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.
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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.
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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.
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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
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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.
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Renewable Energy Fund Round VII
Grant Application - Standard Form
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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
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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,
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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
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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.
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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.
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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
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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
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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
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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.
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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
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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.
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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.
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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.
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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
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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
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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.
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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
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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.
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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 ($)
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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.
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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