HomeMy WebLinkAboutRound9REF_TENAKEE_IndianRiverSupplConstructionRenewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 1 of 32 Tenakee – Indian River 9/15/14
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant
Application Form for Round VIII of the Renewable Energy Fund. 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 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:
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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.
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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.
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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 TENAKEE SPRINGS dba TENAKEE SPRINGS ELECTRIC DEPARTMENT
Type of Entity: Fiscal Year End:
LOCAL GOVERNMENT July 31
Tax ID # 92-0048310
Tax Status: ☐ For-profit ☐ Non-profit ☐ Government (check one)
Date of last financial statement audit: 2015
Mailing Address: Physical Address:
PO BOX 52 TENAKEE SPRINGS COMMUNITY BLDG.
TENAKEE SPRINGS, AK 99841 TENAKEE AVENUE
Telephone: Fax:Email:
907-736-2207 907-736-2207 citytke@gmail.com
1.1 Applicant Point of Contact / Grants Manager
Name: Title:
ARTHUR BLOOM HYDRO PROJECT MANAGER
Mailing Address:
PO BOX 52
TENAKEE SPRINGS, AK 99841
Telephone: Fax:Email:
907-736-2222 907-736-2222 artmbloom@gmail.com
1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION
Name: Don Pegues Title: Mayor
Mailing Address:
PO BOX 52
TENAKEE SPRINGS, AK 99841
Telephone: Fax:Email:
907-736-2207 907-736-2207 citytke@gmail.com
1.1.2 Applicant Alternate Points of Contact
Name Telephone:Fax:Email:
Don Pegues 907-736-2207 907-736- citytke@gmail.com
X
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2207
John Wisenbaugh 907-736-2207 907-736-
2207
wisentenakee@juno.com
1.2 Applicant Minimum Requirements
Please check as appropriate. If applicants do not meet the minimum requirements, the
application will be rejected.
1.2.1 Applicant Type
☐ 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)
* RESOLUTION ON AGENDA FOR SEPTEMBER COUNCIL MEETING, WILL BE PROVIDED WHEN
AVAILABLE
☐ 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)
X
X
X
X
X
X
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SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
INDIAN RIVER HYDROELECTRIC PROJECT – CONSTRUCTION
2.2 Project Location
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.
The project is located on Indian River, approximately one mile east of Tenakee Springs
in Township 47 South, Range 63 East of the Copper River meridian. This project is
located at approximately 57.788d N, 135.193d W.
2.2.2 Community benefiting – Name(s) of the community or communities that will
be the beneficiaries of the project.
Tenakee Springs. All utility customers, residents and businesses will benefit from this
project.
2.3 Project Type
Please check as appropriate.
2.3.1 Renewable Resource Type
☐ Wind ☐ Biomass or Biofuels (excluding
heat-only)
☐ Hydro, Including Run of River ☐ Hydrokinetic
☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable
Energy
☐ Solar Photovoltaic ☐ Storage of Renewable
☐ Other (Describe) ☐ Small Natural Gas
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
X
X
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2.4 Project Description
Provide a brief one paragraph description of the proposed project.
The City of Tenakee Springs is constructing a hydroelectric project on Indian River. The
project is a 180 kW low head, run-of-river plant displacing the use of approximately
30,000 gallons of diesel fuel annually, or 94% of annual electric utility diesel
consumption (See Table 3-1, Final Business and Operating Plan, Polarconsult, January
2015).
At least 6,500 additional gallons of fuel oil can be displaced by heating public buildings
(community building and school) with excess energy from the hydro project.
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.
The City has previously successfully completed feasibility study and permitting and
design phases for this project under AEA’s Renewable Energy Grant (REG) Program.
The project is currently under construction, with grant funds awarded under the REG
Program and city matching funds.
Under an AEA-approved phased construction strategy, the City has successfully
completed the high-risk heavy civil construction activities for the project, including
access roads to the project site and a bench through the river canyon for placement of
the penstock. Remaining work includes construction of the diversion structure and
powerhouse, installation of the penstock, power line extension, installation of the turbine,
generator, switchgear and controls, plant startup and commissioning, and design and
installation of electrical/mechanical system upgrades to provide electrical heating on an
interruptible basis to the community building and school.
Remaining civil construction (construction of the intake works, penstock, and
powerhouse) is scheduled to go out to bid in fall 2015 for construction in 2016.
The proposed scope of work to be covered by the requested grant and matching funds is
the balance of plant construction after remaining civil construction is completed. This will
consist of the power line extension to the hydro powerhouse, procurement/installation of
the turbine/generator, switchgear, and controls, and plant startup and commissioning,
and design and installation of electrical/mechanical system upgrades to provide
electrical heating on an interruptible basis to the community building and school.
The City intends to secure project financing sufficient to complete this project with or
without the requested grant funds. The prime purpose of the grant funds will be to
directly reduce electric rates to the general public by reducing the City’s debt burden on
this project (see discussion at 5.4.3, 6.1.1).
The City plans to put the balance of plant out to bid in March 2016 once project financing
is in place. The City recognizes that availability of grant funds requested in this
application will be unknown at that time. If AEA recommends this project for funding, the
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City intends to request authorization from AEA to assume reimbursable grant expenses
prior to July 1, 2015 in order to avoid delays on the project construction schedule. If the
grant award does not materialize, the City’s financing will be sufficient to complete the
project. If the grant is awarded and AEA does not authorize advance expenditures, the
City will submit a revised schedule for the proposed scope of work. In this event, project
commissioning will be delayed to 2017.
The scope of work for requested funds is completion of project construction, specifically
to include procurement and installation of the following:
1. Hydro turbine / generator
2. Hydro powerhouse switchgear/controls systems
3. Construction of power line from existing distribution near the harbor to the hydro
powerhouse
4. Plant commissioning / startup.
5. Design and installation of interruptible electric services at power plant, community
building, and school (or other buildings at City discretion).
5. Project management and construction engineering support.
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 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
Date*
End
Date Deliverables
1. Bid documents - Hydro turbine/generator
vendor
- Power line contractor
- Hydro switchgear /
controls contractor
3/1/16 4/1/16 Bid documents
2. Vendor Selection and Award Select vendors, award
contracts
4/1/15 4/15/16 Bid Synopsis
3. Construction Construct project per
contract scope of work
4/15/16 8/15/16 Monthly Construction
Reports
4. Construction Management Manage construction 4/15/16 8/15/16 Monthly Construction
Reports
5. Construction Engineering Engineering inspections,
respond to contractor RFIs,
etc.
4/15/16 8/15/16 Monthly Construction
Reports
6. Integration and Testing 8/15/16 9/15/16 Monthly Construction
Reports
7. Plant Commissioning Commission plant 9/15/16 10/1/16 Monthly Construction
Reports
8. As-Built drawings
O&M Manual
Prepare as-built
Prepare O&M manual
10/1/16 11/1/16 Record drawings
O&M manual
9. Design and installation of
interruptible heating systems at
Design systems
Hire Contractor
4/1/16 11/1/16 Record Drawings
O&M Manual
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community building and school Build Retrofits
10. Operations Reporting Annual operations reports
per RFA
1/1/17 1/1/27 Annual operations reports
* See narrative at 2.5 for proposed schedule and intent to seek AEA approval to
assume reimbursable grant expenses prior to July 1, 2015. If this approval is not
granted, the City will submit a revised schedule with a start date of 7/1/2016.
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 Tenakee Springs has demonstrated its financial commitment to this project
by providing matching funds and in-kind services for several prior rounds of grants to
advance the project through feasibility study, design and permitting, and construction.
Matching funds committed to the project to date total $373,000, consisting of City
general funds, directed State of Alaska appropriations, and in-kind services.
To date, the City has successfully managed the project budgets. The feasibility and
design / permitting phases were both completed under budget and/or with expanded
work scopes to beneficially utilize remaining funds to advance the project. Construction
to date is also under budget, with the penstock bench completed in 2015 approximately
25% under the engineer’s cost estimate for a project savings of approximately $275,000.
The City recognizes, however, that remote construction costs can be volatile, and holds
the current budget savings in reserve for potential future cost overruns on this project.
The City is committed to completing this project, and plans to secure financing
independent of this grant application to complete the project in 2016. This financing will
either be used to complete the project if grant funds are not awarded, or be available as
contingency in the event of cost overruns on the remainder of project construction.
The City is evaluating financing options and expects to start the process to secure
financing (bond or loan applications) later this year in time to have the funds in place for
2016 construction.
If awarded, the City’s current grant request of $809,000 will bring the cumulative grants
awarded under the Renewable Energy Grant Program for this project to the maximum of
$4,000,000 in the current RFA. The City commits matching funds as needed to
complete the project. Based on the Engineer’s cost estimate for remaining construction,
total non-REF funds (matching funds) are estimated to be $1,115,280. Since actual
construction cost will vary from the estimate, the precise match amount is not known at
this time. It is estimated that the match amount would be less than the grant amount of
$809,000, so the minimum total match is estimated to be 100% of the requested grant
amount.
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3.2.2 Budget Forms
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
1. Bid documents $6,300 $8,700 Cash/in-kind $15,000
2. Vendor Selection and Award $4,200 $5,800 Cash/in-kind $10,000
3. Construction $532,800 $734,480 Cash/in-kind $1,267,280
4. Construction Management $25,200 $34,800 Cash/in-kind $60,000
5. Construction Engineering $25,200 $34,800 Cash/in-kind $60,000
6. Integration and Testing $105,100 $144,900 Cash/in-kind $250,000
7. Plant Commissioning $21,900 $30,100 Cash/in-kind $52,000
8. As-Built drawings and O&M
manual $4,200 $5,800 Cash/in-kind $10,000
9. Design and installation of
interruptible heating systems at
community building and school
$84,100 $115,900 Cash/in-kind $200,000
10. Operations Reporting $0 $0 Cash/in-kind $0
TOTALS $809,000 $1,115,280 $1,924,280
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $809,000 $1,115,280 Cash/in-kind $1,924,280
Other $ $ $
TOTALS $809,000 $1,115,280 $1,924,280
3.2.3 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget.
Project cost estimate is based on the final engineer’s cost estimate for the project,
prepared by Polarconsult Alaska, Inc.
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 $ 809,000
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Cash match to be provided
* see discussion of match at 3.2.1
$1,100,000*
In-kind match to be provided
* see discussion of match at 3.2.1
$ 15,280*
Total costs for project phase(s) covered in application (sum of above) $1,924,280
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 $ 0
Feasibility and Conceptual Design $ 125,000
Final Design and Permitting $ 229,000
Construction $5,244,280
Total Project Costs (sum of above)$5,598,280
3.2.6 Operating and Maintenance Costs
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
diesel generation there is assumed to be no
impact on the base case O&M. Please indicate
the estimated annual O&M cost associated with
the proposed renewable project.
$ Not applicable. Project will operate in diesel-
off most of year. See below.
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
diesel generation
2. Estimated hours that diesel generation
will be off per year.
3. Annual O&M costs associated with the
proposed renewable project.
1. $ 8,000
2. Hours diesel OFF/year: 8,038 (92%)
3. $31,000
Items 1 and 3 from Table 3-1, Final Business
and Operations Plan. Item 2 based on
generation dispatch model. Varies from fuel
displacement (94%) because hydro and diesel
plants will run in parallel some of the time.
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.
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Tenakee’s Hydro Project Manager will provide regular reports to AEA on current project
activities. Construction reports will be issued on a monthly basis or more frequently as
appropriate. When the City’s designated Hydro Project Manager is unavailable,
Polarconsult’s project manager Joel Groves, or City Councilman John Wisenbaugh are
available as alternate points of contact.
During 2015 construction, the City’s engineer had a representative on-site to observe
construction and report back to the Polarconsult manager and City manager on a nearly
daily basis so they could closely monitor construction progress and budget and provide
timely responses to contractor questions. The City and/or Polarconsult in turn provided
regular construction reports and contractor’s daily reports on an approximately weekly
basis to keep the AEA project manager fully appraised of construction progress. The
City will continue this close contractor oversight and coordination with AEA during the
remainder of the project.
Post construction, the utility will provide annual performance reports to AEA as required
in the grant agreement. Preparation and submittal of these reports will be integrated
with regular PCE reporting to streamline reporting effort and minimize administrative
burden for the utility. The hydro plant controls will have the capability to output monthly
plant performance reports and data exports in standard electronic formats.
Plant controls will be tied into the diesel plant and a operator interface terminal (OIT) will
be provided in the diesel plant that allows the plant operator to monitor and control the
hydro plant.
AEA personnel are always welcome to come to Tenakee and review the project, both
during the construction phase and once the project is operational.
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 project will be owned by the city and operated by the city electric utility. Plant
controls will be integrated with the existing diesel plant controls for automated dispatch
of the hydro to carry utility load.
The utility has necessary logistic, business, and financial capabilities to operate the
hydro project as part of the utility’s physical plant. The utility manager and staff are
familiar with the hydro project and prepared to assume operation of the project upon
commissioning. See the business and operating plan included on the Application CD-
ROM.
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 City’s project manager is Arthur Bloom, an employee of the city (Hydroelectric
Project Manager) and former City Council Member. Mr. Bloom has served as hydro
project manager since the feasibility study began in 2008 and is familiar with all aspects
of the project. John Wisenbaugh, a current City Council Member, also stays current on
project status and can serve as acting project manager when Mr. Bloom is unavailable.
Tenakee Springs hired Polarconsult Alaska, Inc. to complete the feasibility study,
conceptual design, permitting, final design, and construction engineering for the project.
Under this contract, Polarconsult is also providing project management support and
assistance as directed by the City. The same Polarconsult personnel, in particular the
project manager, Joel Groves, PE, have been working on this project since the
feasibility study, also providing excellent project continuity and familiarity. If designated
City managers are unavailable, Mr. Groves can respond to many questions or can
contact knowledgeable City personnel to find answers on a timely basis.
No management assistance from AEA is needed.
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.
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
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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’s existing project manager and engineering consultant have been involved with
this project since the feasibility study, and intend to remain involved with the project
through commissioning. Both parties were directly involved in securing the
environmental and regulatory permits and authorizations for the project, and are fully
familiar with the permit terms and conditions.
The City has successfully managed contracts for project construction completed to date,
and construction to date has been completed under the engineer’s cost estimate for the
applicable phases of the project. The penstock bench constructed in 2015 was
completed approximately 25% under the engineer’s cost estimate at a project savings of
approximately $275,000.
Polarconsult was the design engineer for several recent successfully completed remote
hydro projects in Alaska. Polarconsult is the engineer of record for the Chuniisax Creek
hydro in Atka (2012) and Packer’s Creek hydro in Chignik Lagoon (2015). Polarconsult
is also the engineer of record for major upgrades completed at the Pelican Creek hydro
in Pelican (2010).
The community intends to identify plant operators prior to Phase 3 construction and
involve them with construction activity where appropriate so they will be familiar with how
the project was built, as we believe this will benefit the utility in the long-term with project
familiarity and ability to successfully and efficiently perform operation, maintenance,
repair and replacement activities.
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 employs a bookkeeper to manage city finances. The City’s engineering
consultant and hydro project manager also directly review all pay requests from
construction contractors / suppliers.
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.
All construction pay requests are first routed to the Engineer, who reviews the request
for consistency with the construction contract and technical status and adequacy of work
completed. The engineer makes a recommendation for payment or revision of the pay
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request as appropriate. The pay request then goes to the hydro project manager for
review and approval, and is then forwarded to the City’s bookkeeper for final processing.
The city uses QuickBooks accounting software.
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 that local labor is qualified, available, and willing to participate in project
construction, it will be utilized. The City’s contractors have successfully used local
residents on both phases of the project that have been completed to date. The City has
also occasionally used local labor to advance the project, often on a volunteer basis (as
local logistic support).
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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.
The hydro project is a run-of-river project located between falls 4 and falls 2 on Indian
River. The project has a design flow of 50 cfs, gross head of 64.5 feet, and installed
capacity of 180 kW. The project will have a capacity factor of 76.2%, average total
annual generation of 1,169,000 kWh, and will supply 94% of Tenakee’s existing electric
load. The project provides significant margin for load growth and/or space heating
applications in the community.
The project design drawings, permits, and feasibility study have been previously
submitted to AEA, and are also included in Attachment G.
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
All permits for the project are in place. All permit documents are included in the Permit
Packet on the Application CD-ROM in Attachment G. Major permits are:
1. FERC Finding of Non-Jurisdiction (DI10-8-000).
2. ADFG fish habitat permit (FH11-I-0125).
3. ADNR Water use permit (LAS 27836).
4. U.S. Corps of Engineers Environmental Permit (2010-0758 NWP-39).
5. Finding of no historic properties affected from ADNR SHPO.
6. State Land Easement for project lands (ADL 108047).
7. Road Use Permit from U.S. Forest Service.
8. Authorization to modify existing fish pass at project intake site from U.S. Forest
Service.
9. A SWPPP and/or WQCP as appropriate will be prepared and filed with ADEC prior to
commencing construction activities.
5.2 Project Site
Criteria: Stage 2-3.B: A site is available and suitable for the proposed energy system.
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Describe the availability of the site and its suitability for the proposed 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.
Necessary permissions for all lands required for the project are in place. The hydro
project is located on State of Alaska land located along Indian River. The City has an
existing easement and Early Entry Authorization for the project from ADNR (ADL
108047).
The project power line is located on a combination of City and State land. State land is
covered under the easement in ADL 108047.
Access to the project site is from Tenakee Inlet at a log transfer facility (LTF) owned by
the City. Access from the LTF to the site is over a U.S. Forest Service logging road
(Indian River Road). The City has a long term road use permit for project access from
the U.S. Forest Service.
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.
The project uses proven, mature hydroelectric turbine technology with limited risk.
The hydrology of Indian River (available project flow, design floods) is well characterized
with seven years of flow data for Indian River and a synthesized record totaling 32 years
by correlating Indian River flow to other gauged basins in the region.
The primary technical risk for the project is geotechnical risk. The City has controlled
geotechnical risk on the project by breaking out the high-risk heavy civil construction
portions of the project (the project access roads and penstock bench along the river) in
separate bidding and construction contracts. These construction activities have been
successfully completed. The potential remains for minor scour, slides or rockfall as the
terrain acclimates to the construction work. Such events are expected to require minor
cleanup work prior to penstock installation.
Remaining work includes construction of the reinforced concrete intake and powerhouse
structures, installation of the penstock on the existing bench, installation of the power
line, and installation of the turbine/generator, controls, and other associated equipment
and machinery for the project. Both the intake and powerhouse sites are on exposed
bedrock and have limited geotechnical risk. Remaining construction work are
conventional features that have technical risk typical of the trades and types of work
involved.
Risks during construction will be carried by the contractor under a builder’s risk policy,
insurance, and contractor bonding.
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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
This project is in the construction phase and all environmental issues have been
addressed.
Threatened or endangered species. Consulted with applicable agencies, no affected
species in area.
Habitat issues. Fisheries issues addressed by Fish Habitat permit with in-stream flow
reservations and post construction monitoring requirements. Project includes
enhancements to fish pass to improve fish passage for coho salmon introduced into
Indian River by US Forest Service in late 1990s.
Wetlands. Project authorized by Corps of Engineers under Nationwide Permit 39.
Archeological. Cultural resources survey completed in 2012, project follows
archeologist’s recommendations for a finding of “no historic properties affected”.
Land development constraints. None applicable.
Telecomm Interference. None applicable.
Aviation considerations. None applicable.
Visual, aesthetic impacts. Project site is not frequented by the public and is not visible
from commonly used vantage points – none applicable.
Other potential barriers. None.
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.
Tenakee’s existing electric system is an islanded micro grid. Electricity is generated at
the utility’s single power plant, which has three diesel electric generators: 2- 88kW peak
and 1-66kW peak capacity installed in 2007 by an AEA Rural Power System Upgrade
project. This upgrade included a new powerplant building, new switchgear, and new
bulk fuel storage facility. In fiscal year 2014, the diesel powerplant had a generating
efficiency of approximately 11.8 kWh per gallon of fuel.
Electricity is distributed throughout the community via an overhead three phase 7.2/12.4
kV distribution system. The outer portion of the west end of the distribution system is
underground.
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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.
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 Three diesel generators
ii. Rated capacity of generators/boilers/other 2 – 88 kW, 1 – 64 kW
iii. Generator/boilers/other type None
iv. Age of generators/boilers/other All were commissioned in 2006. ~9 years old.
v. Efficiency of generators/boilers/other 11.75 kWh/gallon, based on FY 2014 data
vi. Is there operational heat recovery? (Y/N) If yes
estimated annual displaced heating fuel (gallons)
No.
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $41,000 (estimated)
ii. Annual O&M cost for non-labor $29,000 (estimated)
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] 427,000
ii. Fuel usage
Diesel [gal] 32,000
Other none
iii. Peak Load Approximately 100 to 120 kW (estimated)
iv. Average Load 42 kW (FY 2014 average)
v. Minimum Load Approximately 20 kW (estimated)
vi. Efficiency 11.75 kWh/gallon (FY 2014)
vii. Future trends System load has been nearly flat for the past 12 years. The long term trend is
an approximately -1% annual decrease in system load for FY 2002 through FY
2014. Historic load data is presented in Attachment G.
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] Projected 6,500 gallons can be displaced by excess hydro
electricity
ii. Electricity [kWh] None.
iii. Propane [gal or MMBtu] None.
iv. Coal [tons or MMBtu] None.
v. Wood [cords, green tons, dry tons] 24 cords per year (estimate)
vi. Other None.
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5.4.2 Future Trends
Describe the anticipated energy demand in the community over the life of the project.
The utility load trend over the past 12 years has been relatively stable at a -1% annual
reduction in system load from FY 2002 to FY 2014 Historical load and utility data is
presented in Attachment G. Future load projection over the 50-year life of the project is
for continuing stable system load. Lower electric rates would tend to encourage load
growth over time.
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.
With the requested grant, non-PCE subsidized electrical rates in Tenakee are projected
to decrease approximately $0.14 per kWh once the hydro project is operational. Rates
would remain lower than comparable rates under diesel generation for the life of the
project. See the project financial pro formas included in application Attachment G for
assumptions and specific rate savings.
PCE-subsidized electric rates would decrease approximately $0.13 per kWh under the
existing PCE subsidy formulas.
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 is a run-of-river hydroelectric project with major elements listed below.
Please also reference the final design drawings included in Attachment G.
1. A concrete diversion / intake structure with a design headwater elevation of 124.0
feet and design flow of 50 feet per second. The structure is co-located with an
existing U.S. Forest Service fish pass at the top of falls 4. The structure includes
modifications to the fish pass to maintain and enhance its functionality.
2. A 1,700 foot long, 36” diameter HDPE penstock installed on an existing bench down
the east bank of Indian River.
3. A powerhouse with a variable flow cross-flow turbine coupled to a three-phase
synchronous generator via a gear box speed increaser. Switchgear and controls will
automatically dispatch the hydro or diesel power plant based on water availability.
The rated tailwater elevation is 59.5 feet, for total gross head of 64.5 feet and net
operating head at full design flow of 55.7 feet.
4. 4,300 feet of new distribution voltage power line from the hydro power house to the
city’s existing distribution system near the small boat harbor.
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The project’s installed capacity is 180 kW, with a capacity factor of 76.2%. This is the
optimal installed capacity based on consideration of resource availability, utility load and
growth potential, and project cost. Annual energy generation capability is approximately
1,169,000 kWh. When the diesels need to run, the controls will run them at optimal
loadings to the extent practical to maintain high fuel economy and avoid wet stacking or
other adverse operating conditions.
There are no barriers to the project. All permits are in place and construction is in
progress.
The hydro and diesel plant controls will be integrated to allow automated (or manual)
transfer of load between the two plants.
Electricity will be delivered via an underground power line from the hydro power house to
the existing utility 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]
180 kW
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 1,169,000 kWh annual generating potential.
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] None
ii. Coal [tons or MMBtu] None
iii. Wood or pellets [cords, green tons,
dry tons]
None
iv. Other None.
d) i. Estimate number of hours renewable
will allow powerhouse to turn diesel engines
off (fill in as applicable)
Estimated 8,038 hours per year.
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.
The hydro plant switchgear specification requires that the switchgear include the
capability to meter and record hydro energy output and provide monthly summary
reports and data exports in standard electronic data formats (.txt, .csv, etc). Because
this will be new switchgear, the incremental cost of including this functionality in the
programming is not available, but is likely minimal. No additional metering hardware
beyond that normally provided in a powerplant is necessary to meet this requirement.
Implementation of automated data flow from the plant controls to an AEA database
would depend on timely supply of technical details of the AEA database so this
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functionality could be incorporated to the plant control specification before procurement.
If this information is not provided in a timely manner, implementation of this capability
after the controls have been commissioned will require additional programming and
possibly additional hardware. Cost for such a retrofit is unknown, but is estimated at
$25,000 to $100,000.
Fuel displacement will be estimated based on monthly kWh of utility load supplied by the
hydro and average efficiency for the utility’s diesel plant.
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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.
The project will eliminate approximately 30,000 gallons of diesel fuel used by the power
plant annually, plus an additional 6,500 gallons of heating fuel for total estimated
community fuel reduction of 36,500 gallons annually or 182,500 gallons over the 50-year
project life. At current fuel cost of $4.47 per gallon, the direct savings is $163,155 per
year or $8,157,750 over the 50-year project life.
The City is not aware of any tax credits for which the project would be eligible.
The city has not recently investigated green tags / carbon offset revenue. In past review,
the City found that the cost to certify the project would be similar to or more than the
revenue from green tag sales.
The requested grant will be used to reduce debt the City will take on to finance the
project. By reducing the debt service cost to the electric utility, the grant will directly
reduce utility rates by a projected $0.13 per kWh (see pro formas in Attachment G).
Multiplied by total utility sales of 361,000 kWh, the direct benefit to the public from the
requested grant is $46,930 annually. Over 50 years, the savings to the public is
$2,346,500. With a discount rate of 3%, the present value of this public benefit is
$1,207,498.
The benefit-cost ratio of the requested grant is $809,000 / $1,207,498 = 1.49.
The benefit-cost ratio of the overall project using AEA’s economic model is 1.34.
6.1.2 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
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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.
Not applicable. All power will be sold to existing customers of Tenakee Springs Electric
Department under the utility’s tariff. Utility rates will be based on utility operating costs
with the hydro plant in service. Existing rates are approximately $0.70/kWh. Rates are
set by the City Council. The electric utility is managed to cover operating costs plus
margin to provide a reserve fund for infrequent or non-recurring utility expenses.
6.1.3 Public Benefit for Projects with Private Sector Sales
For projects that include sales of power to private sector businesses (sawmills, cruise
ships, mines, etc.), please provide a brief description of the direct and indirect public
benefits derived from the project as well as the private sector benefits and complete the
table below. See section 1.6 in the Request for Applications for more information.
Not applicable. The project will sell power to all utility customers, which are the general
public of Tenakee Springs.
Renewable energy resource availability (kWh per month)Not applicable.
Estimated sales (kWh) Not applicable.
Revenue for displacing diesel generation for use at private sector businesses ($) Not applicable.
Estimated sales (kWh) Not applicable.
Revenue for displacing diesel generation for use by the Alaskan public ($) Not applicable.
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.
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?
The City is eligible to secure additional funding for the project through the AEA Power
Project Fund (PPF), State Municipal Bond Fund (MBF), or the AIDEA SETS Fund. The
City has held initial discussions with the PPF and MBF and intends to make a decision
on funding program and apply for funds before the end of 2015. Project pro forma
financials indicate utility rates will initially be comparable with existing diesel-based rates
without the requested RE program grant funds, slowly decreasing over time as diesel
fuel costs escalate. The Requested grant funds would lower utility rates by
approximately $0.13 per kWh. See project pro forma financials in application
Attachment G.
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The City has not previously assumed debt for capital projects. The City has a good
credit rating and is not aware of any limitations on assuming a debt to complete this
project.
6.2.3 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
The City will include contingency in project financing sufficient to cover cost overruns on
remaining phases of project construction. The City plans to secure financing for the
entire cost of remaining phases of project construction, so if requested grant funds are
not awarded, the City can still complete the project on schedule.
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.
The requested grant funds and matching funds will complete the project. No subsequent
phases are proposed.
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, 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 community
The City does not currently have a public water system. The power line route from the
harbor to the hydro powerhouse could be used for future installation of a raw water
transmission main bringing water from Indian River to the Harbor area. The City recently
secured title to the upland area behind the harbor, and availability of a reliable source of
fresh water would help support future development in the harbor area. This water
system would require storage and, if to be used for potable purposes, treatment and
approval by ADEC. The water system could be expanded to provide potable water or
fire protection to the community.
The power line route also traverses city-owned land behind the harbor and existing
townsite. Access and availability of power in this area would support future development
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of these lands, although the City has no current plans for development in this area. This
area may include watershed recharge areas for some existing individual surface water
supplies for community residents, so development of this area would likely require an
alternate water supply for the community.
1. Projected annual fuel displacement is 30,000 gallons for the diesel power plant and
6,500+ gallons by displacing heating oil. Annual value is $182,500 at projected 2015
prices.
2. Annual utility revenues are projected to be $155,000, based on projected flat sales of
360,337 kWh, and a base rate of $0.43/kWh.
3. The utility is not aware of any applicable tax credits related to this project.
4. The utility does not intend to pursue other revenue streams beyond electricity sales.
5. Non economic public benefits include:
(a) Less noise and air pollution in the community (diesel generators would not be
running most of the time) enhancing the health and quality of life for residents and
making Tenakee a more desirable place to live.
(b) reduced haulage and handling of 36,500+ gallons of petroleum products through the
waters of Southeast Alaska annually. Reduced potential for spills and environmental
contamination.
(c) stable and more affordable electricity costs will also make Tenakee a more desirable
place to live, and will help to attract local economic activity such as tourism, fishing,
etc. The hydro combined with the hot springs will bolster the sustainability of the
community for the long term.
(d) Commercial enterprises in Tenakee in particular will benefit from lower energy costs.
Lower energy costs will make local businesses such as stores, restaurants, and
lodges more viable and competitive and will increase Tenakee's sustainability and
long term viability as a community. Tenakee has struggled in recent years to attract
and retain working families with children to keep the local school open. Affordable
energy, and the local economic activity it will encourage and support, will help
considerably in our long term efforts to help the community thrive.
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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
The project was first considered in the late 1970s, and the City worked with ADNR in the
early 1980s to put this hydro project into planning documents for Indian River. The City
commissioned a feasiblity study in the 1990s, and more recently had the feasiblity study
updated in 2008 - 2009. This long development history demonstrates the City’s
commitment to this project over the past three-plus decades.
The City of Tenakee Springs has been actively advancing this project through the study,
permitting, design, and construction stages since 2009. This effort has included the
successful completion of one prior hydro study grant, completing permitting and design
(grant awaiting closeout), and successfully completing heavy civil project construction,
which has addressed the highest geotechnical risk aspects of the project. Throughout
this process, the City has successfully managed grant budgets to achieve maximum
value to the community and the state, managing both the feasibility and
design/permitting budgets for expanded scopes of work beyond what was originally
proposed.
The City is in compliance with all required reporting to state and federal agencies.
Utility load has been relatively stable for the past 12 years (see historical load data in
Attachment G) and is expected to remain stable for the foreseeable future and the
economic life of the hydro 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
The requested grant is for additional construction funds for a project that is under
construction. The City will be ready to put funds to immediate use upon execution of the
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grant agreement by starting procurement of items that would be funded by the requested
grant. There are no phases of the work that must be completed before the phases that
would be funded by the requested grant can begin.
All necessary permits are already in place for the project and the work that would be
funded by the requested grant.
The City has permits and access agreements in place for the project and the work that
would be funded by the requested grant.
Procurement of items to be purchased by the requested grant would begin promptly
upon execution of the Grant Agreement with AEA.
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 8, 2015.
The project is included in the Southeast Regional Integrated Resource Plan (IRP)
prepared for AEA in 2012. Several local entities have provided letters of support for the
project, which are included in Attachment B. The City is not aware of any opposition to
this project.
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 has previously been awarded the following grants for this project by AEA:
1. 2008 Feasibility Study Grant. ($100,000 grant, $25,000 matching funds.
(Denali Commission funds, administered by AEA)
2. 2012 (REF Round 4) Design and Permitting Grant. $203,000 grant, $26,000 match).
3. 2014 (REF Round 6) Construction Grant. $2,988,000 grant, $322,000 match).
The City has promptly notified AEA of all project activities through regular reporting –
quarterly for pre-construction grants and monthly (or more frequently via email updates)
when construction was underway. The City has promptly responded to AEA project
manager information requests, and kept AEA advised of project schedule changes or
other changes to the project development plan.
The City has previously been awarded the following grants for other projects by AEA:
1. 2008 RPSU Grant for new bulk fuel storage and power plant.
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.
The following are included in Attachment G
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Grant Application - Standard Form
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1. Feasibility Study Final Report.
2. Project Design Drawings.
3. As-built drawings for Phase 1 and Phase 2 construction.
4. Project permit packet containing all major project permits and authorizations
5. Business and Operating Plan
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR
CONSIDERATION
In the space below please provide a list of additional information submitted for
consideration.
The following are included in Attachment G.
1. Current utility load and performance data
2. Pro forma financial analysis of project including projected rates over project life.
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Grant Application - Standard Form
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SECTION 13 – AUTHORIZED SIGNERS FORM
Community/Grantee Name:
Regular Election is held:
Date:
Authorized Grant Signer(s):
Printed Name Title Term Signature
I authorize the above person(s) to sign Grant Documents:
(Must be authorized by the highest ranking organization/community/municipal
official)
Printed Name Title Term Signature
Grantee Contact Information:
Mailing Address:
Phone Number:
Fax Number:
E-mail Address:
Federal Tax ID #:
Please submit an updated form whenever there is a change to the above
information.
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Grant Application - Standard Form
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SECTION 14 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR
APPLICATION:
A. Contact information and resumes of Applicant’s Project Manager, Project
Accountant(s), key staff, partners, consultants, and suppliers per
application form Section 3.1, 3.4 and 3.6.
Applicants are asked to provide resumes submitted with applications in separate
electronic documents if the individuals do not want their resumes posted to the
project web site.
B. Letters or resolutions demonstrating local support per application form
Section 9.
C. For projects involving heat: Most recent invoice demonstrating the cost of
heating fuel for the building(s) impacted by the project.
D. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project
at the match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of
this application.
- Certifies the applicant is in compliance with applicable federal, state,
and local, laws including existing credit and federal tax obligations.
E. An electronic version of the entire application on CD or other electronic
media, per RFA Section 1.7.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is
truthful and correct, and that the applicant is in compliance with, and will continue
to comply with, all federal and state laws including existing credit and federal tax
obligations and that they can indeed commit the entity to these obligations.
Print Name
Signature
Title
Date
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Grant Application - Standard Form
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