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HomeMy WebLinkAboutAVCP Housing Wind Turbine Application Renewable Energy Fund Round 3 Grant Application AEA 10-015 Application Page 1 of 14 10/7/2009 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-III.html Grant Application Form GrantApp3.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 Costworksheet3 .doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget3.d oc 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 GrantBudgetInst ructions3.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 3 AEA10-015 Grant Application Page 2 of 14 10/7/2009 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 St., Bethel, AK 99559-0767 Telephone 907-543-3121 Fax 907-543-3933 Email Principal: ron@avcphousing.org 1.1 APPLICANT POINT OF CONTACT Name Mr. Allen Joseph Title Grants Coordinator Mailing Address PO Box 767 Bethel, AK 99559 Telephone 907-543-0079 Fax 907-543-3933 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 3 AEA10-015 Grant Application Page 3 of 14 10/7/2009 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 Turbines 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 RHA Campus at 405 Ptarmigan St., Bethel, AK 99559. 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 warehouses. 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) X Reconnaissance X Design and Permitting X Feasibility X Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The AVCP Housing Wind Turbine Project is to purchase land from the City of Bethel for the site of the two turbine towers, construct the power line extension to the new AVCP RHA Office Complex, purchase and construct the wind turbines and the generator building. The total 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. The two wind turbines are projected to supply 582,486 kWh annually. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 4 of 14 10/7/2009 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.) At the current rates, the annual projected cost of electricity for the buildings and rental units that will benefit from this project would be $310,443.67 for 581,573 kWh. 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/yr.). 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. 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 AVCP Housing Wind Turbines Project is $4,494,546. This grant request is for $3,744,546. It is for land acquisition, civil drawings and design and pile testing, 2 wind turbines and towers, construction, power line extension construction, and remote monitoring software project management and training. AVCP Housing will finance $750,000 for the construction of the 50’ x 50’ generator power and controls building. 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. $ 3,744,546.00 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) $ 4,494,546.00 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) $ 4,494,546.00 2.7.5 Estimated Direct Financial Benefit (Savings) $ 181,000.00 /yr. 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 /yr. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 of 14 10/7/2009 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 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.) Acquire land 9-11/2010. Design & pile test 12/2010-2/2011. Acquire towers & turbines 3- 4/2011. Tower site construction 5-6/2011. Tower installation 6-8/2011. Monitoring software 6- 7/2011. Maintenance training 5-8/2011. Power line ext. work request 3-2011. Controls building const. 4-10/2011. Power line construction 6/2011. Grant close out 12/31/2011. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. The Milestones must also be included on your budget worksheet to demonstrate how you propose to manage the project cash flow. (See Section 2 of the RFA or the Budget Form.) Milestone 1 is the negotiations and purchase of land from the City of Bethel. 9-11/2010 Milestone 2 is the completion of the environmental review. AVCP RHA processes E.R.s according to NEPA. 12/2010 Milestone 3 is the procurement of the civil drawings, pile testing & foundation design. 12/2010 Milestone 4 is the drafting of the Operations & Maintenance manual of the wind turbine power system. 12/2010 Milestone 5 is the completion of the civil drawings, pile testing & foundation design. 2/2011 Milestone 6 is the finalization of the Operations & Maintenance manual. 2/2011 Milestone 7 is the procurement the towers and turbines. STG of Montana is the only source and manufacturer of the Northwind Wind Turbines recommended for AVCP Housing. 3-4/2011 Milestone 8 is the beginning of the training for maintaining the wind turbine system. 3/2011 Milestone 9 is the request for work of the power line extension. City of Bethel constructs power lines with advance payment from customer. 3/2011 Milestone 10 is the shipment of the towers and turbines. 4-5/2011 Milestone 11 is the beginning of the construction of the controls building. 4/2011 Milestone 12 is the beginning of construction at the tower site. Preparation for installation of the wind turbine towers. 5/2011 Milestone 13 is the third month of the training for maintaining the wind turbine system. 5/2011 Milestone 14 is the second month of the tower site construction, substantial completion. 6/2011 Milestone 15 is the purchase of the wind turbine system monitoring software. 6/2011 Milestone 16 is the construction of the power line extension. 6/2011 Milestone 17 is the receipt of the towers by barge. 6-7/2011 Milestone 18 is the third month of the tower site construction, tower installation starts. 7/2011 Milestone 19 is the fifth month of the training for maintaining the wind turbine system. 7/2011 Milestone 20 is the midpoint of the controls building construction, exterior complete. 7/2011 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 14 10/7/2009 Milestone 21 is the completion of the power line extension construction. 8/2011 Milestone 22 is the completion of the tower installation. 8/2011 Milestone 23 is the last month of the training for maintaining the wind turbine system. 9/2011 Milestone 24 is the completion of the controls building construction. 10/2011 Milestone 25 is the utilization of the wind turbine system. 11/2011 Milestone 26 is the grant close-out. 12/2011 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 the AVCP RHA, will have oversight responsibilities for the AVCP Housing Wind Turbines Project, from its design to the ordering and procuring of construction materials, to the construction and completion of the project. Mr. Killeen will be responsible for planning and development of the project, including bid and award notices, shipment and delivery of the materials to the construction site, and construction of the project and final inspection(s). He will supervise the construction contractor which will be hired, with bid award, for the construction of the wind turbine towers/site and the power controls building. Mr. Killeen, VP of Development, 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 managers and supervises any outside construction firms, architects, grant writers, and consultants contracted by AVCP RHA. 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. The materials (turbines and towers) will need to be ordered in March 2011 for barge shipment to arrive in June. It is expected that all other materials, such as sand and gravel for fill and foundation, and equipment necessary to complete the project, are available locally and will be purchased or rented by AVCP RHA or the contractor. Bethel Utilities Corporation (BUC) is the electric utility for the Bethel area. Lenny Welch of BUC provided the estimate for the power line extension. BUC requires advance payment since it charges for service work of power line extension construction. BUC will own and maintain the power line. 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 have been determined by Mr. Killeen, VP of Development AVCP RHA, along with Clinton White of STG incorporated’s Business Development section, and 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 3 AEA10-015 Grant Application Page 7 of 14 10/7/2009 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. 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 2/2008. 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, in Bethel. Two Northwind 100/21 will produce 582,486 kWh, and the AVCP RHA expected annual need is 581,573 kWh. The current fuel cost billed by the electric utility is at the rate of $0.1345/kWh. At this rate, the annual fuel usage charge for 581,573 kWh is about 14,621 gallons at $5.35/gal. The fuel usage will be greatly reduced when wind energy is utilized. The use of wind generated power is Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 of 14 10/7/2009 considered the most economical alternative to providing reliable power to the office complex and offers the additional benefit of providing power to Low Income Rentals in the AVCP RHA campus. The Bethel Utilities Corporation is currently meeting a demand load that is nearing circuit capacity for the area the AVCP RHA campus is located. Therefore, a power line extension is necessary for the AVCP office complex and campus. The primary “con” to wind generated power is the fact this is new technology being utilized in the region and will require new training of current power maintenance personnel. However, the use of wind powered generators in the past has led to many “lessons learned” that have been integrated into the development of today’s modern wind generators. AVEC has been successful in integrating wind powered generators in many of its regional member communities and their experiences will help AVCP RHA learn the idiosyncrasies associated with operating and maintaining wind powered electrical systems. 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 17 to 33 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 the Bethel Utility Corporation (BUC) power generation plant. This plant relies upon diesel powered electrical generators to meet the electrical demand of the community. The introduction of wind powered generators will enable BUC to reduce its demand level and potentially reduce waste energy by better aligning active generators with community power demands. In the long term, the wind generators will enable BUC to add customers without exceeding the power capacity of its current generators. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The tenants in the Low Income Rentals and the Lulu Herron Congregate Housing do not benefit from the State of Alaska PCE adjustment since the electric accounts are under the name of AVCP RHA. The monthly electric bills for 48 tenants would be reduced by as much as 75%. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 of 14 10/7/2009 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: Northwind 100/21: 100 kW, 3- phase, 4-wire 480VAC rated power output, 21 meter rotor (69 ft.), variable speed stall-controlled, 37-meter hub height. Two of these units will provide an optimum installed electrical generation capacity of 582,486 kWh annually. There are no anticipated barriers to implementing this system. This alternative has been coordinated through the Bethel Planning Commission and the Bethel Utility Corporation. The system will rely primarily upon wind generated power with a traditional diesel fueled generation system as backup. Waste electricity will be used to generate hydronic heat for tempering various buildings upon the AVCP RHA campus. 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 tower sites will be within an 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. 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, 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 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 of 14 10/7/2009  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 issues are anticipated with this project. However, the National Environmental Protection Act process will be followed to evaluate potential impact and will result either in an Environmental Review, “Finding of No Significant Impact,” or “Environmental Impact Statement.” 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 Phase I total cost is $670,000. It is for the land area that the 2 turbine towers will be on. Phase I grant request is $670,000. Phase II total cost is $80,000. It is for the procurement of civil drawings, pile testing & foundation design. The environmental review will be done by AVCP RHA staff according to NEPA. And, the O&M manual will be drafted. A feasibility analysis has already been done, it is the AVCP RHA “Wind Energy Study” of 4/14/2009 and the cost was $33,413.50. Phase II grant request is $80,000. Phase III presently has no cost budgeted since it is the period where we confirm that the environmental review, land purchase, O&M manual, and the civil drawings/ pile testing/ foundation design are completed. Phase IV total cost is $3,744,546. Phase IV grant request is $2,994,546. Development of the wind tower site and the installation of the towers is $1,500,000. The 2 wind turbines and towers total $1,326,000 with freight included. The power line extension construction is $108,546. The remote monitoring software and training is $60,000. The AVCP RHA will finance the construction of the power control building for $750,000. The projected capital cost of this project is $2,746,000 and the project development cost is $1,748,546. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 14 10/7/2009 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 maintenance and operation costs are based on $0.11 per kWh. For the annual use of 581,573 kWh, the cost would be about $65,000. The current electric utility cost per year is about $310,445. The Cost of Power Adjustment Surcharge (fuel cost) is @.1345kWh, and the Energy Charge is @.3673 kWh. Electric utility costs are budgeted annually and their budget could reduce by as much as 75%. 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 Potential of 48 customers. There are 32 apartments in the Low Income Rental units and 16 apartments in the Lulu Herron Congregate Housing. The present AVCP RHA offices will be renovated and turned into more Low Income Rental units. They will be billed for their portion of the maintenance and operation costs since AVCP RHA is a non-profit TDHE. The electric bills for the tenants could reduce by as much as 75%. 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 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 units in the Low Income Rental units (32) and the Lulu Herron Congregate Housing (16). Their annual energy usage is 155,529 kWh. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 12 of 14 10/7/2009 Their annual electric bill totals to about $ 83,022. With the wind turbine maintenance and operation cost to be about $17,200 annually, their savings will be $65,822 per year. The current fuel cost billed by the electric utility is at the rate of $0.1345/kWh. At this rate, the annual fuel usage charge for 581,573 kWh is about 14,621 gallons at $5.35/gal. For a 20 year period, the total fuel displaced would be 292,420 gallons, $1.5 million at $5.35/gal. 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 operations and maintenance manual will be made within this project. The AVCP RHA includes electric utility in its annual budget and the tenants are billed for their metered electric usage. With the wind generated electricity, the annual costs will be reduced by as much as 75%. The AVCP RHA campus will be on a local electric utility system while utilizing wind generated electricity. Reports as required by AEA will be made after the completion of this project. 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 area of land where we propose to build the wind turbine towers is uninhabited. An appraisal within a subdivision block was done in 1/2008. Negotiations will be done with the landowner, the City of Bethel, when the project is funded. A feasibility study, the AVCP RHA “Wind Energy Study” was completed on 4/14/2009. The Northwind 100/21 has been recommended and the turbines and towers will be ordered after the civil drawings, pile testing & foundation design are completed. The optimum time to order the turbines and towers is in March and they could be shipped to arrive in the first barge in June. The project manager, Mr. Joe Killeen, VP of Development of the AVCP RHA, has many successful years of working with architecture and development of construction projects in Alaska and California. He will manage the project and be responsible for the start and completion of each phase. Policies are in place for procurement and accounting and Mr. Killeen has a team of project planners and project managers. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 13 of 14 10/7/2009 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. The Wind Turbine Project was among the planned grant applications for NAHASDA grants that were open. But the July 2009 NAHASDA grant application was not successful. The letters of support from member tribes are attached. 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 $3,744,546.00 in grant funds. The matching portion of $750,000.00 will be financed by AVCP RHA. The proposed area of the wind turbines was appraised in January 2008. A feasibility study, the AVCP RHA “Wind Energy Stu dy”, was completed on 4/14/2009 for $33,413.50. The environmental review will be completed by AVCP RHA staff according to the NEPA process. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 14 of 14 10/7/2009 SECTION 9 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. 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. 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. F. 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 November 10, 2009