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HomeMy WebLinkAboutTyokek Wind Project Application Renewable Energy Fund Round 3 Grant Application AEA 10-015 Application Page 1 of 11 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 11 10/7/2009 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Native Village of Tyonek Type of Entity: Native Village Mailing Address P O BOX 82090 Tyonek AK 99682 Physical Address Tyonek AK 99682 Telephone 907-583-2520 Fax 907-583-1530 Email 1.1 APPLICANT POINT OF CONTACT Name David Boelens Title Vice President Mailing Address 1400 W. Benson Suite 410 Anchorage AK 99503 Telephone 907-277-1003 Fax 907-277-1006 Email dboelens@aurorapower.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 A local government, or X A governmental entity (which includes tribal councils and housing authorities); Yes or No 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes or No 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes or No 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes or No 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 3 of 11 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) Tyonek Native Village Wind Project 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities t hat will benefit from your project. The Village of Tyonek. The Village of Tyonek will be the only community involved in this wind project. 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 Design and Permitting Feasibility Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The Native Community of Tyonek would like to install one 15kW Proven on a 82ft monopole and a 6kW Proven on a 82ft Monopole on top of a bluff looking over the cook inlet. These turbines would be connected directly into the power line to produce clean power to our Native Community. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 4 of 11 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.) By installing these wind turbines on the ridge of Tyonek we will be able to reduce our dependency on expensive fuels and would lower our electrical costs. This new clean energy will also help us in our future goals in developing more clean energy in our community. 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. 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. $ 2.7.2 Other Funds to be provided (Project match) $ 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 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) $ 2.7.5 Estimated Direct Financial Benefit (Savings) $ 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.) $ Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 of 11 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. 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.) Aurora Power has obtained a years worth of wind data at the site location and after doing 6 more months of feasibility studies we would like to start working on construction of the site. Installation and Commissioning would be in August 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.) After reviewing the feasibility in the wind studies and environmental concerns we will review the project and decide whether to pursue this turbine installation. 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 Contractors we plan to use is Alaskan Wind Industries. We selected this company as they have been working with us with construction plans, feasibility monitoring and providing with payoffs. Alaskan Wind Industries also has the certification for tower safety, Proven 15kW certified installers, licensed, insured and bonded with an electrician that has their administrative license that we feel is extremely important for this size of project. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. We plan to keep this project monitored with Aurora Power as well as with Alaskan Wind Industries. Once we have established our project manager we will be working closely with AEA to discuss the progression of our wind project. 3.6 Project Risk Discuss potential problems and how you would address them. We do not foresee any large problems with this scope of this wind project. However if there becomes a problem with environmental concerns we will look at moving the project to a different location and then trying to do more feasibility studies. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 11 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. By collecting data for the past year our records show over 102mph winds and very consistent 40mph winds. With these extreme winds in the area we believe this is the best possible solution for this property. A large megawatt unit as an alternative would not be suitable with limited space on our hillside. Hydro also is a great alternative, however we feel it will take a few years before we look into environmental affects this may have on our community. 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 System that we would like to install will be one new 15kW Proven and one 6kW Proven both on 82ft monopoles that have an 80% efficiency. 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. Aurora Power has been looking into the Proven Energy project. The Proven Energy wind generator is currently in the Antarctic and withstands the heavy winds and low temperatures that we achieve in our location. We plan to hook these turbines into our local grid and use this as more of a back up system as well as provide much clean and inexpensive energy. We have also chosen the 15kW and the 6kW so that our production is under 25kW to fit into the local grid connection. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Currently The Native Communities energy is provided from the production from Aurora Power and the infrastructure. We believe this energy will provide a in much lower rates as well as a cleaner community. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 7 of 11 10/7/2009 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system:  A description of renewable energy technology specific to project location  Optimum installed capacity  Anticipated capacity factor  Anticipated annual generation  Anticipated barriers  Basic integration concept  Delivery methods The Native Community of Tyonek would like to install a 15kW Proven and the 6kW Proven in their native community near the bluff. This would give a 24kW production. The anticipated capacity is a little above the rated wind speeds as our production shows extreme highs. The annual generation would be a little under 60,000kWh’s a year. Barriers that may show later would include a concrete foundation which we have worked out with Alaskan Wind Industries to performed screw anchors that are engineered specifically for our location. We plan to integrate the wind turbine into the grid with windyboy inverters and 6/3 copper wire. We plan to deliver all products for these turbines by barge to the location of the installation with equipment all ready on site from Aurora Power. 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 should be no potential land ownership issues as the Tyonek Native Community would have full ownership of this wind turbine. Attached is our Bylaws and operation agreements. 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 We do not have any building permits in Tyonek that need to be address. We will be registering these turbines with the FAA and do not foresee any large barriers. If barriers do occur we plan to mend them with constant discussion throughout the community. 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 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 of 11 10/7/2009  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 At this location there is no environmental affects from these wind turbines, however we will make sure all the potential barriers are address by contacting organizations to discuss any problems during the feasibility stages. 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 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.) The first years maintenance is included in the bid from Alaskan Wind Industries and in which time they will be teaching our local technician to do annual maintenance on the turbine. The maintenance required on these turbines are minimum. For future maintenance AKWI charges $65.00 an hour plus travel which we will cover for unforeseen technical work not covered by the 5 year warranty. 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 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 of 11 10/7/2009 The power that will be produced will be feed back into the HEA meter and will be given back at the retail rate for all production produced and used. For all excess production that is produced the utility company will give back the current wholesale rate. 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 The fuel used to produce the power needed for the native community of Tyonek will be saved by these turbines annual production. We expect over 50,000 of fuel to be displaces by these turbines yearly at a price of a little under $4.00 a gallon not including inflation. We believe only a as much as a $1,000 will come back to the community as extra income as most of the consumption is used by electricity for the Natives. The City of Tyonek uses 26% of its consumption from electricity and only 6% from other fuels. The city of Tyonek would also like to apply for the 30% tax credit and green tags through Benneville. This project will be of great benefit for not only our economical uses, but also is one of the Tyoneks goals to lead the Alaskan communities with new, clean and renewable technologies. This public awareness we plan to publish as often as possible to help grow our community into 2020. 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 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 of 11 10/7/2009 We plan to use local hire for minimal maintenance after AKWI teaches our technicians and for larger operations we plan to pay AKWI to do maintenance on the project. Some operational issues that could arise is possible inverter issues. We are prepared to handle this with warranties on the project and AKWI’s help with insuring these are installed properly. There are no batteries or backup systems that need to be maintained as we will be hooking these directly into the grid. We are committed to reporting the savings an d benefits as this will help our community grow to show us as a growing community with clean energy. 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. We are prepared to start work once grant is approved. We have been data logging wind patterns for the past year and have researched many products to ensure the best possible location and product placement. AKWI has the Proven Products ready for easy installation and are prepared for the full installation. This is the first grant that the community of Tyonek has applied for and feel this is a perfect match for our community to help our Native Community grow with clean and more efficient energy. We do plan to apply for the 30% tax rebate as well to help recouped some of our matching funds for our community. 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 City of Tyonek is supported by the Kenai Peninsula Borough Mayor as well as the Kenai Peninsula Association for Renewable Energy. Aurora Power is in complete support of this project as well. In the next 6 months, we also plan to receive more support from other organizations and governing bodies. 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 Our community is hoping for 70% of the projects grant funding and will be matching the funds with over $20,000 of our own construction and materials for the installation phase. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 11 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