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HomeMy WebLinkAboutFalse Pass REF R7 FinalRenewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Application Page 1 of 26 7/2/2013 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.org/REFund7.html. • 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, provide milestones and grant budget for each phase of the project. • In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 ACC 107.605(1). • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are completed and funding for an advanced phase is warranted. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. • In the sections below, please enter responses in the spaces provided, often under the section heading. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed. REMINDER: • Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. • In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 2 of 26 7/1/2013 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of False Pass Electric Utility Type of Entity: Local Government Fiscal Year End Tax ID # 92-0135411 Tax Status: For-profit Non-profit Government ( check one) Date of last financial statement audit: Mailing Address PO Box 50 False Pass, Alaska 99583 Physical Address 100 Main Street False Pass, AK 99583 Telephone 907-548-2319 Fax 907-548-3314 Email cityoffalsepass@ak.net 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Chris Emrich Title City Clerk Mailing Address PO Box 50 False Pass, Alaska 99583 Telephone 907-548-2319 Fax 907-548-2214 Email cityoffalsepass@ak.net 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 X 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 and follow procurement standards that comply with the standards set forth in the grant 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 as identified in the Standard Grant Agreement template at http://www.akenergyauthority.org/veep/Grant-Template.pdf. (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 the project and who will be the primary beneficiaries. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 3 of 26 7/1/2013 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. False Pass Wind Energy Project 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project – Latitude and longitude, street address, or community name. Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s location on the map and then right clicking with the mouse and selecting “What is here? The coordinates will be displayed in the Google search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance obtaining this information please contact AEA at 907-771-3031. False Pass is located on the eastern shore of Unimak Island on a strait connecting the Pacific Gulf of Alaska to the Bering Sea. It is 646 air miles southwest of Anchorage. N 54° 52.443' W 163° 24 .646', WGS 84 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. City of False Pass 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type X 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 X Feasibility and Conceptual Design Construction and Commissioning Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 4 of 26 7/1/2013 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. False Pass currently produces all their electricity from diesel generators and heating from burning fossil fuels. Analysis by Marsh Creek LLC confirms that, despite the ample Class 4 wind resource, a Class 3 S designation is most appropriate. Turbulence from complex terrain precludes a typical rural Alaskan wind project. This project proposes feasibility completion funding to 1) fully assess commercially available wind turbines for deployment in high turbulent locations and 2) expanding available wind resource data at the 10 meter height on proposed sites and 3) revised Conceptual Design Report (CDR) recommending the best turbine to proceed to design in Round 8. Vertical axis wind turbines (VAWTs) are potentially a mechanically and economically sound upgrade to False Pass’s current diesel generator system. This project will consider ten (10) 5 kW Kelso VAWTs in comparison to the use of either the Xzeres Skystream and Bergie options. The CDR recommendations will closely examine three potential turbines and research other potential options. The Vertical axis wind turbines (VAWTs) are potentially a mechanically and economically sound upgrade to False Pass’s current diesel generator system. This project will consider ten (10) 5 kW Kelso VAWTs in comparison to the use of either the Xzeres Skystream and Bergie options. This project seeks feasibility funding for the False Pass wind project. The feasibility funding would allow for further site testing of wind resources at the proposed system height of 10M and heat recovery analysis. Conceptual Design Report Updates will include additional HOMER analysis with wind resource data at the 10M height, Down East Heat Recovery modeling, WASP modeling, wind turbine profiles, revised economic analysis and recommendations. 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.) This project will reduce fuel and the overall energy costs for the City of False Pass. False Pass currently produces all their electricity from diesel generators and heating from burning fossil fuels. Little biomass is currently available to offset home heating and hydro in the local streams and solar energy do not seem practical in False Pass. A 2005-2007 study conducted by Marsh Creek indicates ample wind resources for vertical axis wind turbines (VAWTs). The reliance on diesel fuel and heating oil, and the rising cost and unpredictable price of both, is the primary motivating factor in establishing alternative and sustainable energy sources. For instance, in 2008 the City purchased 40,000 gallons of diesel #2 at $4.10/gal. One year later, the same amount of Diesel was purchased for $2.29/gal. The current price of Diesel #2 is $3.45. The proposed wind generation infrastructure in False Pass will help stabilize energy costs, providing long-term socio-economic benefits to the city. With more affordable energy available in the villages, more of the region’s households will be able to afford to stay in their communities, promoting community stability and wellness and helping to stem the tide of rural outmigration. The vertical axis wind turbine (VAWT) technology considered is a proven alternative to Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 5 of 26 7/1/2013 traditional turbines that are inefficient in turbulent, avian-sensitive areas. VAWTs have been successfully deployed in similar rural communities such as Cold Bay. It remains to be seen if Kelso VAWTs would outperform Xzeres Skystream and Bergie options in other rural Alaskan communities. The False Pass wind-diesel feasibility project would serve as a real-world test case to prove vertical axis turbine effectiveness that could be employed at larger scales in other remote Alaskan communities. Since this turbine design has already been proven, VAWT technology is no longer emerging technology. Third party certification is anticipated in 2014. Installing VAWT turbines would prove a great example of the Renewable Energy Fund (REF) and Emerging Energy Technology Fund (EETF) programs complementing one another. Other project benefits will include: - Reducing dependence on diesel fuel and the expense involved in its transportation and storage - Saving on current operation and maintenance costs for current diesel generators - Contributing to a reduction in air pollution and impact on climate change 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. Funding in the amount of $47,050.00 is requested from the Renewable Energy Fund for this project. In-kind contribution in the amount of $5,000.00 is dedicated to this project. Total grant costs sum to $52,050.00. 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project’s total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $ 47,050.00 2.7.2 Cash match to be provided $ 0 2.7.3 In-kind match to be provided $ 5,000 2.7.4 Other grant funds to be provided $ 0 2.7.5 Other grant applications not yet approved $ 0 2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $ 52,050.00 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $ 52,050.00 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects. $ N/A 2.7.9 Estimated Direct Financial Benefit (Savings) $ N/A 2.7.10 Other Public Benefit If you can calculate the benefit in terms $ N/A Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 6 of 26 7/1/2013 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. The project will be managed by the City of False Pass with progress reports and assistance, as needed, provided by Marsh Creek LLC. Marsh Creek LLC has been selected as the contractor for performance of all work described in Section 3.2 – Project Schedule and Milestones. John Lyons of Marsh Creek will serve as the Project Manager and will oversee all work performed by Marsh Creek. Marsh Creek’s Community Relations Manager, Connie Fredenberg, will be responsible for maintaining regular communications between the City of False Pass and Marsh Creek. Marsh Creek’s Senior Project Coordinator Maggie McKay will be responsible for maintaining communications between Marsh Creek and the Alaska Energy Authority including quarterly progress reports and other communication methods as required in the grant agreement. Josh Craft from Alaska Energy Authority has been included in the project to assist in HOMER modeling as a no-cost addition to the project. Below is the anticipated organization of project members. Entity Contact Position Email Phone City of False Pass Chris Emrich City Clerk cityofflasepass@ak.net 907-548-2319 Marsh Creek, LLC John Lyons Project Manager John.lyons@marshcreekll c.com 907-343-0408 Marsh Creek, LLC Maggie McKay Project Coordinator maggie.mckay@marshcr eekllc.com 907-343-0407 V3 Energy, LLC Doug Vaught Wind Engineer dvaught@v3energy.com 907-350-5047 Marsh Creek, LLC Connie Fredenberg Community Liaison Connie.fredenberg@mars hcreekllc.com 907-444-6220 Alaska Energy Authority Josh Craft Wind Program jcraft@aidea.org 907-771-3000 Attached are their resumes. 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in in your Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 7 of 26 7/1/2013 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. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Application Page 8 of 26 7/2/2013 Please fill out form provided below. You may add additional rows as needed. Milestones Tasks Start Date End Date FAA Permitting Apllication Apply for FAA permits 3/14/2014 4/13/2014 Heat Recovery & Met Tower Equipment 10M Tower #1 7/1/2014 8/1/2014 10M Tower #2 10M Tower #3 10M Tower #4 Heat Recovery Instrumentation Heat Recovery & Met Tower Installation Install Tower #1 8/1/2014 8/6/2014 Install Tower #2 Install Tower #3 Install Tower #4 Install Heat Recovery Instrumentation Gather Data Gather Data from Met towers and Heat recovery 8/7/2014 2/3/2015 Homer Analysis Initial Homer Analysis 2/3/2015 3/5/2015 Modeling WASP Modeling 3/6/2015 4/5/2015 Down East Heat Recovery Modeling Homer Updates CD Revisions Turbine selection 4/6/2015 5/6/2015 VAWT Analysisi Skystream Analysis Bergy Anlaysis Homer Economics Wind Resource Conclusions & Recommendations Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 9 of 26 7/1/2013 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Application Page 10 of 26 7/2/2013 3.3 Project Resources 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 any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. Tom Hoblet, City of False Pass Mayor will serve as the project sponsor and coordinate with Marsh Creek, LLC. Chris Emrcih, City Clerk, will be responsible for submittal of required financial and status reports to the Alaska Energy Authority. Marsh Creek, LLC will confer routinely with the False Pass City staff while simultaneously working with qualified consultants (V3 Energy, LLC) to develop and complete the project. Josh Craft and Rich Stromberg of the Alaska Energy Authority will assist in base wind data analysis. Marsh Creek, LLC will follow its procurement and bid policies as far as selecting firms and purchasing equipment, supplies, and materials. Selection of consultant and contractors will be based on the type and amount of past wind project experience of the firm as well as individual work experience, experience and familiarity in the region, and project cost. 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. Marsh Creek's Community Relations Manager, Connie Fredenberg, will be responsible for maintaining regular communications between the City of False Pass and Marsh Creek. Marsh Creek’s Senior Project Coordinator Maggie McKay will be responsible for maintaining communications between Marsh Creek and the Alaska Energy Authority including quarterly progress reports and other communication methods as required in the grant agreement. Marsh Creek’s Renewable Energy Systems Division Manager John Lyons will facilitate coordination between all Marsh Creek personnel. Marsh Creek, LLC will work closely with the selected contractors and keep the AEA informed of progress by regular e-mail updates as components of the project are completed. The contractor's interim and final reports will be submitted promptly when completed. 3.5 Project Risk Discuss potential problems and how you would address them. Feasibility studies are generally a low-risk project stage. Four met towers will be built around the City of False Pass to gather necessary data for modeling purposes. The only reasonable risk to this project is that damage to these towers could result in data loss. This risk has been addressed by using NRG systems equipment specifically designed to operate in cold and harsh weather. The purpose of this feasibility project is to reduce the risk of improper project design by increasing due diligence through supplemental data gathering. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Application Page 11 of 26 7/2/2013 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. The wind resource as the False Pass met tower site is generally good with measured wind power class 4 by measurement of wind power density (Class 3 if considering only mean annual wind speed). By other measures important for wind power analysis, the site has a low 50-year return period extreme wind probability but high turbulence; the latter apparently due to the high mountains that border Isantoski Strait and that are very near the met tower to the north, west and south. Turbulence intensity calculated from the met tower data indicates much higher than desirable turbulence conditions. These challenges could be met with either Kelso VAWTs or Xzeres Skystream or Bergie turbines. In 2010 the Alaska Energy Authority (AEA) funded a grant to the Aleutians East Borough (AEB) to perform an assessment of renewable energy resources (wind, waste heat recovery, hydro, tidal, solar). The wind resource in False Pass was identified as viable renewable energy option but put on hold due to problems with turbulence. Turbulence concerns have been addressed by using Kelso VAWTs. Please reference conceptual design reports that are already submitted. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The City of False Pass owns and operates the False Pass Electrical U tility. The electric utility serves 21 residential, 11 commercial, one state facility, and nine community facilities customers . (1) John Deere 75 kW; 4 hours of operation (1) John Deere 125 kW; 11,483 hours of operation (1) John Deere 175 kW; 17,789 hours of operation The peak load is 170 kW with an average load of 75kW. The community has used an average of 53,153 gallons per year of diesel #2 for electrical generation for the last two years. The utility's power distribution system is all underground 3-phase wire operating at 12,470 volt s grounded Y . Please see figure below. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 12 of 26 7/1/2013 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 13 of 26 7/1/2013 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 False Pass Power Plant produces electrical energy by burning diesel fuel in engine-driven generators. This satisfies a community power consumption of approxim ately 580,530 kWh per year. This consumption does not include power that is used to operate the pow er plant , or power lost in distribution. By integrating wind power into the existing system, our goal is to generate the same amount of energy output, using substantially less fuel than is currently being used. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. False Pass is located on the eastern shore of Unimak Island on a strait connecting the Pacific Gulf of Alaska to the Bering Sea. It is 646 air miles southwest of Anchorage and accessible only by air and barge transportation. The community experiences long and cold winter nights , and severe winter storms can be continuous. Existing power consumption is approximately 580,530 kWh per year. Reliable power service is essential for airport lights (especially in winter), the health clinic, school, government , tribal, and corporation buildings and facilities, harbor utilities, the Bering Pacific Seafood Plant, commercial enterprises , and residences. Wind power will ultimately help stabilize power costs and allow the City of False Pass to no longer need to subsidize the fuel costs for the utility, but instead put that additional money towards a Repairs and Replacement fund for new equipment. The City is also hoping to develop a world class tidal power resource, which will supply an additional 50 kW of power that can be used for electricity or heat as demand requires. 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 Marsh Creek modeled a low to medium penetration with coincident thermal energy generation wind- diesel design for the False Pass facility, due to the location’s ample but turbulent wind resource. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 14 of 26 7/1/2013 As the utility already converts engine heat for space heating quite efficiently, the False Pass hybrid approach optimizes the heat recovery system by wind power in the form of electrical thermal at this site for the school or community building. To facilitate an effective and reliable wind-diesel hybrid system, Marsh Creek proposes to install four (4) weather stations in open areas near the airport. The combined data from these stations will be used to determine if ten (10) 5 kW VAWTs would perform compared to Xzeres Skystream or Bergie turbines. Regardless of turbine choice, the first use of power will be to add kWhs to the grid for customer use. Additional power will be diverted to the heating loop. Wind-diesel power systems are categorized based on their average penetration levels, or the overall proportion of wind-generated electricity compared to the total amount of electrical energy generated. Commonly used categories of wind-diesel penetration levels are low penetration, medium penetration, and high penetration. The wind penetration level is roughly equivalent to the amount of diesel fuel displaced by wind power. Note however that the higher the level of wind penetration, the more complex and expensive a control system and demand-management strategy is required. Vertical Axis Wind Turbines have yet to be used to power an Alaskan village, although 7 were recently installed to provide heat for Cold Bay’s USFWS office, housing and shop. The Kelso VAWT is a 5 kW machine which, while undergoing certification in Canada, has produced as much as 8 kW. With several months of operational experience in Cold Bay’s wind regime the VAWT’s are proving to be robust and productive. The Bergey and Xzeres Skystream wind turbines are both certified by the Small Wind Certification Council (SWCC) and are considerations for the project’s final design. These two turbines have been installed and proven successful in Alaska. Other turbines certified by the SWCC may be reviewed as well, but at this time are unknowns in the state. The goal of obtaining additional wind resource data is to provide the optimum project design. Information on delivery methods, optimum installed capacity, capacity factor, annual generation, barriers, and integration will be a product of this feasibility study. These topics currently remain unexplored. 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The met tower was originally installed in May of 2005 with monitoring equipment and lead installers contributed by AEA and the local labor partially covered under a DOE Tribal Energy Grant. The city manager and village corporation CEO chose the site with guidance from the Endangered Species department at the USFWS and Federal Aviation Administration (FAA). The favored location by the airport was not approved by FAA. The most recent plan is to site all VAWT near the airport, the original preferred location. Because these VAWTs are not on tall towers, they are expected to be no issue with FAA. And because USFWS is studying the VAWTs they installed in a very sensitive bird area in Cold Bay, they are supportive of the notion that VAWTs do not pose any danger to birds. We do not expect there to be any problems with avian interaction. The City of False Pass is in the process of determining if the land by the airport is owned by DOT, FAA or the local village corporation. The City believes there will be no problem with access to this area for this proposed wind farm. See resolution attached. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 15 of 26 7/1/2013 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 Potential permits required of the project include: Alaska Pollution Discharge Elimination System No permits are needed as less than one acre of soil will be disturbed. Federal Aviation Administration VAWTs are only 10 meters tall, whereas horizontal axis turbines would be on 30 meter towers. We believe there will be no problems installing these low to the ground turbines near the airport in False Pass. Alaska Department of Natural Resources • Alaska Coastal Management Program Consistency Review No permits are needed at this time. • State Historic Preservation Office (SHPO) The SHPO has been consulted and no issues are expected. • US Army Corps of Engineers No permits are needed as we do not foresee any fill in of wetlands or streams in the area. Roads that are typically needed for the construction of turbines and power lines have already been built to the most recent proposed site location. No 404 permits from the US Army Corps of Engineers will be needed. • Wetlands and Waterways No wetland loss for this project is anticipated as this project builds on existing infrastructure constructed by the City of False Pass. • US Fish and Wildlife Service Although not located at the site already vetted by USFWS, we are fully aware of the support USFWS has for use of VAWTs in sensitive bird areas. We foresee no problems with avian interaction nor objections from USFWS. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: • Threatened or endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barriers Threatened or endangered species Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 16 of 26 7/1/2013 • The only threatened or endangered species considerations to be made involve Stellers Eiders, and have been addressed with appropriate turbine design and location. Habitat issues • Habitat issues have been addressed by siting turbines at a location with pre-existing road access. Wetlands and other protected areas • Damage to wetlands and other protected areas has been addressed by siting turbines at a location with pre-existing road access. Archaeological and historical resources • Archaeological and historical resources have been addressed by siting turbines at a location with pre-existing road access. Land development constraints • Siting the proposed wind turbines at locations that already have road access has eliminated land development constraints that would be present if gravel pads needed to be built specifically for this project. Telecommunications interference • No telecommunications interference is anticipated. Aviation considerations • The only threatened or endangered species considerations to be made involve Stellers Eiders, and have been addressed with appropriate turbine design and location. Visual, aesthetic impacts • The City of False Pass supports construction of turbines on their land which indicates the visual impacts are of secondary importance to the benefits offered by turbine construction. Identify and discuss other potential barriers • No other potential barriers have been identified. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system Cost to date is $74,075, $69,075 of which came from the round IV renewable energy fund, and $5,000 in community in-kind match. The projected cost for this feasibility phase is $52,050, with another $5,000 in community match. To date, the community has contributed $10,000 of in-kind match. We are requesting $47,050.00 for this grant per consultant’s estimate. The City of False Pass will provide $5,000 of in-kind funds. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 17 of 26 7/1/2013 There are no other funding sources being used for this phase. Data gathering during this feasibility phase will be used to inform optimal turbine design. Only at this time will reasonable estimates of renewable energy system cost be available. 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.) Operating and maintenance costs vary from year to year but generally average at ~$10,000/year. False Pass and Marsh Creek LLC are currently in negotiations in terms of long-term O&M strategy. Similar agreements in other villages (i.e. Kokhanok) have proven to be successful. This contract would consist of training for local personnel to maintain the equipment. Local capacity to maintain the system will help keep O&M costs to a minimum after the 5-year contract with Marsh Creek LLC has ended. At this point O&M costs will become the responsibility of the local utility. 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 The City of False Pass electric utility serves the community of False Pass. The residents and businesses in False Pass will be the customers. The current electric rate for Residential Customers and Community Facilities is $.42/kWh. Commercial Customers pay $.36/kWh. These rates will be used until the system has been in operation for several months and a clear picture of energy savings is developed. At that time a new rate may be implemented, but the savings will more likely go towards a Replacement and Repairs account. The rates will be reviewed annually. It is hopes that performance of the high penetration system will warrant further rate reductions. The council is conservative in its predictions, but very hopeful there will be further rate reductions. The rate of return does not apply at this stage. The City of False Pass as a whole wins big by reducing the need to import fuel. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Marsh Creek LLC provided the costs for the wind project design and pricing for wind turbines. Sources cited for potential wind energy savings and costs came from the AEP document downloaded from the AEA site. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 18 of 26 7/1/2013 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. Class III Wind Resource Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank) i. Number of generators/boilers/other 3 generators ii. Rated capacity of generators/boilers/other 75kVV, 125kVV, 175kVV iii. Generator/boilers/other type All three are John Deere Diesel Engines iv. Age of generators/boilers/other Not Available v. Efficiency of generators/boilers/other 11.43 kWh/gal b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $22,123 ii. Annual O&M cost for non-labor $17,034 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] 706,037 kWh ii. Fuel usage Diesel [gal] 53,153 gal Other iii. Peak Load 190 kW iv. Average Load 66 kW v. Minimum Load 56 kW vi. Efficiency 13.28 kWh/gallon generated vii. Future trends The community load varies with Fish Processor activities. We expect this to continue. d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 19 of 26 7/1/2013 vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood or pellets [cords, green tons, dry tons] iv. Other Project Cost a) Total capital cost of new system b) Development cost c) Annual O&M cost of new system d) Annual fuel cost Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat iii. Transportation b) Current price of displaced fuel c) Other economic benefits Sale of green tags if project is constructed d) Alaska public benefits Power Purchase/Sales Price a) Price for power purchase/sale Project Analysis Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 20 of 26 7/1/2013 a) Basic Economic Analysis Project benefit/cost ratio Payback (years) 4.4.5 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area. If the is for a PCE eligible utility please discus what the expected impact would be for both pre and post PCE. The current electric rate for PCE customers is $.42/kWh with a PCE rate of $.2777, making an effective rate of $.1430 for the first 500 kWhs of usage for Residential Customers and all of the Community Facility usage. The Non-PCE customer rate for Commercial and Federal/State customers is $.36/kWh. These rates are so low only because the City of False Pass subsidizes the fuel costs to their electric utility with CDQ monies. Less fuel usage will not change the rates, but will allow the City of False Pass to use that money now used to subsidize fuel costs towards maintenance on the added equipment and a Replacement and Repairs account. The PCE rate will be reduced because of less fuel, but the decrease in fuel use will be offset by an increase in O&M costs. It may not be totally equivalent but it will be close. SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project The purpose of this feasibility study is to find the most appropriate turbine design to maximize dollars saved as well as fuel displaced. The exact fuel displacement is unknown at this time and the objective of this study. According to ISER economic valuations, a renewable wind project in False Pass could displace 9,742 gallons of diesel oil per year at a savings of $56,000 annually. There have been no Proposed Power Purchase Agreement price, RCA tariff: or cost based rates for the proposed wind-diesel system developed at this time. The people of False Pass would like to be less dependent on the variable price of diesel fuel, lessen the environmental risks of fuel transport and storage hazards by requiring less diesel fuel to power their community. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 21 of 26 7/1/2013 Tax credits are not available for this project. This project will not sell an appreciable quantity of green tags. The carbon offset value may be higher by selling green power to the fish plant so that they can advertise their product as being produced by green power. Non-economic benefits to Alaskans over the lifetime of the project are the obvious avoidance of fuel transport and fuel spill risks in addition to the reduction in emissions. The people of False Pass would like to be less dependent on the variable price of diesel fuel, lessen the environmental risks of fuel transport and storage hazards by requiring less diesel fuel to power their community. 5.1.1 Public Benefit for Projects with Private Sector Sales Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief descr iption of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. Renewable energy resource availability (kWh per month) N/A Estimated sales (kWh) N/A Revenue for displacing diesel generation for use at privet sector businesses ($) N/A Estimated sales (kWh) N/A Revenue for displacing diesel generation for use by the Alaskan public ($) N/A 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 Sustainability of this project will rely on the village of False Pass operating the turbines properly and servicing them regularly according to maintenance protocols. There will be a learning curve in operating the proposed wind-diesel system. Adequate training and support has been budgeted, and will be provided by Marsh Creek under a 5 year O&M service agreement. The Utility will incorporate flat-rate O&M costs into its rate structure to cover the costs of operating and maintaining the renewable energy infrastructure. This service agreement will consist of training, operations assistance, and storage of spare parts. This style of service agreement offered by Marsh Creek is working successfully in the village of Kokhanok. Selection of proper O&M protocols will take into account surrounding community systems already in existence. This will positively contribute to the wind market penetration to support trained personnel. False Pass currently spends $22,123 on labor O&M and $17,034 on non-labor O&M. O&M Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 22 of 26 7/1/2013 costs will increase further with new equipment but fuel savings will offset these costs. We will report savings and benefits in compliance with AEA’s requirements. Similar information will also be included in the annual PCE report. 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. The Aleutians East Borough was awarded a $25,000 grant from the Alaska Energy Authority on July 27, 2009 to perform a renewable energy resource feasibility study for the communiti es of Cold Bay, False Pass, and Nelson Lagoon (the AEB contributed $5,000 cash and $10,000 in-kind to the project). The study proj ect was completed on May 18, 2010 and submitted to the AEA on June 2, 2010 . The study contains an analysis of existing energy power systems, potential renewable energy resources, and recommendations for renewable energy projects in the three communities. The study provides the basis for much of the information contained in this grant. The City of False Pass and the Aleutians East Borough are currently r eceiving assistance from the Aleutian Pribilof Island Association and Marsh Creek, Inc. to follow-up on the project recommendations contained in the completed Renewable Energy Feasibility Study. Specifically, we are refining the type of equipment specified in the plan as well as developing work plans for project implementation. This work also provides the basis for much of the information in this application. With this additional work - completion of feasibility and design studies, the City of False Pass Electrical Utility will be ready to proceed immediately. Another renewable energy project is currently proposed for the village of False Pass. A tidal energy project located in Isanotski Strait would offset over 30% of False Pass’s current electrical load. This project is currently seeking funds for feasibility testing through the renewable energy fund (REF). Our proposed wind-diesel project and the proposed tidal energy project are complementary projects and could be developed simultaneously in False Pass. No political, economic, of engineering hurdles exist that would prevent both projects from concurrent construction in False Pass. 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, 2013. Please see the enclosed resolution from the village of False Pass, resolution from Isanotski Corporation, and letter of support from the Aleutian Pribilof Islands Association, Inc. SECTION 9 – GRAN T 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 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 23 of 26 7/1/2013 as an applicant. Provide a narrative summary regarding funding source and your financial commitment to the project Funding in the amount of $47,050.00 is requested from the Renewable Energy Fund for this project. In-kind contribution in the amount of $5,000.00 is dedicated to this project. Total grant costs sum to $52,050.00. 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. Once turbines have been constructed, the Supervisory Control and Data Acquisition System (SCADA) on the current powerplant will be programmed to collect necessary energy production and load information to support reporting requirements. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 24 of 26 7/1/2013 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 Grant Administrator, Shawn Calfa, at scalfa@aidea.org. Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. ) $ $ $ FAA Permit Applications 3/1/2014 $ $ $ Heat Recovery and Met Tower Equipment 9/1/2014 $25,000.00 $ $25,000.00 Heat Recovery and Met Tower Installation 9/1/2014 $6,750.00 $4,000.00 Cash/In-Kind $10,750.00 HOMER analysis 7/1/2015 $ $ $ Down East, HOMER, WASP modeling 7/1/2015 $4,500.00 $ Cash/In-Kind $4,500.00 CDR Revisions / Updates 7/1/2015 $10,800.00 $1,000.00 Cash/In-Kind $11,800.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $47,050.00 $5,000.00 $52,050.00 Budget Categories: Direct Labor & Benefits $20,050.00 $4,000.00 $24,050.00 Travel & Per Diem $2,000.00 $500.00 $2,500.00 Equipment $ $500.00 $500.00 Materials & Supplies $25,000.00 $ $25,000.00 Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $47,050.00 $5,000.00 $52,050.00 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 25 of 26 7/1/2013 SECTION 10 – AUTHORIZED SIGNERS FORM Community/Grantee Name: City of False Pass Regular Election is held: October 2 at city office Date: Authorized Grant Signer(s): Printed Name Title Term Signature Tom Hoblet Mayor 10/2012 I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Grantee Contact Information: Mailing Address: PO Box 50, False Pass, AK 99583 Phone Number: 907-548-2319 Fax Number: 907-548-2214 E-mail Address: cityoffalsepass@ak.net Federal Tax ID #: 92-0135411 Please submit an updated form whenever there is a change to the above information. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 26 of 26 7/1/2013 SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. 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 heat projects only: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. - Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. An electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Tom Hoblett Signature Title Mayor Date . . .