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HomeMy WebLinkAboutCascadeCreekFeasibilityStudy_GrantApplication_NoResNoAddlInfo GRANT APPLICATION – FOR – CASCADE CREEK HYDROELECTRIC PROJECT FEASIBILITY STUDY SEPTEMBER 2013 – SUBMITTED TO – ALASKA ENERGY AUTHORITY RENEWABLE ENERGY GRANT PROGRAM – ROUND VII RFA #AEA-14-006 – SUBMITTED BY – BLUE HOLE PROPERTIES, LLC HC-1 Box 80 VALDEZ, AK 99686-9705 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 2 of 23 7/1/2013 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) BLUE HOLE PROPERTIES, LLC (BHP) Type of Entity: INDEPENDENT POWER PRODUCER Fiscal Year End DECEMBER 31 Tax ID # 27-48449445 Tax Status: X For-profit Non-profit Government ( check one) Date of last financial statement audit: None. BHP is not required to undergo financial audits. Mailing Address HC-1 BOX 80 VALDEZ, AK 99686-9705 Physical Address MP 35 RICHARDSON HIGHWAY VALDEZ, AK 99686 Telephone 907-835-3535 Fax 307-333-0066 Email JEFF@TSAINA.COM 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name JEFF FRASER INGRID FRASER Title MEMBER MEMBER Mailing Address HC-1 BOX 80 VALDEZ, AK 99686-9705 Telephone 907-835-3535 Fax 307-333-0066 Email JEFF@TSAINA.COM INGRID@TSAINA.COM 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 x 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 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 23 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. CASCADE CREEK HYDROELECTRIC PROJECT FEASIBILITY 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. The project is located on Cascade Creek at approximately mile 35 of the Richardson Highway. This project is located at approximately 61.19673N, 145.552136W. The project is located within sections 3 and 10 of T8S R2W (Copper River Meridian). The project area is shown on USGS quad map Valdez A5. See project maps in Appendix F. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Communities that will benefit from this project include those served by Copper Valley Electric Association, Inc. (CVEA), which includes Valdez, Glennallen, Gakona, Gulkana, Tazlina, Copper Center, Kluti- Kaah, Copperville, Kenny Lake, Tolsona, Mendeltna, Nelchina, Eureka, and Sheep Mountain. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels (excluding heat-only) X 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 23 7/1/2013 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. The proposed project is an approximately 200 kW run-of-river hydroelectric project on Cascade Creek at MP 35 of the Richardson Highway. The project would provide power to CVEA via a proposed 14-mile line extension or tie into the 138 kV transmission line that runs within ½ mile of the project site. 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.) The project will help CVEA fulfill its vision to reduce or eliminate its dependence on fossil fuel and stabilize its generation costs with regional, sustainable resources. Cascade Creek will be a fuel savings project which leads to lower cost and stable energy for CVEA’s members by displacing more costly diesel-fueled electricity generation. This project will lower CVEA’s fuel expense, providing a public benefit to CVEA ratepayers, and increasing the fuel diversity and sustainability of the region’s energy supplies, and improving air quality in Valdez and Glennallen by reducing local power plant emissions. Operating and maintaining this project will provide local employment. Also, the project trails can provide improved access to alpine areas, providing new hiking or hunting destinations that will help bolster the local tourism and hospitality industries. 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 proposed cost of the feasibility study is $200,000. BHP requests $170,000 in grant funds and is providing $30,000 in match from its own resources for the study. BHP will provide cash match, in-kind labor and equipment support for the project. Potential in-kind match includes lodging, meals, and transportation personnel performing field work, including helicopter support to mobilize personnel to the project site. 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 $170,000 2.7.2 Cash match to be provided $ 14,000 2.7.3 In-kind match to be provided $ 16,000 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) $200,000 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 5 of 23 7/1/2013 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. $2.25 million (depending on configuration) 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects. Not applicable (feasibility stage) 2.7.9 Estimated Direct Financial Benefit (Savings) $6.19 million (depending on configuration) 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. No quantifiable financial benefits, see narrative. . 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. Mr. Jeff Fraser of BHP will manage the project. Mr. Fraser has been responsible for developing and implementing the business plan for the new Tsaina Lodge which opened in 2012. Responsibilities included overseeing construction of the new state-of-the-art main lodge building, guest cabins, and associated infrastructure. Mr. Fraser has also successfully managed the hydro reconnaissance efforts that have been completed to date. His resume is included in Appendix A to this application. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 6 of 23 7/1/2013 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. Schedule for Feasibility Study Milestones Tasks Start Date End Date Grant Agreement with AEA Sign Grant Agreement July 2014 -- 1. Project Management, Scoping and Contractor Solicitation Sign Contract Aug. 2014 -- 2. Detailed Energy Resource Analysis Hydrology Study Sept. 2014 Jul. 2015 Geotechnical Studies Sept. 2014 Jul. 2015 3. Identify land and Regulatory Issues Land / Fish / Wildlife Study June 2015 Aug. 2015 4. Permitting and Environmental Analysis Jan. 2015 April 2015 5. Market Analysis Jan. 2015 April 2015 6. Assessment of Alternatives May. 2015 Jun. 2015 7. Conceptual Design Analysis and Cost Estimate Jun. 2015 Jul. 2015 8. Detailed Economic and Financial Analysis Jul. 2015 Sep. 2015 9. Business and Operations Plans Aug. 2015 Sep. 2015 10. Draft Final Report Jun. 2015 Sep. 2015 11. Final Report Address comments Sep. 2015 Oct. 2015 Schedule is based on timely signing of grant agreement. Tasks are based on months from grant agreement signing. An estimated overall project development schedule is provided below. Reconnaissance Studies: Completed 2012 Feasibility Study: 2014 to 2015 Design and Permitting: 2016 to 2017 Construction: 2018 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. BHP currently owns and operates the Tsaina Lodge in Thompson Pass, adjacent to the project site. BHP will make site personnel available to support and/or assist in the field work to complete the feasibility study, such as monitoring the stream gauge or helping to mobilize personnel to the project site near the lodge. Tsaina Lodge is a world-class destination for heli- skiing and heli-fishing, so is capable of helicopter transport of personnel for field studies. BHP intends to hire Polarconsult Alaska, Inc. as the lead consultant for the feasibility study. Polarconsult is a leading engineering consulting firm in the study, design, and permitting of micro hydro facilities in Alaska. Polarconsult principals have successfully built and operate two Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 7 of 23 7/1/2013 similar run-of-river projects in southcentral Alaska, and permitted, designed and assisted with construction management for the remote Chuniisax Creek hydro project in Atka, Alaska, commissioned in 2012. Since its formation in 1978, Polarconsult has provided professional services ranging from reconnaissance investigations to construction management for over 30 hydroelectric projects located throughout Alaska. 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. Jeff Fraser of BHP will be the liaison between BHP, Polarconsult, and the Alaska Energy Authority for the duration of this project. Mr. Fraser will submit written quarterly progress and financial reports to the Alaska Energy Authority for the duration of the project. Quarterly reports will describe work completed to date, accomplished milestones, and any modifications to the scope of the project. Mr. Fraser will contact the AEA grant manager in a timely manner should issues arise that require their attention. 3.5 Project Risk Discuss potential problems and how you would address them. BHP has been investigating the hydropower potential of Cascade Creek since acquiring the Tsaina Lodge property in 2011. These studies have confirmed that the resource is available and there are no environmental or regulatory barriers to the project. As the project is still in the study phase, there is limited risk associated with the project. In the event the studies conclude the project is not feasible, BHP will not pursue the project and there is no risk. Various problems may be encountered in the course of studies and field work for the project. Such problems will be addressed by hiring qualified and experienced individuals to perform these studies and work. Such individuals are capable of recognizing problems early on and properly handling them when they do occur. 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. Cascade Creek drains a 6.7 square mile basin in the Chugach Range northeast of Valdez, Alaska. The headwaters rise from an alpine plateau with a south-facing aspect at approximately 4,000 ft. elevation that straddles the divide between the Lowe and Tsaina Rivers. There are several sizable lakes on this plateau that comprise approximately 3% of the basin by area. Peaks surrounding this plateau are 5,000 to 7,000 ft elevation. Cascade Creek drains north from this Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 8 of 23 7/1/2013 plateau towards the Tsaina River, passing through a mountain gap at 3,500 to 2,800 ft. elevation. Glaciers occurring on the west side of the mountain gap cover approximately 20% of the creek’s basin. Downstream of this gap, the creek has formed an incised canyon 50 to 100 ft. deep, and drops down to the Tsaina Valley floor at grades of 30 to 40%, discharging to the Tsaina River at approximately 1,600 ft. elevation. The lodge is located just upstream of (and across the Richardson Highway from) the mouth of the creek at approximately 1,620 ft. elevation. Possible diversion sites for a run-of-river hydro occur between approximately 1,670 to 2,300 ft. elevation, roughly ¼ to ¾ mile from the lodge property. Assuming the powerhouse would be sited on the lodge property, hydro projects could be developed with a gross head of approximately 50 to 680 feet. The region receives approximately 100 to 120 inches per year of precipitation.1 Review of available regional hydrology data and past hydrology field work suggest Cascade Creek’s hydrology is similar to the nearby Lowe River.2 This indicates sustained summer flows (approximately June 1 to September 15) exceeding 20 to 60 cubic feet per second (cfs) and annual low flows of 1 to 2 cfs occurring in April. Full development of the resource could produce an estimated 800 kW. Hydropower is a mature technology with numerous successful installations throughout Alaska. The design life of this project would be 50 years. The market for this project is CVEA. CVEA currently relies on a mix of storage hydropower (Solomon Gulch), diesel generation, and a cogen system located at a refinery in Valdez. CVEA is also developing a new 6.5 MW run-of-river hydroelectric project on Allison Creek near Valdez. The Cascade Creek project would be complimentary to the existing and planned hydroelectric projects on the CVEA system. In the early years of the project, some of the energy would be in excess of current demand, but fall, winter, and spring output would immediately displace diesel fuel. As CVEA load increases over time (or if the trans Alaska pipeline marine terminal in Valdez is connected to CVEA), then 100% of the project output will be utilized to offset diesel-fired electricity generation. 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. CVEA generates electrical power at its two diesel plants, one in Valdez and one in Glennallen, a Cogeneration project at the refinery in Valdez, and the12-megawatt Solomon Gulch hydro facility in Valdez. Power is transferred between the two districts on a 106-mile 138 kV transmission line through Thompson Pass and the Chugach Mountains. Detailed descriptions of these facilities given below are condensed from CVEA’s 2012 grant application for the Allison Creek project. The CVEA Cogeneration Plant is a state-of-the-art facility located at the Petro Star Valdez Refinery. It is a 5.2 megawatt Solar turbine and heat recovery unit that utilizes "light straight run" (LSR) as its fuel source and provides exhaust heat to the attached crude heater for Petro Star’s use in refinery operations. The plant was completed in 2000 and is remotely controlled from the Solomon Gulch hydroelectric facility. Efficiency for this unit is 9.3 kWhs per gallon for production of electricity but the project sells heat at a combined efficiency of 75-80%. Annual 1 As interpreted from Plate 1, USGS Water Resources Investigation Report 93-4188. 2 See Polarconsult Hydrology Memo, February 15, 2013. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 9 of 23 7/1/2013 O&M costs for 2012 are budgeted at $47,700 which does not include labor. The Glennallen Diesel Plant (GDP) is the oldest of CVEA’s three thermal plants. It has expanded over the years to meet the needs of CVEA customers. The available generation capacity of the plant is 11 megawatts. The GDP houses a total of seven diesel engines; three Fairbanks Morse 38D8 1/8 opposed piston units, two Enterprise DSR 46 units, one Caterpillar 3516B unit, and one EMD unit with a capacity of 2.8 megawatts. The five largest units are remotely controlled from the Solomon Gulch hydroelectric facility. The current average efficiency is 14 kWhs per gallon. Annual O&M costs for 2012 are budgeted at $274,000 which does not include labor. The Valdez Diesel Plant (VDP) was constructed after the 1964 Good Friday Earthquake that caused the city of Valdez to relocate to its present location. The plant houses one Fairbanks Morse 38D8 1/8 opposed piston unit, three Enterprise DSR 46 units, and a trailer-mounted Solar Centaur turbine unit. The available generation capacity of this plant is 8.9 megawatts. The three largest units are remotely controlled from the Solomon Gulch hydroelectric facility. The average efficiency is 13.7 kWhs per gallon. Annual O&M costs for 2012 are budgeted at $88,200 which does not include labor. Previously owned by the Four Dam Pool Power Agency, CVEA acquired ownership of the Solomon Gulch hydroelectric facility in February 2009. The 12-megawatt Solomon Gulch hydroelectric facility is located on Dayville Road in Valdez. Power is generated by two Fuji Francis water turbines. The facility began providing power to CVEA customers in 1982. CVEA operates its dispatch center from this facility. The plant is manned 24 hours a day, seven days a week. Plant operators are responsible for the operation of up to four generation plants at one time via remote control operations. From the hydro plant, operators can start and stop units in any or all of CVEA's other three generation facilities: Glennallen diesel, Valdez diesel, or the cogeneration plant. Annual O&M costs for 2012 are budgeted at $282,500 which does not include labor. CVEA's service areas are tied together with a 106-mile, 138-kilovolt transmission line that is owned and operated by CVEA. The transmission line provides a link to all four generating plants. Power can flow from any of the generating facilities to end consumers. Historically, power flows from the Solomon Gulch hydro plant to the Copper River Basin District during the summer months. The transmission line traverses severe terrain between the two districts and parts of it, in the Thompson Pass area, has severe avalanche risk. The transmission line was last damaged by an avalanche in December 2009. The Cascade Creek project is located on the north (Glennallen) side of the highest-risk segment of the transmission line. 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. According to CVEA’s 2012 grant application for the Allison Creek project, CVEA currently generates approximately 51% of its energy supply with hydro (Solomon Gulch), with the balance coming from either the cogen or diesel. This is estimated to increase to approximately 66% once Allison Creek is operational in 2015 or 2016. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 10 of 23 7/1/2013 The graph below illustrates CVEA’s generation portfolio before Allison Creek and after. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The Cascade Creek project would have a positive impact on CVEA’s members by lowering the cost of power and would allow CVEA to not be as dependent on fossil fuels as it is currently. In addition, the project will provide a long term energy supply at a stable price. 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 specific project design would depend on the preferred project configuration that would be determined by the proposed feasibility study. This application assumes development of a 200 kW project. The general project layout and topography is shown on the project maps in Appendix F. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 11 of 23 7/1/2013 This configuration would feature the following major components: 1. A diversion structure located on Cascade Creek. This structure would likely be constructed of reinforced concrete or timber. The diversion site and elevation would be determined by the feasibility study. 2. A penstock up to 4,000 feet long and approximately 12 inches in diameter. The length and diameter of the penstock would depend on the selected diversion site and design flow for the project. The penstock would likely be buried for frost protection where possible. 3. A powerhouse fitted with a turbine and generator and associated controls and switchgear. The type of turbine will depend on the design head and flow for the project. The 200 kW configuration would most likely utilize a single two-jet Pelton turbine and synchronous generator. 4. A connection to the CVEA system. CVEA is currently studying potential interconnection methods for BHP. The connection will either consist of a distribution line extension, a substation on the 138 kV transmission line, or a capacitive coupling device of the type used to provide power from the 138-kV line to the AK DOT maintenance facility in Thompson Pass. The currently favored connection is a distribution line extension. 5. Access roads and trails as needed for project construction, operation, and maintenance. The project’s installed capacity is estimated at 200 kW. The capacity factor is estimated to be 68%. Annual energy generation is estimated at 1,040 MWh annually. 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. Land where the powerhouse and tailrace would be located is owned by BHP. Land where the project penstock and diversion would be located is patented to the State of Alaska. See land ownership maps in Appendix F. 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 The project is expected to require the following major permits for construction. Initial consultations with resource agencies have been completed, and are described in Appendix F.4. 1. The project is not expected to fall under FERC jurisdiction. See reconnaissance assessment memo in Appendix F.4. 2. Land authorizations from the State of Alaska for the access, penstock and diversion. Land authorizations could be in the form of easements and/or long term leases. 3. Fish Habitat Permit. Cascade Creek and the Tsaina River are not anadromous fish habitat, but some resident fish species may be present (see map in Appendix F.1). 4. U.S. Department of Army permits for work in waters of the U.S. including wetlands. 5. Alaska Department of Natural Resources Water Rights. 6. RCA authorization. A Utility Certificate from the Regulatory Commission of Alaska may be required depending on how the BHP proceeds with the project. 7. Dam Safety permit (or finding of non-jurisdiction) from the Alaska Department of Natural Resources. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 12 of 23 7/1/2013 Once a decision to develop the project is made (at the conclusion of the Feasibility Study), permits are estimated to take 1 to 2 years to obtain. This estimate will be refined once the project resource issues, configuration and land status is refined. The longer timeframe would correlate with more challenging resource issues or requirements for detailed field studies. BHP’s consultants have already engaged with resource agencies regarding this project and have not identified any permitting barriers. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed:  Threatened or endangered species  Habitat issues  Wetlands and other protected areas  Archaeological and historical resources  Land development constraints  Telecommunications interference  Aviation considerations  Visual, aesthetics impacts  Identify and discuss other potential barriers The following assessment is based on currently available information. Threatened or endangered species: None known. Habitat issues: None known. Wetlands and other protected areas: A wetlands survey has not been completed of the project area. Terrain in the access and penstock areas is generally steep and is believed to be predominantly upland. Some incidental wetlands may be filled by the project. The total area of impacted wetland will likely fall under the provisions of a nationwide permit. Archeological resources: None known. Land development constraints: None known. Telecommunications Interference: None known. Aviation considerations: None known. Visual, aesthetics impacts: The penstock / access route would be visible to southbound travelers on the Richardson Highway for approximately ½ mile before the Tsaina Lodge (see photographs in Appendix F.2). It would not generally be visible to northbound travelers or on other stretches of the highway. The visual impact of the project would be similar to the existing gravel roads and trails used to access the CVEA transmission line and the trans-Alaska pipeline along this part of the Richardson Highway. Other potential barriers: no other environmental 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 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 13 of 23 7/1/2013 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 Estimated Total Project Cost The estimated total installed cost of the project is $2.25 million. Total preconstruction cost is estimated at $340,000. The construction cost is estimated at $1.91 million. Cost for this Phase, Requested Grant Funding, and Matching Funds The cost of the feasibility study is $200,000. BHP requests $170,000 in grant funds and is providing $30,000 in match for the study. BHP will provide a cash match as well as in-kind labor logistics, and equipment support for the project. BHP has already funded reconnaissance level studies of this project site using its own resources. Funding Sources and Financing Plan Should the project be viable, BHP will finance the project using its own resources and/or private sector financing. State or Federal grant or loan programs would also be considered to fund and/or finance the project. 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.) The project concept is not sufficiently developed at this point in time to provide detailed O&M cost estimates. Existing maintenance personnel at the Tsaina Lodge would be trained to perform routine maintenance and operations functions. Specialized maintenance or repair activities would be performed by qualified individuals on an as-needed basis in accordance with preventative maintenance schedules and project requirements. This is similar to BHP’s existing practice for O&M of the Lodge’s on-site diesel generators. No factors are currently known that would result in abnormally high or low O&M costs compared to typical costs for small run-of-river hydroelectric projects in Alaska. 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 net output of the project would be sold to CVEA at a fixed rate similar to CVEA’ avoided cost of energy. BHP has not engaged CVEA in detailed negotiations regarding purchase price. In the summer months, the avoided cost is approximately $0.068 per kWh, and in the winter months CVEA’s avoided cost is approximately $0.20 to $0.25 per kWh. This application assumes a purchase price of $0.20 per kWh for 65% of the project’s output over the life of the project. The remaining 65% of the project output would be available for purchase by CVEA, but is assumed to be in excess of CVEA demand and not generate project revenue. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 14 of 23 7/1/2013 BHP acknowledges that if AEA grant funds are used for construction, the purchase price and rate of return on the project would be subject to AEA review and approval. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please fill out the form provided below. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 15 of 23 7/1/2013 Renewable Energy Source Cascade Creek Hydroelectric Project The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Estimated capacity factor of 0.68 (68%) 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 Railbelt3 grid, leave this section blank) i. Number of generators/boilers/other 14 (see section 4.2.1 for details) ii. Rated capacity of generators/boilers/other 37.1 MW (see section 4.2.1 for details) iii. Generator/boilers/other type Caterpillar, Enterprise, Fairbanks-Morse, Solar. (see section 4.2.1 for details) iv. Age of generators/boilers/other Ranges from 4 to 61 years (see section 4.2.1 for details) v. Efficiency of generators/boilers/other Average is 14.0 kwh/gallon. Range of 9.3 – 15.2 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 $1.34 million (2012 estimate by CVEA) ii. Annual O&M cost for non-labor $0.7 million (2012 estimate by CVEA) 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] 80,400 MWh (2011 gross generation) ii. Fuel usage Diesel [gal] 1.76 million gallons (2011) Other 1.88 million gallons of light straight run (2011) iii. Peak Load 13.5 MW (2011) iv. Average Load 12.3 MW (2011) v. Minimum Load 11.4 MW (2011) vi. Efficiency 14.0 kWh / gallon system average (2011) vii. Future trends Minimal growth, however a significant block of new load (2-5 MW) could be added if existing industry connects to CVEA (Valdez Marine Terminal). 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] -- 3 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 16 of 23 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] 200 kW b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] Approximately 1,040,000 kWh annually 65% of output (676,000 kWh) is assumed to be sold to CVEA to displace fuel. Estimated year 1 sales are 50%, and estimated year 50 sales are 100%. kWh sales are levelized at 65% over the 50-year economic life for economic analysis in this application. 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 $2.25 million b) Development cost $340,000 c) Annual O&M cost of new system $16,000 d) Annual fuel cost $0 Project Benefits a) Amount of fuel displaced for i. Electricity ~2,420,000 gallons of fuel oil and equivalents (over 50 year life at 65% utilization of project output) ii. Heat -- iii. Transportation -- b) Current price of displaced fuel $3.63 per gallon (CVEA 2012) c) Other economic benefits -- d) Alaska public benefits $175,300 annually in avoided fuel cost. (see ISER spreadsheet) Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 17 of 23 7/1/2013 Power Purchase/Sales Price a) Price for power purchase/sale $0.20 to 0.25 per kWh estimated ($0.20 / kWh is assumed for this application) Project Analysis a) Basic Economic Analysis Project benefit/cost ratio $6.19 million / 1.96 million = 3.15 (assuming sale of 65% of kWh generated over project life) Payback (years) $2.25 million / $175,300 = simple payback 12.8 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. This project would be revenue neutral for near-term electric rates in the CVEA system. This is due to the relatively small size of the project compared to the overall CVEA load (at 65% sales, the project would provide approximately 0.8% of CVEA’s load). In the long term, the project is expected to result in lower rates and more stable rates for CVEA customers than would occur without the project. These savings would be due to CVEA’s reduced exposure to environmental compliance costs (clean air act compliance, carbon emissions, fuel storage and handling, etc.) and reduced exposure to fuel costs. 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 estimated annual fuel displacement by the project would be approximately 48,300 gallons of fuel oil or equivalents (LSR) burned by CVEA. This is based on 676,000 kWh of hydro sales (65% of annual generating potential) and a fuel efficiency of 14 kWh per gallon at CVEA. At an assumed fuel cost of $3.63 per gallon, this is valued at $175,300 annually. A wholesale power purchase contract with CVEA at a fixed price in the range of $0.20 to 0.25 per kWh is assumed. A rate of $0.20/kWh is used for this application. This is approximately Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 18 of 23 7/1/2013 equal to CVEA’s current avoided cost of fuel. At 65% sales and a price of $0.20 per kWh, gross project revenues would be approximately $135,200 annually. Additional revenue streams could include the sale of green tags or various federal subsidies (tax credits, etc.), however these are not expected to be significant and are not included in the application. All communities served by CVEA would benefit from this project. This project would increase the amount of renewable energy available on the CVEA system, decreasing dependence on fossil fuels which are costly and have the potential for future carbon taxes. This project would also provide the following non-economic benefits: 1. The access trails could be used for public access for hiking, hunting, or other recreational pursuits. This would enhance the local tourist industry by providing another local destination for tourists. 2. The project would create part-time local jobs for periodic maintenance activities such as trail repair and equipment maintenance. 3. The project would provide useful information for other hydroelectric projects in the state regarding seasonal or year-round operation of run-of-river hydroelectric projects in cold climates. Specific information would include operation of intakes, penstock icing, and techniques to minimize O&M requirements for winter operation. 4. The project would decrease diesel / cogen power plant emissions in Glennallen and Valdez, helping to improve air quality in both communities. 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 description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. Not Applicable. The project’s full output is assumed to be available for purchase by CVEA subject to their system load. Renewable energy resource availability (kWh per month) NA Estimated sales (kWh) NA Revenue for displacing diesel generation for use at private sector businesses ($) NA Estimated sales (kWh) NA Revenue for displacing diesel generation for use by the Alaskan public ($) NA Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 19 of 23 7/1/2013 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 The project would likely be developed, owned, and operated by an LLC formed as a subsidiary to or affiliate of BHP. The project would function as an independent power producer, selling power to CVEA. The project is expected to be eligible for FERC Qualified Facility status, which confers certain rights in negotiating with utilities under federal and state law. Maintenance and operations would be funded from project revenues. The fact that the powerhouse and project is co-located with BHP’s Tsaina Lodge means that lodge personnel and caretakers can also perform routine operation and maintenance duties for the hydro at minimal incremental cost. Operational costs would include periodic scheduled overhauls of the turbines, generators, and ancillary equipment, reservoir and intake maintenance (trash rack clearing, etc), and related hydro project operations. Potential operational issues would include system reliability and functionality during the winter months, operation and protection of infrastructure during flood events, and CVEA’s ability to purchase project output differing from BHP forecasts. These and other considerations would be evaluated as part of the feasibility study. BHP already operates on-site diesel generators at the Tsaina Lodge. These generators would remain in service as backup generation for the lodge during CVEA outages. They would not be configured to feed into the CVEA system. BHP commits to reporting the savings and benefits associated with the Cascade Creek hydroelectric project should it be developed with state grant funds. 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. BHP has previously paid consultants to complete reconnaissance-level studies at Cascade Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 20 of 23 7/1/2013 Creek without government assistance. If this study is funded, BHP is prepared to immediately commence field studies and other time-critical activities for the study. BHP has an existing relationship with Polarconsult Alaska, Inc. and will coordinate with Polarconsult to ensure timely completion of seasonally sensitive activities. 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. Attached to this application are letters of support for this study. BHP is not aware of any opposition to this project. SECTION 9 – GRANT BUDGET Tell us how much you are seeking in grant funds. Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Provide a narrative summary regarding funding source and your financial commitment to the project BHP is requesting a grant in the amount of $170,000 for a feasibility study of the Cascade Creek Hydro Project. BHP has funded reconnaissance-level studies from its own resources, and commits to providing match of $30,000 in cash and in-kind to complete this study. 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. BHP expects that the control and monitoring equipment installed for the project will be capable of providing the necessary data to fulfill AEA’s annual reporting requirements. BHP estimates that the annual cost of complying with AEA’s reporting requirement will be approximately $1,000 for the labor required to compile and reduce data and operating information and prepare the annual report. Over ten years, the total cost is estimated at $10,000. 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. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 21 of 23 7/1/2013 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 Grant Agreement with AEA Notice to Proceed = 0 months 1. Project Management, Scoping and Contractor Solicitation End of 1st month $0 $1,000 BHP in-kind $1,000 2. Detailed Energy Resource Analysis Hydrology Study End of 12th month $30,000 $5,000 BHP in-kind $35,000 Geotechnical Studies End of 12th month $15,000 $5,000 BHP in-kind $20,000 3. Identify land and Regulatory Issues Land / Fish / Wildlife Study End of 13th month $15,000 $5,000 BHP in-kind $20,000 4. Permitting and Environmental Analysis End of 9th month $8,000 $2,000 BHP Cash $10,000 5. Market Analysis End of 9th month $4,000 $1,000 BHP Cash $5,000 6. Assessment of Alternatives End of 11th month $18,000 $2,000 BHP Cash $20,000 7. Conceptual Design Analysis and Cost Estimate End of 12th month $36,500 $3,500 BHP Cash $40,000 8. Detailed Economic and Financial Analysis End of 14th month $18,000 $2,000 BHP Cash $20,000 9. Business and Operations Plans End of 14th month $3,500 $500 BHP Cash $4,000 10. Draft Final Report End of 14th month $18,000 $2,000 BHP Cash $20,000 11. Final Report End of 15th month $4,000 $1,000 BHP Cash $5,000 TOTALS $170,000 $30,000 $200,000 Budget Categories: Direct Labor & Benefits $0 $1,000 BHP $1,000 Travel & Per Diem $0 $15,000 BHP $15,000 Equipment $0 $0 BHP $0 Materials & Supplies $0 $0 BHP $0 Contractual Services $170,000 $14,000 BHP $184,000 Construction Services $0 $0 $ Other $0 $0 $ TOTALS $170,000 $30,000 $200,000 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 22 of 23 7/1/2013 SECTION 10 – AUTHORIZED SIGNERS FORM Community/Grantee Name: BLUE HOLE PROPERTIES, LLC Regular Election is held: N/A Date: Authorized Grant Signer(s): Printed Name Title Term Signature JEFF FRASER MEMBER NA I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature JEFF FRASER MEMBER NA Grantee Contact Information: Mailing Address: HC-1 Box 80 Valdez, AK 99686-9705 Phone Number: 907-835-3535 Fax Number: 307-333-0066 E-mail Address: jeff@tsaina.com Federal Tax ID #: 27-4849445 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 23 of 23 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 Jeff Fraser Signature Title Member, Blue Hole Properties, LLC Date 9/20/13           ATTACHMENT A    PROJECT TEAM CONTACT INFORMATION   AND QUALIFICATIONS            ATTACHMENT B    LETTERS OF SUPPORT            September 24, 2013    Sara Fisher‐Goad, Executive Director  Alaska Energy Authority  813 West Northern Lights Boulevard  Anchorage, Alaska 99503    RE: Tsaina Lodge Cascade Creek Hydro – Feasibility Study    Dear Ms. Fisher‐Goad:    RIM First People supports and asks the state for funding the Tsaina Lodge (Blue Hole Properties, LLC) to  conduct a feasibility study for a proposed run‐of‐river hydroelectric project on Cascade Creek near the  Tsaina Lodge in Thompson Pass north of Valdez.  The project would sell power to Copper Valley Electric  Association, Inc. (CVEA), displacing fuel burned for power generation.      Cascade Creek drains approximately 6.7 square miles of the Chugach Range. The proposed run‐of‐river  hydro project would divert an estimated 5 to 20 cfs from Carlo Creek at an elevation of approximately 2,100  to 2,300 feet, divert it through an approximately 2,000 to 4,000 foot long penstock to a powerhouse on the  lodge property at MP 35 Richardson Highway.  Estimated installed capacity is 200 to 800 kW, and annual  energy generation is estimated at 1,000,000 to 3,000,000 kWh.  The feasibility study would define the most  economic project configuration.    Tsaina Lodge has already completed initial environmental screening and resource agency consultations, and  has not identified any regulatory or permitting barriers to this project.  These reconnaissance assessments  indicate the project would be beneficial to the CVEA system and ratepayers by reducing diesel fuel  consumption and increasing the renewable energy used on the CVEA system.      Thank you for your support of this project and do not hesitate to contact me if you have any further  questions.    Sincerely,      Michael Fredericks  President    cc: Jeff and Ingrid Fraser, Tsaina Lodge  Septembe Sara Fishe Alaska En 813 West Anchorag RE: Tsain Dear Ms. RIM Arch conduct a Tsaina Lo Associatio Cascade C hydro pro 2,100 to 2 on the lod annual en the most e Tsaina Lo and has n assessmen diesel fue Thank yo questions Sincerely, RIM Arch James E. D Managing cc: Jeff an er 24, 2013 er-Goad, Exe nergy Authori Northern Lig ge, Alaska 995 na Lodge Ca Fisher-Goad hitects suppor a feasibility s odge in Thom on, Inc. (CVE Creek drains oject would d 2,300 feet, div dge property a nergy generati economic pro odge has alre not identified nts indicate t l consumptio ou for your su . , hitects, LLC Dougherty, A g Principal - A nd Ingrid Fras cutive Direct ity ghts Boulevar 503 ascade Creek : rts and asks t tudy for a pr mpson Pass no EA), displacin approximatel divert an estim vert it through at MP 35 Ric ion is estimat oject configura ady complete d any regula the project w n and increas upport of thi AIA NCARB Alaska ser, Tsaina Lo tor rd k Hydro – Fea the state for f roposed run-o orth of Valdez ng fuel burned ly 6.7 square mated 5 to 20 h an approxim hardson High ed at 1,000,0 ation. ed initial env atory or perm would be bene sing the renew is project and odge asibility Stud funding the T of-river hydro z. The project d for power g miles of the 0 cfs from Ca mately 2,000 hway. Estima 00 to 3,000,0 vironmental sc mitting barrie eficial to the wable energy u d do not hesi dy Tsaina Lodge oelectric proj t would sell p generation. Chugach Ra arlo Creek at to 4,000 foot ated installed 000 kWh. Th creening and ers to this p CVEA syste used on the C itate to conta (Blue Hole P ject on Casca power to Copp ange. The pro t an elevation t long penstoc capacity is 2 he feasibility s resource age project. The em and ratep CVEA system act me if you Properties, LL ade Creek ne per Valley El oposed run-of n of approxim ck to a power 200 to 800 kW study would d ency consulta ese reconnais payers by red m. u have any fu LC) to ar the lectric f-river mately rhouse W, and define ations, ssance ducing further           ATTACHMENT C    (NOT A HEAT APPLICATION – NOT APPLICABLE)                      ATTACHMENT D    GOVERNING BODY RESOLUTION  Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 23 of 23 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 Jeff Fraser Signature Title Member, Blue Hole Properties, LLC Date 9/20/13           ATTACHMENT E    ELECTRONIC VERSION OF APPLICATION            ATTACHMENT F    ADDITIONAL PROJECT INFORMATION            CASCADE CREEK HYDROELECTRIC PROJECT FEASIBILITY STUDY GRANT APPLICATION   BLUE HOLE PROPERTIES, LLC  APPENDIX F  AEA RFA 2014‐006: ROUND 7, RENEWABLE ENERGY FUND  PAGE 1                      APPENDIX F: SUPPLEMENTAL PROJECT INFORMATION      F1: Project Maps      pages 2‐5  F2: Site Photographs      pages 6‐7  F3: Project Cost Estimate     page 8  F4: Existing Reconnaissance‐Level Assessments   ● Reconnaissance Assessment Memo (Polarconsult, 9/11/2013)  ● Hydrology Memo (Polarconsult, 2/15/2013)  ● Hydro Reconnaissance Memo (Summit, 11/5/2012)  ● Hydro Reconnaissance Memo (Summit, 6/14/2012)  ● Budgetary Quotes for Turbine/Generator Options (Canyon, 6/8/2012)  ● Hydro Reconnaissance Memo (Summit,  2/16/2012)  ● Renewable Strategies Report (YourCleanEnergy, 7/8/2009)    CASCADE CREEK HYDROELECTRIC PROJECT FEASIBILITY STUDY GRANT APPLICATION   BLUE HOLE PROPERTIES, LLC  APPENDIX F  AEA RFA 2014‐006: ROUND 7, RENEWABLE ENERGY FUND  PAGE 2  Appendix F.1:  Project Maps    Map 1:  Project Location  CASCADE CREEK HYDROELECTRIC PROJECT FEASIBILITY STUDY GRANT APPLICATION  BLUE HOLE PROPERTIES, LLC  APPENDIX F AEA RFA 2014‐006: ROUND 7,RENEWABLE ENERGY FUND PAGE 3 Map 2:  General Land Status in Project Area (Downloaded from BLM SDMS Website, September 11, 2013)                       Proposed Project Study AreaTsaina Lodge T8S  T9S R2W   R1WRichardson Highway  CASCADE CREEK HYDROELECTRIC PROJECT FEASIBILITY STUDY GRANT APPLICATION  BLUE HOLE PROPERTIES, LLC  APPENDIX F AEA RFA 2014‐006: ROUND 7,RENEWABLE ENERGY FUND PAGE 4 Map 3:  ADF&G Anadromous Fish Atlas for Project Area (Downloaded from ADFG Website, September 11, 2013)  Nearest Listed Anadromous Fish Habitat (downstream on Little Tonsina River)CascadeCreekRichardson Highway CASCADE CREEK HYDROELECTRIC PROJECT FEASIBILITY STUDY GRANT APPLICATION  BLUE HOLE PROPERTIES, LLC  APPENDIX F AEA RFA 2014‐006: ROUND 7,RENEWABLE ENERGY FUND PAGE 5 Map 4:  Topography in Project Area and Proposed Penstock Profile  CASCADE CREEK HYDROELECTRIC PROJECT FEASIBILITY STUDY GRANT APPLICATION   BLUE HOLE PROPERTIES, LLC  APPENDIX F  AEA RFA 2014‐006: ROUND 7,RENEWABLE ENERGY FUND PAGE 6  Appendix F.2: Site Photographs  Photograph 1:  Lodge Property Looking Southbound Towards Hydro Site                                Photograph 2:  View of Hydro Site from Richardson Highway MP 34, approximately one mile  south of Tsaina Lodge.  Hydro site is obscured by road‐side vegetation.  Approximate penstock /  access route  Image from Google Streetview, imagery ~fall 2011. Image from Google Streetview, imagery ~fall 2011. CASCADE CREEK HYDROELECTRIC PROJECT FEASIBILITY STUDY GRANT APPLICATION   BLUE HOLE PROPERTIES, LLC  APPENDIX F  AEA RFA 2014‐006: ROUND 7,RENEWABLE ENERGY FUND PAGE 7  Photograph 3:  View of Hydro Site from Richardson Highway MP ~34.9, approximately ½ mile  north of Tsaina Lodge.  Hydro site is visible to southbound travelers for approximately ½ mile  from this road cut to the lodge.                                Photograph 4:  Oblique Aerial View of Tsaina Lodge.  Cascade Creek is at picture‐right.                           Hydro Site Tsaina Lodge  Image from Google Streetview, imagery ~fall 2011. CASCADE CREEK HYDROELECTRIC PROJECT FEASIBILITY STUDY GRANT APPLICATION   BLUE HOLE PROPERTIES, LLC  APPENDIX F  AEA RFA 2014‐006: ROUND 7,RENEWABLE ENERGY FUND PAGE 8  Appendix F.3: Preliminary Project Cost Estimate for Cascade Creek  A preliminary cost estimate (Table 1) was developed for Cascade Creek based on the assumed  project configuration shown on the maps in section F.1, project technical data as described in  this application, preliminary estimates of material quantities, and estimated unit costs for these  materials.    Table 1: Preliminary Cascade Creek Hydroelectric Project Cost Estimate  Item Estimated Cost  Preconstruction Cost (reconnaissance, feasibility, design, permitting) $340,000 Construction    Power Line Connection (not including line extension) $40,000   Site Access Roads / Trails $100,000   Diversion / Intake Structure $270,000   Penstock $250,000   Powerhouse Building, Tailrace $130,000   Turbine / Generator $300,000   Controls / Switchgear $60,000   Construction Equipment $90,000   Shipping $80,000 Direct Construction Cost Total $1,320,000   Project Management $70,000   Construction Engineering $70,000 Total Installed Cost $1,800,000   Contingency (25%) $450,000 Project Cost Estimate $2,250,000               ATTACHMENT F.4    PREVIOUS STUDY MEMOS AND INFORMATION