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HomeMy WebLinkAboutatka wind power studyRenewable Energy Fund Round 6 Grant Application MENED ENERGY AUTHORITY SECTION 1 — APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Atka . Municipal Government Fiscal Year End June 30 Type of Entity' p Tax ID # 92-0126898 Tax Status: For -profit or X_non-p7checkne) Mailing Address PO Box 47070 Physical Address 900B Kaangkux Lane Atka, AK 99547 Atka, AK 99547 Telephone Fax Email 907-839-2233 1 907-839-2234 dirks'uliea mail.com 1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER Name Julie Dirks Title City Administrator Mailing Address 721 Sesame St. #213 Anchorage, AK 99503 Telephone 907-522-0384 Fax 907-522-0385 Email dirksjuliea@gmail.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) X 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 projectJ�the its board of directors, executive management, or other governing authority. If applicant is a collaborative grouping, a formal approval from each participans 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 If no describe the nature of the funds for the benefit of the general public. please project and who will be the primary beneficiaries. �1.11'111A A AEA 13-006 Application Page 1 of 20 1101 4 v' 1 Renewable Energy Fund Round 6 Grant Application 6 ENERGY AUTHORITY 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) Atka Wind Power 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. A __L-_....,.,. Osn —;I-� Xeicc+ of I Inalnckn and 90 Atka, Alaska locates agout -1, 1 uu rrwt1b 11011 miles east of Adak in the Aleutian Islands. 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: 61.195676.449.898663. If you would like assistance obtaining this information please contact AEA at 907-771-3031. Atka, Alaska at 52.ZU/UUL,-'I 14.zu 1 rZy 2.2.2 Community benefiting — Name(s) of the community or communities that will be the beneficiaries of the project. Atka, Alaska JECT TYPExes as appropriate E enewable Resource Type X Wind Biomass or Biofuels 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 Reconnaissance Construction Design and Permitting X X Feasibility Construction and Commissioning Conceptual Design AEA13-006 Grant Application Page 2 of 20 Atka Renewable Energy Fund Round 6 i® n �_ ,►- Grant Application aw�)ENERGYAUTHORITY 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. --1 r_ :L:C1. _4- -fir This project seeks tunding Tor completion oT a recuni iaisscv iuc ai 16 JLMMY ,-. wind generated energy in Atka. The study will analyze whether wind power used in combination with the recently completed Chunixsax Creek Hydro -Electric project and diesel generated power can provide additional power needed to support electric heat to the entire Atka community and a planned expansion of Atka Pride Seafoods (APS) to a year-round processing operation with increased energy needs. Atka Pride Seafoods is a subsidiary of the Aleutian/Pribilof Community Development Association (AP I C DA) and is partially owned by the community of Atka. The ultimate goal is to meet 90% or more of Atka energy needs using renewable energy sources. 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) The community of Atka and Atka Pride Seafoods (APS) will benefit from this project. This project will reduce use of fossil fuels and the overall energy costs to the Atka community. The City of Atka recently completed construction of a small hydro -electric plant that will provide 283 KW of power to the community. While this amount of capacity will meet local community needs, it will not be sufficient to support the energy needs of the Atka Pride Seafoods which is partially owned by the local community. The plant will be operational about 10 months of each year. Diesel generators will have to be operated during the times when there is insufficient water to operate the hydro turbine. When the studies and plans for the hydro -electric project were completed in 1998 it was expected that the plant would meet all community energy needs with there being some excess power that could be converted to heat public facilities. Since the study was completed Atka Pride Seafoods has expanded operations and estimates that the processing plant will need to supplement their energy needs with diesel generated power. An additional expansion is planned for 2014-2015 and the plant will become a year-round multi -species processing operation. APS anticipates the need for an additional 250 KW of energy beyond what the electric utility is capable of providing. The community will benefit from the ability to heat their homes with electricity from a renewable energy source instead of relying on diesel fuel at $7.91 per gallon. At present diesel generated power costs users $.76 per kilowatt hour. The rate for hydro -power will be $.2666 per kilowatt hour for a savings of $.4934 or 64% lower energy costs for electricity. The addition of wind power and the ability to use electric heat instead of the more expensive diesel fuel will increase the savings. The feasibility study will analyze savings in detail. AEA13-006 Grant Application Page 3 of 20 Atka Renewable Energy Fund Round 6 401E) Grant Application r 4001--)ENERGY AUTHORITY � The logistics of getting fuel to Atka to support energy production Is dltrlCUlt. H Tuel Darge makes a trip to Atka once a year. The fuel company has one barge capable of delivering fuel to Atka so the barge doesn't always meet the planning schedule. There have been several instances of nearly running out of fuel in recent years. This year heating fuel was rationed before the fuel shipment arrived in Atka. Other benefits will include: • Significantly reduced dependence on diesel fuel and the expense involved in its transportation and storage. • Save on current operation and maintenance costs by less time from using diesel generators • Contribute to the reduction of air pollution, oil pollution from waste oil, and effects 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 OT Tnls project 15 4)OU,Uw. r-1ld�v Feasibility cost is $130,000. The project cost total is $190,000. The City of Atka will contribute project administration and management with a value of $20,000. The Aleutian/Pribilof Islands Community Development Association will provide $30,000 for met tower to obtain wind data. The total requested from the renewable energy fund is $140,000, 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project's total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $140,000 2.7.2 Cash match to be provided $ 405000 2.7.3 In -kind match to be provided $ 10,000 2.7.4 Other grant applications not yet approved $ 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $190,000 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.6 Total Project Cost (Summary from Cost Worksheet $ including estimates through construction) 2.7.7 Estimated Direct Financial Benefit (Savings) $ 2.7.8 Other Public Benefit (If you can calculate the benefit in $ terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5.) *Cost, benefits and future costs to be clone as part of stuay. AEA13-006 Grant Application Page 4 of 20 Atka Renewable Energy Fund Round 6 ®_ Grant Application WMEDENERGY 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. Project Manager: Julie Dirks, City Administrator 907-522-0384; dirksiuliea(a-)-gmail.com Resume is attached to this application. 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 be innin and ending of all phases of your proposed project. Project Milestones Reimbursable Tasks Timeline Phase L Reconnaissance • Project Scoping and • Project Management including solicitation 7/1/13 to 9/30/13 Community and selection of consultant to work on study Solicitation • Consultant and City Administrator will travel to community for site assessment and to hold a public meeting to introduce the project to Staff/Students/Community and solicit participation. (To be funded by next milestone and to be done concurrently.) • Resource • Project Management 911113 to 10131113 Identification and • Preliminary site visit Analysis • Erection of met tower with instruments • Contract for wind data analysis • Determine point of contact and train local agents to conduct bird observations • Gather data • Land use, Project Management 911113 to 11130113 permitting, and • Determine site ownership issues, if any environmental • Contact agencies for preliminary approval: analysis SHPO, DOD, RCMP • Document, if any, community concerns with sight and sound at chosen location • Preliminary design • Project Management 1111113 to 2/28/14 analysis and cost • Utilize Wind Resource Report to identify optimal wind turbines and configuration • Cost of energy and • Project Management 311114 to 3131114 market analysis • Assess cost of energy for current and AEA13-006 Grant Application Page 5 of 20 Atka Renewable Energy Fund Round 6 i � Grant Analication �}ENERGY AUTHORITY predicted usage • Simple economic • Project Management 311114 to 3131114 analysis • Compare current vs. predicted price of energy • Final report and • Project Management 411114 to 5131114 recommendations • Prepare Wind Resource Report and Present to Community along with options for development. Phase ►L Feasibility • Project scoping and • Project Management 7/1/13 to 9/30/13 community • Assess interest for advanced training in solicitation wind -hydro -diesel O&M Occurs in Phase 1 • Provide Community information about vocational training opportunities in wind - hydro -diesel O&M • Detailed energy • Project Management 911113 to 12131114 resource analysis • Evaluate existing power plants, electrical distribution system, and geotechnical data • Evaluate condition and acceptability of existing controls and switchgear for compatibility with a wind system • Identification of • Project Management 11/1/14 to 11130114 land and regulatory • Address site ownership and regulatory issues issues, if any • Permitting and • Project Management 1111115 to I V31114 environmental • Contact USFWS, FAA, DOD, ACMP, and SHPO analysis for approval of conceptual design • Assess and document any issues with wetlands or telecommunications, including mitigation efforts planned if necessary • Document community sentiment regarding visual or sound issues • Detailed analysis of • Project Management 12/1/14 to 1/31/15 existing and future • Review historical power plant and electrical energy costs and consumption data markets • Identify planned or proposed future growth load for community • Assessment of Project Management 2/1/75 to 2/28/15 Alternatives • Compare productivity of different wind turbines and configurations for local wind regime. Consider penetration level benefits vs complexity. • Compare and contrast complicity of equipment and wind penetration systems with capacity and interest of community to operate and maintain AEA13-006 Grant Application Page 6 of 20 Atka Renewable Energy Fund Round 6 � Grant Annlication ®WORD ENERGY AUTHORITY • Provide community with clear picture of options available to them for wind -hydro - diesel power production — solicit input into decision • Conceptual design • Project Management 211/15 to 5131115 analysis and cost • Concept design and cost estimates estimate • Detailed economic • Project Management 3/1/15 to 5131115 and financial • Calculate rate for electricity that displaces analysis diesel through the heat recovery system • Conceptual • Project Management 5/1/15 to 6130115 business and • Business and Operations Plan developed for operations plans wind -hydro -diesel power plant with participation from community. Meet with City Council to discuss and formalize. • Final report and • Project Management 7/1/15 to 9/30/15 recommendations • Community Meeting to Present Plan and • Final Grant Report to AEA 3.3 Project Resources Describe the personnel, contractors, accounting or bookkeeping personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. The City of Atka City Administrator will De responsimu 1U1 111IPMA I ICI ILdL1U11 011u successful completion of the project. A qualified firm will be hired to do the work on the study. The City of Atka will follow its procurement and bid policies as far as selecting firms and purchasing equipment, supplies, and materials. Selection of consultant and 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 Aleutian region and project costs. Others that may be involved in the completion of this project are Atka Pride Seafoods, Aleutian/Pribilof Islands Community Development Association, Aleutian Region School District, Atxam Corporation, and Atka IRA Council 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. _11 The Atka City Administrator will be the projeci liaison ana cUI ILaL;L PfW bUI I a111V11y all parties. The position will help coordinate all project team communications, meetings, AEA13-006 Grant Application Page 7 of 20 Atka Renewable Energy Fund Round 6 ®�i=1+i,�''A___, Grant Application ENERGYA--ORITY and disseminate information on a routine basis. Communication will De Dy pnone, email, and written reports. The Administrator will be responsible for all periodic progress and financial reports and other information requests to be submitted to the AEA. Regular contact will be maintained with the contractors throughout the project. Issues to be tracked include scope clarifications, progress relative to budget, schedule, data recovery, and health and safety. Project matching funds will be used. 3.5 Project Risk Discuss potential problems and how you would address them. Logistics and extreme adverse weather conaltions nave caused deiay5 ii I t:vGl y P, VJV"L undertaken in Atka. This is anticipated and is built into the project schedule. SECTION 4 — PROJECT DESCRIPTION AND TASKS • The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. For pre -construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application. According to AEA Atka is a prime location Tor the aeveiopmenn UI wn Iu PUMVI VVILI I being class 6-7 winds. Analysis of wind direction and speed are a part of this study. Collection and analysis of data is necessary. There are other options that could be studied including geothermal, tidal, and additional hydro. Wind appears to be the least expensive and easiest of the available options. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The City of Atka owns and operates the eiectncai umiry. 11It! uunLy acIvUS'JL IIUQIU�,,.,u,, 7 commercial, 6 State/Federal facilities, and 16 community facilities customers. The shore -based seafood processor operates their own generators to power the plant. There are two 125 KW and one 75 KW John Deere diesel generators used for City power generation. A 283 KW hydro -electric system was recently completed. The City has used an average of 40,000 gallons per year of diesel #2 for electrical generation for AEA13-006 Grant Application Page 8 of 20 Atka Renewable Energy Fund Round 6 ® p Grant Application 0 GENE) ENERGY AUTHORITY t the last two years. There is no history as yet of how much diesel will ae usea annually with the hydro -plant online. The utility's power distribution system is all underground 3- phase wire operating at 12,470 volts grounded Y. Operations have been without the addition of the Atka Pride Seafoods plant. They have been operating their own diesel generators. Atka Pride Seafoods reports they operate one 240 KW Kumatsu and one 250 KW Cummings diesel generator units that are not paralleled. A third 240 KW Cummings generator unit and switchgear to parallel all generators is being added in Fall 2013. APS further reports that have consumed about 45,000 gallons of #2 diesel since the plant restarted operation in May, 2012. Atka Pride Seafoods supports this project and intends to use power provided by the renewable energy projects. 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. A recently completed hydro -electric plant will operate Ten months 01 aim yCai. I I1c uIrou plant will go online when there is insufficient water to power the hydro turbine. The diesel plant may be operated along with the hydro plant when the demand is exceeds the capacity of the hydro plant as is projected to occur at times when the processing plant is operating. This project is being done to determine the feasibility of wind generated power to be used in conjunction with hydro power to support electric heat and expanded seafood processing plant operations. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. City generated electricity is proviaea to resiaenuai, cornrnei Udl, bU 1VVI, all IJVI L, al 14 L,uNI facilities. APS operates their own generators to power the seafood processing plant. With the availability of hydro -power, APS will begin to use the community power source. However, the hydro plant will not be able to supply all of the power APS needs. APS plans to expand to a year round operation in 2014-2015 and will have a larger plant that will operate year-round. Wind power will lower costs of energy to the seafood processing plant. Additionally, diesel fuel is still relied on to provide heating to the community. The availability of wind power will allow for use of electric heat and will reduce the cost of energy to community members. AEA13-006 Grant Application Page 9 of 20 Atka Renewable Energy Fund Round 6 41111111D Grant Application 411111119--) ENERGY AUTHORITY 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 Information about the proposed system and design will be included in the planned reconnaissance and feasibility study. 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. There are several potential sites where wina turpines might De iocaieu. JUIIM UI LIICJG Nal are already owned by the City of Atka. Other sites are owned by Atxam Corporation, the local ANCSA corporation for Atka. No land ownership problems are anticipated. The City of Atka will approach Atxam Corporation to see if a trade of parcels can be made. This has been successfully accomplished for other local projects. The potential sites will be assessed and a final site selected as part of the reconnaissance and feasibility study. 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 AEA13-006 Grant Application Page 10 of 20 Atka Renewable Energy Fund Round 6 0®n �_ _iiiw_ , Grant Application MONE)ENERGY AUTHORrrY Permits required will be identified in the study. Potential permits required of the project may include: Threatened Species (U.S. Fish & Wildlife) The USFWS is concerned about bird kills caused by birds flying into wind turbines, towers and guy wires. They have not adopted a formal position against installing wind turbines. Atka is in the Aleutians Maritime Wildlife Refuge with has some jurisdiction over what occurs on the island. Telecommunication Impacts (National Communications Information Administration and the National Weather Service) Wind turbines may interfere with communications signals by generating electromagnetic noise and/or creating physical obstructions that distort communications signals. 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 The feasibility study will address any environmental or lams use issuMl. FULVIM01 10OuIU-0, depending on site selected, may include threatened or endangered species, habitat, wetlands, archaeological, telecommunications interferences and aviation considerations. 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 AEA13-006 Grant Application Page 11 of 20 Atka Renewable Energy Fund Round 6 j= A I -. Q_- Grant Anolication 0111111U) ENERGY AUTHORITY • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system 1 I LI- L ..A n; The cost of constructing this project Is not Known ana win rye uiciuuuu d� PCII L VI II IV Otuuy. IVb APS is one of the beneficiaries, they will be approached to provide a portion of the funding needed. 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.) Information concerning anticipated U&M costs will be proviaeo in the iedsIuuuy sLuuy. Operation costs will be covered by charges for electric services. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant -funded --project Power generated by the system will be maae avallaole ror purcndbe w. I CbIUVI IL V01 %J«I.0 ql IU Federal facilities, commercial facilities, public facilities, and Atka Pride Seafoods. 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 Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. To be determined by stuay. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) a) Existing Energy Generation and Usage Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other 4 (City only) 75KVV, 2 ea. 125 KVV, 283 KVV (hydro) John Deere (diesel); Osseberger (hydro turbine) ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type 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 Page 12 of 20 Atka Renewable Energy Fund Round 6 0®_cy Grant Application ENERGY AUTHORITY iv. Age of generators/boilers/other 7+ years (diesel); 7 years unused (hydro) v. Efficiency of generators/boilers/other 8-12 b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $38,852 (FY12 — City only) ii. Annual O&M cost for non -labor $231,634 (FY 12 — City fuel and other expenses) $243,450 (APS Fuel only) 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] 465,000 (City) ii. Fuel usage Diesel [gal] 40,000 (City) 45,000 (APS) Other iii. Peak Load 115 (City) 250 (APS) iv. Average Load 98 (City) v. Minimum Load vi. Efficiency 8-11 vii. Future trends Increased demand beyond what the new hydro can supply. d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 45,000 gal. ii. Electricity [kWh] 2,000 kWh iii. Propane [gal or MMBtu] 0 iv. Coal [tons or MMBtu] 0 v. Wood [cords, green tons, dry tons] 0 vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity Wind (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] To be determined by study ii. Heat [MMBtu] To be determined by study c) Proposed annual fuel usage (fill in as applicable) To be determined by study i. Propane [gal or MMBtu] 0 ii. Coal [tons or MMBtu] 0 iii. Wood [cords, green tons, dry tons] 0 iv. Other 0 Project Cost AEA13-006 Grant Application Page 13 of 20 Atka Renewable Energy Fund Round 6 z Grant Application W 4MMID ENERGY AUTHORITY a) Total capital cost of new system b) Development cost c) Annual O&M cost of new system d) Annual fuel cost Project Benefits To be determined by study To be determined by study To be determined by study To be determined by study a) Amount of fuel displaced for i. Electricity Est. 185,000 gal. ii. Heat Est. 35,000 gal. iii. Transportation To be determined by study b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits FPower Purchase/Sales Price a) Price for power purchase/sale Project Analysis 5.41 per gallon (#2 diesel); $7.91 (#1 diesel for heat) To be determined by study To be determined by study To be determined by study a) Basic Economic Analysis (per AEA — Highly Attractive Wind Opportunities) Project benefit/cost ratio 1.69 Payback (years) 15 4.4.5 Proposed Biomass System Information Please address the following items, if know. (For Biomass Projects Only) NA • What woody biomass technology will be installed (cord wood, pellets, chips, briquettes, pucks). • Efficiency of the biomass technology. • Thermal or electric application. Boiler efficiency. Displaced fuel type and amount. Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture AEA13-006 Grant Application Page 14 of 20 Atka Renewable Energy Fund Round 6 n i nrr Grant Application ENERGY AUTHORITY percentage. • Estimated cords of wood to be used per year, specify whether dry or green and the moisture percentage. • Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the biomass resource? • Inventory data. How much biomass is available on an annual basis and what types (species) are there, if known? SECTION 5— PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non -economic public benefits to Alaskans over the lifetime of the project Potential Annual Fuel Displacement — 12U,UUU gallons or zl�b4a,uuu annuaiiy. No rates, tariffs, or agreements are in place. The reconnaissance and feasibility study will determine what these will be. As a municipality, the City of Atka does not pay taxes. The community of Atka and Atka Pride Seafoods would like to be less dependent on the variable price of diesel fuel, have a reliable energy source, lessen the environmental risks of fuel transport and storage hazards by requiring less diesel fuel to power their community. 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 City of Atka currently operates the power plant and electrical distribution system In Atka and supplies power to the entire community with the exception of Atka Pride AEA13-006 Grant Application Page 15 of 20 Atka Renewable Energy Fund Round 6 = n t ,Q-y- Grant Application 4ONE--)ENERGY AUTHORITY Seafoods. Operations and maintenance costs, loan and interest payments for the hydro, and retirement and replacement funds are incorporated into the rates charged to customers. Specific projected O & M costs will be determined once specifications are developed for the wind turbines to be installed as a result of this study. Atka Pride Seafoods presently operates their own power plant because the City does not have the capacity to supply the power needed. APS will purchase part of their power needs from the City from hydro generated electricity. APS desires to be totally out of the power business and would buy all power from the City of Atka if it were available. There will be a learning curve in operating the proposed wind -hydro -diesel system. Adequate training and support will be budgeted during additional phases. 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 City of Atka recently completed the Chunixsax LreeK Hyaro-tlectnc project in September 2012. The need for additional energy to support the local processing plant so important to Atka's economy is what is driving this application. There is wind in abundance that could be harnessed to meet the needs of the community. If promptly notified that funds are abvailable, work can begin on this project at July 1, 2013. The work will be contracted out to a qualified firm who will be solicited through a competitive process. No grants have been previously awarded for the proposed wind power project. However, funding for the Atka hydro -electric project that were managed by the City of Atka came from the following sources: • Alaska Energy Authority Renewable Energy Fund • US Rural Utility Services • US Economic Development Administration • Aleutian/Pribilof Islands Community Development Association • City of Atka The project cost in excess of $5 million (including in -kind). A single audit was done for FY11 with no adverse grant findings. The Denali Commission also provided funding during the earlier phases of the hydro project but the funds were managed by the Alaska Energy Authority. AEA13-006 Grant Application Page 16 of 20 Atka Renewable Energy Fund Round 6 = p l era& A M ........... Grant Application 4111111111111ED ENERGY AUTHORITY SECTION 8— LOCAL SUPPORT 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. No opposition is anticipated. A letter of support trom HtKa Prue Seafoods Is attacnea w this application along with a resolution from the City of Atka. 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. RF(-nN>UAPrAN('F,4TTTT)Y— PHASE I f Y Source of Matching Milestone or Task Anticipated Completion RE- Fund Grantee Matching Funds: Cash/In- TOTALS Date Grant Funds Funds kind/Federal Grants/Other State Grants/Other 1. Project scoping and 9/30/13 $2000 $1250 City of Atka $3250 contractor solicitation 2. Resource identification and 10/31/13 $10,000 $1250 City of Atka $11,250 analysis 3. Land use, permitting, and environmental analysis 11/30/13 $5000 $1250 City of Atka $6250 4. Preliminary design analysis 2/28/14 $12,000 $1250 City of Atka $13,250 and cost 5. Cost of energy and market analysis 3/31/14 $8000 $1250 City of Atka $9250 6. Simple economic analysis 3/31/14 $8000 $1250 City of Atka $9250 7. Final report and recommendations 5131/14 $15000 $1250 City of Atka $16,250 TOTALS $60,000 $8750 $68,750 Budget Categories: Direct Labor & Benefits $ $5750 Cit of Atka $5750 Travel & Per Diem $ $2000 City of Atka $2000 Equipment $ $ $ Materials & Su lies $ $ $ Contractual Services $60,000 $ $60,000 Construction Services $ $ $ Other $ $ $ TOTALS $60,000 $8750 $68,750 AEA13-006 Grant Application Page 17 of 20 Atka Renewable Energy Fund Round 6 ®p �_�'rp ^� Grant Application MEE-3 ENERGY AUTHORITY FF.ASIRIT,TTYSTUDY— PNASF, TI 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 1. Project scoping and contractor solicitation. 9130/13 $ $ City of Atka $ Included in Phase I 2. Detailed energy resource analysis 12/31/14 $12,000 $31,250 City of Atka APICDA $43,250 3. Identification of land and regulatory issues, 11/30/14 $6000 $1250 City of Atka $7250 4. Permitting and environmental analysis 12/31/14 $8500 $1250 City of Atka $9750 5. Detailed analysis of existing and future energy costs and 1/31115 $7500 $1250 City of Atka $8750 markets 6. Assessment of alternatives 2/28/15 $5000 $1250 City of Atka $6250 7. Conceptual design analysis and cost estimate 5/31/15 $15,000 $1250 City of Atka $16,250 8. Detailed economic and financial analysis 5/31/15 $8000 $1250 City of Atka $9250 9, Conceptual business and operations plans 6/30/15 $6750 $1250 City of Atka $8000 10.Final report and recommendations 9/30/15 $20,000 $1250 City of Atka $21,250 TOTALS $88,750 $11,250 $130,000 Budget Categories: Direct Labor & Benefits $ $9250 City of Atka $9250 Travel & Per Diem $ $2000 City of Atka $2000 Equipment $ $30,000 APICDA $30,000 Materials & Supplies $ $ $ Contractual Services $88,750 $ $88,750 Construction Services $ $ $ Other $ $ $ TOTALS $88,750 $31,250 1 $130,000 AEA13-006 Grant Application Page 18 of 20 Atka 09/21/2012 14:35 FAX cityatka [7j0002/0003 09/21/2012 10:57 FAX 907 522 0385 city of atka admin Z0002/0010 Renewable Energy Fund Round 6 Grant Application �� ENERGY XYFHOMY 777777 ,SECTION 1.0 — AUTHORIZED SIGNF.RS+VW Community/Grantee Name: City of Atka Regular Election is held: Date: September 20, 2012 1st Tuesday in October —a /_...-4 Printed Name Name Title Term Si nature Christopher Maly Mayor 10/2/2012 Julie Dirks City Administrator NA " I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Christopher Maly Mayor 10/2/2012 �7laINUM %.0%j saw — Mailing Address: 750 W. Dimond #202 Anchorage, AK 99515 Phone Number: 907-522-0384 Fax Number: 907-522-0385 E-mail Address: dirks'uliea ggmail.com Federal Tax ID #: 92-0126898 Please submit an updated form whenever there is a change to the above information. AEA13-OW Grant Application Page 19 of 20 7/3/2012 09/21/2012 14:36 FAX cityatka 160003/0003 09/21/2012 10:58 FAX 907 522 0385 city of atka admin U 0003/0010 Renewable Energy Fund Round 6 Grant Application ®w aENERGYAim+onrnr S T1ON 1 i — ADDITIONAI. ©OCU.N EI A 1EJf ►L ff if ATI ON :.. SUBMIT THE Ft3LLO� 4AITSY�ittTH.If#�.IJR-Al'P1lx 3 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. C. 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 connect, 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 Marne Christopher Maly Signature title Mayor Date September 20, 2012 AEA134)06 Grant App9cation Page 20 of 20 7i312012 09/21/2012 14:34 FAX cityatka 0 0001/0003 09/21/2012 10:56 FAX 907 522 0385 00o city of atka admin 0 0001/0010 City of Atka City Office: PO Box 47070 * Atka, Alaska 99547 * Phone: 907-839-2233 ' Fax: 907-839-2234 Administrator: 750 W, Dimond Blvd. #202 * Anchorage, Alaska 99515 * Phone: 907-522-0394 * Fax: 907-522-0385 RESOLUTION 13-534 A RESOLUTION OF THE ATKA CITY COUNCIL AUTHORIZING SUBMISSION OFAN APPLICATION FOR FUNDING TO COMPLETE A RECONN41SANCEAND FEASIBILITYSTUDYTO THEALASKA ENERGYAUTHORIIYRENEWABCE ENERGHY FUND ROUND 6. WHEREAS, the City of Atka is the owner/operator of the electric utility in Atka; and WHEREAS, residents presently pay $7.91 per gallon for heating fuel and would like to have access to less expensive clean energy, and WHEREAS, the Atka Pride Seafoods is planning an expansion and will become a year-round operation with increased energy needs; and WHEREAS, with the community being a partial owner of Atka Pride Seafoods, operating costs have an impact on local residents earnings and the local economy; and WHEREAS, the addition of the recently completed Chunixsax Creek hydra electric project will not be sufficient to meet future energy demands; and WHEREAS, Atka is located in an area with high potential for development of abundant renewable energy resources that could provide clean, less expensive energy to the community NOW THERFORE BE IT RESOLVED that the Atka City Council authorizes submission of a grant application to the Alaska Energy Authority Renewable Energy Fund, Round 6; and BE IT FURTHER RESOLVED that the City of Atka approves providing up to $20,000 in -kind match and/or cash to the project; and BE IT FURTHER RESOLVED that either the Mayor or City Administrator have authority to execute all documents related to this project; and BE IT FURTHER RESOLVED that the City Administrator is appointed the point of contact and project manager for the proposed project; and BE IT FURTHER RESOLVED that the City of Atka is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. APPROVED the 24' day of September, 2012. Signed, Christopher Maly, Mayor ATTEST: vasha Nevzoroff, erk APICA Hagireaa Kilo- • Ff tng to Grow Aleutian Pribilof Island Community Development Association 234 Gold Street - Juneau, Alaska 99801 - (907) 586-0161 - Fax: (907) 586-0165 717 K Street, Suite 100 - Anchorage, Alaska 99501 - (907) 929-5273 - Fax: (907) 929-5275 September 20, 2012 City of Atka PO Box 47070 Atka, Alaska 99547 RE: LETTER OF SUPPORT — WIND POWER FEASIBILITY STUDY I am writing to express support for a funding application being submitted by the City of Atka to do reconnaissance and feasibility studies for wind power generation in Atka. As you know, APICDA's wholly owned subsidiary, APICDA Joint Ventures, Inc., owns fifty percent of the local seafood processing plant in Atka — Atka Pride Seafoods — with the other fifty percent owned by the Atka Fishermen's Association. In 1997 during the feasibility phase of the Chunixsax Creek hydro -electric project, we had extensive conversations with Earle Ausman of PolarConsult. At that time the power capacity of the hydro -electric project appeared to be more than sufficient for future growth. Today, however, we find that the hydro -electric plant will not generate sufficient power to support Atka Pride Seafoods energy needs. The plant was expanded in 2010, and another expansion is planned for 2014-2015 with the plant moving to year-round operations. APS has plans for major increases in production capacity. Plans and pro -forma bottom line are heavily affected by energy cost. APS would prefer to purchase power from the local utility at a lower cost than we can produce power using expensive fossil fuels. We strongly support the City of Atka's proposal. ed, Larry C er, CEO