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HomeMy WebLinkAbout1004 Karluk Tribal CouncilRenewable Energy Fund Round VII Grant Application -Standard Form 1:;, AI ~ a lOOt{ ~ENERGY AUTHORITY 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 satisfied 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. 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 ~~ . AEA 2014-006 Grant Application Page 1 of27 7/2~/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I ·.AI AA·~ _ -=:> ENERGY AUTHORITY SECTION 1 -APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Karluk Tribal Council Type of Entity: Government -Tribal Council Fiscal Year End June 30 2013 Tax ID # 92-0071173 Tax Status: __x__For~orofit or non-orofit { check on~)__ Mailing Address Karluk Tribal Council P.O. Box22 AK 99608 Telephone I Fax (907) 241 2218 (907) 241 2208 Physical Address Karluk Tribal Council P.O. Box22 AK 99608 Email A961vnn(iilaol.com 1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER Name Title Alicia Andrew President Mailing Address Karluk Tribal Council P.O. Box22 AK 99608 Telephone J Fax Email (907) 241 2218 907) 241 2208 A961vnn®aol.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 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 its project by its 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. Yes 1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached grant form. http://www.akenergyauthority.org/veep/Grant-Template. pdf (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. AEA 2014-006 Grant Application Page 2of27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form /~A' ABffii t ~ENERGY AUTHORITY SECTION 2-PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title-(Provide a 4 to 5 word title for your project) KARLUK TRIBAL COUNCIL-WIND ENERGY SYSTEM 2.2 Project Location - Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. Karluk Alaska 99608 ' 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. Latitude and lonQitude coordinates of proposed wind turbines: N57.33.22.9" W 154.26.51.5" 2.2.2 Community benefiting-Name(s) of the community or communities that will be the beneficiaries of the project. Karluk Alaska ' 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type X Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas X Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction Reconnaissance X Design and Permitting X Feasibility Construction and Commissioning X Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. Karluk is located on the west cost of Kodiak Island in Alaska. The village is cut-off from any road system. Fuel oil has to be shipped by barge to Karluk. Therefore, it is a high energy cost village with fuel oil at 4.92 $/gal. This project will perform a feasibility study and complete the design & permitting for a wind energy system and a heat recovery system to serve the existing power plant in Karluk, Alaska. For the wind energy system, wind data from a meteorological monitoring tower already installed at the proposed wind turbine location will be available for the analysis and design. The wind energy systems would consist of wind turbines installed on the mountain 0. 7 miles south of the existing power plant, the transmission line to the power plant, and the electric boiler for excess energy utilization. The heat recovery system would consist of upgrading the existing power plant generators with waste heat recovery units and installing a total length of up to 100011 hydronic heating loop to connect the power plant with the community buildings. AEA 2014-006 Grant Application Page 3 of27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I ·. ALA£~ 3 ~ENERGY AUTHORITY 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, etc.) Renewable energy is more cost efficient than the existmg diesel generating system. The price of hydrocarbons is likely to increase in the future, which would impact the cost of operating a diesel-based system. A strong wind resource is available in Karluk and should be pursued. The goals and objectives and performance measures of the proposed grades to the Karluk village energy distribution system will be as follows: • Upgrading the generators by installing a waste heat recovery system • Utilize the rich wind resources in the Karluk area to produce up to 50% of the tribe's annual electricity consumption • New hydronic heating loop will connect the power plant with community buildings and utilize generator waste heat and wind excess heat • Decrease the tribe's heating fuel oil consumption by up to 39% • Reduce the tribe's total fuel oil consumption (for electricity and heating) by up to 48% • Solve Karluk's power plant generator capacity issue by replacing some of the electric heaters in the community buildings with waste heat and integrating wind turbines • Making affordable heat available to the commercial and community buildings will reduce their dependence on the fuel oil, electric heaters and fire wood. • Less energy costs and the sustainable way of using renewable resources and waste heat will make Karluk more attractive as a place to live • Subsistence and sustainable energy infrastructure go hand in hand and students get to experience the benefits of wind power and waste heat recovery in their own village An overall payback of about 12 years is possible. 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. Use of grant funds for this project will greatly reduce the village energy costs. Total cost of the project is estimated at$ 1 ,300,000. The grant application is for$ 1 ,000,000. The applicant proposes to contribute $300,000 towards project costs from a combination of land made available for this project as well as labor and material\equipment contributions in the administration, permitting, and construction phases. 2.7 COST AND BENEFIT SUMARY Include a summary ofgrant.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. $81,000 2.7.2 Cash match to be provided $0 2.7.3 In-kind match to be provided $300 2.7.4 Other grant applications not yet approved $0 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $81,300 AEA 2014-006 Grant Application Page4of27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form ··--=> A' &S%. I~ ENERGY AUTHORITY Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.6 Total Project Cost (Summary from Cost Worksheet $1,300,000 including estimates through construction) 2.7.7 Estimated Direct Financial Benefit (Savings) $190,000 year (fuel savings) 2.7.8 Other Public Benefit (If you can calculate the benefit in $ NIA terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5.) SECTION 3 -PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). 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. Michael Hauke with Renewable Energy Engineering, LLC will be the project manager. He is a professional mechanical engineer and holds a Master of Science in Engineering Management Michael has long time experience managing construction projects. His resume is attached to the application. 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in in your project along with estimated start and end dates for each of the milestones and tasks. Please clearlv identifv the beainnina and end ina of all chases of vour orooosed oroiect. Project implementation will start immediately upon execution of agreement AEA 2014-006 Grant Application Page 5 of27 7123/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I . ·.. A LBrS'A\ 7 ~ENERGY AUTHORITY FEASIBILITY STUDY Milestones Tasks Start Date End Date 1.0 Project Project scoping, solicit consultants, gather Scoping/contractor July August solicitation resources 2014 2014 Site-specific assessment of available energy resource following industry standards usually based 2.0 Detailed energy on field measurements, discussions with resource owners, and other onsite activities. Examples of resource analysis assessment activities include collection and analysis of meteorological tower data at proposed wind turbine locations (meteorological tower was already August December installed by REE) · 2014 2014 Obtain authorizations from all applicable agencies 3.0 Identification of for any use of land or resources for feasibility land and regulatory activities; Assessment of site control requirements issues for proposed project; Authorization from land August October owners for onsite feasibility activities as needed 2014 2014 Site-specific assessment of resources that may be 4.0 Permitting and significantly affected. Examples include wildlife environmental habitat assessment, historical sites investigation, analysis etc.; Plan for addressing potential environmental September October impacts 2014 2014 5.0 Detailed Preliminary energy purchase or sales agreement analysis of existing & future energy September November costs/markets 2014 2014 6.0 Assessment of Identification and analysis of system alternatives; alternatives Recommended alternative including discussion of September November impacts on existinQ system 2014 2014 Existing Energy System Annual load profile; Load growth projections; Transmission system layout and capacity; Retirement schedule 7.0 Conceptual Proposed Energy System design analysis and Assessment of project site, including geotechnical cost estimate characteristics as necessary; Annual energy production profile; Conceptual system design; Conceptual integration design; Identification of remaining technical barriers; Conceptual level cost estimates for final design and September November construction; Annual O&M and fuel costs 2014 2014 8.0 Detailed Detailed analysis of revenue from energy sales, economic and tax credits, financial analysis green tags, and other incentives; Discussion of non-September November monetary benefits 2014 2014 9.0 Conceptual Prepare conceptual business and operations plan business and October November operations plans 2014 2014 Deliverable: Final Feasibility Study , comprehensive 10.0 Final report economic and financial analyses of alternatives, and recommendations for project design and recommendations construction activities, and draft operational and November December business plan 2014 2014 AEA 2014-006 Grant Application Page 6 of27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I · .. A' OO~A -=>ENERGY AUTHORITY DESIGN & PERMITTING PHASE Milestones Tasks Start Date End Date 1.0 Project scoping and contractor Project scoping, solicit consultants, October January solicitation for planning and design gather resources 2014 2015 2.0 Permit applications (as Complete permit applications (as December February needed) needed) 2014 2015 3.0 Final environmental Get all environmental issues December February assessment and mitigation plans resolved; Prepare environmental 2014 2015 (as needed) plan 4.0 Resolution of land use, right of Obtain final land use authorizations December February way issues (as needed) if needed 2014 2015 5.0 Penmit approvals Complete all permitting, right of December February wavs, site controls 2014 2015 Renewable Energy Resource: January April Updated data to confirm that 2015 2015 resource is still available Existing Energy System: Final engineered and approved 6.0 Final system design energy system configuration including upgrades Proposed System Design: Final engineered and approved system design; Final engineered and approved integration design Interconnection studv 7.0 Engineers cost estimate Finalize engineer's estimate of February May I project cost 2015 2015 8.0 Updated economic and Detailed financial analysis based on May June chosen business structure and 2015 2015 financial analysis applicable costs, revenues, and incentives 9.0 Negotiated power sales Get executed power purchase/sales May July agreements with approved rates agreement 2015 2015 1 0.0 Final business and Finalize operational and business June July operational plan plan 2015 2015 3.3 Project Resources Describe the personnel, contractors, accounting or bookkeeping personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. AEA 2014-006 Grant Application Page 7 of27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I ~ AI ASW«A 2 -)ENERGY AUTHORITY The Karluk Tribal Council will hire Renewable Energy Engineer, LLC (REE) to help with project management as well as mechanical and electrical engineering. REE's engineering work will include: -Mechanical Engineering for Heat Recovery System and Wind Turbine Design -Electrical Engineering for Heat Recovery System and Wind Turbine Switchgear Design (Determine appropriate interconnection requirements and specify switchgear, communications, and system controls equipment required for an integrated wind-diesel hybrid power system) REE teamed up with Q Engineers for electrical engineering services in the the Pilot Point Wind-Diesel Hybrid Power System and many other projects requiring mechanical/electrical engineering services. Q Engineers has pledged to support the project with electrical engineering design work. Statement of Qualifications and key employee resumes are attached to this application. The Karluk Tribal Council and REE is committed to working with local stakeholders, including the Alutiiq Power Company, Kodiak Island Borough, and Koniak Corporation. 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. Renewable Energy Engineering, LLC's (REE) project manager will provide direct oversight of all aspects of the project and will provide monthly or quarterly status reports by email (or other methods allowed by the Authority, if email is not available) to the Authority's project manager. The report will update the Authority on the project's progress, regulatory and compliance issues, possible delays, and grant expenditures during the quarter. The progress reports will summarize in one or two pages the progress made on grant tasks during the previous period and identify any difficulties in completing tasks or meeting goals or deadlines. REE will also include with the report copies of any work products due to the Authority. A Project Plan will be developed at the conclusion of the Planning phase of the project. It is a detailed document comprising: 3.5 Project Risk Discuss potential problems and how you would address them. The project is low-risk, in terms of budget, timeline, and product. The potential problems and plans to address them are as follows: Project Delays: Minor projects delays due to procurement of required equipment to complete renovations might occur. This can be limited by coordinating with the contractors and by considering longer lead times in the construction phase schedule. Site Control/Access: Until today, there is no site access to the wind turbines. This will have to be provided. This can be done by installing a 4-wheeler trail. Weather: Weather could delay the installation of the wind turbines on the mountain. However, this can be limited by allowing enough time in the construction schedule, selecting the right construction season and choosing contractors that have long term experience in Alaska weather conditions. Local stakeholders, the Alutic Power Company and the Karluk community support renewable energy development and will endeavor to create an atmosphere of success. If any unidentified conflicts arise, the REE project manager will immediately address all concerns and communicate possible resolutions with all stakeholders and the authority. AEA 2014·006 Grant Application Page 8of27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I ·. AI AW:A $ ~ENERGY AUTHORITY 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. Wind Energy Renewable Energy Engineering, LLC (REE) has installed a monitoring tower on a 1000 It high mountain south-west of the village center and power plant. This was to done to confirm the wind resource characteristic that was found in the AEA -Alaska Wind Speed Map. The Alaska Energy Authority (AEA) provided a wind map for the Karluk area. According this map, the mountain location selected should be in the Wind Speed Class 5 (Excellent) -7 (Superb). This equates to an average wind speed of 7.5-8.8 m/s. Based on the estimates, Karluk mountains are a great wind resource and offer optimal conditions for developing a wind turbine energy system. The first step is to complete a full year of wind data monitoring and analyze the wind data. It is assumed that more than 500kW of wind energy resource is available along the mountain range. At the moment only 44kW are assumed to be allowed to develop per AEA. Theoretically, up to 80% of the village heating requirements could be met by developing more than 44kW of this wind resource. If allowed, the applicant would like research this alternative in the feasibility study. Waste Heat Recovery There are two (2) Katolite 55kW generators in the Karluk power plant, one is used for backup. There are being alternated to allow for frequent generator overhaul on both engines. The current generator setup only uses the electric power produced with an efficiency of 36%. The remaining energy is wasted in engine cooling, exhaust gas and radiation. By installing a waste heat recovery system most of the thermal loss (almost 49%) can be reused for building heating. By using the heat that the radiator ejects for cooling the engine and heat from the exhaust gas, the system efficiency can be increased and fuel savings of up to 35% are possible. Waste heat recovery systems on generators are readily available and are easy to install. The waste heat from the generators can be used to help heating the school, the tribal council office, the city hall, and the lodge. The waste heat can also be used to heat the water treatment plant, which is currently unheated. Its location is perpendicular to the power plant Renewable energy and waste heat are more cost effective than the existing diesel generation system. The price of hydrocarbons is likely to increase in the future, which would impact the cost of operating diesel-based power system. The following is a break down of the electricity and fuel oil saving opportunities: With the waste heat recovery system, up to 5000 gal of heating fuel can be saved per year. With the wind energy system, up to 11,000 gal of fuel oil can be saved annually in the power plant electricity production. In addition, up to 2050 gal of fuel oil can be saved by using the excess wind energy for heating. Thus, up to 13,050 gal of fuel oil can be saved with wind energy. All together, a fuel oil replacement of up to 18,000 gal is possible, which represents about 45% of the AEA 2014-006 Grant Application Page 9 of 27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I ~ AI A9Fht\ 1 ~ENERGY AUTHORITY annual fuel usage. At a current fuel oil price of $4.92 per gal, the annually saved cost is up to $90,000. With a total project cost of $1.3 Mill a project payback of 12 years can be possible. (This doesn't not included the land value that is already owned by the Karluk Tribal Council and is made available for this project) All predicted fuel oil savings were estimated using the Homer Energy Software, Windographer, and MS Excel. 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. The Karluk power plant is located in the center of the village about 0.6 miles from the landing strip. There are two (2) Katolite 55kW diesel generators in the Karluk power plant, one is used for backup. The efficiency of the 2005 replaced generator set is 12 kwh/ gal. There are being alternated to allow for frequent generator overhaul on both engines. The current generator setup only uses the electric power produced with an efficiency of 36%. The remaining energy is wasted in engine cooling, exhaust gas and radiation. The manually controlled generator switchgear includes Woodward governors. Fuel Injection is mechanical. The governors could be reused in a switchgear lineup, however, new equipment could also be installed. Village distribution wiring is mainly copper. Routing is partly buried and partly overhead. Currently, the power plant supplies the school, 2 lodges, tribal council office, city hall & clinic, fire house, water treatment plant and 14 residential homes. Heating and domestic hot water is provided via fuel oil furnaces, fuel oil space heaters and several electrical space heaters. Only the school has an air handling system. Karluk consumes up about 39,000 gal fuel oil annually. 21,000 gal of this amount is used by the power plant generators to produce electricity. 18,000 gal of this amount is used as heating oil by 13 residential homes, and 10 commercial buildings and 2 community facilities. The school, a commercial building used 6,000 gal of heating oil per year. The power plant produces about 252,000 kWh annually. 37,000 kWh of this amount is the electrical system & line loss. About 215,000 kWh are sold to costumers. 85,000 kWh is used by 14 residential homes. 130,000 kWh is consumed by 10 commercial buildings and 2 community facilities. 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. Karluk is located directly at the west coast of the Kodiak Island. Karluk higher elevations are characterizes by strong winds from the ocean. A strong river hydroelectric source is theoretically available as well, however, it is a salmon carrying stream and therefore currently expelled from hydroelectric development. The integration of the renewable energy power systems into the existing infrastructure will be addressed in detail in order to properly control all generating assets. A new buried transmission line will need to be built between the wind turbines and power plant. The design will consider uncomplicated systems which will help with the system operation and maintenance over the long term. Operator training will still be necessary as the village maintenance personnel do not have the technical and material resources that urban developers are accustomed to. The Karluk Tribal Council is aware of this fact and will address it. AEA 2014-006 Grant Application Page 10 of 27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form 4.2.3 Existing Energy Market I , AI &9"'1 7 -=>ENERGY AUTHORITY Discuss existing energy use and its market. Discuss impacts your project may have on energy customers, There used to be more people living in Karluk, There was a large fish processing manufacturer right there the Karluk river enters the ocean, The area was overfished and the manufactures were closed and abandoned. The village used to be centered close the shore line. Most of the buildings were subject to destruction by storm and flooding. A new Karluk subdivision was built further away from the ocean. This is now the center of Karluk and home for less than 50 people. Currently, the power plant supplies the school, 21odges, tribal council office, city hall & clinic, and 14 residential homes. The electrical market is Karluk is regulated through the State of Alaska. The power plant in Karluk is owned and operated by the Alutiiq Power Company. The average electrical loads are between 32 and 40kW. Occasional peaks over 56kW caused by the extended us of space heater have led to generator shut downs. Karluk consumes up about 39,000 gal fuel oil annually. 21,000 gal of this amount is used by the power plant generators to produce electricity. 18,000 gal of this amount is used as heating oil by 13 residential homes, and 10 commercial buildings and 2 community facilities. The school, a commercial building used 6,000 gal of heating oil per year. The power plant produces about 252,000 kWh annually. 37,000 kWh of this amount is the electrical system & line loss. About 215,000 kWh are sold to costumers. 85,000 kWh is used by 14 residential homes. 130,000 kWh is consumed by 10 commercial buildings and 2 community facilities. The price of electricity is currently 0.71 cents, which is the base rate. This is the rate all commercial customers pay. Residential customers do qualify go the State's power cost equalization program (PCE), which subsides residential customers. The power plant is a good condition. The existing electrical infrastructure is functional. The Alutiiq Power Company fully supports the waste heat recovery system integration and the wind turbine system. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods The project includes upgrading the existing power plant with waste heat recovery units and connecting the community buildings to the hydronic waste heating loop. Further, medium scale wind turbines will be installed on the nearby mountain. A buried power line will connect the turbines with the power plant. System Design/ Description of Renewable Energy Technology Specific to Project Location/ & Optimum Installed Capacity Wind power: An analysis of the wind resource information indicates that four (4) Gaia 11kW turbines, with 60ft AEA 2014-006 Grant Application Page 11 of 27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I · .. A' 4 SiiA a -=:J ENERGY AUTHORITY galvanized monopole tilt-up tower, would have a potential cross annual energy production of 213,000 kWh. REE installed a monitoring tower on the 1000 It mountain about 0.6 miles south-west of the village center and power plan. If the data proofs that this is a suitable location, the wind turbine towers would be installed where the monitoring tower is located now. For the electrical connection between power plant and wind turbines, less than 0.7 miles of buried transmission line will be installed. There will be controls and switch gear in the power plant bank to manage power balances due to fluctuations in wind power and electrical load. There will also be an electric boiler to absorb excess wind energy to be used in the hydronic heating loop. Waste Heat Recovery in Generator Building : There are two (2) Katolite 55kW generators in the Karluk power plant, one is used for backup. There are being alternated to allow for frequent generator overhaul on both engines. Waste heat recovery systems will be installed on both generators. The waste heat recovery system will utilize the heat from the stack gas and jacket water to generate up to 270 MBH heat at full load. The waste heat from the generators can be used to help heating the school, the tribal council office, the city hall, and the lodge. The waste heat can also be used to heat the water treatment plant, which is currently unheated. Its location is perpendicular to the power plant. There will be a total length of up to 1 0001! of buried hydronic heating loop connecting the waste heat consuming community buildings with the power plant. The hydronic heating loop consists of two insulated pipes for supply and return, which are buried a min of 4ft below the surface. A combination of wind energy and waste heat system makes sense. The waste recovery system on the generators makes sure that most of the generator rejected heat is used for heating the buildings connected to the hydronic heating loop. In order to serve several buildings on the hydronic heating loop, a greater heat source is needed. This gap can be filled with excess wind energy. Excess wind energy is the energy not used in the village grid. Generator and wind turbines feed into the power control unit. The switchgear and power control unit make sure that the grid is always balanced. Any excess energy from the wind turbines is routed to the electric boiler. The Karluk power plant generator is at times maxed out and occasional shut downs occur when the maximum capacity (55kW) is reached. Therefore, a power plant upgrade is recommended. However, instead of upsizing the generator, a solution can be found by integrating wind turbines and a battery bank as well as replacing of some of the electric heaters in the community buildings with waste heat. Code Compliance All mechanical and electrical systems will be designed in accordance with the most current building codes and building safety standards and guidelines including international building code, international mechanical code, international fire code, national electric code, and Ashrae building standards. Anticipated Barriers No "show-stopper'' issues were found in the initial phase of the village energy analysis and system integration. Anticipated Capacity Factor: Anticipated Annual Generation: Basic Integration Concept Page 12 of 27 Renewable Energy Fund Round VII Grant Application -Standard Form Diesel Fuel Use with Wind and Waste Heat Annual Fuel Oil Savings l :s A' Aa&;l $ -=>ENERGY AUTHORITY 20,000 gal 19,000 gal Residential buildings and some community buildings are currently not planned to be connected to the waste heat hydronic loop. Theoretically, the wind resource available in Karluk allows for supplying heat to buildings in Karluk. This would require a higher wind capacity, a larger electric boiler and an extended hydronic loop. A higher amount of fuel would be saved. If AEA is open for this option the applicant will gladly research this opportunity in the feasibility study. Deliverv Methods A buried transmission line will need to be installed to connect the wind turbines with the power plant. Power from the power plant is anticipated to be delivered through the existing distribution systems. Specific recommendation will be developed as part of this study. 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. All of the land and infrastructure required for the project are privately owned by either the Karluk Tribal Council or the Koniak Corporation, an Alaska Native regional corporation. Both entities support renewable energy development in Karluk. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. • List of applicable permits • Anticipated permitting timeline • Identify and discussion of potential barriers The permitting for this project will be successful since there are no environmental conflicts. There are no wetlands anywhere within or near the project area. The coastal zone management program is currently unenforceable. There no endangered species within the project area. There no historical resources anywhere within or close by the project area. The existing historical properties in Karluk are located outside the critical 1 mile radius. There are no brownfields in the project area. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: • Threatened or Endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barriers • Threatened or Endangered species I Habitat issues According to the U.S Fish and Wildlife Service department there are no threatened and endangered species in Karluk or in the project area. The U.S. Fish and Wildlife Service (Service), designate critical AEA 2014-006 Grant Application Page 13 of 27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I ~ ALAQBf~ 3 -=:>ENERGY AUTHORITY habitat for the Alaska-breeding population of the Steller's eider (Polysticta stelleri), a threatened species listed pursuant to the Endangered Species Act of 1973, as mended (Act). Critical habitat for the Alaska- breeding population of the Steller's eider includes breeding habitat on the Yukon-Kuskokwim Delta (Y-K Delta) and 4 units in the marine waters of southwest Alaska, including the Kuskokwim Shoals in northern Kuskokwim Bay, and Seal Islands, Nelson Lagoon, and lzembek Lagoon on the north side of the Alaska Peninsula. Another endangered bird species under the the Endangered Species Act of 1973 is the short- tailed albatross (Phoebastria albatrus). The species occurs in waters throughout the North Pacific, primarily along the east coast of Japan and Russia, in the Gulf of Alaska, along the Aleutian Islands and in the Gulf of Alaska south of 64° north latitude. At the time of our 2000 final listing rule, the short-tailed albatross population consisted of about 1,200 individuals known to breed on two islands: Torishima, an active volcanic island in Japan, and Minami-Kojima, an island whose ownership is under dispute by Japan, China, and Taiwan. The coastal zone management program is currently unenforceable. • Wetlands and other protected areas There are no wetlands anywhere within or near the project area. Small freshwater emergent and freshwater forest/shrub wetlands exist 0.5 miles south from the wind turbine location. The wind turbines however, will be located on 1000 It high hill, whereas the wetlands are in a valley. The wetland data was taken from the U.S. Fish and Wildlife Service's National Wetland Inventory website (http://www.fws.gov/wetlands/). • Archaeological and historical resources There no historical resources anywhere within or close by the project area. The existing historical properties in Karluk are located outside the critical 1 mile radius. There are two historic properties in Karluk: The orthodox church built in 1888, the building was added to the National Register of Historic Places on June 6, 1980, and the Karluk sandspit with the remains of the late 1800s cannery and village. The project area including the existing power plant upgrade and new wind turbines as well as buried transmission line is outside of the one-mile radius. • Land development constraints There are no brownfields in the project area. All of the land and infrastructure required for the project are privately owned by either the Karluk Tribal Council or the Koniak Corporation, an Alaska Native regional corporation. Both entities support renewable energy development in Karluk. • Telecommunications interference There are no telecommunication interferences anticipated in this project. • Aviation considerations The wind turbines are far enough from the airport. Thus, there would likely be no FAA permitting requirements associated with this project. • Visual, aesthetics impacts and other potential barriers Renewable energy systems are supported in the Karluk community. A general acceptance of the wind turbines up the mountain is expected. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) AEA 2014-006 Grant Application Page 14 of 27 712312013 Renewable Energy Fund Round VII Grant Application -Standard Form 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, mdustry standards, consultant or manufacturer's estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds -loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Proiected development cost of proposed renewable enerav system The total anticipated project cost is $1.3 million-$1.7million ($1.7 million if more buildings are to be connected to the hydronic heating loop and more wind capacity is installed). The project costs includes approximately $81,300 in developing cost (feasibility, design, and permitting), and a construction cost of about$1.2 million to $1.6 million ($1.6 million if more buildings are to be connected to the hydron1c heat1ng loop and more wind capacity is installed). The applicant is requesting $81,300 to cover the entire feasibility study and design & permitting phase. For these initial phases, the applicant will provide about $10,000 as mixtures of cash and in-kind services. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not .eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) This proposal is for engineering studies and design services only. There are no operating and maintenance cost associated with this project stages. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price-at a minimum indicate a price range • Proposed rate of return from grant-funded project The Karluk power plant is operated by the Alutiiq Power Company, which is owned by the Karluk tribal council. The wind turbine power will be fed into this power plant. The potential buyer will be the Karluk village commercial and residential customers. The electrical rate will be determined during the completion of the resource analysis. The rate of return for this project will depend on the wind data collected. It is assumed to be about 8%. (This doesn't include the land value since the land already owned by the Tribal Council and contributed to this project). A higher rate of return is possible if a larger wind capacity is installed and more buildings are connected to the hydronic loop. AEA 2014-006 Grant Application Page 15 of 27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form 1.-J A I 'WilkiA 2 -=:l ENERGY AUTHORITY 4.4.4 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. 500kW or greater (if more than 44kW is allowed to be developed the wind resource could also be used for a larger fraction of village heating load) Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank) i. Number of generators/boilers/other ....::.2~d~ie:.::s:.::el~g~e~n:.::er:.::a:.::to:.::rs.::_ _________ _ ii. Rated capacity of generators/boilers/other 2 x 55kW (they at being alternated) iii. Generator/boilers/other type Diesel ~~------------- iv. Age of generators/boilers/other _6:_+_y!..:e::-a:::.rs.::_ ___________ _ v. Efficiency of generators/boilers/other _1~2=-k:.::W=h.:./~g:.::al:.::o:.::f.:..fu:.::e.:.l __________ _ b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $14,000 ~~~~-~~~~----------ii. Annual O&M costfor non-labor $110,000 (including $104,000 for fuel expenses) c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] :.::2:::5:.:2:.::,0:.::0~0.:.kW.:.:.::h~------------------- ii. Fuel usage Diesel [gal] 21,000 gal Other N/A iii. Peak Load 63kW iv. Average Load 34kW v. Minimum Load 25kW vi. Efficiency 12 kWh I gal of fuel vii. Future trends Upwards 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal light and Power. AEA 2014-006 Grant Application Page 16 of 27 7/23/2013 ~··· i Renewable Energy Fund Round VII Grant Application -Standard Form d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] _1:_:B~,O:..:O~O_,gcca_l ---,-------·-· ··_·" _____ _ 45,000 kWh (estimated) ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other N/A N/A N/A N/A Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] 44 kW (if more than 44kW is allowed to be developed the wind resource could also be used for a larger fraction of village heating load) b) Proposed annual elect[icity or.heatproduction (fill in as applicable) i..i;;lecttfcity11<Wh] ---=-25::2::.,0::0:::0~k:::W::h_:__ _____________ _ ii. Heat [MMBtu] 2,631 MMBtu c) Proposed annual fuel usage (fill in as applicable) i. Propane (g;;tlorMI\IIBtu] N/A ii. Co~~ . --:~--:. 'A~·.----------------- ,jm Wood'[tords, green 1ons1,'<Jry·toris]. · N!A · .~----------------------------- ;v. Other Project Cost a) Total capital cost of new system b) Development cost c) Annual O&M cost of new system d) Annual fuel cost Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat iii. Transportation 11,750 gal 7,250 gal 0 b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits AEA 2014-006 Grant Application 21 ,000 gal of fuel oil $ 1.3 Million $ 81,300 (including feasibility study and design/permitting $20,000 $103,320 $4.92 N/A Possible reduction in PCE payout Page 17 of 27 7123/2013 Renewable Energy Fund Round VII Grant Application -Standard Form Power Purchase/Sales Price a) Price for power purchase/sale Project Analysis a) Basic Economic Analysis Project benefiUcost ratio Payback (years) 2.0-2.5 12 0.26-0.6 $/kWh 4.4.5 Proposed Biomass System Information I ·. A' Afi'1i* T ~ENERGY AUTHORITY Please address the following items, if know. (For Biomass Projects Only) o What woody biomass technology will be installed (cord wood, pellets, chips, briquettes, pucks). o Efficiency of the biomass technology. o Thermal or electric application. o Boiler efficiency. o Displaced fuel type and amount. o Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture percentage. • Estimated cords of wood to be used per year, specify whether dry or green and the moisture percentage. • Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the biomass resource? o Inventory data. How much biomass is available on an annual basis and what types (species) are there, if known? AEA 2014-006 Grant Application Page 18 of 27 7/23/2013 I· '. Renewable Energy Fund Round VII Grant Application -Standard Form I ··~ AI ABtff4 > ~ENERGY AUTHORITY SECTION 5-PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • · Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project The following is a breakdown of the electricity and fuel oil & Dollar saving opportunities assuming the current fuel oil price of $4.92 per gal: With the waste heat recovery system, up to 5000 gal ($24,600) of heating fuel can be saved per year. With the wind energy system, up to 11,000 gal ($54, 120) of fuel oil can be saved annually in the power plant electricity production. In addition, up to 2050 gal ($10,086) of fuel oil can be saved by using the excess wind energy for heating. Thus, up to 13,050 gal ($64,206) of fuel oil can be saved with wind energy. Altogether, a fuel oil replacement of up to 18,000 gal ($88,560) per year is possible, which represents about 45% of the annual fuel usage. Over a 30 year period with a discount rate of 3%, this equals a present value of about $1,700,000. With a total estimate project cost of $1.3 Mill a payback of 12 years is possible. All predicted fuel oil savings were calculated using the Homer Energy Software, Windographer, and MS Excel. Over the project life time, there will be non-economic public benefits to Alaskans such as: • The positive aspect of the renewable energy is a sense of ownership and pride in sustainable technology • Reduced generator operating hours means reduced exposure to NOX from the diesel generators, reduced noise pollution to the community and surrounding eco-system, reduced risks for diesel spills that impact land and water • Improved climate for business development in the community • Local hire • Training for local operators There are currently no additional incentives or additional annual revenue streams. SECTION 6-SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: • Proposed business structure(s) and concepts that may be considered. • How you propose to finance the maintenance and operations for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation • Commitment to reporting the savings and benefits AEA 2014-006 Grant Application Page 19 of 27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I ~ A'*~ ~ENERGY AUTHORITY The investments made in this project are expected to bring a large reduction in fuel oil demand for the village. Over the long term, the waste heat recovery and wind energy system will deliver affordable and sustainable energy to Karluk. The energy study and design will be provided by Renewable Energy Engineering, LLC (REE). REE has proven itself as energy and engineering design, and project management consultant in Alaska, focused on maintaining top quality service at a reasonable price. The Alutiiq Power Company will operate and maintain the power plant generator waste heat recovery system and wind turbine system. This work will be supported financially by the operating revenues. The Alutiiq Power Company will seek power plant operator training to limit the risk of operating issue due to lack of technology expertise. The project operating and maintenance cost will include the salary of the operators and general administrative functions. Normal replacement of parts will be scheduled and budgeted into the annual budget to continue optimum operations. Savings and benefits will be reported to AEA through annual reports. SECTION 7-READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. In 2012 Renewable Energy Engineering, LLC (REE) has performed several site visits to Karluk. The village utility usage information was collected including existing generator system model, fuel usage, electricity production, village electricity and heating oil consumption for commercial, community and residential buildings, etc. The area wind maps were studied to determine suitable locations for wind turbines. REE found the closet and most promising wind location on a 1000 It high mountain south-west of the village center /power plant. REE installed a wind monitoring tower at this location, which will make wind data available for the feasibility study and design. As the detailed information listed in this application shows, REE heavily invested in a resource identification and analysis in Karluk. This includes land use, permitting, and environmental analysis, preliminary design analysis and cost, cost of energy and market analysis, and simple economic analysis. REE is ready to proof with a feasibility study and design/permitting phase that this project is worthwhile proceeding. Once approved, REE can immediately start the work process. SECTION 8-LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. The Karluk Tribal Council runs the Alutiiq Power Company, which operates the Karluk power plant. The Karluk village, the Tribal Council, Alutiiq Power Company, and the Kodiak Island Borough all fully support this renewable energy and energy efficiency project in Karluk. At this point there is no opposition to the project. Letters of support from the Karluk Tribal Council, the Alutiiq Power Company and the Kodiak Island Borough are attached. AEA 2014-006 Grant Application Page 20 of 27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form SECTION 9-GRANT BUDGET I ~ A' Aaz&A s -=>ENERGY AUTHORITY Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Provide a narrative summary regarding funding sources and your financial commitment to the project. $ 81,300 is required to complete a feasibility study and the design/permitting for the waste heat recovery and wind turbine energy system. The applicant is requesting the total amount of funding from the Alaska Energy Authority. Other contributions to the investment in Karluk's power system include: • REE has sponsored the wind monitoring tower installation and invested in the village energy study • Karluk Tribal Council will make the land available for the wind turbines, power line, and waste heat recovery hydronic heating loop. • Karluk Tribal Council will help with the installation of the wind turbine power line, and hydronic loop excavation/backfilling. Applications should include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (Reconnaissance, Feasibility, Conceptual Design, Design and Permitting, and Construction). Please use the tables provided below to detail your proposed project's budget. Be sure to use one table for each phase of your project. AEA 2014-006 Grant Application Page21 of 27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form FEASIBILITY STUDY I ~ A I ASBifA s ~ENERGY AUTHORITY 1.0 Proj.ect Scopinglcontractor 01 August $500 $300 ~~~~ded by $ sohcJtatJon 2013 Grantee 2.0 energy resource 01 2013 $11 ,500 NIA NIA $ 3.0 Identification of land and regulatory issues, 4.0 i '.'~and envi1r< JnrrJental analysis 5.0 . d ~f" •:o•yood of exJstJng an uture energy costs and markets 6.0 Assessment of alternatives 7.0 Conceptual design analysis and cost estimate 8.0 Detailed economic and financial analysis 9.0 • and operations plans 01 October $500 2013 01 October $500 2013 01 November $1 ,OOO 2013 01 November $2 ,000 2013 01 November $1,000 2013 01 November $1,000 2013 10.0 Finalr~r,ort and 01 I 2013 $1,000 TOTALS Direct Labor & Benefits Travel & Per Diem Eauioment ;& . $21,000 $0 >0 so pO NIA NIA $ NIA NIA $ NIA NIA $ NIA NIA $ NIA NIA $ NIA NIA $ NIA NIA $ NIA NIA $ $300 $21,300 $300 Work. $ provided by 300 Grantee NIA NIA $0 NIA NIA $0 NIA NIA pO NIA NIA ~~--~~N~~---+7-NI~~----~p~O----~ pO NIA NIA $0 TOTALS NIA AEA 2014-006 Grant Application Page 22 of 27 7123/2013 Renewable Energy Fund Round VII Grant Application -Standard Form DESIGN AND PERMITTING PHASE I ~ A L A-SIAft s -=:1 ENERGY AUTHORITY in'"'i~ti~l' ;%(~:~. 4's '' ; ,c,,J\i~1l.{~Ja *~~: .. : !i;~·x; 1.0 Projec, ,~:'~" •ll and Work con1trac~tor solicitation for 01 January . planning and design 2014 $2,000 $2,000 Provided by $4,000 Grantee 2.0 Permit applications (as 01 February needed) 2014 3.0 Final environmental assessment and mitigation 01 February plans (as needed) 2014 4.0 Resolution of land use, right of way issues (as 01 February needed) 2014 5.0 Permit 01 '2()14 6.0 Final system design 01;t;~ 7.0 Engineers cost estimate 01 May2014 8.0 Updated economic and 01 June financial analysis 2014 9.0 power sales agreements with approved 01 July 2014 rates 10.0 Final ; and 01 July operational plan 2014 TOTALS Direct Labor & Benefits Travel & Per Diem <& Contractual Services Other TOTALS AEA 2014-006 Grant Application $0 $0 $0 $0 $47,000 $1,000 $500 $0 $0 $0 $0 $0 $0 $50,500 0 0 $3,000 $2,000 $1,000 $500 $0 $0 $0 $500 $500 $9,500 $7,000 NIA NIA N/A $2,500 N.A N.A $~1.500 Page 23 of 27 Work& Fees Provided by $3,000 Grantee Cash provided by $2,000 Grantee Work Provided by $1,000 Grantee NIA $500 NIA $47,000 N/A $1,000 NIA $500 Work Provided by $500 Grantee Cash I by $500 Work Provided by $7,000 NIA ~0 NIA ~0 NIA ~0 Cash provided by $53,000 Grantee NIA ~0 NIA ~0 tRO 000 7123/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I = A I A£1'*4 t ~ENERGY AUTHORITY .0 ~v• and•guvoithat all August 01, $0 $1,000 :are 2014 Work Provided by Grantee $1,000 2.0 r i of bid documents 3 ' 0 . i 1 and award 4.1 Installing power plant generators heat recovery system and electric boiler as well as :>.: loop to i 4.2 "•o~o·l:, ·~ wind '"' ui, ,¥0 and transmission line, to power plant. Integrate switch gear. 5.0 uuv~•guv• I and testing 6. 0 Decommissioning old systems 7.0 Final Acceptance, Commissioning and Start-up 8.0 Operations Reporting TOTALS Direct Labor & Benefits Travel & Per Diem (Admin) nt :& Contractual Services Construction Other Land Value TOTALS AEA 2014-006 Grant Application 01. 2014 $O $3,000 01,2014 $O $1,000 August 01, 2015 $928,500 $278,700 August01, 2015 V¥0't2a1¥5 N/A-no old systems to N/A be N/A I September 01,2015 $0 $5,500 ~g1~ $0 $500 ;928,500 ~279,700 $0 $79,700 $0 $5,000 $0 N/A $0 N/A $0 $5,500 N/A $0 $200,000 Page 24of27 $3,000 $1,000 Land made available by Grantee & Labor and Equipment provided by Grantee $1,167,200 Cash Provided by Grantee N/A $5,500 $500 ;1,178.200 $79,700 ~~~,~~=~ou $5,000 N/A $0 N/A $0 ~:~ra~;;;~uou $5,500 N/A ~~?R,~nn Lan~ mad~y $200,000 $1,218,700 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I ~ A' AB¥iL -=:J ENERGY AUTHORITY p t M"l t ro1ec 1 es ones th t h ld b dd a s ou ea resse d" Bd tP In ume rooosa Reconnaissance Feasibility Design and Construction Permitting 1. Project seeping and 1. Project seeping 1. Project seeping 1. Confirmation that all contractor solicitation. and contractor and contractor design and feasibility 2. Resource solicitation. solicitation for requirements are identification and 2. Detailed energy planning and complete. analysis resource analysis design 2. Completion of bid 3. Land use, permitting, 3. Identification of 2. Permit documents applications (as and environmental land and regulatory needed) 3. Contractor/vendor analysis issues, selection and award 4. Preliminary design 4. Permitting and 3. Final 4. Construction Phases environmental analysis and cost environmental assessment and - 5. Cost of energy and analysis mitigation plans Each project will have market analysis 5. Detailed analysis of (as needed) unique construction 6. Simple economic existing and future 4. Resolution of phases. limitations. analysis energy costs and land use, right of and schedule markets constraints which 7. Final report and way issues should be identified 6. Assessment of recommendations alternatives 5. Permit approvals by the grantee 7. Conceptual design 6. Final system 5. Integration and analysis and cost design testing estimate 7. Engineers cost 6. Decommissioning old 8. Detailed economic estimate systems and financial 8. Updated 7. Final Acceptance, analysis economic and Commissioning and 9, Conceptual financial analysis Start-up business and 9. Negotiated 8. Operations Reporting operations plans power sales 10. Final report and agreements with recommendations approved rates 10. Final business and operational plan AEA 2014-006 Grant Application Page 25of 27 112312013 Renewable Energy Fund Round VII Grant Application -Standard Form I ~ A I W$4, c -=>ENERGY AUTHORITY I SECTION 10-AUTHORIZED SIGNERS FORM Community/Grantee Name: Alicia Andrew Regular Election is held: I Date: Authorized Grant Sianerlsl: Printed Name Title Term Alicia Andrew President, Karluk Tribal Council I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Alicia Andrew President, Karluk Tribal Council Grantee Contact Information· 'l I.......- Mailing Address: Karluk Tribal Council P.O. Box22 Karluk, AK 99608 Phone Number: (907) 241-2218 Fax Number: (907) 241-2208 E-mail Address: A96L YNN@AOL.COM Federal Tax ID #: 92-0071173 Sigl)ptlye /J :trV<J Signature _/;-/ --£><! Please submit an updated form whenever there is a change to the above information. AEA 2014-006 Grant Application Page 26of27 7/23/2013 Renewable Energy Fund Round VII Grant Application -Standard Form I , AI Mj)'(bA s ~ENERGY AUTHORITY SECTION 11-ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant's Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. Applicants are asked to separate resumes submitted with applications, if the individuals do not want their resumes posted. B. Letters demonstrating local support per application form Section 8. C. An electronic version of the entire application on CD per RFA Section 1.7. D. Governing Body Resolution or other formal action taken by the applicant's governing body or management per RFA Section 1.4 that: Commits the organization to provide the matching resources for project at the match amounts indicated in the application. Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. Provides as point of contact to represent the applicant for purposes of this application. Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Alicia Andrew Signature ~ ~ Title President Date AEA 2014·006 Grant Application Page 27 of27 7/23/2013 Renewable Energy Engineering, LLC. · Mechanlcai Engineering, Energy E'lficiency Upgrades, Sustainable Energy Solutions Renewable Energy Engineering, LLC -Call us today: 907-830-4076 We are located in Anchorage, Alaska. Renewable Energy Engineering, LLC manages projects from high efficiency HVAC and plumbing to sustainable and renewable energy design and planning. Let us save you energy! . Mechanical Engineering (HVAC) • Electrical Engineering per Sub Consultant • Energy Audits I Energy Efficiency Assessments, Feasibility Studies • Engineering for Sustainable Energies such as Solar Thermal, Photovoltaic, Wind, Hydro, Biomass, Geothermal, Waste Heat Recovery • Electrical Grid Analysis (per Sub Consultant) • Layouts for Home Power, Backup Power, Grid Connected, Off-grid, Energy Storage • Grant Writing • LEED Certification We can get your community and your home up to speed when comes to energy efficiency in mechanical and electrical systems. We are dedicated to making a difference in Alaska's and the nation's energy landscape. Small scale or large scale application - We offer outstanding engineering services for mechanical engineering and for the implementation of renewable energy systems such as wind, solar-electric & solar-thermal, hydro, wave, tidal, geothermal, biomass, and energy storage. Whether studies, design bid build or design build, we can do it all. We are licensed and insured in Alaska and ready to serve you! Let's work together to get it done! Renewable Energy Engineering, LLC. · · MechimicaiEngineering, Energy Efficiency Upgrades, Sustainable Energy Solutions CURRENT PROJECTS Grant writing for Karluk, AK Feasiblity Study and Design of 50kW Wind Park and Waste Heat Recovery Upgrade in Karluk, AK -This $1,000,000 project includes 4 Gaia Wind Turbines, 0.6 mile long transmission line to power plant, electric boiler to utilize wind excess energy, 2 generator heat recovery units, 1000 ft hydronic loop to connect community buildings to waste heat recovery loop. -1 wind monitoring tower was installed on the 1000 ft high mountain, data will be recorded over one year and then analyze with the data processing software Design Services for Pilot Point, AK Design of 1 OOkW Wind Park-Pilot Point, Ak -This $1,300,000 project includes up to 8 Gaia Wind Turbines, 1.3 mile long transmission line to power plant, electric boiler for wind excess energy -REE also designed a new central heating system for main community facilities, a 1300 ft hydronic heating loop to connect all community buildings -3 wind monitoring towers was installed, data is being collected over one year and then analyze with the data processing software -REE also provided an electrical grid assessment for the village Building Energy Audits Karluk Residential Building Energy Audit This costumer was paying over $7000 in energy costs per year. The building energy audit measured the entire house electrical and thermal usage; itemized the energy used by heating, water heating, cooking & refrigeration, light, entertainment, etc; The audit identified short term and long term energy saving measures to reduce the home owner's energy bill. Mechanical Engineering Projects Teaming up with Q Engineers, REE provides design services for: Cordova Fish Processing Plants in Kenai, Cordova Mclaughing Gym in Bear Valley, Anchorage Castable Ceramics Commercial Building 2 Renewable Energy Engineering, LLC. Mechanical Ellgineering,Energy Efficiency Upgrades, sllstainabhi Energy Solutions Energy Audits/Energy Efficiency Upgrades We provide building energy inspections with the goal of reducing the building energy consumption and building operating cost. The building envelope heat loss is analyzed and the efficiency of the existing mechanical and electrical systems is considered. We use the latest energy modeling software. All the data is analyzed in the comprehensive spreadsheets. We can determine the energy upgrades that make sense for the building and we can show the payback for each of those energy upgrade items. Based on our recommendations, the building owner/project manager can decide which energy upgrades shall be implemented. Every building is different and unique, however, there are upgrades that are readily available for most energy upgrade projects: -Increase building insulation in roof/attic, and walls. Did you know that in most buildings, the wall area is 4 times bigger that the roof area? Therefore, increasing the wall insulation is very important. Also, most buildings are designed by default to contain many thermal bridges, which cause immense heat loss. Install air gaps in walls and consider integrating a continuous layer of insulation such as ridged foam board. -Tighten up the building envelope to reduce the infiltration heat loss. The blower door test will tell you how much negative pressure the building can hold. The higher this number the tighter the building is constructed. -Use Low E windows. In Alaska, you want as many windows on the south side, very few on the north side of the building. Low E windows permit solar heat to enter a house, but block indoor radiant heat from escaping. Low E coatings placed on the inside of the window pane can reduce the radiant heat loss by 50%. Multiple panes and a space between the panes filled with argon or krypton gas can also reduce the heat loss. 3 Renewable Energy Engineering, LLC. Mechanical Engineerill9, Energy Efficiency Upgrades, Sustainable Energy Solutions Sliding windows close less tightly than fixed windows. Metal-frame windows conduct more heat than fiber-glass or vinyl windows. Much of the window heat loss can be reduced by setting back the window in the wall. Thicker walls allow setting back the window. This will reduce the effect of cold air blowing directly over the exterior window pane. Further, the energy loss at night can be reduced by installing exterior insulated window shades. Window shades installed on the inside can cause icing issues. The windows should have a label issued by the National Fenestration Rating Council (FFRC). A U-factor (overall thermal performance) of 0.25 or less is desirable. The solar heat gain coefficient (heat transmission from sunlight) should be greater than 0.6. The energy star label is also useful, but having this label does not always mean that the window performs well in our cold climate zone. -Install a high efficiency heating system. Condensing gas boilers with radiant floor systems can be up to 95% efficient. Condensing oil boilers can be up to 91% efficient. Use an indirect fired hot water tank to make domestic hot water. Utilize solar thermal collector preheating of domestic water. -Reduce pump energy: Consider variable frequency drive pumps (VFD) -Modulate hydronic heating supply temperature based on the outdoor temperature and allow for night set back; Modulate boiler output to match heating demand and to run the boiler at best efficiency. -Install heat recovery systems to use the heat in the building exhaust air streams to preheat the incoming cold air. -Replace all incandescent lighting with fluorescent or LED lighting. Replace outdated T12 commercial fluorescent light fixtures with magnetic ballasts with new T8 and T5 fixtures with electronic ballasts. -Upgrade ventilation system to only provide what is really required Installing variable flow boxes will allow the system to modulate the air flow based on the actual demand, which will save fan power. Clean/replace filters frequently. 4 Renewable Energy Engineering, LLC. Mechanical Engineering, Energy Eifidencl' Upgrades, Sustainable Energy Solutions t-leating Ventilation Air Conditioning Plumbing We provide the full spectrum of building mechanical engineering: -Heating Design: We calculate the heat loss and heat demand of your building and size the heating system. Together with the building owner/developer, we determine the type of heating fuel that will be utilized (Oil, natural gas, propane, electricity). A heated floor makes sense! Whether new built or remodel, deciding for a hydronic heated floor system increases comfort and saves energy. Did you know that high efficient condensing boilers depend on a low heating return temperature in order to operate in the high efficient range? Radiant floors are perfect for that because of the low supply and return temperatures (120 deg F and 90 deg F.) -Plumbing Design: Domestic cold water and hot water: Solar thermal collectors can be used for preheating. Evacuated tube collector are 90% efficient and do work in Alaska. It makes sense to combine building heating and domestic water heating in one boiler. -Ventilation Design. Ventilation is important in any climate because it replaces stale indoor air with fresh outdoor air, and flushes out potential pollutants caused by combustion appliances or offgassing materials. Did you know that ventilation is essential in cold climates, where homes are often built tighter and allow less natural air leakage? Ventilation also controls indoor humidity, which is created by activities like cooking, showering, and breathing. If moist air is not exhausted, it can build up to damaging levels, penetrate different parts of the home, such as the walls and roof, and potentially cause moisture problems like mold and rot. You can add mechanical ventilation through fans, vent hoods, or with a heat- recovery ventilator (HRV), depending on the nature of the situation. We design variable and constant flow air conditioning ventilation systems. We make sure to provide only as much ventilation and outdoor air as needed in the building. Heat recovery on the exiting exhaust air streams pays back quickly. The heat is used to preheat the cold incoming outdoor air. A product called Solarwall can be used for preheating cold incoming outdoor a1r. 5 Renewable Energy Engineering, LLC. · Mechanical Engineering, Energy ·Efficiency Upgrades, Sustainable Energy Soiutions LEED Green Building Certification We provide LEED certification for buildings. LEED certification provides independent, third-party verification that a building project is environmentally responsible, profitable and a healthy place to live and work. It makes sure that a building, home or community was designed and built using strategies aimed at achieving high performance in key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality. Feasibility Studies We can provide Energy Feasibility Studies. A feasibility study looks at the different on-site renewable energy technologies available to see which, if any, could be used. This could be a wind park study or village heating system upgrade study, or any other energy efficiency upgrade. The renewable energy feasibility study takes into account many factors such as location, building orientation, building size, demand for particular energy at any given time, degree days, wind speeds, availability of biomass fuels, planning issues etc. Our Energy Feasibility Studies can be used a as a single source for all the critical information you need to make an informed decision about some opportunity, risk, or option. The Energy Feasibility Study Report can be used by anyone as a quick self-study guide. Grant Writing We can help you with your grant application. There are many grant money opportunities available for business, education, research, non-profits, tribes, communities, etc. We can help you with your grant writing whether you are applying for money from government entities, businesses, private foundations or trusts. Those applying for grants include non-profit organizations, educational institutions, and individuals as well as government entities. 6 Renewable Energy Engineering, LLC. Mechanical Engineering, Energy Efficiency Upgrades, Sustainable Energy Solutions · Biomass Energy We provide feasibility studies and design services for biomass heat. Our experience covers small to large biomass energy systems using cord wood, pellets, or chips. In order the determine the right system for your application, some first general questions one should look into are: -How much heating capacity is needed? -What local biomass source is available/Does it have to be shipped in/What is the closest supply location? -Is there any existing structure that can house the new biomass boiler? -How much biomass storage do I need and how do I protect it from the elements? -Are you planning on training operators for the system operation and maintenance? Did you know the in many countries the fire departments appreciate the communities cleaning out their forests by removing dead trees and branches, thereby reducing the fire hazard. That means free biomass that can be transformed to wood ships or pellets. Every system has its pros and cons. Let us help you with the technical details! Make the right decision and save fuel oil by switching over to using biomass! We have a lot of knowledge in fossil combustion technology. A good portion of the biomass heat systems available in the USA were invented in Europe, especially in Germany. Our engineer was trained in Germany in Energy Engineering Technologies also including thermodynamics, combustion technology, power plant operation and controls, power from biomass, wind, hydro and solar power plants. 7 Renewable Energy Engineering, LLC. · Mechanical Engineering, Energy.Efficiency Upgrades, Sustainable Energy Solutions Wind Power We provide wind energy design for small and large wind power applications. It is important to pick the right wind turbine type for the unique on-site wind parameters. First, the wind speed is evaluated with monitoring towers. The data is analyzed with the latest wind data processing software. We simulate the users power demand and determine the appropriate wind power capacity. We calculate the expected wind turbine output based on the manufacturer specifications and the on-site wind parameters. We consider several wind turbine manufactures and various combinations of wind turbines to find the most cost effective and most productive solution for you. There are many smart decisions to be made to pick the right place for a wind park, the right type of tower foundation, the appropriate tower height, the transmission line back to the power plant, the switch gear, and battery system, use of excess energy.tc. The taller the tower the better! Wind increases exponentially with height, therefore higher towers make sense because their cost is justified through increased power production. Those taller towers also allow larger turbines to enter the market and allow installing them in less turbulent winds, which decreases wear and fatigue. The 80- m tower is about standard in the USA. In Europe, the 100-m tower is standard. The extra 20m will make best use of the larger rotors. Of course, cranes are needed to erect taller towers. In Europe there is a sophisticated infrastructure and cranes can be transported by road to the wind park site. In Alaska however, especially in the remote villages, there is limited road access. Most equipment needs to be barged or flown in. For small wind farms in remote villages, smaller towers with tilt-up kits may be the way to go. Those can be easily taken down for maintenance as well. 8 Renewable Energy Engineering, LLC. · Mechanical Erigineeiiiig, Energy Efficiency Upgrades, sustainable Energy Solutions Hydropower -Small System under 30 MW We provide hydro power design & system layout. We can help you with you with the hydroelectric design and consulting services including, engineering, project planning, project management and supervision in all phases of small hydroelectric power development including hydraulic design, hydroelectric dams, intakes, spillways, tunnels, penstocks, electromechanical equipment, power transmission lines and electrical substations. Our company would provide hydropower engineering, civil, structural and mechanical design, feasibility studies, site investigations, cost estimates, contract documents, bid evaluations, environmental impact assessments and reports, project management, project planning and on-site inspections. We use sub consultants for electrical, structural and civil . . . engmeenng serv1ces. Hydropower systems provide reliable continuous power for communities and cities. They are dependent on specific combinations of geography, demand, and land-use issues. 9 Renewable Energy Engineering, LLC. Mechanical Engineering, Energy Efficiency Upgrades, Sustainable Energy Solutions ·· Solar Heating Solar Heating Does Work in Alaska! We tested the Ovendrop evacuated tube collector in South Pole. While flat collectors lose most of the absorbed heat in the cold climate zone temperature conditions, the evacuate tube design keeps most of the heat energy inside the heat pipe making those collectors about 90% efficient. We have designed the system layout of several installations in Alaska. We can help you save energy. A Typical Residential System Design Description The solar closed-loop heating system consists of the pump and control station, one or two evacuated tube collector(s), and a glass lined tank with two internal coils and an electric backup element. An expansion tank is also needed. Propylene glycol antifreeze is filled into the closed loop system through the fill and flush valve. Cold water is piped to the solar tank. An anti-scald valve must be installed for hot water mixing to hot water fixtures if the solar tank high limit in the controller is set above 120 F. The top coil is piped to the boiler in the manner of a standard indirect water heater. 10 Renewable Energy Engineering, LLC. Mechanical Engineering, Energy EfliciellcyUpgrades, Sustainable Energy Solutions 11 Renewable Energy Engineering, LLC. Mechanical Engineering, Energy Efficiency Upgrades, SustaillaoleEnergy Solutions Solar Power Solar Power does work in Alaska! Tests were performed in South Pole to get photovolatic panel operating results in extreme cold climate conditions. Michael Hauke traveled to the Amundsen Scott South Pole Station as a building inspector. He performed a feasibility study for using solar power to partially replace fuel oil. See pictures and link to full report below. During the 2008-09 summer, a new test project saw photovoltaic (PV) panels installed on the roof of Altie Meadows, the central power building for the summer camp utilities. Six 175W Sharp modules were installed ... 2 facing west, and one each facing north, south, east, and up. They were closely monitored to determine the output of each panel 24/? ... during the initial period of installation they averaged a total of 65 kWH weekly. As a part of the study, the potential fuel savings was determined, assuming that all available roof and wall areas on station structures were outfitted with similar panel installations ... the numbers indicated that a maximum annual fuel savings of 25% could be achieved ... and a payback period of less than 2 years (material cost only) assuming a delivered fuel cost of $30 per gallon and an output of 13.04 kWH per gallon. In summary, about 2400 gallons of fuel per year would be saved for each 100 solar panels that were installed. 12 Renewable Energy Engineering, LLC. · MechanicaiEnglneefing, Energ)fEifidency Upgrades, Sustainable Energy Solutions Michael also worked in Germany and Spain on solar power plant research projects. He worked with the German Society for Aeronautics and Astronautics (DGLR) and at the PlataformaSolar in Almeria, Spain. Engineers at PlataformaSolar are testing various solar power plant concepts including solar towers, solar parabolic troughs, solar dishes, and more. Michael's task was to analyze options to minimize the heat loss of the parabolic trough in the water/steam parabolic trough solar power plant. 13 Renewable Energy Engineering, LLC. MechanicafE!lgllleerlng, Energy EffiCiellcy Upgrades, sustainable Energy Solutions Heat Pumps We offer heat pump design & layout. Heat pumps use electric energy to make heat for a building. With power factors of 1 :3 to 1:4, they can make 3 to 4 times as much heat energy. It makes a lot of sense if the electricity is provided by a renewable energy source such as wind, solar, hydro, etc. Groundwater Heat Pump (GWHP) or open-loop systems are the most established of the ground-source heat pump systems. These systems require careful consideration of groundwater flow, well design, heat exchanger selection and disposal. Open Loop System Options: 1. In residential design and in small commercial applications, groundwater is directly used in heat pump units. It is very susceptible to water quality induced problems, the most common of which is scaling of the refrigerant- to-water heat exchangers. This design is recommended in only the smallest applications in which practicality or economics precludes the use of an isolation heat exchanger and/or groundwater quality is excellent (the determination of which requires extensive testing). The standing column system has been installed in many locations in the northeast portion of the U.S. Like the direct groundwater system, it is subject to water quality induced problems. Standing column systems are used in locations underlain by hard rock geology; where wells do not produce sufficient water for conventional open loop systems and where water quality is excellent. Depths of wells are 1 000 to 1500 ft and the systems operate at temperatures between those of open and closed loop systems. In colder climates, this sometimes precludes the use of a heat exchanger to isolate the groundwater. 2. Indirect open loop systems employ a heat exchanger between the building loop and the ground water. This eliminates exposure of any building components to the ground water and allows the building loop and ground water loops to be operated at different flows for optimum system performance. Water can be disposed of in an injection well or to a surface body if one is available. These systems offer energy efficiency comparable 14 Renewable Energy Engineering, LLC. Mechariicai'Englneerillg, Energy Efficiency Upgrades, Sustainable Energy Solutions ·· ·· · · to closed loop systems at substantially reduced capital cost. Thus, water quality and geology limitations are eliminated. Open loop system design is one in which the performance of the system is optimized based on the power requirements of the well pump, loop pump and heat pumps. In a system of this configuration, it is apparent that the greater the ground water flow, the more favorable will be the temperatures at which the heat pumps will operate. As the ground water flow is increased, the improvement in heat pump performance is increasingly compromised by rising well pump power. At some point, increasing well pump power overshadows the improvement in heat pump performance and the total system performance begins to decline. The task in open loop design is to gather enough information about the well pump, loop pump and heat pumps to permit the identification of these trends and to select the optimum system performance point. One has to elevate the well pump power required to produce a range of groundwater flows and combine that with the heat pump performance at those same groundwater flows. The optimum relationship between pumping power and heat pump performance is established at the design condition and system performance at off peak conditions is maintained by accurate well pump control. 15 lL ); '' . . \. ,, I I I 00 rq.~l lr,. !l IV/ [~ 1.-U~ SI-P l 6 2013 LV AIDEA September 9th, 2013 AEA The Alaska Energy Authority 813 W Northern Lights Blvd Anchorage, AK 99508 RE: ReD,ewable Energy Fund Round 7-Karluk Feasibility Study and Design for Integration of Wind Energy and Waste Heat Recovery To Whom it May Concern, Please find attached the Karluk Tribal Council's grant application for the integration of wind energy and waste heat recovery. The Karluk Tribal Council has hired Renewable Energy Engineering, LLC (REE,LLC) to seek grant funding for renewable energy and energy efficiency upgrade projects through the Renewable Energy Fund. REE, LLC has long supported mechanical, energy conservation, and renewable energy projects in Alaska. Alicia Andrew, the president of the Karluk Tribal Council, is authorized to commit this organization to the obligations under the grant. Alicia Andrew will serve as the authorized name point of contact to represent the applicant for purposes of this application. The Karluk Tribal Council is in compliance with all federal, state and local laws including existing credit and federal tax obligations. By the authority granted by the Board, let this letter serve as formal approval and endorsement for the Karluk Wind Energy and Waste Heat Recovery Project and as a commitment to provide project resource contributions as indicated in the application. Enclosed are the following documents: • Grant Application • Contact information, resumes of Applicants Project Manager, key staff, partners and consultants and suppliers • Letters demonstrating local support • Electronic version of application Sincerely, ~ (" -::il:t1_ ( Alicia Andrew President Email: karlukiracouncil@aol.com Karluk IRA Tribal Council P.O. Box22 Karluk, Alaska 99608 Ph(907)241-2218 fax(907)241-2208 Relevant Organizational Experience Renewable Energy Engineering, LLC (REE) has been providing engineering services for Karluk and other Alaskan villages. REE, LLC provides design and planning services for high efficient HV AC and plumbing to sustainable energy systems. The following quality energy services are offered: • Mechanical Engineering for Buildings including HV AC, Heating, Plumbing, Ventilation & Air Conditioning, • Waste Heat Recovery • Energy Studies, Feasibility Studies, Energy Assessments, Energy Audits • Home Power, Backup Power, Grid Connected, Off-grid, Energy Storage • Graot Writing, LEED Green Building Certification • Sustainable Energy Engineering such as Solar thermal, Photovoltaic, Wind, • Hydro, Biomass, Geothermal, Wave Energy, Heat Pumps REE is dedicated to making a difference in Alaska's and the nation's energy landscape. Small scale or large scale application -REE offers outstaoding engineering services for mechanical engineering and for the implementation of renewable energy systems such as wind, solar-electric & solar-thermal, hydro, wave, tidal, geothermal, biomass, and energy storage. The founder of the Renewable Energy Engineering, LLC obtained his energy education and work experience in Europe where those technologies are common practices. 9 years of construction engineering experience in Alaska add to this knowledge. Overall 13 years of work experience. Whether studies, design bid build or design build, REE cao get the job done. REE is licensed aod insured in Alaska. Q Engineers, Inc. will work as a sub-consultant to REE. Q Engineers, Inc. is licensed and insured in Alaska. Electrical aod Mechanical Engineering for new, renovations aod general upgrades to buildings to include HVAC, plumbing, electrical, aod data systems. Q Engineers specializes in federal, state and city government projects with a team of mechanical and electrical engineers highly experienced in operating in government-structured contracts. Q Engineers has executed numerous design-build projects for government aod private owners, working directly with contractors to design medical, industrial aod residential facilities. Alaska Wind Industries, Inc. Alaska Wind Industries, Inc. will integrate the wind turbine system. Standard Steel Inc. dba Alaskan Wind Industries, is the leading and most experienced renewable energy general contractor for wind turbines ranging SkW and 50kW for the State of Alaska. AKWI is a specialty contractor offering structural steel erection, welding services, tower climbing maintenance and wind turbine installations for all of Alaska. As a specialty contractor with years of working knowledge with rigging, structural systems and welding -this company has completed competent, safe, and successful implement of wind turbines throughout Alaska. This firm is certified in tower and rescue climbing for all types of tower maintenance, met tower installations and wind turbine tower construction. AKWI provides full turn key projects. To make sure all systems are placed correctly, AKWI provides trained site assessors to properly evaluate landscapes. To request a site assessment, please click here. Further, AKWI maintains a direct line to the world's leading manufacturers of small distributed wind energy systems. AKWI effectively keeps up to date on the industries changes which limits the exposure of producers from untested systems that are not ready for our Alaskan environment. Alaskan Wind Industries is known for their technical assistance, extreme financial support and unbeatable customer support. AKWI has certified electricians with long term experience that can connect the wind turbines to the grid and switch gear. A & J Mechanical Jim Scott with A & J Mechanical will install the waste heat recovery system. Jim has a long tracking record for mechanical contracting work in Alaska. He has installed heating, plumbing and waste heat recovery systems in Alaska. Jim has over 35 year construction experience with mechanical systems. He has worked as plumbing project supervisor for Klebs Mechanical for 5 years. He worked 4 years with Athna Construction and was owner of Scott Mechanical Construction for over 17 years. His licenses include, State of Alaska Mechanical Administrator, State of Alaska Journeyman Plumber, Municipality of Anchorage Journeyman Plumber/Contractor, City of Fairbanks Master Plumber. The waste heat recovery equipment will be provided by S .F. Griggs and Associates, who have a long track record on selling waste heat recovery systems. S.F. Griggs latest project involves a $36,000,000 waste heat recovery application in Seattle. In 2009, the Karluk Tribal council was awarded a $30,000 for conducting a village energy study which has been completed. The study was focused on the building energy audits. 08/11/12 01:19AH ALUTIIIJPOliJER 9072412228 p,Ol Alutiiq Power Co. P.O. Box42 Karluk, Alaska 99608 Phone 907-241-2228 Fax 907-241-2213 August 8, 2012 Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, Alaska 99503 RE: Renewable Energy Fund Round 6 Application of Karluk Tribal Council Dear Review Committee: The Karluk Tribal Council owns and runs the Alutiiq Power Co. which operates the Karluk power plant. The Alutiiq Power Co. is pleased to support the renewable energy power development and energy efficiency upgrades -specifically the integration of wind turbines and power plant generator waste waste heat recovery. Our commitment is expressed in our willingness to coordinate and share information with the Ak. Energy Authority, AEA and Renewable Energy Engineering, LLC {project engineering consultant). The Karluk Tribal Cound11s a federally-recognized native tribe. As AEA is aware, increasing fuel costs and fuel transportation in rural Alaska are driving local residents to leave their communities and shifting development. Most houses in Karluk elettric heaters are used as supplementary heat source. In some of the houses electric heaters are the only heat source, resulting in l_ligh energy bills. The average household energy costs are estimated to be in excess of $4,549 per year exclusive of firewood and propane. With the current fuel price of $4.92 per gallon, and an electricity base cost of $0.71/kWh, the community struggles greatly with the increasing energy costs they have to pay each year, making lt hard to survive as a small tribe. Karluk knows that the only solution is to invest in a more economical and sustainable energy infrastructure. However, due to its size,Karluk relies on federal funding to make it happen. The Alutiiq Power Co. believes that the most important benefit of the project will be that the 08/11/12 01:19AM ALUTIIQPOVER 9012412228 p.OZ availability of sustainable and affordable energy will improve the living conditions or residents, support economic development, and encourage younger members of the tribe to remain In the community of Karluk. To address this rural crisis, the Alutiiq Power Co. would support a safer, more reliable, and renewable power source to provide heat and electricity to the customers of Karluk. Stabilizing and lowering the cost of electrifying the community wlll have a positive effect on Karluk and encourage economic investment. It is our firm belief that a hybrid wind-diesel system with waste heat recovery can be developed that would make Karluk a viable place to live and work. With support of AEA, Karluk could confirm that hydroelectric power Is a feasibility option for the community. With continued rising diesel fuel costs, this system would significantly benefit the community of Karluk. Sincerely, ~~~ Kodiak Island Borough August 14, 2012 Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage, AK 99503 Office of the Borough Mayor 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9310 Fax (907) 486-9391 Re: Renewable Energy Fund Round 6 Application of Karluk Tribal Council Dear Review Committee: The Kodiak Island Borough supports the Karluk Tribal Council's application for the renewable energy power development and energy efficiency upgrades. This is a critical project for Karluk due to the increasing fuel costs in rural Alaska. These costs are driving local residents to leave their communities and shifting development. For a village like Karluk, most houses supplement their heat source with electric heaters and in some homes that is the only heat source. This results in high energy bills and village residents struggling with the increasing costs they pay each year, and making it hard to survive as a small tribal village. The solution is investing in a more economical and sustainable energy infrastructure to make Karluk a viable place to live and work. The Kodiak Island Borough and the Karluk Tribal Council would very much appreciate your favorable consideration of this critical energy power development and energy efficiency upgrades. This system would significantly benefit the community of Karluk. Sincerely, KODIAK ISLAND BOROUGH Jerome M. Selby Borough Mayor