HomeMy WebLinkAboutEilm_AEA_application_FINAL_8-26-11Renewable Energy Fund Round 5
Grant Application
Name (Name of utility,IPP,or govemment entity submitting proposal)
SECTION 1 -APPLICANT INFORMATION
Type of Entity:
TaxlD#'12---00 5?jO q5 Tax Status:
Fiscal Year End
For-profit or ~-profit (check one)
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Email C rf '-1 trP e L-Im (i)l//i I/o fJ ..C!PrJTelephon.;r,i.Fax 0-t7<if10--.:J4'11 Q 10 ..-.3 01/
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
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Mailing Addresspo8 oX 3qa tJq ~Iml IfUJ[;IV/qq?3'1
Telephone Fax Email
151 0---51",~qj)-as/)[!r/-q iJ V fit m @ l.f .,£Jf-/lJjJ.em,
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 uti!l.Ut--holdinga certificate of public convenience and necessity under AS
42.05,orurtf-
~n independent power producer in accordance with 3 ~C 107.695 (a)(1),or >)
V A local government,or w:rfh -II1e <5.-fA-k t:rfL 4A,(ItAA.s,]...C/.08",tJ;-z:(6
A governmental entity (which includes tribal councils an'd housing authorities);
Yes 1.2.2.Attached to this application is formal approval and endorsement for its project by
or its board of directors,executive management,or other governing authority.If the
No applicant is a collaborative grouping,a formal approval from each participant's
governing authority is necessary.(Indicate Yes or No in the box)
Yes 1.2.3.As an applicant,we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
or
No
Yes
or
No
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.or
No
AEA 12-001 Application 7/1/2011
Renewable Energy Fund Round 5
Grant Application
AEA 12-001 Application Page 1 of 30 7/1/2011
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org
Grant Application
Form
GrantApp5.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet
5.doc
Summary of Cost information that should be addressed by
applicants in preparing their application.
Grant Budget
Form
GrantBudget5.
doc
A detailed grant budget that includes a breakdown of costs by
milestone and a summary of funds available and requested to
complete the work for which funds are being requested.
Grant Budget
Form Instructions
GrantBudgetIn
structions5.doc
Instructions for completing the above grant budget form.
Authorized
Signers Form
Authorized
signers
form5.doc
Form indicating who is authorized to sign the grant, finance
reports and progress reports and provides grantee information.
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 completion of each phase.
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
Grant Application Round 5
AEA12-001 Grant Application Page 2 of 30 7/1//2011
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of Elim
Type of Entity: Tribal Governmental Entity Fiscal Year End July 1
Tax ID # 92-0058095 Tax Status: For-profit or non-profit ( check one)
Mailing Address
PO Box 39009
Physical Address
101 Hillside Drive
Telephone
907-890-3441
Fax
907-890-3811
Email
Cityofelim@yahoo.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Crystal Ivanoff
Title
City Clerk
Mailing Address
PO Box 39009, Elim, Alaska 99739
Telephone
907-890=3441
Fax
907-890-3811
Email
cityofelim@yahoo.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, with state of Alaska A.S. 29.08.050(b)
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 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
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 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
funds for the benefit of the general public.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 3 of 30 7/1//2011
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)
Community of Elim Geothermal Resource Assessment
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.
Elim (pop. 337) is located on the northwest shore of Norton Sound on the Seward Peninsula,
96 miles east of Nome. The known geothermal springs, variably called Elim Hot Springs or
Kwiniuk Hot Springs, will be a prime target for this project and are located approximately 8
miles directly inland from the community (Lat: 64.7 Long: 162.467).
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
X 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)
X 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.
The City of Elim and its partners, the Native Village of Elim, Elim Native Corporation, and the
University of Alaska Fairbanks are proposing a Resource Assessment (Reconnaissance) /
Feasibility Analysis of potential geothermal sites near the community. A number of known
moderate temperature hot springs as well as other identified thermal anomalies, based on local
knowledge, are located in the area surrounding Elim offering potential energy sources for the
community. Known sources include Kwiniuk/Elim Hot Springs (41°C at 22 gpm), and Clear
Creek Hot Springs (65°C at 230 gpm). No significant geothermal exploration has occurred at
Elim to date, although the Alaska Energy Authority identified geothermal energy, along with
wind, and wood, as potential energy options for Elim in the 2010 Energy Pathway. This project
will combine low cost airborne and ground-based reconnaissance and mapping techniques to
develop a conceptual model of the system, and complete a preliminary design and cost analysis
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Grant Application Round 5
AEA12-001 Grant Application Page 4 of 30 7/1//2011
to refine the numbers included in the Pathway.
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.)
Elim has an average electric load of 117 kW, and peak load of 269 kW. Installation of a single
binary geothermal power plant, such as the Pratt and Whitney 280 kW PureCycle module
installed at Chena Hot Springs, could displace most of the diesel fuel used in the community, if
designed for stand-alone operation (see discussion in work plan section, Task 5). We estimate it
could displace up to 90% of the diesel fuel used for power generation (80,391 gallons) in the
community, or $285,789 annually based on Energy Pathway projections.
According to the Energy Pathway, the Community of Elim is also heavily dependent on heating
fuel, with 76% of community residents heating with fuel oil. Current costs for fuel oil (August
2011) at the Elim Native Store is $5.59/gallon. At an estimated fuel use of just over 100,000
gallons/year for Elim, this is a substantial cost to the community. Geothermal energy is
commonly used for space heating, but with the distance of the resource from the community
(minimum eight miles) and the small population base, it may be difficult to utilize the
geothermal resource for district heating in addition to power generation. Nonetheless, we
propose to investigate several development scenarios, including piping produced geothermal
fluid to the community for both heat and power, generating power at the resource and building a
transmission line to Elim, and developing the resource for other beneficial purposes, such as
local food production.
In addition to reducing energy costs, geothermal development for Elim would have the following
added benefits:
Reliability – Geothermal power producing technology is tried and reliable, and unlike
other forms of renewable energy can supply baseload power. Pratt and Whitney and
Ormat binary power plants are both guaranteed at 95% reliability, and are proven to be
99% reliable. Pratt and Whitney plants have been field tested and proven in the harsh
climate of Chena Hot Springs.
Low environmental impact – Geothermal power production produces almost no
emissions, and has a low visual impact and small surface footprint comparative to other
technologies per MW generated. The project will offset CO2 and other greenhouse gas
emissions from the existing fossil fuel base plants. Therefore, public and environmental
health are both enhanced.
Local development and enhanced community sustainability – the Community of Elim
identifies geothermal development as its top priority in the 2009 update to its 2005-2010
Local Economic Development Plan. Part of this project will be to assess how to optimally
develop the potential benefits of geothermal energy for the community of Elim. While
generation of electric power is one option, it is not the only option. In addition, the power
available from the resource maybe greater than the current electric demand of the area.
Therefore, we intend to consider the entire energy picture for the area and growth of
certain industries or businesses that would further the sustainability of the area.
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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 project cost for the project is $527,908, of which $415,871 is requested in grant funds
from AEA. Of the remaining, $94,447 in match funding is from a federal grant from the
Department of Energy (DOE) to the University of Alaska Fairbanks. Applicability of this grant
funding to the Elim project, and use of these funds to match this proposal, has been approved in
writing by the DOE. In addition to the listed in-kind match, all equipment needed for the field
work is owned by the University of Alaska Fairbanks and can be used for this project at no cost.
The City of Elim has made the commitment to providing lodging for UAF researchers, and for
out of town participants in Stakeholder Advisory Group (SAG) meetings for a total of up to 40
nights. Specifically, the city will provide an apartment, including a full kitchen and meeting area,
with a maximum value of $7,560. The City will also make telephone and wireless Internet
service available to project participants at the City building.
The Elim IRA Council has committed to providing the in-kind contribution of a driver and an all
terrain vehicle capable of carrying a total of the driver and one passenger to support UAF field
activities valued at a maximum of $10,000 ($40 / hour, 250 hour maximum). The presence of a
local who is familiar with the surrounding terrain and sites to be surveyed, and is capable of
dealing with aggressive large wildlife if and when encountered, will significantly reduce project
risk.
In addition, all participants have resolved to participate in Stakeholder Advisory Group meetings,
provide additional information about the location of suspected geothermal sites, and when
possible provide additional support and assistance with field research and site access.
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. $ 415,871
2.7.2 Other Funds to be provided (Project match) $ 112,037
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 527,908
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet
including estimates through construction)
$ N/A
2.7.5 Estimated Direct Financial Benefit (Savings) $ N/A
2.7.6 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.)
$ N/A
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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.
This project is a joint effort between all three tribal entities in Elim; the City, the IRA Council,
and the Native Corporation, and the University of Alaska. The City of Elim is the lead applicant.
The city will manage and track local activities including coordinating, hosting, and reporting on
Stakeholder Advisory Group (SAG) meetings, scheduling and providing lodging for UAF
researchers and SAG attendees donated in-kind by the City of Elim, and scheduling field support
labor and equipment donated in-kind by the Elim IRA. The Elim IRA will track the use of their
in-kind contribution and report quarterly to the city. UAF will also report to the city quarterly.
The progress of all entities will be reported quarterly to the AEA.
Mayor Edwin Kotongan will maintain signature authority while delegating project management
and oversight to City Clerk Crystal Ivanoff, and day to day fiscal responsibility to bookkeeper
Esther Aukongak. Aukongak has a certificate of completion of Quickbooks training, and has
substantial hands-on experience with the software. She handles electricity billings for AVEC,
billings for city lodging, and billings for heavy equipment rentals from the city.
The city has administered federal and state grants, generally of a cost-reimbursement type, that
include provisions for advances and billings on a reimbursable system. Aukongak will
implement fund-accounting concepts and set up the geothermal project as an independent fiscal
and accounting entity with a self-balancing set of accounts, recording revenues, expenses, assets,
liabilities and fund balances which are segregated for the purpose of carrying on activities or
attaining objectives in accordance with the grant. All cash disbursements for the project will be
made by check, generated by the bookkeeper, based on requests from other staff members and
approval by the Mayor.
Crystal Ivanoff will be delegated project management and oversight. Ivanoff works regular
hours, and so will be available to deal with matters as they arise. Her duties will include
managing all aspects of Stakeholder Advisory Group (SAG) meetings, including coordinating
schedules, sending invitations, booking travel and accommodations, securing meeting space, and
taking and distributing meeting minutes. Ivanoff will make sure project participants make it to
and from the airport on time, schedule lodging for them at the city, coordinate a driver / ATV
with the IRA for field research, and provide other project support as needed.
Other projects the city has either completed, or is working on today include:
2009 USDA $75,000 ANTHC Preliminary Engineering / Environmental Report- evaluate
existing master plan and sanitation facilities, develop a new sanitation improvement plan,
complete a water resource investigation.
2009 Brownfield Assessment City Shop
2008 USDA $39,751
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2008 DCCED DCRA Community Playground, $33,104
2008 Brownfield Assessment Old AVEC Site
2007 DCCED $25,000
2006 DCCED/ANTHC $200,000 Water & Sewer Sanitary Master Plan / Solid Waste Landfill
1998 DCCED - $147,660 - Municipal landfill project.
Subcontracts will be issued to the University of Alaska Fairbanks for research on this project.
The University of Alaska components will be managed by Alaska Center for Energy and Power
Director, Gwen Holdmann. In addition to managing the overall UAF scope and serving as the
main point of contact for the City of Elim, Ms. Holdmann will lead Task 3 and 4. Task 1 will be
led by Anupma Prakash, Professor and Chair Remote Sensing Group at the Geophysical Institute
(GI). Task 2 will be led by Rainer Newberry, Professor of Economic Geology, Department of
Geology and Geophysics, University of Alaska Fairbanks. Other UAF researchers include Dr.
Christian Hasselwimmer (Task 1 and 3); Markus Mager (Task 4); Dr. Billy Muhando (Task 4);
and Dr. Jessie Cherry (Task 1).
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
We expect this project will be completed within 12 months. At that point, Elim’s tribal entities,
in consultation with other Stakeholder Advisory Group members, will make a go/no-go decision
based on the available body of information, on whether to pursue additional funding under
Round 6 of the Renewable Energy Fund Program to conduct an additional and more costly
exploration drilling program, with the goal of developing the resource to benefit the Community
of Elim and its residents. We expect the project schedule to progress as outlined below, based on
an assumed August 1, 2012 start date and minimal allowed pre-award expenditures dating to July
1, 2012. This would allow rapid mobilization of team resources, and would permit the field
work components (Task 2) to be completed in 2012, rather than delaying the project until 2013.
If the SAG decides exploratory drilling is warranted based on the outcome of the proposed
activities, substantial savings might be garnered by using drill rigs currently deployed at Pilgrim
Hot Springs for drilling in Elim during the summer of 2013.
An overall project timeline includes:
- August 2012: Get contract in place and hold initial SAG meeting (in-person)
- August 2012-May 2013: Task 1-4 UAF Scope of Work (see section 3.3 for additional
detail)
- December 2012: SAG meeting to report on results from Task 2 (telephonic)
- March 2012: SAG meeting to discuss upcoming Task 1 activities (telephonic)
- June 2013: Draft UAF conclusions presented to SAG for review
- August 2013: Final project report submitted to AEA
Additional detail of Task and sub-task timelines is included in the following section.
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them. The
Milestones must also be included on your budget worksheet to demonstrate how you propose to
manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)
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This project has been divided into 4 discreet tasks, with several associated sub-tasks and
schedules associated with each one. The tasks will be led by researchers from the University of
Alaska Fairbanks, under the direction of the City of Elim and with the input from members of the
Stakeholder Advisory Group.
Task 1 –Thermal Infrared Mapping and Analysis around Community of Elim.
(Task lead - Anupma Prakash)
As a first step in any geothermal development project, a systematic survey and analysis on the
extent, nature, magnitude of the thermal anomaly, and a quantitative estimate of the heat flux
beyond the natural radiative heat of the Earth and sun is required. This is particularly useful in
determining the extent to which the resource can be exploited for sustainable power generation
or direct use. This task builds on the work conducted by the University of Alaska Fairbanks
(UAF) at Pilgrim Hot Springs which pioneered the use of satellite images and airborne Forward
Looking Infrared Radiometry (FLIR) as a low-cost method of estimating the developable extent
of moderately sized geothermal resources in remote areas. This task will include analyzing
available optical, thermal and microwave images from the Landsat, ASTER, WorldView-2 and
TerraSAR-X satellite sensors to find potential areas of geothermal interest. This regional analysis
will be followed by one FLIR survey flown in April 2013. The area covered will include a
roughly a 20 square mile area incorporating both known and suspected geothermal anomalies as
identified by local residents (see Figure 1). The task is organized into the following sub-tasks,
with estimated completion dates:
Task 1.1 (September 2012): Acquire all available images from the Landsat, ASTER,
WorldView-2 and TerraSAR-X satellite sensors to carry out regional mapping of landcover
with an emphasis on geothermal features and seasonal changes in their surface expressions.
Task 1.2 (December 2013): Satellite data processing and preliminary results reported to the
Stakeholder Advisory Committee SAG committee.
Task 1.3 (April 2013): FLIR airborne survey over the entire study area organized by UAF.
Concurrent ground-based reconnaissance to support flight is conducted under Task 3.
Task 1.4 (June 2013): Data processing completed and results incorporated into conceptual
model of the resource. Submitted to SAG for review; recommendation on go/no-go decision
point presented to SAG at June meeting.
Task 1.5 (July 2013): Final report completed. Submit report to AEA.
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Figure 1. Location of potential geothermal anomalies mapped by local residents, in
addition to the known geothermal resource at Elim Hot Springs.
Figure 2.Color Infrared (CIR) image (Roll 8,
Line 73, frame 059) from late 70s showing
Kwiniuk Hot Springs, which are located within
the open circle area. Corresponding USGS
Solomon C-2 quadrangle topographic map
shows a trail along the Kwiniuk River.
Task 2 –Ground Based Reconnaissance.(Task lead - Rainer Newberry)
Task 2 is planned both to support the Task 1 FLIR campaign, and to collect additional samples
for water chemistry from both known and not previously sampled springs and seeps (identified
by local residents), to collect rock samples for major and trace element analyses, and to create
several detailed scale geologic maps to better define the geologic constraints on the system. We
will need helicopter support, as the locations of interest are not ground-accessible from Elim
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during the summer months.
Task 2.1 (August 2012): Collect 8-12 water samples (including duplicates and standards) for
analysis from seeps and springs within a 12 mile radius of the community. These will be
submitted for major and minor element chemical analysis and analyzed via standard
geothermometers to determine the estimated reservoir temperatures other constraining
characteristics. Chemical analyses of waters previously sampled from Elim and Clear Creek
hot springs (Miller, 1973) are both internally inconsistent and display enormous differences
not consistent with their similar geologic settings. A better understanding of the water
compositions and variations is critical to understanding the hydrothermal dynamics.
Task 2.2 (August 2012): Geologic mapping and rock sampling in the area. The only geologic
map available for the area (Till et al., 1986) is of regional (1:250,000) scale. Such mapping
(Fig. 3) indicates that the most important hot springs are located in the Darby pluton (Kd,
Fig. 3) an igneous body known to be locally enriched in the radioactive elements K, U, and
Th. Most of the hot springs are located apparently on or near major scale, steeply dipping
faults. The setting is thus similar to that at Chena Hot Springs, Interior Alaska. To
determine if CHS represents a viable model for these hot springs (Task 3) we plan to collect
and compositionally characterize igneous rocks from the area to verify and to determine if
the hot springs are located on faults subsidiary to the major scale ones mapped in their
vicinity. Doing so will permit development of a viable conceptual model of the system (Task
3).
Task 2.3 (April 2013): Draft report submitted to SAG, in conjunction with Task 3 activities.
Recommendation on go/no-go decision point presented to SAG at April meeting.
Task 2.4 (May 2013): Submit final UAF report to AEA.
Figure 3. Known geology in the vicinity of
Elim-area hot springs, modified from Till et al.,
1986). The Darby pluton (Kd, pink) hosts the
most important known hot springs (yellow
ovals). Most of the hot springs occur on or
near inferred regional-scale faults (red dotted
lines).
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Task 3 –Conceptual Model of the System(led by University of Alaska Fairbanks)
The information from Tasks 1 and 2 will be combined with existing information about the
resource to develop a conceptual model of the system and guide subsequent efforts under Task 4.
We plan to combine available information about the resource in a GIS environment to help
inform the decision making process. To facilitate this effort, we will take care to ensure results
from Task 1 and 2 activities are compiled in a geospatially consistent manner so they can be
easily integrated in a GIS environment using an off the shelf commercial GIS software package
such as ArcGIS.
Task 3.1 (November 2012): Collect and compile existing body of knowledge related to the
Elim geothermal system and its geologic context to incorporate into a conceptual model of
the system.
Task 3.2 (January 2013): Build GIS framework and incorporate satellite data, processed
image products such as temperature maps, vegetation stress maps, snow melt maps, as well
as information from other sources.
Task 3.3 (April 2013): Complete draft conceptual model of the geothermal system, to be
presented to the SAG for review and comment.
Figure 4.We intend to incorporate data from both existing sources and results from
Task 1 and 2 activities within a GIS platform to develop a conceptual model of the
resource and inform decisions related to any potential future development.
Task 4 – Preliminary Design Analysis and Cost (Task lead - Gwen Holdmann)
A preliminary conceptual design for developing the resource along with estimated costs will be
analyzed. This preliminary design will include wells, gathering systems, necessary roads and
infrastructure, the plant itself, and transmission lines. Included in this task are multiple scenarios
for developing the resource, taking into account conservative values for the maximum
developable extent of the resource, based on the conceptual model completed as part of Task 3.
Specifically, we will consider challenges and potential barriers to developing the site, such as
stand-alone operation, and production and injection requirements, as well as design of a
transmission system. The information from each of the sub-tasks will be incorporated into a
single document that will help inform the go/no-go decision point that is part of Task 1.
Task 4.1 (April 2013): Cost of energy to market design. Because the geothermal resource is
located close to but outside of the community, a transmission line will need to be installed.
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There are a number of issues that impact the cost of this system but ultimately the cost of the
transmission system will almost certainly drive the economic viability of development.
Task 4.2 (September 2012): Conceptual geothermal field and power plant design. Based on
the conceptual resource model completed as part of Task 3, common scenarios for
developing the site will be analyzed to inform the economic feasibility study (Task 4.4).
Specifically, we plan to complete generic modeling of various field production strategies,
including their energy requirements. This is necessary to understand the potential net power
that could be delivered to the community.
Task 4.3 (April 2013): Land Use, Permitting, and Environmental Analysis. This sub-task will
include identification and analysis of potentially competing land use and ownership, resource
issues, permitting, and environmental needs of the geothermal plant through construction that
will be required continuing on with further exploration and/or development.
Task 4.4: Simple Economic Feasibility. Based on the outcome of Tasks 2-4, we will conduct
an economic feasibility analysis for developing the Elim resource both for power generation
and for direct use. This will include a preliminary analysis of the cost of a transmission line,
which would be a major factor in the economic viability of development.
3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the
project. Include any partnerships or commitments with other entities you have or anticipate will
be needed to complete your project. Describe any existing contracts and the selection process
you may use for major equipment purchases or contracts. Include brief resumes and references
for known, key personnel, contractors, and suppliers as an attachment to your application.
Mayor Edwin Kotongan will maintain signature authority while delegating project management
and oversight to City Clerk Crystal Ivanoff, and day to day fiscal responsibility to bookkeeper
Esther Aukongak.
Mayor Kotongan is currently serving his second 3-year term and will be up for re-election in
October 2012. The Mayor also sits on the Elim Native Corporation Board of Directors. As a
lifetime resident of Elim, he has been involved in many types of projects over the years.
Aukongak has worked as Elim’s bookkeeper since September 2008. Prior to that, from February
2005 to August 2008, she was the bookkeeper/landplanner for Golovin Native Corporation.
From September 2000 to January 2005 she was the Utility Clerk for the City of Golovin.
Aukongak has provided a certificate of completion for “CIOS F105” Quickbooks dated
12/15/07. She uses the software regularly and is proficient. In addition to her role as City Clerk,
Aukongak handles electricity billings for AVEC, billings for city lodging, and billings for heavy
equipment rentals from the city.
Crystal Ivanoff will be delegated project management and oversight. Ivanoff has been the City
Clerk in Elim since January 2010. Prior to that, from January 2006 to October 2008, she was a
substitute aide for the Bering Strait School District in Elim. Before that worked as the
administrative office clerk for the City of Elim, cxercise assistant at the Elim IRA, and Kids
Activities Program Assistant at the Elim IRA. Ivanoff was awarded her GED on 5/17/2006. Her
duties will include managing all aspects of Stakeholder Advisory Group (SAG) meetings,
including coordinating schedules, sending invitations, booking travel and accommodations,
securing meeting space, and taking and distributing meeting minutes. Ivanoff will make sure
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project participants make it to and from the airport on time, schedule lodging for them at the
City, coordinate a driver / ATV with the IRA for field research, and provide other project support
as needed.
Kawerak’s Energy Specialist, Walter Rose, is available upon request from Elim, to provide
research and technical support for this project. Mr. Rose was awarded a Master in Business
Administration and a Master of Science in Information Systems Management at the Peter F.
Drucker Graduate School of Management in Claremont California in 1994. He has been working
as the Energy Specialist at Kawerak for almost two years. Mr. Rose’s prior work experience
includes time in the recycling industry, more than a decade as a relational database programmer,
and more than five years of experience as the chief purchasing agent for a Japanese machine tool
manufacturer.
While he is not directly involved in the management of this project, it is worth noting that Paul
Ivanoff will participate in SWG meetings and will be involved in decisions about the future
direction of this project. He is chairman of the Board of Kawerak Inc., C=chairman of the Bering
Straits Development Council, president of the Elim Native Corporation, and president of the
Elim IRA Council. As evidenced by the attached letters, he is in full support of this project.
Resources available at the city include office space, secure storage, telephone and wireless
Internet service, and lodging and accommodations. Lodging at the city building include an
apartment with a full kitchen, separate bathing area, and a common meeting space. The
apartment is suitable for use by UAF researchers while in Elim, and is being offered as an in-
kind contribution by the city for the course of the project (limit 40 nights stay). The City of Elim
also owns and maintains heavy equipment which is available for rent. Details on the types of
equipment and rental rates are not included in this proposal because we do not anticipate any of
it will be needed for the project.
The Elim IRA Council has committed to an in-kind contribution in the form of a driver and all
terrain vehicle to this project. Qualifications are that the driver be in good standing with the law,
healthy, sober, and have a solid track record of safe, successful, hunting, fishing, and exploring
in the area to be surveyed.
This section only touches on local resources that will be directly involved in the project.
Indirectly, virtually the entire community will be involved through the Stakeholder Advisory
Group. It is beyond the scope of this section to provide background information and resumes’ for
all the village leaders involved. Ultimately, however, the skills and knowledge of the entire
Village of Elim, and the resources at their disposal, are potentially available to support this
project.
The University of Alaska components will be managed by Alaska Center for Energy and Power
Director Gwen Holdmann. Holdmann is currently the principle investigator for the DOE and
AEA funded Pilgrim Hot Springs Geothermal Resource Assessment, and previously served as
project manager and engineer for the Chena Hot Springs geothermal projects. In addition to
managing the overall UAF scope and serving as the main point of contact for the City of Elim,
Holdmann will lead Task 3 and 4. Task 1 will be led by Anupma Prakash, professor and Chair
Remote Sensing Group at the Geophysical Institute (GI). Prakash has been involved with the
remote sensing assessment of the Chena geothermal project and has been the Co-PI for the DOE
funded Pilgrim Hot Springs project where she lead the remote sensing based geothermal
exploration task. Task 2 will be led by Rainer Newberry, professor of Economic Geology,
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Department of Geology and Geophysics, University of Alaska Fairbanks. Newberry has
experience with assessing other interior Alaska geothermal systems and has worked previously
on the Seward Peninsula. Other UAF researchers include Dr. Christian Hasselwimmer (Task 1
and 3); Markus Mager (Task 4); Dr. Billy Muhando (Task 4); and Dr. Jessie Cherry (Task 1).
Resumes for UAF senior personnel are attached.
The University of Alaska Fairbanks also has extensive equipment and lab facilities that will be
made available to the project at no additional cost. The Geophysical Institute has recently
purchased new airborne instrumentation including: visible to near-infrared high resolution
multispectral camera (TetraCam), visible to near-infrared hyperspectral imager (Resonon Pika),
and an innovative miniaturised imaging radar (ImSAR-A) that complement existing airborne
sensors including thermal imaging cameras, optical cameras and GPS/INS units. The group is
also well equipped with field data collection instruments for validation of remote sensing data.
These include an ASD Field Spec Pro field spectrometers operating in 0.4 to 2.5 μm; FLIR S40
handheld camera; Trimble survey grade GPS units; Hobo thermistor units and temperature
loggers; and camping and survival gear. GI has excellent access to computer hardware resources
and maintains academic licenses for a diverse range of software for photogrammetry, remote
sensing, GIS and modeling. GI also has a license for 2d3 AltiMap and EnsoMosaic software
packages that are used to automate the registration and mosaicking of airborne imagery.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Effective communications plays a vital role in the success of any project. The City of Elim, as
the lead applicant, will help insure that happens. In order to integrate this project with the overall
planning process in the village, and to make sure key stakeholders stay informed and can provide
feedback, the City will convene periodic Stakeholder Advisory Group (SAG) meetings in Elim.
The SAG will provide leadership, direction, and oversight for the geothermal project from day
one. The SAG will help identify opportunities for synergy and coordination with other
community projects including wind energy, woody biomass, road construction, sanitation, waste
management, and other infrastructure projects. Funding agencies want projects that benefit the
entire community. SAG meetings are intended to help make sure this happens.
The Alaska Energy Authority (AEA), as the funding agency for this stage of the project, will be
invited to participate. Norton Sound Economic Development Corporation (NSEDC) which is
making $1 million available for the construction of “shovel ready” projects that benefit the entire
community might assist with future funding; they will be invited. The SAG will also include the
Alaska Village Electric Cooperative (AVEC), which provides electricity in the village and
recently received funding for a wind resource survey from AEA, and Kawerak Inc., the regional
Native non-profit, which provides energy research and technical support to Elim and other
Native Villages in the Bering Strait Region upon request.
SAG meetings will be held in Elim at the beginning and end of the project. At least two
teleconferenced meetings will be held at key decision points as outlined in section 3.2 The SAG
will be chaired by a representative from the City of Elim. The City, IRA Council, and Native
Corporation have committed to participating in SAG meetings; each will make an effort to have
a quorum present at SAG meetings so decisions can be made on the spot.
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The City of Elim will organize SAG meetings, arrange for travel, provide overnight lodging for
out of town participants, take minutes, and distribute meeting summaries. Additionally, the City
of Elim will submit required quarterly reports to the AEA, and the final report within two months
after the conclusion of the project. To ensure timely submission, any materials provided by other
project partners will be due to the City of Elim 2 weeks before each reporting deadline.
3.6 Project Risk
Discuss potential problems and how you would address them.
This project involves standard assessment and exploration techniques minimizing any perceived
risk. Project delays may occur related to weather conditions during field activities including the
aerial FLIR survey, and the drilling program. Scheduling field activities during the summer
months will mitigate most expected problems related to field work. Costs associated with the
project are well understood and an overrun is highly unlikely.
In addition, it is risky for someone unfamiliar with the area and / or is not confident in dealing
with large aggressive wildlife to venture into the survey area alone. The Elim IRA council
recognizes this, and has committed to the in-kind contribution of a driver and all terrain vehicle
to help mitigate the risk during the ground-based survey portions of this project.
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SECTION 4 – PROJECT DESCRIPTION AND TASKS
Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
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.
As a resource assessment, the objective of this project is to determine the potential extent and
amount of the energy resource that is available. It is very likely that an adequate resource exists
to operate at least one 280 kW Organic Rankine Cycle module, similar to the system installed at
Chena Hot Springs. It is possible that more than one unit could be installed. A recent survey of
nearby Granite Hot Springs, also on the Seward Peninsula and located in a similar geologic
setting, indicates a developable potential for that resource of up to 1MW. Unfortunately, the
distance to market (~40 miles) makes that system uneconomic to develop. Determining the
appropriate level of development, should it prove to be economic, is a prime objective of this
project.
According to the Energy Pathway, there are three potential alternative energy resources for Elim
– wind, geothermal, and wood. The Alaska Village Electric Association has received $142,500 in
funding through Round IV of the Renewable Energy Fund to install a met tower near Elim to
assess the local wind resource. Please find as letter of support from AVEC for this geothermal
exploration program attached. The Community of Elim is installing a Garn in a Box hydronic
heating system in conjunction with the local washeteria. The geothermal program is
complimentary to both AVEC and the city’sprojects, and will result in a thorough assessment of
all local options before future energy development decisions are made.
.
Geothermal resource development has been demonstrated at other sites in Alaska (Chena Hot
Springs), as well as other moderate temperature sites around the world. Recently, new binary
technology has resulted in power production from lower temperature resources such as expected
to exist near Elim. Unlike most renewable energy systems, geothermal energy can supply
baseload power and therefore is available 24 hours a day and 365 days a year. In addition to
power generation, it is also a viable resource to replace conventional fossil fuel for space heating.
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
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the number, size, age, efficiency, and type of generation.
AVEC currently provides power to the community of Elim with diesel generators. With the
combined capacity of 1,105kW, the Elim power plant has two Detroit Diesel generators (236kW,
7 years old and 363 kW, 7 years old, overhauled in 2008) and one MTU generator (506 kW, 7
years old).
The data indicates that peak demands in Elim have remained relatively constant over the past
five years with a maximum one-minute average peak of 269 kW occurring in 2002. Average
demand over the same period was approximately 145 kW.
The Elim plant generated 13.67 kWh for each gallon of fuel consumed in 2009.
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.
Elim uses diesel and heating oil as primary energy resources. In 2009, 82,189 gallons of diesel
fuel was consumed to generate 1,123,447 kWh. We estimate it could displace up to 90% of the
diesel fuel used for power generation in the community, or $285,789 annually based on Energy
Pathway projections. In addition, the Community of Elim is also heavily dependent on heating
fuel, with 76% of community residents heating with fuel oil at a cost of $5.59/gallon. At an
estimated fuel use of just over 100,000 gallons/year, $559,000 is a substantial cost to the
community.
A geothermal power plant, if developed, would decrease the amount of diesel fuel used for power
generation. The diesel generator use in Elim would be decreased thereby decreasing generator
operations and maintenance costs and enabling generators to last longer and need fewer
overhauls.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Electricity rates are subsidized by the Power Cost Equalization program for retail customers using
under 500 kWh / month. This class of customers would be unlikely to see a significant reduction
in electricity rates; benefits in this case would go to the state of Alaska. Users over 500 kWh, and
commercial users would benefit in the form of lower and more stabilized electricity prices.
Today, energy accounts for a large portion of the cost of doing business in Elim. Lower and more
stabilized electricity rates would increase the competitiveness existing local businesses, and might
possibly attract businesses from the outside.
According to the 2010 Alaska Energy Statistics, published by the Institute of Social and
Economic Research (ISER), there are currently 138 customers with a residential rate (before
PCE) of $.50/kWh in 2008. The number of customers and electric load has remained relatively
constant. The electricity consumption (kWh sold) in Elim in 2009 was 1,123,447 kWh. The load
is highest during the winter months, with the bulk of electricity consumed by residences and the
school.
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Elim has a subarctic climate with maritime influences. Norton Sound is ice-free generally
between mid-June and mid-November. Summers are cool and moist; winters are cold and dry.
Summer temperatures average between 46 to 62 °F; winter temperatures average -8 to 8 °F.
Annual precipitation averages 19 inches, with about 80 inches of snow. Like all of Alaska, Elim
is subject to long periods of darkness. Reliable electric service is essential for the operation of
home lighting, streetlights, and security lighting. Outside lighting greatly improves the safety of
village residents. Residents rely on subsistence resources including fish, seal, walrus, reindeer,
and beluga whale. Subsistence food is gathered and harvested and stored in refrigerators and
freezers. Refrigeration is essential for the extended storage of perishable foodstuffs, and reliable
electric service is essential for proper freeze storage of food. A geothermal power plant could
augment and improve the existing power generation system by incorporating a locally available
renewable resource.
In addition, 7.9% of the population is below the poverty line, and the median household income is
$40,179, which is 32% less than the State’s median household income of $59,036. A geothermal
project could stabilize and/or lower energy costs for the community, since there is no fuel cost
associated with geothermal power generation and non-fuel costs can be predicted reliably well
into the future.
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
Description of Technology: The Elim geothermal system is classified as a moderate temperature
resource, with maximum temperatures from geothermometers estimated at less than100 °C.
Steam is not expected to be produced in the system, and as such a binary power plant such as the
one installed at Chena Hot Springs will be required. The plant at Chena operates off 74 °C fluid
and generates ~400 kW (gross) of electric power.
Optimum Installed Capacity: Optimum installed capacity for power generation would be two
280 kW Pratt and Whitney Organic Rankine Cycle unit, for a total of 560 kW. Due to sub-optimal
temperature to operate such a system, the system is expected to operate at a reduced output of 400
kW. In addition, pumping loads for production and injection wells, plus electric loads for an air-
cooled condenser will further reduce output an estimated 100-125 kW, for a net power production
of 275-300 kW. Elim has an average electric load of 117 kW, and peak load of 269 kW.
Anticipated Annual Generation: If integration issues from use of a standard induction generator
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that is included with the PureCycle unit is resolved (addressed in Task 4), then the power plant
could conceivably offset nearly all of Elim’s electric load, which in 2009 totaled 1,123,447 kWh.
Anticipated Barriers: There are a number of barriers to implementing a geothermal project,
which will be further considered through this project. These include the distance of the resource to
the community, capital costs for development, and the remote nature of the project.
Basic Integration Concept: Integration with the existing diesel power plant, and operating the
geothermal plant in a stand-alone mode is not trivial. The PureCycle power module comes with an
induction generator, which relies on an existing electric grid to provide voltage and frequency to
sustain proper operation. This presents a problem when attempts are made to operate the system
without another source of generation, as has been demonstrated at Chena Hot Springs. There are
several solutions to this challenge, which will be explored as part of Task 4.
Delivery Methods: A new transmission line would need to be built to connect the resource to the
community. Locating the plant near the resource is the most likely development scenario, as it will
be necessary to re-inject some or all of the produced fluid back into the geothermal reservoir.
Assuming a power purchase agreement was developed with AVEC, the existing distribution
system would be adequate to deliver power to customers. We will also consider whether it is
feasible to pipe hot water to the community (one way) to serve customers and offset heating fuel
costs.
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.
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Elim Native Corporation is a partner in this proposal. Elim Native Corporation has all legal rights
and privileges as a landowner, including the right to conduct scientific research on hot springs and
use the results of such research without compensation to the U.S. We do not anticipate any issues
with land access for the proposed scope of this project. A map detailing land ownership is
included below.
Figure 5. Land Ownership map of area near Elim. Elim Hot Springs are located on lands
owned by Elim Native Corporation.
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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
Elim Native Corporation will work with UAF to create a land use agreement that will permit
researchers to access the areas of interest for the duration of this project. No formal state or federal
permits will be required to complete the project.
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
It is not anticipated that this project would have any environmental impact. Researchers will
access remote areas through established trails, by air, or in the winter months when the snowpack
will minimize any damage to the tundra.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
This proposal is geared toward a preliminary exploration and feasibility assessment, which is
loosely included under prospecting by Hattenburg, Dilley, and Linnell. We are requesting
$415,871 for this effort, with an additional $112,037 provided as an in-kind contribution by
project partners.
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According to an analysis by Hattenburg, Dilley, and Linnell, prepared 4-24-09 for the Alaska
Energy Authority and used as a basis for the Energy Pathway cost estimates, developing a deep
resource for Elim would require a capital investment of $38-$52M (see Figure 6 below). However,
the analysis assumed the depth to the resource was 5000 ft, and 2 full scale production wells
(costing $18-$36M) would be required. This is not consistent with what is known about Central
Alaska Hot Springs Belt (CAHSB) geothermal systems. Based on a preliminary analysis, it is
expected that this system would have many similarities to the Chena geothermal system, and could
be exploited in a similar manner. Accessing depths of 5000 ft are unlikely to be required, and
production and injection wells closer to 500 ft in depth would be a more likely scenario given the
project size. This would drastically reduce project costs, and drilling costs would be more
commensurate with the estimated costs for the Manley (shallow) option of $1-$3M for exploration
drilling and $3-7M for production drilling. This would reduce the estimate by Hattenburg, Dilley,
and Linnell to $15M-$37M.
Figure 6. Excerpt from geothermal energy project cost memo provided to AEA by
Hattenburg, Dilley, and Linnell 4-24-09.
In addition, there are other potential funding sources (and benefits) for some aspects of a project.
For example, one of the major costs for development of the resource is associated with the
transmission line and road ($5-10M). Elim has identified a route (#2517, see map in Figure 7
below) that would pass through the main hot springs area, that the city can nominate for
development under Alaska’s Roads to Resources program. If the cost of the road is funded
separately from the geothermal development project, it will significantly help with improving the
economics.
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Figure 7. Existing and proposed routes near the community of Elim.
Note proposed route 2517 runs adjacent to the main exploration area.
According to the Energy Pathway, total estimated annual fuel costs for Elim (electricity and
heating) is $813,544. This means that Elim is on track to spend over $16M on diesel fuel over the
next 20 years. If geothermal energy could be used to offset most of this demand, the savings could
be substantial assuming costs would be within the same order of magnitude as the Chena project
(~$10M). This would also require piping geothermal fluid to Elim to replace home heating fuel,
which would then be discharged and not pumped back into the system. An estimated 200gpm
would be required to meet the majority of community heating loads, which is similar to what is
used for the district heating system at Chena Hot Springs. The geothermal fluid used for space
heating at Chena is similarly not re-injected into the reservoir.
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.)
N/A
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
The proposed survey will help determine if geothermal energy is feasible and economically viable
for the community of Elim. By definition, an economically viable project will bring down and
stabilize energy costs over the long term for the benefit of the entire community. If Elim is to
utilize up to $1 million in assistance from the Norton Sound Economic Development Corporation
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Community Energy Fund to leverage future proposals for construction, they must be able to
demonstrate that their project is shovel ready, and that it will produce sustained benefits for the
entire community.
Alaska Village Electric Cooperative currently provides electricity in Elim. Per the attached letter
of support, “AVEC understands the City of Elim, the Elim Native Corporation, and the Elim Tribe
are working to prepare a grant application to study geothermal energy feasibility at Elim Hot
Springs. The governing entities of Elim will work with AVEC to ensure any future project would
be able to connect and operate in conjunction to the existing power generation system in Elim. We
support feasibility investigation of this project and will work with the governing bodies of Elim to
help move this investigation forward.”
If village leaders decide it is in the best interest of the community for an independent power
producer to own, operate, and maintain the project for its useful life, power will be priced at a
cost-based, rather than an avoided-cost rate.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
Please see attached worksheet.
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings, and
how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable
energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
Potential annual fuel displacement: The project could decrease diesel use by up to 180,657
gal/yr, and up to 3.6M gallons over the lifetime of a geothermal project. Based on cost estimates
from the Energy Pathway, this could save the community over $16M in diesel fuel at current
pricing. The earliest a project could begin operation would be 2014-15.
Anticipated annual revenue/Potential additional annual incentives/Potential additional
annual revenue streams: Because this project is in the feasibility and concept design stage,
revenue and incentives are unknown. However, geothermal energy is eligible for federal tax
credits, and additional income could be generated by the project through the sale of green tags.
Non-economic public benefits: For this resource assessment, an added benefit is contributing to
the overall body of knowledge related to the Central Alaska Hot Springs Belt (CAHSB). With the
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exception of Pilgrim Hot Springs, these systems seem to have common geologic factors
constraining them, and better understanding of any one system can allow better informed
decisions to be made about developing others.
Should a geothermal project be developed, additional benefits would include more stable and
predictable energy costs for the community and provide long-term socio-economic benefits to
village households. Locally produced, affordable energy could help avert rural to urban migration,
which would help larger Alaska communities. In addition, stabilized energy costs would allow
community entities, including the City and Tribe to plan and budget for important community
infrastructure listed in the Elim Local Economic Development Plan 2005-2010 Addendum B
Updated Priorities (Kawerak, February 2009) including a teen center and tribal hall (community
infrastructure social/cultural priorities 1, 2). Elim residents health and safety would benefit from
the environmental benefits resulting from a reduction of hydrocarbon use, including:
Reduced potential for fuel spills or contamination during transport, storage, or use (thus
protecting vital water and subsistence food sources)
Improved air quality
Decreased contribution to global climate change from fossil fuel use
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
Because this project is in the feasibility and concept design stage, a business structure would not
be appropriate at this phase. However, the resource is expected to underlie property owned wholly
(surface and subsurface) by Elim Native Corporation, one of the partners on this proposal.
Therefore, it is presumed that they would either own any proposed development project, or
contract with a third party entity to develop the resource.
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.
We hope to begin this feasibility assessment at the earliest possible date after award, ideally in
August 2012. We may request reimbursement of costs to July 1, 2012 in order to allow us to
begin mobilizing for the 2012 field season and avoid delaying the project a full year.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 26 of 30 7/1//2011
The City of Elim has not been awarded any geothermal grants, but has successfully completed a
number of grants in the past as outlined in section 3.1. However, this project compliments an
award to assess the wind resource in Elim, funded under Round IV of the Renewable Energy
Fund in the amount of $142,500 (AVEC).
In addition, a portion of the match funding ($94,477) will be provided by the Department of
Energy through an existing award (DE-EE0002846) to UAF for the project entitled “Validation of
Innovative Exploration Techniques, Pilgrim Hot Springs, Alaska”. The total project budget is
$4.3M, and the project is scheduled to end in December 2012. The in-kind cost share would
consist of taking the techniques learned under the DOE award and applying those techniques to
the Elim geothermal resource. Specifically, as in-kind cost share, UAF would use techniques to
correlate heat flow to sustainable power generation for moderate temperature geothermal systems
of analysis and apply those techniques to determine a potential development strategy for the
proposed Elim project. A letter from DOE allowing this match funding is attached.
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.
In 2009 Elim resolved that “identifying, developing and implementing local and renewable
energy resources in a sustainable, fiscally and environmentally responsible manner is a priority.”
Geothermal is identified as the top priority in a 2009 update to Elim’s Local Economic
Development Plan. As evidenced by the attached letters and resolutions of support, geothermal
enjoys unanimous support from all three village entities. No local opposition to the project is
evident or anticipated.
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.
Include an estimate of budget costs by milestones using the form – GrantBudget5.doc
The following narrative corresponds with budget requests for the City of Elim Geothermal
Resource Assessment.
Salaries & Fringe Benefits
Senior Personnel. Elim salary costs will fund project logistics, oversight and participation by
Elim city staff, who will contribute to logistical and administrative tasks related to this project.
Total salary and fringe costs: $57,000.
Travel
Funds are requested to support travel to Elim for SAG meetings related to the project. Two in -
person meetings are planned, with 1 traveler from Unalakleet (NESDC), 2 from Anchorage
(AVEC) and 3 from Fairbanks (UAF). Airfare costs are estimated at $800 per RT ticket from
Unalakleet, $1,000 from Anchorage and $800 from Fairbanks. Per diem is estimated at $52.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 27 of 30 7/1//2011
Miscellaneous travel costs of $125 per person per trip are also added (2 trips, 6 people), to
anticipate for additional expenses involved in remote travel in Alaska. All pricing is based on
current pricing, US Government figures, and UA Board of Regents policy. Total cost to Project:
$13,000.
Other Direct Costs
Subawards. Subcontracts will be issued to the University of Alaska Fairbanks for research on
this project. Letters of commitment and detailed budgets are included in this proposal. Total cost
of subawards to project: $345,871.(see corresponding budget narrative, below).
Cost Sharing
Additional cost share is provided by the City of Elim in the form of lodging for researchers in the
city. Cost is estimated at $189/night, for an anticipated 10 nights (2 meetings, 5 people needing
lodging), plus an estimated 30 nights for researchers during project work. Total cost share from
City of Elim: $7,560.
Cost share is also provided by the Elim IRA Council, providing in-kind support in the form of a
driver ($40/hour) who will provide ATV access to field sites as well as transport to and from the
airport for research and meeting visits. (250 hour max). Total Elim IRA Council cost share for
this project: $10,000.
Total cost share: $17,560.
The following narrative corresponds with budget requests for contributions from the University of Alaska
Fairbanks to the City of Elim Geothermal Resource Assessment.
Salaries
Senior Personnel. Funding to support a total of 174 hours is requested for the Principal Investigator
(Holdmann) of this project. Per UAF policy, executive staff receive leave benefits at a rate of 20.5%,
calculated on salary. Total cost to project: $14,040.
Funding to support a total of 174 hours is requested for the co- Investigator (Prakash) of this project. Per
UAF policy, faculty receive leave benefits at a rate of 1.7%, calculated on salary. Total cost to project:
$10,395.
Other Personnel. Funding to support 174 hours of salary is requested for Research Associate (Newberry),
who will participate in project tasks. Per UAF policy, faculty receive leave benefits at a rate of 1.7%,
calculated on salary. Total cost to project: $14,410.
Funding to support 40 hours of salary is requested for Research Associate (Cherry), who will participate
in project tasks. Per UAF policy, faculty receive leave benefits at a rate of 1.7%, calculated on salary.
Total cost to project: $2,058.
Funding to support 348 hours of salary is requested for Research Associate (Haselwimmer), who will
participate in project tasks. Per UAF policy, non-union faculty receive leave benefits at a rate of 2.2%,
calculated on salary. Total cost to project: $9,418.
Funding to support 174 hours of salary is requested for Research Associate (Mager), who will participate
in project tasks. Per UAF policy, staff receive leave benefits at a rate of 21.2%, calculated on salary. Total
cost to project: $6,154.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 28 of 30 7/1//2011
Funding to support 174 hours of salary is requested for Research Associate (Pathan), who will participate
in project tasks. Per UAF policy, staff receive leave benefits at a rate of 21.2%, calculated on salary. Total
cost to project: $5,915.
Funding to support 174 hours of salary is requested for Research Associate (Muhando), who will
participate in project tasks. Per UAF policy, faculty receive leave benefits at a rate of 1.7%, calculated on
salary. Total cost to project: $8,880.
Support is requested for two Masters Level Graduate Student Research Assistants for one year. Students
work 20 hours per week during the academic year (760) and 40 hours per week during the summer (560),
for a total of 1320 hours. INE/ACEP students are paid salary plus benefits on a per hour basis. GI grad
students are paid on a stipend basis- $994.57 per pay period, with 19 pay periods per academic year and 7
pay periods per summer. Total cost to project: $55,677.
Fringe Benefits
Staff benefits are applied according to UAF’s benefit rates for FY12, which are negotiated with the Office
of Naval Research (ONR) annually. Rates are 31.1% for executive salaries, 31.6% for senior salaries,
31.1% for non-union faculty, 45.7% for staff, and 8.7% for graduate and undergraduate students
(summers only). Additionally, UAF requires that any graduate student supported by a research project
also receive health insurance while working on the project. Costs for academic and summer coverage in
FY12 are $1500 with an anticipated 10% annual increase.
Total cost to project: $30,060.
Travel
Funds are requested to support travel to field sites for this project. Airfare costs are estimated at $800 per
RT ticket (Fairbanks to Elim, AK). Per diem is estimated at $202. All pricing is based on current pricing,
US Government figures, and UA Board of Regents policy. Total cost to Project: $14,862.
Other Direct Costs
Materials & Supplies. A total of $9,247 is requested for supplies, primarily for the purchase of a weather
station, satellite data and field supplies.
Publication & Dissemination. A total of $2,000 is requested to fund presentation and dissemination
costs, to defray the expenses of publishing our results in professional journals and other dissemination
costs.
Services. Funds of $5,000 are requested to cover the cost of payment for local hires, who will contribute to
Task 2. Funds of $10,396 are requested for an airborne survey. Funds of $40,000 are requested to cover the
cost of helicopter rental, which is necessary to gain access to field site(s). Total cost to the project: $55,396.
Consultant Services. Funds are requested for consultant services provided by Dick Benoit, who will
contribute xxx to the project. Total cost to project: $2,500.
Sample analysis. Funds are requested to support DRI (water) analysis necessary for this project. Samples
are $750/sample, 12 samples are needed. Rock sample analysis is also necessary for the project, at a cost
of $34/sample for 30 samples. Total cost to project: $10,020.
Other. UAF requires that any graduate student supported by a research project over the course of the
academic year also receive tuition support for the life of the project. Costs are $15,048 (tuition) and costs
increase by 10% annually. In addition. GI graduate students receive funds for fees, totaling $1984 in FY12,
for a total of $32,080.
Indirect Costs
Facilities and Administrative (F&A) Costs are calculated according to the existing MOA between UA and
the State of Alaska, at 25% of the Modified Total Direct Costs (MTDC). MTDC includes Total Direct
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 29 of 30 7/1//2011
Costs minus tuition and other student support, subaward amounts over $25,000, and equipment. A copy
of the agreement is available at:
http://www.uaf.edu/files/osp/UA-FY-11-13-Pred-FA-Rate-Neg-Agrmt.pdf
Cost Sharing
Cost sharing for this proposal is provided in the form of person hours from investigators who will
coordinator work on this project with a related geothermal assessment being conducted at Pilgrim Hot
Springs concurrent to this work. One month of salary (174 hours) will be provided by each Holdmann,
Prakash and Mongrain, and three months (522 hours) from Haselwimmer, along with related benefits for
each. Total UAF cost share for this project: $94,477.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 30 of 30 7/1//2011
SECTION 10 – 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. Cost Worksheet per application form Section 4.4.4.
C. Grant Budget Form per application form Section 9.
D. Letters demonstrating local support per application form Section 8.
E. An electronic version of the entire application on CD per RFA Section 1.7.
F. Authorized Signers Form.
G. 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.
H. 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
Signature
Title
Date
Renewable Energy Fund Round 5
Project Cost/Benefit Worksheet
RFA AEA12-001 Application Cost Worksheet Page 1 7-1-11
Please note that some fields might not be applicable for all technologies or all project
phases. The level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. Year-round, 100% availability. Project would be
designed for a sustainable output. Can serve as
base load.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. 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 3 generators
ii. Rated capacity of generators/boilers/other 236 kW, 363 kW, 506 kW
iii. Generator/boilers/other type diesel
iv. Age of generators/boilers/other Overhauled: 2003, 2008, 2003 (respectively)
v. Efficiency of generators/boilers/other 13.67 kWh/gal (reported by AVEC)
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $140,000 (labor and non-labor combined)
ii. Annual O&M cost for non-labor N/A
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] 1,123,447 kWh (2009)
ii. Fuel usage
Diesel [gal] 82,189 gal (reported by AVEC)
Other N/A
iii. Peak Load 235 kW
iv. Average Load 128 kW
v. Minimum Load unknown
vi. Efficiency 13.67 kWh/gal
vii. Future trends N/A
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 82,189 (based on Energy Pathway)
ii. Electricity [kWh] N/A
iii. Propane [gal or MMBtu] N/A
iv. Coal [tons or MMBtu] N/A
v. Wood [cords, green tons, dry tons] 24% of community heating based on 2000 census data
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 5
Project Cost/Benefit Worksheet
RFA AEA12-001 Application Cost Worksheet Page 2 7-1-11
vi. Other N/A
3. 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]
Geothermal, resource assessment would provide
preliminary estimate of optimal installed capacity based on
resource, but expected 280kW (gross)
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 1,248,300 kWh based on 50% capacity factor and 95%
availability.
ii. Heat [MMBtu] Possibility for limited district heating system, will be
assessed as part of project.
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] N/A
ii. Coal [tons or MMBtu] N/A
iii. Wood [cords, green tons, dry tons] N/A
iv. Other N/A
4. Project Cost
a) Total capital cost of new system Unknown, task 4 addresses this question
b) Development cost Unknown, task 4 addresses this question
c) Annual O&M cost of new system Unknown, task 4 addresses this question
d) Annual fuel cost none
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 1,248,300 kWh based on 50% capacity factor and 95% availability.
ii. Heat Possibility for limited district heating system, will be assessed as part of project.
iii. Transportation none
b) Current price of displaced fuel .29cents/kWhr; 3.95/gal based on Energy Pathway
c) Other economic benefits N/A
d) Alaska public benefits Information applicable to other CAHSB sites
6. Power Purchase/Sales Price
a) Price for power purchase/sale N/A
7. Project Analysis
a) Basic Economic Analysis
Renewable Energy Fund Round 5
Project Cost/Benefit Worksheet
RFA AEA12-001 Application Cost Worksheet Page 3 7-1-11
Project benefit/cost ratio Cannot be determined at this time.
Payback (years)
Renewable Energy Fund Grant Round V Grant Budget Form 7-1-11
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
(List milestones based on phase and type of project.
See Attached Milestone list. )
$ $ $
Task 1: Thermal infrared Mapping and Analysis
Around Community of Elim
June 2013 $97,313 $24,840 $122,153
Task 2: Ground Based Reconnaissance May 2013 $105,235 $31,906 $137,141
Task 3: Conceptual Model of the System April 2013 $74,200 $32,077 $106,277
Task 4: Preliminary Design Analysis and Cost July 2013 $139,123 $23,214 $162,337
$ $ $
$ $ $
$ $ $
$ $ $
$
$
TOTALS 415,871 112,037 $527,908
Budget Categories:
Direct Labor & Benefits $57,000 $ $57,000
Travel & Per Diem $13,000 $7560 $20,560
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $10,000 $10,000
Construction Services $ $ $
Other (Subaward to UAF) $345,871 $94,477 $440,348
TOTALS $415,871 $112,037 $527,908
Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)-
Add additional pages as needed
Renewable Energy Fund Grant Round V Grant Budget Form 7-1-11
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 Grant Round V Grant Budget Form 7-1-11
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
(List milestones based on phase and type of project.
See Attached Milestone list. )
$ $ $
Task 1: Thermal infrared Mapping and Analysis
Around Community of Elim
June 2013 $79,813 $20,450 $100,263
Task 2: Ground Based Reconnaissance May 2013 $87,735 $27,516 $115,251
Task 3: Conceptual Model of the System April 2013 $56,700 $27,687 $84,387
Task 4: Preliminary Design Analysis and Cost July 2013 $121,623 $18,824 $140,447
$ $ $
$ $ $
$ $ $
$ $ $
$
$
TOTALS 345,871 94,477 $440,348
Budget Categories:
Direct Labor & Benefits $157,007 $63,195 $220,202
Travel & Per Diem $14,862 $ $14,862
Equipment $ $ $
Materials & Supplies $9,247 $ $9,247
Contractual Services $69,916 $ $69,916
Construction Services $ $ $
Other $32,080 $ $32,080
F&A @ 25% $62,759 $31,282 (F&A @
49.5%) $94,041
TOTALS $345,871 $94,477 $440,348
Renewable Energy Fund Grant Round V Grant Budget Form 7-1-11
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
August 15,2011
To:Alaska Energy Authority
813 W.Northern Lights Blvd.
Anchorage,Alaska 99503
Attn:Butch White,Grants Administrator
From:City of Elim
Crystal Ivanoff-City Clerk
P.O.Box 39009
Elim,Alaska 99739 Ph:890-3441 Fax:890-3811 cityofelim@yahoo.com
Dear Sir;
This is a formal endorsement from the City of Elim for the Resource Assessment/Feasibility
Analysis of potential geothermal sites and associated transmission lines near the community.
Elim is taking the lead and working closely with the Elim IRA,Elim Native Corporation,University
of Alaska-Gwen Holdmann and Anupma Prakash,Walter Rose with Kawerak on Round 5 for
Resource Assessment /Feasibility Analysis of potential geothermal sites near the community.
Concerning the ownership the Elim Native Corporation owns the land at the Elim Hot Springs
and no restrictions apply for development.On the Clear Creek Hot Springs according the BLM
15%surrounding the hot springs can be developed,As per Robert Keith-President Elim Native
Corporation,President of Elim IRA Council.
The point of contact is Crystal Ivanoff-City Clerk at the above address and phone number.This
has been ongoing for quite a number of years and Elim looks forward to working with all parties
involved to reaching the goal of finally throwing the switch for Geothermal Electricity in our
area.The Elim City Council meets on the first Monday of every month,the Elim IRA the first
tuesday and the Elim Native Corporation the first thursday of every month.Thank you for your
time and look forward to working with you on this important issue.
Sincerely;
Edwin Kotongan-Mayor/City of Elim
Crystal Ivanoff-City Clerk-City of Elim
08 United States Dept.of Agriculture
$39,751.Water Treatment Study
-ANTHC -RURAL DEVELOPMENT FILTERATION REPLACEMENT
09 USDA $75,000.00 ANTHC Preliminary Engineering/Environmental Report
Evaluate Existing MasterPlan &Sanitation Facilities &Develop a new sanitation
improvement plan and complete a water resource Investigation
07 Dept of Commerce,Community &Economic Development $25,000.00
08 Department of Commerce,Community &Economic Development -DCRA Community
Playground $33,104.76
06 State of Alaska DCCED/ANTHC Water &Sewer Sanitary Master Plan /Solid Waste
Landfill Assessment $200,000.00
98 Municipal Landfill Project DCCED$147,660.00
08 Brownsfield Assessment Old AVEC site
09 Brownsfield Assessment City Shop
City of Elim
P.O.Box 39009
Elim,Alaska 339739
Ph:907-890-3441
Fax:907-890-3811
Email:cityofelim@yahoo.com
List of Employees
Crystal Ivanoff -City Clerk
Esther Aukongak -Bookkeeper
RaeLene Keith -Office Clerk
Edwin Kotongan -Mayor
23 August 2011
City of Elim
P.O. Box 39009
Elim, Alaska 99739
United States
Re: Letter of Commitment for Proposal to City of Elim Geothermal Resource Assessment
The University of Alaska Fairbanks is pleased to collaborate with the City of Elim on the proposal
for geothermal resource assessment involving the Elim (Kwiniuk) Hot Springs, which is being
submitted to the Alaska Energy Authority. The Principal Investigator from UAF is Gwen
Holdmann, director of Alaska Center for Energy and Power at UAF.
In support of this project, UAF is prepared to commit funds up to $100,000 in cost share. These
funds are part of a complementary research project funded by the Department of Energy involving
assessment of other geothermal resources in western Alaska.
The appropriate administrative and programmatic personnel at UAF are aware of the pertinent
federal regulations and policies, and we are prepared to enter into a subcontract with the City of
Elim that ensures compliance with all such policies, should this proposal be funded. A statement of
work and our itemized budget for this subaward are attached.
If you need additional information, please feel free to call my office at (907) 474-1851.
Sincerely,
Andrew M. Gray
Gwen Holdmann <gholdman@alaska.edu>
4 messages
Jacobi, Melissa <melissa.jacobi@go.doe.gov> Mon, Aug 22, 2011 at 7:15 AM
To: Gwen Holdmann <gwen.holdmann@alaska.edu>
Cc: "Hass, Eric" <eric.hass@go.doe.gov>, "Wozniak, Genevieve" <genevieve.wozniak@go.doe.gov>, "Clemmens,
Sarah" <sarah.clemmens@go.doe.gov>
University of Alaska, Fairbanks (UAF) notified the Department of Energy
(DOE) that it intends to use a portion of the work carried out under
award DE-EE0002846 "Recovery Act: Validation of Innovative Exploration
Techniques at Pilgrim Hot Springs, Alaska," ("DOE award") as in-kind
cost share to support a proposal (Elim project) to the Alaska Energy
Authority - Renewable Energy Grant Program. UAF has represented that
work funded in part under the DOE award will not be applied as cost
share for any other federally-assisted project or program and the State
of Alaska Renewable Energy grant program is funded with State
appropriations. In addition, UAF represented that the in-kind cost share
for the proposed Elim project would consist of taking the techniques
learned under the DOE award and applying those techniques to the Elim
project. Specifically, as in-kind cost share, UAF would use techniques
to correlate heat flow to sustainable power generation for moderate
temperature geothermal systems of analysis and apply those techniques to
determine a potential development strategy for the proposed Elim
project. UAF represented that it would act within the terms of the
intellectual property provisions under the DOE award. Further, UAF
asserted that it does not intend to use funds received under the DOE
award for the Elim project, only the techniques described above would be
applied as in-kind cost share.
Based on these representations by UAF, DOE has determined that the
proposed scenario described above does not conflict with the award terms
and conditions for DE-EE0002846 "Recovery Act: Validation of Innovative
Exploration Techniques at Pilgrim Hot Springs, Alaska."
_______________________________________________________________
Proposal submitted by the Recipient:
The community of Elim, which is about 70 miles south of Nome, has
requested our assistance with applying for a State of Alaska Renewable
Energy grant to assess a geothermal resource near their community. I was
wondering if you would allow us to use a small portion, say $100k, of
our DOE Pilgrim project as an in-kind matching contribution. Assuming
our extension request is granted to the end of 2012 (has it been?),
there would be 6 months of overlap between the projects. The specific
work being done under the Pilgrim award that would be appropriate is our
effort to correlate heat flow to sustainable power generation for
moderate temperature geothermal systems. The results we develop for
Pilgrim should apply to the Elim area resource as well, and so should
help us with determining a potential development strategy for the site.
UA Mail - DE-EE0002846 Recovery Act: Validation of Innovative Explor... https://mail.google.com/mail/?ui=2&ik=df595fd2fa&view=pt&q=meliss...
1 of 3 8/26/2011 12:55 AM
We have already matched $2M of our Pilgrim DOE award with our state
grant, but not all of it and not specifically that task.
UAF said it looks OK from their end as long as you agree to it.
Sincerely,
Melissa Jacobi
Contracting Officer
US Department of Energy
Golden Field Office
melissa.jacobi@go.doe.gov
303-275-6042
Effective Monday, August 29, 2011 my new phone number will be
720.356.1658.
Gwen Holdmann <gholdman@alaska.edu> Mon, Aug 22, 2011 at 8:59 AM
To: "Jacobi, Melissa" <melissa.jacobi@go.doe.gov>
Cc: Gwen Holdmann <gwen.holdmann@alaska.edu>, "Hass, Eric" <eric.hass@go.doe.gov>, "Wozniak, Genevieve"
<genevieve.wozniak@go.doe.gov>, "Clemmens, Sarah" <sarah.clemmens@go.doe.gov>
Thanks Melissa,
This letter perfectly summarizes our request. Would you like a copy
of the final submission for your records?
Gwen
Sent from my iPhone
On Aug 22, 2011, at 7:15 AM, "Jacobi, Melissa"
[Quoted text hidden]
Gwen Holdmann <gholdman@alaska.edu> Mon, Aug 22, 2011 at 9:00 AM
To: Walter Rose <WRose@kawerak.org>
DOE has approved our match. That is good news.
Sent from my iPhone
Begin forwarded message:
From: "Jacobi, Melissa" <melissa.jacobi@go.doe.gov>
Date: August 22, 2011 7:15:02 AM AKDT
To: "Gwen Holdmann" <gwen.holdmann@alaska.edu>
Cc: "Hass, Eric" <eric.hass@go.doe.gov>, "Wozniak, Genevieve" <genevieve.wozniak@go.doe.gov>,
"Clemmens, Sarah" <sarah.clemmens@go.doe.gov>
Subject: DE-EE0002846 Recovery Act: Validation of Innovative Exploration Techniques at Pilgrim Hot
Springs, Alaska
UA Mail - DE-EE0002846 Recovery Act: Validation of Innovative Explor... https://mail.google.com/mail/?ui=2&ik=df595fd2fa&view=pt&q=meliss...
2 of 3 8/26/2011 12:55 AM
[Quoted text hidden]
Jacobi, Melissa <melissa.jacobi@go.doe.gov> Mon, Aug 22, 2011 at 1:01 PM
To: Gwen Holdmann <gholdman@alaska.edu>
Cc: Gwen Holdmann <gwen.holdmann@alaska.edu>, "Hass, Eric" <eric.hass@go.doe.gov>, "Wozniak, Genevieve"
<genevieve.wozniak@go.doe.gov>, "Clemmens, Sarah" <sarah.clemmens@go.doe.gov>
Gwen,
Thank you, but a copy of your submission is not necessary. Please let us
know if you need anything else.
Thanks,
Melissa
Effective Monday, August 29, 2011 my new phone number will be
720.356.1658.
[Quoted text hidden]
UA Mail - DE-EE0002846 Recovery Act: Validation of Innovative Explor... https://mail.google.com/mail/?ui=2&ik=df595fd2fa&view=pt&q=meliss...
3 of 3 8/26/2011 12:55 AM
Grant Documents Authorized Signers
Please clearly print or type all sections of this form.
Community/Grantee Name:
Term Signature
I authorize the above person(s)to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signa~ure
Grantee Contact Information:
Entit Type For-profit or non-profit status):
Mailin Address:
Phone Number:
Fax Number:
E-mail Address:
Fiscal Year End:
Federal Tax 10 #:
Please submit an updated form whenever there is a change to the above information.
Please return the original completed form to:
Alaska Energy Authority
813 W.Northern Lights Blvd.
Anchorage,AK 99503
Attn:Butch White,Grants Administrator I~·AlASKA~
.{)..........•........
..(20)ENERGY AUTHORITY
C:IUserslMayorlAppDatalLocallMicrosoftlWindows \Tern pora ry Internet
Fi les \Low\Conte nt.1 E5\R HVVD LZJ\G ra ntDocurn entsAutho rizedSigners5 [1].doc
Grant Documents Authorized Signers
Please clearly print or type all sections of this form.
Authorized Grant Signer(s)·
Printed Name Title Term Signature
0Y\{S1z'Ll~\vancft-Llty CitriC ~O~D
I authorize the above person(s)to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name
)
Title Term Signature
Grantee Contact Information:
Federal Tax 10 #:
Phone Number:
Mailing Address:.tJ ()~q/J 0
Fax Number:
E-mail Address:
Fiscal Year End:
Entity Type (For-profit or non-profit status):
Please submit an updated form whenever there is a change to the above information.
Please return the original completed form to:
Alaska Energy Authority
813 W.Northern Lights Blvd.
Anchorage,AK 99503
Attn:Butch White,Grants Administrator I~_AlASKA
..:~.)~NERGY AUTHORITY
C:\Users\Mayor\AppData\Local\Microsoft\Windows\T em po ra ry Internet
Files\Low\Content.IE5\RHVVDLZJ\GrantDocumentsAuthorizedSigners5[1].doc
,'-
*SINGLE ROOM*
ROOM #1
SINGLE OCCUPANCY -$100.00 /NIGHT
DOUBLE OCCUPANCY -$150.00 /NIGHT
Revised:February 1,2011
*SINGLE ROOM*
ROOM #2-
SINGLE OCCUPANCY-$100.00/NIGHT
DOUBLE OCCUPANCY-$150.00/NIGHT
Revised.February 1,2011
*APARTMENT RATES *
ROOM #3
$189.00/NIGHT-PER PERSON
$189.00 /NIGHT -PER PERSON
Revised:February 1,2011
CITYOFELIM
ELIM,ALASKA 99739
Effective May 10,2011
Equipment Rental Rates:
o
Equipment HrRate Wet Rate Wetw/Op Daily Weekly
(Short Tenn)(with fluids (with fluids,fuel **(~ith fluids,w/o and fuel)and Operator)
fuel)
1.D8K 150.77 164.83 189.83 951.55 4,500.00
2.D8 80.00 88.44 113.44 634.37 2,537.48
3.Dump Truck 75.00 82.04 107.04 502.38 1,972.90
4.644C 150.00 157.04 182.04 544.32 2,159.87
5.950F -150.00 158.44 183.44 697.80 2,762.144;}",;
6.140G ..,,,.150.00 158.44 183.44 697.80 2,731.00
7.450JD 75.00 77.81 .-1:02.81 ,404:75 1,567.98
8.410E 100.00 104.23 U9.23 446.61 1,723.74
9.Fuel Truck 50.00 60.31 85.31 200.00
10.FlatBed 75.00 200.00
11.Davis Trailer ,25.00-
12.Excavator Hitachi 150.00 158.44 183.44
13.972 Loader 182.00
14.D4H Tractor
15.450D
16.Caseloader -'
•
o
Note:
*1.For Daily and Weekly dry rates renters shall be responsible for operator's wages,maintenance,
fueling,repair,and replacement or parts while equipment is under their control.(Chapter
39,SECTION 3)
2.Day rate is based on an 8 hour day,then prorated.
3.Weekly rate is based on a 40 hour week,than prorated.
4.Rates are subject to change any time.'
5.Deposit on estimated rental will be required unless credit has been established.
6.City approved operators only or CDL certified.
7.The City reserves the right to refuse-to rent equipment.
8.Must use City Equipment Logs and submit figur~~.only.
-
4,no-I iA}I)Ykl''-j
Resolution # __________
A RESOLUTION SUPPORTING THE CITY OF ELIM / UNIVERSITY OF ALASKA FAIRBANKS APPLICATION TO
THE ALASKA RENEWABLE ENERGY GRANT FUND ROUND V “COMMUNITY OF ELIM GEOTHERMAL
RESOURCE ASSESSMENT” AND AUTHORIZING IN-KIND CONTRIBUTIONS
WHEREAS, The Native Village of Elim is a federally recognized tribe under the Indian Reorganization act
of 1934; and
WHEREAS, The Native Village of Elim, acting as a recognized governing body has the authority to
establish relationships and enter into contracts for the benefit and well being of the Tribe; and
WHEREAS, The Native Village of Elim consists of 7 board members to oversee 490 tribal members; and
WHEREAS, The Native Village of Elim resolution #2009-13 (attached) “resolved identifying, developing
and implementing local and renewable energy resources in a sustainable, fiscally and environmentally
responsible manner is a priority; and
WHEREAS, multiple geothermal anomalies, in the form of hot springs, are known to exist on rugged,
difficult to access Tribal land nearby the Elim; and
WHEREAS, the Elim “Local Economic Development Plan” updated in 2009 identifies geothermal as the
number one economic development priority; and
WHEREAS, a scientific resource assessment and feasibility study, leading to a better understanding of
the benefits and costs of geothermal options available, is the first step towards attaining that priority:
THEREFORE BE IT RESOLVED, The Native Village of Elim supports the University of Alaska Fairbanks
proposal to the State of Alaska Renewable Energy Grant Fund round V “Community of Elim Geothermal
Resource Assessment;” and
BE IT FURTHER RESOLVED THAT, the Native Village of Elim will provide local support to this project
including participating in four Stakeholder Advisory Group meetings (2 in Elim, 2 by phone), providing
additional information on the location of potential geothermal anomalies, and assisting UAF researchers
in safely and effectively accessing remote sites through the in-kind contribution of an all terrain vehicle
and a driver who is familiar with the area to be surveyed and experienced in dealing with large
aggressive wild animals, for a period not to exceed 250 hours over the course of the project. The Native
Village of Elim will also provide transportation to and from Elim airport for UAF researchers and out of
town Stakeholder Advisory Group participants. The value of these in-kind contributions is $10,000.
CERTIFICATION
I hereby certify that the foregoing Resolution was adopted at a duly convened meeting of the Elim IRA
Council at which a quorum was present, by a vote of __ in favor, __ opposed, __ abstained on this
_____th day of August, 2011.
_________________________________ ________________________________
Robert A Keith/President Wallace Amaktoolik Jr./Secretary
Resolution # __________
A RESOLUTION SUPPORTING THE CITY OF ELIM / UNIVERSITY OF ALASKA PROPOSAL “COMMUNITY
OF ELIM GEOTHERMAL RESOURCE ASSESSMENT” TO THE ALASKA RENEWABLE ENERGY GRANT FUND
ROUND V, AND PERMITTING RESEARCHERS TO ENTER UPON NATIVE CORPORATION LANDS FOR THE
PURPOSES OF THIS PROJECT
WHEREAS, The Elim Native Corporation (ENC) is a 19b ANCSA corporation with 350,000 acres of surface
and subsurface ownership; and
WHEREAS, multiple geothermal anomalies, in the form of hot springs, are known to exist on Elim Native
Corporation land; and
WHEREAS, Elim Native Corporation has the right to conduct scientific research on the hot springs and
use the results of such research without compensation to the U.S. ANCSA amended May 2, 2000 Sec 19(c)(5)(E);
and
WHEREAS, the Elim “Local Economic Development Plan updated in 2009 identifies geothermal as the
number one economic development priority; and
WHEREAS, a geothermal reconnaissance and feasibility assessment leading to a better understanding
of the benefits and costs of geothermal options available, is the first step toward attaining that priority;
and
WHEREAS, The Elim Native Corporation board of directors consists of 7 board members to oversee the
corporation; and
THEREFORE BE IT RESOLVED, The Elim Native Corporation board supports the City of Elim / University of
Alaska proposal to the Alaska Renewable Energy Grant Fund round V “Community of Elim Geothermal
Resource Assessment;” and
BE IT FURTHER RESOLVED THAT, Elim Native Corporation will work with the University of Alaska
to create a land use agreement that will permit researchers to access the areas of interest for the
duration of this project.
BE IT FURTHER RESOLVED THAT, Elim Native Corporation will provide local support to the project
including attending four Stakeholder Advisory Group meetings (2 by phone, 2 in Elim), providing
additional information on the location of potential geothermal anomalies, and assisting with the access
of remote sites.
CERTIFICATION
I hereby certify that the foregoing Resolution was adopted at a duly convened meeting of the Elim
Native Corporation Board at which a quorum was present, by a vote of __ in favor, __ opposed,
__abstained this ______th day of August, 2011.
______________________________ ____________________________
Robert A. Keith / President Darla Jemewouk / Secretary
NOTE: THIS RESOLUTION IS NOT OFFICIAL UNTIL SIGNED. IN ACCORDANCE WITH FREQUENTLY ASKED
QUESTIONS FROM PRIOR RENEWABLE ENERGY GRANT FUND ROUNDS, THE ALASKA ENERGY
AUTHORITY WILL BE PROVIDED WITH A SIGNED COPY IN A TIMELY MANNER.