HomeMy WebLinkAboutAEA 14-006 Haines Borough Excursion Inlet Hydropower ProjectRenewable Energy Fund
Round VD Grant Application
AEA 14-006
Haines Borough
Exeunion Inlet Hydropower Projeet
Feasibility &
Conceptual Design
Renewable Energy Fund Round VII
Grant A llcatlon -Standard Fonn
Application Fonns 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 fonn 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 .akenemya uthoritv . org /REF und7 . html .
• If you need technical assistance filling out this application, please contad Shawn Calfa,
the Alaska Energy Authority Grant Administrator at (907) n1-3031 or at
sca lfa @aidea .org.
• If you are applying for grants for more than one project, provide separate application
forms for each project.
• Multipfe 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 benefrt 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.
AEA 2014-008 Applfcatton Page 1 of 35 71212013
Renewable Energy Fund Round VII
G t A r tl Sta d d F ran ~ppiiC8 on· n ar onn 9I:RGY AliTHORfTY
SEcnoN 1 -APPLICANT INFORIIA110N
rum. (Name of utility, IPP, or government entity submitting proposal)
Haines Borough
Type el Entity: Home Rule Borough (llunlclpellty) FIKal y.., End June 30
Tax1Dt#470888706 Tax atatu.:_For-proftt _Non.proftt-1-Gowwnment (check one)
oat. ellat IIMnca.l ~ 8Udlt: GWO-Z012 {In I CJI-30.a1J)
...... ng Addree8 PhyU:el Add.-
POBox1209 103 Third Avenue South
Haines, AK 99827 Haines, AK 91827
T~ Fax em.u
907-768-2231 907-768-2718 dcul l ...... k.ua
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
tWne Title
Darale Culbeck Assistant to the Manager
-..ungAdd.-
POBox 1209
Haines, AK 99827
Telephone Fax Erllllll
907-788-2231 Ext. 80 907-788-2711 dculbeckflhalnes.ak.ua
1.2 APPLICANT •NIIIUM REQUIREIIENTS
Please check 88 appropriate. If you do not to meet the minimum applicant requ/t8ments, your
application wil 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 COI'N8nience and I'I8C8IIIty under AS
42 .05 , or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
X A local go~. or
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 gowming
authority . If the applicant is a collaborative grouping , a formal approval from each
participant's governing authority Is necassary. (Indicate Yes or No in the box )
Yes 1.2.3 As an applicant. we have administratiYe and financial management systems and
follow procurement standards that comply with the standards aet 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
htt~:/lwww .a~enera:tauthoritv .Q£9/veeo/Gram-T mn~~te .~. (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 constNcted 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.
AEA 2014-006 Grant Application Page2of3S 71112013
Renewable Energy Fund Round VII
Grant Application -Standard Fonn
In 2002 , Borough residents voted to consolidate the first.class City of Haines and the third-
class Haines Boroug h into a home-rule boroug h, adding area wide planning . platting. and
land use regulation to the responsibilitle of the local government Excursion Inlet (see
Figure 2) Is a com munity located in the extreme SW regio n of the Borough. It is not an
organized community , but has been home to a significant fish processing industry for many
years .
A large pa rt of the economic base of the Haines Boroug h Is the fishery In the region , with a fnl
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Grant A plication -Standard Fonn
~• value c1 $39,000,000 in 2011 1• The bulk of the Haines gillnaltitg t1aat (82 permits) aela
to Ocean Beauty Seafoods. The facility Is cunently operating under the license of Ocean Beauty
Seafoods, Inc. In FY13 the Borough nteeived $326,813 in raw ftah tax, an estimated 95% of that
generated in Excursion Inlet. Over the previous decade, FY03-12, the Boroug h received
$1 ,541 ,000 in raw fish tax. In addition to the seafood industry , the community of Emusion Inlet
includes 119 parcels of land owned by 95 unique owners.
Figure 2-Excursion Inlet (photo courteay of Ocean a.uty 8ellfooda)
U ke most of Alaska 's remote communities , Excursion Inlet, including Ocean Beauty
Seafood's plant, is entirely dependent on diesel fuel imported into the area for heat and
power . The steady nse of fuel costs, logistics, transportation, and power generation, and
the cost of maintaining diesel gerwators in Excursion Inlet make the development of
renewable energy resources a sound investlttent for the Borough. This project MlUid
support the study of conditions that might encourage the further development of hydropower
generation infrastructure in Excursion Inlet.
Project Background
Since the 1970's , AEA and SE Conference have explored the potential for hydroelectric
development in the southeastern region of Alaska. Studies include:
• Regional Inventory and Reconnaissance Study for Small Hydropower Sites
in Southeast Alaska, October 1979, Department of the Army, Alaska
District, Corps of Engineers
• Southeast Alaska Hydropower, Robert Rutherford Associates, 19n
• Southeast Alaska Hydropower, Robert Rutherford Associates, 19n
• Southeast Alaska Electrical lntertie Plan , ACRES International for SE
Conference, 1988
• Southeast Alaska lntertie Study, Phase 2, 0 Hittle & Associates for SE
Conference, 2005
1 Processor 1st wholesale value by Census Area 2011, provided by Alaska Seafood Marketi ng Institute.
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Recently , ENVIRON International, and its sub-consultant Civil Science, completed a
Reconnaissance Study that determined that hydropower could be developed at Excursion
Inlet without the need for fish passage for the potentially moat feasible altamatives
Identified.
Two creeks at Excursion Inlet were idet ltified as potentialy feasible hydropower sites;
North Excursion Inlet Creek and South Excursion Inlet Creek (F"~gure 3).
q eNVIRON Excursion Inlet
Vicinity Map
Figure
1
Renewable Energy Fund grant guidelines require a mufti.phaae approach to project
development. The Borough recently completed the first phase (Reconnaissance) and is
requesting funds for the second phases In this application : Feasibility/Conceptua l
nStudies.
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Grant Application -Standard Form
12.1 Project ntle-(Provide a! to z--for your pnJjact).
Excursion Inlet Hydro Project-Feasibility and Conceptual Design
2.2 Project Location -
Include the physical location of your project and name(s) of the community or communities that wil
benefit from your project in the subsections below.
The Excursion Inlet Hydro Project is located within Excursion Inlet (the community of the
same name in southeastern Alaska; Figure 3), strategically located in Icy Straits, the water
body at the extreme southwest of the Haines Borough. The community is composed of 95
land owners induding Wards Cove Packing Company, dba Ocean Beauty Seafoods, and
several commercial sport fishing lodges. The industry and most residences are seasonal.
The valuation of the community in FY12 was $16,200,000.
2.2.1 Location of Project-Latitude and longitude, street add..., or community name.
Latitude and longitude ooon1inates may be obtained from Google Maps by finding you ptOjecfs location on the map
and then right clicldng with the mouse and selecling WJat is here? The COOirlinatee will be diSplayed In the Google
sean:h window abov8 the map in a fomJ8t as folkNis : 81 .19587tJ.-149.898663. If you would lllce 8SSistBnoe obtaining
this infonnation please contact AEA at 907-771-3031 .
Excursion Inlet is situated at SS025'o· Nand 135~6'34. W.
2.2.2 Community benefiting-Nama(s) of the community or communldea that will be the
benefidartes of the project
Excursion Inlet is a community located in the extreme SW region of the borough. It is not an
organized community but it has been home to a significant fish processing industry for many
years. In addition to the seafood industry, the community of Excursion Inlet indudes 119
parcels of land owned by 95 individual owners.
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Grant Application· Standard Form
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 Photovottaic Storage of Renewable
Other (Describe) Small Natural Gas
2.3.2 Proposed Grant Funded Phase( a) for this Requ•t (Check all that apply)
~!!..C2QStru~2D cgostrusrllgo
Reconnaissance Final Design and Permitting
X Feasibility and Conceptual Design Construction and Commissioning
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
A Phase II Feasibility Study would be carried out, including the following tasks
• Project scoping
• Detailed energy resource analysis
• Identification of land and regulatory issues
• Permitting and environmental analysis
• Detail analysis of existing and future energy costs and markets
• Assessment of alternatives
• Conceptual design analysis and cost estimate
• Conceptual business and operations plan
• Final report and recommendations
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Grant Applicat ion -Standard Form
2.6 PROJECT BENEFIT
Briefly discuss the financia l and public benefits that wiD msult from this project, (such as reduced fuel
costs, lower energy costs, local jobs Cf98ted, etc.)
This project has multiple benefits, induding Ocean Beauty Seafood's (OB) ability to operate
successfully during an extended season at Excursion Inlet. The financial benefits are the
result of lower operating costs and inaeased capacity.
During the shoulder seasons -March to April and September -the plant cannot operate at full
capacity and the diesel power generators operate inefficiently and OB cannot operate
profitably. The shoulder seasons present opportunity for new mar1<ets. With lower power
generation costs, OB could expand into the herring and crab markets, and increase its
halibut poundage. The fall season presents black cod in addition to coho; value-added
repackaging of salmon frozen during the peak season is also a shoulder season activity.
Lower power generation costs would result in a longer, more profitable operating season,
which would benefit the fishing fleet by providing a buyer in new markets and benefit
employees by providing additional income, as well as benefit the Borough and State with
increased raw fiSh tax revenue.
OB currently buys from approximately 30 trollers, 40 seiners and 60 gillnetters, the majority
residing in the region. Historically, when the plant is stressed from operating at peak capacity,
OB will limit the amount of product it can purchase, and the fleet has no market. The net total
increase in available power by the use of hydropower with diesel backup will increase plant
capacity. This has potential to increase the OB fleet by providing additional markets.
Increased fish product landed at Ocean Beauty Seafoods translates into increased raw fish
tax revenue for the Haines Borough. Providing this clean power would lower overall pollution
and C02 levels.
An indirect benefit is increased community service to the Haines Borough. OB's plant
provides garbage, fuel, freight, and airport maintenance to the region, but they can do so only
when processing at a high level of output. The longer they operate in a season, the greater
their ability is to provide these services to the community.
Additionally, the availability of hydropower in Excursion Inlet will improve the quality of life for
residents by alleviating the need to purchase, operate and maintain stand-alone diesel
generators. There are 119 parcels and 95 separate land owners in Excursion Inlet. The
Haines Borough has selected additional lands in Excursion Inlet, and when titled, intends to
sell them. The possibility that the Excursion Inlet community will grow is real and low-cost
energy will encourage this development and growth.
2.6 PROJECT BUDGET OVERVIEW
Briefly diScuss the amount of funds needed, the anticipated sources of funds, and the natum and source
of other contributions to the project.
The Haines Borough requests funding for the second phase of study proposed in this Grant
Application. A total of $223,536 is required, to conduct the more detailed studies of the project
to be performed in the Phase II Feasibility Study. The Haines Borough intends to provide
$10,000 matching funds in Phase II of the project and requests that this grant cover the
remaining amount of $213,536.
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Grant Application -Standard Fonn
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project's total costs and ben6fitB below.
Grant Costs
(Summaty of funds requested)
2.7 .1 Grant Funds Requested In thla application $213,636
2.7.2 Cash match to be provided $10,000
2.7.3 In-kind match to be provided s
2.7.4 Other grant fund& to be provided s
2.7.5 Other grant applications not yet approved s
2.7.6 Total Grant Coats (sum of 2.7.1 through 2.7.4) $223,636
Project Costs & BerwdiiB
(Sumtnaty of total project costs Including worlc to date and futu1e cost estimates to get to a fully
opetational project)
2.7.7 Total Project Coat Summary from Cost Worlcshee~ Section $14,600,000
4 .4.4. including estimates through construction.
2.7.8 Additional Perfonnance Monitoring Equipment not covered $0
by the project but required for the Grant Only applicable to
construction phase projects.
2.7.9 Estimated Direct Financial Benefit (Savings) $816,000/year
2.7 .1 0 Other Public Benefit ff you can calculate the benefit in terms $9,900/year -direct
of dollars please provide that number hel8 and explain how you financial public benefit for
calculated that number in Section 5 below. community and does not
Include other public
benefits such as
Increased tax base and
cleaner air.
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Renewable En ergy Fund Round VII
Grant Application -Standard Fo nn
SECTION 3-PROJECT MANAGEMENT PLAN
Describe who wRI be I8SpOnSible for managing the project and ptoVide a plan for successfuly
completing the project within the scope, schedule and budget proposed In the appllcat/on .
3.1 Project Manager
Tell us who will be manag ing 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.
Mr. Darsie Culbeck, Assistant to the Manager of Haines Borough, will be the Project Manager and
responsible for managing the project for the Grantee. Mr. Culbeck's contad information is
provided in Section 1. above.
Please fill out fonn provided below. You may add additions rows as needed
Milestones
Project Scoplng
Detailed energy resource
analpls
Identification of land and
regulatory Issues
Pennlttlng and environmental
analysis
AEA 2014-008 Application
Tasks
This will be the kickoff for this phase of work.
Based on the project configuration and
hydrology of the applicable stream( a),
average annual energy production will be
estimated. For the feasibility phase analysis it
is expected that a hydrologic record for a
similar stream in Alaska will be selected and
corrected by drainage area. The monthly
energy production for the hydroelectric
projects will be compared to the Excursion
Inlet community needs. As a part of the work,
stream gauges will be installed at the two
streams to begin collecting flow data.
Issues regarding land-use, and regulatory
issues will be further developed in this phase
of study. Land acquisition (or lease?) for the
projects will be identified and acquisition
costs estimated . Regulatory issues
associated with operation of an electric utility
will be identified and costs estimated.
Cost estimates will be prepared for
acquisition of necessary permits to allow the
construction and operation of hydroelectric
project(s). Initial scoping of environmental
issues (expected to be primarily aquatic
resources, but terrestrial resources will also
be reviewed) will be made with the involved
regulatory agencies. It is expected that the
major issues will be associated with aquatic
resources and will be related to minimum
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Grant Application -Standard Fo nn I
flows and fish passage requirements .
Terrestrial issues associated with project
impacts will also be investigated. A site visit
to assess these issues will be budgeted for
this phase of work .
Detailed analysis of existing and Existing energy uses and energy production
future energy costs and markets from the proposed projects will be reviewed
to detennine how well the proposed projects
can meet the needs of the fishing fleet,
commerciaJ interests and residents in the
community . Possibilities for growth of the
community and Ocean Beauty Seafood's
facility will be made to detennine what role
the projects can play in meeting those needs .
A~entofa~ernadves Alternatives to construction of hydroelectric
projects will be reviewed. Alternatives may
include wind power, tidal power, or
interconnection to a regional grid (SE
lntertie).
Conceptual design analysis and A conceptual design for each hydroelectric
cost estimate project will be developed . A project plan;
profile along the water conveyance system ; a
plan of the diversion dam and intake; a
powerhouse plan and a single-line diagram
will be developed . As a part of the design
analysis it is expected that a site visit will be
required, and the site plan topographic
infonnation will be refined . A cost estimate for
each project will be developed .
Detailed economic and financial Based on the project development cost
analysis estimated energy sales will be estimated
and projected over time . An estimate of
the operating costs for the projects will be
made . Sources of funding for project
development will be reviewed and cost of
capital estimated . A financial model will be
developed to detennine the projects' ability
to cover operating costs and service debt.
Conceptual business and A business plan will be developed to address
operations plan the structure for developing the projects and
the plan for project operations . This task will
require specialized consultation due to
political and regulatory realities, given that
Excursion Inlet is not within an ARC service
area ; the Haines Borough, as a home rule
borough, has options for delivering services
within service areas.
Final report and A final report will be developed to document
recommendations the results of the study. Included in the report
will be recommendations for further project
development if merited .
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Grant Ap licat lon -Standard Fonn
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 Desaibe 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
su liers as an attachment to our a ication .
A team approach will be employed to successfully complete this project. The team will
consist of The Haines Borough, the selected consultant, and the AEA grant manager. Each
of the tasks described in this application requires specialized knowledge and skills that must
be obtained from private sector consultants and service providers engaged in or highly
familiar with hydropower resource development. Environ International Corporation and their
subcontractor CMI Science recently completed the scope of work associated with the
Reconnaissance Study.
3.4 Project Communications
Discuss how you plan to monitor the project and keep the Authority mformed of the status.
PJease~rcMde an alternative contact .P8fJQn and their contact information
Mr. Culbeck will be the project manager and primary point of contact for communications with
AEA and the grant manager. This will ensure an effective, continuous flow of communication
throughout the proJect. The project team will use a suite of project management tools
including web-based communications and reporting, task and milestone tracking, work
breakdown structure, scheduling, document control, budget control and risk management.
The project manager will coordinate with the AEA grant manager to develop a schedule of
reports. At a minimum, the borough will conduct monthly status tele-conferences and web-
based distribution of reports on scope, schedule, budget and unresolved issues.
Troubleshooting reports and teleconferences will be scheduled on an as-needed basis.
13.5 Project Risk
piscuss potential problems and how you would address them .
Potential nsk for this project centers on site conditions. Field work is required for project
development and investigation, stream gauging, environmental review and permitting
requirements. Some of these activities can be impeded or delayed by weather conditions and/or
stream flow. The project team is familiar with contingency requirements for site work in remote
locations and will effectively manage the project schedule to avoid disruptions or delays.
Potential risks associated with development of the hydroelectric projects will be identified as a
result of the studies.
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Grant Application -Standard Form
SECTION 4-PROJECT DESCRIPTION AND TASKS
• The level of lnfotmlltlon w#H vaty IICCOI'ding to phae(s) of the project you propose to
undertake with grant funds.
• N some worlc has already been completed on your project and you al'8 tequesting funding for
an advanced phase, submit lnfotmatlon sufficient to demonstrate th at the pi8C8ding phases
81'8 satisfied and funding for an advanced phase Is wananted.
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 desig n and permitting or constnJctlon projects, please
provide feasibility documents, design documents, and permitting documents (tf applicable) as
attachments to this application.
The 1979 report ·Regional Inventory and Reconnaissance Study of Small Hydropower Sites in
Southeast Alaska· performed by CH2M Hill identified North and South Excursion Creek as
potential hydropower project sites. The potential resource includes two streams near Excursion
Inlet. Either one or both of these streams could be used for hydroelectric energy generation. The
recent ENVIRON study identified five prospective hydropower project alternatives (two situated in
North Excursion Inlet Creek and three in South Excursion Inlet Cree) that could not only meet the
current demand by OB but would allow for expanded season for the cannery and provide an
alternative to diesel to other property owners (951ndividual owners) for electricity.
Alternative generation resources include wind and interconnection to a regional grid. Based on
available wind resource maps Excursion Inlet does not appear to have a wind resource that is
economic. The SE lntertie has been under study for a long time. The cost to interconnect locations
such as Excursion Inlet appears to be cost prohibitive.
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 .
Excursion Inlet is a remote community in the southwestern part of the Haines Borough. Ocean
Beauty Seafood's fish processing plant is the primary employer and only significant fish
processor in the region. During the summer, the facility employs 400 people and supports a
varied fleet of 127 boats that depend on the plant for maintenance, fuel delivery and ice.
Ocean Beauty Seafood provides all power to the community. Their facility is presently
operating strictly on diesel fuel for boilers and electricity generation. The electrical power
system consists of five diesel generators: three 600kW D398, one 275kW D353, and one
1100kW 3516. These generators are over 20 years old, and are about half as efficient as the
current generation of diesel generators. The minimum operating power needs are
approximately 800 kW with average operating needs at around 1,600kW. The maximum
demand is roughly 2,100 kW. Based on current generator capacities, other than during peak
demands, the facility Is not able to efficiently match power needs to its generator capacities.
Residents and small businesses provide their own power with diesel or gas-fired generators
upto20kW.
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Renewable Energy Fund Round VII
Grant Application -Standard Fonn
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 .
During an average year, Ocean Beauty Seafoods consumes approximately 300,000 gallons of
diesel to produce 3,900,000 kWh/yr. During the larger seasons of the early 2000s these numbers
were typically doubled. Currently, energy use in Excursion Inlet is highly seasonal, as Ocean
Beauty Seafoods is operating its facility from June through September. The rest of the year energy
needs are limited to energy for their facility caretaker staff.
As previously noted, it is expected that energy from a hydroelectric resource would have a
substantially lower cost. Lower cost power would allow Ocean Beauty Seafoods to extend its
operating season, thereby opening new markets in herring, crab, halibut, coho, black cod and
value-added repackaged salmon products.
The Excursion Inlet community consists of 119 parcels, with Ocean Beauty Seafoods having the
single greatest impact on resource use. Three sport fish lodges and residents generate their own
power with small generators. The project will address the needs and methods of distributing
electrical service to the community, thereby reducing total community fossil fuel consumption and
corresponding carbon footprint.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
For 2011, Ocean Beauty Seafoods paid $3.23 per gallon for diesel, including transportation and
storage. It is reasonable to assume that as the wortd economy recovers, the wor1d demand will
drive these prices gradually higher over time. Currently EIA states the U.S. average for diesel is
$3.97 per gallon.
Ocean Beauty Seafoods' variable O&M costs have been estimated at $0.02 per kWh. Most of
the generators installed there are very old and inefficient. It is likely that within the next 5 years
they will need to replace the older engine-generator sets. Given the estimated efficiency of the
units (13 kWh/gal), and fuel cost in 2010, the estimated total cost of power produced in 2010 is
on the order of $0.30 per kWh. Obviously, this will escalate over time with fuel price. Note that in
2003 the diesel fuel price in Excursion Inlet was $1.10 per gallon.
While presently Ocean Beauty Seafood is the largest significant energy user, the Borough
anticipates a market for energy to residential and light commercial interests developing over
time. Current energy produced at the seafood processing plant is used ONLY by the seafood
processor. The project could positively impact energy customers, as homes and businesses
currently providing their own generation through small generators could purchase power from
the energy project, which could prove more efficient and less costly.
The proposed hydroelectric projects have the potential to displace significant amounts of diesel-
fueled generation and allow the local community to cooperatively use shared energy resources
with lower costs.
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Grant Application -Standa rd Form
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 environmenta l 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
The following prospective project alternatives identified by ENVIRON in their recent report should
be considered for further study:
• Alternative N-H-1 b -North Creek Hanging Watershed
• Alternative N-L-3 -North Creek Long
• Alternative S-H-1 -South Creek High
• Alternative S-M-2 -South Creek Medium
• Alternative S-L-3 -South Creek Low
Descriptions for each are presented below along with draft site plans.
Alternative N-H-1 b-North Creek Hanalna Wat!l!hed fBI
This alternative is nearty identical to the previous alternative, differing only in the alignment of the
penstock (Appendix D, sheet number N-H-1_8). It appears less susceptible to mass wasting from
the south facing slope. It will require mid-range capital expenditure (as compared to all
alternatives). This alternative will operate at a higher utilization than the 4 non-storage
alternatives. As with alternative N-H-1 a. this alternative may be optimized to fit most demand
curves envisioned for power delivery to Ocean Beauty. The direct penstock alignment between
the hanging watershed and North Creek allows for construction without the access road but will
require airlift support for penstock and dam installation as well as maintenance.
Construction of the penstock along the steep canyon slope (up to 60%) between the hanging
watershed and North Creek will be challenging. This alternative will require an airlift component for
construction of the dam, as well as long-term logistical planning for future maintenance work. The
stability of the natural precipitation on this smaller watershed footprint may put power yields at risk
in dry years, thus requiring backup diesel electric generation during peak demand.
Storage in the high watershed may be acceptable to stake holders as a change to the natural
landscape; however, as with the previous alternative, the penstock will be more visible.
Engineering analysis wilt be required for stabilizing the penstock in steeper slopes. Additionally,
further analysis will be required to understand geological and geotechnical constraints at the base
of the hanging watershed for dam siting. Flow characteristics of the hanging watershed will need
to be studied to understand when releases occur and how much potential ice we will be dealing
with . As a result, it is our recommendation that this alternative be carried forward for further
analysis.
AEA 2014-008 Grant Appllc8tton Page 15of35 71112013
Renewable Energy Fund Round VII
Grant icatlon -Standard Form
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Alternative N·L-3-North Creelr Long
/
This alternative would consist of the construction of a diversion weir located further up-stream
from N-M-2 (Appendix 0, sheet number N-L-3). This will require a longer stretch of large diameter
penstock in order to capture peak flows and will result in upper mid-range capital expenditure
compared to all alternatives.
The penstock and roadway have been shown on the left bank to reduce risk from mass wasting off
the opposite slope. While cost is somewhat higher than other options, this alternative offers a
greater peak energy output.
Further engineering analysis may be required to understand historical reaches of sliding in the
area and better quantify risk. The penstock was conceptually sized to handle peak flows while
minimizing velocities and will require optimization if further analysis is warranted. As a result, it is
our recommendation that this alternative be carried forward for further analysis .
AEA 2014-008 Grant Application Page 18of35 7/112013
Renewable En ergy Fund Round VII
Grant llcation -Standard Fonn
--
- - -D.-IOID ---~-----··· .......
~'VIMI'&~UIO
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Alternative s-H-1: South Cf!tlr High
This alternative would consist of the construction of a diversion weir located relatively high--up in
the South Creek system, which will require a long-stretch of large-diameter penstock in order to
capture peak flows and costs will lie in the mid-range of capital expenditure compared to all
alternatives (Appendix 0, sheet number S-H-1).
While the cost is somewhat higher than other options, this alternative does offer a greater peak
energy output. Further engineering analysis may be required to understand historical reaches of
sliding in the area and better quantify risk. The penstock was conceptually-sized to handle peak
flows and will require optimization, if further analysis is conducted. It is our recommendation that
this alternative be carried forward for further analysis .
AEA 2014-008 Gnnt Application Page 17of35 71112013
Renewable Energy Fund Round VII
Grant Application -Standard Form
--L"-.. tme, --. '"' --.... ~ -------...:» -------.. ,.
Alternative s-M-2. South Creek fledlum
This alternative would consist of the construction of a diversion weir located in the middle reaches
South Creek and would require a long-stretch of large diameter penstock in order to capture peak
flows, which would result in mid-range capital expenditure compared to all alternatives (Appendix
0, sheet number 5-M-2).
The estimated capital cost for this alternative is more attractive than other options and offers a
greater peak energy output. The penstock was conceptually sized to handle peak flows while
minimizing velocities and will require optimization, if further analysis is conducted. It is our
recommendation that this alternative be carried forward for further analysis.
AEA 2014-008 Grant Application Page 18of35 71112013
Renewable Energy Fund Round VII
Grant A lcation -Standard Fonn
··\.·--. ~ -------____ ..,
-~ ....... . __ ..
Alternative 5-L-3. SqutiJ Creek Low
This alternative would consist of the construction of a diversion weir located in the lower reaches
of South Creek but above the natural fish barrier identified in the Phase I report (Appendix 0,
sheet number S-L-3). It would require a shorter stretch of large-diameter penstock in order to
capture peak flows, which would result in a low-range of capital expenditure compared to all
alternatives.
This alternative is attractive due to its low estimated capital cost requirements; however, peak
energy output is lower than the other South Creek alternatives. The penstock was conceptually
sized to handle peak flows while minimizing velocities and will require optimization, if further
analysis is conducted . It is our recommendation that this alternative be carried forward for further
analysis .
AEA 2014-006 Grant Application Page 18of35 71112013
Renewable Energy Fund Round VII
Grant cation -Standard Form
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---~----._.., _..L.•rll' ....
---""*'·~·--0 .... " ........
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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 .
Land records will be reviewed and the owner(s) of the project lands will be identified. If the project
is located on land owned by others, then the Borough would need to either acquire the some or all
of the necessary land, or to obtain easements or rights of way. If any part of the project is on
USDA Forest Service land, then a Special Use Permit would be required, and they would have
mandatory conditioning authority if a FERC license were required.
4.3.3 Pennlts
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit Issues.
• Ust of applicable permits
• Anticipated permitting timeline
• Identify and discussion of potential barriers
The prospective hydropower project at Excursion Inlet would almost assuredly fall under the
jurisdiction of the FERC. Since 2005, the Integrated Licensing Process (ILP) has been default
process for filing a new license application with FERC and Figure 2 below presents a flow chart for
the pre-application activity. It is important to note that there are other processes available to the
Borough, which includes the traditional licensing process (TLP) and the alternative licensing
process (ALP) both of which have been used in lieu of the ILP for a number of hydropower
development sites throughout the US. Moving forward with this project strong consideration
should be given to all three processes as to which would be the most beneficial to the Borough .
AEA 2014-008 Grant Application Page20of35 71112013
Renewable Energy Fund Round VII
Grant Application -Standard Fonn
Applicable permits for the construction of a hydropower project at Excursion Inlet site may include:
1. Water rights and/or lnstream Flow certificate-Alaska Department of Natural Resources
(DNR), Division of Mining, Land, and Water.(ln Alaska, federal reserved water rights may
be involved if the project water source is on federal land.)
2. lnstream Flow reservation -may be required as protective measure for preservation of fish
habitat.
3. Land ownership, easements or rights of way, USFS Special Use Permit.
4. FERC License, or Alaska DNR, Division of Mining, Land and Water, Dam Safety and
Construction Unit (DSCU) Certificate of Approval to Construct A Dam and Certificate of
Approval to Operate A Dam.
5. Fish Habitat Permit-Alaska Department of Fish and Game (ADFG).
6. Water Quality certification -must meet state standards administered by the Department of
Environmental Conservation (DEC), Division of Water.
7. Coastal Management Program project consistency determination.
8. Local construction permits, if applicable.
9. Army Corps of Engineers Section 404 Permit for developments within ordinary high water
of navigable rivers and/or wetlands of navigable rivers
This list of permits will be reviewed and updated .
Pennlttlng Tlmellne
FERC has primary jurisdiction over construction of most U.S. hydropower projects. However,
FERC has agreed that some small projects in Alaska are non-jurisdictional. For example, the
Nushagak Cooperative in Dillingham, Alaska was able to obtain a declaration of non-jurisdiction
because its proposed project would not be connected to an inter-state grid; would not be located
on federal lands, and is located on a non-navigable river. If a FERC license is required, may be
possible for a small project to obtain a FERC license within a year after the formal initiation of the
licensing process, if the environmental issues can be resolved expeditiously with the resource
agencies as the process moves along. However, if significant information needs are identified, and
depending on the number and the nature of studies required, the permitting process could take
much longer.
If the project(s) were determined not to be within FERC's jurisdiction, the State of Alaska would
approve the construction and operation. The timeframe for state permitting would be explored with
the agency in the initial phases of the project, but it is anticipated that timing would again depend
upon the complexity of the resource issues that are identified.
Potential Barriers
Potential barriers to obtaining the permits needed to construct a project(s) at Excursion Inlet
indude:
• fish habitatlinstream flows
• anadromous fish distribution in both creeks
• location of project structures within or affecting anadromous fish habitat
• sediment routing at the diversion structures
• water quantity and quality issues associated with the diverting of streamflow for the
proposed projects
• other environmental issues not currently known
AEA 2014-008 Grant Application Page21 of35 71112013
Renewable Energy Fund Round VII
Grant Application -Standard Form
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 ~ .~al barriers
Matrix of Prospective Environmental Assessment and Analysis Needs
Pennlttlng Issue Status Prominence In Confidence (about
(current NEPAand prominence)
understanding) Pennlttlng
Processes
• Threatened or Ukely to OCQJf' within the Minimal. No ESA-High.
Endangered speaes project area : listed species present
Stellar's eider -FT in area. Documentation readily
Kittlitz's murrelet -FC available .
Yellow-billed loon-FC
Nortem sea otter -FT
Stellar sea lion-FT (refer
to Attachment 1 TESC
listinas)
• Fisheries habitat Fish passage examined in Moderate for fish High -Fish Passage
Phase I. lnstream flow will passage. Placing
change in upper reaches diversion upstream of Ear1y -established
of anadromous fish anadromous fish relations with ADF&G
distribution habitat and designing and their familiarity with
upstream passage for the site will facilitate
resident Dolly Varden permitting and shape
is avoidance and comments on FERC
mitigation . process. Fish passage
requirements well-
Moderate for instream understood.
flow . Possible
improvement in fish Moderate -lnetream
habitat with reduced Flow
flows. Uncertainty
about the amount of Effects on salmon
anadromous habitat resources are subject to
affected due to siting public and agency
and official scrutiny. Project may
designation of affe<:t habitat for some
upstream limits of but likely not all life
anadromous fish . stages.
• WeUands, vegetation, NVVI shows forested Moderate. Short-term llodera18
and other protected areas FW/shrub wetlands on c:onstrudion effects
AEA 2014-008 Grant Application Page22of3S 71112013
Renewable Ene r gy Fund Round VII
Grant Application -Standard Fonn
both malnstems .
• Water quality NPDES permit for Ocean
Beauty processing
discharge into ExaJrsion
Inlet
• Water rights Al. least 5 water rights in
the AK DNR database , 4
on South Creek, 1 on
North Creek (Ocean
Beauty)
• Archaeological and Neva Lake is i n the
historical resources treditionallands used by
the Huna Tlingit Tlinglit
archaeological finds have
been made in this area 2
• Recreational use Only one sportfishing
guide in the area 2; Most
sport fishing for Neva
sockeye salmon is done in
the intertidal area 1
.
• Land development 700 acres along portions
constraints of North and South Creek
designated by USFS as
'Al ienated Land '5 (refer to
Attachment 2 USFS map)
and 'Borough Selected '
(for acqu isition) in Haines
Borough comprehensive
plan (refer to Attachment
3).9 Borough collaborated
on USFS Land Use
Designation indicating joint
agreement
• Visual and aesthetics No information specific to
impacts this topic found
• Telecommunications Nearest cell tower owned
interference by Dobson
possible but likely little
or no pennanent
disturbance .
Possible that project
wi ll be able to avoid
wetlands and
minimize disturbance.
Low. Natural high
quality water is difficult
to affect with this
Project BMPs can
address construction
effects.
Low. Permitted
withdrawals are
downstream of li kely
zone where
powerhouses may be
sited.
Moderate. Project
area is heavily
developed at lower
elevations, historically
as WWII PON camp ,
more recently for
industrial uses.
Archaeological sites
likely but locations are
laraetv unknown.
Low. Streams and
vicinity are not known
as a destination
recreation site.
Umited local use
primarily for fishing ,
hunting and hiking.
Stream possibly
known for back-
country whitewater
boating. Lots of other
opportunities in the
surroundina area .
lloderat8. Project is
included in the Ha ines
Borough Comp plan
and public survey
showed support.
USFS has well-
developed LUDs and
HB Future Growth
Maps in plan follow
USFS lead for its land.
W()ft( in 'Borough
Selected' areas may
require USFS permit
deDendino on status .
Low. Project
strudures will be sited
in remote areas likely
with primitive access
to the~.
Low. Project
structures are not
AEA 2014-008 Grant Application Page23of35
Project structure siting,
construction roads, and
penstocK location are
prime detenninants.
High
High
Information on water
rights maintained by AK
DNR
Low. Expert review of
project design and
construction routes
required
High. Types and
locations of recreation
generally well-
advertised
High. 2012 Comp Plan
and USFS plans
provided detailed maps
and info
Moderate. Visitors to the
upper reaches of the
Project stream may be
able to see some
Proiect structures
Moderate.
Few
71112013
Renewable Energy Fund Round VII
Grant Application • Standard Form
Communications and
located near Gustavus,
about 10 miles W of
Excursion Inlet'
• Aviation considerations Seaplane base ('For the
12-month period ending
December 31 , 2006, the
airport had 700 aircraft
operations, an average of
58 per month: 71%
general aviation and 29%
air taxi')~
• Cultural Subsistence and personal
use fishing for Neva
soc:fteye salmon occurs
both in saltwater, at the
mouth of South Creek,
and in freshwater in South
Creek and Neva Creek '
Hoonah residents
subsistence fish in
Excursion Inlet and Neva
Creek 7
1. btto .//al~§~~-fws .gQv/ii!§!!ll~f/fi§he!:i~~l:r~1221l~~-Q12'~ odf
likely to direc::Uy telecommunicationl
int8ffere with cell structures are in the
tower service. area
Low. No effect on Low. Depends upon
operations beyond flight paths into area.
increase in traffic for but lack of other
construction. interfering structures
could leave options
open for other
approaches
Moderl18. Neva High Annual
Creek is a part of a subsistence fishefy
larger subsisten<:e assessments have been
fishefy; Hoktaheen in place sinoe 1oose-
Bay is reportedly
where most of the
Hoonah get their
sockeye; depends
upon affects to fish
habitat and cultural
reliance on area
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4.4 Proposed New System Coats 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 Coat
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following :
• Tota l 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 .,.. ... renewable --wY svstem
Preliminary project construction cost estimates were developed for all alternatives considered by
ENVIRON, as part of the recent reconnaissance study , which are presented in the tables below.
AEA 2014-006 Grant Application Page24of35 71112013
Renewable Energy Fund Round VII
Grant Application -Standard Fonn
Estimated North Creek Project Alternative Generation Facilities Construction Costs (In
$2013)
PROJECT ALT. N-H-1a ALT. N-H·1b ALT. fC.M-2 ALT. N-1..-3 FEATURE
Dam /Intake $3681,000 $3 681 000 $48000 000 N/A
Diversion Weir I N/A NIA NIA $360,000 Intake
Roadway I $8,144,000 $6,800,00 $1,583,000 $4,812,000 Bridge
Power Conduit $5,381,000 $1,778,000 $1,718 000 $9194 000
Powerhouse $1,200,000 $1,200000 $1200,000 $1,200000
Turbine
Equipment I $2,000,010 $1,675,000 $1,139,000 $2,680,000
Controls
Switching $450,000 $450,000 $450,000 $450,000 Equipment
Transmission $142,000 $1 284,000 $312,005 $437_,_000
Contingency $21,008,000 $16,886,000 $54,403,000 $19,134,000 (100%)
Total Estimated $42,006,010 $26,964,000 $108,806,005 $38,267,000 System Cost
Estimated South Creek Project Alternative Generation Facilities Construction Costs (In
$2013)
PROJECT FEATU RE ALT s.L-3 ALT 5-11-2 ALT s-H-1
Dam /Intake N/A NIA N/A
Diversion Weir I $540,000 $240,000 $720,000 Intake
Roadway I Bridge $979 000 $1 708,000 $3 041,000
Power Conduit $1 303 000 $3 326 000 $7,253 000
Powerhouse $1200,000 $1200,000 $1,200 000
Turbine Equipment I $2,345,000 $3,819,000 $5,561,000 Controls
Switching Equipment $450,000 $450,000 $450,000
Transmission $437,000 $437,_000 $437,000
Contingency ( 1 00%) $7 255,000 $11,181,000 $18,663 000
Total Estimated $14,609,000 $22,361,000 $37,326,000 System Cost
It is likely that the Borough could finance some portion of the development cost of the project by
grant funds and the balance could be obtained through Bonds or other municipal financing.
AEA 2014-008 Grant Application Pagl25of35 7/112013
Renewable Energy Fund Ro u nd VII
Grant Application -Standard Fo nn
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 818 not eligible for grant funds however grantees al8 required to meet
ongoing repotting requll8ments for the purpose of repolting Impacts of projects on the
communities they serve.)
Operations and maintenance costs were estimated to be $0.04 (2013) per kwh for both the North
and South Creek projects (see table below). These costs are based on current operating costs for
existing, similar sized projects located in Alaska, with similar access.
Alternative Annual O&M Costs for North Creek and South Creek Alternatives
Altematlve An nual Energy O&M Cost, ' Ann ualoaM
Plod ...... kW h $201 3/kWh ,..__.. $2013
N-H-1a 24 980,000 $0.04 $999,200
N-H-1b 20,817,000 $0.04 $832,680
N-M-2 14 063,000 $0.04 $562,520
N-L-3 10,518,000 $0.04 $420 720
S-L-3 9 203 000 $0 .04 $386120
S-M-2 14,988000 $0.04 $599 520
S-H-1 21,825,000 $0.04 $873,000
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 .,. "tV"'
As noted above, it is expected that electricity would be sold to the community. Residential uses,
while presently not significant, are expected to rise with the provision of services. The existing
industrial user, Ocean Beauty Seafoods, would be the primary purchaser in the summer
months. And other businesses (fishing/hunting lodges) would be likely to purchase power
instead of continuing to generate their own power.
Power purchase prices have not yet been determined but are expected to be between
$0.10/kWh and $0.20/kWh, based on current residential and small commercial AEL&P rates,
and cost-plus basis for several Project configuration options.
Based on the spreadsheet analysis of diesel displaced by hydroelectric production, there will be
a respectable benefit/cost (BIC) ratio for the project. Based on a range of likely project
configuration and a range of project demand, the BIC ratio will be between 1.09 and 1.43. The
proposed rate of return is 5.0 percent.
AEA 2014-006 Grant Appllcelon Page26of35 71112013
Renewable Energy Fund Round VII
Grant Application -Standard Fonn
•·•·• Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered In
evaluating the project
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. 5.7-8.3 MW
Unit depends on PI oject type (e.g. windspeed;rt, h~yd;i;ropo;;:;;w;;;;~er;;-;:;;output";t;;;l, hiblomasss;:;;;;;;;;-;;fuel;;n) ----
Existing Energy Generation and Usage
a) Basic configuration (if system Is part of the Railt.tt2 grid , leave this section blank)
I. Number of generators/boilers/other 5 diesel generators
u. Rated capacity of generalorslboil 3,175 kW
Ii i. Generator/boilers/other type Diesel --------------------------------iv. Age of generatotslbotlerslother 20 years +
--~----------------------------Y. Efficiency of generatorsJboilrslother _1_3_k_W_ht...::g;_al _________________ _
b) Annual O&M cost (if system Is part of the Railbelt grid , leave this section blank)
I. Annua l O&M cost for labor Not separately broken out
----~--~-----------------------------. Annua l O&M cost for non-fabor Estimated at $0.02 per kWh
------------~----------------------
c) Annual electricity production and fuel usage (fiH In as applicable) (If system Is part of the
Railbelt grid , leave this section blank)
I. Electricity (kWh) 4,410,000 ------------------------------------------------. Fuel usage
Diesel [gaQ 205,500 gal
Other
ii . Peak.Load
iv. Average Load
v. Minimum Load
vl Efficiency
2,100
1,600
800
13 kWh/gal
vii. Future trends With a reliable electricity system in place, Ocean Beauty would expand its
operations and business, increasing its annual electricity demand to over
9,000MWh.
d) Annual heating fuel usage (fill in as applicable)
r. Diesel (gal or MMBtu) 20,000 gal
--~~------------------------------il . EJectricity (kWh)
2 The Railbelt srld connects ail customers of Chugach Electnc Assoc 1at1on, Homer Electric AssoCiation , Golden Valley Electnc
Assoc1ation, the City of Seward Electric Department, Matanuska Electnc Association and Anchorage Munic1pal Light and Power.
AEA 2014-008 Grant Applac.tlon 71112013
Renewable Energy Fund Round VII
Grant Application -Standard Fonn
ii i. Propane [ga l or MMBtu)
iv. Coal (tons or MMBtu)
Y. Wood [cords, green tons , dry tons )
vi . Other
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-tenewable fuels)
a) Proposed renewable capacity
(Wind , Hydro, Biomass, other)
[kW or MMBtulh r)
5, 700-8,300 kW Hydro
b) Proposed annual eledric:ity or heat production (fill in as applicable)
I. Electricity [kWh) 15,000,000 kWh -21,800,000 kWh
D. Heat (MMBtu)
c) Proposed annua l fuel usage fill n as applicable)
I. Propane [ga l or MMBtu]
ii. Coal [tons or MMBtu)
Iii. Wood or pellets (cords, green tons.
dry tons)
IY.Other hydro
Project Cost
a) T ota1 capital cost of new system $14.5 million -$38.3 million
b ) Development cost Included above
c) Annua l O&M cost of new system $386,000 -$756,000
d ) Annua l fuel cost $0
Project Benefits
a) Amount of fuel displaced for
l Electricity 205,500 gallons
------~------------------------------------ii. Heat 20,000 gallons
----~------------------------------------ii i. Transportation
b) Current price of displaced fuel
c) Other economic benefits
d) Al aska public benefits
AEA 2014-401 Grant Application
$3.97 I gallon
Increased employment opportunity for community,
potential lower electric costs for community if tie-in.
lnaeased tax revenues. lower carbon footprint,
cfeaner air
Page28of35 7/112013
Renewable Energy Fund Round VII
Grant Application-Standard Fonn
I Power Purchase/Sales Price
a) Price for power purchaselsale Expected range is $0.10/kWh-$0.20/kWh
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback (years)
AEA 2014-006 Gnnt Application
1.09 -1.43 (based on likely configuration and range for projected
demand)
10.25 years; revenues vary depending on demand scenario, which
provides a range of annual revenues; and costs vary based on several
likely configurations.
Page29of35 71112013
Renewable Energy Fund Rou nd VII
Grant Application -Standa r d Fonn
4.4.6 Impact on Rates
Briefly expla in 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 impad would be for both
pre and post PCE .
Electricity is not publicly available in the proposed benefit area. All electricity is generated by
individually from small diesel-powered generators. Therefore, no electrical rates are available
for comparison.
SECn ON 6-PROJECT BENEFIT
Explain the economic and publi c betreRts of your proJect. Include direct cost savings,
and h ow the people o f Alaska will benefit ftvm the ptOject.
The benefits information shou ld Include the following :
• Potential annual fuel displacement (ga llons and dollars) over the lifetime of the evaluated
renewable energ y project
• Antici pated annual revenue (based on I.e. a Proposed Power Purchase Agreement pri ce ,
RCA ta riff, or cost based rate)
• Potentia l additiona l annua l incentives (I.e. tax aedits)
• Potentia l additiona l annual revenue streams (I.e. green tag safes or other renewable
energ y subsidies or programs that mig ht be available)
• Discuss the non-economic bUc bef'lefi ls to Alaskans over the lifetime of the ntft!AM
Assuming a 50-year lifetime, the project is expected to displace over 10 million gallons of fuel,
costing approximately $50 million. Anticipated revenues is unknown at the time since there is
no proposed power purchase agreement in place, but the expected range of power price from
the Project is $31 -$61 per MWh. As a result, annual revenues may range from $270,000 to
$650,000, based on a variance of likely demand. There are no known potential additional
annual incentives or revenue streams. Some examples of the non-economic public benefits to
Alaskans over the lifetime of the project include a reliable source of eledricity on a continual
basis, cleaner air, and a reduced carbon footprint.
6.1.1 Public Benefit for Projects with Private Sector Sales
Projects that Include sales of power to pnvate sector businesses sawmUis, cruiSe sh1ps, mmes,
etc please provide a bnef descnpbon of the direct and indired public benefits denved from the
proJect as well as the private sector benefits and complete the table below See section 1.6 1n
the Request for Applicabons for more lnfonnation.
Renewable energy resource availability (kWh per month) 1 250 000-1,816,666
Estimated sales (kWh) 9,135,000 I year
Revenue for displacing diesel generation for use at $816,000 I year
private-sector businesses ($)
Estimated sales (kWh) 9, 135 000 I year
Revenue for displacing diesel generation for use by the $9,9001 year
Alaskan public ($)
I SECTION &-SUSTAINABIUTY
AEA 2014-008 Grant Application Page30of35 71112013
Renewable Energy Fund Round VII
Grant Application -Standard Form
Discuss your plan for operating the completed project so that it will be sustainable.
l ndude at a minimum :
• Proposed business structure(s) and concepts that may be considered.
• How you propose to finance the maintenance and ope1 ations for the life of the project
• Identification of operational Issues that could arise.
• A desaiption 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 bertefits
The business and operations plan will be developed as part of the feasibility study (See Section
3.2). Excursion Inlet is currently outside of a local utility ARC service area. To provide the best
operations scenario, the Borough will be looking at several options. One intriguing option could
be creation of a local energy service area governed by a local board. Other options indude
variations on an agreement with a certified utility for operations and maintenance, a
cooperative agreement that indudes Ocean Beauty Seafoods, or other viable option. Ocean
Beauty Seafoods will need to maintain backup power and swing load capabilities for their
operation. Backup power and infrastructure will be reviewed as part of the feasibility study.
Maintenance and operations will be financed through user fees. The operating costs and
ongoing support for existing systems will be considered during the development of an
operations plan.
The Haines Borough is committed to energy sustainability and reducing energy costs Borough
wide. Currently the Borough tracks usage, savings and benefits of energy management.
SECnON 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
The Haines Borough and their consultant recently completed the reconnaissance study and are
prepared to begin work immediately on the next phase of study. Furthermore, in meetings with
Ocean Beauty Seafoods and local residents, sustainable hydropower was discussed as a high
priority need for the community. We intend to complete feasibility phase of the project within the
timeline given in section 3.2
SEcnON 8-LOCAL SUPPORT AND OPPOSmoN
Discuss local support and opposition known or anbCipated for the project. lndude letter! 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
The Borough assembly passed a resolution in support of this grant application (see attached) and has
provided letters demonstrating local support, including from Ocean Beauty. Based on our
contacts in the community to date, we do not believe there is any opposition to the projects
should they prove feasible economically, and if environmental concerns are capable of
AEA 20t4-008 Grant Application Page31 of35 71112013
Renewable Energy Fund Round VII
Grant Application -Standard Fonn
satisfactory resolution. We intend to consult with the community on an ongoing basis as the
process of studying and possibly developing these projects moves forward
SEcnON 9-GRANT BUDG ET
Tell us how much ~ are sseldng in grant funds. Include any Investments to date and funding
souroes, how much Is being requested In grant funds, and acltlllonallnvestments ~ will male
as an applicant.
Provide a narrative summary regarding funding source and your financial commitment to the
project
The Reconnaissance Phase study was recently completed, with the support of Grant funding
from AEA, a cash investment by the Borough of more than $10,000, in-kind services from
Ocean Beauty Seafoods, and ancillary project work from the Alaska State Department of Fish
and Game. As a resutt of the study, it was determined that further study of five selected,
prospective-project alternatives, were warranted. These recommendations, coupled with
continued support of both the local community and the Borough Assembly for hydropower
development, has resulted in the completion of this grant application for funds to conduct the
Feasibility and Conceptual Design phase of work. The Borough remains committed to
furthering the study of this project and, as a result, is willing to make a cash contribution to the
overan project costs and continue to support the project management, with support from
Borough personnel and other in-kind services. It is anticipated that continued support in the
form of in-kind services from Ocean Beauty Seafoods will be received, as well.
Please provide a short narrative, and cost estimate, identifying the metering equipment, and its
related use to comply with the operations reporting requirement identified in Section 3. 15 of the
Request for Applications.
The costs presented in the table below are based on the scope of work identified in section 2.4
and described in section 3.2. Metering equipment may indude the installation of one or more
stream gaging stations, which was recommended in the Phase II Reconnaissance Study report,
recently prepared by ENVIRON International. It Is anticipated that all information gained from
the Reconnaissance study will be used as the basis for this phase of study.
AEA 2014-006 Grant Application h0132of35 711/2013
Re newable Ene r gy Fu n d Round VII
Grant Application -Standard Fonn ENERCJV AlJTHORfTY
Applications MUST include a separate wortsheet for each project phase that was identified in
section 2.3.2 of this application, (1. Reconnaissance, II. Feasibility and Conceptual Design, Ill.
Final Design and Permitting, and IV. Construdion 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 projed.
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 Grent Administrator,
Shawn Calfs, at scalfa@aidea .om.
Feasibility and Conceptual Deslan Study Budget
S...:.al
llllllc.l*lg
~~~II I d Gral*e FUIIda:
RE-.Fund CliiiiMn-• , ••or T..-eun~wn Grant F..-r, ••• ~ldF.JII .. TOT AU
Dale Fuadl Gna•Qt.r -~
(Ust milestones based on
phase and type of project s s s
See Milestone list bekwt. )
Project Scoping 2/15114 $0 $5,747 Ceshfrom $5,747 Borouah
Detailed Energy Resource 3115114 $66,340 $4,253 cash from $70,593 Analvsis Borouah
Identification of land and 4115114 $7,762 $0 $7,762 Regulatory Issues
Permitting and Environmental 6115114 $34,996 $0 $34,996 Analysis
Detailed Analysis of Existing
and Future Energy Costs and 3115114 $7 ,781 $0 $7,781
Martteta
Assessment of Alternatives 3115114 $12100 $0 $12100
Conceptual Design Analysis 5115114 $44,-462 $0 $44,-462 and Cost Estimate
Deta iled Economic and 3115114 $10,566 $0 $10,566 Financial Analysis
Conceptual Business and 4115114 $13,051 $0 $13,051 Operations Plan
Final Report and 6115114 $16,478 $0 $16,478 Recommendations
TOTALS $213536 $10000 $223536
: .
Direct Labor & Benefits $165260 $10000 $175260
Travel & Per Diem $15 337 $0 $15 337
Equipment $14 729 $0 $14 729
Materials & Supplies $515 $0 $515
Contractual Services $17 695 $0 $17695
Construction Services $0 $0 $0
Other $0 $0 $0
TOTALS $213 536 $10000 $223536
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Renewable Energy Fund Round VII
Grant Application -Standard Form
SECnON 10-AUTHORIZED SIGNERS FORM
Community/Grantee Name: HAINES BOROUGH
Regular Election is held: 1• Tuesday of October Date: September 23, 2013
Authorized Grant Signer'{s):
Printed Name Title Term
Mark Earnest Borough Manager N{A
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term
Mark Earnest Borough Manager
Grantee Contact lnfonnation:
Mailing Address:
Signature
tvn~~
Signature
PO Box 1209, Haines AK 99827
Phone Number:
(907) 766-2231
Fax Number: (907) 766-2716
E-mail Address: megm!SS!!bi!ID!!·Ik·YI
Federal Tax ID #: #470888706
Please submit an updated form whenever there Is a change to the above Information.
AEA 2014-006 Grant Application Page34of35 7/112013
Renewable Energy Fund Round VII
Grant Application -Standard Form
SECnON 11 -ADDmONAL DOCUMENT AnoN AND CERnFICAOON
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPUCAnON:
A. Contact lnfonnatlon, resumes of Appllcanrs Project Manager, key staff, partners,
consultants, and suppliers per application fonn Section 3.1 and 3.4. Applicants
are asked to provide resumes submttlad wtth 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 fonn Section 8.
C. For heat projects only: Most recent Invoice demonstrating the coat of heating fuel
for the bulldlng(s) Impacted by the project
D. Governing Body Resolution or other fonnal action taken by the appllcanfs
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. CERnFICAnON
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 Mark Earnest
Signature ~J).Lt
Title Haines Borouah Manaaer
Date ~(t3 {1-o~~
AEA 2014-006 Grant Application Page35of35 7/112013
I
L_
HAINES BOROUGH, ALASKA
RESOLUTION No. 13-09-496 Adopted
A RESOLUTION OF THE HAINES BOROUGH ASSEMBLY SUPPORTING A
FEASIBILITY GRANT APPUCATION THROUGH THE ALASKA ENERGY
AUTHORITY ROUND VII RENEWABLE ENERGY FUND FOR HYDROELECTRIC
POWER IN EXCURSION INLET.
WHEREAS, the Alaska Energy Authority (AEA) Is accepting applications for renewable energy
projects through the. Renewable Energy Grant Fund -Round VII; and
WHEREAS, applications are due on September 24, 2013; and
WHEREAS, the AEA requires that the applicant demonstrate fonnal approval and endorsement
of Its project by Its governing authority-for this project, that would be the Haines Borough
Assembly; and
WHEREAS, eligible activities through the Renewable Energy Grant Fund Include feasibility
studies, reconnaissance studies, energy resource monitoring, and/or work related to the design
and construction of an eligible project; and
WHEREAS, the Borough received a grant from the Alaska Energy Authority (AEA) In round IV of the
Renewable Energy Grant Fund to conduct a preliminary feasibility study fOr hydroelectric power at
Excursion Inlet; and
WHEREAS, the Borough entered Into a professional services agreement with ENVIRON
International Corporation (ENVIRON) to conduct the preliminary feasibility study for hydroelecb1c
power generation development at Excursion Inlet In an amount not to exceed $101,115; and
WHEREAS, Phase I and Phase U of the ENVIRON study has been completed; and
WHEREAS, based on the findings of the preliminary feasibility study, additional t'easfblllty analysis Is
warranted; and
WHEREAS, the proposed feasibility study will further Investigate potential hydroelectric
projects the purpose of providing reliable, lower-cost power to the Ocean Beauty fish processing
fadllty and existing and future residential subdivisions at Excursion Inlet; and
WHEREAS, this project Is consistent with Objective 15M of the Haines 2025 Comprehensive
Plan which states: •Develop renewable energy sources sufffdent ro meet current and future
year residential, institutional, commercial, and industrial needs In the Hafnes Borough,
[induding] feasibility studies and other technical ~ssessments that will lead ro development of
additional larger renewable or dean power sources in the Borough, particularly projects that will
reduce or stabilize power costs to consumers [snd] support and protect energy production at
existing hydro facilities ... or planned fadllty at North Creek In Excursion Inlet,•
NOW THEREFORE BE IT RESOLVED the Haines· Borou~h Assembly supports the application for a
hydroelectric power generation feasibility study and authorizes the borough manager to sign all
grant application documents.
ADOPTED BY A DULY CONSTlTUTED QUORUM OF THE HAINES BOROUGH ASSEMBLY THIS
101t1 DAY OF SEPTEMBER, 2013.
EES consulting
Don Jarrett
Klrtdand, WA 98033
Dear Mr. Don Jarrett,
September 10, 2010
Ocean Beauty is very excited at the prospect of the Hydropower option finally being pursued here at
Excursion Inlet. We are pfeasad to see this option being considered for the community. We have for a
long time now tried to convince others that the Hydropower options at Excursion Inlet made a lot of
environmental and economic sense. With energy cost going up and demand both at our factory and the
increased population of the community the reasons for moving to hydro power are now magnified from
where they were 7 years ago when we first took over the operation and started promoting the need for
a renewable energy source.
For many years we have looked for ways to extend our operating seasons and expand the fishertes we
participate in. But the cost of energy has always created large operating lnetftclencles In the low volume
fisheries. These are typically fishery where the local fleets are the primary participants operating out of
the surrounding communities. The lower cost energy generated by hydropower will allow us to pursue
these fisheries providing markets to gDinet and troll fishermen from the beginning to the end of the
season. Additionally, the efficient source of electricity provided by hydropower wiD allow Ocean Beauty
to offer markets to fall and earty spring long line fishennen, as well as local crab fishermen.
With an efficient power source more value added operations could be-developed providing additional
employment opportunities as well as longer pertod of employment. The raw matertals generated by the
fishing fleets delivering their catches to the Ocean Beauty plant at Excursion Inlet are some of the
highest quality seafood products harvested In Alaska n:t lend themselves to being further processed
into high quality table ready products. But the complications of generating the additional power needed
to run the equipment for such operations has presented several hurdles. Not only fa the cost of
producing the power a significant consideration but we also have some environmental regulations to
overcome. Being situated on the boundary with the Glacier Bay National park has created limitations on
the amount of horsepower and gallons of fuel per year we are allowed to-operate and consume.
Hydropower will minimize the majority of the concerns Identified above offering Ocean Beauty and
others at Excursion Inlet the opportunity to grow their business and increase the amount of processing
activity preformed at Excursion Inlet We want to extend our full support to the Haines Borough In their
pursuit of an efficient source of Hydropower at Excursion Inlet We also want to thank and commend an
those associated with this effort for their progressive and forward thinking approach to this issue,
especially, the Mayor, the Borough Manager and the Borough council.
Sincerely
David Forbush
VIce President of VA and Manufacturing
Ocean Beauty Seafoods LLC
"-: 206 286 S691
E'.IMil: Da¥id.~ abaaly.com
1100 W. EWING ST.• P.O. BOX 70739 • SEATILE, WASHINGTON 98107 • (208) 285-6800 • FAX (206) 285-8190
Bruce's Trading Post
Excursion Inlet South
Excursion Inlet, Alaska 99850
FCC GROL #PG-13-10449 Naber CTRT #002984
FFL#9-92-110-01-3E-06797 Phone (907)771-4830
Internet bruce@btpost.net
DATE: 9/10/10
Jan Hill, Mayor, & Borough Assembly
Haines Borough
P.O. Box 1209
Haines, Alaska 99827
This letter is in responce to an inquiry by Deborah Schnabel
concerning local Rsident and Property Owner, responce to a Borough
Proposed Grant Application, to study a possible Hydroelectric
Generation Plant here at Excursion Inlet. I have talked to a number
of folks here, and via phone & email, listed below, concerning the
proposed Grant application, since receiving the inquiry.
There have been no negative responces to such a Grant
Application, and only one neutral responce. Most folks would
welcome such a study to be done, to give the community an
oppurtunity to see if such a project is feesable, and makes economic
sense.
There is one concern that was fairly common among the
respondents, and that was, "If such a project was to be built, there
should be a "Plan" for extending the Power produced to the local
Borough Subdivisions, in Excursion Inlet, Ak, in the long term schem
of things." Some responders would NOT support, a Cannery only,
project that leaves the local residents, without infrastructure
improvements, in the long term.
With the Long Term, Southeastern Intertie Power Grid being
proposed in the region, a connection to that Intertie, would make
excess power generated here, available for sale to other Users on
the Intertie, and revenue from such sales, used for maintainance of
the project, and to extend the local electrical infurstucture to the
Excursion Inlet, Ak subdivisions.
We would like to be kept informed as to the progress of the
Grant application, and any subsequent Study, when completed.
Sincerely.
Bruce's Trading Post
Excursion Inlet South
Excursion Inlet, Alaska 99850
FCC GROL #PG-13-1 0449 Naber CTRT #002984
FFL#9-92-110-01-3E-06797 Phone (907}771-4830
Internet bruce@btpost.net
DATE: 9/10/10
for, and in behalf of:
Chuck & Fay Elliott, Russel & Shelly Ables, Doug & Laura Vivian
John & Anita Crabill, Tom & Betsy Bear, Bruce & Debora Gordon
Adan & Haley DesRosiers, Jack Campbell, Matt Campbell, Wayne Lonn
MacDonald Franklin & Sons, Clyde & Kathy Shafer, Paul Dillon
Bob Newsome