HomeMy WebLinkAboutWtE Round VII Grant Application - SignedRenewable Energy Fund Round VII
Grant Application -Standard Form
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round VII of the Renewable Energy Fund. A separate application form is available for
projects with a primary purpose of producing heat (see RFA section 1.5). This is the standard
form for all other projects, including projects that will produce heat and electricity. An electronic
version of the Request for Applications (RFA) and both application forms is available online at:
http://www .akenergyauthority. erg/REFund?. htm I.
• If you need technical assistance filling out this application, please contact Shawn Calfa,
the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at
scalfa@aidea.org.
• If you are applying for grants for more than one project, provide separate application
forms for each project.
• Multiple phases for the same project may be submitted as one application.
• If you are applying for grant funding for more than one phase of a project, provid e
milestones and grant budget for each phase of the project.
• In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3
ACC 107.605(1).
• If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are completed and funding for an advanced phase is warranted.
• If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
• In the sections below, please enter responses in the spaces provided, often under th e
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 material s
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
• All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
• In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by th e
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
requ est.
AEA 2014-006 Application Page 1 of 20 7/2/2013
Renewable Energy Fund Round VII
Grant Application-Standard Form
II-·· SECTION 1 -APPLICANT INFORMATION . ~'.
Name (Name of utiiity, IPP, or government entity submitting proposai)
Chugach Electric Association, Inc.
Type of Entity: Cooperative Fiscal Year End December 31, 2013
Tax ID #92-0014224 Tax Status:_For-profit .....X......Non-profit _Government (check one)
Date of last financial statement audit:
Mailing Address Physical Address
P.O. Box 196300 5601 Electron Drive
Anchorage, AK 99519-6300 Anchorage, AK 99519
Telephone Fax Email
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
Name Title
Ronald K. Vecera Director of Renewable Energy Business Development
Mailing Address
P.O. Box 196300
Anchorage, AK 99519-6300
Telephone Fax Email
(907) 762-4759 (807) 762-4191 Ron_ vecera@chugachelectric.com
1.2 APPLICANT MINIMUM REQUIREMENTS ·. ..
·-
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application wiJ/ be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
X An electric utility holding a certificate of public conve nience 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);
Yes 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 Yes or No in the box)
Yes 1.2.3 As an applicant, we have administrative and financial management systems an d
follow procurement standards that comply with the standards set forth in the gran t
agreement (Section 3 of the RFA).
Yes 1 .2.4 If awarded the grant, we can comply with all terms and conditions of the award a s
identified in the Standard Grant Agreement template a t
htt~r//www .akenerg~authorit~.org/vee~/Grant-T em 1;1late.!;!df. (Any exceptions
should be clearly noted and submitted with the application.)
Yes 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 th e
project and who will be the primary beneficiaries.
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Grant Application-Standard Form
SECTION 2 -PROJECT SUMMARY
This section 1s intended to be no more than a 2-3 page overview of your proJect. ·. . .. · .. ·
2.1 Project Title -(Provide a ~ to z word title for your project). Type in space below.
Waste-to-Energy Reconnaissance Study
2.2 Project Location -
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project in the subsections below.
2.2.1 Location of Project-Latitude and longitude, street address, or community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project's location on the map
and then right clicking with the mouse and selecting ·What is here? The coordinates will be displayed in the Google
search window above the map in a format as follows: 61. 195676.-149.898663. If you would like assistance obtaining
this information please contact AEA at 907-771-3031.
At this point, the proposal is only a reconnaissance study. However, if a Waste-to-Energy (WtE)
project were to be developed, possible locations are by Chugach's headquarters (5601 Electron
Drive) or centrally located elsewhere in Anchorage, preferably near the solid waste transfer
station (1111 E. 56th Avenue) to minimize handling and transportation logistics.
2.2.2 Community benefiting -Name(s) of the community or communities that will be the
beneficiaries of the project.
Communities that Chugach serves would benefit from the renewable energy. At the time a WtE
plant would go into service, this would include communities such as Anchorage, Girdwood,
Portage, Hope, Moose Pass, Cooper Landing, Tyonek and Seward. Residents of Anchorage
that dispose of solid waste would benefit from reduced transportation and disposal costs, and
reduced emissions.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind X 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
X Reconnaissance Final Design and Permitting
Feasibility and Conceptual Design Construction and Commissioning
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Grant Application .. Standard Form
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
The project is the performance of a reconnaissance study to provide a preliminary assessment
of the viability of a WtE plant in Anchorage. Other than some recyclables that are recovered
prior to disposal, municipal solid waste (MSW) in Anchorage is largely disposed of in the
municipal landfill. The quantity of refuse currently being disposed of in this manner is
approximately 330,000 tons per year. There may also be an opportunity to incorporate othe r
fuel, such as wood being disposed of in local woodlots.
WtE plants, while somewhat rare in the U.S., are very popular, efficient and environmentally
effective in many European and Asian countries. If feasible, a WtE plant would be expected to
provide energy, environmental, reliability, economic and community benefits.
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, local jobs created, etc.)
A WtE plant would use renewable MSW generated in the Anchorage area. The possible
benefits are significant and could include:
• Reduced reliance on natural gas, lowering gas costs, moderating against volatile gas
prices, and minimizing associated costs, such as for gas transportation and storage.
• Reduced gas usage, conserving constrained Cook Inlet gas supplies and increasing
electric system reliability during gas supply interruptions or curtailments.
• Reduced greenhouse gas emissions from combustion compared to landfilling the solid
waste.
• Collection of revenue, via "tipping fees" from waste disposers. While disposers would
still pay to dispose of their garbage, the tipping fees charged at WtE facilities are les s
than those paid at landfills, resulting in reduced disposal costs.
• Extended use of the municipal landfill and an overall reduction in the land needed for
future landfilling.
• Reduced trips by large commercial vehicles making the 32 mile round trip (much of it on
Tudor and Muldoon Roads) from the central transfer station in Anchorage to th e
municipal landfill at the Glenn Highway and Hiland Road, reducing the time spent
handling waste and externalities such as carbon emissions and traffic congestion.
• Creation of construction and ongoing operational jobs.
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 cost of a reconnaissance study is estimated to be $250,000. The majority of the funding is
for professional services from an engineering firm that is experienced in WtE projects. Chugach
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Renewable Energy Fund Round VII
Grant Application-Standard Form
is requesting a grant of $150,000 for consulting services and will provide a cash match of
$100,000. Chugach's match will go toward consulting fees as well as the internal labor and
expenses to procure the consultant, manage the project and provide engineering and analytica l
support.
2.7 COST AND BENEFIT SUMARY "
Include a summary of grant request and your pro;ect's total costs and benefits below
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application $150,000
2.7.2 Cash match to be provided $100,000
2.7.3 In-kind match to be provided $
2.7.4 Other grant f unds to be provided $
2.7.5 Other grant applications not yet approved $
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $250,000
Project Costs & Benefits . · ...
(Summary oftotal project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.7 Total Project Cost Summary from Cost Worksheet, Section $To be determined
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) $To be determined
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 resume s
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.
Chugach's project manager for this effort is Paul Risse, Senior Vice President of Power Supply.
His professional bio is attached. Mr. Risse will be supported, as needed, by staff from within
Chugach Power Supply organization (organizational chart attached) such as engineering or
environmental as well as other types of expertise (financial, business analysis, other
engineering, etc.) from elsewhere in Chugach.
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Grant Application -Standard Form
Contact information for the Project Manager is as follows:
Paul Risse
P.O. Box 196300
Anchorage, AK 99519-6300
(907) 762-4532
Paul_risse@ch ugachelectric.com
3.2 Project Schedule and Milestones
Please fill out form provided below. You may add additional rows as needed.
Milestones Tasks
Reconnaissance Study:
Retain Consultant with Expertise in Issue RFP, review proposals and award
WtE Project Development contract for feasibility study
Performance of Reconnaissance Data Collection (site surveys, transmission
Study interconnection, geotech, climatological,
meteorological, labor rates, etc.)
MSW Fuel Characterization (determine
typical waste content, use of urban wood as
a feedstock, etc.)
Preliminary Site Assessment (evaluate
Chugach location and an alternate site.)
Technology Screening and Assessment
(compare/evaluate WtE technologies with
respect to cost, operations, advantages,
disadvantages, environmental issues, etc.)
Plant Design Basis (develop plant design
for selected technology and site.)
Conceptual Design (develop for selected
technology and site including site layout,
mass and heat balance diagrams, plant
configuration and systems description, fuel
supply logistics and constructability review.)
Preliminary capital and operating cost
estimates and a simple economic analysis
Preliminary Permitting and Environmental
Qualitative Assessment (identify applicable
permits/approvals and agencies and key
environmental issues and risks.)
Preliminary Project Milestone Schedule
(estimated duration of major project tasks
and milestones for project development,
environmental permitting, engineering,
procurement and construction.)
Reconnaissance Study Report (formal
report that summarizes study components
above and provides findings and
recommendations.)
AEA 2014-006 Grant Application Page 6 of 20
Start End
Date Date
7/1/14 9/30/14
10/1/14 6/30/15
7/1/2013
Renewable En ergy Fund Round VII
Grant Application .. Standard Form
3.3 Project Resources
~-;. \s 8\IERGY Al.Jn-IORITY
Describe the personnel, contractors, accounting or bookkeeping 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 an y
existing contracts and the selection process you may use for major equipment purchases o r
contracts. Include brief resumes and references for known, key personnel, contractors, an d
suppliers as an atta chment to your application.
This project will be managed by Paul Risse, who will supervise the efforts of an engineering
consultant to be selected. The consultant selected to perform the study will be one that is
experienced in WtE engineering and project development. Chugach staff will assist with
engineering, environmental, economic analysis and other task related matters.
Engineering consulting firm HDR Alaska, Inc. was retained to provide an assessment of local
MSW as a fuel source for a WtE plant. This is a preliminary report and a more in-depth
assessment of the quantity and quality of the local fuel supply is needed. The HDR report is
attached.
Chugach will work with local stakeholders, including solid waste collectors, recyclers and
municipal officials who have an interest in the cost and operation of the municipal landfill and
the planning for future landfill needs. Chugach has also been conferring with JL Properties, a
local real estate development company who previously owned Alaska Waste, the refuse utility
for most of Anchorage. While JL sold Alaska Waste, it retained the rights to the waste stream,
as it was envisioning a future WtE project.
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.
Chugach will keep the AEA apprised of the project's status by preparing routine reports that
conform to AEA's reporting requirements and by other exchanges of information on an as-
needed basis. The deliverable is a reconnaissance study that will inform the AEA of project
status through the completion of this phase.
Points of contact for this project include the grant applicant point of contact (Ron Vecera) and
the project manager (Paul Risse). Contact information for each is provided in this grant
application.
3.5 Project Risk
Discuss potential problems and how you would address them.
The risk to performing a study is the expenditure of funds for a project that may not be feasible.
If the project evolves, a risk may be permitting the facility. Resistance to WtE is mainly due to
two incorrect perceptions.
Using waste for energy is thought to inhibit recycling. Experience demonstrates it actually
increases recycling as metals left over after incineration are collected and recycled rather than
remaining forever in a landfill. WtE plants are very common in Europe and, according to the
Confederation of European Waste-to-Energy Plants October 2012 update: "Countries that have
most successfully reduced dependence on landfill (1% and below) have the highest recycling
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Renewable Energy Fund Round VII
Grant Application -Standard Form
rates in Europe, and have achieved this in combination with WtE {Germany, Netherlands,
Austria , Belgium and Sweden), proving that recycling and energy from waste which cannot be
recycled properly go hand in hand in order to divert waste from landfills ".
The other main objection to WtE is related to health concerns about dioxin emissions. Scrubbing
technology has advanced to the point, however, that actual emissions are below those required
by the Environmental Protection Agency's Maximum Achievable Control Technology (MACT)
standards.
WtE technology is a proven technology and is very common in countries, such as Japan, with
limited local energy resources and limited land for waste disposal. As of year-end 2010, Japan
had 310 WtE plants using a variety of technologies. While new WtE plants in the U.S. have not
been developed, there have been several expansions of existing plants in recent years. A new
plant is currently being developed in the Durham and York region , near Toronto, Ontario,
Canada.
The primary way to overcome public opposition to WtE is to show it to be an integral part of a
broad waste management strategy. The EPA, for example, has a solid waste management
hierarchy. First, is source reduction and re-use. Next is recycling and composting. Third is
energy recovery (such as via WtE or landfill gas). Finally, after all the prior efforts, the last step
for remaining waste is treatment and disposal.
Local political support will also be needed to ensure a viable project can be developed. Thus, it
will need to be shown that the operation of a WtE facility can be harmonized with the operation
of the landfill gas project on Joint Base Elmendorf Richardson (JBER) and the way th e
municipal landfill in operated now and in the future.
SECTION 4-PROJECT DESCRIPTION AND TASKS .:
•:. The level of information· will vary according to pha5e{s) of th~ project you propose to
.: ·~·undertake with grant funds. · .. ,y: .'~,.:~·. ·.. . .· ··, ,,'· ;·~~~-·· ·. , · '.' · , .. ;:' ~
• ., If some "work has already been Completed 0~ your project and you ar e r~q~~sting 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.
Chugach's proposed study will be a reconnaissance level assessment of the feasibility of locally
generated MSW as a potential energy resource. While there are alternative fuels, namely natural
gas, refuse is a renewable fuel, replenished daily, that is untapped at this time, other than some
gas from refuse already landfilled . It would provide diversification to the generation mix , conserve
the supply of Cook Inlet natural gas and mitigate logistical issues related to gas transportation and
storage.
I 4.2 Existing Energy System
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Grant Application -Standard Form
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.
Chugach's energy system included the recently completed 183 MW Southcentral Power Project
(SPP), which consists of 3 natural gas combustion turbines and a steam turbine. Chugach owns
70% of this plant and Anchorage Municipal Light & Power (ML&P) owns the remaining 30%. This
plant is the most efficient in the Rail belt with an average heat rate of about 7,500 btu per kWh.
The existing energy system also includes gas-fired plants at Beluga (7 units) and International (3
units). Chugach sold its Bernice Lake power plant to Alaska Energy & Electric Cooperative/Homer
Electric, but has contractual rights to the capacity through 2013. The combined capacity of these
three plants is about 500 MW. All of these units are very old (30 to 50 years) and most of the
ones owned by Chugach will be retired in the next few years.
Chugach's hydro resources include the Cooper Lake power plant with a capacity of 19.2 MW, a
30% ownership interest in the 47 MW Eklutna plant, and a 30% share of the energy generated by
the State-owned 120 MW Bradley Lake project.
Since September 2012 Chugach has been purchasing wind energy from the 17.6 MW Fire Island
Wind Project.
A WtE plant would provide generation and fuel diversity and be operated as a base load unit.
4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may haVe on existing energy infrastructure and resources.
The contributions to Chugach's energy supply from existing energy resources are currently about
86% gas-fired, 10% hydro and 4% wind.
A WtE plant would have a positive impact on the existing energy system by diversifying the
energy resources needed to meet base load demand. A WtE plant could be integrated into the
existing generation mix as a base-load unit. These plants have a consistent supply of fuel and
very high capacity factor (90 -95%). This would increase system reliability, especially if the re
was a natural gas supply disruption or curtailment. A WtE plant would allow marginal Chugach
units to be used less frequently and perhaps be retired sooner.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The existing energy market includes Chugach's retail consumers and wholesale custome rs
Matanuska Electric, Homer Electric and the City of Seward. Wholesale contracts with Homer and
Matanuska end in December 2013 and December 2014, respectively, so it is doubtful that they
will still be customers of Chugach by the time a WtE plant would go into service.
A successful WtE project would have a positive effect on this market by providing competitively
priced renewable energy that increases system reliability and reduces the cost of increasingly
expensive and volatilely priced natural gas.
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Grant Application-Standard Form
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
• A description of renewable energy technology specific to project location
• Optimum installed capacity
• Anticipated capacity factor
• Anticipated annual generation
• Anticipated barriers
• Basic integration concept
• Delivery methods
The proposed system is a WtE plant that uses locally generated MSW. Specifics, such as
technology, options, capacity and anticipated annual generation, integration, etc. will be more fully
developed and understood based on the proposed study.
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.
Possible sites will be assessed, including a 16 acre parcel at Chugach's main campus on Electron
Drive in Anchorage that was used as a "lay down" area for the SPP. This site is available. It is
located 2 miles from the solid waste transfer station and would provide for very close
interconnection to the electrical system, gas system and water and wastewater system. This is
the primary site for evaluation because it is owned by Chugach and information such as
meteorological and geotechnical data has previously been collected.
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 discussion of potential barriers
Permitting will be an issue for this project and assessing specific permitting and regulatory
requirements will be part of the study.
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 develop ment constraints
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