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HomeMy WebLinkAboutValdez Fisheries Waste Energy Grant Application Renewable Energy III Renewable Energy Fund Round 3 Grant Application AEA 10-015 Application Page 1 of 18 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 18 10/7/2009 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Valdez Fisheries Development Association Type of Entity: Private Non-Profit Corporation Mailing Address Box 125, Valdez, Alaska 99686 Physical Address 1815 Mineral Creek Loop Road Telephone 835-4874 Fax (907) 835-4831 Email Vfdalaura@valdezfisheries.com 1.1 APPLICANT POINT OF CONTACT Name Jason Wells Title Executive Director Mailing Address Box 125, Valdez, Alaska 99686 Telephone 835-4874 Fax (907) 835-4831 Email vfdalaura@valdezfisheries.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) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or x An independent power producer in accordance with 3 AAC 107.695 (a) (1), or A local government, or A governmental entity (which includes tribal councils and housing authorities); Yesxx 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 ) Yesxx 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. Yesxx 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.) Yesxx 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 18 10/7/2009 SECTION 2 – PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title – (Provide a 4 to 5 word title for your project) Type in your answer here and follow same format for rest of the application. Waste Energy Powered Absorption Refrigeration Unit 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. Mile 2, Dayville Road, Valdez, Alaska 99686 All Prince William Sound Communities will Benefit. 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 Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable x Other (Describe)Waste Energy Recovery 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. The project, located in Valdez, Alaska, will capture waste heat generated at the Petro Star Refinery. Waste heat will be collected by a shell and tube glycol medium recovery system. The medium will drive two technologies operating in a series. Ammonia absorption technology will create cooling for a 45 million pound, -20degree cold storage facility. An organic Rankin Cycle Generator will use the medium once it has exited the ammonia absorption system to create 600kw’s of power which will be used to operate the Cold Storage facility as well as the Solomon Gulch Hatchery. The final benefit will be to use the cold cycle of the generator to create a salmon rearing facility. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 4 of 18 10/7/2009 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 of 18 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.) Savings in Electrical Costs $15,800,000 For the Life of the Project Cost Savings at the Hatchery $7,500,000 For the Life of the Project Total $23,300,000 For the Life of the Project Savings in Freight Costs to the Processors $2,250,000 Annually Jobs created in value adding (value) $8,000,000 Annually Salmon Rearing Facility community benefits $4,000,000 Annually The project is a utilization of waste heat which is now being exhausted to the atmosphere. The heat from the Petro Star Refinery would be captured by a shell and tube heat exchanger and transported via a glycol medium to the project site. Petro Star currently exhausts 22.5 MM BTU’s/ hour of usable heat. The glycol at a temperature of 210 degrees F. would first run through two 200 ton ammonia absorption units which would generate enough cooling for 45 million pounds of -20 degree cold storage capacity. The glycol would exit the ammonia skid at 176 degrees and run thru two Purecycle 225 power generators. Once the glycol exits the generator it would flow thru the heat exchanger and return to the refinery. The last heat exchanger would provide heat to either heat a building if needed or keep ice from penetrating the ground under the freezer units. Cold water for the low temperature side of the generators would be provided from surface water originating from Abercrombie Creek. Once the water had cooled the generator it would be mixed with ambient water to provide 50 degree F. fresh water for a rearing facility for salmon 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. VFDA has been working on this project since March of 2003. We have paid for a Conceptual Engineering Letter (Alaska Anvil). Conceptual Engineering Report (Alaskan Anvil). A Economic Feasibility Study ( McDowell Group). Business Plan (McDowell Group). A Fatal Flaw Analysis ( Energy Concepts) and a Project Document Consolidation Report (McDowell Group). VFDA has spent or contracted for over $125,000 on progressing this project. Valdez Fisheries Development is requesting $1,021,287 in Grant Funds Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 18 10/7/2009 2.6 COST AND BENEFIT SUMARY See Above 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. $1,021,287 2.7.2 Other Funds to be provided (Project match) $350,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $1,376,287 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) $36,016,000 2.7.5 Estimated Direct Financial Benefit (Savings) $23,300,000 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.) $ 14,250,000 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 7 of 18 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. The project oversight will be conducted by Jason Wells, CEO for Valdez Fisheries. The project will be managed by Ken Morgan, VFDA’s current project manager. Mr. Morgan has worked for VFDA for 21 years and currently manages all our construction and maintenance projects. In addition to Mr. Morgan, we will use a qualified flow engineering firm, hopefully one familiar with the Petro Star Refinery. Energy Concepts engineers will coordinate their engineering expertise in ammonia absorption with Alaska Anvil as will UTC Power with their expertise in low temperature power generation. VFDA will hire a Project Engineer to work facilitate between VFDA and project contractors. 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.) The proposed work that will be funded by this grant will be the final design of the proposed waste energy recovery and utilization system. The individual components of the project include the following: (1) The collection of the maximum usable waste heat from the refinery. (2) The transportation of that energy to the project site. (3) The utilization of the waste energy as refrigeration using an ammonia absorption system. (4) The utilization of the waste heat down- stream from the ammonia absorption system in an Organic Rankin Cycle electric generator. The product of this work will result in the final design of an integrated system that maximizes the use of the waste energy and maximizes the production of -20 degree F. cold storage facility and electricity. 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.) The project milestones will include the following: (1) Prepare an RFP to identify a process engineering firm to design the waste heat recovery and transport system. This firm will oversee the project and coordinate with systems specialty engineers. Further, we will bid the project and select the most qualified firm. We anticipate needing some contractual services to help with Milestone One. We anticipate RFP’s to be ready within 60 days of the grant award notification. (2) We will review RFP’s, select the best qualified firm and award the contract. Again, we will have professional assistance in evaluating the RFP’s. We anticipate completion of this task within 60 days. (3) The third milestone will be to award a contract for the final design for the integrated system described in 3.2 Project Schedule above. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 of 18 10/7/2009 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. VFDA will solicit and contract a qualified Alaskan Engineering firm to develop specifications and coordination with all technical engineers. Due to the technology employed in the project, VFDA will sole source the ammonia absorption skills from Energy Concepts Company and the Organic Rankin Cycle generators from United Technologies Company (UTC). All other materials will be the responsibility of the contractor. Key Personnel Randy Maag Refinery Manager Petro Star Refinery Donald Erickson Engineer Energy Concepts Bruce Brederman Engineer United Technologies A yet to be determined engineering firm. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status VFDA will use its current corporate structure to oversee the project. Mr. Ken Morgan will be the key corporate contact between AEA and the project. He will keep the corporate leadership apprised of the project progress. He will in turn have a project engineer who will report to him and who will oversee the contractor’s progress, change orders and specification compliance. The contractor will invoice VFDA for work completed. Once the work has been reviewed by the project engineer and project manager, VFDA’s accounts payable will submit the invoices to AEA for payment. VFDA’s project manager will submit quarterly progress reports to AEA via e- mail. 3.6 Project Risk Discuss potential problems and how you would address them. VFDA foresees the following potential risks: Solutions 1. Coordinating heat recovery with the refinery Early coordination and lead time 2. The project having an effect on the refinery Careful final engineering 3. Refinery Shutdowns Backup Heat Source 4. Power Disruptions Hook up to CVEA 5. Delivery Schedule for key components Early ordering 6. Material Shortages Develop key components strategy 7. Rising Material Costs Develop staged construction Fall back position 8. Flammability of ammonia Develop handling & Fire system Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 of 18 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. Petro Star Refinery is currently discharging 43 mm BTU/hour into the atmosphere. This is low temperature waste heat at 215 degrees F. to 218 degrees F. Approximately 20.5 mm BTU/hour is hot enough to be usable to drive and ammonia absorption system as well as low temperature electric generators. The project will use a glycol exchange medium to transport energy to the ammonia absorption skid. Temperatures into the skid will be 210 degrees F. and discharge at 176 degrees F. The glycol discharging from the absorption skid will be about 800 gpm at 176 degrees F. This is enough energy to create approximately 630 Kilowatts of power which will be used to reduce the power costs at the cold storage facility. Excess power will be used to reduce the overhead costs at VFDA’s Solomon Gulch Hatchery. 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. VFDA’s hatchery is currently connected to CVEA’s power grid. The cold storage facility will be connected to the CVEA power grid as a back-up to the low heat generator. 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 Solomon Gulch Hatchery currently uses about 800,000 Kwh/year. Average consumption for the ammonia absorption driven cold storage facility is estimated at 278 Kw when running at full capacity. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 of 18 10/7/2009 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. It is envisioned that VFDA will consume all of the power produced. However, the public will receive 100% of the benefit because of VFDA’s corporate purpose and vision. 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 Technology to be employed in the project will be the standard ammonia absorption technology, however, due to the low temperature; a three pressure (double lift) cycle has been selected. Technology to be employed for the power generation will be an Organic Rankin Cycle Generator turbine developed by UTC (PureCycle model 225). 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. There are 18 acres available for the project across the highway from the Petro Star Refinery. VFDA has been in negotiations with the current owners. VFDA is waiting to come to an agreeable price for the acreage. VFDA will purchase the property free and clear. Petro Star currently has a right of way across the site which delivers crude oil from the Trans Alaska Pipeline. While we will have access and use of the property, it is not clear whether we will have our own pipeline corridor across the highway or will use Petro Star’s access. 4.3.3 Permits Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 18 10/7/2009 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 The following permits are anticipated to be needed for the project: 1. City of Valdez Coastal Zoning Permit 2. City of Valdez Building Permit 3. State of Alaska Fire Marshals Review and Permit 4. State of Alaska Right of Way encroachment Permit 5. State of Alaska Coastal Zoning Review The City of Valdez permits should be rather straight forward and be available with 45 days after the State Fire Marshal reviews and signs off on the project. There may be a delay with the Fire Marshals review because of the hazardous nature of the ammonia system and the potential fire danger. All permits will require final design drawings to proceed. 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 1. No threatened or endangered species are known on the site 2. Habitat issues. Site drainage during construction could be an issue because there is an anadromous stream bordering the site to the east. Soil containment will be required by the contractor. The water supply for the cold water side of the low heat turbine might affect the anadromous stream. This issue will be addressed in the final design. 3. Wetlands. The east end of the building site borders an anadromous stream. Some portion of the east end of the project site might not be buildable 4. Archeological. The site was cleared in the 1970’s and again in 1989 during the Exxon Valdez Oil Spill. No archeological or historical resources are anticipated, but the site will be appraised by the State of Alaska. 5. Land development constraints. No residential area is located within 2 miles. The site is heavy industrial. No constraints are anticipated. 6. Telecommunication interference. No interferences are anticipated, however there are several fiber optic cables are located between the building site and the Petro Star Refinery. These will be located and avoided prior to construction. 7. Aviation considerations. The building site is very rarely transited by aircraft. Alyeska flies helicopters down the Pipeline but the project profile is too low to be a problem. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 12 of 18 10/7/2009 8. Visual, aesthetic impact. The site is located in an industrial area across the roadway from a petroleum refinery. 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 The total costs for the overall project is $36,016,000 according to the “Conceptual Engineering Report” by Alaska Anvil (9/9/03). VFDA is asking for a grant in the amount of $1,021,000 for the current phase which includes Final System Design (Heat collection to the ORC). To date VFDA has contributed $150,000 to the preliminary work and we anticipate the land purchase to be about $250,000. VFDA will leverage the AEA grant to obtain Federal and State grants for the final project design and the construction phases which will include the glycol delivery line, heat collector, ammonia absorption skid, Organic Rankine Cycle Generator, freight, buildings and four warehouses. Funding to complete the facility to the 45 million pound capacity will come from loans and fees for the use of the facility. The ammonia skid system is estimated to cost about $2,700,000 installed. The Organic Rankine Cycle Generator is currently an off the shelf item. Some engineering may be required for the ammonia absorption skid. 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.) Enclosed please find a five-year Annual Operating Expense (Appendix #1) and a five year Performa as prepared by McDowell Group in May 2004. Several changes have occurred which improve the Performa enclosed. (A) Due to VFDA’s 501(C) 3 tax status there will be no real property taxes; (B) The low temperature turbine will reduce power costs to zero. 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 13 of 18 10/7/2009 Potential power purchase/sales price - at a minimum indicate a price range Proposed rate of return from grant-funded project No Purchase/Sale of power is anticipated 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. Numbers for the Budget form were derived from Cost estimates in the Alaska Anvil Conceptual Engineering Report and our estimates of time dedicated by VFDA’s Project Manager. See Attachment. 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 Valdez Fisheries Development Association is a 502(c) (3) not for profit corporation. The purpose for formation of the corporation is stated in the Articles of Incorporation. “The purpose and purposes for which it is formed are to raise and propagate fish and develop renewable fisheries resources for the benefit of sport fishermen, commercial fishermen, fish processors, tourists and all businesses dependent upon the fishing industry in Alaska”. To this end, all of the benefits and expense savings which VFDA receives or produces inures to the benefit of all Alaskans. VFDA has developed a very successful hatchery program which currently returns 60-100 million pounds of fish annually to Port Valdez (see appendix #2). If Alaska is going to get the full benefit of these resources, we need to be doing the value adding to the raw resource. Alaska has never had the ability to hold its raw product instate so that value adding could provide winter jobs for Alaskans. The problem has always been that cold storage operations were too expensive due to the high cost of power. This project provides power costs at nearly a nearly zero cost. The processing industry in Alaska processes fish during a very short season and under great time constraints. This results in the product being minimally processed and quickly shipped outside. The processor must ship parts of the fish (skin, bones, and fins) which have no sales value. All of Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 14 of 18 10/7/2009 the unused parts must still be shipped to south at $.17/lb. If the value adding were performed in Alaska, the processors would cut the shipping costs in half as about 50% of a headed/gutted salmon is usable. Further, if a processor doesn’t pre-sell his pack, he must borrow money for freight at current capital rates. If processors could hold production in Alaska, they could charge the freight to the purchaser of his product on a net 30 day basis. Alaskan processors particularly small freezing facilities would greatly benefit from this project. This project will also provide a repository in Alaska for raw product. Available raw product could spin off many small businesses in Alaska which could create specialty products during the winter months. This project will also provide a warm water source for the rearing of sport fish for the Prince William Sound sports fish industry. It is anticipated that at full capacity the facility would employ about 200 full time rural employees. Aside from the benefits to commercial and sport fishermen, the project would also help Copper Valley and Delta area farmers. The farmers are limited in their ability to produce more crops by a lack of holding area for their harvests. They like the fishermen are subject to a very short harvest season and must ship to holding warehouses in the lower 48. This project has the ability to vary the temperatures in each warehouse from -20 degrees F. to +70 degrees F. Farmers products could be frozen or held in a controlled environment until markets can offer farmers optimum prices. The project would allow farmers to increase their production, value add their products and delay shipping until market prices increase and transportation prices decline. Projects like the one proposed by VFDA will begin to build necessary infrastructure so that Alaska can use its own resources to develop a local year round economy. Such projects will need to be energy competitive and labor saving to compete in the global markets. Most Alaskan businesses can not afford to develop needed infrastructure by themselves, they will need government assistance to make the contribution to Alaska’s economy. Such infrastructure will allow Alaskan’s to develop in state capital; with that capital be re-circulated in Alaska’s economy. 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 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 15 of 18 10/7/2009 Commitment to reporting the savings and benefits The operating plan is the same as 4.4.5 Business Plan as in Phase II documents. 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. VFDA has completed most of the preliminary due diligence for the project. This includes concept evaluation, concept costs, feasibility study and business plan. We have shown the project to state legislators, the city council, and our Washington D.C. delegation. We are consistently told that is a good project, however, the federal delegation insists that the State of Alaska must invest in the project before we will be given consideration for federal funding. We found a federal grant which fit the project of waste energy recovery but we have had to pull back because of the 50% match requirement. VFDA is ready to start the project. We have contacted three engineering firms, each with its own area of expertise to work on the systems engineering. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 16 of 18 10/7/2009 SECTION 8– LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. VFDA was started by the citizens of Valdez and the larger Prince William Sound for the purpose of enhancing the fisheries and fisheries products for the betterment of our collective communities. We have developed many projects which enjoy great support. VFDA moves slowly and ensures community involvement before we proceed. In 2007 we held a work session with the Valdez City Council and received overwhelming support for the project. 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. VFDA is requesting $1,021,287 from the Renewable Energy fund. We will add this to the $150,000 which we have spent in analysis and engineering. In addition we will add $200,000 for land acquisition and $6,000 in travel and contractual funds. This will bring VFDA’s contribution to $356,000 which brings the project thru Milestone #2. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 17 of 18 10/7/2009 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 18 of 18 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 Signature Title Date