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HomeMy WebLinkAboutPoint Lay Phase IV AEA Application 9-2010Renewable Energy Fund Grant Application Point Lay Wind Generation Design FY'2011 North Slope Borough Project Location: Point Lay, Alaska ME) ENERGY Renewable Energy Fund Grant Application Round IV SECTION 1 — APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) North Slope Borough Type of Entity: Government and Electric Utility Mailing Address Physical Address P.O. Box 69 1274 Agviq Street Barrow, Alaska 99723 Barrow, AK 99723 Telephone Fax Email 907 852-2611 907 852-4145 Breft.goodwin@north-slope.org 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Title Kent Grinage Program Manager Jack Smith, Jr. Grants Administrator Mailing Address P.O. Box 69 Barrow, AK 99723 Telephone Fax Email (907) 852-0285 (Kent) (907) 852-4145 kent.grinage@north-slope.org (907) 852-0467 (Jack) jack.smithjr@north-slope.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) 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 X A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. AEA 11/005 Grant Application Page 2 of 43 09/08/2010 /4401ED ALASKA Renewable Energy Fund Grant Application Round IV SECTION 2 — PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title — (Provide a 4 to 5 word title for your project) Point Lay Wind/Diesel Design and Permitting 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 will take place in Point Lay, Alaska. Point Lay, Alaska will be the community affected by the outcomes of this project. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type X Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Reconnaissance X Design and Permitting Feasibility Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The North Slope Borough (NSB) envisions a wind energy and area -wide energy management system, consisting of wind diesel integration, end -use energy efficiency, automated building controls, and conservation. This phase of the project involves the final design and permitting for three anticipated wind turbines to supplement the existing power generation and distribution system for the community of Point Lay. Participants in the project include North Slope Borough, a contracted engineering/design firm, and Northern Power Systems of Barre, Vermont (wind turbine experts and supplier). The contractor will provide overall project management and electrical system engineering for the project, as well as, in the final phase of the project, the design and installation of all civil works, erection of the wind turbines, and installation of all ancillary electrical systems. Northern Power will provide Northwind 100B model wind turbines plus startup & commissioning services. AEA 11/005 Grant Application Page 3 of 43 09/08/2010 ®ALASKA Renewable Energy Fund Grant Application Round IV 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) The primary financial benefit from this project will be reduced fuel costs to the residents of Point Lay. Findings of wind resource versus load demand result in an estimated gross fuel savings of 47,000 gallons (operating at 100% availability) and 46,170 gallons (operating at 90% availability) of diesel fuel per year at the Point Lay plant, from efficiency improvements due to new automated switchgear, from diesel -powered generation being displaced by wind, and by displacing diesel -fired hot water heating with excess electrical energy from the wind turbines. In addition to the direct fuel reduction are the benefits of: - reduced long-term dependence on outside sources of energy; - reduced exposure to fuel price volatility; - reduced air pollution resulting from reducing fossil fuel combustion; - reduced possibility of spills from fuel transport & storage; and - reduced overall carbon footprint and its contribution to climate change. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. For the design and permitting phase of the project, the North Slope Borough is requesting funding in the amount of $400,000 The construction and commissioning phase of the project requires $3,993,000 to complete. Design & Permitting will cost $440,000. Based on published cost estimates of similar wind diesel projects proposed and existing in rural Alaska communities, this rough order of magnitude cost estimate is preliminary. We consulted with STG, Incorporated, the most experienced construction contractor for rural Alaska wind projects, to review and confirm our preliminary budget numbers. 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. $400,000 2.7.2 Other Funds to be provided (Project match) $40,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $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 $4,433,000 including estimates through construction) 2.7.5 Estimated Direct Financial Benefit (Savings) I $230,000/yr AEA 11/005 Grant Application Page 4 of 43 09/08/2010 �® ALASM Renewable Energy Fund Grant Application Round IV 2.7.6 Other Public Benefit (If you can calculate the benefit in $ 14,000 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. North Slope Borough's project management approach to this project, and to its overall energy upgrade program, is to utilize a team approach consisting of North Slope Borough staff, external consultants and general contractors. Mr. Kent Grinage will be the Program Manager and will be the contact for any technical questions. His resume is attached. Mr. Jack Smith is the Grants Administrator and will handle grant paperwork, amendments and financial matters. North Slope Borough provides a project team from its operating staff. The Program Manager, Kent Grinage, provides oversight to Project Administrators who interface with the Engineering Consultant and General Contractor. The PM and PA group provides internal focus and coordination of special projects including project development, planning, construction coordination, and reporting. The Engineering Consultant of the North Slope Borough provides technical input on generation and distribution issues to the team. Additionally, the engineering group provides specifications, design and drawings for North Slope Borough construction of diesel power plants and distribution systems. The Engineering Consultant provides construction administration and commissioning input on behalf of new construction performed by the North Slope Borough contractor. The manager of administrative services, Jack Smith, provides support in accounting, payables, financial reporting, and capitalization of assets in accordance with NSB guidelines. The project management team's structure is designed to provide flexibility for the North Slope Borough participants. They have operational responsibilities to the Borough as well as project development responsibilities. This project is being funded and completed in phases. This approach works well with the North Slope Borough's management style. The functional - interface relationships allow engineering tasks, village government and public relations tasks, procurement functions, and internal construction operations to be dovetailed into the project development process. Cross utilization of talent and resources is an advantage to the project delivery process, providing economies of scale for using project resources. For project delivery, an amalgamated team approach is utilized. To support the North Slope Borough team, design consultants and construction services managers are selected. Both disciplines are derived from a resource bank of professional firms with applicable histories of performance in rural Alaska. The construction services manager works concurrently with the design consultant through design development to provide constructability insight and value engineering to maximize the overall effectiveness of the final construction documents. AEA 11/005 Grant Application Page 5 of 43 09/08/2010 /440wF)ORITY ALENERGASHKA Renewable Energy Fund Grant Application Round IV If the design/permitting phase is funded and assuming there will be another round of funding available in 2011, design will be completed, construction funding secured, and construction will be in 2013. Concurrent with design development, material and equipment procurement packages are formulated by the General Contractor (GC) in collaboration with North Slope Borough's Program Manager. Each package is competitively procured or issued from NSB materials. Purchase orders are formulated with delivery dates consistent with dates required for barge or air transport consolidation. The GC tracks the shipments and provides handling services to and around the destination project sites. For the future phase, construction and commission, the GC is responsible for the construction activities for all project components of the facility upgrade. Local labor forces are utilized to the maximum extent possible to construct the projects. Local job training is provided as a concurrent operation under the management and direction of the GC. All construction costs, direct and indirect are reimbursed on a Fixed Fee reimbursement to the GC or paid directly by North Slope Borough. In the next phase, North Slope Borough will be responsible for managing the commissioning process in content with the GC, designers and vendors. That entails testing and training of operational personnel, as well as providing for all contract closeout documents. North Slope Borough's concern and objective is to have a managed project delivery approach from inception through operation. 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 summaa of dates below. Phase I Feasibility Study (Wind Study) Phase II Conceptual Design & Feasibility Study Phase III Design and Permitting Round IV Grant Award Announcement: Negotiation of Grant Agreement Authorization to Proceed: Permitting: Resolution of right-of-way issues Complete Electrical System Design: Complete Civil Works Design: Hire Installation Contractor: Engineer's Cost Estimate Final Business and Operational Plan Completed Phase IV Construction Order Wind Turbines & Towers: Turbines Ready to Ship: Complete Civil Works: Turbines On Site: completed on -going; to be completed by 5115111 05117111 08115111 09101111 08101111-07131112 08101111-07131112 05115112 05115112 06101112 08115112 08115112 03115112 09101112 08114112 10101112 AEA 11/005 Grant Application Page 6 of 43 09/08/2010 ®ALASHKA Renewable Energy Fund Grant Application Round IV Complete Turbine Erection & Electrical Works: 02101113 Integration and Testing 02128113 Complete Turbine Commissioning: 0311 S/13 Complete Secondary Load Controller Commissioning: 1011 S/13 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.) All project milestones for this Phase are identified in the budget worksheet as Attachment C in this application. Final Design and Permitting Phase The final design and permitting phase will begin as soon as the project has been funded by AEA. Permits Obtained: required by 12/31/2011 to allow time to hire contractor to be ready for start of construction season. 1. Project Scoping and Contractor Award for Planning and Design (10/1/11) The engineering constructor will be selected and a task order will be prepared for work planned for this phase. 2. Permit Applications (as needed) (08/2011-07/2012) Permit applications will be prepared and submitted. 3. Final Environmental Assessment and Mitigation Plans (as needed) (7/30/12) 4. Resolution of land use, ROW Issues (8/31/12) NSB will secure site control for future wind turbines. 5. Permit Approvals (05/12) 6. Final System Design (01/12-04/12) The engineering contractor will complete final design of the wind system and intertie. 7. Engineers Cost Estimate (05/12) 8. Negotiated Power Sales Agreements w/approved Rates of Applicable) 9. Final Business and Operational Plan (05/12) Anticipated Milestones for Construction Phase Authorization to Proceed: required as early as possible to allow turbines to be ordered. Order Wind Turbines & Towers: 6 months required from order to ready -to -ship date. Complete Civil Works: needs to be done by time turbines arrive on site. Complete Turbine Commissioning: needs to be done early enough in the season to allow time to commission and tune the secondary load controller. Complete Secondary Load Controller Commissioning 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. North Slope Borough will ultimately be responsible for successful completion of the project, using partners that have successfully installed similar systems in the recent past. Electrical AEA 11/005 Grant Application Page 7 of 43 09/08/2010 /44N'EED)ALASHKA Renewable Energy Fund Grant Application Round IV system engineering will be subcontracted, using current internal procurement practices and selection of engineering service providers from prequalified organizations. The contracted A&E firm will design the wind turbine foundations. NSB will subcontract for construction of the foundations and the contractor firm will manage that construction. One hundred kilowatt Northwind 100B wind turbines from Northern Power will be used. The permanent magnet, direct -drive NW 100/21 is the latest wind turbine model from Northern Power, based on earlier Northwind 100 kW wind turbine models that Alaska Village Electric Cooperative has installed and operated in wind/diesel applications for several years now. Developed in conjunction with NASA, NREL, and NSF specifically for remote use in extreme environments, the NW 100/21 embodies the most recent design practices in the industry. Northern Power's experience with wind/diesel control systems complements North Slope Borough's wind power needs. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. North Slope Borough will assign a project manager to the project. One responsibility of the project manager will be to compile periodic progress reports for use by the Authority. Monthly project coordination meetings will be held with the project team to track progress and address issues as they arise. 3.6 Project Risk Discuss potential problems and how you would address them. One risk is in getting accurate data from the village power plants. Operators currently on staff have not been trained to gather data and report their findings. North Slope Borough will actively recruit power plant operators for training in energy data gathering and reporting. Another risk is in the performance of the technology in arctic environments. North Slope Borough will coordinate with AEP and other providers to make sure that we understand the performance capacity of current technology. This understanding will enable us to make wise choices about the technology we purchase in the future. 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 resource vs. other alternatives that may be AEA 11 /005 Grant Application Page 8 of 43 09/08/2010 /46E'EE__') ALASM Renewable Energy Fund ® ENERGY AUTHORITY Grant Application Round IV available for the market to be served by your project. A wind monitoring study was conducted in Point Lay from October 5, 2006 to September 11, 2007 (the date of the most recent report provided to the project team) using a 30 meter met tower provided by NREL. A WindPRO software report prepared by NREL on July 21, 2008 indicates a mean wind speed at the 30 meter anemometer of 6.6 m/s. Although wind power density was not indicated in the NREL report, an average wind speed of 6.6 m/s typically equates to a Class 4 wind resource. Actual wind resource may be higher — perhaps low Class 5 — however as Point Lay will have much higher than standard air density due to its arctic location. Other relevant parameters for the site area Weibull k of 1.72 and a mean turbulence intensity of 0.075. The 50 year extreme wind probability was not addressed in the NREL report but it's unlikely to be IEC Class I given the moderate wind speed average. Point Lay most probably will be IEC Class III-C or II-C (extreme wind and turbulence behavior). The village of Point Lay is blessed with abundant winds but finds its fuel supply limited and costly. Solar power from photovoltaic solar arrays is a potential alternative, but suffers from higher capital cost and lower resource availability than wind at this site. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The existing power plant at Point Lay consists of six diesel -powered engine generator sets, all rated at 330 kW output. Individual efficiency is not available, but an aggregate efficiency of 14.2 kWh/gal was reported in NSB's September 2009 PCE report to AEA. 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 power plant produces electrical energy by burning diesel fuel in engine -driven generators. By adding wind turbines to the existing system, we expect the project to provide the same amount of electrical energy using substantially less diesel fuel than is true today. In addition to offsetting much of the diesel -generated electricity, we also expect to use whatever wind -generated energy that exceeds electrical demand to heat water, also displacing diesel fuel that is presently burned in boilers. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Point Lay sits on the west coast of Alaska on the Arctic Ocean, 125 miles southwest of Barrow. It is subject to severe cold winter temperatures, extended periods of darkness and blowing snow. Reliable electric service is essential to maintaining home heating systems necessary to safeguard the health of the population. Point Lay is classified as an isolated village, relying on air transportation for delivery of medical goods and transport of sick or injured individuals or mothers nearing childbirth. Reliable electric service is AEA 11 /005 Grant Application Page 9 of 43 09/08/2010 ALASKA Renewable Energy Fund /4WD ENERGY AUTHORITY Grant Application Round IV essential to maintaining vital navigation aides for the safe operation of aircraft. Runway lights, automated weather observation stations, VASI lights, DME's and VOR's are all powered by electricity. Emergency medical service is provided in Point Lay by a health aide. Therefore medical problems and emergencies must be relayed by telephone or by some other communication means for outside assistance. Operation of the telephone system requires electricity. Reliable telephone service requires reliable electric service. The heaviest consumers of power in villages of the North Slope Borough are the water and sewer facilities. Additionally the underground utilities are thawed by electrical heat trace. If one of these heat traces is left without power, systems will freeze up and shut down. Water in Point Lay comes from a fresh water lake which must be processed for use as potable water. Reliable electric service is required for the continuous operation of the water and wastewater systems and to prevent freezing of the systems which will cause extensive damage and interruptions in service. Point Lay is subject to long periods of darkness. Reliable electric service is essential for the operation of home lighting, streetlights and security lighting. Outside lighting reduces safety hazards, such as deep snow and the infrequent visit of polar bears, for pedestrian school children. Residents of Point Lay rely on a subsistence lifestyle where food is gathered and harvested and then stored for later use. Refrigeration is essential for the extended storage of perishable food stuffs. We expect the addition of wind turbines to the electric generation system to reduce the amount of diesel fuel used in Point Lay for power generation and for heating. 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 description Wind power is the renewable energy option of choice for Point Lay. There are no other alternative or renewable energy options that are currently, commercially viable. Northern Power's Northwind100, 100 kW B model turbine with a 21 meter rotor (NW100/21) is proposed. The NW 100/21 (B model) represents a new generation of wind turbines. Its permanent -magnet, direct - drive architecture is the current state of the art for advanced wind turbine design. That architecture overcomes many of the challenges of connecting old-style induction generators to electrical distribution grids. The permanent -magnet generator is connected to a full power converter that AEA 11/005 Grant Application Page 10 of 43 09/08/2010 A L A S K A Renewable Energy Fund /409D ENERGY AUTHORITY Grant Application Round IV converts its variable, low -frequency, alternating -current output to direct current, then back to tightly regulated alternating current for output to the grid. The permanent -magnet generator requires no reactive power to energize its magnetic field, removing that influence from the grid. The power converter allows a broad degree of control over the form and quality of the power output to the grid. The capacitance and active controls in the power converter allow reactive power to be either consumed or produced by the NW 100 regardless of its real power output, even in the complete absence of wind. The turbine controls allow power output to be controlled by dynamic grid conditions, including automatic output reduction or complete shutdown, regardless of wind conditions. The combination of advanced controls and integrated disk braking allows gradual ramping of turbine output up or down, minimizing flicker and maximizing usable power. Optimum installed capacity The system we plan consists of three (3) NW100/21 turbines to operate with the existing diesel plant as a wind -diesel hybrid power system. Installed wind power capacity will be 300 kW. Anticipated capacity factor HOMER software was used to simulate conditions at Point Lay with three Northwind 100 wind turbines running in conjunction with the existing power plant. HOMER calculates gross energy production with no allowance for power plant downtime, turbine or generator maintenance, equipment curtailment or any other reason. Northern Power notes that roughly 90% of annual energy production estimates from Homer modeling are observed in Alaskan villages. This reduction in AEP accounts for lost wind production due to all reasons. In this analysis, we will use 90% to calculate net wind turbine production from HOMER's gross production estimate. - Renewable fraction from HOMER: 20.1 % - Capacity factor on net wind production: 27.5% Anticipated annual generation HOMER software estimated gross annual wind production to be 800 MWh with 1 MWh excess electrical energy. Anticipated net annual wind production is 720 MWh. Anticipated barriers No barriers to successful installation and integration of a wind turbine in Point Lay are expected. The project design is modeled on recent successful projects of similar design. Basic integration concept The integration design concept is comprised of three NW100 turbines, a secondary load boiler to augment an existing diesel generator heat recovery loop (if deemed necessary after further analysis), a secondary load controller to manage the "dumping" of excess electricity (if necessary), a SCADA system to manage the combine operation of the diesel generators and wind turbine, and the SmartView system to enable remote monitoring and control of the wind -diesel hybrid power plant. Alternatively, and this would require more analysis, if there will not be significant excess electricity generated and it appears from preliminary analysis that there may not be, a secondary load controller and boiler could be replaced by a dispatch control feature that would serve to curtail one or more of the wind turbines during the rare occurrences where wind power output equals or exceeds the load demand. Delivery methods The wind -generated electrical energy will be delivered using the existing electrical distribution grid. AEA 11/005 Grant Application Page 11 of 43 09/08/2010 �® ALASKA Renewable Energy Fund Grant Application Round IV 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. North Slope Borough and the Village Corporation have substantial land holdings in the villages ana will make the necessary agreements to provide the optimal site for each turbine. 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 Application for permits will be made no sooner than one year prior to construction to be valid for the construction period. The following permits and/or authorizations will be necessary for installation of the wind turbines: • North Slope Borough permitting • USACE Section 404/401 Wetlands permit and Water Quality Assurance ADNR, OC&OM Coastal Zone Consistency Determination Title 16 Fish Habitat Permit • SHPO "No Historic Properties Affected" • Storm Water Pollution Prevention Plan • Alaska Pollutant Discharge Elimination System • Vegetation Clearing Not Permitted between May 20 and July 20, except for black scoter habitat where the end of the avoidance period is August 10 FAA 7460-1 Notice of Proposed Construction or Alteration Environmental & Permitting Review and Due Diligence Deliverable. The deliverable of this step is a 5 page report detailing findings of the agency meeting and discussions. AEA 11/005 Grant Application Page 12 of 43 09/08/2010 ®ENERGYALASHORITY A K Renewable Energy Fund Grant Application Round IV 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 Point Lay is situated on the coast, just south of the mouth of the Kokolik River. It is relatively flat and sheltered from the open Chukchi Sea by barrier islands. The community is on a low coastal bluff approximately 20 feet above the Kasegaluk Lagoon. Wetlands may be inferred due to the consistent permafrost and vegetation types. EO 11990 requires that a Protection of Wetlands Determination be developed for projects in wetlands Threatened & Endangered Species The polar bear was recently listed as endangered. There are polar bears in the area infrequently and mostly in the winter when weather has been harsh. No critical habitat areas will be affected. The community of Point Lay is inside the USF&WS Spectacled Eider Designated Critical Habitat (molting Area). The Spectacled Eider Offshore Range begins just north of Point Lay. Siting of the wind turbines will be done to minimize any FAA concerns. North Slope Borough will instruct the contracted A & E firm to coordinate with the ADNR and the Borough Program Manager for the Wind Diesel Project to identify and discuss appropriate permit issues and provide agency perspective on the proposed development. Discussions should include actions to avoid, minimize and mitigate wetlands impacts. Preliminary concerns for impacts to the National Preserve and possible cultural sites will be identified. This will be as comprehensive as possible but may not identify all permits required for project development. 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 AEA 11/005 Grant Application Page 13 of 43 09/08/2010 /4401F) ALASM Renewable Energy Fund 40V:) ENERGY AUTHORITY Grant Application Round IV • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system This application is for the design and permitting phase. We are requesting $400,000 to complete the design and permitting phase. The North Slope Borough will provide $40,000 as a 10% cash match for this phase of the project. The North Slope Borough also financed the wind study for Point Lay out of its own operating budget — an estimated outlay of $42,500. We estimate that the completed (constructed) project will cost a total of $4,433,000. We hope to propose for construction funds in the event there is another AEA funding round in 2011. 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 new Northwind 100B model requires only one maintenance visit each year. The three turbines for Point Lay will require a combined annual maintenance cost of $10,500. This cost will be funded by a NSB operations budget. 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 North Slope Borough is the owner/operator of the utility in this community, therefore, the Power Purchase/Sale is not required. 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. See attached cost/benefit worksheet Attachment B AEA 11/005 Grant Application Page 14 of 43 09/08/2010 /ALASKA Renewable Energy Fund � ENERGY AUTHORITY Grant Application Round IV 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 Rroject HOMER projected annual fuel savings: 20-year lifetime fuel savings (gallons): 860,000 gallons @$4.36/gallon, escalating at 4%/year gives total savings of $5.5MM. - 20-year lifetime energy savings (kWh): 14,400 MWh @ $0.32/kWh fuel cost, escalating at 4%/year gives total savings of $6.7MM. Non -economic benefits - - CO2 reduction (@ 22.2 #/gallon CO2): 480 T/yr or 9,600 tons in a 20-year life Additional benefits include local jobs associated with local generation of power. The program will work in conjunction with Northern Power to train local power plant operators with the operations and maintenance of the wind diesel system. This training will have a multiplier effect, by increasing the knowledge base and furthering the competencies of the local workforce. We will explore other tax credits as a benefit to the project. Also, any future value laid to carbon offsets will contribute to additional savings as a result to the project. Finally, the controls system associated with wind diesel systems can help facilitate a change -over from a manual, traditional system to that of smart grid and general, village -wide control integration. 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 Once constructed, the proposed wind diesel system will be fully integrated into the North Slope Borough -owned and operated utility system. Therefore, the proposed business structure will become part of the annual operations and maintenance budget, and any significant capital upgrades will be part of the annual CIP process. AEA 11/005 Grant Application Page 15 of 43 09/08/2010 /4w1F))ALASM Renewable Energy Fund Grant Application Round IV The North Slope Borough has the existing infrastructure that will serve this project and is inherently sustainable. This design and permitting phase will become part of the annual NSB operations budget. Operational issues that could arise are in integrating between wind and diesel systems and the cost of training the current plant operator on the wind/diesel system. Providing operations and maintenance in an arctic environment can be costly, but will come under the infrastructure of the North Slope Borough. The new Northwind 100B model requires only one maintenance visit each year. The three turbines for Point Lay will require a combined annual maintenance cost of $10,500. This cost will be funded by ongoing energy sales in the village. Power Plant operators will be trained to collect data and will be required to report all cost savings and benefits. 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 North Slope Borough recently (9/16/10) received Round III funding that will be implemented in Fall 2010. When the Round IV award is made, the current phase will be completed. The NSB funded wind study has been completed and reports are appended here. The NSB has an on -going area -wide, non grant funded, initiative for energy management with Johnson Controls. Over the last 30 years, Johnson Controls' Building Efficiency business unit has implemented energy efficiency work that has resulted in over $4B of savings for their customers. They are also a leading provider of renewable energy solutions and have a national portfolio of installations including wind, solar, geothermal, biomass and landfill gas to energy. SECTION 8— LOCAL SUPPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. North Slope Borough is the provider of local energy in the Borough. They own all local utilities, so a resolution from the Borough Assembly is included here as Attachment G. Other letters of support may be found in Attachment D. 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. AEA 11/005 Grant Application Page 16 of 43 09/08/2010 /460KELD'ALASM Renewable Energy Fund Grant Application Round IV Include an estimate of budget costs by milestones using the form — GrantBudget3.doc Provide a narrative summary regarding funding sources and your financial commitment to the project. The design and permitting phase will require funds from both the Alaska Energy Authority and the North Slope Borough. We are asking AEA for $400,000 and the NSB will match that with 10% in cash ($40,000). These funds will be used to hire a contractor to design the turbine sites. Permitting, environmental work, labor, systems designs, and the final business and operational plan will be paid for by this award. 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 (Please see Attachment H, below) AEA 11/005 Grant Application Page 17 of 43 09/08/2010 /Z='V-ALAS KA Renewable Energy Fund ENERGY AUTHMTY Grant Application Round IV Attachment A RESUMES AEA 11/005 Grant Application Page 18 of 43 09/08/2010 ® �� ,� / / © / / /46MwU' ALASM Renewable Energy Fund Grant Application Round IV Attachment B COST WORKSHEET AEA 11/005 Grant Application Page 29 of 43 09/08/2010 ' ORITY I ALASAUTENERGYHKA Renewable Energy Fund Grant Application Round IV 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. 75% (wind speed > 3.5 m/s) (estimate —no report) Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation and Usage a) b) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other 6 generators ii. Rated capacity of generators/boilers/other 1,980kW (6 x 330kW) iii. Generator/boilers/other type diesel iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other 13.49 kWh/gal Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non -labor c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] 3,980,000 kWh ii. Fuel usage Diesel [gal] 295,000 gal Other iii. Peak Load 690 kW iv. Average Load 310 kW v. Minimum Load 155 kW vi. Efficiency 13.49 kWh/gal vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 71,557 gal 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 Chugar.h Electric Association, Homer Electric Association; Golden Valley Electric Association. the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. AEA 11/005 Grant Application Page 30 of 43 09/08/2010 146WE'DALASKA Renewable Energy Fund Grant Application Round IV 3. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity Wind-300kW installed capacity (Wind, Hydro, Biomass, other) (four Northwind 100 wind turbines) [kW or MMBtu/hr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 1,072,464 kWh (HOMER software; 100% availability) 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 a) Total capital cost of new system b) Development cost c) Annual O&M cost of new system $9,000 (for three wind turbines) d) Annual fuel cost No fuel required for wind power 5. Project Benefits a) Amount of fuel displaced for i. Electricity 43,000 gal (160,000 liter) (HOMER software; 100% availability) ii. Heat 0 gal (0 liter) iii. Transportation b) c) d) Current price of displaced fuel Generator fuel: $4.36/gal; heating fuel: $5.36/gal Other economic benefits Alaska public benefits 6. Power Purchase/Sales Price a) Price for power purchase/sale 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback (years) Renewable Energy Credits @ $0.02/kWh AEA 11/005 Grant Application Page 31 of 43 09/08/2010 rZiZE)ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application Round IV Attachment C GRANT BUDGET FORM AEA 11/005 Grant Application Page 32 of 43 09/08/2010 0 m m y = LL C LL s m0 o m `- � u� a� m40 c �tL C C C LL LL Lb C w 11) C O i'+1 0-2 10 � U � v Q U 0 VJ J Fa- 0 Y w w F 0 o � -15 C U- m Q h uU 2 U L] d -o > c— LL C T :3 rn0 W o m � •U N p. � QCL � N oGi O O O O O O o O O O O O O O O 69 o 0 O O O O O 69 O 69 O 69 o 0 O 69 O 69 O O O O O O O O O O O O O O J O O N O CO O 'cr O CD O — O N O N O O O It O O Cj Q E9 EA — 69 —609, EF3 6969 C 69 69 It . 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O ' � C a) f� E C a) w V5 y C O '2- 0 w � y C O aE) V O p N N O 2ca wO f6 C fn C C (i .L w m c CD 2 E O C a, 2-C T O m a) d Z N E c .2 ca a) a) (n m a) fn J rn a) E y c O m a) C U 7 a) +O. u V C E E C C cc Ci J•, E .cc fULO y C C ,N a) C a) Vl U C C y > ` a O LL O 2 cn 7 H O af O U > cn w 47 w p 0 m o c`D Q W (4 O U O U . 0 .N co N LL N U C ca fn N C C O U a) fn N .0 Q r.. U O O a L U c6 N L O N (D L fn I 3 a) N fn QD O N � C C O 7 O Q N co C C ,O O += U-0 N Q � 2104 O r O N a0 O O co O Ln M a) rn c6 d /W ALASM Attachment D Letters of Support [No Letters Provided] Renewable Energy Fund Grant Application Round IV AEA 11-005 Application Page 36 of 43 09/08/2010 ALASKA Renewable Energy Fund Grant Application Round IV Attachment E Electronic- Version of the Proposal A copy of the proposal is contained on the enclosed CD AEA11-005 Grant Application Page 37 of 43 7/21/2010 © ALASRenewable Energy Fund lKA dlff:) ENERGY AUTHORITY Grant Application Round IV Attachment F Authorized Signers Form AEA11-005 Grant Application Page 38 of 43 7/21/2010 /�`-D_IALASKA Renewable Energy Fund 40E-,' ENERGY AUTHORITY Grant Application Round IV Grant Documents Authorized Signers Please clearly print or type all sections of this form. Community/Grantee Name: North Slope Borough Regular Election is held: Annually Authorized Grant Signer s : Date: 1 s` Tuesday in October Printed Name Title Term Signature Harold Curran Chief Administrative Officer None authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Edward S. Itta Mayor, North Slope 2008-2011 �_C Borough Grantee Contact Contact Information: Mailing Address: Phone Number: Fax Number: E-mail Address: Federal Tax ID #: V LV P.O. Box 69 Barrow, Alaska 99723 (907) 852-0467 (907) 852-4145 Jack.smithjr@north-slope.org N/A Please submit an updated form whenever there is a change to the above information. Please return the original completed form to: Alaska Energy Authority 813 W. Northern Lights Blvd. Anchorage, AK 99503 Attn: Butch White, Grants Administrator A AS 44wL --=)) L KA � ENERGY AUTHORITY AEA11-005 Grant Application Page 39 of 43 7/21/2010 /4=0D::) ALASKA Renewable Energy Fund GMED ENEROYAUrHORITY Grant Application Round IV Attachment G Governing Body Resolution AEA11-005 Grant Application Page 40 of 43 7/21/2010 �® ALASM Renewable Energy Fund Grant Application Round IV NORTH SLOPE BOROUGH RESOLUTION SERIAL NO.22-2010 A RESOLUTION AUTHORIZING THE NORTH SLOPE BOROUGH TO PARTICIPATE IN THE RENEWABLE ENERGY GRANT PROGRAM FOR FY 2011 WHEREAS, the State of Alaska, pursuant to Chapter 31 Session Laws of Alaska 2008, has established the Renewable Energy Grant Recommendation Program in Alaska Statute AS 42.45.045; and WHEREAS, the Alaska Energy Authority is soliciting competitive applications from qualified applicants for the purpose of recommending grants for renewable energy projects to be funded by the Alaska State Legislature for FYI 1; and WHEREAS, the North Slope Borough is a home rule municipal corporation duly organized and existing under the Constitution and laws of the State of Alaska, and is therefore a local government and "eligible applicant" as defined by AS 42.45.045(l)(1); and WHEREAS, the North Slope Borough is in compliance with all federal, state, and local laws including existing credit and federal tax obligations; and WHEREAS, Mayor Edward S. Itta or his designee is authorized as the point of contact to represent the North Slope Borough for the purposes of this application; and WHEREAS, the North Slope Borough wishes to apply for funds to provide for and administer the following projects under this program: PROJECT TITLE PHASE IV GRANT AMOUNT At asuk Transmission Line Design $210 000 Kaktovik Wind Turbine Feasibility Stud $132,000 Point Hope Wind Turbine Design $400,000 Point Lay Wind Turbine Desi $400,000 Wainwri ht Wind Turbine Desi $400,000 TOTAL PHASE IV REQUESTS $1,542,000 WHEREAS, pursuant to AS 42.45.045(d)(1), the Alaska Energy Authority has been directed to evaluate the benefit and feasibility of projects, and prioritize projects that may receive assistance, with "significant weight" being given to the amount of matching funds an applicant is able to provide, and therefore the North Slope Borough proposes to provide funding at the match amounts indicated in the application. AEA11-005 Grant Application Page 41 of 43 7/21/2010 /GwOVD)ALASM Renewable Energy Fund INED ENERGY AUTHORITY Grant Application Round IV Resolution No. 22 2010 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED THAT: That the Mayor of the North Slope Borough is hereby authorized to submit an application for the grant projects listed above, to negotiate and execute any and all documents required for granting and managing grant funds, and to execute any subsequent amendments to said grant agreement to provide for adjustments to the project within the scope of services or tasks and based upon the needs of the project. INTRODUCED: ADOPTED: Septnmhar-7, 7010 Se. .ember 7, MO 1 C. Eugene Br, wer, Pyesident Date: fZ 7Z le ATTEST: A,-U Sheila H. Burke CMC, Borough Clerk Date: C1. � . 201U Edward S. ftte�YSB �. E. AEA11-005 Grant Application Page 42 of 43 7/21/2010 ALASM MUD Renewable Energy Fund Grant Application Round IV Attachment H Certification 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 Edward S. Itta Signature Title Mayor, North Slope Borough Date IT// o 410 4=,A7;x5: /N 81� *,— AEA11-005 Grant Application Page 43 of43 7/21/2010 OFFICE OF THE MAYOR P.O. Box 69 Barrow, Alaska 99723 Phone: 907 852-2611 or 0200 Fax: 907 852-0337 or 2595 email: edward.itta@north-slope.org TO: NSB Department Directors FROM: Edward S. Itta fV1 a yor ®ATE: September 9, 2010 SUB]: ACTING MAYOR I am delegating George Olemaun, as Acting Mayor effective September 9, 2010 until September 18, 2010 at 5:00 p.m. or until my return. Please comply with all directives issued by him. Your cooperation is greatly appreciated. Quyanaqpak! ! NORTH SLOPE BOROUGH RESOLUTION SERIAL NO. 18-2007 A RESOLUTION AUTHORIZING THE MAYOR TO DESIGNATE CERTAIN INDIVIDUALS TO ACT AS MAYOR DURING HIS TEMPORARY ABSENCE OR DISABILITY WHEREAS, North Slope Borough Charter Section 5.010(c) authorizes the Mayor to designate an acting mayor to serve during his temporary absence or disability; and Assembly, and WHEREAS, the designation of an acting mayor must be approved by the WHEREAS, the Assembly's approval should be made in advance so that the Mayor can designate an acting mayor upon short notice; NOW, THEREFORE, BE IT RESOLVED THAT: 1. In the event of the Mayor's temporary absence or disability he may designate George Olem.aun, special assistant to the Mayor, Harold Curran, Chief Administrative Officer, Randy Hoffbeck, Director of Administration and Finance, or Bessie O'Rourke, Borough Attorney to serve as acting mayor. 2. 2-4 TRODUCED: ADOPTED: ATTEST: The Mayor has this authority until it is revoked by resolution. August 7,2007 August 7,20.07 She'la H. Burke, Borough Clerk Date c Charles F. Hopson, Assembly President R-7` ^"7 Date Edw d S�IN�SB Mayor Gd� Date