HomeMy WebLinkAboutAEA Round VII Grant Application - SEAPA Swan Lake Reservoir Expansion ProjectRenewable Energy Fund Round VII
Grant Application -Standard Form
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round VII of the Renewable Energy Fund. A separate application form is available for
projects with a primary purpose of producing heat (see RFA section 1.5). This is the standard
form for all other projects, including projects that will produce heat and electricity . An electronic
version of the Request for Applications (RFA) and both application forms is available online at:
http://www.akenergyauthority.org/REFund7 .html .
• If you need technical assistance filling out this application, please contact Shawn Calfa,
the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at
sca lfa@a idea .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 prov ide 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 add itional sheets if needed .
REMINDER :
• Alaska Energy Authority is subject to the Public Records Act AS 40.25 , and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
• All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
• In accordance with 3 AAC 107 .630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application .
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40 .25 or returned to the applicant upon
request.
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Renewable Energy Fund Round VII
Grant Application -Standard Form
SECTION 1-APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
The Southeast Alaska Power Agency ('SEAPA')
Type of Entity: Joint Action Agency Fiscal Year End: June 30
Tax ID #92-017 46698 Tax Status: __ For-profit ~ Non-profit _Government ( check one)
Date of last financial statement audit: June 30, 2012
Mailing Address Physical Address
1900 First Avenue, Suite 318 Same as Mailing
Ketchikan, Alaska 99901
Telephone Fax Email
(907) 228-2281 (907) 225-2287 sthompson~seapahvdro.org
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
Name Title
Trey Acteson Chief Executive Officer
Mailing Address
1900 First Avenue, Suite 318, Ketchikan, Alaska 99901
Telephone Fax Email
(907) 228-2281 (907) 225-2287 tacteson@seapahvdro.org
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
X A governmental entity (which includes tribal councils and housing authorities);
Yes 1.2.2 Attached to this application is formal approval and endorsement for the project by
the applicant's board of directors, executive management, or other governing
authority. If the applicant is a collaborative grouping, a formal approval from each
participant's governing authority is necessary . (Indicate Yes or No in the box)
Yes 1.2.3 As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement (Section 3 of the RFA).
Yes 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
htt12://www . akenergyauthority . org/vee12/G rant-T em12late .12df . (Any exceptions
should be clearly noted and submitted with the application.)
Yes 1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public . If no please describe the nature of the
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Grant Application -Standard Form
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.
2.1 Project Title-(Provide a 4 to 7 word title for your project). Type in space below.
Swan Lake Reservoir Expansion Project
2.2 Project Location -
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project in the subsections below.
2.2.1 Location of Project-Latitude and longitude, street address, or community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project's location on the map
and then right clicking with the mouse and selecting "What is here? The coordinates will be displayed in the Google
search window above the map in a format as follows : 61 .195676.-149.898663. If you would like assistance obtaining
this information please contact AEA at 907-771-3031.
The project is located in a remote area of Revillagigedo Island at the northern end of Carroll Inlet,
approximately 22 air miles northeast of Ketchikan, Alaska. The project occupies Sections 11, 12,
13, 14, 15, 20, 21, 22, 23, and 27, Township 29 North, Range 91 East, Copper River Meridian.
2.2.2 Community benefiting-Name(s) of the community or communities that will be the
beneficiaries of the project.
The project enhances the storage capacity of the Swan Lake Dam benefiting the communities of
Petersburg, Wrangell, and Ketchikan; additional storage will add operational flexibility that
benefits the entire region and also provides additional storage for non-dispatchable sources such
as wind or run-of-the-river hydro, which could be potential future projects. One hundred percent
of the energy produced as a result of enhancing the storage capacity will be for the public benefit.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels (excluding heat-only)
X Hydro, Including Run of River Hydrokinetic
Geothermal, Excluding Heat Pumps Transmission of Renewable Energy
Solar Photovoltaic Storage of Renewable
Other (Describe) Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
Reconnaissance X Final Design and Permitting
Feasibility and Conceptual Design X Construction and Commissioning
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Grant Application-Standard Form
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
Swan Lake is currently comprised of a concrete arch dam, 174' high and 430' long at its crest,
which is located approximately % mile downstream from the mouth of the original Swan Lake.
SEAPA proposes a 15-foot lake raise, and a new reservoir level of 345 feet, raising the crest of the
dam to 350 feet. SEAPA would install a 15-foot high Obermeyer gate system as shown below in
the existing spillway to achieve the new maximum normal operating pool level of 345 feet. The
intake structure would need to be raised to contain the maximum operating pool of 345 feet. This
would require raising the concrete intake structure, relocating the gate hoist equipment, and
increasing the gate lift shaft.
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, local jobs created, etc.)
SEAPA has conducted preliminary engineering, license amendment, and system integration
studies in the pursuit of expanding the Swan Lake reservoir. After one-and-a-half years of effort
at an expense to SEAPA of funds totaling $619,000 to date, SEAPA continues to promote
expansion of the reservoir. A detailed Costs and Benefits Analysis (Attachment A) determined
that raising the dam face height 15 feet will result in the best return on investment. It will add 25%
additional storage for winter hydro generation, displacing up to 12,000 MWhrs of diesel generation
annually. For the remainder of SEAPA's fiscal year (October 2013 to June 30, 2014) SEAPA
intends to submit an application to the Federal Energy Regulatory Commission (FERC) to amend
the Swan Lake license and also plans to complete a 30% design document. Both of these tasks
will be funded by the storage initiative portion ($578,000) of a 2012 legislative appropriation of
$3,000,000 received by SEAPA from the Department of Commerce, Community and Economic
Development (DCCED). The subsequent cost to complete final design, permitting, construction
and commissioning as reflected in the following table is $12,330,519.
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Grant Application -Standard Form
Project Costs 2011 -2013 2014 2012
Feasibility, License
Consulting, $389,000 $94,350
Environmental Studies
Amendment Costs
(Timber Harvest, 4e $557,000
Constraints, etc.)
Construction Eng & PM $458,350 $739,611
Total $389,000 $672,350 $1,296,611
Escalation $0 $0 $132,903
Project Grand Total $389,000 $672,350 $1,429,514
Funding 2011 -2013 2014 2012
SEAPA Funds $389,000 $94,350
DCCED Grant Funds $578,000
Remaining
Construction & $1,429,514 Engineering Funds
Needed
Total Requested Funds
Project Benefits:
2015-2016 Total
$483,350
$557,000
$9,416,698 $10,614,659
$9,416,698 $11,774,659
$1,484,307 $1,617,210
$10 ,901,005 $13,391,869
2015-2016 Total
$483,350
$578,000
$10,901,005 $12,330,519
$12,330,519
• Directly contributes to increasing regional hydro storage capacity, which was identified as
a priority in the Southeast Alaska Integrated Resource Plan (SEIRP)
• Displaces up to 12,000 MWhrs of winter diesel generation, which equates to a reduction of
800,000 gallons of diesel fuel annually
• Benefits all three interconnected member utility communities (Petersburg, Wrangell, and
Ketchikan) by providing additional storage capacity and greater operational flexibility,
maximizing use of regional hydro resources
• Compliments the new Whitman Hydroelectric Project, which has minimal storage (project
would be fully operational by 2016 and will shift summer spill that would have occurred at
the Whitman hydro facility to much needed winter hydro generation)
• Provides additional capacity to accommodate residential space heating conversions
• Reduces potential energy lost due to reservoir spill occurring most years
• Provides additional storage for future longer term projects
• Maximizes value of an existing hydro project
• Timing of project is consistent with predicted load growth
• Local jobs during construction
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Grant Application-Standard Form
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project.
The total cost of the project is estimated at $13,391,869. Funding of $12,330,519 is needed for
completion. In the State's 2012 legislative session, an appropriation of $3,000,000 was awarded to
SEAPA by the Department of Commerce, Community and Economic Development, of which
$578,000 will be reimbursed to fund permitting and engineering costs for this project. This
reimbursement will occur during SEAPA's Fiscal Year 2014 or 2015. SEAPA has invested one-
and-a-half years of effort and $483,350 to date into the project. According to Section 1.5 of the
RFA from this Round VII of the AEA's Renewable Energy Fund Program, applicant is eligible to
request a grant funding limit of $4,000,000, which is the amount requested in this application. The
balance of $8,330,519 is SEAPA's anticipated cash match for completion of the project; however,
SEAPA will continue to pursue other funding opportunities.
2.7 COST AND BENEFIT SUMMARY
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 $4,000,000
2.7.2 Cash match to be provided *includes $483 ,350 spent to date $8,813,869*
2.7.3 In-kind match to be provided $
2.7.4 Other grant funds to be provided *DCC ED approved grant funds $578,000*
2.7.5 Other grant applications not yet approved $
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $13,391 ,869
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 $13,391,869
4.4.4, including estimates through construction.
2.7.8 Additional Performance Monitoring Equipment not covered $ (NIA)
by the project but required for the Grant Only applicable to
construction phase projects.
2.7.9 Estimated Direct Financial Benefit (Savings) $2,752,000*
2.7.10 Other Public Benefit If you can calculate the benefit in terms $2,752,000*
of dollars please provide that number here and explain how you
calculated that number in Section 5 below.
*Value of annual displaced diesel based on Ketchikan Public Utilities (KPU) diesel
generation for FY 2013 (11 ,646 MWhrs = 776,399 gal/diesel = $2,670,813). Maximum benefit
12,000 MWhrs = 800,000 gal/diesel displaced annually= $2,752,000. See, also, Attachment A
-Costs and Benefits Analysis for Increasing Storage at Swan Lake.
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.
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Grant Application -Standard Form
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.
Eric Wolfe, a SEAPA employee, and current Director of Special Projects, will be the Project
Manager. Mr. Wolfe has 25 years of utility engineering and management experience. Mr. Wolfe
has advised utilities on: hydro turbine and hydroelectric plant sizing, lost revenue effects
resulting from relicensing mitigation, forward production and cost estimates, and system
operations. Mr. Wolfe's resume is included with this application in Attachment B hereto.
3.2 Project Schedule and Milestones
Please fill out the schedule below. Be sure to identify key tasks and decision points 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 _p_roposed _groject.
Please fill out form provided below. You may add additional rows as needed.
Phase Ill (Final Design & Permitting)
Milestones Tasks Start Date End Date
Project Administration & Management Tasks same as Milestones 04/14/2014 10/24/2014
FERC-SEAPA Board of Consultant's
Coordination 04/14/2014 01/19/2015
Data Collection Site Visit 04/21/2014 04/24/2014
Design Criteria Technical Memo 05/05/2014 05/20/2014
Geotechnical Engineering 04/21/2014 10/06/2014
Engineering Design Report 07/07/2014 09/28/2014
Cost Estimate and Construction
Schedule 07/31/2014 10/14/2014
Preliminary Design Report 07/14/2014 10/30/2014
Construction Permitting 07/29/2014 10/30/2014
Independent Technical Review 06/09/2014 10/30/2014
Construction Plans & Specifications 11/29/2014 02/27/2015
Design Documentation Report 11/29/2014 01/13/2015
Cost Estimates & Schedule 01/03/2015 02/02/2015
PHASE IV (Construction & Commissioning)
General Requirements Tasks same as Milestones 06/19/2015 10/08/2015
Mobilization & Man Camp 09/17/2015 10/08/2015
Site Prep Work 10/08/2015 11/22/2015
Intake Tower Modifications 01/11/2016 04/10/2016
Concrete Support Abutment 12/16/2015 02/14 .2016
Concrete Crest Raise 12/16/2015 01/25/2016
Tie to Right Abutment 01/10/2016 02/09/2016
Regrade Roadway 03/10/2016 03/22/2016
Installation of OberMeyer Gate 04/14/2016 07/13/2016
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Grant Application -Standard Form
The following documents are available to illustrate the current design and schedule of this project
on SEAPA's website at www.seapahydro.org/slhp.htm#top/ under the 'Swan Lake
Design/Construction Documents' tab:
• McMillen Engineering Report
• Preliminary Drawings
• Construction Schedule
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 .
McMillen, LLC and Tetra Tech, Inc. (resumes attached, Attachment B) have been the main
consultants to date for this project. SEAPA will contract out the work remaining in Phases Ill and
IV and will solicit a 'design-build' contractor. The primary personnel for both phases of this
project will be SEAPA staff and the design-bui l d contracto r t o be selected through a bidd i ng
process. SEAPA staff will team up with these consultants/contractors through both phases to see
the project through to completion.
Partnerships or Commitments:
~ Alaska Department of Fish & Game (ADF&G)
~ Alaska Department of Natural Resources (ADNR)
~ U.S. Forest Service (USFS)
~ U.S. Fish & Wildlife Service (USFWS)
Existing Contracts:
~ SEAPA with McMillen, LLC
~ SEAPA with Tetra Tech, Inc.
SEAPA staff and their role in the project include:
~ Trey Acteson, Chief Executive Officer, would act as Project Executive and will maintain
ultimate authority programmatically and financially.
~ Eric Wolfe, Director of Special Projects, would lead the project management team
consisting of SEAPA staff and consultants/contractors. Together with his team, Mr. Wolfe
would provide coordination of dam modifications, gate installation, and commissioning.
~ Steve Henson, Operations Manager, would provide technical assistance and information
regarding impacts to Swan Lake operations.
~ Kay Key, Controller, would provide support in accounting, payables, and financial
reporting in accordance with AEA guidelines.
~ Sharon Thompson, Executive Assistant, would prepare contract documents, arrange
travel to project site, effect communications with design-build contractor, and assist
Controller in tracking project activities for grant reporting.
The r esumes of Trey Acteson and Eric Wolfe are included in Attachment B hereto.
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Grant Application-Standard Form
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.
SEAPA intends to contract out the work for both Phases Ill and IV of this project and will require
monthly progress reports from the contractors. Monthly reports will be submitted to the AEA.
Alternative contact person is Steve Henson, Operations Manager, Southeast Alaska Power
Agency, 1900 First Avenue, Suite 318, Ketchikan, Alaska 99901; Phone (907) 228-2281, Fax (907)
225-2287, and email: shenson@seapahydro.org
3.5 Project Risk
Discuss potential problems and how you would address them.
Potential Problems Solution
Rising equipment costs Factor into total cost of project
Lead time Factor into total cost of project
Inclement weather Monitor weather conditions and adjust
schedule accordingly
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.
SEAPA provides 65% of the region's energy and 100% of the region's load following and stability
requirements. SEAPA also develops and executes the hourly, weekly, and monthly dispatch plans;
through these planning and dispatch efforts, the new additional storage would be utilized to capture
the region's short-term hydro excess (spill). Later in the winter, this excess would be used to
displace up to 12,000 MWh of diesel generation.
Other alternatives not as well defined and with lower benefit-to-cost ratio:
While development of hydro is ongoing, another plausible source of energy that could be developed
is geothermal; however, the closest source that could be tapped which is close enough to tie into
SEAPA's existing Swan-Tyee lntertie is Bell Island. Although the property is currently up for sale,
the owners had applied for three geothermal leases which were pending a consent determination
from the BLM for issuance. Actual development of geothermal could take years pending the
permitting process. No geotechnical drilling to determine whether geothermal resources are
present at that site has yet been undertaken.
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Grant Application -Standard Form
As discussed in the AEA's Renewable Energy Atlas of Alaska, significant utility-scale solar
generation is unlikely in Alaska due to high capital costs and low annual solar power output.
While biomass used for heating is an exciting and welcomed technology in the SEAPA region, the
production of power from biomass is questionable due to a myriad of issues including
environmental and supply-side concerns. A careful look at the biomass energy pros and cons
reveals that it is far from the perfect energy source, but is still very promising as a replacement for
the fossil fuels currently in use for heating.
The following documents are available to illustrate the current design and schedule of this project
on SEAPA's website at www.seapahydro.org/slhp.htm#top/ under the 'Swan Lake
Design/Construction Documents' tab:
• McMillen Engineering Report
• Preliminary Drawings
• Construction Schedule
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.
Swan Lake Plant
Unit 1
Unit2
Tyee Lake Plant
Unit 1
Unit2
Ketchikan Plant
Unit 3
Unit4
Unit 5
Silvis Plant
Beaver Falls Plant
Unit 1
Unit 3
Unit4
Bailey Power Plant
Unit 1
Unit2
Unit 3
Unit4
North Point Higgins
CAT 1
CAT 1
EXISTING GENERATION
KETCHIKAN, PETERSBURG, AND WRANGELL
Type Year Installed MW/kw
Capacity
SEAPA HYDRO
25MW
Francis 1983 12.5 MW
Francis 1983 12.5 MW
25MW
Pelton 1984 I 12.5 MW
Pelton 1984 12.5 MW
KETCHIKAN PUBLIC UTILITIES (KPU) HYDRO
4.2MW
Francis 1923 1.4 MW
Francis 1938 1.4 MW
Francis 1957 1.4 MW
Francis 1967 2.1 MW
5MW
Pelton 1946 (1904) 1MW
Pelton 1954 2MW
Pelton 1954 2MW
KPU DIESEL
23MW
Diesel 1969 3.5MW
Diesel 1969 3.5MW
Diesel 1976 5.5MW
Diesel 1998 10 .5 MW
3.2MW
Diesel 2005 1.6MW
Diesel 2005 1.6 MW
AEA 2014-006 Grant Application Page 10 of 25
Average
Hydro Energy CMWh)
76,000 MWh
120,000 MWh
22,500 MWh
12,800 MWh
43,400 MWh
7/1/2013