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HomeMy WebLinkAboutDelta Wind Grant App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 24 9/2/2008 AEA-09-004 Renewable Energy Grant Application Second Round, November 10, 2008 Final Design, Permitting and Construction PROJECT: Delta Wind Project LOCATION: Delta River Region, Alaska OWNER: Alaska Wind Power LLC, a company owned by Alaska Power & Telephone Company and LAPP Resources, Inc. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 2 of 24 9/3/2008 Application Forms and Instructions The following forms and instructions are provided for 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.html The following application forms are required to be submitted for a grant recommendation: Grant Application Form GrantApp.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 Costworksheet.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget.xls A detailed grant budget that includes a breakdown of costs by task and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInstr.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 a plan 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 24 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Alaska Wind Power LLC Type of Entity: Private Wind Energy Developer, Independent Power Producer Mailing Address Alaska Wind Power LLC 10600 Prospect Drive Anchorage, AK 99507-6494 Physical Address Alaska Wind Power LLC 10600 Prospect Drive Anchorage, AK 99507-6494 Telephone 1 907 248-7188 Fax 1 907 248-7278 Email lapres@gci.net 1.1 APPLICANT POINT OF CONTACT Name David W. Lappi Title Member, Alaska Wind Power LLC Mailing Address 10600 Prospect Drive Anchorage, AK 99507-6494 Telephone 1 907 248-7188 Fax 1 907 248-7278 Email lapres@gci.net 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, or A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 24 9/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/ Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA. Project sponsors Alaska Wind Power LLC (“AWP”), and First Wind Alaska Holdings, LLC (“FWA”), a wholly owned subsidiary of First Wind Holdings LLC, propose the Final Design and Permitting, Financing, and Construction (and ongoing operation) of the 50MW Delta wind power plant on State property to harness the significant wind energy potential within the Delta River area south of Delta Junction. 2.2 PROJECT DESCRIPTION Provide a one paragraph description of your project. At a minimum include the project location, communities to be served, and who will be involved in the grant project. The Delta Wind Project is located approximately 25 miles south of Delta Junction near the end of Coal Mine Road and is designed to contribute 50 MW of clean, renewable wind power to the Golden Valley Electric Association (GVEA) railbelt energy grid. The communities served will include all communities within the GVEA’s service area including Delta Junction, North Pole, Fairbanks, Fox, College, Nenana, and Healy. In addition to local communities, a number of large facilities are currently served by GVEA’s transmission system including Alyeska Trans Alaska Pipeline Pump Station 9, Fort Knox Gold Mine, and Pogo Gold Mine. More distant utilities could also benefit through the railbelt electric grid. An Interconnection Study with GVEA is currently being conducted by Power Engineers, Inc. to identify costs associated with integrating Delta Project wind power and GVEA’s existing transmission system. The results of the interconnection study will be used to help formulate a power purchase agreement between GVEA and the project sponsors. The project will include construction of a 20 mile-long transmission line, and a ten mile-long construction access road across state-owned land from the Richardson Highway south to the proposed wind power generation facility. The power generation facility will include thirty 1.65 MW AAER wind turbines or equivalent, mounted on 65 meter high towers (subject to final design and site suitability) set on buried concrete foundations. Underground power collection cables and control wiring will lead from each turbine to the transformer substation. A five-acre lay down yard with a control building/service facility/warehouse will be installed within the wind farm area. Overhead transmission lines from the transformer substation will follow the access road and Richardson Highway approximately 20 miles to the existing GVEA power transmission grid near Alyeska Pump Station #9. The grant participants include Alaska Wind Power LLC who have four Alaska wind projects under development (Delta, Tok, Slana, and Bethel), and First Wind Alaska Holdings, LLC, a subsidiary of First Wind Holdings, LLC, an experienced wind developer and independent power producer with 39 wind energy projects in various stages of development. In addition to our own in-house efforts, we are retaining experienced consultants and contractors to assist with project development, which Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 24 9/3/2008 may include:  Performing wind integration studies  Securing State easement for the transmission line and road  Securing State land lease acquisition for the wind farm site  Conducting topographic mapping for the wind farm, transmission line, and road  Conducting wetlands mapping for the wind farm, transmission line, and road  Performing archeological review for the wind farm, transmission line, and road  Creating detailed design for the wind farm, transmission line, and road  Finalizing a Power Purchase Agreement with utility(s)  Constructing and operating the Project 2.3 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. Include a project cost summary that includes an estimated total cost through construction. This grant application is for $13 million to be a component of the overall project financing package of $135.3 million. This $13 million will primarily fund the early work on the project including the following two tasks: 1. $3.0 million for the final environmental and design studies, land lease and ROW acquisition, legal reviews, and power purchase agreement completion, and only when this phase has been satisfactorily completed, then 2. $10 million for the construction of the proposed wind farm transmission line and access road. The estimated total cost to develop and construct the 50 MW Delta Wind Project is $135.3 million (subject to final design). In addition to the grant request to design, permit and construct the transmission and access road on state land, FWA and Alaska Wind Power intend to apply for a $122.3 million Alaska Power Project Fund loan or other commercial loan. The project sponsors will finance any remaining funds needed to cover any additional project cost. Applying for available public and/or private loan financing will allow the project to proceed rapidly to quickly benefit power consumers in the Interior. The recent reduction in world oil prices may somewhat delay the construction of any North Slope gas line that could serve Interior consumers, leaving those customers with (still expensive) oil-fired electric generation as a large component of their energy mix. This financing approach will also preserve the bulk of the Renewable Energy Fund grant money for off-grid hard-to-finance projects. Railbelt projects that can demonstrate economic feasibility should not depend on a large component of project financing from grant monies to get into production. The following provides a very preliminary and general summary of major total project costs: Permits, Environmental, Design Studies 3.0 Transmission line and road 10.0 Control & Maintenance Building 0.7 Meteorology & Wind Prediction 0.5 Wind Farm site roads & pads 2.0 Foundations for Turbines 12.0 (30 x $400k each) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 24 9/3/2008 Turbines, Towers & Commissioning 75.0 (50 MW at $1.5 mill/MW) Turbine, Tower & Rotor Shipping 6.0 Spare parts & supplies 1.0 Crane and Turbine Construction 9.0 (rental and mob/demob) Transformer Station to 138KV 3.0 Underground Power Collection 4.0 Hookup 1.5 Test & Commission turbines, controls & transmission system 0.8 Financing Costs, Legal, Closing 5.0 Construction Insurance 0.8 Contingency 1.0 Total: $135.3 million 2.4 PROJECT BENEFIT Briefly discuss the financial benefits that will result from this project, including an estimate of economic benefits(such as reduced fuel costs) and a description of other benefits to the Alaskan public. Final Project Design This grant will speed the completion of final environmental and design studies, land lease and ROW acquisition, legal reviews, and the power purchase agreement. We intend to vigorously pursue land and ROW acquisition from the State, but the State’s land lease procedures may take six months to finalize and secure. Project participants are then in the awkward position of spending significant funds on preliminary development tasks before the State makes its final decision on a land lease for the project. These grant funds will speed the final design process so that construction and commissioning can be completed in 2010. If studies, permitting, or commercial arrangements take longer to complete than we have projected, the wind farm can be completed and commissioned during the summer of 2011. Transmission Line and Construction Access This grant will fund the construction of a 20 mile–long transmission line adjacent to the Richardson Highway from the end of the railbelt electric grid at Pump Station 9, and a parallel seven mile-long construction access road across state land from the Richardson Highway south to the proposed wind power generation facility. When a transmission line linking the Copper River basin and Interior Alaska is constructed, this 20 mile transmission line will serve as a vital link in the regional intertie between the railbelt grid and the Copper River basin grid. In the Land Use Permit issued to Alaska Wind Power to evaluate the area’s wind resource potential, the Alaska Department of Natural Resources states that this project would “serve the state’s goals for responsibly developing, conserving, and enhancing Alaska’s natural resources for the use by present and future Alaskans.” The Delta Wind Project Generally: GVEA is currently producing about one-third of their power from liquid hydrocarbons, one-third from coal, and purchasing another third from South-central Alaska utilities through the Northern Intertie. The Delta Wind Project will likely displace GVEA’s most expensive power, which is peaking power made from liquid hydrocarbons. Delta Wind Project electric power generation at the Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 24 9/3/2008 far end of GVEA’s transmission system will diversify their sources of supply geographically so they are not so heavily dependent on the integrity of the Northern Intertie. With dynamic VAR support associated with the wind farm, GVEA’s grid could be strengthened by regulating and stabilizing voltage levels. Our generation will provide an additional source of local power for consumers in Delta Junction, reducing line losses of a few percent from North Pole to Delta Junction. Several large loads exist in the Delta Junction area: the Pogo Gold Mine, the Fort Greely Missile Defense site, and the Alyeska Pipeline Pump Station 9. Just the pump station electrification and the new missile site have increased the electric load by 30 MW within the last few years. All GVEA consumers could benefit from the Delta Wind Project due to the fact that wind has no fuel cost and so can be sold at a known price. This could lower fuel supply cost volatility that is present with oil and natural gas. Air quality in the vicinity of power plants supplying GVEA’s energy will also improve as we will be displacing hydrocarbon combustion with clean renewable energy on windy days. This will also reduce the significant exposure GVEA’s customers have to carbon tax or CO2 cap and trade proposals likely to pass in the near future. Some of the proposals Congress has considered recently could add up to two cents per kWh or 15% to the price of fossil fueled electricity ($0.25 per gallon of diesel burned. Wind-generated electricity could save consumers this money through long-term electricity supply contracts. Development of the wind resource will benefit not just Alaska, but the entire nation. Hydrocarbons that Alaskans do not use can be exported, reducing our reliance on oil imported from countries in less secure parts of the world, and reducing the outflow of wealth from our country. Alaska’s consultants and contractors will likely benefit from wind farm construction activities, and the ongoing operation of the wind farm could generate several full-time employment opportunities for local residents. Wind farm tourism opportunities may also exist, and the Delta Wind Project could attract students, teachers, and other visitors. Subject to safety requirements, after completion of construction of the Delta Wind Project tourists and other visitors will still be able to use the land around the wind farm for a variety of uses. 2.5 PROJECT COST AND BENEFIT SUMARY Include a summary of your project’s total costs and benefits below. 2.5.1 Total Project Cost (Including estimates through construction.) $135.3 million 2.5.2 Grant Funds Requested in this application. $13 million 2.5.3 Other Funds to be provided (Project match) $0.7 million 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $13.7 million 2.5.5 Estimated Benefit (Savings) $9.67 million 2.5.6 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.) $ 35.74 million over 20 years, plus royalties (see below) Estimated Benefit (Savings): Assuming avoided project cost of borrowing $13 million over 20 years at 6% = $9.67 million. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 24 9/3/2008 Public Benefit No 1: Although our power purchase agreement is not yet negotiated with a utility, we expect to be able to offer a power purchase agreement with a known price, which will allow the utility to hedge its fuel price risk. If we save consumers just one cent per kWh over the price of generating electricity using liquid hydrocarbons: 50 MW Wind Farm X 30 percent Capacity Factor X 8,760 hours per year = about 131 million kW hours per year, or more than $1.31 million per year in savings, or more than $26.28 million over 20 years, plus: Public Benefit No 2: If line losses from North Pole to Delta are 3 %, then our 131 million kW hours per year saves consumers (our power will be consumed in Delta Junction, replacing power imported from North Pole or more distant points): 131 million kWh X $0.12/ kWh (average cost) X 0.03 = $473,000 per year in savings, or $9.46 million over 20 years, plus: Public Benefit No 3: The State of Alaska (or University of Alaska when they receive title to the land) will receive millions of dollars in royalties on the wind generation at rates still to be negotiated in the land lease. Public Benefit No 4: Air quality in the region of GVEA’s current generation facilities will improve (including a reduction in winter ice fog) proportional to the amount of fossil fuel combustion that we displace. The dollar value of reduced health care costs is hard to calculate, but it will be a real benefit. Public Benefit No. 5: A portion of the money that used to leave the Fairbanks area (and Alaska) each year to buy diesel fuel will now circulate within the local community and Alaska generally, strengthening the local economy. If we consider the “multiplier effect” this benefit could be significant. 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. FWA or its subsidiary will be the lead manager of the project, assisted as needed by Alaska Wind Power LLC’s Alaska experience. The project team is also supported by the parent companies of the two project proponents above; Alaska Power & Telephone Company, First Wind Holdings, LLC, and Lapp Resources, Inc. First Wind Alaska Holdings, LLC a subsidiary of First Wind Holdings, LLC (“First Wind”), an independent North American wind energy company focused exclusively on the development, ownership and operation of utility wind energy projects (see http://www.firstwind.com/). Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 24 9/3/2008 Working in partnership with local communities and utilities, First Wind constructs and operates wind energy facilities to provide sustainable renewable energy and job opportunities for local residents, while protecting the environment for future generations. First Wind has successfully developed and is operating 92 MW of wind energy in three projects the northeastern regions of the USA and Hawaii. First Wind is currently constructing three additional projects comprising 385 MW, and has 5,000MW of wind projects in various stages of development. First Wind’s projects are located in over a dozen states and Canada, and it is also now working to develop wind energy projects in Alaska. Mr. Paul J. Gaynor is President and Chief Executive Officer of First Wind Holdings, LLC. Mr. Gaynor is responsible for the strategic direction and day-to-day management of First Wind projects in North America. Mr. Gaynor has more than 20 years of experience in the energy field, encompassing leadership and finance roles in the energy, power, and pipeline sectors. In addition, he has been engaged in several landmark energy and power financings across the globe. He has a Master of Business Administration, University of Chicago Graduate School of Business and a Bachelor of Science, Mechanical Engineering, Worcester Polytechnic Institute. He is assisted by an executive management team whose primary responsibilities and resumes are listed at http://www.firstwind.com/aboutFirstWind/team.cfm. The senior management is further supported by a staff of an additional 130 employees in another 13 regional offices. First Wind follows a “develop-to-own” business model with experience in all phases of a project development and operation. Our expertise in these areas includes: Development Our development philosophy includes three major tenets: 1. Best practices from day one to ensure that all projects are developed efficiently and successfully. 2. Long-term commitment through the building and maintaining of strong relationships 3. Community involvement to support a fair and effective public process Finance The principals of First Wind have raised in excess of $230.0 million in limited recourse project financing and tax equity for 72 MW of wind projects in the United States of which $70.0 million was raised for the 30 MW Kaheawa wind project on Maui, Hawaii, and the balance has been raised in support of the Mars Hill project in Maine. Construction Management First Wind draws on the experience of our team to insure on-time and on-budget projects. This experience is particularly helpful during the development process, site selection, and contract negotiations. Operation & Maintenance Philosophy 

 First Wind places a high value on hands-on operational control, helping assure that our wind farms are well-run and safe, consistent with utility operating practices, providing excellent clean energy availability for our customers. Currently, First Wind assigns a full-time Operations Manager for each project supported by an additional individual dedicated to site management. Working together, First Wind’s on-site staff manages all third party contracted turbine operations Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 24 9/3/2008 and maintenance services, oversees local community involvement activities, and ensures permit compliance. Contract compliance, project reporting and procurement functions for all operating projects is supported by a team of operating and finance managers. In addition, First Wind has developed an exclusive meteorological asset management team in order to control the escalating cost of subcontracted work, reduce installation delays and errors, improve installation documentation and maintain tower availability. Alaska Wind Power LLC will assist as needed. It is managed by its members, Alaska Power & Telephone Company (AP&T), a certificated Alaska utility specializing in renewable energy (mainly hydropower), and LAPP Resources, Inc. (LRI), an Alaska-owned private resource development company. Both AP&T and LRI are employee-owned. AP&T’s CEO is Mr. Bob Grimm and LRI’s CEO is Mr. David Lappi. Both have significant project management experience. AP&T’s web site (see http://www.aptalaska.com/index.php) describes the company as follows: Recognized as one of the most progressive utilities in Alaska, the keys to AP&T's continued success lay primarily in its willingness to promote and develop long-term reliable energy and communication solutions while capitalizing on the innovation and technical expertise of its skilled and dedicated employees. AP&T currently provides service to communities located above the Arctic Circle, deep in the Wrangell Mountains, and throughout the islands of Southeast Alaska. We travel by boat, floatplane, snow machine, riverboat, helicopter, and all terrain vehicles. We maintain systems on windswept mountaintops and storm-battered islands. Our power and telecommunications lines cross rainforest, taiga, and tundra. We operate facilities in places that are among the wettest, driest, windiest, coldest, and most remote regions on earth. We live and work in Alaska. [The low temperature in Tok last winter was -72.5° F, and the lights stayed on.] Alaska Power & Telephone Company proudly marks 2007 as its 50th year of growth, innovation, and leadership in the utility industry. AP&T serves over 30 communities stretching from the Arctic Circle to the southernmost tip of Southeast Alaska. In five decades, AP&T moved from humble beginnings to take a leadership role in the development of renewable resource energy in Alaska. Through a combination of low impact hydro, wind, and experimental underwater river turbine projects, AP&T’s 134 employee-owners work to further minimize our environmental footprint while ensuring the availability of energy resources necessary for future years. LAPP Resources, Inc. has been involved in the Alaska energy business since 1991. During the last 17 years, LRI has been instrumental in exploring new energy sources for both the rail belt and rural Alaska, from wind energy, to remote sensing for geothermal exploration on the Alaska Peninsula, to shallow gas and coalbed methane exploration in the Cook Inlet basin and Interior (see http://home.gci.net/~lapres/index.html). 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.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 24 9/3/2008 In February 2008 Rowland Engineering Consultants completed a preliminary assessment of a road access corridor to the Delta Wind project site (enclosure 1). Work funded by this grant would include finalizing and surveying the preferred right-of-way ROW in June 2009, with road construction completed in May/June 2010. Construction of 30 foundations, towers, turbines, and transmission and control facilities, would be completed in summer 2010 for commissioning in the fall. Task Time Period GVEA Integration Study Nov-Dec 08 State road & line easement Dec 08-Mar 09 Topographic mapping May 09 Wetlands mapping June 09 Archeological review June 09 Avian Studies Complete June- Sept 09 Detailed road & line design June - Sept 09 State land lease acquisition June – Oct 09 ADF&G fish pass permit July 09 Detailed wind farm design July – Sept 09 Power Agreement with utility Aug - Sept 09 Road & Trans Line Construction April - July 2010 Wind Farm construction & commissioning June- Oct ‘10 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them.  Transmission Line and access road easement, and Land Lease – Long-term access to the site is required – March 2009.  Successful completion of final design and environmental studies is required prior to construction – July 2009.  Completion of Integration Study and Power Purchase Agreement – A stable long-term contract for power sales is required for the project to proceed – Aug – Sept 09.  Access road and transmission line construction – April – July 2010.  Successful wind farm construction (July-Sept 2010), and commissioning is expected in October 2010. 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. FWA will be the lead manager of the project, assisted as needed by Alaska Wind Power LLC’s Alaska experience. Their experience is listed above under 3.1 Project Manager. Contractors will be selected to carry out necessary Project tasks using optimal wind industry practices. The tasks include:  Performing wind integration studies Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 24 9/3/2008  Securing State easement for the transmission line and road  Securing State land lease acquisition for the wind farm site  Conducting topographic mapping for the wind farm, transmission line, and road  Conducting wetlands mapping for the wind farm, transmission line, and road  Performing archeological review for the wind farm, transmission line, and road  Creating detailed design for the wind farm, transmission line, and road  Finalizing a Power Purchase Agreement with utility(s)  Constructing and operating the Project 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. FWA and Alaska Wind Power LLC will work closely with selected contractors and keep the AEA informed of progress by regular e-mail updates as components of the project are completed. Close liaison will be maintained with the contractors throughout the project. Issues to be tracked include scope clarifications, progress relative to budget, schedule, data recovery, and health and safety. Further details may be specified in the final Grant Application. 3.6 Project Risk Discuss potential problems and how you would address them. The design and environmental studies have a low completion risk associated with them. The studies could uncover a conflict between our wind farm proposal and some aspect of the public or wildlife interest. In that case, modifications or various mitigation measures could be evaluated, for instance turbine sites or proposed rights of way could be moved. The surface access right-of-way alignment will be surveyed to avoid any wetlands in the project area. The final road alignment will also be developed in consultation with the Department of Natural Resources, elected officials and affected stakeholders, to avoid public access use conflicts and maximize the public benefits that can be gained by all season access to state land in the project area. The access road is being constructed across sparse forest land underlain by generally well- drained glacial outwash soils (gravel), thought to be ideal construction materials for roads, pads, foundations, and electric transmission facilities. There is low risk of unexpected or expensive construction conditions, so we believe the road construction has a low completion risk. The wind farm construction also carries a low completion risk. First Wind has completed three wind farms and has three wind farms under construction. As an experienced wind farm developer and operator, they have the required expertise to see the project through construction and successful operation. The Delta Wind Project carries commercial risk in the short term since we do not yet have a Power Purchase Agreement negotiated with a utility. We believe that our power will prove attractive to Interior consumers, and they are likely to be receptive to accepting our power at commercially-viable rates. This risk will be mitigated with the goal to negotiate and finalize a power purchase agreement by September 2009. Another low-risk possibility is long-term climate (wind) change. Studies have shown that over a Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 24 9/3/2008 25 year period, the variability in wind is generally less than five percent. Our commercial contracts will be priced and adjusted to account for this risk. This variability could also prove positive. 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 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 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 wind energy resource of the Delta Wind Project has been evaluated with two 50 meter meteorological towers, one for 22 months, and the other for ten months. This monitoring has documented a resource which would support an economically viable 50 MW wind farm considering the size of the market and projected tariff or power purchase agreement. A 50MW wind farm at our location is expected to produce 131 million kWh of clean, renewable energy every year. The limiting factor for wind energy capture in this region is the amount of wind power that can be integrated into the railbelt electrical grid, not the wind resource. A 50 MW wind farm would provide about six percent of the railbelt’s 800 MW peak load. The Delta Wind Project’s wind resource is unusual in that the wind is largely mono- directional and blows only from the south, which will help optimize our turbine layout for best efficiency. The area has a high percentage of calm days, but when the wind blows, it is generally sufficient to maximize wind turbine output. Pros: The Delta Wind Project will allow more efficient use of fossil fuels where renewables are less applicable, such as in transportation and/or to be exported to regions where wind generation is not an option. The Delta Wind Project will improve air quality in the Fairbanks/North Pole/Delta region by reducing fossil fuel use at existing power plants in these areas. The Delta wind resource is a known resource that can be developed using thoroughly tested and proven modern wind turbine technology within the short term to help meet the energy needs of a growing region of the State. We believe wind energy is the most efficient and economical renewable resource for Interior Alaska. Other renewable sources include solar and in-stream hydro (Tanana River), both of which are not available during high-demand winter months, and neither option is likely to be economic within the near future. Geothermal energy could be Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 24 9/3/2008 available in the region (e.g., Manley and Chena Hot Springs), but new and expensive exploration of the potential sources would be needed. Other options as sources of power for Fairbanks include continued reliance on fossil fuels, which currently supplies more than 90% of the market. Locally-used fossil fuels include oil refinery byproducts from the North Pole Refinery (supplies 1/3rd of GVEA’s demand), and coal from the Usibelli Coal Mine near Healy (1/3rd). GVEA purchases another third of their electricity from South-central Alaska which is generated by about 90% from Cook Inlet natural gas and 10% from hydro. GVEA also receives about 20 MW (in addition to that purchased from South-central utilities) from the hydroelectric facility at Bradley Lake on the Kenai Peninsula near Homer. The Healy Clean Coal Plant could be re-started to generate more coal-fired electricity if the contractual, technical, and regulatory hurdles could be overcome, but GVEA may not be the beneficiary of this electricity. In the intermediate future, a gas pipeline may be built from the North Slope to Fairbanks, but neither the schedule for construction and completion, nor the price of natural gas from this source is currently known. The recent worldwide decline in the price of natural gas, and new technologies allowing for more economical recovery of natural gas from Lower- 48 oil shale resources may delay a North Slope gas line to Fairbanks (and the Lower-48) for an undetermined period. All fossil fuel sources of electricity are likely to be governed by future “cap and trade” or “carbon tax” regimes designed to reduce CO2 emissions growth or output. Wind power will not be subject to these added costs, and may in-fact benefit wind power consumers by helping to limit rate increases. Environmental attributes or “carbon credits” created by renewable wind power generation will be sold to help reduce electric rates. Cons: Wind energy is not dispatchable, as it is an intermittent resource, however, numerous grid studies have shown that a significant penetration of wind can occur without major system upgrades or increases in spinning reserves. Also, improved wind forecasting over a 24 hour period has helped integrate wind into the grid. First Wind’s Maui project produces about 10% of annual electric consumption on that island. Wind also has environmental impacts such as avian and bat mortality. Initial investigation of the Delta project has shown avian and other environmental impacts to be low. This will be confirmed in more extensive studies in 2009, including avian, wetlands, visual, animal habitat, etc. 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. Golden Valley Electric Association currently gets about one third of its power from each of the following sources: Healy coal, power purchased from South-central Alaska utilities, and refinery byproducts from the North Pole Oil Refinery. GVEA’s peak system load was 223 MW at 5:00 pm on December 19, 2007. It was minus 33 degrees F at the time. Coal: Healy coal is transported to six Interior Alaska electrical power plants - including three military sites: Fort Wainwright (U.S. Army), Eielson Air Force Base and Clear Air Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 24 9/3/2008 Force Station; Golden Valley Electric Association (Fairbanks' electric cooperative); Aurora Energy (a wholesale supplier of electricity and provider of district heat in Fairbanks); and the University of Alaska Fairbanks power plant. The 25 MW mine-mouth coal-fired power plant in Healy was built in 1967, and the adjacent and mothballed 50 MW Healy Clean Coal Plant was built in 1997. Purchased Power: Power purchased from South-central utilities is imported through the Northern Intertie. About 80 percent of it is generated using simple cycle natural gas turbines in several locations, generally at efficiencies of about 35 to 40 percent. South- central is running short of natural gas and this scarce resource could be used more efficiently for space heating of homes and businesses (more than 90% efficiency in modern furnaces). Liquid Hydrocarbon Generation: The GVEA generation plant at North Pole burns refinery byproducts; HAGO (heavy atmospheric gas oil) for 120 MW, and naphtha for an additional 60 MW (built 2006). Alaska Wind Power is currently undertaking an interconnection study with GVEA through their system stability consultants, Power Engineers. This study will identify the design, equipment, and operating procedures required to ensure GVEA’s system stability when accepting power from the Delta Wind renewable energy project. 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. See 4.2.1 above. We are funding and have begun an interconnection study through GVEA to identify necessary measures to minimize the impact of wind power integration on their grid. This study is expected to be competed by the end of December 2008. Our project will benefit air quality in Fairbanks, North Pole, and Delta Junction, since less fossil fuel will need to be burned in existing power plants in these locations to follow GVEA’s load. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Fairbanks is a modern city of about 80,000 people in central Alaska. This city and a few outlying connected communities will consume the electricity generated by this project. In addition to Fairbanks, those cities are Delta Junction, Big Delta, Salcha, North Pole, Fox, Ester, Nenana, and Healy. In addition, several large industrial users will benefit, e.g., Fort Knox Gold Mine, Pogo Gold Mine, Fort Greely Missile Defense, and Alyeska Pump Station 9. We believe that the Delta Wind Project will help shelter utility customers from the effects of carbon taxes or emissions trading schemes that we believe are about to be implemented. These new taxes could cost Interior consumers an additional 15% on their electrical bills. Railbelt utility customers are now 90% exposed to the full brunt of those taxes since 90% of their generation is coming from fossil fuels. Power costs to rate payers would be no greater than other non-renewable new generation, which might be brought online in the future. Indeed, the Delta Wind Project has potential to reduce power costs to the rate payer, depending on factors such as financing ultimately realized. Wind fuel is Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 24 9/3/2008 “free” and a long-term tariff would be sought, so any potential rate increase(s) with time would be less likely than with fossil fuel generation. 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 Delta Wind Project will generate renewable electricity from wind resources in the Jarvis Creek region near Delta Junction.  The optimum installed capacity will be dependent on our power purchase contracts with utilities, and is not limited by the wind resource available.  Based on meteorological monitoring to date, we anticipate a minimum capacity factor of 30 percent.  The project will generate about 131 million kW hours per year from 50 MW of nameplate installed capacity, more capacity will be installed if power sales agreements allow.  Barriers include upfront environmental, engineering, and permitting studies; i.e., information required to achieve project permit approval. Other barriers include an adequate power purchase agreement with the utility being negotiated, or unanticipated wildlife or bird issues arising from our specific site.  Integration will be by step-up transformers and a 20 mile long 138 KV transmission line built to get our power to the GVEA grid. An integration study is underway now to identify grid integration issues.  The power will be sold wholesale to railbelt utilities and delivered to consumers by their utilities as it is now. 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. The access route and site are proposed to be located on vacant State land that is currently held under a 36 square mile State Land Use Permit. The University of Alaska has selected (but has not yet received) most of this area for ownership as part of its land grant from the 2005 State Legislature. We have held a “pre-application meeting” with University and government stakeholders (US COE, F&WS, ADF&G, DNR, DEC, BLM) and we expect few impediments to project completion. Completion of our avian and design studies is required to proceed to a State land lease for the wind farm site and rights of way for the transmission line and construction access road. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 17 of 24 9/3/2008 We hold another six square miles of adjacent Federal land as a three-year BLM Wind Right of Way, allowing us to study the wind resource and propose a final development plan. At this time, the State lands look like a better wind resource, so no development of BLM lands is now proposed. 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  Wetlands Permit (if applicable) – June 2009  SHPO Review – June 2009  ADF&G fish passage permit - July 2009  DOTPF driveway and powerline easement – Aug 2009  State land lease - Sept 2009  Interconnection and Power Purchase Agreement – September 2009  BLM Wind ROW and NEPA issues – as required if BLM land is eventually developed, but not on the critical path for initial State land development 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 For the wind farm proposal generally:  No threatened or endangered species are known in the local area. The avian studies that are already planned are a key element of our environmental study.  The area is used by moose and caribou (Macomb Herd). Few wind farms have been built in caribou habitat. Discussions would be held with ADFG and USFWS on any needed information to support permit decisions.  Small wetlands exist near kettle lakes along the proposed road ROW. Corps of Engineers 404 b(1) guidelines require developers to (1) avoid wetlands, (2) minimize impacts if unavoidable, and (3) mitigate unavoidable impacts. The road will avoid wetlands negating the need for 404 permitting.  Few archaeological and historical resources are known in the area. The area was glaciated a few thousand years ago, so older resources are probably absent. Coal Mine Road goes to an old coal prospect and some relict mining equipment remains. A SHPO 106 review would be undertaken.  There are no known land development constraints, aside from winter winds that at Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 18 of 24 9/3/2008 times exceed 100 mph, with drifting snow. Access is to our proposed site is via vacant public land. No incompatible land use(s) affect wind farm development.  Telecommunication interference is unlikely. There are no businesses and few residences within 20 miles of the site. We are not within line-of-sight paths for microwave communications along the pipeline corridor.  The area under permit from the BLM is state selected, and development of a wind farm on adjacent state land will help bolster the state’s claim to that selection.  Aviation use of the area is frequent, since it is near the Trans Alaska Pipeline, and between the military Donnelly Training Area/Fort Greely and Black Rapids Training Camp. Military airspace overlies the site, and civilian airmen often fly along the Delta River Valley that contains the Richardson Highway. Notices to Airmen and obstruction lights on met towers and turbines will alert the aviation community of the potential hazard.  Aesthetic and visual impacts will be reduced by locating the wind farm several miles from the Richardson Highway where the majority of travelers will not see it from close quarters. Some find wind turbines graceful additions to the countryside, a reminder that we can live well while reducing our use of fossil fuels. About half of the transmission line will be adjacent to the Richardson Highway, and its southern half is along our proposed access road. Most travelers will not see the southern half of the line, since it will be some distance away from the Richardson Highway.  GVEA has a wind farm proposal at Eva Creek, near Healy, that could potentially compete for market share with our proposed wind farm. Ideally, both farms could be accommodated, since geographic diversification for this form of distributed generation will make wind power more reliable and subject to fewer output swings. Our wind project at 50 MW would constitute a six percent penetration of the railbelt peak load. Given the flexibility of the railbelt generation system (gas/oil / hydro) this level of penetration is conservative. A suitable power purchase agreement with a retail utility is a key element of our project. Environmental studies could uncover unknown animal or bird issues that could impact our proposal. 4.4 Proposed New System Costs (Total Estimated Costs and proposed 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 project cost for the 50 MW Delta Wind Farm is estimated at $135.3 million. This phase of the project is for final design and environmental studies at Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 19 of 24 9/3/2008 $3 million, and wind farm access road and transmission line construction at $10 million.  The grant request for this phase is $13 million (final environmental studies and project design, and road and transmission line construction).  Company capital contribution matching funds and labor will be supplied as required to complete the construction phase of the project.  Sufficient funds are required to complete project construction, We are proposing to apply for construction loan funds required for the Delta Wind Project from the Alaska Power Project Fund, or other available commercial loan. The Power Project Fund could be used to build this and other railbelt energy developments using tax- free bond financing for reduced loan costs. These savings could help reduce electric rates to consumers.  Construction financing could be sought from other funding sources including the Power Project Fund and commercial loan funds. 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.  Total anticipated project cost for this phase  Requested grant funding  For this grant application, there is no O&M cost associated with the design studies, and a low cost associated with the access road. Road maintenance will be required during the summer of 2010 during the construction phase of the project, but that road O&M cost will be carried in the construction budget.  For the Delta Wind Project, direct O&M costs are estimated (based on industry experience) at about one cent per kWh. More definitive numbers will be available as the final design is settled. 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  No wholesale power purchase agreement has been negotiated at this time with GVEA or other utilities.  We expect that the sale of our power will be at rates close to GVEA’s actual avoided cost.  We expect that the majority, about 90%, of our project will be funded using project loans, not grants. When commissioned, our project will help Alaska meet its increasing energy requirement, stabilize power costs, and avoid a portion of future taxes on carbon fuels, CO2 emissions, or carbon sequestration requirements. 4.4.4 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. GVEA’s 2007 Annual Report states that their original turbine at North Pole burns 4,300 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 20 of 24 9/3/2008 gallons of fuel each hour to make 60 megawatts of electricity. We assume that our wind generation would replace generation from the most inefficient turbine on the system, saving nearly 4,300 gallons of fuel each hour the wind farm runs at it rated 50 MW capacity. 4.4.5 Business Plan 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. We expect that the wind resource will continue to be available in the area for the foreseeable future and at little to no change in cost. Minor variations in wind may occur over the long term, and those can be anticipated in long-term pricing models for our power sales agreements. First Wind Alaska Holdings, LLC and Alaska Wind Power LLC will operate this project as independent power producers on the GVEA grid, selling wholesale power to utilities for distribution to their customers. Our power purchase agreements will allow for adjustments to prices based on inflation and other market conditions, allowing us to continue operations for the long term. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. The economics of wind generation is driven by three factors: 1. Cost of Development, Financing, Construction and Operations 2. Wind resource 3. Power price We have analyzed the cost of the Delta Wind Project and its wind resource, and have determined that with the facility of this grant for project development and infrastructure costs, a balance-of-project Alaska Power Project Fund loan, and a power price from GVEA (or other utility) that is competitive with what it pays for its other generation, we can develop, build and operate a economically viable wind generation project. Further project development work includes refining turbine and turbine location selections based on the latest wind resource, geotechnical, avian, and wildlife studies, and completing the GVEA grid integration and facilites studies. A key development effort will be the negotiation of the Power Purchase Agreement with utilities in a form that allows for long- term project construction debt financing. Other necessary components to complete include geotechnical, engineering, meteorological, financial, construction, and operations. First Wind has successfully developed and operates wind energy facilities in Maine, New York, and Hawaii. Wind resource studies over the last two years, and our economic analyses indicate that the Delta region has a viable wind energy resource that can be harnessed and sold on a sustainable basis for the benefit of railbelt customers. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 21 of 24 9/3/2008 Wind energy companies operate in many areas of the USA and in some of those areas, operating conditions are similar to the Delta region. Wind energy companies, with rare exceptions, are able to make sustainable operations in areas with much lower power costs than Delta, with or without the current federal renewable energy generation tax credit. The next Federal Administration and Congress are likely to provide additional incentives that would further bolster wind power economics, potentially reducing costs to rate payers. 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 avoided cost of ownership)  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 annual fuel displacement is about 9.5 million gallons, based on published efficiencies of turbines at GVEA’s North Pole facility. If we save the consumer just one cent on the cost of power produced from liquid fuels, we will save GVEA customers more than $1.7 million per year, or more than $35 million over the 20 year life of the wind turbines (they would be replaced by newer more efficient models at that time).  The power purchase agreement will specify the price for the power from the Delta Wind Project so the annual revenue is undetermined at this time, but we require a price sufficient to justify the construction and operation of the Delta Wind Project. We are a Qualifying Facility as defined by the Federal Energy Regulatory Commission, and thus are able to sell our power to GVEA at their RCA published avoided cost, less the cost of wind integration (if any).  Federal Tax Credits for wind include the two cent per kWh Production Tax Credit (PTC) that was recently renewed by Congress for a further year. Our project will proceed even if this tax credit fails to be extended next year, although it helps the project economics to have it.  Renewable attributes for our project will be sold, hopefully to the highest and best bidder, to further assist with project economics. The value of these will increase substantially if carbon taxes are imposed.  The State (or University if it receives title to the land) will receive millions of dollars in electric production royalties over the life of the project.  The 20-mile long transmission line will eventually serve a part of the electric transmission link between the railbelt and the Copper River basin grid. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 22 of 24 9/3/2008  Non-economic public benefits: The project will improve access to state lands in the region of the wind farm. We believe the Delta Wind Project will be an asset to the community of Delta Junction and the Interior generally, and we expect that tourists, locals, and school children will want to tour the wind farm and understand its operation Another public benefit is the job creation for construction and operation of the wind farm. This stable, long-term project could create local employment for a few people and many temporary jobs during the construction phase. The Delta Wind Project will displace about 9.5 million gallons of hydrocarbons per year that are currently being burned in combustion turbines in North Pole to generate power. This will allow the liquids to be exported through the Trans Alaska Pipeline system to the Lower-48 to reduce their need to import oil from foreign countries in distant, unstable parts of the world. We think that American energy self-sufficiency is a worthy goal, and the Delta Wind Project is another step toward attainment of that goal. SECTION 6 – GRANT BUDGET Tell us how much your total project costs. Include any investments to date and funding sources, how much is requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by tasks using the form - GrantBudget.xls The Delta Wind Project will consist of a 50 MW wind farm and a 20 mile long transmission line to the end of the GVEA transmission system near Delta Junction. The project budget is $135.3 million, comprising $ 131.3 million for capital construction, and $4.0 million for development studies, engineering, permitting, and financing. We have pursued this project for nearly two years, using our own funds and labor, with two 50 meter meteorological towers on the site collecting 10-minute average wind resource data daily. We recently added a new data logger to one site to collect more detailed one-minute average wind data to assist in our wind integration study. We have completed preliminary design of the new proposed access road and have a turbine layout plan in place. Earlier this year on February 12 we applied for and were granted an AEA grant for $100,000 in “pre-construction funding”, but the grant agreement is not in place and those funds are not yet available. We will work with AEA to decide which portions of the project to apply those funds to. On October 8, 2008 we applied for an additional Renewable Energy Fund grant of $105,000 to assist in conducting avian studies estimated to cost $131,250 at the proposed wind farm site. Those studies will proceed during the spring, summer, and fall of 2009. This application applies for $13 million in Renewable Energy Funds to complete the Final Design and Permitting phase of this $135.3 million project and begin construction with the installation of the 20 mile-long transmission line and 10 mile-long construction access Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 23 of 24 9/3/2008 road. The remaining $122.3 million for completion of the project may be supplied as a Alaska Power Project Fund loan or other commercial loan. We expect the project and other good railbelt projects will qualify for long-term project debt financing and thus preserve the State Renewable Energy Fund grant monies for smaller-scale projects in rural areas where long-term debt may be more difficult or impossible to get. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 24 of 24 9/3/2008 SECTION 7 – 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 6. D. An electronic version of the entire application per RFA Section 1.6 E. Governing Body Resolution per RFA Section 1.4 Enclose a copy of the resolution or other formal action taken by the applicant’s governing body or management that: - authorizes this application for project funding at the match amounts indicated in the application - authorizes the individual named as point of contact to represent the applicant for purposes of this application - states the applicant is in compliance with all 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 David W. Lappi Signature Title Member Date November 10, 2008