HomeMy WebLinkAboutJack River Grant App EA
Renewable Energy Fund Round 5
Grant Application
AEA 12-001 Application Page 1 of 14 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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Grant Application Round 5
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Native Village of Cantwell
Type of Entity: Government Entity (Tribal Government) Fiscal Year End September 30
Tax ID # 92-0046670 Tax Status: For-profit or X non-profit ( check one)
Mailing Address
P.O. Box 94; Cantwell, AK 99729
Physical Address
133.4 Denali Hwy, Cantwell, AK 99729
Telephone
907-768-2591
Fax
907-768-1111
Email
hallvc@mtaonline.net
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Veronica Nicholas
Title
President, Native Village of Cantwell
Mailing Address
P.O. Box 94; Cantwell, AK 99729
Telephone
907-768-2591
Fax
907-768-1111
Email
hallvc@mtaonline.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
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.
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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)
Type in your answer here and follow same format for rest of the application.
Jack River Hydro Project Phase 2
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project.
Location – latitude and longitude or street address or community / communities served:
This project is located approximately at mile post 131Denali Hwy (Jack River in Cantwell
Alaska). Communities that will benefit from this project are communities that are part of the
Alaska Intertie System that runs between Fairbanks and Anchorage.
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
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
X Feasibility Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The Native Village of Cantwell wishes to improve the reliability and lower the cost of the
community of Cantwells power system. Currently they obtain power from the line between MEA
and GVEA (Alaska Intertie System). To accomplish this they propose to build a hydroelectric
project on the Jack River, a short distance from Cantwell. The installed capacity of this plant will
be in exccess of 1 MW. It will be comprised of a dam and a short tunnel. A feasibility design
and scoping are required to provide the parameters of the project.
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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.)
A hydroelectric plant is proposed on Jack River. This plant will help contribute renewable
energy into the Alaska Intertie System that runs between Fairbanks and Anchorage. The Jack
River runs within one mile of the village. The Native Village of Cantwell, the Community of
Cantwell, Carlo Creek and McKinley Village need the power for standby as they are served off
of the MEA-GVEA intertie only. Damage to the line from an avalanche caused a two day outage
in the dead of the winter; temperatures without wind chill can be –50 F in this area. High winds
are constant in the Cantwell area so the wind chill is even colder. Such a transmission failure can
be much longer and poses a grave hazard to the local people. Previous years ago Cantwell had a
two hour outage from a lightning strike. If it had damaged an insulator it could have lasted for a
day or more.
Cantwell also wants to use this renewable local resource to reduce power costs for the Alaska
Intertie System that runs between Fairbanks and Anchorage.
The hydro plant will be located where the river passes through a very narrow deep canyon. A
dam will be constructed across this 50 foot wide canyon whose sides are almost vertical. The
dam will store water that will be diverted through a 1500 foot or so tunnel and will be returned to
the river after passing through a Francis turbine(s). The capacity will vary depending on the
economical height of the dam and the water flows that can be obtained and utilized. The power
will be transmitted to the Alaska Intertie System.
Golden Valley Electrical Association intends to install 25 MW of wind near Healy. Jack River
project with storage may be capable of stabilizing the system.
A preliminary design and scoping study will be required. As part of this endeavor, measurements
will be made of stream flows. These will be correlated with flows from nearby streams. With this
data and accurate surveys and geological work, a dam type and height will be selected. The water
passage selection may be a small tunnel or micro tunnel excavated with a boring machine. The
estimated tunnel length is within the capacit y of such a machine. Part of the conveyance may be
in a pipeline fastened to cliffs. It will be insulated from the extreme cold temperatures.
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.
Funds will be needed for the following.
Continuation in Hydrologic data collection and analysis.
Geologic sampling and geotechnical work such as minor drilling/sampling and/or seismic to
ascertain if the dam site will be stable depth under bottom to bed rock and to provide data to
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determine how a tunnel can be constructed.
The continuation of the scoping and design as site information is provided. The type of dam and
its basic design and approximate cost will be determined.
Tunnel diameter and construction will be ascertained.
The types of diversion systems and access to the dam as well as potential practical materials will
receive consideration and analysis.
Determination of type of turbine and potential and probable project generation.
Consideration of the capability to provide peaking as well as power for backup to the local area.
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. $190,000
2.7.2 Other Funds to be provided (Project match) $10,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $200,000
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)
$200,000
2.7.5 Estimated Direct Financial Benefit (Savings) $In excess of grant
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.)
$ In excess of grant the
work needed to be done
to refine these costs
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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.
Type in your answer here and follow same format for rest of the application.
The Native Village of Cantwell has been working with Polarconsult Alaska, Inc. for several
years to get a feasibility study done for the Jack River Hydro project. Once funding has been
secured to do a feasibility study for the Jack River Hydro project, the village will hire
Polarconsult Alaska, Inc. to proceed with this study. Polarconsult Alaska, Inc. will be providing
the information requested from the above question.
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.)
Once the village has secured funding for the Jack River Hydro project the village expects
Polarconsult Alaska, Inc. to take one year to do a feasibility study for this project. This study
will determine if the Jack River Hydro project is viable and cost effective.
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.)
The village is in the process of doing a pre pre-study for the Jack River Hydro project. The
village will receive the amount of $30,000.00 from the State of Alaska to do this study. The
second task that the village needs to do is secure funding to complete the feasibility study for the
Jack River Hydro project. Once this funding has been secured the next task is to find a vendor to
do the feasibility study. The Native Village of Cantwell has been working with Earle Ausman,
President and Chief Energy Engineer with Polarconsult Alaska, Inc., for several years to get a
study done for this hydro project and they will be the vendor doing the feasibility study for this
project. Polarconsult Alaska, Inc. will be mapping, doing geologic work, doing economic
analysis and stream gauging for one year to determine if this project is viable.
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.
To accomplish this project the Native Village of Cantwell will be using all of its resources. The
village administrator has already spent many years to try and secure funding to do a feasibility
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study for this project and will continue to do so until a study is done for this project. The village
has also used and will continue to use its office, computer, telephone, fax and other office
equipment until this project is accomplished. Village members have and will continue to
volunteer their time and experience (experience as an electrician, owner of a construction
company, etc...) until this project is completed.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The Village Administrator will be the liaison between the village, Polarconsult Alaska and the
Alaska Energy Authority for the duration of this project. The village will be submitting quarterly
reports to the Alaska Energy Authority until this project is done.
3.6 Project Risk
Discuss potential problems and how you would address them.
One potential problem is not getting funding from the State of Alaska to do a feasibility study for
the Jack River Hydro project. If this should occur the village will continue to look for funding
through the State and the Federal Government to do this study.
Another potential problem that the village might encounter, after doing a feasibility study and it
is determined the Jack River Hydro project is viable and cost effective, is lack of funding to start
construction. This project will provide the Alaska Intertie System with many benefits, that the
village is encouraged to continue looking for funding through the State and the Federal
Government to accomplish this project.
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.
Attached are comments from Earle Ausman, PE with Polarconsult Alaska, Inc. that addresses the
question above:
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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.
Currently the village and the surrounding area (Carlo Creek and McKinley Village) are served off
of the MEA-GVEA intertie (Alaska Intertie System). As mentioned earlier if an avalanche,
winds or some other event causes an outage north or south of these areas; these areas will not
have any power until the problem is fixed.
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.
As mentioned above the village is served off of the MEA-GVEA intertie (Alaska Intertie
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System). The Jack River Hydro project can serve as power for standby for the Cantwell, Carlo
Creek and McKinley Village areas. The Jack River Hydro project will benefit the communities
that are served off of the Alaska Intertie System (the Alaska Intertie System runs between
Fairbanks and Anchorage) because it will add renewable power to the system. The renewable
power generated by the Jack River Hydro project will also help lower power costs for all
communities along the intertie system. The Project will likely have a positive impact on the 25
MW wind farm at Healy as it likely can be used to deal with leveling power variations from wind
generation.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Energy costs for communities served off of the Alaska Intertie System are high due to the high
costs of fuel. The Native Village of Cantwell is spending $300.00 (this cost will increase as it
gets colder) on electricity to heat the Cantwell Community Hall where the village council office is
located. The Jack River Hydro project can help lower this cost by providing renewable power to
the Alaska Intertie System.
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
Once the village secures funding to do feasibility study the village will hire Polarconsult Alaska,
Inc. to address these questions. Polarconsult Alaska, Inc. has the experience and knowledge to
answer the questions above. Concerning the land ownership where this project is located, the
village has already entered into discussions with Ahtna, Inc. concerning this project. Ahtna
supports the village on this project.
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.
As mentioned above the village has already had discussions with Ahtna, Inc., land owner where
this project is located and is in support of the village on this project. Once a feasibility study is
done and it is determined this project is viable the village will formally submit paperwork to
Ahtna, Inc. to use the land where this project is located.
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4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
Once the village secures funding to do a feasibility study for this project the village will hire
Polarconsult Alaska, Inc. and with their experience and knowledge they will be able to better
answer the questions above.
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
Once the village secures funding to do a feasibility study for this project the village will hire
Polarconsult Alaska, Inc. and with their experience and knowledge they will be able to answer the
environmental questions above.
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 feasibility phase is $200,000.
Requested grant funding $190,000.
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system In the order of $60,000,000
Projected development cost of proposed renewable energy system
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.)
Once the village secures funding to do a feasibility study for this project the village will hire
Polarconsult Alaska, Inc. and with their experience and knowledge they will be able to answer the
questions above.
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
Once the village secures funding to do a feasibility study for this project the village will hire
Polarconsult Alaska, Inc. and with their experience and knowledge they will be able to answer the
questions above.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
Please see attached cost worksheet.
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated
renewable energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
Cities that are connected to the Alaska Intertie System that runs between Fairbanks and
Anchorage will benefit from this project. Renewable power that the Jack River Hydro Project
will add to the Alaska Intertie System will lower the cost of energy to all cities served off of the
Alaska Intertie System. Standby power for the Cantwell, Carlo Creek and McKinley Village areas
is another benefit that this project will provide. Currently if an avalanche, wind or some other
thing causes an outage north or south of these areas, these areas will not have any power until the
problem is fixed.
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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
Once the village secures funding to do a feasibility study for this project the village will hire
Polarconsult Alaska, Inc. and with their experience and knowledge they will be able to answer the
questions above.
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.
Once the tribe is awarded this grant, the tribe will hire Polarconsult Alaska Inc. to do a feasibility
study for the Jack River Hydro Project. The tribe has been working with Polarconsult Alaska,
Inc. for several years to get a feasibility study done for the Jack River Hydro Project. Currently
the tribe has not been able to secure any funds to do a feasibility study for this 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.
As mentioned above the village is served off of the MEA-GVEA intertie (Alaska Intertie
System). The Jack River Hydro project can serve as power for standby for the Cantwell, Carlo
Creek and McKinley Village areas. The Jack River Hydro project will benefit the communities
that are served off of the Alaska Intertie System (the Alaska Intertie System runs between
Fairbanks and Anchorage) because it will add renewable power to the system. The renewable
power generated by the Jack River Hydro project will also help lower power costs for all
communities along the intertie system.
Attached to this application are letters of support from David M. Talerico (Denali Borough
Mayor), Steven W. Denton (V.P. Business Development, Usibelli Coal Mine, Inc.), Paul R.
Anderson (Superintendent, Denali National Park and Preserve), Michel J. Wright (GVEA, Vice
President of Transmission & Distribution), Todd Hoener (GVEA Energy Efficiency Specialist)
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and Kathryn Martin (Ahtna, Vice President Land and Resources).
SECTION 9 – GRANT BUDGET
Tell us how much you want in grant funds Include any investments to date and funding sources,
how much is being requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by milestones using the form – GrantBudget5.doc
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
The Native Village of Cantwell is requesting the amount of $190,000.00 to do a feasibility study
for the Jack River Hydro Project. The village has been trying to get a feasibility study done for
this project for several years and the village has been using its own funds to pay the
administrator to accomplish this goal. Village members have and will continue to donate their
time and experience to this project until this project is complete.
SECTION 10 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant’s Project Manager, key staff, partners,
consultants, and suppliers per application form Section 3.1 and 3.4. Applicants
are asked to separate resumes submitted with applications, if the individuals do
not want their resumes posted.
B. Cost Worksheet per application form Section 4.4.4.
C. Grant Budget Form per application form Section 9.
D. Letters demonstrating local support per application form Section 8.
E. An electronic version of the entire application on CD per RFA Section 1.7.
F. Authorized Signers Form.
G. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
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- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
H. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name Veronica Nicholas
Signature
Title President, Native Village of Cantwell
Date