HomeMy WebLinkAboutCoffman Cove Port St. Nick Fish Hydro Grant Application4
Renewable Energy Fund Round IV
Grant Application
AEA 11-005 Application Page 1 of 13 7/21/2010
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-IV.html
Grant Application
Form
GrantApp4.doc Application form in MS Word that includes an outline
of information required to submit a complete
application. Applicants should use the form to assure
all information is provided and attach additional
information as required.
Application Cost
Worksheet
Costworksheet4.doc Summary of Cost information that should be
addressed by applicants in preparing their application.
Grant Budget Form GrantBudget4.doc A detailed grant budget that includes a breakdown of
costs by milestone and a summary of funds available
and requested to complete the work for which funds
are being requested.
Grant Budget Form
Instructions
GrantBudgetInstructions4.pdf Instructions for completing the above grant budget
form.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for completion of each phase.
If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 2 of 13 7/21/2010
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of Coffman Cove
Type of Entity:
Municipal Government
Mailing Address
PO Box 18135
Coffman Cove, AK 99918
Physical Address
102 Denali
Coffman Cove, AK 99918
Telephone
907-329-
2233
Fax
329-2212
Email
coffmancove@msn.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Elaine Price
Title
Projects Manager
Mailing Address
PO Box 18135 Coffman Cove, AK 99918
Telephone
907-329-
2233
Fax
329-2212
Email
coffmancove@msn.com
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
X A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
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
or
No
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
or
No
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.)
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 3 of 13 7/21/2010
SECTION 2 – PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Type in your answer here and follow same format for rest of the application.
Port St. Nick Fish Enhancement Hydropower
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project.
Answer here.
Port St. Nick in Craig Alaska with benefit to Craig and Coffman Cove and all other island
communities.
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 Design and Permitting
Feasibility x Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The City of Coffman Cove and Craig partnered in a King Salmon Enhancement Program. We
built a hatchery at the Craig water treatment plant with Pacific Sustainable Salmon Funds. This
was the first year of return for Port St Nick’s fish. Upwards of 6,000 fish returned to the area.
Next year will be Coffman Cove’s first year of returning fish. The Port St. Nick site was chosen
due to the availability of generous quantities of high pressure water feeding the Craig water
plant. An 8 inch line is currently side tapped into a 12 inch line to feed the hatchery. Inside the
hatchery there are pressure reduction valves to step down the pressure from 250 lbs to an
operational pressure of 10 PSI. This results in a waste of hydro energy that could be used to
drive a small hydro electrical plant effectively producing power and depressurizing and
providing the hatchery needs simultaneously. Electricity produced from a small hydro plant
could be used to provide power to the grid, be used to supplement or provide power to the water
plant and be purchased to provide funds for rearing of King Salmon smolts.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 4 of 13 7/21/2010
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
The project will provide sustainable revenue for the King Salmon Enhancement Program.
Operational expenses for the hatchery are $130,000 per year. This covers labor, equipment,
supplies, feed and utilities. While this is considered very cheap when compared to most
hatcheries for the dollar cost per smolt it is still a sizable budget for small communities with no
state contribution. The cost of the hydro electrical project is very small and would provide
funding for the fish enhancement project forever. The sale of electricity to Alaska Power
Company and reduced costs to the Craig Water Treatment Plant would pay all the expenses of
the hatchery. The response to this year’s fish return has been overwhelming. The Fish
Enhancement has benefited the Troll Fishery, sport fishermen, Charter businesses, subsistence
fishing, and the local economy in Craig. Using excess energy from the existing hatchery project
to produce electricity that will pay all the expenses will allow continuing production of fish since
our grant runs out in March 2011.
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.
This project is fairly cheap and easy since the water supply is already in place. We are asking for
$158,400. The Troller’s Association has expressed support for the match. Between Coffman
Cove and Craig we can share the match if the Troller’s Association does not follow up on their
offer. Also, Coffman Cove has a Fish Enhancement Fund we have been contributing to for
expenses once our grant is over that could be the match. The Hydro Project would eliminate the
need for future funding for hatchery expenses.
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. $ 158,400
2.7.2 Other Funds to be provided (Project match) $ 39,600
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 198,000
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)
$ 198,000
2.7.5 Estimated Direct Financial Benefit (Savings) $ 130,000 per year
forever for just the fish
project plus savings for
water treatment plant
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 5 of 13 7/21/2010
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.)
$
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.
Al Edsall, Alaska Aquaculture Service, Fisheries Project Management and Consultant, PO Box
101, Klawock, AK 99925, 907-755-2454, aedsall@aptalaska.net
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.)
Once the grant papers are signed equipment and supplies will be ordered. Once everything is on
site construction will take 30-60 days. Project should be completed before the end of 2011.
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them. The
Milestones must also be included on your budget worksheet to demonstrate how you propose to
manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)
The first task will be engineering the project, the second will be ordering the equipment, the third
will be construction. Each task will be reimbursed as completed.
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.
Al Edsall has experience with fisheries and hydro projects. John Thorington fabricated all the
plumbing for the hatchery and suggested the hydro possibilities. The only larger purchases will
be the Cornell hydro 55 K turbine and the US Motor 55 KW generator. These are brand name
items that have proven dependable that will be purchased from a reputable vendor. All other
supplies will be purchased from HD Fowler and other Seattle based distributors. The building
will be purchased locally from B3 contractors, all labor will be local hire.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 6 of 13 7/21/2010
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Normal reporting requirements.
3.6 Project Risk
Discuss potential problems and how you would address them.
The only problems could be getting the equipment. It is not foreseen as being a problem. There
are not any permitting requirements since the facility is already in operation and this will be a
modification.
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.
The Port St. Nick facility will generate 55KW of electricity. Currently the Island Wide rate is 20
cents per KW. I do not know how much power the water treatment plant or the hatchery uses.
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.
Currently the Port St. Nick Water Treatment Plant and King Salmon Hatchery are using
electricity provided by Alaska Power Company (AP&T). The power source for Craig is the
Black Bear Lake Hydropower. I do know they are concerned about overtaxing their potential
electrical generation from Black Bear but I do not know any of the details.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 7 of 13 7/21/2010
4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
The existing electrical system on Prince of Wales is becoming over taxed. With the addition of
Coffman Cove and Naukati on the Island Wide Grid more generation could be beneficial in
providing Alaska Power Company with added hydro power from this source. The power lines are
in place making use of this power source very cost effective.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
N/A
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
55 KW Hydro power system installed at the Port St Nick hatchery with existing water supply is
anticipated to produce $54,000 of revenue @ 15 cents per KWH.
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 land belongs to the City of Craig. They are in full support of this project.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 8 of 13 7/21/2010
None required. Simple modification of existing infrastructure.
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
This is a modification of an existing facility.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
The total project cost will be less than the $198,000 estimate. We are requesting $158,400 grant
matched by $39,600 in local money. The source of the money will be either the Troller’s
Association, shared by Coffman Cove and Craig, or Coffman Cove. The Troller’s Association
has given us a verbal commitment but we do not have anything in writing. They benefited by the
King Salmon last winter during the winter troll fishery. They caught over 600 fish that sold for
$6.50 a pound and up. Craig stands to benefit the most since they will no longer have operating
cost for the hatchery plus no electric bill for their water treatment plant. Coffman Cove has been
putting money aside for years to pay our share of the expenses of the hatchery when our grant
runs out. We can use this money for the match since the revenue generated by the hydro project
will cover all the expenses of the hatchery forever. Whoever pays the match stands to gain more
than the cost.
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 9 of 13 7/21/2010
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 costs are covered with the revenue generated.
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
Alaska Power Company. Besides the savings of electrical costs for the water treatment plant and
the hatchery the project will generate revenue from the sale of power to Alaska Power Company
that will fully fund the King Salmon Enhancement Project forever. A real savings of $130,000 per
year by itself.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
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
In 2005 construction on a King Salmon hatchery was built at Mile 6 Port St. Nick road to the
Craig water treatment plant. The concept for the hatchery is viewed as a economic opportunity to
increase the sport take of King salmon in the surrounding waters of Craig and Coffman Cove
creating a draw for increased charter boat opportunity and all the spinoff business that might
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 10 of 13 7/21/2010
result. The initial funding was from a $250,000 Alaska Sustainable Salmon fund grant. The City
of Craig also contributed a $50,000 matching grant from other sources as well as generous
logistical. Labor and material support. The City of Coffman Cove obtained a $1.2 million grant
from the Sustainable Salmon Fund that has completed the construction, outfitting and operation
of the facility for the last four years.
Currently the hatchery is in full production mode producing 250,000 Chinook smolts for release
into Port St. Nick and 250,000 smolts for release in Coffman Cove on the other side of Prince of
Wales Island. Coffman Cove has been severely impacted by cessation of logging and tourism has
become the mainstay of economic growth.
Funding for operation of the Port St. Nick project are public contributions (municipal and
private). In the near term, available funding for the operation will not cover operation expenses.
Operational expenses combined for the hatchery are $130,000 per year. This covers labor,
equipment, capital improvements and equipment replacement. The cost per number of smolts
raised is very cheap considering other hatcheries estimate the cost at one dollar per smolt.
Water quality and abundance is first and foremost the important factor in deciding a site for
hatchery operations. In the case of the Port St Nick Hatchery the site was chosen due to the
availability of generous quantities of high pressure water feeding the Craig water treatment plant.
An 8 inch line is currently side tapped into a 12 inch line to feed the hatchery. Inside the hatchery
there are pressure reduction valves to step down the pressure from 250 lbs to an operational
pressure of 10 PSI. This results in a waste of hydro energy that could be otherwise used to drive a
small hydro electrical plant effectively producing power and depressurizing and providing the
hatchery needs simultaneously. During the construction of the hatchery this was a recognized
fact and provisions were built into the construction so that a hydro plant operation could take
place at a future date. Pipe diameter for drains and delivery to fish rearing spaces were oversized
for gravity feed water delivery after de-pressurization and a provision for additional excess
drainage from a head box of surplus water not required for fish rearing. Electricity produced
from a small hydro plant could be used to provide power to the grid or be used to supplement or
provide power to the water plant and purchased to provide funds for rearing of smolts.
The fish return for the winter troll fishery was a small indication of what was a head for the
summer. Port St. Nick had so many King Salmon return they had to allow a subsistence beach
seine opening to handle all the fish that returned to the area. These fish averaged 30 pounds. It
was estimated over 6,000 fish returned. This was the first year for Port St Nick. Coffman Cove
is expecting its first year of fish return during the summer of 2011. There have already been
indicators of returning fish with an abundance this year of shakers. The economic impact has not
been felt yet for either community or the island at large. To be able to fund this program with
renewable sustainable hydro power is a winning proposition. Plus it would be green.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 11 of 13 7/21/2010
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
The City of Craig has a water treatment operator that will be on site daily. The City
maintains a maintenance crew. The Prince of Wales Hatchery in Klawock oversees the
daily requirements for the Port St. Nick Hatchery. Someone is always around to oversee
potential problems, maintenance and repairs.
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed
with work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
The potential for hydropower has been assessed. Part of the infrastructure is in place. We are in
the final phase of a $1.2 million Pacific Sustainable Salmon Fund Grant. Craig had a $250,000
grant. These funding sources have built the facility and raised fish for the last 5 years. The water
requirements are in place. Plumbing is done and the water is running. We just need to tap it.
SECTION 8– LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
letters of support from the community that would benefit from this project.
There is no opposition. A letter from the city of Craig is included.
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.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 12 of 13 7/21/2010
Include an estimate of budget costs by milestones using the form – GrantBudget3.doc
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 13 of 13 7/21/2010
SECTION 9 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant’s Project Manager, key staff, partners,
consultants, and suppliers per application form Section 3.1 and 3.4.
B. Cost Worksheet per application form Section 4.4.4.
C. Grant Budget Form per application form Section 9.
D. Letters demonstrating local support per application form Section 8.
E. An electronic version of the entire application on CD per RFA Section 1.6.
F. Authorized Signers Form.
G. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
H. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations.
Print Name Elaine Price
Signature
Title Projects Manager, City of Coffman Cove
Date 9-10-10