HomeMy WebLinkAboutNeck Lake GrantApplication4
September 14, 2010
Alaska Energy Authority
Attn: Butch White, Grants Administrator
AEA-11-005-RE Fund Grant Application Round 4
813 West Northern Lights Blvd
Anchorage, AK 99503
RE: Neck Lake Hydroelectric Project Grant Application
AEA-11-005-RE Fund Grant Application Round 4
Dear AEA:
Enclosed in response to RFA AEA-11-005-RE Fund Grant Application Round 4
program, is an application requesting funding for the Neck Lake Hydroelectric Project.
Enclosed with this letter are two hard copies and one CD with the document in PDF
format.
Enclosed as per the RFA,
o Grant Application Form
o Cost Worksheet (included in Section 10 – Appendices)
o Grant Budget (included in Section 10 – Appendices)
o Grant Budget Form Instructions
o Other pertinent information
If you have any questions, please call either Glen Martin (Resource Assessment &
Permits) 360-385-1733 x122, or Bob Grimm (President) 360-385-1733 x120.
Sincerely,
Glen D. Martin
Resource Assessment & Permits
Enc. (as stated)
Renewable Energy Fund Round IV
Grant Application
AEA 11-005 Application Page 1 of 18 7/21/2010
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-IV.html
Grant Application
Form
GrantApp4.doc Application form in MS Word that includes an outline
of information required to submit a complete
application. Applicants should use the form to assure
all information is provided and attach additional
information as required.
Application Cost
Worksheet
Costworksheet4.doc Summary of Cost information that should be
addressed by applicants in preparing their application.
Grant Budget Form GrantBudget4.doc A detailed grant budget that includes a breakdown of
costs by milestone and a summary of funds available
and requested to complete the work for which funds
are being requested.
Grant Budget Form
Instructions
GrantBudgetInstructions4.pdf Instructions for completing the above grant budget
form.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for completion of each phase.
If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
Renewable Energy Fund
Grant Application Round IV
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
ALASKA POWER COMPANY (APC)(a subsidiary of ALASKA POWER & TELEPHONE COMPANY)
Type of Entity:
UTILITY
Mailing Address
P.O. Box 3222, Port Townsend, WA 98368
Physical Address
193 Otto Street, Port Townsend, WA 98368
Telephone
360-385-1733
Fax
360-385-7538
Email
glen.m@aptalaska.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Glen Martin
Title
Permitting & Licensing Manager
Mailing Address
P.O. Box 3222, Port Townsend, WA 98368
Telephone
360-385-1733
x122
Fax
360-385-7538
Email
glen.m@aptalaska.com
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
X An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public.
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SECTION 2 – PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Neck Lake Hydroelectric Project
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project.
This project is located 1.5 miles southwest of the community of Whale Pass on Prince of Wales
Island, Alaska. The Project would supply power to the community of Whale Pass.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels
X Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance X Design and Permitting
X Feasibility X Construction and Commissioning
X Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
APC proposes to construct a small run-of-river hydroelectric project at Neck Lake, a 1,000 acre
lake located 1.5 miles southwest of the community of Whale Pass on Prince of Wales Island. The
Project would supply power to the community of Whale Pass, and would offset diesel generation,
which is currently the sole source of electricity. The relatively high and modulated flows from
the lake combined with the steep drop at the lower end of the outlet stream provide a good
opportunity for a small run-of-river hydroelectric development. Facilities would include an
access road, intake structure, 400 feet of penstock, a containerized power plant, a tailrace
channel, and upgrade of 4 miles of transmission line. The hydroelectric facilities will be
designed to avoid interference with the existing salmon rearing and collection facilities operated
at Neck Lake by the Southern Southeast Regional Aquaculture Association (SSRAA). APC
conducted a reconnaissance study of the site in 2008, and determined that there is sufficient
potential to almost always provide enough generation for Whale Pass loads (see Section 10 for a
copy of the reconnaissance report). The Project will provide clean, renewable electricity, as
well as rate stabilization and lower rates for APC’s Whale Pass customers.
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2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
This project will reduce the cost of electricity to the residents of Whale Pass who presently pay
$0.5673/kWh (excluding PCE subsidy). APC estimates that diesel generation would decrease by
about 95% at current load levels, with some diesel required occasionally when flow in the stream is
low. This would decrease fuel costs for APC, and those savings would be passed on to APC’s
customers. APC estimates the annual savings at current rates would be approximately $23,000 in
the first year of operation (equivalent to about 8.7 ¢/kWh), and the savings would increase as the
cost of diesel fuel increases. Residential customers using less than 500 kWh/month would see only a
small decrease in their bill, assuming that APC’s savings result in a comparable decrease in the
PCE COPA rate. Commercial customers and residential customers using over 500 kWh/month
would see greater savings.
The State of Alaska would benefit from reduced draw on the PCE program. Currently, about 49%
of APC’s Whale Pass retail sales are subject to COPA. The total savings to the State is estimated
to be about $11,000/year at current rates.
Lower energy costs could help stimulate economic development in Whale Pass. Customers who
have discontinued APC service because of the high cost of power would likely reconnect if the
Project is built. Other benefits to the Alaskan public would be a decrease in the environmental
impacts of diesel generation by APC or self-generation by Whale Pass residents (e.g. air
pollution, noise pollution, fuel spills, etc.).
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project.
The total cost of the Project is estimated to be $2,440,000. APC proposes AEA grant funding of
80% of the total cost ($1,952,000), with APC providing the 20% balance out of its normal
operating funds. The estimated funding by Phase is as follows:
Phase
AEA Grant
Funds
APC
Matching
Funds Total
I – Reconnaissance (1) $0 $3,500 $3,500
II – Feasibility/Assessment (2)$108,000 $0 $108,000
III - Design and Permitting $90,000 $23,000 $113,000
IV – Construction $1,754,000 $461,500 $2,215,500
Total $1,952,000 $488,000 $2,440,000
(1) AP&T conducted a site reconnaissance in 2008.
(2) Round 2 $108,000 grant awarded with no matching fund requirement
The construction costs indicated in this application are based on the 2008 site reconnaissance.
The proposed Phase II work could result in an optimum project arrangement with a cost
significantly different than that shown. Ordinarily, APC would not include Phase IV in this
grant request. However, APC believes this Project can be designed and permitted quickly and
construction initiated in 2013, which is the time frame anticipated for the current round of grant
funding. Therefore, APC requests funding for construction costs in this current application. Any
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changes to the expected construction cost of the Project that result from more detailed analyses
in Phases II and III can be dealt with at the conclusion of those phases.
APC was awarded $108,000 for conceptual design, environmental surveys, and a feasibility
report in Round 2 of the REF grant program. To date, only a small amount of work has been
conducted, since the grant documentation was not received until late October. We have adjusted
the amounts of the grant request and matching funds for this round by the amounts of the Round
2 grant.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application. $1,844,000
2.7.2 Grant Funds from Round 2 $108,000
2.7.3 Other Funds to be provided (Project match) $488,000
2.7.4 Total Grant Costs (sum of 2.7.1 and 2.7.2) $2,440,000
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)
$2,440,000
2.7.5 Estimated Direct Financial Benefit (Savings) $7,400,000
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.)
$3,620,000
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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.
Greg Mickelson, APC’s V.P. of Power Operations will be the Project Manager for all phases of
work. Mr. Mickelson is located in Klawock on POW, and is an engineer with extensive experience
in project management and electrical generation, transmission and distribution. Mr. Mickelson has
been a part of APC’s team for over 30 years and has been an essential part of their success. He has
overseen numerous projects on POW, having been there since 1983, that have also had grant
funding and is familiar with procedures put in place for their use. Please see Mr. Mickelson’s
resume in Section 10.
APC’s personnel will conduct all Phase II engineering work and will utilize contractors for the
environmental studies in Phase II. Phase III final design and permitting will be conducted by
APC’s experienced staff. Resume’s of key personnel are included in Section 10.
Phase IV construction would be either by APC using personnel hired from the local communities,
or by experienced contractors from the local communities with APC supervision.
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.)
A bar schedule of the expected design and construction sequence is provided in Section 10. The
following summarizes key activities and dates of the schedule. Note that this schedule is for the
entire development sequence; activities funded by this grant will be in Phases III and IV. Phase
II will be funded by the $108,000 grant from Round 2 and APC matching contributions.
Phase I: Reconnaissance: Completed Summer 2008
Phase II: Resource Assessment/Feasibility Analysis/Conceptual Design: 2011-2012
In late 2009 APC had a surveyor develop topographic mapping of the Project. Also during the
summer of 2011, the conceptual design from the Phase I reconnaissance work by APC will be
reviewed and augmented to develop a firm arrangement for presenting to permitting agencies.
As part of this work, APC will coordinate extensively with SSRAA regarding the proposed
development. In addition, a cost estimate will be prepared for the selected arrangement and an
economic analysis conducted. The results will be presented in a feasibility report. At the same
time, APC will work with the permitting agencies to develop study plans for environmental
surveys to be conducted later in 2011-2012. These surveys may include fish surveys, wildlife
assessments, botanical surveys, wetlands surveys, archaeological survey (initial SHPO review), and
water quality testing. APC believes that environmental field surveys for this Project will be very
limited, since the impact area is quite small, and there should be a wealth of information already
available from permitting and operation of the SSRAA facilities. Also in 2011 or 2012,
geotechnical investigations may be conducted at the intake and powerhouse areas.
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Phase III: Permitting and Final Design: Fall 2011 – Summer 2013
In this phase, permits and land easements will be acquired, and final design documents
prepared. Permits will include: COE Section 404 permit, ADFG fish habitat permit, ADNR land
lease or easement, ADNR water rights, ACMP coastal zone consistency determination, and SHPO
review. Final design will begin in Summer 2012 and will proceed into the summer of 2013 with
the intent to start construction in the Fall of 2013.
Phase IV: Construction: Fall 2013 – 2014
Once all permits are received and funding for this phase is secured, APC will place the order for
generating equipment and begin off-site fabrication of the intake and powerhouse modules. On-
site construction will begin in 2013 and continue through the end of 2014. The construction
work should not be significantly compromised by weather at this temperate location.
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.)
Key (i.e. critical path) milestones for the Project are:
Completion of topographic mapping by October 2011
End of Phase II (decision point after completion of feasibility analysis)
Receipt of all necessary permits and land access agreements by August 2013
End of Phase III (decision point after completion of design and final cost estimate)
Award contract for supply of the generating equipment by August 2013
Completion of access road to intake site by November 2013
Completion of Powerhouse by October 2013
Completion of Diversion Structure by October 2013
Test and Startup by December 2013
The schedule described in 3.2 above is consistent with these milestones.
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.
Key APC personnel involved in the project and their roles will be:
Greg Mickelson, Project Manager & Construction Superintendent
Bob Berreth, Electrical Design
Ben Beste, Mechanical Design
Larry Coupe, Civil Design
Glen Martin, Resource Assessment and Permits
Resume’s can be found in Section 10.
Phase I: Reconnaissance
Already completed by APC.
Phase II: Resource Assessment/Feasibility Analysis/Conceptual Design
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In this phase APC will acquire property access and complete environmental and
engineering/conceptual design studies. APC may use the following contractors for the various
surveys:
Wetlands delineation - - HDR Alaska Inc.
Threatened and endangered plant species survey - - HDR Alaska Inc.
Fish surveys - - Romey Associates, LLC (or possibly staff from SSRAA Hatchery)
Water quality sampling - - Analytica Group Environmental Laboratories
Cultural resource surveys - - Browne Research
Topographic mapping - - Sentec, Inc.
Geotechnical evaluation - - GeoEngineers, Inc.
APC permitting specialists will compile the environment information into resource assessment
documents as required by the various permitting agencies. APC engineers will conduct the
engineering/conceptual design studies in-house.
Phase III: Final Design & Permitting
APC has filed for a jurisdictional determination from the Federal Energy Regulatory
Commission (FERC), and expects to receive that determination by end of 2010. AP&T is
confident that FERC will not have jurisdiction, and therefore a FERC license will not be
required. Accordingly, in this phase the following permits will be acquired:
404 permit (Corps of Engineers)
Coastal zone consistency determination (ADNR-DCOM)
Fish habitat permit (ADF&G)
Land lease or easement (ADNR)
Water right (ADNR)
SHPO review
APC will prepare the final design documents in-house using its staff civil, mechanical, and
electrical engineers, who all have extensive experience in hydroelectric development. These
engineers designed APC’s South Fork Hydroelectric Project which entered service in 2005, as
well as APC’s Kasidaya Creek Hydroelectric Project which began service in October 2008.
Phase IV: Construction
Construction will be by local contractors and APC staff, as follows:
Access road - - local contractor(s) or force account
Intake fabrications - - Reynold Grey Machining and Services
Intake on-site construction - - local contractor(s) or force account
Penstock materials procurement - - APC
Penstock installation - - local contractor(s) or force account
Generating equipment procurement - - APC
Powerhouse fabrications - - Reynold Grey Machining and Services
Powerhouse construction - local contractor(s) and force account
Transmission line construction - - local contractor(s) and force account
Testing and start-up - - APC
Reynold Grey Machining and Services is a welding and fabrication company in Port Townsend,
Washington that APC has used frequently for similar work, including fabrication of container
modules for diesel powerplants recently installed in Slana and Allakaket. Reynold Grey is located
near APC’s engineering staff, who thereby can conveniently oversee the proposed fabrication work.
APC will negotiate purchase orders for materials and equipment from vendors who have performed
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well on APC’s recent projects.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
During Phases II and III, APC proposes to provide quarterly reports to AEA regarding the status
of the work. APC has provided similar reports to AEA and other grant funding agencies in the
past several years on other projects, and has established the necessary procedures for producing
the report expeditiously. Besides the quarterly reports, at the completion of Phase II, APC will
provide AEA with a copy of a report that includes the conceptual design drawings and cost
estimate. At the completion of Phase III, APC will provide AEA with a copy of the final design
drawings, specifications, and cost estimate, and the permits along with a request to release the
grant funds.
During Phase IV, communications within the team would consist of:
Weekly reports by the Environmental Compliance Monitor (as likely to be required by
the ADF&G Fish Habitat Permit)
Bi-weekly conference calls among the Project Manager, Construction
Superintendent, the Design Engineers, and SSRAA managers.
Periodic site visits by the Project Manager and Design Engineers.
These internal discussions will form the basis of quarterly reports to AEA. The reports will show
in a clear and concise manner progress made on the various tasks/milestones, the work to be
accomplished in the ensuing quarter, and potential problems and corrective actions to be
considered or implemented. Cost data will also be provided on a quarterly basis. Microsoft
Project or similar software will be used to develop and maintain schedule and budget
information; updating of the management files will be on a monthly basis.
3.6 Project Risk
Discuss potential problems and how you would address them.
Site Control – APC does not yet have development rights on the land, but will apply to ADNR for
those rights. APC is confident that its development will not conflict with the SSRAA operation
already on the site.
Seismic – Project components will be designed appropriately for seismic activity, since the
Project will be located in a moderate-risk seismic zone. Structures will be buried as much as
possible to minimize seismic impacts.
Underground Construction – The Project does not include underground construction, which can
be fraught with cost overrun potential. Geotechnical investigations will be made at the diversion
and powerhouse areas to provide an adequate level of knowledge about ground conditions at
those sites.
Inclement Weather – Working conditions in the Project area during the winter could cause brief
interruptions of the construction schedule. If prolonged interruptions occur that could
jeopardize the completion schedule, APC will add contractors or more personnel as necessary to
get back on schedule.
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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.
Proposed Energy Resource: The Neck Lake site has the potential to generate perhaps 3.2 GWh
per year with an installed capacity of 750 kW, however, that would be much greater than the
required generation (currently about 300 MWh/yr) . APC will evaluate the optimum installed
capacity during Phase II; at this time an installed capacity of 124 kW is planned.
At this time the only viable alternative to the Project is considered to be continued diesel
generation. The Project would eliminate diesel generation for almost all of the year and
significantly reduce diesel generation for the remainder.
Pros: Compared to diesel generation, the Project will have the following advantages:
less expensive to operate than diesel (lower O&M);
no need to purchase fuel;
no air emissions;
fewer hazardous substances;
no particulate matter emissions;
can come on-line after a power outage almost immediately, but diesel can’t;
lower and more stable electric rates for customers
Cons: As with all hydroelectric projects, the initial cost of development is much higher than for
diesel generation.
APC has been aggressively extending it transmission system to most of the communities on Prince
of Wales Island, and is planning to connect Coffman Cove by the end of 2010 and Naukati Bay
possibly in 2012. Theoretically, the transmission system could be extended another 25 miles to
Whale Pass from Naukati Bay, however, it would cost much more than the Project, and would
likely be less reliable.
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.
Existing Power Generation
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There are 3 gensets in APC’s Whale Pass diesel power plant, as follows:
Unit #1 = JD4045, 70 kW, Installed 1995, 11.27 kWh/gal (averaged from 2008)
Unit #2 = Cummins BT5.9, 100 kW, Installed 1995, 11.38 kWh/gal (averaged from 2008)
Unit #3 = Cummins NT855-64, 160 kW, Installed 2008, 12.62 kWh/gal (avg. July/August 2008)
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.
Diesel generation being the existing energy resource, this hydroelectric project will for nearly all
of the year eliminate the use of diesel generators. At other times only one or more diesel gensets
will be needed in addition to the hydro power. This will reduce the use of diesel and the
frequency of their maintenance, including overhauls and replacement. The diesel generators that
would be impacted are all owned and operated by APC in Whale Pass. The Project will reduce
this area’s reliance on fossil fuels. APC also owns the transmission and distribution
infrastructure, so no impacts will occur to existing energy infrastructure and resources.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The existing energy market for the Project is Whale Pass. Whale Pass is an isolated community on
the northern end of POW, approximately 25 road miles above Naukati Bay. APC currently owns
and operates all of the electrical infrastructure on the island. The Project will reduce fossil fuel
consumption by the diesel power plant in Whale Pass by approximately 25,000 gallons per year.
The existing diesel plant will be placed on standby status, reducing APC’s diesel operations and
maintenance costs.
Currently, Whale Pass customers pay $0.5673 per kWh (excluding PCE subsidy). Whale Pass
residential customers who use less than 500 kWh/month will see only a small decrease in their
electric bills, since the PCE COPA would decrease proportionally. Commercial customers and
residential customers who use more than 500 kWh/month will see a larger decrease in their electric
bills (up to 8.7 ¢/kWh in the first year of operation). Electric rates would be much more stable once
the Project is in operation.
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
Renewable energy technology specific to location – The Project will be a conventional run-of-
river hydroelectric project. Facilities to be constructed include:
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400 feet of single lane access road
Intake with fish screen, 34 cfs diversion capacity
350 feet of 30- inch diameter pipeline
Powerhouse with four 31-kW generating units, each consisting of a pump-as-turbine and
synchronous generator
Upgrade of about 4 miles of transmission line from single-phase to three-phase.
Hydroelectric technology is well developed, and provides most of the renewable energy generated
in the world in general and in Alaska in particular. The Project will utilize the abundant rainfall
and steep topography afforded by the falls on the Neck Lake outlet stream to generate renewable
energy.
Optimum installed capacity – 124 kW (to be confirmed by Phase II studies).
Anticipated capacity factor – 28% (to be confirmed by Phase II studies).
Anticipated annual generation – Approximately 300 MWh/yr, which would off-set about 25,000
gallons of diesel used per year. If Whale Pass loads grow, the Project would be able to generate
as much as 1,000 MWh/yr with the proposed installed capacity of 124 kW.
Anticipated barriers – No technological barriers.
Basic integration concept – Integration of hydropower is not particularly difficult; APC already
operates two independent integrated hydro-diesel systems. For much of the year the hydro
generation will be much more than the load, and therefore the diesel generation will be on
standby; one or more hydro units will be on-line, with any excess generation shunted to dummy
resistance loads. During low flow periods, possibly during late summer and during parts of the
winter when flow is low, the hydro generation may be placed in lag position with diesel taking the
lead. During the transition periods, diesel unit(s) will be block loaded in lag position, with the
hydro in lead position. Preliminary studies indicated that the Project would be able to replace
about 99.5% of the diesel generation, excluding planned or forced outages.
Delivery methods – Project generation will be delivered to Whale Pass via a 4-mile-long
transmission line from the powerhouse to the existing distribution system.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
The project is located on State land and APC will be applying for an easement or lease to use the
land.
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
Applicable Permits:
404 permit (Corps of Engineers)
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 13 of 18 7/21/2010
Coastal zone consistency determination (ADNR-DCOM)
Water right (ADNR),
State land easement (ADNR)
Fish habitat permit (ADF&G)
SHPO review
Permitting Timeline: APC expects to complete environmental and design studies in 2012 in order
to have permits by summer 2013.
Potential Permitting Barriers: There are no known permitting barriers at this time.
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
T&E Species: No impacts are anticipated to T&E species due to the projects location and small
size. However, the agencies will be consulted prior to making any determination.
Habitat Issues: The Southern Southeast Regional Aquaculture Association has established a
rearing and trapping facility at the lake and outlet stream. Coho salmon smolts are reared in
pens in the lake, then released into the lake for migration out to tidewater during the spring.
When the adults return, they ascend a ladder into a single raceway, where they are quickly
processed for shipment south. Water for the raceway and ladder is diverted from the head of the
second (middle falls). A general arrangement of the SSRAA facilities is shown in the
Reconnaissance Report located in Section 10 (it is a preliminary drawing and is not 100%
accurate). SSRAA’s existing knowledge of fish usage of the stream is expected to be sufficient so
that additional fish surveys will not be required.
Wetlands: There is potential for a small amount of wetlands to be impacted. A wetlands
delineation may be necessary to determine what, if any, impacts there may be.
Archaeological & Historical Resources: A review by SHPO of this site will need to occur to
determine if an archaeological survey will be necessary. Because of SSRAA’s existing use of
much of the site, an archaeological survey is unlikely to be required.
Land Development Constraints: APC will coordinate with SSRAA to make sure their needs and
goals are not affected by construction and operation of the Project.
Telecommunications Interference: The 12 kV transmission line will not create interference with
telecommunications.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 14 of 18 7/21/2010
Aviation Considerations: There is no significant aviation in the Project area.
Visual, Aesthetic Impacts: The Project will not be in a visually or aesthetically special view shed
that needs protection.
Potential Barriers: None
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
Anticipated project costs:
Phase I:......................................$3,500 (APC records)
Phase II: ...............................$108,000 (APC estimate based on APC experience)
Phase III:...............................$113,000 (APC estimate based on APC experience)
Phase IV:...........................$2,215,500 (APC estimate based on APC experience)
Total: ................................ $2,440,000
Requested grant funding: ............$1,844,000 (excludes $108,000 Round 2 grant)
Applicant matching funds: ...............$488,000 (total match for all grants)
Other sources of funding: .................$108,000 Round 2 grant
Projected capital cost:................... $2,219,000 (capital cost is assumed to be the cost of Phase IV
– Construction)
Projected development cost: ............$221,000 (development cost is assumed to be the total cost of
Phases I, II, and III)
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by
the applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the
communities they serve.)
The O&M cost for the hydro project is estimated to be $23,000 in the first year of operation (late
2014). APC will operate and maintain the Project with proceeds from sale of power to its
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 15 of 18 7/21/2010
customers. No grant funding is requested for operation and maintenance.
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
APC is developing this Project to supply power to a community it already serves. The power
generated by the Project ultimately will be sold to APC’s customers in Whale Pass at a lesser
cost than the current cost of diesel generation. APC estimates that the current retail price for
electricity to Whale Pass customers could be reduced by 8.7¢/kWh if the Project is funded as
proposed herein (excluding PCE).
Rate of Return: Not calculated.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
The Cost Worksheet is attached in Section 10.
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated
renewable energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
The people of Alaska will benefit from the Project development as follows:
Potential annual fuel displacement: Over the last 10 years, Whale Pass used an average of about
25,000 gallons of diesel fuel annually to generate an average of 306,000 kWh/year. For 2009,
the most recent fuel price for Whale Pass average has been $2.97 per gallon. Over a 50 year
period the Project could potentially save 1,500,000 gallons of diesel fuel valued at $8,700,000,
assuming a 3.75% escalation rate in the price of diesel fuel and 0.5% annual load growth. Note
that current fuel prices may be unusually low because of the global economic downturn; with a
more robust global economy it is likely that fuel prices would increase much faster than the
assumed 3.75%. Also, in keeping with AEA’s analysis method, the price of fuel has only been
calculated to escalate for 20 years.
Anticipated annual revenue: If funded as proposed herein, the Project is estimated to result in a
decrease in generation costs of about $23,000 in the first year of operation. APC would expect to
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 16 of 18 7/21/2010
have a new rate tariff for Whale Pass that passes those savings on to the Whale Pass customers,
i.e. APC’s revenues would decrease by $23,000 in the first year of operation.
Potential additional annual incentives: Not estimated.
Potential additional revenue streams : Not estimated.
Non-economic public benefits to Alaskans: Reduced air emissions and noise, reduced chance for
oil spills.
Other benefits: The State of Alaska would spend less on the PCE program, since the Project
generation would decrease the amount of diesel generation subject to PCE reimbursement. PCE
savings are estimated to be $3,620,000 over the 50-year life of the Project. In the short term the
local economy would benefit due to local hire for construction. In the long term, lower and more
stable electric rates could lead to more residential and commercial development, which in turn
would add more income to this community.
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
APC will operate the Project to supply power to APC’s grid in Whale Pass for eventual sale to its
retail customers. APC will maintain the Project as it does with its other hydroelectric resources,
which can be expected to have a life of at least 50 years. The Project will be remotely operated,
with continuous monitoring by a SCADA system. O&M personnel will visit the plant at least once
per week for routine checks on the equipment. A routine maintenance schedule will be
established, a brief annual shutdown is likely for maintenance.
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.
APC visited the Project site, coordinated with SSRAA, and prepared a reconnaissance report in
2008. We expected to begin the Phase II Feasibility Work in early 2009 if grant funds were made
available. Although we were awarded $108,000 from the Round 2 REF grants for Phase II work,
the grant documents were not received until late October 2009. As a result, the expected
development schedule has slipped one year. We are currently planning to have topographic
surveying work conducted later in 2011 or early in 2012, and will complete the Phase II work by
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 17 of 18 7/21/2010
the end of 2012.
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.
Since the proposed project would decrease electric rates and use a waterway that is already
developed for aquaculture by SSRAA, we would not expect any local opposition unless the
proposed project interferes with SSRAA’s operation. We fully expect to design a project that
avoids interference and is “junior” in priority to SSRAA’s operation. In our discussions to date
with SSRAA, they have been supportive of hydroelectric development as long as it does not
interfere. SSRAA has hydro generation at other facilities of theirs, and they understand the
benefits that they and the community would gain.
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
Total Project Costs: $2,440,000
Investments to date and funding sources: APC has spent approximately $3,500 to date on Phase I
development activities for the Project. To date, all costs have been paid out of APC’s general operations
funds.
Amount requested in grant funds: $108,000 Phase II (Round 2 grant)
$90,000 Phase III (proposed this Round 3)
$1,754,000 Phase IV (proposed this Round 3)
$1,952,000 Total
Additional investment by APC: APC will provide matching funding equaling 20% of the total cost of
Project development ($488,000). This matching amount will be paid from APC’s general operations
funds.
[AUTHORIZED SIGNATURES]
Grant Documents Authorized Signers
Please clearly print or type all sections of this form.
Community/Grantee Name: ALASKA POWER COMPANY
Regular Election is held: Annually / Board of Dir. IDate: September 14, 2010
Authorized Grant Si
Printed Name Title Term
Glen Martin Permitting I Lic.ensing / PermanenEnvlfonnfental KeVleW
Robert S. Grimm CEO I President Permanen
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term
Robert S. Grimm CEO I President Permanent
Grantee Contact Information' .
Mailing Address: P.o. Box 3222, Port Townsend, WA 98368
Phone Number: (360) 385-1733 x122
Fax Number: (360) 385-7538
E-mail Address:
glen.m@aptalaska.com
Federal Tax 10 #: 92-0153693
Please submit an updated form whenever there is a change to the above information.
Please return the original completed form to:
Alaska Energy Authority
ALASKA813 W. Northern Lights Blvd. ENERGY AUTHORITYAnchorage, AK 99503
Attn: Butch White, Grants Adminjstrator
H:\GRANTSIAEA Round IV Renewable Energy Grants LOIO\Grant_Authorized_Signers4.doc
APPENDICES
TABLE OF CONTENTS
1. Certificate of Public Convenience & Necessity
2. Corporate Resolution
3. Project Maps
4. Project Description
5. Permits
6. Schedule
7. Letter’s of Support
8. Resume’s
9. Cost Worksheet
10. Grant Budget Form
CERTIFICATE OF PUBLIC
CONVENIENCE & NECESSITY
CORPORATE RESOLUTION
PROJECT MAPS
PROJECT DESCRIPTION
PROJECT DESCRIPTION
Alaska Power & Telephone Company (AP&T) proposes to construct a small run-of-river
hydroelectric project at Neck Lake in the outfall stream below the lake, which is located
1.5 miles southwest of the community of Whale Pass on Prince of Wales Island, Alaska.
The Project would supply power to the community of Whale Pass and would offset diesel
generation, which is currently the sole source of electricity. The relatively high and
modulated flows from the lake combined with the steep drop at the lower end of the
outlet stream provide a good opportunity for a small run-of-river hydroelectric
development. Facilities would include an access road, intake structure, 400 feet of
penstock, a containerized power plant with generator rated at 124 kW – 400 kW, a
tailrace channel, and upgrade of 4 miles of transmission line. The hydroelectric facilities
will be designed to avoid interference with the existing salmon rearing and collection
facilities operated at Neck Lake by the Southern Southeast Regional Aquaculture
Association (SSRAA). AP&T conducted a reconnaissance study of the site in 2008, and
determined that there is sufficient potential to almost always provide enough generation
for Whale Pass loads. The Project will provide clean, renewable electricity, as well as
rate stabilization and lower rates for AP&T’s Whale Pass customers.
PERMITS
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 1 of 18
Coastal Project Questionnaire and Certification Statement
The Coastal Project Questionnaire (CPQ) is a diagnostic tool that will identify the state and federal permit requirements for your
project that are subject to a consistency review. You must answer all questions. If you answer “Yes” to any of the questions, please
call that specific department for further instructions to avoid delay in processing your application. You can find an agency contact list
online at http://alaskacoast.state.ak.us/Contacts/PRCregcont.html.
A complete project packet includes accurate maps and plan drawings at scales large enough to show details, copies of your state and
federal permit applications, your answers to this questionnaire, and a complete consistency evaluation. DCOM will notify you within
21 days of receipt if the packet is incomplete and what information is still required.
For additional information or assistance, you may call or email the Juneau Project Review at (907) 465-2142, or the Anchorage Project
Review at (907) 269-7478. This CPQ document contains numerous hyperlinks (underlined text that has a connection to an internet web
page) and is best viewed on-line. Additional instructions are available at http://www.alaskacoast.state.ak.us/Projects/pcpq.html
APPLICANT INFORMATION
1. Alaska Power & Telephone Company
Name of Applicant
P.O. Box 3222
Address
Port Townsend, WA 98368
City/State/Zip
360-385-1733 x122
Daytime Phone
360-385-7538 glen.m@aptalaska.com
Fax Number E-mail Address
2.
Agent (or responsible party if other than applicant)
Address
City/State/Zip
Daytime Phone
Fax Number E-mail Address
PROJECT INFORMATION Yes No
1. This activity is a: new project modification or addition to an existing project
2. If this is a modification or an addition, do you currently have any State, federal or local approvals for this activity?
NOTE: Approval means any form of authorization. If "yes," please list below:
Approval Type Approval # Issuance Date Expiration Date
3. If this is a modification, was this original project reviewed for consistency with the Alaska Coastal Management
Program? .............................................................................................................................................................................
Previous ACMP I.D. Number: (example: AK 0706-05AA or ID2004-0505JJ)
Previous Project Name: Previous Project Applicant:
PROJECT DESCRIPTION
Attach a complete and detailed narrative description of your new project or of your modification/addition including ALL
associated facilities and changes to the current land or water use (if not already attached as part of an agency application).
Clearly delineate the project boundaries and all property owners, including owners of adjacent land, on the site plan. The
scale of the maps and plan drawings must be large enough to show pertinent details. Identify your proposed footprint or
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 2 of 18
disturbed area. If this project is a modification to an approved project, identify existing facilities and proposed changes on
the site plan.
Proposed starting date for project: 2010 Proposed ending date for project: 2011 (operations would begin)
PROJECT LOCATION and LAND OWNERSHIP Yes No
4. Describe/identify the project location on a map (Including nearest community, the name of the nearest land feature or
body of water, and other legal description such as a survey or lot number.).
Township T66S Range R79E Section 35 Meridian CRM
Latitude/Longitude / (specify Decimal Degrees or Degrees, Minutes, Seconds)
USGS Quad Map Petersberg (A-4)
5. The project is located on: State land or water* Federal land Private land Municipal land
(Check all that apply) Mental Health Trust land University of Alaska land
Contact the applicable landowner(s) to obtain necessary authorization. State land ownership can be verified using
Alaska Mapper. *State land can be uplands, tidelands or submerged lands to 3 miles offshore.
6. Is the project within or associated with the Trans Alaska Pipeline corridor? ......................................................................
COASTAL DISTRICT Yes No
7. Is the project located in a coastal district? ................................. …………………………………….................................
If yes, identify the applicable coastal district(s) Thorne Bay and contact them to ensure your project conforms with
district policies and zoning requirements. Coastal districts are a municipality or borough, home rule or first class city,
second class municipality with planning powers, or coastal resource service area. A coastal district is a participant in
the State's consistency review process. Early interaction with the district can benefit you significantly; please contact
the district representative listed on the contact list at http://www.alaskacoast.state.ak.us/Contacts/PRCregcont.html
DEPARTMENT OF NATURAL RESOURCES (DNR) APPROVALS
DNR DIVISION OF MINING, LAND & WATER- LAND SECTION Yes No
1. Is the proposed project on State-owned land or water or will you need to cross State-owned land for access? (NOTE:
State land includes the land below the ordinary high water line of navigable streams, rivers and lakes, and in marine
waters, below the mean high tide line seaward for three miles. State land does not include Alaska Mental Health Trust
Land or University of Alaska Land.) ……………………………………………………………..………………………..
2. If you answered yes to the question above, indicate the person you contacted at the appropriate Division of Mining,
Land and Water regional office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? .....................................................................................................
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DNR DIVISION OF MINING, LAND & WATER- MATERIALS SECTION Yes No
3. Do you plan to dredge or otherwise excavate or remove materials such as rock, sand, gravel, peat, or overburden from
any land regardless of ownership? ......................................................................................................................................
a) Location of excavation site if different than the project site:
Township Range Section Meridian
4. At any one site (regardless of land ownership), do you plan any of the following? ............................................................
Excavate five or more acres over a year’s time
Excavate 50,000 cubic yards or more of materials (rock, sand, gravel, soil, peat, overburden, etc.) over a year’s
time
Have a cumulative, un-reclaimed, excavated area of five or more acres
5. Do you plan to place fill or excavated material on State-owned land? ...............................................................................
a) Location of fill or material disposal site if different than the project site:
Township Range Section Meridian
6. If you answered yes to any question above, indicate the person you contacted at the appropriate Division of Mining,
Land and Water regional office for information.
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 3 of 18
a) Name/date of Contact:
b) Is an application required for the proposed activity? ......................................................................................................
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DNR DIVISION OF MINING, LAND & WATER- MINING SECTION Yes No
7. Do you plan to mine for locatable minerals such as silver, gold, or copper? .....................................................................
8. Do you plan to explore for or extract coal? ........................................................................................................................
9. If you answered yes to any question above, indicate the person you contacted at the appropriate Division of Mining,
Land and Water regional office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ......................................................................................................
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DNR DIVISION OF MINING, LAND & WATER- WATER SECTION Yes No
10. Will this project or development divert, impound, withdraw, or use any fresh water (regardless of land ownership)?
(NOTE: If you know of other water users who withdraw from the same source or any potential conflicts affecting this use
of water, contact the Water Section. If you are obtaining water exclusively from either an existing Public Water Supply or
from a rainwater catchment system, you are not required to contact the DNR Water Section regional office.) ......................
a) Check all points-of-withdrawal or water sources that apply:
Public Water system (name):
Stream or Lake (name): outlet stream for Neck Lake
Well
Rain catchment system
Other:
b) Intended use(s) of water: hydroelectric project
c) Amount (maximum daily, not average, in gallons per day): 34 cfs
d) Is the point of water withdrawal on property you own? …………………………………………………………...........
11. Do you plan to build or alter a dam (regardless of land ownership)? ....................diversion structure………....................
12. If you answered yes to any question above, indicate the person you contacted at the appropriate Division of Mining,
Land and Water regional office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? .......................................................................................................
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DNR DIVISION OF FORESTRY Yes No
13. Does your operation meet both of the following criteria on any land, regardless of ownership?
a) The project will commercially harvest timber on 10 or more acres, or commercially harvest timber that intersects,
encompasses, or borders on surface waters, and
b) The project involves one or more of the following: site preparation, thinning, slash treatment, construction and
maintenance of roads associated with a commercial timber harvest, or any other activity leading to or connected to a
commercial timber harvest operation…………………………........................................................................................
14. If you answered yes to any question above, indicate the person you contacted at the appropriate Division of Forestry
regional office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ......................................................................................................
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DNR DIVISION OF OIL & GAS Yes No
15. a) Will you be exploring for or producing oil and/or gas? ………………………………………………………………...
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 4 of 18
b) Will you conduct surface use activities on/within an oil and gas lease or unit? ……………………………………….
If yes, please specify:
16. Do you plan to drill a geothermal well (regardless of land ownership)? ………………………………………………….
17. If you answered yes to any question above, indicate the person you contacted at the appropriate Division of Oil & Gas
office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? …………………………………………………………………...
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
Visit the Division of Oil & Gas website for application forms and additional information.
DNR OFFICE OF HISTORY & ARCHAEOLOGY Yes No
18. Will you investigate, remove, or impact historical, archaeological or paleontological resources (anything over 50 years
old) on State-owned land? …………………………………………………………………………………………………
19. If you answered yes to the question above, indicate the person you contacted at the State Historic Preservation Office
for information.
a) Name/date of Contact:
DNR DIVISION OF GEOLOGICAL & GEOPHYSICAL SURVEYS Yes No
20. Is the proposed project located within a natural hazard area designated by a coastal district in the approved district
plan? (Refer to the district plan or contact the coastal district office.) …………………………………………………….
a) If “yes”, describe the measures you will take in the siting, design, construction, and operation of the proposed activity
to protect public safety, services, and the environment from potential damage caused by the designated natural
hazard(s) in the Natural Hazards portion of the attached Coastal Consistency Evaluation (11 AAC 112.210).
21. If you have contacted someone, please indicate the person you contacted at the Coastal District or the State for
information. The Division of Geological & Geophysical Survey may have additional information on hazards for the
area.
a) Name/date of Contact:
DNR DIVISION OF PARKS & OUTDOOR RECREATION Yes No
22. Is the proposed project located in a unit of the Alaska State Park System including navigable waters, tidelands or
submerged lands to three miles offshore? ………………………………………………………………………………….
23. If you answered yes to any question above, indicate the person you contacted at the appropriate DNR Division of Parks
& Recreation office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? …………………………………………………………………...
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DNR APPROVALS
List the Department of Natural Resources permits or authorizations required for your project below:
Types of project approvals or permits needed. Date application submitted
Water Rights Application
DNR Land lease or easement
DEPARTMENT OF FISH AND GAME (DFG) APPROVALS
Yes
No
1. Is your project located in a designated State Game Refuge, Critical Habitat Area or State Game Sanctuary? …………...
2. Does your project include construction/operation of a salmon hatchery? …………………………………………………
3. Does your project affect, or is it related to, a previously permitted salmon hatchery? …is next to a hatchery, but not
expected to impact………………………………………………………………………………………………………
4. Does your project include construction of an aquatic farm? ………………………………………………………………
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 5 of 18
5. Will you work in, remove water or material from, or place anything in, a stream, river or lake? (NOTE: This includes
work or activities below the ordinary high water mark or on ice, in the active flood plain, on islands, in or on the face
of the banks, or, for streams entering or flowing through tidelands, above the level of mean lower low tide. If the
proposed project is located within a special flood hazard area, a municipal floodplain development permit may be
required. Contact the affected city or borough planning department for additional information and a floodplain
determination.) ……………………………………………………………………………………………………………..
a) If yes, name of waterbody: outlet stream of Neck Lake
6. If you answered yes to any questions above, indicate the person you contacted at the appropriate Department of Fish
and Game office for information. (For projects involving Hatcheries or Aquatic Farms, please contact the Division of
Commercial Fisheries. Other projects should contact the Division of Habitat.)
a) Name/date of Contact:
b) Is an application required for the proposed activity? ………………………………………………………………….
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DFG APPROVALS
List the Department of Fish and Game permits or authorizations required for your project below:
Types of project approvals or permits needed. Date application submitted
Habitat Permit
DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC) APPROVALS
DEC DIVISION OF WATER Yes No
1 a) Will a discharge of non-domestic wastewater to lands, waters, or the subsurface of the state occur? (NOTE: Non-
domestic wastewater includes wastewater from commercial or industrial facilities, excavation projects, wastewater
from man-made containers or containment areas, or any other non-domestic wastewater disposal activities see 18
AAC 72.990 for definitions.) …………………………………………………………………………………………...
b) Will a discharge of domestic wastewater or septage to lands, waters or the subsurface of the state occur? (see 18 AAC
72.990 for definitions.) ……………………………………………………………………………………………..
c) Will the wastewater disposal activity require a mixing zone or zone of deposit to meet Water Quality Standards
(WQS)? (Many disposal activities require a mixing zone to meet WQS, contact DEC if unsure.) ……………………..
d) Will the project include a stormwater collection/discharge system? ……………………………………………………
e) Will the project include placing fill in wetlands? ……………………in the lake outlet stream……..………………….
f) Is the surrounding area inundated with water at any time of the year? ………………………………………………….
g) Do you intend to construct, install, modify or use any part of a domestic or non-domestic wastewater treatment or
disposal system? …………………………………………………………………………………………………………
2. Does your project qualify for a general permit for wastewater? ...............................................................
3. If you answered yes to any questions above, indicate the person you contacted at the DEC-Division of Water for
information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? …………………DEC will go through the COE for permitting...
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation: DEC does not want a permit application, but will use the COE review process to issue a
401 Certification.
DEC DIVISION OF ENVIRONMENTAL HEALTH
Yes No
4 a) Will your project result in construction, modification, or operation of a facility for solid waste disposal? (NOTE:
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 6 of 18
Solid waste means drilling wastes, household garbage, refuse, sludge, construction or demolition wastes, industrial
solid waste, asbestos, and other discarded, abandoned, or unwanted solid or semi-solid material, whether or not
subject to decomposition, originating from any source. Disposal means placement of solid waste on land.) ……….
b) Will your project result in treatment of solid waste at the site? (Examples of treatment methods include, but are not
limited to: incineration, open burning, baling, and composting.) ………………………………………………………
c) Will your project result in storage or transfer of solid waste at the site? ……………………………………………….
d) Will the project result in storage of more than 50 tons of materials for reuse, recycling, or resource recovery? ………
e) Will any sewage solids or biosolids be disposed of or land-applied to the site? (NOTE: Sewage solids include wastes
that have been removed from a wastewater treatment plant system, such as a septic tank lagoon dredge, or
wastewater treatment sludge that contain no free liquids. Biosolids are the solid, semi- solid or liquid residues
produced during the treatment of domestic septage in a treatment works which are land applied for beneficial use.) ..
5. Will your project require application of oil, pesticides, and/or any other broadcast chemicals? ………………………….
6. Does your project qualify for a general permit for solid waste? ................................................................
7. If you answered yes to any question above, indicate the person you contacted at the DEC- Division of Environmental
Health for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? …………………………………………………………………...
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DEC DIVISION OF AIR QUALITY Yes No
8 a) Will you have an asphalt plant designed to process no less than five tons per hour of product? ………………………
b) Will you have a thermal remediation unit with a rated capacity of at least five tons per hours of untreated material? ..
c) Will you have a rock crusher with a rated capacity of at least five tons per hour? ……………………………………..
d) Will you have one or more incinerators with a cumulative rated capacity of 1,000 pounds or more per hour? ………..
e) Will you have a coal preparation plant? ………………………………………………………………………………...
f) Will you have a Port of Anchorage stationary source? ………………………………………………………………….
g) Will you have a facility with the potential to emit no less than 100 tons per year of any regulated air contaminant?.....
h) Will you have a facility with the potential to emit no less than 10 tons per year of any hazardous air contaminant or
25 tons per year of all hazardous air contaminants?........................................................................................................
i) Will you be constructing a new stationary source with a potential to emit greater than: ………………………………
15 tons per year (tpy) of PM-10
40 tpy of nitrogen oxides
40 tpy of sulfur dioxide
0.6 tpy of lead; or
100 tpy of CO within 10 km of a nonattainment area
j) Will you be commencing construction, or (if not already authorized under 18 AAC 50) relocating a portable oil and
gas operation? (answer “yes” unless you will comply with an existing operating permit developed for the portable oil
and gas operation at the permitted location; or you will operate as allowed under AS 46.14.275 without an operating
permit) ………………………………………………………………………………………………………....................
k) Will you be commencing construction or (if not already authorized under 18 AAC 50) relocating an emission unit
with a rated capacity of 10 million Btu or more per hour in a sulfur dioxide special protection area established under
18 AAC 50.025? …………………………………………………………………………………………………………
l) Will you be commencing a physical change to or a change in the method of construction of an existing stationary
source with a potential to emit an air pollutant greater than an amount listed in g) that will cause for that pollutant an
emission increase (calculated at your discretion) as either an increase in potential to emit that is greater than:
10 tpy of PM-10
10 tpy of sulfur dioxide
10 tpy of nitrogen oxides; or
100 tpy of CO within 10 km of a nonattainment area; or
actual emissions and a net emissions increase greater than:
10 tpy of PM-10
10 tpy of sulfur dioxide
10 tpy of nitrogen oxides; or
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 7 of 18
100 tpy of CO within 10 km of a nonattainment area
m) Will you be commencing construction or making a major modification of a Prevention of Significant Deterioration
stationary source under 18 AAC 50.306? ………………………………………………………………………………..
n) Will you be commencing construction or making a major modification of a nonattainment area major stationary
source under 18 AAC 50.311? …………………………………………………………………………………………...
o) Will you be commencing construction or reconstructing a major stationary source under 18 AAC 50.316, for
hazardous air pollutants? Definition of Regulated Air Pollutants can be found at
http://www.epa.gov/ttn/oarpg/t5/memoranda/rapdef.pdf ..................................................................................................
9. If you answered yes to any questions above, indicate the person you contacted at the DEC- Division of Air Quality for
information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DEC DIVISION OF SPILL PREVENTION AND RESPONSE Yes No
10 a) Will your project involve the operation of waterborne tank vessels or oil barges that carry crude or non crude oil as
bulk cargo, or the transfer of oil or other petroleum products to or from such a vessel or a pipeline system? ………….
b) Will your project require or include onshore or offshore oil facilities with an effective aggregate storage capacity of
greater than 5,000 barrels of crude oil or greater than 10,000 barrels of non-crude oil? ………………………………..
c) Will you operate facilities on land or water for exploration or production of hydrocarbons? ………………………….
11. If you answered yes to any questions above, indicate the person you contacted at the DEC-Division of Spill Prevention
and Response office for information.
a) Name/date of Contact:
b) Is a plan required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed Oil Discharge Prevention & Contingency Plan to the DCOM.
If “No”, explain why an application isn’t required. Explanation:
DEC APPROVALS
List the Department of Environmental Conservation permits or authorizations required for your project below:
Types of plan approvals or permits needed Date application submitted
FEDERAL APPROVALS
U.S. ARMY CORPS OF ENGINEERS (USACE) Yes No
1. Will you discharge dredged and/or fill material or perform dredging activities in waters of the U.S? Section 404 of the
Clean Water Act requires that a Department of the Army permit be obtained for the placement or discharge of dredged
and/or fill material into waters of the U.S., including wetlands (33 U.S.C. 1344). (Your application to the USACE would
also serve as application for DEC Water Quality Certification.) ………………………………….
2. Will you place fill or structures or perform work in waters of the U.S? Section 10 of the Rivers and Harbors Act of
1899 requires that a Department of the Army permit be obtained for structures or work in or affecting navigable waters
of the U.S. (33 U.S.C. 403) (Waters of the U.S. include marine waters subject to the ebb and flow of the tide, rivers,
streams, lakes tributaries, and wetlands. If you are not certain whether your proposed project is located within a
wetland, contact the USACE Regulatory Division to request a wetlands determination. For additional information
about the Regulatory Program, visit www.poa.usace.army.mil/reg) ………………………………………..
3. If you answered yes to the question above, indicate the person you contacted at the US Army Corps of Engineers for
information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………………………………………………………………
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 8 of 18
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
BUREAU OF LAND MANAGEMENT (BLM) Yes No
4. Is the proposed project located on BLM land, or will you need to cross BLM land for access? ………………………….
5. If you answered yes to the question above, indicate the person you contacted at the Bureau of Land Management for
information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
U.S. COAST GUARD (USCG) Yes No
6 a) Do you plan to construct a bridge or causeway over tidal (ocean) waters, or navigable rivers, streams or lakes? ……...
b) Does your project involve building an access to an island? …………………………………………………………….
c) Do you plan to site, construct, or operate a deepwater port? ……………………………………………………………
7. If you answered yes to any question above, indicate the person you contacted at the appropriate US Coast Guard office
for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) Yes No
8 a) Will the proposed project have a discharge to any waters? ……………………………………………………………...
b) Will you dispose of sewage sludge? …………………………………………………………………………………….
c) Will construction of your project expose 1 or more acres of soil? (NOTE: This applies to the total amount of land
disturbed, even if disturbance is distributed over more than one season, and also applies to areas that are part of a
larger common plan of development or sale.) …………………………………………………………………………...
d) Is your project an industrial facility that will have stormwater discharge directly related to manufacturing, processing,
or raw materials storage areas at an industrial plant? If you answered yes to c) or d), your project may require an
NPDES Stormwater permit ………………………………………………………………………………………………
9. If you answered yes to any question above, indicate the person you contacted at the US Environmental Protection
Agency for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………EPA will go through COE………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
FEDERAL AVIATION ADMINISTRATION (FAA) Yes No
10 a) Is your project located within five miles of any public airport? ………………………………………………………
b) Will you have a waste discharge that is likely to decay within 5,000 feet of any public airport? ……………………
11. If you answered yes to the question above, indicate the person you contacted at the Federal Aviation Administration
for information.
a) Name/date of Contact:
FEDERAL ENERGY REGULATORY COMMISSION (FERC) Yes No
12 a) Does the project include any of the following: …………………………………………………………………………
1) a non-federal hydroelectric project on any navigable body of water
2) locating a hydro project on federal land (including transmission lines)
3) using surplus water from any federal government dam for a hydro project
b) Does the project include construction and operation, or abandonment of interstate natural gas pipeline facilities
under sections 7 (b) and (c) of the Natural Gas Act (NGA)? .....………………………………………………………
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 9 of 18
c) Does the project include construction and operation of natural gas or liquefied natural gas importation or exportation
facilities under section 3 of the NGA? .........................................................................................................
d) Does the project include construction for physical interconnection of electric transmission facilities under section
202 (b) of the FPA? ……………………………………………………………………………………………………
13. If you answered yes to any question above, indicate the person you contacted at the appropriate Federal Energy
Regulatory Commission office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ………………………………………………………………..…
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
U.S. FOREST SERVICE (USFS) Yes No
14 a) Does the proposed project involve construction on USFS land? ………………………………………………………..
b) Does the proposed project involve the crossing of USFS land with a water line? ……………………………………...
c) The current list of Forest Service permits that require ACMP consistency review are online at
http://alaskacoast.state.ak.us/Clawhome/handbook/pdf/11_AAC_110.pdf in Article 4, 11 AAC 110.400, pages 28-30.
Does your proposed project include any of Forest Service authorizations found on pages 28-30 of the ACMP
Handbook? ………………………………………………………………………………………………………………
15. If you answered yes to any question above, indicate the person you contacted at United States Forest Service for
information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
U.S. FISH AND WILDLIFE SERVICE (USFWS) Yes No
16 a) Is your proposed project on land managed by the USFWS? …………………………………………………………….
b) Does your project require a Right of Way from the USFWS under 50 C.F.R. 29 and 50 C.F.R 36? ..............................
17. If you answered yes to any question above, indicate the person you contacted at the US Fish and Wildlife Service for
information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
OTHER FEDERAL AGENCY APPROVALS Yes No
18 a) Other Federal agencies with authorizations reviewable under the Alaska Coastal Management Program are posted
online at http://alaskacoast.state.ak.us/Clawhome/handbook/pdf/11_AAC_110.pdf in Article 4, 11 AAC 110.400,
pages 28-30. Does your proposed project include any of the Federal agency authorizations found on pages 28-30 of
the ACMP Handbook? …………………………………………………………………………………………………...
b) If yes, which federal authorizations? COE Permit
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 10 of 18
19. Have you applied for any other federal permits or authorizations? ………………………………………………………..
Agency Approval Type Date Submitted
COE Individual Permit Will apply for.
Note: The Coastal Project Questionnaire (CPQ) identifies state and federal permits subject to a consistency review. You may
need additional permits from other agencies or the affected city and borough government to proceed with your activity. Attach
the documentation requested under the Project Description.
ACMP Consistency Evaluation & Certification Statement
Pursuant to 11 AAC 110.215 (a)(1)(c), the applicant shall submit an evaluation of how the proposed project is consistent with the
statewide standards at 11 AAC 112.200 - 11 AAC 112.990 and with the applicable district enforceable policies, sufficient to support
the consistency certification. Evaluate your project against each section of the state standards and applicable district enforceable
policies using the template below or by submitting a narrative description in letter or report form. District enforceable policies are
available on the ACMP website at http://www.alaskacoast.state.ak.us. Definitions of key terms can be found at: 11 AAC 110.990, 11
AAC 112.990 and 11 AAC 114.990.
If you need more space for an adequate explanation of any of the applicable standards, please attach additional pages to the end of this
document. Be sure to include references to the specific sections and subsections that you are evaluating.
STATEWIDE STANDARDS
11 AAC 112.200. Coastal Development
Standard:
(a) In planning for and approving development in or adjacent to coastal waters, districts and state agencies shall manage
coastal land and water uses in such a manner that those uses that are economically or physically dependent on a coastal
location are given higher priority when compared to uses that do not economically or physically require a coastal
location.
(b) Districts and state agencies shall give, in the following order, priority to
(1) water-dependent uses and activities;
(2) water-related uses and activities; and
(3) uses and activities that are neither water-dependent nor water-related for which there is no practicable inland
alternative to meet the public need for the use or activity.
(c) The placement of structures and the discharge of dredged or fill material into coastal water must, at a minimum,
comply with the standards contained in 33 CFR Parts 320 - 323, revised as of July 1, 2003.
Evaluation:
(a) How is your project economically or physically dependent on a coastal location? Why are you proposing to place
the project at the selected location? This project is sited at a coastal location because that is where the water
source is for this hydroelectric project. Hydro projects generally are near the coast because of the amount of
head needed to create pressure to turn a hydro turbine and also because it is nearer the market for the
electricity, generally found along the Alaska coastline.
(b) Evaluation of development priority.
(1) How is the proposed project water-dependent? Explain. It is a hydroelectric project which requires water.
(2) How is the proposed project water-related? Explain. It is a hydroelectric project which requires water.
(3) If the proposed project is neither water-dependent nor water-related, please explain why there is not a practicable
inland alternative that meets the public need for the use or activity. Explain.
(c) DCOM defers to the United States Corps of Engineers (USACE) to interpret compliance with the referenced
standards. If you plan to discharge or fill waters of the US, have you applied to the Corps of Engineers for the
appropriate authorization?
We will be applying to the COE.
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 11 of 18
11 AAC 112.210. Natural hazard areas.
Standard:
(a) In addition to those identified in 11 AAC 112.990, the department, or a district in a district plan, may designate other
natural processes or adverse conditions that present a threat to life or property in the coastal area as natural hazards. Such
designations must provide the scientific basis for designating the natural process or adverse condition as a natural hazard
in the coastal area, along with supporting scientific evidence for the designation.
(b) Areas likely to be affected by the occurrence of a natural hazard may be designated as natural hazard areas by a state
agency or, under 11 AAC 114.250(b), by a district.
(c) Development in a natural hazard area may not be found consistent unless the applicant has taken appropriate
measures in the siting, design, construction, and operation of the proposed activity to protect public safety, services, and
the environment from potential damage caused by known natural hazards.
(d) For purposes of (c) of this section, "appropriate measures in the siting, design, construction, and operation of the
proposed activity" means those measures that, in the judgment of the coordinating agency, in consultation with the
department’s division of geological and geophysical surveys, the Department of Community and Economic Development
as state coordinating agency for the National Flood Insurance Program under 44 C.F.R. 60.25, and other local and state
agencies with expertise,
(1) satisfy relevant codes and safety standards; or
(2) in the absence of such codes and standards;
(A) the project plans are approved by an engineer who is registered in the state and has engineering experience
concerning the specific natural hazard; or
(B) the level of risk presented by the design of the project is low and appropriately addressed by the project plans.
Evaluation:
(a) Describe the natural hazards designated in the district plan as they affect this site.
(b) Describe how the proposed project is designed to accommodate the designated hazards. How will you use site design
and operate the proposed activity to protect public safety, services and the environment from potential damaged caused
by known natural hazards? No natural hazards are identified for this site.
(d)(1) Describe the measures you will take to meet relevant codes and safety standards in the siting, design, construction
and operation of the proposed activity.
(d)(2)(A) If your project is located in an area without codes and safety standards, how is your project engineered for the
specific natural hazard? Give the name of the appropriately qualified registered engineer who will approve the plans for
protecting public safety, services, and the environment from damage caused by hazards OR
(d)(2)(B) If the level of risk presented by the design of the project is low, how do the project plans and project design
address the potential natural hazard?
11 AAC 112.220. Coastal access.
Standard:
Districts and state agencies shall ensure that projects maintain and, where appropriate, increase public access to, from,
and along coastal water.
Evaluation:
Please explain how the proposed project will maintain and, where appropriate, increase public access to, from and along
coastal water. A road already exists along the coast and to the lake. This project will not impact either the
coastal road or access to the lake because the project will be below the lake in its outlet stream. A short road
will be made into the diversion site.
11 AAC 112.230. Energy facilities.
Standard:
(a) The siting and approval of major energy facilities by districts and state agencies must be based, to the extent
practicable, on the following standards:
(1) site facilities so as to minimize adverse environmental and social effects while satisfying industrial requirements;
(2) site facilities so as to be compatible with existing and subsequent adjacent uses and projected community needs;
(3) consolidate facilities;
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 12 of 18
(4) consider the concurrent use of facilities for public or economic reasons;
(5) cooperate with landowners, developers, and federal agencies in the development of facilities;
(6) select sites with sufficient acreage to allow for reasonable expansion of facilities;
(7) site facilities where existing infrastructure, including roads, docks, and airstrips, is capable of satisfying industrial
requirements;
(8) select harbors and shipping routes with least exposure to reefs, shoals, drift ice, and other obstructions;
(9) encourage the use of vessel traffic control and collision avoidance systems;
(10) select sites where development will require minimal site clearing, dredging, and construction;
(11) site facilities so as to minimize the probability, along shipping routes, of spills or other forms of contamination that
would affect fishing grounds, spawning grounds, and other biologically productive or vulnerable habitats, including
marine mammal rookeries and hauling out grounds and waterfowl nesting areas;
(12) site facilities so that design and construction of those facilities and support infrastructures in coastal areas will allow
for the free passage and movement of fish and wildlife with due consideration for historic migratory patterns;
(13) site facilities so that areas of particular scenic, recreational, environmental, or cultural value, identified in district
plans, will be protected;
(14) site facilities in areas of least biological productivity, diversity, and vulnerability and where effluents and spills can
be controlled or contained;
(15) site facilities where winds and air currents disperse airborne emissions that cannot be captured before escape into
the atmosphere;
(16) site facilities so that associated vessel operations or activities will not result in overcrowded harbors or interfere
with fishing operations and equipment.
(b) The uses authorized by the issuance of state and federal leases, easements, contracts, rights-of-way, or permits for
mineral and petroleum resource extraction are uses of state concern.
Evaluation:
(a) If this standard applies to your project, please describe in detail how the proposed project is designed to meet each
applicable section of this standard:
(1)The project corridor for the penstock and access road will be kept to as small a footprint as feasible to
minimize impacts to vegetation and any terrestrial habitat. The operation of the project will be harmonized
with the SSRAA hatchery at the bottom of the creek.
(2) Project feature placement and operation will be reviewed by SSRAA to ensure the project will not impact
their operations.
(3)
(4)
(5) This project will require coordination with State and Federal agencies in order to get the necessary
permits.
(6)
(7) Project facilities will be near the existing distribution infrastructure into Whale Pass, near the road system,
and able to use a road into the SSRAA hatchery. This will minimize project impacts by using existing
infrastructure as well as locating project features near the existing infrastructure.
(8)
(9)
(10)
(11)
(12) With the SSRAA hatchery located near the project site, existing information will help determine how to
avoid obstructing fish and wildlife movement through the area. The permitting process will also help
determine what fish and wildlife movement is like at the project site.
(13) Placement of the diversion structure below the lake, so that the lake level is not impacted, will protect
any recreational use of the lake.
(14)
(15)
(16)
(b) List the authorizations for state and federal leases, easements, contracts, rights-of-way, water rights, or permits for
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 13 of 18
mineral and petroleum resource extraction you have applied for or received. We will likely have to apply for a
ADF&G Habitat Permit, COE Individual Permit, DNR-Easement, a DNR water rights permit, and will
need some agreement with the SSRAA hatchery.
11 AAC 112.240. Utility routes and facilities.
Standard:
(a) Utility routes and facilities must be sited inland from beaches and shorelines unless
(1) the route or facility is water-dependent or water related; or
(2) no practicable inland alternative exists to meet the public need for the route or facility.
(b) Utility routes and facilities along the coast must avoid, minimize, or mitigate
(1) alterations in surface and ground water drainage patterns;
(2) disruption in known or reasonably foreseeable wildlife transit;
(3) blockage of existing or traditional access.
Evaluation:
(a) If the proposed utility route or facility is sited adjacent to beaches or shorelines, explain how the route or facility
is water dependent water related or why no practical inland alternative exits.
This is a hydroelectric project, which is dependant upon the use of water that comes from Neck Lake, would
use water from the lake outlet stream passing water through a pipe to the powerhouse and discharge the water
back into the lake outlet stream above the SSRAA hatchery. Also, in order to get the most efficient pressure
from the water source to generate electricity, the powerhouse must be placed as far down in elevation as is
possible, hence this means usually being on or near a shoreline.
(b) If the proposed utility route or facility is sited along the coast, explain how you will avoid, minimize or mitigate:
(1) alterations in surface and ground water drainage patterns; The water that would normally drain from the lake
will instead pass through the pipe and either be discharged back into the outlet stream near its mouth, or
nearby, so that the net effect is that the same water is still ending up in the marine water as it normally would.
Ground water will be diverted, where necessary, around project features, and where necessary, catchbasins
will capture runoff to filter out any sediment that may come of the site. Ground water drainage patterns will
not be significantly impacted. Water in the outlet stream will at times spill over the diversion structure, but
the bypassed reach of the stream is not anadromous habitat. The SSRAA hatchery does place fry in the lake,
so an accommodation for their out-migration period would be made to project operations.
(2) disruption in known or reasonably foreseeable wildlife transit; Disruption could occur during construction due
to activity and noise. Project features will likely be installed to minimize impacts to wildlife movement where
feasible and necessary. However, no known wildlife transits are presently known to exist. As mentioned
above, fry are placed in Neck Lake by the SSRAA hatchery, so operation of the project would have to allow
for their out-migration so that this is not impacted.
(3) blockage of existing or traditional access.
Blockage of existing uses of the area are not expected as project features should be either able to avoid or co-
exist with current access.
11 AAC 112.250. Timber harvest and processing.
Standard:
AS 41.17 (Forest Resources and Practices Act) and the regulations adopted under that chapter with respect to the harvest
and processing of timber are incorporated into the program and constitute the components of the program with respect to
those purposes.
Evaluation:
Does your activity involve harvesting or processing of timber? Yes No X
If yes, please explain how your proposed project meets the standards of the State Forest Resources and Practices Act.
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 14 of 18
11 AAC 112.260. Sand and gravel extraction.
Standard:
Sand and gravel may be extracted from coastal waters, intertidal areas, barrier islands, and spits if there is no practicable
alternative to coastal extraction that will meet the public need for the sand or gravel.
Evaluation:
If your proposed project includes extracting sand or gravel from coastal waters, intertidal areas, barrier islands or spits,
please explain why there is no practicable alternative to coastal extraction that meets the public need for sand or gravel.
11 AAC 112.270. Subsistence.
Standard:
(a) A project within a subsistence use area designated by the department or under 11 AAC 114.250(g) must avoid or
minimize impacts to subsistence uses of coastal resources.
(b) For a project within a subsistence use area designated under 11 AAC 114.250(g), the applicant shall submit an
analysis or evaluation of reasonably foreseeable adverse impacts of the project on subsistence use as part of
(1) a consistency review packet submitted under 11 AAC 110.215; and
(2) a consistency evaluation under 15 C.F.R. 930.39, 15 C.F.R. 930.58, or 15 C.F.R. 930.76.
(c) Repealed 10/29//2004, Register 172.
(d) Except in nonsubsistence areas identified under AS 16.05.258, the department may, after consultation with the
appropriate district, federally recognized Indian tribes, Native corporations, and other appropriate persons or groups,
designate areas in which a subsistence use is an important use of coastal resources as demonstrated by local usage.
(e) For purposes of this section, "federally recognized Indian tribe," "local usage", and "Native corporation" have the
meanings given in 11 AAC 114.990.
Evaluation:
(a) Is your proposed project located within a subsistence use area designated by a coastal district?
Yes No X
If yes, please describe how the proposed project is designed to “avoid or minimize impacts to subsistence uses of coastal
resources:”
(b) If your project is located in a subsistence use area designated by the coastal district, provide an analysis or evaluation
of its reasonably foreseeable adverse impacts to the subsistence uses.
(c) No response required.
(d) If your project is not located in a designated subsistence use area, please describe any subsistence uses of coastal
resources within the project area. Please be advised that subsistence use areas may be designated by the department
during a review.
(e) No response required.
11 AAC 112.280. Transportation routes and facilities.
Standard:
Transportation routes and facilities must avoid, minimize, or mitigate
(1) alterations in surface and ground water drainage patterns;
(2) disruption in known or reasonably foreseeable wildlife transit; and
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 15 of 18
(3) blockage of existing or traditional access.
Evaluation:
If your proposed project includes transportation routes or facilities, describe how it avoids, minimizes, or mitigates
(1) alterations in surface and ground water drainage patterns;
(2) disruption in known or reasonably foreseeable wildlife transit; and
(3) blockage of existing or traditional access.
11 AAC 112.300. Habitats.
Standard:
(a) Habitats in the coastal area that are subject to the program are
(1) offshore areas;
(2) estuaries;
(3) wetlands;
(4) tideflats;
(5) rocky islands and sea cliffs;
(6) barrier islands and lagoons;
(7) exposed high-energy coasts;
(8) rivers, streams, and lakes and the active floodplains and riparian management areas of those rivers, streams, and
lakes; and
(9) important habitat.
(b) The following standards apply to the management of the habitats identified in (a) of this section:
(1) offshore areas must be managed to avoid, minimize, or mitigate significant adverse impacts to competing uses such
as commercial, recreational, or subsistence fishing, to the extent that those uses are determined to be in competition with
the proposed use;
(2) estuaries must be managed to avoid, minimize, or mitigate significant adverse impacts to
(A) adequate water flow and natural water circulation patterns; and
(B) competing uses such as commercial, recreational, or subsistence fishing, to the extent that those uses are determined
to be in competition with the proposed use;
(3) wetlands must be managed to avoid, minimize, or mitigate significant adverse impacts to water flow and natural
drainage patterns;
(4) tideflats must be managed to avoid, minimize, or mitigate significant adverse impacts to
(A) water flow and natural drainage patterns; and
(B) competing uses such as commercial, recreational, or subsistence uses, to the extent that those uses are determined to
be in competition with the proposed use;
(5) rocky islands and sea cliffs must be managed to
(A) avoid, minimize, or mitigate significant adverse impacts to habitat used by coastal species; and
(B) avoid the introduction of competing or destructive species and predators;
(6) barrier islands and lagoons must be managed to avoid, minimize, or mitigate significant adverse impacts (A) to flows
of sediments and water;
(B) from the alteration or redirection of wave energy or marine currents that would lead to the filling in of lagoons or the
erosion of barrier islands; and
(C) from activities that would decrease the use of barrier islands by coastal species, including polar bears and nesting
birds;
(7) exposed high-energy coasts must be managed to avoid, minimize, or mitigate significant adverse impacts
(A) to the mix and transport of sediments; and
(B) from redirection of transport processes and wave energy;
(8) rivers, streams, and lakes must be managed to avoid, minimize, or mitigate significant adverse impacts to
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 16 of 18
(A) natural water flow;
(B) active floodplains; and
(C) natural vegetation within riparian management areas; and
(9) important habitat
(A) designated under 11 AAC 114.250(h) must be managed for the special productivity of the habitat in accordance with
district enforceable policies adopted under 11 AAC 114.270(g); or
(B) identified under (c)(1)(B) or
(C) of this section must be managed to avoid, minimize, or mitigate significant adverse impacts to the special productivity
of the habitat.
(c) For purposes of this section,
(1) "important habitat" means habitats listed in (a)(1) – (8) of this section and other habitats in the coastal area that are
(A) designated under 11 AAC 114.250(h);
(B) identified by the department as a habitat
(i) the use of which has a direct and significant impact on coastal water; and
(ii) that is shown by written scientific evidence to be biologically and significantly productive; or
(C) identified as state game refuges, state game sanctuaries, state range areas, or fish and game critical habitat areas
under AS 16.20;
(2) "riparian management area" means the area along or around a waterbody within the following distances, measured
from the outermost extent of the ordinary high water mark of the waterbody:
(A) for the braided portions of a river or stream, 500 feet on either side of the waterbody;
(B) for split channel portions of a river or stream, 200 feet on either side of the waterbody;
(C) for single channel portions of a river or stream, 100 feet on either side of the waterbody;
(D) for a lake, 100 feet of the waterbody.
Evaluation:
(a) List the habitats from (a) above that are within your proposed project area or that could be affected by your proposed
project.
Wetlands, stream
(b) Describe how the proposed project avoids, minimizes, or mitigates impacts to each of the identified habitat(s) in
section (a) above. Wetlands will be avoided, when possible, otherwise impacts will be mitigated by keeping
any corridor through wetlands to a minimum, using Best Management Practices to keep sediment from
reaching wetlands or streams; the lake outlet stream would be dewatered part of the time, but unless fish
habitat is found there it will have a minimal impact; the fry put in Neck Lake by the SSRAA hatchery will
require some adjustment to operations to allow them to out-migrate at a certain period in time.
(c) No response required.
11 AAC 112.310. Air, land and water quality
Standard:
Not withstanding any other provision of this chapter, the statutes and regulations of the Department of Environmental
Conservation with respect to the protection of air, land, and water quality identified in AS 46.40.040(b) are incorporated
into the program and, as administered by that department, constitute the exclusive components of the program with
respect to those purposes.
Evaluation: No response required.
11 AAC 112.320. Historic, prehistoric, and archeological resources.
Standard:
(a) The department will designate areas of the coastal zone that are important to the study, understanding, or
illustration of national, state, or local history or prehistory, including natural processes.
(b) A project within an area designated under (a) of this section shall comply with the applicable requirements of
AS 41.35.010 – 41.35.240 and 11 AAC 16.010 – 11 AAC 16.900.
Evaluation:
(a) Have you contacted the State Historic Preservation Office (SHPO) to see if your project is in a designated area
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 17 of 18
of the coastal zone that is important to the study, understanding, or illustration of national, state, or local history or
prehistory, including natural processes?
SHPO will be contacted to determine if the project site will require further investigation via an archaeologist.
(b) If your project is within an area designated under (a) of this section, how will you comply with the applicable
requirements in the statutes and regulations listed in (b)?
Affected Coastal District Enforceable Policies
Evaluate each applicable district enforceable policy using a format similar to the one you completed above for the
State Standards. District enforceable policies are available at 5http://alaskacoast.state.ak.us/. If you need more space
for an adequate explanation of any of the applicable district enforceable policies, please attach additional pages to the end
of this document.
Applicable District Plan(s) City of Thorne Bay
Enforceable Policy: 2: Energy Facilities
Evaluation: This coastal district does not have enforceable policies related to energy facilities.
Enforceable Policy: 5.1: c) Within the 50-foot buffer, water-dependent structures and access to such
structures may be allowed.
Evaluation: Because this is a water-dependent project and it will be necessary for structures to be within
the 50-foot buffer of the outlet stream, this project would be allowed under this enforceable policy.
Certification Statement
The information contained herein is true and complete to the best of my knowledge. I certify that the proposed
activity complies with, and will be conducted in a manner consistent with, the Alaska Coastal Management
Program.
___________________________________________________ ____________________________
Signature of Applicant or Agent Date
Note: Federal agencies conducting an activity that will affect the coastal zone are required to submit a federal
consistency determination, per 15 CFR 930, Subpart C, rather than this certification statement.
ACMP has developed a guide to assist federal agencies with this requirement. Contact ACMP to obtain a copy.
This certification statement will not be complete until all required State and federal authorization requests have
been submitted to the appropriate agencies.
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 18 of 18
Project Description: Please provide or attach a brief description of your project including the planned
work, any effects to coastal uses and resources and how your project is being designed to avoid, minimize
and mitigate those effects.
Please see the attached project description.
Project Area: Please provide or attach a map of your project location and your proposed work. (Including nearest
community, the name of the nearest land feature or body of water, and other legal description such as a survey or lot
number.)
Nearest Community: Whale Pass
Nearest Waterbody: Neck Lake and its outlet stream and the marine waterbody of Whale Passage
Legal Survey Description: T66S, R79E, Section 35, CRM, Petersburg (A-4) quadrangle.
SCHEDULE
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3PHASE I: ReconnaissancePHASE II: Resource Assessment, Feasibility Analysis, Conceptual DesignTopographic MappingConceptual DesignEnvironmental SurveysGeotechnical InvestigationsPHASE III: Final Design and PermittingPermit Application PreparationPermit Application ProcessingFinal DesignPHASE IV: ConstructionMobilizationAccess RoadIntakePenstockGenerating Equipment ProcurementPowerhouseUpgrade Transmission LineTesting and Start-UpLEGEND: <-- Procurement and off-site fabrication <-- On-site constructionNECK LAKE HYDROELECTRIC PROJECTDESIGN AND CONSTRUCTION SCHEDULEQ420082012201320142011
LETTERS OF SUPPORT
RESUME’S
COST WORKSHEET
Renewable Energy Fund Round 4
Project Cost/Benefit Worksheet
RFA AEA11-005 Application Cost Worksheet Page 1 7-21-10
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. 1,000 MWh annual hydroelectric output
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 Railbelt 1 grid, leave this section blank)
i. Number of generators/boilers/other 3
ii. Rated capacity of generators/boilers/other 330 kW combined
iii. Generator/boilers/other type Diesel
iv. Age of generators/boilers/other 15 years
v. Efficiency of generators/boilers/other 11.3 kWh/gal
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $23,000
ii. Annual O&M cost for non-labor $1,000, excluding fuel
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] 306,000 kWh sold (2008)
ii. Fuel usage
Diesel [gal] 25,000 gal (2008)
Other
iii. Peak Load 63 kW
iv. Average Load 49 kW
v. Minimum Load 35 kW
vi. Efficiency 11.3 kWh/gal
vii. Future trends Stable, use of electricity may increase with less expensive rates
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
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 Round 4
Project Cost/Benefit Worksheet
RFA AEA11-005 Application Cost Worksheet Page 2 7-21-10
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)
[kW or MMBtu/hr]
124 kW
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 1,000,000 kWh max., 300,000 kWh w/current load
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other
4. Project Cost
a) Total capital cost of new system $2,219,000 (est. Phase IV)
b) Development cost $221,000 (est. Phases I, II, and III)
c) Annual O&M cost of new system $20,000 (2009 est.)
d) Annual fuel cost No fuel cost
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 25,000 gal/yr
ii. Heat
iii. Transportation
b) Current price of displaced fuel $2.97/gal (2010), 3.75% escalation for 20 years
c) Other economic benefits Not estimated.
d) Alaska public benefits Reduced PCE ($4,000,000); reduced diesel emissions
6. Power Purchase/Sales Price
a) Price for power purchase/sale N/A; AP&T is the public utility for this community
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 2.9
Payback (years) Not calculated
GRANT BUDGET FORM
Renewable Energy Fund Grant Round IV Grant Budget Form 7-21-10 Milestone or Task Phase III – 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 Permit application, processing, and field studies April 2013 $ 26,000 $ 7,000 Cash, labor & benefits $ 33,000 Final design April 2013 $ 64,000 $ 16,000 Cash, labor & benefits $ 80,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ 90,000 $ 23,000 $ 113,000 Budget Categories: Direct Labor & Benefits $ 88,000 $ 22,000 Direct labor & benefits $ 110,000 Travel & Per Diem $ 2,000 $ 1,000 Cash $ 3,000 Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ 90,000 $ 23,000 $ 113,000 Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)- Add additional pages as needed
Renewable Energy Fund Grant Round IV Grant Budget Form 7-21-10 Milestone or Task Phase IV 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 Construction management December 2014 $ 66,000 $ 16,000 Cash, labor & benefits $ 82,000 Mobilization October 2013 $ 108,000 $ 27,000 Cash, labor & benefits $ 135,000 Access road January 2014 $ 44,000 $ 10,000 Cash, labor & benefits $ 54,000 Diversion structure April 2014 $ 427,000 $ 106,000 Cash, labor & benefits $ 533,000 Penstock August 2014 $ 184,000 $ 45,000 Cash, labor & benefits $ 229,000 Powerhouse October 2014 $ 555,000 $ 139,000 Cash, labor & benefits $ 694,000 Tailrace October 2014 $ 105,000 $ 24,000 Cash, labor & benefits $ 129,000 Transmission facilities October 2014 $ 291,000 $ 72,000 Cash, labor & benefits $ 363,000 TOTALS $ 1,780,000 $ 439,000 $ 2,219,000 Budget Categories: Direct Labor & Benefits $ 220,000 $ 55,000 Direct labor & benefits $ 275,000 Travel & Per Diem $ 20,000 $ 5,000 Cash $ 25,000 Equipment $ 565,000 $ 135,000 Cash $ 700,000 Materials & Supplies $ 0 $ 0 $ 0 Contractual Services $ 295,000 $ 74,000 Cash $ 369,000 Construction Services $ 680,000 $ 170,000 Cash, labor & benefits $ 850,000 Other $ 0 $ 0 $ 0 TOTALS $ 1,780,000 $ 439,000 $ 2,219,000
Renewable Energy Fund Grant Round IV Grant Budget Form 7-21-10 Project Milestones that should be addressed in Budget Proposal Reconnaissance Feasibility Design and Permitting Construction 1. Project scoping and contractor solicitation. 2. Resource identification and analysis 3. Land use, permitting, and environmental analysis 5. Preliminary design analysis and cost 4. Cost of energy and market analysis 5. Simple economic analysis 6. Final report and recommendations 1. Project scoping and contractor solicitation. 2. Detailed energy resource analysis 3. Identification of land and regulatory issues, 4. Permitting and environmental analysis 5. Detailed analysis of existing and future energy costs and markets 6. Assessment of alternatives 7. Conceptual design analysis and cost estimate 8. Detailed economic and financial analysis 9, Conceptual business and operations plans 10. Final report and recommendations 1. Project scoping and contractor solicitation for planning and design 2. Permit applications (as needed) 3. Final environmental assessment and mitigation plans (as needed) 4. Resolution of land use, right of way issues 5. Permit approvals 6. Final system design 7. Engineers cost estimate 8. Updated economic and financial analysis 9. Negotiated power sales agreements with approved rates 10. Final business and operational plan 1. Confirmation that all design and feasibility requirements are complete. 2. Completion of bid documents 3. Contractor/vendor selection and award 4. Construction Phases – Each project will have unique construction phases, limitations, and schedule constraints which should be identified by the grantee 5. Integration and testing 6. Decommissioning old systems 7. Final Acceptance, Commissioning and Start-up 8. Operations Reporting
Renewable Energy Fund Round IV
RFA AEA11-005 Grant Budget Instructions Page 1 of 5 7-21-10
Grant Budget Instructions
NOTICE TO GRANTEES
Reimbursement to a Grantee under this program is on a cost reimbursable basis. In
accordance with the terms of the grant a Grantee is required to submit certified requests
for reimbursements that document commitments and expenditures and demonstrate
meeting milestones identified in the grant.
A proposed reimbursement schedule tied to completion of milestones must be identified
in the applicant’s proposal. The Alaska Energy Authority (“AEA” or “Authority”) will n ot
approve a reimbursement schedule that does not reflect costs or commitments tied to
the accomplishment of milestones identified in the grant. The final reimbursement
schedule is subject to negotiation and will be incorporated into the grant agreement.
The Authority may authorize a percentage of grant funds, up to 20% depending on the
type of grant, as an advance reimbursement at the start up of the grant.
The Authority may also withhold up to 20% of the total grant subject to completion of the
project and submission of final reports and other documentation that may be required by
the grant.
A Grantee is required to account for and document all expenditures of grant and
matching funds including documentation of expenditures on any advanced
reimbursement. All requests for reimbursement are subject to audit by the Authority.
The Grantee is also required to comply with 2.AAC.45.010, the State Single Audit
regulations.
1. Budget Form
Information concerning the proposed grant budget needs to be provided on the Grant Budget
Form. The Grantee must tie their budget request to the proposed milestones they propose in
their application. Examples of milestones for each project phase are included with the
budget form and in Section 2 of the RFA.
For the purposes of determining potential cash-flow and a reimbursement schedule Grantees
should use the form to identify the proposed date that the milestone would be met, the
anticipated amount of grant funds to be expended to meet that milestone, and the amount
and type of matching resources they intend to apply to that milestone.
The bottom part of the form includes the allowable Budget Categories and is intended to be a
summary of types of cost for each phase of the grant.
2. Allowable Costs
Allowable costs for a grant include all reasonable and ordinary costs for direct labor and
benefits, travel, equipment, supplies, contractual services, construction services, and other
direct costs identified that are necessary for and incurred as a direct result of the project.
Grant Budget Instructions Renewable Energy Fund Round IV
RFA AEA11-005 Grant Budget Instructions Page 2 of 5 7-21-10
A cost is reasonable and ordinary if, in its nature or amount, it does not exceed that which would
be incurred by a prudent person under the circumstances prevailing at the time the decision was
made to incur the costs.
Allowable costs under this grant include all reasonable and ordinary costs for direct labor &
benefits, travel, equipment, supplies, contractual services, construction services, and other
direct costs identified and approved in the Project budget that are necessary for and incurred as
a direct result of the Project and are consistent with the requirements of the grant agreement.
A cost is reasonable and ordinary if, in its nature and amount, it does not exceed that which
would be incurred by a prudent person under the circumstances prevailing at the time the
decision was made to incur the costs.
Allowable costs are only those costs that are directly related to activities authorized by the Grant
Agreement and necessary for the Project. The categories of costs and additional limits or
restrictions are listed below:
a. Direct Labor & Benefits
Include salaries, wages, and employee benefits of the Grantee’s employees for that portion
of those costs attributable to the time actually devoted by each employee to, and necessary
for the Project. Direct labor costs do not include bonuses, stock options, other payments
above base compensation and employee benefits, severance payments or other termination
allowances paid to the Grantee’s employees.
b. Travel, Meals, or Per Diem
Include reasonable travel expenses necessary for the Project. These include necessary
transportation and meal expenses or per diem of Grantee employees for which expenses
the employees are reimbursed under the Grantee’s standard written operating practice for
travel and per diem or the current State of Alaska Administrative Manual for employee
travel.
c. Equipment
Include costs of acquiring, transporting, leasing, installing, operating, and maintaining
equipment necessary for the Project, including sales and use taxes. Equipment owned by
the Grantee is to be charged to the project at the monthly rates contained in the Data Quest
Blue Book. The rates for equipment owned by the Grantee for less than a month’s duration
are to be computed on an hourly charge determined by dividing the monthly rate by 176.
Equipment rented by the Grantee can be charged to the grant at actual invoiced charge
rates, subject to a maximum amount equal to the hourly rates contained in the Data Quest
Blue Book. The Authority’s Project Manager must approve all equipment charge rates to be
used by the Grantee. The Data Quest Blue Book is available to the AEA Project Managers
and grantees may contact them for current allowable rates.
Grant Budget Instructions Renewable Energy Fund Round IV
RFA AEA11-005 Grant Budget Instructions Page 3 of 5 7-21-10
Subject to prior approval of the Authority’s Project Manager, costs or expenses necessary to
repair or replace equipment damage or losses incurred in performance of work under the
grant may be allowed. However, damage or losses that result from the Grantee’s
employees, officer’s, or contractor’s gross negligence, willful misconduct, or criminal conduct
will not be allowed.
d. Materials and Supplies
Include costs of material, office expenses, communications, computers, and supplies
purchased or leased by the Grantee necessary for the Project.
e. Contractual services
Include the Grantee’s cost of contract services necessary for the Project. Services may
include costs of contract feasibility studies, project management services, engineering and
design, environmental studies, field studies, and surveys for the project as well as costs
incurred to comply with ecological, environmental, and health and safety laws.
f. Construction Services
For construction projects this includes the Grantee’s cost for construction contracts, labor,
equipment, materials, insurance, bonding, and transportation necessary for the Project.
Work performed by the Grantee’s employees during construction may be budgeted under
direct labor and benefits. Contracted project management or engineering may be budgeted
under contractual services and major equipment purchases made by the Grantee may be
budgeted under equipment.
g. Other Direct Costs
In addition to the above the following expenses necessary for the Project may be allowed.
• Net insurance premiums paid for insurance required for the grant Project;
• Costs of permits and licenses for the grant Project;
• Non-l itigation legal costs for the Project directly relating to the activities; in this
paragraph, “non-litigation legal costs” includes expenses for the Grantee’s legal staff and
outside legal counsel performing non-litigation legal services;
• Office lease/rental payments;
• Other direct costs for the Project directly relating to the activities and identified in the
grant documents; and/or
• Land or other real property or reasonable and ordinary costs related to interests in land
including easements, right-of-ways, or other defined interests.
3. Specific Expenditures not allowed
Ineligible expenditures include costs for overhead, lobbying, entertainment , alcohol, litigation,
payments for civil or criminal restitution, judgments, interest on judgments, penalties, fines,
costs not necessary for and directly related to the grant Project, or any costs incurred before the
beginning date of the grant as indicated on the signature page.
Grant Budget Instructions Renewable Energy Fund Round IV
RFA AEA11-005 Grant Budget Instructions Page 4 of 5 7-21-10
Overhead costs described in this section include:
• salaries, wages, applicable employee benefits, and business-related expenses of the
Grantee’s employees performing functions not directly related to the grant Project;
• office and other expenses not directly related to the grant Project; and
• costs and expenses of administration, accounting, human resources, training, property
and income taxes, entertainment, self-insurance, and warehousing.
4. Match and Cost Sharing
If the Applicant is providing a match, it is should be detailed either as a specific dollar amount or
as a percentage of the total project budget. The type and amount of matching contributions
should be discussed in the application under section two.
Cost sharing or matching is that portion of the Project costs not borne by the Authority. The
Authority will accept all contributions, including cash and in-kind, as part of the Applicants’ cost
sharing or matching when such contributions meet the following criteria:
• Are provided for in the Project budget;
• Are verifiable from the Applicant’s records;
• Third party costing sharing contributions are verifiable (with a letter of intent or similar
document);
• Are not included as contributions for another state or federally assisted project or
program (i.e., the same funds cannot be counted as match for more than one program);
• Are necessary and reasonable for proper and efficient accomplishment of the Project or
program objectives;
• Are allowable costs;
• Are not paid by the State or federal government under another award, except for
authorized by the State or federal statute to be used for cost sharing or matching;
• Must be incurred within the grant eligible time period.
Any match proposed with the application will be required in the Grant award and the Grantee will
be required to document the use of the proposed matching funds or in-kind contributions with
their request for reimbursement.
Previous Renewable Energy Fund grants will not be counted as match.
5. Valuing In-Kind Support as Match
If the Applicant chooses to use in-kind support as some; or, its entire match, the values of those
contributions will be reviewed by the Authority at the time the budget is approved. The values will
be determined as follows:
• The value of real property will be the current fair market value as determined by an
independent third party or a valuation that is mutually agreed to by the Authority and the
Applicant and approved in the grant budget.
• The value assessed to Applicant equipment or supplies will not exceed the approved
equipment rates or fair market value of the supplies at the time the grant is approved or
amended.
Grant Budget Instructions Renewable Energy Fund Round IV
RFA AEA11-005 Grant Budget Instructions Page 5 of 5 7-21-10
Equipment usage will be valued based on approved usage rates that are determined in accordance
with the item c. above. Rates paid will not exceed the fair market value of the equipment if
purchased.
Rates for donated personal services will be based on rates paid for similar work and skill level in the
recipient’s organization. If the required skills are not found in the recipient organization, rates will
be based on rates paid for similar work in the labor market. Fringe benefits that are reasonable,
allowable, and allocable may be included in the valuation.
Transportation and lodging provided by the Applicant for non-local labor will not exceed the
commercial rates that may be available within the community or region.
6. Grant Disbursements
Applicants are reminded that they must request disbursement of grant funds in the form and
format required by the Authority with appropriate back-up documentation and certifications.
This format will be provided by the Authority.
The back-up documentation must demonstrate the total costs incurred are allowable, and reflect
the amount being billed. Documentation must include:
• A summary of direct labor costs supported by timesheets or other valid time record to
document proof of payment;
• Travel and per diem reimbursement documentation;
• Contractor or vendor payment requests; and
• Invoices.
Payment of grant funds will be subject to the Applicant complying with its matching contribution
requirements of the proposed grant.
Payment of grant funds will be made by AEA to the Grantee within 30 days of receipt of a
properly completed, supported, and certified Reimbursement Request.