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
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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.
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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
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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
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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.
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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
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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
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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)
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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
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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
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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
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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.
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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
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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.
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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
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ATTACHMENT C
(NOT A HEAT APPLICATION – NOT APPLICABLE)
ATTACHMENT D
GOVERNING BODY RESOLUTION
Renewable Energy Fund Round VII
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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
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