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HomeMy WebLinkAboutVirgin Creek Hydro AppBERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION VIRGIN CREEK HYDROELECTRIC PROJECT NOVEMBER 10, 2009 PAGE 1 OF 8 SECTION 1. - APPLICANT INFORMATION Name Bering Pacific Engineering Type of Entity: Private Corporation Mailing Address 8309 Sand Lake Rd Anchorage, AK 99502 Physical Address 8309 Sand Lake Rd Anchorage, AK 99502 Telephone 245-8031 Fax Email Daniel.Hertrich@gmail.com 1.1. Applicant point of contact Name Daniel Hertrich Title: Partner Mailing Address 8309 Sand Lake Rd Anchorage, AK 99502 Telephone 245-8031 Fax Email Daniel.Hertrich@gmail.com 1.2. Applicant minimum requirements 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 X An independent power producer, or A local government, or A governmental entity (which includes tribal councils and housing authorities); TBA 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 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 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 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. BERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION VIRGIN CREEK HYDROELECTRIC PROJECT NOVEMBER 10, 2009 PAGE 2 OF 8 SECTION 2. - PROJECT SUMMARY 2.1. Project Title Virgin Creek Hydroelectric Project. 2.2. Project Location The project is located on Virgin Creek near Turnagain Arm in Girdwood . Refer to the USGS Seward D-6 Quadrangle for a map of the location. 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 The Virgin Creek Hydroelectric Project is a potential hydroelectric resource in the Girdwood valley with a capacity of 1.2 MW. A feasibility study is required to determine the appropriate project size and to scope development issues. 2.5. Project Benefit Completion of this study will benefit the railbelt utilities because it will provide the information needed to determine whether a viable hydroelectric project can be constructed at Virgin Creek. The public benefit is the cost to perform the study. In terms of a completed project, the benefits include added renewable energy capacity for the railbelt, a source of income for the Heritage Land Bank, increased recreational opportunities, improved grid efficiency, generation diversity, and reduced consumption of dwindling natural gas supplies in Cook Inlet. Additional project benefits include the educational opportunities created by engaging UAA students to complete hydrology and environmental studies and the opportunity to develop a university hydraulics test lab as part of the project’s infrastructure. 2.6. Project Budget Overview The cost of the feasibility study will be $150,000. Of this portion, Bering Pacific Engineering will fund $25,000 in in-kind work in addition to the reconnaissance study that is in draft and valued at $10,000. BERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION VIRGIN CREEK HYDROELECTRIC PROJECT NOVEMBER 10, 2009 PAGE 3 OF 8 2.7. Cost and Benefit Summary Grant Costs 2.7.1 - Grant Funds Requested in this application $125,000 2.7.2 - Other Funds to be provided (Project match) $25,000 2.7.3 - Total Grant Costs (sum of 2.7.1 and 2.7.2) $150,000 Project Costs & Benefits 2.7.4 - Total Project Cost (summary from cost worksheet) $4,200,000 2.7.5 - Estimated direct Financial Benefit (savings) $7,400,000 2.7.6 - Other Public Benefit (explain in section 5) $0 SECTION 3. - PROJECT MANAGEMENT PLAN 3.1. Project Manager Daniel Hertrich will be the project manager. Mr. Hertrich will be responsible for overseeing the work, processing invoices, interfacing with the grant administrators, and ensuring compliance with all the grant conditions. 3.2. Project Schedule The study, because of the collection of hydrology data, will take approximately one year from the time the grant is awarded and a consultant is retained to perform the work. 3.3. Project Milestones The basic project milestones, based on the schedule above, are the following: · Task 1 - project mapping, comprehensive plan reviews and land use investigation, public meetings, and project management · Task 2 - surveying, hydrology and environmental data collection · Task 3 - project analysis, conceptual design, cost estimate, and reporting. 3.4. Project Resources Daniel Hertrich and Joel Groves of Bering Pacific Engineering will be performing the work on the project. Bering Pacific Engineering will be collaborating with the students from UAA on all phases of the project. BPE will coordinate task 2 activities with Brian Yanity of the University of Alaska Anchorage (UAA) in order to engage UAA graduate and/or undergrad students in the collection and analysis of hydrology and other environmental data. 3.5. Project Communications Mr. Hertrich will be th e primary point of communications. 3.6. Project Risk The project only involves data collection and evaluation of the potential resource. Lack of funding simply halts the effort and no party incurs risk. BERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION VIRGIN CREEK HYDROELECTRIC PROJECT NOVEMBER 10, 2009 PAGE 4 OF 8 SECTION 4. - PROJECT DESCRIPTION AND TASKS 4.1. Proposed Energy Resource The Virgin Creek hydroelectric project is characterized by the following preliminary configuration: Virgin Creek Project Information basin area 2.6 sq mi intake elev 850 Ft powerhouse elev 60 Ft static head 790 Ft project flow 26 Cfs penstock diameter 22 In penstock length 6800 Ft power output 1200 kW powerline length 5000 Ft net energy 5,300,000 kWh capacity factor 50% cost $4,200,000 O&M $ 150,000 benefit $7,400,000 B/C ratio 1.8 4.2. Existing Energy System 4.2.1. Basic configuration of Existing Energy System The project is located in the south central railbelt. The Girdwood area is serviced by Chugach Electric Association. 4.2.2. Existing Energy Resources Used The south central railbelt relies predominantly on natural gas for electrical energy generation. 4.2.3. Existing Energy Market The project is located in the south central railbelt. There is clearly a desire for renewable energy projects to be added to this area but the energy market for them is not well defined at this time. For the economic analysis in this application, an energy rate of $0.10 per kWh is assumed. 4.3. Proposed System 4.3.1. System Design The physical features of the Project include a typical run-of-river hydroelectric project. There is small diversion wall to capture the water in the creek. This is followed by a filtering system to remove debris and streambed material. The water is conveyed to the pipeline which transports water to powerhouse with minimal headloss. The high pressure water is fed into a turbine connected to a generator that is connected to the electrical grid by a high voltage transformer. A rural class road is built to the powerhouse while the intake is accessed by a construction road. BERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION VIRGIN CREEK HYDROELECTRIC PROJECT NOVEMBER 10, 2009 PAGE 5 OF 8 4.3.2. Land Ownership The project is located on land owned by the Heritage Land Bank. The mission of the Heritage Land Bank is to manage uncommitted municipal land in a manner designed to benefit the present and future citizens of Anchorage, promote orderly development, and achieve the goals of the Comprehensive Plan. HLB land manageme nt seeks to preserve and enhance the value of its inventory. HLB management practices are governed by the Anchorage Municipal Code (AMC 25.40). The code requires the adoption by the Anchorage Assembly of an Annual Work Plan, a Five-Year Management Plan, and policies and procedures which cover the management of the inventory and the HLB Fund. Land is held in the inventory for future municipal use, but may be withdrawn from the inventory and transferred to other municipal agencies if it is needed for the location of public facilities or other municipal purposes (schools, dedicated and designated parks, and open space). If HLB land is determined excess to specific public facilities or purposes, it may be subject to land disposal. Land disposal activities include: land sales, land exchanges, leases or easements. The HLB also issues permits for a variety of temporary use activities on HLB land. 4.3.3. Permits Permits for the project will involve the typical state permits, an Army Corps of Engineers wetlands permit, Municipality of Anchorage zoning and permitting, and approval from HLB. The following is list of the anticipated permits and approvals required for this project: · Water Use Permit / Water Rights (ADNR) · Access easement (AKRR, MOA HLB, ADNR) · lease, sale, or other approval of land use (MOA HLB) · Fish Habitat Permit (ADFG) · Nationwide Permit 17 for Hydropower Projects – for incidental wetlands fill and similar matters (Army Corps of Engineers) · Alaska Coastal Management Program Consistency Review (ACMP) · Finding of non-jurisdiction (FERC) · Archeological consultation (SHPO) · Municipality of Anchorage building permit 4.3.4. Environmental Environmental issues are not known at this time but the feasibility study will collect baseline data on the environment affected by the project. Project scoping and data collection during this phase of work will determine whether any environmental issues need to be addressed. Researchers and students from UAA’s Environment and Natural Resources Institute are already involved in environmental monitoring and stream flow measurement in the Virgin Creek watershed, and will assist in the following studies: · Seasonal fish surveys in the Virgin Creek watershed · Collection of baseline habitat data in the proposed project area · Preliminary wetlands assessment · Assessment of visual impacts on water falls and other natural features BERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION VIRGIN CREEK HYDROELECTRIC PROJECT NOVEMBER 10, 2009 PAGE 6 OF 8 4.4. Proposed New System Costs (Total Estimated Costs and proposed Revenues) 4.4.1. Project Development Cost The reconnaissance study did not find any unique or difficult issues that would significantly affect the project cost. The cost for the development of the project is presumed to be $3,500 per kW. The feasibility study will collect the data necessary to provide a project cost estimate. 4.4.2. Project Operating and Maintenance Costs Operation and maintenance costs for the project are estimated to be $150,000 per year. The feasibility study will examine operation and maintenance costs in detail. 4.4.3. Power Purchase/Sale For the purposes of economic analysis, it is assumed that energy from this project can be marketed at a rate of $0.10 per kWh. The feasibility study and future developments with other renewable energy projects in the railbelt will, in the near future, determine whether this an appropriate rate. 4.4.4. Cost Worksheet Attached is a completed cost worksheet for the project. SECTION 5. - PROJECT BENEFIT The presumed project benefit is based on the energy it produces valued at $0.10 per kWh, less the operation and maintenance costs, calculated as a present worth over a 30 year period with a discount rate of 3%. Additional benefits including renewable energy tax credits and carbon credits are not included in the benefit. The feasibility study will address the primary project benefits along with the secondary benefits as well. By directly engaging university students in resource and environmental investigations for a commercial hydroelectric development, this project will provide significant educational benefits. Beyond the direct educational experiences of the individual students that are engaged in project-related studies, this collaborative effort will build relationships between the project developers and UAA faculty and staff that can lead to additional future partnerships to enhance the quality and depth of renewable energy- related curriculum at UAA. Additionally, BPE will work with Brian Yanity, during the feasibility phase to scope out the specific project features that would be necessary for the hydroelectric project to serve as a hydraulics test lab for UAA. SECTION 6. - SUSTAINABILITY Hydroelectric projects have proven to be, and still are, the most sustainable power generation investment throughout Alaska. No other generation technology has come close to having the historical longevity and low maintenance requirements of hydroelectric projects. Once the hurdle of the initial capital construction cost is overcome, the projects are successfully maintained and renewed by all classes of communities in Alaska. BERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION VIRGIN CREEK HYDROELECTRIC PROJECT NOVEMBER 10, 2009 PAGE 7 OF 8 SECTION 7. - READINESS AND COMPLIANCE WITH OTHER GRANTS A reconnaissance study has been drafted as of the date of this application. A final version of this study will be available within the next month. The feasibility work proposed in this grant application could begin immediately after award of the grant. SECTION 8. - LOCAL SUPPORT The railbelt utilities are generally in support of evaluating potentially economically viable renewable resources to add to the railbelt generation portfolio. SECTION 9. - GRANT BUDGET The grant budget form is attached. Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09 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. 50% est (feasibility study to determine) Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other l b) 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] ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09 3. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kWh or MMBtu/hr] 1,200 kW b) Proposed Annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 5,300,000 kWh ii. Heat [MMBtu] c) Proposed Annual fuel Usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] iv. Other 4. Project Cost a) Total capital cost of new system $4,200,000 b) Development cost $300,000 c) Annual O&M cost of new system $150,000 d) Annual fuel cost None 5. Project Benefits a) Amount of fuel displaced for i. Electricity 5,300,000 kWh ii. Heat iii. Transportation b) Price of displaced fuel $0.10 per kWh c) Other economic benefits d) Amount of Alaska public benefits $530,000 per year 6. Power Purchase/Sales Price a) Price for power purchase/sale 0.10 $/kWh 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio $7,400,000 / $4,200,000 = 1.8 Payback Renewable Energy Fund Grant Round III Grant Budget Form 10-7-09 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS Task 1 - scoping and project management 3/1/2010 $50,000 $10,000 Cash and In-kind $60,000 Task 2 - data collection 10/15/2010 $45,000 $10,000 Cash and In-kind $55,000 Task 3 - analysis and reporting 6/1/2010 $30,000 $5,000 Cash and In-kind $35,000 TOTALS $125,000 $25,000 $150,000 Budget Categories: Direct Labor & Benefits $105,000 $25,000 $130,000 Travel & Per Diem $0 Equipment $0 Materials & Supplies $0 Contractual Services $20,000 $20,000 Construction Services $0 Other $0 TOTALS $125,000 $25,000 $150,000 Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)- Add additional pages as needed