HomeMy WebLinkAboutAVCP Wind Turbine AEA Grant AppRnd4
Renewable Energy Fund Round IV
Grant Application
AEA 11-005 Application Page 1 of 15 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 15 7/21/2010
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
AVCP Regional Housing Authority
Type of Entity:
Tribally Designated Housing Entity
Mailing Address
PO Box 767
Bethel, AK 99559
Physical Address
405 Ptarmigan Street, Bethel, AK 99559-0767
Telephone
907-543-3121
Fax
907-543-2270
Email
Principal: ron@avcphousing.org
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Mr. Allen Joseph
Title
Grants Coordinator
Mailing Address
PO Box 767
Bethel, AK 99559
Telephone
907-543-0079
Fax
907-543-2270
Email
ajoseph@avcphousing.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)
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
X 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.)
Yes
or
No
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 3 of 15 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.
AVCP Housing Wind Turbine Project
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project.
Answer here.
AVCP Regional Housing Authority (AVCP RHA) Campus at 405 Ptarmigan Street, Bethel,
AK. To benefit the Low Income Rental units, Lulu Herron Congregate Housing, and 48 village
member tribes in the Yukon-Kuskokwim Delta through the AVCP RHA Office Complex and
warehouse.
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 X Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The purpose of the AVCP Housing Wind Turbine Project is to construct two turbine towers for
wind generated energy, with the purchase of land from the City of Bethel for the site, a power
generation/controls building, and complete Operations and Maintenance training of permanent
employees. The calculated annual projected kWh usage of the Low Income Rental units, Lulu
Herron Congregate housing and the AVCP RHA Office Complex and warehouses is 581,573
kWh.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 4 of 15 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 annual kWh usage for the AVCP Office Complex and Campus is calculated to be 581,573.
The annual electric utility cost is conservatively estimated at $310,500.00. With the use of this
project, the cost will be reduced to the maintenance of the wind turbine system and the generator
(projected to be $ 65,000 per year.) Wind energy is renewable and cleaner for the environment.
AVCP Regional Housing Authority would be the first regional headquarter in Bethel to utilize
wind energy and that would be a cost and environmental benefit for its service area, the Yukon
Kuskokwim Delta.
This project is forecasted to be integrated into the local utility electrical grid upgrades. The
future utility provider is upgrading the local power plant to accept wind generated electricity.
The authority is seeking a partnership agreement with the future local utility provider so both
parties may financially benefit from this project.
The timing of this project with the forecasted ownership transfer of the local utility provider,
coupled with the City of Bethel’s 2009 grant approval of wind turbines, provides an opportunity
for a partnership between AVCPRHA, the City, and the local utility provider to develop a joint
wind farm, within a Class 6 wind zone, that could maximize project efficiency and could serve
all major facility operators in the city (AVCPRHA, City, Lower Kuskokwim School District,
YKHC, and state/federal agencies).
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 budget of the AVCPRHA Wind Turbines Project is $3,795,000. This grant request is
for $3,045,000. It is for land acquisition, civil drawings and pile testing, turbine acquisition and
assembly, site development, and operations & maintenance training. AVCPRHA will finance
$750,000 for the power generator and controls building construction.
Funds primarily to come from renewable energy grants. Bank loans (as needed) for cost share
will be obtained as needed.
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. $ 3,045,000.00
2.7.2 Other Funds to be provided (Project match) $ 750,000.00
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 3,795,000.00
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 5 of 15 7/21/2010
operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet
including estimates through construction)
$ 3,795,000.00
2.7.5 Estimated Direct Financial Benefit (Savings) $ 181,000.00
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.)
$ 66.000.00
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 6 of 15 7/21/2010
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.
Type in your answer here and follow same format for rest of the application.
Joe Killeen, Vice President of Development, AVCP RHA
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.)
Begin partnership/agreement negotiations with local utility provider 9-11/2011. Acquire site
control 9-11/2011. Permitting and ER 9/2011-1/2012. Procure contractor for design, pile test,
construction and training 12/2011-1/2012. Complete design and pile testing 2/2012. Construct
wind towers and controls building 3-9/2012. Monitoring software 5/2012. Operations &
Maintenance training 5-10/2012. Connection to utility grid 10-12/2012. Project close-out
12/2012.
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.)
Milestone 1: Acquisition of site control. 9-11/2011
Milestone 2: Site permitting and ER complete. 9/2011-1/2012
Milestone 3: Procured contractor for design, site development, tower construction, & training (to
include operation & maintenance manual). 12/2011-1/2012
Milestone 4: Civil drawings, pile testing and foundation design complete. 2/2012
Milestone 5: Acquired tower and shipment. 3-5/2012
Milestone 6: Controls building construction begins. 3/2012
Milestone 7: Acquired monitoring software. 5/2012
Milestone 8: Operations & Maintenance training starts. 5/2012
Milestone 9: Tower site development complete. 6/2012
Milestone 10: Wind towers arrive and assembly begins. 6/2012
Milestone 11: Controls building construction complete. 8/2012
Milestone 12: Tower installation complete. 9/2012
Milestone 13: Controls installation complete 10/2012
Milestone 14: Operations & Maintenance training complete. 10/2012
Milestone 15: Commissioning and certification of onsite power system. 11/2012
Milestone 16: Connection to local power grid. 12/2012
Milestone 17: Utilization of the wind turbine system. 12/2012
Milestone 18: Project Closeout. 12/20112
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 7 of 15 7/21/2010
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.
Mr. Joe Killeen, VP of Development, of AVCP RHA, will have oversight responsibilities for the
AVCP Housing Wind Energy Feasibility Study and Design Project. He will oversee the project
for permitting, procuring contractors for the construction of the anemometer tower, procuring
contractors for the collection of wind data and the design and evaluation of wind turbines,
supervision of the contractors, and the decommission of the tower.
Mr. Killeen has many successful years of working with architecture and development of
construction projects in Alaska and California. Mr. Killeen oversees all development projects
within AVCP RHA. His development team at AVCP RHA consists of project planners, project
managers, and an architect. He also manages and supervises any outside construction firms,
architects, grant writers, and consultants contracted by AVCP RHA.
The Tanadgusix (TDX) Corporation is in the process of buying the Bethel Utilities Corporation
Bethel power plant. TDX supports the wind energy project of the City of Bethel, as stated in the
7/21/2011 DELTA DISCOVERY newspaper. The Bethel Utilities Corporation had not been
equipped to interface wind generated energy with the power grid.
AVCPRHA is prepared to work with the City and TDX to consider a partnership to develop a
joint wind farm, within a Class 6 wind zone in Bethel, that could maximize project efficiency
and could serve all major facility operators in the city (AVCPRHA, City, Lower Kuskokwim
School District, YKHC, and state/federal agencies).
AVCP RHA selected the Northwind Wind Turbine from STG of Montana State from a
competitive review of wind turbines utilized in Northern environments. Selection criteria
encompassed reliability, maintainability, and operation/maintenance costs. This unit is featured
in this application for budget and cost benefit purposes. However, if a joint venture with TDX is
obtained, AVCP RHA would work with other partners and AEA to invest grant funds into the
most efficient wind turbine that benefits the community at large.
For the maintenance and operation training on the wind turbine power system, AVCP RHA will
have our current and apprentice power systems maintenance crew train at facilities recommended
by STG or other entities, like AVEC, Inc., that have experience with wind turbine system
maintenance.
The cost estimates were determined by Mr. Killeen, VP of Development AVCP RHA, along
with Mr. Clinton White of STG Inc.’s Business Development section, and Ms. Xuan Ta, P.E.,
Associate Principal Engineer of RSA Engineering of Anchorage, Alaska. Mr. White and Ms. Ta
have many years of knowledge and experience with issues of the installation and
operation/maintenance of wind towers and turbines, especially in arctic environments.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 8 of 15 7/21/2010
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Monthly progress will be compared to the milestone projections. Expended costs will be
compared to the amounts budgeted. The work completed will be compared to the work to be
done and the estimated future costs will be compared to the amounts left on the project budget.
There will be the reports to the AEA, either monthly or quarterly, as stipulated by the AEA in the
fund authorization package.
3.6 Project Risk
Discuss potential problems and how you would address them.
The most significant potential problem will be schedule impact if barge schedules are not met.
The project management team will closely monitor procurement and production activities to
ensure barge schedules are met. While air transport is available, this will be a solution of last
resort, because of cost, to maintain the project schedule.
Another factor is the potential for cost overruns. This will be partially mitigated through the use
of in-house labor and firm fixed price contracts. However, where competitive bids or proposals
exceed the cost estimate, AVCP RHA will attempt to reduce costs through value engineering or
reallocation of contract risk. When it is determined additional funds are required, AVCP RHA
will seek funds through commercial loans or funding streams other than the Alaska Energy
Authority. This risk could be significantly reduced if the quest for a joint venture with the City
and TDX is realized in 2011/2012.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 9 of 15 7/21/2010
SECTION 4 – PROJECT DESCRIPTION AND TASKS
Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project.
AVCP RHA contracted for a “Wind Energy Study” dated 4/14/2009. Wind energy is feasible in
Bethel according to the A.E. Authority Wind Resource Assessment for Bethel, Alaska in 2/2006.
Of the seven level wind classification system, the Bethel area is class 4. One Northwind 100/21
is expected to produce 291,243 kWh annually based upon this wind classification. There are
higher classifications in pockets surrounding the city which may be obtainable if a joint venture
with the future utility operator and the City can be formulated and result in a shared wind farm.
Wind energy is the most efficient and cost effective energy source in the region but would not
replace reliance upon oil fueled power generators in total. However, anticipated upgrades to the
existing utility plant (to accept wind generated power) coupled with the future utility provider’s
experience with wind power in the Aleutians, should maximize the cost benefit of wind
generation in the region. This experience would overcome the learning curve of introducing wind
powered turbines to this region and benefit the community at large through reduced utility rates
and shared operations and maintenance costs.
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.
For the Bethel, Alaska population of up to 6,000, the Bethel Utilities Corporation uses 6 diesel
generators. The rating/size for each is 2220 kW and the ages are from 18 to 34 years.
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 only existing power generation source for the Bethel community is derived from a diesel
powered generation plant of the Bethel Utilities Corporation. The utility is being purchased by
the TDX Corporation. The future owner has experience with wind energy and is supportive of
AVCP RHA’s and the City of Bethel’s wind energy generation projects. As discussed in 4.1, this
project would have a positive impact upon the community at large through a desired joint venture
with the utility provider and City of Bethel.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 10 of 15 7/21/2010
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The AVCP RHA office complex and campus has an estimated annual energy consumption of
581,000 kWh. The tenants of the Lulu Herron Congregate Housing and the Bethel Low Rent
Apartments do not benefit from the State of Alaska PCE adjustment since the electric accounts
are under the name of AVCP RHA. The sale of wind generated energy could potentially reduce
the electric costs of 48 tenants by 50% based solely upon the wind towers, or more through a joint
venture with the utility provider.
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
The power generation system being considered for funding is the Northwind 100/21 variable
speed stall-controlled turbine. This 100 kW, 3-phase, 480VAC rated power turbine would tower
approximately 125-feet above ground plus a 35-foot rotor extension.
Two of these units provide the optimum electrical generation capacity of 582,486 kWh annually.
There are no anticipated barriers to implementing this system. The system would rely primarily
upon wind generated power with the local electrical grid providing supplementary energy as
needed.
Integration of these units into the local electrical grid would be through a joint venture partnership
or agreement with the utility provider.
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 wind turbine towers will be within a 305,577 sq. ft. area currently owned by the City of
Bethel. The northern edge is along the boundary line of land owned by AVCP RHA. The cost
estimate is based on an appraisal done in 1/2008. Negotiations will be done with the City of
Bethel when the project is funded.
However, through a joint venture with the local utility provider and the City, AVCP RHA would
support working with its partners to site the turbine towers in the region that provides the highest
wind class for developing a wind farm.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 11 of 15 7/21/2010
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
Permits, for the wind turbine towers project, are needed from the following: Alaska Coastal
Management Plan of Bethel, FAA, Corp of Engineers, and the City of Bethel. The anticipated
permitting timeline is 90 days. A potential barrier could be height limitations with FAA due to
the towers site being less than 10 miles from the Bethel airport.
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
No environmental or land issues are anticipated with this project. However, an Environmental
Review will be conducted at the onset of the project and should be completed within 2 to 4
months. A concurrence or permit will be obtained from the FAA.
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
Cost information is based upon applicant’s records and cost data provided by land appraisers and
wind turbine suppliers. The feasibility study was completed and paid by AVCP RHA in 2009.
Costs are segregated by phase of project as outlined in paragraph 3.2 Project Schedule.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 12 of 15 7/21/2010
Phase III total cost is $785,000. Phase III grant request is $785,000.
Acquire site control: $670,000 to acquire land (Cost based upon appraisal). 9-11/2011
Permitting and ER: $35,000 (Cost based upon applicant’s estimate for ER). 9/2011-1/2012
Complete design and pile testing: $80,000 (Cost based upon supplier 2010 estimate.). 12/2011-
2/2012
Phase IV total cost is $3,010,000. Phase IV grant request is $2,260,000 for the following:
Purchase, construct, and install two wind towers: $2,200,000 (Cost based upon supplier 2010
estimate). 3-9/2012
Provide Commissioning & Training: $60,000 (Cost based upon supplier 2010 estimate). 5-
10/2012
AVCP RHA will finance for the construction of controls building: $750,000 (Cost based upon
applicant’s estimate). 3-9/2012
The projected capital cost of this project is $2,120,000 and the project development cost is
$1,675,000.
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 anticipated annual operations and maintenance costs are based on $0.11 per kWh. For the
annual use of 581,573 kWh, the cost would be approximately $65,000. The current electric utility
cost per year is approximately $310,445. The O&M costs would be funded by the applicant’s
annual operating budget for energy costs which are derived through a combination of tenant rent
payments and housing authority operating revenue.
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
The potential buyer of the energy generated by the wind turbines is the Tanadgusix Corporation.
TDX is in the process of buying the utility from the Bethel Utilities Corporation and has
experience with the integration of wind energy to utility power grids. There is no estimate of
what the price range or the rate of return will be at this time, but it can be at least the current rate
of the “cost of power adjustment surcharge” (fuel cost) at $0.0871kWh.
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.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 13 of 15 7/21/2010
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated
renewable energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
Within the AVCP RHA Campus, there are a total of 48 housing units consuming approximately
155,529 kWh of energy annually. The current energy cost for these units is approximately
$83,022. Subtracting wind turbine O&M costs the potential energy cost savings is approximately
$66,000. This cost savings would be realized by the housing authority’s tenants through reduced
monthly electric payments. This is the primary benefit of this project.
A secondary benefit would be the reduction of fuel consumption and associated carbon emissions
experienced by the local utility. If this project provides for at least 50% of AVCP RHA campus
energy needs, it will reduce the fuel consumption of the utility by at least 7,300 gallons per year.
The maximum benefit of reduced fuel consumption by the utility will be 14,600 gallons per year.
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 housing authority has extensive operations and maintenance staff to support its real properties
located throughout the city and region. This staff would be supplemented by trained wind turbine
operators. Funding for the staff and their continuing education would be through savings realized
by lower energy costs.
The housing authority provides capital replacement fund accounts for its assets. The wind
turbines would be added to accounts to program for future capital expenditures of high dollar
replacement components and other preventive maintenance or upgrades.
AVCP RHA would provide annual reporting of operating costs, capital investment, and realized
energy savings as required by AEA.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 14 of 15 7/21/2010
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed
with work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
AVCP RHA has prepared a feasibility study to identify the authority’s energy requirements and
potential savings, based upon prevailing and forecasted energy costs. The study also outlined
requirements for land acquisition, recurring maintenance, and forecasted capital costs in relation
to wind turbine operation. The authority is working with the City to acquire land for the
turbines. Space for the turbines and power building have been incorporated into the Authority’s
master plan and will complement the new 30,000 square foot office facility currently under
construction.
Also, the authority has begun informal discussions with the City and the future utility p rovider
about joint venturing on this wind project to potentially have a consolidated wind farm and
renewable energy operation. If these discussions result in a future partnership, the authority
would work with AEA and its partners to commit funds from this grant application to this
consolidated energy project.
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.
Attached are letters of support from some member Tribes. The Wind Turbine Project was among
the planned grant applications in 2009, support letters are attached. The 2009 grant applications
were not successful. Also attached is the newspaper report of the TDX Corporation’s purchase of
the Bethel electrical utility and its support of wind energy in Bethel.
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
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
AVCP RHA is requesting $3,045,000 in grant funds. The matching portion of $750,000 will be
financed by AVCP RHA. See paragraphs 2.2 and 4.4.1 for project costs, by category, and
requested grant funds and authority matching funds. Investment to date has been in the
feasibility study (AVCP RHA “Wind Energy Study” of 4/14/2009) and allocation of land for the
power distribution building. Additional investments will be in adding staff to provide operations
and maintenance to the wind turbines, once installed and brought on-line. Future investments
entail budgeting for annual recurring costs and long term capital maintenance and improvement
costs. The proposed area of the wind turbines was appraised in January 2008.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 15 of 15 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 Mr. Ron Hoffman
Signature
Title President/CEO
Date August 27, 2010