HomeMy WebLinkAboutFalse Pass Wind Renewable Energy GrantApplication
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
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of False Pass Electric Utility
Type of Entity:
Local Government
Mailing Address
P.O. Box 50
False Pass, AK. 99583
Physical Address
100 Main Street
False Pass, AK 99583
Telephone
907-548-2319
Fax
907-548-2214
Email
cityoffalsepass@ak.net
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Ted Meyer
Title
Community Development Coordinator
Mailing Address
3380 C Street, Suite 205
Anchorage, AK 99503-3952
Telephone
(907)274-7555
Fax
(907)276-7569
Email
tmeyer@aeboro.org
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.
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SECTION 2 – PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Type in your answer here and follow same format for rest of the application.
False Pass Wind Energy Project
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.
False Pass is located on the eastern shore of Unimak Island on a strait connecting the Pacific
Gulf of Alaska to the Bering Sea. It is 646 air miles southwest of Anchorage.
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
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 brief one paragraph description of your proposed project.
False Pass currently produces all their electricity from diesel generators and heating from
burning fossil fuels. Data from a met tower set up several years ago was compromised and has
data gaps when bears damaged the equipment, but the data still may be useful if analyzed using
appropriate assumptions and software. The wind resource may prove to be good, but we won’t
know until the data is analyzed and a wind resource report is completed. In addition, an avian
study will determine if birds will be of concern and/or if mitigation measures are necessary.
This project seeks funding for analyzing the raw wind data and preparing a wind assessment
report for False Pass. Based on wind assessment results/report a subsequent proposal may be
submitted for conceptual design. In addition, an avian study will determine if migrating or
nesting birds present concerns to a wind project and determine mitigation measures. 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
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goals are to provide avian monitoring protocol training to local agent(s), collect avian data to
determine bird activity at the delineated areas around 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.
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.)
This project will reduce fuel and the overall energy costs to the False Pass community. False
Pass currently produces all their electricity from diesel generators and heating from burning
fossil fuels. Little biomass is currently available to offset home heating and hydro in the local
streams and solar energy do not seem practical in False Pass, but the wind resource may prove to
be good. Based on surveys of local community members False Pass has good wind and the
report may support these survey results.
The estimated annual electricity savings, based on the use of a couple 10KW turbines will be
27,120kWh. This will translate into a financial savings of $7,594 per year (estimated at
$0.28/kWh). Larger wind turbines will provide more power and more savings, but improvements
to the electrical utility would be necessary; this will be investigated if this project is funded.
Other project benefits will include:
Reduced dependence on diesel fuel and the expense involved in its transportation and
storage.
Save on current operation and maintenance costs by less time from using diesel
generators
Contribute to the reduction of air pollution and affects on climate change.
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 estimated Phase I Reconnaissance cost of this project is $74,075, Phase II Feasibility is
$64,550. The project cost total is $138,625. Aleutians East Borough staff time will contribute in-
kind to this project for project administration and management ($10,000). The total requested is
$128,875.
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. $128,625
2.7.2 Other Funds to be provided (Project match) $10,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $138,625
Project Costs & Benefits
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(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)
$ not available
2.7.5 Estimated Direct Financial Benefit (Savings) $ not available
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.)
$ not available
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.
The Aleutians East Borough uses a team approach in project management and development.
AEB staff maintains routine communications with False Pass City staff in all aspects of
community development and projects. This close contact and coordination will continue in the
False Pass Wind Power Project. The False Pass City Council has authorized the AEB to provide
overall project administration and management of this project. Upon project funding, the AEB
will select and work with Marsh Creek as the design and construction management consultants to
initiate, oversee, and complete the project.
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Aleutian East Borough Project Management staff includes:
Sharon Boyette, Administrator
907-274-7555, sboyette@aeboro.org
Ted Meyer, Community Development Coordinator
907-274-7555, tmeyer@aeboro.org
Roxann Newman, Finance Director.
907-497-2588, rnewman@aeboro.org
Attached are their resumes.
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.)
See Project Milestones table below for Project 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 Milestones Reimbursable Tasks Timeline
Phase I.
Reconnaissance
Project Scoping
and
Community
Solicitation
Project Management
Establish avian monitoring needs for area
as 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, provide information about
training opportunities for wind-diesel
system operations, and solicit volunteers
for avian monitoring (this task will be
completed concurrently with the
Preliminary Site Visit funded in the next
milestone – no additional funding added
for this milestone in budget)
8/1/11 to 10/31/11
Resource
Identification
and Analysis
Project Management
Preliminary site visit
Contract for wind data analysis
FAA Approval for met tower on selected
site(s)
Determine point of contact and train local
9/1/11 to 10/31/12
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agents to conduct avian observations
Gather avian observations
Land use,
permitting, and
environmental
analysis
Project Management
Determine site ownership issues, if any
Contact agencies for preliminary approval:
SHPO, DOD, ACMP
Document, if any, community concerns
with sight and sound at chosen location
9/1/11 to
10/31/11
Preliminary
design analysis
and cost
Project Management
Utilize Wind Resource Report to identify
optimal wind turbines and configuration –
4 types are currently under consideration:
Remanufactured Vestas V-27
North Wind 100
Nordtank 300kW Wind
Micon M530-250W
10/1/12 to
11/30/12
Cost of energy
and market
analysis
Project Management
Assess cost of energy for current and
predicted usage
10/1/12 to
11/30/12
Simple economic
analysis
Project Management
Compare current vs. predicted price of
energy
10/1/12 to
11/30/12
Final report and
recommendation
s
Project Management
Prepare Wind Resource Report and
Present to School /Community along with
options for development. Solicit input
from community and interest in training
for wind-diesel O&M
11/1/12 to
12/31/12
Phase II. Feasibility
Project scoping
and community
solicitation
Project Management
Assess interest for advanced training in
wind-diesel O&M
Provide School information about
vocational training opportunities in wind-
diesel O&M
8/1/11 to 9/30/11
Detailed energy
resource analysis
Project Management
Evaluate existing diesel power plant,
electrical distribution system, and
geotechnical data
Evaluate condition and acceptability of
existing controls and switchgear for
compatibility with a wind system
8/1/12 to
12/31/12
Identification of
land and
regulatory issues
Project Management
Address site ownership and regulatory
issues, if any
9/1/11 to 10/31/11
Permitting and Project Management 9/1/11 to 12/31/12
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environmental
analysis
Contact USFWS, FAA, DOD, ACMP, and
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 existing and
future energy
costs and
markets
Project Management
Review historical power plant and electrical
consumption data
Identify building candidates for heat
recovery
Identify planned or proposed future
growth load for community
11/1/12 to
12/31/12
Assessment of
Alternatives
Project Management
Compare productivity of different wind
turbines and configurations for local wind
regime. 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
11/1/12 to
12/31/12
Conceptual
design analysis
and cost
estimate
Project Management
Include design of heat recovery system
utilizing engine jacket heat combined with
excess electricity from wind energy in
wind-diesel power plant design
11/1/12 to
12/31/12
Detailed
economic and
financial analysis
Project Management
Calculate rate for electricity that displaces
diesel through the heat recovery system
11/1/12 to
12/31/12
Conceptual
business and
operations plans
Project Management
Business and Operations Plan developed
for wind-diesel power plant w/heat
recovery system with participation from
community. Meet with utility board to
discuss and formalize.
11/1/12 to
12/31/12
Final report and
recommendation
s
Project Management
Community Meeting to Present Plan and
Announce Training Opportunities
Final Grant Report to AEA
11/1/12 to 3/30/13
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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 refe rences
for known, key personnel, contractors, and suppliers as an attachment to your application.
The Aleutians East Borough staff will be responsible for implementation and successful
completion of the project. The AEB will confer routinely with the False Pass City staff while
simultaneously working with qualified consultants (Marsh Creek LLC and V3 Energy) to
develop and complete the project.
The AEB will follow its procurement and bid policies as far as selecting firms and purchasing
equipment, supplies, and materials. Selection of consultant and contractors will be based on the
type and amount of past wind project experience of the firm as well as individual work
experience, experience and familiarity in the AEB region, and project cost.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The AEB Community Development Coordinator will be the project liaison and contact person
among all parties (City of False Pass staff, Marsh Creek LLC, general contractors, vendors, and
the AEA). The position will help 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. AEB 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 are potential problems in project logistics and construction in remote areas such as
Aleutians East Borough communities. Adverse weather conditions can also cause project delays.
Aleutians East Borough staff has much experience in setting up and managing community
development projects in AEB communities. 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.
The U.S. Fish and Wildlife Service was consulted about avian and environmental concerns.
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Endangered waterfowl use the area so avian studies 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 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.
False Pass may have class 5 wind (see preliminary report table and figures below), and the wind
resource could exceed the community’s electrical energy needs when the wind is blowing.
Additional analysis of these data is necessary for determining the quality of wind in False Pass.
Report Created: 8/12/2010 14:22 using Windographer 2.0.4
Filter Settings: <Unflagged data>
Variable Value
Latitude N 54° 52' 0.000"
Longitude W 163° 25' 0.000"
Elevation 17 m
Start date 12/1/2005 00:00
End date 9/4/2007 12:00
Duration 21 months
Length of time step 10 minutes
Calm threshold 0 m/s
Mean temperature 5.55 °C
Mean pressure 101.1 kPa
Mean air density 1.264 kg/m³
Power density at 50m 531 W/m²
Wind power class 5 (Excellent)
Power law exponent 0.303
Surface roughness 0.904 m
Roughness class 3.83
Roughness description Suburban
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4.2 Existing Energy System
4.2.1 Basic configuration of Existing Energy System
Briefly discuss the basic configuration of the existing energy system. Include information about
the number, size, age, efficiency, and type of generation.
The City of False Pass owns and operates the False Pass Electrical Utility. The electric utility
serves 21 residential, 11 commercial, one state facility, and nine community facilities customers.
There are three John Deere diesel generators used for power generation. Generato r #1 has a rated
capacity of 90 kW, generator #2 has a capacity of 125kW, and Generator #3 has a capacity 150
kW. The peak load is 75 kW with an average load of 49kW. The community has used an
average of 47,000 gallons per year of diesel #2 for electrical generation for the last two years.
The utility’s power distribution system is all underground 3-phase wire operating at 12,470 volts
grounded Y.
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.
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The False Pass Power Plant produces electrical energy by burning diesel fuel in engine-driven
generators. This satisfies a community power consumption of approximately 384,699 kWh per
year. This consumption does not include power that is used to operate the power plant, or power
lost in distribution. By integrating wind power into the existing system, our goal is to generate
the same amount of energy output, using substantially less fuel than is currently being used.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
False Pass is located on the eastern shore of Unimak Island on a strait connecting the Pacific Gulf
of Alaska to the Bering Sea. It is 646 air miles southwest of Anchorage and accessible only by air
and barge transportation. The community experiences long and cold winter nights, and severe winter
storms can be continuous.
Existing power consumption is approximately 384,699 kWh per year. Reliable power service is
essential for airport lights (especially in winter), the health clinic, school, government, tribal, and
corporation buildings and facilities, harbor utilities, the Bering Pacific Seafood Plant, commercial
enterprises, and residences.
Wind power will ultimately help stabilize or even lower monthly electricity costs which keep
increasing due to the reliance of fuel for power generation.
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
A design of a wind-generator hybrid system will depend upon the wind assessment report
findings. Vertical axis turbine(s) may be more appropriate for this site.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed t o the
project or how you intend to approach land ownership and access issues.
There are a couple of potential wind turbine sites located at the city shop and the city power
building. The City is agreeable to a potential wind turbine project being sited on their land.
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4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
Potential permits required of the project include:
Threatened Species (U.S. Fish & Wildlife)
The USFWS is concerned about bird kills caused by birds flying into wind turbines, towers and
guy wires. They have not adopted a formal position against installing wind turbines. In fact, the
USFWS is in the process of installing vertical axis wind turbines at their complex in the AEB
community of Cold Bay. The USFWS staff in Cold Bay has expressed the position that at
potential wind turbine sites the flight patterns of birds should be assessed before turbine
installation so that bird kills can be minimized.
Aviation Considerations (FAA).
Because of the proximity of the False Pass Airport to potential wind turbine sites in town, there
may be need to make a hazard determination of the turbine site in relation to the runway.
Telecommunication Impacts (National Communications Information Administration and
the National Weather Service)
Wind turbines may interfere with communications signals by generating electromagnetic noise
and/or creating physical obstructions that distort communications signals.
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
Land development constraints
As all identified land owners are agreeable to a potential wind turbine located on their property,
the only potential land development constraints may arise from site location issues with:
Threatened or Endangered species (U.S. Fish & Wildlife)
Telecommunications interference (National Communications Information Administration
and the National Weather Service)
Aviation considerations (FAA)
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Potential permit issues with the above will be addressed early in the project development process.
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
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
From the Alaska Energy Authority reports (see excerpts below) a total project costs would be
under $2M.
This phase of the project (this proposal) total cost is $138,625 with $10,000 matching. We
anticipate securing some funding from the federal government for this project which would
require good avian study and environmental data and reporting. Based on the economic findings
we will investigate the use of loans and capital contributions.
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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.)
AEA estimated the O & M costs for a Wind—Diesel system in False Pass to be $19,062.
Currently the O & M costs at the diesel plant are not recoverable. The city is unable 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 will 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 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 Wind Study will identify power/purchase sale information accurately. AEA estimates that
Wind-Diesel cost of energy as potentially $0.83 per kwH.
The AEP has provided the potential cost range of power from a wind-diesel system. The cost of
displaced fuel will be used as a pricing method for False Pass.
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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.
MarshCreek LLC provided the costs for the wind study and pricing for wind turbines. Sources
sited for potential wind energy savings and costs came from the AEP document downloaded from
the AEA site.
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
According to the AEP study, False Pass has the potential to save over $58,000 or over 10,000
gallons in displaced fuel annually. There have been no Proposed Power Purchase Agreement
price, RCA tariff, or cost based rates for the proposed wind-diesel system developed at this time.
The people of False Pass would like to be less dependent on the variable price of diesel fuel,
lessen the environmental risks of fuel transport and storage hazards by requiring less diesel fuel to
power their community.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 17 of 19 7/21/2010
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
The City of False Pass Electric Utility currently operates the power plant and electrical distribution
system in False Pass. 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
costs will be determined once specifications are developed for the wind turbines to be installed as
a result of this study.
There will be a learning curve in operating the proposed wind-diesel system. Adequate training
and support will be budgeted during additional phases. 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.
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 Aleutians East Borough was awarded a $25,000 grant from the Alaska Energy Authority on
July 27, 2009 to perform a renewable energy resource feasibility study for the communities of
Cold Bay, False Pass, and Nelson Lagoon (the AEB contributed $5,000 cash and $10,000 in-kind
to the project). The study project was completed on May 18, 2010 and submitted to the AEA on
June 2, 2010. The study contains an analysis of existing energy power systems, potential
renewable energy resources, and recommendations for renewable energy projects in the three
communities. The study provides the basis for much of the information contained in this grant.
The City of False Pass and the Aleutians East Borough are currently receiving assistance from the
Aleutian Pribilof Island Association and Marsh Creek, Inc. to follow-up on the project
recommendations contained in the completed Renewable Energy Feasibility Study. Specifically,
we are refining the type of equipment specified in the plan as well as developing work plans for
project implementation. This work also provides the basis for much of the information in this
application. With this additional work – completion of the avian and the feasibility studies, the
City of False Pass Electrical Utility will be ready to proceed immediately.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 18 of 19 7/21/2010
SECTION 8– LOCAL SUPPORT
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 False Pass City Council and the Aleutians East Borough Assembly both passed resolutions in
public meetings in support of the False Pass Electric Utility’s Renewable Energy Fund Round IV
Grant, entitled, “False Pass Renewable Energy Wind Project”. Please see the enclosed two resolutions.
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
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
The expected cost of the feasibility study is $138,625. The Grant Budget Form is attached.
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.
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