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HomeMy WebLinkAboutREFAppRD8NATEOWindAssessmentIntertieStudyFINALRenewable Energy Fund Round VIII Grant Application - Standard Form 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/REFund8.html. • 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 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. • 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. • In the sections below, please enter responses in the spaces provided, often under the section heading. 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. • In accordance with 333 (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 is 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. AEA 15003 Page 1 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Northwest Alaska Tribal Energy Organization (NATEO) Type of Entity: Non-profit Fiscal Year End: June 30th Tax ID # 47-1892530 Tax Status: ☐ For-profit ☒ Non-profit ☐ Government (check one) Date of last financial statement audit: Mailing Address: Physical Address: P.O. Box 831 241 5th Avenue Kotzebue, Alaska 99572 Kotzebue, Alaska 99752 Telephone: Fax: Email: 907-412-2882 1-907-771-9752 katherine@akremotesolutions.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Title: Katherine Keith Project Manager Mailing Address: P.O. Box 831 Kotzebue, AK 99572 Telephone: Fax: Email: 907-412-2882 1-907-771-9752 katherine@akremotesolutions.com 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Bobby Wells 907-636-2100 907-636-2135 cityofnoorvik@gmail.com Raven Sheldon 907-484-2132 907-484-2209 City_of_Selawik@hotmail.com Dale Stotts 907-475-2136 907-444-2841 tribedirector@katyaaq.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) ☐ 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 AEA 15003 Page 2 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form ☒ 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/REFund8.html. (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) SECTION 2 – PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Northwest Alaska Wind Resource Assessment and Intertie Study 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project – Latitude and longitude, 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. The location of the wind resource study is Hotham Ridge (between Noorvik and Selawik) – 66.8, -160.8 Kiana, Alaska: 66.975000, -160.422780 Noorvik, Alaska: 66.838330, -161.032780 Selawik, Alaska: 66.603890, -160.006940 AEA 15003 Page 3 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Kiana, Alaska Noorvik, Alaska Selawik, Alaska 2.3 PROJECT TYPE Put X in boxes 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 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. The Northwest Alaska Tribal Energy Organization (NATEO) is a non-profit coalition that was formed between the City and Tribal Governments of Kiana, Noorvik and Selawik for the purpose of making living in rural Northwest Alaska self-sustaining and cost effective. NATEO’s mission is to work together as one on energy resource development funding; advise, assist and support each member in their quest for energy resource development in their community; facilitate communication between all member communities regarding energy resource development; cooperate and develop meaningful relationships with member and non-member tribal governments, intertribal organizations, government agencies, private organizations, and others to accomplish common purposes; coordinate with local and regional councils on energy resource plans and budgets for region-wide energy issues; assess not only local tribal needs, but all tribal needs of the region; and to secure financial and other resources to accomplish the foregoing purposes and such other related purposes as this organization may identify. Therefore, NATEO supports AVEC’s idea of an intertie between Noorvik, Kiana, and Selawik. The construction of an intertie would reduce the cost of energy in the community with the cheapest fuel by equalizing the cost of diesel to that of the community, in this case, Noorvik. Additionally, an intertie AEA 15003 Page 4 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form would provide generation support and increased reliability for the overall electrical system, in turn reducing operating costs thus reducing energy costs to all the communities. The construction of an intertie would also allow for installation of distributed generation at the most ideal location, Hotham Peak which, through observations and modeling, has a superb wind resource. A greater wind resource provides the opportunity for installation of larger scale wind turbines. According to modeling completed in the 2012 Noorvik Wind-Diesel Conceptual Draft Report, the most ideal location for a larger turbine would be on the southwest slope of Hotham Ridge between Noorvik and Selawik. See Figure 1. But, before the discussion of an Intertie can move forward the actual wind resource needs to be monitored at Hotham Ridge. 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, local jobs created, etc.) 1. FINANCIAL BENEFITS - Reduced Cost of Electricity - AVEC customers in Noorvik, Kiana, and Selawik will see reduced electricity costs through the construction of an intertie in addition to the installation of a 900 kW EWT wind turbine to reduce diesel fuel consumption. With only one prime power generator along the intertie to service, repair, and replace, operations and maintenance (O&M) costs will be reduced in all communities. A preliminary HOMER analysis has been done; the analysis indicated that significant fuel savings can be achieved. 2. PUBLIC BENEFITS - Increased Power Reliability - Reduced Pollution and Greenhouse Gas Emissions - reduced air, noise and ground pollution from the diesel exhaust, power plant and tank farm fuel system, respectively. The AEA 15003 Page 5 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form potential of reducing pollution through wind energy is an appealing option. 3. ALASKAN BENEFITS 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. 4. ENVIRONMENTAL BENEFITS - Reduced potential for fuel spills or contamination - during transport, storage or use (thus protecting vital water and subsistence food sources); - Improved air quality - Decreased contribution to global climate change - from fossil fuel use - Decreased coastal erosion - due to climate change. This project has two areas of concentration: Wind Generation - the work will involve obtaining a letter of non-objection for placement of the met tower and geotechnical fieldwork; permitting, purchasing, transporting, and installing a met tower; studying the wind resource for one year; and conducting a geotechnical investigation to determine the soil conditions and needed engineering at the site. A conceptual design will be created based on the outcome of the met tower recordings and geotechnical investigation. Initial Intertie Investigation - the Intertie between Noorvik, Kiana, and Selawik will be evaluated by looking at land use, permitting, and cost. AC and DC power transmission systems will be considered for cost estimating and O&M purposes. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. This work is estimated to cost $230,000 and NATEO requests the full amount of $230,000 from AEA RE fund. A detail of the grant budget follows. To date, NATEO has received no funds for this project, but has applied for $2,500,000 through the Department of Interior, Bureau of Indian Affairs, Grant Proposal to Assess, Evaluate, and Promote Development of Tribal Energy and Mineral Resources (BIA-14-FA001) in August 2014. If the wind resource proves to be suitable, NATEO would seek funding to construct turbines on Hotham Peak. AEA 15003 Page 6 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 2.7 COST AND BENEFIT SUMMARY Include a summary of grant request and your project’s total costs and benefits below. Costs for the Current Phase Covered by this Grant (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $ 230,000 2.7.2 Cash match to be provided $ 0 2.7.3 In-kind match to be provided $ 0 2.7.4 Other grant funds to be provided $ 0 2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $230,000 Other items for consideration 2.7.6 Other grant applications not yet approved $ 2,500,000 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $25,000,000 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects $ 2.7.9 Estimated Direct Financial Benefit (Savings) The economic model used by AEA is available at www.akenergyauthority.org/REFund8.html. This economic model may be used by applicants but is not required. Other economic models developed by the applicant may be used, however the final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. $ Direct Financial Benefit will be determined through the Reconnaissance Study. 2.7.10 Other Public Benefit If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in Section 5 below. $ AEA 15003 Page 7 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). 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. NATEO will hire Remote Solutions, LLC who shall provide complete turnkey services, which include: development, design, permitting, procurement of equipment, installation, project management, report writing and reporting services. Please see Remote Solutions Core Services document and resumes in Appendix B. AEA 15003 Page 8 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 3.2 Project Schedule and Milestones Please fill out the schedule below. 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. Please fill out form provided below. You may add additional rows as needed. Milestones Tasks Start Date End Date Contract with Partners Contract with Remote Solutions, LLC Aug 2015 Aug 2015 Permit Applications/Additional Resolutions for Met Tower Install Determine, File and Obtain Needed Permits & Resolutions Sept 2015 Oct 2015 Met tower Procurement & Install Purchase, ship and Install Met Towers Oct 2015 May 2016 Detailed Wind Resource Analysis Collect Wind Data Nov 2015 May 2017 Identification of Land and Regulatory Issues Determine Land Use and Issues for Intertie Study Nov 2015 June 2017 Permitting and Environmental Analysis Determine Permitting and Environmental for Intertie Study Nov 2015 June 2017 Analysis of Existing and Future Energy Costs/Markets Detailed Analysis of Existing and Future Energy Costs/Markets for Intertie Study Nov 2015 June 2017 Conceptual Business and Operating Plans Design Conceptual Business and Operating Plans for Intertie Study Nov 2015 June 2017 Assessment of Alternatives Detailed Assessment of Alternatives for Intertie Study Nov 2015 June 2017 Economic and Financial Analysis Detailed Economic and Financial Analysis for the Intertie Study. Nov 2015 June 2017 Intertie Conceptual Design Analysis and Cost Estimate Detailed Intertie Conceptual Design Analysis and Cost Estimate for Intertie Study Nov 2015 June 2017 Grant Final Report Final Wind Resource and Intertie Study to AEA Nov 2015 June 2017 Met Tower Demob Demob of Met Tower June 2017 July 2017 Complete Project Close-Out Close-Out of Project with AEA Aug 2017 Aug 2017 3.3 Project Resources Describe the personnel, contractors, personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. NATEO will hire Remote Solutions, LLC who shall provide complete turnkey services, which include: development, design, permitting, procurement of equipment, installation, project management, report writing and reporting services. See Core Services document and primary Project Manager resume in Appendix B. Major equipment purchases, such as the met tower will be procured by soliciting for equipment bids from reputable vendors both within the State of Alaska and the lower 48 to get the best equipment for the cost. AEA 15003 Page 9 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Please provide an alternative contact person and their contact information. Remote Solutions is organized by forming multidisciplinary teams around core processes such as project development/design/management, installation/commissioning, and reporting. This process based structure emphasizes lateral rather than vertical relationships. There is a single hierarchical level with John Baker as the owning member of the LLC. This enables Remote Solutions to focus most of their resources on serving their clients. The key to success is that each process has clear performance goals that drive task execution. This process will be defined early on with NATEO to ensure consistency with their objectives. This process structure simplifies work by eliminating nonessential tasks and reducing layers of management. The Remote Solutions teams are self-managing and directly responsible for goal achievement. The primary goal of the Remote Solutions team is client satisfaction. NATEO will have the opportunity early on to define expectations that will chart the progress of the project. Remote Solutions revolves around speed, efficiency, and customer satisfaction. Their structure enables the teams to respond quickly in highly uncertain environments. Remote Solutions will communicate frequently with the NATEO through email, phone, and in person meetings. The benefit of selecting a contractor within the region is the ability to have in person meetings, as needed. Remote Solutions uses project management software which can provide up to date information on the schedule, budget, and task progress. Remote Solutions will also provide project updates with every monthly invoice to help keep NATEO informed. Katherine Keith will be the primary contact for overall project direction and administration. Katherine is located in Kotzebue and will be able to efficiently meet the needs of both NATEO and AEA. AEA 15003 Page 10 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 3.5 Project Risk Discuss potential problems and how you would address them. #1 – Logistics/Weather - Project delays due to weather, shipping delays, etc. are always a concern with projects in rural Alaska. Therefore, extra time has already been built into the install of the Met Towers and collection of Met Tower data start and end date and hiring a local regional contractor should eliminate those risks. Remote Solutions, the chosen contractor understands the challenges of working in rural Alaska and has the needed experience. #2 – Site Control/Access and Permitting - In the NANA Region Strategic Energy Plan community members expressed support for investigating the potential for wind power. It is expected that the community would support erection of the met tower. Consultation with the U.S. Fish and Wildlife Service would be conducted to comply with the Endangered Species Act. NATEO/Remote Solutions would work openly with the agency and conduct studies as appropriate. 3.6 Project Accountant(s) Tell us who will be performing the accounting of this Project for the Grantee and include contact information, a resume and references for the project accountant(s). 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 project management support. Remote Solutions will support NATEO with financial management for the project as well as manage the project reimbursements, drawdowns, and general project oversight. Remote Solutions has established and maintains financial procedures and processes for handling all financial aspects of state and federal grants. They will assist NATEO to maintain accurate systems, which comply with all laws, regulations, contracts, and grant agreements. Please see Appendix B for Remote Solutions information and resumes. 3.7 Financial Accounting System Discuss the accounting system that will be used to account for project costs and whom will be the primary user of the accounting system. Remote Solutions has established and maintains financial procedures and processes for handling all financial aspects of state and federal grants using Intuit QuickBooks. Each project that Remote Solutions handles has its own QuickBooks file, set-up to the specifications of the AEA RE fund grant. 3.8 Financial Management Controls Discuss 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. For this project, a minimum of three equipment quotes will be obtained to make sure that the cost of the equipment is fair and reasonable. This same method will be followed if and when Remote Solutions needs to hire any subcontractors to fulfill portions of the project. AEA 15003 Page 11 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form SECTION 4 – PROJECT DESCRIPTION AND TASKS The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. 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 satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss 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. There are numerous ways to extrapolate the expected annual average wind speed at the Hotham Peak site. One method is through utilizing the high resolution wind map produced by AWS True Wind. Figure 2 reveals that the southwestern slope of the Ridge is a Class 3 wind resource. The area also benefits from two wind studies completed in Noorvik. The wind data from these studies can be scaled up to a Class 3 mean annual wind speed of 6.4 m/s. This data can be used to predict the turbine output of a wind turbine located on that ridge. It should be noted that any estimations of wind speed is arbitrary and is merely an 'educated guess' based on modeling. Figure 2: Wind Resource Map on Hotham Peak WP Class 1 WP Class 3 WP Class 2 AEA 15003 Page 12 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form By zooming in at the Hotham Peak site, Figure 3, it is apparent that there exists a large area to consider for turbine placement. Further modeling and analysis, including installation of a met tower, would provide needed insight on site determination. Figure 3: Wind Speed Projections for Hotham Peak Previous WAsP studies, completed by Doug Vaught of V3 Energy, confirm the higher quality wind resource on the ridge. A study is underway to model the resource based upon the two previous met tower installations. Preliminary results from this study show an annual wind speed of 6.98 meters per second (at 33.5 meters) and a power density of 663 watts per meters squared. With WAsP having more accurate data for analysis, this wind speed is used for the HOMER calculations. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. This study will evaluate electrically connecting the three communities of Noorvik, Kiana, and Selawlk. In order to provide some detail on system infrastructure, Noorvik (being physically closer to Hotham Peak) will be examined in more detail. The Alaska Village Electric Cooperative currently provides diesel generated power to the community of Noorvik, with a total generating capacity of 1,572-kW. The utility generated 1,966,403 kWh total in Noorvik during fiscal year 2013. For this electrical energy the community imported 154,088 gallons of diesel fuel. Over the past five years, while there are years with both growth and decline in electricity use, there has been an approximate growth rate of 4%. AEA 15003 Page 13 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form Power Plant Engine Mfg. Engine Model Generator Generator Model Year of Mfg. Set Rating Detroit Diesel/MTU 12V2000 Kohler 750ROZD4 2001 710 Cummins KTA19-G4 Martin Machinery MCD-500 1998 499 Detroit Diesel Series 60 Stamford HC1504C1 ? 363 The Noorvik power plant is also equipped with an individual remote radiator for each generator set, which provides redundant cooling capacity along with a heat exchanger and hydronic heating system for transfer of heat to the plant structures. The Noorvik tank farm has sufficient, useable fuel storage capacity to meet the annual requirements for the next two-year period. The major system improvements completed for the Noorvik generation and distribution system included converting the generating voltage from 208 volt three phase to 480 volt three phase, the installation of a “Used Lubricating Oil” blending and filtering system, the installation of a variable speed drive on two of the remote radiators and the installation of a higher capacity unit. AEA contributed $75,000 toward the cost of installing the high efficiency Detroit Diesel Series 60 and contributed $17,300 toward the cost of installing the “Used Lubricating Oil” blending system. In addition, a Denali Commission funded project to upgrade the fuel storage capacity has been completed. A project to increase the generating capacity has also been completed. The existing switchgear was built by Controlled Power in Washington State and included controls for two generators. Additional controls were added at a later unknown date to be used for the third generator. A Woodward 2301A load sharing speed controller and SPM-A synchronizer has been provided for generator two. Woodward 2301 load sharing speed controllers and SPM-A synchronizers have also been provided for generators one and three. Paralleling is accomplished by manually synchronizing the second generator with the first using synchronizing lights before manually bringing it online. There is currently no automatic capability. Generator selection is done by season, running the larger units in the winter and the smaller unit in the summer. The aggregate diesel efficiency according to PCE records is 12.76 kWh per gallon. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. The communities of Noorvik, Kiana, and Selawik each have a local power plant that is owned and operated by AVEC. Currently, there is no road or electrical infrastructure connecting these three villages. This has led to each community being dependent on the local cost and availability of fuel. In addition, any distributed wind project must be located at or very near the community in order to reduce the necessary cost of a line extension to the potential wind site. In the area of these three communities, Hotham Peak appears to have a valid wind resource which could offset large amounts of fuel if a larger scale wind turbine was installed to capture the wind. However, a large turbine must have a larger load to absorb the generated electricity. Constructing an intertie can create this larger load. One community would maintain the power AEA 15003 Page 14 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form plant, fuel tanks, and integration equipment. The other two communities would maintain a backup power plant system. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The combined electrical loads for all three communities can be calculated using the Alaska Village Load Calculator. According to 2013 PCE data, Selawik has a population of 868 with 36 commercial (non-PCE) users. Kiana has a population of 372 people with 18 commercial consumers and Noorvik has a population of 643 with 19 commercial consumers. This computes to a total consumption of 6,272,160 kWh/year with an average load of 609 kW. The intertie will serve to reduce the cost of electricity to the end users. 4.3 Proposed System Describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 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 • Basic integration concept • Delivery methods There are numerous large scale wind turbines currently being installed in Alaska including the GE 1.5 MW turbine, the 2.05 MW RePower turbine, and the 900 kW EWT turbine (recently installed in Kotzebue, Alaska). In order to create regional economies of scale for maintenance and operation, the EWT 900 kW would be an ideal turbine to consider. A 900 kW turbine, without any curtailment, would produce 3,013282 kWh per year with a 38.2% capacity factor (Figure 4). There would be excess electricity that would need to be taken into consideration, especially during the summer. Figure 4: Wind Power Production (Blue) and lntertie Load (Blue) AEA 15003 Page 15 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form Alternatively, the turbine could be capped to 600 kW to avoid any excess electricity as seen in Figure 5. This would limit the wind power output to 2,419,679 kWh per year having a capacity factor of 30.7%. Figure 5. Wind Power Production 600kW (Green) and Intertie Load (Blue) 4.3.2 Land Ownership 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 final location of the Met Tower, geotechnical work and routing of the intertie will be determined during this study. 4.3.3 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 discuss potential barriers All to be determined during this study, however for Met Tower install the following would be required: U.S. Fish and Wildlife Service - consultation with the U.S. Fish and Wildlife Service, in compliance with the Endangered Species Act, will be required to install the met tower. AVEC will work with the agency to ensure that the requirements of the Act are met, while allowing for the success of the project. U.S. Army Corps of Engineers (USACE) Section 404 (Wetlands) Permit – a U.S. Army Corps of Engineers Wetlands Permit may be needed for the geotechnical work. The Corps has a "Nationwide Permit" for survey work, including geotechnical field work. This permit usually takes no more than three weeks to obtain. Since a Corps' Nationwide Permit exists, a State of Alaska Department of Natural Resources, Division of Coastal and Ocean Management Coastal Project Questionnaire and Enforceable Policies Consistency Determination are not needed. AEA 15003 Page 16 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 4.3.4 Environmental Address 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 discuss other potential barriers Threatened and Endangered Species - the purpose of this work is to gather background information to plan for future wind turbines and an intertie. A met tower will be installed, and geotechnical field work will be completed. As stated above, compliance with the Endangered Species Act will be needed. Land Development Constraints - NATEO will obtain permission to place the met tower and conduct geotechnical fieldwork from the land owner as a part of this project. The communities have supported this project in the past, and it’s not expected that a right of entry will problematic. Further work to obtain a long-term lease will be needed if the study finds that the wind turbines are feasible. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system An economic analysis is premature at this point in the assessment. However, one (1) EWT would contribute 38% of the overall load of all three communities. This equates to a diesel fuel offset of 178,130 gallons per year. NATEO plans to conduct a Wind Resource Assessment, Feasibility Analysis, and Conceptual Design to assess the possibility of using wind power in the area of Hotham Peak via transmission/intertie line between Noorvik, Kiana, and Selawik. This work will cost $230,000 and NATEO requests $230,000 from AEA RE Fund. AEA 15003 Page 17 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form If the wind resource and intertie prove suitable, the next phase of this project would be Final Design and Permitting. Although it is difficult to determine without an assessment of the resource what type, size, and number of turbines would be needed, NATEO expects that Final Design and Permitting would cost $2,500,000. It is possible that the funding for this work could come from the AEA Renewable Energy Program, the Denali Commission, a USDA Rural Utility Service program, or other grant program. NATEO has applied for $2,500,000 grant through the Department of Interior, Bureau of Indian Affairs, Grant Proposal to Assess, Evaluate, and Promote Development of Tribal Energy and Mineral Resource (BIA-14-FA001) in August 2014. The final phase of this project would be Construction and Commissioning. NATEO estimates that this phase could cost $25,000,000. It is possible that the funding for this work could come from the AEA Renewable Energy Program, the Denali Commission, AIDEA, a USDA Rural Utility Service program, or other grant program. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) The Met Tower will require monthly monitoring and data management. It is expected that this will cost $5,000.The cost will be funded by this grant award. 4.4.3 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 Identification of potential power buyer(s)/customer(s). AVEC, the existing electric utility serving Noorvik, Kiana, and Selawik, is a member-owned cooperative electric utility and typically owns and maintains the generation, fuel storage, and distribution facilities in the villages it serves. In Noorvik, Kiana, and Selawik, AVEC has 578 consumers (177, 151, and 250 respectively) with a health clinic, city office, school, and water treatment plant/washeteria in each community which purchase power from AVEC. At this point in project development, the potential power price and rate of return on the project is unknown. Potential power purchase/sales price/proposed rate of return from the grant-funded project at this point in project development and the potential power price and rate of return on the project is unknown. Work done under this grant would determine this. AEA 15003 Page 18 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please fill out the form provided below. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 3,013,282 kWh/year with one (1) EWT wind turbine Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank) i. Number of generators/boilers/other Noorvik - 3 ii. Rated capacity of generators/boilers/other Noorvik - 710kW, 499kW, 363kW iii. Generator/boilers/other type Diesel generators in all communities iv. Age of generators/boilers/other Noorvik - 2001, 1998, ? v. Efficiency of generators/boilers/other 12.76 kWh/gallon (2013) b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non-labor c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] Noorvik, Kiana, Selawik – 1,966,403/1,542,820/2,891,097 = 6,400,320 kWh generated ii. Fuel usage Diesel [gal] Noorvik, Kiana, Selawik – 154,088/112,832/216,918 = 483,838 gal used Other iii. Peak Load 1 MW estimated iv. Average Load 609 kWh v. Minimum Load vi. Efficiency 13.25 kWh/gal average for the 3 communities 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] 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 19 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 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] 900 kW wind b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 3,013,282 kWh/year ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood or pellets [cords, green tons, dry tons] iv. Other Project Cost a) Total capital cost of new system $25,000,000 b) Development cost c) Annual O&M cost of new system TBD d) Annual fuel cost Project Benefits a) Amount of fuel displaced for i. Electricity Approximately 201,000 gallons/year ii. Heat iii. Transportation b) Current price of displaced fuel Average of 3 communities - $4.04/gal (2013) c) Other economic benefits 3,013,282 kWh/year x $.65 (current electrical cost) = $1,958,633/year savings For a total savings of $39,172,666 (if the cost/kWh remains the same) over 20 years. d) Alaska public benefits AEA 15003 Page 20 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form Power Purchase/Sales Price a) Price for power purchase/sale TBD Project Analysis a) Basic Economic Analysis Project benefit/cost ratio $39,172,666/25,000,000 = 1.57 over 20 years Payback (years) Approx. 13 years if utility rates stay at $.65/kWh 4.4.5 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area. If the is for a PCE eligible utility please discuss what the expected impact would be for both pre and post PCE. Overtime, PCE and non-PCE consumers should see their rates stabilize or decrease. SECTION 5– PROJECT BENEFIT Explain the economic and public 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: • Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project The potential annual fuel displacement for electricity is projected to be 4,060,303 gallons over a 20- year project lifetime which equates to $16,403,624 over 20 years based on $4.04 per gallon. There is significant excess electricity in the proposed system which could be used to meet the thermal needs of Noorvik, Kiana, and Selawik. One 900kW EWT will produce 710,300 kWh/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 each community. If all the excess electricity was used for thermal energy, the savings of diesel fuel would be approximately 17,000 gallons per year. Over 20 years the savings would add up to $2,380,000. The total project savings are $39,172,666 over 20 years. With an estimated $25,000,000 capital investment the simple benefit cost ratio would be 1.57. AEA 15003 Page 21 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 5.1 Public Benefit for Projects with Private Sector Sales Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. Renewable energy resource availability (kWh per month) Estimated sales (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) Estimated sales (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: • Proposed business structure(s) and concepts that may be considered. • How you propose to finance the maintenance and operations for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation • Commitment to reporting the savings and benefits Business plan structures and concepts which may be considered: The wind turbines and intertie, if feasible, 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: There are no known operational issues. Operational issues of the proposed turbines and intertie would be determined. Operating costs: Different turbines have different operating costs, however, using AEA's default cost of wind energy, estimated O&M would cost $33,313 (based on $0.0469/kWh for wind energy). Commitment to reporting the savings and benefits: NATEO is fully committed to sharing the savings and benefits accrued from this project with their shareholders, and sharing the project information with AEA. In addition, NATEO acknowledges and agrees that if/when the wind-intertie is constructed, it shall be constructed, owned, and operated for the benefit of the general public and will not deny any person use and/or benefit of project facilities due to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. AEA 15003 Page 22 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. Once funding is known to be secured, NATEO will hire Remote Solutions who would then seek a non-objection letter from NANA to begin the FAA and USFWS permitting process for the Met Tower. Remote Solutions install the Met Tower and complete the geotechnical work once the grant agreement is in place. Met Tower installation and geotechnical work would occur before winter, but has had additional time built-in, in case the narrow fall window is missed. Work that can be completed before the wind study is completed would occur over the winter, including analysis of current cost of energy and future market, and the economic and financial analyses. Once the wind study is completed, the conceptual design and permitting would occur. No other grants have been secured by NATEO for this work in the past. SECTION 8 – LOCAL SUPPORT AND OPPOSITION Discuss local support and opposition, known or anticipated, for the project. Include letters of support 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 2, 2014 See Appendix A for additional Resolutions AEA 15003 Page 23 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 24 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 25 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form SECTION 9 – GRANT BUDGET Tell us how much you are seeking in grant funds. Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. 9.1 Funding sources and Financial Commitment Provide a narrative summary regarding funding source and your financial commitment to the project NATEO plans to hire Remote Solutions, who will conduct a wind resource assessment, feasibility analysis, and permitting/conceptual design to assess the possibility of using wind power and an intertie connecting Noorvik, Kiana, and Selawik. This work is estimated to cost $230,000 and NATEO requests the full amount of $230,000 from AEA RE fund. A detail of the grant budget follows. To date, NATEO has received no funds for this project. If the wind resource proves to be suitable, NATEO would seek funding to construct turbines on Hotham Peak. 9.2 Cost Estimate for Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment, and its related use to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. The costs for the anemometer are included in the overall budget. The approximate cost of a 34 meter tower with Iridium enabled data logger is about $10,000 without installation. AEA 15003 Page 26 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 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 and Commissioning). Please use the tables provided below to detail your proposed project’s budget. Be sure to use one table for each phase of your project. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA at 907-771-3031 or by emailing the Grants Administrator, Shawn Calfa, at scalfa@aidea.org. Milestone or Task Anticipated Completion Date 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 Milestone list below. ) $ $ $ Contract with Partners Aug 2015 $ 2,000 $ $ 2,000 Permit Apps/Resolutions for Met Tower Install Oct 2015 $ 2,500 $ $ 2,500 Procure and Install Met Tower Oct 2015- May 2016 $ 24,500 $ $ 24,500 Collect Wind Data Nov 2015- May 2017 $ 5,000 $ $ 5,000 Determine Land Use/Issues for Intertie Study June 2017 $ 8,000 $ $ 8,000 Determine Permitting/Environmental for Intertie Study June 2017 $ 12,500 $ $ 12,500 Detailed Analysis of Existing/Future Energy Costs/Markets June 2017 $ 12,500 $ $ 12,500 Design Conceptual Business/Operating Plans for Intertie Study June 2017 $ 15,000 $ $ 15,000 Detailed Assessment of Alt for Intertie Study June 2017 $ 80,000 $ $ 80,000 Detailed Economic and Financial Analysis for Intertie Study June 2017 $ 15,000 $ $ 15,000 Detailed Intertie Conceptual Design Analysis/Cost Estimate for Intertie Study June 2017 $ 36,000 $ $ 36,000 Final Wind Resource Report and Intertie Study June 2017 $ 12,000 $ $ 12,000 Met Tower Demob Aug 2017 $ 5,000 $ $ 5,000 TOTALS $230,000 $0 $230,000 Budget Categories: Direct Labor & Benefits $ 25,000 $ $ 25,000 Travel & Per Diem $ 10,500 $ $ 10,500 Equipment $ 15,000 $ $ 15,000 Materials & Supplies $ 5,500 $ $ 5,500 Contractual Services $169,000 $ $169,000 Construction Services $0 $ $0 Other $ 5,000 $ $ 5,000 TOTALS $230,000 $ $230,000 AEA 15003 Page 27 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 28 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 29 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form Appendix A: Resolutions & Letters of Support AEA 15003 Page 30 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 31 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 32 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 33 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 34 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 35 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 36 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 37 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 38 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 39 of 48 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 40 of 48 7/2/14