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HomeMy WebLinkAboutOld Harbor Rnd 7 ALL FINALRenewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design and Permitting AEA 2014-006 Application Page 1 of 26 7/2/2013 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Alaska Village Electric Cooperative, Inc. Type of Entity: Not-for-profit Fiscal Year End: December 31 Tax ID # 92-0035763 Tax Status: For-profit X Non-profit Government ( check one) Date of last financial statement audit: March 8, 2013 Mailing Address 4831 Eagle Street Anchorage, AK. 99503 Physical Address 4831 Eagle Street Anchorage, AK. 99503 Telephone 800.478.1818 Fax 800.478.4086 Email sgilbert@avec.org 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Steve Gilbert Title Manager, Projects Development and Key Accounts Mailing Address 4831 Eagle Street Anchorage, AK. 99503 Telephone 907.565.5357 Fax 907.561.2388 Email sgilbert@avec.org 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) X An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or 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 Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 2 of 26 7/1/2013 SECTION 2 – PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Old Harbor Hydroelectric Project  Final Design/Permitting 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. Old Harbor (pop. 193) is located on the southeast coast of Kodiak Island, 70 miles southwest of the City of Kodiak and 322 miles southwest of Anchorage. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. The residents, businesses, local government, and tribe of Old Harbor will be the beneficiaries of this project. 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 X Final Design and Permitting Feasibility and Conceptual Design Construction and Commissioning 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 3 of 26 7/1/2013 The Alaska Village Electric Cooperative (AVEC), the electrical utility provider in Old Harbor, is proposing to complete final design and permitting of a hydroelectric project in Old Harbor, Alaska. The 262 kW (initial; nominal) basin diversion project will be located on East Fork Mountain Creek and Lagoon Creek Tributary. The project will be capable initially of generating an average of about 2,018,924 kWh annually and could grow to an annual generation of 2,725,646 kWh when demand warrants and an additional turbine is installed. The project will run year-round and meet all the existing and future electricity demands of the community. 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.) Detailed benefits of this project are included in Section 5.0 and summarized below: During design (this phase) the following benefits will be realized:  The primary benefit of this project will be to prepare the final design and obtain permits for a hydroelectric facility in Old Harbor. When this work is completed, AVEC will be able to seek and acquire funding for construction of the project.  Collection of field information will benefit the US Fish and Wildlife Service (USFWS) and add to the overall knowledge of the Kodiak National Wildlife Refuge (Refuge). Construction activities will have the following benefits:  The project will have a positive economic impact due to the availability of jobs and need for local services related to construction. After construction many benefits will result:  The project will displace fuel consumed by power and heat generation in Old Harbor. At ISER’s projected fuel costs, the project will save about $ 455,415 during its first year of operation (2017). Over the life of the project, 50 years, the projected savings has a present value of $14.2 million.  New businesses could be established because of stabilized power costs.  Stabilized power costs will allow for improved operation of existing public services.  A new road will be established to the powerhouse, providing easier access to the Refuge giving residents more access to subsistence resources.  The project will improve habitat along the existing ATV trail to Swimming Pond as traffic will flow to the new powerhouse access road.  The community goal of constructing a hydroelectric facility – a goal that has been documented in various local plans over the years – will be realized.  Fossil fuel emissions will be reduced, resulting in improved air quality and decreased contribution to global climate change.  Reduced fuel consumption reduces the volume of fuel transported and the potential for fuel spills and contamination. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The total project cost for the final design/permitting phase of the hydroelectric project in Old Harbor is Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 4 of 26 7/1/2013 $1,150,000 of which $1,092,500 is requested in grant funds from AEA. The remaining $57,500 (5%) will be matched in cash by AVEC. 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 $1,092,500 2.7.2 Cash match to be provided $57,500 2.7.3 In-kind match to be provided $ 2.7.4 Other grant funds to be provided $ 2.7.5 Other grant applications not yet approved $ 2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $1,150,000 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. $8,155,000 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects. $0 2.7.9 Estimated Direct Financial Benefit (Savings) $455,415(first year) $14,210,641 (50 year life) 2.7.10 Other Public Benefit If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in Section 5 below. $ SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). In the electronic submittal, please submit 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. AVEC, as the electric utility serving Old Harbor, will provide overall project management and oversight. Steve Gilbert is manager of Project Development and Key Accounts for AVEC where he leads a team focused on lowering the cost of energy in rural Alaskan villages through improved power plant efficiency, wind and hydroelectric power, and interties between villages. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 5 of 26 7/1/2013 Previously, Mr. Gilbert worked at Chugach Electric for 17 years managing three power plants, including the 40MW Cooper Lake Hydroelectric facility. During the time Mr. Gilbert managed the Cooper Lake plant, it was re-licensed for 50 years. He served as lead electrical engineer for a 1 MW fuel cell and micro-turbine projects and wind energy project development. Mr. Gilbert is recognized as an industry leader on wind energy and has been active on a national level in operation and maintenance of wind power plants. He was Alaska’s Electrical Engineer of the Year in 2000 and for the 12 western states in 2001. He has been a regular lecturer at schools and universities on renewables, especially wind. He also worked with BP Wind in London assessing European wind prospects. Relevant to this project, Mr. Gilbert brings his vast experience relicensing and repowering the Cooper Lake Hydroelectric Project. To better evaluate investment opportunities for his employer, Mr. Gilbert recently completed his MBA. Meera Kohler is the President and Chief Executive Officer of AVEC. Ms. Kohler has more than 30 years of experience in the Alaska electric utility industry. She was appointed Manager of Administration and Finance at Cordova Electric Cooperative in 1983, General Manager of Naknek Electric Association in 1990, and General Manager of Municipal Light & Power in Anchorage in 1997. Since May 2000, Ms. Kohler has been the President and Chief Executive Officer of AVEC and in this position has ultimate grant and project responsibilities. 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Please fill out form provided below. You may add additional rows as needed. Milestones Tasks Start Date End Date 1. Project scoping and contractor solicitation completed N/A; contractor is already working on project 2. Permit applications completed N/A; permits will be submitted by December 2013 using other funding 3. Final environmental assessment and mitigation plans completed N/A; FERC license application will be submitted by October 2013 using other funding 4. Resolution of land use, right of way issues N/A; work towards acquiring ROW will be completed using other funding 5. Permitting, rights-of-way, site control completed N/A; permitting and ROW acquisition will be completed using other funding 6. Final system design completed See below for an overview of tasks associated with this milestone. Intake geotechnical fieldwork Geotechnical crew will complete work at the intake area of the project. Jul 2014 Sept 2014 Geotechnical report A report will be completed detailing the geotechnical conditions at the intake. Oct 2014 Dec 2014 65% design Jan 2015 Mar 2015 Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 6 of 26 7/1/2013 95% design Apr 2015 May 2015 100% design & specs Jun 2015 Aug 2015 7. Final cost estimate completed May 2015 Jul 2015 8. Updated economic and financial analyses completed Jan 2015 Apr 2015 9. Power or heat sale agreements in place N/A; no agreements will be necessary 10. Final business and operational plan completed The operational plan will be developed Apr 2015 Aug 2015 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. AVEC will use a project management strategy that it has used to successfully design and construct its wind turbines throughout rural Alaska. That strategy includes a team of AVEC staff and external consultants. AVEC staff members and their roles on this project include:  Meera Kohler, President and Chief Executive Officer, will act as Project Executive and will maintain ultimate programmatic and financial authority.  Steve Gilbert, Project Development Manager, will act as Program Manager and will lead the project management team consisting of AVEC staff, consultants, and contractors.  Debbie Bullock, Manager of Administrative Services, will provide support in accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines.  Bill Stamm, Manager of Engineering, leads AVEC’s Engineering Department which is responsible for in-house design of power plants, distribution lines, controls, and other AVEC facilities. Mr. Stamm’s unit will provide engineering design and supervision.  Mark Bryan, Manager of Operations, is a Certified Journeyman Electrician and supervises AVEC’s line operations, generation operation, and all field construction programs. Mr. Bryan’s unit will oversee operation of this project as part of the AVEC utility system.  Anna Sattler, Community Liaison, will communicate directly with Old Harbor residents to ensure the community is informed. Steve Gilbert will be responsible for the management of this project. He will be responsible for working with AVEC’s Community Liaison to involve the community in the project and gain site control. He will also coordinate and manage the following consultants while ensuring that their deliverables are on time and within budget: Geotechnical consultant. R&M Engineering will conduct a detailed geotechnical and natural hazards field study and report of areas along the intake access road and at the intake. R&M Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 7 of 26 7/1/2013 completed the geotechnical work along the power house road alignment, at the power house site, and along portions of the penstock and intake access road alignment. They understand how to get work done in Old Harbor. Engineering consultant. AVEC currently has Hatch Associates Consultants, Inc., under contract in support of this project. Hatch has completed all engineering work in support of the FERC licensing and environmental process and will continue to work on this project. Resumes are included under Tab A. 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. AVEC has systems in place to accomplish reporting requirements successfully. In 2012, AVEC successfully met reporting requirements for 56 state and federal grants. An independent financial audit and an independent auditor’s management letter completed for AVEC for FY 2012 did not identify any deficiencies in internal control over financial reporting that were considered to be material weaknesses. In addition, the letter stated that AVEC complied with specific loan and security instrument provisions. The project will be managed out of AVEC’s Project Development Department. For financial reporting, the Project Development Department’s accountant, supported by the Administrative Services Department, will prepare financial reports. The accountant will be responsible for ensuring that vendor invoices and internal labor charges are documented in accordance with AEA guidelines and are included with financial reports. AVEC has up-to-date systems in place for accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines. AVEC will require that monthly written progress reports be provided with each invoice submitted from contractors. The progress reports will include a summary of tasks completed, issues or problems experienced, upcoming tasks, and contractor’s needs from AVEC. Project progress reports will be collected, combined, and supplemented as necessary and forwarded as one package to the AEA project manager each quarter. Quarterly face-to-face meetings will occur between AVEC and AEA to discuss the status of all projects funded through the AEA Renewable Energy Fund program. Individual project meetings will be held, as required or requested by AEA. Meera Kohler, AVEC’s President and CEO, may be contacted as an alternative manager. 3.5 Project Risk Discuss potential problems and how you would address them. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design and Permitting AEA 2014-006 Application Page 8 of 26 7/2/2013 The only risks associated with this project involve delays in the schedule. FERC License Acquisition. AVEC will submit the FERC final license application in October 2013. After it is submitted, it will take 18-24 months to obtain the license. The Draft License Application was submitted in April 2013 and comments were received from FERC and other agencies. AVEC has worked with all agencies to address their issues and will deliver a quality application with all needed information in order for FERC to issue the license. Environmental Permitting. Sometimes environmental permitting can delay progress on hydroelectric projects. AVEC has hired Solstice Alaska Consulting, an environmental consultant familiar with permitting hydroelectric projects in Alaska. Solstice completed the license application and associated environmental report. Agencies are familiar with the project and have stated during agency meetings that they see few issues with the project. No environmental flows, which can sometimes hold up a project, have been mentioned or proposed by agencies. Geotechnical Logistics. Weather could delay the geotechnical consultants from getting into the intake site to conduct site work. A drill rig will need to be transported via helicopter into the intake site. R&M (the selected consultant) is familiar with Old Harbor weather conditions and will plan the work around weather conditions as much as possible. AVEC is a cooperative and follows the International Co-operative Alliance’s Seven Principles of Cooperatives. One of the most important of those principles is titled Democratic Member Control and refers to the men and women who serve as representatives being accountable to the membership. AVEC’s member communities, especially the community involved in a grant program such as the Renewable Energy Fund (REF), have expectations for projects regarding outcomes, schedule, budget, and quality of work. AVEC member communities and Board of Directors receive regular project status updates. When problems are reported, either formally through status reports or informally through other communications, member communities expect solutions. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design and Permitting AEA 2014-006 Application Page 9 of 26 7/2/2013 SECTION 4 – PROJECT DESCRIPTION AND TASKS  The level of information will vary according to phase(s) of the project you propose to undertake with grant funds.  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application. This project will utilize water taken from the East Fork of Mountain Creek. Stream gauging efforts by the State of Alaska Department of Natural Resources water division from July 1993 to May 1996 and by PolarConsult from June 1998 to August 2000 indicate that there is adequate water to meet Old Harbor's energy needs year-round. The maximum, mean, and minimum annual flows for the East Fork of Mountain Creek, based on the Mountain Creek Hydrology Report are approximately 100 cubic feet per second (cfs), 14.2 cfs, and 3 cfs, respectively (PolarConsult 2010). The project is currently sized to utilize a maximum of 11.8 cfs, but will initially use on 5.9 cfs. The project has a maximum gross head of about 760 feet and results in a 296 kW installed peak output. The initial installed nominal capacity is 262 kW. Estimated average annual generation for electric and heat energy is 2,018,924kWh (based on initial installation of 1 turbine and 296 peak output). Clearly this resource is able to provide a significant benefit to the community. Similar to other run-of-river projects in Alaska, the drawback with this resource is the lower power output during the winter and spring. However, given that Old Harbor's current peak load is about 100 kW and the minimum available power in the springtime is about 140 kW, this is currently not an issue. Once community demand warrants, an additional turbine will be installed at the powerhouse. The project will be constructed initially to accommodate the larger project but will not include the turbine. The project will then output 525 kW (nominal and peak) using 11.77 cfs. The project will acquire a FERC license for the larger project, so that relicensing will not be needed in the future. Other energy resources are not feasible for the following reasons:  A wind meteorological tower installed on Sitkalidak Island near Old Harbor to assess the wind resource found that wind will not be suitable for community power.  The installed cost of photovoltaic solar arrays will be higher per kW produced than the installed costs of wind.  Generating power from the hydrokinetic power is not yet an established technology or commercially available technology.  Biomass resources are limited by the lack of resources near the communities. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 10 of 26 7/1/2013 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The power plant in Old Harbor has the following diesel generators with the total capacity of 707 kW. (1) Cat 3306DI, 27 years old, rated at 235 kW (1) Cat 3306DI, 8 years old, rated at 235 kW (1) Detroit Series, 8 years old, rated at 236 kW In 2012, the aggregate generator efficiency was approximately14 kWh/gal. The transmission and distribution system consists primarily of overhead lines operating at 7200 volts. 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. Old Harbor uses diesel fuel for electrical power generation, heating oil for boiler (thermal) and home heating (with limited wood burning), and diesel and gasoline fuel for transportation needs. In FY 2012, 64,211 gallons were consumed to generate 898,952kWh. The anticipated benefit of this project is decreased usage of diesel fuel for electrical power generation. This will decrease generator operations and maintenance costs. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. According to a 2007-2011 American Community Survey (ACS) about 23% of Old Harbor residents live below the poverty line, with an average median household income of $50,179. Stabilizing the high cost of energy in the community will provide long-term, socio-economic benefits to village households. Currently, Old Harbor has a stand-alone electric power system with no intertie or connection beyond the village itself. The electricity consumption (sold) in Old Harbor in FY2012 was approximately 900,000 kWh. The load is highest during the winter months, when the community experiences heavy rains and extended periods of darkness. The addition of the hydroelectric power to the electric generation system will reduce the amount of diesel fuel used for power generation. This project will increase efficiencies and lower the costs of the energy system in Old Harbor. Emergency medical service is provided in the health clinic by a health aide. Medical problems and emergencies must be relayed by telephone or by some other means of communication to receive outside assistance. Tele-medicine is rapidly growing in rural Alaska as a means of regular and emergency care. Reliable telephone service and tele-medicine require reliable and affordable electric service. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 11 of 26 7/1/2013 The city is served by a piped circulation water system. Residents and buildings are equipped with full plumbing. Reliable and affordable electric service is required for the continuous operation of the water and wastewater systems. Like all of Alaska, Old Harbor is subject to long periods of winter darkness. Reliable electric service is essential for the operation of home lighting, streetlights, and security lighting. Outside lighting greatly improves the safety of village residents. Old Harbor practices its traditional Alutiiq culture and subsistence lifestyle. Refrigeration is essential for the extended storage of perishable food stuffs, and reliable electric service is essential for proper freezer storage of food. The construction of the proposed project will augment and improve the existing power generation system by incorporating a locally available renewable resource. 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 Renewable Energy Technology. The Old Harbor Hydroelectric Project is a basin diversion project. The project will initially collect 5.9 cfs and in the future collect up to 11.8 cfs of water year round from a tributary (East Fork Mountain Creek) of Barling Bay Creek and transport it across a basin boundary to Lagoon Creek Tributary just west of the City of Old Harbor. A small weir will impound water and divert water through the intake structure where leaves and sediment will be filtered out. The water will then enter the pipeline, which consists of high-density polyethylene (HDPE) pipe in the upper section. Steel pipe will be used in the downhill section to handle the higher pressures. The majority of the pipeline will have a diameter of 18 inches. The water will run through turbine in the powerhouse and out through a tailrace and into an existing pond (locally known as Swimming Pond). From Swimming Pond, the water will run through a new, manmade channel to Lagoon Creek Tributary. The Old Harbor Hydroelectric Project will have an initial dependable capacity of 140 kW and a peak capacity of 296 kW. The project will be constructed initially with one turbine at 50% installed capacity until demand warrants an additional turbine. The proposed project will reduce fuel used for power generation by at least 95%. The project will be operated automatically and primarily in standalone mode as the community’s primary source of electrical generation. The table below includes the general characteristics of the project. Additional project details are found in the Reconnaissance and Feasibility Study, which has been provided to AEA in the past and is available upon request. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 12 of 26 7/1/2013 Old Harbor Hydroelectric Project Summary General Data Initial Installed Capacity 262 kW (1 turbine) Initial Project Peak Capacity 296 kW, utilizing 5.9 cfs (1 turbine) Estimated dependable capacity 140 kW (winter/spring) Intake diversion/cut off weir/wall 4-6 ft high, 109 ft wide Penstock 10,077 ft long, 16-20 in diameter Intake Access Trail 11,506 ft long, 10 ft nominal width Powerhouse 30 ft by 35 ft Number of Generating Units (initial installed) 1 Type of Turbine 262 kW Pelton/impulse Tailrace to Swimming Pond and Lagoon Creek Tributary 1,788 ft long, 3-5 ft deep Powerhouse Access Road 5,637 ft long, 24 ft wide Overhead Power Line 6,893 ft long Anticipated capacity factor. The design annual capacity factor will be 88%. Anticipated annual generation. Estimated initial average annual generation for electricity and heat will be 2,018,799 kWh (based on installation of 1 turbine). The future estimated average annual generation will be 2,370,705 kWh (based on installation of 2 turbines) Basic integration concept. Once completed, this project will easily integrate into the diesel generation system. The hydroelectric project, with its output generally exceeding all needs, will be the prime generation asset and will be controlled by an electronic governing system allowing for rapid changes in the output. Delivery Method. A 6,893-foot long (1.5 mile), 7.2 kV three-phase overhead power line will extend from the powerhouse to the existing power distribution system in Old Harbor. 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed t o the project or how you intend to approach land ownership and access issues. The project area is owned by three entities and is approximately 3.5 miles long. It crosses through approximately 1.9 acres within the Kodiak National Wildlife Refuge managed by U.S. Fish and Wildlife Service, approximately 6.1 acres within the Kodiak National Wildlife Refuge that are subject to a conservation easement administered by the State of Alaska through the Exxon Valdez Oil Spill Trustee Council, approximately 3.26 acres within Old Harbor Native Corporation land that is subject to a conservation easement administered by the Kodiak National Wildlife Refuge, approximately 2.97 acres of other Old Harbor Corporation lands, and approximately 1.21 acres within City of Old Harbor lands. AVEC is currently working with USFWS to ensure that the FERC License Application’s environmental document will also meet the National Environmental Policy Act needs of the Service and can be used to issue project ROW within the Refuge and the conservation easement. AVEC will be required to request that the Exxon Valdez Oil Spill Trustee Council change the terms of the Kodiak National Wildlife Refuge’s conservation easement. AVEC changed the terms of the conservation easement previously and has informed the Trustee Council that an amendment to the terms will be needed. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 13 of 26 7/1/2013 Because the Corporation and City are project partners with AVEC, no problems with site control are expected with these entities. 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 Federal Energy Regulatory Commission (FERC) - Hydropower Project License: On June 29, 2012, FERC accepted AVEC’s application for a preliminary permit to study a potential hydroelectric project near Old Harbor. Following FERC’s Integrated Licensing Process (ILP), AVEC submitted a Draft License Application (DLA) to FERC in lieu of a Preliminary Licensing Proposal on April 26, 2013. AVEC received comments on the document from FERC, Alaska Department of Fish and Game, and U.S. Fish and Wildlife Service. AVEC is currently addressing comments on the DLA and plans to submit a license application to FERC by October 31, 2013. U.S. Fish and Wildlife Service (USFWS) - Right of Way Permit. Because portions of the Old Harbor Hydroelectric Project are within the Kodiak National Wildlife Refuge, and because the project is a utility system, AVEC must apply to the USFWS for right-of-way (ROW) under ANILCA Title XI, Transportation and Utility Systems. Before rights-of-way can be issued across Kodiak National Wildlife Refuge, it must be determined that the project is compatible with the purposes of the Refuge pursuant to Section 4(d)(2) of the National Wildlife Refuge System Administration Act. AVEC has been working closely with USFWS over the past few years to ensure that the project ROW will be issued. U.S. Army Corps of Engineers (USACE) - Wetlands Permit. The USACE provided a jurisdictional determination for the project area and wetlands impacts have been determined and documented in the DLA. After the geotechnical survey was completed in 2012, the design engineer determined that at some locations the project should be moved outside the wetland survey area. Another wetlands jurisdictional determination will be needed to determine impacts to wetlands in areas where the project falls outside the previously surveyed area. With existing funding, AVEC will complete wetlands delineation work in areas not previously mapped and will complete the wetlands permitting process. National Oceanic and Atmospheric Administration (NOAA) Fisheries- Essential Fish Habitat (EFH) Consultation. AVEC prepared an EFH Assessment and included it in the DLA’s Environmental Report. With existing funding, the EFH consultation process will be completed to meet the requirements of the Magnuson- Stevens Fishery Conservation and Management Act. State of Alaska, Department of Natural Resources (ADNR) Division of Mining, Land, and Water - Water Rights Permit. ADNR has attended all meetings and has been involved with the development of the environmental document for this project. The agency has started a file on the project and is expecting an application for water rights. This work will occur using existing funding. State of Alaska, Department of Environmental Conservation - Water Quality Certificate. Permitting work will also include Water Quality Certification, which will occur In conjunction with wetlands permitting work. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 14 of 26 7/1/2013 State of Alaska, Alaska Department of Fish and Game – Fish Habitat Permit. A Fish Habitat Permit will be sought using existing funding. Fisheries information gathered during the 2010 field effort will assist with this effort. ADF&G was involved with the design of the fisheries field effort and will be involved with the project design as AVEC moves forward. State of Alaska, Department of Transportation and Public Facilities (DOT&PF) - Utility and Road permits. DOT&PF approvals will be sought using conceptual designs and existing funding. Kodiak Island Borough Land Use Permit. The project will be located within the Kodiak Island Borough and as such is required to comply with land use regulations. Using existing funding, AVEC will apply for and obtain a Conditional Use permit. 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 As detailed below, all environmental issues have been addressed in the environmental document in the DLA. Threatened or endangered species. The FERC designated AVEC as a non-federal representative for the purposes of conducting Endangered Species Act (ESA) consultation on August 16, 2011. Consultation letters were sent to USFWS and NOAA Fisheries on September 14, 2011. On January 20, 2011, the USFWS concurred with the finding of not likely to adversely affect ESA species and critical habitat. On February 27, 2013 NOAA Fisheries stated that with an action agency finding of “no effect” NOAA Fisheries concurrence is not required because there are no species under NOAA Fisheries jurisdiction in the project area. Habitat issues. The project would permanently impact approximately 15 acres and temporarily impact 47 acres of native habitat that is used by the wildlife species on Kodiak Island. Due to the limited impacts associated with the project and the abundance of undisturbed similar habitat in the vicinity of the project, impacts to terrestrial mammal habitat are considered minimal. Additional information on habitat impacts is documented in the environmental document in the DLA. Wetlands and other protected areas. Most of the project components would be located within uplands to avoid wetlands. In areas where wetlands are unavoidable, project component footprints have been minimized to reduce impacts. Temporary impacts will result from construction activities occurring in wetlands, including equipment operation and the temporary storage of stockpile material. Permanent impacts will be due to the filling or dredging of wetlands to place project components. Out of the Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 15 of 26 7/1/2013 approximately 10.4 acres of wetlands mapped in the project area, approximately 4.6 acres will be temporarily impacted and approximately 1.3 acres of the wetlands will be permanently filled. Impacts will occur in all types of wetlands mapped, with most of the permanent impacts occurring from the placement of the powerhouse and workpad. A wetlands permit will be acquired for the project. Archaeological and historical resources. On August 18 and 19, 2010, Northern Land Use Research, Inc., archeologists conducted a survey of the Old Harbor Hydroelectric Project area and did not document any cultural resources within the project area. FERC designated AVEC as a non-federal representative for the purposes of conducting Section 106 Consultation under the National Historic Preservation Act on September 7, 2011. AVEC found that the Old Harbor Hydroelectric Project would have no effect on cultural or historic resources and sent a findings letter to the State Historic Preservation Officer (SHPO) on September 14, 2011. The SHPO concurred with this finding, stating “No Historic Properties Affected” on September 21, 2011 Land development constraints. As discussed throughout this application, an easement would be needed within the Kodiak National Wildlife Refuge, Old Harbor Native Corporation land, and City of Old Harbor land. Because AVEC continues to involve the USFWS in project planning and because the Corporation and City are project partners, site control should not be an issue. AVEC would be required to request that the Exxon Valdez Oil Spill Trustee Council change the terms of the Kodiak National Wildlife Refuge and Old Harbor Native Corporation’s conservation easement. AVEC changed the terms of the conservation easement previously and has informed the Trustee Council that an amendment to the terms will be needed. Telecommunications Interference/Aviation Considerations. Telecommunication and FAA airspace issues are not expected with this project. Visual, aesthetics impacts. Because this project is outside of Old Harbor and because it is supported by the community, visual and aesthetic resources are not expected to be an issue. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:  Total anticipated project cost, and cost for this phase  Requested grant funding  Applicant matching funds – loans, capital contributions, in-kind  Identification of other funding sources  Projected capital cost of proposed renewable energy system  Projected development cost of proposed renewable energy system Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 16 of 26 7/1/2013 Total anticipated project cost, and cost for this phase/requested grant funding/matching funds. This application is for the final design/permitting of a hydroelectric project in Old Harbor. The design project will cost $1,150,000 to complete. (Permitting is anticipated to be completed with existing funding.) AVEC is requesting $1,092,500 from AEA through the REF grant program, and AVEC will provide $57,500 as a cash match for this phase. Identification of other funding sources. It is possible that the funding for this work will come from a combination of AEA’s Renewable Energy Fund program, USDA Rural Utility Service Program, another grant program, or direct appropriation from the State or Federal government. Projected capital cost of proposed renewable energy system/projected development cost of proposed renewable energy system. AVEC expects the final construction of the project will cost $8,155,000. AVEC will provide a 10% cash match for the construction 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.) Annual operation and maintenance cost for the Old Harbor Hydroelectric Project, including the diesel related costs, will be approximately $266,974. The hydro-production related costs will be $95,703. Details are found below. O&M with Hydro (diesel plus hydro) Fixed O&M ($0.151/kWh estimated) $135,583 Diesel production related O&M $35,688 Hydro production related O&M $95,703 Total $266,974 Operation and maintenance costs will be funded through power sales to the community. 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 Because AVEC, the local utility, will own and operate the project there will not be a requirement for a power purchase agreement. AVEC may be required to obtain bonds or other financing to build the project. The savings in fuel costs from the displaced diesel operations will fund the necessary financing. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 17 of 26 7/1/2013 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 296 kW peak output; capacity based) 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 Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other 3 ii. Rated capacity of generators/boilers/other (kW rating) 235, 235, 236 iii. Generator/boilers/other type CAT 3306D1, CAT 3306D1, DD560K4 1200 iv. Age of generators/boilers/other Commission dates: 7/1986, 6/2005, 8/2005 v. Efficiency of generators/boilers/other 14 kWh/gal AVEC 2012 Y-T-D average 13.92 b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $216,444 ($0.26kWH sold) labor and non-labor (FY2012 PCE Report) ii. Annual O&M cost for non-labor 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] 898,952 kWh ii. Fuel usage Diesel [gal] 64,211 gal Other iii. Peak Load 147 kW iv. Average Load 103 kW v. Minimum Load NA vi. Efficiency 14 kWh/gal vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 108,334 gals ii. Electricity [kWh] iii. Propane [gal or MMBtu] 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 18 of 26 7/1/2013 iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] 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] 296 kW (peak output) b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 834,656 kWh ii. Heat [MMBtu] 1,184,143 kWh 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 $8,155,000 b) Development cost $1,150,000 c) Annual O&M cost of new system $95,703 d) Annual fuel cost Project Benefits a) Amount of fuel displaced for i. Electricity 59,618 gal/year ii. Heat 33,770 gal/year iii. Transportation b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits Power Purchase/Sales Price a) Price for power purchase/sale N/A Project Analysis Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 19 of 26 7/1/2013 a) Basic Economic Analysis Project benefit/cost ratio 1.96 Payback (years) 20 4.4.5 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the propos ed benefit area. If the is for a PCE eligible utility please discuss what the expected impact would be for both pre and post PCE. Old Harbor is a PCE eligible community. Old Harbor consumers received $195,521 in FY12 in PCE credits for eligible kWh sales to residences and community facilities. About 42% of sales in Old Harbor were not eligible for PCE and, as a result, those consumers will receive the entire benefit of reduced power costs through their electric rates. Power sales that are eligible for PCE will see 5% of the benefit of reduced electric costs in their electric rates, with the other 95% accruing to the state of Alaska through reduced PCE credits to end users. 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 primary benefit of this project will be to prepare the final design and obtain permits for a hydroelectric facility in Old Harbor. Once this work is completed, AVEC will seek and acquire funding for construction of the “shovel-ready” project. Potential annual fuel displacement. The project will displace an estimated 95% of the fuel consumed for power generation. At ISER’s projected fuel costs, the project will result in savings of about $455,415 during its first year of operation (2017). Over the life of the project, 50 years, this savings has a present value of $14.2 million using ISER’s model. Anticipated annual revenue/Potential additional annual incentives/Potential additional annual revenue streams. Tax credits are not expected to be beneficial to the project due to AVEC’s status as a non-profit entity. Nonetheless, in addition to saving the direct cost of fuel, AVEC could sell green tags from the project. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 20 of 26 7/1/2013 Non-economic public benefits Information/Data Benefits. Funding acquired through this grant will be used to obtain geotechnical and wetland information within Kodiak National Wildlife Refuge and conservation areas. Collection of field information will benefit the USFWS and add to the overall knowledge of the Refuge. In addition, the collection of information will meet the USFWS’ Goal 1 of the Kodiak National Wildlife Refuge Conservation Plan—Increase knowledge of fish and wildlife populations, their habitats, and their interrelationships. Subsistence Benefits. Another goal of the USFWS Conservation Plan is to “Provide the opportunity for local residents to continue their subsistence uses on the Refuge, consistent with the subsistence priority and with other Refuge purposes.” A new road will be established to the powerhouse providing easier access to the Refuge. (At USFWS’s request, the trail to the intake will be closed to public ATV traffic.) Recreational and Environmental Benefits. Currently there is an ATV trail to the planned powerhouse area. The existing ATV trail in the project corridor is heavily rutted, braids across wetlands, and has two in-stream crossings of Lagoon Creek. The project will improve habitat along the existing ATV trail to Swimming Pond as traffic will flow to the new powerhouse access road. The new road will be in better condition, and easier to use, than the existing trail. The good condition of the powerhouse access road will encourage users to stay on the road. Allowing ATV traffic to utilize the new access road to the powerhouse will eliminate these in-stream crossings and prevent further braiding of the trail that is damaging to wetland complexes associated with the Lagoon Creek drainage. Socioeconomic Benefits. The Old Harbor Hydroelectric Project will provide multiple benefits to the socio-economic environment of Old Harbor by employing local residents and providing affordable power to local consumers and industrial users. In the short-term, the project will have a positive economic impact due to the availability of jobs during the construction of the project, including construction and bear-guard positions. There will be additional economic opportunities such as ATV and lodging rentals and the purchase of local goods by construction workers. In the long-term the project will improve socioeconomic opportunities by providing power that is stably priced. Stabilized power costs will allow for improved operation of existing public services. For example, existing facilities could be open for longer, and facilities that do not currently have power, like the boat harbor and the airport, could be connected to the grid. New business could be established. For example, the Old Harbor Native Corporation has stated that they will build and operate a fish processing plant once the hydroelectric project is constructed. Operation of this project will create the power necessary to operate the plant. Being able to process fish locally will provide jobs and increase the amount of fishing revenue that stays in Old Harbor. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 21 of 26 7/1/2013 Community Goals Realized. The Old Harbor Hydroelectric Project will meet the goals of existing community comprehensive plans. The Kodiak Island Borough Comprehensive Plan Update lists the need for hydroelectric power as one of four priority issues facing Old Harbor. Developing a hydroelectric facility is one of the policies under Old Harbor’s Public Facilities, Health, and Safety goal. The City of Old Harbor Community Plan (City of Old Harbor, 2006) also lists hydroelectric power as a community priority. This project will stabilize energy cost and allow the City of Old Harbor, the Native Village of Old Harbor, and the Old Harbor Village Corporation to afford important community infrastructure projects listed in the plans, including a new ferry dock and a new community multipurpose building. 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. This project will not provide power to any large private sector businesses. By reducing the cost of power production, small businesses and public facilities in Old Harbor, including the lodges, boat harbor, and city, tribe, and corporation office buildings (not eligible for PCE) will see a cost savings which may be passed along to residents in the form of lower product or services prices. Renewable energy resource availability (kWh per month) n/a Estimated sales (kWh) n/a Revenue for displacing diesel generation for use at privet sector businesses ($) n/a Estimated sales (kWh) n/a Revenue for displacing diesel generation for use by the Alaskan public ($) n/a SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum:  Proposed business structure(s) and concepts that may be considered.  How you propose to finance the maintenance and operations for the life of the project  Identification of operational issues that could arise.  A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation.  Commitment to reporting the savings and benefits AVEC has the capacity and experience to administer this grant and manage this project, if funded. As a local utility that has been in operation since 1968, AVEC is completely able to finance, operate, and maintain this project for its design life. AVEC has operated other renewable projects throughout the state and is very familiar with planning, constructing, operating, and maintaining alternative systems. Business plan structures and concepts which may be considered: The hydroelectric power will be incorporated into AVEC’s power plant operation. Local plant operators provide daily servicing. AVEC technicians provide periodic preventative or corrective maintenance and are supported by AVEC Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 22 of 26 7/1/2013 headquarters staff, purchasing, and warehousing. How O&M will be financed for the life of the project: The costs of operations and maintenance will be funded through ongoing energy sales to the villages. Operational issues which could arise: AVEC does not envision any operational issues. No environmental flows have been proposed by regulatory agencies, which will allow for adequate operational flows year round. The intake area will be assessable by ATV throughout the year via small pickup truck or ATV and any minor issues at the intake could be handled locally. Operating costs: Annual operation and maintenance cost for the Old Harbor Hydroelectric Project will be approximately $95,703 (hydro production only) with annual operation and maintenance costs for all power production at $266,974. See details in Section 4.4.2. Commitment to reporting the savings and benefits: AVEC is fully committed to sharing the savings and benefits accrued from this project information with its member communities and to sharing information regarding savings and benefits with AEA. 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. With $225,000 of grant funding awarded from the legislature through the first round of the Renewable Energy Fund Program and $25,000 AVEC match, AVEC initiated the FERC hydroelectric licensing process. A Preliminary Application Document and Study Plan were prepared and wetland, fisheries, cultural resources, and eagle nest field work was conducted. A draft and final study report were prepared. In addition reconnaissance and feasibility study, including a hydrology study, was prepared. Regulatory agencies and FERC were involved throughout the process. AVEC was awarded $237,500 from the legislature during the fourth round of the Renewable Energy Fund Program. These funds, along with a $12,500 AVEC match, were used to complete a geotechnical assessment of the powerhouse site and powerhouse access road and powerline alignment areas. The funds were also used to prepare the DLA’s Exhibit G (Survey Maps) and the first drafts of the DLA’s Exhibit A (Project Description) and Exhibit F (Design Drawings). Funds from this grant have been exhausted. The City of Old Harbor Received a $250,000 Community Development Block Grant to assist AVEC with completing the FERC License Application. Funds acquired through this grant along with a $12,500 AVEC match were used to complete the DLA including the Exhibit E (Environmental Report) and the final draft of the Exhibit F (Design Drawings). Funds were used to address agency comments on the DLA and to prepare the Final License Application. It is expected that the funds remaining in this grant (approximately $100,000 as of August 2013) will be used to complete the FERC licensing process and permitting process and begin the design process. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 23 of 26 7/1/2013 Because AVEC contractors are currently working on this project, there will be no obstacles moving forward once grant funds are secured. 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. The community of Old Harbor supports this project and is interested in moving forward with this important project. Letters of support have been received by all governing entities. Please see Tab B. 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. AVEC plans to complete final design and permitting for a new hydroelectric facility in Old Harbor. It will cost $1,150,000 to complete the work. AVEC is requesting $1,092,500 from the REF and will provide a cash match of $57,500, if awarded. Renewable Energy Fund Round VII Grant Application - Standard Form Old Harbor Hydroelectric Project  Final Design/Permitting AEA 2014-006 Grant Application Page 24 of 26 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 1. Project scoping and contractor solicitation completed N/A $ $ $ 0 2. Permit applications completed N/A $ $ $ 0 3. Final environmental assessment and mitigation plans completed N/A $ $ $ 0 4. Resolution of land use, right of way issues N/A $ $ $ 0 5. Permitting, rights-of- way, site control completed N/A $ $ $ 0 6. Final system design completed Intake geotech fieldwork Sept 2014 $ 427,500 $ 22,500 $ 450,000 Geotech report Oct 2014 $ 47,500 $ 2,500 $ 50,000 65% design Feb 2015 $ 308,750 $ 16,250 $ 325,000 95% design Jun 2015 $ 154,375 $8,125 $ 162,500 100% design and specs Aug 2015 $ 95,000 $ 5,000 $ 100,000 7. Final cost estimate completed Aug 2015 $59,375 $ 3,125 $ 62,500 8. Updated economic and financial analyses completed N/A $ $ $ 9. Power or heat sale agreements in place N/A $ $ $ TOTALS $1,092,500 $ 57,500 $1,150,000 Budget Categories: Direct Labor & Benefits $ 95,000 $ 5,000 $ 100,000 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ 997,500 $ 52,500 $ 1,050,000 Construction Services $ $ $ Other $ $ $ TOTALS $ 1,092,500 $ 57,500 $ 1,150,000 Tab A Resumes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Tab B Letters of Support Tab C Heat Project Information No information provided in this section. Not applicable to this project. Tab D Authority Tab E Electronic Version of Application Tab F Certification Tab G Additional Material Draft license application submitted by the Alaska Energy Authority to the Federal Energy Regulatory Commission on April 26, 2013. This document is available online (docket # P-13272) or on request.