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Home My WebLink AboutPAICGrantApplicationApplication 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. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Application Page 1 of 23 7/2/2013 SECTION 1 – APPLICANT INFORMATIONSECTION 1 – APPLICANT INFORMATIONSECTION 1 – APPLICANT INFORMATIONSECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal)Name (Name of utility, IPP, or government entity submitting proposal)Name (Name of utility, IPP, or government entity submitting proposal)Name (Name of utility, IPP, or government entity submitting proposal) Port Alsworth Improvement Corporation (PAIC)Port Alsworth Improvement Corporation (PAIC)Port Alsworth Improvement Corporation (PAIC)Port Alsworth Improvement Corporation (PAIC) Type of Entity: 501(c)(3) Fiscal Year End Tax ID # 94-3137666 Tax Status: For-profit X Non-profit Government ( check one) Date of last financial statement audit: Type of Entity: 501(c)(3) Fiscal Year End Tax ID # 94-3137666 Tax Status: For-profit X Non-profit Government ( check one) Date of last financial statement audit: Type of Entity: 501(c)(3) Fiscal Year End Tax ID # 94-3137666 Tax Status: For-profit X Non-profit Government ( check one) Date of last financial statement audit: Type of Entity: 501(c)(3) Fiscal Year End Tax ID # 94-3137666 Tax Status: For-profit X Non-profit Government ( check one) Date of last financial statement audit: Mailing Address P.O. BOX 9998 Port Alsworth, AK 99653 Mailing Address P.O. BOX 9998 Port Alsworth, AK 99653 Mailing Address P.O. BOX 9998 Port Alsworth, AK 99653 Physical Address 1 Flight Line Rd., Port Alsworth, AK Telephone (907)781-2208Telephone (907)781-2208 Fax Email galsworth@aol.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Beth Hill Name Beth Hill Name Beth Hill Title Administrative Assistant Mailing Address General Delivery, Port Alsworth, AK 99653 Mailing Address General Delivery, Port Alsworth, AK 99653 Mailing Address General Delivery, Port Alsworth, AK 99653 Mailing Address General Delivery, Port Alsworth, AK 99653 Telephone (907)781-3033 Telephone (907)781-3033 Fax Email beth4snow@gmail.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 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 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 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)1.2.1 As an Applicant, we are: (put an X in the appropriate box)1.2.1 As an Applicant, we are: (put an X in the appropriate box)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 electric utility holding a certificate of public convenience and necessity under AS 42.05, or 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), orAn independent power producer in accordance with 3 AAC 107.695 (a) (1), orAn independent power producer in accordance with 3 AAC 107.695 (a) (1), or A local government, orA local government, orA local government, or x A governmental entity (which includes tribal councils and housing authorities);A governmental entity (which includes tribal councils and housing authorities);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 ) 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 ) 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). 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). 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.) 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.) 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.) Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 2 of 23 7/1/2013 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. 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. 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. SECTION 2 – PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Port Alsworth Hydropower: Pre-Construction Phase 1.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. This project will be at the Tanalian water falls and in-river along the Tanalian River within Lake Clark National Park lands. The Tanalian River is located adjacent to the township of Port Alsworth , AK. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. This project has the potential to beneﬁt Port Alsworth, AK and the National Park Service as well as their many visitors. 1.PROJECT TYPE Put X in boxes as appropriate 1.PROJECT TYPE Put X in boxes as appropriate 1.PROJECT TYPE Put X in boxes as appropriate 1.PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type2.3.1 Renewable Resource Type2.3.1 Renewable Resource Type2.3.1 Renewable Resource Type Wind Biomass or Biofuels (excluding heat-only) x Hydro, Including Run of River x 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) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction x Reconnaissance Final Design and Permitting x Feasibility and Conceptual Design Construction and Commissioning 1.PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. The proposed project will assess hydroelectric and hydrokinetic resource potential and economics of the Tanalian River for providing electric energy to the Community of Port Alsworth. Reconnaissance of hydroelectric at Tanalian Falls has already been complete and this project will include the feasibility and Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 3 of 23 7/1/2013 conceptual design of hydroelectric at the waterfalls. Due to land use designations at the proposed hydroelectric power plant we would also like to include a reconnaissance of in-river hydrokinetic along the Tanalian River. This portion of the proposed project has documented National Park Service support and may be a viable option for an alternate location of hydropower. 1.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.) 1.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.) If this project is viable, it has the potential to reduce expenditures on diesel fuel for electric generation. The growing community of Port Alsworth will beneﬁt from reduced electric rates and a reliable alternative to diesel fuel. Due to a growing increase in our community’s kW usage we are heavily reliant on aging aircraft to deliver fuel, this project has the potential to drastically reduce this reliance while decreasing our electrical rates. If this project is viable, it has the potential to reduce expenditures on diesel fuel for electric generation. The growing community of Port Alsworth will beneﬁt from reduced electric rates and a reliable alternative to diesel fuel. Due to a growing increase in our community’s kW usage we are heavily reliant on aging aircraft to deliver fuel, this project has the potential to drastically reduce this reliance while decreasing our electrical rates. 1.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. 1.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. Exploring renewable energy is part of a larger project of upgrading Port Alsworth’s powerhouse and bulk fuel system. Currently, PAIC and Tanalian Electric Cooperative (TEC) are working with the AEA on a conceptual design of a powerhouse and bulk fuel system. TEC has allocated $100,000 towards a new generation system. We are also working with the Lake and Peninsula School District and have a tentative agreement to receive funding for a new powerhouse building. The AEA has agreed to fund the conceptual design report in-kind. PAIC would like to incorporate renewable resources into the conceptual design and we feel that hydroelectric is our most viable option. For this portion of the project, PAIC is requesting a total of $159,000 for the reconnaissance, feasibility and conceptual design of hydroelectric power on the Tanalian River. This cost is based on a preliminary expense report provided by HATCH. (Please see attached expense report.) Mapping, survey and data collection is estimated at $99,000. Assessment of the data is estimated to cost $42,000 and the preliminary feasibility report will cost an estimated $18,000. PAIC has already funded transportation expenses for a reconnaissance of the proposed project and HATCH has provided a reconnaissance report in-kind. PAIC will provide administrative support for this project in-kind as needed, as well as additional transportation expenses that may exist. (Rough estimate of $10,000.) PAIC is requesting $159,000 from AEA to fund the pre-construction phase of hydropower in Port Alsworth. Exploring renewable energy is part of a larger project of upgrading Port Alsworth’s powerhouse and bulk fuel system. Currently, PAIC and Tanalian Electric Cooperative (TEC) are working with the AEA on a conceptual design of a powerhouse and bulk fuel system. TEC has allocated $100,000 towards a new generation system. We are also working with the Lake and Peninsula School District and have a tentative agreement to receive funding for a new powerhouse building. The AEA has agreed to fund the conceptual design report in-kind. PAIC would like to incorporate renewable resources into the conceptual design and we feel that hydroelectric is our most viable option. For this portion of the project, PAIC is requesting a total of $159,000 for the reconnaissance, feasibility and conceptual design of hydroelectric power on the Tanalian River. This cost is based on a preliminary expense report provided by HATCH. (Please see attached expense report.) Mapping, survey and data collection is estimated at $99,000. Assessment of the data is estimated to cost $42,000 and the preliminary feasibility report will cost an estimated $18,000. PAIC has already funded transportation expenses for a reconnaissance of the proposed project and HATCH has provided a reconnaissance report in-kind. PAIC will provide administrative support for this project in-kind as needed, as well as additional transportation expenses that may exist. (Rough estimate of $10,000.) PAIC is requesting $159,000 from AEA to fund the pre-construction phase of hydropower in Port Alsworth. 1.COST AND BENEFIT SUMARY Include a summary of grant request and your project’s total costs and benefits below. 1.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) Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $159,000 2.7.2 Cash match to be provided $ 2.7.3 In-kind match to be provided $10,000 2.7.4 Other grant funds to be provided $ 2.7.5 Other grant applications not yet approved $ Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 4 of 23 7/1/2013 2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4)$ Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $7,224,213 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects. $ 2.7.9 Estimated Direct Financial Benefit (Savings)$10,914,652 2.7.10 Other Public Benefit If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in Section 5 below. SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 5 of 23 7/1/2013 The Port Alsworth Improvement Corporation (PAIC) is a 501(c)(3) established for the purpose of improving Port Alsworth for the beneﬁt and well-being of the community members and visitors of Port Alsworth. This includes small projects and activities such as donating yearly to the TOPS scholarship for Port Alsworth high school graduates, organizing and donating to New Year’s ﬁreworks displays, and providing supplies for community gatherings and potlucks. Since 1990, PAIC has completed many advantageous projects and activities for the community and its visitors. Larger projects undertaken by PAIC have beneﬁted the community in various ways. In 2010, PAIC was awarded $225,000 in grants to pay for a road grader for community road and trail improvements. This provided safety and access for the community members and visitors of Port Alsworth. In 2011, PAIC completed a construction project on the PAIC Community Center that included heated storage space for the road grader and emergency services equipment, as well as a space for Port Alsworth’s local Post Ofﬁce. This beneﬁted the community in several ways. It means our equipment is useable during the long cold winter months and it provides a place for our US Post Ofﬁce that would not other wise be available. In addition, income generated from the USPS lease provides PAIC with sustainability and the money to maintain and heat the PAIC Community Center. For over 22 years, PAIC has accomplished many projects that have improved the quality of life for Port Alsworth community members. PAIC will oversee the pre-construction phase of the proposed hydroelectric project from inception to completion. PAIC is served by an elected board of 7 community members. We are an independent and industrious community, and many of our board members and our administrative staff are small business owners. PAIC has a proven track record of efﬁciently completing beneﬁcial projects for the community. Mark Lang, PAIC’s administrator, has been successfully overseeing projects for the community of Port Alsworth for 6 years. Working closely with Mark, PAIC’s administrative assistant, Beth Hill, will oversee much of the project. (Please see attached resume for Beth Hill.) With the support of the community, PAIC strongly feels that we are qualiﬁed to complete the pre-construction phase of a hydroelectric project for the community of Port Alsworth. 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 6 of 23 7/1/2013 Please fill out form provided below. You may add additional rows as needed. Milestones Tasks Start Date End Date 1 Data Collection and Mapping 7/2014 7/2015 2 Resource and Economic Assessment 10/2014 9/2015 3 Preliminary Feasibility Report 10/2014 9/2015 3.3 Project Resources Describe the personnel, contractors, accounting or bookkeeping personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 7 of 23 7/1/2013 PAIC plans to hire HATCH, a hydro engineering ﬁrm to perform the reconnaissance, data collection, assessment, and feasibility of the proposed project(s). Daniel Hertrich of HATCH has been working with PAIC since May of 2013 on the reconnaissance of a proposed hydroelectric facility at the Tanalian Falls. Daniel Hertrich is the senior hydro engineer for HATCH and he has already produced a reconnaissance study and report for PAIC on the falls portion of this project. (Please see attached report from HATCH.) He is familiar with our community’s current power system and needs as well as the proposed project area. We would like to continue working with HATCH to contract the remainder of the proposed project and feel that they are qualiﬁed and reliable. In the event that HATCH is unable to perform these services we will seek another qualiﬁed contractor. In addition, PAIC will work closely with Tanalian Electric Cooperative (TEC) on this project. Tanalian Electric Cooperative is Port Alsworth’s community owned electric utility. Managed by Mark Lang, TEC has provided the community of Port Alsworth with affordable and reliable electrical rates for 22 years. TEC and PAIC have been working closely over the last year to upgrade Port Alsworth’s generators and bulk fuel system in a cooperative agreement to keep prices affordable for our residents. Incorporating renewable energy into the proposed system will ensure that TEC continues to provide the town with reliable and affordable electric rates. 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. PAIC has regularly scheduled monthly meetings at which project updates occur. It is PAIC’s standard practice to remain in regular contact with any contractors they have hired. Beth Hill will perform these duties and will report to the PAIC board members monthly on any progress or updates. Any updates deemed necessary or required by AEA will be given by Beth Hill, Mark Lang or a PAIC board member, and we will work together to ensure that we are available to the AEA for contact during the project timeline. 3.5 Project Risk Discuss potential problems and how you would address them. At this phase of the project we predict no potential problems. Conversations with the National Park Service conﬁrm that we are not in need of permits for reconnaissance or feasibility studies of the proposed projects. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 8 of 23 7/1/2013 SECTION 4 – PROJECT DESCRIPTION AND TASKS •The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. •If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application. Please see the attached Field Reconnaissance report from HATCH in May of 2013. The report is for reconnaissance of hydropower at the Tanalian waterfalls. Due to land use designations and constraints, PAIC would like to include a reconnaissance and feasibility study of the hydro kinetic energy potential for in-river of the Tanalian River. Although it is estimated that this project will generate fewer kW than the proposed falls project, we feel that this project may have greater community and National Park Service support. 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. Our current power system consists of two 150kW diesel generators placed in service within the last 3 years, and controlled by analog switchgear purchased in 1991. This is backed-up with a 185kW emergency diesel generator purchased in 1995. Data shows an average efﬁciency of 11kW produced per gallon. The average load demand on the system is 110kW and during the summer months usage often peaks around 200kW. 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. All power generation for Port Alsworth is from diesel generators, and all fuel is ﬂown in via large aircraft. Aging aircraft and unreliable weather can often create delays in shipments and fuel shortages can be a concern. If hydro power is a viable option, this project has the potential to decrease Port Alsworth’s reliance on diesel fuel. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 9 of 23 7/1/2013 From 2000 to 2010, the US Census showed a 51% increase in population with a 2010 census of 150 residents. In the last 3 years we have seen an increase in growth with more residents, seasonal workers, new businesses and construction. It is estimated that we now have 175 residents and our seasonal summer population may double this number. In the last 2 years, 11 new homes/small buildings and 6 large commercial buildings were constructed. In the next year we expect to have 5 new commercial buildings and 4 new homes built; this includes a 10,000 sq. ft. expansion on our public school. All of this in a community with little public infrastructure and a power generation system that was built 22 years ago when the population consisted of 55 residents. With more residents, seasonal workers and businesses, we are consuming larger quantities of diesel fuel and our generators are unable to meet our heavy load demands. Data for kilowatt usage shows a 33% increase in yearly power consumption over the last 5 years. Summer and fall months show the greatest difference in increased demands; such as a 48% increase in usage from May of 2009 to May of 2013. (See graphs and tables attached.) With analysis of this data and proposed construction, we predict an exponential increase in kilowatt usage for our community. With the rate that our community is growing we feel that we must take steps to provide affordable and reliable power generation for our community. This includes adequate diesel power generation as well renewable resources that will reduce our dependency on diesel fuel. If viable, the proposed hydro project will provide a reliable and renewable source of electricity for our community. This will mean less money spent on fuel and less reliance on aging aircraft to deliver the fuel. The project will reduce the amount of fuels burned therefore emitting fewer emissions into Lake Clark National Park. This project has the potential to have a broad impact on TEC’s customers through reduced electric rates, a more reliable energy source, and fewer emissions released into the environment. 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 To be determined. 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. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 10 of 23 7/1/2013 To be determined. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. •List of applicable permits •Anticipated permitting timeline •Identify and discussion of potential barriers To be determined. 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 To be determined. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: •Total anticipated project cost, and cost for this phase •Requested grant funding •Applicant matching funds – loans, capital contributions, in-kind •Identification of other funding sources •Projected capital cost of proposed renewable energy system •Projected development cost of proposed renewable energy system Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 11 of 23 7/1/2013 Based on similar projects, it is estimated that the entire project, through the construction phase, may cost $7,224,213. (Please see attached 999AEA.) For this portion of the project, HATCH has proposed a pre-construction cost of $159,000 for the reconnaissance, feasibility and conceptual design of hydroelectric power on the Tanalian River. (Please see attached expense report.) Mapping, survey and data collection is estimated at $99,000. Assessment of the data is estimated to cost $42,000 and the preliminary feasibility report will cost an estimated $18,000. PAIC has already funded transportation expenses for a reconnaissance of the proposed project and HATCH has provided a reconnaissance report in-kind. PAIC will provide administrative support for this project in-kind as needed, as well as additional transportation expenses that may exist. (Rough estimate of $10,000.) The proposed pre- construction phase will provide further detailed expense reports of the entire project and will include an estimate of operating costs as well as proposed economic beneﬁt. 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.) To be determined. 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 All electricity produced will be sold through Port Alsworth’s community-owned electric cooperative, Tanalian Electric Cooperative. The growing community of Port Alsworth will provide a steady market and all kW produced will be sold at a cost-based rate. Completion of the proposed project will provide further detail. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 12 of 23 7/1/2013 Please fill out the form provided below. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt grid, leave this section blank) i. Number of generators/boilers/other 3 generators ii. Rated capacity of generators/boilers/other 150kW/150kW/150kW iii. Generator/boilers/other type John Deere Diesel iv. Age of generators/boilers/other 2013/2011/1995 v. Efficiency of generators/boilers/other estimated at 11kW/gallon b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $30,200 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] 700,000kW ii. Fuel usage 60,000 gallons Diesel [gal] Other iii. Peak Load 200kW iv. Average Load 110kW v. Minimum Load 75kW vi. Efficiency 11kw/gallon vii. Future trends Please see attached graph showing Port Alsworth Electric Consumption. With our growing community we predict an increase in electric consumption over the next few years. Data predicts a 7.5% increase yearly. d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a)Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood or pellets [cords, green tons, dry tons] iv. Other Project Cost a) Total capital cost of new system b) Development cost c) Annual O&M cost of new system d) Annual fuel cost Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat iii. Transportation b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits Power Purchase/Sales Price a) Price for power purchase/sale Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback (years) Please fill out the form provided below. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt grid, leave this section blank) i. Number of generators/boilers/other 3 generators ii. Rated capacity of generators/boilers/other 150kW/150kW/150kW iii. Generator/boilers/other type John Deere Diesel iv. Age of generators/boilers/other 2013/2011/1995 v. Efficiency of generators/boilers/other estimated at 11kW/gallon b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $30,200 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] 700,000kW ii. Fuel usage 60,000 gallons Diesel [gal] Other iii. Peak Load 200kW iv. Average Load 110kW v. Minimum Load 75kW vi. Efficiency 11kw/gallon vii. Future trends Please see attached graph showing Port Alsworth Electric Consumption. With our growing community we predict an increase in electric consumption over the next few years. Data predicts a 7.5% increase yearly. d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a)Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood or pellets [cords, green tons, dry tons] iv. Other Project Cost a) Total capital cost of new system b) Development cost c) Annual O&M cost of new system d) Annual fuel cost Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat iii. Transportation b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits Power Purchase/Sales Price a) Price for power purchase/sale Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback (years) Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 13 of 23 7/1/2013 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. The proposed project has the potential to reduce the electrical rates for TEC’s consumers if viable. 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 To be determined. Please see the attached Trip Report for HATCH’s Tanalian Falls Hydro Reconnaissance. 5.1.1 Public Benefit for Projects with Private Sector Sales Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. Renewable energy resource availability (kWh per month) Estimated sales (kWh) Revenue for displacing diesel generation for use at privet sector businesses ($) Estimated sales (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 14 of 23 7/1/2013 SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: •Proposed business structure(s) and concepts that may be considered. •How you propose to finance the maintenance and operations for the life of the project •Identification of operational issues that could arise. •A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation •Commitment to reporting the savings and benefits To be determined. If viable, the proposed project will be managed under Tanalian Electric Cooperative (TEC). TEC has been in operation for 22 years, and has an existing financial and management system that has proven reliable. SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 15 of 23 7/1/2013 PAIC is prepared to comply with all terms of this grant award. If approved, PAIC will work closely with HATCH on instigating this project. PAIC hopes to begin this project by July of 2014. If grant awards are not distributed at this time, PAIC is prepared to forward funds for the start of the project. PAIC will comply with AEA’s grant contract and all work completed prior to award dispersement will be pre-approved with AEA. PAIC and HATCH have already funded a reconnaissance of Tanalian Falls hydro power for this project. No other grants have been awarded. 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. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 16 of 23 7/1/2013 Please see attached letter of support from Tanalian Electric Cooperative and the National Park Service (NPS) (note that conversations with the NPS support this letter and an updated version is pending). We feel that it is vital that we explore hydro at the falls and hydro kinetic along the river. Conversations with the NPS do not support a hydropower plant within the Wilderness Boundaries of Lake Clark National Park at the Tanalian waterfall. However, conversations and a letter dated from 2008 from then Superintendent Joel Hard support the potential for hydro kinetic power along the lower portion of the Tanalian River. A proposed road and bridge along this section of the river may make the project more economically feasible. We predict that the community will have some opposition to the falls project due to its value in the tourism industry, although some community members may be in full support of the project due to its potential for kW generation and diesel fuel displacement. With the high potential for kW generation and recent Federal Lands use re-designations for similar projects, we feel that it is worth continued exploration of hydropower at the Tanalian Falls. PAIC plans to maintain open communication with the community and will work with all parties to ensure that everyone is in agreement of the ﬁnal outcome. 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 PAIC is seeking a total of $159,000 in grant funds, all from the AEA Renewable Energy Fund Round VII. PAIC has funded a reconnaissance of hydropower at the Tanalian Falls and will continue to fund administrative support for the project. 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. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 17 of 23 7/1/2013 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 18 of 23 7/1/2013 Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final Design and Permitting, and IV. Construction and Commissioning). Please use the tables provided below to detail your proposed project’s budget. Be sure to use one table for each phase of your project. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA at 907-771-3031 or by emailing the Grant Administrator, Shawn Calfa, at scalfa@aidea.org. Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/ Federal Grants/Other State Grants/ Other TOTALS Reconnaissance $$$ Imagery/Topography 7/2015 $24,000 $$24,000 Property/Infrastructure 7/2015 $9,000 $$9,000 River Survey 7/2015 $43,000 $$43,000 Flow/Velocity Mapping 7/2015 $23,000 $$23,000 $$$ $$$ $$$ $$$ $$$ $$$ $$$ TOTALS $99,000 $$99,000 Budget Categories:Budget Categories: Direct Labor & Benefits $45,000 $$45,000 Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $54,000 $$54,000 Construction Services $$$ Other $$$ TOTALS $99,000 $$99,000 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 19 of 23 7/1/2013 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/ Federal Grants/Other State Grants/ Other TOTALS Feasibility/Conceptual Design $$$ Equipment Selection 9/2015 $12,000 $$12,000 Concept Designs 9/2015 $18,000 $$18,000 Economic Assessment 9/2015 $12,000 $$12,000 Preliminary Feasibility Report 9/2015 $18,000 $$18,000 $$$ $$$ $$$ $$$ $$$ $$$ $$$ TOTALS $60,000 $$60,000 Budget Categories:Budget Categories: Direct Labor & Benefits $60,000 $$60,000 Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $$$ Construction Services $$$ Other $$$ TOTALS $60,000 $$60,000 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 20 of 23 7/1/2013 Project Milestones that should be addressed in Budget Proposal Reconnaissance Feasibility Design and Permitting Construction 1. Project scoping and contractor solicitation. 2. Resource identification and analysis 3. Land use, permitting, and environmental analysis 4. Preliminary design analysis and cost 5. Cost of energy and market analysis 6. Simple economic analysis 7. Final report and recommendations 1. Project scoping and contractor solicitation. 2. Detailed energy resource analysis 3. Identification of land and regulatory issues, 4. Permitting and environmental analysis 5. Detailed analysis of existing and future energy costs and markets 6. Assessment of alternatives 7. Conceptual design analysis and cost estimate 8. Detailed economic and financial analysis 9, Conceptual business and operations plans 10. Final report and recommendations 1. Project scoping and contractor solicitation for planning and design 2. Permit applications (as needed) 3. Final environmental assessment and mitigation plans (as needed) 4. Resolution of land use, right of way issues 5. Permit approvals 6. Final system design 7. Engineers cost estimate 8. Updated economic and financial analysis 9. Negotiated power sales agreements with approved rates 10. Final business and operational plan 1. Confirmation that all design and feasibility requirements are complete. 2. Completion of bid documents 3. Contractor/vendor selection and award 4. Construction Phases – Each project will have unique construction phases, limitations, and schedule constraints which should be identified by the grantee 5. Integration and testing 6. Decommissioning old systems 7. Final Acceptance, Commissioning and Start-up 8. Operations Reporting Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 21 of 23 7/1/2013 SECTION 10 – AUTHORIZED SIGNERS FORM Community/Grantee Name: Port Alsworth Improvement CorporationCommunity/Grantee Name: Port Alsworth Improvement Corporation Regular Election is held: Yearly Date: September 20, 2013 Authorized Grant Signer(s): Printed Name Title Term Signature Glen Alsworth, JR President Seth Kroenke Vice President Mark Lang Administrator Beth Hill Administrative Assistant I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Glen Alsworth, JR President, PAIC Grantee Contact Information: Mailing Address: P.O. Box 9998 Port Alsworth, AK 99653 Phone Number:(907)781-3033 Fax Number: E-mail Address:beth4snow@gmail.com Federal Tax ID #:94-3137666 Please submit an updated form whenever there is a change to the above information. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 22 of 23 7/1/2013 SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project web site. B. Letters or resolutions demonstrating local support per application form Section 8. C. For heat projects only: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that: -Commits the organization to provide the matching resources for project at the match amounts indicated in the application. -Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. -Provides as point of contact to represent the applicant for purposes of this application. -Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. An electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. 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 Beth Hill Signature Title Administrative Assistant Date September 21, 2013 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 23 of 23 7/1/2013