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HomeMy WebLinkAboutMinto Development Corp.- ApplicationRenewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 1 of 22 7/8/14 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) MINTO DEVELOPMENT CORPORATION Type of Entity: Fiscal Year End: Subsidiary, ANCSA Tribal Corporation 2015 Tax ID # Tax Status: X For-profit ☐ Non-profit ☐ Government (check one) Date of last financial statement audit: Mailing Address: Physical Address: 615 BIDWELL, SUITE 405 615 BIDWELL, SUITE 405 FAIRBANKS, AK FAIRBANKS, AK 99701 99701 Telephone: Fax: Email: 907-374-0968 907-374-0968 dougwisaacson@gmail.com 1.1 Applicant Point of Contact / Grants Manager Name: Next Energy Solution Inc. - Foley Quinn Title: Owner/ Operator Brianna Gennaro Grant Writer/ Grant Manager Mailing Address: Next Energy Solution Inc. 231 Walnut Street Spooner, Wisconsin 54801 Telephone: Fax: Email: (631) 942- 6689/ (715) 416- 3022 N/A admin@nextenergysolution.com foley@nextenergysolution.com 1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION Name: Title: Doug Isaacson General Manager Mailing Address: 615 BIDWELL AVE, SUITE 405 FAIRBANKS, AK 99701 Telephone: Fax: Email: (907) 322- 3133 dougwisaacson@gmail.com 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: Carla Dick 907-699-3393 sethdeyaahcorp@gci.net Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 2 of 22 7/8/14 Jaclyn Silas 907-374-0968 907-374-0968 Mintodevelopmentcorp@gci.net 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 X A governmental entity (which includes tribal councils and housing authorities) 1.2 APPLICANT MINIMUM REQUIREMENTS (continued) Please check as appropriate. X 1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant’s board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate by checking the box) X 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement (Section 3 of the RFA). (Indicate by checking the box) X 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as identified in the Standard Grant Agreement template at http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. (Any exceptions should be clearly noted and submitted with the application.) (Indicate by checking the box) X 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. (Indicate yes by checking the box) Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 3 of 22 7/8/14 SECTION 2 – PROJECT SUMMARY 2.1 Project Title Provide a 4 to 7 word title for your project. Type in the space below. Minto PV Solar Project 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. 101 Lakeview St, Minto AK 99758 and 101 First St, Minto AK 99758 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. The Native Village of Minto will be the prime beneficiary of this source of renewable energy. 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 X 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 X Reconnaissance X Final Design and Permitting X Feasibility and Conceptual Design X Construction Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 4 of 22 7/8/14 2.4 Project Description Provide a brief one paragraph description of the proposed project. This grant application requests $140,000.00 to assist in the purchase and installation of a 100.4 kW Photovoltaic Solar Energy System to supply a portion of the energy needs in The Native Village of Minto. It is estimated that a PV system may produce 100,405 kWh annually. Previous Electric records indicate that The Native Village of Minto uses approximately 527,000 kWh annually, so the solar panels could produce an estimated $62,262.00 of the electrical supply needs. The monthly power bills are extremely high and with a NES Solar Energy System, we hope to reduce current energy costs and to employ the use of renewable resources and to reduce dependence on fossil fuels. 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. NES has proposed to install 372- 270 Watt (100,440 watts) Peimar Solar Panels at The Native Village of Minto. The Solar Panels are specially designed to snow shed and achieve optimal performance. The panels will be connected in a series with voltage values recorded on each of the strings. The array will be grounded using a UL listed grounding system and wired for the licensed electrician to hook up to the grid upon electric company’s inspection. The eight (8) Fronius 11.4-3 kW inverters and fused AC disconnect will be mounted by the licensed electrician according to the electrical drawings supplied by NES. The inverters will have WI-FI web monitoring built- in. NES will assist in filling out interconnect contract for commissioning. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 5 of 22 7/8/14 SECTION 3 – Project Management, Development, and Operation 3.1 Schedule and Milestones Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail. Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding request. Be sure to identify key tasks and decision points in in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Add additional rows as needed. Tasks Start Date End Date Phase I - Ramp-up Activities- Final Site Evaluation and Measurements Taken. July 2016 August 2016 Phase I - Engineering Confirmed and Drawings Ordered for Licensed Electricians and Energy Company. August 2016 September 2016 Phase II- Purchase Orders Issued for PV Modules, Racking, PV Wire, Disconnects, Combiners and Panels. September 2016 October 2016 Phase III- Ground Work Completed, Purchase Orders Issued for Inverters. November 2016 November 2016 Phase IV- All Electrical Work Completed. November 2016 November 2016 Phase IV- Final Inspection Done. November 2016 November 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 Total Project Cost shall be the sum of $350,000.00. This amount includes engineering, installation, equipment, data monitoring and electrical connections by a licensed Electrician. 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. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 6 of 22 7/8/14 Milestone or Task RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See sections 2.3 thru 2.6 of the RFA ) Phase I: Engineering $2,836.00 $4,253.00 40% Grant/ 60% Grantee $7,089.00 Phase II: Peimar 270 Watt Solar Panels $68,788.00 $103,182.00 40% Grant/ 60% Grantee $171,970.00 IronRidge XR-1000 Rail(s) $7,442.00 $11,162.00 40% Grant/ 60% Grantee $18,604.00 IronRidge 28” Adjustable Tilt Leg(s) $12,480.00 $18,720.00 40% Grant/ 60% Grantee $31,200.00 IronRidge Grounding Mid- Clamp(s) $997.00 $1,495.00 40% Grant/ 60% Grantee $2,492.00 IronRidge End Clamp(s) $77.00 $115.00 40% Grant/ 60% Grantee $192.00 IronRidge XR-1000 Splice Kit(s) $517.00 $778.00 40% Grant/ 60% Grantee $1,296.00 IronRidge XR-1000 End Cap(s) $6.00 $9.00 40% Grant/ 60% Grantee $15.00 IronRidge Wire Clip(s) $213.00 $319.00 40% Grant/ 60% Grantee $532.00 IronRidge Grounding Strap(s) $216.00 $324.00 40% Grant/ 60% Grantee $540.00 IronRidge Grounding Strap- Expansion Joint(s) $53.00 $79.00 40% Grant/ 60% Grantee $132.00 IronRidge Grounding Lug T- Bolt(s) $12.00 $16.00 40% Grant/ 60% Grantee $28.00 PV Wire- 5000’ Spool $509.00 $769.00 40% Grant/ 60% Grantee $1,277.00 Disconnect- DC Panel- 100 AMP $2,400.00 $3,600.00 40% Grant/ 60% Grantee $6,000.00 Combiner Box(s) w/ Shut Off $2,880.00 $4,320.00 40% Grant/ 60% Grantee $7,200.00 Phase III: Fronius 11.4-3 Inverter(s) x 8 $23,538.00 $35,306.00 40% Grant/ 60% Grantee $58,844.00 Phase IV: Electrical Work- done by licensed electrician $17,036.00 $25,553.00 40% Grant/ 60% Grantee $42,589.00 TOTALS $140,000.00 $210,000.00 $350,000.00 Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 7 of 22 7/8/14 3.2.3 Cost Justification Indicate the source(s) of the cost estimates used for the project budget. NES has supplied a detailed invoice suggesting all engineering, labor, materials and licensed electrician be covered under in the amount of $350,000.00. The detailed invoice lists all equipment to be purchased as well as the cost of the electrician and engineering. 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 $140,000.00 Cash match to be provided $ In-kind match to be provided $210,000.00 Total costs for project phase(s) covered in application (sum of above) $350,000.00 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. I. Reconnaissance $7,089.00 II. Feasibility and Conceptual Design $241,478.00 III. Final Design and Permitting $58,844.00 IV. Construction $42,589.00 Total Project Costs (sum of above) $350,000.00 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. $Will provide, further research is necessary. 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. $ 2. Hours diesel OFF/year: 3. $ Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 8 of 22 7/8/14 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. NES will communicate with the Alaska Energy Authority (AEA) for each milestone completed. In addition, NES will be in close contact with Doug Isaacson on a weekly basis to review project achievements and milestones. NES has all contact information needed to communicate on an as needed basis in addition to the weekly progress meetings. NES will be available via phone, text and e-mail. NES will make site visits throughout the project. 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. Will provide at a later date. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 9 of 22 7/8/14 SECTION 4 – QUALIFICATIONS AND EXPERIENCE 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. Next Energy Solution Inc. 231 Walnut Street Spooner, WI 54801 Foley Quinn- Owner/ Operator Brianna Gennaro- Grant Writer/ Grant Manager 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 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 Please see the attached ‘Scope of Work’ which includes credentials. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 10 of 22 7/8/14 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. Cindy Shilling, CPA PC 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. NES will provide invoices and purchase orders at the completion of each phase of the project to be submitted for reimbursement. 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. NES plans to train locally with the help of the Alaska State Department of Corrections in order to provide the local labor workforce employment upon completion of the program. NES’s training team is in the process of obtaining any and all certifications/ licensed needed to make this possible. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 11 of 22 7/8/14 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. This 100.4 kW is expected to produce as follows: Month AC Energy (kWh) Energy Value ($) January 1390 862 February 4371 2710 March 10212 6333 April 14282 8856 May 14597 9051 June 14631 9073 July 14133 8764 August 11511 7138 September 7850 4868 October 4737 2938 November 2054 1274 December 637 395 TOTAL 100,405 $62,262 These production numbers take into account the high price per kilowatt hour as well as are engineered to the specific location’s snowfall, hours of sun and temperatures. 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 (Additional information in support of this section will be provided as soon as possible.) Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 12 of 22 7/8/14 5.2 Project Site Criteria: Stage 2-3.B: A site is available and suitable for the proposed energy system. Describe the availability of the site and its suitability for the 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. This will be a 100.4 kW Solar Energy Project, consisting of 372- 270 watt panels (64.5” x 39”/ each). Installation is intended to be roof mounted on the Minto Lakeview Lodge / Tribal Administration offices and the Minto Clinic located at 101 Lakeview St and on the Minto Northfork Store located at 101 Front St. Additional land is available by the Lodge and Clinic for ground mount installation. 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. NES is proposing to install this solar energy system on the roof tops of the above referenced addresses, in the event that we have an excess amount of panels to be installed, they will be installed on an additional patented ‘NES EZ-Set’ ground mount. 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 At this time, there are no known environmental or land use issues that apply to the proposed roof mounted installation. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 13 of 22 7/8/14 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. 3 diesel generators owned and operated by the Alaska Village Electric Coop (AVEC) have 647 kW generating capacity serving a population (2014) of 223 residents, 73 residential customers, 5 community facilities, and 19 other non-PCE customers. The 3 generators are: 168 kW (1992), 229 kW (1995) and a 250 kW (1988). There is no renewable energy generation at this time. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 14 of 22 7/8/14 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 ii. Rated capacity of generators/boilers/other: 168 kW / 229 kW / 250 kW = 647 kW total iii. Generator/boilers/other type: All Diesel iv. Age of generators/boilers/other: 1992 / 1995 / 1988 v. Efficiency of generators/boilers/other vi. Is there operational heat recovery? (Y/N) If yes estimated annual displaced heating fuel (gallons): Yes, 3,800 gallons b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor AVEC annual Operating expense for generation, not including ii. Annual O&M cost for non-labor Fuel is $0.86 /kWh, approximately $49,000 for Minto. 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] 572,418 kWh sold (2014) ii. Fuel usage Diesel [gal] 49,442 (2014) Other 0 iii. Peak Load 181 kW iv. Average Load 70.21 kW v. Minimum Load (not currently known, will provide as soon as possible) vi. Efficiency 12.42 kWh / gallon vii. Future trends (not currently known, will provide as soon as possible) 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 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 15 of 22 7/8/14 5.4.2 Future Trends Describe the anticipated energy demand in the community over the life of the project. Dependent upon the results of this initial small solar project, with an anticipated approximated 18% reduction in electric generating costs, we hope to reduce diesel usage by expanding the usage of solar and other renewable energy generation. The lowering of energy costs will stimulate greater economic opportunity in Minto that includes tourism facilities, forest products, agriculture, and other potential ventures that are energy cost affected. 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. Will provide at a later date, additional research is needed. 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 NES has proposed to install 372- 270 Watt (100,440 watts) Peimar Solar Panels at PMCF. The Solar Panels are specially designed to snow shed and achieve optimal performance. The panels will be connected in a series with voltage values recorded on each of the strings. The array will be grounded using a UL listed grounding system and wired for the licensed electrician to hook up to the grid upon electric company’s inspection. The eight (8) Fronius 11.4-3 kW inverters and fused AC disconnect will be mounted by the licensed electrician according to the electrical drawings supplied by NES. The inverters will have WI-FI web monitoring built- in. NES will assist in filling out interconnect contract for commissioning. Upon system completion, a bi-directional meter will be installed to measure the amount of energy returned to the grid, if any. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 16 of 22 7/8/14 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] 100.4 kW b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 100,400 kW h ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood or pellets [cords, green tons, dry tons] iv. Other d) i. Estimate number of hours renewable 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 that will be used to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. NES has proposed to install 372- 270 Watt (100,440 watts) Peimar Solar Panels at PMCF. The Solar Panels are specially designed to snow shed and achieve optimal performance. The panels will be connected in a series with voltage values recorded on each of the strings. The array will be grounded using a UL listed grounding system and wired for the licensed electrician to hook up to the grid upon electric company’s inspection. The eight (8) Fronius 11.4-3 kW inverters and fused AC disconnect will be mounted by the licensed electrician according to the electrical drawings supplied by NES. The inverters will have WI-FI web monitoring built- in. NES will assist in filling out interconnect contract for commissioning. Upon system completion, a bi-directional meter will be installed to measure the amount of energy returned to the grid, if any. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 17 of 22 7/8/14 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. We hope for a potential 18% rate reduction from the first 100,000 kW of solar generation. During the first year, we are anticipating a diesel displacement greater than or equal to 8,000 gallons of diesel. Currently, Minto non-PCE electric customers pay a base rate of $0.6134 per kWh which stifles economic activity and growth. Minto Development Corporation had been manufacturing wooden core sample boxes in Minto, which had employed up to 18 residents, but shop expenses were not sustainable. Lifetime costs, additional incentives and revenue streams have yet to be calculated. This system is expected to produce 100,400 kWh and $62,262.00 annually. The specified system has a life expectancy of 30 years. The inverter and solar modules have performance warrantees that cover the system throughout its lifetime. This system and all equipment included qualify for the 30% Federal Tax Credit. Additional information furnished upon request. 6.1.2 Power Purchase/Sale The power purchase/sale information should include the following:  Identification of potential power buyer(s)/customer(s)  Potential power purchase/sales price - at a minimum indicate a price range  Proposed rate of return from grant-funded project Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price range. Indicate the proposed rate of return from the grant-funded project. This information is being calculated and will be included as soon as possible. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 18 of 22 7/8/14 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. Improvements to the community by way of direct investments in public facilities, new private enterprises, payroll, etc., is still being calculated and will be provided as soon as possible. The purpose of this effort is to reduce current energy costs and to employ the use of renewable resources and to reduce dependence on fossil fuels. A system of this size is expected to achieve a number of indirect benefits such as the following: 12,048 barrels of oil NOT produced 10,843,200 miles NOT driven 88,352 lbs of acid rain emissions NOT discharged 39,708 lbs of smog emissions NOT produced And… is the equivalent of planting 21,034 trees. 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? Additional financing is being explored. The Seth-De-Ya-Ah Corporation has the capacity to cover the outstanding balance. However, legislative assistance is being pursued, as is bank loan options. 6.2.3 Cost Overruns Describe the plan to cover potential cost increases or shortfalls in funding. At this time we do not foresee any cast overruns but will provide at a later date, additional research is needed. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 19 of 22 7/8/14 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. No additional phases will be required unless we plan to expand the system at a later date. 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 Benefits from reduced electric prices could result in more development of forest land along the Elliott Highway that is still blighted by a sizable burn approximately 19 years ago. W e are investigating agriculture and greenhouse applications for food security purposes, and will be seeking collaboration with UAF and the appropriate state agencies for enhancing these developments with opportunities for research. Additionally, some of the tourism projects being considered, including an RV Park, upgraded and expanded lodging and concession services resulting in expanded facilities, will open more public opportunities for eco-tourism, pike fishing, and other activities in the Minto Flats. With the lowering of energy costs, increased employment opportunities for residents will be pursued, allowing for improvements in housing, utilities conduits, etc., by the residents. The purpose of this effort is to reduce current energy costs and to employ the use of renewable resources and to reduce dependence on fossil fuels. A system of this size is expected to achieve a number of indirect benefits such as the following: 12,048 barrels of oil NOT produced 10,843,200 miles NOT driven 88,352 lbs of acid rain emissions NOT discharged 39,708 lbs of smog emissions NOT produced And… is the equivalent of planting 21,034 trees. NES plans to incorporate a training course the local correctional facilities so we may educate on the installation process. Solar is expected to create over 100,000 new jobs in the next year and the industry has already grown 13% in the past year alone. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 20 of 22 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 21 of 22 7/8/14 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 proposed system is maintenance free. The solar modules will be mounted to shed snow and have optimal production. All electric equipment is NEMAR 3R and built to sustain freezing temperature. The proposed system will have built-in web monitoring to see in ‘real-time’ production and will archive all information the entire life of the system. This system also has a unique expandability feature to future system growth. 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 Upon grant approval, Minto Development Corp. and NES will be ready to ‘Ramp-up’ activities July 2016. This will include roof measurements and engineering. 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. Please see the attached letter of support. A letter from Carla Dick, Chief of the Minto Village Council is included. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 22 of 22 7/8/14 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. At this time, no other awards have been received to be in compliance with. 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. No prior phases have been requested or completed. SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below please provide a list of additional information submitted for consideration. NES has provided the following information for use and information: - Inverter Specification - Solar Module Specification - NREL PV Watts Production Schedule - Letter of Support