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Home My WebLink AboutCVDA Round 6 9-24-12.submittedRenewable Energy Fund Round 6 Grant Application J400D 400IF-)ENERGY AUTHORrY 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.- hftp://www.akenergyauthority.org/RE Fund-6.html • If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at scalfa@aidea.ora. • 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 27 7/3/2011 Renewable Energy Fund Round 6 4W. � -- _, Grant Application 4W ENERGYAUTHORrrY SECTION 1 — APPLICANT INFORMATION Name (Name of utility, IPP, orgovemment entity submitting proposal) Copper Valley Development Association Type of Entity: Governmental Fiscal Year End 06/30 Tax ID # Tax Status: -For-profit or Xnon- rofit check one Mailing Address Physical Address P.O. BOX 9 Mile 111 Richardson Highway Glennallen, AK 99588 Glennallen, AK 99588 Telephone 907- Fax Email 822-5001 907-822-6569 Ihoke@coppervaiiey.org 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Title Jason Hoke Executive Director Mailing Address P.O. Box 9, Glennallen, AK 99588 Telephone Fax Email Ihoke@coppervalley.org 907-822-6001 907-822-5569 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 A local government, or X A governmental entity (which includes tribal councils and housing authorities); XYes 1.2.2 Attached to this application is formal approval and endorsement for its project by or its board of directors, executive management, or other governing authority. If the No applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessary. (Indicate Yes or No in the box ) XYes 1.2.3 As an applicant, we have administrative and financial management systems and or follow procurement standards that comply with the standards set forth in the grant No agreement. XYes 1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached or grant form. (Any exceptions should be clearly noted and submitted with the No application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant or funds for the benefit of the general public. If no please describe the nature of the XNo project and who will be the primary beneficiaries. AEA13-006 Grant Application Page 2 of 27 7/3//2012 Renewable Energy Fund Round 6 Grant Application A1111111111D EWDENERGYAUTHORITY� The geothermal resource would most likely be developed with a partnership with Ahtna Inc. and the State of Alaska, the primary land owners of the geothermal resources and Copper Valley Electric Association. These partnerships will need to be further developed as the resource is defined and the project planning moves forward. 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) Eastern cropper basin Ueotnermal Assessment 2.2 Project Location — Inc/ude the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. The project will investigate geothermal resources in the Eastern Copper Basin in Central Alaska. Geothermal resources on Ahtna Inc. land and adjacent State lands will be investigated. See attached map. The project is located in the Eastern Copper Basin of Central Alaska. Primarily in the Tazlina and Copper Center area on the east side of the Copper River. See attached maps. The Tazlina anomaly is located on the old Copper Valley School Road near Tazlina Village. 2.2.1 Location of Project — Latitude and longitude, street address, or community name. Latitude and longitude coordinates may be obtained from Google Maps by finding you project's location on the map and then right clicking with the mouse and selecting "What is here? The coordinates will be displayed in the Google search window above the map in a format as follows. 61.195676.-149.898663. If you would like assistance obtaining this information please contact AEA at 907-771-3031. The project will investigate geothermal resources in the Eastern Copper Basin in Central Alaska. Geothermal resources on Ahtna Inc. land and adjacent State lands will be investigated. See attached maps. 2.2.2 Community benefiting — Name(s) of the community or communities that will be the beneficiaries of the project. The project has the potential to benefits all of the region served by the Copper Valley Electric Cooperative including Valdez, Tonsina, Kenny Lake, Copper Center, Tazlina, Glennallen, Tolsona, Mendeltna, Nelchina, Eureka, Gulkana, Gakona and Sourdough. With a short intertie, the project would also benefit Chistochina, Slana, Mentasta, Tok, and Tanacross. If a large resource is developed and an intertie is connected to Sutton, it would also benefit the railbelt, intertie communities as well. AEA13-006 Grant Application Page 3 of 27 7/3//2012 Renewable Energy Fund Round 6 ®_ Grant Application ®ENERGY AUTHORITY 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy X Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre -Construction Construction X Reconnaissance Design and Permitting Feasibility Construction and Commissioning Conceptual Design I J 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. This project will conduct the much delayed follow up on the Wescott report. In 1985 Wescott and Turner study published the results of their geothermal investigations in the Copper Basin during the 1982 field season. They recommended that additional detailed gravity and self -potential data be taken at the confluence of the Tazlina where a high helium anomaly was located. In addition they also recommended self -potential surveys in two other anomaly areas and one area was recommended as a prime drilling target.' We are requesting funds to do further reconnaissance by completing the recommended studies using modern tools and efficiencies as well as compiling other research and exploration that has been done since 1985 in the Eastern Copper Basin 1 Wescott and Turner A Preliminary Report on the Investigation of Geothermal Energy Resource Potential of the Eastern Copper River Basin, Alaska, 1985 page 109-111 AEA13-006 Grant Application Page 4 of 27 7/3//2012 Renewable Energy Fund Round 6 _ Grant Application ! ENERGY AUTHORITY �� 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 project will benefit our area by providing a large scale renewable energy resource that is fairly easy to access and close to existing electric distribution lines. A large scale geothermal resource could lower the cost of electricity to our region and could also provide a large component of the State's energy needs by a renewable resource. Geothermal is a clean environmentally friendly energy source that would fit in well with our region. A large geothermal resource in the Copper Basin could replace dependence on diesel generated power in the winter months and substantially lower the cost of energy in the Copper Basin. If a large source were located and developed to 250 MW in capacity, it would potentially displace a tremendous quantity of diesel fuel annually with related reductions in pollutants. It would also allow an energy source for future growth and economic development of this region. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The total project budget is $695,950. This is requested from the renewable energy fund round 6. 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project's total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested In this application. $$695,950 2.7.2 Cash match to be provided $ 2.7.3 In -kind match to be provided $ 2.7.4 Other grant applications not yet approved $ 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $$695,950 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.6 Total Project Cost (Summary from Cost Worksheet $N/A Reconnaissance Including estimates through construction) 2.7.7 Estimated Direct Financial Benefit (Savings) Potential for 250 MWH geothermal power plant 2.7.8 Other Public Benefit (if you can calculate the benefit In $ Lower power cost, stop terms of dollars please provide that number here and outmigration, economic explain how you calculated that number In your application hope, opportunities AEA13-006 Grant Application Page 5 of 27 7/3//2012 Renewable Energy Fund Round 6 Grant Application J=Elu' 401NUENERGYAUTHORITY SECTION 3 — PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. The project will be managed by Joe Bovee, Land and Resource manager for Ahtna Inc. He will manage the investigation plan, budget, schedule, and deliverables. Overall grant administration will be done by the Copper Valley Economic Development Council team of Jason Hoke and Sandra Wagner. 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Please fill out form provided below. You may add additional rows as needed Start End Milestones Tasks Date Date 1. Project scoping and contractor Month Month solicitation. 1 4 a. Engage Consultant Month Month 1 1 b. Review agency information and identify what agencies have Month Month geothermal information 1 2 c. Copy agency information and Month Month studies 1 2 d. Set up computer base system to store and access data Month Month collected 1 3 e. Evaluate existing data and Month Month identify data gaps 1 4 2. Resource identification and analysis Month Month 1 11 a. Design geothermal resource Month Month studies 1 5 b. Conduct geothermal resource Month Month studies 5 11 3. Land use, permitting, and environmental analysis Month Month 1 8 a. Discussion with land owners and agencies define permitting Month Month requirements 1 8 AEA13-006 Grant Application Page 6 of 27 7/3//2012 Renewable Energy Fund Round 6 ®� Grant Application AMEND ® ENERGY AUTHORITY 4. Preliminary design analysis and N/A not scoped cost 5. Cost of energy and market analysis Month Month 1 11 6. Simple economic analysis Month Month 1 11 7. Final report and recommendations Month Month 6 12 AEA13-006 Grant Application Page 7 of 27 7/3//2012 Renewable Energy Fund Round 6 4WD Grant Application ONE) ENERGY AUTHORrrY v 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. The project will be managed by Joe Bovee, Land and Resource manager for Ahtna Inc. He will manage the investigation plan, budget, schedule, and deliverables. Overall grant administration will be done by the Copper Valley Economic Development Council team of Jason Hoke and Sandra Wagner. Bruce Cain, CPA will also be part of the project team and will add his financial and resource development experience to the project. David Scolman of Scolman and Associates will be the primary geotechnical consultant and his firm has extensive experience working in the Copper Basin. In addition, Gwen Holdmann of the UAF Alaska Center for Energy and Power will provide technical assistance and guidance on background research for geothermal studies in our area. See attached resumes for qualifications of these individuals. 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Please provide an alternative contact person and their contact information. The overall grant administration and reporting will be conducted by Jason Hoke at the Copper Valley Economic Development Association. In addition, Sandra Wagner, administrative assistant will be assisting with this task and she can be contacted at 907- 822-5001 or by email at adminassist@coppervalley.ora. The project investigation plan, schedule, budget and deliverables will be managed by Joe Bovee, Ahtna Inc. land and Resource Manager. He can be contacted at Ahtna Inc. Glennallen Office, P.O. Box 649, Glennallen, AK 99588 phone 907-822-3476 or by email at i bovee @ ahtna-i nc.com. 3.5 Project Risk Discuss potential problems and how you would address them. The project is fairly low risk. This is a reconnaissance and is directed to follow up on a previous 3 year study so the direction of the work has already been researched. We plan to also consult with the Alaska Center for Energy and Power at the University of Alaska and with Scolman and Associates, consulting geotechnical engineers, to guide our investigation in an efficient manner. The experience of this team will guide the investigation plan in an efficient and effective manner. We will also research and compile research on geothermal resources in our area since 1985 and also interpret other exploration data such as oil and gas well drill logs during this time frame. AEA13-006 Grant Application Page 8 of 27 7/3//2012 Renewable Energy Fund Round 6 EW_ Grant Application i - ENERGY AUTHORITY - SECTION 4 — PROJECT DESCRIPTION AND TASKS • The level of Information will vary according to phase(s) of the project you propose to undertake with grant funds. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extentlamount 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. The geothermal resource maps of Alaska show the copper basin and Wrangell Wescott describes the potential of the Wrangell Volcanoes as follows: THE WRANGELL VOLCANOES The Wrangell Mountains on the east side of the Copper River Basin are composed of an elongate massif of Neogene and Quaternary calcalkaline volcanoes. Of these volcanoes, Mount Wrangell alone is still active as shown by increased heat flux at the summit over the last 15 years and historic steam and possibly ash eruptions (Motyka et al, 1980). Since Mt. Wrangell is active it may mark the location of a significant heat source in the upper crust. Also since Mt. Wrangell is roughly equidistant from the two major Alaskan population centers and is situated near existing transportation corridors, it is uniquely situated as a potential major geothermal resource! See attached maps and photos of project area. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The geothermal resource would most likely be developed with a partnership with Ahtna Inc. and the State of Alaska, the primary land owners of the geothermal resources and Copper Valley Electric Association. These partnerships will need to be further developed as the resource is defined and the project planning moves forward. This project proposes to do a reconnaissance of the geothermal resources near the electric utility grid in the Copper basin. If a large geothermal resource is available, it would be much less expensive than diesel and have fewer emissions. It would also have the potential to be less costly and easier to permit than proposed hydro -electric projects The Copper Basin currently is supplied with power from Copper Valley Electric Association. A description of this system is as follows. Z Wescott Pg. 4 and 5. AEA13-006 Grant Application Page 9 of 27 7/3//2012 Renewable Energy Fund Round 6 41111111D Grant Application +i ® ENERGY AUTHORITY System Information CVEA generates electrical power at its two diesel plants, one in Valdez and one in Glennallen, a Cogeneration project in Valdez, and a 12 megawatt hydro facility in Valdez. Power is transferred between the two districts on a 106-mile transmission line through Thompson Pass and the Chugach Mountains. The CVEA Cogeneration Plant is a state-of-the-art facility located at the Petro Star Valdez Refinery. It is a 5.2 megawatt Solar turbine and heat recovery unit that utilizes "light straight run" as its fuel source and provides exhaust heat to the attached crude heater for Petro Star's use in the refining process. The plant was completed in the spring of 2000 and is remotely controlled from the Solomon Gulch hydroelectric facility. Efficiency for this unit is 9.3 kWhs per gallon for production of electricity but the project sells heat at a combined efficiency of 75-80%. The Glennallen Diesel Plant (GDP) is the oldest of CVEA's three thermal plants. It has expanded over the years to meet the needs of CVEA customers. The available generation capacity of the plant is 11 megawatts. The GDP houses a total of seven diesel engines; three Fairbanks Morse 38138 1/8 opposed piston units, two Enterprise DSR 46 units, one Caterpillar 3516B unit, and one EMD unit with a capacity of 2.8 megawatts. The five largest units are remotely controlled from the Solomon Gulch hydroelectric facility. The Valdez Diesel Plant (VDP) was constructed after the 1964 Good Friday Earthquake that caused the city of Valdez to relocate to its present location. The plant houses one Fairbanks Morse 38138 1/8 opposed piston unit, three Enterprise DSR 46 units, and a trailer -mounted Solar Centaur turbine unit. The available generation capacity of this plant is 8.9 megawatts. The three largest units are remotely controlled from the Solomon Gulch hydroelectric facility. Previously owned by the Four Dam Pool Power Agency, CVEA acquired ownership of the Solomon Gulch hydroelectric facility in February 2009. The 12-megawatt Solomon Gulch hydroelectric facility is located on Dayville Road in Valdez. Power is generated by two Fuji Francis water turbines. The facility began providing power to CVEA customers in 1982. CVEA operates its dispatch center from this facility. The plant is manned 24 hours a day, seven days a week. Plant operators are responsible for the operation of up to four generation plants at one time via remote control operations. From the hydro plant, operators can start and stop units in any or all of CVEA's three generation facilities: Glennallen diesel, Valdez diesel, or the cogeneration plant, as well as the hydro project. CVEA's service areas are tied together with a 106-mile, 138-kilovolt transmission line that is owned and operated by CVEA. The transmission line provides a link to all four generating plants. Power can flow from any of the generating facilities to end consumers. Historically, power flows from the Solomon Gulch hydro plant to the Copper River Basin District during the summer months. The transmission line traverses severe terrain between the two districts and parts of it, in the Thompson Pass area, has severe avalanche risk. The transmission line was last damaged by an avalanche in December 2009. AEA13-006 Grant Application Page 10 of 27 7/3//2012 Renewable Energy Fund Round 6 am-) Grant Application i! ENERGYAUTHORfTY^ 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. Current electric generation and diesel fuel usage for 2011 are as follows.3 All of the generation discussed on the attached document is available with seasonal and other operational constraints i.e. water limitations at Solomon Gulch and contractual and economic constraints involving the cogen. You run the cogen at rated load or not at all. Some of the older recips would not be expected to run 8,760 hours in a year. We expect to sell approx 80 million kwhs in 2011. Our adjusted 2011 generation numbers for energy (MWHS)are as follows: Solomon 38,000 GDP 15,000 VDP 5,000 Cogen 29,000 Total 87,000 We expect to burn about 4.5 million gallons of fuel in 2011, LSR and diesel. I don't have emissions information at my fingertips. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The potential energy resource of 250 MWH is larger than the current CVEA system usage. The project would serve a greater market on the rail belt, Upper Tanana and potentially Prince William Sound and Canada. 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. N/A Reconnaissance 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 3 Email Robert Wilkinson to Bruce Cain, re CVEA System Information August 24, 2011. AEA13-006 Grant Application Page 11 of 27 7/3//2012 Renewable Energy Fund Round 6 Grant Application ENERGYAUTHORn-YV� • Basic integration concept • Delivery methods 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The potential Geothermal resource sites that will be investigated are on land owned by the State of Alaska and Ahtna Inc. These land owners have expressed an interest in exploring these resources for development. The Ahtna Land Committee approved by motion the investigation of geothermal resources in the Copper Basin on January 27, 2012. 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 No permits are anticipated for this project. It is a reconnaissance only. Support from the land owners is secured. The Ahtna Land Committee approved by motion the investigation of geothermal resources in the Copper Basin on January 27, 2012. The geothermal resource would most likely be developed with a partnership with Ahtna Inc. and the State of Alaska, the primary land owners of the geothermal resources and Copper Valley Electric Association. These partnerships will need to be further developed as the resource is defined and the project planning moves forward. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: • Threatened or Endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barr These issues will addressed with environmental studies and permitting studies as appropriate if the energy source is identified at the development stage. 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 AEA13-006 Grant Application Page 12 of 27 7/3//2012 Renewable Energy Fund Round 6 Grant Application 6* 0K. ENERGY AUTHORMY r source of their cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer's estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds — loans, capital contributions, in -kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of Dronosed renewable enerav system N/A Reconnaissance 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) N/A Reconnaissance 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 project N/A Reconnaissance 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. r[ease,jut 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. N/A Reconnaissance We think it will provide greater than 250 MWH. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage AEA13-006 Grant Application Page 13 of 27 7/3//2012 Renewable Energy Fund Round 6 ®� Grant Application ■ NEW) ENERGY AUTHORITY a) Basic configuration (if system is part of the Railbelt4 grid, leave this section blank) i. Number of generators/boilers/other SEE SECTION 4.2.1 ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor SEE SECTION 4.2.1 ii. Annual O&M cost for non -labor c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] SEE SECTION 4.2.1 ii. Fuel usage Diesel [gal] SEE SECTION 4.2.1 Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] SEE SECTION 4.2.1 ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity N/A Reconnaissance. (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] N/A Reconnaissance. Could be up to 250 MW or greater. ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) 4 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. AEA13-006 Grant Application Page 14 of 27 7/3//2012 Renewable Energy Fund Round 6 A1111111111DGOOD Grant A lication 001DENERGYAUTHORITY i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] iv. Other Geothermal. a) b) c) d) a) b) c) d) Project Cost Total capital cost of new system SEE SECTION 4.2.1 Development cost Annual O&M cost of new system Annual fuel cost Project Benefits Amount of fuel displaced for i. Electricity Up to 250 MWH generated with geothermal. ii. Heat iii. Transportation Current price of displaced fuel Other economic benefits Alaska public benefits Power Purchase/Sales Price a) Price for power purchase/sale N/A Reconnaissance. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback (years) N/A Reconnaissance. 4.4.5 Proposed Biomass System Information Please address the following items, if know. (For Biomass Projects Only) N/A Geothermal • What woody biomass technology will be installed (cord wood, pellets, chips, briquettes, pucks). AEA13-006 Grant Application Page 15 of 27 7/3//2012 Renewable Energy Fund Round 6 Grant Application J40ONED ENERGY AUTHORITY • Efficiency of the biomass technology. • Thermal or electric application. • Boiler efficiency. • Displaced fuel type and amount. • Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture percentage. • Estimated cords of wood to be used per year, specify whether dry or green and the moisture percentage. • Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the biomass resource? • Inventory data. How much biomass is available on an annual basis and what types (species) are there, if known? SECTION 5— PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non -economic public benefits to Alaskans over the lifetime of the project N/A Reconnaissance. Could provide 250 MWH or greater from renewable geothermal resource. SECTION 6— SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: • Proposed business structure(s) and concepts that may be considered. • How you propose to finance the maintenance and operations for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on -going support for any back-up or existing systems that may be require to continue operation • Commitment to reporting the savings and benefits AEA13-006 Grant Application Page 16 of 27 7/3//2012 Renewable Energy Fund Round 6 ' Grant Application E ENERGY AUTHORITY N/A Reconnaissance. Renewable resource would provide a substantial supply of clean renewable energy for long term future rate stability. 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. We have reviewed prior studies and recommendations. We would like to conduct follow up studies of the significant geothermal resource potential in our region. 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. Ahtna Inc., the main land owner of the study area approved the investigation of geothermal resources in this area by motion at the land committee meeting held January 27, 2012. The geothermal resource would most likely be developed with a partnership with Ahtna Inc. and the State of Alaska, the primary land owners of the geothermal resources and Copper Valley Electric Association. These partnerships will need to be further developed as the resource is defined and the project planning moves forward. SECTION 9 — GRANT BUDGET Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Provide a narrative summary regarding funding sources and your financial commitment to the project. Budgeted funds will be used for project management, review of previous studies, new information gathered since 1985, identify data gaps, design study plan and conduct recommended studies. Total requested $695,950. CVDA direct labor of $39,200 is for contract management and compliance, $8,000 for project supplies and $12,000 for office and communications and 636,750 for subcontracting the research and project management. See breakdown of totals below by task and line item. Consultant budget of $636,750 is made up of $78,750 for project personnel, $3,000 for supplies and $555,000 for technical study subcontracts. Applications should include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (Reconnaissance, Feasibility, Conceptual Design, Design and AEA13-006 Grant Application Page 17 of 27 7/3//2012 Renewable Energy Fund Round 6 Grant Application ANEIDENERGYAUTNORrrY Permitting, and Construction). Please use the tables provided below to detail your proposed project's budget. Be sure to use one table for each phase of your project. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA at 907-771-3031 or by emailing the Grant Administrator, Shawn Calta, at scalfa@aidea.org. Source of Matching Milestone or Task Anticipated Completion RE- Fund Grantee Matching Funds: Cash/in- TOTALS Date Grant Funds Funds kind/Federal Grants/Other state Grants/Other (List milestones based on phase and type of project. $ $ $ See Milestone list below. 1. Project scoping and contractor solicitation. f. Engage Consultant Month 1 13,918 13,918 g. Review agency information and identify what agencies have Month 2 27,838 27,838 geothermal information h. Copy agency information and studies Month 2 6,960 6,960 i. Set up computer base system to store and Month 3 34,798 34,798 access data collected j. Evaluate existing data and identify data gaps Month 4 69,595 69,595 2. Resource identification and analysis $ $ $ c. Design geothermal resource studies Month 5 69,594 69,594 d. Conduct geothermal resource studies Month 11 382,773 382,773 3. Land use, permitting, and environmental analysis $ $ $ b. Discussion with land owners and agencies define permitting Month 8 34,798 34,798 requirements 4. Preliminary design N/A out of analysis and cost scope of this $ $ reconnaissa $ nce 5. Cost of energy and market analysis Month 11 $6,960 $ $6,960 AEA13-006 Grant Application Page 18 of 27 7/3//2012 Renewable Energy Fund Round 6 Grant Application Of � ENERGYAUTHORITY 6. Simple economic analysis 11 $13,918 $ $13,918 7. Final report and recommendations 12 $34,798 $ $34,798 $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $39,200 $ $39,200 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $8 000 $ $8,000 Contractual Services $636,750 $ $636,750 Construction Services $ $ $ Other $12,000 $ $12,000 TOTALS $695,950 $ $695 950 Mllestone or Task Anticipated p Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal-TOTALS Grants/Other State Grants/Other (List milestones based on phase and type of project. See Milestone list below. $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ AEA13-006 Grant Application Page 19 of 27 7/3//2012 Renewable Energy Fund Round 6 �_ Grant Application it � ENERGY AUTHORITY Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: CashAn- klnd/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/ln- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. $ $ $ TOTALS $ $ $ Budget Ca ries: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ AEA13-006 Grant Application Page 20 of 27 7/3//2012 Renewable Energy Fund Round 6 Grant Application � ALASKA ENERGYAUTHORrry Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: CashAn- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. $ $ $ $ $ $ TOTALS $ $ $ Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ Project Milestones that should he addrpsspd in Rudnpt Prnnnaal Reconnaissance Feasibility Design and Permitting Construction 1. Project scoping and 1. Project scoping 1. Project scoping 1. Confirmation that all contractor solicitation. and contractor and contractor design and feasibility 2. Resource solicitation. solicitation for requirements are identification and 2. Detailed energy planning and design complete. analysis resource analysis 2. Completion of bid 3. Land use, permitting, 3. Identification of 2. Permit applications (as documents and environmental land and regulatory needed) 3. Contractor/vendor analysis issues, selection and award 4. Preliminary design 4. Permitting and 3. Final environmental 4. Construction Phases analysis and cost environmental assessment and 5. Cost of energyand analysis mitigation plans 9 P Each project will have market analysis 5. Detailed analysis of (as needed) unique construction 6. Simple economic existing and future 4. Resolution of phases, limitations, analysis energy costs and land use, right of and schedule markets way issues constraints which 7. Final report and 6. Assessment of should be identified recommendations alternatives 5. Permit approvals by the grantee 7. Conceptual design 6. Final system 5. Integration and analysis and cost design testing estimate 7. Engineers cost 6. Decommissioning old 8. Detailed economic estimate systems and financial 8. Updated 7. Final Acceptance, analysis economic and Commissioning and 9 Conceptual financial analysis Start-up AEA13-006 Grant Application Page 21 of 27 7/3//2012 Renewable Energy Fund Round 6 ®� Grant Application ! 4EWD ENERGY AUTHORITY business and 9. Negotiated 8. Operations Reporting operations plans power sales 10. Final report and agreements with recommendations approved rates 10. Final business and operational plan SECTION 10 — AUTHORIZED SIGNERS FORM Community/Grantee Name: Copper Valley Development Association Regular Election is held: Annually at Annual I Date: Meeting Autnorizea urant Signerm: Printed Name Title Term Signature Jason Hoke Executive Director At pleasure of Board I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Gary Hay President 2 yr. See Attached Resolution Grantee Contact Information: Mailing Address: P.O. Box 9 Glennallen, AK 99588 Phone Number: 907-822-5001 Fax Number: AEA13-006 Grant Application Page 22 of 27 7/382012 Renewable Energy Fund Round 6 Grant Application M ENERGY AUTHORITY 907-822-5569 E-mail Address: jhoke@coppervalley.org Federal Tax ID #: 92-0134864 Please submit an updated form whenever there is a change to the above information. AEA13-006 Grant Application Page 23 of 27 7/3//2012 Renewable Energy Fund Round 6 M. Grant Application s ENERGY AUTHORITY SECTION 11 — ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant's Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. Applicants are asked to separate resumes submitted with applications, if the individuals do not want their resumes posted. B. Letters demonstrating local support per application form Section 8. C. An electronic version of the entire application on CD per RFA Section 1.7. D. Governing Body Resolution or other formal action taken by the applicant's governing body or management per RFA Section 1.4 that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. - Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. CERTIFICATION Authnrizpd Prant Sinner/sl- The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Jason Hoke Signature Title Executive Director Date September 24, 2012 AEA13-006 Grant Application Page 24 of 27 7/3//2012 Renewable Energy Fund Round 6 Grant Application f=a' ENERGY AUTHORITY Go. g f hwmhr Seer Copper Valley Development Association Eastern Copper Basin Geothermal Resource Assessment Project Project Location Map ILA AEA13-006 Grant Application Page 25 of 27 7/3//2012 L 1141., io . fPrivate irMina Native Allotmeni State of Alaska Renewable Energy Fund Round 6 Grant Application GONE--) ENERGY AUTHORITY Geothermal Areas 1• 1i . �� sr se a � r yr1� iy111L--1�-t — II I..0004Naoiw C004N001E 04N002 x� - � • .v '. 'e 1. .r za .. x .s � r I I r.' a V 5 ,•' 7 'h .. .., 14 ii - .fir le . fh r5 le '! :r 1e CO&IV 71E C003Np02B - •/ Ahtna ® Anomaly L ,.�' C00 f:' _ + Ti I C 2N001�1a1V007E Milepost �. Y, fry I ' .. , AEA13-006 Grant Application Page 27 of 27 7/3//2012 Copper Valley Development Association, Inc. P.O. Box 9, Glennallen, AK 99588 * 907-822-5001 phone * 888-256-5569 fax www.coppervalley.org * info@coppervalley.org Whereas, Copper Valley Development Association proposes funding in the amount of $695,950.00 and commits to provide the matching resources for project at the match amounts indicated in the funding application for an Eastern Copper Basin Geothermal Resource Assessment; Whereas this project would conduct much delayed follow up on the existing 1985 Wescott and Turner study publishing the results of their geothermal investigations in the Copper Basin during the 1982 field season; Whereas recommendations from said study were that additional detailed gravity and self potential data be taken at the confluence of the Tazlina (where a high helium anomaly was located) and, self potential surveys be conducted in two other anomaly areas (one area identified as a prime drilling target); Whereas funds to do further reconnaissance by completing the recommended studies using modern tools and efficiencies as well as compiling other research and exploration accomplished since 1985 in the Eastern Copper Basin is essential to the development of geothermal in this region; Therefore be it resolved, that the Copper Valley Development Association, through its board of directors, hereby endorses the request for funding as proposed above. Be it further resolved, that the Copper Valley Development Association, through its board of directors, hereby authorizes the Jason Hoke as the individual who has authority to sign the application and, has the authority to commit the organization to the obligations under the grant. Be it further resolved, that the Copper Valley Development Association, through its board of directors, hereby authorizes provides as point of contact to represent the applicant for purposes of this application as Jason Hoke, Executive Director, P.O. Box 9, Glennallen, Alaska 99588 907-822-5001. Be it further resolved, that the Copper Valley Development Association, through its board of directors, hereby authorizes and certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. Page I of 2 qsad this day, T-&zq )L y President ARDOR Alaska Regkmal0evabpment Organmallons Page 2 of 2 .' I 12