HomeMy WebLinkAboutRenewable Energy Fund Round VII 9-24-2013Renewable Energy Fund Round VII
Grant Application -Standard Form
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round VII of the Renewable Energy Fund . A separate application form is available for
projects with a primary purpose of producing heat (see RFA section 1.5). This is the standard
form for all other projects , including projects that will produce heat and electricity . An electronic
version of the Request for Applications (RFA) and both application forms is available online at:
http://www.akenergyauthority.org/REFund7 .html .
• If you need technical assistance filling out this application , please contact Shawn Calfa,
the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at
scalfa@aidea.org .
• If you are applying for grants for more than one project , provide separate application
forms for each project.
• Multiple phases for the same project may be submitted as one application.
• If you are applying for grant funding for more than one phase of a project , provide
milestones and grant budget for each phase of the project.
• In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3
ACC 107.605(1).
• If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are completed and funding for an advanced phase is warranted.
• If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
• In the sections below , please enter responses in the spaces provided, often under the
section heading . You may add additional rows or space to the form to provide sufficient
space for the information, or attach additional sheets if needed.
REMINDER:
• Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply .
• All applications received will be posted on the Authority web site after final
recommendations are made to the legislature .
• In accordance with 3 AAC 107 .630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application .
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
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Renewable Energy Fund Round VII
Grant Application -Standard Form
SECTION 1 -APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Native Village of Chenega
Type of Entity: ANSCA village Fiscal Year End: December 31
Tax ID # 92-0074435 Tax Status: __ For-profit __ Non-profit ...JL..._Government ( check one)
Date of last financial statement audit: 9/30/2013 (expected)
Mailing Address Physical Address
PO Box 8079 613 Main Street
Chenega Bay , AK 99574-8079 Chenega Bay, AK 99574-8079
Telephone Fax Email
907-573-5132 907-569-6939 Brian.oillars@cheneaafuture.com
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
Name Title
Brian Pillars Operations Manager
Mailing Address
PO Box 8079
Chenega Bay, AK 99574-8079
Telephone Fax Email
907-569-5688 907 -569-6939 Brian.pillars@chenegafuture.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
An independent power producer in accordance with 3 AAC 107 .695 (a) (1), or
A local government, or
X 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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Grant Application -Standard Form
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 ! to I word title for your project). Type in space below.
Chenega Bay Hydroelectric Construction
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 .
Chenega Bay , A laska .
Latitude : 60.0657 Longitude: -148 .0104
2.2.2 Community benefiting-Name(s) of the community or communities that will be the
beneficiaries of the project.
Chenega Bay, Alaska
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 X Construction and Commissioning
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Grant Application -Standard Form
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
The Native Village of Chenega (aka. Chenega Bay) proposes to construct a run-of-the-river
hydroelectric project on Anderson Creek. The planned 64 kW capacity project will offset power
currently generated by burning diesel. The non-jurisdictional hydro will offset up to 10,406
gallons of diesel annually which translates into $56 ,600 in annual savings . Engineering design is
95% complete and permit applications to the appropriate agencies have been submitted .
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 hydroelectric plant is projected to significantly reduce the annual cost to run the electric
utility in the community . This translates to lower rates for both consumers and the state;
consumers will pay less if they exceed the PCE and the state will save by subsidizing PCE at a
lower cost per kWh.
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 project is anticipated cost approximately $1,650,000 . The tribe has applied for USDA
funding for rural communities with extremely high energy costs. As an unincorporated
community, Chenega Bay lacks cash resources but will continue to seek other grant funding .
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 $1,400,000
2.7.2 Cash match to be provided $
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 $250,000
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $1,650,000
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 $ 1,650,000
4.4.4, including estimates through construction .
2.7.8 Additional Performance Monitoring Equipment not covered $0
by the project but required for the Grant Only applicable to
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Grant Application -Standard Form
construction phase projects.
2.7.9 Estimated Direct Financial Benefit (Savings) $ 56,600 annually
$1,780,000 lifetime
2. 7.10 Other Public Benefit If you can calculate the benefit in terms $ 9,000 annual heat value,
of dollars please provide that number here and explain how you $280,000 lifetime
calculated that number in Section 5 below.
SECTION 3-PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a
resume and references for the manager(s). In the electronic submittal, please submit resumes
as separate PDFs if the applicant would like those excluded from the web posting of this
application . If the applicant does not have a project manager indicate how you intend to solicit
project management support. If the applicant expects project management assistance from
AEA or another government entity, state that in this section.
The tribe does not intend to directly manage this project ; such a project is beyond the tribe 's
management capacity and expertise . The tribe is allocating $150,000 for project management
combined with the 95% to 100% final engineering .
Please fill out form provided below. You may add additional rows as needed .
Start End
Milestones Tasks Date Date
Grant Award Sign grant agreement 6/14 6/14
RFP Create RFP, issue RFP, select contractor 7/14 8/14
Contract Negotiations Work with AEA to negotiate contract details 8/14 9/14
Final Design Complete 100% final design and engineering 9/14 4/15
Procurement Procure construction materials 9/14 4/15
Construction Construct hydro plant and integrate into
system 6/15 8/15
Close out Punch list and AEA sign off and close out 8/15 12/15
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Grant Application -Standard Form
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 .
The tribe does not have any existing personnel , contractors, equipment , and services dedicated
to the project. The selection process for choosing a project management firm and the actual
construction contractor would be based on an RFP that follows both tribal and state standards
for service procurement. Price would be a factor, of course, but not the sole basis when
consulting with AEA to award the contract.
The tribe does use North Pacific Rim Housing Authority , the regional housing agency, to handle
all of its bookkeeping and accounting, so any costs incurred by the tribe on the project would be
reviewed and handled by their professional accountants. ·
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 .
The tribe is seeking project management ass istance from an outside firm , not yet determined ,
who would be in contact with AEA and providing daily , monthly and quarterly reports as
necessary.
3.5 Project Risk
Discuss potential problems and how you would address them .
Issues w ith p ermitting and any co ndition s that wo uld res tri ct flows are th e bigges t threat to the proj ec t.
Thi s can be addressed by makin g th e full a mount of f unding co nditional on obtain ing permits that allow
f or an economical proj ect. Permit applicatio n s have bee n s ubmitted, but n ot all are appro ved
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Grant Application -Standard Form
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.
Hydroelectric power is economical in Chenega Bay, provided flow requirements do not limit the
output. A conservative figure places the output at 170,000 kWh annually, which is over 'Y2 of the
community 's current electric demand. There is a more detailed breakdown in the attached
business plan and designs .
Chenega Bay has no other options for alternative energy. The wind regime is poor and unreliable,
tidal power remains a concept rather than a practice, and the climate of Prince William Sound
does not lend itself to solar power. The status quo is simply not sustainable : burning diesel fuel to
generate electricity is neither practical nor affordable in the long run . Hydro 's history in this state
dates back over 100 years and hydro is successfully used by a hatchery across the bay .
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 tribe currently uses three diesel generators to provide electricity , a 45 -kW and 2 , 65kW
generators . Their annual fuel consumpt ion is nearly 30 ,000 gallons . Their average efficiency is
nearly 12kWh/gallon that figure will improve when high -voltage lines are replaced in spring 2014 .
All three units have been in use since 2009 and vary in their usage according to the load, but
generally , a single generator is running at any given time .
4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources . Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
The diesel generators are the sole source of electricity for the community . The addition of
hydroelectric would have a positive impact on the generators . Hydro would enable to generators
to go off-line some of time , thus reducing the wear and tear on generators and extending their life
expectancy. Also , fuel shipping and handling will reduce significantly resulting in savings to the
utilit .
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Grant Application -Standard Form
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Existing electric sales are approximately 275,000 kWh annually for the entire community with total
revenues of $145,000 in 2012 . It is unknown what impact any change on the electric rate would
have for consumption at PCE and non-PCE rates. The 2012 ISER study on PCE indicated that
most communities with standalone electric util ities did not report households exceeding the 500
kWh threshold; there is no reason to assume that lower PCE rate in Chenega Bay would increase
consumption especially if the rate were still significantly above Rail belt rates . However, if the rate
were at or lower than the BTU cost when using diesel for home heating purposes, the potential
exists for electric heat in households in the wintertime if hydro output can match the demand.
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
A 64 kW run -of-the-river hyrdroelectric plant is the optimal size project in Chenega Bay that can
produce 170, OOOkWh annually (31% capacity factor) with roughly 123,000 kWh in sales to
consumers . As the existing generators will be on stand-by or functioning as supplemental sources
of electricity, there will be switching gear installed to integrate the resource into the existing grid .
There are few barriers anticipated ; fully integrating the hydro's switchgear may take time, but this
is common when integrating different energy sources on a single grid .
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the project
or how you intend to approach land ownership and access issues .
The project would involve modifying an existing dam owned by the tribe and the penstock would
follow an existing raw water line held in trust by the state through the 14c program . The power
plant would be located on corporation-owned land where the water plant currently sits. Both the
state and Chenega Coroporation have been extremely cooperative in the past when community
projects have required the use of 14c or corporate land . We expect this to continue .
I 4.3.3 Permits
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Grant Application -Standard Form
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 business plan covers the permitting situation . The plan is based on a flow reservation that
meets the requirements of the Division of Habitat, who will most likely be the most problematic .
FERC will not have any input on this project, thus eliminating another barrier . Permitting will likely
take less than a year upon grant award .
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
• Threatened or endangered species
• Habitat issues
• Wetlands and other protected areas
• Archaeological and historical resources
• Land development constraints
• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and discuss other potential barriers
• Threatened or endangered species-n/a
• Habitat issues -this is addressed in the business plan
• Wetlands and other protected areas -n/a
• Archaeological and historical resources -n/a
• Land development constraints -n/a
• Telecommunications interference-n/a
• Aviation considerations-n/a
• Visual, aesthetics impacts-n/a
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
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Grant Application -Standard Form
• Projected capital cost of proposed renewable energy system
• Pro·ected develo ment cost of ro osed renewable ener s stem
The tribe expects the project to cost approximately $1,650,000 to move from the current 95%
design to 100% design and then on to the construction phases up through commissioning. An
application with USDA for communities with extremely high energy costs is pending . The tribe is
currently seeking other funds as it cannot offer any significant in-kind or cash match due to lack of
land ownership and unincorporated status , respectively .
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 projected O&M costs with hydro is expected to be equal to the existing O&M costs saved as
a result of reduced generator usage and improved water utility operations . Current sales of
$145 ,000 per year enable the tr ibe to meet the O&M cost at the current rate or even a reduced
rate . The tribe has a pre-pay metering system fo r electricity sales and a 100% collection rate .
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 tribe has sales of roughly 275 ,000 kWh annually , split roughly between consumer PCE-rates
and commercial rates , with a small portion for community facilities. The business plan assumes
full grant funding with project savings primarily offset by reduced PCE support . This results in a
rate of return of 1.2 to the State, significantly higher than many other alternative energy projects .
Lowering the rate , or keeping it the same if fuel prices increase, would lower the rate of return, but
it 's worth exploring various prices that could provide relief to rate payers -and the state 's PCE
fund-while still maintaining a positive return to the state or other funders .
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 th e form provi ded belo w.
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis .
Annual average resource availability . 172 ,520 kWh (31% capacity factor)
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