HomeMy WebLinkAboutIndian River Hydroelectric Project City of Tenakee Springs App
GRANT APPLICATION
– FOR –
INDIAN RIVER HYDROELECTRIC PROJECT
DESIGN AND PERMITTING
NOVEMBER 10, 2009
– SUBMITTED TO –
ALASKA ENERGY AUTHORITY
RENEWABLE ENERGY GRANT PROGRAM – ROUND III
RFA #AEA-10-015
– SUBMITTED BY –
CITY OF TENAKEE SPRINGS, ALASKA
P.O. BOX 52
TENAKEE SPRINGS, AK 99841
Renewable Energy Fund Round
3
Grant Application
AEA 10-015 Application Page 1 of 21 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.do
c
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
Costworksheet
3.doc
Summary of Cost information that should be addressed
by applicants in preparing their application.
Grant Budget
Form
GrantBudget3.
doc
A detailed grant budget that includes a breakdown of
costs by milestone and a summary of funds available and
requested to complete the work for which funds are
being requested.
Grant Budget
Form
Instructions
GrantBudgetIn
structions3.pd
f
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.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 2 of 21 10/7/2009
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 3 of 21 10/7/2009
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
CITY OF TENAKEE SPRINGS
Type of Entity:
LOCAL GOVERNMENT
Mailing Address
P.O. BOX 52
TENAKEE SPRINGS, AK 99841
Physical Address
TENAKEE SPRINGS COMMUNITY BUILDING
TENAKEE AVENUE
Telephone
907-736-
2207
Fax
907-736-2207
Email
citytke@gmail.com
1.1 APPLICANT POINT OF CONTACT
Name
Arthur Bloom
Title
City Councilman, Hydropower Project Manager
Mailing Address
P.O. Box 42 Tenakee Springs, AK 99841
Telephone
907-736-
2222
Fax
907-736-2207
Email
artmbloom@gmail.com
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)
X 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 authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
1.2.5 We intend to own and operate any project that may be constructed with grant funds
for the benefit of the general public.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 4 of 21 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)
Indian River Hydroelectric 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.
The project would be located on the Indian River, located approximately one mile east of
Tenakee Springs. The project is located within sections 15 and 22 of township 47 south, range
63 east, of the Copper River Meridian.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels
X Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat
Pumps
Small Natural Gas
Heat Recovery from existing
sources
Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that
apply)
Reconnaissance X Design and Permitting
Feasibility Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
Replace diesel generation of electricity for the community of Tenakee Springs with renewable
hydroelectric power. The City of Tenakee Springs proposes to construct a hydroelectric project
on Indian River. This will be a low head, run-of-river plant displacing the use of 44,400 gallons
of diesel fuel. Design, engineering, and construction will involve the City of Tenakee Springs,
multiple state and federal agencies, private contractors, and the Alaska Energy Authority.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 5 of 21 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.)
The Tenakee Springs Electric Utility generators use approximately 33,000 gallons of diesel fuel
per year. Additional diesel offsets can be gained by replacing heating oil with electric heat. The
proposed project would help retain money within the community by stemming the outflow of
money for petroleum products and providing employment during construction and operation.
Additional Public Benefits would be less pollutants discharged into the air, less risk for
environmental liability, lower cost electricity especially for commercial entities which currently
pay very high rates, and potential expansion of economic base (fish processing and washeteria).
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.
Tenakee Springs requests $203,000 in grant funds with $26,000 in local matching funds to
complete this project.
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. $ 203,000
2.7.2 Other Funds to be provided (Project match) $ 26,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 229,000
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)
$ 2,711,000
PW of costs:
$2,355,500
2.7.5 Estimated Direct Financial Benefit (Savings)
(combined savings from avoided fuel for electricity
and space heating)
$ 262,848 per year
PW of benefits:
$5,600,000
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.)
Improve air quality,
encourage local
economic development,
stabilize local energy
costs, improve fish
passage on Indian
River.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 6 of 21 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.
Currently, the project manager is Arthur Bloom, an elected member of the city council and
employee of the city (Hydroelectric Project Manager). Tenakee Springs hired Polarconsult
Alaska, Inc. to complete an updated feasibility study, conceptual design, and start the permitting
process for the project. Under this contract, Polarconsult is providing project management
support and guidance. Additional project management support will be solicited from AEA.
AEA recently completed an Energy Infrastructure Project in Tenakee Springs consisting of a
Bulk Fuel Upgrade of fuel storage/handling facilities and Rural Power System Upgrade of new
power generation/distribution systems. The Conceptual Design Report (August 23, 2004)
included an analysis of the proposed hydroelectric project.
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.)
PERMITTING
· Land Authorizations November 2012
· Receive State Permits July 2011
· Agreement with Forest Service July 2011
· Completion of environmental studies March 2011
· Receive Federal Permits July 2011
DESIGN
· Final System Design May 2011
· Engineers Cost Estimate June 2011
· Updated financial/economic Analysis July 2011
· Final business and operational plans August 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.)
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 7 of 21 10/7/2009
The following milestones are proposed:
PERMITTING
· Land Authorizations
· Receive State Permits
· Agreement with Forest Service
· Completion of environmental studies
· Receive Federal Permits
DESIGN
· Final System Desig n
· Engineers Cost Estimate
· Updated financial/economic Analysis
· Final business and operational plans
ADMINISTRATION
· Monthly/quarterly reports as required by AEA
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 City of Tenakee will bring together the state and federal agencies having oversight of project
develo pment to identify potential problem areas and advance the permit authorizations necessary
for the project. Tenakee's contractor, Polarconsult has the capability to advance permits and
design of the project. If unique problems or issues arise in the permitting process, specialty
contractors may be retained to address these issues. Such contractors could be retained as a
subcontractor under Polarconsult or under direct contract to Tenakee Springs.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the
status.
The proposal assumes significant involvement in the entire project by the Authority. Tenakee's
Hydro Project Manager will provide quarterly or monthly reports to AEA as appropriate to
current project activities.
3.6 Project Risk
Discuss potential problems and how you would address them.
This project utilizes proven technology and construction methods. Any potential problems will
be resolved in the permitting process.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 8 of 21 10/7/2009
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.
Past studies (U.S Army COE 1984; Polarconsult, 1993) considered run-of-river hydroelectric
projects of 125 to 250 kW installed capacity. The recently completed feasibility study
(Polarconsult 2009) recommended a 120 kW installation. This configuration would have an 87%
capacity factor, providing 916,600 kWh of energy in an average water year. 392,100 kWh of this
energy would displace diesel-fired electrical generation, and 472,000 kWh would be available for
other uses, such as displacing diesel fuel used for space and water heating applications. The
balance is assumed to be directed to dump loads by the load governor without economic benefit.
These energy projections allow for at least 10 cfs of water to be continuously bypassed through
the existing fish ladder to allow for fish passage.
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.
Basic configuration of the existing system is 3 diesel electric generators; 2- 88kW peak and 1-
66kW peak capacity installed in 2007 by AEA Rural Power System Upgrade with new
switchgear. The existing system has an efficiency of about 12.97 kWh per gallon of fuel (based
on operations data from FY 2007 – 2009).
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 project would allow the existing diesel power plant to be shut down for much of the year.
During cold or dry periods, the diesels would run in parallel with or instead of the hydro. The
existing diesel plant would remain unchanged, and would provide a backup for periods when the
hydro is unavailable. This would significantly reduce O&M costs for the diesels and extend their
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 9 of 21 10/7/2009
useful life.
Less fuel usage for power generation will result in less air pollution and reduced potential hazards
from hydrocarbon storage and transport.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on
energy customers.
Electrical power is used in residential homes, commercial businesses, city buildings, streetlights,
and docks, and the REAA school building. The project could have a profound imp act by making
cheaper energy available and make the use of electrical energy for heating feasible. Lower and
more stable energy prices will tend to increase electrical demand on the system. Commercial
enterprises in Tenakee Springs particularly suffer under the current energy costs, because they are
not eligible for PCE subsidized rates. Lower energy costs will help to encourage commercial
activity in the community, which will tend to increase electrical demand.
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
· Run of the river hydroelectric project using penstock and cross flow turbine
· Installed capacity: 120 kW
· Capacity factor: 87%
· Annual generation: 916,600 kWh
· Anticipated barriers: None
· Integration concept: Switchgear will allow hydro to run solo or in parallel with existing
diesel plant. Load governor may be used to direct excess hydro energy to discretionary
loads (school, community building, other buildings).
· Delivery Method: New power line to tie hydro powerhouse into existing distribution grid.
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.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 10 of 21 10/7/2009
Project development on Indian River would occur on state land. The power line would cross a
combination of state and city land. The project is not located on disputed state land selections by
the University. Development would involve the City of Tenakee Springs, Forest Service, USDA
and State of Alaska. We expect the full cooperation of these entities based on previous
discussions.
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
· FERC finding of non-jurisdiction
· Coastal Zone Management Consistency Review Compliance/DCOM permits
· DNR water rights
· DNR easements / leases easements,
· ADF&G fish habitat permit,
· Forest Service permits (fish ladder)
· Corps of Engineers wetlands permits
Discussions with DNR indicate land leases may require 3 years. Other permits could be
completed in one year unless agencies require extensive resource studies. The City will discuss
with DNR ways to expedite the leasing process so this beneficial project is not unduly delayed.
Project energy estimates include the USFS's recommended 10 cfs in-stream flow reservation.
USFS is aware of this project and supports it. Unforeseen requirements or conditions pertaining
to fish passage on Indian River could present a barrier to the project, but these are considered
unlikely.
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
The bypass reach of Indian River is part of an enhanced fish passage corridor to upstream habitat
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 11 of 21 10/7/2009
on Indian River. USFS is aware of and supports this project. Tenakee will coordinate design of
the project to protect the function of existing fish passage structures. No other unique
environmental conditions or impacts apply for this project.
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
Total project cost through construction: $2,711,000
Grant funding requested: $203,000
Local match, as cash and in-kind services: $26,000
Estimated capital cost of the project: $2,382,000
Estimated remaining development cost (permitting, design): $229,000
(Cost estimates based on 2009 Polarconsult Feasibility Study)
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.)
Total annual O&M costs for the project are $22,200. This includes estimated savings of $7,700
from avoided O&M costs on the diesel plant. O&M costs will be paid through the utility's
electric rates.
(Cost estimates from 2009 Polarconsult Feasibility Study)
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
· Identification of potential power buyer(s)/customer(s)
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 12 of 21 10/7/2009
· Potential power purchase/sales price - at a minimum indicate a price range
· Proposed rate of return from grant-funded project
The city electric utility will own the project. Power will be sold to utility customers.
With the requested grant, electric rates in the community would decrease from the existing rates
of $0.55 to 0.65 per kWh to about $0.20 to 30 per kWh. This reduced rate would cover all utility
expenses, such as operation, maintenance, repair, general, and administrative costs. These rates
do not consider PCE subsidies to residential / community accounts.
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.
Sources of data: City of Tenakee Electric Utility records, Polarconsult reports (1993 and 2009),
1984 Corps of Engineers report, AEA Conceptual Design report.
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
Annual fuel displacement / Lifetime (50-year) fuel displacement:
- 31,400 gallons for electrical generation (1,570,000 gallons over life)
- 13,000 gallons for space/water heating (650,000 gallons over life)
Annual Revenue/Savings (using $5.81 per gallon fuel cost in 2010 and mid range EIA fuel
projections developed by AEA)
- $182,400 avoided fuel (electricity)
- $75,500 avoided fuel (heating)
Non-economic benefits of the project to Alaskans include:
- reduced air pollution and noise pollution within Tenakee Springs – improves quality of life and
health of resident s, and makes Tenakee a more desirable place to live.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 13 of 21 10/7/2009
- Stable and reasonable energy costs will also make Tenakee a more desirable place to live, and
will help to attract local economic activity such as tourism, fishing, etc. The hydro combined
with the ho t springs will bolster the sustainability of the community for the long term.
Commercial enterprises in Tenakee in particular will benefit from lower energy costs. Lower
energy costs will make local businesses such as stores, restaurants, and lodges mo re competitive
and will increase Tenakee's sustainability and long term viability as a community. Tenakee has
struggled in recent years to attract and retain working families with children to keep the local
school open. Affordable energy, and the local economic activity it will encourage and support,
will help considerably in our long term efforts to help the community thrive.
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 hydro would be operated by the city's existing electric utility.
Maintenance and operations of the hydro would be paid through electricity rates.
No operational issues are expected.
Operating costs would include continuing (decreased) O&M costs for the diesel plant, and costs to
operate and maintain the hydro. Our consultant estimated $15,200 annually for hydro O&M and
$10,800 annually for hydro repair and replacement (R&R). The R&R budget is an annualized
value over the 50-year life of the project. Annual R&R costs would be lower in the early years of
the project and higher in the later years of the project. $3,900 per year is budgeted for state lease
royalties.
The City of Tenakee Springs will report the savings and benefits of this project to AEA for the life
of the 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
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 14 of 21 10/7/2009
have been able to meet the requirements of previous grants.
Tenakee paid for a Feasibility study in 1993 to evaluate the project. More recently, development
work on the hydro is currently underway with a Denali Commission grant managed by AEA. The
ongoing phase of the project includes the recently completed feasibility study, preliminary design,
and starting the permit process for the project.
Tenakee anticipates that the current phase of the project will be completed by the time the
requested FY 2011 funds are available. The requested grant will be put to use immediately to
continue advancing the project through design and permitting in 2010-2011 and through
construction in 2012 - 2013.
Tenakee is fully meeting the requirements of the grant for the current work.
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 community of Tenakee Springs has been supportive of this project since the Polarconsult
study in 1993 showed its economic viability. Several city council resolutions have been passed
over the years affirming the city’s desire to see the project move towards construction. Given the
short time frame for making this application, it has not been possible to poll the residents for
additional support, but the opportunity exists for the city to put up for sale city owned land to
provide matching funds. The city previously did this to provide financial support of the Fuel
Department.
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.
Investment to Date:
- $10,000 in city funds for 1993 study
- City has expended in-kind services over the past 15 years to advance the project – discussions
with state/federal agencies, etc.
- Approximately $100,000 for 2009 feasibility study, preliminary design, and permitting (under
way) (combination of city funds and Denali Commission grant)
Requested Grant Funds
Total project cost through construction: $2,711,000
Grant funding requested: $203,000
Local match, as cash and in-kind services: $26,000
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 15 of 21 10/7/2009
SECTION 10 – 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 Arthur Bloom
Signature
Title Hydroelectric Project Manager
Date November 9, 2009
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 16 of 21 10/7/2009
ATTACHMENT A – RESUMES
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 17 of 21 10/7/2009
ATTACHMENT B – COST WORKSHEET
Renewable Energy Fund
Round 3
Project Cost/Benefit
Worksheet
RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09
Please note that some fields might not be applicable for all technologies or
all project phases. The level of information detail varies according to phase
requirements.
1. Renewable Energy Source: Indian River Hydroelectric Project
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Estimated annual average resource
availability.
916,600 kWh/year for average water year
Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel)
2. Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank)
i. Number of generators/boilers/other 3
ii. Rated capacity of
generators/boilers/other
88, 88, 66 kW (peak)
iii. Generator/boilers/other type Diesel generators
iv. Age of generators/boilers/other All are 2 years old
v. Efficiency of generators/boilers/other combined efficiency is 13 kWh/gal
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $20,000 (estimated)
ii. Annual O&M cost for non-
labor
$5,000 (estimated)
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part
of the Railbelt grid, leave this section blank)
i. Electricity [kWh] 430,000 kWh
ii. Fuel usage
Diesel
[gal]
32,500 gal
Other none
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
Renewable Energy Fund
Round 3
Project Cost/Benefit
Worksheet
RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09
iii. Peak Load 120 kW
iv. Average Load 50 kW
v. Minimum Load 19 kW
vi. Efficiency 12.97 kwh/gal (PCE data from 2007-2009)
vii. Future trends Future load growth without hydro is flat. With hydro, will likely
increase.
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 60,000 gal (estimate)
ii. Electricity [kWh] Unknown (any usage is included in c.i)
iii. Propane [gal or MMBtu] zero
iv. Coal [tons or MMBtu] zero
v. Wood [cords, green tons, dry
tons]
24 cords/year (estimate)
vi. Other zero
3. Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kWh or MMBtu/hr]
120 kW installed capacity – run of river hydro
87% capacity factor
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 916,600 kWh/year
ii.Heat [MMBtu] -
c) Proposed Annual fuel Usage (fill in as applicable)
i. Propane [gal or MMBtu] 0
ii. Coal [tons or MMBtu] 0
iii. Wood [cords, green tons, dry
tons]
0
iv. Other 0
4. Project Cost
a) Total capital cost of new system $2,711,000
Renewable Energy Fund
Round 3
Project Cost/Benefit
Worksheet
RFA AEA10-015 Application Cost Worksheet Page 3 10-7-09
b) Development cost $ 329,000 (includes $100,000 already
committed)
c) Annual O&M cost of new system $ 22,200
d) Annual fuel cost Zero
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 31,400 gallons
ii. Heat 13,000 gallons
iii. Transportation N/A
b) Price of displaced fuel $ 5.81 / gal (2011 projection)
c) Other economic benefits Embedded in fuel cost.
d) Amount of Alaska public
benefits
$0 in quantifiable economic terms
6. Power Purchase/Sales Price
a) Price for power purchase/sale Estimated utility rate to customers is $0.20 to
.30/kWh. This includes revenue requirements for
all utility costs.
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio With 50 year life, $5,600,000 / 2,355,500 = 2.38
Payback $2,590,000 / 252,200 = 10.3 years
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 18 of 21 10/7/2009
ATTACHMENT C – GRANT BUDGET FORM
Renewable Energy Fund Grant Round III Grant Budget Form
Indian River Hydroelectric Project
City of Tenakee Springs
10-7-09
RE- Fund Grantee Matching
Source of Matching
Funds:
Grant Funds Funds
Cash/In-kind/Federal
Grants/Other State
Grants/Other
1. Permitting
1.1 Land use, right of way, easement approvals Nov-12 $30,000 $0 -$30,000
1.2 Other State Permit Approvals Jul-11 $21,000 $0 -$21,000
1.3 USDA FS Agreements Jul-11 $10,000 $0 -$10,000
1.4 Environmental Studies (if any)Mar-11 $14,000 $0 -$14,000
1.5 Federal Permits Jul-11 $10,000 $0 -$10,000
2. Design
2.1 Final System Design May-11 $92,000 $0 -$92,000
2.2 Engineers Cost Estimate Jun-11 $11,000 $0 -$11,000
2.3 Updated economic and financial analysis Jul-11 $10,000 $0 -$10,000
2.4 Final business plan and operatational plan Aug-11 $5,000 $0 -$5,000
3. Project Administration and Management Nov-12 $0 $26,000 Cash / In-Kind Services $26,000
TOTALS $203,000 $26,000 $229,000
Direct Labor & Benefits $0 $26,000 Cash / In-Kind Services $26,000
Travel & Per Diem $0 $0 -$0
Equipment $0 $0 -$0
Materials & Supplies $0 $0 -$0
Contractual Services $203,000 $0 -$203,000
Construction Services $0 $0 -$0
Other $0 $0 -$0
TOTALS $203,000 $26,000 $229,000
Budget Categories:
Milestone or Task
Anticipated
Completion Date TOTALS
Applications should include a separate worksheet for each project phase (reconnaissance, feasibility, design permitting, and construction)
Add additional pages as needed.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 19 of 21 10/7/2009
ATTACHMENT D – LOCAL SUPPORT LETTERS
See narrative at Section 8 for discussion of local support.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 20 of 21 10/7/2009
ATTACHMENT E – ELECTRONIC VERSION OF APPLICATION
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 21 of 21 10/7/2009
ATTACHMENT F – GOVERNING BODY RESOLUTION
The attached governing body resolution is on the agenda for the next meeting of the
Tenakee Springs City Council, scheduled for November 19, 2009. The executed
resolution will be provided to AEA by December 1, 2009.
CITY OF TENAKEE SPRINGS
RESOLUTION [###]
AUTHORIZATION FOR AEA GRANT APPLICATION
WHEREAS, the City of Tenakee Springs, Alaska (the City) desires assistance in funding
the design, permitting, and construction of a hydroelectric project on Indian River; and
WHEREAS, the Alaska Energy Authority (AEA) is accepting grant applications for the
fiscal year 2011 funding round of the Renewable Energy Grant Program, due on November
10, 2009; and
WHEREAS, the City qualifies to receive funding from the Grants.
NOW THEREFORE, the City Council of the City of Tenakee Springs, Alaska (the
Council) agrees and affirms the following:
1. The Council commits to providing the matching resources for the project as
specified in the grant application, and
2. The Council hereby authorizes Arthur Bloom to sign the grant application, and
to commit the City to the obligations under the grant,
3. The Council designates Arthur Bloom as the point of contact to represent the
City for purposes of the grant application,
4. The Council certifies t hat the City is in compliance with applicable federal, state
and local laws including existing credit and federal tax obligations.
[Signatures]
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 22 of 22 10/7/2009
ATTACHMENT H – MAPS
FOLLOWING MAPS ARE INCLUDED
- LOCATION MAP
- VICINITY MAP
-PROJECT MAP