HomeMy WebLinkAboutFinal AEA grant applicationAEA 15003 Page 1 of 30 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
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In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary
company data be kept confidential subject to review and approval by the Authority. If you
want information to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept confidential.
If the Authority determines it is not confidential it will be treated as a public record in
accordance with AS 40.25 or returned to the applicant upon request.
Renewable Energy Fund Round IX
Grant Application - Standard Form
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SECTION 1 – APPLICANT INFORMATION
Please specify the legal grantee that will own, operate, and maintain the project upon completion.
Name (Name of utility, IPP, local government, or other government entity)
Native Village of Shungnak
Type of Entity: Fiscal Year End:
Native Tribe September 30
Tax ID #
Tax Status: ☐ For-profit ☐ Non-profit ☒ Government (check one)
Date of last financial statement audit:
Mailing Address: Physical Address:
P.O. Box 64
Shungnak, Alaska 99773
Telephone: Fax: Email:
907-437-2163 907-437-2183 tribeadmin@issingnak.org
1.1 Applicant Point of Contact / Grants Manager
Name: Glenda Douglas Title: Administrator
Mailing Address:
P.O. Box 64
Shungnak, Alaska 99773
Telephone: Fax: Email:
907-437-2163 907-437-2183 tribeadmin@issingnak.org
1.1.1 APPLICANT SIGNATORY AU THORITY CONTACT INFORMATION
Name: Ivan Lee Title: President
Mailing Address:
P.O. Box 64
Shungnak, Alaska 99773
Telephone: Fax: Email:
907-437-2163 907-437-2183 tribeadmin@issingnak.org
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
James Comack 907-412-2184 907-437-2173 transportation@issingnak.org
Sonny Adams 907-265-4185 907-343-5686 Sonny.Adams@nana.com
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Grant Application - Standard Form
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1.2 Applicant Minimum Requirements
Please check as appropriate. If applicants do not meet the minimum requirements, the application
will be rejected.
1.2.1 Applicant Type
□ An electric utility holding a certificate of public convenience and necessity under AS 42.05, or
□ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
□ A local government, or
☒ A governmental entity (which includes tribal councils and housing authorities)
1.2 APPLICANT MINIMUM REQUIREMENTS (continued)
Please check as appropriate.
☒ 1.2.2 Attached to this application is formal approval and endorsement for the project by the
applicant’s board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s governing
authority is necessary. (Indicate by checking the box)
☒ 1.2.3 As an applicant, we have administrative and financial management systems and follow
procurement standards that comply with the standards set forth in the grant agreement (Section
3 of the RFA). (Indicate by checking the box)
☒ 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. (Any
exceptions should be clearly noted and submitted with the application.) (Indicate by checking
the box)
☒ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for
the benefit of the general public. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
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Grant Application - Standard Form
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SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Shungnak Wind-Diesel Conceptual Design
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.
Latitude: 66.880226
Longitude: -157.168627
The project will be implemented at the proposed new landfill in Shungnak, Alaska, which is located
1 mile southwest of the community in close proximity to the Shungnak-Kobuk transmission line.
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
The community of Shungnak, Alaska will benefit from this project. The neighboring community of
Kobuk will also benefit from this project when the turbine is installed and becomes part of the energy
intertie between Kobuk and Shungnak. Assuming a new intertie would be developed between
Shungnak and Ambler (currently in the planning phase), this wind project could also benefit Ambler.
2.3 Project Type
Please check as appropriate.
2.3.1 Renewable Resource Type
☒ Wind ☐ Biomass or Biofuels (excluding heat-only)
□ Hydro, Including Run of River ☐ Hydrokinetic
□ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy
□ Solar Photovoltaic ☐ Storage of Renewable
□ Other (Describe) ☐ Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
□ Reconnaissance ☐ Final Design and Permitting
☒ Feasibility and Conceptual Design ☐ Construction
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Grant Application - Standard Form
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Grant Application - Standard Form
2.4 Project Description
Provide a brief one paragraph description of the proposed project.
Using the conclusions from our completed Wind Resource Data Collection Report, the Native Village
of Shungnak will, with assistance from Alaska Energy Authority (AEA), initiate and complete the
conceptual design process and establish an environmental baseline to successfully install a wind-
diesel system in the community. This includes automated controls and the equipment necessary to
regulate, control and deliver reliable wind energy to the residents of the community. The project
will also establish an environmental baseline and a list of permits for the projected wind
turbine, in addition to associated equipment installations needed to upgrade the existing power
generation and distribution system to a wind turbine-diesel engine configuration. The Native Village
of Shungnak will hire and contract with WHPacific to complete the design project as well as provide
management oversight of subcontracted engineering/design firms. Assuming the project progresses
to construction, the consultant will also complete the Final Design and needed construction
solicitation packages by collaborating with the NANA Regional Corporation, Shungnak Power Plant
operator, and the Native Village of Shungnak.
2.5 Scope of Work
Provide a scope of work detailing the tasks to be performed under this funding request. This
should include work paid for by grant funds and matching funds or performed as in-kind match.
The Native Village of Shungnak is proposing a feasibility study and conceptual design. The
proposed work-breakdown structure is delineated below.
Project Management – NANA Regional Corporation’s Project Manager, in accordance with the
engineering consultant, will oversee and manage the design effort. The project manager will serve
as the primary point of contact and will be responsible for overall team quality control, project
coordination and time control. Project time control will involve progress tracking and comparison with
the project schedule. Written progress reports will be provided as a result.
Village Meetings & Site Visits –- Village meetings and site visits will be conducted to assure the
community is in alignment with the proposed project and to understand the Shungnak infrastructure,
collect site specific information, inform stakeholders of progress and ascertain public opinion of the
planned wind diesel hybrid system.
Refine Electric and Heating Load Assessment –- The engineering consultant will conduct office-
based research and field investigation along with a visit to Shungnak as the primary objective of this
task. The Consultant will verify all information collected via phone and office interviews, identify and
document heating loads to estimate fuel and electrical usage, assess and document diesel power
plant generators, switchgear, distribution, controls, and bulk fuel. The Consultant will also meet with
the Utility, Tribe and City Administrator to gather additional pertinent information.
Power System Assessment and System Modeling – The project will include a modeling analysis that
will depict the power quality impact of a hybrid power system. The Consultant will analyze upgrades
to the diesel power plant controls and switchgear necessary for the integration of wind power.
Site Assessment (Land, ROW, etc.) – The Consultant will identify the wind power project site and
electrical power distribution routing for Shungnak. The Consultant will then conduct an analysis to
determine land ownership, identify Right-of-Way issues, and develop preliminary engineering
sketches for identified road, pad, and site needs.
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Desktop Geotechnical Study – The engineering consultant will conduct a Geotechnical Desktop
Study of the wind power project site. This will include a survey of known geotechnical conditions
around Shungnak and specifically at the turbine site. An analysis of possible gravel sources will also
be provided.
Construction Cost and O&M Cost Estimate – The consultant will prepare cost estimates for the
project based on the conceptual engineering design. The estimate will include turbine costs, site
development costs, engineering estimates, a list of ancillary equipment needed, mobilization costs,
and miscellaneous costs. In addition, the Consultant will estimate expected system operations and
maintenance costs following system installation.
Desktop Permitting and Environmental Review – Desk-top investigations will include wetlands and
wildlife habitat desktop studies, cultural resource surveys, as well as site-control and geophysical
hazard risk assessments in the wind turbine site area, along project access roads and proposed
routes for electric power lines. The Consultant will identify potential environmental permits, provide
recommendations on permit acquisition strategies, and assist in procuring permits in accordance
with available budgetary funds.
Conceptual Design Report – The engineering consultant will author a conceptual design report that
includes the desk-top geotechnical study, permitting, environmental, electrical, mechanical, civil,
structural and foundation discussions. The Consultant will include a cost estimate for the project.
The Village will coordinate with the power plant owner to collect information regarding necessary
upgrades and conceptual level planning documents.
SECTION 3 – Project Management, Development , and Operation
3.1 Schedule and Milestones
Criteria: Stage 2-1.A: The proposed schedule is clear, realistic
, and describ
ed in adequate detail.
Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding
request. Be sure to identify key tasks and decision points in in your project along with estimated
start and end dates for each of the milestones and tasks. Please clearly identify the beginning and
ending of all phases of your proposed project. Add additional rows as needed.
Milestones
Tasks
Start
Date
End Date
Deliverables
Project Management 8/15/16 9/1/2017 Project Execution Plan
Quarterly Reports
Final Report 8/1/16 9/1/16
Village Meetings & Site Visits 9/1/16 11/10/2016 Trip Report
Village Kick-off meeting 9/1/16 10/1/2016
Engineer Site Assessment 9/1/16 10/1/2016
Project Close-out 8/1/17 9/14/17
Power System Assessment,
Integration System, System
Modeling
12/1/16
3/1/17
Summary Document
Refine Electric and
Heating Load Assessment
12/1/16 3/1/17
Power System modeling
with heat loads
12/1/16 3/1/17
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Grant Application - Standard Form
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Renewable Energy Fund Round IX
Grant Application - Standard Form
Integrate modeling results
into CDR
12/1/16 3/1/17
Civil Site & Ancillary
Infrastructure Design &
Layout (Land, ROW road etc.)
12/1/16 3/1/17 Civil Site Plan, to include
all ancillary infrastructure
Pad/Road Preliminary
Engineering & Designs
12/1/16 3/1/17
Intertie, Transmission, &
Sub-station
12/1/16 3/1/17
Desk Top Geotechnical Study 2/1/17 4/1/17 Summary Document
Construction and O&M Cost
Estimate
3/1/17
5/1/17 Conceptual Construction
Cost Estimate
Development of logistics
plan
3/1/17
4/1/17
Construction Cost Estimate 3/1/17 4/1/17
Permitting and Environmental
Review
3/1/17
5/1/17 Summary Document
Permit Review 3/1/17 5/1/17
Permit sketch for
permitting agencies
3/1/17 5/1/17
Desk-top environmental
review
3/1/17 5/1/17
Conceptual Design Report 5/1/17 10/1/17 Final 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.
The Native Village of Shungnak is requesting $135,000 from the Alaska Energy Authority to complete
the project through the conceptual design phase and initiate environmental baseline activities
needed to proceed with construction and installation of the turbine.
As a START Program Recipient, the Native Village of Shungnak will be able to provide a significant
contribution due to this partnership with the Department of Energy. Along with NANA Regional
Corporation’s contribution, our contribution could be in excess of $39,000; or at least 28% of the total
budget.
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.
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.
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Renewable Energy Fund Round IX
Grant Application - Standard Form
Milestone or Task
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on phase
and type of project. See sections
2.3 thru 2.6 of the RFA )
$
$
$
Project Management $10,000 $39,000 NRC/
Applicant/START
Program
$25,000
Village Meetings & Site Visits $20,000 $20,000
Refine Electric and Heating Load
Assessment
$15,000 $15,000
Power System Assessment and
System Modeling
$15,000 $15,000
Civil Design Site Assessment
(Land, ROW road etc.)
$22,500 $22,500
Desk Top Geotechnical Study $10,000 $10,000
Construction and O&M Cost
Estimate
$10,000 $10,000
Permitting and Environmental
Review
$12,500 $12,500
Conceptual Design Report $20,000 $20,000
$ $ $
TOTALS $135,000 $ $150,000
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
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Renewable Energy Fund Round IX
Grant Application - Standard Form
3.2.3 Cost Justification
Indicate the source(s) of the cost estimates used f
or the project budget.
The source of the cost estimate for this phase incl
previous experience performing this work.
udes WHPacific’s engineer’s estimate and
3.2.4 Funding Sources
Indicate the funding sources for the phase(s) of th
e project applied for in this funding request.
Grant funds requested in this application $135,000
Cash match to be provided $
In-kind match to be provided NANA Regional Corporation $39,000
Total costs for project phase(s) covered in application (sum of above) $174,000
3.2.5 Total Project Costs
Indicate the anticipated total cost by phase of the
costs for completed phases.
project (including all funding sources). Use actual
Reconnaissance $60,000
Feasibility and Conceptual Design $125, 000
Final Design and Permitting $300,000
Construction $5,000,000
Total Project Costs (sum of above) $5,485,000
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 diesel generation to be turned off.
Some projects may allow 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.
$7,000
Option 2: Diesel generation OFF
For projects that will result in shutting down
diesel generation please estimate:
1. Annual non-fuel savings of shutting off
diesel generation
2. Estimated hours that diesel generation
will be off per year.
3. Annual O&M costs associated with the
proposed renewable project.
1. $
2. Hours diesel OFF/year:
3. $
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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.
Project communications is vital. The team will employ an active project communications plan in order
to perform outreach to the project’s stakeholders.
The project manager, Sonny Adams, will administer communication responsibility. Communication
responsibilities will include the production of progress reports for grant reporting to AEA and
completing adequate oversight. Monthly project coordination meetings will be held with the project
team to track progress and address issues as they arise. Two on-site meetings with the Village will
be held. The Project Manager and Consultant staff will travel to Shungnak at the beginning and end
of the project to present project updates to IRA during Council meetings.
3.4 Operational Logistics
Criteria: Stage 2-1.D: Logistical, business, and financial arrangements for operating and maintaining
the project throughout its lifetime and selling energy from the completed project are reasonable and
described in adequate detail.
Describe the anticipated logistical, business, and financial arrangements for operating and
maintaining the project throughout its lifetime and selling energy from the completed project.
The primary focus of this phase is to confirm the logistical, business, financial, and operating
frameworks in effect within the utility’s operations.
At this time AVEC, in association with the Local Utility Board in Shungnak, will assume responsibility
for the functionality of the installed system. It is intended that the proposed system will be fully
integrated into Utilities Operations. To achieve this, the Utility Board will work to ensure the
anticipated logistical, business, and financial arrangements are in place for the successful operation
of the integrated wind.
4.1 Project Team
Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and
experience to successfully complete and operate the project. If the applicant has not yet chosen a
contractor to complete the work, qualifications and experience points will be based on the applicant’s
capacity to successfully select contractors and manage complex contracts.
Criteria: Stage 2-2.B: The project team has staffing, time, and other resources to successfully
complete and operate the project.
Criteria: Stage 2-2.C: The project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
Criteria: Stage 2-2.D: The project team has positive past grant experience.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information, and a
resume. In the electronic submittal, please submit resumes as separate PDFs if the applicant would
like those excluded from the web posting of this application. If the applicant does not have a project
manager indicate how you intend to solicit project management support. If the applicant expects
project management assistance from AEA or another government entity, state that in this section.
SECTION 4 – QUALIFICATIONS AND EXPERIENCE
Renewable Energy Fund Round IX
Grant Application - Standard Form
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The Native Village of Shungnak will implement a collaborative project management approach by
assembling a team consisting of the Village’s Tribal Administrator and Bookkeeper, NANA Regional
Corporation (NRC) staff, NRC accounting team members, and external engineering consultants.
The proposed team has extensive experience and knowledge in the development of renewable
energy & wind diesel systems in the Arctic. Resumes for project leaders have been attached to the
proposal to present their qualifications. Mr. Sonny Adams, Director of Energy at NRC, will assume
the role of Project Manager for this project. Mr. Adams will provide oversight to accounting staff and
engineering contractors. He will also provide coordination of special projects including project
development, planning, and construction coordination and reporting. Glenda Douglas, Administrator
for the Native Village of Shungnak, will provide onsite coordination of logistics for the Project
Manager. Gary Tickett, Bookkeeper for the Native Village of Shungnak, will assist the Administrator
with receiving, approving, processing and paying invoices from the consultant(s).
The Native Village of Shungnak has selected WHPacific as its engineering contractor to perform the
Conceptual Design and Feasibility Study. The engineering consultant will provide specifications,
design and drawings for construction of the wind turbine site and technical input on generation and
distribution issues. It is anticipated the engineering consultant will also provide construction
administration on new construction performed during the next phase of this project.
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
The team selected by the Native Village of Shungnak has extensive experience and knowledge in
the development of renewable energy and wind energy systems in the Arctic. Furthermore, the
Native Village of Shungnak’s project team and collaborators understand the socio-economic context
of the project area.
Please see attached resumes for further information.
4.1.3 Project Accountant(s)
Indicate who will be performing the accounting of this project for the grantee and include a resume.
In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those
excluded from the web posting of this application. If the applicant does not have a project accountant
indicate how you intend to solicit financial accounting support.
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Grant Application - Standard Form
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The Native Village of Shungnak will employ the services of NANA Regional Corporation’s accounting
group to assist with project accounting.
The Project Accountant will be Kim Cunningham. See attached resume for review of his
qualifications. Native Village of Shungnak’s bookkeeper, Gary Ticket, will process invoices and
payments from the grant to Project Manager (NRC).
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.
NANA’s Enterprise Resource Planning (ERP) system is Deltek Costpoint. The Finance/Accounting
department is the primary user of the ERP system. Within Costpoint, NRC will set up a project for
this grant and Jameson Fisher will be the primary accountant involved with accounting for the grant
within the ERP system. As noted above, NRC will set up a project in the accounting system for this
grant. In the project setup, they will only allow direct charges – no overhead will be charged.
Additionally, all costs will be subject to NANA’s normal accounts payable process and the associated
controls including:
Obtainment of necessary approvals
Coding review for all charges to ensure they are accurately charged to the correct projects and
accounts,
Review of supporting documents (invoices, etc.),
Requiring dual signatures for all checks.
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.
As the applicant, the Native Village of Shungnak is deeply committed to its local workforces in the
operations of the proposed system. Currently, the Native Village of Shungnak has been selected
by the US Department of Energy and its START program. The START program will continue the
process of workforce development in Shungnak, building upon the trained power plant and water
and sewer operators.
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Grant Application - Standard Form
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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.
A MET tower was erected at the proposed wind turbine site in Shungnak from August 2013 to August
2014. To date, the wind resource appears beneficial with a measured average wind speed at 30
meters of 5.27 m/s. Based on this data, Windographer software predicts a Class 3 (fair) wind
resource. Measured turbulence to date is also acceptable with a mean turbulence intensity of 0.10
at 15 m/s, classifying the site so far as IEC 61400-1 3rd edition as a category C.
A smaller met tower was also deployed to the proposed landfill site. The new landfill site is
approximately 1.5 miles closer to the community of Shungnak. This site will have an access road
that would be financed by alternative sources and access to the Shungnak/Kobuk transmission line,
and a potential significant decrease in project development costs.
AEA provided project developers with a 10 meter met tower that was sited at the land-fill site. This
wind data was then correlated with wind speed at 18 meters, 32 meters, 33 meters, and the ASOS
data. All of the date was showing the same general shape of the wind speed graph. Interestingly
enough, the 10 meter data was recording higher wind speeds than the other anemometers. There
are some plausible reasons why this is occurring, including some icing events or elevation
differentials. It is reasonable to assume that the 10 meter met tower site is comparable to the taller
met tower. All of this data has been previously submitted to AEA.
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
The following permits and/or authorizations will be necessary for installation of the wind turbine(s):
USACE Section 404/401 Wetlands Permit and Water Quality Certification – expected to take
90 days, dependent upon the ability to assess the potential for wetlands during an appropriate
time of year.
Title 16 Fish Habitat Permit – This permit takes between 90 and 120 days to obtain. We will
consult with ADF&G to determine whether or not any streams impacted by the project contain
resident fish. If resident fish are determined to be present in streams, then a Title 16 Fish
Habitat Permit will be pursued. Project culverts would be designed for fish passage.
SHPO “No Historic Properties Affected” 60-90 days will be allotted for a consultation to be
conducted for this topic. If SHPO determines that cultural and historic resources could be
located here, archaeological monitoring will be conducted during construction of the project.
SECTION 5 – TECHNICAL FEASIBILITY
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Alaska Pollutant Discharge Elimination System (APDES), Construction General Permit
(CGP) and Notice of Intent (NOI). – Seven days after filing the Notice of Intent and the Storm
Water Pollution Prevention Plan, the permit coverage begins. Permitting timeline is 30 days.
Vegetation Clearing Not Permitted between May 20 and July 20 – We will observe
appropriate clearing timelines. Compliance with this requirement involves only observing the
appropriate clearing dates.
FAA Notice of Proposed Construction (Form 7460) Notice of Proposed Construction or
Alteration – Filing for this permit is done online and not less than 30 days prior to the intended
start of construction. Intentional follow-up with FAA for the permit may be required. Permitting
timeline is 60 days.
Northwest Arctic Borough Title 9 permit – 20 day public comment period, permitting timeline
45 days
NANA Regional Corporation Lands Department permit – 10 days
5.2 Project Site
Criteria: Stage 2-3.B: A site is available and suitable for the proposed energy system.
Describe the availability of the site and its suitability for the proposed energy system. Identify
potential land ownership issues, including whether site owners have agreed to the project or how
you intend to approach land ownership and access issues.
The site for turbines is owned by NANA Regional Corporation and is identified in the image below
as the Future Land-Fill site. Through the IRR program, construction funding has been secured for
most of the proposed road. The need for road construction should not be a component of the final
construction budget.
NRC will give Shungnak site control through a long term lease and permit. A letter of commitment
from the NRC CEO is attached below indicating this agreement. The Native Village of Shungnak
will add the surveyed road path to the site to their BIA roads inventory. This will allow for future road
maintenance and improvements on this access road utilizing BIA Tribal Transportation funds. Over
50% of construction funding for the access road has been secured.
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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.
During the design phase, we anticipate the following risk factors and potential mitigation factors:
1. Site Selection: Site selection during the design engineering phase must be developed
carefully.
2. Technological Partnerships to Mitigate Technology Risk: Partnerships, cooperative
agreements and equipment scheduling for major equipment needs will be considered in order
to contain costs for this installation. The Native Village of Shungnak is a current participant
in the START Program and will seek out DOE subject matter experts to assist with
technical/technological review.
3. Inaccurate or Incomplete Power Plant Data: The Village intends to mitigate this by
developing a data collection protocol on power plant performance and reconstructing
historical performance where we may have data gaps and will look to the START Program to
assist with appropriate performance modeling.
4. Technology Performance: Northwest Alaska has some of the harshest climatic
environments. Technology may not perform as intended. We will mitigate this by
collaborating with Alaska Village Electric Cooperative, the Alaska Center for Energy and
Power, and technology providers to assure that the technology is appropriate and adapted
for the targeted environment.
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5.3.2 Environmental Risk
Explain whether the following environmental and land use issues apply, and if so how they will be
addressed:
Threatened or endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and describe other potential barriers
The environmental permitting steps below are based on the publication Alaska Wind Energy
Development: Best Practices Guide to Environmental Permitting and Consultations, a study done by
the URS Corporation for the Alaska Energy Authority in 2009.
Alaska Department of Environmental Conservation:
Alaska Pollution Discharge Elimination System - State regulations (18 AAC 83 APDES) require that
all discharges, including storm water runoff, to surface waters be permitted under the Alaska
Pollutant Discharge Elimination System (APDES) permit program, which aims to reduce or eliminate
storm water runoff that might contain pollutants or sediments from a project site during construction.
The construction of one or more wind turbines, and the connecting access road and power line, in
Shungnak would likely disturb one acre or more of soil, and thus must be permitted under the State
of Alaska’s Construction General Permit (CGP) and have a Storm Water Pollution Prevention Plan
(SWPPP). The construction contractor must submit a Notice of Intent (NOI) to Alaska Department
of Environmental Conservation (ADEC) before submitting a SWPPP. The DEC issues the final
APDES permit for the project after review and public comment periods.
US Fish and Wildlife Service and National Marine Fisheries Service:
Shungnak is located in an area that is mapped by the Anchorage Fish and Wildlife Field Office as
“No Consultation Necessary” for listed species under the Endangered Species Act. This map is
called “ESA Listed Species Consultation Guide – Anchorage Fish and Wildlife Field Office.” The
legend states “If your project is located within Solid Green on this map, there are no listed species
present within your project area and no consultation is necessary.”
Native Village of Shungnak must also be aware of USFWS regulations and guidance under Migratory
Bird Treaty Act, which prohibits the taking of active bird nests, their eggs and young. USFWS has
developed “Bird Windows” statewide that prohibit clearing and construction activity. The bird window
in the Shungnak area is May 1 to July 15, except for Canada geese and swan habitat where the
window begins April 20. Clearing before or after these dates is allowed. Clearing activity or
5. Logistics: Shungnak is one of the most isolated communities in the state of Alaska, with
no/limited barge access due to the low river levels in the Kobuk River. Careful logistics
planning and supply chain development will need to be undertaken during the conceptual
design phase in order to assure equipment arrival when the project reaches the construction
phase.
Shungnak’s participation with the START program creates an opportunity for AEA to collaborate with
the DOE on a demonstrable project, effectively demonstrating an effective public/private partnership.
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construction activities with the potential to disturb nesting habitat during the window is not allowed.
The USFWS Wind Turbine Guidelines Advisory Committee developed guidelines and
recommendations for wind power projects to avoid impacts to birds and bats. These
recommendations were sent to the Secretary of the Interior in March 2010 and should be referred to
during design and construction.
Federal Aviation Administration:
Determination of No Hazard to Air Navigation – Native Village of Shungnak may be required to file
an FAA Form 7460-01 (Notice of Proposed Construction or Alteration), as the proposed wind turbine
site(s) may be within the 1:100 airspace volume extension from the Shungnak Airport. Obstruction
lighting on the wind turbine(s) is likely to be required. Consultation with the FAA to determine the
appropriate obstruction lighting will be required.
State Historic Preservation Office (SHPO) consultation– The project design consultant will
complete a consultation under Chapter 41.35 Article 1 – Alaska Historic Preservation Act.
US Army Corps of Engineers:
The US Army Corps of Engineers (USACE) requires the placement of fill in “waters of the United
States,” including wetlands and streams, under Section 404 of the Clean Water Act (CWA). Because
much or all of the proposed wind turbine site(s) in Shungnak may be located on wetlands, Native
Village of Shungnak must receive a Section 404 permit from the Alaska District USACE.
Environmental Approach:
If it is determined through the permitting process a determination is required, Contractor will organize
a pre-application meeting to be coordinated through the Alaska Department of Natural Resources
for the Shungnak Wind-Diesel Project. All agencies, including federal agencies, will be asked to
participate. The meeting will identify and discuss appropriate permit issues and provide agency
perspective on the proposed development. Discussions, if required, should include actions to avoid,
minimize and mitigate wetlands impacts. Preliminary concerns for impacts to possible cultural sites
will be identified. Results of this agency pre-application meeting will be a three to five page meeting
report summarizing agency concerns, issues and possible mitigation or compensation proposals.
This will be as comprehensive as possible, but may not identify all permits required for project
development given the preliminary nature of the development proposal.
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.
AVEC provides electricity to Shungnak via diesel generation with a total capacity of 1,210 kilowatts.
(from NRC website - Shungnak)
Based on review of filings with the Regulatory Commission of Alaska (RCA), the diesel electric
generation plant in Shungnak, that also provides power to Kobuk, consists of the units shown in
Table 1.
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Table 1: Shungnak Power Generation Units
Engine Size (kW) Commissioning
dates
Engine Control
Panels
John Deere 6619
(position 1)
202
1991 (Originally
installed in Noatak
in 1985)
Emerson s/n
47G23
CAT 3406 (position 2) 297 1984 Simplex s/n 24575
Detroit Diesel S60
(Position 4) 314 1998 Control Power s/n
1656-8
Cummins KTA1150
(Position 5) 397 1991 Control Power s/n
1656-7
The generator controls are all manually operated. They have analog metering, ice cube (plug-in)
relays, and include modules for load share and paralleling between units.
The AVEC Shungnak power plant was energized in 1971, with three generation units in the Butler
building. The plant now has two units in the Butler Building and two additional generation modules,
(positions 4 &5). All the engine controls are in the Butler building
.
Shungnak power plant, 2011
The diesel generation efficiency for
Shungnak in 14.10 kWh/gal.
The electric energy in Kobuk is produced at
the diesel generation plant in Shungnak
and delivered through the existing
Shungnak-Kobuk intertie. The intertie is
approximately 7 miles in length and has
been in existence for about 30 years (AVEC
Kobuk).
The intertie does experience outages on
occasion. During an outage, Kobuk must self-generate electricity with their existing diesel plant.
This plant is reported to have a capacity of 75 kW (NWAB Kobuk Comp Plan).
AEA’s Power Cost Equalization Program (PCE) report for FY 2013 indicates that Kobuk purchased
624 MWh of energy.
Additional PCE data from 2013 indicates that the average demand in Kobuk is 57.5 kW.
The Alaska Department of Commerce, Community, and Economic Development recently allocated
approximately $1.5M to the Northwest Arctic Borough for improvements to the Shungnak-Kobuk
intertie. It is assumed that the existing intertie will continue to have the capacity to supply the electric
energy needs of Shungnak-Kobuk (from Cosmos Hills study, but edited for updates).
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The combined annual generation for Shungnak-Kobuk for the past five years is shown in Table 2.
(AIDEA PCE).
Table 2: PCE Electric Demand
Shungnak PCE Ambler PCE
(assuming an intertie) Combined PCE
FY Year
Energy
Generated,
kWh
Avg
Power,
kW
Energy
Generated,
kWh
Avg
Power,
kW
Energy
Generated,
kWh
Avg.
Power,
kW
2008 1,483,862 169 1,321,573 151 2,805,435 320
2009 1,477,747 169 1,245,599 142 2,723,346 311
2010 1,578,459 180 1,249,161 143 2,827,620 323
2011 1,546,541 177 1,314,441 150 2,860,982 327
2012 1,588,139 181 1,343,144 153 2,931,283 335
2013 1,732,010 204 1,318,829 147 3,050,839 351
2014 1,721,532 186 1,249,892 141 2,971,425 327
Escalation Rate 1.8% 0.9% 1.4%
The electrical demand in both communities has risen over the past several years. It is assumed this
trend will continue at a conservative rate of 1% for both communities. The projected generation for
the next 50 years is shown in Table 3.
Table 3: Projected Energy Demand
Shungnak-Kobuk,
kWh
Ambler,
kWh
Combined,
kWh
FY 2015 (year 0) 1,606,819 1,329,832 2,936,651
FY 2038 (year 25) 2,060,636 1,705,419 3,766,056
FY 2063 (year 50) 2,642,626 2,187,084 4,829,710
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
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
vi. Is there operational heat recovery? YES If yes
estimated annual displaced heating fuel (gallons)
SEE ABOVE TABLE
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.
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b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor W e will confirm this information during this phase.
ii. Annual O&M cost for non-labor
i. Electricity [kWh] 1,732,010kWh
ii. Fuel usage
Diesel [gal] 122,825 gallons/year
Other
iii. Peak Load 340kW
iv. Average Load 204kW
v. Minimum Load 143kW (average)
vi. Efficiency 14.10kWh/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
5.4.2 Future Trends
Describe the anticipated energy demand in the community over the life of the project.
Energy demand for Shungnak and Kobuk has shown an increasing trend over the last 10 years.
These communities have viable employment opportunities with a mining exploration camp in the
summer time and several members are employed annually at Red Dog Mine. Thus, it is likely that
energy demand will continue to grow in these targeted communities.
Furthermore, Nova Copper has exhibited continued support in the exploration of the Upper Kobuk
Mineral District and is worth monitoring for continued load growth.
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.
According to Statistical Report of the Power Cost Equalization Program, Fiscal Year 2013, and from
AVEC, the diesel power plant generated 1,732,010 kWh in 2013, with an average annual load of 204
kW. The peak load of the Shungnak/Kobuk system is estimated to be about 340 kW. During 2013,
122,825 gallons of fuel were used for power generation in Shungnak/Kobuk, at an average diesel
generation efficiency of 14.10 kWh/gallon.
The proposed installation of a wind turbine will reduce the fuel usage as well as provide energy for
additional village heat loads; creating a reasonable expectation that a wind diesel system will have
a net positive impact on rates for village residents.
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Energy security for Shungnak must be emphasized. The very high price of Shungnak diesel
generator fuel is at the heart of the future of electric power generation for the area, thus making the
construction of renewable energy sources vital.
For this grant application, the cost-to-benefit ratio is considered conservative and this ratio will greatly
improve (increase) if even moderately higher fuel prices are seen in Shungnak.
In the benefit area of this grant application, about 70,000 gallons total (rounded) of displaced fuel is
estimated and is shown. The price per gallon of displaced fuel is also shown as $5.10 and is extracted
from the February 2014 PCE Statistical Report. For Shungnak, this price may be a conservative
number as explained below. (The explanation below is derived from the Cosmos Hills Hydro
Feasibility Study and Conceptual Design Report as prepared for Alaska Village Electric Corporation
(AVEC), 18 April 2014, Section 5.3 – Existing Energy Market, pages 39-43. This report was accepted
by AEA.)
AVEC provided fuel purchase data for Shungnak-Kobuk. This data, Shungnak Table 5-7 in Section
5.3 of the report, includes the delivered location, delivery type, date, quantity (gal), and unit cost
($/gal) of diesel fuel from 2004 through 2012 for Shungnak. The Shungnak table indicates that for
the years 2004-2012, 57% of the Shungnak fuel is delivered by air (no roads to Shungnak) and the
remaining quantity, 43%, by barge up the Kobuk River.
Additionally, the report indicated that all Shungnak fuel delivery for 2011 was flown in. The resulting
cost paid for this fuel was $6.53/gallon which created a very large increase (28%) in fuel cost
compared to the $5.10/gallon in this grant application. In 2013, the actual price AVEC paid for fuel
was $7.50/gallon – a 47% increase.
The problem with rising fuel costs has been exacerbated over the last decade due to an increasing
number of events where the Kobuk River has been too low to receive barges, forcing the fuel
deliveries to be transported by air at significantly higher costs. In 2013, local Shungnak residents
have even reported unusual instances where the river was low enough for villagers to walk across.
5.4.4 Proposed System Design
Provide the following information for the proposed renewable energy system:
A description of renewable energy technology specific to project location
Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Integration plan
Delivery methods
Renewable energy technology description
Wind power is considered to be viable renewable energy option for Shungnak. Utilizing the HOMER
energy program, project developers modeled an EWT DW52/54-500kW model turbine with a 52
meter rotor was modeled for Shungnak. The DW52/54-500kW was developed in response to market
demand and designed according to EWT's proven direct drive technology. This turbine is specifically
designed for operating in low/moderate wind speed areas. Streamlined production and cost
efficiency make EWT turnkey projects solutions highly attractive, delivering an excellent energy yield
which ensures an optimal return on investment.
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Optimum installed capacity
The system we plan consists of one (1) DW52/54-500kW turbine to operate with the existing diesel
plant as a wind-diesel hybrid power system. Installed wind power capacity will be 500kW.
Anticipated capacity factor
HOMER software was used to simulate conditions at Shungnak with one DW52/54-500kW wind
turbine running in conjunction with the existing power plant. HOMER calculates gross energy
production with no allowance for power plant downtime, turbine or generator maintenance,
equipment curtailment or any other reason. Regarding gross production for this wind system:
Renewable fraction from HOMER: 41%
Capacity factor on net wind production: 27.1%
Anticipated annual generation
HOMER software estimated gross annual wind production to be 1,200MWh with 434MWh excess
electrical energy. Anticipated net annual wind production is 766MWh.
Additional wind turbine options will be modeled for Shungnak, including Northwind 100’s during the
conceptual design phase.
Anticipated barriers
The only barriers we anticipate are the migratory bird window that will be observed and the
power plant will need to be updated. Otherwise, no barriers to successful installation and
integration of a wind turbine in Shungnak are expected.
Basic integration concept
The integration design concept is comprised of one DW52/54-500kW turbine or two NW 100’s, a
secondary load boiler to augment an existing diesel generator heat recovery loop (if deemed
necessary after further analysis), a secondary load controller to manage the “dumping” of excess
electricity (if necessary), a SCADA system to manage the combine operation of the diesel generators
and wind turbine, and a system to enable remote monitoring and control of the wind-diesel hybrid
power plant.
Delivery methods
The wind-generated electrical energy will be delivered utilizing a new one-mile distribution line
connecting to the existing electrical distribution grid.
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]
500kW Wind
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 2,160,000kWh (HOMER)
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
dry tons]
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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.
Specific metering equipment has not been specified. However, project developers intend to specify
metering equipment that will enable constant communication with the Utility, AEA, and the
manufacturer.
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 potential annual fuel displacement is projected to be approximately 70,000 gallons per year
over a 20-year project lifetime which equates to $357,000/year based on $5.10 per gallon.
There is a significant amount of additional electricity in the proposed system which could be used to
meet the thermal needs of Shungnak. For example: One 500kW EWT will produce approximately
434,000kWh per year of electricity that cannot be used for the primary load. It is available to be used
for heating commercial buildings, such as the school in the community. If all the excess electricity
was used for thermal energy, the savings of diesel fuel would be approximately 3,500 gallons per
year. Over 20 years the savings would add up to a total of $357,000. A similar argument could be
made for NW 100’s.
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
SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
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Identify the potential power buyer(s)/customer(s) and anticipated power purchase/s
Indicate the proposed rate of return from the grant-funded project.
ales price range.
At this stage, there will not be a power purchase agreement. The wind energy system will be
integrated into the existing diesel generation system.
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.
There are numerous non-economic public benefits to the Native Village of Shungnak over the lifetime
of this project. An important benefit of installing the proposed wind turbines would be to reduce the
direct and indirect costs of using fossil fuels in the region. This project could help stabilize energy
costs and provide long-term socio-economic benefits to village households. Locally produced,
affordable energy will empower community residents and may help avert rural-to-urban migration.
This project would have many environmental benefits resulting from a reduction of hydrocarbon use.
These benefits include:
1. Reduced potential for fuel spills or contamination during transport, storage, or use (thus
protecting vital water and subsistence food sources);
2. Improved air quality;
3. Decreased contribution to global climate change from fossil fuel use; and
4. Decreased coastal erosion due to climate change.
Renewable energy resource availability (kWh per month) 2,160,000kWh
(HOMER)
Estimated sales (kWh)
Revenue for displacing diesel generation for use at private sector businesses ($) N/A
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
phase and has considered options for financing subsequent phases of the project.
the grant-funded
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. N/A
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?
Currently, the Native Village of Shungnak is a participant in the DOE START Program. Project
developers will work with START Program Managers in order to identify funding vehicles for final
design and construction.
6.2.3 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
Our team will employ strict cost containment strategies during this phase in order to produce a useful
project. Through our team’s QA/QC process, we will also assure that all tasks are value-engineered
in order to minimize construction costs.
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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 amount requested from AEA for the engineering phase is insufficient to complete all needed
work. NRC and the affiliated stakeholder intend to reach out to the US Department of Energy, the
US Department of the Interior, USDA Rural Development, and other Federal Agencies in order to
complete the engineering work. It is intended to utilize a combination of funding, including loans and
other grant funding in order to complete the construction phase.
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
A potential public benefit to this project is establishing an Energy Pathway for Nova Copper and its
quest to develop mining operations in the area. Access to reliable energy/power is considered to be
a primary obstacle in the development of this mining resource. By demonstrating effective renewable
energy at the local level, mine developers can learn, and integrate renewable energy into its own
mine planning, creating economic benefit for all Alaskans.
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Business plan structures and concepts which may be considered: The wind turbine would be
incorporated into AVEC’s power plant operation. Local plant operators provide daily servicing. AVEC
technicians provide periodic preventative or corrective maintenance and are supported by AVEC
headquarters staff, purchasing, and warehousing.
How O&M will be financed for the life of the project: The costs of operations and maintenance
will be funded through ongoing energy sales to the villages.
Operational issues which could arise: Operational issues that could arise stem from the
remoteness of the proposed site. The proposed technology is a proven technology in the Arctic &
Western Alaska and the operational issues are well documented.
Operating costs: Different turbines have different operating costs; however, the estimated annual
O&M cost is $7,000.
Commitment to reporting the savings and benefits: Native Village of Shungnak is fully committed
to sharing the savings and benefits accrued from this project with their shareholders, and sharing
the project information with AEA.
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
A MET tower located on site has been used for observing wind speed over the course of 12 months.
Data was collected and Windographer software was utilized to produce the wind report. Design work
will begin immediately upon award of the grant. No other grants have been awarded to date to
support this project.
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.
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
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 28 of 30 7/8/14
Letters of Support and Commitment are attached below in Appendix 3. No letters of opposition have
been received; nor have project developers received any negative feedback.
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 Native Village of Shungnak has not been a recipient of other AEA Funding nor any other funding
for the development and deployment of a wind diesel system in Shungnak.
SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
In the space below please provide a list additional documents attached to support completion of prior
phases.
Native Village of Shungnak Resolution
AVEC Letter of Support
NANA Regional Corporation Letter of Support
Northwest Arctic Borough Letter of Support
Native Village of Kobuk Letter of Support
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below please provide a list of additional information submitted for consideration.
Through support of NANA Regional Corporation, a met tower was installed and wind data
collected, all with private sector resources, with the objective of lowering the cost of energy for
NANA Shareholders. NRC does not intend to own or even profit from the installed system.
Renewable Energy Fund Round IX
Grant Application - Standard Form
I
A. Contact information and resumes of Applicant's Project Manager, Project
Accou ntant(s), key staff, partners, consultants, and suppl iers 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 demonstrati ng 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
organizati on to the obligations under the grant.
Provides as point of contact to represent the applicant for purposes of this
appl ication.
Certifies the applicant is in compliance with applicable federal , state, and local ,
laws includi ng 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 appl icant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name
Signature
Title
Date
AEA 15003 Page 30 of 30 7/8/14
SECTION 14 - ADDI TIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
ENERGY AUTHORITY
Appendix B: Letters of Commitment & Support
AEA 15003 Page 32 of 32 7/8/14
Renewable Energy Fund Round IX
Grant Application - Standard Form