HomeMy WebLinkAboutRenewable Energy Fund Round Grant Application - Cold BayRenewable Energy Fund Round 6 A I �Q't
Grant Application -
ENERGY AUTHORITY
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round 6 of the Renewable Energy Fund. An electronic version of the Request for
Applications (RFA) and this form are available online at:
http://www.akenergyauthority.ora/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:
O 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 Pagel of 20 7/3/2011
Renewable Energy Fund Round 6 A I nr�
Grant Application ENERGY AUTHORrrY~`f
SECTION 1 — APPLICANT INFORMATION
Name (Name of utility, lPP, or government entity submitting proposal)
G&K Electric Utility
Type of Entity: Independent Producer Fiscal Year End
Tax ID # Tax Status: -For-profit or non- rofit check one
Mailing Address
Physical Address
P.O. Box 117. Cold Bay, AK 99571
1 Airport Way, Cold Bay, AK 99571
Telephone 907-
Fax
Email
532-2407
907-532-2513
GFergu9580@aol.com
1.1 APPLICANT POINT OF CONTACT 1 GRANTS MANAGER
Name
Title
Ernie Weiss
Natural Resource Director
Aleutians East Borough
Mailing Address
3380 C Street, Suite 205
Anchorage, AK. 99503
Telephone
Fax
Email
907-274-7557
907-276-7569
eweiss@aeboro.org
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate If you do not to meet the minimum applicant requirements, your
application will be rejected
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
X
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
1.2.2 Attached to this application is formal approval and endorsement for its project by
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 )
Yes
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.
Yes
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
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Grant Application }WMERGY AUMORMY
No
application.)
YeS
1.2.5 We intend to own and operate any project that may be constructed with grant
or No
funds for the benefit of the general public. If no please describe the nature of
the project and who will be the primary beneficiaries.
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)
Goia tray vvaste neat Recovery Project
2.2 Project Location —
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project in the subsections below.
2.2.1 Location of Project — Latitude and longitude, street address, or community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project's location on the map
and then right clicking with the mouse and selecting `What is here? The coordinates will be displayed in the Google
search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance obtaining
this information please contact AEA at 907-771-3031.
Cola Bay is iocatea on the H1asKa remnsula, approximately 634 miles southwest of Anchorage and 180
miles northeast of Unalaska.
N 550 12' 10.8" W 1620 42' 31.3"
2.2.2 Community benefiting — Name(s) of the community or communities that will be the
beneficiaries of the project.
Cola tray.
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
Geothermal, including Heat Pumps
Small Natural Gas
X
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
X
Feasibility
Construction and Commissioning
X
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
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Cold Bay requests funding for this waste heat recovery study as a step towards supplementing the high
cost of diesel generators currently in use. The waste heat recovery study and will satisfy Phases I,
Reconnaissance and Phase H, Feasibility, and the study will result in a feasibility report on the technical,
economic, financial and operational viability and guidelines of implementing the next three phases of
a waste heat recovery system. The grant would be managed by the Aleutians East Borough and
calls for the solicitation of a contractor to perform the analysis and a community meeting with
the contractor for presentation, review and discussion of the results.
Participants in the project will include:
1. G&K Electric Utility
2. Aleutians East Borough who will provide overall project management.
3. A contracted firm who will provide civil and electrical system engineering.
4.
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.)
This project will reduce fuel and the overall energy costs to the Cold Bay community.
Other project benefits will include:
• Reduced dependence on diesel fuel and the expense involved in its transportation.
• Save on current operation and maintenance costs by less time from using diesel
generators
• Contribute to the reduction of air pollution and affects on climate change.
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 estimated Phase I Reconnaissance cost of this project is $53,055 Phase lI Feasibility is
$61,710. The project cost total is $114,765. Aleutians East Borough staff time will also be
contributed as in -kind to this project for project administration and management ($5,000). The
total requested is $109,765.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request ana your projects total costs and benefits below
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application.
$109,765
2.7.2 Cash match to be provided
$0.00
2.7.3 In -kind match to be provided
$5,000.00
2.7.4 Other grant applications not yet approved
$0.00
2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3)
$114,765
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Project Costs & Benefits
(Summary of total project costs including work to agate and future cost estimates to get to a fully
operational project)
2.7.6 Total Project Cost (Summary from Cost Worksheet
$114,765
including estimates through construction)
2.7.7 Estimated Direct Financial Benefit (Savings)
$138,477
2.7.8 Other Public Benefit (If you can calculate the benefit in
$
terms of dollars please provide that number here and
explain how you calculated that number in your application
(Section 6.)
SECTION 3 — PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a
resume and references for the manager(s). If the applicant does not have a project manager
indicate how you intend to solicit project management support. If the applicant expects project
management assistance from AEA or another government entity, state that in this section.
Gary Ferguson, G&K Electrical owner, will provide overall project management and
administration. G&K Electrical will also rely on Aleutians East Borough staff and the City of
Cold Bay for project support. AEB staff maintains routine communications with the City of
Cold Bay on all aspects of community development and is currently assisting G&K Electrical
with this application. This close contact and coordination will continue in the development of the
Cold Bay Electric Grid Connect Wind Project with Electric Thermal Heat Recovery. An contracted
firm will also provide project management assistance upon grant award.
Aleutian East Borough Project Management staff includes:
• Ernie Weiss, Natural Resource Director
907-274-7557, eweiss@aeboro.org
• Anne Bailey, Community Development Coordinator
907-274-7580, abailey@aeboro.org
• Roxann Newman, Finance Director.
907-497-2588, rnewman(&,,aeboro.org
Attached are their resumes.
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.
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Phase 1 Reconnaissance
Start
End
Milestones
Tasks
Date
Date
Project Scoping and Community
Project Management
Solicitation
MC Team will travel to community for site
assessment and to visit the school to
introduce the project to
Staff/Students/Community and solicit
participation (this task will be completed
concurrently with the Preliminary Site Visit
funded in the next milestone — no additional
funding added for this milestone in budget)
8/1/13
911113
Resource Identification and
Project Management
Analysis
Preliminary site visit
Review of existing stud
811113
1 9/1113
Land use, permitting, and
Project Management
environmental analysis
Determine site ownership issues, if any
Contact agencies for preliminary approval:
SHPO, DOD, ACMP
Document, if any, community concerns at
chosen location
8/1113
10/1113
Preliminary design analysis and
Project Management
cost
Revise existing study to reflect new
technological advances
9/15/1
10/1511
3
3
Cost of energy and market
Project Management
analysis
Assess cost of energy for current and
10/151
12/15/1
predicted usage * Utilize grant RE40680
13
3
Simple economic analysis
Project Management
Compare current vs. predicted price of
10/151
12/15/1
energy
13
3
Final report and recommendations
Project Management
Prepare final Heat Recovery report and
Present to Utility /Community along with
12/151
options for development.
13
1 /31 /14
Phase 2 Feasibility Milestones
Project scoping and community
Identify potential community building that
solicitation
would benefit from waste heat.
811/13
9/1/13
Detailed energy resource analysis
Project Management
Evaluate existing diesel power plant,
electrical distribution system,
Evaluate condition and acceptability of
existing controls and switchgear for
compatibility with a heat recovery system.
Utilize grant RE40680
911/13 1
11/1/13
Identification of land and
Project Management
regulatory issues
Address site ownership and regulatory
issues, if any
811113
1011 /13
Permitting and environmental
Project Management
analysis
Contact USFWS, FAA, DOD, ACMP, and
SHPO for approval of conceptual design
Assess and document any issues with
wetlands or telecommunications, including
mitigation efforts planned if necessary
911/13
2/28/14
Detailed analysis of existing and
Project Management
future energy costs and markets
I Review historical power plant and electrical
1111/1
1/13/14
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i
consumption data
Identify building candidates for heat recovery
Identify planned or proposed future growth
load for community
Assessment of Alternatives
Project Management
Provide utility / community with clear picture
of options available to them for waste heat
11/1/1
recover — solicit input into decision
3
1/31/14
Conceptual design analysis and
Project Management
cost estimate
Include design of heat recovery system
utilizing engine jacket water heat combined
with potential exhaust manifold and exhaust
stack. * Utilize grant RE40680
911/13
11/1/13
Detailed economic and financial
Project Management
analysis
Calculate rate for electricity that displaces
diesel through the heat recovery system
2/1/14
3/15/14
Conceptual business and
Project Management
operations plans
Business and Operations Plan developed for
heat recovery system with participation from
community. Meet with utility board to discuss
and formalize.
2/1/14
3/15114
Final report and recommendations
Project Management
Community Meeting to Present Plan and
Announce Training Opportunities
3/1611
Final Grant Report to AEA
4
5/16/14
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.
u&n mecmcai wilt oe responsible for implementation and successful completion of the project.
G&K will confer routinely with the Aleutians East Borough and the City of Cold Bay while
simultaneously working with qualified consultants, and general contractors to develop and
complete the project.
G&K will follow State policies as far as selecting firms and purchasing equipment, supplies, and
materials. Selection of firms and general contractors will be based on the type and amount of
past wind project experience of the firm as well as individual work experience, experience and
familiarity in the Aleutians East Borough region, and project cost.
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.
tiary tierguson of (j&& t iectrical will coordinate overall project development. The Aleutians
East Borough will assist in this coordination by acting as the project liaison among all parties.
AEB staff will help coordinate all project team communications, meetings, and disseminate
information on a routine basis. The AEB will be responsible for on a routine basis. The AEB will be responsible for all periodic progress reports toprogress reports to
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the AEA.
3.5 Project Risk
Discuss potential problems and how you would address them.
There are potential problems in project logistics and construction in remote areas such as
Aleutians East Borough communities. Adverse weather conditions can also cause project delays.
Aleutians East Borough staff has much experience in setting up and managing community
development projects in AEB communities. Similarly, local labor has much experience, savvy,
and know-how to get the job done in adverse conditions such as poor weather. Good team
planning and reliance on local knowledge about community conditions help reduce the risk in
development projects in remote areas.
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 exhaust gas from an internal combustion diesel engine carries away about 30% of the heat of
combustion. The energy available in the exit stream of energy conversion devices largely goes as
waste, if not utilized properly.
Heat recovery may use one or all of the diesel generator's heat sources including the exhaust
stack, jacket water, and charge air increasing the overall thermal efficiency. Heat recovery using
jacket water heat and/or charge air heat directly for heating is a mature and proven technology.
Over a quarter of Alaska rural village diesel generators have already been equipped with jacket
water heat recovery systems. Charge air heat has been recovered for heating in a select number of
communities.
The newly developed super -heat recovery system consists of a conventional combined diesel
jacket water cooling system, a marine exhaust manifold and a charge air exchanger that
maximizes the exhaust gas AND heat recovery.
This system increases the electric generation capability and efficiency by reducing the overall
diesel plant parasitic loads to ran and operate cooling fans and pumps.
Installation of monitored super -heat recovery systems from both traditional water jacket systems
and new marine exhaust manifolds heat recovery systems can increase the fuel conversion.
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efficiency of diesel power houses by another 20% - 35%.
The deployment of data acquisition and remote monitoring capabilities maximizes the heat
recovery system operational efficiency.
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.
G&K is the electric utility in Cold Bay. It was started by owner Gary Ferguson, who was hired
by the Department of Military Affairs in 1984 to build a power plant to supply emergency power
to the U.S. Air Force Base in Cold Bay. During this process Mr. Ferguson was asked by the State
to rebuild the electric utility for the community of Cold Bay. Over the next three years the electric
utility was completely rebuilt and G&K began operation in 1987. To meet the U.S. Air Force's
power requirements, G&K had to produce guaranteed uninterrupted power by maintaining a
spinning reserve of 100 kW, maintaining voltage within 5% and frequency within 1%, and be
able to start up dead generators to running capacity in five seconds or less. Because of these
requirements, G&K's power utility has never experienced an unexpected power outage. A drop in
power only occurs during scheduled maintenance. G&K continues to supply firm power to the
critical loads of the Air Force's Long Range Radar Site and the FAA's navigational equipment.
G&K operates the Cold Bay generation facility under RCC certificate #88 through the Regulatory
Commission of Alaska (RCA).
G&K provides power to approximately 61 residential, 53 commercial and 1 industrial customer
(FAA) in Cold Bay. Governmental customers are categorized as commercial customers. The
annual community power consumption (4-year Average) is approximately 2,600,000 kWh per
year, which includes only power sold to customers and does not include power that is used to
operate the power plant or power lost in distribution. In the past, when the military had a large
presence at the airport, the power consumption of Cold Bay was much higher than it is today,
with peak loads of 800 kW. In recent years the community power load has decreased because of
decreased military operations and a decrease in population. The four year average peak load is
now 328 kW.
The G&K generation system includes two Caterpillar 3512 diesel engines, 1200 RPM units,
directly coupled to Kato 2400 V , 0.8 PF 3-phase generators rated at 650 kW each; and one
Caterpillar 3512 diesel engine, 1200 RPM directly coupled to a Kato 2400 V, 0.8 PF generator
rated at 850 kW. All generators feed into a Brown Bovari Switch gear rated at 1,200-amps. The
Switch gear is computer controlled and is fully automatic on demand. Typically the utility runs
one generator at a time and cycles through each generator every 720 hours. The average operating
efficiency of the generators over the last 12 months, from Dec 2008 to Nov 2009, is 13.53
kWh/gallon. The utility has reached an efficiency of up to 14 kWh/gallon, at times throughout the
year.
The generators were installed in 1987 and now have between 67,000 and 79,000 hours of
operation on them. The generators are well maintained and each one has been rebuilt at least
twice. G&K expects them to have a usable life of 150,000 hours.
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G&K installed a heat recovery system designed to sell waste heat to the community when the
power plant was built in 1987. It consists of a manifold cooling system with a tube and shell heat
exchanger. A small fraction of the waste heat is used to heat all of G&K's buildings; these
buildings have a combined size of approximately 10,000 square feet. Currently, no waste heat is
used by the rest of the community.
4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
The Cold Bay Power Plant produces electrical energy by burning diesel fuel in engine -driven
generators. This satisfies a community power consumption of approximately 2,600,000 kWh per
year, (a four-year average). This consumption does not include power that is used to operate the
power plant, or power lost in distribution.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
uoin tray is an isolated community located on the Alaska Peninsula, approximately 634 miles southwest
of Anchorage and 180 miles northeast of Unalaska. It is accessible only by air, ferry (twice per month in
the summer months), and barge transportation. The community experiences long and cold winter nights.
Severe winter storms are continuous.
Existing power consumption is approximately 2,600,000 kWh per year. Reliable power service
is essential for the Cold Bay Airport (a paved 10,415 foot runway with a 6,235 foot crosswind
runway) and all the supporting government offices/buildings (FAA, NOAA/Weather Service,
U.S. Coast Guard, DOT&PF, and Aleutians East Borough) and commercial enterprises such as
Pen Air, Evergreen Aviation, Frosty Fuels, and Aleutians Services. Other community users
include the U.S. Fish and Wildlife Service, U.S. Air Force facilities, two lodges, three guide
services, a store and bar, health clinic, school, City of Cold Bay buildings and facilities, post
office, and 36 residences. The use of waste heat will ultimately lower monthly electricity costs
which keep increasing due to the reliance of fuel for power generation.
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
• A description of renewable energy technology specific to project location
• Optimum installed capacity
• Anticipated capacity factor
• Anticipated annual generation
• Anticipated barriers
• Basic integration concept
•• Delivery
Lola tsay will use the waste treat Kecovery Study to determine the appropriate system and
system desip.
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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.
Project will use existing Right of Way and easements. No potential land use problems apply.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
• List of applicable permits
• Anticipated permitting timeline
• Identify and discussion of potential barriers
The waste heat portion of this grant is shovel ready except for one Right -of -Way permit. G&K
states this ROW will be easily obtainable.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
• Threatened or Endangered species
• Habitat issues
• Wetlands and other protected areas
• Archaeological and historical resources
• Land development constraints
• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and discuss other potential barriers
i�U yVwiiucu caxviiuiuiltaILM prOoiems apply.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants records or analysis, industry standards,
consultant or manufacturer's estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
• Total anticipated project cost, and cost for this phase
• Requested grant funding
• Applicant matching funds — loans, capital contributions, in -kind
• Identification of other funding sources
• Projected capital cost of proposed renewable energy system
• _ Projected development cost of proposed renewable energy system
This study phase will cost $114,765. Detailed project development costs will be developed by
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MarshCreek, LLC as a result of the feasibility study. Cold Bay expects to follow the Alaska
Energy Plans approach to reducing Project Cost Capitol based on the benefit to cost outcome
derived by the energy plan highlighted in yellow.
Tabu 3-2. Pollry Opllom for Ruml Energy Plan — Economic Measurement Considerations
Reduce Cost of Capital
Provide garemmentfundmg of wind rMLiroe development where positive economic berreft are likely
Attmatives
Benenw
Coats.
Risks
Mai measure(sl to use
A &G a 1 0 Net Present Value Analysts,
Focus on opportunities that
Requires cash floweshmates
Risk of under -investing
rear discount rate = 5%, time horizon =
are likely to deliver benefits
relative to longer time horizon
15 years
sooner
B BIG a 10, Net Present Value Analysis,
Focus on opportunities thal
Requires cash fbwesbmates
Riskof over-inves rig relative
real discount rate = 5%, tome horizon =
may deliver benefits over the
to shorter tiros horizon
30 years
long term
C. Incorporate qualitative risks axplicltly
Allows explicit risk We -aft
Requires relative risk
qualiatkre relative risk
assessment metrics
assessment may be biased.
Diesel Engine Heat Recovery
Heat Recovery System Installed? Y
Is it working now? Y
EILDGs connected and working:
Powerhouse Only
VaWe
Water Jacket 32,309 gal $226,753
Stadt Heat 0 gal $0
Capital cost SM,714
Annual ID $71,261
Annual OM $17,014
Total Annual costs $69X6
HeatCoet $24.73 $1MMetu
Savings
$138,477
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.)
AEA estimated the O & M costs for a typical Diesel Engine Heat Recovery system in Cold Bay
to be $17,014. A more accurate estimate of Diesel Engine Heat Recovery O & M costs will be
developed by the Heat Recovery Study. Combining heat recovery into the diesel system will
allow the Utility to keep energy pricing affordable.
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)Icustomer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant -funded project
ine waste treat recovery Ntuay will identity power/purchase sale information accurately.
4.4.4 Project Cost Worksheet
the cost worksheet form which provides summary information that will be considered
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Grant Application p 0W.-D ENERGY AUn IORMY
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 Greater than 65%
Unit depends on project type (e g. windspeed, hydropower output. biomass fuel)
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank)
i Number of generatorslboilerslother 2 Diesel Generators
ii Rated capacity of generators/boilers/other #1 Caterpillar 3512 650kW
#2 Caterpillar 3512 650kW
iii Generator/boilerslother type None
iv Age of generators/boilers/other Not available
v Efficiency of generators/boilers/other 13.53 kWh/gal.
b) Annual O&M cast (if system is part of the Railbelt grid, leave this section blank)
i_ Annual O&M cost for labor $577,850
ii. Annual O&M cost for non -labor $53,230
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] 2,600,000
ii Fuelusage
Diesel [gal] 215,392
Other
iii Peak Load 607 kW
iv Average Load 328 kW
v Minimum Load
vi Efficiency
vii Future trends
d)
Annual heating fuel usage (fill in as applicable)
i Diesel [gal or MMBtu] Est. 54,119 gallons/year
u Electricity [kWh)
iii Propane [gal or MMBtu]
iv Coal [tons or MMBtu]
1 The Rallbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
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Renewable Energy Fund Round 6 : ,•� n Qr�
Grant Application TERGY AUTHORTY_
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 NA Reconnaissance and Feasibility Study
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
b) Proposed annual electricity or heat production (fill in as applicable)
i Electricity [kWh]
ii Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i Propane [gal or MMBtuI
ii Goal [tons or MMBtu]
iii Wood [cords, green tons, dry tons]
iv Other
Project Cost
a) Total capital cost of new system NA Reconnaissance and Feasibility Study
b) Development cost
c) Annual O&M cost of new system
d) Annual fuel cost
Project Benefits
a) Amount of fuel displaced for
Electricity NA Reconnaissance and Feasibility Study
a� Heat
iii. Transportation
b) Current price of displaced fuel
c) Other economic benefits
d) Alaska public benefits
Power PurchaselSales Price
a) Price for power purchase/sale NA Reconnaissance and Feasibility Study
Project Analysis
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Renewable Energy Fund Round 6 -� n
Grant Application ��, ,UT o -
a) Basic Economic Analysis
Project benefit/cost ratio NA Reconnaissance and Feasibility Study
Payback (vears)
4.4.5 Proposed Biomass System Information
Please address the following items, if know. (For Biomass Projects Only)
• What woody biomass technology will be installed (cord wood, pellets, chips, briquettes,
pucks).
Efficiency of the biomass technology.
b 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 Me economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefif 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 a 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 protect
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Grant Application ' tNERGY AUTHORITY
According to the AEP study, Cold Bay has the potential to save $138,477 for heat recovery
annually. There have been no Proposed Power Purchase Agreement price, RCA tariff, or cost
based rates for the proposed waste heat recovery system developed at this time.
The people of Cold Bay would like to be less dependent on the variable price of diesel fuel,
lessen the environmental risks of fuel transport and storage hazards by requiring less diesel fuel
to power their community.
SECTION I- SUSTAINABILITY
Discuss your plan for operating the completed protect 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 protect
• 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
G&K Electric Utility currently operates the power plant and electrical distribution system in Cold
Bay. The Utility will incorporate an O & M surcharge into its rate structure to recoup the costs of
operating and maintaining the renewable energy infrastructure.
G&K Electric Utility already utilizes waste heat recovery to heat the power plant and ancillary
buildings. Minimal training will be needed. There are no operational issues anticipated.
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 prefect to date and identify other grants
that may have been previously awarded for this protect and the degree you have been able to
meet the requirements of previous grants
The Aleutians East Borough was awarded a $25,000 grant from the Alaska Energy Authority on
July 27, 2009 to perform a renewable energy resource feasibility study for the communities of
Cold Bay, False Pass, and Nelson Lagoon (the AEB contributed $5,000 cash and $10,000 in -kind
to the project). The study project was completed on May 18, 2010 and submitted to the AEA on
June 2, 2010. The study contains an analysis of existing energy power systems, potential
renewable energy resources, and recommendations for renewable energy projects in the three
communities. The study provides the basis for much of the information contained in this grant.
G&K and the Aleutians East Borough are currently receiving assistance from the Aleutian
Pribilof Island Association and Marsh Creek, Inc. to follow-up on the project recommendations
contained in the completed Renewable Energy Feasibility Study as well as the Report and
Conceptual Design performed in 1991 by Frank Moolin & Associates. Specifically, we are
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Renewable Energy Fund Round 6 n �_�i-y-
Grant Application AUTHORITY
refining the type of equipment specified in the plan as well as developing work plans for project
implementation. This work also provides the basis for much of the information in this
application. With this additional work to the feasibility study, G&K will be ready to proceed
immediately.
SECTION 8— LOCAL SUPORT
Discuss what local support or possible opposition there may bp, regarding your protect Include
letters of support from the community that would benefit from this project
The Cold Bay City Council and the Aleutians East Borough Assembly both passed resolutions in
public meetings in support of G&K's Renewable Energy Fund Round IV Grant, entitled, "Cold
Bay Electric Grid Connect Wind Project with Electric Thermal Heat Recovery". Please see the enclosed
resolutions.
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.
The expected cost of the feasibility study is $114,765. The Grant Budget Form is attached.
Applications should include a separate worksheet for each project phase that was identified in
section 2.3.2 of this application, (Reconnaissance, Feasibility, Conceptual Design, Design and
Permitting, and Construction). Please use the tables provided below to detail your proposed
project's budget. Be sure to use one table for each phase of your project.
If you have any question regarding how to prepare these tables or if you need assistance preparing the
application please feel free to contact AEA at 907-771-3031 or by emailing the Grant Administrator,
Shawn Calfa, atscalfa@aidea.org.
Source of
Matching
Reconnaissance Milestone
Anticipated
Completion
RE- Fund
Grantee
Matching
Funds.
Cashlln-
TOTALS
or Task
Date
Grant Funds
Funds
kind/Federal
Grants/Other
State
GrantslOthei
Project Scoping and
CommunitySolicitation
9/1/2013
$6,250
$295
In Kind
$6,545
Resource Identification and
9/1/2013
$8,570
$295
In Kind
$8 865
Analysis
Land use, permitting, and
environmental analysis
10/1/2013
$10,000
$295
In Kind
$10,295
Preliminary design analysis
10115/2013
$5,000
$295
In Kind
$5,295
and cost
Cost of energyand market
12 11512013
$6 250
$295
In Kind
$6.545
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Renewable Energy Fund Round 6
Grant Application
Simple economic
Final report and
recommendations
TOTALS
Travel & Per Diem
Materials &
Construction Services
Other
12/15/2013
1/31/2014 1 $11,620
750
A 1 A_il? ty
if OW...: EN EFiGY AUTHOR TY
$295 In Kind $3,595
$295 In Kind $11,915
Source of
Matching
Feasibility Milestone or Task
Anticipated
Completion
RE- Fund
Grantee
Matching
Funds:
Cashlln-
TOTALS
Date
Grant Funds
Funds
kind/Federal
Grants/Other
State
Grants/Other
Project scoping and
community,
solicitation
91112013
$1980
$295
In Kind
$2,275
Detailed energy resource
analysis
11/1/2013
$4,125
$295
In Kind
$4,420
Identification of land and
10/1/2013
$12,500
$295
In Kind
$12,795
re ulato issues
Permitting and environmental
analysis
2/28/2014
$3,300
$295
In Kind
$3,595
Detailed analysis of existing
In Kind
and future energy costs and
1/31/2014
$4,125
$295
$4,420
markets
Assessment of Alternatives
1/31/2014
$7,500
$295
In Kind
$7,795
Conceptual design analysis
and cost estimate
11/1/2013
$10,000
$295
In Kind
$10,295
Detailed economic and
financial analysis
311512014
$5,000
$295
In Kind
$5,295
Conceptual business and
o erations plans
3/15/2014
$7,745
$295
In Kind
$8,040
Final report and
recommendations
5/16/2014
$2,500
$280
in Kind
$2 780
TOTALS
$58,775
$2,935
$61,710
Budget Categories.
Direct Labor & Benefits
$55,155
$2,935
$58,090
Travel & Per Diem
$3,620
$
$3,620
Equipment
$
$
$
Materials & Supplies
$
$
$
Contractual Services
$
$
$
Construction Services
$
$
$
Other
$
$
$
TOTALS
$58,775
$2,935
$61,710
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Renewable Energy Fund Round G
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a1111111D ENERGY AUTHORMY
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 S.
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. CER nFICATION
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
Gary Ferguson
Signature•'��
Title
President
Date
9/24/2012
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Renewable Energy Fund Round 6 AM
Grant Application � ENERGY AMORrrY
SECTION 10 — AUTHORIZED SIGNERS FORM
Name:
Regular Election is held: N/A I Date:
Authorized Grant Sioner(s):
Printed Name
Title
Term
Signature
Gary Ferguson
President
n/a
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Grantee Contact Information:
Mailing Address:
PO Box 117, Cold Bay AK, 99571
Phone Number:
907-532-2407
Fax Number:
E-mail Address:
GFergu9580@aol.com
Federal Tax ID #:
Please submit an updated form whenever there is a change to the above information.
AEAI S-006 Grant Application Page 20 of 21 7/3//2012
Fkiii iiw •'d#rf� tom# • jAla �
RESOLUTION 13-03
A RESOLUTION BY THE ALEUTIANS EAST BOROUGH ASSEMBLY SUPPORTING THE
SUBMITTAL OF AN APPLICATION FROM G & K ELECTRIC UTI LITY TO THE ALASKA
ENERGY AUTHORITY FOR A RENEWABLE ENERGY ROUND VI GRANT.
WHEREAS, the Aleutians East Borough provides assistance to six communities in the district
which includes Akutan, Cold Bay, False Pass, King Cove, Nelson Lagoon and Sand Point; and
WHEREAS, the Aleutians East Borough seeks to implement long term energy goals that result
in sustainable and measurable energy savings to Aleutian East Borough Communities; and,
WHEREAS, Cold Bay, Alaska is a community with an potential source of recoverable heat
energy; and
WHEREAS, the Aleutians East Borough is working with the community of Cold Bay and G &
K Electric Utility to implement the renewable energy project recommendations contained in the
2010 AEB Renewable Energy Assessment.
NOW THEREFORE BE IT RESOLVED, the Aleutians East Borough Assembly supports the
submittal of the Renewable Energy grant for the Recoverable Heat Energy Project by the G & K
Electric Utility in Cold Bay, Alaska, for consideration by the Alaska Energy Authority in order
to reduce dependence on diesel fuel resulting in a sustained and measurable energy savings; and
BE IT FURTHER RESOLVED that the Aleutians East Borough agrees to provide project
management and grant administration services valued at a minimum of $2500.00 through
completion of the project as an in -kind contribution to the project; and
BE IT FURTHER RESOLVED that the Aleutians East Borough Community Development
Coordinator is designated as the Borough point of contact for this grant, and is authorized to sign
grant reports and other documents related to the grant as needed to fulfill the Borough
commitment to provide project management and grant administration for the project.
PASSED AND APPROVED by the Aleutians East Borough on this 28a' day of August, 2012.
•� 4
Stanley Ma ayor ATTEST:
Tina An erson, Clerk
(