Loading...
HomeMy WebLinkAboutTurnagain Arm Tidal aea grant finalRenewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 1 of 119 7/21/2010 AIDEA TURNAGAIN ARM TIDAL ELECTRICAL GENERATION PROJECT TATEP TURNAGAIN ARM TIDAL ENERGY CORPORATION (TATEC) 09/15/2010 Contact: Dominic Lee Tammie Smith Address: 821 N St., Suite 207 Anchorage, AK 99501 Tel. 907-277-6249 FAX 907-277-3300 E-Mail:turnagainarmtidal@ak.net Website:littlesu.com Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 2 of 119 7/21/2010 TABLE OF CONTENTS Grant Application (Section 1-Section 9)………………………………………………..3 –25 Resumes (Section 3.1 & 3.4) ……………………………………………………….….26 –44 Cost Worksheet (Section 4.4.4)…………………………………………………….….45 -47 Grant Budget (Section 9).……………………………………………………………....48 –80 Construction Schedule (Section 3.2)……………………………………………….….81 –89 Letters of Local Support (Section 8)……………………………………………………90 –105 Maps and Turbine Design .……………………………………………..……………….106 -110 LSCC Licenses……………………………………………………………………………110 -113 Authorized Signers……………………………………………………………………….114-115 Governing Body Resolution (Section 1.4)……………………………………….…….116 –117 Certification……………………………………………………………………………….118-119 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 3 of 119 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 AEA 11-005 Application Page 4 of 119 7/21/2010 SECTION 1 –APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Turnagain Tidal Energy Corporation (TATEC) Type of Entity: Independent Power Producer Mailing Address 821 “N” St., Suite 207 Anchorage, AK 99501 Physical Address 821 “N” St., Suite 207 Anchorage, AK 99501 Telephone 907-277-6249 Fax 907-277-3300 Email turnagainarmtidal@ak.net 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Dominic Lee, P.E. Title President and CEO Mailing Address 821 “N” St., Suite 207 Anchorage, AK 99501 Telephone 907-277-6249 FAX 907-277-3300 Email turnagainarmtidal@ak.net 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 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. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 5 of 119 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) Type in your answer here and follow same format for rest of the application. Turnagain Arm Tidal Electrical Generation 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. Answer here. Turnagain Arm in an area between Anchorage and Point Possession and south of Fire Island (See Map, p.107.) Communities that will benefit will include all customers of participant electrical companies on the existing or future electrical grid along the railbelt area from Homer, AK to Fairbanks, AK, including municipalities of Anchorage, Kenai, Soldotna, Homer, Seward, Palmer, Wasilla, and Fairbanks, AK.(See Map, p. 108.) 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river X Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources X Hydrokinetic (Tidal) 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 Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The Turnagain Arm Tidal Electrical Generation Project (TATEP) consists of the installation of patented and proven Rance tidal electrical generation turbines housed in a barrage located in Cook Inlet.(See Map, p. 107.)TATEP is modeled on the La Rance tidal electrical generation plant built at La Rance, Brittany, France in 1966 at a cost of $88 million. The turbines are housed in a barrage approximately one-half mile long.(See illustration, p. 109, 110.)The tidal electrical plant has been in operation since 1966, with 240 MW of electrical capacity. The plant produces electricity at 1.2¢ / kWh to France’s consumers. There have been no mechanical breakdowns in 44 years with normal maintenance. The Rance turbines work in areas with at least 80 ft. of water at high tide and 54 ft. low tide, similar to Turnagain Arm tides.TATEP Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 6 of 119 7/21/2010 turbines will be housed underwater horizontally and will turn the same direction on incoming and outgoing tides with generators located on top of the barrage.Specific sites of the turbines will be selected after further research into environmental, hydrodynamics of tides and water movement. The La Rance plant has twenty-four 10 MW generators for a total of 240 MW. TATEP’s plan calls for fifty to one hundred twenty 10 MW generators which would produce 500 MW to 1200 MW net electricity.The project will be developed in stages. The first stage calls for 50 turbines which would be sufficient to provide 500 MW net electricity:100%of the baseline demand currently in the railbelt region.Cost of the project at that point would be $1.5 billion instead of $2.5 billion.At that point, tidal power would be used in combination with utilities’ current gas turbines, wind,coal,and hydroelectric power for the peak demand and slack period. The tidal electrical production can be expanded as needed over time by adding more turbines. Turbines will be connected by transmission lines;and submarine cable will bring the electricity produced to Chugach Electric on the Anchorage side and to Homer Electric on the Kenai side, accessing existing utility corridors as much as possible to produce inexpensive electricity to Alaska Railbelt consumer.The project is priced for all stages to be built:however, the first stage would produce enough electricity to be competitive with hydroelectric, geothermal, natural gas, and other renewables. 2.5 2.6 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) Electricity produced by the project will be available for purchase by all the electric utilities in the railbelt area at a rate between 6¢ to 8¢ per kilowatt hour, which will reduce the cost of electricity to railbelt consumers by 50% to 67% and will benefit the 70% of the Alaskan population who live in this area. (See Map, p. 108.) After the debt service is paid in 20 years, the cost to the consumer will be as low as 1.2¢ per kWh, similar to the cost of electricity from the La Rance tidal plant. The project will require no fuel, is renewable, and produces no greenhouse gas emissions or CO₂, replacing the use of natural gas and solving the problem of shortage of natural gas in the railbelt area. Building a natural gas pipeline to Prudhoe Bay will increase by 100%the cost of energy in the railbelt region, while the TATEP will reduce cost of energy to the region. The installation costs are $1200/kW. Electricity could be sold to railbelt utilities as low as 6¢ to 8¢ per kWh, lower than the current cost of fuel. The average cost for electricity for a home in the Anchorage area at 750 kWh/month is $120. at 16¢/kWh and in Fairbanks is $180. at 24¢/kWh. Monthly electrical bills for an average house would be reduced to $45.at 6¢/kWh.For a 1.2¢/kWh, the cost of electricity per household is about $9.00/month. 2.7 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. TATEC is soliciting funds from potential investors to fund some of the tasks in the Feasibility Study, the Preliminary Engineering Design, and the Federal Energy Regulatory Commission permitting as well as finalizing application for land lease from the Alaska State Department of Natural Resources. The project is expected to cost $2.5 billion in 2010 dollars. The PAD funding will come from selling stock in TATEC and from grants from state and federal sources. Twenty percent of the Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 7 of 119 7/21/2010 construction cost ($500,000,000.) will be funded by Singa Mas Investments Holding Ltd. of Singapore as agreed in an MOU. TATEC will apply for a loan guarantee from the U.S. Department of Energy for 80% ($2.0 billion) for construction of the project. TATEC is asking for $2,000,000. from the Alaska Renewable Energy Fund Grant, Round 4, for parts of the Feasibility Study.(See Grant Budget, p.48-80.) 2.8 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.$2,000,000. 2.7.2 Other Funds to be provided (Project match)$0 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)$2,000,000. Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.4 Total Project Cost (Summary from Cost Worksheet including estimates through construction) $2,500,000,000.00 2.7.5 Estimated Direct Financial Benefit (Savings)$359,400,000.00/yr 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.) $Elimination of 100 million tons of CO₂, SO₂ emission to the atmosphere. 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. Dominic S.F. Lee, P.E. (See Resume, p.27-28.) Contact Information: Address: 821 “N” St., Suite 207 Tel.: 907-277-6249, 907-274-7571 Anchorage, AK 99501 FAX: 907-277-3300 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 Spread Sheet for a schedule of the entire project over the period from 2009-2018.(See p. 81-89.) The funds requested will be used for the Feasibility Study. (See specific tasks and allocation of RE funds and TATEC/Other on p.52-63 of Budget; and p. 85-88 of Project Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 8 of 119 7/21/2010 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.) See Schedule, p.81-89. 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. TATEC has completed the Reconnaissance Phase and has received a FERC Preliminary Permit in February 5, 2010 for the project. We will use the funds from the Renewable Energy Fund to develop the Preliminary Application Document which will be done concurrently with the engineering feasibility study. Electricitè de France is currently assisting the TATEC engineer to solve engineering design questions and develop the overall preliminary engineering design. A representative from TATEC will be visiting the La Rance power station in France in September, 2010, and will meet with the engineering team there to discuss strategies for the TATEP. Jim Holeman of the Louis Berger Group International is acting as Director of Preparation of the Pre-Application Document and Notice of Intent to File with the Federal Regulatory Commission. He is in charge of the oversight of sub-consultants to prepare studies, perform research, and arrange for meetings with stakeholders as required by the FERC licensing process. He is also in charge of activities for Public Relations and stakeholder meetings. An MOU has been signed with Cook Inlet Rock Quarry to provide 15 million cubic yards of granite boulders to build a 1 to 2 mile barrage. In the later stages, TATEC plans to engage a national engineering firm. TATEC management team has held a meeting with both CH2M-Hill and Fluor, USA, and both have expressed an interest in being involved in the engineering for the project. Arrangements will be made with one or both for the engineering and construction phases. In Phase 4, TATEC plans to engage a nationally recognized company as a General Contractor who will build the project. As yet, no final decision has been made on a General Contractor for the project. TATEC has held several meetings with Fluor USA in the last 18 months. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. TATEC currently submits a semi-annual report to FERC, to ADNR, Corps of Engineers, Coast Guard, and will send a copy to Alaska Energy Authority, along with any other information required by AEA. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 9 of 119 7/21/2010 3.6 Project Risk Discuss potential problems and how you would address them. Questions about the effect of tidal turbines in Turnagain Arm on fish and sea mammals, especially Beluga whales,will need to be addressed. A thorough review of existing studies will be done by a qualified scientist. Mitigation will be planned, especially for any specially designated species. Horizontal turbines are designed to turn very slowly (2.4 sec/revolution) and to allow fish to pass through with an opening of 25 ft. in diameter. A guard will be placed on both sides of the turbine so that large sea mammals cannot go into the turbine.Fifty (50) 30 ft. x thirty ft.(30’ x 30’)slot gates near the turbines will allow the large sea mammals and whales to pass through.Experimental tests will be designed for the site to examine how fish and sea mammals are likely to behave near the turbines.At the present time, we are aware of Cook Inlet beluga whales listed as endangered under the ESA. We are also aware that they have been observed to feed near the mouth of 16 Mile Creek just south of Possession Point, and that they have been observed to follow the tides for feeding to that area. We will need to provide mitigation for potential harm or harassment of marine mammals.In addition, the potential citing of Upper Cook Inlet as a critical habitat for Cook Inlet Beluga whales may put greater restraints on what can be done in the area. In any event, TATEC has made the National Oceanic and Atmospheric Administration aware of the project plans. Kate Savage of National Marine Fisheries Services, Protected Resources/marine mammal issues, and Susan Walker for Habitat Conservation/fish issues have been assigned to work with TATEC on this project. The project also has many slot gates, to allow fish and whales swim freely in and out of the project area. Silt seems to be a concern to many in the public, although it is unclear what adverse reactions are feared. Experimental tests will be designed and performed to determine how patterns of movement of silt and sediments in the inlet will impact the use of tidal turbines in the inlet. Because the turbines are located deep under water, the silt may prove to be less of a problem than it is in the more shallow areas. According to the State of Alaska Division of Oil and Gas, Department of Natural Resources, “Most of this sediment is deposited on the extensive tidal flats or is carried off shore through Shelikof Strait and eventually deposited in the Aleutian trench beyond Kodiak (AEIDA, 1974:109). (http://www.dog.dnr.state.as.us/oil/products/publicaations/cookinlet/cia1999_final- finding/chap2.htm(5 of 19) [11/2/2009] In any event, this issue will be thoroughly studied and mitigation of drifting sediment or interference with moving parts will be applied to deal with any problems observed. For example dredging or use of pressured high velocity air can be used to disperse silt from settling near the turbines and flush it into the ocean. Slack time is another concern. It is unclear at this time to what extent water will still be in motion during slack time in the area designated and how much current will be needed to turn the turbines. If there is not enough water movement during slack time, TATEC will look into the possibility of retention of water to be used during slack time so that there will be no interruption of power during slack time.The other solution is to let the existing utilities with gas-fired power plants ease the slack period since they are using the same equipment to generate electricity for the peak period power consumption already. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 10 of 119 7/21/2010 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. Turnagain Arm of Cook Inlet has the fourth highest tide in the world with 26 to 30 ft.between low tide and high tide.TATEC would use only tidal energy, and the energy is not only inexpensive, it is free, constant, completely predictable, renewable, unending, and produces no greenhouse gases whatsoever. Other renewable energy projects such as wind turbines will produce only a fraction of the power that can be produced by tidal power.According to the Alaska Railbelt Regional Integrated Resource Plan (RIRP) Study by Black and Veatch, commissioned by the Alaska Energy Authority (February 2010), “the capacity of the Turnagain Arm tidal project significantly exceeds the Railbelt loads.” (10-31)The first stage of the TATEP (50 turbines) would provide 100% of the baseline demand and gas turbines, hydroelectric, wind, and other renewable could provide the extra power needed for peak periods. Compared to natural gas, the source of energy in use presently, tidal energy produces no greenhouse gases, is abundant, renewable, and utterly predictable. At the present time, natural gas is in short supply in the Alaska rail belt region, and a 30 in. pipeline to bring natural gas from producers in Prudhoe Bay would cost at least $11 billion, and natural gas would cost at least double the present cost, making the cost of natural gas prohibitive.(Richard Mauer. “State Would Be on Hook for Some Gas Pipeline Costs.”Anchorage Daily News, August 9, 2010.)TATEP provides another advantage in that it would be less likely to be affected by seismic activity, and the results would be less dire than those that could be experienced in flooding from a hydroelectric dam project, because tidal turbines could be replaced more easily than repair of a large hydroelectric dam and would produce no danger to humans. The location of turbines beneath the deepest part of the inlet (See Map, p.107.) with buried cables and a minimum of visible components located on a barrage will not interfere with aesthetic views of the inlet. There are few recreational or commercial fishing activities in the deepest part of Turnagain Arm. The bore tide that makes Turnagain unfriendly for recreation would be put to useful purpose and the aesthetics of the inlet would be preserved. The potential extent of tidal generated power was stated by AK Railbelt Regional Integrated Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 11 of 119 7/21/2010 Resource Plan (RIRP, Feb. 2010) by Black and Veatch Engineering Co., as being 1000 MW at low tide and 2750 MW at high tides in Turnagain Arm. (Black and Veatch 10-31) Black and Veatch also projected the total capital investment required for various scenarios with Susitna hydroelectric would vary from $7.719 billion to $18.8 billion. (RIRP, Feb. 2010, 13-12) While TATEP was considered to have an “extremely high capital cost” (AEA Renewable Energy Fund Round III Application Evaluation, January 14, 2010), it is by far lower than that of scenarios using Susitna hydroelectric alone or in conjunction with other proposed projects projected by Black and Veatch (RIRP,Feb. 2010, 13-12) .The Rance turbines that have been in service for 44 years would be considered commercial. While tidal energy may be considered an emerging technology in the U.S. because there has been little progress in electrical production in the past 40 years, tidal has been in use in other places around the world and is actually not a new technology, but is proven by success, especially at La Rance. 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. UTILITY CO GENERATION PEAK CAPACITY GENERATION BASELINE CAPACITY CHARGE/Kwh FUEL USE Chugach Electric 480MW 240 megawatts 16¢/kW h Gas Matanuska Electric 0 (Purchase CEA) 0 16¢/kW h 0 Anchorage Municipal Power &Light 183 MW 100 MW 13¢/kW h Gas Homer Electric 90 MW 50 MW 24¢/kW h Gas Golden Valley Electric 223 MW 120 MW 15¢/kW h Coal Ft. Wainwright (US Army) 20 MW 10 MW N/A Coal Seward Electric 50 MW 25 MW 16¢/kW h Coal Total *1046 MW 545 MW *CO₂Emissions for 1048 megawatts create an estimated 100 million tons of CO₂per year. The rail belt region utility companies have not installed new plants for generating electricity. The G.E. and Solar Turbines they are using are 30 to 40 years old and are at the end of their useful life. The baseline generation is about 545 MW capacity, and at peak power, the capacity can go up to 1,046 MW capacity. The efficiency is low compared to the new turbines. To replace the old models with newer models would cost approximately $1.3 billion. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 12 of 119 7/21/2010 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. At the present time, the railbelt area utilities are using natural gas and coal for electricity production. Most homes in the area use natural gas for home heating and some appliances through natural gas lines to homes in the municipalities of Anchorage, Palmer, Wasilla, Kenai, and Soldotna. Fairbanks uses primarily coal.Natural gas in the railbelt area comes from Cook Inlet and Kenai area, but is becoming rapidly depleted and expected to run out in 5 years. The oil companies who control the gas wells in Cook Inlet are exporting 350,000 tons annually to Japan in LNG, which is further accelerating the depletion of gas field reserves. The proposed bullet line to Prudhoe Bay would cost a minimum of $9 billion to $11 billion, and the cost of gas would triple the current price of gas due to debt service on the pipeline and cost of transportation. The price of electricity to utilities and customers would increase significantly. Any federal carbon tax would add to the cost. The debt service on $11 billion at 7% interest bond for 20 years is $630 million per year. Fuel cost, operation, and maintenance of the line is another $807 million per year. The cost would be prohibitive to customers. Coal is used in Fairbanks, Ft. Wainwright Army Base, Eielson Air Force Base, and Seward Electric. However, if cap and trade legislation is passed by the Federal Government, cost will go up due to taxation of utilities. Coal is increasingly seen as undesirable because of greenhouse gas emissions and it also damages the clean air of Alaska and causes health problems in Fairbanks residents. Tidal energy is renewable and does not produce emissions. It has no fuel cost or transportation cost. Once in place, a tidal energy electrical generation plant could provide cheap energy for the rail belt region indefinitely. Under the TATEP plan, the existing energy resources of the six rail belt utilities would be used for peak power production while the TATEP power will be used as a rail belt base line 500 to 600 MW to make up the 1046 MW peak power need. The extra power generated by TATEP would be sold to other industries such as mining, iron and aluminum refining, other petrochemical industries, and military bases. TATEC has met with Matanuska Electric and Chugach Electric to introduce the utilities to TATEP and has met with a great deal of interest.Conversations with Homer Electric and Seward Electric have also been encouraging. Mr. Robert Day told the TATEC President that Homer Electric would buy all the electricity they need for 7.5¢/kWh all year round in order to give the least expensive rate to co-op members. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Existing Energy Use and its Market. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 13 of 119 7/21/2010 The existing rail belt is powered by natural gas and coal. It is a 500 MW baseline electricity production. The market is presently too small to justify a large expenditure for energy such as that required for a bullet line to Prudhoe Bay.All the scenarios using Susitna Hydroelectric with a presumption of continued natural gas and potential combinations with renewable energy projects assume a significant increase in price to customers. (Black and Veatch, RIRP Feb. 2010, Table 13.1, 13-12.) Impacts of TATEP on energy customers 1. Customers in the rail belt area where 70% of the state’s population live will benefit tremendously with cheaper electricity provided by tidal electricity production. At 6¢ to 8¢ per kilowatt hour, the current customer electricity bill will be reduced by 50% to 60%. 2. The use of tidal energy would solve the current dilemma of a natural gas shortage in the rail belt area. At the same time, the use of tidal energy in this region would free the State of Alaska, pipeline owners, and natural gas producers to export natural gas instead of developing a prohibitively expensive pipeline system to service a small number of customers in the rail belt region. Natural gas could continue to be developed in the rail belt region for backup use and peak power use, while excess could be used for heating homes and exportation. 3. Rail belt customers might choose to switch from a natural gas boiler to an electric boiler for home heating (if they have hydronic heating systems) which will ease the demand for natural gas in the rail belt region and eliminate the necessity to build an expensive bullet pipeline to Prudhoe Bay. 4. Cheap electricity will energize the state’s other industries such as mining, petrochemical, and other industries with heavy electricity usage. 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 4.3 Proposed System Turnagain Arm Tidal Energy Corporation received a Preliminary Permit for the Turnagain Arm Tidal Electrical Generation Project (P-13509)from the Federal Energy Regulatory Commission on February 5, 2010.TATEP was assigned the requested area of Turnagain Arm of Cook Inlet Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 14 of 119 7/21/2010 that is between Anchorage and Possession Point and south of Fire Island.(See Map, p. 107.) This area of Turnagain Arm is conducive to development of a tidal project, as it has areas with enough depth and swiftness of tide, and at the same time, it is outside the major shipping routes and recreational boating preferences. The location of the project will be as follows: USGS Quad Map:A-1, A-2, A-8, D-1, D-2, D-3, D-4, D-8 LATITUDE /LONGITUDE A.W150˚-28’0”N61˚-0’-48” B.W150˚-28’-0”N61˚-2’-12” C.W150˚-20’-0”N61˚-7’-12” D.W150˚-10’-0”N61˚-7’-12” E.W150˚-4’-10”N61˚-9’-48” F.W150˚-3’-0”N61˚-8’-48” G.W150˚-10’-0”N61˚-0’-0” H.W150˚-17’-0”N61˚-0’-0” I.W150˚-23’-0”N61˚-2’-26” J.W150˚-28’-0”N61˚-0’-24” K.W150˚-15’-0”N60˚-46’-12” Transmission lines will be buried in the inlet floor and across the tidelands leading to Campbell Point and to a utility corridor on the Kenai side. (See Map, p. 107 .) Once on shore, transmission lines will be placed in utility corridors on transmission towers both on the Kenai side of the inlet leading to a switch yard for connection to Homer Electric;and to Chugach Electric on the Anchorage side.La Rance horizontal two-way underwater turbines manufactured by Electricité de France which have been in use since 1966 will be used in the project.(See illustration and photo, p. 109, 110.) Transmission lines will be buried in the floor of the inlet leading from the turbines. Electricity will be collected from all the turbines and transmitted by a buried transmission line for approximately 9 miles to Campbell Point where a control building will be located and then to 5601 Electron Drive in Anchorage. A buried transmission line will also run to a control building on the Kenai side of the inlet. (See Map, p. 108.) From the Kenai control building, transmission lines will run to the nearest substations at Nikiski (about 50 miles) in utility corridors. A control building near Possession Point in Kenai Borough on Kenai Peninsula Borough land near the inlet will control the turbines and the intertie of transmission line to existing grids and the electrical substation grid. (See Map, p. 107, 108.) A second control building will be built somewhere along Raspberry Road in Anchorage.The control buildings are expected to be 100’ X 60’, two-story, 12,000 sq. ft. buildings to accommodate 10 workers, three shifts. All electric lines will run from the tidal fence to Homer Electric on the Kenai side and to Chugach Electric on the Anchorage side. (See Map, p. 107.) The generators will be direct drive DC generators, and will be conditioned to the appropriate AC power onshore. A switch yard will be built to connect and disconnect electricity produced by the tidal bridge to the existing power grid. The control building will be staffed to control the entire project operation. On the Kanai side, the Kenai Peninsula Borough has allotted a 300 ft. utility corridor adjacent to an easement for a roadway to be built along the inlet in the future. Currently, a trail exists on the easement which will be used as a service road to the control building and tidal fence. The Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 15 of 119 7/21/2010 coastal area below Possession Point and running along the coast to Nikiski and Kenai is owned by the Kenai Peninsula Borough. (See Map 107.)The transmission line will be built within this corridor,running approximately 52 miles along the coast to the unincorporated community of Nikiski, located at Point K (See Map, 108.) approximately N60˚-46’-12” North Latitude and W150˚-15’-0”West Longitude. Nikiski is located in the Kenai Recording District, about 18 miles north of Kenai on the Kenai Spur Highway. The transmission line will tie into Homer Electric grid at the Homer Electric Association substation near Nikiski, making the transmission line 52 miles long from the tidal fence on the Kenai side. On the Anchorage side of the tidal platforms, the transmission line will be laid under the inlet for 9 miles and built across the Pt. Campbell area of Anchorage along Raspberry Rd. for 10 miles to the substation of Chugach Electric at 5610 Electron Dr. The transmission line will be approximately 19 miles long. A loop between Chugach Electric and Homer Electric will be created by the transmission lines. Altogether, the transmission line will be 71 miles long. The corridor for the transmission line on the Kenai side of Cook Inlet is adjacent to the Kenai National Wildlife Refuge and Alaska Native Claims Settlement Act (ANSCA)land of Cook Inlet Regional Corporation on Possession Point and along the western side of the Kenai Peninsula Borough coastal land. However, the transmission line itself will run within Kenai Peninsula Borough utility corridor. The transmission line on the Anchorage side will run across Anchorage State Coastal Wildlife Refuge. It is expected that the transmission line will be buried. The connection between Homer Electric Association and Chugach Electric will create a loop with the existing transmission grid that crosses the Chugach National Park and the Sterling Highway. At the Chugach Electrical Association’s Engineering Department’s suggestion, the transmission line voltage shall be 230 KV and transmission lines will be built in pairs for redundancy.The State of Alaska Energy Authority is currently asking for a proposal to build a 230 KV railbelt grid line from Homer to Fairbanks. The transmission line from the Turnagain project will tie into Chugach at Anchorage to feed electrical power into the Alaska state railbelt grid to be built in the near future. Land Ownership The land under the inlet is owned by the State of Alaska.TATEC is in the process of filing a lease application with the Alaska Department of Natural Resources.It is anticipated that TATEC will obtain a 3-year permit which will allow TATEC to perform tests and research of the inlet area. The area actually to be used for the TATEP project will be more precisely identified so that only the specific areas used will be leased when the engineering is completed. Permits TATEC has begun the process of obtaining approval, licensing, or permits for the project. TATEC has received a preliminary permit from the Federal Energy Regulatory Commission.and has completed the application process for the permit the satisfaction of the agency. TATEC is currently working on the Notice of Intent to File and a Preliminary Application Document leading to a final application for a license from FERC,a process which will take at least two years. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 16 of 119 7/21/2010 TATEC has also filed a Questionnaire and Certification Statement with the Alaska Department of Natural Resources and has held a meeting with all the agencies concerned with this project, in a pre-review assistance meeting with both those at the State and Federal l evel.TATEC is continuing to work with DNR to provide additional information leading to a final review of our application. Permits or approvals from the State of Alaska will include the following: 1. DNR Lease Agreement on Project Site 2. DNR Agencies Approval of the Project Division of Coastal and Ocean Management Division of Mining, Land, and Water –Land Section Department of Fish and Game DEC Division of Water 3. Municipality of Anchorage Coastal Coordinator 4. Kenai Borough Coastal Coordinator 5. State Historic Preservation Office Permits, waivers, or permission from the U.S. Federal Government will include the following: 1. Corps of Engineers 2. U.S. Coast Guard 3. Federal Energy Regulatory Commission 4. National Marine Fisheries Services 5. U.S. Department of Interior 6. Bureau of Land Management 7. Federal Aviation Administration 8. U.S. Environmental Protection Agency 9. U.S. Fish and Wildlife Services Environmental Issues The greatest environmental issue we are aware of at this time is the need to mitigate for Cook Inlet Beluga whales which have been listed as an endangered species under the ESA and recently have been reported to continue to decline in population. We will need to mitigate against any harm or harassment of marine mammals or fish. 4.3.1 System Design A description of renewable energy technology specific to project location. The La Rance two-way underwater turbine is a 10 megawatt size two-way turbine designed to work specifically with high tidal energy such as that characteristic of Turnagain Arm which has been identified as a prime location for this technology. The turbines and the entire technology will be modified to meet specific conditions and environmental challenges in the specific location as further research is completed and the exact sites are confirmed by investigation of tidal flows and other conditions. The technology will be custom engineered and modified for the specific site as more information is developed. Maximum installed Capacity For 120 10-megawatt EDF Turbines, the TATEP will have a total of 1200 megawatt generating Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 17 of 119 7/21/2010 capacity. Anticipated annual generation 1,200 MW X 24 hours/day X 365 days/year = 10,312,000,000 000 W = 10.312 trillion watts/year. Anticipated barriers Fish and marine mammals, mitigation for beluga whales will be essential. Basic integration concept The electricity produced by the EDF La Rance tidal Turbine will be transmitted to land by submarine cables; then transmission towers will lead to the switch yards of utility companies and tie into the existing grids and delivered by existing utilities.Transmission line will go to both CEA and HEA and from there, transmission by existing grid. 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. TATEC is preparing a Lease Application to Alaska Department of Natural Resources. It is anticipated that TATEC can obtain a permit for testing and exploration in the area designated and licensed by FERC, restricted to use of testing equipment that can be removed from the inlet within 24 hours. After permitting process and engineering are completed, TATEC expects to lease the specific land used 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 Permits or approvals from the State of Alaska will include the following: 1. DNR Lease Agreement on Project Site 2. DNR Agencies Approval of the Project Division of Coastal and Ocean Management Division of Mining, Land, and Water –Land Section Department of Fish and Game DEC Division of Water 3. Municipality of Anchorage Coastal Coordinator 4. Kenai Borough Coastal Coordinator 5. State Historic Preservation Office Permits, waivers, or permission from the U.S. Federal Government will include the following: 1. Corps of Engineers 2. U.S. Coast Guard 3. Federal Energy Regulatory Commission Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 18 of 119 7/21/2010 4. National Marine Fisheries Services 5.U.S. Department of Interior 6. Bureau of Land Management 7. Federal Aviation Administration 8. U.S. Environmental Protection Agency 9. U.S. Fish and Wildlife Services TATEC received a Preliminary Permit from the Federal Energy Regulatory Commission in February, 2010 for the Turnagain Arm Tidal Electrical Generation Project (P-13509).Information on this project can be viewed on-line at the FERC website.(https://www.ferc.gov/docs- filing/elibrary.asp) The other Federal agencies (Corps of Engineers, Coast Guard, National Marine Fisheries) have said they see FERC as the lead agency and will follow their lead. The next phase of the FERC process, the preparation of the Preliminary Application Document will answer a great many of the questions for both the Federal and State agencies, as a survey of all available information on environmental, historical, and geological along with preliminary engineering design is being done. TATEC hopes to have a temporary Land Lease from ADNR by December 2010 which will allow TATEC to do research and investigation in the same area as that designated in our FERC Preliminary Permit with a permanent lease to be issued before construction. 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 Threatened or Endangered species Cook Inlet Beluga whales have been listed as threatened by ESA. Scientific literature and recent research and project reports on fish and whales in the inlet will be evaluated by biologists and integrated with engineering plans.TATEC will work with National Marine Fisheries Services to meet the standards for protecting the threatened species as well as other important species in the inlet. Habitat issues Habitat issues will be identified in the process of researching existing literature on the inlet and further research indicated by the results. A specialized consultant will be hired for this task. Mitigation plans for any identified habitat issues will be coordinated with State, Federal, and engineering designers to avoid or mitigate issues that are identified. Reports will be prepared for the PAD for application for the FERC license.TATEC has made the National Oceanic and Atmospheric Administration aware of the project plans. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 19 of 119 7/21/2010 Kate Savage of National Marine Fisheries Services, Protected Resources/marine mammal issues, and Susan Walker for Habitat Conservation/fish issues have been assigned to work with TATEC on this project. Wetlands and other protected areas TATEC anticipates minimal disturbance of coastal wetlands with the burial of submarine cable. This will be done in a 3 ft. deep trench across wetlands on both the Anchorage and the Kenai side. The work will be planned in coordination with the borough coastal planners and DNR to avoid any disturbance of protected species of plants or animals. An investigation of affected wetlands will be done by specialized consultants in preparation of the PAD for the application for the FERC license and information will be used in the engineering plans to mitigate for any potential hazards. Archaeological and historical resources A historical archeologist will research Native activity in the areas involving the project and will address the issues discovered in planning and engineering design and construction. Land development constraints The major portion of the project is located in the water, and involves a land corridor for transmission lines.TATEC plans to use existing utility corridors for transmission lines. The land underlying the inlet is controlled by the State of Alaska, and TATEC is applying to the State for a lease for the specific land used. There will also be two control buildings: one located in the Municipality of Anchorage and the other in the Municipality of Kenai. Telecommunications interference The project would not interfere with telecommunications. Existing phone services would be used to communicate with the project site in the inlet. Aviation considerations The project will not interfere with aviation. The tallest transmission line will be about 40 ft. above ground which is within FAA guidelines. Visual, aesthetics impacts Because the location of the project will be at a distance of several miles from the shore, and the turbines will be under water with only the platform about 10 ft. above the high tide level, the site will not be noticeable from the coastline, and the aesthetics of the inlet should not be altered. Identify and discuss other potential barriers We are not aware of any other barriers. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 20 of 119 7/21/2010 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 4.4 Proposed New System Costs and Projected Revenues Costs include use of construction cost data catalogue, manufacturer’s estimate, preliminary engineering analysis. Estimated total cost is $2.527 billion. Projected revenues are $840,960,000/year at 8¢/kW hour. 4.4.1 Project Development Cost Phase Estimated Cost Permitting, Feasibility Study $ 3,000,000.00 Engineering Design $ 200,000,000.00 Capital Finance Cost $17,000,000.00 Construction $2,300,000,000.00 Total $2,520,000,000.00 Requested grant funding $2,000,000.00 to be applied to Feasibility Study. Applicant matching funds –loans, capital contributions, in-kind $1,000,000.for permitting, preliminary engineering feasibility study, in-kind. Projected capital cost of proposed renewable energy system The project capital cost of proposed renewable energy project is $2,520,000,000.00 The development cost would be $20 million for the feasibility study and permitting. 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.) Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 21 of 119 7/21/2010 The project operating and maintenance cost is about 1% of the capital cost for a 1200 megawatt power plant.The project would produce 1200 MW X 24 hours/day X 365 days = 10.312 trillion watts per year.(1% of the capital cost per year was suggested by the 2010 Black and Veatch report as the O&M cost for this kind of project.) $2,520,000,000 X 0.01 = $25.2 million per year O & M cost 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 potential power buyers are the six rail belt utility companies; namely, CEA, ML&P, Homer Electric, Seward Electric, Golden Valley Electric, and two military bases in Fairbanks. The potential power purchase price would be between 6¢ and 8¢ per kilowatt hour. For the price of 6¢/kilowatt hour, the return to investors would be about 10%; for 8¢/kWh, the return would be 12.26%. These numbers are based on full operation revenue less operation and maintenance; real estate tax of 2%; Federal tax of 35%; State income tax of 22.5%. The profit after tax on a total investment of $2.520 billion dollars would be $231,642,300. INVESTMENT RETURN CALCULATION PER YEAR AT 8¢/KILOWATT HR Capital Investment $2,520,000,000.00 Revenue per year 840,960,000.00 Less Operation and Maintenance (25,200,000.00) Less 2% Property Tax (50,202,000.00) Less Debt Service (170,040,000.00) *20 Year Depreciation at 5%/year 128,850,000.00 Profit Before Tax 724,368,000.00 Federal Tax 35%<253,528,800.00> State Income Tax 22.5%<162,982,800.00> Profit After Tax $308,856,400.00 $308,856,400/$2,520,000,000 = 12.26% * The 20-yr. depreciation schedule may not be allowed by the IRS and may change to 40 years. ** The investor return may change according to CPA review of what investments are considered. Case 2: Selling Electricity at 6¢/kilowatt hour. Using the same formula to calculate the investment return will yield about 10%. 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. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 22 of 119 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 Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project Calculating the annual displacement of natural gas and coal over the lifetime (20 years) would yield the following: 1200 MW X 24 h/day X 365 days/year X 20 years =10.312 trillion W X 20 years = 206.24 trillion W = 206.24 trillion W X 16¢ per kW/hr = $32,994,400,000. Or $32.99 billion dollars if the natural gas costs $0.16/kW hour Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) Anticipated annual revenue for full production would be as follows: 1200 MW X 24 hr X 365 days X $0.08/kW = $840,960,000. per year Potential additional annual incentives (i.e. tax credits)  At 2¢ per kW hour tax credit, a savings of $210,240,000.would be realized. We hope the State of Alaska S.B. #31 will pass next session for tax relief. Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) The only other additional saving is that the D.O.E. has a low interest renewable energy loan program which will yield savings over a convention bank loan of 14.5% to perhaps 6% which is a savings of $218,450,000.in debt service. If a Federal carbon tax law is passed, this project will provide additional revenue streams, potentially in millions or hundreds of millions of dollars. Discuss the non-economic public benefits to Alaskans over the lifetime of the project The non-economic public benefits for Alaskans over 20 years will be as follows: No emissions of CO₂and SO₂into the atmosphere will eliminate 20 X 100 million tons of CO₂and SO₂that would otherwise be emitted. All Alaskans will breathe easier. It will Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 23 of 119 7/21/2010 save over 200,000 lives if currently, 10,000 Alaskans are dying of lung related sickness. 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 Proposed business structure(s) and concepts that may be considered. The project will sell electricity to six rail belt utilities and mining companies and other heavy electricity using industries such as petrochemical and LNG plants. The annual revenue will cover all the expenses. How you propose to finance the maintenance and operations for the life of the project? In full production, if the electricity is sold at 8¢ per kilowatt hour, it will bring in $840,960,000. Per year. The cost of operation and maintenance will be 1¢ per kilowatt hour or 1%of capital cost or $25,200,000. Per year which will be funded by the project’s income. Identification of operational issues that could arise. The operational issues are similar to those of any utility company: some caused by failure of equipment; some caused by human error. Both can be resolved by training an experienced crew to operate the facility and minimize risk factors and identify potential risks. A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation The six rail belt electrical generation utilities will be used in peak demand and other emergency situations. The existing system will keep on working, but at a lower capacity, or just a few hours per day. Commitment to reporting the savings and benefits TATEP will have an open book and transparency policy to satisfy FERC and State regulatory agencies. Any saving and benefits will be passed along to consumers and investors. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 24 of 119 7/21/2010 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. TATEC has received a Preliminary Permit from the Federal Energy Regulatory Commission. TATEC has a maximum of 3 years to complete the full application process.TATEC has started some preliminary engineering studies and designs.We will move ahead immediately with the PAD and NOI for FERC and the leasing process with ADNR, as well as other analysis. We have also begun initial consultation with the Alaska Department of Resources and are in the process of applying for a lease with DNR. We hope to obtain a preliminary permit from the State of Alaska for the same area described in the FERC Preliminary Permit Application. 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. 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 Local Support: Reactions to the TATEP have been mostly positive, although the plan is not well known at this time. Public relations activities and stakeholders meetings will give the public more information.Forty-nine people signed up to receive a newsletter at the 2010 REAP Fair in Anchorage. The project will create 5000 jobs for five years. Letters of support are found on p.90-105. TATEC has received support from IBEW and AFL-CIO. TATEC has contacted several Native tribes, Tyonic, Haida, and Eklutna. These tribes will also introduce TATEC to CIRI and Sea Alaska. The response from Native groups so far has been very favorable. Possible opposition could come from environmental groups concerned about the threatened Cook Inlet beluga whale population or from competitors who have a different agenda for developing electrical power for the railbelt region. Section 9 –GRANT BUDGET Provide a narrative summary regarding funding sources and your financial commitment to the project. The reconnaissance phase has been completed with funds from TATEC, and this phase has resulted in the award of a Preliminary Permit from the Federal Energy Regulatory Commission and preliminary steps toward permits required from ADNR and federal agencies.TATEC has spent approximately $1 million in direct and indirect costs and in-kind professional fees for the Reconnaissance Phase. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 25 of 119 7/21/2010 The next phase, the Feasibility Phase will use funds obtained by selling stock in TATEC or other partners along with a $2,000,000. Grant from AEA. Grant money will be used for preparing a preliminary Application Document and Notice of Intent to File for a License from the Federal Energy Regulatory Commission, as well as financial and economic analysis; risk management and construction management analysis. A consultant with the Louis Berger Group, Inc. will be enlisted to direct the permitting process. In addition, funds will be used to complete the permitting process with Alaska Department of Natural Resources and other Federal entities with oversight of the environment and lands involved. $180,000. raised by TATEC will be used in the Feasibility for environmental studies, bathymetric studies, engineering studies, conceptual design, and business and economic analysis. TATEC is exploring possible joint ventures with Alaska Native corporations that may wish to invest in the project. For the Design and Permitting Stage and the Construction phase, TATEC will apply for a DOE or other renewable energy program that provides an 80% government construction loan guarantee. Singa Mas Investments Holding Ltd. of Hong Kong, a Singapore based company, will invest 20% of the estimated $2.52 billion project as described in an MOU signed in 2009. See Grant Budget, p. 48-80. 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. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 26 of 119 7/21/2010 - RESUMES SECTION 3.1 and 3.4 AEA 11-005 Application Page 39 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 45 of 119 7/21/2010 COST WORKSHEET SECTION 4.4.4 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 46 of 119 7/21/2010 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.$644,548,000. Profit before Tax. Tidal Power Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2.Existing Energy Generation and Usage a)Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i.Number of generators/boilers/other System will be part of railbelt grid ii.Rated capacity of generators/boilers/other iii.Generator/boilers/other type iv.Age of generators/boilers/other v.Efficiency of generators/boilers/other b)Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i.Annual O&M cost for labor ii.Annual O&M cost for non-labor c)Annual electricity production and fuel usage (fill in as applicable)(if system is part of the Railbelt grid, leave this section blank) i.Electricity [kWh]This system will be part of the railbelt grid. ii.Fuel usage Diesel [gal] Other iii.Peak Load iv.Average Load v.Minimum Load vi.Efficiency vii.Future trends d)Annual heating fuel usage (fill in as applicable) i.Diesel [gal or MMBtu]None, because power is tidal. ii.Electricity [kWh] iii.Propane [gal or MMBtu] iv.Coal [tons or MMBtu] v.Wood [cords, green tons, dry tons] vi.Other 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 47 of 119 7/21/2010 3.Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a)Proposed renewable capacity (Wind, Hydro, Biomass, other) [kWh or MMBtu/hr] Tidal electricity generation capacity is 1200 MW. b)Proposed Annual electricity or heat production (fill in as applicable) i.Electricity [kWh]10.312 trillion Watt hours/year = 10,312,000 kW h/year ii.Heat [MMBtu]0 c)Proposed Annual fuel Usage (fill in as applicable) i.Propane [gal or MMBtu]0 ii.Coal [tons or MMBtu]0 iii.Wood [cords, green tons, dry tons]0 iv.Other 0 4.Project Cost a)Total capital cost of new system $2,520,000,000. b)Development cost $30,000,000. (Including Fed. Loan Guar. Fee) c)Annual O&M cost of new system $25,200,000. d)Annual fuel cost 0 5.Project Benefits a)Amount of fuel displaced for i.Electricity 109.5 bcf/year ii.Heat N/A iii.Transportation N/A b)Price of displaced fuel $840,960,000. (Natural gas) c)Other economic benefits No emission, savings on health care, carbon tax if levied, savings of cost of pipeline to source of Nat. gas d)Amount of Alaska public benefits Savings of 50-60% of fuel costs 6.Power Purchase/Sales Price a)Price for power purchase/sale Electricity will be sold at 6¢ to 8¢/kWh to railbelt utilities 7.Project Analysis a)Basic Economic Analysis Project benefit/cost ratio $2,520,000,000./$644,548,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 48 of 119 7/21/2010 Payback Within four years if utility is non-profit corporation GRANT BUDGET FORM SECTION 9 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 49 of 119 7/21/2010 Milestone or Task RECONNAISANCE Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 1. Project scoping and contractor solicitation.Complete $0 $TATEC $ 2. Resource ID and analysis Complete $0 $TATEC $ 3. Preliminary environmental analysis Complete $0 $TATEC $ Preparation of Lease App. To ADNR Complete $0 $TATEC $ Preparation of FERC Preliminary Permit Complete $0 $TATEC $ Preparation of ADNR Preliminary App.Complete $0 $TATEC $ Preparation of Maps of Site Complete $0 $TATEC $ $$$ $$$ $ $ TOTALS $0 $$0 Budget Categories: Direct Labor & Benefits $0 $0 $0 Travel & Per Diem $$0 $0 Equipment $$$ Materials & Supplies $$0 $0 Contractual Services $$$ Construction Services $$$ Other $$$ TOTALS $$0 $0 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 50 of 119 7/21/2010 Milestone or Task RECONNAISSANCE Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 4. Preliminary design analysis and cost $$$ Prelim.Barrage Design & Eng. Analysis Complete $0 $TATEC $ Prelim. Siting and Length of Transmission Lines Complete $0 $TATEC $ Prelim. Cost Estimate of Project Complete $0 $TATEC $ 5. Cost of energy and market analysis Complete $0 $TATEC $ 6. Simple economic analysis Complete $0 $TATEC $ 7. Final Report and Recommendations Complete $0 $TATEC $ $$$ $$$ $ $ TOTALS $0 $0 $0 Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $$$ Construction Services $$$ Other $$$ TOTALS $0 $0 $0 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 51 of 119 7/21/2010 Milestone or Task FEASIBILITY Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 1. Project scoping and contractor solicitation.Complete $0 $$0 2. Detailed energy resource analysis $$$ Hydrographic Computer Modeling $$$ Computer model tidal regime (existing gauges)6/30/12 $0 $10,000.TATEC/Other $10,000. $0 $$ $0 $$ $0 $$ $$$ $$$ $ $ TOTALS $0 $10,000.$10,000. Budget Categories: Direct Labor & Benefits $$5,000.$5,000. Travel & Per Diem $$1,000.$1,000. Equipment $$3,000.$3,000. Materials & Supplies $$500.$500. Contractual Services $$500.$500. Construction Services $$$ Other $$$ TOTALS $$10,000.$10,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 52 of 119 7/21/2010 Milestone or Task FEASIBILITY Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 3. Identification of land and regulatory issues $$$ ID of specific sites of turbines 12/30/11 $10,000.$0 N/A $10,000. Regulatory issues from ADNR/responses 12/30/11 $10,000.$0 N/A $10,000. $$$ $$$ $$$ $$$ $$$ $$$ $ $ TOTALS $20,000.$0 $20,000. Budget Categories: Direct Labor & Benefits $15,000.$$15,000. Travel & Per Diem $1,500.$$1,500. Equipment $1,000.$$1,000. Materials & Supplies $1,000.$$1,000. Contractual Services $1,500.$$1,500. Construction Services $$$ Other $$$ TOTALS $20,000.$0 $20,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 53 of 119 7/21/2010 Milestone or Task FEASIBILITY Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 4. Permitting and environmental analysis $$$ Preliminary Studies $$$ Assess ocean resources parametrics 12/30/11 $5,000.$0 N/A $5,000. Cross Depths 2/15/12 $10,000.$0 N/A $10,000. Geophysics bottom conditions 6/30/12 $10,000.$0 N/A $10,000. Geotechnical Investigation 6/30/12 $370,000.$0 N/A $370,000. Environmental Impact Assessment 7/15/11 $550,000.$0 N/A $550,000. Examine existing electric grid proximity 10/30/12 $10,000.$0 N/A $10,000. Substation and Switch yard 3/1/12 $10,000.$0 N/A $10,000. $$0 N/A $ $$0 N/A $10,000. TOTALS $965,000.$0 $965,000. Budget Categories: Direct Labor & Benefits $205,000.$$205,000. Travel & Per Diem $10,000.$$10,000. Equipment $20,000.$$20,000. Materials &Supplies $10,000.$$10,000. Contractual Services $720,000.$$720,000. Construction Services $0 $$0 Other $$$ TOTALS $965,000.$0 $965,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 54 of 119 7/21/2010 Milestone or Task FEASIBILITY Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 4. Permitting and environmental analysis $$$ Preparation of PAD, NOI for FERC Geology and Soils 6/30/12 $10,000.$0 N/A $10,000. Water Resources 3/1/12 $10,000.$0 N/A $10,000. Fish and Aquatic Resources 6/30/12 $50,000.$0 N/A $50,000. Wildlife & Botanical Resources 7/15/12 $20,000.$0 N/A $20,000. Wetlands, Riparian & Littoral Habitat 3/30/12 $10,000.$0 N/A $10,000. Recreation and Land Use 4/15/12 $10,000.$0 N/A $10,000. Basin Description 9/30/12 $15,000.$0 N/A $15,000. Tribal Resources 9/30/12 $0 $10,000.TATEC/Other $10,000. Cultural Resources 9/30/12 $ 0 $ 10,000.TATEC/Other $10,000. Sociometric Resources Public Relations 9/30/12 6/30/12 $ 0 $ 0 $ 10,000. $10,000. TATEC/Other TATEC/Other $10,000. $10,000. $125,000.$40,000.$165,000. Budget Categories: Direct Labor & Benefits $10,000.$20,000.TATEC/Other $30,000. Travel & Per Diem $20,000.$5,000.TATEC/Other $15,000. Equipment $10,000.$5,000.TATEC/Other $15,000. Materials & Supplies $5,000.$10,000.TATEC/Other $15,000. Contractual Services $90,000..$0 $90,000. Construction Services $$$ Other $$$ TOTALS $125,000.$40,000.$165,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 55 of 119 7/21/2010 Milestone or Task FEASIBILITY Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 4.Permitting and environmental analysiis $$$ FERC Processing Consultant $$$ Oversight and direction of permitting process 3/30/12 $170,000.$0 N/A $170,000. Arrange, schedule, and direct mtgs of stakeholders 3/30/12 $150,000.$0 N/A $150,000. Filing and communication with FERC 3/30/12 $50,000.$0 N/A $50,000. $$$ $$$ $$$ $$$ $ $ TOTALS $370,000.$370,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $370,000.$0 N/A $370,000. Construction Services $$$ Other $$$ TOTALS $370,000.$$370,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 56 of 119 7/21/2010 Milestone or Task FEASIBILITY Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 5. Detail analysis of existing and future energy cost and market $$$ Accounting 6/30/12 $10,000.$0 N/A $10,000. Public Relations 6/30/12 $10,000.$0 N/A $10,000. Railbelt Utilities existing & future costs 6/30/12 $150,000.$0 N/A $150,000. Railbelt Utilities Market 6/30/12 $100,000.$0 N/A $100,000. TATEP Impact to Railbelt Utilities 6/30/12 $30,000.$0 N/A $30,000. $$$ $$$ $$$ $ $ TOTALS $300,000.$0 $300,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $300,000.$N/A $300,000. Construction Services $$$ Other $$$ TOTALS $300,000.$0 $300,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 57 of 119 7/21/2010 Milestone or Task FEASIBILITY Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 6. Assessment of Alternatives 12/30/11 $50,000.$0 $50,000. 7. Conceptual design analysis and cost estimate $$$ Preliminary Tidal Barrage Design and Engineering Analysis $$$ Thin shell concrete caisson design 3/30/12 $0 $5,000.TATEC/Other $5,000. Foundation Design 6/30/12 $0 $ 10,000.TATEC/Other $ 10,000. Size electrical generators/drive line components 3/30/12 $0 $ 10,000.TATEC/Other $ 10,000. Rotor Design 3/10/12 $0 $ 10,000.TATEC/Other $ 10,000. Ancillary Equipment Design 6/30/12 $0 $ 5,000.TATEC/Other $ 5,000. $$$ $ $ TOTALS $50,000.$ 35,000.$ 35,000. Budget Categories: Direct Labor & Benefits $ 40,000.$ 5,000.TATEC/Other $45,000. Travel & Per Diem $ 3,000.$5,000.TATEC/Other $ 8,000. Equipment $ 2,000.$ 0 $ 2,000. Materials & Supplies $ 5,000.$ 0 $ 55,000. Contractual Services $0 $ 25,000.TATEC/Other $ 25,000. Construction Services $$$ Other $$$ TOTALS $ 50,000.$ 35,000.$ 85,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 58 of 119 7/21/2010 Milestone or Task FEASIBILITY Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 7. Conceptual design analysis and cost estimate $$$ Constructability Study $$$ Seabed Composition 6/30/12 $0 $ 10,000.TATEC/Other $ 10,000. Navigation Clearance 6/30/12 $0 $ 10,000.TATEC/Other $ 10,000. Import large rock/foundation support Turbines 6/30/12 $0 $10,000.TATEC/Other $ 10,000. Bathymetry/hydrographic survey 6/30/12 $0 $ 10,000.TATEC/Other $ 10,000. Piling Installation 6/30/12 $0 $ 10,000.TATEC/Other $ 10,000. Turbine model installation 6/30/12 $0 $ 10,000.TATEC/Other $ 10,000. Connection to existing power grid 6/30/12 $0 $ 10,000.TATEC/Other $ 10,000. $ TOTALS $0 $80,000.$80,000. Budget Categories: Direct Labor & Benefits $$31,000.TATEC/Other $31,000. Travel & Per Diem $$ 5,000.TATEC/Other $ 5,000. Equipment $$ 2,000.TATEC/Other $ 2,000. Materials & Supplies $$ 2,000.TATEC/Other $ 2,000. Contractual Services $$40,000.TATEC/Other $40,000. Construction Services $$$ Other $$$ TOTALS $0 $80,000.$80,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 59 of 119 7/21/2010 Milestone or Task FEASIBILITY Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 8. Detailed economic and financial analysis $$$ Financial Analysis 12/30/12 $50,000.$0 N/A $50,000. Economic Analysis 12/30/12 $50,000.$0 N/A $50,000. Risk Management and Risk Ranking 12/30/12 $50,000.$0 N/A $50,000. Insurance 12/30/12 $10,000 .$0 N/A $10,000. Earthquake effects 12/30/12 $10,000 $0 N/A $10,000. Legal 12/30/12 $50,000.$0 N/A $50,000. Construction Management 12/30/12 $10,000.$0 N/A $10,000. $$$ $ $ TOTALS $230,000.$$230,000. Budget Categories: Direct Labor & Benefits $68,000.$0 N/A $68,000. Travel & Per Diem $10,000.$0 N/A $10,000. Equipment $1,000.$0 N/A $1,000. Materials & Supplies $1,000.$ 0 N/A $1,000. Contractual Services $150,000.$0 N/A $150,000. Construction Services $$0 $ Other $$0 $ TOTALS $230,000.$$230,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 60 of 119 7/21/2010 Milestone or Task FEASIBILITY Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 9. Conceptual business and operations plans 9/30/12 $$10,000.TATEC/Other $10,000. $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $ $ TOTALS $$10,000.$10,000. Budget Categories: Direct Labor & Benefits $$8,000.TATEC/Other $8,000. Travel & Per Diem $$0 $ Equipment $$0 $ Materials & Supplies $$2,000.TATEC/Other $2.000. Contractual Services $$$ Construction Services $$$ Other $$$ TOTALS $$10,000.$10,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 61 of 119 7/21/2010 Milestone or Task FEASIBILITY Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 10. Final Report and recommendations 12/30/12 $$10,000.TATECOther $10,000. $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $ $ TOTALS $$ 10,000.$10,000. Budget Categories: Direct Labor & Benefits $$8,000.TATEC/Other $8,000. Travel & Per Diem $0 $0 $0 Equipment $0 $0 $0 Materials & Supplies $$2,000.TATEC/Other $2,000. Contractual Services $$$ Construction Services $$$ Other $$$ TOTALS $$10,000.$10,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 62 of 119 7/21/2010 Milestone or Task DESIGN AND PERMITTING Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 1. Project scoping and contractor solicitation for planning and design $$$ Solicitation of contractor 9/30/13 $0 $1,000,000.TATEC/Other $1,000,000. Planning and Scheduling 9/30/13 $0 $1,000,000.TATEC/Other $1,000,000. Site Survey 9/30/13 $0 $1,000,000.TATEC/Other $1,000,000. Construction Management 9/30/13 $0 $1,000,000.TATEC/Other $1,000,000. Legal 9/30/13 $0 $5,000,000.TATEC/Other $5,000,000. Accounting 9/30/13 $0 $1,000,000.TATEC/Other $1,000,000. $$$ $$$ $ $ TOTALS $0 $10,000,000.$10,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $10,000,000.TATEC/Other $10,000,000. Construction Services $$$ Other $$$ TOTALS $0 $10,000,000.$10,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 63 of 119 7/21/2010 Milestone or Task DESIGN AND PERMITTING Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 2. Permit applications (as needed)$$$ Legal 12/30/12 $0 $2,000,000.TATEC/Other $2,000,000. Final DNR Land Lease Application 12/30/12 $0 $2,000,000.TATEC/Other $2,000,000. Final FERC Application 12/30/12 $0 $2,000,000.TATEC/Other $2,000,000. Final Fed. & State Agency Permit 12/30/12 $0 $2,000,000.TATEC/Other $2,000,000. $$$ $$$ $$$ $$$ $ $ TOTALS $0 $10,000,000.$10,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $10,000,000.TATEC/Other $10,000,000. Construction Services $$$ Other $$$ TOTALS $0 $10,000,000.$10,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 64 of 119 7/21/2010 Milestone or Task DESIGN AND PERMITTING Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 3. Final environmental assessment and mitigation plans (as needed)$$$ Ocean current tide survey 3/30/13 $0 $2,000,000.TATEC/Other $2,000,000. Ice and winter operation study 3/30/13 $0 $2,000,000.TATEC/Other $2,000,000. Environment Impact Statement 3/30/13 $0 $2,000,000.TATEC/Other $2,000,000. Legal 3/30/13 $0 $4,000,000.TATEC/Other $4,000,000. $$$ $$$ $$$ $$$ $ $ TOTALS $0 $10,000,000.$10,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $10,000,000.TATEC/Other $10,000,000. Construction Services $$$ Other $$$ TOTALS $0 $10,000,000.$10,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 65 of 119 7/21/2010 Milestone or Task DESIGN AND PERMITTING Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 4. Resolution of land use, right of way issues $$$ Obtain right-of-way permits 6/20/13 $0 $2,000,000.TATEC/Other $2,000,000. Legal 6/20/13 $0 $5,000,000.TATEC/Other $5,000,000. Public Relations 6/20/13 $0 $3,000,000.TATEC/Other $3,000,000. $$$ $$$ $$$ $$$ $$$ $ $ TOTALS $0 $10,000,000.$10,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $10,000,000.TATEC/Other $10,000,000. Construction Services $$$ Other $$$ TOTALS $0 $10,000,000.$10,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 66 of 119 7/21/2010 Milestone or Task DESIGN AND PERMITTING Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 5. Permit approvals $$$ ADNR Departments 3/30/14 $0 $500,000.TATEC/Other $500,000. FERC License 3/30/14 $0 $5,000,000.TATEC/Other $5,000,000. National Marine Fisheries Service 3/30/14 $0 $5,000,000.TATEC/Other $5,000,000. U.S. Coast Guard 3/30/14 $0 $500,000.TATEC/Other $500,000. U.S. Corps of Engineers 3/30/14 $0 $500,000.TATEC/Other $500,000. U.S. Dept of Interior 3/30/14 $0 $500,000.TATEC/Other $500,000. U.S. Environmental Protection Agency 3/30/14 $0 $2,000,000.TATEC/Other $2,000,000. Legal 3/30/14 $0 $1,000,000.TATEC/Other $1,000,000 $0 $20,000,000.TATEC/Other $20,000,000. $ TOTALS $0 $20,000,000.$20,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $20,000,000.TATEC/Other $20,000,000. Construction Services $$$ Other $$$ TOTALS $0 $20,000,000.$20,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 67 of 119 7/21/2010 Milestone or Task DESIGN AND PERMITTING Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 6. Final system design $$$ Engineering Design $$$ 3-D numeric hydrodynamic computer modeling 9/30/14 $0 $5,000,000.TATEC/Other $5,000,000. Foundation, structural engineering 9/30/14 $0 $10,000,000.TATEC/Other $10,000,000. Mechanical engineering 9/30/14 $0 $10,000,000.TATEC/Other $10,000,000. Electrical Engineering 9/30/14 $0 $25,000,000.TATEC/Other $25,000,000. Civil Engineering 9/30/14 $0 $15,000,000.TATEC/Other $15,000,000. Architect for control building 9/30/14 $0 $12,000,000.TATEC/Other $12,000,000. SCADA control system design 9/30/14 $0 $8,000,000.TATEC/Other $8,000,000. Structural Engineering 9/30/14 $0 $10,000,000.TATEC/Other $10,000,000. Construction Management 9/30/14 $0 $ 5,000,000.TATEC/Other $5,000,000. TOTALS $0 $100,000,000.$100,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $100,000,000.TATEC/Other $100,000,000. Construction Services $$$ Other $$$ TOTALS $0 $100,000,000.$100,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 68 of 119 7/21/2010 Milestone or Task DESIGN AND PERMITTING Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 7. Engineers Cost Estimate $$$ Construction Cost Estimate Site work (labor, equip., import)3/30/14 $0 $1,000,000.TATEC/Other $1,000,000. Staging for Construction 3/30/14 $0 $1,000,000.TATEC/Other $1,000,000. Tidal bridge material 3/30/14 $0 $1,000,000.TATEC/Other $1,000,000. Substation 3/30/14 $0 $1,000,000.TATEC/Other $1,000,000. Cable & tie-in to existing grid 3/30/14 $0 $1,000,000.TATEC/Other $1,000,000. Control building 3/30/14 $0 $1,000,000.TATEC/Other $1,000,000. SCADA control system 3/30/14 $0 $1,000,000.TATEC/Other $1,000,000. Thin shell concrete caisson 3/30/14 $0 $1,000,000.TATEC/Other $1,000,000. Warehouse Permits and licenses 3/30/14 $0 $1,000,000.TATEC/Other $1,000,000. Transportation, freight 3/30/14 $0 $1,000,000.TATEC/Other $1,000,000. TOTALS $0 $10,000,000.$10,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $10,000,000.TATEC/Other $10,000,000. Construction Services $$$ Other $$$ TOTALS $0 $10,000,000.$10,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 69 of 119 7/21/2010 Milestone or Task DESIGN AND PERMITTING Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 8. Updated economic and financial analysis $$$ Accounting 6/30/14 $0 $2,500,000.TATEC/Other $2,500,000. Legal 6/30/14 $0 $2,500,000.TATEC/Other $2,500,000. Public Relations 6/30/14 $0 $5,000,000.TATEC/Other $5,000,000. $$$ $$$ $$$ $$$ $$$ $ $ TOTALS $0 $10,000,000.$10,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $10,000,000.TATEC/Other $10,000,000. Construction Services $$$ Other $$$ TOTALS $0 $10,000,000.$10,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 70 of 119 7/21/2010 Milestone or Task DESIGN AND PERMITTING Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 9. Negotiated Power sales agreements with approved rates $$$ Legal 12/30/13 $0 $2,500,000.TATEC/Other $2,500,000. Accounting 12/30/13 $0 $2,500,000.TATEC/Other $2,500,000. Public Relations 12/30/13 $0 $5,000,000.TATEC/Other $5,000,000. $$$ $$$ $$$ $$$ $$$ $ $ TOTALS $0 $10,000,000.$10,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $10,000,000.TATEC/Other $10,000,000. Construction Services $$$ Other $$$ TOTALS $0 $10,000,000.$10,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 71 of 119 7/21/2010 Milestone or Task DESIGN AND PERMITTING Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 10. Final business and Operational Plan $$$ Legal 6/30/14 $0 $5,000,000.TATEC/Other $5,000,000. Accounting 6/30/14 $0 $2,000,000.TATEC/Other $2,000,000. Public Relations 6/30/14 $0 $2,000,000.TATEC/Other $2,000,000. Construction Management 6/30/14 $0 $1,000,000.TATEC/Other $1,000,000. $$$ $$$ $$$ $$$ $ $ TOTALS $0 $10,000,000.$10,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $10,000,000.TATEC/Other $10,000,000. Construction Services $$$ Other $$$ TOTALS $0 $10,000,000.$10,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 72 of 119 7/21/2010 Milestone or Task CONSTRUCTION Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 1. Confirmation that all design and feasibility requirements are complete.$$$ Commence Construction 6/30/14 $0 $5,000,000.TATEC/Other $5,000,000. Commission Module 6/30/14 $0 $5,000,000.TATEC/Other $5,000,000. $$$ $$$ $$$ $$$ $$$ $$$ $ $ TOTALS $0 $10,000,000.$10,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $10,000,000.TATEC/Other $10,000,000. Construction Services $$$ Other $$$ TOTALS $0 $10,000,000.$10,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 73 of 119 7/21/2010 Milestone or Task CONSTRUCTION Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 2. Completion of bid documents $$$ Construction Contractor 6/30/14 $0 $5,000,000.TATEC/Other $5,000,000. Legal 6/30/14 $0 $9,000,000.TATEC/Other $9,000,000. Public Relations 6/30/14 $0 $5,000,000.TATEC/Other $5,000,000. Consntruction Management 6/30/14 $0 $1,000,000.TATEC/Other $1,000,000. $$$ $$$ $$$ $$$ $ $ TOTALS $0 $20,000,000.$20,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $20,000,000.TATEC/Other $20,000,000. Construction Services $$$ Other $$$ TOTALS $0 $20,000,000.$20,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 74 of 119 7/21/2010 Milestone or Task CONSTRUCTION Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 3. Contractor/vendor selection and Award $$$ Subcontractors to Genl. Contractor 6/30/14 $$278,000.TATEC/Other $278,500,000. $$$ $$$ $$$ $$$ $$$ $$$ $$$ $ $ TOTALS $0 $278,500,000.$278,500,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $278,500,000.TATEC/Other $278,500,000. Construction Services $$$ Other $$$ TOTALS $$278,500,000.$278,500,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 75 of 119 7/21/2010 Milestone or Task CONSTRUCTION Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 4. Construction Phase $$$ Commence Construction of Platforms $$$ Subcontractors $$$ Wharf/dry dock 6/30/14 $0 $12,000,000.TATEC/Other $12,000,000. Marine 6/30/14 $0 $4,000,000.TATEC/Other $4,000,000. Marine Service 6/30/14 $0 $40,000,000.TATEC/Other $40,000,000. Dredging 6/30/14 $0 $8,000,000.TATEC/Other $8,000,000. Shipping 6/30/14 $0 $40,000,000.TATEC/Other $40,000,000. Underwater Service 6/30/14 $0 $20,000,000.TATEC/Other $20,000,000. Marine Equipment 6/30/14 $0 $16,000,000.TATEC/Other $16,000,000. $ TOTALS $0 $140,000,000.$140,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $140,000,000.TATEC/Other $140,000,000. Construction Services $$$ Other $$$ TOTALS $$140,000,000.$140,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 76 of 119 7/21/2010 Milestone or Task CONSTRUCTION Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 4. Construction $$$ Site Development Warehouse 12/30/17 $0 $50,000,000.TATEC/Other $50,000,000. Barrage 12/30/17 $0 $50,000,000.TATEC/Other $50,000,000. Potable water 12/30/17 $0 $2,000,000.TATEC/Other $2,000,000. Land Acquisition 12/30/17 $0 $10,000,000.TATEC/Other $10,000,000. Housing 12/30/17 $0 $1,000,000.TATEC/Other $1,000,000. Control Building 12/30/17 $0 $15,000,000.TATEC/Other $15,000,000. Control Center/Equipment 12/30/17 $0 $10,000,000.TATEC/Other $10,000,000. On-site labor-subcontractors 12/30/17 $0 $12,000,000.TATEC/Other $12,000,000. Construction power 12/30/17 $0 $ 5,000,000.TATEC/Other $5,000,000. Security Medical 12/30/17 12/30/17 $0 $0 $ 5,000,000. $2,500,000. TATEC/Other TATEC/Other $5,000,000. $5,000,000. TOTALS $0 $162,500,000.$162,500,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $162,500,000.TATEC/Other $162,500,000. Construction Services $$$ Other $$$ TOTALS $0 $162,500,000 $162,500,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 77 of 119 7/21/2010 Milestone or Task CONSTRUCTION Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 4. Construction Phases $$$ Onsite Equipment Crane/heavy machinery/Piling machine 12/30/17 $0 $164,000,000.TATEC/Other $164,000,000. Generator 12/30/17 $0 $470,000,000.TATEC/Other $4770,000,000. Caisson 12/30/17 $0 $450,000,000.TATEC/Other $450,000,000. Rotor tubes and drive shaft 12/30/17 $0 $266,000,000.TATEC/Other $266,000,000. Blades and arms 12/30/17 $0 $90,000,000.TATEC/Other $90,000,000. Gearbox 12/30/17 $0 $80,000,000.TATEC/Other $80,000,000. Gate 12/30/17 $0 $48,000,000.TATEC/Other $48,000,000. Bearing 12/30/17 $0 $12,000,000.TATEC/Other $12,000,000. Coupling 12/30/17 $0 $ 12,000,000.TATEC/Other $12,000,000. Foundation and Piling 12/30/17 $0 $250,000,000.TATEC/Other $250,000,000. TOTALS $1,592,000,000.$1,592,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $1,592,000,000.TATEC/Other $1,592,000,000. Construction Services $$$ Other $$$ TOTALS $0 $1,592,000,000.$1,592,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 78 of 119 7/21/2010 Milestone or Task CONSTRUCTION Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 5. Integration and testing $$$ Substation and Tie-in $$$ Substation 6/30/17 $0 $30,000,000.TATEC/Other $30,000,000. Tie-in cable to grid (cable/trans. Towers)6/30/17 $0 $50,000,000.TATEC/Other $50,000,000. $$$ $$$ $$$ $$$ $$$ $ $ TOTALS $0 $80,000,000.$80,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $80,000,000.TATEC/Other $80,000,000. Construction Services $$$ Other $$$ TOTALS $0 $80,000,000.$80,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 79 of 119 7/21/2010 Milestone or Task CONSTRUCTION Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 6. Decommissioning old systems $$$ Decommissioning 12/30/17 $0 $2,000,000.TATEC/Other $2,000,000. 7. Commissioning/Start 12/30/17 $0 $10,000,000.TATEC/Other $10,000,000. $$$ $$$ $$$ $$$ $$$ $$$ $ $ TOTALS $0 $12,000,000.$12,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $0 $12,000,000.TATEC/Other $12,000,000. Construction Services $$$ Other $$$ TOTALS $0 $12,000,000.$12,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 80 of 119 7/21/2010 Milestone or Task CONSTRUCTION Anticipated Completion Date RE-Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS 8. Operations Reporting 12/30/17 $0 $5,000,000.TATEC/Other $5,000,000. $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $ $ TOTALS $0 $5,000,000.$5,000,000. Budget Categories: Direct Labor & Benefits $$$ Travel & Per Diem $$$ Equipment $$$ Materials & Supplies $$$ Contractual Services $$$ Construction Services $$$ Other $$$ TOTALS $0 $5,000,000.$5,000,000. Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 81 of 119 7/21/2010 CONSTRUCTION SCHEDULE SECTION 3.2 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 82 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 83 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 84 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 85 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 86 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 87 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 88 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 89 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 90 of 119 7/21/2010 LETTERS OF LOCAL SUPPORT SECTION 8 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 91 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 92 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 93 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 94 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 95 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 96 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 97 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 98 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 99 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 100 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 101 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 102 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 103 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 104 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 105 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 106 of 119 7/21/2010 MAPS AND TURBINES Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 107 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 108 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 109 of 119 7/21/2010 Cross-Section of Turbine and Generators 10 MW Each 24 Total Annual Output: 600 GWh Barrage: 750m (2,461 ft.) Power Plant Portion: 332.5 m (1,092 ft.) Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 110 of 119 7/21/2010 La Rance Power Plant With Highway Brittany, France Construction Cost: 88 Million Built in 1966 In operation 44 years 1.2¢per kWh since 1986 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 111 of 119 7/21/2010 TURNAGAIN ARM TIDAL ENERGY CORPORATION LICENSES Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 112 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 113 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 114 of 119 7/21/2010 AUTHORIZED SIGNERS Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 115 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 116 of 119 7/21/2010 GOVERNING BODY RESOLUTION SECTION 1.4 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 117 of 119 7/21/2010 Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 118 of 119 7/21/2010 CERTIFICATION Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 119 of 119 7/21/2010