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HomeMy WebLinkAboutAEA Renewable Energy Fund Round IX - Atqasuk Transmission - finalRenewable Energy Fund Grant Application Atqasuk Transmission Line Design & Permitting Round IX North Slope Borough Project Location: Atqasuk, Alaska Renewable Energy Fund Round IX Grant Application -Standard Form Application Forms and Instructions I~ ENfRGY PUTHORITY 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/Renewab le-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 sca lfa@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. AEA 15003 Page 2 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I~ ENERGY ALJTHORITY • In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. AEA 15003 If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. Page 3 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form SECTION 1 -APPLICANT INFORMATION I~ ENERGY AUTHORITY Please specify the legal grantee that will own, operate, and maintain the project upon completion . [ Name (Name of utility, IPP, loc al g overnment, or other government entity) [ No rt h Slope Bo rough Type of Entity: Fiscal Year End: Government and Electric Utility 06/30/2015 Tax ID # Tax Status: D For-profit D Non-profit 181 Government (check one) Date of last financial statement audit: Mailing Address: Physical Address: PO Box 69 127 4 Agvik Street Barrow, AK 99723 Barrow, AK 99723 Telephone: Fax: Email: (907) 852-0467 (907)-852-4145 Timothy.rowe @north-slope.org I 1.1 Applicant Point of Contact I Grants Manager Name: Title: Timothy Rowe Grants Administrator Mailing Address: PO Box 69 Barrow, AK 99723 Telephone: Fax: Email: (907) 852-0467 (Tim) (907) 852 4145 Timothy.rowe @north-slope.org 1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION I Name: Charlotte E. Brower Title: Mayor Mailing Address: PO Box 69 Barrow, AK 99723 I Telephone: Fax: Email: I c9o7) 852-o2oo (907) 852-0337 Charlotte.Brower@north-slope.org I 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: Timothy Rowe 907-852-0467 907-852-4145 timothy. rowe@ north-slope. org Richard SanJose 907-852-0863 907-852-0251 richard .sanjose@north-slope.org AEA 15003 Page 4 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I~ ENERGY AUTHORITY 1.2 Applicant Minimum Requirements Please check as appropriate. If applicants do not meet the minimum requirements, the application will be rejected. 1 1.2.1 Applicant Type ~ An electric utility holding a certificate of public convenience and necessity under AS 42.05, or D An independent power producer in accordance with 3 MC 107.695 (a) (1), or ~ A local government, or D 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 authori !y_ is necessary. _{Indicate by_ checkif!g 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 httQ ://www .akenerg yauthority.org/Programs/Renewable-Energy-Fund/Rounds#rou nd9 . (Any exceptions should be clearly noted and submitted with the application.) (Indicate by checking the box) ~ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. (Indicate yes by checking the box) AEA 15003 Page 5 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form II SECTION 2-PROJECT SUMMARY 2.1 Project Title I~ EN ERG( Mm¥JRITY Provide a 4 to 7 word title for your project. Type in the space below. Atqasuk Transmission Line Design and Permitting I 2.2 Project Location 2.2.1 Location of Project -Latitude and longitude (preferred), street address, community name. or 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. Physical location: area of the North Slope between the communities of Atqasuk and Barrow. Atqasuk, AK 70.48122-157.42 Barrow, AK 71.291526-156.9 2.2.2 Community benefiting -Name(s) of the community or communities that will be the beneficiaries of the project. The City of Atqasuk will be the beneficiary of this project. 2.3 Project Type Please check as appropriate. I 2.3.1 Renewable Resource Type D Wind D Biomass or Biofuels (excluding heat-only) D Hydro, Including Run of River D Hydrokinetic D Geothermal, Excluding Heat Pumps 181 Transmission of Renewable Energy D Solar Photovoltaic D Storage of Renewable 181 Other (Describe) Transmission of D Small Natural Gas electricity generated by natural gas in lieu of diesel fuel for both power and heat j 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction 0 Reconnaissance 181 Final Design and Permitting 0 Feasibility and Conceptual Design 0 Construction AEA 15003 Page 6 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I~ ENERGY AUTHORITY 2.4 Project Description Provide a brief one paragraph description of the proposed project. This phase of the Barrow to Atqasuk Transmission Line Project is for final design and permitting required for the construction of the transmission line and conversion of homes and buildings in Atqasuk to electric space heating. 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. Contractor solicitation, environmental studies and permitting, site control, a final cost estimate, and final design of the transmission line and electric heating conversion for buildings and residences in Atqasuk comprise this phrase of the project. II SECTION 3 ..... Project Managemen~ Development, and Operation · 13.1 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. Start End Milestones Tasks Date Date Deliverables Project Scoping and Request and review sealed bid Contractor documents for the selection of Solicitation the contractor. 1/1/16 4/1/16 Environmental Cultural resources surveys, Studies wetlands survey and ESA consultation materials 7/1/16 12/31/16 NEPA Document Prepare environmental impact support and miti g ation report 7/1/16 1/31/17 Permits, right of Obtain Federal, State and local way, site control agency permits com p lete 7/1/16 4/30/17 Geotech I Survey Survey alignment and prepare Reports report 8/1/16 10/31/16 Resolution of Land Utilize survey results to identify use, right of way land use and right of way issues issues and resolve 11/1/16 4/30/17 Final Design Prepare COs, material specs, structure layout drawings 11/15/16 8/31/17 Final Cost Estimate Complete final cost estimate 7/1/17 8/31/17 Update Economic Complete revised economic and financial and financial analysis analyses 7/1/17 8/31/17 Heat conversion Prepare drawings for home design and building facilities conversion to electricity. 8/15/16 12/31/16 AEA 15003 Page 7 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form Prepare estimates Heat Conversion Prepare final design and final design construction documents 3.2 Budget 1/15/17 4/31/17 Criteria: Stage 2-1.8: 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 North Slope borough is seeking $2,017,818 from the AEA Renewable Energy fund for design and permitting. NSB will match this amount with resources valued at $201,782. 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, (1. Reconnaissance, II. Feasibility and Conceptual Design, Ill. Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail your proposed project's total budget. Be sure to use one table for each phase of your project. The milestones and tasks should match those listed in 3.1 above. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA at 907-771-3031 or by emailing the Grants Administrator, Shawn Ca/fa, at sca/fa@aidea .org. Source of Matching RE-Fund Grantee Funds: Milestone or Task Grant Matching Cash/In-kind/Federal TOTALS Funds Funds Grants/Other State Grants/Other (List milestones based on phase and type of project. See sections $ $ $ 2.3 thru 2.6 of the RFA) Project Management $100,354 $40,246 Cash $140,600 Environment 0 0 Environmental Studies $102,273 $10,227 Cash $112 ,500 NEPA Doc Support $22 ,636 $2 ,264 Cash $24,900 Permits $22,636 $2,264 Cash $24 ,900 Engineering 0 $0 Geotechnical I Survey $363,636 $36,364 Cash $400,000 Reports Basics of Design $387,273 $38,727 Cash $426,000 Document Final Line Design $485,646 $18,354 Cash $504 ,000 ATQ Energy Conversion 0 $0 Design Heat Conversion Design $162,000 $16,200 Cash $178.200 AEA 15003 Page 8 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form 65% Ht Conv Final Design & $189,545 $18,955 CO's Contingency @ 1 0% $181,818 $18,182 TOTALS $440,000 $44,000 Budget Categories: Direct Labor & Benefits $0 $33,446 Travel & Per Diem $0 $6 ,800 Equipment $0 $0 Materials & Supplies $0 $0 Contractual Services $1 ,836 ,000 $143 ,354 Construction Services $0 0 Other $181 ,818 $18 ,181 TOTALS $2,017,818 $201,782 AEA 15003 Page 9 of29 I~ ENERGY AUTHORITY Cash $208,500 Cash $200,00 $484,000 In-kind $33,446 Cash $6,800 $0 $8 ,800 Cash $1,879 ,000 $0 Cash $200,000 $2 ,219,600 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I~ ENERGY AUTHORrTY 3.2.3 Cost Justification Indicate the source(s) of the cost estimates used for the project budget. The cost estimate was prepared as part of the conceptual design phase of the project. The estimates are based on the engineering estimates prepared. 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 $ 2,017,818 Cash match to be provided $168,336 In-kind match to be provided $33,446 Total costs for project phase(s) covered in application (sum of above) $2,219,600 3.2.5 Total Project Costs Indicate the anticipated total cost by phase of the project (including all funding sources). actual costs for completed phases. Reconnaissance $11,000 Feasibility and Conceptual Design $198,875 Final Design and Permitting $2,219,600 Construction $ 17,342,800 Total Project Costs (sum of above) $ 19,772,275 3.2.6 Operating and Maintenance Costs Use O&M costs can be estimated in two ways for the standard application. Most proposed RE projects will fall under Option 1 because the new resource will not allow for diesel generation to be turned off. Some projects may allow for diesel generation to be turned off for periods of time; these projects should choose Option 2 for estimating O&M. Options O&M Impact of proposed RE project Option 1: Diesel generation ON For projects that do not result in shutting down $ 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. 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 1. $ diesel generation 2. Hours diesel OFF/year: 2. Estimated hours that diesel generation will be off per year. 3 . $240,000 3. Annual O&M costs associated with the proposed renewable project. AEA 15003 Page 10 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form 3.3 Project Communications I~ ENERGY AUTHORITY 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 North Slope Borough will assign a project manager whose responsibilities will include compiling periodic progress reports for use by the Authority. Weekly and monthly project coordination meetings will be held with the project team to track progress and address issues as they arise. 3.4 Operational Logistics Criteria: Stage 2-1.0: 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. Once constructed, the transmission line between Barrow and Atqasuk will fall under the North Slope Borough's operations and maintenance program. These costs will be borne by revenue from the sale of electricity to the residents of Atqasuk . I 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 2-2.8: 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 2-2.0: 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 North Slope Borough's approach to this project, and its overall energy upgrade program, is to use a team approach consisting of North Slope Borough staff, external consultants and general contractors. Mr. Richard San Jose will be the Program Manager and the contact for any technical AEA 15003 Page 11 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I~ ENERGY AUTHORITY questions. Mr. Timothy Rowe is the Grants Administrator and will handle grant paperwork, amendments, and financial matters. Resumes for Mr. San Jose and Mr. Rowe are attached. NSB provides a project team from its operating staff. The Program Manager (PM), Richard San Jose, provides oversight to Project Administrators (PA) who interface with the Engineering Consultant and General Contractor. The PM and PA group provides internal focus and coordinates te development, planning, construction, and reporting for special projects . The Engineering Consultant of the NSB provides technical input on design, feasibility, generation and distribution issues to the team . Additionally, the engineering group provides specifications, design and drawings for North Slope Borough construction of diesel power plants and distribution systems . The Engineering Consultant provides construction administration and commissioning input on behalf of new construction performed by the NSB contractor. The manager of administrative services, Timothy Rowe, provides support in accounting, payables, financial and progress reporting, and capitalization of assets in accordance with NSB guidelines. The project management team's structure is designed to provide flexibility for the NSB participants. They have operational as well as project development responsibilities to the Borough. This project is being funded and completed in phases. This approach works well with NSB's management style . The functional-interface relationships allow engineering tasks, village government, public relations tasks, procurement functions, and internal construction operations to be dovetailed into the project development process. Cross-utilization of talent and resources is an advantage to the project delivery process, providing economies of scale for using project resources . For project delivery , an amalgamated team approach is utilized. To support the NSB team, design consultants and construction services managers are selected. Practitioners of both disciplines are drawn from a resource bank of professional firms with relevant histories of performance in rural Alaska. The construction services manager works concurrently with the design consultant through design development to provide constructability insight and value engineering to maximize the overall effectiveness of the final construction documents. Though a contract currently exists with Leland A Johnson & Associates for the completion of the feasibility and conceptual design phase of the project, NSB procurement standards require a solicitation of sealed bids for this contract size . Upon receipt and inspection of the bids following NSB procurement standards, the contract would be awarded. We anticipate this will occur within 90 days of the end of the current phase of the project. I 4.1.2 Expertise and Resources Describe the project team including the applicant, partners, and contractors. Provide sufficient detail for reviewers to evaluate: • the extent to which the team has sufficient knowledge and experience to successfully complete and operate the project; • whether the project team has staffing, time, and other resources to successfully complete and operate the project ; • how well the project team is able to understand and address technical, economic, and environmental barriers to successful project completion and operation . 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 AEA 15003 Page 12 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I~ ENERGY AUTHORITY 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 applica nt would like those excluded from the web posting of this application The North Slope Borough will ultimately be responsible for successful completion of the project, using partners that have successfully installed similar systems in the recent past. Electrical system engineering will be subcontracted, using current internal procurement practices and selection of engineering service providers from prequalified organizations. The contracted A&E firm will complete the design for the project. The North Slope Borough will subcontract for the construction of the foundations and the contracted A&E firm will manage that construction . I 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 Project Accountant assigned to this project will be Ms. Eva Leavitt. Ms. Leavitt has eight years ' experience as both a grants administrator and grant accounting specialist within the Grants Division. Ms. Leavitt's work is supervised by our Grants Accounting Manager and Governmental Accountant. Her resume is attached for your review . I 4.1.4 Financial Accounting System Describe the controls that will be utilized to ensure that only costs that are reasonable, ordinary and necessary will be allocated to this project. Also discuss the controls in place that will ensure that no expenses for overhead , or any other unallowable costs will be requested for reimbursement from the Renewable Energy Fund Grant Program . The North Slope Borough is a municipal corporation governed by an elected mayor and seven-member assembly . The accounting system uses the U.S. generally accepted accounting principles (GAAP) established by the Governmental Accounting Standards Board (GASB). The NSB Administration and Finance Department ensures the financial integrity of the NSB in a manner that meets or exceeds regulatory standards. All documents that initiate an encumbrance or payment are approved through the Director's office . The NSB utilizes an AS400-based JD Edwards system for its accounting. The system allows for division of funds to track each project separately. For grants, a separate document is also maintained to ensure that the expenditures are tracked in the budget categories prescribed in the grant agreement. Both systems are subject to audit review during the single audit process. 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 . AEA 15003 Page 13 of29 7/8114 Renewable Energy Fund Round IX Grant Application -Standard Form ~ SECTION 5 -TECHNICAL FEASIBILITY 5.1 Resource Availability ~~ENERGY AUTHORITY 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 . BARROW Natural gas in Barrow is a known and developed energy resource. It consists of three gas fields that provide energy for power and heat in Barrow. The current reserve estimates for each field are : South Barrow Gas Field: East Barrow Gas Field: Walakpa Gas Field: Total: 8 to 9 billion cubic feet 5 to 10 billion cubic feet 150 to 240 billion cubic feet 163 to 259 billion cubic feet Currently, Barrow consumes about 1.5 billion cubic feet of gas each year. At this consumption rate the gas fields will provide energy for approximately 120 years. Gas availability is unlikely to be a concern for Atqasuk because that community's demand will be less than 5% of Barrow's demand . ATQASUK Wind: The Atqasuk Wind Resource Report prepared in 2010 shows the wind power class at Level 3-4 (fair), which is typical of inland villages. The low rating adversely affects the economics of wind power, a technology that has not yet been proven on the North Slope, though the Borough did demonstrate a wind power class of 5-6 (very good) in the coastal community of Kaktovik and is pursuing a wind power development project there . Wind power was evaluated in the "Energy Options for the City of Atqasuk" and was determined not to be economically feasible at this time . Coal: Atqasuk has coal deposits that were mined in the 1950s to provide energy to the BIA school in Barrow and for local residents' consumption. In the late 1980s, NSB operated a small surface mine that was used on a local coal demonstration project. The operation was small, providing coal for home heating . Small scale coal technology to handle both power and heat in Atqasuk was evaluated in the "Energy Options for the City of Atqasuk" and was determined not be economically feasible. Regional energy distribution system: In the broad, long-term view, other resources may be enhanced by the transmission line . In the future, the village of Wainwright could be tied into the Barrow-Atqasuk transmission line. Coal-bed methane has been discovered and may prove viable in the future . AEA 15003 Page 14 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I~ ENERGY AUTHORITY Further down the coast near the village of Point Lay lies the western arctic coal reserves, a source of high-BTU and low-sulfur coal in vast quantities representing 10% of the world's coal resource . A power network connecting all the villages from Barrow to Point and possibly Red Dog mine, Kivalina, and Noatak could be powered from this resource for a very long time. 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 List of applicable perm its and timeline Federal: • BLM Right-of-Way Permit-July 2016 to May 2017 • Wetlands Permit (section 404 and 1 0) -July 2016 to April 2017 State : • State of Alaska Use Permit-July 2016 to August 2016 • State of Alaska Easement-July 2016 to August 2016 • Fish Habitat Permit (Title 16) -July 2016 to April 2017 Borough: • Certificate of IHLC!TLUI Clearance, Form 500-July 2016 to August 2016 • NSB Land Use Permit-July 2016 to August 2016 • Village District Permit, Form 700-July 2016 to August 2016 Potential Barriers • BLM Right-of-Way-Consultation with the BLM is needed to determine the required level of documentation (Cat-Ex, EA or EIS). If an EIS is required the process could take 6 months to several years depending on BLM's requirements • Wetlands Permit (section 404 and 1 0)-USACE request for field study anticipated 5.2 Project Site Criteria: Stage 2-3.8: 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. Organizations, communities and others that will be impacted by land ownership issue include: • City of Atqasuk • Arctic Slope Regional Corporation (ASRC) • Ukpeagvik lnupiat Corporation (UIC) • Bureau of Land Management (BLM) • Native Allotments AEA 15003 Page 15 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I~ ENERGY AUTHORITY City of Atqasuk : The community of Atqasuk originally supported a transmission line project in Resolution 81-3 in 1981. Since representatives from the village were on the project team during the Energy Options for the city of Atqasuk study in 2008, representatives from Atqasuk made up the Steering Committee that formed and monitored the progress of the Atqasuk Transmission Line Feasibility Study in 2011. The mayor and lead power plant operator of Atqasuk were involved in providing data, assisting the project team visit, and monitoring the progress of the Atqasuk Transmission Line Preliminary Engineering Study. The same two representatives will also provide oversight and local input throughout this project. ASRC and UIC : Both local Native Corporations are landowners on the North Slope and provided the Borough with letters of concurrence to construction a power line across their lands in 1981 . In addition, both the National Petroleum Reserve Act of 1976 and the Barrow Gas Field Transfer Act of 1984 obligate both Native Corporations to provide right-of-way easements to permit the NSB to supply local energy resources to Barrow, Atqasuk, and Wainwright. The Transfer Act specifically mentions " ... including the transmission of electricity from the Barrow Gas Field , or from any other source of energy chosen by the NSB, to supply Barrow, Wainwright, and Atqasuk." It is our intent to keep all landowners involved throughout this project by holding public meetings . Native Allotments: The most significant concern may be native allotments. The native allotments in the project area have been well-documented by the NSB. Since a transmission line is a physically flex ible infrastructure component, we can avoid native allotments by carefully routing the line. To date the NSB has avoided all known allotments and has applied the Native Village of Barrow's minimum clearance of 200 feet between construction and native allotments. 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 . Logistics , construction activities, and weather all present significant known risks. The North Slope Borough routinely purchases Builder's Risk insurance to mitigate its exposure to these risks. NSB and its contracted A&E firms have extensive experience completing projects under very similar circumstances as this one, which reduces risk. Crucial to successful completion of projects in these environments are advanced planning and flexible timing. The NPRA Act and 1984 Barrow Gas Fields Transfer Act allow for the extension of natural gas from Barrow's gas field to surrounding NSB communities via gas pipeline or electric power transmission. Both UIC and ASRC signed agreements to provide right-of-way access across their lands for the purpose of extending Barrow Gas to surrounding North Slope communities. Every effort has been made during previous work to avo id routing the transmission line near native allotments. Any environmental issues that arise will be addressed by adjusting the route corridor, technology, or both so that permits can be obtained . 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 AEA 15003 Page 16 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerat ions • Visual, aesthetics impacts • Identify and describe other potential barriers Threatened or endangered species ~~ ENEJGY AUTliORITY Three federally listed threatened species (Spectacled Eider, Steller's Eider, and polar bear) and one candidate species for listing (yellow-billed loon) occur in the project area. We would seek an Endangered Species Act Clearance from the USFWS. Formal consultation may be required to determine if "take" under ESA would occur. We would need to ensure that construction of the transmission line would have no harmful impact on threatened species . Construction would be timed to avoid impacts to migratory birds in compliance with the Migratory Bird Treaty Act. Habitat issues The project could involve crossing anadromous fish streams, requiring a Fish Habitat Permit in consultation with the Alaska Department of Fish and Game. We would need to ensure the project would not impact any state refuges, sanctuaries, or critical habitat areas, as well as federal refuges, wilderness areas, or national parks. Wetlands and other protected areas The project could involve placing utility poles in wetlands under the jurisdiction of the U.S . Army Corps of Engineers (USAGE), and would therefore require a Wetlands (Section 404 and Section 1 0) Permit. A Wetlands Permit would also be required if any poles were placed below ordinary high water of any navigable stream. Archaeological and historical resources There is the potential to find cultural or historic resources in the project area. In accordance with the National Historic Preservation Act, the undertaking would need to be reviewed by the Alaska Department of Natural Resources (ADNR) State Historic Preservation Office (SHPO). During formal Section 106 consultation, the SHPO would determine whether additional surveys and mitigation would be required. In addition to the Section 106 process, the project would need to receive an approved Certificate of lnupiat History, Language and CulturefTraditional Land Use Inventory (IHLCfTLUI) Clearance from the NSB . Land development constraints Because the Barrow -Atqasuk intertie project would cross land owned by the State of Alaska , a Land Use Permit would be needed from the Alaska Division of Natural Resources (ADNR) Division of Mining, Land and Water (DMLW). A permanent utility easement and temporary water use authorization could be required by this agency, as well. Also, as this project would occur within the NSB and two village districts, a NSB Land Use Permit and Form 700-Village District Permit would be required. The intertie would also cross Bureau of Land Management (BLM) land , requiring the project to comply with the National Environmental Policy Act (NEPA). Aviation considerations A "Determination of No Hazard to Air Navigation" would be sought from the Federal Aviation Administration (FAA) if the intertie is routed near an airport. AEA 15003 Page 17 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form Visual aesthetics impacts I~ ENERGY AUTHORITY The project would involve construction of utility poles ranging from 65 feet to 80 feet tall. These poles would be constructed largely between, rather than within, the villages. It is likely that there would be little concern for visual or aesthetic impacts, as communities often note that utility poles offer a helpful visual guide point when traveling outside a village. The project team would conduct community meetings to discuss visual impacts and how they could be minimized in the unlikely event that aesthetic issues arise. Identify and discuss other potential barriers Because the intertie would cross Bureau of Land Management (BLM) land, the project would have to comply with the National Environmental Policy Act (NEPA). NEPA requires all federal actions, including the BLM issuing right-of-way across their land, to develop and disclose the project's purpose and need, alternatives (including a no-action alternative), and environmental impacts (natural, social, and economic). Typically, environmental disclosure documents (such as Categorical Exclusions, Environmental Assessments, or Environmental Impact Statements) are prepared by the federal agency but require input from the project proponent, in this case the North Slope Borough. 5.4 Existing and Proposed Energy System Criteria: Stage 2-3.0: 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. ATQASUK Atqasuk's existing distribution system is a three-phase overhead system configured with two feeders from the power plant. Power is generated at 480 volts and steeped up to 4,160 I 2,400 volts with a 1,000 kVA station transformer connecting each overhead feeder. The power plant consists of two structures housing five generators with a total power capacity of 3,370 kW. The original power plant building includes two 3508 Caterpillar diesel generator sets rated at 450 kW each and one 3512 Caterpillar diesel generator set rated at 650 kW. Adjacent to the power plant building is a prefab metal building that houses two 3512 Caterpillar diesel generator sets rated at 9510 each . Diesel fuel for Atqasuk is barged in once per year, and is delivered first to the Barrow tank farm . In FY2013, it was landed in Barrow at $4.38 per gallon. From Barrow, the fuel is flown into Atqasuk or delivered by all-terrain vehicles. In FY2013 fuel freighted to Atqasuk cost $2.18 per gallon. Once in Atqasuk, the fuel is delivered to either the NSB tank farm with a capacity of 500,000 gallons or the power plant tank farm with a capacity of 88,385 gallons. The power plant tank farm is replenished from NSB tank farm by truck when needed. BARROW Barrow's electrical power is provided by Barrow Utilities and Electric Cooperative, Inc. (BUECI). BUECI purchases wholesale natural gas from the NSB Gas Fields at $1 .00 per MCF (million BTU) and retails the electricity produced to residential customers at $0 .11 per kWh. AEA 15003 Page 18 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form ~~ENERGY AIJTl-K)RITY BUECI's Barrow power plant houses seven generators with a total capacity of 20,500 kW. This includes two Solar Taurus gas turbines rated at 5,000 kW each, three solar Centaur gas turbines rated at 2,500 kW each, and two Caterpillar reciprocating gas units rated at 2 ,000 kW each I Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank) i. Number of generators/boilers/other 5 ------------------------------------~ (2 X 450 kW), 650 kW, (2 X 910 kW) ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type Caterpillar reciprocating diesel gensets iv. Age of generators/boilers/other 1994, 1994, 2002, 2002, 2002 respectively v. Efficiency of generators/boilers/other vi. Is there operational heat recovery? (Y/N) If yes estimated annual displaced heating fuel (gallons) 12.9 kWh/gal b) Annual O&M cost (if system is part of the Rail belt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non-labor 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] 3,447 ,700 kWh (FY2013) ii. Fuel usage Diesel [gal] 267,196 Other iii. Peak Load 601 kW iv . Average Load 409 kW v. Minimum Load vi. Efficiency 12 .9 kWh/gal vii. Future trends steady d) Annual heating fuel usage (fill in as applicable) ----~----------------------------------~ i. Diesel [gal or MMBtu] 214,371 gallons ------~--------------------------------~ ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons , dry tons] vi. Other 1 The Rail belt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal light and Power. AEA 15003 Page 19 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form 5.4.2 Future Trends I~ ENERGY Al.JTHOAITY Describe the anticipated energy demand in the community over the life of the project. Atqasuk's energy demand is expected to remain steady with minimal future change. 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. Atqasuk will lose the State 's PCE benefit. However, since the Borough's existing rate is $0 .15/kWh for the first 600 kW and the minimum level to qualify for PCE is approximately $0.14/kWh, the impact from loss of the PCE benefit would be minimal. 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 Description While the natural gas resource is not renewable, the economic benefit of displacing expensive diesel fuel and heating oil with electricity fueled by natural gas is substantial, and qualifies this community intertie project for the AEA Renewable Energy Fund Grant Program. The North Slope Borough sells the gas wholesale to BUECI , the electrical coop in Barrow, at $1 per MCF , equal to $1 per million BTU. Fuel delivered to Atqasuk costs $6.56 per gallon, or $49 per million BTU. Without question, extending electricity to Atqasuk from Barrow is the more efficient and cost- effective option. Atqasuk's peak demand is anticipated to be around 2, 180 kW and includes all power and space heating requirements. The Atqasuk power plant , which will provide backup service , has a generating capacity of 3,370 kW. Like existing lines in Barrow, the transmission line will be designed to withstand the harsh arctic environment. The line will be operated at 69 kV with a capacity of 10MW and a line loss of 3.8%. 115 kV insulators will be used to avoid flashover from salt contamination. Optimum Installed Capacity BUECI has an installed capacity of 20,500 kW. Its operating peak is about 9,000 kW. Anticipated Capacity Factor The anticipated capacity factor is 26.7. This combines the installed capacity at both BUECI and Atqasuk and the average daily usage of both communities. AEA 15003 Page 20 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form Annual Generation Annual generation at Atqasuk is expected to be 11.5 million kWh and 54 .0 million kWh at Barrow. Anticipated Barriers The avian environmental concern near Barrow may require changes to the design or routing. This can only be determined after the permitting process moves forward. Basic integration concept and delivery methods The Atqasuk integration will be accomplished by adding a three-phase circuit and a step-up transformer at the BUECI power plant to energize the transmission line to Atqasuk. In addition, a recloser would be added to sectionalize the line in the event of a line fault. At Atqasuk, a step-down transformer and an automatic recloser would provide for automatic startup of the backup diesel plant in Atqasuk. The distribution system and service panels in Atqasuk will be upgraded to support the increased power that is required to provide electric heating in addition to the present demand for non-heating power. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, 23,870 kW (20,500 kW Barrow and 3,370 kW Atqasuk) Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] 11,518,959 kWh for power and heat 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 . This phase of the project is for design and permitting. As part of this place, should additional metering equipment be necessary to fulfill the reporting requirements, it will be incorporated into the design. Cost estimates for any additional equipment will be available at the end of this phase. AEA 15003 Page 21 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form II SECTION 6-ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility ~~ENERGY AUTHORITY 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:l/www .akenerg yauthority . org/Programs/Re newable-Energy-F und/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 would displace approximately 17 million gallons of diesel fuel over 35 years, saving about $128,935,000 . Anticipated revenue from electricity sales is $1,040,000 annually. These savings could be invested by the NSB Assembly in programs and projects that directly benefit the people of NSB communities, including Atqasuk . 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. The customers will be in the community of Atqasuk, an inland village with a population of 218 people. There are 57 residential and 61 commercial customers . The BUECI rate for residential customers in Barrow is $0.11/kWh. Another option is for the Borough to pay BUECI a monthly contract rate and bill the customers in Atqasuk in turn. BUECI's large customers pay the E-10 rate, which includes a monthly fixed charge of $347 and a unit charge of $0.0846/kWh. According to the feasibility study, the net present value of cost savings from the project over 35 years is over $50,000,000 . The proposed rate of return over this period, based on Total Project Costs listed in Table 3.2 .5 and the assumptions in Section 6.1.1 above, is 22 .66%. I 6.1.3 Public Benefit for Projects with Private Sector Sales AEA 15003 Page 22 of 29 7/8/14 R enewable Energy Fund Round IX Grant Application -Standard Form For projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below . See section 1.6 in the Request for Applications for more information . N/A Renewable energy resource availability (kWh per month) N/A Estimated sales (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) Estimated sales (kWh) Revenue for displacing diesel generation for use by the Alaskan.public ($)_ 6.2 Financing Plan Criteria: Stage 2-4.8: 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? This application is for the design and permitting phase . When this project proceeds, bond funds will be requested from the North Slope Borough Assembly to assist in the final construction of the project. As with all projects, funding through general obligation bonds will be weighed against the other capital improvement project requiring funding in the communities across the North Slope . 6.2.3 Cost Overruns Describe the plan to cover potential cost increases or shortfalls in funding . Cost overruns and funding shortfalls will be addressed by requesting additional funds from the North Slope Borough. Depending on the size and nature of the shortfall and/or cost overrun, these may be addressed, subject to approval, via general revenue funds or through bond funds . 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 North Slope Borough anticipates submitting a proposal to the Authority for funding of the construction and commissioning phase in the next funding round. Additional funds to cover the additional cost of the project will be requested from the North Slope Borough Assembly in the form of General Obligation Bond funds or other appropriate bonding. I 6.3 Other Public Benefit AEA 15003 Page 23 of 29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I~ ENERGY AUTHORITY 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 There are several non-economic benefits associated with this project, including: • Reduced exposure to diesel fuel price volatility • Higher-quality, more reliable power, which is increasingly critical for sensitive electronics • Greatly reduced risk of fuel spills • Reduced risk of carbon monoxide-related health impacts due to conversion from combustion heating appliances to electric resistance heating Improved air quality in the Atqasuk vicinity from reduced diesel exhaust particulate matter AEA 15003 Page 24 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form 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 There are two options. One is to have BUECI operate the entire facility including the power plant and distribution system in Atqasuk under an agreement with the North Slope Borough. BUECI would collect and retain revenues from customers in Atqasuk. The other option is for the Borough to retain jurisdiction over the line and enter into a contract with BUECI to purchase power at a bulk rate at the substation in Barrow. The Borough would continue to operate the transmission line, Atqasuk power plant, and distribution system. The Borough would also collect revenues from the Atqasuk subscribers as it currently does. The O&M of the transmission line would become the responsibility of the NSB Power & Light enterprise and use its budget and personnel to maintain and operate the line. If there is a need for capital investment the Borough would provide funds through its capital improvements program. There should not be any significant operational issues since the Borough and BUECI currently operate power systems in the North Slope. The existing system will be kept as backup. We estimate $20,000 of fuel each year would allow for scheduled operation of the existing power plant. Since the power plant and water plant are connected, one or more of those existing operators can be trained to operate the facility as required. If BUECI operates the system in Atqasuk they can use the existing water plant operators and the planned SCADA system that would be used to remotely monitor and operate the power plant. The Borough is highly interested in monitoring the economics of this project. If it works as planned there are other communities that may benefit from a similar electrical intertie. The Borough is committed to assessing the benefits of this project and reporting it to the AEA, Borough Assembly, and the City of Atqasuk. 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 AEA 15003 Page 25 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form II • Procuring all necessary equipment and materials I~ ENERGY AUTHORITY Currently the NSB is completing the Preliminary Engineering portion of the project. This should be completed by the end of this year. When Round IX is awarded, the NSB and project team will be in place to proceed with this grant upon receipt of a notice to do so from the AEA. The NSB has conducted several studies related to this project since 1981. More recently the NSB completed the NPR-A-funded "Energy Options for the City of Atqasuk", 2008 . The preliminary feasibility and assessment study identified the Transmission Line to Atqasuk as the most promising energy project for Atqasuk. Since , the Borough has completed the Borough -funded power line study from Barrow to the Walakpa Gas Field utilizing the existing VSM p i peline support structures . This concept was used on the western route concept in the "Atqasuk Transmission Line Feasibility Study" completed in 2011. The NSB has also provided in-kind support of personnel to provide energy data , grant and project administration, technical input, project development and oversight , and assistance in right-of-way, mapping , native allotments, and other land issues . 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 community of Atqasuk is well aware of this project , having passed a resolution in its favor as far back as 1981 . On August 28 , 2008 , Leland A. Johnson and Kent Grinage, NSB Project Manager, conducted a town meeting in Atqasuk to present and discuss the findings of the "Energy Options for the City of Atqasuk". The transmission line was identified in the study as the best energy project for Atqasuk. In 2010 the NSB formed a steering committee to develop and monitor the progress and results of the Atqasuk Transmiss ion Line Project Feasibility Study. The Committee consisted of the Vice Mayor of Atqasuk , the Lead Power Plant Operator from Atqasuk, and two NSB Division Managers . The Atqasuk Transmission Line Project Prelim inary Engineering Project is being assisted and monitored by the same two Atqasuk representatives. One of the representatives is now the Mayor of Atqasuk. He keeps the community informed of the project at the monthly City Council meetings . A resolution passed in support of the project was passed in October 2014 in support of the Round VII application. It is attached. A resolution in support of this application will be presented to the assembly in October 2015. 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 Authority previously awarded the North Slope Borough $210 ,000 for the feasibility study phase of this project under Grant Agreement #7040023 . The amended period of performance spanned A EA 15003 Page 26 of 29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form I~ ENERGY AUTHORITY July 1, 2011 to December 31, 2014. All reporting requirements were met and a final report was issued to the Authority on January 29, 2015 . SECTION 11-LIST OF SUPPORnNG DOCUMENTATION FOR PRIOR PHASES In the space t:>elow please provide a list additional documents attached to support completion of prior phases. SECTION 12-LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below please provide a list of additional information submitted for consideration. AEA 15003 Page 27 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form II SECTION 13-AUTHORIZED SIGNERS FORM Community/Grantee Name: North Slope Borough Regular Election is held: Every 3 Years I Authorized Grant Signer(s): Printed Name Title I~ ENERGY AUTHORITY I Date: 1st Tuesday in October Term Signature Jacob Adams, Sr Chief Administrative 2011-2017 ~tfL,f-Officer v Printed Name Charlotte E. Brower Mayor 2014-2017 I Grantee Contact Information: Mailing Address: PO Box 69 Barrow, AK 99723 Phone Number: (907) 852-0467 Fax Number: (907) 852-4145 E-mail Address: Timothy . Rowe@north-slope . org Federal Tax 10 #: 92-0042378 Please submit an updated form whenever there is a change to the above information. AEA 15003 Page 28 of29 7/8/14 Renewable Energy Fund Round IX Grant Application -Standard Form SECTION 14-ADDITIO.NAL 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 RF A 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 Charlotte E. Brower Signature Title Mayor, North Slope Borough AEA 15003 Page 29 of29 7/8/14 Appendix B-2013 & 2014 Resolutions NORTH SLOPE BOROUGH RESOLUTION SERIAL NO. 54-2014 A RESOLUTION AUTHORIZING THE NORTH SLOPE BOROUGH TO PARTICIPATE IN THE RENEWABLE ENERGY GRANT PROGRAM FOR FY2015 WHEREAS, the State of Alaska has established the Renewable Energy Grant Recommendation Program in Alaska Statute AS 42.45.045; and WHEREAS, the Alaska Energy Authority (AEA) is soliciting competitive applications from qualified applicants for the purpose of recommending grants for renewable energy projects to be funded by the Alaska State Legislature for FY 15; and WHEREAS, the North Slope Borough is a home rule municipal corporation duly organized and existing under the Constitution and laws of the State of Alaska, and is therefore a local government and "eligible applicant" as defmed by AS 42.45.045(1)(1); and WHEREAS, the North Slope Borough (Borough) is in compliance with all federal, state, and local laws including existing credit and federal tax obligations; and WHEREAS, the Mayor or her designee is authorized as the point of contact to represent the Borough for the purpose of this application; and WHEREAS, the North Slope Borough desires to apply for funds to provide for and administer the following projects under this program: PROJECT TITLE GRANT PROPOSED TOTAL AMOUNT BOROUGH REQUESTED MATCH Kaktovik Wind Generation Final Design and $440,000 $44,000 $484,000 Permitting Atqasuk Transmission Line Final Design and $2,017,818 $201,782 $2,219,600 Permitting TOTAL $2,457,818 $245,782 $2,703,600 and Resolution S4·2014 Page 2 of2 WHEREA , pur uant t A 42.45.045(d)(l), the A A has been directed to evaluate the benefit and feasibility of the projects, and prioritize projects that may receive as istance, with .. significant weight' being given to the amount of matching fund an applicant is able to pr vide, and therefore th Bor ugh proposes to pr vide funding at the match amounts indicated in the application. NOW, THEREFORE, BE IT RE OL VED THAT: The North Slope Borough Assembly authorizes the Mayor to submit an application for the grant projects listed above, to negotiate and execute any and all docwn nts required for approval and management of grant funds and to execute any subsequent amendments to the abrreements to provide for the adjustment to the prqjects within the scope of services or task , and based upon the need of the projects. INTR D C D: October 14, 2014 ADOPTED: October 14 2014 ' ATI'EST: 0Wc,?;o b .~ harlol:2E. Browc1· Mayor Date: ~~ 11-, C)o ljL NORTH SLOPE BOROUGH RESOLUTION SERIAL NO. 41-2013 A RESOLUfiON AUTHORIZING THE NORTH SLOPE BOROUGH TO PARTICIPATE IN THE RENEWABLE ENERGY GRANT PROGRAM FOR F¥2014 WHEREAS, through Alaska Statute AS 42.45.045, the State of Alaska has established the Renewable Energy Grant Recommendation Program; and WHEREAS, the Alaska Energy Authority (AEA) is soliciting competitive applications from qualified applicants for the purpose of recommending grants for renewable energy projects to be funded by the Alaska State Legislature for FY14; and WHEREAS, the North Slope Borough is a home rule municipal corpomtion duly organized and existing under the Constitution and laws of the State of Alaska, and is therefore a local government and "eligible applicant" as defmed by AS 42.45.045(1)(1 ); and WHEREAS, the North Slope Borough (Borough) is in compliance with all federal, state, and local laws including existing credit and federal tax obligations; and WHEREAS, the Mayor or her designee is authorized as the point of contact to represent the Borough for the purpose of this application; and WHEREAS, the North Slope Borough desires to apply for funds to provide for and administer the following projects under this program: PROJECT TITLE GRANT PROPOSED TOTAL AMOUNT BOROUGH REQUESTED MATCH Kaktovik Wind Generation Final Design and $440,000 $44,000 $484,000 Permitting Atqasuk Transmission Line Final Design and $2,017,818 $201,782 $2,219,600 Permitting TOTAL $2,457,818 $245,782 $2,703,600 and Resolution 41-2013 t>eec2of2 WHEREAS, pwsuant to AS 42.45.045(dJ(I). the AEA bas been directed to evaluate lhc benefit and feasibility of the projects, and prioritize projects that may reeeive a.~. with "significant weight" being given to the amo\U\t of matching fimds an applicant is able to provide, and ~fore the Borough proposes to provide funding at the match amounts indicated in the application; NOW, mEREFORE. BE IT RESOLVED mAT: The North Slope Borough Assembly authorizes the Mayor to submit an application for the grant projects Listed above, to negotiate and execute any and all documents required for approval and management of grant funds, and to execute any subsequent amendments to the agroements to provide for the adjustments to the projects within the scope of services or tasks, and based upon the needs of the projects. INTRODUCED: October 8. 2013 ADOPTED: October 8, 2013 ATIEST: ~"'&Y ]) ~