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HomeMy WebLinkAboutNative Village of Cantwell Jack River App Renewable Energy Fund Round IV Grant Application AEA 11-005 Application Page 1 of 14 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 14 7/21/2010 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Native Village of Cantwell Type of Entity: Government Entity (Tribal Council) Mailing Address P.O. Box 94; Cantwell, AK 99729 Physical Address 133.4 Denali Hwy, Cantwell, AK 99729 Telephone 907-768-2591 Fax 907-768-1111 Email hallvc@mtaonline.net 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Veronica Nicholas Title President, Native Village of Cantwell Mailing Address P.O. Box 94; Cantwell, AK 99729 Telephone 907-768-2591 Fax 907-768-1111 Email hallvc@mtaonline.net 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or 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 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 3 of 14 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. Jack River Hydro Project. 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project. This project is located approximately at mile post 131Denali Hwy (Jack River in Cantwell Alaska). Communities that will benefit from this project are communities that are part of the Alaska Intertie System that runs between Fairbanks and Anchorage. 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 X Feasibility Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The Native Village of Cantwell wishes to improve the reliability and lower the cost of the community of Cantwells power system. Currently they obtain power from the line between MEA and GVEA (Alaska Intertie System). To accomplish this they propose to build a hydroelectric project on the Jack River, a short distance from Cantwell. The installed capacity of this plant will be in exccess of 1 MW. It will be comprised of a dam and a short tunnel. A feasibility design and scoping are required to provide the parameters of the project. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 4 of 14 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.) A hydroelectric plant is proposed on Jack River. This plant will help contribute renewable energy into the Alaska Intertie System that runs between Fairbanks and Anchorage. The Jack River runs within one mile of the village. The Native Village of Cantwell, the Community of Cantwell, Carlo Creek and McKinle y Village needs the power for standby as they are served off of the MEA-GVEA intertie only. Damage to the line from an avalanche caused a two day outage in the dead of the winter; temperatures without wind chill can be –50 F in this area. High winds are constant in the Cantwell area so the wind chill is even colder. Such a transmission failure can be much longer and poses a grave hazard to the local people. Previous years ago Cantwell had a two hour outage from a lightning strike. If it had damaged an insulator it could have lasted for a day or more. Cantwell also wants to use this renewable local resource to reduce power costs for the Alaska Intertie System that runs between Fairbanks and Anchorage. The hydro plant will be located where the river passes through a very narrow deep canyon. A dam will be constructed across this 50 foot wide canyon whose sides are almost vertical. The dam will store water that will be diverted through a 1500 foot or so tunnel and will be returned to the river after passing through a Francis turbine(s). The capacity will vary depending on the economical height of the dam and the water flows that can be obtained and utilized. The power will be transmitted to the Alaska Intertie System. A preliminary design and scoping study will be required. As part of this endeavor, measurements will be made of stream flows. These will be correlated with flows from nearby streams. With this data and accurate surveys and geological work, a dam type and height will be selected. The water passage selection may be a small tunnel or micro tunnel excavated with a boring machine. The estimated tunnel length is within the capacity of such a machine. Part of the conveyance may be in a pipeline fastened to cliffs. It will be insulated from the extreme cold temperatures. 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 estimated cost to do a feasibility study for this project is $200, 000.00. This amount is based on Earle Ausman’s, PE / President and Chief Energy Engineer with Polarconsult Alaska Inc., many years of experience. Attached is a letter from Earle Ausman that explains his analysis. The Native Village of Cantwell will be contributing the $10,000.00 for this project. The Village Administrator will be the liaison between the village, Polarconsult Alaska and the Alaska Energy Authority for the duration of this project. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 5 of 14 7/21/2010 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. $190,000.00 2.7.2 Other Funds to be provided (Project match) $10,000.00 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $200,000.00 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) $200,000.00 2.7.5 Estimated Direct Financial Benefit (Savings) $ 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.) $ Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 6 of 14 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. The Native Village of Cantwell has been working with Polarconsult Alaska, Inc. for several years to get a feasibility study done for the Jack River Hydro project. Once funding has been secured to do a feasibility study for the Jack River Hydro project, the village will hire Polarconsult Alaska, Inc. to proceed with this study. Polarconsult Alaska, Inc. will be providing the information requested from the above question. 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 village has secured funding for the Jack River Hydro project the village expects Polarconsult Alaska, Inc. to take one year to do a feasibility study for this project. This study will determine if the Jack River Hydro project is viable and cost effective. 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 that the village needs to do is secure funding for a feasibility study for the Jack River Hydro project. Once this funding has been secured the next task is to find a vendor to do the feasibility study. The Native Village of Cantwell has been working with Earle Ausman, President and Chief Energy Engineer with Polarconsult Alaska, Inc., for several years to get a study done for this hydro project and they will be the vendor doing the feasibility study for this project. Polarconsult Alaska, Inc. will be mapping, doing geologic work, doing economic analysis and stream gauging for one year to determine if this project is viable. 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. To accomplish this project the Native Village of Cantwell will be using all of its resources. The village administrator has already spent many years to try and secure funding to do a feasibility study for this project and will continue to do so until a study is done for this project. The village has also used and will continue to use its office, computer, telephone, fax and other office equipment until this project is accomplished. Village members have and will continue to volunteer their time and experience (experience as an electrician, owner of a construction Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 7 of 14 7/21/2010 company, etc...) until this project is completed. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The Village Administrator will be the liaison between the village, Polarconsult Alaska and the Alaska Energy Authority for the duration of this project. The village will be submitting quarterly reports to the Alaska Energy Authority until this project is done. 3.6 Project Risk Discuss potential problems and how you would address them. One potential problem is not getting funding from the State of Alaska to do a feasibility study for the Jack River Hydro project. If this should occur the village will continue to look for funding through the State and the Federal Government to do this study. Another potential problem that the village might encounter, after doing a feasibility study and it is determined the Jack River Hydro project is viable and cost effective, is lack of funding to start construction. This project will provide the Alaska Intertie System with many benefits, that the village is encouraged to continue looking for funding through the State and the Federal Government to accomplish this project. 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. Attached are comments from Earle Ausman, PE with Polarconsult Alaska, Inc. that addresses the question above: Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 8 of 14 7/21/2010 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 village and the surrounding area (Carlo Creek and McKinley Village) are served off of the MEA-GVEA intertie (Alaska Intertie System). As mentioned earlier if an avalanche, winds or some other event causes an outage north or south of these areas; these areas will not have any power until the problem is fixed. 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. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 9 of 14 7/21/2010 As mentioned above the village is served off of the MEA-GVEA intertie (Alaska Intertie System). The Jack River Hydro project can serve as power for standby for the Cantwell, Carlo Creek and McKinley Village areas. The Jack River Hydro project will benefit the communities that are served off of the Alaska Intertie System (the Alaska Intertie System runs between Fairbanks and Anchorage) because it will add renewable power to the system. The renewable power generated by the Jack River Hydro project will also help lower power costs for all communities along the intertie system. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Energy costs for communities served off of the Alaska Intertie System are high due to the high costs of fuel. The Native Village of Cantwell is spending $300.00 (this cost will increase as it gets colder) on electricity to heat the Cantwell Community Hall where the village council office is located. The Jack River Hydro project can help lower this cost by providing renewable power to the Alaska Intertie System. 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 Once the village secures funding to do feasibility study the village will hire Polarconsult Alaska, Inc. to address these questions. Polarconsult Alaska, Inc. has the experience and knowledge to answer the questions above. Concerning the land ownership where this project is located, the village has already entered into discussions with Ahtna, Inc. concerning this project. Ahtna supports the village on this project. 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. As mentioned above the village has already had discussions with Ahtna, Inc., land owner where this project is located, and are in support of the village on this project. Once a feasibility study is done and it is determined this project is viable the village will formally submit paperwork to Ahtna, Inc. to use the land where this project is located. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 10 of 14 7/21/2010 outstanding permit issues.  List of applicable permits  Anticipated permitting timeline  Identify and discussion of potential barriers Once the village secures funding to do a feasibility study for this project the village will hire Polarconsult Alaska, Inc. and with their experience and knowledge they will be able to better answer the questions above. 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 Once the village secures funding to do a feasibility study for this project the village will hire Polarconsult Alaska, Inc. and with their experience and knowledge they will be able to answer the environmental questions above. 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 a nd 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 Native Village of Cantwell is trying to secure the amount of $200,000.00 to do a feasibility study for the Jack River Hydro project. Below is a quote from Earle Ausman, PE / President and Chief Engineer with Polarconsult Alaska, Inc: Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 11 of 14 7/21/2010 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.) Once the village secures funding to do a feasibility study for this project the village will hire Polarconsult Alaska, Inc. and with their experience and knowledge they will be able to answer the questions above. 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 Once the village secures funding to do a feasibility study for this project the village will hire Polarconsult Alaska, Inc. and with their experience and knowledge they will be able to answer the questions above. 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. Please see attached cost worksheet. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 12 of 14 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 Cities that are connected to the Alaska Intertie System that runs between Fairbanks and Anchorage will benefit from this project. Renewable power that the Jack River Hydro Project will add to the Alaska Intertie System will lower the cost of energy to all cities served off of the Alaska Intertie System. Standby power for the Cantwell, Carlo Creek and McKinley Village areas is another benefit that this project will provide. Currently if an avalanche, wind or some other thing causes an outage north or south of these areas, these areas will not have any power until the problem is fixed. 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 the village secures funding to do a feasibility study for this project the village will hire Polarconsult Alaska, Inc. and with their experience and knowledge they will be able to answer the questions above. 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. Once the tribe is awarded this grant, the tribe will hire Polarconsult Alaska Inc. to do a feasibility study for the Jack River Hydro Project. The tribe has been working with Polarconsult Alaska, Inc. for several years to get a feasibility study done for the Jack River Hydro Project. Currently the tribe has not been able to secure any funds to do a feasibility study for this project. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 13 of 14 7/21/2010 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. As mentioned above the village is served off of the MEA-GVEA intertie (Alaska Intertie System). The Jack River Hydro project can serve as power for standby for the Cantwell, Carlo Creek and McKinley Village areas. The Jack River Hydro project will benefit the communities that are served off of the Alaska Intertie System (the Alaska Intertie System runs between Fairbanks and Anchorage) because it will add renewable power to the system. The renewable power generated by the Jack River Hydro project will also help lower power costs for all communities along the intertie system. Attached to this application are letters of support from David M. Talerico (Denali Borough Mayor), Steven W. Denton (V.P. Business Development, Usibelli Coal Mine, Inc.), Paul R. Anderson (Superintendent, Denali National Park and Preserve), Michel J. Wright (GVEA, Vice President of Transmission & Distribution) and Kathryn Martin (Ahtna, Vice President Land and Resources). 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. The Native Village of Cantwell is requesting the amount of $190,000.00 to do a feasibility study for the Jack River Hydro Project. The village has been trying to get a feasibility study done for this project for several years and the village has been using its own funds to pay the administrator to accomplish this goal. Village members have and will continue to donate their time and experience to this project until this project is complete. 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. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 14 of 14 7/21/2010 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 Signature Title Date