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HomeMy WebLinkAboutMKI-AEARound6-FinalSignedRenewable Energy Fund Round 6 Grant Application AEA 13-006 Application Page 1 of 26 7/3/2011 Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round 6 of the Renewable Energy Fund. An electronic version of the Request for Applications (RFA) and this form are available online at: http://www.akenergyauthority.org/RE_Fund-6.html  If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at scalfa@aidea.org.  If you are applying for grants for more than one project, provide separate application forms for each project.  Multiple phases for the same project may be submitted as one application.  If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for each phase of the project.  In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 ACC 107.605(1).  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted.  If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER:  Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply.  All applications received will be posted on the Authority web site after final recommendations are made to the legislature.  In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 2 of 26 7/3//2012 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Metlakatla Indian Community (MIC) Type of Entity: MIC is a federally recognized Indian Tribe organized under the provisions of Section 16 of the Indian Reorganization Act, 25 U.S.C. Section 476. Electric power is provided to the community by Metlakatla Power & Light (MP&L), a community owned utility. Fiscal Year End September 30, 2012 Tax ID # 92-0014579 Tax Status: For-profit or X non-profit ( check one) Mailing Address P.O. Box 8 Metlakatla, AK 99926 Physical Address 8th and Upper Milton Street Metlakatla, AK 99926 Telephone 907-886-4441 Fax 907-886-4471 Email 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name C. Paul Bryant Title General Manager Metlakatla Power and Light Mailing Address P.O. Box 359 Metlakatla, AK 99926 Telephone 907-886-4451 Fax 907-886-3313 Email cpaulbryant@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) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or A local government, or X A governmental entity (which includes tribal councils and housing authorities); 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. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 3 of 26 7/3//2012 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) Metlakatla-Ketchikan Intertie 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. The Metlakatla – Ketchikan Intertie will include an overhead transmission line on Annette Island between Metlakatla and Walden Point and a submarine cable crossing of Revillagigedo Channel between Walden Point on Annette Island and Mountain Point on Revillagigedo Island. The Metlakatla-Ketchikan Intertie will provide benefits to both Ketchikan and Metlakatla, allowing for significantly improved utilization of Metlakatla’s existing hydroelectric generating resources while reducing diesel generation in Ketchikan. 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. Metlakatla is located at 55.127⁰N and 131.576⁰W 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Metlakatla, Ketchikan and potentially other communities connected to the grid of the Southeast Alaska Power Agency. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river X 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 X Design and Permitting Feasibility X Construction and Commissioning Conceptual Design Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 4 of 26 7/3//2012 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The proposed Metlakatla-Ketchikan Intertie is a 34.5-kV transmission line that will interconnect the electric systems of Metlakatla Power & Light (MP&L) and Ketchikan Public Utilities (KPU). The Intertie will include 14 miles of overhead wood pole transmission line to be constructed on Annette Island between Metlakatla and Walden Point and an approximate three mile submarine cable crossing of Revillagigedo Channel between Walden Point and KPU’s Mountain Point Substation. The project will also include control system upgrades to allow for the integrated operation of the interconnected systems’ generating plants. Final design of the Metlakatla – Ketchikan Intertie is underway. Construction of the line began in June 2010 and all poles are set for the overhead line. Approximately 20% of the conductor is installed along the line. The control system upgrades were completed in July 2011. 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 Metlakatla-Ketchikan Intertie will allow for the transmission of surplus hydroelectric energy available on Metlakatla to Ketchikan where the energy will be used to offset diesel generation. At the present time, the amount of available surplus hydroelectric generation is approximately 3,000,000 kWh per year. This amount of energy would offset approximately 210,000 gallons of diesel fuel per year in Ketchikan. At $3.85 per gallon, this would result in savings of about $815,000 per year in power production costs. This cost savings is expected to be shared by electric consumers in both Metlakatla and Ketchikan. The reduction in pollutants emitted from diesel oil combustion will provide benefits to the general public and the regional environment. In addition, the project will provide greater interconnected system reliability and will allow for the development of future hydroelectric and renewable energy generation projects on an integrated, regional basis. For example, potential hydroelectric resources on Annette Island, such as the Triangle Lake project, can be developed if deemed economically viable with a larger market for the power output. With the Metlakatla-Ketchikan Intertie and the recently completed Swan-Tyee Intertie, the electric systems of Metlakatla, Ketchikan, Petersburg and Wrangell will all be interconnected. An important benefit to the Ketchikan area will be that the Metlakatla – Ketchikan Intertie will provide power from a source that is not dependent on the existing transmission line to Swan Lake. When the Swan Lake transmission line is unavailable for any reason, Ketchikan is isolated from much of its hydroelectric generation. The Intertie will still be available to provide power from an alternative direction and as such, adds another source of backup generation in the event of failure of the Swan Lake transmission line. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 5 of 26 7/3//2012 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The total estimated cost of the Metlakatla – Ketchikan Intertie through construction is $14,510,599. MIC has received grants of $500,000 from the Denali Commission, $2,000,000 from the Alaska Energy Authority and $2,000,000 from the State of Alaska towards the Intertie project. MIC has also contributed $440,165 through MP&L towards costs of construction of the project to date. MIC is requesting a grant of $9,570,434 from the Renewable Energy Fund program. No other funds are presently available for the Intertie project. 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. $ 9,570,434 2.7.2 Cash match to be provided $ 0 2.7.3 In-kind match to be provided $ 0 2.7.4 Other grant applications not yet approved $ 0 2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $ 9,570,434 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) $ 14,510,599 2.7.7 Estimated Direct Financial Benefit (Savings) $ 815,000 per year 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.) $ Not Available Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 6 of 26 7/3//2012 SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. The Project Manager for the Metlakatla-Ketchikan Intertie will be selected with assistance from the Alaska Energy Authority. Consultants and contractors will be retained as needed. No project management assistance will be needed from AEA or any other government entity. 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. Milestones Tasks Start Date End Date Control system upgrades Install upgrades to MP&L control systems Oct 2010 July 2011 Overhead line Install poles June 2010 Oct 2011 Overhead line Install conductor June 2012 Oct 2013 Order submarine cable July 2013 Install submarine cable Aug 2014 Engineering and design June 2010 June 2012 Permitting Jan 2012 Dec 2012 Construction June 2010 Aug 2014 Interconnection agreements Negotiate power sales and other agreements Mar 2012 Sep 2013 Initial commercial operation Nov 2014 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 7 of 26 7/3//2012 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. At the present time, Electric Power Systems, Inc. (EPS) has been retained to provide engineering and design services related to the overhead transmission line between Metlakatla and the ferry terminal on Walden Point. EPS has also been retained to design the power plant control system upgrades, provide specifications for the submarine cable and design the submarine cable termination facilities. Poles and hardware have already been ordered for the transmission line to the ferry terminal. MIC will retain other consultants and engineers as needed to provide design, permitting and construction services. These contractors will be retained through a process of solicitation of proposals, evaluation of proposals by MIC and MP&L and final selection by MIC. 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. MIC will provide written monthly summary reports of progress on the project. The monthly reports will include status of activities presently underway, selection of contractors, budget status and schedule progress. Achievement of milestones will be reported as will commitments for material and construction services procurement. In addition, MIC will provide ongoing status reports on its website and will remain in regular telephone contact with the Authority’s project representative. 3.5 Project Risk Discuss potential problems and how you would address them. The Metlakatla-Ketchikan Intertie is a low risk project. There is some uncertainty with regard to conditions of the seafloor at the location of the submarine crossing at the present time. Various studies including a bathymetric survey and shoreline investigations will be conducted early in the design process to determine the best location for the cable. These studies will also help identify key factors to be used in the specifications for the submarine cable, such as armoring. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 8 of 26 7/3//2012 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. The hydroelectric energy resources available in Metlakatla at the present time are the 1.0 MW Chester Lake project and the 3.0 MW Purple Lake project. The two plants are capable of generating 24,043 MWh per year on average of which about 3,000 MWh is presently estimated to be surplus to the needs of MP&L. Studies have been conducted in the past that have identified potential expansions to the existing hydroelectric facilities as well as a new hydroelectric facility at Triangle Lake. It is estimated that these potential new hydroelectric resources could generate an additional 20,700 MWh on an average annual basis. Ketchikan Public Utilities (KPU) owns and operates 11.7 MW of hydroelectric generating capacity at three separate facilities located relatively close to Ketchikan and 23.0 MW of diesel generation capacity located in its Bailey power plant. The 22.5 MW Swan Lake hydroelectric project, owned by the Southeast Alaska Power Agency (SEAPA), is also available to KPU and provides a significant amount of the total power supply requirement in Ketchikan. The total amount of energy available from the Swan Lake project and KPU-owned hydroelectric resources is about 137,000 MWh on an average annual basis. The Swan-Tyee Intertie (STI) was completed by SEAPA in late 2009. This transmission line interconnects the electric systems of Ketchikan, Wrangell and Petersburg and provides for the delivery of power from the 22.5 MW Tyee Lake hydroelectric project to Ketchikan. A significant amount of the generating capability of the Tyee Lake project has been surplus to the needs of Petersburg and Wrangell in the past. With the STI, surplus generation from the Tyee Lake project will be available to KPU to offset some of KPU’s diesel generation. To the extent that the combined hydroelectric resources are not sufficient to supply the entire power supply requirement at any time, diesel generation will continue to be used as a supplement. With the high price of heating oil, there is a significant change to the use of electric space heat by the residential, commercial and public building customers in Ketchikan. The switch to electric space heat is causing a noticeable increase in electric loads and as a result, more demand is being placed on KPU’s diesel generators to meet the growing need for electricity. The present cost of diesel generation in Ketchikan is estimated to be approximately 28 cents/kWh, a cost that is much higher than was experienced just a few years ago when fuel prices were lower. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 9 of 26 7/3//2012 The primary purpose of the Metlakatla – Ketchikan Intertie will be to make additional existing hydroelectric generation available to serve loads in Ketchikan. KPU has evaluated several alternative energy resources in recent years including the Whitman Lake and Mahoney Lake hydroelectric projects, a municipal solid waste to energy project, bio-diesel generation, and new diesel generators. KPU has also considered the Metlakatla-Ketchikan Intertie among the power supply options available to it for many years. Provision was made in the design of KPU’s Mountain Point substation for eventual connection to MP&L’s system. There are many advantages to the Metlakatla-Ketchikan Intertie when compared to the other alternatives being considered. Principal among the benefits of the Intertie are that it provides for the use of existing surplus hydroelectric energy generation capability. As such, no fuel of any kind is needed and the environmental impacts of the Intertie are very low compared to building new generating plants. In using hydroelectric energy to supplant diesel generation, the Intertie project will reduce CO2 and NOx emissions in the region. Further, the reduction of diesel generation will reduce the amount of diesel fuel that must be barged into Ketchikan thereby providing an incremental reduction in the probability of fuel spills and other fuel handling mishaps. A noticeable benefit of the Intertie project will be that it will provide clean, hydroelectric energy to Ketchikan that can then be used to offset the use of oil for space heating. Many residents, schools and businesses in Ketchikan are considering converting to electric space heat but the high cost of electricity produced with diesel generation is a deterrent to this transition. Replacing oil heat with electric heat will reduce the amount of pollutant emissions in the area including CO2, SO2 and NOx. 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 electric system in Metlakatla includes 4.0 MW of hydroelectric capacity and 3.3 MW of diesel generating capacity. The diesel generator, a 4,500 hp Caterpillar unit, is used primarily as a backup emergency reserve. A 1.0 MW Battery Energy Storage System (BESS) was installed in 1997 to provide emergency backup power for a limited time as well as balance out frequency and voltage fluctuations on the MP&L system. The Chester Lake hydroelectric project was constructed in 1986. It includes a 40 foot high concrete arch dam, a 20 inch diameter steel penstock approximately 3,521 feet long and a powerhouse with a single 1,042-kW Pelton turbine generating unit. The Purple Lake hydroelectric project is comprised of a dam, reservoir, tunnel, penstock and powerhouse containing three horizontal Francis type turbine generating units, each rated at 1,000- kW during normal operation. The project was originally built in 1956, however a new control system was installed in 1997, the generators were all rewound in the 1990’s and the turbine runners were refinished in the 1990’s as well. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 10 of 26 7/3//2012 The existing generating units in Ketchikan are shown in the following table: Year Installed Rated Capacity(kW)(1) Energy Generation Capability (MWh)(2) KPU Owned Hydroelectric Silvis Lake 1968 2,100 10,300 Beaver Falls Unit #1 1947 1,000 37,800 (3) Beaver Falls Unit #3 1954 2,200 - Beaver Falls Unit #4 1954 2,200 - Ketchikan Unit #3 1923 1,400 18,000 (3) Ketchikan Unit #4 1938 1,400 - Ketchikan Unit #5 1957 1,400 - Subtotal 11,700 66,100 Swan Lake Hydroelectric 1983 22,500 71,400 KPU-Owned Diesel(4) Bailey Unit #1 1970 3,500 - Bailey Unit #2 1970 3,500 - Bailey Unit #3 1976 5,500 - Bailey Unit #4 1998 10,500 - Subtotal 23,000 - Total 57,200 137,500 (1) The rated capacity may exceed the normal maximum operating capacity from the generating units. (2) Energy generation capability for hydroelectric resources is based on average water conditions and load levels similar to those experienced in 2000. Hydroelectric energy generation varies from year to year. (3) Energy generation for the KPU-owned hydroelectric resources is not differentiated by unit. (4) Diesel generators are shown as capacity resources only, although they are used to provide energy supplemental to that provided by the hydroelectric facilities. At a 70% annual plant factor, the annual energy generation capability of the four diesel units is 141,040 MWh. 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. At the present time, MP&L uses its hydroelectric generating resources, the Chester Lake and Purple Lake projects, to meet its own load. Additional energy generation capability, surplus to the needs of MP&L, exists at these plants. In Ketchikan, KPU fully utilizes the generating capability of its City-owned hydroelectric generating facilities. Power is then purchased from the Swan Lake and Tyee Lake projects to meet the remaining energy requirement. At certain times, the generating capability of the combined hydroelectric facilities is insufficient to supply the total load in Ketchikan. This hydroelectric shortage can actually last for an extended time if local precipitation is low. During the times when hydroelectric energy is insufficient, diesel generation is used to meet the remaining load requirement. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 11 of 26 7/3//2012 With the Metlakatla-Ketchikan Intertie, additional hydroelectric energy generation will be available to KPU to supply loads and avoid all or a portion of the amount of diesel generation that would be needed otherwise. Another advantage of the Intertie will be that the power production systems of MP&L and KPU will become interconnected. As such, the hydroelectric facilities of the two utilities can be operated in a coordinated fashion so as to maximize the capability of all the facilities. This operating improvement is typical of larger systems where individual generating units can be operated within their most efficient ranges and the various reservoirs can be operated most effectively. With the Metlakatla-Ketchikan Intertie and the Swan-Tyee Intertie, a significantly larger southern Southeast Alaska interconnected electric system will exist. The various hydroelectric facilities within this four community system can be operated on an integrated basis for overall maximum efficiency. Reliability in the four communities will be improved through additional backup options and maintenance on various generating units and transmission lines can be effectively coordinated to reduce outage impacts to electric consumers. Further benefits can be gained with incorporation of fiber communication strands in the submarine cable as well as in the overhead transmission line. This can provide very high speed communications systems to residents and businesses on Annette Island. Fiber optic cables are typically bundled into electric submarine cables. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. In 2011, the total energy sales in Metlakatla were 18,711 MWh of which 8,455 MWh, or 45%, was to residential customers. As previously indicated, the total annual hydroelectric energy generation capability of the existing hydroelectric resources in Metlakatla is about 24,000 MWh. Total energy sales in Ketchikan in 2011 were about 164,700 MWh. Energy sales in Ketchikan are expected to increase noticeably in the immediate future as various residential, public authority and commercial customers switch to electric heat in response to continuing high oil prices. The Metlakatla-Ketchikan Intertie will contribute to lower power costs in Ketchikan. As a municipal electric utility, KPU sets rates based on its costs. Lower power costs will mean lower electric rates, a direct benefit to electric consumers. It is expected that the benefits of the Intertie in offsetting diesel generation costs will be jointly shared by Ketchikan and Metlakatla. In Ketchikan, the benefits will mean lower electric rates to consumers. In Metlakatla, the benefits can also mean lower electric rates to electric consumers. The benefits in Metlakatla can also be utilized in paying the costs of repairs, replacements and improvements to MP&L’s electric system. With the Swan-Tyee Intertie in operation, KPU is obligated pursuant to its power purchase contract to use power from the Tyee Lake project, as available, before it makes purchases from Metlakatla. This issue may limit the amount of power KPU can purchase from MP&L. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 12 of 26 7/3//2012 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 The Metlakatla-Ketchikan Intertie will be 17 miles in length and includes overhead and submarine components. The line would originate at KPU’s Mountain Point substation and cross underwater to Walden Point on Annette Island, a cable crossing distance of about three miles. A 14-mile overhead line on Annette Island would extend from the cable landing point to an MP&L substation to complete the system. The line is expected to be sized for a delivery of 8 MW from MP&L resources to KPU. The line is specified at 34.5-kV which is adequate for the anticipated power loads as well as capable of accommodating higher power loads. KPU’s transmission system at the Mountain Point substation is also at 34.5-kV. Overhead conductors for the line are specified to be 1/0 ACSR and the submarine cable is expected to be a three conductor, bundled cable at 34.5-kV, 1/0 AWG. Provision was made at KPU’s Mountain Point substation at the time the substation was constructed for eventual interconnection with MP&L’s system. Not all of the components needed for the interconnection are presently installed, but the substation design is in place and the necessary modification is not expected to be significant from a time or cost perspective. Further, electric conduits are currently installed under the Tongass Highway that can be used for bringing the cable from the shoreline to the substation. Although earlier studies identified a possible route for the portion of the Metlakatla – Ketchikan Intertie on Annette Island following a proposed road alignment to Walden point. At the present time a transmission line is to be built between Metlakatla and the Walden Point ferry terminal along the road to the ferry terminal. This line is being designed for 34.5-kV but unless the Metlakatla – Ketchikan Intertie is developed, it will potentially be operated at 12.47-kV. The transmission line to the ferry terminal will be a part of the Metlakatla – Ketchikan Intertie. Since the road to the ferry terminal is already in place, installation of the overhead transmission line will be much easier than if it were being installed in uncleared forest. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 13 of 26 7/3//2012 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The overhead portion of the Metlakatla – Ketchikan Intertie will be located entirely on Annette Island and as such, MIC will have authority over all aspects related to land ownership and site approval. MIC has approved the Intertie project and will work with its consultants, engineers and advisors to approve the appropriate location for the Intertie. No significant land issues are expected to be found on the Ketchikan side of the submarine cable crossing. KPU has indicated that it will assist MIC with regard to bringing the cable to the Mountain Point substation. 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 Several permits are expected to be needed, all with regard to the placement of the submarine cable. These permits are summarized along with their current status, as follows: o Major Utility Permit (Alaska Department of Transportation and Public Facilities) – Permit will be complete after MP&L and DOTPF sign the proposed permit document. o Easement (Alaska Department of Natural Resources (DNR)) – DNR is processing the application. A memorandum of decision with regard to completeness of the application is expected soon. A 30-day public notice/comment period will start following issuance of the memorandum of decision. o Easement (Alaska Mental Health Trust Authority) – Application is being processed. o Section 10 Permit (United States Army Corps of Engineers) – The Corps has determined that the application is “complete”. A 15-day agency review period is forthcoming which should be followed with issuance of the final permit. Some additional notifications to the State Fire Marshal, the U.S. Coast Guard, NOAA and the Ketchikan Gateway Borough may be needed. It is anticipated that the permitting process will be complete within the next six months. It is noted in nautical charts that cable areas are presently identified in the vicinity of the proposed Intertie submarine cable. To the extent that communication cables are already submerged in these areas, it may be necessary to place the Intertie cable in a slightly different location to avoid contact with the other cables. This will be investigated in the permitting and design effort for the Intertie. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 14 of 26 7/3//2012 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 None of these environmental issues are expected to be applicable to the Intertie project. MIC will assure that the overhead portion of the Intertie meets with all standards on Annette Island. As previously indicated, some conflict with existing submerged telecommunications cables may exist but these conflicts will be addressed in the final design of the Intertie project and are not expected to cause a significant change to the overall project. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:  Total anticipated project cost, and cost for this phase  Requested grant funding  Applicant matching funds – loans, capital contributions, in-kind  Identification of other funding sources  Projected capital cost of proposed renewable energy system  Projected development cost of proposed renewable energy system A cost estimate was prepared in June 2012 for the Metlakatla – Ketchikan Intertie project by EPS, the design engineer for the project. As of June 2012, approximately $340,000 had been spent on engineering and design work for the project. This cost is included in the total cost of engineering and design for the Intertie project. By far the most significant component of cost of the Metlakatla – Ketchikan Intertie is the submarine cable between Annette Island and KPU’s Mountain Point substation. This crossing is approximately two miles in length and the maximum depth of the channel is estimated to be about 550 feet. Submarine cables are specially manufactured for each application and installation requires specialized equipment and labor skills. KPU relatively recently installed a submarine cable between Ketchikan and Gravina Island, a crossing of about one mile. The characteristics of Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 15 of 26 7/3//2012 the cable that KPU used are very similar to what is expected to be used for the Metlakatla – Ketchikan Intertie. The estimated development cost of the Metlakatla – Ketchikan Intertie is summarized in the following table. The amount of the requested grant is $9,570,434. Metlakatla – Ketchikan Intertie Estimated Project Total Cost and Grant Funding Requested Overhead Line - Walden Point Road Line 2,970,500$ Underground Line - Chester Lake to Walden Pt. Line 493,000$ Overhead Rebuild - Centennial to Chester Lake 301,000$ Substation Improvements Centennial Plant, 5 MVA Transformer and Recloser 469,542$ Walden Point, Recloser, OH to Substation 119,647 Mountain Point, Substation to UG, Recloser 229,725 Subtotal - Substation Improvements 818,914$ Submarine Cable Materials 2,204,000$ Installation 3,243,000 Subtotal - Submarine Cable 5,447,000$ Control System Upgrades 1,310,094$ Contractor Mobilization, Demobilization, Per Diem 450,000$ Subtotal - Direct Costs 11,790,508$ Contingency - Non submarine cable 10% 458,341$ Contingency - Submarine cable 25% 1,361,750$ Total Direct Costs 13,610,599$ Indirect Costs Engineering, Design, Permitting 500,000$ Construction Management 300,000 Owner's Administration 100,000 Subtotal - Indirect Costs 900,000$ Total Project Cost 14,510,599$ Less: AEA Grant (Round I) (820,000) Less: AEA Grant (Round IV) (1,180,000) Less: State of Alaska Grant (2,000,000) Less: Denali Commission Grant (500,000) Less: MP&L Contribution to Date (440,165) Net Grant Funding Requested 9,570,434$ Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 16 of 26 7/3//2012 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.) The annual O&M costs for the Metlakatla – Ketchikan Intertie are expected to be relatively minor. Transmission lines of this type typically require very little maintenance in the early years of operation providing the lines are designed properly and danger trees and other hazards are cleared out during construction. It is estimated that annual O&M costs will be $60,000 per year and that an additional $50,000 per year will be needed for capital repairs, improvements and replacements. These costs will be paid through revenues received from power sales over the Intertie. No grant funds will be needed for O&M costs. 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 will be sold over the Metlakatla-Ketchikan Intertie to Ketchikan Public Utilities (KPU). The power sales price will be negotiated between MIC and KPU and is expected to be reflective of the cost of power available to KPU from other alternatives. At the present time, KPU pays 6.8 cents per kWh for Swan Lake and Tyee Lake power that it purchases from SEAPA. Other new hydroelectric alternatives for KPU are estimated to have a cost of power in the range of 7.0 cents per kWh and the cost of diesel generation for KPU is about 28 cents per kWh when diesel fuel is at $3.85 per gallon. It is estimated that the sales price of power over the Metlakatla-Ketchikan Intertie will be in the range of 8.0 to 14.0 cents per kWh. If the proposed Kake-Petersburg transmission intertie is constructed, power from Metlakatla could potentially be sold to Inside Passage Electric Cooperative (IPEC) for use in Kake. Power from Metlakatla to Kake would need to be transmitted over Ketchikan and SEAPA power lines. This will require an agreement among all the parties involved. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 17 of 26 7/3//2012 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. It is important to note the in the estimation of benefits for the Metlakatla – Ketchikan Intertie, only the net fuel and incremental diesel O&M savings have been included. Additional “capacity” benefits will be realized by Ketchikan in that the Intertie will provide additional reserve benefits to KPU. The value of this capacity benefit has not been estimated at this time. Fuel savings have been estimated assuming that the full amount of surplus hydroelectric generation available in Metlakatla will be sold to KPU. Energy loads in Ketchikan are expected to increase significantly as more emphasis is placed on electric space heat in the community. The calculation of the Benefit Cost ratio shown in the Cost worksheet is based on the net present value of estimated net benefits over a 30 year project life assuming a 4.5% discount rate. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 100% for transmission line 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 Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other 4 ii. Rated capacity of generators/boilers/other 23,000 KW iii. Generator/boilers/other type Diesel generators iv. Age of generators/boilers/other Varies – 1970 through 1998 v. Efficiency of generators/boilers/other Approximately 14.5 kWh per gallon of diesel fuel b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $30,000 ii. Annual O&M cost for non-labor $30,000 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] 178,480,000 kWh (2011 actual for Ketchikan Public Utilities) ii. Fuel usage Diesel [gal] 317,250 (approx. for 2011 for KPU) Other iii. Peak Load NA 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.    Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 18 of 26 7/3//2012 iv. Average Load 20,375 kW (2011 actual for KPU) v. Minimum Load NA vi. Efficiency NA vii. Future trends Increasing loads with conversion to electric space heat. d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] Unknown ii. Electricity [kWh] Unknown iii. Propane [gal or MMBtu] Unknown iv. Coal [tons or MMBtu] Unknown v. Wood [cords, green tons, dry tons] Unknown vi. Other Unknown Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] None for transmission line. b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] None for transmission line. ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] None ii. Coal [tons or MMBtu] None iii. Wood [cords, green tons, dry tons] None iv. Other None Project Cost a) Total capital cost of new system $ 14,510,599 b) Development cost $ 14,510,599 c) Annual O&M cost of new system $ 60,000 d) Annual fuel cost None Project Benefits a) Amount of fuel displaced for i. Electricity 212,000 gallons per year ii. Heat iii. Transportation b) Current price of displaced fuel $816,000 per year at $3.85 per gallon Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 19 of 26 7/3//2012 c) Other economic benefits $ 47,000 per year in diesel generator O&M d) Alaska public benefits $863,000 per year Power Purchase/Sales Price a) Price for power purchase/sale Assumed 8.5 cents per kWh (price to be negotiated later) Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 0.4 Payback (years) 25 4.4.5 Proposed Biomass System Information Please address the following items, if know. (For Biomass Projects Only) Not applicable. 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 The net present value savings of the net benefit of the Metlakatla-Ketchikan Intertie project is $5,868,000 over the life of the project (30 years for this analysis). This benefit will be derived almost entirely from the savings in fuel costs for diesel generation. It is also estimated that about $225,000 per year could be paid to MIC for power purchased from MP&L by Ketchikan. Other economic benefits that have not been evaluated yet include the capacity benefit that KPU will realize with the Intertie since MP&L’s generating resources will be available to serve loads in Ketchikan even when the Swan Lake project or the Swan Lake transmission line are unavailable. The benefits of the Intertie could be increased if additional hydroelectric generating plants are built on Annette Island in the future. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 20 of 26 7/3//2012 It is also important to note that with the Intertie, KPU will be able to provide lower power costs in Ketchikan than could be realized with diesel generation. These lower power costs will then help local residents, public facilities and businesses realize greater savings if they choose to transition from oil to electric space heat. The lower electric rates will consequently serve as an additional incentive to convert to electric heat. The amount that local consumers would save in heating bills by converting to electric heat has not been evaluated as part of this application. Other benefits of the Metlakatla – Intertie include:  More efficient use of the area’s hydroelectric generating resources  Relatively minor negative environmental impacts related to installation and operation of the Intertie  Reduced oil consumption in the area  Reduced air pollution from burning of oil  Incrementally lower risks of fuel handling mishaps  Incrementally lower need for fuel deliveries in and transport through Southeast Alaska  Lower greenhouse gas emissions  Greater electric system reliability  Interconnection of previously isolated electric systems  Future development of new resources can be accomplished over a wider geographic area  More encouragement to convert to electric space heat in the area  Potential for improved high speed fiber optic communications systems to Metlakatla. 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 Metlakatla – Ketchikan Intertie will be operated by MP&L in coordination with KPU. Agreements will be established to assure effective maintenance and operating standards are in place and administered. Further, standard utility operating procedures to assure safe and reliable operation will be identified in contracts between MP&L and KPU and will be adhered to. Both MP&L and KPU currently own, operate and maintain utility properties similar to the Intertie and are very familiar with what will be needed to assure a long, useful life for the Intertie. MIC will monitor power sales and report periodically on the net savings to MP&L, KPU and SEAPA when the Intertie begins operation. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 21 of 26 7/3//2012 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. MIC, through MP&L, has undertaken design and procurement activities related to the Metlakatla- Ketchikan Intertie. As of August 2012, the following has been completed:  Design and engineering for the project is complete.  Poles for the overhead line along Walden Point Road have been installed. The overhead line is estimated to be approximately 20% complete overall.  Permitting activities are nearly complete.  Material acquisition is partially complete.  Installation of the control system upgrades is complete. 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. MIC fully supports the Metlakatla – Ketchikan Intertie project. In 2008, KPU provided a letter of support and commitment to MIC with regard to development and construction of the Intertie project. No local opposition to the project is expected. Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 22 of 26 7/3//2012 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. The Metlakatla – Ketchikan Intertie is expected to be fully grant funded. Detailed costs are provided in the budget forms, included below. Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS Design and Permitting - Permitting December 2012 $ 75,000 $ $ 75,000 Design and Permitting – Final Design June 2013 $200,000 $ 225,000 In-kind, Other State Grant $ 425,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $275,000 $ 225,000 $ 500,000 Budget Categories: Direct Labor & Benefits $ $ 20,000 $ 20,000 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ 5,000 $ 5,000 Contractual Services $275,000 $ 200,000 $ 475,000 Construction Services $ $ $ Other $ $ $ TOTALS $275,000 $ 225,000 $ 500,000 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 23 of 26 7/3//2012 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS Construction – Control System Upgrade Completed $ 260,094 $ 1,050,000 $ 1,310,094 Construction – Overhead Line October 2013 $ 3,013,285 $ 1,665,165 $ 4,678,450 Construction – Substation Improvements July 2014 $ 1,113,305 $ $ 1,113,305 Construction – Submarine Cable Material and Installation August 2014 $ 6,908,750 $ $ 6,908,750 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $11,295,434 $ 2,715,165 $ 14,010,599 Budget Categories: Direct Labor & Benefits $ $ 415,165 $ 415,165 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ 3,988,754 $ 529,178 $ 4,517,932 Contractual Services $ $ $ Construction Services $ 7,306,680 $ 1,770,822 $ 9,077,502 Other $ $ $ TOTALS $11,295,434 $ 2,715,165 $ 14,010,599 Renewable Energy Fund Round 6 Grant Application AEA13-006 Grant Application Page 24 of 26 7/3//2012 Project Milestones that should be addressed in Budget Proposal Reconnaissance Feasibility Design and Permitting Construction 1. Project scoping and contractor solicitation. 2. Resource identification and analysis 3. Land use, permitting, and environmental analysis 4. Preliminary design analysis and cost 5. Cost of energy and market analysis 6. Simple economic analysis 7. Final report and recommendations 1. Project scoping and contractor solicitation. 2. Detailed energy resource analysis 3. Identification of land and regulatory issues, 4. Permitting and environmental analysis 5. Detailed analysis of existing and future energy costs and markets 6. Assessment of alternatives 7. Conceptual design analysis and cost estimate 8. Detailed economic and financial analysis 9, Conceptual business and operations plans 10. Final report and recommendations 1. Project scoping and contractor solicitation for planning and design 2. Permit applications (as needed) 3. Final environmental assessment and mitigation plans (as needed) 4. Resolution of land use, right of way issues 5. Permit approvals 6. Final system design 7. Engineers cost estimate 8. Updated economic and financial analysis 9. Negotiated power sales agreements with approved rates 10. Final business and operational plan 1. Confirmation that all design and feasibility requirements are complete. 2. Completion of bid documents 3. Contractor/vendor selection and award 4. Construction Phases – Each project will have unique construction phases, limitations, and schedule constraints which should be identified by the grantee 5. Integration and testing 6. Decommissioning old systems 7. Final Acceptance, Commissioning and Start-up 8. Operations Reporting Renewable Energy Fund Round 6 Grant Application ENERGY AUTHORITY SECTION 10 -AUTHORIZED SIGNERS FORM Regular Election is held:December 9,2011 I Date:September 18,2012 Community/Grantee Name:Metlakatla Indian Community (MIC) Printed Name Title Term Signature Victor Wellington Sr.Mayor 2 years \rli.kJ~~~~ William C.Wilson 2nd ACting Mayor 1 year ~~07/_C/ Nathan Fawcett Treasurer 2 years A"ff -'~-=- Jeff T.Moran 2nd Acting Treasurer 1 year ~'IJ~ I authorize the above person(s)to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title 2 years Term Signature Victor Wellington Sr.1 Mayor Grantee Contact Information" Mailing Address: PO Box 8,Metlakatla,AK 99926 Phone Number:907-886-4441 Fax Number:907-886-3338 E-mail Address: mayor@metlakatla.com Federal Tax 10 #:92-0014579 Please submit an updated form whenever there is a chan ge to the above information. AEA 13-006 Grant Application Page 25 of 26 7/3112012 Renewable Energy Fund Round 6 Grant Application 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 ca n indeed commit the entity to these obligations. Print Name Victor C.Wellington Sr. Signature U~c....LDR>4=-~. Title Mayor, () Date 9/18/2012 AEA 13-006 Grant Application Page 26 of 26 7/3112012 COUNCIL ANNETTE ISLANDS RESERVE METLAKATLA INDIAN COMMUNITY VICTOR C.WELLINGTON,SR.,MAYOR DIANA M.YLINIEMI,SECRE'If'lRY NATHAN W.FAWCETT,TREASURER ESTABLISHED 1887 POST OFFICE BOX 8 METLAKATLA,ALASKA 99926 PHONE (907)886-4441 FAX (907)886-7997 RESOLUTION #12-43 BY THE COUNCIL ANNETTE ISLANDS RESERVE METLAKATLA INDIAN COMMUNITY SUPPORTING AND ENDORSING THE ALASKA ENERGY AUTHORITY RENEWABLE ENERGY GRANT APPLICATION WHEREAS,the Metlakatla Indian Community Council is the governing body of the Metlakatla Indian Community,Annette Islands Reserve,Alaska by the authority of the Constitution and By-laws of the Metlakatla Indian Community as approved on August 23,1944 by the Secretary of the Interior;and WHEREAS,the Metlakatla Indian Community is an Indian Tribe organized under the provisions of Section 16 of the Indian Reorganization Act.25,U.S.C.Section 476;and WHEREAS,the Metlakatla Indian Community Council is applying to the Alaska Energy Authority Renewable Energy Grant Program;and WHEREAS,the Metlakatla Indian Community fully supports and endorses the application to the Alaska Energy Authority Renewable Energy Grant FY 2013;and THEREFORE,BE IT RESOLVED THAT,in the event that a Alaska Energy Authority Renewable Energy Grant is awarded in State Fiscal Year 2013,the Metlakatla Indian Community hereby waives its sovereign immunity and consents to suit in Alaska State Courts or in a state administrative agency proceeding for any cause of action (including any allowable interest,costs and attorneys fees)or claim filed by the state arising out of or related to the grant only,to enforcement of any court or agency order entered in such action or agency proceeding and to levy and execution of any judgment entered in any such lawsuit or agency proceeding against all property and funds of the Metlakatla Indian Community however held and wherever located. Metlakatla Indian Community Resolution #12-43 Page 2 BE IT FURTHER RESOLVED THAT,Victor C.Wellington Sr.,Mayor is hereby authorized to negotiate,execute,and administer any and all grant agreements,documents, and contracts required for granting funds to the Metlakatla Indian Community,and managing funds and administering projects on behalf of this entity,including any subsequent amendments to said agreement. DATED this 18th day of September 2012 at Metlakatla,Alaska ATTEST: ~A~C\)'W~~-LO:l~ METLAKATLA INDIAN COMMUNITY (fiUIc,c~~ Victor C.Wellington Sr.,ayor CERTIFICATION This is to certify that the foregoing resolution was adopted at a meeting of the Community Council/Executives held on the.-..lIDlL day of September,2012 at which a quorum was present,by a vote of ~for and 9-against,the Mayor being authorized to sign the resolution.