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HomeMy WebLinkAboutGrantApplication6_JuniperFeas_NO RESUMES GRANT APPLICATION – FOR – JUNIPER CREEK HYDROELECTRIC PROJECT FEASBILITY STUDY SEPTEMBER 2012 ~ SUBMITTED TO ~ ALASKA ENERGY AUTHORITY RENEWABLE ENERGY GRANT PROGRAM – ROUND VI RFA #AEA-13-006 ~ SUBMITTED BY ~ RAM VALLEY, LLC 3527 NORTH POINT DRIVE ANCHORAGE, AK 99502     Renewable Energy Fund Round 6 Grant Application AEA 13-006 Application Page 1 of 21 7/3/2011 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://www.akenergyauthority.org/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@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. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 2 of 21 7/3//2012 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) RAM VALLEY LLC Type of Entity: INDEPENDENT POWER PRODUCER Fiscal Year End December 31 Tax ID # none Tax Status: X For-profit or non-profit ( check one) Mailing Address 3527 North Point Drive Anchorage, AK 99502 Physical Address SAME Telephone 907-248-0058 Fax none Email DBRAILEY@ALASKA.NET 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name DAVID BRAILEY Title Managing Member, RAM VALLEY, LLC Mailing Address 3527 North Point Drive Anchorage, AK 99502 Telephone 907-248-0058 Fax none Email DBRAILEY@ALASKA.NET 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 its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached grant form. (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. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 3 of 21 7/3//2012 SECTION 2 – PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title – (Provide a 4 to 5 word title for your project) JUNIPER CREEK HYDROELECTRIC PROJECT 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. 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. The project is located on Juniper Creek, a tributary of Eagle River near Anchorage. This project is located at approximately 61d 26’N, 149d 27’ W. 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Communities that will benefit from this project include those communities on the railbelt energy grid. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels X 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 Conceptual Design Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 4 of 21 7/3//2012 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The proposed project is a run-of-river hydroelectric project located on private property along Juniper Creek in the Eagle River Valley, approximately 10 miles from Eagle River, Alaska. The proposed project would include an intake / diversion structure at approximately the 1900-foot elevation and powerhouse at the 1500-foot elevation. The design flow is estimated at 10 to 20 cfs, for an estimated installed capacity of 250 to 500 kW. Participation of adjacent downstream property owners would increase the head available for the project from 400 feet to either 900 feet or 1,100 feet if one or two adjacent land owners were to participate. This would increase installed capacity to as much as 1,300 kW. Ram Valley expects to determine the participation status of these land owners prior to the start of the feasibility study. 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 feasibility study of Juniper Creek will benefit the railbelt population by determining if a viable hydroelectric project can be constructed at Juniper Creek, and providing environmental, technical, and economic analysis of that project. In the near term, the public benefit is the study results. If the project is viable and constructed, the public will benefit from competitively-priced clean renewable energy. 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 the feasibility study will be $172,700. Of this cost, Ram Valley, LLC will contribute $44,800 as cash and in-kind services and requests a $127,900 grant. 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. $127,900 2.7.2 Cash match to be provided $ 2,000 2.7.3 In-kind match to be provided $ 42,800 2.7.4 Other grant applications not yet approved NA 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $172,700 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.6 Total Project Cost (Summary from Cost Worksheet including estimates through construction) $4,300,000 2.7.7 Estimated Direct Financial Benefit (Savings) $5,580,000 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 5 of 21 7/3//2012 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 5.) See narrative for other benefits. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 6 of 21 7/3//2012 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. Mr. David Brailey will be the project manager for this project. Mr. Brailey’s resume is attached to this application. No management assistance is expected or required by AEA. 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 Grant Agreement with AEA Sign Grant Agreement July 2013 Sept. 2013 1. Project Management, Scoping and Contractor Solicitation Sign Contract Sept. 2013 Oct. 2013 2. Detailed Energy Resource Analysis Topo surveys, hydrology Oct. 2013 Oct. 2014 3. Identify Land and Regulatory Issues Oct. 2013 Feb. 2014 4. Permitting and Environmental Analysis Fish study Oct. 2013 July 2014 5. Market Analysis Jan. 2014 July 2014 6. Assessment of Alternatives Mar. 2014 Aug. 2014 7. Conceptual Design Analysis and Cost Estimate Mar. 2014 Aug. 2014 8. Detailed Economic and Financial Analysis Aug. 2014 Sep. 2014 9. Business and Operations Plans Aug. 2014 Sep. 2014 10. Draft Final Report Sep. 2014 Oct. 2014 11. Final Report Address comments Nov. 2014 Dec. 2014 Schedule is based on timely signing of grant agreement. Tasks are based on months from grant agreement signing. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 7 of 21 7/3//2012 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. Ram Valley, LLC intends to contract with Polarconsult Alaska, Inc. to perform engineering consulting tasks associated with the feasibility study. Qualifications of Polarconsult and their key personnel are attached to this proposal. Ram Valley would use the resources and expertise of Brailey Hydrological Consultants, owned by David Brailey, to perform on-going hydrology data collection and analysis and related professional services in support of the project and study. Brailey Hydrological Consultants possesses the required equipment necessary to conduct flow measurements and hydrological studies of the project area. 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. David Brailey will be the liaison between Ram Valley, Polarconsult, and the Alaska Energy Authority for the duration of this project. Mr. Brailey will submit quarterly reports to the Alaska Energy Authority throughout the project. 3.5 Project Risk Discuss potential problems and how you would address them. This project is still in the study phase and as such there is limited risk associated with the project at the current level of study. In the event the studies conclude the project is not feasible, Ram Valley LLC will not pursue the project and there is no risk. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 8 of 21 7/3//2012 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. Ram Valley, LLC has been monitoring the hydrology of Juniper Creek over the past three years. Winter low flows are approximately 3 cfs, and sustained summer flows (June 15 to October 1) are 15 to 20 cfs (see hydrograph in Attachment E). Available head on Ram Valley’s property is approximately 400 vertical feet. A design flow of 10 to 20 cfs would result in an installed capacity of approximately 250 to 500 kW. Participation of adjacent downstream property owners would increase the head available for the project from 400 feet to either 900 feet or 1,100 feet if one or two adjacent land owners were to participate. This would increase installed capacity to as much as 1,300 kW (see site map in Attachment E). 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. Matanuska Electric Association, Inc. (MEA) serves the project area. MEA is currently building a new generation facility in Eklutna that will meet all of its power needs starting in 2015. MEA also receives a significant amount of electricity from the existing Eklutna Lake and Bradley Lake hydroelectric facilities, and a minor amount of electricity from independent power producers in the region. This project would displace fuel for the new Eklutna Power Plant. 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. MEA currently relies on a combination of hydroelectricity (about 10%) and natural gas (about 90%) for electrical generation. After 2015, this energy mixture will remain largely unchanged, although MEA will have the option of burning fuel oil at its new Eklutna Power Plant should natural gas supplies not be available. The new MEA plant will also be more efficient than Chugach Electric Association’s Beluga Power Plant which currently supplies substantially all of MEA’s non-hydro electricity. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 9 of 21 7/3//2012 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The railbelt energy grid is the largest utility grid in Alaska and can readily absorb all of the electrical output of this project. This project by itself will not have a significant impact on energy customers, however the cumulative impact of this and other small hydro projects being studied or built on the railbelt will tend to lower and stabilize rates over time by reducing dependence on natural gas for electrical generation. In total, approximately 20 MW of mostly run-of-river small hydros are currently in various stages of study or development throughout the railbelt. During the summer months, this equates to more than 1/5th of MEA’s total system demand. 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 specific project design would depend on the preferred project configuration that would be determined by the proposed feasibility study. Generally, the project would consist of the following major components: 1. A diversion structure to collect water from the south fork of Juniper Creek near the upper property line at 1900 foot elevation. This would likely consist of a concrete structure in the creek. A second diversion structure would be located on the north fork, with an approximately 1,200-foot long pipeline to convey this water to the south fork intake. 2. An intake structure to filter debris out of the water and direct water into the project penstock. 3. An approximately 1,500 foot long penstock down to the lower property line at 1,400-foot elevation. The penstock would be buried for frost protection where possible. 4. A powerhouse fitted with a single turgo or pelton turbine. Single or dual jets may be used depending on the selected design flow. 5. An induction generator. 6. A power line extension to the existing MEA distribution system in the area. The project’s installed capacity is estimated at approximately 250 kW to 500 kW. The capacity factor is estimated to be between 0.50 and 0.70, with higher capacity factors for lower design flows. Annual energy generation is estimated at 1,530 to 2,190 MWh. All of these parameters depend on which project configuration is identified by the feasibility study as the best development at Juniper Creek. Extension of the project onto downstream property(ies) would increase annual energy generation to as much as approximately 6,000 MWh. No barriers to implementation are known. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 10 of 21 7/3//2012 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. Land where the project would be located is owned by Ram Valley, LLC. Extension of the project onto adjacent private property(ies) downstream would require participation agreements setting forth the terms of access and shared ownership issues. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues.  List of applicable permits  Anticipated permitting timeline  Identify and discussion of potential barriers The project is expected to require the following major permits for construction. 1. The project is believed to not be under FERC jurisdiction. A declaration of intention would be filed with FERC to confirm this regulatory determination. 2. Authorizations from the Municipality of Anchorage as needed to conform with land use and zoning regulations. 3. Fish Habitat Permit. The project reach on Juniper Creek is above listed anadromous fish habitat, and possibly above resident fish habitat as well. Fish trapping would be performed to help confirm the presence or absence of resident fish (such as Dolly Varden) in the project reach. 4. U.S. Department of Army permits for work in waters of the U.S. including wetlands. 5. Alaska Department of Natural Resources Water Rights. 6. RCA authorization. A Utility Certificate from the Regulatory Commission of Alaska may be required depending on how Ram Valley proceeds with the project. Once a decision to develop the project is made (at the conclusion of the Feasibility Study), permits are estimated to take 1.5 to 3 years to obtain. This estimate will be refined once the project configuration is determined. The longer timeframe would apply if significant resource issues are identified in the course of the feasibility study. No permitting barriers are known at this time. 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 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 11 of 21 7/3//2012 The following assessment is based on currently available information. More detailed responses would depend on the specific project configuration that is selected. Threatened or endangered species: None known. Habitat issues: None known. Wetlands and other protected areas: Most of the project footprint is uplands, some wetlands areas would likely be affected by the project. Archeological resources: None known. Land development constraints: The project would need to conform with MOA land use and zoning regulations. Telecommunications Interference: None known. Aviation considerations: None known. Visual, aesthetics impacts: None known. Other potential barriers: None known. 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 Total project costs will depend on the project configuration which has not been determined. Based on known site conditions, a cost of $2000 to $4000 per kW of installed capacity is considered appropriate at this level of study. This equates to a capital cost of $500,000 to $2,000,000 depending on the project capacity. The cost of the feasibility study is $172,700. Ram Valley, LLC requests $127,900 in grant funds and is providing $42,800 as an in-kind match and $2,000 as a cash match from its own resources for the study. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) The project concept is not sufficiently developed at this point in time to provide meaningful O&M cost estimates. No factors are currently known that would result in abnormally high or low O&M costs Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 12 of 21 7/3//2012 compared to typical costs for small to medium-sized run-of-river hydroelectric projects in Alaska. 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 Sale of power from the Juniper Creek project could take a number of forms. The most straightforward power sales contract to put in place would be to sell electricity to MEA on a wholesale basis. MEA’s power purchase rate for non-firm power (the avoided cost of fuel, purchased power and O&M) is currently approximately $0.05 to 0.07 per kWh. Sale to other railbelt utilities is also an option, although this can be contractually challenging due to the need to negotiate wheeling rates over the MEA and potentially other systems. Sale to non- utilities is also a possibility in certain instances, but it can be more difficult to set up these contractual relationships. Detailed cost-based rates are not yet available for the project at the current level of study. Economic and financial analysis is one of the tasks that will be completed as part of the feasibility study. Cost analysis completed to date indicate that the cost-based rate for the project is likely in the same range as MEA’s future avoided cost of energy (fuel + O&M), indicating the project is economically viable. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 13 of 21 7/3//2012 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Renewable Energy Source Juniper Creek Hydroelectric Project The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Capacity factor of 0.50 at 20 cfs, 0.70 at 10 cfs. (a 20 cfs project is used for this worksheet) Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other Railbelt ii. Rated capacity of generators/boilers/other Railbelt iii. Generator/boilers/other type Railbelt iv. Age of generators/boilers/other Railbelt v. Efficiency of generators/boilers/other Railbelt b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor Railbelt ii. Annual O&M cost for non-labor Railbelt 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] Railbelt ii. Fuel usage Diesel [gal] Railbelt Other Railbelt iii. Peak Load Railbelt iv. Average Load Railbelt v. Minimum Load Railbelt vi. Efficiency Railbelt vii. Future trends Railbelt 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] -- 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. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 14 of 21 7/3//2012 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] 500 kW b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 2,190,000 kWh ii. Heat [MMBtu] -- c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] -- ii. Coal [tons or MMBtu] -- iii. Wood [cords, green tons, dry tons] -- iv. Other Up to 20 cfs of water from Juniper Creek on a continuous basis. Project Cost a) Total capital cost of new system $2,000,000 b) Development cost $350,000 c) Annual O&M cost of new system $ 32,850 (based on $0.015 per kWh O&M cost) d) Annual fuel cost $0 Project Benefits a) Amount of fuel displaced for i. Electricity Approximately 32,000 mmBtu per year (32,000 MCF of natural gas) ii. Heat -- iii. Transportation -- b) Current price of displaced fuel Price of natural gas to railbelt utilities is approximately $6 to 7 per MCF. c) Other economic benefits -- d) Alaska public benefits $ 208,000 per year in avoided fuel costs (at $6.50 per MCF), plus $21,900 in MEA avoided O&M costs (valued at $0.01 per kWh). Totaling $229,900 in public benefits. Power Purchase/Sales Price a) Price for power purchase/sale MEA’s avoided cost of electricity is anticipated to be equivalent to the cost based rate for the project. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 15 of 21 7/3//2012 Project Analysis a) Basic Economic Analysis Project benefit/cost ratio $ 5.58 million in benefits / $3.67 million in costs = 1.52 (calculated using Round 6 AEA/ISER economic model) Payback (years) $ 4,350,000 total development cost / 229,900 avoided costs = 18.9 years 4.4.5 Proposed Biomass System Information Please address the following items, if know. (For Biomass Projects Only)  Not Applicable. SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following:  Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project  Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate)  Potential additional annual incentives (i.e. tax credits)  Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available)  Discuss the non-economic public benefits to Alaskans over the lifetime of the project The project would displace approximately 32,000 MCF of natural gas annually, or 1.6 million MCF (assuming that MEA can use natural gas for the full 50-year life of the Juniper Creek project). At a value of $6.50 per MCF, this is worth $208,000 annually, or $10.4 million over the 50-year life of Juniper Creek. This project will also reduce MEA’s O&M costs at its new Eklutna Power Plant. This plant will use reciprocating engines. By reducing the run-time on these engines, the Juniper Creek project will reduce the amount MEA spends on engine overhauls, oil, filters, and similar costs, as well as on the purchase of ammonia for scrubbing the plant exhaust to meet ADEC air quality criteria. The incremental value of these avoided O&M costs is estimated at $0.01 per kWh, or $21,900 annually. The combined direct financial benefits of the project are $229,900. This project would increase the efficiency of MEA’s distribution grid by providing more distributed generation. This would benefit MEA members by increasing the electrical efficiency of MEA’s grid and slightly lowering the amount of energy generation required at the Eklutna Power Plant. With an assumed increase in grid efficiency of 2%, this project would eliminate an additional 2% x 2,190,000 kWh x $0.11/kWh = $4,818 in generation costs annually. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 16 of 21 7/3//2012 A wholesale power purchase contract with MEA would likely be at their system average avoided cost (fuel plus O&M). The AEA/ISER model assumes this to be $0.11 per kWh when Juniper Creek is commissioned in 2018. This is estimated to be similar to the cost-based rate for Juniper Creek. Gross annual revenue at this power purchase rate would be $240,900. Sale of the ‘green tags’ from this project would potentially increase project revenues. Green Tags on the voluntary market have stabilized at a price of approximately $0.001 per kWh, which would result in incremental revenue of $2,190 per year assuming that all Green Tags from the project were sold. All communities connected to the railbelt grid would benefit from this project. This project would increase the amount of renewable energy available to the railbelt, decreasing dependence on fossil fuels, which in the case of natural gas in Cook Inlet is a diminishing resource. This project would also not be subject to any future carbon taxes that may be imposed on the burning of fossil fuels. Carbon taxes would increase the incremental value and public benefit of this project as compared with burning natural gas or fuel oil. 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 Ram Valley anticipates that it would become an Independent Power Producer and sell power on a wholesale basis to the local utility, MEA. O&M costs for the project would be funded by revenues from sale of electricity. The market value of the electricity easily exceeds expected O&M costs. No unusual operational issues are known at this time. Operational costs would include periodic scheduled overhauls of the turbines, generators, and ancillary equipment, maintenance of the project intake and related hydro project operations. Back up electric service would be provided by MEA. Ram Valley, LLC commits to reporting the savings and benefits associated with the Juniper Creek hydroelectric project should it be found feasible and move forward to construction. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 17 of 21 7/3//2012 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. Ram Valley, LLC has been monitoring stream flow on Juniper Creek, reviewing site topography, and related technical matters over the past three years to determine if the resource is likely to support a hydroelectric development. Our preliminary analysis indicates that the site has good flows through the winter and warrants detailed technical and engineering analysis to determine development costs and economic feasibility. Ram Valley has not received any prior grants for this project. SECTION 8– LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. Attached to this application are letters of support from South Fork Hydro, LLC and Matanuska Electric Association, Inc. Ram Valley, LLC is not aware of any opposition to this project. SECTION 9 – GRANT BUDGET Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Provide a narrative summary regarding funding sources and your financial commitment to the project. Ram Valley, LLC will provide in-kind services and labor in the form of equipment usage and professional labor, primarily provided by David Brailey, member of Ram Valley and principal of Brailey Hydrological Consultants. Ram Valley will also provide a cash match by purchasing stream gauging equipment for installation at the proposed intake site on Juniper Creek. Ram Valley, LLC already owns the property where the project would be located. 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 scalfa@aidea.org. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 18 of 21 7/3//2012 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 Grant Agreement with AEA Notice to Proceed = 0 months 1. Project Management, Scoping and Contractor Solicitation End of 2rd month $0 $0 $0 2. Detailed Energy Resource Analysis End of 14th month $7,500 $32,800 Cash and In-Kind $40,300 3. Identify land and Regulatory Issues End of 7th month $8,300 $3,600 Cash and In-Kind $11,900 4. Permitting and Environmental Analysis End of 12th month $11,800 $1,200 Cash and In-Kind $13,000 5. Market Analysis End of 12th month $9,300 $800 Cash and In-Kind $10,100 6. Assessment of Alternatives End of 13th month $14,500 $0 $14,500 7. Conceptual Design Analysis and Cost Estimate End of 13th month $30,400 $0 $30,400 8. Detailed Economic and Financial Analysis End of 14th month $11,400 $0 $11,400 9. Business and Operations Plans End of 14th month $6,200 $1,600 Cash and In-Kind $7,800 10. Draft Final Report End of 15th month $24,900 $2,400 Cash and In-Kind $27,300 11. Final Report End of 17th month $3,600 $2,400 Cash and In-Kind $6,000 TOTALS $127,900 $44,800 $172,700 Budget Categories: Direct Labor & Benefits $0 $42,500 In-kind $42,500 Travel & Per Diem $0 $300 In-kind $300 Equipment $0 $2,000 Cash $2,000 Materials & Supplies $0 $0 $0 Contractual Services $127,900 $0 $127,900 Construction Services $0 $0 $ Other $0 $0 $ TOTALS $127,900 $44,800 $172,700 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 19 of 21 7/3//2012 Project Milestones that should be addressed in Budget Proposal Reconnaissance Feasibility Design and Permitting Construction 1. Project scoping and contractor solicitation. 2. Resource identification and analysis 3. Land use, permitting, and environmental analysis 4. Preliminary design analysis and cost 5. Cost of energy and market analysis 6. Simple economic analysis 7. Final report and recommendations 1. Project scoping and contractor solicitation. 2. Detailed energy resource analysis 3. Identification of land and regulatory issues, 4. Permitting and environmental analysis 5. Detailed analysis of existing and future energy costs and markets 6. Assessment of alternatives 7. Conceptual design analysis and cost estimate 8. Detailed economic and financial analysis 9, Conceptual business and operations plans 10. Final report and recommendations 1. Project scoping and contractor solicitation for planning and design 2. Permit applications (as needed) 3. Final environmental assessment and mitigation plans (as needed) 4. Resolution of land use, right of way issues 5. Permit approvals 6. Final system design 7. Engineers cost estimate 8. Updated economic and financial analysis 9. Negotiated power sales agreements with approved rates 10. Final business and operational plan 1. Confirmation that all design and feasibility requirements are complete. 2. Completion of bid documents 3. Contractor/vendor selection and award 4. Construction Phases – Each project will have unique construction phases, limitations, and schedule constraints which should be identified by the grantee 5. Integration and testing 6. Decommissioning old systems 7. Final Acceptance, Commissioning and Start-up 8. Operations Reporting               ATTACHMENT A    PROJECT TEAM QUALIFICATIONS                ATTACHMENT B    LETTERS OF SUPPORT                                  ATTACHMENT C    ELECTRONIC VERSION OF ENTIRE APPLICATION                          ATTACHMENT D    GOVERNING BODY RESOLUTION                      ATTACHMENT E    ADDITIONAL MAPS AND PROJECT INFORMATION              JUNIPER CREEK FLOW01020304050600 30 60 90 120 150 180 210 240 270 300 330 360DAY OF CALENDAR YEARFLOW (CFS)Average Daily Flow Data, 2008 - 2012(Basin area above gauging station: 8.1 sq. mi.)