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HomeMy WebLinkAboutAEA Grant - Excursion Inlet HydroRenewable Energy Fund Round VI Grant Application AEA 13-006 Haines Borough Excursion Inlet Hydro Project Feasibility Renewable Energy Fund Round 6 ,) �" Alcl�► - Grant Application I ®ENERGYAUTHORITY SECTION 1 —APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Haines Borough Type of Entity: Home Rule Borough (Municipality) Fiscal Year End Tax ID # 47-0888706 Tax Status: —For-profit or ✓ non-profit ( check one) Mailing Address Physical Address PO Box 1209 103 Third Avenue South Haines, AK 99827 Telephone Fax Email 907-766-2231 907-766-2716 dculbeck@hanies.ak.us 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Title Darsie Cuubeck Assistant to the Manager Mailing Address PO Box 1209 Haines, AK 99827 Telephone Fax Email 907-766-2231 907-766-2716 dculbeck@haines.ak.us Ext. 60 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or X A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2 Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 09/24/2012 Renewable Energy Fund Round 6 ®�Q�� Grant Application ®® ENERGYAUTHORrrY SECTION 2 — PROJECT SUMMARY Overview The Haines Borough encompasses an area of approximately 2,620 square miles, or almost 1.7 million acres. It is bounded on the North and East by Canada and the Skagway Borough, to the South by the City and Borough of Juneau and Icy Straits, and to the West by Glacier Bay National Park and Preserve. Neatly 120 miles long and 80 miles at its widest, the Borough is the northern boundary of the Southeast Alaska region (see Figure 1). In 2002 Borough residents voted to consolidate the first-class City of Haines and the third- class Haines Borough into a home rule borough, adding area wide planning, platting, and land use regulation to the responsibilities of the local government. Excursion Inlet (see Figure 2) is a community located in the extreme SW region of the borough. It is not an organized community, but has been home to a significant fish processing industry for many years. AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 09/24/2012 Renewable Energy Fund Round 6 / �. A LA. KA_� Grant Application W WL—' tNtKUY AU I ML)hl I7 A large part of the economic base of the Haines Borough is the fishery in the region, valued in the round at $60,000,000 annually. The bulk of the Haines gillnetting fleet -62 permits- sells to Ocean Beauty Seafoods. The facility is currently operating under the license of Ocean Beauty Seafoods, Inc. In FY12 the Haines Borough received $121,700 in raw fish tax, an estimated 95% of that generated in Excursion Inlet. Overthe previous decade, FY03-12, the borough received $1,541,000 in raw fish tax. In addition to the seafood industry, the community of Excursion Inlet includes 119 parcels of land owned by 95 unique owners. Figure 2 — Excursion Inlet (photo courtesy of Ocean Beauty Seafoods) Like most of Alaska's remote communities, Excursion Inlet, including Ocean Beauty Seafood's plant, is entirely dependent on diesel fuel imported into the area for heat and power. The steady rise of fuel costs, in logistics, transportation, and power generation, and the cost of maintaining diesel generators in Excursion Inlet make the development of renewable energy resources a sound investmentfor the Haines Borough. This project would support the study of conditions that might encourage the further development of hydropower generation infrastructure in Excursion Inlet. Project Background Since the 1970's AEA and SE Conference have explored the potential for hydroelectric development in the southeastern region of Alaska. Studies include: • Regional Inventory and Reconnaissance Study for Small Hydropower Sites in Southeast Alaska, October 1979, Department of the Army, Alaska District, Corps of Engineers • Southeast Alaska Hydropower, Robert Rutherford Associates, 1977 • Southeast Alaska Electrical Intertie Plan, ACRES International for SE Conference, 1988 • Southeast Alaska Intertie Study, Phase 2, D Hittle & Associates for SE Conference, 2005 The AEA studies identified two creeks at Excursion Inlet as potentially feasible hydroelectric sites. These creeks are North Excursion Inlet Creek and South Excursion Inlet Creek. AEA13-006 Grant Application -Haines Borough Excursion Inlet Hydro Phase 11 09/24/2012 Renewable Energy Fund Round 6 Grant Application Will ENERGY AUTHORITY According to the reports, the two projects would have installed capacities of 2.0 MW and 1.1 MW, respectively, and generate a total of 4,180 MWh annually. Project Description AEA Renewable Energy Fund grant guidelines require a multi -phase approach to project development. The Borough is currently conducting the first phase (Reconnaissance) and is requesting funds for the second phases in this application: Feasibility/Conceptual Design Studies. Excursion Inlet Hydro Project - Phase II 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. The Excursion Inlet Hydro Project is located on Excursion Inlet in the community of the same name in southeastern Alaska (See Figure 1). Excursion Inlet is strategically located in Icy Straits, the water body at the extreme southwest of the Haines Borough. The community is composed of 95 land owners including Wards Cove Packing Company, dba Ocean Beauty Seafoods, and several commercial sport fishing lodges. The industry and most residences are seasonal. The valuation of the community in FY12 was $16,200,000. 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. Excursion Inlet is situated at 58025'0" N and 135°26'34" W. 2.2.2 Community benefiting — Name(s) of the community or communities that will be the beneficiaries of the project. Excursion Inlet is a community located in the extreme SW region of the borough. It is not an organized community but it has been home to a significant fish processing industry for many years. In addition to the seafood industry, the community of Excursion Inlet includes 119 parcels of land owned by 95 individual owners. AEA13-006 Grant application - Haines Borough Excursion Inlet Hydro Phase 11 09/24/2012 Renewable Energy Fund Round 6 f�� �"� Grant Application I 400= ENERGY AUTHORITY 2.1 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels X Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre -Construction Construction Reconnaissance Design and Permitting X Feasibility Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. A Phase II Feasibility Study would be carried out, including the following tasks Project scoping Detailed energy resource analysis • Identification of land and regulatory issues • Permitting and environmental analysis • Detail analysis of existing and future energy costs and markets Assessment of alternatives Conceptual design analysis and cost estimate • Conceptual business and operations plan Final report and recommendations AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 09/2412012 Renewable Energy Fund Round 6 IIIIIIIIED =,:). Grant Application ©411111K�3ENERGY AUTHORrrY 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 has multiple benefits, most tied to Ocean Beauty Seafood's (OB) ability to operate successfully during an extended season at Excursion Inlet. The financial benefits are the result of lower operating costs and increased capacity. During the shoulder seasons - March to April and September - the plant cannot operate at full capacity and the diesel power generators operate inefficiently and OB cannot operate profitably. The shoulder seasons present opportunity for new markets. With lower power generation costs, OB could expand into the herring and crab markets, and increase its halibut poundage. The fall season presents black cod in addition to coho; value- added repackaging of salmon frozen during the peak season is also a shoulder season activity. Lower power generation costs would result in a longer profitable operating season, which would benefit the fishing fleet by providing a buyer in new markets, would benefit employees by providing income, would benefit the municipality and benefit the state with increased raw fish tax. OB currently buys from approximately 30 trollers, 40 seiners and 60 gillnetters, the majority residing in the region. Historically, when the plant is stressed from operating at peak capacity, OB will limit the amount of product it can purchase, and the fleet has no market. The net total increase in available power by the use of hydropower with diesel backup will increase plant capacity. This has potential to increase the OB fleet by providing additional markets. Increased fish product landed at Ocean Beauty Seafoods translates into increased raw fish tax revenue for the Haines Borough. Providing this clean power would lower overall pollution and CO2 levels, further allowing OB to increase capacity. An indirect benefit is increased community service to the Haines Borough. OB's plant provides garbage, fuel, freight, and airport maintenance to the region, but they can do so only when processing at a high level of output. The longer they operate in a season, the greater their ability is to provide these services to the community. Additionally, the availability of hydropower in Excursion Inlet will improve the quality of life for residents by alleviating the need to purchase, operate and maintain stand-alone diesel or alternative energy generators. There are 119 parcels and 95 separate land owners in Excursion Inlet. The Haines Borough has selected additional lands in Excursion Inlet, and when titled, intends to sell them. The possibility that the Excursion Inlet community will grow is real; low cost energy encourages development and growth. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source at other contributions to the project. The Haines Borough requests funding for the second phase of study proposed in this Grant Application. A total of $223,536 is required, to conduct the more detailed studies of the project to be performed in the Phase II Feasibility Study. The Haines Borough intends to provide $10,000 matching funds in Phase II of the project and requests that this grant cover the remaining amount of $213,536. AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 9/24/2012 Renewable Energy Fund Round 6 41111117) Grant Application �dMll=ENERGY AUTHORITY 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project's total costs and benefits below. Grant Costs (Summary offunds requested) 2.7.1 Grant Funds Requested in this application. $213,536 2.7.2 Cash match to be provided $10,000 2.7.3 In -kind match to be provided $ 2.7.4 Other grant applications not yet approved $ 2.7.5 Total Grant Costs sum of 2.7.1 through 2.7.3 $223,536 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational ro'ect 2.7.6 Total Project Cost (Summary from Cost Worksheet $15,900,000 including estimates through construction 2.7.7 Estimated Direct Financial Benefit (Savings) $18,994,000 2.7.8 Other Public Benefit (if you can calculate the benefit in $ terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5. AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 Renewable Energy Fund Round 6 Grant Application �400= ENERGY AUTHORITY 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. to the Manager of Haines Borough, will be the Proiect Manaoer and responsible for managing the project for the Grantee. Mr. Culbeck's contact information is provided in Section 1, above. 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. Start End Milestones Tasks Date Date Project scoping This will be the kickoff for this phase of work. 7/1/13 7/15/13 Detailed energy resource Based on the project configuration analysis and hydrology of the applicable stream(s), average annual energy production will be estimated. For the feasibility phase analysis it is expected that a hydrologic record for a similar stream in Alaska will be selected and corrected by drainage area. The monthly energy production for the hydroelectric projects will be compared to the Excursion Inlet community needs. As a part of the work, stream gauges will be installed at the two streams to begin collectinq flow data. 7/15/13 8/15/13 Identification of land and Issues regarding land -use, and regulatory issues regulatory issues will be further developed in this phase of study. Land acquisition (or lease?) for the projects will be identified and acquisition costs estimated. Regulatory issues associated with operation of an electric utility will be identified and costs estimated. 7/15/13 9/15/13 Permitting and environmental Cost estimates will be prepared for analysis acquisition of necessary permits to allow the construction and operation of hydroelectric ro ect s . Initial 9/15/13 11/15/13 AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 Renewable Energy Fund Round 6 ®z " Grant Application 001--) ENERGY AUTHORITY scoping of environmental issues (expected to be primarily aquatic resources, but terrestrial resources will also be reviewed) will be made with the involved regulatory agencies. It is expected that the major issues will be associated with aquatic resources and will be related to minimum flows and fish passage requirements. Terrestrial issues associated with project impacts will also be investigated. A site visit to assess these issues will be budgeted for this phase of work. Detailed analysis of existing Existing energy uses and energy and future energy costs and production from the proposed projects markets will be reviewed to determine how well the proposed projects can meet the needs of the fishing fleet, commercial interests and residents in the community. Possibilities for growth of the community and Ocean Beauty Seafood's facility will be made to determine what role the projects can play in meeting those needs. 7/15/13 8/15/13 Assessment of alternatives Alternatives to construction of hydroelectric projects will be reviewed. Alternatives may include wind power, tidal power, or interconnection to a regional grid SE Intertie . 7/15/13 8/15113 Conceptual design analysis A conceptual design for each and cost estimate hydroelectric project will be developed. A project plan; profile along the water conveyance system; a plan of the diversion dam and intake; a powerhouse plan and a single -line diagram will be developed. As a part of the design analysis it is expected that a site visit will be required, and the site plan topographic information will be refined. A cost estimate for each project will be developed. 11/15/13 2/15/14 Detailed economic and Based on the project development financial analysis cost estimated energy sales will be estimated and projected overtime. An estimate of the operating costs for the projects will be made. Sources of funding for project development will be reviewed and cost of capital estimated. A financial model will be developed to determine the projects' ability to cover operating costs and service debt. 2/15/14 3/15/14 AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 Renewable Energy Fund Round 6 r,?� Grant Application I 6=--) ENERGY AUTHORITY Conceptual business and A business plan will be developed to operations plan address the structure for developing the projects and the plan for project operations. This task will require specialized consultation due to political and regulatory realities, given that Excursion Inlet is not within an ARC service area; the Haines Borough, as a home rule borough, has options for delivering services within service areas. 3/15/14 4/15/14 Final report and A final report will be developed to recommendations document the results of the study. Included in the report will be recommendations for further project development if merited. 4/15/14 5/15/14 AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 /44ME=D ALASKA Renewable Energy Fund E7) ENERGY AUTHORITY Grant Application Round VI 3.4 Project Resources Describe the personnel, contractors, 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. A team approach will be emploved to successfully complete this oroiect. The team consist of The Haines Borough, the selected consultant, and the AEA grant manager. Each of the tasks described in this application requires specialized knowledge and skills that must be obtained from private sector consultants and service providers engaged in or highly familiar with hydropower resource development. At present, Environ International Corporation and their subcontractor Civil Science is completing the scope of work associated with Phase I. 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. Mr. Culbeck will be the project manager and primary point of contact for communications with AEA and the grant manager. This will ensure an effective, continuous flow of communication throughout the project. The project team will use a suite of project management tools including web -based communications and reporting, task and milestone tracking, work breakdown structure, scheduling, document control, budget control and risk management. The project manager will coordinate with the AEA grant manager to develop a schedule of reports. At a minimum, the borough will conduct monthly status tele- conferences and web -based distribution of reports on scope, schedule, budget and unresolved issues. Troubleshooting reports and teleconferences will be scheduled on an as -needed basis. 3.5 Project Risk Discuss potential problems and how you would address them. Potential risk for this project centers on site conditions. Field work is required for project development and investigation, stream gauging, environmental review and permitting requirements. Some of these activities can be impeded or delayed by weather conditions and/or stream flow. The project team is familiar with contingency requirements for site work in remote locations and will effectively manage the project schedule to avoid disruptions or delays. Potential risks associated with development of the hydroelectric projects will be identified as a result of the studies. AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 9/24/2012 ORITY ®ENERGYALASAUTHKA Renewable Energy Fund Grant Application Round VI 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 ,chase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. For pre -construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as The 1979 report "Regional Inventory and Reconnaissance Study of Small Hydropower Sites in Southeast Alaska' performed by CH2M Hill identified North and South Excursion Creek as potential hydroelectric project sites. The potential resource includes two streams near Excursion Inlet. Either one or both of these streams could be used for hydroelectric energy generation. Alternative generation resources include wind and interconnection to a regional grid. Based on available wind resource maps Excursion Inlet does not appear to have a wind resource that is economic. The SE Intertie has been under study for a long time. The cost to interconnect locations such as Excursion Inlet appears to be cost prohibitive. 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. Excursion Inlet is a remote communitv in the southwestern Part of the Haines Borough. Ocean Beauty Seafood's fish processing plant is the primary employer and only significant fish processor in the region. During the summer, the facility employs 400 people and supports a varied fleet of 127 boats that depend on the plant for maintenance, fuel delivery and ice. Ocean Beauty Seafood provides all power to the community. Their facility is presently operating strictly on diesel fuel for boilers and electricity generation. The electrical power system consists of five diesel generators: three 60OKW D398, one 275KW D353, and one 1100KW 3516. These generators are over 20 years old, and are about half as efficient as the current generation of diesel generators. The minimum operating power needs are approximately 800 kW with average operating needs at around 1,600kw. The maximum demand is roughly 2,100 kW. Based on current generator capacities, other than during peak demands, the facility is not able to efficiently match power needs to its generator capacities. Residents and small businesses provide their own power with diesel or gas -fired generators up to 20kW. 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. During an average year, Ocean Beauty Seafoods consumes approximately 300,000 gallons of diesel to produce 3,900,000 KWH/yr. During the larger seasons of the early 2000s these numbers were typically doubled. Currently, energy use in Excursion Inlet is highly seasonal, as Ocean Beauty Seafoods is operating its facility from June through September. The rest of the AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 9/24/2012 /` ALASHKA Renewable Energy Fund Grant Application Round VI year energy needs are limited to energy for their facility caretaker staff. As previously noted, it is expected that energy from a hydroelectric resource would have a substantially lower cost. Lower cost power would allow Ocean Beauty Seafoods to extend its operating season, thereby opening new markets in herring, crab, halibut, coho, black cod and value-added repackaged salmon products. The Excursion Inlet community consists of 119 parcels, with Ocean Beauty Seafoods having the single greatest impact on resource use. Three sport fish lodges and residents generate their own power with small generators. The project will address the needs and methods of distributing electrical service to the community, thereby reducing total community fossil fuel consumption and corresponding carbon footprint. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. For 2010, Ocean Beauty Seafoods paid $3.23 per gallon for diesel, including transportation and storage. It is reasonable to assume that as the economy recovers that world demand will drive these prices higher over time. Ocean Beauty Seafoods' variable O&M costs have been estimated at $0.02 per kWh. Most of the generators installed there are very old and inefficient. It is likely that within the next 5 years they will need to replace the older engine -generator sets. Given the estimated efficiency of the units (13 kWh/gal), and fuel cost in 2010, the estimated total cost of power produced in 2010 is on the order of $0.30 per kWh. Obviously, this will escalate over time with fuel price. Note that in 2003 the diesel fuel price in Excursion Inlet was $1.10 per gallon. While presently Ocean Beauty Seafood is the largest significant energy user, the Borough anticipates a market for energy to residential and light commercial interests developing over time. The proposed hydroelectric projects have the potential to displace significant amounts of diesel - fueled 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 methods AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase If 9/24/2012 IVo ALASKA Renewable Energy Fund Grant Application Round VI Table 1 summarizes the project information from the 1979 report. Table 1 Hydroelectric Sites for Excursion Inlet Site Name S. Excursion Inlet Creek N. Excursion Inlet Creek Drainage Area (Sq. Miles 14.3 13.6 Mean Annual Flow CFS 118 117 2-year, 7-day low flow CFS 4.3 4.1 Net Head feet 200 110 Full Gate Flow CFS 140 140 Rated Capacity kW 2,020 1,110 Dam Type Rockfill Concrete Diversion Size 5' hi h x 40' Ion 5' x 70' Flume Length 5,300' 6,000' Diameter 5' 5' Penstock Length 1,650' 700' Diameter 4.5' 4.5' Transmission Length mile 1.5 1.5 Voltage QM 15 15 Costs Construction $6,000,000 $5,400,000 Annual Operations $65,000 $36,000 AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 9/24/2012 rALASKENERGYAUTHORA Renewable Energy Fund Grant Application Round VI Figure 4 is an early conceptual project plan for the two projects, taken from the 1979 report by CH2M Hill. This plan is provided for general purposes and illustration of potential locations of project features. Development of a conceptual plan and engineering details in Phase II will provide a specific and updated approach. Figu 4 — roiect an lJ� f f ` ^` ••. I• a`� I _ r' IC[JL`CON . `. �' No.7 .�..g• CUXSruN NEB X ' N � as 13 �Y .�H 17 • 1 ; • B ,,, . •„ � I •,.1,,. .t 'I i;,-�!. i tom: •....... PLUME "STO"THAnMIMON UME a AM Excursion Inlet Pxri1E ® Hydro Sites = alccMess Atll.ACAD tmkh FM The report notes that both North and South Excursion Inlet Creek have anadromous fish present, including sockeye and coho salmon (S. Excursion Creek) and pink and chum salmon (N. Excursion Creek). Recent field work in Phase I has updated species distribution to include coho and chum salmon also present in S. Excursion Creek and coho salmon present in North Excursion Creek. ADF&G will update their anadromous waters catalog with new information from surveys conducted with ENVIRON staff in August 2012. Coho salmon will be the species that penetrates highest in the basin and defines the anadromous zone in project streams. According to the study the two projects could have a total installed capacity of approximately 3 AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 9/24/2012 /I ALASKA Renewable Energy Fund C) ENERGY AUTHORITY Grant Application Round VI MW and generate an annual average of 3,800,000 kWh. This represents a plant capacity factor of 15%. It is not known how this information was developed in the study, nor how the installed capacity was selected. The USGS, National Water Inventory System database was used in Phase I to identify stations near Excursion Inlet that had similar watersheds to those of both North and South Excursion Inlet Creeks. Three USGS stations were located on the Kahtaheena River, approximately 4 miles to the west of Excursion Inlet One of these stations (15057590) had a drainage area similar to but slightly smaller than North and South Excursion Creeks. The period of record for all three stations is very limited and no rating curve was developed for these stations. Therefore the data from these three stations may not be representative of regional hydrologic patterns. The next nearest gage site is the historic station for the Pavlof River near Tenakee (station 15108000), situated approximately 40 miles south of Excursion Inlet. This gage site had a drainage area of 24.30 square miles and a period of record from June of 1957 through September of 1981. During this period, the mean monthly discharge ranged from 86 cfs in March to 329 cfs in October (Figure 5). The maximum peak flow of 4,620 cfs was observed on October 30, 1978. Periods of high flow occur in Late April through early June and again in October in the Pavlof River. Periods of lower flow tend to occur in late July through August and January through March. Figure 5 — Mean monthly stream flow (cfs) for the period from June 1957 through September 1981 Pavlof River gage site near Tenakee. Pavlof River near Tenakee (USGS station 15108000) N u 350 0 300 E 250 w 200 Y a 150 - ELL 100 c— o 50 c 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month Based the hydrology patterns seen from Pavlof River, near Tenakee, the average monthly flows line up with the local needs at Excursion Inlet (peak demands from May through September. Average monthly flows suggest that energy production could displace the majority of diesel generation used by the community and its fish processing industry. Interconnection of the powerhouse(s) to the electrical distribution system will be reviewed as part of Phase II work. Both powerhouses are located a short distance (approximately 1.5 miles) from the community. It is expected that transmission will be relatively inexpensive. Interconnection will likely require consideration to coordinate diesel generation and hydroelectric generation. At a minimum, the diesel generation facilities will need to be maintained for backup power and to augment hydro production during low -flow periods. AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 9/24/2012 �� ALASKAENERGY AUTHORITY Renewable Energy Fund Grant Application Round VI 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. Land records will be reviewed and the owner(s) of the project lands will be identified. If the project is located on land owned by others, then the Borough would need to either acquire the some or all of the necessary land, or to obtain easements or rights of way. If any part of the project is on USDA Forest Service land, then a Special Use Permit would be required, and they would have mandatory conditioning authority if a FERC license were required. 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 and discussion of Applicable Inlet site(s) may include: a hvdroelectric Droiect or Droiects at the 1. Water rights and/or Instream Flow certificate — Alaska Department of Natural Resources (DNR), Division of Mining, Land, and Water.(In Alaska, federal reserved water rights may be involved if the project water source is on federal land.) 2. Instream Flow reservation — may be required as protective measure for preservation of fish habitat 3. Land ownership, easements or rights of way, USFS Special Use Permit 4. FERC License, or Alaska DNR, Division of Mining, Land and Water, Dam Safety and Construction Unit (DSCU) Certificate of Approval to Construct A Dam and Certificate of Approval to Operate A Dam 5. Fish Habitat Permit — Alaska Department of Fish and Game (ADFG) 6. Water Quality certification — must meet state standards administered by the Department of Environmental Conservation (DEC), Division of Water 7. Coastal Management Program project consistency determination 8. Local construction permits, if applicable 9. Army Corps of Engineers Section 404 Permit for developments within ordinary high water of navigable rivers and/or wetlands of navigable rivers This list of permits will be reviewed and updated. Permitting Timeline FERC has primary jurisdiction over construction of most U.S. hydropower projects. However, FERC has agreed that some small projects in Alaska are non -jurisdictional. For example, the Nushagak Cooperative in Dillingham, Alaska was able to obtain a declaration of non -jurisdiction because its proposed project would not be connected to an inter -state grid; would not be located on federal lands, and is located on a non -navigable river. If a FERC license is required, may be possible for a small project to obtain a FERC license within a year after the formal initiation of the licensing_ process, if the environmental issues can be resolved expeditiously with the resource agencies as the process moves along. However, if significant information needs are identified, and depending on the number and the nature of studies required, the permitting process could take much longer. AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 9/24/2012 14KED) , ALASKA Renewable Energy Fund Grant Application Round VI If the project(s) were determined not to be within FERC's jurisdiction, the State of Alaska would approve the construction and operation. The timeframe for state permitting would be explored with the agency in the initial phases of the project, but it is anticipated that timing would again depend upon the complexity of the resource issues that are identified. Potential Barriers Potential barriers to obtaining the permits needed to construct a project(s) at Excursion Inlet include: • fish habitat/instream flows • anadromous fish distribution in both creeks • location of project structures within or affecting anadromous fish habitat • sediment routing at the diversion structures • water quantity and quality issues associated with the diverting of streamflow for the proposed projects • other environmental issues not currently known 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 Threatened and endangered species lists have been reviewed to determine which, if any listed species are present. Further assessment of existing information regarding fish presence, wildlife, habitat, wetlands, archaeological and historical resources and other environmental issues and constraints will be gathered. Archaeological and historical resources typically require consultation at the federal and/or state levels depending upon the licensing or permitting processes that are involved. Phase II will assess what, visual and aesthetic issues may be of concern and the level of study that will be required. It is anticipated that potential telecommunications and aviation will not be adversely impacted, as well as the visual and aesthetics components. AEA13-006 Grant application - Haines Borough Excursion Inlet Hydro Phase 11 09/24/2012 /ORITY �, ALAUTAUTENERGYHKA Renewable Energy Fund Grant Application Round VI 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: Applicant's 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 enerav system rroiect construction cost estimates would be developed as part of the studies. Recent projects Alaska have ranged in cost from $3,000 to $10,000 per kilowatt of installed capacity. Table 2 lists some recent projects and their statistics. The 1979 estimated cost for the two projects was $11,400,000 for a total installed capacity of 3,110 kW. This equates to $3,670 per kW. Table 2. Costs of Recently Developed Alaska Proiects Project I Capacity (kW) Generation MWh Cost (Millions) Cost per kW Falls Creek 800 2,1601 $8.5 $10,625 Kasida a Creek 3,000 11,900 1 $10 $3,333 Lake Dorothy 14,300 74,500 1 $60 1 $4,195 Excursion Inlet construction will benefit from its proximity to Juneau. Nonetheless, construction of two projects simultaneously is complicated, especially with a short construction season and the need for a construction camp. These projects will benefit from very short transmission lines and construction taking place at altitudes below 500 feet. It is reasonable to assume the two projects could be developed for approximately $15,500,000 (approximately $5000 per kW). It is likely that the Borough could finance some portion of the development cost of the project by grant funds and the balance could be obtained through Bonds or other municipal financing. 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 Hydroelectric operating and maintenance costs vary should be relativelv inexpensive to operate. O&M costs will be likely on the order of $300,000 annually covering insurance, labor, management, supplies, etc. This O&M cost does not include debt service. It is expected that debt and O&M costs would be funded through the sales of electricity to the community and Ocean Beauty Seafood. Estimates of Operation and Maintenance costs will be developed as part of the Economic and financial analysis. AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 09/24/2012 AGIED NERGY KA Renewable Energy Fund Grant Application Round VI 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 arant-funded oroiect As noted above, it is would be sold to the community. Residential uses while presently not significant, are expected to rise with the provision of services. The existing industrial user, Ocean Beauty Seafoods, would be the primary purchaser in the summer months. Simple cost of power produced would be in the range of $0.25 per kWh, based on 30-year financing and a total of $4,000,000 of grant funding. Of course once the project is paid off, cost of power would drop dramatically. The levelized cost of power (assumed 50 year life) would be on the order of $0.12 per kW. Based on the spreadsheet analysis of diesel displaced by hydroelectric production, there will be a respectable benefit/cost (B/C) ratio for the project. If the hydroelectric projects are able to generate 3,000,000 kWh annually, they would displace 250,000 gallons of diesel fuel annually. Based on the NPV of the value of the diesel displaced and the NPV of the development cost of the project, the B/C ratio will be 1.16. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please fill out the form provided below 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. Hydro projects minimum average 3,000,000 kWh Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other 5 diesel generators 3,175 kW Diesel 20 years + 13 kWh/aal b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non -labor Not separately broken out Estimated at $0.02 per kWh 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 09/24/2012 /�� ALASKA Renewable Energy Fund E1 ENERGYAUTHORIN Grant Application Round VI 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] 3,900,000 ii. Fuel usage Diesel [gal] 280,000 gal Other iii. Peak Load 2,100 iv. Average Load 1,600 v. Minimum Load 800 vi. Efficiency 13 kWh/gal vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 20,000 gal ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other a) Proposed renewable capacity 3,110 kW Hydro (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 3,000.000 ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] iv. Other hydro a) Total capital cost of new system $15,900,000 b) Development cost Included above c) Annual O&M cost of new system $307,000 d) Annual fuel cost Project Benefits a) Amount of fuel displaced for AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 09/24/2012 Renewable Energy Fund i. Electricity 280,000 ii. Heat 20,000 g, M. Transportation b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits Power Purchase/Sales Price $3.23 / gallon Increased employment opportunity for community, potential lower electric costs for community if tie-in. Increased tax revenues, lower carbon footprint, Cleaner air a) Price for power purchase/sale $0.15 to $0.27 per kWh range anticipated Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback (years) 1.19 30 years AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase II 09/24/2012 /ORITY " AENELASHKA Renewable Energy Fund Grant Application Round VI 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 (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) Discuss the non -economic public benefits to Alaskans over the lifetime of the project The Excursion Inlet proposed hydroelectric projects will show a substantial benefit to the Haines Borough and the people of Alaska. Benefits include the following: • Reduced dependence on fossil fuel. Project can be expected to displace 250,000 gallons of fuel used by the existing diesel generators and 20,000 gallons of fuel used for heating each year. Over a fifty-year project life the proposed project would have a net present value benefit of $17.5 million and a net present value cost of $15 million. The hydroelectric project would reduce carbon emissions and pollution in the region. • The project would provide electrical service to community residents, commercial and industrial users at an attractive price. Affordable energy encourages community growth and economic development. With stable electricity pricing, the industrial user may be able to expand its operations and provide an expanded market for the regional fleet and additional jobs. One hundred twenty- seven distinct permits currently produce in the area. With expanded and varied markets, currently inactive permits could be activated, and permits fishing other regions could be attracted to Excursion Inlet, thereby growing the industry and the economic benefits that accrue, including tax revenues to the State of Alaska and the Haines Borough. The project is not being pursued to generate profit. Rates for electricity would be set to recover costs (debt and O&M). A levelized rate of $0.13 per kWh is expected, based on average production. An initial rate of $0.25 per kWh would likely be required to cover costs during debt service on the project. • The projects are small run -of -river hydroelectric facilities that would be designed to minimize any aquatic resource impacts and displace fossil fuel generation. They may qualify to sell green tags. Generally, for hydroelectric projects to sell green tags, they must be qualified as "low impact hydro." We would expect to qualify through the Low Impact Hydropower Institute. The hydroelectric project will reduce fossil fuel consumption and accompanying emissions pollution, thereby contributing to the reduction of Alaska's overall carbon footprint. AEA13-006 Grant application -Haines Borough Excursion Inlet Hydro Phase 11 09/24/2012 ALASM Renewable Energy Fund Grant Application Round VI 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 The business and operations plan will be developed as part of the feasibility study (See Task 3.2. Excursion Inlet is currently outside of a local utility ARC service area. To provide the best operations scenario, the Borough will be looking at several options. One intriguing option could be creation of a local energy service area governed by a local board. Other options include variations on an agreement with a certified utility for operations and maintenance, a cooperative agreement that includes Ocean Beauty Seafoods, or other viable option. Ocean Beauty Seafoods will need to maintain backup power and swing load capabilities for their operation. Backup power and infrastructure will be reviewed as part of the feasibility study. Maintenance and operations will be financed through user fees. The operating costs and ongoing support for existing systems will be considered during the development of an operations plan. The Haines Borough is committed to energy sustainability and reducing energy costs Borough wide. Currently the Borough tracks usage, savings and benefits of energy management. AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 09/24/2012 /�ALASM Renewable Energy Fund Grant Application Round VI 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. The Haines Borough and their consultant are presenting completing the reconnaissance study and plan to initiate this Phase II study, immediately upon the completion of Phase I. Furthermore, in meetings with Ocean Beauty Seafoods and local residents, sustainable hydropower was discussed as a high priority need for the community. We intend to complete feasibility phase of the project within the timeline given in section 3.2. 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. The Borough has provided two letters demonstrating local support. Based on our contacts in the community to date, we do not believe there is any opposition to the projects should they prove feasible economically, and if environmental concerns are capable of satisfactory resolution. We intend to consult with the community on an ongoing basis as the process of studying and possibly developing these projects moves forward. AEAIB-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 09/24/2012 /ALASKA Renewable Energy Fund ENERGY AU OMW Grant Application Round VI 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. 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 Calla, at scalfa0aidea.or9. Source of Matching Anticipated RE- Fund Grantee Funds: Cash/In- Milestone or Task Completion Grant Funds Matching kind/Federal TOTALS Date Funds Grants/Other State Grants/Other (List milestones based on phase and type of project. $ $ $ See Milestone list below. Project Scoping 7/15/13 $4,665 $ $4,665 Detailed energy resource 8/15/13 $59,740 $ $59,470 analysis Identification of land and 9/15/13 $8,268 $ $8,628 regulatory issues Permitting and environmental 11/15/13 $21, 452 $ $21,452 analysis Detail analysis of existing and 8115113 $4,432 $4,432 future energy costs and $ markets Assess alternatives 8/15/13 $57,584 $ $57,584 Conceptual design analysis 2/15/14 $32,558 $32,558 and cost estimate $ Detailed economic and 3/15/14 $8,879 $8,879 financial Analysis $ Conceptual business and 4/15114 $10,114 $10,114 operations Ian $ Final report and 5/15/14 $5,856 $10000 Haines $16,479$ recommendations , Borough TOTALS $213,535 $10,000 $223,535 Bud et Categories: Direct Labor & Benefits $108,923 $10,000 $118,923 Travel& Per Diem $12,765 $ $12,765 Equipment $14,000 $ $14,000 Materials & Supplies $1,627 $ $1,627 Contractual Services $76,220 $ $76,220 Construction Services $0 $ $o Other $ $ $ TOTALS $213,535 $10,000 1 $223,535 AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 09124/2012 Renewable Energy Fund Proiect Milestones that should be addressed in Budget Pronosal 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 right of and schedule markets way issue constraints which 7. Final report and 6. Assessment of should be identified recommendations alternatives 5. Permit approvals by the grantee 7. Conceptual design 6. Final system 5. Integration and analysis and cost design testing estimate 7. Engineers cost 6. Decommissioning old 8. Detailed economic estimate systems and financial 8. Updated 7. Final Acceptance, analysis economic and Commissioning and 9, Conceptual financial analysis Start-up business and 9. Negotiated 8. Operations Reporting operations plans power sales 10. Final report and agreements with approved rates recommendations 10. Final business and operational plan AEA13-006 Grant Application - Haines Borough Excursion Inlet Hydro Phase 11 09/24/2012 Renewable Energy Fund Round 6 34111111117,) nl:.� Grant Application mw�D ENERGY AUTHORITY SECTION 10— AUTHORIZED SIGNERS FORM Community/Grantee Name: _ E6 Regular Election isheld: _ / Date: PirS+ (.�.S,i! Or OcIV 0i Authorized Grant Sign rs : Printed Name Title Term Signature 0AY, GfFt�nSvlSi {> N A J'.la �JTwo-P\ i f��la�t T• kcz Vir,kr N/A I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature s pc,�„e, �Co "t- AAar ao�i- -� Grantee Contact Information: Mailing Address:��)�1�C 5� AIC Phone Number: q07 Fax Number: Cfo 7--76 lo E-mail Address: rines'� a?ne��aE. Federal Tax ID #: 47 _ 6 gab ZQb Please submit an updated form whenever there Is a change to the above information. AEA13-006 Grant Application 27 Renewable Energy Fund Round 6 � �$. K Grant Application �4NEr—)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 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 Mark Ear est Signature V Title Borough Manager Date A AEA13-006 Grant Application N O O m O O O O O N O O O cc Q O N n N O O O N O1 Q Of Q O N VI N l0 pt W M O b N Ol O N N M �+ '1 n V1 N O N Yl eel N m O m n m M O N N VI u n vl N b Q M 'i .i rl m m .Ni N n N n M N j0 '1 N O r 00 O o 0 0 m rv� Q m Q ry ry N m °i �n m 0 n n r° x m o 0 0 �o Y � N vl O p1 V1 V1 N O W ry ry m O E ry E n N Y m y o c Q q ~ 9 Q w V Vf C m m Q O N N O O O Q C C M N V1 V1 ei ~ q C N p n w O O pl Y C g O 9 n N r V a o n w n o rvry O oO m Q 4!1 Nm V1 1!1 nm d C N N = p V= T d p p C C r O d g q m m Q Q .i ry o 0 o m m o 00 m 'p fi N N n N 1(1 M m Q N N m N y q c m u a m r � v M tO V W N N Q N O N N O O O O Q M N n rl N V1 V1 O O O O N N M M m m N N MC C N Y vydv��j d r 6 O q T N m Q c0 N O O N N O 00 N y 00 .i M m N V1 M d O T Q Q d q �n a ca F E c N w M m m O v+ m m o O o N N 6 q r g d « O N m m b m w m O w tO O N N O O O M • 1(1 M N L!1 V1 Ip N m n O o m m O o co 0 o o O O o m m a n "j N r c d q ry Q ry Q ry .i N .1 m ry o m m o 0 0 .i N of O O m in ry d C F n` In m m on ry w bpi H H m n n a N 07 K — o—c O m [O n !O tD N Q M m t-' u Y •n u mCdas N 00 C N q w m m o 0 0 'EL -0 pN on yo 00 °m .� 2 A" 1°- c c c¢¢¢¢¢ a` �.°i m a m El r mp ` E ` a° W o Y N K« c n r F m a c f n P N m` vOi c m LD U d L p yl q � x Page 2 CBui�'I SEAFOODSiNC. EES consulting September 10, 2010 Don Jarrett Kirkland, WA 98033 Dear Mr. Don Jarrett, Ocean Beauty is very excited at the prospect of the Hydropower option finally being pursued here at Excursion inlet. We are pleased to see this option being considered for the community. We have for a long time now tried to convince others that the Hydropower options at Excursion Inlet made a lot of environmental and economic sense., With energy cost going up and demand both at our factory and the increased population of the community the reasons for moving to hydro power are now magnified from where they were 7 years ago when we first took over the operation and started promoting the need for a renewable energy source. For many years we have looked for ways to extend our operating seasons and expand the fisheries we participate in. But the cost of energy has always created large operating inefficiencies in the low volume fisheries. These are typically fishery where the local fleets are the primary participants operating out of the surrounding communities. The lower cost energy generated by hydropower will allow us to pursue these fisheries providing markets to gillnet and troll fishermen from the beginning to the end of the season. Additionally, the efficient source of electricity provided by hydropower will allow Ocean Beauty to offer markets to fall and early spring long line fishermen, as well as local crab fishermen. With an efficient power source more value added operations could be -developed providing additional employment opportunities as well as longer period of employment. The raw materials generated by the fishing fleets delivering their catches to the Ocean Beauty plant at Excursion Inlet are some of the highest quality seafood products harvested In Alaska and lend themselves to being further processed into high quality table ready products. But the complications of generating the additional power needed to run the equipment for such operations has presented several hurdles. Not only is the cost of producing the power a significant consideration but we also have some environmental regulations to overcome. Being situated on the boundary with the Glacier Bay National park has created limitations on the amount of horsepower and gallons of fuel per year we are allowed to -operate and consume. Hydropower will minimize the majority of the concerns identified above offering Ocean Beauty and others at Excursion Inlet the opportunity to grow their business and increase the amount of processing activity preformed at Excursion Inlet. We want to extend our full support to the Haines Borough in their pursuit of an efficient source of Hydropower at Excursion Inlet. We also want to thank and commend all those associated with this effort fortheir progressive and forward thinking approach to this issue, especially, the Mayor, the Borough Manager and the Borough council. David Forbush Vice President of VA and Manufacturing Ocean Beauty Seafoods LLC Plmm¢ 286 286 5691 Email: D"ld.Fmbmh@umaubmuty,=m Auk- 1100 W. EWING ST. • P.O. BOX 70739 • SEATTLE, WASHINGTON 9810V • (206) 285-6800 • FAX (206) 285-9190 C3Pm6ca°� 5)'nAlIwg po@4 Excursion Inlet South Excursion Inlet, Alaska 99850 FCC GROL #PG-13-10449 Naber CTRT #002984 FFL#9-92-110-01-3E-06797 Phone (907)771-4830 Internet bruce@btpost.net Jan Hill, Mayor, Haines Borough P.O. Box 1209 DATE: 909 Oil @ & Borough Assembly Haines, Alaska 99827 This letter is in responce to an inquiry by Deborah Schnabel concerning local Rsident and Property Owner, responce to a Borough Proposed Grant Application, to study a possible Hydroelectric Generation Plant here at Excursion Inlet. I have talked to a number of folks here, and via phone & email, listed below, concerning the proposed Grant application, since receiving the inquiry. There have been no negative responces to such a Grant Application, and only one neutral responce. Most folks would welcome such a study to be done, to give the community an oppurtunity to see if such a project is feesable, and makes economic sense. There is one concern that was fairly common among the respondents, and that was, "If such a project was to be built, there should be a "Plan" for extending the Power produced to the local Borough Subdivisions, in Excursion Inlet, Ak, in the long term schem( of things." Some responders would NOT support, a Cannery only, project that leaves the local residents, without infrastructure improvements, in the long term. With the Long Term, Southeastern Intertie Power Grid being proposed in the region, a connection to that Intertie, would make excess power generated here, available for sale to other Users on the Intertie, and revenue from such sales, used for maintainance of the project, and to extend the local electrical infurstucture to the Excursion Inlet, Ak subdivisions. We would like to be kept informed as to the progress of the Grant application, and any subsequent Study, when completed. Sincerely. ,.0 nvm@(q°3 7mr oIno Po%4 Excursion Inlet South Excursion Inlet, Alaska 99850 FCC GROL #PG-13-10449 Naber CTRT #002984 FFL#9-92-110-01-3E-06797 Phone (907)771-4830 Internet bruce@btpost.net DATE: 991 M 0 for, and in behalf of: Chuck & Fay Elliott, Russel & Shelly Ables, Doug & Laura Vivian John & Anita Crabill, Tom & Betsy Bear, Bruce & Debora Gordon Adan & Haley DesRosiers, Jack Campbell, Matt Campbell, Wayne Lonn MacDonald Franklin & Sons, Clyde & Kathy Shafer, Paul Dillon Bob Newsome HAINES BOROUGH, ALASKA RESOLUTION NO. 10-08-228 Adopted A RESOLUTION OF THE HAINES BOROUGH ASSEMBLY SUPPORTING A RECONNAISSANCE AND FEASIBILITY STUDY FOR DEVELOPING A HYDROELECTRIC POWER SOURCE FOR EXCURSION INLET. WHEREAS, Excursion Inlet is located in the Haines Borough; and WHEREAS, the Haines Borough places a high priority on the economic welfare of residents and industries located in Excursion Inlet; and WHEREAS, the privately -owned Infrastructure currently producing energy for seafood processing in Excursion Inlet is dependent on fossil fuel; and WHEREAS, costs of producing energy by current means in Excursion Inlet Is jeopardizing the viable operation of the seafood processing industry; and WHEREAS, residential development is curtailed by the high cost of producing energy; and WHEREAS, a regional reconnaissance report commissioned by the US Army Corps of Engineers in 1979 identifies North Excursion Inlet Creek and South Excursion Inlet Creek as potential sites for locating hydroelectric power -generating facilities; and WHEREAS, the Haines Borough is committed to investigating the developing a renewable source of energy to supply the Excursion Inlet community; and WHEREAS, in 200B, the Alaska Legislature established the Renewable Energy Fund and authorized the Alaska Energy Authority (AEA) to administer procedures for awarding the grants and distributing grant funds; and WHEREAS, the AEA is accepting Round IV applications for grants from the Renewable Energy Fund and will make project recommendations to the Legislature for FY2012 funding; and WHEREAS, Round IV grant funds will enable the Haines Borough to reliably assess the long term economic viability of developing a hydroelectric power source in Excursion Inlet; and WHEREAS, the Borough has committed funding in the amount of $10,000 in the form of local match for the project, NOW THEREFORE BE IT RESOLVED that the Haines Borough Assembly supports the application for funding to conduct Phase I -Reconnaissance and Phase II- Feasibility Analysis and Conceptual Design for Excursion Inlet Hydropower Project. BE IT FURTHER RESOLVED that the Haines Borough Assembly authorizes the borough manager to sign all application and grant documents. ADOPTED BY A DULY CONSTITUTED QUORUM OF THE HAINES BOROUGH ASSEMBLY THIS 24u' DAY OF AUGUST, 2010. 7 �ES BOROG Janic Yill, Borough Mayor Ga �PGORPORgr y U SEAL `�o OCTOBER17 Apr 2002. ZTB OP AL.i