HomeMy WebLinkAboutR7 - Cosmos HillsRenewable Energy Fund Round VII
Grant Application-Cosmos Hills
Hydro Design & Permitting
SECTION 1 -APPLICANT INFORMATION
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Name (Name of utility, IPP, or government entity submitting proposal)
Alaska Village Electric Cooperative (AVEC)
Type of Entity: Not-for-profit corporation Fiscal Year End: December 31
Tax ID # 92-0035763 Tax Status: __ For-profit ....ll.._Non-profit _Government ( check one)
Date of last financial statement audit:
Mailing Address Physical Address
4831 Eagle Street Same
Anchorage, AK 99503
Telephone I Fax Email
(907) 565-5358 (907) 561-2388 sgilbert@avec.org
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
Name Title
Steve Gilbert Manager, Projects Development and Key Accounts
Mailing Address
4831 Eagle Street
Anchorage, AK 99503
Telephone I Fax Email
(907) 565-5357 (907) 561-2388 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 (wh ich 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-T em p_late . p_df. (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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Renewable Energy Fund Round V II
G rant Application -Cosmos H ill s
Hydro Design & Perm itting
SECTION 2 -PROJECT SUMMARY
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This section is intended to be no more than a 2-3 page overview of your project.
2.1 Project Title-(Provide a ~to ?... word title for your project). Type in spa ce be lo w.
Cosmos Hills Hydroelectric Design & Permitting
2.2 Project Location -
Include the physical location of your project and name(s) of the community or communities tha t will
benefit from your project in the subsections below.
2.2.1 Location of Project-Latitude and longitude, street address, or com munity na me.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project's loca tion on the map
and then right c licking with the mouse and selecting What is here? The coordinates will be displaye d in the Google
search window above the map in a format as follows : 61 .195676.-149.898663. If you wo uld like assi stan ce o btaining
this information please c ontact AEA at 907-771-3031 .
The location of the project is on the Kogoluktuk River .
The communities impacted by this project are Ambler, Shungnak, and Kobuk, located in No rthwest
Alaska. Ambler is located on the north bank of the Kobuk River, near the confluence of t h e Amble r and
the Kobuk Rivers. It lies 30 miles northwest of Kobuk, and 30 miles downriver from Shungnak . Shungna k
is located on the west bank of t he Kobuk River. Kobuk is loca t ed on the east bank of the Ko buk River,
abo ut 7 miles northeast of Shungnak.
Lo cation coordinates are given in the table below.
Publi c Land Su rvey Sy st em (PL SS ) Inf o Geogr aphical Coo r d i na t es
Lo ca t ion Sectio n Town ship Ran ge M er id ian La t itude longitude
Kobuk 3 17 N 9E Kate el River 66"55' N 156"53' w
Sh ungnak 9 17 N BE Kateel River 66"53' N 157"08' w
Ambl er 31 20N 5 E Katee l River 67"05' N 157"51' w
Kogoluktuk River 8 18 N 10E Kateel River 66"58'20" N 156°43'19" w (at I ntake)
Kogoluktuk Ri ver 17 18 N 10E Kat ee l River 66"57'52" N 156°43 '4 8" w (at Powe rhouse)
2 .2.2 Community benefiting -Name(s) of the community or communities th at w ill be th e
benefic iaries of the project.
The Northwest Arctic, Upper Kobuk communities of Ambler, Shungnak, and Kobuk Ala ska are the
communities benefitting from this project.
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Renewable Energy Fund Round VII
Grant Application-Cosmos Hills
Hydro Design & Permitting
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3 .1 Renewable Resource Type
W ind
X Hydro, Includ ing Run of River
Geothermal , Excluding Heat Pu mps
Solar Photovoltaic
Other (Describe)
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Biomass or Biofuels (exclu ding heat-only)
Hydrokinetic
Transm ission of Renewable Energy
Storage of Renewable
Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
Reconnaissance X Final Des ign and Perm itting
Feasibility and Conceptual Des ign Construction and Commissioning
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
After careful consideration of the potential hydropower sources in the Cosmos Hills, as documented in
the Feasibility Study and Conceptual Design Report, AVEC has chosen to move forward with design and
permitting for a hydroelectric project on the Kogoluktuk River. The Kogol uktuk River project would be a
run -of-river project with a small diversion dam and intake, a long above-ground penstock pipeline, a
small Kaplan turbine and powerhouse, and a tailrace back to the river. The project would also include an
access road, a transformer, and a high -voltage transmission line. At this location, the upstream basin
catchment area is approximately 424 square miles.
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 villages of Kobuk, Shungnak and Ambler do not have access to the electrical grid, so all power must
be produced locally. Diesel fuel is the primary source of heat and power generation for these
communities. Because of the difficult logistics, including delivery by air, and the need for on -site fuel
storage, fuel costs are extremely high. This region ha s so me of the highest prices in the nation for
electricity. Diesel prices vary considerably depending on world market, delivery method and availability.
The inclusion of hydropower for Kobuk, Shungnak and Ambler will stabilize the cost of energy, buffering
residen ces from the impact of ma rket forces which drive up the cost of diesel.
The Kobuk River has changed course near Shungnak, and all 2013 fuel for power generation and heating
was delivered by air ca rgo to Shungnak, Kobuk , and Ambler. Air transport is the only alternative for fuel
delivery when barges do not have access.
Since les s fuel will be required to serve the communities, a hydro project will have a positive
environmental benefit by reducing potential for fuel spills during transport, storage, and use. While all
precautions are observed during delivery, there is always some chance of an incident and the
consequences can be severe.
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Renewable Energy Fund Round VII
Grant Application-Cosmos Hills
Hydro Design & Permitting
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The hydro resource on the Kogoluktuk River is expected to provide power in excess of that needed for
the villages' electrical needs. Using additional hydropower to heat local community facilities, such as
water treatment plants, government buildings, and clinics will reduce heating costs, similar to wind to
heat projects currently funded through the renewable energy fund. Reductions in heating costs for
water and sewer utilities would be passed on to residents in the form of lower utility bills.
Reduced power rates for commercial customers who do not benefit from Power Cost Equalization (PCE)
subsidies, could attract business to the region, providing a regional economic boost, as well as new job
opportunities for re sidents.
As costs for electricity are reduced in the Upper Kobuk, the state will be able to decrease their
expenditures from the PCE endowment, extending the life of that program and its benefit for rural
Alaskans.
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.
We are requesting $2,922,000 from AEA for co ntractual work as detailed in the table in Section 9.
AVEC plans to provide a 2.5 percent, or $75,000, match to the grant funds sought. This will be a cash
contribution used to pay for contractual services.
NANA Regional Corporation also is committed to providing a 2.5 percent, or $75,000, match . Their
contribution will be in coordination with the three villages, keeping community and regional leaders and
residents informed about the project, organizing and holding community meetings, promoting the
project within the region and at the State level and assisting with the transfer of right of way and
easements for the project.
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 $2,922,000
2.7.2 Cash match to be provided $75,000
2.7.3 In-kind match to be provided $75,000
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) $3,072,000
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 $38,660,000
4. 4. 4, including estimates through construction.
2.7.8 Additional Performance Monitoring Equipment not covered NA
by the project but required for the Grant Only applicable to
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Renewable Energy Fund Round VII
Grant Application -Cosmos Hills
Hydro Design & Permitting
construction phase projects.
2.7.9 Estimated Direct Financial Benefit (Savings)
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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
$44,605,623
$not quantified
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 submitta l, please submit resumes
as separate PDFs if the applicant would like those excluded from the web posting of th is
application . If the applicant does not have a project manager indicate how you intend to solic it
project management support. If the applicant expects project management assistance from
AEA or another government entity , state that in this section .
Alaska Village Electric Cooperative (AVEC), the electric utility serving Ambler, Shungnak, and Kobuk, will
provide overall project management and oversight.
Steve Gilbert, Manager, Community Development and Key Accounts, would lead the project
management team consisting of AVEC staff, consultants, and contractors. Together with his group,
Steve would provide coordination of the permitting and design work proposed. The group's resources
incl ude a project coordinator, accountant, project/construction manager (PM/CM), and a community
liaison. Mr. Gilbert will be the program manager for this project and will assign project manager
resources to implement the project. Mr. Gilbert's resume is attached .
Also involved with the project management and grant administration is Meera Kohler as the President
and CEO of AVEC. Ms. Kohler ha s 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 CEO of AVEC and in this position has the
ultimate grant and project responsibilities.
Please fill out form provided below. You may add additional rows as needed .
Milestones Tasks Start Date End Date
Project Kick-off Meeting July 1, 2014
Topographical Survey I Mapping
River Cross Sections and CL Survey July 16, 2014 July 29, 2014
Process Survey Data Ju ly 30, 2014 August 12,
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