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WtE Cover Letter and Grant Application - Signed
Cu�� " POWERING ALASKA'S FUTURE September 21, 2012 Shawn Calfa, Grant Administrator Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, AK 99503 Subject: AEA 13-006 — RE Fund Grant Application Round 6 Dear Mr. Calfa: Enclosed you will find Chugach Electric Association's (Chugach's) renewable energy grant application for a feasibility study for a waste -to -energy project. The grant application package includes: • The grant application including a grant/budget worksheet and a cost/benefit worksheet • A map of locations germane to this project • A professional bio for the project manager • An organizational chart of Chugach's Power Supply Division • A signed resolution from Chugach's Board of Directors Chugach's point of contact for this grant application is Ron Vecera, Director of Renewable Energy Business Development. He can be reached directly at 762-4759. Sincerely, v Bradley W. Evans Chief Executive Officer Chugach Electric Association, Inc. 5601 Electron Drive, PO. Box 19630Q Anchorage, Alaska 99519-6300 • (907) 5637494 Fax f907i 562-0027 - 1800) 478-7494 wv✓w.chugachefectric.com 0 info&hugochefec0c.ccm Renewable Energy Fund Round 6 GNIED Grant Application 4roENERGY AUTHORrrY Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round 6 of the Renewable Energy Fund. An electronic version of the Request for Applications (RFA) and this form are available online at: http:l/www.akener_qyauthority.oEg/RE Fund-6.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(a@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 satisfied and funding for an advanced phase is warranted. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER; • Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. • In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. AEA 13-006 Application Page 1 of 22 7/3/2011 Renewable Energy Fund Round 6 401E) p Grant Application i ENERGY AUTHOMY SECTION 1 —APPLICANT. INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Chugach Electric Association, Inc. Type of Entity: Electric Utility (Cooperative) Fiscal Year End: 12/31/12 Tax ID #92-0014224 Tax Status: -For-profit or tenon -profit check one Mailing Address Physical Address P.O. Box 196300 5601 Electron Drive Anchorage, Ak 99519-6300 Anchorage, Ak 99519 Telephone Fax Email 907 7624759 907 762-4191 1 Ron vecera@chugachelectric.com 1.1 APPLICANT POINT OF CONTACT 1 GRANTS MANAGER Name Title Ronald K. Vecera Director, Renewable Energy Business Development Mailing Address P.O. Box 196300 Anchorage, Ak 99519-6300 Telephone Fax Email (907) 762-4759 (907) 762-4191 Ron_vecera@chugachelectric.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) X An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or A local government, or ; A governmental entity (which includes tribal councils and housing authorities); 1.2.2 Attached to this application is formal approval and endorsement for its project by Yes its board of directors,. executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessary. (indicate Yes or No in the box ) 1.2.3 As an applicant, we have administrative and financial management systems and Yes follow procurement standards that comply with the standards set forth in the grant agreement. 1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached Yes grant form. (Any exceptions should be clearly noted and submitted with the application.) 1.2.5 We intend to own and operate any project that may be constructed with grant Yes funds for the benefit of the general public. If no please describe the nature of the . project and who will be. the primary beneficiaries. AEA13-006 Grant Application Page 2 of 22 713112012 Renewable Energy Fund Round 6ay.--)� n �I Grant Application 400MENERGYAJnHORnry SECTION 2 PROJECT SUMMARY This is intended to be no mare than 1-2 page overwew.of your project. 2.1 Project Title — (Provide a 4 to 5 word title for your project) Waste -to -Energy Feasibility Study 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. Anchorage: specific location to be determined. If a Waste -to -Energy (WtE) plant was constructed it could be by Chugach's Headquarters (5601 Electron Drive) or centrally located elsewhere in Anchorage, preferably near the solid waste transfer station (1111 E. 561h Avenue) to minimize handling and transportation logistics. 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 projects 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 of 907-771-3031 See 2.2 above. 2.2.2 Community benefiting Name(s) of the community or communities that will be the beneficiaries of the project. Communities that Chugach serves would benefit from the renewable energy. At the time a WtE plant would go into service, this would include communities such as Anchorage, Girdwood, Portage, Hope, Moose Pass, Cooper Landing, Tyonek and Seward. Residents of Anchorage that dispose of solid waste would benefit from reduced transportation and disposal costs. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 '; Renewable Resource Type Wind X Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre -Construction Construction Reconnaissance Design and Permitting X Feasibility Construction and Commissioning X Conceptual Design AEA13-006 Grant Application Page 3 of 22 713/12012 Renewable Energy Fund Round S MCI Grant Application MNK) ENEMYm7mofiry 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. This project is to perform a feasibility study, including a conceptual design, to assess the viability of a WtE plant. Other than some recyclable materials, municipal solid waste (MSW) in Anchorage is largely disposed of in the municipal landfill. The quantity of refuse currently being disposed of in this manner is approximately 375,000 tons per year. There may also be an opportunity to incorporate other fuel, such as wood being disposed of in local woodlots. WtE plants, while somewhat rare in the U.S., are very popular, efficient and environmentally effective in many European and Asian countries. If feasible, a WtE plant would be expected to provide energy, environmental, reliability, economic and community benefits. 2.5 PROJECT BENEFIT Briefly discuss the financial and .public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) A WtE plant would use renewable MSW generated in the Anchorage area. The possible benefits are significant and could include: • Reduced reliance on natural gas, lowering gas costs, moderating against volatile gas prices, and minimizing associated costs, such as for gas transportation and storage. Reduced gas usage, conserving constrained Cook Inlet gas supplies and increasing electric system reliability during gas supply interruptions or curtailments. • Reduced greenhouse gas emissions from combustion compared to landfilling the solid waste. • The possibility of collecting revenue from disposers of the MSW • Extended life of the municipal landfill. • Reduced trips by large commercial vehicles making the 32 mile round trip (much of it on Tudor and Muldoon Roads) from the central transfer station in Anchorage to the municipal landfill at the Glenn Highway and Hiland Road, reducing the time spent handling waste and externalities such as carbon emissions and traffic congestion. • Creation of construction and ongoing operational jobs. 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. The cost of a feasibility study, including a conceptual design, is estimated at $700,000. The majority of the funding is for professional services from an engineering firm that is experienced in WtE projects. Chugach is requesting a grant of $550,000 for these services and will provide a match of $150,000 to pay for the internal labor and expenses to procure the consultant, manage the project, provide engineering and analytical support, hire subcontractors, and pay for travel to visit at least one WtE facility that was recently or is currently being developed. AEA13-006 Grant Application Page 4 of 22 7/3112012 Renewable Energy Fund Round 6 � ► Grant Application GEE=)ENAGYAfrHORITY 2.7 : COST AND BENEFIT SUMARY Include a summaryof rant request and our ro ecf s total costs and benefits below_ g q .. y p. J Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $550,000 2.7.2 Cash match to be provided $150,000 2.7.3 In -kind match to be provided $ 2.7.4 Other grant applications not yet approved $ 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $700,000 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational projec#j ..- 2.7.6 Total Project Cost (Summary from Cost V1lorksheet $ To be Determined .. including estimates through construction) 2.7.7 Estimated Direct Financial Benefit (Savings) $ To be Determined 2.7.8 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 your application (Section 6.) SECTION 3 —.PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application.` 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s).' If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Chugach's project manager for this effort is Paul Risse, Senior Vice President of Power Supply. His professional bio is attached. Mr. Risse will be supported, as needed, by staff from within his organization (organizational chart attached) such as engineering or environmental as well as other types of expertise (financial, business analysis, other engineering, etc.) from elsewhere in Chugach. 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 Feasibility Study: AEA13-006 Grant Application Page 5 of 22 713112012 Renewable Energy Fund Round 6© Grant Application i41111111111K) ENERGY AUTHORMY Retain Consultant with Expertise in Issue RFP, review proposals and award WtE Project Development contract for feasibility study. 7/1/13 9/30/13 Performance of Feasibility Study Data Collection (site surveys, water quality & quantity, transmission interconnection, geotechnical, climatological, meteorological, labor rates, etc.) MSW Fuel Characterization (determine typical waste content, opportunity to use urban wood as a feedstock, etc.) Site Selection (evaluate Chugach location as well as an alternate site) Technology Screening (compare/evaluate alternative waste to energy technologies with respect to operations, advantages/disadvantages, costs, environmental issues, etc.) Plant Design Basis (develop plant design for selected technology and site) Conceptual Design (develop for selected technology and site including site layout, mass and heat balance diagrams, water mass balance diagram, plant configuration and systems description, fuel supply logistics and constructability review) Capital Cost Estimate (estimate based on current market pricing, cost data for similar facilities and adjustments for scope or regional differences) Preliminary Permitting and Environmental Qualitative Assessment (identify applicable permits/approvals and agencies and key environmental issues and risks) Preliminary Project Milestone Schedule (estimated duration of major project tasks and milestones for project development, environmental permitting, engineering, procurement and construction) Feasibility Study Report (formal report that summarizes study components above and provides findings and recommendations) 10/1 /13 1 6/30/14 AEA13-006 Grant Application Page 6 of 22 7/3//2012 Renewable Energy Fund Round 6 Grant Application ENERGYAUTHORfI"Y 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. This project will be managed by Paul Risse, who will supervise the efforts of an engineering consultant to be selected. The consultant selected to perform the feasibility study will be one that is experienced in WtE engineering and project development. Chugach staff with some subcontract support will assist with engineering, environmental, economic analysis and other task related matters. Chugach will work with local stakeholders, including solid waste collectors, recyclers and municipal officials who have an interest in the cost and operation of the municipal landfill and the planning for future landfill needs. Chugach has also been conferring with JL Properties, a local real estate development company who owned and recently sold Alaska Waste, the refuse utility for most of Anchorage, but who retained the rights to the waste stream. 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. Chugach will keep the AEA apprised of the project's status by preparing routine reports that conform to AEA's reporting requirements and by other exchanges of information on an as - needed basis. 3.5 Project Risk Discuss potential problems and how you would address them. The risk to performing a feasibility study is the expenditure of funds for a project that may not be feasible. If the project evolves, the largest risk will likely be permitting the facility. This is because of the stigma of "garbage burning" and a perception of odor and other externalities. As a result, while some retrofitting of WtE plants has occurred in the U.S., very few new plants have been developed. However, the technology of WtE has changed over the years and these plants are odor and emission free. They are very common in Europe and countries, such as Japan, that have minimal energy resources and limited room for waste disposal. In Germany, for example, all refuse that is not recycled is incinerated for energy generation. AEA13-006 Grant Application Page 7 of 22 7/3//2012 Renewable Energy Fund Round 6 �0 Grant ADDlication 4111111111111111E)ENERGY AurHORrrY SECTION 4- PROJECT DESCRIPTION AND TASKS. vary 9 p (j _ project Y + The level of information will accordin to phase(s) s of the ro'ecf 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. Chugach's proposed study will assess the feasibility of locally generated MSW as a potential energy resource. While there are alternative fuels, namely natural gas, refuse is a renewable fuel that is untapped at this time, other than some gas from refuse already landfilled. It would provide diversification of the generation mix, conserve the supply of Cook Inlet natural gas and mitigate logistical issues related to gas transportation and storage. 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. Chugach's existing energy system includes gas -fired plants at Beluga (7 units) and International (3 units). Chugach sold its Bernice Lake power plant to Alaska Energy & Electric Cooperative/Homer Electric, but has contractual rights to the capacity through 2013. The combined capacity of these 3 plants is about 500 MW. The Beluga and International units are all expected to be retired within the next 10 years. Chugach is currently in the process of finishing the 183 MW Southcentral Power Project (SPP). Chugach owns 70% of this power plant, which is expected to be fully operational beginning in early 2013. Anchorage Municipal Light & Power (ML&P) owns the other 30%. Chugach also owns a hydro plant at Cooper Lake with a capacity of 19.2 MW, has a 30% ownership interest in the 47 MW Eklutna hydroelectric plant and purchases hydro energy from the State-owned Bradley Lake project with a 30% share of that 126 MW plant. A WtE plant would provide generation and fuel diversity and would be operated as a base load unit. 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. Chugach's existing energy resources are currently about 90% gas fired and 10% hydro. The commercialization of the Fire Island Wind Project (FIWP), currently underway, will change these amounts by contributing about 4% of the total energy requirement. AEA13-006 Grant Application Page 8 of 22 713112012 Renewable Energy Fund Round 6 GEE, D n i; Grant Application iMWK:) EwERWAurHORrry A WtE plant would have a positive impact on the existing energy system by diversifying the energy resources needed to meet base load demand. A WtE plant could be integrated into the existing generation mix as a base -load unit. These plants have a consistent supply of fuel and a very high capacity factor (90-95%). This would increase system reliability, especially if there was a natural gas supply disruption or curtailment. A WtE plant would allow marginal Chugach units to be used less frequently and perhaps to be retired sooner. 4.2.3 Existing Energy Market Discuss existing energy use and its market customers. Discuss impacts your project may have on energy The existing energy market includes Chugach's retail consumers and wholesale customers Matanuska Electric, Homer Electric and the City of Seward. Wholesale contracts with Homer and Matanuska end in December 2013 and December 2014, respectively, so it is doubtful that they will still be customers of Chugach by the time a WtE plant would go into service. A successful WtE project would have a positive effect on this market by providing competitively priced renewable energy that increases system reliability and reduces the use of increasingly expensive and voiatilely priced natural gas. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system- • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods The proposed system is a WtE plant that uses locally generated MSW. Specifics, such as technology options, capacity and anticipated annual generation, integration, etc. will be an outcome of the proposed feasibility study. 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The study will assess two locations. The primary location is a 16 acre parcel at Chugach's main campus on Electron Drive in Anchorage that is currently being used as a "lay down" area for the SPP. This site will be available for other uses upon completion of SPP construction in 2013. This location is 2 miles from the solid waste transfer station and would provide for very close interconnection to the electrical transmission system, gas system and water and wastewater system. This is the primary site for evaluation because it is owned by Chugach and information such as meteorological and geotechnical data has previous!y been collected. AEA13-006 Grant Application Page 9 of 22 7/3//2012 Renewable Energy Fund Round 6 UMD A A _ Grant Application iMMEED ENERGY AUTHORMY An alternate, unspecified location would be proximate to Anchorage's central solid waste transfer station which is near East 56 h Avenue and Juneau Street. This would allow for minimal handling or a short haul of the refuse to a WtE plant. A central location would also provide relatively convenient transmission access. Land near the transfer station would need to be acquired. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. • List of applicable permits • Anticipated permitting timeline • Identify and discussion of potential barriers Permitting will clearly be an issue for this type of project. Assessing specific requirements will be part of the study. 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 Environmental and land use issues will apply and their assessment will be part of the study. 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 This will be determined as part of the study. AEA13-006 Grant Application Page 10 of 22 7/3//2012 Renewable Energy Fund Round 6 iMOMD 4EWDONE) Grant Application ENERGYAUfHOR1TY 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities then serve.) Projected O&M costs will need to be determined. While the amounts are not known, it is certain that any and all cost recovery will be through tariffed rates reviewed and approved by the Regulatory Commission of Alaska (RCA). 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)lcustomer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant -funded project Chugach would use any energy produced from a WtE plant as part of its power supply portfolio. While the rate per kWh is not known, it is reasonable to assume an amount less than or similar to existing rates or the project would not be economically beneficial. Chugach's current cost per kWh (generation only) is about 7.5 cents. Rate recovery for the energy would be on an RCA approved cost -of -service basis with no return on investment on the portion paid for with grant funding. 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 farm provided below Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability 375,000 tons of refuse annually in Anchorage currently being landfilled. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage 1 The Railbelt grid connects all customers of Chugach Electric Association, Horner Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. AEA13-006 Grant Application Page 11 of 22 7/31/2012 Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) Project Cost a) .-Total capital cost of new system To be determined. b) w, Development cost s To be determined. AEA13-006 Grant Application Page 12 of 22 7/3//2012 Project Benefits Power Purchase/Sales Price a) Price.for power purchase/sale To be determined (power to be sold to Chugach Members on an RCA approved cost basis). Project Analysis a) Basic Economic, Analysis Project benefittcost ratio To be determined. Payback (years) To be determined. 4.4.5 Proposed Biomass System Information Please address the following items, if know. (For Biomass Projects Only) 4 What woody biomass technology will be installed (cord wood, pellets, chips, briquettes, pucks). Municipal solid waste. Most of the other items below are to be determined; many via the proposed feasibility study. Efficiency of the biomass technology. TBD. AEA13-006 Grant Application Page 13 of 22 7131/2012 Renewable Energy Fund Round 6 4ELD e1 Grant Application 4f, GONE) ENMGYAUTHORITY • Thermal or electric application. Electrical generation. • Boiler efficiency. TBD. • Displaced fuel type and amount. Natural gas. Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture percentage. Not applicable. • Estimated cords of wood to be used per year, specify whether dry or green and the moisture percentage. Not Applicable. • Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the biomass resource? Alternatives include land that would need to be acquired or land that Chugach already owns. An agreement for rights to the waste stream would be required. • Inventory data. How much biomass is available on an annual basis and what types (species) are there, if known? Estimate of 375,000 tons per year of non -recycled solid waste produced in Anchorage is currently being landfilled. Characterization of the waste (fuel) is required. There may also be the opportunity to use other fuels, such as urban wood, which is currently directed to wood lots. AEA13-006 Grant Application Page 14 of 22 7/3//2012 Renewable Energy Fund Round 6© Grant Application ME%YAUTHORnY The primary benefit of a WtE project is the use of MSW, which is a plentiful and renewable fuel, to offset natural gas use. Use of MSW as a fuel conserves Cook Inlet gas and mitigates its price volatility. In addition to saving on natural gas purchases, this also reduces other costs associated with the gas, such as transportation and storage. Further, Chugach should earn revenue on the MSW delivered to a WtE plant because it could provide a savings to the disposer of the waste compared to the tipping (i.e., disposal) fee being paid at the landfill. For illustrative purposes, a 20 MW WtE plant with a 95% capacity factor would produce 166,440 MWh of energy per year. After the commissioning of the SPP, Chugach's system average heat rate is expected to be about 8,000 btu/kWh. Assuming this heat rate, the production of 166,440 MWh with WtE would offset the consumption of 1,331,520 mcf of gas. At a cost of $6/mcf, this is a reduction in gas cost of $7,989,120. Additional electric revenue from the energy produced is not the goal for a successful WE project. Chugach is not proposing to develop this project as an IPP with the goal of selling the energy to another party at a profit. Rather, the goal is to generate renewable energy in lieu of gas fired energy, and for our members to benefit from the diversification of the generation mix by including a resource that uses an inexpensive fuel and provides rate savings and fuel supply security to our members. Some additional revenue may result from the sale of renewable energy credits (RECs). Chugach recently registered the FIWP with the North American Renewables Registry and is currently developing a program to sell RECs in the open market and/or via a retail "green pricing" program. RECs from a WtE project would add to the overall inventory of RECs available for Chugach to sell via the selected options. A significant public benefit is the extended life of the municipal landfill. Landfill costs and finding new locations for landfills is an issue nationally, which can go so far as the need to transport refuse across state borders. While land is plentiful in Alaska, the municipality of Anchorage is land -locked by mountains and water and even here there is limited available land for a new landfill. Another benefit is the reduced time, fuel and equipment needed for disposal compared to how waste is currently handled. Locating a WtE plant near the central transfer station in Anchorage reduces the carbon emissions and traffic congestion from large vehicle transport of waste to the municipal landfill, a round trip of 32 miles on congested Anchorage streets, including significant time on Tudor and Muldoon Roads. A map of locations germane to this project is attached. There will also be an economic benefit from high paying, skilled jobs during the construction of the plant and then for the ongoing operations and maintenance. AEA13-008 Grant Application Page 15 of 22 7/3//2012 Renewable Energy Fund Round S 4NED _ , Grant Application i41111111111K) ENERGYAUTHORrrY A WtE project would be very sustainable. It would be incorporated into Chugach's existing generation portfolio and its costs would be part of Chugach's revenue requirement. Chugach has extensive experience in construction, operating and maintaining power plants and would operate and maintain the facility to ensure plant life and operating performance is as expected. Ongoing fuel supply should not be an issue as MSW is clearly a renewable resource that is replenished daily. Chugach commits to reporting savings and benefits. Other than previous exchanges of information with JL Properties and some internal analysis and research, Chugach is in the early stages of embarking on this project. A feasibility study by an engineering firm experienced with WtE projects is a step to significantly advance the concept and determine if it is worth pursuing. No other grants have been received for this purpose. If this grant is received, Chugach will move forward immediately. SECTION 8— LOCAL SUPPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. Chugach has been discussing this project with potential stakeholders and interested parties. Chugach has maintained an ongoing dialogue with JL Properties, former owners of Alaska Waste, and the party who originally envisioned this project. Prior to selling Alaska Waste, JL Properties spent in excess of $100,000 conducting analyses and conceptual studies of a WtE plant. Although JL Properties sold its solid waste utility, it retained the rights to the waste stream. JL Properties and Chugach are currently in the process of formulating a Memorandum of Understanding to work on this project together. The volume of MSW collected by Alaska Waste, for which JL Properties has the rights, is approximately two-thirds of the total in Anchorage, with the majority of the rest collected by the municipal -owned Solid Waste Services. Chugach has also discussed this project with the Municipality of Anchorage (MOA). The MOA collects revenue from landfill disposal fees but also has in interest in minimizing long-term costs and issues related to the landfilling of refuse. The MOA has also begun selling gas from the landfill for electric generation at Joint Base Elmendorf Richardson (JBER). The MOA's commitment to the landfill gas project may impede the development of a WtE facility. However, the landfill gas comes from many years of accumulated refuse, so it may be possible that the benefits justify using new refuse for a WtE project. Part of the WtE feasibility study will be to examine the economics to determine if there are business models for both Chugach and the MOA that allow the development of a WtE project. AEA13-006 Grant Application Page 16 of 22 7/31/2012 Renewable Energy Fund Round 6 ME) A - Grant Application ENERGY AUTHORITY Opposition from this project may come from individuals or entities who perceive it as "garbage burning" and are worried about odor or other externalities. This is a perception from older plants that lack the modern technology for the handling and cleaning of the emissions that is standard today. A WtE plant would actually significantly reduce emissions and odors compared with how waste is currently handled. Overcoming this perception will require some education and outreach. Another source of opposition may be based on a belief that a WtE plant will reduce recycling. Waste is currently sorted and recycled before it is transferred to the landfill. A WtE plant would not affect this process. SECTION 9 = GRANT BUDGET Tell us how much you want in grant funds Include any investments to, date and funding so urces, how muchis being requested in grant funds, and additional investments you will make as an applicant. Provide a narrative summary regarding funding sources and your financial commitment to the project. Chugach is seeking $550,000 in grant funds for this feasibility study. Chugach is proposing to match with $150,000. Chugach's proposed match includes $90,000 for internal labor to procure a consultant, manage the project and provide engineering, environmental, analytical and other support, $40,000 for subcontractors to support this effort, $15,000 to pay for staff travel to one or two WtE facilities that are currently or have recently been developed, and $5,000 for miscellaneous expenses, such as advertising for the consulting services. While the proposed feasibility study would have several specific tasks (see section 3.2) they are not broken out in the budget worksheet. Absent a contractor proposal, it is difficult to say how much each individual task would cost and how long each task would take. Thus, the tasks comprising the feasibility study have been considered as a whole for purposes of the schedule and the proposed budget. Applications should include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (Reconnaissance, Feasibility, Conceptual Design, Design and Permitting, and Construction). Please use the tables provided below to detail your proposed project's budget. Be sure to use one table for each phase of your project. 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 scalfaO-aidea.orq. A Ur a of Matching Funds Y Milestone or Task Anticipated Cornpietion Rill Fund f Grantee Matching ' Cashfln ,. r...: , Tt)iAi_S Date Grant Funds Funds kind/Federal: Grants/Other,, State .s .. Gcant�tQther Feasibility Study: $ $ $ Project scoping, contractor $ 0 $ 20,000 $ 20,000 solicitation and selection 9/30/13 Cash AEA13-006 Grant Application Page 17 of 22 713112012 Renewable Energy Fund Round 6 Grant Application idIED 40W�)ENERGYAMTHORITY Completion of feasibility study tasks and preparation of a final report (see detailed tasks in section 3.2 6/30/14 $550,000 $130,000 Cash $680,000 TOTALS7 $550,000 $150,000 $700,000 Bud et Cate ories.:- :,> Direct Labor & Benefits $ $ 90,000 Cash $ 90,000 Travel & Per Diem $ $ 15,000 Cash $ 15,000 Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $550,000 $ 40,000 Cash $590,000 Construction Services $ $ $ Other $ $ 5,000 Cash $ 5,000 TOTALS $550,000 $150,000 $700,000 Source of Matching " :. Anticipated RE -'Fund : Grantee : Funds Cashlln- Millestone or Task Completion Grant Funds Matching kindlFecieral TOTALS', Date Funds Granits/Other State (List milestones based on phase and type of project. $ $ $ See Milestone list below. ) I 1 1$ I$ 1 1$ ! TOTALS 1. $ $ Bud et.Cate cries. Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ .Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services J $ $ $ Other $ $ $ TOTALS $ $ $ Anticipated RE= i=und Grantee Source of Milestone or Task ; TOTALS com letian :, , .Grant Funds.[�.Mstchlrxg.�,.Mb tchlp AEA13-006 Grant Application Page 18 of 22 7/3/12012 Renewable Energy Fund Round S Grant Application i4IIIIIIIIIIED ENERGYAUTHOAITY n a Date ='Funds Funds CasbAn- kind/Federal Grants/Other State GrantsfOther tuisr muesiones Dasea on phase and type of project. $ $ $ See Milestone list below. $ $ 1 $ TOTALS $ $ $ .Budget Categories: , Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS Source of . Matching. '. RE- FundAnticipated = Funds Cashlin- Milestone or Task Completion Grant Funds 'Matching . kind/Federal TOTALS' < Date Funds GrantstOther A ' State ; (List milestones based on phase and type of project. $ $ $ See Milestone list below. $ $ $ TOTALS .: $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem - $ $ $ Equipment - $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS - $ $ Milestone ar.Task.. r Antic ed - uqd Grnte4 ouil+e oi;< . i0. AEA13-006 Grant Application Page 19 of 22 7/31/2012 Renewable Energy Fund Round 6 Grant Aaglication E AUTHORrFY ;G fi t.ompietlon ur8nt Funds Matcning ; Matctling Date ,t Funds Funds - Cashlin kind/Federal Grants/Other State Grants/Other (List milestones based on phase and type of project. $ $ $ See Milestone list below. 1 I I 1$ 1$ 1 1$ 1 TOTALS I $ $ $ Budget Cate ones: . Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ t w ment zli Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services Other $ $ $ TOTALS $ $ $ Prnipr4 Milpcfnnac thaf chnidel hp nrtrtrpanarl in Rurinof Prnnncal Reconnaissance Feasibility Design and Permitting Construction 1. Project scoping and 1. Project scoping 1. Project scoping 1. Confirmation that all contractor solicitation. and contractor and contractor design and feasibility 2. Resource solicitation. solicitation for requirements are identification and 2. Detailed energy planning and design complete. analysis resource analysis 2. Completion of bid 3. Land use, permitting, 3. Identification of 2• Permit applications (as documents and environmental land and regulatory needed) 3. Contractor/vendor analysis issues, selection and award 4. Preliminary design 4. Permitting and 3. Final environmental 4. Construction Phases analysis and cost environmental assessment and 5. Cost of energy and analysis mitigation plans Each project will have market analysis 5. Detailed analysis of (as needed) unique construction 6. Simple economic existing and future 4. Resolution of phases, limitations, analysis energy costs and land use, right of and schedule markets way issues constraints which 7. Final report and 6. Assessment of should be identified recommendations alternatives 5. Permit approvals by the grantee 7. Conceptual design 6. Final system 5. Integration and analysis and cost design testing estimate 7. Engineers cost 6. Decommissioning old 8. Detailed economic estimate systems and financial 8. Updated 7. Final Acceptance, analysis economic and Commissioning and 9, Conceptual financial analysis Start-up business and 9. Negotiated 8. Operations Reporting operations plans power sales AEA13-006 Grant Application Page 20 of 22 7/31/2012 Renewable Energy Fund Round 6 Grant Application ilp ENERGY AUTHORnY 10. Final report and agreements with recommendations approved rates 10. Final business and operational plan SECTION 10 AUTHORIZED SIGNERS FORM Community/Grantee Name: Regular Election is held: Date: Authorized Grant Signers : Printed Name Title Term Signature I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Grantee Contact Information: Mailing Address: Phone Number: Fax Number: E-mail Address: Federal Tax ID # Please submit an updated form whenever there is a change to the above information. AEA13-006 Grant Application Page 21 of 22 713112012 Renewable Energy Fund Round 6 dom Grant Application .■1K-DENERGY AUTHORrrY SECTION 11 = ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION. A. Contact information, resumes of Applicant's Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. Applicants are asked to separate resumes submitted with applications, if the individuals do not want their resumes posted. B. Letters demonstrating local support per application form Section 8. C. An electronic version of the entire application on CD per RFA Section 1.7. D. Governing Body Resolution or other formal action taken by the applicant's governing body or management per RFA Section 1.4 that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application. Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Bradley W. Evans Signature Title Chief Execu a fficer Date AEA13-006 Grant Application Page 21of 22. 713112012