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HomeMy WebLinkAboutAEA Renewable Energy Fund Round VIII - Atqasuk Transmission - signedRenewable Energy Fund Grant Application Atqasuk Transmission Line Design and Permitting Project Round VIII North Slope Borough Project Location: Atqasuk, Alaska. Renewable Energy Fund Round VIII �- ALASKA�.. Grant Application - Standard Form � ENERGY AUTHORFY II SECTION 1 — APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) North Slope Borough Type of Entity: _ Fiscal Year End: Government and Electric Utility 06/30/2014 Tax ID #92-0042378 Tax Status: ❑ For -profit ❑ Non-profit ® Government (check one) Date of last financial statement audit: 06/30/2013 - completed 12/19/2013 Mailing Address: Physical Address: PO Box 69 1274 A vik Street Barrow, AK 99723 Barrow, AK 99723 Telephone: Fax: Email. 907-852-0467 907 -852-4145 Timoth .rowe north -go e.or 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Richard San Jose Timothy Rowe Mailing Address: PO Box 69 Barrow, AK 99723 Title: Assistant to Director Grants Administrator Telephone: Fax: Email: (907) 852-0863 (Richard) (907) 852 0251 Richard. saniose_)north-slo e_or ` (907) 852-0467 (Tim) 907 852 4145 Timothy. rowe north-slo _or 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: AEA 15003 Page 2 of 28 7/2/14 Renewable Energy Fund Round VIIImw�. ALAWgAsaxia- Grant Application >lication - Standard Form EEV� ENERGY AUTHORrrY 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 I 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 1 authority is necessary. (Indicate by checking the box) I ® 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 W 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 3 of 28 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 4001E� ENERGY AUTHORrrY 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. Atqasuk Transmission Line Design and Permitting 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. Physical Location: Area of the North Slope between the communities of Atqasuk and Barrow- Atqasuk, AK 70.48122 — 157.42 Barrow, AK 71.291526 — 156.9 2.2.2 Community benefiting — Name(s) of the community or communities that will be the beneficiaries of the project. The City of Atqasuk will be the beneficiary of this project 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type ❑ Wind ■❑ ❑ Hydro, Including Run of River ❑ Biomass or Biofuels (excluding heat -only) Hydrokinetic ❑ Geothermal, Excluding Heat Pumps ® Transmission of Renewable Energy ❑ Solar Photovoltaic ❑ Storage of Renewable ® Other (Describe) Transmission of ❑ Small Natural Gas electricity generated by natural gas in lieu of diesel fuel for both power and heat 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 4 of 28 7/2/14 Renewable Energy Fund Round VIII1 Grant Application - Standard Form ��ENERWAu,}may [ 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the This phase of the Barrow to Atqasuk Transmission Line Project is for final design and permitting required for the construction of the transmission line and home and building conversions to electric space heating. 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 feasibility phase of this project, performed in 2010, shows significant cost savings over the continued use of diesel fuel in Atqasuk. Results of the economic analysis indicate the potential cost savings of $50.7 million over 35 years. • Conversion to a long-term stable priced energy source for the village of Atqasuk. • Increase in power quality and reliability. • Elimination of outsourcing community funds for the importation of power and space heating energy. • Less noise and pollution in the community. • Lower probability of fuel oil and glycol spills in the community. • The project is technically feasible • Has a predictable financial outcomes and public benefit. • Power intertie could be extended to the community of Wainwright in the future. • The project will use fiber optics imbedded in the power line cable to control loads in Atqasuk from Barrow. The fiber optics can also be used to bring broadband capabilities to Atqasuk._ 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. • The North Slope Borough is seeking $2,017,818from AEA Renewable Energy Fund for the design and permitting. • The North Slope Borough will participate with resources valued at $201,782. 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 $ 2,017,818 2.7.2 Cash match to be provided $ 201,782 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) $ 2,219,600 Other items for consideration 2.7.6 Other grant applications not yet approved $ 0 AEA 15003 Page 5 of 28 7/2/14 Renewable Energy Fund Round VIII ALAS CA Gat A Grant Application - Standard Form �' ENERGY AUTHORITY pp o 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 $ 26,272,407 Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. 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.akerrergyauthor+ty.org1REFund8.htmF. 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 benef 1cost ratio used will be derived from the AEA model to ensure a level playlOng field for all a licants. 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 $ 1.44 million/year $1 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 North Slope Borough's project management approach to this project, and to its overall energy upgrade program, is to utilize a team approach consisting of North Slope Borough staff, external consultants and general contractors. Mr. Richard SanJose will be the Program Manager and will be the contact for any technical questions. Mr. Timothy Rowe is the Grants Administrator and will handle grant paperwork, amendments and financial matters. Resumes for Mr. SanJose and Mr. Rowe are attached. The North Slope Borough provides a project team from its operating staff. The Program Manager, Richard SanJose, provides oversight to Project Administrators who interface with the Engineering Consultant and General Contractor. The PM and PA group provides internal focus and coordination of special projects including project development, planning, construction coordination, and reporting. The Engineering Consultant of the North Slope Borough provides technical input on design, feasibility, generation and distribution issues to the team. Additionally, the engineering group provides specifications, design and drawings for North Slope Borough construction of diesel power plants and distribution systems. The Engineering Consultant provides construction administration and commissioning input on behalf of new construction performed by the North AEA 15003 Page 6 of 28 7/2/14 Renewable Energy Fund Round VIII - - i n - Standard Form � ENEFOWAUTHORfTY Grant Applicat o Slope Borough contractor. The manager of administrative services, Timothy Rowe, provides support in accounting, payables, financial and progress reporting, and capitalization of assets in accordance with NSB guidelines.. The project management team's structure is designed to provide flexibility for the North Slope Borough participants. They have operational responsibilities to the Borough as well as project development responsibilities. This project is being funded and completed in phases. This approach works well with the North Slope Borough's management style. The functional -interface relationships allow engineering tasks, village government and public relations tasks, procurement functions, and internal construction operations to be dovetailed into the project development process. Cross utilization of talent and resources is an advantage to the project delivery process, providing economies of scale for using project resources. For project delivery, an amalgamated team approach is utilized. To support the North Slope Borough team, design consultants and construction services managers are selected. Both disciplines are derived from a resource bank of professional firms with applicable histories of performance in rural Alaska. The construction services manager works concurrently with the design consultant through design development to provide constructability insight and value engineering to maximize the overall effectiveness of the final construction documents. Though a contract currently exists with Leland A. Johnson & Associates for the completion of the feasibility and conceptual design phase of the project, based on North Slope Borough procurement standards, this size of contract would require a solicitation of sealed bids. Upon receipt and inspection of the bids following North Slope Borough procurement standards, the contract would be awarded. This is anticipated to occur within 90 days of the end of the current phase of the project. 3.2 Project Schedule and Milestones I 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 eleariY 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. Start End Milestones Tasks Date Date _ Project Scoping and Contractor Request and review sealed bid documents for the Solicitation selection of the contractor. 1/l/15 4/1/15 Environmental Studies Cultural resources surveys, wetlands survey and ESA consultation materials 7/1/15 12/31/15 NEPA Document support Prepare environmental impact and mitigation report 7/1/15 1/31/16 Permits, right of way, site control Obtain Federal, State and local agency permits complete 7/1/15 4/30/16 Geotech / Survey Reports Survey alignment and prepare report 8/1/15 10/31/15 Resolution of Land use, right of way Utilize survey results to identify land use and right of issues way issues and resolve 11/1/15 4/30/16 Final Design Prepare CDs, material specs, structure layout drawings Complete final cost estimate Complete revised economic and financial analysis 11/15/15 8/31/16 Final Cost Estimate 7/1/2016 8/31/16 Update Economic and financial analyses 7/1/2016 8/31/16 Heat conversion design Prepare drawings for home and building facilities conversion to electricity. Pre are estimates 8/15/15 12/31/15 Heat Conversion final design Prepare final design and construction documents 1/15/16 4/31/16 AEA 15003 Page 7 of 28 7/2/14 Renewable Energy Fund Round VIII Jr Grant Application - Standard Form MID ENERGYAUTHORrrY 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 North Slope Borough will ultimately be responsible for successful completion of the project, using partners that have successfully installed similar systems in the recent past. Electrical system engineering will be subcontracted, using current internal procurement practices and selection of engineering service providers from prequalified organizations. The contracted A&E firm will complete the design for the project. The North Slope Borough will subcontract for the construction ` of the foundations and the contracted A&E firm will manage that construction. 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. North Slope Borough will assign a project manager to the project. One responsibility of the project manager will be to compile periodic progress reports for use by the Authority. Weekly and monthly project coordination meetings will be held with the project team to track progress and address issues as they arise. 3.5 Project Risk Discuss potential problems and how you would address them. Logistical and construction activities and weather all Borough routinely purchases Builder's Risk insurance addition to outside insurance, the experienced team contracted A&E firms with projects much like this one North Slope Borough has extensive experience worki Crucial to successful completion of projects in these flexibility in timing. contain significant risks. The North Slope to mitigate its exposure to these risks. In of North Slope Borough employees and n similar circumstances reduces risk. The ig in rural Alaska under these conditions. environments are advanced planning and The NPRA Act and 1984 Barrow Gas Fields Transfer Act allow for the extension of natural gas from Barrow's gas field to surrounding NSB communities via gas pipeline or electric power transmission. Both UIC and ASRC signed agreements to provide Right -of -Way access across their lands for the purpose of extending Barrow Gas to surrounding NSB communities. Every effort has been made on previous work to avoid routing the transmission line near Native Allotments. Any environmental issues that arise will be addressed by adjusting the route corridor, technology or both so permits can be obtained AEA 15003 Page 8 of 28 7/2/14 Renewable Energy Fund Round VIII AKA Grant Application - Standard Form INU� ENERGYAUTHORFY 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. The Principal Accountant assigned to this project will be Ms. Eva Leavitt. Ms. Leavitt has 8 years' experience as both a grants administrator and grant accounting specialist within the grants division. Ms. Leavitt's work is supervised by our Grants Accounting Manager and Governmental Accountant. Ms. Leavitt's resume is attached for your review. 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. The North Slope Borough (NSB) is a municipal corporation governed by an elected mayor and seven -member assembly. The accounting system utilizes the U.S. generally accepted accounting principles (GAAP) established by the Governmental Accounting Standards Board (GASB). The North Slope Borough Administration and Finance Department ensures the financial integrity of the NSB in a manner that meets or exceeds regulatory standards. All documents that initiate an encumbrance or payment are approved through the Director's office. The NSB utilizes a AS400 based JD Edwards system for its accounting system. The system allows for division of funds which tracks each project separately. For grants, a separate document is also maintained to ensure that the expenditures are tracked in the budget categories prescribed in the grant agreement. Both systems are subject to audit review during the single audit process. 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. Management has established a "tone from the top" that emphasizes integrity and ethical values, and the importance of compliance with program requirements.. The program's organizational structure is conducive to compliance with the program requirements as the Grant Administrator and Grant Accountants work closely together. This small office environment promotes communication and an organizational structure that is conducive to compliance. The Grant Administrator is ultimately responsible for ensuring that the activity is in compliance with the NSB procurement standards, that the activity is allowable within the framework of the grant and that the cost is reasonable, ordinary, and necessary for the project. All contracts including those related to grants are reviewed by the Law Department to ensure compliance with the terms of the grant and the procurement standards of the NSB. AEA 15003 Page 9 of 28 7/2/14 Renewable Energy Fund Round VIII Stan and Form � ENERGY AUTHORITY Grant Application- d NSB has an official written procurement policy that details the procurement process and includes Federal requirements. It is available for review as part of the municipal code on the NSB website. All expenditures are reviewed both at the time of the inception of the contract, purchase order, or purchase order to ensure compliance with the terms of the NSB procurement code and the terms and requirements of the grant agreement. When the item or service is received and a invoice is generated, a detailed review of the invoice occurs. The invoice is reviewed by the Program Manager and the Grants Administrator to ensure compliance with the terms of the grant. All expenditures are reviewed by the Grants Accounting department and Grants Administrator upon preparation of the required financial reports and prior to any request for reimbursement. 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. Barrow: Natural Gas: Natural gas in Barrow is a known and developed energy resource. It consists of three gas fields and provides energy for power and heat in Barrow. The current reserve estimates for each field are: South Barrow Gas Field = 8 to 9 billion cubic feet East Barrow Gas Field = 5 to 10 billion cubic feet Walakpa gas Field = 150 to 240 billion cubic feet Total: 163 to 259 billion cubic feet Currently Barrow consumes about 1.5 billion cubic feet of gas each year. At the current consumption rate the gas fields will provide energy for approximately 120 years. Gas availability is unlikely to be a concern for Atqasuk because the community demand will be less than 5% of the current demand by Barrow. Atqasuk: Wind: The Atqasuk Wind Resource Report prepared in 2010, shows the wind power class at level 3-4, (fair). This is typical of inland Villages and the low rating would affect the economics. Further, the technology has not been proven on the North Slope. The Borough has chosen to demonstrate this technology in the community of Kaktovik which has a wind power class at 5-6 (very good). Wind was evaluated in the "Energy Options for the City of Atqasuk" and was determined not to be economically feasible. Coal: Atqasuk has coal deposits that where mined in the 50's to provide energy to the BIA school in Barrow and for local resident consumption. Also in the late 80's the NSB operated a small AEA 15003 Page 10 of 28 7/2/14 Renewable Energy Fund Round VIII Grant Applicatio n n - Standard Form �4001U�ENUMAUrHORmr surface mine that was used on a local coal demonstration project. The operation was small, providing coal for home heating. Small scale coal technology to handle both power and heat in Atqasuk was evaluated in the "Energy Options for the City of Atqasuk" and was determined not to be economically feasible. Regional Energy Distribution System: In a broad, longer term view, other resources may be enhanced by the intertie. In the future the Village of Wainwright could be tied into the Barrow to Atqasuk transmission Line. Coal -bed methane has been discovered and may prove viable in the future. Further down the coast near the Village of Point Lay, lies the western arctic coal reserves, a source of high BTU and low sulfur coal in vast quantities, (10% of the world's coal resource). A power network connecting all the Villages from Barrow to Point Hope and possibly Red Dog mine, Kivalina and Noatak could be powered from this resource for a very long time. 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. Atqasuk: Distribution system — The existing distribution system is a three phase overhead system configured with two feeders from the power plant. Power is generated at 480 volts and stepped up to 4,160 / 2,400 volts with a 1,000 KVA station transformer connecting each overhead feeder. Power Plant — The power plant consists of two structures housing five generators with a total power capacity of 3,370 kW. The original power plant building includes two 3508 Caterpillar diesel generator sets rated at 450 kW each and one 3512 Caterpillar diesel generator set rated at 650 kW. Adjacent to the power plant building is a prefab metal building that houses two 3512 Caterpillar diesel generator sets rated at 910 kW each. Fuel System — Diesel fuel is barged once a year for Atqasuk delivered first to the Barrow tank farm. In fiscal year 2013 it was landed in Barrow at $4.38/gallon. From Barrow, the fuel is flown into Atqasuk or delivered by all -terrain vehicles. In FY 2013 fuel freighted to Atqasuk cost $2.18/gallon. Once in Atqasuk the fuel is delivered to either the NSB Tank Farm with a capacity of 500,000 gallons or the power plant tank farm with a capacity of 88,385 gallons. The power plant tank farm is replenished from the NSB tank farm by truck when needed. Barrow: Barrow's electrical power is provided by Barrow Utilities & Electric Cooperative, Inc. (BUECI). The Coop purchases natural gas from the NSB Gas Fields at the wholesale price of $1.00 a MCF ($1 million BTU). It generates electricity and retails it to its customers at $0.11 per kWh. Power Plant — The Barrow power plant houses seven generators with a total capacity of 20,500 kW. This includes two Solar Taurus gas turbines rated at 5,000 kW each; three Solar Centaur gas turbines at 2,500 KW each and two Caterpillar reciprocating gas units rated at 2,000 kW each 4.2.2 Existing Energy Resources Used AEA 15003 Page 11 of 28 7/2/14 Renewable Energy Fund Round VIII Form ��>Etv�YAUTHORHY Grant Application Standard 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. J Atqasuk: The existing energy source used for power and space heating in Atqasuk is imported diesel fuel. The cost of diesel is higher in Atqasuk than other NSB Villages because it is an inland village. Fuel is first barged into Barrow and stored in the NSB Barrow Tank Farm. From Barrow it is either flown into Atqasuk or freighted overland by all -terrain vehicles. In FY 2013 fuel was delivered to Atqasuk's tank farms at $6.56/gallon. From the Atqasuk Transmission Line Feasibility study fuel was delivered in FY 2010 at $5.16/gallon. This is a $1.40 / gallon increase or a 27% increase in just three years. This shows the price instability of fuel oil. The use of electricity for space heating will reduce noise and emissions pollution, cut the size of the Atqasuk Tank farm in half, reduce the potential and high cost of fuel spill cleanups, reduce the cost of tank farm inspections and tank repairs and reduce regulatory involvement in the community. In addition, the problematic waste heat recovery system that has been the scene of three costly glycol spills will be utilized significantly less. Barrow: Barrow meets its power and space heating needs through the use of natural gas, a local energy resource. In contrast to Atqasuk the price for natural gas in Barrow has not increased from FY 2011 to FY 2013. It has been a stable priced energy resource for decades. The BUECI power plant generating capacity (20 MW) is sufficient to handle Atqasuk's power and space heating loads. The power plant operates at a peak of about 9 MW. Atqasuk's peak power load was 601 KW in FY 2013. It has been estimated the conversion of all residential customers in Atqasuk to electric heat will add 463 KW to BUECI's peak load. Combined with power the additional peak load would amount to 1064 KW. The conversion of Atqasuk's government and commercial facilities would add an additional 935 KW. Combined with power, residential peak loads and the loss of waste heat recovery (180 kW) the total peak load amounts to 2,180 kW. It is planned to use SCADA technology to monitor and control the electric loads in Atqasuk from Barrow. This will control any heavy start up loads after a system outage or reduce the commercial electric load if necessary. Also BUECI is in the planning process of upgrading and increasing the generating capacity of its power facilities. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Barrow uses natural gas, a local energy resource developed by the federal government in the late forties and used by the community since the sixties, to meet its power and space heating needs. The gas field and associated infrastructure was transferred by the federal government to the NSB in 1984. It has been a stable priced resource since. Atqasuk, on the other hand, has used imported #1 Arctic Grade Diesel Fuel since its incorporation in the seventies to meet their energy needs. The proposed 70 mile electric power intertie between Barrow and Atqasuk will significantly reduce the cost of power to the customers of Atqasuk. Currently, the price of electric energy charged to Barrow residential customers is just under $0.11 per KWh. The cost of generating electricity in Atqasuk is around $0.84 per kWh. However the residential customers are billed at a subsidized rate: AEA 15003 Page 12 of 28 7/2/14 Renewable Energy Fund Round VIII � MCA jy Grant Application - Standard Form 4MMICENEFMAU HO Y 1-600kWh @ $0.15 per kWh > 600 kWh @ $0.35 per kWh A customer using the average monthly consumption of 720 kWh pays in comparison the following: NSB Rate = $132 Barrow Rate = $ 79 Customer savings for the month = $ 53 By using gas from Barrow, Atqasuk would no longer qualify for Power Cost Equalization benefits. In addition to lower power costs space heating costs will also be reduced. The FY 13 landed price for fuel oil in Atqasuk was $6.56/gallon. This equals $49 million BTU. In comparison, electricity at $0.11 kwh equals $32 million BTU. The electrical demand requirements for Atqasuk with the intertie are as follows: Power consumption= 3,449,522 kWh Waste heat = 993,682 kWh Residential heat consumption = 2,387,532 kWh Commercial heat consumption = 4,688,222 kWh Total Consumption = 11,518,958 kWh As important as the direct cost savings would be, the conversion of Atqasuk's reliance on costly, unstable imported diesel fuel to a local stable priced energy source makes the transmission line project a viable long term solution to a critical energy problem. Further the continued use of fuel oil will not only be impacted by price instability, but more likely be accompanied by enhanced regulations and penalties 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 Description The natural gas resource is not renewable but the intertie connecting two communities and replacing fuel oil with electrical energy fueled by natural gas qualifies for the AEA Renewable Energy Fund Grant Program. The economic benefit is very significant in that expensive diesel fuel is being replaced by natural gas produced from the Barrow Gas Fields which are owned by the NSB. The Borough wholesales the gas to BUECI, the electrical coop in Barrow, at $1 per MCF which is equal to $1 million BTU. Fuel oil delivered to Atqasuk cost $6.56/gallon or $49 million BTU. Atqasuk's peak demand is anticipated to be around 2,180 kW and includes all power and space heating requirements. The Atqasuk power plant, which will provide backup service, has a generating capacity of 3,370 kW. AEA 15003 Page 13 of 28 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form � 4001V ENERW ALTHORr'Y The transmission line will be designed to withstand the harsh environment of the Arctic. The line will be operated at 69 kV. It will have a capacity of 10MW and have a line loss of 3.8%. 115 kV insulators will be used to avoid flashover from salt contamination_ Optimum Installed Capacity BUECI has an installed capacity of 20,500 KW. Its operating peak is at about 9,000 KW. Anticipated Capacity Factor The anticipated capacity factor is 26.7. This combines the installed capacity at both BUECI and Atqasuk and the average daily usage of both communities. Annual Generation Annual generation at Atqasuk is expected to be 11.5 million kWh and at Barrow, 54.0 million kWh. Anticipated Barriers The avian environmental concern near Barrow may require changes to the design or routing. This can only be determined after the permitting process moves forward. Basic Integration concept and delivery methods The Atqasuk integration will be accomplished by adding a three phase circuit and a step-up transformer at the BUECI power plant to energize the transmission line to Atqasuk. In addition, a recloser would be added to sectionalize the line in the event of a line fault. At Atqasuk, a step-down transformer and an automatic recloser would provide for automatic startup of the backup diesel plant in Atqasuk. The distribution system and service panels in Atqasuk will be upgraded to support the increased power that is required to provide electric heating in addition to the present demand for non -heating power. 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. Organizations, communities and others that will be impacted by land ownership issue include: 1 • City of Atqasuk • Arctic Slope Regional Corporation (ASRC) • Ukpeagvik Inupiat Corporation (UIC) Bureau of Land Management (BLM) • Native Allotments City of Atqasuk: The community of Atqasuk original supported a transmission line project through Resolution 81-3 in 1981. Since representatives from the village were on the project team during the Energy Options for the City of Atqasuk study in 2008. Representatives from Atqasuk made up the Steering Committee that formed and monitored the progress of the Atqasuk Transmission Line Feasibility Study in 2011. The Atqasuk Mayor and Lead Power Plant Operator were involved in providing data, assisted in project team visit and monitored the progress of the Atqasuk Transmission Line Preliminary Engineering Study. The same two representatives will also provide oversight and local input throughout this project. ASRC and UIC: Both local Native Corporations whom are landowners on the North Slope provided to the Borough letters of concurrence to construct a power line across their lands in 1981. In AEA 15003 Page 14 of 28 7/2/14 Renewable Energy Fund Round VIII Grant Application plication - Standard Form am- °''�"Y 11 addition both the National Petroleum Reserve Act of 1976 and the Barrow Gas Field Transfer Act of 1984 obligate both Native Corporations to provide right-of-way easements to permit the NSB to supply local energy resources to Barrow, Atqasuk and Wainwright. The Transfer Act specifically mentions "...including the transmission of electricity from the Barrow Gas Field, or from any other source of energy chosen by the NSB, to supply Barrow, Wainwright and Atqasuk." It is our intent to keep all landowners involved throughout this project by holding public meetings. Native Allotments: The most significant concern maybe native allotments. The native allotments in the project area are have been well documented by the NSB. Since we are dealing with a technology that is flexible, we can avoid native allotments through the routing of the line. To date with the NSB has worked to avoid all known allotments and have applied the Native Village of Barrow's minimum clearance of 200' between construction and a native allotment. 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 List of applicable permits and timeline Federal: • BLM Right -of -Way Permit — July 2015 to May 2016 • Wetlands Permit (section 404 and 10) — July 2015 to April 2016 State: • State of Alaska Use Permit — July 2015 to August 2015 • State of Alaska Easement — July 2015 to August 2015 • Fish Habitat Permit (Title 16) — July 2015 to April 2016 Borough: • Certificate of IHLC/TLUI Clearance, Form 500 — July 2015 to August 2015 • NSB Land Use Permit — July 2015 to August 2015 • Village District Permit, Form 700 — July 2015 to August 2015 Potential Barriers • BLM Right -of -Way — Consultation with the BLM is needed to determine the required level of documentation (Cat -Ex, EA or EIS). If an EIS is required the process could take 6 months to several years depending on BLM's requirements Wetlands Permit (section 404 and 10) — USACE request for field anticipated 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 AEA 15003 Page 15 of 28 7/2/14 Renewable Energy Fund Round VIII Grantj440NEENcr mali�A - � Application - Standard Form �ENEMY AUTHORrrY • Visual, aesthetics impacts • Identify and discuss other potential barriers Threatened or endangered species Three federally listed threatened species (Spectacled Eider, Steller's Eider and polar bear) and one candidate species for listing (Yellow -billed loon) occur in the project area. We would seek an Endangered Species Act Clearance from the USFWS. Formal consultation may be required to determine if "take" under ESA would occur. We would need to ensure that construction of the transmission line would have no harmful impact on threatened species. Construction would be timed to avoid impacts to migratory birds in compliance with the Migratory Bird treaty Act Habitat Issues The project could involve crossing anadromous fish streams, requiring a Fish Habitat Permit in consultation with the Alaska Dept. of Fish and Game. We would need to ensure the project would not impact any state refuges, sanctuaries or critical habitat areas, federal refuges or wilderness or national parks. Wetlands and other protected areas The project could involve placing utility poles in wetlands under the jurisdiction of the U.S. Army Corps of Engineers (USACE), and therefore the project would require a Wetlands (Section 404 and Section 10) Permit. Also, a Wetlands Permit would be required if any poles were placed below ordinary high water of any navigable stream. Archaeological and historical resources There is the potential to find cultural or historic resources in the project area. In accordance with the National Historic Preservation Act, the undertaking would need to be reviewed by the Alaska Department of Natural Resources (ADNR) State Historic Preservation Office (SHPO). During formal Section 106 consultation, the SHPO would determine whether additional surveys and mitigation would be required. In addition to the Section 106 process, the project would need to receive an approved Certificate of Inupiat History, Language and Culture/ Traditional Land Use Inventory (IHLC/TLUI) Clearance from the NSB. Land development constraints Because the Barrow - Atgasuk intertie project would cross land owned by the State of Alaska, a Land Use Permit would be needed from the Alaska Division of Natural Resources (ADNR) Division of Mining, Land and Water (DMLW). A permanent utility easement and temporary water use authorization could be needed from this agency, as well. Also, as this project would likely occur within the NSB and two village districts, a NSB Land Use Permit and Form 700-Village District Permit would be required. The intertie also would cross Bureau of Land Management (BLM) land, requiring the project to comply with the National Environmental Policy Act (NEPA). Aviation considerations A finding of "Determination of No Hazard to Air Navigation" would be sought from the Federal Aviation Administration (FAA) if the intertie is routed near an airport. Visual, aesthetics impacts. The project would involve construction of utility poles ranging in height from 65 feet to 80 feet tall. These poles would be constructed largely between, rather than within, the villages. It is likely that there would be little concern for visual or aesthetic impacts, as communities often note that utility poles offer a helpful visual guide point when traveling outside a village. The project team would AEA 15003 Page 16 of 28 7/2/14 Renewable Energy Fund Round VIII - Grant Application - Standard Form � ENERGYAUTHORFrY II conduct community meetings to discuss visual impacts and how they could be minimized, in the unlikely event that visual issues arise. Identify and discuss other potential barriers National Environmental Policy Act (NEPA) considerations. Because the intertie would cross Bureau of Land Management (BLM) land, the project would have to comply with NEPA. NEPA requires all federal actions, including the BLM issuing right-of-way across their land, to develop and disclose the project's purpose and need, alternatives (including a no -action alternative), and environmental impacts (natural, social, and economic). Typically, environmental disclosure documents (such as Categorical Exclusions, Environmental Assessments, or Environmental Impact Statements) are prepared by the federal agency but require input from the project proponent, in this case the North Slope Borough. 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 This application is for the Final Design and Permitting phase of the project. We are requesting $2,017,818 for this phase of the project. The North Slope Borough will provide project administration for the project as in -kind match in the amount of $33,446, and will provide up to $168,336 for a total match amount 10% or $201,782 which will be based on the total award. The total cost of the phase will be $2,219,600. The total cost of the project is anticipated to be $26,272,407 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.) From the Atqasuk Transmission Line Feasibility Study the costs to maintain the intertie are $90,000 annually. Cost to purchase electric power for both heat and power is $358,000. Intertie maintenance issues will be funded by the NSB Power & Light operating Budget. Electric power would be paid for by the consumers through their monthly billings. 4.4.3 Power Purchase/Sale AEA 15003 Page 17 of 28 7/2/14 Renewable Energy Fund Round VIII � Grant Application - Standard Form ® Er e:,rnuTHM Y 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 The Community of Atqasuk will make up the customers. It is an inland village with a population of 218 people. There are 57 residential and 61 commercial customers in Atqasuk. The BUECI rate for residential customers in Barrow is about $0.11/Wh. Another option is to have the Borough pay BUECI a monthly contract rate and in turn bill the customers in Atqasuk. BUECI has the E-10 rate which is charged for their large customers. This includes a monthly fixed charge of $347 and a kWh charge of $0.0846/kWh. From the feasibility study the net present value of cost savings of the project over 35 years is over $50 million. AEA 15003 Page 18 of 28 7/2/14 Renewable Energy Fund Round VIII I =., ,ALAS , Grant Application - Standard Form 1 4MENU ENf�CYAUTHORfTY 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. See below. Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) Natural gas in Barrow is projected to last over 120 years at its current consumption rate of 1.5 billion cubic feet of gas. The Atqasuk Transmission Line Project will provide power to meet Atqasuk's power and total heating needs will increase the consumption of gas by about 12%. [Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other 5 generators ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other 450 KW, 450 KW, 650 KW, 910 KW, 910 KW Caterpillar reciprocating diesel gensets 1994, 1994, 2002, 2002, 2002 respectively 12.9 kWh/Gal 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] In FY 13 total generated kWh = 3,447,700 kWh ii. Fuel usage Diesel [gal] 267,196 Other iii. Peak Load 601 kW iv. Average Load 409 kW v. Minimum Load vi. Efficiency 12.9 kWh/gal vii. Future trends steady d) Annual heating fuel usage (fill in as applicable) 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 28 7/2/14 Renewable Energy Fund Round VIII '40'MID n 1_ SX d _ R Grant Application - Standard Form 4MMID ENERGY AUTHOWY 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 214,371 gallons r Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity 23,870 kW Barrow 20,500 kW & Atgasuk 3,370 kW (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 11,518,959 kWh for power and heat 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 a) b) Project Cost Total capital cost of new system Development cost c) Annual O&M cost of new system d) Annual fuel cost Project Benefits a) Amount of fuel displaced for i. Electricity 270,000 gallons ii. Heat 214,371 gallons iii. Transportation b) Current price of displaced fuel c) Other economic benefits $17,342,800 $ 2,219,600 $ 240,000 $ 1,040,483 $6.70 / gallon Reduced oil spills, reduced tank farm cleaning and repair, reduction in power plant and tank farm non - fuel operating costs AEA 15003 Page 20 of 28 7/2/14 Renewable Energy Fund Round VIII )K =MCI Grant Application A licati n - Standard Form GEOND ENERGY AUTHORITY d) Alaska public benefits Elimination of PCE, reduced local noise and emission pollution and elimination of the cost of importing fuel oil. Strengthen local economy Power Purchase/Sales Price a) Price for power purchase/sale $0.11/kWh -- Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 3.16 Payback (years) 8 years 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. Atqasuk will lose the States PCE benefit. However, since the Borough's existing rate is at $0.15/kWh for the first 600 kW and the minimum level to qualify for PCE is around $0.14/kWh. The impact of the loss of the PCE benefit would be minimal. Barrow would gain in kWh sales, especially if the project were developed to provide both power and heat to Atqasuk. It is highly probable the project could have a positive impact on BUECI's revenues causing the utility to lower its current rate schedule. AEA 15003 Page 21 of 28 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form t=� 4NEK-7 E►vERGYAUTHORrFY 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. j 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 Atqasuk would displace approximately 17 million gallons of diesel fuel over 35 years costing about $128,935,000. Anticipated revenue is $1,040,000 annually There are several non -economic benefits such as: • reduction in emissions and noise pollution. • reduced anxiety due to the unpredictable price of imported fuel oil every year. • More reliable and quality power which has become more critical due to the ever expanding electronic technologies. • Lower probability of fuel spills. • Increase safety in the village due to the backup power and space heating equipment. 5.1 Public Benefit for Projects with Private Sector Sales Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. Renewable energy resource availability (kWh per month Estimated sales (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) Estimated sales (kWh Revenue for displacing diesel generation for use by the Alaskan public $ N/A AEA 15003 Page 22 of 28 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form � 411111111V_�ENERGY ALTHORFY 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 There are two options. One is to have BUECI operate the entire facility including the power plant and distribution system in Atqasuk under an agreement with the NSB. They would collect and retain revenues from the customers in Atqasuk. The other option is for the Borough to retain jurisdiction over the line and enter into a contract with BUECI to purchase power at a bulk rate at the substation in Barrow. The Borough would continue to operate the transmission line, Atqasuk power plant and distribution system. The Borough would also collect revenues from the Atqasuk subscribers as it currently does. The O&M of the transmission line would become the responsibility of the NSB Power & Light enterprise and use its budget and personnel to maintain and operate the line. If there is a need for capital investment the Borough would provide funds through its capital improvements program. There should not be any significant operational issues since the Borough and BUECI currently operate power systems in the North Slope. The existing system will be kept as backup. We estimate $20,000 of fuel each year would allow for scheduled operation of the existing power plant. Since the power plant and water plant are connected, one or more of those existing operators can be trained to operate the facility as required. If BUECI operates the system in Atqasuk they can use the existing water plant operators and the planned SCADA system that would be used to remotely monitor and operate the power plant. The Borough is highly interested in monitoring the economics of this project. If it works as planned there are other communities that may benefit from a similar electrical intertie. The Borough is committed to assessing the benefits of this project and reporting it to the AEA, Borough Assembly and City of Atqasuk. AEA 15003 Page 23 of 28 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form ENERGY AUTHORITY 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. Currently the NSB is completing the Preliminary Engineering portion of the project. This should be completed by the end of this year. When Round VIII is awarded, the NSB and project team will be in place to proceed with this grant upon receipt of a notice to proceed from the AEA. The NSB has conducted several studies related to this project since 1981. More recently the NSB completed the NPRA funded "Energy Options for the City of Atgasuk", 2008. The preliminary feasibility and assessment study identified the Transmission Line to Atqasuk as the most promising energy project for Atqasuk. Since, the Borough has completed the Borough funded power line study from Barrow to the Walakpa Gas Field utilizing the existing VSM pipeline support structures. This concept was utilized on the western route concept in the "Atqasuk Transmission Line Feasibility Study", completed in 2011. The NSB has also provided in -kind support of personnel to provide energy data, grant and project administration, technical input, project development and oversight, and assistance in right-of-way, mapping, native allotments and other land issues. 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 community of Atqasuk is well aware of this project. They passed a resolution of support for the project as far back as 1981. On August 28, 2008 Leland A. Johnson and Kent Grinage, NSB Project Manager, conducted a town meeting in Atqasuk to present and discuss the findings of the "Energy Options for the City of Atgasuk". The transmission line was identified in the study as the best energy project for Atqasuk. In 2010 the NSB utilized a steering committee to develop and monitor the progress and results of the Atqasuk Transmission Line Project Feasibility Study. The Committee consisted of the Vice Mayor of Atqasuk and the Lead Power Plant Operator from Atqasuk and two NSB Division Managers. The Atqasuk Transmission Line Project Preliminary Engineering Project is being assisted and monitored by the same two Atqasuk representatives. One of the representatives is now the mayor of Atqasuk. He keeps the community informed of the project at the monthly City Council meetings. A resolution passed in support of the project was passed in October 2013 in support of the Round VII application. It is attached. A resolution in support of this application will be presented to the assembly in October 2014. AEA 15003 Page 24 of 28 7/2/14 Renewable Energy Fund Round VIII�A Gmnr Grant Application - Standard Form \ ENERGY AUTHORrfY 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 J 9.1 Funding sources and Financial Commitment Provide a narrative summary regarding funding source and your financial commitment to the project The design and permitting phase of the project will require $2,219,600. These funds will be used to complete the design and permit the project and advance the project to the construction phase. The North Slope Borough will provide up to 10% match for the project in in -kind project administration costs and cash match based on the amount of the award. 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. This phase of the project is for design and permitting. As part of this phase, should additional metering equipment be necessary to fulfill the reporting requirements, it will be incorporated into the design. Cost estimates for any additional equipment will be available at the end of this phase. AEA 15003 Page 25 of 28 7/2/14 Renewable Energy Fund Round VIII -_ ALASA Gpp rant Application - Standard Form MMF� ENERGY AUTHORrrY 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. a . Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/in- TOTALS kind/Federal Grants/Other State Grants/Other Cash $ 140,600 Project Management 10/30/2015 $100,354 $40,246 Environment 0 0 Environmental Studies 12/31/2015 $102,273 $10.227 Cash $ 112,500 NEPA Doc Support 1/31/2015 $22,636 $2,264 Cash $ 24,900 Permits 4/30/2015 $22,636 $2,264 Cash $ 24,900 0 $0 -Engineering Geotechnical / Survey Reports 10/30/2014 $363,636 $36,364 Cash $ 400,000 Basics of Design Document 1/31/2014 $387,273 $38,727 Cash $ 426,000 $ 504,000 Final Line Design 8/31/2015 $485,646 $18,354 Cash ATQ Energy Conversion Design Heat Conversion Design 65% Ht Conv Final Design & C D's 0 $162,000 $189,545 $0 $ 178.200 _ $ 208,500 12/31/2014 $16,200 Cash 4/30/2015 $18,955 Cash Contingency @ 10% $181,818 $18,182 Cash $ 200,000 TOTALS $440,000 $44,000 $484,000 Categories: -Budget Direct Labor & Benefits $0 $33,446 $33,446 Travel & Per Diem $0 $6,800 $6,800 Equipment $0 $0 $0 Materials & Supplies $0 $0.0 $8,800 Contractual Services $1,836,000 $143,354 $1,879,000 Construction Services $0 0 $0 Other $181,818 $18,181. $200,000 TOTALS $2,017,818 $201,782 $2,219,600 AEA 15003 Page 26 of 28 7/2/14 Renewable Energy Fund Round VIII Grant Application - c i n and Form 400 EN�YALIMORITY Standard d SECTION 10 —AUTHORIZED SIGNERS FORM Community/Grantee Name: North Slope Borough Regular Election is held: Every 3 Years I Date: 1st Tuesday in October Authorized Grant Signer(s): Printed Name Title Term Signature Jacob Adams Sr. Chief Administrative Office N/A I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Charlotte E. Brower Mayor 2011-2014 I l T� Grantee Contact Information: Mailing Address: Phone Number: Fax Number: E-mail Address: Federal Tax ID #: PO Box 69 Barrow, AK 99723 (907) 852-0467 (907) 852-4145 Timothy. Rowe@north-slope.org 92-0042378 Please submit an updated form whenever there is a change to the above information. AEA 15003 Page 27 of 28 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form r 4009--' ENERGYAUMORFYY 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 The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name I Mayor Charlotte E. Brower Signature Title I Mayor Date A, m,� .V /_ V_ AEA 15003 Page 28 of 28 7/2/14