HomeMy WebLinkAboutSeldovia Wind Grant Final
AEA 10-015 Application Page 1 of 14 10/7/2009
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-III.html
Grant Application
Form
GrantApp3.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet3
.doc
Summary of Cost information that should be addressed by
applicants in preparing their application.
Grant Budget Form GrantBudget3.d
oc
A detailed grant budget that includes a breakdown of costs by
milestone and a summary of funds available and requested to
complete the work for which funds are being requested.
Grant Budget Form
Instructions
GrantBudgetInst
ructions3.pdf
Instructions for completing the above grant budget form.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for completion of each phase.
If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
AEA10-015 Grant Application Page 2 of 1414 10/7/2009
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of Seldovia
Type of Entity:
Government
Mailing Address
PO BOX B
Seldovia AK 99663
Physical Address
148 Dock Street
Seldovia, AK 99663
Telephone
907-234-7643
Fax
907-234-7430
Email
info@cityofseldovia.com
1.1 APPLICANT POINT OF CONTACT
Name
Tim Dillon
Title
City Manager
Mailing Address
PO BOX B, Seldovia AK 99663
Telephone
907-242-9709
Fax
907-234-7430
Email
citymanager@cityofseldovia.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
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
or
No
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
or
No
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
or
No
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
or No
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public.
AEA10-015 Grant Application Page 3 of 1414 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.
Seldovia small wind generation facility
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.
The community of Seldovia
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
X Wind Biomass or Biofuels
Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance x Design and Permitting
x Feasibility x Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The city of Seldovia would like to ask for grant funding to study the feasibility of utilizing wind
energy to help alleviate the winter demand and temporary failure of the current gas generation
facilities. The city of Seldovia sees an increase of demand for electricity in the winter months that
has outpaced their production capabilities. The proposed plan calls for the study and possible
installation of Four 15kw Proven wind generators. The city would like to test several sites for
wind and accessibility, the relatively small size of the turbines is beneficial in helping the city
locate an area that will be readily accessible with the current infrastructure, this may reduce
overall costs while maintaining performance of the wind systems.
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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.)
The proposed plan will take advantage of wind regimes that are available in Seldovia. The
systems proposed have a low start up speed and are designed to produce power in turbulent and
gusty winds. During periods of sustained winds the fuel demands for Seldovia will be lessened
resulting in a savings of both money and fuel that could be used at a later date when there may be
a low wind period. The city of Seldovia will benefit from such a system in several ways, after the
initial payback period has been achieved the power generated from the turbines will be virtual free
to the city and residents, the city may qualify for further granting opportunities as the benefits are
realized from the wind, several jobs will be created in the community during construction, and a
direct savings in fuel demand and expense. The city of Seldovia may also realize increased
savings from future spikes in raw fuel prices and maintenance costs of current generation
facilities. Further savings may be realized from less demand on current utilities which will lessen
the occurrence of emergency power conditions, such as rolling blackouts and complete failure.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of
other contributions to the project.
The general cost to procure the equipment needed to generate power is roughly $100,000.00 per
unit, with tower. Associated cost are installation fees about 10,000 each unit depending on which
tower option, crane and equipment fees hopefully to be sourced locally approximately 6,000 per
unit, foundation costs approximately 10,000 per unit, with engineering, feasibility studies, utility
connection fees and electrical work the costs are estimated to be approximately 40,000 per unit.
With a total estimated cost of 164,000 each unit installed. Yearly inspection and maintenance
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. $508,000.00
2.7.2 Other Funds to be provided (Project match) $150,000.00
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $658,000.00
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully operational
project)
2.7.4 Total Project Cost (Summary from Cost Worksheet including
estimates through construction)
$658,000.00
2.7.5 Estimated Direct Financial Benefit (Savings) $25,000 @ .20 per KWH
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.)
$
AEA10-015 Grant Application Page 5 of 1414 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.
We are planning to solicit publicly for our project manager that lives in the Seldovia Community.
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.)
Feasibility studies for approximately 6 months, coupled with current data from other sources. We
plan to start this as early as January 2010 with our own funds and continue this until Sept 2010.
Foundation work to begin August 2010
Utilities prep work to begin August 2010
Equipment procurement September 2010
Installation of units Late September 2010
Electrical completion Early October 2010
Commissioning Early October 2010
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.)
Upon determination of the feasibility of this project and location determination, the basic
infrastructure will begin to be established.
This will determine the size and type of tower that the units will be installed upon, as maintaining
the units and access to units will be discussed.
Procurement of the units with corresponding towers will then occur.
Contracts will be written regarding personnel to deliver and operate equipment necessary to job
completion.
Erection and installation of units will begin, followed by electrical work completion and final
commissioning.
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 project construction will be managed by Standard Steel and its partnership with Alaskan
Wind Industries, Union ironworkers Local 751 will be a source utilized for trained personnel
during the construction phase. Members of this Union are trained in tower climbing and rescue
procedures as well as being competent with rigging and various other key facets of construction
needed to complete this project safely. Depending on location determination and tower choice
farther equipment may need to be purchased to obtain access to units once installed.
AEA10-015 Grant Application Page 6 of 1414 10/7/2009
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The project will be broken into phases of construction once a feasibility study has been completed
and a location determined. Communication will be via direct communication, emails and project
daily reports along with projected scheduling reports.
3.6 Project Risk
Discuss potential problems and how you would address them.
Logistics may become an issue depending on site evaluation, this project will be pursued with
using existing infrastructure such as ease of transportation of units and equipment via existing
roads or short road expansion. We intend to use a low impact foundation system where access of
heavy traffic will be very limited. The use of existing transition lines will also be perused and
taken into account during site evaluation.
AEA10-015 Grant Application Page 7 of 1414 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 th e
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.
The resource that is available using wind will be determined to a better understanding as soon as the
feasibility study is completed
Pros of wind for this project are the minimal footprint needed for the kw production projected. The
ease of deployment and permitting of these units. The low maintenance of these units compared
with the maintenance heavy other systems currently on market. The relatively small size of these
units compared with the robustness and production capabilities during both daytime hours and
nighttime hours. Alaska has a solar window of about three hours on a yearly average. Educational
potential is very high for a project such as this as accessibility is projected to be able to facilitate
school trips and educational presentations.
Cons for such a project may include personal objections to such systems being implemented.
Concerns over bird injuries or deaths (all studies point to this being a very unwarranted concern)
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 wind energy systems are four new 15kW Proven Energy Wind Generators that are over 80%
efficient.
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.
These turbines will help the existing infrastructure as the resources are becoming harder and harder
to keep in the winter months from HEA. The production from these turbines will provide the PEAK
load needed from HEA to be less than normal which is becoming more and more of a desperate
need each year.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
AEA10-015 Grant Application Page 8 of 1414 10/7/2009
It is projected that the impact will be a more stable energy system for the residents of Seldovia and
ease the demand for resources that are currently unstable in price and in need during the winter
months.
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
A description of renewable energy technology specific to project location
Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Basic integration concept
Delivery methods
The Wind Turbines in suggestion consists of four 15kW Provens. The optimum Installed Capacity at
the rated wind speed is 60kW’s. The anticipated capacity is based on the projected wind speed of
around 12mph. The production will be approximately 160,000 kWh’s a year. We feel that there
should not be too many barriers as AKWI also has confirmed to participating in community
discussions about these wind turbines to help the community understand the impact. Seldovia
Community plans to integrate these turbines directly into HEA’s electrical grid lines. The delivery
method of the turbines will be by barge to the community.
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.
Land owned or leased by the city of Seldovia will be studied first to determine feasibility. Private land
may be considered if city land is not feasible. This may result in a case by case study to find a solution
that best benefits the city and land owner/owners.
Current road accessible property will be studied as a first priority easily expanded roads secondly and
remote locations that are close to needed utilities as a third option.
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
City planning and zoning will handle most permitting issues
State/ Federal park land may become a barrier and will be addressed during the feasibility period.
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
AEA10-015 Grant Application Page 9 of 1414 10/7/2009
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
There does not appear to be threatened or endangered species in area.
The foot print is expected to create very minimal impact to existing habitats
Wetlands may not be considered in feasibility studies
Historical information can be reviewed to determine if land has historical value
Land constraints will be reviewed during feasibility studies
Communications interference will be reviewed during feasibility study
FAA considerations and regulations will be followed
Sites will be established outside of direct conflict with businesses and homes
Other considerations will be address during feasibility studies
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
Project total cost is estimated at or around $658,000.00.
Feasibility studies at or around $25,000.00 this entail the first amount requested to proceed with
testing sites.
The city of Seldovia will be providing $150,000 in local contributions, other nonprofit grant sources
and in-kind sources for this project.
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.)
There will be a yearly service requirement to maintain the 5 year warranties offered by the
manufacturers. It will entail visual inspection of blades and service to several moving parts. A
checklist can be provided. The installers will also service the units as required. Fees are expected to
minimal as service of unit will be scheduled at a once yearly interval.
AEA10-015 Grant Application Page 10 of 1414 10/7/2009
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
The city of Seldovia will be the distributor of the power generated from the turbines. The power will
be sold to the end users.
Retail price is expected to average around .20 per KW
Projected payoff of system will be around 26 years at the current rates applied.
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
Approximately 12,184 gallons of fuel will be displaced by these turbines each year at an average of
$3.00 a gallon or more. Anticipated Annual reviews are going to be only a few $2,000 or so as we
plan to use all the electricity produced. If grant is approved however, the City of Seldovia will look
into a larger Power Purchase Agreement with HEA above the normal rate of .18. The City Of
Seldovia would also like to apply for the 30% tax rebate if qualified and will be applying with
Benneville to sell green credits to. With these turbines lacing the hillside of Seldovia and providing
the town with clean and environmentally friendly power, the sustainability from these turbines will
make Alaska a cleaner and more reliable place to live.
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
AEA10-015 Grant Application Page 11 of 1414 10/7/2009
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 City of Seldovia plans to hire a local project manager for this project that will help with
the design and project. With a 5 year warranty our city council will be appropriating funds to
take care of maintenance issues for the life of the turbine s. Possible blade repairing or
replacing a slip ring in the future would be funded through our city budget. These systems
do not have a maintenance that is needed monthly and the yearly maintenance will be
completed locally. There will be no battery backup and will be hooked directly to the grid.
Our committee will be committed to reporting the benefits and savings to the AEA.
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.
Seldovia will be installing a data logging anemometer this January to start testing for feasibility
way before the grant will be funded. Once feasibility is reached, Seldovia is ready to install these
turbines and to start construction immediately.
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.
Seldovia has the local support from the Kenai Peninsula Borough Mayor and City Manager of
Seldovia. The City Council of Seldovia is in complete support of this project and will be gathering
more local support as progress is being met with feasibility studies and grant approvals.
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
AEA10-015 Grant Application Page 12 of 1414 10/7/2009
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
The city of Seldovia plans to match funds from the communities budgets as well some for inkind
feasibility studies after July 2010. The City of Seldovia is extremely committed to this project and
would like to start the projects as soon as possible
AEA10-015 Grant Application Page 13 of 1414 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
AEA10-015 Grant Application Page 14 of 1414 10/7/2009