HomeMy WebLinkAboutMSB Solar and Wind Potential Matanuska-Susitna Borough Application
Renewable Energy Fund Round 3
Grant Application
AEA 10-015 Application Page 1 of 13 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
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Matanuska-Susitna Borough
Type of Entity: Local Government
Mailing Address
350 E. Dahlia Ave Palmer, AK 99645
Physical Address
SAME
Telephone
745-9525
Fax
745-9876
Email
pgraham@matsugov.us
1.1 APPLICANT POINT OF CONTACT
Name
Emerson Krueger
Title
Planner
Mailing Address
350 E Dahlia Ave
Palmer, AK 99645
Telephone
745-9526
Fax
745-9876
Email
ekrueger@matsugov.us
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
X A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing a uthority. If the
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public.
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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.
MSB Solar and Wind Potential
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.
Public facility locations (schools, fire stations, and libraries) throughout the Matanuska-Susitna
Borough. Tables and maps from draft MSB Public Facilities Plan Revision are attached for site
specific locations.
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
X Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
X Reconnaissance Design and Permitting
X Feasibility Construction and Commissioning
X Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The Matanuska-Susitna Borough proposes to conduct a renewable energy reconnaissance study for the
existing and planned public facilities within the borough to evaluate options to decrease energy costs and
reduce dependence on fossil fuels. A reconnaissance report will summarize the assessment and
findings. This project will be administered and managed by the MSB and will be conducted by a
consultant chosen by the MSB. Locations shown to have significant renewable energy potential will
undergo a feasibility study and include a conceptual design for identified renewable energy resources.
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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 a minimum, the Reconnaissance will include the following tasks:
Gather all resource studies that now exist on renewable energy projects within the
Borough boundary.
Research and list other studies that may benefit the communities (with methods and
costs).
Describe existing power and heating systems in each of the facilities, including detailed
load information and other information necessary to continue into feasibility and
conceptual design phase.
Describe fuel delivery methods and, if appropriate, examine other options.
Describe renewable energy technologies available specific to each facility.
Ascertain and document the required operations and maintenance of renewable resource
projects.
Ascertain and document the community and utility support and interest in specific
renewable resource development.
Describe each of the proposed systems’ costs and benefits.
Quantify the potential energy market and sales rates for each facility.
Identify land (with landowners) needed for each of the proposed systems.
Identify anticipated or required permits with timelines and conduct initial environmental
screening for each project with potential barriers or problems noted.
Provide an economic analysis of alternatives for each facility and make recommendations
for future project development work, in rank order per facility.
With the completion of this reconnaissance report, the Borough will be able to proceed into the
Feasibility and Conceptual Design Phase. The report will move each facility closer to realizing
decreased energy costs and reduced dependence on fossil fuel for heat and electrical needs.
The public is aware of global warming and the environment. Organizations that endorse
sustainability demonstrate they are taking proactive steps towards environmental preservation
and are serious about renewable energy and are taking steps toward energy independence.
The borough’s energy efficiency and conservation strategy includes the following goals:
- Energy (electricity, heat): a 20% increase in the amount of renewable energy usage and a 20%
increase in energy efficiency by 2020.
This project would help the borough to make progress in achieving this goal.
Success of this project will lead to the borough retrofitting existing public facilities with solar
and wind energy systems.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of fun ds, and the nature and source
of other contributions to the project.
The estimated cost of this project is $322,283 including $22,283 of in-kind work by Borough
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staff. We are requesting $135,000 from the Alaska Energy Authority’s Renewable Energy Fund
and we are providing $13,826 in in-kind assistance for the reconnaissance study. We are
requesting an additional $165,000 and we are providing $8,460 as in-kind assistance for the
feasibility study and conceptual design. The project will be managed and the grant administered
by Borough staff.
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. $300,000
2.7.2 Other Funds to be provided (Project match) $22,283
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $322,283
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)
$322,283 + unknown
construction costs
2.7.5 Estimated Direct Financial Benefit (Savings) $Unknown
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.)
$ Unknown
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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.
Christine Nelson, MSB Planning and Land Use Director. We do not expect project management
assistance will be required from the AEA or another government entity.
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.)
TASK RESPONSIBITY
Month One Write and advertise the request for proposals MSB Planning Director
Month Two Review proposals and select contractor MSB Staff
Month Two Contractor begins work Contractor
Month Four First Progress Report Due Contractor
Month Six Second Progress Report Due Contractor
Month Eight Draft Report Contractor
Month Eight MSB Public Works Comments Due MSB Planning Director
Month Nine Final Report Due Contractor
Month Nine
Award Optional Task for Feasibility Study and
Conceptual Design MSB Planning Director
Month 12
Draft Feasibility Study and Conceptual Design
Due Contractor
Month 13 MSB Public Works Comments Due MSB Planning Director
Month 14 Final Report Due Contractor
Month 15 Project Close-out MSB Planning Director
3.3 Project Milestones
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Define key tasks and decision points in your project and a schedule for achieving them. The
Milestones must also be included on your budget worksheet to demonstrate how you propose to
manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)
The key tasks are listed above but include a contract in place by the end of the second month of
the project with a consultant in the field of alternative, renewable energy resources. We expect to
have a final reconnaissance report within nine months of grant award in order to move identified
projects forward into the feasibility and conceptual design phase.
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.
The MSB Planning Director will write and advertise in the Anchorage Daily News a request for
proposals (RFP) for a Renewable Energy Reconnaissance Report for borough public facilities.
The selection process will be described in further detail within the RFP but will include points for
the contractor’s demonstrated understanding the technical problems, technological solutions and
the understanding of the unique challenges of the Borough. Other criteria will include the
contractor’s specific work plan and schedule. The most important criteria will be the experience
and knowledge of the contractor and associated personnel with regard to energy-related planning,
environmental issues and permitting. Points will be awarded based on the proposers’ extent of
experience working on energy issues in other small, remote communities. The review committee
will also look at the proposers’ detailed cost proposal which must be within the budget and be a
reasonable representation of the work plan. The feasibility study and conceptual design will be
included as optional tasks in the contract subject to completion of the reconnaissance study.
Resumes of MSB project personnel – Planning Director and Planner II -- are attached.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The Planning Director will communicate with the Alaska Energy Authority through quarterly
progress and financial reports by email to the Authority’s Project Manager. The will summarize
the progress made on grant tasks during the month and identify any difficulties in meeting goals
and deadlines.
3.6 Project Risk
Discuss potential problems and how you would address them.
No significant risks have been identified for the proposed project.
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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.
Insolation estimates for south central Alaska indicate a lack of sufficient solar radiation mid-
winter to provide significant heating input. Sufficient solar radiation is estimated to be present
eight to nine months of the year.
The U.S. Department of Energy wind classifications for the borough range from poor to superb.
Inadequate data for specific locations within the borough is one driving force for the
reconnaissance study.
Hydroelectric power is already in use in the Borough. Localized potential hydro resources have
been not been identified near borough public facilities.
Alternative heating and electrical sources are predominately natural gas. Emissions from burning
natural gas are the lowest when compared to other fossil fuels. There is a predicted shortage of
natural gas in Southcentral Alaska that may significantly increase the cost of natural gas as well
as limit its availability.
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.
The existing energy systems consist largely of the Railbelt electrical grid with power purchased
from Matanuska Electric Association and natural gas purchased from Enstar. Several outlying
facilities are not connected to the electrical grid and are beyond the natural gas service area.
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 resour ces.
All existing public facilities with the borough rely on either natural gas for heating and electricity
or on diesel fuel. Determining the renewable energy potential for public facilities will result in
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construction of feasible renewable energy systems both for electrical generation and heating.
Renewable energy systems installed at public facilities will have high public visibility and will
result in an increased awareness of renewable energy potential and demand.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
A majority of the borough population rely on natural gas for heating and electricity. People
outside the services areas for natural gas and electricity predominately rely on heating oil for heat
and diesel generators for electricity. Public facilities are located in many of the populated areas of
the borough. Evaluation of wind and solar energy potential for public facilities will likely be
applicable to nearby residential and commercial sites. This project will identify renewable
resources for the borough’s public facilities and will bring residents and business owners closer to
significantly reduced utility bills.
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
No renewable energy system has been identified as the preferred alternative. This project will
help the borough determine which renewable resources to develop for each public facility
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.
Borough public facilities are located on borough-owned land.
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
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Anticipated permitting timeline
Identify and discussion of potential barriers
This issue will be addressed in this Reconnaissance Report.
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
This issue will be addressed in this Reconnaissance Report.
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
This issue will be addressed in this Reconnaissance Report.
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
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communities they serve.)
This issue will be addressed in this Reconnaissance Report.
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
This issue will be addressed in this Reconnaissance Report.
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.
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
This issue will be addressed in this Reconnaissance Report.
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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
Completion of the reconnaissance and feasibility studies will be coordinated with concurrent
energy audits of the public facilities. The outcome will be identification of renewable energy
projects for specific public facilities including estimates of the energy savings and greenhouse gas
emission reductions of each 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.
MSB management, planning, and public works staff have been briefed on the projects’ purpose
desired outcome. Staff are prepared to begin project upon availability of funds.
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 Borough has coordinated with the Renewable Energy Alaska Project on an energy efficiency
and conservation public awareness project. No significant public opposition is anticipated.
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.
MSB is requesting $300,000. MSB is prepared to commit sufficient staff time as an in-kind
match to ensure the success and subsequent implementation of the project.
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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 John Duffy
Signature
Title Matanuska-Susitna Borough Manager
Date November 9, 2009