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HomeMy WebLinkAboutSEAPA Round 6-Renewable Energy Grant ApplicationRenewable EnergyFund Round 6 q•■o ow-) � Ll a - - it - Grant Application �._)ENERGY AUTHORITY SECTION 1 — APPLICANT INFORMATION Name (Name of utility, 1PP, or government entity submitting proposal) The Southeast Alaska Power Agency Type of Entity: Joint Action Agency Fiscal Year End June 30 Tax ID # 92-0174669 Tax Status: For -profit or X_non-profit ( check one) Mailing Address Physical Address 1900 First Avenue, Suite 318 1900 First Avenue, Suite 318 Ketchikan, Alaska 99901 Ketchikan, Alaska 99901 Telephone Fax Email (907) 228-2281 (907) 225-2287 sthompson@seapahydro.org 1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER Name Title Trey Acteson Chief Executive Officer Mailing Address 1900 First Avenue, Suite 318, Ketchikan, Alaska 99901 Telephone Fax Email (907) 228-2281 (907) 225-2287 tacteson@seapahydro.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or 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); 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 Yes applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessary. (Indicate Yes or No in the box ) 1.2.3 As an applicant, we have administrative and financial management systems and Yes follow procurement standards that comply with the standards set forth in the grant agreement. 1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached Yes grant form. (Any exceptions should be clearly noted and submitted with the application.) 1.2.5 We intend to own and operate any project that may be constructed with grant Yes funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. AEA13-006 Grant Application Page 2 of 22 7/3//2012 Renewable Energy Fund Round 6 1_ Wit« Grant Application 0111111WID 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) HydroPower Surplus to Stored Hydrogen Feasibility Study. 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. Peiarabure 1. i �..� S bsrelion r The map shows the physical location of this project. The Southeast Alaska Power Agency ('SEAPA') transmission from Ketchikan to Swan Lake is shown as blue, Swan Lake to Tyee Lake as red, and from Tyee Lake to Wrangell and Petersburg as purple. SEAPA hydro generation is located at Tyee Lake and Swan Lake with additional hydro generation owned and operated by Petersburg and Ketchikan. The Tyee Lake and Swan Lake Power Plants can be accessed by boat or charter aircraft; there are no roads to these generation facilities. The hydroplants operated by Petersburg Municipal Light & Power and Ketchikan Public Utilities have road access. Wrangell Municipal Light & Power does not have a hydro plant. At this preliminary stage, the equipment and storage facilities for a prototype hydro -to -hydrogen conversion are thought to reside in one of the municipalities where support services, road access, and commercial flights are available. The exact location of the new facility will be determined in the feasibility study. The communities that will benefit from this project include Ketchikan, Wrangell, and Petersburg, Alaska. Additionally since the information obtained from conducting this feasibility is 100% transferrable to all hydro and wind utilities across Alaska, it will benefit the other Alaska communities with hydro and wind facilities. AEA13-006 Grant Application Page 3 of 22 7/3H2012 Renewable Energy Fund Round 6 Grant Application ENERGY AUTHORITY 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. The exact location of the facilities proposed for this project will be determined by the feasibility study and is unknown at this time.2.2.2 Community benefiting — Name(s) of the community or communities that will be the beneficiaries of the project. The communities which will directly benefit from this project include Ketchikan, Wrangell and Petersburg, Alaska. Additionally since the information directly obtained from this study is fully transferrable to other Alaska hydro utilities, all other hydroelectric utilities in the state of Alaska will benefit from the information obtained through this feasibility study. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar X Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre -Construction Construction Reconnaissance Design and Permitting X Feasibility Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. This project will encompass performing a feasibility study to determine if a proof of concept hydrogen (or Ammonia) prototype should be designed, constructed, and operated as an alternative to spill during times of low production and high inflows of the hydroelectric plants in the SEAPA system, which serves the loads of Ketchikan, Wrangell, and Petersburg, Alaska. This stored energy would then be used for generation either by supplementing diesel combustion or through the operation of fuel cell technology during times of hydroelectric shortages. When surplus hydro generation conditions occur, typically all hydro operators in the region are not fully utilized. With an isolated system, there is no alternative other than spilling surplus energy over a spillway. The region is also experiencing significant winter load growth that has caused and will continue to cause both energy and capacity shortages. These shortages are met with diesel-electric generation that dispatches at a cost differential of four -to -one over the current hydro cost of 6.8 cents/kWh. The information obtained from performing this feasibility study will also be directly transferrable to all hydroelectric and wind utilities in Alaska. AEA13-006 Grant Application Page 4 of 22 7/3//2012 Renewable Energy Fund Round 6 Grant Application ENERGY AUTHORITY 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) The benefits of this project includes the following: ■ More Efficient Management of Renewable Resource — The regions supported by SEAPA hydro power are experiencing significant winter load growth that has caused and will continue to cause both energy and capacity shortages. When surplus hydro generation conditions occur, typically all hydro operators in the region are also experiencing the same conditions. With an isolated system, there is no alternative other than spilling surplus energy over a spillway. By having the ability for hydrogen production and storage during times of surplus, SEAPA will be able to more efficiently manage this renewable resource. ■ Lower Energy Costs — The shortages experienced by the SEAPA hydro generation facilities are met with diesel-electric generation that dispatches at a cost differential of four -to -one over the current hydro cost of 6.8 cents/KWh. Since diesel-electric generation use will be greatly diminished by having the ability for hydrogen production and storage during times of surplus, this will have the benefit of lowering energy costs to consumers not only for the SEAPA system, but throughout Alaska. ■ Reduced Fuel Costs — By storing energy during times of excess surplus, the communities of Ketchikan, Wrangell and Petersburg will experience reduced fuel costs by not having to rely as heavily upon diesel -generation during peak load periods. ■ Benefit to other Hydro Utilities —The information obtained from this feasibility study will be fully transferrable to all hydro and wind facilities throughout the state of Alaska. This will benefit all the communities supported by hydro power by having the opportunity to store their excess capacity and utilize this energy at peak load times. ■ Emissions Reduction — By reducing the reliance on diesel-electric generation, emissions will be reduced and will reduce the hydrocarbon foot print. 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 anticipated funds needed to perform this feasibility study are estimated to be $244,385. Since this project will benefit all hydro and wind utilities in the state of Alaska, SEAPA is requesting that all funds be provided by this grant. If it is determined that SEAPA is the best option to manage this project, the cost of the project management, estimated to be 15% ($27,968) of the technical effort ($186,450), will be borne by SEAPA. SEAPA has also provided an in -kind contribution of approximately $5,000 to this project by creating the preliminary report on the project, which will be the basis for the request for proposal for the feasibility study. AEA13-006 Grant Application Page 5 of 22 7/3//2012 Renewable Energy Fund Round 6 Grant Application �4EWDENERGY AUTHORITY 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project's total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1Grant Funds Requested in this application. $244,385 2.7.2Cash match to be provided $-0- 2.7.31n-kind match to be provided $5,000 2.7.40ther grant applications not yet approved $-0- 2.7.5Total Grant Costs (sum of 2.7.1 through 2.7.3) $249,385 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.6Total Project Cost (Summary from Cost Worksheet including $244,385 estimates through construction) 2.7.7Estimated Direct Financial Benefit (Savings) per 5000 MWh $1,020,000 2.7.8 Other Public Benefit (If you can calculate the benefit in The benefit cannot be terms of dollars please provide that number here and calculated in terms of explain how you calculated that number in your application dollars, but if this project is (Section 5.) implemented it will reduce CO2 emissions, which has the public benefit of decreasing pollution 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. Overall project management of this project will be performed by Eric Wolfe, P.E., SEAPA Director of Special Projects. Mr. Wolfe has over 25 years of mechanical and civil engineering experience with 23 years working in the hydro -utility business. His utility experience started with QA engineering on hydropower construction projects and concluded as a utility planning analyst. Mr. Wolfe has provided site engineering support on hydroelectric construction, designed and constructed fish passage facilities and was project manager for hydro plant repair projects. He has been the project manager for development, and implementation of hydroelectric monitoring and optimization systems. His past consulting experience included utility operations planning including hydro plant site determination, hydrologic analysis, hydraulic design and analysis, and economic evaluations. In his position with SEAPA, he provides strategic planning, short and long-term system planning, and acts as project manager for capital improvement projects. AEA13-006 Grant Application Page 6 of 22 7/31/2012 Renewable Energy Fund Round 6 -)�) Grant Application MAD ENERGY AUTHORITY The following are references for Mr. Wolfe: Robert Venables Energy Coordinator Southeast Conference P. O. Box 210149 Auke Bay, Alaska 99821 Phone: 907.523.4350 Dave Carlson, (former CEO, Retired) c/o Southeast Alaska Power Agency 1900 First Avenue, Suite 318 Ketchikan, Alaska 99901 Phone: 907.317.1365 Andrew Donato Senior Electric Engineer Ketchikan Public Utilities 1065 Fair Street Ketchikan, Alaska 99901 Phone: 907.228.5475 Honorable Jeremy Maxand, Mayor City and Borough of Wrangell, Alaska P.O. Box 531 Wrangell, Alaska 99929 Phone: 907.305.0269 John Heberling, PE, Vice President D. Hittle & Associates, Inc. Puget Sound Office Senior Consultant 19101 36th Ave. W., Suite 209 Lynnwood, WA 98036 Phone: 425.672.9651 Mr. Wolfe's contact information includes: Office Phone: (907) 228-2281 ♦ Cell Phone: (907) 230-1424 ♦ Fax: (907) 225-2287 Email:ewolfe@seapahvdro.org AEA13-006 Grant Application Page 7 of 22 7/3//2012 Renewable Energy Fund Round 6 Grant Application I OEW—)ENERGY AUTHORITY 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 Based upon the uncertainty of the specific grant award date at this time, the following milestone dates are projections only and will be modified as necessary to successfully complete this project. tiY. 'i bdPrepare !sco request for proposal and solicit 3/1/13 3/10/13 proposals to perform the feasibility study Projecting and contractor solicitation Review previous utility hydrogen storage studies and create an electronic library 3/11/13 4/1/13 comprised of PDF documents Review existing SEAPA electrical system 3/11/13 3/18/13 energy and power data Detailed energy resource analysis Perform thermodynamic analysis and 4/1/13 4/27/13 comparisons Study and analyze storage options, and Assessment of alternatives perform literature review of previous 4/27113 6/18/13 Hydrogen and Ammonia studies. Conceptual design analysis and Estimate cost of system 6/18/13 7/9/13 cost estimate Detailed economic and financial Iterate cost with thermo analysis and 7/9/13 8/13/13 analysis storage mechanism Conceptual business and Compile review into preliminary report 8/13/13 9/3/13 operations plans Final report and recommendations Modify preliminary to final report 9/3/13 9/17/13 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, SEAPA charter dictates that all projects must go through a formal request for proposal (RFP) or bid process for award. For this project, we anticipate issuing an RFP for the performance of this feasibility study. We do not know at this time which consulting firm, educational institution or government entity, AEA13-006 Grant Application Page 8 of 22 7/3//2012 Renewable Energy Fund Round 6 •� p! Grant Application EENERGY AUTHORITY if collaborated, will be the successful team. Our consultant selection process will include the evaluation of proposals received based upon firm experience, key personnel, knowledge of hydrogen storage facilities, and overall qualifications to successfully perform this project. This study could be managed either by SEAPA, AEA or a third -party, but if SEAPA performs the project management, we will not seek reimbursement for this labor. Our proposed Project Manager is Eric Wolfe, P.E., who has over 25 years of experience in the hydro/energy industry. 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. Throughout the life of the project, the SEAPA Project Manager will provide written monthly updates to AEA which will include at a minimum the following: ■ Expenditures to date; ■ Percent complete; and ■ Narrative on progress including any schedule changes. In addition to the monthly progress reports, communication on project status will also be provided verbally with the AEA Project/Program Manager on an informal basis through emails and phone conversations. 3.5 Project Risk Discuss potential problems and how you would address them. The anticipated risks of performing this feasibility study are minimal. The standard project risk of the possibility of cost overruns is mitigated on this project by providing a 15% contingency cost in our projected project cost. Cost overruns will also be mitigated by effectively managing the project. 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. AEA13-006 Grant Application Page 9 of 22 7/3//2012 Renewable Energy Fund Round 6•� > p _ E4IIIIIIIIIIIIIIrms. Grant Application 4MMKIKE?ENERGYAUTHORITY The proposed energy resource is the storage of excess hydro that occurs seasonally within the SEAPA system. The figure below shows the historic spill at Swan Lake and diesel generation in Ketchikan. The full pool elevation at Swan Lake is 330 feet; the minimum operating level is 271.5 feet. Since all municipal and SEAPA hydroplants are electrically interconnected, excess generation at any hydro plant can be used for hydrogen or ammonia production. We conservatively anticipate 5,000 MWh will be available, even in low water years for hydrogen/ammonia production. 340 330 290 270 Ketchikan Diesel Generation and Swan Lake Reservoir Elevation spill k 1-0 it rZ 1J D 'D ^ (-1 T" T`' 11, F+ M 00 co co 00 co Q't M M a M M O O O O O O H H •i .—� .-i ri 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ri ri --i .--I . H H rf (p m ra O fa ra r_� i j N m ,� v O N ru ru ni O N ra ru v Q !a N N ,22 nZ- 22 liZ—:E2 LAZ '22 VI Z-'22 ulZ —22 LnZ ML 'tPMKPU Diesel, Dally MWh --Swan HW, ftmsl The pros of hydrogen/ammonia storage of excess hydropower include the following: .►► 500 400 0 u 300 c a 200 r3 100 0 G ■ Reliability —Hydrogen can increase stationary power reliability when used as an electricity storage medium. Hydrogen produces a non -intermittent power output and a proven reliable technology. ■ Constant power source —Hydrogen, renewably produced during off-peak periods and stored, can provide constant power using fuel cells or engines when the renewable resource is available. Additionally, hydrogen fuel cells are suitable for distributed generation with dispatch. ■ Lowest overall equipment cost —Small hydro plants not connected to the grid, but combined with the electrolysis plant, have the opportunity of the lowest overall equipment cost for a truly renewable hydrogen production. The cons of hydrogen storage of excess hydropower include the following: ■ Cost —Optimizing efficiency vs. equipment cost. ■ Safety —Possible perceived public perception of hydrogen storage not being safe. AEA13-006 Grant Application Page 10 of 22 7/3//2012 Renewable Energy Fund Round 6 Grant Application ENERGY AUTHORITY 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. SEAPA operates a transmission system and hydroelectric plants that serve electrical loads in Ketchikan, Wrangell, and Petersburg, Alaska. The SEAPA system is part of a region that is nearly 100% hydro based and electrically isolated. SEAPA hydro generation is located at Tyee Lake and Swan Lake with additional generation owned and operated by Petersburg and Ketchikan. SEAPA operates the transmission system from Ketchikan to Petersburg, Alaska.. The total installed hydro capacity of the entire system, including Ketchikan and Petersburg, is 60 MW. The total load of the system in 2011 was approximately 277,000 MWh. SEAPA assets were constructed during the 1980s; Ketchikan and Petersburg hydro plants were constructed in the early part of the 20t"century. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. The existing energy resources include a transmission system and hydroelectric plants that serve the electrical loads in Ketchikan, Wrangell, and Petersburg, Alaska. The SEAPA system is part of a region that is nearly 100% hydro based and electrically isolated. The impact the implementation of this project will have on the existing energy infrastructure and resources includes a reduction in the dependence upon diesel -generated energy when there is not enough hydropower produced to meet the load requirements. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. SEAPA system loads are now dominated by winter heating. This project, if successful, would shift output from summer and fall hydro plants, including future plants that would have otherwise spilled. This project lays the ground work for the development of lower cost hydro and environmentally friendly hydro in that non -dam or low dam projects would offer winter load -carrying capacity. 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 AEA13-006 Grant Application Page 11 of 22 7/31/2012 Renewable Energy Fund Round 6 �'),.r > A i Grant Application => ENERGY AUTHORITY • Basic integration concept • Delivery methods Our application is for a feasibility study to convert 5,000 MWh of excess hydro (spill) into stored hydrogen or ammonia that can be used later for generation. The system design would be determined by the feasibility study. A pilot project would follow the 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. SEAPA or a member utility (Ketchikan Public Utilities, Wrangell Municipal Light & Power, and Petersburg Municipal Power & Light) own the land(s) that a future pilot project (not this grant) would be constructed on. It is not anticipated that there will be any potential land ownership issues with this project. The communities of Ketchikan, Wrangell, and Petersburg are very committed to moving this project forward with their full support. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. • List of applicable permits • Anticipated permitting timeline • Identify and discussion of potential barriers No permits are needed to carry out this grant as it is a feasibility study. 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 Since this application is for a feasibility study, there are no environmental and land use issues related to the study. Any environmental or land use issues that may apply to this project will be addressed in the feasibility study for mitigation and implementation during the engineering and construction phases of the project. AEA13-006 Grant Application Page 12 of 22 7/3//2012 Renewable Energy Fund Round 6 Grant Application ENERGY AUTHORITY 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 Total anticipated cost: The anticipated cost of this project is $249,385. This cost estimate was derived from an analysis of the project requirements by Eric Wolfe, P.E., SEAPA Director of Special Projects. Mr. Wolfe has over 25 years of mechanical and civil engineering experience with 23 years working in the hydro -utility business. This experience makes him extremely competent in estimating the cost of performing this feasibility study. Requested grant funding: $244,385 Matching Funds: In terms of matching funds, SEAPA has already performed a preliminary analysis of this project, which is an in -kind contribution of approximately $5,000. Additionally if SEAPA manages this project, the labor cost of the project manager will be fully borne by SEAPA. Finally, since this feasibility study will be 100% transferrable to all other hydro/wind utilities in the state of Alaska, the benefit to these utilities and their consumers is a large in -kind benefit to all consumers who purchase hydro produced electricity. Other funding sources: SEAPA does not have any other funding sources for this project. Capital cost of proposed renewable energy system: This project is not for a renewable energy system, but for the storage of renewable energy. The determination of the anticipated capital cost of the proposed stored hydrogen facility will be part of this feasibility study. Projected development cost of proposed renewable energy system: Not applicable. 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.) If the actual cost of operations and maintenance are determined to be minimal in the feasibility study, it is anticipated that the costs will be borne by SEAPA. AEA13-006 Grant Application Page 13 of 22 7/3//2012 Renewable Energy Fund Round 6 Grant A l ication � p p �i ENERGY AUTHORITY 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from rant -funded project Not applicable. 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. 5,000 MWh per year, determined from system operation's plan Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage Since the feasibility study will determine the requested parameters, this information is non -applicable at this time. a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) Annual O&M cost for labor ii. Annual O&M cost for non -labor c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] 1The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. AEA13-006 Grant Application Page 14 of 22 7/3H2012 Renewable Energy Fund Round 6 ANK) . Grant Application if ENERGY AUTHORITY ii. Fuel usage Diesel [gal] Other iii Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] iv. Other Project Cost a) Total capital cost of new system b) Development cost c) Annual O&M cost of new system d) Annual fuel cost Project Benefits a) Amount of fuel displaced for AEA13-006 Grant Application Page 15 of 22 7/3//2012 Renewable Energy Fund Round 6 /-)�D p _ .r Grant Application �D ENERGY AUTHORITY i. Electricity ii. Heat iii. Transportation b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits Power Purchase/Sales Price a) Price for power purchase/sale Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback (years) 4.4.5 Proposed Biomass System Information Please address the following items, if know. (For Biomass Projects Only) • What woody biomass technology will be installed (cord wood, pellets, chips, briquettes, pucks). • Efficiency of the biomass technology. • Thermal or electric application. • Boiler efficiency. • Displaced fuel type and amount. • Estimated tons of wood pellets or chips (specify) to be used per year, and average moisture percentage. • Estimated cords of wood to be used per year, specify whether dry or green and the moisture percentage. • Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the biomass resource? Inventory data. How much biomass is available on an annual basis and what types (species) are there, if known? Not applicable to this project. AEA13-006 Grant Application Page 16 of 22 7/3//2012 Renewable Energy Fund Round 6 Grant Application E_)ENERGY AUTHORITY 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 Agreementprice, 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 —5,000 MWh of diesel generation Anticipated annual revenue — $1,020,000 Potential additional annual incentives —Stored renewable resource Potential additional annual revenue streams —Collaborative funds from other agencies on the next phase of the project. Non -economic public benefits to Alaskans over the lifetime of the project: Reduction in diesel produced energy, which has the benefit of reduced emissions. 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 This application is to conduct a feasibility study thus the sustainability of this project will be determined in the feasibility study and will be indicative on whether it is feasible to implement the project. The following are answers to the sustainability questions posed in this section: Proposed business structure — It is anticipated that once this project is constructed, SEAPA will be responsible for operating and maintaining the system. Financing — SEAPA will finance the maintenance and operations of the project if constructed. Anticipated operational issues — The feasibility study will determine any operational issues that could occur if this project is constructed. Operating costs — The feasibility study will determine the anticipated operational costs associated with this project. The proposed hydrogen storage is a backup to the existing system and if a failure of the new AEA13-006 Grant Application Page 17 of 22 7/3//2012 Renewable Energy Fund Round 6 �•f Grant Application f GMW-"iENERGY AUTHORITY system were to occur, SEAPA would revert to its current system. Commitment — SEAPA is committed to reporting the savings and benefits on an annual basis to AEA and SEAPA member organizations. It is anticipated that if this project is implemented, other hydro/wind utilities throughout the state will be able to replicate our system for their benefit. 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. To prepare for the awarding of this grant funding, SEAPA has already prepared a preliminary report which outlines the requirements of this project. The report will serve as the basis for the request for proposal (RFP) and the feasibility study itself. Upon receiving notice that we are successful in receiving the requested grant funding, we will issue an RFP for professional services to perform the HydroPower Surplus to Stored Hydrogen Feasibility Study. The received proposals will then be analyzed and the most qualified candidate selected to perform the feasibility study. It is anticipated that SEAPA will issue the notice to proceed to the successful consulting firm on approximately March 11, 2013. The proposed conclusion of the project with the issuance of the final feasibility study will commence on September 17, 2013. These dates are projections only based on the grant award schedule and will be modified as necessary to successfully conclude this project. SEAPA has not applied for any other grants for this project. However, SEAPA has a long history of successfully meeting the requirements of previously awarded grants, including grants from the Alaska Energy Authority. 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. SEAPA held a meeting with its board of directors on September 10, 2012. The board of directors signed a Resolution authorizing this grant request. The Resolution and Minutes of the meeting are included in the attachments to this application. The communities of Ketchikan, Wrangell, and Petersburg are very committed to moving this project forward with their full support. Letters of support are attached. SEAPA is not aware of any opposition to this project. SECTION 9 — GRANT BUDGET Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Provide a narrative summary regarding funding sources and your financial commitment to the project. AEA13-006 Grant Application Page 18 of 22 7/3//2012 Renewable Energy Fund Round 6 " ._ 4IIIIIIIIIIEJ Grant Application �7ENERGY AUTHORITY ^- The anticipated cost of this project is $244,385 and we are requested the full amount in grant funding from AEA. This cost estimate was derived from an analysis of the project requirements by Eric Wolfe, P.E., SEAPA Director of Special Projects. Mr. Wolfe has over 25 years of mechanical and civil engineering experience with 23 years working in the hydro -utility business. This experience makes him extremely competent in estimating the cost of performing this feasibility study. In terms of matching funds, SEAPA has already performed a preliminary analysis of this project, which is an in -kind contribution of approximately $5,000. Additionally if SEAPA manages this project, the labor cost of the project manager will be fully borne by SEAPA. Finally, since this feasibility study will be 100% transferrable to all other hydro/wind utilities in the state of Alaska, the benefit to these utilities and their consumers is a large in -kind benefit to all consumers who purchase hydro/wind produced electricity. Applications should include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (Reconnaissance, Feasibility, Conceptual Design, Design and Permitting, and Construction). Please use the tables provided below to detail your proposed project's budget. Be sure to use one table for each phase of your project. The following is the budget information for the feasibility study phase of this project: Source of Matching Cashfin- kindlFederall Anticipated Grantee GrantslOther Completion RE- Fund Matchling state Mitestorte or Task Date Grant Funds Funds GrantslOther TOTALS Review previous utility hydrogen storage studies and 4/1/13 $19,800 $19,800 create an electronic library comprised of PDF documents Review existing SEAPA electrical system energy and 3/18/13 $6,600 $6,600 power data Perform thermodynamic 4/27/13 $24,750 $24,750 analysis & comparison Study and analyze storage 6/18/13 $49,500 $49,500 options Estimate cost of system 7/9/13 $19,800 $19,800 Iterate cost with thermo analysis and storage 8/13/13 $33,000 $33,000 mechanism Compile review into 9/3/13 $19,800 $19,800 preliminary report Final report and 9/17/13 $13,200 $13,200 recommendations ,, 9a AEA13-006 Grant Application Page 19 of 22 7/3//2012 Renewable Energy Fund Round 6 Grant Application GMW--) ENERGY AUTHORITY Direct Labor & Benefits (Project Management) $27 968 $27 968 Travel & Per Diem $2,000 $2,000 Equipment Materials & Supplies Contractual Services Construction Services Other- Contingency (15%) • $27,967 $27,967 Project Milestones that should be addressed in Budget Proposal Reconnaissance Feasibility Design and Permitting Construction 1. Project scoping and 1. Project scoping 1. Project scoping 1. Confirmation that all contractor solicitation. and contractor and contractor design and feasibility solicitation. solicitation for requirements are 2. Resource planning and complete. identification and 2. Detailed energy design analysis resource analysis 2. Completion of bid 2. Permit documents 3. Land use, permitting, 3. Identification of applications (as and environmental land and regulatory needed) 3. Contractor/vendor analysis issues, selection and award 4. Preliminary design 4. Permitting and 3. Final environmental 4. Construction Phases analysis and cost environmental assessment and -Each project will 5. Cost of energy and analysis y mitigation plans have unique construction phases, market analysis 5. Detailed analysis of (as needed) limitations, and 6. Simple economic existing and future 4. Resolution of schedule constraints analysis y energy costs and land use, right of which should be markets way issues identified by the 7. Final report and recommendations 6. Assessment of 5. Permit approvals grantee alternatives 5. Integration and 7. Conceptual design 6. Final system design testing analysis and cost y 6. Decommissioning old estimate 7. Engineers cost systems 8. Detailed economic estimate 7. Final Acceptance, and financial 8. Updated Commissioning and analysis economic and Start-up financial analysis 9, Conceptual p 8. Operations Reporting business and 9. Negotiated operations plans power sales agreements with 10. Final report and approved rates recommendations 10. Final business and operational plan AEA13-006 Grant Application Page 20 of 22 7/3//2012 Renewable Energy Fund Round 6 Grant Application OW---) ENERGY AUT•' 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 1.4that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. - Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with,all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Trey Acteson Signature Title Chief Executive Officer Date September_; 2012 AEA13-006 Grant Application Page 22 of 22 7/3//2012