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HomeMy WebLinkAboutREF Round 8 Solar Application 9-20-14KOTZEBUE ELECTRIC ASSOCIATION INC. September 4, 2014 BOARD RESOLUTION #1194 A RESOLUTION REQUESTING AUTHORIZATION TO APPLY FOR FUNDING THROUGH THE STATE OF ALASKA RENEWABLE ENERGY FUND WHEREAS: Kotzebue Electric Association Inc. (KEA) is a non-profit corporation in good standing with the state of Alaska, all of its lenders, and has met any and all of its tax obligations, and WHEREAS: It is the desire of KEA to seek funding for support of renewable and other projects that lead to the reduction of diesel fuel usage such as wind, solar and geothermal and projects, and WHEREAS: The cost of solar technology has dropped significantly so that solar energy now has the ability to allow KEA to distribute and use solar energy production of electricity, and contribute to meet and exceed environmental compliance, and WHEREAS: Increased fuel costs and environmental regulation issues have created dramatic cost increases for the utility that have significantly contributed to the electric rates for our members, and NOW THEREFORE BE IT RESOLVED: That Kotzebue Electric Association Inc. hereby authorizes the corporation to apply for funds from the State of Alaska Renewable Energy Fund, and also authorizes General Manager/CEO Brad Reeve and or his designee to represent KEA for the purpose of applying for funds from the State of Alaska Renewable Energy Fund. Cra' cConnell, President Charlie Gregg, Secretary I, Charlie Gregg, Secretary, of Kotzebue Electric Association, Inc, do hereby certify that the above is true and correct excerpt from the minutes of the Board of Directors of the Kotzebue Electric Association, Inc., held on the 4's day of September 2014. Renewable Energy Fund Round VIII � Grant Application - Standard Form ®WEENEEKILDENERGYAUTHORITY Type of Entity: I Fiscal Year End: Non Profit Electric Cooperative I December 31 Tax ID # Tax Status: ❑ For -profit ® Non-profit ❑ Government (check one) Date of last financial statement audit: December 31,2013 Mailing Address: Physical Address: PO Box 44 Kotzebue, Alaska Kotzebue, Alaska 99752 Telephone: Fax: Email: (907) 442-3491 (907) 442-2482 B_reeve@kea.coop 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Title: Brad Reeve KEA General Manager Mailing Address: PO Box 44 Kotzebue, AK 99752 Telephone: Fax: Email: (907) 442-3491 (907) 442-2482 b_reeve@kea.coop 1 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Matt Bergan (907) 442-3491 (907) 442-2482 M_bergan@kea.coop AEA 15003 Page 2 of 27 7/2/14 Renewable Energy Fund Round VIII ,. Grant Application - Standard Form ®4IIIIIIIIIIIIIIEDENERGY AUTHORITY 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/REFundS.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 of27 7/2/14 Renewable Energy Fund Round VIII NID Grant Application - Standard Form ®® ENERGY AUTHORITY 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, 100 Kilowatt Solar Array for Kotzebue 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. Project will be co -located with existing wind farm, located approximately 4 miles southeast of Kotzebue at 66°50'18.22"N- 162°33'20.05"W 2.2.2 Community benefiting — Name(s) of the community or communities that will be the beneficiaries of the project. Kotzebue. Alaska 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type ❑ Wind ❑ Biomass or Biofuels (excluding heat -only) ❑ Hydro, Including Run of River ❑ Hydrokinetic ❑ Geothermal, Excluding Heat Pumps ❑ Transmission of Renewable Energy ® Solar Photovoltaic ❑ Storage of Renewable ❑ Other (Describe) ❑ Small Natural Gas 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre -Construction Construction ❑ Reconnaissance ® Final Design and Permitting ❑ Feasibility and Conceptual Design ® Construction AEA 15003 Page 4 of 27 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form © ENERGY AUTHORITY 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. While it is well understood that Solar PV panels provide little energy in the arctic during the winter, there is a solar resource during the shoulder seasons and Kotzebue experiences 35 days of constant daylight during the summer. Recent declines in prices for PV panels mean that there is sufficient power produced during the spring, summer and early fall months to justify the cost of installing a solar array in Kotzebue. Using NREL's September 2014 release of PV Watts's photovoltaic modeling software, an optimized estimate of the useful power that would be produced by a solar array was prepared. It appears that the PV panels can be obtained for about $0.80 per Watt. KEA has successfully worked with piling systems on its wind site since 1996 using both standard and freeze -back pilings to install wind turbines. KEA's significant experience with foundations on the site will allow the use of a piling system to be used for a solar installation which will reduce design costs. The site has had 3 extensive geophysical surveys that will be relied upon to assist in the foundation design and help minimize costs. Inverters can be installed in the existing wind farm structures. 2.6 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.) Based on NREL PV Watts modeling, this project is projected to produce about 140,000 KWh per year. This will reduce diesel fuel consumption by about 9,720 gallons per year, and create local jobs for installation and maintaining the PV array. 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. We are requesting $384,730 for purchase of the PV panels, wiring, foundation, racking system, and inverter. KEA will provide the site, the equipment for the foundation system, and the skilled labor required to install the PV panels 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 $ 384,730 2.7.2 Cash match to be provided $ 64,448 2.7.4 Other grant funds to be provided $ 0 AEA 15003 Page 5 of 27 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 4001D ENERGY AUTHORFY 2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $ 449,178 Other items for consideration 2.7.6 Other grant applications not yet approved $ AEA 15003 Page 6 of 27 7/2/14 Renewable Energy Fund Round VIII GOLD Grant Application - Standard Form �fMMC--)ENERGY AUTHORITY 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 $ 449,178 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) $ 667,996 The economic model used by AEA is available at www.akenergyauthority.orgIREFund8.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. 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. Brad Reeve, General Manager KEA AEA 15003 Page 7 of 27 7/2/14 Renewable Energy Fund Round VIII GEED amV, Grant Application - Standard Form 40MED ENERGY AUTHORITY 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 Review information, data and reports on existing solar projects Evaluate successful solar projects and products to develop a list of potential suppliers 1111115 4/1/15 Identify PV panel, racking and foundation suppliers Survey PV suppliers, evaluate Arctic readiness, select supplier or suppliers 3/1/15 7/1/15 Purchase PV modules, racking system and inverters. Issues "Purchase Orders" for hardware including PV panels, racking system and inverters 7//15/15 7/31/15 Purchase, Foundation system Issues "Purchase Orders" for Foundation system and other associated hardware 7//15/15 7/31/15 Site Preparation Gravel Pads 7/1/15 8/15/15 Balance of Plant Installations Distribution wiring will be buried for the panels. Breaker panels, transformer connections metering and other communications will be installed 7/31/15 9/15/15 Foundation Installation The foundation will be installed when the ground is frozen to minimize damage to the tundra 3/1/16 3/31/16 Install racking, PV panels and inverters The majority of the system will be installed. 3/15/16 4/15/16 Finish balance of plant installation Final system and grid connections will be done 4/15/16 4/30/16 Commissioning Inspect and finalize system operation 511116 5/31/16 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 The majority of the project will be completed by existing KEA staff. KEA has worked with Kikiktagruk Inupiat Corporation (KIC) the local native village corporation of Kotzebue on all of its prior work with foundations. KIC owns a drill rig that has been used in the installation of the pilings throughout the wind site. AEA 15003 Page 8 of 27 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form ®EENERGYAUTHORITY 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. The project will be connected to the KEA SCADA system for power and operational observation. This would be a minor extension of the existing KEA wind system and will connect to the overall power reporting system of the utility. KEA has done several projects with the AEA and is comfortable reporting on grant projects. The reporting is done in a team fashion with Jessi Hampton a CPA doing the financial reporting. Matt Bergan P.E. will provide reporting on the technical and operational aspects of projects, and Brad Reeve will report on the administrative aspects of the project. Alternate contact: Matt Bergan (907) 442-3491, m_bergan@kea.coop AEA 15003 Page 9 of27 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form ®® ENERGY AUTHORITY 3.5 Project Risk Discuss potential problems and how you would address them. 1. Installing and operating large PV array in the Arctic There is minimal risk in a project of this technology as long as the equipment selected is rated for arctic conditions. There are a number of existing installations in the area that have done well in local conditions. KEA also has experience with a 3 kW project done with the NW Arctic Borough School District at the Alaska Technical Center that demonstrated the stability of a solar installation in cold weather and severe storm conditions. 2. Blockage of PV panels from snow -Panels will be elevated off the ground sufficient to allow snow to blow under panels without accumulation. Due to the windy winter conditions and prevailing direction that are typical in Kotzebue snow drifts accumulate on the western side of buildings and structures that are elevated tend to not accumulate drifting snow. With the prevailing winds from the east and the panel system facing the south there will be a low possibility of significant snow blockage. Panel angle in winter will be near vertical, allowing gravity and wind to remove snowfall on panel surface. 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. Jessi Hampton will be the Project Accountant. KEA has a successful track record with working collaboratively with AEA and Jessi has several years of grant reporting she has done on prior projects. Accountant contact: Jessi Hampton (907) 632-0777, jessi@sunmountaincpa.com 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 accounting system that will be used is the KEA accounting system. Grant reporting will be done through a work order system and Jessi Hampton a CPA will provide overall accounting supervision. 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. KEA has an established record of financial and administrative oversight with grants and grant reporting. As an applicant, KEA has the administrative and financial management systems in place to comply with the standards set forth in the grant agreement. Annual audits are also a requirement of the Cooperative. AEA 15003 Page 10 of 27 7/2/14 Renewable Energy Fund Round VIII ®ED Grant Application - Standard Form ® ENERGY AUTHORITY 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. Solar photovoltaic power opportunity for Kotzebue has been calculated using NOAA data, which is based on the incoming solar resource at the top of the atmosphere and average cloud cover. This data indicates expected information such as there is very little solar energy available during the late fall and winter, but also that there is a good resource available April -Sept. Variable T F M r A�'IM J d i A S O �T i D Insolation kWh/m21da � 0.02 0.41 1.39�3.09 4.76 5.92 4.89 3.27 2.06 0.84 _y. 0.10 0.00 Clearness, 0 -1 OS2 These data were obtained from the NASA Langley Research Center Atmospheric Science Data Center; -Ness et al. 2002 Notes: Change Utilizing National Renewable Energy Laboratories PV Watts with the above data, the PV array would provide sufficient energy to justify the cost with an investment return of 10 Y2 years. 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. Kotzebue Electric Association currently operates a Wind -Diesel plant to serve an average 2,450 kW load, with diesel plant efficiency of 14.43 kWh/gallon. The diesel plant consists of four (4) — 710 EMD's, and one (1) 3516 Caterpillar plus a wind farm of 2.94 MW. Energy Storage and use of excess wind for heating loads are planned but not yet implemented. 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. Diesel Fuel and Wind. Proposed project is expected to reduce diesel fuel consumption by approximately 9,720 gallons per year per AEA's Benefits calculation sheet. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. AEA 15003 Page 11 of 27 7/2/14 Renewable Energy Fund Round VIII ®® Grant Application - Standard Form ® ENERGY AUTHORITY KEA currently provides electricity for the residents and businesses located in Kotzebue. This project should have no effect on the customers, as power generated by the PV panels will be blended with existing sources. 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: 100 kW PV array co -located with existing wind farm near Kotzebue. • Optimum installed capacity Solar arrays are stand-alone units. Scales of economy begin at 1 MW. KEA has chosen 100 kW to have a measureable impact on diesel fuel consumption and provide a basis for other rural utilities to help evaluate their solar capability. • Anticipated capacity factor 100kW PV plant will yield a 16.0% capacity factor per data generated by NREL PV Watts. • Anticipated annual generation Using NREL's PV Watts modeling software, our project is estimated to produce 140,257 kW - hours of total annual production. • Anticipated barriers Long term operation may be affected by arctic climate related issues —degradation caused by thermal cycling, wind damage, snow blowing into electrical systems. • Basic integration concept The maximum output from KEA's proposed PV panels is 90KW which is less than 5% of KEA's average load; this should not cause significant integration issues. Compatible inverter parameters will be selected to allow direct integrate with KEA distribution grid. • Delivery methods Power from PV array will be integrated into existing wind farm power delivery system 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. PV array will be installed at existing wind site, on land currently leased from KIC. Current lease terms extend through 2027. KEA anticipates no problem extending lease another 15 years beyond that date. 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 AEA 15003 Page 12 of 27 7/2/14 Renewable Energy Fund Round VIII ®� Grant Application - Standard Form dENIE) ENERGY AUTHORITY Environmental Impact Statement completed in 1996. US Fish and Wildlife migratory study completed 2003. Army Corp of Engineers wetland impact study completed 2011. Update to existing site reviews will be performed in 2015. 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 • Identifv and discuss other potential barriers The site is leased from Kikiktagruk Inupiat Corporation with a 15 year extension completed in 2012. The site has been reviewed extensively and an Environmental Impact Statement was done in 1996 when the first wind turbines were installed. The site has also been reviewed over a 5 year period by the US Fish and Wildlife for conflicts with waterfowl migration. In 2011 the site was again reviewed by the Army Corp of Engineers and a wetlands permit was issued for road extensions to 2 larger wind turbines. As the solar equipment will be installed in the winter no new road extensions will be needed and the foundation racking system is expected to be driven or screw anchor for the foundation. This will leave a minimal disturbance to the tundra. At this point in time, further reviews will be done but we are not expecting any significant permitting issues that have not been addressed by previous permitting done for the wind farm. 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 Proiected development cost of proposed renewable enerav s Total anticipated cost is $449,178 for a 100 kW array, based on PV panels available at $0.79 per watt ($79,000 for PV panels, $30,000 for racking components, and $86,885 for inverters and), $61,385 shipping costs, with the remainder of the budget for purchase of the foundation , design and purchase of mounting brackets, and installation. AEA 15003 Page 13 of 27 7/2114 Renewable Energy Fund Round VIII ®�, Grant Application - Standard Form © ENERGY AUTHORMY For matching contributions, KEA will provide the site, equipment needed to complete installation, and the majority of the workforce to complete installation Requested Grant Funding: $384,730 Matching Funds: $64,448: Working Capital: $42,256. In -kind Contribution: $27,389 Capital Cost for Proposed Project: $449,178 Development Cost for Proposed Project: $8,000 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) Utilizing national figures for solar installations, an estimated O&M annual cost is approximately $11,000 annually (2.5% of installation cost, per annum). However, it is not clear what the exact amount of effort will be needed to maintain a large PV array in Kotzebue. Maintenance for the solar array includes annual cleaning, vegetation management, warranty enforcement, equipment replacement, tracker maintenance, and electronics upkeep. Cleaning and maintenance checks will be incorporated into work and inspections schedules for the existing wind power plant. This will allow current staff to do double duty and work on both the solar and wind systems. The solar system will be connected to the KEA power SCADA system which will allow constant monitoring of the solar systems status. 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 KEA will utilize the power with any excess capacity being sold to the regional hospital. A 15 year thermal sales agreement is in place with the Maniilaq Medical Center. Return on investment to the state will be through reduced diesel fuel consumption, resulting in decreased PCE payments required. The lifetime rate of return for this project is 9.42% annually using AEA inputs. NREL's PV Watts Model shows a break-even point at 10'/2 years. AEA 15003 Page 14 of 27 7/2/14 Renewable Energy Fund Round VIII 41111111111117) GEED Grant Application - Standard Form ®AWK--) ENERGY AUTHORITY 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 attached model inputs 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 24 units ii. Rated capacity of generators/boilers/other 11.3 MW Diesel, 2.9 MW Wind iii. Generator/boilers/other type Diesel/Wind iv. Age of generators/boilers/other 130 years v. Efficiency of generators/boilers/other 14.28 kW-hrs/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] 22,551,909 ii. Fuel usage Diesel [gal] 1,275,202 Other iii. Peak Load 3450 iv. Average Load 2450 v. Minimum Load vi. Efficiency Diesel efficiency 14.28 kWh per gallon vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] N/A ii. Electricity [kWh] N/A iii. Propane [gal or MMBtu] N/A 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 15 of 27 7/2/14 Renewable Energy Fund Round VIII �� Grant Application - Standard Form 41111111111111111-3ENERGY AUTHORMY iv. Coal [tons or MMBtu] N/A v Wood [cords; green tons; dry tons] N/A vi. Other N/A a) Proposed renewable capacity 100 kW PV array (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i Electricity [kWh] 140,257 kWh u Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i Propane [gal or MMBtu] N/A ii Coal [tons or MMBtu] N/A ii. Wood or pellets [cords, green tons, N/A dry tons] iv Other N/A Project Cost a) Total capital cost of new system $449,178 b) Development cost $8,000 c) Annual O&M cost of new system $11,000 d) Annual fuel cost $0 Project Benefits a) Amount of fuel displaced for i Electricity 9,720 gallons annually u. Heat iii Transportation b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits Power Purchase/Sales Price $3.63 a) Price for power purchase/sale N/A AEA 15003 Page 16 of 27 7/2/14 Renewable Energy Fund Round VIII ©� 0 i Grant Application - Standard Form ®ENERGYAUTHORITY Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback (years) Project has a B/C ratio of 1.64 per AEA's REFP spreadsheet 10.5 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. Negligible effect on rates, either positive or negative. AEA 15003 Page 17 of 27 7/2/14 Renewable Energy Fund Round VIII iWID JA Grant Application - Standard Form ® ENERGY AUTHORITY 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 oroiect Utilizing NREL's Model and AEA's project analysis spreadsheet, 140,257 kW -hours will be saved, decreasing diesel fuel consumption by 9,720 gallons per year 5.1 Public Benefit for Projects with Private Sector Sales Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. Renewable energy resource availability kWh per month Estimated sales (kWh) Revenue for displacing diesel generation for use at private sector businesses $ Estimated sales kWh Revenue for displacing diesel generation for use by the Alaskan public $ AEA 15003 Page IS of 27 7/2/14 Renewable Energy Fund Round VIII �® �� A Grant Application - Standard Form ENERGY AUTHORITY 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 Project will be owned and operated by KEA, and will be incorporated into existing utility operations. Maintenance and operation for the system will be from KEA Operations and Maintenance annual budget. Operational issues identified include replacement of inverters, panel replacements, and other maintenance duties. KEA will continue to meet reporting obligations to AEA per funding stipulations. 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. I he site for a project has been established. KEA has been evaluating PV with the assistance of NRECA Cooperatives Research Network (CRN). CRN has provided current PV panel pricing, so KEA is aware of recent price decreases in this technology. We have conducted two modeling studies to see how adding a PV array to our existing system would affect our system, and have concluded that the PV array would provide additional fuel savings at a positive BCR of 1.64. Additional benefits from the PV array could be realized if Energy Storage system is successfully installed, and from sales of excess electricity per our PPA. Once awarded, KEA will proceed with ordering the PV panels. Prior to a grant award KEA will begin panel vendor selection, designing a 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 Support from KEA board of directors attached. The Kotzebue community has been supportive of all attempts to reduce community dependence on diesel fuel. Letters from the City of Kotzebue and NW Arctic Borough will be forthcoming. AEA 15003 Page 19 of 27 7/2/14 Renewable Energy Fund Round VIII Grant Application - Standard Form 6011-) ENERGY AUTHORITY AEA 15003 Page 20 of 27 7/2/14 Renewable Energy Fund Round VIII �� o Grant Application - Standard Form 411111111111FED ENERGY AUTHORITY 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 KEA is fully supportive of the project and will be committing staff for the design, project management and for the majority of the installation work. This will be a substantial match commitment of over $64,000. 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. KEA will be providing utility grade metering for the project. The solar system will also be connected to the KEA SCADA system for complete monitoring of the system. AEA 15003 Page 21 of 27 712/14 Renewable Energy Fund Round VIII �® Qom' a Grant Application - Standard Form ® 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 Ca/fa, atscalfWaDaidea.orp. Source of Matching Anticipated RE- Fund Grantee Funds: Cash/In- Milestone or Task Completion Grant Funds Matching kind/Federal OTOTALS Date Funds Grants/Other State Grants/Other (List milestones based on phase and type of project. $ $ $ See Milestone list below. ) Review information, data and reports on existing solar 4/1/15 $ $ KEA $ projects Identify PV panel, racking and 7/1/15 $3,500 $4,500 KEA $8,000.00 foundation suppliers Purchase PV modules, racking 7/31/15 $190,885 $0 KEA $190,885.00 system and invertors. Purchase, Foundations stem 7/31/15 $25,000 $0 KEA $25,000.00 Site Preparation 8/15/15 $13,506 $10,299 KEA $23,805.00 Balance of Plant Installations 9/15/15 $63,5B4 $27,257 KEA $90,841.00 Foundation Installation 3/31/16 $8,200 $11,500 KEA $19,700.00 Install racking, PV panels and 4/15/16 $44,800 $0 KEA $44,800.00 inverters Finish balance of plant 4/30/16 $30,971 $10,892 KEA $41,863.00 installation Commissioning 5/31/16 $4,284 $0 KEA $4,284.00 $0 $0 $0 TOTALS $384,730 $64.448.00 $449,178.00 Budget Categories: Direct Labor & Benefits $87,054 $10.892 KEA $97,946.00 Travel & Per Diem 1 $0 $0 KEA 1 $0 Equipment $190,885 $0 KEA $190,886.00 Materials & Supplies $88,584 $27,257 KEA $115,841.00 Contractual Services $9 756 $4,500 KEA $14 256.00 Construction Services $251 $10,299 KEA $10,650.00 Other $8,200 $11,500 KEA $19,700.00 TOTALS $384 730 $64,448 $449.178.00 AEA 15003 Page 22 of 27 7/2/14 Renewable Energy Fund Round VIII GEED ONID Grant Application - Standard Form ® ENERGY AUTHORITY SECTION 10 —AUTHORIZED SIGNERS FORM Authorized Grant Signer(s): Printed Name Title Term Signature Brad Reeve General Manager/CEO N/A Matt Bergan Project Engineer N/A I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signatur Brad Reeve General Manager/CEO N/A Grantee Contact Information: Mailing Address: P.O. Box 44 Kotzebue, Alaska 99752 Phone Number: 907-442-3491 Fax Number: 907-442-2482 E-mail Address: B—reeve@kea.coop Federal Tax ID #: 92-0021979 Please submit an updated form whenever there is a change to the above information. AEA 15003 Page 26 of 27 7/2/14 Renewable Energy Fund Round VIII ®® A.Q� Grant Application - Standard Form © ENERGY AUTHORITY 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. 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 Brad Reeve Signature Title General Manager/CEO Date 9/20/2014 AEA 15003 Page 27 of 27 7/2/14