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HomeMy WebLinkAboutWrangell EV study REF4GrantApplication 15Sept2010 Renewable Energy Fund Round IV Grant Application AEA 11-005 Application Page 1 of 15 7/21/2010 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/RE_Fund-IV.html Grant Application Form GrantApp4.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 Costworksheet4.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget4.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 GrantBudgetInstructions4.pdf Instructions for completing the above grant budget form. 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 IV AEA11-005 Grant Application Page 2 of 15 7/21/2010 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City and Borough of Wrangell Type of Entity: Local Municipal Entity Mailing Address City and Borough of Wrangell P.O. Box 531 Wrangell, AK 99929 Physical Address City and Borough of Wrangell 205 Brueger Street Wrangell, AK 99929 Telephone Fax Email 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Timothy Rooney Title Borough Manager Mailing Address PO Box 531, Wrangell, AK 99929 Telephone 907-874-2381 - Fax 907-874-3952 Email tdrooney@wrangell.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or X A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 3 of 15 7/21/2010 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) Wrangell Electric Vehicle Feasibility Study 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project. Wrangell, Alaska 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) X Reconnaissance Design and Permitting X Feasibility Construction and Commissioning X Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. This project is a conceptual design/feasibility study of localized testing and evaluation of electric vehicles and related infrastructure in an Alaska community, using locally-generated renewable electricity to displace the use of gasoline and diesel vehicle fuel. The community served by this project is Wrangell, Alaska. Directly involved in this project is the City and Borough of Wrangell (City), through Wrangell Municipal Light and Power (WMLP), and the Southeast Alaska Power Agency (SEAPA). The City is requesting grant funds for a feasibility/design study/cost estimate of an electric vehicle charging station in Wrangell, presumably to be located at City-owned buildings such as the WMLP/public works, well as a feasibility/market study of the types of electric vehicles most appropriate for use in Wrangell. Different business models, including an EV rental car pool, would be explored. Cost estimates for partially converting the city‟s vehicle fleet to EVs could also be prepared. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 4 of 15 7/21/2010 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) The main public benefit of using electric vehicles would be reduced fuel costs for Wrangell drivers, and for the City & Borough of Wrangell‟s municipal vehicle fleet. Another benefit is reduced local air pollution from automobiles. Assuming a rate of $0.08/kWh for electricity used for vehicle battery charging, and a vehicle efficiency of 4 miles/kWh, the cost of using WMLP energy for an electric vehicle is estimated to be $0.02/mile. Assuming that the equivalent gasoline-powered vehicle has an average fuel economy of 30 miles/gallon, the gasoline/diesel fuel equivalent cost of $0.02/mile would be $0.60/gallon. Assuming an average gasoline/diesel fuel retail price in Wrangell of $4.00/gallon, electric vehicles would cut vehicle fuel equivalent cost by nearly 85% (from $0.13/mile to $0.02/mile), or a savings of $0.11/mile driven. The estimated fuel displacement is 40 gallons of gasoline per 1000 vehicle-miles driven, or 80 gallons per year if the vehicle is driven in Wrangell 2,000 miles annually (assumption used in section above). 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. A grant in the amount of $112,500 is being requested (Total Project of $125,000). This amount is broken down as follows: Reconnaissance, Feasibility, Design and Permitting Phases - $49,500 Construction Phase- $75,500 (including $40,000 for a purchase of an electric vehicle) 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. $ 112,500 2.7.2 Other Funds to be provided (Project match) $ 12,500 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 125,000 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) $125,000 2.7.5 Estimated Direct Financial Benefit (Savings) $0.11/mile driven Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 5 of 15 7/21/2010 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. Overall project management of the project will be performed by Steve Henson, Electric Superintendent for WMLP. Mr. Henson has over 39 years of experience in the electrical, oil and gas, mining, and construction industry. He has been the project manager for numerous projects in excess of $10 million dollars. His experience includes 10 years as the Maintenance Electrician/Operator for the Tyee Hydroelectric Facility and for the past three years, he has been Electrical Superintendent for Wrangell Municipal Light and Power. Mr. Henson‟s full resume has been attached. The following are references for Mr. Henson: Mr. Dave Carlson, CEO SEAPA 1900 First Avenue, Suite 318 Ketchikan, AK 99901 (907) 228-2281 Email: dcarlson@seapahydro.org Mr. Joe Nelson Electrical Superintendent City of Petersburg (907) 772-4621 Email: pmpl@ci.petersburg.ak.us Mr. Tim Rooney Manager, City and Borough of Wrangell PO Box 531, Wrangell, AK 99929 (907) 874-2381 Email: tdrooney@wrangell.com 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.) It is anticipated that the project would begin in July 2011, and completed by the end of 2012. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 6 of 15 7/21/2010 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.) Reconnaissance, Feasibility, Design and Permitting Phases - 1. Project scoping and contractor solicitation- 10/1/2011 2. Detailed energy resource analysis- 12/1/2011 3. Identification of land and regulatory issues- 12/1/2011 4. Permitting and environmental analysis- 12/1/2011 5. Detailed analysis of existing and future energy costs and markets- 12/1/2011 6. Assessment of alternatives- 12/1/2011 7. Conceptual design analysis and cost estimate- 3/1/2012 8. Detailed economic and financial analysis- 3/1/2012 9. Conceptual business and operations plans- 3/1/2012 10. Final report and recommendations- 3/1/2012 Construction Phase- 1. Confirmation that all design and feasibility requirements are complete- 4/1/2012 2. Completion of bid documents- 5/1/2012 3. Contractor/vendor selection and award- 6/1/2012 4. Construction of charging station- 8/31/2012 5. Integration and testing- 9/30/2012 6. Electric vehicle procurement- 8/31/2012 7. Final acceptance, commissioning and start-up- 10/31/2012 8. Operations Reporting- 12/31/2012 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. WHPacific, Inc., Anchorage, Alaska- WHPacific is the largest 100% Native American-owned engineering and architectural firm in the United States, provide its clients with a broad range of high-quality land development, engineering, surveying, and planning services. For the Wrangell electric vehicle conceptual design/feasibility study, WHPacific will provide: Conceptual designs and preliminary cost estimates of electric vehicle charging infrastructure, and comparison of different types of charging stations and related infrastructure. This will include a review of the existing electrical system at buildings/locations where charging stations could be installed, a review of codes/standards and permit requirements for the charging station(s), and a study of impacts that electric vehicle charging to the local WMLP distribution grid system. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 7 of 15 7/21/2010 Feasibility/market study of different electric vehicle types that could be practical in Wrangell. Study of „smart grid‟ and demand-side management applications associated with electric vehicle battery charging in Wrangell, including interruptible loads for peak shaving and utilization of vehicle battery storage capacity for local grid stability. Brian Yanity, EIT WHPacific’s Renewable Energy Specialist Mr. Yanity is a recognized leader and has experience with micro-hydro sites in Alaska. He is currently the project leader on several micro-hydro feasibility projects in the Girdwood area. Mr. Yanity also has experience with HOMER Modeling, wind resource assessment and electric power systems planning for rural Alaskan communities. Brian recently had a feature article published in the magazine International Water Power and Dam Construction, titled “Transmitting development strategies”, about hydropower and transmission line developments in Southeast Alaska. Ed Carlson, PE WHPacific’s Sr. Electrical Engineer Ed has designed electrical systems for a variety of public structures ranging from schools and military facilities, to courthouses and scientific centers. He is skilled in programming specialty spaces such as critical care units that includes remodel and new designs schematics. He thoroughly inspects systems to verify they are installed and working correctly. Ed‟s lighting projects have received national recognition and prestigious awards. The Homer Library project on which Ed was lead electrical engineer is registered with the USGBC as a LEED Silver project, which required meticulous design, emphasis on energy conservation through product selection, lighting controls, and day-light harvesting. Dennis Sharp, EIT WHPacific’s Project Electrical Engineer Dennis Sharp is an energetic and talented Electrical Designer who, prior to joining WHPacific, spent more than 20 years in systems development. His experience includes providing electrical and mechanical design, materials specification, and the integration of special test equipment panels. He was a hands-on field engineer, assisting US Air Force technicians in troubleshooting problems and was responsible for technical decisions and oversight of technicians and other engineers to ensure all tasks were accomplished. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Throughout the life of the project, the Project Manager will provide written monthly updates to AEA which will include at minimum: Expenditures to date Percent complete; and Narrative on progress including any schedule changes. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 8 of 15 7/21/2010 In addition to the monthly progress reports, communication on project status will also be provided verbally with the AEA Project/Program Manager on an informal basis through emails and phone conversations. 3.6 Project Risk Discuss potential problems and how you would address them. The standard project risk of the possibility of cost overruns is mitigated on this project by providing a 20% contingency cost in our projected project cost. Cost overruns will also be mitigated by effectively managing the project. Risks and impacts to WMLP‟s existing power distribution system by electric vehicle charging will be analyzed in the feasibility study. 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. The vast majority of WMLP‟s electrical power is provided by SEAPA‟s hydroelectric facilities of Tyee Lake and Swan Lake, each of which currently have a generating capacity of 22.5 MW each. In addition, the SEAPA interconnected system (including Wrangell, Petersburg and Ketchikan) has an additional 19.2 MW of hydroelectric and 33.2 MW of diesel generation capacity, as described in section 4.2.1 below. There is approximately 13 MW of excess during the summer months and an excess of 9 MW during the winter. There is no other economically feasible alternative for this project since the hydroelectric power produced by the existing SEAPA system is the most cost effective form of energy available, in comparison to diesel and other petroleum fuels. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 9 of 15 7/21/2010 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The existing SEAPA energy system (AK-BC Intertie Feasibility Study, Hatch Acres, 2007) Existing generation site Diesel capacity (MW) Hydro capacity (MW) Average annual hydro energy generated (MWh) Ketchikan 15.0 12.3 69,600 Swan Tyee - 22.5 78,275 Tyee Lake - 22.5 116,800 Wrangell 8.1 - - Petersburg 10.1 2.0 10,400 Total 33.2 59.3 275,075 The 138 kV Swan-Tyee Intertie, which connected the previously isolated Tyee-Wrangell- Petersburg and Swan-Ketchikan systems, was completed in late 2009. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. Automobiles currently used in Wrangell, both private and City-owned vehicles, use gasoline or diesel fuel. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The maximum estimated average annual electric load resulting from electric vehicles in Wrangell, with population of 2,000 people, is about 100 kW based on the following assumptions: On average, that 80% of Wrangell‟s population (1,600 people) each drives an average of 2,000 miles per year (or 5.5 miles per day) in personal vehicles on the road system of Wrangell Island. These assumptions result in a total of 3,200,000 vehicle-miles driven per year that could be potentially be a market for electric vehicles. Based on an average electric vehicle efficiency of 4 miles/kWh, powering 3,200,000 electric vehicle miles would require 800,000 kWh of electricity (not including battery charging losses). The 800,000 kWh for electric vehicle battery charging would result in an average annual load increase of 90 kW for WMLP (dividing 800,000 kWh by 8760 hours/year). However, the instantaneous load of charging a large number of electric vehicles simultaneously could be as high as several hundred kW. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 10 of 15 7/21/2010 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 Reconnaissance, Feasibility, Design and Permitting Phases- The Wrangell electric vehicle charging infrastructure has not yet been designed, but a design and cost estimate of a charging station will be produced during this feasibility study, design and permitting phase. The three main tasks of the this project, to be funded with grant funds, are: A feasibility/design study/cost estimate of an electric vehicle charging station in Wrangell, presumably to be located at City-owned buildings such as the WMLP/public works building. Conceptual designs and preliminary cost estimates of electric vehicle charging infrastructure, and comparison of different types of charging stations and related infrastructure. This will include a review of the existing electrical system at buildings/locations where charging stations could be installed, a review of codes/standards and permit requirements for the charging station(s), and a study of impacts that electric vehicle charging to the local WMLP distribution grid system A feasibility/market study of the types of electric vehicles most appropriate for use in Wrangell. Electric buses, trucks, regular-sized sedans, scooters, smaller golf-cart type vehicles will all be evaluated. Different business models, including an EV rental car pool, would be explored. Cost estimates for partially converting the city‟s vehicle fleet to EVs could also be prepared. Study of „smart grid‟ and demand-side management applications associated with electric vehicle battery charging in Wrangell, including interruptible loads for peak shaving and utilization of vehicle battery storage capacity for local grid stability. Construction Phase- After the pre-construction phases (described above) of the project are completed, the City & Borough of Wrangell will install an electric vehicle charging station at one of its City-owned buildings, and purchase one or more electric vehicles. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 11 of 15 7/21/2010 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. All of the land is owned by the City so there are no ownership or access 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 No permits are required for this feasibility study. 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 There are no environmental issues that apply to this project, as it is purely a feasibility study/conceptual design effort. For the next phase, with actual construction of one or more charging stations and deployment of electric vehicles from future disposal of used electric vehicle batteries. The only aesthetic impact is the charging stations, which are visually low impact. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: Total anticipated project cost, and cost for this phase Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 12 of 15 7/21/2010 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 A grant in the amount of $112,500 is being requested, with $12,500 provided as match by the City and Borough of Wrangell (total project cost of $125,000). This amount is broken down as follows: Reconnaissance, Feasibility, Design and Permitting Phases - $49,500 Construction Phase- $75,500 (including $40,000 for a purchase of an electric vehicle) 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.) No operation and maintenance costs are expected for this phased of the project, which is a conceptual design/feasibility study. The operation and maintenance costs of an electric vehicle charging station installed on municipal government property would be minimal and will be borne by the City. Normal maintenance on the charging station is minimal and would be funded from savings of using electricity vs. gasoline/diesel fuel for City-owned vehicles. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: Identification of potential power buyer(s)/customer(s) Potential power purchase/sales price - at a minimum indicate a price range Proposed rate of return from grant-funded project The City and Borough of Wrangell (City), through Wrangell Municipal Light and Power (WMLP), has established a rate of $0.08/kWh for all electric heating and hot water applications, and there is a possibility of an interruptible rate of $0.05/kWh from the Southeast Alaska Power Agency (SEAPA). This special rate is due to the hydroelectric facilities of the SEAPA system spilling excess water (water not used in power production). 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 provided as Attachment F. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 13 of 15 7/21/2010 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 Southeast Alaska offers a prime opportunity for hydro-electricity to be used for electric vehicle charging, as well as for testing, demonstration, and evaluation of demand-side management strategies involving electric vehicle charging stations. Southeast Alaska utilities could test new smart grid technology for handling interruptible loads, or discretionary loads, with the possibility of discounted rates of electricity for consumers charging electric vehicles. This project would initiate a program of localized testing and evaluation of electric vehicles in an Alaska community. Wrangell is the perfect Alaska site for this testing due to the following attributes, because the community has: 1. Clean, hydro-generated electricity that is relatively inexpensive 2. A short, „islanded‟ road network, with the maximum driving distance (about 30 miles) well under the typical range of electric vehicle batteries 3. The community has recent experience with new installations of interruptible, „surplus‟ electric load applications of electric heating for public buildings 4. A relatively mild winter climate (better for battery performance) 5. Barge transportation costs to the lower 48 states and British Columbia are relatively inexpensive. Assuming a rate of $0.08/kWh for electricity used for vehicle battery charging, and a vehicle efficiency of 4 miles/kWh, the cost of using WMLP energy for an electric vehicle is estimated to be $0.02/mile. Assuming that the equivalent gasoline-powered vehicle has an average fuel economy of 30 miles/gallon, the gasoline/diesel fuel equivalent cost of $0.02/mile would be $0.60/gallon. Assuming an average gasoline/diesel fuel retail price in Wrangell of $4.00/gallon, electric vehicles would cut vehicle fuel equivalent cost by nearly 85% (from $0.13/mile to $0.02/mile). The estimated fuel displacement is 40 gallons of gasoline per 1000 vehicle-miles driven, or 80 gallons per year if the vehicle is driven in Wrangell 2,000 miles annually (assumption used in section above). The main public benefit of using electric vehicles would be reduced fuel costs for Wrangell drivers, and for the City & Borough of Wrangell‟s municipal vehicle fleet. Another benefit is reduced local air pollution from automobiles. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 14 of 15 7/21/2010 The introduction of electric vehicles to the City‟s vehicle fleet would reduce vehicle fuel cost for the City and WMLP, which would in turn lower the cost of government. By reducing the cost of government, the benefits to the community of Wrangell include the possibility of a reduction in sales taxes and an increase in funds available for increased infrastructure development. The lessons learned from the demonstration of electric vehicles, and related charging infrastructure, in Wrangell can be applicable to other communities in Southeast Alaska and other parts of the state. 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 No operation and maintenance costs are expected for the first phases of the project, which is a conceptual design/feasibility study. The operation and maintenance costs of an electric vehicle charging station installed on municipal government property would be minimal and will be borne by the City. Normal maintenance on the charging station is minimal and would be funded from savings of using electricity vs. diesel fuel for City-owned vehicles. Upon successful implementation, quarterly updates would be provided to the citizens of Wrangell, as well as any other parties, through the Borough Manager‟s Report which is published online and distributed every two weeks. 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. It is intended that the grant would begin in January of 2011. Extensive background work with WHPacific‟s renewable Energy Specialist, Mr. Brian Yanity, has been conducted at this point in order to arrive at application stage. The Borough Assembly discussed the potential use of electric vehicles as a portion of the city‟s fleet of vehicles and the potential benefits to the citizens of Wrangell if electric vehicle charging stations were created. The Assembly directed the Borough Manager to explore grant opportunities in this area. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 15 of 15 7/21/2010 SECTION 8– LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. The Borough Assembly adopted a Resolution in support of this grant application on September 14, 2010. 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 – GrantBudget3.doc As referenced earlier, a total of $112,500 of grant funding is being requested for this project. If successful, the grants funds will be combined with a local match of $12,500. Alaska Energy Authority Renewable Energy Fund Round IV Application Wrangell Electric Vehicle Study September 15, 2010 AEA Renewable Energy Fund Application Attachments Attachment A: Resumes Attachment B: Cost Worksheet Attachment C: Grant Budget Forms Attachment D: Letters of Support Attachment F: Authorized Signers Form Attachment G: Governing Body Resolution Attachment H: Certification Alaska Energy Authority Renewable Energy Fund Round IV Application Wrangell Electric Vehicle Study September 15, 2010 Attachment A: Resumes Alaska Energy Authority Renewable Energy Fund Round IV Application Wrangell Electric Vehicle Study September 15, 2010 Attachment B: Cost Worksheet Renewable Energy Fund Round 4 Project Cost/Benefit Worksheet RFA AEA11-005 Application Cost Worksheet Page 1 7-21-10 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Existing hydropower- excess capacity (13 MW summer, 9 MW winter) Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other 4 diesel generators (3 = 2mw, 1= 2.5 mw) ii. Rated capacity of generators/boilers/other See above iii. Generator/boilers/other type No boilers at this time iv. Age of generators/boilers/other Early 80’s for the 2 mw’s, late 70’s for 2.5 mw v. Efficiency of generators/boilers/other N/A b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor 183,650 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] Only used during outages and shutdown ii. Fuel usage Diesel [gal] 52,921 gal Other iii. Peak Load 6.2 mw iv. Average Load 4.0 mw v. Minimum Load 1.8 mw vi. Efficiency vii. Future trends Expecting 1- to 2% load increase per year d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] N/A ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 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 4 Project Cost/Benefit Worksheet RFA AEA11-005 Application Cost Worksheet Page 2 7-21-10 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] Existing hydropower from Southeast Alaska Power Agency (SEAPA) system- excess capacity (13 MW summer, 9 MW winter) b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 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 $75,500 b) Development cost $49,500 c) Annual O&M cost of new system d) Annual fuel cost 5. Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat iii. Transportation Estimated 40 gallons of gasoline or diesel, per 1000 vehicle-miles driven b) Current price of displaced fuel $4/gallon c) Other economic benefits d) Alaska public benefits Reduction in air pollution, fuel use 6. Power Purchase/Sales Price a) Price for power purchase/sale $0.08/kWh (WMLP rate) 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio unknown Payback (years) unknown Alaska Energy Authority Renewable Energy Fund Round IV Application Wrangell Electric Vehicle Study September 15, 2010 Attachment C: Grant Budget Forms Renewable Energy Fund Grant Round IV Grant Budget Form 9-13-2010 Wrangell Electric Vehicle and Charging Station Installation- Reconnaissance, Feasibility, Design and Permitting Phases 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 Project scoping and contractor solicitation 10/1/2011 $1,000 $0 $1,000 Detailed energy resource analysis 12/1/2011 $2,000 $0 $2,000 Identification of land and regulatory issues 12/1/2011 $2,000 $0 $2,000 Permitting and environmental analysis 12/1/2011 $1,500 $0 $1,500 Detailed analysis of existing and future energy costs and markets 12/1/2011 $5,000 $0 $5,000 Assessment of alternatives 12/1/2011 $10,000 $0 $10,000 Conceptual design analysis and cost estimate 3/1/2012 $11,500 $0 $11,500 Detailed economic and financial analysis 3/1/2012 $10,000 $0 $10,000 Conceptual business and operations plans 3/1/2012 $1,500 $0 $1,500 Final report and recommendations 3/1/2012 $5,000 $0 $5,000 TOTALS $49,500 $0 $49,500 Budget Categories: Direct Labor & Benefits $0 $0 $0 Travel & Per Diem $2,000 $0 $2,000 Equipment $0 $0 $0 Materials & Supplies $0 $0 $0 Contractual Services $47,500 $0 $47,500 Construction Services $0 $0 $0 Other $0 $0 $0 TOTALS $49,500 $0 $49,500 Renewable Energy Fund Grant Round IV Grant Budget Form 9-13-2010 Wrangell Electric Vehicle and Charging Station Installation- Construction Phase 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 Confirmation that all design and feasibility requirements are complete 4/1/2012 $1,000 $0 $1,000 Completion of bid documents 5/1/2012 $1,000 $1,000 $2,000 Contractor/vendor selection and award 6/1/2012 $1,000 $5,000 $6,000 Construction of charging station 8/31/2012 $15,000 $5,000 $20,000 Integration and testing 9/30/2012 $3,000 $0 $3,000 Electric vehicle procurement 8/31/2012 $40,000 $0 $40,000 Final Acceptance, Commissioning and Start-up 10/31/2012 $1,000 $1,000 $2,000 Operations Reporting 12/31/2012 $1,000 $500 $1,500 TOTALS $63,000 $12,500 $75,500 Budget Categories: Direct Labor & Benefits $0 $0 $0 Travel & Per Diem $5,000 $0 $5,000 Equipment $40,000 $5,000 $45,000 Materials & Supplies $5,000 $5,000 $10,000 Contractual Services $5,000 $1,000 $6,000 Construction Services $8,000 $1,500 $9,500 Other $0 $0 $0 TOTALS $63,000 $12,500 $75,500 Alaska Energy Authority Renewable Energy Fund Round IV Application Wrangell Electric Vehicle Study September 15, 2010 Attachment F: Authorized Signers Form Alaska Energy Authority Renewable Energy Fund Round IV Application Wrangell Electric Vehicle Study September 15, 2010 Attachment G: Governing Body Resolution Alaska Energy Authority Renewable Energy Fund Round IV Application Wrangell Electric Vehicle Study September 15, 2010 Attachment H: Certification