HomeMy WebLinkAboutReynolds Creek Transmission Line GrantApplication5 Final
August 23, 2011
Alaska Energy Authority
Attn: Butch White, Grants Administrator
AEA 12-001 Renewable Energy Grant Application
813 West Northern Lights Blvd
Anchorage, AK 99503
RE: Reynolds Creek Hydroelectric Transmission Line Grant Application
AEA 12-001 Renewable Energy Grant Application Round V
Dear AEA:
Enclosed in response to RFA AEA 12-001 Renewable Energy Grant Application
Round V program, is an application requesting funding for the Reynolds Creek
Hydroelectric Transmission Line. Enclosed with this letter are two hard copies and one
CD with the document in PDF format.
Enclosed as per the RFA,
o Grant Application Form
o Cost Worksheet (included in Section 10 – Appendices)
o Grant Budget (included in Section 10 – Appendices)
o Grant Budget Form Instructions
o Other pertinent information
If you have any questions, please call either Glen Martin (Resource Assessment &
Permits) 360-385-1733 x122, or Bob Grimm (President) 360-385-1733 x120.
Sincerely,
Glen D. Martin
Resource Assessment & Permits
Enc. (as stated)
Renewable Energy Fund Round 5
Grant Application
AEA 12-001 Application Page 1 of 17 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
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Alaska Power Company (APC)
Type of Entity: Utility Fiscal Year End: December 31
Tax ID # 92-0153693 Tax Status: For-profit or non-profit ( check one)
Mailing Address
P.O. Box 3222
Port Townsend, WA 98368
Physical Address
193 Otto Street
Port Townsend, WA 98368
Telephone
360-385-1733
Fax
360-385-7538
Email
glen.m@aptalaska.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Glen Martin
Title
Grant Writer and Permitting/Licensing Manager
Mailing Address
c/o Alaska Power Company, P.O. Box 3222, Port Townsend, WA 98368
Telephone
360-385-1733
Fax
360-385-7538
Email
glen.m@aptalaska.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)
X 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
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
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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)
Reynolds Creek Hydro Transmission Line
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 is on Prince of Wales Island, Alaska (POW). The purpose of this project is to connect a new
hydroelectric project (5.0-megawatt Reynolds Creek Hydroelectric Project) with the existing grid on the
island, which although presently has two hydroelectric projects is still needing diesel generation to meet
peak loads and new loads as the economic landscape continues to fluctuate and change on the island. The
transmission line will benefit the communities of Hydaburg, Hollis, Klawock, Craig, Thorne Bay, South
Thorne Bay, Kasaan, and soon both Coffman Cove and Naukati.
The overall 34kV power line route is approximately 12 miles long. Approximately 0.9-mile of the
westernmost section is an existing APC 2kV distribution line that will be overbuilt. The line will cross
Hetta Inlet via Jumbo Island. On Jumbo Island the transmission line will go southeast to Copper Harbor
where the powerhouse and switchyard will be located. The route will be able to primarily follow existing
logging roads.
Although $2,000,000 was received under the Round IV grant funding cycle, the total cost to install the
transmission line was listed as $3,000,000. Additional design work has determined that the total cost for
the transmission line will be $3,840,000.
Round IV Funding = $2,000,000 + $400,000 matching
Round V Request = $1,200,000 + $240,000 matching
Subtotal = $3,200,000 + $640,000 matching
Total Transmission Line Cost= $3,840,000
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels
Hydro, including run of river X Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance Design and Permitting
Feasibility X Construction and Commissioning
Conceptual Design
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The overall 34kV power line route is approximately 12 miles long. Approximately 0.9-mile of the
westernmost section is an existing APC 2kV distribution line that will be overbuilt. The line will cross
Hetta Inlet via Jumbo Island. The route primarily follows existing logging roads.
The power line will begin at a point along Hydaburg Road about 0.45 miles northeast of the town. It will
continue northeast along the existing logging road passing north of Deer Bay and intersecting Hetta Inlet
opposite Jumbo Island. This section is adjacent to private forested land with a small section of Muskeg
and is 7.0 miles long. The logging roads are mostly mild to moderate cut sections with a few rock cuts.
The first 0.9 miles of this section is an existing APC corridor adjacent to the road established for a 2kV
line.
The water crossing over Hetta Inlet will be accomplished with 3 multi-pole structures with one on each
side of the inlet and one at the pinnacle of Jumbo Island. Jumbo Island slopes steeply toward the water
on both sides and is heavily forested. A new corridor will need to be established. The structure on the
island will likely be set by helicopter. This crossing is 0.9 miles across.
The power line will continue in a new corridor for 0.3 mile to the east until it intersects an existing
logging road. Approximately 1500 feet of temporary or permanent access road spurs will need to be
constructed to access 2 line structures along this section.
The line route then turns south and follows existing logging roads 3.8 miles southeast to the
powerhouse/switchyard location near Copper Harbor. This section is adjacent to private, recently
harvested forest land with very steep and rocky terrain prone to slides. The logging road is primarily full
bench construction with several rock cut sections. There are danger trees (and boulders) above the
power line route on the eastern side slopes that may need to be removed/secured to protect the power
line.
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.)
Reynolds Creek will allow the loads within the interconnected system on POW to be met exclusively with
renewable hydroelectric power. The Project provides other operational benefits as well:
The facilities are lower in elevation than the Black Bear Lake and South Fork hydro projects and
will, therefore, not be as susceptible to freezing as the other two resources are.
Reynolds Creek will also allow better use of the storage reservoir at Black Bear Lake Hydro so
that water can be stored and used during drier months or provide for new peaking loads.
The 5.0-megawatt Reynolds Creek hydroelectric project is located approximately 10 miles east of
Hydaburg. The Project, through this transmission line grant application, will be interconnected into the
island grid and sold on a wholesale basis to APC, the certificated retail electric utility on the island.
Although APC owns and operates two other hydroelectric resources on the island (Black Bear Lake and
South Fork), power requirements cannot be fully met with these two resources. APC was also recently
awarded a grant to expand the interconnection system to Coffman Cove and Naukati, further increasing
the need for hydroelectric power.
A summary of the 2008 power supply for the interconnected grid and Coffman Cove and Naukati is
provided in the following table.
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Prince of Wales Island Sources of Power –2008
Energy Requirements (MWh) Generation
Existing Grid 26,313 Hydroelectric
Coffman Cove 885 Black Bear 15,101
Naukati 497 South Fork 6,558
Diesel 6,036
Total Requirements 27,695 Total Generation 27,695
From the Table above it is apparent that the load matches the current generation system, but relies upon
over 6 MWh of diesel generation annually. Current diesel fuel costs are $3.80/gallon for the grid. Fuel
offset by this project is approximately 429 gallons annually. The continued use of diesel means the
electric rates on the island are continuing to fluctuate with the price of diesel, placing economic pressure
on households and businesses. Until this grid can be 100% hydroelectric power the communities on the
island will continue to be impacted by rate fluctuations.
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 cost for the transmission line facilities will be $3,840,000.
Total additional funds needed to complete the transmission line is $1,440,000
Total additional grant funds being requested in AEA 12-001 Round V is $1,200,000
Total matching funds in AEA 12-001 Round V is $240,000
In a recent loan application for Reynolds Creek Hydroelectric Project, total costs for the project are as
follows:
Sources of Funds
Grants $2,000,000 – Round IV Grant Funding For Transmission Line (+20%
matching = $400,000)
Federal $1,340,000
State $4,000,000
Subtotal - Grants $5,340,000
Equity
To Date (Approximate) $4,000,000
Partial Equity Repayment* ($1,095,000)
Subtotal - Equity $2,905,000 24%
PPF Loan $9,500,000 76%
Total $17,745,000
* From loan proceeds.
Of the $9,500,000 requested in the loan above, $3,000,000 is for the transmission line (although now the
cost estimate is $840,000 higher after further analysis and difficulties encountered with the timeline,
which has increased costs). From a financial feasibility standpoint, grant funding is preferable to a loan.
The transmission line is one significant part of the Project still requiring funding and would be one of the
first and significant parts of the project to be constructed (construction has started with Round IV funds).
For this Round V grant application, because other hydro projects are on the island grid, we are
requesting $1,200,000 in additional funds to complete the transmission line.
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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. $1,200,000
2.7.2 Other Funds to be provided (Project match) $ 240,000 (20% matching)
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $1,440,000
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)
$3,840,000
2.7.5 Estimated Direct Financial Benefit (Savings) $
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.)
$
Renewable Energy Fund
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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.
Vern Neitzer, APC’s Chief Engineer, will be the Project Manager. Mr. Neitzer is located in Skagway,
Alaska, and has extensive experience in managing hydroelectric development, including feasibility,
construction and operation phases. A resume for Mr. Neitzer is included in Section 10 – Appendices.
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.)
Phase IV: Construction: July 2011 – October 2012
APC placed the order for transmission line materials in early 2011. APC has already started
construction of the transmission line with the $2,000,000 from Round IV funding.
Transmission Facilities Schedule
Hydaburg to Deer Bay 7/1/2011 – 10/31/2011
Jumbo Island Crossing 11/1/2011 – 2/28/2012
Jumbo Island to Copper Harbor 3/1/2012 – 10/1/2012
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.)
Key (i.e. critical path) milestones for the Project are:
Order materials for the transmission line by July 2011
Beginning of construction of the transmission line by July 2011
Completion of Hydaburg to Deer Bay by Fall 2011
Completion of Jumbo Island crossing by February 2012
Completion of transmission line installation by October 2012
The schedule described in 3.2 above is consistent with these milestones. It should be noted that the
schedule assumes weather will be cooperative throughout the winter, however if unusually harsh weather
conditions occur, the entire schedule could slip, however, if mild conditions persist then more work will
be accomplished
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.
Key APC personnel involved in the project development and their roles will be:
Vern Neitzer, Project Manager/Senior Engineer
Greg Mickelson, Construction Manager
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Bob Berreth, Electrical Design
Ben Beste, Mechanical Design
Larry Coupe, Civil Design
Glen Martin, Resource Assessment and Permits
Phase IV: Construction
Construction will be by local contractors and APC staff.
Resumes for the above-mentioned individuals are included in Section 10 – Appendices.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
During Phase IV, APC proposes to provide quarterly reports to AEA regarding the status of the work.
APC has provided similar reports to AEA and other grant funding agencies in the past years on other
projects, and has established the necessary procedures for producing the report expeditiously. At the
completion of Phase IV, APC will provide AEA with a copy of the final design drawings, specifications,
and a report on how construction went, lessons learned, and how things would be done differently, if
needed.
3.6 Project Risk
Discuss potential problems and how you would address them.
Site Control – APC has a joint venture with Haida Corporation as Haida Energy. Haida Corporation
owns some of the land. Other land is owned by Sealaska Corporation and a land lease is currently being
negotiated with them. A map showing land ownership is provided in Section 10 – Appendices.
Power Sales Agreement – Haida Energy (joint venture) will be a regulated utility selling wholesale power
to APC.
Inclement Weather – Working conditions in the Project area can be very harsh during the winter. The
proposed schedule however has assumed that winter weather will not be overly harsh for the December-
March period. If unusually harsh winter weather extends that period, the entire schedule could slip.
Should that appear likely, AP&T and its contractor(s) will review various options, including double-shift
work during the long summer days or limited outside work during the winter such as boring holes for the
poles.
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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.
Proposed Energy Resource: APC will develop the 5 MW Reynolds Creek Hydro Transmission Line to get
renewable energy out to the power grid on POW to offset the use of diesel generation. At present this
would offset up to 6 MWh of diesel annually. Loads are expected to grow due to some industries being
proposed for POW, such as mining.
During Phase IV: Construction, APC will construct the transmission line either using its own linemen or
using a contractor. This project has been licensed by the Federal Energy Regulatory Commission
(FERC). The full potential of this renewable resource is being developed at 5 MW.
Alternatives: There are no real alternatives for another storage project on POW. This project, already
licensed, is the logical next step to providing energy independence and security to the communities on the
island. Although other forms of renewable energy may one day become a part of the energy mix on the
island, those technologies, i.e. wind, geothermal, are not yet advanced enough to warrant an investment of
this nature. To our knowledge none of these other technologies are currently being actively pursued,
making this project the only viable alternative as opposed to the continued use of diesel generation.
Pros: Compared to diesel generation, the hydro project the transmission line will support will have the
following advantages:
• less expensive to operate than diesel (lower O&M);
• will reduce or eliminate APC’s need to purchase fuel for the island;
• reduced or eliminated air emissions;
• fewer hazardous substances;
• no particulate matter emissions;
• can come on-line after a power outage almost immediately, but diesel can’t;
• lower and more stable electric rates for customers (current diesel rate based on $2.86/gal)
Cons: As with all hydroelectric projects, the initial cost of development is much higher than for
diesel generation.
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.
There are two hydroelectric projects currently on the POW grid:
Black Bear Lake Hydro (4.5 MW) storage mode of operation;
South Fork Hydro (2.0 MW) run-of-river mode of operation.
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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.
Hydropower is the main source of energy on the POW grid, with diesel generation needed to meet peak
loads up to 6 MWh annually. There are backup diesel generators in almost every community APC serves
on the island left over from before they were intertied with today’s grid. This project would also affect the
frequency of maintenance of the diesel generators, reducing the annual cost of O&M.
The Project would impact the existing energy system by reducing or eliminating the use of diesel, except
for maintenance or power outages. Because this project connects the Reynolds Creek Hydro Project,
which is lower in elevation than the other two hydro projects on the island, this project would not be
susceptible to freezing giving it more flexibility in its operations. The hydro project this transmission line
project will intertie will also allow better use of the storage reservoir at Black Bear Lake Hydro so that
water can be stored and used during drier months or provide for new peaking loads.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
APC sells power to all the communities presently on the POW grid. These communities include:
Hydaburg; Hollis, Klawock, Craig, Kasaan, South Thorne Bay, and Thorne Bay. Two other communities
are currently being added to the grid, Coffman Cove (2011) and Naukati (2013). APC’s two hydroelectric
projects generated 21,659,055 kWh in 2008 while generating 6,305,868 kWh with diesel generation.
Transmission lines throughout the island grid are primarily 34.5 kV, 3-Phase.
This transmission line from the Reynolds Creek Hydropower Project will give the energy customers more
stable rates by eliminating the use of diesel and because they presently rely primarily upon hydropower.
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
Renewable energy technology specific to location – The Project will be a transmission line connecting a
new 5 MW, storage hydroelectric project. Facilities to be constructed include:
~11 miles of three-phase 34.5 kV transmission line (wood poles, conductor, transformers)
<3 miles of new access road
Optimum installed capacity – 34.5 kV).
Anticipated capacity factor – N/A.
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Anticipated annual generation – The Project will interconnect a 5 MW storage resource on Prince of
Wales Island, approximately ten miles east of Hydaburg. Average annual energy production is projected
to be 19.3 million kilowatt-hours. Power will be sold to Alaska Power Company (“APC”) on a wholesale
basis and will displace over 6 million kilowatt-hours of diesel generation at current loads. Once the
transmission line is completed, and the hydro project is completed, the full load of the entire
interconnected grid on Prince of Wales Island will be met with renewable energy.
Anticipated barriers – There is always the potential for environmental issues, i.e. something an eagle nest
found in the transmission line right-of-way during construction, but since the road is already in place
except for about 3 miles of new road, there is a low probability this would occur. No barriers are
anticipated.
Basic integration concept – Integration of this type of transmission line with the existing grid will have no
difficulty as this same type of transmission line has been integrated many times on the island to create the
grid that exists today and APC owns and operates the existing grid.
Delivery methods – The Project will deliver power from the hydro project via a 34.5 kV, 11-mile-long
above ground transmission line to the existing 34.5 kV grid on the island.
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 set on both Sealaska Corporation and Haida Corporation land. A land lease agreement
with Sealaska Corporation is now being negotiated. Haida Corp is in a joint venture with APC, so this
presents no issues.
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
The following major permits have been received to construct, operate, and maintain the Project
subject to certain conditions:
• Federal Energy Regulatory Commission License (FERC Project No. 11480)
• Coastal Zone Consistency Determination No. AK 9902-06JJ from the State of Alaska, Office of the
Governor, Office of Management and Budget, Division of Governmental Coordination
• Fish Habitat Permit FG-00-I(POW)-0018 from the Alaska Department of Fish and Game
• Corps of Engineers Permit No. 2-950127 from the Department of the Army, U.S. Army Engineer District,
Alaska
An easement from the Alaska Department of Natural Resources for the transmission line for the crossing
of Hetta Inlet has been issued.
Articles of the FERC License require Haida Corporation to file for approval certain environmental plans,
as well as design drawings, specifications, and reports. HDR* has prepared five of the plans and has
submitted them for review by various state and federal agencies. Following receipt of agency comments,
they were submitted to FERC. The remaining seven plans are in various stages of development and were
all submitted to FERC by August 2010. The design drawings, specifications, and reports were developed
by HDR and submitted to FERC for approval, which were received.
*HDR is an engineering firm hired by Haida Corp to develop the environmental plans and final design for
construction to begin.
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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
All permits have been issued.
T&E Species: Are not expected to be encountered. APC will construct the transmission line with raptor
safety configuration and possibly some anti-perch devices placed on some poles.
Habitat Issues: No real habitat issues for the transmission line, other than using a raptor safety
configuration for the spacing of conductors. Appropriate erosion and sedimentation control measures are
spelled out in the permits to protect wetlands and any aquatic habitat encountered.
Wetlands: Wetlands will be avoided when possible. The ~11-mile transmission line will be in an existing
road corridor requiring little if any clearing and with 300-foot pole spacing will avoid most or all
wetlands. The approximately 3-miles of new road will be on slopes and most likely avoiding wetlands.
This has been analyzed and permitted by the state and federal agencies.
Archaeological Issues: There are no archaeological issues with this transmission line, primarily because
it will be in an existing cleared right-of-way.
Land Development Constraints: There are no land development constraints.
Telecommunications Interference: The 34.5 kV transmission line will not create interference with
telecommunications, although transformers sometimes can, however, this size of line is common for the
island and is located in a remote area. This size conductor is commonly placed adjacent to
telecommunication lines on the same poles on POW, causing no problems. Much higher voltages can
cause interference.
Aviation Considerations: This project is not near an airport or typical flight pattern, however, the aerial
crossing of Hetta Inlet will be marked with three different colors of ball like devices. The transmission line
will be configured to prevent avian electrocution as well.
Visual & Aesthetic Impacts: Visual and aesthetics are not an issue here because of the remote location.
There will be evidence of some human activity, but only in a narrow corridor at this remote site. Existing
visual impacts consist of logging roads and clearcuts.
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,
Renewable Energy Fund
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AEA12-001 Grant Application Page 13 of 17 7/1//2011
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
Anticipated project costs:
Phase IV – Transmission Line Construction: $3,840,000
Requested grant funding: $1,200,000 (additional funding needed to complete the transmission line)
Applicant matching funds: $240,000 (20%)
Other sources of funding: received $2,000,000 in AEA Round IV funding for this transmission line
Projected capital cost: $3,840,000
Projected development cost (for transmission line): $3,840,000
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.)
APC will operate and maintain the Project with proceeds from sale of power to its customers. No grant
funding is requested for operation and maintenance.
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
In order to facilitate construction and operations, Haida Energy was formed as a joint venture between
Haida Corporation and Alaska Power & Telephone (AP&T), with Haida Corporation’s interest in the
joint venture set at 75 percent and AP&T’s at 25 percent. Power will be sold by the joint venture to APC
on a wholesale basis.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
The Cost Worksheet is attached in Section 10 – Appendices.
Renewable Energy Fund
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AEA12-001 Grant Application Page 14 of 17 7/1//2011
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 people of Alaska will benefit from the Project development as follows:
Potential annual fuel displacement: The Project will displace about 429 gallons of diesel fuel in the first
year of operation, which equates to a savings of $1,630 (average 2011 fuel price of $3.80 per gallon,
which is expected to be $5.28/gallon in 2015; on average for the communities served by the grid on POW).
Over a 50 year period the Project could potentially save 21,450 gallons of diesel fuel valued at $81,510
(without assuming an escalation rate in the price of diesel fuel; i.e. based on 2011 price).
Anticipated annual revenue: Not estimated.
Potential additional annual incentives: Not estimated.
Potential additional revenue streams : Not estimated.
Non-economic public benefits to Alaskans: Reduced air emissions and noise, reduced chance for diesel
fuel spills.
Other benefits: The State of Alaska would spend less on the PCE program, since the Project generation
would decrease the amount of diesel generation subject to PCE reimbursement. In the short term the local
economy may benefit due to local hire for construction. In the long term, lower and more stable electric
rates could lead to more residential and commercial development, which in turn would add more income
to these communities.
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 joint venture Haida Energy will operate the Project and sell wholesale power to APC to feed the POW
electrical grid. APC will maintain the Project utilizing their background in hydroelectric resources
operation and maintenance. The Project will be remotely operated, with continuous monitoring by a
SCADA system. O&M personnel will visit the plant at least 2-4 times per month for routine checks on the
equipment. A routine maintenance schedule will be established, a brief annual shutdown is likely for
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 15 of 17 7/1//2011
maintenance.
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.
APC has ordered poles, transformers and conductor in early 2011. Construction of the transmission line
started in July 2011 with the AEA Round IV grant funding. Clearing the right-of-way was the initial
activity. Pole placement begins in late August. However, in order to complete the transmission line,
Round V funding will be needed.
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.
Although there are no current letters of support, they were likely received years ago when the project was
licensed. There can be little doubt that by funding a project like this through sources such as grants to
keep costs down and by getting the communities off of diesel, their rates will be lower on average and they
will have more stable rates. The communities on the island will support this type of infrastructure
addition.
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
APC is applying for grant funds in the amount of $1,200,000, from Round V. Matching funds of 20%
would amount to $240,000. Total costs for the transmission line to get hydropower out to the
communities is $3,840,000. Below is a budget for the whole Reynolds Creek Hydroelectric Project
showing where other sources of funding for that project has come from and the total costs of that project.
The joint venture, Haida Energy is seeking funds for the remainder of that project, which amounts to
approximately $6,000,000
A construction budget prepared by HDR Engineering is provided in the following table showing the
budget for the Reynolds Creek Hydroelectric Project the transmission line will carry electricity from.
Recon/Permitting & Design/Prelim Design $2,120,000
Final Design/Surveying/Final Permits 2,000,000
Construction
Construction Management $ 500,000
Mobilization 700,000
Access Facilities 1,000,000
Diversion Structure 1,000,000
Penstock 3,000,000
Powerhouse 4,000,000
Transmission Facilities 3,840,000
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Grant Application Round 5
AEA12-001 Grant Application Page 16 of 17 7/1//2011
Completion 300,000
14,340,000
Power Sales Agreement/Regulatory 125,000
$18,585,000
Funding sources for Project construction will include a combination of equity, grants, and debt. A loan
was also applied for to be used to repay Haida Corporation for part of its equity investment thus far and
for construction costs in excess of equity and grants.
Sources of Funds
Grants
Federal $ 1,340,000
State 4,000,000
Subtotal - Grants $ 5,340,000
Equity
To Date (Approximate) 4,000,000
Partial Equity Repayment* (1,095,000)
Subtotal - Equity 2,905,000 24%
PPF Loan 9,500,000 76%
Total $17,745,000
* From loan proceeds.
Haida Energy will be a regulated utility selling wholesale power to APC. As such, its return on equity
will be regulated by the Regulatory Commission of Alaska. Since equity has a much higher cost of capital
than debt, maximizing the supportable debt will lower the cost of power to the ratepayers.
The above summary of funding sources is based on a viable financing structure with the grants now in
hand. It is APC’s intention to seek additional grants, and if obtained, the debt and equity will be modified
as appropriate.
I Ren ewable Energy Fund ' ALASKA
.j ENE RGY AUTH OR ITY Grant Application Round 5
SECTION 10 -ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT TH .E,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 federa l , 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 2D11
7/1112011AEA 12-001 Grant Applic ation Page 17 of 17
REYNOLDS CREEK HYDRO PROJECT
APPENDICES
TABLE OF CONTENTS
1. Certificate of Public Convenience & Necessity
2. Corporate Resolution
3. Authorized Signers
4. Project Maps & Drawings
5. Project Description and Photos
6. Project Permits and License
7. Resume’s
8. Cost Worksheet
9. Grant Budget Form
10. Electronic Version Certification
CERTIFICATE OF PUBLIC
CONVENIENCE & NECESSITY
CORPORATE RESOLUTION
AUTHORIZED SIGNERS
Grant Documents Authorized Signers
Pl ease cl earl y p rint or ty pe all sections of this form.
Co m muni ty/Grantee Nam e : AL A SKA POWER COMPANY
Reg ul a r E lection is he ld: An nu a ll y I Date : A nnu al E lecti o n =M ay 2011
Autho rized G rant Si
P rin ted Name Title Te rm
Rob ert S. Grim m CEO / Preside nt
Gl en D. Martin
I autho rize the above person(s) to sign Grant Do cu me nts:
(H ighest ranki ng organization/com mu nity/m un icipal official)
Prin te d Name Title T e rm
Robert S. Grimm CEO / President Pe rmane nt
Gran tee Contact Inform ation:
Mailing Address: P .O. Box 3222
P ho ne Number: 360-385 -1733 x120
Fax Number: 360-385 -753 8
E-mai l Address: bob.g@aptalaska.com
Fisc a l Year E nd: December 31
Entity T~_e _(For-pro fi t or non-profit status): For Profit
Fe deral T ax ID #: 92-0 153693
Please s u bmit an updated form whenever there is a change to the abo ve information.
Pl ea se return the original completed for m to:
Al aska Energy Authority
813 W . Northern Lights Blv d.
AlASKAAnchorage, AK 9950 3 ENERGY AUTHORITYAttn: Butc h White, G rants Ad mini strator
H:\GRANTSIAEA Round V Ren ewable Energy Grants\GrantDocumentsAutho ri zedSignersS.doc
PROJECT MAPS & DRAWINGS
Land Ownership Map Sealaska Land Haida Corp Land
PROJECT DESCRIPTION & PHOTOS
Description of Transmission Corridor
The overall 34kV power line route is approximately 12 miles long. Approximately 0.9-mile of
the westernmost section is an existing APC 2kV distribution line that will be overbuilt. The line
will cross Hetta Inlet via Jumbo Island. The route primarily follows existing logging roads.
The power line will begin at a point along Hydaburg Road about 0.45 miles northeast of the
town. It will continue northeast along the existing logging road passing north of Deer Bay and
intersecting Hetta Inlet opposite Jumbo Island. This section is adjacent to private forested land
with a small section of Muskeg and is 7.0 miles long. The logging roads are mostly mild to
moderate cut sections with a few rock cuts. The first 0.9 miles of this section is an existing APC
corridor adjacent to the road established for a 2kV line.
The water crossing over Hetta Inlet will be accomplished with 3 multi-pole structures with one
on each side of the inlet and one at the pinnacle of Jumbo Island. Jumbo Island slopes steeply
toward the water on both sides and is heavily forested. A new corridor will need to be
established. The structure on the island will likely be set by helicopter. This crossing is 0.9
miles across.
The power line will continue in a new corridor for 0.3 mile to the east until it intersects an
existing logging road. Approximately 1500 feet of temporary or permanent access road spurs
will need to be constructed to access 2 line structures along this section.
The line route then turns south and follows existing loggings roads 3.8 miles southeast to the
powerhouse/switchyard location near Copper Harbor. This section is adjacent to private,
recently harvested forest land with very steep and rocky terrain prone to slides. The logging road
is primarily full bench construction with several rock cut sections. There are danger trees (and
boulders) above the power line route on the eastern side slopes that may need to be
removed/secured to protect the power line.
PERMITS & LICENSE
PERMITS & LICENSE
Permits and FERC license cover the whole Reynolds Creek Hydroelectric Project, but the
purpose of this grant application is to cover costs for the transmission line only.
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RESUME’S
COST WORKSHEET
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. 5 MW
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 Railbelt 1 grid, leave this section blank)
i. Number of generators/boilers/other 14 Diesel units and 2 hydro units
ii. Rated capacity of generators/boilers/other 9780 kVa Diesel and 6500 kVa Hydro
iii. Generator/boilers/other type
iv. Age of generators/boilers/other Average age is 20 years
v. Efficiency of generators/boilers/other 14 kWh/gal diesel units
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] Diesel = 2.137 mWhs Hydro= 20.353 mWhs (10 mos ytd 2009)
ii. Fuel usage
Diesel [gal] 152,343 gallons (10 mos ytd 2009)
Other
iii. Peak Load 6480 kVa
iv. Average Load 3460 kVa
v. Minimum Load 1980 kVa
vi. Efficiency 14.03 kWh/gal
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] N/A
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] N/A
vi. Other N/A
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
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]
New Reynolds Creek Hydro project
5 MW designed capacity
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 250,000 kWhs for emergency operations
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other
4. Project Cost
a) Total capital cost of new system $3,840,000.00
b) Development cost $1,440,000 (total additional funds needed to
complete the transmission line)
c) Annual O&M cost of new system
d) Annual fuel cost
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 134,786 gallons annually
ii. Heat
iii. Transportation
b) Current price of displaced fuel $3.80/gal x 134,786 gallons $512,187.00 annually
c) Other economic benefits
d) Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback (years)
GRANT BUDGET FORM
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 Contractor completes construction 10-31-2012 $ $ Cash, Labor, & Benefits $1,005,400.00 Final testing, energization, and closeouts 11-30-2012 $ $ Cash, Labor, & Benefits $434,600.00 $ $ $ $ $ $ $ $ $ TOTALS $1,200,000 $240,000 $1,440,000.00 Budget Categories: Direct Labor & Benefits $ $ $429,600.00 Travel & Per Diem $ $ $5,000.00 Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $1,005,400.00 Other $ $ $ TOTALS $1,200,000 $240,000 $1,440,000.00 Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)- Add additional pages as needed
RFA AEA12‐001 Grant Budget Instructions Page 1 of 5 7‐1‐11
Renewable Energy Fund Round 5
Grant Budget Instructions
NOTICE TO GRANTEES
Reimbursement to a Grantee under this program is on a cost reimbursable basis. In
accordance with the terms of the grant a Grantee is required to submit certified requests
for reimbursements that document commitments and expenditures and demonstrate
meeting milestones identified in the grant.
A proposed reimbursement schedule tied to completion of milestones must be identified
in the applicant’s proposal. The Alaska Energy Authority (“AEA” or “Authority”) will not
approve a reimbursement schedule that does not reflect costs or commitments tied to
the accomplishment of milestones identified in the grant. The final reimbursement
schedule is subject to negotiation and will be incorporated into the grant agreement.
The Authority may authorize a percentage of grant funds, up to 20% depending on the
type of grant, as an advance reimbursement at the startup of the grant.
The Authority may also withhold up to 20% of the total grant subject to completion of the
project and submission of final reports and other documentation that may be required by
the grant.
A Grantee is required to account for and document all expenditures of grant and
matching funds including documentation of expenditures on any advanced
reimbursement. All requests for reimbursement are subject to audit by the Authority.
The Grantee is also required to comply with 2.AAC.45.010, the State Single Audit
regulations.
1. Budget Form
Information concerning the proposed grant budget needs to be provided on the Grant Budget
Form. The Grantee must tie their budget request to the proposed milestones they propose in
their application. Examples of milestones for each project phase are included with the budget
form and in Section 2 of the RFA.
For the purposes of determining potential cash-flow and a reimbursement schedule Grantees
should use the form to identify the proposed date that the milestone would be met, the
anticipated amount of grant funds to be expended to meet that milestone, and the amount and
type of matching resources they intend to apply to that milestone.
The bottom part of the form includes the allowable Budget Categories and is intended to be a
summary of types of cost for each phase of the grant.
2. Allowable Costs
Allowable costs for a grant include all reasonable and ordinary costs for direct labor and
benefits, travel, equipment, supplies, contractual services, construction services, and other
direct costs identified that are necessary for and incurred as a direct result of the project.
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Grant Budget Instructions Renewable Energy Fund Round 5
A cost is reasonable and ordinary if, in its nature or amount, it does not exceed that which would
be incurred by a prudent person under the circumstances prevailing at the time the decision was
made to incur the costs.
Allowable costs under this grant include all reasonable and ordinary costs for direct labor &
benefits, travel, equipment, supplies, contractual services, construction services, and other
direct costs identified and approved in the Project budget that are necessary for and incurred as
a direct result of the Project and are consistent with the requirements of the grant agreement.
A cost is reasonable and ordinary if, in its nature and amount, it does not exceed that which
would be incurred by a prudent person under the circumstances prevailing at the time the
decision was made to incur the costs.
Allowable costs are only those costs that are directly related to activities authorized by the Grant
Agreement and necessary for the Project. The categories of costs and additional limits or
restrictions are listed below:
a. Direct Labor & Benefits
Include salaries, wages, and employee benefits of the Grantee’s employees for that portion
of those costs attributable to the time actually devoted by each employee to, and necessary
for the Project. Direct labor costs do not include bonuses, stock options, other payments
above base compensation and employee benefits, severance payments or other termination
allowances paid to the Grantee’s employees.
b. Travel, Meals, or Per Diem
Include reasonable travel expenses necessary for the Project. These include necessary
transportation and meal expenses or per diem of Grantee employees for which expenses
the employees are reimbursed under the Grantee’s standard written operating practice for
travel and per diem or the current State of Alaska Administrative Manual for employee
travel.
c. Equipment
Include costs of acquiring, transporting, leasing, installing, operating, and maintaining
equipment necessary for the Project, including sales and use taxes. Equipment owned by
the Grantee is to be charged to the project at the monthly rates contained in the Data Quest
Blue Book. The rates for equipment owned by the Grantee for less than a month’s duration
are to be computed on an hourly charge determined by dividing the monthly rate by 176.
Equipment rented by the Grantee can be charged to the grant at actual invoiced charge
rates, subject to a maximum amount equal to the hourly rates contained in the Data Quest
Blue Book. The Authority’s Project Manager must approve all equipment charge rates to be
used by the Grantee. The Data Quest Blue Book is available to the AEA Project Managers
and grantees may contact them for current allowable rates.
Subject to prior approval of the Authority’s Project Manager, costs or expenses necessary to
repair or replace equipment damage or losses incurred in performance of work under the
grant may be allowed. However, damage or losses that result from the Grantee’s
RFA AEA12‐001 Grant Budget Instructions Page 3 of 5 7‐1‐11
Grant Budget Instructions Renewable Energy Fund Round 5
employees, officer’s, or contractor’s gross negligence, willful misconduct, or criminal conduct
will not be allowed.
d. Materials and Supplies
Include costs of material, office expenses, communications, computers, and supplies
purchased or leased by the Grantee necessary for the Project.
e. Contractual services
Include the Grantee’s cost of contract services necessary for the Project. Services may
include costs of contract feasibility studies, project management services, engineering and
design, environmental studies, field studies, and surveys for the project as well as costs
incurred to comply with ecological, environmental, and health and safety laws.
f. Construction Services
For construction projects this includes the Grantee’s cost for construction contracts, labor,
equipment, materials, insurance, bonding, and transportation necessary for the Project.
Work performed by the Grantee’s employees during construction may be budgeted under
direct labor and benefits. Contracted project management or engineering may be budgeted
under contractual services and major equipment purchases made by the Grantee may be
budgeted under equipment.
g. Other Direct Costs In addition to the above the following expenses necessary for the
Project may be allowed.
Net insurance premiums paid for insurance required for the grant Project;
Costs of permits and licenses for the grant Project;
Non-litigation legal costs for the Project directly relating to the activities; in this
paragraph, “non-litigation legal costs” includes expenses for the Grantee’s legal staff and
outside legal counsel performing non-litigation legal services;
Office lease/rental payments;
Other direct costs for the Project directly relating to the activities and identified in the
grant documents; and/or
Land or other real property or reasonable and ordinary costs related to interests in land
including easements, right-of-ways, or other defined interests.
3. Specific Expenditures not allowed
Ineligible expenditures include costs for overhead, lobbying, entertainment , alcohol, litigation,
payments for civil or criminal restitution, judgments, interest on judgments, penalties, fines,
costs not necessary for and directly related to the grant Project, or any costs incurred before the
beginning date of the grant as indicated on the signature page.
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Grant Budget Instructions Renewable Energy Fund Round 5
Overhead costs described in this section include:
salaries, wages, applicable employee benefits, and business-related expenses of the
Grantee’s employees performing functions not directly related to the grant Project;
office and other expenses not directly related to the grant Project; and
costs and expenses of administration, accounting, human resources, training, property
and income taxes, entertainment, self-insurance, and warehousing.
4. Match and Cost Sharing
If the Applicant is providing a match, it is should be detailed either as a specific dollar amount or
as a percentage of the total project budget. The type and amount of matching contributions
should be discussed in the application under section two.
Cost sharing or matching is that portion of the Project costs not borne by the Authority. The
Authority will accept all contributions, including cash and in-kind, as part of the Applicants‟ cost
sharing or matching when such contributions meet the following criteria:
Are provided for in the Project budget;
Are verifiable from the Applicant’s records;
Third party costing sharing contributions are verifiable (with a letter of intent or similar
document);
Are not included as contributions for another state or federally assisted project or
program (i.e., the same funds cannot be counted as match for more than one program);
Are necessary and reasonable for proper and efficient accomplishment of the Project or
program objectives;
Are allowable costs;
Are not paid by the State or federal government under another award, except for
authorized by the State or federal statute to be used for cost sharing or matching;
Must be incurred within the grant eligible time period.
Any match proposed with the application will be required in the Grant award and the Grantee
will be required to document the use of the proposed matching funds or in-kind contributions
with their request for reimbursement.
Previous Renewable Energy Fund grants will not be counted as match.
5. Valuing In-Kind Support as Match
If the Applicant chooses to use in-kind support as some; or, its entire match, the values of those
contributions will be reviewed by the Authority at the time the budget is approved. The values will
be determined as follows:
The value of real property will be the current fair market value as determined by an
independent third party or a valuation that is mutually agreed to by the Authority and the
Applicant and approved in the grant budget.
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Grant Budget Instructions Renewable Energy Fund Round 5
The value assessed to Applicant equipment or supplies will not exceed the approved
equipment rates or fair market value of the supplies at the time the grant is approved or
amended.
Equipment usage will be valued based on approved usage rates that are determined in
accordance with the item „c.‟ above. Rates paid will not exceed the fair market value of
the equipment if purchased.
Rates for donated personal services will be based on rates paid for similar work and skill
level in the recipient’s organization. If the required skills are not found in the recipient
organization, rates will be based on rates paid for similar work in the labor market.
Fringe benefits that are reasonable, allowable, and allocable may be included in the
valuation.
Transportation and lodging provided by the Applicant for non-local labor will not exceed
the commercial rates that may be available within the community or region.
6. Grant Disbursements
Applicants are reminded that they must request disbursement of grant funds in the form and
format required by the Authority with appropriate back-up documentation and certifications.
This format will be provided by the Authority.
The back-up documentation must demonstrate the total costs incurred are allowable, and reflect
the amount being billed. Documentation must include:
A summary of direct labor costs supported by timesheets or other valid time record to
document proof of payment.
Travel and per diem reimbursement documentation.
Contractor or vendor payment requests.
Invoices.
Payment of grant funds will be subject to the Applicant complying with its matching contribution
requirements of the proposed grant.
Payment of grant funds will be made by AEA to the Grantee within 30 days of receipt of a
properly completed, supported, and certified Reimbursement Request.
ELECTRONIC VERSION ENCLOSED - CERTIFICATION
ELECTRONIC VERSION ENCLOSED – CERTIFICATION
This is to certify that one electronic version of this grant application on a CD was
included with the two hard copies.
Respectfully,
Glen D. Martin
Resource Assessment, Permitting, Grant Writing
Date: August 22, 2011