Loading...
HomeMy WebLinkAboutKoliiganek Round iV Grant Application Renewable Energy Fund Round IV Grant Application AEA 11-005 Application Page 1 of 19 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 19 7/21/2010 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) New Koliganek Village Council Type of Entity: Tribal Council Mailing Address PO Box 5057 Koliganek, AK 99576 Physical Address Telephone (907) 596-3519 Fax (907) 596-3462 Email newkgkvc@hotmail.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Herman Nelson, Str. Title New Koliganek Village Council Mailing Address PO Box 5057 Koliganek, AK 99576 Telephone 907) 596-3519 Fax (907) 596-3462 Email newkgkvc@hotmail.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 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. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 3 of 19 7/21/2010 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 4 of 19 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) Koliganek Wind and Heat Recovery 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. Koliganek is located on the left bank of the Nushagak River and lies 65 miles northeast of Dillingham. The community lies at approximately 59.728610° North Latitude and -157.284440° West Longitude. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type X 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) 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. The New Koliganek Village Council respectfully requests project funding for a Wind and Heat Recovery Feasibility Study. Analysis of the raw meteorological data by V3 Energy, LLC indicate a Class 4 wind regime that and merits investigation. The project will result in a report of the technical, economic, financial and operational viability installing a wind-diesel system for electric distribution and heat recovery in the village of Koliganek. The grant will be managed by the New Koliganek Village Council. Marsh Creek Energy Systems has been selected to carry out the technical, analytical and reports tasks of the project. The Bristol Bay Native Association (BBNA) and Marsh Creek will also be available to provide support, as needed, to the Project Manager and Koliganek Tribal Administrator in the preparation of financial reports stipulated in the grant. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 5 of 19 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 primary public benefit of the project will be the critical information necessary to make an informed decision on whether or not to move forward with design, permitting, construction and operation of a wind-diesel system for electric distribution and heat recovery. In broad terms, the energy market for Koliganek has been unstable because of its sole dependence on the price of fuel and the components of that price: crude oil, refinement, retail, tax, transportation and storage. Fuel delivery windows to Koliganek are narrow and often complicated by climate conditions (low water levels and ice). It is believed that the use of an available local, renewable resource such as wind would offset the fuel cost component of the electric rate providing for more price stability, reducing the rate for the end-user and the amount of diesel required to power the generator. The use of excess wind energy to directly replace fuel for heating may also be a viable application. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The total estimated amount of funds needed is $105,050. The figure includes direct labor, benefits, travel, per diem, contractual services and other expenses as defined by the budget categories of the Grant Budget Form. 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 $105,050 2.7.2 Other Funds to be provided (Project match) $7, 000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $112,050 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) To be determined 2.7.5 Estimated Direct Financial Benefit (Savings) To be determined 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.) Undetermined at this time. 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. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 6 of 19 7/21/2010 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. The project will be managed by the New Koliganek Village Council with progress reports and assistance, as needed, provided by Marsh Creek Energy Systems and Bristol Bay Native Association. The Project Manager will be Herman Nelson, Sr., President of the New Koliganek Village Council. Mary Lou Nelson, Administrator of the New Koliganek Village Council. responsible for grant administration in compliance with grant reporting requirements including the documentation of in kind services. Marsh Creek Energy Systems has been selected as the contractor for performance of all work described in Section 3.3 – Project Milestones. The work will be performed in close consultation and guidance from the Project Manager. This will also include bi-weekly reports on the status of key milestones, problems encountered, if any, and recommended solutions. John Lyons of Marsh Creek will serve as the Project Engineer and will oversee all work performed by Marsh Creek. 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.) Reference Attachment - Koliganek Feasibility Study Schedule. 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.) PROJECT SCOPING Task 1 - Complete Site Visit and Community Meetings A site visit to the village of Koliganek and meetings with the New Koliganek Village Council and the community will be held to answer questions and concerns of residents. The results of the meetings will be incorporated, as needed, into the final scope of work. DETAILED ENERGY RESOURCE ANALYSIS Task 1 - Evaluate Existing Power Plant, Electrical Distribution System and Geotechnical Data Marsh Creek will conduct a site visit to collect detailed infrastructure data required to complete a realistic feasibility study, to begin preparing the conceptual design process and to address the heat recovery component for the new wind system. There are a number of power plant and electrical distribution system related issues that must be addressed to not only maximize base electric service reliability, but which are also critical components of the feasibility study. If not Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 7 of 19 7/21/2010 clearly identified, result could be either an underestimating or overestimating of the proposed wind system’s contribution. In order to prepare preliminary turbine foundation costs, a review of existing geotechnical work on or near the proposed wind turbine(s) site will be conducted. Task 2 - Evaluate the Condition and Acceptability of Existing Controls and Switchgear for Compatibility with a New Wind System Concurrent with the activity noted in Task 1, an evaluation will be conducted to determine the feasibility of integrating the existing power generation controls with the new wind system’s likely supervisory control scheme. A thorough examination of the existing generation system and control equipment is also necessary to ensure effective control and monitoring integration of the wind turbine and ancillary controls. Similar to the Kokhanok wind integration control process, substantial, but cost effective, modifications may be able to be necessary to the existing controls so as to allow for a seamless integration of new technologies. This will also include a look at the current diesel system loads to identify any voltage and current imbalances between phases. The work outlined above allows for more accurate estimated equipment and construction costs which are key components of the feasibility and economic analysis. IDENTIFICATION OF LAND AND REGULATORY ISSUES Task 4 - Confirm Site Control and Identify Regulatory Issues The proposed wind turbine(s) site is owned by the New Koliganek Village Council. Site control and access will be verified and documented in the study. PERMITTING AND ENVIRONMENTAL ANALYSIS Task 5 - Documentation of Relevant Permits and Environmental Considerations Applicable permits will be identified along with anticipated permitting timelines and an identification of potential barriers to permit approval. The following environmental and land use issues will be addressed and a determination made of their applicability.  Threatened or endangered species Anticipating a positive outcome from the feasibility study and the intent to seek Federal funding in addition to State of Alaska funding, a one-year Avian Study will be conducted. An Avian (Bird Movement) Study to identify endangered or threatened birds that use the area. The principal goals of baseline bird studies are to quantitatively describe the temporal and spatial use by birds of the study area and provide baseline information on avian species and their habitat sufficient to use in evaluating the probable impact of installation of a wind turbine. The specific goals are to provide avian monitoring protocol training to local agent(s), collect avian data to determine bird activity at the delineated areas around Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 8 of 19 7/21/2010 the turbine site, record any dead or downed (injured) birds at the site that may be the result of collisions with the meteorological tower, and prepare avian monitoring reports including back-up information and complete avian data. Local agents in Koliganek will be selected and trained to conduct the avian observations.  Habitat issues  Wetlands and other protected areas  Archaeological and historical resources  Land development constraints  Telecommunications interference  Aviation considerations  Visual, aesthetics impacts  Identification and discussion other potential barriers DETAILED ANALYSIS OF EXISTING AND FUTURE ENERGY COSTS AND MARKETS Task 6 - Review Historical Power Plant and Electrical Consumption Data and Identify Candidates for Heat Recovery Thermal Nodes Collect and evaluate the following historical data for a minimum of two years:  power plant power generation  waste heat production and consumption data  electric utility kWh sales data and non-fuel/fuel costs Included will be identification of anticipated load growth or reductions in the near term such as additional housing, new community buildings sewer and water energy efficient upgrades and Koliganek school additions or upgrades. ASSESSMENT OF ALTERNATIVES Task 7 - Identify Wind System Alternatives and Model for Wind System Electrical/Thermal Output Scenarios Utilizing the data from the “Koliganek Alaska Wind Resource Report” and the information identified above, identify and select the wind turbine(s) which best meet the needs of the community. Criiteria to be considered are wind turbine history in Alaska, if any, cost, availability, and operation and maintenance requirements. Among the wind turbines to be considered are the following:  Remanufactured Vestas V-27  Remanufactured Vestas V-17  North Wind 100  Nordtank 300kW Wind  Micon M530-250W Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 9 of 19 7/21/2010 CONCEPTUAL DESIGN ANALYSIS AND COST ESTIMATES Task 8 - Complete Conceptual Design and Prepare Cost Estimates Once the optimal wind turbine(s) have been selected, a preliminary foundation design and overall system conceptual design will be developed. Wind turbine(s) excess energy application will be compatible with the existing Koliganek diesel power plant’s waste heat recovery system will be identified. Stand alone wind turbine thermal node options will be explored. Components of the preliminary wind system design will include:  description of renewable energy technology specific to the project location  optimum installed capacity  anticipated capacity factor  anticipated annual generation  anticipated barriers  basic integration concept  equipment freight method Estimated wind system, ancillary equipment, freight. construction and operation and maintenance costs will be completed. Required power plant upgrade cost estimates will also be provided. DETAILED ECONOMIC AND FINANCIAL ANALYSIS Task 9 - Complete Economic and Financial Analysis Following completion of Tasks 1 through Task 8, Marsh Creek will develop estimated project costs based upon completion of the project within four months of the Notice to Proceed. The wind system capital construction and estimated O&M costs, power plant metering data and current and projected kWh sales data will form the basis the detailed economic analysis and financial analysis which will incorporate:  Estimated installation costs  Power plant upgrade and controls costs  Operational and operational impact of wind penetration  Verification other thermal load assumptions and costs  Economic and operational impact of wind integration  Projected operation and maintenance costs and funding options  Land ownership, permits, and environmental issues CONCEPTUAL BUSINESS AND OPERATIONS PLANS Task 10 – High level business and operations plans reflecting the selected preliminary design will be prepared in conjunction with the Project Manager. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 10 of 19 7/21/2010 FINAL REPORT AND RECOMMENDATIONS Task 11 – Draft Final Report and Recommendations Completion (exclusive of avian study) Following approval of the draft final report and its recommendations by the Project Manager and the New Koliganek Village Council, a community meeting will be held to present the draft final report and to receive comments and to answer questions regarding the report and its recommendations. The presentation will provide community with a clear picture of probable consequences for proceeding with a wind system versus upgrading existing diesel power plant versus doing nothing. Also invited to the meeting will be representatives from the Alaska Energy Authority, Melody Nibeck, Tribal Energy Program Manager, and Patty Heyano, Program Development Director, for the Bristol Bay Native Association. The Draft Final Report pending completion of the avian study the end of December 2011. Task 12 - Final Report and Recommendations Completion Upon receipt of receipt of the results of the avian study the end of October 2012, the final report will be submitted to the Alaska Energy Authority following final approval by the Project Manager and the New Koliganek Village Council. The report will incorporate the avian study. Should the results of the avian study necessitate a re-evaluation of the Draft Final Report recommend- dations, the recommendations bill be amended as needed with the support of the Koliganek Village Council. 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. Herman Nelson Sr., New Koliganek Village Council President, will serve as the Project Manager and owner of the project. Mary Lou Nelson, Village Council Administrator, will be responsible for submittal of required financial and status reports to the Alaska Energy Authority. Melody Nibeck, Tribal Energy Program Manager and Patty Heyano, Program Development Director, for Bristol Bay Native Association will be available to assist Mary Lou Nelson, as needed, with financial and status reports submittal to the Alaska Energy Authority. Both Ms. Nibeck and Ms. Heyano have grant and project management experience. Marsh Creek’s Project Engineer and administrative staff will also work closely with Herman Nelson and Mary Lou Nelson to ensure their duties are manageable. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 11 of 19 7/21/2010 Marsh Creek Energy Systems, will be responsible for will carry out the Scope of Work described in this application. Reference John Lyons’ and other staff resumes and Marsh Creek’s Capability Statement. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 12 of 19 7/21/2010 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Marsh Creek’s Project Engineer, John Lyons, will be responsible for maintaining regular communications between the New Koliganek Village Council, Marsh Creek and the Alaska Energy Authority including quarterly progress reports and other communication methods as required in the grant agreement. John Lyons, is also responsible for maintaining an open channel communications with the Project Manager, particularly if any problems occur or to schedule Council in-kind assistance. 3.6 Project Risk Discuss potential problems and how you would address them. The project is a feasibility and conceptual design analysis. The risk is minimal. 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. Based on a resource report by V3 Energy, LLC in 2006, Koliganek has a wind power class of 4 and warrants further study. Meteorological data was collected for one year (July 8, 2005 to July 13, 2006). In summary, the report reads: “The wind resource study in Koliganek indicates very good potential for the development of wind power to augment the village’s diesel power supply. One excellent advantage for the village is the old airstrip where the meteorological test tower was located. Because the village and surrounding area is comprised of permafrost soils, construction of wind turbines on the old airstrip would significantly reduce construction costs.” The report presents data, facts and figures on the quality of data, measured wind speeds, monthly averages, wind shear profiles, probability distribution function, wind roses, turbulence intensity, air temperature and density, and wind turbine performance results at 89 percent availability. The report also provides information on annual fuel cost avoided for energy generated by wind versus diesel. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 13 of 19 7/21/2010 The Koliganek community pathway as identified by the Alaska Energy Authority (“Alaska Energy Pathway, Toward Energy Independence”) report calls for immediate action of efficiency and conservation assuming the demand-side for residential and non-residential electric and space heating. On the demand side, the community of Koliganek is participating in the Energy Wise program through RuralCap, and the Energy Efficiency and Conservation Block Grant program through the Bristol Bay Native Association. Both programs educate and provide technologies to reduce electric loads and make improvements to the building envelope for residential and non- residential buildings. On the supply side, the community of Koliganek is in line for a power system upgrade and currently operates a heat recovery system which benefits the clinic. The pathway identifies a wind-diesel hybrid power system as a potential for short-, mid- and long-term deployment of a local, renewable resource for electric distribution. The above referenced report confirms this and further study is warranted. The pathway also identifies wood as a potential for long-term deployment of a local resource for space heating. The primary resource for space heating is fuel oil, while some residents supplement with wood. 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. Koliganek’s modular power plant includes manual switchgear with three diesel generator sets. The overall condition is good. Diesel Genset #1 John Deere 180 kW Diesel Genset #2 John Deere 200 kW In CY2009 the fuel efficiency was 10.9 kWh generated per gal consumed. The feasibility study will included a detail assessment of the prime movers and controls. 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. The existing energy resource used for electric generation is diesel. Other existing energy resources include heating fuel and wood for space heating. The project is a feasibility and conceptual design analysis. There is no impact on the existing energy resources used. The information presented in the final report will include data on any estimated impact to the existing energy infrastructure and resources. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 14 of 19 7/21/2010 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Electricity Current Electric Rate: $0.50/kWh Fuel Cost: $0.54/kWh Non-Fuel Cost: $0.07/kWh Current Heating Fuel Cost: $4.2464/gal weighted cost Current Diesel Fuel Cost: $4.2464/gal weighted cost The CY2009 average fuel efficiency was 10.9 kWh generated per gallon of fuel consumed. In broad terms, the energy market for Koliganek has been unstable based on its direct dependence on the price of fuel and the components of that price: crude oil, refinement, retail, tax, transportation and storage. Delivery windows to Koliganek are narrow and often complicat ed by climate conditions (low water levels and ice). It is generally believed using the availability of a local, renewable resource such as wind would offset the fuel cost component of the electric rate providing for more price stability by reducing the rate for the end-user and the amount of diesel required to power the generator. Heating costs are another large expense for community owned buildings and the school district. The project will include an assessment of using heat recovery from the wind turbines as a a supplemental heat source. The project is a feasibility and conceptual design analysis. There will be no actual impact on the existing energy market. The information presented in the final report, however, will include data projected impact on the existing energy market and its customers. 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 project is a feasibility and conceptual design analysis; this has yet to be determined. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 15 of 19 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. The project is a feasibility and conceptual design analysis. The selected site is owned by the New Koliganek Village Council. Substantiating documentation will be acquired during the performance of the project. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues.  List of applicable permits  Anticipated permitting timeline  Identify and discussion of potential barriers The project is a feasibility and conceptual design analysis. This has yet to be determined. The scope of work includes identification of applicable permits, the anticipated permitting timeline and an identification of potential barriers. 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 The project is a feasibility and conceptual design analysis. This has yet to be determined. 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, Marsh Creek Energy Systems will new system cost estimates and estimated revenues. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:  Total anticipated project cost, and cost for this phase  Requested grant funding  Applicant matching funds – loans, capital contributions, in-kind  Identification of other funding sources  Projected capital cost of proposed renewable energy system  Projected development cost of proposed renewable energy system The project is a feasibility and conceptual design analysis. This has yet to be determined. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 16 of 19 7/21/2010 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.) The project is a feasibility and conceptual design analysis. This has yet to be determined. 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 project is a feasibility and conceptual design analysis. This has yet to be determined. 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. Note that the purpose of the feasibility study is to determine the proposed system design capacity and fuel usage. The Project Cost Worksheet assumptions are based upon information developed by others which are referenced below. They do not include heat recovery from excess wind of the yet-to-be proposed wind system. The proposed system design capacity and fuel usage on the the Project Cost worksheet is only intended as a general framework based upon the following assumptions: - The analysis proves favorable - The village council decides to install a wind-diesel system for electric generation - 55 kW Vestas wind turbine is selected with energy output of 97,100 kW/h/year* - $5,000 - $10,000 /kW for installation calculations** - $5.50/gal for diesel fuel calculations - 20 year project life for project benefit/cost ratio calculation - Simple Payback Period (SPP) for payback years calculation Sources: * Koliganek, Alaska Wind Resource Report, Douglas Vaught, V3 Energy, LLC, Page 25. ** Alaska Isolated Wind-Diesel Systems: Performance and Economics, April 8, 2010; Katherine Keith, Wind-Diesel Application Center, Alaska Center for Energy and Power, University of Alaska, Fairbanks; Ginny Fay, Institute of Social and Economic Research, University of Alaska, Anchorage, Page 42. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 17 of 19 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 The “Koliganek, Alaska Wind Resource Report” written by V3 Energy, LLC presents data on wind turbine performance. The projections are based on wind analysis software and power curves provided by manufacturers. The following are three examples for annual displacement in gallons and dollars at 89 percent wind turbine availability: Turbine Annual Output Fuel Avoided Fuel Price (/gal) (kWh/year) (gal) $3.00 $4.00 $5.00 $6.00 Southwest Skystream 3.7 4,496 360 1,080 1,440 1,800 2,160 Vestas V15 97,100 7,768 23,304 31,076 38,840 46,608 Northern Power NW 100/20 150,449 12,036 $36,108 $48,144 $60,180 $72,216 Note that other wind turbines will also be considered in the feasibility study. The project is a feasibility and conceptual design analysis; the anticipated annual revenue, incentives and revenue streams have yet to be determined. If the village council decides to proceed with the installation of a new wind system for electric generation and heat recovery, applications to state and federal granting agencies will be needed to help fund the project. If state grant funds are used, the Village Council if committed to sharing data with agencies such as the Alaska Center for Energy and Power, Institute of Social and Economic Research and others who analyze energy efficiency and renewable energy systems for the benefit of public investments. Other public benefits relate to the cutback in the supply and demand of fossil fuels that could lead to a reduction in greenhouse gas emissions thereby protecting air quality and minimizing potential fuel spills causing environmental damage to waters and lands. SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 18 of 19 7/21/2010  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 This has yet to be determined. 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. The New Koliganek Village Council and Marsh Creek Energy Systems are prepared to begin once a grant agreement is signed. 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. There is broad local support for the project and letters of support are attached. 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 Reference attached Koliganek Grant Budget Form. Reference attached Koliganek Cost/Benefit Worksheet. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 19 of 19 7/21/2010 SECTION 9 – 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. 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 1.6. F. Authorized Signers Form. G. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. - Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable 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. Print Name Herman Nelson Sr. Signature Title President, New Koliganek Village Council Date