Loading...
HomeMy WebLinkAboutSEAPA Round VIII Renewable Energy Fund Grant Application Swan Lake Reservoir Expansion ProjectRenewabl¢ Energy Fund Round Vlil ®� � L.-` �,K��� Grant Application -Standard Form � ENERGY AUTHORITY 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 neat (sea RFA section 'I.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: htto://www.akeneravauthor'ty. ore/REFund B. htm I. If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grants Administrator at (g07) 77t-303t or at scalfa(r7�aidea.orc. If you era applying for grants for more than one project, provide separate application forms for each project. Multiple phases for the same project may ba submitted as one application. If you are applying for grant funding for more than one phase of a project, provide m ifestones 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 'I 07.605C t ). If soma 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 era com plated 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 ba subject to disclosure requirements underthe 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 ba 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 Recaiva concu rranca from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will ba treated as a public record in accordance with AS 40.25 or returned to the applicant upon raq uast. AEA 15003 Page 1 of 27 7/2/14 Renewable Energy Fund Round VIII �� A���LC A. _ Grant Application -Standard Form ENERGY AUTHORITY � The Southeast Alaska Power Agency ('SEAPA') T a of Enti Fiscal Yaar End: Joint Action Agency June 30 Tax IO #92-01746698 Tax Status: � For -profit ® Non-profit � Govarnm¢nt (ch¢ck one) AEA 15003 Page 2 of 27 7/2/14 Renewabl¢ Energy Fund Round VIII ��_ dl,- A�KLZ_.._ Grant Application -Standard Form ` E' E"'ER�'f P'"T"oA�T'' 1.2 APPLICANT MINIMUM REQUIREMENTS P/ease chacK as appropriate. /f you do not to meet the minimum app/icant requiremahts, your app/ication wi/! be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holtling a certificate of public convenience and necessity under AS 42.05, or An intlepentlent power protl ucer 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 (contlnua� P/ease chacK 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, wa have administrative and financial management systems and follow procurement standards that comply with the standards sat fortM1 in the grant agreement (Section 3 of the RFA). (Indlcata by chat King the box) ® 1.2.4 If awarded the grant, wa can comply with all farms and conditions of the award as identified in the Standard Grant Ag reemant template at http://www.akanargyauthority. org/REFundB.html. (Any exceptions should be clearly noted and submitted with the application.) (Indicate by checKin9 the box) ® 1.2.5 We intend to own and operate any project that may be constructed with grant funtls for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. (Indicate yes by checKing the box) AEA 15003 Page 3 of 27 7/2/14 Renewable Energy Fund Round VIII ®��. �L��K:O-.. _ G Cant Application - StandaCd Form � tr�eaw auTHoain SECTION 2 —PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.f Project Titles — (Provide a 4 fo 7 word title for your project). Types in space b®low. Swan Lake Reservoir Expansion Project 2.2 Project Location — /nc/ude the physics/ /ocation of your project and nama(s) of the community or communities that wi!/ benefit from your project in the subsections be/ow. 2.2.'1 Location of Project —Latitude and longitude, street address, or community name. Latitude and longitude coordinates may ba obtained from Goog/e Maps by Ending you project's /ocation on the map and then right c/icKing with the mouse and se/acting "What is here9 The coordinates will be displayed in the Goog/a search window above the map in a format as fo/lows: 61.196676.-149.898663. if you would /iKe assistance obtaining this information please contact AEA 8[ 907-771-3031. THe project is located in a remote area of Revillagigedo Island at the northern end of Carroll Inlet, approximately 22 air miles northeast of Ketchikan, Alaska. The project occupies Sections 11, '12, 13, 94, '16, 20, 2'I, 22, 23 and 27, Township 29 North, Ranges 91 East, Copper River Meridian. 2.2.2 Community benefiting — Nama(s) of the community or communities that will ba the banaFiciaries of the proJact. The project enhances the storage capacity of the Swan Lake Oam benefiting the communities of Petersburg, Wrangell, and Ketchikan; additional storage will add operational flexibility that benefits the entire region and also provides additional storage for non-dispatchable sources such as wind or run -of -the -river hydro, which could be potential future projects. One Hundred percent of the energy produced as a result of enhancing the storage capacity will ba for the public benefit. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.t Renewable Resource Types Wind 0 Biomass or 13iofuels (excluding heat -only) ® Hydro, Including Run of River 0 Hydrokinetic Geothermal, Excluding Haat Pumps � Transmission of Renewable Energy 0 Solar Photovoltaic (] Storage of Renewable O Other (Describe) � Small Natural Gas 2.3.2 Proposed Grant Funtled Phasa(s) for this Raqueat (ChecK a// that apply) Pre -Construction Construction 0 Reconnaissance O Final Design and Permitting AEA 15003 Page 4 0£27 7/2/14 Renewable Energy Fund Round VIII Grant Application -Standard Form ®�E^'��"'`�T*'�R'TM 0 Feasibility and Conceptual Design ® Construction and Commissioning 2.4 PROJECT DESCRIPTION Provide a brief one paragraph d®scription of the proposed project: The Swan Lake Hydroelectric Project is currently comprised of a concrete arch dam 774' high and 430' long at its crest, an intake structure near the dam, a rock tunnel and penstock water conveyance system, and a power house located near tidewater. It is located 22 air miles northeast of Katchikan, Alaska and generates renewable energy for the communities of Katchikan, Petersburg, and Wrangell. SEAPA proposes to raise the existing dam by 6' and install a gate system (fuse type and vertical gate) in the fixed spillway slot, which will result in an overall reservoir height increase of 'I 5'. This will provide a much needed additional 25% increase in active reservoir storage. Modifications to the concrete intake structure will also ba required, including raising the height and moving internal aq uipment to a higher elevation. 2.5 PROJECT BENEFIT Briefly discuss the financial and pub/ic benefits that wi// resu/t from this project, (such as reduced fuel costs, lower energy costs, lots/ jobs created, etc.) SEAPA has conducted preliminary engineering, license amend mant, and system integration studies in the pursuit of expanding the Swan Lake reservoir. After two -and -one-half years of effort at an expense to SEAPA of funds totaling $7'17,500 to data, SEAPA continues to promote expansion of the reservoir. A detailed Costs and Benefits Analysis (Attachment A) determined that raising the dam face height 'IS feet will result in the bast return on investment. It will add 25'i additional storage for winter hydro generation, displacing up to '12,000 MWhrs of diesel generation annually. Final amend mant of the Fadaral Energy Rag ulatory Commission (FERC) license was submitted to FERC on July 2'I, 20'14 and anticipates tom elation of a 30% design document by the end of 20'14. Botn of Lhasa tasks will 6e funded by the storage initiative portion ($578,000) of a 2012 legislative appropriation of $3,000,000 received by SEAPA from the Department of Commerce, Community, and Economic Development (OCCED). An additional appropriation of $3,320,000 was granted to SEAPA from the DCCED from the State's Fiscal Yaar 20'IS funds to complete Phase III of the Project (final design and permitting) and begin Phase IV of the project (construction and commissioning) AEA 15003 Page 5 of 27 7/2/14 Renewable Energy Fund Round VIII -�- al AKA_ Grant Application -Standard Form � � ' elaeawauTl-ioa'TY The subsequent cost to complete construction and commissioning as reflactetl in the following table is $8,776,369. Projae[ Costs TOf t 2013 20f 4 20f B - 2016 Total 20f2 Feasibility, License Consulting, $389,000 $94,350 $463.350 Environmental 5[utl ies Amendment Costs (Timber Harvest, 4(e) $55T,000 $SST,000 Constraints etc. Construction Eng 8 PM $456.350 $T39,61t $9,4t6.698 $'10,6'14,659 Total $389,000 $BT2,350 $f,296,6t1 $9,4t6,696 $1 t,TT4,659 Escalation $O $O $132,903 $1,484,30T $L,BtT,2'10 P rojBc[ Grand Total $389,000 $672,350 $1,429.5t4 $'10,901,005 $t3,39'1,869 Funding 20t'1 2013 20f4 TOf3-T096 Total 20t2 S EAPA FUndS $369,000 $94.350 $234,'I50 $5,9T8,434 $6,695,934 �CCEO Grant Funds $D $5T8.000 $3.320.000' $3,898,000 Awarded Remaining Construction and Engineering Funds $2,T9T,935 $2.T9T,935 Needed Total Project Cost $369,000 $BT2.350 $3,554.t 50 $B,TT6.369 $Y3.391,869 "FY20t5 OCCEC grant awaftlatl in 2014 Tor final tlaslgn antl parts Rting, and begl^^i^9 of Phase IV ^f ProjOM. Protect Benefits: directly contributes to increasing regional hydro storage capacity, which was identified as a priority in the Southeast Alaska Integrated Resource Plan (SEIRP) . misplaces up to '12,000 MWhrs of winter diesel generation, which equates to a reduction of 800,000 gallons of diesel fuel annually BanaFts all three interconnected member utility communities (Petersburg, Wrangell, and Katchikan) by providing additional storage capacity and greater operational flexibility, maximizing use of regional hydro resources Compliments the new Whitman Hydroelectric Project, which has minimal storage (project would ba fully operational by 20'16 and will shift summer spill that would have occurred at the Whitman hydro facility to much needed winter hydro generation) • Provides additional capacity to accommodate residential space heating conversions Reduces potential energy lost due to reservoir spill occurring most years Provides additional storage for future longer term projects • Maxi micas value of an existing hydro project Timing of project is consistent with predicted load growth Local jobs during construction Tha displacement of 800,000 gallons of diesel from this project will save '17,904,000 pounds of COz from being emitted into the atmosphere AEA 15003 Page 6 of 27 7/2/14 Renewable Energy Fund Round VIII ®� .^�]- .A�K�y,� Grant Application -Standard Form ENERGY AUTHORITY 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 total cost of the project is estimated at $t 3,39'1,869. Funding of $2,797,935 is Headed for completion. In the State's 20'12 legislative session, an appropriation of $3,000,000 was awarded to SEAPA by the Department of Commerce, Community and Economic Development, of which $578,000 will be reimbursed to fund permitting and engineering costs for this project. In the State's 20'14 legislative sesson, an appropriation of $3,320,000 was awarded to SEAPA by the Department of Commerce, Community, and Economic Development to fund Phases III of the project, final design and permitting, and begin Phases IV of the project, construction and commissioning. Thasa raim bursamants will occur during SEAPA's Fiscal Year 20t4 or 20'I 5. SEAPA has invested iwo-and-a-half years of effort and spent $7t 7,500 to date on the project. The balance of $6,695,934 (includes $7'17,500 spent to date] is SEAPA's anticipated cash match for completion of the project; however, SEAPA will continua to pursue other funding opportunities. Includes $T17.500 ap¢nt to eat¢ on the project. An appropriation oT $3,000,OOD w wartlatl to SEAPA by Ma Dapartmanf of Commerce. Community and Economic DavalDpment. oT wM1ICM1 $578.000 will ba ro mbursatl to Tuntl permitting antl anginealing wets for this proj¢ct In [M1e S[ate's 2014 legislativa a appmprielion of $3.320.000 w wattled to SEAPA by iba Dapaltm¢nt of Commerce, Community, and Economic Davalopm¢nt to fund Phes¢ III of the pmjact, Tinal tlesi9n and parmlHing, antl b¢gin Phase IV of [ha projatt. [Remainder of page intentionally left blank.] AEA 15003 Page 7 0£27 7/2/14 Renewable Energy Fund Round VIII ®� pl_..�CfCd- Grant Application -Standard Form �-, er.leaw Aurl-IonITY Proj¢ot Costs 8r Benefits (Summary of total project costs inc/uding worlr to data and future cost estimates to get to a fully operations! project) 2.7.7 Total Project Cost $ t3,39'1,869 Summary from Cost WorXshaat, Section 4.4. 4, inc/uding estimates through construction. 2.T.8 Additional Performance Monitoring Equipment not $ N/A covbr6d by the proJact but req ulrad for the Grant On/ a licable to construction hase ro "ecfs 2.7_9 Estimated Oiract Financial Bsn¢fit (Savings) $ 2,752,000' The economic mode/ used by AEA is availab/a at www aKanerovauthority o/+u/REFundB. htm/. This economic mode/ may ba used by app/icants but is not required. Other economic mode/s developed by the app/icant may ba used, however the fine/ benefit/cost ratio used will ba derived from the AEA mode/ to ensure a /a va/ /a in fie/d for a/! a /icants. 2.7_t0 Other Public Banafit $ 2,752,000^ /f you can calculate the benefit in terms of dollars p/ease provide that number here and explain how you ca/cu/ated that number in Section 5 ba/ow. •Value of annual tliaplecad tllascl based on KatcM1lkan Public U[Ilifiea (KPU) tllasal gan®ration far FY 20t3 (t t,646 MWhrs = 796,399 gaYdlasal m $2,670.6t 3). Maximum benorR t2,000 MWhrs = 800,000 gal/tllasal tllaplac®d annually = $2.?52,000. Saa, also, AHachmanl A —Costs end Banarrts Analysis fof Incrsasln9 Storage at Swan Lakc- SECTION 3 —PROJECT MANAGEMENT PLAN Oascriba who will be responsible for managing the project and pravide a p/an for successfu/ty comp/sting the project within the scope, schedule and budget proposed in the app/ication_ 3.t Project Manager Tall us who will b¢ managing the project for the Grantee and include contact information, a resume and referenees for the managar(s). In the electronic submittal, please submit resumes as separate P�Fs 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 inland to solicit project management support. If the applicant expects project management assistant¢ from AEA or another government Eric Wolfe, a SEAPA employe¢, and cu rr¢nt Director of Special Projects, will be the Project Manager. Mr. Wolf¢ has 26 years of utility angin¢erin9 and management experience. Mr. Wolf¢ has advised utilities on: hydro turbine and hydroelectric plant sizing, lost revenue effects resulting from relic¢nsing mitigation, forward production and cost estimates, and system operations. Mr. Wolfe's resume is included with this application in Attachment B hereto. AEA 15003 Page 8 of 27 7/2/14 Renewable Energy Fund Round VIII �� ^ 1 ^-� Grant Application -Standard Form `E�ERwAUT�oR�T=r--- - 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. Mllestonaa Taslcs Start Data End Date Phase IV Construction and Commisaionin General Requirements Tasks same as Milestones OB/19/2015 10/OS/20t5 Mobilization and Man Camp 11/17/2016 12/OB/20t5 Site Prep Work 12/OS/2015 01/22/2016 Intake Tower Modifications 01/11/2016 04/1 O/2016 Concrete Support Abutment 02/16/20t5 06/14/2016 Concrete Crest Raises 02/t 6/2015 O6/25/2016 Tie to Right Abutment 07/1 O/2016 08/09/201 B Regrade Roadway 09/1 O/2016 09/22/2016 Installation of Gate System 07/14/2016 11/13/2016 McMillan's Engineering Report,. Preliminary Drawings, and a Construction Schedule for this project are available on SEAPA's website at htto://www.seaoahvdro.orc/Swan-Lakes-oroiect.oho. The 30 design drawings, which are considered critical energy infrastructure information (CEII) and not subject to public disclosure by the Federal Energy Rag ulatory Commission (FERC), may be made available to the AEA upon request. 3.3 Project Resources Uescriba the parson nel, 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 aq uipmant purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. McMillen, LLC and Tetra Tech, Inc. (resumes attached, Attachment B) have been the main consultants to data for this project. Jacobs Associates is the consultant for preliminary engineering design. SEAPA will contract out the remaining work and solicit a 'design-builtl' contractor. The primary personnel for both phases of this project will be SEAPA staff and the dasig n-build contractor to be selected through a bidding process. SEAPA staff will team up with these consultants/contractors to sea the project through to completion. Partnerships or Commitments: ➢ Alaska Department of Fish 8. Game (A�FSG) ➢ Alaska �apartmant of Natural Resources (AONR) ➢ U.S. Forest Service (USES) ➢ U.S. Fish &Wildlife Services (USFWS) Existing Contracts: ➢ SEAPA with McMillan, LLC ➢ SEAPA with Tetra Tech, Inc. AEA 15003 Page 9 of 27 7/2/14 Renewable Energy Fund Round VIII ��, �� A�L� Grant Application -Standard Form �-er�eaw aurnoa'TM ➢ SEAPA with Jacobs Associates SEAPA staff and their role in the project include: D Trey Actason, Chief Executive Officer, would act as Project Executive and will maintain ultimata authority programmatically and financially. D Eric Wo/fa, Oiractor of Spacial Projects, would lead the project management team consisting of SEAPA staff and consultants contractors. Together with his team, Mr. Wolfs would provide coordination of dam modifications, gala installation, and commissioning. D Steve Hanson, Operations Manager, would provide technical assistance and information rag arding impacts to Swan Lake operations. ➢ Kay Kay, Control/sue would provide support in accounting, payablas, and financial reporting in accordance with AEA guidelines. ➢ Sharon Thompson, Executive Assistant, would prepare contract documents, arrange travel to project site, effect communications with design -build contractor, and assist Controller in tracking project activities for grant reporting. Tha rasu mess of Tray Acteson, Eric Wolfe, and Kay Kay are included in Attachment B hereto. 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Plaasa provide an alternative contact parson and their contact information. SEAPA intends to contract out the work for Phases IV of this project and will raq uire monthly progress reports from the contractors. Monthly reports will be submitted to the AEA. The a ltarnative contact person is: Steve Henson, Operations Manager Southeast Alaska Power Agency t 900 First Avenue, Suite 3'18 Ketchika n, Alaska 9990t Ph. 907.228228'1 � Fax 907.225.2287 \Email: shensonk�seaoahvdro.oro 3.6 Project RisK Discuss potential problems and how you would atldress them. Potential Problems Rising aq uipment costs Lead time Inclement weather Solution Factor into total wst of project Factor into total cost of project; pre -order long lead -lima items Monitor weather conditions and adjust schedule accordingly AEA 15003 Page 30 of 27 7/2/14 Renewable Energy Fund Round VIII ��, AQ® Grant Application -Standard Form �-. eraEaw auTttoalTv 3.6 Project Accou ntant(s) Tall us who will ba pertorming the accounting of this Project for the Grantee and include contact information, a resume and references for th¢ project accountant(s). In the el¢ctronic submittal, please submit resumes as separate POFs 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. Kay Kay, Controller Southeast Alaska Power Agency t 900 First Avenue, Suite 31 B Ketchikan, Alaska 9990'I Ph 907.228.228"I � Fax 907.225.2287 I Email: kkev�seaoa hvd ro.oro Ms. Key's resume is attached in Attachment B hereto. 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. Tha accounting system is Quickboeks, and it is used solely by the Controller and Administrative Assistant. All grant -related invoices are assigned to grant expense codes and assigned to a Class that identifies the grant. S.8 Financial Management Controls Discuss the controls that will be utilized to ensure that only costs that are reasonable, ordinary and necessary will be allocated to this project. Also discuss the controls in place that will ensure that no expenses for overhead, or any other unallowable costs will be requested for reimbursement from the Renewable Energy Fund Grant Program. The Controller administers grants; upon issuance, grant guidelines are reviewed by the Controller who shares that information with all staff involved in grant activity. All invoices, including those for grant -related expenditures, are coded to grant expanse codes, assigned to the corresponding grant and approved by SEAPA's Chief Executive Officer. The Controller is responsible For grant reporting and reviews each invoice charged to the grant prior to requesting reim bursem¢nt under the grant. Neither the Controller nor the Administrative Assistant, who have access to [he accounting system, may approve invoices for payment. SEAPA undergoes annual audits performed by independent auditors and is subject to state single audits. AEA 15003 Page 11 of 27 7/2/14 Renewable Energy Fund Round VIII �A�KA_ _ Grant Application -Standard Form � � er�eaw nuTrioa'Tv The /eve/ of information wi/1 vary according to phases) of the project you propose to und¢rtaK¢ with grant funds. /f some won< has a/ready bean comp/eted 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 EnsrgY Resource Describe the potential eMent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may b¢ available for the market to be served by your project. For pr¢-construction applications, describe the resource to th¢ extent known. For design and permitting or construction projects, please provide feasibility documents, design tlocum¢nts, and permitting documents (if applicable) as attachments to this application. SEAPA provides 66% of the region's energy and '100% of the region's load following and stability raq uirem ents. SEAPA also develops and executes the hourly, weekly, and monthly dispatch plans; through th¢se planning and dispatch efforts, the new additional storage would be utilized to capture the region's short-term hydro excess (spill). Later in the winter, this excess would be used to displace up to '12,000 MWh of diesel generation. Other alternatives not as wall defined and with lower beneRt-to-cost ratio: While development of hydro is ongoing, another plausible source of energy that could be developed is geothermal; however, the closest source that could be tapped which is close enough to tie into SEAPA's existing Swan-Tyee Intertie is Bell Island. Although the property is currently up for sale, the owners had applietl for three geothermal leases. Actual development of geothermal could take years pending the permitting process and significant capital investment. No geot¢chnical drilling to daterm ine whether geothermal resources are present at that site has yet been undertaken. As discussed in the AEA's Renewable Energy Atlas of Alaska, significant utility -scale solar generation is unlikely in Alaska due to high capital costs and low annual solar power output. While biomass used for heating is an exciting and welcomed t¢chnology in the SEAPA region, the production of power from biomass is questionable due to a myriad of issues including environmental and supply-side concerns. A careful look at the biomass energy pros and cons reveals that it is far from the perfect energy source, but is still very promising as a replacement for the fossil fuels currently in use for heating. Tha anticipated effect of wind power would ba lass use of diesel fuel for electrical power generation during energy and capacity shortfalls. Documents era available to illustrate the current design and schedule of this project on SEAPA's website at http://www.seapahvd ro.org/Swan-Lake-proLect.ohp. AEA 15003 Page 12 of 27 7/2/14 Renewable Energy Fund Round VIII ®� ��;��� Grant Application -Standard Form � eNenw^t'TMor"''' 4.2 Exlating Energy System 4.2.1 Basco oonfiguraifon 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. \: A � �l i �:i-9 -3q :Z�3�_\.` P11•I :ZcC [H � rl Typ¢ Y¢ar Insta ll¢d MW/kw Avaraga Ca aclt H tlro En¢ MWh SEAPA HYDRO Swan Lake Plant 25 MW 76 000 MWh Unit t Francis t983 12.5 MW Unit2 Francis t983 t25 MW T ee Lake Plant 25 MW t20,000 MWh Vnit t Pelton t984 t2.5 MW Uni[2 Pelton t984 t2.5 MW KETCHIKAN PUBLIC UTILITIES KPU HYDRO Ketchikan Plant 4.2 MW 22 500 MWh Vnit 3 Francis t923 t.4 MW V nit4 Francis t938 t.4 MW Unit 5 Francis t957 t.4 MW Silvis Plant Francis t967 2.t MW t2,800 MWh Beaver Falls Plant 5 MW 43 400 MWh Unit t Pelton 1946 t904 t MW Unit3 Pelton t954 2MW Unii4 Pelton t954 2MW KPU DIESEL Baffle Power Plant 23 MW Unit t Diesel t969 3.5 MW Unit2 Diesel t969 3.5 MW Unit 3 Diesel t976 5.5 MW Unit4 Diesel t998 t0.5 MW North Point Hi ins 3.2 MW CAT 7 Diesel 2005 t6 MW CAT t Diesel 2005 t.6 MW PETERSBURG MUNICIPAL POWER 8 LIGHT PMPBL HYDRO Blintl Slough Hydro ('In t 982, a new atainlasa steal r s in- stalletl on Pelton wheel Pelton t955' t.75 MW t3,000 MWh PMP&L Diesel t t.8 MW Unit t Diasal t965 t,200 kW Unit 2 Diesel t 979 580 kW Unit 3 Diesel t979 680 kW Unit4 Diesel t972 2.t MW Unit 5 Diesel t994 2.5 MW Unit 6 Diesel 2000 2.5 MW Vnit 7 Diesel 20t2 2.25 MW WRANGELL MUNICIPAL LIGHT 8 POWER MLBP WMLB.P Diesel 8.5 MW Unit 2 Diesel 200t 2.0 MW Unit 3 Diesel 2003 2.0 MW Unit4 Diesel 2002 2.0 MW Unit 5 Diesel t982 2.5 MW AEA 15003 Page 13 of 27 7/2/14 R¢newable Energy Fund Round VIII �E, AI_A��� Grant Application -Standard Form � eNeacv nuTr-ioaiTv SEAPA's existing energy resources include the Swan Lake and Tyee Lake Hyd roelactric Projects. With the completion of an intartia in late 200g, Ketchikan, Wrangell, and Petersburg are interconnactad with a SEAPA-owned transmission system. Power from the Swan and Tyea projects era delivered to the three tom munitias pursuant to a Long -Term Power Sales Agreement. Ketchikan Public Utilities (KPU) owns and operates the Ketehikan Lakes, Beaver Falls, and Silvis Lakes Hydro Projects. KPU maintains four peaking/standby diesel generators at its Bailey Powerhouse and two other diesel generators at its North Point Higgins Substation. Tha diesel generators provide power to the community in times of low reservoir levels, hydro maintenance periods, and for emergency use during outages. Petersburg Municipal Power & Light owns the Blind Slough Hyd roelactric Project and also has seven back-up diesel generation units; Wrangell Municipal Light & Power has four back-up diesel units. 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. SEAPA's existing resources as described in Section 4.2.'I herein era fully operational. In the case of the hydro resources, these assets era fully utilized to the extent that inflows allow. �iasel generators are used during times of low inflows, exceedingly high loads (very cold temperatures), and era fraq uantly tested and operated for short durations to ensure availability. 4.2_3 Exiatln9 Enar®Y Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. SEAPA's market is a mixture of municipal loads and generation coupled to SEAPA's generation assets. The Tyea and Swan Lake Hydroelectric Projects era intarcon netted via SEAPA's transmission lines as shown on the Map attached as Attachment C. Market -based decisions are borne by SEAPA's municipal members as they decide when and how much SEAPA energy to import. The Swan Laka reservoir increase augments this market process by moving difficult to dispatch fall inflows to the winter generation [Remainder of page intentionally left blank.] AEA 15003 Page 14 of 27 7/2/14 Renewable Energy Fund Round VIII �� ����,�� Grant Application -Standard Form E'E"'ER�''P"rTt'oR'TM 4.3 Proposed 3ystam 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 The Swan Lake Storage Reservoir Expansion Project is a renewable energy project that displaces winter time diesel generation. SEAPA has conducted a feasibility study and preliminary engineering study to increase the storage capacity at Swan Lake. Tha 30% design is nearly complete and includes a number of improvements over the original design. The original McMillen Engineering Feasibility Study and drawings completed to date era available at htto://www.seaoahvdro.org/Swan-Lake-oroiact.oho under the 'Swan Lake design/Construction Documents' tab. The dam elevation will remain at 344.0 ft. A now, fuse -type flashboard system and vertical gate will raise the elevation of the reservoir from 330 ft to 345 ft. We also plan to modify the parapet wall such that the structure is water tight up to elevation 347.5 ft. No changes will occur in the powerhouse or power tunnel. This project req uiras anon -capacity license amendment in that the construction will increase Swan generation in terms of energy without increasing machine capacity ('12,000 MWh high; 7,500 MWh average). After completion of the license amendment, the ramai Wing work to acquire construction permits will be part of the construction planning process. At this time SEAPA anticipates only minor efforts necessary to obtain construction permitting such as Section 401 and 404 permits as work will not be done below the high water mark; there are no plans to place fill in stream courses. There will be negligible disturbance of adjacent Tongass National Forest (TNF) lands as the original construction laydown and construction office space was conveyed to the State and is now part of the project lands. SEAPA expects to use this ample space again for construction activities. [Remainder of page intentionally left blank.] AEA 15003 Page 15 0£2'7 7/2/14 Renewable Energy Fund Round VIII © Q�--^^-�'!Q.� Grant Application -Standard Form ���ENEHGV AIJrHOHITY 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. All construction is within the existing FERC boundary. For a description of reservoir increase affects see the following: There are two major categories of effort to construct additional storage at Swan Lakes, the license amendment, and actual �i construction. The amantlment --- __ _ �p - will be a non -capacity amend- ment as no changes to s � _ powerhouse equipment or --- � _ hydraulic conveyance (pen- 11 - stocks, tunnels) era plan netl- - I - ,. - Therefore amendment efforts .. are cantered on land use '�- �- ,E,� changes around the reservoir. -i'� - r9--�- -- _ Around the reservoir, the FERC x- '- boundary currently follows the y-"-�-- � 350 ft. elevation contour, - '�"' �-��; however the State Lands - - � boundary follows the metes _ y ��'Z� -_'t1 --- k _--'�-�{ � -- - ---� and bound courses described � � `�� \�—J' 1 in the Project's Exhibit K � � \ drawings. Tha approximate '��-y l _- boundary of States and Federal _ _ Lands is shown as shaded in <-'�'�.-._.__. � �-- Figure 8. In 9997 the US � '_ - r Forest Service (USES) lands Figures 8 - Parc¢I 2 of Stato Convoyanc¢ around the Project were conveyed to the States of Alaska pursuant to the Alaska Statehood Aet of t958. Two parcels (U. S. Survey No. 'I '1630) were conveyed as described under Patent Number 50-97-0286. Parcel 'I encompasses land below the powerhouse and Parcel 2 describes lands surrounding the reservoir. The proposed reservoir increase only affects Parcel 2. Results of the RS.M land survey conducted during the summer of 20'12 found project lands outside of the existing ONR boundary. Even though there will now ba Project lands on the Tongass National Forest (25.8 acres), this parcel is small and may not require a special use permit for project operations. A timber cruise and sale will be required for inundated trees on USES lands, and a cruise, sale, and harvest will have to be carried out on inundatetl �NR lands. We do not expect to harvest trees in the zone above full pool but below the probable maximum flood (PM F) elevation. AEA 15003 Page 16 of 27 7/2/14 Renewable Energy Fund Round VIII ®�, .C#1 _-.455..L�L� Grant Application -Standard Form �- er�eaw auTMoa'TM - 4.3.3 Permits Provide the following information as it may slate to permitting and. how you intend to address outstanding permit issues. List of applicable permits Anticipated permitting timeline Identify and discuss potential barriers An amendment to SEAPA's License for Swan Lake is required by the Federal Energy Regulatory Commission (FERC) for this project. SEAPA filed an Initial Consultation Document (ICE) with FERC on April '15, 20'13. Tha ICE consolitlatetl into a single document the information Headed by agencies to understand the project, identify any anvironmantal issues, identify any information Heads or studies, and provide com manta and racom mandations. The stages identified in the IGO are complete and formed the basis for SEAPA's license amendment application, which was filed with FERC on July 2'I, 20'14. Any known potential obstacles have already been addressed. 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 SEAPA timely produced a PLEA for its amended license application. Tha PLEA followed on ICE studies and Tongass National Forest Resource Reports. To date these studies/reports include a: spawning study, tributary access study, cultural study, aquatics, watershed, botany, soils and wetlands resource reports. Tha studies contained in SEAPA's ICE are available at http://www.seapahvdro.oro/Swan-Laka-oro'act oho. To data, SEAPA has self -funded the anvironmantal assessment work. Tha license amendment was Fled wish FERC on July 2'I, 20'14. Those studies have identified no endangered or th rested species issues, and the proposed project was found to have a negligible effect on fisheries as the original creek had a migration barrier located near the dam site. In short the proposed project changes the habitat very little from the existing project. Any other known potential barriers have already been addressed. AEA 15003 Page 17 of 27 7/2/14 Renewable Energy Fund Round VIII ®" A1-�_�KA, - Grant Application -Standard Form �-eraeaw .auTrlorairy 4.4 Proposed New System Costa and Projeoffitl Raven ues jToffiI Estimated Costs and Projected Raven uas) Tha 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, Provide data ilad 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 Tha source of the following costs and projected revenues era consultant's astim etas and applicant's records: Total antici ated ro'eet cost $'13,39t 869 Cost to complete project SEAPA Cash Match for Phase IV: $5,978,434 Grant Funds Requested in this application: $2 797 935 Cost to Com /e[a Prc'sct. $8,776,3B9 $8,776,369 Re nested Gent Fundin $2 797 935 Applicant Cash Matching Funds for Phase IV: $5,978,434 A licant Cash Matchin Funds S ant to Data: $ 7t 7 500 $8,695,934 Identification of Other Fundin Sources: DCCED Grants $3,898,000 Pro acted ca ital cost of ro sed renewable ener s stem $'13,39t,869 Pro'eeted davalo mant constmction cost Phase IV $8.776,369 4_4.2 Project Operating and Maintenance Costs Include anticipated OS.M costs for new facilities constructed and how these would ba funded by the applicant. (Note: Operations/ costs are not a/igib/e 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.) Futures project OB.M costs resulting from this enhancement are expected to be minor and will be captured under the existing Swan Lakes Hyd roelactric Project budget. Additional maintenance efforts over what is now expended on the dam will entail monitoring and maintaining the gate system, and inspecting the new structure according to FERC's dam safety and surveillance monitoring plan. AEA 15003 Page 18 of 27 7/2/14 Renewable Energy Fund Round VIII ®� ^`��,,,1�� Grant Application -Standard Form ©a�lER�v ALrtrloRrry 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: Identification of potential power buyers)/customer(s) Potential power pu rchasa/sales price - at a minimum indicate a price range Proposed rate of return from grant -funded project The City of Ketchikan, under the terms of an existing Long -Term Powar Sales Agreement will have the first opportunity to purchase the additional energy (up to '12,000 MWh — 7,500 MWh average) provided by the storage increase at $68/MWh (6.8 cents/KWh). At this sales rate and quantity, the project has a benefit -to -cost ratio of one (1) for SEAPA if 50p/o of the capital cost is borne by the State of Alaska. If the benefit -to -cost ratio is based on avoided diesel, than the benefit -to -cost ratio is near a factor of four (4). 4.4.4 Project Cost WorKaheat Complete the cost worksheat form which provides summary information that will be considered in evaluating the project. P/ease fi// out the form provided ba/ow. Renewable Energy Source Tha Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. An analysis by an independent consultant verified a minimum benefit of 2,300 MWh, an average benefit of 7,500 MWhr, and a maximum benefit of '12,000 MWhrs. This analysis used both historical and synthetic inflows re resentin a '100- ear eriod. Unit de ands on ro""act t a a. .winds aad, h dro ower out ut, biomass fuel. Existing Energy Generation and Usages a) Basic configuration (if system is part of the Railbalt� grid, leave this section blank) i. Number of generators/boilers/other See responses, Section 4.2.'I, Existing Generation ii. Rated capacity of generato rs/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other b) Annuai O8.M cost (if system is part of the Railbalt grid, leave this section blank) i. Annual O8M cost for labor Negligible ii. Annual O8M cost for non -labor .035 ($kWh) —existing SEAPA generation and transmission system ' The Rallbeli grid connects all custom¢rs of CM1ugacM1 Electric Association, Homer Electric Association, Gold¢n Valley Electric Assocatlon, tb¢ Clty of 5¢wartl EI¢ctrlc Department, Mafanuska EIECtfiC Associaton and Anc M1orage Munlclpal LIgM1<antl Power. AEA 15003 Page 19 of 27 7/2/14 Renewable Energy Fund Round VIII ®`_, Ol__�_�K/� Grant Application -Standard Form `- er-Ieaw ,auTr.oairy c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electdcity [kWh] 274,096,000 kWh (20'13 load —system wide) ii. Fuel usage Diesel [gal] 840,000 gallons (20'IS projection) Other iii. Peak Load 52.4 MW (O'I /'17/20'12 � 4 PM) iv. Average Load 3'1.4'I MW (20'12 average) v. Minimum Load '19.74 MW (OS/25/2012 @ 3 AM) vi. Efficiency .86 water —wire hydro 'ISkWh/gal. di®sal vii. Future trends The Southeast Alaska Integrated Resource Plan (SEIRP) contained a reference case load forecast for the SEAPA region which was developed by Black 8 Veatch (BS.V). This reference case (between the nigh and low cases) contained a steep rise in loads until 20'15, than a constant .5% escalation until 2030; after 2030, an annual escalation of .25'/o was used. SEAPA modified the B&V load forecast for this analysis to nave a uniform .5% annual load increase until 2050. Tha modified load forecast includes Kaka, but does not include Metlakatla. Following a review in 20t4, this load forecast remains in use. tl) Annual Heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu7 N/A ti. Electricity [kWh] iii. Propane [gal or MMBtu7 iv. Coal [tons or MMBtu7 v. Wood [cords, green tons, dry tons] vi. Otner Proposed System Design Capacity and Fuel Usage (/nc/ude any projections for contiued use of non-renawab/a fu¢/s) a) Proposed renewable capacity Existing capacity is 25 MVA — no change; this is an (Wind, Hydro, Biomass, otnar) energy storage Project. [KW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [KWh] 7,500 MWn average inflow year '12,000 MWh high inflow year ii. Heat [MM Btu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu7 No fuel usage ii. Coal [tons or MMBtu7 iii. Wood or pall¢ts [cords, green tans, dry tons] AEA 15003 Page 20 of 27 7/2/14 Renewable Energy Fund Round VIII �� A� �,�� Grant Application -Standard Form ENt3iGV Atmfortnv iv. Other Project Cost a) Total capital cost of new system b) Development cost c) Annual O&M cost of new system d) Annual fuel wet Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat ii i. Transportation $8,776,369 Nona 800,000 gallons of diesel b) Currant price of displaced fuel c) Other economic benefits d) Alaska public benefits $3.50/gallon (estimate) Less demand for diesel Bane£rts include: air pollution decrease; stabilization of energy prices to support economic development; reduction in fuel transport and associated spill risks; additional storage capacity; and firms up other renewables such as wind, tidal, and run -of -the -river Power Purchase/Sales Price a) Prices for power purchase/sale Although average retail rates within the SEAPA control area are $'100/MWhr, the primary purpose of this project is to displace growing diesel generation by our member utilities which currently costs $230/MWhr. Project Analysis a) Basic Economic Analysis Project banafiLcost ratio PaybacK (years) See, Costs and Benefits Analysis (Attachment A) AEA 15003 Page 21 of 27 7/2/14 Renewable Energy Fund Round VIII ®� OL. �CKd._.__ Grant Application -Standard Form � ENERGY AUTHORITY d 4.4.5 Impact on Raters 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 ba for both pre and post PCE. This project reduces the rate in Ketchikan as diesel generation triggers an automatic diesel surcharge. As an example, if the project were online this past year, the diesel surcharge would have bean eliminated. SECTION C>- PROJECT BENEFIT F�rp/ain [ha economic and pub/ic benefits of your project. /nc/uHe direct cost savings, anti how the peop/e ofA/as/ra w/// banaflt from the project. Tha 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 Purch asa Agreement price, RCA tariff, or cost based rats) 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 Potential Annual Fuel �isolacement: The primary goal of SEAPA and the region is to use renewable resources to the maximum extent possible and reduce diesel generation to the lowest eMent possible. Tha expanded reservoir will add additional water for winter hydro generation that will displace 7,600 MWh of diesel generation on an average basis and during larger water years, up to t2,000 MWh of diesel generation will ba displaced. Anticipated Annual Revenue: 7,500 MWh x $68/MWh = $5'I O,OOD; maximum revenue in a high inflow year will ba 12,000 MWh x $68/MWh = $6t6,000 Potential Additional Annual Incentives: SEAPA will not apply for additional annual incentives Potential Annual Revenue Streams. Not applicable. Non -economic Public Benefits: The anticipated non -economic public benefits of increasing storage at the Swan Lake Oam would ba: ('I) decrease in air pollution from fossil fuel use; (2) stabilization of energy prices to support economic development; (3) reduction in risk from fuel transport and associated spill risks; (4) provides additional storage capacity; and (5) this project Frms up other renewables such as wind, tidal, and run -of -the -river hydro projects. S.1 Public Benefit for Protects 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. Sae section f.6 in the Request for Applications for more information. Not applicable - no private sector sales as SEAPA only sells power to its three member utilities. AEA 15003 Page 22 of 27 7Y2/14 Renewable Energy Fund Round VIII �; �1 AS.KA. Grant A{�plication -Standard Form �s - Er�Eaw aurrior-viTr Renewable anar resource availabilit kWh er month N/A Estimated sales kWh N/A Revenue for displacing diesel generation for use at rivals sector businesses $ N/A Estimated sales kWh N/A Revenue for displacing diesel generation for use by the Alaskan ublic $ N/A Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: Proposed business structura(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 SEAPA's business structure for its Swan Lake facility is already in place through its Long -Term Power Sales Agreement. Tha Swan Lake dam is currently operated by Katchikan Public Utilities (KPU) under an Operations and Maintana nca (O8.M) Agreement entered into between SEAPA and KPU. O8�M of the project once completed will be financed by revenue from SEAPA sales. Future p rojact O&M costs resulting from this enhancement are expected to be minor and will be captured under the existing Swan Lake Hydroelectric Project budget. Additional maintena nca efforts over what is now expended on the dam will entail monitoring and maintaining the Vertical Control Gate, checking the fuse panel system quarterly, and inspecting the new structure according to FERC's Oam Safety and Surveillance Monitoring Plan. SEAPA will commit to reporting the savings and benefits of the project for a ten-year period following completion of the project. SECTION 7 — READINESS 8a 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. Tall us what you may have already accom plishad on the project to data and identify other grants that may have been previously awarded for this project and the degree you have bean able to. SEAPA has solicited and received local governing body approvals/support for the project, self - funded a portion of Phases 1, II and III, received a 20'12 legislative appropriation of $3 million dollars from the OCCEO, of which $578,000 (storage initiative portion) will fund portions of the work and a 20t5 legislative appropriaton of $3,320,000, which will fund Phases III of the project, final design and permitting, as wall as begin Phase IV. Once funding is secured, SEAPA is fully capable of proceeding with issuance of an RFP for solicitation of a design -build contractor. Work will proceed upon issuance of FERC's order amending the license. Pending the FERC order, SEAPA is fully prepared to proceed with work par the provided schad ule without delay. AEA 15003 Page 23 of 2'7 7/2/Y4 Renewable Energy Fund Round VIII ��, AI_.pQ�A Grant Application -Standard Form �' enEaw sauTt.oa'TY Other awarded grant(s): 20t2 legislative appropriation of $3,000,000 from the DCCED, of which $578,000 is allocated for this storage initiative and 20t5 legislative appropriation of $3,320,000 from the DCCED for Ph asa III (design and permitting) and beginning of Phases IV (construction and commissioning) of project. SEAPA previously received a $46.2 million dollar appropriation in the Stata's 2008 legislative budget for SEAPA's Swan-Tyea Intartia Project, which was successfully completed on -time and u ndar budget in late 2009. SECTION 8 —LOCAL SUPPORT AND OPPOSITION Discuss local support and opposition, known or anticipated, for the project. Include lottars of su000rt 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, 20t4 SEAPA held a meeting with its board of directors on September 3, 20t4. The board of directors signed a Resolution authorizing this grant req uast. The Resolution and Minutes of the meeting era included in Attachment D to this application. Also attached is a Resolution by SEAPA's board of directors formally supporting a commitment to proceed with development of the Swan Lake Reservoir Expansion Project and in parallel continue to seek funding 'support from the State of Alaska. Attached are letters from the communities of Ketchikan, Wrangell, Petersburg, and the Ketchikan Gateway Borough expressing their continued support of the project, together with their atlopted Resolutions evidencing their commitment to move this project forward with their full support. The letters and Resolutions era included in Attachment E to this application. SECTION 9—GRANT BU UG ET Tal! us how much you era saeKing in grant funds. /nc/uda any investments to date and funding sources, how much is being requested in grant funds, and additional investments you wi// make as an app/icant. 9.t Funding sources and Financial Commitment Provide a narrative summary regarding funding source and your financial commitment to the project SEAPA is requesting $2,797,935 in grant funds antl has already spent $7'17,500 cash to date toward this project. An additional $5,978,434 is SEAPA's anticipated cash match for completion; however, SEAPA will continua to pursue other funding opportunities. 9.2 Coat Estimate for Metering Equipment P/ease provide a short narrative, and cost estimate, identifying the metering equipment, and its re/atad use to comp/y with the operations reporting requirement identified in Section 3. f5 of the Request for App/ications. Not applicable. AEA 15003 Page 24 of 27 7/2/14 Renewable Energy Fund Round VIII �� �� ^-�'�-� Grant Application -Standard Form � ENERGY AUTHORI I Y Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (I. Reconnaissance, 11. Feasibility and Conceptual �asign, III. Final Design and Parm fitting, and IV. Construction and Commissioning). Please use the tables provided below to detail your proposed projact's budget. Be sure to use one table for each phase of your project. /f you have any question regarding how to prepare these tab/es or if you Head assistance preparing the application p/ease fee/ free to contact AEA at 907-771-303-1 or by amai/ing the Grants Administrator Shawn Ca/fa, at sca/fa(o7aidea.oro. PHASE IV (Construction and Commissioning) - - Milestone or Task Anticipated Com elation Dat¢ RE- Fund Grant Funtls Granted Matching Funtls Source of Matching Funds: Gash/In- Kind/Fatlaral Grants/Other state Grants/Other TOTALS (List milestones based o phase and type of project. Sea Milestone list below. General Requirements t0/OS/2015 $»O.>8t^ $O $O Mobilization S Men Cam 42/OSr2015 T34 394' $O $O Site Pre Work Ot/22/20t6 $t,416,T19 $O Cash $14t6 >t9 Intake Tower Motlitications 04/t O/2016 9T9 t BS $O Cash $9>9.t 88 Concrete Su ort Abutment 06/t 4/20t6 $402.028 235,2t2 Cash 63T 240 Concrete Crest Raise OB/25/2016 $O $>31,a89 Cash $T3t,889 Tie to Ri Itt AbutmenT OH/09/20t6 $O $654.856 Cash 654 B56 Re ratla Roadwa 09/22/20t6 $O $542,733 Cash $542 T33 Installation of New Gale s stem 11/t 3/20t6 $O $1,082 �9t Cash $1.062,T91 �. ...._-�. .... 5uktctal ❑I ':C ns a a20osta Cash $t,44t,360 COntraCLOr Bond MarKup 8 Overheatl N/A $O $t,44t,360 Engineering Services During Construction N/A $O $495,99T Cash $495,99T Construction Management tlurin Construction N/A $O $T93,596 Cash $T93,596 TOTALS $2.T9>.935 $5,9T8,434 B TT6 369 Butl at Cate ortas: Direct Labor 8 Benefits $O $50 000 $50 000 Travel 8 Per Diem $O $50.000 $50.000 E ui men[ $t 00,000 $150,000 $250 000 Materials 8 Su Iles $t.500 000 2 OT/ 345 S3 5TT 345 COMrectual Services 39T 935 $2 41 t 069 2 809 024 Construction Services $800 000 $t 200 000 $2 000 000 Other $40,000 40 000 TOTALS $2.T9T,935 $5 9>8 434 $8 >T6.369 'General Requirements antl Mobilization antl Man Camp Milestones not includetl in Phase IV construction cosfa as they will be paitl from FY2015 OCCED Grant funtls. AEA 15003 Page 25 of 27 7/2/34 Renewable Energy Fund Round VIII �� ^ L.�eChC�L�-_, Grant Application -Standard Form e�>erieaw nurtioniTv SECTION t0—AUTHORIZED SIGNERS FORM Community/G rantae Names: Tha Southeast Alaska Power enc `SEAPA' Regular Election is held: Data: Sea paragraph 'I.2 of SEAPA's Bylaws attached. Annually each February Authorized Grant Signer(s): P rioted Names Title Tarm Signature Tray Acteson Chief Executive Officer uhlim itad 1 authorize the above pareon(s) to sign Grant Documents: /H ioheat ran king organization/community/municipal official) Printed Names Title Tarm Si n Bob Siyertsen Chairman of the Board t year Grantee Conffict Information: Mailing Address: '1900 First Avenue, Suites 3t8 Ketchikan, Alaska 9990'I Phone Num bar: 907.228.2281 Fax Num bar: 907.225.2287 E-mail Address: tactason sea ah dro.or Federal Tax ID fR: 92-O'174669 Plaasa submit an updated form whenever there is a change to the above information. AEA 15003 Page 26 of 27 7/2/14 EXECUTffON COPY BYLAWS OF TBE SOUTHEAS'r ALASKA PO'"TR AGENCY 1. 1 Duties and Voflimg RequIrements. All powers of the Southeast Alaska Povver Agency (the "Agency') shall be exercised by or under the authority of the Board of Directors and the business and affairs of the Agency, including all matters related to the Long Term Power Sales Agreement between the Agency and the Member Utilities, as defined therein, shall be managed by or under the direction of the Board of Directors. Except as otherwise provided, the Board shall make decisions by majority vote of all of its Directors. 1.2 Appolutmeimt and Term of Office. The Agency shall have a total of five ]Directors, Each Project shall be represented by two Directors. The Tyee Lake Project shall be represented by one Director, and one alternate from Petersburg and one Director, and one alternate from Vvrangell, The Swan Lake Project shall be represented by two Directors and two alternates from Ketchikan. Each Member Utility shall notify all other Member Utilities in writing of its designated Director and alternate to the Board. Directors and alternates shall serve for a one-year term commencing on January I and ending on December 31 of each calendar year, provided that a Director or an alternate to the Board shall continue to serve until his or her successor is appointed. The fifth Director and one alternate shall be selected and approved, on an alternating annual basis, between the two Projects. When the Swan Lake Project is to select the fifth Director, the Member Utility from Ketchikan shall make the selection, In the year that the Tyee Lake Project is. to select the fifth Director, the selection shall alternate between the Member Utilities of Petersburg and Wrangel],.' The selection of the initial fifth Director shall be determined randomly in a manner unanimously agreed upon by the Member Utilities. In the event the Member Utility from Ketchikan, on behalf of the Swan Lake Proilect, is randomly determined to select the initial fifth Director, there shall be a second random selection between Wrangel] and Petersburg to determine which Member Utility will select the initial fifth Director to represent the Tyee Lake Project, The fifth Director may serve one or more additional terms, with the consent of all Directors from each Project. Such a selection shall not alter the alternation of the selection of the fifth Director. ). By way of example only, if Ketchikan selected the fifth Director in Year I (representing Swan Lake Project), in Year 2 Petersburg would select the fifth Director (representing the Tyee Lake Project). In Year 3 Ketchikan would select the fifth Director (representing Swan Lake), In Year 4 Wrangell would select the fifth Director (representing the Tyee Lake Project). Page 1 — BYLAWS OF SOUTHEAST ALAS KA POWER AGENCY Renewable Energy Fund Round VIII ��, �.1 ^.�IC:Q_—.--_ Grant Application -Standard Form �-eneaw au n-ioarry SECTION 'I t —ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information and resu mas of Applicant's Project Manager, Project Accountant(s), key staff, partners, consultants, and su ppliars per application form Section 3.f, 3.4 and 3_6. App/icants era asKad to provide resumes submitted with app/ications in separate a/ectronic documents if the individua/s do not want their resumes posted [o the project web site. B. Letters or rasol utions demonstrating local support par application form Section 8. C. For projects Involving heat: Most recant invoice demonstrating the cost of heating fuel for the buildings) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant's governing body or management par RFA Section t.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. P rovidas as point of contact to represent the applicant for purposes of this appllcatio n. Certifies the applicant is in compliancy with applicable federal, stets, and local, laws including existing credit and federal tax obligations. E. An electronic version of the entire application on CD or other electronic media, per RFA Section '1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continua 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 Tray Acteson Signature T� Title Chief Execut�iv�y� Officer Data Saptam ber �r 20'14 AEA 15003 Page 27 of 27 7/2/14