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HomeMy WebLinkAboutFalse Pass Tidal RE Rd V App False Pass Tidal Energy Study Prepared by: City of False Pass Electric Utility P.O. Box 50 False Pass, AK. 99583 For: Renewable Energy Fund Round V Grant Application Contact: Ernie Weiss 907-274-7555 Renewable Energy Fund Round 5 Grant Application AEA 12-001 Application Page 1 of 18 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 18 7/1//2011 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of False Pass Electric Utility Type of Entity: Local government owned utility Fiscal Year End June 30 Tax ID # 92-0135411 Tax Status: For-profit or X non-profit ( check one) Mailing Address P.O. Box 50 False Pass, AK 99583 Physical Address 100 Main Street False Pass, AK 99583 Telephone 907-548-2319 Fax 907-548-2214 Email cityoffalsepass@ak.net 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Ernie Weiss Title Community Development Coordinator Aleutians East Borough Mailing Address 3380 C Street, Suite 205 Anchorage, AK 99503 Telephone 907-274-7555 Fax 907-276-7569 Email eweiss@aeboro.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or X A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 3 of 18 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) Type in your answer here and follow same format for rest of the application. False Pass Tidal Energy Study 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project. Location – latitude and longitude or street address or community / communities served: False Pass, Alaska, is located on the eastern shore of Unimak Island, of the eastern Aleutian Islands. The approximate coordinates are 54.853940° North Latitude and -163.408830° West Longitude (Sec. 34, T061S, R094W, Seward Meridian.). The City of False Pass is located on an ocean pass known as Isanotski Strait, between the Bering Sea and the North Pacific Ocean, 646 air miles southwest from Anchorage, Alaska. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources X 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. False Pass is currently dependent on diesel fuel for all of its electrical generation and heat production. This project will perform a Reconnaissance and Feasibility study to determine if tidal energy can be economically harnessed to provide electrical and perhaps heating loads to the community. The Reconnaissance phase of the project will include gathering existing energy usage data, including leveraging existing AEA funded efforts to assess the viability of tidal energy power at False Pass, preliminary geophysical data on ocean current velocities, and conducting modeling efforts to determine if a feasibility study is warranted. The feasibility phase of the project will involve geophysical data collection including more rigorous current velocity and bathymetric data collection to locate a viable deployment area. This data will be utilized to initiate consultations with permitting agencies and to perform an economic analysis of a conceptually designed project utilizing one or more of Ocean Renewable Power Company‟s (ORPC‟s) TidGen Power Systems to determine if a tidal energy project is economically, environmentally and technologically feasible at False Pass. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 4 of 18 7/1//2011 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) This project will reduce fuel and the overall energy costs to the False Pass community. False Pass currently produces all their electricity from diesel generators and heating from burning fossil fuels. Little biomass is currently available to offset home heating and hydro in the local streams and solar energy do not seem practical in False Pass, but the tidal energy resource may prove to be good. Based on local mariner knowledge, False Pass has strong tidal movement and currents and the information from this study may support the local knowledge. The estimated annual electricity generation, based on the installation and use of a 150 kW Tidal Generation Power System and average 6 knot current velocity will be 420 mWh. This should be sufficient to supply a goal of 30% of the electrical and heating needs of the community. Other project benefits will include:  Reduced dependence on diesel fuel and the expense involved in its transportation and storage.  Save on current operation and maintenance costs by less time from using diesel generators  Contribute to the reduction of air pollution and affects on climate change. Communities that are partially powered by renewable energy technologies reap economic, social, and environmental benefits. ORPC‟s core philosophy is to empower locals with expertise and tools to manage their new energy system. Social benefits will be a direct result of sustainable, high-quality job creation, enhanced quality of life, and energy independence for the community. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The estimated Phase I Reconnaissance cost of this project is $139,700, Phase II Feasibility is $157,200. The project cost total is $296,900. Aleutians East Borough staff time will contribute in-kind to this project for project administration and management ($5,000). The City of False Pass will contribute in-kind use of equipment and marine facilities ($5,000). Aleutian Pribilof Island Community Development Association will contribute in-kind use of vessels, crew and marine infrastructure ($68,000) The total requested is $218,900. 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) Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 5 of 18 7/1//2011 2.7.1 Grant Funds Requested in this application. $218,900. 2.7.2 Other Funds to be provided (Project match) $78,000. 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $296,900. 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) $ Not available 2.7.5 Estimated Direct Financial Benefit (Savings) $ Not available 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.) $ Not available SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. The Aleutians East Borough uses a team approach in project management and development. AEB staff maintains routine communications with False Pass City staff in all aspects of community development and projects. This close contact and coordination will continue in the False Pass Tidal Energy Study. The False Pass City Council has authorized the AEB to provide overall project administration and management of this project. Aleutian East Borough Project Management staff includes:  Sharon Boyette, Administrator 907-274-7555, sboyette@aeboro.org  Ernie Weiss, Community Development Coordinator 907-274-7555, eweiss@aeboro.org  Roxann Newman, Finance Director. 907-497-2588, rnewman@aeboro.org Attached are their resumes. 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.) Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 6 of 18 7/1//2011 See Project Milestones table below for Project Schedule. 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.) Project Milestones Reimbursable Tasks Timeline Phase I. Reconnaissance  Project Scoping and Community Solicitation  Project Management  Establish monitoring needs for area as suggested by USFWS  Team will travel to community for site assessment and to visit the school to introduce the project to Staff/Students/Community and solicit participation 9/1/12 to 10/31/12  Resource Identification and Analysis  Project Management  Preliminary site visit  Contract for numerical circulation modeling  Field bathemetry data collection  Deploy Accoustic Doppler Current Profiler (ADCP) 9/1/12 to 12/1/12  Land use, permitting, and environmental analysis  Project Management  Determine site ownership issues, if any  Contact agencies for preliminary approval: SHPO, DOD, ADNR, FERC  Document, stakeholder (fishermen, industry) concerns with chosen location 9/1/12 to 12/1/12  Preliminary design analysis and cost  Project Management  Utilize Energy Resource Report to identify optimal turbines and configuration – type currently under consideration: ORPC 150kW TidGen system 12/1/12 to 11/30/13  Cost of energy and market analysis  Project Management  Assess cost of energy for current and predicted usage  Solicit input from APIA OPRC UAA APICDA 12/1/12 to 11/30/13  Simple economic analysis  Project Management  Compare current vs. predicted price of energy 12/1/12 to 11/30/13  Final report and recommendation  Project Management  Prepare Tidal Energy Resource Report and 12/1/12 to 12/31/13 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 7 of 18 7/1//2011 s Present to School /Community along with options for development. Solicit input from community and interest in training for tidal energy-diesel O&M Phase II. Feasibility  Project scoping and community solicitation  Project Management  Assess interest for advanced training in tidal energy-diesel O&M  Provide School information about vocational training opportunities in tidal energy-diesel O&M 9/1/12 to 10/30/12  Detailed energy resource analysis  Project Management  Evaluate existing diesel power plant, electrical distribution system, and geotechnical data  Evaluate condition and acceptability of existing controls and switchgear for compatibility with a tidal energy system 1/1/13 to 12/31/13  Identification of land and regulatory issues  Project Management  Address site ownership and regulatory issues, if any 9/1/12 to 11/1/12  Permitting and environmental analysis  Project Management  Contact USFWS, FERC, DOD, ADNR, and SHPO for approval of conceptual design  Assess and document any issues with wetlands or telecommunications, including mitigation efforts planned if necessary  Document community sentiment regarding tidal apparatus placement location 9/1/12 to 12/31/13  Detailed analysis of existing and future energy costs and markets  Project Management  Review historical power plant and electrical consumption data  Identify building candidates for tidal power produced building heat  Identify planned or proposed future growth load for community 9/1/13 to 12/31/13  Assessment of Alternatives  Project Management  Compare productivity of different tidal turbines and apparatus for local conditions.  Compare and contrast apparatus and kW output of systems with capacity and interest of community to operate and maintain  Provide community with clear picture of options available to them for tidal energy- diesel power production – solicit input into 9/1/13 to 12/31/13 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 8 of 18 7/1//2011 decision  Conceptual design analysis and cost estimate  Project Management  Include design of building heat produced from tidal energy in power tie-in design 9/1/13 to 12/31/13  Detailed economic and financial analysis  Project Management  Calculate rate for tidal energy power produced heat 9/1/13 to 12/31/13  Conceptual business and operations plans  Project Management  Business and Operations Plan developed for tidal energy-diesel power plant grid tie- in system with participation from community. Meet with utility board to discuss and formalize. 9/1/13 to 12/31/13  Final report and recommendation s  Project Management  Community Meeting to Present Plan and Announce Training Opportunities  Final Grant Report to AEA 11/1/13 to 3/1/14 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. The Aleutians East Borough (AEB) staff will be responsible for implementation and successful completion of the project. The AEB will confer routinely with the False Pass City staff while simultaneously working with qualified consultants, including Ocean Renewable Power Company, LLC (ORPC) to develop and complete the project. Monty Worthington (resume attached) is the contact at ORPC. Other project team members include Bruce Wright with APIA and Everette Anderson with APICDA, resumes attached. The AEB will follow its procurement and bid policies as far as selecting firms and purchasing equipment, supplies, and materials. Selection of consultant and contractors will be based on the type and amount of past tidal energy project experience of the firm as well as individual work experience, experience and familiarity in the AEB region, and project cost. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The AEB Community Development Coordinator will be the project liaison and contact person among all parties (City of False Pass staff, consultants, general contractors, vendors, and the AEA). The position will help coordinate all project team communications, meetings, and disseminate information on a routine basis. The coordinator will be responsible for all periodic Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 9 of 18 7/1//2011 progress reports and other information requests to the AEA. AEB will work closely with the selected contractors and keep the AEA informed of progress by regular e-mail updates as components of the project are completed. The contractor’s interim and final reports will be submitted promptly when completed. Close liaison will be maintained with the contractors throughout the project. Issues to be tracked include scope clarifications, progress relative to budget, schedule, data recovery, and health and safety. These will include the project matching funds. 3.6 Project Risk Discuss potential problems and how you would address them. There are potential problems in project logistics and construction in remote areas such as Aleutians East Borough communities. Adverse weather conditions can also cause project delays. Aleutians East Borough staff has much experience in setting up and managing community development projects in AEB communities. Similarly, local labor has much experience, savvy, and know-how to get the job done in adverse conditions such as poor weather. Good team planning and reliance on local knowledge about community conditions help reduce the risk in development projects in remote areas. Marine mammals, waterfowl, and are present in the waterway so environmental studies will be critical. Underwater video monitoring will help determine a safe placement of the ORPC TidGen equipment. While current reports of ORPC‟s technology deployment and operation in Maine suggest that the turbines have no negative effects on fish, marine mammals, or other marine species, studies occur at each unique site to verify use by fish and other wildlife, and to assess any potential site- specific effects that would need to be monitored for or mitigated. We will consult with agencies to scope proper studies and identify areas of environmental concern. 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. This Project proposes to study the feasibility of a tidal energy project that would supply over 30% Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 10 of 18 7/1//2011 of the energy load of the community of False Pass through tidally generated electricity offsetting electrical loads. While no data has been collected on the ocean or tidal current resource at False Pass, anecdotal evidence from vessel captains who transit the area suggest it has some of the strongest currents anywhere, from 6 to 9 knots, in the Aleutian Islands. ORPC tests have proved that their devices in a 6 knot current can generate 3000kWh annually per installed kW of ORPC power systems. In a tidal current peaking at 6 knots, a TidGen device with a rated capacity of 150kW would put out 36,960 kWh monthly (450,000 kWh/yr). This feasibility study will determine what configuration of power system and number of devices will be needed to supply a reasonable amount of power to the community. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The City of False Pass owns and operates the False Pass Electrical Utility. The electric utility serves 21 residential, 11 commercial, one state facility, and nine community facilities customers. There are three John Deere diesel generators used for power generation. Generato r #1 has a rated capacity of 90 kW, but is currently not operational. Generator #2 has a capacity of 125kW, and Generator #3 has a capacity 150 kW. The peak load is 75 kW with an average load of 49kW. The community has used an average of 47,000 gallons per year of diesel #2 for electrical generation for the last two years. The utility‟s power distribution system is all underground 3- phase wire operating at 12,470 volts grounded Y. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. The False Pass Power Plant produces electrical energy by burning diesel fuel in engine-driven generators. This satisfies a community power consumption of approximately 384,699 kWh per year. This consumption does not include power that is used to operate the power plant, or power lost in distribution. By integrating tidal energy power into the existing system, our goal is to generate the same amount of energy output, using substantially less fuel than is currently being used. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. False Pass is located on the eastern shore of Unimak Island on a strait connecting the Pacific Gulf of Alaska to the Bering Sea. It is 646 air miles southwest of Anchorage and accessible only by air and barge transportation. The community experiences long and cold winter nights, and severe winter storms can be continuous. Existing power consumption is approximately 384,699 kWh per year. Reliable power service is Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 11 of 18 7/1//2011 essential for airport lights (especially in winter), the health clinic, school, government, tribal, and corporation buildings and facilities, harbor utilities, the Bering Pacific Seafood Plant, commercial enterprises, and residences. Tidal energy power will ultimately help stabilize or even lower monthly electricity costs which keep increasing due to the reliance of fuel for power generation. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system:  A description of renewable energy technology specific to project location  Optimum installed capacity  Anticipated capacity factor  Anticipated annual generation  Anticipated barriers  Basic integration concept  Delivery methods ORPC technology consists of a family of modular power systems. The core technology component and “engine” for all of ORPC‟s power systems is the Turbine Generator Unit (TGU). The TGU uses proprietary advanced design cross flow turbines to power an underwater permanent magnet generator mounted at its center on a single driveshaft. It is constructed primarily of composite materials that will not corrode, and has a gearless, direct-drive design that requires no lubricants and so does not contaminate the surrounding water. The TGU produces zero emissions, including greenhouse gases. ORPC‟s TidGen Power System, consists of one or more TidGen devices connected to an on-shore substation using underwater power and control cables. This system is designed for tidal energy applications in water depths from 60 to 150 feet. In a tidal current peaking at 6 knots, a TidGen device with a rated capacity of 150kW would put out 36,960 kWh monthly (450,000 kWh/yr). The power from a tidal project would be integrated into the City of False Pass electric grid. 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The key land owners in the area, the Isanotski Corporation, are supportive of the project, and the study will determine what the land issues are. The City also owns land that could be used for a grid tie-in substation or other project purpose. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 12 of 18 7/1//2011 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 This Project will identify federal and state licensing and permitting requirements for a turbine installation at the site. The only permits or licenses that would be required to complete the feasibility study itself would be submerged land use permits from the Alaska Department of Natural Resources (ADNR) for the deployment of bottom mounted scientific equipment, particularly the ADCP. ORPC has worked with ADNR in the past to successfully procure these permits, and there is no anticipated difficulty in doing the same for this Project. At the federal level, tidal energy projects are under the jurisdiction of the Federal Energy Regulatory Commission (FERC). To facilitate getting devices in the water, FERC has implemented an expedited hydrokinetic permitting system through its pilot license program as an alternative to the traditional full long-term hydropower licensing process. This pilot project process is intended to give projects that are small scale and short term an expedited licensing process, provided they are intensively monitored for environmental effects and able to be shut down on short notice if unacceptable environmental impacts that cannot be mitigated are encountered. We will determine, through this Project, whether to license the project through the pilot or the traditional hydropower process. ORPC‟s work towards installing a TidGen Power System in Cook Inlet at their Fire Island and East Foreland FERC permitted sites have identified the permits required by the State of Alaska and other federal agencies. These include an Alaska Fish & Game Fish Habitat Permit, USACE permits, USGC waterways assessment, a review by the Alaska Coastal Management Program (ACMP) and Alaska Department of Natural Resources Submerged Land Use and Water Rights permits. ORPC will continue relationships with appropriate agency personnel as the permitting pathway for the larger project is defined through this 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 A tidal energy project at False Pass would offer emission-free power that will both decrease the use of fuel oil and provide a flat-priced alternative as fossil fuel prices continue to rise. A single ORPC TidGen device is rated to produce 150kW in a 6-knot current (anecdotal evidence suggest Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 13 of 18 7/1//2011 currents at False Pass will be at least this; the resource assessment will verify this) would produce enough power to save 37,000 gallons of fuel over the course of a year. This would amount to offsetting the production of 822,000 pounds of CO2 annually. By offsetting this diesel fuel usage alone, significant environmental risk associated with the threat of fuels spills in the transportation, storage, and use of the diesel fuel will also be mitigated. Furthermore, as an Alaskan community dependent on fishing as a resource, the reduction in CO2 will mitigate both climate change and ocean acidification, which both threaten to negatively affect the marine environment, jeopardizing fish stocks and compromising the commercial and subsistence livelihood of the community. This Project allows the community of False Pass to proactively address these risks to the environment. A goal of this study is to identify any environmental issues that would need to be addressed before installing a turbine. The appropriate environmental studies and analyses must be completed to provide a basis for operating that minimizes the chance of potential impacts on the marine environment. While current reports of ORPC‟s technology deployment and operation in Maine suggest that the turbines have no negative effects on fish, marine mammals, or other marine species, studies occur at each unique site to verify use by fish and other wildlife, and to assess any potential site-specific effects that would need to be monitored for or mitigated. We will consult with agencies to scope proper studies and identify areas of environmental concern. 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 The estimated Phase I Reconnaissance cost of this project is $139,700, Phase II Feasibility is $157,200. The Reconnaissance and Feasibility cost total is $296,900. Aleutians East Borough staff time will contribute in-kind to this project for project administration and management ($5,000). The City of False Pass will contribute in-kind use of equipment and marine facilities ($5,000). Aleutian Pribilof Island Community Development Association will contribute in-kind use of vessels, crew and marine infrastructure ($68,000) The total requested is $218,900. According to ORPC a 150kW TidGen system installed with startup costs and video monitoring system totals $1,814,439. According to ORPC, estimated Operating and Maintenance costs would be $35,750 annually. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 14 of 18 7/1//2011 the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) The reconnaissance and feasibility study will determine more fully how O & M costs will be paid. 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 Tidal Energy Study will identify power/purchase sale information accurately. Customers of potential tidal energy power will be members of the community, who are currently connected to the False Pass power distribution system, and potentially Bering Pacific Seafoods processing plant. The study will accurately determine the rate of return from a tidal generation system installation 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. False Pass power generation information quoted from the City of False Pass and from the AEB 2010 Renewable Energy Resource Assessment for the Communities of Cold Bay, False Pass and Nelson Lagoon SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following:  Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project  Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate)  Potential additional annual incentives (i.e. tax credits)  Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available)  Discuss the non-economic public benefits to Alaskans over the lifetime of the project The City of False Pass operates the community's power utility and serves 21 residential, 11 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 15 of 18 7/1//2011 commercial, 1 Federal/State facility, and 9 community facilities customers. Residents pay between 28 and 53 cents per kWh for electricity, depending on whether or not they receive Power Cost Equalization payments from the State of Alaska. According to the AEB 2010 Renewable Energy Resource Assessment, diesel fuel use for the community during 2007 and 2008 amounted to an average of 47,000 gallons/year for electricity generation. Using the current price of $3.98 and the average annual amount of fuel, electricity costs the City of False Pass $187,060/yr. The Utility manager reports that the next fuel purchase price from PPSF is expected to be $4.20. The average community electricity demand is 368,868 kWh annually. In a tidal current peaking at 6 knots, a TidGen device with a rated capacity of 150kW would put out 450,000 kWh annually. It is clear that the demands of the community can be met and even surpassed with this renewable resource technology. The current False Pass generation system does experience losses. According to the 2010 AEB Renewable Energy Resource Assessment, the 2008 gross electricity generation was 175,851 kWh more than what was actually used by consumers, due to distribution losses that were higher than expected. This feasibility study will report on ways to increase efficiency to avoid such losses, and an added benefit of a tidal project will be an increase in overall system efficiency. 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 In order to adequately assess the economic viability of the project, partners will develop a preliminary budget for the installation and operation of the tidal energy project, and compare that to a “no-action” scenario where the energy for False Pass continues to be provided by diesel power. A preliminary budget estimate for the project (from permitting and design through construction and operation) will be developed with the input of the partners and budget estimates for their portions of the project. Based on these budget estimates and O&M costs derived from ORPC operations in Maine (adjusted for the cost of operation in the remote False Pass setting), a projected cost of power will be developed. Anticipated economic impacts to the local False Pass economy through job creation in O&M operations and associated economic growth will also be considered in the holistic view of the economic viability of the project. This will be compared to predictions of future power usage and costs of diesel fuel that would otherwise be spent over the 25-year lifetime of the project. 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 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 16 of 18 7/1//2011 meet the requirements of previous grants. The Aleutians East Borough was awarded a $25,000 grant from the Alaska Energy Authority on July 27, 2009 to perform a renewable energy resource feasibility study for the communities of Cold Bay, False Pass, and Nelson Lagoon (the AEB contributed $5,000 cash and $10,000 in-kind to the project). The study project was completed on May 18, 2010 and submitted to the AEA on June 2, 2010. The study contains an analysis of existing energy power systems, potential renewable energy resources, and recommendations for renewable energy projects in the three communities. The study provided a basis for information contained in this grant. The City of False Pass and the Aleutians East Borough are currently working with Aleutian Pribilof Island Association (APIA), Aleutian Pribilof Island Community Development Association (APICDA) and ORPC to follow-up on the project assertion contained in the completed Renewable Energy Feasibility Study, that „tidal energy may be a potentially viable energy resource in False Pass‟. ORPC in at the forefront of tidal energy power production, and the company is very interested in the potential at Isanotski Strait. SECTION 8– LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. The False Pass City Council passed a resolution in a public meeting in support of the False Pass Electric Utility‟s Renewable Energy Fund Round IV Grant, entitled, “False Pass Tidal Energy Reconnaissance and Feasibility Study”. The Aleutians East Borough Assembly is planning to pass a similar resolution (Aleutians East Borough Resolution 12–1) at the August 31, 2011 public meeting in Sand Point Alaska. The resolutions are attached, and the unsigned AEB resolution will be replaced with a signed copy when available, with the permission of the AEA. Aleutian Pribilof Island Community Development Association (APICDA),sole owner of the processor in False Pass, Bering Pacific Seafoods, has submitted a letter of support, signed by CEO Larry Cotter. APICDA also pledges significant in-kind match in support of the study. The local False Pass Tribal Council and the Isanotski Corporation are both on record in support of developing a Tidal Energy project for the City. Letters of support are included as attachments. Southwest Alaska Municipal Conference (SWAMC) Executive Director Andy Varner has also submitted a letter, attached, in support of the study, as a project consistent with the goals of the organization. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 17 of 18 7/1//2011 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 Provide a narrative summary regarding funding sources and your financial commitment to the project. The expected cost of the reconnaissance and feasibility study is $296,900. The Grant Budget Form is attached. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 18 of 18 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 w ith 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 Tom Hoblet Signature Title Mayor, City of False Pass Date August 26, 2011