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HomeMy WebLinkAboutPart 1 Application Application to the ALASKA ENERGY AUTHORITY 813 West Northern Lights Blvd. Anchorage, AK 99503 under 2015 Funding Cycle - Round VII of the Renewable Energy Fund For PONCELET KINETICS RHK100 PROTOTYPE DEMONSTRATION Page 1 TABLE OF CONTENTS Part 1 Poncelet Kinetics RHK100 Prototype Application..............................................................3 Applicant Information .....................................................................................................4 Project Summary .............................................................................................................5 Project Management Plan ...............................................................................................8 Project Description and Tasks ......................................................................................12 Project Benefit ..............................................................................................................26 Sustainability.................................................................................................................27 Readiness and Compliance with other Grants ..............................................................28 Local Support and Opposition ......................................................................................29 Grant Budget .................................................................................................................30 Authorized Signers........................................................................................................32 Additional Documentation and Certification ................................................................33 Part 2 Initial Statement ...................................................................................................................1 Exhibit A - Project Description and Overview ....................................................................7 Exhibit E - Environmental Report .....................................................................................50 Exhibit F - Project Drawings and Supporting Design Report ..........................................100 Exhibit G - Project Boundary Map ..................................................................................112 Final Design Report .........................................................................................................118 Part 3 FERC License ......................................................................................................................1 ADF&G Title 16 Permit ....................................................................................................39 DNR Temporary Water Use Permit ...................................................................................42 DNR Land Use Permit .......................................................................................................45 DNR TBAP Letter .............................................................................................................56 US Army Corp of Engineers Permit ..................................................................................58 US Coast Guard Permit ......................................................................................................59 DNR Coastal Zone Concurrence Letter .............................................................................60 State Historic Preservation Officer (SHPO) email ............................................................61 State Historic Preservation Officer (SHPO) stamp ............................................................63 Documentation of Support .................................................................................................64 Part 4 Resumes ...............................................................................................................................1 Page 2 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Application 7/1/2013 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 107.605(1).  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are completed and funding for an advanced phase is warranted.  If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed.  In the sections below, please enter responses in the spaces provided, often under the section heading. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed. REMINDER:  Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply.  All applications received will be posted on the Authority web site after final recommendations are made to the legislature.  In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. Page 3 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Whitestone Power and Communications Type of Entity: IPP Fiscal Year End: December Tax ID # 20-0163891 Tax Status: For-profit X Non-profit Government ( check one) Date of last financial statement audit: n/a Mailing Address P.O. Box 1630 Delta Junction, AK 99737 Physical Address 931 Westside Lp. Delta Junction, AK 99737-1630 Telephone 907-895-2374 Fax 907-895-2375 Email whitestoneassociation@gmail.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Steven Selvaggio, P.E. Title Project Manager Mailing Address P.O. Box 1630 Delta Junction, AK 99737 Telephone 907-803-3021 Fax 907-895-4346 Email Steven.wsmech@gmail.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 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 X An independent power producer in accordance with 3 AAC 107.695 (a) (1), or A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant’s board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement (Section 3 of the RFA). Yes 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as identified in the Standard Grant Agreement template at 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. Page 4 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Application 7/1/2013 SECTION 2 – PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Poncelet Kinetics RHK100 Prototype Demonstration 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project – Latitude and longitude, street address, or community name. Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s location on the map and then right clicking with the mouse and selecting “What is here? The coordinates will be displayed in the Google search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance obtaining this information please contact AEA at 907-771-3031. 64°09'22.66" N, 145°51'39.88" W 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Community of Whitestone 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels (excluding heat-only) Hydro, Including Run of River X Hydrokinetic Geothermal, Excluding Heat Pumps Transmission of Renewable Energy Solar Photovoltaic Storage of Renewable Other (Describe) Small Natural Gas 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction Reconnaissance Final Design and Permitting Feasibility and Conceptual Design X Construction and Commissioning 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. The proposed project would demonstrate a prototype hydrokinetic turbine through installation of a 100 kW Poncelet Kinetics™ turbine. The project will prove the design concepts employed for debris management, environmental impact, shallow water power generation, and electrical efficiency of the proposed design. The technology proposed to be used was developed by Whitestone Power and Communications under the trademark Poncelet Kinetics. The project is shovel-ready with all permits and design documents in hand. Page 5 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, local jobs created, etc.)  The proposed project is a demonstration project. The primary challenge to successful use of hydrokinetic technology in Alaska has been the environmental concerns. These concerns include both impacts of the technology on aquatic and wildlife, as well as the ability of the technology to survive high debris loads and harsh weather conditions. The proposed technology has been designed with these specific concerns in mind and represents a departure from the mainstream of hydrokinetic research. If funded, the proposed project will represent a major step forward toward the widespread use of hydrokinetic technology in Alaska. As fuel costs continue to rise, finding supplemental technologies to reduce energy costs is becoming more critical. Given the plentiful riverine resources of Alaska, hydrokinetics represents a vast untapped energy source for many of Alaska’s communities. The proposed design is uniquely suited to operation in the swift, relatively shallow, debris-laden waters of Alaska. It is capable of providing significant energy cost reductions for many of Alaska’s communities. 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. WPC is requesting $1,560,558 in grant funds for project construction, while WPC provides an in-kind contribution of $120,000. The cost breakdown below details the project budget. Category Cost Percent of Total Direct Labor and  Benefits $169,890 10.1% Travel  and Per Diem $79,500 4.7% Equipment $251,250 15.0% Materials  and Supplies $898,891 53.5% Contractual  Services $201,000 12.0% Construction Services $80,027 4.8% Total Phase IV Cost $1,680,558 100.0% Construction Phase In-Kind $120,000 7.1% State Funds $1,560,558 92.9% TOTAL $1,680,558 100.0% Construction Cost Breakdown Funding Sources 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project’s total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $1,560,558 2.7.2 Cash match to be provided $0 2.7.3 In-kind match to be provided $120,000 2.7.4 Other grant funds to be provided $0 Page 6 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 2.7.5 Other grant applications not yet approved $0 2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $1,680,558 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $1,940,558 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects. $0 2.7.9 Estimated Direct Financial Benefit (Savings) $2,187,846 2.7.10 Other Public Benefit If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in Section 5 below. Page 7 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Steven A. Selvaggio, P.E. P.O. Box 1630 Delta Junction, AK 99737 Phone: 907-895-4770, Fax: 907-895-4346 Cell: 907-803-3021 Email: steven.wsmech@gmail.com References: John R. Hasz, P.E. P.O. Box 1229 Delta Junction, AK 99737 Phone: 907-895-4770, Fax: 907-895-4346 Cell: 907-803-3784 David Lockard, P.E. 813 West Northern Lights Blvd. Anchorage, AK 99503 Phone: 907-771-3000 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Please fill out form provided below. You may add additional rows as needed. Milestones Tasks Start Date End Date Finalize Funding Paperwork 1. Work with AEA to set up accounting procedures and complete paperwork 2. Open project accounts and finalize accounting structures 7/01/14 8/14/14 Order Long Lead Items 1. Establish contact with selected vendors and finalize order details 8/1/14 9/1/14 Manufacture All Components 1. Arrange manufacturing meetings with Alaskan Copper to fine tune manufacturing drawings 2. Coordinate manufacturing process and quality control 9/1/14 2/28/14 Page 8 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 Milestones Tasks Start Date End Date 3. Arrange shipping for components to Alaskan Copper plant in Seattle, WA. 4. Complete assembly of RHK100 in the manufacturer’s plant Ship All Project Materials to Site 1. Arrange crating and shipping of all components to Whitestone 3/1/15 3/31/15 Construct Turbine 1. Finalize details for site preparation 2. Deploy all equipment and materials to site 3. Arrange hiring of laborers and assembly of project team 4. Complete assembly of turbine 4/1/15 5/31/15 Construct Intertie/Anchoring Systems 1. Finalize project parameters and cooperation with Golden Valley Electric Association (GVEA) 2. Provide any needed support services for lineman contractor 4/1/15 5/31/15 Deploy and Startup All Systems 1. Finalize deployment method and conduct training operations 2. Deploy turbine and verify debris management mechanisms 3. Engage turbine to produce power and verify proper operation of all systems 4. Connect turbine to grid monitor system for proper operation 6/1/15 7/1/15 Testing and Optimization 1. Conduct daily inspections 2. Conduct ongoing design review and update based upon results of observed behavior 3. Publish reports as required for the Federal Energy Regulatory Commission (FERC), AEA, and other interested resource agencies 7/1/15 9/30/16 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. Whitestone Power and Communications (WPC) owns all rights to the technology being developed under this proposal. WPC vice-president Josiah Keller, CPA will be in charge of all financial administrative aspects of the project. Assisting him on bookkeeping will be Jinni Selvaggio, secretary of the WPC board of directors. Jinni has a degree in Business Management. Project management will be carried out by Steven A. Selvaggio, P.E., and Steven M. Selvaggio, president of WPC. WPC will partner with several firms in order to complete the project. Foremost is WPC’s partnership with Hasz Consulting, LLC (HC), the firm responsible for the entire design of the Poncelet Kinetics technology. HC will provide engineers to the project for monitoring, testing, Page 9 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 and ongoing design revisions. Steven Selvaggio, P.E. is not only project manager for WPC but also the project liaison for HC. The entire process will be heavily dependent on the expertise of HC’s engineering staff led by mechanical engineering expert John R. Hasz, P.E. John has more than 40 years experience in research and development of advanced mechanical systems. The construction and deployment phases of the project will be completed with CE2 Engineers, Inc. (CE2), a well-known construction management and engineering firm with 30 years of experience, specializing in rural Alaska infrastructure projects. WPC has worked closely with CE2 throughout every phase of the project and will continue to do so. It is to be hoped that CE2 will continue to add its expertise to future installations of the proposed technology across Alaska. The electronics control package for the project will be provided by Energetic Drives, LLC (ED) based in Camas, Washington. The owner of many patents, ED is a cutting-edge technology developer in the field of energy conversion, especially renewable energy conversion. Ian Griffiths, president of ED, has more than 30 years experience in the field both as a high level manager for Parker Drives and as a developer for ED. Ian has assembled a very capable staff of engineers and scientists who formulate some of the most innovative technology for efficient energy conversion. The aluminum weldments which are a vital part of the design will be manufactured by Alaskan Copper & Brass Company based in Seattle. A very experienced marine aluminum builder, Alaskan Copper is a well-known and competent builder of aluminum marine structures of all kinds. WPC will also be partnering with Golden Valley Electric Association (GVEA) in order to connect the proposed project to GVEA’s grid at its Whitestone intertie location. GVEA has generously offered to allow the project to be interconnected and to provide technical and administrative assistance on that portion of the project. Other components of the project will be purchased from well-known companies, all experts in their fields, including: Brevini USA (epicyclic transmission), Northriver Boats (service boat for craft), and Ferguson Industrial Plastics (pontoons and wheel blades). Resumes for the people named above are attached to the application. (See Attached Part 4.Resumes) 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. Under the auspices of its Pilot Project License from the Federal Energy Regulatory Commission, Whitestone Power and Communications developed a detailed monitoring and reporting plan. That plan is attached to this application. (See Attached Part 3.Permits and Support) Copies of all reports will be provided to the Alaska Energy Authority. The points of contact for these reports will be as follows: Steven A. Selvaggio, P.E., Project Manager P.O Box 1630, Delta Junction, AK 99737 Phone 907-803-3021 Email steven.wsmech@gmail.com Steven M. Selvaggio, President, Whitestone Power and Communications P.O. Box 1630, Delta Junction, AK 99737 Phone 907-803-5432 Email steve@wca-ak.us Page 10 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 3.5 Project Risk Discuss potential problems and how you would address them. Whitestone Power and Communications has completed three years of intensive design and study. The velocity profile of the river has been mapped in terms of both depth and width at 10 different cross sections. The debris size, type, and distribution has been observed daily for two years in order to give the engineers tasked with designing the system the best possible idea of the design requirements for managing debris. In addition, tests have been completed on full size paddles for the turbine wheel in the water to determine their force, turbulence, and other impacts both on the river and on the structures. In addition, high fidelity design techniques including complete finite element analysis computer modeling of all components was completed. Many of the integral components of the system were selected to be commercial off the shelf components making them more reliable than untested products as well as being less costly. The possibility of technical difficulties in any prototype demonstration project is higher than for more hardened technologies. However, in this case, most of the equipment being used has been extensively tested in the field. The proposed technology was designed to be easily repairable in remote locations and even the electronics are entirely plug-and-play technology to minimize needed on site expertise for quickly repairing problems. WPC will keep an adequate stock of replacement parts on hand to minimize downtime. WPC also intends to intensively monitor the project due in part to FERC permit reporting requirements but primarily as a means of preventing catastrophic failure of components due to unexpected difficulties. Swift water and high debris loads are expected to create some growing pains in developing a hardened system; however, WPC will have engineers on site on a daily basis to assess performance and recommend upgrades as necessary both to prevent and repair problems. WPC will also have a work boat on site at all times and personnel on hand at all times to deploy on short notice in the event of any incident. Page 11 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Application 7/1/2013 SECTION 4 – PROJECT DESCRIPTION AND TASKS  The level of information will vary according to phase(s) of the project you propose to undertake with grant funds.  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application. For the purpose of Section 4 of this application, the requested information will be discussed from two perspectives as follows: (1) A description of the information as it applies only to the demonstration project, and (2) a description of the information as it applies to the target population of Alaska. 1. The proposed site for the project has been studied extensively and the available energy resource on an annual basis can be found in the attached FERC Pilot Project License Application Exhibit A PG 14-20. 2. The potential resource for Alaska is very high. In a study conducted for WPC, CE2 Engineers developed a state resource assessment which indicates that this technology has the potential to revolutionize power production in remote riverine communities across the state. The report of that study showing the potential sites is attached to this application under the title “Riverine Resource Assessment”. The use of renewable energy sources in Alaska has returned mixed results. While large scale conventional hydro projects have been relatively successful, the smaller scale power sources such as wind, solar and geothermal have been less so. Each of these forms of energy presents possibilities but also difficulties in realizing their potential. In the case of wind power which has been attempted in many places throughout Alaska, weather, high installation costs, and technical know-how to sustain the project after completion have been particularly problematic. Hydrokinetic technology offers a unique solution to these existing problems. Unlike wind power, rivers flow continuously, eliminating the need for power storage. WPC designed the Poncelet Kinetics RHK100 to operate in swift, shallow water without being damaged by river conditions and with little or no impact on the surrounding environment. In addition, the special focus of the design on producing a technology that can be easily repaired at small cost and with very little training makes this design ideal for small communities throughout Alaska. As the price of diesel continues to climb, the importance of affordable energy will only increase. In consideration of the vast riverine resources in Alaska, these conditions make this the right time to invest in hydrokinetic technologies. WPC’s complete design report written for the U.S. Department of Energy is attached to this application along with our FERC Hydrokinetic Pilot Project License Application. (See Attached Part2.Exhibits) These two documents completely outline the design, feasibility, and ROI of the project. Exhibit E of the FERC Pilot Project License Application presents a full list of all permits and licenses held by WPC for the purpose of the project. In addition to the permits shown in the Pilot Project License Application, WPC has received its FERC license and been assigned project number 13305. Page 12 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 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 proposed project is for the sole purpose of generating electricity through the use of hydrokinetic power, initially for the residents of the community of Whitestone. The community of Whitestone is currently receiving all electrical power from an intertie to the GVEA grid. WPC operates a backup power facility in the community. This makes the community of Whitestone an ideal test location for several reasons: since both of these power sources exist, the proposed project can be demonstrated working in parallel with both infinite and finite grids and in stand-alone mode operating on demand. The RHK100 is designed to operate in all three of these modes, making it the most flexible and adaptable renewable power generation technology available. The community of Whitestone has a well-developed electrical grid consisting of both overhead and underground high voltage, with a total of more than five miles of power line and a variegated power draw from small scale commercial to residential. An additional 2-mile intertie brings power across the Tanana River and provides a close tie-in location for the power produced by the RHK100 hydrokinetic turbine. The total draw of electrical power at Whitestone tops out at approximately 175 kW in the winter and 100 kW in the summer. The backup facility at Whitestone is a diesel installation constructed in 2008 at the same time the intertie to the GVEA grid was built. All equipment and facilities are state of the art and maintained at the highest level. 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. The existing energy resources are as follows: 1. GVEA grid power produced in Fairbanks, AK 2. WPC diesel power backup facility, total capacity 500 kW The impacts to existing energy infrastructure will not be substantial since the project will make use of existing transmission lines and will displace the power currently produced by GVEA only in the summer. The broader impact of the project should not be measured by its impact to the community of Whitestone; rather, the primary effect of the project will be to demonstrate a technology that can be used in many communities across Alaska and would significantly reduce their energy costs. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Whitestone has an energy market which is fairly typical for a remote Alaskan community. A small community representing less than 10 square miles, Whitestone is more residential than commercial. It does have some small scale industrial energy users such as a school, power plant, mechanic shops, emergency medical facility, and bulk fuel storage facility; the remainder of the power consumption is residential. All the energy produced by the proposed project would be electrical power, and in the summer it is anticipated that the production of the proposed project would entirely replace the electricity currently purchased from GVEA. The impact to customers is likely to be small. WPC intends to sell power to Whitestone customers at the same rate as GVEA. In addition, due to the state of the art backup facility and availability of GVEA power as backups, it is not anticipated that growing pains associated with the proposed Page 13 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 project will impact the quality of power to the end users. More generally, for installations in remote communities in Alaska, it is anticipated that the proposed project will represent a large decrease in the cost of electricity. This is especially true in the warmer parts of Alaska where the turbine might be able to be functional year round. However, due to its ability to operate without having to parallel with diesel generators, the proposed technology represents a large step forward in energy savings due to decreased maintenance, wear, and fuel use by replacing diesel power generation for the entire open water season. The RHK 100 is equipped to produce both three-phase and single-phase power and can be operated in an array to increase capacity. 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 1. A description of renewable energy technology specific to project location: The proposed project will install and demonstrate a 100 kW hydrokinetic turbine. The turbine is a Poncelet Kinetics RHK100 which is a pontoon mounted water wheel turbine. 2. Optimum installed capacity: 100 kW 3. Anticipated capacity factor: 100% during operation with operation during the summer months lasting as long as 50% of the year. 4. Anticipated annual generation: 336,000 kWh 5. Anticipated barriers: There are no anticipated barriers to construction and operation. 6. Basic integration concept 7. Delivery methods: Electrical power will be transmitted from the turbine to the shore and overland from the shore to the existing GVEA high line using a single marine grade armored cable. The estimated distance is 1,000 feet. For Section 4.3.1 see attached USDOE design report and FERC Pilot Project License Application Exhibits A, G, and F. (See Attached Part 2.Exhibits) 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 lands to be used by the project are owned by the State of Alaska. WPC has received all necessary land use and water rights permits from the Alaska Department of Natural Resources (see section 4.3.3, below). (See Attached Part 3.Permits and Support) 4.3.3 Permits Page 14 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 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 Applicable Permits: 1. Federal Energy Regulatory Commission Pilot Project License (received) 2. Alaska Department of Fish and Game Title 16 (received) 3. Alaska Department of Natural Resources Water Rights Permit (received) 4. Alaska Department of Natural Resources Land Use Permit (received) 5. United State Army Corps of Engineers Section 10 Letter of Permission (received) 6. National Fish and Wildlife Service (deferred to ADFG, Item 2) 7. National Marine Fisheries Service (deferred to ADFG, Item 2 and FERC, Item 1) 8. United States Coast Guard Section 25 Permit and PATON (received) 9. State Historical Preservation Officer (authorization to construct received) Copies of all required licenses and permits attached to this application. Additional details of WPC’s compliance with all applicable state and federal laws can be found on PG 2-6 of WPC’s FERC Pilot Project License Application which is attached to this application. At this time there are no outstanding permit issues that may create barriers. 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 Page 15 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 THREATENED OR ENDANGERED SPECIES WPC has been advised by the USFWS that there are no threatened or endangered species likely to be affected by the proposed project. For more information see the attached Exhibit E WPC’s FERC Pilot Project License Application. HABITAT ISSUES WATER RESOURCES The Tanana River is a relatively large river having discharge rates as high as 8,000 cfs in the summer months. Due to the high sediment load and remote location of most of the river, its water is not used for commercial purposes other than incidental transportation. This proposed project will not remove any water from the river nor will it discharge any water or other liquid into the river. For this reason, and because the amount of energy being harvested from the river is minute in comparison to the energy available, there would not be any noticeable changes to the river either with regard to hydrodynamics, water quality, river level or discharge rate. The proposed project would have approximately the same effect on the river as a large boat moving at low speed. For this reason, no substantive effects to the river environment are expected as a result of the proposed project. It is not expected that the proposed project will significantly impact the river environment either individually or cumulatively due to the fact that the project is small, consisting of one unit and will not harvest or discharge any water or other liquid into or from the river. AQUATIC RESOURCES The proposed project location is near a sensitive, high priority spawning area and migration path for several species of anadromous fish, most notably chum, coho and chinook salmon. The project will not have any effects outside the project area and even these effects should be minimal given the fact that this is a single unit which is similar in action to paddle wheel powered boats, many of which frequent Alaska’s rivers with no deleterious effects on the fish populations. The Poncelet Kinetics RHK100 and related systems will have little or no environmental effects on the aquatic environment because of its noninvasive design. The Alaska Department of Fish and Game has advised WPC that the pressure drop of 0.51 psi at the tips of the blades associated with power production is safe for all fish species which frequent the proposed project location. WPC will continue to consult with the local regulatory agencies as the project develops to ensure the safety and wellbeing of the aquatic species in the proposed project area. Additionally, WPC is in ongoing discussions with ADFG and USFWS to ensure that the exact placement of the float is acceptable given the known migration patterns of the anadromous fish populations. Page 16 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 CHARACTERIZATION OF FISH POPULATIONS The official species listing detailing the aquatic life which is present in the proposed project area at any given time throughout the year is as follows:  arctic lamprey Lampetra japonica  least cisco Coregonus sardinella  broad whitefish Coregonus nasus  humpback whitefish Coregonus pidschian  round whitefish Prosopium cylindraceum  inconnu (sheefish) Stenodus leucichthys  chinook salmon Oncorhynchus tshawytscha  chum salmon Oncorhynchus keta  coho salmon Oncorhynchus kisutch  arctic grayling Thymallus arcticus  northern pike Esox lucius  lake chub Couesius plumbeus  longnose sucker Catostomus catostomus  burbot Lota lota  slimy sculpin Cottus cognatus Many of these fish are anadromous and migratory although a few of them live their entire lives more locally. The primary concern for these species with regard to the proposed project is the potential effects to out-migrating juveniles which can be found in the proposed project area for much of the summer. A secondary concern regards the adults returning to spawn in fall. ADFG has raised some concerns that, without proper location, the proposed project may interfere with the migrating patterns. The initial project location will be in a less sensitive portion of the proposed project area. This will allow ADFG to monitor the effects of the float on fish behavior during the initial stages of the project in order to determine whether the proposed project is too invasive to operate in more sensitive locations. SEASONAL CHARACTERIZATION OF THE TANANA RIVER The Tanana River, in which the proposed project would be located, is the largest tributary of the Yukon River. During the summer months, it is fed primarily by glacial melt. As a result of this, it is heavily silt laden. The Tanana River is also considered a braided stream even though not all portions of the river are braided. The project area is a reach of the river which is not braided. The river levels vary by as much as 10 feet throughout the year. During the winter, the river is entirely spring fed and the water becomes clear. The portion of the Tanana River in which the proposed project would be located does not freeze over during the winter. This is a result of the large amount of upwelling spring water which holds the water temperature high enough to avoid freezing. The river experiences small ice flows in October and November each year which are dumped into it by the Delta River which empties into the Tanana River at the proposed project location. The river also experiences large ice flows in May. These usually only last for two or three days and are a result of the annual ice breakup that occurs on the Page 17 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 Goodpaster River which is several miles upstream of the project location. The depths of the river vary from less than 5 feet in some places to depths exceeding 30 feet in other areas. The proposed project location has an average summer depth over 20 feet. UNDERWATER NOISE WPC does not expect there to be high levels of underwater noise generated as a result of this installation. To begin with, the drive train and generator will not be submerged. In addition, the plunge depth of the blades on the wheel is only 2 feet. Additionally, these blades will be moving at about 50% of the speed of the water producing a pressure drop of only 0.51 psi at the tips of the blades. The amount of noise generated would be smaller than that of a small boat propelled by an outboard motor which is very common in Alaska’s rivers. WPC believes that there will be no environmental effects due to noise as a result of this installation. BOTANICAL RESOURCES A listing of the main plant species which can be found in the proposed project area is as follows:  white spruce Picea glauca  black spruce Picea mariana  balsam poplar Populus balsamifera  quaking aspen Populus tremuloides  paper birch Betula papyrifera  dwarf arctic birch Betula nana  alder Alnus spp.  willow Salix spp.  bush cinquefoil Potentilla fruticosa  prickly rose Rosa acicularis  highbush cranberry Viburnum edule  wild iris Iris setosa  reed-grass Calamagrostis spp.  grass Gramineae  sedge Carex spp.  horsetail Equisetum spp. The project will not have any significant impacts on these species since no land clearing or excavating will be necessary. WETLAND PLANT COMMUNITIES There are no wetland plant communities within the project boundary nor will the project have any significant impact on wetland communities upstream or downstream of the installation. Page 18 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 SIGNIFICANT ECOLOGICAL COMMUNITIES There are no significant ecological communities within the proposed project area or that would be affected by the proposed project. WILDLIFE RESOURCES At this time WPC has no reason to believe that any of these species will be impacted by the proposed project in any way nor have any of the regulatory agencies we have approached expressed any concern for any wildlife species. WPC can provide a list of the pertinent species if necessary. AVIAN SPECIES At this time WPC has no reason to believe that any of these species will be impacted by the proposed project in any way nor have any of the regulatory agencies we have approached expressed any concern for any avian species. WPC can provide an avian list if necessary. There will be no substantive individual or cumulative effects to the avian or wildlife environment as a result of this project. WETLANDS AND OTHER PROTECTED AREAS There are no wetlands or protected areas within the proposed project radius of affect. ARCHAEOLOGICAL AND HISTORICAL RESOURCES There are no archeological or historical resources within the proposed project radius of affect and WPC has received a letter of authorization from the Alaska SHPO. See attached. LAND DEVELOPMENT CONSTRAINTS All lands have been surveyed and all structures and necessary equipment designed and specified. For further information, please see the attached Exhibits A and F of WPC’s FERC Pilot Project License Application. TELECOMMUNICATIONS INTERFERENCE There is no anticipated telecommunications interference with the proposed project. AVIATION CONSIDERATIONS Since the project is sheltered by a bluff more than 100 feet high and extends only 14 feet above the water, it is not expected to interfere with aviation. Page 19 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 VISUAL, AESTHETICS IMPACTS The proposed project location is a very lightly populated area (fewer than 200 people and only one waterfront property) which is largely virgin forest land. The impact of this small installation is unlikely to be significant. The float itself has a footprint of 28-ft x 23- ft and the on shore foot print will be even smaller. Although some trees may need to be cut down, the project will use the existing GVEA easement as much as possible to facilitate installations. The installation of this float, which will be removed each winter due to the severity of the weather, will not cause significant environmental effects to the aesthetics of the area. IDENTIFY AND DISCUSS OTHER POTENTIAL BARRIERS At this time WPC believes it has addressed all foreseeable environmental barriers. There are no outstanding issues to be addressed until actual implementation of the project begins. All environmental concerns are addressed in greater detail in WPC’s FERC Pilot Project License Application in Exhibit E which is attached to this application and available on FERC’s website. Page 20 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:  Total anticipated project cost, and cost for this phase  Requested grant funding  Applicant matching funds – loans, capital contributions, in-kind  Identification of other funding sources  Projected capital cost of proposed renewable energy system  Projected development cost of proposed renewable energy system All costs shown in the Total Project Cost Breakdown table below were developed from manufacturers’ estimates and the applicant’s analysis of the scope of the project. Category Cost Percent of Total Conceptual Design Study $10,000 0.5% Final Design and Vendor Selection $150,000 7.7% Permitting and Site Selection $100,000 5.2% Construction Direct Labor and Benefits $169,890 10.1% Travel and Per Diem $79,500 4.7% Equipment $251,250 15.0% Materials and Supplies $898,891 53.5% Contractual Services $201,000 12.0% Construction Services $80,027 4.8% Total Phase IV Cost $1,680,558 100.0% Total Capital Cost of Renewable Energy System $1,579,558 81.4% Total Development Cost of Renewable Energy System $361,000 18.6% U.S. Dept. of Energy $120,000 6.2% Hasz Consulting, LLC $30,000 1.5% Whitestone Power and Communications $110,000 5.7% Construction Phase In-Kind $120,000 6.2% State  Funds $1,560,558 80.4% TOTAL $1,940,558 100.0% Total Project Cost Breakdown Funding Sources Note: Costs vary from those shown in the FERC Pilot Project License Application due to change in costs in the elapsed time since that document was prepared. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded Page 21 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 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.) The operation and maintenance cost table below indicates the projected cost associated with operating the project. WPC intends to pay for these costs from the revenue created by selling electricity to the community of Whitestone. Deployment Stabilizer Bridge 3 Men, 1 week $1,440 $12/hr Laborer Float 3 Men, 1 week $1,440 $12/hr Laborer SUBTOTAL $2,880 Testing Initial operational  cross check 2 Men, 2 days $4,800 Engineering Contractor Ongoing monitoring and maintenance 1 Man, 12 hr/wk, 22 weeks $6,600 $25/hr technician Parts and Supplies $1,500 SUBTOTAL $12,900 TOTAL $15,780 ANNUAL OPERATIONS COSTS 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 Electrical Power Purchasers: Residents of the community of Whitestone Sale Price: Pegged to GVEA GS2S rate Projected Rate of Return: 3.84% 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. 100 kW hydrokinetic turbine output per installation Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage Page 22 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non-labor c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] 100 kW b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 336,000 kWh ii. Heat [MMBtu] 0 c) Proposed annual fuel usage (fill in as applicable) 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.    Page 23 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 i. Propane [gal or MMBtu] 0 ii. Coal [tons or MMBtu] 0 iii. Wood or pellets [cords, green tons, dry tons] 0 iv. Other 0 Project Cost a) Total capital cost of new system $1,272,141 b) Development cost $659,345 c) Annual O&M cost of new system $15,780 d) Annual fuel cost $0.00 Project Benefits a) Amount of fuel displaced for i. Electricity 20,000 gallons ii. Heat 0 iii. Transportation 0 b) Current price of displaced fuel $3.68 c) Other economic benefits $527,000 local payroll and contractors d) Alaska public benefits The potential for hydrokinetic technologies to make a positive change in the cost of energy for Alaskan communities is high. However, for this possibility to be realized, the technology will have to be further developed and will have to demonstrate that it is safe for the environment. Given the potential of this project to demonstrate a technology which has been deemed safe for the environment by all relevant state and federal agencies and which is uniquely suited to Alaskan operating conditions, this project could well be the one which opens the door for almost unlimited development of hydrokinetics in Alaska and paves the way for millions of dollars saved for Alaskan communities. Power Purchase/Sales Price a) Price for power purchase/sale $0.21/kWh - $0.36.kWh Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.31 Page 24 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 Payback (years) 28 Year Income O&M Expense Projected Net  Benefit Projected Cumulative  Net Benefit 1 $70,560 $15,780 $54,780 $54,780 2 $71,901 $16,080 $55,821 $110,601 3 $73,267 $16,385 $56,881 $167,482 4 $74,659 $16,697 $57,962 $225,444 5 $76,077 $17,014 $59,063 $284,508 6 $77,523 $17,337 $60,186 $344,693 7 $78,996 $17,667 $61,329 $406,023 8 $80,497 $18,002 $62,494 $468,517 9 $82,026 $18,344 $63,682 $532,199 10 $83,585 $18,693 $64,892 $597,091 11 $85,173 $19,048 $66,125 $663,215 12 $86,791 $19,410 $67,381 $730,597 13 $88,440 $19,779 $68,661 $799,258 14 $90,120 $20,154 $69,966 $869,224 15 $91,833 $20,537 $71,295 $940,519 16 $93,577 $20,928 $72,650 $1,013,169 17 $95,355 $21,325 $74,030 $1,087,199 18 $97,167 $21,730 $75,437 $1,162,636 19 $99,013 $22,143 $76,870 $1,239,506 20 $100,895 $22,564 $78,331 $1,317,837 21 $102,812 $22,993 $79,819 $1,397,655 22 $104,765 $23,430 $81,335 $1,478,991 23 $106,756 $23,875 $82,881 $1,561,872 24 $108,784 $24,328 $84,456 $1,646,327 25 $110,851 $24,791 $86,060 $1,732,388 26 $112,957 $25,262 $87,695 $1,820,083 27 $115,103 $25,742 $89,362 $1,909,444 28 $117,290 $26,231 $91,059 $2,000,504 29 $119,519 $26,729 $92,790 $2,093,293 30 $121,790 $27,237 $94,553 $2,187,846 TOTAL $2,818,080 $630,234 $2,187,846 3.84% Annual  Rate of Return Projected increases in cost of power based on projections made by the U.S. Energy Information Administration. 4.4.5 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area. If the is for a PCE eligible utility please discus what the expected impact would be for both pre and post PCE. For the proposed prototype demonstration project, the effective electrical rate will remain approximately the same. The technology is projected to produce electrical power at a rate between $0.20 and $0.30 per kWh. In most cases in remote communities in Alaska this will represent a significant savings over the cost to generate power using diesel engines. Page 25 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 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 Due to the fact that the energy displaced is provided to the community of Whitestone by GVEA, it is difficult to quantify the fuel displaced by the project. However, in a typical diesel power installation, the amount of fuel displaced by the proposed project would be approximately 20,000 gallons per season. The anticipated annual revenue is given in Section 4.4.4 above. The most substantive public benefits, however, are likely to be longer term and more broadly distributed. As a demonstration project, the real benefit will be in the project’s ability to demonstrate new controls and power generation technology with applications specific to hydrokinetics and potentially broadly applicable to other renewable technologies. Based on the Riverine Resource Assessment in the attached design report, this technology has broad application across the state. In addition, the controls technology being demonstrated has capabilities which have not been used previously in Alaska including the ability to provide on- demand stand-alone power using a variable power source. The potential of this project, therefore, to revolutionize small scale renewable energy production in Alaska and cut energy costs for remote communities is high. 5.1.1 Public Benefit for Projects with Private Sector Sales Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. N/A. Renewable energy resource availability (kWh per month) Estimated sales (kWh) Revenue for displacing diesel generation for use at privet sector businesses ($) Estimated sales (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) Page 26 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum:  Proposed business structure(s) and concepts that may be considered.  How you propose to finance the maintenance and operations for the life of the project  Identification of operational issues that could arise.  A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation  Commitment to reporting the savings and benefits Whitestone Community Association (WCA) is a not-for-profit corporation organized in the State of Alaska to benefit the small rural community of Whitestone, Alaska. Under its licensed name, Whitestone Power and Communications (WPC), WCA will operate and maintain this project using standards of accountability acceptable in the not-for-profit arena. The maintenance and operations costs will be funded through sales receipts of electricity to the community of Whitestone. Due to the high level of development of Whitestone, no additional backup installations are necessary since the community already has a backup facility in place. The annual operations and maintenance costs as detailed above are expected to be less than $16,000 per year. As detailed in Exhibit A of its FERC Pilot Project License Application and in Section 8 of this application, the applicant is committed to real time reporting of all relevant parameters in addition to quarterly reports. The operational paradigm for this demonstration project is far more intensive than would be required for a proven installation. WPC will work with the system designer, Hasz Consulting, LLC to operate and maintain the installation. This effort will also include system optimization, development, improvement and modification as necessary. It is likely that Energetic Drives, LLC, responsible for the groundbreaking electronic controls package being used, will also be involved in this effort. Given the commitment of these entities to the project, WPC believes the proposed system has a high likelihood of success for sustainability. Hasz Consulting, LLC will have an engineer on site or on call daily for the first year. In addition, WPC operators will also be on site daily. A service boat for dedicated access to the float will be provided. Given the low projected cost of maintenance and high projected income for the project, it is not anticipated that funding will be a problem. In addition, the extensive use of commercial off-the-shelf components and the modular design of the system make it easily repairable to minimize down time. Page 27 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 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. Once this application is approved, WPC is prepared to begin immediately on the project. The language of WPC’s Pilot Project License from FERC requires work on the project to begin no later than October 2015. For this reason, WPC is preparing to begin work immediately. In order to accomplish this, WPC has already completed all the design, permitting and site evaluation work. The genesis of the project was in a velocity survey completed by a team from UAA directed by Tom Ravens. Their team completed the study in June of 2009. The study was conducted at the confluence of the Delta and Tanana Rivers. Several promising locations were identified. Based on that study a site was chosen at the confluence of the two rivers. This site was chosen because it was representative of typical Alaskan river conditions: (1) swift, shallow water, (2) high debris loads, (3) high sediment loads, and (4) high concentrations of aquatic life. The purpose of the proposed project is to demonstrate a technology designed to overcome these challenges. The proposed technology was designed with this in mind. In 2011 WPC was awarded a grant to complete the design work from the U.S. Department of Energy (USDOE), under their Marine and Hydrokinetic Program. The grant was administered through the Golden Field Office and was completed to the total satisfaction of USDOE. The performance of the grant resulted in statewide and nationwide resource studies, manufacture- ready drawings, and a business plan for the deployment of the technology across Alaska. After completing the design work, WPC applied for and received all necessary permitting at its own cost. This project is currently the only FERC-licensed in-river pilot project in Alaska. In addition, WPC has identified a complete line of equipment suppliers and contractors to work on the project. This project should be considered shovel-ready with funding being the only missing link. With the FERC requirement for construction to begin by October 2015, it is important to note that should funding not be secured through this grant opportunity, it is likely that WPC will have to surrender its FERC license and terminate the project. This would require the large labor and cost investment in FERC licensing and permitting to be repeated in the future, setting the schedule back by several years to repeat the work. Page 28 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 SECTION 8 – LOCAL SUPPORT AND OPPOSITION Discuss local support and opposition, known or anticipated, for the project. Include letters of support or other documentation of local support from the community that would benefit from this project. The Documentation of support must be dated within one year of the RFA date of July 2, 2013. The Alaska Department of Fish and Game has supported this project since inception, as evidenced through their letter of support, attached. (See Attachment Part 3.Permits and Support) Many members of the community of Whitestone have expressed their support of this project and are excited about the potential cost savings implied by this new technology. GVEA has also expressed support of this developing technology and the Poncelet Kinetics RHK100 Prototype Demonstration project specifically. They look forward to working with Whitestone Power & Communications to realize the goals set forth in this application. Please see attached letter. (See Attachment Part 3.Permits and Support) During extensive consultation and public discussions as part of the permitting process there have been no negative comments filed with Whitestone Power & Communications. Page 29 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 SECTION 9 – GRANT BUDGET Tell us how much you are seeking in grant funds. Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Provide a narrative summary regarding funding source and your financial commitment to the project Since its inception in 2009, WPC has been pursuing the development of a new hydrokinetic technology intended for use in Alaskan rivers. This effort has been made at a cost of more than $250,000. Of this, $120,000 was received through a grant from the U.S. Department of Energy. The remainder was contributed through labor of WPC volunteers and engineering contributed to the project by Hasz Consulting, LLC. In addition, UAA contributed the velocity survey and analysis to the project free of charge. In order to complete the construction phase of the project, WPC is requesting grant funds in the amount of $1,560,558. WPC will contribute the testing, reporting, and any necessary modifications needed to complete the demonstration portion of the project at a value in excess of $120,000. In addition, any ongoing permitting, reporting or remediation will be completed by WPC at its own cost. Please provide a short narrative, and cost estimate, identifying the metering equipment, and its related use to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. As part of its commitments to the Federal Energy Regulatory Commission, WPC has agreed to an intensive reporting regime with regard to this project. Performance of the system will be continuously monitored in real time. The electronic controls package provided by Energetic Drives, LLC will monitor and record power output, power factor, amperage, and voltage as well as keeping record of any interruptions in power. In addition, video surveillance will be used to monitor the installation along with daily inspection reports. Other than the daily inspection reports all other data collected by the system will be transferred using a SCADA system coupled with Ethernet capability. All this data will be available to the Alaska Energy Authority in real time and will be collated into a quarterly report by the applicant. The cost to set up this system is estimated to be in excess of $20,000. The monitoring labor is being contributed by the applicant. Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final Design and Permitting, and IV. Construction and Commissioning). Please use the tables provided below to detail your proposed project’s budget. Be sure to use one table for each phase of your project. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA at 907-771-3031 or by emailing the Grant Administrator, Shawn Calfa, at scalfa@aidea.org. Page 30 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. ) Design and Feasibility Documents Completed Completed $0 $0 $0 Bid Documents Completed Completed $0 $0 $0 Vendors Selected Completed $0 $0 $0 Award In Place July 2014 $0 $0 $0 Construction Order Long Lead Items August 2014 $601,250 $0 $601,250 Manufacture All Components February 2015 $510,361 $0 $510,361 Order Remaining Components and Ship Project Materials to Site March 2015 $121,280 $0 $121,280 Construct Turbine May 2015 $88,840 $0 $88,840 Construct Intertie May 2015 $174,827 $0 $174,827 Final Commissioning, Acceptance and Startup July 2015 $16,000 $0 $16,000 Testing and Integration Complete October 2016 $48,000 $120,000 In-Kind $168,000 Operations and Reporting Ongoing/ Annual $0 $15,780 Cash $15,780 TOTALS $1,560,558 $120,000 $1,680,558 Budget Categories: Direct Labor & Benefits $169,890 $0 $169,890 Travel & Per Diem $79,500 $0 $79,500 Equipment $251,250 $0 $251,250 Materials & Supplies $898,891 $0 $898,891 Contractual Services $81,000 $120,000 In-Kind $201,000 Construction Services $80,027 $0 $80,027 Other $0 $0 $0 TOTALS $1,560,558 $120,000 $1,680,558 Page 31 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 SECTION 10 – AUTHORIZED SIGNERS FORM Community/Grantee Name: Community of Whitestone/Whitestone Power and Communications Regular Election is held: Annually Date: March Authorized Grant Signer(s): Printed Name Title Term Signature Steven M. Selvaggio President 5 year Josiah D. Keller Vice President 4 year David J. DiGloria Treasurer 4 year Jinni Selvaggio Secretary 3 year I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Steven M. Selvaggio President 5 year Grantee Contact Information: Mailing Address: PO Box 1630, Delta Junction, AK 99737 Phone Number: 907-895-2374 Fax Number: 907-895-2375 E-mail Address: whitestoneassociation@gmail.com Federal Tax ID #: 20-0163891 Please submit an updated form whenever there is a change to the above information. Page 32 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application 7/1/2013 SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project web site. B. Letters or resolutions demonstrating local support per application form Section 8. C. For heat projects only: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. - Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. An electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Josiah Keller Signature Title Vice-President Date August 21, 2013 Page 33 RESOLUTION BE IT RESOLVED that the Board of Directors for Whitestone Community Association agreed on August 13, 2013 to apply to Alaska Energy Authority for the funding necessary to finalize the Whitestone Poncelet Kinetics RHK100 Prototype Demonstration Project. The board also agreed to authorize Steven A. Selvaggio, to represent Whitestone Community Association, dba Whitestone Power & Communications, in the grant application process. BE IT RESOLVED that the Board of Directors, to the best of their knowledge and with no intent to deceive, agrees that Whitestone Community Association is in good standing with respect to its existing credit and federal tax obligations. CERTIFICATE The undersigned hereby certifies that he or she is the Secretary of Whitestone Community Association, a corporation organized and existing under the laws of the State of Alaska; that the foregoing is a true and correct copy of a resolution duly adopted at a meeting of the Board of Directors of said corporation held on the 21st day of August, 2013 at which meeting a quorum was at all times present and acting; that the passage of said resolution was in all respects legal; and that said resolution is in full force and effect. Dated this 21st day of August, 2013 Jinni Selvaggio, Secretary Steven M. Selvaggio, President Josiah Keller, Vice-President David DiGloria, Treasurer Ben Mercier, Board Member Page 34