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HomeMy WebLinkAboutESKA-APPLICATIONALASKA Renewable Energy Fund Grant Application Round IV SECTION 1 —APPLICANT INFORMATION Name (Name of utility, IPP, or govemment entity submitting proposal) Bering Pacific Engineering Type of Entity: An independent power producer Mailing Address Physical Address 8309 Sand Lake Rd 8309 Sand Lake Rd Anchorage, AK 99502 Anchorage, AK 99502 Telephone Fax Email 223-0678 245-8031 dan@bpealaska.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Title Daniel Hertrich President Mailing Address 8309 Sand Lake Rd Anchorage, AK 99502 Telephone Fax Email 223-0678 245-8031 daniel.hertrich@gmail.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as; appropriate.',lf 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 X An independent power producer in accordance with 3 AAC 107.695 (a) (1), or 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. AEA11-005 Grant Application Page 2 of 12 7/21/2010 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 of your project. 2.1 Project Title - (Provide a 4 to 5 word title for your project); Eska Creek Hydroelectric 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. The project is located on Eska Creek near Sutton, AK. Refer to the USGS Anchorage D-S and C- S Quadrangle for a map of the location. The project will serve the Sutton and the Railbelt community. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels X Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) X Reconnaissance Design and Permitting Feasibility Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The Eska Creek Hydroelectric Project is a potential run of river hydroelectric resource located near Sutton, AK with a capacity up to 1.5 MW. AEA11-005 Grant Application Page 3 of 12 7/21/2010 ALASKA Renewable Energy Fund / ENERGY AUTHORITY Grant Application Round IV 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 benefits of this project include completion of this study which will benefit the railbelt utilities because it will provide the information needed to determine whether a viable hydroelectric project can be constructed at Eska Creek. The public benefit is the cost to perform the study. In terms of a completed project, the benefits include added renewable energy capacity for the railbelt, economic development and job creation, increased recreational opportunities, improved grid efficiency, generation diversity, and reduced consumption of dwindling natural gas supplies in Cook Inlet. 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 cost of the reconnaissance study will be $44,400. Of this portion, Bering Pacific Engineering will provide $7,400 in cash and in -kind work. The funding will used to perform investigation of land ownership, mapping and surveying, resource data collection through stream flow monitoring, resource assessment, conceptual design, cost estimating, and economic analysis. 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. $37,000 2.7.2 Other Funds to be provided (Project match) $ 7,400 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $44,400 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 $6,800,000 including estimates through construction) 2.7.6 Estimated Direct Financial Benefit (Savings) $9,510,000 2.7.6 Other Public Benefit (if you can calculate the benefit in $ 0 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 4 of 12 7/21/2010 � GIRD ORITY ALASHKA Renewable Energy Fund Grant Application Round IV 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. Daniel Hertrich will be the project manager. Mr. Hertrich will be responsible for overseeing the work, processing invoices, interfacing with the grant administrators, and ensuring compliance with all the grant conditions. 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.) The study, because of the collection of hydrology data, will take approximately one year from the time the grant is awarded and a consultant is retained to perform the work. 3.3 Project Milestones Define key tasks and decision points in your project and a°' schedule for achieving them. The Milestones -must also be included on your budget worksheet to demonstrate how you propose to manage the project cash flow. (See Section 2 of the RFA or the Budget Form.) . The following are the key milestones for this project: 1. Resource Assessment 2. Land Use, Permitting, and Environmental Investigation 3. Conceptual Design and Cost Estimate 4. Economic Analysis 5. Final Report 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. Bering Pacific Engineering (BPE) expects all work to be completed with existing staff. Equipment rental and purchases will be required for surveying and stream flow measurements. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. BPE will update the Authority on the project with quarterly reports. 3.6 Project Risk Discuss potential problems and how you would address them. The project only involves data collection and evaluation of the potential resource. Lack of funding simply halts the effort and no party incurs risk. AEA11-005 Grant Application Page 5 of 12 7/21/2010 /440E-LE'--)) ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application Round IV SECTION — PROJECTDESCRIPTION AND TASKS • Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA • The level of information will vary according to phase(s) of the project you propose' to undertake with grant funds. • if you are applying for grant funding for more than one phase of a project provide a plan and grant budget form for completion of each phase, • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. The Eska Creek hydroelectric project is characterized by the following preliminary configuration: PROJECT ESKA CREEK BASIN AREA 4.9 sq mi INTAKE ELEV 2500ft POWERHOUSE ELEV 1000 ft STATIC HEAD 1500 ft PROJECT FLOW 17 cfs PENSTOCK DIAMETER 18 in PENSTOCK LENGTH 12600 ft POWER OUTPUT 1450 kW COST $5,800,000 ENERGY 6,350,000 kWh ANNUAL BENEFIT $635,000 O&M $150,000 PV BENEFIT $9,510,000 B/C RATIO 1.6 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 project is located in the south central railbelt. The Sutton area is serviced by Matanuska Electric Association. 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 south central railbelt relies predominantly on natural gas for electrical energy generation. AEA11-005 Grant Application Page 6 of 12 7/21/2010 /Z,�- ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application Round IV 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The project is located in the south central railbelt. There is clearly a desire for renewable energy projects to be added to this area but the energy market for them is not well defined at this time. For the economic analysis in this application, an energy rate of $0.10 per kWh is assumed. 4.3Proposed 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 physical features of the Project include a typical run -of -river hydroelectric project. There is small diversion wall to capture the water in the creek. This is followed by a filtering system to remove debris and streambed material. The water is conveyed to the pipeline which transports water to powerhouse with minimal headloss. The high pressure water is fed into a turbine connected to a generator that is connected to the electrical grid by a high voltage transformer. A rural class road is built to the powerhouse while the intake is accessed by a construction road. 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 located on land owned by the State of Alaska and private entities. The feasibility study will investigate potential project layouts and the possibility of acquiring easements for 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 AEA11-005 Grant Application Page 7 of 12 7/21/2010 /ALASKA Renewable Energy Fund dKD ENERGY AUTHORITY Grant Application Round IV The following is list of the anticipated permits and approvals required for this project: • Water Use Permit / Water Rights (ADNR) • Land Lease/easement (ADNR) • Fish Habitat Permit (ADFG) • Nationwide Permit 17 for Hydropower Projects — for incidental wetlands fill and similar matters (Army Corps of Engineers) • Alaska Coastal Management Program Consistency Review (ACMP) Finding of non jurisdiction (FERC) 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 Environmental issues are not known at this time. 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 The cost for the development of the project is presumed to be will $4,000 per kW. The reconnaissance study will collect the data necessary to provide a preliminary cost estimate. AEA11-005 Grant Application Page 8 of 12 7/21/2010 IZELP) ALASKA Renewable Energy Fund 401E) ENERGY AUTHORITY Grant Application Round IV 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be fundedby 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 then serve.) Operation and maintenance costs for the project are estimated to be $150,000 per year. This is based on work done for the Fishhook Hydro. The reconnaissance study will examine operation and maintenance costs in detail. 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 For the purposes of economic analysis, it is assumed that the railbelt is willing to invest in this project at a rate of $0.10 per kWh. The reconnaissance study and future developments with other renewable energy projects in the railbelt will, in the near future, determine whether this an appropriate rate. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project., Attached is a completed cost worksheet for the project. 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 presumed project benefit is based on the energy it produces valued at $0.10 per kWh, less the operation and maintenance costs, calculated as a present worth over a 30 year period with a discount rate of 3%. Additional benefits including renewable energy tax credits and carbon credits are not included in the benefit. The reconnaissance study will address the primary project benefits along with the secondary benefits as well. AEA11-005 Grant Application Page 9 of 12 7/21/2010 12MVE) ALASKA Renewable Energy Fund 4NED ENERGY AUTHORITY Grant Application Round IV 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 descriptionof 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 Hydroelectric projects have proven to be, and still are, the most sustainable power generation investment throughout Alaska. No other generation technology has come close to having the historical longevity and low maintenance that hydroelectric projects do. Once the hurdle of the initial capital construction cost is overcome, the projects are successfully maintained and renewed by all classes of communities in Alaska. 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 reconnnaissance work proposed in this grant application could begin immediately after award of the grant. AEA11-005 Grant Application Page 10 of 12 7/21/2010 ALASMCD ENERGY HKA Renewable Energy Fund Grant Application Round IV SECTION 8- LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include' letters of support from the community that would benefit from this project. The railbelt utilities are generally in support of evaluating potentially economically viable renewable resources to add to the railbelt generation portfolio. 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 The grant budget form is attached. AEA11-005 Grant Application Page 11 of 12 7/21/2010 /Z� ALASKA Renewable Energy Fund Grant Application Round IV SECTION — 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 Signature Title �2S�oT Date AEA11-005 Grant Application Page 12 of 12 7/21/2010 /Z� ALASKA Renewable Energy Fund Round 4 ENERGY AUTHORITY project Cost/Benefit 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. S a *76 Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) RFA AEA11-005 Application Cost Worksheet Page 1 7-21-10 ALASKA Renewable Energy Fund Round 4 / ENERGY AUTHORITY Project Cost/Benefit Worksheet 4. Project Cost a) Total, capital cost of new system S J DO , DOO b) Development cost ?� p p� 0.00 c) Annuaf:0&M cost of new, system L (; o, OO O d) Annual; fuel cost N� N 6. Power Purchase/Sales Price a)' Price .for, power purchase/sale (a, I D 41 kwt� 7. Project Analysis a) r9asic Economic Analysis Project benefittcost'tbtio q , S I CDOO o ,`bbo',a�d Payback,(years) RFA AEA11-005 Application Cost Worksheet Page 2 7-21-10 Q i Q p® ® o 0 0 0 0 p � IT 60- 61) W 61> E» E» 60- E» E» 6c> W- E» Q» 6� Q� e� V� Q� 6� F» r 2 d L C 2 (1)0)d 2 a omWo �V�sI _ 2 o BYO_ 4)LL C L o ca O � 0 _ M M M Ln (f? 6F) Hg 69 b% "a 69 11 .1 6 EA Ef} 6% 6% 6% Ef} Ei} G g Q a� 0 Q Q 0 0 o O E Q 10 K} to fA tf} EA EA (a 6%EPr [�? Ef} ER EPr EA W,EA to c C _ U 'o Lj a o co O .ate N r w CA- d 013) �o �b a U U - � — �' °.�� N m a� CL ' _ z cp J C) 06 in = Q 0 c06 N�� oG _ — CD _ �U m L_ 0 (`6 w (6 O CO)UO L O a. c m CD 0 72 U) ca a) fL (D U C fd U N m C C O U m a) c� a U a) O U f� a) _O N a) t N Y O c6 cc CL a) -a N -a � C U ca C U � a) a) O Q c co a O U � t6 Q 70 ��1 RESOLUTION 2010-02 Be it resolved by the Managing Members of LLC: BERING PACIFIC ENGINEERING, LLC WE that, - BPE shall apply for a grant through the Alaska Energy Authority for a reconnaissance study of the Eska Creek Hydroelectric Project, and that - BPE will provide the matching resources for project at the match amounts indicated in the application. - Daniel Hertrich has the authority to commit the organization to the obligations under the grant. - Daniel Hertrich is the point of contact to represent the applicant for purposes of this application. - BPE is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. 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