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HomeMy WebLinkAboutAEA Round VII Grant Application with Attachments - SEAPA Wind Resource AssessmentRenewable Energy Fund Round VII Grant Application -Standard Form Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round VII of the Renewable Energy Fund. A separate application form is available for projects with a primary purpose of producing heat (see RFA section 1.5). This is the standard form for all other projects, including projects that will produce heat and electricity . An electronic version of the Request for Applications (RFA) and both application forms is available online at: http://www.akenergyauthority .org/REFund7 .html . • If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at scalfa@aidea.org . · • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for each phase of the project. • In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 ACC 1 07 .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 9ufficient 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 t heir 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. AEA 2014-006 Application Page 1 of 22 7/2/2013 Renewable Energy Fund Round VII Grant Application - Standard Form SECTION 1-APPLICANT INFORMATION Name (Name of utility, IPP, or government enti ty submitting proposal) The Southeast Alaska Power Agency ('SEAPA') Type of Entity: Joint Action Agency Fiscal Year End: June 30 Tax ID #92-01746698 Tax Status: __ For-profit Date of last financial statement audit: June 30, 2012 X Mailing Address Physical Address Non-profit _Government (check one) 1900 First Avenue, Suite 318 Same as Mailing Ketchikan, Alaska 99901 Telephone Fax Email (907) 228-2281 (907) 225-2287 sthompson@.seapahydro.ora 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@seapahydro.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 httg://www. akenergyauthority. org/veeg/Grant-T emglate . gdf. (Any exceptions should be clearly noted and submitted with the application.) - AEA 2014-006 Grant Application Page 2 of 22 71112013 Grant Application -Standard 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. SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title -(Provide a ~ to word title your project). Type in space below. SEAPA Wind Resource Assessment (Phases! & II) 2.2 Project location- fnclude 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. Applicant accepted delivery of a 34=meter meteorological tower ('Met Tower') from the Alaska Energy Authority in July 2013 and seeks to conduct a reconnaissance and feasibility analysis for placement of the Met Tower along transmission line paths owned by SEAPA, which extend from the City of Ketchikan, Alaska, located on the westem coast of Revillagegedo Island, near the southernmost boundary of Alaska, to the Petersburg Borough, located on the north end of Mitkof Island in Southeast Alaska. Community benefiting-Name(s) of the community or communities that will be the beneficiaries of the project. The project is proposed to determine if it is feasible to use wind power to supplement the energy needs and displace diesel generation for the communities serviced by SEAPA, which include Ketchikan, Petersburg, and Wrangell, with the long~term objective and goal of serving the power needs of additional communities, including Kake. 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) this Request (Check all that apply) Pre-Construction --r Construction X Reconnaissance Final Design and Permitting X Feasibility and Conceptual Design Construction and Commissioning I AEA 2014-006 Grant Apphcatmn Page 3 of 22 7/1/2013 nd ication -Standard 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. Applicant accepted delivery of a 34-meter meteorological tower ('Met Tower') from the Alaska Energy Authority in July 2013 and seeks to conduct a reconnaissance and feasibility analysis to determine if it is feasible to use wind power to supplement the energy needs and displace diesel for the communities serviced by SEAPA. After the site assessment has determined the most suitable site for collection of raw wind data, the MET Tower will be installed to gather two (2) years of wind data for a thorough analysis. An analysis of the wind data and a final report will be performed by a qualified consultant specializing in the field. 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, focal jobs created, etc.) The proposed project phases will provide the information required to carry out the next steps of a wind tmbine project to determine whether the wind resources are suited for integration into SEAPA's existing transmission system to provide supplemental power and displace diesel generation for the communities of Ketchikan, Petersburg, and Wrangell. SEAPA recognizes that additional interties may be built to serve communities, including Kake, and additional generation resources will be required to serve those loads. A feasibility study will be necessary to determine if viable wind resources are present along the existing SEAPA transmission corridor. If wind resources are determined by the study to be adequate and at locations where the construction and maintenance of wind turbines are feasible, the following benefits may be realized: ., Displaces diesel generation ., Reduces carbon emissions ® Adds energy in winter months when it is most needed " Provides energy source diversification * Provides a bridge solution to meet near-term generation needs, allowing more time ti develop the next increment of hydro • Increased awareness for residents of the communities currently being served, and future communities that may be served, with a greater understanding of whether wind generation can play a role in providing renewable energy within the SEAPA region and the extent of this role • The State of Alaska benefits from wind resource information obtained for the Southeast Alaska region 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. Phase 1: SEAPA requests funding of $37,511 with a 5% cash match of $1,974, and in-kind contribution of $2,456 from SEAPA for a total cost of $41,941 for Phase I of its project. Phase II: SEAPA requests funding of $121,260 with a 5% cash match of $6,382, and in-kind contribution of $1,000 from SEAPA for a total cost of $128,642 for Phase II of this project AEA 2014-006 Grant Renewable Fu Round VII Grant ication -Standard Form Project Phase Requested Grant Fundin I $37,511 II $121,260 Totals $158,771 Contribution $2,456* $1,000** $3,456 *storage fees from 711112013-1010112014 for housing MET Tower@ $156/mo. **SEAPA administrative fees Totals $41,941 $128,642 SEAPA's in-kind contributions to the project are estimated at $3,456, which include storage fees to house the tower and administrative oversight of the project. To further support the SEAPA team in project delivery, a qualified consultant will be selected. The bulk of the analysis effort and some of the project management at the task level will be provided by the consultant Total cost of this project, which includes SEAPA's 5% cash match and in-kind contribution is $170,583. 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 $158,771 2.7.2 Cash match to be provided $ 8,356 2.7.3 In-kind match to be provided $ 3,456 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) $ 70,583 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 $170,583 4.4.4, including estimates through construction. 2.7.8 Additional Performance Monitoring Equipment not covered $ (N/A) by the project but required for the Grant Only applicable to construction phase projects. 2.7.9 Estimated Direct Financial Benefit (Savings) $ (to be determined) 2.7.10 Other Public Benefit If you can calculate the benefit in terms $ (to be determined) of dollars please provide that number here and explain how you calculated that number in Section 5 below Note: This grant application is for a wind resource assessment and therefore estimations of any future wind generation is inappropriate. AEA 2014-006 Grant ble Fund nd Grant Application -Standard Form SECTION 3-PROJECT MANAGEMENT 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. SEAPA would provide overall project management and oversight. To further support the SEAPA team in project delivery, a qualified consultant who specializes in the field would be selected. The bulk of the analysis effort and some of the project management at the task level would be provided by the consultant. 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 reiicensing mitigation, forward production and cost estimates, and system operations. Mr. Wolfe's resume is included with this application in Attachment A 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 proposed _groject Please fill out fonn provided below. You may add additional rows as needed. Phase I Milestones Tasks Start Date End Date Acceptance of Delivery of MET Arrange storage for MET Tower until 07/11/2013 11/01/2014 Tower by SEAPA installation Project Scoping and Consultant Develop and issue RFP for bids 07/2014 08/15/2014 Solicitation Site Assessment Preparation Review GIS shapefiles, existing transmission and Reconnaissance right-of-ways, aerial photographs, contours/elevations, and additional wind data 09/01/2014 09/15/2014 that may be available in SEAPA's grid to determine placement of MET Tower Permitting After suitable location for MET Tower is identified, determine whether SF-299 form needed if site is on federal lands; conduct research to determine if permit approvals required on State lands; review SEAPA's existing Special Use Permit & Easements if suitable location is identified within an 09/15/2014 10/31/2014 existing transmission ROW or FERC boundary associated with SEAPA's hydro facilities. Determine whether NEPA process is required for installation of the tower. AEA 2014-006 Grant Application nd I Grant Application -Standard Form MET Tower Installation (Installation is weather dependent depending on site selected for instal!aUon) Wind Data Collection (two-year period) Wind Resource & Assessment Reporting 3.3 Project Resources PHASEU Determine whether brush clearing needed at site for installation; raise tower into place; calibrate and test all associated equipment. Collection, quality-control, and archival of all wind data from project site. Monitor quality and status of collected data; equipment failures to be flagged and identified through secure web portal to reduce data loss; data quality controlled and brief report produced to summarize data collected on a regular basis, subject to weather restrictions. Complete wind resource assessment to be performed including review of meteorological program, analysis of wind resource characteristics, climate adjustment, extrapolation to hub height, estimation of wind resource uncertainty. Provide comprehensive wind resource report for on- site MET Tower, to include detailed description of the wind resource assessment and uncertainties (detailed tables and charts summarizing meteorological data to be included) 11/01/2014 11/07/2014 11/07/2015 11/07/2017 11/07/2017 11/14/2017 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 primary personnel for both phases of this project will be consultants with previous wind power experience, who are familiar with SEAPA's transmission line path and the Southeast Alaska area in general, and have the resources available to conduct a wind site assessment, analysis of the permitting and any environmental studies that will be required, installation of the MET Tower, collection of raw data, and analysis of the data to prepare a wind assessment report. SEAPA staff will team up with these consultants through all phases to see the project through to completion. SEAPA staff and their role in the project include: J;> Trey Acteson, Chief Executive Officer, would act as Project Executive and will maintain ultimate authority programmatically and financially. J;> 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 the installation of the MET Tower and permitting requirements. );.> Steve Henson, Operations Manager, would provide technical assistance and information on the existing transmission line paths, possible issues, and accessibility for the wind site assessment );.> 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, an·o:mge travel to project site, effect communications with consultant, and assist Controller in tracking project activities for grant reporting. The resumes of Tr cteson and Eric Wolfe are included in Attachment A to this application. AEA 2014-006 Grant Application Page 7 of 22 7/1/2013 Renewable Energy Fund Round VII 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's project manager will communicate with consultant to effect milestones during both phases of the project. SEAPA's Project Manager and Operations Manager will travel with consultant to oversee installation of the MET Tower. Consultant will collect wind data for 24 months and provide regular summary reports to SEAPA, which will be available for download 15 days after the close of each month. Reports will include wind speed and shear averages at the primary monitoring level, wind speed averages at all other monitoring levels, wind speed extremes and standard deviations at the primary monitoring level, time and energy-weighted wind direction rose, and plots of daily average speeds and diurnal variation. Authority will be informed of the status via project progress reports to be submitted to the Authority in accordance with AEA · guidelines. Alternative contact person: Sharon Thompson, Executive Assistant, Southeast Alaska Power Agency, 1900 First Avenue, Suite 318, Ketchikan, Alaska 99901; Ph. (907) 228-2281; Email sthompson@seapahydro.org . 3.5 Project Risk Discuss potential problems and how you would address them. Remote areas in Southeast Alaska may present problems in project logistics and placement of the MET Tower. Adverse weather could also cause project delays; however, an experienced consultant/contractor, familiar with Alaska weather conditions, would be selected. Good team planning and reliance on local knowledge about conditions along SEAPA's transmission line would help mitigate any risks. Any environmental permitting issues would be mitigated by hiring an environmental consultant familiar with permitting wind projects in Alaska . Early consultations with agencies would occur in order to flesh out location, avian concerns, including specific species, and mitigation issues. The consultant would work openly with agencies and conduct studies as appropriate. Although we believe a MET Tower is a minimal environmental risk, the consultant would determine whether any National Environmental Policy Act (NEPA) documentation will be required. 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. For a wind project to be successful there is a clear need to ensure that an adequate wind resource is available. Indicators of success include the use of reliable turbines, a high wind class, and favorable environmental conditions. It is critical to have a full and detailed wind site assessment for AEA 2014-006 Grant Application Page 8 of 22 7/1/2013 Renewable Energy Fund Round VII Grant Application -Standard Form placement of the MET Tower to determine whether a strong wind resource is available to produce a high capacity factor to meet expectations. The windy, rainy climate of Southeast Alaska is strongly influenced by the Pacific Ocean and coastal mountains. It is prudent to conduct a wind assessment along SEAPA's transmission line corridor to flesh out untapped wind resources that have not been previously studied. The quality of the wind resource will be analyzed to ensure that it is compatible with wind generation development. While wind resources in Southeast Alaska conducive to generation may or may not be present, the synergistic relationship of wind generation with existing hydro is enticing. Hydro can pick up the load when wind falters and the wind energy contributes by allowing the hydro plants to conserve water by not operating when wind energy is available. Kodiak Electric Association installed wind turbines to supplement their existing hydro from Terror Lake and this project has been remarkably successful. While development of wind and hydro are 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 would take years pending the permitting process. No geotechnical drilling to determine whether geothermal resources are present at that site has yet been undertaken. 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. 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 Unit 2 Tyee Lake Plant Unit 1 Unit 2 Ketchikan Plant Unit 3 Unit4 Unit 5 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 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 AEA 2014-006 Grant Application Page 9 of 22 Average Hydro Enerav (MWh) 76,000 MWh 120,000 MWh 22,500 MWh 7/1/2013 Energy Rou Grant Application -Standard Silvis Plant Francis 1967 2.1 MW 12,800 MWh Beaver Falls Plant 5MW 43,400 MWh Unit 1 Pelton 1946 (1904) 1MW Unit 3 Pelton 1954 2MW Unit4 Pelton 1954 2MW KPU DIESEl Bailey Power Plant 23MW Unit 1 Diesel 1969 3.5MW Unit2 Diesel 1969 3.5MW Unit 3 Diesel 1976 5.5MW Unit4 Diesel 1998 10.5 MW North Point Higgins 3.2MW CAT 1 Diesel 2005 1.6MW CAT 1 Diesel 2005 1.6MW PETERSBURG MUNICIPAL POWER & LIGHT (PMP&L) HYDRO Blind Slough Hydro Pelton 1955* 1.75 MW 13,000 MWh (*In 1982, a new stainless steel runner was installed on Pelton wheel) PMP&L Diesel 11.8 MW Unit 1 Diesel 1965 1,200 kW Unit2 Diesel 1979 580 kW Unit 3 Diesel 1979 680 kW Unit4 Diesel 1972 2.1 MW Unit 5 Diesel 1994 2.5MW Unit6 Diesel 2000 2.5MW Unit 7 Diesel 2012 2.25 MW WRANGELL MUNICIPAL LIGHT & POWER (WML&P) WML&P Diesel 8.5MW Unit 2 Diesel 2001 2.0MW Unit 3 Diesel 2003 2.0MW Unit 4 Diesel 2002 2.0MW Unit 5 Diesel 1982 2.5MW SEAPA's existing energy resources include the Swan Lake and Tyee Lake Hydroelectric Projects. With the completion of an intertie in late 2009, Ketchikan, Wrangell, and Petersburg are interconnected with a SEAPA=owned transmission system. Power from the Swan and Tyee projects are delivered to the three communities pursuant to a Long-Term Power Sales Agreement. Ketchikan Public Utilities (KPU) owns and operates the Ketchikan Lakes, Beaver Falls, and Silvis Lakes Hydro Projects. KPU maintains four peaking/standby diesel generators at its Bailey Powerhouse and two other diesel generators at its North Point Higgins Substation. The diesel generators provide power to the community in times of low reservoir levels, hydro maintenance periods, and for emergency use during outages. Petersburg Municipal Power & Light owns the Blind Slough Hydroelectric Project and also has seven back-up diesel generation units; Wrangell Municipal Light & Power has four back-up diesel units. The anticipated effect of wind power would be less use of diesel fuel for electrical power generation during energy and capacity shortfalls. 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.