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HomeMy WebLinkAboutUgashik REF 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) Ugashik Traditional Village Type of Entity: Alaska Native Tribe Mailing Address 206 E. Fireweed Lane Suite 204 Anchorage, Alaska 99503 Physical Address 206 E. Fireweed Lane Suite 204 Anchorage, Alaska 99503 Telephone 907-338-7611 Fax 907-338-7659 Email Ugashik@alaska.net 1.1 APPLICANT POINT OF CONTACT Name Alex P. Tatum Title Tribal Manager Mailing Address 206 E. Fireweed Lane Suite 204 Anchorage, Alaska 99503 Telephone 907-338-7611 Fax 907-338-7659 Email Ugashik@alaska.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 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) Thermal Engine Generator System (TEGS) for Ugashik, AK. 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. One system in the community center and an additional system in each of the five other permanent dwellings in Ugashik, AK. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas X 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 X Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. BRI proposes an 18-month program incorporating a field deployment of six (6) pre-production, 1kW Thermal Engine Generator System (TEGS) units for waste heat conversion to electric power in Ugashik for the 2010 winter season. Unlike larger Renewable Energy (RE) resources (i.e. wind/hydrokinetic) that interface to an existing power grid, TEGS will produce energy for individual structures. TEGS is designed for deployment in remote areas where electrical power is a scarce, but valued, commodity. The system is designed as a retrofit for existing heating stoves, converting waste heat into mechanical energy. The heart of the system is a proprietary, single-cylinder, beta-type Stirling cycle heat engine. The project includes installation to meet safety standards, assessment of mechanical and electrical performance, reliability, maintainability, and overall suitability for commercial sales. Appropriate instrumentation, spares, operating instructions, training, data analysis, and reporting are included in this effort. Stoves used in tests will be renovated or replaced following the conclusion of the test. 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.) Electricity is an expensive and indispensible commodity in most rural communities like Ugashik, Alaska. BRI plans to introduce TEGS in the small community of Ugashik, AK, in an effort to demonstrate small-scale waste heat reclamation as a cost-effective source of electrical power generation. Heating in Alaska is commonly accomplished by oil-fired, wood, or coal stoves. TEGS efficiently converts the surplus thermal energy from a heating appliance to electrical energy, thus reducing the need for power generation via diesel generators. During the heating season, TEGS produces very low-cost electricity, but also offers a number of additional benefits:  Convenience. The TEGS is retrofit into existing indoor heat appliances, so the difficulty and frequency of transporting fuel to a generator shed is reduced.  Flexibility. TEGS operates from the excess thermal energy from the combustion taking place inside the heating appliance regardless of fuel type used by the heater.  Redundancy. TEGS and its power storage bank offer redundancy to existing generators.  Near silent operation. TEGS is a low-noise device, and its use may reduce the need to run existing power generation  Low maintenance costs. Estimated time between overhauls is 12,000 hours -- even under heavy use, this typically equates to three (3) years between overhauls.  Rapid cost recovery. On average, each TEGS unit will pay for itself in about 30 months -- and, as TEGS production increases, the cost-per-system will decline and cost recovery time will become shorter.  Health benefits. Reduction in noxious exhaust gas as diesel use is offset by TEGS power production. Benefits are to both local health and to the atmosphere in the form of reduced Greenhouse gas emissions. 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. See Material Costs and Labor Costs attachments for cost breakdown. Ugashik contribution: $ 7,500 In Kind BRI contribution: $ 7,500 Cash AEA grant request: $217,170 Total project: $232,170 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. $ 217,170 2.7.2 Other Funds to be provided (Project match) $ 15,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 232,170 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 of 14 10/7/2009 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) $ 232,170 2.7.5 Estimated Direct Financial Benefit (Savings) $ 36,828 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.) $ Based upon the success of the project, the public benefit could extend well beyond just Ugashik. 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. The project manager will be Alex P. Tatum, Tribal Manager for Ugashik Traditional Village. Tatum has completed all course work for an MS degree in Project Management from the University of Alaska (UAA) Anchorage. And, specific to this project, Tatum holds a MS degree in Global Logistic and Supply Chain Management. Over the course of his career Tatum has been the project manager on numerous public and private projects. For additional information on Tatum see the attached resume. 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.) For labor detail, please see LABOR COSTS worksheet. I. Site survey and planning -- 1 month II. System build-up -- 6 months III. Installation and training -- .5 month (2 wks.) IV. Monitoring and data collection -- 8.5 months V. Data analysis, evaluation and final report -- 2 months 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 I. Site survey completion. Project Start Date + 1 month Milestone II. Completion of system build-up. Start date + 7 months Milestone III. Installation of systems and user training completed. Start date + 7.5 months Milestone IV. Completion of 8.5-month monitoring and data collection. Start date + 16 months Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 14 10/7/2009 Milestone V. Submission of final evaluation and report. Start date + 18 months 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. All personnel, equipment, and services provided by BRI. LTC(R) James H. Boschma, President of Boschma Research, Inc. (BRI) has an M.S. degree in Engineering Management from the University of Alaska, and a B.S. degree in Aeronautics from Embry Riddle University. He is a veteran with 23 years of active duty in the US Army and a graduate of the DOD Defense Systems Management School. After he retired from the Army, he worked as a Division Manager for Applied Research, Inc.; formed his own company, BOSCH Aerospace, Inc., where he successfully completed numerous contracts and then sold the company to a large corporation. With his new company, BRI, he is concentrating on renewable energy projects utilizing Cycloidal Underwater Turbines and Stirling cycle engines for power generation; and lighter-than-air platforms for communications and surveillance. His career expertise has included design and analysis of advanced ballistic missile interceptors and interceptor systems (i.e., Braduskill Interceptor Concept [BIC]), exo-atmospheric interactive discrimination, high- and low- altitude long-endurance unmanned aerial vehicles, aircraft propulsion, Stirling engine applications, and other applications of emerging technologies for defense and commercial needs. He is also a research pilot and Aviation Safety Manager. He has numerous published technical papers and patents (available on request). Principal Investigator for this effort will be BRI’s Director of Technology, Scott Hurst. Mr. Hurst earned his bachelor’s degree from the University of Alabama in Huntsville in 1998. On March 03, 2004, he incorporated Thermal Engine Corporation (TEC) as an Alabama sub-chapter S corporation, and opened a 7,000 square-foot manufacturing and office facility in Madison, Alabama. Scott served as the principal engineer on each of TEC’s many Stirling engine designs. The company’s products quickly became popular, and by the close of 2008, TEC had manufactured and sold nearly 10,000 Stirling-powered products in five continents. He also has experience designing high-output renewable fuel engines and multi-fuel engines; and was the principal designer/engineer for the Heat Wave wood stove fan, and the Whisper GP gas/pellet fan. Prior to TEC, he was employed by Global Majic Software, a Huntsville, Alabama-based company, initially as a software simulation engineer, then serving as their chief operations officer until 2003 when he left GMS to pursue his long-held ambition of starting an alternative energy engine research and development company. He is knowledgeable in all aspects of Stirling engine production from design to large-scale production. In 2009, he joined Boschma Research, Inc. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. BRI uses Microsoft Project Manager, a software tool that allows us to examine monthly performance against project goals, schedule, and costs. The Ugashik Tribal Council project Manager (PM) will require that the prime contractor provide monthly updates using Microsoft Project Manager, a software program that facilitates monitoring of project progress against a baseline project plan. The primes Principle Investigator (PI) will be required to develop a detailed work breakdown structure listing all anticipated tasks and resources required to complete each Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 7 of 14 10/7/2009 task, with a detailed schedule on the MS Project Software. This detailed Work Breakdown Structure WBS will be required within the first 8 working days after award. The program details, and projected schedule will be reviewed by the PM and his approval will be required before significant work starts. The Ugashik PM will monitor the program through face to face meetings, phone, and video conferences. Once the waste heat motor/generators are deployed the PM will monitor progress via site visits, monthly reports, and achievement of technical milestones. Milestone completion, costs, and schedule will be compared to the baseline and where needed the PM will direct the contractor to develop work-arounds or alternative actions to overcome problems. Quarterly reviews using video conferencing will be conducted, visits to contractor facilities, and contractor visits to Ugashik will be scheduled at 6 month intervals. 3.6 Project Risk Discuss potential problems and how you would address them. No appreciable risks are known to exist in 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. See PERFORMANCE section of ‘Material Costs’ worksheet for energy potential. This project will evaluate and document the performance of a waste-heat conversion system that can be retrofitted to existing heating systems in individual dwellings and structures. By converting waste heat from common heaters to electricity, the TEGS offers communities that are not on a grid, such as Ugashik, low cost electricity and reduced consumption of hydrocarbon- based fuels, or other combustibles, throughout the heating season. TEGS is equally effective in reducing energy consumption in dwellings and structures that are tied to an existing power grid. The core technology in this system is a Beta type Stirling cycle engine. The Stirling cycle has been in use since the early 1800’s in many different forms, and continues to be utilized in high- technology applications, such as space vehicles; and low tech areas, such as ventilation fans. By adapting modern materials, such as vapor-grown carbon (thermal transport ~ 2000 Watts meter degree Kelvin), self-lubricating metals, precision machining, and high-thermal transport capacity Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 of 14 10/7/2009 operating gas, such as Helium, we have developed a small, lightweight engine with a capacity of one (1) kW. The engine performance is highly sensitive to differential temperatures between the “hot side”, where operating gas expansion takes place; and the “cold side”, where operating gas contracts. The greater the temperature difference between hot and cold side, the more power generated. The Arctic winter environment provides an abundant flow of cold air that further optimizes the system’s performance. This utilization is a logical follow-on to previous successful developments and commercialization of small Stirling systems by the Principle Investigator (PI), Mr. Scott Hurst, developer of the Heat Wave and Whisper GP stove fan series with more than 8,000 units sold. The resource evaluation and assessment will be comprehensive and address safety, performance, reliability, maintainability, O&M, user acceptance, and cost effectiveness. Each unit is capable of producing up to 24 kW hours per day during periods of high-heat production by a conventional oil-fired home heating unit. Exact output will depend upon the heat source temperature; however, even at low heat settings, sufficient conversion will occur and output levels of approximately 400 - 500 Watts is expected. A battery storage bank will be included for storage of excess electricity for later consumption by the users. (Note. At Ugashik, diesel generators and battery storage banks are common to occupied structures.) The program will assess the performance and suitability of the TEGS resource in structures common in Arctic regions during the 2010 heating season. Six units will be provided to the community, with one unit being installed in the Council House, and five units installed in dwellings within the community or in the surrounding area. Volunteers for these “Beta Tests” of the TEGS will be identified and provided instruction and training on the operation of TEGS. Custom installation to existing heating systems will be conducted by the contractor to mate the TEGS to existing heat sources, while maintaining safety standards. Instrumentation and data recording hardware will be installed with the TEGS, and periodic examination of the hardware will be conducted during the evaluation period. One or two local individuals will be trained by the TEGS contractor to conduct troubleshooting and minor repairs of the six (6) TEGS devices. Two (2) TEGS spare units will be available at Ugashik during the evaluation period. Objective and subjective data from the evaluation will be collected monthly and utilized for reporting purposes, and in the assessment of the hardware performance. Written monthly reports will be provided, and a final report will be developed and delivered. The final report will provide an overview of the entire series of tests, both positive and negative. Deficiencies, failures, maintenance actions, maintenance downtime, maintenance parts costs, power generated, safety issues or suggestion, user response, and user comments will be contained in the monthly and final reports. Problems or complaints with hardware and/or operating procedures will be documented and summarized in the final report. Photos and video will be incorporated where appropriate. The final report will also provide an outline for future production, cost estimates for production units, and projected schedules for initial and full-rate production series. An investment cost recovery assessment will also be conducted and incorporated into the final report. Pros -- Compared to small-scale solar and wind applications, TEGS has the advantage that it is not dependant upon the cooperation of the weather. If the heating appliance to which TEGS is attached is in operation, then TEGS is generating electricity. Further, when TEGS is operating, the amount of generated power is a known quantity; in the case of wind or solar, the output is erratic and unpredictable. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 of 14 10/7/2009 Cons -- TEGS is a new system, and as such, its operation will initially be unfamiliar to the user. Therefore, it is necessary to train the user in the operation of the system. Also, the maintenance schedule could require revision as the system has not yet been fully tested in an Arctic environment like Ugashik. 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. At the time of the 2000 Census there were 35 total housing units in Ugashik and of those only 7 were occupied, with 28 being vacant and 26 of those being vacant due to seasonal use. No one at that time lived in group quarters in the community. The median age in Ugashik was 50.5 years, whereas the national age median was 35.3 years. The community has no public water, sewer, or electric services. 100% of the residents heat using kerosene. Most residents of Ugashik use septic systems and all homes have individual wells. Refuse collection is not available and the village council operates the landfill. Electricity is available from individual generators run off of diesel. There are no police in the community and the fire and rescue is provided by volunteers. Unlike nearly all other Alaskan Villages, Ugashik does not have and has never had a community grid. The community has always had individual power systems. Owned and operated by the individual. 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 residents of Ugashik currently rely heavily upon diesel-powered generators to provide electricity. The average home uses ~2,000 gallons of diesel fuel annually – 1/3 of this is used for heating; and the other 2/3 for electricity generation. Typically, the residents use their inside diesel heaters approximately eight (8) months of the year. During those eight months, TEGS can produce enough electricity to meet the average home consumption requirements, fueled by the waste heat from the heating appliance. This translates into a savings in excess of 800 gallons of heating fuel per year per home. At $5.00 a gallon, the monetary savings exceed $4,000 per year per TEGS unit installed. Therefore, the economic impact, and secondary benefits associated with using TEGS in remote locations, is significant. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Currently, 100% of the residents heat using kerosene. Most residents of Ugashik use septic systems and all homes have individual wells. Refuse collection is not available and the village council operates the landfill. Electricity is available from individual generators run off of diesel and or kerosene. There are no police in the community and the fire and rescue is provided by volunteers. All residents within the Ugashik desire to decrease the dependence on these methods of producing energy. There are currently over 250 villages across Alaska. Most of them use some form of diesel or fossil fuel for energy and heating. All or most would benefit from a system such as TEGS. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 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 See PERFORMANCE section of ‘Material Costs’ worksheet for energy potential. 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. Numerous occupied dwellings are available. Site owners will be offered an opportunity to participate in this project. 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 No permitting is required for this project. 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 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 14 10/7/2009 No adverse environmental or land use issues apply. 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 See MATERIAL COSTS and LABOR COSTS worksheets for cost breakdown. 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.) See ANNUAL O&M COSTS section of ‘Material Costs’ worksheet. 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 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. See MATERIAL COSTS and LABOR COSTS worksheets for cost breakdown. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 12 of 14 10/7/2009 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 Electricity is an expensive and indispensible commodity in most rural communities like Ugashik, Alaska. Therefore, BRI would like to introduce TEGS in the small community of Ugashik to demonstrate small-scale waste heat reclamation as a cost-effective source of electrical power generation. TEGS efficiently converts the surplus thermal energy from a heating appliance to electrical energy, thereby reducing the need for auxiliary power generation via diesel generators. During the heating season, TEGS produces very low cost electricity, but there are also a number of additional benefits:  Convenience. The generator is retrofit into existing indoor heat appliances, so transporting fuel over slick ground to a generator shed is not necessary.  Flexibility. TEGS operates from the excess thermal energy from the combustion taking place inside the heating appliance regardless of fuel type used by the heater.  Redundancy. TEGS provides backup power for existing power generation systems.  Near silent operation. Diesel generator noise is eliminated.  Low maintenance costs. Estimated time between overhauls is 12,000 hours -- even under heavy use, this typically equates to three (3) years between overhauls.  Rapid cost recovery. On average, each TEGS unit will pay for itself in just over three (3) years -- and, as TEGS production increases, the cost-per-system should decline. 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 required to continue operation  Commitment to reporting the savings and benefits The economy of Ugashik is based on subsistence and commercial fishing, although fish processing is also important to residents of the area, there is currently not a processing facility available for use within the community. Four residents of the community had commercial fishing permits and three residents had crew member licenses in the year 2000. Because of the nature of how the residents obtain their income and the uncertain nature of income over time it is imperative that Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 13 of 14 10/7/2009 factors such as cost of energy be taken into account. The cost of maintenance of this project will be undertaken by the individuals in Ugashik who benefit from the introduction of the TEGS. At the current time all residents use a combination of wind, solar, diesel fuel or kerosene to heat and provide electricity to their homes and community buildings. The addition of the TEGS will add another positive element to the energy sources available to those in Ugashik. All residents would be amiable to and committed to reporting the anticipated saving that the TEGS will bring to them. 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. Work will begin immediately upon approval of this grant. This project is not based upon any work completed by previous grants. 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 village of Ugashik is unincorporated and thus has no city or borough officials present in the community and no finances, although it is located in the Lake and Peninsula Borough. The native village corporation for Ugashik is the Alaska Peninsula Corporation. The Bristol Bay Native Corporation (BBNC) is the regional native corporation for the area. The Ugashik Traditional Council is the Bureau of Indian Affairs (BIA) federally recognized traditional council and tribe present in the village. The Bristol Bay Economic Development Corporation (BBEDC) is the local Community Development Quota (CDQ) group for the area and whose home office is in Dillingham. The regional native non-profit for the area is the Bristol Bay Native Association. All of these organizations have voiced approval for energy related projects such as this. (see attached letters of support) 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 We are requesting $217,170 in grant funding. BRI will contribute $7,500 in cash funds and UTV will also contribute $7,500 toward the project. UTV will consider additional investments as may be required for the success of the project. Because of the nature of this project and the impact it will have on the community in terms of renewable and sustainable energy use UTV will incorporate funds from EPA, DOE, BIA and other funding that UTV is receiving or may be eligible for in the future. 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 Alex P. Tatum Signature Title Tribal Manager Date November 8, 2009