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HomeMy WebLinkAboutREFRound9Application-Unalaska-WaterTurbines-8-31-2015-signedRenewable Energy Fund Round IX ® _ . Grant Application - Standard Form ® ENERGY AUTHORITY SECTION 1 — APPLICANT INFORMATION Please specify the legal grantee that will own, operate, and maintain the project upon completion. Name (Name of uti/it , IPP, local government, or other government entit of Unalaska, Department of Public Utilities Type of Entity: Local Government Tax ID # 92-0036399 Fiscal Year End: June 30 Tax Status: ❑ For -profit ❑ Non-profit ® Government (check one) Date of last financial statement audit: 1/12/2015 (Independent Auditor's Report for FY2014) Mailing Address: Physical Address: P.O. Box 610 1035 East Unalaska, AK 99685 .Broadway Unalaska, AK 99685 Telephone: Fax: Email: 907-581-1260 907-581-2187 dwiniters@ci.unalaska.ak.us 1.1 Applicant Point of Contact / Grants Manager Name: J. R. Pearson Mailing Address: City of Unalaska, Dept. of Public Utilities P.O. Box 610 Unalaska, AK 99685 Title: Utilities Compliance Coordinator Tele hone: Fax: I Email: 907-581-1260 907-581-2187 1 irpearson@ci.unalaska.ak.us 1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION Name: Title: Dan Winters Director of Public Utilities J Mailing Address: City of Unalaska, Dept P.O. Box 610 Unalaska, AK 99685 Telephone: 907-581-1260 of Public Utilities Fax: Email: 907-581-2187 dwintei 1.1.2 Applicant Alternate Points of Contact unalaska.ak.us Name Telephone: Fax: Email: Lorna Days 907-581-1251 ext 3106 907-581-2187 ldays@ci.unalaska.ak.us Igregory ci.unalaska.ak.us Lori Gregory 907-581-1260 ext 8105 AEA 15003 Page 3 of 27 7/8/14 Renewable Energy Fund Round IX Grant Application alication - Standard Form ®�) ENERGY AUTHORTY V �E 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 LEI 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 boxy _ ® 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 htt :I/www,akener authorit .or /Pro rams/Renewable-Ener -Fund/Rounds#roue-ici9. (Any exceptions should be clearly noted and submitted with the application.) (Indicate by checking the box) ® 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. (Indicate yes by checking the box) AEA 15003 Page 4 of 27 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form ® ENERGY AUTHORITYT� SECTION 2 - PROJECT SUMMARY 2.1 Project Title Provide a 4 to 7 word title for your project, Type in the space below. Water Treatment Plant Inline Micro Turbines 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. 53.846484,-166.563180 (53°50-47.3"N 166°33-47.5"W) j 2.2.2 Community benefiting - Name(s) of the community or communities that will be the beneficiaries of the project. City of Unalaska 2.3 Project Type Please check as appropriate. 2.3.1 Renewable Resource Type ❑ Wind ❑ Biomass or Biofuels (excluding heat -only) I ® Hydro, Including Run of River ❑ Hydrokinetic Geothermal, Excluding Heat Pumps ❑ Transmission of Renewable Energy CSolar Photovoltaic ❑ Storage of Renewable ❑ Other (Describe) ❑ Small Natural Gas 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that applv) ❑ Reconnaissance ❑ Feasibility and Conceptual Design X Final Design and Permitting X Construction AEA 15003 Page 5 of 27 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form F2A Project Description Provide a brief one parag description of the GEED ® ENERGY AUTHORrrY This project will install inline micro -turbines in the new Pyramid Water Treatment Plant to generate power for its use as well as provide power to the Electric Utility's grid. The new Water Treatment Plant was designed and constructed with a configuration that would allow for micro -turbines to be installed at a future date. The enclosed attachments include a drawing that shows the area in the Water Treatment Plant that has been designated for the inline micro -turbines. This project is estimated to provide at least 64 KW of in-house power using the water that passes through the Water Treatment Plant for treatment or system flushing; 30 KW may be needed for the Water Treatment Plant's electrical usage. An annual average of 280,000 kWh of power production is anticipated, assuming that at least 32 KW of the available hydro -power can be produced. A 1997 DOE report indicated that up to 260 KW could be available from the source (Icy Creek Reservoir) with additional water diversions, so there may be potential for future low-cost power development. 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.. ➢ 35% Design: Gather stream data and validate existing data to optimize design, assess required permitting, provide 35% design drawings, engineers cost estimate, and estimated O&M costs. ➢ Final Design: Obtain any needed permits (no new permits are anticipated), 70% review drawings, 90% review drawings, and Final Design and Specifications. ➢ Construction Engineering Management: The design engineer will be available to provide engineering services during construction. As -built will be provided upon project completion. ➢ Construction: Procure turbine generators and control equipment, install turbine generators with electrical and mechanical modifications, integrate controls and monitoring into the existing SCADA system, provide reporting capabilities for monitoring and reporting electric production and usage. SECTION 3 —Project Management, ❑evelopment, and Operation 3.1 Schedule and Milestones Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail. Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding request. Be sure to identify key tasks and decision points in in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Add additional rows as needed_. Start Milestones Tasks Date End Date Deliverables Gather stream data and validate existing data to optimize design, 35% design drawing, 35% Design assess required permitting, 35% 7/1/2016 4/30/2017 engineers cost estimate, design drawings, engineers cost O&M costs estimate, O&M costs Complete required permitting as Permits, 70% drawings, 90% applicable, 70% design drawings, Final Design and Final Design drawings, 90/o o design drawings, 6/1/2017 10/31/2017 Specifications, as -built final design and specifications provided upon completion of -J prniect AEA 15003 Page 6 of 27 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form �GEMIU ENERGY AUTHORITY Procurement I Procure equipment � 12/1/2017 I 3/31/2018 Install micro turbines, integrate controls to SCADA, develop reporting features for electric Installation and production and usage, and commission inline micro 4/1/2018 commissioning turbines; Construction Engineering Management & As - built provided by the Design Procure inline micro turbine generators, control systems, and other needed equipment Inline micro turbines 8/31/2018 installed and operational, as -built drawings, reporting capabilities 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. This project is slated for $50,000 in funding via the City's FY2017 Capital Budget. Current plans are to begin the project in FY2018 and completed in FY2019. However, with funding assistance, the timetable of this project could be moved up to begin in FY2017. The total cost anticipated for this project is $1,340,000. The estimated cost for 35% design, permitting, final design, and construction engineering management is $300,000. Material and installation costs are estimated at $1,040,000. The City hopes to be awarded up to $1.1 Million in grant funds to complete this project. The City's Proprietary Enterprise Funds will be used to cover matching and additional costs. 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(aD-aidea.org. AEA 15003 Page 7 of 27 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form ®® ENERGY AUTHORITY~ Source of Matching RE- Fund Grantee Funds: Milestone or Task Grant Matching Cash/ln-kind/Federal TOTALS Funds Funds Grants/Other State Grants/Other (List milestones based on phase and type of project. See sections $ $ $ 2.3 thru 2.6 of the RFA _ Gather stream data, assess permitting needs, validate existing $ 48,000 $ 12,000 Proprietary Enterprise $ 60,000 data, 35% Design & Cost Funds Estimates 70% Design, 90% Design, Final Proprietary Enterprise $ 96,000 $ 24,000 $ 120,000 Design and Specifications $ 96,000 $ 24,000 Funds Construction Engineering Proprietary Enterprise $ 120,000 Management and As -built Funds TOTALS $ 240,000 $ 60,000 $ 300,000 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ 240,000 $ 60,000 Proprietary Enterprise $ 300,000 Funds Construction Services $ $ $ Other $ $ $ TOTALS $ 240,000 1 $ 60,000 $ 300,000 AEA 15003 Page 8 of 27 7/8/14 Renewable Energy Fund Round IX ®� --- Grant Application - Standard Form ® ENERGY AUTHORITY Milestone or Task (List milestones based on phase and type of project. See sections 2.3 thru 2.6 of the RFA ) Procure equipment Install and commission micro turbines RE- Fund Grant Funds _ Grantee Matching Funds $ Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS $ $ $ 520,000 $ 130,000 Proprietary Enterprise Funds Proprietary Enterprise Funds $ 650,000 $ 390,000 $ $ $ 312,000 $ $ 78,000 1_ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ 832,000 $ 208,000 $1 040,000 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ 520,000 $ 130,000 Proprietary Enterprise Funds $ 650,000 Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ 312,000 $ 78,000 Proprietary Enterprise Funds $ 390,000 Other $ $ $ TOTALS $ 832,000 1 $ 208,000 $1,040,000 AEA 15003 Page 9 of 27 7/8/14 Renewable Energy Fund Round IX ® AL mQa Grant Application - Standard Form ®® ENERGY AUTHORITY Milestone or Task RE- Fund Grant Funds $ Grantee Matching Funds $ $ Source of Matching Funds: I Cashlln-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 $ $ $ AEA 15003 Page 10 of 27 7/8/14 Renewable Energy Fund Round IX idENUD Grant Application - Standard Form ® ENERGY AUTHORITY 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 $ $ $ AEA 15003 Page 11 of 27 7/8/14 Renewable Energy Fund Round IX GOOD Grant Application - Standard Form ® ENERGY AUTHORFFY f 3.2.3 Cost Justification Indicate the source(s) of the cost estimates used for the project b et. Conceptual study completed by HDR in April 2009 with inflation and additional contingencies included. I_ 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 $ 1,100,000 Cash match to be provided $ 240,000 In -kind match to be provided $ Total costs for ro'ect hase s covered in application sum of above $ 1,340,000 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 $ 60,000 Final Design and Permitting $ 240,000 Construction $ 1,040,000 Total Project Costs (sum of above) $ 1,340,000 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 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 Option 1: Diesel generation ON For projects that do not result in shutting down $ 8,000 diesel generation there is assumed to be no Please note that this is a WAG. The conceptual impact on the base case O&M. Please indicate study did not include O&M cost estimates; the estimated annual O&M cost associated with however, O&M costs on micro turbines are the proposed renewable project. expected to be low. This WAG assumes a 50 year lifetime O&M average rate near $0.03 per _ kWh. Option 2: Diesel generation OFF For projects that will result in shutting down diesel generation please estimate, 1. Annual non -fuel savings of shutting off diesel generation 2. Estimated hours that diesel generation will be off per year. 3. Annual O&M costs associated with the proposed renewable project. 1.$ 2. Hours diesel OFF/year: 3. $ AEA 15003 Page 12 of 27 7/8/14 Renewable Energy Fund Round IX idolu D Grant Application - Standard Form ® ENERGY AUTHORITY 3.3 Project Communications Criteria: Stage 2-1.C: The applicant's communications plan, described in adequate detail. Describe how you plan to monitor the project and keep the R including monitoring and reporting, is informed of the status. The City plans to maintain communication with AEA's Grant's Manager, updating AEA on the status of the project through e-mail and telephone correspondence. J. R. Pearson, Utilities Compliance Coordinator, will be assigned the responsibility for communicating with AEA on project status. As required by conditions of the grant, quarterly or monthly reports will be completed and submitted to AEA by the City's Finance Department. J. R. Pearson and Lori Gregory, DPW Office Manager, will review and edit the reports prior to submittal to ensure the accuracy of the information provided. 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 City's Water Utility will operate and maintain the micro turbine system through its Enterprise Fund. Since the Water Utility and Powerhouse are both City owned, financial details have not yet been decided on how the excess energy produced will be sold. However, it is anticipated that the Water Utility will be reimbursed according to volume of fuel to offset the Powerhouse generated power. AEA 15003 Page 13 of 27 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form ANW) 001E)ENERGYAUTHORrrY CTI ON N4 —QUALIFICATIONS AND EXPERIENCE 4.1 Project Team Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and experience to successfully complete and operate the project. If the applicant has not yet chosen a contractor to complete the work, qualifications and experience points will be based on the applicant's capacity to successfully select contractors and manage complex contracts. Criteria: Stage 2-2.B: The project team has staffing, time, and other resources to successfully complete and operate the project. Criteria: Stage 2-2. C: The project team is able to understand and address technical, economic, and environmental barriers to successful project completion and operation. Criteria: Stage 2-2. D: The project team has positive past grant experience. 4.1.1 Project Manager Indicate who will be managing the project for the Grantee and include contact information, and a resume. In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Tom Cohenour will act as the Project Manager. 4.1.2 Expertise and Resources Describe the project team including the applicant, partners, and contractors Provide sufficient detail for reviewers to evaluate: • the extent to which the team has sufficient knowledge and experience to successfully complete and operate the project; • whether the project team has staffing, time, and other resources to successfully complete and operate the project; • how well the project team is able to understand and address technical, economic, and environmental barriers to successful project completion and operation. If contractors have not been selected to complete the work, provide reviewers with sufficient detail to understand the applicant's capacity to successfully select contractors and manage complex contracts. Include brief resumes for known key personnel and contractors as an attachment to your application. In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application City of Unalaska's project team includes: Dan Winters, Director of Public Utilities; Tom Cohenour, Director of Public Works (and Project Manager); Robert Lund, City Engineer; Clint Huling, Water Utility Supervisor; Matt Scott, Electrical Engineering Technician; and Mike Daniels, Chief Lineman Dan Winters will have the lead role to oversee the project. Tom Cohenour will be Project Manager. They will utilize the expertise of each member of the project team. Each person on the project team has extensive experience and can provide the resources needed to ensure a well -designed and effective system to maximize production of available energy. AEA 15003 Page 14 of 27 7/8/14 Renewable Energy Fund Round IX A Grant Application - Standard Form 4=11DENERGY AUTHORTY A contractor has not been selected. With the direction of Tom Cohenour as Project Manager, assisted by Robert Lund, City Engineer, the City will submit Design RFPs as needed and review proposals in accordance with City policy. Each team member will review the proposals using a matrix to access the qualifications of each proposer and all scores will be combined provide an overall score. Construction Contract award will be via sealed bid pursuant to City Ordinance. i 4.1.3 Project Accountant(s) Indicate who will be performing the accounting of this project for the grantee and include a resume. In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project accountant indicate how you intend to solicit financial accounting support. Patricia Soule, CPA is the Finance Director for the City of Unalaska and will be overseeing the grants fiscally from the Finance Department, ensuring what is billed to the grant has the proper backup. The contracting, procurement and project management of grants will be generated by the Public Utilities Department and their office staff. 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. There is a procurement policy for the City of Unalaska that will be followed. The front lines staff (2 DPW office staff) will receive training on grant management in October 2015 so that they will understand what expenses are allowable. The mid -level staff at DPU will be doing the contracting, procurement, and management of the program side of the grant and will have the grant agreement available to ensure they are following the grant conditions. The Finance Department is the final check in place to approve requisitions and ensure the proper signatures and competition is used for procurement of assets. 4.2 Local Workforce Criteria: Stage 2-2. E. The project uses local labor and trains a local labor workforce. Describe how the project will use local labor or train a local labor workforce. The City of Unalaska will utilize local fulltime City employees to review each phase of design. Throughout construction, they will attend regular meetings with the design engineer and contractor to follow progress and provide direction as needed. Each Public Utilities division requires employees to be trained and certified for their respective job duties. The Water and Wastewater Divisions are trained and certified through the Alaska Department of Environment Conservation; Landfill employees are trained and certified through the Solid Waste Association of North America; and Electric Linemen employees are trained in an apprenticeship program approved by the Alaska Department of Labor and Workforce Development and certified by the Alaska Department of Labor and Workforce Development. AEA 15003 Page 15 of 27 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form ®41111111MV) ENERGY AUTHORITY 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 (f applicable) as attachments to this application. Th' is project is estimated to provide more than 64 KW peak production using the water that passes through the Water Treatment Plant for treatment or system flushing. The water is obtained from Icy Creek and is a primary source of the City's drinking water. Up to 30 KW may be needed for the Water Treatment Plant's electrical usage. During times when available water is low, such as during unusually cold winters and near the end of summer, electric production will be lower. An annual average of 280,000 kWh is anticipated, assuming that at least 32 KW of the available power can be produced. Any additional power produced can be delivered to the City's electrical grid. A 1997 DOE report indicated that up to 260 KW could be available with additional water diversions, so there may be potential for continued development. Additional diversions than the water used for drinking water and system flushing would require more for permitting efforts. 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 L • Identify and describe potential barriers The proposed design for Constructing and utilizing the system will use only water that passes through for drinking water and system flushing. The system will be installed within the Water Treatment Plant Building. No permitting requirements are anticipated. 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 new Water Treatment Plant, expected to go online in September 2015, has been designed and constructed with this proposed project in mind. AEA 15003 Page 16 of 27 7/8/14 Renewable Energy Fund Round IXRKA Grant Application - Standard Form i® ENERGY AUTHORITY _ 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 may be a potential that the micro turbines do not produce the amount of electricity as indicated in the conceptual study. The next phases from feasibility through design will provide a more in-depth analysis to ensure the design will deliver the best production from the system. F5.3.2 Environmental Risk Explain whether the following environmental addressed: • Threatened or endangered species • Habitat issues • Wetlands and other protected areas ■ Archaeological and historical resources • Land development constraints and land use issues apply, and if so how they will be � ■ Telecommunications interference + Aviation considerations • Visual, aesthetics impacts • Identify and describe other potential barriers No additional diversions of water are planned for this project than that currently utilized and the micro turbines will be installed inside an existing building. No environmental risk beyond existing operations is anticipated. I. 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. N/A The Water Treatment Plant currently uses electricity from the City's electric distribution system. The proposed project is expected to supplement this electrical usage and may often provide excess that can be distributed back to the City's electric system. AEA 15003 Page 17 of 27 7/8/14 Renewable Energy Fund Round IX GOOD Grant Application - Standard Form ®GINNED ENERGY AUTHORITY Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other N/A ii. Rated capacity of generators/boilers/other N/A iii. Generator/boilers/other type N/A iv. Age of generators/boilers/other N/A v. Efficiency of generators/boilers/other N/A 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 N/A ii. Annual O&M cost for non -labor N/A 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] N/A ii. Fuel usage Diesel [gal] N/A Other iii. Peak Load N/A iv. Average Load N/A v. Minimum Load N/A vi. Efficiency N/A vii. Future trends N/A d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu]: Approximately 8000 gallons is anticipated with the new Water Treatment Plant ii. Electricity [kWh]: Approximately 105,000 kWh is anticipated with new Water Treatment Plant 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 AEA 15003 Page 18 of 27 7/8/14 Renewable Energy Fund Round IXGOOD Grant Application - Standard Form ©® ENERGY AUTHORfTY 5.4.2 Future Trends Describe the anticipated i demand in the community over the life of the project. Future trends indicate about 1.5% annual growth. Water production is expected to increase proportionately with the annual growth, which will result in a higher energy demand for water treatment. The amount of electrical production required by the City Powerhouse is expected to increase significantly as more industrial users begin converting their self -generation systems to backup power and rely more on the City's more efficient generators. However, total energy demand, which includes industries with self -generation, is expected to follow the 1.5% annual growth trend. 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 LLmpact would be for both pre and post PCE. The impact on electric rates including PCE is expected to be less than 0.5%; the overall City power production may decrease by less than 0.5%. However, electric requirements for water production at the new Water Treatment Plant, additional 2 percent rate increase to water utility customers. 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 that is, fuel use for with the increased it may prevent an The City's Water Utility plans to install micro turbines to convert water flow and pressure from the Icy Creek water supply reservoir to produce at least 64 KW of peak energy and 32 KW average. Annual generation is estimated at 280,000 kWh. Approximately 105,000 kWh is expected to be used by the new Water Treatment Plant annually. The micro turbines will be installed inline to the Water Treatment process, and most of integration challenges may be related to SCADA development. The Water Treatment Plant will remain connected to the City electrical grid to use City provided electricity during low flow periods and may produce an excess during high flow periods. Excess energy produced beyond what the Water Treatment Plant uses will be sent directly into the City's electric grid, which may decrease fuel usage for generation at the Powerhouse by a little less than 0.5%. AEA 15003 Page 19 of 27 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form idEEIED ENERGY AUTHORTY Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, 64 KW from Hydro Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 280,000 kWh ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood or pellets [cords, green tons, dry tons] iv. Other d) i. Estimate number of hours renewable 0 Hours 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. The metering equipment has not been specified; however, it will be revenue grade. Integrating metering into the SCADA system will assist with the operations reporting requirement. AEA 15003 Page 20 of 27 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form ® ENERGY AUTHORfTY -;- 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 htt : 7www. akenergyauthorit .or /Proram s/Renewable-Ener -Fund/Rounds#roundo. 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. Micro turbine systems typically have an expected life of 50+ years with only minor maintenance required. The proposed project is anticipated to offset diesel fuel used for electric generation by about 17,500 gallons annually and 875,000 gallons over 50 years. At $3.50 per gallon, this is equivalent to about $3,062,500 to produce 14,000,000 kWh over a 50 year period, making the cost offset value approximately equal to $0.22 per kWh. Comparing estimated capital cost ($1,340,000) plus $8,000 estimated annual O&M to 14,000,000 kWh over 50 year, the cost of energy over its expected life is approximately $0.12 per kWh. This would be a substantial savings for the Water Utility that is currently paying about $0.42 per kWh. For Water Utility customers the reduced electrical costs to produce drinking water is equivalent to about $40,000 annually and about $2,000,000 over 50 years. This reduction would be reflected in Water Utility rates. 6.1.2 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant -funded project Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price range- Indicate the proposed rate of return from the grant -funded project. N/A AEA 15003 Page 21 of 27 7/8/14 Renewable Energy Fund Round IX ® _ Grant Application - Standard Form i4MMID ENERGY AUTHORITY 6.1.3 Public Benefit for Projects with Private Sector Sales For projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Lequest for Applications for more information. N/A Renewable enei Estimated sales Revenue for dish Estimated sales Revenue for disl resource availa month ing diesel generation for use at private sector businesses lacing diesel generation for use by the Alaskan public ($} 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 and/or limitations to fund this project with a loan, construction phases, what are your opportunities bonds, or other financing options? If the City is awarded the grant, the source of matching funds for all phases of the project would be the proprietary enterprise funds. These funds could be secured for this project in the FY2017 budget period or secured for FY2016 with Council approval through a budget amendment. The need for a loan to other financing options is not anticipated at this time. The City received an ADEC Municipal Matching Grant and an Alaska Drinking Water Fund Loan for the Water Treatment Plant project. ADEC's funding division indicated that if there are any funds remaining after the final completion of the new Water Treatment Facility, some limited use of the funds could be used for the proposed micro turbine project. The new Water Treatment Facility is still in construction phase and final payments have not been made, so it's uncertain how much of these funds will be available. 6.2.3 Cost Overruns Describe the plan to cover ntial cost increases or shortfalls in funding. Some cost overruns may be covered through a change order within the department. However, cost overruns exceeding $50,000 generally require Council approval through a budget amendment. AEA 15003 Page 22 of 27 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form © ENERGY AUTHORITY f 6.2.4 Subsequent Phases 1 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. After completion of this project, the City plans to consider future options for diverting more water through the micro turbine system. However, additional permitting efforts may be necessary. 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 This project may provide useful data that could promote future development of hydro energy throughout the State. Micro turbines in particular, could be very useful in Alaska's Water Utility industry benefiting many large and remote communities. Virtually any area of a water system that requires pressure reducing valves (PRVs) could utilize micro turbines to convert pressure and flow to electricity. The mountainous terrain throughout Alaska provides vast potential for this technology. AEA 15003 Page 23 of 27 7/8/14 Renewable Energy Fund Round IXGIIIIIIIIIIL) Grant Application - Standard Form ENERGY AUTHORITY SECTION 7 — SUSTAINABILITY Describe your plan for operating the completed project so that it will be sustainable throughout its economic life. Include at a minimum: • Capability of the Applicant to demonstrate the capacity. both administratively and financially. to provide for the long-term operation and maintenance of the proposed project • Is the Applicant current on all loans and required reporting to state and federal agencies? • Likelihood of the resource being available over the life of the project • `Likelihood of a sufficient market for energy produced over the life of the project The City uses an Enterprise Fund and conducts rate studies to ensure that customer rates are sufficient to maintain (and sustain) all of Public Utilities. The City is current on all loans and report requirements. The resource is the City's primary drinking water source that comes from water reservoirs at higher elevations. Availability is ensured while Unalaska continues to get rain and snowfall. Historically, there have been no long-term droughts in Unalaska. As the City continues to grow, future plans are to develop the reservoirs to increase their volume, which will increase availability. Maintaining potable drinking water requires considerable energy under today's regulations. The City's Water Utility will continue to be the main user of the energy produced. SECTION 8 — PROJECT READINESS 4 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 Conceptual design has been completed and is attached. Since there will be no additional water used than that currently processed for drinking water and system flushing, no additional permits are considered necessary at this time. No land access is needed for this project. The City is ready to begin the following proposed phases: 35% Design Final Design Procurement Construction As -built will be provided upon project completion. I AEA 15003 Page 24 of 27 7/8/14 Renewable Energy Fund Round IX OJC Grant Application - Standard Form 400 F--)ENERGY AUTHORITY 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 2015. The attached Council resolution authorizing the City to apply for funding from Alaska Energy Authority shows local support for this project. The resolution was made during a public meeting and there was no opposition to the project. 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 City's Powerhouse received a waste heat to energy grant from Alaska Energy Authority to install ORC units to convert waste heat from generator engines cooling water to electricity. There were unforeseen delays with design. One of the main ORC manufacturers that we were looking at discontinued development of smaller ORC units and other manufacturers did not support seawater cooling systems. The project timelines were extended so that the ORC project could meet deadlines. Reporting has continued on schedule as required. SECTION 11 — LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES In the space below please provide a list additional documents attached to support completion of prior phases. The conceptual study for micro turbines is attached. SECTION 12 — LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below please provide a list of additional information submitted for consideration. AEA 15003 Page 25 of 27 7/8/14 Renewable Energy Fund Round IX Grant Application - Standard Form �GENED ENERGY AUTHORITY SECTION 13 — AUTHORIZED SIGNERS FORM Community/Grantee Name: City of Unalaska Regular Election is held: Authorized Grant Signer(s): Printed Name Dan Winters Tom Cohenour Title Director of Public Utilities Director of Public Works uate: August 24, 2015 Term N/A N/A I authorize the above person(s) to sign Grant Documents: (Must be authorized by the highest ranking organization/commun Printed Name Don Moore Title Interim City Manager Grantee Contact Information: Mailing Address: Phone Number: Fax Number: E-mail Address: Federal Tax ID #: Term N/A Signature lid unici I officia Signature Department of Public Utilities P.O. Box 610 907-581-1260 907-581-2187 dwinters@ci.unalaska.ak.us 92-0036399 Please submit an updated form whenever there is a change to the above information. AEA 15003 Page 26 of 27 7/8/14 Renewable Energy Fund Round IX� Grant Application - Standard Form ®dONEDENERGY AUTHORITY 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 Dan Winters Signature Title I Director of Public Utilities Date d,31 I ( L-.- AEA 15003 Page 27 of 27 7/8/14