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HomeMy WebLinkAboutCity of Scammon Bay AEA 15003 Hydro Grant ApplicationHydro AlaskaEnergyAuthority–AEA15003 RenewableEnergyGrantApplication H CITYOFSCAMMONBAY CityofScammonBay ALASKAENERGYAUTHORITY–AEA15003RENEWABLEENERGY GRANTAPPLICATION APPLICATIONCONTENTS AEAAPPLICATION–SECTION1THROUGH9 AUTHORIZEDSIGNERS–SECTION10 ADDITIONALDOCUMENTATIONANDCE RTIFICATION–SECTION11 RESUMES LETTERSOFSUPPORT GOVERNINGBODYRESOLUTION FEASIBILITYSTUDY Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 1 of 20 7/2/14 Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round VIII of the Renewable Energy Fund. A separate application form is available for projects with a primary purpose of producing heat (see RFA section 1.5). This is the standard form for all other projects, including projects that will produce heat and electricity. An electronic version of the Request for Applications (RFA) and both application forms is available online at: http://www.akenergyauthority.org/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. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 2 of 20 7/2/14 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Scammon Bay Type of Entity: City Fiscal Year End: June 30 every year Tax ID # 92-0086142 Tax Status: For-profit ܆ Non-profit ܈ Government (check one) Date of last financial statement audit: June 2014 Mailing Address: Physical Address: PO Box 90 City Office Scammon Bay, Alaska 99662 Scammon Bay, Alaska 99662 Telephone: Fax: Email: (907) 558-5529 (907) 558-5626 cityofscammon@marayarmiut.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name:Eric Hanssen, P.E. Title: Sr. Engineering Project Manager Mailing Address: Alaska Native Tribal Health Consortium Division of Environmental Health & Engineering Rural Energy Program 3900 Ambassador Drive, Suite 301 Anchorage, Alaska 99507 Telephone: Fax: Email: (907) 729-3620 (907) 729-4090 echanssen@anthc.org 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Suzanne Wolf – Energy Program (907) 729-4065 (907) 729-3571 swolf@anthc.org Heather Dongoski – Grant Specialist (907) 729-3049 (907) 729-3049 hdongoski@anthc.org Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 3 of 20 7/2/14 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/vREFund8.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) Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 4 of 20 7/2/14 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. Scammon Bay Hydroelectric Project 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. 61.843879,-165.581303 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Scammon Bay, 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 Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 5 of 20 7/2/14 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. A run of river hydroelectric project on the hillside creek running through the city of Scammon Bay has been found to be potentially beneficial based on existing knowledge and previous site assessments. In order to secure permitting and allow for a design that maximizes the potential of the resource, three years of stream gauging is required. Additionally, this project will fund survey and 35% design for the Scammon Bay hillside creek run of river hydroelectric project. 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 proposed project will benefit the community by reducing fuel expenses at the power utility by $157,007 per year. 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. $ 305,000 is requested from the Renewable Energy Fund for stream gauging and preliminary design. ANTHC will provide a project management match of $3,050 for a total phase cost of $ 308,050. Ultimately, the overall project including all development and construction is expected to be $ 4,283,056 in 2014 dollars. 2.7 COST AND BENEFIT SUMARY Summarize the grant request and the 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 $ 305,000 2.7.2 Cash match to be provided $ 2.7.3 In-kind match to be provided $ 3,050 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) $ 308,050 Other items for consideration 2.7.6 Other grant applications not yet approved $ 2.7.7 Biomass or Biofuel Inventory on hand $ 2.7.8 Energy efficiency improvements to buildings to be heated (upgraded within the past 5 years or committed prior to proposed project completion) $ Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 6 of 20 7/2/14 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.9 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $ 4,283,056 in 2014 dollars 2.7.10 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects $ TBD 2.7.11 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. $ 157,007 annually 2.7.12 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. $ Provides a greatly improved water supply for the water treatment and distribution system. 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 anticipates project management assistance from AEA or another government entity, state that in this section. Alaska Native Tribal Health Consortium (ANTHC) is a statewide non-profit health services organization, formed by congress in 1997 to assume the roles and duties of the Indian Health Service (IHS) in Alaska. ANTHC is the largest tribal self-governance entity in the United States, with over 1,900 employees and an annual operating budget in excess of $475M. Approximately 31% of this funding is from a compact agreement with IHS. Approximately 25% of the operating revenue originates from other federal and state grants and contracts. ANTHC has a 16-year history of clean audits, conducted by an independent accounting firm in accordance with the Single Audit Act. The Division of Environmental Health & Engineering, Rural Energy Program: Senior Engineering Project Manager Eric Hanssen, P.E., LEED AP has been with ANTHC since 2007 As part of ANTHC’s Rural Energy Initiative, he oversees project development, design, and construction of energy efficiency and renewable energy projects for remote communities across the entire state of Alaska. During his time with ANTHC, Eric has also served as a Project Manager for rural water and wastewater infrastructure projects, as well as a Health Facilities Engineer focused on hospital and clinic construction and renovation projects. Prior to joining ANTHC, Eric served seven years as a civil engineer and officer for the US Air Force in Alaska, Washington DC, Florida, and Iraq. He holds a BS in Environmental Engineering from the US Air Force Academy in Colorado and a Master’s in Environmental Policy and Economics from the University of Maryland, College Park. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 7 of 20 7/2/14 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. The Milestones noted below, are based on a typical construction season. If the project is awarded, before it is executed, updated and realistic milestones will be completed by ANTHC and provided to AEA. Milestones Tasks Start Date End Date Conduct Kickoff Meeting 8/1/2015 8/1/2015 Install Stream Gauging Equipment 9/1/2015 9/1/2018 Surveying and preliminary design 6/1/2016 5/1/2017 Final Project Docmentation 9/1/2018 10/1/2018 Project closeout 12/1/2018 12/1/2018 Project management throughout (ANTHC in-kind) 8/1/2015 12/1/2018 1.) Project Planning 2.) Project Closeout 3.) Project Management and Match Activities 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. ANTHC DEHE provides design and construction services for rural Alaskan communities infrastructure projects and is able to employ either typical contract or force account construction services to complete the project. DEHE has successfully partnered and worked with the on sanitation and health facilities design and construction projects. The ANTHC will administer and be responsible for executing the proposed installation project. ANTHC will enter into a cooperative project agreement (CPA) with the City, to implement the project, if it is awarded. The project manager will be supported by John Warren, P.E, ANTHC design director, Dave Reed, P.E., ANTHC Lead Electrical Engineer and the consulting firm of Hatch Engineering who did the feasibility study, led by Dan Hertrich, P.E. To the extent possible, local labor will be used during construction. ANTHC will use its purchasing and contracting resources for material procurement and delivery. Resumes of potential alternate resources and key personnel are attached to this application. 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. Written project progress reports will be provided to the AEA project manager as required by the grant. Meetings will be conducted by ANTHC, the Village, and AEA to discuss the status of the project. Regular coordination meetings will be held between AEA and ANTHC regarding all projects. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 8 of 20 7/2/14 3.5 Project Risk Discuss potential problems and how you would address them. Potential risks will be evaluated during this phase of the project. Stream gauging will allow engineers to confirm not only the resource and power potential, but also confirm information about the stream which might present risks to construction or operation of a small intake and pipeline. 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 accounting support. The City of Scammon Bay will use the accounting resources of ANTHC. ANTHC’s Division of Environmental Health accounting department is led by the Construction Controller, Diane Chris. The Construction Finance Department is comprised of 10 staff that handle all DEHE’s accounting functions. A Senior Accountant has been designated to support any ANTHC Grant awards including AEA financial reporting. Key Staff resumes are included in this application. ANTHC has a 16-year history of clean audits, conducted by an independent accounting firm in accordance with the Single Audit Act. 3.7 Financial Accounting System Discuss the accounting system that will be used to account for project costs and who will be the primary user of the accounting system. The project finances will be kept in Spectrum a construction job cost accounting software used by ANTHC. The software accounts expenditures by phase code and cost types. Purchasing, contracting and accounting are the primary users of the system with the information always available to the project team. 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. The City of Scammon Bay will enter into a cooperative project agreement (CPA) with ANTHC to implement the project as well as financial management. ANTHC’s cost controls have been implemented to comply with OMB cost control principles and requirements of all state and federal grants. ANTHC has a 16-year history of clean audits, conducted by an independent accounting firm in accordance with the Single Audit Act. ANTHC will provide records and accounting records available to state and federal auditors on request. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 9 of 20 7/2/14 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 the project and the funding request is 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, in 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. Based on a 2014 feasibility assessment by Hatch Engineering, an estimated 39,252 gallons or $157,007 of diesel fuel could be replaced by reducing demand on the City’s diesel power plant. Alternative energy resources in Scammon Bay include wind power and heat recovery off of existing diesel generators. Wind power feasibility studies are also currently under way, Scammon Bay is shown to have a relatively steady availability of wind resources year round. It is possible that hydroelectric power and wind power could both be utilized by the community. Due to the seasonal fluctuations anticipated in hydro electricity production, heat recovery will remain viable in providing heat to local facilities in the winter time. Hydro will never displace 100% of the electrical load, and the hydroelectric plant would experience its annual minimum production during the cold winter months when heat recovery is needed. 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 City of Scammon Bay currently utilizes diesel electric generation for 100% of its electrical needs. The Alaska Village Electrical Cooperative operates the power utility in Scammon Bay. Currently the electricity utility operates the following Diesel generators: #1 Detroit S60K4 1800 363 kW #2 Cummins K19G2 1200 350 kW #3 Cummins QSX15 G9 499 kW 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Average demand in Scammon Bay is 195 kW, with average demands highest in the winter at around 220 kW, and lowers in the summer, at around 165 kW. Peak demand varies, but winter time demands can peak as high as 471 kW, while summer demand peaks around 270 kW. The community utilizes 1,704,597 kWh annually. This data is compiled directly from AVEC utilizing 15 minute data collection intervals for the calendar year 2013. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 10 of 20 7/2/14 4.3 Proposed System Include information necessary to 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 This phase of the project proposes to confirm the findings of the feasibility study and begin the design process. It is assumed that 3 years of stream gauging may be required by AEA although one year of gauging may be adequate for this small hydro facility. The project will also conduct field surveying required for land acquisition and preliminary and final designs. During this phase, basic integration with the diesel plant as well as any wind resources will be addressed. Additional consultation with stakeholders is also to be addressed. Barriers to the project could be the perceived or real loss of use of a portion of the stream from the powerhouse to the intake. However, the feasibility study found no fish impact in this area. Assuming conditions are confirmed, final design funding would be sought to include geotechnical work required for the water intake and final plans and specifications for the penstock and hydroelectric power plant. This project will utilize a run-of-river design. An existing access road to the community water storage tank can be used for construction and access to the intake. A diversion structure will be built that extends from flood water elevation down to bedrock across the creek channel utilizing local materials in the concrete fill that forms the foundation of the structure. A coanda intake with shutoff and bypass gates, domestic supply priority weir, trash rack, and transition structure would be built at an elevation of 550 feet, sourcing water from a .73 square mile watershed. A 16” HDPE penstock would run from the intake, 4,300 feet to the powerhouse. A powerhouse would be built on the edge of town at an elevation of 70 feet. A static head of 480 feet, with hydraulic capacity of 6.0 cfs would provide the resource for electrical generation. The turbine and generator package would be a custom dual nozzle pelton turbine, induction generator, switch gear, control panels, hydraulic power unit, turbine inlet valve, and structural steel equipment mounting frames. Optimum installed capacity for the project would be 188 kW. With a net efficiency of the turbine, generator set of 82%. 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 anticipated powerhouse and penstock location is on land owned by the Askinuk Native Corporation. The City and ANTHC will work with the corporation during the development phase of this project, to have the appropriate easement and access to the land site. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 11 of 20 7/2/14 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 This project is expected to be jurisdictional with respect to Federal Energy Regulatory Commission (FERC) licensing, as Scammon Bay is located within the Yukon Delta National Wildlife Refuge. Transportation and utility systems are allowed within the refuge. This project anticipates a successful application for an exemption as opposed to a FERC license. The diversion structure would likely to be exempt from Alaska Department of Natural resource dam safety program as the impoundment would be very small. Permitting overall would be led by the ADNR water rights application requirements for demonstrating rights to access and establishing water use quantities. If during the course of completing the design and finalization of the project, it is found that additional permits will be needed, ANTHC will ensure that they will be obtained during the construction phase of the project. 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 ANTHC will consider all potential environmental concerns associated with this project. ANTHC has extensive experience using the comprehensive Indian Health Service (IHS) environmental review procedures for conducting environmental analysis of all health and sanitation facilities projects in all stages of development, as outlined in the IHS environmental review Manual issued in January 2007. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 12 of 20 7/2/14 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: Applicant’s 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 project development cost is estimated at $4,283,056, in 2014 dollars. The development portion of the overall project cost is $675,000. This phase is the first part of the design phase and is budgeted at $308,050. Please see the cost estimate in the feasibility study located on page 3 of Appendix B. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for any 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 recording the impacts of AEA projects on the communities they serve.) Operation and maintenance of hydroelectric is generally fairly minimal compared to diesel plants or wind turbines. Costs for operating the final facility will be estimated as a part of this phase. 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 New purchasers have not been identified thus far. However, Scammon Bay has experienced steady growth of residents for the past 20 years and the trend is expected to continue. The growth in demand can be inferred from the growth in diesel consumption of the generation facilities from 80,165 gallons in 2001 to 132,746 gallons in 2011. (Please refer to Table 7 of the feasibility study) Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 13 of 20 7/2/14 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 and provide most recent heating fuel invoice that supports the amount identified in “Project Benefits” subpart b below. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability.:646,537 kWh annually 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 Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other 3 ii. Rated capacity of generators/boilers/other 363 kW, 350 kW, 499 kW iii. Generator/boilers/other type Detroit, Cummins, Cummins iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other 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] 1,704,,597 ii. Fuel usage Diesel [gal] 121,897 Other iii. Peak Load 471 kW iv. Average Load 195 kW v. Minimum Load 157 kW vi. Efficiency 82% vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 1 TheRailbeltgrid connectsallcustomersofChugachElectricAssociation ,HomerElectricAssoci ation,GoldenValleyElectric Association,theCityofSewardElectricDepartment,Matanuska ElectricAssociationandAnchorageMunicipalLightandPower. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 14 of 20 7/2/14 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] 188 kW b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 646,537 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 $ 3,608,056 b) Development cost $ 675,000 ($308,050 this phase) c) Annual O&M cost of new system To be determined in this phase. d) Annual fuel cost Project Benefits a) Amount of fuel displaced for i. Electricity 39,252 ii. Heat iii. Transportation b) Current price of displaced fuel $ 4.00 c) Other economic benefits d) Alaska public benefits Improved public water supply Heat Purchase/Sales Price a) Price for heat purchase/sale Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.34 per modeling in the feasibility study. Payback (years) 27 years simple payback Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 15 of 20 7/2/14 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. The project should bring down costs of delivered power, particularly to non PCE eligible commercial customers. Displacing fuel for diesel electrical generation will also benefit the PCE fund by reducing the necessity of the subsidy. 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 annual projected diesel fuel to be displaced is estimated at 39,252 gallons per year. At the current rate paid for fuel, this amounts to an annual savings of $ 157, 007. 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) TBD Estimated sales (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) Estimated sales (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 16 of 20 7/2/14 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 City employees will conduct periodic maintenance such as cleaning intake screens, monitoring water levels and production numbers, troubleshooting reported problems etc. Specialized contractors will be engaged when specialty work is required on the actual turbine. Project constructed infrastructure maintenance will be financed out of electrical rate collections from existing and future customers in Scammon Bay. Rates should eventually decrease from the increased hydroelectric production. Integration of existing diesel generation will need to be appropriately controlled to ensure proper switch gear operation and to minimize power distribution disruptions. 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. A feasibility study was conducted in the summer of 2014 and is attached. The study indicated a very favorable project. This is the next recommended phase of hydroelectric development. The team of the City of Scammon Bay and ANTHC has done numerous cooperative projects for sanitation infrastructure together using grant funding from a variety of federal and state organizations. ANTHC has maintained a robust operating budget for all four divisions and operates dozens of programs and projects. ANTHC receives funding from numerous well-recognized sources; this demonstrates their capacity to manage this grant. Funders include the United States Environmental Protection Agency, United States Department of Agriculture, Indian Health Service, Denali Commission, Centers for Disease Control, Department of Energy, Department of Health & Human Services, Department of Commerce, Fred Hutchinson Cancer Research Center, Mayo Clinic, National Native American AIDS Prevention Center, Rasmuson and Robert Wood Johnson Foundations, State of Alaska, University of Washington, and others. 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 The City of Scammon Bay is submitting the grant application. ANTHC has provided match for the project as well as a letter of support. Alaska Village Electric Cooperative, Inc. (AVEC) and Alaska Rural Utility Collaborative (ARUC) have also provided letters of support to this project. There is no known opposition to this project. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 17 of 20 7/2/14 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 cost estimates presented in the table below represent the anticipated costs of the proposed system, taking into account recent design and construction costs of similar projects. Large financial risks are associated with construction work in rural Alaska. Expenses for potential changes in site conditions, unknown or unforeseen issues, and logistics have been incorporated into these costs. ANTHC’s match may actually work out to be much higher than shown, as this work may be performed at ANTHC’s billing rate and may exceed the hours anticipated. Any excess time/value of the project management in-kind match does not replace other financial cost elements of this project. The anticipated dates of completion are assumed based on the likelihood of funding, other ongoing work in the city, and other heat recovery work going on around the state. 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. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 18 of 20 7/2/14 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. PRE-DESIGN PHASE Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching 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. ) Project Management Throughout $3,050 In-kind 1% ANTHC project/program management $3,050 Conduct Kickoff Meeting 8/1/2015 $4,000 $4,000 Stream Gauging 9/1/2018 $175,000 $175,000 Surveying and land 4/1/2017 $30,000 $30,000 Engineering 10/1/2018 $96,000 $96,000 TOTALS $305,000 $3,050 $308,050 Budget Categories: Direct Labor & Benefits $0 Travel & Per Diem $0 Equipment Materials & Supplies Contractual Services * $305,000 $3,050 $308,050 Construction Services Other TOTALS $305,000 $3,050 $308,050 City of Scammon Bay LETTERSOFSUPPORT City of Scammon Bay GOVERNERINGBODY RESOLUTION