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HomeMy WebLinkAboutKAK Wind Diesel Grant Application (NSB)Renewable Energy Fund Grant Application Kaktovik Wind Diesel Final Design and Permitting Round VII North Slope Borough Project Location: Kaktovik, Alaska AEA 2014-006 Application Pagel of 22 7/2/2013 Renewable Energy Fund Round VII Grant Application - Standard Form 'RIC) ENERGY AUTHORITY 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. Kaktovik Wind Diesel Design and 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 fo►mat as follows: 61.195676.-149.898663. If you would like assistance obtaining this information please contact AEA at 907-771-3031. The location of this project is Kaktovik, Alaska. Kaktovik will be the community affected by the outcomes of this project. Kaktovik is located at latitude and Longitude of 70.132607,- 143.623838 (Google Map). 2.2.2 Community benefiting — Name(s) of the community or communities that will be the beneficiaries of the project. Kaktovik, Alaska will be the beneficiary of this project 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type X Wind Biomass or Biofuels (excluding heat -only) 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 X Construction Reconnaissance Feasibility and Conceptual Design Final Design and Permitting Construction and Commissioning AEA 2014-006 Grant Application Page 3 of 22 7/1/2013 Renewable Energy Fund Round VII i ® Grant Application - Standard Form ® ENERGY AUTHORITY 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 $440,000 2.7.2 Cash match to be provided $ 44,000 2.7.3 In -kind match to be provided $0 2.7.4 Other grant funds to be provided $0 2.7.5 Other grant applications not yet approved $0 2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $484,000 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 f $4,565,200 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 construction phase projects. 2.7.9 Estimated Direct Financial Benefit (Savings) I $220,000/year 2.7.10 Other Public Benefit If you can calculate the benefit in terms $ 15,000/year 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. The North Slope Borough's project management approach to this project, and to its overall energy upgrade program, is to utilize a team approach consisting of North Slope Borough staff, external consultants and general contractors. Mr. Richard San Jose will be the Program Manager and will be the contact for any technical questions. Mr. Timothy Rowe is the Grants Administrator and will handle grant paperwork, amendments and financial matters. North Slope Borough provides a project team from its operating staff. The Program Manager, Richard SanJose, provides oversight to Project Administrators who interface with the Engineering Consultant and General Contractor. The PM and PA group provides internal focus and coordination of special projects including project development, planning, construction AEA 2014-006 Grant Application Page 5 of 22 7/1/2013 Renewable Energy Fund Round VII ®® _ Grant Application Standard Form ®ENERGY AUTHORITY 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 North Slope Borough will ultimately be responsible for successful completion of the project, using partners that have successfully installed similar systems in the recent past. Electrical system engineering will be subcontracted, using current internal procurement practices and selection of engineering service providers from prequalified organizations. The contracted A&E firm will complete the design for the wind turbine foundations. The North Slope Borough will subcontract for the construction of the foundations and the contracted ME firm will manage that construction In the construction phase, based on the recommendation of the conceptual design report it is foreseen that three Vesta V27 will be placed at the second site that was investigated. The V27 is pitch -regulated, has a synchronous (induction) generator, active yaw control, a 27 meter diameter rotor, is rated at 225 kW power output, and is available with 30, 40, or 50 meter tubular steel towers. The site identified is Kaktovik Site 2 located at 70007'30.71" north latitude, 143039'44.91" west longitude, at an elevation of approximately 50 feet MSL. The site is located closer to the community and water source lake, and is also on KIC lands. 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. North Slope Borough will assign a project manager to the project. One responsibility of the project manager will be to compile periodic progress reports for use by the Authority. Weekly and monthly project coordination meetings will be held with the project team to track progress and address issues as they arise. 3.5 Project Risk Discuss ❑ctential problems and how you would address them. Logistical and construction activities and weather all contain significant risks. The North Slope Borough routinely purchases Builder's Risk insurance to mitigate its exposure to these risks. In addition to outside insurance, the experienced team of North Slope Borough and contracted A&E firms with projects much like this one is similar circumstances reduces the risk. Logistics and weather are routinely issues in rural Alaska. The North Slope Borough has extensive experience working in rural Alaska under these conditions. Crucial to successful completion of projects in these environments are advanced planning and flexibility in timing. AEA 2014-006 Grant Application Page 7 of 22 7/1/2013 Renewable Energy Fund Round VII AL ASKA Grant Application - Standard Form ENERGY AUTHORITY NSB's existing Kaktovik power plant is located on Fourth Street South on the southern outskirts of Kaktovik. The power plant is owned and maintained by the NSB. The plant, built in 2000, consists of an 82-foot by 60-foot insulated pre-engineered steel structure. The power plant contains generator appurtenances, day tanks, an office, bathroom, storage area, a maintenance area, radiator room and switchgear. The Power Plant does not have boilers; the building utilizes waste heat only. From the power plant two feeders serve the (2) 1000kVA transformers that feed north and south distribution loops for the village The building is founded on a passively refrigerated, insulated slab -on -grade type foundation. The power plant contains the following Caterpillar generator sets: (2) Caterpillar 910 kW 3512 diesel generator - (Last Major Overhaul in 2012) (2) Caterpillar 450 kW 3508 diesel generator - (Last Major Overhauled in 2012) 2,720 kW Total Generation Capacity Currently there are four generators installed with space available for two additional generators. An electric boiler could be placed within the space allocated for one of the future generators. This would still allow for one future generator should the village power requirements grow requiring a fifth generator. The existing power plant switchgear is rated 4000A, 277/480V, 3-Phase, 4-Wire consisting of six (6) generator sections, a master control section, and two (2) distribution sections. Four (4) of the six (6) generator sections contain generator breakers and controls (Caterpillar EMCP II) and the remaining two (2) generator sections are spared for future use containing only generator breakers without controls. The master section contains the Switchgear PLC, various controls, gauges and alarm indicators as well as a totalizing meter, east and west feeder meters and the station service meter. Distribution Section #1 contains the east and west feeder breakers as well as provisions for a future 1600A frame feeder breaker. Distribution Section #2 contains the Station Service feeder breaker as well as two additional spare feeder breakers. The switchgear was designed and manufactured by Controlled Power Inc. out of Bothell, WA for NC Machinery (generator supplier). The Power Plant is also scheduled for major upgrades and/or replacement, with design beginning as early as 2014. This work would include a new Paralleling Switchgear with a new Allen Bradley PLC and Woodward EasyGen Generator Control system. According to the historic Alaska Energy Authority records (AEA) Power Cost Equalization (PCE) program, the power plant generated a total of 4,806,050 kWh in Fiscal Year 2012 with an average efficiency of 13.25 kWh per gallon of diesel consumed. A new wind turbine installation would require the use of one of the existing spare switchgear generator sections. The existing feeder breakers in one of the sections could be utilized to connect the new wind turbines to the switchgear. Only a trip unit would need to be replaced within the existing breaker as the frame size is adequate for the proposed wind turbine capacity, however, it may be desired to replace the existing breaker with a new GE PowerBreak II model per current NSB standards. The section would also need to be equipped with a new controller that would be connected to the existing Switchgear PLC to allow for proper load sharing between the new wind turbines and the existing diesel generators. Appendix A shows the existing Power Plant One -Line Diagram with the addition of a typical Wind Turbine installation. The proposed location for the new wind turbines will require a new overhead, 2400/4160V, 3- Phase, 4-Wire distribution line as well as two (2) 750kVA pad mounted transformers, one at the wind farm and the other at the power plant, to step the voltage up and back down prior to AEA 2014-006 Grant Application Page 9 of 22 7/1/2013 Renewable Energy Fund Round VII i® Grant Application Standard Form ® ENERGY AUTHORrY Water in Kaktovik comes from a fresh water surface pond which must be processed for use as potable water. Reliable electric service is required for the continuous operation of the water and wastewater systems and to prevent freezing of the systems which causes extensive damage and interruptions in service. Kaktovik is subject to long periods of darkness. Reliable electric service is essential for the operation of home lighting, streetlights and security lighting. Children walk to school and outside lighting helps them find their way and be on the lookout for hazards such as deep snow or in the extreme case, polar bears Residents of Kaktovik rely on a subsistence lifestyle where food is gathered and harvested, then stored for later use. Refrigeration is essential for the extended storage of perishable food. Reliable electric service is essential for proper freezer storage of food during summer months. The North Slope Borough expects the addition of wind turbines to the electric generation system to reduce the amount of diesel fuel used on the island for power generation and for heating. 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 description Wind power is the renewable energy option of choice for Kaktovik. There are no other alternative or renewable energy options that are currently, commercially viable. The community and NSB have the choice of diesel fuel or wind energy. The recommendation for Kaktovik is the installation of three Vestas V27 turbines at Kaktovik Site 2 for a total cumulative generation capacity of 675 kW. This turbine configuration has a 675 kW rated generation capacity, which exceeds the current average electrical load for Kaktovik. The economic evaluation above assumes that the turbine operates at 80% turbine availability without exceeding rated energy output levels. However, for better system performance, the turbines should be pitch controlled to modulate energy output to a level that provides medium penetration to the Kaktovik grid and adequate excess energy to meet recovered heat demands. Optimum installed Capacity The recommended system consists of three Vesta V27 turbines to operate with the existing diesel plant as a wind -diesel hybrid power system. Installed wind power capacity of this configuration would be 675kW. AEA 2014-006 Grant Application Page 11 of 22 7/1/2013 Renewable Energy Fund Round VII Grant Application - Standard Form ENERGY AUTHORITY habitat where the end of the avoidance period is August 10 FAA 7460-1 Notice of Proposed Construction or Alteration 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will ha nHrlraccarI- • 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 Kaktovik lies on the north shore of Barter Island, between the Okpilak and Jago Rivers on the Beaufort Sea coast. It is within the 19.6-million-acre Arctic National Wildlife Refuge, an occasional calving ground for the porcupine caribou herd. The area encompasses 0.8 sq. miles of land and 0.2 sq. miles of water. The climate of Kaktovik is arctic. Temperatures range from -56 to 78 OF. Precipitation is light, averaging 5 inches, with snowfall averaging 20 inches annually. Kaktovik, Alaska is located on the northern coast of Alaska and is underlain by continuous stable permafrost. There is one known threatened or endangered species, the Polar Bear, in the Kaktovik vicinity. The USFWS has published a voluntary Interim Guidelines to Avoid and Minimize Wildlife Impacts from Wind Turbines document. Consideration of threatened or endangered species and for birds, in general, is critical to wind farm development. Kaktovik is in the North Slope Borough Coastal Resource Service Area and is subject to a Coastal Zone Consistency Determination. Coastal Zone review is conducted through the State of Alaska Department of Natural Resources (ADNR), Office of Coastal and Ocean Management (OC&OM). Coastal Zone review functions as a clearing house for all permits issued by State agencies. Environmental Approach. The engineering contractor will organize a pre -application meeting to be coordinated through the ADNR, OC&OM office for the Kaktovik, Alaska Wind Diesel Project. All agencies, including federal agencies, will be asked to participate. The meeting will identify and discuss appropriate permit issues and provide agency perspective on the proposed development. Discussions should include actions to avoid, minimize and mitigate wetlands impacts. Preliminary concerns for impacts to the National Preserve and possible cultural sites will be identified. Results of this agency pre -application meeting will be a three to five page meeting report summarizing agency concerns, issues and possible mitigation or compensation proposals. This will be as comprehensive as possible but may not identify all permits required for project development given the preliminary nature of the development proposal. 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, AEA 2014-006 Grant Application Page 13 of 22 7/1/2013 Renewable Energy Fund Round VII ®4EMD ® ►SKA - _. Grant Application Standard Form 4MMID ENERGY AUTHORITY sustainable basis. Annual average resource availability_ 80% Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other 4 ii. Rated capacity of generators/boilers/other 2,720kW (9X910kW, 2X450kW) iii. Generator/boilers/other type Diesel iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other 12.78 kWh/gal b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor 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] 4,600,000 kWh ii. Fuel usage Diesel [gal] 362,584 Other iii. Peak Load 769 kW iv. Average Load 547 kW v. Minimum Load 210 kW vi. Efficiency 12.78 kWh/gal vii. Future trends Average power demand of 813 kw is estimated by 2032 d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 115,000 ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 1 Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity Wind - Vestas V27 turbines with a capacity of 675 (Wind, Hydro, Biomass, other) kW 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. AEA 2014-006 Grant Application Page 15 of 22 7/1/2013 Renewable Energy Fund Round VII 4® Grant Application - Standard Form 1®ENERGY AUTHORITY 4.4.5 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area. If the is for a PCE eligible utility please discus what the expected impact would be for both pre and post PCE. For PCE eligible sales, about 5% of the benefit of reduced electric costs is passed on to ratepayers, with the remaining 95% accruing to State of Alaska thru reduced PCE credits to end users. For non-PCE eligible sales, end users would receive the entire benefit of reduced power costs from a wind project. Savings for non-PCE customers can be substantial and this should result in a positive economic impact for the community. Offset of heating oil use with excess wind energy is another direct benefit. Depending on system design, heating oil offset can be for commercial end users, residential end users, or both. 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 A wind study analysis has been conducted for this project. The findings in 2010 follow. HOMER — projected annual fuel savings: 20-year lifetime fuel savings (gallons): 960,000 gallons @ $4.09/gal, escalating at 4%/year gives a total savings of $5.3 MM. 20-year lifetime energy savings (kWh): 14,000 MWh @ $032/kWh fuel cost, escalating at 4%/year gives a total savings of $6.6 MM Non -economic benefits — CO2 reduction (@22.2 #/gallon CO2): 530 T/yr or 10,600 tons in a 20-year life. The non -economic benefits to the Alaskan population at large will be from the reduced carbon footprint of the power plant. By reducing the amount of fuel burned at the Kaktovik power plant by over 13%, we will prevent over 548 metric tons of carbon dioxide from entering the atmosphere each year. Other significant emissions improvements are a reduction of 1350 kg/year of carbon monoxide and 12,100 kg/year of nitrogen oxides. 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 AEA 2014-006 Grant Application Page 17 of 22 7/1/2013 Renewable Energy Fund Round VII �® __ Grant Application Standard Form 41111111111E)ENERGY AUTHGRFY amended timelines for the grants provided by AEA. 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. North Slope Borough is the provider of local power and energy in the Borough. They own all local utilities; a draft resolution for the Borough Assembly is attached. The resolution will be presented to the Borough Assembly during the October 2013 meeting. SECTION 9 — GRANT BUDGET Tell us how much you are seeking in grant funds. Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Provide a narrative summary regarding funding source and your financial commitment to the project The North Slope Borough is seeking $440,000 in grant funding to complete the final design and permitting phase of this project. The North Slope Borough will provide project administration as in -kind match in the amount of $33,446 and an additional $10,554 in cash match which will bring the total contribution to 10% of the total award. Please provide a short narrative, and cost estimate, identifying the metering equipment, and its related use to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. The cost of this phase of the project was estimated during prior phases of this project. The funding will be utilized in contracting an Architectural and Engineering firm to complete the necessary work for this project. AEA 2014-006 Grant Application Page 19 of 22 7/1/2013 Renewable Energy Fund Round VII ®® A Grant Application - Standard Form GINNED ENERGY AUTHORITY SECTION 10 — AUTHORIZED SIGNERS FORM Community/Grantee Name: North Slope Borough Regular Election is held: Every 3 Years Authorized Grant Signer(s): Date: 1st Tuesday in October Printed Name Title Term Signature Jacob Adams Sr. Chief Administrative Office N/A I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term igna re Charlotte E. Brower Mayor 2011- 2014 Grantee Contact Information: Mailing Address: Phone Number: Fax Number: E-mail Address: Federal Tax ID #: PO Box 69 Barrow, AK 99723 (907) 852-0467 (907) 852-4145 Timothy. Rowe _north-slope.org 92-0042378 Please submit an updated form whenever there is a change to the above information. REVIEWED AS TO FORM N ttorney t Date AEA 2014-006 Grant Application Page 21 of 22 7/1/2013 Renewable Energy Fund Round VII ®® Q Grant Application Standard Form ® ENERGY AUTHORITY --� SECTION 11 —ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant's Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project web site. B. Letters or resolutions demonstrating local support per application form Section 8. C. For heat projects only: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant's governing body or management per RFA Section 1.4 that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. - Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. An electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Mayor Charlotte E. Brower Signature Title Mayor Date o1/2q /U AEA 2014-006 Grant Application Page 22 of 22 7/1/2013 Appendix A — Resumes Appendix B — The following Resolution resolution will be considered by the North Slope Borough Assembly on 10/8/13 NORTH SLOPE BOROUGH RESOLUTION SERIAL NO.41-2013 A RESOLUTION AUTHORIZING THE NORTH SLOPE BOROUGH TO PARTICIPATE IN THE RENEWABLE ENERGY GRANT PROGRAM FOR FY2014 WHEREAS, the State of Alaska has established the Renewable Energy Grant Recommendation Program in Alaska Statute AS 42.45.045; and WHEREAS, the Alaska Energy Authority (AEA) is soliciting competitive applications from qualified applicants for the purpose of recommending grants for renewable energy projects to be funded by the Alaska State Legislature for FY14; and WHEREAS, the North Slope Borough is a home rule municipal corporation duly organized and existing under the Constitution and laws of the State of Alaska, and is therefore a local government and "eligible applicant" as defined by AS 42.45.045(1)(1); and WHEREAS, the North Slope Borough (Borough) is in compliance with all federal, state, and local laws including existing credit and federal tax obligations; and WHEREAS, the Mayor or her designee is authorized as the point of contact to represent the Borough for the purpose of this application; and WHEREAS, the North Slope Borough desires to apply for funds to provide for and administer the following projects under this program: GRANT PROPOSED TOTAL PROJECT TITLE AMOUNT BOROUGH REQUESTED MATCH Kaktovik Wind Generation Final Design and $440,000 $44,000 $484,000 Atqasuk Transmission Line Final Design and $2,017,818 $201,782 $2,219,600 Permittingi— TOTAL $2,457,818 $245,782 1 $2,703,600 and Resolution 41-2013 Page 2 of 2 WHEREAS, pursuant to AS 42.45.045(d)(1), the AEA has been directed to evaluate the benefit and feasibility of the projects, and prioritize projects that may receive assistance, with "significant weight" being given to the amount of matching funds an applicant is able to provide, and therefore the Borough proposes to provide funding at the match amounts indicated in the application. NOW, THEREFORE, BE IT RESOLVED THAT: The North Slope Borough Assembly authorizes the Mayor to submit an application for the grant projects listed above, to negotiate and execute any and all documents required for approval and management of grant funds, and to execute any subsequent amendments to the agreements to provide for the adjustments to the projects within the scope of services or tasks, and based upon the needs of the projects. INTRODUCED: ADOPTED: ATTEST: Jeannie Brower, Borough Clerk Date: Michael Aamodt, President Date: Charlotte E. Brower, Mayor Date: Appendix C — Conceptual Design Report DRAFT KAKTOVIK WIND PROJECT CONCEPT DESIGN REPORT Prepared For: North Slope Borough P.O. Box 69 Barrow, AK 99723 Prepared By: Mark Swenson, PE I`ry 1 HATTENBURG DILLEY & LINNELL Enyineeriny Consultants 3335 Arctic Blvd., Ste. 100 Anchorage, AK 99503 Phone: 907.564.2120 Fax: 907.564.2122 August 30, 2013 DRAFT Kaktovik Wind -Diesel Project North Slope Borough Concept Design Report meter or 24 meter diameter rotor, and is available on 30 and 37 meter tubular steel monopole towers, or on a 48 meter four -leg lattice tower. The NPS 100-21 is available as fully arctic -climate certified to -400 C and is the most represented village -scale wind turbine in Alaska with a significant number of installations in the Yukon-Kuskokwim Delta region of the state, but also five turbines in Gambell and Savoonga on St. Lawrence Island. The (7) Northern Power 100 Arctic turbine array has a maximum power generation output of 700 kW. • The third turbine configuration consists of (3) Vestas V27. The V27 is pitch -regulated, has a synchronous (induction) generator, active yaw control, a 27 meter diameter rotor, is rated at 225 kW power output, and is available with 30, 40, or 50 meter tubular steel towers. Each turbine would be installed on a group of steel piles and a concrete or steel pile cap that attaches to the tower base. A comparison of the three turbine configurations installed at each site is presented in Tables EX-1 and EX-2 below. Tahla FX_1 - Turhina oltarnativa Cmmnaricnn Summary Estimated Annual Estimated Energy Capital Cost production Generation Estimated per Installed Alt Turbine Selection Site Capacity (kW) Capital Cost kW @ 100 % 2 Availability 1 (3) AW 29-225's 675 $7.8 M $11,579 1,684 MWh 2 (7) NP 100's 2 1700 1 $11.3 M $16,161 1,975 MWh 3 (3) V27's 1 2 1 675 1 $7.1 M $10,552 1,576 MWh *Source: Annual Energy Production data taken from V3 Energy's August 2013 Kaktovik Wind -Diesel Analysis Tnhla FX_7- Frnnnmir Onalvcie Summary Annual Wind Wind Heating Fuel Generation @ Wind Energy For Energy For Wind as % Wind as % Displaced By Alt 80%Availability Power (kWh/yr) Heat Total Power Total Thermal Energy (kWh/yr) production (%) Production MWind (gal/yr) (kWh) 1 1,347,679 1,240,655 107,024 28 2.3 2,736 2 1,579,760 1,443,036 136,724 32.5 1 3.0 3,495 3 1,390,849 1,261,189 129,660 28 1 2.8 3,314 *Source: Annual Energy Production data taken from V3 Energy's August 2013 Kaktovik Wind -Diesel Analysis Based on the analysis presented above, we recommend NSB proceed with design and permitting for installation of Alternative 3: Three V27's at Site 2. If site control cannot be negotiated for Kaktovik Site 2, we recommend that the turbines be installed at Site 1. HATTENBURG DUEY 6 UNNELL August 30, 2013 ii Fes. F,1, ­,0 DRAFT Kaktovik Wind -Diesel Project North Slope Borough Concept Design Report 7.0 PREFERRED ALTERNATIVE................................................................................I.......... 17 8.0 GEOTECHNICAL REVIEW.............................................................................................. 17 9.0 ENVIRONMENTAL REQUIREMENTS............................................................................. 18 9.1 HISTORIC AND ARCHAEOLOGICAL: ALASKA STATE HISTORIC PRESERVATION OFFICE (SH PO)....................................................................................................................................... 18 9.2 WETLANDS AND WATERS OF THE U.S.: U.S. ARMY CORPS OF ENGINEERS (USACE) ...... 18 9.3 FEDERAL AVIATION ADMINISTRATION (FAA)................................................................... 18 9.4 BIOTIC RESOURCES AND FEDERALLY LISTED THREATENED AND ENDANGERED SPECIES: UNITED STATES FISH & WILDLIFE SERVICE(USFWS)............................................................... 19 9.S CONTAMINATED SITES, SPILLS, AND UNDERGROUND STORAGE TANKS ........................ 19 9.6 ANADROMOUS FISH STREAMS.......................................................................................... 19 9.7 STATE REFUGES, CRITICAL HABITAT AREAS AND SANCTUARIES ...................................... 19 9.8 LAND OWNERSHIP.............................................................................................................. 19 9.9 SUBSISTENCE ACTIVITIES................................................................................................... 20 9.10 AIR QUALITY..................................................................................................................... 20 9.11 NATIONAL ENVIRONMENTAL POLICY ACT REVIEW (NEPA)........................................... 20 9.12 ENVIRONMENTAL SUMMARY AND RECOMMENDATIONS ............................................ 20 10.0 CONCLUSIONS AND RECOMMENDATIONS.................................................................. 22 11.0 REFERENCES................................................................................................................23 Figures Figure 1: AEA Wind Resource Map................................................................................................ 1 Figure2: Site Map.......................................................................................................................... 2 Figure 3: 2012 load Data Provided By NSB.................................................................................... 6 Figure 4: 2013 load Data Provided By NSB.................................................................................... 6 Figure5: Kaktovik Met Tower........................................................................................................ 8 Figure6: Kaktovik Site 1............................................................................................................... 10 Figure7: Kaktovik Site 2............................................................................................................... 11 Figure8: Kaktovik Site 3............................................................................................................... 12 Figure 9: Aeronautica AW29-225................................................................................................. 13 Figure 10: Northern Power 100................................................................................................... 14 Figure11: Vestas V27.................................................................................................................... 14 August 30, 2013 V ytA1 TENBURG DU Ev g L,AELL North Slope Borough DRAFT ABBREVIATIONS AAC Alaska Administrative Code ADEC Alaska Department of Environmental Conservation ADF&G Alaska Department of Fish and Game ADNR Alaska Department of Natural Resources AEA Alaska Energy Authority AVEC Alaska Village Electric Cooperative B/C Benefit -to -Cost Ratio CRC Cultural Resource Consultants, LLC DA Department of Army EA Environmental Assessment ER Environmental Review FAA Federal Aviation Administration FY Fiscal Year FONSI Finding of No Significant Impact OF Degrees Fahrenheit HDL Hattenburg Dilley & Linnell ISER Institute for Social and Economic Research kW Kilowatt kWh Kilowatt Hour M Million Met Meteorological Mph Miles per hour MWh Megawatt hour NLUR Northern Land Use Research NP100 Northern Power 100 Arctic NWI National Wetlands Inventory NWP Nationwide Permit OEAAA Obstruction Evaluation/Airport Airspace Analysis PCE Power Cost Equalization PCN Pre -Construction Notification PLC Programmable Logic Controller PM Particular Matter SCADA Supervisory Control and Data Acquisition Sec Section SMNC St. Michael Native Corporation USFWS United States Fish & Wildlife Services USGS United States Geological Services WASP Wind Atlas and Application Program Yr Year Kaktovik Wind -Diesel Project Concept Design Report HAMNHURG DiLLEY & UNNELL August 30, 2013 vi r DRAFT Kaktovik Wind -Diesel Project North Slope Borough Concept Design Report F>!F>1��Z�iL�1►J The proposed wind turbine project is located near the village of Kaktovik on Barter Island. Kaktovik is located on the northern shore of Barter Island facing the Kaktovik Lagoon and the Beaufort Sea. The village is on the northern edge of the Arctic National Wildlife Refuge (ANWR), 640 miles northeast of Anchorage and 118 air miles southeast of Prudhoe Bay. Kaktovik is situated at approximately 70°7'03.56" North Latitude and-143°37'56.44 West Longitude (Sec. 18, T09N, R033E, Umiat Meridian). There are no roads leading to Kaktovik, its only access is by flight or by barge service. (See Figure 2). The barge service makes a trip once a year from Seattle leaving June and arriving in Kaktovik sometime in August. Year-round aircraft access is available via an existing 4,820-foot long by 100-foot wide gravel runway in Kaktovik. Currently a new runway is under construction to replace the existing, which will consist of a 4500-foot long by 100-foot wide gravel runway. The runway is owned and maintained by the North Slope Borough. Kaktovik has a population of 239 residents (2010 U.S. Census Population), with 88.7% being Alaska Native or American Indian. The local residents depend heavily on the subsistence harvest of marine and terrestrial mammals. Primary employment in Kaktovik is with the North Slope Borough, North Slope Borough School District and Kaktovik Inupiat Corporation. Figure 2: Site Map HATTENBURG MLLEY d LINNELL August 30, 2013 2 FM E„g,,,so,,,,a cope na i, DRAFT Kaktovik Wind -Diesel Project North Slope Borough Concept Design Report connect the new wind turbines to the switchgear. Only a trip unit would need to be replaced within the existing breaker as the frame size is adequate for the proposed wind turbine capacity, however, it may be desired to replace the existing breaker with a new GE PowerBreak II model per current NSB standards. The section would also need to be equipped with a new controller that would be connected to the existing Switchgear PLC to allow for proper load sharing between the new wind turbines and the existing diesel generators. Appendix A shows the existing Power Plant One -Line Diagram with the addition of a typical Wind Turbine installation. The proposed location for the new wind turbines will require a new overhead, 2400/4160V, 3- Phase, 4-Wire distribution line as well as two (2) 750kVA pad mounted transformers, one at the wind farm and the other at the power plant, to step the voltage up and back down prior to tying into the existing power plant switchgear. According to the historic Alaska Energy Authority records (AEA) Power Cost Equalization (PCE) program, the power plant generated a total of 4,806,050 kWh in Fiscal Year 2012 with an average efficiency of 13.25 kWh per gallon of diesel consumed Waste Heat. Waste heat is captured from all four generators via the engine jacket water. Exhaust stack heat recovery is not being utilized at this time. The engine jacket water rejects heat to a waste heat plate and frame heat exchanger located in the power plant radiator plenum. Waste heat from the engines is distributed to the various NSB buildings via two centrifugal pumps connected to a waste heat pipe manifold. Two waste heat loops are connected to the manifold. The first loop is buried and connects the new power plant to the old power plant with a tee off to the Utilities -School District Warehouse (USDW) and Public Works Vehicle Maintenance Shop (VMS) buildings. The second loop is an above -ground loop that supplies the Water Treatment Plant, Health Clinic, and Fire Station. All facilities are operated by the NSB. Both loops are constructed with well -insulated arctic pipe which results in minimal heat loss to the atmosphere or ground. The engine jacket water heat recovery system on average generates approximately 1.1 million BTUs per hour of useable energy. As presently constructed the village -wide waste heat recovery system is able to absorb all of this heat for most of the year. Only during a few summer months is more waste heat generated than can be used. During this period the engine radiators are used to cool the engines; the rest of the year the waste heat system acts as the engine radiators. If wind power is generated in the village an electric boiler secondary controller would be used to store the energy that cannot be absorbed instantaneously by the electric power grid. The electric boiler would be located in the power plant or in a nearby module and would connect to the waste heat loop downstream of the jacket water heat exchangers. The new electric boiler will be fed from a feeder breaker from the existing switchgear Distribution Section #2. The existing spare 800A frame breaker should be adequate for the new electric boiler. If a new radiator is installed for excess waste heat rejection, the associated motor can be powered from the existing power plant Panel 'AA', similar to the existing radiators. August 30 2013 4 �RATTeNsu DILLen BUkkEL, - �, „�. DRAFT Kaktovik Wind -Diesel Project North Slope Borough Concept Design Report 2012 LOAD DATA 900 800 700 600 3 500 400 300 200 100 0 HIGH AVG ��. - — _­!t­ � LOW _k �� � PQ��� �P� ,J�,�, >J�� PJ�J�� O�� oG40 ��� Figure 3: 2012 load Data Provided By NSB 2013 LOAD DATA 900 800 700 600 500 400 300 200 100 0 HIGH Low JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST Figure 4: 2013 load Data Provided By NSB The calculated average hourly load for calendar year 2012 was 547 kW, with a peak recorded load of 769 kW, and an average daily demand of 13,120 kWh. Figure 4 shows a maximum 780 kW Demand recorded by the Kaktovik Power Plant in January of 2013. Table 1 provides additional energy consumption data for Kaktovik. Assuming that the community demand for power will increase linearly with a 2% average population growth rate, it is estimated that the power generation system will experience an average power demand of 813 kW, a peak power demand of 1,143 kW, and an average daily energy demand of 19,496 kWh in the year 2032. August 30/ 2013 6 I_MnAITENBURGFDILLEY B LINNELL nyinro••ny i= �n e.11�nl� North Slope Borough DRAFT Kaktovik Wind -Diesel Project Concept Design Report 3.0 WIND DATA ACQUISITION AND MODELING 3.1 DATA ACQUISITION On June 26, 2009 NSB installed a 30 meter tall meteorological (met) tower located 650 meters (2,100 feet) south of the village boundary near the sewage treatment plant (See Sheet G1.03, Appendix A). The met tower location is owned by Kaktovik Inupiat Corporation (KIC). The met tower was equipped with three separate anemometers, a wind vane, a temperature sensor, a relative humidity sensor, and a voltmeter. Two of the anemometers were installed 30 meters above ground level and one was installed 20 meters above ground level. The tower collected wind data at this location until October 2, 2009 after which the data card was lost and all data from October 2 to November 13 were lost with it. Following the loss of the data card, December experienced a frequent occurrence of icing events which rendered the anemometers and wind vane inoperable for much of the month. Early January 2010 resulted in both the 30 meter level anemometers breaking off the tower and they were not replaced until March 3, 2010. The collected data was stored on a data logger mounted to the base of the met tower. Stored data was downloaded every 3 to 6 months during site visits to inspect the equipment. The quality of the data was poor with only 62 to 71 percent data return from the anemometers and wind vane. NSB contracted with V3 Energy to analyze the collected wind and temperature data and calculate wind speed, air density, prevailing wind direction, wind shear, and other factors effecting wind energy production. The data collection process and modeling results are further defined in V3 Energy's August 2013 Kaktovik Wind -Diesel Analysis (Appendix B). August 30, 2013 Figure 5: Kaktovik Met Tower M RAJTENBURG DILLEY d L INNELL North Slope Borough Kaktovik Wind -Diesel Project Concept Design Report thin organic mat (1 to 2 feet) with ice -rich fine-grained permafrost soils and the potential for saturated sands and fine gravel as deeper depths - typical of the Barter Island area. Bedrock is not expected. The wind tower foundation type at this site would likely be a pile group (6 or 8 in a hexagon or octagon layout) of passively refrigerated slurry -back steel piles in augured holes, with a steel or concrete pile cap to transfer loads from the tower base to the piling. Access to the site would be along an existing trail that will be upgraded during the airport project, and then a new access road across virgin tundra to the site. Easements with KIC would be required. Wind modeling suggests a potential Class 5/6 wind resource at this site. See V3 Energy's August 2013 Kaktovik Wind -Diesel Analysis (Appendix B) for wind modeling information. The relatively high potential wind resource at this site makes it a desirable wind farm location. Figure 6: Kaktovik Site 1 iurTElIOM dU EY d L MEll August 30, 2013 10 I„,�„,. DRAFT Kaktovik Wind -Diesel Project North Slope Borough Concept Design Report Figure 8: Kaktovik Site 3 At the time of the site investigation, Kaktovik Site 2 appears to be the most promising alternative for wind farm construction due to the higher exposure, lower environmental impacts, close proximity to the power plant and reasonably good access. Alternatives 1, 2, and 3 presented in Section 5.0 below include wind turbine options installed at this site. The extrapolated wind data from the Kaktovik Met Tower suggests a potential Class 5/6 wind resource at Kaktovik Site 2 which is sufficient for power generation. See V3 Energy's report in Appendix B for wind modeling information. 5.0 WIND TURBINE SYSTEM ALTERNATIVES 5.1 KAKTOVIK WIND TURBINE ANALYSIS The following 3 turbine alternatives were selected for evaluation at Site 2: the Aeronautica 29, Northern Power 100 Arctic, and Vestas V27. The most significant factor with respect to the choice of wind turbines in Kaktovik is the height limitation dictated by the proximity of the prospective wind turbine site to the new airport. Obstruction heights are governed by FAR Part 77, Objects Affecting Navigable Airspace, and are subject to FAA review and approval to determine if the obstruction adversely impacts the national airspace system. These turbines were selected because they are small enough to meet the FAA height limitations and large enough to meet the power load of Kaktovik. See Table 2 for the comparative size. All configurations are classified as medium wind -diesel penetration systems having a goal to offset 20% to 50% of the community's energy demand with wind power. A medium penetration system provides a balance between the amount of energy provided and the complexity of the wind generation and integration systems. August 30, 2013 12 Ket f FM9liRG D!LLEY d LINNELL r:. �,�, �.,.� DRAFT Kaktovik Wind -Diesel Project North Slope Borough Concept Design Report 5.1.2 Northern Power 100 Arctic The second turbine configuration consists of seven Northern Power 100 Arctic (NP100s) turbines. The NP100's are manufactured by Northern Power Systems in Barre, Vermont. The NP100 is a 30-meter high, 100 kW, permanent magnet, synchronous, direct drive wind power generator, with a 21- meter rotor diameter, and is the most represented village scale wind turbine in Alaska with a significant number of installations in the Yukon-Kuskokwim Delta region of the state as well as five turbines in Gambell and Savoonga on St. Lawrence Island. Each turbine is equipped with active yaw control, but does not have blade pitch control capability. The seven proposed Northern Power100 Arctic generators have a maximum cumulative power generation output of 700 kW at a wind speed of approximately 32.4 mph. K 5.1.3 Vestas V27 Figure 10: Northern Power 100 The third turbine option consists of three Vestas V27 turbines. Vestas turbines were originally manufactured in Denmark; presently they are manufactured under license in India. The V27 is pitch regulated, has a synchronous (induction) generator, active yaw control, a 27 meter diameter rotor, 225 kW power output, and is available with 30, 40, or 50 meter tubular towers. St. Paul Island, Alaska currently operates the V27 turbine, and they are presently available to Alaska as a remanufactured unit from Hauls Power Systems in San Leandro, California. 5.2 ALTERNATIVE 1 - THREE AW29-225 TURBINES INSTALLED AT KAKTOVIK SITE 2 This alternative proposes installation of three AW29-225 turbines at Kaktovik Site 2 for a total cumulative generation capacity of 675 kW. The project includes construction of approximately 2,500 feet of 16-foot wide gravel access trail and three approximate 1,000 square foot circular gravel pads at the wind Figure 11: Vestas V27 tower locations. The proposed trail and wind tower pads would be insulated with rigid insulation and are anticipated to be 4 feet thick and consist of locally available sand and gravel compacted to 90% maximum density. The drivable surface of the embankment is constructed with 6-inches of crushed aggregate surface course. The turbines August 30, 2013 14 DRAFT Kaktovik Wind -Diesel Project North Slope Borough Concept Design Report 80% turbine availability. The construction cost for this alternative is estimated to be $10,552 per installed KW. See Capital Cost Estimate included in Appendix E. 5.5 ALTERNATIVE COMPARISON SUMMARY Table 3 below summarizes the capital costs and estimated annual energy production for each turbine alternative. Table 3: Alternative Comparison Summary Alt Turbine Selection Site Generation Capacity (kW) Estimated Capital Cost Estimated Capital Cost per Installed kW Estimated Annual Energy Production @ 100 Availability 1 (3) AW 29-225's 2 675 $7.8 M $11,579 1,684 MWh 2 (7) NP 100's 2 700 $11.3 M $16,161 1,975 MWh 3 (3) V27's 2 675 $7.1 M $10,552 1,576 MWh *Source: Annual Energy Production data taken from V3 Energy's August 2013 Kaktovik Wind -Diesel Analysis 6.0 ECONOMIC EVALUATION 6.1 METHODOLOGY AND APPROACH The Kaktovik Wind Diesel Analysis prepared by V3 Energy (Appendix B) includes an economic analysis of the Kaktovik power generation system using the HOMER energy modeling software for the turbine alternatives. The software was configured for a medium to high penetration system with the first priority to meet the community's electrical demands and the second priority to serve the recovered heat system through a secondary load controller (electric boiler). The analysis considered an average diesel fuel price of $5.27 per gallon for the projected 20-year project life. The modeling assumptions and results of V3's analysis are presented in Appendix B. V3 inserted the power generation and fuel consumption results from the HOMER modeling into the economic modeling program developed by the Institute for Social and Economic Research (ISER). AEA uses the ISER economic model as the standard approach for scoring wind project design and construction grant applications. The ISER model considers the capital cost of construction and annual cost of operating and maintaining the wind turbines and weighs them against the benefit cost savings realized from the volume of displaced diesel fuel required for power generation and heating public facilities. The analysis develops a benefit/cost ratio that can be used to compare wind turbine alternatives. See V3's economic analysis results in Appendix B. August 30, 2013 16 F DRAFT Kaktovik Wind -Diesel Project North Slope Borough Concept Design Report frozen -back into the permafrost. The foundations are consistent with the preliminary recommendations of the Geotechnical Review. 9.0 ENVIRONMENTAL REQUIREMENTS 9.1 HISTORIC AND ARCHAEOLOGICAL: ALASKA STATE HISTORIC PRESERVATION OFFICE (SHPO) Section 106 of the National Historic Preservation Act requires project proponents receiving federal funds or requiring federal permits to consider the effects of their actions on properties in or eligible for inclusion in the National Register of Historic Places. Compliance with Section 106 requires consultation with the State Historic Preservation Officer (SHPO) and the North Slope Borough (NSB) Inupiat History, Language, and Culture (IHLC) Division if there is a potential adverse effect to historic properties. According to prior cultural resource assessments conducted in the vicinity of the project, there are seven known cultural resources on Barter Island. None of the known resources are in the immediate vicinity of any of the proposed site alternatives; however a field survey may be needed to determine the potential for undiscovered sites to exist. 9.2 WETLANDS AND WATERS OF THE U.S.: U.S. ARMY CORPS OF ENGINEERS (USACE) Section 404 of the Clean Water Act requires a permit for placement of fill in wetlands and waters of the United States. All of the undeveloped land on Barter Island is classified as wetland and is subject to USACE jurisdiction. Nationwide Permit (NWP) 51 for Land Based Renewable Energy Generation Facilities authorizes discharge of fill materials for wind tower construction if loss of wetlands does not exceed one-half acre. The permit also covers utility lines, roads, and parking lots within the wind generation facility. Submittal requirements for NWP 51 include a Pre - Construction Notification. Access roads and transmission lines not within the facility and used to connect the facility to existing infrastructure require separate permitting. NWP 12 (Utility lines) and 14 (Linear transportation) may be used for this purpose if loss of wetlands does not exceed one-half acre for each permit type. The USACE recommends that wetlands delineations be completed within the designated growing season for specific regions. Barter Island is located within Alaska's Arctic Coastal Plain ecoregion, which has a growing season that begins on June 20th and ends on September 18th. 9.3 FEDERAL AVIATION ADMINISTRATION (FAA) Based on preliminary review of the online Obstruction Evaluation/Airport Airspace Analysis (OEAAA) tool, all sites under consideration exceed CFR Title 14 Part 77 Notice Criteria for slope ratio. Part 77 regulations require an airspace study and filing Form 7460-1 for the proposed tower locations to determine the impacts to the national airspace system. Preliminary analysis HAT TENBURG DLLEY & LINNELL August 30, 2013 18 En yin.. ny Gons�lianls DRAFT North Slope Borough 9.9 SUBSISTENCE ACTIVITIES Kaktovik Wind -Diesel Project Concept Design Report Coordination with Kaktovik community members will be needed to ensure there is little to no disruption of hunting and harvesting activities from wind farm development. Preliminary discussions with community members indicate that Site 3 is used for subsistence waterfowl hunting. The final location of the towers will be coordinated with the community during design to minimize impacts to subsistence activities. 9.10 AIR QUALITY According to Alaska Administrative Code (AAC) 18 AAC 50, the community of Kaktovik is considered a Class II area. As such, there are designated maximum allowable increases for particulate matter 10 (PM-10) micrometers or less in size, nitrogen dioxide, and sulfur dioxide. Activities in these areas must operate in such a way that they do not exceed listed air quality controls for these compounds. The nature and extent of the proposed project is not likely to increase emissions or contribute to a violation of an ambient air quality standard or cause a maximum allowable increase for a Class II area. 9.11 NATIONAL ENVIRONMENTAL POLICY ACT REVIEW (NEPA) An Environmental Review (ER) document will be required if federal funding is used for construction of the wind turbine project. Similar to an Environmental Assessment (EA), an ER will provide an assessment of potential environmental impacts and identify avoidance, minimization, and mitigation measures. A Finding of No Significant Impact (FONSI) determination by the funding agency will be needed. 9.12 ENVIRONMENTAL SUMMARY AND RECOMMENDATIONS Table 5 below summarizes environmental data and permit requirements for development of wind turbines on each site investigated. August 30, 2013 20 HATTENBURG DiLLEV A UNNELL DRAFT Kaktovik Wind -Diesel Project North Slope Borough Concept Design Report 10.0 CONCLUSIONS AND RECOMMENDATIONS The high cost of diesel fuel and strong wind resource on Barter Island makes wind power an attractive component of NSB's electrical power generation system for Kaktovik. The wind site investigation and subsequent wind modeling analysis determined that Site 2 has a Class 5/6 wind resource and is well -suited for wind power generation. Economic evaluation of the turbine alternatives presented in this report resulted in a preferred turbine configuration of three Vestas V27 turbines installed at Site 2. The economic evaluation projected that this preferred alternative will contribute to approximately 28% of yearly power production and will offset approximately 37,136 gallons of fuel for power generation and 3,314 gallons of heating oil per year. Wind power could provide approximately 2.8% of the energy needed for heat recovery. Integration of the wind power into the diesel power plant will require a large secondary load controller to prevent overloading the grid with excess energy and tripping the generators offline. The following actions are recommended to continue the progress of wind turbine development in Kaktovik: Recommendations 1. Conduct a bird hazard study. 2. Begin discussions with the Kaktovik Inupiat Corporation for site control and access rights to Kaktovik Site 2. 3. Consult with Kaktovik community leaders to minimize the impacts to subsistence activities from a wind project development at Site 2. 4. Proceed with permitting per the permitting recommendations in Section 9. 5. Once the site is confirmed, perform a site -specific geotechnical investigation of the proposed turbine location. 6. Incorporate a secondary load controller and wind energy integration controls into the power plant design. 7. If complications resulting from site control, permitting, or the geotechnical investigation make development of Kaktovik Site 2 not feasible, relocate the proposed wind turbine project to Site 1 and reinitiate the actions stated above. 8. Perform final design of the preferred alternative and apply for construction grant funds. W.fTENBURG DiLLEY d LINNELL August 30, 2013 22 F