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Napaskiak Wind Power App
WIND, POWER, and HEAT RECOVERY (A Reconnaissance and Feasibility Study) Prepared by: The City of Napaskiak P. O. Box 6109 Napaskiak, Alaska 99559 For: Renewable Energy Fund Round IV Grant Application Contact: Carl Maxie (907) 727-7432 /so, ALASHKA Renewable Energy Fund Grant Application Round 1V SECTION 1 —APPLICANT INFORMATION Name (Name of utility, iPP, or government entity submitting proposal) City of Napaskiak-Napaskiak Electric Type of Entity: 2" 1 Class City Mailing Address P.O. Box 6109 Napaskiak, AK 99559-6109 Telephone Telephone 907-737-7626 907-737-76 1.1 APPLICANT POINT OF CONTACT Name Carl Maxie Mailing Address P.O. Box 6109 Napaskiak, AK 99559-6109 Telephone Telephone (907) 727-7432 1 (907) 727-7432 Mailing Address P.O. Box 6109 Napaskiak, AK 99559-6109 Telephone 907-737-76 Name Carl Maxie Telephone (907)727-7432 1.2 APPLICANT MINIMUM REQUIREMENTS Pleas check as appropriate If you .1c net to meet the Minimum applicant requtremants, your application wtli be rejec-ted 1 2 1 As are Applicant, we are (put an X In the appropnate box) An electric utility holding a certificate of public convenience and necessity under AS 42 05, or An independent power producer in accordance with?. AAC; 107 695 (a) (1), or X A Kcal government. or A governmental entity (which includes tribal councils and housing authorities), Yes 1 2 2 Attached to this apply-ation is formal approval and endorsement for its project by its board of directors, executive management, or ether 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 AEA11-005 Grant Application Page 2 of 18 7/21/2010 AZ=ALASKA Renewable Energy Fund _ "ENERGY AUTHORITY Grant Application Round IV SECTION 2 — PROJECT SUMMARY This is intended to be no more than a 1-2 page overview LVyourproject 2.1 Project Title — (Provide a 4 to 5 word title for your project) Wind, Power, and Heat Recovery (A Reconnaissance and Feasibility Study) 2.2 Project Location — Include the physfcal location of your project and names) of the community or communities that will benefit from your project The City of Napaskiak is located on the east bank of the Kuskokwim River, along the Napaskiak Slough, 7 miles southeast of Bethel. It lies at approximately 60.708060 North Latitude and - 161.766110 West Longitude. (Sec. 08, TOWN, R071 W, Seward Meridian.) The incorporated City of Napaskiak and its 435 residents will benefit from the outcome of this wind study. 60 .1 . ., ._A. Pupa mali14 AEA11-005 Grant Application Page 3 of 18 7/21/2010 /Z,Ilk. ALASHKA Renewable Energy Fund Grant Application Round IV 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type X I Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas X 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 Conceptual Design 2.4 PROJECT DESCRIPTION Provide a bnef one paragraph descnptron of your proposed project The City of Napaskiak requests funding for a wind study which includes an avian study and feasibility report as the first and second steps towards supplementing the high cost of diesel generators currently in use. These studies will satisfy both Phase I Reconnaissance and Phase II Feasibility components of the AEA's.basic outline of the Wind Resource Development Partnering Plan Procurement. The studies will result in a feasibility report on the benefits, costs, and guidelines for implementing the next three phases of a wind turbine system, both in terms of a stand-alone system operated independently by Napaskiak Electric Utility, and in the context of a possible sub -regional intertie. The feasibility study will include a Heat Recovery System that utilizes jacket water from the diesel generators and excess electricity from wind generated power. This project will solicit community participation from the beginning and will promote wind -diesel O&M training opportunities to appropriate candidates. 2.5 PROJECT BENEFIT Briefly discuss the frnanoral and public benefits that will res+alt from this prroj&ct, (such as radu'.ed fr,rel costs, lower energy costs, etc } This proposed Wind Study will provide the information the City of Napaskiak requires to carry out the next 3 phases of the desired Wind Turbine Project both successfully and according to AEA's recommended procedures. This study will lead to the village being able to operate and own a sustainable, green, and supplementary power system to offset the high cost of energy the village endures. Based on research done by AEA, Napaskiak's wind power potential is similar to surrounding communities (Bethel and Kasigluk) with existing wind power. The cost of power is generally 3 to 5 times higher for rural Alaskans. Napaskiak has been paying close to $4 per gallon of fuel since 2008. Rural fuel prices are extremely volatile and much higher rates have been seen in the past 5 years. The logistics of getting fuel to Napaskiak by barge and the large amount needed on an annual basis due to the long, dark winters is not only a cost issue but an AEA11-005 Grant Application Page 4 of 18 7/21/2010 ? ALAGY SHof Rl�`TM1 Renewable Energy Fund Grant Application Round IV environmental one. Napaskiak stands to dramatically decrease their carbon footprint by including wind power in their energy plan. Due to the high cost of fuel, Napaskiak qualifies for the Power Cost Equalization program. Adding Wind power will ultimately lessen the burden on this program for the State of Alaska. In addition to powering electricity, large amounts of diesel are also used for heat. The recovered heat system proposed for study shall consist of capturing the heat from the diesel engine jacket water and combining it with coincident thermal energy generation from excess wind energy so that the maximum amount of fuel savings can be achieved. Although wind energy is not the silver bullet for making residential electric rates drop significantly, the amount of fuel savings added by using coincidental heat to displace diesel makes for a more attractive economic scenario. 2.6 PROJECT BUDGET OVERVIEW Sneffil discuss the amount of funds needed the anticipated sources Of funds, and the nature and souf�.6 of other contributions to the project Napaskiak is requesting $171,275 in funds from AEA. Other contributions will include in kind efforts of Napaskiak administrative staff contributing time, transportation, and housing worth $9,550 to pursue this and future efforts for the next phases for a total project cost of $180,825. Napaskiak Incorporated has agreed to offer land for the wind study met tourer and for the future site of the wind turbines. Project Costs & Benefits (SummaW of total project costs including work to date and future cyst estimates to get to a fully cperatfonal pfojed) 2.7.4 Total Project Cost (Summary from Cost Worksheet $180,825 Studies including estimates through construction) $1.75M est. through construction 2.7.5 Estimates! Direct Financial Benefit (Savings) $NIA - Study 2.7.6 Other Public Benefit (If you can calculate the benefit in $ NIA- Study terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5.) AEA11-005 Grant Application Page 5 of 18 7/21/2010 /1Z ALASKA Renewable Energy Fund E' )ENERGYAUTHORMY Grant Application Round IV SECTION 3 — PROJECT MANAGEMENT PLAN Descnbe who mli be responsible for managing the project and provide a plan for suceersfully cornpleting the project within the scope, schedule and budget proposed in the app►catron. 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 Marsh Creek, LLC staff will administer and manage this project under contract to Napaskiak. Marsh Creek, LLC maintains routine communications with the City of Napaskiak on community development, especially- energy projects. This close contact and coordination will continue in this project. Upon receiving project funding, the Napaskiak Tribal Council will select and work with Marsh Creek as the design and construction management consultants to initiate, oversee, and complete the project. 3.2 Project Schedule Include a schedule for the proposed work that will he fun -led by this grant (You may include a chart or table attachment with a summary of dates below ) The City plans to begin work immediately upon receipt of funds. We intend to complete the project by the end of March 2013. See more detailed schedule below. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them The Milestones must also by Included on your budget worksheet to demonstrate how you propose to manage the project cash flow (See Section 2 of the RFA or the Budget Form ) Project Milestones Tasks Timeline Phase I. Reconnaissance yi Project Scoping and • Project Management 8/1 /11 to community • Establish avian monitoring needs for area as 10/31/11 Solicitation suggested by USFWS • MC Team will travel to community for site assessment and to visit the school to introduce the project to Staff/Students/Community and solicit participation i.e. Introduce Wind for Schools by coordinating with REAP/WiD .kC, provide information about training opportunities for wind -diesel system operations, and solicit volunteers for avian monitoring (this task v-ill be completed concurrently with the Preliminary Site Visit funded in the next milestone — no additional travel funding added for this milestone in budget) • Resource w Project Management 9/1/11 to Identification and • Preliminary site visit 10/31/12 Analysis o FAA ApEroval for met tower on selected site(s) AEA11-005 Grant Application Page 6 of 18 7/21/2010 s ALASM Renewable Energy Fund I # _1 ENERGY AUTHORITY Grant Application Round IV • Equipment purchase/shipping/ and installation • Determine point of contact and train local agents to change data cards and conduct avian observations • Gather wind resource data and avian observations • Land use, • Project Management 911111 tC permitting, and • Determine site ownership issues, if any 10/31/11 environmental • Contact agencies for preliminary approval: analysis SHPO, DOD, ACMP • Document, if any, community concerns with sight and sound at chosen location • Preliminary design • Project Management 10/1112 analysis and cost • Utilize Wind Resource Report to identify optimal to wind turbines and configuration — 4 types are 11/30/12 currently under consideration: Remanufactured Vestas V-27 North Wind 100 Nordtank 300kW Wind Micon M530-25OW • Cost of energy and • Project Management -TO/ 1 _/12 market analysis • Assess cost of energy- for current and predicted to usage 11/30/12 • Simple economic o Project Management 10/1112 analysis u Compare current vs. predicted price of energy t0 11/30/12 • Final report and • Project Management 11 /1 /12 recommendations . Prepare Wind Resource Report and Present to to School /Community along with options for 12/31 /12 development. Solicit input from community and interest in training for wind -diesel O&M Phase II. Feasibility • Project $coping and • Project Management 8/1/11 to community • Assess interest for advanced training in wind- 9/30/11 solicitation diesel O&M U Provide School information about vocational trainme opportunities in wind -diesel O&M =D Detailed energy • Project Management 8/1112 to resource analysis • Evaluate existing diesel power plant, electrical 12/31 /12 distribution system, and geotechnical data • Evaluate condition and acceptability of existing controls and switchgear for compatibility with a winds stem • Identification of t, Project Management 9/1 /11 t0 land and regulatory • Address site ownership and regulatory issues, if 10/31/11 issues any AEA11-005 Grant Application Page 7 of 18 7/21/2010 W _D ALASKA Renewable Energy Fund E_._j ENERGY AUTHORITY Grant Application Round IV • Permitting and • Project Management 9/1/11 to environmental • Contact USFV'S, F,�_k, DOD, .RCMP, and 12/31/12 analysis SHPO for approval of conceptual design • Assess and document any issues with wetlands or telecommunications, including mitigation efforts planned if necessary • Document community sentiment regarding visual or sound issues • Detailed analysis of • Project Management 11/1/12 existing and future • Review historical power plant and electrical to energy costs and consumption data 12/31/12 markets • Identify- building candidates for heat recovery n Identify planned or proposed future growth load for community • Assessment of n Project Management 11/1/12 Alternatives • Compare productivity of different wind turbines to and configurations for local wind regime. 12/31/12 Consider penetration level benefits vs complexity. • Compare and contrast complicity of equipment and wind penetration systems with capacity and interest of community to operate and maintain • Provide community with clear picture of options available to them for wind -diesel power production — solicit input into decision • Conceptual design • Project Management 11/1/12 analysis and cost • Include design of heat recovery system utilizing to estimate engine jacket heat combined with excess 12/31/12 electricity from wind energy in -wind-diesel power plant design • Detailed economic • Project Management 11/1/12 and financial analysis • Calculate rate for electricity- that displaces diesel to through the heat recovery system 12/31/12 • Conceptual business • Project Management 1 l /1 / 22 and operations plans • Business and Operations Plan developed for to wind -diesel power plant w/heat recovery system 12/31/12 with participation from community. Meet with udlity board to discuss and formalize. Final report and • Project Management 11/1/12 recommendations • Community Meeting to Present Plan and to Promote Training Opportunities 3130/13 • Final Grant Report to AEA AEA11-005 Grant Application Page 8 of 18 7/21/2010 a ALASKA Renewable Energy Fund ENERGYAUTHORITY Grant Application Round IV 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 c ontra its and the selection process you may use for major equipment purchases or contracts Include brief resumes and references for known, key personnel, contractors. and suppliers as an attachment to your application The contractor for this project, the Wind, Power, and Heat Reconnaissance and Feasibility Study will be MarshCreek LLC, with a subcontractor for the environmental consulting. Resumes and Company profiles are attached. 3.6 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status Carl Maxie, the Napaskiak Electric Manager will serve as the point of contact and will be intimately involved in all aspects of the wind study, as well as fixture phases of this project, including post construction operation and management. Mr. Maxie has worked vwith Marsh Creek LLC on the existing system and has a good rapport with Marsh Creek. Marsh Creek LLC will be the project liaison and contact among all parties (City, general contractor, vendors, and the AEA). Marsh Creek LLC will coordinate all project team communications, meetings, and disseminate information on a routine basis. The coordinator will be responsible for all periodic progress reports and other information requests to the AEA. Marsh Creek will work closely with the selected contractors and keep the AEA informed of progress by regular e-mail updates as components of the project are completed. The contractor's interim and final reports will be submitted promptly when completed. Close liaison will be maintained with the contractors throughout the project. Issues to be tracked include scope clarifications, progress relative to budget, schedule, data recovery, and health and safety. These will include the project matching funds. 3.6 Project Risk Discuss potential problems and how you would address them There is the risk that the wind study will show that the cost -benefit ratio is not more than 1.0. By following the approved AEA phases, and awarded funding in increments based on milestones, Napaskiak reduces the risk of overinvesting if the wind study should prove that the wind resource is not sufficient to warrant further phases. However, all preliminary data and research suggest that Napaskiak is indeed a good candidate for a wind supplemented power utility. In addition, by analyzing possible sub -regional approached to renewable energy development prospects; feasibility may be improved when economics of scale for installation, operations and maintenance are factored in. There are potential problems in project logistics and construction in remote areas such as Napaskiak. Adverse weather conditions can also cause project delays. Marsh Creek and Napaskiak staff are experienced in setting up and managing community development projects. Similarly, local labor has much experience, savvy, and know-how to get the job done in adverse conditions such as poor weather. Good team planning and reliance on local knowledge about community conditions help reduce the risk in development projects in remote areas. AEA11-005 Grant Application Page 9 of 18 7/21/2010 /,OL ALASKA Renewable Energy Fund Grant Application Round IV The US Fish and Wildlife Service was consulted about avian and environmental concerns. Endangered waterfowl use the area so avian studies and careful placement of the met tower (and later the turbines) will be necessary. Transmission lines may pose a threat to birds, and the avian study will consider that and make recommendations if the cables should be buried or not. SECTION 4 — PROJECT DESCRIPTION AND TASKS Tell us what the project is and how you will meet tree requirements outlined ill 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 alt"dy 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 extentlamount 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 Napaskiak is strongly influenced by storms and patterns in the Bering Sea and also by inland continental weather. Average annual precipitation is 16 inches, Aith 50 inches of snowfall. Summer temperatures range from 42 to 62, winter temperatures are -2 to 19. The average wind speed in Napaskiak is 7.5 mph and has been identified as Class 5 winds. The Alaska Energy Plan says "Due to the high cost of diesel -fired electrical generation in rural Alaska, wind turbines may be economical in some rural Alaskan communities with a wind power class of 3 or above Location of Napaskiak is seven miles southwest of Bethel, Alaska Image extracted from the Alsaka High Resolution Wind Map - = 7+ e d8 . � .- •TLC �� .�i M I �: e.. a O� o APA11-005 Grant Application Page 10 of 18 7/21/2010 ALASM 1 ENERGY AUTHORITY Renewable Energy Fund Grant Application Round IV .• 2 t- 1- 1+ ioo -z.2 oo MO - 500 6 600 - 800 310-400 7 .800 400 - 500 SOG-600 The 2009 Alaska Energy Model Community Report evaluated Napaskiak with the potential wind resource below. A!te; na _i+se Ewe r ' R.-scurces Wind Diesel ft)rid ::fi`_...'zSt 524:�'t;l 63.4,27 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 Napaskiak is well aware that a wind -diesel power system is only as good as the diesel generator it is combined with. The new generators just installed will work very well with the fluctuating power produced by a wind turbine. 4.2.2 Existing Energy Resources Used Briefl, 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 In 2009 Napaskiak used 778,058 gallons of fuel. Wind turbines at Napaskiak have the potential of sm ing 32,000 gallons of fuel annually. This number was arrived at by dividing AEA projected savings by $5.00 per gallon for fuel. The impact of not using as much fuel goes beyond significant savings by reducing the carbon foot print of the village. 4.2.3 Existing Energy Market Discuss existing energy use and its market Discuss Impacts your project may have on energy customers AEA11-005 Grant Application Page 11 of 18 7/21/2010 Renewable Energy Fund Grant Application Round IV The Alaska Energy Plan (AEP) states that to "maximize the economic value of wind resource development, the recommended program focuses on systematically reducing the uncertainty associated with the initial market value estimates". Napaskiak will impact its customers positively by assuring the benefit to cost ratio is either an attractive or potentially attractive wind source. Per the AEP, "The National Wind Coordinating Council recommends that construction funds should not be committed until a final project feasibility assessment is made based upon detailed site specific reconnaissance and at least two to three years of detailed local wind data at the proposed Site". It is hopeful that with AEA's previous research and approval this wind study can be conducted in one year. Napaskiak will commit to the approved phases of effort, such that the uncertainty of the future lAind turbine project will be greatly reduced over time. Napaskiak's energy use for 2009: kwH Generated: 826,308 kwH Sold: 765,744 Gallons Diesel Consumed: 78,058 The average cost of fuel for 2008-2009 was $4 per gallon, but has been as high as $5 per gallon. The existing price per kwH is 0.73 cents. According to the AEP, the anticipated cost of a wind - diesel system would be 0.53 cents per kwH. This project will impact the energy customers in substantial saxings and will reduce the need for PCE funds from the State of Alaska for residential ratepayers. 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 The City of Napaskiak will use the Wind Study to determine the appropriate system and system design. MarshCreek LLC has extensive experience with system design and has offered four different turbines systems as a possibility- for Napaskiak. • Remanufactured Vestas V-27 • NorthWind 100 AEA11-005 Grant Application Page 12 of 18 7/21/2010 `�- ', ALASHKA ENERGY AUT• Nordtank 300kW Wind • Micon M530-25OW Renewable Energy Fund Grant Application Round IV 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 Met tower will be erected on the potential wind turbine site as determined by the reconnaissance phase of this study. A land use resolution was written and signed at a 2008 community- hall meeting in Napaskiak. Napaskiak Incorporated has agreed to use suitable corporation land for the Met Tower and future wind turbines location. The community has selected a site within the recommended one mile radius from the existing power plant. The site is at a higher elevation, out of FAA range and on good solid ground above the flood plain. At this time, there are no 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 tirneline • Identify and discussion of potential barriers A permitting planwill be addressed concurrently and as a result of the Wind Study. The City of Napaskiak will follow the Study as it progresses so that any permitting issues can be pursued in a timely fashion, so as not to delay further development of the project. AEA11-005 Grant Application Page 13 of 18 7/21/2010 Renewable Energy Fund ALASKA r ENERGY AUTHORITY Grant Application Round IV 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 constiaints • Telecommunications interference • Aviation considerations Visual. aesthetics impacts • Identify and discuss other potential barriers Environmental assessment and permitting on all of the above will be addressed in the wind study. Napaskiak has been adN ised that wind turbines can be an endangerment to birds, and may require extensive and often expensive studies. The Wind Study will include a subcontract for environmental consulting. The community local knowledge base feels that the site location they have chosen is in the best interest of the environment and should have no adverse impacts on any of the above environmental considerations. Napaskiak used the Best Management Practices described by the"Guidelines for Building and Operating Wind Energy Facilities in Alaska" when they chose the site. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary accoiding to the phase of funding requested and any previous work the applicant may have done on the project Applicants must reference the source of their cost data For example Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer's estimates 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project Cost information should include the following • Total anticipated project cost, and cost for this phase • Requested grant funding Applicant matching funds — loans, capital contributions, in -kind • Identification of ether funding sources • Projected capital cost of proposed renewable energy system • Projected development cast of pro osed renewable energy system The Wind Study will need to be completed before cost and revenues can be fully developed. However, the AEA Energy Model Community preliminary study has estimated the Wind Farm capital costs at Napaskiak to be $2,438,000. Overall annual savings are predicted at $163,127. This study phase will cost $180,825. Detailed project development costs will be developed by MarshCreek, LLC as a result of the feasibility study. Napaskiak expects to follow the Alaska Energy Plan's approach to reducing Project Cost Capitol based on the benefit to cost outcome AEA11-005 Grant Application Page 14 of 18 7/21/2010 /*r. --') it ALASNKA Renewable Energy Fund Grant Application Round IV derived by the energy plan highlighted in yellow. Table 3-2 Policy Options for Rum] Energy Ploa— Economic; MensuremeM Cansidetations RaIJA! * C OSt W Capital Prr'-Ida,*.f,lad tsuurce, etel,waiieia a.-pot4- lrko.: Alternatly$s Eari0t� Costs Rlskv to use: e L.': �'.r "te.:'.2 ,c •,* �r:rae .�::ar�,x +-*r us .,�s O+pL. tol.Aps V',•! a.,tr-c... �. :;k g: x*�Irrryt:•�. r:i�A�,Fvrri d.�2tL:J s�. L'�S',e•8lr is' =£`. .,n �I�re_'F = Y��':ikr,l. It ii31ke r t..yehi1 ^?'.I !i �t9`.. it 9r;:'r .K•�?ei(, I_'.ri ., ice.: 1. �'r.•��•-.,Lar..� ilr;l•5r.; Fr..aRvra •.utur�„q:r�t r�Jl.:-s.., h*..r �+:. -` s �'� I 6 h YTldril?;a.: I�K;k, u , nnan.:,:y,.•. _.�I,+i,_, aF; c' a -,. Q r'Oe = F"a tr-zx-, +h n s.' :gala rviq tr.rrr IncaWrate qualitative risk&,t%0icftV +i,mGexPI.CItflBktetlEoffs Repleesrela4-rafsk 0-Whitnrerelauverisk assessment metrics essew-merit ma • be. alas -d Table Extracted From the Alaska Energy Plan (Chapter 3, Page 8) Napaskiak benefits from having access to both tribal as well as municipal grant funds. The City, Tribe and Village Corporation operate under a United Council to coordinate development and collaborate on funding of local infrastructure projects. Native Energy has expressed interest in purchasing green tags from small rural renewable projects. Although not a large sum of money ($2.501MW generated annually is the latest quote), it will contribute in no small part to the cost of maintenance. 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 finds however grantees are required to meet ongoing reporting roquirements for the purpose of reporting impacts of projects nn the communities they serve) In 2009 Napaskiak Power Plant paid $136,576 for O&M. The city is barely able to charge an energy rate that will cover the O & M costs because the customers can not afford energy at that cost. A more accurate estimate of Wind -Diesel O & M costs will be developed by the Wind Study. Combining wind into the diesel system could allow the Utility to keep energy pricing affordable to residents without losing money on its O & M costs. 4.4.3 Power Purchase/Sale The power purchase/sale Information 6hould include the following • Identification of potential power buyer(s)lcustomer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant. -funded project NA- This is a Reconnaissance and Feasibility Study 4.4.4 Project Cost Worksheet Complete the cast worksheet form which provides summary information that will be considered in evaluating the project AEA11-005 Grant Application Page 15 of 18 7/21/2010 !� ALASKA Renewable Energy Fund Grant Application Round IV Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. 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 prated • Anticipated annual revenue (based on i a a Proposed Power Purchase Agreement price RCA tariff, or cost based rate) • Potential additions! annual incentives (i a tax credits) • Potential additional annual revenue streams (i a 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 protect According to the AEP study, The City of Napaskiak has the potential to save $163,127, or 32,000 gallons in displaced fuel annually. Native Energy has expressed interest in providing financial support in the form of Renewable Energy Credits or Green Tag Sales following installation of the wind turbine(s). The actual value is variable, but around $2.50/MW generated annually at this time. But it could certainly gain in value if a carbon tax is passed by Congress. This value can be more accurately assessed as the project nears construction. On a level of personal commitment and action the people of Napaskiak have collectively decided they want to become less dependent on the variable price of diesel fuel, lessen the Environmental risks of transport up their River and on site storage hazards by requiring less diesel fuel to power their community. SECTION 6— SUSTAINABItITY Discuss your plan for operating the completed protect so that it will be sustainable include at d minimum • Proposed business structure(s) and concepts that may be considered • How you propose to finarioe the maintenance and operations for the life cf 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 Napaskiak Electric Utility currently operates the power plant and electrical distribution system in Napaskiak. The Utility will incorporate an O & M surcharge into its rate structure to recoup the costs of operating and maintaining the renewable energy infrastructure. Actual O & M AEA11-005 Grant Application Page 16 of 18 7/21/2010 I ALASKA Renewable Energy Fund 0---ENERGYAUTHORITY Grant Application Round IV costs will be determined once specifications are developed for the wind turbines to be installed as a result of this study. One vital key to a successful utility is well trained operators who feel appreciated in their job and understand and comply with maintenance schedules.. Adequate training and support will be budgeted during additional phases, but the seeds will be planted in young people and the community as a whole during this project. We intend to coordinate 3 public meetings that originate from the school. We intend to introduce Wind for Schools in our community for the young people. And we intend to encourage our power plant operator to take advantage of every opportunity to advance learn more about wind -diesel power plants. Selection of the wind turbine system will take into account surrounding communities systems already in existence. This will positively contribute to the wind market penetration to support trained personnel. We will work with our neighbors to help each other. 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 protect 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 Napaskiak has demonstrated its managerial and financial responsibility. The City of Napaskiak recently took over management of the utilities and met all RUBA essential management indicators. The City has proven itself a realistic and reliable self governing entity. The diesel power system has recently been upgraded in anticipation of integrating wind into the power system. The City of Napaskiak received a grant from the AEA to fund this new diesel system. SECTION 8— LOCAL SUPORT Discuss wfiat local support or possible opposition there may be regarding your prole A Include letters of support from the community that would benefit from this project The City of Napaskiak came together three years ago in pursuit of integrating wind power into their existing diesel system. There has been no opposition to this project. The community also supported the upgrade of the diesel plant in 2008 funded by an AEA grant. See attached letters of support. SECTION 9 — GRANT BUDGET Tell us how niuch you want rr3 grant funds Include any investrrtents to date and funding sources. how much is being requested to grant funds, and additional Investments you wilt make as ar applicant Include an e.ghrnate of budget casts fy mile: tones asing the farm -- Grantftdget3 d6c AEA11-005 Grant Application Page 17 of 18 7/21/2010 RECEIVED 09/15/2010 13:32 9072495532 UMS Sep 15 2010 1r33PM NFIPRSKIFIK UTILITY 19077377808 p.2 ALJ�§M Renewable Energy Fund IMMY OmniAppllation Round IV The eXpeCted WSt of the teasiblllty study Is $180,825. The City of Napasklak-Napaskisk i Electric Utility respootfUlly esks AEA to fund 1171,27E of the,projept The City of I!�apeslu¢k da o■ra+ : w,ure not have extra funds. for a cash contribution, but we Wit commit to contributing staff time and p other in -kind oontr[butions of housing, equipment, end local transportation worth so'6 . The Grant Budget Form Is attached. SECTION 9 ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YCKJR APPLICATION A. Contact Information, mumes of Applicant's PrOjeCt Slaelaper, key staff, partners, cormultents, and supplier* per application form ascdon 3.1 and 3.4, a. Cost Workaheet per application fortn Section 4.4.4. C. Grant Budget Fomt per aAppilcation form Section 9. 0. Letters demonetrating local support par application form Section 8. E. An sisotronlo version of the entire appileotion on CD per RFA Section I.G. F. Authorized Signers Form. 0. GovBminQ Body Rmolutlon or other formal action taken by the applicant'! governing body or management per RFA Section 1.4 that: Commits the organisation 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 grarif: Provides~ as point of contact to represent the applicant for purposes of this application. Certifies the applicant Is In compliance with applicable federal, state, and local, laws Including existing credit and federal tax obligntler s. H. CERTIFICATION The tlndamigned certifies that this application for a renewable energy grant Is truthful and correct, and that the applicant Is In compiionne with, and will continue to comply with, all federal and *tote law* Including sxis5ng credit and federal tax obllgatiorrs. Print Nerve I ' 1 A�x , e_ S� , sigasturo nde n oetrt AIFAt4-005Qm ntAP01caft Page 1eat1g 7MI2010 Ir ALASKA Renewable Energy Fund Round 4 ME lENERGYAUTHORITY project CosVBenefit Worksheet 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 _Estimated to be Class 4 or 5 Wind Resource Unit depends on project type (e g w�lindsp, hydropower output, biomasss fuel) 2, Existing Energy Generation and Usage a) Basic configuration (rf system is part of ft Rallbelf grid, leave this section blank3 i Number of generatorwboiiers/other 3 Diesel Generators ii Ratea capacity of gerteratoisfhoilersfother #1 John Deere 230 kW #2 John Deere 117 kW #3 John Deere 250 kW iii Gerteratorftilerstother type None iv Age of generators/boilers/other #1 24913 hrs_ #2 305 firs. #3 3555 hrs. v Effcancy ofgenera, oisiboilers±oiher 10.52 kWh/gal. b) Annual O&M cost (6 system is part of the Railbelt grid, leave this section blank) i Annual O&M cost for labor $136,576 (2009) ii Annual O&M cost for non4aber $75,409 (2009) c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Radbelt grid, leave this section blank) i Electricity ]l►.Wh] 826,308.(2009) Ir Fite[ usage - '- Diesel [gal] 78,058 (2009) (N;i.er iti Peak Load 203 kW iv leverage Load 91 kW v Minimum Lead vi Efficiency 10.52% di vii Future trends Annual heating fuel usage (fill in as applicable) i Diesel [gal or MMBWI Est. 88,366 gallons/year ii. Electricity [mi] ili Propane [gal ur MMBtu) .iv. Coal [tons or (AMBtu] 1 The Railbelt grid connects all custornars of Chug,-.ch Electric Association, Homer Electric Association, Golden '/allai*! :lectrlc Association, the City of Seward Electric Department, Matanuska Electric Association and Archorage rv,unicipal Light and ?ewer. RFA AEA11-005 Application Cost Worksheet Page 1 7-21-10 ALASKA Renewable Energy Fund Round 4 is =' ENERGY AUTHORITY project Cost/Benefit Worksheet r Wood Icores. green toms. dry tons] %ri Other I Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity NA Reconnaissance and Feasibility Study (Wind, Hydro, Ekomass, other) [kW or MMStuft) b) Proposed annual electricity or heat production (fill rn as applicable) i Electricity [k'Nh] ii Heat [MMBtu] c) Proposed annual fuel usage (M in as applicable) i Propane [gal or WSW] ii Coal [toms or MMBtu] is Ward [cords, green tons, dry tons] iv Other 4. Project Cost a) Total capital ast of new system b) Developmerit cost c) Annual O&M cost of new system d) Annual fuel cost 5. Project Benefits NA Reconnaissance and Feasibility Study a) Amount of fuel displaced for i Electricity NA Reconnaissance and Feasibility Study ii. Heat iii Transportation b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits 6. Power Purchase/Sales Price Sale of green tags if project is constructed. a) Pnce for power purchase/sale NA Reconnaissance and Feasibility Study 7, Project Analysis al Basic Economic Analysis RFA AEA11-005 Application Cost Worksheet Page 2 7-21-10 ALASKA Renewable Energy Fund Round 4 ENERGYAuniORlrY project Cost[Benefit Worksheet Protect beneWcost rato NA Reconnaissance and Feasibility Study Payback (years) RFA AE411-005 Application Cost Worksheet Page 3 7-21_10 m ca ro 0 ro Q Q D 0 n 0 9 m -q � m cn n � r- � M ^' m ' ? m r _v C y ro n w P D m m w m p c -a Cr,.�. 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CL ,i 7 N o 'C F 3 m y y' ani 0 CD .� m m y' ! w � � w. o OCD N GAS c�a O N a Piw [D O O CD 0 O ' fA fA � 69 6w i9 I 9 4A A V fA fty C7� 1�9 A 69 fA N fA-Gy W CD N .- T i O i O N 0 a $ N �' Ch �' N s 0 0 0 N 0 CD Q 0 0 o c W cn CD CD 0 a , W I_ T �• 469 N 4A fA 69 fA fA 4A cN 40 N fA N $9 -1 4fl a fA O 69 O 6fl O y, O fA N 69 O 64 p fA a •.,•,•. •....• �...�• Ci US O O N O O O O a (D w zr Q• 7C tti 13 ID 3 7 a ion fA 40 69 EA cm 9 69 U9 � � e 69 % - � � N fA CA•,• ••�_.• . . 7 -CA -co0 -coo cm C N o CA 0 En O O O ccn .� 7 3 0 CDa O' p O O 0 a a O O O 01 Q t � 3 H 2 r2 3 V N O -� RECEIVED 09/13/2010 10:39 Seep 13 2010 10: 40FIM IYFIPFISK I FIK UTILITY 9072485532 18077377989, p.3 RECEIVED 09/13/2010 10:39 9072485532 UMS Sep 13 2010 10.40AM NAPASKIAK UTILITY 18077377888 p,4 RECEIVED 09/13/2010 10:35 sep IJ EUIU 1U:UUHM nHNHUKIHK UilLllY 9072485522 UMS P , ; j RECEIVED 09/13/2010 10!39 90724e5532 0Ag Sep 13 2010 10:40AM MAPASKIAK UTILITY 19077377909 P.5 RECEIVED 09/13/2010 10:39 9072485532 UMS Sep 13 2010 10:40AM NF1PRSKIFlK UTILITY 19077377989 p,g RECEIVED 09/13/2010 10:39 9072485532 UmS Sep 13 2010 10:41RM WRPRSKIFiK UTILITY 19077377989 p.7 if �a ebto -ccaffid that Fr i 1P. louclail JR 9 totglt tb tie . Em PE --&=ZoX _ _ Incirm in aucacbmt bid) requtremt of par nt of ebutafton arch Old? 3mftmtnt mob glao'ba ftefiml IrectOcat ower ob fl the fore swArbeb Wo rtifitate dig completing 273 dock bmrg of infcxution ad fg quaumb for emosymm 40 i eR i i 224a bad of Xquember,200a d�.4M#IIdM meet ult A Ip r� x : S L yt AURllnal WU6n A C&br -AMW RECEIVED 09/13/2010 10:39 9072485532 LHS Sep 13 2010 10. 41RM NAPFiSKIFIK UTILITY _ 19077377983 p, 8 ��. CAlw � ' i 4 Vol e K, Mbiff certifier Oat Peter P. Williams, Jr. fts XOMIAdeb 65�ourff in rijE at the 2USM Vocaftwd gatuicai Vda attb it tberdar abwbtb *0 errtcf#catt of Azt, t t c n b a u re ibcn 0 19th bap at Mavrmhgr 2004 oof rote91e�1 gconual am Mtrcttas RECEIVED 09/14/2810 11:07 Sep 14 2010 1140SRM KRPRSKISK UTILITY 9072485532 UM5 18077377989 P.2 Oi-11-io WHO From- 11?71"111 i'-132 P.00II001 F-168 Pta firm MIK � ale am@ W7Wi1a zsaE40lzANDuM To; Wham it May C40M sa Date: Seatem i Frams lrhi]!ip Niol�olai 7r„ attar Re: Wind Gw aration i ass waiting to yaa t'!w Nepaskiak hN. yore, We are a fbr Mat state ab&tm+ed tskrporatioa Md. we ]Maui► ft hand the devdeta ft tam of coat of eaer$,y in NVAddek cod bur rcgiaa, POd dw=d ibrp Wuohq maV froea fang Awls has always bee a major plkvw in this sge of comely and we am not be without NNW to praarve our eubaia*m catches in our ors and alaftity in our bamm and b=Wonw Me demd ofbigh east of &d =sWq to high coat of eturgy for the aaoamuer and ftrd re lim ti»g the 0011MM apending, Ttda idea of displacing diaaal tire] wish rind rtorattn for enbrgy producliaa wixi 1 ' the NST afFvdudin vowar and errrpower Ow iooal people with eoonawk davdQpaunt aApan WWdeL Naptald* has mad nw wind or we have um with aurwbd VneradM of our owtr on & am R& seat at =afore, The NapmdWo& Covereaioa !°u11y anpporta the Naparldak Uti!'sty'g effom ire wind McOM iaaanee and study for l )mar. WO ab th* COWation and land Owmas alas 40mva the land toe for wind study tawera and/or wind X=eradon tbvlras as nW happen M dW future, please Goa= myself At It 40" r6fhMcp addMa or phone amber 737-7413 for any quesdonL RECEIVED 09/13/2010 10:35 9072485532 UMS Sep 13 2010 10:36FIM NFIPFISKIFIK UTILITY 18077377988 p.2 RESOLUTION #09-12 CITE' OF NAPAMAK GRANT APPLICATION FOR WIND RECONNAISSANCE STUDY WHEREAS, the City of NapaslCU is a City incorporated under the Iaws of the --State of Alaska sma it the duiy parihnri'ed governing entity to conduct business on behalf of the grillage, and WHWAS, the Napaskiak Electric Utility is owned and managed by the City ofNapaskiak, and WHEMS, our community has•experienced a critical rise in energy costs, and WHERF.A,S, energy costs contribute significantly to the cost of living in our village, and WHEREAS, if we find methods to reduced the cost of energy, the cost of living our village will decrdase, thereby reducing the number of people moving from our community, and WHEREAS, wind energy has the potential to reduce energy costs and the cost of living for our reside==, NCW, THMFORE, DE IT RESOLVED that the City of Napaskiak will submit s grant application for a Wind Reco=aissanec Study under Round IV of the Renewable Energy Fund request for proposal process. Adopted on this day September 10 , 2010, with a vote of 4 yes na abstention. ATTEST: re JosevhMayor City ofNapaskiak Date Sep 15 2010 2:05PK NAPASKIRK UTILITY 18077377988 p.2 Grant Documents Authorized Signers Please clearly print or typo all seotions of this form. Community/Grantee Name: City of Napasklak Regular Election is held: Date:9/1 5f10 Na ask[ak Authorized Grant Signer(o): Printed Name Title Term Signature Carl Maxie Manager, City Owned Utility, NA I authorise the above person(s) to sign Grant Documents: (Highest ranking organ ization/communitylmunicipal official) Printed Name a Tithe iMayor Term Signature Joseph Bavilla Andrew &in-v,« Niffir 3 yrs. AZ.0 Grantee Contact Information: Mailing Address: PO Box 8078 Napaskisk, Ali 99559 Prone Number: 907-737-7432 Fax Number: 907-737-7989 E-mail Address: CarUmaxie@ya3ihoo.com Federal Tax ID P: 92-0070219 Please submit an updated form whenever there Is a change to the above information. Please return the original completed form to: Alaska Energy Authority 813 W. Northern Lights Blvd. a:Vocuments and WingsAdminlaWorlocal Saftingerromperary Internet Flies\Ccntent.IE5\5W5i7T74\Grant Autharizec 5igner54[1].doe AdLMKA ENERGY AUTHORITY