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HomeMy WebLinkAboutCity of Elim ApplicationRenewable Energy Fund Round 6 Grant Application 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.akenercivauthorjtV.oLgIRE 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 scalfaO-aidea.orQ. • 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 34 7/3/2011 Renewable Energy Fund Round 6 Grant Application SECTION 1 — APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Elim SOL- ENERGY AUTHORITY Type of Entity. Tribal Government Entity Fiscal Year End July 1 Tax io # 92-0058095 Mailing Address Telephone I Fax Tax status non-profit Physlcal Address Email 1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER Name Title Crystal lvanotf City Clerk Mailing Address PO Box 39009, Elim, Alaska 99739 Telephone Fax — Email 9074190vWl 907.690.3811 _ _ cit fellm ahoo.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or X A local government, with state of Alaska A.S. 29.08.050(b) YES YES YES YES 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 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 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 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 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 34 7/3//2012 Renewable Energy Fund Round 6 � 4111r, -: ��� Grant Application OW-1i ENEPrGYALTMORRY 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) Elim Geothermal Resource Assessment / Feasibility 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. Elim (pop. 337) is located on the northwest shore of Norton Sound on the Seward Peninsula, 96 miles east of Nome. 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 P The coordinates will be displayed in the Google search window above the map in a format as follows: 61.195676.-149.898663_ tf you would like assistance obtaining this information please contact AEA at 907-771-3031. The known geothermal springs, variably called Elim Hot Springs or Kwiniuk Hot Springs, located approximately 8 miles directly inland from the community (Lat: 64.7 Long: 162.467), Clear Creek Hot Springs which consists of three separate springs located within a %a mile radius approximately 15 miles northwest from the community (Lat: 64.85 Long: 162.225), and other geothermal springs on Elim land will be prime targets for this project. 2.2.2 Community benefiting — Name(s) of the community or communities that will be the beneficiaries of the project. Elim Alaska 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Hydro, including run of river X Geothermal, including Heat Pumps Heat Recovery from existing sources Solar Other (Describe) Biomass or Biofuels Transmission of Renewable Energy Small Natural Gas Hydrokinetic Storage of Renewable 1 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) X Reconnaissance X Feasibility Conceptual Desil Design and Permitting Construction and Commissioning AEA13-006 Grant Application Page 3 of 34 7/3//2012 Renewable Energy Fund Round 6 ` �-� Grant Application E)e4u*YA rHCMTY 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The AEA Energy Pathway 2010 indicates hot springs located on Elim Native Corporation land surrounding Elim are potential energy sources, but only comprehensive analysis can determine how, and under what conditions, geothermal energy might be viable. The City of Elim, the Native Village of Elim, Elim Native Corporation, and the University of Alaska Fairbanks propose a Resource Assessment (Reconnaissance) / Feasibility Analysis of Elim geothermal sites. It will use low cost airborne and ground -based reconnaissance and mapping techniques to develop a conceptual model. Feasibility, cost analysis, and design of viable solutions will follow. 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.) The Alaska Energy Pathway identifies hydroelectric, woody biomass, wind, and geothermal as potentially viable options to help bring down and stabilize the cost of energy in Elim. A study of the feasibility of hydroelectric power from Petersen Creek is complete. A state funded wind resource assessment and feasibility analysis is underway. A woody biomass resource survey is in the planning stages. This project provides the last pieces of the puzzle, enabling Elim to decide the best way to move forward. Geothermal power could save Elim 3.6 million gallons of fuel costing more than $16 million over 20 years. If Elim grows, or if the cost of fuel increases more rapidly than expected, it could save considerably more fuel and money. This phase of the project will answer questions about the available geothermal resource to determine whether, and in what manner, this can be done cost effectively. Community leaders envision geothermal energy as being part of Elim's future. It is Elim's top economic development priority today. The presence of hot springs is one of the reasons Elim chose to opt -out of the Alaska Native Claims Settlement Act in the 1970s. Instead they took the surface and sub -surface rights to land surrounding the village. This land includes the hot springs, and permission from the federal government to develop these springs came as part of the deal. In order for the project to be cost-effective, it will need to supply both electricity and space heating to the community. After the resource survey phase of this project is complete, this project will investigate the feasibility of geothermal development under a number of scenarios that could do this including: 1) Piping produced geothermal fluid to the community for both heat and power, 2) Generating power at the resource and building a transmission line to Elim, and 3) Developing the resource for other beneficial purposes. The first two options would use a binary geothermal power plant, such as the Pratt and Whitney PureCycle modules installed at Chena Hot Springs, located either in the community of Elim, or at the geothermal resource. If option 1 is not cost effective due to the distance of the resource from the community, option 2 will provide space heating using electrothermal masonry heaters AEA13-006 Grant Application Page 4 of 34 7/3//2012 Renewable Energy Fund Grant Applicatio in individual residences and buildings. Round 6 n 4MM:---, ENERGY AUTHORrrY In addition to reducing energy costs and displacing liquid petroleum, geothermal development for Elim would have the following added benefits: • Reliability — Pratt and Whitney and Ormat binary power plants reliably supply baseload power. They are guaranteed to be 95% reliable, and have been shown to be 99% reliable in the harsh climate of Chena Hot Springs. • Low environmental impact — Compared to other technologies per MW generated, geothermal produces almost no harmful emissions, has a small surface footprint, and has a low visual impact. The project will offset CO2 and other greenhouse gas emissions from the existing fossil fuel base plants. • Local development and enhanced community sustainability — Elim identifies geothermal development as a top priority in their Local Economic Development Plan. Generation of electric power is only one option. If power available from the resource exceeds current electricity demand of the area other projects will be feasible. This project will examine the entire energy picture, including opportunities for business and industry that benefit the community. Other priorities include a boat harbor, sawmill, aquaculture startup, an extension of the water & sewer system, additional housing, and community buildings. Geothermal would facilitate the development of all of these. 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. A total of $527,908 is requested in grant funds for this project from the AEA. In addition to the listed in -kind match from the City of Elim, and Elim IRA Council, all equipment needed for the field work is owned by the University of Alaska Fairbanks and can be used for this project at no cost. The City of Elim will provide lodging for UAF researchers, and for out of town participants in Stakeholder Advisory Group (SAG) meetings for a total of up to 40 nights. Specifically, the city will provide an apartment, including a full kitchen and meeting area, with a maximum value of $7,560. The City will also make telephone and wireless Internet service available to project participants at the City building. The Elim IRA Council will provide a driver and an all terrain vehicle capable of carrying a total of the driver and one passenger to support UAF field activities valued at a maximum of $10,000 ($40 / how, 250 hour maximum). The presence of a local who is familiar with the surrounding terrain and sites to be surveyed, and is capable of dealing with aggressive large wildlife if and when encountered, will significantly reduce project risk. In addition, all participants have resolved to participate in Stakeholder Advisory Group "SAG" meetings, provide additional information about the location of suspected geothermal sites, and when p2ssible provide additional support and assistance with field research and site access. 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your projects total costs and benefits below. Grant Costs -- (Summary of funds requested AEA13-006 Grant Application Page 5 434 713112012 Renewable Energy Fund Round 6 Grant A lication 2.7.1 Grant Funds Requested in this application. 2.7.2 Cash match to be provided 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) Project Costs & Benefits law Q,". t ENERGY AUTHORrrY $ 527,908 $ $ 527,908 (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) 2.7.7 Estimated Direct Financial Benefit (Savings) 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.) $10 —16 Million $16 Million $ Difficult to put a dollar figure on it but very significant. NOTE: The purpose of this project is to obtain information necessary to properly determine costs and benefits under differing development scenarios. 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. TT 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 AFC► or another government entity, state that in this section. This project is a joint effort between all three tribal entities in Elim; the City, the IRA Council, and the Native Corporation, and the University of Alaska. The City of Elim is the lead applicant. The city will manage and track local activities including coordinating, hosting, and reporting on Stakeholder Advisory Group (SAG) meetings, scheduling and providing lodging for University of Alaska researchers and SAG attendees donated in -kind by the City of Elim, and scheduling field support labor and equipment donated in -kind by the Elim IRA. The Elim IRA will track the use of their in -kind contribution and report quarterly to the City. UAF will also report to the City quarterly. The progress of all entities will be reported quarterly to the AEA. Mayor Edwin Kotongan will maintain signature authority while delegating project management and oversight to City Clerk Crystal Ivanoff, and day to day fiscal responsibility to bookkeeper Esther Aukongak. Aukongak has a certificate of completion of quickbooks training, and has substantial hands-on experience with the software. She handles electricity billings for AVEC, billings for City lodging, and billings for heavy equipment rentals from the City. The City has administered federal and state grants, generally of a cost -reimbursement type, that include provisions for advances and billings on a reimbursable system. Ester will implement fund-accountingconcepts and set u the geothermal project as an ind endent fiscal and AEA13-006 Grant Application Page 6 of 34 7/3//2012 Renewable Energy Fund Round S or_ Grant Application �E_-,pdQIGYAlTHOMY�` accounting entity with a self -balancing set of accounts, recording revenues, expenses, assets, liabilities and fund balances which are segregated for the purpose of carrying on activities or attaining objectives in accordance with the grant. All cash disbursements for the project will be made by check, generated by the bookkeeper, based on requests from other staff members and approval by the Mayor. Crystal Ivanoffwill be delegated project management and oversight. Ivanoffworks regular hours, and so will be available to deal with matters as they arise. Her duties will include managing all aspects of Stakeholder Advisory Group (SAG) meetings, including coordinating schedules, sending invitations, booking travel and accommodations, securing meeting space, and taking and distributing meeting minutes. Ivanoff will make sure project participants make it to and from the airport on time, schedule lodging for them at the City, coordinate a driver / ATV with the IRA for field research, and provide other project support as needed. Other projects the City has either completed, or is working on today include: 2009 USDA $75,000 ANTHC Preliminary Engineering / Environmental Report- evaluate existing master plan & sanitation facilities, develop a new sanitation improvement plan, complete a water resource investigation. 2009 Brownsfield Assessment City Shop 2008 USDA $39,751 2008 DCCED DCRA Community Playground, $33,104 2008 Brownsfield Assessment Old AVEC Site 2007 DCCED $25,000 2006 DCCED/ANTHC $200,000 Water & Sewer Sanitary Master Plan / Solid Waste Landfill 1998 DCCED - $147,660 - Municipal landfill project. Subcontracts will be issued to the University of Alaska Fairbanks for research on this project. The University of Alaska components will be managed by Alaska Center for Energy and Power Director, Gwen Holdmann. In addition to managing the overall UAF scope and serving as the main point of contact for the City of Elim, Ms. Holdmann will lead Task 3 and 4. Task 1 will be led by Anupma Prakash, Professor and Chair Remote Sensing Group at the Geophysical Institute (GI). Task 2 will be led by Rainer Newberry, Professor of Economic Geology, Department of Geology and Geophysics, University of Alaska Fairbanks. Other UAF researchers include Dr. Christian Hasselwimmer (Task 1 and 3); Markus Mager (Task 4); Dr. Billy Muhando (Task 4); and Dr. Jessie Cherry (Task 1). 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 identiK the beginning and ending of all phases of your proposed project. This project will be completed within 12 months. At that point, Elim's tribal entities, in consultation with other Stakeholder Advisory Group "SAG" members, will make a go/no-go decision based on the available body of information, on whether to pursue funding under Round 7 of the Renewable Energy Fund Program to conduct a more costly exploration drilling program. The project schedule outlined below is based on an assumed August 1, 2013 start date and minimal allowed pre -award expenditures dating to July 1, 2013. This would allow rapid mobilization of team resources, and would permit the field work components (Task 2) to be completed during summer 2013, rather than delayin&the project unti12014. AEA13-006 Grant Application Page 7 of 34 7/31/2012 Renewable Energy Fund Round 6 Grant Application e0NE7 ENERGY AUTHORITY An overall project timeline includes: - August, 2013: Get contract in place; hold initial SAG meeting (in -person) - August, 2013-May, 2014: Task 1-4 UAF Scope of Work (see section 3.3 for additional detail) - December, 2013 SAG meeting to report on results from Task 2 (telephonic) - March, 2014 SAG meeting to discuss upcoming Task 1 activities (telephonic) - June, 2014: Draft UAF conclusions presented to SAG for review - August, 2014: Final project report submitted to AEA This project has been divided into 4 discreet tasks, with several associated sub -tasks and schedules associated with each one. Details of Task and sub -task timelines are included in the following section. The tasks will be led by researchers from the University of Alaska Fairbanks, under the direction of the City of Elim and with the input from members of the Stakeholder Advisory Group. Project milestones. Task 1—Thermal Infrared Mapping and Analysis around Community of Elim. (Task lead - Anupma Prakash) As a first step in any geothermal development project, a systematic survey and analysis on the extent, nature, magnitude of the thermal anomaly, and a quantitative estimate of the heat flux beyond the natural radiative heat of the Earth and sun is required. This is particularly useful in determining the extent to which the resource can be exploited for sustainable power generation or direct use. This task builds on the work conducted by the University of Alaska Fairbanks (UAF) at Pilgrim Hot Springs which pioneered the use of satellite images and airborne Forward Looking Infrared Radiometry (FLIR) as a low-cost method of estimating the developable extent of moderately sized geothermal resources in remote areas. This task will include analyzing available optical, thermal and microwave images from the Landsat, ASTER, WorldView-2 and TerraSAR-X satellite sensors to find potential areas of geothermal interest. This regional analysis will be followed by one FLIR survey flown in April 2014. The area covered will include a roughly a 20 square mile area incorporating both known and suspected geothermal anomalies as identified by local residents (see Figure 1). The task is organized into the following sub -tasks, with estimated completion dates: Task L I (September 2013): Acquire all available images from the Landsat, ASTER, WorldView-2 and TerraSAR-X satellite sensors to carry out regional mapping of landcover with an emphasis on geothermal features and seasonal changes in their surface expressions. Task 1.2 (December 2014): Satellite data processing and preliminary results reported to the Stakeholder Advisory Committee SAG committee. Task 1.3 (April 2014): FLIR airborne survey over the entire study area organized by UAF. Concurrent ground -based reconnaissance to support flight is conducted under Task 3. Task 1.4 (June 2014): Data processing completed and results incorporated into conceptual model of the resource. Submitted to SAG for review; recommendation on go/no-go decision point presented to SAG at June meeting. Task 1.5(July 2014): Final report completed. Submit report to AEA. AEA13-006 Grant Application Page 8 of 34 713/12012 Renewable Energy Fund Round 6 •W, w s ■. Grans Appimauun . 4MIL JENEKUYAUIHUK1IY y ram-, _ j ThrwLa.a It �•` •' � ysq' �, S S� _I' � r��isF �r�4 I j3'.��1� •-Ms � ,• ei , 'e�s•+rio N �, r i' : J;' � �-; -� �"i� Jf� f- �i. J .�-�..�t;:��i �.-�. • � �:�.. - S� t8� Y' fl6• .Y �-I Y ; n i , �� •P ^�Y � •'dam ,3 .- N'a3'•7! r7 . Otis � :iy; r .. 1.. �.r ,^ � - ��Yr-'vi'•' � � --': ; . t� -1-'•' 1 .r N'Ci�ls_ '�` KrI^ r1 i ` � ..- # v •.. -k►�- f..~ J_ - `'. / , .. '4.1 _4 Figure 1. Location of potential geothermal anomalies mapped by local residents, in addition to the known geothermal resource at Elim Hot Springs. Figure 2.Color Infrared (CIR) image (Roll 8, Line 73, frame 059) from late 70s showing Kwiniuk Hot Springs, which are located within the open circle area. Corresponding USGS Solomon C-2 quadrangle topographic map shows a trail along the Kwiniuk River. Task 2 —Ground Based Reconnaissance.(Task lead - Rainer Newberry) Task 2 is planned both to support the Task 1 FLIR campaign, and to collect additional samples for water chemistry from both known and not previously sampled springs and seeps (identified by local residents), to collect rock samples for major and trace element analyses, and to create several detailed scale geologic maps to better define the geologic constraints on the system. We will need helicopter support, as the locations of -interest are not ground -accessible from Elim during the summer months. Task 2.1 (August 2013): Collect 8-12 water samples (including duplicates and standards) for analysis from seeps and springs within a 20 mile radius of the community. These will be submitted for major and minor element chemical analysis and analyzed via standard geothernnometers to determine the estimated reservoir tem ratures other constraining AEA13-006 Grant Application Page 9 of 34 713112012 Renewable Energy Fund Round 6 Vlc� Grant Ap Iicat ion rMV- ENERGY AUTHORITY characteristics. Chemical analyses of waters previously sampled from Elim and Clear Creek hot springs (Miller, 1973) are both internally inconsistent and display enormous differences not consistent with their similar geologic settings. A better understanding of the water compositions and variations is critical to understanding the hydrothermal dynamics. Task 2.2 (August 2013): Geologic mapping and rock sampling in the area. The only geologic map available for the area (Till et al., 1986) is of regional (1:250,000) scale. Such mapping (Fig. 3) indicates that the most important hot springs are located in the Darby pluton (Kd, Fig. 3) an igneous body known to be locally enriched in the radioactive elements K, U, and Th. Most of the hot springs are located apparently on or near major scale, steeply dipping faults. The setting is thus similar to that at Chena Hot Springs, Interior Alaska. To determine if CHS represents a viable model for these hot springs (Task 3) we plan to collect and compositionally characterize igneous rocks from the area to verify and to determine if the hot springs are located on faults subsidiary to the major scale ones mapped in their vicinity. Doing so will permit development of a viable conceptual model of the system (Task 3). Task 2.3 (April 2014): Draft report submitted to SAG, in conjunction with Task 3 activities. Recommendation on go/no-go decision point presented to SAG at April meeting. Task 2,4 (May 2014): Submit UAF report on the results of this task group to AEA. f ' Cleor Crk ■ F. It 6. Yd ■' fyi� ' FLS V r ,} DV&m j at) i CK P" r - �" f ■ �' � 5 rr111es Figure 3. Known geology in the vicinity of Elim-area hot springs, modified from Till et al., 1986). The Darby pluton (Kd, pink) hosts the most important known hot springs (yellow ovals). Most of the hot springs occur on or near inferred regional -scale faults (red dotted lines). Task 3 —Conceptual Model of the System(led by University of Alaska Fairbanks) The information from Tasks 1 and 2 will be combined with existing information about the resource to develop a conceptual model of the system and guide subsequent efforts under Task 4. We plan to combine available information about the resource in a GIS environment to help inform the decision making process. To facilitate this effort, we will take care to ensure results from Task 1 and 2 activities are compiled in a geospatially consistent manner so they can be _easily inte ated in a GIS environment using an off the shelf commercial GIS software package AEA13-006 Grant Application Page 10 of 34 7/3/12012 Renewable Energy Fund Round 6 L Grant Application ENERGY AUTHORITY such as ArcGIS. Task 3.1 (November 2013): Collect and compile existing body of knowledge related to the Elim geothermal system and its geologic context to incorporate into a conceptual model of the system. Task 3.2 (January 2014): Build GIS framework and incorporate satellite data, processed image products such as temperature maps, vegetation stress maps, snow melt maps, as well as information from other sources. Task 3.3 (April 2014): Complete draft conceptual model of the geothermal system, to be presented to the SAG for review and comment. Remote sensing derivatives Primary input data Anomalous mRemote sensing snow melt ^� Land cover/ Topography surface features Geothermal waters Heated ground =� Vegetation growth anomaly Vegetation species anomaly Surface minerals Geology Geophysics • Geochemistry Fled data Integrated GIS Flux model Basin model Figure 4.We intend to incorporate data from both existing sources and results from Task 1 and 2 activities within a GIS platform to develop a conceptual model of the resource and inform decisions related to any potential future development. Task 4 — Preliminary Design Analysis and Cost (Task lead - Gwen Holdmann) A preliminary conceptual design for developing the resource along with estimated costs will be analyzed. This preliminary design will include wells, gathering systems, necessary roads and infrastructure, the plant itself, and transmission lines. Included in this task are multiple scenarios for developing the resource, taking into account conservative values for the maximum developable extent of the resource, based on the conceptual model completed as part of Task 3. Specifically, we will consider challenges and potential barriers to developing the site, such as stand-alone operation, and production and injection requirements, as well as design of a transmission system. The information from each of the sub -tasks will be incorporated into a single document that will help inform the go/no-go decision point that is part of Task 1. Task 4.1 (April 2014): Cost of energy to market design. Because the geothermal resource is located close to but outside of the community, a transmission line will need to be installed. There are a number of issues that impact the cost of this system but ultimately the cost of the transmission system will almost certainly drive the economic viability of development. Task 4.2 (April 2014): Conceptual geothermal field and power plant design. Based on the conceptual resource model completed as part of Task 3, common scenarios for developing the site will be analyzed to inform the economic feasibility study (Task 4.4). Specifically, we plan to complete generic modeling of various field production strategies, including their energy requirements. This is necessary to understand the potential net power that could be AEA13-006 Grant Application Page 11 of 34 7/3//2012 Renewable Energy Fund Round 6 AlMASWA -' Grant Application=,ENU*YAUTHOMY delivered to the community. Task 4.3 (April2014): Land Use, Permitting, and Environmental Analysis. This sub -task will include identification and analysis of potentially competing land use and ownership, resource issues, permitting, and environmental needs of the geothermal plant through construction that will be required continuing on with further exploration and/or development. Task 4.4: (April 2014) Simple Economic Feasibility. Based on the outcome of Tasks 2-4, we will conduct an economic feasibility analysis for developing the Elim resource both for power generation and for direct use. This will include a preliminary analysis of the cost of a transmission line, which would be a major factor in the economic viability of development. 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. Mayor Edwin Kotongan will maintain signature authority while delegating project management and oversight to City Clerk Crystal Ivanoff, and day to day fiscal responsibility to bookkeeper Esther Aukongak. Mayor Kotongan is currently serving his second 3 year term and will be up for re-election in October 2012. The Mayor also sits on the Elim Native Corporation Board of Directors. As a lifetime resident of Elim, he has been involved in many types of projects over the years. Esther Aukongak has worked as Elim's bookkeeper since September 2008. Prior to that, from February 2005 to August 2008, she was the bookkeeper/land planner for Golovin Native Corporation. From September 2000 to January 2005 she was the Utility Clerk for the City of Golovin. Aukongak has provided a certificate of completion for "CIOS F105" Quickbooks dated 12/15/07. She uses the software regularly and is proficient. In addition to her role as City Clerk, Ester handles electricity billings for AVEC, billings for City lodging, and billings for heavy equipment rentals from the City. Crystal Ivanoff will be delegated project management and oversight. Ivanoff has been the City Clerk in Elim since January 2010. Prior to that, from January 2006 to October 2008, she was a substitute aide for the Bering Strait School District in Elim. Before that worked as the administrative office clerk for the City of Elim, Exercise assistant at the Elim IRA, and Kids Activities Program Assistant at the Elim IRA. Ivanoff was awarded her GED on 5/17/2006. Her duties will include managing all aspects of Stakeholder Advisory Group (SAG) meetings, including coordinating schedules, sending invitations, booking travel and accommodations, securing meeting space, and taking and distributing meeting minutes. Ivanoff will make sure project participants make it to and from the airport on time, schedule lodging for them at the City, coordinate a driver / ATV with the IRA for field research, and provide other project support as needed. Kawerak's Energy Specialist, Walter Rose will provide research and technical support to the AEA13-006 Grant Application Page 12 of 34 713//2012 Renewable Energy Fund Round 6 Grant Application �4OW- ENERGYAUTHOMY City of Elim and Elim Tribal Government for this project. Mr. Rose was awarded a Master in Business Administration and a Master of Science in Information Systems Management at the Peter F Drucker Graduate School of Management in Claremont California in 1994. He has been working as the Energy Specialist at Kawerak for more than three years. Mr Rose's priorwork experience includes time in the recycling industry, more than a decade as a computer programmer, and more than 5 years experience as the chief purchasing agent for a Japanese machine tool manufacturer. While he is not directly involved in the management of this project, it is worth noting that Paul Ivanoff will participate in SWG meetings and will be involved in decisions about the future direction of this project. Mr Ivanoff is Chairman of the Board of Kawerak Inc., Chairman of the Bering Straits Development Council, President of the Elim Native Corporation, and President of the Elim IRA Council. As evidenced by the attached letters, he is in full support of this project. Resources available at the city include office space, secure storage, telephone and wireless Internet service, and lodging and accommodations. Lodging at the City building include an apartment with a full kitchen, separate bathing area, and a common meeting space. The apartment is suitable for use by UAF researchers while in Elim, and is being offered as an in - kind contribution by the city for the course of the project (limit 40 nights stay). The City of Elim also owns and maintains heavy equipment which is available for rent. Details on the types of equipment and rental rates are not included in this proposal because we do not anticipate any of it will be needed for the project. The Elim IRA Council has committed to an in -kind contribution in the form of a driver and all terrain vehicle to this project. Qualifications are that the driver be in good standing with the law, healthy, sober, and have a solid track record of safe, successful, hunting, fishing, and exploring in the area to be surveyed. This section only touches on local resources that will be directly involved in the project. Indirectly, virtually the entire community will be involved through the Stakeholder Advisory Group. It is beyond the scope of this section to provide background information and resumes' for all the village leaders involved. Ultimately, however, the skills and knowledge of the entire Village of Elim, and the resources at their disposal, are potentially available to support this project. The University of Alaska components will be managed by Alaska Center for Energy and Power Director, Gwen Holdmann. Ms. Holdmann is currently the principle investigator for the DOE and AEA funded Pilgrim Hot Springs Geothermal Resource Assessment, and previously served as project manager and engineer for the Chena Hot Springs geothermal projects. In addition to managing the overall UAF scope and serving as the main point of contact for the City of Elim, Ms. Holdmann will lead Task 3 and 4. Task 1 will be led by Anupma Prakash, Professor and Chair Remote Sensing Group at the Geophysical Institute (GI). Dr. Prakash has been involved with the remote sensing assessment of the Chena geothermal project and has been the Co -PI for the DOE funded Pilgrim Hot Springs project where she lead the remote sensing based geothermal exploration task. Task 2 will be led by Rainer Newberry, Professor of Economic Geology, Department of Geology and Geophysics, University of Alaska Fairbanks. Dr. Newberry has experience with assessing other interior Alaska geothermal systems and has worked previously on the Seward Peninsula. Other UAF researchers include Dr. Christian AEA13-006 Grant Application Page 13 of 34 7/3//2012 Renewable Energy Fund Round 6 ��� eh�til' Grant Application _ ENERGYAUTHORfTY Hasselwimmer (Task 1 and 3); Markus Mager (Task 4); Dr. Billy Muhando (Task 4); and Dr Jessie Cherry (Task 1). Resumes for key University of Alaska participants are attached. The University of Alaska Fairbanks also has extensive equipment and lab facilities that will be made available to the project at no additional cost. The Geophysical Institute has recently purchased new airborne instrumentation including: visible to near -infrared high resolution multispectral camera (TetraCam), visible to near -infrared hyperspectral imager (Resonon Pika), and an innovative miniaturised imaging radar (ImSAR-A) that complement existing airborne sensors including thermal imaging cameras, optical cameras and GPSANS units. The group is also well equipped with field data collection instruments for validation of remote sensing data. These include an ASD Field Spec Pro field spectrometers operating in 0.4 to 2.5 µm; FLIR S40 handheld camera; Trimble survey grade GPS units; Hobo thermistor units and temperature loggers; and camping and survival gear. GI has excellent access to computer hardware resources and maintains academic licenses for a diverse range of software for photogrammetry, remote sensing, GIS and modeling. GI also has a license for 20 AltiMap and EnsoMosaic software packages that are used to automate the registration and mosaicking of airborne imagery. 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Please provide an altemative contact person and their contact information. Effective communications plays a vital role in the success of any project. The City of Elim, as the lead applicant, will help insure that happens. In order to integrate this project with the overall planning process in the village, and to make sure key stakeholders stay informed and can provide feedback, the City will convene periodic Stakeholder Advisory Group (SAG) meetings in Elim. The SAG will provide leadership, direction, and oversight for the geothermal project from day one. The SAG will help identify opportunities for synergy and coordination with other community projects including wind energy, woody biomass, road construction, sanitation, waste management, and other infrastructure projects. Funding agencies want projects that benefit the entire community. SAG meetings are intended to help make sure this happens. The Alaska Energy Authority (AEA), as the funding agency for this stage of the project, will be invited to participate. Norton Sound Economic Development Corporation (NSEDC) which is making $1 million available for the construction of "shovel ready" projects that benefit the entire community might assist with future funding; they will be invited. The SAG will also include the Alaska Village Electric Cooperative (AVEC), which provides electricity in the village and recently received funding for a wind resource survey in Elim from AEA, and Kawerak Inc., the regional Native non-profit, which provides energy research and technical support to Elim and other Native Villages in the Bering Strait Region. SAG meetings will be held in Elim at the beginning and end of the project. At least two teleconferenced meetings will be held at key decision points as outlined in section 3.2 The SAG will be chaired by a representative from the City of Elim. The City, IRA Council, and Native Corporation have committed to participating in SAG meetings; each will make an effort to have a quorum present at SAG meetings so decisions can be made on the spot. AEA13-006 Grant Application Page 14 of 34 7/31/2012 Renewable Energy Fund Round S A 4011ED Grant Application if4W ENERGY AUTHORITY The City of Elim will organize SAG meetings, arrange for travel, provide overnight lodging for out of town participants, take minutes, and distribute meeting summaries. Additionally, the City of Elim will submit required quarterly reports to AEA, and the final report within two months after the conclusion of the project. To ensure timely submission, any materials provided by other project partners will be due to the City of Elim 2 weeks before each reporting deadline. 3.5 Project Risk Discuss potential problems and how you would address them. This project involves standard assessment and exploration techniques minimizing any perceived risk. Project delays may occur related to weather conditions during field activities including the aerial FUR survey, and the drilling program. Scheduling field activities during the summer months will mitigate most expected problems related to field work. Costs associated with the project are well understood and an overrun is highly unlikely. It can be hazardous for people unfamiliar with the terrain to venture into the field unescorted. The Elim IRA council will provide an individual who is familiar with the countryside and competent in dealing with large wildlife to accompany field researchers upon request. 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 sufl5cient 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. Information about Elim's geothermal resources is extremely limited, and the reports that are available are not in agreement. Discrepancies between the reports are probably caused by the presence of at least three springs within a half mile radius of each other near Clear Creek; results will vary depending on which spring is sampled. A high school survey done a couple of years ago determined the hottest spring was 174 degrees, the middle spring (half way up the hill) was 156 degrees, and the spring dumping directly into Clear Creek was 130-150 degrees fahrenheit. This survey was taken during May. The rate of flow was not measured, but reportedly a large amount of water flows from each of these three springs. A recent survey of Granite Hot Springs, on the Seward Peninsula, indicates a developable potential of up to 1 MW. Based on this, we feel it is hi 1 likel that Elim Hot S rin s, located T lAEA13-006 Grant Application Page 15 of 34 713112012 Renewable Energy Fund Round 6 A I A.M-A Grant Application in a similar geologic setting, will be capable of supporting at least one 280 kW Organic Rankine Cycle module, similar to those installed at Chena Hot Springs. It is also possible that Elim's resource will be capable of supporting additional units. If this turns out to be the case, it could open up economic development opportunities for Elim in the future. Three alternative energy resources; wind, woody biomass, and geothermal, are potentially available to Elim according to the AEA Energy Pathway. An AEA funded Alaska Village Electric Cooperative (AVEC) project is currently underway in Elim to study the wind resource. The City of Elim will begin operating a wood fired `Garr in a Box' hydronic heating system in conjunction with the local washeteria this winter. The proposed geothermal survey / feasibility study is complimentary to wind and wood. It will enable Elim to more fully understand the energy options available before moving ahead with future energy development projects. Geothermal is the preferred solution if it turns out to be viable. Wind is an intermittent resource which requires complex controls and equipment to provide more than a fraction of a community's power. Wood, which is abundant surrounding Elim, might be a good candidate to provide space heating in the absence of geothermal. Geothermal is superior to these other resources because it can reliably supply baseload power 24 hours a day, 365 days a year. Advances in binary technology enable power production from much lower temperature resources than in the past. Binary technology has been proven effective at Chena Hot Springs in Alaska, and at other sites around the world. This means that even if only a moderate temperature resource is located near Elim, it still might be used to generate power. Depending on the size of the resource, geothermal might also be used for space heating. We will investigate multiple options for space heating. The first option is to deliver geothermal fluid in insulated piping, and produce electricity and heat from this in the village. A second would install geothermal capacity at the location of the resource, and transmit power using transmission lines; this is more likely viable for a distant resource. In the case of a more distant resource, we need to conceive of a way to offset both electricity and heating in order for the project to be economical. Baseload power might be used to provide electricity, with electric heating and thermal storage during off-peak hours, like the Steffes units (masonary heaters/storage) being used at Kong and Kwig. Down the road, geothermal power might be used to charge electric vehicles in Elim as well. 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. Alaska Village Electric Cooperative (AVEC) supplies electricity in Elim. Combined capacity = 1,105 kW Peak Demand = 269 kW in 2002 Average Demand = 145 kW Efficiency = 13.67 kWh/gallon in 2009 Two (2) Detroit Diesel (236 kW, 7 years old) One (1) Detroit Diesel (363 kW, 7 years old, 2008 overhaul) AEA13-0o6 Grant Application Page 16 of 34 7/3//2012 Renewable Energy Fund Round 6 One (1) Grant Application MTU Generator (506 kW, 7 years old) FEEN k =_10T, Peak demand has remained relatively constant over the past five years with a maximum one - minute average peak of 269 kW occurring in 2002. NOTE: Please find a letter of support for this project from AVEC attached to this application. 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. Elim currently relies entirely on diesel fuel for electricity generation. In 2009, 82,189 gallons of diesel fuel was used to generate 1,123,447 kWh of electricity. A geothermal power plant might decrease the amount of diesel fuel used for power generation by 90%, resulting in $285,789 annual savings based on the 2009 cost of energy and Energy Pathway projections. Additionally generators would need fewer overhauls. Operations and maintenance costs would go down as Well. The value of future savings depends on the cost of diesel fuel, which is difficult to predict precisely, but generally expected to rise. Geothermal energy is valuable as a hedge against world energy market volatility which might otherwise threaten Elim's local economy. During the same period 100,000 gallons of fuel oil costing more than $550,000 was used to provide 75% of the community's space heating; the remaining 25% came from locally derived wood. Information developed during this survey will help determine how much, if any of this, can be cost effectively displaced by geothermal power. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The Alaska Power Cost Equalization program subsidizes retail customers up to 500 kWh / month, and provides a subsidy to community buildings based on village population. Due to the way PCE is structured, retail customers using under 500 kWh would be unlikely to see a reduction in rates; the state of Alaska, however, would benefit in the form of a reduced subsidy. Electricity consumers in the community that are not eligible for PCE assistance, including businesses and the school, would benefit from lower electricity rates. At $0.50 / kWh in 2008, the cost of electricity accounts for a large portion of the cost of doing business in Elim. Lower and more stabilized electricity rates might increase the competitiveness existing local businesses, put downward pressure on prices, and might possibly attract businesses from the outside. According to the 2010 Alaska Energy Statistics, published by the Institute of Social and Economic Research (ISER), there are currently 138 customers with a residential rate (before PCE) of $.50/kWh in 2008. The number of customers and electric load has remained relatively constant. The electricity consumption (kWh sold) in Elim in 2009 was 1,123,447 kWh. The load is highest during the winter months, with the bulk of electricity consumed by residences and the school. Elim has a subarctic climate with maritime influences. Norton Sound is ice -free generally between mid -June and mid -November. Summers are cool and moist; winters are cold and dry. AEA13-006 Grant Application Page 17 of 34 7/3112012 Renewable Energy Fund Round 6 GW7: Grant A lication SOL = ENERGYAUn4ORnY Summer temperatures average between 46 to 62 °F; winter temperatures average -8 to 8 *F. Annual precipitation averages 19 inches, with about 80 inches of snow. Like all of Alaska, Elim is subject to long periods of darkness. Reliable electric service is essential for the operation of home lighting, streetlights, and security lighting. Outside lighting greatly improves the safety of village residents. Residents rely on subsistence resources including fish, seal, walrus, reindeer, and beluga whale. Subsistence food is gathered and harvested and stored in refrigerators and freezers. Refrigeration is essential for the extended storage of perishable foodstuffs, and reliable electric service is essential for proper freeze storage of food. A geothermal power plant could augment and improve the existing power generation system by incorporating a locally available renewable resource. In addition, 7.9% of the population is below the poverty line, and the median household income is $40,179, which is 32% less than the State's median household income of$59,036. A geothermal project could stabilize and/or lower energy costs for the community, since there is no fuel cost associated with geothermal power generation and non -fuel costs can be predicted reliably well into the future. 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 • IDelivery methods AEA13-M Grant Application Page 18 of 34 7/3//2012 Renewable Energy Fund Round 6 n ii Grant Application MERGYAUMORI Y 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. We do not anticipate any issues with land access for the proposed scope of this project. Please see map showing the location of hot springs in the region and Elim i ' Native Corporation land holdings (shaded red) to the left. A letter supporting this project from Elim Native Corporation is attached; they are a partner in this proposal. 11C SCALE Elim Native Corporation has all 'MCI legal rights and privileges as a landowner, including the right to LEGEND conduct scientific research on hot s springs and use the results of such .�J research without compensation to the U.S. Y! 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 Elim Native Corporation will work with the University of Alaska to create a land use agreement that will permit researchers to access the areas of interest for the duration of this project. No formal state or federal permits will be required to complete the project. We do not anticipate there being any difficulties with permitting or land access for this project. 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 AEA13-006 Grant Application Page 19 of 34 7/3//2012 Renewable Energy Fund Round 6 A"LA_. __ Grant Application �=11V ENERGY AUTHORITY • Aviation considerations Visual, aesthetics'impacts Identify and discuss other potential barriers It is not anticipated that this project will have any environmental impact. A significant portion of this project utilizes non-invasive remote sensing and airborne methods. When researchers do access remote areas, it will be along established trails, by air, or during the winter when snowpack minimizes the likelihood of damage to the tundra. 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 de�elopmertt hacost of ro vsed renewable ever +stem The cost of this pse 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 the serve. AEA13-006 Grant Appllcation Page 20 of 34 7/3//2012 Renewable Energy Fund Round 6 CM .A. Grant Application _ C- ENERGY AUTHORITY This proposal is geared toward a preliminary exploration and feasibility assessment, which is loosely included under `prospecting' by Hattenburg, Dilley, and Linnell. We are requesting $527,908 for this effort. We believe the Hattenburg, Dilley, and Linnell (HD&L) analysis, prepared 4-24-09 for the Alaska Energy Authority makes incorrect assumptions about the underlying geothermal system, resulting in a substantial over -estimate of the cost of developing the resource. Elim is located on the Central Alaska Hot Springs Belt (CAHSB). The geothermal system should be similar to, and exploitable in a similar manner to, the system found at Chena Hot Springs. If this is the case, production and injection wells close to 500 ft in depth are likely given the project size. This drastically reduces drilling costs, putting them in the area of $1-$3M for exploration drilling and $3-7M for production drilling, as opposed to 2-$8M and 18-$36M respectively. t1-i-r shaww 06-1A O 0 16 4.8 1.3 15-20 1-2 15 0s-15 36-52 KOM— 00M 0B-1.4 05 15-3 02 18-% 1-3 23-30 1-2 IS 05-151 62-93 Elm-dM 3-6 0.1-05 2-3 0.1-05 18-36 2-5 2-4 1-25 2-4 05-1.6 31-65 .1-05 1-3 Q.1-05 3-7 1-3 2-4 05-1 OS-1 6-20 0.1-05 1 1_14 0.1_09 5-t: 1-3 2-4 05-7 1 05-1 I1-25 lctwm 01_07 1-4 0.1_OS 8_t6 02- 5 .i0 1-2 6-t0 05-1 40.0 Figure 6. Excerpt from geothermal energy project cost memo provided to AEA by Hattenburg, Dilley, and Linnell 4-24-09. Road and transmission line construction cost, estimated to be 3-$6M above, are another important factor in overall development cost. Funding for road construction is available from state and federal sources, including the Alaska Road to Resources program. As shown on Figure 7 below, plans are already being developed to construct roads leading both to Elim Hot Springs, and Clear Creek. If a viable geothermal resource were shown to exist at either of these sites, constructing these roads would become a higher priority. If funding for road construction can be obtained from other sources, project economics is significantly improved from an energy perspective. AEA13-006 Grant Application Page 21 of 34 7/3/12012 Renewable Energy Fund Round 6 ..�= pJ._A A Grant Application 4= ENERGYAUTHORrrY 14 Creek Gear ... 't� r r $wb«tae ` F ` orSprin� f r! Yam.+• .'— _ _ G PAPHIC SC Elim 1 incl. £S nt LEGEND_ 1 ELIM UPDATED ROUTES f ,,•Y ��` UPDATED ROUTES FOR OTHER VILLAGES ;�---�--a ALREADY INVENTORIED ROUTES iD12 ROUTE NUMBER r - POSS%LE DEEP WATER P! IVAGI :;JIdY.�[ �,-"i C+1 ALY?'.'l C. }� Figure 7. Inventoried and updated routes surrounding Elim. Roads accessing both (known hot springs are in the planning process. According to the Energy Pathway, total estimated annual fuel costs for Elim (electricity and heating) is $813,544. This means at today's fuel prices, Elim will spend over $16M on diesel fuel over the next 20 years. If geothennal energy could be used to offset most of this demand, then any -project costing less than $16M will produce positive net benefits. 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 rant -funded ct The proposed survey will help determine if geothermal energy is feasible and economically viable for the community of Elim. By definition, an economically viable project will bring down and stabilize energy costs over the long term for the benefit of the entire community. If Elim is to utilize up to $1 million in assistance from the Norton Sound Economic Development Corporation Community Energy Fund to leverage future proposals for construction, they must be able to demonstrate that their project is shovel ready, and that it will produce sustained benefits for the AEA13-006 Grant Application Page 22 of 34 7/31/2012 Renewable Energy Fund Round 6 Grant Application L C ENERGY AtrFHORmr entire community. Alaska Village Electric Cooperative currently provides electricity in Elim. Per the attached letter of support "AVEC understands the City ofElim, the Elim Native Corporation, and the Elim Tribe are working to prepare a grant application to study geothermal energy feasibility at Elim Hot Springs. The governing entities of Elim will work with AVEC to ensure any future project would be able to connect and operate in conjunction to the existing power generation system in Elim. We support feasibility investigation of this project and will work with the governing bodies ofElim to help move this investigation forward." Village leaders will decide what business structure is in the best interest of the community when sufficient information is available. If their decision is to form an independent power producer to own, operate, and maintain the project for its useful life, then the power will be priced at a cost - based, rather than an avoided -cost rate. Potential customers include retail and commercial energy consumers in the Village of Elim. If the geothermal resource is large enough, it might be cost effective to supply power to other communities in the region, but the project is in too early a stage to make this determination. 4AA 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. 99 % Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) s. 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 3 Detroit Diesel, 1 MTU 236 kW x 2, 363 kW, 506 kW 8 years old (363 kW overhauled in 2008) 13.63 kWh / gallon (PCs; 2009 report) b) Annual OW cost (if system is part of the Railbelt grid, leave this section blank) s. Annual O&M cost for labor ii. Annual O&M cost for non -labor 1 The Railbelt grid connects all customer, Go:den Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. AEA13-006 Grant Application Page 23 of 34 7/3112012 Renewable Energy Fund Round 6 . _ Grant Application � EMERGYAurHoRrry 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] 1,123,447 ii. Fuel usage Diesel [gal] 82,189 Other iii. Peak Load 269 kW _ iv. Average Load 146 kW _ v. Minimum Load vi. Efficiency 13.63 kWh / gallon (PCE 2009 report) vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 100,000 gal ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other r Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity Geothermal heating & electricity will provide 90% of (Wind, Hydro, Biomass, other) electricity and 100% of heating. lkW or MMBtu/hrl b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 1,011,102 ii. Heat [MMBtu] 100,000 gal 13,870 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 8,219 gallons diesel for electricity Project Cost a) Total capital cost of new system b) Development cost c) Annual O&M cost of new system d) Annual fuel cost AEA13-006 Grant Application Page 24 of 34 713/12012 Renewable Energy Fund Round 6 Grant Application of r t'ENERGY AUTHORrIY Project Benefits a) Amount of fuel displaced for L Electricity 73,970 gallons ii. Heat 100,000 gallons iii. Transportation b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits 835,789 / year Future price of fuel unpredictable (unknown) Power PurchaselSales Price �! I a) Price for power purchase/sale Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback (years) Can't estimate until this project is complete 4.4.5 Proposed Biomass System Information Please address the following items, if know. (For Biomass Projects Only) SECTION 5- PROJECT BENEFIT Explain the economic and public beneffts 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 pLoject AEA13-006 Grant Application Page 25 of 34 7/3//2012 Renewable Energy Fund Round 6 Grant Application Potential annual fuel displacement: The project could decrease diesel use by up to 180,657 gal/yr, and up to 3.6M gallons over the lifetime of a geothermal project. Based on cost estimates from the Energy Pathway, this could save the community over $16M in diesel fuel at current pricing. The earliest a project could begin operation would be 2016-17. Anticipated annual revenue/Potential additional annual incentives/Potential additional annual revenue streams: Because this project is in the feasibility and concept design stage, revenue and incentives are unknown. However, geothermal energy is eligible for federal tax credits, and additional income could be generated by the project through the sale of `green tags.' It is also likely that the availability of stably priced low-cost energy will promote economic growth, leading to increased demand, and increased revenue for the geothermal facility. Nun -economic public benefits: It is difficult to estimate the value of these benefits. A number of possible scenarios might unfold over the project's 20 year lifetime. Geothermal power offers a hedge against uncertainties in the world energy market. It is a very real possibility that conflict in the oil -rich regions of the world, increased demand from China, or declining production in major oil fields, could quickly cause world petroleum prices to soar. If this happens, the value of geothermal power in Elim, and in other communities that derive their energy from local sources, could turn out to be quite high. The proposed resource assessment will contribute to the overall body of knowledge about springs located on the Central Alaska Hot Springs Belt (CAHSB). Systems along this belt appear to have common geologic factors constraining them, and better understanding of any one of these systems contributes to better informed decisions about the rest. Stabilized energy costs would allow community entities, including the City and Tribe to plan and budget for important community infrastructure listed in the Elim Local Economic Development Plan 2005-2010 Addendum B Updated Priorities (Kawerak, February 2009) including a teen center and tribal hall (community infrastructure sociallcultural priorities 1, 2). The availability of affordable geothermal power might enable Elim to move forward with other economic development projects, including a small sawmill, or woody biomass processing facility, that are not feasible today. Reduced dependence on imported hydrocarbons will produce benefits including: • Reduced potential for fuel spills or contamination during transport, storage, or use (thus protecting vital water and subsistence food sources) • Improved air quality • Decreased contribution to global climate change from fossil fuel use 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 sy§tems that may be require to continue o eratio>1 AEA13-006 Grant Application Page 26 of 34 70/2012 Renewable Energy Fund Round 6 N_ A Grant Application .W—,ENERGY ALJTHORMY j • Commitment to reporting the savings and benefits The geothermal project in Elim will not move forward beyond the proposed project unless it can be operated sustainably, and for the benefit of the community. Right now, it is difficult to determine with any certainty whether or not this can be done; more information is needed. Upon completion of this project, UAF will provide information to the SAG, and they will make a go / no-go decision about whether to move forward. Sustainability and lower cost energy will be key criteria in their decision. _ 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. _ This project would utilize techniques learned under a DOE award for Pilgrim Hot Springs, and apply those techniques to the Elim geothermal resource. UAF will use these techniques to correlate heat flow to sustainable power generation for moderate temperature geothermal systems of analysis and apply those techniques to determine a potential development strategy for the proposed Elim project. We will begin the assessment at the earliest possible date after award, ideally in August, 2013. We may request reimbursement of costs to July 1", 2013 in order to allow us to begin mobilizing for the 2013 field season and avoid delaying the project a full year. The City of Elim has not been awarded any geothermal grants, but has successfully completed a number of grants in the past as outlined in section 3.1. However, this project compliments an award to assess the wind resource in Elim, funded under Round IV of the Renewable Energy Fund in the amount of $1421500 (AVEC). It will not be possible to decide whether moving forward with costly wind turbine construction is Elim's best option until the geothermal resource is better understood. 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. In 2009 Elim resolved that "identifying, developing and implementing local and renewable energy resources in a sustainable, fiscally and environmentally responsible manner is a priority." Geothermal is identified as a priority in Elim's Local Economic Development Plan. The attached letters and resolutions of support show geothermal has unanimous support from all three village entities. No local opposition to the project is evident or anticipated. 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. AEA13-006 Grant Application Page 27 of 34 7131/2012 The following narrative corresponds with budget requests for the City of Elim Geothermal Resource Assessment. Salaries & Fringe Benefits Senior Personnel Elim salary costs will fund project logistics, oversight and participation by Elim city staff, who will contribute to logistical and administrative tasks related to this project. Total salary and fringe costs: $57,000. Travel Funds are requested to support travel to Elim for SAG meetings related to the project. Two in - person meetings are planned, with 1 traveler from Unalakleet (NESDC), 2 from Anchorage (AVEC) and 3 from Fairbanks (UAF). Airfare costs are estimated at $800 per RT ticket from Unalakleet, $1,000 from Anchorage and $800 from Fairbanks. Per diem is estimated at $52. ALAASKA Renewable Energy Fund �� ENERGY AUTHORITY Miscellaneous travel costs of $125 per person per trip are also added (2 trips, 6 people), to anticipate for additional expenses involved in remote travel in Alaska. All pricing is based on current pricing, US Government figures, and UA Board of Regents policy. Total cost to Project: $13, 000. Other Direct Costs Subawards. Subcontracts will be issued to the University of Alaska Fairbanks for research on this project. Letters of commitment and detailed budgets are included in this proposal. Total cost of subawards to project: $345,871. (see corresponding budget narrative, below). Cost Sharing Additional cost share is provided by the City of Elim in the form of lodging for researchers in the city. Cost is estimated at $189/night, for an anticipated 10 tights (2 meetings, 5 people needing lodging), plus an estimated 30 nights for researchers during project work. Total cost share from City of Elim: $7,560. Cost share is also provided by the Elim IRA Council, providing in -kind support in the form of a driver ($40/hour) who will provide ATV access to field sites as well as transport to and from the airport for research and meeting visits. (250 hour max). Total Elim IRA Council cost share for this project: $10, 000. Total cost share: $17,560. The following narrative corresponds with budget requests for contributions from the University of Alaska Fairbanks to the City of Elim Geothermal Resource Assessment. Salaries Senior Personnel. Funding to support a total of 174 hours is requested for the Principal Investigator (Holdmann) of this project. Per UAF policy, executive staff receive leave benefits at a rate of 20.5%, calculated on salary. Total cost to project: $14,040. Funding to support a total of 174 hours is requested for the co- Investigator (Prakash) of this project. Per UAF policy, faculty receive leave benefits at a rate of 1.7%, calculated on salary. Total cost to project: $10,395. Other Personnel. Funding to support 174 hours of salary is requested for Research Associate (Newberry), who will participate in project tasks. Per UAF policy, faculty receive leave benefits at a rate of 1.7%, calculated on salary. Total cost to project: $14,410. Funding to support 40 hours of salary is requested for Research Associate (Chevy), who will participate in project tasks. Per UAF policy, faculty receive leave benefits at a rate of 1.7%, calculated on salary. Total cost to project: $2.058. Funding to support 348 hours of salary is requested for Research Associate (Haselwimmer), who will participate in project tasks. Per UAF policy, non -union faculty receive leave benefits at a rate of 2.2%, calculated on salary. Total cast to project: $9,418. Funding to support 174 hours of salary is requested for Research Associate (Mager), who will participate in project tasks. Per UAF policy, staff receive leave benefits at a rate of 21.2%, calculated on salary. Total cost to project: $6.154. n � "WMW ALASKA t ENERGY AUTHC$RJTY Renewable Energy Fund Funding to support 174 hours of salary is requested for Research Associate (Pathan), who will participate in project tasks. Per UAF policy, staff receive leave benefits at a rate of 21.2%, calculated on salary. Total cost to project: $5,915. Funding to support 174 hours of salary is requested for Research Associate (Muhando), who will participate in project tasks. Per UAF policy, faculty receive leave benefits at a rate of 1.7%, calculated on salary. Total cost to project: $8,880. Support is requested for two Masters Level Graduate Student Research Assistants for one year. Students work 20 hours per week during the academic year (760) and 40 hours per week during the summer (560), for a total of 1320 hours. INE/ACEP students are paid salary plus benefits on a per hour basis. GI grad students are paid on a stipend basis- $994.57 per pay period, with 19 pay periods per academic year and 7 pay periods per summer. Total cost to project: $55,677. Fringe Benefits Staff benefits are applied according to UAF's benefit rates for FY12, which are negotiated with the Office of Naval Research (ONR) annually. Rates are 31.1% for executive salaries, 31.6% for senior salaries, 31.1 % for non -union faculty, 45.7% for staff, and 8.7% for graduate and undergraduate students (summers only). Additionally, UAF requires that any graduate student supported by a research project also receive health insurance while working on the project. Costs for academic and summer coverage in FY 12 are $1500 with an anticipated 10% annual increase. Total cost to project: $30,060. Travel Funds are requested to support travel to field sites for this project. Airfare costs are estimated at $800 per RT ticket (Fairbanks to Elim, AK). Per diem is estimated at $202. All pricing is based on current pricing, US Government figures, and UA Board of Regents policy. Total cost to Project: $14,862. Other Direct Costs Materials & Supplies. A total of $9,247 is requested for supplies, primarily for the purchase of a weather station, satellite data and field supplies. Publication & Dissemination. A total of $2,000 is requested to fund presentation and dissemination costs, to defray the expenses of publishing our results in professional journals and other dissemination costs. Services Funds of $5,000 are requested to cover the cost of payment for local hires, who will contribute to Task 2. Funds of $10,396 are requested for an airborne survey. Funds of $40,000 are requested to cover the cost of helicopter rental, which is necessary to gain access to field site(s). Total cost to the project: $55,396. Consultant Services Funds are requested for consultant services provided by Dick Benoit, who will contribute xxx to the project. Total cost to project: $2.500. Smnple analysis Funds are requested to support DRI (water) analysis necessary for this project. Samples are $750/sample, 12 samples are needed. Rock sample analysis is also necessary for the project, at a cost of $34/sample for 30 samples. Total cost to project: $10,020. Other. UAF requires that any graduate student supported by a research project over the course of the academic year also receive tuition support for the life of the project. Costs are $15,048 (tuition) and costs increase by 10% annually. In addition. GI graduate students receive funds for fees, totaling $1984 in FY12, for a total of $32, 080. Indirect Costs Facilities and Administrative (F&A) Costs are calculated according to the existing MOA between UA and the State of Alaska, at 25% of the Modified Total Direct Costs (MTDC). MTDC includes Total Direct Renewable Energy Fund r -ALASKA �' ENERGY AUTHORITY Costs minus tuition and other student support, subaward amounts over $25,000, and equipment. 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T °' a L �6 E v O C u) N C 'S ` O C E C m a W o _`0 a a s U o 05 ii L •0 N M at LA c0 h CL Renewable Energy Fund Round G Grant Application srrcr�t�se- �►� �_ ,S.:,r. : F— i auMofte the above persons) to sign Gram [TDmments= (Highest ranking a rPr&21UO,jcOmrnWAyjmunIdpSI off6ai) -34?a o Number: ederai Tax ID 0: AEM3-MOnntAPP-"i0e Dd 38 // e Limos . fOrlll w11101SMr 1Uste Is i cage to aw sbm fin, ,M120,z Renewable Energy Fund Round 6 p� � Grant Application I >>iE4"f10H w �ppTATI� AND CEit�A�� $U8fW TW POI.L*WW DOCl11M WrM YOUR APPUCAWK* as of pppliCant'e proloct Manager. key staff, parbo . A. Contact infamurO +a, mwxn per a n tom secdon 3.1 arid 3.4 APPI�th eomunafftR,am as kad to19"ra WW Win," sutxn` ed WO aPP"+catloft. it the WdWWUSM 60 not want their rasunAs Posted. B. Letters clamor Y k)cW support par Gaon form 9oclloe C. An oiacb=lk won of the anti** a pptkalion on CD per WA SaelMon 1.7, D. Governing Body PAsoiution or oth" Tom►m action taken try govaming body or manage W "PA Section 1.4 that: Commtts tho organiodon to Pm" the mxWW A raeouries for PNW at the match amour" intticated in the aPP"O"" has o otao tl to AWborteos the individual rnc� GVne the &PP t oonmMthe do Vw oblgawna under tlw gr2 ft P�ldes as point of contact too represent the aPpi� for PAP of Oft Cartifias ttw applicadd is in comPRance with AApAtaMa federal, aft am IOcal, tawr, toduding extorting crAdit and fadorai tax otsP_Bations. E CERTWAWN The 4MId0 sped that this app�� for a mnerae bW energy 9 t tntthfld and oorroct, and that Wa appricam ise ink � � and writ, Ar 1paderal and ateie IaMa indudUO mat they cart indeed commie s�►y bD these of igatiWW os►s. eal•t,• C. i Deb AEA131WSGrantAPPIGO ► 2 dr(- in 7l3M12 August 15, 2011 To: Alaska Energy Authority 813 W. Northern lights Blvd. Anchorage, Alaska 99503 Attn: Butch White, Grants Administrator From: City of Elim Crystal Ivanoff-City Clerk P.O. Box 39009 Elim, Alaska 99739 Ph: 890-3441 Fax: 890-3811 citvofelim@yahoo.com Dear Sir, This is a formal endorsement from the City of Elim for the Resource Assessment/Feasibility Analysis of potential geothermal sites and associated transmission lines near the community. Ellm is taking the lead and working closely with the Elim IRA, Elim Nature Corporation, University of Alaska -Gwen Holdmann and Anupma Prakash, Walter Rose with Kawerak on Round 5 for Resource Assessment / Feasibility Analysis of potential geothermal sites near the community. Concerning the ownership the Elim Native Corporation owns the land at the Elim Hot Springs and no restrictions apply for development. On the Clear Creek Not Springs according the BLM 15% surrounding the hot springs can be developed, As per Robert Keith -President Elim Native Corporation, President of Elim IRA Council. The point of contact is Crystal Ivanoff-City Clerk at the above address and phone number. This has been ongoing for quite a number of years and Elim looks forward to working with all parties Involved to reaching the goal of finally throwing the switch for Geothermal Electricity in our area. The Elim City Council meets on the first Monday of every month, the Elim IRA the first tuesday and the Elim Native Corporation the first thursday of every month. Thank you for your time and look forward to working with you on this important issue. Sincerely, Crystal Nanoff-City Berk -City of Elim Edwin Kotongan-Mayor/City of Elim 08 United States Dept. of Agriculture $ 39,751. Water Treatment Study -ANTHC — RURAL DEVELOPMENT FILTERATION REPLACEMENT 09 USDA $ 75,000.00 ANTHC Preliminary Engineering/Environmental Report Evaluate Existing MasterPlan & Sanitation Facilities & Develop a new sanitation improvement plan and complete a water resource Investigation 07 Dept of Commerce, Community & Economic Development $25,000.00 08 Department of Commerce, Community & Economic Development - DCRA Community Playground $33,104.76 06 State of Alaska DCCED / ANTHC Water & Sewer Sanitary Master Plan / Solid Waste Landfill Assessment $ 200,000.00 98 Municipal Landfill Project DCCED $147,660.00 08 Brownsfield Assessment Old AVEC site 09 Brownsfield Assessment City Shop City of Elim P.O. Box 39009 Elim, Alaska 339739 Ph: 907-890-3441 Fax: 907-890-3811 Email: ciZmfelim@yahoo.com List of AWRIones Crystal Ivanoff - City Clerk Esther Aukongak - Bookkeeper RaeLene Keith - Office Clerk Edwin Kotongan - Mayor. - - - - r•°o ACEP September 14, 2012 To: Mayor Edwin Kotongan, City of Elim From: Gwen Holdmann, Director, Alaska Center for Energy and Power Re: City of Elim Renewable Energy Fund Round 6 Proposal Dear Mayor Kotongan; We are pleased to support your proposal submitted under Round 6 of the Renewable Energy Grant Fund Program, entitled `Elim Geothermal Resource Assessment / Feasibility'. We believe the community of Elim is one of the best locations in Alaska to develop geothermal energy to provide energy to a local population. The fact that the closest resources are located on lands owned by the Elim Native Corporation could streamline development if found to be feasible. We wish you luck with your submission, and look forward to working with you if the project is handed. Sincerely, Gwen Holdmann, Director Alaska Center for Energy and Power University of Alaska Fairbanks Gwen. HoldmannQ.alaska.edu (907)590-4577 Alaska Center for Energy and Power • University of Alaska Fairbanks • 814 Alumni Drive P.O. Box 755910 • Fairbanks, Alaska 99775-5910 • Tel: (907) 474-5402 • Fax: (907) 474-5475 AVEC'�� August 15, 2011 City of Elim Elim Native Corporation Elim Tribe P.O. Box 39009 Elim, Alaska 99739 Regarding: Letter of Support for Renewable Energy Grant Program Round V: Geothermal Studies for Elim Hot Springs To the Governing Entities of Elim; Alaska Village Electric Cooperative, Inc. (AVEC) understands the City of Elim, the Elim Native Corporation and the Elim Tribe are working to prepare a grant application to study geothermal energy feasibility at Elim Hot Springs. The governing entities of Elim will work with AVEC to ensure any future project would be able to connect and operate in conjunction to the existing power generation system in Elim. We support feasibility investigation of this project and will work with the governing bodies of Elim to help move this investigation forward. Please include this letter of support in your grant application package. Sincerely; Meera Kohler President and CEO 4831 FAG I STREET ' ANCI10RAGE. AI ASK ' PI10NF (907) 561-1819 ` FAX (907) -562-4056 Water e m I Couu 'C O L!M P.O. ftX 70 �Erim, Alaska 99739 e 4'3C#907-890-3737 TaX373 �a y � u 4 0 0 4 DT: August 11, 2011 TO: Whom it may concern FR Robert A Keith, President Elim IRA Council RE: City of Elim Geothermal Resource Assessment Elim IRA Council members and Elim Native Corporation Board members met with UAF via teleconference. The City council were having their regular monthly so they were not present for this teleconference. It was the consensus of those present that the City of Elim was the best entity to apply for a Alaska Energy Authority Grant, to assess our numerous Hot springs on Elim Native Corporation lands. It is without any reservation that Elim IRA Council supports The City of Elim pursuing AEA funding. If you have any questions call or email us. Sincerely, ief Cc: Elim City Council Elim Native Corporation Board Elim IRA Council ELIM NATIVE CORP. August 12, 2011 To Whom it may Concern Elim Native Corporation P.O. Box 39010 Elim, AK 99739 Re: Letter of Support for the AEA Geothermal Resource assessment The Elim Native Corporation Board of directors is in full support of the City of Elim grant to pursue geothermal resource assessment funding. To have more detailed knowledge of our resources is the first step in developing those resources. Having UAF personnel as a active partner in developing a greater knowledge of our resources and potential development is best way to travel the path to success. cc Elim city council Elim Native Corporation Board Elim IRA Council Vi1 i.II iVVV VJ• LV +... .a .l ..vim Rights and Responsibilities of Elim Native Corporation and BLM as set out in Sec. 19(c) of ANCSA, as amended by the Act of May 2, 2000 Rights of Elim Native Corporafion Al! legal rights and privileges as a landowner, subject to the covenants, reservations, and terms and conditions specified in the Act of May 2, 20M. Sec- 19(e)(3XC). All rights to the timber resources for any use including, but not limited to, construction of homes or cabins, cutting firewood or for other domestic uses, except: cutting and removal of merchantable timber" for sale is prohibited; creation of roads and related infrastructure for the cutting, removal, and sale of merchantable timber by Ehm or others is also prohibited. *merchantable timber means timber that can be harvested and marketed by a prudent operator. Sec. 19(c)(4)(A). All rights and remedies available against persons, jointly or severally, who cut or remove merchantable umber for sale. Sec.19(cx5XA). Permit surface occupancy, mineral development, or other development or activities near the Tubundik River or Clear Creek, except: Not on the bed of or within 300 feet of the ordinary high water line of either water body if the occupancy, development, or activities would cause or are likely to cause erosion or siltation of the water course to an extent that would significantly adversely impact water quality or fish habitat_ Sec.19(cx4XC). Conduct scientific research on the hot springs and use the results of such research without compensation to the U.S. Sec. 19(c)(5)(E). Lornrnerciai development of the hot springs area up to a maximum of 15°/6 of the hot springs and any land within %. mile of the hot springs. Such commercial development shall not alter the hydrologic or thermal system associated with the hot springs. Not less thail 85% of the lands within '/4 mile of the spri.nos shall be left in their natural state. Sec. 19(cx5)(F). VI/LJI LVVY Ll-6V IV' ✓JI1-AA I __ - Rights of the United States To enter upon the ]ands in order to achieve the purpose and enforce the covenants, reservations, terms, and conditions of the Act of May 2, 2000, after providing reasonable advance notice to Elim and providing Elim with an opportunity to have a xeprescmatiVe present upon such entry. Sec. 19(c)(5)(A). kights and remedies available against persons, jointly or severally, who cut or remove merchantable timber for sale. Sec. 19(c)(5)(B)- in cooperation with Slim, the right --but not the obligation —to reforest in the even' previously ewuing merchantable timber is destroyed by fire, wend, insects, disease, or other similar man-made or natural Occurrence (excluding roan -trade occurrences resulting from the exercise of Elim of its lawful rights to use the lands). Sec.19(c)(5)(C). The right of the public to use the easements reserved under Sec- 17(b) of AN CSA to visit (for aoncommercial purposes) the hot spnnP and to use any Part of the hoc springs in or commercially developed. Sec. 19(eX5XD).�-_. The right to enter upon the lands containing the hot springs to conduct scientific research on the hot springs, and to use the results of such research without c1DmPens1tion to Elim. Sec. 19(eX5)(E). _ .._.....__ Responsibilities of Elim Native Corporation Prohibit the cutting, removal, and sale of rnerchanmble timber or the creation of roads and infrastructure associated with cutting, removal, and sale of muchautable timber. Sec. 19(c)(4)(A). Prohibit surface occupancy or any other activity on the bed of the Tubutulik River or Clear Creek or writhin 300 feet of the ordinary high water line of either water body, for purposes associated with mineral development, other development, or activity, if the development or activity would cause or are likely to cause erosion or Siltation of either water Course to an rodent that would significantly adversely impact water quality or fish habitat. Sec. 19(e)(4)(C). UA/ lJ/ LUUO UJ. 4O 704000JOAA i M1iL Nh Respons*ilides of Elim Native Corporation, continued Limit commercial development of the hot springs to a maximum of 13% of the hot springs and the area within A mile of the hot springs, and prevent such development from aiwbg the natural hydrologic or thermal system associated with the hot springs. Sec. 19(cX5)(F). Enter into a Memorandum of Understanding with BLM to implement the provisions in the Act of May 2, 2000, including reasonable measures to protect plants and animals in the hot springs and on the lands within % mile of tie hot springs. The MOU shall be reviewed by the parties periodically, and may be amended, replaced, or extended. Such review shall also include the authority to relocate any of the easements reserved pursuant to Sec. 19(c)(6)(D), as necessary. Sec. 19(cX6XA). lneorporate the covenants, reservations. terms, and conditions into any deed or legal document by whkh it conveys any interest in all or a portion of the lands, including without limitation, a leasehold interest. Sec. 19(c)(6)(B). Responosi'bi�liRies afthe Unified States Achieve the purpose and enforce the covenants, reservations, terms, and conditions of the Act of May 2, 2000. Sec. 19(cx5)(A). Enter into a Memorandum of Unde rstandmg with BLM to implement the provisions in the Act of May 2, 2000, including reasonable measures to protect plants and animals in the hot springs and on the land within % mile of the hot springs. The MOU shall be reviewed by the parties periodically, and may be amended, replaced, or extended. Such review shall also include the authority to relocate any of the easements reserved pursuant to Sec. 19(c)(6)(D), as necessary. Sec.19(cX6)(A). Manage the easements reserved under Sec. 17(b) of ANCSA and those reserved under Sec. 19(c)(6)(D). *SINGLE ROOM* ROOM # 1 SINGLE OCCUPANCY-W0.00/NIGHT DOUBLE OCCUPANCY-$150.00/NIGHT Revised. hebruary 1, 2011 *SINGLE ROOM* ROOM # 2- SINGLE OCCUPANCY-$100.00/NIGHT DOUBLE OCCUPANCY-S1SO.00/NIGHT Revised:February 1, 2011 *APARTMENT RATES * ROOM #3- S189.00/NIGHT-PER PERSON $189.00/NIGHT-PER PERSON Revised: February 1, 2011 CITY OF ELIM SLIM, ALASKA 99739 Effeetive May 10, 2011 Equipment Rental Rates: Equipment Hr Rate (Shot Term) (with fluids, w/o fuel Wet Rate ( with fluids and fuel) Wet w/Op ( with fluids, fuel and Operator ) Daily Weekly 1. D8K 150.77 164.83 189.93 95155 4,5W.00 2. D8 80.00 8&44 113.44 63437 2,537.48 3. Dump Truck 75.00 82.04 107.04 50238 1,972.90 4.644C 150.00 157.04 182.04 54432 2,159.87 5.950F - 150.00 158.44 183.44 697.80 2,762.14 6.140G 150.00 159.44 183.44 697.80 2,731.00 7.450JD 75.00 77.91 402.81 404.75 1,567.98 & 410E 100.00 104.23 129.23 446.61 1,723.74 9. Fuel Track 50.00 60.31 85.31 200.00 10. Flat Bed 75.00 200.00 11. Davis Trailer 25.00 12. Excavator Hitachi 150.00 158.44 183.44 13.972 Loader 182.00 14.D4H Tractor 15.450D 16. Caseloader Note: *1. For Daily and Weekly dry rates renters shaA be responsible for operator's wages, maintenance, fueling, repair, and replacement or parts while equipment is under their control. (Chapter 39,SECTION 3) 2. Day rate is based an an 8 hour day, then prorated. 3. Weekly rate is based on a 40 hour week, than prorated. 4. Rates are subject to change any time. ` 5. Deposit on estimated rental will be required unless credit has been established. 6. City approved operators only or CDL certified. 7. The City reserves the right to refnse-to rent equipment. 8. Must use City Equipment Logs and sgbmit fignres.only. 0.I)cjI VAQr i, Uk-�l ills/YI/'Lbll ltl: lab `JUI f f 2bl I UiLLIVIN NAI WE l;.aC . VA(*- Fll Cny of Flint P.O. D" SOM FAX: (!a7=ti9 MIL Email; MsolutionIt IL A RINOLLMON SUPPORTM Tilt CITY OP 6UM J UNIVERSITY OF MASA FAIRMMIKS VD MiMIRM vFgW GWTPMWAL NSOMW ASSEWHEIM PROPOW TO THE ALASKA RENEWARE Eit W GRANT FUND ROUF* V, AND AVritORi> 4 M4WD CMTRIaLfflONS sYTHE CM OF KW TO IM PROJECT WiIMM CRY OF KUM gaWutlon ll11-03 "rMk-ad idgnWyMit, devebpirld and Vnpl*nMWft kicN end nameableenergy resources in a sasbdnable, ftscelly and envbw mer"W resPw*W mintier Is e prkirlty'; and WHEREAS, multiple potiiermel anom&W4 in the form of hot sprir> M ane knMM W erdst on nQW1 dgyicult to sems land owned by the Eran l SUM COMW+tiOn rWWW I m, end WHEREAS, the Elm "local Eoorwnk Drrveiopmem PW updated in M9 klenWW taotltemwl astle number one economic devdopmerrt PrkwIhR and WHOWAS, a sclentilic resource asmsmienc and tessWity study, taadlng to a better underYta AM of the benefits and reins ofpothemm options available, Is the first step towards attalri ft that Pdo ft and WHHIEAS, The City of IIIK as a city pftMmOK b ellple to apply for hmdint from the Alaska Renewable Enemy Grant FuAd Round V; and WNMA16 the Elim City Coiuicll and Mayor Edidn Kotorigan has the authorky to cornmh the City Of Elam to oblIptlona under the putt; and WHER Ati, the City of ENM cables K is in complimen with appli xW federal. Mtk end local; awes indWkg exIdit crtdlt and fidaral tax obliplions; THEiaWM DE R RMVW, The City of Elm supports subMW t a proposal to the Alaska ltenawseblt Energy Grant Fund round V TAMmunlglof Ehm GaothenYW Resource AMO MWe In part "MW with tm unNersky of Alaska Fairbanks; and at iR FURTHER RESOLVEO, VW MY M CAM VAI provide I*01 Support to the proleCtlnckidkit coorMWM,L hosthit. attd Otte Wft 4 Stakaboder Advisory Group magunp (two a phone, two at City tJU/11/.dU11 lb:Ob WIffyjlbl I uLA-UVIN NAI1Vt WX VAL*- UI :. :+G'S:AM. buiiding b EHrri), corMjb#rte 90 nights of lodging for UAF resetrthers and 30 mghU of lodging for Stakelwlder AdWsory Grwtp member at UN City tiulldkig In Ellin vduad atS7,W to the project: and dE IT FURTHER RDMVW that UrMfSKY of Alaska is hereby aothod Ud, upon executbn and by irwrbal aaeptanee of a Cooperative Project Agreement with the City of Ellm, to negotiate, f■ecute. and edminister aN documents, contracts, expenditures and &green OM ax negorMed in the woperatWO Projea Agreerrier% and to manage funds in acwrdanee with the CooperatWe Projea Agreement on the City of fWs behalR CERTMICATION I herd" cen ry that the foregoing Resolution was adopted eta duly converted 0*04 Oft?" City of Orn Council st which a quorum was present, by a vote of Z in furor, _ Opposed. _ abMWned on this 26 day of August, 2011. UN It 1 1 �.►.r a�J//l� / �l�:.v�ilf► Resolution # A RESOLUTION SUPPORTING THE CITY OF EUM / UNIVERSITY OF ALASKA FAIRBANKS APPLICATION TO THE ALASKA RENEWABLE ENERGY GRANT FUND ROUND V "COMMUNITY OF SLIM GEOTHERMAL RESOURCE ASSESSMENT" AND AUTHORIZING IN -KIND CONTRIBUTIONS WHEREAS, The Native Village of Elim is a federally recognized tribe under the Indian Reorganization act of 1934; and WHEREAS, The Native Village of Elim, acting as a recognized governing body has the authority to establish relationships and enter into contracts for the benefit and well being of the Tribe; and WHEREAS, The Native Village of Elim consists of 7 board members to oversee 490 tribal members; and WHEREAS, The Native Village of Elim resolution #2009-13 (attached) "resolved identifying, developing and implementing local and renewable energy resources in a sustainable, fiscally and environmentally responsible manner is a priority; and WHEREAS, multiple geothermal anomalies, in the form of hot springs, are known to exist on rugged, difficult to access Tribal land nearby the Elim; and WHEREAS, the Elim "Local Economic Development Plan" updated in 2009 identifies geotherral as the number one economic development priority; and WHEREAS, a scientific resource assessment and feasibility study, leading to a better understanding of the benefits and costs of geothermal options available, is the first step towards attaining that priority: THEREFORE BE IT RESOLVED, The Native Village of Elim supports the University of Alaska Fairbanks proposal to the State of Alaska Renewable Energy Grant Fund round V "Communityof Elim Geothermal Resource Assessment," and BE IT FURTHER RESOLVED THAT, the Native Village of Elim will provide local support to this project including participating in four Stakeholder Advisory Group meetings (2 in Elim, 2 by phone), providing additional information on the location of potential geothermal anomalies, and assisting UAF researchers in safely and effectively accessing remote sites through the in -kind contribution of an all terrain vehicle and a driver who is familiar with the area to be surveyed and experienced in dealing with large aggressive wild animals, for a period not to exceed 250 hours over the course of the project. The Native Village of Elim will also provide transportation to and from Elim airport for UAF researchers and out of town Stakeholder Advisory Group participants. The value of these in -kind contributions is $10,000. CERTIFICATION I hereby certify that the foregoing Resolution was adopted at a duly convened meeting of the Elim IRA Council at which a quorum was present, by a vote of _ in favor, _ opposed, — abstained on this th day of August, 2011. Robert A Keith/President Wallace Amaktoolik Jr./Secretary LLIYI 9 NAI'l V t * UUQPII io Resolution #I A RESOLUTION SUPPORTING THE CITY OF EUM / UNIVERSITY OF ALASKA PROPOSAL "COMMUNITY OF EUM GEOTHERMAL RESOURCE ASSESSMENT' TO THE ALASKA RENEWABLE ENERGY GRANT FUND ROUND V, AND PERMITTING RESEARCHERS TO ENTER UPON NATIVE CORPORATION LANDS FOR THE PURPOSES OF THIS PROJECT WHEREAS, The Elim Native Corporation (ENC) is a 19b ANCSA corporation with 350,000 acres of surface and subsurface ownership; and WHEREAS, multiple geothermal anomalies, in the form of hot springs, are known to exist on Elim Native Corporation land; and WHEREAS, Ellm Native Corporation has the right to conduct scientific research on the hot springs and use the results of such research without compensation to the U.S. ANCSAeffmWed May 2,200osec19fc)(VE), and WHEREAS, the Elim "Local Economic Development Plan updated in 2009 identifies geothermal as the number one economic development priority; and WHEREAS, a geothermal reconnaissance and feasibility assessment leading to a better understanding of the benefits and costs of geothermal options available, is the first step toward attaining that priority; and WHEREAS, The Elim Native Corporation board of directors consists of 7 board members to oversee the corporation; and THEREFORE BE IT RESOLVED, The Elim Native Corporation board supports the City of Elim / University of Alaska proposal to the Alaska Renewable Energy Grant Fund round V "Community of Elim Geothermal Resource Assessment;" and BE IT FURTHER RESOLVED THAT, Elim Native Corporation will work with the University of Alaska to create a Iand use agreement that will permit researchers to access the areas of interest for the duration of this project. BE IT FURTHER RESOLVED THAT, Elim Native Corporation will provide local support to the project including attending four Stakeholder Advisory Group meetings (2 by phone, 2 in Elim), providing additional information on the location of potential geothermal anomalies, and assisting with the access of remote sites. CERTIFICATION I hereby certify that the foregoing Resolution was adopted at a duly convened meeting of the Elim Native Corporation Board at which a quorum was present, by a vote of _ in favor, _ opposed, _abstained this "' day of August, 2011. Robert A. Keith / President Darla Jemewouk / Secretary NOTE: THIS RESOLOON IS NOT OFFICIAL U L SIGNED. IN ACCORDANCE WITH FREQUENTLY ASKED QUESTIONS FROM PRIOR RENEWABLE ENERGY GRANT FUtJD ROUNDS,THE ALASKA ENERGY AUTHORITY WILL BE PROVIDED WITH A SIGNED COPY IN A TIMELY MANNER.