are particularly non PCE
eligible commercial customers. The PCE fund will see benefits from the project through the
displacement of diesel fuel for electricity generation by lessening the reliance on the subsidy.
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
Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Integration plan
Delivery methods
The project will utilize a run of the river design. The proposed system is 385kW with a 63%
capacity factor displacing 98% of diesel generated energy with a 99.5% availability rate. The
existing hydro project is dated circa 1947 and serves as the community’s raw water source. The
project has the potential to provide power to the community however the system is not currently
connection to the distribution system. Due to the age of the dam, it is in imminent danger of failing
and is in dire need of both a replacement dam and pipeline infrastructure. The work outlined in this
phase request will fulfill the design and permitting needs of the replacement project. This proposed
project will meet the existing and future electricity demands for the city while also providing
improved water quality and overall safety for the community as critical infrastructure seeks to be
improved.
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This phase of the project proposes to confirm findings in the final report of the feasibility study
conduct final design and satisfy permitting requirements. The City of Chignik owns all lands
associated with the proposed site for the project. Environmental issues have been assessed in the
feasibility study with necessary permits identified. The project seeks funding to perform remaining
environmental assessment work, acquire necessary permits and final design.
The anticipated annual generation of the new system is 2,140,000kWh. Optimum installed capacity
is 385kW. The anticipated capacity factor is 63%. Final project capacity will be determined during
the design and permitting stage.
Anticipated barriers for this phase include permitting. The basic integration concept is to provide
the City of Chignik with a main power source via a run of the river hydroelectric facility with diesel
generation supplemented as needed. Delivery methods for the renewable energy resource will be
transmission line connection directly to the distribution system.
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]
Hydro 385 kW
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 2,140,000kWh
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
dry tons]
iv. Other Diesel fuel: 30,100 gal/annually
5.4.5 Metering Equipment
Please provide a short narrative, and cost estimate, identifying the metering equipment that will be
used to comply with the operations reporting requirement identified in Section 3.15 of the Request
for Applications.
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SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
Criteria: Stage 2-4.A: The project is shown to be economically feasible (net positive savings in fuel,
operation and maintenance, and capital costs over the life of the proposed project).
6.1.1 Economic Benefit
Explain the economic 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:
Anticipated annual and lifetime fuel displacement (gallons and dollars)
Anticipated annual and lifetime revenue (based on i.e. a Proposed Power Purchase Agreement
price, RCA tariff, or cost based rate)
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 economic model used by AEA is available at
http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. 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.
Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated
renewable energy project is, 16,642,511 gallons saving over $22M during the projected lifetime.
Tax credits are not expected to be beneficial to the project due to the City of Chignik ’s status as a
nonprofit entity.
City reliance on diesel fuel and the unpredictable nature of fuel prices is a main motivator for the
community and Borough to establish alternative and sustainable energy sources. The proposed
project will stabilize energy generation and costs, provide long term economic benefits to the City
of Chignik and improve a severely inefficient and outdated system which has the ability to supply
the city with both drinking water and energy.
Noneconomic benefits associated with the project involve the improvement of the community’s
water supply, promoting community stability and wellness due to a reliable and renewable energy
resource, and affordable energy which has potential to stop the outmigration of families unable to
afford to live in cities or villages in rural Alaska.
6.1.2 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
Proposed rate of return from grant-funded project
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.
LPB and the City of Chignik have begun the process of identifying potential customers which have
been estimated to include getting the current floating processor to reestablish business on shore.
Trident Seafoods had a fish processing facility on shore until a fire destroyed the structure in 2008.
Economic development initiatives such as the marina development projects in the City of Chignik
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such as a boat lift and boat storage area were also considered. A more detailed energy model as
to how these buyers/customers will effect energy loads and demand will be necessary to properly
size and integrate hydro into the community power production system. Chignik is expected to grow
in population as these economic initiatives stimulate job creation.
The City of Chignik is the owner of the local utility, Chignik Electric. The local electric utility supplies
power to the local school, local health clinic, and approximately 60 homes. The buyers/customers
for the sale of electricity will be the residents of the Chignik community, school, health clinic,
possibly Trident and other local businesses. The current electric rate for residential customers and
community facilities is $.49/kWh. Rates will remain at the current price until the system is in
operation for at least a few months to inform a sound adjustment based on the energy savings.
After a new rate is established, a percentage of the savings experienced through the efficiency and
use of the new system will be placed in an O & M account for replacements and repairs to the
system over time.
Energy output from the new system will be reviewed monthly while rates will be reviewed on an
annual or biannual basis.
6.1.3 Public Benefit for Projects with Private Sector Sales
For projects that include sales of power to private sector businesses (sawmills, cruise ships, mines,
etc.), please provide a brief description of the direct and indirect public benefits derived from the
project as well as the private sector benefits and complete the table below. See section 1.6 in the
Request for Applications for more information.
Reducing the cost of power production will benefit small businesses, public facilities, lodges, the
City, Tribe, boat harbor, and residents. Trident at current is the only large private business however
they only utilize City electric for fish processing support operations. Further analysis determining
sales to private sector businesses has yet to be determined.
Renewable energy resource availability (kWh per month) TBD
Estimated sales (kWh) TBD
Revenue for displacing diesel generation for use at private sector businesses ($) TBD
Estimated sales (kWh) TBD
Revenue for displacing diesel generation for use by the Alaskan public ($) TBD
6.2 Financing Plan
Criteria: Stage 2-4.B: The project has an adequate financing plan for completion of the grant-
funded phase and has considered options for financing subsequent phases of the project.
6.2.1 Additional Funds
Identify the source and amount of all additional funds needed to complete the work in the phase(s)
for which REF funding is being applied in this application. Indicate whether these 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.
Funding requested for Final Design and Permitting, Round 9:
FERC, aquatic and gauging work: $160,000
Geotech investigation: $175,000
Design estimate: $364,312.75
Historic Properties: $75,000
20% contingency: $170,862.55
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Project Management: $80,000
AEA Grant Request: $1,025,175.30
Project Management Match from ANTHC: $10,251.75
City of Chignik Match: $50,000
Total Design and Permitting Phase Cost: $1,085,427.05
The impact this phase of funding has on the project will enable it to move forward to construction
and commissioning. Timing of funding for the project can impact the permitting by extending the
timeline as to when applications and amendments are submitted to their respective agencies.
6.2.2 Financing opportunities/limitations
If the proposed project includes final design or construction phases, what are your opportunities
and/or limitations to fund this project with a loan, bonds, or other financing options?
A variety of funding sources at both the state and federal level such as DOE and Rural
Development funding will be pursued. A combination of grant/loan options will be considered to
fund the construction phase.
6.2.2 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
ANTHC has accounted for cost overruns related to potential changes in site conditions, unknown
or unforeseen issues, logistics, etc. and have included that projection into the costs requested for
the project.
6.2.3 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.
The project team (City of Chignik, ANTHC, CE2 Engineers, and LPB) plan to pursue a combination
of grant loan funding from a variety of sources, including the Department of Energy and USDA
Rural Development to carry out the construction phase of the project. The team will be working
actively to identify and plan to acquire construction funding to continue the project.
6.3 Other Public Benefit
Criteria: Stage 3-4.C: Other benefits to the Alaska public are demonstrated. Avoided costs alone
will not be presumed to be in the best interest of the public.
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, 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
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The project will promote or sustain long-term commercial economic development for the
community
In regards to developing infrastructure, an ORV road to the dam would be fully constructed as an
access road which would be a public benefit for the Chignik community. As of 2013, the City of
Chignik pioneered an access road from the quarry to the dam with a tracked excavator. The project
also supplies drinking water for the City of Chignik and would therefore benefit the public health of
the population by enhancing the water supply. The project also holds the potential to displace
nearly 100% of the City of Chignik’s electricity generation. Lower energy costs would help stimulate
both residential and commercial development and business establishment and growth in the
community. The construction phase of the project would bring local employment opportunities to
the community by stimulating job availability which would create a positive economic impact.
Reducing diesel engine maintenance, and increased electric energy security are two factors that
benefit the City and general population as well as the electric utility. Stabilizing power costs will
allow for improved operation of existing public services. Reduced fuel use, handling and storage
are environmentally related public benefits as well as reduced fossil fuel emissions and improved
air quality. Reduced fuel consumption directly correlates to the volume of fuel transported and
lowers the overall potential for fuel spills and contamination, another environmentally related public
benefit. Due to the area being primarily a fishing community contamination can destroy the
backbone of the local economy.
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SECTION 7 – SUSTAINABILITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
Include at a minimum:
Capability of the Applicant to demonstrate the capacity, both administratively and financially, to
provide for the long-term operation and maintenance of the proposed project
Is the Applicant current on all loans and required reporting to state and federal agencies?
Likelihood of the resource being available over the life of the project
Likelihood of a sufficient market for energy produced over the life of the project
Energy sales established by the City at the current rate will be utilized to fund the costs of
operations and maintenance. As the City experiences savings from the new system, excess money
from O&M costs will be put into a ‘replacement and repair account’.
The energy market is projected to increase for the City of Chignik as LPB and the City continue to
partner to conduct economic development projects such as the Chignik multi community dock
facility. Excess energy from the new proposed system can be used by commercial businesses in
Chignik. Cheaper energy is projected to attract more businesses to the area and thus sustainability
of the market is expected. The run of the river system has a strong likelihood of the resource being
available over the life of the project.
SECTION 8 – PROJECT READINESS
Describe what you have done to prepare for this award and how quickly you intend to proceed with
work once your grant is approved.
Specifically address your progress towards or readiness to begin, at a minimum, the following:
The phase(s) that must be completed prior to beginning the phase(s) proposed in this
application
The phase(s) proposed in this application
Obtaining all necessary permits
Securing land access and use for the project
Procuring all necessary equipment and materials
Improving the thermal energy efficiency of the building(s) to be served by the heat project
In September 2014 the final report from the feasibility study conducted by CE2/Hatch Engineering.
The study indicated that the proposed hydro project is the lowest cost option for electric generation
for Chignik and has a positive benefit to cost ratio under the expected range of scenarios.
The next phase recommended for the project recommended is, final design and permitting. The
project anticipates the Federal Energy Regulation Commission (FERC) licensing to be completed
through the application of an amendment to the current FERC permit licensed to the City of
Chignik for the existing dam site. Permits will be obtained during this phase from FERC, ADNR,
ADF&G and a SHPO finalized and submitted.
The City of Chignik owns the lands that are associated with the proposed project and also is the
owner of the FERC license for the current dam structure. ANTHC, the City of Chignik, and CE2
Engineers are ready to begin work outlined in the detailed budget provided as an appendix.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 27 of 30 7/8/15
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. The Documentation of support must be dated within one year of the RFA date of July
7, 2015
The community of the City of Chignik has advocated for project through to this point and has been
in support of this effort for quite some time. The City has historically made an effort in past REF
funding cycles to obtain funding for the project which has successfully assisted in funding the
development of the project to the current phase. The entire community is in favor of the City’s
pursuit for funding for the hydroelectric project. This has been a priority for the community
predating 1986 where City resolutions were established for the development of a hydropower
project. The City of Chignik owns the electric utility, Chignik Electric, an entity that is also very
supportive of the project. Stakeholders such as Trident Seafoods would benefit greatly from
decreased costs in energy in Chignik. The anticipated effects of this project include the
reestablishment of an on shore processor as the community lost the last cannery facility to a fire in
2008. The concept of this proposed design opens the community to the possibility of establishing a
hatchery in the future.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 28 of 30 7/8/15
SECTION 10 – COMPLIANCE WITH OTHER AWARDS
Identify other grants that may have been previously awarded to the Applicant by the Authority for
this or any other project. Describe the degree you have been able to meet the requirements of
previous grants including project deadlines, reporting, and information requests.
The City of Chignik was awarded $207,500 from the legislature during the first round of the
Renewable Energy Fund Program. These funds were used to complete the feasibility study on the
Chignik Hydroelectric Power System on Indian Lake. The project is a FERC licensed project and
occupies approximately 58 acres of lands primarily owned by the United States Bureau of Land
Management. The BLM conveyed all lands to the local native corporation, Farwest Inc. Farwest
Inc. has since transferred all land rights to the current owner, the City of Chignik. The City was
issued the FERC license on September 6, 2012 as a transfer order between the local corporation
and the City. The final feasibility study report was completed in September 2014 with funds from
the initial design and permitting phase of REF.
SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
In the space below please provide a list additional documents attached to support completion of
prior phases.
Resolution from City of Chignik circa 1986 identifying the need for development of a hydropower
project.
Final Feasibility Study Report developed by Hatch Engineering in September 2014.
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below please provide a list of additional information submitted for consideration
Letter of Support from LPB Assembly
Resumes from ANTHC/CE2/City of Chignik/LPB
Letter of Support from Chignik Village Tribal Council
Letter of Support from Trident Seafoods Corporation
Letter of Support Lake and Peninsula School District
Resolution pertaining to the transfer of FERC-620
Resolution authorizing Round 9 REF application
Quitclaim Deed and Far West, Inc. land conveyance letter
Quitclaim Rights to enter, occupy, and use land and easements associated with FERC Power
Project No. 620
FERC Order Approving Transfer of License
Utility Easement from Trident Seafoods granting the City of Chignik access to lands associated
with Project No. 620
Final Feasibility Study Report developed by Hatch Engineering in September 2014.
Chignik Bay Tribal Council
P.O Box 50
Chignik, Alaska 99564
Phone (907) 749-2445, Fax (907) 749-2423 e-mail cbaytc@aol.com
September 11, 2015
Dear Mr. Richard Sharpe,
We would like to express our support for the Chignik Hydroelectric Project. The community of
Chignik has a long history of hydropower which began over 60 years ago. However, the existing
infrastructure has deteriorated and is no longer functioning. Hydropower is a known
commodity and dependable source of renewable energy.
The Hydroelectric project will help offset the continued increase cost of living in the village as
well as keeping the air free of harmful pollutants. The survey and studies have shown no
impact on our wetlands, or historical resources and no danger to any species that inhabit our
area.
In summary, this project is important to the City of Chignik and the need for renewable energy
to displace the rising cost of fuel will greatly help the community.
Sincerely,
Roderick Carlson, President
Chignik Bay Tribal Council
907-749-2445
LETTERS
OF
SUPPORT
To: Alaska Energy Authority
From: Lake and Peninsula Borough on behalf of the City of Chignik Bay
Date: 8/19/15
Subject: Letter of Support on behalf of the City of Chignik Bay
Lake and Peninsula Borough Assembly supports and recommends the Chignik Bay
Hydroelectric Dam Project. This project will enable the City of Chignik to significantly reduce
and or eliminate their dependence on diesel fuel to produce electricity for the community. The
new hydroelectric facility will be able to produce power year round due to the unique geography
of Chignik Bay.
LPB will be applying on behalf of the City of Chignik to the Alaska Energy Authority’s,
Renewable Energy Fund program for the Round 9 funding cycle. The City of Chignik has been
steadfast in seeking alternative energy opportunities as they have applied themselves in the past.
The Lake and Peninsula Borough has been working with the City of Chignik and the Alaska
Native Tribal Health Consortium to formulate a collaborative strategy to manage the project. The
Borough is committed to working with our communities to create strategies and energy plans to
reduce the cost of living for our residents. The City of Chignik Bay is a community dedicated to
energy alternatives, economic development opportunities and collaborative initiatives to assist in
lowering the cost of living for residents of the community and raising quality of life. The project
will improve public health and increase energy efficiency of the infrastructure used by the
community.
The Lake and Peninsula Borough Assembly is in full support of the City of Chignik and
ANTHC’s partnership with the Borough Community Development Planner to apply to the
Renewable Energy Fund Round 9 funding cycle. Further, the Assembly urges the Alaska Energy
Authority to approve $1.025,175.30 M to fund the Chignik Bay Hydroelectric Project. The Lake
and Peninsula Borough Assembly asks that, this project become a priority for AEA as renewable
energy alternatives are a priority for the City of Chignik and the Borough.
Thank you,
Glen R. Alsworth, Sr.
Division of Environmental Health and Engineering
3900 Ambassador Drive• Suite 301 • Anchorage, Alaska 99508 • Phone: (907) 729-3600 • Fax: (907) 729-4090 • www.anthc.org
Fr
September 11, 2015
The Honorable Richard Sharpe
Mayor, City of Chignik
PO Box 110
Chignik, AK 99564
Re: Letter of Commitment for matching funds to a proposal for Alaska Energy Authority
Renewable Energy Funds Round IX
Dear Mayor Sharpe:
It is with pleasure that the Alaska Native Tribal Health Consortium (ANTHC), Division of
Environmental Health and Engineering (DEHE) is partnering with the City of Chignik in your
proposed hydro project to the Alaska Energy Authority (AEA) Renewable Energy Fund.
DEHE is committed to reducing costs of water and sanitation systems for community buildings
and homes, reducing energy consumption and providing sustainable public health infrastructure
that saves on fuel and health care costs, leading to healthier Alaskans. The Chignik Hydro
Project is one of exceptional importance to the future energy needs of your community and one
that ANTHC DEHE fully supports.
In s:upport of your project, ANTHC DEHE will commit an in-kind match of 1 % of the grant
funds requested in the application, for staff time to manage the project. ANTHC's matching
funds will be tracked and reported to AEA to meet the reporting requirements, if the award is
granted by AEA.
We wish you every success on your proposal and look forward to working with you on this
important project.
Sincerely,
ATTACHMENTS
DESIGN
BUDGET
Estimated by: Joe Hess
Date: 9/10/2015
EXPENSE ITEM UNITS QUANTITY UNIT COST AMOUNT
Project Work Plan
Airline Airfare and Car Rental job -$
Per Diem & Lodging trips -$
other job -$
other job -$
Subtotal -$
Conceptual Design Phase
Title Search job 1 500.00$ 500.00$
Airline Airfare and Car Rental trips 8 1,300.00$ 10,400.00$
Water Treatment Pilot Testing job -$
Per Diem & Lodging nights 20 150.00$ 3,000.00$
Subtotal 13,900.00$
35% Design Phase
Mailing & expediting job -$
Per Diem & Lodging days -$
Airfare trips -$
Subtotal -$
65% Design Phase
Mailing & expediting job 1 200.00$ 200.00$
Per Diem & Lodging days 8 150.00$ 1,200.00$
Airfare trips 4 1,300.00$ 5,200.00$
Subtotal 6,600.00$
95% Design Phase
Mailing & expediting job -$
Per Diem & Lodging days -$
Airfare trips -$
Subtotal -$
100% Design (Stamped Plans)
Mailing & expediting job 1 200.00$ 200.00$
Per Diem & Lodging days -$
Airfare trips -$
Subtotal 200.00$
Permiting Process 4,000.00$
Permit Fees (Plan Review, etc.) Lump Sum -$
Airfaire Each 4 1,300.00$ 5,200.00$
Per Diem & Lodging Each 4 150.00$ 600.00$
Subtotal 5,800.00$
Total Estimated Expenses 26,500.00$
The estimate includes only basic design services, topographical survey, and site control
Geotechnical and Hydrologic studies are estimated separately
Permitting Costs are estimated separately
Actual cost of liscensing and permits not included in design
Chignik Bay Dam, Water Supply, and Hydro-electric
Design Cost Estimate - Expenses
CKB-15-000
Assumes that project will have 4 submittals (Concept, 65%, Permitting, and 100%)
Airfaire - 2 Surveyors, Lead Civil, Lead Mechanical, Lead Electrical, Associate Civil with
Lake Clark Air, Present Concept Lodging -
12 Nights for Suvey + 2 Nights for Civil and Associate Civil + 1 Night for Mechancial and
Electrical Each + 1 night for Civil and Associate to Present Concept to Community
Assumptions
Assumptions
Airfair - Civil Engineer Trip and Possibility of 1 Extra 3 Day Survey Trip
Assumptions
Design Verification for Project Prior to 100% Stamped Plans
Sheet
Count Sheet Name
1 Cover
2 Table of Contents
3 General Legend
4 Community Schematic
7.5 Community Site Plan and Scope of Work
6 Survey Legend
7 Survey Control
8 Survey Easements
9 Geotechnical Site Plan
10 Borings
11 Borings
12 Civil Legend
13 Project Site Plan
14 Access Trail Site Plan
15 Access Trail Plan and Profile 00+00 - 10+00
16 Access Trail Plan and Profile 10+00 - 20+00
17 Access Trail Plan and Profile 20+00 - 30+00
18 Access Trail Plan and Profile 30+00 - 40+00
19 Access Trail Plan and Profile 40+00 - 50+00
20 Access Trail Plan and Profile 50+00 - 60+00
21 Access Trail Plan and Profile 60+00 - 70+00
22 Access Trail Plan and Profile 70+00 - 80+00
23 Access Trail Plan and Profile 80+00 - 90+00
24 Access Trail Plan and Profile 90+00 - 10+00
25 Access Trail Sections
26 Culvert Details
27 Gate Details
28 Silt Fence Details
29 Existing Conditions
30 Demolition Plan
31 Coffer Dam Plan and Section
32 Proposed Cutoff Wall and Abutments Plan
33 Proposd Site Plan
34 Penstock Plan and Profile
35 Drain Plan and Profile
36 Dam Isometric
37 Fill Section I
38 Fill Section II
39 Fill Section III
40 Drain and Penstock Trench Sections
41 Valve Vault
42 Bar Rack
43 Transducer Details
44 Abutment Concrete Details
45 Cutoff Wall Concrete Details
46 Face and Top Concrete Details
47 Spillway Details I
48 Spillway Details II
49 Walkway Pier I
50 Walkway Pier II
51 Walkway Pier III
52 Railings
53 Penstock Site Plan
54 Penstock Plan and Profile 00+00 - 10+00
55 Penstock Plan and Profile 10+00 - 20+00
56 Penstock Plan and Profile 20+00 - 30+00
57 Penstock Plan and Profile 30+00 - 40+00
58 Penstock Plan and Profile 40+00 - 50+00
59 Penstock Plan and Profile 50+00 - 60+00
60 Penstock Plan and Profile 60+00 - 70+00
61 Penstock Plan and Profile 70+00 - 80+00
62 Penstock Plan and Profile 80+00 - 90+00
63 Penstock Plan and Profile 90+00 - 10+00
64 Pipe Details
65 Connections at WTP and Turbine
66 Turbine Building Foundation Plan
67 Turbine Building Site Plan and Grading
68 Turbine Building Floor Plan
69 Turbine Building Elevations
70 Turbine Building Elevations
71 Turbine Building Sections
72 Tailrace Sections
73 Site Details
74 Hydrant Details
75 Turbine Building Details I
76 Turbine Building Details II
77 Mechanical Legend
78 Turbine Specifications and Design Criteria
79 Turbine Layout in Building
80 Reference Sheets by Turbine MFR.
81 Reference Sheets by Turbine MFR.
82 Reference Sheets by Turbine MFR.
83 Reference Sheets by Turbine MFR.
84 Reference Sheets by Turbine MFR.
85 Electrical Legend
86 Overall Site Plan
87 Turbine Building Site Plan
88 Turbine Building Lighting and Power
89 Panel Board
90 Electrical Details I
91 Electrical Details II
92 Reference Sheets by Turbine MFR.
93 Reference Sheets by Turbine MFR.
94 Reference Sheets by Turbine MFR.
95 Reference Sheets by Turbine MFR.
96 Reference Sheets by Turbine MFR.
97 Breach Parameters
98 Inundations Maps I
99 Inundations Maps II
100 Inundations Maps III
101 Inundations Sections I
102 Inundations Sections II
103 Inundations Sections III
104 Funding Map
Estimated by: Joe Hess
Date: 9/10/2015
STAGE Man-Hrs Labor Costs Expenses A/E Subconts. Total Costs Schedule Date
Project Work Plan 0 -$ -$ -$
Conceptual Design Phase 740 87,065.19$ 13,900.00$ 100,965.19$
35% Design Phase 0 -$ -$ -$ -$
65% Design Phase 1,085 133,588.36$ 6,600.00$ -$ 140,188.36$
95% Design Phase 0 -$ -$ -$ -$
100% Design (Stamped Plans) 750 86,951.79$ 200.00$ -$ 87,151.79$
Engineering Permits 255 30,207.41$ 5,800.00$ 36,007.41$
Total 2,575 337,812.75$ 26,500.00$ -$ 364,312.75$
Design and Construction Schedule
Project design activities are expected to begin as soon as funding is available. No target dates have been set.
Chignik Bay Dam, Water Supply, and Hydro-electric
Design Scope of Work
This project includes the design of a new concrete face, rock fill dam, access upgrades, a new water supply pipe, and a new hydro-
electric turbine.
Scope of Work and Design Budget
Design Budget
PRESIDENT / PRINCIPAL IN CHARGE $135.00 / hr.
Brian Aklin
SENIOR ENGINEER $179.00 / hr.
Chuck Eggener, P.E.
SENIOR DESIGN ENGINEER / PROJECT MANAGER $155.00 / hr.
Paul Weisner, P.E.Mike Erdman, P.E.John Klovning, P.E. (WI)
MANAGEMENT CONSULTING / GRANT WRITER
Brian Davis $113.00 / hr.
PROJECT/CONSTRUCTION MANAGER
Jerry Clifton Jeff Juelson $121.00 / hr.
ENVIRONMENTAL PERMITTING/PROJECT COORDINATOR/TECHNICAL WRITER $113.00 / hr.
Anne Herschleb Susan Mitchell
CERTIFIED SAFETY PROFESSIONAL $162.00 / hr.
Eric Shortt -$
Office Rate Field Rate*(6 ea, 10 hr days)
CONSTRUCTION SUPERVISOR / CORE CREW $93.00 / hr.$124.00 / hr.
Garry Bowley Ray Kase Patrick Murphy
Mick Bradford Lee Keel Gary Nelson
Tim Colberg Dave Konen Dan Trumble
Roger Futrell Shane McCauley Mike West
John Harris Matt Medina Bob Zeitler
* Supervisor/core crew hours over sixty (60) hours per week shall be billed at:$146.00 / hr. - OT
CONSTRUCTION SURVEYOR
Jeff Juelson (with equipment)$135.00 / hr.
* 1-Man Survey Crew hours over sixty (60) hours per week shall be billed at:$156.00 / hr. - OT
SURVEY 2-man Crew $167.00 / hr. - ST**
** 2-Man Survey Crew hours over sixty (60) hours per week shall be billed at:$210.00 / hr. - OT
CAD DRAFTING $110.00 / hr.
PROJECT ACCOUNTING / CLERICAL $73.00 / hr.
PROCUREMENT AND PURCHASING $78.00 / hr.
EXPEDITING AND MILEAGE $55.00 / hr.+ 0.58 / mi.
SUBCONTRACTED SERVICES Cost + 15%
TRAVEL, TELEPHONE AND OTHER DIRECT EXPENSES Cost + 15%
CE2 Engineers, Inc.
2015 FEE SCHEDULE
Updated 04/01/15
Payment terms are net 30 days. A 1.5% per month late payment fee will be assessed on any unpaid balance remaining after 30 days.
CE2 reserves the right to promote individual employees at any time. Upon promotion to a higher job classification, the higher
billing rate will apply. We reserve the right to adjust our fees during April of each year based on the change in the Anchorage
Consumer Price Index for the previous calendar year. We also reserve the right to charge an annual fee of up to $1,500 for
utilization of CE2's shop and yard facilities to support active force account construction projects. This fee will be included on the
first billing following start of on-site construction for all projects where the estimated value of construction performed during that
calendar year exceeds $300,000.
P.O. Box 232946 • Anchorage, AK 99523-2946 • (907) 349-1010 • Fax (907) 349-1015