HomeMy WebLinkAboutPackers Creek Grant App5Final
Renewable Energy Fund Round 5
Grant Application
AEA 12-001 Application Page 1 of 41 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.
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Chignik Lagoon Village Council
Type of Entity: Fiscal Year End September 30, 2011
Tax ID # 920106417 Tax Status: For-profit or X non-profit ( check
one)
Mailing Address
PO Box 9
Physical Address
427 Airport Rd
Telephone
(907) 840-2281
Fax
(907) 840-2217
Email
clagoon@gci.net
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Michelle L. Anderson
Title
Village Grant Writer
Mailing Address
PO box 9
Telephone
(907) 840-2304
Fax
(907) 840-2282
Email
michelleleah@hughes.net
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
X A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
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
or
No
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
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
or
No
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.
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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)
Packer’s Creek Hydroelectric Project
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project.
The project would be located on the Packers Creek, located directly behind the Village of
Chignik Lagoon. The project is located within sections 5 and 8 of township 45 south, range 59
west, of the Seward Meridian.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels
X Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
l\Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance Design and Permitting
Feasibility X Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The proposed project is a high head run-of-river hydroelectric power plant on Packers Creek in
Chignik Lagoon with an installed capacity of 177 kW. Project will include a 9-foot tall concrete
dam, 3,260 foot long 18- inch and 16-inch diameter penstock and access trail; 400 square foot
power house; 1,550 foot long access road with a bridge across Packers Creek to the powerhouse;
and a 1,750 foot long overhead power line extension to the existing distribution system and
3,000 foot long control connection to the existing diesel power plant.
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2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
The Chignik Lagoon Village generators use approximately 45,000 gallons of diesel fuel per year.
The project will meet an estimated 89% of Chignik Lagoon’s existing electrical demand, and
offset use of 43,425 gallons of diesel generation fuel. (Data from 09-2010 PCE) An additional
amount of interruptible electric space heat will be available to replace diesel power plant waste
heat supply to the school. Additional Public Benefits would be fewer pollutants discharged into
the air, less risk for environmental liability, lower cost electricity allowing for potential future
economic growth.
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 costs will come to $2,516,496. Chignik Lagoon Village Council requests
$1,993,496 in grant funds for construction of the project. Local match will consist of other
grants, equipment usage, labor, housing and other in-kind support totaling $123,000. Lake and
Peninsula Borough will be providing a $400,000 match in support of our project (see attachment
D). Total match will be $523,000.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application. $1,993,496
2.7.2 Other Funds to be provided (Project match) $523,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $2,516,496
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)
$2,516,496
2.7.5 Estimated Direct Financial Benefit (Savings) $217,125 savings per year
of displaced diesel
generation fuel with present
worth benefit of $3,197,062
over 50 year life of the
project.
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.)
553,900 kWh of excess
hydro power will be
available for space heat to
the school, which is
currently heated by waste
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heat off the diesel
generators, and additional
buildings. Estimated to
offset 2,000 gallons of
heating oil use or an
additional $10,000 per year
saving. (based on current
rate of $5/gallon)
SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a
resume and references for the manager(s). If the applicant does not have a project manager
indicate how you intend to solicit project management support. If the applicant expects project
management assistance from AEA or another government entity, state that in this section.
Project management will be selected by the Village Council by holding a special session to
discuss project duties and available district wide community support and resources, such as Lake
& Peninsula Borough, AEA and Alaska Native Tribal Health Consortium (ANTHC). The
Chignik Lagoon Village Council will advertise for, and hire a construction manager to oversee
contractor construction. The design team of Polarconsult will provide project inspection at key
intervals. Additional project management support may be solicited from AEA and Lake and
Peninsula Borough to assist in selection of construction manager.
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.)
CONSTRUCTION
Hire Project Manager August 2012
Construct access road and bridge October 2012
Construct access trail November 2012
Contract bidding and award Sept-Dec 2012
Contractor material purchases and mobilize Jan-May 2013
Construct power line May 2013
Construct powerhouse May 2013
Construct intake and penstock June-July 2013
Install switchgear, controls and turbine August 2013
Project start-up Sept. 2013
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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CONSTRUCTION
Secure project manager, completion of bid documents
Construct access road and bridge
Contractor selection and award
Material supply and mobilization
Construct transmission line
Construct powerhouse
Construct intake
Construct penstock
Install turbine/switchgear and controls
Project startup/demobilization
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 Chignik Lagoon Village Council will advertise for a construction manager to oversee the
construction of the new hydroelectric plant. Submitted resumes will be reviewed and phone
interviews conducted of potential candidates. Most qualified person will be hired.
Chignik Lagoon Village Council will advertise for bids to construct the new plant. Bids will be
received and reviewed to determine if complete and contractor has required experience to
complete the work. Construction contract will be awarded to the best qualified, lowest cost
contractor. Contractor agreements will include the stipulation of use of local equipment and
local hire whenever possible.
Project manager hired for the project will provide onsite inspection of contractor construction
and work with the village grant writer to submit project status and grant reports.
Polarconsult will supply interim construction inspection services as required. See Attachment A
for Mike Dahl, Polarconsult’s project manager resume.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The project manager hired for the project will prepare monthly project status reports. Reports
will be submitted to the Authority and village council.
3.6 Project Risk
Discuss potential problems and how you would address them.
This project utilizes proven technology and construction methods. Primary risk will be
unanticipated increases in material costs, or unforeseen ground conditions which may cause cost
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overruns. Contingencies have been included in the cost estimate for these items. Potential
problems with the construction will be reviewed by the project manager and forwarded to
Polarconsult for recommendations if required.
Any changed conditions would be identified in a request for information from the contractor who
would be notified in writing of the corrective action to be taken with a negotiated contract
modification.
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.
Past studies (USACE, 1982 and Polarconsult, 1995) considered run-of-river hydroelectric
projects of 150 to 200 kW installed capacity. The current project design recommends a 177 kW
installation. This configuration would have an 89% capacity factor, providing 521,100 kWh of
energy in an average water year of the 540,000 kWh demand. Plant would displace 43,425
gallons of diesel generation annually.
The plant has an additional 553,900 kWh of excess energy available to offset existing oil fire
space heat or hot water heat. This excess energy would be utilized by installation of load bank
and electric heating coils or heaters into the school to displace existing waste heat usage and into
other public buildings.
At this time there are no other viable alternatives that could produce comparable results.
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.
Chignik Lagoon Village generates electricity with 3 diesel fired generators and operates a 3 phase
overhead 7.2/12.47 kV distribution system to serve the community. The existing system has an
efficiency of about 11.3 kWh per gallon of fuel based on FY 2010 PCE data.
#1 generator and engine is about 16 years old. #2 generator is about 10 years old with a 5 year old
engine. #3 generator is about 10 years old with a 16 year old engine.
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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.
Chignik Lagoon relies exclusively on diesel fuel for their electric generation and heating needs.
This project would allow the existing diesel power plant to be shut down for much of the year.
During cold or dry periods, the diesels would run in parallel with or instead of the hydro. The
existing diesel plant would remain unchanged, and would provide a backup for periods when the
hydro is unavailable. O&M costs for the existing diesel plant will be significantly reduced, and
extend their useful life. Reduced fuel usage for power generation will result in reduced potential
hazards from hydrocarbon storage and transport. An electric hot water heater will be installed in
the diesel power plant or school and plumbed into the existing waste heat loop to continue to
supply heat to the school.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Electrical power is supplied to commercial businesses, residences, city buildings, streetlights,
docks, and the school. This project will have a profound impact on the community by lowering
energy costs and make the use of electrical space heating feasible. Lower and more stable energy
prices will tend to increase electrical demand in the community. Commercial enterprises in
Chignik Lagoon particularly suffer under the current energy costs as they are not eligible for PCE
subsidized rates.
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
Run of river hydroelectric project with a concrete dam, penstock and pelton wheel turbine.
Installed capacity of 177 kW to carry entire community electric load and supply
interruptible electric space heat.
Capacity factor: 89%
Annual generation: 521,100 kWh
Anticipated barriers: None
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Integration concept: Switchgear will allow hydro to run solo or in parallel with existing
diesel plants new automated controls. Load governor utilized to direct excess hydro
energy to interruptible electric space heating loads at the school and community buildings.
Delivery Method: New power line to tie hydro powerhouse into existing distribution 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 project will be developed on land owned by the Chignik Lagoon Native Corporation. The
power line and access road to the project will be within a combination of existing public road
right-of-ways and new right-of-ways on Chignik Lagoon Native Corporation Lands. Draft
property descriptions were supplied to the Native Corporation and they have supplied a resolution
providing easements to the project. (See Attachment D). Native Corporation attorney will
prepare quit-claims for the final right-of-way, easements and lease areas once the grant agreement
is finalized.
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
Following permits have been received:
FERC finding of non-jurisdiction, Docket No. 15-000
Corps of Engineers wetlands permit dated February 23, 2011
ADF&G Habitat permit is available from ADF&G. Brad Dunkers 267-2541
The following permit is being processed (needed ADF&G permit completed to proceed):
DNR water rights
The following permit is being processed. L&PB requested application be held until all State and
Federal Permits were received. Attached is their letter of support for the project and grant match.
Lake and Peninsula Borough Development Permit
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
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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
There are no significant environmental impacts associated with this project.
Packer’s creek is not listed as an anadromous fish stream, and the majority of the bypass reach of
Packers Creek is upstream of a 40-foot high waterfall.
The project does not cross any wetlands.
There are no known Archeological sites in the project footprint.
The landowners are in full support of the project.
There are no telecommunications or airport impacts.
The project footprint is being limited and all cut and fill slopes to be revegetated with native
species to reduce visual impacts.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
Total project cost through construction: $2,516,496
Grant funding requested (construction): $1,993,496
Local match, in-kind services $523,000 (includes match from LPB)
Estimated capital cost of the project: $2,516,496
Estimated remaining development cost (construction): $2,516,496
(Cost estimates based on 2011 Polarconsult Design)
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.
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(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.)
Total annual O&M costs for the project are estimated as $10,422. O&M costs will be paid
through the utility's electric rates.
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 electric utility will own the project. Power will be sold to utility customers. With the
requested grant, electric rates in the community would decrease from the existing rates of $.75 per
kWh to about $0.20 to $0.22 per kWh. This reduced rate would cover all utility expenses, such as
operation, maintenance, repair, general, and administrative costs. These rates do not consider
PCE subsidies to residential / community accounts.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
See attachment C for Cost Worksheet.
Sources of data: Chignik Lagoon Power Utility records, 1982 US Army Corps of Engineers
Feasibility Report, 1995 Polarconsult Feasibility report, and 2011 Project Design, Polarconsult
Alaska.
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
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Annual fuel displacement / Lifetime (50-year) fuel displacement:
- 43,425 gallons for electrical generation (2,171,250 gallons over life)
- 10,000 gallons for space/water heating (500,000 gallons over life)
Annual Revenue/Savings (using current $5.00 per gallon fuel cost in Chignik Lagoon)
- $217,125 avoided fuel (electricity)
- $ 27,695 avoided fuel (heating)
Chignik Lagoon may pursue sales of green tags for energy from the project and other revenue
streams that may be available to help offset future utility costs.
Non-economic benefits of the project to Alaskans include:
- Stable and reasonable energy costs will make Chignik Lagoon a more desirable place to live,
and will help to attract local economic activity such as tourism, fishing, etc. The hydro will
bolster the sustainability of the community for the long term.
Commercial enterprises in Chignik Lagoon will benefit from lower energy costs. Lower energy
costs will make local businesses such as stores and lodges more competitive and will increase
Chignik Lagoon's sustainability and long term viability as a community. Affordable energy, and
the local economic activity it will encourage and support, will help considerably in the long term
efforts to help the community thrive.
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
The hydro would be operated by the existing certificated electric utility.
Maintenance and operations of the hydro would be paid through electricity rates.
No operational issues are expected.
Operating costs would include continuing (decreased) O&M costs for the diesel plant, and costs to
operate and maintain the hydro. Estimated $10,422 annually for hydro O&M and $11,600
annually for hydro repair and replacement (R&R). The R&R budget is an annualized value over
the 50-year life of the project. Annual R&R costs would be lower in the early years of the project
and higher in the later years of the project.
The Chignik Lagoon Power Utility will report the savings and benefits of this project to AEA for 2
years through PCE reports.
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.
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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.
Chignik Lagoon Power Utility paid for a feasibility study in 1982 and 1995 to evaluate the
project. Design and permitting work for the hydro is nearly complete with a Denali Commission
grant managed by AEA. This phase of the project has accomplished the following;
1. Lidar survey of the community and project area completed.
2. Final construction drawings and specifications for the project are complete.
3. Engineers construction cost estimate is complete.
4. Permits have been acquired for FERC and the Corps of Engineers and ADF&G Habitat.
5. Water rights permit pending from ADNR
6. Lake & Peninsula Borough Development Permit pending
The requested funds would be used to complete the construction of the project.
SECTION 8– LOCAL SUPORT
Discuss what local support or possible opposition there may be reg arding your project. Include
letters of support from the community that would benefit from this project.
The community of Chignik Lagoon has been supportive of this project since the US Army Corps
of Engineers study in 1982 showed its economic viability and still strongly supports this
hydroelectric project. Bristol Bay Area Health Corporation, Bristol Bay Native Association,
Bristol Bay Native Corporation, Alaska Native Tribal Health Consortium, Lake & Peninsula
Borough, and Lake & Peninsula School District are all in support of lowering energy costs for
Chignik Lagoon and adding to its viability for the future. (See Attachment D)
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
Investment to Date:
- Chignik Lagoon has expended in-kind services over the past 22 years to advance the project –
discussions with state/federal agencies, etc.
- $60,000 Community and grant funds for 1982 and 1995 studies
- $150,000 for 2010 project design, and permitting (Denali Commission Grant)
Requested Grant Funds
Total project cost through construction: $2,516,496
Grant funding requested (construction): $1,993,496
Local match, in-kind services: $ 523,000 (including LPB match)
(See Attachment E for Grant Budget)
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Attachment A: Resumes
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Attachment B: Permits
1. Federal Energy Regulatory Commission Permit
UNITED STATES OF AMERICA 133 FERC ¶ 62,152
FEDERAL ENERGY REGULATORY COMMISSION
Chignik Lagoon Power Utility Docket No. DI10-15-000
ORDER RULING ON DECLARATION OF INTENTION
AND FINDING LICENSING NOT REQUIRED
(Issued November 18, 2010)
1. On August 9, 2010, Chignik Lagoon Power Utility filed a Declaration of
Intention (DI) concerning the proposed Packers Creek Hydroelectric Project, which will
be located on Packers Creek, near the community of Chignik Lagoon, Lake and
Peninsula Borough, Alaska, affecting T. 45 S., R. 59 W., secs. 5 and 8. Seward
Meridian.
PROJECT DESCRIPTION
2. The proposed Packers Creek Hydroelectric Project will consist of: (1) a proposed
9-foot-tall by 63-foot-wide diversion structure, spanning Packers Creek, located
approximately at river mile 1.80; (2) a proposed 5,000-foot-long penstock; (3) a
powerhouse located at river mile 0.63, containing a 145-kW pelton wheel turbine,
synchronous generator, switchgear, controls, and related equipment; (4) a tailrace
returning flows into Packers Creek; (5) a proposed 1,100-foot-long transmission line;
and (6) appurtenant facilities.
PUBLIC NOTICE
3. Notice of the DI was published on August 26, 2010. Protests, comments, and/or
motions to intervene were to be filed by September 27, 2010. No protests, comments,
and/or motions to intervene have been received.
JURISDICTION
4. Pursuant to Section 23(b)(1) of the Federal Power Act (FPA), 16 U.S.C. §817(1),
a non-federal hydroelectric project must (unless it has a still-valid pre-1920 federal
permit) be licensed if it:
is located on a navigable water of the United States;
occupies lands of the United States;
utilizes surplus water or waterpower from a government dam; or
is located on a stream over which Congress has Commerce Clause jurisdiction, is
constructed or modified on or after August 26, 1935, and affects the interests of
interstate or foreign commerce.
20101118-3034 FERC PDF (Unofficial) 11/18/2010
Docket No. DI10-15-000 2
DISCUSSION
5. The proposed project will not occupy any public lands or reservations of the
United States and will not use surplus water or waterpower from a Federal government
dam. There is insufficient evidence to determine whether Packers Creek is a navigable
waterway at the site of or in the vicinity of the proposed project. The proposed project
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would be constructed after August 26, 1935, and would be located on a Commerce
Clause stream.1 However, the power generated would not affect interstate commerce
because it would not be connected to an interstate transmission grid. Therefore, the
project does not require licensing under Section 23(b)(1) of the FPA.
CONCLUSION
6. Consequently, Section 23(b)(1) of the FPA does not require licensing of the
proposed project. If evidence is found in the future, Section 23(b)(1) would require
licensing. Under Section 4(g) of the FPA, the project owner could then be required to
apply for a license.
The Director orders:
(A) Section 23(b)(1) of the Federal Power Act does not require licensing of the
proposed Packers Creek Hydroelectric Project. This order is issued without prejudice
to any future determination upon new or additional evidence that licensing is required.
(B) This order constitutes final agency action. Any party may file a request for
rehearing of this order within 30 days from the date of its issuance, as provided in
section 313(a) of the FPA, 16 U.S.C. § 825l (2006), and the Commission’s regulations
at 18 C.F.R. § 385.713 (2010). The filing of a request for rehearing does not operate as
a stay of the effective date of this order, or of any other date specified in this order. The
licensee’s failure to file a request for rehearing shall constitute acceptance of this order.
William Guey-Lee, Chief
Engineering and Jurisdiction Branch
Division of Hydropower Administration
and Compliance
1 For purposes of FPA section 23(b)(1), Commerce Clause streams are the headwaters
and tributaries of navigable waters of the United States. Packers Creek is tributary to
the Chignik Bay and the Pacific Ocean.
20101118-3034 FERC PDF (Unofficial) 11/18/2010
Document Content(s)
di10-15-
000.DOC.......................................................1-
2
20101118-3034 FERC PDF (Unofficial) 11/18/2010
2. Corps of Engineers Wetlands Permit
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3. ADF&G Habitat Permit
ADF&G Habitat permit is available from ADF&G. Brad Dunkers 267-2541
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Attachment C: Cost/Benefit Worksheet
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Attachment D: Local Support
Chignik Lagoon Native Corporation Resolution; Support and Land
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Bristol Bay Native Association Support Letter
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Alaska Rural Utility Collaborative Support Letter
Lake Peninsula Borough Support Letter
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Attachment E: Grant Budget
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Attachment F: Authorized Signers Form
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Attachment G: Governing Body Resolution