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HomeMy WebLinkAboutREFAppRD8CityofNoorvikSolarPVRenewable 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. AEA 15003 Page 1 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 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 2 of 41 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) City of Noorvik Type of Entity: Local Government Fiscal Year End: June 30th Tax ID # 92-0047923 Tax Status: ☐ For-profit ☐ Non-profit ☒ Government (check one) Date of last financial statement audit: Mailing Address: Physical Address: P.O. Box 146 20 Fireweed Drive Noorvik, AK 99763 Noorvik, AK 99763 Telephone: Fax: Email: 907-636-2100 907-636-2135 CityofNoorvik@gmail.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Title: Rogers Brown City Administrator Mailing Address: P.O. Box 146 Noorvik, AK 99763 Telephone: Fax: Email: 907-636-2100 907-636-2135 cityofnoorvik@gmail.com 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Colleen Hoffman 907-636-2144 907-636-2284 tribemanager@noorvik.org Katherine Keith 907-412-2982 907-771-9752 katherine@akremotesolutions.com AEA 15003 Page 3 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 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 ☒ 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) AEA 15003 Page 4 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 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. City of Noorvik Solar-PV 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. City of Noorvik Building: 66.832010, -161.047705 Noorvik IRA Council Building: 66.827226, -161.037799 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Noorvik, 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 AEA 15003 Page 5 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. With Round VIII AEA Renewable Energy funding, the City of Noorvik would install a 10kW solar photovoltaic array on the City building as well as install another 10kW solar photovoltaic array on the Noorvik IRA Council building. The anticipated annual generation, according to the new version of the PVWatts Calculator, will be approximately 8,982 kWh/building for a total of 17,964 kWh for both the City and IRA buildings, for an annual average of 2.85 kWh/m2/day per building. That translates into a total of $11,742 electrical savings per year for the City and IRA combined at an electrical rate of $.65/kWh. 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.) The City of Noorvik Solar-PV project would lower energy costs, which in turn reduces operating expenses for both the City and IRA. This reduction in overhead expenses would allow both entities to budget more in the way of services to the community. 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. Two (2) 10kW solar-PV systems installed in Noorvik, Alaska is estimated to cost $165,000. The City of Noorvik is requesting $164,000 from the Renewable Energy Fund Round 8, with $1,000 of in-kind labor provided by the City. 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 $ 165,000 2.7.2 Cash match to be provided $ 2.7.3 In-kind match to be provided $ 1,000 2.7.4 Other grant funds to be provided $ 2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $ 164,000 Other items for consideration AEA 15003 Page 6 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 2.7.6 Other grant applications not yet approved $ 0 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. $ 165,000 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects $ 0 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. $ 11,676.60/year 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. $ 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. The City of Noorvik will hire Remote Solutions, LLC who shall provide complete turnkey services, which include: development, design, procurement of equipment, installation, project management, commissioning, and reporting services. Please see Remote Solutions Core Services document and resumes in Appendix B. AEA 15003 Page 7 of 41 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/Resolutions of Building Use for PV Install Determine, File and Obtain Needed Permits & Resolutions Sep 2015 Oct 2015 Final System Design Approval of Final System Design Sep 2015 Dec 2015 Equipment Vendor Selection & Award Solicit Equipment Vendors for Equipment Pricing, Selection and Award Jan 2016 Feb 2016 Pre-Construction Procurement and Delivery of Materials Feb 2016 Apr 2016 Construction/Integration/Testing Assemble, Install, and Integrate PV Panels and Other Required Equipment May 2016 May 2016 Commissioning Ensure all systems work as designed and Owner Training May 2016 June 2016 Performance/O&M Reporting Provide the Authority with a Performance/O&M Report annually for ten years after Project completion June 2017 June 2027 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. The City of Noorvik will hire Remote Solutions, LLC who shall provide complete turnkey services, which include: development, design, procurement of equipment, installation, project management, commissioning, and reporting services. See Core Services document and primary Project Manager resume in Appendix B. Rogers Brown, City of Noorvik Administrator will also be an integral part of the project team. His resume can be found in Appendix B. Major equipment purchases, such as the solar-PV panels 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 8 of 41 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 the City of Noorvik to ensure consistency with their objectives. This process structure simplifies work by eliminating nonessential tasks, reducing layers of management, and enables the teams to respond quickly in highly uncertain environments. The Remote Solutions teams are self-managing and directly responsible for goal achievement. Remote Solutions revolves around speed, efficiency, and customer satisfaction the primary goal of which is client satisfaction. Remote Solutions will communicate frequently with the City of Noorvik 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 the City 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 the City of Noorvik and AEA. AEA 15003 Page 9 of 41 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 – 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 each Milestone’s 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 - Solar PV is a well-established technology that has proven its success in the widest set of circumstances possible (outer space, marine, residential rooftops, etc.) and requires minimal maintenance. Since there are no moving parts, the biggest issue is inverter replacement. To address this risk, the common 10 year warranty on inverters will be extended to 20 years to better match the life of the PV modules. The City will also utilize an energy performance contract to deliver the project, which will provide guaranteed results and a guaranteed fixed price and guaranteed outcome. This procurement method will limit risk to the City and provide the highest likelihood of executing and completing a successful project, with measurable results to report back to the community and State of Alaska. 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 the City of Noorvik with financial management for the project and the City of Noorvik will manage the project reimbursements and drawdowns, as well as general oversight. Remote Solutions has established and maintains financial procedures and processes for handling all financial aspects of state and federal grants. They will assist the City of Noorvik 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 QuickBooks. Each project that Remote Solutions handles has its own QuickBooks file. The City reports needed grant financial information directly to Remote Solutions on a Microsoft Excel spreadsheet that is set-up to the specifications of the AEA RE fund grant. AEA 15003 Page 10 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form Remote Solutions will assist the City of Noorvik to maintain accurate records, which comply with all laws, regulations, contracts, and grant agreements. 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. The City will report needed grant financial information directly to Remote Solutions on a Microsoft Excel spreadsheet that is set-up to the specifications of the AEA RE fund grant. If Remote Solutions sees an unreasonable cost or request for funding from the City, Remote Solutions will be in contact with the City to get a better explanation of the request before it even reaches the administrators of the AEA RE fund. Remote Solutions will assist the City of Noorvik, as needed, to maintain accurate records, which comply with all laws, regulations, contracts, and grant agreements. 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. The City of Noorvik selected solar-PV for their building and the Noorvik IRA Council building because solar is more scalable resource, allowing them to adjust the size of the system to the average demand of the City and IRA building as well as not to interfere with the existing Alaska Village Electric Cooperative (AVEC) utility system. The anticipated annual generation according to the new version of the PVWatts Calculator will be approximately 8,982 kWh/building for a total of 17,964 kWh for both the City and IRA buildings, for an annual average of 2.85 kWh/m2/day at a standard 20 degree tilt. At 66 degree tilt that increases to 3.05 kWh/m2/day. At 2.85 kWh/m2/day that translates into a $5,871 electrical savings per year for both the City and IRA at an electrical rate of $.65/kWh. AEA 15003 Page 11 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 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. 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%. 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. AEA 15003 Page 12 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 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 project will have little to no impact on the current AVEC diesel powerhouse infrastructure and Noorvik utility system because the size of the project was kept below AVEC’s current directive of <20% renewable energy load on the system. Based on Noorvik’s FY02-12 average load of 229 kW, the proposed 20kW solar-PV system is less than half of the 20% directive, which means it will not impact the existing utility system. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. This project will reduce overhead costs for both the City and the Noorvik IRA Council. 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 • The technology that will be proposed will be the latest in solar-arrays and micro-inverters for the best output. • Optimum installed capacity will be equal to the average current daytime electric usage by the City and IRA buildings. • Anticipated capacity factor is 7% based on performance of existing PV system in Noorvik. • Anticipated annual generation according to the new version of PVWatts Calculator will be approximately 8,982 kWh/building for a total of 17,964 kWh for both the City and IRA buildings. • There are no anticipated barriers. • Integration and delivery methods will be direct co-generation by each individual micro-inverter for high redundancy. AEA 15003 Page 13 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 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. No issues with land ownership as both the City and Noorvik IRA Council own the buildings that the arrays will be installed on. 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 At this time, no known permits are needed. 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 No environmental issues foreseen. AEA 15003 Page 14 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 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 Total anticipated cost for a total of 20kW installed solar-PV panels is: $165,000. 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.) Anticipated O&M costs are minimal and estimated to be approximately $500/year. The City Maintenance personal will oversee the arrays and keep it clean. Electrical consumption checks will be scheduled on an annual basis. 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 This project does not intend to sell power and any excess power that would be generated back to the grid would only be measured. 4.4.4 Project Cost Worksheet AEA 15003 Page 15 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 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. Annual Solar Radiation 2.85 kWh/m2/day based on the newest version of NREL’s PVWatts Calculator (See Appendix C). 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 3 ii. Rated capacity of generators/boilers/other 710kW, 499kW, 363kW iii. Generator/boilers/other type Diesel generators iv. Age of generators/boilers/other 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 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] 1,966,403 kWh (2013) ii. Fuel usage Diesel [gal] 154,088 gal (2013) Other iii. Peak Load 454 kW (FY02-12) iv. Average Load 229 kW (FY02-12) v. Minimum Load 110 kW (FY02-12) vi. Efficiency 12.76 kW/gallon (2013) vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] 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 16 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form iii. Propane [gal or MMBtu] 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] Two (2) 10kW solar-PV arrays b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] Total: 17,964 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 Project Cost a) Total capital cost of new system $165,000 b) Development cost 0 c) Annual O&M cost of new system $360/year for both systems based on AEA’s $.02/kWh. d) Annual fuel cost 0 Project Benefits a) Amount of fuel displaced for i. Electricity 1,408 gallons/year based on 12.76 diesel efficiency ii. Heat iii. Transportation b) Current price of displaced fuel $4.27/gallon = $6,012.16/year c) Other economic benefits Actual economic benefits for the City of Noorvik and the Noorvik IRA Council is equal to the cost of displaced electricity. AEA 15003 Page 17 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 17,964kWh x $.65/kWh (current electrical cost) = $11,676.60/year For a total savings of $291,915 (if the cost/kWh remains the same) over 25 years. d) Alaska public benefits Lower the overhead costs of both the City and IRA, so that more public benefits can be served. Power Purchase/Sales Price a) Price for power purchase/sale Project Analysis a) Basic Economic Analysis Project benefit/cost ratio $291,915/$165,000= 1.77 over 25 years. Payback (years) 14 years of payback if utility rates stay at the $.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. There would be no effect on electrical rates or PCE as the proposed buildings do not qualify for PCE. AEA 15003 Page 18 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 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 • Annual fuel displacement would be 1,408 gallons/year with a total displacement of 35,200 over 25 years. • No anticipated annual revenue • Potential additional annual incentives for the City of Noorvik and the Noorvik IRA Council is equal to the cost of displaced electricity. 17,964kWh x $.65/kWh (current electrical cost) = $11,676.60/year For a total savings of $291,915 (if the cost/kWh remains the same) over 25 years. • The potential additional annual revenue streams to the City and IRA would be the reduction of overhead costs that could be put back into community programs. • A non-economic public benefits to Alaskans over the lifetime of the project would be how solar-PV can be of value in the Alaskan Arctic. 5.1 Public Benefit for Projects with Private Sector Sales Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. Renewable energy resource availability (kWh per month) Estimated sales (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) Estimated sales (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) AEA 15003 Page 19 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 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 The sustainability of the proposed project would depend on the maintenance done on the system. It is estimated the array would have a lifespan of 25+ years. A maintenance log would be used to collect data over the time of the project. Project savings would be reported to AEA, City, IRA, Northwest Arctic Borough and other interested parties. 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. Solar-PV projects are relatively easy to develop and implement, especially on this small of a scale. Working with Remote Solutions on this project gives the City of Noorvik a head start, as they are familiar with these types of projects and working within the region. 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 more letters. AEA 15003 Page 20 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 21 of 41 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 The estimated cost to procure and install two (2) 10kW solar-PV arrays is $165,000 and the City of Noorvik is requesting $164,000 from the AEA Renewable Energy Fund. A total of $1,000 in-kind services will be donated by the City and/or Remote Solutions. The greatest value of this project is the reduction in overhead expenses, so that direct services back to the community can increase from both the City and IRA. 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. No special metering equipment needed, only keeping track of electrical consumption by month/year from utility bills and comparing with before solar-PV install and after. AEA 15003 Page 22 of 41 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. ) $ $ $ $ $ $ 1. Contract with Partners August 2015 $ $ 500 In-Kind $ 500 2. Permit Applications/Resoluti ons October 2015 $ $ 500 In-Kind $ 500 3. Final System Design December 2015 $ 15,000 $ $ 15,000 4. Equipment Vendor Selection & Award February 2016 $ $ $ 5. Procurement and Delivery of Supplies April 2016 $ 130,000 $ $130,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ 1,000 In-Kind $ 1,000 Travel & Per Diem $ $ $ Equipment $130,000 $ $130,000 Materials & Supplies $ $ $ Contractual Services $ 15,000 $ $ Construction Services $ $ $ 15,000 Other $ $ $ TOTALS $ $ $146,000 AEA 15003 Page 23 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 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. ) $ $ $ $ $ $ 6. Construction/Integrati on/Testing $ 10,000 $ $ 7. Commissioning $ 4,000 $ $ 8. Performance Reporting and O&M for 10 years $ 5,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ 5,000 $ $ 5,000 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ 4,000 $ $ 4,000 Construction Services $ 10,000 $ $10,000 Other $ $ $ TOTALS $ $ $19,000 AEA 15003 Page 24 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 25 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form SECTION 11 – 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 8. 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 AEA 15003 Page 26 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form Appendix A: Resolutions & Letters of Support AEA 15003 Page 27 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 28 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 29 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form Appendix C: Additional Information AEA 15003 Page 40 of 41 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 41 of 41 7/2/14