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Home My WebLink AboutREF Round IX Application FINAL.docxRenewable Energy Fund Round IX Grant Application -Standard Form 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. A separate application form is available for projects with a primary purpose of producing heat (see RFA section 1.5). This is the standard form for all other projects, including projects that will produce heat and electricity. An electronic version of the Request for Applications (RFA) and both application forms is 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 • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases (e.g. final design, construction) for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for each phase of the project. • 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. AEA 15003 Page 1 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form for each project. I ·· .. AI ASW 2 ~ENERGY AUTHORITY • Multiple phases (e.g. final design, construction) for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for each phase of the project. • 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. AEA 15003 Page 2 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I ·. A' Aa&t 0 ~ENERGY AUTHORITY • 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. AEA 15003 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. Page 3 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form Tax ID # 926001151 ,~ Tax Status: D For-profit D Non-profit !ZI Government (check one) Date of last financial statement audit: FY ending 2014 Mailing Address: Physical Address: PO Box 360 300 Front Street Hoonah, AK 99829-0602 Hoonah, AK Tele hone: Fax: 907-945-3663 907-945-3445 1•1.1 AppliC:ant.Point ofC:ontaciLGr;illts.llllanager .... ·. Kenneth K. Skaflestad I Name: Title: Mayor Mailing Address: PO Box 360 Hoonah, AK 99829-0602 Telephone: Fax: Email: 907-945-3663 907-945-3445 mayor@cityofhoonah.org 1 ;1.1 .. · · APPl.ICANTSIGNATClRYAUTHQRiiYCQNTACT.•INFORIV/ATION > ············.····•·•····· .. ··.·······.············< .••....•..... ·.·· I Name: Kenneth K Skaflestad T1tle: Mayor Mailing Address: PO Box 360 Hoonah, AK 99829 Telephone: Fax: Email: 907-945-3663 907-945-3445 ma)lor@cityofhoonah.org 1>11 2 .. ·.··Applicant Alternate Points of Contact> .. Name Telephone: Fax: Email: Janette Keiser, PE, JD 206-714-8955 206-971-5070 jan@keisergroup.com AEA 15003 Page 4 of34 7/8/14 I I .. Renewable Energy Fund Round IX Grant Application -Standard Form I · A I frR!?it\ 7 ~ENERGY AUTHORITY 1:2 )I.Ji!>lif~l'lflVIl~irnuw.Re 9 llir~lflen.ts •... .<····· > ) •· ...• ·.·• · ..•.•.•....•. ·· .•.••••..•. ·.· .. ···• ••..••.. ·· ..•••.••..•.•..••.•.•. · •. ·•· f?l~as:S,~h~qk}l#.appropriat~,·.Jtappirc.<i!Jts • .cJp.·{J.o.CriJeetth~rnlfllmumreC/uifernel1ts,.thf7fP/Jlic?trO.HD.•·· Jlllill.bereJi~cter:L> ··········.·.··· ·· ····.· ·· ·· ·· ···· ·... •> :.··· ······ ·· .. · .. · ···· ····· ····· ··· ··· ·· ·· ··· ·· ······· ···· · ··· ····.··.······· · ······· ···· 11.2.1 Applicant Type D An electric utility holding a certificate of public convenience and necessity under AS 42.05, or D An independent power producer in accordance with 3 AAC 107.695 (a) (1), or ~ A local government, or D A governmental entity (which includes tribal councils and housing authorities) 1 •. ~\~PP~IS).r-,!TMININ!J)IVJ ~~QUIREMENTf).(cori!illiJed} Plfla$.<Jcheck.<J.s 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 httJ2://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) AEA 15003 Page 5 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I ·· .. AI f\6tEM , ~ENERGY AUTHORITY ····~·i1·•~r:Qi~ptTitl~······i········································.·····························•·•·•···· .. ··········•···•·•·.· i ................... ·.:·.··.··•·········•······•::t ....•.. ·•••··· .. ·.··:::>•.:· F'.rovii:fe a !I to.7word·.title.for.yourpraject, ··r'//?~111. ih~···sp~c~'b~iaw}········,······· ... I Hoonah Waste-to-Energy Project 12.2: f"roj~cfl.ot:a~ioll··•··· ··. · ....... • ••·•I 2.2.1 Location of Project -Latitude and longitude (preferred), street address, or community name. Latitude and longitude coordinates may be obtained from Gooqle 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. 158.100280, -135.397327 2.2.2 Community benefiting -Name(s) of the community or communities that will be the beneficiaries of the project. I Hoonah, Alaska 2.31''rojecftype.< ..... ·•························••••·•····•· Pte8.sa check as appropriate. I 2.3.1 Renewable Resource Type 0 Wind 0 Hydro, Including Run of River 0 Geothermal, Excluding Heat Pumps 0 Solar Photovoltaic IZI Biomass or Biofuels (excluding heat-only) D Hydrokinetic IZI Transmission of Renewable Energy D Storage of Renewable lo Other (Describe) D Small Natural Gas I 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction D Reconnaissance IZI Final Design and Permitting IZI Feasibility and Conceptual Design IZI Construction AEA 15003 Page 6 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form ····~'~·····-~rgj~<:tQ~~cf.[pti§il··········•·•····•·•.··•········••••·••) •·· /•••••••··· ) /·•·•.·••······•·····.········•····· ·••••ex.·.····•·····•·•·.·••••····•· •·-·· · Prol!id~ abri~fonf!paragrapb description Qfthe.prqpose_i:Jp(ojeot; · · · · The project involves the development of a waste-to-energy facility that will use the process of anaerobic digestion ("AD") to generate methane from waste water biosolids and other biomass feedstocks and then burn the methane to generate electricity. The project includes the design and construction of the AD facility, a transmission line to convey electricity to the City of Hoonah and ancillary facilities to dispose of digestate by-products. The project is being developed by the City of Hoonah, in close collaboration with the Hoonah Indian Association ("HIA"). •·2.5 scopeot.Work""··· ·•.·.·••·····.··.···.···.··· ····-····•······•·········•·····• i F'?ovidfa•·~cope. o{vyork detafl.in~th¢t~~k~ f() b~ peiforrned uhti~ftbi~·fun.diH~···requ~st.·_Tbis_ •••.••.•• _.·.···· .. _ .••.••. • Sl;lpuip inc[udework•paidfO[by_ grant fundS •. and Jnatchjng}unds orpeiforl)'led (lS in~kind trl!l!Qp; < •• ·. ··• Funding is requested to perform the following Scope of Work: 1. Phase-Feasibility and Conceptual Design a. Develop Economic Model In Progress I. Estimate Capital Costs 11. Estimate Operating Costs Ill. Estimate Revenues IV. Develop Pro Forma b. Develop & Execute Feedstock Agreement(s) I. Develop Proposal re: rate structme 11. Submit Proposal to City/Borough of Juneau ("CBJ") iii. Negotiate Rate Structme, Terms & Conditions IV. Execute Feedstock Agreement(s) c. Develop & Execute Off-take Agreement(s) I. Develop Power Distribution Plan 11. Negotiate Power Pmchase Agreement(s) Ill. Execute Power Purchase Agreement(s) d. Conceptual Design i. Negotiate Project Development Agreement 11. Negotiate Technology Agreement Ill. Finalize Site(s) IV. Conceptual Engineering e. Community Outreach 2. Phase -Final Design & Permitting AEA 15003 Page 7 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form a. Permitting b. Final Engineering 3. Phase -Construction (and Commissioning) a. Construction I. Hire Project Construction Manager ll. Develop Construction Plan iii. Construct Civil Works IV. Construct transport facilities v. Fabricate technology equipment VI. Transport technology to Hoonah Vll. Install technology viii. Construct Ancillary Works b. Commissioning 1. Develop Operations & Maintenance Plan u. Develop Testing & Commissioning Plan m. Conduct Testing & Commissioning IV. Hire & Train Workforce ll~~g~m!PN'a'~,t>J'.oJ~~f:ooari!19liffiei'lfi;Jp~vetoi$m~fi~~safi&Ya'pe'£a!lo!l!ftJ:IJ~~~?~i~1t~IJJ~~~J~:f~,i•~:ll ;J,1······~ch~dlll,e~n~· .. ' .. ~i.l§st§'J~S,'·, .. c .......................... , ......... <'' .. ····,············•xi .................... ,} ............. ; ...... ,; .. )........................... .. ; ........... , .. Crit~fia: $tag~ ?-fA: Th~ propi:is~C!•sctwgul~ isclet;J(, realistic, an([ q~sr:rib~gin adequ.atedetail,•.• · 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. Start End Milestones Tasks Date Date Deliverables Phase-Feasibility & Conceptual Design • Estimate capital costs • Capital Budget • Develop • Estimate operating costs • Operating Budget Economic Model • Estimate revenues • Profit/Loss Statement • Develop Pro Forma • Pro Forma 8/15/15 12115115 • Develop & • Develop Proposal re: rate • Proposal Execute structure • Rate Structure Feedstock • Submit Proposal to • Feedstock Agreement Agreement( s) City/Borough of Juneau ("CBJ") • Negotiate Rate Structure, 8/15/15 12/15/15 AEA 15003 Page 8 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form Terms & Conditions • Execute Feedstock Agreement( s) Develop and Execute • Develop Power Off-take Distribution Plan Agreement( s) • Negotiate Power Purchase Agreement( s) • Execute Purchase Agreement( s) Conceptual Design • Negotiate Project Development Agreement • Negotiate Technology Agreement • Finalize Site(s) • Conceptual Engineering • Community Outreach Phase -Final • F ina! Engineering Design & Permitting • Permitting Phase- Construction (and Commissioning) Construction • Hire Project Construction Manager • Develop Construction Plan • Construct Civil Works • Construct transport facilities • Fabricate technology equipment • Transport technology to Hoonah • Install technology • Construct ancillary works Commissioning • Develop Operations & Maintenance Plan • Develop Testing & Commissioning Pian • Conduct Testing & Commissioning • Hire & Train Workforce 8/15/15 8/15115 7/1/16 8/30116 10/1/16 AEA 15003 Page 9 of34 • Power Distribution Plan • Power Purchase Agreement 12/15115 • Project Development Agreement • Technology Agreement • Conceptual Drawings and Specifications 12/15/15 • Plans and specifications issued for construction • Permit Applications 8/30/16 • Permits • Construction Plan • Anaerobic Digestion Equipment furnished and installed • Civil works installed • Ancillary Works installed • Transport facilities constructed 12/30/16 • Operations & Maintenance Plan • Testing & Commissioning Plan • Test & Commissioning Reports 12/31/16 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I i. AI fr'ifNt 9 ~ENERGY AUTHORITY :J,g 13Fdget; · , ... · .. · .· :··.·.·.: ... · ... ·.·;; .. ,, .. ···· ;·.:·:·;;· .. , .. ;.; i.i····i. ,>;:·;.··.;:.·:; i:•·•·'.': :·:·· ... :· .i .. /.i•·i····:;·. ·.;;>:·.·.·:·.···;.: •.. ; ••• ,i i.·.·····;·.;·.;· .. ·i;.· ..• i: • ··•(]~iteria,'~t~~fJ f!c1.EJ:·;Thfl.; po;sJ ~suwates; fo( p~oject .. ci~vetoprp()nt,op~(atipn;maint~nlclhp~,·•tu#l, · lclnd qtljer.projectitems meetini:/ustr;ystandards or are othl;irwisejustified. > . . . . . .. . . . .· .·. 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 (Legend-HIA -Hoonah Indian Association; JKA -J. Keiser & Associates; COH-City of Hoonah; Lydig - Lydig Construction; BF-BioFerm) Task Milestone Reconnaisance (completed) • Project Ideation • Due Diligence Feasibility & Conceptual Design • Develop Economic Model • Develop & Execute Feedstock Agreement • Develop & Execute Off-take Agreement • Conceptual Design • Community Outreach Final Design & Permitting • Permitting • Final Engineering Construction (&Commissioning) • Hire Project Construction Manager • Develop Construction Plan • Construct Civil Works • Construct Transport Facilities • Fabricate Technology Equipment • Transport Technology to Hoonah • Install Technology • Construct Ancillary Works • Develop 0 & M Plan • Develop Testing & Commissioning Plan • Conduct Testing & Commissioning • Hire & train Workforce Total Estimated Costs Est. Cost $75,000 $15,000 $60,000 $195,000 $35,000 $35,000 $27,000 $88,000 $10,000 $500,000 $ 50,000 $450,000 $4,789,000 $ 2,000 $ 30,000 $ 1,000,000 $ 100,000 $2,000,000 $ 100,000 $ 1,000,000 $ 400,000 $ 20,000 $ 20,000 $ 60,000 $ 45,000 $5,559,000 AEA 15003 Page 10 of34 Services by: Nature of Funds JKA JKA, HIA, COH Lydig, BF, JKA HIA, COH, JKA HIA, COH, JKA Lydig, BF, JKA HIA, COH, JKA Lydig, BF, JKA Lydig, BF, JKA in-kind HIA funds in-kind in-kind in-kind in-kind in-kind in-kind, grant in-kind, grant 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form 3.2.2 Budget Forms I ··· .. ALoe& 3 ~ENERGY AUTHORITY Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (1. Reconnaissance, II. Feasibility and Conceptual Design, Ill. Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail your proposed project's total budget. Be sure to use one table for each phase of 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 emai/ing the Grants Administrator, Shawn Calfa, at scalfa@aidea. ora. $ $ $ $0 $15,000 $15,000 AEA 15003 Page 11 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form Develop Economic Model $6,000 $0 $ 1,000 Conceptual Design $0 $ 10,000 AEA 15003 Page 12 of34 $ 6,000 HIA, COH $ 1,000 JKA, HIA, COH $10,000 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form AEA 15003 Page 13 of34 I ·. AI AftSB& 7 _,ENERGY AUTHORITY 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form Construction $0 $ 2,000 Develop Construction Plan $ 42,000 $0 $0 $0 AEA 15003 Page 14 of34 I ··.AI co/¥ r ~ENERGY AUTHORITY JKA, Lydig BioFerm, JKA, , HIA BioFerm BioFerm $ 2,000 $ 30,000 $ 20,000 $ 20,000 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form 3.2.3 Cost Justification Indicate the source(s) of the cost estimates used for the project budget. Costs were compiled as follows: • Design and Construction costs-from Lydig and BioFerm • Travel and Labor costs derived from actual costs • All other costs estimated by Janette Keiser, PE JD-J. Keiser & Associates LLC 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 $5,282,000 Cash match to be provided $ 122,500 In-kind match to be provided $ 154,500 Total costs for project phase(s) covered in application (sum of above) $5,559,000 3.2.5 Total Project Costs Indicate the anticipated total cost by phase of the project (including all funding sources). actual costs for completed phases. Reconnaissance $ 75,000 Feasibility and Conceptual Design $ 195,000 Final Design and Permitting $ 500,000 Construction $4,789,000 Total Project Costs (sum of above) $5,559,000 3.2.6 Operating and Maintenance Costs Use O&M costs can be estimated in two ways for the standard application. Most proposed RE projects will fall under Option 1 because the new resource will not allow for diesel generation to be turned off. Some projects may allow for diesel generation to be turned off for periods of time; these projects should choose Option 2 for estimating O&M. Options O&M Impact of proposed RE project Option 1: Diesel generation ON For projects that do not result in shutting down We estimate the waste-to-energy project will diesel generation there is assumed to be no require approximately $2,302,160 per year in impact on the base case O&M. Please indicate projected 0 & M costs but will generate the estimated annual O&M cost associated with sufficient electricity to power several major city- the proposed renewable project. owned buildings. Option 2: Diesel generation OFF For projects that will result in shutting down diesel generation please estimate: 1. Annual non-fuel savings of shutting off n/a. This project is not intended to replace the diesel generation energy generated by IPEC, the current power 2. Estimated hours that diesel generation producer, but to supplement it. will be off per year. 3. Annual O&M costs associated with the proposed renewable project. AEA 15003 Page 15 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I ·· .. AI &'i'M ~ENERGY AUTHORITY ·.3.3~ P,l'6ject·~~rrinlu"'J(;;tti~ns·.••·· '·.•/yZ.;····•·• ··••c•< <·'·:·•/·•• /·;••·••• ••••·\.z .. ··•·•·····•·•·•••••·••·•••·••·•·.•r••··••••·····.:;••••"••••>••·••••• + <!.· •· .Qriteri<J; ?t<~f1i1••?-1 • .Q: The ••r;~pplicaqt~.·• cgm/!'le?i~at(()ns.ptaq,JnqtvW?r1 .• lT!g0ttpring aflciireqo.rting: {s d.e§c(ibed.frLacf.eqtlate.;;c:lij{r;~it.·•••;••·L• •• •••····•··:i <... :·•··.··•·••·······•·•P i •..•.••... · .• <··••·······• .... ··•·•······ ... · ... ···········•···· .. ••·.·< /····•········ · Desr:;ribe, ho.vv ypup/an to monitort!Je projectandkeep the AufMritYinfort11ed oftbe ~talus. '• ·· ·· a. Scheduling Tools-We will use Microsoft Project®, or a similar Critical Path Network software, to track activities, durations and progress throughout the Project We will use this tool to identify issues that need to be addressed. We will provide the Authority with copies of this scheduling tool and its updates. b. Progress Reports -We will produce Monthly Project Progress Reports that will contain qualitative and quantitative information pertaining to the project performance for each month. We will distribute copies of these Reports to the Authority. c. Progress Meetings -We will hold weekly Project Progress Meetings, inviting relevant stakeholders, to discuss the Project The Authority will be invited to participate in these meetings, either in person or by conference call. The Authority will also receive copies of Agendas and Minutes. d. Project website-We will create a Project Website, which we will make available to the general public. The website will contain information about project progress, subcontractor/vendor opportunities, job openings and other news about the project We will provide the Authority with access to this website. 3.4 ppilratioriai·Logistics ···· .. •···.·········•··< .• ·.:···· <•·.;• ?\•·.·.·· i \i t /;> )·······•· 1> c Crit~J'ia::.·'·.·waae·.~-1 .• p:······.Logfst@J, ••.•. /Jpsiness,, •... ··an,(}2.tina(lcial .•••. atrangerpeHt~ fqr_, .. opera,ting•· •. •an.d rnaintiliryng th,e p~ojectthrqt1ghout1ts)itetil]le and.. se!fing lflDeW(from the C()l1JPlet~dproje?lWe rea$onable··i1qcf..desr;riped.JI].;.adeguate detail .•.••.•. r•························· .................................................... · ·• ... · .. ·.·•·•• .• ............................ ·.·.·•····•·······.····•···· ...•. · .....•..•.•. pescri[Je the_. ahticipated · .. ·lqgi;,tfc<~l, bljsire~s, •••··and finq.nciat.·· .. ilff<J(l!Jeme.nt~' ..fol' ope.rilti.ng 811d maintaini/'lg the. project{hrougbo{jt its lifetiQJe ilnd selling energytrowthe completed project;} .. · •··· The Waste-to-Energy Project will produce several products. First, we will produce electricity. Electricity for commercial and institutional customers is Hoonah is about $.64 per kwh. Our initial analysis indicates that at this rate, the financial model demonstrates positive outcomes for the city of Hoonah. We are in the process of refining our economic model to verify our early assumptions and determine rates. The immediate goal is to use the electricity to power several public facilities owned by the City of Hoonah. We are in the process of developing the terms of a power purchase agreements. Further, we will negotiate with the local power producer, IPEC, to enable the power to enter the grid. Developing the details of these Power Purchase Agreements is included in our Proposed Scope of Work. AEA 15003 Page 16 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I · .. Second, we will produce a solid by-product, called digestate. This material is a good soil amendment. Our goal is to use this material to a 3-acre agricultural park, where cash crops, such as peonies, can be grown. We are in the process of collaborating with peony farmers in the Palmer and Homer areas for technical and operational assistance. Developing the details of this arrangement is included in our Proposed Scope of Work. In addition, we will generate revenues through tipping fees, to be paid by the City/Borough of Juneau for biosolids disposal. iJ.1,iPr~je~f'J"~a!lJ • c· .. ;e,.,..•••••>••·•••<\/ ! \{\ 2 ;< ;~~···· .......... :; •\;i'?•···· Criteria: ~(119.¥ g-2.A: The !jpplic;~nt, paitp,e'rs, f!n(Jiqrcpntractor~}]av;e 'SUf(ipient tnr1Jrtectgf) WJ(;{ f1)(Pf}rifjllffj(O~(J(J9,f)SS([JI/y••Cc:Jrpp/etr:!1(1(J.·()p!Ji'Ctff)/he.p(Qject_Jf.t/;I!Ji;·t;~pPliqap,tfl.~~q(Jt}'fJt¢hp$etJ'··9·' pontraci()[:. t()·;.(JQ,/'TJPletf) tf1~ work, qu~:Jiifiqf!_li()ns, ~ntj.·e,xpf)ri~!Jce; .. 'RQ,Ints; vv!!i .•.. 1Jf1·····/J,9,S,!JC{ ..• o(l;;·. th~ · ·· (lpplic;ant's c,ap?f!IYt();'~uc,pessfulfy·;S.elfJct c,ontr<Jc;tors.•·aQc:f TTI~tJ!1.9.e ·CPfTIRI%•(;()ntr~c,fs.·••··········•··· .... 9_ritf)ria:.~f!1ge,;?72.P,:7]1eJ}rojectite.~[ljb~•s staf[ing, firne,aMot/;l~rresg~rpf)stg sucq~s,sff!l/y···i .•..•••.•• ··.c()/'l)p!ete. ant{ ()pwa,te .• th,e,p[OJf)c;( ... ··•··•·•········ >·.···•·•····•· ··•···••····.··········••··•·•.························••·•-···••····· .•. ; .•. · ;.•·•··•·•·•··· \ · ... ·•····••··· ,. > ;· .. ·,·•.···••····•·. ·•·•••·•· ;. ····•••· •· priteU~:. §~8.ge·.g-2.;C:/Tfrle;p(Ojer;t,•tfJafTI}~a1Jie.tp,ur1c1ers,tanfJaWlf!ctdre.s,s,, te,¢.'11Jfc;af, ··ec,on()fTiic,·.·';Jn(J f)nv)ronrr~eiJtal b~rrieistq succf1s,sfl!lp(ojectppmple(ionaf1(} oper.<Jtioq. ·· · · · · · · · · ·· ·Criteria:. S(age 2·2.P:Theproject tei;lm h!1S,'positive pastgrante::<perience. · 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. Janette ("Jan") Keiser, PE, JD will serve as Program Manager. Jan is a civil engineer and construction attorney with over 30 years of experience working on complex public works infrastructure projects. Jan's resume is attached. I 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; • how well the project team is able to understand and address technical, economic, and environmental barriers to successful project completion and operation. AEA 15003 Page 17 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I ·· .. A1 &SSt\ -a _,ENERGY AUTHORITY 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 Project Team will include: a. Program Manager-Janette ("Jan") Keiser, PE, JD (resume attached) Contact Information: J. Keiser & Associates Attn: Janette Keiser, PE, JD 15715 Virginia PI Rd Poulsbo, WA 98370 jan@keisergrou(2.com mobile-206-714-8955 b. Design Builder-Lydig Construction www.lydig.com. Lydig has decades of experience building industrial facilities in the Pacific Northwest, including Alaska. For example, Lydig is currently working on a $50 million energy efficiency project in Fairbanks, AK for the US General Services Administration. Lydig's Statement of Qualifications is attached. Lydig Construction Attn: Mark Conway, Vice President 3180 1391h Ave. SE, Ste 110 Bellevue, WA 98005 mconway@lydig.com telephone: 425-885-3314 b. Technology Provider-BioFerm Energy Systems. www.BIOFermEnergy.com. BioFerm is the U.S. subsidiary of the Veissmann Group, one of the largest energy-related businesses in Europe. BioFerm's Statement of Qualifications is attached. BioFerm Energy Systems Attn: Christine McKiernan 440 Science Drive, Suite 300 Madison, WI 53711 MccH@biofermenergy.com 608-467-5523 c. Engineering -Doug Murray & Associates -a Juneau-based mechanical engineering firm with expertise in biomass-energy projects. Murray & Associates, PC Attn: Doug Murray, PE PO Box 21081 Juneau, AK 99802-1081 907-780-6151 AEA 15003 Page 18 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I 4.1.3 Project Accountant(s) I ··.. A I J\fi!3:t ~ENERGY AUTHORITY 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. We have not yet selected a Project Accountant. We will recruit a Project Accountant with experience in construction cost accounting from the Juneau area. I 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. We will use Generally Accepted Accounting Standards for public works construction projects, particularly following the guidance set forth in the Federal Acquisition Regulations ("FAR") pertaining to design-build projects. Ms. Keiser and Lydig Construction are well familiar with these standards, having worked on numerous public works projects, involving federal, state and local funding, where such standards are employed. A 2.(Local .• 'ltJe>rk.force'•····•·•··•··•········>·············i·•··•·-··-·i.•··.• .......................... _ .. ·.·.•··••/>········ ·········-···· ... ·-······················•·-·•·.··-·····;···················•··································•·•·'•· .. ·.••••••·:···.········•••··••-•··· Qrtteria: :Stage•2~2£:•Theproje_ct.(}se_~local.Jaborau:dtrains§J/gqal/!1bgr.w.orH[orqe_,; •.·· ·· ·. Describe how the project will use local labor or train a local labor workforce. Local labor will be used in the construction and operations of the Project. For example, we are working with Doug Murray because we want to transfer technology related to the process of anaerobic digestion to him so that he becomes a local subject matter expert in the process. This will ensure we have local technical support and help his own small business build capacity. Further, we will be employing local labor in the construction, ensuring that we transfer expertise about the anaerobic digestion processes to local plumbers and electricians. In addition, we will develop a workforce development program to train local labor in the operations and maintenance of the Waste-to-Energy facility. We will also employ local labor as part of the digestate disposal program. For example, we plan to use the com posted digestate to create an agricultural park to grow peonies. We will provide training in peony cultivation. We intend to collaborate with local vocational training providers to help create sustainable programs for this workforce training. AEA 15003 Page 19 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I ·. AI Jb8i'M 7 ~ENERGY AUTHORITY p,1•~~!~so.i.lrceAvailal;).ility• ......................................................................................... ;··············.·······it' •• \ ;••••·••.·•··············••• > ..•• r ·••·s(..i ..•.••.... ··········•·••········ .. Gritefia,.·.· .•• stage· 2c!3.p.:•.··TlJe•••f"enfJWEJb.le .. ~nergy .• re.squrc.e•·[s av~tla/J.fi}Pf'l••a·. su:>tainable .ea,:>i:>.· projeCtperrnits a(ldQtherautf)Orizatir:mscanreasonably beobtained. · · · · · · ·. · 5.1.1 Proposed Energy Resource · ..... ·.······•· and. Describe the potential extenUamount 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. The proposed energy resource is biosolids generated from the waste water treatment plants owned and operated by the City/Borough of Juneau. The CBJ produces 6,992 wet tons (1, 105 dry tons) of biosolids a year. Currently, this material is shipped in waterproof containers to a landfill in Oregon at an approximate cost of $2,000,000 per year. The CBJ is currently evaluating other solutions, including the development of a belt dryer, which would cost about $22,000,000 to construct and over $ 500,000 per year to operate. Because of the high cost of electricity in Hoonah, using the biosolids to generate electricity in Hoonah is a commercially viable option to this alternative, even considering the costs of transportation and handling. Additional feedstock could include food waste collected from the CBJ. The local garbage hauler, Pacific Waste, indicated that if food waste could be eliminated from the Municipal Solid Waste stream in the CBJ, it would help mitigate the bear problem. Food waste is high in organics and would make a valuable addition to the Anaerobic Digestion facility. Part of the scope of work for during the Feasibility and Conceptual Design Phase will include developing and executing feedstock agreements with the CBJ for the biosolids and negotiating with the solid waste purveyors regarding the food waste. 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 Permitting agencies will include: I a. Department of Environmental Conservation ("DEC") i. Air quality ii. Water quality iii. Solid waste handling iv. Other environmental requirements We estimate it will take 3-4 months to obtain the DEC permits, primarily due to public notification requirements. We do not believe the Project will unsurmountable barriers. I b. City of Hoonah -building permit AEA 15003 Page 20 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form We estimate it will take 1-2 months to obtain the City Permit, primarily due to public notification efforts. We do not believe the Project will encounter unsurmountable barriers . . ~-2 J:?r~jecf~i.t~.•·····.·····.·.···· •····•·•·•····•·······•····••·••·••····••••••·•······. / ...•....•. ·.····· ...•.......•...•.•...•... ·.···•·· >··.·····•··············•·•.······· ...•..•.•.. · .... ••····• c ........... ··········· ..•....... _ .......•........ ·•criteria,: §f?g~g~~·El;A•·•~ft!'J_·_is.·.~.\lai@.it(;) ~ocl·.sl.litab/f!foi:tfJf!proposecff)f)(;)fiJYSYStern·•···········\.•.)> i•·•·••·••· ;> . [2.Ef~.crib.e•••th!'J ~V?ilabilit}'.P[ tf!.e.~itf) aiJi:J •• It~_-.··~l.litapility foptpewrqpo~ec:J •• ehrf,rgy····~y~twn·•/{}!'Jntffy •. pqteptfal)andpvvrJershfp{t>SI.ff)S,inCIIJcl{f)g'fpfl_~f)(;)r.·•$ft(;)PW.pershav~•agr(;)ed.tp.t/J€!pf9]ectpr .. hq~. yoaJnt(;)OcJ to apptotJch1arfd ownership a.nii access lssuli}s. · · · · ·· · · ··· · · · · · .· · ·· · · · ·· The proposed site is owned by the City of Hoonah. The City has indicated they would make the site available to the Project, at a low cost or as part of the City's in-kind contribution to the Project's equity. The site is, adjacent to a major, existing road in Hoonah. An existing electrical transmission line as well as a water transmission line run along the front of the site. ··!i~~••·•·••P~§lect~i~k·••i••••••·•······•···•···.·•••·.•••·•·•··i··••.•···•·•·;••·····••·••··••···.••••·••/·•·•··•·•···••··•••·••·-••••··•·•·•···•i•?·.••••··••·•·•·••··.·.··••••-••·•·•••••···•····••·····•·-•·•••···•••i••·••••·•·••·•·•·•······. (Jrlteria:Stage 2-3. C: Project tec;linical a&iienvkonmentalrisks ar~ reasonable.········ .· 5.3.1 Technical Risk Describe potential technical risks and how you would address them. There are few technical risks. Anaerobic digestion has been used to reduce waste water biosolids for decades, primarily in Europe. The technology has gained popularity in the U.S., particularly at larger waste water treatment plants. There is a similar facility in Akron, Ohio; Gresham, Oregon and Washington, DC. Smaller scale facilities have been deployed in dairy farms and other agricultural enterprises in the states of Washington, Wisconsin and Minnesota, etc., where high volumes of rich organic matter are generated. The use of methane to generate electricity is also a widely used technology. We are managing any technical risk by relying on experienced technology providers. BioFerm, and its parent company, Veissman, have designed and built many similar facilities. Our contract with BioFerm will require a performance guarantee and robust warranty provision, to ensure the facility performs as it is intended. We are addressing the longer term, operational risk by transferring anaerobic digestion technology to local engineers as well as craft labor, such as plumbers, boilermakers and electricians. This will ensure we have a local labor force that can provide maintenance and trouble shooting. 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 AEA 15003 Page 21 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form • Visual, aesthetics impacts • Identify and describe other potential barriers I , A I fr'i'?i* ~ENERGY AUTHORITY There are no environmental risks. These environmental factors will be addressed during the permitting processes . . ~~4 Ejcistif1Qlincl f'r~Pol>e~ EJI~f~Y§Y~t~fil·····,· .. , ••···•··· •. v ······················ ... ·.··· ,··,. ···•···.····.··············· .. ·.··.·· C < ..............• · C,riteria,:••Stagr:J2-~.0:The.proposedeQergy$Ysti!Jmc.anreli;;~blyproduoe and defiv.erenf)rgy as< . ·• .. •.p' · .,· ... a· n··.· n·· .. ·e·. ·d·. ·· •.. · .• · · ··· ·· · · · · ··· · ·· ··· · · · · ···. ··••·• • •. ·· ...•. •.·.···.·.····· •· ·.· · .· • · · · · • · · ·· ··· · · ·. ·. · .. ·· .·.. · · • ··•·· ·. •· ·· · · .. · ... · ·· · .. ·· · ·· ·· · · · ·· · ·.· .. · ·· · ·· .· ... · · ·· · .· · · · · ··· · · · · · •·•· ·· •· •. •·.··· ·· ·• • • ··• · ·.•·. ····'' < 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. The existing energy system, owned by the Island Passage Electric Cooperative ("IPEC") consists of diesel generators and a smaller hydroelectric plant. The current cost of power to commercial and public customers is about $.61 per kWh. I 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 ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency ofgenerators/boilers/other vi. Is there operational heat recovery? (Y/N) If yes estimated annual displaced heating fuel (gallons) We do not h!J,ve this information. /PEG is. notinvo/ved in our proj(;ct. We havE) collected .energy use· . d[lta from City-owned building. We project .that we will generate sufficient electricity to power almost all of the City-owned buildings. b) Annual O&M cost (if system is part of the Railbeltgrid, leave this section blank) i. .Annual O&M cost for labor ii. Annual O&M cost for non-labor We c!onot have this information. IPEC is not involved in our project. c) Annual electricity production and fuel usage (fill in as applicable) (if system ispart ofthe Railbelt grid, leave this section blank) i. Electricity [kWh] ii. Fuelusage Diesel [gal] 1 The Rail belt 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. AEA 15003 Page 22 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I ·· ... A' *@@A 7 ~ENERGY AUTHORITY Other i.ii. Peak Load iv. Average Load v. Minimum Load vi. EffiCiency vii. Future trends We do not have this information. /PEG is not involved in ourproject. 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 We do not have this information. /PEG is not involved in our project. 5.4.2 Future Trends Describe the anticipated energy demand in the community over the life of the project. We anticipate that over the life of the project, the demand for electricity will grow, particularly with commercial and public users. Some of these users are already suffering from the high cost of power. For example, one of the largest consumers of power is the local school. School funding has declined dramatically due to the State's budget crisis. The school has had to curtail some of its programming and close some of its facilities, such as the swimming pool. The community cannot afford to pay the cost to heat the pool! This budget crisis is not going to go away any time soon. Anything the community can do to mitigate the school's operating costs helps the students and indeed, the whole town. Further, the high cost of power has a chilling effect on business development. Providing an affordable power rate will encourage entrepreneurs to develop small businesses. This will help stabilize the community's population. People are now leaving town because they cannot afford the cost of living in Hoonah. 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. We anticipate we will be able to reduce the City of Hoonah's cost of electricity by at least 40%. We do not expect to affect the cost of electricity to residential consumers who receive PCE subsidies. 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 AEA 15003 Page 23 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Integration plan • Delivery methods We will be using anaerobic digestion technology designed, fabricated and installed by Bioferm Energy Systems, www.BioFermEnergy.com. The foundation of this technology is a single, COCCUS® tank, designed for wet digestion. The tank holds the feedstock and allows naturally- occurring bacteria to digest the hydrocarbons embedded in the feedstock and create methane. The methane is then burned in a generator to produce electricity. The COCCUS® tank will be sized to accommodate the volumes of feedstock we anticipate receiving from the CBJ's waste water treatment plants. We are also considering the possibility of supplementing the biosolids with food waste, also collected from the CBJ. The estimated generation capacity, given the biosolids volumes we will have available to us from the CBJ, is approximately 750,000 kWh per year, which is 15-20% of Hoonah's current electrical load. I addition, we will explore the introduction of food waste as feedstock. Our preliminary indications are this could increase power production to 1,100,000 kWh pre year. We do not anticipate any technical barriers to the application of this technology. 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] : The facility will be designed to accommodate the volumes of · biosolids projected to be generated by the CBJ waste water i treatment plant over the life of the project. Further, we are ' exporing the possible introduction food waste as a feedstock. b) Proposed annual electricity or heat production (fill in as applicable) L Electricity [kWh] ii. Heat [MMBtu] • 745,000 kWh per year-approximately 15-20% of Hoonah's ; electrical load. If we include food waste, we could be generating 1,100,000 kWh per year. 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] lv. Other d) . L Estlmate.number of hours renewable IPEC will not be able to turn its diesel generators off. will allow powerhouse to turn diesel engines off (fill in as applicable) ·. . 5.4.5 Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment used to comply with the operations reporting requirement identified in Section 3.15 of the RFA AEA 15003 Page 24 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I ·· .. A' afWN' ~ENERGY AUTHORITY We will identify necessary metering equipment, and estimated costs, during conceptual engineering. AEA 15003 Page 25 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I •· .. AI A&3rt s ~ENERGY AUTHORITY J;.~.:·~foilRI!'Ii(l.FeasiJ:>/lify-;• ; .... ·.···••·•··•· .; • ,, .·········• ..... ·.··.•····.·.·.··• •... ·· •...•....••. , •........ • ···.•.············••·•················•····.··.··········· prit?ria:$1£1fW2-4,A:T:fi?.Pro]ff.ctis§hq~n.,to§f,econwnfc~ty.{ea,%iblft.·(n~t!Pti§ttives{1ving$if!.••'uet,··. opf)ration andmaintenEJnce, ancl capitalpostsoverthe/ifi'J.oftf)?f.it()p()s(;Jdproject); · .· · · · · · 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. The people of Alaska will benefit financially from this project in the following ways: The City of Hoonah and the Hoonah schools will enjoy a cost savings in their electrical rates. For example, the school currently uses approximately 500,000 kWh of electricity a year. If we can cut the cost of their power by 40% or more, it will have a dramatic, positive effect on the school budget. The Project will create temporary jobs during the construction and commissioning phase. The Project will create new fulltime, permanent living wage jobs during the on-going operations. The Project will mitigate the CityfBorough of Juneau of an expensive and burdensome problem - disposal of its biosolids and possibly, food wastes 6.1.2 Power PurchasefSale 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. We plan to sell our power to the City of Hoonah and Hoonah Schools. Our proposed rate will be $.40 per kWh for the first three years and then $.30 per kWh for subsequent years. We estimate that if this project were financed with private financing, pay back would occur in 10 years at a simple interest rate of 10%. AEA 15003 Page 26 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I ·· .. AI AR'it\ 3 ~ENERGY AUTHORITY 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, minesl 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. We are not planning on selling power to private sector businesses at this time. Renewable energy resource availability (kWh per month) 62,083 kWh Estimated sales (kWh) $24,833/month Revenue for displacing diesel generation for use at private sector businesses ($) n/a Estimated sales (kWh) $24,833/month Revenue for displacing diesel generation for use by the Alaskan public ($) $24,833/month 6.2·····~·ipa;llt:i~9 ~~a.,·0··•f·······;·············•/········ J.~ ••••..• ru:·····················•·i······ •·•·•···.i··Ci··············· :•·•· k:; " ••••• c•.••••· ········~· it······· Crite.ri~ .• Stag~ g,4.f3: fhe p(O]~pt ba~ ··an.adeqt111te [ina(loi(fg plllf)f()CC9tYIRietion.pf.th~cgrant- f(Jnde.dphaseandtJai/(;onsidw_edoptionsforfinanCings.ubsequentphases.pfthepro]eot. ·· · · 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. Additional funds would come from a private Project Finance firm; we are already in the process of discussing this Project with a firm that is very interested in funding the project. Funding from this source would be available concurrent with the grant. 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? Our biggest challenge has been finding funding for pre-development costs. We have identified private funding for final design and construction, but this source does not cover pre-development costs. Further, the interest rates are likely to be higher and the pay back periods likely to be shorter than public funding sources. We would welcome access to a low interest loan with a longer payback period. 6.2.3 Cost Overruns Describe the plan to cover potential cost increases or shortfalls in funding. AEA 15003 Page 27 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form Cost overruns will be managed throughout the life of the project in the following ways: Contract delivery method -We are using the design-build method of contract delivery, which places the responsibility for the design and the construction of the facilities under one contractor. This minimizes the opportunity for change orders and overlooked design details. Project Controls -We will use a robust set of project control tools to track the scope, schedule and budget of the project. We will be able to identify cost trends and take mitigating steps if the trends turn negative. Contingency Management -We will build a reasonable contingency into our budget to address the "unknown unknown" factors that can arise in a construction project. We will also have system that specifies the contingency will be managed. 6.2.4 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. Subsequent phases are not required. ·•s,a. ptherf'ublic Elel'lefit .·••·· ••••.• ·.· < •..••.•. <·.····•····•i:••'·'·•• .••...•. \ . > .......... i ••••····· ••••··.·.·•'•··.•Ci ) •.• ···············........... +·········•·•• G,[lt~oJna.•9t<.~ge •... 3;4 .q:: Other, bf!peflt:, to the ·Af£1Sk.i! pl.!bltc are ,c;!emonstrated.·: Avorc;Jed r:;osls :a/one Will not bf!presl.!medto be in the. bes/iijterest orth e plib/ic. · · · · · · ·· Descnbe the non-economic public benefits to Alaskans over the lifet1me of the project. For the purpose of evaluating this criterion, public benefits are those benefits that would be considered unique to a given project and not generic to any renewable resource. For example, decreased greenhouse gas emission, stable pricing of fuel source, won't be considered under this category. Some examples of other public benefits include: • The project will result in developing infrastructure (roads, trails, pipes, power lines, etc.) that can be used for other purposes • The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.) • The project will solve other problems for the community (waste disposal, food security, etc.) • The project will generate useful information that could be used by the public in other parts of the state • The project will promote or sustain long-term commercial economic development for the communi! This Project will benefit the public in the following ways: a. Increase the number of living wage jobs in Hoonah, to operate the plant, manage feedstock transportation and manage digestate disposal. b. Create opportunities for the growth of existing and the development of new small businesses that can take advantage of lower power costs. For example, one Hoonah fisherman catches silver AEA 15003 Page 28 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I ·. A1 0 81M 2 ~ENERGY AUTHORITY salmon on a long line. He cleans it, pressure bleeds it and flash freezes it at sea, creating a high quality product, which should have sold at three times the going price for standard silvers. However, he was forced to sell his beautiful fish at a lower price to the Hoonah Cold Storage Plant because he could not afford to pay the costs of running a freezer until he could develop a higher value market. If the costs of power had been more affordable, he could have kept the fish and done some market development. c. Create opportunities for the development of small agricultural businesses that can take advantage of the digestate by-product. For example, peony cultivation has been proven to be a commercially viable business, given the right location and soil. We can create our own topsoil, using the digestate as a base. d. Create a tourist attraction. Currently 76 large cruise ships visit Hoonah. The WTE facility will have a Visitor's Center where visitors can learn about WTE technology and environmental sustainability. e. Solve a major solid waste disposal problem for the City/Borough of Juneau. The CBJ's best alternative to the WTE Project will cost over $20 million in capital costs and over $500,000 in operating costs. The WTE Project will relieve the CBJ of this financial burden. f. The Project will generate useful information about the technical and commercial viability of WTE Projects that can be used throughout Alaska and other Northern climes. The feedstock, waste water biosolids, is continuously produced by the City/Borough of Juneau. The CBJ has in fact projected that the volumes of biosolids it produces will increase, as its population increases. The need for electricity in Hoonah is not going to diminish, particularly related to public buildings such as the City-owned facilities and the schools. The City of Hoonah's credit worthiness is highly rated. It is current on its loans, grant administration and other financial reporting requirements. The City intends to establish a WTE Division that will be responsible for operating the plant. The City currently receives numerous government grants and administers government contracts. Government contracting requires rigorous attention to detail in contract administration, personnel management and business acumen. With this experience, the City has demonstrated it has the and to the WTE Plant. AEA 15003 Page 29 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I · .. AI Q;Sl:it 2 ~ENERGY AUTHORITY In collaboration with the Hoonah Indian Association and J. Keiser & Associates LLC, we have completed the Reconnaisance Phase and are ready to move into the next phases of the Project's development. We have identified a site, currently owned by the City of Hoonah. During the later phases, we will acquire the permits, execute a long term lease for the site, do the engineering and procure the equipment and construction services necessary to build the WTE Plant. We have identified a technology provider and have received a preliminary proposal for the anaerobic digestion and electrical generation equipment. We have also identified a Design-Build contractor who is helping us with developing reliable cost estimates. We have identified at least two potential sources of private project financing. We have developed a preliminary pro forma, which demonstrates the financial viability of the project over a 20 year duration. The CBJ will likely require such a duration for the Feedstock Agreement. The City of Hoonah City Council supports the Project and authorized the Mayor to engage in negotiations relating to it. The HIA Board of Directors passed a Resolution supporting the project and the submittal of this AEA 15003 Page 30 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I ~ A' a81M r ~ENERGY AUTHORITY The U.S. Department of Energy's Office of Indian Energy visited Hoonah during the week of September 1, discussed the project and offered their support. In fact, they want to discuss possible application of the technology in other Indian communities. We have not yet engaged in broad community outreach in Hoonah regarding this Project. The Hoonah Indian Association has been awarded a START grant to develop a Strategic Energy Plan. This effort will involve community outreach, which the City will be part of. We will address the WTE Project in that broader context first, and then engage in Project-specific outreach when we have drawings and other documentation people can look at and comment on. We have had discussions with the Robert Venable, SE Conference Energy Coordinator; representatives of the Renewable Energy of Alaska Project; and the City/Borough of Juneau about the Project. The local power producer, IPEC, is aware of the Project. However we have not yet engaged in detailed discussion or negotiations with IPEC about the Project. IPEC will probably be concerned that WTE Plant will be a competitor. The Hoonah Indian Association ("HIA") has recently been awarded a START Grant from the U.S. Department of Energy's Office of Indian Energy. A key goal of that grant is to develop a Strategic Energy Plan for the community of Hoonah. The WTE Facility will become an integral part of that plan. The City will be on the leadership team for that effort as well as an active player in the community involvement efforts that will take place. We have the following supporting documents: • Project Summary Overview, prepared by Janette Keiser, PE, JD, J. Keiser & Associates LLC • Project Snapshot-prepared by BioFerm Energy Systems, September 2015 • Data of Historical Energy Usage of City -owned buildings in Hoonah-compiled by REAP, I 2015 AEA 15003 Page 31 of34 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I = ~ Biosolids Treatment and Disposal Evaluation -Phase II -prepared by CH2M Hill for the City and Borough of Juneau, September 2014. This document demonstrates the biosolids disposal problem currently challenging the CBJ. It includes cost projections for the capital and operating costs for the belt dryer option, which seems to be the preferred option. The WTE project offers a more cost- effective solution. Statements of Qualifications for BioFerm Energy Systems Statements of Qualifications for Lydig Construction AEA 15003 Page 32 of34 7/8/14