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HomeMy WebLinkAboutTDX Power Ref 9 Sand Point High Penetration Wind System Grant ApplicatioSeptember 15, 2015 Grants Administrator Shawn Calfa Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, AK 99503 REF: AEA REF 9 - Sand Point Generating High Penetration Wind Project Dear Mr. Calfa: Sand Point Generating, LLC, a subsidiary of TDX Holding, LLC is pleased to submit the attached application for the Renewable Energy Grant Fund. The purpose of this project is to integrate a wind only power system for the Sand Point Community. Under this grant proposal, we are seeking support to improve fuel savings and utilize increased wind power. The Sand Point High Penetration Wind project will be essential in the reduction to fossil fuel costs and promoting a wind only power system. As such, we are seeking Renewable Energy Grant Funds in the amount of $649,030. Sand Point Generating will match with 40% or $423,275 in cash and in-kind contributions, for a total project cost of $1,072,305. As president of TDX Power, Inc., I am authorized by the TDX Board of Directors to sign this application; commit the company to provide the matching resources for the project at the match rates states in the application; and commit the company to the obligations under the grant. In addition, I certify that TDX Power, Inc. is in compliance with applicable federal, state, and local laws, including existing credit and federal tax obligations. Further, I am the point of contact to represent TDX for purposes of this application. If there are questions or additional information is required, my number is (907) 762-8450. If I am unable to be reached, please feel free to contact John Lyons at jlyons@tdxpower.com or (907) 762-8478. This is an exciting project for the residents of St. Paul. The prospects of further implementation of renewable energy and the resulting independence and cost savings are significant to the people who live and work there. We thank you for your favorable consideration of this application. Sincerely, Kord Christianson, President TDX Power, Inc. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 1 of 32 7/8/14 Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round VIII of the Renewable Energy Fund. A separate application form is available for projects with a primary purpose of producing heat (see RFA section 1.5). This is the standard form for all other projects, including projects that will produce heat and electricity. An electronic version of the Request for Applications (RFA) and both application forms is available online at: http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org. If you are applying for grants for more than one project, provide separate application forms for each project. Multiple phases (e.g. final design, construction) for the same project may be submitted as one application. If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for each phase of the project. In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 ACC 107.605(1). If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are completed and funding for an advanced phase is warranted. Supporting documentation may include, but is not limited to, reports, conceptual or final designs, models, photos, maps, proof of site control, utility agreements, power sale agreements, relevant data sets, and other materials. Please provide a list of supporting documents in Section 11 of this application and attach the documents to your application. If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. Please provide a list of additional information; including any web links, in section 12 of this application and attach the documents to your application. For guidance on application best practices please refer to the resource specific Best Practices Checklists; links to the checklists can be found in the appendices list at the end of the accompanying REF Round IX RFA. In the sections below, please enter responses in the spaces provided. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed. REMINDER: 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. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 2 of 32 7/8/14  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. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 3 of 32 7/8/14 SECTION 1 – APPLICANT INFORMATION Please specify the legal grantee that will own, operate, and maintain the project upon completion. Name (Name of utility, IPP, local government, or other government entity) Sand Point Generating, LLC Type of Entity: Electric Utility RCA Certificate Fiscal Year End: of Public Convenience and necessity No. 230 September 30 Tax ID # 26-3434790 Tax Status: ☒ For-profit ☐ Non-profit ☐ Government (check one) Date of last financial statement audit: May 2015 Mailing Address: Physical Address: 615 E 82nd Ave 615 E 82nd Ave Suite 200 Suite 200 Anchorage , AK 99518 Anchorage , AK 99518 Telephone: Fax: Email: 907-762-8450 jlyons@tdxpower.com 1.1 Applicant Point of Contact / Grants Manager Name: Jan Tierson Title: General Manager, Sand Point Generating, LLC Mailing Address: 615 E 82nd Ave Suite 200 Anchorage, AK 99518 Telephone: Fax: Email: 907-350-7532 jtierson@tdxpower.com 1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION Name: Kord Christianson Title: President, TDX Power, Inc. Mailing Address: 615 E 82nd Ave Suite 200 Anchorage, AK 99518 Telephone: Fax: Email: 907-762-8450 kord@tdxpower.com 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: Travis Hammond 907-762-8439 thammond@tdxpower.com 1.2 Applicant Minimum Requirements Please check as appropriate. If applicants do not meet the minimum requirements, the application will be rejected. 1.2.1 Applicant Type Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 4 of 32 7/8/14 ☒ 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) Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 5 of 32 7/8/14 SECTION 2 – PROJECT SUMMARY 2.1 Project Title Provide a 4 to 7 word title for your project. Type in the space below. Sand Point High Penetration Wind System 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. 55.340103, - 160.489627 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Sand Point, Alaska 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 Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 6 of 32 7/8/14 2.4 Project Description Provide a brief one paragraph description of the proposed project. Sand Point Generating LLC (SPG) proposes a high penetration wind diesel operation for the City of Sand Point. This system will utilize a high speed low load generator. This unit has good part load efficiency, and can run at 10% of its 600KW rating continuously. The power converter, which is integral to the Innovus IP MVS 600 variable speed generator proposed, can operate even when its diesel engine is turned off. Ultra-capacitors on the DC Bus provide short term electrical storage to facilitate load pick up and diesel starting sequence. The IP MVS 600 power converter and ultra- capacitor energy storage can and will be used to maintain the frequency and voltage of the wind turbines, allowing (during steady wind) the Utility to power City loads with only wind power (diesels off). 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. 1.Perform minor equipment relocations within existing Sand Point power plant to prepare space for a new genset. 2.Purchase and Install Innovus IP MVS 600 variable speed genset. The genset package includes an MTU 12V 1600 series Tier IV diesel engine, permanent magnet generator, bi- directional grid forming power converter, and ultra-capacitor energy storage modules. 3.Perform control modifications: a.Revise existing wind/diesel system resistive load control. Present control is used to keep gensets at minimum load level. Revised control will be used to manage capacitor state of charge. b.Revise existing wind/diesel system genset dispatch control to include a new genset c.Implement control to stop and start the MVS 600 engine based on wind resource and load information. d.Revise operator interface screens and data collection files. 4.Implement a savings model to quantify energy savings as compared with conventional generation, and operate system. SECTION 3 – Project Management, Development, and Operation 3.1 Schedule and Milestones Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail. Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding request. Be sure to identify key tasks and decision points in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Add additional rows as needed. Milestones Tasks Start Date End Date Deliverables Project Initiation Initial assessment and scope definition Sep 16 Signed Contract with AEA Final Design Approval Final Design Mar 17 Final Design Report Operational Plan Define operational plane Mar 17 Operational Plan Final Cost Review Estimate and review final cost Mar 17 Final Cost Estimate Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 7 of 32 7/8/14 Phase II: Construction Major Components Ordered Procurement Apr 17 Sept 17 Innovus Bid Package Commissioning Installation and Commissioning Apr 17 Nov17 Commissioning Sign-Off Operational Trial Period Dec 17 June18 Operational Report 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. Total project budget is $1,072,305. TDX is asking for AEA grant for $649,030. The remainder of the funds will be provided by Sand Point Generating. It is anticipated that an equivalent genset cost of $175,000 will be requested to be included in SPG’s rate based equipment. 3.2.2 Budget Forms Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail your proposed project’s total budget. Be sure to use one table for each phase of your project. The milestones and tasks should match those listed in 3.1 above. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA at 907-771-3031 or by emailing the Grants Administrator, Shawn Calfa, at scalfa@aidea.org. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 8 of 32 7/8/14 Milestone or Task RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See sections 2.3 thru 2.6 of the RFA ) $$$ Final Design & Permitting $ 64,505 $ 64,505 TOTALS $ 64,505 $ $ 64,505 Budget Categories: Direct Labor & Benefits $ 44,505 $44,505 Travel & Per Diem $ 20,000 $20,000 Equipment Materials & Supplies Contractual Services Construction Services Other TOTALS $ 64,505 $ 64,505 Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 9 of 32 7/8/14 Milestone or Task RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See sections 2.3 thru 2.6 of the RFA ) $$$ Procurement and Construction $ 564,725 $ 423,275 In Kind $ 988,455 Operation Monitoring $ 19,800 $ 19,800 TOTALS $ 584,525 $ 423,275 $ 1,007,800 Budget Categories: Direct Labor & Benefits $ 161,525 $ 161,525 Travel & Per Diem $ 45,000 $ 45,000 Equipment $ 325,000 $ 423,275 $ 748,275 Materials & Supplies $ 53,000 $ 53,000 Contractual Services Construction Services Other TOTALS $ 584,525 $ 423,275 $ 1,007,800 Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 10 of 32 7/8/14 Milestone or Task RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See sections 2.3 thru 2.6 of the RFA ) $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ TOTALS $$$ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $$ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $$ TOTALS $$$ Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 11 of 32 7/8/14 Milestone or Task RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See sections 2.3 thru 2.6 of the RFA ) $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ TOTALS $$$ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $$ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $$ TOTALS $$$ Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 12 of 32 7/8/14 3.2.3 Cost Justification Indicate the source(s) of the cost estimates used for the project budget. Internal TDX cost accounting for AEA approved labor rates. Budgetary quotation from Innovus for genset package. 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 $649,030 Cash match to be provided In-kind match to be provided $423,275 Total costs for project phase(s) covered in application (sum of above) $1,072.305 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 $ Feasibility and Conceptual Design $ Final Design and Permitting $ 64,050 Construction $1,008,255 Total Project Costs (sum of above) $1,072,305 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. $ 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. $110,000 2. 3,680 Hours (diesel OFF/year) 3. $ 50,000 Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 13 of 32 7/8/14 3.3 Project Communications Criteria: Stage 2-1.C: The applicant’s communications plan, including monitoring and reporting, is described in adequate detail. Describe how you plan to monitor the project and keep the Authority informed of the status. TDX Sand Point Generating project manager will closely monitor project performance. Technical and budgetary progress will be reported to AEA monthly throughout the project, or as directed by 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. TDX Sand Point Generating will assume ownership of all assets associated with this project. All matching funds will be included in the utility’s rate structure, in accordance with AEA and RCA requirements. TDX has full‐time onsite operators, supported by in‐house engineering and maintenance personnel who travel to the site as needed. Operations and maintenance costs will be included in the tariff filing that will be reviewed by the regulatory authorities. SECTION 4 – QUALIFICATIONS AND EXPERIENCE 4.1 Project Team Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and experience to successfully complete and operate the project. If the applicant has not yet chosen a contractor to complete the work, qualifications and experience points will be based on the applicant’s capacity to successfully select contractors and manage complex contracts. Criteria: Stage 2-2.B: The project team has staffing, time, and other resources to successfully complete and operate the project. Criteria: Stage 2-2.C: The project team is able to understand and address technical, economic, and environmental barriers to successful project completion and operation. Criteria: Stage 2-2.D: The project team has positive past grant experience. 4.1.1 Project Manager Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 14 of 32 7/8/14 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. Jan Tierson, TDX Senior Applications Engineer, will serve as the Project Manager for this project. Jan’s prior experience includes system commissioning on an early NREL 250KW demonstration wind only capable wind/diesel/battery/rotary converter project. Jan was also the project engineer on a 1.8MW custom AC‐DC‐AC power converter designed and commissioned for Con Edison for use in connecting emergency generation without adding fault current. Jan also was the utility scale electrical team leader at Northern Power Systems, responsible for electrical design, fabrication and installation of their 2.3MW, class IV (full power converter coupled) wind turbine prototypes. 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 Travis Hammond, BS Electrical Engineering, BS Geology, BS Mathematics Mr. Hammond has 4 years’ experience managing and developing prime and back-up power systems in the extreme conditions in Alaska. He has considerable knowledge for emergency and backup power, both AC and DC systems. His ability to write, review and execute proposals, design packages and projects have made him a valuable resource. Mr. Hammond also has 8 years specialized experience in protective relay design and interface of AC/DC systems used in utility transmission and distribution systems. He has performed and led product testing, working with technicians to troubleshoot problems. He has designed analog and digital circuits for new products, schedules for software, manufacturing, and hardware teams; and prepares operational and functional test documents. Mr. Hammond’s hands-on experience will be beneficial in engineering design, construction and implementation for remote systems worldwide. Steve Hoskins, Electrical and Controls Engineer Steve has more than 15 years of experience with system R&D, testing, tuning, and commissioning activities. He has created simulations of nonlinear electromechanical energy conversion systems, including wind turbines, PV arrays, AC machines (induction, synchronous, and PM-type generators) and power electronic converters. Steve interfaces closely with structural, mechanical, and software engineers and possesses vast experience working on multi-discipline teams and collaborating with clients. He is proficient with many design software applications including Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 15 of 32 7/8/14 MATLAB/Simulink, SKM Power Tools, AutoCAD, HOMER, , GE Proficy, Woodward Toolkit, and others. •Commissioned two 100kW PM direct-drive pre-production wind turbines in the field: one for the National Renewable Energy Laboratory, in Boulder, CO; and one for the Alaska Village Electric Cooperative’s wind farm, in Kotzebue, AK. •Led engineering design teams during several prototype product development programs: •100kW power converter redesign for the NW100 wind turbine •900kVA power converter for various commercial market applications •2.5kW wind turbine controller for small (residential scale) wind turbine •Commissioned wind-diesel system equipment and controls for two 500kW wind turbines and multiple CAT gensets for Sand Point, AK, and for three 225kW wind turbines and custom- designed genset controls and switchgear for St Paul, AK. Performed a comprehensive power system analysis establishing PV penetration limits as well as inverter and genset operational considerations to ensure continuity of service with the installation of 2.5 MW of PV onto a standalone diesel grid at the La Encantada silver mine in Mexico. •Provided system integration design services for two remote island power system applications involving PV array, battery bank, and multiple gensets with automatic sync controls Daniel Lenel, Mechanical Engineer Daniel Lenel, Mechanical Engineer, TDX Power Engineering. Daniel has more than 23 years of experience in power generation, project engineering, product design, and management. His expertise includes small power utility systems, harsh environment connectors, and connectivity solutions. Daniel balances innovative design and engineering solutions with his multinational expertise. •Successfully designed and commissioned CHP systems including largest CHP plant in Geneva, Switzerland. •Managed engineering team in China and USA for developing interconnection components for photovoltaic panels. 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. Laura Bain, Controller Cindy L. Byfield, Project Costs and Controls Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 16 of 32 7/8/14 Project management, engineering, procurement, accounting, and all administrative functions will be performed in-house by TDX employees. TDX has successfully studied, designed and constructed integrated power systems throughout the state of Alaska. 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. TDX Sand Point Generating has stringent accounting policies and procedures in place which are according to GAAP. All charges are reviewed for accuracy and for appropriate coding for the grant. Each cost must pass an approval process to insure that it is allowed by the terms of the grant. Additional review occurs when the grant reports are completed. 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. TDX intends to use its own workforce for the project, whenever possible. This consists of Sand Point resident operations staff, supported with off island employees. Local resources will be required for material handling and transport. Contracted skilled trade work will give preference to local resources, although the skilled trade availability on island is limited. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 17 of 32 7/8/14 SECTION 5 – TECHNICAL FEASIBILITY 5.1 Resource Availability Criteria: Stage 2-3.A: The renewable energy resource is available on a sustainable basis, and project permits and other authorizations can reasonably be obtained. 5.1.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available, including average resource availability on an annual basis. Describe the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application. Innovus, guided by TDX, modeled projected fuel savings using actual load and nacelle wind speed data for the last 2 years of operation. Each of the 3 cases is based on a system model, assuming 100% availability of generating assets. This is done to normalize the comparison between cases. Actual fuel saved will be less, assuming some degree of turbine and genset downtime. Case 1 reflects a significant improvement by using the variable speed generator to displace the use of existing CAT 3512 series genset. Fuel is saved from better engine efficiency, less transitions between gensets, and due to the lower minimum load on the VSG, allowing higher wind utilization Case 2 reflects diesels off operation. This option includes sufficient ultra-capacitor storage within the VSG power converter to allow the unit to provide full output for long enough time to start VSG diesel engine. For evaluation of system economics and finance, TDX is using 80% of the predicted fuel saving in the chart below. Case Scenario Gen  A  Gen B Fuel  Used  (gal)  Fuel  Saved  (gal)  Usable  Wind  Energy  (kWh)  Wind  Penetration  (%)  0 Existing system  (base case)  Cat  3456  Cat  3512  207,564 0 1,182,030 29.4%  1 Replace 3512  with VSG  Cat  3456  VSG 163,154 44,411 1,715,331 43.0%  2 Replace 3512  with VSG,  engine off  Cat  3456  VSG 103,833 103,732 2,446,327 61.3%  For a pros and cons comparison, we will assume we are comparing “Diesels Off using VSG” as compared to a “Diesels OFF using Inverter and Batteries” solution. “Diesels Off using VSG” - Pros: Less storage cost - The Innovus IP MVS 600 is intended to support fast engine starting, instant synchronizing, and frequent stop start cycles. This allows a minimum energy storage requirement to bridge from diesel off to diesel on during a wind lull. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 18 of 32 7/8/14 Less equipment cost - There is extraordinary economy in purchasing the Innovus IP MVS 600, as compared to buying a separate 1MVA power converter and separate MTU 12V 1600 series Tier IV diesel engine genset. Greater Savings – A diesels off solution using an inverter and battery would not include an engine-generator set. The Innovus IP MVS 600 has a wide output range, from 60 to 590KW. This means less transitions between large and small gensets, and less dumped power to maintain minimum engine load. Also, the IP MVS 600 has excellent fuel efficiency, especially when compared to competing Tier IV emissions compliant machines. More Reserve Generation - An additional diesel genset is extremely valuable for equipment contingency situations 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 Air Quality Permit: Innovus genset is a Tier 4 I&C Standard. But for Utility applications it may need to be fitted with appropriate exhaust modifications. 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. TDX owns and operates the power plant where equipment is to be installed. There is sufficient space in the existing powerhouse. No siting concerns 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. There are no foreseen technical risks, related to the integration of the Innovus genset/inverter that will prevent achieving diesels off operation, fuel savings, and increased wind utilization. The two year operational history of the wind turbines has provided significant confidence on the performance and long term operations of the wind turbines and the load balancing equipment. There are however equipment reliability risks. Although the IP MVS 600 utilizes a proven engine and proven major components, this is a new product with a limited operation record. Downtime could considerably reduce savings and power system reliability, especially in the early teething phase. The risks are mitigated contractually by structuring the purchase contract with a comprehensive performance guarantee. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 19 of 32 7/8/14 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 No barriers exist since the project will be built inside the existing powerhouse. 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. The existing Sand Point power system architecture includes a single 480V bus with the following components: (1) CAT 3456 generator set, 455kw, installed 2011 (2) CAT 3512 generator set, 650kw, installed 1986, 1994 (1) CAT 3516 generator set, 900kw, installed 2000 (2) Vestas V‐39 wind turbines, 500kw each, installed 2011 (1) 395kw dispatchable resistance load bank with SSR control, installed 2011 (1) 126kw dispatchable resistance boiler, installed 2011 (1) PLC ‘master controller’, including dispatchable load control, installed 2011 Under REF Round 8 TDX will be installing additional dispatchable heating loads or community buildings to take advantage of the excess wind energy along with appropriate controls, communications and monitoring equipment. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 20 of 32 7/8/14 Existing Energy Generation and Usage a)Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i.Number of generators/boilers/other (4) diesel generator sets, (2) wind turbines ii.Rated capacity of generators/boilers/other Gensets(kw): 455,650,650,900. Wind Turbines: 500kw iii.Generator/boilers/other type Diesel/Wind iv.Age of generators/boilers/other Gensets: 7-29 years. Wind turbines: 2011 (refurbished) v.Efficiency of generators/boilers/other 13.78 kwh/gallon (average) vi. Is there operational heat recovery? (Y/N) If yes estimated annual displaced heating fuel (gallons) b)Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i.Annual O&M cost for labor 230,000 (FY12) ii.Annual O&M cost for non-labor 107,786 (FY12) 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]4,209,139 (2012) ii.Fuel usage Diesel [gal] 274,795 (2012) Other iii. Peak Load 792 kw (Jan 2012) iv. Average Load 490 kw (2012) v. Minimum Load 287 kw (June 2012) vi. Efficiency 13.78 kwh/gallon vii. Future trends d)Annual heating fuel usage (fill in as applicable) i.Diesel [gal or MMBtu] ii.Electricity [kWh] iii.Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v.Wood [cords, green tons, dry tons] vi. Other 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric  Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.  Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 21 of 32 7/8/14 5.4.2 Future Trends Describe the anticipated energy demand in the community over the life of the project. TDX goal is to make Sand Point 80% renewable by 2025 TDX would be interested to take on additional fish processing energy demand if opportunity presents itself. 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. A community that is energy self-sufficient is able to supply its own needs with minimal external assistance is ultimately a more sustainable community. Our goal for Sand Point is utilizing 70% renewable energy for electricity, heating and transportation by 2022. To achieve this goal Sand Point must capture as much wind power as possible, and utilize high-penetration renewable integration controls that provide both heat and power, increasing wind-only, diesel-off generation time. Incorporating fast acting dispatch able loads, a highly efficient variable speed diesel, microgrid controls and small amounts of storage, will allow Sand Point to increase its wind power resource utilization and provide effective regulation of the electric grid. Realizing this goal will create design, construction, management, operations jobs, with significant ancillary benefits for the community. Renewable energy impact on PCE. The lack of economies of scale leads to very costly electricity per unit of production by diesel. Fixed costs operating a rural electric utility are large and spread over a small consumer base. The PCE program is effective at bringing the first 500kWh’s of Sand Points residential rates more in line to urban areas of Alaska. However, space heating is often the largest household energy expense for many in Sand Point. Taking advantage of renewable energy capacity to increase economies of scale and produce excess electricity for space heating to displace fuel oil usage certainly makes economic sense. The benefits from harnessing excess renewable energy for space heating makes the most economic sense in some applications. The majority of the energy consumed in most rural locations is used for heating as opposed to electric as the pie charts illustrates. Depending on wind-diesel system configuration and rate structure, the benefits resulting from high penetration wind and using the excess wind to generate thermal electric or btu’s have a net effect reducing overall energy costs in Sand Point. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 22 of 32 7/8/14 Sand Point electric utility “commercial” customers don’t receive a PCE benefit but do benefit from a lower fuel consumption by wind generated electrons. As wind is not a firm source of power there are times power production exceeds the available electric load. In those circumstances, the ability to use and storing the “excess” wind as thermal battery by electric boilers, ceramic thermal stoves, or other electric heating devices avoids having to waste by dumping the energy or curtail the renewable energy production already paid for. The benefits from harnessing excess energy are received primarily by commercial electric customers and electric customers not receiving the benefit of PCE. Community facilities such as health clinics, schools and community centers would receive the benefit from excess wind generated electrons if electric thermal nodes such as electric boilers were installed. TDX Sand Point Generating qualifies for the PCE program. Approximately 40% of the sales in 2012 were PCE eligible. Approximately 60% of the cost (fuel) savings achieved through this project will benefit the local community through reduced electricity bills. 40% of the savings will benefit residents statewide through reduced PCE expenditures. 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 TDX Sand Point Generating presently serves an average peak community load of about 600KW and has 1000KW of installed wind capacity. The original wind project was not funded to include Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 23 of 32 7/8/14 controls and equipment to allow diesels off operation. At present, a diesel engine must always be online and producing at least 30% of its output rating, even if there is more wind power available than is required by City loads. Also, one of the 3 primary gensets at Sand Point is long overdue for a major overhaul. The engine must be overhauled or replaced with a new engine to maintain basic minimum reserve generation capacity. The cost to overhaul the old, inefficient diesel engine is about on par with replacement engine. Innovus Power has developed a diesel genset that uses less fuel and can run at lower loads than conventional gensets. This is accomplished by running the engine at lower speed under light load conditions. This genset includes an inverter such that engine speed can vary while electric output frequency is held constant. (Conceptually this is equivalent to the technology used in the popular compact, ultra-quiet, portable generators offered by Honda and others) The Innovus IP MVS 600 variable speed genset package proposed consists of an essentially stock MTU 12V 1600 series Tier IV diesel engine genset, mated to a permanent magnet generator, four quadrant inverter and ultra-cap bank. The MVS 600 power converter consists of a rectifier section to convert the variable frequency and voltage from the PM generator to feed the power converter DC bus. The converter’s inverter section converts DC to a 60Hz AC output. Innovus connects a small amount of energy storage, in the form of ultra-capacitors, to the power converter DC bus. This dramatically improves the units step load performance, as well as providing fast response to cover load variations. The IP MVS 600 variable speed genset is applied no differently than any traditional engine- generator set. The unit can operate standalone as the grid voltage and frequency source. It also can be paralleled with other gensets, responding to typical kW and VAR sharing control inputs. This proposed project installs the IP MVS 600 into the power plant genset lineup, typical to the operation of the existing gensets. Typical to other conventional gensets, however the IP MVS 600 has a higher power rating than the existing 3456 (presently the most efficient unit). This provides for prolonged operation of the MVS 600 under higher load demand periods, as opposed to the 455KW 3456, which often needs to transition to a larger 3512 series engine. The IP MVS 600 also can operate at a lower minimum load, 60 kW. Beyond that, however, IP MVS 600 package proposed provides for diesels off operation with its inverter and ultra-cap bank. Its standard, fully bi-directional power converter operates even when its diesel engine is turned off. The ultra-capacitors connected to the power converter DC bus allow the power converter to deliver and receive real power. This feature will maintain the frequency and voltage of the grid with just the wind turbines connected, allowing the Utility to power City loads with wind power only (diesels off). This capability is only allowed during periods when winds are steady and strong, sufficient to maintain all the City loads. Controller setting will define the diesel off regimes with appropriate reserve capacity.   The Innovus IP MVS 600 is capable of fast engine starting, instant synchronizing, and frequent stop start cycles. This allows a minimum energy storage requirement to bridge from diesel off to Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 24 of 32 7/8/14 diesel on during a wind variations. This offers a very significant cost savings as opposed to using a grid forming inverter and battery to achieve the same purpose: diesels off operation. The existing wind diesel control system will be programmed to signal the IP MVS 600 to turn off its engine when winds are sufficient to cover the utility load with an appropriate margin. Secondary thermal loads will be modulated to achieve a pre-determined capacitor state of charge. The diesel engine will automatically start to cover Utility load when secondary load is fully off and with the capacitor state of charge is depleted to a predetermined level, providing the energy storage for the transitional period. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a)Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] 1MW b)Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh]None ii. Heat [MMBtu] None c)Proposed annual fuel usage (fill in as applicable) i.Propane [gal or MMBtu]None ii.Coal [tons or MMBtu]None iii.Wood or pellets [cords, green tons, dry tons] None iv. Other d) i. Estimate number of hours renewable will allow powerhouse to turn diesel engines off (fill in as applicable) 3,680 hrs/year 5.4.5 Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment that will be used to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. Existing metering and digital data acquisition/monitoring in the powerhouse will provide sufficient information for performance modeling. In addition the Innovus genset will have a set of metering and monitoring points that will be tracked separately. Fuel gauges for the engines are being added to the powerhouse as part of this project. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 25 of 32 7/8/14 SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility Criteria: Stage 2-4.A: The project is shown to be economically feasible (net positive savings in fuel, operation and maintenance, and capital costs over the life of the proposed project). 6.1.1 Economic Benefit Explain the economic benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: Anticipated annual and lifetime fuel displacement (gallons and dollars) Anticipated annual and lifetime revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) Additional incentives (i.e. tax credits) Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) The economic model used by AEA is available at http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. This economic model may be used by applicants but is not required. The final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. If used, please submit the model with the application. The Sand Point Energy Storage Project is expected to displace over 400,000 gallons of diesel fuel over its 5 year life. Savings are based on conservative projections including a factor for availability (80%). Anticipated annual saving in fuel consumption is approximately $320,000/year. From the State of Alaska point of view, assuming flat fuel prices at $4/gallon and a 3% discount rate, the net present value of these fuel savings are $1.45 million. The total project cost is projected to be $1.072 million with TDX picking up a significant cost share. Annual revenue will be determined by RCA rate approval process, in coordination with AEA. The rate will be based on actual costs, not avoided costs. Alaska residents, Sand Point residents and Sand Point businesses are the primary direct beneficiaries of this project. Reducing fuel use helps rural communities maintain economic activity and attract residents Applicability of federal incentives will be evaluated during the project. We do not anticipate qualifying for federal tax credits. We are aware of no other federal, state, or local incentive programs that may help support this project. 6.1.2 Power Purchase/Sale Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 26 of 32 7/8/14 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 sale of Aleutian Wind Energy and Sand Point Generating will increase as a net benefit from increased wind production. All Sand Point Generating customers connected to the grid will benefit from increased wind production. This project happens inside the utility operational structure and results in lower fuel consumption and lower O&M expenses. Aleutian Wind Energy is the wholesale wind company (rate regulated electric utility) cost per kWh to Sand Point Generating .164 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. A community that is energy self-sufficient is able to supply its own needs with minimal external assistance is ultimately a more sustainable community. Our goal for Sand Point is utilizing 70% renewable energy for electricity, heating and transportation by 2022. To achieve this goal Sand Point must capture as much wind power as possible, and utilize high-penetration renewable integration controls that provide both heat and power, increasing wind-only, diesel-off generation time. Incorporating fast acting dispatchable loads, a highly efficient variable speed diesel, microgrid controls and small amounts of storage, will allow Sand Point to increase its wind power resource utilization and provide effective regulation of the electric grid. Realizing this goal will create design, construction, management, operations jobs, with significant ancillary benefits for the community. Renewable energy impact on PCE. The lack of economies of scale leads to very costly electricity per unit of production by diesel. Fixed costs operating a rural electric utility are large and spread over a small consumer base. The PCE program is effective at bringing the first 500kWh’s of Sand Points’ residential rates more in line to urban areas of Alaska. However, space heating is often the largest household energy expense for many in Sand Point. Taking advantage of renewable energy capacity to increase economies of scale and produce excess electricity for space heating to displace fuel oil usage certainly makes economic sense. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 27 of 32 7/8/14 Sand Point electric utility “commercial” customers don’t receive a PCE benefit but do benefit from a lower fuel consumption by wind generated electrons. As wind is not a firm source of power there are times power production exceeds the available electric load. In those circumstances, the ability to use and storing the “excess” wind as thermal battery by electric boilers, ceramic thermal stoves, or other electric heating devices avoids dumping the energy or curtail the renewable energy production already paid for. The benefits from harnessing excess energy are received primarily by commercial electric customers and electric customers not receiving the benefit of PCE. Community facilities such as health clinics, schools and community centers would receive the benefit from excess wind generated electrons if electric thermal nodes such as electric boilers were installed. Renewable energy resource availability (kWh per month) 83,000 kWh per month (estimated) Estimated sales (kWh) $13,750 per month (estimated) Revenue for displacing diesel generation for use at private sector businesses ($) 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? Innovus has made offers to provide project financing based upon performance. Innovus’s offer would reduce the front end payments significantly and require regular payments as fuel saving as documented by the utility. Firm negotiations on this point have not begun. 6.2.3 Cost Overruns Describe the plan to cover potential cost increases or shortfalls in funding. TDX Power is anticipating sharing all cost overrun risks with Innovus based upon the factors that drive project costs. 6.2.4 Subsequent Phases Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 28 of 32 7/8/14 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. TDX Power does not anticipate subsequent phases to this project. 6.3 Other Public Benefit Criteria: Stage 3-4.C: Other benefits to the Alaska public are demonstrated. Avoided costs alone will not be presumed to be in the best interest of the public. Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the purpose of evaluating this criterion, public benefits are those benefits that would be considered unique to a given project and not generic to any renewable resource. For example, decreased greenhouse gas emission, stable pricing of fuel source, won’t be considered under this category. Some examples of other public benefits include:  The project will result in developing infrastructure (roads, trails, pipes, power lines, etc.) that can be used for other purposes  The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.)  The project will solve other problems for the community (waste disposal, food security, etc.)  The project will generate useful information that could be used by the public in other parts of the state  The project will promote or sustain long-term commercial economic development for the community The project will develop a sustainable electrical infrastructure, and this technology can be implemented in other rural Alaskan communities. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 29 of 32 7/8/14 SECTION 7 – SUSTAINABILITY Describe your plan for operating the completed project so that it will be sustainable throughout its economic life. Include at a minimum:  Capability of the Applicant to demonstrate the capacity, both administratively and financially, to provide for the long-term operation and maintenance of the proposed project  Is the Applicant current on all loans and required reporting to state and federal agencies?  Likelihood of the resource being available over the life of the project  Likelihood of a sufficient market for energy produced over the life of the project TDX Sand Point Generating will assume ownership of all assets associated with this project. All matching funds will be included in the utility’s rate structure, in accordance with AEA and RCA requirements. TDX Power has full‐time onsite operators, supported by in‐house engineering and maintenance personnel who travel to the site as needed. Operations and maintenance costs will be included in the tariff filing that will be reviewed by the regulatory authorities. 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 Preliminary Conceptual design has been completed by TDX Power and Innovus. The project is ready for deployment and could be operational in 12 months from contract initiation. No additional permits will be required. All the land and infrastructure are in place. 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. In support of the project: Glen Gardner Jr. – Mayor, City of Sand Point Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 30 of 32 7/8/14 Glen Gardner Jr. – President Shumagin Corporation 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. Sand Point utility has received two other AEA grants to develop the wind-diesel power plant. The first was for the installation of two Vestas V39 wind turbines and the second was for the deployment of dispatchable heating in community building that use excess wind energy. The second grant (Sand Point Excess Wind Utilization #7081163) is under way now and should be completed on schedule. SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below please provide a list of additional information submitted for consideration. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 31 of 32 7/8/14 SECTION 13 – AUTHORIZED SIGNERS FORM Community/Grantee Name: Regular Election is held: Date: Authorized Grant Signer(s): Printed Name Title Term Signature Kord Christianson President, TDX Power I authorize the above person(s) to sign Grant Documents: (Must be authorized by the highest ranking organization/community/municipal official) Printed Name Title Term Signature See attached TDX Power Board Resolution Grantee Contact Information: Mailing Address: 615 E 82nd Ave, Suite 200 Anchorage, AK 99518 Phone Number: 907-762-8487 Fax Number: E-mail Address: kord@tdxpower.com Federal Tax ID #: 92-0167220 Please submit an updated form whenever there is a change to the above information. Renewable Energy Fund Round IX Grant Application - Standard Form AEA 15003 Page 32 of 32 7/8/14 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 Kord Christianson Signature Title President, TDX Power, Inc. Date 9/15/215