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HomeMy WebLinkAboutFINAL Shungnak REF Application 09192014Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 1 of 33 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 33 7/2/14 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Native Village of Shungnak Type of Entity: Native Tribe Fiscal Year End: September 30 Tax ID #92-0061970 Tax Status: ☐ For-profit ☐ Non-profit ☒ Government (check one) Date of last financial statement audit: Mailing Address: Physical Address: P.O. Box 64 Shungnak, Alaska 99773 Telephone: Fax: Email: 907-437-2163 907-437-2183 tribeadmin@issingnak.org 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Glenda Douglas Title: Administrator Mailing Address: P.O. Box 64 Shungnak, AK 99773 Telephone: Fax: Email: 907-437-2163 907-437-2183 tribeadmin@issingnak.org 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: James Comack 907-412-2184 907-437-2173 transportation@issingnak.org Sonny Adams 907-265-4185 907-343-5686 Sonny.Adams@nana.com Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 3 of 33 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/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) This project is a final design and permitting project. In the construction phase, we anticipate that AVEC or the City of Shungnak will apply for construction funds. AVEC owns and operates the power plant in Shungnak and will take ownership of the wind turbine construction and operation/maintenance. Native Village of Shungnak will own the road leading to the turbine site, and it will be listed in the Native Village of Shungnak roads inventory in order to provide road maintenance and improvements from their BIA Tribal Transportation contracts. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 4 of 33 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. Shungnak Wind-Diesel Design 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. Latitude: N 66° 55’ 44.01” Longitude: W 157° 7’ 33.38” This location is within 2.5 miles of Shungnak, Alaska. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Shungnak, Alaska will benefit from this project. The community of Kobuk will also benefit from this project when the turbine is installed and becomes part of the energy intertie between Kobuk and Shungnak. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type ☒ Wind ☐ Biomass or Biofuels (excluding heat-only) ☐ Hydro, Including Run of River ☐ Hydrokinetic ☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy ☐ Solar Photovoltaic ☐ Storage of Renewable ☐ Other (Describe) ☐ Small Natural Gas 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction ☐ Reconnaissance ☒ Final Design and Permitting ☐ Feasibility and Conceptual Design ☐ Construction 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. S Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 5 of 33 7/2/14 Based on the conclusions of our completed wind resource data collection report, the Native Village of Shungnak will, with Alaska Energy Authority (AEA) assistance, complete the design process to successfully install a wind-diesel system in the community. This includes automated controls and the equipment necessary to regulate, control and deliver reliable wind energy to the residents of the community. The project will produce the final designs and plans and complete the necessary permitting for one projected wind turbine and the associated equipment installations to upgrade the existing power generation and distribution system to produce power from a wind turbine-diesel engine configuration. The Native Village of Shungnak will hire and contract with an engineering consultant to complete this design project and provide management oversight of any subcontracted engineering/design firms. The consultant will also complete the construction solicitation package by working closely with NANA Regional Corporation, Shungnak Power Plant operator, and the Native Village of Shungnak. 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.) When this project is completely constructed and in operation, the primary financial benefit from construction of the wind turbine will be reduced fuel costs to the people of Shungnak and Kobuk. Preliminary estimates of annual diesel fuel savings are approximately 70,000 gallons for a 500 kW wind-diesel system (about a 57% reduction). In addition to the direct fuel reduction are the benefits of:  Reduced long-term dependence on outside sources of energy;  Reduced exposure to fuel price volatility;  Reduced air pollution resulting from reducing fossil fuel combustion;  Reduced possibility of spills from fuel transport and storage; and  Reduced overall carbon footprint and its contribution to climate change. These projections did not factor in increases in population, increased loads or efficiency improvements or the displacing of fuel for diesel-fired hot water heating with excess electrical energy from the wind turbine; the displacement of fuel for heating is undetermined at this time; however, any electrical loads dedicated to heating and designed to utilize the new wind-diesel system’s excess wind energy is expected to significantly reduce the fuel expense for space heating. 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 Native Village of Shungnak is requesting $525,000 from the Alaska Energy Authority to complete the project through the final design phase and secure the necessary permits to proceed to the construction and installation of the turbine. 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 $ 525,000 2.7.2 Cash match to be provided $ 0 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 6 of 33 7/2/14 2.7.3 In-kind match to be provided $ 27,036 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) $ 552,036 Other items for consideration 2.7.6 Other grant applications not yet approved $ Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $ 6,000,000 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects $ 2.7.9 Estimated Direct Financial Benefit (Savings) The economic model used by AEA is available at www.akenergyauthority.org/REFund8.html. This economic model may be used by applicants but is not required. Other economic models developed by the applicant may be used, however the final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. $ 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. $ undetermined until design is complete SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Native Village of Shungnak’s project management approach for this project is to utilize a team consisting of Native Village of Shungnak’s Tribal Administrator and Bookkeeper, NANA Regional Corporation staff, NANA Development Corporation (NDC) accounting team members, and external engineering consultants. Mr. Sonny Adams will be the Project Manager. His resume is attached. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 7 of 33 7/2/14 Native Village of Shungnak’s Administrator, Glenda Douglas (resume attached), will provide onsite coordination of logistics for the Project Manager, Sonny Adams. Native Village of Shungnak’s Bookkeeper, Gary Tickett (resume attached), will assist the Administrator with receiving, approving, processing and paying invoices from the consultant(s). Mr. Adams will provide oversight to accounting staff and engineering contractors. He will provide coordination of special projects including project development, planning, construction coordination and reporting. The engineering consultant will provide specifications, design and drawings for construction of the wind turbine site and technical input on generation and distribution issues. It is anticipated the engineering consultant will also provide construction administration on new construction performed during the next phase of this project. 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Please fill out form provided below. You may add additional rows as needed. Milestones Tasks Start Date End Date Survey 8/15/15 10/01/15 Design Start 9/01/15 Kick Off meeting 9/01/15 Site Visit 9/08/15 9/10/15 System/Modeling 9/01/15 9/18/15 Civil Design 9/1/15 2/8/16 Foundation Design 9/1/15 2/8/16 Estimating 9/1/15 2/8/16 Power Plant/Turbine Controls 9/1/15 2/8/16 Mechanical 9/1/15 2/8/16 Specifications 9/1/15 2/8/16 Environmental/permits 8/15/15 12/30/15 Review/Conference 9/1/15 3/24/16 Design Complete 3/25/16 Solicitation Package 4/29/2016 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. Personnel: Native Village of Shungnak will ultimately be responsible for successful completion of the project, using partners that have successfully designed and installed similar systems in the recent past. Native Village of Shungnak will utilize the NANA Regional Corporation staff, Sonny Adams, to manage the project and NANA Development Corporation staff, Jameson Fisher, to handle reporting, invoicing, and payment of consultants. Native Village of Shungnak’s Administrator and Bookkeeper will approve and process invoices for payment. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 8 of 33 7/2/14 Consultant: The contracted engineering consultant firm will fully design the road, the site pad, the foundation and the electrical connection to the Shungnak/Kobuk intertie and all system controls. The design will include a thermal “dump load.” Vendor/Equipment: n/a Construction Contractors: n/a 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. Responsibility of the project manager will be to compile and complete progress reports sufficient to complete adequate oversight and grant reporting to AEA. Monthly project coordination meetings will be held with the project team to track progress and address issues as they arise. Two on site meetings with the village will be held. Project Manager and consultant staff will travel to Shungnak to attend and update the IRA at Council meetings at the beginning and end of the project. 3.5 Project Risk Discuss potential problems and how you would address them. During the design phase, we anticipate the following risk factors and potential mitigation factors: 1. Site selection during the design engineering phase must be developed carefully. 2. Partnerships, cooperative agreements and equipment scheduling for major equipment needs will be considered in order to contain costs for this installation. 3. Inaccurate or Incomplete Power Plant Data. We intend to mitigate this by developing a data collection protocol on power plant performance and reconstructing historical performance where we may have data gaps. 4. Technology Performance. Northwest Alaska has some of the harshest climatic environments. Technology may not perform as intended. We intend to mitigate this with collaboration with Alaska Village Electric Cooperative, the Alaska Center for Energy and Power, and the technology providers to assure that the technology is appropriate and adapted for the targeted environment. 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. NRC will utilize NDC to provide accounting services for this grant and project. Project accountant will be Jameson Fischer. (Resume is attached) Native Village of Shungnak’s bookkeeper, Gary Ticket, will process invoices and payments from the grant to Project Manager (NRC). 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. NDC’s Enterprise Resource Planning (ERP) system is Deltek Costpoint. The Finance/Accounting department is the primary user of the ERP system. Within Costpoint, NDC will set up a project for this grant and Jameson Fisher will be the primary accountant involved with accounting for the grant within the ERP system. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 9 of 33 7/2/14 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. As noted above, NDC will set up a project in the accounting system for this grant. In the project setup, they will only allow direct charges – no overhead will be able to be charged. Additionally, all costs will be subject to NDC’s normal accounts payable process and the associated controls including: 1. Obtaining necessary approvals, 2. Review of coding for all charges to ensure they are reasonable and charged to the correct projects and accounts, 3. Review of supporting documents (invoices, etc.), 4. All checks require dual signatures. 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. A MET tower was erected at the proposed wind turbine site in Shungnak from August 2013 to August 2014. To date, the wind resource appears beneficial with a measured average wind speed at 30 meters of 5.27 m/s. Based on this data, Windographer software predicts a Class 3 (fair) wind resource. Measured turbulence to date is also acceptable with a mean turbulence intensity of 0.10 at 15 m/s, classifying the site so far as IEC 61400-1 3rd edition as a category C. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The Alaska Village Electric Co-Op provides electricity to Shungnak via diesel generations with a total capacity of 1,210 kilowatts. (from NRC website - Shungnak) Based on review of filings with the Regulatory Commission of Alaska (RCA), the diesel electric generation plant in Shungnak, that also provides power to Kobuk, consists of the units shown in Table 1. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 10 of 33 7/2/14 Table 1: Shungnak Power Generation Units Engine Size (kW) John Deere 6619 202 CAT 3406 297 Detroit Diesel S60 314 Cummins KTA1150 397 The commissioning dates for the generators in Shungnak are as follows: Position 1-John Deere 6619a – 1991 (Originally installed in Noatak in 1985) Positon 2-Caterpillar 3406 – 1984 Position 3-vacant Position 4-Detroit Diesel Series 60 - 1998 Position 5-Cummins KTA 1150 – 1991 The engine control panels are: Position 1- Emerson s/n 47G23 Position 2- Simplex s/n 24575 Position 3- n/a Position 4- Control Power s/n 1656-8 Position 5- Control Power s/n 1656-7 The generator controls are all manually operated. They have analog metering, ice cube (plug-in) relays, and include modules for load share and paralleling between units. The AVEC Shungnak power plant was energized in 1971, with three generation units in the Butler building. The plant now has two units in the Butler Building and two additional generation modules, (positions 4 &5). All the engine controls are in the Butler building . Figure 1: Shungnak power plant, 2011 The diesel generation efficiency for Shungnak in 2013 was 14.10 kWh/gal. The electric energy in Kobuk is produced at the diesel generation plant in Shungnak and delivered through the existing Shungnak-Kobuk intertie. The intertie is approximately 7 miles in length and has been in existence for about 30 years (AVEC Kobuk). Occasionally, the intertie experiences outages. In 2010 data provided by AVEC, an outage that occurred from 5:30 pm on December 19, 2010, until 7:45 pm on December 25, 2010, was evident by an average reduction in Shungnak generation of 72.5 kW, based on the projected load had the outage not occurred. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 11 of 33 7/2/14 During an outage, Kobuk must self-generate electricity with their existing diesel plant. This plant is reported to have a capacity of 75 kW (NWAB Kobuk Comp Plan). AEA’s Power Cost Equalization Program (PCE) report for FY 2013 indicates that Kobuk purchased 624 MWh of energy. PCE data from 2013 indicates that the average demand in Kobuk is 57.5 kW. The Alaska Department of Commerce, Community, and Economic Development recently allocated approximately $1.5M to the Northwest Arctic Borough for improvements to the Shungnak-Kobuk intertie. It is assumed that the existing intertie will continue to have the capacity to supply the electric energy needs of Shungnak-Kobuk (from Cosmos Hills study, but edited for updates). The combined annual generation for Shungnak-Kobuk for the past five years is shown in Table 2. (AIDEA PCE). Table 2: PCE Electric Demand Shungnak PCE Ambler PCE Combined PCE FY Year Energy Generated, kWh Avg Power, kW Energy Generated, kWh Avg Power, kW Energy Generated, kWh Avg. Power, kW 2008 1,483,862 169 1,321,573 151 2,805,435 320 2009 1,477,747 169 1,245,599 142 2,723,346 311 2010 1,578,459 180 1,249,161 143 2,827,620 323 2011 1,546,541 177 1,314,441 150 2,860,982 327 2012 1,588,139 181 1,343,144 153 2,931,283 335 Escalation Rate 1.8% 0.9% 1.4% The electrical demand in both communities has risen over the past several years. It is assumed this trend will continue at a slightly conservative rate of 1% for both communities. The projected generation for the next 50 years is shown in Table 3. Table 3: Projected Energy Demand Shungnak-Kobuk, kWh Ambler, kWh Combined, kWh FY 2013 (year 0) 1,606,819 1,329,832 2,936,651 FY 2038 (year 25) 2,060,636 1,705,419 3,766,056 FY 2063 (year 50) 2,642,626 2,187,084 4,829,710 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 12 of 33 7/2/14 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. The existing Shungnak power plant produces electrical energy by burning diesel fuel in the diesel engine-generators. The proposed wind turbine system will reduce power plant fuel usage. In the picture shown here, a photovoltaic array is used as a renewable energy source. The array is a 7.49kW array. Kobuk utilizes photo-voltaic arrays as a renewable energy source. The array shown here is a 7.38kW array. Figure 2: Photovoltaic array as an energy source in Shungnak Figure 3: Photovoltaic array used in Kobuk Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 13 of 33 7/2/14 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. According to Statistical Report of the Power Cost Equalization Program, Fiscal Year 2013, and from AVEC, the diesel power plant generated 1,732,010 kWh in 2013, with an average annual load of 204 kW. The peak load of the Shungnak/Kobuk system is estimated to be about 340 kW. During 2013, 122,825 gallons of fuel was used for power generation in Shungnak/Kobuk, at an average diesel generation efficiency of 14.10 kWh/gallon. The proposed installation of a wind turbine will reduce the fuel usage as well as provide energy for additional village heat loads. 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 Renewable energy technology description Wind power is the renewable energy option for Shungnak. An EWT DW52/54-500kW model turbine with a 52 meter rotor is proposed for Shungnak. The DW 52/54-500kW was developed in response to market demand and designed according to EWT's proven direct drive technology. This turbine is specifically designed for operating in low/moderate wind speed areas. Streamlined production and cost efficiency make EWT turnkey projects solutions highly attractive, delivering an excellent energy yield which ensures an optimal return on investment. Optimum installed capacity The system we plan consists of one (1) DW 52/54-500kW turbine to operate with the existing diesel plant as a wind-diesel hybrid power system. Installed wind power capacity will be 500kW. Anticipated capacity factor HOMER software was used to simulate conditions at Shungnak with one DW 52/54-500kW wind turbine running in conjunction with the existing power plant. HOMER calculates gross energy production with no allowance for power plant downtime, turbine or generator maintenance, equipment curtailment or any other reason. Regarding gross production for this wind system: - Renewable fraction from HOMER: 41% - Capacity factor on net wind production: 27.1% Anticipated annual generation HOMER software estimated gross annual wind production to be 1,200MWh with 434MWh excess electrical energy. Anticipated net annual wind production is 766MWh. Anticipated barriers Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 14 of 33 7/2/14 The only barrier we anticipate is the migratory bird window that will be observed. Otherwise, no barriers to successful installation and integration of a wind turbine in Shungnak are expected. Basic integration concept The integration design concept is comprised of one DW52/54-500kW turbine, a secondary load boiler to augment an existing diesel generator heat recovery loop (if deemed necessary after further analysis), a secondary load controller to manage the “dumping” of excess electricity (if necessary), a SCADA system to manage the combine operation of the diesel generators and wind turbine, and a system to enable remote monitoring and control of the wind-diesel hybrid power plant. Delivery methods The wind-generated electrical energy will be delivered utilizing a new one-mile distribution line connecting to the existing electrical distribution grid. 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 site for turbines is owned by NANA Regional Corporation. NRC will be giving to Shungnak site control through a long term lease and permit. A letter of commitment from the NRC CEO is attached below indicating this agreement. Native Village of Shungnak will add the surveyed road path to the site to their BIA roads inventory. This will allow for future road maintenance and improvements on this access road utilizing BIA Tribal Transportation funds. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 15 of 33 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 The following permits and/or authorizations will be necessary for installation of the wind turbine(s):  USACE Section 404/401 Wetlands Permit and Water Quality Certification – expected to take 90 days, dependent upon the ability to assess the potential for wetlands during an appropriate time of year.  Title 16 Fish Habitat Permit – This permit takes between 90 and 120 days to obtain. W e will consult with ADF&G to determine whether or not any streams impacted by the project contain resident fish. If resident fish are determined to be present in streams, then a Title 16 Fish Habitat Permit will be pursued. Project culverts would be designed for fish passage.  SHPO “No Historic Properties Affected” 60-90 days will be allotted for a consultation to be conducted for this topic. If SHPO determines that cultural and historic resources could be located here, archaeological monitoring will be conducted during construction of the project.  Alaska Pollutant Discharge Elimination System (APDES), Construction General Permit (CGP) and Notice of Intent (NOI). – Seven days after filing the Notice of Intent and the Storm Water Pollution Prevention Plan, the permit coverage begins. Permitting timeline is 30 days.  Vegetation Clearing Not Permitted between May 20 and July 20 – We will observe appropriate clearing timelines. Compliance with this requirement involves only observing the appropriate clearing dates.  FAA Notice of Proposed Construction (Form 7460) Notice of Proposed Construction or Alteration – Filing for this permit is done online and not less than 30 days prior to the intended start of construction. Intentional follow-up with FAA for the permit may be required. Permitting timeline is 60 days.  Northwest Arctic Borough Title 9 permit – 20 day public comment period, permitting timeline 45 days  NANA Regional Corporation Lands Department permit – 10 days 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 The environmental permitting steps below are based on the publication Alaska Wind Energy Development: Best Practices Guide to Environmental Permitting and Consultations, a study done by the URS Corporation for the Alaska Energy Authority in 2009. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 16 of 33 7/2/14 Alaska Department of Environmental Conservation: Alaska Pollution Discharge Elimination System - State regulations (18 AAC 83 APDES) require that all discharges, including storm water runoff, to surface waters be permitted under the Alaska Pollutant Discharge Elimination System (APDES) permit program, which aims to reduce or eliminate storm water runoff that might contain pollutants or sediments from a project site during construction. The construction of one or more wind turbines, and the connecting access road and power line, in Shungnak would likely disturb one acre or more of soil, and thus must be permitted under the State of Alaska’s Construction General Permit (CGP) and have a Storm Water Pollution Prevention Plan (SWPPP). The construction contractor must submit a Notice of Intent (NOI) to Alaska Department of Environmental Conservation (ADEC) before submitting a SWPPP. The DEC issues the final APDES permit for the project after review and public comment periods. US Fish and Wildlife Service and National Marine Fisheries Service: Shungnak is located in an area that is mapped by the Anchorage Fish and Wildlife Field Office as “No Consultation Necessary” for listed species under the Endangered Species Act. This map is called “ESA Listed Species Consultation Guide – Anchorage Fish and Wildlife Field Office.” The legend states “If your project is located within Solid Green on this map, there are no listed species present within your project area and no consultation is necessary.” Native Village of Shungnak must also be aware of USFWS regulations and guidance under Migratory Bird Treaty Act, which prohibits the taking of active bird nests, their eggs and young. USFWS has developed “Bird Windows” statewide that prohibit clearing and construction activity. The bird window in the Shungnak area is May 1 to July 15 except for Canada geese and swan habitat where the window begins April 20. Clearing before or after these dates is allowed. Clearing activity or construction activities with the potential to disturb nesting habitat during the window is not allowed. The USFWS Wind Turbine Guidelines Advisory Committee developed guidelines and recommendations for wind power projects to avoid impacts to birds and bats. These recommendations were sent to the Secretary of the Interior in March 2010 and should be referred to during design and construction. Federal Aviation Administration: Determination of No Hazard to Air Navigation – Native Village of Shungnak may be required to file an FAA Form 7460-01 (Notice of Proposed Construction or Alteration), as the proposed wind turbine site(s) may be within the 1:100 airspace volume extension from the Shungnak Airport. Obstruction lighting on the wind turbine(s) is likely to be required. Consultation with the FAA to determine the appropriate obstruction lighting will be required. State Historic Preservation Office (SHPO) consultation – The project design consultant will complete a consultation under Chapter 41.35 Article 1 – Alaska Historic Preservation Act. US Army Corps of Engineers: The US Army Corps of Engineers (USACE) requires the placement of fill in “waters of the United States,” including wetlands and streams, under Section 404 of the Clean Water Act (CWA). Because much or all of the proposed wind turbine site(s) in Shungnak may be located on wetlands, Native Village of Shungnak must receive a Section 404 permit from the Alaska District USACE. Environmental Approach: If it is determined through the permitting process a determination is required, Contractor will organize a pre-application meeting to be coordinated through the Alaska Department of Natural Resources for the Shungnak Wind-Diesel Project. All agencies, including federal agencies, will be asked to participate. The meeting will identify and discuss appropriate permit issues and provide agency Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 17 of 33 7/2/14 perspective on the proposed development. Discussions, if required, should include actions to avoid, minimize and mitigate wetlands impacts. Preliminary concerns for impacts to possible cultural sites will be identified. Results of this agency pre-application meeting will be a three to five page meeting report summarizing agency concerns, issues and possible mitigation or compensation proposals. This will be as comprehensive as possible, but may not identify all permits required for project development given the preliminary nature of the development proposal. 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 design and permitting phase. We are requesting $525,000 to complete the design and permitting phase. This includes geotechnical work, as well. NANA Regional Corporation funded the MET tower placement in Shungnak and the ensuing wind resource report. After one year of collecting wind data with a 95% collection rate, the report indicates the wind resource is Class 3 and a wind turbine option is economically feasible. We estimate the completed (constructed) project, depending on final design and shipping charges, will cost $6M. This price includes the purchase and shipping of the turbine and was extrapolated based on the construction of two 900kW EWTs in Kotzebue as obtained from KEA. 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.) We expect that AVEC will apply for construction of the wind turbines and will take ownership of and maintain the project when built. (See AVEC letter of support, attached below.) Depending on the turbine model chosen for this site, maintenance visits could be as few as once a year. The turbine configuration for Shungnak will require, as a conservative estimate, an annual maintenance cost of $7,000. This cost will be funded by ongoing energy sales in the village. 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 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 18 of 33 7/2/14 The utility will be the owner of the project. They will set their rates based on total cost of generation and distribution. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 19 of 33 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. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Wind Resource – 5.3 m/s documented (class 3) 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 4 generators ii. Rated capacity of generators/boilers/other 202KW, 297KW, 314KW, 347KW iii. Generator/boilers/other type iv. Age of generators/boilers/other Deere (1985), Cat (1984), Detroit (1998), Cummins (1991) v. Efficiency of generators/boilers/other 14.10kWh/gallon 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] 1,732,010kWh ii. Fuel usage Diesel [gal] 122,825 gallons/year Other iii. Peak Load 340kW iv. Average Load 204kW v. Minimum Load 143kW (average) vi. Efficiency 14.10kWh/gallon vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 20 of 33 7/2/14 ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] 500kW Wind b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 2,160,000kWh (HOMER) 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 $6,000,000 b) Development cost $ 525,000 c) Annual O&M cost of new system $ 7,000 d) Annual fuel cost Project Benefits a) Amount of fuel displaced for i. Electricity 67,000 gallons ii. Heat 3,500 gallons iii. Transportation b) Current price of displaced fuel $5.10/gallon c) Other economic benefits Reduced O&M costs, reduced air emissions d) Alaska public benefits Reduce Power Cost Equalization subsidies Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 21 of 33 7/2/14 Power Purchase/Sales Price a) Price for power purchase/sale Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.09 Payback (years) Approximately 18 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. Energy security for Shungnak cannot be understated and must be emphasized. The very high price of Shungnak diesel generator fuel is at the heart of the future of electric power generation for the area thus making the construction of renewable energy sources vital. For this grant application, the cost to benefit ratio is considered conservative and this ratio will greatly improve (increase) if even moderately higher fuel prices are seen in Shungnak. In the benefit area of this grant application, about 70,000 gallons total (rounded) of displaced fuel is estimated and is shown. The price per gallon of displaced fuel is also shown as $5.10 and is extracted from the February 2014 PCE Statistical Report. For Shungnak, this price may be a conservative number as explained below. (The explanation below is derived from the Cosmos Hills Hydro Feasibility Study and Conceptual Design Report as prepared for Alaska Village Electric Corporation (AVEC), 18 April 2014, Section 5.3 – Existing Energy Market, pages 39-43. This report was accepted by AEA.) AVEC provided fuel purchase data for Shungnak-Kobuk for subject report. This data, Shungnak Table 5-7 in Section 5.3 of the report, includes the delivered location, delivery type, date, quantity (gal), and unit cost ($/gal) of diesel fuel from 2004 through 2012 for Shungnak. The Shungnak table indicates that for the years 2004-2012, 57% of the Shungnak fuel is delivered by air (no roads to Shungnak) and the remaining quantity, 43%, by barge up the Kobuk River. Additionally, the report indicated that all Shungnak fuel delivery for 2011 was by air and the resultant cost paid for this fuel was $6.53/gallon thus representing a very large increase (28%) in fuel cost compared to the $5.10/gallon in this grant application. More importantly, f or 2013, $7.50/gallon is the actual price paid by AVEC (a 47% increase). Exacerbating the problem is over the last decade or so, AVEC has experienced fluctuating, but increasing instances, when the Kobuk River has been too low to receive barges thus forcing the fuel deliveries to be transported by air at a significant additional cost. For 2013, local Shungnak residents have reported that the river was low enough for villagers to walk across – an unusual situation. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 22 of 33 7/2/14 SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following:  Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project  Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate)  Potential additional annual incentives (i.e. tax credits)  Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available)  Discuss the non-economic public benefits to Alaskans over the lifetime of the project The potential annual fuel displacement is projected to be approximately 70,000 gallons over a 20- year project lifetime which equates to $357,000/year based on $5.10 per gallon. There is significant excess electricity in the proposed system which could be used to meet the thermal needs of Shungnak. One 500kW EWT will produce approximately 434,000kWh per year of electricity that cannot be used for the primary load. It is available to be used for heating commercial buildings, such as the school in the community. If all the excess electricity was used for thermal energy, the savings of diesel fuel would be approximately 3,500 gallons per year. Over 20 years the savings would add up to a total of $357,000. There are numerous non-economic public benefits to Northwest Alaska over the lifetime of this project. An important benefit of installing the proposed wind turbines would be to reduce the direct and indirect costs of using fossil fuels in the region. This project could help stabilize energy costs and provide long-term socio-economic benefits to village households. Locally produced, affordable energy will empower community residents and may help avert rural-to-urban migration. This project would have many environmental benefits resulting from a reduction of hydrocarbon use. These benefits include: 1. Reduced potential for fuel spills or contamination during transport, storage, or use (thus protecting vital water and subsistence food sources); 2. Improved air quality; 3. Decreased contribution to global climate change from fossil fuel use; and 4. Decreased coastal erosion due to climate change. 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. 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 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 23 of 33 7/2/14  Commitment to reporting the savings and benefits Business plan structures and concepts which may be considered: The wind turbine would be incorporated into AVEC’s power plant operation. Local plant operators provide daily servicing. AVEC technicians provide periodic preventative or corrective maintenance and are supported by AVEC headquarters staff, purchasing, and warehousing. How O&M will be financed for the life of the project: The costs of operations and maintenance will be funded through ongoing energy sales to the villages. Operational issues which could arise: There are no known operational issues. Operational issues of the proposed turbine and connecting distribution line would be determined. Operating costs: Different turbines have different operating costs; however, the estimated annual O&M cost is $7,000. Commitment to reporting the savings and benefits: Native Village of Shungnak is fully committed to sharing the savings and benefits accrued from this project with their shareholders, and sharing the project information with AEA. 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 MET tower located on site has been used for observing wind speed over the course of 12 months. Data was collected and Windographer software was utilized to produce the wind report. Design work will begin immediately upon award of the grant. No other grants have been awarded to date to support this project. 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 Letters of Support and Commitment are attached below in Appendix 3. No letters of opposition have been received. 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 NRC funded the MET tower in Shungnak and the year-long data collection. AEA funds will be utilized to design a wind turbine installation to include a road, pad, and connection to the existing power distribution system, dump load and control. NRC project management team will work with Native Village of Shungnak, the contracted engineering consultant firm, and AVEC to interface this wind system with an upgraded power plant. NRC will give in-kind project management time in the amount of $22,500. Native Village of Shungnak will give in-kind Administrator and Book keeper time in the amount of $4,536. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 24 of 33 7/2/14 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. Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final Design and Permitting, and IV. Construction and Commissioning). Please use the tables provided below to detail your proposed project’s budget. Be sure to use one table for each phase of your project. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA at 907-771-3031 or by emailing the Grants Administrator, Shawn Calfa, at scalfa@aidea.org. Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. ) $ $ $ Project Management 4/29/2016 $25,000 $27,036 $52,036 Village Meetings & Site Visits 9/10/2015 $12,000 $ $12,000 Refine Electric and Heating Load Assessment 9/18/2015 $5,000 $ $5,000 Power System Assessment and System Modeling 9/18/2015 $8,000 $ $8,000 Site Assessment (Land, ROW, etc.) 10/15/2015 $10,000 $ $10,000 Desk Top Geotechnical Study 9/30/2015 $10,000 $ $10,000 Construction and O&M Cost Estimate 2/25/2016 $12,000 $ $12,000 Geotechnical Investigation 12/17/2015 $125,000 $ $125,000 Permitting and Environmental Review 12/30/2015 $24,000 $ $24,000 Final Design 3/25/2016 $294,000 $ $294,000 $ $ $ TOTALS $525,000 $27,036 $552,036 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Project Management – NANA Regional Corporation’s Project Manager, in harmony with the engineering consultant, will oversee and manage the design effort. The project manager will serve as the primary point of contact and will be responsible for overall team quality control, project coordination and time control. Project time control will involve progress tracking and comparison with the project schedule. Progress reporting is proposed and written progress reports will be provided. Village Meetings & Site Visits –- Conduct village meetings and site visits as necessary to understand the Shungnak infrastructure, seek site specific information, inform stakeholders of progress as well as ascertain public opinion of wind turbine system planned. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 25 of 33 7/2/14 Refine Electric and Heating Load Assessment –- Office-based research and field investigation along with a visit to Shungnak by engineering consultant is the primary objective of this task. Consultant will verify all information collected via phone and office interviews, identify and document heating loads and estimate fuel and electrical usage, assess and document the diesel power plant generators, switchgear, distribution, controls, and bulk fuel and meet with Utility, Tribe and City Administrator to gather other pertinent information for a successful project. Power System Assessment and System Modeling – W ill include an in-depth modeling analysis that will depict the power quality impact that a hybrid power system will have. Consultant will analyze upgrades to the diesel power plant controls and switchgear necessary for the integration of wind power. Site Assessment (Land, ROW, etc.) – Consultant will identify wind power project site and electrical power distribution routing for Shungnak and conduct an analysis to determine land ownership and identify any Right-of-Way issues. Desk Top Geotechnical Study – Engineering consultant will conduct a geotechnical desk top study of the wind power project site. This will include a survey of known geotechnical conditions around Shungnak and specifically at the turbine site. Additionally, an analysis of possible gravel sources will be included. Construction Cost and O&M Cost Estimate – Consultant will prepare cost estimates for the project based on the continuing engineering design. The estimate will include turbine costs, site development costs, engineering estimates and listing any ancillary equipment, mobilization costs, and other costs. In addition, consultant will estimate the expected system operations and maintenance costs post system installation. Geotechnical Investigation – A full geotechnical investigation will be conducted and a report will be prepared by a professionally registered geotechnical engineer. This will include procurement of a drilling contractor with a geotechnical engineer on site during drilling in Shungnak. A drilling rig will be delivered to Shungnak and, upon completion, will be returned to the place of origin. Permitting and Environmental Review – Investigations will include wetlands and wildlife habitat desk-top studies, cultural resource surveys, site-control and geophysical hazard risks in the wind turbine site area, and along proposed routes for electric power lines and project access roads. Consultant will identify potential environmental permits and provide recommendations on permit acquisition strategies and will assist in procuring permits to the extent that there is available budget. Final Design – Engineering consultant will author a final design that includes geotechnical, permitting, environmental, electrical, mechanical, civil, structural and foundation design as well as all surveying, power plant control interface, specifications and bidding documents. Consultant will include a final cost estimate for the project. We will coordinate with power plant owner for any upgrades necessary to provide a fully functioning design. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 26 of 33 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 27 of 33 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 28 of 33 7/2/14 Attachment 1: Site Location Map Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 29 of 33 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 30 of 33 7/2/14 Attachment 3 Letters of Support and Commitment NANA Regional Corporation Alaska Village Electric Cooperative Native Village of Shungnak (Resolution*) *Resolution will be updated at the October 2014 Council meeting to read: “Village of Shungnak hereby approves NANA Regional Corporation’s effort to apply for funding of a final design and permitting project” Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 31 of 33 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 32 of 33 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 33 of 33 7/2/14