HomeMy WebLinkAbout2015 AEA Grant Submittal MOSRenewable Energy Fund Round IX
Grant Application - Standard Form
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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:
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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Grant Application - Standard Form
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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)
Municipality of Skagway Borough
Type of Entity: Fiscal Year End:
Local Government - Municipal Borough Currently June 30, working towards Dec. 31
Tax ID # 92-6000088
Tax Status: ☐ For-profit ☐ Non-profit ☒ Government (check one)
Date of last financial statement audit: June 30, 2014
Mailing Address: Physical Address:
P.O. Box 415 700 Spring St.
Skagway, AK Skagway, AK
99840 99840
Telephone: Fax: Email:
907-983-2297 907-983-2151 s.hahn@skagway.org
1.1 Applicant Point of Contact / Grants Manager
Name: Heather Rodig Title: Borough Treasurer
Mailing Address: P.O. Box 415, Skagway, AK 99840
Telephone: Fax: Email:
907-983-2297 907-983-2151 h.rodig@skagway.org
1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION
Name: Scott Hahn Title: Borough Manager
Mailing Address: P.O. Box 415, Skagway, AK 99840
Telephone: Fax: Email:
907-983-2297 907-983-2151 s.hahn@skagway.org
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
Mayor Mark Schaefer 907-983-2297 907-983-2151 mpschaefer@skagway.org
Juliene Miles 907-983-2297 907-983-2151 e.deach@skagway.org
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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)
☒ 1.2.3 As an applicant, we have administrative and financial management systems and follow
procurement standards that comply with the standards set forth in the grant agreement (Section
3 of the RFA). (Indicate by checking the box)
☒ 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. (Any
exceptions should be clearly noted and submitted with the application.) (Indicate by checking
the box)
☒ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
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SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
West Creek Hydroelectric 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.
Lat N 59⁰31’33” Long W 135⁰24’45”
West Creek area within the Corporate Boundaries of the Municipality of Skagway, Alaska.
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Skagway, AK; Dyea, AK; Haines, AK; the Yukon Territory of Canada
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
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2.4 Project Description
Provide a brief one paragraph description of the proposed project.
The Municipality of Skagway (MOS) proposes to construct the West Creek Hydroelectric Project
(Project) located on West Creek, approximately 7 miles west of Skagway and adjacent to the small
community of Dyea. The primary purpose of the Project would be offsetting diesel generation by
cruise ships that dock in Skagway during the months of May through September each year. Up to
five cruise ships per day dock in Skagway for 12-15 hours and continuously operate their diesel
plants to provide for on-board electricity consumption. The continuous stack emissions spread a
blue haze at about 1,500 foot elevation where vegetation has been noticeably affected. The Project
will improve air quality and save vegetation in the area (there may be other unknown
environmental benefits). A secondary purpose of the Project is to provide winter energy to the local
utility when they have a shortfall of hydro energy from their hydroelectric projects (Dewey Lakes
Hydro, Lutak Hydro, Goat Lake Hydro, Kasidaya Creek Hydro) as well as to sell winter energy to
other utilities in the area.
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 primary scope of work for the purposes of this grant request is to have Anchor QEA conduct
an environmental review based on the requirements of NEPA for FERC licensing. This will include
assessing potential impacts to the specific resource areas, producing a technical report that will be
supplied to FERC. This technical report will consist of eight chapters, covering the following
categories:
Transportation
Visual and aesthetic resources
Noise
Air Quality
Cultural, historic, and archaeological resources
Recreation
Socioeconomics
Environmental justice
For a detailed scope of work for each category, please see attachment “Planning-level Scope of
Work for Environmental Services for the West Creek Hydropower Project.”
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SECTION 3 – Project Management, Development, and Operation
3.1 Schedule and Milestones
Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail.
Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding
request. Be sure to identify key tasks and decision points in in your project along with estimated
start and end dates for each of the milestones and tasks. Please clearly identify the beginning and
ending of all phases of your proposed project. Add additional rows as needed.
Milestones Tasks
Start
Date
End
Date Deliverables
Project scoping and
contractor solicitation
Contract preparation;
contactor briefing;
project organization 08/15/
2016
10/31/
2016
Program status update -
Revised scope of work and
timetable; organization
chart
Resource identification and
analysis
Key personnel
review and tasking;
assignment of
physical assets
11/01/
2016
11/15/
2016
Program status update –
roles and responsibilities;
resource allocations and
resourcing
Land use, permitting and
environmental analysis
Municipal, State and
Federal regulatory
approvals
11/16/
2016
12/31/
2016
Signed permits for field
work to be conducted
FERC/NEPA impact
assessment analysis
Conduct individual
topical analyses (see
scope of work
document)
01/01/
2017
04/30/
2017
Individual draft reports for
each project segment
Final report and
recommendations
Cumulative impact
assessment;
intervener
consultations
05/01/
2017
06/15/
2017
Integrated final report and
draft FERC license
submission
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 MOS has already expended ~ $100k toward conducting a hydrologic feasibility analysis and
regulatory permitting ‘issues’ review for the West Creek hydro program. The program’s hydrologic
feasibility analysis is ongoing and the MOS now seeks to develop a preliminary FERC license
package for all NEPA requirements. This project phase is anticipated to cost ~$345k. Completion
of a full FERC submission, including hydrologic analyses is anticipated to cost ~$1m. The total
project costs for full construction and certification are estimated between $140-300m.
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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
(List milestones based on phase
and type of project. See sections
2.3 thru 2.6 of the RFA )
Project scoping and
contractor solicitation $0 $10,000.00
In-kind Municipality of
Skagway – manager
and staff time
allocations
$10,000.00
Resource identification and
analysis $0 $5,000.00
In-kind Municipality of
Skagway – manager
and staff time
allocations
$5,000.00
Land use, permitting and
environmental analysis $0 $10,000.00
In-kind Municipality of
Skagway – manager
and staff time
allocations
$10,000.00
FERC/NEPA impact
assessment analysis $280,000.00 $0 $280,000.00
Final report and
recommendations $40,000.00 $0 $40,000.00
TOTALS $320,000.00 $25,000.00 $345,000.00
Budget Categories:
Direct Labor & Benefits $ $25,000.00
In-kind Municipality of
Skagway – manager
and staff time
allocations
$25,000.00
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $320,000.00 $ $320,000.00
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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3.2.3 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget.
Cost estimates for in-kind services from the Municipality of Skagway are estimated from the
rates and anticipated time expenditures for the MOS Manager and technical staff.
Cost estimates for Contractual Services were provided by Gubala Consulting and Anchor
QEA respectfully and include individual scopes of work for:
o Transportation
o Visual and aesthetic resources
o Noise
o Air quality
o Cultural, historic, and archaeological resources
o Recreation
o Socioeconomics
o Environmental justice
o Project Management
o Results integration, intervener consultation and final report preparation and submission
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 $320,000.00
Cash match to be provided $
In-kind match to be provided $ 25,000.00
Total costs for project phase(s) covered in application (sum of above) $345,000.00
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.
Reconnaissance $500,000.00
Feasibility and Conceptual Design $
Final Design and Permitting $450,000.00
Construction $
Total Project Costs (sum of above) $
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.
$ N/A
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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. $ 2,234,289 (Haines & Skagway)1
2. Hours diesel OFF/year: 8,760 hours
3. $1,500,000
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.
The MOS PM will establish a weekly reporting protocol for the project contractors and provide bi-
weekly progress summaries to the MOS Manager and Assembly and monthly summaries to the
AEA. Requests for schedule or budget deviations will be routed through the PM and advanced to
MOS assembly for approval. AEA will be immediately informed of any such changes.
Upon project completion, the MOS PM will personally present the findings to the AEA in both
written and presentation format, with copies of both the report and presentation notes made public
through the AEA.
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.
N/A
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
1 FY14 AEA PCE Statistical Report By Community Amended. Annual Non-Fuel Expenses. p. 65 and p. 150.
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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 MOS project manager for this initiative is:
Dr. Chad P. Gubala, Ph.D.
cpg@gubalaconsulting.ca
Resume attached (CPG resume 2015 June).
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
Applicant: Municipality of Skagway
Contractor: Anchor QEA
Partner: AP&T
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.
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Accounting for the Municipality of Skagway’s West Creek Hydroelectric Project will be performed
by the Borough Treasurer, Heather Rodig. Please see attached resume for further detail.
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 costs allocated to this project will be submitted to the borough manager for review, approval &
account coding before being processed. The treasurer will perform a second review of costs at
each reimbursement interval (monthly or quarterly) to ensure costs are reasonable, ordinary and
reasonably associated with the project.
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.
The project will include the use of field technicians from the MOS for data collections, information
retrieval and other local services.
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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.
Refer to attached documents.
Alsk Yukon Ec Corr Viability Analysis Memo_Final (3)
RPT3-2015-03-20-SE Alaska Yukon Ec Dev Exec Summ_fkp-5140420
MEMO-2014-12-11-SE Alaska Yukon TL technical memo-5140420
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
Land use access (MOS), and biological collection permits (ADF&G) are the anticipated permissions
and permits. MOS access timetable is within one week of submission. ADF&G is anticipated to be
less than one month.
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.
The location for the proposed facility is within the West Creek catchment on property wholly owned
by the proponent, the municipality of Skagway. No ownerships issues are anticipated.
5.3 Project Risk
Criteria: Stage 2-3.C: Project technical and environmental risks are reasonable.
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
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There are no substantive technical risks in the preparation of a NEPA FERC licensing package.
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
In 1982 R.W. Beck conducted a feasibility study of this site for the AEA. In section 9 of that study is
a copy of the Environmental Analysis of the large storage project proposed at that time. Below are
comment pulled from that analysis.
Threatened or endangered species:
The 1982 AEA report states this site has no Federally listed endangered or threatened species
residing in it. Field studies may still be conducted for this site, but impacts to such species are not
anticipated.
Habitat Issues:
The 1982 AEA report, the large project proposed at that time, states that impacts of resources are
expected to be minimal because West Creek contributes only 30% of the total flows of the Taiya
River. Fish habitat surveys will still likely need to be conducted, but the creek has been identified
by ADF&G as having Coho rearing habitat (Stream No. 115-34-10230-2009) in the lower part.
There is black bear habitat that with large reservoir would impact some of their home range.
According to the 1982 AEA report, impacts to wildlife habitat in general are expected to be minimal.
Wetlands:
The only wetland is the creek itself. If a storage reservoir is developed, then additional wetlands
will be created in the valley (the reservoir) that may benefit both avian and furbearer species.
Archaeological Resources:
A review of archeological resources will be conducted under the scope of work of this grant
proposal for the project. The project is near the Klondike Gold Rush National Historic Park,
therefore it is imperative that an archeologist review this site.
Land Development Constraints:
There are no known land development constraints at this time.
Telecommunications Interference:
The 34.5kV transmission line does not create interference with telecommunications. This size of
conductor is frequently found on the same pole with telephone lines, as they are also found to
coexist on AP&T’s poles. For the Project, part of the transmission line is likely to be buried. Higher
voltages can cause interference however.
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Aviation Considerations:
The project does not pass by an airport and the wood poles will only be about 45 feet in height,
well below any flight pattern. The ROW for the transmission line is bordered by forest on both
sides and trees in the area are generally as tall as the poles or taller so that flying would be
problematic regardless of transmission line.
Visual, Aesthetic Impacts:
A review of visual and aesthetic resources will be conducted under the scope of work of this grant
proposal for the project.
Potential Barriers:
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.
AP&T serves Skagway as part of its Upper Lynn Canal (ULC) system, which includes the following
generating units:
Unit Type Capacity, kW Efficiency, kWh/gal Age, years
Goat Lake Hydro (storage) 4,000 N.A. 17
Dewey Lakes Hydro (run-of-river) 943 N.A. 113
Lutak Hydro (run of river) 285 N.A. 14
10-Mile2 Hydro (run of river) 600 N.A. 13
Kasidaya Creek Hydro (run of river) 3,000 N.A. 7
Skagway #6 Diesel 855 14.69 29
Skagway #7 Diesel 1,100 14.80 19
Skagway #8 Diesel 500 14.89 24
Skagway #9 Diesel 930 13.3 30
Haines #1 Diesel 800 12.64 46
Haines #2 Diesel 1,265 12.93 19
Haines #4 Diesel 2,865 12.83 20
Haines and Skagway are interconnected by a 15-mile long 34.5-kV submarine cable with a capacity
of approximately 20,000 kW. Skagway and Dyea are connected by a 7.3-mile long 7.2-kV distribution
line, and Haines and the IPEC system are connected by a 10-mile long 12.47-kV distribution line.
2 AP&T purchased power from Southern Energy’s 10-Mile hydro project until 2002. Purchases resumed in 2008 and
continue to the present.
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3 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 Railbelt3 grid, leave this section blank)
i. Number of generators/boilers/other 5 hydro units, 8 diesel [Upper Lynn Canal AP&T grid]
ii. Rated capacity of generators/boilers/other 8,828 kW hydro, 9,915 kW diesel
iii. Generator/boilers/other type Hydro and diesel
iv. Age of generators/boilers/other Varies
v. Efficiency of generators/boilers/other
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 $125,000 approx.
ii. Annual O&M cost for non-labor $134,000 approx., excluding diesel fuel
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] 27.4 GWH generation (2014)
ii. Fuel usage
Diesel [gal] 67,000 gal/yr. (2001-2010 avg.)
Other
iii. Peak Load 4,900 kW
iv. Average Load 2,900 kW (2010)
v. Minimum Load 1,500 kW
vi. Efficiency Varies (13.8-14.0 kWh/gal diesel, 80-85% hydro)
vii. Future trends Modest growth
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
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5.4.2 Future Trends
Describe the anticipated energy demand in the community over the life of the project.
The primary purpose of the Project would be offsetting diesel generation by cruise ships that dock in
Skagway from May through September each year. Up to five cruise ships per day dock in Skagway
for 12-15 hours and continuously operate their diesel plants to provide for on-board electricity
consumption. The continuous stack emissions spread a blue haze at about the 1,500 foot elevation
where vegetation has been noticeably affected. The Project will improve air quality and save
vegetation in the area (there may be other unknown environmental benefits). To emphasize how
serious the air quality of the area is being taken, the National Park Service, Municipality of Skagway,
and Alaska Power & Telephone Company (AP&T) have a cooperative agreement that placed and
maintains equipment at AP&T’s Dewey Lakes Hydro project site to monitor this pollution.
Since the stream is glacial, flows are very high in the summer, which is also when the cru ise ships
are active. This fortuitous coincidence between flow and load allows for a relatively large installed
capacity with little or no storage. Preliminary analysis indicates that a Project with a capacity to serve
one large cruise ship could be operated on a run-of-river basis. Increasing the capacity so the Project
could serve two or three cruise ships is possible, but a storage reservoir would be required to make
the generation dependable.
AP&T’s ULC system is primarily hydroelectric generation with diesel backup. In recent years diesel
has been needed for peaking operations and at the end of some long winters.
This project would not have an impact on the existing energy (AP&T) resources which are solely
dedicated to providing power for the residential and commercial customers of ULC. The existing
energy resources can in no way handle even one cruise ship at this time. The Project would not
replace or share the load with any existing generating resources. The Project could provide backup
renewable energy for the ULC system in the event of an emergency, e.g. an extended outage of the
Goat Lake hydro project.
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.
The potential power buyer would be the cruise lines that have ships dock in Skagway. Concepts for
power purchase agreements will be discussed with the cruise lines in Phase II. The intent of the
agreements will be to set a rate which is less than the cost of self-generation by the cruise ships, yet
provides an adequate return to the Municipality and the State. The Municipality’s preliminary
economic analysis for the Project assumes a sales price of $0.252/kWh in 2015, escalating at 2.75%
per year. That price is 90% of the expected cost of self-generation by the cruise ships with diesel
fuel at $3.88/gallon. The analysis also assumes that fuel prices and the power sales rate are constant
after 20 years. Under these assumptions, the calculated rate of return is 6.4%. The calculated
savings over 50 years is $165,000,000 by the cruise lines and $268,000,000 by the Municipality and
State. Clearly, this Project has the potential to be a significant source of income for both the
Municipality and the State.
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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
Renewable energy technology specific to location:
The Project will be a conventional run-of-river or storage hydroelectric project with an installed
capacity of as much as 25 MW. The exact configuration of the Project will be determined during
Phase II. Hydroelectric technology is well developed, and provides most of the renewable energy
generated in the world in general, and in Alaska in particular. The Project will utilize the rain, snow,
glacial melt and steep topography afforded by the West Creek basin to generate renewable energy.
Optimum Installed Capacity:
25 MW (to be confirmed by Phase II studies)
Anticipated capacity factor:
12% (to be confirmed by Phase II studies)
Anticipated Annual Generation:
27 GWh (to be confirmed by Phase II studies)
Anticipated Barriers:
No technological barriers.
Basic Integration Concept:
AP&T’s ULC system is primarily hydroelectric with diesel backup. Integration of the comparatively
large Project into the existing system will require that the Project be well-governed, however, that is
not an unusual or difficult requirement. The cruise ship loads are expected to be relatively easy to
control. Note that AP&T also has experience with connecting cruise ships to local grids as they
designed much of the hookup at Juneau for AEL&P.
The Project could be developed as a completely independent system from AP&T’s ULC system, but
that would eliminate some of the auxiliary benefits of the Project.
Delivery Methods:
Delivering power to the Skagway dock will require approximately 12 miles of new or upgraded
transmission line, as well as new switchyards, substations, and shorepower switches and
connections. The optimum arrangement for these facilities will be determined during Phase II.
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
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a) Proposed renewable capacity (Wind,
Hydro, Biomass, other)
[kW or MMBtu/hr]
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 76-106 GW.h/year
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.
N/A
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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.
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.
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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.
Renewable energy resource availability (kWh per month)
Estimated sales (kWh)
Revenue for displacing diesel generation for use at private sector businesses ($)
Estimated sales (kWh)
Revenue for displacing diesel generation for use by the Alaskan public ($)
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?
6.2.3 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
The MOS will either provide internal or external funding for cost over-runs.
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.
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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
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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 Municipality of Skagway has professional administrative and financial staff and systems to
manage and maintain this project. Annual audits and personnel training and experience confirm
this fact.
The Municipality of Skagway is current on all loans and required reporting to state and federal
agencies.
Prior studies of this resource have identified it as a preferred and likely successful hydroelectric
project for Northern South-East Alaska. Please see the attached Alaska Yukon Economic Corridor
Viability Analysis. It is likely that the resource is available over the life of the project and that there
is more than sufficient market for the energy produced over the life of the project.
SECTION 8 – PROJECT READINESS
Describe what you have done to prepare for this award and how quickly you intend to proceed with
work once your grant is approved.
Specifically address your progress towards or readiness to begin, at a minimum, the following:
The phase(s) that must be completed prior to beginning the phase(s) proposed in this application
The phase(s) proposed in this application
Obtaining all necessary permits
Securing land access and use for the project
Procuring all necessary equipment and materials
No phases are left to be completed prior to beginning the phase proposed in this application. The
phases are explained in the attached Planning-level Scope of Work for Environmental Services for
the West Creek Hydropower Project.
We will proceed immediately if grant is approved to obtain all necessary permits, land access and
procurement of necessary equipment and materials.
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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 Skagway Borough Assembly approved this grant application per Resolution No. 15-35R,
attached.
A 2014 memorandum of understanding between the Municipality of Skagway and AP&T outlines
details of the collaboration between the two entities for furthering the West Creek Hydr opower
Project. This MOU was approved by the Skagway Borough Assembly in August of 2014 and is
attached.
In preparation for the Municipality of Skagway’s West Creek Master Plan, the community was
surveyed regarding land use in West Creek, with several questions specific to the development of
hydroelectric power in West Creek. Responses show that 44% of the citizenry supported a hydro
project in West Creek, while 31% did not support it, and 24% said it “depends.” This survey is
attached, and applicable sections are highlighted in yellow.
Yukon Energy continues to support the Municipality’s efforts to further investigation of the W est
Creek Hydroelectric project; Yukon Energy’s support letter is attached.
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.
In 2010 the Municipality of Skagway received an AEA grant in the amount of $44,200 with a match
of $75,800. These grant funds went towards upgrades to the Skagway School heating system. All
requirements for this grant were met within the time period specified in the grant agreem ent.
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 attached West Creek Briefing document dated May 2014 identifies our project formation plan
much of which is now accomplished and well identifies the overall West Creek hydroelectric
location and framework.
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SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below please provide a list of additional information submitted for consideration.
Planning-level Scope of Work for Environmental Services for the West Creek Hydropower Project
Alaska Yukon Economic Viability Analysis Memo
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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 Scott A. Hahn
Signature
Title Skagway Borough Manager
Date 9/15/2015